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Time Warner Cable Launches Maxx Upgrades in Dallas Metroplex; Launching Metrowide Wi-Fi for Its Customers

twc maxxTime Warner Cable customers in the Dallas Metroplex will soon see broadband speeds rise as high as 300Mbps as the company’s Maxx upgrade project arrives, bringing along a metropolitan-wide Wi-Fi network available at no charge to Time Warner Cable broadband customers.

The first noticeable presence of the Wi-Fi expansion will be found at area businesses as Time Warner recruits commercial broadband customers to host its hotspots. As spring arrives, the company will accelerate the installation of Wi-Fi antennas around the metropolitan region.

Home Maxx upgrades will deliver dramatically faster broadband speeds at no extra charge:

  • Standard 15Mbps service rises to 50/5Mbps;
  • Turbo is boosted from 20Mbps to 100/10Mbps;
  • Extreme increases from 30/5 to 200/20Mbps;
  • Ultimate, formerly 50/5 is increased to 300/20Mbps.

Existing customers will also be able to swap out their existing DVR boxes for a new Arris Enhanced DVR offering six tuners and a 1TB internal drive.

Because the conversion will drop analog channels, Time Warner Cable is offering free Digital Transport Adapters through April 21, 2016, as long as customers order the boxes by Aug 19. Many Time Warner Cable customers may end up avoiding charges for the DTA equipment even after that. Several packages from Time Warner waive the DTA fees.

The official list of metro Dallas locations getting the Maxx upgrade includes:

Addison, Allen, Arlington, Bedford, Carrollton, Cedar Hill, Cockrell Hill, Colleyville, Commerce, Coppell, Dallas, DeSoto, Double Oak, Euless, Farmers Branch, Farmersville, Flower Mound, Frisco, Garland, Grand Prairie, Grapevine, Greenville, Highland Village, Hutchins, Irving, Kennedale, Lancaster, Lewisville, McKinney, Mesquite, Murphy, Pantego, Plano, Princeton, Richardson, Rockwall, Rowlett, Sachse, St. Paul, Sunnyvale, The Colony and Wylie.

Dallas faces imminent competition from AT&T U-verse upgrades.

Wall Street Turning Against Comcast-Time Warner Merger: “We Believe It Will Be Blocked”

Greenfield

Greenfield

An important Wall Street analyst has publicly written what many have thought offline for the past six months — the chances of regulators approving a merger of Comcast and Time Warner Cable are growing less and less each day that passes.

Rich Greenfield from BTIG Research has grown increasingly pessimistic about the odds of Comcast winning approval of its effort to buy Time Warner Cable.

Despite the unified view from the executive suites of both cable companies that the merger is a done-deal just waiting for pro forma paperwork to get handled by the FCC and Department of Justice, Greenfield has seen enough evidence to declare “the tide has turned against the cable monopoly in the past 12 months,” and now places the odds of a merger approval at 30 percent or less.

“Since we realized the inevitability of Title II regulation of broadband in December 2014, we have grown increasingly concerned that Comcast and Time Warner Cable will not be allowed to merge,” Greenfield wrote.

The claim from both cable companies that since Comcast and Time Warner Cable do not directly compete with each other, there in no basis on which the government could block the transaction, may become a moot point.

There are three factors that Greenfield believes will likely deliver a death-blow to the deal:

  • Monopsony Power
  • Broadband Market Share & Control
  • Aftershocks from the Net Neutrality Debate

btigMonopsony power is wielded when one very large buyer of a product or service becomes so important to the seller, it can dictate its own terms and win deals that no other competitor can secure for itself.

Comcast is already the nation’s largest cable operator. Time Warner Cable is second largest. One would have to combine most of the rest of the nation’s cable companies to create a force equally important to cable programming networks.

As Stop the Cap! testified last summer before the Public Service Commission in New York, allowing a merger of Comcast and Time Warner Cable would secure the combined cable company volume discounts on cable programming that no other competitor could negotiate for itself. That would deter competition by preventing start-ups from entering the cable television marketplace because they would be at a severe disadvantage with higher wholesale programming expenses that would probably make their retail prices uncompetitive.

Even worse, large national cable programming distributors could dictate terms on what kinds of programming was available.

comcastbuy_400_241The FCC recognized the danger of monopsony market power and in the 1990s set a 30% maximum market share limit on the number of video customers one company could control nationally. That number was set slightly above the national market share held by the largest cable company at the time — first known as TCI, then AT&T Broadband, and today Comcast. Comcast sued the FCC claiming the cap was unconstitutional and won twice – first in 2001 when a federal court dismissed the rule as arbitrary and again in 2009 when it threw out the FCC’s revised effort.

Comcast itself recognized the 30% cap as an important bellwether for regulators watching the concentration of market power through mergers and acquisitions. When it agreed to buy Time Warner Cable, it volunteered to spin-off enough customers of the combined company to stay under the 30% (now voluntary) cap.

Greenfield argues the importance of concentration in the video programming marketplace has been overtaken by concerns about broadband.

“While Comcast tried to steer the government to evaluate the Time Warner deal on the old paradigm of video subscriber share, it is increasingly clear that DOJ and FCC approval/denial will come down to how they view the competitive landscape of broadband and whether greater broadband market share serves the public interest,” Greenfield wrote.

comcast whoppersIf the Comcast merger deal ultimately fails, the company may have only itself to blame.

Last year Comcast faced intense scrutiny over its interconnection agreements with companies that handle traffic for large content producers like Netflix. Comcast customers faced a deterioration in Netflix streaming quality after Comcast refused to upgrade certain connections to keep up with growing demand. Netflix was eventually forced to establish a direct paid connection agreement with the cable operator, despite the fact Netflix offers cable operators free equipment and connections for just that purpose.

That event poured gasoline on the smoldering debate over Net Neutrality and helped fuel support for a strong Open Internet policy that would give the FCC authority to check connection agreements and ban paid online fast lanes.

Seeing how Comcast affected broadband service for millions of subscribers across dozens of states could shift the debate away from any local impacts of the merger and refocus it on how many broadband customers across the country a single company should manage.

Comcast will control 50% or more of the national broadband market when applying the FCC’s newly defined definition of broadband: 25/3Mbps.

That rings antitrust and anticompetitive alarm bells for any regulator.

Greenfield notes that changing the definition of broadband will dramatically reshape market share. It will nearly eliminate DSL as a suitable competitor and leave Americans with a choice between cable broadband and Verizon FiOS, community owned fiber networks, Google, and a small part of AT&T’s U-verse footprint. If those competitors don’t exist in your community, you will have no choice at all.

cap comcastEven Comcast admits cable broadband enjoys a near-monopoly at 25/3Mbps speeds. controlling 89.7% of the market as of December 2013.

“If regulators take the ‘national’ approach to evaluating broadband competition, the FCC’s redefinition would appear to put the deal in even greater jeopardy,” Greenfield writes. “Beyond the market share of existing subscribers, the larger issue is availability.  Whether or not a current subscriber takes 25/3Mbps or better, the far more relevant question is if a consumer wanted that level of speed do they have a choice beyond their local cable operator?  As of year-end 2013, Comcast’s own filing illustrates that in 63% of their footprint post-Time Warner Cable, they were the only consumer choice for 25 Mbps broadband (we suspect even higher now).”

“With Comcast’s scale both before and especially after the Time Warner Cable transaction, they become ‘the only way’ for a majority of Americans to receive content/programming that requires a robust broadband connection,” Greenfield warned.

Even worse, to protect its video business, a super-sized Comcast will be tempted to introduce usage caps that will deliver a built-in advantage to its own services.

“Over time, the fear is that Comcast will favor its own IP-delivered video services versus third parties, similar to how it is able to offer Comcast IP-based video services as a ‘managed’ service that does not count against bandwidth caps, while third-party video services that look similar count against bandwidth caps,” he wrote. “The natural inclination will be for [Comcast] to protect their business (think usage based caps that only apply to outsiders, peering/interconnection fees, etc.)”

“With the overlay of the populist uprising driving government policy, it is hard to imagine how regulators could approve the Comcast Time Warner Cable transaction at this point,” Greenfield concludes. “Comcast continues to try to get the government to look to the past to get its deal approved.  But the framework is about not only what is current, but what the future will look like – especially in a rapidly changing broadband world.”

FCC Now Defines Minimum Broadband Speed at 25Mbps; Everything Less Is Now “Slowband”

speedThe Federal Communications Commission, over loud objections from America’s largest cable and phone companies, has raised the minimum speed necessary to qualify as “broadband” from 4/1Mbps to 25/3Mbps.

Broadband deployment in the United States – especially in rural areas – is failing to keep pace with today’s advanced, high-quality voice, data, graphics and video offerings, according to the 2015 Broadband Progress Report adopted by the Federal Communications Commission.

Reflecting advances in technology, market offerings by broadband providers and consumer demand, the FCC updated its broadband benchmark speeds to 25 megabits per second (Mbps) for downloads and 3 Mbps for uploads. The 4 Mbps/1 Mbps standard set in 2010 is dated and inadequate for evaluating whether advanced broadband is being deployed to all Americans in a timely way, the FCC found.

Wheeler

Wheeler

Using this updated service benchmark, the 2015 report finds that 55 million Americans – 17 percent of the population – lack access to advanced broadband. Moreover, a significant digital divide remains between urban and rural America: Over half of all rural Americans lack access to 25 Mbps/3 Mbps service.

“The FCC doesn’t just have a statutory obligation to report on the status of broadband deployment; we have a duty to take immediate action if we assess that the goal of deployment to all Americans is not being met,” said FCC chairman Thomas Wheeler. “And act we have.”

The 3-2 party line vote left the FCC’s two Republican commissioners Ajit Pay and Michael O’Rielly siding with the telecom industry.

Commissioner Pai even accused the FCC of aiding and abetting the Obama Administration’s larger plan to regulate the Internet.

“The ultimate goal is to seize new, virtually limitless authority to regulate the broadband marketplace,” Pai wrote in his dissent. “Under its interpretation of section 706 of the Telecommunications Act, the FCC can do that only by determining that broadband is not ‘being deployed to all Americans in a reasonable and timely fashion’ or, more colloquially, by ignoring the consistent progress in Internet connectivity that’s obvious to anyone with a digital connection and an analog pulse.”

Pai

Pai

Pai called the FCC decision “Kafkaesque,” claiming the agency’s recent activist approach on issues like broadband speed, Net Neutrality, and managing wireless spectrum to guarantee robust competition will result in cuts in broadband investment, raise the cost of deployment, and deter competition.

Pai believes the FCC is erecting barriers that will delay or even stop Verizon and AT&T’s plans to ditch rural landline service through a proposed transition to IP-based phone service in urban communities and wireless-only service in rural areas. He also complained about efforts by the FCC to regulate the Internet like a public utility, claiming “that is not what the American consumer wants or deserves.”

But Commissioner Jessica Rosenworcel countered maintaining the status quo and allowing the marketplace to set the agenda risks our digital future.

“I, for one, am tired of dreaming small; It’s time to dream big,” Rosenworcel said. “This is the country that put a man on the moon. We invented the Internet. We can do audacious things—if we set big goals. I think our new threshold should be 100Mbps. I think anything short of that shortchanges our children, our future, and our digital economy. I don’t think reaching a benchmark like this is easy—but nothing worthwhile ever is. Still, the history of technological innovation is rife with examples of the great depths of American known-how. It is time to put that know-how to work and use it to bring really big broadband everywhere.”

The FCC’s changed definition of what constitutes broadband could also have an impact on the current merger deal involving Comcast and Time Warner Cable now before the FCC and state regulators.

COMCAST-MILLIONAIREWith the new definition in place, Comcast’s monopoly control of broadband service becomes more clear as fewer phone companies are able to meet the minimum speed standard to qualify as broadband competitors. Comcast will now control about 50% of all broadband homes in the country, a percentage that could reach even higher if Comcast revamps Time Warner Cable’s broadband tiers.

The report also highlights a growing digital divide on Tribal lands, in U.S. territories, and in schools. At least two-thirds of residents lack access to broadband on Native American reservations and in U.S. possessions including Puerto Rico, Guam, the Northern Marianas, U. S. Virgin Islands and American Samoa. More than one-third of all schools in the United States lack access to fiber broadband connections.

Key findings include the following:

  • 17 percent of all Americans (55 million people) lack access to 25/3 Mbps service;
  • 53 percent of rural Americans (22 million people) lack access to 25/3 Mbps;
  • By contrast, only 8 percent of urban Americans lack access to 25/3 Mbps broadband;
  • Rural America continues to be underserved at all speeds: 20 percent lack access even to service at 4/1 Mbps, down only 1 percent from 2011, and 31 percent lack access to 10/1 Mbps, down only 4 percent from 2011;
  • 63 percent of Americans living on Tribal lands (2.5 million people) lack access to 25/3 Mbps broadband;
  • 85 percent living in rural areas of Tribal lands (1.7 million people) lack access;
  • 63 percent of Americans living in U.S. territories (2.6 million people) lack access to 25/3Mbps broadband;
  • 79 percent of those living in rural territorial areas (880,000 people) lack access;
  • Overall, the gap in availability of broadband at 25/3Mbps closed by only 3 percentage points last year, from 20% lacking access in 2012 to 17% in 2013.

Stop Paying Regular Price for HBO and Cinemax; Cancel and Rebuy for $10/Month

2000px-HBO_logo.svgAre you still paying $15+ for HBO and $13+ for Cinemax? Stop.

Most major cable television providers are slashing the price for both premium movie channels to protect subscriber numbers from the April introduction of HBO’s standalone video streaming service, likely to be called HBO Go.

Most analysts expect the on-demand service will cost $15 a month for one or both co-owned networks. With Time Warner Cable recently raising the price of HBO to $16.99 a month, the company may have priced itself out of the market.

“Why would I waste my time with HBO from Time Warner Cable when I will be able to get HBO Go for $2 less a month and won’t have to buy their larded-up cable television package,” asks Watertown, N.Y. resident Jeff Kates. “Their greed will cost them when they lose more subscribers than they gain in revenue from the rate hike.”

Comcast has already seen the writing on the wall and this year cut its regular pricing for HBO from $18.95 to $15 — matching the likely price of standalone HBO Go.

In an effort to lock in customer loyalty and avoid accelerating cord-cutting, many major pay television providers are putting one or both Time Warner (Entertainment)-owned networks on sale for much of 2015. These prices are available to any new premium cable subscriber. If your provider will not switch your current subscription to the new promotional rate, cancel one or both channels for a few days (or threaten to cancel service altogether) and then resubscribe at the discounted price.

Here are the current offers:

  • AT&T U-verse: Bundles HBO and a year of Amazon Prime service with a package of mostly local over the air channels for around $40-50 a month depending on the promotion;
  • Charter Cable: Charter’s Triple Play Silver package bundles HBO, Cinemax, Showtime/Movie Channel premium channels into the television package at no extra charge;
  • Comcast: Offers HBO for online sign ups at $10 a month for a year. Comcast attempts to limit the offer to customers who have not subscribed to HBO for the last 120 days, but this condition is usually waived if you threaten to cancel service and switch to a phone or satellite company;
  • Cox: Stingier than others, Cox is offering discounts for just six months, but gives you quantity discounts. Buy 1 premium channel at $10/mo, two channels for $15, three for $20 or four networks for $25 a month. Your choices include HBO, Cinemax, Showtime, and Starz;
  • Time Warner Cable: Now has a sale running for $9.99/mo HBO and the same rate for Cinemax, Showtime, and Starz when ordered online. Current non-premium customers can upgrade from the My Account portal. Current premium channel customers will have to call Time Warner and argue for the discount or cancel HBO and quickly resubscribe;
  • Verizon: Also offers HBO and others at $9.99/mo for the first year.

Satellite services are expected to change their pricing on premium channels sometime this month.

Comcast Retaliates: Customers Who Cancel/Downgrade Service Are Called ‘Whore,’ ‘B*tch,’ ‘A**hole,’ and Worse

comcast sucksThat paragon of virtue Comcast is back in the news again with yet another customer service horror story.

After Americans once again rated Comcast one of the most-hated corporation in America, employees are launching the equivalent of a “right back at you” retaliation campaign aimed at departing and downgrading customers with name-calling we cannot print on Stop the Cap!

It all started with Lisa Brown, a volunteer for a missions organization in Spokane, Wash., who told Elliot.org Comcast retaliated against her husband for daring to downsize his Comcast cable package. Brown said her husband’s name Ricardo was changed to “A**hole” on their bill. She tried in vain to get the unauthorized name change corrected, but nobody made things right in the local cable office or in Comcast’s executive customer relations department.

When a reporter called Comcast to confirm the profane name change, alarm bells rang as Comcast realized it had the latest PR Disaster of the Month on its hands.

Steve Kipp, Comcast’s vice president of communications in the Washington State region was shocked, shocked to discover customer service abuse was going on inside Comcast offices. He must not have worked there back in 2005 when the cable company called one woman a “b*tch dog” on her bill.

“We have spoken with our customer and apologized for this completely unacceptable and inappropriate name change,” Kipp told Elliot.org. “We have zero tolerance for this type of disrespectful behavior and are conducting a thorough investigation to determine what happened. We are working with our customer to make this right and will take appropriate steps to prevent this from happening again.”

Comcast eventually refunded back 24 months of cable service to the Brown family.

Screen-Shot-2015-01-28-at-1.38.47-PM

Notice Comcast charges a $9.50 “administrative late fee” on all accounts that are past due more than 10-14 days after the billing due date. Customers who do not clear their earlier balance to zero may be subject to this fee indefinitely with each billing statement.

Zero tolerance lasted about five minutes before more complaints began pouring in from other Comcast customers who have also been on the receiving end of Comcast’s wrath:

  • One customer said a Comcast employee changed his name to the phonetic spelling of the “f word,” unprintable on this website;
  • Julie Swano reported her December 2014 Comcast bill was addressed to “Whore” Julia Swano;
  • Carolina Heredia: “They changed my name to ‘dummy’ on my online account, so that the greeting was ‘Hello, dummy,’” she said.
whore_julia

Notice Comcast customers who want a paper bill pay $5 more each month than those who accept eBills. Comcast customers complain “EcoBill” offers illusory savings, because for many the $5 “credit” was applied to bills that were also $5 higher than before. (Click image to read complaints)

Comcast’s Tom Karinshak, senior vice president of customer service, treated the incidents as some type of computer glitch or honest mistake.

“We’re retraining our teams on the importance of making name changes properly,” Karinshak said. “We’re looking for automated solutions to prevent this from happening in the future.”

“What amazed me then was that I had talked with at least 20 people at Comcast between Dec. 16 and Jan. 6 who could see that my name was ‘whore’ and they did nothing about it,” Swano said.

But once the matter went viral and could influence regulators contemplating Comcast’s buyout of Time Warner Cable, Comcast got serious enough to write about the incident on its blog.

“We have apologized to our customer for this unacceptable situation and addressed it directly with the employee who will no longer be working on behalf of Comcast,” wrote Charlie Herrin, senior vice president of customer experience.

Swano does not believe it is an isolated incident.

“I have no record of any recent contact with Comcast until Dec. 16. So whoever chose to re-name me picked my account out of a hat,” she said. “That says there are probably millions of us out there who Comcast employees have renamed. We need to find all of them.”

The American Customer Satisfaction Index pegged Time Warner Cable as the nation’s most unloved company in 2014, with its Internet service rated 236th out of 236 companies in customer satisfaction, and its TV service rated 235th. Comcast Corp.’s Xfinity Internet service placed 234th out of 236 and its TV service landed at 232 in the list released in May.

[flv]http://www.phillipdampier.com/video/CNN Another Comcast customer-service gaffe 2-1-15.flv[/flv]

CNN talks with the customer Comcast called an “a**hole” on their bill after the family dared to downgrade their cable service. (1:53)

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