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Comcast Announces Speed Boosts for Customers (Without a Merger)

Comcast-LogoComcast has boosted Internet speeds for some of its broadband customers in the northeast.

Xfinity Internet Blast now offers 105Mbps, up from 50Mbps and Xfinity Extreme 105 has been increased to 150Mbps, up from 105Mbps.

The upgrade is free and applies in 14 northeastern states between Maine and Virginia and the District of Columbia. Customers may have to reboot their cable modems to connect with the faster speeds.

Comcast claims a merger with Time Warner Cable will benefit everyone with faster Internet speeds, but the company has increased broadband speeds — especially for premium tier customers — almost annually without the benefit of a merger.

Northeastern Comcast customers have yet to experience the company’s growing reintroduction of usage allowances on its broadband service, now set at 300GB a month in several mostly southern markets.

Google Fiber Proposes Major Expansion, But Continues to Ignore the Northeast/Mid-Atlantic

Google has proposed expanding its gigabit fiber network to nine metropolitan areas around the United States, but none of them include cities in the Mid-Atlantic and Northeast dominated by Time Warner Cable, Comcast, and Verizon FiOS.

google fiber

Altogether, the expansion project could bring fiber to the home Internet service to 34 new cities:

  • Arizona: Phoenix, Scottsdale, Tempe
  • California: San Jose, Santa Clara, Sunnyvale, Mountain View, Palo Alto
  • Georgia: Atlanta, Avondale Estates, Brookhaven, College Park, Decatur, East Point, Hapeville, Sandy Springs, Smyrna
  • North Carolina: Charlotte, Carrboro, Cary, Chapel Hill, Durham, Garner, Morrisville, Raleigh
  • Oregon: Portland, Beaverton, Hillsboro, Gresham, Lake Oswego, Tigard
  • Tennessee: Nashville-Davidson
  • Texas: San Antonio
  • Utah: Salt Lake City

Google’s Fiber Blog:

google fiberNow that we’ve learned a lot from our Google Fiber projects in Kansas City, Austin and Provo, we want to help build more ultra-fast networks. So we’ve invited cities in nine metro areas around the U.S.—34 cities altogether—to work with us to explore what it would take to bring them Google Fiber.

We aim to provide updates by the end of the year about which cities will be getting Google Fiber. Between now and then, we’ll work closely with each city’s leaders on a joint planning process that will not only map out a Google Fiber network in detail, but also assess what unique local challenges we might face. These are such big jobs that advance planning goes a long way toward helping us stick to schedules and minimize disruption for residents.

We’re going to work on a detailed study of local factors that could affect construction, like topography (e.g., hills, flood zones), housing density and the condition of local infrastructure. Meanwhile, cities will complete a checklist of items that will help them get ready for a project of this scale and speed. For example, they’ll provide us with maps of existing conduit, water, gas and electricity lines so that we can plan where to place fiber. They’ll also help us find ways to access existing infrastructure—like utility poles—so we don’t unnecessarily dig up streets or have to put up a new pole next to an existing one.

While we do want to bring Fiber to every one of these cities, it might not work out for everyone. But cities who go through this process with us will be more prepared for us or any provider who wants to build a fiber network. In fact, we want to give everyone a boost in their thinking about how to bring fiber to their communities; we plan to share what we learn in these 34 cities, and in the meantime you can check out some tips in a recent guest post on the Google Fiber blog by industry expert Joanne Hovis. Stay tuned for updates, and we hope this news inspires more communities across America to take steps to get to a gig.

Google does not guarantee every community will actually get the service, and a read between the lines makes it clear that a close working relationship between Google and city officials and utilities will be essential for projects to move forward. Bureaucratic red tape could be a fiber-killer in some of these communities, as could an intransigent utility fighting to keep Google fiber off utility-owned poles.

Google continues to completely ignore the northeastern United States for fiber expansion. Analysts suggest Google will not enter areas where fiber broadband service already exists, and this region of the country is home to the largest deployment of Verizon’s FiOS. Despite the fact Verizon has canceled further expansion, and large sections of the region have little chance of seeing a fiber upgrade anytime soon, Google seems more interested in serving the middle of the country and fast growing areas including North Carolina, Georgia, Phoenix and Texas. Its choice of San Jose obviously reflects the presence of Silicon Valley.

Time Warner Cable Hiking Rates for Earthlink and Time Warner Cable Customers

Phillip Dampier February 18, 2014 Consumer News, Earthlink 3 Comments

timewarner twcEarthlink and Time Warner Cable are two independent companies, but you would never know it from Time Warner Cable’s mailed notification of rate increases that will apply to customers of both. In addition to general rate increases, Time Warner is now imposing its $5.99 monthly modem rental charge on Earthlink customers that used to avoid the modem fee.

The cable company has also seen fit to add a considerably higher monthly fee for “The Guide” — which refers to the on-screen guide offered through your set-top box. Love it or hate it, it will now cost you an extra $3.27 per month per cable outlet.

Your Time Warner Cable basic television package now called “Preferred TV” will now cost about $2.50 more per month, ranging from around $79 in Maine to $82.50 in Buffalo.

Other increases:

  • All cable TV customers should expect to see a new Broadcast TV Fee surcharge applied to their bills after the rate increase takes effect. In the northeast, it runs $2.25 a month;
  • Time Warner’s Variety Pass, which includes semi-premium movie channels is increasing to $10 a month in many markets. That is up around $1;
  • Your primary set-top box rental fee will increase from $8.99 a month to $10.25 a month. Each additional box will increase from $8.49 to as much as $10.25 a month, depending on the market;
  • Your broadband price may also be increasing. Lite Internet will be $37.99 a month, Basic $47.99, Standard $57.99, Turbo $67.99, Extreme $77.99, Ultimate 50 $88.99;
  • Earthlink customers will now pay $37.99 for Earthlink Lite and $57.99 for Earthlink Standard. Earthlink’s turbo upgrade costs an extra $10 and TWC’s $5.99 monthly modem rental fee will now apply unless you buy your own modem;
  • Customers with extra cable outlets installed after the new rates take effect will now owe an extra service fee of $1.50 per month per outlet.

Customers on promotional packages will not see the new rates applied to their accounts until after their promotions expire. Rate increases are generally rolled out region-by-region over the course of the year. These rate increases will apply to customers in the northeastern United States beginning with the March or April invoice.

Cable’s Newest Triple Play: Time Warner Cable, Charter, and Comcast

[flv]http://www.phillipdampier.com/video/Bloomberg New Triple Play TWC Comcast Charter 1-28-14.flv[/flv]

Bloomberg News reports Time Warner Cable may face a proxy fight to force a sale of the company to Charter Communications. In turn, Comcast will pay Charter billions to take control of Time Warner Cable subscribers in the northeast and North Carolina. Industry analyst Craig Moffett predicts Comcast’s deep pockets may infuse billions in cash to sweeten Charter’s offer. It also means Comcast is not interested in buying all of Time Warner Cable itself. (3:11)

AT&T Sells Landlines in Conn. to Frontier; U-verse TV Available to Frontier Customers Nationwide?

frontierAT&T today announced it was selling off its residential wireline network in Connecticut to Stamford-based Frontier Communications for $2 billion in a deal that includes an expanded license for U-verse TV that could eventually be available to Frontier customers nationwide.

Frontier will assume control of the Southern New England Telephone Co. (SNET), a wholly owned subsidiary of AT&T, and its 2,700 employees and 900,000 telephone lines. Included in the deal is AT&T’s U-verse network in the state and the right to expand U-verse TV into all 27 states where Frontier provides service. The deal comes three years after Frontier paid $8.6 billion in stock and cash to buy landline operations in 14 states from Verizon Communications.

In a Stop the Cap! exclusive story published last year, we reported Frontier was interested in acquiring licensing rights to the U-verse brand to potentially offer its customers a unified product suite of television, broadband, and phone service over a fiber to the neighborhood network. Maggie Wilderotter, CEO of Frontier Communications, told the Wall Street Journal the deal between AT&T and Frontier had been on the table for years waiting to be finalized. With today’s announcement, AT&T New England president Patricia Jacobs acknowledged Frontier will use the U-verse name at a secondary brand for video service. Frontier now relies on satellite reseller agreements to bundle video service into its packages for consumers.

frontier u-verseFrontier’s acquisition will give the company hands-on experience with AT&T’s U-verse network in Connecticut and offer a path to bring improved service to Frontier customers elsewhere. Company officials also acknowledged a key reason for the transaction was boosting Frontier’s lagging dividend, a critical part of its share price. By taking on nearly 1,000,000 new customers, Frontier will boost its cash flow, returning some of that new revenue in a higher dividend payout to shareholders. But the company will take on an extra $2 billion in debt to manage higher dividend payouts.

JPMorgan Chase & Co. arranged the financing for the acquisition and Frontier will likely raise about $1.9 billion from debt markets by selling bonds. Frontier already has $8.13 billion in debt on the books, much of it acquiring landlines originally owned by Verizon.

AT&T’s departure from Connecticut was no surprise to analysts. AT&T operates most of its landline network in the midwest, south, and in the state of California. The company has focused primarily on serving business customers and its wireless network in the northeast, not residential landlines. Frontier described the deal as a perfect fit for Connecticut residents, because Frontier specializes in residential phone and broadband service.

“AT&T has been trying to sell its rural wireline businesses for some time,” Gerard Hallaren, an analyst with Janco Partners Inc., told Bloomberg News. “It looks to me like Frontier cherry-picked a nice asset at a nice price from AT&T.”

att_logoSNET began operations in 1878 as the District Telephone Company of New Haven and pre-dated the Bell System. The company founded the first exchange and printed the world’s first telephone directory. It remained independent of Bell System ownership until 1998, when SBC Communications (formerly Southwestern Bell) acquired the company. In late 2005, SBC purchased AT&T and AT&T Connecticut was born.

Over the past seven years, AT&T has watched customers decline from more than two million customers to fewer than one million. AT&T introduced U-verse to improve its position in the market to mixed results. The company’s investments in fiber upgrades have not been as profitable as its wireless network, likely leading to today’s sale.

AT&T says it is not leaving Connecticut altogether. The company plans to keep business and wireless customers in the state.

Much of the proceeds from the deal will be invested by AT&T in its wireless network, mostly to help pay for 4G LTE upgrades. The rest will be spent bringing U-verse to more customers in the midwest and southern U.S.

The acquisition faces regulator approval from both the Federal Communications Commission and Department of Justice, likely to be forthcoming in the first half of 2014.

Frontier executives promised shareholders the deal will result in $125 million in cost savings over the next three years — code language for layoffs. Some of them are likely to be among the 2,400 workers represented by the Communications Workers of America, which has had a contentious relationship with AT&T Connecticut over job cuts in the past.

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