Advertisements for Road Runner Extreme, Time Warner Cable’s DOCSIS 3 “wideband” service, began running in Rochester, N.Y., this week despite the fact Time Warner Cable has no intention of providing the service in the area anytime soon.

The ad offers Road Runner subscribers the chance to obtain 30/5 Mbps service “for just $20 more per month” and invites viewers to “call now to order.”

So that’s what we did.

Time Warner Cable representatives in Buffalo confirmed the service is not available in Rochester, but figured if they were advertising it here it must be coming soon.  Even they were surprised with the answer they got ‘from upstairs’ when inquiring further.

“No, it’s not coming to Rochester anytime soon,” we were told.

We asked if there was any timetable to bring DOCSIS 3 upgrades to the area.  The response was both illuminating and candid:

“I wouldn’t hold your breath.  We’ve had some issues in the Rochester area and, for now, we feel comfortable offering the service only in the Buffalo area in western New York.”

When we asked why the company was now heavily advertising a product on Rochester TV screens that isn’t available here, we were told Time Warner Cable was increasingly consolidating its operations in western New York through its Buffalo office, which is where “most customer service” and “local advertising you see on cable channels” is now originating.  Since Road Runner Extreme is available in Buffalo, Rochester viewers are accidental witnesses to a service intended for residents of The City of Good Neighbors.

So what are “the issues” in the Rochester area?

Time Warner Cable bypassed Rochester for promised upgrades after the defeat of their proposed Internet Overcharging plan, which would have tripled broadband prices for an equivalent level of service.  Consumer outrage and political headaches combined to kill the experiment.

Meanwhile, Time Warner Cable isn’t compelled to hurry DOCSIS 3 into an area underserved by Frontier Communication’s slow speed DSL service.  Neighboring communities in Buffalo and Syracuse have access to Verizon’s fiber-to-the-home service FiOS, which has driven Time Warner to enhance services in both communities to avoid losing customers.

Despite the slow pace of upgrades, Time Warner Cable previously stated it intended to upgrade a significant number of its cable systems to DOCSIS 3 technology by the end of the year.  So it will eventually reach the area.  As Time Warner Cable recommends… just don’t hold your breath.

[flv width=”490″ height=”380″]http://www.phillipdampier.com/video/Time Warner Cable at the NYS Fair.flv[/flv]

The closest residents of the Flower City will get to Road Runner Extreme is at the New York State Fair in Syracuse, at the Time Warner Cable booth.  (Their advertised ‘celebrity’ is Mike O’Malley.  Who???)  (1 minute)

Another rate increase letter from Time Warner Cable (click to enlarge)

For the second time in a year, Time Warner Cable is jacking up the rates on its Road Runner broadband service for residents in western New York.

Stop the Cap! reader Patrick in Rochester sent word and a screen image of a letter he received notifying him Time Warner Cable was raising the price on standalone Road Runner service to $54.95 a month, effective September 1st.  Patrick, and other customers who are only interested in getting broadband service from the cable company, were paying just under $45 a month for Road Runner standalone service in early 2009.  Today, standalone service runs $49.99 a month, but the cable company is back looking for another $5 a month starting this fall.

July 30, 2010

Dear Road Runner Customer,

We are writing to inform you that effective September 1, 2010, we will be increasing the price of our Road Runner High-Speed Internet product from $49.99 to $54.95 per month for all Road Runner Standard only customers.

If you are currently receiving Road Runner High-Speed Internet products at a discounted rate, your current discounted rate will continue until the term of your promotion is complete.  Your rate will increase to the new retail rate noted above or the effective retail rates at that time.

This rate will also apply as of September 1, 2010 for those customers with two separate Time Warner Cable accounts at the same address.  Please contact us if you’d like to combine these accounts.

Keep in mind there are many packages available allowing you to bundle our video and phone products together with your Road Runner High-Speed Internet for substantial savings….

Time Warner Cable, like many cable providers, wants to discourage customers from taking only one of its products, so it gradually increases prices to drive customers to its “better value” bundled services.  As for broadband, Time Warner Cable executives have made it clear they can raise prices whenever they want.

Landel Hobbs, Chief Operating Officer for Time Warner Cable, told investors this past February consumers love their Road Runner service.

“Consumers like it so much that we have the ability to increase pricing around high-speed data,” Hobbs said.

At $55 a month, standalone Road Runner becomes increasingly difficult to justify for many consumers, but for residents in cities like Rochester, the only alternative is far slower DSL service from Frontier Communications, complete with its 5GB monthly usage allowance.

However, you can leap off the Time Warner Rate Increase Railroad by switching to Earthlink, which is running a promotion for six months of 10Mbps service for $29.95 per month.  Earthlink service is indistinguishable from Road Runner, except Earthlink speeds do not benefit from “Powerboost” — Time Warner Cable’s very temporary speed boost during the start of large file transfers.  Most customers will prefer the boost they receive from keeping the $25 difference in price in their wallets — $150 over the life of the promotion.  At the end of six months, you can hop back to Time Warner Cable’s Road Runner service on a new customer promotion at a significant discount.  No modem exchange is required — the switch to and from Earthlink can be done over the phone.  Billing is done by Time Warner Cable for both services.  Just be aware your Road Runner e-mail account will be closed when you change providers.

You can escape Time Warner Cable's Road Runner rate hike by switching to Earthlink service at a substantial discount.

Greed is still good at Time Warner Cable

Time Warner Cable has tried every excuse in the book to justify their continued interest in Internet Overcharging schemes directed at residential Road Runner customers.  Over a year after Stop the Cap! and its readers helped bury an experiment in overpriced broadband, the notion of doubling or tripling Internet pricing for consumers is still alive and well at the nation’s second largest cable company.

Nate Anderson of Ars Technica explored the thinking of Time Warner Cable’s executives a year later and discovered their desires for overcharging remain as strong as ever, but the excuses they give for wanting to do so have changed.

TWC’s revenues from Internet access have soared in the last few years, surging from $2.7 billion in 2006 to $4.5 billion in 2009. Customer numbers have grown, too, from 7.6 million in 2007 to 8.9 million in 2009.

But this growth doesn’t translate into higher bandwidth costs for the company; in fact, bandwidth costs have dropped. TWC spent $164 million on data contracts in 2007, but only $132 million in 2009.

What about investing in its infrastructure? That’s down too as a percentage of revenue. TWC does spend billions each year building and improving its network ($3.2 billion in 2009), but the raw number alone is meaningless; what matters is relative investment, and it has declined even as subscribers increased and revenues surged. “Total CapEx [capital expenses] as a percentage of revenues for the year [2009] was 18.1 percent versus 20.5 percent in 2008,” said the company a few months ago.

In fact, CapEx has declined for the industry as a whole. As the National Broadband Plan noted, the big ISPs invested $48 billion in their networks in 2008 and $40 billion in 2009. (About half of this money can be chalked up to broadband; the rest of the improvements were done to aid cable or phone service.)

To recap: subscribers up, revenues up, bandwidth costs down, infrastructure costs down. This might seem like a textbook case of “viability”; what were execs like Britt and Hobbs talking about last year when data caps were held up as a necessary safeguard against doom?

Before moving to Time Warner’s Excuse-O-Matic, let’s pause for a moment and reflect on the fact this company has stalled more on Internet upgrades than virtually every other major cable operator.  Even bankrupt Charter Communications has been aggressively pursuing investment in the win-win DOCSIS 3 technology that allows cable operators to sell faster tiers of service -and- reduce congestion in heavy web-surfing neighborhoods.  By effectively “bonding” several cable channels devoted to its broadband service together, the pipeline into even the most hip college neighborhoods can sustain a full-scale assault by Hulu fans streaming high bandwidth video.  Comcast realized this more than two years ago and rolled out its super-fast 50Mbps tier to a dozen cities well over a year ago.  In contrast, Time Warner Cable managed to bring forth its “wideband” offering in just a handful of communities — New York City being the largest, last year.

Internet providers always try to awe an audience with claims about the billions of dollars they invest in improved technology, while forgetting to mention they earn tens of billions in profit on those investments.  The shock and awe of stacks of money piled high on a table is tempered when you see the warehouse holding the rest of the cash standing behind it.

Broadband is becoming the single biggest revenue source for cable operators, passing digital phone and well on the way to passing cable television service.  It’s the cash cow that can be milked forever, especially with the limited number of choices most Americans have to obtain the service.

Back to Nate’s story:

Several months ago, while on a business trip to Manhattan, I entered a nondescript building near the Flatiron building and rode the elevator to the top. Inside was one of TWC’s main New York operations centers, hosting an astonishing array of cable and Internet gear. But the real showpiece was the monitoring room, a darkened room with control hardware, computers, and a wall of TVs showing every cable channel currently running out over TWC’s network.

It looked brand new and obscenely expensive. Engineers slipped in and out in silence. A huge pile of boxes on the floor held a new set of replacement TVs. When I make my career shift from ink-stained wretch to Evil Genius, this is exactly the sort of room I will build in order to plot my world domination.

“It’s not a cheap endeavor to run a network like we do,” said TWC’s tweeting VP of Public Relations, Alex Dudley, when I had spoken to him the week before. Here was an obvious reminder of what he meant.

Time Warner Cable’s version of a command and control center, wall after wall fitted for television sets — the Time Warner Cable Sports Bar — impresses only until you realize the company could have paid for it out of the petty cash box.  It’s obvious nobody was watching those televisions last spring as wide-scale protests erupted in four of the cities Time Warner Cable chose for their experimental pricing project.  If they had, they would have apologized to their customers and buried the idea then and there.

At this point, Mr. Anderson began the useless attempt to debate Mr. Dudley, whose job is to sell the agenda of Time Warner Cable (and obfuscate when necessary).  Why has Time Warner Cable’s senior management held onto its dreams of Internet Overcharging like a pit bill, refusing to let go, Anderson asked.  Because of labor costs, Dudley replied.

As Internet use increases, TWC techs, engineers, and executives need to make adjustments such as DOCSIS upgrades at the cable company headend or “node splits” that divide a shared cable loop in two when bandwidth use hits certain metrics. Paying all of these people costs money, and those costs increase as the network is more heavily used.

Last April, when Time Warner Cable was relying on its tweeters like TWCAlex to spin a tale about how their Internet Overcharging schemes would benefit customers and help pay for DOCSIS 3 upgrades (which ended up bypassing cities like Rochester, N.Y., and went to New York City instead — where no such pricing scheme was tested), Alex’s bosses were just completing a layoff of some 1,250 Time Warner Cable employees.  As Internet use was increasing, Time Warner Cable was decreasing the number of its employees from coast to coast.

If Alex is telling the truth, Time Warner Cable needs an employment fund from 8.9 million customers.  Considering many Time Warner Cable cities raised the price on Road Runner service by $5 a month this year, that’s $240 million dollars a year to get the pot started and I’m only counting four million of those subscribers.  If Time Warner Cable hired back those 1,250 former employees, they could each get $192,000 a year from that kitty.  Implement Internet Overcharging schemes that could triple consumers’ rates for an equivalent level of service and they could earn as much as CEO Glenn Britt and then some.

I’m also uncertain how often Time Warner Cable executives are shimmying up phone poles or clearing out wasp nests inside those green cabinets positioned all over town while performing service upgrades and node splits.  It’s far more likely they are spending their time dreaming up new excuses to raise cable rates.

Please deposit 25 cents for the next megabyte of usage

This latest excuse, while certainly novel, is just another bit of nonsense.

Time Warner Cable actually spent more money last year dealing with HD channel rollouts and upgrading their cable systems to support Switched Digital Video to accommodate them.  The company did not exactly slap limits on how often cable viewers can leave their sets on, nor pitted their average TV viewers against viewing piggies who watched too much.  Maybe the coin slot on top of the cable box can be tried in 2011.

In fact, as broadband equipment continues to become more reliable and scaled to manage growing demand, it’s becoming easier than ever to keep broadband lines humming at the cable company.  That leaves Time Warner in the envious position of enjoying increasing profits on service that increases in price while decreasing in cost.  In fact the only thing growing at a faster pace than the company’s broadband profits is the level of incredulity informed consumers have towards cable companies with long lists of excuses to justify rape and pillage pricing.

No matter what Time Warner Cable executives want you to believe, the FCC noted in its broadband plan that international bandwidth has grown 66 percent each of the last five years, all while the costs have dropped by 22 percent per year to handle that traffic.

Consumers do not want these Internet Overcharging schemes.  Time Warner Cable should do itself a favor and drop them, once and for all, just as they have done for their Road Runner Mobile service.  If 3G/4G wireless broadband from Time Warner comes without usage caps, why in the world should cable broadband be any different?

"Without limits" is ironic from Time Warner Cable, whose CEO still believes in Internet Overcharging schemes, even if customers don't.

Time Warner Cable has stopped promoting three different service plans for its Road Runner Mobile wireless broadband service.  The company’s new promotional literature and website now promotes just one mobile plan  — National Elite, with three different prices depending on what kind of business you do with the cable company.  It also does away with Internet Overcharging schemes, promoting an “unlimited data allowance” regardless of whether you access the service over 3G or 4G networks.  That’s ironic, because Time Warner Cable’s CEO Glenn Britt is still a big believer in consumption billing schemes and usage limits.  Should Time Warner Cable ever return with new overcharging schemes, we’ll be sure to remind them about the implications of providing unlimited wireless service while trying to restrict the much larger wired pipeline Road Runner’s cable-based network provides.

As we reported last year, when Time Warner Cable introduced Road Runner Mobile last winter in North Carolina, the company offered three different service plans for customers considering signing up:

• National Elite: Unlimited access to Clear WiMax and Sprint’s 3G EVDO Rev. A network for $79.95 per month to customers who also take the Road Runner Standard or Turbo cable modem service. Time Warner promises further discounts if customers subscribe to the cable provider’s double or triple-play cable service bundle which includes cable internet access and digital phone service.
• Mobile Elite: Unlimited access to mobile WiMax for $49.95 per month and pricing also applies when bundled with the Standard or Turbo cable modem service with an additional bundle discount available.
• Mobile 4G Choice: Caps mobile WiMax use at 2 gigabytes per month and will sell for $39.95 per month if customers add at least one other Time Warner cable service.

Now, as the company introduces the service in upstate New York, customers are getting promotions online and off for only one plan — National Elite.

Pricing appears to be standardized in most regions of the country, depending on what kinds of services you already receive from Time Warner Cable:

• Current Road Runner subscribers will pay $54.99 per month for National Elite;
• Current Time Warner Cable subscribers and those without cable or broadband service will pay up to $69.99 per month.

(Several cities in Texas can obtain special pricing promotions reducing the cost to $49.99 per month for 12 months.  Ask about special promotional pricing if you intend to sign up.)

Customers can select a plan that includes a two year service agreement with a $175 early termination fee (reduced by $7.50 for each month you remain a customer) and receive a substantial discount on a wireless modem and get the $35 activation charge waived.  Non-contract customers will have to buy their equipment at full price and pay the activation fee.  4G network speeds are up to 6 Mbps for downloads, and up to 1 Mbps for uploads. 3G network speeds are up to 1400 Kbps for downloads, and up to 500 Kbps for uploads, according to the Time Warner Cable website.

Plans directly available from Clear, which actually provides the Road Runner Mobile service are different:

• Clear On-the-Go provides 4G-only service for $40 a month.  No 3G service.
• Clear On-the-Go 3G Upgrade includes unlimited 4G service and up to 5GB of 3G usage for $55 a month.
• Get Two: Home + On-the-Go includes service for one home computer and one portable computer, with no 6Mbps download speed cap, for $55 a month (add $15 for 3G service)
• Get Two: On-the-Go includes service for two portable computers, with no download speed cap, for $65 a month (add $15 for 3G service for one computer, $30 for two)

A $35 activation fee applies to non-contract customers.  If you agree to a two-year contract, you can lease your equipment from Clear starting at around $5 per month and have the activation fee waived.

Now the fine print.

Although Clear markets its 4G service as “unlimited,” the fine print suggests they can make life difficult for customers they consider “disrupting or degrading” the service for others (underlining ours):

Excessive Utilization of Network Resources. Wireless networks have capacity limits and all customers can suffer from degraded or denied service when one or a small group of users consumes disproportionate amounts of a wireless network’s resources. Clearwire, therefore, will monitor both overall network performance and individual resource consumption to determine if any user is consuming a disproportionate amount of available resources and creating the potential to disrupt or degrade the Clearwire network or network usage by others. This process of monitoring both overall network performance and individual resource consumption is consistent with the description of the nature of the Service previously described in this AUP. Clearwire reserves the right to engage in reasonable network management to protect the overall network, including analyzing traffic patterns and preventing the distribution of viruses or other malicious code.

During periods of congestion, Clearwire uses various techniques such as reducing the data rate of individual bandwidth intensive users whose use is negatively impacting other users. This temporarily limits the amount of bandwidth available to the bandwidth intensive users until the congestion has diminished, at which point Clearwire will endeavor to lift any limits it may have imposed on bandwidth intensive users during the period of congestion. Clearwire may also consider historical usage patterns when temporarily reducing the data rate of bandwidth intensive users during periods of congestion. When feasible, upon observation of an excessive use pattern, Clearwire will attempt to contact you by telephone at the telephone number you gave to us or otherwise to alert you to your excessive use of bandwidth and to help you determine the cause. Clearwire representatives also are available to explain this AUP and to help you avoid excessive use incidents. If you are unavailable or do not respond to Clearwire’s attempt to contact you regarding excessive use, or if excessive use is ongoing or recurring and repeatedly having negative effects on other subscribers of the Service, Clearwire reserves the right to immediately restrict, suspend or terminate your Service without further notice in order to protect the network and minimize congestion caused by the excessive use. While the determination of what constitutes excessive use depends on the specific state of the network at any given time, excessive use is determined by resource consumption relative to that of a typical individual user of the Service and not by the use of any particular application.

Unlimited Use Plans.If you subscribe to a service plan that does not impose limits on the amount of data you may download or upload during a month, you should be aware that such “unlimited” plans are nevertheless subject to the provisions of this AUP. What this means is that all of the provisions described in this AUP, including those that describe how Clearwire may perform reasonable network management such as reducing the data rate of bandwidth intensive users during periods of congestion, will apply to your use of the Service. The term “unlimited” means that we will not place a limit on how much data you upload or download during a month or other particular period, however, it does not mean that we will not take steps to reduce your data rate during periods of congestion or take other actions described in this AUP when your usage is negatively impacting other subscribers to our Service.

Time Warner Cable is back again with another offer to existing Frontier Communications customers trapped in multi-year service agreements.  If you dump your Frontier landline overboard for Time Warner Cable’s Digital Phone service, the cable company will send you a gift card worth $200 good towards defraying your early termination fee, if any.  If you don’t have such a fee, you pocket the $200.  A year ago on this date the company ran a similar promotion heavily promoted in local cable television ad spots.

Time Warner will provide free installation of the phone line including unlimited nationwide long distance for $24.95 a month for 12 months.  With the $200 gift card, that’s above and beyond their usual promotion.  The company is also extending a bundled discount if a customer also takes Road Runner broadband service with their “digital phone” service.

For Frontier customers looking for an early exit, this offers one opportunity.

Existing cable subscribers can take advantage of the offer.  There are terms and conditions to consider, starting with where the offer is available.  The following Time Warner Cable service areas qualify:

• TWC Western New York
• TWC Central New York
• TWC Albany, NY
• TWC New England
• TWC Dothan, AL
• TWC Enterprise, AL
• TWC Yuma, AZ
• TWC El Centro, CA
• TWC Gunnison, CO
• TWC Telluride, CO
• TWC Coeur d’Alene, ID
• TWC Moscow, ID
• TWC Madison, IN
• TWC Newburgh, IN
• TWC Terre Haute, IN
• TWC Ashland, KY
• TWC Owensboro, KY
• TWC Richmond, KY
• TWC Kansas City, MO
• TWC Lincoln, NE
• TWC Ironton, OH
• TWC Richlands, VA
• TWC Pullman, WA
• TWC Clarksburg, WV

Next, the offer is only good for residential customers switching from Frontier’s landline service.  Limit one gift card per customer.  Your final Frontier phone bill showing a disconnect request must be furnished to Time Warner Cable within 30 days to qualify.  Your name and address must match on both bills.  Offer is not available to customers with past due balances with Time Warner Cable, defined as any money owed in the past 30-60 days or customers who have been disconnected for non-payment in the twelve (12) month period preceding this offer.  Service must be ordered by Dec. 31, 2010, and installation must occur within thirty (30) days of order date.

If you’ve contemplated a change in providers but didn’t want to be subjected to a steep early cancellation fee, this isn’t a bad offer.  Although I don’t use Time Warner Cable Digital Phone myself, others in my family do and they are satisfied with the service, although there have been at least two serious outages so far this year that ran several hours.  Since most people also carry a cell phone, any cable outage or power interruption that also takes out your phone line isn’t as serious as it might have been in earlier years.

And, ahem, unlike Time Warner Cable’s attitude towards broadband, they really do provide unlimited calling with their “digital phone” service.

Time Warner Cable is mailing this letter to Frontier Communications customers in the Rochester, N.Y. market. (Click to enlarge)