Waxman

An e-mail message from a lobbyist employed by Time Warner Cable has dragged the cable company into the middle of the partisan dispute over the merits of the Patient Protection and Affordable Care Act, better known as “Obamacare.”

Rep. Henry Waxman (D-Calif.), the ranking member of the House Energy and Commerce Committee obtained a copy of an e-mail message sent by the cable lobbyist to House and Senate Republicans:

“Next time you think about helping the broadcasters – particularly the networks – read this. . . .”

The e-mail contained a link to an article in the conservative Weekly Standard titled, “NBC Launches Week of Programming to ‘Help’ Obamacare Succeed.”

The incident did not amuse Waxman, who promptly fired a letter off to Time Warner Cable CEO Glenn Britt:

Mr. Glenn A. Britt
Chairman and Chief Executive Officer
Time Warner Cable
60 Columbus Circle
New York, NY 10023

Dear Mr. Britt:

I recently obtained an email that one of Time Warner Cable’s lobbyists sent to Republican staff in the House and Senate.  The email says, “next time you think about helping the broadcasters – particularly the networks – read this. . . .”  Immediately below his message, your lobbyist pasted a link to an article in The Weekly Standard titled “NBC Launches Week of Programming to ‘Help’ Obamacare Succeed.”   I have attached a copy of the email.

Could you please explain why this email was sent and what purpose it serves?

A broadcaster has a public service obligation and should be informing viewers about the new options for health coverage under the Affordable Care Act.

On the other hand, a cable company should not be pandering to the worst instincts of the reckless Republican extremists that seem to be running the House of Representatives.

Sincerely,

Henry A. Waxman
Ranking Member

Time Warner Cable will spend $600 million in cash for Duke Energy Corporation’s 8,700 mile fiber network currently serving wireless carriers, government, business, and data center customers.

DukeNet, based in Charlotte, N.C., is a partnership between the electric utility and an investment fund owned by Alina Capital Partners. Duke Energy shed the network as part of its new business strategy refocusing on the energy sector. Time Warner Cable intends to use the fiber network to bolster its regional fiber backbone and offer enhanced fiber connectivity to its business customers.

“Business services is a key growth area for Time Warner Cable and this acquisition will greatly enhance our already growing fiber network to better serve customers, particularly those in key markets in the Carolinas,” said Phil Meeks, executive vice president and chief operating officer of Business Services for Time Warner Cable. “This acquisition will help us expand our fiber footprint at a price that is consistent with our disciplined approach to mergers and acquisitions.”

Last month, DukeNet announced it provided fiber backhaul service to more than 3,500 cell towers across North and South Carolina, Tennessee, Georgia and Alabama.

Time Warner Cable has focused much of its investment activity in expanding and enhancing services sold to commercial clients.

The acquisition follows Time Warner Cable’s $230 million purchase of NaviSite, Inc., a 2011 deal that also brought it more business customers.

Hawaiian non-profit customers of Time Warner Cable are receiving letters warning the cable company is terminating its discount program for charitable and community groups that could result in rates more than doubling for some customers.

Oceanic Time Warner Cable had provided free or heavily discounted cable or Internet service to qualifying organizations. Those discounts are ending, explains a letter obtained by Pacific Business News.

Time Warner Cable has adopted new policies regarding discounted or free service in light of IRS regulations that require 1099 forms to formalize the value of discounts or forgiven cable bills. The cable company is using the occasion to review its discount programs – ending some while tightening requirements for others.

“If we do not receive a reply from you within 30 days of this notice to update your account, it will be necessary for us to disconnect your existing services,” the letter explained.

Becky Dunning, managing director for the non-profit Honolulu Theatre for Youth called Time Warner to learn what “update your account” meant.

“The biggest thing is that when I called the number I was told that they aren’t offering discounted rates to nonprofits anymore, and that we’d have to pay their existing business rates; for our organization that means we would go from paying $106 a month to $227, which is a big difference — more than double,” Dunning said. “We can’t exist without Internet service.”

Dunning said the group would probably stay with Time Warner and attempt to make up the difference from somewhere in the organization’s budget.

Malone

So far Dr. John Malone isn’t getting very far with his ambitious plan to merge Charter Communications and Time Warner Cable into a single cable company, but that has not stopped him from trying.

GDP Insider reports Malone is quietly keeping the pressure on Time Warner Cable management to do a deal with Charter. Malone controls a substantial interest in Charter Communications.

Liberty Media, a holding company controlled by Malone, is spearheading the courtship under the direction of Greg Maffei, Liberty’s CEO. It’s a tall task, considering Time Warner Cable is a larger company than Charter.

Both men are betting they will get a friendlier reception after current CEO Glenn Britt retires at the end of the year.

TWC’s new chief financial officer, Artie Minson, isn’t exactly rebuffing Malone and Maffei.  Minson said that in the event of an acquisition or merger deal, the company will consider taking on more debt to help finance the transaction.

Many Charter shareholders are unconvinced such a deal is worth the amount of debt likely required to finance it, especially as cable television subscriber numbers continue to erode and the rate of new broadband sign ups has peaked.

Malone has argued a combined Charter-Time Warner Cable could realize savings in cable and broadcast retransmission fees through volume discounts.

If you thought waiting three days for a service call was too long, you haven’t talked with Tod Robberson, editorial writer for the Dallas Morning News. AT&T has scheduled his U-verse installation 23 years from now.

Robberson has been buried in AT&T promotional mailings pushing its U-verse fiber to the neighborhood service he was ready to sign up for two years ago, but wasn’t yet available in his neighborhood. Dozens of mailings arriving this summer indicated that finally changed and he was ready to see the back of Time Warner Cable:

I phoned one day after receiving my first notice. I signed up immediately for service. The friendly sales person told me because of high demand, she couldn’t set an installation date for sooner than two weeks. Whatever. Fine. We agreed on August 19, somewhere between 9 and 11 a.m. I couldn’t wait.

Then, on August 16, they called with bad news. They needed to delay the installation for another week. Big disappointment, but I could live with it, I thought.

A week later, they called again and said there was another delay. The lines in my area needed “conditioning.” Each week since then, I’ve received a call from an AT&T person telling me about the conditioning problem. I finally offered to get out my own bottle of conditioner and do it myself. They didn’t get the joke.

Finally, today, I escalated. I talked to Gilbert in Complaints. Gilbert the Problem Solver. He heard me out. I told Gilbert that AT&T had me at hello. I was just dying to get U-verse and was very frustrated that no one at AT&T would listen. I could swear he even giggled a little when I made the “bottle of conditioner” joke. Then he did some checking around and told me that, well, truth be told, I could be waiting another year before they got around to installing my service. That’s right, one year.

Turns out that Gilbert was optimistic. I went online today with AT&T just to make sure I didn’t misread the notice I got from AT&T. Did they really tell me that service was now available? Well, I couldn’t have signed up if it wasn’t. AT&T’s system is set up to block you if your neighborhood isn’t ready.

But now, the “due date” on my installation has changed. It reads: 12/31/2036.

Dallas is home to the headquarters of AT&T and was an early adopter of U-verse. But AT&T has won the right under state law to decide when and where it chooses to deploy the service, leaving a large number of Dallas residents waiting since its introduction in 2010.

For the foreseeable future, Robberson’s tree-infested, satellite-unfriendly neighborhood is stuck with one choice for pay television and broadband: Time Warner Cable.