Most analysts are predicting this past year will be the worst yet for video customer losses, with nearly two million cable TV customers cutting the cord in 2019, up from 1.26 million in 2018. Business is even worse for satellite TV operators, which lost 1.2 million customers in 2018 and are expected to have shed another 3.25 million customers in 2019 — mostly because of mass customer defections at AT&T’s DirecTV. Altogether, over five million Americans are estimated to have cut the cord over the past year.

Investors have largely stopped worrying about video subscriber losses, and cable operators have boldly told Wall Street they have stopped chasing video customers threatening to cancel service, claiming many are no longer profitable enough to keep. Their key competitors, online streaming video services like Sling TV, AT&T TV Now, and Hulu with Live TV are also seeing subscriber gains slowing, most likely because of price increases. One analyst predicted these online cable TV replacements would add a combined 804,000 customers in 2019, less than half of the 2.3 million they added in 2018.

Cable companies seem unfazed, in part because of record-breaking gains they are expected to have made in internet and wireless customers in the last year. One analyst suggests that most of those gains are coming directly at the expense of phone companies.

Comcast and Charter are the two largest cable companies in the United States.

“Cable’s clear speed advantage in roughly half the U.S. is driving continued strong share performance,” Jayant told clients in a research note. Jayant expects some of the biggest gains will come from ex-DSL customers in Comcast and Charter Spectrum’s service areas.

Nationwide, cable operators likely added 3.1 million new broadband customers in 2019, up 15% over last year. Phone companies are predicted to have lost at least 402,000 internet customers, up from 342,000 in 2018. Most of those departing customers are not served by fiber broadband.

Both Comcast and Charter Spectrum are also successfully attracting a growing number of mobile customers, as is Altice USA. Charter and Comcast offer their broadband customers the option of signing up for wireless mobile service, powered by Verizon Wireless. Altice USA resells Sprint service at cut-rate prices.

Comcast is estimated to have added 778,000 wireless customers in 2019 and analysts predict that the company will add another 909,000 in 2020. Charter Spectrum is expected to have gained 923,000 wireless customers in 2019, with another 1.04 million likely to sign up in 2020. Altice USA’s deal with Sprint in its Cablevision/Optimum service area has already attracted about 80,000 customers, with 550,000 more likely to follow in 2020.

Residents in upstate New York are finding Spectrum bills in their mailbox for services they didn’t order and don’t want, after telling Spectrum telemarketers they were too busy to talk.

Three residents in Tupper Lake have been in touch with the village mayor, complaining they were enrolled in a $30-per-month Spectrum streaming TV service without their knowledge or consent.

Mayor Paul Maroun says recent robocalls from the cable operator were responsible for the surprise bills.

“It was a robocall that said, ‘Are you busy at the moment?'” Maroun said. “Once you said ‘yes,’ they record the ‘yes’ and they bill it.”

Maroun said he believes one or more Spectrum telemarketers are ordering new services for consumers using recorded customer responses to a different question as consent to start service. Within a month, bills start arriving in the mailboxes of consumers. Even worse, some consumers do not immediately realize they are being billed for new services they did not authorize because they chose electronic billing and autopay, which automatically pays the bill without customer intervention each month.

The problem was serious enough to be a topic of discussion by the village board, reports the Adirondack Daily Enterprise:

One alleged victim of the call is retired village electric department superintendent Marc Staves, who returned to the village board for a meeting on Wednesday as a civilian to tell the board about his experience and to warn others.

Staves said he caught the additional charge on the first month it landed on his bill. He said he is not sure how it happened because he does not remember taking a call. Staves said Spectrum told him a robocall was placed, but he said his phone records show he never answered it.

“That’s kind of underhanded,” Staves said when he learned how the call works at the village board meeting.

He has automatic payments set up on his account, but still checks the amount.

“It’s always good to keep track of your automatic deductions,” Staves said.

He was told the company would refund his money, but said after a week it still hadn’t. When he called again he said he was told the $30 charge would be taken off his next month’s bill.

“I was okay at that point until I hung up the phone and thought about it,” Staves said. “It’s really no different than me going into your wallet, taking $30 out of your wallet and telling you I’m going to work it off next month.”

He said he is “not satisfied” with the resolution Spectrum offered him, saying it is being done in a “roundabout way.”

Maroun told Staves he has received two other calls from villagers about the same problem, both for $30-per-month charges. He said those people have gotten their money back.

Mayor Maroun

Spectrum spokesperson Lara Pritchard said this was the first time she heard of this complaint and suggested third party scammers might be “spoofing” customers.

“If an offer doesn’t sound right, customers can ask the representative on the phone to validate they are an employee by looking up their account number,” Pritchard wrote in an email. “Spectrum representatives will always have an account number. Then call Spectrum (at their customer service number on your bill) and ask if there is any such person working there.”

But since consumers are being billed for the unauthorized service(s) on their Spectrum bill, the telemarketers must have a business relationship with the cable operator. It could be a third party marketing company hired by Spectrum to sell service. A bonus or commission is likely payable for each successful sale, which could be an incentive for a dishonest employee to game the system.

Stop the Cap! recommends not answering Spectrum’s telemarketing calls or just hang up immediately. Be sure to verify your bill through the My Spectrum app or website and report any unauthorized charges immediately. Consumers can also file complaints with your state Attorney General’s office. Fabien Levy, a spokesman for New York’s Attorney General told the newspaper while the office has received a number of complaints about Spectrum, none were related to this issue. That could change if consumers report these kinds of scams.

This Spectrum door-to-door salesperson tells a Bath, N.Y. customer the cable company bought the competition.

A Spectrum door-to-door sales representative has a new trick up his sleeve to win back customers who switched to a competitor: lie and tell them Spectrum bought out the competition and sooner or later customers will once again be dealing with the cable company.

Spectrum Rep: “To get you guys back on board with our service, we’re going to lock your price in for two years.”

A Bath, N.Y., customer of Empire Access, a competing fiber to the home provider offering service in the Southern Tier of New York: “I’m not interested.”

Spectrum Rep: “We just bought Empire, you know, so sooner or later you’re going to be with us.”

Customer: “So you’re going to raise up your rates?”

Spectrum Rep: “No, we’re just going to get everybody switched over, so whenever you’re ready. The official switchover is in March, so sooner or later you’ll be on board with us or you’ll be on satellite for internet. Right now we’re offering you a deal to get on board early.”

The “deal” was $50 a month for 100 Mbps internet, which is hardly a deal at all considering new Spectrum customers in competitive service areas can often sign up for 400 Mbps service for $29.99 a month for two years. More importantly, the salesperson openly lied to make a sale.

Empire Access marketing director Bob VanDelinder says Empire Access did not sell to Spectrum and has no plans to sell itself to anyone.

“Our company is locally owned and operated, and deeply rooted in the communities we serve,” VanDelinder said. “We can keep our customers based on our service, our price. We’re very competitive and play fair. We think that’s extremely important to play fair and keep it a level playing field and be honest to our customers.”

The customer captured most of the conversation on his Ring video doorbell and shared it with Empire Access. At least one other Empire Access customer said he experienced a similar encounter with the deceptive salesperson.

“The content of the video is not accurate and we’re investigating these apparent comments by the sales representative,” responds a Spectrum spokesperson.

Spectrum typically contracts out its door-to-door marketing to third party companies, with employees typically earning a commission or bonus based on each successful sign-up.

Empire Access is requesting customers who have experienced similar misleading claims to contact the company at: 1-800-338-3300.

Spectrum representative lies about the competition.

WENY-TV in Elmira, N.Y. reports on a Spectrum door-to-door salesperson using dirty tricks to try and fool customers to switch back to the cable operator. (2:32)

No service.

Despite New York Gov. Andrew Cuomo’s $500 million, 2015 Broadband for All initiative which guaranteed broadband service for anyone  that wanted home internet access, five years later rural broadband gaps continue to plague the state.

A bill that would set aside funds to complete a feasibility study to launch a state owned broadband provider of last resort was quietly vetoed by Cuomo at the end of 2019. Assembly member Aileen Gunther (D-Monticello) sponsored the bill after hearing scores of complaints about terrible or non-existent internet access from constituents in her district, which covers the parts of the rural Catskills region north of the Pennsylvania border.

Gunther complained that despite the governor’s broadband initiative, private phone and cable companies were still ignoring rural customers, leaving them with slow DSL service or no internet access at all. Gunther’s bill was a first step in potentially allowing the state to step in and provide service to New Yorkers unable to get broadband from any private provider.

New York has spent over $500 million on its Broadband for All program and made Charter Spectrum an integral part of its broadband expansion plans in return for approval of its 2016 acquisition of Time Warner Cable. But a growing number of the governor’s critics claim the program has failed to deliver on its mandate, stranding thousands of New Yorkers without internet service and tens of thousands more with just one option — unpopular satellite internet access.

Gunther

Gunther was upset to learn that New York was prepared to hand over more than a half billion dollars to large private telecom companies including Frontier Communications and Verizon while not being willing to spend a penny to fund projects to reach New Yorkers for-profit companies could not be dragged kicking and screaming to service.

“We’re all spending millions and millions of dollars on privately owned internet service providers,” said Gunther. “In return for promises, a lot of our communities do not have access to the internet, or if they do have access to the internet, it’s slow and these companies are not, I think, fulfilling the promises made.”

The rural broadband problem is not resolved in the Finger Lakes or Southern Tier regions of New York either. This week, Yates County announced it was joining an effort by Schuyler, Steuben, and Tioga counties, and the Southern Tier Network, to complete a broadband feasibility study to improve internet access in the four counties. Fujitsu Broadband will manage the study and hopes to have results by June. The study will target the pervasive problem of inadequate broadband service in the region, which includes crucial tourist, winery, and agricultural businesses vital to New York’s rural economy.

Gov. Andrew Cuomo announcing rural broadband initiatives in New York in 2015.

Gov. Cuomo has called such initiatives “well-intentioned” but was non committal about contributing more state funds to construct new networks or underwrite further expansion of existing ones. New York is about to begin its annual hard-fought budget negotiations in hopes of completing the state budget by April. Finding funding for such projects will probably require a powerful political advocate able to wrestle funding for further broadband improvements.

Even after spending $500 million, New York’s rural broadband problem has not been resolved. That offers insight into the merits of other state broadband programs, which often limit annual broadband expansion funding to under $30 million annually.

Those still without service are likely in high-cost service areas, where each customer could cost over $20,000 to reach. New York’s Broadband for All program relied on a reverse auction that required private companies to bid to service each unserved address. No wireline provider bid on any high-cost service areas, leaving Hughes Satellite as a subsidized satellite provider of last resort. But inadequate broadband mapping left scores of rural New Yorkers behind without even the option of subsidized satellite internet access.

Comcast and Charter Communications have begun to compete outside of their respective cable footprints, potentially competing directly head to head for your business, but only if you are a super-sized corporate client.

Comcast Business has targeted selling large Fortune 1000 companies internet service through contractual partnerships with Charter, Cox, and Cablevision/Altice USA for a few years now. The cable giant recently entered the Canadian market, at least for U.S.-based companies that have satellite offices north of the border. Comcast now directly competes with other cable operators selling enterprise-level broadband service, whether the customer is inside Comcast’s footprint or not, but will not offer a similar service to consumers looking for better options.

The cable industry’s longstanding de facto agreement not to compete head to head for customers will probably remain intact even as Charter this week unveils its own national broadband service called Spectrum Total Connect. It will be available across the country, offering customers up to 940 Mbps broadband service at a highly competitive price, but only if you are running a large business and have an account with Spectrum Business National Accounts, which provides connectivity for large business franchises, national retailers, and companies utilizing a large network of telecommuters scattered around the country. Consumers need not apply here either.

Charter has refused to say who it has partnered with to provide the service, but it is likely a reciprocal agreement with Comcast and other cable companies it already works with to provide enterprise-level service. The new service will be rolled out in the next several weeks.

Cable companies have been successful selling connectivity products to small and medium-sized businesses, but large national companies have traditionally relied on phone companies to provide them with total connectivity packages that can reach all of their locations. Until Comcast began selling service outside of its footprint, cable companies have had to turn down business opportunities outside of their respective service areas. But now Comcast and Charter can reach well beyond their local cable systems to satisfy the needs of corporate clients.

But neither company wants to end their comfortable fiefdoms in the residential marketplace by competing head to head for customers. Companies claim it would not be profitable to install redundant, competing networks, even though independent fiber to the home overbuilders have been doing so in several cities for years. It seems more likely cable operators are deeply concerned about threatening their traditional business model supplying services that face little competition. In the early years, that was cable television. Today it is broadband. Large swaths of the country remain underserved by telephone companies that have decided upgrading their deteriorating copper wire networks to supply residential fiber broadband service is not worth the investment, leaving most internet connectivity in the hands of a single local cable operator. Most cable companies have taken full advantage of this de facto monopoly by regularly raising prices despite the fact that the costs associated with providing internet service have been declining for years.

Cherry-picking lucrative commercial customers while leaving ordinary consumers mired in a monopoly is more evidence that the U.S. broadband marketplace is broken and under regulated. Competition is the best solution to raising speeds while reducing prices — competition regulators should insist on wherever possible.