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Comcast Using Ethically Disgraced Ralph Reed to Advise on Time Warner Cable Merger

That "paragon of virtue" Ralph Reed is helping Comcast with their merger problems.

That “paragon of virtue” Ralph Reed is helping Comcast with their merger problems. (Image: Mark Fiore)

The owner of left-leaning MSNBC has engaged a religious conservative activist to handle consulting work on Capitol Hill for a cable company so hated, even ardent pro-business conservative Republicans are holding their noses contemplating a merger that would make Comcast even larger.

Ralph Reed has tried to keep his head down during his 8-10 year “association” with Comcast, whose executives make regular major contributions to Democratic Party candidates and play golf with President Barack Obama.

Reed’s ethically challenged past has made him notorious in Washington, and many well-connected lobbyists avoid publicly associating with the man who helped the disgraced lobbyist Ralph Abramoff rip off Native Americans for $100 million. Even worse, while Abramoff and Reed were working to rob various tribes blind in Mississippi, Alabama, and Louisiana,  the next mission would be protecting off-shore sweatshops in the Northern Mariana Islands, a U.S. possession that lacks American labor law protections. Workers were paid less than half the American minimum wage, had their movements restricted, were sexually exploited, and churned out products for corporations that could still claim they were proudly “Made in the U.S.A.”

Both men kept it ‘klassy with a k’ with respect to their paying clients. Abramoff routinely called  tribal leaders “monkeys” and Reed wanted to use his new found expertise in corporate lobbying to enrich himself. Reed sent e-mail to Abramoff recommending himself as a corporate lobbying asset, because of his ability to mobilize hundreds of thousands of religious conservative households through an extensive network of politically active pastors willing to use religion to advance the agendas of his corporate clients.

“I need to start humping in corporate accounts,” Reed wrote Abramoff, noting he could quickly create anti-gambling astroturf groups morally opposed to allowing new gambling ventures on religious grounds. In reality, his opposition was actually designed to protect Abramoff’s existing clients — Native American tribal casinos — from facing new competition.

comcast twcReed is theoretically trying to promote the Comcast merger with skeptical political and religious conservatives who have heard loud complaints from constituents about the cable company. But one of Reed’s self-proclaimed selling points is that he prefers to move in the shadows.

“I want to be invisible. I do guerrilla warfare,” Mr. Reed told a Virginia newspaper in 1991. “I paint my face and travel at night. You don’t know it’s over until you’re in a body bag.”

Had Reed kept a lower profile, his association with Comcast might have never seen the light of day.

“It’s widely known because Ralph’s been on conference calls,” one insider said. “It has been at least eight years; it’s been some time.”

Century Strategies, the Atlanta-based firm Reed owns, has been on retainer with Comcast for eight or 10 years, the source said.

ralph reed bio

Unfortunately for Comcast, Reed has appeared at one too many microphones lately, spouting off at various conservative functions including the annual Faith & Freedom Coalition, where he loudly compared the Supreme Court’s decision in favor of same-sex marriage as a historical mistake as explosive as the 1857 Dred Scott decision. That was the one where the court ruled that all blacks — slaves as well as free — were not and could never become citizens of the United States. How could I have missed the similarities!

Comcast didn’t respond to a request for comment about its reported engagement of Reed’s company. Century Strategies also didn’t respond to a request for comment from the Washington Blade, which exposed the Reed-Comcast link, to confirm the reports.

Much of what constitutes official paid lobbying vs. an informal conversation is just part of the murky world of Beltway lobbying. So far, Reed has not filed as an official lobbyist.

Aereo Declared Illegal by Supreme Court; 6-3 Decision is Certain to End Streaming Venture

aereo_logo

“We did try, but it’s over now.” — Barry Diller, a major investor in Aereo

The multibillion dollar broadcasting conglomerates that control over-the-air television and most cable networks got everything they wanted today from a 6-3 decision in the U.S. Supreme Court that declared Aereo, an independent provider of online over-the-air television streams, illegal.

The court’s liberal justices joined Chief Justice John Roberts and moderate Anthony Kennedy in a complete repudiation of the legality of Aereo’s business model — selling over the air television signals received by individual tiny antennas and streamed over the Internet — without seeking permission from the stations involved. In a sweeping ruling, the court found that no matter the technology involved, any effort to resell access or copies of television programs without the permission of the copyright holders is illegal. “We conclude that Aereo is not just an equipment supplier,” Justice Breyer wrote in the opinion. “We do not see how the fact that Aereo transmits via personal copies of programs could make a difference.”

Aereo CEO and founder Chet Kanojia quickly released a statement declaring the decision “a massive setback for the American consumer.”

“We’ve said all along that we worked diligently to create a technology that complies with the law, but today’s decision clearly states that how the technology works does not matter. This sends a chilling message to the technology industry,” Kanojia said. “We are disappointed in the outcome, but our work is not done. We will continue to fight for our consumers and fight to create innovative technologies that have a meaningful and positive impact on our world.”

That is news to Barry Diller, perhaps Aereo’s biggest investor. He has said for months if Aereo loses in the Supreme Court, the service will be shut down. He repeated that today on CNBC.

“We did try, but it’s over now.” Diller said.

Image: Wall Street Journal

Image: Wall Street Journal

Reed Hundt, former FCC chairman under the Clinton Administration, said despite the fact the ruling may inconvenience Aereo subscribers, the court wasn’t wrong in its decision.

“Aereo has very little chance surviving in the business and Barry Diller got his hands caught in the regulatory cookie jar,” Hundt said. “You can’t use technological tricks to bypass [cable network] rules and regulations. I think that’s a very reasonable decision.”

Observers worried about the impact the Aereo case might have on ancillary services unintentionally caught up in any broad legal language, but the court appeared to carefully avoid those complications.

The ruling leaves antenna manufacturers unaffected because antenna users simply capture over-the-air signals for reception in the home without paying the kind of ongoing subscription fees Aereo charged its customers.

The decision also protects the legality of cloud computing, DVR recordings, and other new technologies not directly related to the lawsuit. “We agree with the Solicitor General that “[q]uestions involving cloud computing, [remote storage] DVRs, and other novel issues not before the Court, as to which ‘Congress has not plainly marked [the] course,’ should await a case in which they are squarely presented,” Breyer wrote.

The court’s liberal wing shared Breyer’s opinion. Ruth Bader Ginsburg, Sonia Sotomayor and Elena Kagan all voted in favor of broadcasters including Walt Disney (ABC), Comcast (NBC), CBS Corp., and FOX.

Conservatives slammed the majority ruling against Aereo, claiming the court was bending over backwards for Hollywood and giant broadcasting conglomerates. Justice Antonin Scalia’s dissent ripped the majority’s ruling, claiming it would “sow confusion for years to come.” Scalia predicts there will be plenty of new litigation before the courts on issues related to online transmission of copyright works as a result of today’s decision.

Although Aereo was still pre-registering customers as of this afternoon, that isn’t likely to stay true for much longer. Aereo’s only bid to stay alive is to seek licensing agreements with the stations it distributes over its service. With broadcasters’ strengthened hand, it is unlikely they will be receptive to pricing agreements that would allow Aereo to continue providing service for $8 a month. Major cable and satellite operators are signing retransmission consent agreements with volume discounts that run above $1 a month per subscriber for each television station in a local area. In most cities, that would amount to at least $5 a month, but Aereo will likely face even higher costs because it lacks access to discounts.

[flv]http://www.phillipdampier.com/video/CNN Supreme Court rules against Aereo 6-25-14.mp4[/flv]

CNN attempts to explain the meaning of the Aereo case to its less-informed viewers with mixed success. But the story explains why this is relevant to cord cutters. (4:41)

[flv]http://www.phillipdampier.com/video/Bloomberg Supreme Court Rules Against Aereo in Landmark Case 6-25-14.flv[/flv]

Bloomberg News reports the Aereo case was a decisive victory for programmers who now have a strengthened hand asking for more compensation during retransmission consent negotiations with cable and satellite providers. (1:55)

[flv]http://www.phillipdampier.com/video/Bloomberg Aereo Ruling Gets Positive Response from Broadcasters 6-25-14.flv[/flv]

Broadcasters called today’s victory “pro-consumer” but that is open to debate. Bloomberg News digs deeper into what this case means for DVR and cloud storage services as well. (5:26)

[flv]http://www.phillipdampier.com/video/Bloomberg Aereo Violating Broadcaster Copyrights Stocks Up 6-25-14.flv[/flv]

Wall Street is rewarding big television networks and station owner groups with higher stock prices after winning a decisive victory against Aereo, Bloomberg reports. (2:35)

A Better Alternative to Comcast’s Internet Essentials’ Tricks & Traps: EveryoneOn’s Discount Internet Access

internet essentialsWhile regulators sort through the thicket of fine print that keeps hundreds of thousands of families from qualifying for Comcast’s $9.95 Internet Essentials affordable Internet program, a much simpler offer has emerged that doesn’t work overtime to protect Comcast’s broadband revenue from being cannibalized. In short, regulators don’t need to cut deals to expand programs like Internet Essentials in return for saddling residents with America’s “worst cable company.” There are alternatives.

EveryoneOn markets Comcast’s Internet Essentials where appropriate, but the group also gives low-income residents without school-age children other options that won’t require a $45 billion merger deal to expand.

EveryoneOn’s website asks visitors to enter their zip code to determine eligibility for discounted Internet access in neighborhoods with below-average standards of living. In western New York, we found few programs available in wealthy suburban zip codes, but most city neighborhoods were eligible for substantial discounts off wireless Internet access:

Mobile Beacon, like FreedomPop, uses the Clear WiMAX network at the moment.

mobile beacon coverage

Mobile Beacon relies on Sprint’s Clear 4G WiMAX network.

Mobile Beacon utilizes Sprint’s Clear 4G WiMAX network at the moment, and does not throttle or limit customer usage. The $10 rate plan is by far the cheapest around for unlimited access, but speeds are limited to 1Mbps. That may not be a problem for many Clear WiMAX users who can’t get speeds faster than that anyway.

howItWorksModemFreedomPop offers 1GB of monthly data for free, after a $49 setup charge.

Both offers are readily available to public with almost no pre-qualifications. The biggest downsides to both plans include Clear’s very limited WiMAX coverage area and the fact Sprint is gradually decommissioning its WiMAX network.

To remain committed to low-income Internet access, Sprint will offer free wireless broadband service to 50,000 low-income students nationwide.

Microsoft is also actively promoting EveryoneOn’s affordable Internet service offers to school districts nationwide as a solution to their home connectivity problems.  Microsoft will also help deploy Windows devices below $300 to classrooms across the country. Schools can buy Windows 8.1 Pro at a discounted rate and get “Office 365 Education” at no extra cost after they buy Office for teachers and administrators.

New York regulators are getting an earful from public interest and non-profit groups about solving a digital divide that is critical to the state’s economic future. The Internet is no longer merely a nice thing to have. It’s now essential:

  • A 2013 Jobvite survey revealed 94% of recruiters use or plan to use social media to find potential employees.
  • Fifty percent of today’s jobs require technology skills, and this percentage is expected to grow to 77% in the next decade.
  • The new GED test is being offered only on a computer, requiring all taking the test to have a level of comfort with technology;
  • The typical US household saves approximately $8,000 per year by using the Internet, according to an industry-backed Internet Innovation Alliance report.
  • 21% of uninsured Americans  do not  use the Internet, making it impossible for them to use the online health exchanges.
  • A Pew Internet Report revealed 59% of caregivers with internet access say that online resources have been helpful to their ability to provide care and support for the person in their care.
  • The New York Times reported Internet access and literacy allows seniors to stay socially connected to friends and family, maintain their health and increase longevity.

[flv]http://www.phillipdampier.com/video/Mobile Beacon Nation Case Study.mp4[/flv]

Mobile Beacon isn’t just powering income-challenged Americans. The 4G wireless broadband project is also connecting communities, schools, and social service agencies in communities under economic pressure. Mobile Beacon won’t put cable customers under more economic pressure from skyrocketing cable bills, either. It’s not owned by a cable operator. (13:21)

Comcast Makes Executive’s One-Man Show Mandatory for All Subscribers; There Will Be a Test

Phillip Dampier June 19, 2014 Comcast/Xfinity, Consumer News, Video 2 Comments

[flv]http://www.phillipdampier.com/video/The Onion – Comcast Required Viewing 6-18-14.flv[/flv]

You just knew it could be true, but things haven’t got that bad yet. The Onion parodies Comcast’s control freak nature of their customer relationships, redefining “Must-See” TV. (1:35) 

Comcast Bills Non-Customer $29 a Month for 13 Years of Cable Service She Never Got from Comcast

Phillip Dampier June 19, 2014 Comcast/Xfinity, Consumer News, Video 1 Comment
A non-customer

A non-customer

Comcast’s customer service isn’t just bad — it can be downright predatory.

An 88-year old South Florida woman living on Social Security promptly paid her Comcast cable bill of $29 on time each month for 13 years. The only problem is, she isn’t a Comcast Cable customer. The condominium where she lives switched to a different provider back in the year 2000, but that didn’t deter Comcast from continuing to bill her month after month eventually totaling $4,500 for non-service.

When she finally discovered the error, she ran into the Comcast “Don’t Care” Bears in the company’s customer service department.

“Give me my money back! Because I paid for them for so many years, and they’re rich. They are rich, and I’m poor,” she told a Miami TV station. Comcast told her they don’t give those kind of refunds.

Perhaps it was her fault for not recognizing the fact she was making payments in error. Comcast first offered a $20 “courtesy credit” and then stopped negotiating after making their final offer of a six-month refund — $174. After WPLG put Comcast on the 6pm nightly news, they agreed to give her a full refund.

[flv]http://www.phillipdampier.com/video/WPLG Miami Woman pays for 13 years of cable she never got 6-9-14.flv[/flv]

Whether it was colossal ineptitude or magnificent indifference, Comcast’s money collection machine grinds on, billing consumers for services they don’t receive and refusing to offer refunds until embarrassed on the evening news, which is exactly what happened when WPLG in Miami heard about this consumer’s plight. (2:12)

 

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