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Time Warner Cable to Ex-Subscribers: We’re Sorry, Please Take Us Back

Phillip Dampier January 22, 2013 Broadband Speed, Competition, Consumer News, Video 7 Comments

twcTime Warner Cable is sending apology letters to former customers acknowledging the company’s cable service has not always lived up to expectations, but improvements have been made that ex-subscribers should consider.

The effort is part of a $50 million marketing campaign that will push a 30-day money back guarantee and claims their competitors’ promised savings have not materialized.

“The Better Guarantee”-campaign will target customers who have dropped the cable operator in favor of competitors that include AT&T U-verse and Verizon FiOS.

better guaranteeAlthough both AT&T and Verizon offer attractive introductory rates, Time Warner Cable says the savings disappear after the promotion expires. The company’s new ad campaign will attempt to entice customers back with offers of lower rates, a $200 reward card, and better service, including faster broadband speeds and new products like online apps for video streaming and home security services.

The New York Times reports the campaign was announced one week before the cable operator releases its latest fourth quarter earnings, which may show a growing number of customers canceling their cable television service. Jeffries & Company forecast Time Warner will report 140,000 subscribers lost during the last quarter, up from 129,000 in the same quarter of 2011.

Customers are invited to sample Time Warner’s offerings for 30 days. If they don’t like the service, the company will send their money back.

That may not be enough. The American Consumer Satisfaction Index has top-rated Verizon FiOS for three years in a row. Time Warner Cable received a below average, but improving rating.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/TWC The Better Guarantee 1-21-13.flv[/flv]

Time Warner Cable’s new television ad promoting its “Better Guarantee.”  (1 minute)

Rep. Eshoo Reintroducing Wireless Speed Disclosure Bill GOP, Carriers Will Consider DOA

Phillip Dampier January 16, 2013 Broadband Speed, Competition, Data Caps, Public Policy & Gov't, Wireless Broadband Comments Off on Rep. Eshoo Reintroducing Wireless Speed Disclosure Bill GOP, Carriers Will Consider DOA
Eshoo

Eshoo

Rep. Anna Eshoo (D-Calif.), the ranking member on the House Energy and Commerce Communications Subcommittee, will shortly reintroduce legislation that will require wireless companies to disclose more information about the anticipated speeds of their 4G wireless networks.

Eshoo announced her legislative intentions Tuesday at the Broadband Breakfast Club, telling attendees it was important for consumers to know what they are getting before signing a two-year contract.

The anticipated legislation is expected to mirror Eshoo’s 2011 bill — the Next Generation Wireless Disclosure Act (HR 2281), which never made it out of the Republican-dominated House committee.

Eshoo said consumers need clear and concise explanations of data limits, caps, or network management policies that can turn a fast 4G connection into a very slow or expensive one.

Many of the former bill’s supporters echoed carriers use “4G” as a marketing tool which can lead to consumer confusion. Networks ranging from Clearwire’s WiMAX service to T-Mobile’s HSPA+ to Verizon Wireless’ LTE network have all been dubbed “4G,” despite offering widely varying maximum speeds.

Consumers have also faced bill shock when they do not understand their monthly data limits.

Like the last bill, Eshoo’s newest effort is expected to face stiff opposition from wireless carriers and House Republicans, but may raise the temperature on data caps at the Federal Communications Commission, which has faced increasing pressure to become more involved in the issue of usage limits and consumption pricing.

Leapfrogging Ahead: China Mandates Fiber Network Connections for All New Homes

Phillip Dampier January 16, 2013 Broadband Speed, Competition, Editorial & Site News, Public Policy & Gov't, Rural Broadband, Wireless Broadband Comments Off on Leapfrogging Ahead: China Mandates Fiber Network Connections for All New Homes

unicom All new homes must be equipped with fiber broadband connections if they are located in a county or city where fiber service is provided, according to a new mandate from China’s Ministry of Industry and Information Technology.

The Chinese government has learned turning over national broadband policy to self-regulating providers reluctant to invest in super-fast broadband service is a mistake other countries will pay for dearly as they fall behind in broadband rankings and digital opportunities only available to the broadband “well-connected.”

Now the government has taken measures to level the playing field for ordinary consumers and businesses who will share the right to equal service from various telecommunications companies over the country’s state-of-the-art fiber to the premises network.

The mandate takes effect April 1, and is anticipated to bring explosive growth in domestic fiber broadband, according to the China Daily.

With an open fiber network, expensive network redundancy and cherry-picking lucrative customers are reduced or eliminated, allowing the country to deploy fiber more rapidly in areas providers would typically deem “unprofitable.”

The new fiber policy will mean at least 40 million Chinese homes will have fiber broadband by 2015. China Unicom (Hong Kong) Ltd., the nation’s second largest telecom company, is among the most aggressive providers, adding 10 million Chinese families to its fiber network in the last year alone.

The bare minimum fiber speeds for Chinese families will be 4Mbps in rural areas, 20Mbps in urban zones, with 95 percent of the country blanketed with broadband within a few years.

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The Chinese government’s broadband plan is laser-focused on fiber optics, with satellite and wireless service filling in rural coverage gaps. The country sees 21st century broadband as a national priority and is well on its way even as North American broadband companies are pulling back on fiber deployments. Instead, American and Canadian companies are incrementally upgrading inferior copper wire and cable HFC broadband networks. The Chinese government does not believe these older technologies will suffice.

Optical fiber manufacturers who assumed telecom companies in North America would continue aggressive fiber deployments and ramped up optical fiber production as a result have taken a financial beating, slashing prices to reduce inventory. The price for fiber cable has dropped at least 90 percent in the past decade. The Chinese government has even resorted to tariffs to stop American and European manufacturers from dumping fiber cables and equipment at rock bottom prices to the detriment of its domestic manufacturers.

China remains the largest driver in global fiber demand. In 2011, China accounted for about 50% of the global demand, reaching nearly 60 percent by the end of 2012.

Time Warner Cable Introduces 75Mbps Service in Dallas Metroplex

Phillip Dampier January 15, 2013 Broadband Speed, Competition 1 Comment

twcTime Warner Cable has soft-launched a new Ultimate speed tier offering 75/5Mbps service in the Dallas metro area, first to Signature Home customers promised free upgrades to the new speed.

That is 25Mbps faster than the company’s usual top speed, for $10 more than Ultimate 50 customers pay.

Dallas customers report Time Warner is offering some promotional pricing on speed upgrades, charging $79.99 for 50/5Mbps service, $89.99 for 75/5Mbps, and 30/5Mbps for $59.99. These prices are good for one year. Existing customers who cajole customer service about committing to a speed upgrade in return for a better price are achieving some success.

“We do have a 75Mbps tier in Dallas and a 100Mbps tier in Kansas City, both of which are part of our larger announcement on speed increases,” Time Warner Cable’s Alex Dudley tells Broadband Reports. “As far as those two tiers are concerned, we don’t have anything else to announce, though I think it is fair to say that we have been making an effort to increase speeds and will continue to do so in the future.”

In other words, expect a gradual rollout of speeds greater than 50Mbps in other cities across Time Warner’s footprint, particularly in areas where competitors cut into Time Warner’s market share.

Upstream speeds continue to be no greater than 5Mbps across all of Time Warner’s DOCSIS 3 speed tiers.

AT&T provides limited U-verse competition in the region, but their speeds are not competitive with Time Warner’s latest speed upgrades.

Time Warner Cable's speed tiers and priced differently in various regions of the country. This shows pricing and speeds in upstate N.Y.

Time Warner Cable’s speed tiers and priced differently in various regions of the country. This shows pricing and speeds in upstate N.Y.

CenturyLink Concedes Publicly-Owned Broadband Networks Offer Better Service Than They Do

CenturyLinkA CenturyLink official made a remarkable concession in the state of Minnesota last week when he admitted the state’s community-owned broadband networks are better equipped to deliver 21st century broadband speeds that CenturyLink simply cannot provide.

Duane Ring, midwest region president for CenturyLink publicly told an audience at a Minnesota High Tech Association-sponsored discussion in Minneapolis that community-owned networks don’t have to meet shareholder demands for return on investment and other corporate metrics that have left CenturyLink broadband customers with far lower speeds than municipal broadband customers. Minnesota Public Radio was on hand:

Noting that CenturyLink wants every customer it can find, Ring pointed out that the company nonetheless needs a return on investment that satisfies shareholders and meets the demands of larger commitments and fiduciary responsibilities.

The small phone companies that have laid high-speed fiber networks, some of whom are cooperatives whose customers are the owners “can make decisions that maybe the economic return is 25 years,” Ring said. “They can do that.”

CenturyLink admits they offer better speeds over a superior network.

CenturyLink concedes Paul Bunyan offers better speeds over a superior network.

Only 62 percent of Minnesotans can today purchase what qualifies as broadband service. Those lucky enough to be served by public providers like Paul Bunyan in the Bemidji area and Farmers Mutual Telephone in western Minnesota benefit from some of the fastest broadband speeds in the state. That is because those cooperatives and public ventures laid fiber optic cables connected to individual homes. Those in rural Minnesota served by CenturyLink or Frontier get much less from slow speed, copper-based DSL, if they can get broadband at all.

CenturyLink has proven itself an obstacle for community broadband, opposing the construction of improved networks in areas they already service, condemning rural customers to substandard broadband speeds indefinitely. While the company says it is not opposed to public-private partnerships, any attempt to bypass them will result in a hornet’s nest of legal protests and blocking actions.

While community-owned networks struggle for financing and approval in a hostile atmosphere created by incumbent providers, the government is handing out money to companies like CenturyLink to get them to extend their slow speed DSL network. CenturyLink is spending $11 million in Connect America funds in Minnesota alone.

In other areas, residents have no interest in waiting around for single digit DSL speeds. In Lac qui Parle County in western Minnesota, local officials have joined Farmers Mutual Telephone to build a fiber network.

CenturyLink’s admission proves it answers first to shareholders, much later to customers.

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