Oceanic Time Warner v Hawaiian Telcom is still a tough call

16 Replies

A couple of weeks back, I wrote about a glitch in scheduling of a service call to get our home phone service functioning again. The first attempt ended when the tech failed to show up as scheduled, or at least how it was supposed to have been scheduled.

I’m glad to say the second attempt went smoothly. I got a call several days in advance from the Hawaiian Telcom dispatch office confirming the appointment, and the technician showed up as scheduled and had the problem fixed in short order (it involved identifying the telephone outlet that was causing the problem and replacing it).

In any case, the post drew lots of comments, which seemed pretty evenly split. Both Oceanic/Time Warner and Hawaiian Telcom have their share of satisfied customers and detractors, and it seems there is anecdotal evidence of problems facing both companies.

Hawaiian Telcom is experiencing steady erosion in their residential landline and long distance businesses, while internet service and video (Hawaiian Telcom TV) services are expanding, the latter at a rapid pace. Revenue from video services were up 101.9% over the first six months of 2014, compared to the same period a year earlier.

And video appears to have lots of room to grow. As of June 30, 2014, the company reported 23,101 tv subscribers, with 142,000 homes now able to get their video service.

In a recent filing with the SEC, the company reported:

The decrease in local voice services revenues was caused primarily by
telecommunications industry has increasingly resulted in customers using technologies other than traditional phone lines for voice and data. Residential customers are increasingly using wireless services in place of traditional wireline phone services as well as moving local voice service to VoIP technology offered by competitors. Generally, VoIP technology offered by cable providers is less expensive than traditional wireline phone service, requiring us to respond with more competitive pricing. Additionally, Competitive Local Exchange Carriers (CLECs) and our cable competitor continue to focus on business customers and selling services to our customer base.

In an effort to slow the rate of line loss, we are continuing retention and acquisition programs, and are increasingly focusing efforts on bundling of services. We have instituted various “saves” tactics designed to focus on specific circumstances where we believe customer churn is controllable. These tactics include targeted offers to “at risk” customers as well as other promotional tools designed to enhance customer retention. We also emphasize win-back and employee referral programs. Additionally, we are intensifying our efforts relative to developing tools and training to enhance our customer service capability to improve customer retention and growth.

On the other hand, Oceanic’s market is pretty saturated, leaving them little room for growth except for price creep and upselling, or so it seems to me. They’re obviously the largest player in broadband and television, but they have no upward path, at least on the consumer side of things. If Hawaiian Telcom is right, then Oceanic is concentrating on pushing into business markets.

One thing that hasn’t changed is the lack of rate transparency.

Both Hawaiian Telcom and Oceanic tout their promotional prices and packages, but try to find the “regular” prices that will kick in once your promotional term expires. I still haven’t found a list of non-promotional prices for either company either online or elsewhere. With some interrogation, you can get a customer service or sales rep to verbally rattle off some prices, but try to get a price list for reference and you’re out of luck.

Of course, that’s just me. I would certainly be interested in your experiences.

Others tell me that Hawaiian Telcom’s television service does save some money over Oceanic’s prices, but I don’t know if that’s the promotional pricing, regular pricing, or whether services are comparable enough to get accurate comparisons.

In any case, it looks like the choice for delivery of residential broadband and television service is still a very difficult one.

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16 thoughts on “Oceanic Time Warner v Hawaiian Telcom is still a tough call”

  1. maunawilimac

    Oceanic’s rates appear to creep up monthly. Our August bill came to $191.64 versus $183.69 the month before. It was $146.31 back in Jan. 2010. Breaking down the August bill: the phone, surf, watch pack was $146.99 (“savings: $149.49.”) versus $141.95 the month before (“savings:$54.53.”) or a $5.04 one month jump. A new $2.25 “Broadcast TV fee” suddenly popped up this month. Other fees and taxes included jumps as much as 22 cents and, of course, it all resulted in a 32 cents jump in the GET for the month.

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  2. me

    With Oceanic, good luck getting anything in writing; they will tell you verbally, though. The recent go-round we had with them that resulted in a better pricing package “Isn’t something I can put in writing” in e-mail or physical mail, according to the CS rep, but the next bill was indeed reduced to the amount she said it would show. That’s great if the person does follow through, as this person did, but all-verbal doesn’t provide the customer with a method of recourse.

    With Hawaiian Tel, I was able to get an e-mail recap on the day of installation of the prices. One section shows the line-item charges for the bundle now, another section shows the line-item charges for the bundle after the promo expires. It was weird that the installers aren’t given paperwork for the customers, but I’m actually happier with the e-mail. I encountered this before when changing our phone-only bundle … the person was able to give me line-item amounts verbally and to follow up with an e-mail.

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  5. t

    Burl:

    I do *not* recommend responding. Some people believe they know everything because they know how to use Google.

    Anything can be Googled. resistance is futile. and a waste of time. enjoy your weekend, like everybody else.

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  6. Bill

    For television, the options of DirectTV, Dish, and a regular antenna (in most areas) should included. Also, television can be more or less be eliminated entirely at this point.

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  8. HappyInTheEnd

    There’s little to no incentive for either vendor to speed up its service schedule, since users will not be choosing based on that, for example.

    For some, there may be a clear reason to choose TWC or HawTel.

    But try this. Haggle. At the suggestion of Consumer Reports, we did that, and not only pared about $50 a month off of our bill, but got faster Internet service at the same time.

    What happened was that Hawaiian Tel pushed a huge promotion for bundled TV and Internet. They said the Internet would be faster, but actually, it resembled their regular DSL service which meant very slow upload speeds. And the TV was cheaper, but there was no HD in that package. HD would be more expensive. And the entire promo was good only a year. After that? “Prevailing rates.”

    So we called up Oceanic and asked what promotion they could offer. They instantly (that day) cut our rates and doubled our speed (which I verified) for the same package we have had. For one year. That equaled, at least, the phone company offer.

    Oh, having chosen to stay with Oceanic, we then bought a cable modem to avoid the month charge on our bill. If we had switched, we could not have done that. Also, had we switched, it’s not clear that the telephone company wireless router would have handled our Ethernet configuration, since it assumes everything connects via their provided wireless router.

    I haven’t had a landline for years. VOIP works fine, and ours has 911 service which many don’t. Yes, in an emergency, it will be in trouble. You can now buy “network” UPS backup devices to keep your modem and router up, or just use a regular UPS. The one Costco offers should keep a network alive for many days if not used also for desktop and monitor.

    CU reports that people who haggle achieve success some of the time. We had an opportunity because Oceanic certainly knew about the Hawaiian Tel push in our neighborhood. Sure, after a year, who knows what the rate will be, but meanwhile the savings are welcome. As is the Internet speed increase.

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  9. me

    @ maunawilimac, if you want to stick with Oceanic, you might try calling in about the billed amount. I pushed less this time than I did a few years ago, and this time, we actually got a substantial savings.

    Actually, all I said was I was disappointed our bill kept going up while we were having [specific ongoing problems, including the one I was calling about].

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  10. Allen N.

    Personally, I’ll be disappointed not to get an answer to my straightforward question. It’s one thing to voice experiences and opinions on the quality of customer service that OTWC provides to its customers. Making accusations that the company has actually broken laws is another matter entirely.

    Say what you will about me. But is too much to ask for such serious accusations to be backed up by some sort of factual basis?

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  11. Burl Burlingame

    At issue is the Cable Television Consumer Protection and Competition Act of 1992. After 10 years, cable companies were mandated to allow customers to order preminum channels — anything over “basic tier” rates — on an individual basis, at a fraction of the cost of ordering the whole enchilada.

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  12. Allen N.

    First of all, thanks for your response.

    If you’re referring to the tier buy-through prohibition in the 1992 Cable Act, do keep in mind that this is a complex provision with many caveats and exceptions.

    The following link provides the FCC’s Q-and-A on the tier buy-through prohibition.

    http://www.fcc.gov/guides/consumer-options-selecting-cable-channels-and-tier-buy-through-prohibition

    Now based on all that info, is it still a certainty in your mind that Oceanic is violating the 1992 Cable Act?

    Just because you’re required to rent a set top box to subscribe to HBO does not constitute a violation of the law. Per the FCC:

    Q: Can a cable operator require the use of a set-top box to receive per-channel or pay-per-view programming?

    A: Yes. The tier buy-through provision does not prohibit the use of a set-top box in order to receive these services.

    Also, does Hawaiian Telcom’s foray into the TV business have an impact on how the buy-through prohibition is applied to Oceanic? It might. Once again, per the FCC:

    “The tier buy-through provision does not apply if the cable operator is subject to “effective competition” as that term is defined by federal law. In addition, a cable operator may request a waiver of the tier buy-through prohibition from the Commission.”

    Now, I don’t have the info to say whether or not Oceanic is exempt from this prohibition, but then again, I don’t think anyone can just assume that OTW is violating the law either without doing further research into the matter. And please, no sarcastic remarks about how HT is perceived as an effective competitor to OTW. Can we agree to stick to the facts, in order to determine if OTW is breaking the law or not?

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  13. compare and decide

    In your post a couple of weeks ago, among the comments, several people noted that they want to maintain a land line phone in case of a natural disaster if the power goes out.

    Judging from all the telephone poles in your photographs of Kaaawa, perhaps more than a few land lines will not work in the aftermath of a natural disaster. The idea of securely snuggling under a blanket in one’s house during a storm is not applicable to a true natural disaster. If a category 5 hurricane makes land, one can expect many or most of the wooden structures to become seriously compromised. In a serious emergency, mobility might be the better option (or only option).

    It might be time for many of us to think about purchasing a satellite phone. Quality and choice has risen recently, and costs are declining. Sat phones are now as cheap as $500 (cheaper than some smart phones) and plans can start at $24/month.

    Anyone who spends more than $100/month on gourmet coffee – and that is a lot of folks – has no excuse not to buy a sat phone. (That might be especially true for those who live in somewhat rural areas.) It’s peace of mind. Also, a sat phone can go anywhere, on a trip or when you move. You can lend it to your daughter (or granddaughter) when she goes camping or gift it to her when she goes off to college, and buy a new one for yourself.

    Here’s a review that is particularly useful because it explains whether and when one should consider buying a sat phone.

    http://www.forbes.com/sites/marcwebertobias/2013/03/18/how-and-when-to-buy-a-satellite-phone/

    How And When To Buy A Satellite Phone

    You can debate all you want about whether global warming is causing the extreme and violent swings in weather conditions we’ve been experiencing, but it’s always a good idea to be prepared for when all those hurricanes, tornadoes, floods, and fires wreak havoc on our power and telecommunications infrastructure. If a cell tower goes down during an emergency, the whole network is at risk of being overloaded or may fail entirely. One of the most important tech tools for any prepper is a satellite phone, which bypasses entirely the local system.

    Sat phones rely on a network of satellites that are either fixed above the Equator (Geostationary), or in Low Earth Orbit (LEO) anywhere from 500 to 1,000 miles above the earth. Sat phones are rarely affected by violent storms and, depending upon their system architecture, work virtually anywhere in the world. The devices weigh a few ounces and may be about the same size as your cell phone.

    Traditional sat phones buyers are government and public safety agencies, energy companies, shippers, and search and rescue organizations. But an increasing number of private individuals are buying sat phones as an insurance policy against losing their capability to communicate with the world.

    While you may never have considered buying a sat-phone, you may change your mind after learning a few key facts, especially when you consider the drastic reduction in the cost of equipment and airtime that has occurred in the past few years.
    ….
    How to Select a Satellite Phone

    If you purchase a sat-phone, expect to spend between $600 and $1700, depending upon the network. All of the phones are lightweight, small, and replicate the functionality of your cellular telephone. Some have Bluetooth and WiFi capabilities so you can use a remote headset, and wirelessly connect your computer for data access.

    Satellite air time is not expensive in comparison to typical cellular roaming charges in foreign countries. This is especially important aboard a cruise ship where communications costs can be exorbitant. Read my article about the high cost of communicating at sea and how that is about to change.

    Airtime can be prepaid or obtained on a monthly service contract. Either pricing scheme can be very attractive and inexpensive in comparison to cellular roaming rates if you travel to Asia, Africa or South America, where calls can cost up to $6.00 per minute in some venues. The important thing to remember is that land-based cellular networks offer coverage anywhere there are population centers or routes. In contrast, satellite networks offer global service and do not require towers.

    Selection of a satellite handset should be based upon a number of technical and user-criteria. These include:

    Cost of handset
    Economics of use

    Airtime pricing plans, either prepaid or monthly postpaid, and rollover minutes, and the cost of calls to landline and other mobiles

    Ease of use
    Geographic coverage requirements: global or regional
    Where the phone will be used and special option and feature requirements such as GPS, phone tracking, GPS location transmission, and panic alarm
    Bluetooth and WiFi capabilities
    Ruggedness and compliance with military specification
    Data capabilities including email, text, and messaging
    ….
    Satellite phones v. Cell Phones

    All satellite phones have a number of common characteristics that you need to be aware of in order to select the one that will work the best for you. The most important point to understand is that sat-phones are not cell phones, and they work on an entirely different network architecture and radio propagation characteristics. There are certain inherent limitations as to how they operate, and where. While a satellite phone will work just about anywhere in the world, they will normally not work inside of buildings or any kind of structure that blocks their view of the horizon. There is no equivalent to Blackberries or iPhones in the satellite world and they will never replace cell phones but are a good insurance policy against the failure of cellular networks.

    Antennas: Their antennas are external, not internal, which means they must be extended to function properly, both to send and receive calls. The phones generally will not work if the antennas are retracted because of the way radio waves are propagated, and the frequencies that are used. So, you cannot walk around with a sat-phone in your back pocket and expect to reliably receive phone calls.

    International phone numbers: Satellite phones generally have special international numbers, although some, like Globalstar, also have U.S. and Canadian numbers assigned. Most of the companies have what is called Direct Inward Dial capability, which means that you can get a U.S. number to call, then overdial (using touch tone) the actual number assigned to the handset.

    Calls to these phones can be very expensive from the public network, up to ten dollars a minute, depending upon the carrier and pricing plan. If you intend to receive calls on your satellite phone, be sure to select a carrier that has Direct Inward Dial, or overdial capabilities.

    Global coverage: While some of the satellite carriers provide global coverage, it is not absolute. Depending on where you are located there may be dead spots. This is a function of your surroundings, foliage and trees (like in a jungle), high buildings, mountain ranges or other obstructions. It is also dependent on how the satellite constellation is designed. Inmarsat does not adequately cover the North and South Pole, while Iridium does. See my interview with Pierre-Paul Tengwo, a Senior Supervisor at Inmarsat Operations Center in London for a description of their network and how they can dynamically optimize it for specific communications requirements.

    Voice quality: The voice quality on many of the networks may be a lot lower than what you are used to with cellular. That is because the bandwidth is severely limited to optimize power requirements. There may also be a delay, called latency, between when you talk and the other party talks. This can happen when you are talking through a system that has satellites in geostationary orbit, like Inmarsat.

    Handset design: All of the sat-phones are small and lightweight, some not much larger than cellular handsets. While they all function similarly to your cell phone, there are design differences in terms of antennas, displays, soft buttons and options. Inmarsat probably offers the least expensive and easiest to use phone, but it does not have certain options that Iridium provides, including truly global coverage. All of the systems, regardless of handset, now optimize the connection between you and the satellite by determining your exact position using GPS.

    Email and Text: All phones offer text messages, and most will also allow sending and receiving of email. In that regard they offer almost the same service as your cell phone.

    That’s a good place to start.

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  14. InformedaboutCable

    Oceanic can lower or raise their prices but they still have you sharing the same line with 300-400 other customers so you are affected EVERY time someone else uses their TV or internet at THEIR home. Thats why they cant keep their speed consistant, you get blackouts, the circle on your screen with internet, internet slowing down when your OWN tv is on, tv channels pausing after you push the button then changes channel ans freezing of the tv in general. At least with Hawaiian Telcom you get a dedicated line that shares with no one else, all digital channels, MUCH faster speeds in Fiber areas (500mbps) and the TV picture doesnt look all fuzzy like Oceanic. Oh yeah Tv channels are instant…no waiting. Overall its a much higher quality on the newly upgraded areas. The older stuff of Hawaiian Telcom, well its not so good…but the company IS in the process of making the whole island FIBER. Oceanic cant compete. Oceanic is old product…. old story.

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