Time Warner working to keep cable theft in check

CNY Business Journal (1996+), Oct 12, 2001 by Dickinson, Casey J

SYRACUSE - Cable thieves' boasts may send them into federal court, facing thousands of dollars in legal liability, says Gary Corbett, senior director of security for Time Warner Cable in Syracuse. Corbett's signal-security unit tracks down cable thieves and forces them to pay up, sometimes filing federal civil lawsuits to recover lost revenues. Prior to joining Time Warner, he spent 23 years with the New York State Police Bureau of Criminal Investigation.

"A lot of people don't realize we're very active," says Corbett.

Calls to the division's cable-theft hotline have generated more than 700 investigation leads so far this year. Many of the calls, says Corbett, come from honest citizens appalled by boastful thieves who like to show off their illegal cable descramblers. The cable boxes, found on the Internet or in the backs of magazines, allow thieves to view premium and pay-per-view channels without paying.

"Most cable customers are honest," says Corbet," and they're irritated by theft."

When federal officials build a case against a company that produces illegal cable descramblers, the court records provide the National Cable Television Association (NCTA), the cable-industry trade group, with lists of where the boxes were shipped. Each member cable company then receives information about purchasers in its area.

From these lists, says Corbett, Time Warner can cross-check the time a customer purchased an illegal descrambler against a downgrade in service. A federal civil court case based on the records and other evidence can have thieves facing a $10,000 penalty and the cost of service stolen since they began using the descrambler.

Other tips come from customers whose signals have been disrupted by illegal cable connections. The damage caused by illegal line tapping can interfere with Road Runner high-speed Internet service as well as television. The company pursues criminal prosecutions as well as civil cases against line-tapping pirates.

Line tappers are often discovered during regular system audits, says Corbett. The company is required to ensure its system doesn't emit excess signals that could interfere with other communications. People who cut into cable lines or reconnect their cable television seldom possess the skill of Time Warner technicians, and the illegal connections stand out during a signal audit.

Audits of connections versus company records also reveal illegal connections, Corbett says.

Time Warner's new digital cable service is so far secure from pirates, says Corbett, though the company is constantly checking pirates' claims of having beaten the system's encryption. Digital cable's competition, home satellite, is plagued with piracy problems that allow many to steal its signals with impunity.

Time Warner divisions across the state, as well as competing companies, conduct joint investigations against big piracy operations that sell illegal boxes, says Corbett.

"They're very aggressive," he says, "so we have to be very aggressive about what we do."