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N.Y. Public Service Commission Discovers Charter’s Misleading Upstate Broadband Numbers

Phillip Dampier May 3, 2018 Charter Spectrum, Public Policy & Gov't, Rural Broadband Comments Off on N.Y. Public Service Commission Discovers Charter’s Misleading Upstate Broadband Numbers

A utility pole with Charter Communications wiring in upstate New York.

Charter Communications has been caught counting upstate New York homes and businesses as newly served when, in fact, many have had cable service for years.

New York’s largest cable operator is once again under fire over questions about whether it is misled state officials in its claims to be expanding rural broadband service to 145,000 unserved homes and businesses. In many instances, New York regulators found evidence the company was counting residents as “newly passed” by Spectrum cable lines when regulator on-site audits found those customers were already served by Spectrum or another broadband provider.

The Buffalo News reports staff members of the New York Public Service Commission visited multiple properties and took photos and notes finding simple overhead cable replacements or non-existent addresses were counted by Charter as new expansion areas to be counted towards its agreement to expand rural broadband in return for approval of its 2016 acquisition of Time Warner Cable.

The PSC has already repeatedly admonished Charter Communications for failing to keep to its broadband expansion agreements. The regulator has also warned the company faced at least $1 million in fines and franchise revocation proceedings in parts of New York City for allegedly miscounting 12,467 addresses in dense urban areas of New York City that either already had access to Spectrum cable service or should have under New York City’s franchise agreement.

Based on the latest list of invalid addresses rejected by the PSC, thousands are located in rural upstate New York. Charter is the biggest cable operator in every part of New York State except Long Island, and a few New York City boroughs where Altice’s Cablevision is the dominant provider. Some parts of rural New York are served by independent cable operators or co-ops, and 1,726 addresses Charter listed as “newly passed” were declared invalid after the PSC discovered they were already served by Charter/Spectrum or another provider. The agreement required Charter not to count areas where New York State paid taxpayer dollars to subsidize rural broadband expansion from other providers like telephone companies.

If Charter is unable to provide evidence refuting the PSC’s findings by May 9, 2018, the PSC will fine Charter $1 million. The company was required to maintain a $12 million line of credit after its earlier lapses that can be drawn upon by New York State to efficiently collect fines and penalties.

Stop the Cap! filed a recommendation with the PSC in April that it impose new sanctions against Charter if it is once again found deficient in meeting its commitments. Specifically, the group recommended the PSC impose a requirement that Charter further expand its network to reach as many New York homes and businesses reasonably within reach that have recently been assigned to receive satellite internet access. More than 70,000 rural New Yorkers were disappointed to learn they would not receive promised broadband service from a wired broadband provider because no companies bid to serve these potential customers.

“Compelling Charter to broaden its reach by as few as three miles beyond where it stands today could bring a number of upstate New York residents their only practical chance of getting true broadband service,” said Phillip Dampier, Stop the Cap!’s founder and president. “Fines punish bad behavior but don’t bring anyone broadband service. We’d prefer they be required to spend that money and more on helping erase New York’s urban-rural digital divide once and for all. Satellite internet is an unacceptable solution for all but a small number of these broadband-stranded New Yorkers.”

Cuomo

New York Governor Andrew Cuomo chimed in on Wednesday through his press secretary, criticizing Charter’s alleged bad behavior.

“The State approved Spectrum’s acquisition and its ability to operate in New York based on the fulfillment of certain obligations, including providing broadband access to underserved parts of the state and preserving a qualified workforce,” said Dani Lever, press secretary to Gov. Andrew M. Cuomo. “The governor believes it is essential that corporations doing business with the state uphold their commitments, and we will not tolerate abusive corporate practices or a failure to deliver service to the people. Large and powerful companies will be held to the same standard as all other businesses in New York. The Spectrum franchise is not a matter of right, but is a license with legal obligations and if those are not fulfilled, that license should be revoked.”

In response, Charter strongly denies the allegations and claims it not only isn’t guilty of overcounting new rural passings, it is actually delivering rural broadband expansion ahead of schedule.

“Charter is bringing more broadband to more people across New York state,” the company said in a statement. “We exceeded our last build-out commitment by thousands of homes and businesses.  We’ve also raised our speeds to deliver faster broadband statewide. We are in full compliance with our merger order and the New York City franchise.”

The original 2016 merger approval agreement called on Charter to expand its Spectrum cable service (formerly known as Time Warner Cable) to an additional 145,000 New York locations over four years. Charter’s standing with the PSC was quickly called into question when the company broke its commitment to reach the first 36,250 properties no later than May, 2017.

“It should have been clear to Charter its buildout schedule and commitment was in serious trouble by Thanksgiving of 2016 — just months after completing its $56 billion buyout of Time Warner Cable, when it reported it had achieved only 7,265 new service passings so far,” said Dampier. “By the deadline, Charter only managed to reach 15,164 newly served properties, less than half what it promised. Now the company claims it is overachieving its commitments, but is it fudging the numbers?”

John Rhodes, chairman of the PSC, seems to think so.

When the department’s staff went out on road trips to audit some of Charter’s claimed “new passings,” it discovered troubling evidence that “many of these claimed newly completed passings actually consisted of cable and equipment upgrades to existing cable plant. In other words, Charter replaced older cabling and equipment on a pole with newer cabling and equipment, but the location had already been passed by the cable network, oftentimes having been originally passed with cable [service] for years,” according to Rhodes.

The PSC did not surprise Charter with the results of its audits at the last minute either. New York’s PSC notified it had started actively auditing Charter’s claimed passings as early as January, 2017. Each month, staff members sent the results of those audits to Charter, showing exactly what properties appeared not to be in compliance with the approval agreement.

Rhodes

The audit was comprehensive, according to Rhodes:

DPS Staff’s audit process involved field inspections of targeted address locations identified by Charter as completed. Department Staff used GPS and other mapping tools to identify addresses, cross roads, and landmarks in the periphery of the target inspection addresses. When an address was positively identified, DPS Staff made observations at the claimed completed location to determine if cable network (either aerial or underground) was present, and if so, was the cable newer or older vintage, and whether or not cable was already present and passing the location prior to January 2016. Amongst other things, Field Inspectors made visual observations of cabling, electronics, power supplies, connectors, cable shrink tubing and related attachments for overall condition, including signs of wear, corrosion, and discoloration that would associate weathering and age of the outside plant facilities. Department Staff also looked for noticeable recent additions of cable tags, subscriber drops, as well as the attachment conditions of other pole attachers to help determine if there had been any recent physical moves or changes to the facilities. Further, DPS Staff made visual observations of the foliage and vegetation in the periphery of the communications space, looking for signs of recent trimming or other activity that might indicate outside plant work activity.

The final straw may have been Charter’s December, 2017 buildout list, which included 42,889 claimed new passings. PSC staffers audited 6,389 addresses in upstate New York, revealing disturbingly low verified compliance with the expansion agreement. Of those upstate addresses, Rhodes’ report claims 465 audits were unverifiable or undetermined, 1,726 were recommended for disqualification because there was pre-existing cable service at those locations, and another 1,597 addresses were apparently duplicates from previous quarterly Charter buildout lists the company may have attempted to count twice.

Charter’s most recent settlement agreement set a schedule for rural broadband expansion, with deadlines, benchmarks, and substantial fines for missing either:

  • 36,771 properties by Dec. 16, 2017;
  • 58,417 by May 18, 2018;
  • 80,063 by Dec. 16, 2018;
  • 101,708 by May 18, 2019;
  • 123,354 by Nov. 16, 2019;
  • 145,000 by May 18, 2020.

N.Y. Governor Reneges on 100% Broadband Promise, Offers Satellite to 72k New Yorkers Instead

Gov. Andrew Cuomo announcing rural broadband initiatives in New York.

It was called “Broadband for All” — New York Governor Andrew Cuomo’s commitment to bring high-speed internet service to every New York State resident. But it now appears the governor will break that promise and leave more than 72,000 rural New York residents with satellite-delivered internet that does not come close to meeting the broadband speed standard and is infamous for customer frustration, slow speeds, and low data caps.

Ensuring High-Speed Internet Access for Every New Yorker

In today’s world, internet connectivity is no longer a luxury—it is a necessity. Broadband is as vital a resource as running water and electricity to New York’s communities and is absolutely critical to the future of our economy, education, and safety.

In 2015, Governor Cuomo made the largest and most ambitious state broadband investment in the nation, $500 million, to achieve statewide broadband access by 2018. 

The New NY Broadband Program sets as its goal access to speeds of 100 Mbps for all New Yorkers, with 25 Mbps acceptable in the most remote and rural areas. The cost must not exceed $60 and there is a general prohibition of data caps. This goal exceeds requirements of the FCC’s Connect America Fund program and requires that projects be completed on a more accelerated timeline.

Today, the governor announced the state grant winners to split $209.7 million in the third and final round of awards to offer 122,285 additional homes, businesses, and institutions broadband internet service.

“These latest awards through Round III of the New NY Broadband Program will close the final gap and bring high-speed broadband to all New Yorkers in every corner of the state,” the governor’s office claimed.

Except it won’t.

Tucked in among the grant award winners is a $14,889,249 grant to Hughes Network Systems, LLC, targeting 72,163 rural New Yorkers, more than half of the total number of customers to be reached in the third round. Hughes operates the HughesNet satellite internet service, a technology derisively known as “satellite fraudband” for routinely failing to meet its advertised speed claims. It’s also known as “last resort internet” because it is slow, expensive, and heavily data capped.

Complaints about HughesNet are common on websites like Consumer Affairs:

“Extreme false advertising. Over the first 30 days with HughesNet Gen5, I averaged 3 Mbps download when advertised 25 Mbps. I canceled when they couldn’t answer why I used 20 GB of data in less than 24 hours. I am a 55 year old average internet user. No streaming. No music. No videos (YouTube). DO NOT GET THIS SERVICE EVEN IF NO OTHERS ARE AVAILABLE.” — Dennis, Tazewell, Tenn. (1/25/2018)

HughesNet claims high speed internet in our region. Clearly not available here, 3 service calls, with exchange of equipment, 50 calls – recorded leaves us no choice, we demand that this contract be null/void without stealing $399 cancellation. A despicable Company, uninformed customer service, average speeds with a video; upload speed 0.62 Mbps, the download speed is 1.28 Mbps. Help!!!” — Jeffrey, Kerhonkson, NY (1/21/2018)

“Promised speeds of no less than 25 Mbps. Actual speed received was 5-9 Mbps. Unable to stream anything. Computer programs did not operate and did not update as required. We have cancelled HughesNet at great cost to us. Worst internet service ever.” — Jennifer, Hartsville, SC (1/12/2018)

Pat (last name withheld) lives 1.3 miles from the nearest Charter Communications customer in Niagara County, near Niagara Falls and is very disappointed with recent developments. Charter has quoted an installation fee of $50,000 to extend their cable service and Verizon has refused to provide DSL service, leaving Pat resorting to using an AT&T mobile data plan, which is expensive and gets throttled after using more than ~22 GB a month.

“This was a scam from Jump Street,” Pat said. “Phase 3 has 70,000 out of 120,000 homes getting satellite internet, a technology that was already available. It also gives $70 million to Verizon who declined funds in first place. Five years and $675 million later and still no internet for my kids.”

“This is a huge disappointment for us,” Pat added. “We were counting on this happening. Told numerous times it would. Now we have to debate moving, we can’t continue not having internet. My oldest son just graduated high school never having internet at home.”

“I have written and spoke with New York Broadband Program Office and it was clear to me from the beginning they didn’t understand the problems they faced, namely infrastructure costs,” said Pat. “They didn’t want to hear it. They wrongly assumed that telecoms would bid and everyone would have internet. I knew when announcements were delayed that the bids for last mile didn’t come in. Tragic really. I think they made a mistake accepting that money from the FCC. Satellite was never on the table until that happened.”

Stop the Cap! readers have told us satellite internet is the worst possible option for internet access, and many have reported better results relying on their mobile phone’s data plan. But New York’s solution for more than 70,000 of its rural citizens — many that believed the governor’s commitment of 100% coverage — is to saddle them with satellite internet access starting at $49.99 a month for a paltry 10 GB of usage per month. The top plan on offer costs $99.99 a month and is capped at 50 GB a month before a speed throttle kicks in and reduces speeds to dial-up levels. A 24-month contract is required with a very steep early cancellation penalty.

Another surprising winner is Verizon Communications, a company that originally refused to participate in rural broadband expansion efforts. Verizon will accept more than $70 million to expand its broadband service to 15,515 homes, businesses, and institutions in the Capital Region, central New York, the North Country, and Southern Tier. At press time, it is not known if Verizon will bring FiOS or DSL to these customers.

Because New York State relied on private companies to bid to cover unserved residents, it seems clear HughesNet is the default choice for those New Yorkers stranded without a telecom company bidder. Although that will allow Gov. Cuomo to claim his program reaches 99.99% of New Yorkers, the rural broadband problem remains unresolved for those who were depending the most on New York to help bring broadband to rural farms, homes in the smallest communities, and those simply unlucky enough to live in small neighborhoods deemed unprofitable to serve.

Erie County Executive Blasts Bad Internet Access for Harming Western N.Y. Economy

Western New York

In a recent survey of 2,000 residents living in Erie County (Buffalo), N.Y., it was clear almost nobody trusts their internet service provider, and 71% were dissatisfied with their internet service.

Seventeen years after many western New York residents heard the word “broadband” for the first time at a 2000 CNN town hall at the University of Buffalo, where then U.S. Senate candidate Hillary Rodham Clinton called for increased federal funding for high-speed internet, many upstate residents are still waiting for faster access.

The Buffalo News featured two stories about the current state of the internet in western New York and found it lacking.

Erie County Executive Mark C. Poloncarz blames internet service providers for serving up mediocre broadband, and no service at all in some parts of the county he represents.

“It’s been put in the hands of the private sector, and the private sector has, for whatever reason, elected to not expand into particular areas or not increase speeds in particular areas, putting those areas behind the eight ball,” he said.

Poloncarz effectively fingers the three dominant internet providers serving upstate New York – phone companies Verizon and Frontier and cable company Charter/Spectrum. He argues that companies will not even consider locating operations in areas lacking the most modern high-speed broadband. The digital economy is essential to help the recovery of western New York cities affected by the loss of manufacturing jobs and the ongoing departure of residents to other states.

Poloncarz

An important part of Gov. Andrew Cuomo’s statewide broadband improvement initiative is prodding Charter Communications and its predecessor Time Warner Cable to do a better job offering faster internet speeds and more rural broadband expansion. The New York Public Service Commission, as part of its approval of Charter’s acquisition of Time Warner Cable, extracted more concessions from the cable giant than any other state. Among them is a commitment to expand the cable company’s footprint into adjacent unserved areas by 2020 to reach at least 145,000 homes and businesses now outside of Charter’s service area.

Last week, the cable company told the PSC it was ahead of schedule on its expansion commitment, now reaching 42,889 additional households and businesses, which is above its goal of 36,771. It has two years left to add at least another 102,111 buildings.

Charter also recently increased broadband speeds to 100 Mbps for 99% of its customers in New York and has committed to boosting those speeds to 300 Mbps by the end of next year.

But where Charter does not provide service, broadband problems come courtesy of western New York’s biggest phone companies – Verizon and Frontier. In Erie County, a broadband census found a lack of service in parts of South Buffalo, the far West Side and East Side of Buffalo, as well as in parts of every town in the county except in the prosperous communities of West Seneca and Orchard Park. Verizon FiOS can be found in a handful of well-to-do Buffalo suburban towns, but not in the city itself or in rural parts of the region.

Verizon spokesman Chris McCann said the company had no further plans to expand FiOS service in upstate New York, and stopped announcing additional expansions in 2010. In the rest of its service area, Verizon supplies DSL service as an afterthought, and has made no significant investments to improve or expand service. Frontier Communications, which is the dominant phone company in the greater Rochester region, also provides service in some other rural western New York communities, but its DSL service rarely meets the FCC’s minimum speed definition to qualify as  broadband.

Rep. Collins

Both phone companies have no plans for significant fiber optic upgrades that would boost internet speeds. There is little pressure on either company to begin costly upgrades. In rural communities, both companies lack cable competition and in more urban areas, both have written off their ongoing customer losses to their cable competitor. That leaves towns like North Collins in a real dilemma. Poloncarz told the newspaper residents frequently park in the town library parking lot at night to connect to the library’s Wi-Fi service, because they lack internet service at home.

A political divide has opened up between area Democrats and Republican officials on how to solve the rural broadband problem. Democrats like Poloncarz are exploring solving the rural internet problem with a county-owned fiber network that would be open to all private ISPs to assist them in expanding service. He is joined by Erie County legislator Patrick Burke, who thinks it is time to spend the estimated $16.3 million it will take to build an “open access network” across Erie County.

“There are literally geographic dead zones, and it’s unnecessary,” said Burke, a Buffalo Democrat. “There’s no excuse.”

Poloncarz is more cautious and told the newspaper he will only propose the idea if he is convinced it will solve the problem, but is willing to continue studying it.

Republicans from the western New York congressional delegation believe deregulation and other incentives may give private companies enough reasons to begin upgrades and expansion.

Rep. Chris Collins, a Clarence-area congressman with close ties to the Trump White House, defended FCC Chairman Ajit Pai’s recent decision to eliminate net neutrality. Pai was born in Buffalo.

Collins argues net neutrality only raised the cost of business for ISPs, and being rid of it would inspire cable and phone companies to boost investment in 105 exurban and rural towns in his district, which covers eight counties and extends from the Buffalo suburbs east to Canandaigua, 80 miles away. More than 65% of those areas are under-served because DSL is often the only choice, and at least 3.3% had no internet options at all.

Rep. Tom Reed (R-Corning) has just as many internet dead zones in his district, if not more. Reed represents the Southern Tier region of western New York in a district that runs along the Pennsylvania border from the westernmost part of New York east nearly to Binghamton. Much of recent broadband development in this part of New York comes as a result of Gov. Cuomo’s state-funded broadband expansion initiative, not private investment.

Reed has a record in Congress that is better at explaining the rural broadband dilemma than solving it.

“In a rural district, there are areas that are just physically difficult to serve,” Reed shrugged.

Collins’ hope that the banishment of net neutrality will inspire Frontier, Verizon, and Charter to use their own money to expand into the frontiers of western New York seems unlikely. Gov. Cuomo’s plan, which uses public funds to help subsidize mostly private companies to expand into areas where Return On Investment fails to meet their metrics has had more success.

But the rural broadband debate has been accompanied by a fierce pushback among upstate New Yorkers against the Republican-controlled FCC and elected officials like Collins who support the recent gutting of net neutrality. A backlash has developed in his district, and some have accused Collins of aiding and abetting a corporate takeover of the internet.

“The hysteria and narrative that this will kill the internet is blatantly false,” responded Collins. “Internet service providers have said they do not increase speeds for certain websites over others, and I have signed onto legislation that would make such a practice illegal.”

Defenders of FCC’s Ajit Pai Miss the Point on Cutting Broadband Speed Standards

Defenders of FCC Chairman Ajit Pai are rushing to defend the Republican majority’s likely support for an initiative to roll back the FCC’s 25/3Mbps speed standard embraced by his predecessor, Thomas Wheeler.

Johnny Kampis, writing for Watchdog.org, claims that broadband speed standard has had an adverse affect on solving America’s rural broadband gap.

After raising that standard, suddenly those areas with speeds below 10 mbps were lumped into the same group with those who could access speeds of 10-25 mbps, resulting in diminished focus on those areas where the broadband gap cut the deepest.

Raising the standard meant, too, that fans of big government could point to the suddenly higher percentage of the population that was “underserved” on internet speeds and call for more taxpayer money to solve that “problem.”

Kampis is relying on the talking points from the broadband industry, which also happens to support the same ideological interests of Watchdog.org’s benefactor, the corporate/foundation-funded Franklin Center for Government & Public Integrity. The argument suggests that if you raise broadband standards, that opens the door to more communities to claim they too are presently underserved, which then would qualify them for government-funded broadband improvements.

Kampis’ piece, like many of those published on Watchdog.org, distorts reality with suggestions that communities with 50Mbps broadband service will now be ripe for government handouts. He depends on an unnamed source from an article written on Townhall.com and also quotes the CEO of Freedom Foundation of Minnesota, which is closely associated with the same Franklin Center that hosts Watchdog.org. Kampis’ piece relies on sourcing that is directly tied to the organization hosting his article.

In reality, rural broadband funding has several mechanisms in place which heavily favor unserved, rural areas, not communities that already have 50Mbps internet access. ISPs also routinely object to projects proposed within their existing service areas, declaring them already served, and much of the funding doled out by the Connect America Fund (CAF) Kampis suggests is a government handout are being given to telephone companies, not municipalities.

Kampis

Kampis is satisfied free market capitalism will eventually solve the rural broadband problem, despite two decades of lackluster or non-existent service in areas deemed unprofitable to serve.

“So while Pai’s critics denigrate him because his FCC is considering lowering that broadband standard, he’s just correcting an earlier mistake, with the realization that the free market, not big government, will solve the rural broadband gap if given enough time,” Kampis writes. “And returning to the old standards will help ensure that the focus will be placed squarely on the areas that need the most help.”

Kampis suggests that free market solution might be 5G wireless broadband, which can potentially serve rural populations less expensively than traditional wired broadband service. Communities only need wait another 5-10 years for that to materialize, if it does at all.

Kampis claims to be an investigative reporter, but he didn’t venture too far beyond regurgitating press releases and talking points from big phone companies and opponents of municipal broadband. If he had spent time reviewing correspondence sent to the FCC in response to the question of easing broadband speed standards, he would have discovered the biggest advocates for that are large phone companies and wireless carriers that stand to benefit the most from the change.

Following the money usually delivers a clearer, more fact-based explanation for what motivates players in the broadband industry. In this case, the 25Mbps speed standard has regularly been attacked by phone and wireless companies hoping to tap into government funds to build out their networks. Traditional phone companies are upset that the 25Mbps requirement means their typical rural broadband solution – DSL, usually won’t cut it. Wireless companies have also had a hard time assuring the FCC of consistent 25Mbps speeds, making it difficult for them to qualify for grants. AT&T wasn’t happy with a 10Mbps standard for wireless service either.

Incidentally, these are the same companies that have failed to solve the rural broadband gap all along. Most will continue not serving rural areas unless the government covers part of their costs. AT&T illustrates that with its own fixed wireless rural broadband solution, which came about grudgingly with the availability of CAF funding.

The dark money ATM network hides corporate contributions funneled into advocacy groups.

The free market broadband solution is rooted in meeting Return On Investment metrics. In short, if a home costs more to serve that a company can recoup in a short amount of time, that home will not be served unless either the homeowner or someone else covers the costs of providing the service. By wiping out the Obama Administration’s FCC speed standard, more ratepayer dollars will be directed to phone and wireless companies that will build less expensive and less-capable DSL and wireless networks instead of investing in more modern technology like fiber optics.

Mr. Kampis, and others, through their advocacy, claim their motive is a reduction in government waste. But in reality, and not by coincidence, their brand of journalism hoodwinks readers into advocating against their best interests of getting fast, future-proofed broadband, and instead hand more money to companies like AT&T. The Franklin Center refuses to reveal its donor list, of course, but SourceWatch reported the Center is heavily dependent on funding from DonorsTrust, which cloaks the identity of its corporate donors. Mother Jones went further and called it “a dark money ATM.”

Companies like AT&T didn’t end up this lucky by accident. It donates to dark money groups that fund various sock puppet and astroturf operations that avoid revealing where the money comes from, while the groups get to claim they are advocating for taxpayers. By no coincidence, these groups frequently don’t attack corporate welfare, especially if the recipient is also a donor.

New York’s rural broadband initiative is on track to deliver near 100% broadband coverage to all New York homes and has speed requirements and a ban on hard data caps.

Raising speed standards does not harm rural broadband expansion. In New York, Gov. Andrew Cuomo’s broadband expansion campaign is on track to reach the remaining 150,000 homes still without broadband access by sometime next year. His program relies on broadband expansion funding that comes with requirements that insist providers offer internet access capable of at least 25Mbps (with a preference for 100Mbps) for $60 or less and a ban on hard usage caps. Kampis claims the 25Mbps speed standard hampers progress, yet New York is the first state in the nation moving towards 100% broadband availability for its residents at that speed or better.

Chairman Pai’s solution is little more than a gift to the country’s largest phone and wireless companies that would like to capture more CAF money for themselves while delivering the least amount of service possible (and keep money out of the hands of municipalities that want to build their own more capable networks). The evidence is quite clear — relying on the same companies that have allowed the rural broadband crisis to continue for more than 20 years is a stupendously bad idea that only sounds brilliant after some corporation writes a large check.

Gov. Cuomo, NYC Mayor de Blasio Join Striking Charter Workers After 6-Month Impasse

Phillip Dampier September 20, 2017 Charter Spectrum, Consumer News, Public Policy & Gov't, Video 1 Comment

Gov. Cuomo speaking at rally in support of striking Charter/Spectrum workers. (Image courtesy: IBEW Local 3)

New York Gov. Andrew Cuomo and New York City Mayor Bill de Blasio joined thousands of union workers in Brooklyn and Manhattan on Monday to support the workers’ six-month impasse with Charter Communications.

“We do not accept a greedy corporation trying to undercut the most basic rights of working people,” Mayor de Blasio said in Manhattan, referring to Charter and its CEO Thomas Rutledge, the country’s highest paid executive in 2016, earning $98 million.

“We’re going to demand respect for the blood and sweat of the workforce,” Cuomo said in a speech to workers at Brooklyn’s Cadman Plaza Park, on the other side of the Brooklyn Bridge. The rally was attended by Charter strikers and several unions in solidarity with the cable company workers.

Nearly 1,800 Charter employees belonging to the International Brotherhood of Electrical Workers (Local 3), walked out in late March after Charter sought to kill their pension plan and move them to a less generous health care plan. They have been on strike ever since, with no sign of progress towards ending the action.

“Screwing over workers and customers seems to be a hallmark of Charter Communications’ business model,” AFL-CIO president Richard Trumka said in an earlier statement. “Charter has disrespected workers in New York who remain on strike fighting for the freedom to negotiate together to maintain their pensions and health benefits. They also continue to disregard their customers’ needs by hiking rates while providing sub par service. This is not the way to run a company, and we support all the working people standing up to these corporate bullies.”

“Charter is offering Local 3 a generous compensation package that includes an average 22-percent wage increase — some employees up to a 55-percent wage increase — and comprehensive retirement and health benefits, including a 401(k) that provides a dollar-for-dollar match up to 6 percent of eligible pay,” counters Charter spokesman John Bonomo.

Spectrum customers in Manhattan, parts of Brooklyn, and Queens are decidedly caught in the middle, enduring more than 130 outages — some taking out service for hours, as a result of alleged repeated vandalism the company suspects is caused by striking workers. But the union notes Charter’s replacement workers are often unqualified, some taking hours to manage repairs that would “take us 10 minutes.” When Charter doesn’t have enough workers on hand to manage a repair, they call in third-party contractors. Some of them were on hand to deal with fiber optic cable cuts that took out Spectrum service for tens of thousands of customers, often in Queens and Brooklyn.

A June outage lasted almost an entire day after contractors took more than 16 hours trying to splice a cut fiber cable. Police sources blamed the striking workers.

“We would never condone that,” on-strike Spectrum technician Ray Reyes told WCBS. “We would never do that.”

A Charter employee picketing a Spectrum store.

Before the strike, Charter claims there have been only five fiber-related service outages in the last few years. Since the strike began, the company claims it has experienced 137 outages it attributed primarily to vandals. Some customers and small business owners are losing whatever sympathy they had for the striking workers.

Restaurant manager Samantha Phe has to turn away customers using credit cards every time her Spectrum internet service goes down and she is tired of being in the middle of a labor dispute.

“I think that’s a little unfair to the community,” Phe told the TV station. “Say if your company isn’t doing well for you, you’re trying to punish someone else who didn’t do anything to you.”

Many reporters in New York are barely hiding their disdain for the union and strikers, presumably because they have been affected by repeated outages as well. WCBS political reporter Marcia Kramer avoided talking to union workers in a recent report, but shouted questions to the mayor about what he feels about cable outages. She also talked to small business owners upset about the service outages.

Business owner Anthony Velez was emblematic of the level of frustration being experienced by Spectrum customers enduring repeated outages:

Velez owns Bagriculture, which was unable to conduct business when the service went out. He was also unable to access his security system, and he is furious that Cuomo and de Blasio are supporting the workers and ignoring his plight.

“I don’t think that shows the right ethics that we would look for in our mayor, or a governor,” he said.

He said politicians treat business owners as “little invisible people.”

“I don’t think there’s a lot of people who care about small business owners,” Velez said.

But not all reporters are siding with Charter.

In response to a statement from Charter blaming an outage in mid-September on “the latest round of criminal destruction of our network,” Select/All reporter Jake Swearingen asked, “Why do they always attack the aging internet infrastructure that’s been systematically underfunded for years in order to line shareholders’ pockets!

WCBS-TV political reporter Marcia Kramer took some heat over her alleged pro-Charter positions in this story about the rally. (1:36)

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