If you are a Time Warner Cable “digital phone” customer living in New York or western Massachusetts, you can get a few dollars of your money back thanks to serious outages that have plagued the cable company for the past two weeks.

The worst problems occurred yesterday, when customers across the entire region couldn’t make or receive calls in many instances.

“My wife said it was like the whole system crashed,” reports Stop the Cap! reader Marcus, who lives near Syracuse.  “A lot of people here are very upset.”

Marcus reports he couldn’t even work around the outage by trying to set up call forwarding to send calls to his cell phone or another Voice Over IP provider.

“I tried to forward my Time Warner calls to a Vonage number I have and that didn’t work either,” Marcus writes.

We heard from several readers in Rochester, Albany, Syracuse, and even into western parts of Massachusetts that calling a Time Warner Cable customer from a cell phone or a landline from Verizon or Frontier was nearly impossible without getting a recording or busy signal.

Small business customers using Time Warner’s phone service were also impacted in some cases.

Lakeview Deli in Saranac Lake posted a message on its Facebook page just before noon, advising its customers to call in their lunch orders using a cell phone number because of the problems with its main phone line. Owner John Van Anden said he normally gets 30 to 40 calls around the lunch hour; he got only four on Tuesday.

“It hurt (business) quite a bit just because you can’t get phone calls from customers,” he said.

The outage, which lasted more than 12 hours, was reportedly finally fixed by the cable company last evening at around 11pm.  No explanation for the outage was given by Time Warner Cable.

This is the third major service problem for Time Warner’s phone service this month:

1. Time Warner misdirected 911 emergency service calls to a call center in Colorado;
2. Time Warner underestimated call volumes, leaving customers in central New York with “all circuits are busy” recordings or busy signals;
3. Yesterday’s collapse of Time Warner’s phone network.

“Wow, this is starting to make Frontier look good again,” says our Rochester reader Kevin.  “I’ll be dropping my phone service with the cable company when my promotion ends and sticking with my Verizon cell phone.”

With all of these service outages, you know what that means — it’s time to go grab those service credits.  Customers in central New York can apply for at least a week of service credits because of the ongoing problems the company faces handling call volumes.  Everyone else in the region with “Digital Phone” service qualifies for a day’s worth of credit.  But you won’t get it unless you ask.  We’ve made asking simple, with our cut and paste process:

Stop the Cap! Presents Your Easy Service Credit Request Menu

Customers in the northeast can request one day of credit for yesterday’s phone outage.  Residents in central New York, including Syracuse — can ask for one week of credit for ongoing call congestion problems.

Sample Request You Can Cut and Paste:

I am writing to request one day service credit for the phone service outage that occurred in my area yesterday, Tuesday Jan. 18th. Please credit my account.

[Central NY Residents ONLY]: I am writing to request a credit for one week of telephone service to cover the company’s ongoing intermittent call connection problems in our area as well as yesterday’s (Jan. 18) more widespread service disruption.  I am concerned about the repeated problems Time Warner seems to be having in correctly servicing my telephone needs.  Please credit my account.

Use the Online E-Mail form, select Billing Inquiry, and send a message requesting credit.

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WSYR-TV in Syracuse is spending plenty of time covering Time Warner’s phone outages and other problems.  Here’s the fourth report this month, covering yesterday’s widespread problem. (Warning: Loud Volume) (2 minutes)

Hours before a two-week extension on contract talks was set to expire, Time Warner Cable and Sinclair Broadcasting announced they had a deal to avert the loss of dozens of Sinclair-owned stations on Time Warner Cable.

No terms were disclosed, but industry watchers predicted Sinclair held the weaker hand and probably made some concessions to the cable company, especially on issues related to Time Warner’s focus on expanding cable programming to portable devices and allowing more shows to be “started over” or made available on-demand.

The length of the new agreement was also not disclosed, but many believe a 12-24 month extension was likely.

Time Warner Cable also negotiates programming deals on behalf of Bright House Networks, and a separate, similar agreement was anticipated to be reached sometime this week.

Despite hours of threatening video crawls on several Sinclair-owned stations and full page ads purchased in local newspapers by the cable company, no programming was ultimately impacted by the threatened blackout.

This most recent retransmission consent battle could be among the last if the Federal Communications Commission manages to write new rules to keep customers out of the middle of such disputes.

The FCC plans to consider drafting reforms to current regulations as early as next month.  The Commission seems to be leaning towards the cable, satellite, and phone companies’ view that would leave stations and networks on the cable dial while negotiations are underway, preventing the kinds of blackouts that left suburban New York Cablevision subscribers without access to Fox programming for two weeks in 2010.

Just a week after exposing serious insufficiencies in a 911 emergency services database, a report from a Syracuse, New York television station finds Time Warner Cable’s “Digital Phone” service has a new problem — incoming calls increasingly are not getting through.

Callers using Verizon, Frontier, or cell phone lines are getting recorded messages indicating “all circuits are busy” when trying to reach customers using the cable company’s Voice Over IP phone service.  Time Warner officials are well aware of the problem.

The cable company tells WSYR-TV the problem is on inbound calls only, and is being caused by an unusual spike in the volume of calls to the company’s customers.  When all incoming lines are in use, callers will hear a recorded message.

The company says it is working to expand incoming call capacity in the next week to ten days, and until then advises callers to simply keep trying — once another customer hangs up, a line will be available for your call.

Time Warner says they routinely expand call capacity based on predicted call volumes, but this winter the number of inbound calls went beyond expectations.  Time Warner bundles its “digital phone” service with cable and broadband packages, and has picked up a significant percentage of customers who have cut the cord of their traditional phone company.

[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/WSYR Syracuse Time Warner Cable Phone Problems 1-13-11.flv[/flv]

WSYR-TV in Syracuse covers Time Warner’s latest glitch — problems with their ‘Digital Phone’ service.  (Warning: Loud Volume) (2 minutes)

One of the biggest impediments to freeing up space on cable television systems is the amount of analog television programming viewers still watch over televisions not connected to set top boxes.  Time Warner Cable customers, already weary from paying $7 or more a month per television to rent digital boxes could eventually be in luck, if they own certain televisions made by Sony or Samsung.

The cable operator announced at this year’s Consumer Electronics Show it would begin testing delivering cable television directly to some television sets equipped to receive the Internet.

Time Warner Cable’s test of IPTV would deliver the cable lineup over its broadband network, which removes the need for an expensive and unsightly cable box.

Since the cable company would only deliver the channels customers were authorized to receive, boxes with complicated digital tuners and encryption schemes would be unnecessary.  For the first time in years, consumers could once again get the full cable lineup just by plugging a single cable into the back of their television.  No boxes, no TV set remotes rendered useless, no cableCARDs, and no more tangled cables behind the set.

The company could also eventually dump their DVR boxes, which require regular service to maintain and replace worn out hard drives.  The future of DVR’s is “cloud storage,” — your recordings would be stored at the cable company on their equipment, ready for on-demand access.

Could the days of the set top box be numbered?

The new IPTV service can also deliver advanced graphics and provide better on-screen programming guides, and even open up the potential to integrate Internet applications with the television experience.

IPTV already exists today with AT&T’s U-verse, which delivers all of its video programming over the same bandwidth their phone and broadband services rely on.  But U-verse still has a box attached to each television in the home.

Consumers could end up saving plenty if they got rid of expensive rented cable equipment.

But there are some downsides — the biggest being the currently limited number of televisions equipped to handle Time Warner’s proposed implementation of IPTV.

IPTV has often also opened the door to concerns from content producers about stream security — could a consumer capture perfect digital copies of movies over the cable company’s IPTV network?  And what happens politically if the cable company tries to deliver unlimited cable TV over the same broadband network it tried to limit in the past.

Cable providers and phone companies are trying to keep video subscribers happy in hopes they won’t drop service.  Comcast and Time Warner Cable both announced last week they are trying to build virtual cable systems that would deliver their channel lineups live to tablet computers, starting over home Wi-Fi networks.  Verizon and AT&T are also working on similar features.

In case you forgot, Time Warner Cable and Sinclair Broadcasting only agreed to extend talks for two weeks on reaching a long term retransmission consent agreement that will keep 33 Sinclair-owned stations on the cable lineup.

On Thursday night, the latest deadline will expire, and Time Warner Cable is signaling negotiations are continuing, but do not look too promising.

In a prepared statement, Time Warner says Sinclair has summarily rejected every offer and has repeatedly claimed to “terminate” negotiations over the past three months.

The cable company has spent part of the last two weeks arranging for alternative program feeds from all four major networks should negotiations end without a final agreement.  That could be an important distinction for customers, most of whom watch Sinclair stations primarily for network programming.

“We will provide all available Big 4 network programming in the event that Sinclair takes away its signals,” said Rob Marcus, President and COO of Time Warner Cable. “We want our customers to remember that we’re fighting hard to contain the rising costs of broadcast programming. We are also still working to reach a long-term agreement with Sinclair before our current contract ends tomorrow night, and in fact discussions between the Time Warner Cable programming team and Sinclair have taken place as recently as this morning and are ongoing.”

But the two are still trading barbs.  As recently as today, the two were debating about how many customers would be impacted by a loss of the Sinclair signals.

The cable company said Sinclair was “inaccurately portraying” the number of impacted customers.

“Time Warner Cable has approximately 4 million customers who receive local broadcast stations owned by Sinclair Broadcasting,” a cable company statement said.