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On a quest for decent telecom service

Regulation has failed to keep up with the commercial transformation of the telecommunications industry. A bad experience that resulted from bundling TV, phone and Internet service shows why.

September 07, 2011|Michael Hiltzik
  • Companies such as Time Warner Cable are now among our biggest providers of services that used to be utilities, but, freed of effective oversight, they dont feel pressure to match the old utility service standards. Above, a Time Warner Cable technician works in his van after making a house call in Los Angeles.
Companies such as Time Warner Cable are now among our biggest providers… (Kevork Djansezian, Getty…)

It's tough to admit, but I made a big mistake.

I put all my eggs in one basket, and that basket was Time Warner Cable.

As a result, when the company's system went down last week, my family lost not only all our television service, but our Internet connection and home telephones too.

This may be the 21st century, but Chez Hiltzik was reduced to a dark uncivilized island, bereft of all communication with the outside world. No Netflix. No "Curb Your Enthusiasm." No email. No voicemail.

When I finally reached Time Warner on that silent Sunday via my intermittently serviceable cellphone (we're in a transmission hole between towers, so we often have to walk down the block for a decent signal), I was informed they'd roll a service truck to me as soon as possible. Which meant: two days later.

I'm not alone in abominating Time Warner's service, as the company often ranks below par in customer satisfaction surveys. But my experience should serve as a caution before you think of taking up any company's offer to bundle all your critical telecommunication services together. I'm a victim.

This isn't a beef about the men and women on Time Warner's front line. The company's technicians and maintenance crews have been invariably professional, polite and efficient, often above and beyond the call of duty. They've done their level best to diagnose and repair my service. But 10 days after the first outage, my Internet and phone services are still cutting out once or twice a day.

Telecom companies say bundling is a great deal for you, the customer. You get one bill in the mail instead of three, and the services are cheaper wrapped together than a la carte. But the real benefits flow to the providers. Through bundling they monopolize access to your household, to which they can also sell on-demand entertainment, enhanced features such as hi-def video, and apps for mobile devices such as cellphones and tablets. Bundling raises the bar to competitors, because once you've switched to a single provider it's a pain in the neck to switch away.

It may not be fair to pick on Time Warner alone, as it's certainly not the only cable provider that receives poor marks. A bigger issue is that regulation has failed to keep up with the commercial transformation of the telecommunications industry.

Decades ago, the home phone was regarded as a utility, requiring a high standard of service. Until 1984, AT&T was our national telephone monopoly; it faced no commercial competition to keep it honest but was subject to stringent regulation. Whatever the incentive, Ma Bell took pride in engineering its system to "five nines" reliability — it had to work 99.999% of the time.

The idea behind the 1984 breakup of AT&T was that competition would substitute for regulation. With new companies empowered to offer better service, novel features and lower prices than the remnants of the old, the marketplace would effectively monitor service standards and pricing, and customers would reap the benefits.

Things haven't worked out that way, largely because competition has been a mirage. In most places there's a single cable system providing cable TV and Internet service. Satellite services can compete for TV customers but typically don't provide Internet connectivity. Fiber-optic systems such as Verizon's FiOS and AT&T's U-Verse offer TV, Internet, and voice and get high marks for service, but they're not universally available (and not in my neighborhood).

Meanwhile, state regulators don't have the sway over cable or wireless operators they had over conventional phone providers. Cable-based phone service like Time Warner's barely comes under the California Public Utilities Commission's jurisdiction.

At the federal level, telecom regulators now seem to think their main role is to windmill big mergers through to approval as fast as they know how — the government's recent challenge to the proposed wireless merger of AT&T and T-Mobile landed on the front page because it was a man-bites-dog moment.

Companies such as Time Warner are now among our biggest providers of services that used to be utilities, but, freed of effective oversight, they don't feel pressure to match the old utility service standards.

Time Warner essentially places the onus for monitoring system conditions on the customer. Service reps have told me that they won't declare an official outage until they receive problem reports from three customers, even though the company has the technology to know what's happening on its system all the time — its techs can see from their end if my cable modem is dead, they just don't look until I ask.

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