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The Magic of Broadband Competition: Sparklight Without Competition vs. Sparklight With Competition

Phillip Dampier June 29, 2021 Broadband Speed, Cable One, Competition, Consumer News, Data Caps, TDS Telecom Comments Off on The Magic of Broadband Competition: Sparklight Without Competition vs. Sparklight With Competition

America’s most costly large cable internet service provider is Sparklight, formerly known as Cable One. Its internet plans are usually data-capped and it barely offers new customers a pricing break before high regular prices apply. Sparklight primarily services small cities and towns, many income-challenged, in the middle of the country. Customers do not have much to rave about, because Sparklight puts its own profits far ahead of its customers. The cable operator was among the first to slap on data caps and was the nation’s most aggressive at getting rid of costly cable television channels.

About the only thing that does move Sparklight’s pricing is the presence of a formidable competitor. In Meridian and Garden City, Ida., TDS Fiber (formerly TDS Telecom) has been bringing gigabit fiber to the home service to area residents at prices low enough to motivate Sparklight customers to abandon the cable company. That motivated Sparklight to improve their plans and lower prices.

First, let’s examine the internet rate card for ordinary Sparklight customers typically stuck choosing either the cable company or DSL from Frontier, AT&T, or Windstream:

Sparklight regular pricing nationwide

Notice the entry-level internet plan (100/10 Mbps) costs $55 a month, does not mention the $10.50/mo modem rental fee (required if you choose the company’s Wi-Fi service), an internet service surcharge of $2.75/mo (not charged in all areas), and a stingy data cap of just 350 GB, which is at least 100 GB less than what the average U.S. broadband household now consumes each month. Internet overlimit fees are $10 for each additional block of 100GB of data in excess of your allowance, up to a maximum of $50 a month. Unlimited service costs an extra $40 a month.

When you add it all up: for an unlimited (100/10 Mbps) internet service plan with in-home Wi-Fi, Sparklight charges $108.25 a month.

If you happen to live in a competitive service area, such as Meridian and Garden City, Ida., speeds are faster, prices are lower, and data caps are nowhere to be found:

Pricing for Sparklight in Meridian and Garden City, Ida.

Customers still face a $10.50/mo charge to lease a cable modem, and that $2.75/mo internet surcharge fee might also apply.

The prospect of competition could cut dramatically into company profits, which is one reason telecom companies are fiercely lobbying the Biden Administration not to fund municipal broadband projects or supply funds to a new competitor as part of the 2021 Infrastructure Plan.

Mediacom Demands $300 For Melted Cable Modem Lost in Devastating Condo Fire

Phillip Dampier March 2, 2020 Consumer News, Mediacom, Video 1 Comment

(Image: WPMI-TV)

An Alabama woman who lost everything in a condo fire has been hit with a $300 charge because she couldn’t return a cable modem that literally melted in the fire.

Mediacom representatives were adamant that if she did not pay her final bill, including a $300 non-returned equipment charge for a cable modem that costs considerably less, her account would be turned over to a collection agency.

Barbara Rose told WPMI-TV she “was shocked” by how Mediacom treated her, and the ongoing battle with the cable operator was adding to her stress. The company said she could always claim the damaged modem on her insurance, something Rose neglected to get for her leased condo. Attempts to negotiate the amount of her final bill with Mediacom went nowhere.

The cable modem/router in question, manufactured by Technicolor, is estimated to have cost Mediacom less than half the amount they were asking. In fact, customers typically pay the cable company more than $12 a month in modem rental fees, but Mediacom showed no willingness to pro-rate the damaged modem and sought ‘more than’ full payment. When Rose refused, “they turned me over to collections,” Rose told the station.

When WPMI contacted Mediacom, the company’s intransigence disappeared immediately.

“We have a longstanding policy to waive equipment return charges for customers who have been displaced by disasters like a fire,” a Mediacom representative told the TV station. “The person this customer spoke to must not have been aware of the policy.”

Rose said she contacted at least five Mediacom employees, including a supervisor, and none were apparently familiar with this policy.

Still, Rose is delighted Mediacom has now waived the modem fee and the cost of her final month of service.

It is just another example of public relations working in favor of customers. When a reporter shows up threatening to make a dispute public on the evening news, most companies buckle in favor of customers they may have refused to help for weeks or months earlier.

Charging for unreturned cable equipment after a fire or other disaster is very common, despite most cable companies claiming to waive fees in the event of such personal disasters. Most instruct victims to pay the charges and seek compensation through an insurance claim. But in most cases, customers need not pay anything at all if they inform the company of its own policies regarding unreturned equipment damaged in fires, floods, or other tragedies.

At the same time, every renter should purchase renter’s insurance to protect the value of their personal property. It is inexpensive and the only way to recoup losses in the event your property is damaged or destroyed.

WPMI-TV in Mobile covers another dispute between a cable company and customer over unreturned cable equipment destroyed in a fire. (2:31)

Spectrum Raising Price & Speed Of Legacy ‘Everyday Low Price’ Internet

Time Warner Cable used to sell $14.99/mo slow speed internet. Spectrum agreed to grandfather the program for existing enrolled customers.

Charter Spectrum is raising both the speed and price of its legacy Everyday Low Price Internet package (ELP), formerly sold by Time Warner Cable.

Customers grandfathered on an existing Time Warner Cable ELP plan will see the following changes, reported by several of our readers, likely already in effect in some areas:

  • NY/NJ Customers: Speeds increased from 3/1 Mbps to 20/2 Mbps. Price increasing from $14.99/mo to $19.99/mo.
  • Other States: Speed increase to 20/2 Mbps. Customers will be notified of a $3 rate hike, bringing the new price to $27.99/mo.

A modem rental fee may also apply in most states, unless you use your own cable modem. Outside of New York and New Jersey, most legacy ELP customers have already experienced several gradual rate increases on this plan, which was originally sold nationwide for $14.99/mo. The first rate increase took most customers to $19.99/mo, followed by a rate increase last fall to $24.99/mo. Now Charter Spectrum has notified customers of another $3/mo rate hike, bringing the monthly rate to $27.99.

Stop the Cap! fought for and won a special concession for New York State residents as a consequence of the approval of the Time Warner Cable-Charter Communications merger. We requested the New York State Public Service Commission make the continued availability of price fixed ELP service a condition of the 2016 merger approval. The PSC agreed with us and made continued availability of the $14.99 service for at least three years part of the deal. That deal condition recently expired and Charter Spectrum is ready to raise the price of the service in New York and New Jersey, but also dramatically boost its download speed. New York and New Jersey residents will continue getting a substantial discount off the price Charter Spectrum charges elsewhere, at least for now.

The Downside to Modem Fees: Customers Hold On to Legacy Owned Modems Forever

Arris/Motorola’s SB6121 SURFboard DOCSIS 3.0 Cable Modem used to be considered “eXtreme,” but now most cable companies consider it obsolete.

The legacy of the hated modem rental fee is coming back to bite providers that charge $10 a month or more for a device that likely cost the company well under $100.

To opt out of the fee, a growing percentage of customers buy their own equipment, but now many of those modems are becoming functionally obsolete and customers are wary of efforts by providers to convince them to accept a newer, company-supplied modem.

With the arrival of DOCSIS 3.1 and faster speeds, the problem is only getting worse for companies like Comcast, Charter Spectrum, and Cox. With an installed base of hundreds of thousands of obsolete modems, customers frequently can no longer get the internet speed they pay for, and the equipment’s limitations can cause congestion on cable broadband networks, because older modems cannot take advantage of the exponential increase in available “channels” that help share the load on the neighborhood network.

“Some customers have cable modems that are incompatible (such as DOCSIS 2.0 and DOCSIS 3.0 4×4 modems) with the current class of service or internet speed that they’re receiving. As a result, these customers may not be experiencing the full range of available bandwidth that they’re paying for,” Comcast informs their customers. “If a device is no longer supported by Comcast or has reached its end-of-life (EOL), this essentially means that we will no longer install the device, either as a new or replacement device. In addition, we will no longer recommend that customers purchase the device, whether new or used.”

But many Comcast customers do not realize their equipment is effectively obsolete until they visit mydeviceinfo.xfinity.com and sign in to their account or enter a device make and model in the search bar on the homepage or hear directly from the company. Comcast will send online alerts to customers verified to still be using outdated equipment and occasionally send notifications through the mail. Customers can order new equipment online or swap out old equipment in a cable store. Comcast prefers its customers rent its Xfinity xFi Wireless Gateway ($13/mo) or xFi Advanced Gateway ($15/mo). As an incentive, Comcast is testing offering free unlimited data in some central U.S. markets to those choosing its more costly Advanced Gateway.

Charter Spectrum sold its merger with Time Warner Cable and Bright House Networks partly on its argument that modem fees would no longer be charged. Despite that, many former Time Warner Cable and Bright House customers still use their own modems, which has been a problem for a company that raised the standard internet speed available to residential customers from 15 Mbps to 100 Mbps (200 Mbps in some markets, mostly those also served by AT&T). Older modems often cannot achieve those speeds. Spectrum notifies affected customers in periodic campaigns, offering to replace their obsolete equipment, but many customers suspect hidden fees may be lurking in such offers and discard them.

“Some modems that were issued years ago have become outdated. If you have a modem that was issued by us and hasn’t been swapped in the last six years, it might need to be replaced,” Spectrum tells customers. “To get a replacement modem, contact us or visit a Spectrum store. Please recycle your old modem or bring it to a Spectrum store for proper disposal. If you do a modem swap with us, you’ll receive a mail return label in your package, which can be used to return your old modem.”

Cox is also in a similar predicament. It runs seasonal checks on its network to identify customers using older DOCSIS modems, often DOCSIS 3.0 4×4 modems, which can only support four download channels. When it finds customers eligible for an upgrade, it mails postcards offering a “free modem upgrade,” usually supplying a SB6183 or SB8200 modem that can arrive in 24-48 hours. But many Cox customers suspect trickery from Cox as well, or run into poorly trained customer service representatives that reject the postcards, claiming the customer is ineligible.

“DOCSIS 3.0 8×4 or higher (or a DOCSIS 3.1) devices are required for all new Cox High Speed Internet customers,” Cox tells their internet customers. “Current Cox customers should ensure they have a minimum of a DOCSIS 3.0 device in order to consistently receive optimal speeds. Additionally, Ultimate customers are required to have a minimum of a DOCSIS 3.0 device with a minimum of 16×4 or higher channel bonding to achieve package speeds.”

In fact, most modem upgrade offers from your provider are likely genuine, but customers need to pay attention to any fine print.

Customers can also purchase their own upgraded modem if they want to avoid Comcast’s Gateway fee. Cox does not charge customers for modems sent as part of a free upgrade offer, but watch for erroneous charges on your bill and report them at once if they do appear. Charter Spectrum has recently introduced a $9.99 modem activation fee, applicable to new customer-owned or company-supplied cable modems. We do not know if that fee would apply in cases of an obsolete modem upgrade. Be sure to ask, and if the answer is no, make a note of the representative’s name in case a dispute arises later on.

Happy Holidays from Comcast: Your Bill is Going Up!

Phillip Dampier November 27, 2018 Comcast/Xfinity, Consumer News 4 Comments

Comcast’s Cyber Monday promotions failed to include in its advertised prices up to $31.25 in monthly surcharges.

Comcast will use two mandatory surcharges to hike cable TV customers’ rates on Jan. 1, including those on promotional or fixed contract pricing, while also raising the optional modem rental fee to a record $13 a month — a new industry high.

  • Broadcast TV Surcharge (varies per market) will increase to $10.00 a month.
  • Regional Sports Network Fee (varies per market) will increase to $8.25 a month.
  • Most customers will see an increase of about $3.75 a month for cable television.
  • The modem rental fee, shown on the bill as “Internet/Voice Equipment Rental” will increase $2, to $13 a month.

Cord Cutters News first reported the rate increases. Ars Technica noted Comcast raised the broadcast TV fee from $6.50 to $8 and the sports fee from $4.50 to $6.50 about one year ago, making these two mandatory surcharges a lucrative source for extra revenue. Comcast does not waive these fees (or future increases) for its cable TV customers, even those on new customer promotions. The company boosted modem rental fees $1 a month in 2017. Now it wants an extra $2, but customers can easily avoid that fee by buying their own cable modem, which will quickly pay for itself.

Comcast typically raises rates in different cities over the course of a year, so only some customers will experience the rate increase on Jan. 1, but by the end of 2019, all Comcast customers will see a higher bill.

The use of surcharges to implement hidden rate increases is controversial. Comcast and other cable companies can and do advertise their services without including increasingly steep surcharges and fees, which can dramatically raise the bill far beyond what companies advertise.

A typical Comcast customer offered a 2018 Cyber Monday bundle of television and internet, advertised for as little as $49.99 a month, would pay an additional $31.25 a month in surcharges, not including an additional outlet service fee if a customer wants to watch on one more than television set.

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