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Satellite Fraudband Providers Claim “Fiber-Like” Speeds in the Future; “When Pigs Fly,” Says One Customer

Dream On: WildBlue's home page shows a user thrilled about an Internet experience she'll never truly enjoy with a monthly usage limit at low as 2.3GB. Exceed it and face the consequences: WildBlue's Time Out Corner: a speed throttle delivering 128kbps downstream and just 28kbps upstream.

When is broadband not broadband?  When it is delivered by hopelessly overloaded and underpowered satellite providers that annoy their subscribers with high prices and low usage allowances.

For many customers of WildBlue and HughesNet, getting high speed Internet access remains a far off dream. No broadband Internet service is more rationed and speed throttled than satellite “fraudband.”

Most satellite broadband customers live in America’s most rural areas, literally miles away from the nearest telephone exchange and often hundreds of miles away from a town with cable broadband.  Even wireless Internet providers can’t find enough customers to justify the costs of delivering service.

For America’s most rural, there are three choices:

  1. Go without.
  2. Use dial-up service.
  3. Choose the least annoying satellite provider you can afford.

Just over one million Americans have stuck it out with choice number three, paying twice as much wired Americans pay for broadband and getting just a fraction of the speed and use.

But both providers claim that is all about to change.

WildBlue and HughesNet are in a hurry to launch brand new satellites with dramatically improved capacity that will deliver, they claim, “speeds as fast as fiber.”

For Stop the Cap! reader Adele in a rural part of Arizona, she’ll believe it when she sees it.

“As Stop the Cap! has said all along, anyone who thinks satellite ‘broadband’ is a useful alternative to DSL or cable Internet should be condemned to use it,” she writes.  “Everyday brings a new frustration, especially with so-called ‘Fair Access Policies’ that effectively restrict your use to web page browsing and e-mail.”

HughesNet explains how their satellite service uses your satellite dish to send and receive Internet data. (click to enlarge)

For many people running Microsoft Windows, the company’s monthly gift of bug fixes, service packs, and updates is just a minor nuisance. For satellite Internet customers, it can sometimes mean the “day of no Internet.”

Adele explains:

If you have multiple computers and Microsoft determines it has a lot of screw-ups to fix, the monthly updates can easily run into the hundreds of megabytes when every computer receives their individual updates.  HughesNet’s “budget” Home and Pro Plans cost up to $70 a month and only include a daily allowance of up to 300 megabytes.  It’s no trouble at all to exceed that usage on increasingly large web pages loaded down with video advertising, pop-ups, and other content.  Now deal with Microsoft Update Day and in our house, that means you get a good book and stay offline.

If she doesn’t, HughesNet inflicts a stinging punishment — 24 hours in the time out corner with barely dial-up speed penalties for exceeding the limit.

But both satellite providers promise better days ahead when their newest satellites are launched into space.

The New York Times notes WildBlue’s next generation of satellites will bring 10 times the capacity of its three current satellites combined.  That opens the door for faster satellite broadband, according to both companies, without price increases.

HughesNet believes satellite broadband’s best days lie ahead, especially as a contender in the rural broadband market.

“One advantage satellite has is ubiquity,” Arunas G. Slekys, vice president for Hughes Network Systems, said. “The cost of reaching you with a satellite dish is independent of where you are. Fiber or cable is labor-intensive and dependent on distance.”

As to satellite’s potential in rural regions, “clearly, there’s an unserved market,” Mr. Slekys said. “And it’s not as though they have terrestrial or satellite. They only have satellite as a choice.”

Can a new generation of satellites save satellite broadband?

One question the Times didn’t ask is whether increased capacity will mean the end of so-called “Fair Access Policies” that strictly ration the amount of browsing customers can manage before the speed throttle punishment begins.  Neither company is saying.

“When pigs fly,” Adele thinks.  “Sometimes these satellite companies think rural people are just plain stupid.  When you live this far out in the country, you learn to recognize snake oil salesmen when you see them.  Why give us more access when nobody else will provide the service?”

The sudden interest in satellite broadband in the nation’s paper of record is no coincidence.  Both HughesNet and WildBlue are upset they are not getting a bigger piece of the broadband stimulus pie.  The Times notes just $100 million out of $2.5 billion in U.S. Department of Agriculture grants for rural broadband will go to satellite companies.  Raising the question in a newspaper widely read in Washington can’t hurt your cause.

Thomas E. Moore, chief of WildBlue, said satellite technology would be able to serve thousands more rural residents than terrestrial services at a fraction of the cost. He cited a $28 million grant to a nonprofit group in North Carolina to extend fiber to 420 schools and libraries. That same grant could have instead directly served 70,000 residents in North Carolina through satellite service, Mr. Moore said.

“For every one of those people, there are literally hundreds more who won’t have access to stimulus funds,” he said.

But Joseph Freddoso, president of MCNC, the nonprofit group that manages North Carolina’s public education technology network, said satellites were not an ideal primary service for his users, who require a more reliable network for their research and data-heavy applications.

“To compare what we do with what satellite does as a service is an apples-to-oranges comparison,” Mr. Freddoso said, adding that the grant will serve one million students in 37 counties.

Adele is concerned that means even more people will fight for the limited resources satellite has until the next generation of satellites get launched, especially for rural customers trying to share a spot beam in North Carolina.

“These companies have really stopped heavily promoting themselves in parts of rural America because both are already at or over capacity in many places,” she says. “The advertised speeds for some parts of the country are straight out of Alice in Wonderland — total fiction, and with the lag time that comes naturally from sending and receiving data over a distance of 22,000 miles, it’s not getting any better.”

Adele is referring to the satellite providers’ regionally-directed signals.  Much like how satellite TV companies can deliver local stations within limited regions of the country, satellite Internet service can be divided up and delivered to certain parts of the United States.  One beam might serve rural Louisiana, another could be directed to northern California, and so on.  Once a region’s capacity nears saturation, speed and performance suffers.  In areas where capacity remains underused, the service performs better.

Regardless of the promises for enhanced satellite broadband, most cable and fiber broadband providers spend no time pondering the competitive impact, because there is none.  They plan to continue ignoring the likes of WildBlue and HughesNet for years to come.

Kevin Laverty from Verizon told the Times their FiOS fiber network is expensive to deploy but is light years ahead of satellite when it comes to speed and easy upgrades.

“Fiber optic is virtually an unlimited technology,” he said. “All you have to do is change the electronics on either end.”

A spokesman for Time Warner Cable said cable broadband speeds already easily exceed the satellite providers’ proposed new speeds, so they have nothing to worry about.

For most satellite customers, WildBlue and HughesNet are not choices, they are realities if rural Americans want to participate in the broadband revolution.

“Nobody chooses these satellite providers over DSL, cable, fiber, or even most wireless ISPs,” Adele says. “They choose satellite because of the absence of these other providers.”

Should Adele’s local phone company offer her DSL or a wireless broadband provider arrive to deliver service, would she switch away from HughesNet?

“In a shot,” she says. “I dream about throwing their dish into the biggest bonfire I can build and then my neighbors and I visit their headquarters to horse-whip them for years of horrible service and throttled speeds.”

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/Satellite Fraudband.flv[/flv]

We’ve assembled some examples of advertising for both HughesNet and WildBlue, typically seen on networks catering to rural Americans, a brief interview with a representative from WildBlue, and some actual customer… uh… “testimonials” about the quality of service actually received.  Finally, we’ve included the most painful speed test ever encountered.  The original video was silent and some might think it’s actually stuck.  It’s not.  We’ve added some music to spice things up or to increase your pain and suffering.  You might want to get a piece of cake for this. Oh, and one last thing:  If you are using a satellite provider to access Stop the Cap!, forget about the video.  Watching it will eat almost a quarter of your daily usage allowance.  (6 minutes)

Customers Accuse Verizon of “Optimizing” Down DSL Speeds to Reduce Expensive Upgrades, Service Calls

Phillip Dampier August 16, 2010 Broadband Speed, Data Caps, Rural Broadband, Verizon 9 Comments

An increasing number of Verizon’s DSL customers are discovering their broadband speeds cut, sometimes significantly, by the phone company’s internal line testing “optimization” tool, designed to deliver stable DSL service over a deteriorating, aging network of copper phone lines.

Regular Stop the Cap! reader Smith6612, who is extremely familiar with the technical workings of DSL service, dropped us a note to report a disturbing trend of complaints from Verizon customers who are waking up to speed cuts that often don’t make sense.

At issue here is the highly variable nature of DSL speed and how providers manage it for customers.  Data delivery over America’s aging copper wire, meant-for-voice-calls-network has always been somewhat of a bootstrapped affair, all the way back to the days of dial-up.  Most phone companies have always included detailed disclaimers for customers relying on a phone network envisioned more than 100 years ago for 21st century data communications.  No guarantees on speed or access are among the most common, especially with DSL service which is highly distance and line quality sensitive.

In short, the further away you live or work from the phone company’s exchange (where your individual phone line eventually ends up), the lower the speeds that line can support, if it can support DSL service at all.  Badly managed wiring along the way can dramatically reduce the quality of your service.  Sammy the Squirrel could chew enough insulation off a phone cable to expose it to interference from radio signals.  Water finding its way into cables and connection boxes can turn excellent DSL service into no service at all during bad weather.  Even temperature variations between seasons can eventually corrode, degrade, or destroy fittings, connectors, or any number of vital components necessary for good service.

Unfortunately, if companies do not properly invest resources to maintain their legacy phone networks, service problems are bound to increase sooner or later.

Many DSL customers do not really have an understanding of what speeds they should be getting from their providers, much less be able to easily identify when those speeds have declined.  But they do understand service outages.  When a DSL modem runs into trouble supporting the speeds it is configured for, the unit will try to re-establish the connection.  This “sync” process can occur once a day or continuously — it all depends on what condition the line is in.

While this process is underway, anyone trying to use the Internet is likely to find their service unavailable.  That often results in a service call.

Source: The ConsumeristCalling to complain about a troublesome Internet connection is expensive — even when reaching one of the overseas call centers Verizon regularly uses for customer support.  Sending a repair truck to your home is even more costly.

One way to reduce these expenses, without upgrading or improving maintenance of your network, is to simply reduce the speed of the connection.

Verizon ironically calls their line testing process “optimization.”  Verizon’s software is designed to ascertain the maximum possible downstream and upstream speeds a line can continually support.  Those measurements are used as a basis for configuring the customer’s modem, placing a speed limit on how fast of a connection to negotiate, even if a customer is paying for a faster tier of service.  The goal is to stop the modem from losing a connection.

Unfortunately, sometimes customers with no service problems at all take a hit in speed along the way. For several weeks now, many long-standing Verizon DSL customers are discovering their speeds have been reduced and are finding Verizon’s “optimization” procedures directly responsible.  Some are accusing Verizon of recently configuring connections more conservatively to avoid service calls caused, in part, by years of neglect maintaining their landline network.

Bob in North Billerica, Massachusetts has experienced a speed cut himself.

Writing on the Verizon DSL forum at Broadband Reports, he noticed years of stable service at 1.792Mbps/448kbps are no more.  His maximum download speed has been cut to 1.5Mbps.

The same thing happened to Zaii in Philadelphia — despite stable service at higher speeds, he found himself cut back to 1.5Mbps as well.

Jack in Lakeland, Florida discovered his speeds has been “optimized” nearly in half by Verizon, and the company admitted it had capped his maximum speed as part of that process.  He was paying for 1.5Mbps service and received 700kbps-1Mbps service.

“The technician [sent to my house] found I could receive 2.6Mbps but Verizon had me “optimized” at 1.2Mbps because of my location,” Jack writes.  “The technician made a call and had the “optimize” cap removed and I am back to 1.54Mbps.”

It’s the same story in Ridgecrest, California where one Verizon DSL customer suddenly noticed a dramatic speed cut.  He pays for 1.5-2Mbps service and barely manages 1Mbps these days.  A Verizon technician thought even with the sudden speed loss, his speeds were still “pretty good.”

That attitude doesn’t exactly placate Verizon customers paying for more and receiving less.

Often, technicians sent to the home find their own line tests are far more optimistic about the speeds Verizon can support.  The customer in Ridgecrest, for example, learned from a technician his line can support 3Mbps, but Verizon’s corporate “optimization” software says otherwise.

A few anecdotal reports from customers listening to Verizon field technicians suggests many of these issues are being caused by Verizon’s “optimizing” software.  Once a service call commences, knowledgeable technicians manage to override the software settings and reset the connection back to support earlier, faster speeds.  But often these changes last only a few weeks before the problem returns.

Unfortunately, Verizon’s customer service department usually seems unconcerned about speed complaints.

“SDillman” in Uxbridge, Massachusetts relayed his experiences:

I talked Verizon DSL support and got them to run a line test and they confirm the data rate they are seeing is 1.216Mbps, which is exactly what I reported. Unless it drops under 1Mbps they won’t do anything because it is considered an acceptable speed.

What stinks is that up until last week my data rate was a constant 1.792Mbps and all my speed tests showed 1.5Mbps.  I even swapped out the modem today to try my backup and got the same rate.  So I’ve lost 500k for no reason at all and there is nothing I can do about it. It wouldn’t be so bad if I never had it, but losing it just doesn’t sit right with me. I might be looking at alternate providers and or mediums of broadband in the near future because that just leaves a poor taste in my mouth.

A Verizon DSL Modem/Router

Angry, motivated customers can wreak havoc on bad customer service practices, and SDillman managed to overcome Verizon’s speed throttles and shares advice for others in the same situation:

  1. Visit and register for an account on Broadband Reports.  Then visit and post a message in the Verizon Direct Support forum.  Those messages are kept private between you and a Verizon technical representative.  They have enhanced skills and authority over the traditional offshore customer service people, and in the words of “SDillman,” “are amazing — after getting the runaround from everyone else, those guys had a proper repair ticket created in no time.”
  2. Carefully listen to the technicians that are sent to your home.  The technician in Uxbridge was frustrated that his service visit revealed a line in what he called “pristine condition,” yet Verizon’s “optimization” speed throttle said otherwise and was directly implicated in the speed reduction.  The frustration mounted when Verizon’s own employee encountered the same roadblocks Verizon’s customers do from overseas customer service agents.  In this case, a call center employee attempted to explain the basics of how telephone lines work to a Verizon technician with over 30 years of experience.  The technician also didn’t respond any better to arguments that 1.2Mbps was a good speed when the customer is paying for a higher level of service.
  3. Most of these issues are best resolved between a Verizon service technician and employees at the central office exchange serving your home or business. Encourage a direct service call and do not accept over-the-phone assertions about speed issues, particularly from call center employees a half-world away.  If the problems go unresolved, a compliant about bad phone/broadband service filed with your state’s Public Service/Public Utilities Commission may bring about a higher level of response, even if broadband speeds are unregulated.

As SDillman shares, “For now my speeds are back up, until they ‘optimize’ the line again to try to free up some of the congestion on their crowded routers and begin stealing bandwidth [again]. I don’t know if this practice is illegal, but it certainly doesn’t pass the smell test. It feels a lot like going into a gas station and filling up your tank and then finding out 30% of it is water.”

Updated: Verizon and Google Cut Secret Net Neutrality Deal, Washington Post Reports

Verizon and Google have reached an agreement in principle to deal away Net Neutrality protections for American broadband users according to a late report in today’s Washington Post.

Cecilia King writes the agreement is days away from being revealed in public, but two sources verified Verizon and Google have agreed to a split the difference on Net Neutrality — abandoning the open Internet concept for wireless broadband, but protecting against service providers holding bidding auctions over the speed of web content delivery.

Verizon wouldn’t confirm that a deal was struck but said in an e-mail statement:

“We’ve been working with Google for 10 months to reach an agreement on broadband policy. We are currently engaged in and committed to the negotiation process led by the FCC. We are optimistic this process will reach a consensus that can maintain an open Internet and the investment and innovation required to sustain it.”

Specifically, Google and Verizon’s agreement would prevent Verizon from offering paid prioritization to the biggest bidders for capacity on its DSL and fiber networks, according to the sources. But any promises regarding open-Internet access wouldn’t apply to mobile phones, the sources said, speaking on the condition of anonymity because the companies have not officially made their announcement.

And Verizon could offer managed services — better quality to some Web sites such as those offering health care services, the sources said. But some analysts speculate that managed services could also include discounted YouTube and other services to FiOS customers at better quality.

Public interest groups, some occasionally accused of being in bed with Google, were outraged at the news.

“The fate of the Internet is too large a matter to be decided by negotiations involving two companies, even companies as big as Verizon and Google, or even the six companies and groups engaged in other discussions at the Federal Communications Commission (FCC) on similar topics,” said Gigi Sohn, president of public interest group Public Knowledge.

The clear distancing from Google’s settlement illustrates these pro-consumer groups are not simply shilling for Google’s public policy positions.

For Stop the Cap!, the implications are extremely disturbing.  As outlined, this compromise deal would relegate wireless broadband to usage caps, speed throttles, and content blockades indefinitely.  Should “improved quality” service on the wired side be an available option, it could allow the broadband industry to mount a devastating campaign to end would-be competitors, especially to their video businesses.  Cable and phone companies could pick winners and losers (with their products being the winners, and would-be competitors the losers) by prioritizing high quality video services, exempting their partners from Internet Overcharging schemes like usage caps, and subjecting would-be, “non-preferred” content providers to usage and speed-restricted broadband lines.

Offering preferred content producers discounted rates would also completely change the business models of content distribution and discourage investment in would-be challengers that could provide consumers with other video options.

More importantly, it provides an example of an Obama Administration ruthlessly willing to cut consumers out of the debate about Net Neutrality, while forcing them to live with the results.  King notes the priorities of Google and Verizon don’t exactly include consumers:

According to the sources, Verizon and Google have met separately to reach an agreement they will tout as an example of successful self-regulation. Once bitter opponents in the so-called net neutrality debate, the firms have grown closer on the issue as their business ties have also strengthened. Verizon partners with Google on their Android wireless phones.

Their actions could set a course for the FCC meetings and what ultimately the parties could present to lawmakers, analysts said.

Voluntary self-regulation worked so well with Wall Street banks and the housing market that a disconnected crowd inside the beltway is willing to give it another try with a broadband industry that is already a duopoly for most consumers.  Psychic abilities are not required to guess at the eventual outcome.

Update 12:30pm — The denials are flying over a NY Times piece that claims Google has agreed to pay Verizon’s asking price for prioritized traffic:

Google: “The New York Times is quite simply wrong. We have not had any conversations with Verizon about paying for carriage of Google traffic. We remain as committed as we always have been to an open internet.”

Verizon: “The NYT article regarding conversations between Google and Verizon is mistaken. It fundamentally misunderstands our purpose. As we said in our earlier FCC filing, our goal is an internet policy framework that ensures openness and accountability, and incorporates specific FCC authority, while maintaining investment and innovation. To suggest this is a business arrangement between our companies is entirely incorrect.”

Knology Buys Sunflower Broadband for $165 Million; Lawrence Journal-World Has a Messiah Moment

Phillip Dampier August 4, 2010 Consumer News, Data Caps, WOW! 1 Comment

Knology, a West Point, Georgia-based cable overbuilder, has acquired Sunflower Broadband in Lawrence (Douglas County), Kansas for $165 million cash.

Knology has been buying small, independent cable operators across the south and midwest to build its footprint and become a larger player in the heavily integrated cable television and broadband marketplace.

The company expects to acquire Sunflower partly from its own cash reserves and the balance from low interest loans.

Knology praised Sunflower Broadband’s advanced infrastructure — it has already deployed DOCSIS 3 broadband upgrades and uses a modernized hybrid fiber-coaxial cable network.  Sunflower spends between $8-9 million annually in capital expansion, a level comparable to Knology.

The purchase of Sunflower opens additional potential purchasing opportunities for Knology in the region to add other cable companies to its portfolio.

Lawrence residents were treated to gushing, emotional coverage of the sale in the pages of the Lawrence Journal-World this morning.  A sample:

In the beginning there was the vision. Forty-five years later, it was a spectacular reality. Today, the baton is being passed to a new owner.

One reader said the newspaper had a Messiah Complex.

Employees were informed this morning, but most will not know what impact, if any, will come from the sale until it closes in the fourth quarter of 2010.

The impact of the sale is drawing mixed reviews from Lawrence residents, some concerned about the loss of another locally-owned and operated business to an out-of-state “conglomerate,” while others believe the sale offers the potential for better service without irritating usage limits.

A Lawrence computer repair expert, “Dr. Dave” recognized the impact of Internet Overcharging schemes on Lawrence residents in a thorough analysis of the then-potential sale:

Sunflower stands apart from most Internet Service providers with its bandwidth caps. Knology and other suitors of Sunflower do not have these artificial limits. We’ll be free to use the internet at whatever speed we choose to pay for without fear of limits and overages. Online backups, security updates, and videos will be accessible without the worry of nasty additional fees.

Additionally, because our newspaper and television providers will be separated, the Journal World will be able to more accurately and fairly report news in Lawrence. No longer will they be limited by their vested interest in the cable company. Media consolidation is generally against FCC rules, but the loophole is that Sunflower is not seen as a “media” company. The loophole will be closed and growth of both companies will be natural and organic and both companies will be made stronger. We as citizens will trust the newspaper to accurately report the news and the Journal World will be restored to its role as watchdog for the citizens it serves. If the cable company isn’t acting in our best interest, I would trust the Journal World to report on it. Knology won’t be able to slack off and reduce the quality we’ve come to expect from Sunflower–the newspaper will see to that.

Knology claims it will get $5 million in “synergies” from the merger, much coming from volume discount programming purchases, a switch to Knology’s billing systems, and potential layoffs.  However, since Sunflower Broadband’s operating area does not overlap existing Knology service areas, the impact on jobs may prove limited.

One impact subscribers may not miss is the end of Sunflower’s Internet Overcharging schemes.  Sunflower is one of a handful of cable operators placing arbitrary limits on their customers’ broadband usage.  Usage caps, speed throttles, and overlimit fees are all imposed on Sunflower’s customers.

Knology has never imposed similar schemes on their customers.  Now may be a good time for Sunflower customers to let Knology management know they want an end to Sunflower’s profit-padding usage limits, especially considering AT&T U-verse, increasing competition in Lawrence, does not limit usage either.

Notorious Usage-Capping Sunflower Broadband Close to Sale to Knology; Caps Could Be History

Courtesy Ben Spark

The days may be numbered for Sunflower Broadband

A Kansas cable system notorious for Internet Overcharging is nearing a deal to be acquired by a cable overbuilder that does not usage cap broadband customers.

Sunflower Broadband, an independent cable system providing cable, phone, and broadband service to 30,000 Lawrence residents, is expected to be acquired by Georgia-based cable overbuilder Knology, which has been on a buying spree of late.  The asking price – $127 million dollars, according to a report in the cable trade journal Multichannel News.

Sunflower has been overcharging their broadband customers for years with schemes like usage caps and a flat rate service plan that delivers speed throttled broadband service to customers.  Sunflower has remained a hot topic for Stop the Cap! because we hear so many complaints from their long-suffering customers.  In fact, no independent cable operator has generated more reader complaints than Sunflower Broadband, almost all targeting the company’s unjustified usage caps.

Broadband Reports reminds us Sunflower was among the first to implement the idea of low caps and high overages ($2 for each additional gigabyte).  Customers also routinely complain about Sunflower’s stingy upstream speeds, maxed out at just 1Mbps for their $60 Gold tier.

None of the details about Sunflower Broadband’s impending sale can be found in the local newspaper — the Lawrence Journal-World or the local “Channel 6” news operation.  That’s ironic, considering the same parent company that owns Sunflower Broadband, The World Company, also happens to own the newspaper and Channel 6.  It took a cable trade publication based hundreds of miles away to break the story — not exactly a shining moment for journalism in Lawrence, especially considering an LJWorld reporter need not break a sweat to chase the story.

Part of the reason for the sale may have been AT&T bringing U-verse competition to Lawrence.  U-verse does not have customer unfriendly usage limits.  With AT&T ready to usher away many of Sunflower’s customers, management may have decided now was a good time to sell.

The good news for Lawrence residents is that none of Knology’s cable systems engage in Internet Overcharging schemes, so Sunflower’s usage caps may be gone after the sale.

Still, some Lawrence residents are concerned about the implications of a Knology takeover.  The Lawrence Broadband Observer is among them:

I browsed Knology’s corporate web site and was actually pretty unimpressed. To put it mildly, Knology is well behind Sunflower both geographically and technically. Knology offers service in rural areas much smaller then Lawrence, like Storm Lake, Iowa and Dothan, Alabama. They also offer service in a few towns that are equal or larger then Lawrence like Charleston, South Carolina.

Technically, Knology is well behind Sunflower in what they offer customers in other cities. Top internet speeds (albeit cap-free) are only in the 8-10 megabit range, five times slower then Sunflower’s new DOCSIS 3 offerings. On the television side, while it varies from city to city, Knology generally offers only 30 or so HD channels, which is less then half of what Sunflower offers. Knology offers a rudimentary DVR, but nothing like Sunflower’s multi-room options.

Perhaps Knology is interested in buying Sunflower to learn how to offer more advanced services, knowledge they can take to their other markets. I don’t know, but it seems like this is a case of a large buggy-whip manufacturer buying out a smaller company that makes automobiles.

Most of Knology’s network of systems have been acquired from other companies and providers.  Technically, they are a cable “overbuilder” because they do overlap other providers in some areas, such as Knoxville, Tenn., where they compete with Comcast.  In many communities, they are most common in rental parks and apartments.

Knology’s customers in other cities have usually suffered some transitional glitches (Knology uses a more “advanced e-mail system” they eventually forced their PrairieWave customers to join), but overall they have usually increased broadband speeds in their markets and add lots of new HD channels.  Knology is aggressively deploying DOCSIS 3, something Sunflower already has, so few changes should be expected there.  They do not have a history of downgrading customers.

Clues about the impact of a Knology buy can be found in communities like Rapid City, S.D., who saw their cable system switched from Black Hills FiberCom to PrairieWave to Knology.  Rapid City residents first saw changes to the cable system’s technology and billing.  That was followed by the introduction of new services and packages, and then finally the name change to Knology.

With the anticipated sale, existing Sunflower customers (and ex-customers) might want to impress on the new owner that Internet Overcharging schemes like usage caps and throttled speeds are unacceptable, and you want an immediate end to both.

Remember too it could be worse — Mediacom could have been the buyer.

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