Comcast’s e-mail service failed for customers across the country this morning, creating a storm of complaints on Comcast’s customer support forum.

The outage appeared to begin at around 10:00 ET this morning and blocked access to customers relying on Comcast for their electronic mail.

Stop the Cap! reader Bob dropped us a line to let us know about the problem, and its impact appears to be near-universal for Comcast/Xfinity customers.

One reader who managed to get through on Comcast’s overwhelmed customer support phone line sent along this news:

“I contacted Comcast and got a recording that their email servers are having technical issues and their techs are aware of the problem and are working to resolve the issue. They did not give a time frame when the servers would be back on line.”

A Comcast employee reported:

Users of other web-based e-mail services like Gmail are unaffected.

(Courtesy: The Consumerist)

An Atlanta grandmother got the shock of her life when she called Comcast to activate her new cable box.  When she called the number Comcast printed on her equipment receipt, she reached an adult sex chat line instead.

“I really got upset, extremely upset. I just like hung up the phone and I had to call my husband in to call again because I thought maybe I’d made a mistake,” Dora Nopple told an Atlanta TV station. “I just couldn’t believe that a company as large as Comcast is not aware of what they’re putting on receipts for their customers to call.”

Sure enough, when a reporter from WAGA-TV dialed the number on the bottom of her receipt, a porn line answered the call.

A Comcast spokesperson immediately apologized.

“Comcast sincerely apologizes to our customer who called the number typed on their receipt and was unexpectedly connected to an adult phone service,” the Comcast statement reads. “This was simply a human error resulting from a temporary employee who inadvertently typed an 800 number prefix for what should have been an 888 prefix.”

Comcast believes the error was a one-time event, limited to that single customer.  Perhaps, but Comcast’s past track record has exposed other customers to heavy breathing sex operators. In October 2009, Comcast mailed thousands of postcards to Harrisburg, Penn. customers advertising an upgrade of HBO On Demand.  But when callers dialed the 800 number to order the new HD channel, they ended up on a phone sex hotline instead.

[flv width=”360″ height=”290″]http://www.phillipdampier.com/video/WAGA Atlanta Wrong Number Leads to Phone Sex Line 11-30-11.mp4[/flv]

WAGA in Atlanta spoke with Dora Nopple about her unwelcome phone call to Comcast customer service to activate her new cable box.  She reached an adult porn line instead.  (2 minutes)

Providers establishing Internet Overcharging schemes like usage caps, so-called “consumption billing,” and speed throttles that force subscribers into expensive upgrades are planning for a growth industry in data consumption.

According to new research from a firm that specializes in market strategies, data usage is going up and fast.  Providers that seek to monetize that usage could win enormous new profits just sitting back and waiting for customers to exceed the arbitrary usage caps some companies are now enforcing with their customers and take the proceeds to the bank.

iGR says the demand for connectivity inside the home is at an all-time high, with the biggest growth coming from wireless Wi-Fi connections.  The more devices consumers associate with their home broadband connection, the greater the usage.

That is one of the reasons why providers are increasingly supplying customers with free or inexpensive Wi-Fi routers, to make the connections quick, simple, and potentially profitable down the road.

Comcast's Wireless Gateway: A Future Money Machine?

Comcast announced this week it would supply a free 802.11N “home gateway” free of charge to every new customer signing up for Blast!, Extreme 50 or Extreme 105 broadband service.  In addition to wireless connectivity for every device in the home, the Xfinity Wireless Gateway also includes a built-in cable modem and phone service adapter.  Time Warner Cable strongly encourages new DOCSIS 3 customers use their equipment for Wi-Fi service as well.  AT&T has included its own wireless gateway with U-verse for a few years now.

The offer is hard to refuse.  Nearly 80 percent of homes use wireless access, connecting cell phones, tablets, laptops, personal computers, game consoles, and even set top boxes that let customers stream video entertainment to their television sets.

iGR found average usage in heavily-connected homes at the all time high of 390GB per month.  By 2015, that will rise to more than 440GB per month.  Both numbers are well in excess of average consumption limits by providers like Comcast and AT&T, which top out at just 250GB per month.  Of course, not all Wi-Fi usage is based on traffic from the Internet.  Some users stream content between computers or devices within the home.  But the research is clear — usage is growing, dramatically.

Video is by far the biggest factor, according to iGR.  Their report, U.S. Home Broadband & WiFi Usage Forecast, 2011-2015, says the appetite for downloaded and streamed video is only growing.

Matt Vartabedian, vice president of the wireless and mobile research service at iGR, says home Wi-Fi has become inextricably woven into the personal, social and business fabric of today’s life.

Broadband is increasingly seen by consumers as an essential utility, as important as the home wired telephone, safe drinking water, and reliable electric and natural gas service.

Providers are positioning themselves to take advantage of the growth market in data by establishing what, at first glance, may seem to be generous (often inflexible) usage limits that remain unchanged years after introduction.  While only a handful of consumers may cross those provider-imposed thresholds at first, within a few years, it will be more uncommon to remain within plan limits, especially if you watch online video.

[flv width=”480″ height=”290″]http://www.phillipdampier.com/video/Daily Local New cable TV programming guide on display 10-5-11.mp4[/flv]

Comcast has been showing off changes to the company’s set top boxes, which have been effectively “dumbed-down” by removing internal processing power for box-based program guides and other content functions and moving it to the cloud.  Comcast’s newest generation of boxes offer a slimmed-down “browser” experience which relies on stored content at the cable company office, delivered over the cable to the set top box. 

In Denver, Xfinity representatives demonstrated the new products to groups of media and local radio personalities.  Among the most visible improvements is the program guide, which is starting to come closer to Netflix and farther away from the TV Guide Channel of years-past.  Among the features includes box art from movie titles, online reviews, social networking tie-ins, and instant recommendations for other similar programming to watch, either concurrently or in the future.  Subscribers can program shows for recording, alert friends to upcoming shows, and even submit their own review for other subscribers to see.

It’s a significant improvement over older technology, like that still used by Time Warner Cable and other cable operators, which requires extensive delays before incremental improvements are made, and operates on expensive set top terminals.  Video courtesy of: The Daily Local.  (2 minutes)

Big cable companies are targeting their non-customers, and those current customers who refuse to sign up for triple-play bundles, with some of the most aggressively-priced promotions in years.  The two largest, Comcast/Xfinity and Time Warner Cable, have been sending out letters offering dirt cheap $20 Internet service or cable television packages that include DVR service, a second set top box, and hundreds of digital cable channels for $49.99 a month for two years.

Comcast

Comcast promotions vary in different markets, depending on who their competitors are.  The best pricing goes to new customers, as a recent promotion sent to suspected DSL customers in their service areas illustrates.

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The cable company is pitching 12 months of Xfinity Performance (typically around 12Mbps) for $19.99 a month for the first year for new customers only.  Some customers report they can cancel penalty-free at the end of the first year, while others are told Comcast is actually pitching a two-year contract where the price of the service increases to $34.99 a month during the second year (a early cancellation fee pro-rated to less than $50 applies in some areas if you cancel early).  This pricing applies to standalone service, which makes it aggressively priced.  Most cable providers charge a higher price for Internet-only service.  Some customers also report a $25 or more installation fee applies (and in some areas an in-person install is required for new customers).  We’ve heard from some readers that successfully qualified for the promotion under the name of a spouse if they have had Comcast service previously.  Otherwise, Comcast usually requires customers to be without service for 90 days before they are considered “new customers.”

Customers can try calling 1-877-508-5492 to request this offer: $19.99/Month for 1 year with no additional service required (Code at bottom of letter: LTP79376-0014).

If that number does not work from your calling area, other numbers to try include: 1-877-298-0903 (CA, TX), 1-877-508-5492 (CA, WV), 1-877-494-9166 in NJ (currently pitching 6-month version of this promotion without contract.)

If 12Mbps is not fast enough, ask the representative what promotional pricing exists for faster speeds.  Some customers scored 35Mbps service for $10 more per month.

A separate ongoing promotion from Comcast offers Blast Internet service at 25Mbps+ on similar terms.  But pricing varies wildly in different markets.  Customers in California were able to purchase this promotion for as little as $19.99 a month with a year-long contract, while customers in Chicago were asked to pay $39 for essentially the same service.

Comcast’s promotions list runs several pages, so if you are shot down asking for these promotions, ask about other current offers or hang up and try calling again and asking to speak with someone else.  Your results may vary depending on the representative you speak with.  Remember Comcast’s 250GB usage cap applies to all residential service plans.

Time Warner Cable

In addition to regular Road Runner standalone Internet service promotions that deliver Standard Service speeds for $29-35 a month for a year, Time Warner has been getting very aggressive trying to win back cord-cutters and those who have left for a competing pay television provider.  The cable company has mailed letters to non-cable TV customers in the northeast pitching substantial discounts on cable TV service price-locked (but no commitment term for you) for two years and includes free DVR equipment, DVR service, and a second set top box with digital cable TV for $49.99 a month.  They’ll even credit back the cost of any early termination fees charged by another provider over the course of the first year of service.

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The promotion is intended primarily for customers who already receive service from another provider, but new customers can call 1-855-364-7797 and ask for the offer without the competing provider early termination fee rebate.  If you do receive service from another provider, there are various requirements and steps to follow to qualify for up to $200 in termination fee credits.  Visit SwitchtoTWC or call them to learn the details.

Neither of these promotions work for existing Time Warner Cable customers.  If you already subscribe, discounts will be offered when you threaten to cancel service.  Retention deals from Time Warner Cable can be as aggressively priced as new customer promotions.  We have found retention offers made during the initial call to request a service disconnection are often not very aggressive.  Most representatives try and pare back your package before starting to offer retention pricing (which gradually gets better the more times you reply, “is that the best you can offer?”)

Our best recommendation is to call and request to cancel service 2-3 weeks from today and wait for a Time Warner Cable retention specialist to call you (answer those mystery caller ID calls — it could be Time Warner).  The reps that call you directly often deliver the most aggressive retention deals.  If nobody does reach out to you, call Time Warner yourself a few days before the disconnect is scheduled and ask them to make you an offer to rescind your disconnect request.  You may find some serious savings taking this approach.  If not, you still have time to rescind your disconnect request on your own before the plug gets pulled.