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Shocking Revelation: Big Telecom Companies Treating You Like Trash Turns Out to Be a Mistake

Jeff Kagan is a name familiar to anyone that follows the cable industry. For over 30 years, Kagan has been tracking consumer perceptions about the telecom industry and offering insight into the challenges these and other businesses were likely to face in the future.More recently, Kagan has been fretting about the growing trend of retail businesses paying more attention to cultivating their relationships with Wall Street while targeting their customers for abuse.

“I have been noticing how in recent years, retail is becoming increasingly unfriendly to the customer. This is a mistake,” Kagan offers in a new opinion piece on Equities.com. “New technologies and new ideas may be good for the bottom line in the short-term. They may solve problems like shoplifting, and that may make investors happy today. However, in the long-term, these customer unfriendly trends will take their toll as customers will shop where they feel appreciated, respected and wanted. Customers shop at stores they love. Love is an emotion. So, we must think of winning the customer with emotion. This is difficult for most businesspeople to understand.”

‘My way or the highway’-type attitudes from retailers come from all sorts of businesses. Warehouse clubs make you pay for the honor of shopping there. Chains like Walmart are beefing up security teams and in some places now demand to see receipts from customers exiting the store. But nobody has abused customers better and longer than the telecom industry. Not even the cattle car-like airlines.

Kagan

After literally decades of almost bragging about their “don’t care” customer service while throwing attitude and intransigence at customers unhappy with service or pricing, the nation’s biggest cable and phone companies are now experiencing long-overdue customer revenge. Kagan notes that cord-cutting is not just about switching to a competitor for service. Many customers are literally thrilled to see the back end of their long hated provider.

Decades of monopoly service made abusing customers a risk-free and very profitable strategy for companies like Comcast, AT&T, Charter, Cox, Mediacom, and Verizon. In fact, someone turned the concept of the “cable guy” into a horror movie. Did you stay home from work to wait for a service call that never materialized? Tough luck. Don’t like yet another rate increase? Too bad.

“The reason they did this was, they had no competition in their market area. That meant the customer could not leave them,” Kagan noted.

After years of getting a bad reputation, only two things threatened to scare telecom companies straight — the fear of imminent regulation, such as what happened in 1992 when reregulation of cable companies turned out to be the only bill that year to be vetoed by President George H. W. Bush and overridden by the U.S. Senate to become law.

The other, much more scary fear is competition. In the mid-1990s, the nation’s biggest phone companies including what we now know as AT&T and Verizon were contemplating getting into the video business. This proved far more threatening than the much smaller home satellite dish business, which attracted around three million Americans at the time. The cable industry spent years taking shots at satellite competitors, including sticking dishowners with the cost of buying a $300 descrambler box up front, and charging as much (or even more) for programming than cable customers paid, despite the fact homeowners had to purchase and service their own dish, often 6-12 feet wide and not cheap to install.

The cable industry feared phone companies would charge ratepayers to subsidize their entry into the television business and sought protective legislation prohibiting the same cross-subsidization the cable industry would later rely on to introduce broadband and phone service.

More recently, after the country reached “peak cable” — the year the highest number of us subscribed to cable TV, the industry recognized it was likely all downhill from there. Comcast, in particular, specialized in empty lip service gestures to improve the customer service experience. For years, it promised to do better, only to do worse. The company even attempted to shed its bad reputation by changing the brand of its products from Comcast to “XFINITY.” Customers were not fooled, but that did not stop Charter from following Comcast’s lead, introducing the “Spectrum” brand to its products and almost burying its corporate name, which it barely references these days.

Kagan notes not following through on the customer service experience made cable companies ripe for stunning customer losses as new competitors for video service emerged. Comcast and Charter are among the biggest losers of cable TV customers, but their bad attitudes persist. Their latest ideas? Keep raising prices, rely on tricky Broadcast TV surcharges that are soaring in cost, end customer retention offers for dissatisfied video customers, and make up the difference in lost revenue by jacking up the price of broadband service, which is already nearly all-profit.

“The bottom line for any business is always focus on the customer. If they are happy, your business will remain strong and growing,” Kagan warned.

At some point, customers will get more choices for broadband service. Community owned broadband solutions have been very successful in communities that have experienced the worst abuse AT&T, Comcast, and Charter can deliver. In the future, fixed 5G wireless may provide perfectly respectable internet service if it is not data capped. Next generation satellite providers, interloping independent fiber to the home providers, and mesh wireless providers may offer consumers a number of options that can deliver suitable service and perhaps finally put cable and phone companies in their place.

Cable Industry Ends Disagreement Over DOCSIS 4.0: Two Different Approaches Will Co-Exist

The next standard for cable broadband is now due by 2020.

For over a year, the cable industry has been stalled after deciding to slash investment in broadband while enduring indecision and confusion over the next generation of cable broadband.

At issue is a simmering disagreement — rare for the usually unified cable industry — about the next generation of cable broadband, dubbed DOCSIS 4.0.

Two sides have emerged. Cable giant Comcast has spent years gradually preparing its network for perhaps the last iteration of coaxial copper-delivered cable internet service. It has spent at least five years gradually pushing optical fiber closer to its customers, retiring additional coaxial cable and the amplifiers and other equipment associated with that technology. The result is a company ready to embrace Full Duplex DOCSIS, known as “FDX.”

FDX is designed to allow upload and download traffic to share the same spectrum, letting cable companies put internet service bandwidth to full use with maximum efficiency. Comcast wants FDX to be a central part of DOCSIS 4.0. The company has been working through a long-term plan to offer much faster internet service, including symmetrical broadband — unified upload and download speeds. This would erase the cable industry’s broadband Achilles’ heel: download speeds much faster than upload speeds.

To achieve FDX, cable companies have to push fiber much deeper into their networks, sometimes right up to the edge of neighborhoods. It also means eliminating signal amplifiers that help keep signals robust as they travel across older coaxial cable infrastructure. Engineers call this concept “Node+0” architecture, which means a network with zero amplifiers.

FDX gives the cable industry the opportunity of running a more robust broadband network, easily capable of 10 Gbps with an upgrade path to 25 Gbps later on. The downside is that it can be very expensive to implement, especially if a cable company has under invested in upgrades and not incrementally laid a foundation for FDX. Wall Street may balk at the upgrade costs. The logistics of readying degrading older infrastructure to launch FDX may be so onerous, some cable systems may find it more cost effective to scrap their existing hybrid fiber-coaxial (HFC) networks and switch to a state-of-the-art fiber to the home network instead. That is precisely what Altice USA is doing with its Cablevision/Optimum system in New York, New Jersey, and Connecticut.

Charter Communications, along with many other smaller cable operators, have been pushing an alternative to FDX that is likely to cost much less to implement. Extended Spectrum DOCSIS (ESD) is designed to work over existing cable systems, including those that still rely on amplifiers and aging coaxial cable. Instead of allowing internet traffic to share bandwidth, ESD follows the existing standard by keeping upload traffic on different frequencies than download traffic. It simply extends the amount of bandwidth open to both types of traffic, which will allow cable systems to raise speeds. ESD will dedicate frequencies up to 3 GHz (and higher in some cases) for internet traffic. DOCSIS 3.1, the current standard, only supports internet traffic on frequencies up to around 1.2 GHz. ESD will also allow cable companies to raise upload speeds and should support up to 10 Gbps downloads. But there are some questions about how well ESD will support 25 Gbps speed and the condition of the cable company’s existing coaxial network will matter a lot more than ever before. A substandard network will cause significant speed degradation and could even disrupt service in some cases.

Despite the limitations of ESD, many cable companies consider its low implementation cost a principal reason to support it over FDX.

For much of this year, cable companies have put upgrades on hold as the industry sorts out which direction DOCSIS 4.0 will take. Equipment manufacturers and vendors have resorted to layoffs and cutbacks and have signaled neither Comcast nor other cable companies are big enough to justify different DOCSIS standards supporting FDX or ESD.

Comcast and Charter are the two largest cable companies in the United States.

Therefore, the cable industry has informally decided DOCSIS 4.0 will need to support both FDX and ESD under a single specification, with next generation cable modems and equipment capable of supporting either technology. At a joint pre-Cable-Tex Expo conference held on Monday, executives from Comcast and Charter appeared to support the new unified approach to DOCSIS 4.0.

John Williams, vice president of outside plant engineering and architecture at Charter Communications, told attendees cable companies need to support both FDX and ESD and stop taking an “either/or” approach.

“In order to do this, we need to look at the synergies and embrace ESD and FDX as the next generation of HFC,” Williams said. “It’s all about scale.”

Charter has been significantly challenged historically because its own legacy cable systems were often behind the times and sometimes dilapidated. Its 2016 acquisition of Time Warner Cable and Bright House Networks only complicated things further, because neither operator had a reputation for using state-of-the-art HFC technology. Costly upgrades have been underway at many Charter-owned cable systems since the merger closed, some still ongoing.

Robert Howald, part of Comcast’s network upgrade team, called the emerging DOCSIS 4.0 standard a “perfect complementary pair” of FDC and ESD. He noted both approaches will allow cable systems to boost speeds to at least 10/10 Gbps, with faster speeds in the future.

Howald pointed out Comcast is already testing FDX technology in Connecticut and Colorado, working out bugs and unexpected technical challenges.

“We feel like we’ve significantly de-risked some of the technology components of FDX,” Howald said. “We felt really good about what we saw in the field.”

What is Full Duplex DOCSIS? This video from CableLabs explains the technology and how it differs from other DOCSIS cable broadband technology. (1:58)

Altice Launches Altice Mobile: $20 Unlimited Plan for Optimum/Suddenlink Customers, $30 All Others

Phillip Dampier September 5, 2019 Altice USA, Competition, Consumer News, Wireless Broadband 9 Comments

Altice USA today launched its nationwide mobile phone service, offering “lifetime unlimited talk, text, and data” for $20 a month for existing Optimum and Suddenlink customers, $30 a month for non-customers.

Altice has agreements with Sprint and AT&T to host its wireless service on both provider’s 4G LTE networks when customers are outside the range of a suitable Wi-Fi network. Altice’s plan is designed with pricing simplicity — $20 per line, up to five lines per account. A $10 activation fee may apply and prices do not include taxes, fees, and surcharges. The plan provides:

  • unlimited data, text, and talk nationwide (up to 50 GB data usage per month, after which speed is subject to throttling to 128 kbps for the rest of the billing cycle),
  • unlimited mobile hotspot (speed limited to 600 kbps),
  • unlimited video streaming (streaming video will play “at DVD 480p quality”),
  • unlimited international text and talk from the U.S. to more than 35 countries, including Canada, Mexico, Dominican Republic, Israel, most of Europe, and more, and,
  • unlimited data, text and talk while traveling abroad in those same countries.

Altice discloses customers connected to 4G LTE service should expect download speeds of 6-8 Mbps and upload speeds of 2-3 Mbps with “round-trip latency of less than 100 ms.” If you connect to a 4G LTE Advanced cell tower, customers can expect faster download speed of 12-30 Mbps. Altice does not allow customers to connect to 3G service and does not support 5G service at this time.

Altice claims its mobile plan can save customers up to $600 per year for one line, and up to $1,100 per year for households and families with five lines. It is also the first cable mobile plan that will accept non-customers, at a higher price. Non-Optimum or Suddenlink customers (or current customers who discontinue cable service or who fall seriously past due on their accounts) will pay $30 a line, a $10 premium.

Altice claims its mobile network welcomes customers bringing their own devices, and offers an online compatibility checker. But an FAQ claims Altice Mobile is currently only able to support iPhone for Bring Your Own Phone service. It must be iPhone SE, 6 or newer, and operate iOS 12.2 or above.

In contrast, Comcast and Charter both accept a wider range of devices and rely on Verizon Wireless’ 4G LTE network, but at a price of $12-14/GB or $45/month for unlimited talk, text, and data. Those two cable companies only sell mobile service to customers subscribed to their home broadband services.

Southern California Getting 200 Mbps Standard Internet from Charter Spectrum

Phillip Dampier September 4, 2019 Broadband Speed, Charter Spectrum, Consumer News, Video No Comments

Spectrum customers in Southern California are gradually getting a free upgrade to 200 Mbps — twice the usual Standard speed, starting with new customers.

Spectrum has been running commercials in the region promoting the company’s new entry-level internet speed of 200 Mbps, along with a free cable modem and no data caps. The current new customer promotion offers $44.99/mo for internet service for 12 months, or a package of TV and internet for $89.98 a month for 12 months (which does not include equipment fees or the significant Broadcast TV Fee, which will add at least $20 more to the TV side of your bill).

Some current customers in legacy Time Warner Cable areas are successfully getting the speed upgrade by asking customer service to re-provision their cable modem. Others are finding the new speed after briefly unplugging their modem, while others are still waiting for any upgrade at all. It is clear the company is soft-launching the speed upgrade and is taking some time before publicly announcing it to all of their existing broadband customers in the area.

About 45% of Charter Spectrum’s footprint supports 200 Mbps as the entry level internet speed, mostly in AT&T landline service areas in the Midwest. Charter has not said when the rest of their service areas will get the free upgrade, but considering the company is about to raise internet prices, bringing faster speeds soon might make the price hike sting a little less.

Spectrum is running this advertisement in Southern California, promoting 200 Mbps internet service. (0:59)

India Getting 100 Mbps Fiber-to-the-Home Service for Under $10/Month

Jio founder Mukesh Ambani formally announces the launch of Jio Fiber.

Starting Thursday, the first 500,000 of over 15 million Indians pre-registered for service will begin receiving fiber to the home broadband at speeds starting at 100 Mbps, bundled with free unlimited voice calling for under $10 per month.

Jio Giga Fiber will eventually serve more than 20 million Indian homes and businesses in over 1,600 communities, charging a fraction of the prices charged by North American cable and phone companies, and expects to remain profitable by selling extra services, including unlimited global calling plans and television service, to Indian consumers. To sweeten the deal, customers that commit to a year of service will receive a 4K LED TV and set-top box for free.

Jio has already laid over 186,000 miles of optical fiber and has an existing base of 500,000 trial customers across India that have been testing the service.

Jio is India’s largest wireless provider, with over 323 million subscribers, making it the third largest mobile operator in the world. It is also one the newest, having launched wireless service in late 2015 over an expansive 4G LTE network. The company was founded by Mukesh Dhirubhai Ambani, one of Asia’s wealthiest men. His vision is to make telecommunications services affordable and available to the largest number of people possible, with an emphasis on making entry-level plans usable and affordable. His presence in the Indian telecom market has caused the same marketplace disruption T-Mobile has caused in the U.S.

Jio’s chief competitor, the state-owned BSNL telephone company, is rumored to be negotiating with several of India’s independent cable and internet providers to offer a competing joint bundle of TV, landline, and broadband services over optical fiber at prices under $9.75/month.

If both companies are successful, Indians will have access to some of the cheapest internet service in the world. 

Jio Fiber is designed to provide India with fiber broadband service as good or better than what is available in the United States and Canada, for a much cheaper price. Ambani noted the average broadband speed in the U.S. is now 90 Mbps, but Jio Fiber will beat that with plans starting at 100 Mbps. He has successfully navigated around skeptical investors by putting up more than $30 billion of his firm’s own money to back the telecom venture, instead of returning that money to shareholders in the form of dividend payouts and share buybacks. He can raise even more cash by selling and leasing back Jio’s extensive network of wireless cell sites.

Ambani sees Jio’s fiber network as a foundation for marketing additional products and services. Wealthier Indians will be invited to spend up to $139 a month on gigabit internet, a deluxe TV package with over 600 TV channels, a landline with unlimited international calling, and access to popular movies on the same day titles are released in Indian theaters. Customers with premium level service will also get free subscriptions to “most” popular video streaming services available in India (excluding Netflix and Amazon Prime Video). One downside to Jio’s plan — it comes with a 100 GB monthly data cap. Those exceeding it will see their speeds reduced to 1 Mbps for the rest of the current billing period. There is no word yet about the availability of unlimited use plans at an additional cost.

Jio has been strategically planning to introduce fiber service for several years and has purchased several Indian cable companies to help manage infrastructure, installation, and a network of retail stores that will act as a sales point for Jio’s wireless and fiber services.

Jio’s Mukesh Ambani introduces India to Jio’s new fiber to the home service, which will cost under $10 a month. (6:59)

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