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Mediacom Merry Christmas Rate Hike: Naughty/Nice, You’ll Pay More in 2012

Phillip Dampier December 6, 2011 Competition, Consumer News, Mediacom, Public Policy & Gov't, Video Comments Off on Mediacom Merry Christmas Rate Hike: Naughty/Nice, You’ll Pay More in 2012

Mediacom is announcing broad price increases for many of its customers scheduled to take effect on Dec. 15.  Most cable-TV subscribers will pay $2-3 more a month for basic cable, an additional $2 a month for Cinemax and Showtime, and $2 extra a month for “Digital Plus” cable service.  To add insult, the paperless bill credit that used to knock $1 off your bill if you chose not to receive a mailed billing statement is also being eliminated.

Lee Grassley, Mediacom’s chief lobbyist, delivered the company line about the rate increase in letters mailed to subscribers.  In essence, he blamed everyone but Mediacom for the rate hikes, and in poetic language one normally doesn’t get from a cable company rate increase notification:

As our nation struggles to pull itself out of what has been called the Great Recession, we recognize that these are challenging times for the hardworking men and women living in the communities that we serve.

[…] Over the past few years, many broadcasters have used their monopoly powers to demand 100%, 200% and even 300% rate increases during contract negotiations.  This has driven up cable and satellite rates and forced American consumers to pay billions of dollars for “free” over-the-air television.

The problems with sports programming are equally alarming.  One look at the skyrocketing rights fees announced with recent deals and it is easy to see that the marketplace for live televised sports is out of control.

[…] Contrary to public perception, cable companies are reluctant to raise video prices because when we do, we lose subscribers.  Mediacom does not make money when we raise video rates, since we remit virtually every penny of the increase on to programmers.  In fact, over the last three years, our programming cost increases were more than double our video revenue increases.

Since the programming community has been unwilling to exercise even the slightest measure of self-restraint when it comes to reigning in their spending or increasing their price demands, Mediacom has taken the fight to Washington.

Mediacom as new-found-friend fighting for lower cable rates comes across as ironic, at best, to Stop the Cap! reader Noel, who lives in Mediacom’s Iowa footprint.

“This is the same cable company who pocketed rate increases annually for as long as I’ve been a subscriber, and if they can’t raise the price of the television service, they’ll just make it up on the broadband side,” Noel writes.  “They have their nerve complaining about monopolies.”

Noel points out the local station retransmission consent fees are a more recent phenomenon, and Mediacom rate increases in prior years were the same or higher.

“I think they are realizing there is an absolute maximum people in Iowa can afford for cable, and years of rate increases have allowed all of the players to assume they can slice a bigger piece from that pie for themselves, and we’re tapped out,” Noel adds.

Noel called Mediacom and threatened to cancel service and received a nice consolation price: customer retention pricing normally reserved for new customers.

“I have a year reprieve, but rest assured I will start dropping things after the deal expires at these prices.”

[flv width=”480″ height=”290″]http://www.phillipdampier.com/video/KCCI Des Moines Mediacom Rate Increases 11-28-11.flv[/flv]

KCCI in Des Moines covers Mediacom’s rate increases and the reaction from local residents who will have to pay more for cable service.  (2 minutes)

Maine Madness: Time Warner Cable’s Mandatory Digital Upgrade Still Irking Customers

Phillip Dampier December 5, 2011 Broadband Speed, Consumer News 2 Comments

Time Warner Cable’s progression towards all-digital cable continues to spread across Maine as customers in Albion, Augusta, Belgrade, Benton, China, Clinton, Farmingdale, Gardiner, Hallowell, Litchfield, Manchester, Monmouth, Mount Vernon, North Vassalboro, Readfield, Richmond, Rome, Sidney, Vassalboro, West Gardiner and Winthrop lost many of their analog channels last week.

But customers losing AMC, Animal Planet, Cartoon Network, CKSH, CHLT, CNBC, E!, EWTN, GAC, Hallmark Channel, HGTV, History, HSN, INSP, NECN, Ovation, QVC, SyFy, Shop NBC, TCM, TNT, and USA also provoked the loss of something else: patience.

“Cable TV is the only service I pay for that increases my bill and frustration at the same time,” says Augusta Stop the Cap! reader Jeff E. Smith.  “The digital adapter Time Warner sent me was defective right out of the box, and two of my neighbors were also sent defective units that never powered on,” Smith writes.

Time Warner Cable is dramatically reducing the analog cable lineup to make additional room for new digital HD channels and faster broadband speeds.  The company is supplying palm-sized digital adapters for subscribers who don’t have a digital set top box on every television.  Although free until 2014, the boxes will carry a monthly fee of $0.99 each after that.

“The upgrade gives them the chance to cram on more channels we don’t want and more expensive broadband, and yet we have to eventually pay for the equipment,” Smith says. “And it doesn’t even work right.”

Smith’s neighbors have discovered patience-testing lines at some Augusta-area cable stores as customers rushed to obtain the equipment they assumed they didn’t need.

“The neighbor’s mother-in-law doesn’t understand how to use OnStar in her car, so it was no surprise she found out she needed the equipment when most of her favorite channels disappeared,” he adds.  “Time Warner really overestimated the level of understanding customers would have about this after buying new digital-TV’s a few years ago.”

Jim has several suggestions for Time Warner to adopt before the digital upgrade begins its progression across the country:

  1. The equipment should be free of charge and included with your regular monthly service.  You can’t realistically expect to buy Time Warner Cable service without a box for every set after the digital conversion is complete, so just include the equipment;
  2. A better and less intrusive way to manage this would be to install a single digital converter on the outside of the home or in a closet which could provide analog service to every TV not already equipped with a set top box.  That would mean no annoying box on every set in the home and would probably cost less (in time, money, and aggravation);
  3. People assume they are ready for digital cable because they bought digital-ready TV’s after analog television service ceased. Most customers will not read generic letters carefully.  It would be better to send people customized letters telling them they specifically will need the equipment because records indicate additional outlets were installed in the home without corresponding cable set top boxes attached to them.  What are the chances customers are using CableCARD units these days?  Chances are, they’ll need the DTA adapters, so make this clearer.
  4. Don’t you dare put customers through this, increase broadband speeds, and then slap usage caps or usage billing on us!

Newspapers Teach Readers How to Cut Cable Cord, Even If It Means Going Underground for TV

Watch these shows online, if you want to risk some uninvited guests.

There is nothing new about news outlets promoting tips and tricks to lower your monthly cable bill.  We publish similar stories ourselves here on Stop the Cap!  But some newspapers take things further, openly advocating you disconnect your cable service for good and watch everything online.  This week, we found one even willing to publish website addresses that skirt copyright laws and take online video underground.

The State Press encourages Arizona State students to thumb their noses at Cox Communications’ latest offer — cable television for $29.99 a month, good for six months (regular price $70).  Instead, they encourage, take your viewing online to Netflix and Hulu — the former for movies, the latter for television series.  But with cable companies and Hollywood studios conspiring to tackle the growing problem of cord-cutting, new restrictions are finding their way to fans of both websites, including waiting periods, limited series runs, and higher subscription fees.  This means war to the State Press:

There is a dark side to these two corporate entities, however. In their attempt to slowly weasel their way into your pockets a bit more, Hulu has gone Plus and Netflix has divided their packages, limiting your viewing. Hulu has seemingly said, “You can pay a little more to watch it the day after, right? No? Well, then I guess you’re waiting five more days for that recent episode,” while Netflix has exclaimed, “Unlimited to our choosing! You’re going to have to pay up if you want every movie out there.” So we must retaliate and go a little dark ourselves.

The author advises readers there is a way around the roadblocks — visiting a website already shut down once by copyright enforcement action (but has since resurfaced with a Chinese web address), providing a list of links to other websites that host copyright-infringing videos you can’t watch on Hulu or Netflix.

While the author of the State Press story may not realize it, a brief test visit to the “pirate-streamed site” opened the door to some nefarious extras.  With the help of Malwarebytes’ Anti-Malware, we stopped unwanted browser toolbars, various intrusion attempts, and even a few pieces of actual malware that wanted in on the party.  Without the most robust security software, visits to websites with underground video content can wreak havoc, and there are not that many TV shows worth watching to make that headache worthwhile.

The website owner disclaims responsibility from just about everything:

“[This website] does not host, provide, archive, store, or distribute media of any kind, and acts merely as an index (or directory) of media posted by other webmasters on the internet, which is completely outside of our control. Whereas we do not filter such references, we cannot and do not attempt to control, censor, or block any indexed material that may be considered offensive, abusive, libellous, obnoxious, inaccurate, deceptive, unlawful or otherwise distressing neither do we accept responsibility for this content or the consequences of such content being made available.”

We encourage you to exercise caution visiting websites that are willing to skirt copyright laws.  Up-to-date antivirus and spyware detection software when visiting is a must at all times.  Many of these sites stay in business selling ad space to anyone, and those ads can come with unwanted malware that can find its way onto your computer long after the viewing is over.  Be careful.

Time Running Out on New England Cable/Phone Customers Seeking Storm-Related Credits

Phillip Dampier November 29, 2011 AT&T, Cablevision (see Altice USA), Charter Spectrum, Comcast/Xfinity, Consumer News, Cox, Dish Network, Public Policy & Gov't, Video Comments Off on Time Running Out on New England Cable/Phone Customers Seeking Storm-Related Credits

Storm damage in eastern Massachusetts. (Courtesy: WGBH Boston)

The northeastern United States got more than its fair share of severe storms these past few months.  Remnants of Hurricane Irene caused severe flooding, heavy rainstorms that followed didn’t help.  But one of the worst of all was the Halloween Nor’easter that left serious wind damage in some areas, heavy snowfall in others, leaving customers without power, phone, cable, and broadband service for days, if not weeks.

Telecommunications companies including Cablevision, Charter Communications, Comcast, Cox Communications, Dish Network, Time Warner Cable, and Metrocast Communications of Connecticut are under fire across the region for not providing automatic service credits for impacted customers.  Charter and Comcast are both facing a class action lawsuit filed last week by a Massachusetts law firm that accuses the cable operators of “gouging” their customers by not automatically crediting affected subscribers for lost service.

Jeffrey Morneau of Springfield, Mass. law firm Connor, Morneau & Olin says up to 1.2 million Charter and Comcast customers were without service, but the companies will only provide credits on a case-by-case basis, and only if customers request them within a short time after the outage occurred.

“If you pay for a service and you don’t get it, the company can’t keep your money,” Morneau said.

Stop the Cap! readers in Massachusetts and New Hampshire report Comcast will grant reasonable service credit requests, assuming you get through to ask for them.

“Hold times are epic,” reports Tom Turlin, a Comcast customer in Massachusetts.  “I managed to get my credit by using their web contact form instead.”

Most providers require consumers to request credits for outages within 30-60 days of the service interruption, and time is running out for Nor’easter credits.

“Most people think they will only get 50 cents back so why bother, but actually with today’s huge cable bills, credits can be substantial,” Turlin says. “I received almost $15 back on my bill.”

Only AT&T, Connecticut’s largest phone company, agreed to automatically credit customers the company determined were without service for at least 24 hours.  Customers who don’t receive credit automatically can appeal to the company for credit they believe they are entitled to receive.

Here’s how different companies are responding:

AT&T: “We will give U-verse TV customers in Connecticut who experience a service outage for longer than 24 hours a pro-rated credit,” AT&T said. “In addition, we will voluntarily give similar credits for U-verse Voice and U-verse High Speed Internet service customers who experienced a service outage for longer than 24 hours. Customers are not required to take any action: the credits will be applied automatically on the customer bill for impacted customers within the next several billing cycles.”

Cablevision: “While state law provides for consumer credits for qualifying outages for cable service only, Cablevision has been providing a credit to customers on an individualized basis for all their services,” Cablevision said. “Customers will be credited when they notify us that they had a service outage. We are extending our normal period to request refunds to 45 days from the date of the storm.”

Charter: Customers must call or visit the cable company offices in person to request service credit.  “We are providing credit to customers for the entire time they were without service, from the time they lost power to the time their Charter services were fully restored, and we are providing credit for all services,” Charter said.

Comcast: “In order to receive a credit, a customer must contact Comcast and identify the time period during which they did not have access to Comcast services,” Comcast said.

Cox: “We need our customers to call us after their service is restored to report that they were without Cox services, and for how long,” Cox said. “We then credit their accounts from the time of the service outage until service was actually restored.”

DISH Network: The satellite provider is waiving service and equipment fees for consumers who need their equipment realigned, reinstalled or repaired due to the storm. “DISH subscribers who indicated that they were without service due to the storm were provided a credit for their time without service,” DISH said. “In addition, DISH subscribers who needed to suspend their service due to storm damage were allowed to do so at no charge.”

MetroCast Communications of Connecticut: It will provide customers with a refund on their next invoice after contacting the company. “The credit equals a prorated amount of the affected customer’s monthly charges for all MetroCast services, calculated based on the number of days during which such services were interrupted, and are included in the customer’s next invoice,” MetroCast said.

Time Warner Cable: Customers must contact the cable company online, by e-mail or phone and request credit for the number of days they were without service.  Most service credit requests that can be verified are granted within hours, and will appear on the next billing statement.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/WSHM Springfield City councilor Comcast disagree on cable rebates 11-21-11.mp4[/flv]

WSHM in Springfield covers the ongoing dispute city officials have with Comcast, who is refusing to automatically provide storm credits to customers impacted by the October Nor’easter.  (2 minutes)

Time Warner Cable’s Rate Hikes Reach the Carolinas: Still $58/mo for Standalone Broadband

Winston-Salem Time Warner Cable customers can expect to pay around 4% more for cable service in 2012.

Time Warner Cable’s annual rate increases have now reached the Carolinas.

The company is mailing letters to customers that announce rate hikes for off-contract clients in the $2-4 a month range, including price increases for Road Runner broadband that will now cost between $49.45-$57.95 a month.

“Our new prices reflect dramatically higher programming costs, additional programming and features, and continued investment in our network and customer service,” said Time Warner spokesman Scott Pryzwansky. “Time Warner Cable invested more than $350 million in capital in the Carolinas over the past year to make our network even more robust and to enable our customers to get the services and features they want.”

The company also invested heavily in lobbying lawmakers to keep community-owned broadband competition at bay, helping pass a measure through the Republican-controlled legislature that makes municipal broadband competition much more unlikely.

The result is another year of unfettered rate increases for customers in cities like Winston-Salem:

  • Cable TV increases from $10.23 to $11.49 for broadcast basic, $64.99-$69.49 for standard analog service, $80.99-$85.49 for digital cable;
  • Broadband increases from $47.95 to $49.45 for customers who also have digital cable, $52.95 to $55.95 for customers with any other tier of cable TV, $57.95 for standalone broadband service;
  • Telephone rates are unchanged.

Customers can avoid some of the price increases through creative bundling, threatening to take your business elsewhere, or by signing up for alternative providers:

  1. Customers on discounted promotional packages, retention deals, and term contracts will not face the rate increases until their promotional rates or contract expires;
  2. If you are unhappy with the rate increase, consider calling Time Warner and telling them to cancel your service 1-2 weeks from today’s date.  Then wait for them to start calling you with promotional “win-back” offers that deliver at least a year of substantial savings off regular rates;
  3. If you are a broadband standalone customer, consider signing up for Earthlink under their six-month promotion for just under $30 a month.  You will continue to be billed by Time Warner Cable and receive the same speeds and service with two exceptions: no PowerBoost (a temporary speed increase during the first few seconds of downloading), and you lose your Road Runner e-mail address (which you are not actually still using, are you?)  Get a Gmail account, don’t worry about speed gimmicks, and save $28 a month.  At the end of six months, sign up for Time Warner’s Road Runner service under their promotional rate, which is around $30 a month for a year.  Total savings over the 18 month combined promotional rate term: $504!

More than two years after Time Warner introduced DOCSIS 3 speed upgrades in New York, Time Warner is finally completing broadband upgrades for their customers in the Carolinas.  The latest cities scheduled to get the company’s Wideband (50/5Mbps) and Road Runner Extreme (30/5Mbps) services are Wilmington, Jacksonville and Morehead City. The new services will be available by early 2012.

Most customers in eastern North Carolina and parts of South Carolina still get Standard service speeds of 10Mbps download, 512kbps upload.  After the upgrade, a boost in upstream speeds to 1Mbps for Standard service customers is expected.

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