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Time Warner Cable Begins Digital Cable Conversion in Upstate New York

Phillip Dampier September 12, 2012 Consumer News 3 Comments

Time Warner Cable is alerting customers in upstate New York they are next in line for a gradual transition away from analog cable television service.

But unlike the near-complete switch to digital affecting many customers in Maine, the cable operator plans a less jarring shift in New York, beginning with switching 4-7 channels to digital format between Oct. 10-17.

Time Warner will also introduce New York customers to the company’s digital transport adapter (DTA). The digital adapter was designed for televisions currently direct connected to cable without a set top box. Time Warner’s DTA will convert digital signals to standard definition analog, so customers can get back the channels they lost in the digital switch without the monthly expense of a traditional set top box.

Time Warner plans to offer its New York customers free DTA equipment until the end of November, 2013 — after which the boxes will cost 99 cents a month. (Time Warner’s DTA website claims the boxes will be available without cost until the end of 2014.)

Customers using DTA equipment will not be able to use them to watch premium channels, but will get back any basic channels that were previously converted to digital-only format and those channels switched in the future.

The channels being dropped from analog service vary in each upstate city. Time Warner is notifying customers by mail about the specific channels that will be dropped in each area, but here is a rough breakdown:

Rochester: CMT, C-SPAN, EWTN, Golf Channel, Lifetime Movie Network*

Buffalo: C-SPAN, EWTN, CFTO (CTV), E!*, CNN International*, OWN*, WXPJ (Ion)*,  Discovery Fit and Health*

Syracuse: CMT, C-SPAN, EWTN, Golf Channel, Lifetime Movie Network, OWN, truTV

(*)-Not in all areas.

Time Warner Cable previously announced it was committed to discontinuing analog cable television service across its national footprint within the next four years.

In a separate announcement, all Time Warner Cable customers will see the addition of more Fox programming thanks to a recent contract renewal agreement.  Fox Business Network, and its HD companion channel, will now be a part of Time Warner’s Standard tier (although the channels will continue to be in the digital format). Fox Movie Channel, previously part of the mini-pay Movie Pass tier will be moved to the Digital Basic Tier. These changes are scheduled to occur Oct. 31.

Verizon’s Dilapidated Image in Buffalo: A Picture Says It All

Phillip Dampier September 4, 2012 Consumer News, Editorial & Site News, Verizon 1 Comment

A Verizon pay phone in front of a company facility in downtown Buffalo, N.Y.: A Buffalo Rising editorial raises questions about the state of Verizon in the Queen City by sharing photographs of a dilapidated “Verizon building on Elmwood between Lexington and Utica. How is it that such a huge company can associate its image with such a tragic appearance? If there was any company in Buffalo that could afford to make improvements to a prime location, it’s Verizon.”
(Click image to read the story on Buffalo Rising)

FiOS Leaves Cities Behind As Verizon Lobbies for Cross-Marketing Deal With Cable Foes

Phillip Dampier August 13, 2012 Broadband Speed, Competition, Consumer News, Public Policy & Gov't, Verizon, Video Comments Off on FiOS Leaves Cities Behind As Verizon Lobbies for Cross-Marketing Deal With Cable Foes

The CWA’s Verizon-Cable Company Deal Monster

While Verizon customers in more than two dozen towns and communities around Boston can enjoy fiber optic broadband service today, residents inside the city of Boston cannot buy the service at any price. It is largely the same story in Syracuse, Buffalo, and Albany, N.Y., and Baltimore, Md.

With Verizon’s fiber network FiOS indefinitely stalled, local community leaders and union workers are more than a little concerned that Verizon is spending time, money and attention promoting a deal with the cable industry — its biggest competitor.

The Communications Workers of America is stepping up its protest of a proposed deal between Verizon’s wireless division and large cable operators including Comcast and Time Warner Cable that would result in cross-marketing agreements that sell cable service to Verizon Wireless customers and wireless service to cable customers.

The union is urging the Federal Trade Commission and the Federal Communications Commission to stop the deal because, in their view, it will destroy any further expansion of fiber optic-based FiOS, reduce competition, and raise prices for consumers.

The union notes that cable operators are not being asked to promote Verizon’s FiOS network, only Verizon Wireless’ phone services. Verizon Wireless, which barely mentions FiOS service in many of its wireless stores, would suddenly be promoting Comcast and Time Warner Cable instead.

The odd-network-out is clearly Verizon’s fiber optic FiOS service, which was originally envisioned as a competitor against dominant cable operators. But when the economy tanked, Verizon stalled fiber deployment, agreeing only to wire areas where the company already concluded negotiations with local officials. That leaves urban population centers in the northeast (except New York City) stuck with the cable company or Verizon’s DSL service, which has been become increasingly difficult to buy.

Verizon countered the deal would be good for consumers, especially those buying cable packages.

“We believe these agreements will enhance competition, allowing Verizon Wireless to take market shares from other wireless companies, while allowing cable companies to more vigorously compete by enabling them to offer wireless services as part of a triple or quad-play package of services,” the company said in a statement.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/CWA TV Ad Behind Closed Doors.flv[/flv]

The Communications Workers of America launched this new ad — “Behind Closed Doors” — last week in Washington, D.C., Virginia, and Pennsylvania media markets. (1 minute)

But union workers in FiOS-bypassed communities like Binghamton, N.Y. suggest customers will simply be on the short end of Verizon’s stick. They note the nearest city where Verizon is deploying fiber optics is suburban Syracuse — more than 70 miles to the north.

BALTIMORE: Left behind as FiOS spreads to six surrounding counties

BOSTON: No Internet revolution

ALBANY: The Empire State’s capital city has no FiOS

BUFFALO: Hit hard by the digital divide

SYRACUSE: Surrounded by high speed—but none for the city

[flv width=”580″ height=”380″]http://www.phillipdampier.com/video/WBNG Binghamton Union Fights Verizon Deal 8-8-12.mp4[/flv]

WBNG reported on a CWA-sponsored protest against Verizon’s deal with cable companies in FiOS-deprived Binghamton, N.Y.  (1 minute)

New Study Claims Verizon-Cable Company Pact Could Cost 72,000 Jobs; Threatens FiOS

Phillip Dampier July 11, 2012 Comcast/Xfinity, Competition, Cox, Public Policy & Gov't, Rural Broadband, Verizon Comments Off on New Study Claims Verizon-Cable Company Pact Could Cost 72,000 Jobs; Threatens FiOS

Verizon has a moratorium on further expansion of its fiber to the home service except in areas where it has existing agreements to deliver service.

A new study predicts an agreement between Verizon and the nation’s top cable companies to cross-sell each other’s products could cost up to 72,000 jobs in the northeastern U.S. and potentially threaten Verizon’s state-of-the-art fiber optics network FiOS.

The Federal Communications Commission (FCC) and the U.S. Department of Justice are continuing to review a proposed deal that would allow Verizon Wireless and companies including Time Warner and Comcast to cross-market each other’s products, which critics allege will eliminate competition and job-creating investment.

In the crosshairs of the deal: Verizon’s fiber to the home network FiOS, which has been stalled since 2009 when Verizon signaled it was “winding down” FiOS spending. According to the new report, produced by the Communications Workers of America (CWA), FiOS is at risk of being undercut by Verizon in favor of reselling cable-TV packages from Comcast, Time Warner Cable, and other cable companies. At worst, some critics of the deal contend Verizon will eventually abandon FiOS altogether.

The CWA has already seen the impact of Verizon’s declining interest in expanding FiOS as the company has left several major American cities in its service footprint, including Baltimore, Buffalo, Syracuse and Boston without fiber optic upgrades.

The CWA is calling on regulators to impose conditions on any deal between Verizon and cable operators:

  • Prohibit Verizon Wireless and the cable companies from cross-marketing in Verizon’s landline service areas;
  • Require Verizon to build the FiOS network to 95% of Verizon households in its landline footprint, including in rural and low-income areas;
  • Ensure that Verizon Wireless and other cable companies are not able to lock out competitors.

If Verizon were to maintain the expansion of FiOS to non-FiOS areas, about 72,000 new jobs would be created, the CWA report found. Job growth would be concentrated in eight Eastern states and Washington D.C.

“If done right, the proposed deal would add tens of thousands of new jobs and allow underserved communities access to high quality broadband service,” said Debbie Goldman, telecommunications policy director for the CWA. “The FCC has the obligation carefully to assess this deal in terms of likely job loss.  We expect regulators to reject this deal unless the parties accept conditions that would create jobs, increase network investment, and promote consumer choice.”

Those living in Verizon service areas without FiOS are already upset that they have been effectively bypassed by the phone company.

“It’s an arrogant stand,” Buffalo Councilman Darius Pridgen said in a phone interview with the Philadelphia Inquirer. Verizon has upgraded other areas in upstate New York with FiOS, but not financially distressed Buffalo. “It’s advertised in the city, but it’s not available in the city.”

In Philadelphia, Verizon obtained a 15-year video franchise agreement with city officials and the company agreed to extend FiOS throughout the city by 2016. But residents are complaining that Verizon’s definition of “extending service” has meant wiring cables down major thoroughfares, not wiring up every home that wants the service.

City Councilman James Kenney called for a public hearing in April amid complaints that Verizon was reneging on its commitment to city officials and residents.

Cole

Baltimore councilman William Cole thinks his city was skipped by Verizon for a reason, while more affluent areas are set to get fiber upgrades. Cole told the newspaper his constituents have called Verizon after seeing local ads for FiOS service, but are told they cannot get the service.

Verizon spokesman Edward McFadden said the decision to build the FiOS network was never popular on Wall Street. “We got hammered,” he told the Inquirer, “and our shareholders were punished for this.”

Now that the network is up and running, McFadden says Verizon retains a strong incentive to maintain its FiOS business because of the huge investment and the increased earnings it brings the phone company.

But the CWA’s Goldman remains convinced Verizon has broken its word with regulators and politicians who believed promises from Verizon and other telecom companies that passage of the deregulation-packed 1996 Telecommunications Act would inspire the dawn of a new competitive era in American telecommunications. Now instead, Verizon and the cable companies want to simply sell each other’s services.

“They wanted deregulation, and they said they would compete,” Goldman said. “This marks the beginning of the surrender, this truce.”

ALEC Lobbyists Sneaking Around Albany and NY State Democrats Want It Stopped

Squadron

The American Legislative Exchange Council (ALEC), a conservative business-funded lobbying group, has been sneaking around New York’s state capital pretending to be a charity when it is in reality responsible for authoring at least 39 bills during the current session of the legislature.

Sen. Dan Squadron, the ranking Democrat on the state Senate Investigations and Government Operations Committee told the Wall Street Journal the corporate-backed group should be registered a lobbying group and not a charity.

“You know they say if it looks like a duck quacks like a duck, it must be a lobbyist,” said Sen. Bill Perkins, a Manhattan Democrat. “As such it is required to be registered, and its activities are required to be transparent, and apparently that is not what’s happening right now.”

ALEC provides legislators with corporate-written sample legislation that elected officials can use as templates to produce their own bills that favor corporate interests. The group claims a 20 percent success rate getting bills passed through the New York State Legislature, which is not bad in a legislative body legendary for its dysfunction.

Maziarz

Common Cause New York says it will file a formal complaint next week with state ethics officials about ALEC’s failure to properly register itself as a lobbying group.

That brought a strong response from ALEC, which accused Common Cause of being part of a grand liberal conspiracy with George Soros to harass and silence the group.

Two state senators with reportedly close ties to ALEC are Sen. George Maziarz, a Republican from Niagara County, and ALEC state chairman Sen. Owen Johnson, a Long Island Republican.

Maziarz, who accepts campaign contributions from Verizon Communications, was in the middle of a 2010 dispute over a proposed Verizon data center to be built in Somerset, N.Y. Maziarz sided with Verizon and verbally attacked one of his constituents who opposed the pace of the project, and its lack of a complete environmental impact review.

Verizon ultimately changed its mind about the project after purchasing Terremark, which operates data centers.

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