The Delmarva Peninsula

Four towns are better than one when trying to negotiate improved service and better terms for Delmarva Mediacom cable customers.

Bethany Beach, Millville, Ocean View and South Bethany are considering joining forces to renegotiate their agreements with Mediacom, all coming up for renewal within a year of each other.

Councilman Jay Headman from South Bethany is among those advocating the joint effort to get a better deal from Mediacom, which provides cable service across many parts of the peninsula encompassing Delaware and parts of Maryland and Virginia.

Mediacom serves many parts of the Delmarva Peninsula with cable service

“If we could come together and negotiate as one, we could save money and have more clout,” Headman told The Daily Times. “We know for a fact that it’s smart to negotiate together. When we have a larger clientele, (Mediacom) has to deal with us, and we can split the cost for the lawyer.”

While the four communities would find a competing provider launching service on the peninsula a useful tool to increase competition, they don’t necessarily believe its likely.  Many residents of the towns are part-timers, staying for extended summer vacations.  In fact, getting a better deal for part-time residents who wish to subscribe for part of the year is one of the concessions they hope to obtain from Mediacom.  The towns are also seeking a shorter agreement — the current franchise is for a 15-year term — and better service in general.

Vice Mayor Carol Olmstead, of Bethany Beach, told the newspaper the town is allocating $5,000 in next year’s budget to cover legal fees related to the negotiation.

“I think everyone who has cable TV would like better service,” she said. “Why not join together? I think the feeling is there’s strength in numbers.”

Last week, Stop the Cap! considered the challenges America faced developing universal electric service — so much of that debate echos in today’s struggle to provide universal broadband service.

Although hindsight allows us to recognize the benefits universal electrification has brought Americans over the past 100 years, the transformational benefits from universal broadband are bit more mysterious because many applications haven’t even been envisioned yet.

IBM is a proponent of two revolutionary concepts universal broadband makes possible: The Internet of Things and The System of Systems.  The company produced a video to consider the implications of improved connectivity and how that will impact our daily lives:

[flv width=”641″ height=”380″]http://www.phillipdampier.com/video/IBM – The Internet of Things.flv[/flv]

IBM Social Media produced this video explaining The Internet of Things, one of the concepts made possible with universal broadband. (5 minutes)

Now imagine the implications if the platform which makes this all possible remains in the hands of a broadband duopoly intent on securing big profits earned from high pricing, limits on service, and other cost-controlling measures.  Transformational broadband — for the right price as long as you don’t use too much, brought to you by big cable and telephone companies.

AT&T last week announced it has increased its quarterly dividend by 2.40% to 42 cents per share, the 26th year the company has increased dividends quarter after quarter.

On February 1st, something else will increase by up to 10 percent: their U-verse rates.

Depending on the package selected, rates will increase $3-5 dollars a month for most cable-TV packages, $5 for many slower speed broadband products, and $5 a month for its unlimited calling package.  New customers will find some savings to offset the increases if they opt for faster broadband products: Max (12 Mbps) and Max Plus (18 Mbps) both decrease $10 per month, to $45 and $55 respectively, and the new 24Mbps Max Turbo service drops from $75 to $65.  Existing customers will not see price increases on broadband service, but they won’t enjoy any price decreases either.

Standard retail pricing as of February 1, 2010 will be: U-Basic- $19/mo., U-family-$54/mo., U-100-$54/mo., U200-$67/mo., U200 Latino-$77/mo., U300-$82/mo., U450-$112/mo.

New U-verse TV customers will now face a one-time service activation fee of $29.

AT&T said that the “modest price adjustments that we’re making are far outweighed by the additional value we’ve added to U-verse TV in the last year alone.”

Customers have expressed mixed reactions to the price increases and decreases on AT&T’s U-verse forums.  A far bigger problem for many of them are the company’s “bait and switch” tactics, alleged by several angry customers.  From rate quotes $30 less than what actually shows up on customer bills to referral rewards that never materialize to rebate nightmares, AT&T customers in several parts of the country report ongoing problems getting what they were promised.