Tag: "time warner cable"

Posted August 17, 2012 by christopher

A Business Journal story yesterday reveals that Time Warner Cable is adding 81 jobs in Kansas City, an increase of 9% over its present area workforce:

The company, which currently employs about 900 locally, wants to fill customer service, finance, sales and other positions.

These are the jobs that result from competition - which does not exist when the providers a limited to a complacent duopoly comprised of a single cable company and a single telephone company. This is one of the way that community networks create jobs.

Community Networks create traditional jobs to offer their own services (and a multiplier effect by using local accounting, local marketing, and other services). But they also create more revenue for local papers (advertising) and job opportunities with rival companies that suddenly need to fight for subscribers.

On a different track, Light Reading says it has a copy of Google's franchise with the city and notes that Google is under no obligation to serve everyone in the city. However, Karl Bode rightly notes that it was the state legislature in Kansas, flush with AT&T campaign contributions, that revoked the authority of local governments to require cable providers to serve everyone.

Presently, 14 "fiberhoods" in Kansas and 49 in Missouri have met the registration goals and will be among the first served. Google will build to any fiberhood that meets the minimum threshold of interest.

One cannot blame Google then for only building where they will profit. In fact, this is what one would expect any rational profit-maximizing company to do. It is a failure of governance to require that everyone have access to an essential infrastructure. And we know what causes these failures of governance - systematic legalized bribery in our campaign finance system.

Light Reading does note that the franchise is far more generous to Google than overbuilders can typically negotiate. This is a result of Google offering such a unique product. Local leaders decided to effectively subsidize Google's network with favorable terms in the right-of-way, including making inspections as quick and painless as...

Read more
Posted July 28, 2012 by christopher

In keeping with our coverage of states that revoke local authority to prevent AT&T, Time Warner Cable, and the like from having to deal with any actual competition, we want to highlight the video below that explains how a modern bill becomes a law.

It ain't like it used to be and it doesn't have to be like this. North Carolina's anti-competition bill came only after years of campaign contributions and heavy lobbying. We discussed the history of that bill with Catharine Rice as well as the recent reprehensible South Carolina law.

Posted July 21, 2012 by lgonzalez

Time Warner Cable's announced intention to expand its usage based billing for broadband has recently received a little media attention. The company currently uses tiers for customers in parts of Texas, allowing customers to sign on to a plan which limits the amount of usage per month. If they come in under the plan amount (currently 5 gigabytes), they get a $5 dscount. If they go over, they are charged $1 per gigabyte over the tier limit.

One commentary we find particularly insightful is from Susan Crawford, "The Sledgehammer of usage-based billing." Crawford not only addresses TWC's billing change, but critiques New York Times' "Sweeping Effects as Bradband Moves To Meters" by Brian Stelter.

Crawford points out several statements in Stelter's article that sound rational on paper, but are actually "holes" in the fabric of reality. Based on what we have seen from companies like Time Warner Cable, we concur.

Stelter justifies Time Warner's decision to shift to usage-based billing based on the fact that its competitors are doing it. Crawford points out that:

Time Warner does not have competitors among cable companies – if by competition you mean a cable distributor that could constrain Time Warner’s pricing or ability to manage its pipe for its own purposes. Time Warner’s DOCSIS 3.0 services do compete with Verizon’s FiOS, but FiOS is available in just a tiny part of Time Warner’s footprint. The major cable distributors long ago divided up the country among themselves.

The Stelter article raises the issue of high usage and congestion, their connections to the usage tier billing model, and claims that there is no other way to handle high usage. Crawford calls out this error as it relates to the new billing plan:

Cable distributors have a choice: They could maintain the 90+ % margins they enjoy for data services and the astonishing levels of dividends and buybacks their stock produces, or they could rearchitect their networks to serve obvious consumer demand. But they are in harvesting mode, not expansion mode. And no competitor is pressuring them to expand.

Stelter quotes Comcast...

Read more
Posted July 19, 2012 by lgonzalez

Quite some time ago, we let you know about the plans and funding for the Medina County Fiber Network (MFCN). The network, owned by the Medina County Port Authority (MCPA) began construction in March, 2011, and is nearing completion. Jennifer Pignolet, reported in the Medina GazetteOnline, that the network just signed on their first customer, Highland Schools.

Apparently, the schools contract with its current provider, Time Warner Cable, is about to expire. While connecting Highland Schools now may be ahead of schedule, the county fiber committee can accommodate their needs. As an added bonus, the new relationship is more economical for the schools. From the article:

“Their situation needing to be addressed immediately certainly moved them to the front of the line,” [said Jim Gerspacher, chairman of the county’s fiber committee].

While the $14 million network is still months away from full completion, Gerspacher said there is enough infrastructure in place to get Highland online.

The school will have full Internet and phone service and will have all its buildings connected to one network.

Highland Technology Director Roger Saffle said the district will save close to $90,000 a year by switching from Time Warner to the Medina County network.

“It will maintain the access we already have with a cheaper cost,” Saffle said.

Highland Schools is moving from a $100,000 per year Time Warner Cable contract (or about $8,333 per month). The schools now will pay $1,500 each month to the MCPA and, according to Saffle, will be able to apply for federal grant funding to recover 40% of that monthly fee.

In 2008, OneCommunity and the MCPA began a partnership to plan and build the network. OneCommunity received a $44 million broadband stimulus grant in 2010 to extend fiber to 22 Ohio counties. MCPA received $1.6 million of that stimulus for their County network. The remainder of the $13.8 million project was covered by 20-year revenue development bonds issued by the MCPA.

OneCommunity will manage operations when the project is...

Read more
Posted July 6, 2012 by christopher

This is a guest post, authored by Jay April. Jay is a strong supporter of local authority and community media. He is a documentary filmmaker, video journalist, and new media innovator who now happens to find himself running a community TV and radio station in Maui, Hawaii.

There is a new land grab in Hawaii whereby the government is giving away valuable public land to private business without getting anything in return for the people. Sound familiar? It has happened before in Hawaii – with agriculture, with beaches, with water and now, with the public airwaves. This time the difference is that the land in question is in the form of public electronic real estate, the electromagnetic spectrum. These are the frequencies you pay for to watch cable TV, use the internet or talk on the phone.

Most people don’t know this, but in exchange for using public rights of way - airwaves, telephone poles, electric wires and underground conduits - cable monopolies like Oceanic Time Warner have to pay “rent” in the form of community access channels like Olelo on Oahu, Akaku on Maui, Na Leo on Big Island and Hoike on Kauai. Now, because of new technology, the frequencies or space these channels occupy have suddenly become extremely profitable to cable companies. (Not unlike how lands once granted to indigenous people by treaty became more valuable once minerals were discovered.) That is why Time Warner wants to take over this public property and move these channels to inferior locations while vastly reducing the amount of non-commercial electronic real estate. That is why, if you are an Oceanic Time Warner Cable subscriber, channels are disappearing from your channel line-up altogether, or re-appearing someplace else. So far, instead of holding your land in public trust, the state is falling for the Time Warner plan - hook, line and sinker.

Maybe that is not such a bad thing after all. Oceanic says this techy move will free up more space on the cable for them to bring us all kinds of goodies like High Definition (HD) channels, video on demand channels, enhanced services and the holy grail of faster, better and more affordable internet for all. That’s a good thing, right? We all want to believe. We really do. The thing Time Warner forgot to mention was…well…the several new adult services that have recently appeared as a result of moving your access channels to cable no man’s land.

...

Read more
Posted June 11, 2012 by christopher

Over the weekend, while listening to an old episode of Star Talk Radio with Neil deGrasse Tyson, I was reminded of just how incredible the open Internet is. And what happens when a few massive corporations dominate the airwaves.

Neil was interviewing Nichelle Nichols, the actress who played Lt. Uhura on Star Trek - an African-American woman who just happened to be the 4th in command of a starship in the distant future. At about 9 minutes into the podcast, she begins telling an amazing story. In short, she wanted to quit after the first season to do stage productions. But the Reverend Martin Luther King Jr. and others prevailed on her to continue because her presence on TV was revolutionary.

As someone who grew up watching sports and the Dukes of Hazzard, I never understood why some were so attached to Gene Roddenberry, the creator of Star Trek. But in listening to this interview I began to understand. Sure, I grew up identifying with "them Duke boys" but what if I hadn't?

Long before the Long Tail, the few channels of television available aimed for the white middle class demographic. Portraying African-Americans in any position of authority was so rare that Neil deGrasse Tyson regularly exclaims that before seeing Star Trek, the science fiction of TVs and movies provided no confirmation that black people would be around in the future.

In 1967, having an African-American woman on television in a position of authority was so novel that one of our greatest Americans, Reverend Martin Luther King Jr., went out of his way at an NAACP event to tell her what an inspiration she was to his family.

Big corporations aren't evil. But they have one goal -- increase their profits year after year. During the civil rights era, increasing profits year after year meant avoiding controversy. Somehow Gene Roddenberry broke through with Star Trek, inspiring many who were unused to any positive representation on television.

Unfortunately, in 2012, it seems that maximizing profits includes creating as much controversy as possible - how times have changed.

Nonetheless, we live temporarily in a time when content creators aspire to be "viral." Ten years ago, anyone who had a great idea for a channel had to give partial ownership to Comcast or other powerful corporations to have a chance of people seeing it. Not...

Read more
Posted May 17, 2012 by christopher

We continue to watch the Gig.U project with interest as some universities are teaming up with providers to deliver gigabit services to selected areas, generally around high tech campuses.

One of the first project announcements has come from Orono, Maine. The University of Maine and a private company called GWI are teaming up to bring real broadband to Main Street.

The gigabit announcement came on the heels of a major announcement from Time Warner Cable - they are increasing residential speeds in Maine from 8-10 Mbps (or from 15 to 20 Mbps for those speed demons) and doubling their upstream speeds from .5 to 1 Mbps (or from 1 to 2 Mbps for those living in the fast lane).

So Orono, which is talking about speeds of 50-1000 times faster, should have quite the advantage.

We last heard of GWI due to its involvement in the Three-Ring Binder project that brought middle mile connections throughout the state to start recovering from the long-standing underinvestment from Verizon (now FairPoint). We wrote about FairPoint's attempt to kill competition before it started.

Now GWI will be building a gigabit open access network in this community that will offer much faster speeds at much lower prices than incumbent operators do. It is certainly an improvement over the status quo in the short term, as noted by the Bangor Daily News.

“We will plant the first seed in fertile economic soil,” he said. Kittredge said the Orono and Old Town area, with the University of Maine at the center, is prime real estate for getting the high-speed service off the ground and considering whether it will work in larger markets such as Bangor or rural markets in northern and eastern Maine.

For area businesses and researchers inside and outside the...

Read more
Posted March 20, 2012 by christopher

Less than a year after North Carolina became the 19th state to create barriers to community networks, effectively outlawing them, the non-partisan organization Follow the Money has crunched the numbers and found that private telecommunications interests donated quite heavily to lawmakers that pushed their bill through the Legislature:

According to a report by the National Institute on Money in State Politics, Dialing Up the Dollars: Telecommunication Interests Donated Heavily to NC Lawmakers, Republican lawmakers and those who held key leadership positions, sponsored the bill, and/or who voted in favor of the bill received considerably more campaign contributions from the telecommunication donors than did their colleagues. For example, lawmakers who voted in favor of HB 129 received on average 76 percent more than the average received by those who voted against the bill. The four primary sponsors of the bill received an average of $9,438 each, more than double the $3,658 given on average to lawmakers who did not sponsor the bill.

Recall that Time Warner Cable pushed this bill for years with some help from AT&T, CenturyLink, and others that stood to benefit by limiting broadband competition. But the Legislature wisely refused to enact it... until 2011.

Now we have a better sense of what may have shifted the balance. Consider this:

Thom Tillis

Thom Tillis, who became speaker of the house in 2011, received $37,000 in 2010–2011 (despite running unopposed in 2010), which is more than any other lawmaker and significantly more than the $4,250 he received 2006–2008 combined. AT&T, Time Warner Cable, and Verizon each gave Tillis $1,000 in early-mid January, just before he was sworn in as speaker on January 26. Tillis voted for the bill, and was in a key position to ensure it moved along the legislative pipeline.

Running unopposed for office, he collected more money from the cable and phone companies than any other Representative and almost 10 times as much as in the previous two cycle combined. As Speaker, he set the agenda and...

Read more
Posted January 3, 2012 by christopher

It's a new year, but most of us are still stuck with the same old DSL and cable monopolies. Though many communities have built their own networks to create competition and numerous other benefits, nearly half of the 50 states have enacted legislation to make it harder for communities to build their own networks.

Fortunately, this practice has increasingly come under scrutiny. Unfortunately, we expect to see massive cable and telephone corporations use their unrivaled lobbying power to pass more laws in 2012 like the North Carolina law pushed by Time Warner Cable to essentially stop new community broadband networks.

The FCC's National Broadband Plan calls for all local governments to be free of state barriers (created by big cable and phone companies trying to limit competition). Recommendation 8.19: Congress should make clear that Tribal, state, regional and local governments can build broadband networks.

But modern day railroad barons like Time Warner Cable, AT&T, etc., have a stranglehold on a Congress that depends on their campaign contributions and a national capital built on the lobbying largesse of dominant industries that want to throttle any threats to their businesses. (Hat tip to the Rootstrikers that are trying to fix that mess.)

We occasionally put together a list of notable achievements of these few companies that dominate access to the Internet across the United States. The last one is available here.

FCC Logo

As you read this, remember that the FCC's National Broadband Plan largely places the future of Internet access in the hands of these corporations. On the few occasions the FCC tries to defend the public from their schemes to rip-off...

Read more
Posted November 4, 2011 by christopher

When it comes to expanding access to the Internet across the US, the federal government has long looked first to the private sector, ignoring hundreds of years of experience showing that unaccountable private companies cannot be trusted to sufficiently invest in or govern essential infrastructure.

Inevitably, they price access to high and invest too little as they maxmize their profits -- thereby minimizing the profits of all other parts of the economy.

So let's take a little survey of the progress we see from these companies.

We have long railed against the Verizon -> FairPoint fiasco in New England that left Verizon much richer at the expense of residents and businesses in rural Vermont, New Hampshire, and Maine particularly. Well, FairPoint creditors have realized the depth of Verizon's scam and are suing Verizon for $2 billion. Read the complaint [pdf].

According to the complaint (pdf), Verizon not only made out like a financial bandit up front, but took advantage of regulatory delays to strip mine the assets of anything of value, including core IP network components, business services, and localized billing and support assets required to support the three states. Verizon then billed out their support assistance for millions per month during the very rocky transition, during which time 911 and other services saw repeated outages, resulting in millions more in refund penalties.

Karl Bode is right to criticize the state authorities that allowed this fiasco to occur. Their inability to regulate in the public interest has hurt everyone stuck in the mess. While we can expect powerful companies like Verizon to try to game the system at every opportunity, there is no excuse for making it so easy for them.

Frontier Logo

As long as we are talking about Verizon shedding its rural investments, let's take a look at how Frontier is doing since it inherited thousands upon thousands of FiOS customers as part of its recent deal with Verizon. Frontier has decided the best approach is to...

Read more

Pages

Subscribe to time warner cable