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Stop the Cap! Will Participate in New York State’s Review of Charter-Time Warner Merger

stop-the-capStop the Cap! will formally participate in New York State’s regulator review of the proposed merger of Charter Communications and Time Warner Cable.

“We will be submitting documents and testimony to the New York State Department of Public Service on behalf of consumers across the state that need a better deal from their cable company,” said Phillip Dampier, the group’s president. “A review of the current proposal from Charter is inadequate for New York ratepayers and most of Charter’s commitments for better service and lower prices expire after just three short years.”

Stop the Cap! will urge regulators to insist on significant changes to Charter’s proposal that will permanently guarantee a broadband future with no compulsory usage caps/usage-based billing, Net Neutrality adherence, affordable broadband to combat the digital divide, and upgrades that deliver faster broadband than what Charter currently proposes outside of New York City.

Dampier

Dampier

“Upstate New York is at serious risk of falling dramatically behind other areas where Google Fiber and other providers are moving towards a gigabit broadband future,” Dampier said. “In most of Buffalo, Rochester, Syracuse, Binghamton, and Albany buying the FCC’s definition of broadband means calling a cable company that now delivers no better than 50Mbps to residential customers. Verizon FiOS expansion is dead and obsolete/slow DSL from Frontier and Verizon should have been scrapped years ago.”

Stop the Cap! worries that with limited prospects for a major new competitor like Google in Upstate New York, broadband speeds and service will not keep up with other states. Verizon has devoted most of its financial resources to expanding its wireless mobile network, which is too expensive to use as a home broadband replacement. Frontier claims to be investing millions in its networks, but has delivered only incremental improvements to their DSL service, which in most areas is still too slow to qualify as broadband.

“Frontier is more interested in acquisitions these days, not upgrades,” Dampier argued.

“Although we have some entrepreneurs managing to deliver competitive fiber service in limited areas, it will likely take years before they will reach most customers,” Dampier added. “Upstate New York cannot wait that long.”

Big City Telecom Infrastructure is Often Ancient: Conduits 70+ Years Old, Wiring from 1960s-1980s

A panel electromechanical switch similar to those in use in New York until the 1970s.

A panel electromechanical switch similar to those in use in New York until the 1970s. They were installed in the 1920s.

As late as the 1970s, New York Telephone (today Verizon) was still maintaining electromechanical panel switches in its telephone exchanges that were developed in the middle of World War I and installed in Manhattan between 1922-1930. Reliance on infrastructure 40-50 years old is nothing new for telephone companies across North America. A Verizon technician in New York City is just as likely to descend into tunnels constructed well before they were born as is a Bell technician in Toronto.

Slightly marring last week’s ambitious announcement Bell (Canada) was going to commence an upgrade to fiber to the home service across the Greater Toronto Area came word from a frank Bell technician in attendance who predicted Bell’s plans were likely to run into problems as workers deal with aging copper infrastructure originally installed by their fathers and grandfathers decades earlier.

The technician said some of the underground conduits he was working in just weeks earlier in Toronto’s downtown core were “easily 60-70 years old” and the existing optical fiber cables running through some of them were installed in the mid-1980s.

At least that conduit contained fiber. In many other cities, copper infrastructure from the 1960s-1980s is still in service, performing unevenly in some cases and not much at all in others.

Earlier this year, several hundred Verizon customers were without telephone service for weeks because of water intrusion into copper telephone cables, possibly amplified by the corrosive road salt dumped on New York streets to combat a severe winter. Verizon’s copper was down and out while its fiber optic network was unaffected. On the west coast, AT&T deals with similar outages caused by flooding. If that doesn’t affect service, copper theft might.

munifiber

Fiber optic cable

Telephone companies fight to get their money’s worth from infrastructure, no matter how old it is. Western Electric first envisioned the panel switches used in New York City telephone exchanges until the end of the Carter Administration back in 1916. It was all a part of AT&T’s revolutionary plan to move to subscriber-dialed calls, ending an era of asking an operator to connect you to another customer.

AT&T engineer W.G. Blauvelt wrote the plan that moved New York to fully automatic dialing. By 1930, every telephone exchange in Manhattan was served by a panel switch that allowed customers to dial numbers by themselves. But Blauvelt could not have envisioned that equipment would still be in use fifty years later.

As demand for telephones grew, the phone company did not expand its network of panel switches, which were huge – occupying entire buildings – loud, and very costly to maintain. It did not replace them either. Instead, newer exchanges got the latest equipment, starting with more modern Crossbar #1 switches in 1938. In the 1950s, Crossbar #5 arrived and it became a hit worldwide. Crossbar #5 switches usually stood alone or worked alongside older switching equipment in fast growing exchanges. It occupied less space, worked well without obsessive maintenance, and was reliable.

It was not until the 1970s that the Bell System decided to completely scrap their electromechanical switches in favor of newer electronic technology. The advantages were obvious — the newer equipment occupied a fraction of the space and had considerably more capacity than older switches. That became critical in New York starting in the late 1960s when customer demand for additional phone lines exploded. New York Telephone simply could not keep up with and waiting lists often grew to weeks as technicians looked for spare capacity. The Bell System’s answer to this growth was a new generation of electronic switches.

The #1 ESS was an analog electronic switch first introduced in New Jersey in 1965. Although it worked fine in smaller and medium-sized communities, the switch’s software bugs were notorious when traffic on the exchange reached peak loads. It was clear to New York Telephone the #1 ESS was not ready for Manhattan until the bugs were squashed.

Bell companies, along with some independent phone companies that depended on the same equipment, moved cautiously to begin upgrades. It would take North American phone companies until August 2001 to retire what was reportedly the last electromechanical switch, serving the small community of Nantes, Quebec.

ATT-New-York-central-office-fire-300x349

A notorious 1975 fire destroyed a phone exchange serving lower Manhattan. That was one way to guarantee an upgrade from New York Telephone.

On rare occasions, phone companies didn’t have much of a choice. The most notorious example of this was the Feb. 27, 1975 fire in the telephone exchange located at 204 Second Avenue and East 13th Street in New York. The five alarm fire destroyed the switching equipment and knocked out telephone service for 173,000 customers before 700 firefighters from 72 fire units managed to put the fire out more than 16 hours later. That fire is still memorialized today by New York firefighters because it injured nearly 300 of them. But the fire’s legacy continued for decades as long-term health effects, including cancer, from the toxic smoke would haunt those who fought it.

The New York Telephone building still stands and today also houses a street level Verizon Wireless retail store.

New York Telephone engineers initially rescued a decommissioned #1 Crossbar switch waiting to be melted down for scrap. It came from the West 18th Street office and was cleaned and repaired and put into emergency service until a #1 ESS switch originally destined for another central office was diverted. This part of Manhattan got its upgrade earlier for all the wrong reasons.

Throughout the Bell System in the 1970s and 80s, older switches were gradually replaced in favor of all electronic switches, especially the #5 ESS, introduced in 1982 and still widely in service today, serving about 50% of all landlines in the United States. Canadian telephone companies often favored telephone switches manufactured by Northern Telecom (Nortel), based in Mississauga, Ontario. They generally worked equally well as the American counterpart and are also in service in parts of the United States.

The legacy of more than 100 years of telephone service has made running old and new technology side by side nothing unusual for telephone companies. It has worked for them before, as has their belief in incremental upgrades. So Bell’s announcement it would completely blanket Toronto with all-fiber service is a departure from standard practice.

For Bell in Toronto, the gigabit upgrade will begin by pushing fiber cables through existing conduits that are also home to copper and fiber wiring still in service. If a conduit is blocked or lacks enough room to get new fiber cables through, the Bell technician predicted delays. It is very likely that sometime after fiber service is up and running, copper wire decommissioning will begin in Toronto. Whether those cables remain dormant underground and on phone poles for cost reasons or torn out and sold for scrap will largely depend on scrap copper prices, Bell’s budget, and possible regulator intervention.

But Bell’s upgrade will clearly be as important, if not more so, than the retirement of mechanical phone switches a few decades earlier. For the same reasons — decreased maintenance costs, increased capacity, better reliability, and the possibility to market new services for revenue generation make fiber just as good of an investment for Bell as electronic switches were in the 1970s and 1980s.

[flv]http://www.phillipdampier.com/video/ATT Reconnecting 170000 Phone Customers in NYC After a Major Fire 1975.mp4[/flv]

AT&T produced this documentary in the mid-1970s about how New York Telephone recovered from a fire that destroyed a phone exchange in lower Manhattan and wiped out service for 173,000 customers in 1975. The phone company managed to get service restored after an unprecedented three weeks. It gives viewers a look at the enormous size of old electromechanical switching equipment and masses of phone wiring. (22:40) 

Charter Asks FCC to Approve Time Warner Cable/Bright House Merger; Stop the Cap! Urges Changes

charter twc bhCharter Communications last week filed its 362 page redacted Public Interest Statement laying out its case to win approval of its acquisition of Time Warner Cable and Bright House Networks, to be run under the Charter banner.

“Charter may not be a household name for all Americans, but it has developed into an industry leader by implementing customer and Internet-friendly business practices,” its statement reads.

The sprawling document is effectively a sales pitch to federal regulators to accept Charter’s contention the merger is in the public interest, and the company promises a range of voluntary and committed service upgrades it says will improve the customer experience for those becoming a part of what will be America’s second largest cable operator.

Charter’s proposed upgrades fall under several categories of direct interest to consumers:

Broadband: Charter will commit to upgrade customers to 60Mbps broadband within 30 months (about 2.5 years) after the deal is approved. That could mean some Time Warner Cable customers will still be serviced with standard speeds of 15Mbps as late as 2018. Time Warner Cable’s Maxx upgrade program will be effectively frozen in place and will continue in only those areas “consistent with Time Warner Cable’s existing deployment plans.” That will leave out a large sections of the country not on the upgrade list. Charter has committed to impose no data caps, usage-based pricing or modem fees, but only for three years, after which it will be free to change those policies at will.

Wi-Fi: Charter promises to build on Time Warner’s 100,000 Wi-Fi hotspots, most in just a few cities, and Bright House’s denser network of 45,000 hotspots with a commitment to build at least 300,000 new hotspots across Charter’s expanded service area within four years. Charter will also evaluate deploying cable modems that also act as public Wi-Fi hotspots. Comcast already offers over 500,000 hotspots with plans for many more, making Charter’s wireless commitment less ambitious than what Comcast today offers customers.

Cable-TV: Charter has committed to moving all Time Warner and Bright House systems to all-digital service within 30 months. Customers will need to lease set-top boxes designed to handle Charter’s encryption system for all cable connected televisions. Among those boxes includes Charter’s new, IP-capable Worldbox CPE and cloud-based Spectrum Guide user interface system.

Video on the Go: Charter will adopt Time Warner Cable’s streaming platform and apps to provide 300 streaming television channels to customers watching from inside their homes (a small fraction of those channels are available while outside of the home). Customers will not be able to watch on-demand recorded DVR shows from portable devices, but can program their DVRs from apps or the website.

Discount Internet for the Poor: Charter references the fact its minimum entry-level broadband speed is 60Mbps so that does not bode well for Time Warner Cable’s Everyday Low Priced Internet $14.99 slow-speed Internet plan. Instead Charter will build upon Bright House Networks’ mysterious broadband program for low-income consumers.

Based on Charter’s initial proposal, Stop the Cap! will urge state and federal regulators to require changes of these terms before approving any merger. Among them:

  1. All existing Time Warner Cable and Bright House service areas should be upgraded to meet or exceed the levels of service offered by Time Warner Cable’s Maxx program within 30 months. It is not acceptable to upgrade some customers while others are left with a much more modest upgrade program proposed by Charter;
  2. Charter must commit to Net Neutrality principles without an expiration date;
  3. Regardless of any usage-cap or usage-based pricing plans Charter may introduce after its three-year “no caps” commitment expires, Charter must permanently continue to offer unlimited, flat rate Internet service at a reasonable price as an alternative to usage-priced plans;
  4. Customers must be given the option of opting out of any leased/provided-modem Wi-Fi hotspot plan that offers a wireless connection to outside users without the customer’s consent;
  5. Charter must commit to a more specific Wi-Fi hotspot program that details towns and cities to be serviced and proposed pricing for non-customers;
  6. Charter must allow customers to use their own set-top equipment (eg. Roku, Apple TV, etc.) to receive cable television service without compulsory equipment/rental fees. The company must also commit to offering discount alternatives such as DTAs for secondary televisions and provide an option for income-challenged customers compelled to accept new equipment to continue receiving cable television service;
  7. Charter must retain Time Warner Cable’s Everyday Low Priced $14.99 Internet plan regardless of any other low-income discount program it offers. If it chooses to adopt Bright House’s program, it must broaden it to accept applications year-round, simplify the application process and eliminate any waiting periods;
  8. Charter must commit to independent verification of customer quality and service standards and adhere to any regulatory guidelines imposed by state or federal regulators as a condition of approval.
  9. Charter must commit to expansion of its cable network into a reasonable number of adjacent, unserved areas by committing a significant percentage (to be determined) of measurable financial benefits of the merger to the company or its executives towards this effort.

Stop the Cap! will closely monitor the proceedings and intends to participate on both the state (New York) and federal level to guarantee any merger provides consumers with an equitable share of the benefits. We will also be examining the impact of the merger on existing Time Warner Cable and Bright House employees and will promote merger conditions that protect jobs and limit outsourcing, especially overseas.

Some Time Warner Cable Customers Get a Small Speed Boost Thanks to Overprovisioning

Phillip Dampier June 29, 2015 Broadband Speed, Consumer News 6 Comments

timewarner twcTime Warner Cable customers in parts of the northeast have noticed their broadband speeds increased slightly over the last several days.

Stop the Cap! reader Howard Goldberg was among those who noticed Time Warner’s broadband performance in upstate New York has improved, at least for upper tiers.

“Over the past 24 hours, Speedtest.net (against the TWC site in Syracuse, and many others) is reporting 60-62Mbps down and 6.0-6.2Mbps up, an increase from 55/5.5Mbps we have had over the past few years,” Goldberg notes. He is subscribed to Time Warner Cable Ultimate, marketed in upstate New York as 50/5Mbps service.

We noticed the same thing late last week here in Rochester as speed test results now consistently top 60Mbps when using a Time Warner Cable-based server. The upstream speed increase was less visible, but still measurable.

Goldberg also reports ping times have dropped from the 18-22ms range to 13-15ms when using the Syracuse, N.Y. test site, which could also point to a more responsive Internet connection overall.

Cable companies occasionally deliver speeds that are actually faster than what they sell, known as overprovisioning, to improve customer satisfaction and boost their performance in the Federal Communications Commission’s ongoing national speed test program, designed to verify if providers are actually providing the speeds they are marketing to customers.

Are Time Warner customers in other areas seeing similar results? Report your findings in the comment section.

Empire Access Expands Fiber to the Home Service Across Western N.Y./Southern Tier

empireA Prattsburgh, N.Y. family-owned company has picked up where Verizon left off and is busily wiring up small communities across western New York and the Southern Tier with fiber to the home service, giving both Verizon and Time Warner Cable some competitive headaches.

Empire Access is concentrating its service in areas where Verizon FiOS will never go and Time Warner Cable maxes out at 50/5Mbps. The company recently launched service in downtown Batavia in Genesee County and will be launching serving in Big Flats later this year.

Empire promises no data caps or usage-based billing and offers 100/20Mbps at introductory prices ranging from between $45-65/mo. Gigabit broadband speed is also available.

Where it has franchise agreements with local communities, Empire also offers cable television packages ranging from $31.45-73.40, with up to 130 channels. The packages are not as comprehensive as those from Time Warner Cable, but customers may not mind losing a dozen or two niche cable channels to save up to $30 a month off what Time Warner charges. Nationwide home phone service is also an option.

Empire relies heavily on two public/non-profit fiber backbone networks to deliver service. The Southern Tier Network comprises a 235-mile long fiber backbone that runs through Steuben, Chemung and Schuyler counties. Further north, Axcess Ontario provides backbone connectivity across its 200+ mile fiber ring around Ontario County.

fiber backboneWith the help of public and non-profit broadband infrastructure, residents in small communities across a region extending from Sayre, Pa., north to Batavia, N.Y., will have another choice besides Verizon or Frontier DSL, Comcast or Time Warner Cable.

Residents in some communities, like Hammondsport and Bath — south of Keuka Lake, love the fact they have a better choice than Time Warner Cable. Empire has reportedly signed up 70 percent of area businesses and has more than a 20% residential market share in both villages after a year doing business in the Finger Lakes communities.

Empire targets compact villages with a relatively affluent populations where no other fiber overbuilder is providing service. It doesn’t follow Google’s “fiberhood” approach where neighborhoods compete to be wired. Instead, it provides service across an entire village and then gradually expands to nearby towns from there.

Most western New York villages are already compact enough to attract the attention of cable companies, predominately Time Warner Cable, which has an effective broadband monopoly. Verizon and Frontier offer limited slowband DSL, but Verizon has stopped expanding the reach of its broadband service and will likely never bring FiOS fiber to the home service to any western N.Y. community outside of a handful of suburbs near Buffalo.

empire-access-truckThe arrival of Empire reminds some of the days when the first cable company arrived to wire their village. Word of mouth is often enough to attract new customers, but a handful of local sales agents are also on hand to handle customer signups. From there, one of the company’s 80+ employees in New York handle everything else.

Bryan Cummings, who shared the story of Empire Access with us, “is pretty stoked.”

“Bye, bye Time Warner Cable,” Cummings tells Stop the Cap!.

Time Warner has treated most of western New York about as well as its service areas in Ohio, often criticized for not keeping up with the times. With fiber overbuilders Empire Access in the Finger Lakes region and Southern Tier and Greenlight Networks in Rochester, the fastest Internet options are not coming from the local phone and cable company anymore.

WSKG in Binghamton explores fiber broadband developments in the Southern Tier of upstate New York. Empire Access is providing the fast fiber broadband Verizon, Frontier, and Time Warner Cable won’t. (3:54)

You must remain on this page to hear the clip, or you can download the clip and listen later.

At present, Empire Access provides service in:

  • Village of Arkport
  • City of Batavia
  • Village of Bath
  • Village of Canisteo
  • Village of Hammondsport
  • City of Hornell
  • Village of Montour Falls
  • Village of Naples
  • Village of North Hornell
  • Village of Watkins Glen
  • Village of Waverly (N.Y.)
  • Boroughs of Sayre, Athens, and South Waverly (Pa.)
  • Borough of Troy (Pa.)

Communities on Empire’s radar for future expansion include Urbana, Dansville, Wayland and Cohocton. Further out, there is some consideration of larger cities like Corning and Elmira, as well as other towns in far northern Pennsylvania. With Empire’s expansion into Naples, the company also has many options in affluent and growing communities in Ontario County, south of Rochester.

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