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HissyFitWatch: Epix Cuts Deal With Netflix, Time Warner Retaliates By Keeping Network Off Cable Lineups

Phillip Dampier September 22, 2010 HissyFitWatch, Online Video 4 Comments

Epix, the pay-TV channel from Viacom, Lions Gate and MGM, will -not- be coming to Time Warner Cable lineups anytime soon.

Why? Because the network ‘cheapened themselves’ when they agreed to get in bed with Netflix, which will offer online video streaming of the three studios’ movies just 90 days after appearing on the channel.

Time Warner Cable Chief Financial Officer Rob Marcus said the network did itself no favors with that deal.  He told attendees at the Bank of America/Merrill Lynch Media, Communications & Entertainment Conference that Epix’s online video deal “devalued the channel.”

Epix may have irritated the cable company for another reason — it streams much of its content online for its subscribers to watch anytime they like, outside of the industry’s TV Everywhere project.

Indeed, the majority of cable operators seem to share Time Warner’s sentiment, as the new HD pay channel faces a virtual embargo from the industry’s big players, including Comcast and DirecTV.  In fact, Epix’s four million subscribers come primarily from just three companies — Verizon FiOS, DISH Network, and Cox Cable.

[flv width=”480″ height=”292″]http://www.phillipdampier.com/video/Introduction to Epix.flv[/flv]

A short introduction to Epix.  (1 minute)

HissyFitWatch: Rep. Dingell Tells FCC to Drop Broadband Reform Because Chairman Refused to Kiss His Ring

Phillip Dampier July 28, 2010 HissyFitWatch, Net Neutrality, Public Policy & Gov't Comments Off on HissyFitWatch: Rep. Dingell Tells FCC to Drop Broadband Reform Because Chairman Refused to Kiss His Ring

Dingell

Rep. John Dingell has told FCC Chairman Julius Genachowski to drop broadband reform because the Michigan Democrat has not received a detailed reply to his letter about the matter sent back in May.  The Hill reports Dingell doesn’t like to be kept waiting for responses to his “Dingell-grams.”

“I find it wholly frustrating that Chairman Genachowski, after nearly two months, still has not responded to my questions about the classification of broadband Internet access services,” Dingell said in his letter.

Dingell added that he has “serious concerns about the FCC’s proposed course of action” and that Congress has “intense interest” in Genachowski’s plans.

In his May letter, Dingell had said he doubts Genachowski’s plan despite his support for network neutrality rules, which the FCC hopes to enact under the authority it would gain through its administrative maneuver.

“I feel Chairman Genachowski’s responses to my questions would be invaluable in informing the debate on the matter,” Dingell wrote this week.

He said the FCC should not proceed with Genachowski’s proposal to boost its power over Internet service providers through a regulatory maneuver known as “reclassification.” In his original letter, Dingell expressed “grave concern” that Genachowski’s plan risks reversal by the courts, putting “at risk significant past and future investments, perhaps to the detriment of the Nation’s economic recovery and continued technological leadership,” he wrote at the time.

Dingell’s days of putting his constituents first are well past.  He is the longest currently-serving Congressman and the third longest serving Congressman in the history of the country.  These days, having Washington officials bow before him is a much higher priority.  In a petulant letter sent to the chairman on July 20th, Dingell puts a deadline, in bold, for Genachowski’s reply.

Genachowski is probably wasting paper and time responding, considering Dingell already made public his opposition for broadband reform back in May when he wrote, “I have strong reservations about the course the commission is presently taking.”  Dingell said he’s worried that Genachowski’s proposal would be struck down in court, puts at risk “significant” past and future investments and could even “paralyze” other regulatory initiatives.

The reasons for his opposition amount to little more than concern trolling.  The telecommunications industry already challenges virtually every controversial policy enacted by government in the courts, threatens to slash investment in providing broadband service to those they’ve shown little interest in serving before, and do not deserve credit for “technological leadership” as the United States falls further behind others in broadband rankings.  The only threat to the national economic recovery from some cable and phone companies is another rate increase eating away at already tight budgets for most Americans.

Dingell’s latest noise opposing broadband reform brought praise from the U.S. Telecom Association, a group run by and for major broadband providers.  That should not be a surprise either, considering the USTA is Dingell’s 14th largest campaign contributor, donating $9,000 so far this congressional term.

Telecommunications interests who oppose pro-consumer broadband reform are among Dingell’s biggest contributors (in order of ranking):

2 AT&T Inc $15,500
4 Comcast Corp $14,000
14 US Telecom Assn $9,000
Source: Open Secrets

Open Secrets reminds us this is a big money, high stakes fight with special interests pouring tens of millions into an all-out effort to stop meaningful broadband reform:

Since the start of the 2008 election cycle, telephone utility companies have given $12.7 million to federal candidates and party committees and spent $118.7 million on lobbying. Current lawmakers have collected $37.9 million from the industry, with Republicans collecting 51 percent of that.

The computers and Internet industry has spent even more money politicking and has leaned a little more heavily toward Democrats, giving current members of that party 60 percent of their nearly $50 million in total contributions. The industry has also spent $331.4 million on lobbying since 2007.

As the top all-time donor to federal politics, AT&T may have an especially strong standing on Capitol Hill. The company’s employees and political action committee have given $22.6 million since 1989 to current lawmakers through their candidate committees and leadership PACs, with 52 percent of that going to Republicans.

Verizon, too, is considered a “Heavy Hitter” for its extensive contributions over the years to federal political candidates. Current lawmakers have collected $9.2 million from Verizon’s employees and political action committee since 1989, with Democrats receiving 51 percent of that.

[…]

Here are the current lawmakers to bring in the most through their leadership PACs and candidate committees from telephone utility companies since 1989:

Name Total
Sen. John McCain (R-Ariz) $1,066,064
Rep. John D Dingell (D-Mich) $551,909
Rep. Rick Boucher (D-Va) $538,747
Rep. John Boehner (R-Ohio) $415,958
Rep. Joe Barton (R-Texas) $403,420
Sen. John Kerry (D-Mass) $378,863
Rep. Roy Blunt (R-Mo) $371,478
Rep. Edward J Markey (D-Mass) $370,300
Sen. Byron L Dorgan (D-ND) $329,218
Rep. Steny H Hoyer (D-Md) $324,090
Sen. Sam Brownback (R-Kan) $300,914
Rep. Eric Cantor (R-Va) $299,650
Sen. Mitch McConnell (R-Ky) $299,386
Rep. Bart Gordon (D-Tenn) $296,865
Sen. Richard Burr (R-NC) $293,899
Rep. Fred Upton (R-Mich) $276,570
Sen. Robert Menendez (D-NJ) $269,057
Rep. John M Shimkus (R-Ill) $260,458
Rep. Cliff Stearns (R-Fla) $237,450
Rep. Ed Whitfield (R-Ky) $236,990

Opposing broadband reform that ultimately helps your constituents in return for campaign contributions and praise from groups like the USTA is business as usual in Washington.  Dingell’s outburst shows he’s forgotten exactly who he is supposed to be representing in this debate — his Michigan constituents, facing ever-increasing broadband bills.

HissyFitWatch: Google Sued By Frontier Communications Over Google Voice “Patent Infringement”

Phillip Dampier June 23, 2010 Frontier, HissyFitWatch, Video 4 Comments

Frontier Communications filed suit Tuesday against Google claiming the search giant stole its patent for giving users one phone number connecting their home, work and cell phones, the core feature of Google Voice.

Frontier, the independent phone company based in Stamford, Connecticut, claims it holds the patent for allowing a subscriber to “be reached on multiple telephone lines from a single dial-in number.”

“Google’s deliberate infringement of the patent has greatly and irreparably damaged Frontier,” the lawsuit charges.  Frontier is seeking unspecified damages and an injunction to stop the use of the technology.

The lawsuit distracted from Google’s announcement that Google Voice was out of beta and now available to anyone in the United States.  Google Voice lets users obtain a free phone number that will ring multiple telephones and screen calls.

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The one number follow-me feature is hardly new to either Google or Frontier.  Phone companies have offered similar features to businesses through telephone products like Centrex since the 1960s.

Frontier filed its lawsuit hours after the U.S. Patent and Trademark Office issued Frontier’s requested patent.

“We believe these claims are entirely without merit, and we’ll defend against them vigorously,” said Google spokesman Andrew Pederson.

Frontier will likely face an uphill battle in its lawsuit, because the company’s patent request from 2007 comes two years after Google Voice’s predecessor, GrandCentral launched service in 2005.  Google acquired GrandCentral in 2007, rebranding it as Google Voice. GrandCentral offered the same “one number” feature Frontier is complaining about two years before the phone company applied for its patent.

Perhaps Frontier’s lawyers might acquaint themselves with the concepts of “prior art” and “first-to-invent.”

HissyFitWatch: I’m One 3-2 Vote Away from Quitting U-verse – AT&T CEO Threatens to Take His Toys Home

AT&T: 'If you don't do what we say, we're taking U-verse away!'

AT&T is threatening to pick up its toys and go home if the Federal Communications Commission tries to bring back its oversight powers over broadband.

CEO Randall Stephenson threw a major hissyfit in the pages of the Wall Street Journal, annoyed the company doesn’t have free rein to do whatever it wants.

“I’m a 3-2 vote away from the next guy coming in and [trying to regulate us], [and] I take it away,” Stephenson said, referring to it’s U-verse IPTV service.

AT&T has threatened to cut spending on U-verse deployment if AT&T faces regulations like Net Neutrality in its broadband business.

“If this Title 2 regulation looks imminent, we have to re-evaluate whether we put shovels in the ground,” Stephenson said, claiming the company planned to spend a “couple billion” dollars a year on the service… until now.

But AT&T has already cut spending on U-verse, slashing $2 billion in U-verse investments in 2009 alone — news trumpeted to shareholders.  Additionally, AT&T has laid off thousands of employees.  In short, the threats the company made this week have already come to pass… more than a year ago.

Many analysts claim AT&T is bluffing.  Like most landline providers, AT&T is losing traditional phone customers who are disconnecting their wired phone lines.  Its wireless division has been pummeled for inadequate 3G coverage, poor customer service, and lousy reception in many areas.  AT&T can’t afford -not- to upgrade their services if they wish to retain customers.

The cable television industry certainly hopes AT&T isn’t bluffing.  They are enjoying AT&T’s disconnect business as customers dump inadequate DSL service and overpriced phone lines for cable-provided alternatives.

HissyFitWatch: Telecom New Zealand’s XT 3G Network Collapses – “Biggest Telco Cock-Up In the World”

Phillip Dampier March 25, 2010 HissyFitWatch, Public Policy & Gov't, Telecom New Zealand, Video, Wireless Broadband Comments Off on HissyFitWatch: Telecom New Zealand’s XT 3G Network Collapses – “Biggest Telco Cock-Up In the World”

When the 60 Minutes franchise shows up to run a 15 minute story on your corporate crisis, you know you’re finished.

The scene: Telecom New Zealand’s heavily-marketed XT mobile broadband 3G network has collapsed for the fourth time since December, leaving hundreds of thousands of customers without service, government ministers apoplectic about ongoing service problems, and now resignations among senior Telecom officials falling on their swords for endless technical faults that bring excuses and promises of better service that never quite come true.

One Telecom solution: Video their customer service center’s employees trying to cope with a telecommunications crisis in the country in hopes the carefully edited footage, made available to the media, would humanize the company’s own incompetence.  It didn’t work as Telecom New Zealand’s 3G customers rushed for the nearest exits, canceling service and demanding no fee be charged for doing so.

To add insult to injury, after four network crashes, Telecom’s administration of the country’s emergency help line 111 (equivalent to 911 in North America) revealed lapses there as well, when the line suddenly stopped working for several hours.  The problem was discovered not when a Telecom technician discovered it, but rather when a police officer found it strange there were no calls to respond to and called the number himself to test it, finding no response.

[flv width=”640″ height=”372″]http://www.phillipdampier.com/video/TV New Zealand 60 Minutes – Telecom XT.flv[/flv]

60 Minutes aired Telecom’s dirty laundry and pressured Telecom’s CEO to respond to exasperated customers often left without service for days. He blamed Alcatel-Lucent for the problems.  Paul Hamburger, mentioned in this report, resigned earlier today. (15 minutes)

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