Stop the Cap! reader Wayne A. dropped us a line to let us know Comcast has been getting very aggressive in the Denver area, poaching CenturyLink customers with enormous discounts:

My wife and I just accepted a package from Comcast to leave CenturyLink for a package that includes:

• Digital Premier HD with DVR
• HBO, Cinemax, Showtime, and other premium movie channels
• Broadband service at 25/5Mbps
• Unlimited Long Distance Digital Phone Service

Comcast’s price?  An amazing $109.99/month for the first year, $129.99/month for the second.  Wayne says that’s a savings of $90 a month over ordinary Comcast prices, and compared with what he was paying CenturyLink, he will save $912.12 during the first year and around $600 for the second.

What makes Comcast’s pricing so aggressive is the fact they include much faster broadband speed than many other retention or “capture” customer deals.  They also throw in free premium movie channels.  We’ve seen Time Warner Cable offer triple-play retention deals for less than $90 a month for the first year, but they don’t include movie channels and deliver broadband service at the standard 10/1Mbps speed.

If you are paying Comcast more, it may be time to pick up the phone and threaten to walk unless you can have the same deal.  We’ve found dealing with customer retentions to be a real “your results may vary”-experience.  Don’t be willing to take the first offer.  Don’t be afraid to dismiss weak deals with a non-committal “I’ll think about it” if the price is not right for you.  Then call back.

In the last few weeks, we’ve found Time Warner Cable’s best deals still go to customers who actually schedule a service disconnection. Within hours, Time Warner starts calling, looking to “make an offer you cannot refuse.” The retention specialists at Time Warner who reach out to you generally have the most aggressively priced deals. You qualify if you call, schedule a disconnect a week or two out, and wait by the phone. You can keep your service running while company representatives try to convince you to stick with them.  Just make sure you answer those unfamiliar Caller ID-calls — it’s probably the cable company.  Most will ask why you disconnected.  If you answer “price,” the deals start coming.

Unfortunately, there was no way we could take advantage of any of their latest offers, which literally started two hours after disconnecting my late grandmother’s cable service.

It’s a buyer’s market for telecommunications products, so never settle for the regular price when a substantial discount is a phone call away.

Customers of Time Warner Cable in Maine preparing for the cable company’s all-digital conversion that will eventually impact every customer nationwide are reporting more problems with the equipment the cable company is supplying to those without set top cable boxes.

Frank Dobbelaere from Augusta is disgusted with the digital box conversion, and is calling the cable company “anti-consumer.”

“They can cut service costs, forgo capacity upgrades and charge indefinitely per device, leaving consumers with inconveniences, obstacles and surcharges,” Dobbelaere says.  “Time Warner Cable staff said the digital cable adapters (DCA) are mandatory, for everything, unless you have a digital cable box per device. HDTVs with digital tuner do not get a pass. I quote: ‘No adapter = no TV. Cable TV is going to be password protected.'”

Indeed, Stop the Cap! has heard from several customers in Maine who report Time Warner Cable’s new digital conversion program even impacts customers with digital tuner-equipped sets, forcing them to either watch a downgraded analog signal or upgrade to a digital set top box.

“They have encrypted the basic cable lineup so QAM reception is not going to work, assuming you can even figure out how to program it in the first place,” writes Stop the Cap! reader Bill Adair.  “We tried their digital adapter for about five minutes, and that is all it took for us to take it back.  It’s absolute garbage.”

Adair reports the DTA Time Warner supplies significantly degrades picture quality.

“It’s absolutely awful with wavy lines in the background, grainy picture quality, and a picture that resembles a VCR tape,” he reports to us.

Adair said he wouldn’t even bother with the device on his 13 inch kitchen television.

“It’s unwatchable, in my opinion, on any television.”

Dobbelaere considers the resulting picture from his DTA sub-standard definition.

“I lost every local HD station. Most analog channels were blank. The DCA quality is worse in side by side analog comparison. It is prone to interference and signal degradation,” he reports to the Kennebec Journal. “Toss out the $100 all-in-one remote, put the TV on channel 3 (or 4) and use the chintzy DCA remote, without closed-captioning support. Two or more devices in a room? Thanks to DCAs, you can no longer control the channel independently, because each remote changes the channel on any DCA.”

Antenna retailers are using Time Warner's digital conversion as a sales opportunity.

The list of devices rendered effectively inoperable with the new digital system continues to grow unless you go through the painful, and pricey set top box route:

• VCRs
• DVRs like TiVo
• DVD Recorders
• PC TV Tuner Cards and Add-Ons
• Slingbox
• “Cable-ready” HD television sets

“What happened to free HD, cable without a box, buy a new HDTV and get cable to avoid a converter — so eagerly touted during the DTV transition and other commercials,” asks Dobbelaere. “We were perfectly happy viewing and recording the analog-digital mix; but now will pay more for less, while losing any recording and networking capability.  Of course, Time Warner would happily rent me a dozen digital cable boxes and DVRs.”

Dobbelaere has a better idea.  He’s planning to cut the cable and “go old school” with rabbit ears.

In fact, antenna retailers see an opportunity and are buying ads to remind Maine residents they can still watch HDTV programming over the air, without a digital box, a DTA, or monthly cable bill.

Even Jessica Fletcher can't solve the case of The Digitally Murdered VCR

Time Warner Cable customers in Maine are learning the cable operator’s move to digital cable is making VCR programming downright murder.

Although many of us have retired the videocassette recorder to closets, attics, or basements, millions of them are still being used on a daily basis to time-shift shows and to record one channel while watching another.  But in Maine, the first area to experience Time Warner’s shift to an all-digital cable experience, viewers like Nancy Blethen from Hallowell are learning those days are coming to an end.

Blethen shared her plight with the Kennebec Journal:

I read with interest the story about the converter box for Time Warner subscribers. Although, the idea of more channels is appealing, they really aren’t any that I care to watch.

Another point the story omitted is that if you have a VCR and connect the converter from your cable through the VCR to the TV set, you will only be able to record the channel you are watching. No more recording when you are not home or if you want to watch another channel while recording another program.

I spent at least 20 minutes on the phone with a tech person, and they checked with their supervisor and concluded that this is something subscribers will have to live with, at least for the present. You can avoid this by using one of their DVR recorders, but at an additional monthly fee. Time Warner is the only choice I have where I live so I have to forget recording on the VCR.

Although Time Warner Cable will happily supply a digital solution to this analog quagmire, it doesn’t come for free.  DVR service costs $13 a month or more each month.  While it solves the problem of the flashing 12:00-clock for confounded consumers, it also increases their cable bill by well over $100 a year, more than the cost of the VCR (and tapes) that used to let them record shows for free.

Just over one year ago, Stop the Cap! introduced readers to Sezmi, a cable-TV alternative that delivered a package of selected cable networks, on-demand movies, video podcasts, YouTube content and local broadcast stations with a 1TB DVR set top box for $19.99 a month. Subscribers that decided to forgo the cable networks paid even less — $4.99 a month for service.

But no more.

As of this morning, Sezmi has discontinued its service, leaving customers with a nearly-worthless set top DVR box they spent $149.99 to acquire, and a number of questions about the company’s sudden change of direction.

The company issued a statement telling customers it has ceased monthly billing and giving customers until later this year to use some of the features Sezmi operates in-house:

We regret to inform you that Sezmi is discontinuing its consumer service. As of Monday, September 26, 2011, you will no longer be able to view or record broadcast TV programming through your Sezmi System. However, you will still be able to view movies and shows you have already saved to your Sezmi media recorder. To help ease the transition, you may also rent movies and shows if available at no charge from Sezmi’s On Demand catalog through November 1, 2011.

Why do you have to discontinue your consumer service?
Sezmi has changed its business focus to providing our product and technology platform to service providers, internationally and in the U.S., who are interested in providing broadband video services to their customers. As a result, we are no longer supporting our direct-to-consumer service.

What does this mean for me?
You will no longer be billed for Sezmi service. As of September 26th, you will no longer be able to utilize the programming guide and your digital media recorder will no longer operate as a recorder. You will be able to view movies and shows you have already saved to your recorder and YouTube access will not be affected. Between now and November 1st, you may rent any movies or shows at no charge to you. After November 1, Sezmi’s On Demand catalog will no longer be available but you will be able to use your Sezmi system to view all programming you have saved to the media recorder.

No Service After Sept. 26, 2011 didn't make the list.

What it also means is customers are stuck with a proprietary DVR box that won’t work with other services.

Sezmi’s business model was most operational in the Los Angeles market, where it leased unused spectrum from several LA-area television stations to carry its lightweight cable package.  In other markets, Sezmi simply wedded over the air digital free television stations with its online lineup of on-demand programming and charged $4.99 a month to watch.  It was never a compelling offer outside of Los Angeles, and even in that city, trouble brewed when Sezmi discontinued the cable package in December.

Among the difficulties Sezmi encountered:

1. Finding cooperative local broadcasters willing to lease unused digital spectrum to Sezmi proved to be a difficult proposition.  Broadcasters are zealously guarding the frequencies they control now and do not want to get into long-term contracts with third parties.  Network owned stations in major cities may have already committed significant spectrum to their own sub-channels and other projects, or want to hold them in reserve for future use.  Besides, why lease spectrum to a company for a cable package large networks could theoretically build themselves.
2. Sezmi lacked access to many popular cable channels, notably ESPN and HBO.  It’s difficult to get consumers to drop a cable or telco-TV subscription in favor of one that is limited to two dozen cable channels, some of which were hardly deal-sealers.  Efforts to move cable channel programming to online distribution were met with difficulty because content owners increasingly want a piece of the action.  Deep pockets are required to sustain video streaming businesses.
3. Consumers never really understood the product and were not convinced to choose it over better known alternatives that included satellite TV.

Sezmi’s new focus on working with larger players could meet with some success, but Sezmi’s best chances of all could be developing the technology for ethnic audiences or other narrowcast opportunities where the lack of a hundred plus channel cable package would not be a factor.

Big cable companies are targeting their non-customers, and those current customers who refuse to sign up for triple-play bundles, with some of the most aggressively-priced promotions in years.  The two largest, Comcast/Xfinity and Time Warner Cable, have been sending out letters offering dirt cheap $20 Internet service or cable television packages that include DVR service, a second set top box, and hundreds of digital cable channels for $49.99 a month for two years.

Comcast

Comcast promotions vary in different markets, depending on who their competitors are.  The best pricing goes to new customers, as a recent promotion sent to suspected DSL customers in their service areas illustrates.

(click to enlarge)

The cable company is pitching 12 months of Xfinity Performance (typically around 12Mbps) for $19.99 a month for the first year for new customers only.  Some customers report they can cancel penalty-free at the end of the first year, while others are told Comcast is actually pitching a two-year contract where the price of the service increases to $34.99 a month during the second year (a early cancellation fee pro-rated to less than $50 applies in some areas if you cancel early).  This pricing applies to standalone service, which makes it aggressively priced.  Most cable providers charge a higher price for Internet-only service.  Some customers also report a $25 or more installation fee applies (and in some areas an in-person install is required for new customers).  We’ve heard from some readers that successfully qualified for the promotion under the name of a spouse if they have had Comcast service previously.  Otherwise, Comcast usually requires customers to be without service for 90 days before they are considered “new customers.”

Customers can try calling 1-877-508-5492 to request this offer: $19.99/Month for 1 year with no additional service required (Code at bottom of letter: LTP79376-0014).

If that number does not work from your calling area, other numbers to try include: 1-877-298-0903 (CA, TX), 1-877-508-5492 (CA, WV), 1-877-494-9166 in NJ (currently pitching 6-month version of this promotion without contract.)

If 12Mbps is not fast enough, ask the representative what promotional pricing exists for faster speeds.  Some customers scored 35Mbps service for $10 more per month.

A separate ongoing promotion from Comcast offers Blast Internet service at 25Mbps+ on similar terms.  But pricing varies wildly in different markets.  Customers in California were able to purchase this promotion for as little as $19.99 a month with a year-long contract, while customers in Chicago were asked to pay $39 for essentially the same service.

Comcast’s promotions list runs several pages, so if you are shot down asking for these promotions, ask about other current offers or hang up and try calling again and asking to speak with someone else.  Your results may vary depending on the representative you speak with.  Remember Comcast’s 250GB usage cap applies to all residential service plans.

Time Warner Cable

In addition to regular Road Runner standalone Internet service promotions that deliver Standard Service speeds for $29-35 a month for a year, Time Warner has been getting very aggressive trying to win back cord-cutters and those who have left for a competing pay television provider.  The cable company has mailed letters to non-cable TV customers in the northeast pitching substantial discounts on cable TV service price-locked (but no commitment term for you) for two years and includes free DVR equipment, DVR service, and a second set top box with digital cable TV for $49.99 a month.  They’ll even credit back the cost of any early termination fees charged by another provider over the course of the first year of service.

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The promotion is intended primarily for customers who already receive service from another provider, but new customers can call 1-855-364-7797 and ask for the offer without the competing provider early termination fee rebate.  If you do receive service from another provider, there are various requirements and steps to follow to qualify for up to $200 in termination fee credits.  Visit SwitchtoTWC or call them to learn the details.

Neither of these promotions work for existing Time Warner Cable customers.  If you already subscribe, discounts will be offered when you threaten to cancel service.  Retention deals from Time Warner Cable can be as aggressively priced as new customer promotions.  We have found retention offers made during the initial call to request a service disconnection are often not very aggressive.  Most representatives try and pare back your package before starting to offer retention pricing (which gradually gets better the more times you reply, “is that the best you can offer?”)

Our best recommendation is to call and request to cancel service 2-3 weeks from today and wait for a Time Warner Cable retention specialist to call you (answer those mystery caller ID calls — it could be Time Warner).  The reps that call you directly often deliver the most aggressive retention deals.  If nobody does reach out to you, call Time Warner yourself a few days before the disconnect is scheduled and ask them to make you an offer to rescind your disconnect request.  You may find some serious savings taking this approach.  If not, you still have time to rescind your disconnect request on your own before the plug gets pulled.