A Torrington man wants a law empowering consumers to charge their cable companies “rent” for allowing their unwanted cable boxes to stay in customers’ homes.

“I’ve got to keep it warm, I’ve got to feed it electricity. If anything happens to it, I’ve got to pay $175,” Stephen Simonin shared with the regulatorily-toothless Litchfield County Cable Television Advisory Council.  “It’s absolutely insane,” he said before being elected chairman of the Council.

The Republican-American covered the converter box debacle, and the ongoing dispute between Cablevision and Scripps-owned HGTV and Food Network, thrown off the cable lineup on New Year’s Day.

The growing variety and intensity of disputes between consumers and largely deregulated cable operators may signal a growing backlash against the cable industry and its potential for a more regulated future.

In the absence of regulation, Simonin said, “it is like the wild west.”

Simonin lodged official complaints about his converter box long before his wife began griping about the absence of Food Network from the family television. State regulators are equally powerless to force cable companies to provide content without converter boxes, or specific channel offerings, as are the various cable advisory councils.

Attorney General Richard Blumenthal, now a candidate for the U.S. Senate, said he opposed the federal law that deregulated the cable television industry in 1996, and continues to oppose it.

“I have said again and again and again over the years, Congress not only stripped states of their power to effectively protect consumers, but also failed to provide for federal protections,” Blumenthal said. There “really is no effective oversight or scrutiny.”

Telecommunications company-owned equipment, and the rental fee income earned from it, can occasionally be a source for profit-padding, especially when providers don’t allow customers to purchase and own their own equipment.  Television sets were supposed to be designed to accommodate digital cable transmissions without a required converter box as the country adopted new digital television-capable sets, but consumer experiences with a cable-box-free CableCARD plug-in cards have been mixed.

“The situation is infinitely more complicated than that suggests,” said Andrew Jay Schwartzman, president and CEO of Media Access Project. Schwartzman said about 90 percent of the televisions currently in use do not have the capability Simonin describes, though he agrees “companies like Cablevision are, in fact, monopolizing the set top box to their benefit.”

Schwartzman said the FCC has promised prompt review of a petition filed two weeks ago that demands consumers be allowed to purchase a converter box from a third party, rather than be forced to rent a box from their cable provider.

“This is a very active issue right now,” Schwartzman said.

Some of the crowd at Sunday's rally in Charleston

Verizon employees affiliated with the Communications Workers of America turned out in force Sunday to protest the proposed sale of Verizon’s West Virginia operations to Frontier Communications of Connecticut.

Hundreds of workers and union members rallied at the West Virginia Culture Center in Charleston, the state capital, to protest the deal.

The CWA is concerned the transaction will enrich a handful of corporate executives and Wall Street bankers while saddling the state with sub-standard phone and Internet service for years to come.  Frontier Communications will assume enormous debt to make the deal happen with Verizon, and set itself down the same path that ended in bankruptcy for two similar deals in the recent past involving FairPoint Communications and Hawaiian Telcom.

Union members are, of course, concerned about their future employment prospects at a Frontier-owned operation, but insist they are also concerned with the citizens of West Virginia.

“I work in the community and live in the community. I want to be able to go out to the stores with nobody yelling at me for not being able to provide service for them,” said Jim Radcliff, a Verizon employee.

(from left to right) CWA Pres. Larry Cohen, Local 2003 Pres. Anekia Greiner, and CWA District 2 VP Ron Collins

West Virginia’s governor Joe Manchin made an appearance at the rally, saying he has concerns about the proposed sale, and joined labor and community leaders to say he would do everything in his power to make the proposed deal work for working families in the state, not just Wall Street bankers.

Other rally speakers included Sen. Jack Yost, Del. Mike Caputo, state AFL-CIO President Kenny Perdue, and representatives from the firefighters, nurses and senior citizens.

Firefighters and other public safety officials are concerned about potential disruptions of 911 service, which were an ongoing problem after FairPoint Communications took control of Verizon lines in northern New England.

[flv]http://www.phillipdampier.com/video/CWA 911 Service At Risk Ad.flv[/flv]

The Communications Workers of America is concerned the sale of Verizon’s phone lines to Frontier Communications could cause disruptions in 911 service, as happened with FairPoint Communications in northern New England.  The CWA is running this ad in West Virginia.

“We need to bring high speed broadband to West Virginia and communities across the country, to foster economic growth,” CWA President Larry Cohen said.  “Instead, Verizon is using an obscure tax loophole to do a tax free deal that will leave West Virginia without a platform for achieving the speeds that are necessary for economic development.  This deal is only good for Wall Street, not Main Street.”

Cohen was speaking about Verizon’s use of the Reverse Morris Trust provision in corporate tax law, which Stop the Cap! explored last fall in detail.  This transaction could cost taxpayers as much as $600 million in lost tax revenue.

Audio Clip: Communications Workers of America Frontier-Verizon Radio Ad (30 seconds)
You must remain on this page to hear the clip, or you can download the clip and listen later.

[flv]http://www.phillipdampier.com/video/WCHS Charleston Union Opposes Sale of Verizon Landlines 1-10-10.flv[/flv]

WCHS-TV in Charleston covered the weekend rally by CWA opposing the sale of Verizon’s landlines to Frontier Communications. (2 minutes)

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/CWA Rally Excerpts 1-10-10.flv[/flv]

Here are some excerpts from Sunday’s rally including speakers protesting the proposed sale and praising union involvement in consumer protection. (courtesy: LairdWilliam) (10 minutes)

Cox has a Facebook page devoted to asking customers what they think would be fair in wireless products and pricing.

The cable industry’s definition of “fair” doesn’t always seem to connect with average consumers, who too often discover what sounds like a good deal to the local cable company isn’t a good deal for them.  Despite the skepticism, Cox Communications thinks it has a deal for you… an “unbelievably fair deal” for consumers looking for wireless service.

Cox already has a website up and running, unbelievablyfair.com where Cox Cable customers can register with their e-mail address and get updates on service availability.  They also get a free OnDemand movie coupon.

If you’re wondering what Cox is up to, here’s the scoop.

Back in 2006, Cox and several other cable companies bid for and won several frequency blocks suitable to support wireless services.  Those frequencies, along with a partnership with Sprint Nextel, are expected to serve Cox’s entry into the wireless business.  Initially launching in Hampton Roads, Virginia, Omaha, Nebraska, and Orange County, California, Cox will use Sprint’s CDMA 3G network to support its wireless service at the outset.

The company hasn’t revealed exactly how “unbelievably fair” their pricing actually is, but based on the company’s advertising campaign, it’s a safe bet it will be free from the tricks, traps, and gotchas bigger players in the market stick to their customers.  Minute plans would likely provide “rollover” of unused minutes, if not kicking the minutes bucket right out of the equation with flat rate service.  Hidden extra fees and surcharges are also unlikely to be a part of Cox Wireless’ service plans.  That could ultimately mean a plan priced competitively with Boost Mobile or Tracfone Wireless’ Straight Talk.

Cox will eventually enhance Cox Wireless and provide it in other Cox Cable service areas, as well as building out its own wireless network.

“Our research found that value and transparency are very important to consumers when choosing a wireless service plan, but they are not finding these qualities in the wireless plans offered today,” said Stephen Bye, vice president of wireless. “Total loss of unused minutes as well as unforeseen overage charges on bills are just two examples of what our customers have told us is just unfair.”

Customers have been following Cox’s invitation to join in a discussion about wireless pricing fairness on the company’s Facebook page (click the logo above to access).  From a quick review of comments, customers want lower pricing, more bundled discounts, a better handset selection, better speed, and our personal favorite – no Internet Overcharging schemes like usage caps and limits on their data network.

Cox is rolling out a major marketing campaign to promote Cox Wireless, including advertising and discussions on company-produced programs airing on Cox Cable systems in the communities where service will arrive this spring.

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/Cox Wireless Advertising Campaign.flv[/flv]

Cox Wireless’ marketing campaign includes three ad spots and a website intro. (2 minutes)

[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/Cox Connections 1-2010.flv[/flv]

Cox Cable in Hampton Roads, Virginia briefly mentions Cox Wireless in ‘Cox Connections,’ a company-produced program airing on Cox Cable.  (6 minutes)

More than a month after Mediacom promised customers their e-mail glitches were solved, problems continue to plague Mediacom customers in Iowa who continue to discover missing e-mail, inaccessible accounts, and delayed messages.  The problem has worsened to the point it merited coverage on the evening news in Des Moines.

Mediacom’s efforts to switch to an “in-house” e-mail system to improve service have caused repeated problems for Mediacom customers who simply can’t get to their e-mail.  The company blamed the problems on “software upgrades” which bring the system down while updates are installed.  Mediacom claims to try and limit downtime to the early hours of the morning when most customers won’t notice.

But they do.

Consumer Reports just released rankings of cable operators in its February 2010 issue and Mediacom rated near the very bottom — 15th of 16 companies providing TV service, dead last among 23 cable “digital phone” providers, and 24th out of 27 Internet providers, and that was only because the very worst-rated Internet providers deserve a special place in hell for their fraudband satellite service.

Mediacom’s worst ratings?  Their lousy reliability and customer service.

“We recognize that we have to continue to do a better job in customer service, and in the past year we committed significant resources to service improvements,” Phyllis Peters, a Mediacom spokeswoman, told the Des Moines Register.

While those service improvements work their way through the system, Mediacom customers don’t have to wait.  They can obtain a Gmail address in seconds and bypass Mediacom’s e-mail nightmare for good.

[flv width=”512″ height=”308″]http://www.phillipdampier.com/video/WHO Des Moines More Email Problems For Mediacom Customers 1-13-10.flv[/flv]

WHO-TV in Des Moines, Iowa tells the story of an ALS sufferer who depends on e-mail service contending with Mediacom’s inability to provide it. (3 minutes)

Lawrence, Kansas is a unique place to live.  Its local newspaper, the Lawrence Journal-World, was one of the first in America to begin an online edition in 1995.  Its owner, The World Company, just so happens to also own the independent cable system serving the community, which also provides broadband and phone service to the city’s 90,000 residents.  Its biggest competitor is AT&T, which has been upgrading parts of Lawrence with its U-verse system to stay competitive.

Sunflower Broadband, which provides a “triple play” package of Internet, cable TV and telephone service, has remained controversial among service providers because it instituted an Internet Overcharging scheme with usage caps and overlimit fees.  The company has been used by the American Cable Association, a trade and lobbying group serving independent cable operators, as a poster child for effective rationed broadband schemes that reduce demand and increase broadband profits.

Lawrence, Kansas

Customers generally have loathed usage caps, particularly when they were stuck choosing between Sunflower’s faster, usage capped broadband service or a low speed DSL product from AT&T.  Stop the Cap! receives more complaints about Sunflower Broadband than any other provider, except Time Warner Cable during its own Internet Overcharging experiment in April 2009.  Lawrence residents appreciate the relatively fast speeds Sunflower can provide, but complain they can’t get much use from a service that limits customers to a set allowance and then bills them up to $2 per gigabyte in overlimit penalties when they exceed them.

Last fall, things started to change in Lawrence as AT&T began offering it’s U-verse service in parts of the community.  We began receiving e-mail from Lawrence residents pondering a new service plan Sunflower Broadband introduced — Palladium, an unmetered broadband option priced at $49.95 per month.  It sounded like a good deal, perhaps introduced to protect them from U-verse customer poaching, until they noticed Sunflower was  selling the plan without a fixed downstream or upstream speed.  In fact, no speed was mentioned at all.  Indeed, Sunflower’s Palladium is nothing new to those living abroad under various cap ‘n tier broadband regimes.  It’s comparable to New Zealand Telecom’s Big Time plan, where customers need not fear overlimit fees and penalties, but have to live with a “traffic management” scheme that gives priority to customers on other plans living under a usage cap.

In other words, Palladium customers get last priority on Sunflower’s network.  If the network is not congested, these customers should enjoy relatively fast connections.  But during primetime, expect speeds to drop… and dramatically so according to customers writing us.

Sunflower Broadband's Internet pricing - add $10 if you want standalone service

That customers debate just how slow those speeds can get testify to the nature of cable’s “shared infrastructure.”  Groups of subscribers are pooled together in geographic areas and share a set amount of bandwidth.  As usage increases, so does congestion.  Responsible operators measure that congestion and can split particularly busy neighborhoods into two or more distinct “pools,” each sharing their own bandwidth.  Based on the variable reports we’ve read, it’s apparent Palladium works better in some parts of Lawrence, namely those with fewer broadband enthusiasts, than others.

Network management is a major concern of Net Neutrality proponents.  It allows an operator to artificially impede traffic based on its type, who generates it, and potentially how much a customer has paid to prevent that throttling of their speed.  In the case of Palladium, network management is used to give usage-capped customers first priority for available bandwidth, and push Palladium customers further back in line.

Judging the quality of such a service is a classic case of “your results may vary,” because it is entirely dependent on when one uses the Internet, how many others are logged in and trying to use it at the same time, how many customers are saturating their connections with high traffic downloading and uploading, and how many people are sharing your “pool” of bandwidth.  Oh, and the quality of your cable line can create a major impact as well.

Sunflower Broadband representatives claim Palladium is “optimized for video” and should provide at least 2Mbps service during peak usage and up to 21Mbps service at non-peak times.  That’s a tremendous gap, and we wanted to find out whether most customers were getting closer to the low end or the high end of that range.

Back in October, we wrote a request in the comments section of the Journal-World asking customers to e-mail us with answers to several questions about their experiences with Sunflower Broadband:

• 1) whether you ever exceed the cap.
• 2) do you think there should be one.
• 3) would you prefer faster speed with a cap or slightly slower speed with no cap.
• 4) your experience with the new unlimited option.
• 5) whether you would contemplate switching to AT&T U-verse if it meant escaping a usage cap, even if it had slower speeds.
• 6) Would you pay more for faster speed and no cap?
• 7) your overall feelings about Sunflower Broadband.

We heard from just over two dozen readers sharing their thoughts about the company and its service.  The response was mixed.

Generally speaking, customers hate the usage caps Sunflower Broadband maintains on most of their broadband tiers.  All thought it was unfair and unreasonable to limit broadband service under Sunflower’s Bronze tier to just 2GB per month and their Silver tier to just 25GB per month.  Most customers who wrote subscribed to the Silver tier of service with 7Mbps/256kbps speeds at $29.95 per month.  They also paid a $5 monthly modem rental charge.  Those who wrote who fit the “broadband enthusiast” category were internally debating whether the Gold plan, with its assured 50Mbps/1Mbps speeds for $59.95 per month was a better option, even with a 120GB allowance, or whether they should opt for Palladium’s $49.95 option to escape the usage cap.

Among enthusiasts, some felt Sunflower responded to customer demands by offering an unlimited plan in the first place, and thought it was an acceptable trade-off to obtain lower speeds at peak usage times for a correspondingly lower price, and no cap, as long as speeds were reasonable at all times.  Others were offended they had to make the choice in the first place.

“If I lived anywhere else, I wouldn’t have to choose between a throttled service or one that asks for $60 a month for 120GB of service,” writes Steve from Lawrence.  “AT&T DSL for me is 1.5Mbps service because I live close to the edge of the distance limit from AT&T’s exchange.”

But Justin, also from Lawrence, has a more favorable view. “I hate their usage cap with a passion, but when you look at what small cable companies usually offer their customers, it’s slow speed service at terribly high prices,” he writes. “At least Sunflower did DOCSIS 3 upgrades and can offer big city speeds here.  How long will that take other small independent providers?”

Troy adds, “at least they gave us one choice for unlimited service.  Time Warner Cable and Comcast sure didn’t.”

About half of those who wrote did exceed their usage cap by underestimating the amount of usage in their respective households.  Most of those who did were on the Silver plan.

Dave writes, “I knew right off the bat the Bronze tier was ridiculous for anyone to choose, and our family has three teenagers so we knew that was not an option.  We tried the Silver plan when we switched from AT&T DSL service and blew the lid off that 25GB cap probably within two weeks and got a crazy bill.  At least Sunflower forgave the overlimit fees for the first month, but they could afford to because we upgraded to Palladium, paying them $20 more per month.”

One customer's dismal Palladium speed test result from last October, likely the result of a signal problem

Angela, who shares an apartment with two other roommates had their share of fights over who used up all the broadband allowance.

“We have a wireless network and everyone splits the bill, but when we ran up almost 200GB of usage, we freaked.  Nobody would admit to using that much Internet.  Thanks to my boyfriend, we discovered our wireless router was wide open and one of our lovely neighbors probably hopped on to enjoy,” Angela writes.

Sunflower also forgave their overlimit bill for the first month, but they decided to take advantage of an introductory offer from AT&T and switched to U-verse and are much happier.

“At least with AT&T, we know what our broadband bill is going to be and we don’t have fights or worries about getting a huge bill from Sunflower,” she adds.

Among those answering our question about reduced speed in return for no cap, the consensus view was “we would need to know what speed they are providing.”  Broadband speed was important to most who wrote.  While many may not be able to discern a difference between 10 and 20Mbps service for most online activities, obtaining 2Mbps service when expecting closer to 20Mbps is readily apparent, and that was the biggest problem with Palladium users unimpressed with its performance.

“Palladium is god awful, and close to unusable on the weekends and during the early evening when everyone is online,” writes Kelly, also in Lawrence.  “We have college students all over the neighborhood and these people can’t be unconnected for a minute, so I’m not surprised Palladium crawls when everyone is online.”

Kyle, a regular Stop the Cap! reader writes the whole concept of Palladium leaves a bad taste in his mouth.

“Palladium is the equivalent of going into a restaurant and eating leftovers — whatever speed is leftover, it’s yours.  Sometimes it might be a whole meal, other times scraps!  It’s an example of crappy customer service coming from a provider which doesn’t have much competition (although maybe that will change with U-verse),” he says.

Kyle is on the Gold plan, but remains unimpressed with Sunflower:

“Is there another DOCSIS 3 system in the country that limits upload speed to 1Mbps or has a bandwidth cap this low (120 GB) with DOCSIS 3?”

Stop the Cap! also obtained access to the company’s subscriber-only forums and discovered considerable discontent with Sunflower’s broadband service.

“I recently switched over to Palladium to avoid the new Gold price gouging. I bought the new modem set it up and much to my surprise my speeds were HORRIFIC! Consistently 4.5Mbps service over the course of a week at various times. Upload speeds were so terrible it took 15 minutes to send emails with one minute movies,” writes one user.  “So, for $20 more a month Palladium offers much slower speeds BUT unlimited bandwidth (which according to Sunflower’s own statistics almost no one exceeds their limits anyway.)  What a rip-off. All I want is my old Gold back, same speed and price. I am absolutely disgusted with Sunflower. Calling Palladium “variable speed” is a lie. You are throttling customers – period.”

“So I have Palladium and the speeds are decent, usually around 10Mbps down (we won’t talk about up speeds.) But every time I run a torrent my speeds go down to about 500kbps. The second I turn off my torrent client and run a speed test again its right back up to 10. Has anyone else been having similar issues? It seems like Sunflower throttles my entire connection when they detect a torrent,” writes another.

One Lawrence resident claims he was blacklisted by Sunflower Broadband after criticizing them.

“Their blacklisting of me served as a warning to others after I spoke out nationally.  They are quite pissed and I’m not allowed to go to any event sponsored by them.  I even got removed from the local Twitter festival,” a person who I have chosen to keep anonymous writes. “The nutshell is that the bandwidth from DOCSIS 3.0 is extremely throttled for Palladium users. If they have done heavy downloading the throttle drops speed to about 2Mbps.”

For Lawrence residents who have decided they don’t like the choices Sunflower provides for broadband service, the good news is that AT&T is upgrading their network in the city to provide U-verse service, and many who wrote us have switched just because AT&T does not engage in Internet Overcharging caps and limits in Lawrence.

There is even a blog devoted to comparing Sunflower Broadband service with AT&T U-verse.  The Lawrence Broadband Observer has been reporting on the dueling providers since August.  His verdict: AT&T U-verse wins for broadband for its more stable speeds, and no Internet Overcharging schemes, even if it costs more:

We decided to go with U-verse for our Internet service, canceling our Sunflower Broadband Internet, which we had used for over 13 years. U-verse’ top line internet costs $15 more per month then Sunflower’s; we decided that the advantages of U-Verse for Internet were enough to make this extra $15 per month a reasonable value.

Furthermore, the speed of U-verse has been remarkably consistent, always ranging between 16 and 17Mbps down and about 1.4Mbps up, no matter the time of day.

While Sunflower’s service is very fast at certain times of day, it frequently slows down during evenings or other times of heavy network use, sometimes to less then half of the speed we were paying for.

The other primary reason we went with U-verse was because U-verse does not have bandwidth overage fees or any kind of bandwidth limits. Although we have been careful with Sunflower and managed to avoid any bandwidth overage charges, having “the meter running” all the time was annoying, and we worried that we could always be surprised with an unexpected charge. With U-verse we do not have this worry.  One could almost think of the $15 extra for U-verse as an insurance policy…it buys peace of mind not having to worry about bandwidth overages.