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FCC’s Mike O’Rielly Tells ALEC FCC Should Ban State Laws on Broadband Privacy, Consumer Protection

O’Rielly

Republican FCC Commissioner Mike O’Rielly wants the FCC to prohibit states from attempting an end run around the current majority’s broad-based deregulation of ISPs, likening it to a war of socialist forces vs. free market capitalism.

Speaking at the American Legislative Exchange Council’s Spring Task Force Summit Annual Summit in Charlotte, N.C. on May 5, O’Rielly made it clear he intends to stop states from writing broadband privacy rules to replace those killed by the Republican majority in Congress and also wants to restrict states from enacting new rules impacting Voice over IP and broadband. O’Rielly told the audience he had already spoken to Chairman Ajit Pai about his ideas, potentially giving his agenda a majority vote on the Commission. Currently, the FCC has just three commissioners – Ajit Pai, Mike O’Rielly, and Democrat Mignon Clyburn.

In earlier remarks, Pai rejected allowing states to make their own decisions about broadband privacy policies.

“It is both impractical and very harmful for each state to enact differing and conflicting privacy burdens on broadband providers, many of which serve multiple states, if not the entire country,” said Pai. “If necessary, the FCC should be willing to issue the requisite decision to clarify the jurisdictional aspects of this issue.”

FCC action could potentially pre-empt any state laws from at least 10 states that have either passed ISP privacy laws or are planning to.

O’Rielly declared he intends to move broadband regulation away from the agenda favored by the Obama Administration’s FCC chairman Thomas Wheeler and return to hands-off policies allowing cable and phone companies to manage their businesses without government interference. O’Rielly told a cheering audience at the corporate-funded conference that under Chairman Pai’s watch, the FCC will return to “its previous approach to broadband that enabled staggering innovation, creativity, competition, disruption and consumer benefit.”

O’Rielly characterized groups fighting for consumer legislation banning zero rating/data caps, rate regulation, oversight, and consumer protection laws as part of a nefarious “progressive agenda to vanquish capitalism and economic liberty.” Like ALEC, O’Rielly claimed, the FCC has been unfairly attacked by progressive groups that call out both Chairman Pai’s agenda at the FCC and ALEC itself for ghostwritten legislation actually written by large corporate interests and passed for their welfare.

“Like ALEC, the new commission is facing its share of unwarranted and inappropriate criticism,” O’Rielly complained.

O’Rielly’s speech declared war on three hot issues broadband companies and consumers are concerned with: Net Neutrality, community-owned broadband networks, and state regulators seen as meddling with the free market.

  • Net Neutrality: “All of the propaganda in the world cannot paper over the fact that these new burdens were not in response to actual marketplace events but hypothetical concerns dreamed up by radical activists.”
  • Regulation of Voice over IP Phone Service in Minnesota to assure quality of service: “Such inappropriate jurisdictional overreaches by states should be nipped in the bud.”
  • Municipal Broadband: “It would be easy, as some have done, to blindly support any means necessary to get more and faster broadband to people they represent.”

O’Rielly sought a tighter partnership with ALEC to stop consumer groups from enacting new laws that protect an open internet:

“The members of ALEC can serve an important role as the new Commission seeks to restore free market principles to broadband offerings. Many of you know all too well of the pressure on us to buckle and acquiesce to the whims of the misinformed screaming for Net Neutrality. You likely face it at your respective statehouses as you debate the various matters before you. The ‘progressive agenda’ being pushed in so many settings is really an effort to use government as a means to redistribute hard earned assets from one group of people to favored interests. Do not let your voices go unheard as Net Neutrality advocates slowly, but surely, seek to drag the U.S. economy toward socialism.”

On municipal broadband, O’Rielly stretched his premise into a comparison of communities that want to have the ability to build their own networks with past offers of discounted heating oil from former Venezuelan dictator Hugo Chavez, suggesting good deeds on the surface may lead to unintended consequences later on.

Byron is on ALEC’s Communications and Technology Task Force

O’Rielly has also been infuriated with Minnesota’s Public Utilities Commission, which has been sparring with Charter Communications over its cable “digital phone” service in the U.S. District Court in St. Paul.

In March 2013, Charter Fiberlink Companies transferred 100,000 Minnesota customers to “an affiliate, Charter Advanced Services Companies, which provided VoIP phone service that was not certified” by the PUC, the Commerce Department said.

Better known as Spectrum Voice, Charter’s VoIP service had failed to collect any fees to support the state’s Telecommunications Access Minnesota program, which provides equipment for hearing-impaired and blind consumers who use the Minnesota Relay Service. Charter also refused to credit low-income consumers who would otherwise qualify for Lifeline phone service at discounted rates.

If the court determined VoIP was a “telecommunications service,” Minnesota regulators could force Charter to comply with state law. If determined to be an “information service,” federal rules exempting Charter would apply.

The week after O’Rielly delivered his speech a Minnesota federal charge ruled in favor of Charter and against the state regulator.

U.S. District Judge Susan Richard Nelson relied on arcane terminology that lets Charter avoid state regulation:

“The court agrees with Charter Advanced that Spectrum Voice engages in net protocol conversion, and that this feature renders it an ‘information service’ under applicable legal and administrative precedent,” according to the opinion. Although Judge Nelson agreed that “the frank purpose” behind Charter’s customer shuffling was to “limit the reach of state regulation, thereby enhancing Charter’s market competitiveness,” she said the service fit the qualifications of an information service.

“The touchstone of the information services inquiry is whether Spectrum Voice acts on the customer’s information — here a phone call — in such a way as to ‘transform’ that information,” the opinion said.

Regardless of the judge’s decision, O’Rielly wants to prevent a recurrence of state regulator interference in the cable industry’s phone business.

“The commission should have just declared VoIP to be an interstate information service,” O’Rielly told the audience. “Arguably, VoIP is just an application not even subject to FCC jurisdiction much less that of individual states.”

Charter Sending Techs to Customer Homes (Late) With No ID and No Idea

We’ve heard from several Los Angeles-area readers that Charter/Spectrum has dispatched third-party contractors to customer homes on service calls in plain clothing with no identification of any kind verifying who they are, and in several cases the “technicians” could not explain why they were there.

“This truck pulled up to my door and a man rang my bell to say he was from Spectrum and was there to replace a cable box,” said Stop the Cap! reader Wanda. “We had no idea who he was, he wasn’t in a cable company uniform, and he could not show me any identification showing who he was. We later learned he was some sort of contractor hired by Spectrum to handle service calls, but we did not let him in. I used to have Comcast back in Chicago and one of their technicians raped and murdered someone so I don’t open the door until I’m comfortable, and I wasn’t.”

One thing that hasn’t changed after Charter took over from Time Warner Cable for customer Todd Collins: his Charter technician arrived two hours late, also without a uniform, a truck with a Spectrum logo, or an ID badge. At least Collins knew why Charter was there — to install cable service in the new addition on his home.

“It was amazing to watch because it was a comedy of errors from start to finish,” Collins explained. “He brought the wrong paperwork, didn’t know what he was there to do, and had to make four phone calls to find someone at Charter to help. Two additional cable trucks eventually stopped by, so at least we knew we were dealing with Charter, and between the three technicians the work was grudgingly completed. We still don’t know how much Charter intends to charge us for this service and they admit they don’t know either.”

Charter also continues to attract complaints from customers about inconsistent information about its pricing and packages. One exasperated customer took to YouTube to declare Charter/Spectrum “thieves” for charging their notorious $199 upgrade charge when customers want broadband faster than the base 60 or 100Mbps package. In the video, the customer was originally quoted $100 to install and upgrade to 300Mbps Ultra service (Los Angeles was a Time Warner Cable Maxx city) which increased to $200 just a few weeks later. For that, the customer was told a technician would take up to two hours and install new lines and equipment. When the technician finally arrived (late), he spent about 15 minutes unwrapping and plugging in a replacement cable modem/router combo, and then left.

“I feel like I was just robbed $200,” the video blogger said.

“Our Ultra Internet unfortunately is $199,” a Charter representative said. “That’s just the installation charge. [The] activation fee is part of overall Ultra pricing and it covers higher network costs.”

Requests to reverse the fee, considering the 15-minutes spent plugging in a cable modem the customer could have accomplished himself were rejected. But because the cable technician was late, the customer got a one-time $20 service credit.

Stop the Cap! readers have had more success getting back the unnecessary and unconscionable $199 upgrade fee (or whatever else Charter calls it this week) by filing a complaint with the Federal Communications Commission.

An exasperated Spectrum customer in Los Angeles documents his displeasure with Charter’s prices, packages, and uniform-less technician. (7:32)

AT&T Uses Tax Dollars to Subsidize Expensive, Capped, and Slow Wireless Rural Broadband Solution

AT&T Fiber isn’t coming to rural communities and farms in the phone company’s service area anytime soon. Instead, AT&T grudgingly accepted $428 million in ratepayer-subsidized Connect America funds to build fixed wireless networks that do not meet the FCC’s minimum definition of broadband, come usage-capped, and will offer a price break only to customers who sign up for AT&T’s other services.

AT&T’s Fixed Wireless Internet service begins this week in Georgia, offering up to 10/1Mbps service with a monthly data cap of 160GB (additional 50GB increments cost $10 each). The monthly price is $70, or $60 with a one-year contract, or $50 if a customer has AT&T wireless phone service or DirecTV. The installation fee is $99, waived if you bundle with DirecTV. The fee covers the installation of an outdoor antenna and indoor residential gateway, which remains the property of AT&T. The service works over AT&T’s 4G LTE network. Credit approval is required, and those not approved may have to pay a refundable deposit to start service. These prices do not include taxes, federal and state universal service charges, regulatory cost recovery charges (up to $1.25), gross receipts surcharge, administrative fees and other assessments which are not government-required charges. See att.com/additionalcharges for details on fees & restrictions.

AT&T is using ratepayer funds to construct a sub-standard fixed wireless network that it will use to cross-sell its own products and services by offering customers a discount. The minimum speed to be considered “broadband” according to the FCC is not less than 25Mbps. But AT&T would have to spend considerably more to equip its wireless solution to work at those speeds, and the company has already admitted fixed wireless will be available in areas where it is “uneconomical to build wireline” networks, according to AT&T president of technology operations Bill Smith.

The new wireless network will be in service for 400,000 locations in Georgia by the end of this year, with 1.1 million locations up and running across 17 other states (Alabama, Arkansas, California, Florida, Illinois, Indiana, Kansas, Kentucky, Louisiana, Michigan, Mississippi, North Carolina, Ohio, South Carolina, Tennessee, Texas and Wisconsin) by 2020.

The buildout is required to meet the terms of the FCC’s Connect America Fund, which AT&T committed to in 2015.

Fixed wireless fits nicely with AT&T’s long-term strategy of mothballing its wireline networks in rural service areas, in favor of wireless alternatives. The company has been behind bills in more than a dozen state legislatures where it offers landline service to permanently disconnect rural customers from wired landline and broadband services.

“We’re committed to utilizing available technologies to connect hard-to-reach locations,” said Eric Boyer, senior vice president, wireless and wired product marketing at AT&T. Just as long as that technology isn’t fiber optics.

Questions and Answers About AT&T’s Fixed Wireless Internet

What is AT&T Fixed Wireless Internet?

AT&T Fixed Wireless Internet provides qualified households and small businesses with high-speed internet service via an outdoor antenna and indoor Wi-Fi Gateway router. AT&T Fixed Wireless Internet includes:

  • High-speed internet with download speeds of at least 10Mbps.
  • 160GB of internet usage per month. If you exceed the amount of data in your plan, additional data will automatically be provided in increments of 50GB for $10, up to a maximum of 20 such increments or $200
  • Wi-Fi connections for multiple devices (e.g. laptops, tablets, smartphones, gaming consoles, etc.).
  • Wired Ethernet connections for up to 4 devices.

What speed does AT&T Fixed Wireless Internet provide?

AT&T Fixed Wireless Internet will provide speeds of at least 10Mbps for downloading and at least 1Mbps for uploading. However, data speeds can vary depending upon various factors:

  • Wi-Fi isn’t as fast as a wired connection. You get the best Wi-Fi signal closest to your gateway without obstructions. Use a wired (Ethernet) connection for the best results.
  • Devices have a maximum internet speed they can reach, and might not be as fast as your possible internet service level (especially older devices).
  • Multiple devices sharing your internet connection at the same time, whether wired or Wi-Fi, can reduce your internet speed.
  • Learn more at att.com/speed101 and att.com/broadbandinfo.

Can I add AT&T Fixed Wireless Internet to my AT&T Mobile Share Plan and is Rollover Data included?

No, AT&T Fixed Wireless Internet cannot be added to a Mobile Share plan, and Rollover Data is not included in the AT&T Fixed Wireless Internet data plan.

Is Wi-Fi included with AT&T Fixed Wireless Internet?

Yes, you can connect multiple Wi-Fi enabled devices like laptops, smartphones and tablets to the AT&T Fixed Wireless Internet Wi-Fi Gateway, and up to 4 Ethernet-connected devices. When you access your AT&T Fixed Wireless Internet over your Wi-Fi home network using any type of device (including smartphones and some home automation equipment), that counts as AT&T internet data usage. However, if you access the internet via a public or commercial Wi-Fi hotspot, that access does not count as usage.

How far does the AT&T Fixed Wireless Internet Wi-Fi signal reach?

The AT&T Fixed Wireless Internet Wi-Fi Gateway router enables wireless networking capabilities throughout your home or business and helps to minimize wireless dead spots. This smart technology allows you to:

  • Provide high-speed internet connections to multiple devices
  • Create safe and secure wireless networking

Does weather affect service?

AT&T Fixed Wireless Internet relies on a LTE signal from a cell tower. Many things can affect the availability and quality of your service, including network capacity, terrain, buildings, foliage, and weather. A professional installer will confirm sufficient signal strength at your location before installation.

What type of support is available for AT&T Fixed Wireless Internet service?

For AT&T Fixed Wireless Internet Customer Care, call 1-855-483-3063, available 6AM to midnight Central Time 7-days a week.

How long does it take to get AT&T Fixed Wireless Internet service?

AT&T Fixed Wireless Internet service is available for installation within 10 business days of ordering. Professional installation (required) usually takes about 3 hours.

If I move, can I take AT&T Fixed Wireless Internet with me?

If you are moving, please contact AT&T to find out if AT&T Fixed Wireless Internet or other AT&T services are available at your new address. Please do not attempt to move the AT&T Fixed Wireless Internet outdoor antenna.

Can I take AT&T Fixed Wireless Internet to my cottage or second home?

No, AT&T Fixed Wireless Internet is not movable or mobile. Please do not attempt to move the AT&T Fixed Wireless Internet outdoor antenna.  Please contact AT&T to find out if AT&T Fixed Wireless Internet or other AT&T services are available at your cottage or second home.

How is AT&T Fixed Wireless Internet different from AT&T Wireless Home Phone & Internet?

Both AT&T Fixed Wireless Internet and AT&T Wireless Home Phone & Internet provide internet access. AT&T Fixed Wireless Internet includes an outdoor antenna that is professionally mounted on or near the exterior of your home or business to provide a strong signal for better connectivity, while Wireless Home Phone & Internet uses a small desktop device that you can install yourself since there is no outdoor antenna. Stated another way, Wireless Home Phone & Internet is a mobile service, whereas AT&T Fixed Wireless Internet is not. AT&T Fixed Wireless Internet is only available in select (typically rural) areas, while Wireless Home Phone & Internet is available throughout the AT&T wireless footprint.  AT&T Fixed Wireless Internet provides internet download speeds of 10Mbps or over, while Wireless Home Phone & Internet provides the highest speed available to it, typically in the range of 5-12Mbps.

What service limitations apply to AT&T Fixed Wireless Internet?

Services like web hosting or hosted services such as camera, gaming server, peer-to-peer, etc., that require static IP address are not supported by AT&T Fixed Wireless Internet. AT&T Fixed Wireless Internet may not be compatible with DVR/Satellite systems; please check with your provider.

Republican-Controlled FCC Votes to Deregulate Business Data Services; Huge Win for AT&T, Verizon

WASHINGTON (Reuters) – The U.S. Federal Communications Commission voted on Thursday to effectively deregulate the $45 billion business data services market in a win for companies like AT&T Inc, CenturyLink Inc and Verizon Communications Inc that will likely lead to price hikes for many small businesses.

The 2-1 vote is a blow to companies such as Sprint Corp and others that claim prices for business data are too high and backed a 2016 plan under former President Barack Obama that would have cut prices.

It marked a significant step in FCC Chairman Ajit Pai’s aggressive agenda to roll back many existing telecommunications rules and Obama era regulations.

Small businesses, schools, libraries and others rely on business data services, or special-access lines, to transmit large amounts of data quickly.

The services are used, among other applications, to connect banks to ATM machines or gasoline pump credit card readers. Wireless carriers rely on them to get data from an end user to a node in a major network or the so-called backhaul of mobile traffic.

Thursday’s vote scrapped most regulatory requirements in the business data services market, although some price caps in areas with little competition will be retained.

Democratic FCC Commissioner Mignon Clyburn, who accused her Republican colleagues of siding with “the interests of multibillion-dollar providers,” said the ruling “opens the door to immediate price hikes” to small businesses. The rule deregulates pricing in a majority of counties and more than 90 percent of buildings using the services.

Pai defended the decision, saying regulatory requirements had threatened competition and investment.

Pai plans as early as next week to unveil plans to dismantle the Obama administration’s “net neutrality” rules, even as he favors a free and open internet under a different regulatory scheme.

He declined to discuss his plans, but said he had met this week with executives at Facebook Inc, Oracle Corp, Cisco Systems Inc and Intel Corp to discuss internet issues.

In recent days, the independent Small Business Administration Office of Advocacy, the European Union and Democratic members of Congress have raised concerns about the lifting of net neutrality rules.

Under Obama, then FCC Chairman Tom Wheeler in April 2016 proposed a sweeping reform plan for business data services that aimed to reduce prices paid. Wheeler had proposed maintaining and lowering lower price caps using legacy data systems with a phased-in 11 percent price reduction.

Sprint, which backed Wheeler’s proposal, told the FCC in a March 22 letter that “thousands of large and small businesses across the country were paying far too much for broadband because of inadequate competition.”

CenturyLink praised Thursday’s decision as something that aligned regulations with “competitive market realities.” Comcast Corp said the vote would help minimize “burdensome and investment-killing regulations, specifically on new entrants.”

Advocacy group Public Knowledge said the decision “doubles down on incumbent market power, forcing businesses, hospitals, schools, and ultimately consumers to pay more for essential connectivity.”

(Reporting by David Shepardson; editing by Andrew Hay and Tom Brown).

Verizon Reports First-Ever Quarterly Loss of Wireless Customers, Despite New Unlimited Data Plan

FILE PHOTO: The logo of Verizon is seen at a retail store in San Diego, California April 21, 2016. REUTERS/Mike Blake/File Photo

(Reuters) – Verizon Communications Inc on Thursday reported its first-ever quarterly loss of subscribers, even as it offered an unlimited data plan, raising questions on whether the No. 1 U.S. wireless carrier may need a larger acquisition than Yahoo to diversify its business.

Verizon has been struggling to fend off smaller rivals T-Mobile US Inc and Sprint Corp in a maturing market for U.S. wireless service, and in February offered an unlimited data plan for the first time in more than five years.

While it has pursued other revenue streams, including a $4.48 billion deal for Yahoo Inc’s core business, analysts have questioned if it should pursue a more transformative combination.

“We continue to believe that the company needs a strategic transaction to support their wireless business for the long-term,” analysts at New Street Research said in a note.

Meanwhile, Verizon’s main competitor AT&T Inc plans to diversify its business through an $85.4 billion acquisition of Time Warner Inc, which would give it control of cable TV channels like HBO and other coveted media assets.

Verizon’s shares were down 1.2 percent at $48.33 in midday trade.

Earlier this week, Verizon Chief Executive Lowell McAdam said in an interview with Bloomberg News that he is open to deal talks with companies ranging from Comcast Corp to Walt Disney Co.

On Thursday, Chief Financial Officer Matthew Ellis clarified the comments, saying that while the company would consider deals that are in the interest of shareholders, it is confident in its assets.

“The ecosystem is constantly changing, and if there’s somebody who comes to us with an idea of how we can kind of leapfrog forward in that environment, we’re going to listen to them,” Ellis said in an interview with Reuters. But he added, “We are very confident with the strategy that we have.”

In the first quarter, Verizon said it lost 307,000 retail postpaid subscribers or those who pay a monthly bill. Analysts on average were expecting net additions of 222,000, according to market research firm FactSet StreetAccount.

Churn, or customer defections, among wireless retail customers who pay bills on a monthly basis, increased to 1.15 percent of total wireless subscribers, compared with the average analyst estimate of 1.03 percent, according to FactSet.

Ellis noted that churn rose in the first half of the quarter but came down in response to the relaunch of unlimited plans. “It really was a tale of two halves,” he said.

But analysts viewed the results as disappointing.

“They badly missed on every important subscriber metric, and it just underscores that the wireless business is a severely growth-challenged business at the moment,” said Craig Moffett, an analyst at MoffettNathanson in an interview.Net income attributable to Verizon fell to $3.45 billion, or 84 cents per share, in the first quarter ended March 31, from $4.31 billion, or $1.06 per share, a year earlier. Excluding items, earnings per share was 95 cents.

Total operating revenue fell to $29.81 billion from $32.17 billion a year earlier.

According to Thomson Reuters I/B/E/S, analysts had expected adjusted earnings per share of 99 cents and revenue of $30.77 billion.

(Reporting by Anjali Athavaley in New York; Editing by Saumyadeb Chakrabarty, Bernard Orr).

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