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Time Warner Cable Finishes Maxx Upgrades in NY, LA; Will Upgrade Only 7 Additional Areas in 2015

Phillip Dampier November 13, 2014 Broadband Speed, Consumer News 8 Comments

twcGreenTime Warner Cable has finished the rollout of TWC Maxx upgrades in New York and Los Angeles and will likely finish in Austin by the end of this year, delivering free broadband speed upgrades up to 300Mbps and a better television experience.

“Today marks an important milestone in Time Warner Cable’s commitment to provide our customers with best-in-class products and service,” said Time Warner Cable chairman and CEO Robert Marcus, in a release. “Every customer in our two largest markets now has access to the superfast Internet and new TV experience promised by TWC Maxx.  Faster speeds are also available to every customer in the Austin, Texas, market, and we’ve committed to reinvent the service experience in seven additional markets in 2015.”

Unless you live in Kansas City, Dallas, San Antonio, San Diego, Hawaii, Charlotte or Raleigh, there will likely be no reinvention of broadband service for you, with top speeds still “maxing” out at just 50/5Mbps at the beginning of 2016.

maxed outWhile Time Warner Cable customers have seen the company’s top premium speed stagnate at 50/5Mbps in many parts of upstate New York, South Carolina, western Ohio, and Maine for several years, TWC Maxx communities will see Standard Service speeds start at 50Mbps and rapidly increase from there. The differences in speed and price paid for broadband in Maxx markets vs. non-Maxx markets is staggering.

The average Time Warner Cable customer in Los Angeles will pay a promotional price of $35 a month for 50/5Mbps service. In upstate New York and other un-Maxxed areas, the price for that speed is $70 a month — twice as much.

Some customers in Los Angeles are being provided rent-free cable modems while subscribers in other cities continue to pay $6 a month.

There is speculation Time Warner Cable has set a conservative upgrade schedule for Maxx upgrades with the understanding the company will probably no longer exist long before the end of 2015, becoming a part of Comcast sometime early next year. Whether Comcast will continue the Maxx upgrade program is unknown, but it is doubtful — Time Warner’s maximum cable broadband speeds in Maxx markets are considerably faster than what Comcast offers most of its own customers.

 

Big Cable, Telcos Spent $42 Million In 2013-2014 Lobbying for Deregulation, Against Net Neutrality

AT&T, Comcast, Verizon, Time Warner Cable and the cable industry’s chief lobbying group spent $42.8 million during the 2013-2014 election cycle to weigh in on issues including burying Net Neutrality, outlawing community broadband competition, winning tax breaks for themselves, and avoiding consumer protection regulations.

A Common Cause analysis of data from the Center for Responsive Politics and the Institute for Money in State Politics shows that the usual suspects poured money into political coffers on the state and federal level to influence lawmakers.

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On the federal level, murky party committees received the largest individual checks: a total of $862,223 for House and Senate Republicans and $552,605 for Democrats. Individual members of Congress also received their own contributions, including Republican House Speaker John Boehner ($98,175 from Comcast) and Democratic Senator Mark Pryor ($88,650 from Comcast, TWC, and National Cable and Telecom. Assn.) Pryor will need to spend his contributions quickly. He was de-elected by Arkansas voters last Tuesday.

Net Neutrality is a major topic on the minds of the cable and telco companies, as is ongoing deregulation and decommissioning rural landline service, and pushback on revelations AT&T and Verizon were only too happy to turn over your phone records to the federal government.

In the states, the bigger the issues coming up in the legislature, the bigger the campaign checks. In Florida, AT&T is the state’s single largest source of political donations, giving $1.53 million to state lawmakers in the past year and another $660,000 to Gov. Rick Scott (R) and his appointed heads of state agencies. AT&T is lobbying for eliminating Florida’s telecommunications tax, win the right to place cell towers wherever they wish without much interference from local officials, and further deregulation. Most of AT&T’s money goes into the hands of the state’s Republicans.

In New York and California, Democrats got a major chunk of money from Comcast and Time Warner Cable — New York Governor Andrew Cuomo received $60,800 each from both Comcast and Time Warner Cable (totaling $121,600). California Governor Jerry Brown received $54,400 from Time Warner Cable and $27,200 from Comcast. Both states are reviewing the merger of the two companies this year. AT&T and Verizon are also major donors – AT&T wants to dismantle the rural telephone network in California and Verizon is trying to convince the New York legislature to approve its own rural landline replacement – Voice Link. It also wants reduced scrutiny of its landline performance in New York and more access to New York City buildings where it faces resistance from property owners who want compensation from Verizon to install FiOS.

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New York Regulators Again Delay Final Decision on Comcast-Time Warner Merger

Phillip Dampier November 13, 2014 Comcast/Xfinity, Public Policy & Gov't Comments Off on New York Regulators Again Delay Final Decision on Comcast-Time Warner Merger

Stop the Cap! has learned the New York State Public Service Commission has again delayed its final decision on the merger of Comcast and Time Warner Cable.

The latest deadline the PSC will pass is Nov. 19, and the new deadline, accepted by both cable operators, is Dec. 31, 2014.

Sources tell us the multiple delays come as a result of regulators underestimating the complexity of the transaction and its potential impact on New York residents.

There is also an ongoing legal dispute over the possible public release of information both cable companies argue is proprietary and confidential. Public interest groups argue otherwise and consider details about current broadband subscriptions, future expansion plans, and the possible fate of Time Warner Cable’s $14.99 low price Internet plan worth sharing with New York residents.

Time Warner Cable Boosting Basic Broadband Speed from 3 to 6Mbps

Phillip Dampier November 12, 2014 Broadband Speed, Competition, Consumer News 1 Comment

Time Warner Cable is in the process of upgrading “Basic” broadband tier ($30-40 a month) customers from 3 to 6/1Mbps at no extra charge. You may have the upgraded speeds even if you haven’t received e-mail from Time Warner Cable yet. Follow the instructions below and check your speed:

basic speed

(Image courtesy: Rachel Barnhart)

A merger with Comcast will see Time Warner Cable customers forced to downgrade back to 3Mbps for Comcast’s basic “Economy Plus” service ($39.95/mo) or pay a higher Internet bill for Comcast’s 6Mbps Performance Starter plan ($49.95/mo). An $8 a month modem rental fee also applies, likely to rise to $10 by early 2015.

AT&T Blackmails America: No (Phony) Fiber Upgrades Until You Kill Net Neutrality

Phillip Dampier November 12, 2014 AT&T, Consumer News, Net Neutrality, Public Policy & Gov't 1 Comment

ransomAT&T is putting its gigabit fiber network upgrades on hold as long as President Barack Obama continues to insist on robust Net Neutrality for American broadband.

AT&T Randall Stephenson told Wall Street investors attending this morning’s Wells Fargo Technology, Media, and Telecom Conference that the current state of “uncertainty” created after President Obama delivered remarks Monday in favor of strong Net Neutrality protections makes any investment in fiber upgrades too risky to continue.

“We can’t go out and just invest that kind of money deploying fiber to 100 cities […] not knowing under what rules that investment will be governed,” Stephenson said, excluding the two million customers already upgraded under AT&T’s Project VIP, AT&T’s effort to boost its wireless infrastructure in rural areas and upgrade U-verse to handle incrementally faster broadband speeds. “We have to just put a stop on those kinds of investments that we are doing today.”

But Stephenson’s accusation that the president’s strong support for Net Neutrality is responsible for putting AT&T’s plans on hold ignores the financial realities that have been a part of AT&T’s proposed upgrades since the company first announced them in April 2014.

Construction of Verizon’s fiber to the home FiOS network required significantly enhanced spending for several years, much to the consternation of Wall Street, that frequently criticized the project as too costly. In contrast, there have been few complaints about AT&T’s much larger 100 city fiber project because financial reports show no significant spending increases or large-scale capex investments by AT&T. In fact, on Friday — three days before the president made his remarks on Net Neutrality — AT&T announced investment cuts of at least $3 billion for 2015.

Stop the Cap! has reported AT&T’s fiber upgrades lack appropriate financial support and will require billions in increased investments to offer more than a handful of demonstration projects limited to new housing developments and multi-dwelling units where construction costs are considerably lower.

Stephenson admitted that most of the company’s Project VIP upgrade effort is now nearly complete, allowing the company to return to “normal” spending levels seen when major upgrades are not underway.

“You say okay, here has been the [increased spending in the budget], those projects are finished, we spiked it,” Stephenson said. “Now we’re bringing it down to a more normal rate.”

Stephenson reminded investors that they will see a dramatic savings in investment spending starting late this year.

“Just the cost [to AT&T over the last few years of Project VIP and] to be putting away this much investment, [it has been] a big operating expense block […] that we have been dragging through the last three years as we did all these buildouts,” said Stephenson. “You will see in 2014 the fourth quarter that [level of] capex start to tail off.”

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