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Tag: Time Warner Cable

  • Charter Ends Petition to Get Government Approval For Data Caps

    Charter Ends Petition to Get Government Approval For Data Caps

    Charter is ending its petition to get government approval for imposing broadband data limits on customers.

    Charter is somewhat unique in that it must get government approval before imposing data limits. While other internet service providers (ISPs) are free to do what the market will bear, Charter’s restrictions were imposed as terms of its purchase of Time Warner Cable.

    The company submitted its request in June 2020. The following month, Federal Communications Commission (FCC) Chairman Ajit Pai requested public comment on Charter’s request. Since then, no forward progress has been made.

    In a very brief filing, Charter has withdrawn its request.

    Charter Communications, Inc. respectfully withdraws its petition in the above-referenced proceeding.

    While no reason was given, a likely motivation is the incoming Biden/Harris administration and, with it, a Democratic-controlled FCC. As a result, it’s likely Charter would have faced significant pushback in any efforts to impose data caps, especially during a pandemic when internet connectivity is more important than ever.

  • Time Warner Cable’s New Ad Strategy: Poke Fun at Crappy Customer Service

    A few years ago, Domino’s Pizza started talking about how much Domino’s Pizza sucked. That sort of ad campaign – the we know we suck but now it’s going to be better campaign – isn’t new, but now it’s being utilized by a company that ranks near the bottom of pretty much every customer satisfaction survey out there.

    Time Warner Cable is now taking the we know we suck approach, and is promising to offer better customer service.

    The company has put out a few new ads that poke fun at wait times – both for scheduled maintenance visits and for customer service calls.

    It’s not as if the customer service improvements TWC’s offering are revolutionary, but they are a welcome change. What is interesting is that the company is adopting this “apology tour” ad campaign as more and more people cut the cord.

    “We get it. We know how you feel about cable companies. We’ve seen where Time Warner Cable
    falls on customer satisfaction surveys and we know the ‘cable guy’ jokes by heart,” says Time Warner Cable. “We hear you loud and clear. We also know that your video, phone and Internet services are critical to your daily lives and deserve our highest investment and very best effort. So we’ve made some changes to get better. Changes that we hope add up to more respect for your time, more value for your money and the kind of experience you expect from a leading entertainment and technology company.”

    According to The Verge, this ad ran i newspapers across the country this past weekend.

    Comcast, the other company that routinely finds itself at the bottom of aforementioned satisfaction surveys, also recently admitted it needs to improve its customer service.

  • Time Warner Cable Owes Woman $229,500 for Nonstop Robocalls

    Depending on which survey you look at, Time Warner Cable is either the most-despised or second most-despised company in America. It’s tough to pinpoint why this is. Honestly. I have no idea.

    But I think I’ve figured it out. Robocalls!

    A Texas woman will receive a pretty sizable chunk of change after a court ruled that Time Warner Cable violated the Telephone Consumer Protection Act of 1991 with each of their unwanted robocalls administered over an 11-month period.

    153 calls, to be exact.

    Araceli King of Irving, Texas found herself the owner of a phone number previously held by one Luis Perez, with whom Time Warner Cable had some beef. According to King, Time Warner continued to harass her with the unwanted calls and messages even after she explained the situation.

    “A responsible business in TWC’s position might have dispatched a live agent to reach out to Luiz Perez after the IVR (interactive voice response) failed to reach him the first several times,” Judge Alvin Hellerstein wrote. “The responsible company will reduce its exposure dramatically by taking proactive steps to mitigate damages, while its competitor, who unthinkingly robo-dials the same person hundreds of times over many months without pausing to wonder why it cannot reach him, cannot complain about much higher liability.”

    In fact, the court found that 74 of the 153 robocalls came after King sued Time Warner Cable.

    It was because of this sort of egregious behavior that the judge pretty much threw the book at Time Warner. He awarded King $1,500 per call – triple the penalty. That’s a total of $229,500.

    Time Warner says it is “reviewing its options and determining how to proceed.”

    If Time Warner Cable wants to call me 153 times next year, that’s ok with me.

  • Now Charter Communications Is Going To Buy Time Warner Cable

    Now that Comcast’s acquisition of Time Warner Cable has fallen apart, Charter Communications has swooped in to attempt an acquisition of TWC.

    In February, Comcast announced its intent to acquire the other cable giant, but that deal officially died in April as Comcast abandoned its efforts following reports that the Department of Justice and Federal Communications Commission were to recommend against the deal. It ended up costing Comcast roughly $336 million to not acquire Time Warner Cable.

    As soon as that deal fell apart, reports were already pouring out, indicating that Charter Communications was ready to move on TWC. That became official on Tuesday as the two companies co-announced Charter’s intent to merge with TWC and acquire Bright House Networks. The deal values Time Warner Cable at $78.7 billion with Charter providing $100 in cash and shares of a new public parent company (New Charter) equivalent to 0.5409 shares of CHTR for each Time Warner Cable share outstanding. This values TWC shares at about $195.71 based on Charter’s market closing price on May 20.

    Charter will acquire Bright House Networks for $10.4 billion as part of an amended agreement, which was originally announced in March. New Charter will own between 86% and 87% of Bright House while parent Advance/Newhouse will own between 13% and 14%.

    The combination of Charter, Time Warner Cable and Bright House will serve 23.9 million customers in 41 states.

    “The teams at Charter, Time Warner Cable and Bright House Networks are filled with the innovators of our industry. Representatives of each of these companies have invented some of the most revolutionary communications products ever created; innovations like video on demand, VOIP phone service, remote storage DVR, cable TV through an app, downloadable security and the first backward-compatible, cloud-based user interface. That spirit of innovation will live on, and it will create real benefits and great long-term value for the customers, shareholders and employees of all three companies,” said Charter Communications CEO Tom Rutledge. “With our larger reach, we will be able to accelerate the deployment of faster Internet speeds, state-of-the-art video experiences, and fully–featured voice products, at highly competitive prices. In addition, we will drive greater competition through further deployment of new competitive facilities-based WiFi networks in public places, and the expansion of the facilities footprint of optical networks to serve the large, small and medium sized business services marketplace. New Charter will capitalize on technology to create and maintain a more effective and efficient service model. Put simply, the scale of New Charter, along with the combined talents we can bring to bear, position us to deliver a communications future that will unleash the full power of the two-way, interactive cable network.”

    “With today’s announcement, we have delivered on our commitment to maximizing shareholder value,” said Time Warner Cable CEO Robert D. Marcus. “This agreement recognizes the unique value of Time Warner Cable, and brings together three great companies that share a common philosophy of strong operations, great products, robust network investment and putting customers first. This combination will only accelerate the great operating momentum we’ve seen over the last year and provide enormous opportunities for our 55,000 dedicated employees. We remain wholly committed to bringing the very best experience to our residential and business customers coast to coast.”

    “Today’s announcement is good news for customers and potential customers, as well as our employees, since we will be in a stronger position to deliver competitive services, invest in advanced technology, and develop innovative products that will compete with global and national brands,” said Bright House CEO Steve Miron. “In addition, I am very pleased that Tom Rutledge will be the CEO of the new company. Tom recognizes the importance of placing a high priority focus on customer care drawing from the expertise of all three companies, and I believe this will be a strong pillar of the new company’s culture.”

    Tom Rutledge will serve as President and CEO of New Charter with the offer of a new five-year employment agreement. He will also be offered the position of Chairman of the Board, which will consist of 13 directors. The other 12 will consist of

    7 independent directors nominated by the independent directors serving on Charter’s Board of Directors, 2 designated by Advance/Newhouse, and 3 designated by Liberty Broadband. Charter’s current Chairman Eric Zinterhofer, will continue to serve on New Charter’s Board.

    Image via Consumerist, Flickr Creative Commons

  • Comcast’s Final Tally on Failed Time Warner Cable Deal: $336 Million

    Comcast spent $336 million to not acquire Time Warner Cable.

    In the company’s Q1 earnings report, it reported $99 in “transaction” costs. If you add that to all the other transaction costs Comcast reported in 2014 it looks something like this:

    “The costs are mainly for legal fees and outside consulting firms—everything from Human Resources and IT consulting to banks and management consulting services,” Comcast VP of Government Communications Sena Fitzmaurice told Ars Technica. “Communications and lobbying fees would be included—however, what is included has to be direct and incremental—so only those fees that are directly and incrementally associated with the deal.”

    The deal, which was first announced in February of 2014, officially died on April 24, 2015. Comcast announced it had abandoned its efforts to acquire Time Warner Cable, following reports that said the Department of Justice and Federal Communications Commission were both gearing up to recommend against the deal.

    If the merger had been approved, the Comcast-TWC behemoth would’ve controlled 57% of the US broadband market and 30% of the cable market.

    Just as he said in the announcement of the deal’s failure, Comcast CEO Brian Roberts said that they’re “moving on” in the earnings call.

    So, how much money is $336 million? A lot. How much is it to Comcast? Well, here’s a little perspective:

    Image via Steven Depolo, Flickr Creative Commons

  • Time Warner Cable Already Has Another Suitor

    The dead Comcast/Time Warner Cable deal is still warm, but Time Warner Cable already has a potential buyer who isn’t wasting any time in going after the major telecommunications player.

    And it’s a familiar face.

    According to the Wall Street Journal, Charter Communications is ready to move on TWC. From the WSJ, quoting sources:

    Charter, which is backed by John Malone’s Liberty Broadband, could approach Time Warner Cable with a proposal soon, the people said. People close to Charter acknowledged that they will have to come up with a better offer than what they presented to Time Warner Cable more than a year ago, given that Time Warner Cable’s operations have improved and both companies’ stock prices have climbed. Charter is unlikely to make a hostile bid, one of the people said.

    Before the Comcast deal materialized, Charter made multiple attempts to buy Time Warner, offering the company $37.4 billion in January of 2014. Comcast, of course, won the bidding war with a larger bid ($45 million). Charter fought it for a while, but eventually dropped its pursuit in April. Comcast and Charter made a subsequent subscriber deal.

    On Friday, Comcast abandoned its push to acquire Time Warner Cable, due to looming concerns that both the Department of Justice’s antitrust division and the Federal Communications Commission were poised to recommend it blocked.

    “We have always believed that Time Warner Cable is a one-of-a-kind asset. We are strong and getting stronger. Throughout this process, we’ve been laser focused on executing our operating plan and investing in our plant, products and people to deliver great experiences to our customers. Through our strong operational execution and smart capital allocation, we are confident we will continue to create significant value for shareholders. I’m extremely proud of the professionalism, dedication and resiliency our 55,000 employees have shown over the past year and thank them for their continued commitment to Time Warner Cable,” said Time Warner Cable CEO Robert Marcus.

    Both the Department of Justice and the FCC made statements following Comcast’s decision that cited streaming services and online media as big reasons for their opposition.

    Last month Charter agreed to buy Bright House Networks for $10.4 billion – but that deal was contingent upon the success of the Comcast / Time Warner Cable deal.

    Image via Jonathunder, Wikimedia Commons

  • Netflix Was a Big Part of Why Regulators Hated Comcast/TWC Merger

    Netflix Was a Big Part of Why Regulators Hated Comcast/TWC Merger

    By now you’ve probably heard that Comcast has abandoned its push to acquire Time Warner Cable, due to looming concerns that both the Department of Justice’s antitrust division and the Federal Communications Commission were poised to recommend it blocked.

    “Today, we move on. Of course, we would have liked to bring our great products to new cities, but we structured this deal so that if the government didn’t agree, we could walk away,” said Comcast CEO Brian Roberts.

    Now, both the DoJ and the FCC have issued official statements on the death of the merger, and they both sign a similar tune. A main concern for both the DoJ and the FCC, apparently, was Netflix (& other streaming services, of course) and Net Neutrality.

    Take a look at FCC Chairman Tom Wheeler’s statement (bolding ours):

    Comcast and Time Warner Cable’s decision to end Comcast’s proposed acquisition of Time Warner Cable is in the best interests of consumers. The proposed transaction would have created a company with the most broadband and video subscribers in the nation alongside the ownership of significant programming interests. Today, an online video market is emerging that offers new business models and greater consumer choice. The proposed merger would have posed an unacceptable risk to competition and innovation especially given the growing importance of high-speed broadband to online video and innovative new services. I am proud of our close working relationship throughout the review process with the Antitrust Division of the Department of Justice. Our collaboration provided both agencies with a deeper understanding of the important issues of innovation and competition that the proposed transaction raised.

    And here’s what Attorney General Eric Holder had to say:

    The companies’ decision to abandon this deal is the best outcome for American consumers. The Antitrust Division of the United States Department of Justice has demonstrated, time and again, that it can and will defend the interests of the American consumer no matter the complexity of the issue or the size of the opponent. This is a victory not only for the Department of Justice, but also for providers of content and streaming services who work to bring innovative products to consumers across America and around the world. I commend the Antitrust attorneys and investigators whose outstanding work led to this outcome, and I know that the Department of Justice will continue to fight for fair access and free competition in every industry and every market.

    According to the Wall Street Journal, Holder had already authorized the DoJ antitrust officials to file a lawsuit against the deal.

    Netflix was vehemently against the merger from the beginning, as the streaming company was forced to pay Comcast a fee for access.

    Netflix said that the merger would’ve “set up and ecosystem that calls into questions what we to date have taken for granted: that a consumer who pays for connectivity to the internet will be able to get the content she requests.”

    It appears the feds agreed.

  • Comcast / Time Warner Cable Merger Is Dead, Officially

    Comcast / Time Warner Cable Merger Is Dead, Officially

    It’s official. Comcast has announced it has abandoned its efforts to acquire Time Warner Cable, in a deal that would’ve been valued at around $45 billion. This follows reports on Thursday that said the Department of Justice and Federal Communications Commission were both gearing up to recommend against the deal.

    If the merger had been approved, the Comcast-TWC behemoth would’ve controlled 57% of the US broadband market and 30% of the cable market.

    “Today, we move on. Of course, we would have liked to bring our great products to new cities, but we structured this deal so that if the government didn’t agree, we could walk away. Comcast NBCUniversal is a unique company with strong momentum. Throughout this entire process, our employees have kept their eye on the ball and we have had fantastic operating results. I want to thank them and the employees of Time Warner Cable for their tireless efforts. I couldn’t be more proud of this company and I am truly excited for what’s next,” said Comcast CEO Brian Roberts in a statement.

    Time Warner Cable CEO Robert Marcus also weighed in on the decision, saying,

    “We have always believed that Time Warner Cable is a one-of-a-kind asset. We are strong and getting stronger. Throughout this process, we’ve been laser focused on executing our operating plan and investing in our plant, products and people to deliver great experiences to our customers. Through our strong operational execution and smart capital allocation, we are confident we will continue to create significant value for shareholders. I’m extremely proud of the professionalism, dedication and resiliency our 55,000 employees have shown over the past year and thank them for their continued commitment to Time Warner Cable.”

    Comcast’s line for over a year had been that the acquisition is “pro-consumer, pro-competitive, strongly in the public interest, and approvable” – but in the end the regulatory bodies in charge of reviewing the merger did not agree.

    The deal was unpopular from the start, as consumer advocates argued that the company would be anti-competitive and bad for customers.

    “Should the transaction survive the FCC’s and DOJ’s reviews, we believe that Comcast-TWC’s unmatched power in the telecommunications industry would lead to higher prices, fewer choices, and poorer quality services for Americans – inhibiting US consumers’ ability to fully benefit from modern technologies and American businesses’ capacity to innovate and compete on a global scale,” wrote Senators Al Franken, Bernie Sanders, Edward Markey, Ron Wyden, Elizabeth Warren, and Richard Blumenthal in a recent letter to the DoJ and FCC.

    This final decision comes on the heels of reports that the FCC had proposed a “hearing designation order” for the merger review – a move that signaled the deal was fast approaching dead.

    “In effect, that would put the $45.2 billion merger in the hands of an administrative law judge, and would be seen as a strong sign the FCC doesn’t believe the deal is in the public interest,” wrote the Wall Street Journal.

    The FCC wasn’t the only regulatory agency with doubts about the merger. Antitrust officials at the Department of Justice were reportedly ready to recommend killing the merger, citing concerns that the two companies would create an entity that would ultimately be too large and harm consumers.

    Here’s a final way to look at it – with this, the two most-hated companies in America will not be joining forces.

    So, who’s going to try to buy Time Warner Cable now?

    Image via Steven Depolo, Flickr Creative Commons

  • Comcast Is Giving Up on Its TWC Deal: Report

    Comcast Is Giving Up on Its TWC Deal: Report

    Comcast is planning to kill its proposed acquisition of Time Warner Cable before the feds can kill it first.

    Bloomberg is quoting sources who say that Comcast is ready to back away from the merger, which would be valued at around $45 billion.

    This comes on the heels of reports that the FCC had proposed a “hearing designation order” for the merger review – a move that signaled the deal was fast approaching dead.

    “In effect, that would put the $45.2 billion merger in the hands of an administrative law judge, and would be seen as a strong sign the FCC doesn’t believe the deal is in the public interest,” wrote the Wall Street Journal.

    The FCC isn’t the only regulatory agency with doubts about the merger. Antitrust officials at the Department of Justice were reportedly ready to recommend killing the merger, citing concerns that the two companies would create an entity that would ultimately be too large and harm consumers.

    Comcast met with reps from both the DoJ and the FCC to try to iron out a deal – compromises to make the merger happen – but it appears those talks went nowhere.

    But as Bloomberg points out, the FCC pill was much tougher to swallow than the one from the Justice Department, however bitter it may have been:

    While the DOJ has to present a case in court to block the deal, an FCC hearing referral could prove to be the bigger obstacle to Comcast’s bid to expand its cable and Internet footprint. The last time the FCC staff proposed sending a merger to a hearing was over AT&T Inc.’s bid to buy T-Mobile USA Inc. in 2011, prompting the companies to drop the deal. The Justice Department had already brought a lawsuit seeking to block the merger.

    Comcast’s line for over a year has been that the acquisition is “pro-consumer, pro-competitive, strongly in the public interest, and approvable.” We’ll see if Comcast is soon signing a different tune. A final decision on whether to abandon the deal could come as early as Friday.

    Image via Steven Depolo, Flickr Creative Commons

  • Elizabeth Warren, Al Franken Among Six Senators Urging a Swift Death for the Comcast/Time Warner Merger

    Elizabeth Warren, Al Franken Among Six Senators Urging a Swift Death for the Comcast/Time Warner Merger

    In a letter addressed to Federal Communications Commission Chairman Tom Wheeler and Attorney General Eric Holder, six Senators are urging the blockage of Comcast’s proposed merger with Time Warner Cable. The letter comes just one day before representatives from Comcast and Time Warner Cable are set to meet with DoJ antitrust officials in the hopes of saving a deal that appears to be on shaky ground.

    “Should the transaction survive the FCC’s and DOJ’s reviews, we believe that Comcast-TWC’s unmatched power in the telecommunications industry would lead to higher prices, fewer choices, and poorer quality services for Americans – inhibiting US consumers’ ability to fully benefit from modern technologies and American businesses’ capacity to innovate and compete on a global scale,” write Senators Al Franken, Bernie Sanders, Edward Markey, Ron Wyden, Elizabeth Warren, and Richard Blumenthal.

    “Since the proposal was announced last year, we have heard from consumers across the nation, as well as from advocacy groups, trade associations, and companies of all sizes, all of whom fear that the deal would harm competition across several different markets and would not serve the public interest,” says the letter.

    “We’ve also heard from constituents in our home states who are rightfully frustrated about their increasingly high cable and Internet bills and are concerned that the proposed acquisition will only drive those prices higher. Unfortunately, with only a handful of cable and Internet providers dominating the market, consumers are often left with little choice but to pay the price a given provider demands and have little say over what content is made available to them.”

    If the merger were to go through, the Comcast-TWC behemoth would control 57% of the US broadband market and 30% of the cable market.

    But it’s far from a sure thing. In fact, recent reports have indicated that the Department of Justice is poised to recommend blocking the deal. Upon hearing that news, Comcast and Time Warner Cable rushed into action and are set to meet face-to-face with regulators for the first time since they proposed the deal. It is expected that Comcast will attempt to make concessions to satisfy regulators, some of whom are as wary as the Senators.

    Comcast’s official line has always been that the deal is not anti-competitive.

    “Comcast’s merger with Time Warner Cable will ensure that a responsible and committed steward delivers advanced video and high-speed data services and innovation to these customers. The proposed transaction is pro-consumer, pro-competitive, strongly in the public interest, and approvable,” says the company.

    “We urge you to defend American competition and innovation and ensure the Americans have affordable access to high-quality telecommunications services. We hope you’ll take a stand for US consumers and businesses and reject Comcast’s proposed acquisition of TWC,” say the Senators.

    Image via Wikimedia Commons, h/t Ars Technica

  • Comcast, TWC Will Meet with Regulators to Try to Save Deal

    Comcast, TWC Will Meet with Regulators to Try to Save Deal

    With their proposed merger on shaky ground, representatives from Comcast and Time Warner Cable are planning to meet with Justice Department officials in the hopes of negotiating a pathway for the deal to proceed.

    This will be the first such meeting between the cable companies and regulators since the merger was announced.

    The Wall Street Journal Reports that Comcast will likely offer concessions to assuage wary antitrust officials at the DoJ. From the WSJ:

    The Wednesday meeting with antitrust officials could be the first of many, but it isn’t clear whether the companies can offer concessions that will satisfy regulators.

    Looming over any discussion about merger remedies will be the concessions Comcast made in 2011 to win approval to acquire control of NBCUniversal. People familiar with the current review process say the Justice Department and the FCC have been examining whether Comcast has fully complied with those earlier commitments.

    Last week, Bloomberg reported that antitrust officials at the Department of Justice were ready to recommend killing the merger, citing concerns that the two companies would create an entity that would ultimately be too large and harm consumers. The Federal Communications Commission is also looking into the merger, and has plenty of concerns of its own, according to reports.

    Comcast’s official line is that the deal is not anti-competitive.

    “Comcast’s merger with Time Warner Cable will ensure that a responsible and committed steward delivers advanced video and high-speed data services and innovation to these customers. The proposed transaction is pro-consumer, pro-competitive, strongly in the public interest, and approvable,” says the company.

    Image via Steven Depolo, Flickr Creative Commons

  • Regulators Ready to Kill Comcast / TWC Merger: Report

    Regulators Ready to Kill Comcast / TWC Merger: Report

    One of the regulatory agencies looking over the proposed Comcast / Time Warner Cable merger may be about to give it the thumbs down, citing concerns over potential harm to customers.

    Bloomberg cites the ubiquitous “people familiar with the matter” in saying that antitrust lawyers at the Department of Justice are poised to recommend against the merger.

    From Bloomberg:

    Attorneys who are investigating Comcast’s $45.2 billion proposal to create a nationwide cable giant are leaning against the merger out of concerns that consumers would be harmed and could submit their review as soon as next week, said the people.

    The antitrust lawyers will present their findings to Renata Hesse, a deputy assistant attorney general for antitrust, who will decide, along with the division’s top officials, whether to file a federal lawsuit to block the deal, they said.

    The Justice Department lawyers have been contacting outside parties in the last few weeks to shore up evidence to support a potential case against the merger, one of the people said.

    The other agency reviewing the deal, the Federal Communications Commission, is not sold either, according to reports. The deal, which looked like a sure thing a year ago, is in serious danger of falling apart. Some have already proclaimed it dead.

    Bloomberg has news on that front, too, saying “officials at the antitrust division and the Federal Communications Commission, which is also reviewing the deal, aren’t negotiating with Comcast about conditions to the merger that would resolve concerns.”

    Comcast’s official line on the merger is that it is pro-consumer and pro-competition.

    Comcast’s merger with Time Warner Cable will ensure that a responsible and committed steward delivers advanced video and high-speed data services and innovation to these customers. The proposed transaction is pro-consumer, pro-competitive, strongly in the public interest, and approvable. It will deliver better services and technology to Time Warner Cable’s subscribers and result in no reduction of choice for consumers. Following the acquisition and possible divestiture of some subscribers, Comcast subscribers will represent essentially the same share of nationwide MVPD subscribers as Comcast’s shares following the Adelphia and AT&T Broadband transactions in a much more competitive and dynamic marketplace. This transaction will create a world-class technology and media company, differentiated by its ability to deliver ground-breaking products on a superior network while leveraging a national platform to create operating efficiencies and economies of scale.

    Last month, the fourth-largest cable provider agreed to acquire the sixth-largest as Charter Commutations offered $10,4 billion for Bright House Networks. If the Comcast / Time Warner Cable deal were to go through, the #1 and #2 providers in the US would combine to form a behemoth. The two remain the most despised companies in America.

    Image via Steven Depolo, Flickr Creative Commons

  • Charter to Buy Bright House for $10.4B, As Fourth-Largest Cable Provider Snatches Up Sixth

    Good Tuesday, everyone. Here’s some news you’re sure to love, if cable companies consolidating is your thing.

    Charter Communications has agreed to acquire Bright House Networks for $10.4 billion. This means the US’ fourth-largest cable provider is buying the sixth-largest. According to a release, Bright House serves about two million video customers in central Florida, as well as in Alabama, Indiana, Michigan, and California. Charter is in nearly 30 states, serving nearly six million.

    There are a few hoops the companies must jump through before this deal goes final, however …

    The business will be conducted through a partnership (the “Partnership”) of which Charter will own 73.7%, and of which Advance/Newhouse will own 26.3%. The consideration to be paid to Advance/Newhouse by New Charter will include common and convertible preferred units in the Partnership, in addition to $2 billion in cash. The partnership units owned by Advance/Newhouse will be exchangeable for common shares of New Charter. The deal is subject to several conditions, including Charter shareholder approval, the expiration of Time Warner Cable’s right of first offer for Bright House, the close of Charter’s previously-announced transactions with Comcast and regulatory approval.

    But it’s fair to assume that the regulatory approval process will not be a stringent as the one facing Comcast and Time Warner Cable right now.

    “Bright House Networks provides Charter with important operating, financial and tax benefits, as well as strategic flexibility. Bright House has built outstanding cable systems in attractive markets that are either complete, or contiguous with the New Charter footprint. This acquisition enhances our scale, and solidifies New Charter as the second largest cable operator in the US. I look forward to working with the Bright House team, whom we have known for years, in delivering great products and services to grow our market share,” said Charter CEO Tom Rutledge.

    And with that, the cable industry grows tighter. Lovely.

    Image via Jonathunder, Wikimedia Commons

  • Hey Time Warner Cable, You Can Call Me Whatever You Like

    I have Time Warner Cable and high-speed (lol) internet. If anyone from the billing department is listening, I just wanted to let you know that if you happen to get upset with me and call me names – let’s say on my bill or something – well, I’m cool with that as long as it means I get free stuff.

    Oops, I mean, grrrrr … I’d be so angry!

    I heard you – or a third party vendor that works worked for you – recently referred to a customer as “Cunt Martinez” in a letter. Then, I heard you apologized for the error profusely and offered her a free year of cable and internet.

    I also heard that Comcast called someone “Asshole Brown” on a bill. Boy, what a fiasco! I saw they apologized to her and refunded two whole years of her cable bills! Did you know about that? I bet you did. You guys are like, super close now.

    So, here’s what’s going to happen.

    I’m going to call you tonight and start bitching about something. Maybe multiple things. It doesn’t really matter. My internet is slow. I think you’re throttling me. ESPN2 is barely watchable it’s so choppy. What gives? Since when did my bill go up by $9? What kind of bullshit is this?

    I’m going to be insufferable. Not rude – just persistent enough to really annoy someone. I doubt it’ll be a struggle.

    And then in a few weeks, when I receive my billing statement, I’m going to hope to God almighty that some pissed-off customer service rep has changed my name to “F*ckface Wolford” or “Josh Fart”.

    Because in all honesty, you can call me whatever you like. I don’t care. There is literally no combination of vowels and consonants that is so offensive that I wouldn’t bear it to receive free internet and cable for a year.

    So, let’s save us both the hassle. I’ll just take a free year right now. Basic services are fine – I’ll pay for the premiums. And as far as internet goes, I’ll take the middle-of-the-road speed.

    I mean, it’s all the same anyway.

  • ‘Dear C*nt Martinez’ Writes Time Warner Cable in Letter to Customer

    If cable companies weren’t so cartoonishly evil, they’d be really, really funny.

    Time Warner Cable, in an obvious attempt to show the FCC that they truly belong with Comcast, has gotten in on the name-calling fun.

    This is a letter to Esperanza Martinez. It appears Time Warner Cable has spelled her name incorrectly.

    “Dear Cunt Martinez,” it reads. It’s also addressed to one Cunt Martinez.

    According to Ars Technica, Martinez reached out to the publication with the letter. She says she never tried to disconnect her service, instead only reported an issue with her cable box.

    Of course that’s not the point.

    Time Warner has responded, admitting the error but blaming it on a third-party vendor (who’s since been fired).

    “We are truly sorry for the disgraceful treatment of Ms. Martinez and have reached out to her to apologize directly. Our investigation showed that this was done by an employee at a third-party vendor. We have terminated our agreement with this vendor and are changing our processes to prevent this from happening again,” said a TWC spokesperson.

    Comcast has been in the news recently for a series of similar screwups, like that time they called a customer “Asshole Brown” or that time they called a customer a “Super Bitch”. One can see why the two companies are attracted to each other.

    Why the hate, America?

    Image via Consumerist, Flickr Creative Commons

  • Comcast, Time Warner Cable Still the Most-Despised Companies in America

    As we prepare to transition from 2014 to 2015, Comcast and Time Warner Cable – two companies attempting to merge – are still the best at being the worst.

    The American Consumer Satisfaction Index, a huge (80,000 or so) annual survey that asks Americans about their satisfaction with certain companies and areas of the national economy, has again shown how much people dislike these two major players.

    MarketWatch has the new ratings from the December report, which surveyed people in regard to 230 brands. Time Warner Cable’s internet service scored a 54 out of 100 – the lowest of all companies. The next lowest? Time Warner Cable’s tv service with a 56.

    Coming in third-to-last was Comcast ISP, with a 57.

    These numbers mimic those seen earlier this year – the last time the ACSI issued a report. This is becoming a trend.

    It’s been a bad year PR wise – especially for Comcast. You can see exhibits A, B, C. Regulators are still weighing the proposed merger.

    Image via Consumerist, Flickr Creative Commons

  • Americans Still Hate Cable Companies More Than Everything

    YouGov recently asked 9,000 people a simple question about 1,200 different brands in 43 different sectors – Are you a satisfied customer? They then used the responses to rank each industry in terms of average satisfaction score.

    Guess which industry came in dead last?

    If you said the erectile dysfunction industry, well, you need to get a better boner pill. Also, you’d be wrong. The ED industry’s total satisfaction score was 28.4 – good for 5th worst.

    Still, its score more than doubled that of America’s most hated industry – cable and satellite TV. With a cool 13.2, cable customers are the least satisfied group of consumers out there.

    I wonder why.

    Here’s the full chart, if you want to look at all the things people hate less than cable companies.

    This should come as no surprise, as companies like Comcast and Time Warner have repeatedly been voted the most hated for years.

    Here’s a silver lining – there will soon be fewer of them to deal with!

    h/t The Daily Dot, Image via Wikimedia Commons

  • Comcast/Time Warner Cable Merger Gets Thumbs Up from Shareholders

    The shareholders of two of the most-hated companies in America have approved their merger.

    According to Bloomberg, “more than 99 percent of shares were voted in favor of the deal” to sell Time Warner Cable to Comcast. On Thursday Comcast’s shareholders, by the same nearly 100 percent margin, approved the deal.

    That means all that’s left in the way of the merger is regulatory approval. The deal is currently facing scrutiny from the Federal Communications Commission, as well as various state regulatory agencies.

    Though Comcast and Time Warner argue that the deal would not be anti-competitive, some high profile companies and organizations have come forward to publicly oppose the sale.

    Netflix is one, which just recently filed an official petition with the FCC.

    “The proposed merger puts at risk the end-to-end principle that has characterized the internet and been a key driver in the creation of the most important communications platform in history. Unsurprisingly, given their dominance in the cable television marketplace, the proposed merger would give Applicants the ability to turn a consumer’s internet experience into something that more closely resembles cable television. It would set up and ecosystem that calls into questions what we to date have taken for granted: that a consumer who pays for connectivity to the internet will be able to get the content she requests,” said Netflix.

    The Consumers Union is another:

    “Under this proposed deal, two huge companies would become a behemoth,” said Delara Derakhshani, policy counsel for Consumers Union. “This has the potential to be a very bad deal for consumers. This industry is notoriously unpopular with consumers due to poor customer service, not to mention ever-increasing bills, and a deal this size doesn’t exactly convince us that things will get better.”

    Comcast says that the merger will “will make life online better for more people by bringing faster Internet speeds, a more reliable and more secure network, net neutrality protection, low-cost Internet access, and programming diversity to millions of new customers across the country.”

    Comcast expects the deal to close early next year, if approved. To pass the time while the FCC deliberates, Comcast and Time Warner can keep trying to give awards to FCC executives.

    Image via Comcast

  • Netflix to FCC: Say No to Comcast / Time Warner Cable Merger

    Netflix to FCC: Say No to Comcast / Time Warner Cable Merger

    Netflix, clearly unhappy with the proposed Comcast/Time Warner Cable merger from the outset, has finally made their concerns official with a petition to the Federal Communications Commission. In a just-filed Petition to Deny, Netflix argues that the entity formed by the merger would “have the incentive and ability – through access fees charged at interconnection points and by other means – to harm internet companies.”

    “The proposed merger puts at risk the end-to-end principle that has characterized the internet and been a key driver in the creation of the most important communications platform in history. Unsurprisingly, given their dominance in the cable television marketplace, the proposed merger would give Applicants the ability to turn a consumer’s internet experience into something that more closely resembles cable television. It would set up and ecosystem that calls into questions what we to date have taken for granted: that a consumer who pays for connectivity to the internet will be able to get the content she requests,” says Netflix in the petition.

    “The transaction would give Applicant control of a dominant share of the nations’s residential high-speed broadband customers at a time when those customers increasingly engage with more content-rich applications that require high-speed broadband to work properly, such as Internet-delivered video.”

    If the Comcast/Time Warner Cable deal is approved, the resulting entity would control over 60 percent of the country’s broadband households.

    We’ve seen Netflix make the net neutrality argument against this merger before. Upon release of their last quarterly earnings report, Netflix CEO Reed Hastings said,

    “Comcast is already dominant enough to be able to capture unprecedented fees from transit providers and services such as Netflix. The combined company would possess even more anti-competitive leverage to charge arbitrary interconnection tolls for access to their customers. For this reason, Netflix opposes this merger.”

    Now, that opposition is on governmental record.

    At the time, Comcast was quick to refute Hastings’ claims.

    “There has been no company that has had a stronger commitment to openness of the Internet than Comcast and we are the only ISP in the country that is currently legally bound by the FCC’s vacated Net Neutrality rules,” said SVP, Corporate and Digital Communications Jennifer Khoury. “In fact, one of the many benefits of our proposed transaction with Time Warner Cable will be the extension of Net Neutrality protections to millions of additional Americans.”

    Of course, all of this is taking place months after Netflix made a deal with Comcast to ensure high-quality streaming. There is a debate on whether those sort of deals, which Netflix is afraid are only going to increase with a Comcast/TWC merger, are even about net neutrality or simply business as usual – but it’s clear that Netflix wants to frame the potential merger as a strike to net neutrality.

    Image via Netflix

  • Comcast & Time Warner Cable Pass Time Awaiting Merger Approval by Helping Give Award to FCC Commissioner

    Comcast & Time Warner Cable Pass Time Awaiting Merger Approval by Helping Give Award to FCC Commissioner

    Do you pay a lot for cable and internet? Neat, me too. Check this out.

    You’ve probably never heard of it, but The Walter Kaitz Foundation is a decades-old non-profit organization with the stated mission of promoting diversity in the cable telecommunications industry.

    Every September, the Walter Kaitz Foundation holds a dinner in New York City called the Kaitz Dinner. It’s a pretty big social event for the cable industry. Each year, the foundation honors someone as a ‘Diversity Advocate’ – “an individual outside the cable industry who has demonstrated an unwavering commitment to diversity and has fostered an inclusive environment for the cable telecommunications industry.”

    This year, that individual is Mignon L. Clyburn – daughter of US Representative Jim Clyburn and current Commissioner at the Federal Communications Commission.

    As of right now, one of the biggest topics on the docket of the commission she chairs is the proposed merger of Comcast and Time Warner Cable. You know, that deal that nobody wants. If it goes through, the Comcast-TWC megabeast that emerged would control around 30 percent of the cable TV pool and closer to 40 percent of the high-speed internet market.

    As Delara Derakhshani of Consumers Union puts it, “Under this proposed deal, two huge companies would become a behemoth…it’s hard to understand how this kind of concentrated market power is going to benefit consumers.” But that’s just one side. Feel free to debate the merger’s benefits to customers in the comments.

    Anyway, back to this dinner. Turns out, it has some interesting sponsors. And by interesting, I mean completely expected and totally unsurprising. From Politico:

    Comcast will pay $110,000 to be a top-level “presenting sponsor” at the Walter Kaitz Foundation’s annual dinner in September, at which Clyburn is receiving the “diversity advocate” award, according to a foundation spokeswoman. Time Warner Cable paid $22,000 in May to the foundation for the same event, according to a Senate lobbying disclosure filed at the end of last month.

    TL;DR – Both Comcast and Time Warner Cable are paying to sponsor an event honoring the commissioner of the federal regulatory organization tasked with approving or disapproving their desired merger.

    Both Comcast and TWC say that they’ve been supporting the Walter Kaitz Foundation for many years (which is true) and it’s ludicrous to think their contributions have anything to do with “currying favor” (which is surely…something). A Comcast rep had this to say:

    “We absolutely dispute the notion that our contributions have anything to do with currying favor with Commissioner Clyburn or any honoree. Such claims are insulting and not supported by any evidence. They are purely fiction. We have supported the organization year in and year out regardless of who the dinner honorees have been.”

    Let’s play a game where I give Comcast the benefit of the doubt. This is my first time playing this game, so I’m not really sure how to do it. But I’ll try, and having done that, I gotta say, this whole thing still looks a bit…incestuous, don’t you think? Guys? Any concern about public image?

    So, there you go. That’s what’s going on right now. It’s not particularly surprising, and that fact in and of itself is what’s truly distressing.

    Image via FCC.gov

  • Comcast, Time Warner Still the Most Hated as Regulators Weigh Merger

    The American Customer Satisfaction Index, a gigantic (80,000 or so) annual survey that asks Americans about their satisfaction with certain companies and areas of the national economy, has once again shown that people really, really hate Comcast and Time Warner Cable.

    You know, those two companies that are trying to merge right now.

    This year, Comcast’s TV service fell five percent to a score of 60 (out of 100) in terms of customer satisfaction. Time Warner Cable’s subscription TV service fell seven percent to 56, its lowest score to date.

    Remember, Comcast is currently attempting to purchase Time Warner Cable. It’s undergoing regulatory investigations right now.

    If you thought the numbers on the TV service satisfaction were bad, wait until you hear the numbers for the internet service. Comcast dropped eight percent this year to 57, while Time Warner plunged 14 percent (!!!) to 54.

    Though their scores have changed, Comcast and Time Warner’s positions on the index have not. They are, once again, the two companies with the most dissatisfied customers.

    Once again, these two companies want to become one, and promise that it will be better for their customers.

    “Comcast and Time Warner assert their proposed merger will not reduce competition because there is little overlap in their service territories,” says David VanAmburg, ACSI Director. “Still, it’s a concern whenever two poor-performing service providers combine operations. ACSI data consistently show that mergers in service industries usually result in lower customer satisfaction, at least in the short term. It’s hard to see how combining two negatives will be a positive for consumers.”

    In other words, blending a rotten apple with a rotten orange does not a delicious smoothie make.

    To be fair, it’s not just Comcast and Time Warner that everyone hates. Americans are incredibly unsatisfied with their ISPs in general–all across the board.

    “High prices, slow data transmission, and unreliable service drag satisfaction to record lows, as customers have few alternatives beyond the largest Internet service providers. Customer satisfaction with ISPs drops 3.1% to 63, the lowest score in the Index,” says the ACSI report.

    But Comcast and Time Warner performed the worst. By far.

    “The Internet has been a disruptor for many industries, and subscription TV and ISPs are no exception,” says Claes Fornell, ACSI Chairman and founder. “Over-the-top video services, like Netflix and Hulu, threaten subscription TV providers and also put pressure on ISP network infrastructure. Customers question the value proposition of both, as consumers pay for more than they need in terms of subscription TV and get less than they want in terms of Internet speeds and reliability.”

    Dissatisfaction in your ISPs–as American as apple pie. If you think that plunging numbers in one of the country’s most important consumer surveys would affect any change among these companies, well, it’s best to remember this.

    Image via Wikimedia Commons