Big Apple Day

Residents on Long Island are learning what Cablevision subscribers in Bronx, Brooklyn, and Connecticut have known for a few years now — if you want to watch Cablevision’s TV lineup, be prepared to shell out almost $7 a month for every television in your home.

It’s part of Cablevision’s march to an all-digital, encrypted cable lineup.  If you want cable TV, you’ll need to lease one of Cablevision’s digital set top boxes or CableCARD devices.

Cablevision says it will provide customers with free boxes for their televisions for the first year, available in limited quantities at Optimum stores or shipped free to your door by UPS.  But after 12 months, customers with several TV’s will find steep increases to their monthly bills, just to cover boxes many don’t want in the first place.

“It’s just more gouging from Cablevision,” writes our reader Stephanie who lives in Lindenhurst, N.Y.  “We used to watch television box-free at the kitchen table or on the computer with our Slingbox, but now our home will need three more boxes when we already pay them $14 for the two we already have.”

Cablevision's Conversion Schedule for Western Long Island

For customers like Stephanie, that adds up to nearly $35 a month just in equipment fees.

“Our bill is already $170 a month and next year it will probably run over $200 with the boxes we don’t want and whatever their next rate increase turns out to be,” she writes.

Cablevision claims they are not doing anything their competition isn’t.

“In fact, every other TV service provider in the New York metropolitan area already requires digital boxes for each TV,” a Cablevision spokesman stressed.

Those upset with the change are considering making some changes themselves — some by switching to a promotional package from satellite TV or Verizon’s FiOS.

“I am well aware they both want you to use boxes on those services as well, but for a year or two, we could probably knock $30 or more a month off our current cable bill with a promotional deal,” Stephanie says.

What about after the deal expires?

“We’ll just switch back to Cablevision on one of their promotional deals,” she says.  “For this family, it’s about the ‘total amount due’ at the bottom of the bill.”

Cablevision’s ongoing transition to digital caused panic when it blanked out broadcast basic cable service for more than 500 residents of a Coney Island complex housing numerous senior citizens, almost all watching local television signals delivered in analog.  When Cablevision made the digital switch in August, every local channel suddenly disappeared.  The NY Post explained what happened next:

Cablevision also announced this week it had upgraded its set top boxes to support several new applications and services on the way.  Multichannel News covered the story:

Cablevision Systems has now deployed Zodiac Interactive’s interactive TV platform — including support for the industry’s EBIF specification — across the MSO’s entire New York-area footprint serving 2.9 million digital cable subscribers.

The operator is using Zodiac’s PowerUp framework software, running on Cisco Systems’ native set-top box environment, to run several interactive applications and services. These include iO TV Shortcuts, search, an enhanced program guide, video-on-demand navigation and dedicated ITV channels.

The companies also are working together on Cablevision’s remote-storage DVR — which the operator has been planning to launch this year — and the MSO is using Zodiac’s PowerUp Advanced Messaging Solution (AMS) software to integrate Web and mobile applications with set-top boxes.

Some other families are considering a different change.

“Maybe we just should stop watching TV in the kitchen,” Dominick Galletta of East Northport, N.Y., told WNBC-TV.

[flv width=”597″ height=”356″]http://www.phillipdampier.com/video/WNBC New York No Cable Box No TV for You on Long Island 9-16-10.flv[/flv]

WNBC-TV covers frustrated Cablevision customers on Long Island now forced to obtain digital cable boxes for every television in their home.  (2 minutes)

Karl Bode over at Broadband Reports offers an additional detail on Frontier’s Internet Overcharging experiment which is now being tested in Minnesota:

Late last week, someone familiar with business operations at Frontier Communications indicated to Broadband Reports that the company was going to begin testing a new capping scheme for heavy users. “Just wanted to let you know that Frontier is sending out letters to the top 50 bandwidth users in Mound Minnesota,” said the individual.

The city of Mound, a suburb located 19 miles to the west of Minneapolis/St. Paul, is home to 9,800 residents.  Mound is the birthplace of the Tonka truck, named after Lake Minnetonka, which surrounds Mound.  Residents of Hennepin County have watched their local phone company change hands several times over the years from Contel to GTE of Minnesota to Verizon to Citizens Telecommunications Company of Minnesota, which does business as Frontier Communications. Frontier has served this part of Minnesota since the end of August, 2000.

Hanus

For a community aggressively pursuing a downtown revitalization and redevelopment program designed to make the community attractive to new residents and businesses, news that the local DSL provider is now going to limit broadband usage and overcharge those who exceed their arbitrary limits is not good.

Among city officials, Mayor Mark Hanus and councilman David Osmek are both Frontier broadband customers.  The city is proud to stream its regular city council meetings online, something Frontier DSL customers will now have to avoid if they want to preserve as much of their 5GB monthly usage allowance as possible.

Action Alert and Alternatives for Mound, Minnesota

For Mound residents who do not want to be forced to limit their broadband activities to the ridiculously low 5GB allowance Frontier is now enforcing, we recommend these actions:

1) Call Frontier Communications at 1-800-921-8101 and tell them you will not keep your Frontier broadband service with a usage cap and you are prepared to take your business elsewhere immediately if they do not rescind their “experiment.”  If they attempt to charge you an early termination fee or cancellation fee if you do decide to cancel, let us know through the Contact link at the top of the page or in the comments attached to this article.

2) Contact your local media — the Minneapolis Star-Tribune, the Lakeshore Weekly News, The Laker, local news radio and television stations and let them know you think they should be covering this story and its potential impact on the local economy in Mound.

3) Your best alternative broadband provider is cable operator Mediacom which does not have a usage limitation on their broadband accounts.  Their speeds and pricing are also much better, based on Frontier’s advertised pricing of  “as low as” $49.99 a month for Frontier High-Speed Internet Max 3Mbps service or “prices starting at” $39.99 a month for Frontier High-Speed Internet Lite 768kps service.

Mediacom offers 3, 12 and 20Mbps broadband service in Mound.  Here are the details:

For New Mediacom customers:

Mediacom offers soon-to-be-ex Frontier customers free standard installation and a 12-month introductory offer for 12/1Mbps service for $49.95 a month.  Telephone service is also available through Mediacom with a bundled service discount.  Customers looking for a budget broadband alternative can sign up for 3Mbps service for $29.95 a month if they also take digital cable or digital phone.  For customers looking for the highest speeds, Mediacom offers 20/2Mbps service for $59.95 a month if you also get digital cable or phone service.

Mediacom is Mound's incumbent cable company

For Current Mediacom Non-Broadband customers:

If you have cable from Mediacom but use Frontier for broadband, you can switch to Mediacom cable modem service and obtain special discounts.  Add Mediacom’s 12/1Mbps service to your existing cable TV account for $19.95 a month for 12 months, or 20/2Mbps service for $59.95 a month for 12 months.  Installation is done by the customer.

Questions about Mediacom service in Mound can be directed to 1-800-332-0245.  Mediacom’s local offices in and around Mound are at:

4) Customers who are absolutely stuck with Frontier broadband who anticipate approaching or exceeding the 100/250GB usage levels should explore a business broadband account with Frontier.  Although pricing may vary from city to city, residents of Rochester who confronted the original effort to impose a 5GB usage cap in western New York found business account DSL service was not much more expensive than residential service, and carried no usage limitations.  Pricing is likely to be less than the punitive rates Frontier wants to charge residential customers for exceeding their allowances.

Denver, Colorado

Comcast, like Time Warner Cable, is slowly transitioning many of its traditional analog channels to digital, making more room for additional HD channels and faster broadband.  The latest city about to experience what Comcast calls its “all-digital migration” is Denver, Colorado.

“As part of the technology enhancement, Comcast is making available up to three devices to customers so they can hook up their (analog) televisions and not miss any channels,” said Cindy Parsons, a spokesperson for Comcast in Denver.  “What this allows us to do is provide hundreds of HD channels in the future, faster Internet speeds, better picture quality, and more ethnic programming.”

Customers with any level of service above Limited Basic with an existing digital set-top box may receive two digital adapters at no additional monthly cost; customers without an existing digital set-top box may receive one standard digital set-top box and two digital adapters at no additional monthly cost.

Parsons claims up to 90 percent of Comcast’s Denver customers already subscribe to digital cable on at least one television set in the home.  Comcast is offering free self-install kits through its Digital Now website.

Comcast intends to commence the transition to digital channel delivery starting this spring continuing into the summer.  The entire state of Colorado will follow, with the transition to digital complete by the end of the year.

Of course, customers with many analog televisions, or who dislike the notion of having to deal with add-on equipment, are out of luck.

[flv]http://www.phillipdampier.com/video/KUSA Denver Comcast Digital Upgrade.flv[/flv]

KUSA-TV Denver talked with Comcast’s Cindy Parsons about the city’s imminent “all-digital-migration” to digital cable television. (3 minutes)

Cincinnati residents relying on Time Warner analog cable are finding four fewer channels on their lineup since last August — two of which have been dropped this month.  Residents with digital-ready televisions will find many more missing, albeit temporarily, as of tomorrow.

Time Warner Cable in Cincinnati is moving channels around, including shifting former analog channels to digital and repositioning others in an effort to create additional space for new HD networks on the local cable system.

John Kiesewetter, the Cincinnati Enquirer‘s media blogger noticed the disappearing act last summer when two regional PBS stations — WPTD-TV Dayton and WCVN-TV Covington, Kentucky were dropped from the analog lineup.

This month, two more channels joined those PBS stations on the digital cable tier — Great American Country and Style.

Kiesewetter notes expanded basic customers’ bills remained the same, despite the loss of four channels from their lineup.  Company officials said customers can continue to watch all four channels by upgrading to digital cable for an additional fee, a prospect that bothers Kiesewetter:

Not everyone wants/can afford digital cable, despite all the TWC ads about bundling and locking in rates. The bottom line is if you’re a country music fan, you’ll have to pay more (getting digital cable) to see GAC.

Kiesewetter

“We realize this is unfortunate for GAC fans, but Time Warner Cable has decided to move GAC to Channel 255 to make  room for additional services,” Scott Durand, vice president, marketing for GAC told Kiesewetter. “Fans with only the expanded basic level of service will need to contact Time Warner  Cable to upgrade to digital in order to continue viewing GAC, the country music network that actually plays music.”

In fact, Time Warner Cable is dropping analog channels to make room for additional HD networks, which are digitally compressed and can be delivered in greater numbers than their analog counterparts.  Comcast customers across the country are also familiar with the erosion of analog cable channels in favor of digital for precisely the same reason — freeing up additional space.

But the result is almost always no reduction in rates for analog-only subscribers, despite the shrinking number of channels.

Cincinnati residents with cable-ready digital televisions may find an even smaller lineup waiting for them tomorrow morning.  That’s because Time Warner is shifting most of the local channels to new channel positions, again to make room for new HD networks.  Those with older sets or who use a Time Warner cable box will not notice anything, but those with HD, digital ready sets will need to rescan their channels to allow the TV to map their new channel positions.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/WLWT Cincinnati Time Warner Cable Customers Need to Rescan TVs 3-24-10.flv[/flv]

WLWT-TV Cincinnati educates viewers step-by-step on how to rescan their television sets to pick up local stations’ new channel positions.  (1 minute)

[flv]http://www.phillipdampier.com/video/WCPO Cincinnati Time Warner Customers May Have to Rescan TVs 3-23-10.flv[/flv]

WCPO-TV in Cincinnati is also impacted by Time Warner Cable’s changes, and explains exactly who is affected.  (1 minute)

Source: Trefis

At a time when digital cable revenues are anemic, and rate hikes are among the most important factors for keeping average revenue per customer as high as possible, Time Warner Cable’s broadband division is just a percentage point or two from becoming the most important service on offer from the nation’s second largest cable provider, at least as far as the stock price is concerned.

Trefis, a forward looking valuation analyst, says future growth at Time Warner Cable will largely come from consumers looking for broadband connectivity. While the company’s digital cable division still constitutes the majority of its stock price estimate, 36 percent, the broadband division has now achieved a close second — 35.1 percent, according to Trefis.

Time Warner Cable maintains an 11 percent share of America’s broadband market, a number expected to grow to 13 percent over the course of the next few years.  Trefis predicts a corresponding increase in the stock price as consumers continue to be driven to the cable operator, particularly from less robust DSL service sold by telephone companies.

Trefis notes the need for speed is a driving factor, and the company can expect to also benefit from customers bundling multiple services together when signing up.