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Time Running Out on New England Cable/Phone Customers Seeking Storm-Related Credits

Phillip Dampier November 29, 2011 AT&T, Cablevision (see Altice USA), Charter Spectrum, Comcast/Xfinity, Consumer News, Cox, Dish Network, Public Policy & Gov't, Video Comments Off on Time Running Out on New England Cable/Phone Customers Seeking Storm-Related Credits

Storm damage in eastern Massachusetts. (Courtesy: WGBH Boston)

The northeastern United States got more than its fair share of severe storms these past few months.  Remnants of Hurricane Irene caused severe flooding, heavy rainstorms that followed didn’t help.  But one of the worst of all was the Halloween Nor’easter that left serious wind damage in some areas, heavy snowfall in others, leaving customers without power, phone, cable, and broadband service for days, if not weeks.

Telecommunications companies including Cablevision, Charter Communications, Comcast, Cox Communications, Dish Network, Time Warner Cable, and Metrocast Communications of Connecticut are under fire across the region for not providing automatic service credits for impacted customers.  Charter and Comcast are both facing a class action lawsuit filed last week by a Massachusetts law firm that accuses the cable operators of “gouging” their customers by not automatically crediting affected subscribers for lost service.

Jeffrey Morneau of Springfield, Mass. law firm Connor, Morneau & Olin says up to 1.2 million Charter and Comcast customers were without service, but the companies will only provide credits on a case-by-case basis, and only if customers request them within a short time after the outage occurred.

“If you pay for a service and you don’t get it, the company can’t keep your money,” Morneau said.

Stop the Cap! readers in Massachusetts and New Hampshire report Comcast will grant reasonable service credit requests, assuming you get through to ask for them.

“Hold times are epic,” reports Tom Turlin, a Comcast customer in Massachusetts.  “I managed to get my credit by using their web contact form instead.”

Most providers require consumers to request credits for outages within 30-60 days of the service interruption, and time is running out for Nor’easter credits.

“Most people think they will only get 50 cents back so why bother, but actually with today’s huge cable bills, credits can be substantial,” Turlin says. “I received almost $15 back on my bill.”

Only AT&T, Connecticut’s largest phone company, agreed to automatically credit customers the company determined were without service for at least 24 hours.  Customers who don’t receive credit automatically can appeal to the company for credit they believe they are entitled to receive.

Here’s how different companies are responding:

AT&T: “We will give U-verse TV customers in Connecticut who experience a service outage for longer than 24 hours a pro-rated credit,” AT&T said. “In addition, we will voluntarily give similar credits for U-verse Voice and U-verse High Speed Internet service customers who experienced a service outage for longer than 24 hours. Customers are not required to take any action: the credits will be applied automatically on the customer bill for impacted customers within the next several billing cycles.”

Cablevision: “While state law provides for consumer credits for qualifying outages for cable service only, Cablevision has been providing a credit to customers on an individualized basis for all their services,” Cablevision said. “Customers will be credited when they notify us that they had a service outage. We are extending our normal period to request refunds to 45 days from the date of the storm.”

Charter: Customers must call or visit the cable company offices in person to request service credit.  “We are providing credit to customers for the entire time they were without service, from the time they lost power to the time their Charter services were fully restored, and we are providing credit for all services,” Charter said.

Comcast: “In order to receive a credit, a customer must contact Comcast and identify the time period during which they did not have access to Comcast services,” Comcast said.

Cox: “We need our customers to call us after their service is restored to report that they were without Cox services, and for how long,” Cox said. “We then credit their accounts from the time of the service outage until service was actually restored.”

DISH Network: The satellite provider is waiving service and equipment fees for consumers who need their equipment realigned, reinstalled or repaired due to the storm. “DISH subscribers who indicated that they were without service due to the storm were provided a credit for their time without service,” DISH said. “In addition, DISH subscribers who needed to suspend their service due to storm damage were allowed to do so at no charge.”

MetroCast Communications of Connecticut: It will provide customers with a refund on their next invoice after contacting the company. “The credit equals a prorated amount of the affected customer’s monthly charges for all MetroCast services, calculated based on the number of days during which such services were interrupted, and are included in the customer’s next invoice,” MetroCast said.

Time Warner Cable: Customers must contact the cable company online, by e-mail or phone and request credit for the number of days they were without service.  Most service credit requests that can be verified are granted within hours, and will appear on the next billing statement.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/WSHM Springfield City councilor Comcast disagree on cable rebates 11-21-11.mp4[/flv]

WSHM in Springfield covers the ongoing dispute city officials have with Comcast, who is refusing to automatically provide storm credits to customers impacted by the October Nor’easter.  (2 minutes)

FCC Chairman Calls AT&T CEO Personally to Deliver His Opposition to Merger Deal

Phillip Dampier November 28, 2011 AT&T, Competition, Public Policy & Gov't, T-Mobile, Video, Wireless Broadband Comments Off on FCC Chairman Calls AT&T CEO Personally to Deliver His Opposition to Merger Deal

Federal Communications Commission chairman Julius Genachowski personally called AT&T CEO Randall Stephenson a few days before Thanksgiving giving him advance notice he was moving to oppose AT&T’s merger with Deutsche Telekom’s T-Mobile USA.

Genachowski told Stephenson he was handing AT&T’s merger application over to an administrative judge — extremely bad news for the merger’s prospects.  The personal phone call was revealed Friday by AT&T, which disclosed it in an ex-parte communication filed with the FCC.

“During the call, Chairman (Julius) Genachowski indicated that he would be circulating to his fellow Commissioners a draft order approving the Qualcomm transaction and a draft order designating the T-Mobile transaction for an administrative hearing,” according to the filing. “Chairman Genachowski indicated that the draft designation order would likely be voted in the next several days or weeks but the administrative hearing would be deferred until after resolution of the pending litigation with the Department of Justice.”

It was the second piece of bad news received by AT&T last week, the first being notification the Justice Department had suddenly canceled a meeting it had planned to hold with AT&T about the merger and its antitrust implications.

Earlier today, Bloomberg News reported the FCC wasn’t so sure it would allow AT&T to refile its withdrawn merger application, which immediately brought new threats of legal action by the telecommunication company.

Now AT&T is considering a new strategy to save a merger given a 10 percent chance of succeeding, according to some analysts.  It will likely hold a fire sale of T-Mobile’s assets — up to 40 percent of them to be more exact, in order to satisfy regulators concerned about the merger’s anti-competitive implications.

The prospects make Wall Street bankers salivate with dreams of steep fees earned from structuring and marketing the equivalent of a corporate estate sale.

Among potential buyers might be regional players Leap Wireless, which owns Cricket, and MetroPCS.  The New York Times reports Mexico’s multi-billionaire Carlos Slim Helú, who owns Mexico’s América Móvil, might be interested in buying T-Mobile assets himself to boost the company’s American unit, better known as TracFone.

Sanford Bernstein’s Craig Moffett suggests it would be a mistake to ignore America’s largest cable operators, which own spectrum themselves and could integrate T-Mobile into a new mobile operator owned, controlled, and branded under the names of their respective cable owners.

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/Bloomberg Davis Says ATT Asset Sale May Be Tricky 11-28-11.flv[/flv]

Michael Nelson, analyst at Mizuho Securities USA Inc., and Jeffrey Davis, chief investment officer at Lee Munder Capital Group, discuss AT&T Inc.’s proposed purchase of T-Mobile USA Inc. AT&T, with its T-Mobile USA takeover facing regulatory opposition, is preparing the biggest remedy proposal yet to the Justice Department to salvage the $39 billion deal, according to a person familiar with the plan: an asset fire sale. From Bloomberg News.  (4 minutes)

Jon Friedman’s Love-Hate Relationship With iPhone on AT&T

Phillip Dampier November 28, 2011 AT&T, Consumer News, Video, Wireless Broadband Comments Off on Jon Friedman’s Love-Hate Relationship With iPhone on AT&T

If your call doesn't get dropped....

Marketwatch columnist Jon Friedman has a l0ve-hate relationship with his Apple iPhone, with plenty of love for the phone, but “undependable” service from AT&T.

Friedman is another New Yorker that copes with daily frustration from his provider, which is notorious for dropping calls and a loss of service, even on the island of Manhattan.

“AT&T is not easy to work with,” Friedman reports:

I happened to be on the Upper West Side of Manhattan on Saturday afternoon, desperately trying to make a call to someone no more than 20 city blocks away. I tried and tried and tried. Out of luck and patience, I schlepped to a Radio Shack store and begged for help.

The salesman at Radio Shack asked me what service I used, and then he cackled when I said it was AT&T. By the time I got across town, 30 minutes later, I was able to complete my call.

Friedman is considering taking his business to another wireless carrier, if only to stop the hair-tearing experience of making and receiving calls on AT&T’s wireless network in the metropolitan New York region.

[flv width=”512″ height=”308″]http://www.phillipdampier.com/video/WSJ Jon Friedman’s Love-Hate Relationship 11-23-11.flv[/flv]

Jon Friedman talks with the Wall Street Journal’s Mean Street feature about his experience with an Apple iPhone on AT&T’s network.  (4 minutes)

Special Video Coverage: AT&T/T-Mobile Merger Falling Apart; Where Does It Go From Here?

Here is a collection of news clips about the AT&T T-Mobile merger deal as news broke over Thanksgiving that AT&T had withdrawn its application with the Federal Communications Commission to proceed with the merger.

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/WSJ ATT T-Mobile Collapsing Deal Impacts Deutsche Telekom 11-25-11.flv[/flv]

The Wall Street Journal offers two reports today about the surprise news that AT&T was pulling its merger application from the FCC.  The newspaper wonders how the deal collapse will impact Deutsche Telekom, the German parent of T-Mobile USA, which has shown every indication it wants out of the U.S. market to focus on its telecommunications interests in Europe.  (7 minutes)

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Bloomberg ATT to Record 4B Costs on T-Mobile USA Deal Risks 11-25-11.flv[/flv]

AT&T Inc., whose $39 billion bid for T-Mobile USA is challenged by the U.S. Justice Department, will record one-time costs of $4 billion this quarter to reflect the risks of a collapse of the deal. AT&T and T-Mobile owner Deutsche Telekom AG withdrew their applications to the U.S. Federal Communications Commission yesterday after FCC Chairman Julius Genachowski on Nov. 22 asked fellow commissioners to send the proposed purchase to a hearing, signaling an attempt to block the deal. Lizzie O’Leary reports on Bloomberg Television’s “InsideTrack.”  (2 minutes)

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Bloomberg ATT Decision to Withdraw T-Mobile FCC Application 11-25-11.flv[/flv]

Jennifer Fritzsche, an analyst at Wells Fargo Securities LLC, talks about AT&T Inc.’s decision to withdraw its Federal Communications Commission application to acquire T-Mobile USA Inc. from Deutsche Telekom AG. She’s still slightly optimistic the deal can still succeed, especially if the 2012 elections result in a Republican administration.  She speaks with Betty Liu on Bloomberg Television’s “In the Loop.”  (2 minutes)

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Bloomberg ATTs T-Mobile Takeover FCC Application 11-25-11.flv[/flv]

Paul Gallant, an analyst with Guggenheim Securities LLC, was surprised to see the FCC chairman suddenly take a more aggressive stance against the merger.  Most on Wall Street expected Chairman Genachowski to follow the Justice Dept. lead.  That changed last week when the chairman signaled the FCC would also take a tough look at the deal.  Also, will the news of the withdrawn application benefit Sprint?  Bloomberg News reports.  (3 minutes)

Breaking News: AT&T Withdraws FCC Application to Buy T-Mobile: “The Deal is Over the Cliff”

AT&T executives with dreams of a consolidated wireless marketplace are not having a happy Thanksgiving holiday today as the company quietly released news it is withdrawing its application with the Federal Communications Commission to buy T-Mobile USA from German parent Deutsche Telekom.

“The deal is over the cliff and falling rapidly into the sea,” one unnamed analyst told Bloomberg News this morning.  “The only thing left to do is cut T-Mobile a check for $6 billion in cash and spectrum.”

AT&T’s accountants are evidently preparing to do just that, booking at least $4 billion in “one time costs” this quarter, representing a significant chunk of the breakup fee.  Even as AT&T’s bookkeepers bow to the likely unconsummated marriage with T-Mobile, AT&T’s spin for the media is that the deal is still a go; the company only withdrew the FCC application to fully focus on the Justice Department case against the merger.

Odds-makers on Wall Street don’t buy it.

“What that tells you is AT&T’s auditors have now concluded that the deal is likely to fail and have forced the company to take that charge,” Will Draper, an analyst at Espirito Santo told Bloomberg.

Andrew Schwartzman, policy director of Media Access Project, called the move an “act of desperation.”

T-Mobile executives insist the deal is still on, however. AT&T and Deutsche Telekom plan to renew their attempt to gain FCC approval “as soon as practical,” T-Mobile executives claim. “This doesn’t mean that anything is over,” said Andreas Fuchs, a spokesman for the German company.

One bonus for AT&T: the decision to withdraw the application from the FCC will let AT&T maintain confidentiality of documents filed with the Commission in support of the merger.  An unnamed FCC official has been leaking portions of them to the media all week.  Among the most important revelations: AT&T’s public claims that the merger will create jobs ran headlong into their own internal documents, which guarantee the exact opposite, according to the official.

If AT&T’s merger with T-Mobile is approved, it would create an industry behemoth with 134 million customers, dwarfing current market leader Verizon Wireless.

Draper says the $4-6 billion award to T-Mobile for a merger failure still won’t be enough for the company to upgrade its network.

“They’re still going to have a very, very big problem in the U.S., which is going to cost them maybe $10 billion to fix,” he said.

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