Pai

Despite the potential for a Democratic Party takeover of the U.S. House of Representatives that is likely to usher in a new era of more aggressive oversight of the Republican-dominated Federal Communications Commission, current chairman Ajit Pai “plans to lead the FCC for the foreseeable future.”

Multichannel News reports Pai is unlikely to leave his post just two years after being appointed to the position by President Donald Trump, despite an ethics controversy over alleged assistance given to Sinclair Broadcast Group to allow the company to acquire more stations despite a federal ownership cap on the number of stations that can be owned by a single entity. Pai also was responsible for a highly controversial decision to cancel net neutrality provisions enacted during the Obama Administration.

“Chairman Pai remains focused on his key priorities, including bridging the digital divide, fostering American leadership in 5G and empowering telehealth advancements,” said Brian Hart, director of the FCC’s office of media relations.

Should both the Senate and House flip to Democrats in next week’s midterm election, Pai’s agenda of deregulation, media consolidation, and elimination of many Obama-era consumer protections would be in peril and subject to determined Congressional oversight.

Pai has taken heat from consumer groups for ending a set-top box competition program that could have forced television providers to accept equipment obtained competitively in the retail market. He also faced criticism for reinstating a program giving UHF TV station owners the opportunity to acquire more stations, directly benefiting Sinclair and allowing it to pursue its since failed merger with Tribune Broadcasting.

Charter Communications is once again raising rates on Spectrum cable customers. Readers are notifying us that their October billing statements in certain regions show new, higher pricing for certain services. Charter typically adjusts prices at least once, but sometimes twice annually, gradually rolling the higher prices out across the country.

The most important include:

• Another $5 rate hike for the Standard Internet plan (100 or 200 Mbps). Depending on your bundle, prices are increasing from $54.99 for broadband and television customers to $59.99. Standalone internet customers in some areas are seeing a $1 increase from $64.99 to $65.99 a month. If rates are increasing for your plan, share it with us in the comment section.
• Spectrum’s basic set-top box, formerly $5.99 a month with a mandatory $1 Secure Connection surcharge is increasing to $7.50 a month, effectively a $0.51 increase per box.
• The Broadcast TV Surcharge is also increasing once again by an average of around $1 a month. For many areas, this surcharge is now approaching $10 a month and applies to all cable television customers. Charter claims it is passing on the costs of retransmission consent agreements it has signed with local TV stations in your area. The amount varies, depending on what stations in your area charge Spectrum.

There are likely other rate adjustments not noted here. Many customers who bundle services may not see the full extent of the rate hikes because of bundling discounts, with the exception of the Broadcast TV Surcharge, which is not subject to being waived or discounted.

Subscribers can find the current rate card for their area on a special section of Spectrum’s website, although not all rate cards are provided.

Cable and satellite companies are notorious for baiting customers with cheap offers for internet, phone, and television service and then shocking them when the first much-higher-than-expected bill arrives, but Altice’s Optimum/Cablevision takes the bait and switch promotion to a whole new level.

Jim C. (who didn’t want to reveal his last name) is a Cablevision customer of over ten years who recently saw a rare promotion targeting existing customers offering 200 Mbps internet and “Core” television service for $99/month. That was nearly $40 less than what he was paying for service, and was his chance to slim down his TV package and get a speed upgrade as well.

“I called the number to ask about the promotion because I know how these companies work,” Jim told Stop the Cap! “You always have to get them to read off the fine print because many fees and surcharges get buried there.”

Jim was right. An impatient Optimum representative was willing to admit “there are some extra fees,” and sighed as Jim asked for details. By the time Jim was finished writing them down, he needed a second sheet of paper.

“This should be illegal — it is clearly ‘bait and switch’ designed to lure you at one price and then stick you with so many fees it turns out to be not much of a deal at all,” Jim shared. “In fact, it turned out to be more expensive than what I am paying right now!”

For the benefit of customers seeing similar promotions, here is a breakdown of just some of the extra fees not included in the $99 price:

Promotion: $99 Optimum Core Double Play Upgrade (Core TV + 200 Mbps internet) for existing customers
Term: 2-year agreement, with penalties for ending contract early

Gotchas:

• Promotion for HBO and Showtime expires after 12 months; customers pay a regular price of $14.95 for HBO and $11.95 for Showtime during months 13-24. If you want access to on-demand titles, add $4.95/mo for each premium network.
• Cloud DVR promotion ends after 12 months; next 12 months you owe them the regular price, which is a whopping $17.95 a month.
• Service, equipment rates and random fees are subject to tax in some areas, up to 5.3%.
• FCC “User Fee” of $0.08/month and fees for public, educational, and government local access channels cost up to $1.35/month.
• Mandatory sports surcharge is $7.97/month.
• Mandatory Broadcast TV surcharge is $4.99/month

Equipment Fees:

• Modem rental is $10 a month.
• Altice One cable boxes needed for TV service carry a $20/month fee. “Mini boxes” are available for $10/month per TV.

That $99 promotion actually costs the average customer with two boxes at least $163.39 a month during the first twelve months, not including taxes, and assuming the customer owns their modem and has one Altice One and one Mini set-top box. During the second year, that “$99 offer” will cost customers in excess of $218 a month, assuming one keeps both premium networks and wants on-demand access as well.

“This is completely dishonest and outrageous,” said Jim. “You absolutely must pay very close attention to the fine print in these offers, because they can get very expensive, very fast.”

Some Spectrum customers are getting nasty surprises in their latest cable bills.

For some customers, it has been one year or more since Spectrum introduced new plans and pricing for former Bright House Networks and Time Warner Cable customers and one year since the company implemented all-digital cable television upgrades that require customers to place equipment on every television wired for cable in the home.

Many customers received “free” equipment as part of the digital upgrades, but may have forgotten that promotion only lasted one year. That is also the length of Spectrum’s various ‘new customer’ and ‘retention’ promotions. When the year is up, your bill goes up — sometimes dramatically.

In Cleveland, Ohio some customers are finding bills increasing $18-30 a month or more, sometimes increasing more than once as rate promotions and free set-top equipment deals end at different times in the year.

It is not unusual to find customers paying $180-225 or more a month for Spectrum’s “triple play” package of television, phone, and internet service, after promotions end. A significant percentage of customers still holding legacy Time Warner Cable and Bright House plans are finding those packages increasing in price as well. In comparison, new customers with a triple play package generally pay between $100-120 a month, depending on equipment.

Some of the rate changes Spectrum imposed over the last 12 months include:

• Equipment rate increases (usually around $1.00 a month per box)
• New “Secure Connection Fee”: $1.00/mo per box – Spectrum claims this fee covers “those measures Spectrum employs to manage and secure the connection between Spectrum’s system and the Spectrum receiver and other devices Subscriber uses to access Spectrum’s services.”
• Broadcast TV Surcharge rate increases
• Internet service rate increases

Although Spectrum has reportedly become more amenable to offering retention deals to customers threatening to leave, the best deals are still for new customers. Some have dropped Spectrum service and signed up again under the name of another household member to secure a better deal. Others will have to wait 30 days after ending service before one is qualified for a new customer deal once again.

WKYC in Cleveland reports some Spectrum customers are upset about sudden bill changes. (2:34)

DirecTV’s satellite lineup, delivered over the internet.

DirecTV satellite customers with broadband connections might be able to scrap their satellite dishes and set-top equipment when AT&T launches its broadband-delivered version of DirecTV by the end of 2018.

AT&T Communications CEO John Donovan made the announcement at the MoffettNathanson Media & Communications Summit on Tuesday, telling the audience the lineup would be nearly identical to the satellite TV packages customers get today from DirecTV’s satellite dish service.

Customers who opt to dump their dish may also save money by moving their subscription to a broadband platform. Currently, AT&T sells DirecTV for $120-200 a month, depending on equipment and channel lineup. The broadband equivalent, which will not require any expensive set-top box equipment and will rely on a cloud-based DVR, will sell for $80-90 a month.

DirecTV satellite packages (new customer promotional rates — regular prices are higher)

“We won’t roll a truck,” to install a satellite dish, Donovan said. “The [equipment costs] will be cheaper. It will be a thinner, lighter version and we will have lower operating costs. We anticipate passing [on] a lot of those cost savings [to customers].”

Donovan believes a transition away from satellite will be a win-win for the company and consumers because both will face lower costs. It also gives DirecTV the chance to expand, marketing its full video lineup to customers who can’t get a satellite signal, don’t want a dish, or live in a building that restricts satellite equipment.

“It will extend our footprint,” Donovan said at the MoffettNathanson event. “It will not only have a lower price point, but it will have margins that are similar and, therefore, better returns because there will be less upfront costs.”

With today’s announcement, AT&T will have at least five different video products on offer for consumers: DirecTV satellite service, DirecTV over broadband, DirecTV Now — a slimmed down package targeting cord-cutters, U-verse TV — AT&T’s traditional cable TV package, and AT&T Watch — a forthcoming ultra-slim offering that will cost $15 a month for non-AT&T wireless customers. Existing AT&T wireless customers will get Watch free of charge, if they have an unlimited data plan.