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Why Americans Loathe Cable Companies
HughPickens.com writes: Vikas Bajaj writes in the NYT that the results are in and the American Customer Satisfaction Index shows that customer satisfaction with cable TV, Internet and phone service providers have declined to a seven-year low. Of the 43 industries on which the survey solicits opinions, TV and Internet companies tied for last place in customer satisfaction. "Internet and TV have always been among the lowest scoring," says David VanAmburg, director of the Index. "But this year they're at the very bottom." The study, which is based on more than 14,000 consumer surveys, gives companies a rating from 0 to 100. The ACSI reports huge drops in customer satisfaction for Comcast and Time Warner Cable, following their failed merger. Already one of the lowest-scoring companies in the ACSI, Comcast sheds 10 percent to a customer satisfaction score of 54. Meanwhile, Time Warner Cable earns the distinction as least-satisfying company in the Index after falling 9 percent to 51. Joining Time Warner Cable in the basement is ACSI newcomer Mediacom Communications (51), which serves smaller markets in the Midwest and South. "Customer service in these industries has long been bad," says VanAmburg of Internet and TV providers. "They don't have a good business model for handling inquiries with efficiency and respect. It goes back a decade plus."
Even though those complaints are longstanding, customer frustration has risen along with the ever-rising prices. "You compound all that with the prices customers are paying, and that's the final straw," says VanAmburg. "They're opening bills each month and saying 'I'm paying how much?'" In an age of over-the-top viewing options like Hulu and Netflix, customer dissatisfaction may increasingly translate to companies' bottom lines. "There was a time when pay TV could get away with discontented users without being penalized by revenue losses from defecting customers," says Claes Fornell, chairman and founder of the Index. "But those days are over."
Even though those complaints are longstanding, customer frustration has risen along with the ever-rising prices. "You compound all that with the prices customers are paying, and that's the final straw," says VanAmburg. "They're opening bills each month and saying 'I'm paying how much?'" In an age of over-the-top viewing options like Hulu and Netflix, customer dissatisfaction may increasingly translate to companies' bottom lines. "There was a time when pay TV could get away with discontented users without being penalized by revenue losses from defecting customers," says Claes Fornell, chairman and founder of the Index. "But those days are over."
The major source of frustration is tied to the lack of compatition. Most areas I know have little option to leave their cable contract because the industry has made sure there are no competing services that would spur their customer service into actually playing nice to retain their customers. They know that they don't need to care because all other options have reduced quality. I for one have no options other than pulling the plug to go with multiple antennas for terestrial broadcasts from 40 miles away, or satellite. No real internet options. The 'last mile' predicament leaves me wondering how much Comcast actually pays to keep the compatition out of my community. Any mergers will only make their position stronger so they can afford to raise prices even more as they reduce what channels I get on my plan. I currentlt have less than half tha channels that I had with Adelphia before that merger, and what I have left is mostly junk other than PBS where there is actually more selection through terestrial.
Except that the city having Google Fiber isn't every house having access. Google announced that Google Fiber was coming to certain neighborhoods in Atlanta. Guess what, AT&T and Comcast both announced new faster speeds for less money! But only in the same neighborhoods that are getting access to Google Fiber. It's obvious they have the capability and would still make money, but have no incentive to unless someone comes into the market offering something better. And if they do up their speeds and lower their prices, they sure as hell aren't going to offer it to the poor bastards that don't have a choice.
Yes it's an anecdote! Were you expecting original research in a Slashdot comment?
As someone who has a choice of one cable provider (Brighthouse) or one telecom company (AT&T) I've been following fiber deployments fairly closely. There are a few companies deploying Google Fiber style networks in my state but they are moving slowly and not hitting my area any time soon. As such I contacted Google to ask if there was anything on the net to help interested communities build out their own networks. Within a few hours they got back to me with this: http://www.ftthcouncil.org/ While Cable and Telecom companies continually try to stamp out such efforts there are a number that have gone through. If we can get more communities on this bandwagon it would help make them harder to stop. Head to the page, share the information, and start evangelizing in your area.
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Muni broadband does take money, but it brings benefits. Just look at South Korea. See the NY Times story on "what silicon valley can learn from seoul." http://www.nytimes.com/2015/06....