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Rogers Ripoffs: Company Sells Internet Service to Customers Without Computers

Phillip Dampier January 15, 2018 Canada, Consumer News, Public Policy & Gov't, Rogers, Video 2 Comments

A special investigation by the Canadian Broadcasting Corporation found Rogers’ call center employees engaging in high pressure sales tactics, pushing customers to buy products and services they do not need.

In emails and interviews with Go Public, a CBC consumer investigations unit that seeks to hold corporate and government powers accountable, more than a dozen Rogers workers report they’re under “extreme pressure” to hit sales targets or risk termination.

“You’re supposed to look at a customer’s account and sell them cable, home phone, home security, a credit card — whatever is missing,” says an employee who currently works at a large Rogers’ call center in Ottawa and has asked CBC to conceal his identity to avoid retribution in his workplace.

Employees report they are constantly under stress to meet sales quotas, which are not eased even an employee is out sick. Employees know Rogers will terminate call center workers that do not sell enough products to customers, which has created an atmosphere where some desperate workers sign up customers for services they do not understand or cannot use to keep their jobs.

One employee told the CBC he will sign up seniors for internet service, and inform them a technician will come to their home  “to install a modem for their TV,” despite the fact modems are used with internet service, not cable television.

“We’re giving internet service to customers who actually do not have a computer,” he says.

The alleged corrupt business practices begin with the first job interview, where ex-employee Jessica Robinson was asked just how strongly committed she was to sell Rogers’ services.

CBC relied on several whistleblowers that are or were employees at Rogers Communications call centers. (Image courtesy of: Christian Patry/CBC)

“When I had my interview … they actually asked me ‘If an elderly lady calls in to cancel her sports package on her TV because her husband just died, are you going to convince her to keep it and add more?'” says Robinson.

Robinson echoed many other employees who told CBC they were expected to sell on every call, no matter the reason. If a customer calls to cancel service or report a service problem, before they get help, they will get a sales pitch.

To keep customers buying, representatives sometimes wrongly claim buying more products will result in a lower bill because of bundling discounts.

“Even customers who have home phone service, I say, ‘How about I add a second line for your home phone and I’ll give you a discount for your other product?’ Which makes no sense,” a representative said.

What the call center workers often don’t tell customers is they are also sneaking other items on to customer bills. The biggest are installation and activation fees for the services being pitched, which often run $25-50.

Customers are sure to call back 1-2 months later when a much higher-than-expected bill arrives, and those call center workers are trained to handle that as well.

That is what happened with Sheldon Nider in 2017 when the 72-year old resident of Richmond, B.C., called to upgrade his phone and inquire about adding a 25% corporate discount he was entitled to receive. After 90 minutes on the phone, a Rogers representative told him he did qualify and also sold him a phone for his granddaughter. The following month, a 17-page bill arrived in the mail. Nider’s bill unexpectedly jumped $135 a month and, just as bad, he did not get the corporate discount he originally called about.

“I think it’s a bait and switch because they bait you with a discount, then switch it and don’t give it to you. It’s as simple as that,” Nider told CBC.

Rogers later admitted in an email message to Nider the sales agent “misinformed” him, but that was all they were willing to do. When Go Public later contacted Rogers, the company grudgingly offered a $360 credit to address other issues, but still refuses to provide the corporate discount or end the expensive term contract he is now stuck with for the next few years. When Nider now calls for an explanation about other mysterious charges on his bill, the representatives seem empathetic, but don’t deliver customer satisfaction.

“They teach us how to be empathetic. To say things like ‘I understand how frustrating that must be,'” Robinson says about customers calling in to complain. “I’m like, why? We’re the ones screwing them over.”

Customers and workers are both left stressed about the insistent sales tactics. Customers don’t appreciate having to fight their way through a sales pitch to get their concerns addressed and employees are constantly worried they will be terminated because many customers either don’t want or cannot afford to add anything else to their bill.

Rogers employees claim their managers are well aware of these tactics and are also the source of much of the pressure. Despite a responsibility to monitor and manage ethical business practices on behalf of Rogers, managers are also rewarded for achieving sales quotas and bend over backwards to protect the most aggressive and unethical employees by avoiding monitoring their calls or questioning their sales.

Rogers sells cable TV, home phone, internet, cell phones, home security and other services. Its banking subsidiary even offers its own credit card.

“Managers know these reps are unethical,” says James Woodward, who worked in a Rogers call center two years ago. “So they try not to listen to those calls.”

Woodward told CBC managers don’t care what you sell as much as what you didn’t.

“I would get five cellphone activations in a day and sell a bunch of cable products, and then my manager would say, ‘No credit card?’ It was always what I didn’t do.”

When a customer calls to drop services or cancel altogether, there is a good chance that call will be dropped, because reducing your bill or closing your account will count against the employee’s sales targets.

“That’s why most customers have to call in three, four, five times to get a problem resolved,” says the employee working at Rogers’ Ottawa call center. “This is normal.”

At the end of each month, employees who fail to meet their targets can be forced to take “performance improvement” courses. If sales numbers still do not improve, they are likely to be terminated.

A Rogers spokesperson told the CBC the company’s sales targets are “achievable” and employees can be terminated for a number of reasons other than missing sales expectations. But Rogers’ Paula Lash added, “While we do not believe the concerns raised represent our values or sales practices, we take them very seriously and we will work with our team to respond to these concerns.”

An Ottawa-based public advocacy group, the Public Interest Advocacy Centre (PIAC) now wants the Canadian Radio-television and Telecommunications Commission (CRTC) to open a public inquiry on the matter. PIAC’s executive director John Lawford says the CBC report exposes a loophole in Canadian regulations, which do not currently cover industry sales practices.

Lawford says these sales tactics, and other similar incidents involving other large Canadian phone and cable companies, appear to directly target seniors, grieving spouses, and the visually impaired community.

“It’s completely appropriate for the CRTC to say, ‘We’re going to set out rules,'” adds Lawford. “I think it’d be quite eye-opening to have an open, public consultation at the CRTC about sales practices of big telecom companies.”

The former and current employees at Rogers who communicated with the CBC about the sales practices offered their own suggestion: “Stop increasing our targets. Stop pressuring us to try to make a sale on every call. And remove these [performance improvement] plans to get you fired.”

CBC-TV’s “The National” reports on Rogers Communications’ pushy sales tactics that sell customers services they don’t want or need. (4:09)

Here Comes the First FAKE Net Neutrality Bill, Courtesy of Rep. Marsha Blackburn (R-AT&T)

Rep. Marsha Blackburn (R-Tennessee, but mostly AT&T and Comcast)

Rep. Marsha Blackburn, who claims to represent the interests of voters in Tennessee but generally prefers the views (and campaign contributions) from AT&T and Comcast, is the first Republican to propose a bait-and-switch “net neutrality” broadband bill she claims will protect a free and open internet, but will actually prohibit net neutrality as America has known it over the last two years.

“No blocking. No throttling. The Open Internet Preservation Act will ensure the internet is a free and open space,” Blackburn tweeted to her followers shortly after giving an exclusive interview introducing her bill to Breitbart News. An early copy was also furnished to TechFreedom, an industry-funded front group that has opposed net neutrality. “This legislation is simple, it provides light-touch regulation so companies can invest and innovate, and make sure our internet is up to 21st century standards.”

Congresswoman Blackburn hopes you will take her word on that and not bother to actually read and understand what her bill actually does to the concept of a free and open internet.

We did read the bill and are prepared to help you understand it.

No overt censorship but plenty of “reasonable network management”

Blackburn’s bill non-controversially forbids the censorship of “lawful content, applications, services, or non-harmful devices.” Virtually every ISP in the country has already volunteered they have no intention of censoring legal content on the internet. But Blackburn’s bill includes a safety clause that allows ISPs to avoid accusations of tinkering with traffic — “reasonable network management,” which in this case is vaguely defined in the bill as “a practice that has a primarily technical network management justification.” Blackburn also defines a network management practice “reasonable” if “it is primarily used for and tailored to achieving a legitimate network management purpose, taking into account the particular network architecture and technology of the broadband internet access service.”

Despite that word salad, there is nothing in her bill that clearly defines what is “legitimate” and what is not. Comcast, for example, has its own view about how it manages and prices traffic on its broadband service. Stream XFINITY content and it does not count against your Comcast cap. Stream Hulu and it does. Comcast claims that is fair if one considers the ‘particular network architecture’ that delivers Comcast’s own content is allegedly different from the public internet. Blackburn’s bill would treat data caps, zero rating, and Comcast’s version of “fairness” as all perfectly legal.

Large telecommunications companies have insisted there is no need to pass laws or enact regulations governing internet censorship because they would never contemplate blocking legal content,  making the need for legislation unnecessary. But they are strongly likely to favor her bill, creating a direct contradiction to their repeated insistence net neutrality was “a solution in search of a problem.” There is a reason for the sudden support among many Republicans for Blackburn’s concept of net neutrality — blocking regulatory agencies from oversight of internet service provider interference and abuse.

The “Specialized Services” Hindenburg-sized loophole

Blackburn’s bill covers all the bases for the telecom industry she routinely supports.

Most importantly, her bill creates an enormous loophole allowing internet service providers to offer “specialized services” to the public any way they choose, as long as they do not “threaten the meaningful availability of broadband internet access service or [offer services] that have been devised or promoted in a manner designed to evade the purposes of this section.”

Blackburn defines a “specialized service” as “services other than broadband internet access service that are offered over the same network as, and that may share network capacity with, broadband internet access service.’’

That effectively means any website, streaming service, cloud storage or app could qualify as a “specialized service.” Blackburn’s bill would allow an ISP to establish paid prioritization (fast lanes) for selected content, usage cap non-preferred content, or steer web users to preferred websites and services. It effectively makes all internet content open to ISP manipulation. Just to be certain ISPs are protected from net neutrality rules for next generation applications and services, her bill also permanently forbids regulatory agencies from expanding the definition of net neutrality.

Obliterating the concept of states’ rights

Republicans are usually strong proponents of limiting the power of the federal government, especially when it comes to preempting state laws, but that concept is turned on its head when Big Telecom campaign contributions are at stake. Blackburn completely abandons any pretense of a state being able to write its own laws governing internet openness by specifically banning that option:

“No State or political subdivision of a State shall adopt, maintain, enforce, or impose or continue in effect any law, rule, regulation, duty, requirement, standard, or other provision having the force and effect of law relating to or with respect to internet openness obligations for provision of broadband internet access service.”

Permanently assuring ISPs easy court victories if net neutrality violations are uncovered

Blackburn’s bill ignores several years of court rulings on net neutrality cases that have called out the flaw of the FCC’s earlier dependence on defining the internet as an “information service” subject to oversight under Section 706 of the 1996 Telecom Act. The courts have ruled this foundation is inadequate to enforce net neutrality. The foundation that has proved adequate and has so-far survived court challenge exists in Title II of the Communications Act, made applicable when the internet was redefined as a common carrier “telecommunications service.” Rep. Blackburn’s bill would return net neutrality enforcement to the same flawed authority courts have already ruled does not apply, neutering net neutrality in the courts.

Critics contend Rep. Blackburn’s real motive is to permanently end oversight of large cable and phone companies and prevent federal agencies from coming to the rescue of content providers and consumers.

“Blackburn’s legislation fails at the very thing it claims to accomplish. It prohibits a few open-internet violations, but opens the door to rampant abuse through paid-prioritization schemes that split the internet into fast lanes for the richest companies and slow lanes for everyone else,” said Craig Aaron, Free Press Action Fund President and CEO. “This bill’s true goal is to let a few unregulated monopolies and duopolies stifle competition and control the future of communications.”

“Congress must reject last week’s FCC ruling and restore Title II authority at the agency,” Aaron added. “The 2015 rules worked extraordinarily well from the get-go, with investment and innovation flourishing across the sector. That’s because they gave the FCC the authority to prevent paid prioritization and other forms of discrimination, while promoting competition, open markets, universal service and equal access.”

Verizon Tells FCC Revealing Big Telecom Merger Details Irrelevant to Net Neutrality Proceeding

Verizon has told the Federal Communications Commission it should reject a bid from a consumer group to release confidential corporate merger information to the public so it can learn what economic incentives, if any, exist to begin charging content providers extra fees for internet fast lanes and zero rating.

Incompas, which advocates for increased competition in the wireless industry, asked the Commission in July to publicly disclose details of recent telecom mergers obtained in confidence from the companies involved to “interested commenters” in the Net Neutrality proceeding allowing consumers can obtain valuable insight into the “economic incentives and abilities of incumbent broadband providers to curb competition, including through their control of residential broadband connections.”

The group specifically called out AT&T’s merger with DirecTV, Comcast’s failed merger with Time Warner Cable, and Charter’s merger with Time Warner Cable and Bright House Networks. All of the entities involved either operate wireless networks themselves or partner with a provider that does. Incompas believes a document release will show increased concentration and market power and the marked impact that can have on what consumers pay for service and how those companies plan to treat competing traffic.

The information disclosure sought by the group was vehemently opposed by Verizon, which doesn’t want its business secrets revealed to the public.

“There is no legal justification or sound policy basis to justify making this highly sensitive business information available in the Restoring Internet Freedom proceeding,” Verizon countered in its filing. The phone company does not want to publicly release details about its connection agreements with other companies or exactly how many customers it serves. “[N]othing has changed since the adoption of these protective orders that warrants the Commission weakening these protections by allowing this sensitive business information to be disclosed to potentially millions of ‘interested commenters’ in the Restoring Internet Freedom proceeding.”

While some Net Neutrality critics have sought to dismiss the more than 13 million comments received so far by the FCC on Net Neutrality as confused ranting, Verizon takes an opposite position saying the Commission is already bogged down with quality comments on Net Neutrality and does not need more, claiming it would only add to a flood of analysis on Net Neutrality. Verizon claimed among the submissions received by the FCC are “millions of comments, thousands of pages of expert testimony and declarations and hundreds of substantive analyses and submissions with detailed economic, legal and policy arguments.”

Charter Communications did not appreciate the proposal either, claiming it was unfair.

“Such an outcome would eviscerate the core protection of the commission’s protective orders, thereby unfairly punishing Charter’s past compliance and threatening the commission’s ability to obtain sensitive information from private parties in the future,” Charter officials wrote.

California Legislature Wants to Give $300 Million of Your Money Away to AT&T, Frontier, and Big Cable

Delivering 21st century broadband speeds to rural Californians just doesn’t interest incumbent phone companies like AT&T and Frontier Communications, so the California legislature has been hard at work trying to entice upgrades on the taxpayer’s dime while reassuring ISPs they won’t have to break a sweat doing it.

Steve Blum from Telus Venture Associates reports the California Advanced Services Fund (CASF), California’s equivalent of the FCC’s Connect America Fund (CAF) – is about to get a makeover sure to delight the two phone companies while throwing some cash at cable operators like Comcast, Cox and Charter to keep them happy as well.

The changes are encompassed in Assembly Bill 1665, sponsored by Assemblyman Eduardo Garcia (D–Riverside County), who counts AT&T as his sixth biggest contributor. The phone company has cut checks to the former mayor of Coachella not less than a dozen times amounting to $16,700. Garcia has also received special attention from AT&T’s lobbyists, who invited him to appear side-by-side with AT&T officials at press-friendly events where the phone company donated $10,000 to an abused women’s shelter and $25,000 to the Court Appointed Special Advocates of Imperial County.

Blum reports that the bill has been largely a placeholder until now as negotiations and dealmaking happened behind the scenes. The result is a corporate welfare bonanza that will raise $330 million for the CASF by reinstating a telephone tax on consumers and businesses than ended last year. Of that, $300 million will end up in the pockets of phone and cable companies, $10 million will go to regional broadband efforts, and the remaining $20 million will be designated for schools, libraries, and non-profit groups to promote broadband use, but only where providers already offer service or will shortly. In effect, that $20 million will turn public institutions into sales agents for ISPs.

The corporate giveaway bill will also sell Californian consumers down the river:

  • The bill effectively replaces the FCC’s minimum definition of broadband (25/3Mbps) with California’s own minimum: 6/1Mbps — conveniently about the same speed telephone company DSL provides. As Blum writes, the language “makes 1990s legacy DSL technology the new 21st century standard.”
  • AT&T and Frontier Communications get monopoly protection with exclusive CASF rights in areas where they currently receive federal CAF funding. This means both companies will get to double-dip federal and state money to expand inferior DSL or fixed wireless service and never have to worry about taxpayer funding going to their competitors or communities that might choose to build their own superior broadband networks. It virtually guarantees rural California will be stuck with sub-standard internet access indefinitely, and at the taxpayer’s expense.
  • CASF funding has always been exclusively for infrastructure construction — building out the last mile to deliver internet access to consumers and businesses. But the new bill now allows the money to also be spent on “operating costs,” a rat hole where millions can quickly disappear with little improvement in broadband expansion or service.
  • The new bill suggests that provider contributions — where providers agree to kick in a percentage (usually 30-40%) of their own money on expansion projects in return for getting taxpayer subsidies, is just too hard on struggling phone companies like AT&T and Frontier. Under the new proposal, this requirement should be eliminated.
  • Individual homeowners would be able to apply for grants to get broadband connections, a direct nod to the state’s cable companies that routinely ask would-be customers just out of reach of the nearest cable line to pay tens of thousands of dollars to build a line extension. If approved, cable companies could set the installation price as high as the sky and get taxpayers to foot the bill, enriching themselves while avoiding any regulatory scrutiny.

Cable companies also get another wish granted — keeping subsidized broadband out the hands of many poor Californians that need connections for education, job-seeking, and training. The bill proposes to ban funding for broadband facilities in public housing. Cable companies have been irritated spending capital on broadband expansion to public housing only to find many of its customers would likely to qualify for their “internet for the poor” programs that cost as little as $10 a month.

Blum reports the language isn’t final and is likely to be amended as negotiations continue. A hearing of the Communications and Conveyance Committee at the State Capitol, Room 437 is scheduled for 1:30pm PDT today on the bill. You can listen to the hearing when in session here.

FCC’s Ajit Pai on Mission to Sabotage Charter-Bright House-Time Warner Cable Deal Conditions

Pai

As a result of the multibillion dollar cable merger between Charter Communications, Bright House Networks, and Time Warner Cable, the three companies involved freely admitted: your cable bill was unlikely to decrease, you won’t have any new competitive options, there was no guarantee your service would improve, or that you would get faster broadband service than what Time Warner Cable Maxx was already delivering to about half its customer base.

While shareholders and Wall Street bankers made substantial gains, top Time Warner Cable executives walked away with multimillion dollar golden parachute packages, and Charter took control of what is now the country’s supersized, second most powerful cable operator, regulators also required the dealmakers share at least a tiny portion of the spoils with customers.

Then President Donald Trump’s FCC chairman — Ajit Pai — took leadership of the telecom regulator. Now all bets are off.

Pai is reconsidering the settled deal conditions imposed by the FCC under the last administration, and wants to give Charter Communications a free pass to let them out of their commitment to compete. Last week, Pai circulated a petition among his fellow commissioners to roll back the commitment Charter acknowledged to expand its service area to at least one million new homes that already get broadband service from another cable or telephone company.

Former FCC chairman Thomas Wheeler sought the competition requirement to prove that cable operators can successfully run their businesses in direct competition with each other, potentially inspiring other cable companies to face off with incumbent operators outside of their own territories. A paradigm shift worked for Google, which inspired ISPs to boost speeds in light of its gigabit Google Fiber service, which reset customer expectations.

The FCC order approving the merger deal was hardly onerous, requiring Charter to compete head-to-head for customers in places the company can choose itself. Lawmakers eliminated exclusive cable franchise agreements years ago, but established major cable operators like Charter have gone out of their way to avoid competing in areas that already receive cable service. While Wheeler may have hoped some of that competition would be directed against fellow cable companies, Charter CEO Thomas Rutledge quickly made clear to investors and the FCC Charter would continue to avoid direct cable competition, instead promising to expand service into non-cable areas that already get DSL service from the phone company or no broadband at all.

“When I talked to the FCC, I said I can’t overbuild another cable company, because then I could never buy it, because you always block those,” Rutledge said. “It’s really about overbuilding telephone companies.”

Charter’s CEO believes most phone companies are not competing on the same level as cable operators and are unwilling to make the necessary investments to upgrade their aging wired infrastructure to offer faster internet speeds. That makes competing with telephone companies like Windstream, Frontier, and Verizon’s DSL-only service areas a much better proposition than trying to compete head-to-head with Comcast, Cox, or Cablevision.

Rutledge’s clear views about Charter’s expansion plans apparently never made it to the American Cable Association, a cable industry lobbying group that defends the interests of independent and smaller cable operators. Despite Rutledge’s public statements, the ACA and its members are afraid Charter could expand on their turf anyway, potentially forcing small cable operators to compete with the same level of service Charter offers. The horror.

The ACA’s arguments found a sympathetic audience in Mr. Pai and now he wants to let Charter off the hook, at the expense of competition and better service for consumers.

Under the proposal circulated by Pai, Charter would still be required to expand its cable broadband service by at least one million new homes, but those homes would no longer have to be in areas outside of Charter’s existing service footprint. In practical terms, this would mean Charter would focus on wiring areas not far from where it provides service today — ‘DSL or nothing’-country. Charter would also be able to fritter away the number of expansions required by counting newly constructed neighborhood developments it would have likely wired anyway, as well as upgrading its remaining shoddy legacy cable systems — some still incapable of offering broadband or phone service.

The ACA’s talking points prefer to emphasize the David vs. Goliath scenario of a big bully of a cable company like Charter being forced to compete (and likely obliterate) existing small cable operators:

“The overbuild condition imposed by the FCC on Charter is stunningly bad and inexplicable government policy,” said ACA president and CEO Matthew Polka, in a statement. “On the one hand, the FCC found that Charter will be too big and therefore it imposed a series of conditions to ensure it does not exercise any additional market power. At the same time, the FCC, out of the blue, is forcing Charter to get even bigger.”

The real goal here is to minimize direct competition at all costs. The FCC’s deal conditions already included the need for more rural broadband expansion. Wheeler’s second goal was to introduce a new model — cable company competing against cable company — fighting for new customers by offering consumers better service and pricing. The existence of such competition would belie the industry’s claim that cable overbuilds and head-to-head competition is uneconomical. Wildly profitable, perhaps not, but certainly possible. Historically, the traditional way cable operators dealt with the few instances of direct cable competition was to buy them out to put them out of business. Rutledge was certainly thinking along those lines when he complained that the FCC’s order to compete did not include permission to eventually devour its competitor, effectively making competition go away.

Had Charter chosen to compete with cable companies not afraid to spend money to upgrade service above and beyond the anemic broadband speeds Charter offers, it would likely find few takers for its maximum 300Mbps broadband service that comes with a $200 install fee.

“Why would we go where we could get killed?” Rutledge admitted.

Industry claims that the cable business is already fiercely competitive are also countered by Rutledge’s own statements making clear direct competition with brethren cable companies on the cusp of speed-boosting DOCSIS 3.1 upgrades was bad for business. Instead, he would focus on competing with inferior phone companies, which he characterized as mired in debt, still skeptical about the financial wisdom of fiber optic upgrades, and the only competitor where dismal 3-10Mbps DSL service presented a ripe opportunity to steal customers away.

Clyburn – A likely “no” vote.

Charter’s merger approval and its conditions are a sealed deal that was acceptable to Charter and its shareholders and at least offered small token treats to ordinary consumers. Mr. Pai’s willingness to reopen and undo those commitments is just one reason we’ve referred to his regulatory philosophy as irresponsible, nakedly anti-consumer, and anti-competitive. Mr. Pai’s willingness to embrace things as they are comes at the same time most consumers are paying the highest broadband bills ever while also facing an epidemic of usage caps, usage billing, and increasing service and equipment fees. Mr. Pai’s other actions, including ending an effort to introduce competition into the set-top box market, curtailing customer privacy, ending inquiries on usage caps/zero rating, threatening to eliminate Net Neutrality, and reducing the FCC’s already anemic focus on consumer protection makes it clear Mr. Pai is a company man, on a mission to defend the interests of Big Telecom companies and their lobbyists (that also have a history of hiring friendly regulators for high-paying positions once their government job ends.)

That conclusion seems apt considering what Mr. Pai said about Chairman Wheeler’s vision of improving broadband: “one more step down the path of micromanaging where, when, and how ISPs deploy infrastructure.” Missing from his statement are consumers who have spent the last 20 years watching ISPs govern themselves while waiting… waiting… waiting for broadband service that never comes.

Mr. Pai’s proposal needs just one additional vote to win passage. That extra vote is unlikely until President Trump appoints another Republican commissioner. Pai’s proposal isn’t likely to win support from the sole remaining Democrat commissioner still at the FCC — Mignon Clyburn.

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