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Verizon Wireless Brings Big Changes to “Unlimited” Data Plans; Throttled Video for All

All Verizon Wireless customers, regardless of their data plan, will begin seeing throttled video on their phones, tablets, and tethered devices starting today, Aug. 23.

The change coincides with the introduction of two new “unlimited” data plans that come with an unprecedented number of tricks and traps in the fine print.

Existing customers can keep their current plan, but will still experience throttled online video speeds to at or below 10Mbps that will make it impossible to view 4K streamed video. On smartphones, the top permitted video resolution will be substantially lower than that.

Verizon claims the new throttled video plans will deliver better service for all of their wireless customers.

“We’re doing this to ensure all customers have a great experience on our network since there is no visible difference in quality on a smartphone or tablet when video is shown at higher resolutions,” a Verizon spokesperson claimed. That refers to video resolution above 720p for phones and 1080p on tablets and laptops.

More likely, Verizon engineers observed video traffic spiking as a result of its unlimited data plan reintroduced in February. Independent speed measurement services detected significant speed and performance hits on Verizon’s wireless network as customers got the most they could out of an unlimited plan that started at $80 a line. Even with Verizon’s soft cap of 22GB before customers were subject to throttled performance was not enough to manage traffic loads, so Verizon has decided to specifically target online video.

Verizon’s “Cadillac” network is straining to keep up.

Although many streaming services offer customers an option to reduce video resolution to cut back on data usage, customers often ignore the option, particularly if enrolled in “unlimited” data plans. Starting today, Verizon’s network management speed throttle tells streaming services a customer’s connection is limited and cannot sustain the speeds needed for the highest resolution video. The video player reduces video playback resolution on its own as a result. In turn, this can dramatically lighten the traffic load on Verizon’s network.

Verizon’s new plans seem designed for the “light touch” era the current administration’s FCC advocates for telecom regulation, and the carrier’s new plans will give blatant priority for some customers over others, relegating lower paying users into the slow lane while premium plan customers can race on by.

Verizon’s new unlimited data plans for the Net Neutrality-free future are here, scoff critics.

“‘Unlimited’ = ‘Limited’ and ‘Beyond Unlimited’ = ‘Slightly less limited’,” wrote one customer on Verizon’s customer forum.

Verizon put its best face on its new unlimited plans.

“These plans give you the best unlimited choices, but you also get what only Verizon can give you: the best network, the best rewards program, the best way to manage your plan with the My Verizon app and the best selection of phones and devices,” the company said in a press release.

“If this isn’t a sign that Verizon’s network is crumbling from offering unlimited, I don’t know what is!” countered John Legere, CEO of T-Mobile USA.

Here are the new unlimited plans from Verizon Wireless, effective immediately:

Go Unlimited – $75 (1 line), $65 per line (2 lines), $50 per line (3 lines), $40 per line (4+ lines) – Paperless billing and autopay required (or add $5 per month)

Verizon’s new base unlimited plan automatically throttles your speed when a cell site reports as congested. This plan puts your data usage at a lower priority over other customers and you can experience throttled speeds at any time, regardless of usage. Video streaming is limited to 480p on smartphones and 720p on all other devices. You also get unlimited mobile hotspot, but speeds are permanently locked at a maximum of 600kbps. Unlimited talk and text with no restrictions is included

Beyond Unlimited – $85 (1 line), $80 per line (2 lines), $60 per line (3 lines), $50 per line (4+ lines) – Paperless billing and autopay required (or add $5 per month)

This plan more closely resembles the current unlimited data plan, but costs considerably more. You get unlimited 4G LTE data, but are subject to a speed throttle in congested service areas once exceeding 22GB of usage per month. Video streaming is limited to 720p on smartphones and 1080p on all other devices. No 4K video on any device is allowed. Unlimited mobile hotspot data really means up to 15GB of usage at LTE speed before you are throttled. Unlimited talk/texting included in the U.S., Canada, and Mexico.

Customers on 2017 Unlimited and Legacy Unlimited Data Plans:

You will be able to keep your current unlimited plans. For those who enrolled in Verizon’s 2017 unlimited plan starting in February, video speed throttles now apply: 720p on smartphones, 1080p on all other devices. You will get a free upgrade to 15GB of mobile hotspot usage, up from 10GB.

For customers on Verizon’s original unlimited plan discontinued several years ago, nothing changes except the introduction of video speed throttles: 720p on smartphones, 1080p on all other devices.

Charter’s “Spectrum Internet Assist” is Cable-Style “Charity” With Tricks and Traps

Warren (center) pictured with representatives of Charter Communications and PowerMyLearning (Photo courtesy of: PowerMyLearning)

The incumbent mayor of Rochester, N.Y., currently up for re-election, has decided to take indirect credit for a low-cost internet program loaded with tricks and traps from a cable company that is worsening the affordable internet problem in the United States.

Mayor Lovely Warren made the head-slapping mistake of teaming up with Charter Communications, already on track to being even more universally despised by its customers than its immediate predecessor Time Warner Cable. Casting political instincts to the wind, Warren decided to team up with an unpopular cable company that is gouging its regular customers while offering a token “low-cost” internet program designed to protect Charter’s internet profits more than offering low-income customers a break.

WHAM-TV:

New low-cost, high-speed broadband Internet service is being launched in Rochester, Mayor Lovely Warren announced Thursday.

PowerMyLearning and Charter Communications announced Spectrum Internet Assist (SIA) would offer the service to eligible low-income household customers in Rochester.

Broadband speeds of 30/4 Mbps are being offered for $14.99 per month by SIA, according to Mayor Warren.

“Lowering the cost barrier to Internet access for families is essential if we are to close the digital divide and help them rise out of poverty,” said Mayor Warren. “Internet access is increasingly essential for students to do homework, for jobs seekers to research and apply for jobs, pay bills and remain connected with society.”

We agree with the mayor that lowering the cost barrier is critical to making essential internet service available to every resident. Unfortunately, Charter Communications is making the problem worse, not better. Charter’s idea of charity doesn’t seem so magnanimous when you read the fine print.

Charter’s solution for affordable internet: Charge most customers more while a select few jump through hoops for a discount.

First, Spectrum Internet Assist is highly discriminatory and only available to families with school age children that qualify for the National School Lunch Program. Don’t have kids? Tough luck. When they leave school, no more affordable internet for you!

Second, if you are a senior citizen on a fixed income, you probably already have 20+ years under your belt dealing with relentless rate increases from the local cable company. Unless you are 65 or over and receive SSI benefits, you’ll keep on paying those rate increases because the only thing Charter has on offer for you is a bigger bill.

Third, and the most egregious insult of all to the most vulnerable members of our society is Charter’s cynical fear its fat internet profits will be cannibalized if they simply lowered the bills of customers that would otherwise qualify for this program. Spectrum Internet Assist is for new customers only (and if you are still on a Time Warner Cable plan, you aren’t a new customer).

Charter refuses to relent on its policy requiring current customers to disconnect internet service for a month before they can qualify for Charter’s “charity.” The company is worried it will lose money from customers downgrading to Spectrum Internet Assist who will pay a lot less for internet access. To prevent that, Charter makes the process of enrolling as difficult and inconvenient as possible. Imagine if RG&E or National Grid demanded poor residents go without heat for 30 days before qualifying for heating assistance or if your elderly grandparents had to disconnect telephone service for a month before qualifying for Lifeline.

While obsessing about whether its poorest customers are taking ‘unfair’ advantage of a money-saving deal, Charter has no problem splurging on fat bonuses and compensation packages for its top executives. In fact, the highest paid CEO in the United States in 2016 was Thomas Rutledge, top dog at Charter Communications, rewarded with a splendid $98.5 million compensation package for finding new ways to charge consumers even more for cable service. Charter can certainly afford to lighten up on its customers. Instead, it seeks to live up to the cable industry’s usual reputation of a modern-day reboot of Oliver Twist, this time starring Rutledge as Fagin. Since Warren wholeheartedly endorses Charter’s paltry efforts for the poor, perhaps residents can call her up and ask why they should be forced off the internet for a month just to qualify for Charter’s “charity.” Or maybe not, considering the fact she had nothing to do with Spectrum Internet Assist beyond having her picture taken at a press event.

As is too often the case, uninformed politicians are quick to take credit for programs they don’t understand and are nowhere to be found when the real problem-solving and hard work needs to be done. How can we say that? Because we were a registered and very involved party in the New York Public Service Commission’s review of the Charter-Time Warner Cable merger deal. Mayor Warren wasn’t. We fought for pro-consumer benefits if such a deal was to be approved. Mayor Warren didn’t. We understood from long experience the cynicism that separates the cable industry’s lofty words from its fine print. She doesn’t.

Spectrum Internet Assist does very little to resolve the problem of internet affordability. The program is a close cousin of Comcast’s much-criticized Internet Essentials program, which has similar eligibility requirements and has proven cumbersome to sign up for and leaves too many eligible families behind because of its onerous signup requirements. In 2016, Comcast itself admitted that since 2011 it has only enrolled 750,000 low-income households in its discounted internet program, although more than 2.6 million families were eligible to sign-up but never did.

Charter makes internet affordability worse.

Our research shows that Charter’s token efforts for the few are more than canceled out by the rate increases and reduced options made available to the rest of its customers.

Time Warner Cable used to offer lower-cost internet plans.

Time Warner Cable used to sell six different internet plans ranging from $14.99 to $64.99 for new customers (and practically anyone who ever complained about their cable bill) or $14.99 to $109.99 if you were in the tiny minority of customers who didn’t either bundle service or ask for a promotion. Charter Communications argues it is “better” for consumers to simplify Time Warner’s “complicated” plans and pricing with a one-size-fits-all alternative — 60Mbps for what sells today for $64.99 a month (they raised the price $5 a month back in February). But at least you won’t pay that modem rental fee (if you didn’t bother to avoid it by buying your own cable modem that would have paid for itself long ago.)

So which company makes internet affordability a bigger problem — Time Warner Cable, which sold less expensive internet service at prices of $14.99, $29.99, and $34.99, or Charter Communications which advertises only one internet plan on its website for much of western New York – 60Mbps for $64.99 ($44.99 if you are new to Charter and not a previous Time Warner Cable customer that still has cable service). Spectrum’s plan is more than four times more expensive than Time Warner Cable’s previously well-advertised $14.99 plan.

Regular TWC broadband-only pricing in 2016.

No organization worked harder than Stop the Cap! to keep Time Warner Cable’s $14.99 Everyday Low Price Internet tier as a condition of the merger. While not fast, it is affordable and available to every customer, not just the small percentage that will eventually manage to qualify for Spectrum Internet Assist. Fortunately, New York’s Public Service Commission agreed with us and insisted that option remain available in New York State for the next several years. But Charter has subsequently made that plan almost invisible, removing all mention of it from its website, telling some customers it was not available, and leaving a distinct impression they don’t want customers to sign up.

Charter’s one-size-fits all plan got more expensive in February.

The reason is simple. Revenue cannibalization. Thomas Rutledge has repeatedly stressed to Wall Street investors he intended to end the “Turkish bazaar” of Time Warner Cable’s former cavalcade of plans and promotions. When a customer called Time Warner to complain about their bill, there was always room for negotiation and a better deal. Customers calling Charter looking for a break are hitting a brick wall with “take it or leave it” pricing, and tens of thousands of customers are “leaving it” and Charter behind. In this area, we don’t have that luxury because the alternative is usually Frontier Communications’ dreadful DSL service, which almost never meets the FCC’s definition of broadband — at least 25Mbps.

To give you an idea of just how rapacious Charter’s broadband pricing is, consider local upstart competitor Greenlight, which offers fiber to the home service to a very small number of neighborhoods predominately on the east side of the Genesee River. It charges a no-nonsense $50 a month for 100Mbps internet — $15 less than what Charter charges for 60Mbps. If you want gigabit speed, Greenlight will sell you 1,000Mbps for $100 a month, which is $5 less than Charter’s unadvertised 100Mbps offer ($104.95/mo with a mandatory $199 setup fee). Ten times the speed for less. No wonder their Facebook page is filled with people begging them to expand.

Rochester, like other cities in the upstate region, continues to fall behind with inadequate and costly internet service, insufficient competition, and no sign of gigabit speeds arriving anytime soon, unless you are lucky enough to live in a Greenlight service area. Those kinds of 21st century internet speeds are years away if we continue to depend on the local cable and phone company.

Phillip Dampier: We can afford to do without Charter’s “charity.”

In the local mayor’s race, one candidate seems to understand this problem and has a credible solution that fixes it. Rachel Barnhart has a long history of advocating for a citywide public fiber broadband network that would wire every home in the city for an estimated $70 million. The costs would be shared by city residents, the Rochester City School District, and at least one private vendor that would likely be responsible for administering day-to-day operations.

“About forty percent of homes in the city – 35,000 households —  don’t have high-speed internet via cable or DSL,” Barnhart said. “Some of those households can only access the internet via smartphones. The Rochester City School District has estimated half of its students don’t have broadband at home.”

City taxpayers have already paid for a underutilized institutional dark fiber network. Barnhart proposes putting that network to work for the community, selling competitively priced gigabit service for residential and business customers that would effectively subsidize free, slower-speed service for the less-fortunate. Is it expensive? Perhaps. But is it out of line when one considers in one local suburb this year, taxpayers will spend $1 million dollars on a single traffic light and minor road widening project to better manage traffic. Considering how many communities need digital highway traffic improvements, this kind of investment is hardly audacious and isn’t just about giving people fast internet. Managing the local digital economy with the right infrastructure is essential in a community that has seen the loss of tens of thousands of manufacturing jobs and has been economically challenged for years. The alternative is what we have now — watching a mayor impotently smile at a manufactured press event declaring victory while the near-cable monopoly local residents have for broadband service throws *-laden scraps at the public and calls it a day.

Rochester, and other communities that are enduring a cable company that is rapidly turning out to be worse than Time Warner Cable, cannot afford Charter’s “generosity.”

Politicians would do well to remember the sage advice we’ve given consumers since 2008. When a cable company claims they have a better deal for you, watch your wallet. For Mayor Warren, she will have to learn the same lesson we taught city councilman Adam McFadden and Assemblyman Joe Morelle. With friends like Charter/Spectrum or Comcast, you don’t need any enemies.

2016 Edition: Fighting for a Better Deal from Time Warner Cable; Save $600+ Annually

badbillFor the fourth year, Stop the Cap! is pleased to bring you our advice on how to win yourself a better deal from Time Warner Cable. If you are paying regular price for Time Warner Cable service, you are throwing money away. There is no award for being a loyal cable customer these days. Only new customers and those willing to demand a better price get the best deals, while everyone else pays astoundingly high rates.

We are rarely surprised by anything, but even we confess astonishment as customers continue to show us their $180-250 cable bills. Most have been customers for decades and have never bothered to ask Time Warner if they could be getting a better deal. They should have asked us because the answer is absolutely yes. If you can devote about one hour a year and are willing to do some homework, even those coming off a promotion can save hundreds of dollars a year and get better service.

For those accustomed to badgering the cable company for a better deal year after year, we have some troubling news. Time Warner Cable is making things harder for you. In years past, customers only needed to use social media like Twitter or Facebook and ask for a better price and the cable company usually called back with a great promotional offer for the next year. Those days ended last fall, when the company began channeling current customer promotions almost exclusively through its national customer retention call centers. Even the oldest method of all — showing up at a local cable store with boxes in tow ready to turn in as you threaten to cancel service over its cost today often results in a shrug of the shoulders and an admission cable store employees are increasingly unable to offer customers promotions to entice them to stay. We saw this ourselves this week. As a result, Time Warner Cable lost that customer on the spot.

So why do cable companies play this game with their customers year after year? In a word, it’s all about the money. At least 80% of Time Warner Cable customers are still paying the company $10 a month to rent a cable modem customers can buy for themselves for as little as $50. Why do they keep paying? Because it’s a hassle or the customer believes they are incapable of installing their own. Even those who fought and won up to $1,100 in savings last year procrastinate after that promotion expires and put off trying to renew it. Why? Because few people relish debating for discounts. It’s a chore. But you say the same thing about doing your taxes, so it’s time to get some discipline and get this done. We’re even going to walk you through the process and share the tricks and traps you are likely to encounter along the way and how to get past them. How do we know? We have Time Warner Cable service too.

Heads Up: Time Warner Cable & Charter Communications — You may have read that Charter Communications is in the process of acquiring Time Warner Cable. Most state regulators with the exception of California (where approval isn’t a done deal at the time of writing) have approved the sale and federal regulators seem likely to follow, with a number of conditions Charter will have to meet going forward. For the rest of 2016, even if the deal is approved, we don’t expect many immediate changes. You are likely to see the Time Warner Cable name, packages, and pricing remain the same for most of this year. Next year, we expect Charter will want to retire Time Warner’s name and packages and move customers to their Spectrum product suite, at new customer pricing for all for the first year. We will update readers as needed to explain the transition, but it should not affect any promotions you win for at least the next year.

Getting Ready to Deal

courtesy: abcnews

Time to cut the cable TV bill down to size.

Based on reader input and our own experiences, you are going to find Time Warner Cable less willing to volunteer their lowest price promotions as they have in the past. Customer retention call center workers are trained to try to keep your business without giving away too much to customers threatening to leave. That is why doing your homework is essential before you call.

The most common reasons people call threatening to cancel service are:

  • a poor service experience
  • a rate increase or the end of a promotion that results in a higher rate
  • a better deal from the competition

When you call to cancel service, a representative will seek to understand your reasons and attempt to save you as a customer. If you respond you don’t like the picture quality or your Internet is constantly going out, you are unlikely to get a promotion. You’ll be offered a one-time service credit and a repair visit. If you are calling to cancel over a rate hike notice, they will probably offer a tepid promotion that effectively wipes out the rate increase, but still leaves you paying a lot more than you should. The best offers are designed in response to marketing from competitors trying to steal you away as a customer.

Doing Your Homework

This year your key word is: UPGRADED. Your local phone company just notified your neighborhood better service and a better deal is now available.

This year’s key word is: UPGRADED. Your local phone company just notified your neighborhood better service and a better deal is now available.

We believe the best deals will go to customers prepared to bring a competitor’s offer for them to match. If Time Warner’s local competitors are Google Fiber or Verizon FiOS, you are probably going to get a great deal without a lot of effort. In the northeast, Verizon FiOS and Time Warner Cable have had to face the fact if a customer of either doesn’t get an excellent deal to stay, they are going to switch to the other for one or two years and then switch back after the promotion expires. We’ve seen retention offers in these areas that even include high value gift card rebate offers normally reserved exclusively for customers able to prove (with their final bill) they are leaving one provider for the other. In areas where Time Warner Cable competes with AT&T U-verse, negotiations can get tougher. Time Warner Cable retention operators will listen to your claim you can get a better deal from AT&T or DirecTV and then try to trip you up by asking a lot of questions about 1-2 year contracts, HD fees, set-top equipment fees, broadband speeds, and other sneaky fees AT&T loves to slap on their bills but not always disclose in their advertising.

Things can get even tougher if their only significant competitor is Frontier Communications, HawTel, Windstream, CenturyLink, or other independent telephone companies. Most customers still can’t get TV service except through a companion offer with a satellite company and broadband typically comes in the form of underwhelming DSL. Time Warner Cable has a database of their competitors’ promotions and packages, and they respond to your price match request by trying to find the offer you want them to match in their system. When they find it (or something close to it), the call center operator will respond with a series of challenging statements to cut the apparent value of that promotion. For example, they will claim the competing offer does not include certain features Time Warner includes at no extra charge or doesn’t include various equipment, programming and other hidden fees that raise the price.

If you concede this, the price they will ultimately match is likely to be higher than what you originally thought. It may even sound reasonable to you, because you are used to “gotcha” and hidden fees that are already on your current Time Warner bill (fees the retention operator usually “forgets” to mention Time Warner also charges when they claim to be making an “apple to apple” comparison of the two offers.) That’s their game and it is designed to confuse and overwhelm you. We are going to teach you how to avoid getting on board their carnival carousel.

The key word for 2016 is: UPGRADED, as in their competitor ‘just notified you they have upgraded your neighborhood to a better level of service with a great limited time, local promotion just for customers like you.’

As AT&T and other phone companies continue to upgrade their networks to deliver video, phone and better broadband service, you can shut down the debate about DSL broadband speed and the many deficiencies of telephone company partnerships with satellite TV providers. Instead, you will explain the phone company can now match the speed Time Warner is selling (or at least the speed you need), and with services like Frontier FiOS TV/Vantage TV, CenturyLink’s Prism, Hawtel’s TV, and Windstream’s Kinetic TV, you don’t need a satellite dish to watch anymore.

A Time Warner Cable call center.

A Time Warner Cable call center.

But before we begin negotiations, a review of what you are already paying for is in order. Go and grab your latest Time Warner Cable bill.

If you are a broadband-only customer, you’ve probably received many offers to add television service. Those with cable television and broadband may be getting cards in the mail offering to add phone service for an additional $10 a month. Those customers identified as likely premium movie channel subscribers are getting offers to add multiple premiums at a special price. This practice is known as upselling, and it is how your $150 cable bill quickly rose to well over $200 once those limited-time promotions end and regular prices begin.

Here are some common cable TV add-ons that may be still lurking on your bill, are optional and may be removed on request:

  • Variety Pass (a/k/a Preferred TV): Just over 60 channels of lesser-known and slightly more expensive cable networks and their cousins. Includes MTV, Aspire, Cooking Channel, FOX Sports, Crime and Investigation Channel, GSN, LOGO, and National Geographic, among dozens of others. This package is very common and can often be downgraded to a 70+ Standard TV package.
  • HD Pass: Usually 4-6 channels of uniquely expensive basic cable networks. Most customers probably added this during the days of HDNet — a network Time Warner Cable dropped several years ago. Today, you are probably paying $3-5 a month extra for networks like beIN SPORTS, MGM HD, RFD HD, and Smithsonian. If these don’t interest you, drop this add-on.
  • TWC Sports Pass: More than two dozen additional sports channels that come at a hefty price. If you need to get your cable TV bill down, this is a good place to start.
  • TWC Movie Pass: Once affordable, this package of Disney Family Movies On Demand, TWC Movie Pass On Demand, and at least eight Encore movie channels has seen steady rate increases, especially over the last three years. It may no longer be worth it.
  • Various Premium Channels: HBO alone now costs $16.99 a month. Other premiums have also seen prices rise these last few years. But for $20-30 more, depending on the promotion, you can have every premium channel for a year, usually including HBO, Cinemax, Showtime, The Movie Channel, Epix, and Starz. Don’t leave your money on their table.
The TWC Digital Adapter was supposed to cost $0.99 a month. It's now $3.25.

The TWC Digital Adapter was supposed to cost $0.99 a month. It’s now $3.25.

With the latest round of rate hikes, renting equipment from Time Warner has gotten more expensive than ever. Do you still need a traditional set-top box in the guest bedroom or kids’ rooms if they are not even interested in cable TV? Each box and remote can add up to $7-9 a month depending on your package. DVR service is also increasingly costly because Time Warner charges customers for both the equipment and the service. An enhanced DVR capable of recording up to six shows at once is a nice addition, but it can easily add over $20 a month to your bill in equipment and service fees. If you find you aren’t using the DVR as often as you used to, it may be time to switch back to a traditional set-top box, which costs much less.

If you have TVs in spare bedrooms or the kitchen hooked up with Time Warner’s Digital Adapters, you will find the price for those has also increased dramatically. Initially promised for $0.99 a month, they now cost $3.25 each. This year, we recommend returning them and buying one or more Roku 2 2015 Edition ($70) units instead, which can deliver cable TV to your spare TV sets over your home Wi-Fi. (Also available on: Roku 3, All Roku 2 Models, Roku LT, Roku HD (2500X), the Roku Streaming Stick, Kindle Fire HD & HDX, Samsung Smart TV, Xbox 360 and Xbox One.) Time Warner provides their lineup on these devices with a free app. A one time equipment purchase will pay for itself in a few years, give instant access to Hulu, Netflix, and other services and offer a less frustrating experience.

Cable modems are another piece of equipment you should not be renting from Time Warner. These devices work with your Internet service and now cost $10 a month. The top recommended Arris (formerly Motorola) SB-6141 can be purchased on eBay for around $50 (for refurbished units) and from retail outlets for $70-80 (new). If you are still renting a modem from Time Warner, go and buy one today.

Am I Getting a Good Deal?

While tempting, these offers usually require upgrades that raise the price. For example, Whole House DVR mandatory service and equipment fees add $11.75 a month per cable box, with at least two boxes required.

While tempting, these typical Time Warner Cable offers usually require upgrades that raise the price. For example, Whole House DVR mandatory service and equipment fees add $11.75 a month per cable box, with a two-box minimum. That gift card offer is only good if you are able to prove you are switching from another provider and can produce a copy of your final bill.

This is the part people dread the most — having to haggle over their cable bill. How do you know if the offer Time Warner gives you is a good one? The answer is: by comparing it against the competition and what Time Warner would charge new customers for the same services. If it is within that range, you’ve done okay. If you keep pushing far beyond that, you are likely to find diminishing returns and increasing aggravation – sometimes an offer promised on the phone never even makes it to your bill, because it was offered in error. Then it becomes a dispute over crediting the difference between an offer promised and one actually received. We also don’t recommend people push for rebate cards, because even if you are offered one to keep your business, you usually will not qualify for it because you typically cannot meet the rebate’s terms and conditions, resulting in a rejection letter several months later from the third-party rebate processor.

To find out pricing of current promotions, start by visiting the phone company’s website to see what it has to offer. After that, it is off to Time Warner Cable’s website, pretending to be a new customer and creating a package similar or identical to what you receive today.

PrismTV + Internet, from CenturyLink

PrismTV + Internet, from CenturyLink. This service is being introduced in a number of CenturyLink-served communities.

Along the way, take note of fine print disclosures about contract terms, equipment fees, surcharges, etc. Some new customer offers increase in price during the second year, but ignore that. You are only negotiating for a better price for one year. In general terms, you are probably going to find new customer prices averaging in this range:

  • Broadband only: $34.95/mo for 12 months (Standard service)
  • Triple Play (broadband, TV + Enhanced DVR, phone): $99.99/mo for 12 months (30Mbps service)
  • Double Play (broadband + TV): Expect to pay around $80-90 for Standard/Turbo/Extreme broadband with traditional 200+ channel Preferred TV (periodic promotions offer enhanced speed broadband at the higher side of this price range)

Be aware most promotions start with lowball offers that do not include equipment like the very popular and expensive DVR (with the equipment and service fee), and the additional cost of a second set-top box many people have in their master bedroom. There are also Broadcast TV and Sports Programming surcharges increasingly charged by providers, and the usual taxes and fees.

No, dealing with Time Warner Cable won't reduce you to tears.

No, dealing with Time Warner Cable won’t reduce you to tears.

If you want to save time and are comfortable with a triple play package including 200+ channel Preferred TV with DVR and one additional standard HD set-top box, Ultimate Internet (50Mbps or 300Mbps in Maxx-upgraded areas), and Unlimited local/nationwide home phone service with voicemail, you should be able to easily negotiate a price hovering around $120-130 a month. We pay closer to the high side of that range after subscribing to “whole house” DVR service, which allows you to watch shows recorded on a DVR in another room. That price represents about a $50/month savings over the $175 price we would pay with the lesser promotion they offered us after the most recent one expired. If you are in a more competitive market with an even better deal than we found from our local providers, Time Warner should be able to match it too.

It’s Time to Make the Cancel Call

We’re getting close to making that phone call. Just one more reminder: the retention operator will probably try to question your competitor’s deal. That is where our magic word UPGRADED comes in. You are going to stay resolute the competitor’s offer you negotiated and are telling Time Warner about specifically targeted those gotcha fees and hidden charges, which have all been waived or do not apply. To win your business after the upgrade, the price quoted is the “out the door” price exactly as it will be billed to you, without hidden fees, no term contracts, and no gotchas. You can acknowledge those fees are common among many providers, but they do not apply to you in this case.

Get a glass of water, a pen and paper, and be prepared to spend about 30 minutes total on the phone (most of that will be on hold as they change your account to add the promotion you just won).

Call 1-800-892-4357 and say “cancel service” when the automated system asks what you are calling about. From there, your call will be forwarded to a customer retention call center. The first thing you should ask when connected is the representative’s name and extension (or other identifying information). If your deal isn’t applied (or applied correctly) to your account, the name of the person you spoke with will go a long way to getting any problems straightened out.

timewarner twcYou will be asked why you are canceling service. You want to emphasize “it costs too much” and you have “found a better deal” elsewhere. You should expect the representative to start negotiations by attempting to downgrade your current service to save money. Do not play this game at this point in the call. Politely tell the representative you are not interested in a reduction in your services because you can get the same or better from the competition… at a lower price. Keep reminding them your concern is over the cost of the service, nothing else. Don’t get sidetracked talking about service problems or poor customer service. Address those issues at the end of the call.

Despite assertions Time Warner Cable customers won't endure extended hold times, at least 2/3rds of our recent calls were spent listening to hold music.

Despite assertions Time Warner Cable customers won’t endure extended hold times, at least 2/3rds of our recent calls were spent listening to hold music.

You will be asked to describe the deal from the competitor. Let them know that with recent upgrades in your area it covers all the TV channels you want to watch, has the same broadband speed you are getting now, and offers unlimited local and long distance calling to all the places you care about. Let them know you have already talked to the other company but after a family discussion, you decided to give Time Warner a chance to match or beat their offer and will stay as a customer if they can.

The retention operator will likely try to challenge the competitor’s offer, but each time politely remind them your offer either includes those fees/charges or waives them with no contract obligation and no cancellation penalties. Tell them that competitor is going all out to sign up new customers in your neighborhood.

At all times, be polite, persistent, and persuasive. If you are pleasant, representatives will often go the extra mile for you. Try saying, “is there anything else you can try to get me a better price,” “I really appreciate all of your help today,” and “thank you for looking into this for me.” If things seem to be going against you, remind them, “I know there must be something we can do together to get to a better deal,” “I know you might not be able to do this for me, but perhaps a supervisor could?” and “maybe I am approaching this wrong and we need to start over and try to find the best promotion we can, even if it means adding or changing something that will get me a better deal.”

At this point, the operator will put you on hold and review the promotional offers they can apply to your account. When they return to the line, hear them out but you need them to come within $5-10 of the deal you took to them. If they can’t, you can usually ask if a supervisor will grant you a one time service credit for the difference between the two prices, or to give you a free upgrade to faster Internet speed, a premium movie channel, or something else to sweeten the offer. Try to stay flexible over a few dollars either way. The representative cannot make up a deal, they have to find one in the system that matches your current services and enter the proper code(s) to apply it to your account. Write everything down and repeat it back as you go to make sure you both understand the terms. Also make certain to ask if ANY other fees or charges apply, and if they do, write them down. In most cases, the price you get will be before taxes and some surcharges.

If you find you are dealing with a difficult or intransigent representative, thank them for their time, hang up and call back in a few hours and try again. You never have to commit to a deal immediately. If you want to think about it, ask for the representative to note your account with the offer he or she made and ask their name so you can refer back to that conversation when you call back.

Save your notes. It is unfortunately all too common that the deal you were promised over the phone can look very different on your first bill. But if you kept your notes and the name(s) of representatives you spoke with, any problems can be fixed later with a corrected deal or service credits.

[flv]http://www.phillipdampier.com/video/Inside Amy Schumer – Calling the Cable Company.mp4[/flv]

Amy Schumer calls Time Warner Cable. It wasn’t this bad for us, we swear! (4:45)

CNBC (Comcast)’s Magic Box of Tricks and Traps: The Hit on Tumblr Founder David Karp Debunked

Uh oh... deer in headlights moment for Tumblr founder David Karp.

Uh oh… deer in headlights moment for Tumblr founder David Karp.

Net Neutrality opponents today made hay about an underwhelming, sometimes stumbling debate performance by Tumblr founder David Karp, who was inexplicably CNBC’s go-to-guy to explain the inner machinations of the multi-billion dollar high-speed Internet connectivity business.

TechFreedom, an industry-funded libertarian-leaning group spent much of the day hounding Karp about his “painful, babbling CNBC interview.”

“Those pushing #TitleII have NO FREAKING CLUE what it means,” tweeted TechFreedom’s Berin Szoka.

BTIG Research devoted a whole page to the eight minute performance, where Karp faced interrogation by two CNBC hosts openly hostile to Net Neutrality and another that expressed profound concern the Obama Administration would over-enforce Net Neutrality under Title II regulations. CNBC is owned by Comcast, a fierce opponent of mandatory Net Neutrality.

“Given the importance of Net Neutrality and the central role played by Tumblr’s Karp in getting us to this point, we thought it was very important for everyone to watch his interview earlier today on CNBC in its entirety,” wrote Rich Greenfield, noting the “best parts” (where Karp appeared like a deer frozen by oncoming headlights) were encapsulated into an extra video clip.

Greenfield referred to a Wall Street Journal piece in February that suggested access means everything when it comes to D.C. politics:

“In a lucky coincidence, Tumblr Chief Executive David Karp, who attended the meeting in New York, found himself seated next to Mr. Obama at a fundraiser the following day hosted by investment manager Deven Parekh.

Mr. Karp told Mr. Obama about his concerns with the net-neutrality plan backed by Mr. Wheeler, according to people familiar with the conversation. Those objections were relayed to the White House aides secretly working on an alternative.”

That was sufficient for some to imply Karp was a powerful influence over the president’s sudden pronouncement last November that strong, all-encompassing Net Neutrality was the was to go.

CNBC’s hosts grilled Karp, asking him to prove a negative, set up false premises for Karp to defend, and repeatedly cut his answers off. At the same time, Karp was clearly unprepared and often did not have his facts in order.

Stop the Cap! sorts it all out.

[flv]http://www.phillipdampier.com/video/CNBC Tumblr Net Neutrality 2-24-15.flv[/flv]

Nobody’s shining moment on the Net Neutrality debate on CNBC featuring an unprepared David Karp, founder of Tumblr vs. the B-team at CNBC – lackeys with an agenda who can’t wait to interrupt. Truth comes in last place. (8:18)

CNBC Claim: “If you talk to AT&T’s Randall Stephenson, he will say right now they have more capital expenditures than any company in America … and if you turn it into a utility it will not be profitable to continue investing like that.”

Fact: AT&T does invest heavily in its network but also enjoys very healthy returns on that investment. In 2014, AT&T was expected to end the year spending about $21 billion, primarily on its highly profitable wireless network. Last week, USA Today published a list of the top 12 companies in the Standard & Poor’s 500 that boosted capital spending by 40% or more in the past 12 months and spent at least 15% of revenue on capital expenditures. AT&T was not on it. Outside of claims from telecom companies and their lobbyists, there are no plans by the FCC to turn broadband into a regulated utility.

Karp Claim: “There is a tremendous amount of throttling going on right now.”

CNBC Question from Alternate Universe of Fair, Balanced Journalism:

CNBC Question from Alternate Universe of Fair, Balanced Journalism: “In general, do you think heavy-handed government regulation is a good thing or a bad thing for an industry?”

Fact: “Throttling” is not well-defined here. There is intentional throttling among certain wireless companies, usually under the guise of “fair access policies” and usage caps, and there is throttling as a side effect of congestion in two areas: backbone connectivity among certain ISPs and wholesale traffic handlers and last mile congestion among providers, especially those offering DSL in rural areas, where multiple customers share access to a limited capacity middle mile network. There is no evidence that any significant wired providers are intentionally throttling the speeds of services except as part of a fair access policy or a purposeful lack of investment in network upgrades.

CNBC Claim: “You have a monopoly because it is really expensive to build the pipes so you have not had multiple people who will build pipes to the door.”

Fact: The capital cost required to offer wired broadband service to each home is a clear deterrent for many providers, but not an insurmountable one as Google and community-owned providers have demonstrated. The cable industry won early protection from competition in exclusive franchise agreements that calmed investor fears that the enormous cost of wiring communities for cable might not be repaid if a competition war broke out. AT&T later fought for and won statewide franchising agreements and considerable deregulation in many states where it provides U-verse, arguing regulatory burden reduction would enhance competition. But the same large cable and phone companies that achieved deregulation for themselves have lobbied heavily to regulate and banish community-owned providers from getting off the ground by encouraging the passage of restrictive state laws making such competition nearly impossible.

CNBC Question: “In general, do you think heavy-handed government regulation is a good thing or a bad thing for an industry?”

Our reply: Really?

Karp: I think a bright line rule that sort of spells out these foundational principles that we believe in… I think the Bill of Rights is a good thing… even without getting into the weeds, spelling out something like the First Amendment that says this is a truth that we believe… (cut off).

CNBC: I don’t see how that is an answer at all comparing this to the Bill of… I understand the Bill of Rights but… has there been a problem up to this point where you feel that people… that Net Neutrality has been violated.

Karp: We’ve had instances where companies like Comcast have tried to block whole protocols and shut off consumers access to new innovative parts of the Internet.

Traffic congestion problems on many major ISPs were limited to Netflix traffic, until Netflix began paying for peering connections with problem ISPs.

Traffic congestion problems on many major ISPs were limited to Netflix traffic, until Netflix began paying for peering connections with problem ISPs.

Fact: In 2007, Comcast installed new software or equipment on its networks that began selectively interfering with some of Comcast’s customers’ TCP/IP connections. The most widely discussed interference was with certain BitTorrent peer-to-peer (P2P) file-sharing communications, but other protocols were also affected. The case led to an effort by the FCC to introduce open Internet traffic rules in 2010 which Comcast later defeated in court. At no time did Comcast completely block access – it simply impeded it, reducing customer speeds only while using those services.

A CNBC host then challenged Karp to prove a negative on AT&T’s plans to pull back investment in its network expansion.

“How has it been disproven that he’s not actually going to pull in on his buildout of more infrastructure?”

Fact: On Nov 7, 2014 – a week before President Obama unveiled his support for strong Net Neutrality policies – AT&T announced at least $3 billion in capex reduction (or “pull in” to quote CNBC) for 2015 in a press release on its acquisition of Mexico Wireless Provider Iusacell:

AT&T’s VIP-related capital investment levels will peak in 2014, as the company has said previously. As a result, AT&T expects its 2015 capital expenditure budget for its existing businesses to be in the $18 billion range. This will bring the company’s capital spending as a percent of total revenues to the mid-teens level — consistent with its historical capital spending levels.

Even after AT&T CEO Randall Stephenson was announcing cutbacks in capex, his office was releasing press releases claiming a major expansion of AT&T’s gigabit fiber upgrades for U-verse, claims Stop the Cap! have found to be grossly exaggerated.

Stephenson made the mistake of putting the cart in front of the broadband horse, making it impossible to credibly claim he was reducing his capex budget because of a Net Neutrality policy that had not even been announced yet.

CNBC Claim: “It doesn’t mean someone will pay for it if they are losing money as a result.”

Fact: None of the providers mentioned by CNBC have lost any money provisioning broadband service. In fact, broadband is becoming the new profit center of the industry, netting higher revenue after adjustments for cost than any other part of the cable package.

Another exchange:

CNBC: “If you look at Netflix traffic, sometimes it is 80 percent of the network’s nighttime load.”

Karp: “The consumers are paying for it and Netflix is already paying for it.”

CNBC: “I am not a Netflix user and it ticks me off I have to subsidize everybody that is doing that. Why do I have to pay for that?”

Fact: The CNBC host is being disingenuous and inaccurate. Although Netflix traffic can constitute 80% of the evening traffic load, the customers accessing Netflix paid both Netflix and their ISP for that traffic. Whether or not the CNBC host uses Netflix or not is irrelevant. Assuming she is a Comcast or Time Warner Cable customer, last mile congestion that could impact her enjoyment of the Internet was never an issue under DOCSIS 2, has been rendered a non-issue under the current DOCSIS 3 standard, and will remain a non issue going forward.

The traffic dispute between Comcast and Netflix only affected Netflix viewing. The CNBC host need not subsidize Netflix or anyone else. Netflix offers free peering services and equipment to any ISP that wants it. Comcast refused to take part, demanding financial compensation instead. It then raised rates on customers anyway. Her beef is with Comcast, not Netflix.

United Arab Emirates Internet Provider du Announces Upgrade to 1Gbps for All

Phillip Dampier September 9, 2014 Broadband Speed, Competition, Consumer News, Public Policy & Gov't, Video, Wireless Broadband Comments Off on United Arab Emirates Internet Provider du Announces Upgrade to 1Gbps for All
du's call center is 91%  female and 100% staffed by citizens of the UAE. (Photo: The National)

du’s call center is 91% female and 100% staffed by citizens of the UAE. (Photo: The National)

Broadband users across the United Arab Emirates will soon find their Internet connections upgraded to 1Gbps as the country transforms its broadband services to deliver world-class speeds without steep price increases.

ISP du announced this month it had successfully completed tests to upgrade its network to deliver 1,000Mbps service to its customers, delivering a faster data experience over a substantially improved bandwidth backbone.

“Offering 1Gbps speeds is yet another incredible triumph of our team’s efforts and a significant milestone in our progression towards offering unmatched user experience,” said Saleem AlBalooshi, executive vice president of network development and operations at du. “As always, this is designed around our customers and they stand to benefit from this initiative.”

Customers in the United Arab Emirates already enjoy substantially better telecommunication service at a lower cost compared to North America.

UAE mobile users already receive VoLTE 4G service, which allows customers to talk and browse the Internet simultaneously on a substantially upgraded LTE network. The ISP has offered wireless customers HD Voice — a better quality voice calling experience — at no extra charge since 2012. The company has also extended the technology to its older 3G mobile networks and supports HD quality landlines as well. This year, the company will deploy its LTE-A Carrier Aggregation technology to combine bandwidth available at different frequency bands to improve wireless speeds and reliability.

In April, the country introduced new regulatory policies requiring providers to sell access to their networks at reasonable wholesale prices, spurring competition and letting residents choose between different providers for the first time. Despite the open access rules, investment continues to pour into the UAE’s telecom networks for expansion and upgrades, even as customers see their bills decline.

[flv]http://www.phillipdampier.com/video/UAE Weekly Interview Featuring Osman Sultan CEO du 4-20-14.mp4[/flv]

UAE Weekly features du’s CEO Osman Sultan who explains how du is very different from ISPs in other countries, especially in the USA and Canada. Sultan explains du doesn’t use offshore call centers, doesn’t frustrate customers with constant rate increases and usage restrictions, offers nationwide Wi-Fi, and believes in using competition to please customers, not alienate them with tricks and traps. From Dubai CITY TV-7. (April 21, 2014) (21:39)

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