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@Home Network Approaching Shutdown
David Harris writes: "A bankruptcy court ruled today that the @Home network will be shutdown at midnight, unless the company reaches new deals with its cable partners and creditors. The decision is a victory for bondholders, owed $750 million by Excite@Home, whose motion asked the court to shutdown the network on grounds that AT&T's $307 million offer to acquire @Home's broadband network is not adequate and fair value for the network could only be found if a shutdown was forced." Read about it on excite.com, while you can. CNet has a good analysis of where things stand. 45% of the cable modem users in North America! Ouch.
I do feel bad because I have a lot of friends who don't have land-based phone lines anymore. They switched to cable for the computer and cell phones for phone use. If their service lapses, they're going to be SOL.
I don't see any reason why Excite won't kill the service tonight. They've got nothing to lose, since they're already bankrupt. Shutting off service just stems the bleeding. The other companies are going to get hurt by this, and it's going to put high-speed internet access in a bad light.
But, I guess this is what happens when one company controls the lion's share of internet access. Back in the day of local ISP's, one of them going under wasn't the end of the world. Can you imagine what would happen if AOL or MSN turned off their service? (and yes, I'm bloody well expecting a smartaleck response there).
I'm just glad I never got rid of my dial up access. I have the feeling my friends are going to be coming over to get their net fix during the outage.
Electronic Frontier Foundation for online civil rights information
Certainly they are not taking in the entire $39.95 each month. The local provider (Cox Cable in my town) obviously takes a portion of that montly bill, but Excite! must still be receiving a ton of money each month.
Moreover, they have a monopoly. In my neighborhood I don't have a choice between Cox and Roadrunner. It's either Cox@Home or a phone modem (we're too far away from the CO for DSL). So they can't be losing customers since there's no compitition. And even if their competition is DSL then their competitors are going out of business as well (whatever happened to Covad?)
Sombody's got to be taking some money home with them at night.
Let's draw an analogy between this and telephone service, or any other public utility (water, power, etc.). If 45 % of the country's telephone subscriber's were going to lose service, govt would be up in arms and rattling cages, dropping stiumlus packages left and right.
:)
Granted, bandwidth is not a crucial as say water, power, and heat, but to some businesses, it could be make or break. Scary...
Wonder how my EDonkey traffic will be this weekend?
45% of cablemodem users != 45% of users
Well, it's definitely a bad move for the consumer, but it's pretty clear that the consumer hasn't been an especially high priority in the broadband industry for a while now. It's fairly telling when the cable companies are the customer service leaders.
I think occasional massive hiccups like this (and the Northpoint DSL debacle that preceded it) are part of the price of an unregulated industry. We'd see this same kind of brinksmanship and the same sort of politically or financially motivated service outages from our telephone service providers were it not for regulations mandating a scheme of interconnection and settlement fees. But does anyone really want that same sort of regulatory scheme for broadband? I might change my mind later, but it seems like the occasional outage like this one might be the lesser of two pretty big evils.
Seems to me the bondholders are the ones playing chicken. I don't get it: "The network is worth more than you're offering. Pay us more or at midnight the network goes down!" "OK, fine, shut it down; then the network will be worth zero." Seems to me the bondholders made a bad investment and are trying to get their money back. That's the risk they took; they should be big boys and take their lumps, like everyone else who lost on the .com bubble burst. 30 cents on the dollar is better than nothing.
Funny how not too long ago the cable companies said they couldn't possibly allow competition, that @Home was the only game allowed. Too bad they didn't listen to us customers and allow us to choose our own ISP.
If all this should have a reason, we would be the last to know.
DSL - tried to get it a year ago, and I'm just a bit too far away from the CO to get service. It will probably take 3 visits and 3 mornings off of work to verify that I can't get DSL - and even then, I'll never have official word, just the hearsay from a disgruntled tech.
802.11b wireless - Several providers? What part of the country is that again? Here in my corner of the midwest, there are a few less options.
Satellite - "Games are wasteful of valuable bandwidthm especially given the current shortage". Guess us gamers should go the e-ghetto where we belong...
T1 - This would be a great option if a) I had the expertise to set this up in a timely manner b) I had the capital to pay for the initial equipment c) I knew ANY neighbors in a mile radius that would pay for a connection and the 802.11b equipment. Sorry, it's not really viable right now.
Dialup. See Satellite.
Sorry. I got a cable modem because I like an always on connection, and I really enjoy online games. I kept it because it really enhances the online gaming experience, even on my (comparatively) slow machine, and it helps facilitate my new linux habit (45 minutes to download an ISO image from a public server).
But hey, thanks for making me feel like an idiot for going for the fast, easy, cheap option and not investigating the other lame-ass offers in town.
Cable modems via Cox came to the neighborhood back in August and I quickly signed up and I believe I have a final payment to make on the cable modem purchased.
I just shut off my 2nd line and dial up provider - now it seems that may have been a rash move. Cox has a info page up saying they're going to "negotiate into the night" to set up a stopgap arrangement to keep us online, but I'm pessimistic as it seems that outside of a ridiculous amount of loot deposited to Excite, there's not a lot of incentive to be agreeable.
The judge's commentary really irks me. Yes, for many, the net is not a necessity. But for people like me who rely on it for work and my wife who needs access for school, it is a utility on par with the phones and electricity. It seems that the customer counts last - do these idiots (Excite creditors) think they'll get any more money if there is any lengthy service disruption? I suppose many of us have to take without viable alternatives - here, no DSL is available and the other alternatives (Sprint Broadband, satellite) are unreliable and unsuitable for games and conferencing (according to their own sales brochure material that caused me to cancel an order for those services) - DSL and cable modems (outside of a T1 line) are the only viable options for the home user.
AZspot
Well, that's over 4 million subscribers -- $1.50 per subscriber per week. Would the subscribers not be willing to absorb a price increase of what amounts to a cup of coffee per week to keep their cable modem service? And any more than that, say $2.00 per week, would be a $100 million per year profit. Sure you might lose a few but most would probably pay -- I mean what's the alternative?
actually, this isn't quite true. while the excite@home is the parent company of the @home network, that does not mean that when excite@home goes down that all of at&t's network will go down. they have been planning for this in the event that they were not able to buy excite's network, which now seems to be a likely situation. so while they have been trying to buy @home, and sell their cable, they have also been building their own network. this is no guarantee that the service will not go down, but they claim they have some areas ready for their new service.
"It is a greater offense to steal men's labor, than their clothes"
B seems like it would be simpler, but...
Honestly, if the phone and cable companies hadn't been in competition with their own customers I think all of this wouldn't have happened.
Of course, even then it requires the government to regulate that the phone and cable companies can't sell both the lines and the service as that would be a monopoly.
As far as phone and power utilities plunging... Yikes... It's not an impossibility!
The man who trades freedom for security does not deserve nor will he ever receive either. - Benjamin Franklin
My latest Email:
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/.
Dear Cox @ Home Customer:
As you know from our previous emails, Excite @ Home, our vendor in delivering
your Cox @ Home service, filed for Chapter 11 Bankruptcy protection at the end
of September. We have endeavored to keep you informed of the potential impact
this Bankruptcy could have on your Cox @ Home service and are writing to you
today to provide the latest information we have available.
First, we want you to know that we are committed to providing you uninterrupted
high speed Internet service. Cox Communications has been working diligently in
negotiations with Excite @ Home and using all legal avenues available to protect
you, our valued customer. Meanwhile, we have been forging ahead with our
plans to deliver reliable high speed Internet service to you on our Cox-managed
network. You will soon be receiving additional information about our new Cox
High Speed Internet(sm) service, along with information to help you convert to this
new service.
The latest developments with Excite @ Home:
This month, Excite @ Home's creditors petitioned the Bankruptcy court with a
motion to allow Excite @ Home to terminate service agreements with its cable
affiliates on November 30th. This includes agreements with Cox, Comcast and
AT&T. If the Court grants the creditors' request, there conceivably could be a
temporary disruption in the services that Excite @ Home provides to
approximately 3.7 million customers served by its North American cable affiliates.
We are doing everything possible to see that there will not be a disruption in your
service, but also want you to understand the possibilities and to be prepared:
*If the Judge's ruling states that Excite @ Home may terminate its service
agreements with Cox and the other cable affiliates, this does not mean that
Excite @ Home will automatically turn off the service on November 30th.
*With the Judge's approval, Excite @ Home would then have the ability to make
a decision on termination; however, we are negotiating with them to prevent any
service disruption.
*If Excite @ Home decides to terminate service despite our efforts to negotiate a
temporary arrangement, the question remains as to when the service would be
terminated. We are doing everything we can to ensure that your Cox @ Home
service continues until we can transition you to our new Cox-managed Internet
service. In short, we are doing our best to make sure that you will never be
without high speed Internet service.
Additional help Cox is providing:
In addition to exercising legal avenues, negotiating with Excite @ Home, and
building our own high speed Internet service, Cox is also offering the following to
help you and to keep you informed during this transitional period:
Toll Free Customer Information Line (1-877-832-4751). You can call in for
the latest updates as we work to quickly resolve any service issues.
Website Message Center at Cox.com/info
http://uuhttp.flonetwork.com/cgi-bin3/flo?y=eJI
We will provide online updates and a "Frequently Asked Questions" (FAQ) section to
address your concerns.
Automatic Account Credits. We will credit your account automatically for
service and leased equipment so that you are reimbursed for any time you
are without service.
Free, temporary dial-up Internet access. In the unlikely event that you
should experience a service disruption, we have arranged for temporary
dial-up access to the Internet via NetZero(R). In order to take advantage of
this precautionary option, please see the "What Should I be Doing Right
Now" section that follows.
Cox has a long history of outstanding service in your community. We pride
ourselves on providing high quality products and the best customer service.
Please know that we are committed to our customers and understand the
extent to which you enjoy the services we provide. We recognize that you
have a choice in service providers and we will continue to do our best to
remain your choice now and in the future. In advance, we apologize for any
inconvenience that the Bankruptcy of our vendor Excite @ Home may cause
you.
Stay tuned for more details, and thank you for choosing Cox.
Sincerely,
The Cox High-Speed Internet Team
Cox Communications, Inc.
_______________________________
What Should I be Doing Right Now?
1. Check your Cox @ Home email daily. Opened messages will be saved
automatically to your hard drive.
2. Download free dial-up Internet software. In the unlikely event that Excite
@ Home terminates your service, you would lose connectivity to the Internet and
access to your Cox @ Home services such as email and webspace. We do not
recommend that you install the software at this time, just download the software
and save it so that it may be installed should you have an interruption in service.
In order to restore access to the Internet and to set up a temporary email
address, we recommend that you register for dial-up service via NetZero and
download the necessary software. You will not be able to download the software
from your home after your Internet service has already been disrupted. While a
free dial-up connection is not ideal, it will give you temporary access to the
Internet for surfing, making transactions, etc. However, you will not be able to
access your Cox @ Home email accounts while the service is shut down. For
information on how to download this software, please visit Cox.com/info
http://uuhttp.flonetwork.com/cgi-bin3/flo?y=eJI
3. Back up your personal web page to your hard drive or to a CD. (This is a
good precautionary measure to follow at any time.)
4. In the unlikely event that there is a disruption in service, keep your cable
modem connected to your PC until service is restored.
5. Watch for more information from Cox on the transition of your service to
Cox High Speed Internet. At such time that you can make the transition to our
new service, Cox will be providing you with all of the information you need to make
your transition as smooth as possible.
I'm digging out my external modem as we speak. I hope they figure this out, because I do not know what I will do without my cable modem and
Mo Bandwidth. Mo Problems.
I hate sigs.
Doesn't sound like anything that a nice iptables rule that checks for their port scanner subnet and responds with a "-J REJECT -reject-with tcp-reset" wouldn't solve! :-)
Do the math. Something's not right here.
$16 per month x 4.1 million customers = $787,200,000 per year.
Jeezus F'ing Christ!!! 787 MILLION dollars a year and they are losing money?????? WTF is going on here???
And they claim to be losing 6 Million dollars a week. 6 Million divided by 4 million customers = $1.50 a week. $1.50 x 4 = $6. A $6 per month rate increase would take care of that. How many people would give up cable and switch to DSL or go back to dial-up over $6? Not very many.
They'll just move. They always do. And it's not fucking fair to those of us that don't spam.
I don't know. We've kind of become conditioned to think of government regulation as evil until proven otherwise, but as a former telco guy (I worked at Intermedia Communications, now a part of BorgCom, for five years), there are two things I'd observe:
Honestly, I think "as little regulation as necessary to work" is a laudable goal in nearly any case--but sometimes a little regulation makes the market work better. If cable companies were forced to open their data lines to any local ISPs willing to pay reasonable rates ("reasonable" being roughly defined as "a price which still lets them be competitive with an ISP owned by the cable company itself"), I suspect it would be much better for consumers, better for competing ISPs--and probably ultimately better for cable companies, too.
- The "Excite!" portal, and
- The bond payments
However, by shutting the network down they've just destroyed its value. I'll probably be down tomorrow, and if so, I will swiftly arrange for an alternative arrangement on Monday and never return to @Home.-E
Send mail here if you want to reach me.
Just trying to update folks with the situation here ... while the Comcast page isn't yet providing any new information, I *can* say that at least it's 1:30 (an hour and a half after the theoretical time of the potential shutdown) and my Comcast@Home service in MD is still working. Maybe there's hope ... maybe not.
P.S. - For the people above who have said "Good riddance to @Home users" because, variously, that @Home subscribers are all spammers and/or cl00bi3 Windows users infected with Nimda, I just need to say - I apologize for the language and, I'm sure this will get me furiously modded down but I have to say it - f**k you.
I'm a Mac and BSD user. I don't spam. This is my home Internet connection, and I depend on it. Remind me to, when someday your ISP may cut you off for some reason through no fault of your own, say "good riddance" snidely as well.
"95% of all Slashdot
actually, if you read the entire article, it sounds to me as if they just negotiated really poor contracts. there's a ton of profit being made, just not by @home, instead it's being made by AT&T. the article mentioned that 80% of the profits are going to people other than @home for their hardware.
just declare bankruptcy, null your former contracts and renegotiate so that they make you money this time around.