Gone

After more than a decade of “beep, beep,” Time Warner Cable is retiring Geococcyx californianus, the ground foraging cuckoo better known as the Greater Roadrunner.

It’s all part of a “brand refresh,” Time Warner’s Jeannette Castaneda tells Fortune.  The idea is to “create excitement around the eye-ear symbol.”  For now, the “Road Runner” name will remain — just the mascot disappears.

When Road Runner was first introduced in 1995 in Elmira, N.Y., it was designed to be a localized high-speed online portal, originally called the “Southern Tier On-Line Community.” Portals were all the rage in the 1990s, designed to serve as a unified home page to help users find content more easily.  When the cable modem broadband service finally spread to other markets, it was branded ‘LineRunner.’

But Time Warner’s marketing people decided the company’s best strategy to convince users that paying at least double the price they were paying for dial-up was worth the investment when you considered how fast cable broadband service was, and how it would outperform any dial-up connection.  The cable company spent months negotiating with Warner Bros. to license the use of the roadrunner in the old Wile E. Coyote cartoons.  The company even changed the name of their broadband product to Road Runner to drive home the speed message.

The "eye-ear" branding that replaces it.

Over the years, Time Warner has blanketed customers in postcard mailers, advertising, and billboards showcasing their broadband mascot, but no more.  While Time Warner Cable would not provide exact reasons for the brand change, we suspect there are several factors involved:

1. The cost to license the roadrunner character from Warner Bros.  In 1998, regional Time Warner representatives shared that the licensing agreement with Warner Bros. was costly and complicated.  Warner Bros. maintains strict control over their licensed characters and how they are used.
2. In the past, emphasizing speed was essential in convincing consumers to drop their old provider for the cable company’s alternative.  But broadband penetration in most of Time Warner’s markets has already reached a high level and most of those still refusing to take the service are not going to be convinced by speed arguments.  For these holdouts, lack of interest and the cost of the service are the most important factors, and the roadrunner character does not speak to these concerns.
3. 

   Canis usagecapus

   The telecom industry, notably cable, has spent years trying to retire the phrases “Internet access” and “Internet Service Provider.”  They don’t even like the word “broadband.”  For them – it’s High Speed Internet (HSI) or “High Speed Online.”  They have put the words “high speed” in the very term they use to describe Internet access.

4. Time Warner Cable believes in their unified bundling of services.  They aggressively pitch all of them together at a discounted price and have de-emphasized the branding that used to be associated with individual package components.  For example, Time Warner didn’t retire the name “LineRunner” when they rebranded their cable modem service Road Runner.  They simply re-used the name for their telephone service.  Time Warner tested LineRunner in the Rochester, N.Y. market before ditching the product for a Voice Over IP service they now like to call “digital phone.”  Today, most of Time Warner Cable’s most visible ancillary branding is done for their triple-play packages.  Remember “All the Best?”

Fortune thinks the retirement of the roadrunner may also have something to do with the company’s desire to implement an Internet Overcharging scheme:

TWC, like other big ISPs, is a leading proponent of imposing bandwidth caps on its Internet users. Imagine the possibilities for illustrating articles about this topic – Wile E Coyote (perhaps wearing a TWC ballcap) tripping up the Road Runner with piano wire, or finally getting his revenge and hurling the obnoxious bird off a cliff.

If this is a new way to attract customers, it’s sure stumping marketing experts who are questioning Hawaiian Telcom’s launch of its new cable TV service to compete with Time Warner Cable’s Oceanic Cable.  Nobody knows where exactly the service is available for sale, or for how much, and HawTel officials are not saying.

“If you call Hawaiian Telcom and ask them about the service, they essentially say ‘don’t call us, we’ll call you’ and they are the phone company!” says Oahu resident and Stop the Cap! reader Dan Ho, who first discovered HawTel was getting into the cable business from Stop the Cap!  “I realize we’re talking about another form of U-verse here, but that could still be a good thing for Hawaiians who cannot get Oceanic Cable and are stuck with HawTel’s awful DSL service.”

HawTel’s new fiber-copper hybrid network tested successfully for 250 mystery families who participated in a secretive beta-test.  The new service is expected to be sold mostly in a packaged bundle with extra high speed DSL (presumably up to 25Mbps), a central DVR terminal that can record up to four shows off the company’s digital cable TV package concurrently, and unlimited phone service.

Lester Chu, a HawTel spokesman, wouldn’t tell reporters the prices for the new service, instead offering to accept bills from competing providers and allowing HawTel to competitively bid for your business.  The company also wouldn’t say where the service was for sale, “for competitive reasons,” added Chu.

But HawTel has been licensed to provide service on the island of Oahu, and intends to rollout the service in contiguous service areas, so once the first new customers do go public, we’ll be able to ascertain where the service is slated to be delivered next.

HawTel says they will begin targeted advertising to alert residents when the service will be available.  That traditionally means direct mailers, door hanger tags, and door-to-door visits from sales teams hired by HawTel.

“It’s a crazy way to build excitement for the product, by keeping it a secret,” Ho believes. “More important, I suspect their pricing is not going to be very good if they require customers to bring in a current bill from a cable competitor in order to get a quote.”

Ho should know, he’s a marketing professional himself.

“I suspect the company wants face time with a customer to explain away the lack of visible savings by instead talking up the features they will offer that Oceanic Cable does not,” Ho suggests.

Among those features – the four-recordings-at-a-time DVR, the 250-channel all digital lineup, and the presence of NFL Network, a network Time Warner Cable systems have perennially refused to carry on their basic digital tier because of its cost.

[flv width=”480″ height=”290″]http://www.phillipdampier.com/video/KITV Honolulu Hawaiian Telecom Bring Cable Competition To The Islands 7-7-11.mp4[/flv]

KITV-TV in Honolulu opened their newscast with the mysterious launch of Hawaiian Telcom’s new TV service.  (2 minutes)

[flv width=”360″ height=”290″]http://www.phillipdampier.com/video/KHON Honolulu Hawaiian Telcom launches cable TV service in select location 7-7-11.mp4[/flv]

KHON-TV in Honolulu covers HawTel’s introduction of cable competition on the island of Oahu, even though company officials won’t say where it’s available or for how much.  (Loud Volume Warning!) (1 minute)

Toronto

Except for South Korea, nobody uses the Internet more than Canadians.  That’s an important finding in a new report produced for Canada’s telecommunications regulator to better understand the current state of the broadband market in the country.

According to recent reports from the Organization for Economic Cooperation and Development, the country generates 2,288 terabytes of data traffic per month per 100,000 residents.  That’s among the highest in the world and comes from avid web browsing, watching online video, and a love affair with smartphones.

But like many relationships, this one is also expensive.  You pay all of the money you have to spare, and your provider delivers you just enough of a usage fix to keep you from running to Ottawa to demand change.

Canadian broadband pricing is in the top third of all OECD-measured nations, with the average price for High Speed Internet running $55.18.  The average median price across all OECD members runs a lot less — $39.23 per month.  If you want to pay less, you have to bundle your landline, cell phone, television, and Internet service with the same provider, or make due with a slow speed “lite user” plan, where average pricing had been running lower until this year.

The average monthly price of the Level 1 basket increased to roughly $35 in 2011, up considerably from $31 the previous year.

Similarly, average monthly price of the Level 2 basket increased this year as well to roughly $50, up from $48 last year.  The average advertized download speed of the services included in the Level 2 basket is close to 6.5 Mbps, which is similar to the average speed in last year’s study.

The average monthly price of the Level 3 basket also increased slightly to $63, but still remains well below the 2008 price of $69 per month.  The average advertized download speed of the services included in the Level 3 basket is roughly 14 Mbps, which is slightly higher than in last year’s study (where the average speed was 12.5 Mbps).

Lastly, the average price of the new Level 4 broadband service basket is roughly $78 per month.  The advertized download speeds for the Level 4 broadband services included in the study range from 25 to 50 Mbps – the average is close to 30 Mbps.

Roughly half of the Canadian broadband service plans surveyed for this study included monthly usage caps.  For those that do, they range from 1 to 13 GB on the Level 1 service basket – the average is 7 GB per month.  The range for the Level 2 service basket is from 25 to 75 GB – the average is 55 GB per month.  The range for the Level 3 service basket is from 75 to 125 GB – the average is just over 90 GB per month.  There has been little change in these monthly usage caps, on average, compared to last year.

In the case of the new Level 4 broadband service basket, for those service providers applying data usage caps, the caps range from 75 to 250 GB per month – the average was close to 140 GB per month.

The Canadian pricing and usage study was developed by Wall Communications for the Canadian Radio-television and Telecommunications Commission.  The best news for Canada?  Your broadband pricing remains relatively stable, with some package pricing reducing the cost of the broadband component.  Standalone service appears to have increased in price only slightly in many markets.  Increased foreign investment in the wireless marketplace is shaking up wireless pricing, as the hegemony of Bell, Telus, Rogers, and Quebecor are under increasing competitive pressure.  It’s a much sunnier outlook than what is taking place in the country to your south.

For Americans, pricing is headed in only one direction: up.

All charts courtesy of Wall Communications, Inc.

Time Warner Cable customers in Austin, Tex. excited to learn DOCSIS 3 speed upgrades have finally arrived in the state capital are less than thrilled to learn the rug has been pulled out from under some of the high speeds the company was promising customers just one week earlier.

At issue is Road Runner Extreme, the DOCSIS 3 upgrade that delivers faster speeds at a “sweet spot” price of just $10 more than Road Runner Turbo.  In most Time Warner Cable markets, Road Runner Extreme delivers 30/5Mbps service, and so it was to be for Austin customers as well:

Captured from Time Warner Cable website - July 1, 2011 (click for screenshot of entire web page)

But Broadband Reports reader “SunnysGlimps,” who signed up for Extreme expecting those speeds, discovered “bait and switch” broadband instead, as the resulting speed test (and subsequent advertising) showed a much less impressive 20/2Mbps result.

“I was actually getting faster speeds with the Turbo then I am now with the capped Extreme package,” says Sunnysglimps. “My speed clearly hits a cap when it goes to 20/2Mbps on speedtest.net.”

This reader feels Time Warner Cable is engaged in false advertising in Austin.

“You cannot advertise 30/5Mbps, sell the service, charge more, and then change your advertising a few days later and say it won’t be what you just purchased.”

Captured from Time Warner Cable website - July 5, 2011 (click for screenshot of entire web page)

Arris' C4 CMTS

In the broadband speed race, no technology can deliver consistently fast upload and download speeds and offer ease-of-upgrades like fiber optics, but most of us won’t have direct access to the technology for years to come.  This week, the cable industry will attempt to suggest fiber upgrades may be unnecessary as it shows off some of the latest broadband technology at the industry’s trade show in Chicago.

Arris, a cable broadband equipment manufacturer, plans to demonstrate just how many “cable channels” it can bond together to build an enormous broadband pipeline, which the company claims will achieve “proof of concept” speeds as high as 4.5Gbps downstream and 575Mbps upstream.

Such a demonstration is impractical for actual use with today’s cable systems, because they lack enough free channel space to construct a pipe that large.  But the cable industry is betting heavily on DOCSIS 3 technology to keep them in the game as other technology threatens to win future online speed races.

At the heart of Arris’ cable broadband platform is its C4 Cable Modem Termination System (CMTS). The latest iteration, called Release 7.4, increases support for bonded channels, allows cable operators to manage the IP video demands of their subscribers, and also includes additional “intelligent network” enhancements to manage different types of broadband traffic.

Cable modem broadband technology is based on a “shared network,” meaning every customer connected to an individual CMTS is sharing the same individual broadband pipeline.  Before DOCSIS 3 technology, the maximum “raw bitrate” of that pipe was generally fixed at around 40Mbps — speed/bandwidth shared with every customer wired into that equipment.  If just a handful of customers used their broadband connection at the same time, speeds were consistently fast and reliable.  But during peak usage, too many customers could place demands on that pipe it could not sustain, and speeds for everyone began to drop.

Since most customers didn’t come close to saturating their broadband connection, hundreds of families safely shared the same pipe without noticeable speed declines.  But as high bandwidth applications like online video and file sharing grew, network engineers had to plan on fewer customers sharing the same connection or regularly split some customers off an overworked CMTS.

DOCSIS 3 technology solves many of these problems by letting cable operators “bond” multiple cable channels together to create a much larger, although-still-shared, pipe.  Arris says design improvements in its latest c4 CMTS also help manage the traffic that crosses it in the most efficient way possible to maintain a consistent user experience.

Because fiber optic competitors routinely win the broadband speed race, cable operators have to counter aggressive marketing strategies they themselves have used against dial-up and DSL service from the telephone company.  Demonstrating high speed results, even when completely impractical to deploy, still helps the industry’s marketing efforts against the competition, and delivers fodder for industry lobbyists used to counter claims by broadband advocates that other countries are deploying more advanced broadband networks that allow North America to fall behind.