Cablevision CEO Jim Dolan may have to eat his words when he told shareholders he was done giving promotional discounts to customers bouncing back and forth between competing providers. Now Verizon has given Cablevision customers an excuse to say goodbye to the cable company for at least the next two years.

The Verizon FiOS $79.99 Triple Play promotion is back and includes a $300 Visa rebate card and free activation when ordering from Verizon’s website.

The package includes:

Cablevision will officially boost its broadband speed packages next Monday in a move to stay competitive with Verizon FiOS, which has been highly successful getting people to upgrade to 50/25Mbps service for just $10 more than customers pay for Verizon’s standard tier (15/5Mbps).

Broadband Reports obtained an internal memo outlining the new speeds, confirming the details we had been tipped off about by Cablevision employees last month. Cablevision customers on Long Island tell Stop the Cap! the speed upgrades have already been launched in their area. Customers can find out if they have the upgrade by briefly unplugging their cable modem’s power cord, allowing the modem to reset.

Cablevision speeds are far better than those offered by Time Warner Cable, which serves much of the rest of New York City, especially for uploads. Time Warner tops out at 5Mbps for upstream speeds in the northeast. Customers with older equipment will need a DOCSIS 3 modem to get the Ultra-level speeds.

Legacy Boost/Boost Plus customers will see a massive speed hike to 101/35Mbps at no extra charge if the memo is correct. Newer customers signed up for Boost will be upgraded to 50/25Mbps service. We have yet to confirm whether these upgrades have actually occurred yet.

Moffett

I spend my days listening to Big Telecom company earnings conference calls so you don’t have to. On this morning’s call with Time Warner Cable investors, Sanford Bernstein’s Craig Moffett raised his hand yet again for another round of questioning Time Warner Cable executives for news on when the company will begin gouging their customers with Internet Overcharging schemes like usage-based billing. It is rare when Moffett does not ask Time Warner about when it plans to get the Money Party started with even higher prices for the company’s broadband customers.

Both Rob Marcus (chief operating officer) and Irene Esteves (chief financial officer) do their best to assuage Moffett his dreams of usage pricing may still someday come true (we’ve underlined some important points):

Craig Moffett – Sanford C. Bernstein & Co., LLC., Research Division: Rob or Irene, maybe you could just update us a little bit on your latest thinking with usage-based pricing, what’s been happening in Texas? And with the cable modem fee, which is obviously not a step in usage-based pricing, does that put off anything that you would otherwise do in moving toward usage-based pricing over the next couple of months? How should we think about that?

Robert D. Marcus – president and chief operating officer: So we’re now in Texas, the Carolinas and the Midwest with usage-based pricing. [We’re planning to introduce it] in the Northeast [in] the next month or so. And I think by year-end, we’ll be 100% across the footprint with [usage pricing] available [on] Internet Essentials, as we call it. I think that although the customer uptake of Internet Essentials is still small, it’s a very important principle that we’ve established, one that usage and price relate to one another. And secondly, we think it’s very important that we give customers who use less a choice to pay less. And whether or not there is a significant uptake of the service, we think those are very important principles to have established. So we’re in no way reducing the emphasis on that product because the numbers are still relatively small.

Irene M. Esteves – chief financial officer and executive vice president: And as far as the modem fee, we’re looking at that as part of our overall pricing strategy on [High Speed Internet]. We shouldn’t think about it as separate and apart from what our customers are paying us for the overall service. We think  it makes sense given what the competition is charging.

Some of Comcast’s customer service representatives and their supervisors could care less more than a million east-coast residents remain without power and thousands may no longer have a home.

Priority #1: Where is our equipment? If you can’t find it, you are going to pay for it.

Yes, once again the company that redefines lousy customer service is back to illustrate why their reputation as the 4th Most Hated Company in America is well-earned. The Don’t Care Comcast Customer Service Bears in Kabletown call centers are only too happy to give the desperate in New York, New Jersey, and Pennsylvania a hard time.

Blogger Seth Clifford (via the Consumerist) doesn’t need Comcast’s attitude problem. His parents have already lost one home and are on the verge of losing another.

Comcast’s Shocking Realization: the Clifford family has bigger things to worry about than a set top box:

[My mother] was trying to explain to them that they stood to lose the entire house in an explosion and that the authorities were having trouble even reaching the area to cut the gas to prevent this. She mentioned that she wouldn’t be able to return the cable box and equipment because the storm had basically destroyed the area, and the house was perilously close to being destroyed completely as well.

Comcast’s reply to her?

We’re very sorry, but the price of the equipment will be charged to your account if you’re unable to return it.

That’s right: in the middle of a natural disaster, the worst our area has seen in decades, at a time when my parents have already lost one house and stand to lose the other, as well as everything in it (remember, it’s not a rental so it’s fully furnished and they live there for part of the year – there are family keepsakes, antiques, and the like) – at a time like this, Comcast has essentially told my mom “tough s***”.

She spoke to a supervisor who echoed the same thing. Comcast was very ‘sympathetic to the situation’, but according to policy, the company must assess fees against unreturned equipment, no matter the situation.

Devastation on the coast of New Jersey

This is hardly the first time we’ve seen Big Telecom Companies Behaving Badly when Mother Nature strikes.

After tornadoes devastated parts of Alabama in 2011, one of Charter Cable’s customer service minions told a victim they will wait on the phone while the customer searches the yard for missing cable equipment. Can’t find it? Pay us.

The worst companies just don’t care until someone in the media embarrasses them sufficiently to realize the cost of a cable box isn’t as great as the drubbing they are about to get on the 6 o’clock news.

Once exposed, damage control kicks in. The flower arrangement is on the way and the “we’re sorry” card is in the mail.

Too bad the flowers are not for everyone. For those whose stories never go viral, the response often remains “pay up or we’ll ruin your credit for years.”

Comcast is a long way from its “Comcast Cares” motto:

“It’s a wonderful thing to have people work together for the benefit of others.”

Clifford is disgusted with the realization Comcast only cares about itself:

• Comcast does care. It cares about reclaiming equipment in the face of unspeakable disaster. And about charging fees for equipment that does not get returned, even if there is no physical way within the realm of possibility in which to do it.
• Comcast, does not, in fact, care at all about you. Not even a little. House burned down? F*** you, pay me. House about to explode at any minute? F*** you, pay me.

After the Consumerist shined their flashlight on Comcast’s house of corporate evil, the inevitable apology was on the way:

We have already reached out to apologize for adding to his parents’ difficulties and to ask for his parents’ contact information so we can call to personally apologize and assure them that we are handling the equipment without the need for them to do anything further. Please know we are working with our teams to ensure we handle all customer calls on a case-by-case basis with sensitivity to the devastating effects Hurricane Sandy had on so many of our local communities and residents. Again, we are of course notating his parents account to ensure they are not charged for equipment they can’t return.

Hey Comcast: how about “notating” every customer account in the northeast pummeled by Hurricane Sandy to ensure the flying monkeys customer service reps in the call center don’t abuse anyone else? Comcast’s “case by case basis” is loophole language that could leave customers shelling out hundreds in lost or damaged equipment penalties.

Verizon’s flooded headquarters on West St., lower Manhattan (The Wall Street Journal)

As cleanup efforts continue across New York, New Jersey, and Connecticut, some of America’s largest telecommunications companies are coming under increased scrutiny for being caught flat-footed after Hurricane Sandy roared across the tri-state region, causing damage Verizon’s chief technology officer now admits is worse than 9/11.

As of this morning, Verizon Wireless’ network is reportedly straining, particularly in Manhattan and Brooklyn, where cell service that worked immediately after the storm is now increasingly failing.

Verizon said 94% of its cell sites were operational after the storm, but some local officials in the area believe 94% of Verizon’s wireless network has now failed them when they need it the most.

Many telecom companies, particularly AT&T, are being criticized for excessive secrecy about the ongoing state of their networks post-Sandy. AT&T, which left its customers in the dark about service restoration as late as last night while asking customers to contribute $10 to the American Red Cross, finally mass e-mailed customers a statement devoid of much detail signed by Steve Hodges, president of AT&T’s northeast region.

“Restoring our wireless network is our top priority,” Hodges writes. “The vast majority of our cell sites in the Northeast are online and working. We are working issues in areas that were especially hard-hit, where flooding, power loss, transportation and debris all pose challenges. Our crews are working around the clock to restore network service to areas that were impacted by the storm. We will not stop until we repair all of the damage to our network and restore service back to its full capacity.”

The Federal Communications Commission correctly predicted the situation with mobile phones could get worse before it gets better, as backup power wears down and flooding persists. At a press conference held yesterday, FCC chairman Julius Genachowski revealed at least a quarter of all cell sites in areas damaged by Sandy were not operational. Those numbers were less optimistic that those provided by carriers.

The FCC this week activated the Disaster Information Reporting System, a central reporting point for telecommunications companies to update the agency regarding outages and other service disruptions. The FCC also alerted providers that in emergency circumstances, they can assist companies getting fuel for generators and help locate portable cell tower equipment for companies caught unaware.

AT&T’s belated letter to customers affected by Hurricane Sandy

Some may need the help.

New York State Assemblyman Alec Brook-Krasny and Brooklyn Borough President Marty Markowitz both reported Verizon Wireless’ outages are worsening in Brooklyn and midtown Manhattan.

Brooklyn Borough president Marty Markowitz

The Federal Emergency Management Agency (FEMA) today told Sen. Chuck Schumer the federal agency will reimburse New York for 100 percent of the costs incurred restoring power across the storm areas. But that may not expedite how quickly power returns.

Power restoration is expected to bring most cell towers back online. Worsening service is being attributed to battery backup or generator equipment exhausting on-hand fuel supplies, which usually keeps service up and running for up to three days. That means cell towers without power and unreachable by workers will have begun failing late Wednesday into today.

Damage assessments are further behind in New Jersey, the state that took the worst impact from Hurricane Sandy.

Stop the Cap! obtained some new figures from cell phone companies regarding the state of their networks:

• Verizon: Still holding to 94% operational in storm areas;
• AT&T: Declined to comment except to say “the vast majority” of their network is operational;
• T-Mobile: 80% operational in NYC, 90% operational in Washington, D.C.
• Sprint: 75% operational

[flv width=”384″ height=”228″]http://www.phillipdampier.com/video/WSJ Verizon Offices Damaged 11-1-12.mp4[/flv]

Verizon’s critical network takes another hit. “We’ve been here before,” says one Verizon executive, referring to the destruction from the 9/11 terrorist attacks which severely damaged the same facility on West Street now flooded out. (3 minutes)

Our readers report that cell service becomes spotty to non-existent in coastal New Jersey and Connecticut. In Manhattan anywhere south of 29th Street, readers report almost no signals at all.

Verizon’s damaged facilities include those on West and Broad Streets in Manhattan (circled).

Residents are trading tips about “magic spots” where cell service does suddenly pop up, and Gizmodo notes the only place in Alphabet City (the east side in southern Manhattan) to get service is on literally one street corner, where crowds congregate to make and receive calls.

The other salve for telecom withdrawal is the nearest pay phone.

Amusing stories of 20-somethings waiting in long lines only to be confounded by unfamiliar pay phones are appearing in the New York media. One radio station even aired basic instructions for members of the Millennial Generation that have never heard of inserting coins into telephones.

The biggest challenge for the city’s pay phone vendors is clearing them of coin overloads, something unheard of before the storm.

The often maligned pay phone has exposed the limits of the “more advanced” and expensive networks that were supposed to replace them. Despite claims of superiority for wireless service, northeast residents have once again discovered it has its limits:

• They don’t work during major weather events that knock out power and limit access to maintain backup generators;
• Cell networks are less capable of handling large call volumes, a problem made worse when cell phone refugees in other areas seek out remaining cell signals, further congesting the network;
• Wireless is just as susceptible to wireline or fiber failures on the ground. Cell towers typically connect to providers through wired backhaul circuits, which knock out cell service if they fail;
• Cell phone users need power to recharge their power-hungry smartphones. Batteries drain even faster searching for a weak or non-existent cell signal;

Hardest hit remains Verizon, which allowed reporters access inside damaged facilities to help New Yorkers better understand the scope of the problem.

[flv width=”384″ height=”228″]http://www.phillipdampier.com/video/WSJ Wireless Network Outages 11-1-12.mp4[/flv]

The Wall Street Journal takes a look at the state of the wireless communications networks across the northeastern U.S. and when service will be back.  (4 minutes)

Eleven years after the 9/11 terrorist attacks that took out Verizon’s West Street office when buildings collapsed at the nearby World Trade Center, Verizon is likely going to have to re-learn some lessons about catastrophe management as flood waters recede.

Verizon has deployed this 53-foot Emergency Mobile Communications Center for use by the Nassau County Office of Emergency Management that provides Internet and phone service.

The Wall Street Journal was able to obtain access inside the damaged facilities, and the reporter covering the event was left somewhat stunned by the scope of the damage.

In the middle of organized, yet chaotic recovery efforts was Verizon’s chief technology officer Tony Melone who had seen enough to declare the damage worse than 9/11.

The pictures of several feet of muddy water from the nearby Hudson River covering the lobby of the company’s headquarters on West Street said it all. The mostly salt water was an unwelcome guest in Verizon’s building, especially considering the five level basement below the lobby contains critical cables and telecommunications equipment. Almost four of those basement floors were completely flooded. After the water was pumped out, dampness and leaves from nearby trees remain littered on the floor.

One lesson learned after 9/11 was not to place critical phone switches below ground level. After reconstruction, the switches were moved to a higher floor and consequently were left undamaged. But while Verizon moved its backup generators upstairs, it left the pumps and fuel tanks that power them in the basement — leaving them inoperable.

This morning, passersby on West Street have to step around Verizon’s network of generators now running outside of the building, right next to large temporary fuel tanks to power them.

Verizon central offices in other parts of Manhattan, particularly further southeast on Broad Street, were never upgraded and are in worse shape, with electrical equipment damaged perhaps beyond repair. The force of the water was strong enough to bend the 86 year-old steel and bronze doors. Workers there are still trying to get water out of the building, shoving a pipe down an elevator shaft to facilitate pumping.

Verizon has some redundancy built into its network to protect its most valuable customers. That kept the landline phones working at the New York Stock Exchange, even though other landline and wireless customers will have  to wait longer for service to resume.

AT&T’s generator staging area near Meriden, Connecticut. (Credit: Brian Pernicone)

Some critics of the increasingly concentrated telecommunications landscape think Verizon and other companies have still not learned enough to prevent the kinds of service disruptions that will leave some customers without service for weeks.

It is hard to miss the bustle outside of Verizon’s offices damaged by the storm, watching flood water drain down the street. But things are murkier at cell phone providers who have been less than forthcoming about specific outage information and service restoration assessments.

Some have advocated the federal government step in and require cell phone service, now deemed essential by an increasing number of Americans, be protected with robust backup solutions to keep service up and running after catastrophic weather events.

After Hurricane Katrina, the FCC in 2007 tried to issue new rules that required a minimum of eight hours of backup power for all cell sites. The industry balked, predicting it would lead to “staggering and irreparable harm” for the cell companies. One wireless trade association warned their members might take several cell sites down if they were forced to provide backup power.

The CTIA Wireless Association and Sprint-Nextel sued the agency in federal court and the Bush Administration’s Office of Management and Budget eventually killed the proposed regulations.

T-Mobile and AT&T have cut an emergency deal to share their cellphone networks in areas affected by Superstorm Sandy. They’re trying to make it a little easier for customers to get a signal as carriers restore their networks. Some say companies should be forced to make their networks more resilient. National Public Radio’s Morning Edition has the story. (November 1, 2012) (3 minutes)
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