Spectrum internet is getting kicked out of New York
theverge.com
theverge.com
As a consumer, this transition will be annoying to deal with, but as a resident, I'm proud of my state for pushing expansion of rural broadband where federal efforts have failed. Not sure how the transition will work though, as Spectrum/TWC own the cable infrastructure.
Spectrum has sent a veritable tree's worth of junk mail to my house in the past year, goading me to sign up for their television and landline phone bundle. Spectrum, please die quickly.
Not me. I live in a small apartment that I pay tens of thousands of dollars a year for. In Franklin County people can get a lot more space for a lot less money. Why should I subsidize their broadband rather than them subsidizing my living space?
Life is all about tradeoffs. Wanting to get all the benefits of your choices and have other people pay to ameliorate the downsides is understandable but unreasonable.
If we are going to subsidize broadband at all, we should do it statewide and means test it.
And housing isn't‽
If we keep having to subsidise these areas because it is uneconomical to build infrastructure there, and most new technologies require infrastructure development, does it really make sense for people to keep living there?
The Rural Electrification Act was also a work program in the middle of the Great Depression, so there were some pretty good reasons to do it back then besides just altruism.
Though I honestly think we don't actually even need real subsidies here, supporting municipal broadband providers and One Touch Make Ready regulation (which NY could have passed as a State without the FCC) would probably do more good than holding Spectrum's feet to the fire.
Do you like to eat? You can't run a farm inside a city. You also can't run a farm alone, so there needs to be a community and infrastructure around those farms.
This isn't about food nor farmers.
No, I just pay for their welfare while they are busy voting for Republicans.
An observation that doesn't particularly enrich the conversation, unless the point you're making is that we should do away with all government regulation of private companies?
Regulation is appropriate where there is some market failure or externality you're trying to address. E.g. regulating pollution is economically efficient, because it prevents companies from being able to externalize their costs onto the public.
It's not appropriate to use regulation to simply achieve an end result you hope to achieve just because you're unhappy with the market equilibrium. If the end goal really is important, than rather than distort the market for everyone else the government should simply provide the desired service or pay for it directly.
That's the most libertarian-progressive argument I've ever heard. ;)
If I had to take a position on this one, I'd probably be in favor of it, even though I dislike subsidies in general, for the reasons some others have stated -- though I'd have to think more about it. And I don't think we should assume (as further up) that people who live in rural areas are doing it for subsidies like this. But this regulation is very much a subsidy.
So is a rural build requirement a subsidy? Sure, but so is a requirement not to use lead paint, or to avoid dumping toxins into waterways, or to use rights of way, or to maintain the ability for the government to tap calls.
Consequently, it's disingenuous to argue against this specifically because it's a subsidy.
Maybe rural access isn't a social good we want to promote, but it's not different than the massive number of other things we're paying for (vs a completely free market) in the same way.
We’re slowly moving towards municipal broadband step by step, so it’ll take some time where we still need to tolerate for-profit last mile ISPs.
What's really telling is that while many in the U.S. want more utility-style regulation, Europe is actively getting away from it. For example, our universal service cross-subsidy system is an antediluvian throwback compared to Sweden (tax credit of about $600 for rural folks to build their own fiber).
If you built airplanes the way U.S. municipal entities regulate utilities, government officials would just declare the acceleration of gravity to be 2.5 m/s/s and pat themselves on the back for basically having solved the problem. Not only do municipal-level regulators not really understand the underlying economics of the system, but they don't even realize they're dealing with an economic system. They don't understand that the economy that cannot simply be moved a desired end state by legislative fiat, but rather takes legislation as an input into an economic process that produces an equilibrium state that might include many unintended consequences, and may not include the desired end state at all. This is a problem with regulators generally, but is particularly a problem in the U.S. In Europe, things like telecom regulation are handled at the national level by the most sophisticated regulators and economists. In the U.S., most important telecom decisions are made by generalist municipal bodies, who have little understanding of these issues.
And, of course, there is no "universal service" for water, sewer, or natural gas. Our county builds out public water/sewer based on density, and if you get water/sewer to your house you're on the hook for $20,000+ in construction costs. This is typical.
It's also worth noting that out of the top 10 countries for internet speeds (on Akamai's tests), all have highly deregulated internet, and none have state-owned broadband service. Denmark, for example, got rid of its telecom regulator in 2011: https://techliberation.com/2017/03/27/who-needs-a-telecom-re.... If we were a "progressive" European country, we might well be trying to figure out how to privatize WMATA or the NYC MTA. Instead, we're trying to figure out how to turn one of the few bits of American infrastructure that isn't an international embarrassment into a public service.
My understanding is that the private companies that ran Brooklyn Manhattan transit and others couldn’t run as private companies which is how we have the MTA? They started private as well, right?
If you’re worried about cost, follow the money. Why are police officers the highest paid MTA employees? For all this talk of union busting, why isn’t any of it directed at the police?
Not a big deal, pretty common, and pretty common sense. These states want to bring internet to everyone.
They are allowing concentration of power, if that power promises to help them accomplish some of their goals.
The most damning example is, of course, the reason why we have so much market concentration in broadband to begin with. State and municipal regulators thought they could get universal cable coverage for their constituents, so they gave out municipal franchise monopolies with universal-coverage obligations. They thought they were getting a free lunch, instead they created massive market distortion.
Letting them merge is absolutely not a 'free lunch' situation. It's a trade.
To go back to OP's point: the government telling a company that the have to service a bunch of uneconomic households is a subsidy to those households. Either other customers' costs will rise in order to pay for that service, or capital will be diverted from upgrading or expanding service to economic customers. There is a very large economic cost to servicing uneconomic customers--that money has to come from somewhere. The idea that you can rig the merger so that it comes out of corporate profits with no consumer impact is nonsense.
Which we have decided as a society is worth it. Everyone should be able to communicate, and it helps those people be more productive too, helping everyone.
> Either other customers' costs will rise in order to pay for that service, or capital will be diverted from upgrading or expanding service to economic customers.
On the other hand, having less competition for something with huge last-mile costs can save money overall. The tricky part is keeping the downsides of low competition in check, by forcing more responsibility on the company as it gets more power.
> The idea that you can rig the merger so that it comes out of corporate profits with no consumer impact is nonsense.
If the merger let them go from negative profits to $10B, then the consumer impact already happened. If none of that can be rigged into rural expansion, then the merger shouldn't have been allowed, and they can go back to minimal profits.
Except we haven't. One of the consequences of imposing these sorts of obligations through hidden cross subsidies is that it obscures the cost of these outcomes. Would the public be willing to pay through taxes the $X million it would cost to serve those uneconomic households? Probably not. But when a regulator forces them to pay that amount indirectly, they're not in a position to evaluate whether it is "worth it." (Which is why unelected bureaucrats love these "free lunch" measures--it allows them to tax the public indirectly for things the public would not willingly pay for directly.)
> On the other hand, having less competition for something with huge last-mile costs can save money overall. The tricky part is keeping the downsides of low competition in check, by forcing more responsibility on the company as it gets more power.
This is exactly the New Deal-era thinking that has been resoundingly debunked. Regulators applied this kind of thinking to everything from railroads to airlines. But deregulation of those things has yielded enormous real gains. (And not just in the U.S., in many respects western Europe and Japan have been more aggressive in deregulation than the U.S., and have seen concomitant benefits.)
> If the merger let them go from negative profits to $10B, then the consumer impact already happened.
TWC and Charter did not previously compete, so it's unlikely that the swing is due to increased pricing power. Rather, it's more likely due to (1) the fact that TWC was already profitable; and (2) reduced expenses through the elimination of internal redundancy.
Yes we did. Look at phone rules. We 100% decided that.
> deregulation
You don't need trains and airlines to serve every house. And the most effective way to avoid regulation is to avoid monopolies, I'd say. Do you think "no merger, no rules applied" would have been better?
> reduced expenses through the elimination of internal redundancy.
...I think that directly contradicts "The idea that you can rig the merger so that it comes out of corporate profits with no consumer impact is nonsense."
We decided, in the 1930s, to bring phone service everywhere. That has been done and the expenses have been incurred. We never decided to take on new expenses to extend that concept to broadband. We certainly never decided that the way we should achieve that outcome is through wired communications, rather than cheaper wireless communications. The FCC's attempts to do so have been achieved by unelected bureaucrats through regulatory fiat.
> You don't need trains and airlines to serve every house.
But you do need trains and airlines to serve every region above a given size, and that raises the same considerations about duplicated infrastructure.
> I'd say. Do you think "no merger, no rules applied" would have been better?
The merger is a red herring, since TWC and Charter did not previously compete with each other. What I think would've been better would have been to abandon build-out requirements, so that they (or other companies) could come in and compete in areas that will support competition. Then, if there are areas that we feel like aren't being sufficiently served, we can use tax dollars to close those gaps. That allows you to serve the people who need it (and subjects those efforts to cost-benefit analysis in terms of whether cheaper or more expensive technology is used to achieve the result). And it prevents you from distorting competition in areas that could reasonably support 2-3 ISPs.
> ...I think that directly contradicts "The idea that you can rig the merger so that it comes out of corporate profits with no consumer impact is nonsense."
In what way? The government can't control what the company does with the savings it achieves from the merger.
Now you're explaining a way for the merger to free up huge amounts of money.
If they free up lots of money by merging, they could use some of it to fund expansion without impacting customers.
The government can't force them to use profits and expenses to cancel each other out, but it's not exactly an esoteric behavior. Especially when the same contract is responsible for both. The idea of it happening is definitely not "nonsense".
This makes me sad. We need less means testing, not more. I fully support a more progressive tax scheme but we should eliminate means testing from government services.
I’ve gone from 15 to 30 to 60 to 100 and I’m currently at 200. There’s probably been two outages during that entire time period.
I see so many people in other parts of the country complaining about their providers and it makes me realize how good we have it here. ATT is still terrible though.
Which is all well and good except in other areas nearby TWC went under that same umbrella...and TWC was always terrible and totally guilty of exactly the behavior you're describing. Under the Spectrum name, they continue to be terrible.
Very shortly afterwards, TimeWarner sold out to Spectrum which promptly jacked up our rate by about 40%.
I asked Spectrum how I could lower my rate. They said "Sorry, we've eliminated the old 100 Mbps service." Now I'm stuck with the new higher price.
Is where you live NYC? The quality of service of US ISPs seems to vary largely depending on how much local competition there is.
There isn't going to be a transition, at least not in the short term, as this will likely be tied up in the courts for some time, and probably settled.
Finally, I got irritated and penned letters to my state AG and state Senator. Spectrum went into overdrive. Credited a year of service, wanted me to get on a conference call with their GC, a voicemail wishing me happy birthday (super weird).
Should have sensed their vulnerability.
Business, sure. But catching false positives is what voicemail is for.
Their calls have the obligatory “this call may be recorded for training...”
Guy says “Hello”, I say “I do not consent to be recorded”. Guy says goodbye and haven’t been called back since.
Did you tell spectrum you had written to the AG and senator? What prompted Spectum's response?
Who left the birthday message, or was it automated?
When the deputy AG responded, they copied Charter (this is standard for regulatory complaints).
Sure! I filed a complaint with the Bureau of Internet & Technology under New York's Attorney General [1]. I've pasted the redacted text below.
"In 2017 I called Spectrum because the rate we were being billed ($104.99) was higher than what we had signed up for (around $80) and more than the rate on Spectrum's Residential Rate Card Information & Disclosure for our apartment (https://www.spectrum.com/browse/content/ratecard.html). I was told, on the phone, that the rate would be lowered to $89.99 per month.
On February 20th, 2018 I was charged $104.99 by Spectrum. I called and was told that my billing information would be changed to $89.99 for future bills (see Change of Service Confirmation, attached).
On March 2nd, 2018 we received a bill for $104.99, due March 18th, 2018. I called (855) 243-8892, the support phone number provided on Spectrum's website (https://www.spectrum.com/contact-us.html), and spoke with [PERSON] (employee number [redacted]). [PERSON] acknowledged the Change of Service Confirmation, and said a technical error had prevented my billing information from being able to be updated. [PERSON] discussed the matter with one of her supervisors, [SUPERVISOR], who said a technician needed to visit my apartment to replace my modem. Until this visit was done, the billing information could not be changed. I asked [PERSON] for anything in writing confirming that after an in-person visit, my billing information would be updated. [PERSON] said she was technically unable to fulfill that request. [PERSON] then said a technical issue prevented her from scheduling a technician visit to my apartment."
...
I then called my State Senator’s office and asked who deals with telecom policy. Got their name and sent them a copy of the complaint along with a very brief cover letter.
[1] https://formsnym.ag.ny.gov/OAGOnlineSubmissionForm/faces/OAG...
The saddest revelation through all this is that I couldn't find any other provider in my area (DTLA) which can promise me 100Mbps. I'm stuck with them and I'm not a happy customer! I so wish there were other competing ISPs in this area..
Nothing else in my area gets even close to 100Mbps either. I hope NYS can work something out or I'm going to have to move.
I share your sentiments.. In my mind decent internet access is more of a right than an accessory today. Those without it are disproportionately disadvantaged in numerous ways. I can imagine doing something drastic, in protest, if I'm pushed.
It's not because Verizon is nicer than Spectrum. It's because my county makes it cheap, easy, and relatively hassle free to build and maintain the infrastructure. The love affair places like NY and CA have with regulation is self-defeating. There is a reason why fricking Kansas City has fiber and LA doesn't (and NYC got it a decade after backwaters in MD and VA).
Why should they do more than honor the contract if you demand to stick with it?
I would expect the merger agreement to say that they have to make higher speeds available, not that they have to deliver a higher level of service than is specified in existing contracts.
Is this a new type of turf war?
There are a large number of ISPs that use licensed PTP gear on rooftops in NYC already, in combination with their fiber networks.
If you have a specific area in mind for a rural part of the state, send me an email address and I'll contact you to see what might be possible.
lylecubed AT gmail
And various types of PTP links for node-to-node links.
And every month I get several cheerful letters about "deals" that aren't deals. I really hate Spectrum.
I pay $90 for 400/20 in Manhattan. $70 for 100 Mbps is insane.
The cheapest I am offered is $14.99 for 3/1 (as well as something called 30/4 Spectrum Assist).
I suggest you check out your rate card [1]. These are the services and rates you were legally offered, and is required to be disclosed to you under New York law.
In Seattle, I get 100mbps for $60. Or 1000 for $80. (Paying $90 for only 20 up is insane ;)
I'm fortunate that AT&T fiber has been available in my neighborhood for about a year now ($70/mo for gigabit service). Before that I was stuck with TWC's ever increasing prices and worsening service. Now that it's Spectrum it's still more expensive for slower, less reliable service.
So the 60 day period after which Spectrum would cease operations seems to end September 25, a week before online voter registration ends for the November elections... and even independent of that, it's at a critical moment for campaigning.
For many without a fiber connection in the NYC area, Optimum is now the only game in town, and it has no reason not to price gouge (there's no regulation forcing them to offer now-unnecessary promotional pricing to people). So many low-income people in old housing may need to go without internet and cable during the time immediately preceding the elections. Yes, most phones have data plans nowadays, but quick question: how many people do you know who would be able to print the PDF voter registration form easily from their computer, but would have no idea how to do so from their phone, and can't figure out how to set up a hotspot?
Imagine if New York were a swing state - it's normally not. On the one hand, you're making it suddenly more difficult to register to vote last-minute; that's not necessarily voter suppression, but it certainly smells like it. On the other hand, you're suddenly raising the effective price of (for example) Fox News/MSNBC, their online presences, access to Facebook on desktop computers (where ads are more prevalent), and streaming access to both Alex Jones and Bill Maher. You're cutting people off from information that reinforces their world view, and (gasp) they may need to watch basic cable, the most "mainstream" of mainstream media, while eating breakfast. That's ridiculously impactful.
Perhaps some of these concerns are overblown. Perhaps Optimum will, um, optimize for long-term goodwill and provide a reasonable upgrade path. But at the very least, we should be discussing these implications.
what a ridiculously false equivalency
Any lack of equivalency, though, should not reflect on the merit of the underlying issue: that a decision to cut off a vital service provider is not without political consequences.
> During the transition process, Charter must continue to comply with all local franchises it holds in New York State and all obligations under the Public Service Law and the Commission regulations. Charter must ensure no interruption in service is experienced by customers, and, in the event that Charter does not do so, the Commission will take further steps, including seeking injunctive relief in Supreme Court in order to protect New York consumers.
I can guarantee you they're not trying to force them to cease operations. There are too many people with triple-play voip and ATA-to-SIP adapters that handle 911/E911 calls to do that.
They are trying to force them to sell the regional ex-TWTC cable assets they acquired in the merger, to another cable operator.
The likelihood of anyone at charter being told to shut off network interfaces/shut off the network in general is about zero percent.
As far as robocalls, I had them before, and I still have them now. At least once a month they call me and try to sell me on some other service of theirs. Luckily they use the same phone number on caller ID, so I can avoid the calls.
I think there are many who would argue they were awful long before the Spectrum rebranding. I had the misfortune of using their service some years ago. Not that I had any choice as there is no other choice in most areas there.
Probably not because of the merger, though. We have a local company that rolled out fiber in town that is eating their lunch in subscribers, and it is beautiful to see.
Spectrum raised their base speed to 100 Mbps recently, and our local company raised their base to 300Mbps like "checkmate".
Loving ALLO: https://www.allocommunications.com/
https://www.nytimes.com/2017/03/13/nyregion/ny-sues-verizon-...
Verizon was at least smarter about being technically correct, they apparently ran fiber "past every household in the city". The joke probably being, good fucking luck getting your building hooked up to it. If they'd even do it, it'd probably cost you thousands
https://www1.nyc.gov/assets/doitt/downloads/pdf/verizon_nyc_...
From Spectrum's Brooklyn rate card (link below): Spectrum Internet 200/10 = $64.99 Spectrum Internet Ultra 400/20 = $89.99 Spectrum Internet Gig = $124.99
Looks like TWC had topped out at 300MB, and they charged about $110/mo
Spectrum Brooklyn rate card: https://www.spectrum.com/browse/content/ratecard.html
Time Warner Cable Brooklyn rate card pre-merger: https://www.spectrum.com/content/dam/spectrum/residential/en...
... we hope. That certainly wasn't the case the last time (when Spectrum bought TWC). As far as I can tell, NYS doesn't have any idea who's going to replace Spectrum.
Perhaps the best part is that they just give you an Ethernet connection. You can bring your own router and there’s no need for any sort of modem.
Apparently they need to come up with some orderly plan and not just give them a nice "f-you, its been fun."
Not too sure how motivated they'll be for it to be orderly as they have zero incentive for it to be though...
Gotta kick one out to make room for the other. New York isn't about to let every ISP in the nation run independent lines over all of the poles in the state.
The good thing is that when the replacement company steps up (or wins the bid), it will know that the state is serious about keeping obligations.
OTOH, this might be when we find out just how much collusion there is between the big companies, if none decide to fill the gap, thus putting pressure on the AG from the voters.
Why not? I would expect the barrier to entry there to be the expense of doing so, not regulatory refusal.
It makes sense for a regulator to require "universal" coverage and prohibit cherry-picking only the profitable areas, which brings the cost barrier back into focus. However, encouraging a monopology would seem to encourage a similar result.
Has the state actually expressed or implied such a policy?
A quick GIS of telephone poles in India or Thailand will provide you an answer.
To whit, I believe you're presenting a false dichotomy between monopoly and completely unregulate free-for-all.
People don't want massive bunches of cable lines running through their neighborhoods. Most people don't even like the few they have unless they're underground and there aren't access pillars every hundred feet.
Voters aren't going to let regulators ugly up their neighborhoods and drive their home values down.
Mostly, I'm trying to determine if your assertion was a speculation based on, say, evidence (either from NYS previous behavior or from another jurisdiction), or strictly your intuition or guesswork.
So far, I've only seen the latter. My own intuition is this has nothing to do with voters and everything to do with legislators and administrative regulators, over whom voters have only a vague influence and only after deals like this are already done.
Even so, do you even have anything to back up your claim that voters (and most of them, at that) care about additional cables on utility poles, especially in New York State (and not just something that shows people merely prefer underground utilities to pole-mounted, which is undisputed)?