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Hawaiian Telcom’s Top Secret Cable TV Service: How Much, Where Service is Available Company Won’t Say

If this is a new way to attract customers, it’s sure stumping marketing experts who are questioning Hawaiian Telcom’s launch of its new cable TV service to compete with Time Warner Cable’s Oceanic Cable.  Nobody knows where exactly the service is available for sale, or for how much, and HawTel officials are not saying.

“If you call Hawaiian Telcom and ask them about the service, they essentially say ‘don’t call us, we’ll call you’ and they are the phone company!” says Oahu resident and Stop the Cap! reader Dan Ho, who first discovered HawTel was getting into the cable business from Stop the Cap!  “I realize we’re talking about another form of U-verse here, but that could still be a good thing for Hawaiians who cannot get Oceanic Cable and are stuck with HawTel’s awful DSL service.”

HawTel’s new fiber-copper hybrid network tested successfully for 250 mystery families who participated in a secretive beta-test.  The new service is expected to be sold mostly in a packaged bundle with extra high speed DSL (presumably up to 25Mbps), a central DVR terminal that can record up to four shows off the company’s digital cable TV package concurrently, and unlimited phone service.

Lester Chu, a HawTel spokesman, wouldn’t tell reporters the prices for the new service, instead offering to accept bills from competing providers and allowing HawTel to competitively bid for your business.  The company also wouldn’t say where the service was for sale, “for competitive reasons,” added Chu.

But HawTel has been licensed to provide service on the island of Oahu, and intends to rollout the service in contiguous service areas, so once the first new customers do go public, we’ll be able to ascertain where the service is slated to be delivered next.

HawTel says they will begin targeted advertising to alert residents when the service will be available.  That traditionally means direct mailers, door hanger tags, and door-to-door visits from sales teams hired by HawTel.

“It’s a crazy way to build excitement for the product, by keeping it a secret,” Ho believes. “More important, I suspect their pricing is not going to be very good if they require customers to bring in a current bill from a cable competitor in order to get a quote.”

Ho should know, he’s a marketing professional himself.

“I suspect the company wants face time with a customer to explain away the lack of visible savings by instead talking up the features they will offer that Oceanic Cable does not,” Ho suggests.

Among those features – the four-recordings-at-a-time DVR, the 250-channel all digital lineup, and the presence of NFL Network, a network Time Warner Cable systems have perennially refused to carry on their basic digital tier because of its cost.

[flv width=”480″ height=”290″]http://www.phillipdampier.com/video/KITV Honolulu Hawaiian Telecom Bring Cable Competition To The Islands 7-7-11.mp4[/flv]

KITV-TV in Honolulu opened their newscast with the mysterious launch of Hawaiian Telcom’s new TV service.  (2 minutes)

[flv width=”360″ height=”290″]http://www.phillipdampier.com/video/KHON Honolulu Hawaiian Telcom launches cable TV service in select location 7-7-11.mp4[/flv]

KHON-TV in Honolulu covers HawTel’s introduction of cable competition on the island of Oahu, even though company officials won’t say where it’s available or for how much.  (Loud Volume Warning!) (1 minute)

 

Your DVR Uses More Electricity Than Many Refrigerators; The $48-120 Hidden Cost of Pay TV

Phillip Dampier July 11, 2011 Consumer News, Online Video, Video 9 Comments

Dish Networks' ViP722: Leaving on a 60-watt bulb 24 hours a day uses just a tad more than the ludicrous power consumption of this set top box: 55W while active and 52W while in standby.

The average pay television subscriber is spending at least $4 a month in hidden electricity costs thanks to the small set top boxes found on top of many television sets across North America.  That’s more than you are paying to run a modern refrigerator.

That stunning revelation comes from a study by the Natural Resources Defense Council, financed by the Environmental Protection Agency.

Costs for residents in the northeastern United States, where electricity rates are often higher, can reach $10 per month for customers with a DVR in the living room and a traditional set top box in the bedroom.  That’s up to $120 a year in hidden charges.

The pay television industry, which has driven the set top box into millions of homes, has never paid much attention to energy consumption of their equipment, if only because they don’t pay the power bills of their customers.  The NRDC found that many boxes even attempt to fool consumers into believing they are running in a reduced-power mode, by programming them to slightly dim the front clock when the box’s “power button” is switched off.

In reality, most set top boxes use nearly as much power “shut off” as they use left on.

The cost of these little power demons to North America’s power grid exceeds 18 billion kilowatt hours. More than seven power plants could not sustain that level of power, even if running 24/7 every day of the year.  The combined electric use of Alberta and British Columbia in a year would still not match the power consumption of every set top box in North America.

These revelations have led the U.S. Department of Energy to lay the groundwork to regulate the power consumption of set top equipment.  Once again, the United States would be a follower.  Europe cracked down on excessive power consumption of electronic equipment years earlier.  In the United Kingdom, for example, satellite providers include a box that can achieve a standby status that only consumes a handful of watts.  The trade-off is that consumers have to wait up to 90 seconds for the box to re-boot every morning when the television is first switched on.  Consumers have the ability to choose different power states as a menu option on the devices.

Some cable operators program their DVR boxes to spin down internal hard drives overnight, assuming no recording is scheduled at those times.  But many of these initiatives were designed to spare the longevity of the hard drive, not reduce power consumption overall.

Popular Science dug through the data and uncovered the best reasonable options subscribers have for boxes that at least snort their way onto your monthly utility bill, as opposed to pigging out at the trough (your wallet):

If You Have Comcast

In terms of energy efficiency, Comcast comes out as the lesser of several evils, but not by much. Comcast’s most energy-efficient boxes tend to be slightly more efficient than their equivalents at Verizon, Time Warner, and the satellite companies, and they also offer more choices in terms of hardware. The NRDC’s data picks the Motorola DCH70 as the best standard-def box (sucking down 10W while active, and 10W while on standby), the Pace RNG110 as the best high-def box (13W active, 12W standby), and the Motorola DCX3400 as the best HD/DVR (29W active, 28W standby).

I spoke to a Comcast representative who told me that typically, the company installs whichever box they want, but that if you request a specific box that they have in stock, they’ll happily install that one for you. They won’t order you a box from elsewhere, and this kind of hardware rotates in and out of availability fairly quickly, but at least you might have the option to choose.

If You Have Verizon FiOS

Verizon’s most efficient boxes are just okay, while its least efficient are some of the worst of any surveyed. Even worse, Verizon gives the customer absolutely no option about which box they get–you can’t request a specific box at any point. That doesn’t matter too much for the non-DVR boxes, as the NRDC’s findings only turned up one standard-def and one high-def box, but there’s a big gap in efficiency between the company’s best and worst DVRs. The most efficient is Motorola’s QIP7216, at an unremarkably 29W active and 28W standby, but the older Motorola QIP6416 clocks in at a lousy 36W active and 35W standby.

If You Have Time Warner Cable

Time Warner has a smaller selection of set-top boxes than either Verizon or Comcast, with only one averagely (in)efficient DVR and one startlingly inefficient standard-def box. For a high-def, non-DVR box, the Cisco Explorer 4250HDC is the most efficient, at 19W active and 18W standby, but Time Warner told me that that’s an older box that might be tough to find. The Time Warner rep was (surprisingly, given the company’s lousy reputation here in New York) quite helpful, and offered to try to track down one of the 4250HDCs if that was what I wanted.

If You Have DirecTV

Here we get to the satellite folks. DirecTV’s offerings are only slightly less efficient than Comcast’s or Verizon’s, with the (currently only) standard-def box coming in at 12W active, 9W standby, the best HD box (the DirecTV H24) at 16W active, 15W standby, and the best HD/DVR (the DirecTV HR24) at 31W active, 31W standby. The DVR is pretty lousy, efficiency-wise, but that’s nothing compared to the Dish Network’s craziness.

If You Have Dish Network

I don’t know what is happening inside the Dish Network’s DVRs. Given the energy usage, they might well be powering nuclear reactors. The “best” DVR Dish offers, the ViP922, uses 43W while active, and 40W while in standby–but the worst one, the ViP722, uses a ridiculous 55W while active and 52W while in standby.

If You Use Internet Video Streaming

Many are ditching traditional cable services for online services like Netflix and Hulu, and luckily, there are a whole bunch of gadgets that can play that content (and more) on a TV. They are also invariably more efficient than a cable box, to a startling degree. The Apple TV (reviewed here), which streams Netflix and plays music, movies, and TV from Apple’s iTunes store, uses a mere 3W while active and 0.5W while in standby. Roku‘s XR-HD, which streams Netflix, Hulu, Amazon Instant Video, and a whole bunch more, uses only 7W while active and another 7W while in standby. The Boxee Box, a curiously shaped media streamer that uses the open-source, ultra-powerful Boxee software, can play Netflix, stream video from other computers on its network, play media from a hard drive or thumb drive plugged into one of its USB ports, and stream from lots of apps (with Hulu hopefully to come soon). It was tested by an Ars Technica commenter whose measurements probably differ from the NRDC’s, but roughly estimates that it uses 13W while active and 13W while in standby.

[flv width=”640″ height=”388″]http://www.phillipdampier.com/video/CBC TV boxes guzzle power 6-27-11.flv[/flv]

CBC TV took a closer look at the pay television set top box: a real power guzzler.  (2 minutes)

Why Community Fiber Broadband is Better Than Most of Today’s Big Cable/Telco Alternatives

Phillip Dampier July 11, 2011 Broadband Speed, Community Networks, Competition, Public Policy & Gov't, Video Comments Off on Why Community Fiber Broadband is Better Than Most of Today’s Big Cable/Telco Alternatives

Digging into the reality of community broadband – the New Rules Project compares the broadband prices and speeds of community networks to incumbent providers, using examples from North Carolina that are representative of modern community fiber networks. Incumbent providers including AT&T, Comcast, and Time Warner Cable want to outlaw these networks even as many, including the Federal Communications Commission, recognize the clear benefits of allowing communities to decide locally whether such an investment makes sense.  What is your broadband service like?  Would you trade your ISP for one of these community fiber providers?  (3 minutes)

Eddie “The Hookup Man” Nabbed in Ohio for Alleged Illegal Cable Hookups

Phillip Dampier July 7, 2011 Consumer News, Video 1 Comment

Tough economic times often bring an incentive to steal cable service, especially when being given the name and number of a “connection” that can hook you up for service priced at almost $75 a month for a one-time fee of $50-75 dollars.

Time Warner Cable, among other Cleveland-area utilities, were on the hunt for one alleged under-the-table installer — Eddie Hunt — for nearly a year.

Last Wednesday, a sting paid off.

“He’s kind of known as the hook-up man. If you want to go the black market route and risk getting in trouble, he’s the man, ” Time Warner Security Director Kevin Pratt told Cleveland TV station WKYC.

Hunt is certainly qualified to install cable — he’s been allegedly fired twice from his last two jobs working for cable companies.

Hunt allegedly charged local residents a “one time” fee for unlimited cable, until security measures cut the free service off.  Time Warner claims Hunt would then be back for more money to restore the service.

Time Warner Cable surveillance video shows Hunt accepting money for an illegal cable hookup — video later partly shown by WKYC News.

Hunt was arrested by local authorities.  Time Warner Cable says it will run an amnesty program for those with illicit cable hookups, allowing them to become paying customers without legal penalties.  But the cable company says it will give only one warning before they would move to have customers prosecuted for cable theft.

Cable companies estimate at least 14 percent of their “customers” aren’t paying for cable service.  The industry claims this hurts local communities through reduced franchise fee payments and raises prices for everyone else.

“It costs you and me, the government and everybody,” said Pratt. “It’s definitely not a victimless crime.”

[flv width=”480″ height=”288″]http://www.phillipdampier.com/video/WKYC Cleveland Garfield Heights Sting nabs alleged cable TV pirate 7-1-11.flv[/flv]

WKYC-TV ran this exclusive story on Eddie “The Hookup Man” Hunt, alleged to be responsible for cable and other utility theft in the Cleveland, Ohio area.  (3 minutes)

Reason #438 AT&T and T-Mobile Should Not Be Allowed to Merge: What Rural Service Improvement?

Is this a T-Mobile priority coverage zone?

One of the “benefits” AT&T’s lobbying team claims will come with a merger between AT&T and T-Mobile is improved wireless service for rural America.

But an investigation into T-Mobile’s urban-focused coverage, and AT&T’s own recent rural past prove those claimed benefits simply don’t make any sense.

Although rural and small town America is increasingly aware of AT&T, that comes mostly from the company’s recent acquisitions, not from mass expansion projects to blanket rural America with AT&T iPhones.  AT&T has been on a shopping spree for smaller regional wireless carriers for the last five years, picking up resources through acquisition, not from independent investment.  But a buyout of T-Mobile will bring no new assets for AT&T’s presence in rural America.  It will simply reduce competition in larger communities the same way AT&T cut out competitors in rural markets.

Just ask customers of Dobson Cellular.  In 2007, AT&T bought the rural provider, doing business as Cellular One, for $2.8 billion dollars and converted customers to AT&T.  Dobson was the largest cell phone company around in Alaska and rural Michigan.  In fact, the company provided roaming capability to customers of AT&T and T-Mobile who ventured into the rural areas Dobson specialized in serving.

After the conversion, did service improve for the newly acquired AT&T customers?

“No way,” says ex-Cellular One customer Jim Duncan who lives in a former Dobson service area in Michigan. “AT&T ruined cell phone service when they got here with dropped calls and phantom busy signals, turning a friendly local-focused company into one where you are just an account number reaching some national call center.”

Acquired by AT&T in 2007

Duncan says AT&T never cared one bit about rural Michigan before buying Dobson, and in his view, still doesn’t.

“Smaller markets are an afterthought for AT&T and T-Mobile has zero impact (and customers) in my area, so I have no idea what great improvements a merger will bring to our part of Michigan that neither company paid much attention to,” Duncan says.

That same year, AT&T also grabbed spectrum worth $2.5 billion with its acquisition of Aloha Partners, which spent time at FCC auctions buying up 700Mhz spectrum and then eventually reselling it at a profit to wireless carriers.  AT&T didn’t just buy some of Aloha’s spectrum, it acquired the whole partnership.

Acquired by AT&T in 2008.

In April 2008, Edge Wireless customers in southern Oregon, northern California, southeastern Idaho and Jackson, Wyoming discovered they were well on their way to becoming AT&T customers, too.  AT&T acquired Edge and rebranded it AT&T. That hardly represents investment and dedicated expansion into rural Rocky Mountain states — AT&T simply bought up another company that did.

Also in 2008, AT&T snapped up Centennial Communications, a considerable-sized regional player in the central United States.  Centennial delivered service in less urban areas in Indiana, Ohio, and Michigan in the north, and Louisiana, Texas, and Mississippi in the south.  One million customers, Centennial’s spectrum and name all became part of AT&T.  Did service improve for Centennial customers with that merger?

“Overall, it stayed the same when it was Centennial and switched to AT&T,” says our reader Kevin, who now lives in Ft. Wayne, Ind.  “We did get access to the iPhone, but along with it came AT&T’s infamous dropped calls and lousy customer service.”

Acquired by AT&T in late 2008.

Kevin switched to Verizon Wireless earlier this year.

“If I was the FCC, I wouldn’t approve this merger because it promises nothing for rural America or anyone else,” says Kevin. “AT&T had a presence in Indiana before they bought Centennial, so all the deal did was reduce competition in this state.”

Centennial’s service areas were not exactly among T-Mobile’s priority coverage areas, either.

Acquired by AT&T in 2011?

“T-Who?,” Kevin asks.  “We’re aware of them now, but I don’t know anyone who has service with them.”

The real unanswered question is what AT&T is doing with all of the rural spectrum it already owns, controls, or has acquired.  How will an acquisition of an urban-focused carrier help deliver improved service in the rural markets both companies have traditionally ignored?

Answer: It won’t.

[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/WANE Ft Wayne Centennial Joins ATT 10-09 and 02-10.flv[/flv]

WANE-TV in Ft. Wayne, Ind., covered the merger of Centennial and AT&T back in 2009 and early 2010.  Fort Wayne was the home of a major regional office for Centennial.  (4 minutes)

 

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