No significant expansion for FiOS in 2011, say company officials.

A Verizon spokesman has confirmed Verizon will not be expanding its FiOS fiber to the home service into new areas in 2011, except in those communities where the company already signed franchise agreements.

It’s the second year of Verizon’s hold on fiber expansion, instituted because of objections by Wall Street, a difficult economy, and a less optimistic view by Verizon’s new management that fiber has the capacity to quickly return on investment.

For upstate New York, the end-effect of Verizon’s decision is an odd patchwork of partially-built FiOS-capable communities, mostly in suburbs amenable to Verizon’s franchise terms. Some suburbs have access to FiOS broadband and phone service, but not television.  Others have access to all three services, while many other areas have nothing but Verizon’s ordinary copper phone lines.

“If you are big on fiber, there are some outlying towns with real estate agents that list whether or not their properties have Verizon FiOS, and whether that includes television service,” says Lysander, N.Y. resident Jeff, who reads Stop the Cap! “Our town was just glad Verizon picked us for upgrades and we didn’t ask too much of the phone company, quickly agreeing to a TV franchise agreement.”

But residents in the city of Syracuse are less happy — they won’t get competitive video from Verizon and are stuck with a Time Warner Cable wired monopoly because the city “dragged its feet” on franchise negotiations.

“When it comes to bigger cities, they see Verizon’s knock on the door as an opportunity to cash in on freebies from the phone company, like upgrading their video studios for government access channels, paying substantial franchise fees, and agreeing to carry channels the city government wants on Verizon’s cable system,” Jeff says.  “When the first cable systems came to town, it was the same story; some communities dragged their feet for years trying to extract more.”

Of course, cities don’t have to wait for Verizon to take care of their growing broadband needs.  They can build their own fiber networks and deliver world class service themselves, or open the new networks up to private competitors to deliver bigger bang for your broadband buck.

[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/WSYR Syracuse FiOS availability not planned for Syracuse during 2011 1-6-11.flv[/flv]

WSYR-TV in Syracuse reports it will be a long wait for many in central New York waiting for fiber to the home television service. (Warning: Loud Volume) (1 minute)

Ontario County, N.Y. has completed its 200-plus mile fiber ring and is now open for business… at least for area businesses that want commercial accounts.

But the county’s Office of Economic Development has no intention of building a 21st century fiber network that consumers can’t use — it wants fiber-to-the-home service for every resident.

The formerly rural Finger Lakes county has become an economic growth spot in western New York, with urban sprawl from nearby Rochester and new high-technology businesses attracted by the area’s relatively low taxes and pro-technology attitude.

The high tech fiber ring is the most recent example of the county’s growth-oriented philosophy.

Axcess Ontario, a public-benefit corporation established to oversee the project, built the ring well under its $7.5 million budget.  In the end, the whole project ended up costing just $5.5 million.

The project benefited from faster than expected contracting work and the installation of a natural gas pipeline, through which some of the county’s fiber travels.  Much of the rest is attached to utility poles that stretch across the county’s rural farmlands and small cities, towns and villages.

Now complete, the project is capable of delivering ultra-fast service from cities like Geneva and Canandaigua to the wine-growing region of Naples, to the outer ring towns like West Bloomfield, Victor, Manchester, and Phelps.

Ontario County, N.Y.

“Our mission from the outset was to ensure that every community in Ontario County had access to fiber, no matter how remote that community might be, geographically speaking,” said Geoff Astles, chairman of Axcess Ontario’s board of directors. “We’re proud to say that not only have we accomplished that piece, but we’ve done it under budget.”

The county says the network is open to all-comers, and eight companies are currently using the network themselves or reselling access to commercial businesses that need the capacity fiber brings.  Among them — Verizon Wireless; TW Telecom; Finger Lakes Technologies Group and its sister company, Ontario Telephone Co.; WavHost; Clarity Connect; OneStream Networks; Layer 8; and Integrated Systems.

But nothing prevents a residential service provider from hopping on board, if they’re interested in providing wiring from the fiber ring to individual homes.

“We’re working with several service providers who now have plans to bring fiber to each individual residence,” Michael Manikowski of Ontario County’s Office of Economic Development says. “That’s a little bit down the road. It’s a fairly complicated technical thing that we have to attract other partners to come to the county to help us.”

“The concept of ‘fiber to the home’ is the ultimate game-changer,” said Axcess Ontario CEO Ed Hemminger. “Once residents have fiber to the home, everything changes. Someone who wants to work from home or start a home-based business can do so with ease. Not only will they have instant access to the online global marketplace, but they’ll also have confidence that their home-based Internet connection will be as fast, as reliable and as competitively priced as any office-based system. Imagine conducting videoconferences on your iPad with business partners halfway across the world, all from your living room or your back deck.”

“This project is going to make a difference in the lives of residents and business-owners for the next 25 years,” he said.

Among those reportedly interested: Frontier Communications, which runs limited fiber to some of the county’s new housing developments, but currently does not leverage that technology to deliver broadband faster than traditional DSL accounts the company sells elsewhere in the region.  Time Warner Cable also covers the more populated areas of county through its Rochester/Finger Lakes division.

Individual communities inside the county could also decide to build their own community fiber service for residents, if they are willing to wire individual homes.

Residential fiber service has rarely attracted commercial service providers, convinced the technology is overkill for most consumers.  Some also balk at the capital costs, which are considerably higher than existing copper phone wire or running coaxial cable to homes for traditional cable service.  But many communities suffering from very low speed DSL service and not well served by cable-TV find doing it themselves can deliver service that commercial companies may never provide.  Without the immediate need for quick returns on investment, towns and villages clamoring for faster broadband can finally have it, without the expense of building and running their own fiber ring.

Axcess Ontario threatens to deliver service better and faster than what is on offer further north in much larger Monroe County, which includes Rochester.  That’s because Ontario County’s advanced fiber network could ultimately scrap Frontier’s obsolete copper wire landlines and call out the incremental, slow upgrades from Time Warner Cable.

The Ontario County fiber ring is a nationally recognized broadband model. Harvard University’s Ash Center for Democratic Governance and Innovation at the John F. Kennedy School of Government this fall recognized the fiber ring as a “Bright Idea” — a promising, innovative solution that can assist other communities as they face their own challenges. And earlier this year, county officials met with the Federal Communications Commission in Washington, D.C., to educate FCC officials about the fiber ring and how it can be implemented elsewhere in the country.

[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/WHAM Fiber Ring in Ontario County 12-29-10.flv[/flv]

WHAM-TV in Rochester reports Ontario County’s new community-owned fiber ring could eventually deliver fiber to the home service to every resident in the county.  (2 minutes)

Time Warner Cable has begun notifying western New York cable subscribers their rates are going up, effective in about three weeks.

The cable company includes the notification in customer bills arriving throughout December and early January in the Rochester and Finger Lakes region of upstate New York.

The new prices are the result of higher programming costs, the development of new innovative features, and continued investment in our infrastructure and investment.

Rates for Road Runner, Time Warner’s broadband service, are increasing as much as five dollars per month.  This represents the third increase in broadband rates for Time Warner customers in the last 13 months, and should finally bury any notion the cable operator needs to implement Internet Overcharging schemes to recoup usage costs.  Time Warner Cable’s Road Runner Turbo package was priced at just under $50 a month two years ago.  Today, the same service costs $64.90 per month for standalone customers — a $14.90 increase.

2011 Pricing: Turbo - up to $64.90, Standard - up to $54.95, Basic - up to $37.95, Lite - $25.99

Customers on bundled service packages will see rate increases of around $5 for a digital cable-only package, $7 for a cable-broadband package, $6 for a cable-phone package, and $9 for “All the Best” which delivers cable, phone, and Internet service.  Those with multiple televisions will see a doubling of rates for each additional TV hooked up to digital cable (was $0.50, now $1.00), a $0.16 decrease in the monthly rental cost of a traditional cable box, and a $0.04 increase in the cost for the remote control.

A rate increase for the Rochester, N.Y. area

Existing and new customers might find a year of savings with the company’s current Triple Play $99 promotional offer, which some report to be good for existing subscribers adding additional services.  For one year, subscribers will pay $33.33 each for broadband, video, and phone service (you must take all three).  For a subscriber with cable and broadband, adding the phone service actually will cost you nearly $20 less per month, even if you never bothered to use it:

Choose the speed that's right for you at the price that's not.

2011 Rates

• Watch N Surf: $118.99 per month
• Triple Play Promotion: $99 per month

Customers are reminded Time Warner’s retention agents are authorized to provide discounts and better offers to those threatening to take their business elsewhere.  If your rates are increasing, it might be a good time to threaten to walk and see what kind of offers the cable company provides to get you to stay.

Share your views and retention offers in our Comment section.

It's a three hour drive down Interstate 81 from Utica to Wilkes-Barre.

WKTV-TV Utica is off Time Warner Cable's lineup in parts of central New York this morning.

Viewers across Oneida, Herkimer, and other adjacent central New York counties lost their local NBC station early this morning after another retransmission consent dispute led Time Warner Cable to drop WKTV-TV in Utica, N.Y., from the lineup.

The fact Time Warner dropped a station is hardly unprecedented, but the cable company managed to replace the station almost immediately.  Away went WKTV, in came Nexstar-owned WBRE-TV, an NBC station serving Wilkes-Barre/Scranton, Penn.

This morning, Mohawk Valley viewers woke up to watching local news and weather for the Susquehanna Valley — 187 miles away to the south.

While Time Warner’s apparent agreement with WBRE keeps NBC shows rolling, the loss of local news and weather represents a major blow for area subscribers, many enduring a western and central New York winter that has brought more than 50 inches of snow in just the last two weeks in some areas.

Utica city officials expressed concern about the loss of the local Utica station because important snow emergency alerts were often delivered over the station.

“They might as well have imported a station from Florida, because there is very little in common between Herkimer County, New York and Luzerne County, Pennsylvania,” writes Steve, who lives in Herkimer.  “You would have thought they would have just grabbed an NBC station from Syracuse.”

...replaced with WBRE-TV, a station in Wilkes-Barre, Penn.

Apparently, Time Warner has permission from Nexstar to import the distant signal of the Pennsylvania station for impacted subscribers.  The effective reinstatement of network programming may make it more difficult for WKTV’s owner, Smith Media, to negotiate the station’s return to Time Warner’s lineup anytime soon.  That one NBC affiliate may have granted permission to replace another station during a contract dispute may become a point of contention on the network level.  Traditionally, broadcasters have not been quick to undercut other stations with such carriage agreements.

Smith’s other stations were also affected.  Time Warner dropped WFFF (Fox) AND WVNY (ABC), which serve the Burlington, Vt. market and the CW-affiliated digital sub-channel running alongside WKTV in Utica.  The station owner launched a website to share their position and educate people about how to receive the signals either over-the-air or via satellite.

In nearby Rochester, Time Warner continues to play hardball with Sinclair Broadcasting over a carriage agreement renewal for WUHF-TV.  But Time Warner customers facing the loss of the Fox affiliate will not see any interruption of Fox network programming — the cable company has a separate agreement with the network.  Ironically, Sinclair jointly operates WUHF with Nexstar Broadcasting of Rochester LLC, the owner of WROC-TV, the city’s CBS affiliate.

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/WKTV Carriage Dispute 12-16-10.flv[/flv]

Time Warner’s replacement of WKTV-TV in Utica with a distant station may be a new tactic in the hardball war over cable-broadcaster carriage agreements.  WKTV ran several stories about how the station’s loss impacts the area.  YNN’s Central NY news station, run by Time Warner Cable, also ran its own story this morning, all of which are covered here.  (9 minutes)

Last year's glossy mailer gave fair warning what subscribers could expect in 2010 were rate increases.

Time Warner Cable customers in several areas of the country are now receiving good tidings in their mailbox — the annual glossy mailer that portends the company’s annual “rate adjustments.”

Customers in areas from snowed-in western New York to fogged-in Los Angeles will find the company quick to congratulate themselves on their “achievements” in 2010 — achievements that someone has to pay for — you.

After you’ve finished reading all of the self-back-patting accolades, somewhere towards the bottom of the piece the company tries to break the bad news, telling you it must periodically “adjust prices.”  We know what that means and so do you.

The company’s new rate schedule for 2011 delivers price increases across the board, but the exact amounts and percentages depend on where you live.  For customers in western New York, expect around a 6 percent rate hike.  In southern California, rates for just about everything are increasing, some by a percentage considered high even for the cable industry.  The more services you bundle with the cable company, the less the total increase will bite your wallet.

Considering America’s inflation rate stands at less than 1 percent and will remain at that level through next year, a rate increase six times that amount is certain to start another round of package trimming and cord cutting from strapped subscribers.

“Everytime they increase their rates, I drop something to keep my bill manageable,” writes our reader David in Charlotte, N.C.  Rate increases in that state were announced in November.

“When I’m down to just standard cable and Internet, I’ll look to drop them,” he adds.

David says he used to have a fully-loaded package from Time Warner, taking every premium channel, Digital Phone, and Road Runner Turbo.  But not anymore.

“When they raised rates three years ago, we dropped several premium channels,” David said. “Two years ago we dropped the rest and some of their HD programming, and last year we chucked Digital Phone for our cell phone.”

What is going in 2011?  Road Runner Turbo.

“It’s a pointless product ever since they raised upload speeds for standard Road Runner customers.”

For customers in Rochester, the latest rate hike is the latest of several over the past year.  The company has been incrementally increasing prices on individual components of the cable package in an effort to drive more customers into bundled service packages.

In Los Angeles, it’s much the same.  Rate increases are on the way for DVR service and for set top boxes.  So are dramatic price hikes for virtually anything requiring an employee to come to your home. Want them to pick up or exchange equipment?  Pony up $29.99 (up 50 percent).  Need someone to install your phone or Internet?  That’s going up 65 percent to $32.99.

The company’s response to these increases?

The usual — programming cost increases.  The company also encourages customers to do installations themselves and drop off equipment at a local cable store to avoid the charges.

Columnists are using the occasion to scream once again for a-la-carte cable — allowing customers to pick and pay for only the channels they want to receive, always a Dead-on-Arrival idea for cable companies.

Tom Joyce from the Mount Airy News noticed as rates increase, the channels he wants to see either aren’t on the system, are being dropped, or are at risk of being dropped because of contract disputes:

What really irks cable television subscribers is that not only are we paying more, we are getting less for our money as well. It would be one thing to simply charge subscribers more for the same service, but what Time Warner seems to be doing is hiking prices while also diminishing the quality of its programming.

For example, C-SPAN2 recently was dropped from the system. C-SPAN2 is a great outlet for public-affairs programming and also focuses on books written on government, history and similar topics.

While some TV watchers might say good riddance to such a high-brow channel, I think it’s a shame viewers now have one less outlet that might actually broaden their intellectual horizons or help them become better-informed citizens.

Yet Time Warner’s cuts also could affect mainstream broadcast content as well. There have been announcements that Channel 48, a Triad TV station, is being dropped from the local cable system at the end of this month. I rely on Channel 48 for many entertainment shows, including late-night reruns of “The Office.” This trend isn’t new. It’s been occurring over the years, paralleling a scenario of constant price increases.

The cable package I receive once included the Fox Movie Channel, Encore Westerns and others that I found enjoyable, but which gradually fell by the wayside. Only one bona fide movie selection remains, Turner Classic Movies.

Channels that I now receive basically are a collection of commercial-laden garbage and cheap filler.

David Lazarus at the LA Times agrees:

“I’ve said it before and I’ll say it again: Cable and satellite bills are too high, and it’s nuts that people have to pay through the nose for channels they never watch,” Lazarus writes. “It’s time for cable and satellite companies to switch to a la carte programming so we can start paying for products we actually want, rather than ones that we’re forced to accept.”

Lazarus also noticed Time Warner Cable’s efforts to placate subscribers with freebies backfired again this year as well:

As it did last year, Time Warner is again trying to make its annual rate hike more palatable by giving customers coupons to watch premium movies for just 99 cents.

The catch is that you have to mail in the coupon with your bill to have it redeemed. Or you can mail it separately if you want to add 44 cents in postage to your 99-cent movie.

But what about all those customers who have gone paperless — as Time Warner prefers — with automatic bill payments or electronic cash transfers? Isn’t this unfair to them?

When I suggested last year that maybe the cable giant should include a digital code on its coupons so that customers could redeem them online, a company spokeswoman said this was a good idea and she’d take it up with her superiors.

I suggested the same this year to Gordon. He said it was a good idea and he’d take it up with his superiors.