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Stop the Cap! Reviews AT&T DirecTV Now: The Cord Cutting Revolution Continues

directvnow-planWhen AT&T announced it would offer 100+ cable television and broadcast network channels under the DirecTV Now brand for $35 a month, Wall Street had a fit.

Craig Moffett, an analyst with Moffett-Nathanson, speculated that AT&T would make at most a profit margin of $5 a month for its $35 a month plan, once programming costs were covered. But then AT&T announced it would sweeten the deal with a free Apple TV Player or Amazon Fire Stick for those confident enough to prepay for the new service. That makes DirecTV Now a purposefully unprofitable service, creating considerable stress for both the cable and satellite industry and their investors.

Variety notes the average DirecTV satellite subscriber delivers about $60 a month in profit to its owner, AT&T. That led the industry magazine to speculate DirecTV Now is a “loss leader” designed to sell its parent company’s AT&T-Time Warner, Inc. merger deal to regulators on the premise of increased competition delivering real savings to consumers.

Thankfully for Wall Street’s nerves, AT&T’s usual practice of marketing things with a lot of fine print emerged in the nick of time, and the $35 dollar price has now turned out to be an introductory offer for early adopters. In the not-too-distant future, AT&T will enroll new customers for its “Go Big” package at a much more profitable $60 a month. Customers who sign up at the $35 rate and stay customers will be able to keep that price as long as they make no changes to their account after the promotion ends.

Moffett

Moffett

But Moffett warned investors that the traditional cable television model is still under serious threat, and AT&T’s less-promoted “Live a Little” package offering 60 popular cable networks for the everyday price of $35 is the equivalent of AT&T “running with scissors” because it alone could cause millions of cable and satellite customers to cut the cord and stay more than satisfied with a slimmed down cable package.

“Virtually all the channels that anyone would really want, save for regional sports networks” are included in the lighter “Live a Little” package, Moffett added. Customers who loathe watching sports but want a beefier package can also sign up for a $50, 80-channel “Just Right” package that primarily omits sports-oriented channels and a handful of spinoff cable networks few would miss.

Moffett and other Wall Street analysts were hoping AT&T would bloat its cheaper package with home shopping, religion, and other little-watched, low-cost cable networks and then entice customers to upgrade to unlock more popular cable channels. Instead, AT&T’s most premium package — “Gotta Have It” which costs $70 a month adds the “can live without” networks like Boomerang, Cloo, El Rey, Centric, and other little-known channels that typically live unnoticed in Channel Siberia on 500+ channel cable lineups. The highest premium priced package is attractive only for those looking for Starz/Encore channels and the basic cable network that gets no respect — Hallmark Movies & Mysteries (a/k/a the Dick van Dyke Permanent Employment Network.)

prepay-directvnow“By stacking their base package with all the best networks — likely a requirement for getting the programming contracts at all — they still have the same problem that was highlighted initially,” by Moffett. “Put simply, they aren’t going to make any money.”

That quest for profit is further challenged with subscriber acquisition programs that dole out free Apple TV units to customers willing to prepay for three months of service at the $35 rate or an Amazon Fire Stick (with Echo remote) in return for prepaying for one month of service. Anyone in the market for either device can sign up for DirecTV Now, get the equipment at an attractive price, and consider the 1-3 months of service a free extra bonus. Customers were reportedly lining up at AT&T’s owned and operated retail outlets (not authorized resellers) to pick up devices and sign up for service today.

At these prices and with these promotions, AT&T DirecTV Now could first decimate the subscriber base of its immediate competitors Sling TV and PlayStation Vue, either of which offer a much less compelling value. AT&T can afford to charge a lower price because it has deeper pockets and enormous volume discounts on the wholesale price of cable programming — combining millions of DirecTV and U-verse TV subscribers together to negotiate what industry insiders suspect are major discounts the smaller providers cannot get.

But there are issues likely to be deal-breakers for some would-be DirecTV Now subscribers:

  • Local broadcast stations are available only in a handful of selected cities and only a very few include all ABC, NBC, and FOX affiliates. CBS is not participating in DirecTV Now at this time, and that is a major omission;
  • NFL Network isn’t on the lineup;
  • Regional sports networks are spotty and geographically restricted. Here is a detailed PDF outlining options by zip code;
  • There is a limit of two concurrent streams and although video quality is very good, it is not the 1080/HD experience AT&T’s marketing material would suggest. The quality of your internet connection will make a difference;
  • No DVR option at this time.

CNET compiled an excellent channel comparison chart to help consumers figure out which, if any, of these upstarts make sense as a cable TV replacement:

DirecTV Now vs. Sling TV vs. PlayStation Vue (top 169 channels, see notes below)

Channel DirecTV Now Packages Sling Package Vue Package
A&E Live a Little Orange, Blue No
ABC Yes or VOD Broadcast extra Yes or VOD
AMC Live a Little Orange, Blue Access
American Heroes Go Big No Elite
Animal Planet Live a Little No Access
Audience Live a Little No No
AXS TV Live a Little Orange, Blue No
Baby TV No Kids extra No
BBC America Live a Little Orange, Blue Access
BBC World News Go Big News extra Elite
beIN Sports No Sports extra Core
BET Live a Little Blue (Orange lifestyle extra) No
Bloomberg TV Live a Little Base No
Boomerang Gotta Have It Kids extra Elite
Bravo Live a Little Blue Access
BTN Just Right No Core
Campus Insiders No Sports extra No
Cartoon Network/Adult Swim Live a Little Orange, Blue Access
CBS No No Yes or VOD
CBS Sports No No No
Centric Go Big No No
Cheddar No Orange, Blue No
Chiller Gotta Have It No Elite
Cinemax PREMIUM ($5/month) PREMIUM No
Cloo Gotta Have It No Elite
CMT Live a Little Comedy extra No
CNBC Live a Little News extra Blue Access
CNBC World Just Right No Elite
CNN Live a Little Orange, Blue Access
Comedy Central Live a Little Orange, Blue No
Comedy.TV Just Right No No
Cooking Channel Just Right Lifestyle extra Elite
CSPAN Live a Little No No
Destination America Go Big No Access
Discovery Channel Live a Little No Access
Discovery Family Go Big No Access
Discovery Life Go Big No Elite
Disney Channel Live a Little Orange Access
Disney Junior Live a Little Kids extra Orange Access
Disney XD Live a Little Kids extra Orange Access
DIY Go Big Lifestyle extra Access
Duck TV No Kids extra No
E! Live a Little Lifestyle extra Blue Access
El Rey Network Gotta Have It Orange, Blue No
Encore Gotta Have It No No
EPIX No Hollywood extra No
EPIX Drive-in No Hollywood extra No
EPIX Hits No Hollywood extra PREMIUM, Elite
EPIX2 No Hollywood extra No
ESPN Live a Little Orange Access
ESPN 2 Live a Little Orange Access
ESPN Bases Loaded No Sports extra Orange No
ESPN Buzzer Beater No Sports extra Orange No
ESPN Deportes No Spanish TV extra Orange Elite
ESPN Goal Line No Sports extra Orange No
ESPNEWS Just Right Sports extra Orange Core
ESPNU Just Right Sports extra Orange Core
Esquire No No Access
Euro News No World News Extra No
Flama No Orange, Blue No
Food Network Live a Little Orange, Blue Access
Fox Yes or VOD Blue Yes or VOD
Fox Business Live a Little No Access
Fox College Sports Atlantic No No Elite
Fox College Sports Central No No Elite
Fox College Sports Pacific No No Elite
Fox News Live a Little No Access
Fox Sports 1 Live a Little Blue Access
Fox Sports 2 Go Big Blue Access
Fox Sports Prime Ticket Just Right No No
France 24 No World News Extra No
Freeform Live a Little Orange Access
Fuse Just Right No No
Fusion Just Right World News Extra Elite
FX Live a Little Blue Access
FXM Go Big No Elite
FXX Live a Little Blue Access
FYI Go Big Lifestyle extra No
Galavision Live a Little Orange, Blue No
Golf Channel Go Big Sports extra Blue Core
GSN Just Right Comedy extra No
Hallmark Live a Little Lifestyle extra No
Hallmark Movies & Mysteries No LIfestyle extra No
HBO PREMIUM ($5/month) PREMIUM PREMIUM, Ultra
HDNet Movies No Hollywood extra No
HGTV Live a Little Orange, Blue Access
Hi-Yah No No Elite
History Live a Little Orange, Blue No
HLN Live a Little News extra Access
HSN No No No
IFC Just Right Orange, Blue Core
Ion No No No
Impact No No Elite
Investigation Discovery Live a Little No Access
JusticeCentral.TV Just Right No No
Lifetime Live a Little Orange, Blue No
LMN Just Right Lifestyle extra No
Local Now No Orange, Blue No
LOGO Go Big Comedy extra No
Longhorn Network Just Right No No
Machinima No No Elite
Maker No Orange, Blue No
MGM-HD No No Elite
MLB Network Just Right No No
Motors TV No Sports extra No
MSNBC Live a Little News extra Blue Access
MTV Live a Little Comedy extra No
MTV Classic Go Big No No
MTV2 Live a Little Comedy extra No
Nat Geo Wild Go Big Blue Elite
National Geographic Live a Little Blue Access
NBA TV Go Big Sports extra Core
NBC Yes or VOD Blue Yes or VOD
NBC Sports Network Just Right Blue Access
NDTV 24/7 No World News Extra No
News 18 India No World News Extra No
Newsy No Orange, Blue No
NFL Network No Blue Core
NFL Red Zone No Sports extra (Blue) PREMIUM (Core and up)
NHL Network Go Big Sports extra No
Nick Jr. Live a Little Blue No
Nickelodeon Live a Little No No
Nicktoons Live a Little Kids Extra Blue No
ONE World Sports No No Elite
Outdoor Channel No No No
Outside Television No Sports extra Elite
OWN Just Right No Access
Oxygen Just Right Lifestyle extra Blue Access
Palladia No No Elite
PBS No No No
Poker Central No No Elite
Polaris No Orange, Blue Elite
POP No No Access
QVC No No No
Revolt Go Big No No
RFD TV Live a Little No No
Russia Today No World News Extra No
Science Just Right No Access
SEC Network Just Right Sports extra Orange Core
Showtime No No PREMIUM, Elite
Spike Live a Little Comedy extra No
Sprout Go Big No Elite
Starz Gotta Have It PREMIUM No
Sundance TV Go Big Hollywood extra Core
Syfy Live a Little Blue Access
TBS Live a Little Orange, Blue Access
TCM Live a Little Hollywood extra Core
Teen Knick Live a Little Kids extra Blue Elite
Telemundo Live a Little No No
Tennis Channel Go Big No No
The Weather Channel Live a Little No No
TLC Live a Little No Access
TNT Live a Little Orange, Blue Access
Travel Channel Just Right Orange, Blue Access
truTV Live a Little Blue (Orange comedy extra) Access
TV Land Live a Little Comedy extra No
TVG Go Big No No
Universal HD No No Elite
Univision Live a Little Blue (Orange Broadcast extra) No
Univision Deportes Gotta Have It Sports extra No
Univision Mas Just Right Blue (Orange Broadcast Extra) No
USA Network Live a Little Blue Access
Velocity HD Live a Little No Elite
VH1 Live a Little Lifestyle extra No
VH1 Classic No No Elite
Vibrant TV No Lifestyle extra No
Viceland Live a Little Orange, Blue No
WE tv Live a Little Lifestyle extra Access
WeatherNation Live a Little No No
Notes

Broadcast networks including ABC, CBS, Fox and NBC are not available for live streaming in many cities, except where noted as “yes.” The term “VOD” means viewers can watch these shows on-demand 24 hours after airing.
Most RSNs (Regional Sports Networks) not listed; varies per locality

PREMIUM = Available for an additional monthly fee beyond base package

DirecTV Now package key:
Live a Little = $35/month (Local ABC, Fox, NBC broadcasts included in select markets)
Just Right = $50/month
Go Big = $60/month ($35 / month introductory price)
Gotta Have It = $70/month

Sling TV package key:
Orange = $20/month
Blue = $25/month
other “”extras”” = another $5 /month each (Sports extra with Blue is $10)
Broacast Extra: ABC, Univision and Univision Mas available to Sling Orange subscribers in select cities

PlayStation Vue package key:
(for New York, Los Angeles, Chicago, Philadelphia, Dallas, San Francisco, Miami ONLY)
Access (Base) = $40/month
Core = $45/month (includes Access channels, some Regional Sports Networks)
Elite = $55/month (includes Access and Core channels)
Ultra = $75/month (includes Access, Core and Elite channels, plus HBO and Showtime)

(for all other cities, where ABC, CBS, Fox and NBC are available via VOD only)
Access Slim (Base) = $30/month
Core Slim = $35/month (includes Access channels, some Regional Sports Networks)
Elite Slim = $45/month (includes Core and Access channels)
Ultra Slim = $65/month (includes Access, Core and Elite channels, plus HBO and Showtime)

$5 a month each for HBO and Cinemax.

$5 a month each for HBO and Cinemax.

Time Warner, Inc. did its part, offering a substantial deal to DirecTV Now to allow customers to add HBO and Cinemax for just $5 a month each, substantially less than what both networks charge customers signing up a-la-carte. This also unlocks access to streaming options on both networks’ websites.

In fact, as a DirecTV Now customer, you will also become an authenticated pay television subscriber, unlocking access on various cable network websites to extra streaming and on-demand options.

The implications of DirecTV Now depend on how long AT&T extends its $35 offer, which is going to be compelling for a lot of Americans. Moffett predicts DirecTV Now could sign up a staggering 11 million Americans — at least two million cannibalized from its own DirecTV satellite customer base, six million cutting the cord on their cable company (including AT&T U-verse) and another three million cord-cutters or “cable-nevers.” Most of the latter are Millennials, and research suggests $35 may be low enough of a price point to sign them up.

AT&T is also raising concerns among internet activists because online streaming of DirecTV Now will not count against an AT&T postpaid customer’s data allowance. This zero rating scheme is seen as an end run around Net Neutrality, particularly because AT&T is not as generous with its competitors. AT&T said it will offer other video streamers the possibility of being exempted from AT&T data allowances, if they pay AT&T for the privilege.

How It Works/Signing Up

AT&T DirecTV Now starts with the Google Chrome 50+, Safari 8+ or Internet Explorer 11+ (on Windows 8 and up) web browsers or the DirecTV Now app. AT&T recommends Chrome for desktop viewing. The service doesn’t work with Firefox, Microsoft Edge, or legacy browsers.

The first step is registering for a 7-day free trial. Before handing over your credit card number, if you scroll down you will find a small free preview option is also available that includes a largely useless streaming barker channel promoting the service and a respectable collection of video on demand options from basic cable networks. The free video streaming option will give you a clue about how the service is likely to perform on your internet connection and devices. For the record, DirecTV Now now supports:

Support for other devices like Roku is coming next year.

Customers must be within the United States to use the service. If you travel abroad or to any U.S. territories like Guam, the Virgin Islands, or Puerto Rico, DirecTV Now will stop working until you return. When you sign up, keep in mind your billing zip code will mean a lot when it comes to accessing regional sports and local broadcast channels. DirecTV Now uses your billing zip code and your actual location to determine whether you are qualified to access regional sports networks and local stations.

Score a Free Apple TV Player or Amazon Fire TV Stick

Apple TV (4th Generation): Effectively free after prepaying for three months of service.

Apple TV (4th Generation): Effectively free after prepaying for three months of service.

If you are looking to score an Apple TV (4th generation) or an Amazon Fire TV Stick, you will want to skip the 7-day free trial and enroll in a paid plan immediately, which will allow you to select which player you want. If you want the Apple TV, you will prepay for three months at $35 a month ($105). The Amazon Fire TV Stick only requires you to prepay for the first month of service ($35). One device per email address, but you can sign up for multiple accounts (using individual email addresses) and get a device for each — especially useful for larger families that could run into DirecTV Now’s two-stream limit.

Consider your choices before enrolling. If you want to add premium channels or upgrade your plan, and you select the three-month prepay option to grab an Apple TV Player, adding premium channels like HBO and Cinemax or moving to a higher plan will result in three months of prepaid charges for those upgrades as well, billed automatically to your credit card on file — which amounts to a $30 charge if you select HBO and Cinemax. After your promotional prepaid term ends, your account will continue to be billed at the $35 (plus any add-ons) rate until you cancel. AT&T covers you for the forfeited first free week by extending your bill date out by seven days. Allow 2-3 weeks for the device(s) to be shipped to you.

You can also sign up at an AT&T owned and operated retail store, but be aware AT&T “authorized” reseller stores are not participating in this promotion. That may allow you to bring home a device today.

Don’t care about the device promotions? Take the 7-day free trial, but be aware that you are giving AT&T your credit card number and charges begin immediately after the free week ends unless you cancel. Here’s how:

  1. Sign in to your account.
  2. From your User Account overview page, select Manage My Plan.
  3. Select the Cancel Plan link.
  4. Choose one of the listed reasons.
  5. Select Cancel Now to confirm cancellation.

Your subscription will continue until the end of the billing cycle. No refunds or credits are provided for partial months. Your account will revert to Freeview demo status after you cancel a subscription.  You can add a subscription package back at any time.

Oddly, AT&T is not charging sales tax for New York, California, Maryland or Virginia residents. Customers in states like Tennessee where AT&T provides local phone service were most likely to face sales taxes. Those signing up early are in the best position to exploit what appears to be an oversight, or it represents the first time the New York Department of Taxation and Finance left money on the table.

directv-now-price

Streaming from Your AT&T Wireless Device Does Not Count Against Your Data Allowance

If you’re a DirecTV Now and AT&T Wireless customer, streaming most DirecTV Now movies and programs over the AT&T wireless network won’t count against your data usage allowance, according to AT&T. But believe it or not, AT&T’s fine print indicates advertisements and non-streaming app activity do count! There are some other important disclosures to be aware of:

  • You must be on the AT&T Wireless network within the U.S. (U.S. territories are not qualified for zero rating);
  • You must be a postpaid, not a prepaid AT&T wireless customer to qualify and must not have “data block” on your mobile line;
  • If you are grandfathered on an unlimited data plan, using DirecTV Now will not count against the 22GB data threshold which subjects you to speed throttling;
  • This offer may disappear at any time and/or is subject to change.

DirecTV Now Qualifies You as an Authenticated Pay Television Subscriber

Many cable networks require customers enter their cable, satellite, or telco TV login credentials to unlock video streaming and on-demand features. DirecTV Now is a qualified provider for these websites (more coming):

Other networks are not yet enabled for DirecTV Now. CNN, for example, has a prompt for DirecTV satellite customers to log in, but DirecTV Now has its own account registration system.

Local Channels Are Very Spotty

Local over the air channels are very limited on DirecTV Now and are geographically restricted. You can access these channels only if you are located in or very near to the cities listed below and your billing zip code is in the same area. If you travel outside of the immediate area, live streaming will stop working until you return.

ABC*  NBC**  FOX  and Telemundo  are covered by DirecTV Now in selected cities. CBS is not available on the service at all at this time.

  • wlsAtlanta, GA: WAGA-TV
  • Austin, TX: KTBC
  • Boston, MA: Telemundo East
  • Charlotte, NC: WJZY
  • Chicago, IL: WLS-TV, WMAQ, WFLD, Telemundo East
  • Dallas-Ft Worth, TX: KXAS, KDFW-TV, Telemundo East
  • Denver, CO: Telemundo East
  • fox2Detroit, MI: WJBK
  • Fresno-Visalia, CA: KFSN-TV, Telemundo East
  • Gainesville, FL: WOGX
  • Hartford-New Haven, CT: WVIT
  • Houston, TX: KTRK-TV, Telemundo East
  • 4nbcLas Vegas, NV: Telemundo East
  • Los Angeles, CA: KABC-TV, KNBC, KTTV, Telemundo East
  • Miami-Ft Lauderdale, FL: WTVJ, Telemundo East
  • Minneapolis, MN: KMSP-TV
  • New York, NY: WABC-TV, WNBC, WNYW, Telemundo East
  • Orlando-Daytona, FL: WOFL
  • Philadelphia, PA: WPVI-TV, WCAU, WTXF-TV, Telemundo East
  • Phoenix, AZ: KSAZ-TV, Telemundo East
  • Raleigh-Durham, NC: WTVD-TV
  • San Diego, CA: KNSD
  • San Francisco/Oakland/San Jose, CA: KGO-TV, KNTV, KTVU
  • Tampa-St Petersburg, FL: WTVT
  • Washington, D.C.: WRC, WTTG

*Not available on Internet Explorer 11 on Windows 7. **NBC live stream available on mobile and desktop devices only.

Giving the Service a Test

Stop the Cap! enrolled as an ordinary customer this morning and gave the service a rigorous test, including multiple streams over our 50/5Mbps internet connection. The service debuted today, and there is little doubt there is intense interest from consumers, so we expected some performance problems from the initial demand. We didn’t see any evidence of traffic congestion, however, and that is a good sign.

AT&T's John Stankey explaining DirecTV Now.

AT&T’s John Stankey explaining DirecTV Now.

A similar test of Sling TV did not perform as well during peak viewing times, when streaming problems emerged. DirecTV Now seems to be built to withstand intense demand.

One customer with a 6Mbps U-verse internet connection “in the boonies” was impressed the video quality of DirecTV Now was high even on a relatively slow DSL-like connection.

“This blows SlingTV away,” the person shared. “I only have U-verse 6Mbps internet service and it is not pixelated or buffering at all. Looks exactly like my regular DirecTV picture.”

AT&T published these recommendations for DirecTV Now customers regarding internet connection speeds:

  • 150kbps – 2.5Mbps – Minimum broadband connection speed for Mobile devices
  • 2.5 – 5.0Mbps – Recommended for HD quality

We’ve been led to believe DirecTV Now should perform equivalently to 1080i HDTV service (depending on the video source of course). We cannot say we agree it does right now. We noticed significant artifacts on high-motion video and picture graininess that left us feeling this was closer to a 720p HD experience. It isn’t possible to say whether the video player reduced playback quality because of internet traffic issues we were unaware of or if this is how the picture is supposed to look. It did not significantly detract from the viewing experience and the lack of buffering and pixelation was far more important to us.

AT&T store in NYC.

AT&T store in NYC.

DirecTV Now would serve adequately as a cable TV replacement if it had local station coverage and some type of DVR. At present, DirecTV Now is limited to a “Restart” feature that allows you to restart shows already in progress on certain channels, but you cannot fast-forward or record a restarted show. Once AT&T introduces a cloud-based DVR and fills out the local station lineup, this service could be lethal to overpriced cable TV packages.

AT&T’s marketing attempts to undercut the powerful position of inertia by setting an unknown time limit for customers to enroll in the $35 a month video package. If you don’t sign up today, you may not get the “free” Apple TV or Amazon Fire Stick and a respectable cable TV package for just $35 a month — about half what cable operators are charging these days for their bloated video packages. AT&T doesn’t care if you stick with your current cable provider and signup for DirecTV Now, if only to grab free streaming video equipment while sampling the service. They get their money either way.

Had AT&T permanently kept the price at around $35, many consumers would likely sit back and wait for AT&T to sort out the streaming contract issues it has with the TV networks — CBS in particular, and come up with a DVR solution before those potential customers decided to sign up and make the change. Based on several “hot deals” websites, the mentality among many consumers is to “lock in” the $35 price now and wait for AT&T to build out the package while continuing to invest $35 a month on it. That doesn’t seem so bad when you get free electronics as part of the deal.

Our Final Take

AT&T’s DirecTV Now is a potential winner and worth signing up for because of the introductory price and free equipment offers. But if you decide not to disconnect your cable/satellite television service, it is probably safe to drop DirecTV Now after your prepayment expires and return to resume service a little later. There will probably be some warning when AT&T will end the introductory price for the service, and interested customers can hop back on board before that date arrives. DirecTV Now will be a formidable competitor, but it will fight against consumer resistance to confront the cable company and cut cable’s cord until it solves the local channels issue and has a credible DVR option. The service could also use an add-on to make adding additional concurrent streams possible and more affordable than just signing up for a second account.

Don’t count out Big Cable just yet. With data caps and other internet overcharging schemes, Comcast, Cox, Suddenlink, and others can play games with usage allowances to deter customers from streaming all of their video entertainment online at the risk of blowing past their allowance. DirecTV Now’s $35 price won’t mean much after overlimit fees begin appearing on your internet bill.

Trump’s Short List for FCC Chairman Contains Industry Insider Who Questions Need for FCC

robber-barons

Making America Great for Robber Barons Again

The president-elect’s choice for chairing the Federal Communications Commission may conclude there is little reason to even have a regulatory agency for telecommunications.

Donald Trump has gone farther to the right than any president-elect in modern history, at least in how he has chosen to staff his transition team. Having a place on that team is traditionally seen as a fast track to getting a plum cabinet position or leadership role in Washington’s bureaucracy, and Mr. Trump’s choices for overseeing tech and telecom policy have more in common with Ayn Rand than Ralph Nader.

Two of the top picks for his FCC transition team are true believers in the “laissez-faire/the free market always knows best” camp, but both have also been on the payroll of Big Telecom companies that believe special favors are perfectly acceptable.

The notorious D.C. revolving doorman Jeffrey Eisenach, now a leading contender for the next chairman of the FCC, is a man with so many hats that the New York Times published an exposé on him, noting it has become hard to tell whether Eisenach’s views are his own, those of his friends at the corporate-friendly American Enterprise Institute (AEI), or those of various telecom companies like Verizon that have had him on the payroll.

Eisenach has been heavily criticized for his especially close ties to telecom companies, fronting their positions at various Washington events often under the cover of his role as a “think tank scholar” at AEI. Eisenach despises Net Neutrality with a passion, and has used every opportunity to attack the open internet protection policies as overregulation. At the same time, Eisenach’s consulting firm was also doing work on behalf of the cellular telephone industry, including Verizon and other cell companies.

Eisenach is exceptionally casual about disclosing any paid financial ties, and has received criticism for it. His prominence as a member of the Trump transition team is therefore curious, considering incoming vice president Mike Pence has tried to clean the transition team of lobbyists.

Eisenach

Eisenach

Trump’s other leading contender is Mark Jamison, a former lobbyist for Sprint who now works for AEI. Jamison has received less attention and scrutiny from the telecommunications press, but in some cases his views, well-represented on his blog, are even more extreme than those of Mr. Eisenach.

In a 2013 report to the Florida Public Service Commission, Jamison looked down on consumer involvement in creating and enforcing telecom regulations:

Does customer involvement in regulation improve outcomes? Not always, according to PURC Director Mark Jamison. Speaking at the Australian Competition and Consumer Commission annual conference in Brisbane, Australia, Dr. Jamison explained that the key question is, “Who do we expect to change when regulators and customers engage?” Most discussion on customer engagement is about customers informing regulators about customer preferences and utility practices. Learning by regulators is important, but so are the building legitimacy, ensuring regulator integrity, and engaging in adaptive learning that are largely about changing customers. An over emphasis on changing regulators can result in pandering to current norms, which hinders institutional strengthening and adaptive work.

In that same report, Jamison echoed some of the same sentiments he has made on his blog, questioning the wisdom of regulating telecommunications policies, providing subsidies to ensure affordable telephone service (Lifeline), subsidizing rural broadband expansion, and maintaining the core concept of universal service, which means assuring every American that wants utility service can affordably get it.

Jamison even questioned the need for the FCC in its current form, particularly overseeing rate regulation, fair competition, and enforcing rules that overturn the telecom industry’s cartel-like agreement on mandated set-top boxes (and rental fees), Net Neutrality and interconnection agreements and fees, and consumer protection:

Most of the original motivations for having an FCC have gone away. Telecommunications network providers and ISPs are rarely, if ever, monopolies. If there are instances where there are monopolies, it would seem overkill to have an entire federal agency dedicated to ex ante regulation of their services. A well-functioning Federal Trade Commission (FTC), in conjunction with state authorities, can handle consumer protection and anticompetitive conduct issues.

Content on the web competes well with content provided by broadcasters, seeming to eliminate any need for FCC oversight of broadcasters. Perhaps there is need for rules for use of the airwaves during times of emergency, but that can be handled without regulating the content providers themselves.

The only FCC activity that would seem to warrant having an independent agency is the licensing of radio spectrum. Political interference in spectrum licenses would at least dampen investment and could lead to rampant corruption in the form of valuable spectrum space being effectively handed out to political cronies.

Jamison

Jamison

Jamison’s theories are interesting, but in the real world they are impractical and frankly untrue. Readers of Stop the Cap! have long witnessed the impact of the insufficiently competitive telecom marketplace — higher broadband fees, data caps, and relentlessly terrible customer service. The costs to provide service have declined, but prices continue to rise. For many consumers, there is barely a duopoly for telecom services with cable companies taking runaway victory laps for providing 21st century broadband speeds while an area’s phone company continues to try to compete with underinvested DSL. The FTC has been a no-show on every important telecom issues of our time, in part because the industry got itself deregulated, leaving oversight options very limited.

It wasn’t the FTC that halted AT&T’s attempted buyout of T-Mobile and Comcast didn’t lose its struggle to acquire Time Warner Cable because of the FTC either. Pushback from the FCC and Department of Justice proved to be the only brakes on an otherwise consolidation-crazed telecom sector.

Oversight of broadcasting remains important because unlike private networks, the airwaves are a publicly owned resource used for the good of the American people. Jamison would abandon what little is left of regulations that required broadcasters to serve the public interest, not just private profit motives. Programming content is not the only matter of importance. Who gets a license to run a television or radio station matters, and so does the careful coordination of spectrum. It is ironic Jamison theorizes that a lack of regulation (of spectrum) would lead to political interference, rampant corruption, and cronyism. Anyone who has followed our experiences dealing with many state regulatory bodies and elected officials over telecom mergers and data caps can already use those words to describe what has happened since near-total deregulation policies have been enacted.

Public and private broadband competitors like local communities and Google have been harassed, stymied, and delayed by organized interference coordinated by incumbent telecom companies. Allowing them off the leash, as Jamison advocates, would only further entrench these companies. We have a long history in the United States dealing with unfettered monopoly powers and trusts. Vital infrastructure and manufacturing sectors were once held captive by a handful of industrialists and robber barons, and consumers paid dearly while those at the top got fabulously rich. Their wealth and power grew so vast and enduring, we are still familiar with their names even today — Rockefeller, Vanderbilt, Morgan, Schwab, Mellon, Duke, and Carnegie, just to name a few.

Jamison wrote a blog entry mapping out how to ultimately destroy the effectiveness of the FCC:

  • Take direction from politicians,
  • Promote partisan divides,
  • Change the language in orders after the FCC votes,
  • Ignore the facts, or at least manipulate them.

Jamison intended to argue that represented the current state of the Obama Administration’s FCC, but it is just as easy to ponder what comes after the Trump-lit bonfire of burned regulations and oversight, leaving only Big Telecom companies and their paid mouthpieces to manipulate the facts.

Jamison also undercuts his own argument in two other ways: first by declaring Michael Powell one of the great FCC chairmen of the modern era (after leaving the FCC he became president of the country’s biggest cable industry lobbying group) and second by relying extensively on quoting people with direct and undisclosed financial ties to the telecom companies that will directly benefit from implementing Jamison’s world views.

New York Times: In a 2014 email, Mr. Eisenach encouraged Michael O’Rielly, a Republican F.C.C. commissioner, to use an American Enterprise Institute event to “lay out the case against” internet regulations.

New York Times: In a 2014 email, Mr. Eisenach encouraged Michael O’Rielly, a Republican FCC commissioner, to use an American Enterprise Institute event to “lay out the case against” internet regulations.

Who doesn’t ultimately matter much in this debate, according to Jamison, are customers and consumers, whose input in these discussions is dismissed as either trendy or misinformed. No similar conclusions are forthcoming from Mr. Jamison about the influence and misinformation emanating from huge telecommunications companies that keep more than a few of his self-interested sources in comfortable suburban Virginia homes, driving their nice cars to and from the offices of shadowy think tanks that receive direct corporate funding or go out of their way to hide their benefactors.

Appointing either Mr. Eisenach or Mr. Jamison to the Federal Communications Commission would be the ultimate rubber stamping of business as usual in Washington, exactly what Donald Trump ran against. That may make Verizon or Comcast “great again,” but it certainly won’t help the rest of the country.

Another Mega Merger: AT&T Acquires Time Warner (Entertainment) for $85.4 Billion

att-twIt was a busy weekend for AT&T’s Randall Stephenson and Time Warner (Entertainment)’s Jeff Bewkes, culminating in an announcement from AT&T it was acquiring Time Warner in a deal worth $85.4 billion.

AT&T CEO Stephenson will remain as CEO while Bewkes stays temporarily to help oversee the transition of the merged company.

The deal has sparked confusion among some consumers who associate Time Warner with Time Warner Cable, but in fact the two entities are independent companies. Time Warner, Inc., is the entertainment and content provider that owns HBO, Warner Bros., CNN, TNT, and other networks. Time Warner Cable was spun-off in 2009 as an independent cable operator that was purchased by Charter Communications earlier this year.

AT&T’s interest in Time Warner is entirely about its video content. By owning Time Warner, AT&T can win deals to place its video programming on U-verse, DirecTV, and AT&T wireless smartphones and tablets without running into heated contract renewal negotiations, spiraling prices, and restrictions on how that content is viewed.

AT&T is hoping its acquisition will generate more revenue to make up for stalled wireless revenue growth. AT&T customers already can view DirecTV content on their smartphones without it counting against one’s usage allowance. AT&T could offer a similar usage cap exemption for Time Warner-owned programming, although it would raise the ire of consumer groups fighting for Net Neutrality, which prohibits preferential treatment of internet content.

Stephenson

Stephenson

Stephenson hopes the addition of Time Warner to the AT&T family will strengthen his existing plan to compete nationwide with cable television providers, offering a streamed bundle of cable channels under the DirecTV brand starting as early as this winter.

Stephenson has talked to Bewkes about a merger of the two companies since August, but Time Warner has always proved an elusive seller, having earlier rebuffed a buyout attempt from 21st Century Fox. Stephenson was talking to a man who pushed Time Warner Cable out of its corporate family nest back in 2009, and the reasons for doing so were ironic considering this weekend’s acquisition announcement:

Time Warner’s management believed that the separation was the right step for Time Warner based on the changes in Time Warner Cable’s business over time. […] Time Warner’s management believed that there were a number of potential benefits from the separation transaction:

  • Time Warner would become a more streamlined portfolio of businesses focused on creating, packaging and distributing branded content.
  • Time Warner and Time Warner Cable would each have greater strategic flexibility and each would have a capital structure that better suits their respective needs.
  • The separation would provide investors with greater choice in deciding whether to own shares of Time Warner or Time Warner Cable or both companies based on their separate portfolios of businesses and assets.

What regulators ultimately think about the deal will probably take at least a year to learn, but reaction from Wall Street and both political parties was decidedly negative. AT&T’s decision to pay half the purchase price in cash worries investors more than the remainder of the cost paid in stock. AT&T’s stock price is falling, upsetting investors concerned about AT&T’s dividend, and the market may be signaling concern the merger might be a mistake of epic proportions similar to the disastrous $164 billion AOL-Time Warner merger in 2000.

Bewkes

Bewkes

Tom Eagan, an analyst with Telsey Advisory Group, said owning Time Warner for its content didn’t make much financial sense when it could license it for considerably less, as it does now.

“Why buy the cow when you get the milk for free?” Eagan wrote his clients.

Many analysts are wondering what changed Bewkes’ thinking that led to him spinning off Time Warner Cable in 2009, with his decision to sell in 2016. Time Warner got rid of its video distribution business because consumers were increasingly looking for alternatives to cable television. In 2000, that came primarily from satellite providers. Today it’s cord cutting.

Combining AT&T and Time Warner would create a mega-corporation that would own or control many of the largest cable networks and a major Hollywood studio and allow AT&T to maintain absolute control over how that content was distributed. Shareholders were concerned about the price tag of the deal, driving shares down in both companies. Combining AT&T’s existing debt with Time Warner will leave the combined company saddled with $175 billion in debt — a massive amount of money that may not be financed at near zero percent interest for long, if the Federal Reserve boosts interest rates. Moody’s has put AT&T’s credit ratings up for review for a possible downgrade as a result.

Both Republicans and Democrats reacted with unease about the prospect of creating another Comcast/NBCUniversal-sized entertainment company. Almost all were skeptical about the benefits to consumers. AT&T’s competitors seemed even more chilled, fearing AT&T’s control of both the content and the means to distribute it would give the juggernaut an unfair advantage. For example, AT&T could give itself a discount to carry Time Warner programming on U-verse and DirecTV that would be unavailable to competitors. It might also take a harder line on competing providers at contract renewal time.

Some regulators and politicians believe bigger has not proved better for consumers in the telecom space, particularly after seeing the results of Comcast merging with NBCUniversal. Critics contend Comcast has never taken the deal’s approving consent decree seriously, and have dragged their feet on adhering to the deal’s many conditions. Consumers have gotten almost nothing from the merger except higher cable bills.

tw-att-consolidation

Analysts predict AT&T will do everything possible to minimize regulator review of its deal. The first step will be to eliminate the FCC from the deal review process, which is a very real possibility considering Time Warner and AT&T have few deal-related FCC-issued licenses beyond a single independent television station in Georgia owned by Time Warner. That station could be sold or transferred to a separate entity within months. The deal will get a mandatory review by the Justice Department, looking for evidence of antitrust. AT&T plans to claim the merger combines two entirely different companies and won’t have any implications on competition.

Critics of the deal think otherwise, pointing to the potential of favoring AT&T over cable companies with lower programming rates. Net Neutrality proponents are also concerned about AT&T’s practice of zero rating its own content, which gives AT&T a competitive advantage in the wireless space.

Net Neutrality End Run: AT&T Exempts Its Own DirecTV Content from Its Mobile Data Caps

directvAT&T Mobility customers can now stream AT&T-owned DirecTV video on their mobile devices without fear of hitting their data allowance, because AT&T has exempted its own content from mobile data caps.

AT&T customers using the DirecTV iPhone app discovered the sudden exemption in an update released today, according to a report in Ars Technica:

“Now you can stream DirecTV on your devices, anywhere—without using your data. Now with AT&T,” the app’s update notes say under the heading “Data Free TV.” This feature requires subscriptions to DirecTV and AT&T wireless data services.

It sounds like the data cap exemption may not apply to all data downloaded by the app, as the update notes further say that “Exclusions apply & may incur data usage.” The service is also “Subject to network management, including speed reduction.” We’ve asked AT&T for more information and will provide an update if we receive one.

Customers can also use the app to download shows recorded on their home DVR straight to their mobile device(s) for viewing. Updates to the DirecTV apps for Android and iPad devices introducing similar exemptions are still pending as of this morning.

A description of "what's new" in the DirecTV app released this morning in the iTunes app store.

A description of “what’s new” in the DirecTV app released this morning in the iTunes app store.

AT&T is engaging in a practice known as “zero rating,” which exempts certain provider-preferred or owned content from that provider’s own data caps or allowances. Critics call zero rating an end run around Net Neutrality because users are more likely to use services that don’t count against their data allowance over those that do. The FCC’s definition of Net Neutrality prohibits providers from artificially enhancing the performance of certain websites at the expense of others, but says nothing about data caps or zero rating.

Chima

Chima

“All forms of zero rating amount to price discrimination, and have in common their negative impact on users’ rights,” said Raman Jit Singh Chima, policy director of Access, a group fighting for global preservation of Net Neutrality. “Zero rating is all about control. Specifically, control over the user experience by the telecom carrier — and potentially its business partners. We can see this is true when we look at how zero rating is implemented technically. Technologically, it is about manipulation of the network, where you guide or force the user to change the way they would otherwise use it.”

The FCC seemed to agree with Chima, specifically banning AT&T from exempting its own streaming video services and those of DirecTV from AT&T’s data caps in the agreement allowing AT&T to acquire DirecTV. But the FCC only mentioned AT&T’s caps on its DSL and U-verse home broadband services, not AT&T Mobility. AT&T took full advantage of the apparent loophole for its mobile customers.

AT&T has previously stated it does not discriminate against online content and is happy to exempt other video services from its data allowances and caps if those companies pay AT&T for the privilege.

The benefit of zero rating is obvious for AT&T. The company can now market its cell phone services to DirecTV customers with a significant advantage over competitors — free access to DirecTV video not available from Verizon, Sprint, or T-Mobile. It can also strengthen its earlier promotion offering unlimited DSL/U-verse service to those who bundle either product with a DirecTV subscription, by pitching zero rating for customers on the go.

AT&T’s competitors T-Mobile and Verizon also engage in zero rating on their mobile service plans.

Unlimited Data is Back (With Fine Print): T-Mobile/Sprint Push Unlimited Data Plans for All

Tmo1LogoSeveral years after wireless unlimited data plans became grandfathered or riddled by speed throttling, America’s third and fourth largest carriers have decided the marketplace wants “unlimited everything” after all and is prepared to give customers what they want, at least until they read the fine print.

T-Mobile Announces “The Era of the Data Plan is Over”: T-Mobile ONE

T-Mobile CEO John Legere used a video blog to announce a major shakeup of T-Mobile’s wireless plans this morning, centered on the concept of “unlimited everything.”

“The era of the data plan is over,” said Legere. T-Mobile’s new plan — T-Mobile ONE — does away with usage caps and usage-based billing and offers unlimited calls, texting, and data on the company’s 4G LTE network. The plan becomes available Sept. 6 at T-Mobile stores nationwide and t-mobile.com for postpaid customers. Prepaid plans will be available later.

tmoone

“Only T-Mobile’s network can handle something as huge as destroying data limits,” said Legere. “Dumb and Dumber can’t do this. They’ve been running away from unlimited data for years now, because they built their networks for phone calls, not for how people use smartphones today. I hope AT&T and Verizon try to follow us. In fact, I challenge them to try.”

Legere

Legere

T-Mobile claims the savings with its unlimited plan are enormous compared to its bigger competitors AT&T and Verizon Wireless.

Verizon’s largest LTE usage-capped data plan would cost a family of four $530/month. That’s $4,440 more than T-Mobile ONE will charge.

T-Mobile ONE costs $70 a month for the first line, $50 a month for the second, and additional lines are $20 a month, up to 8 lines with auto pay (add $5 per line if you don’t want autopay). Customers can add tablets for an extra $20 a month.

T-Mobile does offer some caveats in the fine print which are relevant to customers:

  • All video streaming on this plan is throttled to support a maximum of 480p picture quality. Higher video quality is available with an HD add-on plan for $25/mo per line;
  • Tethering is included with T-Mobile ONE, but it is painfully speed-limited to 2G speeds — around 70kbps, just a tad faster than dial-up. At that speed, a web page that will take less than five seconds to load on a 4G network will take 17-25 seconds. A 60 second YouTube video will take nearly five minutes to watch, and downloading apps or sharing images is often impossible because of timeouts. If you want 4G tethering, that will be $15 a month for 5GB, please;
  • Customers identified as among the top 3% of data users, typically those who use more than 26GB of 4G LTE data a month will find themselves in the same data doghouse T-Mobile’s Simple Choice customers are in. That means during peak usage periods on busy cell towers, heavier users are deprioritized on T-Mobile’s network, but we’re not sure if that results in slight speed reductions or the kind of drastic 2G-like experience these kinds of “fair usage” policies often deliver.

Our analysis:

bingeonWhile we’re happy to see unlimited data plans return to prominence, T-Mobile is continuing to punish high bandwidth applications, tethering, and usage outliers with frustrating speed throttles.

T-Mobile’s biggest source of increasing traffic is coming from online video. About a year ago, Legere introduced T-Mobile’s Binge On program, which offers streaming video from T-Mobile’s partners without it counting against your usage allowance. This program had the potential of causing problems with the Federal Communications Commission’s Net Neutrality rules.

Legere seemed to avoid trouble by revealing enough information about Binge On to make it clear why the program exists — to reduce video traffic’s impact on T-Mobile’s network. That might seem counterintuitive until one looks at what it takes to be a Binge On partner — allowing T-Mobile’s Binge On-related traffic to be “optimized” to Standard Definition video (around 480p). No money changes hands between T-Mobile and its Binge On partners.

T-Mobile makes it easy to be a BingeOn participant.

T-Mobile makes it easy to be a Binge On participant.

Binge On was an important factor in freeing up bandwidth on T-Mobile’s network. Some analysts suggest two-thirds of T-Mobile’s video traffic load disappeared after Binge On was introduced. Video is likely the single biggest bandwidth consuming application on wireless networks today. If a customer is watching on a smartphone or even a small tablet, 480p video is generally adequate and has a lower chance of stopping to buffer.

slowAnother clue about the impact of online video on T-Mobile’s network is the same video throttling strategy is built into T-Mobile ONE and applies to all online video, whether the provider partners with T-Mobile or not. Also consider the extraordinary cost of the optional HD Video add-on, which defeats video throttling: a whopping $25 per month per device. That kind of pricing clearly suggests 1080p or even 4K video is a major resource hog for T-Mobile, and customers looking for this level of video quality are going to pay substantially to get it.

T-Mobile is also clearly concerned about tethering, relegating hotspot and tethered device traffic to 2G speeds, which will quickly deter anyone from depending on it except in emergencies. Again, traffic is the issue. Some semi-rural customers unserved by cable but able to get a 4G signal from a T-Mobile tower may think of using T-Mobile as their exclusive source of internet access. At speeds just above dial-up, they won’t consider this an option.

We’re also disappointed to see 26GB of usage a month as the threshold for potential speed throttling. T-Mobile ONE is not cheap, and without more detailed information about how often those exceeding 26GB face speed slowdowns, how much of a slowdown, and how quickly those speed reductions disappear when the tower gets less congested would be very useful. Until then, customers are likely to interpret 26GB as a type of soft usage allowance they will not want to exceed.

T-Mobile ONE also delivers a powerful signal to Wall Street because it raises the lowest price a T-Mobile postpaid customer can pay to become a customer from $50 to $70 a month for a single line. That’s quite a burden for some customers who will have to look to prepaid plans or resellers to get cheaper service. Other carriers rushed to meet T-Mobile’s $50 2GB plan when it was introduced, which has served as an entry-level price range for occasional data dabblers. If those carriers don’t immediately raise prices as well, they will undercut T-Mobile. That could provoke an increase in cancellations among customers buying on price, not plan features. T-Mobile is banking consumers will appreciate unlimited data enough to pay extra for peace of mind.

Jackdaw Research found customers enrolled in 2GB and 6GB T-Mobile plans, T-Mobile ONE represents a price increase. Those signed up for 10GB or unlimited service will pay the same or slightly less with T-Mobile ONE.

Jackdaw Research found customers enrolled in 2GB and 6GB T-Mobile plans will see a price increase with T-Mobile ONE. Those signed up for 10GB or unlimited service will pay the same or slightly less.

sprintlogoSprint: Unlimited Freedom: Two Lines of Unlimited Talk, Text, and Data for $100/month

Not to be outdone by T-Mobile, Sprint CEO Marcelo Claure today announced his own company’s overhaul of wireless plans, featuring the all-new Sprint Unlimited Freedom plan, which offers two lines of unlimited talk, text and data for $100 a month, with no access charges or hidden fees.

Starting Friday, Aug. 19, Sprint customers can sign up for the new plan, which costs $60 for the first line, $100 for two lines, and $30 for each additional line, up to 10. Sprint pounced on the fact its Unlimited Freedom plan for two is $20 less than T-Mobile charges.

Otherwise the two plans are remarkably similar — too similar for the CEOs of both companies that spent part of today engaged in a Twitter war.

T-Mobile CEO John Legere and Sprint CEO Marcelo Claure traded tweet barbs this morning.

T-Mobile CEO John Legere and Sprint CEO Marcelo Claure traded tweet barbs this morning.

“Sprint’s new Unlimited Freedom beats T-Mobile and AT&T’s unlimited offer – only available to its DirecTV subscribers – while Verizon doesn’t even offer its customers an unlimited plan,” read Sprint’s press release.

unlimited freedom“Wireless customers want simple, worry-free and affordable wireless plans on a reliable network,” said Marcelo Claure, Sprint president and CEO. “There can be a lot of frustration and confusion around wireless offers, with too much focus on gigabytes and extra charges. Our answer is the simplicity of Unlimited Freedom. Now customers can watch their favorite movies and videos and stream an unlimited playlist at an amazing price.”

Sprint has also essentially joined the T-Mobile optimization bandwagon, limiting streaming video to 480p, but it goes further with optimization of games — limited to 2Mbps, and music — limited to 500kbps. There does not seem to be any option to pay more to avoid the “optimization” and Sprint is not offering a tethering option with this plan.

“While we initially questioned using mobile optimization for video, gaming and music, the decision was simpler when consumers said it ‘practically indistinguishable’ in our tests with actual consumers,” said Claure. “In fact, most individuals we showed could not see any difference between optimized and premium-resolution streaming videos when viewing on mobile phone screens. Both provide the mobile customer clear, vibrant videos and high-quality audio. Mobile optimization allows us to provide a great customer experience in a highly affordable unlimited package while increasing network efficiency.”

sprint

boostAlso, beginning Friday, Aug. 19, Sprint’s leading prepaid brand, Boost Mobile introduces its own unlimited offer, Unlimited Unhook’d:

  • Unlimited talk, text and optimized streaming videos, gaming and music
  • Unlimited nationwide 4G LTE data for most everything else
  • $50 a month for one line
  • $30 a month for a second line up to five total lines

In addition to the Unlimited Unhook’d plan, Boost Mobile will also unveil the $30 Unlimited Starter plan, which includes unlimited talk, text and slower network data (2G or 3G) with 1GB of 4G LTE data. Customers looking for more high-speed data can add 1 GB of 4G LTE data for $5 per month or 2 GB of 4G LTE data for $10 per month. Multi-line plans are also available for families looking to save some money for an additional $30 a month per line.

“There’s a lot of confusion and clutter in prepaid, but is doesn’t have to be that way. Boost Mobile is offering the simplest solution with plans that are easy to understand,” said Claure. “Boost has something for everyone, whether you need a truly unlimited plan with 4G LTE data or want to save extra money with a low-cost plan.”

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