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The First Honest Cable Company

This video is really making the rounds - I have seen it on multiple lists and many have forwarded it to me. I found it hilarous, but be warned that it features salty language that may be offensive to some and is probably NSFW.

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Charter Losing Money, Cuts Customer Support

A Stop the Cap! story about Charter cutting customer service positions makes a point we make too rarely. Not that customer service from the national cable and telephone companies is terrible and getting worse, but that some are constantly struggling to make a profit.

Investors don’t think too highly of the company either. Charter reported a wider third-quarter loss in November, losing $87 million compared with $85 million lost during the same quarter last year. Executives tell Wall Street the company was in chaos before new management under Tom Rutledge took over operations. Rutledge’s priorities are to invest in new set top boxes, convert more of its systems to digital, raise prices on services, cut back on promotions and retention offers, and centralize customer support operations.

Imagine that! When communities have to make investments and suffer losses, they are accused of failing. Charter is losing money (and recently emerged from a bankruptcy proceeding) and trying to make changes to correct its condition.

This is what happens to many firms in telecommunications. Only when it happens to those that are owned by communities, they are besieged with claims that such a situation is somehow proof that the public cannot own and operate networks.

Note that others, like Comcast, are actually lauded by Wall Street for operating in areas with so little competition that they can increase their rates at will -- hard not to make a profit in that case. Which is precisely why existing cable and DSL companies push laws to restrict local authority to build better networks.

Fibrant Network Gains Subscribers Despite Technical Difficulties

As we emphasize time and time again, communities build their own networks because they have to, not because they want to. North Carolina's Fibrant network in Salisbury is no exception and a recent technical headache is a reminder that no network is built without problems developing.

Fortunately, Salisbury's strong reputation for providing great, local customer service is helping as it deals with service interruptions that are the fault of the gear that runs the network. 

According to an Emily Ford article in the Salisbury Post, there have been several outages this month. While some outages are attributed to unreliable access gear, the city is still investigating to determine what other factors continue to cause problems. The network currently serves 2,160 subscribers, with 220 of them being commercial customers.

A November 9th Post article on an earlier outage, noted the problem with faulty equipment. A statement from Fibrant General Manager Mike Jury also attributed the outage to a lack of redundancy, which has since been repaired.

While Zhone has been the access gear supplier, Fibrant is now testing Calix equipment. Calix has long been a favored choice among community networks and has a very solid reputation. This is a reminder to communities of the importance of due diligence in choosing vendors -- make sure to talk to other community networks about their experiences with vendors. All equipment is subject to failure, so a key question should be how quickly different vendors respond with solutions to problems.

This technical problem comes on the heels of political problems as Salisbury has been targeted by Time Warner Cable for attacks. Readers will recall how Time Warner Cable successfully pushed the Legislature to pass H129 in 2011, a bill to neutralize publicly owned networks

Even though there have been recent outages, more people continue to take the service than to drop it. From the Ford article:

The week before the outage, 23 new subscribers signed up.

"Despite the outage, our customer base has grown," [City Manager Doug] Paris said, crediting Fibrant staff's dedication to customer service.

Jury said Fibrant's trials are to be expected, especially with a network built from scratch.

A 24-year veteran of the cable industry who took over Fibrant in March, Jury said Salisbury's network is so advanced he refers to it as "bleeding edge."

With no blueprint to follow, Fibrant is breaking new ground, he said.

 

MI-Connection Embraces New Strategies, Increases Speeds for Free

MI-Connection, the North Carolina community-owned network serving Davidson, Cornelius, and Mooresville, is upgrading network speeds and unveiling a new marketing campaign. MI-Connection was formed when a few towns north of Charlotte purchased the old, dilapidated Adelphia cable network out of bankruptcy and began rehabbing it.

According to David Boraks of the DavidsonNews.net:

The company on Dec. 10 will begin selling a new top speed internet service tentatively called “Warp Speed Broadband,” though the name could change. It will offer 60 mbps downloads and 10 mbps uploads. Customers can get it for $80 to $100, depending on whether they bundle it with TV and telephone.

Existing customers also will get faster speeds Dec. 10, at no extra charge (Download speed x upload speed): 8×4 becomes 10×5, 12×4 becomes 15×5, 16×4 becomes 20×5 and 20×4 becomes 30×10.

Notice that this community network offers faster upstream speeds than most privately owned cable networks -- because they recognize the importance of empowering subscribers rather than hoping they will just consumer video and do little else.

The DavidsonNews.net article also covered MI-Connection's last quarter financial audit report. The network has faced chronic financial problems but things continue to improve. From the article:

The financial report for the quarter that ended Sept. 30 showed that the company grew revenues in all three of its businesses – cable TV, telephone and internet. Altogether, revenues were up 6.5 percent from the first quarter a year ago, to $4,114,992. Expenses fell 8.7 percent, in part because of savings on what the company pays its high-speed internet providers.

The company’s earnings from day-to-day operations continued to grow.

A new marketing plan, dubbed "Straight Talk," will appeal to local ownership and include slogans like "If you owned a grocery store, wouldn't you shop there?" "Can you create jobs just by watching TV?" and "When your boss is everyone in town, your customer service had better be good." It will be interesting to see whether or not the appeal to community spirit helps increase subscribership.

North Carolina law is especially hostile to community owned networks and MI-Connection has struggled financially, in large part due to how poorly Adelphia (a private company) had maintained essential components. Competitive attacks from Time Warner Cable have aggravated the situation. StopTheCap reported in April that, in a rare instance of private overbuilding, the cable giant has begun serving the area and appears to be making a competitive grab for MI-Connections customers.

Stop the Cap

The situation has been difficult for MI-Connection but great for all consumers in the region. From the Stop The Cap article:

Other residents in nearby Cornelius are also getting prices substantially lower than residents in cities like Charlotte, where many residents have one choice for cable: Time Warner. 

Sam, a Stop the Cap! reader in the Morrison Plantation neighborhood, noted they skipped the last few rate increases from the cable company.

“You just call and tell them the rate is too high and as soon as they find out you have MI-Connection as an alternative, they lower the price,” he said. “My niece in Charlotte can’t get the same deal even when we gave her the details — it’s only good in areas where MI-Connection operates.”

That leaves Charlotte residents paying $35-50 more a month than savvy customers further north can have for the asking.

Once again we find that competition improves affordability, even in a state with some of the toughest restrictions.

Sam, quoted in the StopTheCap article makes an astute observation about the cable company's agenda:

“It seems pretty clear to me that Time Warner isn’t hurrying to compete with Comcast or Charter — just MI-Connection and that makes me suspicious,” Sam says. “After spending all that money to ban community broadband in the state, they now seem to be trying to drive out of business the handful of companies that were exempted.”

“My niece is probably paying for this right now on her cable bill too, and once MI-Connection is out of the way, those prices will shoot right back up,” Sam concludes.

Burlington Telecom Announces a Gig and Computer Repair Services

We have covered happenings at Burlington Telecom, both positive and negative, extensively. We are glad to report some interesting new developments of this Vermont municipal network. BT is rolling out faster connections and using its competitive advantage in customer service to offer some computer repair services. Joel Banner Baird at the Burlington Free Press reported:

Without cash reserves and promotional enticements available to BT’s commercial competitors, the fiber-optic Internet/phone/cable provider will focus on its strength in customer service, said interim General Manager Stephen Barraclough.

As our readers know, BT is in the midst of a pending lawsuit with Citibank, wherein the financial giant says the city still owes it $33.5 million. The network's troubles, including misuse of public funds by the previous Mayor, have hurt its ability to generate income and Burlington's credit rating has suffered.

While fixing PCs certainly won't pay mounting legal fees, it will make life easier for customers. Details include a $25 diagnostic fee and a rate of $45 per hour plus materials. More about the service is available on the PDF of the official anouncement.

A more recent announcement puts Burlington among the few communities with citywide access to a gig. Burlington Telecom is in the midst of upgrades and will be offering 1 Gbps service and 40 Mbps service starting on December 1, 2012. Both options are symmetrical.

40 Mbps - $99.99 per month

1 Gbps - $149.99 per month when committing for one year; or $199.99 per month with a month-to-month arrangement

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View a PDF of the official announcement flyer.

A gig for $150 to residential connections is one of the best deals we have seen in the nation and is far superior to what FairPoint DSL or Comcast Cable offer in town.

Initial Comcast Response to Sandy As Bad as Can Be Expected

We recently came across a post by Seth Clifford, a blogger whose parents' house in New Jersey was ravaged by Hurricane Sandy and is still in danger. In this time of climate change, when humans no longer know waht to expect from Mother Earth, it can be comforting to have a few solid truths on which to rely.

In this case, however, that solid truth isn't comforting at all. From Seth:

She was trying to explain to them that they stood to lose the entire house in an explosion and that the authorities were having trouble even reaching the area to cut the gas to prevent this. She mentioned that she wouldn’t be able to return the cable box and equipment because the storm had basically destroyed the area, and the house was perilously close to being destroyed completely as well.

Comcast’s reply to her?

We’re very sorry, but the price of the equipment will be charged to your account if you’re unable to return it.

That’s right: in the middle of a natural disaster, the worst our area has seen in decades, at a time when my parents have already lost one house and stand to lose the other, as well as everything in it (remember, it’s not a rental so it’s fully furnished and they live there for part of the year – there are family keepsakes, antiques, and the like) – at a time like this, Comcast has essentially told my mom “tough shit”.

We only wish that reporting this story was shocking, surprising, and rare but it isn't. Unfortunately, we see reports like this on a regular basis. Responses are also usually scripted and go something like this response to the Consumerist, which requested a comment:

Consumerist Logo

We have already reached out to apologize for adding to his parents’ difficulties and to ask for his parents’ contact information so we can call to personally apologize and assure them that we are handling the equipment without the need for them to do anything further. Please know we are working with our teams to ensure we handle all customer calls on a case-by-case basis with sensitivity to the devastating effects Hurricane Sandy had on so many of our local communities and residents. Again, we are of course notating his parents account to ensure they are not charged for equipment they can’t return.

Without the Consumerist to intervene, let's hope they are not compelled to wade through flood waters dressed in fireproof gear. Once again, Comcast lives up to our pitifully low expectations - way to go!

Fire Guts His Apartment, Verizon Demands $2,300 NOW

When we hear the news of a tornado, fire, flood or other natural disaster, most of us feel empathy for victims whose lives are disrupted by loss and upheaval.  But AT&T, Comcast, Charter, and CableOne have all been criticized for their callous behavior in the wake of disasters. Now we can add Verizon to the list.

In a recent DSLReports story, Karl Bode shares the story of Jarrett Seltzer, whose apartment and possessions were destroyed by a fire. Seltzer was a FiOS customer and, even though he called to cancel service and explain the situation, Verizon demanded he hand over $2,300 to cover the price of four cable boxes (each 6 years old) and an old FiOS router. Karl writes:

Seltzer notes that Verizon continued to bill him after learning about the fire, and his attempt to resolve this with Verizon has involved being on hold for several hours, being transferred fourteen times, while speaking to fifteen different Verizon support representatives.

We would like to report that Verizon had a change of heart, realized their callousness, and reached out to be more cooperative with Mr. Seltzer. Unfortunately, Verizon only eased up after Jarrett's video on YouTube began to get noticed.

As part of a longer response to DSLReports' request for comment, Verizon said this:

Even though this (customers are responsible for maintaining the equipment in good condition while in their possession) is a part of the terms of service with all of our customers, we need to be empathetic with our customers in such difficult situations.

So far, it sounds like we could have done a better job of communicating with him and been more helpful in addressing next steps. At the same time we are reviewing our internal processes to ensure we are providing appropriate consideration for customers in situations like these.

Jarrett's video sums up the situation:

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Cable Company Ripping Off Houston

Amy Davis, Investigative Reporter for Click2 Houston.com and local channel 2, reports that Wave Vision, a Houston cable company, is not up to the task in the Lone Star State. According to Davis, the cable company may soon lose its license in Houston.

But the story won't end there because the state of Texas has preempted most local authority to protect consumers and the City's interests. Franchises like this one were grandfathered in when AT&T pushed its statewide franchising legislation that made the state responsible for enacting the franchises that allow video providers to put their cables in the rights-of-way and offer services to residents. And that law does not allow the state to refuse franchises to deadbeat corporations.

As long as a company fills out the form, the state must grant a franchise and the City has to abide by it. This leaves the City with only one option - taking the company to court. And that means more legal expenses. But when Houston wins the case, and it almost certainly will, it is not clear that they will be able to collect because the company will likely declare bankruptcy and the City will be just one of several with unpaid debts.

This is what happens when AT&T writes the legislation that takes power away from communities and puts it in the state or federal levels. State and federal government is not as responsive to citizens as local and is not equipped (nor authorized in many circumstances) to protect the public interest.

Now for the background on just how bad company is, another reminder of why communities must have the authority to build their own networks rather than being stuck with companies like this.

Customers have complained to the local Better Business Bureau 90 times and 61 of those complaints have gone unanswered, driving the BBB rating to an F for Wave Vision. (And those are just the complaints the BBB knows about!)

According to Amy Davis, however, customer complaints have not put Wave Vision in this precarious position. The company owes the City of Houston $809,789.91 in unpaid rights of way fees. Customers continue to pay those fees as part of their monthly bill, but the money is not finding its way to the city. From the article:

"They've refused to work with us, and they've essentially forced us to the step which we are now which is to take unprecedented action and recommend that their franchise be revoked," explained Chris Newport of the City of Houston Regulatory Services.

Unfortunately, revoking the grandfathered Houston franchise won't change anything as long as the company has a franchise for all of Texas.

This is not the first time Wave Vision has mistreated customers by taking advantage of their position. Cindy George from the Houston Advocate Blog reported also on limited choice and unannounced changes in pricing plans from Wave Vision. Apparently, several apartment and condo complexes in the city signed exclusivity agreements with TVMax years ago. Wave Vision has systematically reduced service and options, while increasing prices. Residents have no choice - Wave Vision carries on the monopoly in those properties.

George also reports that:

Wave Vision

In 2005, TVMax sought an injunction to stop the Greenbriar Chateau apartments from using another cable provider, but dropped the suit 3½ months later. Filings indicated that the service provider had been in an exclusive contract with the complex since 1993.

Last year, Network Supply Services filed a breach of contract suit against Wavevision for allegedly failing to pay for nearly $43,000 worth of communications equipment and services. The dispute was settled last month.

A temp agency also sued for breach of contract in 2011, accusing TVMax/Wavevision of failing to pay $108,613.96 due for temporary employees. A judge signed a default judgment in November after the cable company didn’t respond to the lawsuit.

Davis was alerted to the most recent problem when a viewer emailed her about his experience with Wave Vision:

Customer Dan Herrick e-mailed consumer expert Amy Davis to let her know he signed up with Wave Vision for $119 a month. He said his bill increased every month after that until he was paying $212 just for basic cable.

Davis called Wave Vision; but no one returned her call. The City of Houston says the company has been avoiding its calls too.

You can watch the video report here.

The Incredible Incompetence of Comcast

What happens when economies of scale are taken to ridiculous proportions? The wretched customer service of Comcast, AT&T, Etc.

We recently had to move our Institute for Local Self-Reliance office within Minneapolis due to our old building being razed shortly for student condos. Given the paucity of choices, we are stuck with Comcast as our ISP (the other option is a slower, less reliable CenturyLink DSL connection).

Dealing with Comcast for the move has been a reminder why communities are smart to build their own networks. They can ensure a much better customer experience because they are not so unmanageably large. In telecommunications, some scale is desirable because key costs are somewhat fixed. Regardless of how many subscribers a network has, it has to advertise, do tech support, keep the network functioning, and more. Spreading those costs across a wide base makes sense.

But when you take it to the levels of national carriers, you end up with customers having to call India to talk to a living human. After enough complaints, some of those jobs have come back to the US, but customer satisfaction remains elusive because of the difficulty of managing tens of millions of customers on probably hundreds of different internal systems -- most of which do not talk to each other.

To ensure continuity of service for our office, we installed business-class service at our new location before we moved. We were told that on the day of the move, we could switch our static IP from the old location to the new with just our account number and the MAC address of the Comcast modem already installed in the new location.

On that day, I called Comcast with that information and was told I needed to have our "new" account number. I said that we didn't know anything about a "new" account number as we were moving our service and they specifically told us that we only needed the Mac addy and the account number we have long used.

Comcast Anchor on Economy

The Customer Service Rep could not tell me the new account number. I asked if he could find it with several different pieces of unique information I did have and was told no. It was not possible.

Frustrated, I said, "screw it," and just plugged old Comcast modem into the network, wondering if it would magically work with the correct static IP. And Lo, we were back on the Internets. All of them. Problem temporarily solved.

Of course, because Comcast's network is a last-generation cable product, it shares bandwidth among many users. We often achieved something close to the advertised speeds at our old location but our new location must be more heavily oversubscribed because the connection is noticeably slower.

After settling in, we called Comcast to figure out what equipment to send back to them and make sure we were only being charged at the new location.

Helpfully, when we supplied our "old" account number to the CSR this time, they were able to instantly tell us what the "new" account number was. Any illusion of progress was shattered when they insisted that they had already turned off service at our new location because they thought we were moving out of the location we had service at for 7 days to the place we had service at for years.

Of course, if they had actually terminated our new service, we would not have been able to call them over our VoIP phones, so we were reasonably sure they just had no idea what they were doing. As a side note, we originally tried to use Comcast VoIP service, but the lag was so terrible and their service so miserable, we switched to an independent VoIP company that does a much better job.

While they were trying to figure out how many ways they had screwed up (keeping us on hold for over 30 minutes), their network hiccuped and we lost the call. So we called back. They eventually got their act together enough to tell us we had to change the modem configuration, which resulted in lost connectivity briefly.

When it came back on, the modem worked but our router did not. It took another hour of us troubleshooting what the Comcast CSR had told us before it all worked again. For now. We are honestly expecting to show up for work soon to find no Internet connectivity and a note from Comcast saying that they transferred our service to someplace in Florida.

Comcast reality

Update: Sure enough, they shut down our service the day after I wrote this. In the midst of a staff meeting we were doing over Skype, we lost our connection. After a few minutes isolating the problem to Comcast's network, we called them. They informed us that we hadn't paid our bill by its due date. Again, we were confused because our bill was due on Oct 28th ... does Comcast employ precogs now? (If you don't get it, start reading Philip K Dick or watch Minority Report.)

Apparently Comcast's accounting system reset our bill due date to IMMEDIATELY NOW and shut down our service after noticing it hadn't been paid. Not that they bothered to notify us in any way. But after getting someone on the phone at Comcast, they were able to work it out. We only lost about 1 hour of staff time between two people - way below average when dealing with this wretched company.

In trying to sort through it all, we realized we have received three different bills over the past two weeks and though the lovely CSR suggested we had a credit on our old account, we cannot find evidence of that anywhere. No worries, we'll just waste more staff time trying to sort out Comcast's mess from what should have been a simple move.

Throughout it all, the Comcast customer representatives have been very helpful - much like I imagine demons in hell might be. "Oh, we are very sorry, but management policy is for you to burn for all eternity. I wish there was something I could do about it, but I just work here. Can I help you in any other way?"

So why are communities smart to build their own networks? Because they can make sure local businesses, residents, and nonprofit organizations don't have to depend on this kind of pathetic service.

Tornado Destroys Homes, Cable Companies Charge Homeowners

When a tornado rips your town apart and destroys your home, should you have to pay extra fees to your cable provider? Of course not. But we continue to see these news stories about massive cable companies ripping off people who are just trying to find the energy to get by day to day.

Last year, we saw reports about Charter Cable telling Alabama tornado victims they had to "find" their cable boxes or pay for them.

According to the friend, Glenda Dillashaw, a Charter representative told her that Spain would need to find his cable box or be charged $212 for its loss.

Fortunately, when Spain followed up with Charter after receiving another bill, the representative told him not to worry about it, suggesting that either Charter has an ambiguous policy to deal with it or Spain found a customer support person who's heart had not yet been crushed by soul-numbing job of being a customer support representative for a massive cable company.

At least one other company has a formal policy in place for these situations:

Bright House Networks, whose service area includes hard-hit Pratt City, also expects its customers to file claims under homeowners' or renters' insurance to pay for lost or destroyed cable boxes. "That's how we normally handle it," spokesman Robert L. Smith said.

Fascinatingly, an article in Michigan claims Comcast does not have a policy in place for these situations. Following recent tornados in Michigan, Comcast customers who lost their homes were given the option of paying a cancellation fee or paying a reduced "vacation" rate for a service they could not use.

Comcast Logo

Katherine Pfeiffer and Kathy Crawford soon found that residents were being told that they would be responsible for damaged or lost cable boxes and modems.

Initially residents were told their accounts with Comcast would be put on “vacation” status, where a monthly fee of between $15 and $20 would be charged.

Comcast is supposedly "working on a solution" for these people.

The hubris of this massive companies is unreal. People who are waiting to hear if their home is repairable or has to be destroyed should not be confronted by the cable company with exorbitant fees. The subject should, quite literally, be the last thing on their minds. Local businesses understand this, big absentee cable companies do not.

The big cable providers exist because they have market power, which limits competition, leaving people with few options. Comcast does not compete on the basis of good customer service, it competes on the basis of being the only local alternative to satellite video, which is plagued by its own problems.

Disasters are one of the many times when the difference between local companies and absentee companies becomes most visible. Ironically, it is the big cable companies who are best poised to simply write off the damage of natural disasters -- but they refuse to do so, choosing instead to make the lives of storm victims that much worse.

Community networks provide an alternative. They are a cooperative part of the community, not a leech upon it.

Update: I spoke to a local private company I hold in high esteem that saw a number of its customers hit by horrible floods a few years back and they confirmed that they do not charge customers who are devastated by events out of their control. Like us, they have a low opinion of those who would charge. Also interesting: they have insurance to deal with such situations rather than expecting the victims to cover it with homeowner policies. Score another point for local ownership.