The next standard for cable broadband is now due by 2020.

For over a year, the cable industry has been stalled after deciding to slash investment in broadband while enduring indecision and confusion over the next generation of cable broadband.

At issue is a simmering disagreement — rare for the usually unified cable industry — about the next generation of cable broadband, dubbed DOCSIS 4.0.

Two sides have emerged. Cable giant Comcast has spent years gradually preparing its network for perhaps the last iteration of coaxial copper-delivered cable internet service. It has spent at least five years gradually pushing optical fiber closer to its customers, retiring additional coaxial cable and the amplifiers and other equipment associated with that technology. The result is a company ready to embrace Full Duplex DOCSIS, known as “FDX.”

FDX is designed to allow upload and download traffic to share the same spectrum, letting cable companies put internet service bandwidth to full use with maximum efficiency. Comcast wants FDX to be a central part of DOCSIS 4.0. The company has been working through a long-term plan to offer much faster internet service, including symmetrical broadband — unified upload and download speeds. This would erase the cable industry’s broadband Achilles’ heel: download speeds much faster than upload speeds.

To achieve FDX, cable companies have to push fiber much deeper into their networks, sometimes right up to the edge of neighborhoods. It also means eliminating signal amplifiers that help keep signals robust as they travel across older coaxial cable infrastructure. Engineers call this concept “Node+0” architecture, which means a network with zero amplifiers.

FDX gives the cable industry the opportunity of running a more robust broadband network, easily capable of 10 Gbps with an upgrade path to 25 Gbps later on. The downside is that it can be very expensive to implement, especially if a cable company has under invested in upgrades and not incrementally laid a foundation for FDX. Wall Street may balk at the upgrade costs. The logistics of readying degrading older infrastructure to launch FDX may be so onerous, some cable systems may find it more cost effective to scrap their existing hybrid fiber-coaxial (HFC) networks and switch to a state-of-the-art fiber to the home network instead. That is precisely what Altice USA is doing with its Cablevision/Optimum system in New York, New Jersey, and Connecticut.

Charter Communications, along with many other smaller cable operators, have been pushing an alternative to FDX that is likely to cost much less to implement. Extended Spectrum DOCSIS (ESD) is designed to work over existing cable systems, including those that still rely on amplifiers and aging coaxial cable. Instead of allowing internet traffic to share bandwidth, ESD follows the existing standard by keeping upload traffic on different frequencies than download traffic. It simply extends the amount of bandwidth open to both types of traffic, which will allow cable systems to raise speeds. ESD will dedicate frequencies up to 3 GHz (and higher in some cases) for internet traffic. DOCSIS 3.1, the current standard, only supports internet traffic on frequencies up to around 1.2 GHz. ESD will also allow cable companies to raise upload speeds and should support up to 10 Gbps downloads. But there are some questions about how well ESD will support 25 Gbps speed and the condition of the cable company’s existing coaxial network will matter a lot more than ever before. A substandard network will cause significant speed degradation and could even disrupt service in some cases.

Despite the limitations of ESD, many cable companies consider its low implementation cost a principal reason to support it over FDX.

For much of this year, cable companies have put upgrades on hold as the industry sorts out which direction DOCSIS 4.0 will take. Equipment manufacturers and vendors have resorted to layoffs and cutbacks and have signaled neither Comcast nor other cable companies are big enough to justify different DOCSIS standards supporting FDX or ESD.

Comcast and Charter are the two largest cable companies in the United States.

Therefore, the cable industry has informally decided DOCSIS 4.0 will need to support both FDX and ESD under a single specification, with next generation cable modems and equipment capable of supporting either technology. At a joint pre-Cable-Tex Expo conference held on Monday, executives from Comcast and Charter appeared to support the new unified approach to DOCSIS 4.0.

John Williams, vice president of outside plant engineering and architecture at Charter Communications, told attendees cable companies need to support both FDX and ESD and stop taking an “either/or” approach.

“In order to do this, we need to look at the synergies and embrace ESD and FDX as the next generation of HFC,” Williams said. “It’s all about scale.”

Charter has been significantly challenged historically because its own legacy cable systems were often behind the times and sometimes dilapidated. Its 2016 acquisition of Time Warner Cable and Bright House Networks only complicated things further, because neither operator had a reputation for using state-of-the-art HFC technology. Costly upgrades have been underway at many Charter-owned cable systems since the merger closed, some still ongoing.

Robert Howald, part of Comcast’s network upgrade team, called the emerging DOCSIS 4.0 standard a “perfect complementary pair” of FDC and ESD. He noted both approaches will allow cable systems to boost speeds to at least 10/10 Gbps, with faster speeds in the future.

Howald pointed out Comcast is already testing FDX technology in Connecticut and Colorado, working out bugs and unexpected technical challenges.

“We feel like we’ve significantly de-risked some of the technology components of FDX,” Howald said. “We felt really good about what we saw in the field.”

What is Full Duplex DOCSIS? This video from CableLabs explains the technology and how it differs from other DOCSIS cable broadband technology. (1:58)

Time Warner Cable used to sell $14.99/mo slow speed internet. Spectrum agreed to grandfather the program for existing enrolled customers.

Charter Spectrum is raising both the speed and price of its legacy Everyday Low Price Internet package (ELP), formerly sold by Time Warner Cable.

Customers grandfathered on an existing Time Warner Cable ELP plan will see the following changes, reported by several of our readers, likely already in effect in some areas:

• NY/NJ Customers: Speeds increased from 3/1 Mbps to 20/2 Mbps. Price increasing from $14.99/mo to $19.99/mo.
• Other States: Speed increase to 20/2 Mbps. Customers will be notified of a $3 rate hike, bringing the new price to $27.99/mo.

A modem rental fee may also apply in most states, unless you use your own cable modem. Outside of New York and New Jersey, most legacy ELP customers have already experienced several gradual rate increases on this plan, which was originally sold nationwide for $14.99/mo. The first rate increase took most customers to $19.99/mo, followed by a rate increase last fall to $24.99/mo. Now Charter Spectrum has notified customers of another $3/mo rate hike, bringing the monthly rate to $27.99.

Stop the Cap! fought for and won a special concession for New York State residents as a consequence of the approval of the Time Warner Cable-Charter Communications merger. We requested the New York State Public Service Commission make the continued availability of price fixed ELP service a condition of the 2016 merger approval. The PSC agreed with us and made continued availability of the $14.99 service for at least three years part of the deal. That deal condition recently expired and Charter Spectrum is ready to raise the price of the service in New York and New Jersey, but also dramatically boost its download speed. New York and New Jersey residents will continue getting a substantial discount off the price Charter Spectrum charges elsewhere, at least for now.

Frontier Communications is preparing a detailed plan for bondholders explaining how the company hopes to cut its $17 billion in debt before it faces the possibility of bankruptcy.

The Wall Street Journal reports Frontier is ready to begin formal negotiations with those holding its debt to create a new payback plan before it faces the first of several repayment deadlines for bonds running into the billions, starting in 2022. But the strategy is risky because if any of the company’s major bondholders disagree, it could put Frontier on a fast track to Chapter 11 bankruptcy reorganization.

Frontier’s debt problems are a consequence of its decision to expand its wireline footprint through acquisitions of castoff copper landline networks being sold primarily by Verizon Communications and AT&T. Critics have repeatedly called out Frontier for bungling network transitions with extended service outages, billing problems, and other customer service-related failures that left customers and some state regulators frustrated and alienated. The company is still facing regulatory review in states like Connecticut, where it failed to properly manage a customer cutover from AT&T’s systems to its own, and in Utah, West Virginia, California, and Florida where similar cutovers from Verizon Communications left more than a few customers without service and months of billing problems.

As a result, Frontier lost many of the customers it acquired, with many unwilling to consider doing business with the phone company ever again.

Although Frontier’s latest acquisitions of Verizon landline customers in California, Texas, and Florida included large Verizon FiOS fiber to the home territories, Frontier customers continue to disconnect service at a greater pace than the phone company’s chief cable competitors — Comcast and Charter Spectrum. Customer defections are even worse in large sections of Frontier’s stagnant “legacy” markets — service areas that have been managed by Frontier or its predecessor Citizens Communications for decades. That is because almost all of those legacy markets are still serviced by decades-old copper wire networks, many capable only of providing low speed DSL internet access.

Frontier’s large debt load is cited as the principal reason the company cannot embark on upgrade efforts to replace existing copper wiring with optical fiber. In fact, virtually all of Frontier’s fiber service areas have been acquired from AT&T or Verizon. Frontier executives have attempted to placate shareholders by promising to aggressively manage costs. But promises of dramatic savings have proved elusive and frequent media reports have emerged covering extensive service outages, poor network maintenance, ongoing billing and customer service issues, and inadequate staffing to address a growing number of service outages and problems. In several states, repeated 911 outages have triggered regulator investigations with the prospect of stiff fines.

Three Frontier insiders have privately shared their insights with Stop the Cap! about ongoing frustrations with the company and the most recent developments.

“Upper management has no comprehension that in many of our markets, customers have choices and they abandon us when all we can sell is DSL service at speeds often less than 12 Mbps,” one senior regional executive told us. “Our retention efforts are so poor these days, representatives are not really expected to rescue accounts because in most cases there is no legitimate reason to do business with us. In some states where there are high mandated surcharges, we cost more than our cable competitors.”

Another mid-level executive in one of Frontier’s largest legacy markets — Rochester, N.Y., said morale is low and a growing number of colleagues believe the days to bankruptcy are short.

Frontier Communications debt load.

“Our loyal customers are literally dying off, as their adult children disconnect decades-old landline accounts,” said an executive who wished to remain anonymous because they were not authorized to speak with the media. “The customer numbers have been ugly for a long time and are getting worse. Our recently retired customers who have had DSL and voice service with us since the 1990s are disconnecting because some have gone with Spectrum and others are moving out of the area. Some of these customers hate Spectrum and won’t do business with them no matter the price, but we are losing their business anyway when they move out of state.”

The Rochester executive noted Frontier has an impossible job trying to sell its internet and voice products against Charter Spectrum.

“Their offers are $40 a month for 100 Mbps internet and $10 for unlimited local and long-distance calls,” the executive noted. “Ours costs nearly $30 just for the phone line after taxes and fees, and how can you sell someone DSL that delivers less than 6 Mbps to many parts of a market still served by copper trunk lines to a central office several miles away? They also find out they have to lease our modem at an additional fee and there are other fees in the contract many customers have learned to look for. Answer: you can’t.”

A Frontier executive in Ohio shared a similar story.

“We hold our own in our rural markets where we can offer a customer better than dial-up internet, and our service is very good if you live in an area where we expanded broadband thanks to FCC subsidies. Some of these new areas are even served by fiber,” the executive explained. “The problem with this is fewer people live in rural areas and these places cost a lot more to maintain when we dispatch service crews or have to run new cable. For Frontier to be truly successful, we have to get better internet service into our larger older markets, but that means pulling copper off poles and putting up fiber and there is just no interest from the higher ups to spend the money to do this. So instead the company bought new territories to keep revenue numbers up, but we are also quickly losing many of those customers to cable too. I really don’t know what we will do when wireless companies offer 5G internet.”

Some Frontier bondholders recognize Frontier must reduce its debt to have the financial resources to expand fiber service. Others want the company to shed its legacy copper service areas (while keeping FiOS/U-verse enabled markets) either to regional companies willing to invest in upgrades or to hedge funds that would likely ring whatever remaining value still exists out of these abandoned service areas. Some suspect these hedge funds would also load up the spinoff companies with even greater debt to facilitate dividend payouts and other investor-friendly rewards.

It will be up to state and federal regulators to protect Frontier’s customers as the two emerging groups of conflicting bondholders angle to protect their investments, perhaps at the risk of reliable phone and internet service.

The Wall Street Journal:

One, including Elliott Management and Franklin Resources, pushed for an exchange of their bonds at a discount to their face value for new secured debt that would be paid before unsecured debt in a potential bankruptcy.

Still, bondholders including GoldenTree Asset Management have warned the company against doing such a swap since 2018, arguing it violated the terms of their bonds.

The company this week reached out to Houlihan Lokey, which represents a group of bondholders that includes GoldenTree—as well as JPMorgan Chase & Co., Oaktree Capital Management and Brigade Capital Management—to sign up to view a confidential restructuring proposal, a person familiar with the matter said. That group has yet to gather enough holders to form a majority, people familiar with the matter said.

Comcast internet-only customers that used to pay $5 a month for an X1-powered streaming video box with an X1 voice remote will now get their first box for free.

The XFINITY Flex Streaming Box, capable of streaming 4K video from Comcast’s own streaming video platform and supported streaming apps from services like Amazon Prime Video, Epix, Hulu, HBO, and Netflix, is Comcast’s solution for cord-cutters that might be thinking about switching internet providers or could be lured back to an inexpensive video package if the price is right.

The platform should be familiar to former Comcast video customers that used to use Comcast’s X1 set-top box, and includes access to Comcast’s large TV Everywhere on-demand content library, which includes over 10,000 free, advertiser-supported movies and TV series.

In fact, the only services not available on the platform are Comcast’s live TV streaming competitors like AT&T TV Now, YouTube TV, and similar services.

The first box is now bundled with internet-only service, with each additional box priced at $5/month.

XFINITY Flex is now bundled with Comcast’s internet-only service, with the first box available for free. (0:37)

Comcast is planning to debut its new streaming TV platform under the NBC “Peacock” brand next April with a lineup of original shows starring well-known talent including Alec Baldwin, Demi Moore, Christian Slater, and Ed Helms.

Peacock will most closely resemble the advertiser-supported Hulu platform, with 21 million Comcast cable television customers getting access for free. Comcast is reportedly also negotiating with other cable, satellite, and telco TV providers about bundling free basic Peacock subscriptions for their cable TV customers as well. Those who never subscribed to cable TV or cut the cord will be offered the option of a lower cost, commercial-filled subscription or a more expensive ad-free option, presumably at prices similar to what Hulu charges ($5.99-11.99).

Peacock’s subscription model is designed to protect Comcast’s cable TV revenue. For existing Comcast cable TV customers, giving ad-supported subscriptions away for free may add to the value proposition of keeping a cable TV subscription. By charging subscription fees to everyone else, Comcast is not ‘giving away the store for free.’ If it did, it could upset other pay television companies that are facing ever-rising retransmission consent fees and programming costs for Comcast/NBC-owned TV stations and cable networks including CNBC, MSNBC, and the USA Network.

Comcast is confident its long experience offering streaming TV Everywhere services including live streaming and on demand programming will mean it will not face the kinds of scaling mistakes other streaming services have had. Bonnie Hammer, the NBCUniversal executive appointed to run Peacock, believes the service’s deep content catalog, starting with 15,000 hours of NBC and Universal Studios TV shows and movies complimented with other acquired and original productions will give viewers plenty to watch.

“I’m not sure anybody else out there can do what we can do,” Hammer told the Wall Street Journal. “We expect to have great content and a great product [that] is really easy to use.”

In addition to scripted content, Peacock will also feature live and recorded news and sports programming from NBC.

Among the shows featured on the Peacock platform:

Original Drama Series

ANGELYNE (limited series)
Limited series based on The Hollywood Reporter feature that explored the identity of L.A.’s mysterious billboard bombshell.

BATTLESTAR GALACTICA
Battlestar Galactica reboot.

BRAVE NEW WORLD
Based on Aldous Huxley’s 1932 novel, Brave New World. The series envisions life in a utopian society that bans monogamy, privacy, money, and never discusses history.

DR. DEATH
Inspired by a podcast by the same name. Dr. Death follows the true story of Dr. Christopher Duntsch (played by Jamie Dornan), a rising star in the Dallas medical community who also emerges as a deadly sociopath. Duntsch’s successful neurosurgery practice gradually deteriorates into a horror show of permanently disabled or dead patients. Two fellow doctors, played by Alec Baldwin and Christian Slater, fight an entrenched medical bureaucracy designed to protect money-making doctors to get his practice shut down.

ONE OF US IS LYING (pilot)
Based on the novel One of Us Is Lying, the crime series follows the unfolding of events after five people spend an afternoon in detention, but only four leave alive.

UNTITLED REAL HOUSEWIVES SPINOFF (no details provided)

Original Comedy Series

A.P. BIO (Season 3)
Picks up where the original NBC TV series left off. When disgraced Harvard philosophy professor Jack Griffin (Glenn Howerton) loses out on his dream job to his rival Miles Leonard (Tom Bennett), he is forced to return to the small town Toledo, Ohio and work as an advanced placement biology teacher at the fictional Whitlock High School. Jack makes it clear to his class that he will not be teaching any biology. Realising he has a room full of honor-roll students at his disposal, Jack decides to use them for his own benefit: getting revenge on Miles. Eager to prove that he is still king of the castle, Principal Durbin (Patton Oswalt) struggles to keep Griffin under control.

PUNKY BREWSTER (pilot)
This continues of the iconic 80s sitcom about a bright young girl raised by a foster dad features Punky as a now single mother of three trying to get her life back on track when she meets a young girl who reminds her a lot of her younger self.

RUTHERFORD FALLS
A small town in upstate New York is turned upside down when local legend and town namesake, Nathan Rutherford (Ed Helms) fights the moving of a historical statue.

SAVED BY THE BELL (reboot)
When California governor Zack Morris gets into hot water for closing too many low-income high schools, he proposes they send the affected students to the highest performing schools in the state – including Bayside High. The influx of new students gives the over-privileged Bayside kids a reality check.

STRAIGHT TALK
Straight Talk examines what happens when two opposing ideologies are forced into an odd coupling. The main characters will be challenged by one another, making the moral lines at which they once stood harder to define.

Original Unscripted Shows 

THE AMBER RUFFIN SHOW
A weekly show featuring Amber’s “signature smart-and-silly take on the week.” The show will de-emphasize talking with guests and spend more time on comedy routines.

WHO WROTE THAT
A docuseries designed to showcase Saturday Night Live’s comedy writers.

Original Made-for-Peacock TV Movie

PSYCH 2: LASSIE COME HOME
Based on the USA Network show Psych, Santa Barbara Police Chief Carlton Lassiter is ambushed on the job and left for dead. In a vintage Psych-style Hitchcockian nod, he begins to see impossible happenings around his recovery clinic. Shawn and Gus return to Lassie’s side in Santa Barbara and are forced to navigate the personal, the professional, and possibly the supernatural. Separated from their new lives in San Francisco, our heroes find themselves unwelcome in their old stomping grounds as they secretly untangle a twisted case without the benefit of the police, their loved ones, or the quality sourdough bakeries of the Bay Area. What they uncover will change the course of their relationships forever.

Legacy Shows in the Peacock Catalog

Bates Motel
Brooklyn Nine-Nine
Cheers
Chrisley Knows Best
Covert Affairs
Downton Abbey
Everybody Loves Raymond
Frasier
Friday Night Lights
House
Keeping Up with the Kardashians
The King of Queens
Married … with Children
Monk
Parks and Recreation (exclusive, available Oct. 2020)
Parenthood
The Office (exclusive, available Jan. 2021)
Psych
The Real Housewives
Royal Pains
Saturday Night Live
Superstore
30 Rock
Top Chef
Will & Grace
100 Dias Para Volver (Spanish-language)
Betty in NY (Spanish-language)
El Barón (Spanish-language)
Preso No. 1 (Spanish-language)

Peacock’s Legacy Movies Catalog

American Pie
Back to the Future
A Beautiful Mind
Bourne franchise
The Breakfast Club
Bridesmaids
Brokeback Mountain
Casino
Dallas Buyers Club
Despicable Me franchise
Do the Right Thing
Erin Brockovich
E.T. The Extra Terrestrial
Fast & Furious
Field of Dreams
Jaws
Knocked Up
Mamma Mia!
Meet the Fockers
Meet the Parents
Shrek