Do they honestly think we’re that stupid?

The sudden announcement by the cable monopoly known as Time Warner to not cancel–but postpone its Road Runner internet metering/pricing scheme–is not a victory by any means. If anything, this company ought to be downright ashamed at insulting the intelligence of its Piedmont Triad customer base.

The Triad area of central North Carolina stretches into a 12-county area engulfing mid-size metros of Greensboro, High Point and Winston-Salem, about an hour from Charlotte and Raleigh, respectively. And while this area is not a tech-heavy base, Time Warner, unfortunately, has a cable monopoly here. AT&T and Clearwire are other providers of Internet service, but are not as big players here as Time Warner.

And while we’re an area that’s been in major transition even before the recession started (with a dwindling economic base, double-digit unemployment and a huge brain-drain), for this company to pull the stunt it attempted to pull off was laughable.

Its customer base was furious, and the outrage it caused in this area was enormous.

But company officials still believes tiered pricing is the best option for customers:

Time Warner Cable Chief Executive Officer Glenn Britt said, “It is clear from the public response over the last two weeks that there is a great deal of misunderstanding about our plans to roll out additional tests on consumption based billing. As a result, we will not proceed with implementation of additional tests until further consultation with our customers and other interested parties, ensuring that community needs are being met. While we continue to believe that consumption based billing may be the best pricing plan for consumers, we want to do everything we can to inform our customers of our plans and have the benefit of their views as part of our testing process.”

The (Greensboro) News-Record quoted Time Warner spokeswoman Melissa Buscher:

“It’s clear from the response we’ve gotten from Greensboro and other areas that there’s a lot of misinformation out there,” Buscher said. “What we heard is no one knows what their usage is.”

To solve that issue, Time Warner is developing ways to help explain the fee structure and educate customers on their usage. Buscher said the company is working on a Web site that customers could go to that would monitor their Internet usage, similar to some utility company sites.

Do you think your Triad customer base is that “backwoods” and uneducated, Melissa? Are we that stupid?

For a company that just announced big losses and layoffs in its core cable television business not long ago, one would think that perception, customer service and respect would be a priority. Sadly, that didn’t happen. And as a commenter said, it was Time Warner that was just educated by its customer base — now a dwindling customer base.

It is also saying a lot when it takes a U.S. Senator from NEW YORK to open his mouth for something to get done in North Carolina. The leadership (and response) in North Carolina to this issue was horribly pathetic; the response among our local representatives was equally paltry.

And for this company to say it will postpone its plans tells us that they plan to roll it out once again, eventually. What few customers this company has left by that time will be ready…to bolt. My household is already looking at what few options there are to shelve (using their words) Time Warner in favor of another provider.

What’s needed? Competition. Plain and simple. Our customer base is not stupid, but this issue squarely points out that our local leadership needs to get wise and get techno-savvy very quickly.

Erik Huey is a local community activist, a local public education and local media analyst and a communications/political strategist residing in south Greensboro. Huey is a former journalist for the High Point Enterprise and Las Vegas Review-Journal newspapers, a former reporter for various airline business trade publications in Washington, DC, and a one-time Guilford Co. Board of Education candidate in 2008.  Huey now runs Triad Media Watch, which monitors the media across the Triad.

As I wrote earlier, this entire debate has barely budged in two years.  Wilson wants to run its municipal broadband service, and big cable and telco interests want to kill it if they can.  Two years after similar legislation died in the North Carolina legislature, the lobbyists and some co-opted state legislators are back for another round, trying to stop municipal broadband in its tracks with false statements about where these projects obtain funding.  The Wilson project, for example, was financed from a bond issue, with proceeds from subscription revenue going to repay bondholders.  No taxpayer funds are involved.  But cable lobbyists keep claiming otherwise, and also suggest they are being victimized by local governments.

The truth is, of course, the other way around.  Many smaller communities lack robust competition, and their citizens suffer for it.  System upgrades to bring additional speed at lower prices come to those areas where fierce competition exists.  Those stuck where competition is lacking or lackluster find upgrades slow in coming, if at all.  When a local government cannot convince companies to upgrade, they took it on themselves to get a better system up and running.  That can become a major selling point to attract new businesses, and keep residents on the cutting edge, usually at prices substantially lower than charged by incumbent providers.

Big corporate interests apparently cannot compete with better service and lower prices, so the next best thing is to find a politician willing to do your bidding to kill them off for you.  And as we’ve seen from Save NC Broadband’s reports, many of these legislators are so inept about comprehending the legislation they propose and support, they show their true colors when they simply defer to Time Warner’s own staff for speak for them!

Another great report from WRAL that tells the story.  The “cable guy” is back claiming tax dollars are involved here.  What in the world Rep. Ty Harrell is thinking is beyond me.  Also, can we stop with the metaphor of the TV showing a snowy picture?  We’re about ready to check into a deluxe suite in Hotel Cliché with that.

If you live in North Carolina, get writing. We need a full court press opposing North Carolina Senate Bill 1004 and North Carolina House Bill 1252, immediately!  Protecting the city of Wilson is also going to protect your choice to consider municipal broadband in your community.  A sample letter follows.  Be sure to modify it so that you are writing to the State Senate about SB 1004 and to the State House about HB1252.  Please write one in your own words for maximum effectiveness.  You can find e-mail addresses for your representative at the bottom.  Cut and paste the correct one and send an e-mail today!

April 24, 2009

Dear Senator [insert name] -or- Dear Representative [insert name]:

I am writing you to express my strong opposition to [Senate Bill 1004] -or- [House Bill 1252].  At a time when North Carolina continues to face the perils of a difficult economy, our state must do all that it can to work towards recovery.

As you may know, in 2007 the city of Wilson was confronted with a challenge.  The incumbent cable provider, Time Warner Cable, declined multiple requests by city officials to improve their broadband service for residential and business customers.  City officials decided that with the intransigent position by Time Warner, it had no other choice but to consider building its own municipal broadband system, with state of the art fiber optic technology.

It is unfortunate that most communities in our state have broadband service provided by a virtual duopoly – the cable company and the telephone company.  In markets where competition is less than strong, companies lack the incentive to improve service on an ongoing basis.  This left cities like Wilson confronting the fact they would soon be left in a broadband backwater when compared to Raleigh and other nearby cities.

You may have been told that tax dollars are being used to build this, and other, municipal broadband systems.  The city of Wilson’s system does not rely on one penny of taxpayer dollars.  Time Warner’s claims that this bill would provide a “level playing field” are dubious at best.  What this legislation effectively does is make municipal systems difficult and expensive to propose, untenable to administer, and give unwarranted protection to the existing commercial players.

Few municipalities in healthy, competitive markets, feel the need to build their own systems for the benefit of their communities.  But when competition barely exists, or does not exist at all, it would be devastating to limit a community to essentially “live with what they’ve got,” and this legislation is a one way ticket to that reality.  That means high technology businesses will locate elsewhere, good jobs will not be created, and our future competitiveness will be at serious risk.  Broadband is not just a convenience, it’s an absolute necessity.

Let me be clear.  It’s my opinion that any vote in favor of this legislation represents a vote for big business at the expense of the citizens of North Carolina.  It is an issue of critical importance to me, and others, and I urge you in the strongest possible terms to vote against this bill.

I appreciate your consideration, and look forward to hearing your views at your convenience.

Very truly yours,

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E-Mail Contacts [Find YOUR elected official here – don’t bother writing to those outside of your district]

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[Editor’s Note: My efforts to tell the story of Wilson in an orderly manner are being challenged by fast-moving developments in the state legislature.  So even though you have yet to see the story play itself out here in its entirety, if you live in North Carolina, this is something you need to act on today.  Wilson may not be a part of the Triad, but my friends, municipal broadband may be one way out of the cap mess once and for all, so you need to get involved in the fight.]

HB1252, a bill to severely curtail municipal broadband projects in North Carolina, was moved without prejudice Wednesday to the House Utility Committee for further consideration.

Brian Bowman, who runs the Save NC Broadband website, in addition to his other job — Public Affairs Manager for the city of Wilson, North Carolina, had some interesting observations of just how much involvement Time Warner has in this particular bill:

Several times, members of the committee asked bill sponsors Rep. Ty Harrell (Wake) and Rep. Thom Tillis (Mecklenburg) for clarification. The lawmakers turned to a Time Warner staff member and an attorney who represents the industry to speak on their behalf. You read that right. The sponsors, elected by their communities, had to ask a Time Warner representative to clarify what their own bill said.

Although the debate now moves to a different venue, the need for North Carolina residents to contact their state government representatives remains critical.  A comprehensive contact list is expected shortly at Save NC Broadband’s website.

The sponsors of this anti-consumer legislation are:

NC Rep. Ty Harrell, Ty.Harrell at ncleg.net, 919.733.5602

NC Rep. Earl Jones, Earl.Jones at ncleg.net, 919.733.5825

NC Rep. Marilyn Avila, Marilyn.Avila at ncleg.net, 919.733.5530

NC Rep. Thom Tillis, Thom.Tillis at ncleg.net, 919.733.5828

If any of these people represent you, get on the phones and/or e-mail them your profound disappointment for their anti-consumer position, and let them know you will remember their vote when they come up for re-election.  If your representative isn’t listed here, then you should be watching the Save NC Broadband site for further developments and contact information, and informing your elected officials of your opposition to HB1252.

Let them know this is a transparent effort by corporate interests to kill off municipal networks that are critical to deliver the high tech platform North Carolina needs to succeed in a high tech economy.  Remind them that municipal projects in Wilson do not rely on taxpayer dollars and are designed to be self-sustained by subscription revenue.  Also let them know these networks would not have been needed had the incumbent providers stepped up and provided an advanced level of service.  Because they didn’t, municipally-run networks for the benefit of their citizens are a positive development, and you want to make sure nothing is done to forestall their development.

WETM covers the cap plan being shelved out of concern that it one day would reach the southern tier of New York, where Road Runner has a very substantial market share for broadband service. Congressman Massa hails from the nearby Corning area, as his district extends northwards all the way into Rochester’s southern suburbs.