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Bradford, N.Y. – The Poster Child of America’s Rural Broadband Crisis (Updated)

The Kozy Korner Restaurant is one of the local businesses in Bradford, N.Y.

Bradford, N.Y. is an unassuming place, not atypical of communities of under 1,000 across western and central New York. It’s too far south to benefit from the tourist traffic and affluent seasonal residences of the Finger Lakes region. It isn’t next to a major interstate, and the majority of travellers heading into the Southern Tier of New York are unlikely to know Bradford even exists. Nestled between the Sugar Hill State Forest, Coon Hollow State Forest, Goundry Hill State Forest, and the Birdseye Hollow State Forest, the largely agricultural community does offer some nearby tourist opportunities for outdoor hiking, camping, boating, and horseback riding.

Ironically, just 25 miles further south of Bradford is the headquarters of Corning, Inc., a world leader in the production of optical fiber. Both communities are in Steuben County, but are miles apart in terms of 21st century telecommunications technology.

Corning residents can choose between Verizon and Charter Spectrum. Bradford has a smattering of cable television and internet service from Haefele TV, a tiny cable company serving 5,500 customers in 22 municipalities in upstate New York — towns and villages dominant provider Charter Spectrum has shown no interest in serving. Verizon barely bothers offering DSL service, and has shown no interest in improving or expanding the service they currently offer. As a result, according to the Bradford Central School District, approximately 90% of student households in the district do not have access to broadband internet speeds that meet or exceed the FCC’s minimum standard of 25 Mbps.

“Connectivity is sporadic throughout the community,” the district told state officials.

Some residents suffer with satellite internet, which has proven to be largely a bust and source of frequent frustration. Slow speeds and frequent application disruptions leave customers with web pages that never load, videos that don’t play, and cloud-based applications far too risky to rely on. Others are sneaking by using their mobile phone’s hotspot for in-home Wi-Fi, at least until their provider throws them into the penalty corner for using too much data.

Governor Andrew Cuomo’s 2015 Broadband for All initiative was supposed to end this problem forever. Gov. Cuomo promised that his program would offer high-speed internet access to any New Yorker that wanted it. New Yorkers want it, but still can’t get it, and now comes word the all-important third round of funding to reach some of the hardest areas of the state to serve may now on “indefinite hold,” according to Haefele TV, with no explanation. That means providers that would otherwise not expand service without the state’s financial assistance are shelving their expansion plans until the money arrives, if it ever does.

This week, the Democrat and Chronicle toured broadband-challenged Bradford. Reporter Sarah Taddeo sends word the status quo is not looking good for the people of the spread-out community. In fact, the internet challenges Bradford faces are all too familiar to long-time readers of Stop the Cap!:

  • Stalled funding: Haefele TV has shown an interest in expanding service in Bradford, and New York State awarded the company $5,150,612 to connect 1,303 homes and businesses in upstate New York. The money now appears to be on hold, according to a Haefele spokesperson.
  • Poor broadband maps: Bradford residents without service are hopelessly dependent on the broadband service maps offered voluntarily by incumbent providers. Those maps are inaccurate and typically unverified. Even worse, many Bradford residents are falling victim to the scourge of the “census block,” a granular measurement of an area showing who has service and who does not. In suburban areas, a census block is usually part of a neighborhood. In rural areas, it can encompass several streets containing random houses, businesses, and farms. Most broadband funding programs only award funds to “unserved” census blocks. If any provider delivers service to a single home or business within a census block, while ignoring potentially dozens of others, awards are typically not available because that area is deemed “served.” Bradford has several examples of “served” census blocks that are actually not well-served, as well as at least one that was skipped over altogether.
  • Politics and bureaucracy: Politicians are usually on hand to take credit for broadband expansion programs, but leave it to the bureaucrats to dole out funding. That is typically a long and arduous process, requiring a lot of documentation to process payments, which are usually provided in stages. Some providers do not believe it is worth the hassle of participating. Others do appreciate the funding, but do not appreciate the delays and paperwork. Politicians who declare the problem solved are unlikely to be back to explain what went wrong if lofty goals are ultimately unachieved.
  • Relying on for-profit providers: Some portions of Bradford will eventually get service from Haefele, while others will be officially designated as served by Hughes’ satellite internet service — one of two satellite providers that already earn low marks from local residents sharing scathing reviews from paying customers. Haefele won’t break ground without state dollars, and nothing stops Bradford residents from signing up for satellite internet today.
  • Homework Hotspots: Impacted families often have to drive to a community institution or public restaurant or shopping center that offers reliable Wi-Fi to complete homework assignments, pay bills, and manage the online responsibilities most people take for granted. Their children may be left at a permanent disadvantage not growing up in the kind of digital world kids in more populated areas do.

With funding for the area seemingly “on hold,” the Bradford’s school district stepped up and found $456,000 from the community’s share of the state’s Smart Schools bond fund, which supplied $2 billion for school districts to spend on technology products and services. Instead of buying iPads or more computers, school officials announced an initiative that would spend the money on an 18-mile fiber network strung through the community’s most student-dense neighborhoods. The school district claims “50-75% of student households will be covered” by the initial phase of the project, with plans to eventually reach everyone with a fiber-fed Wi-Fi network. The proposal has been cautious about staying within the guidelines of the bond initiative, such as limiting access exclusively to students, at least for now.

So far, the proposal has survived its first major review by state officials, but there is still plenty of time for large cable and phone companies serving the state to object, not so much because they want to punish the people of Bradford, but because they may not like a precedent established allowing school districts to spend state funds on broadband projects that could expose them to unwanted competition.

Updated 3:50pm ET: We received word from a credible source denying that the third round of broadband funding was on hold across New York, so we are striking through that section of the story. We anticipate receiving a statement for publication shortly and will update the story again when it arrives.

The Star Gazette visited Bradford, N.Y., to learn more about the broadband challenges faced by the community of nearly 800 people in southwestern New York. (1:47)

NY City Hall to Charter: Where is Our $6 Million? 10 Days to Pay or Spectrum Shouldn’t Stay

Phillip Dampier March 7, 2019 Charter Spectrum, Public Policy & Gov't No Comments

Spectrum workers on strike during the 2017 Labor Day parade in New York City. (Image courtesy: IBEW/Local 3)

New York City officials are giving Charter Communications 10 days to send $6 million in unpaid franchise and royalty fees or make a strong and credible case for why it shouldn’t pay, with likely litigation and the possible non-renewal of Spectrum’s contract to supply cable service on the line if the mayor isn’t satisfied.

In a letter addressed to Charter CEO Thomas Rutledge, New York Mayor Bill De Blasio accused the company of deliberately shorting the city’s share of revenue from Spectrum’s advertising sales, calculating the city’s cut based on the lower net amount collected after expenses, instead of on gross revenue, as the contract requires. The mayor also claims Charter is withholding royalty revenue from an ancillary business Charter partly owns.

“Charter Spectrum has proven time and time again that they’re unwilling to play by the rules,” the mayor told the Daily News. “This is money that can be reinvested in our communities instead of going into Charter’s coffers as they continue to hike rates for New Yorkers. [This latest] default is another thing we’ll take into consideration when their contract expires in 2020.”

Charter’s Endless Labor Problems Upset New York Officials

Charter is already in hot water with New York officials over its treatment of workers represented by the International Brotherhood of Electrical Workers (IBEW) Local 3, which have been on strike since March 2017. The highly skilled technicians were incensed when they learned hard-fought benefits were being clawed back by Charter, even as the company paid its CEO a record-breaking $98 million in compensation.

Mayor de Blasio

Over 1,800 middle class workers represented by IBEW Local 3 have suffered greatly over the past two years, according to labor reports. Many have had to cash in retirement savings, some have lost their cars or homes to foreclosure, others face mounting medical bills, in addition to family pressure at home. The union argues it is one of the last bastions to protect all middle-income earners from a race to the bottom mentality that is reducing wages and benefits. When a union worker is replaced with a less-skilled contractor, the pay and benefits Charter offers are significantly lower. Those technicians, regardless of their intentions, are also often poorly trained and risk alienating customers when repairs are incomplete or fail.

Many politicians in New York City have sided with the union strikers and have deplored the seemingly endless strike. Time Warner Cable, in contrast, had reasonably good relations with its unionized workforce. Prior to the merger, the biggest cable vs. labor union friction in the city was between the Communications Workers of America and Cablevision, which began after the CWA started organizing workers in Brooklyn and the Bronx in 2012.

With the Charter dispute approaching its second anniversary, the cable company has been spending subscriber dollars on a slick effort to convince its replacement workers to team up with the cable company to vote for decertification of IBEW Local 3 with the National Labor Relations Board.

Ironically, the same company that has dragged its feet settling the dispute has sent email to replacement workers claiming the union has done a lousy and ineffective job… of wearing down Charter.

In a Jan. 31 internal email obtained by In These Times, Charter Communications regional vice president of New York City operations, John Quigley, told workers, “In my opinion, Local 3 has not earned the right to represent you. Over the past several years they have misled their members, led them out on a strike without a clear plan, mishandled almost every aspect of the strike, made it very clear what they think of employees who are working with us today, and continue to make empty threats about harming our business. We hope that you vote ‘no’ and give us a chance to continue to make Charter a great place to work together.”

Race to the Bottom for Workers, Higher Rates for You

If Charter is successful in organizing replacement workers to side with the cable company and vote in larger numbers than the strikers, the current union representation will essentially end, along with the strike, handing total victory to Charter Communications. The cable company will likely impose its own terms on workers shortly afterwards. Critics claim that should be a familiar story for Spectrum subscribers.

“The company is basically union busting in New York City, and they’ve come in, raised rates on people and set their own terms because they hold a monopoly right now and there’s really no one to stop them from doing what they’re doing,” Troy Walcott, a striking worker, told In These Times.

With ongoing controversies with Charter on both the state and local levels, the company is likely to face increased scrutiny if the cable operator applies for a franchise renewal with the city next year, assuming state regulators do not move to enforce their own July 2018 decision to effectively kick Charter Communications out of New York State.

N.Y. Congressman Introduces Bill Forcing Cable Companies to Reveal Real Internet Speeds, Pricing

Brindisi, as he appeared in an ad slamming Charter Spectrum in the summer of 2018.

Rep. Anthony Brindisi (D-N.Y.) today introduced a bill in Congress to force cable operators fined by a state telecommunications regulator to publicly reveal the actual performance of their internet services, subscriber counts, and a complete price listing including all fees and surcharges.

The Transparency for Cable Consumers Act comes in response to New York’s experiences with Charter Communications, which was fined for failing to meet its commitments under a 2016 merger agreement allowing Charter to acquire Time Warner Cable. Brindisi made the cable company’s performance a core issue in his 2018 campaign, brazenly buying commercial time on Spectrum cable systems for 30-second ads slamming the cable company.

“I’ve heard from thousands of Upstate New Yorkers who are sick and tired of dealing with frequent rate hikes, poor customer service, and failed promises,” said Brindisi. “This is more than just an inconvenience. For families on fixed incomes, an unexpected rate hike could wreck their budget. And for people in rural communities, crawling internet speeds can take away their connection to jobs, health care, information, and important online services. When a company enters into an agreement, it should be required to hold up its part of the bargain.  We can’t keep giving these companies a free pass. If we don’t hold them accountable, nothing will change.”

Brindisi has bristled over the New York State Public Service Commission’s decision to repeatedly extend the deadline given to Charter to file an orderly exit plan winding down its cable operations in the state. The most recent extension was approved on Wednesday, now giving Charter Communications until April 5, 2019 to appeal the Commission’s decision and until May 9, 2019 to file its six-month exit plan.

Brindisi complains Spectrum is being allowed to linger even as consumers continue to contact his office with complaints about frequent rate hikes, slow internet speeds, and poor customer service. His December 2018 letter to the PSC asking the Commission to stop giving Charter additional time extensions has gone unanswered, according to Brindisi.

Brindisi’s bill attempts to walk a fine line around the federal government’s wholesale deregulation of the cable industry. Various deregulation measures stripped federal, state, and local officials of most of their powers to oversee the internet and Voice over IP telephone service. Cable television remains subject to some local oversight and regulation, but not in all areas. Many states also have so-called “state franchise” laws in place, which gives blanket authority for cable operators to offer cable television in the state without seeking a separate agreement with each community.

The Transparency for Cable Consumers Act, would require a cable or internet company to disclose information about its operations if it is fined by a state regulator:

  • The number of cable and broadband internet customers in each county;
  • The average cable bill and broadband internet bill amounts in each county;
  • A full accounting of all fees charged customers in each county; and
  • The average broadband internet speeds delivered in each county.

Rep. Anthony Brindisi (D-N.Y.) appeared on the House floor this afternoon to introduce the Transparency for Cable Consumers Act. (1:18)

Stop the Cap! Urges N.Y. Public Service Commission to Come Clean on Charter Talks

Stop the Cap! today filed comments with the N.Y. Public Service Commission urging the regulators to publicly disclose the nature of their ongoing discussions with Charter Communications.

“Since last July’s vote revoking Charter/Spectrum’s merger approval with Time Warner Cable, the PSC has been engaged in secret talks with the cable company in what we now believe was actually an enforcement bludgeon to get the cable company to meet its commitments,” said Stop the Cap! president Phillip M. Dampier. “We suspect Charter got the message to either clean up its act and follow through on its original merger obligations, or the regulator would make good on its threat to boot the company out of New York. If Charter behaves, the Revocation Order exiling Charter from the state will probably disappear in a final settlement.”

Stop the Cap! agrees with the PSC that Charter should be held to all the merger obligations it originally agreed to, but by keeping the talks secret, consumers and lawmakers have no idea what is happening and cannot intelligently participate in the discussions.

“After multiple extensions, enough is enough,” Dampier said. “Charter also hides from public view almost all the details about its progress in reports to the Commission, making it impossible for rural New Yorkers to know when they might expect to get wired for service.”

Dampier

Stop the Cap! recommends the PSC take the discussions public and let all New Yorkers have their say about what happens next. The consumer group also reminded the PSC that there are other matters that should be considered in the discussions, including a long-lasting strike of Charter’s workers in the New York City area that is impacting the quality of service for customers.

“Anyone who has had a service problem with Spectrum knows the more experienced a technician you get, the better,” Dampier said. “Using replacement workers or third-party outsourced technicians reduces customer satisfaction and often leaves problems unresolved.”

Stop the Cap! also repeated its recommendation that any assessed penalties or fines that come from any settlement should be targeted to improving broadband service in the state.

“There are more than 75,000 New York homes and businesses that have been thrown under the bus by the New York State Broadband for All program, which assigned slightly subsidized satellite internet access for those locations, making it harder than ever for future funding opportunities for wired broadband to reach these rural residents,” Dampier said. “Most funding programs exclude areas already provided with broadband expansion funds or served by another provider, regardless of how well that provider serves their customers.”

Stop the Cap! suggests that Charter be required to expand its rural broadband commitment to reach as many of the 75,000 stranded rural locations as economically feasible.

“It is about the only solution that can cut through the red tape at this point, because these locations are usually scattered across the state, making it unlikely another provider will ever show much interest,” Dampier said. “I know it isn’t ideal to stick these homes and businesses with a cable company with a poor customer satisfaction score, but when I hear from rural unserved New Yorkers, they are desperate and cannot wait 5-10 years for something else to come along, especially if it turns out to be low-speed DSL.”

Dampier also worries about the reputation of the PSC if it suddenly announces a settlement that allows Charter/Spectrum to stay.

“Last summer, every newspaper in the state reported Charter was being thrown out of New York. Many consumers were thrilled. Then things went quiet as the public learned about extension after extension, delay after delay” Dampier said. “If the Commission suddenly announces the case is settled and Charter can stay without explaining why that is the right decision, a lot of New Yorkers are going to accuse the Commission of selling them out. Comments like that are already appearing in the docket from fed up New Yorkers who have run out of patience.”

The full text of the Stop the Cap! letter follows:

 

February 19, 2019

Hon. Kathleen H. Burgess
Secretary to the Commission
New York State Public Service Commission
Three Empire State Plaza
Albany, NY 12223-1350

Re: 15-01446/15-M-0388 Joint Petition of Charter Communications and Time Warner Cable for Approval of a Transfer of Control of Subsidiaries and Franchises, Pro Forma Reorganization, and Certain Financing Arrangements.

Dear Secretary Burgess,

Please share our comments with Chairman John B. Rhodes and Commissioners Gregg C. Sayre, Diane Burman, and James S. Alesi.

As a party in the proceeding whose views and recommendations were recognized by the Commission and its staff in drafting a final Merger Order granting Charter Communications its request to merge with Time Warner Cable, we remain actively interested and engaged in this transaction on behalf of consumers in New York.

As you know, most Upstate New Yorkers have just one choice for a telecommunications supplier capable of achieving the FCC’s broadband speed benchmark of 25/3 Mbps. That company is generally Charter Communications. Wireline phone companies in much of western, central, and northern New York offer DSL service to many of their customers, often at speeds well below the FCC’s definition of broadband. At our location, incumbent local exchange carrier Frontier Communications only offers up to 3.1 Mbps, a speed few consumers would consider acceptable in 2019. As a result, whatever cable company offers service in large parts of Upstate and Western N.Y. enjoys a de facto monopoly on broadband service in most of these areas.

In July, 2018 the Commission rightly found that despite multiple warnings, Charter Communications flagrantly failed to meet its obligations to New York as part of the Commission’s Merger Order. Charter Communications has failed to challenge that decision in court or offer credible evidence to rebut your conclusions. In fact, the company has largely relied on selective interpretations of the Merger Order to renege on its rural broadband expansion commitments – a key condition that was necessary for this merger to be in the public interest. While counting new passings in the urban New York City area, the company was also running television ads promoting its rural broadband expansion that we believe misled customers about Charter’s true performance of meeting its commitments to New York.

However, nearly seven months after the Commission voted to effectively expel Charter Communications from New York, the Commission and/or its staff has instead entered into in-camera negotiations with the cable company in what we can only suspect is an effort to enforce Charter’s compliance with the original Merger Order in return for a settlement eventually dispensing with the July 2018 Revocation order.

While we have no objection to the Commission’s actions seeking Charter’s compliance with its merger obligations, we remain concerned that these ongoing negotiations have remained secret for over half a year, with little ability for public interest groups, consumers, and others to provide informed input in those discussions or track their progress. Virtually all of the compliance reports submitted by Charter since the Revocation Order are also heavily redacted, leaving the public and lawmakers in the dark.

A growing number of New Yorkers are now questioning the credibility of the Commission in public comments in the docket. For example, Matt Stern on Nov. 26, 2018 (Comment 572) opined:

“Negotiations done in secret with never ending extensions are not in the best interest of the people of NYS. […] Charter has made little or no line extensions in my town in 20 years. 2 full decades. Many of us live less than 1 mile from the existing infrastructure. This is the same all over upstate NY. We are tired of excuses. If you are unable to secure these necessary infrastructure expansions then resign immediately. We are done waiting.”

Wayne Martin offered in comment 576 (Dec. 15, 2018):

“Surprise, surprise, surprise, another extension granted. The (non)actions of this commission are a slap in the face to the taxpayers of New York.”

On Dec. 18, 2018, Assemblyman Anthony Brindisi (Comment #580) asked the Commission to cease granting extensions to Charter:

“It is simply unacceptable to keep delaying Charter’s exit from New York State if they cannot meet their obligations to customers. While the company keeps getting extensions granted, I am hearing on a daily basis from Charter customers experiencing poor service and increased rates. […] The PSC’s November 23, 2018 order granting Charter an extension until January 11, 2019 to present its exit plan reads, in part, “The Compliance and Revocation Orders were designed to deal with very serious consumer issues presented by Charter’s conduct related to the company’s network expansion.” This is exactly the problem. Charter has had since July to prepare an exit strategy and delaying it any further is not in the best interests of its customers, many of whom rely on cable and internet service for their job, or to communicate with family members.”

On Feb. 6, 2019, Adam Nash complained about the Commission’s repeated extensions in Comment 614:

“[…] I’m concerned with constant extensions Time Warner has been given since July, 2018, so far they’ve been given 5. If this commission was serious on this matter there wouldn’t be this many extensions. It was stated in a article done by the Times Union News in Oct, 2018 that, “Staff believes that the commission should direct that any request granted in response to Charter’s most recent filing be final in form and that any additional time allowed must either result in a settlement agreement being presented to the commission or the cessation of settlement talks,” PSC acting general counsel John Sipos wrote in response to Charter’s request.” This statement was made when it was at its 3rd extension, NYS is at its 5th currently.”

We believe it is long past time for the Commission to publicly disclose the nature of the ongoing negotiations, specific details about the progress that has been made, and the ultimate goal of these discussions. The Commission’s July 2018 Revocation Order provoked shock headlines in the media across the state, and consumers have the expectation Charter will be leaving the state. If that ultimately does not happen, the Commission should be prepared to explain why.[1]

Our group’s view is that Charter Communications must meet each and every obligation in the Commission’s Merger Order if it wants to do business in New York and that a significant penalty is now due for failing to meet those obligations on a timely basis.

We also believe a long-standing labor dispute between the company and its unionized workforce is having an ongoing detrimental impact on the quality of service received by customers in the New York City area. We recommend the Commission undertake an investigation to see how this dispute is impacting customers.

We recommend you review our submission (item #278) of Apr. 5, 2018 recommending specific penalties against Charter that would, among other things, expand the company’s rural broadband expansion commitment even further (either in lieu of, or in addition to, financial penalties) to assist at least some of the 75,000+ unserved New York locations that are being offered substandard satellite internet access[2] from Hughes Network Systems, LLC. These locations lack wired broadband because no provider bid for financial assistance to undertake a buildout during the last round of the New NY Broadband Program, administered by the New York Broadband Program Office.[3]

These addresses are effectively stranded because programs offering public subsidy funding usually disqualify locations already provided with subsidies as duplicative.[4] But satellite internet providers cannot guarantee the speeds required to qualify as broadband, leaving those locations as a distinct disadvantage and less likely to ever get suitable broadband.[5] HughesNet also includes a very low data cap ranging from 10-50 GB.[6] In 2018, the average internet-connected home used 268 GB of data per month.[7] A penalty that includes an incentive or requirement for a private company like Charter to wire many of those locations offers a unique opportunity to resolve this serious problem. Charter offers customers at least 100 Mbps of speed and no data caps.

We appreciate the Commission and its staff’s hard work on this matter, and hope you will seriously consider our input and ideas, demonstrating once again that the New York Public Service Commission takes its obligations to the citizens of New York seriously.

Very truly yours,

Phillip M. Dampier
President and Founder

[1] “New York Moves to Kick Spectrum Out of State,” New York Times (Jul. 27, 2018) (https://www.nytimes.com/2018/07/27/nyregion/new-york-spectrum-charter-cable-broadband.html), “NY State Regulators Move to Order Charter Out of New York Over Alleged Broadband Woes,” WNBC-TV/NBC News (Jul. 27, 2018) (https://www.nbcnewyork.com/news/local/NY-PSC-Charter-New-York-489356141.html), “New York’s order kicking Spectrum cable out of state ‘pretty radical’,” The Post-Standard (Syracuse), (Jul. 27, 2018) (https://www.syracuse.com/news/index.ssf/2018/07/new_yorks_move_to_kick_spectrum_cable_out_of_state_pretty_radical.html), “PSC Orders Cable Giant Charter Out of NY,” (Albany) Times-Union, (Jul. 27, 2018)  (https://www.timesunion.com/business/article/PSC-holding-special-meeting-on-Charter-Friday-13109921.php), “New York tells Spectrum Cable to get out of the state,” The Buffalo News, (Jul. 27, 2018) (https://buffalonews.com/2018/07/27/psc-wants-spectrum-cables-owner-to-get-out-of-new-york/)

[2] Satellite Broadband Remains Inferior to Wireline Broadband (VantagePoint) (Sept., 2017) (https://www.vantagepnt.com/wp-content/uploads/dlm_uploads/2018/04/vps-satellite-broadband-remains-inferior-to-wireline-broadband-090717.pdf)

[3] “Broadband Delays Prompt Frustration in Rural NY” Lockport Union-Sun & Journal (Apr. 2, 2018) (http://www.govtech.com/network/Broadband-Delays-Prompt-Frustration-in-Rural-New-York.html)

[4] “While the first round NOFA was silent on the eligibility of such overlapping projects, the second round NOFA specifically stated that areas already served by a RUS incumbent service provider were not eligible for subsequent funding.” (Selected passage from USDA’s “Broadband Initiatives Program – Pre Approval Controls Audit Report 09703-0001-32”) (March, 2013) (https://www.usda.gov/oig/webdocs/09703-0001-32.pdf)

[5] “HughesNet service is available in the contiguous U.S., Alaska and Puerto Rico. Stated speeds and uninterrupted use of service are not guaranteed. Actual speeds will likely be lower than the maximum speeds during peak hours.” (HughesNet Subscriber Agreement last revised March 10, 2017 — PART I – KEY PROVISIONS – 1.1 SPEED CLAIMS AND DISCLAIMERS.) (http://legal.hughesnet.com/SubAgree-03-16-17.cfm)

[6] “HughesNet Gen5 Fair Access Policy for the 10 GB, 20 GB, 30 GB and 50 GB Service Plans” (http://legal.hughesnet.com/FairAccessPolicyGen5.cfm)

[7] “OpenVault U.S. Household Broadband Data Consumption” (Jan. 22, 2019) (http://openvault.com/openvault-broad-based-broadband-usage-acceleration-in-2018-1tb-power-users-double-to-4-12-of-all-households/)

Stop the Cap! Files FOIL Request to Force Charter to Disclose Customer Complaint Statistics

Stop the Cap! today appealed to New York’s Freedom of Information Law Officer to force Charter Spectrum to unredact customer complaint statistics on Charter Communication’s performance in New York since its 2016 merger with Time Warner Cable.

“Charter Spectrum’s merger with Time Warner Cable was only approved in New York after the company agreed to certain conditions that would allow the merger to be considered in the public interest,” said Stop the Cap! president and founder Phillip Dampier. “An annual review and at least a 17.5% reduction in the company’s video services complaint rate was part of that deal, but Charter won’t publicly state exactly how much of a reduction the company has achieved, claiming that information is ‘confidential’ and ‘secret.'”

“But Charter had no problem sharing its damage control explanation for why it is still dealing with a lot of angry customers annoyed about the increasing cost of doing business with Spectrum as a result of withdrawing promotions, forcing customers to rent expensive equipment, and deal with pricing and package changes that deliver fewer channels for more money,” Dampier added.

An example of the redactions (for public viewing) in Charter’s Feb. 4, 2019 letter to the NY State Department of Public Service (DPS).

Stop the Cap! argues the public has a right to know how well Charter is meeting its public interest commitments, especially after the state regulator voted last summer to kick the company out of New York (a decision that has been effectively stalled as Charter and DPS staff continue ongoing private settlement discussions.)

“Keeping complaint rates secret is an incentive for Charter to not invest adequately to deliver service improvements and its claim competitors will be able to exploit that information is laughable, as many New Yorkers have no other choice for high-speed internet service. It isn’t as if other cable companies are forcing their way into the state to offer customers another choice,” Dampier argued. “Charter is almost exclusively responsible for its complaint rate, based on how it chooses to conduct business. Had the company adopted more customer-friendly packages, services, and pricing, their complaint rate would have dropped like a rock.”

The letter in full:

February 6, 2019

Records Access Officer
Department of Public Service
Three Empire State Plaza
Albany, New York 12223

To Whom It May Concern:

We are requesting the release of an unredacted version of Charter’s 2018 PSC Video Complaint Data Report (three page letter dated 2/4/2019). Charter’s claim that this “sensitive” and “proprietary” information is useful to competitors is unproven and specious. Complaint rates are effectively modulated by a company’s choice of how it conducts its business, with or without the presence of an effective competitor. In this case, Charter admits its own business decisions, not competition, played a key role in the complaint rate, as shown below.

More importantly, this information was required to be submitted as part of the DPS Merger Approval Order granting Charter’s request to merge with Time Warner Cable. That merger was approved only after Charter agreed to certain obligations that would deliver sufficient pro-consumer benefits to meet the state’s requirement that the merger was in the public interest. A periodic review of Charter’s compliance is part of that process.

Charter is asking to keep such compliance information confidential, unreviewable, and unavailable to third party scrutiny. It also prevents organizations like ours, a party in the proceedings, from reviewing the data and submitting informed views to DPS commissioners and staff about the performance of Charter Communications under the Merger Approval Order.

Further, there is no demonstrable causal link shown between competitive injury and disclosure of video customer complaint rates that are the direct result of poor service experiences with Charter Communications. Charter is effectively asking the DPS to prohibit the public’s access to data that is part of a public interest test.

Allowing Charter to suppress public disclosure of raw data while leaving unredacted its damage control explanations for customer complaints also gives Charter an unfair advantage to explain away those complaints.¹

Requiring Charter to disclose customer dissatisfaction numbers is in the public interest and provides a strong incentive for Charter to provide better, more customer-responsive service to customers in New York, likely reducing the number of complaints from unhappy customers in the first place.

Therefore, we appeal to the FOIL Officer to release an unredacted version of the three-page compliance letter.

¹ “As the Commission is aware, changes—including improvements—can sometimes trigger complaints as customers adjust to new service options, promotions, and packages. Despite the increased level of activity and customer interaction related to integration and product advancement, Charter is pleased to report that both initial and escalated complaints have declined significantly compared to 2014 complaint numbers….” — 2018 PSC Video Complaint Data Submission, Charter Communications, 2/4/2019

Very truly yours,

Phillip M. Dampier
President and Founder

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  • Louis DiMeglio: LiveWire is the worst of them. Doesn't even function as a basic antenna....
  • Laura: Thank you for taking time to inform us so throughly! What about LiveWire?...
  • Mike: Have you tested "Live Wave" antennas. It plugs into a electrical wall outlet, then uses your house wiring as an antenna....
  • Jim: Wikipedia says 763 people live there and Google maps shows a sparse housing footprint. I am somewhat familiar with upstate NY having going to college...
  • Jim: CDMA ended up being a serious impediment to Verizon and Sprint network wise anyway....
  • Jim: No one actually believes Sprint will have 5G coverage in that area with their paltry 150mhz of band 41 do they?...
  • Louis DiMeglio: Umm History is a cable channel, not OTA. You won't get that with the largest antenna in the world....
  • Jane Grenon: I ordered my live wave antenna on Jan 24 and just received it today on March 22. I had gotten through to customer service 2 weeks ago and they said it...

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