Comcast complaints grow

Comcast is halting old-timey analog transmission of about 50 channels to free up bandwidth for more high definition channels, a larger library of on-demand programming and faster Internet. The company, with 800,000 customers across metro Atlanta, expects to complete its digital switch by early next year.

Comcast spokesman Larry Schweber said the company has received few complaints from customers in areas where the digital switch has occurred. “From what we are hearing, our customers are happy with what they are getting,” Schweber said.

But the move, timed so close to the national switch, has created confusion for some customers and anger among others whose bills jumped.

“It just seems like when Comcast wants to do something, they do it,” Virostek said, “and they put a spin on it to make it sound like it was the greatest thing to ever happen.”

Virostek was hit with extra monthly charges because he has five TVs hooked to cable and Comcast provides free equipment for a maximum of three. “I just don’t like the fact that we’re a captured audience,” he said.

Cable television companies consistently rank near the bottom on customer satisfaction surveys by Consumer Reports magazine, said Joel Kelsey, a policy analyst at Consumers Union, the magazine’s publisher.

“That’s a result of a lack of competitive pressure in the marketplace,” Kelsey said.

In a 2007 Consumer Reports survey, Comcast rated poorly in customer satisfaction among its peers that provide television, phone and Internet services.

The federal government lightened regulation of the industry more than a decade ago because regulators believed the market was ready to become competitive. “They got rid of the rules in anticipation of competition that never arrived,” Kelsey said.

Competition from satellite television has not pushed prices down, although a second cable provider does lead to better deals for consumers, according to the Federal Communications Commission. But few cable companies are willing to spend to add wires to neighborhoods served by another cable operator.

Limited competition has allowed shoddy customer service, a lack of innovation and rising prices, consumer advocates said. Average charges nationally for expanded basic cable services jumped 122 percent between 1995 and 2008, a period when consumer prices overall increased by just 38 percent, according to the Federal Communications Commission.

Comcast, which has been in the Atlanta market since 2002, now charges $55.75 for its standard cable package, up from $39.91 in 2002.

“They would be more responsive if you had more competition,” said Marvin Ammori, a law professor at the University of Nebraska-Lincoln and an expert on communications policy.

A new player with lots of resources is beginning to go head-to-head with cable. Telephone companies, who were hit with new competition when cable companies started offering high-speed Internet and phone services, are now selling TV services.

Using Internet-based technology, AT&T has introduced its “U-verse” television service in some parts of metro Atlanta. The company boasts that U-verse has lots of high-definition channels, the ability to record a show on one TV and watch it on another, and an option to personalize your TV screen with weather data, sports scores or stock quotes.

“The telephone industry long term is going to be a major factor in the cable industry’s business model,” said Richard A. Gershon, a telecommunications expert at Western Michigan University.

Another new competitor is out there: Web sites such as hulu.com offer free television programming over the Internet, eliminating the need for cable subscriptions for some consumers.

Cobb County’s Dale W. Turner said Comcast’s digital transition has resulted in a maddening downgrade in service for him. Turner had eight TVs on cable, plus five cable connections to computers he set up to view and record television programs. He used his set-up to record programming for himself and for his son, who is in the Army and stationed in Iraq. Comcast charges $1.99 a month for each new adapter, after the free conversation equipment it provides for up to three sets. Buying the equipment, instead of paying a monthly fee, is not an option.

Turner’s bill would jump $20 a month if he hooked up everything he has connected to cable now. Even then, Turner said, he doesn’t believe the recorders he has hooked up to computers will work in the automated way he has them configured.

Turner has complained and is frustrated that he can’t keep sending his son recordings of NASCAR races and other programs he enjoys. But Turner said he’s gotten nowhere. “There’s no negotiating,” he said.

Kennesaw resident Carla Swartz also filed a complaint. Her family, including three teenagers, has eight TVs and faced a $10 bump in its monthly bill because of the changeover.

“That is a sneaky way for them to increase their fees,” Swartz said in her complaint to Cobb County. ‘I’m furious and have begun looking at options other than Comcast.”

But her options are limited. Charter, which operates in parts of Cobb, is not in her neighborhood. AT&T’s new service isn’t available either.

“We don’t have any choice,” Swartz said.

Schweber, the Comcast spokesman, said that since the average household has 2.8 TVs, it made sense to provide free equipment for three television sets and charge a rental fee beyond that. “These boxes do cost something,” he said. “Somewhere you have to draw a line.”

Schweber said Comcast’s competitors also charge consumers a monthly rental fee for digital equipment.

While cable companies generally set their own rates and charges, they face some requirements as part of franchise agreements they signed with local governments to gain access to public rights of way. Most local governments take complaints about cable providers as part of those agreements. But the local governments have limited leverage and many simply forward complaints to the company.

Under a law passed by the Georgia General Assembly authorizing a statewide franchise agreement, telecommunications companies and cable providers can now bypass local governments. While the new law may encourage competition, consumer advocates say statewide franchises, which many states use, tend to provide fewer consumer protections than those negotiated by local governments.

“There are few provisions to insure that consumers get low prices, or that there is not discriminatory treatment in deployment to wealthy neighborhoods,” Ammori said.

Lawmakers are relying on competition to make the television marketplace work for consumers. The new players will help consumers with more choices, but true competition doesn’t exist with just two or three players, experts said.

“There is more competition than there was eight years ago, but it’s still very imperfect competition,” said Gershon, the Western Michigan professor.

The most likely results of new competition from the phone companies will be better customer service and more channels offered. “I don’t think it’s going to affect prices,” said Kelsey, of Consumers Union.

The Comcast Digital switch

Metro Atlanta’s top cable television provider is in the midst of its own digital migration that is not related to the national digital transition that took place earlier this year.

Why is the change taking place? Comcast is moving customers to digital service to free up network space. That will allow for more high-definition channels, faster Internet speeds and more offerings in its on- demand library of television shows and movies.

Who is affected? The changeover affects Comcast customers who plug the cable cord directly into their television sets instead of using a box. After making the switch, customer should get better picture quality and some new channels. Customers who don't install new equipment will only retain channels 2 to 26. "Limited basic" cable customers, who already receive only channels 2 to 26, will not be involved in the change and will not need new equipment.

What's involved in the change? For customers who do not have a digital box, Comcast will provide a free digital box and two free digital adapters to customers who do not have a digital box. Customers with a digital box can get two free adapters. To maintain service on additional TVs, customers must pay an extra $5.99 a month for a digital box or an extra $1.99 a month for each adapter. The adapters, which look like a small cable box, allow access to channels 2 to 78. The digital box gives customers access to those channels as well as On Demand, music channels and special features. The boxes come with new remote controls.

When will I be converted? Comcast will alert customers who are soon to undergo the change. The company offers customers the option of installing the new equipment themselves, which the company will send in the mail or offer for pick-up at retail outlets. Comcast will also send an installer if a customer makes that request. The switch has already occurred in some neighborhoods on Atlanta's northside. Comcast expects the switch to be completed across metro Atlanta by early next year.

How do I find out more? Contact Comcast at 1-877-634-4434 on the Web at Comcast.com/digitalnow

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Cable charges

The average cost nationwide of expanded basic cable service is $49.65 a month — up 122 percent from 1995, according to the Federal Communications Commission. During the same period, consumer prices rose 38 percent. Comcast entered the Atlanta market in 2002, when its standard cable package cost $39.91. The cost of the standard package has gone up by 40 percent since then. But the company notes that its lineup today offers more channels and services than it did seven years ago.

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Cable’s top company

Comcast is the nation’s leading cable company. At the end of last year the company had 24.2 million cable television customers, 14.9 million high-speed Internet customers and 6.5 million phone customers. The company serves 800,000 customers across metro Atlanta.

Comcast revenues

2006: $24.9 billion

2007: $30.9 billion

2008: $34.3 billion

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Got a tip?

Do you suspect a consumer rip-off, government waste or a threat to public safety? Tell us what you want investigated. E-mail spotlight@ajc.com or call 404-526-5041.

Spotlight columnist Alison Young will return soon.

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How we got the story

The AJC received a tip about potential problems related to the Comcast conversion. The newspaper conducted interviews with Comcast executives, government officials, consumers and industry experts. The AJC used the Georgia Open Records Act to gain access to complaints filed with Cobb County. The newspaper also reviewed Federal Communications Commission reports, local franchise agreements and state laws that pertain to the industry.