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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.

Huge Optimum Outage, No Refunds, and Callers Learn Customer Service is “Disconnected”

Phillip Dampier September 10, 2019 Altice USA, Consumer News No Comments

No customer service for you.

“The number you have dialed has been disconnected or is no longer in service. Please check the number and dial again.”

When Altice USA/Optimum customers discovered their TV and internet service stopped working Friday night in parts of New Jersey, New York and Connecticut, many called the customer service number printed on their monthly bill and discovered it was “disconnected or no longer in service.”

Outraged customers took to Twitter to express their displeasure.

“Since you shut off your Customer Service line, we all deserve a hefty credit to our accounts. ‘We’re always here to answer your questions.’ NO clearly you’re not, otherwise we’d be able to call you when there’s a sudden outage across multiple cities & no one knows why,” Nathalie Levey tweeted in frustration.

With the widespread outage affecting at least tens of thousands of customers across three states, some found other phone numbers to reach out to Optimum, but those lucky enough to get through were left languishing on hold “for hours,” according to the Connecticut Post. More than a few decided calling 911 was a better idea, much to the consternation of local police departments across the northeast that asked them to stop.

For some reason, Optimum phone service still worked for some, but not others. But it proved useless for reaching the cable company, with a recorded message asking callers to try again later. But calls placed from mobile phones or landlines still managed to get through, sometimes.

…when it works

It was an outage made to frustrate, in part because shortly after Altice acquired Optimum from Cablevision in 2016 as part of a $17.7 billion dollar acquisition, Altice promptly closed down Optimum’s call centers in Shelton and Stratford, Conn., employing nearly 600 workers.

An Altice spokesperson curtly described the outage as “power related” and left it at that, refusing to indicate if customers would be given a bill credit for the outage.

“We still don’t know, because you can’t reach these people on the phone at all and the people at the local cable store tell you that you have to call in, so they are also useless,” complained Sally Davis, an Optimum customer near Litchfield.

There may be another way to ask for a refund, but there is no proof it will actually result in a future bill credit:

The company maintains a general website where customers can request bill credits as noted by Hal Levy, chairman of a regional cable TV advisory council that keeps tabs on carriers and the quality of services they provide. The website on Monday directed customers to telephone, online chat and Twitter for follow-up on requests for bill credits.

“In past instances of widespread outages when the company was owned by Cablevison, automatic bill credits were issued to subscribers,” Levy wrote in an email to Hearst Connecticut Media.

The newspaper notes the outage hit just two weeks after Altice USA tacked $5 onto the rate for Connecticut customers who subscribe to its “Premier” TV package, raising the monthly charge to $110 on par with the rate for a “Gold” plan the company discontinued, while transitioning those subscribers to “Premier” status.

“Who are they kidding?,” Davis told Stop the Cap! “Optimum treats its customers to ‘PoS status.’ I wish we had FiOS.”

Verizon Wireless Sues Rochester, N.Y. for Discrimination Over Forthcoming 5G Small Cells

Verizon Wireless has sued the City of Rochester, N.Y. in a potentially precedent-setting case, for demanding excessive and discriminatory fees to use public rights-of-way to deploy a fiber backhaul network and hundreds of small cells to support the introduction of 5G wireless service in the community.

The lawsuit, Cellco Partnership (d/b/a Verizon Wireless) v. City of Rochester seeks a declaratory judgment acknowledging that local laws regarding the use of rights-of-way by telecommunications companies have been largely overridden by the Trump Administration’s Federal Communications Commission. Under FCC guidelines, the maximum compensation rate a city can generally collect is $270 annually for each small cell site, far less than what the City of Rochester hopes to collect from telecommunications companies planning to dig up streets and place hundreds of small cell antennas on utility and light poles across the city.

The two parties are far apart on what defines fair and just compensation. In early 2019, the City of Rochester introduced a new fee schedule that seeks $1,500 annually for the use of each publicly owned utility or light pole, and $1,000 per standalone “smart pole” erected by a wireless company to support a small cell. Verizon Wireless wants to pay no more than $270 annually for either type.

The City also wants compensation to cover “administrative costs for retaining and managing documents and records,” “costs for managing, coordinating and responding to public concerns and complaints,” and “the costs of the City’s self-insurance.” Verizon Wireless’ attorneys argue that the FCC’s “presumptive limit” of $270 annually is all-inclusive, and therefore the fees requested are inherently unreasonable.

The City ordinance is also designed to discourage providers from installing cables on existing utility poles, preferring underground installation.

“Aerial installation of fiber or other telecommunications facilities and accessory equipment strung between poles, buildings, or other facilities, is strongly discouraged due to area weather, safety concerns, limited capacity, and aesthetic disturbances,” the ordinance reads. But Verizon Wireless argues the extra fees demanded by the City for underground burial of fiber optic cable are illegal under federal law.

“The Code’s ‘underground’ fee structure is not a reasonable approximation of actual cost, is not objectively determined, and is discriminatory,” Verizon Wireless argues.

The City’s fees for fiber optic cable installation are significant. Verizon Wireless’ lawsuit notes fees start at $10,000 for up to 2,500 linear feet of installed fiber optic cable, plus an additional $1.50 for each additional foot from 2,500-12,500 feet and $0.75 for each additional foot above 12,500 feet. After the first year, fees continue at $5,000 annually for up to 2,500 feet, $1 for each additional foot from 2,500-12,500 feet, and $0.50 for each additional foot above 12,500 feet. Somewhat lower fees apply if Verizon places its fiber cables in an existing conduit with other cables, or if it uses directional boring to place conduit and wiring without disturbing lawns, roads, or sidewalks.

Curtin

Verizon Wireless’ attorneys argue the fees cannot possibly reflect the City’s true costs because the charges are the same regardless if Verizon installed three feet or 2,000 feet of fiber optic cable.

But City Corporation Counsel Tim Curtin told the Democrat & Chronicle the city’s new fee schedule is comparable to what other cities are charging, and the City is planning more restrictions to keep providers from repeatedly digging up streets and yards to place new cable and equipment.

“This is a serious problem with people digging up the same right of way every other day and not repairing it,” Curtin told the newspaper.

The City is also exploring passing a new “dig once” policy that would incentivize providers to coordinate fiber installation to place wiring and equipment in a single shared conduit in return for lower fees. But providers like Verizon Wireless consider it in their competitive advantage to wire cities like Rochester before their competitors do.

“To better serve its customers and the City and to begin to serve new customers and provide new services, Verizon Wireless seeks to extend, densify, and upgrade its wireless network infrastructure [in Rochester], including to install additional Small Wireless Facilities to support the provision of current and next-generation telecommunications services such as 5G and to deploy fiber to connect these facilities. To successfully do this, Verizon Wireless requires new approvals from [the City of Rochester] to access City property,” Verizon’s lawsuit states. Because of the City’s fees and policies, “Verizon Wireless has been, and will continue to be, damaged and irreparably harmed, […] [including] an effective prohibition on Verizon Wireless’s ability to provide telecommunications services in the affected area of the City.”

In short, Verizon Wireless is threatening not to deploy 5G service in the area if the City successfully defends its fees and requirements.

Curtin argues Verizon Wireless is the only provider unwilling to comply with the City’s requirements, while others are moving forward under the new ordinance. One provider likely covered by Curtin’s claim is residential fiber overbuilder Greenlight Networks, which has installed fiber to the home service across several city neighborhoods for the past several years. But in 2019, Greenlight began focusing on installations in suburbs west of Rochester, and several city neighborhoods proposed for service have languished for years with “easements required” status, which could reflect Greenlight’s reluctance or ability to pay the City’s new fees.

Verizon has been the most aggressive wireless provider in Western and Central New York with respect to the proposed 5G service expansion. In addition to being the incumbent local telephone company in several New York cities (excluding Rochester), it has also offered spotty FiOS fiber to the home service in several suburbs of Buffalo and Syracuse.

A small cell

In contrast with Rochester, the City of Syracuse decided to effectively “partner” with Verizon Wireless to deploy 5G small cells to be considered America’s “first fully 5G city.” To win Verizon over, the City mothballed its existing fee policy in 2019 that charged $950 per small cell tower, resetting the rate to match the FCC’s presumed maximum of $270 annually. In return, Verizon has tentatively agreed to place up to 600 smart cell poles around the city, paying $162,000 a year. Verizon also agreed to pay a $500 application fee for each pole project (covering up to a maximum of five poles per project). Nobody is certain whether 600 smart cells are enough to saturate the city with 5G coverage, where exactly Verizon will ultimately place the small cells, or exactly when.

Ken Schmidt, president of Steel in the Air, a consultant to public and private landowners and municipalities on matters related to wireless infrastructure valuation, offered to advise the City of Syracuse for free about its agreement with Verizon Wireless, but the City never returned his calls, despite his direct experience working with other cities that negotiated with Verizon Wireless over 5G smart cells, pole attachment fees, and antenna placement rules.

“Syracuse seems to have bent over backward for Verizon,” Schmidt argues on his blog. “Make no mistake, there are benefits to becoming a 5G city, but this agreement does no more for Syracuse than it does for other cities where Verizon promised the same thing. At least some of the other cities didn’t enter into such a one-sided agreement. For example, SacramentoSan Diego and San Jose negotiated better terms and conditions than Syracuse did, and will have a similarly robust small cell deployment.”

Many consultants recommend that cities consider whether Verizon’s threats not to deploy 5G service are real, especially considering the company’s PR claims that moving forward with 5G is essential to Verizon’s network expansion.

Schmidt

Schmidt acknowledges the current FCC has a vested interest in helping large wireless companies deploy 5G infrastructure with a minimum of interference or fees from local governments.

“While the City could have negotiated a higher amount for the pole access rights or permit fees, it would have had to demonstrate that its actual costs in reviewing small cell applications and maintaining the rights-of-way were higher than the nominal fees allowed by the FCC,” Schmidt said.

Verizon’s lawyers appeared to outmaneuver the City’s attorneys by winning a number of concessions for Verizon that Syracuse will have to live with for up to 45 years. Schmidt’s recommendations may be useful to other cities, including Rochester, wrestling with these issues.

Schmidt:

Syracuse granted rights to Verizon for upward of 45 years when it didn’t have to. The city signed a master license agreement for 20 years, which allows Verizon to install poles under individual pole licenses that run up to 25 years from the date the pole was installed. Thus, if a pole is installed in year 20, it will be there for another 25 years. In short, the city is entering a possible 45-year agreement even though there is no legal requirement to do so by the FCC or any other agency. While Verizon surely prefers a much longer agreement, other cities are entering much shorter, 10-year agreements with Verizon. Verizon retained the right to terminate “at any time for any reason or no reason by written notice to the city,” but the city does not have the same right. So, the city is now committed to this specific agreement legally, regardless of what happens with technology in the future.

The agreement entered into by the city concedes unnecessary rights to Verizon under contract law. The agreement is substantially the same as other agreements proposed by Verizon to other cities. It attempts to incorporate many of the standards from the FCC Order into the license agreement. From a legal perspective, these clauses did not need to be in the license agreement. If Verizon felt the city was not adhering to the FCC order, Verizon by default has the option of requesting relief from the FCC or filing in federal court for injunction or damages. However, by adding the language in the license agreement, Verizon can now file in state court on a civil claim if Verizon believes the city is in breach of the agreement and collect monetary damages. This is absolutely of no benefit to Syracuse.

Other cities have received additional compensation in the form of public safety or “internet of things” monitoring and services, and higher fees to help pay for additional staff to review small cells applications. Syracuse received nothing. In fairness, the other cities are bigger and more important to Verizon than Syracuse. Nonetheless, the only concession Verizon appears to have made to Syracuse is the requirement for Verizon to monitor a limited set of small cells for compliance with applicable radio frequency emission standards. Verizon did not commit to deploying a certain number of small cells by any date. It is not required to deploy in the poorer areas of the city. And it did not commit to smart city initiatives or research on how 5G can benefit the residents of Syracuse.

The agreement gives the city limited rights to terminate, even if health risks are identified and proven. The city, in what appears to be an effort to appease its citizens that small cells are safe, inserted language that requires Verizon to test up to 5% of the small cells annually to confirm that they meet the minimum applicable health, safety and radio frequency regulations. The city could also test on its own, but only to confirm compliance with applicable FCC standards. By agreeing to a long-term license with limited rights to terminate, the city could be legally committed to Verizon small cells in the public right of way even if there is ample evidence that they should be removed, unless the FCC revokes its order.

By agreeing to such a one-sided agreement, the city has condemned itself to agree to similar agreements with any company providing wireless services who want to deploy in the right-of-way. Under the FCC Order and previous case law regarding the Telecommunications Act of 1996, the city may not discriminate between similar providers of wireless services. By agreeing to the terms with Verizon, the city will have a difficult time agreeing to different terms with other providers.

NY PSC Clarifies Broadband Speed Requirement Merger Terms

Charter Communications is not obligated to upgrade New York internet customers to a minimum internet speed of 300 Mbps, according to a letter of clarification directed to Stop the Cap! and received today from the New York State Department of Public Service.

DPS:

In the Commission’s 2016 order, Charter was required to offer broadband internet service with speeds up to 100 Mbps to all customers served by its New York networks (including its Columbia County systems) by the end of 2018; and offer broadband internet service with speeds up to 300 Mbps to all customers served by its New York networks by the end of 2019. At the time of the Commission’s decision, although Time Warner operated some systems in New York that were already capable of offering customer speeds up to 300 Mbps, the majority of Time Warner customers in Upstate New York were limited to broadband speeds of 50 Mbps.

Charter was therefore required to upgrade its network to be able to offer broadband service at speeds up to 300 Mbps by the end of 2019 but was not required to increase its minimum service offering to 300 Mbps. Charter has reported that it has complied with this condition ahead of schedule and Department of Public Service Staff has begun the process of independently field-testing Charter’s network to verify compliance with the condition.

Stop the Cap! raised this issue with the Commission as part of the recent settlement agreement between New York State and Charter Communications, and sought an official clarification. Approximately 40% of Charter’s national footprint now receives 200 Mbps download speeds while most New Yorkers receive just 100 Mbps for the same price, putting the state at a disadvantage.

Dampier

“The Commission’s language in the original merger agreement was unclear, because Time Warner Cable had already embarked on a statewide upgrade to its so-called ‘Maxx’ service tiers, which included free speed increases, negating most of the benefits of the state’s condition requiring Charter to upgrade broadband speeds as part of its terms to approve the merger,” said Phillip Dampier, founder and president of Stop the Cap! “In fact, this merger made things worse for New Yorkers because customers would have been getting Time Warner Cable Maxx speeds as much as a year earlier than what Spectrum finally delivered across the state, and customers would have been offered a number of options for less costly internet service that Spectrum dropped.”

Shortly after the merger was approved, Charter placed a moratorium on Time Warner Cable Maxx upgrades and spent months attempting to knit Charter’s existing systems with the much larger Time Warner Cable.

Time Warner Cable Maxx speeds were well on the way throughout Upstate New York before Charter acquired the company and issued an upgrade moratorium.

“Consumers already know from their cable bills that this merger was just another bad deal for New York, and now nearly half of Spectrum’s national service area gets twice the speed Upstate New York gets for the same price, and there is no pressure on the company to deliver any additional upgrades,” Dampier added.

Stop the Cap! also urged the Commission to do all it could to make life easier for customers in the New York City area, where Charter has been trying to rid itself of union technicians that have been on strike for over two years.

“For all the talk by state officials, including the governor, it appears there is no end in sight for this strike and customers are caught in the middle,” Dampier said. “We hear frequently from New York City consumers about substandard repair work and unacceptable installations that suggest the company is not using the best available workforce to take care of customer needs. Charter is making loads of money in profits and can afford to offer a square deal to workers to end this strike and get these technicians back to work.”

What’s Eating Your Comcast Data Cap?

Comcast has put its proverbial finger to the wind to define an “appropriate” data cap it declares “generous,” regardless of how subjectively random that cap happens to be. Although 1,000 GB — a terabyte — usage allowance represents a lot of internet traffic, more and more customers are finding they are flirting with exceeding that cap, and Comcast has never been proactive about regularly adjusting it to reflect the reality of rapidly growing internet traffic. That means customers must protect themselves by checking their usage and take steps if they are nearing the 1 TB limit.

If you do exceed your allowance, Comcast will provide two “grace periods” that will protect you from overlimit fees, currently $10 for each extra 50 GB allotment of data you use. Another alternative Comcast will happily sell you is an insurance policy to prevent any risk of overlimit fees. For an extra $50 a month, they will take the cap off your internet plan allowing unlimited usage. But $50 a month is close to paying for your internet service twice and is indefensible considering how little Comcast pays for its customers’ internet traffic. It is just one more way Comcast can pick up extra revenue without doing much of anything.

Customers that do regularly break through the 1 TB data cap often have a guilt complex, believing they have no right to complain about data caps and should pay more because they must cost Comcast a lot more money to service. In fact, Time Warner Cable executives broadly considered internet traffic expenses as little more than a “rounding error” to their bottom line, according to internal emails obtained by the New York Attorney General’s office. Managing customers’ data usage is far less costly than network plant upkeep, the regularly increasing costs of video content, and expenses related to expanding service to new locations.

One VentureBeat reader investigated what chewed through Comcast’s data allowance the most, and it wasn’t easy:

Xfinity pretends to make this easier for you, but that’s a load of horsesh*t. Its X-Fi app claims to give you usage stats for your connected devices — only nothing appears up-to-date. The phone I was using to look at the X-Fi app doesn’t even appear on the connected-devices list. You also have to look at each device individually. I saw no way to sort a list of devices by data usage, which would obviously help a lot.

Some of the biggest data users are connected households, where multiple family members use a range of devices, often at the same time. Customers with multiple internet-connected computers, video game consoles, and streaming devices are most at risk of exceeding their cap.

Video Games Consoles/PCs

The biggest data consumption does not come from gameplay itself. It comes from frequent software updates, some exceeding 50 GB. If you play a number of games, updates can come frequently. In the case of the VentureBeat author, 17% of daily usage came from the home’s primary desktop PC. Another 12% was traced to the family’s Xbox One. An in-home media server that also runs Steam and auto-updates frequently was also suspect.

Streaming Devices

If you are not into video games and do not depend on cloud storage or large file transfers to move data back and forth, streaming set-top boxes and devices are almost certainly going to be the primary source of your biggest monthly data usage. Video resolution can make a difference in how much data is consumed. If you are regularly approaching or exceeding your monthly cap, consider locking down maximum video resolution for streaming on large televisions to 720p, and 480p for smartphones. Some streaming services offer customized resolution options in their settings menu.

Autoplay, also known as the ‘binge’ option can also consume a lot of video when a service automatically starts playback of the next episode in a series. Some people switch off their televisions without stopping video playback, which can mean you watched one episode but actually streamed six or more. Check the streaming software for an option to not autoplay videos.

Remember that cable TV replacements like DirecTV Now and YouTube TV will continue streaming live broadcasts until you stop them. Do not just switch off the television. Many live/linear TV apps will prompt you every few hours if you have not changed channels to make sure there is someone still watching. If you do not respond, streaming will stop automatically.

Cloud Storage Backups

When customers report staggering data usage during a month, cloud storage backup software is often the culprit. If you are new to cloud storage backup services like Dropbox or Carbonite, your PC may be uploading a significant part of your hard drive to create a full backup of your computer. This alone can consume terabytes of data. Fortunately, most backup services throttle uploads and do not automatically assume you need to backup your entire hard drive. Many offer options to limit upload speed, the total amount of data that can be uploaded each month, and options to selectively backup certain files and folders. 

Your Wi-Fi Network is Insecure

In areas where data caps are pervasive, those who want to use a lot more data and do not want to pay for it may quietly hop on your home Wi-Fi network and effectively bill that usage to you. This is most common in large multi-dwelling units where lots of neighbors are within range of your home Wi-Fi. The best way to reduce the risk of a Wi-Fi intrusion is to create a password that is exceptionally difficult to guess, using a mixture of special characters (!, ^, %, etc.) and mixed case random letters and numbers. Although this can be inconvenient for guests, it will probably keep intruders out and prevent them from running up your bill.

It is unfortunate customers have to jump through these kinds of hoops and compromise their online experience. But where cable and phone companies lack competition, they can charge a small fortune for internet access and still feel it is appropriate to cap usage and ask for even more money when customers “use too much.”

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