Time Warner Cable reports it has unleashed major broadband speed upgrades for a handful of communities in New York and Los Angeles and is now delivering speeds up to 300Mbps.

After overhauling its network and neighborhood nodes, residential customers in Costa Mesa and West Hollywood, Calif., Staten Island and the Woodside neighborhood of Queens, N.Y., should now be getting faster broadband speeds ranging from 50Mbps for Standard (formerly 15Mbps) to 300Mbps for Extreme (formerly 50Mbps) service.

“These significant speed increases and network enhancements will allow our Internet customers to get the most out of their TWC experience,” said Time Warner Cable CEO Robert D. Marcus. “With this service transformation, our customers can enjoy all the ways they use TWC Internet even better, including streaming video, downloading music and more.”

Time Warner Cable’s senior vice president for corporate development Mike Roudi said Time Warner Cable expects to roll out similar upgrades nationwide over the next two years. But Comcast may have other ideas if it successfully completes its merger with Time Warner Cable by this time next year.

The cable company’s progress in rolling out upgrades is not as fast as their new top broadband speeds. Time Warner only expects to reach 200,000 customers with the new speeds by the end of June. The next areas scheduled for upgrades include:

• California: Covina, Cypress, Hoover, Crenshaw District and Jefferson Park areas of Los Angeles;
• New York: Upper Manhattan and more neighborhoods in Queens and Staten Island.

Time Warner said it expects to complete upgrades in New York and Los Angeles by the end of this year. No timeline was provided to start upgrades in other cities. Affected Time Warner customers will be contacted about replacing their existing DOCSIS 2 modem and getting set-top boxes for the all-digital television conversion that accompanies the upgrade.

[flv]http://www.phillipdampier.com/video/TWC Talks About New Customer Experience in NY LA 4-22-14.mp4[/flv]

Time Warner Cable’s Mike Roudi explains how the cable company is upgrading customers for faster broadband speeds and all-digital television service in this company-produced video. (1:49)

A merger of Time Warner Cable and Comcast is just one more step towards undermining our democracy, worries former Secretary of Labor Robert Reich.

In a blog entry republished by Salon, Reich sees increasing evidence that the trust-busting days at the turn of the 20th century are long over, and Americans will likely have to relearn the lessons of allowing capitalism to run amuck.

It was the Republican Party of the 1890s that had the loudest voice in Washington protesting the concentration of business power into vast monopolies that had grown so large, they not only hurt consumers but threatened to undermine democracy itself.

Republican Senator John Sherman of Ohio was at the forefront of acting against centralized industrial power, which he likened to the abusive policies of the British crown that sparked America’s revolution for independence.

“If we will not endure a king as a political power,” Sherman thundered, “we should not endure a king over the production, transportation, and sale of any of the necessaries of life.”

The merger of Comcast and Time Warner Cable is just the latest example America is in a new gilded age of wealth and power that no longer prevents or busts up concentrations of economic power, observes Reich.

“Internet service providers in America are already too concentrated, which is why Americans pay more for Internet access than the citizens of almost any other advanced nation,” Reich argues.

Reich

Reich worries about the implications of allowing Comcast to grow larger, considering how much the current company already invests in Washington to get the government policies it wants:

• Comcast has contributed $1,822,395 so far in the 2013-2014 election cycle, according to data collected by the Center for Responsive Politics — ranking it 18th of all 13,457 corporations and organizations that have donated to campaigns since the cycle began. Of that total, $1,346,410 has gone to individual candidates, including John Boehner, Mitch McConnell, and Harry Reid; $323,000 to Leadership PACs; $278,235 to party organizations; and $261,250 to super PACs;

• Last year, Comcast also spent $18,810,000 on lobbying, the seventh highest amount of any corporation or organization reporting lobbying expenditures;

• Comcast is also one of the nation’s biggest revolving doors. Of its 107 lobbyists, 86 worked in government before lobbying for Comcast. In-house lobbyists include several former chiefs of staff to Senate and House Democrats and Republicans as well as a former commissioner of the Federal Communications Commission. Nor is Time Warner Cable a slouch when it comes to political donations, lobbyists, and revolving doors. It also ranks near the top.

Atwell-Baker

The Center for Responsive Politics expanded on the revolving door issue between the cable industry and the Federal Communications Commission that will be responsible for approving the Comcast-Time Warner merger.

It found one of the most prominent travelers to be former FCC commissioner-turned Comcast lobbyist Meredith Atwell-Baker. Always a friend of the cable industry, the Republican commissioner hurried out the door two years into her four-year term after getting a lucrative job offer from Comcast in June 2011. Despite claims she stopped participating in votes relating to Comcast after getting her job offer, she was a strong supporter of Comcast’s merger with NBCUniversal and favored the cable industry’s approach towards preserving a barely noticeable feather-light regulatory touch.

Atwell-Baker never contemplated her move might be seen as a conflict of interest, but then again, it represented nothing new for Washington. At the time, the only condition limiting her was a two-year ban on lobbying the FCC. But that does not apply to Congress so Atwell-Baker spent her time as Comcast’s senior vice president of government affairs trying to influence the House and Senate on 21 bills that could affect Comcast’s bottom line.

Just as shameless — Michael Powell, who served as FCC chairman during the first term of the George W. Bush Administration. After leaving the FCC he took the lucrative position of top man at the National Cable & Telecommunications Association, the cable lobby. The Center found several other former FCC employees heading into the private sector, advising Big Telecom companies on how to best influence regulators:

• Jonathan Adelstein, FCC commissioner from 2002 to 2009, became the president and CEO of PCIA: The Wireless Infrastructure Association in 2012;

• Rudy Brioche, was an adviser to former commissioner Adelstein before moving to Comcast as its senior director of external affairs and public policy counsel in 2009. Brioche was so valued by the FCC, in fact, that he was brought back to join the commission’s Advisory Committee for Diversity in the Digital Age in 2011;

• James Coltharp, who served as a special counsel to commissioner James H. Quello until 1997, is now a Comcast lobbyist;

• The same is true for Jordan Goldstein, who worked as a senior legal adviser to commissioner Michael J. Copps.

Once out of the public sector for several years, some lobbyists see their value deteriorate as they get increasingly out of touch with the latest administration in power. So several seek a refresh, temporarily leaving their lobbying job to return to public sector work.

The Center offered David Krone as a potential example. Krone formerly held leadership and lobbying positions with companies like AT&T, TCI Communications and the National Cable & Telecommunications Association. After 2008, he was hired by Senate Majority Leader Harry Reid (D-Nev.) to advise him on telecommunications matters. Today he is Reid’s chief of staff. If and when Reid leaves office, Krone can always join the parade of ex-Hill staffers back to the lucrative world of lobbying.

Will elected officials give a receptive ear to Comcast’s arguments in favor of its merger? Most likely, considering every member of the Senate Judiciary Committee (except deal critic Sen. Al Franken), has recently received campaign contributions from the cable giant, according to OpenSecrets:

Comcast PAC donations to Senate Judiciary Committee Democrats

• Chuck Schumer, New York: $35,000
• Patrick Leahy, Vermont, Chairman: $32,500
• Sheldon Whitehouse, Rhode Island: $26,500
• Chris Coons, Delaware: $25,000
• Dick Durbin, Illinois: $23,000
• Amy Klobuchar, Minnesota: $22,500
• Dianne Feinstein, California: $18,500
• Richard Blumenthal, Connecticut: $11,500
• Mazie Hirono, Hawaii: $5,000
• Al Franken, Minnesota: $0

Comcast PAC donations to Republicans

• Orrin Hatch, Utah: $30,000
• Chuck Grassley, Iowa, Ranking Member: $28,500
• John Cornyn, Texas: $21,000
• Lindsey Graham, South Carolina: $13,500
• Jeff Sessions, Alabama: $10,000
• Mike Lee, Utah: $8,500
• Ted Cruz, Texas: $2,500
• Jeff Flake, Arizona: $1,000

Reich thinks its time to return to the trust-busting days of President Teddy Roosevelt, who found the transportation infrastructure of the 20th century and the fuel used to power it increasingly controlled by a handful of giant players that abused monopoly power to set unjustifiable prices and suppress competition. Getting Congress, increasingly flush with now-unlimited corporate money, to agree to its own refresh a century later may prove a tougher sell.

If you have started to confuse the Washington Post editorial page with that of the Wall Street Journal, you are not alone.

Under the stewardship of Fred Hiatt, WaPo’s editorial opinions have grown increasingly anti-consumer and pro-corporate at home and decidedly neoconservative abroad.

It’s the same newspaper that wholeheartedly supported the merger of Comcast and NBC-Universal in 2010. Let’s check whether they called that one right:

Entities that compete with NBC-owned cable channels fear that Comcast will relegate them to hard-to-find channel locations. Consumer advocates warn that Comcast will use its newfound power to raise subscription rates and stifle new voices on television and the Internet.

The same newspaper reported last week that Comcast refused to let Back9Network, a golf oriented network in direct competition with Comcast-owned Golf Channel, on its cable systems.

For years, Bloomberg TV — in direct competition with Comcast-owned CNBC — has been stuck in Channel Siberia, in some areas like Chicago dumped between Comcast’s promotional “barker” channel and “Leased Access.” CNBC enjoys Ch. 29, certain to attract more viewers than Bloomberg’s Ch. 102.

As Stop the Cap! reported yesterday, no cable company raises cable television rates more than Comcast, blaming programming rate increases that in several cases originate with Comcast-owned cable networks.

Regulators should scrutinize the proposed merger but should be skeptical of the critics’ claims. […] Advocacy groups have been poor prognosticators of the effects of large media mergers.

The Washington Post’s editorial accuracy record has more than a few blemishes, from its 2003 declaration Colin Powell’s “evidence” of Iraqi weapons of mass destruction was “irrefutable,” to suggestions that a wedding of Comcast and NBC Universal wouldn’t hurt anyone because the FCC was ready to manage any problems without pesky mandates or overbearing pre-conditions.

The FCC already requires cable operators to deal fairly with competitors. Its rules would require Comcast to give competitors access to NBC content on “reasonable” and “non-discriminatory” terms. The company would also be required to negotiate in good faith about carrying non-NBC channels. Competitors who believed that they were harmed by unfair dealing could have their complaints adjudicated by the agency. Critics of the Comcast-NBCU merger claim that these mechanisms are ineffective and slow. But the breakdown of the complaint system should not be used as an excuse to impose onerous conditions on one company. Instead, critics should push for an overhaul of the system.

The Bloomberg case, now three years old, remains unresolved. That should tell readers something about just how quickly the FCC gets around to dealing with these kinds of complaints. Comcast has been able to argue its decision to bury Bloomberg and keep Back9Network off its cable systems are examples of ‘good faith, reasonable decision-making that doesn’t discriminate.’ It sued to quash Net Neutrality, critical for online video competition, and won.

The Post editorial amusingly insists that Comcast’s merger plans should not be interrupted because of an ineffective complaint system that can’t or won’t promptly deal with Comcast’s ongoing abuse of the very non-discriminatory rules the editors declare as a reason to support the Comcast-NBCUniversal merger.

Many of the same fears of domination and manipulation were raised with the 2001 merger of AOL and TimeWarner; that megadeal crumbled after a few years. Comcast and GE, which will retain a 49 percent stake in NBCU, should be allowed to proceed, and regulators should do their jobs and watch the newly formed company carefully.

Phillip “The Post’s Naivete is Showing” Dampier

The 2001 merger of AOL and Time Warner came at the last gasp of the dot.com boom. As the New York Times noted, “In May of 2000, the dot.com bubble began to burst and online advertising began to slow, making it difficult for AOL to meet the financial forecasts on which the deal was based. The world began moving quickly to high-speed Internet access, putting AOL’s ubiquitous dial-up service in jeopardy.”

The final unraveling of AOL Time Warner came about because the combined company, highly dependent on AOL (and its stock value), could not sustain its business model when nobody could figure out how to get paid for content in the online world. AOL’s dial-up Internet access business was also rapidly in decline as the country started moving towards broadband.

“The consumer has access to everything and now it’s going to be on a handheld device, so what I call the rolling thunder of the Internet started actually to eat its own, which was AOL,” writes the Times. “AOL was the Google of its time. It was how you got to the Internet, but it was using some old media business ideas that were undone by the Internet itself, and that’s why Google came along.”

The same sad story is not true for Comcast or Time Warner Cable (which was spun off from Time Warner, Inc. as an independent company as part of a restructuring in 2009.)

Both cable companies are in a better place than AOL-Time Warner:

• AOL relied on dial-up and reseller access to some broadband providers — neither sufficiently lucrative to sustain AOL’s dot.com-days value. Comcast/TWC own their own broadband networks;
• Verizon FiOS and AT&T U-verse are the only significant multi-city broadband competitors for the cable industry. U-verse remains challenged by its technological limitations and Verizon stopped expanding FiOS. Google Fiber has a totally insignificant market share and is likely to stay that way for several years. Google Fiber provides no competition in the northeast where Comcast and Time Warner Cable dominate;
• Comcast and Time Warner Cable both oppose community-owned broadband competition and Time Warner has successfully managed to push legislation virtually banning network expansion in several states;
• Comcast will both own and control the pipes and a significant amount of the content that crosses its broadband networks. At the time of the AOL-Time Warner merger, online video competition did not exist in a meaningful way.

Despite arguing its merger with Time Warner Cable would result in greater discounts for cable programming, America’s largest cable company Comcast is already receiving the best volume discounts available but is not passing the savings on to customers.

No major cable operator raised cable television rates more than Comcast, according to a new study from Free Press. Since 2009, Comcast jacked up prices on its broadcast basic television tier by 68 percent. Its more popular expanded basic cable service saw rate hikes amounting to 21 percent over the same time.

In contrast, Time Warner Cable actually cut rates for broadcast basic cable by 2.5% and raised expanded basic prices by 17 percent.

Comcast’s top lobbyist David Cohen has made clear the company’s prices are going to keep rising even if the merger is approved. That is likely to give Time Warner Cable customers sticker shock if Comcast takes over. Comcast is likely to pass whatever cost savings it realizes from the merger back to shareholders, not to customers.