Phillip DampierMarch 5, 2014Consumer NewsComments Off on Bad Timing: Time Warner Cable Dropping RT As Ukraine Boils
Across the country, Time Warner Cable subscribers are losing access to RT – Russia Today, just as tensions rise between governments in Moscow and Kiev.
The 24-hour news and information channel funded by the Kremlin’s Federal Agency on Press and Mass Communications of the Russian Federation, provides news and views from across Russia, as well as a full schedule of international affairs and political/opinion programming, some produced in the United States. The network has been the subject of criticism for its coverage, which some believe is biased in favor of the Putin government’s world view.
Some Time Warner Cable systems dropped the network in January, but others are switching the network off this month. Time Warner Cable did not announce the channel drop in upstate New York and has no explanation for the reason the network was discontinued.
Customers still interested in watching the network can find a live stream of RT available free of charge on the network’s website.
The loss of RT will not result in a lower cable bill. Time Warner Cable recently added Al Jazeera America to most of its cable systems and is planning to add a number of new channels this month:
Liquidation Channel: A 24/7 home shopping and auction channel featuring jewelry and accessories;
EPIX: A premium movie channel. TWC will add: EPIX1 East, EPIX1 EAST HD, EPIX1 West, EPIX1 WEST HD, EPIX 2, EPIX 2 HD, EPIX 3, EPIX 3 HD and EPIX Drive-In March 18;
TWC Sportsnet Los Angeles SD & HD arrives at the end of this month;
TVG: A horse racing and online horse betting network. Coming April 1;
Vivid TV: A hardcore porn channel featuring titles produced by studio Vivid Entertainment
Time Warner is realigning almost every channel numbered over 100 into new theme-based categories to help customers find programming more easily. When the changes are complete, customers across the country will find most of the same networks on the same channel numbers regardless of where they live. Channels numbered 1-99 are not changing.
The new national unified lineup could mean more channels for some. For example, customers in Rochester will begin to receive several time-shifted west coast feeds of premium movie channels, the addition of Chinese Central State Television’s English language news network, Esquire TV, QVC Plus, Women’s Entertainment SD/HD (We), and the reintroduction of the Game Show Network. ESPN 3D is being dropped.
The channel changes are causing some controversy in Albany because Time Warner is moving adult networks including Hustler TV, Penthouse On Demand, Manhandle, and Outrageous TV to channel positions that will soon be vacated by Albany’s local broadcast stations.
Oct. 10: Battenkill, Clifton Park, Crown Point, Glens Falls, Hague, Hoosick, Port Henry, Putnam, Queensbury, Saratoga Springs, Schroon Lake, Ticonderoga, and Troy, N.Y.
Oct. 10: Great Barrington, Lee, Lenox, North Adams, Pittsfield, Sheffield, and Stockbridge, Mass.
Oct. 15: Rochester and its nearby suburbs across most of Monroe County, N.Y.
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Time Warner Cable introduces customers to their new unified nationwide television lineup, coming soon to your Time Warner Cable system. (2 minutes)
The new genre categories and their channel numbers:
Genre
Starting at
Genre
Starting at
Entertainment
Ch. 100
Movie Channels
Ch. 600
Life & Style
Ch. 160
Pay-Per-View + 3D
Ch. 650
News & Info
Ch. 200
Sports Packages
Ch. 700
Kids & Teens
Ch. 250
Latino
Ch. 800
Music
Ch. 285
On Demand
Ch. 1000
Sports
Ch. 300
Local Programming
Ch. 1200
Inspiration
Ch. 460
International
Ch. 1400
Shopping
Ch. 480
Adult
Ch. 1800
Movies On Demand
Ch. 500
Radio
Ch. 1900
Premiums
Ch. 510
TWC Info
Ch. 1998
The new lineup no longer includes separate HD and SD channels of each network. Instead, Time Warner’s HD set-top boxes will be programmed to show the best signal available, usually HD. SD converters, meanwhile, will show only SD channels.
Time Warner Cable premiered its new lineup in Syracuse and surrounding areas in central New York back in June. The company will continue to gradually roll out the channel changes in other cities this fall and winter.
WRGB in Albany reports some Time Warner customers looking for their local television stations after the channel realignment will instead end up on the cable company’s adult entertainment tier, invited to subscribe with the push of a few buttons on the remote control. (2 minutes)
The New York State Public Service Commission has announced it will hold public hearings in Ocean Beach in Suffolk County, N.Y. to hear from angry Fire Island residents and others about their evaluation of Verizon’s controversial wireless landline replacement Voice Link, which Verizon hopes to eventually install in rural areas across its operating territories.
“Verizon needs to stop lying,” said Fire Island resident Debi May who lost phone service last fall after Hurricane Sandy damaged the local network. “Don’t tell me you can’t fix my landline service. Tell me you won’t.”
She is one of hundreds of Fire Island residents spending the summer without landline service, relying on spotty cellular service, or using Verizon’s wireless landline alternative Voice Link, which many say simply does not work as advertised. In July, the CWA asserted Verizon is trying to introduce Voice Link in upstate New York, including in the Catskills and in and around Watertown and Buffalo.
“I’ve been on the phone with Verizon all day,” Jason Little, owner of the popular Fire Island haunt Bocce Beach tells The Village Voice. The restaurant’s phone line and DSL service is down again. Just like last week. And three weeks before that. Like always, Verizon’s customer service representatives engage in the futility of scheduling a service call that will never actually happen. Verizon doesn’t bother to show up in this section of Fire Island anymore, reports Little.
“They never come,” he says. So he sits and waits for the service to work its way back on its own — the result of damaged infrastructure Verizon refuses to repair any longer. Until it does, accepting credit cards is a big problem for Little.
It’s the same story down the street at the beachwear boutique A Summer Place. Instead of showing customers the latest summer fashions, owner Roberta Smith struggles her away around Verizon’s abandonment of landline service. She even purchased the recommended wireless credit card machine to process transactions, but that only works as well as Verizon Wireless’ service on the island, which can vary depending on location and traffic demands.
Smith tells the newspaper at least half the time, Verizon’s wireless network is so slow the machine stops working. If she can’t reach the credit card authorization center over a crackly, zero bar Verizon Wireless cell phone, the customer might walk, abandoning the sale.
National Public Radio reports Verizon’s efforts to abandon landline service on Fire Island and in certain New Jersey communities is just the first step towards retiring rural landline service in high cost areas. But does Verizon Voice Link actually work? Local residents say it doesn’t work well enough. NPR allows listeners to hear the sound quality of Voice Link for themselves. (5 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.
Verizon’s decision is making life hard for Fire Island’s small businesses.
The Village Voice notes Verizon CEO Lowell McAdam didn’t make the decision to scrap rural copper wire landline service to improve things for customers. He did it for the company.
“The decision wasn’t motivated by customer demand so much as McAdam’s interest in increasing Verizon’s profit margins,” the Voice writes.
Tom Maguire, Verizon’s point man for Voice Link, has not endeared himself with local residents by suggesting Fire Island shoppers should get around the credit card problem by bringing cash.
“Remember what happened to Marie Antoinette when she said ‘let them eat cake’,” suggested one.
For some customers who appreciate the phone company’s cost arguments, Verizon’s wireless alternative wouldn’t be so bad if it didn’t work so bad.
“It has all the problems of a cellphone system, but none of the advantages,” Pat Briody, a homeowner on Fire Island for 40 years told NPR News.
“I don’t think there’s anyone who will tell you Voice Link is better than the copper wire,” says Steve Kunreuther, treasurer of the Saltaire Yacht Club.
Jean Ufer says her husbands’ pacemaker depends on landline service to report in on his medical condition.
“Voice Link doesn’t work here,” reports resident Jean Ufer, whose husband depends on a pacemaker that must “check in” with medical staff over a landline the Ufer family no longer has. “It constantly breaks down. Everybody who has it hates it. You can’t do faxes. You can’t do the medical stuff you need. We need what we had back.”
Residents who depended on unlimited broadband access from Verizon’s DSL service are being bill-shocked by Verizon’s only broadband replacement option – expensive 4G wireless hotspot service from Verizon Wireless.
Small business owner Alessandro Anderes-Bologna used to have DSL service from Verizon until Hurricane Sandy obliterated Verizon’s infrastructure across parts of the western half of Fire Island. Today he relies on what he calls poor service from Verizon Wireless’ 4G LTE network, which he claims is hopelessly overloaded because of tourist traffic and insufficient capacity. But more impressive are Anderes-Bologna’s estimates of what Verizon Wireless wants to charge him for substandard wireless broadband.
“My bill with Verizon Wireless would probably be in the range of $700-800 a month,” Anderes-Bologna said. That is considerably higher than the $29.99 a month Verizon typically charges for its fastest unlimited DSL option on Fire Island.
Despite the enormous difference in price, Verizon’s Maguire has no problems with Verizon Wireless’ prices for its virtual broadband monopoly on the landline-less sections of the island.
“It’s a closed community,” he says. “It’s the quintessential marketplace where you get to charge what the market will bear, so all the shops get to charge whatever they want.” And that’s exactly what Verizon is doing.
WCBS Radio reports Verizon is introducing Voice Link in certain barrier island communities in New Jersey. But the service lacks important features landline users have been long accustomed to having. (1 minute)
You must remain on this page to hear the clip, or you can download the clip and listen later.
“The New Jersey coast has been battered enough,” said Douglas Johnston, AARP New Jersey’s manager of advocacy. “The last thing we need is second-class phone service at the Shore. We are concerned that approval of Verizon’s plans could further the gap between the telecommunications ‘haves’ and ‘have-nots’ and could create an incentive for Verizon to neglect the maintenance and repair of its landline phone network in New Jersey.”
In some cases, Verizon has told customers they can get landline phone service from Comcast, a competitor, instead.
State consumer advocates note that other utilities including cable operators have undertaken repair, replacement, and restoration of facilities in both New York and New Jersey without the challenges Verizon claims it has.
“Only Verizon, without evidentiary support, is seeking to jettison its obligations to provide safe, proper and adequate service to the public,” wrote the New Jersey Rate Counsel in a filing with the Federal Communications Commission.
New York Senator Phil Boyle, who represents Fire Island residents, is hosting a town hall meeting tonight to discuss the move by Verizon to replace copper-wire phone lines on Fire Island with Voice Link. The meeting will be held at the Ocean Beach Community House in Ocean Beach from 5-7pm.
The New York State Public Service Commission will be at the same location Saturday, Aug. 24 starting at noon for a public statement hearing to hear from customers about how Verizon Voice Link is working for them.
It is not necessary to make an appointment in advance or to present written material to speak at the public statement hearing. Anyone with a view about Voice Link, whether they live on the island or not are welcome to attend. Speakers will be called after completing a card requesting time to speak. Disabled persons requiring special accommodations may place a collect call to the Department of Public Service’s Human Resources Management Office at (518) 474-2520 as soon as possible. TDD users may request a sign language interpreter by placing a call through the New York Relay Service at 711 to reach the Department of Public Service’s Human Resource Office at the previously mentioned number.
Fire Island
Those who cannot attend in person at the Community House, 157-164 Bay Walk, Ocean Beach can send comments about Voice Link to the PSC online, by phone, or through the mail.
U.S. Mail: Secretary, Public Service Commission, Three Empire State Plaza, Albany, New York 12223-1350
24 Hour Toll-Free Opinion Line (N.Y. residents only): 1-800-335-2120
Your comments should refer to “Case 13-C-0197 – Voice Link on Fire Island.” All comments are requested by Sept. 13, 2013. Comments will become part of the record considered by the Commission and will be published online and accessible by clicking on the “Public Comments” tab.
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Al Jazeera reports Fire Island residents are fighting to keep their landlines, especially after having bad experiences with Verizon Voice Link. (3 minutes)
Frontier is enticing Rochester-area customers to “say goodbye to Time Warner Cable.”
Time Warner Cable’s relentless rate increases, particularly on its broadband service, are leading to calls for more competition in the upstate New York cities of Buffalo and Rochester, now dominated by Time Warner, Verizon Communications (Buffalo), and Frontier Communications (Rochester).
“Bloodsuckers,” came the terse reply of Cathy Slocum.
Frontier Communications is making the most out of the cable company rate increases with a new “Goodbye Time Warner” ad campaign (that incidentally includes a link to Stop the Cap!’s coverage of TWC’s modem fee). It is pitching $19.99 broadband price-locked for two years — an improvement over its earlier offers thanks to a major reduction in sneaky fine print.
Customers can get up to 6Mbps service (up to 12Mbps available in limited areas) at the special offer price as long as they keep a Frontier landline active with a qualifying calling package. There are no contracts with this promotion, but Frontier’s pesky $9.99 “Broadband Processing Fee” applies if customers ever choose to disconnect Internet service. A free Wi-Fi Internet router is included and the company claims it offers “free Internet activation.” But an installation fee still applies, discounted if customers choose the self-install option. Taxes, governmental and other Frontier-imposed surcharges also apply and new Frontier customers are subject to credit approval, which will show up as an inquiry on your credit report.
In the past, we have taken Frontier to task for its expensive early termination and modem rental fees, as well as its bundling requirements, but the company has since ditched most of these as part of its new self-proclaimed reputation as “BS free.”
Unfortunately, Frontier’s DSL speeds can wildly vary, so if you take advantage of their offer, be sure to verify the speed actually get at your home or office. If the service proves too slow to your liking after installation, you can negotiate canceling within the first two weeks without any termination fees.
Where FiOS is available in Buffalo, Verizon is offering promotional pricing on its bundled services, including an $84.99 offer including 50/25Mbps Internet with a Verizon landline offering unlimited calling. This is cheaper than Time Warner’s offer with considerably faster upload speeds and no modem fees. In parts of Buffalo, Verizon is authorized to offer broadband and phone service only, although several suburbs have franchise agreements that allow the phone company to also sell television service. A large part of the city and other suburbs are still stuck with Verizon’s copper network, however, which means DSL is the best they can offer.
Time Warner Cable’s new customer promotions, useful when negotiating a customer retention deal, have resumed bundling Standard tier (15/1Mbps service) Internet speeds into most offers. Previously, the company bundled 3Mbps service in many of its promotions. Broadband-only customers can pay as little as $34.99 a month for a year of Internet service at 15/1Mbps speeds, assuming one buys their own cable modem. A double play offer of broadband basic television (around 20 channels, mostly local over-the-air) with 30/5Mbps Internet service is now priced at $94.97 a month after a $5.99 mandatory modem rental fee is included (not optional with this package).
Time Warner Cable executives have repeatedly told investors its higher priced promotions are intentional to increase revenue and profits even if the company loses customers by charging higher prices.
Verizon FiOS offers in the Buffalo area.
“I moved here from the New York City area a year ago where we had two cable companies — Cablevision and Verizon FiOS,” noted Stephen O’Brien. “Competition changes everything. Not only were the rates much lower than here, the companies would offer you all kinds of incentives to switch from one to the other. One time we switched and got a free iPod Touch. The argument that the rate increase is needed to cover investment is the biggest red herring of all — Cablevision and FiOS spent many times more on infrastructure, yet their rates were much lower.”
Stop the Cap! recommends Time Warner Cable customers check out our guide to getting the best deal possible from TWC.
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WGRZ in Buffalo reports upstate New York residents are upset about two recently announced broadband rate hikes. Time Warner Cable says it needs the money to keep up its broadband service’s reliability. What alternatives do customers have? (2 minutes)
Although cable and phone companies love to declare themselves part of a fiercely competitive telecommunications marketplace, it is increasingly clear that is more fairy tale than reality, with each staking out their respective market niches to live financially comfortable ever-after.
In the last week, Time Warner Cable managed to alienate its broadband customers announcing another rate increase and a near-doubling of the modem rental fee the company only introduced as its newest money-maker last fall. What used to cost $3.95 a month will be $5.99 by August.
“They already get almost $60 a month from me for Internet service that cuts out for almost an entire day and now they want more?” asked Albany-area customer Randy Dexter. “If Verizon FiOS was available here, I’d toss Time Warner out of my house for good.”
Alas, the broadband magic sparkle ponies have not brought Dexter or millions of other New Yorkers the top-rated fiber optic network Verizon stopped expanding several years ago. The Wall Street dragons complained about the cost of stringing fiber. Competition, it seems, is bad for business.
In fact, Verizon Wireless and Time Warner Cable are now best friends. Verizon Wireless customers can get a fine deal — not on Verizon’s own FiOS service — but on Time Warner’s cable TV. Time Warner Cable originally thought about getting into the wireless phone business, but it was too expensive. It invites customers to sign up for Verizon Wireless service instead.
This is hardly a “War of the Roses” relationship either. Wall Street teaches that price wars are expensive and competitive shouting matches do not represent a win-win scenario for companies and their shareholders. The two companies get along fine where Verizon has virtually given up on DSL. Time Warner Cable actually faces more competition from AT&T’s U-verse, which is not saying much. The obvious conclusion: unless you happen to live in a FiOS service area, the best deals and fastest broadband speeds are not for you.
Further upstate in the Rochester-Finger Lakes Region, Time Warner Cable faces an even smaller threat from Frontier Communications. It’s a market share battle akin to United States Cable fighting a war against Uzbekistan Telephone. Frontier’s network in upstate New York is rich in copper and very low in fiber. Frontier has lost landline customers for years and until very recently its broadband DSL offerings have been so unattractive, they are a marketplace afterthought.
Think about this fact: Time Warner, which raked in more than $21 billion last year, has 700,000 subscribers in the Buffalo and Rochester markets. I’m not sure how many of those are businesses. But the Western New York market has 875,000 households. That’s an astounding market penetration. Does this mean Time Warner is the best choice or the least worse option?
That means Time Warner Cable has an 80 percent market share. Actually, it is probably higher because that total number of households includes those who either don’t want, need, or can’t afford broadband service. Some may also rely on limited wireless broadband services from Clearwire or one of the large cell phone companies.
In light of cable’s broadband successes, it is no surprise Time Warner is able to set prices and raise them at will. Barnhart, who has broadband-only service, is currently paying Time Warner $37.99 a month for “Lite” service, since reclassified as 1/1Mbps. That does not include the modem rental fee or the forthcoming $3 rate hike. Taken together, “Lite” Internet is getting pricey in western New York at $47 a month.
Retiring CEO Glenn Britt believes there is still money yet to be milked out of subscribers. In addition to believing cable modem rental fees are a growth industry, Britt also wants customers to begin thinking about “the usage component” of broadband service. That is code language for consumption-based billing — a system that imposes an arbitrary usage limit on customers, usually at current pricing levels, with steep fees for exceeding that allowance.
Rochester remains a happy hunting ground for Internet Overcharging schemes because the only practical, alternative broadband supplier is Frontier Communications, which Time Warner Cable these days dismisses as an afterthought (remember that 80 percent market share). Without a strong competitor, Time Warner has no problem experimenting with new “usage”-priced tiers.
Time Warner persists with its usage priced plans, despite the fact customers overwhelmingly have told the company they don’t want them. Time Warner’s current discount offer — $5 off any broadband tier if you keep usage under 5GB a month, has been a complete marketing failure. Despite that, Time Warner is back with a slightly better offer — $8 off that 5GB usage tier and adding a new 30GB usage limited option in the Rochester market. We have since learned customers signing up for that 30GB limit will get $5 off their broadband service.
In nearby Ohio, the average broadband user already exceeds Time Warner’s 30GB pittance allowance, using 52GB a month. Under both plans, customers who exceed their allowance are charged $1 per GB, with overlimit fees currently not to exceed $25 per month. That 30GB plan would end up costing customers an extra $22 a month above the regular, unlimited plan. So much for the $5 savings.
Unfortunately, as long as Time Warner has an 80 percent market share, the same mentality that makes ever-rising modem rental fees worthwhile might also one day give the cable company courage to remove the word “optional” from those usage limited plans. With usage nearly doubling every year, Time Warner might see consumption billing as its maximum moneymaker.
In 2009, Time Warner valued unlimited-use Internet at $150 as month, which is what they planned to charge before pitchfork and torch-wielding customers turned up outside their offices.
Considering the company already earns 95 percent gross margin on broadband service before the latest round of price increases, one has to ask exactly when the company will be satisfied it is earning enough from broadband service. I fear the answer will be “never,” which is why it is imperative that robust competition exist in the broadband market to keep prices in check.
Unfortunately, as long as Wall Street and providers decide competition is too hard and too unprofitable, the price increases will continue.
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