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$5,000 fee for cable installation keeps worker from telecommuting

By CATHY WOODRUFF THE ADVOCATE
First published in print: Thursday, September 3, 2009

Rachel Warnke was overjoyed when she was learned she could work from her rural Duanesburg home.

     
With three children, a husband and an elderly parent in the household, the idea of eliminating a 40-minute daily commute each way to her job as a customer service representative at Empire Blue Cross-Blue Shield in Albany was more-than appealing. It sounded like the answer to a busy mother's prayer.

Not-so-appealing was the hefty price of installing the Time Warner Cable Internet service she needs to comply with the technical and security requirements of Empire's information systems.

Even though a cable line runs right past her address on Eaton Corners Road (Route 30) in the country town, Time Warner told her the cost of running a line down the long driveway leading to her house would exceed $5,000.

If the residents of two other homes on the 0.4-mile driveway also decide to buy cable service, which, at this point, they have not, Warnke and her neighbors can have the service installed for $1,700 each.

That still didn't sound like much of a bargain. If Warnke lived on almost any street in Niskayuna or Schenectady or another more-densely populated part of Schenectady County, there would be little or no cost to run the lines to her house.

"Why is it so expensive?" she wondered. "I already have other wires coming up my driveway."

At one point, she even saved $3,000 toward the down-payment Time Warner demanded but had to spend it to replace her car last spring.

Empire pays the monthly Internet service cost of work-at-home employees, and the company has many workers who do their jobs from home, spokesman Craig Andrews said. But the authorization is contingent on the availability of high-speed, private Internet access that meets the company's security requirements.

Time Warner answered Warnke's inquiries with a copy of the formula they use to calculate charges for installation of cable lines. I don't think I've seen anything like it since I struggled through high school algebra.

Time Warner spokesman Peter Taubkin assured me it's all in line with state regulations on what cable providers can charge.

Anne Dalton, spokeswoman for the Public Service Commission, confirmed that the formula and the installation cost estimated by Time Warner seemed appropriate ­-- at least under the state's rules for cable television lines. But Dalton also noted Internet service is not regulated as a utility.

Under Time Warner's franchise agreement with the Town of Duanesburg, the company must provide service in areas with a home density of 20 per mile, which is better than the state requirement of 35 homes per mile, Taubkin noted. In Warnke's case, Time Warner counts the three houses on her driveway to compute a 7.3-homes-per-mile density.

Time Warner has about 700 customers in the town, Taubkin said, but he wouldn't say how many customers there are on Eaton Corners Road -- Warnke's actual address ­-- citing privacy concerns......................>>>>.........................>>>>....................http://www.timesunion.com/AspStories/story.asp?storyID=837887