Comcast vs. the Cord Cutters
nytimes.com
nytimes.com
And this is why (in general) Americans are in debt. They don't understand that ANY savings, is savings. And that "just" saving 20,30,50 dollars a month adds up over 5-10 years.
I went thru this with my daughters a decade or so ago. We kept track of all the "Gee Dad, it's only 10 bucks" conversations. At the end of the year we reviewed what they accumulated, which was almost nothing, their items were either used up, no longer needed/wanted, broken, or tossed away. On the other hand, the $1400+ dollars, all stacked up in a nice pile of $20's looked like (and was to them) real money, a nice weekend trip, a new bike, a new laptop, etc. I'm happy to say my daughters did much better after that living experiment.
Unfortunately for most Americans, they just can't say no to the moment, and banks (and other service providers) are all to willingly to exploit their lack of judgement.
Comcast has carefully set up pricing to get you whether you watch shows the old-fashioned way, on a boob-tube fed with a cable, or whether you prefer to veg out with Netflix on your iPad
They aren't talking about "Oh it's only $10 more, so why not". They are talking about how you can't escape most of the Comcast Tax, even if you ditch cable. That's the whole theme of the article.
Anyways, I think Comcast is getting at that they throw in Internet or TV for "free" with triple-play combos, so you literally aren't saving anything. In some cases, you actually pay more (for a limited time?) to decline services.
Oh, clearly. It's that rather than the terms of student loans and such. Wouldn't want reality to get in the way of depression-era morality plays ... "up hill both ways, in the snow!!" if that makes you feel better.
Just look at JCPs recent situation - they tried to eliminate sales, implementing consistent, standard pricing on all merchandise (instead of the previous mark-up-to-mark-down method), and consumers hated it. The metrics were a disaster.
If the JCP numbers are any indication, consumers know the price of everything and the value of nothing - they'd rather pay more than they should after a fake 40% discount because "full price is for suckers", regardless of the actual quality:price value ratio.
The problem with cable pricing isn't that consumers are ignorant to the deals - they're most certainly eyeing price and discounts. It's that cable companies have established a false baseline to decrease the effectiveness of cord-cutting.
As a pricing strategy, it's nothing new. You can get 2 liters of soda for 99c, and a 12 oz bottle for 1.50. It's a psychological price bump - not based on value, but manufactured to steer the "savvy" (read: performing as expected) buyer to the "smart" (read: preselected) choice.
It's just a little more disheartening when its application moves from soft drinks to the spread of human knowledge.
Usually it's $1.50 for a chilled 12 oz bottle, and $0.99 for a warm 2 liter. It's a convenience charge.
ATT Uverse is now available in my area, their internet is a little more than half what I'm paying for Comcast Basic + Internet, and since I can't watch the TV anyway because I refuse to use their box, I don't need any TV component of the service. I've heard mixed stories about Uverse but they seem to do better than Comcast in the Netflix rankings so I'll probably give them a try.
We don't even watch the cable TV that we "pay" (-$1) for, as our actual programming comes in via (free) over-the-air antenna mounted in the attic and recorded onto 2 TiVos.
For it to not suck I think the physical circumstances have to change. Maybe there will be some kind of tech breakthrough with wireless technology. Or maybe we will change the laws so that everyone has the right to lay down a cable along any public road or freeway as long as it doesn't pose a significant threat to traffic.
But seems like its hard to make a law that creates a fair and democratic situation when you have limited access to such a critical resource in fairly specific places in under the street.
I mean, if there is already a place for fiber under the street, and you really need another line or whatever they call them, you can't dig another trench or whatever in the street. You have to put it with the other ones, in which case you are at the mercy of whoever controls access to that place where the lines go. If there really isn't a need for a new fiber line, then whoever controls the existing ones has a lot of power.
Just seems like the fact that there is a specific place these lines go, and a big expense and regulation, is what is causing the issues with pricing. If this were someone's brain being wired up like this, by a heavily regulated and monopolized cable industry, that person would be retarded.
I say we invent a glue or something that will attach a fiber strand to the street, a pole, or the side of a building, and declare open season. Just put them all over the place. Like a spider web, but on the street.
LOL. Sounds crazy, but I think it might actually be workable if we keep it in a thin layer on the ground. And pretty much anything would be better than having our balls kept in a vice like this by a handful of giant companies and governments.
I was thinking more in terms of getting governments to go along with it, and having enough capital to do the job, and enough capital to get access from the people who own the spaces where the cables go or are going to go.
The thing about State-sanctioned monopolies is that since their whole revenue stream depends on their relation to governments, they spend a substantial portion of their income getting influence within our presently rather corrupt government system.
It's hard to companies that operate more on the "open market" to move into a "turf" of this sort.
Often that licensing is done at a statewide level, rather than city by city.
The franchise agreement is to actually offer service - not to place crap on the poles.
The railway (ie. "socialist") optical lines :
1) use ancient infrastructure on SDH (on direct current, meaning they have to buy ridiculously expensive equipment. Not that they've looked for better in the last 20 years)
1b) therefore the speeds attainable over government fiber are pathetic, compared to private lines.
2) are VERY hard to deal with.
3) are very expensive compared to private lines (except in cases where, read on)
4) delays are legendary (months to open up a frequency on an existing tract that usually works fine if I turn it up before contract agreement)
5) Termination fees are ridiculous, and of course, you can't just do it yourself. Suppose you have fiber delivered to the edge of your own property and want it linked up to the inside of your building. You'd think, well I'll just do that, costs me $150 in equipment, a drill, a shovel and an afternoon. No dice. You have to pay $18000 to the railway company to make this happen.
6) Their engineers are utterly clueless when it comes to fiber. "I want a 6 km fiber from X to Y, are you going to regen ? Using what equipment ?". You get empty stares. They regen if they pass a regen station, using their equipment (that they can't even NAME) and if not, they don't. You're screwed if they regen. There's no good reason to regen a 6km fiber since 1985 or so. AARGH. Then you get to explain to your boss how you just paid $35k for a fiber, and you need to redo it, lovely. Or you have to get a 20km cable where a 3 km one would normally suffice but you need to avoid regen stations. Great.
They also have advantages, of course
1) reach. You need a fiber delivered to any city that has a railway line ? They have one. You need a fiber in a LEX ? They've got fibers to every LEX.
2) they are utterly unbeatable if you need a new fiber. They can lay down fiber while moving on average 30km/h. Digging fiber has speeds that are expressed in meters/week.
Now I don't know why this happens, but I'm not very impressed with a government based fiber holding company. And yes, they do connect end-users. Hell, it's usually a better idea to use the existing telco to connect to their fibers (they get to use their own amplification equipment). Don't know why this makes a difference at all.
There are also government fiber providers that I am impressed with. The one of the government of the city of Amsterdam for example gets it right. They don't regen, but if you need it you can rent racks in buildings along the fiber path and place your own equipment, and they pass through the fiber or not depending on your requirements. Unfortunately it's the city of Amsterdam. The reach is somewhat limited.
I personally think that divestiture of the physical cabling from the content provision business is the ideal solution, but I have no (0) illusions about the likelihood of that ever happening. Whether you chalk that up to regulatory capture or the growing pains of a changing business model at the end of the day really makes no matter.
This business is then generally required to provide equal access to anyone on a "cost plus" basis exactly because the cost and complexity of laying new cable is considered a massive barrier to competition, and besides we don't want a ton of companies digging up the street all the time or erecting new poles.
E.g. in the UK, the "last mile" of all landlines installed by BT are now handled by BT OpenReach. Consumers can call their preferred ISP or phone provider and ask them to take over the provision of services on the line, and the ISP deals with BT once you've authenticated the request.
The service is then either provided via backhaul over BT's network - that is, the ISP provides a few central nodes where they interface with BT, and hands over a raw data stream from each subscriber at those points - or the ISPs pay (on a cost regulated basis) to put equipment in BT's echanges. The latter has the advantage that they can offer services BT can't/won't and that ISPs that depend on backhaul from BT can't - some ISPs beat BT in certain areas this way.
It's not perfect - it's limited by BT's upgrade/buildout schedule, but BT does face competitive pressure from Virgin (cable provider), and also does face the possibility that someone will able to get finance together to lay cable to compete if they don't watch out, though the latter is less likely.
But beyond the last mile, there's fierce competition.
Most of our telecom infrastructure was built by our government, then privatized, transferring ownership to Telstra.
Telstra is required to sell equal access to its landline network (although it seems not mobile) to other ISPs and phone providers.
This isn't really any different than people ditching land lines in the late nineties and early two-thousands. It wasn't a question of cost so much as it was annoying to have multiple lines, numbers, and bills, not to mention one of those phones was only usable in a very specific way and the other could be used anywhere, whenever you felt like it.
I feel the same way about magazines. It's dumb that they are packed with ads and yet you still have to pay for them.
This is basically the same fallacy as a Google user who thinks he is Google's customer. Magazine readers are the product for the magazine main business of selling advertising space. The reason they charge money is because paying readers are considered more valuable than non-paying readers. This sort of thing is why you'll often see magazine subscriptions selling for a few bucks on Slickdeals.
We cancelled the cable and we are less annoyed. We spend an extra 15 minutes downloading what we want, and we spend less time as vegetables just passively accepting what's coming down the pipe. Less time spent watching commercials that annoy us. It's very much worth it. (Although I miss watching live sports in HD... but not enough to pay for it)
- NFL: all football games with your local team, and a lot of others. You won't be able to watch Monday Night and Thursday Night football, but if it's your local team playing, they'll have that game on a free channel.
- MLB: depends on your market, but generally there should be at least one game a week on free channels. Plus, AL/NLCS and WS are on FOX.
- NBA: less available, but there's usually two games every Sunday or every two Sundays on ABC.
- NHL: usually one game a week on NBC.
Also, there's plenty of other live sports on free channels - golf, tennis, soccer, etc. For example, Olympics are going on right now and NBC has two hours of coverage every night.
I live in a town of about 100,000 people and as far as stations that have sports, I get ABC, and sometimes NBC (The transmitter is close, but they broadcast at a power of 100W (yes W, not kW). With a roof-mounted antenna I could certainly get NBC reliably).
We used to have a Fox station here, but the ABC affiliate bought it and shut it down.
I follow NFL and MLB, my wife follows NHL.
So I get Sunday night football. The good news is that MLB is very reasonably available live and online. You can even listen to your choice of home or away announcers.
It would take a truly absurd deal (a) to tempt me through the hassle of going out and buying a TV and supporting equipment, and (b) to overcome my instinctual distaste at the thought of rearranging all my stuff to have furniture positioned for actually watching one.
On the other hand, if a cable company were to offer an Aereo-alike with assorted live television available over the web, I would probably pay for it even if it cost more than a cable bundle because it would be fundamentally more useful to me than screwing around with specialized hardware.
HDTV is basically just what monitors get called when cable and antenna demodulators are built in, especially larger than 32". They use the same HDMI plugs as many monitors, which is DVI in another shape (plus some extras).
Which isn't to say that I have anything against video entertainment. But to me it's personal entertainment, the same as reading a book or playing playing Candy Crush on a phone. So I don't really draw a huge distinction between a room full of people staring at a 40" screen on the wall and a room full of people staring at 4" screens in their hands.
The upshot being, Comcast has a serious uphill battle in wanting to convince me to spend a whole lot of money and rearrange my house all for the sake of (to my tastes) reducing the level of satisfaction I get from my family & social life. Not that there's anything wrong with having different feelings from mine about the subject. But the feelings of people who already have and like their TVs are maybe not so pertinent to the question of how to win the business of those of us who don't currently have or want one.
I can lounge as I watch, I don't have to hold my head a particular way, I can share the couch with someone else, and it also feels more natural to my eyes.
That's not to say that I would never watch a movie on a computer monitor (I have, plenty of times) but I prefer ten-foot.
My compromise is a projector on a white wall. Then my room isn't dominated by a giant TV. The A/V gear is all tucked away in a closet, and my speakers are small ones white ones that sit up close to the ceiling. I feed it from a media server.
I like this better. When I'm in a hotel room, I feel like the TV almost demands watching. It's almost menacing to me these days compared with an unobtrusive setup.
I am one of those who watches no cable TV but still pays for and deals with Comcast. It's a necessary evil in my opinion, and something I just live with.
But WiMax providers could get their act together and smash them, I'm just not sure why they haven't.
wimax/lte is not the problen
most people have experience with wired connections which provide consistent speeds with very good up time.
nowadays, mobile web use is common as well. people live with inconsistent speeds and hit/miss availability (on ALL carriers).
its a hard proposition to ask someone to compromise their consistency for small savings, or any political or philosophical reasons, and switch to wireless internet.
I think the best solution is tethering, because when you're using your phone's internet your expectations are properly set.
this will probably never happen however, as the wireless telcos are more than eager to charge you more for using your paid for connection on a different device.
In terms of Clearwire, part of what hurt them was their relationship with Sprint. Sprint wanted a 4G network without the expense of building a 4G network - Clearwire building a 4G network for them was an ideal situation. Of course, Sprint didn't want to become just another MVNO - which is what would have happened in a VoIP world. So, Sprint wanted Clearwire to succeed and create an awesome 4G network, but they didn't want Clearwire to succeed and have a successful, sustainable business that would make Sprint irrelevant.
I haven't had Clearwire service and I'm curious to hear your take on it. When Clearwire started serving my area, they offered around 5-6Mbps while my cable company offered 10Mbps. That's slower, but not hugely slower. In 2013, they were offering the same speed while my cable company offered 30Mbps. That's a big difference.
I'm a bit hopeful for Sprint's trial venture with Dish. In one market, Dish is working with Sprint to do home-broadband via fixed wireless (LTE). Dish is installing external antennas and a satellite dish on the house and the residents get TV and internet that way. The external antenna will work better than the antenna of a WiMAX hot-spot sitting in someone's living room (which is how Clearwire was operating).
I've focused a lot on Clearwire because Clearwire has most of the spectrum that would have gone to WiMAX. And herein lies another problem: Clearwire was the WiMAX provider. Just as one can get angry at Comcast, one can get annoyed that Clearwire wasn't better at running a business and rolling out coverage. In terms of EBS and BRS spectrum (~2.5GHz), Clearwire averages about 80% of that spectrum in the top 100 markets. While Clearwire by itself could have made a bigger impact, it didn't. It would be like having another cable company that no one used - it wouldn't have an impact.
Ultimately, I think one of the issues that doesn't get talked about enough is the revenue. For example, your cable company runs wires all over town - that's the expensive part. If they provide you with just internet or internet plus television, their costs aren't dramatically altered, but their revenues double. Clearwire didn't have such a revenue-doubler and that extra revenue could have fuelled investment. In some ways, Clearwire had a revenue-shrinker in that Sprint was having customers pay it $40/mo for a data plan and was giving Clearwire about $3-6/mo. While that's revenue, such a low amount might have been below the average cost to serve customers and the deal cut Clearwire out of getting retail mobile customers paying it real money. But this is why I'm hopeful about the Dish/Sprint trial. First, fixed wireless with an installed, external antenna is going to be significantly better. Second, there's the possibility of a quadrouple-play: TV with video-on-demand, home phone service, mobile phone service, and internet. That would provide a good revenue stream that would provide the incentive for investment. Even if you didn't want TV or home phone service, a double play of mobile phone and home internet service would be more revenue than just one service.
I'm curious what your thoughts are. I think wireless has the potential to be impactful, but I think it's going to take a while. Verizon, AT&T, and T-Mobile aren't finished dealing with their mobile customers and don't have the spectrum to do home broadband before their mobile solutions are complete (once that is complete, there is the possibility to install smaller cells to re-use spectrum on a more granular level). Sprint now has Clearwire's spectrum, but isn't the fastest moving company. Is there another player I should be aware of?
You'd think that, normally, an ISP would try to upgrade the bandwidth for their users to stay ahead of the higher bandwidth requirements. In Europe, I've just upgraded to 100 Mbps about 3 years ago, and now I could upgrade to 1 Gbps for a little more. The only reason I'm not doing it yet is because my laptop (HDD) and router (802.11n) haven't quite caught up with this speed yet, and a lot of it would be wasted if I got it now.
"Thank you for calling us, Higher Purpose. Your Internet is slow, Mr. Purpose? We can certainly fix that. I see that you are currently paying us $39.95/month for 10mbps service. How about we make that $89.95/month for 20mbps service? Besides, who will you switch to if you don't like the price?"
I prefer to spend my money on a faster internet connection and stream the shows or sports I want to watch thanks to options like Netflix and NHL Gamecenter. I no longer need Cable TV to buy the NHL package for example; nor do I need Cable TV to watch Breaking Bad or Game of Thrones.
The author of this article is confused; it's not literally about cutting your cord with your ISP, it's about saying no to expensive programming we simply don't want anymore.
You weren't just asserting a preference, you were putting down that which you don't like repeatedly. Whether one chooses to spend their time crocheting or watching TV is a strictly subjective value judgement. Is it better to laugh at a Seinfeld re-run, or Louis CK live? Better to watch Game of Thrones or read the books? Purely subjective, there is no superior choice.
Are you trying to be smug? I have no idea if that's your character type, my point was that what you said comes across as smug. It sounds culturally elitist, as though TV is for the little stupid people (I know you didn't say those words).
I think it can be argued that one is a more intellectually stimulating option, while also being entertaining. The fact that people prefer the more easily digested option might be partially due to the effect of advertising and what makes the wheels of capitalism spin.
This article was about people finding alternatives, not about those who reject the medium altogether.
The cable box will remain off and unplugged as we never used it but they're obviously just trying to keep their numbers up for some reason I can't comprehend.
You could have cancelled tv service and asked for a promo discount on your internet service. Calling with specific knowledge of a competitor's plan and threatening to switch to it gets you the best deals.
With just internet, there are usually NO taxes+fees, not even state sales tax. So even if cable+internet cost the same as just internet, you will still end up shelling out $10 more. The $50 cable+internet option will cost $60, whereas the $40 internet option costs just that.
Eventually they'll learn that story-telling isn't meant to be interrupted by advertisements. The content is gravely diminished when this happens. I find myself not caring about plot after so many commercial breaks. Made worse by the terrible, "coming up next on blah blah blah" hook.
I can see some sports fanatics enjoying the 'luxuries' of basic cable, as I don't believe there are any fool proof options online yet - I also don't care.
Of course we all have our fingers crossed that this eureka moment comes before the bumbling kids that make up their leadership team have lobbied or filtered and "traffic shaped" the internet to death.
So yeah, I'll save the $10/mo on basic cable and pay Netflix $8/mo just because it's that much less for the cable company, plus no ads!
In Tucson that was my experience, and it was frustrating. So frustrating that I sent letters to the president of Qwest Arizona. To Qwest's credit, his assistant did respond to my queries, and we kept trading e-mails about whether Qwest would roll out real services to my area. In the time I lived there, however, Qwest never did, and Comcast had a de-facto monopoly.
Now I'm living in New York and have a couple potential providers, including Time Warner and RCN. I use the latter.
And that doesn't include the cell providers, which are just about out of ways other than price to differentiate themselves.
And on top of this, of course my ObiTalk will cease to function in a few weeks when Google pulls the plug on the interface it used to make the free calling possible.
Obi also just announced Anveo as their preferred provider to replace Google Voice.
I really don't understand what Google's plan for GV is. I wish they'd just charge for it already.
My main reason for cutting the cord is to save money, and it has saved me quite a deal of money over 3 years.
I now have a Roku 3 and am fortunate to live in a location where Aereo provides service. Unfortunately, the stream quality of Aereo is no where as good as Netflix. I can only hope this changes in the future. Also, my kids are now at the age where they are outgrowing Disney.
I now pay about $16/month for TV. I feel like this is a major paradigm shift: Instead of paying for TV in dollars per day, I am now paying for TV in days per dollar.
That is truly miniscule for a 25Mbps connection.
I'm on a 5Mbps connection and our household averages 300GB downloaded per month. Mostly to feed my GF's TV addiction, but still.
I'm at $75 / month for 15 mbps, with a cable company called Shentel (50mbps is $140 with them).
I see other people complain about paying $70x for 25 or 50 mbps. I'd love to have that value proposition.
I don't recall the name, but it seems plausible that a bill consolidation service could do something similar at a similar layer of the payment processing infrastructure, collect their percentage, and be profitable doing it.
Anyways, I don't think I've ever received a "bill" from any of them. My CC gets charged and that's that. As far as that goes, a central service already exists: Amazon Payments, PayPal, etc.
They'll try and manage to fuck customers no matter what as long as they maintain the power.