Charter Communications

Charter looking at financial options

Dan O'Shea — Mon, 15 Dec 2008 08:57:25 -0500

Charter Communications, the cable TV company in which Microsoft co-founder Paul Allen owns a controlling stake, is attempting to negotiate with its bondholders to alter debt financing to help the company navigate through financial challenges. Though the company showed revenue and subscriber gains during the third quarter and has been among the leading DOCSIS 3.0 pioneers, it is also heavily leveraged with about $21 billion in debt. About $7.1 billion of that debt comes due within the next five years.

A mountain of debt may be nothing new to a company built through acquisitions, but with the debt crisis alive and well, investors may show little patience, and companies are becoming more sensitive about exploring various financial options earlier than they normally would. For Charter, that likely means debt restructuring or possibly a deal in which some of the debt is converted to stock.

Charter has been on thin ice before, and the company actually considered a sale or privatization at one point last year. Could the company return to the idea of selling itself, or parts?

For more:
- The Wall Street Journal reports

Patent ruling due in Verizon lawsuit against Cox

Dan O'Shea — Mon, 06 Oct 2008 09:08:30 -0400

Verizon Communications is awaiting a jury decision in its VoIP patent lawsuit against Cox Communications, and that ruling could come as soon as today, according to The Wall Street Journal. Verizon sued Cox over the alleged violation of six VoIP-related patents, and the action is just one of a series of similar accusations Verizon has leveled, including patent violation claims against VoIP service provider Vonage and cable TV firm Charter Communications.

The Vonage case was settled with an agreement that Vonage would pay Verizon $117.5 million. The lawsuit against Charter is pending. Verizon is seeking damages of $404 million from Cox. The WSJ reports that Verizon previously struck a deal with Comcast under which the two companies agreed not to sue one another for at least five years, if Comcast agreed to buy Verizon Wireless service for its employees. As cable TV companies continue to win over telephony subscribers, Verizon is looking to get its piece of the action one way or another.

For more:
- read this report at The Wall Street Journal

TWC won't throw down DOCSIS 3.0 blanket

Dan O'Shea — Tue, 09 Sep 2008 23:31:00 -0400

DOCSIS 3.0 has been seen as the cable TV industry's answer to big-bandwidth fiber networks, with speed potential from 50 Mbps to well beyond 100 Mbps. Comcast, Charter Communications, Time Warner Cable and other cable TV operators have been testing the technology and have committed to deploy it. This week, TWC chief operating officer Landel Hobbs said at a conference in California that his company's strategy will be to deploy DOCSIS 3.0 "surgically" in markets where it is most needed, but not in markets where the company is finding support for its tiered broadband services.

With big telcos Verizon Communications and AT&T pushing fiber aggressively into new markets, you would expect to see a major cable player blanket markets with its own next-generation broadband solution as quickly as possible. It will be interesting to see what competitors and TWC's "have-not" customers make of this plan.

For more:
- see this report at Multichannel News

Red Wing, Minnesota: Boots, skates … fiber?

Jim O'Neill — Tue, 12 Aug 2008 08:34:01 -0400

Tiny Red Wing, Minn.-home to Red Wing boots and Riedell ice and roller skates-is gearing up a pitch to its residents for a citywide fiber optic network, a plan that local cable provider, Charter Communications, already is pooh-poohing as being unnecessary-who needs all that speed?--for the city of just under 20,000 residents on the Mississippi River.

Charter spokesperson Tucker Carlson said that while a fiber optic system would represent the fastest network available, few users really "need" the speed. "Just like there's not that many people who feel they need to drive a formula one race car to work," he said.

Oh, boy.

Red Wing city leaders disagree and are getting information out to residents and talking feasibility studies and marketing plans. "I think this is the most important thing since electricity," Council member Stephen Castner said. Added Red Wing Port Authority Executive Director Myron White on the city's push into technology: "You're either going to be cutting edge or your going to be playing catch-up."

The push to muni-fiber has been gaining momentum across the country as cities begin to see it as a piggyback utility with potential to lure economic growth and even serve as a profit center. (Or, not, think about the iProvo debacle.) It's become so poplar, in fact, that after initially ignoring new networks, cablecos and telcos have begun to fight tooth and nail to block cities from undertaking projects, taking municipalities to court in an effort to head off funding through municipal bonds, a course of action Carlson suggested if Red Wing decides fiber's in its future.

For more:
- See the Red Wing Republican Eagle story

Related articles:
Telco battles Minnesota city over FTTH plan. Telco report
Telcos go to court over municipal fiber. Telco report
Judge won't block Chattanooga's muni-fiber network. Chattanooga network report

Embarq told subs of NebuAd test via Web site

Dan O'Shea — Sun, 27 Jul 2008 15:49:41 -0400

Independent telco Embarq told legislators looking into service provider use of deep packet inspection and potential online privacy breaches that it had notified broadband customers more than two weeks prior to its NebuAd DPI test in Gardner, Kan., by posting the notice in its privacy policy on its company Web site. That test occurred earlier this year.

The telco said in letters addressed to the House Energy and Commerce Committee investigating Web tracking issues that it informed customers it was conducting a targeted advertising test using information gained from monitoring anonymous Web-surfing behavior, and offered them the ability to opt out, according to a story at The Washington Post. About 15 of 26,000 broadband actually opted out of the test.

What do you think? Did so few people mind that their Web browsing might be tracked? Rep. Edward Markey (D.-Mass) and other committee members are already suggesting Embarq should have used a more direct approach. The admission by Embarq will add further fuel to Markey's attempt to force service providers to use opt-in policies for such tests rather than opt-out offers. Either way, it would not be surprising to see service providers adopt more aggressive informational campaigns as they pursue such tests in the future--if they pursue them.

For more:
- read this story at The Washington Post

Related articles:
Charter Communications dropped plans for a NebuAd test. Charter report
NebuAd was the subject of a Senate hearing earlier this month. NebuAd report

Markey seeks Web-tracking opt-in rule

Dan O'Shea — Fri, 18 Jul 2008 10:28:14 -0400

After grilling companies about online behavioral tracking technology and their controversial usage of opt-out policies, Rep. Edward J. Markey (D-Mass.), chairman of the House Telecommunications and Internet Subcommittee, said he wants future online privacy legislation to include a rule for such solutions to use opt-in policies instead.

Rep. Markey and other legislators condemned the possibility of service providers tracking customer Web usage to deliver targeted ads, unless the gain clear authorization from those customers to do so. Since the Comcast traffic-shaping controversy, other service providers, under legislative pressure, have started to re-think or postpone their tests of deep packet inspection and other solutions that could be used in such a way.

Markey said, of opt-out practices: "That's basically saying silence is consent and as a result you can do whatever you want with their information."

For more:
- read this report at The Los Angeles Times

Related articles:
Embarq has been questioned about its Web-tracking project. Embarq report
Charter Communications faced legislative pressure to postpone. Charter report

House committee questions Embarq's NebuAd test

Dan O'Shea — Wed, 16 Jul 2008 09:01:39 -0400

Legislators in the House Commerce Committee sent a letter this week to Embarq, wanting to know whether the independent telco informed customers when it tested behavioral Web-tracking technology from NebuAd earlier this year.

NebuAd, of course, offers a data collection solution that can help carriers create targeted advertising for users by collecting thorough information on their Web usage patterns. Charter Communications recently pulled back on a planned test of the NebuAd technology because of public outcry over privacy concerns, and CenturyTel postponed using the technology at the request of the legislators who are currently investigating it.

For more:
- check out this post at Wired News Blogs

Related articles:
NebuAd's CEO recently defended the company to legislators. NebuAd report
CenturyTel said earlier this month it would hold off using NebuAd. CenturyTel report

NebuAd CEO gets grilled on The Hill

Jim O'Neill — Fri, 11 Jul 2008 09:34:25 -0400

Eventually, it seems, we'll all make an appearance before a Senate or House subcommittee on something or other. This week's guest of honor in front of a Senate sub: Robert Dykes, the CEO of NebuAd, a company catching all kinds of flak for software that collects info on individual's Web surfing habits, then delivers targeted ads to users based on their wanderings.

More than a few cablecos and telcos operating ISPs have been champing at the bit for the opportunity to use NebuAd to drive additional online revenues their way, but privacy advocates have hopped all over this bandwagon, and it's having a tough time getting going. So far, CenturyTel, Charter Communications and a handful of other hopefuls (about a dozen in all) have stopped testing it after protests from customers or appeals from privacy advocates, including a couple of senators. But it's definitely whetting their appetites.

Critics say the software may be illegal, a form of wiretapping, because it has no opt-in (or out), and doesn't inform users they're being monitored.

But Dykes told the Senate's Commerce, Science and Transportation Committee that NebuAd's limited data collection is anonymized, including the IP numbers. In the data's aggregated forum, it would be impossible to identify a subscriber.

"No one, not even the government, can determine the identity of our users," he said.

For more:
- See the PC World story

Related articles:
CenturyTel holds NebuAd--for now CenturyTel report
Are Embarq and CenturyTel moving ahead with NebuAd? NebuAd report
Charter drops plan to track web usage Charter Web tracking story
Congressmen ask Charter to delay snooping plan Charter report

CenturyTel puts the brakes on NebuAd

Jim O'Neill — Tue, 01 Jul 2008 07:16:07 -0400

Add another ISP to the list of those that have put off the implementation of NebuAd's controversial behavioral tracking ad platform. Last week Charter Communications said it was putting tests on hold after subscribers expressed concern about privacy issues; this week it’s CenturyTel’s turn to back off NebuAd.

CenturyTel isn’t being quite as customer-centric as Charter, saying the move instead was prompted by requests from Rep. Ed Markey (D-Mass.) and Rep. Joe Barton (R-Texas), who said the technology "raises several red flags."

"We have delayed implementation [of NebuAd] so that Congress has the time it needs to address the issues and policies associated with these services," CenturyTel spokeswoman Annmarie Sartor said. It’s quite a 180 considering that a CenturyTel spokesman last week pooh-pooed the Charter move as related to cable industry regs that didn’t apply to telcos. The telco, among the first providers to test NebuAd, said it had planned to go live with the software sometime this summer.

Markey last week praised Charter for its actions and added “I urge other broadband companies considering similar user profiling programs to similarly hold off on implementation while these important privacy concerns can be addressed."

NebuAd behavioral tracking has raised the hackles of a number of privacy groups in the U.S. including the Electronic Privacy Information Center, the Electronic Frontier Foundation, the Center for Democracy and Technology, the Center for Digital Democracy, Public Knowledge, and Free Press.

Nevertheless, CenturyTel says it still supports NebuAd.

For more:
See the story at The Register

Related articles:
Are Embarq and CenturyTel moving ahead with NebuAd? NebuAd report
Charter drops plan to track web usage Charter web tracking story
Congressmen ask Charter to delay snooping plan Charter report

Cable customer care leaves room for improvement, execs say

Jim O'Neill — Fri, 27 Jun 2008 09:24:10 -0400

The cable industry “has to get better at customer care,” as telcos continue to push into providing TV and broadband, Comcast Cable COO Steve Burke said during the opening session of SCTE Cable-Tec Expo in Philadelphia. “We have a long way to go,” he said.

And, he said, the industry needs to fix its issues quickly, especially with Verizon’s FiOS lurking. “We need to be better at proactively monitoring our networks,” he said. “If we don’t fix that reliability it’s going to stop us from bringing exciting things to market.”

Burke said Comcast will squeak out every bit of bandwidth to be able to offer all channels in high def, and will begin reclaiming its analog bandwidth this year.

“Ultimately every single channel is going to be in high def,” Burke said. “We just need more capacity. We have to make this investment. We have to do it. We have to get going and now’s the time.”

Charter Communications President and CEO Neil Smit agreed, saying cable operators needed a level-by-level approach to repair damaged relationships with customers who’ve come to expect sometimes substandard service from cable operators. “I don’t think it’s one solution; it’s a lot of singles and maybe a double here or there,” he said.

For more:
- See the Telecom Magazine story

Related articles:
Cable tops telcos in Q1 broadband battle Cable broadband report
Telcos, cable swap places--for now at least Telco report

Are Embarq & CenturyTel still tracking subscriber Web use?

Jim O'Neill — Fri, 27 Jun 2008 07:52:02 -0400

Are Embarq & CenturyTel still tracking subscriber Web use?

Charter Communications Tuesday said it had dropped its plans to test online advertising company NebuAd’s web-use tracking technology because of concerns raised by its customers. But two telcos that recently competed the testing are on the fence as to whether they plan on moving forward with web tracking programs.

"We are not currently using behavioral targeting tools and have not decided whether to move forward with them, either through NebuAd or with any other vendor," said Embarq spokeswoman Debra Peterson.

CenturtyTel spokesman Tony Davis, said it was his understanding that the reaction to Charter's proposed test had to do with cable industry regulations that don't apply to a phone company, saying "At this point it's not affecting our thinking.”

NebuAd collects data on Web users’ interests by tracking the sites they visit, passing it along to online advertising companies so they can display more relevant ads on Web sites.

Charter’s plan drew fire from privacy advocates and forced them to drop the program.

For more:
- See the Associated Press story

Related articles:
Congressmen ask Charter to delay snooping plan Charter report
Charter drops plan to track web usage Charter web tracking story

Charter drops plan to track Web usage

Dan O'Shea — Tue, 24 Jun 2008 23:06:02 -0400

It is supposed to be the age of the personalized experience, and most broadband service providers are intent on delivering personalized services, right down to the ads involved. It's not a new idea, and it makes sense, right? Show customers ads that fit with their interests and tendencies, and both the customer and the advertisers win; but we are also in the age of the privacy wars, with advertisers and all kinds of service and product providers willing to test the limits of how customers define their own privacy.

Cable TV firm Charter Communications may have reached those limits and appears to be turning back. The company had been working with deep packet inspection vendor NeBuAd on a plan to track the online usage of some of its broadband users in order to deliver more targeted, personalized ads to them. However, customers and politicians in the markets where the practice was aimed have raised enough concerns about the program and the effectiveness of its opt-out policy that Charter is dropping the idea--at least for now.

DPI has much promise as a traffic management technology, and while more carriers are turning to it, it also comes with a dark side. Service providers will need to be abundantly clear exactly how they plan to use it.

For more:
- read this article at The New York Times
- see this post at GigaOM

Related articles:
Charter Communications last month reported a lower first-quarter loss Charter report
Charter also has been sizing up DOCSIS 3.0 Charter report

Cable companies run fiber fib ad blitz in fight with Verizon’s FiOS

Jim O'Neill — Tue, 24 Jun 2008 07:11:38 -0400

Comcast and its cable allies have lined up a series of broadcast ads belittling Verizon's vaunted FiOS network, claiming to have a larger fiber-optic network. What the ads don't point out is that while fiber is used in the network, it doesn't go to the home as is the case in most FiOS applications.

Cox, Charter Communications, Cablevision and Time Warner Cable all have thrown in with Comcast in running the misleading ads. Comcast also is starting to run the ads in some newspapers. It recently ran one in the Seattle Post-Intelligencer saying, "We already have a fiber-optic network serving ALL our homes."

Verizon and cable companies have locked horns in the courts over ads in the past. Could this be the next ad campaign to get lost in the courts?

For more:
- See this AP story

Related articles:
Verizon sues Time Warner Cable over ads Verizon lawsuit report
Verizon recently began its analog-to-digital transition for FiOS. Verizon report