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Cablevision May Owe You Up to $140 for Its Cable Box, But Only If You Ask

Phillip Dampier May 9, 2016 Cablevision (see Altice USA), Consumer News, Public Policy & Gov't Comments Off on Cablevision May Owe You Up to $140 for Its Cable Box, But Only If You Ask

cablevision boxIf you are or were a Cablevision cable-TV customer, the cable company may owe you up to $140 for overcharging you for their set-top box, but only if you ask.

Current and former subscribers in New Jersey, New York, and Connecticut will share the proceeds of a settlement fund proposed in federal court in response to a class action lawsuit (Marchese v. Cablevision Systems Corp.) that alleged Cablevision has been misrepresenting the need for its cable equipment dating back to 2004.

You probably qualify as a class member if you had cable television service and a Cablevision set-top box anytime between April 30, 2004 and March 9, 2016. Former subscribers will likely receive a check valued at $20-40. Current customers will be offered the option of a one-time bill credit of $20-40 or the opportunity to get free services from Cablevision valued at $50-140. The longer you’ve been a customer, the higher the value of the free services you may qualify for, including free premium movie channels or multi-room DVR service. If you already have both, you will only qualify for the bill credit.

optimumCustomers should register as a class member to guarantee a share of the settlement proceeds. Visit cableboxsettlement.com to register online, e-mail [email protected] or call 1-888-760-4871. The deadline to file a claim is Sept. 23, 2016.

The proceeds of the settlement will likely be distributed by the end of this year, after a fairness hearing scheduled for September to discuss the requested attorneys fee, estimated to be as high as $9.5 million.

As is often the case in class action lawsuits, the company being sued need not admit any wrongdoing, and Cablevision is proclaiming its innocence.

“Cablevision denies all of the claims and allegations in the lawsuit and notes that the settlement is subject to final approval of the court,” a company statement said. “We cannot comment further beyond the publicly available filings in the litigation.”

Only 34% of Broadband Customers Would Recommend Their ISP to Others

Usage caps and usage billing are especially unpopular.

Usage caps and usage billing are especially unpopular.

Americans do not have a love affair with their phone or cable company, according to a new study that found most customers either wouldn’t recommend or are neutral about their Internet Service Provider (ISP).

A survey conducted by Incognito Software Systems unintentionally stumbled on the fact consumers deal with either a monopoly or duopoly for broadband service, giving them few alternative options if they do not like the service they are getting. Despite the mediocre ratings many customers give their ISP, only 10% have switched providers in the last year.

“This could reflect a lack of choices in certain regions, or it may be indicative of subscriber apathy toward Internet Service Providers,” the survey found.

Urban and suburban residents hold slightly more favorable views about their broadband service than their rural counterparts. The report found rural residents were less satisfied with service speeds and pricing options, which in most cases involve traditional DSL service from the local phone company.

broadband reportIncognito’s findings show broadband providers are reducing initiatives to acquire new customers as broadband penetration in the United States approaches 90%. Instead, they want current subscribers to pay more to satisfy demands for higher average revenue per customer. Customers already believe their current ISP is charging too much for too slow service.

“In this era of subscriber monetization, it’s essential that broadband providers clearly grasp what’s important to their existing subscribers,” Stephane Bourque, president and CEO of Incognito, said in a statement. “As our survey shows, providers are expected to do more than ever before: provide faster speeds, lower prices and superior WiFi capabilities to live up to their subscribers’ demands.”

“Most subscribers want to pay less (39%) for faster Internet services (24%),” the survey found. At least 33% want faster speeds and 28% are looking for better Wi-Fi reliability. An additional 32% want more choice in Internet plans at different prices.

The survey also found one thing customers absolutely do not want from their ISP: usage-based pricing. The fact that 58% of respondents didn’t want a usage-based billing plan might seem low until the report explains another 27% did not know what usage-based plans were. Only 15% of consumers would prefer a usage-based plan, assuming it would save them money. Most usage billing plans available to customers today do not, unless a customer is willing to cut their usage to 5GB or less per month.

In an effort to appease disappointed cable and phone company executives, the report’s authors optimistically suggest “further education could go a long way into changing the subscribers’ perception” about usage pricing.

Besides raising speeds and reducing prices, the value-added feature customers want their ISP to offer the most in the future is a robust network of accessible Wi-Fi hotspots.

Analysis: FCC, Justice Dept. Ready to Approve Charter-Time Warner Cable-Bright House Merger

charter twc bhThe Justice Department and FCC Chairman Thomas Wheeler are prepared to accept a massive $55 billion merger between Charter Communications, Time Warner Cable, and Bright House Networks, but at a cost of stringent conditions governing the creation of America’s second largest cable conglomerate.

In a joint agreement with the U.S. Department of Justice and the FCC, Charter executives have agreed to do nothing to harm online video competition or implement usage caps or usage-based billing for at least seven years. Charter will also be forced to broaden its cable service to reach at least two million additional homes, some already served by other providers, setting the stage for potential head-to-head competition between two closely-matched competitors.

The deal will directly affect 19.4 million customers of the three companies, which will eventually combine under the Charter Communications brand name and marketing philosophy — selling customers simplified television, phone, and broadband packages that reduce customer options. Little is expected to change for the rest of 2016, however, with Time Warner Cable and Bright House likely to continue operations under existing packaging and pricing until sometime in 2017. Technicians told Stop the Cap! earlier in April they were told not to acquire new outfits with the Time Warner Cable logo and branding, and the cable company is also making preparations to gradually repaint its massive fleet of vans and service vehicles with the Charter logo.

President Obama Expected To Nominate Rep. Mel Watt For Director Of The Federal Housing Finance Agency

Wheeler

Most of the concessions seemed to have originated from FCC Chairman Thomas Wheeler, who has been one of the strongest proponents of online video competition, improved broadband, and direct head-to-head competition between cable operators. The Justice Department focused its attention on challenging the cable industry’s almost-united front against online video competition. Under former CEO Glenn Britt’s leadership, Time Warner Cable was considered “the industry leader” in contract language that guaranteed it would share the lowest price negotiated by any other cable, satellite, telephone company or online video provider. Those agreements also often included clauses that restricted programmers from putting streamed programming online for non-subscribers. That explains why cord-cutters frequently run into barriers watching networks online unless they can prove they are already a pay-TV customer.

Under conditions from the Justice Department, those sections of agreements with Charter, Time Warner Cable and Bright House Networks will become invalid and unenforceable. But that doesn’t mean restrictions will disappear overnight. Comcast, Cox, Cablevision, and other cable companies also enforce similar conditions which will be unaffected by the Justice Department decision, at least for now. But the precedent has sent shudders across an industry concerned about protecting its still-profitable cable TV business, under assault from increased programming costs and a greater reluctance by consumers to tolerate annual rate increases.

analysisGene Kimmelman, chief executive of consumer interest group Public Knowledge, told the Wall Street Journal the conditions were “a clear signal to the content industry and entertainment companies that the enforcement agencies are giving them a green light to grow online video and experiment as a direct competitor to cable, and they will prevent cable from interfering.”

Of greater interest to consumers are the deal conditions proposed by Chairman Wheeler. As Stop the Cap! reported almost a year ago, sources told us the FCC would “get serious” about data caps if companies like Comcast imposed them on customers nationwide. At the moment, Comcast is testing caps affecting just under 15% of their total customer base, already generating thousands of customer complaints with the FCC in response. Although Charter promised three years of cap-free service, Wheeler and his staff obviously felt it was important to send a message that they agree with cap opponents that data caps are more about preventing competition than technical need. By making long term data cap prohibition a core part of a settlement agreement with Charter, Wheeler sends a strong message to Comcast that the FCC isn’t drinking cable industry Kool Aid about the rationale for usage caps and usage billing.

Some consumer groups worry Charter has overextended itself in debt over-acquiring other cable companies.

Some consumer groups worry Charter has overextended itself in debt over-acquiring other cable companies.

“New Charter will not be permitted to charge usage-based prices or impose data caps,” Wheeler said in a statement. “Second, New Charter will be prohibited from charging interconnection fees, including to online video providers, which deliver large volumes of internet traffic to broadband customers. Additionally, the Department of Justice’s settlement with Charter both outlaws video programming terms that could harm online video distributors (OVDs) and protects OVDs from retaliation– an outcome fully supported by the order I have circulated today. All three seven-year conditions will help consumers by benefitting OVD competition. The cumulative impact of these conditions will be to provide additional protection for new forms of video programming services offered over the Internet. Thus, we continue our close working relationship with the Department of Justice on this review.”

Wheeler is also intent on proving there is a viable market for cable operators overbuilding into new territories. To prove that point, Wheeler has gotten an agreement that Charter will introduce service to one million new customers where it will intrude on another operator’s service area and directly compete with it. The other provider has to already offer service at 25Mbps or greater. That could mean Charter competing directly with a cable company like Comcast or building service into an area already served by Verizon FiOS, AT&T U-verse, or another provider offering something beyond traditional DSL.

Copps

Copps

Another million customers just outside of areas served by the three cable companies may also finally get service, as Charter will be compelled to wire at least another million homes for cable service for the first time.

Despite the conditions, many consumer groups and former public officials remain unhappy the merger won approval.

“Creating broadband monopoly markets raises consumer costs, kills competition, and points a gun at the heart of the news and information that democracy depends upon,” said Michael Copps, a former Democratic commissioner at the FCC and a special adviser to the Common Cause public interest group. “FCC approval of this unnecessary merger would be an abandonment of its public interest responsibilities.”

“There’s nothing about this massive merger that serves the public interest. There’s nothing about it that helps make the market for cable TV and Internet services more affordable and competitive for Americans,” said Craig Aaron, president and CEO of Free Press. “Customers of the newly merged entity will be socked with higher prices as Charter attempts to pay off the nearly $27 billion debt load it took on to finance this deal. The wasted expense of this merger is staggering. For the money Charter spent to make this happen it could have built new competitive broadband options for tens of millions of people. Now these billions of dollars will do little more than line the pockets of Time Warner Cable’s shareholders and executives. CEO Rob Marcus will walk away with a $100 million golden parachute.”

Wheeler’s draft order is likely to receive a final vote in the coming days before the Commission. The only remaining holdout is California’s telecom regulator, which is expected to reach a decision by May 10.

Time Warner Cable Tests “Skinny Bundles” of Major Networks, HBO, Showtime for $10/Mo

Phillip Dampier April 18, 2016 Competition, Consumer News, Online Video 5 Comments

20 CHANNELWhile cable operators continue to deny cord cutting is real, their marketing departments think otherwise and are responding with slimmed down cable TV packages showcasing premium movie channels at a non-premium price.

This week, Time Warner Cable began offering a $10 add-on video package of over-the-air major network stations for new customers in Manhattan signing up for 50/5Mbps broadband service ($39.95 a month alone on a one year promotion in TWC Maxx markets). Oh did we forget to mention that $10 also includes both HBO and Showtime — the same networks Time Warner sells to everyone else for about $16.95 a month each?

At $10 a month, the package is a steal if you are still interested in local live/linear TV and movie channels. XFINITY Stream for Comcast is comparable, but Comcast extracts $15.99 a month for almost the same thing.

Time Warner Cable is obviously targeting disinterested Millennials that might otherwise skip television or consider the $20 Sling TV package instead.

But the cable company is downplaying the package and its price.

Time Warner Cable CEO Rob Marcus likes to remind investors at least 80 percent of Time Warner customers still subscribe to the big 200+ channel cable TV package, and Time Warner has hardly been a pioneer of “skinny bundles” that cut down the TV package to just the essentials.

Despite those assertions, the number of Americans willing to drop cable television continues to increase… and fast. Convergence Consulting notes the industry lost 283,000 video customers in 2014 and 1.1 million in 2015 — a four-fold increase. Convergence estimated at least another 1.1 million will cut the cable TV cord this year in what could become “the new normal.”

Video consumers are turning instead to on-demand, online viewing, which can provide commercial-free and binge viewing opportunities. Both Millennials and Generation X viewers are trending towards shows, not channels and networks, and many would never know (and fewer still care) what channel they were watching without the identity bug perpetually attached to the lower right of the screen.

Eventually, cable television service will likely occupy a part of a fat IP-pipe free-for-all, where viewers can still watch linear programming if they wish, but are more likely going to customize a much more personal viewing experience online instead.

Popular Motorola/Arris SurfBoard Cable Modems Have Annoying Security Flaw

Phillip Dampier April 11, 2016 Consumer News 1 Comment

arrisIf you own or lease a Motorola/Arris SurfBoard 5100, 6121, or 6141 cable modem, security researchers have uncovered an annoying vulnerability that could expose you to a denial of service attack.

David Longenecker first discovered the flaw with the world’s most popular cable modem — the SB-6141, a highly recommended DOCSIS 3 model. The firmware does not password protect access to the cable modem’s configuration menu, accessible by visiting 192.168.100.1 in a web browser.

In addition to technical information about the modem and the cable system’s current cable broadband configuration, there are two user accessible reset buttons, one to reboot the modem and another to reset it to its original factory settings. Rebooting the modem will disrupt your Internet connection for under a minute, but doing a factory reset could bring the modem offline until someone reaches the cable company to request the modem be reauthorized. An individual with nefarious intent can repeatedly reset the modem, bringing the user offline again and again.

arris config

SB6141 is a DOCSIS 3 modem

SB6141 is a DOCSIS 3 modem

The Houston Chronicle explains how this could become a widespread problem:

Included within this interface is the ability to reset the modem. A user can be tricked into clicking on a simple link that will reboot the SB6141, and you can see a proof of concept here. Note that if you have one of these modems with this flaw, and you click the link, your modem WILL reboot.

Normally, you’d have to be sitting at a computer on the same network as the modem to trigger a reboot. But the link above takes advantage of the fact that you can mask a local Web page address as an image file. As Longenecker describes it:

Did you know that a web browser doesn’t really care whether an “image” file is really an image? Causing a modem to reboot is as simple as including an “image” in any other webpage you might happen to open – which is exactly the approach taken on the RebootMyModem.net proof of concept:

<img src=”http://192.168.100.1/reset.htm”>

Of course it’s not a real image, but the web browser doesn’t know that until it requests the file from the modem IP address – which of course causes the modem to reboot. Imagine creating an advertisement with that line of code, and submitting it to a widely-used ad network…

Advanced users can go into their router’s configuration page and block access to the IP address 192.168.100.1 (the modem’s configuration page) for anyone inside their network. That step prevents you or anyone else on your network from accidentally clicking a link that tricks your modem into rebooting. But most users will probably wait until Arris has distributed firmware updates that cable operators will eventually apply to correct this vulnerability. The upgrade will occur in the background and most users will never notice it.

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