Cahill

A New York assemblyman is telling his upstate constituents to stop wasting money on Time Warner Cable’s monthly broadband modem equipment fee and buy your own device.

“I want consumers to know that they do not have to waste their hard-earned money on a product which was considered free for years,” said Assemblyman Kevin Cahill (D-Kingston) in a statement to members of his district. “Over the course of a year or two, depending on the model, the purchase of a new modem will pay for itself. Additionally, the models for purchase have more features than leased modems, like faster speeds and the capability to handle unlimited wireless devices.”

Time Warner expects less than three percent of its customers will take Cahill’s advice and avoid the $3.95 monthly fee, which opens a new, lucrative revenue stream for a cable operator that already enjoys up to 95 percent gross margin on its broadband service.

Cahill complained the 1996 U.S. Telecom Act prohibits the state’s Public Service Commission from intervening, but reminded customers there is a joint New York-New Jersey class action lawsuit against the cable operator over how the modem fee was implemented.

As of Jan. 14, Time Warner Cable has approved the following modems-for-purchase that can be activated for use with its broadband service, with our recommendations in red:

Telecom door fees and other accommodations are often illegal under New York State law.

More details are emerging over Verizon’s complaint to the New York Public Service Commission after the company was refused entry to several New York multi-dwelling buildings to restore phone service after Hurricane Sandy and upgrade tenants to the company’s fiber optic network FiOS.

The New York Times reports the management blockade of telecom companies is nothing new. In some instances, landlords even expect to receive compensation for unlocking the front door for Verizon and Time Warner Cable, despite the fact it is illegal.

Verizon spokesman John Bonomo declined to tell the newspaper how much landlords are asking, but cable industry executives tell stories of building owners demanding as much as $150 per apartment in what they call “door fees.”

Verizon noted DSA Management, the company that takes care of 11 Maiden Lane, has asked for compensation. Theoretically, if DSA requested the same amount, it would run more than $10,000.

A DSA Management executive claims tenants in the building never lost phone service because of the storm and had no interest in the additional services Verizon FiOS had to offer. But a Stop the Cap! reader living in one of the impacted buildings shared a very different story with us.

“My phone has not worked right since even before Sandy hit,” shares a reader who wishes to remain anonymous to avoid possible retaliation. “You can get a dial tone but you also get to hear half of Manhattan when you make a phone call. I can’t hear myself over the other conversations. Verizon has let their copper network go to crap.”

The reader says Verizon is aware of the problem and a trouble ticket is open, and the company indicated it was having trouble arranging access to fix the problem.

“I want FiOS yesterday. I guess some of these building owners already have it and will let us have it if the kickback is finally high enough. Time Warner Cable comes and goes whenever they like.”

Bonomo told the Times Verizon has paid “nominal fees” to building owners before, ostensibly to post fliers and set up sales tables in the lobby.

In some states, renters don’t have much of a choice. Cable operators have been known to sign lucrative deals with property owners to sign everyone in the complex up for cable, bundling the monthly bill into rent payments or mandatory fees. Customers can refuse the service, but they will still pay for it.

Some building owners claim they have a natural hesitancy allowing telecom companies into their buildings because they do not always take care to hide their work or avoid inconveniencing tenants with noise or damage.

TF Cornerstone says Verizon should not be in a hurry to effect repairs at 2 Gold Street or 201 Pearl Street. Both luxury high-rises have been uninhabitable since Sandy struck and until heat, hot water, and electricity is back, FiOS can wait, they say.

A one-way street or Avoidant personality disorder?

Back in July we noticed Time Warner Cable’s Conversations website, engaged in two-way conversations with customers, began a “dialogue” on the issue of its new 5GB usage-capped “Internet Essentials” plan first unveiled in several Texas cities.

The company provided its view that broadband innovation required pricing flexibility with new usage-based broadband plans to offer customers “more choice” and a $5 discount on service if they agreed to limit monthly usage to 5GB or less.

Despite sharing our two cents (and several of our readers tried to add their own as well), we noted none of these views ever appeared online.

This week we checked back and discovered the dialogue had decidedly turned one-way: namely from Time Warner Cable to you. The company deleted the few views that were published on cable television programming costs and removed its comment section altogether.

Our reader Kevin even tried to be generous in his comments to the company last summer, but to no avail.

“I basically told them if usage meter billing is inevitable, then give us no less than 300 GB a month, at a rate of $40 a month,” he wrote. “Seeing how 1 GB of bandwidth and data costs you less than $1 to generate to me, this is more than fair. Doubt they will even read it since it isn’t a ‘wow this is awesome, OMG i luv you so much for this new plan TWC’-message.”

They might have read it, but elected to avoid the uncomfortable notion of sharing the actual costs to provide broadband service to customers. It is not the first time, either.

The Roku set top streaming device.

The days of renting expensive set top boxes from Time Warner Cable may finally be coming to an end, at least if you happen to subscribe to the cable company’s broadband service.

Time Warner Cable this week announced a new partnership with Roku that will bring 300 Time Warner Cable channels to the video streaming device.

Time Warner Cable customers who also own Roku devices will soon find a TWC “channel” on the menu, from which subscribers can access the same streamed content found on the cable company’s viewing apps for iOS and Android devices. The service represents true IPTV television — an all digital experience streamed over Time Warner Cable’s broadband service.

Customers only have to pay for the Roku device, which ranges from $50-100. Lower priced units do not deliver a true HD viewing experience. Higher priced models support 1080p viewing and support additional features like motion control for games and external USB and Ethernet ports. Time Warner Cable currently limits HD viewing to 480p on its streaming apps, so a cheaper unit may suffice for secondary television sets.

Roku boxes also offer cable customers other viewing options apart from Time Warner Cable, including independent networks, games, movie channels, foreign language and ethnic programming, religious entertainment, global news, and a variety of self-produced and public access programming from cities around the country. Roku boxes also support Netflix and Amazon Video on Demand.

But there are a few downsides, at least for the moment. Local broadcast channels are not currently available except in New York City, but that is expected to change soon. Recording programming delivered over a Roku box is not easily possible, and viewing will reduce available bandwidth on your broadband connection.

Considering Time Warner now charges just shy of $8.50 a month for each set top box, switching to Roku will pay for itself in as little as six months. Time Warner Cable expects most customers will consider the streaming device for televisions in bedrooms and guest rooms.

Saratoga, Calif.-based Roku has had a blockbuster year, doubling the number of its employees and approaching five million units sold. Last year, consumers watched more than one billion hours of television over Roku devices.

[flv width=”534″ height=”320″]http://www.phillipdampier.com/video/NY1 TWC and Roku 1-8-13.mp4[/flv]

Time Warner Cable’s NY1 reports on the Roku-Time Warner partnership that will let customers stream the cable company’s lineup without a traditional set top box. (1 minute)

Time Warner Cable announced late last week it would add 650 call center jobs in South Carolina in 2013.

Most of the new positions will be in Lexington County at a newly expanded call center in West Columbia.

The company said it was increasing telephone sales and support positions by 50 percent in the state and would make a $24 million investment in its operations this year.

Gov. Nikki Haley said Time Warner Cable chose South Carolina for its business-friendly climate.

“The ultimate celebration in South Carolina is when a company expands,” Haley said at an event announcing the expansion. “It’s the biggest compliment to a county, it’s the biggest compliment to a state because it shows that there is true commitment in taking care of the businesses that we already have.”

In July, Haley further demonstrated that commitment by signing a bill promoted by Time Warner Cable and other telecommunications companies that would make it next to impossible for communities to construct and operate their own broadband networks in a state woefully underserved by the cable company and AT&T.

As Christopher Mitchell from Community Broadband Networks points out, the new law is corporate welfare at its finest, requiring local governments to avoid undercutting the rates charged by incumbent phone and cable companies, even if the government could provide the service at reduced cost.

“It effectively prohibits municipalities from operating their own broadband systems through a series of regulatory and reporting requirements,” said Catharine Rice, president of the SouthEastAssociation of Telecommunications Officers and Advisors (SEATOA). “These practically guarantee municipalities could never find financing because the requirements would render even a private sector broadband company inoperable.”

The majority of the new jobs are expected to start at salaries under $40,000 a year. In May, Frontier Communications opened its own call center in Horry County that pays much lower salaries than the call centers it replaced.

In separate announcements, Time Warner Cable noted it planned to “consolidate” call center positions in other locations, which means employees in other cities and states will either lose their jobs or accept invitations to transfer to other facilities, potentially for lower pay.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/WLTX Columbia 650 New Jobs in SC At TWC 1-4-13.flv[/flv]

WLTX in Columbia favorably reports Time Warner Cable’s forthcoming hiring spree in their area.  (2 minutes)