Bill Shock

Time Warner Cable’s fastest broadband speeds come to those willing to pay a stiff installation fee — $67.98, covering a required in-home installation.

Stop the Cap! readers have been sharing their experiences calling Time Warner to set up installation appointments for the DOCSIS 3 cable modem swap required to obtain the cable company’s top broadband speeds — 30/5 and 50/5Mbps.

Although one reader was quoted $29.99, the majority are sharing their surprise at a stiff $68 fee just to install the faster Internet experience they crave.

“I’d rather just swing by one of their stores and pick up the modem and install it myself,” writes Jon from Perinton, N.Y.  “All they are going to do is check the line — something they can do remotely — and hand me a new modem, and charge me half of my normal month’s bill for the effort.”

But it could be worse.  One downstate customer shared his experience with an even higher install fee when DOCSIS 3 was introduced in metropolitan New York: $40.95 for the truck trip and a $50.00 wireless activation fee (the new modem was part of a wireless router) – take it or leave it.

Stop the Cap! called Time Warner Cable this morning and learned there is a way to a lower price – be a new Time Warner Cable customer.  Those just signing up for cable, telephone, and DOCSIS 3 broadband service pay just $29.99 for installation of all three services, and we talked them down to $19.99 — the price charged to transfer a phone number to Time Warner’s “digital phone” service.

But they won’t budge on the $67 fee just to upgrade their existing Internet customers.

If you are still paying regular Time Warner prices, perhaps now is the time to cancel service and then return as a “new customer” under a price promotion, also scoring a dramatically lower installation fee in the process.

HissyFitWatch: When contract negotiations with the local cable company get a little too heated for comfort.

The city of Troy, N.Y. has lived with an expired franchise agreement with local cable company Time Warner Cable for more than a decade.  After a shouting match erupted between a city councilman and a city economic development coordinator over its renewal, now we know why.

City officials managed to complete a tentative renewal with the cable company back in March, subject to city council review.  The agreement comes even as Verizon’s FiOS fiber to the home network threatens to provide the cable company with some competition in the region.

As part of the renewal, Time Warner has agreed to provide $80,000 to fund a Digital Technology Lab at the Arts Center of the Capital Region. It will also front $70,000 to help construct a studio for a new government channel that will deliver coverage of city council meetings, which could draw some high ratings if tensions always run this high.

Troy also gets the right to collect the maximum franchise fee allowed by law and receives a $200,000 settlement to cover alleged franchise violations that occurred under the old agreement.

One of Time Warner Cable’s biggest skeptics on the city council is Councilman Bill Dunne, (D-District 4).  He’s heard complaints about Time Warner’s prices and service from his constituents for some time, and told The Record he is “cautiously optimistic” about the potential deal, but stressed it will not be approved by the council until it is thoroughly reviewed.

Dunne suspects the cable company has made a fortune off Troy residents for years, and he wants to closely examine how well the cable company has done in upstate New York before handing them a lengthy contract extension.

Troy, New York

“I would like to see an independent auditor open up the books on Time Warner Cable … to see exactly where the money is going and how much money is being made [from Troy cable subscribers],” he told the Troy newspaper.

Some residents suspect whatever Time Warner Cable “gives” the city as a result of contract negotiations will be quickly made back in future rate increases.

“These negotiations are a sham because Time Warner Cable is negotiating with our money,” Troy resident Bill Thompson tells Stop the Cap! “If they give the city $500,000, they’ll just raise our rates to get that money back.”

Thompson says he applauds Dunne’s skepticism, and believes bringing in competition from Verizon is the only way to keep prices in check.

Christopher, during happier times.

Dunne’s ongoing concerns about Time Warner caused a fracas during last Thursday’s city council meeting, when Dunne won approval to take the Time Warner Cable franchise renewal off the table.  In its place, Dunne’s new substitute resolution forming a working group to study the proposed franchise renewal and more importantly, perform an audit of Time Warner Cable and their supporting documents.

That decision infuriated Economic Development Coordinator Vic Christopher, who had been working with Time Warner Cable and the mayor’s office to push for a speedy approval of what he felt was a well-reviewed franchise renewal agreement. When Christopher objected to the study group, and delaying the agreement in general, Councilman Ken Zalewski (D-District 6) suggested he and the mayor’s office were representing the cable company more than city residents.

That did it.

As the meeting ended, a shouting match ensued between an offended Christopher, Zalewski, and Dunne. Christopher called the city council “obstructionists” and then followed up on his Twitter account accusing the council of talking everything to death. Dunne suggested Christopher should run for office if he didn’t like the way the council represented the interests of Troy residents.

“Christopher’s petulance was an amazing spectacle to watch, especially considering nobody was directly attacking him,” Thompson says.  “He took it as a personal attack and responded in kind, and it only reinforced the notion the mayor’s office was in a hurry to get this agreement signed.”

[flv width=”480″ height=”290″]http://www.phillipdampier.com/video/The Record Spat in Troy Over TWC 4-22-11.mp4[/flv]

The hissyfit over a Time Warner Cable franchise agreement extension was caught on a cell phone camera, and the resulting video was promptly published online by The Record, Troy’s local newspaper. (1 minute)

TWC Franchise Agmt

As Time Warner Cable continues it channel re-alignments in markets across the country, some subscribers are coming up with fewer channels after the changes, but they are still paying the same cable bill — for fewer channels.

“It’s classic cable bait and switch,” shares Stop the Cap! reader Kyle from Kansas City, who spent hours fiddling with his TiVo box after Time Warner re-mapped the area’s channel lineup earlier this month.  “TiVo really underlined it for us, albeit unintentionally, when we discovered several channels no longer available to us unless we paid extra.”

While Time Warner Cable moved Kansas City to its theme-based lineup, which places similar channels together and aligns HD channels with their standard definition counterparts, they also used the occasion to re-tier some of their “free” channels into mini-pay tiers.

Among the channels out of the digital cable standard lineup:

• Encore MoviePlex — Seven theme-based commercial-free movie channels;
• IFC — Independent Film Channel
• Fox Movie Channel
• Flix
• RFD-TV
• Ovation

The movie channels are being re-tiered in a mini-pay package called TWC Movie Pass, which will eventually sell for $4.95 per month after some early promotional discounts.  RFD and Ovation are part of a new “Digital Choice” tier.

“It’s the usual deception from Time Warner, which claims to sell you ‘free HD’ service without also telling you a rented set top box is required, which adds at least $7 a month for the ‘free HD’ channels,” Kyle says.  “Now they don’t even give you that as they start stripping networks away from their HD lineup to sell you for more money.”

Some subscribers are less than happy with the outcome, considering they now have fewer channels and are still paying the same cable rate they were before the channel change.

“It’s a shell game they always win — find the channels, keep your eye on the channels, wait — they are gone.  Pay us anyway.”

Aaron Barnhart, who writes for the Kansas City Star, called it a PR failure.

“Time Warner proved once again to be its own worst enemy, hyping all the good things and leaving it to customers to discover the not-so-good-things on their own,” Barnhart wrote.

Time Warner’s reasons for the channel changes, reported by Barnhart, seemed less than convincing to customers.

Time Warner’s spokesman Matt Derrick pointed out that “in most places, Encore is bundled as a premium package with Starz.” Liberty Media, which owns both Encore and Starz, used to offer Encore to cable operators as a digital-cable value alternative to premium channels. But that has changed, and Time Warner negotiated this 12-month rate with Liberty to encourage customers to go along with the switch.

Derrick explained that Digital Choice was designed as a low-cost alternative to its larger Digital Variety package, where the same channels are also available.

“Wait, that doesn’t even make sense,” Kyle argues.  “Time Warner negotiated with Liberty to turn a free set of channels into a pay tier to encourage us to go along?”

Kyle doesn’t think the reasons for Digital Choice made any sense either.

“How many people are demanding to pay extra for Ovation and RFD, exactly?” Kyle wonders.  “What is missing from all this is why our rates did not decrease to compensate us for the lost channels.”

Kyle says the $4.95 a month rate for TWC Movie Pass may not seem as much as a pay network, but he reminds us Time Warner will continue to collect money from every subscriber for the channels they’ll no longer get.

“So if it costs them $4.95 a month for Encore, we’re all still paying that because our bill isn’t going down; if we actually want those channels, that costs another $4.95 — $9.90 a month.

[flv width=”480″ height=”290″]http://www.phillipdampier.com/video/WLWT Cincinnati Time Warner Channel Realignment 4-18-11.mp4[/flv]

WLWT-TV in Cincinnati explains to certain Ohio viewers how to accomplish a needed channel “re-scan” that comes along with the channel re-alignments Time Warner Cable is performing across the country.  (2 minutes)

Time Warner Cable is blaming an increase in pole attachment fees in upstate New York for increasing the cost of doing business, despite the fact those increases will not apply to the cable company.

National Grid, which also does business as Niagara-Mohawk, is raising rates for third-party companies to attach new lines to the poles the electric utility owns.  The power company says it is the first rate increase since 2007, and covers the cost of engineering, safety reviews, and ongoing infrastructure costs.

The Albany Times-Union quotes Time Warner Cable spokeswoman Lara Pritchard’s reflexive complaints about the rate increases.

“Inevitably, any price increase to poles will impact our costs to bring service,” Time Warner spokesman Lara Pritchard said Monday. “At this time, we have no plans to adjust fees. We periodically assess all of our associated costs to do business, as any company would, and this would factor into that assessment.”

If so, it should be by a factor of zero because the pole attachment fee increases apply only to companies seeking to place new lines on utility poles, not those maintaining or replacing existing cables.

The New York Public Service Commission approved the utility’s request for a change in their “Make Ready” rates, which cover costs associated with new projects. Existing companies, including Time Warner Cable will continue to pay a locked-in rate of $11.13 per pole, which represents no change.

Verizon acknowledged as much, noting the company’s existing fiber and copper wire lines are exempt from the rate hike.

But not every company is being held harmless from the rate increases.

Major projects to extend fiber broadband service to rural Franklin and St. Lawrence counties in upstate New York could be at risk because Niagara Mohawk, the dominant power provider in the region, is raising the rates to place fiber on some 22,000 poles required for the network.

Slic Network Solutions, the Development Authority of the North Country and Ion HoldCo LLC are facing at least $3.5 million in higher pole attachment expenses the utility said nothing about when they reached an agreement with National Grid in December.

Taxpayer grant money is backing the projects, including Slic’s 136-mile network covering parts of Franklin County and another 660-mile project in St. Lawrence County.  Ion operates a fiber optic broadband backbone that extends throughout upstate New York.

Keith J. Roland, an attorney with the Herzog Law Firm representing the three companies, has filed a formal complaint with the N.Y. State Public Service Commission, calling the rate increase “unjust, unreasonable, excessive, and unlawful.”

Roland says the increased costs, which he calls “arbitrary,” could threaten the viability of the projects.

“Without access to those poles, SLIC, DANC and Ion and almost any other telecommunications, cable TV and Internet provider in rural area of Niagara Mohawk’s territory would be driven out of business or effectively be precluded from doing business,” the complaint states.

iPad Owners:  Don’t get too comfortable with the channel lineup on Time Warner Cable’s free app for watching streamed HD video of some of your favorite cable networks.  What you see today may be gone tomorrow (or replaced by something else.)

Time Warner Cable’s ongoing effort to implement their TV Everywhere-vision have run headlong into a legal quagmire as some content owners object to the new service.

Back in March when the app first appeared, the cable company was offering a few dozen channels of national cable feeds, with a heavy emphasis on news and mainstream cable networks.  But then Viacom, News Corp., and Discovery Communications protested, claiming the cable operator had not negotiated streaming rights for their networks.  Viacom and Time Warner Cable are currently suing one another over the matter.

Although some programmers use the excuse streamed video could reach “unauthorized viewers who do not have a cable subscription,” viewing restrictions imposed by Time Warner Cable makes that unlikely.  The cable operator requires viewers to watch from a Time Warner Cable Wi-Fi broadband connection.  Wi-Fi hotspots don’t work; neither does access from 3G or 4G mobile broadband networks.  The cable company says that restriction is by design.

“We believe that the location inside the home grants us the rights, provided the method of delivery is over a traditional cable network which is exactly what we’re doing,” Time Warner Cable’s Alex Dudley told NY1, Time Warner’s 24-hour news channel in New York City. “This is not programming delivered over the Internet; this is delivered over our network just like your cable television is delivered, and then to your Wi-Fi router where it reaches your iPad.”

So it is really about money.  Programmers want extra compensation from the cable company for streaming their content, and the cable company doesn’t want to pay extra.

While negotiators and the courts untangle the mess, the cable operator has been adding some channels while deleting others.  The big losers: Animal Planet, Black Entertainment Television, Country Music Television, Comedy Central, Discovery Channel, FX, MTV, National Geographic, Nickelodeon, Spike, TLC and VH1 — are all currently off the lineup.

The winners: C-SPAN, which gets all three of its channels streamed.  A variety of other “enlightened” (Time Warner Cable’s words) cable networks have given the green light to be a part of the project.  Recently added: AMC, Bio, Bloomberg, CNBC World, Chiller, Current, Disney XD, ESPN News, G4, Golf Channel, History International, HSN, IFC, Jewelry TV, Lifetime, NY1, Oxygen, QVC, Reelz, Sleuth, Soap Channel, Style, and Tru TV.  (In New York City, Galavision, History en Español, PBS Kids Sprout, and We are also included.)

For channels like Bio, Chiller, Current, and Reelz — buried in Digital Channel Siberia on the cable dial only to be found by the most ardent channel surfers — getting a prominent place on an app with just a few dozen channels competing for viewers is exposure gold.

We’ve tested the app here at STC HQ and found the picture quality and responsiveness to be excellent.  Channel changing is nearly as fast on the app as it is on our set top box — quite an accomplishment.  But the restrictions imposed by Time Warner really limit the app’s usefulness.  After all, if you want to watch television at home, why reach for an iPad when your television remote control is nearby.  But for those without digital cable boxes, or who want to wander around the house while watching, Time Warner’s app is useful, and better yet — free to those who already subscribe to cable television.