Satellite company Dish Network suffers a competitive disadvantage its grounded competition doesn’t — the ability to offer a broadband and phone service package along with a lineup of video channels.

Not anymore.

On Monday, Dish announced its intention to acquire Denver-based Liberty-Bell Telecom, a small telephone company serving 6,000 residential and 4,000 business customers in Colorado, New Mexico and Utah.

The purchase, if approved by the Federal Communications Commission, would give Dish the chance to sell a “triple-play” bundle of telephone, broadband, and satellite-delivered TV channels to Liberty-Bell customers.

Martino

Liberty-Bell was started by a consumer reporter, Tom Martino, currently working for KDVR-TV in Denver and host of the national radio program, The Troubleshooter Show.  The acquisition would deliver a 90 percent stake to Dish.  The phone company has an established reputation for consumer-friendly service, even giving out the personal cell phone number of company owner Nigel Alexander in case customers run into trouble.

The phone company already had an extensive bundling arrangement with Dish, heavily promoting the satellite service as part of its phone and broadband service package.

The move to acquire Liberty-Bell may be Dish’s first foray into developing its own triple-play package to compete with cable and phone companies.  Liberty-Bell delivers service to customers under a wholesale agreement with incumbent provider Qwest and is licensed to provide service to residential and business customers in 10 states.  Theoretically, Liberty-Bell could develop a much larger reach with wholesale agreements with incumbent phone companies around the country, especially with the financial backing by Dish.

That could create opportunities for the satellite company to meet the needs of an increasing number of Americans seeking telecommunications services from a single company.

Dish currently has reseller agreements with other independent phone companies, including Frontier Communications.

AT&T unveiled it’s U-verse system Monday in the Triad region of North Carolina, hoping to poach customers from Time Warner Cable’s “triple play” package of phone, broadband, and cable service.

AT&T U-verse services, which are delivered over AT&T’s Internet Protocol (IP) hybrid fiber-copper network, offer an alternative to cable with a DVR that can record more programming than the competition, features and apps not available from the local cable company, and additional channels new to the region. AT&T U-verse can combine every AT&T service a customer subscribes to onto a single monthly bill.

The most popular Internet-only tier of service has somewhat anemic download speeds up to 6 Mbps for $43 a month — other packages range from $38 for 3 Mbps to $65 for 24 Mbps.

U-verse TV packages include “local-channel only” service for $19 a month (with a stinging $199 installation fee), to more than 390 channels for $112 a month, with a $29 activation fee.  Other packages include U-100 with 130 channels for $54 a month and U-200 with 230 channels for $67.  High definition channels, now numbering more than 130, cost $10 extra per month.  Want premium channels in HD?  That’s another $5 a month.

Like other providers, AT&T has tinkered with pricing to deliver the most savings to customers who bring all of their business to AT&T with a triple-play bundle subscription.

“Today’s expansion of AT&T U-verse reflects our commitment to make the investments necessary to bring consumers across the Piedmont Triad a new era of true video competition,” Cynthia Marshall, AT&T North Carolina president said in a statement. “Local residents have asked for more choices in television service and today we’re delivering.”

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/ATT U-verse introduction.flv[/flv]

Watch this comprehensive video from AT&T explaining the many types of services U-verse offers and helpful tips to prepare for service installation.  Then view an actual installation in a customer’s home who shows off the equipment.  Stop the Cap! recommends you let AT&T do all of the required wiring for you.  That’s why you are paying that installation fee!  (22 minutes)

Brubaker

But despite the company’s claims that competition will deliver lower prices for consumers, the evidence suggests otherwise.

AT&T credits a statewide video franchising bill passed in the North Carolina legislature for making U-verse possible in the state.  Company officials showed their thanks by inviting the two state legislators instrumental in shepherding AT&T’s agenda through the General Assembly to be on hand to take credit for introducing cable competition in the state.  They also publicly thanked them in their press release.

Seventeen term House Rep. Harold Brubaker (R-Randolph) congratulated AT&T for its accomplishments.  Brubaker received $4,000 in campaign contributions from AT&T in the first quarter of 2010.

The representative from Asheboro co-sponsored the 2006 Video Service Competition Act which stripped local oversight of cable operators and made AT&T’s entry into North Carolina effortless.  For other would-be competitors, especially municipalities seeking to build their own fiber networks, Brubaker has been far less helpful.  Most recently, he voted against an effort to bring broadband service to Caswell County in areas incumbent provider CenturyLink has ignored for years.

Adams

“Prior to the legislation, you had geographic areas where you operated in, so it kind of like took the walls down. The legislation took the walls down to allow for more direct competition for the consumer. Competition is great.  The consumer’s the one that benefits,” said Brubaker.  “AT&T’s presence in the market will very definitely save customers money.”

Rep. Alma Adams (D-Guilford), another co-sponsor, said AT&T’s arrival was exactly what she hoped for when she supported the legislation.

“As policymakers, our goal was to increase investment in North Carolina and give consumers more choices and innovative new services,” said Adams. “Today’s announcement makes that goal a reality for Triad residents.”

Adams added that AT&T U-verse also provided a safety valve for consumers who want an alternative to incumbent provider Time Warner Cable.

“Even if they like a particular company, they always like to know that there’s some other opportunities out there that they can look at as well, so they can do some comparing,” she said.

[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/Important Information about ATT U-Verse system.flv[/flv]

AT&T delivered more time and attention to North Carolina legislators at their launch event than they ever will on U-verse.  AT&T segregates Public Access, Educational, and Government channels on a single U-verse TV channel that makes for tedious viewing.  Watch this demonstration from the California Public Utilities Commission.  (4 minutes)

AT&T announced the service would initially be available in limited areas of Forsyth, Davidson, Guilford, Rockingham and Alamance counties, and we do mean “limited.”  Many Triad residents who checked to see if the service was available in their area found it was not.  In fact, AT&T refuses to disclose exactly how many customers in the region can actually sign up for the service.  We couldn’t find anyone who could order the service when it officially launched.

“There will be small pockets around most of the entire area,” Chuck Greene, AT&T’s regional director for the Piedmont Triad told the News-Record. “Once we complete the build-out, it will include parts of Davidson, Caswell and Randolph.”

AT&T lobbied hard to sweep away earlier provisions in local video franchises that committed providers to rapidly expand service to every possible customer in their respective service areas.  Under the Video Services Competition Act, AT&T can take its sweet time, perhaps for years before service becomes widely available across the region.  Some areas will never receive the service.

Time Warner Cable welcomed competition from AT&T U-verse.

“For a long time, Time Warner Cable has faced competition from satellite and dish providers,” Scott Pryzwansky, the company’s local public affairs manager, wrote to the News-Record. “We continue to invest in our network and remain committed to bring the best products and services to the Triad. We are confident we will maintain positive relationships with our customers.”

Time Warner Cable has little to fear from AT&T’s arrival.  Pryzwansky said Time Warner Cable has not lowered its pricing in any of the markets where it faces AT&T U-verse competition.  Both AT&T and Time Warner Cable have raised prices at least annually for their respective subscribers.  The only exception in North Carolina has been in Wilson, where municipal provider Greenlight has kept Time Warner Cable from increasing prices.

Time Warner Cable maintains a special website to cope with competition from AT&T U-verse and satellite providers. Hilariously, the site quotes a piece from DSL Reports about U-verse price increases. Time Warner subscribers might not want to venture too far beyond that piece, because editor Karl Bode reports on the cable company's own rate hikes as well. (Click image to visit TWC site)

Stop the Cap! reader Sam in Greensboro thinks AT&T’s arrival is much ado about nothing.

“AT&T prices their U-verse service nearly the same or more as Time Warner Cable, especially after the introductory rate expires,” he says.  “Few people are going to be bothered switching back to Time Warner after the year is up, so they’ll be paying the same high prices for cable service to AT&T instead of the cable company — a distinction with no difference.”

Sam won’t bother with U-verse because he is disgusted with AT&T’s lobbying efforts to stop consumer broadband reform and Net Neutrality.

“It’s like dealing with the devil,” Sam writes.  “Why would I want to pay AT&T my money so they can turn around and spend it working against my interests as a consumer?”

The only good thing about U-verse’s arrival is that it may stall Time Warner Cable from trying another Internet Overcharging scheme in the area.

“Time Warner has to think twice about another usage cap and overlimit fee ‘experiment’ in the Triad if customers can simply flee to U-verse, although knowing AT&T they’d love to have the same rationing of the Internet they force on their wireless customers,” Sam said.

[flv width=”636″ height=”373″]http://www.phillipdampier.com/video/TWC Fights Back U-verse.flv[/flv]

Time Warner Cable maintains a sometimes-bizarre web campaign to convince customers not to switch to U-verse or satellite.  We’ve put together the various videos so you can watch them all at once.  (4 minutes)

Like Time Warner Cable, AT&T does not offer a-la-carte cable programming, either.  Customers can only choose from large packages of programming, not individual channels.

Triad area cable customers told local media they were tentatively glad U-verse is competing, but many are taking a wait and see approach as to whether they’ll actually see any savings.

WFMY News 2 spoke with cable customers today. One man said he feels like a “hostage” to his cable company because they have a monopoly on TV, Internet and phone bundles. A woman said cable and satellite companies drive her “crazy,” so she gave up and now simply rents movies.

“I am happy, but it’s hard times. I have three children. We live on one income,” Jamie Rettie, a Time Warner Cable customer told News 2. Whether she switches to AT&T or not, she’s said she’s hoping for a change in her bill.

“Hopefully they’ll keep competing against each another and have better and better prices for their services,” she said. “(I’ll) wait out my contract and we’ll see what happens.”

Some residents, like Thomas, are left picking the lesser of two evils:

“I don’t know who’s worse at their game, as Time Warner Cable and AT&T are both evil corporate entities that care only about their bottom line,” he writes. “Search the Internet and understand this service limits the amount of TV’s that can be used at one time.”

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/Greensboro Media Cover U-Verse Launch 9-13-10.flv[/flv]

Watch several news reports from Triad area TV stations about the introduction of AT&T U-verse.  In order, we include reports from WXII, WGHP, and WFMY-TV.  (7 minutes)

Arris WBM760 DOCSIS 3 Cable Modem

Time Warner Cable is demonstrating 290Mbps downstream coupled with 90Mbps upstream broadband in its booth at the 2010 Cable Show in Los Angeles.  A Time Warner Cable insider told CED magazine it was the first public showing of the company’s ability to provide faster service outside of a lab environment.

The new high speeds are achieved using DOCSIS 3 technology which can bond multiple “channels” on a cable system together to create additional bandwidth.

The demonstration relies on an Arris CMTS and cable modems manufactured by both Arris and Motorola, which are connected to Time Warner’s Los Angeles cable headend.

CED notes Time Warner Cable has plenty of room for broadband speed growth.

The company is achieving the speeds using 8 x 4 channel bonding. With TWC’s top tier rated at 50/5 Mbps, the demo shows speed increases of greater than fivefold on the downstream and 18-fold on the upstream.

The TWC engineer compared the MSO’s achievement with the 300 Mbps that Bell Labs demonstrated on DSL recently.

“What they’ve got is something in the lab that goes 10 feet, and what we’re showing is live from our headend 22 miles away. We can compete (using) DOCSIS,” he observed.

Such developments are all part of a larger company plan to develop and market additional services the nation’s second largest cable operator can upsell to its customers.  For now, 290Mbps service is more theoretical than practical at Time Warner Cable’s likely pricing.  But it illustrates cable remains technologically ahead of what most phone companies can deliver over non-fiber-to-the-home networks.

MediaPost’s MediaDailyNews reports Time Warner Cable is about to begin market testing a new super-deluxe package that moves beyond the “Triple Play” packages common in the cable industry today.  Targeting wealthy, premium cable customers, Time Warner’s new “Homesuite” service would include all the bells and whistles:

• Multiple DVRs for several rooms in the house, with can eventually be connected together to let you start a recorded show in one room and finish it in another;
• A full range of premium channels at a bundled discount price;
• Faster DOCSIS-3 broadband with free Wi-Fi in and outside the home;
• Enhanced digital phone service, perhaps with more calling features;
• Concierge-like customer service, which could allow Homesuite customers to jump to the front of the queue for everything from service installation, repair and customer service.

Other options might include access to Time Warner’s wireless mobile broadband (rebranded Clearwire service), extended hours for service calls, discounts on pay per view, more deluxe set top boxes, and in some areas, even home security systems.

For Chief Operating Officer Landel Hobbs, the idea of selling $100 a month Triple Play package promotions just isn’t good enough anymore.  Time Warner Cable, MediaPost speculates, is now looking at $250 a month as a potential target price for Homesuite clients.

Time Warner Cable customers in Charlotte, North Carolina will be the first guinea pigs for super premium cable.  Are there enough customers around in Charlotte to pony up $250 a month for service?

TWC has conducted a customer “segmentation” study allowing it to identify opportunities for up-selling. “Our analysis indicates that certain of our large and profitable customer segments continue to hold substantial untapped opportunity,” Hobbs said earlier this year.

TWC says in a recent government filing that it’s likely to continue to lose video subscribers, but is expecting to make up for it by persuading customers to take DVR service, premium channels and other add-ons.

Charlotte is a key market for TWC — a Time Warner Cable Arena is located in the city center. After launching there, “Homesuite” would presumably then roll out in other TWC principal areas, which include Ohio, New York, Southern California and Texas. The working “Homesuite” moniker could be altered.

Comcast is back with another rate increase effective April 1st, amounting to 3.5 percent for many cable, broadband, and telephone customers.

Although prices vary depending on your specific service area, the range of the price increase is more consistent.

In southern New Jersey, for example, here is the breakdown — all prices are by the month:

• Expanded/Standard service cable-TV tiers are increasing $2.  Expanded service customers could pay up to $50.10, Standard customers $60.55;
• Triple Play customers will see a $5 increase in the second year of their two-year contract from $114.99 to $119.99.  First year pricing remains $99 for new customers;
• Digital Premium Packages are increasing $2;
• Economy Broadband (1Mbps) increases $2, Performance (12Mbps) increases $2, Blast! (16Mbps) increases $2, Ultra sees no price increases (but goes away for new customers effective 4/1);
• Comcast phone line prices are also increasing in certain cases;
• Each additional DVR drops by $5 — Verizon FiOS was hammering Comcast about DVR pricing.

There are no rate changes for business service customers or subscribers with “limited basic service.”  There is also no change in the company’s broadband usage allowance — 250 GB, the only part of Comcast’s service that seems to stubbornly remain at the same level year after year.

Comcast, the nation’s largest cable operator, blamed the mid-year price increases on increased programming and other business costs.

But the company is not exactly hurting.  Comcast’s 4th quarter earnings last year jumped 132 percent to $955 million dollars.  Rate increases that are designed to drive consumers into profitable service bundles, combining television, Internet, and telephone service, guarantee even better financial results in 2010.

Verizon is already capitalizing on Comcast’s rates by offering residents in southern New Jersey an even better price for Verizon FiOS — dropping from $109.99 for two years to $89.99, not including taxes and fees.  But like Comcast, Verizon wants you take a bundle of services, or else face higher prices.  The company recently increased the price for FiOS TV to $64.99 for standalone service.

The elusive Dell 10v Netbook promised to new Comcast customers back in August is MIA for hundreds who took advantage of the promotion

Five months after Comcast ran a promotion for new customers including a free Dell 10v netbook, many customers across the country are still waiting to receive the computer.

Back in August, Comcast matched a Verizon FiOS promotion promising a netbook to new customers signing a two-year service contract for a $99 monthly “triple play” package of telephone, broadband, and cable programming.

Visitors to Comcast’s website were offered:

HD Starter Triple Play

NEW SUBSCRIBERS: Get a free Dell 10v Netbook with the HD Starter Triple Play for only $99 a month for 12 months and a 2-year minimum term agreement. Plus, you’ll continue the savings the following year with a price of just $10 more per month.

• Free HD – no HD access fees or equipment fees.
• Over 80 digital cable channels.
• Thousands of On Demand movies and shows.
• Internet downloads up to 15 Mbps, uploads up to 3 Mbps with PowerBoost®.
• Unlimited local and long-distance nationwide calling – rated #1 in call clarity.
• Voice Mail and 12 popular calling features including Caller ID, Call Waiting and more.

The campaign apparently shared something else in common with Verizon’s promotions — customers left high and dry wondering when the promised bonus will arrive.

Customer attempts to contact Comcast have met with a wall of excuses and broken promises, and often still no netbook.  Other customers were told they failed to “qualify” for the promotion for not precisely following the terms and conditions that were never explained to them.

Comcast representatives have told customers they lost out because:

• They failed to return a copy of the signed contract committing to two years’ of service, despite insistence from customers who claimed they had;
• Comcast had two promotions running at the same time that were nearly identical, though one offer did not include a netbook. Customers were told they were signed up for the promotion that didn’t include the netbook.
• Customers had to make three or four consistent payments for service, before the due date, or they would forfeit participation in the netbook promotion.
• The customer waited too long to complain about the missing netbook.
• The customer was now a TV customer, and therefore didn’t qualify for the promotion.
• Tri-Star/Checkmyrebate.com, the third party fulfillment center handling the promotion didn’t receive/rejected the customer’s promotion request.
• They lost the paperwork.

Although some customers began receiving the promised promotion more than 120 days after signing up for Comcast, hundreds more are still waiting, and complaining.  A few managed to obtain service credits up to $299 (the retail cost of the Dell 10v) and told to “go buy your own.”   One Seattle television station intervened to help a Kenmore resident finally secure one in January, despite hopes it would have arrived before Christmas for re-gifting.

Escalating the matter to executive customer service is usually the best way to cut through Comcast’s red tape and secure the promotion customers are entitled to receive.

Darren, a Comcast customer who waited months for the cable company to make good on their offer gave some advice:

I started posting on Facebook and Twitter and immediately received a twitter from @ComcastMelissa and @ComcastBonnie. They told me to email: [email protected] and provide my account information so they can get me my netbook. I received an email from Sherri Carson, ([email protected]) at the corporate office – national customer service. On January 7th, 2010 she said “This is going to take about 2 weeks at the most. Sorry, I know you should have received some follow up, but I’m on it.”

The kicker: I emailed her yesterday to say hey, two weeks is almost up and I haven’t heard anything. Here is her response: “You should be receiving your netbook no later than 2/19 at the latest. I will get you a tracking number as soon as I get one. You can check this site in about two weeks.

Just don’t get your hopes too high for a Dell netbook.  Many finally receiving their promotional gift report an Asus Eee PC arrived instead.  Comcast put that in the fine print as well  — it reserved the right to make substitutions.

[flv width=”480″ height=”290″]http://www.phillipdampier.com/video/KING Seattle Comcast called out in Triple Play promotion 1-7-10.mp4[/flv]

KING-TV Seattle helped this Kenmore, Washington viewer finally get her promised netbook after signing up for service in August, 2009.  A Comcast executive personally pleaded for her to stay with Comcast, despite the promotion problem, in this report.  (2 minutes)