OpenBand Plays the Victim at Board Hearing

To hear OpenBand Communication’s representative put it, one would expect to walk into any home of a community it serves and find the latest video technology available as part of a federally protected plan to provide better television services to residents.

In addition, the company has portrayed itself as the victim of its own customers, who don’t understand what great service and low prices they have.

But residents who have come out to hearings on multiple occasions to voice their concerns, are the ones claiming to be held hostage under a scheme they say provides substandard service and no options, other than to pay for a second service.

The comments came during Tuesday’s public hearing in which the Loudoun Board of Supervisors deferred the decision on renewing OpenBand’s franchise agreement in Loudoun. The company has been operating beyond its initial franchise deadline for more than two years.

OpenBand spokesman Ben Young told the Loudoun Board of Supervisors that his company had conceded most demands made in the franchise renewal, but could not agree to allow termination based on potential lawsuits that could be filed. In addition, he said the company could not agree to the shortened term, which would bring renewal back to the board in about two years.

“We’ve conceded every reasonable request the county’s made,” he said. “The only issue we’ve held our ground on is that of the term.”

Despite Young’s assertions, the homeowners associations of three of the communities in Loudoun served by OpenBand are suing the company and the Loudoun board has called on the Virginia Attorney General’s office to investigate OpenBand for possible antitrust violations.

“We believe that as the county’s own date shows that we are a quality company and we do provide a quality product for the lowest price,” Young said. “I disagree that all our customers are unhappy. We believe that’s what’s happening is there’s been a small group that’s been very vocal and very virulent in their criticism and that has affected the process.”

Supervisor Stevens Miller said Young made the service sound so great that he wondered why there were concerns about competing with local cable service providers.

“If it’s true, why not open yourselves up to competition in the free market place and allow it to prove itself?” Miller asked.

Johnson said because OpenBand is a Open Video Service, there are special rules protecting it from large competitors who seek to put the company out of business.

“And they would do that, not to spread access or to piggyback on a business,” Young explained. “They do that to put you out of business so that you would never become a competitor.”

The HOA lawsuits stem from fact that the communities of Southern Walk at Broadlands, Lansdowne on the Potomac and Lansdowne Village Greens are locked into contracts with OpenBand for up to 65 years at the company’s discretion and that the community developers own easements that prevent cable companies from entering the communities. The contracts and easements were set in place while the respective developers controlled the HOA boards. After several residents experienced poor service and what they deemed to be inadequate responses, the community boards investigated and took action. Southern Walk has led the fight.

Resident who opt to install satellite service at their homes must still pay OpenBand’s fees.

“I understand that no cable provider would agree to the franchise under the terms we’ve recommended,” Miller said. “I don’t see any customer that would agree to the contract that you’ve put on these people.”

Young again said that he believed most customers were happy with the service.

All but one of 17 speakers during Tuesday’s public hearing said they experienced poor service from OpenBand, and the one who did not said he wanted options without having to pay for double service.

All speakers were from Southern Walk, including HOA board members who appeared disgusted with OpenBand’s stance. There appeared to be some question about whether residents would lose their video service for at least a short time.

“The HOA’s position is simple,” said Erika Hodell Cotti, president of the Southern Walk HOA. “Let OpenBand pull the plug.”

Without knowing more about the position of other HOAs, supervisors wanted more time to determine whether denying the application would best serve the communities. But Southern Walk residents were clear about their feelings.

“What we need is for the county to deny OpenBand’s franchise agreement,” said Southern Walk HOA board treasurer Doug Granzow. “Nobody is claiming this will be the silver bullet, but it’s a necessary first step.”

Some speakers said they would be OK not having video service for a time as long as they gain options in the end. Among the concerns raised by residents is the lack of advanced technology at the company.

While, as Young pointed out, OpenBand offered the first “triple play” service in the county, in which customers could obtain video, telephone and Internet service bundled together, residents said other cable providers in the area have since leaped beyond OpenBand’s capabilities. Young said OpenBand is constantly working to improve its technology and had new offerings in the works.

Another concern raised by homeowners involved property values. Claims have been made that the OpenBand situation drives potential buyers away, or lowers the home’s value considerably.

Miller asked supervisors to go ahead and deny the franchise Tuesday night, but only Supervisor Andrea McGimsey (D-Potomac) supported him. The majority wanted to know more about what the denial would mean for all communities involved.

“It’s clear to me. I’m hearing from the community they don’t like your service. They don’t want it and they want out,” she said. “I do not understand why your company continues down this path.”

The board forwarded the item to a meeting just before the November election.

[Correction: Ben Young is the representative for OpenBand, not Ben Johnson. Patch apologizes for the error.]