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Time Warner Cable CEO: We're Like the Mercedes of Cable

Most broadband customers would probably agree that US broadband isn't very competitive. In most markets (if they're "lucky") users usually have the choice of a phone company that isn't willing to upgrade DSL to fiber, and a local cable monopoly with a history of absolutely atrocious customer service. The combination usually leads to duopoly scenarios where both sides race to raise rates while pretending to be innovative.

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According to Time Warner Cable CEO Rob Marcus however, the U.S. broadband market is incredibly competitive.

"There continues to be this perception that it is not a competitive market; that the market is not somehow working," Marcus says in an interview with Multichannel News. "Living in the world we do every day, competing for customers, that couldn’t be further from the truth. The best governor of pricing is an effective marketplace and we live in that world every day."

Except the US pays some of the highest rates for broadband of any developed nation (OECD data), and several surveys have shown that Time Warner Cable is the least liked company in America. That's no easy feat, and it's thanks largely to the fact that Time Warner Cable has little competitive incentive to improve in most regions.

How does Marcus -- who stands to personally make $97 million from the Charter merger -- reconcile his reality with the reality of most of his customers? Via intense, sustained hallucination, apparently.

"Affordability is always going to be an issue for our products and for other products," admits Marcus. "That’s why we try to be creative about having offerings that are designed for folks who are on a tighter budget."

Except like most cable and phone companies, Time Warner Cable doesn't actually do that. They do pay lip service every six months or so to lower-cost broadband and television options, but that's not quite the same thing as actually offering them. The only pricing "creativity" found is usually in the form of new fees.

Marcus then proceeds to imply that the quality of service users receive from Time Warner Cable is so high, they price these premium services accordingly. You know, like Mercedes Benz.

"It can’t be the case that you can get for the really low price all of the great attributes in the products that you can at the higher-end prices. There is always going to be the Hyundai and the Mercedes."

Based on his other comments, one can only imagine Marcus sees his company as the latter option. One wonders: does Mercedes have what several survey firms have found to be the worst customer service of any company in any US industry?

Most recommended from 47 comments


silverforte
join:2012-05-26
Kannapolis, NC

29 recommendations

silverforte

Member

Nope

Do Mercedes frequently break down, disallow you to go faster than 20 mph or have one or two wheels randomly not spin? If so, sure.

Flyonthewall
@teksavvy.com

16 recommendations

Flyonthewall

Anon

My opinion

No one under the age of 65 should be able to make the kind of money these jokers do without doing something that is morally questionable, at best. Unless you're a Doctor saving lives or a Fireman saving lives (excuse the non-political correct terms, they belong on a different planet), or you assist in saving lives, you aren't worth that money at all, no matter how flexible your mental gymnastic routine is in your own mind. Your self worth has to be really out of sync with the rest of the world to believe, really believe, you are worth millions in compensation for what is arguably a very small contribution to society.

The only people justified in making millions are the odd sucker who wins a lottery that millions of people contributed to. But at least those people only have to donate a few bucks, not hours upon hours of labor in exchange for a pittance that pays for guys like this to make millions.

maartena
Elmo
Premium Member
join:2002-05-10
Orange, CA

14 recommendations

maartena

Premium Member

The Mercedes of Cable...

Only $19.95 per month to lease a Mercedes!!

but....

$4.00 "Steering Wheel Surcharge". - Because the manufacturer of steering wheels keeps raising their prices.
$4.00 "Brake Pedal Surcharge". - Because the manufacturer of brake pedals keeps raising their prices.
$2.00 "Seat belt "Recovery" Fee. - Because the state law mandates Seat belts, we HAVE to charge you this fee.
$6.00 "Tire Lease". (comes with all 4 tires).
$6.00 "Per-Chair Lease". If you want to use more than 1 chair, please pay $6.00 per chair per month.
( --- Optional: $2.00 "Stool" lease, for if you don't need a full-fledged chair.)
$10.00 "Unlimited Use Fee*". Normally, you will have to use your Mercedes on OUR schedule. Destinations are listed in the handy "on screen guide" inside your Mercedes. The "Unlimited Use Fee" will install a "DVR" device in your Mercedes that will allow you to use pre-recorded destinations at a later time.

* "Unlimited" does not actually mean you can use it unlimited. Please see our microscopically small fine print for which you need an electron microscope to read.

Of course there are some Premium lease options such as "HBO Air-conditioning" and "Showtime Tainted Glass" that are not mandatory to use your vehicle.

And no, even though you have bought your own "Broadcast 3000" Steering wheel model that is fully compatible with the steering wheel column you wish to put it on, we still have to charge you the monthly "Steering Wheel Surcharge" fee, we cannot lease the Mercedes to you without it.

Zenit_IIfx
The system is the solution
Premium Member
join:2012-05-07
Purcellville, VA
·Comcast XFINITY

7 recommendations

Zenit_IIfx

Premium Member

Let me fix that for you Marcus!

"We're like the Lada of Cable"


ctaranto
join:2011-12-14
MA

4 recommendations

ctaranto

Member

Hyundai?

As a Hyundai Genesis owner, I truly take offense with what this simpleton is implying.

Though I do appreciate Robby not coming to my town.