Rep. Avila (left) with Time Warner Cable's top lobbyist (right, back turned). Photo by: Bob Sepe of Action Audits

Rep. Marilyn Avila (R-Time Warner Cable) is living up to her much-deserved reputation as a shill for North Carolina’s largest cable company as she continues her campaign to wreak havoc on community-owned broadband networks and services.

Well-placed sources tell Stop the Cap! either Avila has an evil twin running around impersonating her, or she is saying one thing to a public audience while doing something completely different in private.

In a closely coordinated effort with the state’s top cable lobbyists, Avila met last Friday to negotiate promised protections for existing community-owned broadband networks that would otherwise be destroyed by her bill, H129, written by the state’s Big Telecom companies.

Both Reps. Avila and Julia Howard told us their word was their bond.  “The last thing that we want to do as a state is to harm one of our cities after they entered into the business,” Avila said to members of the Public Utilities Committee.

Howard expanded on her own promise: “The objective is to protect the cities that have already gone into the business.  It is our intent to carve out these cities and hold them harmless.  My word is my bond, and I don’t hear anybody snickering.  But when I say it I mean it, as the senior chair of finance, that is my pledge.  Before it heads into finance there will be a PCS that is satisfactory to everybody.”

Apparently those bonds were issued by Lehman Brothers, because they have lost all of their value to the people of North Carolina.  Nobody feels like snickering over such a serious betrayal of trust, especially when Howard’s definition of “everybody” is limited to lobbyists for the telecommunications industry.  Your consumer needs are irrelevant.

Last Friday’s meeting was once again a stage play from Time Warner Cable and their sidekick, the much-smaller CenturyLink.  After the cable company laid down the law to a stunned audience of representatives from communities across the state, fooled into thinking they were there to discuss an honest compromise, things went from bad to worse.

“It literally got down to the point where the cable company was dictating terms about what cities can and cannot do with their networks, even discussing which streets the networks would be allowed to serve,” our source tells us.

Avila’s stubborn streak was on full display, as she rejected proposal after proposal.

What about public private partnerships with full exemptions for pre-existing networks?

Rep. Avila's Message to North Carolinians: Live with what you've got or go without.

Not on Big Telecom’s approved list, so rejected out of hand, even after offering that she agreed with the concept.  Her reasoning?  She wants to go with her original bill.

The result of the one-sided discussion was two pages of legislative word jumbling in the form of a substitute amendment.  The word salad delivers substantially no real change to Avila’s original bill.  It contains virtually all of the same onerous provisions guaranteed to destroy community broadband networks, taking the state’s reputation for being a good credit risk with it.  It also delivers red meat to an industry meme “community broadband networks are business failures.”  Now you know why.

We predict Avila will use the farcical affair to claim her substitute amendment was the product of a “hard-fought compromise” with cities and providers.

In fact, it represents nothing more than a shameful broken promise to the citizens of North Carolina.  Their interests are completely secondary to Avila and her legislative allies, willing to listen to a telecommunications industry prepared to hand out campaign contributions to enact their agenda.

The collateral damage of Avila’s struggle to eliminate better broadband and keep competition to a bare minimum cannot even be measured yet. Should Avila’s bill become law, the clear message sent to would-be entrepreneurs is that North Carolina values their cable and phone companies over the needs of entrepreneurs contemplating the next generation of digital economy businesses.  Ms. Avila’s message to them, and to residents who want better broadband: live with what you’re getting from my friends or go without.

Many will choose a third option — avoiding setting up shop in a state where a handful of providers maintain a comfortable duopoly delivering the least amount of service for the highest possible price.

Mossberg

Walt Mossberg, a columnist for the Wall Street Journal, delivered some stinging remarks about how large telecom and media companies deliver broadband services and programming to North Americans.

“We really suck at broadband,” Mossberg complained during opening remarks at Beet.TV’s first executive summit held at the Embassy of Finland in Washington.  “We have terrible, terrible broadband.”

“The typical consumer either has been lured into broadband by a DSL service that in Finland would not count as broadband — 768kbps is not broadband,” Mossberg said.  “If [the government] adopted a regulation not allowing Verizon to call that crap broadband, it would help.”

Mossberg added that cable modem service in the US and Canada is so slow, it is the object of pity and pathos in countries like Japan and Korea, and we’re overcharged for it.

[flv width=”480″ height=”388″]http://www.phillipdampier.com/video/Verizon Should Stop Calling DSL Broadband 2-17-11.flv[/flv]

Mossberg’s comments come as part of a discussion about the online video revolution, which he says is being hampered by copyright controls, outdated advertising models, and broadband providers delivering sub-standard service.  (8 minutes)

Phillip "Swimming Upstream... slowly" Dampier

I spent the better part of today finding, assembling, and finally uploading the audio and video content covering Canada’s ongoing hearings about Internet Overcharging.  Locating and editing the content took about two hours, writing the piece to accompany it took another hour, and then everything  s   l   o   w   e   d  down from there.

Uploading several hundred megabytes of audio and video, included in today’s articles, was by far the most cumbersome part of the operation.  In all, it took nearly four hours to upload a handful of video and audio files, and that saturated our cable modem to the brink of un-usability.

While most providers concentrate upgrades on boosting download speeds, upload speeds have remained remarkably consistent — and painfully slow, for several years now.

Time Warner Cable, which provides our Internet connection, tops out at just 1Mbps for uploads locally, and it is slower during peak usage times.  Contrast that with 2Mbps in more competitive cities (with 5Mbps now common wherever DOCSIS 3 technology has been deployed).  Still, at least it is better than the 384kbps residents in upstate New York contended with for a decade earlier.

Cable modem technology is built on the premise that you will download far more than you will need to upload, and speeds are provided accordingly.  DSL service from some phone companies has managed to keep up with upload speeds… barely, if only because many cable providers have largely ignored the upstream component.

But as the Internet and social media become a more interactive part of our lives, we increasingly need to give as much as we get, and our Internet Service Providers continue to let us down in too many cases.

The one exception is fiber-to-the-home service, which can deliver synchronous (identical upload and download) speeds to their customers.  Community-owned fiber networks continue to be the kindest to their customers, thinking of speed equality as an advantage, not a marketing option that commands a high price.  Many of these networks are owned and operated by local governments — you know, the people we’re told never do anything right.

Yet in many instances they alone have the prescience to recognize broadband speeds have a direct impact on efficiency — at home and at work.  Many are building networks that leverage as many megabits per second they can get.  Why?  Because they can.  Such a response is scoffed at by many cable and phone companies, most of whom claim you don’t need that kind of speed.

For those of us without access to such state-of-the-art networks, we’ll have to continue setting our sights considerably lower.  Time Warner will finally bring 50/5Mbps service to Rochester early this year.  As far as they’re concerned, we should be glad to have it.  It will cost just shy of $100 per month on a standalone basis.  If we lived in Chattanooga, Tenn., home of EPB, the municipal broadband provider would sell us 50/50Mbps service for nearly $20 a month less — $79.99 per month.

Prime Minister Harper's government is facing an open revolt by Canadian consumers over Internet Overcharging.

A full-scale revolt among consumers across Canada has brought the issue of Internet Overcharging to the highest levels of government.

A spokesman for Prime Minister Stephen Harper said the government is very concerned about a decision from the Canadian Radio-television and Telecommunications Commission that has effectively forced the end of unlimited use broadband plans across the country.

Both the Liberal and NDP parties have made a point of protesting the CRTC decision, which happened under the Conservative Party’s watch.  Harper’s Industry Minister Tony Clement stepped up his remarks this morning which hint the government is prepared to quash last week’s decision by the CRTC, which has already forced price increases for broadband service across the country.

“The decision on its face has some pretty severe impacts,” Clement told reporters in Ottawa after NDP and Liberal critics in the House of Commons repeatedly pounded the government on the issue of so-called “usage-based billing.”

“I indicated the impacts on consumers, on small business operators, on creators, on innovators. So that’s why I have to work through a process, cross my T’s, doc my I’s. When you’re dealing with a legal process, that’s what you have to do. But I will be doing that very, very quickly, and getting back to the prime minister and my colleagues very, very quickly,” said Clement.

As of this morning, more than 286,000 Canadians have signed a petition protesting the Internet Overcharging schemes.

The protest movement has now been joined by small and medium-sized business groups who fear the impact new Internet pricing will have on their businesses.

Richard Truscott, with the Canadian Federation of Independent Business, normally a group that prefers less government action, said his members are demanding a stop to the pricing schemes before they get started.

“The vast majority of small businesses rely on reasonably-priced Internet service to conduct their operations,” he said. “Generally this is the sort of thing that hits the most innovative sector with higher costs.”

Most cable and phone companies are lobbying Ottawa politicians to keep the new usage-based billing schemes, and several are pretending the protest movement doesn’t exist.

AgenceQMI, a cable-company owned wire service, is also coming under fire for misrepresenting Clement’s positions on the pricing schemes in a news report issued yesterday.  The wire service claimed Clement supported the CRTC’s position, something Clement adamantly denied this morning.

The National Post, a self-described conservative newspaper, this morning published an editorial supporting usage-based pricing, claiming a handful of users were creating a problem that light users should not pay to solve.  But many readers leaving comments on the article strongly disagreed, claiming the newspaper is out of touch.

Although the regime of usage caps, speed throttles, and overlimit fees have been in place with most major providers for at least two years, the culmination of several events in the last six months have brought the issue to the boiling point:

1. The arrival of Netflix video streaming, which provides unlimited access for a flat monthly fee;
2. The ongoing limbo dance among several providers who are reducing usage allowances when competitive threats arrive;
3. The increase in providers now enforcing usage limits by billing consumers overlimit fees that spike broadband bills;
4. Recent examples of bill shock, which have left some consumers with thousands of dollars in Internet charges.

Bill Shock

Kevin Brennan, a graphic designer who works from home and downloads large files from clients, was first hit with extra charges in November, which cost him $34 above his usual Shaw bill.

“I’d never been contacted about going over before,” he told the Calgary Herald, adding he was also over in December. “Thirty-four dollars doesn’t seem like much, but over the course of a year it adds up.

“What concerns me, outside my own business, is the lack of innovation people will be able to do. And it makes Shaw a monopoly. . . . if you watch TV or the Internet, you pay more to them.”

Shaw reduced its usage allowance for customers like Brennan late last year from 75 to 60GB on its most popular broadband plan.  It also now enforces a $2/GB overlimit fee.

John Lawford, counsel for the Public Interest Advocacy Centre, told the Herald the concern isn’t just that smaller companies can no longer offer unlimited plans, which reduces competition.

“The phone and Internet and cable companies of the world are playing it both ways. They’re saying, ‘Well, there’s these big data hogs that are using too much, we’ve got to punish them to keep the price down.’ On the other hand they’re buying media companies so they have stuff to shove down the wires, which doesn’t count toward your cap,” Lawford said. “That’s anti-competitive.”

Most Canadian media companies are now tightly integrated with large telecommunications companies.  CTV, Canada’s largest commercial network, is now owned by Bell, the country’s biggest phone company.  Rogers, Shaw, and Videotron — the largest cable companies in Canada own cable and broadcast stations, newspapers, and magazines.  They also control cellphone companies, Wi-Fi networks, and have interests in satellite providers as well.

When a competitor like Netflix arrives to challenge the companies’ pay television interests, turning down consumers’ broadband usage allowances discourages cord-cutting.

The CRTC’s decision to allow Bell to charge usage-based pricing for wholesale accounts was the final death blow to unlimited Internet according to several independent service providers, because virtually all of them rely on Bell — a company that received taxpayer subsidies to build its broadband network — for access to the Internet.

Canadian Parliament

TekSavvy, a company that used to offer unlimited use plans, can do so no more.  In a statement to customers, TekSavvy laid blame on regulators for being forced to increase prices.

“From March 1 on, users of the up to 5Mbps packages in Ontario can expect a usage cap of 25Gb (60Gb in Quebec), substantially down from the 200Gb or unlimited deals TekSavvy was able to offer before the CRTC’s decision to impose usage based billing,” read a statement sent to customers.

TekSavvy spokeswoman Katie do Forno said the CRTC decision is a disaster for Canadian broadband in the new digital economy.

“This will result in unjustifiably high prices and a reduction in innovation,” said do Forno. “I think it’s going to change behavior about how people use the Internet.”

The company underlines the point by including “before and after” pricing schedules on its website, an unprecedented move.  Shaw, western Canada’s largest cable company, was heavily criticized for trying to hide their reduction in usage allowances.

Ottawa residents are planning direct action to protest the decision this Saturday.  Shawn Pepin is organizing the protest rally.

“What they’re doing right now looks like a cash-grab scheme, and people aren’t going to take it,” he said.

[flv width=”640″ height=”388″]http://www.phillipdampier.com/video/CBC News Pay As You Go Tony Clement 2-1-11.flv[/flv]

Minister of Industry Tony Clement was pressed by CBC Television about the Harper Government’s stand on Internet Overcharging.  The CBC asks why Canadians are paying some of the world’s highest prices for broadband and why Clement is finally getting involved.  Watch as he mysteriously avoids stating the obvious: Canadians are in open revolt and politicians from competing parties are taking their side.  (9 minutes)

Haggling for a better deal from your telecommunications provider is beginning to resemble buying a car.

Less than a day after writing up our experiences with the Customer Retention Department of Time Warner Cable, there have been new developments.

Because our account was configured for a disconnect, a Time Warner retention specialist called us, this time from Albany, N.Y.  His role — to win us back as a Time Warner customer.  His office formerly called customers who turned in their equipment and canceled service, but now that the company is losing more cable-TV customers than it adds, they are now trying to stop disconnects at all costs.

Incredibly, this high-level office was authorized to provide deals even Time Warner’s regional office could not touch.

The best deal we could negotiate with the Buffalo office included the company’s triple play package, Road Runner Turbo, one DVR box and one digital set top box for $132 a month.

That was until we received a call this morning with an offer that blew that out of the water — $79.95 a month for the company’s triple-play package including a year of free DVR service. Putting the two packages together to compare pricing, Albany’s Time Warner office was willing offer that same package for $106.90, plus tax.

That’s a difference of $25 a month.

That’s quite a difference.

But then, on cue, Time Warner proved our earlier point about confusing and conflicting information being thrown at customers.

Minutes after agreeing to that offer, which would have cut some additional red tape from the earlier deal, we were called back and told the deal fell apart, at least temporarily.

It seems customers who agree to an earlier offer end up locking themselves out from something even better.  Because we worked with another retention specialist who partially entered an order into the system, and despite the fact the company called us with something better, they reneged on the better offer.

“I can’t even begin the order,” we were told.  “As long as a pending order is in place, there is nothing we can do.”

We found it odd the company would call us with an offer we couldn’t get.  We were then told that office is authorized to make offers to customers who:

• downgrade to one service;
• have a pending disconnect order;
• actually disconnect service.

We asked if we pulled out of our earlier retention deal, would we then be qualified to proceed with his?  He repeated the three conditions and said he’d love to offer us something but until one of those conditions were in place, he could not.

Hint. Hint.

It’s remarkable Time Warner would offer customers one deal they insist was the best available price, only to have another employee cut $25 off the top without breaking a sweat.  It’s quickly reminding me of my last car buying experience — always a major headache.  So many tricks, traps, and games.

We’ll be bringing this whole matter up with the company shortly.

In the meantime, we’re going to modify our advice to customers searching for a better deal.  Call and schedule a disconnect or downgrade of your service two weeks out, tell the agent you are not prepared to discuss a retention deal, and then wait for them to call you a few days later.  Ours originated from the Time Warner Sales Center at 1-877-726-0712, for those who check caller ID.

Ask about the triple play $79 offer that includes a year of free DVR service.

Oh, and about the free “DVR service.”  We learned Time Warner no longer considers the “service” the same as the “box.”  This word salad means customers pay about $8 and change for the DVR hardware, but get the “service” that let’s you record shows on the equipment for free — a $3 value.

We told you it was confusing.

[Updated: 1:02pm ET — We just spoke with Time Warner Cable, who apologized for the confusion over pricing and the follow-up retention call we received.  Time Warner Cable will honor any offers made by any of their agents, so with the assistance of a supervisor, we were able to take advantage of this offer after all.  They even threw in free Turbo service for a year, free Showtime, and gave us a “whole house DVR” at a special rate, bringing the total out of the door price to around $116 a month, including all equipment.  When Road Runner Extreme (30/5Mbps) service arrives, that will run an additional $10 per month.  The entire ordeal netted us almost $60 a month in savings, more if we didn’t upgrade to the “whole house DVR.”]