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As Usual, Big Telecom in the Running for Worst Company in America 2014

Phillip Dampier March 26, 2014 AT&T, Comcast/Xfinity, Competition, Consumer News, Editorial & Site News, Verizon Comments Off on As Usual, Big Telecom in the Running for Worst Company in America 2014

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Our friends at The Consumerist invite you to participate in the 2014 Worst Company in America contest. Readers are invited to cast a series of votes — one each day — to help narrow the field to the truly abysmal, the god-awful, and the despised. The ultimate winner receives the Golden Poo award.

Not surprisingly, the nation’s biggest telecom companies are among the regular finalists. The big ones are all there — Comcast, Time Warner Cable, Verizon, and AT&T.

Hated cable companies frequently beat down big banks like the vipers at Chase, where settlements in the hundreds of millions with the government for wrongdoing are almost a monthly occurrence. Voters would rather fly the Unfriendly Skies with Divided Airlines, Last Frontier Air — even US Scare — than deal with Comcast’s offshore customer service. The bad boys at Electronic Arts and Koch Industries bring knives to AT&T’s gunfight on good customer relations.

Over the last eight years, Comcast turned up as the big winner of the Golden Poo award in 2010 and either runner-up or third place in 2008, 2009, 2011, and 2013. AT&T achieved third place in 2012. Time Warner Cable and Verizon are usually eliminated in the finals, but their regular appearance on the nominations list is not something they can be proud of. Time Warner Cable has already managed to beat back EA, big winner in 2012 and 2013. So this year they might go all the way to the top… or is it bottom?

Year Winner Runner-up Third place
2006 Halliburton Choicepoint Wal-Mart and US Government
2007 RIAA Halliburton Wal-Mart and Exxon
2008 Countrywide Financial Comcast Diebold and Wal-Mart
2009 AIG Comcast Bank of America and Ticketmaster
2010 Comcast Cash4Gold Bank of America and Ticketmaster
2011 BP Bank of America Comcast and Ticketmaster
2012 Electronic Arts Bank of America AT&T and Wal-Mart
2013 Electronic Arts Bank of America Comcast

Time Warner Cable, Comcast Crash, Burn in Consumer Reports’ 2014 Ratings

consumer reportsDespite claims of improved customer service and better broadband, Comcast and Time Warner Cable’s customer satisfaction scores are in near-free fall in the latest Consumer Reports National Research Center’s survey of consumers about their experiences with television and Internet services.

Although never popular with customers, both cable operators plummeted in the 2014 Consumer Reports ratings — Time Warner Cable is now only marginally above the perennial consumer disaster that is Mediacom. Comcast performs only slightly better.

In the view of Consumers Union, this provides ample evidence that two wrongs never make a right.

“Both Comcast and Time Warner Cable rank very poorly with consumers when it comes to value for the money and have earned low ratings for customer support,” said Delara Derakhshani.  “A merger combining these two huge companies would give Comcast even greater control over the cable and broadband Internet markets, leading to higher prices, fewer choices, and worse customer service for consumers.”

These ratings reflect Internet service only.

These ratings reflect Internet service only.

Comcast ranked 15th among 17 television service providers included in the ratings and earned particularly low marks from consumers for value for the money and customer support.  Time Warner ranked 16th overall for television service with particularly low ratings for value, reliability, and phone/online customer support.

Another ratings collapse for Comcast and Time Warner Cable

Another ratings collapse for Comcast and Time Warner Cable

Comcast and Time Warner Cable were mediocre on overall satisfaction with Internet service.  Both companies received especially poor marks for value and low ratings for phone/online customer support.

“In an industry with a terrible track record with consumers, these two companies are among the worst when it comes to providing good value for the money,” said Derakhshani.  “The FCC and Department of Justice should stand with consumers and oppose this merger.”

For as long as Stop the Cap! has published, Mediacom has always achieved bottom of the barrel ratings, with satellite fraudband provider HughesNet — the choice of the truly desperate — scoring dead last for Internet service. We’re accustomed to seeing the usual bottom-raters like Frontier (DSL), Windstream (DSL), and FairPoint (DSL) on the south end of the list. But now both Comcast and Time Warner Cable have moved into the same seedy neighborhood of expensive and lousy service. Comcast couldn’t even beat the ratings for Verizon’s DSL service, which is now barely marketed at all. Time Warner Cable scored lower than CenturyLink’s DSL.

Breathing an ever-so-slight sigh of relief this year is Charter Communications, which used to compete with Mediacom for customer raspberries. It ‘rocketed up’ to 18th place.

If you want top-notch broadband service, you need to remember only one word: fiber. It’s the magical optical cable phone and cable companies keep claiming they have but largely don’t (except for Verizon and Cincinnati Bell, among a select few). If you have fiber to the home broadband, you are very happy again this year. If you are served by an independent cable company that threw away the book on customer abuse, you are relieved. Topping the ratings again this year among all cable operators is WOW!, which has a legendary reputation for customer service. Wave/Astound is in second place. Verizon and Frontier FiOS customers stay pleased, and even those signed up with Bright House Networks and Suddenlink report improved service.

Ratings are based on responses from 81,848 Consumer Reports readers. Once again they plainly expose Americans are not happy with their telecom options. The average cost of home communications measured by the Mintel Group is now $154 a month — $1,848 a year. That’s more expensive than the average homeowner’s clothing, furniture or electricity budget. The same issues driving the bad ratings last year are still there in 2014: shoveling TV channels at customers they don’t want or need, imposing sneaky new fees along with broad-based rate increases every year, low value for money, and customer service departments staffed by the Don’t Care Bears.

Usage Billing Money Maker: Wireless Carriers Will Earn More Than $100 Billion On Data Plans This Year

Phillip Dampier March 25, 2014 AT&T, Competition, Data Caps, Verizon, Wireless Broadband 1 Comment

U.S. wireless carriers are on track to earn more than $100 billion this year from usage-based billing plans for mobile data, the first country in the world to break the symbolic $100 billion mark in data revenue.

Analyst Chetan Sharma reports Verizon Wireless and AT&T are statistically the largest recipients of revenue earned from metering data usage. For the first time in 2013, mobile data revenue surpassed voice revenue in the U.S., making data usage the most lucrative product available from wireless carriers.

A graph from the Economist published last year explains the runaway revenue growth at U.S. wireless carriers. The lack of significant competition has allowed U.S. companies to charge an average of $85 a month for data plans, which are nearly always bundled into compulsory packages of unlimited voice calling and texting. In contrast, customers in China pay just $24 for data plans. In the United Kingdom, the average charge is $9 a month.

mobile-data-prices-chart-2Sharma said the only disruption to this revenue growth in the United States comes from T-Mobile USA, which has recently cut prices on its service plans, forcing AT&T and Verizon Wireless to react with moderate price cutting. But with the significant disparity in market share between AT&T and Verizon vs. T-Mobile, neither larger carrier is expected to take a significant hit to their bottom lines without a mass exodus to the country’s fourth largest provider.

Softbank, the Japanese company that now controls Sprint, has launched a lobbying effort to secure permission to acquire T-Mobile and merge it into the Sprint network. But with reports showing T-Mobile’s willingness to disrupt the wireless market, regulators are likely to be reluctant to remove that competition from the playing field.

Verizon Getting Heat for Making Underaged and Incest-Themed Porn Available On Demand

Phillip Dampier March 25, 2014 Consumer News, Verizon 2 Comments

dantes infernoSome customers flipping through Verizon FiOS TV’s on-screen guide were shocked to discover movies like “I Banged My Stepdad,” “Pigtail Teens Pounded,” and “Mom, Daughter and Me,” available for on-demand viewing and now the company is defending itself against charges it is a porn peddler.

Morality in Media’s 2014 Dirty Dozen List gives prominent placement to Verizon’s adult pay-per-view service, which includes hardcore pornography that implies underage sex and incest.

“Verizon needs to show some corporate responsibility,” Patrick Trueman, president and CEO of Morality in Media told FOX News. “America is suffering a pandemic of harm from pornography and that harm falls particularly hard on children. We are coordinating with the members of our coalition, numbering 146 groups across the U. S., to alert the public to Verizon’s pornography distribution.”

The conservative media watchdog group has drawn some support from those uncomfortable with the nature of some of the titles Verizon is making available for purchase.

Ari Zoldan, CEO of digital communications company Quantum Networks, told FOX “as Americans we believe in freedom of speech, but we also believe in protection of our children’s welfare and well-being first and foremost.”

verizonfiostvVerizon defended its programming decisions as a matter of customer choice.

“The explosion in choice is a tremendous benefit to consumers, but not all consumers want to have access to all content for themselves and their families all of the time,” Verizon’s associate director for advertising and content standards John P. Artney wrote to Morality in Media. “Not all content is desirable to or appropriate for all consumers, however, and Verizon is proud to provide our customers with myriad tools to control the types of content that they and their families have access to through our service.”

Denial of Service Attack on One Mass. Customer Brings Verizon FiOS to Its Knees for Many

Phillip Dampier March 24, 2014 Broadband Speed, Consumer News, Verizon 3 Comments
A denial of service attack often directs compromised computers to join in the attack, bringing an enormous amount of simultaneous traffic to a single, targeted user. The result is usually very slow or no Internet service.

A denial of service attack often directs compromised computers to join in the attack, bringing an enormous amount of simultaneous traffic to a single, targeted user. The result is usually very slow or no Internet service. (Image courtesy: Cisco)

For nearly a month, Verizon FiOS customers in Westborough and Northborough, Mass. have experienced frequent slowdowns and outages of their Internet and telephone service that Verizon now admits have been traced to a denial-of-service attack on a single residential customer in Westborough.

“Someone deliberately flooded that customer with an overwhelming amount of traffic that rendered their Internet service inoperable,” Verizon spokesman Philip G. Santoro told The Telegram. “When that happened, it caused Internet service to periodically slow down for other customers in Westborough,” he wrote. “We are working to restore service to normal as soon as possible. DOS attacks are all too common today among customers of all Internet providers. It’s important to remind Internet users to keep their firewalls operating and to keep their security software current.”

When the newspaper first reached Santoro for comment, he claimed there wwere no widespread outages reported, but angry customers disagreed on the community’s Facebook page and six filed complaints with the state’s Office of Consumer Affairs and Business Regulation.

The outages have been a problem as far back as Feb. 26, growing more frequent in number since March 3. Business customers were also affected.

“It happened around 3 o’clock, every day,” said Allen Falcon, chief executive officer for Cumulus Global, a cloud computing company in Westborough. “Sometimes it was a few minutes, sometimes 45 minutes to an hour.” A few times, the interruptions occurred in the morning, just after 9 a.m., he said.

westboroughWhen the attacks began, they not only affected the company’s Internet connection, but also its business phone service.

Verizon’s first solution was to replace FiOS routers, which proved ineffective.

Customer Steve Winer from Westborough told the newspaper sending Verizon crews out with new equipment was a waste of time and money.

“I am just wondering how much time and money was wasted on this,” he wrote the newspaper in an email. “I know I spent at least a couple of hours on the phone, and others shared similar stories. But, if you add up all the shipped routers and unnecessary service calls, along with the time both of us customers and (Verizon) personnel, I am sure it really adds up, and could have been avoided if someone had simply put two and two together and posted a chronic outage which began in February.”

Verizon's wired success story

Last week, Verizon finally identified the specific customer targeted by the cyber-attack and terminated his FiOS account, which also put an end to the service-disrupting attacks.

Some customers are wondering whether Verizon has an effective plan to deal with future cyber attacks.

“It seems FiOS is very vulnerable to these attacks, which not only affects the target’s service, but that of everyone else in town,” wrote Stop the Cap! reader Steve Read, a Northborough resident. “They need a way to quickly isolate these kinds of attacks and keep them from affecting other customers’ service.”

Customers affected by the outages can contact Verizon FiOS customer service and request credit for the outages.

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