Menino

Boston Mayor Thomas Menino has problems with Comcast.  The cable operator, long a dominant player in the city of Boston, has been raising basic cable prices for the last several years, and the mayor’s office has had enough.  This week Menino filed a petition asking the Federal Communications Commission to give the city “emergency control” over the price of basic cable service in Boston — the only control permitted in the largely deregulated cable television marketplace.

Menino waved a study done at the behest of the city showing residents were paying substantially higher prices for the lowest level of service from Comcast.  Basic Service, which includes 37 local over the air stations and a handful of shopping and public access channels costs $15.80 inside city limits — up from $9.05 in 2009.  In nearby Cambridge, the same service costs $7.30 a month.  What’s the difference?  Cable rates are completely deregulated in the city, but smaller communities around Boston lack sufficient meaningful competition, so they are permitted by law to continue regulating rates for the lowest tier: Basic Service.

Now Menino wants those rates brought back under control for the benefit of seniors and low income residents, among the 10,000-15,000 local homes that subscribe to the economy service.

It’s just the latest challenge for Boston, which is among a few cities along the coast of the northeastern United States not benefiting from aggressive broadband and video competition between the phone and cable company.  Just over 200 miles away, metropolitan New York and the bedroom communities in that state, as well as New Jersey and Connecticut, have access to super fast broadband from Verizon FiOS, Time Warner Cable, Cablevision, and Comcast — the latter predominately serving greater Philadelphia.

Boston has been bypassed for Verizon FiOS, is ignored by other potential cable competitors, and is stuck with poor-performing cable overbuilder – RCN, which has focused most of its efforts on multi-dwelling apartment and condo units in the city.  The rest of Boston gets ‘take it or leave it’ service from Comcast or DSL from Verizon.

Comcast was quick to respond to Menino’s call for reregulation, noting they provide $5 senior discounts for their cable customers and offer cheaper service than the alternatives — $17.50 a month from RCN or between $30-35 for promotions from DirecTV and DISH Satellite.

Menino’s dealings with telecommunications companies in Boston have run hot and cold for years.  In February, Menino appeared with Comcast senior vice president Steve Hackley to celebrate the opening of a Digital Connectors program for up to 2,800 low income households, paid for by federal stimulus grant money.  Under the program, students who complete computer training courses receive discounted Comcast Internet service for $10.95 a month for the first year and $15.95 for the second year.

Boston

Menino’s office has often been a watchdog when it comes to Comcast fulfilling its franchise obligations, and the city had high hopes competition from RCN would extend a choice of cable providers to most city residents.  That has not happened.

The city’s other telecommunications provider, Verizon, has been in contention with the city for several years.  The trouble began in 2007 when Menino declared war on property tax exemptions for utility poles dating back to 1915, granted to telecom companies like Verizon.  Four years later, that battle has culminated in Verizon literally wiring its fiber optic FiOS service around the city of Boston, refusing to deliver service inside it.

The promise of Verizon fiber has often gone unfulfilled or delayed in many larger cities, subject to bureaucratic delays not experienced in smaller communities.  Some towns and villages in Massachusetts signed franchise agreements just a few months after the company came knocking.

One local official, not authorized to speak publicly on the matter, told Stop the Cap! many communities welcomed Verizon’s fiber optic initiative with open arms.

“You have to understand there is a different mentality among government officials in smaller towns than there is among larger cities,” the official tells us. “In our town of 35,000 when Verizon offered to wire competitive service in our area, we wanted to know where to sign and when they could get started.”

The official says the local government was concerned about making sure Verizon repaired any damage to local infrastructure, abided by local zoning rules, and guaranteed they would not bypass parts of the town.  Negotiators also fought for funding to upgrade equipment for the community’s public access channels, but never went into the negotiations thinking about how much they could extract from the phone company.

“In larger cities in this state, there is a definite mentality that Verizon represents a golden goose ready and willing to lay golden eggs in return for franchise agreements,” the official told us.  “Maybe that is true, but when you are in a smaller town, you recognize the degree of willingness to invest capital to tear out old wires and replace them with fiber is far less here than a city like Boston, which has the potential of many more customers.”

Boston, like other large cities, prepared for protracted negotiations with the phone company over the new fiber service.  At the same time, Mayor Menino infuriated Verizon when he won his property tax lawsuit against the company, collecting $5 million in tax payments that one city official rubbed in.

Ronald W. Rakow, Boston’s commissioner of assessing, told the Boston Globe at the time: “We will actually be sending a bill to them for that later today,’’ Rakow said. “Don’t want to let the ink dry.’’

No Verizon FiOS for Boston

The argument over property taxes may have been the final straw for Verizon FiOS in Boston.  Menino suspected as much, telling the Globe “they insinuated that we weren’t going to get it because of my position on telecommunications.’’

Even then-Verizon CEO Ivan Seidenberg warned the city during a speech at the Boston College Chief Executives’ Club of Boston “to be careful when considering new taxes or regulations.”

Verizon has since stopped expanding its FiOS service to new cities.

“We knew as the financial crisis grew we were smart to sign up earlier rather than later, because if we didn’t, we would never have the service today,” the local official tells us.  “I have sympathy with local officials in every city trying to do what is best for their residents, but anyone who understands wired telecommunications should know these kinds of projects are exceedingly rare — grab them when you have the chance.”

Just a few years later, the impact of earlier decisions not to hurry competition into the city of Boston and the city’s tax policies have become clear:

• Comcast may be forced to reduce their Basic Service rate, but nothing prevents them from increasing Digital Service cable rates to make up the difference;
• RCN’s network has languished, providing competitive choice to just 15,000 local residents.  Comcast serves at least 170,000;
• Verizon has no plans to offer FiOS in the city indefinitely;
• Menino’s victory claim that Verizon should pay its fair share in property taxes seems less victorious today as the phone company began passing on the new taxes to ratepayers as a “Massachusetts Property Tax Recovery Surcharge” in March, 2010.
• No other competitor has appeared on the horizon willing to take on Comcast in the city of Boston.

With Time Warner Cable’s broadband now running as high as $50 a month for standard, stand-alone service, getting the best deal possible can save you as much as $20 a month off those prices.  Time Warner Cable has been repricing their services to deliver the most value to customers who bundle all of the company’s products into a single package.  But if you don’t want television or telephone service from the cable company, you are going to pay a lot more than your service-bundled-neighbors for Road Runner High Speed Internet.

Stop the Cap! presents our strategy to help broadband-only customers get the best possible prices from Time Warner Cable:

Choose Earthlink

Customers paying Time Warner Cable’s regular prices for broadband service are paying too much.  Time Warner currently charges just short of $50 a month for Standard 10/1Mbps service (speeds are slower in some areas).  That’s up from years of charging $40 a month, slightly higher if you were a broadband-only customer.  But with the help of Earthlink, you can cut that broadband bill to $29.99 a month for the first six months.  Earthlink co-exists with Road Runner, Time Warner Cable’s own broadband service.  With just a few mouse clicks and a quick phone call, Time Warner can switch your regular price Road Runner to Earthlink without any equipment changes.  Billing and service will continue to be provided by Time Warner and the change literally takes less than five minutes by phone.

Earthlink’s broadband service is indistinguishable from Road Runner — same speeds, same level of service, with two exceptions:

• Earthlink does not benefit from PowerBoost, which delivers temporary speed increases during file downloads
• You will forfeit your rr.com e-mail address

We recommend you avoid using ISP-provided e-mail addresses when possible, because they help tie you down to an existing provider.  Instead, sign up for a free e-mail account from Google’s Gmail, or Yahoo! Mail, or any of the dozens of other web-based e-mail providers.  Or, purchase your own domain name from GoDaddy or 1and1, which includes e-mail, and either read it on those sites or forward it to a web-based e-mail provider.  Domain names can be had for under $10 a year and deliver maximum flexibility for those who want the freedom to change Internet providers.

After Six Months, Switch Back to Road Runner

When your Earthlink promotion expires at the end of six months, your price will increase to $41.95 per month.  Just before that happens, switch back to Time Warner Cable’s Road Runner service.  You qualify for new customer pricing promotions.  As of this week, Time Warner Cable in western New York is offering one year at $29.99 per month for 10/1Mbps service.  Other areas may have different pricing promotions.

After the year is up, you can start all over again, heading back to Earthlink for another six month promotional term.  Earthlink has offered its promotional plan for more than two years, and it shows no signs of ending anytime soon.

Promotional Half-Truths

Promotions come and go from Time Warner Cable, so it is wise to check with them often if the $29.99 deal is not currently running in your area.  Start by checking Time Warner Cable’s website, and remember if you are using Earthlink, you will want to select pricing for new customers.  If you find a good price on the website, you may be able to complete your order online.  Otherwise, call your local office and ask about currently running promotions.  Some common ones:

• Road Runner Turbo at 50% off for the first year;
• Road Runner Turbo free for six months;
• Road Runner with wireless router/modem free for six months to one year;
• Road Runner with free installation (especially useful if you want Road Runner Extreme/Wideband service, which carries a pricey installation fee);
• Road Runner for $29.99 for six months;
• Bundled promotions — $99 for all three services, $79 for broadband/cable or broadband/phone

Not every promotion delivers the best deal for customers, and some have been slightly deceptive, such as this speed comparison we found on the cable company’s website this morning:

Our View:

1. Time Warner Cable has been spanked before for their claims about running a “fiber network.”  In fact, their “Fiber Rich Network” is a marketing stretch.  All modern cable systems use fiber optics to help distribute their service into various communities, but coaxial copper cable delivers the signal through neighborhoods to your individual home.  Cable companies still cannot match the broadband speeds available on an all-fiber network.
2. “Powertasking” is a meaningless marketing claim.  Any high speed network will allow the entire family to effectively share a broadband connection.
3. We’re glad to know Time Warner Cable has “massive bandwidth” — more than enough to go around.  We’ll remember that if and when the company ever entertains bringing back their experimental Internet Overcharging scheme they claimed was necessary to pay for equipment upgrades to cope with broadband traffic growth.
4. It would be simpler to install Time Warner’s DOCSIS 3 upgrade if we could do it ourselves, but the cable company currently requires a mandatory service call ($67.98 fee) to install it.
5. Time Warner is being cute comparing their broadband speed with Verizon FiOS.  In fact, FiOS is faster because of what isn’t mentioned here — upstream speeds.  Time Warner tops out at 5Mbps, Verizon offers 20Mbps for uploads.  But Time Warner’s pricing is better at that download speed.  Verizon is more aggressively priced when they bundle services together.  For example, Time Warner’s $99 triple play bundle only offers 10/1Mbps service.  Verizon offers up to 25/25Mbps service for the same price.  Both include phone and television service.

Naughty! (Unless you pay extra)

Wireless carriers want you to pay them extra if you use your phone’s built-in Wi-Fi hotspot feature to share wireless data with your other devices.  Now Verizon and T-Mobile are joining AT&T in shutting down some loopholes that allowed third party applications to deliver tethering service at no additional monthly charge.

The first step in locking down tethering is removing easy access to applications that allow it to happen.  As of this week, access to the most popular tethering apps, including Easy Tether, Internet Sharer, Klink, PDAnet and Tether for Android have been blocked from the Android Market, which means customers can only install these applications using a complicated process to manually install the software.

The next step, already underway at AT&T, is to identify and warn customers using these “unauthorized” apps that they are violating the terms of their wireless contract.

AT&T customers began receiving text messages warning them that the company’s own tethering plan would be automatically added to their accounts if tethering continued.  Verizon has not gone that far yet, but T-Mobile has, sending warnings and blocking access for customers who are not paying an additional $14.99 a month for the service, currently unlimited.

Verizon Wireless customers will have to pay $20 a month for up to 2GB of access, each additional gigabyte priced at $20.

AT&T customers can add tethering for an additional $15 (for 200MB), with additional plans delivering more access for more money.

Google, responsible for administering the Android Market, notes it is not “blocking” the app, merely making it “unavailable for download at the request of wireless carriers” — a distinction without a difference for most consumers.

5-10-2011 Correction:  AT&T’s website claims you need the 4GB DataPro plan for Smartphone tethering, which provides an allowance of 4GB of data for $45 a month, with a $10/GB overlimit fee per GB over.

Verizon 4G users across the country are still without their super-fast wireless service thanks to a major outage that wiped the LTE network out for users of the HTC Thunderbolt, Samsung Charge, and mobile broadband units from Novatel and Samsung.

The network has been down since late Tuesday evening, and Verizon took their sweet time telling customers, only admitting the outage after media outlets began reporting on it.

Verizon Wireless spokesman Jeffrey Nelson says 4G users are temporarily being punished with data sessions that use Verizon’s ancient 1XRTT data connection — largely worthless for most broadband apps:

We are aware of an issue with 4G LTE data connections and our network engineers are working to resolve this quickly. We have determined the cause of our issue and are working with our major vendors to restore connections.

• 4G LTE Smartphones will still be able to make calls.
• Customers are temporarily unable to activate any 4G LTE devices.
• Please note: Customers may experience a 1XRTT data connection during this time.
• After determining the cause of our 4G LTE network connection issue, we are continuing to work to restore connections.
• We expect to see the network restored on a market-by-market basis. Timing and additional details will be provided as they become available.

Lucky for Verizon comparatively few customers rely on LTE service.  As of late Wednesday evening, the service remains down.

It has been some time since major carriers like Verizon have promoted “unlimited use” plans for broadband.  Not too many years ago, providers used “unlimited” as a major selling point for those looking to escape slower, time-limited, dial-up access.  Today, Verizon is back pitching unlimited DSL at prices as low as $14.99 per month, if you still happen to have your Verizon landline.

Verizon’s DSL pricing changes include two new price tiers for current landline customers and for those who don’t want landline service.  No annual plan contracts are required, and prices are good for one year.

For Verizon landline customers:
500 Kbps to 1.0 Mbps – $19.99 ($14.99 when ordered online)
Either 1.1-3 Mbps, 3.1-7 Mbps or 7.1-15 Mbps (speed level will depend on line quality) – $34.99 ($29.99 when ordered online)

For those who only want broadband service, prices are considerably higher:
500 Kbps to 1.0 Mbps – $29.99 ($24.99 when ordered online)
Either 1.1-3 Mbps, 3.1-7 Mbps or 7.1-15 Mbps (speed level will depend on line quality) – $44.99 ($39.99 when ordered online)

Verizon really wants customers to order service online, and will throw in a free wireless router when you do.  Activation and shipping charges may apply.  Customers also get free access at Verizon Wi-Fi locations.

Verizon is pitching these services to customers who don’t want to deal with “clogged networks or exceeding monthly dial-up time limits.”

These prices are similar to discounts AT&T offered its DSL customers last year.  It’s an effort to maintain revenue and attract price-sensitive rural holdouts who avoid more expensive broadband plans.  Verizon simultaneously announced a new pseudo-“triple play” package for areas without its FiOS fiber to the home service that uses Verizon’s network for phone and broadband service, and DirecTV for television.

“We’ve enhanced the value and simplified our HSI bundles by pricing them aggressively and removing any contract requirements and early termination fees for Verizon services going forward,” said Eric Bruno, Verizon vice president of product management.  “With these refinements, our High Speed Internet service offers the best value in broadband.”

Bruno forgets when adding new DirecTV services to a Verizon phone and broadband bundle, a two-year agreement and early cancellation fees with the satellite company will apply.

Customers contemplating service who disconnected their Verizon landline can sign up for Verizon’s least expensive landline service — the one with no local calling allowance.  Outgoing calls are billed on a per-call basis in most areas, and the monthly charge for the service can be under $10, depending on the size of your calling area.