Phillip “More empty promises from the cable industry” Dampier

Listening to Time Warner Cable’s “Here today and gone much richer tomorrow” CEO-in-passing Rob Marcus prattle on endlessly about improving “the customer experience” on analyst conference calls, the cable company’s blog, and in various press statements always makes me pinch myself to be certain I am not dreaming.

Time Warner’s Rob Marcus:

I’m focused on ensuring we establish a customer-centric, performance-oriented, values-driven culture defined by four basic tenets:

• We put our customers first,
• We are empowered and accountable,
• We do the right thing, and
• We are passionate about winning

What does that mean for customers? If we expect customers to trust us to connect them to what matters most, we must put them at the center of everything we do.

How is that working out for you?

Based on consumer surveys, many of Marcus’ customers may have a different sentiment:

• Time Warner puts what is best for Time Warner first,
• Time Warner is empowered to raise rates for no clear reason and as a deregulated entity is accountable to no one,
• Time Warner does the right thing for Time Warner executives and shareholders,
• Charlie Sheen was also passionate about “winning.”

So much for Comcast’s customer service improvement project promised back in 2007. (Source: ACSI)

There is nowhere to go but up when it comes to improving the abusive relationship most Americans have with the local cable or phone company. CNN asked the question, “do you hate your Internet provider,” and within hours more than 600 customers sang “yes!”

Marcus

This is hardly a new problem. Karl Bode at Broadband Reports reminds us that Comcast broke its promises for major improvements in customer service more than five years ago. CEO Brian Roberts at the time blamed the troubles on Comcast’s enormity — taking 250 million calls a year handling orders, customer complaints, etc., is a lot for one company to handle.

“With that many calls, you are going to have failures,” Roberts admitted.

With more than 10 million Time Warner Cable customers waiting to move in at Comcast, if what Roberts says is true, things are about to get much worse. In fact, even before the merger was announced Comcast was just as despised as ever, thanks to rate hikes, usage caps, and poor service often delivered from their notorious sub-contractors that appear on the news for falling asleep, murder, digging in the wrong yard or blowing up laptops, dishwashers or homes.

Judging from the enormous negative reaction customers of both Time Warner Cable and Comcast had to the news the two were combining, it’s clear this merger isn’t the exciting opportunity Marcus and Roberts would have you believe.

‘If you despise Comcast today, your hate will know no bounds tomorrow as Comcast spends the next two years distracted with digesting Time Warner Cable,’ suggested one customer.

Another asked whether Americans have resigned themselves to a trap of low expectations, seeking out one abusive telecom company relationship after another.

“After twenty years of Time Warner’s broken promises, service you can’t count on, and price hikes you can, I made the fatal mistake of running away from one bad relationship into the arms of another with the Bernie Madoff of broadband: AT&T,” wrote another. “Slower service, an unnecessary allowance on broadband usage, and one rate increase too many is hardly the improvement we were promised in the shiny brochure. But we have nowhere else to go.”

Being stuck with an independent phone company with no cable provider nearby can mean even worse service.

“I live in Seattle, and the only option in my neighborhood is CenturyLink DSL,” wrote Jen Wilson.

CenturyLink’s top speed in Wilson’s neighborhood? 1Mbps. At night, speeds drop to 122kbps — just twice the speed of dial-up Internet.

CNN’s Frida Ghitis observed the current state of broadband in the United States is alarmingly bad, and allowing Comcast and Time Warner Cable to merge won’t fix it:

Americans are divided on many issues, but resentment against these telecom giants is so pervasive that it may just be the most heartwarming symbol of national unity. And that’s as it should be. Except that the resentment should extend to politicians who have made this disastrous system possible and allow political contributions to prevent them from fixing it. The problem is not just one of dismal customer service. Instead, it is a growing threat to the country’s economic and strategic position.

If you travel overseas, you will quickly notice that Web access in much of the developed world is light years ahead of America’s. You may also be irritated to discover that far better Internet is much, much cheaper in other countries.

Time Warner’s notorious modem rental fee was just a hidden rate hike, according to the ex-CEO.

Thus far, Time Warner’s remedy to improve service is yet another rate increase. Broadband prices are rising an average of $3 a month — $36 a year, with no speed enhancements on the horizon except in New York, Los Angeles, and cities where Google Fiber is threatening to kick the cable company in the pants. That means Time Warner’s 11.1 million broadband customers will deliver as much as $33.3 million more in revenue each month for broadband service alone. What will you get in return? In most cases, nothing.

Television customers will be pick-pocketed for the newly-“enhanced” on-screen guide many still loathe, which carries a new surcharge applied to the cost of set-top boxes and DVRs. This “enhancement” alone will cost most customers with two boxes an extra $30 a year. It will provide Time Warner with more than $170 million each year in revenue enhancement.

The cable company that fought a battle with CBS last summer “on behalf of customers” faced with paying extortionist pricing for CBS-owned cable networks and local stations will instead send their extortion payment direct to Time Warner, thanks to a new $2.25/mo “Broadcast TV Fee” imposed this spring by the cable company.

But Time Warner is unlikely to hang on to that money for long.

If it wanted to discourage programmers from demanding double-digit percentage rate increases, the plan is likely to backfire once the networks smell the money — more than $25 million a month, $300 million a year — Time Warner claims to be collecting on their behalf.

A Utah federal district court judge has found Aereo in violation of federal copyright law and must end online streaming of over the air television stations to customers within his jurisdiction, which includes Utah, Colorado, Kansas, New Mexico, Wyoming and Oklahoma.

U.S. District Court Judge Dale A. Kimball broke ranks with district court judges in the eastern U.S. that have ruled Aereo’s streamed feeds of local television stations received over the air by tiny antennas is within the law, but the Supreme Court is expected to have the last word when it hears arguments about the service’s legality later this spring.

The ruling means Aereo will have to suspend service in two of its 10 operating markets — Salt Lake City and Denver. Service to other markets will continue unaffected for now.

Kimball’s decision was based on The Copyright Act of 1976 which requires broadcasters and retransmission services to pay royalties to content originators, in this case the networks and the affiliated local stations involved. Broadcasters consider Aereo a major threat to their retransmission consent revenue stream. Cable, satellite, and telephone company providers are collectively paying millions for permission to carry local stations on their lineups. Should Aereo offer a free alternative, these pay television providers could adopt similar technology to avoid paying the fees.

Kimball determined Aereo was operating more like a cable company than a remote antenna service.

Comcast’s new X1 platform (Image courtesy: BWOne)

Comcast is introducing a new upgrade fee ranging from $49.99 to $99.99 for existing customers seeking an upgrade to the company’s X1 cloud-based set-top box.

• “Commencing March 15, 2014, a one-time X1 Platform Upgrade fee of $49.99 may apply to existing XFINITY customers upgrading to the X1 services platform.” — Comcast bill in Pennsylvania
• “Beginning February 3, 2014, a one-time X1 Platform Upgrade fee of $99.99 may apply to existing XFINITY customers upgrading to the X1 services platform.” — Comcast bill in Chicago

Comcast’s website explains what the new fee is all about:

The X1 Platform Upgrade Fee is a one-time fee of up to $99 that is assessed, with limited exceptions that vary by market, when a customer signs up for the X1 Platform. This fee enables us to continue developing and enhancing the features of the X1 Platform, which today include:

• Enhanced search
• Last nine programs viewed
• Voice controls through your mobile device with the X1 Remote app
• Apps on your TV including Weather, Stocks, News, Facebook and Pandora
• Personalized recommendations

Comcast offers the X1 throughout its service area and is distributing Pace and Arris set-top boxes that include a DVR that can record six channels at once. Later on, Comcast will upgrade X1 customers to a cloud-based platform, dubbed internally as “X2.”

When the upgrades are complete, X1 owners will have a cloud-based DVR that stores recordings remotely and allows playback on a variety of portable devices. The platform will also enable customers to use a built-in app to watch live cable TV programming on mobile devices connected to the home network.

New customers are not likely to be charged the upgrade fee, and existing customers may be able to negotiate a waiver in return for a service upgrade. Some customers may also be able to get an X1 by swapping out equipment at a Comcast store. Ask a Comcast representative about your options.

Comcast usually requires a service call to install the X1 to make certain the new platform functions properly.

Efforts by The Weather Channel — thrown off DirecTV over a fee dispute — to suggest its replacement is inadequate may have taken a hit this morning when WeatherNation announced a significant expansion of its weather network.

WeatherNation is largely unknown outside of the 20 million DirecTV subscribers that found the Colorado-based weather network on their lineup instead of The Weather Channel in mid-January. Now the weather network has announced expanded weather services for DirecTV subscribers:

• Local Weather Now: Access customized local weather information at the zip code level. DirecTV subscribers can tune to Ch. 362, press the red button on their remote, and access local weather and forecasts. Local weather information will also be inserted into the live WeatherNation broadcast and run every 10 minutes;
• Severe Weather Mix: In early March, WeatherNation will activate Severe Weather Mix during major weather events showing up to six concurrent feeds of weather information, including coverage from local broadcast stations, where available, live remotes from meteorologists in affected areas, live radar with storm tracking information, NOAA weather alerts, and live coverage from top cable news channels including CNN and Fox News.

AT&T Mobility will add a new “Mobile Administrative Fee” to wireless customer bills beginning this May to defray the costs of doing business.

Broadband Reports notes the new fee amounts to jacking up the cost of service without raising advertised rates.

In most states, the new “Administrative Fee” will amount to $7.32 a year, billed monthly.

AT&T’s website explains the new charge this way:

The Administrative Fee helps defray certain expenses AT&T incurs, including but not limited to: (a) charges AT&T or its agents pay to interconnect with other carriers to deliver calls from AT&T customers to their customers; and (b) charges associated with cell site rents and maintenance.

This is by no means the only “junk fee” AT&T slaps on customer bills that can add up to more than 8.5 percent of your average monthly bill. Among the others:

• Federal Regulatory Fee
• Telecommunications Relay Service Recovery Fee
• Wireless Number Portability and Number Pooling Recovery Fee
• Enhanced 911 Recovery Fee
• Wireless Tower Mandates Costs
• State Area Code Relief Costs
• Customer Proprietary Network Information Notification Costs
• Network Outage Reporting Costs
• State Commission Annual Reporting Costs (Applies only in IN, KY, LA, NM, OH, VA, WI, WV WY)
• Gross Receipts Surcharge (Missouri only)
• Puerto Rico Regulatory Fee (Puerto Rico only)
• Property Tax Surcharge (Puerto Rico only)

Some customers have attempted to break two-year service contracts penalty-free over the addition of new fees, but wireless carriers have made it increasingly difficult to escape, usually because they claim the imposition of new, non-mandated fees do not violate the fine print of their service contract. But complaining customers can usually get carriers to waive the fees as a courtesy. It could not hurt to ask.