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Comcast Announces Atlanta and Nashville as Launch Cities for DOCSIS 3.1 Service

Comcast-LogoComcast customers in Atlanta, Nashville, Chicago, Detroit, and Miami will be the first to get Comcast’s new DOCSIS 3.1 modems and faster Internet plans likely to accompany the introduction of the latest cable broadband standard.

Multichannel News reports after field trials in Pennsylvania, Northern California and Atlanta, Comcast is ready to deploy the newest cable modem standard for residential and business class customers to deliver gigabit broadband services delivered over the company’s traditional hybrid fiber-coaxial cable network.

The company expects to begin distributing new modems to customers early this year, starting in Atlanta and Nashville. Comcast is still finalizing pricing on its fastest gigabit-range plans, but the cost is expected to be less than Comcast’s Gigabit Pro offering, which is delivered over fiber-to-the-home service. The cable company now charges Gigabit Pro customers $299.95 a month for the gigabit fiber service with a two-year contract. It is likely Comcast will have to price its cable gigabit offering under $100 a month to compete effectively with Google Fiber and AT&T’s U-verse with GigaPower. Google and AT&T are readying gigabit networks in both of Comcast’s first launch markets.

Comcast exempts Gigabit Pro customers from its growing field trial of data caps, but the company had nothing to say about whether its DOCSIS 3.1-powered plans will receive similar treatment. If not, customers can expect a 300GB monthly allowance.

During the second half of this year, Comcast will expand DOCSIS 3.1 to Chicago, Detroit and Miami. Beyond that, Comcast would not say when the rest of its customers across the country would be upgraded to DOCSIS 3.1 service.

Customers who own their own modems and do not plan to upgrade to a faster plan can continue to use that equipment. Customers looking to upgrade will have to lease a modem from Comcast or buy an authorized DOCSIS 3.1 capable modem, which is expected to cost 30-50% more than traditional DOCSIS 3.0 equipment.

AT&T Gets Stingy With DirecTV Promotions for Existing Customers; $100+ for TV-Only Service

Phillip Dampier January 27, 2016 AT&T, Competition, Consumer News, DirecTV, Public Policy & Gov't 4 Comments

directvDirecTV under AT&T’s ownership is turning out to be no bargain for customers finding it increasingly tough getting a promotional rate package with the satellite provider.

Fred Johnson has been a DirecTV customer in rural Iowa for almost six years and has had to call DirecTV every time his on-contract promotion nears an end. Off-contract customers generally do not receive the best promotions and DirecTV’s regular prices can make the average cable company blush.

“It is not unusual for DirecTV customers to get quoted rates of $80 a month for satellite television and then receive a bill for over $100 once the surcharges, rental fees, taxes, and other hidden fees are added to your bill,” Johnson tells Stop the Cap! “There are months when the bill can go up even higher with no explanation, and even the customer service department cannot explain all the mysterious charges.”

At the end of the usual two-year contract, it has become customary for many long time DirecTV customers to call and threaten to cancel if they cannot get a renewed promotional rate, and for years DirecTV had been happy to oblige.

In 2015, AT&T bought the satellite provider and is in the process of integrating it as part of the AT&T family of services, next to U-verse, AT&T Mobility, and traditional landline service. That is the year the discounts seemed to evaporate for customers like Johnson and Evelyn Wiedmer, who subscribes to DirecTV for the family’s recreational vehicle.

Recreational vehicle owners are among the most loyal to satellite television.

Recreational vehicle owners are among the most loyal to satellite television.

“We were just told our bill was going to increase $45 a month starting in February and there is little we can do about it,” Wiedmer tells us. “The call center lady mentioned that the new owner of DirecTV is going in a different direction with promotions and we no longer qualify for any specials, unless we also want to get an AT&T cell phone.”

Wiedmer and her husband are retired and travel the country in their RV and do not have room in the budget to pay AT&T an extra $540 a year for the same package of channels they used to get for about $65 a month.

“They apparently do not want us to be customers anymore because DISH Networks will sell us a comparable package for about $60 a month, which is much less than the $105 DirecTV is charging us starting next month,” Wiedmer writes. “It looks like DirecTV won’t be competing with AT&T U-verse and the cable company anymore at their prices.”

Critics charge that is exactly the point. Adam Levine-Weinberg called the AT&T-DirecTV merger “one more step towards oligopoly,” warning approval of the merger would remove a serious competitor for tens of millions of customers also served by AT&T U-verse.

“That means there [were] tens of millions of people who [had] a choice between AT&T and DirecTV (as well as the local cable company and satellite TV rival DISH Networks,” said Levine-Weinberg. “The merger [reduced] many consumers’ pay-TV options from four to three, giving the remaining companies more pricing power.”

AT&T is flexing that pricing power by pulling back on promotions and discounts. In addition to curtailing retention plans and promotions for existing customers, AT&T also announced rate increases for DirecTV that take effect tomorrow:

The monthly pre-tax price of DirecTV’s “Select” and “Entertainment” programming tiers will go up by $2, to $51.99 and $61.99, respectively. The “Choice” and “Xtra” bundles will increase $4 to $74.99 and $81.99, respectively; the “Ultimate” pack will go up $5 a month to $91.99; and the “Premier” bundle will grow by $8 to $144.99. That is well over $150 a month after taxes and fees are added, just to watch television. AT&T is also applying a 50 cent increase to a fee DirecTV charges for… selling television service. The so-called “TV Fee” will now cost $7.00 a month.

(Courtesy: zidanetribal17)

(Courtesy: zidanetribal17)

“You used to switch to satellite to save money, but now cable companies offer returning customers lower prices than what DirecTV will offer,” notes Johnson. “It’s almost like they want to drive customers away. It worked. Our neighbors are now collecting money to convince Mediacom to extend their cable down our rural street and after these price increases we finally have enough willing to contribute to switch to cable television and remove the satellite dishes from our rooftops.”

Wiedmer has also canceled her DirecTV service this week, switching to DISH Networks.

“Would you sign another two-year contract agreeing to pay $540 more a year for two years with nothing in return for the extra money?” Wiedmer asks. “AT&T and DirecTV can take a hike.”

N.Y. Approves Charter-Time Warner Merger; Stop the Cap!’s Impact on Deal Conditions

charter twc bhConditions recommended by Stop the Cap! to protect New York consumers after a merger of Charter Communications and Time Warner Cable are expected to cost the two cable companies almost one billion dollars and will guarantee statewide adoption of Time Warner Cable’s Maxx upgrade, guaranteeing all customers receive speed upgrades ranging from 60-300Mbps.

On Friday, the N.Y. Public Service Commission announced its conditional approval of the merger transaction, but only if Charter agrees to a series of wide-ranging conditions to guarantee that New York customers receive tangible benefits as a result of the merger:

The Commission agrees that in order for the proposed merger to be in the public interest, the Petitioners must agree to make concrete and enforceable commitments to modernize their cable system and services, expand access, address the digital divide and improve customer service. To this end, we find that with the acceptance by the Petitioners of the enforceable conditions, as discussed in the body of this Order and Appendix A, the proposed merger is in the public interest. These conditions are designed to help ensure a near ubiquitous world-class communications network that meets the needs of all New Yorkers. Absent acceptance of these conditions, the public interest standard cannot be met, and the petition for transaction approval is denied.

Stop the Cap! was quoted and footnoted extensively in the PSC order. We provided the PSC with insight beyond the public relations machine of Charter and Time Warner Cable. We exposed the fact Charter’s promised service improvements were actually more modest than what Time Warner Cable has undertaken on its own through its Maxx upgrade program. We educated regulators about the inadequacy of Charter’s initial commitment to offer low-cost Internet access for low-income families. We questioned the consumer benefits of certain upgrades that could actually increase costs for consumers because of additional equipment fees. We alerted the PSC that Charter would discontinue Time Warner’s affordable $14.99 Internet offer. We strongly recommended the PSC consider making rural broadband expansion a part of this transaction. We also sought additional protections from any future compulsory usage caps or usage-based billing.

special reportAlthough Stop the Cap! was opposed to the transaction from the outset, doubting it was in the public interest, we recognized the chances for approval were greater than the Comcast-TWC merger that was eventually withdrawn. Therefore, we made it a priority to outline multiple conditions we felt should be imposed on Charter if the deal was to be approved.

Our constituency is ordinary consumers and ratepayers. Too often these kinds of mergers are approved with token conditions that only benefit minority or special interests, favored non-profit or government entities, or those with vested business interests (programmers, equipment manufacturers, etc.) It was important to us that any approval bring something beyond free Internet service for schools or community centers, agreements to continue carrying certain cable networks, or a temporary discount or low value coupon that ends up in the mailboxes of customers a year or two from now.

We know what Time Warner Cable customers in New York want: better service, faster speeds, no data caps, no gotcha fees, affordable Internet options, and job protection.

It appears New York regulators understand that as well and intend to force Charter to offer customers a better deal.

Despite publicly saying little about the merger, just a few hours after the PSC’s decision, Gov. Andrew Cuomo’s office issued a press release taking credit for the merger conditions and unveiling the “tenth signature proposal of his 2016 agenda: dramatically expanding and improving access to high-speed Internet in communities statewide.” Once again, the governor will try to entice providers like Time Warner Cable, Frontier Communications, and Verizon to expand rural broadband in New York using public dollars.

Although lacking a catchy title, the “New New York Broadband Program” includes a $500 million solicitation for private sector partners to subsidize rural broadband expansion with state dollars. The key goals of the 2016 program include:

  • stcAccess to broadband at speeds of at least 100Mbps; 25Mbps in the most remote areas of the State.
  • Public-private partnerships with a required 50 percent match in private sector investment targeted across the program.
  • Priority for projects that improve broadband Internet access in unserved areas, libraries and educational opportunity centers.
  • Applications will be chosen through a “reverse-auction” process, which will award funding to bidders seeking the lowest State investment.
  • Auctions to be held within each Regional Economic Development Council region to ensure statewide allocations of funding.

Much of the funding from earlier years ended up going to Time Warner Cable for modest expansion of its cable service, especially in eastern upstate New York. Likely applicants in 2016 include Time Warner Cable, Frontier Communications, community-owned/co-op broadband providers and rural wireless ISPs. Verizon and Cablevision are unlikely to apply.

Despite the governor’s efforts, most New York homes and businesses will be more affected by the Charter-Time Warner Cable merger, if it wins federal approval.

Gov. Cuomo

Gov. Cuomo

The Public Service Commission took its role very seriously, issuing a 93-page decision that took recommendations from consumer groups including Stop the Cap! very seriously. It did not share the industry’s belief that telecommunications providers in New York are heavily competitive.

“Time Warner serves close to 50% of New York State and we have a legitimate interest in ensuring that, when a company of this size provides customers with a service so affected by the public interest, as is communications, that real benefits accrue to consumers as a result of a given transaction,” the PSC wrote.

The PSC had an easier time sorting through comments about this merger, which generated considerably less interest than Comcast’s failed attempt to buy Time Warner.

“Generally, comments supporting the proposed transaction assert that, among other things, the merger will create jobs and provide better products at more affordable rates,” the PSC concluded in its ruling. “Those opposing the transaction state that the merger will inevitably lead to higher rates and potential data caps on broadband services in the future.”

The PSC took a very skeptical approach to Charter’s promised benefits, often finding them vague, questionable, or likely to have occurred with or without Charter’s involvement.

new-yorkFor example, the PSC questioned Charter’s promised network investments and upgrades:

Petitioners, however, decline to specify where in the national footprint of Charter, TWC and BHN these investments will be made or to identify the decisional factors to be used to channel these capital resources to specific areas or customers. There is no analysis to indicate that a reasonable proportion of these investments will be to systems in New York or for the benefit of New York customers. Similarly, there is no proposal by the Petitioners to describe the specific commitments that are being made or the specific enforcement mechanisms that would be used in the event the Petitioners’ implementation fell short of their commitments. Further, in order for these investments to be characterized as part of a net public benefit, Staff concludes, and we agree, that Petitioners would have to establish that these investments would not have been made in the absence of the proposed merger.

In the absence of a demonstration that there is “a tangible commitment to make new investments or invest beyond Time Warner’s current capital investment budgets,” it is difficult to characterize these capital expenditures as a certain benefit to New York customers or a satisfaction of the public interest under the New York statutes.

One of Stop the Cap!’s core arguments in our comments to the PSC was that Charter’s upgrade commitments were not particularly meaningful because Time Warner Cable was gradually upgrading its own systems to a level of service superior to what Charter plans to offer. The PSC clearly understood this and our warning that Charter’s commitments lacked specificity:

Public Benefit Assessment Staff and several commenters suggest that the proposed merger, as described in the Joint Petition and Petitioners’ Reply Comments, does not have sufficient net benefits to warrant a finding that the transaction is in the public interest. We concur. Many of the asserted benefits from the proposed transaction are events triggered by actions taken independently from the merger, and others are likely to be undertaken by TWC in any event, should the merger not be approved. Further, many asserted benefits are only described on a national scale and there is no way to determine if the investments or expenditures will occur in New York. Similarly, many of the projected benefits are described in terms that are too indefinite to permit us to assume that the benefits will occur as described to make a meaningful contribution to the transaction’s net benefits.

Time Warner Cable Maxx speed improvements.

Time Warner Cable Maxx speed improvements.

As a result, the PSC has looked more closely at Time Warner Cable’s Maxx program to be the benchmark for New York, not Charter’s proposed upgrades. They have adopted our recommendation that every Time Warner Cable customer in New York get the same kind of service upgrade residents in New York City enjoy today.

Another argument made by Stop the Cap! dealt with affordable Internet access. Time Warner Cable’s Everyday Low Price Internet ($14.99/mo for 2Mbps) is not fast, but it is affordable and free of the kind of revenue-protecting pre-conditions usually placed on Internet access for the poor. Time Warner’s plan is available to every customer at any time with no restrictions or contracts. In contrast, Charter’s originally proposed affordable Internet program required participants have school-age children, enroll only in the late summer, not have current cable broadband service (or be willing to forego it for 60 days), and not have any prior balance. As with Comcast, pre-conditions like this limit participation. The PSC agreed and now customers will be able to keep their more affordable Internet plans without jumping through artificial hoops launched by Charter.

The days of rural New Yorkers being quoted $20,000 to install Time Warner Cable service are also going to be a thing of the past. In addition to a commitment to pay for line extensions reaching 145,000 unserved or underserved customers, Charter is now required to work with New York’s Broadband 4 All program to receive supplementary funding, as available, to complete service extensions to eventually reach every customer that lives within a franchise area and wants cable service.

There are several other benefits outlined below that make this a better (although not great) deal, at least for New Yorkers. If any other state regulator manages to get an even better deal for that state’s residents, New Yorkers will automatically benefit because of a “most favored state clause” in the PSC’s order, which requires Charter to share those benefits with New York residents.

ny pscAll in all, the New York State Public Service Commission has lived up to its reputation as a consumer-protective body that is responsive to the needs of the public. This is in great contrast to many other states where regulators seem themselves as a business facilitator (and occasionally come directly from the businesses being regulated). In these states, the merger won approval with few, in any, preconditions.

We were delighted to have been extensively quoted and footnoted in the PSC’s order, having proven our case the Charter-Time Warner deal didn’t offer very much for New York. But we’re not happy the PSC punted on data caps. While recognizing they are a concern, the PSC seemed satisfied a three-year guarantee of no data caps was adequate. We disagree. As an increasing number of Comcast customers can attest, data caps are anti-competitive, anti-consumer, and unnecessary. Whatever benefits faster speeds can deliver can be easily curtailed by a data cap. So can online video competition. With much of upstate New York totally dependent on a single provider – Time Warner or Charter – for broadband speeds above 10Mbps, there is plenty of room for mischief that would otherwise be controlled by competitive forces. The PSC saw fit to avoid using its power of approval to get creative on keeping flat rate Internet affordable and available. That is a mistake we predict will be back to haunt us in the future.

Here are the specific conditions, most advocated by Stop the Cap!, that Charter Communications must agree to as a condition of the deal’s approval in New York:

Rural Broadband Access [$355 Million Value]

In addition to the goals accomplished by Gov. Cuomo’s New New York Broadband Program, Charter must agree to unilaterally build-out its network to reach an additional 145,000 “unserved” and “underserved” homes and businesses within four years. This will be an easy target for Charter to reach because the PSC defines “underserved” as any home with less than 100Mbps service. That represents much of upstate New York bypassed by TWC Maxx, so a speed upgrade in just one upstate city will achieve this requirement.

However, the PSC also included a second condition. Subject to the final terms and conditions of the Broadband 4 All Program being comparable to the Connect New York Program, Charter will be required to bid for Broadband 4 All Program funding to offer line extensions to any remaining unserved and underserved home across its entire New York service territory, which means every New Yorker within a cable franchise service area that wants service will be able to get it without being quoted tens of thousands of dollars for construction costs.

This will finally help would-be customers like Stop the Cap! reader Jesse Walser in Jamesville who has tried to get wired broadband in his home for over a decade. Verizon won’t upgrade its network and Time Warner Cable quoted him between $5,900 and $26,000 for installation of a line extension to reach his home.

All Digital Cable System Upgrade

Charter must convert their existing New York systems to an all-digital network (including upgrading the Columbia County Charter cable system to enable broadband communications) capable of delivering faster broadband speeds.

In Columbia County, residents are currently better served by smaller local providers. Both Germantown Telephone and Mid-Hudson Cable offer high-speed access throughout their territories. Berkshire Telephone has almost 100% DSL coverage, and Taconic Telephone has expanded DSL service to much of their huge service territory. Frontier Communications offers some DSL in southern Columbia County. The biggest problem providers are Verizon, which has no plans for DSL service in the area, and Charter Cable, which still runs a basic cable television-only system in the county.

In New York, Charter now provides cable television and other communication services to a relatively small number of customers, from two cable system clusters in and around Plattsburgh (14,000 customers) and Columbia County (2,500 customers). Plattsburgh gets television, phone and broadband service from Charter, but Columbia County is still served by a now-ancient, cable television only system.

Network Modernization and Speed Increases [$305 Million Value]

Charter must convert all of its systems in New York to all-digital within 30 months of the closing of the merger transaction. Charter is also required to offer broadband speeds up to 100Mbps to all customers by the end 2018 and match TWC Maxx speeds of 300Mbps by the end of 2019.

Charter’s all digital upgrade in upstate New York will facilitate faster broadband service, but it will also mean a set-top box or other similar device for every cable connected television in the home.

Broadband Affordability [$250 Million Value]

Despite Charter’s simplified menu of options (two broadband speed tiers and one video package), the PSC has required Charter to allow customers to keep their current plans, at least for the next several years:

  • Charter is required to maintain and advance its commitment to an affordable standalone Internet offering through the continuation of the Time Warner Everyday Low Price $14.99
    service throughout the Time Warner New York territory for up to two years and allow existing customers to keep the service for three years.
  • Charter is required to offer its 60Mbps standalone broadband product throughout New York at uniform national pricing. [$125 million value]
  • Charter is required to allow existing Time Warner customers to retain, without material changes that have the intent to discourage, the standalone and bundled broadband services they subscribe to at the close of the transaction for three years from the date of the closing.
  • Charter is required to provide a low-income broadband offering to eligible customers throughout its New York footprint. The PSC-ordered plan will offer 30Mbps for $14.99 a month to any household eligible for the National School Lunch Program and senior citizens 65 years and older eligible for the federal Supplemental Security Income program. No credit check shall be required and conditions requiring current broadband customers to wait 60 days to qualify and cover any past due bills have been deleted.

Customer Service [$55 Million Value]

Within two years after the close of the proposed transaction, Charter shall invest a minimum of $50 million in service improvement programs.

Charter is required to show a 35% reduction in Time Warner Cable’s 2014 cable PSC Complaint Rate by the end of 2020, with a 17.5% reduction due by the end of 2018. If they don’t achieve that, Charter must invest an additional $2.5 million in its service for each failure.

Job Protection

For the next four years, Charter cannot cut the number of customer facing jobs in New York.

The Peaceful War Against Comcast’s Data Caps: Don’t Like ‘Em? Get Off Your Butt

Licensed to print money

Licensed to print money

In 2008, Stop the Cap! was launched because the telephone company that serves our hometown of Rochester, N.Y., decided on a whim that it was appropriate to introduce a usage allowance of 5GB per month for their DSL customers. Frontier Communications CEO-at-the-time Maggie Wilderotter defended the idea with the usual claim that the included allowance was more than enough for the majority of Frontier customers. DSL customers already have to endure a lot of issues with Internet service and data caps should certainly not be one of them.

Stop the Cap! drew media attention and focus on the issue of data capping, organized customers for a coordinated pushback, and sufficiently hassled Frontier enough to get them to make the right decision for their customers by quietly rescinding the “allowances.”

As it would turn out, Frontier’s correct decision to suspend usage caps would prove an asset to them less than one year later when Time Warner Cable made it known it would trial its own usage caps in Austin and San Antonio, Tex., Greensboro, N.C., and yes… Rochester, N.Y. starting in the summer of 2009.

Time Warner Cable was slightly more generous with its arbitrary allowance — 40GB of usage for $55 a month. Customers already paying a lot for Internet access would now also have an arbitrary usage allowance and overlimit penalty fees with no service improvements in sight. Frontier’s decision the year before to rescind data caps played to their advantage and the company quickly launched advertising in Rochester attacking Time Warner Cable for its data caps, inviting customers to switch to cap-free Internet with Frontier.

Data caps are here!

Data caps are here!

Time Warner Cable’s experiment lasted less than two weeks and was permanently shelved, never to return. Four years later, Comcast began its own usage cap trial that not only continues to this day, but has expanded to cover more than 1,000 zip codes. Capped service areas typically live with a 300GB usage allowance with an overlimit fee of $10 per 50GB.

Yesterday at the investor-oriented UBS Global Media and Communications Brokers Conference, Comcast chief financial officer Mike Cavanagh assured Wall Street and shareholders Comcast’s desire to boost revenue from monetizing broadband usage remained an “important contributor” to the company’ goal of “demonstrat[ing] value and derive value from that pricing.”

Cavanagh said the company is using the line ‘heavy users should pay more’ to justify its caps.

“It’s been an experiment that we are using that the key data point behind it is kind of intuitive – ‘10% of our client base uses 50% of capacity.'”

While not ready to announce Comcast’s cap plan would be introduced nationwide, Cavanagh assured investors the experiments will continue as Comcast makes sure that over time it is “compensated for the investments that today’s marketplace requires us to make.”

The difference that makes it possible for Comcast to carry its usage cap experiments forward while Time Warner Cable had to quickly end theirs comes down to one thing: organized customer pushback. Time Warner Cable got heat from relentless, organized opposition in the four cities where caps mattered the most to consumers. Comcast, for the most part, is getting about as much heat as it usually does from customers. It’s time to turn the heat up.

protest

In fighting this battle for the last seven years, I can share with readers what works to force change and what doesn’t:

In 2009, Time Warner Cable faced protesters opposed to usage limits at this rally in front of the company's headquarters in Rochester, N.Y.

In 2009, Time Warner Cable faced protesters opposed to usage limits at this rally in front of the company’s headquarters in Rochester, N.Y.

Generally Useless

  • Complaining about usage caps in the comment sections of websites;
  • Signing online petitions;

Impotent But Potentially Useful in Large Numbers

  • Calling the provider to complain about usage caps;
  • Complaining about usage caps to a provider’s social media team (Facebook, Twitter, etc.);
  • Writing complaints on a company’s open support forum;

Useful, But Unlikely to Bring Immediate Results

  • Writing a letter or making a call complaining to elected officials about usage caps;
  • Advocating for more competition, especially from public/municipal broadband;
  • Filing formal complaints with the FCC and Better Business Bureau;
  • Complaining to state telecom regulators and your state Attorney General (they have no direct authority but can attract political attention);
  • Canceling or downgrading service, blaming usage caps for your decision.

Gasoline on a Lit Fire

  • Organizing a protest in front of the local cable office, with local media given at least a day’s notice and invited to attend;
  • Contacting local newsrooms and asking them to write or air stories about usage caps, offering yourself as an interview subject;
  • Sending local press clippings or links to media coverage to your member of Congress and two senators. Suggest another media-friendly event and invite the elected official to attend and speak, which in turn generates even more media interest.
In 2009, Time Warner Cable planned to implement mandatory usage pricing starting in Rochester, N.Y., Greensboro, N.C., and San Antonio and Austin, Tex.

In 2009, Time Warner Cable planned to implement mandatory usage pricing starting in Rochester, N.Y., Greensboro, N.C., and San Antonio and Austin, Tex.

In the battle with Time Warner Cable, we did all the above, but especially the latter, which quickly spun the story out of control of company officials sent to distribute propaganda about usage cap “fairness” and “generous” allowances. We were so relentless, we managed to get under the skin of at least one company spokesperson caught on camera being testy in an on-air interview, which backfired on the company and angered customers even more.

In the case of Comcast, very few of these techniques have been used in the fight against their endless data cap experiment. Customers seem satisfied writing angry comments and signing online petitions. Some have filed complaints with the FCC which are useful measures of hot button issues on which the FCC may act in the last year of the Obama Administration. But there is no detectable organized opposition on the ground to Comcast’s data caps. That may explain why Comcast’s CEO has repeatedly told investors your reactions to Comcast’s caps have been “neutral to slightly positive.” Many Wall Street analysts obviously believe that, because some are advocating the time is right to raise broadband prices even higher. After all, if your reaction to data caps was muted, raising the price another $5 a month probably won’t cost you as a customer either.

It would be very different if these analysts saw regular news reports of small groups of angry customers protesting in front of Comcast offices in different areas of the country. That would likely trigger questions about whether broadband pricing has gotten out of hand. Coverage like that often attracts politicians, who cannot lose opposing a cable company. Once Congress gets interested, the fear regulation might be coming next is usually enough to get companies to pull back and reconsider.

comcast sucksIf you are living with a Comcast data cap and want to see it gone, you can do something about it. Consider organizing your own local movement by tapping fellow angry customers and recruiting local activist groups to the cause. In Rochester, there was no shortage of angry college students and groups ready to protest. Google local progressive political groups, technology clubs, and technology-dependent organizations in your immediate area. Some are likely to be a good resource for building effective public protests, sign-making, and other TV-friendly protest techniques. Contact town governments, the mayor’s office of your city, technology-oriented newspaper columnists, radio talk show/computer support show hosts, etc., to build a mailing list for coordinated announcements about your efforts. Many local officials also oppose data caps.

If a local news reporter has covered tech or consumer issues in the past, many station websites now offer direct e-mail options to reach that reporter. If you give them a good TV-friendly story to cover, they will be back for more coverage as your local protest grows. We helped coordinate and share news about efforts against Time Warner in the cities that were subject to experiments, which also gave us advance notice of their talking points and an ability to offer a consistent response. Several stations carried multiple stories about the cap issue, supported by calls to TV newsrooms to thank them for their coverage and to encourage more.

We realize Comcast’s responsiveness to customers is so atrocious it approaches criminal, but Comcast does respond to Wall Street and shareholders who do not want the company under threat of fact-finding hearings, FCC regulatory action, or Congressional attention. They also don’t want any talk of municipal broadband alternatives. Sidewalk protests in front of the local cable office on the 6 o’clock news is a nightmare.

In the end, Time Warner Cable didn’t want the hassle and got the message — customers despise data caps and want nothing to do with them. Time Warner hasn’t tried compulsory usage caps again. If you want Comcast to get the same message, those living inside Comcast service areas (especially customers) need to lead the charge in their respective communities. We remain willing to help.

ARRIS Cable Modem/Gateway Security Lapse Offers Hackers Two Backdoors Into Your Network

Phillip Dampier November 23, 2015 Consumer News, Wireless Broadband Comments Off on ARRIS Cable Modem/Gateway Security Lapse Offers Hackers Two Backdoors Into Your Network

arrisARRIS, one of the country’s largest suppliers of cable modems, is under scrutiny after a security researcher discovered not one, but two secret “backdoors” potentially affecting more than 600,000 of the company’s installed cable modems/home gateways that could allow hackers access to a customer’s equipment and home network.

Bernardo Rodrigues published a report of the exploits on his blog, which affect ARRIS cable modem models including TG862A, TG862G, and DG860A. Rodrigues reports only ARRIS and your local cable company can fix the security problems, and neither seem to be in much of a hurry.

The Arris Touchstone 860, which can be identified by its model number depicted on the front of the modem.

The ARRIS Touchstone 860, which can be identified by its model number depicted on the front lower right of the modem.

“Securing cable modems is more difficult than other embedded devices because, on most cases, you can’t choose your own device/firmware and software updates are almost entirely controlled by your ISP,” Rodrigues writes. Indeed, very few cable modems allow users to self-update their equipment with the latest firmware. To guarantee uniformity, that privilege is given exclusively to the cable company providing service, even if a customer owns their own modem outright.

“ARRIS SOHO-grade cable modems contain an undocumented library (libarris_password.so) that acts as a backdoor, allowing privileged logins using a custom password,” Rodrigues writes. “The backdoor account can be used to enable Telnet and SSH remotely via the hidden HTTP Administrative interface “http://192.168.100.1/cgi-bin/tech_support_cgi” or via custom SNMP MIBs.”

While exploring the potential security damage that backdoor could permit, Rodrigues stumbled on a second, open to additional exploitation by hackers.

“The undocumented backdoor password is based on the last five digits from the modem’s serial number,” Rodrigues wrote. “You get a full busybox shell when you log on the Telnet/SSH session using these passwords.”

Arris TG862

ARRIS TG862

In plainer language, one or both backdoors will allow a hacker to bypass the modem’s usual security protections and provide the intruder with full remote access to the affected cable modem. Hackers have likely already identified the security lapse and have exploited it, with some suspecting access key generators are already available allowing the user to automate attempts to reach affected modems on a significant scale.

Unfortunately for consumers, neither ARRIS or cable operators appear to be rushing to update the affected firmware to eliminate the backdoors, having waited more than two months just to acknowledge Rodrigues’ report.

For now, customers using these devices exclusively as cable modems are least likely to suffer a serious security lapse. More at risk are consumers relying on these three models as both a cable modem and home gateway providing Wi-Fi access around the home. Theoretically, hackers could use one or both exploits to gain access to your home network. Consumers using one of the affected models should contact their local cable company and ask them to replace the device with an alternative, preferably from a different manufacturer.

At least one cable company reported they are working with ARRIS to correct the flawed firmware, but early efforts have not been successful. It may be prudent for some security-conscious customers not to wait.

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