Cable Wars: Charter and Direct TV Duke it Out

March 20, 2002

When the titans clash, the little people stand to benefit as the giants rain their goodies on the masses in hopes of gaining their favor.
Such may be the case in the current battle between Charter Communications, which provides cable and internet service throughout the region, and Direct TV, the satellite dish outfit.
Unless you got locked in your ice fishing shanty all winter, you‘ve probably noticed Charter‘s blitz of commercials which warn of the evils of satellite TV. The most memorable is the one where irate customers are tossing their satellite dishes out their windows in a huge pile where they are gobbled up for the dump by a giant crane.
The kicker is a message that strikes fear in the heart of any boob-tube addict: Charter claims that cloudy days can mess with your satellite TV signal.
Talk about terrorism.
One side effect of these commercials is to get us thinking that the alternative must be pretty darned good to have Charter in such an uproar.
Nor is Direct TV taking the attack ads lying down.
“Charter is running those ads because they‘re worried that people are going to switch to satellite when the price of cable goes up,“ says a Direct TV rep in Mt. Pleasant.
Direct TV is fighting back in an area that really hurts: price.
Currently, Direct TV is offering free installation for a satellite dish along with 100 channels for $34.99 per month. That includes seven HBO and three Cinemax channels along with four free Starz channels for a three-month period. Afterwards, HBO/Cinemax and the 100 channels are $49 per month. And one extra TV hookup is just $4.99.
You might want to point this out to Charter the next time you pay your cable bill.
But what about those dreaded cloudy days?
“You get about as much disruption with satellite as you do with cable,“ says the Direct TV guy. “I‘ve had cable that‘s gone out and no one has been able to figure out why. If it‘s an extremely cloudy day, it may disrupt your signal somewhat, but that‘s only if there‘s a major storm.“
A friend who‘s had Direct TV for eight months agrees with this assessment. His satellite TV went on the blink once during an ice storm; otherwise there‘s been no problem.
The big exception for Direct TV users is they‘re unable to receive area stations such as Fox 3, 7&4, 9&10 and local PBS without the installation of an antenna.
Personally, I have no complaint with Charter‘s cable TV, and their internet service is great; but I wouldn‘t want to see them become a monopoly.
The brief history of cable television has illustrated terrible problems with service, programming and cost in cities where cable has become a monopoly with no chance of changing to another provider.
The City of Detroit is a current case in point, where the Metro Times reports “horrendous customer service and antiquated technology“ for customers of Comcast Cable Communications, the self-proclaimed most profitable cable company in the world. Comcast has a monopoly on Detroit because it agreed to fulfill an ordinance requiring any cable provider to service the entire 130-plus square miles of the city. Complaints are up 40% this year, and they were high to begin with.
Do we want a similar cable monopoly in Northern Michigan? No thanks.
Nor are there any reasons to have a case of the warm fuzzies for Charter, even if it does have a local office. Not when you can easily pay upwards of $900 per year for a combination cable TV/internet package.
Headquartered in St. Louis, MO, Charter Communications has some 7 million customers in 40 states. A current emphasis is on upgrading its broadband network to provide internet cable for its customers. Through 2002, Charter is investing $3.5 billion in this network.
That‘s great, and Charter should be applauded for its forward thinking. But it‘s also great that we have competition in the form of Direct TV to keep this 40-state giant on its toes and playing nice with price of service.
And it‘s even better news that Wireless First, a Traverse City-based internet company, is launching a new home product which will give you wireless broadband internet service.
That kind of competition is good news all around: better service, lower prices, happier customers and a steady hand on the channel changer.
Now if they could only improve the TV shows.