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Misleading Antenna Scams Are Back

Phillip Dampier July 10, 2018 Consumer News 189 Comments

A typical flat/mud flap style antenna.

Proliferating in online ads, newspapers, and sometimes on television, “revolutionary” new antennas are being advertised claiming to replace cable television while getting most (if not all) of the same channels over the air for free.

These misleading scams have been around for several years. We covered one well-funded ad campaign for “Clear Cast” back in 2011. That particular over-the-air antenna was sold through newspaper ads designed to mimic a newspaper story, with bold headlines like “New Invention … Gets Rid of Cable and Satellite TV Bills.” Those who spent upwards of $50 received a slightly dressed-up bow-tie antenna barely suitable to receive UHF TV stations and worked about as well as a similar antenna selling for $1.49.

With the first wave of misleading ads well behind us, marketers have had to work overtime to reinvent the wheel and convince people to spend $40-50 for what usually cost the company under $5 to manufacture.

Now, instead of the “Clear Cast” antenna, there is the “ClearView HDTV Antenna,” marketed by a company named True Signal. It’s hardly alone. The Octa Air, The Fox, and many others are nearly-identical “mud flap”-style antennas, with a tiny “antenna” embedded inside. The concept marginally works when the owner attaches it to a window, which gives it more signal to work with than an antenna placed in the corner of a room.

The ad copy on the manufacturer’s website is usually over the top but is nothing compared to some of the advertiser-sponsored editorials — “advertorials” published by bloggers, third party advertisers, and fly-by-night websites that exist primarily to cash in on sales commissions. More than a few of those stretch marketing claims into the stratosphere.

Goodsavingstips.com is designed to look like an online combination of a high-tech website and Consumer Reports. In fact, it is a website that reviews products, but has a financial incentive to write glowing reviews to encourage you to buy whatever they write about.

Goodsavingstips stretches the truth about the ClearView antenna more than a salt water taffy machine on the Atlantic City Boardwalk:

If you could stop paying for cable or satellite TV and still get all of your favorite TV channels in HD for FREE, would you do it? Millions of Americans are doing just that, thanks to a brand new rule in 2018 that allows certain regions access to free TV.

Thankfully, if you live in an area where this new rule went into effect, you no longer need to give your hard earned money away to the big cable companies. As a result, Americans are now cutting the cord on their cable companies in record numbers, saving them thousands of dollars.

Up until 2018, cable companies were allowed to “scramble” their channels so that the general public could not access them without paying for their service. However, that all changed starting in 2018, with the government ruling that TV signals are public property and “belong to the people”. Ever since this rule went into effect, the big cable companies are panicing [sic] because many Americans will no longer need to pay for cable or satellite tv to get their favorite channels in HD. As long as you live in a publicly broadcasted [sic] area, it is now possible to watch all of your favorite channels for free with a TV antenna.

Boastful claims about the TrueSignal antenna.

Several antenna companies market their antennas using similar language. There is, in fact, no 2018 “new rule” suddenly mandating your access to free TV. You have been able to watch free TV for decades. Notice the ad copy does not directly state you can receive cable and satellite channels over the air. It only states you can watch “all your favorite channels,” which in this case better be local TV stations and not networks like USA, TNT, CNN, etc. Consumers did not need a new rule to cut the cable TV cord. They just needed competition.

A map invites consumers to see if “free TV” is available in their state. Unsurprisingly, it is in all 50 states.

The rules regarding scrambling have only toughened against consumers over the last few years, not improved. Cable operators are now permitted to encrypt their entire TV lineup, even those channels customers used to watch using a built-in QAM tuner. The encryption allows cable companies to disconnect service from the office instead of dispatching a truck to physically disconnect the line going to your home or apartment.

However, not all TV antenna’s will work. In an attempt to block the public from picking up their TV signals, the cable companies are broadcasting their signals at very low frequencies since most antenna’s will not be able to pick them up. The trick is to get an antenna that can reliably pick up these low frequency signals, and up until now, there hasn’t been an antenna advanced enough to pick these signals up reliably. (There are other antenna’s out on the market, but they fail miserably in comparison to this one).

This is plainly false. Cable companies do not “broadcast” signals over the air. They send them through cables, hence the name “cable” television. Most cable systems also encrypt their digital lineups and no television antenna alone will decrypt them. If we were charitable, we could hazard a guess the reviewer is trying to suggest there are low-power television stations out there which need a better antenna to receive clearly, but these stations are independent of cable operators, don’t transmit on “very low frequencies,” and have been around for years.

Developed by a NASA engineer using military technology, the ClearView HDTV Antenna was just released this year so that it could specifically pick up these signals reliably and has been hailed as the only “super” HDTV antenna. It uses a discrete mud flap modern design which makes it the most reliable and technologically advanced antenna to hit the market today. It can pick up signals out to 60 miles with no problem (as well as the low frequency signals) to enable you to receive free crystal-clear HD channels.

Phillip Dampier: Debunking mode.

Misleading. In fact, the original design for the so-called “mud flap” antenna came from a Raleigh, N.C. based company Mohu. The company began as a small military contractor and the original intent of the antenna was not to receive free cable television. Mohu’s founder, David Buff, was working under a military contract to research new ways to counteract improvised explosive devices (IEDs) that were used against our armed forces in Iraq and parts of Afghanistan. He devised a low/no-profile antenna that closely resembled a mud flap attached to armored military vehicles that would jam the remote wireless signals used by insurgents to detonate roadside bombs. The military chose a different approach. So if the people selling these antennas were honest, they would have to say, “Developed by a military contractor but rejected by the military itself….”

Buff would later expand Mohu as a consumer antenna company, but suggests his proprietary design isn’t the result of the ‘space age’ antenna, but rather the signal amplifier attached to it. But that is hardly groundbreaking if an antenna cannot receive enough signal to amplify.

The “reviewer” promoting the ClearView antenna (who will earn a percentage from every sale that results from a click on his website) was amazed with the results:

What happened next was astonishing…

We turned the TV on and found ourselves staring back at an incredibly clear channel in HD. We kept flipping through channels and to our amazement, every channel was crystal clear. Best of all, we received almost all of the most popular channels you would get with cable.

All in all, we were able to access 68 channels in 1080 HD. It was as if we were getting free cable or satellite TV.

Now, before you cancel your cable or satellite subscription, it is important to note that there were a few channels that we could not get with the antenna. But in the end, we were able to receive about 85% of the same channels and more importantly, they were the most popular channels that people actually watch.

The verdict:If you want to save thousands of dollars and stop paying for cable or satellite tv, and don’t mind losing out on a few random channels you probably won’t even watch….

Up and coming technology: A wireless over the air antenna that receives signals from the best place in the house and then sends channels over an in-home Wi-Fi network.

We were not surprised it was deemed astonishing, considering the companies selling these antennas routinely buy sponsored space to promote their products on independent websites or compensate reviewers with a substantial commission if their reviews result in product sales. (Stop the Cap! does not accept sponsored posts or commissions to peddle products.)

The ClearView antenna did not do well for Amazon customers.

What the reviewer experienced was… over the air television, received through an antenna. Because most television stations now broadcast a digital signal, it is not surprising every channel would appear “crystal clear” because the alternative is typically no signal at all. The article continues to mislead readers, however, when it suggests buyers would “receive almost all of the most popular channels you would get with cable.” In fact, antenna users will only receive free, over the air local stations. Getting 68 over the air digital TV channels (and subchannels) is common only in the largest cities with multitudes of over the air stations. Many of those channels target ethnic minorities with foreign language programming, religious programming or home shopping. In most medium and smaller cities, expect 20-25 channels.

Right until the end, the reviewer was prepared to mislead his readers. The disclaimer itself fails to be completely forthcoming as well, telling prospective buyers there were only “a few” channels not receivable with the antenna. That could refer to over the air stations too weak to receive, but the surrounding context invites readers to believe those few channels are cable television networks. Telling people they will receive about 85% of the “same channels” (whatever that means) and “most channels that people actually watch” is true only if you exclude all cable television networks from that list.

The worst part of this is after spending $40 on the ClearView HDTV antenna, a whopping 52% of reviewers on Amazon.com gave it just one star. One reviewer compared it with a bent coat hanger serving as an improvised antenna and the coat hanger won. Most claimed it completely failed their expectations.

These antennas are made and marketed to a gullible public that has either forgotten about the basic principles of television antenna design or were too young to have ever used one. Many of the “high-tech” antennas we see sold these days are designed to work with UHF channels only, an important issue if one or more local stations still occupies VHF channels 2-13.

A more traditional RCA set-top antenna style common from the early 1970s – today. They work reasonably well and are inexpensive. The two vertical telescoping antennas are for VHF reception and the loop is tuned to receive UHF channels. You need an antenna capable of receiving both bands if you have stations on channels 2-13.

Indoor antennas are only suitable in you live relatively close to the transmitter. In most cases, residents of a city or inner ring suburb can usually get by with two telescoping rod antennas (“rabbit ears”) and a UHF antenna shaped into a small loop or bow tie design. Traditional set-top antennas often incorporate both. The telescoping antennas can be raised or lowered and rotate in various directions until you find the best reception. A UHF antenna usually can be turned to the right or left until best reception is achieved. These antennas are perfectly suitable and cost $20 or less. There are more modern antenna designs, some flat plastic or rubber sheets, others look like miniature replicas of an outdoor antenna mounted on the roof. In most cases, the design itself is what is “revolutionary.” None of these antennas perform miracles, but many are adequate. The key is finding the right direction to point them in or keeping them as close to a window as possible. You may need to find a different window, or change the height or positioning of the antenna to get the best reception.

If your reception remains poor, you need a roof or attic-mounted antenna, (remotely rotatable preferred over fixed-mounted). These antennas are mounted higher in a home, giving a less obstructed view to the transmitter tower, and capable of collecting weak signals that would be non-existent indoors. The biggest cost involved with these is often not the antenna but the installation. A high quality roof-mounted antenna will outperform any indoor antenna and will likely receive some stations from adjacent cities.

A relatively recent development is the “wireless antenna” which receives signals from an antenna placed in an area of the home which gets the best reception and transmits received TV channels over an in-home Wi-Fi network, making long antenna cable runs unnecessary. Unfortunately, reviews of many of these products are mixed and hint the technology has to undergo further development to make it less frustrating.

For now, cord-cutters with reception challenges may find the best solution is to subscribe to one of the streaming providers like DirecTV Now, YouTube TV, Hulu, etc. Be sure to verify which stations are available to you from each service before subscribing as they vary widely in each market.

If investing in a TV antenna, start small and inexpensive and consider trying out antennas available in local stores like Walmart, which can be more easily returned if they are unsuitable. If buying online, stick with a retailer like Amazon.com where independent reviews can help give you some insight into each antenna. Just be careful about overly glowing reviews. Fake/compensated reviews are a significant problem on online retailer websites, especially for unknown or unusual products or brands trying to break through in the market.

AT&T’s Vision for HBO: Hook ’em With Freebies, Addict Them Wanting More, Monetize Everything

Phillip Dampier July 9, 2018 AT&T, Competition, Consumer News, Online Video 1 Comment

This isn’t going to be your parent’s HBO much longer.

In a recent town hall attended by 150 employees, AT&T laid out its new vision for the premium network it recently acquired. one almost similar at times to the business plan of a drug pusher.

“We need hours a day,” said John Stankey, a recent transplant from AT&T’s executive suites now tapped to run WarnerMedia — AT&T’s new name for what used to be Time Warner (Entertainment) and owner of HBO. Stankey was complaining that HBO was out of touch with the times, attracting too few viewers to its multiplex of premium channels only a handful of times a week, if that. In a world shared by Netflix, that was not nearly good enough.

HBO, which began life as Home Box Office in November, 1972 is by far America’s oldest cable television channel. Originally a venue for high profile, unedited, commercial-free movies, along with sports and specials, HBO grew into a well-respected producer of high budget (often millions of dollars per episode), cutting-edge original movies and series, showcased to loyal audiences on Sunday nights for years. Series like The Wire, The Sopranos, Sex in the City, Oz and Game of Thrones are well-known across the country, but fewer than half of Americans subscribe to HBO to watch them. HBO has also been the critics’ choice for original content, showering awards on the network in unprecedented numbers for almost 20 years.

Now that AT&T is in charge, that is all about to change, as executives prepare to shift HBO away from “quality over quantity” towards “quality and quantity.” Stankey also made it clear the changes are first and foremost about making money — a lot of it earned by keeping subscribers on HBO property so their viewing habits can be studied and sold.

Stankey

“It’s going to be a tough year,” Stankey warned. “It’s going to be a lot of work to alter and change direction a little bit.”

“It’s not hours a week, and it’s not hours a month,” Stankey said of how long he expects HBO subscribers to spend time watching the service. “It’s hours a day. You are competing with devices that sit in people’s hands that capture their attention every 15 minutes. I want more hours of engagement. Why are more hours of engagement important? Because you get more data and information about a customer that then allows you to do things like monetize through alternate models of advertising as well as subscriptions, which I think is very important to play in tomorrow’s world.”

That will be a major shift for a network overseen top to bottom since 1992 by Richard Plepler, HBO’s chief executive. Plepler expanded on HBO original movies by launching expensive scripted series in the late 1990s that stood out by escaping broadcast television network censorship. But Plepler was very selective about the number of shows on HBO’s schedule, with some series taking years to develop. Under Stankey’s leadership, HBO will now be expected to dramatically expand original content, much like Netflix has done to keep viewers coming back for more.

“As I step back and think about what’s unique about the brand and where it needs to go, there’s got to be a little more depth to it, there’s got to be more frequent engagement,” Stankey said, adding HBO’s brand has to broaden its appeal to new audiences.

That will require a big boost to HBO’s budget. The pay movie channel is already extremely profitable, making almost $6 billion in profits over the last three years. It invested $2 billion in programming development, much less than the $8 billion Netflix is investing in less costly, but more prolific programming. HBO’s business plan depends heavily on American cable subscribers paying $10-15 a month for the network. It also earns money selling its original shows to television outlets in other countries. Its high monthly cost has always limited subscriber numbers, especially these days with cord-cutting and bill shaving. Premium movie channels are often the first networks to be dropped in return for a lower bill.

Plepler

To monetize its subscriber base, HBO either has to cut the cost of the network, transform it into must-have television, or a combination of both. Stankey is unhappy HBO has wavered around 40 million subscribers (out of 142 million American potential households) for years. He told audiences the network has to find ways to move the network beyond its perpetual 35-40% penetration “to have this become a much more common product.”

There was a clear sense of tension between Plepler, who is part of the New York City entertainment scene, and Stankey, a business-focused Texan with decades of experience in the Bell System — later AT&T. Plepler’s deference to Stankey’s new vision seemed uncomfortable at times, as Stankey made it clear who was now in charge:

Stankey: “We’ve got to make money at the end of the day, right?”
Plepler: “We do that.”
Stankey: “Yes, you do, just not enough.”

Plepler’s clearly defined tenure and vision at HBO had not wavered much since taking over in the early 1990s. But that vision was nervously discarded almost immediately as Stankey looked on.

“I’ve said, ‘More is not better, only better is better,’ because that was the hand we had,” Plepler explained. “I’ve switched that, now that you’re here, to: ‘More isn’t better, only better is better — but we need a lot more to be even better.’”

As a result, HBO, which used to be the darling of critics and well-to-do viewers in big cities on the east and west coast is getting a radical makeover. Onlookers can expect a much more aggressive marketing effort and free samples of the service to attract and hold new customers. It will have to keep its pricing closer to the competition, particularly as many consumers already subscribe to 1-2 different streaming services. Then it will have to give people a reason to subscribe to just one more service.

Competition Drives Internet Prices Down 45% in Toronto This Summer

Fierce competition by eastern Canada’s largest internet service providers are driving down prices across the Greater Toronto Area by as much as 45%.

Bell’s fiber to the home service, making its way across parts of the GTA, is now offering unlimited gigabit (1,000/940 Mbps) internet for $79.95 a month, a major drop from its original price of $149.95, if customers sign up before the end of July. Those signing up by July 7 can also get a $50 gift card.

Rogers, the country’s biggest cable company, has been pushing its own limited time promotional offer for its gigabit (1,000/30 Mbps) package, which is more widely available than Bell’s Fibe but also suffers from anemic upload speed. Rogers was selling the package for $152.99/month, but it’s now $79.99 for the first year. The offer is good throughout Ontario, New Brunswick, and Newfoundland.

The two telecom companies are trying to boost subscriber numbers during the slow summer months when quarterly financial reports can show a decrease in customers.

Canadians have generally had less access to gigabit speed plans than their American neighbors. Experts believe these companies are cutting prices to hook people on super-fast internet plans that will change consumer attitudes about gigabit speed from an unaffordable luxury into a necessity. Like Americans, Canadians are gravitating towards faster speed plans at an accelerating rate. They also continue to choose unlimited plans wherever available.

There are the usual terms and conditions in the fine print to consider:

Rogers: Offer available for a limited time to new Rogers internet subscribers within Rogers cable service area in Ontario (where technology permits). Subject to change without notice. Data usage subject to Rogers Terms of Service and Acceptable Use Policy. See rogers.com/terms for full details. Taxes extra. One-time activation fee of $14.95 and one-time installation fee (waived for Self-Install; Basic $49.99 or Professional $99.99) apply. Savings as compared to regular price for 12 months. Advertised regular price applies in month 13, subject to any applicable rate increases.

Speeds may vary with internet traffic, server gateway/router, computer (quality, location in the home, software and applications installed), home wiring, home network or other factors. See Acceptable Use Policy at rogers.com/terms. An Ethernet/wired connection and at least one additional wired or wireless connection are required to reach maximum download speeds of up to 1 Gbps for Rogers Ignite Gigabit Internet. Offer available until July 31, 2018 within Rogers cable service area (where technology permits) to new customers subscribing to Ignite Internet 60u or above.

Bell: Offer ends on July 31, 2018. Available to new residential customers in Ontario, where access and technology permit. For certain offers, the customer must select e-billing and create a MyBell profile. Modem rental required; one-time modem rental fee waived for new customers. Subject to change without notice and cannot be combined with any other offer. Taxes extra. Other conditions apply, including minimum system requirements. Subject to compliance with the Bell Terms of service; bell.ca/agreements.. Speeds on the internet may vary with your configuration, internet traffic, server, environmental conditions, simultaneous use of Fibe TV (if applicable) or other factors; bell.ca/speedguide.

$50 gift card promotion: Offer ends on July 7, 2018. The selected internet tier must include unlimited usage. An unloaded gift card will be mailed after the customer maintains a continuous subscription to the same eligible Bell services and has an account in good standing for 60 days following the installation of all services. All services need to be activated by July 31, 2018. Not combinable with any other offers or promotions. Subject to change without notice. One gift card per account. When received, customer must register the gift card online at bellgiftcard.com to request loading of the amount. Allow 30 days for gift card to be loaded and ready to use. If you cancel your services before you activate your gift card, you will not be able to use your gift card. Gift card and use are subject to the card program. Other conditions apply; see bell.ca/fullinstall.

Relationship Between Spectrum and New York State Growing Worse By the Day

Whatever pleasantries were exchanged between Charter Communications and the New York Department of Public Service (Public Service Commission) earlier this year are now gone as the relationship between the cable company and state officials continues to deteriorate.

The first shot across the bow this summer came in Charter’s June 28th letter in response to a demand by the state to unconditionally accept the state’s terms of its 2016 Merger Order granting the acquisition of Time Warner Cable by Charter Communications. Except the cable company did not actually agree unconditionally to those terms. As part of a dispute over Charter’s fulfillment of its responsibilities in the Merger Order regarding rural broadband expansion, one section seemed to predict future litigation:

“While Charter’s acceptance of these commitments is unconditional, this acceptance remains subject to applicable law. Charter does not waive its positions as to the meaning or proper interpretation of its commitments (including Charter’s position that the negotiating history of Appendix A must guide such interpretation), or any of its legal rights including its right to seek review of the Commission’s June 14, 2018 Orders and the Commission’s interpretation and application of the January 8, 2016 Order.”

On July 3rd, Charter’s attorneys sent another letter to the telecommunications regulator doubling down on this language:

“Charter fundamentally disagrees that the Commission’s June 14th Order accurately reflects the agreement that was reached with Charter with respect to the Merger Order. The company intends to appeal the Order….”

That notification was included in a letter requesting an extension of the deadline to file a revised rural buildout plan to replace disqualified addresses with other New York addresses where broadband service is not currently available. Charter warned it would pursue “administrative and legal appeals” and did not want to take the time update its buildout lists until those challenges (and appeals) are exhausted. The company’s lawyers made sure to reserve all of Charter’s rights in an even lengthier footnoted disclaimer:

“Certain subjects discussed in this filing pertain to non jurisdictional products and services. Discussion of nonjurisdictional products and services is not intended as a waiver or concession of the Commission’s jurisdiction beyond the scope of Charter’s regulated telecommunications and cable video services. Charter respectfully reserves all rights relating to the inclusion of or reference to such information, including without limitation Charter’s legal and equitable rights relating to jurisdiction, compliance, filing, disclosure, relevancy, due process, review, and appeal. The inclusion of or reference to non jurisdictional information or to the ordering clauses or other requirements of the Order as obligations or commitments to provide non jurisdictional services shall not be construed as a waiver of any rights or objections otherwise available to Charter in this or any other proceeding, and may not be deemed an admission of relevancy, materiality, or admissibility generally. The requests discussed herein should not be construed in any way as a waiver by Charter of any of its legal rights, including (without limitation) Charter’s right to seek review of the June 14th Order or otherwise seek review of the Commission’s interpretation and application of its January 8, 2016 Merger Order.”

The key takeaway from this legal word salad is “non jurisdictional products and services” — code language from Charter to the state suggesting New York regulators have no legal authority to stand on imposing rules, regulations, and requirements on deregulated services like broadband. Charter’s lawyers defended the company against accusations it failed to meet the agreed-on schedule for rural broadband buildout to 145,000 unserved/underserved New Yorkers using similar language. Charter only began suggesting the state’s broadband expansion plan violated federal law after the state declared the company was out of compliance and fined.

Any legal action by Charter will likely rest on claims the federal government deregulated much of the cable business, including broadband service. Therefore, the state lacks enforcement power to compel Charter to offer broadband service to any unserved area, much less on a timetable. Remember, however, Charter was only too happy to agree to the terms of the merger agreement, with all its terms and conditions, to get the merger finished, without any complaints. Now it seems to have second thoughts.

“Charter finds that the task of revising the detailed Buildout Plan and the other requirements is far too large an undertaking to be accomplished with the necessary care and diligence required within the 21-day timeframe mandated in the Commission’s June 14th Order,” the cable company’s lawyers wrote, asking for an extension of the deadline.

Today, the Department issued a terse response to Charter’s legal team, authored by Kathleen Burgess, secretary of the Public Service Commission:

“Your request for a stay of the revisions of Charter’s Buildout Plan and the other provisions required by the Commission’s Order is not a matter for the Secretary. Your request for a 60-day extension is excessive and not adequately justified. Therefore, your request for an extension is denied.”

Two things seem clear: New York will continue to fine Charter for further missed deadlines, and it seems likely this matter is headed for court.

Spectrum Dumps Time Warner Cable’s Phone2Go App Today, Citing Low Usage

Phillip Dampier July 5, 2018 Charter Spectrum, Consumer News 7 Comments

Charter Communications will close down Time Warner Cable’s Wi-Fi calling app Phone2Go on July 5, 2018, citing low customer usage.

Originally introduced in 2014, Phone2Go was marketed as a free Wi-Fi calling app alternative to Skype or Vonage. The Android and iOS app linked to Time Warner Cable/Spectrum’s phone service, allowing customers to make free calls, text and video conference over the app when away from home or abroad. Each account supported up to five devices, which allowed distant relatives, friends, or family members to make and receive free calls.

“One of the important advantages of Phone2Go is you can give an ID to a relative or friend who lives abroad. And they can make calls as if they were in the United States. So they can call you say on your cellphone, they may be say in Europe and you are in the U.S. and they would only pay the local rate,” said Time Warner Cable Phone general manager Jeff Lindsay back in 2016.

The app was never popular with customers, however, because call quality was often poor and the app was infrequently updated. It was also cumbersome to change or add devices, and once registered to a device, it was very difficult to re-register those devices for use with another account. After Charter Communications acquired Time Warner Cable, there were frequent and long-lasting service outages affecting the Phone2Go app, which may have driven off what loyal users it had.

Spectrum is contacting customers registered for the app by phone to alert them the Phone2Go service would be discontinued on Thursday.

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