Time Warner Cable is letting victims of recent devastating storms spend their time and energy worrying about rebuilding their lives and not ponder the loss of company-owned cable boxes, modems, and other equipment.

Unlike several smaller cable companies that have hounded customers for cable equipment destroyed in storms, fires, and other natural disasters, Time Warner is signaling they are waiving any lost/damaged equipment fees when tragedy strikes.

Many cable operators expect to recoup lost or damaged equipment from proceeds of insurance claims, and relentlessly bill clients for the full value of equipment that may have melted in a fire or blown blocks away in a tornado.  While homeowner and rental policies traditionally cover this equipment, few customers are in a state of mind to worry about a DVR box or cable modem, and some may have to wait weeks or months for restitution from the insurance company.

Stop the Cap! reader Kathleen is now an extended guest at a Kentucky “extended stay” motel after her house was damaged by a tornado several days ago.

“I’m an organized person and I had my emergency planning kit ready to go, calling the insurance company, the utilities, and the cable company, among others, to make sure everything was documented,” Kathleen writes. “Our DVR box and cable modem are probably sitting in a field in southern Ohio right now, as the storm completely took away our family room.”

Kathleen originally was planning to write complaining Time Warner wanted several hundred dollars for the lost equipment because that is what the first representative told her.

“But 20 minutes after that call, a supervisor called us back and profusely apologized, telling us the representative was not supposed to charge for the lost equipment because of the storm,” Kathleen says. “They got themselves a lot more loyalty from me than that equipment ever cost them because they did the right thing by me and my family.”

Kathleen tells us Time Warner has stopped all charges on her account, offered her their good wishes for a recovery, and will waive any installation costs to get her service back up and running when repairs are complete.

“Following the horrific storms of last week, Time Warner Cable immediately suspended all credit and collections work in the area,” a spokesperson tells Stop the Cap! “Time Warner Cable has not and will not charge customers for lost or damaged equipment as a result of these storms.”

“It is why I will call Time Warner back when this is all over and will stick with them because they stuck with us,” says Kathleen. “Sorry AT&T.”

[Consumer Tip from Stop the Cap!: Every renter should always have renter’s insurance, which typically will cover damaged cable equipment. It’s very affordable and protects renters from losses. Many consumers believe landlords carry insurance which will protect them in the event of a natural disaster or fire, but those insurance policies protect the landlord’s property, not renters’ possessions.]

Motorola cable modem

A California federal judge has thrown out most of a class action lawsuit that charged Comcast with marketing broadband service plans without disclosing extra fees for cable modem equipment.

The head plaintiff, Athanassios Diacakis, claimed Comcast sold Triple Play promotions over the phone and in the media without mentioning customers would also have to pay additional fees to lease a cable modem.  Diacakis accused the cable operator of violating California’s tough false-advertising laws by not fully disclosing all fees and surcharges while explaining the promotion.

U.S. District Judge Saundra Brown Armstrong disagreed, however, dismissing most of the plaintiffs claims.  The judge didn’t declare Diacakis’ claims untrue, but ruled they were insufficiently documented to proceed to trial.

“The [amended complaint] fails to specify when or where Comcast advertisements were viewed, the content of those advertisements, or which of them in particular Plaintiff relied upon,” Armstrong wrote.

Diacakis is free to submit an amended complaint if he wishes to proceed with his class action case.

Comcast charges customers $7 a month to lease cable modem equipment, but invites customers to purchase their own cable modems to avoid rental fees.  Many customers do just that, choosing from several dozen approved models Comcast will provision for broadband customers.  The cost to purchase cable modem equipment ranges from $50-125 on average, depending on the cable modem selected.  It takes less than two years for purchased cable modems to effectively pay for themselves at Comcast’s current rental rate.

Time Warner Cable has quietly boosted the upload speed for Road Runner Turbo customers in Rochester, N.Y., from 1Mbps to 2Mbps.  Stop the Cap! reader Michael was the first to inform us about the free upgrade, and we’ve since been able to confirm it.  Road Runner Turbo customers need to reboot their cable modems for the speed increase to take effect.

Road Runner Turbo is available for an additional $5-10 a month on top of Standard Road Runner service pricing (ask about available promotions to receive a lower price).  It brings Turbo service speeds in this area to 15/2Mbps.

Michael is happy with the speed upgrade now that it finally arrived.

“It only took years to go from 1 to 2Mbps,” he says.

Update 9:27pm ET:  Kevin writes to inform us the download speed for Turbo has also increased — to 20Mbps.  Road Runner Basic is now 3/1Mbps, Road Runner Lite is 1/1Mbps.  The only speed remaining unchanged is for the most popular tier — Standard, which remains 10/1Mbps. We use Time Warner’s 30/5Mbps service here, which makes it difficult to test some of these speeds ourselves.

Providers establishing Internet Overcharging schemes like usage caps, so-called “consumption billing,” and speed throttles that force subscribers into expensive upgrades are planning for a growth industry in data consumption.

According to new research from a firm that specializes in market strategies, data usage is going up and fast.  Providers that seek to monetize that usage could win enormous new profits just sitting back and waiting for customers to exceed the arbitrary usage caps some companies are now enforcing with their customers and take the proceeds to the bank.

iGR says the demand for connectivity inside the home is at an all-time high, with the biggest growth coming from wireless Wi-Fi connections.  The more devices consumers associate with their home broadband connection, the greater the usage.

That is one of the reasons why providers are increasingly supplying customers with free or inexpensive Wi-Fi routers, to make the connections quick, simple, and potentially profitable down the road.

Comcast's Wireless Gateway: A Future Money Machine?

Comcast announced this week it would supply a free 802.11N “home gateway” free of charge to every new customer signing up for Blast!, Extreme 50 or Extreme 105 broadband service.  In addition to wireless connectivity for every device in the home, the Xfinity Wireless Gateway also includes a built-in cable modem and phone service adapter.  Time Warner Cable strongly encourages new DOCSIS 3 customers use their equipment for Wi-Fi service as well.  AT&T has included its own wireless gateway with U-verse for a few years now.

The offer is hard to refuse.  Nearly 80 percent of homes use wireless access, connecting cell phones, tablets, laptops, personal computers, game consoles, and even set top boxes that let customers stream video entertainment to their television sets.

iGR found average usage in heavily-connected homes at the all time high of 390GB per month.  By 2015, that will rise to more than 440GB per month.  Both numbers are well in excess of average consumption limits by providers like Comcast and AT&T, which top out at just 250GB per month.  Of course, not all Wi-Fi usage is based on traffic from the Internet.  Some users stream content between computers or devices within the home.  But the research is clear — usage is growing, dramatically.

Video is by far the biggest factor, according to iGR.  Their report, U.S. Home Broadband & WiFi Usage Forecast, 2011-2015, says the appetite for downloaded and streamed video is only growing.

Matt Vartabedian, vice president of the wireless and mobile research service at iGR, says home Wi-Fi has become inextricably woven into the personal, social and business fabric of today’s life.

Broadband is increasingly seen by consumers as an essential utility, as important as the home wired telephone, safe drinking water, and reliable electric and natural gas service.

Providers are positioning themselves to take advantage of the growth market in data by establishing what, at first glance, may seem to be generous (often inflexible) usage limits that remain unchanged years after introduction.  While only a handful of consumers may cross those provider-imposed thresholds at first, within a few years, it will be more uncommon to remain within plan limits, especially if you watch online video.

Arris' C4 CMTS

In the broadband speed race, no technology can deliver consistently fast upload and download speeds and offer ease-of-upgrades like fiber optics, but most of us won’t have direct access to the technology for years to come.  This week, the cable industry will attempt to suggest fiber upgrades may be unnecessary as it shows off some of the latest broadband technology at the industry’s trade show in Chicago.

Arris, a cable broadband equipment manufacturer, plans to demonstrate just how many “cable channels” it can bond together to build an enormous broadband pipeline, which the company claims will achieve “proof of concept” speeds as high as 4.5Gbps downstream and 575Mbps upstream.

Such a demonstration is impractical for actual use with today’s cable systems, because they lack enough free channel space to construct a pipe that large.  But the cable industry is betting heavily on DOCSIS 3 technology to keep them in the game as other technology threatens to win future online speed races.

At the heart of Arris’ cable broadband platform is its C4 Cable Modem Termination System (CMTS). The latest iteration, called Release 7.4, increases support for bonded channels, allows cable operators to manage the IP video demands of their subscribers, and also includes additional “intelligent network” enhancements to manage different types of broadband traffic.

Cable modem broadband technology is based on a “shared network,” meaning every customer connected to an individual CMTS is sharing the same individual broadband pipeline.  Before DOCSIS 3 technology, the maximum “raw bitrate” of that pipe was generally fixed at around 40Mbps — speed/bandwidth shared with every customer wired into that equipment.  If just a handful of customers used their broadband connection at the same time, speeds were consistently fast and reliable.  But during peak usage, too many customers could place demands on that pipe it could not sustain, and speeds for everyone began to drop.

Since most customers didn’t come close to saturating their broadband connection, hundreds of families safely shared the same pipe without noticeable speed declines.  But as high bandwidth applications like online video and file sharing grew, network engineers had to plan on fewer customers sharing the same connection or regularly split some customers off an overworked CMTS.

DOCSIS 3 technology solves many of these problems by letting cable operators “bond” multiple cable channels together to create a much larger, although-still-shared, pipe.  Arris says design improvements in its latest c4 CMTS also help manage the traffic that crosses it in the most efficient way possible to maintain a consistent user experience.

Because fiber optic competitors routinely win the broadband speed race, cable operators have to counter aggressive marketing strategies they themselves have used against dial-up and DSL service from the telephone company.  Demonstrating high speed results, even when completely impractical to deploy, still helps the industry’s marketing efforts against the competition, and delivers fodder for industry lobbyists used to counter claims by broadband advocates that other countries are deploying more advanced broadband networks that allow North America to fall behind.