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Mass. Taxpayers Give Comcast $4 Million to Expand Monopoly Broadband Service

Phillip Dampier September 11, 2018 Broadband Speed, Comcast/Xfinity, Competition, Consumer News, Public Policy & Gov't, Rural Broadband, Video, WiredWest Comments Off on Mass. Taxpayers Give Comcast $4 Million to Expand Monopoly Broadband Service

State and local officials gather to welcome Comcast’s state-funded service expansion in western Massachusetts. (From left to right: MBI chairman Peter Larkin; Carolyn Kirk, deputy secretary of the Executive Office of Housing and Economic Development; Michael Parker, senior vice president for Comcast’s Western New England region; Lt. Gov. Karyn Polito; Kevin Hart, former chair of the Montague Broadband Committee; and Rep. Stephen Kulik, D-Worthington.) (Image: MBI )

Two years after Republican Massachusetts Gov. Charlie Baker imposed a state-mandated “pause” on WiredWest, a collaborative, multi-community, publicly owned fiber to the home broadband network for western Massachusetts, Comcast is celebrating the introduction of expanded service in the towns of Buckland, Chester, Conway, Hardwick, Huntington, Montague, Northfield, Pelham and Shelburne, made possible with a $4 million taxpayer-funded grant to the nation’s largest cable operator.

While state officials continually questioned the economics of WiredWest, which by that time enrolled more than 7,000 eager would-be customers with $49 deposits, Comcast repeatedly declared it was “uneconomic” to provide broadband service to most rural western Massachusetts communities, at least until state officials paid the cable giant millions of dollars to reach 1,089 previously unserved homes and businesses in the nine towns, effectively giving Comcast a broadband monopoly.

“We were pleased to work with Comcast, who met the two-year timeline we set to deliver critical 21st-century broadband connections to more homes and businesses,” said Lt. Gov. Karyn Polito in a press release this week. She called the project “a great example of a public-private partnership” that would help resolve rural Massachusetts broadband problems.

WiredWest could not have met Polito’s two-year timeline, primarily because the collaborative has been blocked and ambushed repeatedly after Democratic Gov. Deval Patrick left office. State officials in Boston and the Massachusetts Broadband Institute (MBI), responsible for funding broadband initiatives, began a campaign of fear, uncertainty, and doubt about the project shortly after Gov. Baker took office, culminating in recommendations from then-MBI director Eric Nakajima imploring towns not to sign agreements with WiredWest, and eventually withholding critical funding from the broadband cooperative, questioning its governance and operating model.

It soon became clear Gov. Baker preferred an industry solution to the rural broadband problem, which caused broadband advocate Susan Crawford to slam the decision in early 2017.

“This is the story of a dramatic failure of imagination and vision at the state level: Governor Charlie Baker’s apparent insistence that Massachusetts relegate small towns to second-rate, high-priced, monopoly-controlled (and unregulated) communications capacity,” Crawford wrote. “It’s a slow-rolling tragedy that will blight western Massachusetts for generations.”

A divide and conquer campaign to peel off communities from the WiredWest project has been underway for years. Earlier this year, MBI dangled $3.1 million in grants available exclusively to Charter Communications to build out its network in several towns in the region. When asked if those taxpayer dollars would be available to publicly owned broadband projects like WiredWest, Peter Larkin, MBI’s current board chairman, responded “no.”

Despite the roadblocks, many of the communities staying loyal to the WiredWest concept have hired Westfield Gas & Electric’s ‘Whip City Fiber’ division to help design and construct their own fiber to the home networks, which will be superior to what Charter or Comcast plans for the region.

For exasperated residents and businesses who have waited more than four years for broadband, the politics and constant delays have become secondary issues to getting broadband… from somewhere. That may explain why Kevin Hart, who frequently objected to Comcast’s proposal to build an inferior copper-fiber network while chairing the Montague Broadband Committee, suddenly switched sides and praised the Comcast project this week for its timely introduction of broadband service.

In contrast, Montague Broadband Committee member Robert Steinberg in 2016 called Comcast’s cash infusion from taxpayers “corporate welfare.”

WWLP in Springfield reports several towns are getting expanded cable and broadband service from Comcast. (1:21)

Dolan Family Suing Altice USA Over Layoffs at Cablevision’s News 12 Operation

Phillip Dampier September 5, 2018 Altice USA, Consumer News, Public Policy & Gov't Comments Off on Dolan Family Suing Altice USA Over Layoffs at Cablevision’s News 12 Operation

The founding family of Cablevision is suing Altice USA, the company that acquired the suburban New York cable operator in 2016, for violating terms of the merger and committing fraud after laying off staff at Optimum’s News 12 operation.

This week the Dolan family — the founders and original owners of the suburban New York City cable system, filed a lawsuit in Delaware Chancery Court after learning the notorious budget-slashing executives at Altice laid off dozens of workers, with plans to cut many more, despite a merger commitment to maintain at least 462 workers at the news operation and accept financial losses of up to $60 million until 2020.

News 12 is unique in the downstate New York, New Jersey, and Connecticut area where Cablevision provides cable service, delivering “hyper-local” coverage of news events across individually programmed regional news stations, each targeting a different service area. News 12 was among the first cable operator-created local news operations, founded in 1986 by Cablevision founder Charles Dolan.

Over the next three decades, News 12 launched several unique channels to serve customers:

  • News 12 The Bronx/Brooklyn (shared studios/talent, but branded individually to each borough)
  • News 12 Connecticut
  • News 12 Hudson Valley
  • News 12 Long Island
  • News 12 New Jersey
  • News 12 Traffic and Weather
  • News 12 Westchester

Originally exclusive to Cablevision, News 12 has since been licensed for viewing by cable customers of Charter Spectrum, Comcast, and Service Electric across the Tri-State area. Altogether, News 12 reaches about three million viewers in the region.

The lawsuit is an effort to preserve the legacy of News 12 in light of Altice’s legendary reputation for layoffs and budget cuts.

Charles Dolan

“Unfortunately for the employees of News 12, Altice has disregarded its solemn promise to operate News 12” as promised, the lawsuit claims. “The purpose of today’s lawsuit is to enforce Altice’s contractual commitment to stand by the employees of News 12. The Dolan family intends to hold Altice accountable for commitments Altice made at the time of the sale and to protect the quality programming News 12 provides the community.”

The lawsuit alleges Altice USA already laid off 70 News 12 employees in 2017 and notified the Dolans last month it would begin laying off additional workers beginning this week, including popular News 12 anchor Colleen McVey. McVey is a co-plaintiff in the lawsuit.

The fate of News 12 was a key issue for the Dolan family during merger talks with Altice. At one point, the family demanded News 12 be spun off as an independent entity not controlled by Altice because of fears the company’s cost-cutters would decimate the news operation. Ultimately, the merger agreement contained language forbidding Altice from laying off News 12 staff except in certain circumstances. The Dolan family claims there is no justification for the layoffs. Altice disagrees, claiming the suit has no merit.

“Altice USA remains committed to offering meaningful news coverage, enhancing our news product for our local communities, and growing our audience,” an Altice USA statement said. “Under Altice USA’s leadership, News 12 remains the most viewed TV network in Optimum households. This achievement reflects the uniqueness of News 12’s hyperlocal content and the high value viewers place on news that is tailored to their neighborhoods. Local news has never been more important, and we’re proud that News 12 continues to be a trusted source of news and information in the communities we serve.”

AT&T and Comcast Successfully Slow Google Fiber’s Expansion to a Crawl

AT&T and Comcast have successfully delayed Google Fiber’s expansion around the country long enough to finish upgrades that can nearly match the upstart’s speedy internet service.

Nearly four years after Google Fiber announced it would offer gigabit speed in Nashville, most residents still have no idea when they will be able to have the service installed. Although officially announced in January 2015, Google has only managed to connect 52 apartment buildings and a limited number of single family homes in parts of Charlotte Park, Edgehill, Sylvan Heights, Sylvan Park, East and North Nashville, and Burton Hills. In all, less than 30% of the homes originally promised service actually have it, forcing Google to seek an extension from the Tennessee Public Utilities Board, which was granted last week.

Google’s problems originate within itself and its competitors. The company’s contractors have been criticized for damaging existing wiring, tearing up streets and yards, piercing water pipes causing significant water damage, and inappropriate microtrenching, which caused some of its fiber infrastructure in Nashville to be torn out of the ground by road repair crews.

But the biggest impediment keeping Google from moving faster is its two competitors — AT&T and Comcast, successfully collaborating to stall Google, giving the phone and cable company plenty of time to improve services to better compete. Both companies have also aggressively protected their customers from being poached by offering rock bottom-priced retention plans that some claim are only available in Google Fiber-ready areas.

“It’s still complicated,” Nashville Google Fiber Manager Martha Ivester told the Tennessean newspaper. “Building this fiber optic network throughout the whole city is a long process, and we never expected it wouldn’t be a long process. Obviously, we have had our challenges here.”

WZTV Nashville reports East Nashville residents were upset over road work related to Google Fiber that lasted for months, severely restricting residential parking. (2:37)

Google Fiber Huts – Nashville, Tenn.

Google’s ability to expand has been restrained for years, despite an informal alliance with city officials, primarily over pole attachment issues. Much of middle Tennessee is challenged by a difficult-to-penetrate layer of limestone close to the surface, making underground utility service difficult and expensive. Google’s negotiations with Nashville Electric Service (NES), which owns 80% of the utility poles in Nashville and AT&T, which owns the remaining 20%, have been long and contentious at times. To bring Google Fiber to a neighborhood, existing wires on utility poles have to be moved closer together to make room for Google Fiber. In real terms, that has taken several months, as AT&T and Comcast independently move at their own pace to relocate their respective lines.

An effort to use independent contractors to move all lines in unison — known as “One Touch Make Ready,” was fiercely opposed by AT&T and Comcast, claiming it would violate contracts with existing workers and could pose safety issues, despite the fact both companies use independent contractors themselves to manage wiring. Both companies successfully challenged One Touch Make Ready in court. A federal judge ruled that only the FCC could regulate poles owned by AT&T, while another judge ruled the city had no authority to order the municipally owned electric company to comply with One Touch Make Ready.

In August, the FCC issued an order allowing One Touch Make Ready to apply to AT&T’s poles, but NES still refuses to change its policy of relocating service lines one line at a time. The electric utility did not explain its reasons. AT&T also recently eased its position on One Touch Make Ready, but with NES still stonewalling, Google Fiber’s delays are likely to continue.

AT&T Fiber is being embraced by some customers tired of waiting for Google Fiber.

In the interim, both AT&T and Comcast have upgraded their respective systems. AT&T Fiber offers a fiber-to-the-home connection available in some areas while Comcast offers near-gigabit download speeds over its existing Hybrid Fiber-Coax (HFC) network. The upgrades have taken the wind out of Google Fiber for some tired of waiting.

Google has recently tried to speed progress using underground “shallow trenching” for installation, which buries cable as little as four inches deep. The company has amassed more than 24,000 permits to lay fiber under roads and yards in Nashville, which may speed some deployment, but for some it is too little, too late.

“It has been more than a year since we expected Google Fiber to serve us and they won’t tell us when they will get here, so I gave up and signed a two-year contract for AT&T Fiber service instead,” said Drew Miller. “Google Fiber just isn’t as exciting as it was when it was announced because other providers have similar service now and I get a better deal bundling it with my AT&T cellphone service.”

Attitudes like that obviously concern Google, as have reports that customers in Google Fiber-ready neighborhoods are getting very aggressively priced retention offers if they stay with their current provider.

“Comcast cut my bill from close to $200 to around $125 if I did not switch,” said Stop the Cap! reader Olivia. “I also got double internet speed. I don’t need a gigabit, so I stayed with Comcast. If I get close to their usage limit I will switch to Google then.”

Olivia notes her mother had exactly the same services from Comcast, but Comcast would not offer her the same promotion because she lived in an area not yet wired for Google Fiber.

With upgrades and aggressive customer retentions, the longer Google takes to string fiber, the fewer customers are likely to switch for what was originally “game-changing” internet speeds and service.

WTVF Nashville shows off Google’s microtrenching, burying fiber optic cables just a few inches underground. (2:36)

Pricing Comparisons

Google Fiber

  • Fiber 100: $50 a month, internet speeds up to 100 Mbps
  • Fiber 1000: $70 a month, internet speeds up to 1,000 Mbps, downloads and uploads
  • Fiber 100 + TV: $140 a month, internet speeds up to 100 Mbps, 155+ channels, premium channels (HBO, Showtime) available
  • Fiber 1000 + TV: $160 a month, internet speeds up to 1,000 Mbps, 155+ channels, premium channels (HBO, Showtime) available

AT&T

  • Internet-only: $50 a month for first 12 months, then $60 thereafter. $99 installation fee. Unlimited data costs an extra $30 a month. Early termination fee: $180 (pro-rated). Speeds range from 10 to 100 Mbps
  • Direct TV + Internet: $75/mo first 12 months, then $121. Customers pay a $35 activation fee and $30 a month for unlimited data. 155 channels. Speeds vary. 24 month contract required.
  • Internet 1000: $90 a month during first 12 months, then $100/mo thereafter. Bundled discount can reduce cost of package to $80-90. Up to 960 Mbps downloads. Early termination fee: $180 (pro-rated).

Comcast

  • Performance Starter: $20 a month, increases to $50 after two-year promotion. Up to 25 Mbps.
  • Blast!: $45 a month, increases to $80 a month after two-year promotion. 150 Mbps.
  • Gigabit (DOCSIS 3.1): $70 a month, increased to $140 after two-year promotion. 940/35 Mbps.

WSMV Nashville reports Google’s microtrenching has been problematic as road crews unintentionally dig up Google’s optical fiber cables mistakenly buried just two inches underground. (2:44)

Comcast Extends $9.95 Internet Essentials to Low-Income Veterans

Comcast announced this week it is expanding its $9.95 discount internet access program Internet Essentials to qualified low-income veterans.

“Veterans have stood up for our country, and for our way of life, and we believe it’s time for all of us to stand up for those veterans,” said David L. Cohen, Comcast’s senior executive vice president and chief diversity officer, speaking at a news conference Monday at a veterans housing complex under construction in Philadelphia. Cohen claimed the program’s expansion “will enable us to reach about a million low-income veterans.”

Comcast’s Internet Essentials

  • $9.95/month
  • 15/2 Mbps service
  • No activation fees and no equipment rental fees
  • Option to purchase laptop/computer for $149.99 + tax
  • Access to free internet training online, in print and in person
  • A free Comcast Wireless Gateway, delivering in-home Wi-Fi at no additional cost

Comcast requires all applicants, including veterans, to pre-qualify for the service with an application and agree to submit re-qualification paperwork annually. The cable company has carefully shielded its program from cannibalizing existing internet revenue by excluding almost everyone who currently subscribes to Comcast internet service or has a pre-existing past due balance. Applicants have to certify they have not had Comcast internet service for at least 90 days before submitting an application (not applicable to customers in the city of Philadelphia), must prove their low-income status by sending proof they are enrolled in one of several federal assistance programs, and prove their veteran status.

Qualified Assistance Programs

  • Medicaid
  • Supplemental Security Income (SSI)
  • Low-Income Home Energy Assistance Program (LIHEAP)
  • National School Lunch Program’s Free Lunch Program
  • Emergency Aid to the Elderly, Disabled and Children (EAEDC)
  • Supplemental Nutrition Assistance Program (Food Stamps or SNAP)
  • Federal Public House Assistance
  • Temporary Assistance to Needy Families (TANF)
  • Bureau of Indian Affairs General Assistance
  • Tribally-Administered Temporary Assistance for Needy Families (TTANF)
  • Food Distribution Program on Indian Reservations (FDPIR)
  • Head Start

In the seven years of its existence, Comcast has only managed to enroll six million people in the program, a fraction of those that would otherwise qualify who live in Comcast service areas. Most critics blame Comcast’s onerous qualification requirements for the relatively low enrollment.

Bryan Mercer, executive director of West Philadelphia’s Media Mobilizing Project, told The Inquirer Internet Essentials offers “speeds that don’t even meet the FCC definition of broadband” and a “series of restrictions” that disqualify those who already manage to scrape enough money together to buy Comcast internet access without the benefit of the Internet Essentials discount program. Mercer says the restrictions that insist customers go without Comcast internet for at least three months and never have an outstanding bill are particularly hard for many low-income people to meet.

“That is a real roadblock to someone trying to keep their utilities affordable and their families online,” Mercer told the newspaper.

About 70 percent of low-income veterans presently lack internet access. In Philadelphia, the nation’s poorest large city, the contrast between super-wealthy Comcast and the thousands of poverty-level residents is striking. Because of its large low-income population, only about 75% of Philadelphia’s residents have internet access. Detroit, which has seen major depopulation and is no longer deemed a “large city,” is even worse, with only 60.9% of city residents signed up for internet.

Nearly half of all adults with an income below $30,000 don’t have home broadband service or a traditional computer, a 2017 Pew Research study found.

Comcast has been testing expansion of its Internet Essentials program, which originally only targeted families with school-age children, with new qualifying groups to boost subscriber numbers:

  • Low-Income Seniors: (SSI, Medicaid, and other low-income program participation required). Only available in: Atlanta, Boston, Detroit, Fresno County, Calif., Hartford County, Conn., Houston, Miami-Dade County, Fla., Palm Beach County, Fla., Philadelphia, San Francisco, Santa Clara County, Calif., and Seattle.
  • Housing Assistance: Everywhere Comcast is available. Enrollees have to prove they receive qualifying housing assistance.
  • Internet Essentials Philadelphia: Only available in Philadelphia, this program offers less pre-qualification restrictions, but maintains proof of low-income requirements to enroll.
  • Community College: Available only to those enrolled in a participating two-year community college in Illinois or Colorado, and receive a Pell Grant.

Comcast was required to offer and finance Internet Essentials as a deal condition for approval of is 2011 acquisition of NBCUniversal. Although that deal commitment expired in 2014, Comcast has voluntarily extended it since then, but reserves the right to change or discontinue the program at any time.

New Hampshire’s Attorney General Resolves Comcast and Consolidated Communications Complaints Quickly

Frustrated New Englanders that can’t get anywhere dealing with Comcast or Consolidated Communications’ customer service are getting fast fixes in New Hampshire by taking their complaints to the Consumer Protection and Antitrust Division of the attorney general’s office.

Jim Boffetti, in charge of that division, says his office receives 4,000 written complaints and 7,000 calls a year about consumer issues, a not insubstantial number from residents upset with their local cable and phone company.

New Hampshire is dominated by Comcast for cable service and Consolidated Communications for telephone service. Boffetti told The Laconia Daily Sun the two companies are familiar to staffers, responsible for more than 250 complaints for the phone company since Consolidated took over for FairPoint last year and 561 “racked up by Comcast” since 2009. Boffetti’s theory of how these companies handle consumer complaints is partly based on wearing customers down.

“The hassle factor is enormous,” he said. “It’s just the way these people do business.”

Boffetti doesn’t believe the number of complaints is unusual either, “considering the business that they’re in.”

Boffetti

Although the New Hampshire regulator cannot usually intervene to set prices, change conduct, or force resolutions, most telecommunications companies fear riling up state or federal regulators. Those government officials can potentially return “the favor” of years of arrogance and condescension when a company needs state or federal approval of a merger or permitting issue.

Only a small percentage of consumers realize they can file complaints with private groups like the Better Business Bureau, state officials like an attorney general or telecommunications/utility regulator, and federal agencies like the FCC. In every case, companies assign their best representatives to handle those complaints in an effort to protect their reputation.

When consumers file complaints with the New Hampshire attorney general’s office, the office forwards them to a designated person or department at the provider. Comcast and Consolidated assign senior level customer service departments to specifically handle these types of complaints. The representatives are given wide latitude to settle problems quickly and quietly — often refunding large sums of money, extending generous service credits, resolving ongoing service problems, or waiving service fees that ordinary customer service representatives insist cannot be done. Most of the time, complaints are settled in the customer’s favor.

“Usually it all gets worked out,” Boffetti said. “They’re pretty responsive to the complaints. They make an attempt to resolve it.”

When Karen Jacobs was offered a better deal by Consolidated Communications, she jumped at the opportunity to get cheaper and faster internet access for her home in Moultonborough. What originally cost her $104 a month was supposed to be $74 after she was sold an improved bundled service package. On the installation date, nobody from Consolidated showed up. Instead, she was told her order ‘was stuck’ in the system. To get it ‘unstuck,’ Jacobs would ‘have to pay a $300 one-time fee,’ something never mentioned by the original representative.

Complaints against Comcast are usually resolved in the customer’s favor, as this report from the New Hampshire attorney general’s office shows.

Jacobs asked the representative to waive the fee because it was never mentioned. The representative refused, and even lectured Jacobs about how little Consolidated was regulated by the state government and could do as it pleased.

“He didn’t care,” she said of one particular representative. “It was like, ‘Too bad.’”

Despite claims the $300 fee was “company policy,” it was news to Jacobs.

“That was never, ever, ever, ever discussed anywhere in the conversation,” she said. “It’s lousy.”

Jacobs had not yet filed a formal complaint, taking her story to the media instead. But similar complaints of hidden/surprise installation and activation fees are very common, and once forwarded by a regulator, are usually resolved by either waiving or refunding the charges.

Customers are gratified they get to keep their money, but remain annoyed at companies who “forget” to disclose important terms and conditions like fees as they try to seal the deal.

Customers can Google their own state’s attorney general and by searching for consumer complaints, can usually file their own complaint online in just a few minutes. In New Hampshire, residents can file a complaint on the website or mail it.

New England residents can also reach out directly to Comcast or Consolidated’s special consumer complaints departments directly by mail:

COMCAST – NEW ENGLAND
Executive Customer Care and Communications
Post Office Box 6505
Chelmsford, MA 01824-0905

CONSOLIDATED COMMUNICATIONS OF NEW HAMPSHIRE, VERMONT, AND MAINE
State Regulatory Matters
800 Hinesburg Road
South Burlington, VT 05403

Comcast provides cable service throughout northern New England and Massachusetts. Consolidated Communications provides landline service predominately in New Hampshire, Vermont, and Maine.

The New Hampshire attorney general’s consumer protection hotline is 1-888-468-4454 or (603) 271-3641, weekdays from 9 a.m. to 3 p.m. You can also contact them by email at: [email protected]

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