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HissyfitWatch: Witch Hunt – T-Mobile Declares War on “Abusive LTE Tethering”

heavy user

Burn Her! T-Mobile CEO John Legere announces a data hog crackdown.

T-Mobile’s CEO has declared war on about 3,000 current customers caught “stealing data from T-Mobile” by using workarounds to avoid T-Mobile’s tethering usage allowance.

T-Mobile customers with unlimited 4G LTE plans get a fixed allowance to be used for tethering when using the Smartphone Mobile HotSpot feature, which allows laptops, tablets, and other wireless devices to share a T-Mobile wireless data connection.

“These violators are going out of their way with all kinds of workarounds to steal more LTE tethered data,” said John Legere, CEO of T-Mobile USA. “They’re downloading apps that hide their tether usage, rooting their phones, writing code to mask their activity, etc. They are ‘hacking’ the system to swipe high-speed tethered data.”

Legere claims the “clever hackers are willfully stealing for their own selfish gain” and are running up as much as two terabytes of usage a month over T-Mobile’s network. Legere thunders he won’t allow this on his watch and the company is starting a campaign of countermeasures this week to go “after a small group of users who are stealing data so blatantly and extremely that it is ridiculous.”

Legere was not specific about how T-Mobile identifies customers it considers to be abusing its network, but a new FAQ on the carrier’s website explains what will happen to those deemed to be exploiting workarounds to exceed T-Mobile’s standard 7GB tethering allowance:

We’re first warning these customers that they’re illegally using more data than they bought. We hope folks will stop on their own so they can keep their current plan. These customers are on an unlimited 4G LTE smartphone plan that includes a set amount of Smartphone Mobile HotSpot data, but they’re using workarounds to make their tethering look like smartphone usage which helps them use significantly more 4G LTE tethering than their plan includes.

Customers who continue to do this will be warned, then lose access to our Unlimited 4G LTE smartphone data plan, and be moved to an entry-level limited 4G LTE data plan.

Legere

Legere

Legere is clearly concerned the crackdown could be interpreted by the Federal Communications Commission as a Net Neutrality violation.

“These abusers will probably try to distract everyone by waving their arms about throttling data,” Legere wrote. “Make no mistake about it – this is not the same issue. Don’t be duped by their sideshow. We are going after every thief, and I am starting with the 3,000 users who know exactly what they are doing. The offenders start hearing from us tomorrow. No more abuse and no risk to the rest of our customers’ experience. It’s over. If you are interested, you can find more info in our [FAQ].

The FCC has no rules prohibiting usage caps, but the issue of speed throttling is less settled and Legere’s comments are intended to frame the issue in terms of data theft and violations of the company’s terms and conditions.

Carriers are often less lenient with hotspot usage because desktop computers and laptops often consume much more data than portable handheld devices like tablets and smartphones. T-Mobile admits that customers who need to consume a lot of data should find another ISP:

[Wired] Broadband services would be a better solution for customers who need more high-speed for tethered devices.

Wi-Fi Woo-Woo – Quack Science Convinces Boston Family to Sue School Over Wi-Fi/EHS Allergy

emf shield

Space age beekeeping or Total EMF protection? Shielding your head just got easier. Slip this sheer and roomy HeadNet on and it will “provide 99.7% shielding across the frequency range 10MHz – 3GHz and >94% at 5.6GHz,” thanks to its generous use of ‘Silver Supershield’ double Silver-plated nylon, claims its manufacturer. Your price: $80

A Boston area boarding school’s failure to accommodate a 12-year-old student’s allergy to Wi-Fi will force the Fay School to hire attorneys to defend itself in a lawsuit brought under the Americans with Disabilities Act.

All three plaintiffs have been kept anonymous, but their lawsuit clearly identifies what is responsible for their son’s headaches, itchy skin and rashes — the school’s Wi-Fi system.

The Courthouse News Service:

In spring 2013, the Fay School installed an industrial-capacity WiFi network into the school that was accessible in all classrooms. After the new network went live, “G” began coming home with headaches, itchy skin and rashes that would recede in the evening, and vanish over the weekend and during summer vacation when he was not near the school, the lawsuit claims.

When the child returned to school for the 2014 academic year, his symptoms got worse, resulting in him having to regularly leave school early.

The parents found that their child’s condition may have been caused by exposure to increased electromagnetic activity after learning that, right before their child began suffering the symptoms, the school had installed a new, industrial-strength WiFi network.

“Exposure to Wi-Fi emissions at the levels emitted by the type of Wi-Fi to which the children are exposed in Fay classrooms causes, in those persons affected, most notably children, the symptoms of EHS, which include severe headaches, fatigue, stress, sleep disturbances, skin symptoms such as prickling, burning sensations and rashes, muscle aches, nausea, nose bleeds, dizziness and heart palpitations,” the lawsuit states.

The Omega EMF protector comes in Ethernet or Wi-Fi versions. A similar device opened up by an RF engineer was found to contain plastic beads.

The Omega EMF protector comes in Ethernet or Wi-Fi versions. A similar device opened up by an RF engineer was found to contain plastic beads. A reviewer claimed it was also effective at repelling “the lizard people from touching me in the night.”

People claiming to suffer from Electromagnetic Hypersensitivity Syndrome, or EHS, claim wireless signals cause them pain and suffering. Others argue the condition also afflicts those exposed to electric lights, juicers, Keurig coffee makers, garage door openers, washing machines, microwaves, laptops, blenders, air conditioners, cotton candy makers, vacuum cleaners, hair dryers, televisions, dishwashers, and fans. Some believe that mountains are effective blockers of radiation and have relocated to the Catskills or West Virginia to escape decent cell phone coverage and high quality broadband.

While medical authorities consider the symptoms reported by sufferers to be credible and believable, most experts strongly doubt electromagnetic activity is the cause. In the 1980s, high tension, high-capacity power lines were usually implicated by sufferers. But as cell phones became common, cell towers became the new targets. The presence of Wi-Fi, especially in public buildings and the classroom, have fueled the fire under a small army of activists dedicated to getting those services shut down, fearing their health impact on children.

To test the science, a 2009 double-blind study conducted by the National Institutes of Health on intolerance to electronic signals quickly found that when test subjects had no knowledge of whether they were being exposed to electromagnetic activity, all the symptoms of hypersensitivity vanished.

The Boston area family sued after claiming school officials had grown hostile over their requests to “test their student’s classroom.” The family also requested the school’s Wi-Fi network be disabled in all classrooms where their child was present and have wired Ethernet Internet access installed instead.

The World Health Organization’s firm conclusion that there is no link between EHS and Wi-Fi signals was not enough to assuage those worried about wireless. The WHO also declared EHS is not a credible medical diagnosis. Now, this does not mean the symptoms of people who think they have EHS are not real. But with no serious evidence wireless signals are the cause, skeptics suggest another environmental cause is more likely responsible for symptoms.

The two best ways to protect your pets from unnecessary exposure to cell phone signals. 1) Become a Sprint customer. 2) Buy this dog collar for $239.

The two best ways to protect your pets from exposure to robust cell phone signals: 1) Become a Sprint customer. 2) Buy this dog collar for $169.

Prior claims of EHS have often turned out to be exposure to mold and mildew, allergies, perfume exposure, poor air quality, or a yet to be diagnosed unrelated disease or medical condition.

But that has not stopped the creation of a cottage industry of companies marketing “EMF protection” devices to a worried public.

Until recently, an Amazon seller peddled the EarthCalm Omega WiFi Electromagnetic EMF Protection dongle (USB or Ethernet version, so evidently the plaintiff’s request to move the school to Ethernet-based Internet access would subject their child to additional pain and suffering.) A “Healthy Home Package” containing this and a “Home EMF Protection System” is priced to move at another seller for just $405.

A curious RF engineer received a similar wall unit years ago as a gag gift – one he could not resist opening.

“There was nothing more [inside] than a 1-inch long piece of masking tape folded over,” he wrote. “When I peeled apart the masking tape there were seven tiny plastic beads, like you would use on a necklace. That was it! That is their ‘circuit’.”

With the EarthCalm Omega out of stock, there are plenty of alternatives available from hundreds of websites that raise the alarm on the dangers of wireless signals and then make a living selling very expensive “protection” devices of questionable value.

The EMF meter is claimed to be useful for detecting EMF and for ghost hunting.

The EMF meter is claimed to be useful for detecting EMF and for ghost hunting.

Among them:

  • The Nova Resonator S-Series (in three fashion colors) — a metallic tube hung from a chain placed around the neck ($239)
  • The Quantum Cell: A metallic decal placed on the back of your cell phone, degrading or eliminating any cell phone reception ($129)
  • Aulterra the EMF Neutralizer: No it’s not a person, it’s a cheap cell phone signal degrader for the middle class ($29)
  • 4 Paws Pet EMF Protector: You wouldn’t let your dog be subjected to harmful Wi-Fi, would you? This dog collar is the “answer.” ($169)

The marketplace has grown so bloated with EMF protection sellers, they occasionally turn on one another. The manufacturer of the EMF Protection SmartShield360 Portable claims it is state-of-the-art, unlike those pushing “passive (not powered) pendants or stickers which claim to protect you.”

“SmartShield technology is light years beyond basic Schumann Resonance devices,” claims the manufacturer. It’s also light years away from the price of your basic Aulterra kit. SmartShield 360 will set you back $249 (plus $4.99 shipping).

In all seriousness, James “the Amazing” Randi believes such stories of wireless woo-woo can have a real cost.

“We do scientific research for a reason – to find out if things like EHS are real entities,” Randi writes. “What’s the use of such research if the results are going to be ignored.”

“Further, if people who believe they have EHS do not, they likely have some other condition – another condition which will go undiagnosed and untreated because they falsely believe EHS is the cause,” Randi adds.

Randi is also concerned the media treats these stories like catnip, sensationalizing the coverage without any sense of skepticism or fact checking.

“Reporters should have some sense of the topic they are covering, and whether or not they have sufficient background knowledge to know they are telling the true story,” he writes. “If you do a Google search for ‘electromagnetic hypersensitivity’ [one will easily find] Wikipedia, which includes a decent discussion of the lack of scientific legitimacy. [Another] is for a published review showing that EHS sufferers cannot detect EMF. [A] third is to Skeptoid’s debunking of EHS, and [a] fourth is to the WHO review.”

Public Service Commission Criticized Over Its Review of Telecom Service in New York

dpsConsumer groups and New York State Attorney General Eric Schneiderman are expressing concern over the performance of the New York Public Service Commission in its year-long review of telecommunications services in New York.

As Stop the Cap! shared in our own letter to the PSC, we share concerns about how the PSC is managing comments from the public and accepting testimony for a review that many find opaque.

The Connect New York Coalition has exchanged its own frank letters with the Commission for several months expressing concern about how the PSC is conducting its review. A letter dated July 6 summarized a year of difficulties dealing with state regulators:

We filed a Petition a year ago. It contained complaints and requests for action by the Commission. It was ignored for several months.

We requested a meeting with the Chair. The meeting was constructive. Several promises were made including the imminent production of a “roadmap” for a study, a promise that it would be concluded by the April 1, 2015 date committed to in a side letter, a promise of “robust dialogue”, and a promise that the concerns raised in the Petition would be included in Commission actions.

We mean no disrespect when we express astonishment at the June 26 letter. It is as though the Petition, the letters, the meetings and the promises have not languished in Commission inaction for a full year. It is as though we have received a “road map” and had participated in a “robust dialogue”. It is as though the Commission in its documents and “questions” has addressed the issues and complaints contained in the Petition. It is as though the Commission produced the Study it promised in the side letter. None of these things has happened.

[…] A constructive relationship, based on civility and mutual respect, is not advanced by assertions that the Petition has been acted on as it should and as was promised. All of this is secondary to the sad realities that are faced by millions of New Yorkers whose telecommunications systems are neither socially nor economically adequate. The system, for many, operates in violation of the laws of the state.

Schneiderman

Schneiderman

“Issues of misallocation of monies, inadequate basic service requirements, disinvestment in the copper systems, failure to build out promised telecommunications systems, failure to adequately measure the deterioration of service to millions of New Yorkers and others have been ignored by the Commission in spite of promises to take them seriously,” complained the Coalition in another letter dated June 25.

Late yesterday Attorney General Schneiderman added his views, nearly identical to our own and that of the Coalition:

“While the Staff Assessment of Telecommunications Services you issued on June 23 is a step toward fulfilling the legal requirement that the PSC undertake a comprehensive examination and study of the telecommunications industry in New York, it left many questions unanswered, questions unlikely to be answered through the public statement hearing process, as that process is non-adversarial,” Schneiderman wrote. “Therefore, to fully understand the impact of deregulation on consumers and businesses, I urge you to initiate a formal proceeding in accordance with Article 1, Section 5 of the Public Service Law and 16 NYCRR Part 3. Such a proceeding, in front of an administrative judge, provides for evidence-gathering, allows for cross-examination and counter-evidence, and concludes with a final order or decision by the PSC.”

The Attorney General wants answers to a series of questions many New Yorkers have asked for several years:

  1. competitionWhether there is adequate competition for broadband service throughout the various regions of New York State, and whether there are any areas that are still essentially cable monopolies;
  2. Whether telecommunications companies are making honest representations about infrastructure build-out;
  3. Whether consumers are satisfied with the various voice service options available to New York consumers; and
  4. Whether Verizon is adequately upgrading or repairing its copper wire infrastructure, which is especially critical for New Yorkers who rely solely on landline service (in the absence of other voice options).

In our view, the answers are:

  1. No, Yes
  2. No
  3. It depends on where you live in the state, which incumbent phone company you have, if you have cable as an option, and if you have adequate cell coverage.
  4. Evidently not, based on the long record of service complaints from consumers.

Late yesterday, the PSC indicated it was responsive to the complaints, issuing a notice extending the review process and comment window:

In recognition of these requests, this is to advise that the deadline to file comments is hereby extended 60 days until October 23, 2015 in order to facilitate meaningful input, accommodate various schedules, and promote the fair, orderly and efficient conduct of this proceeding. Following the submission CASE 14-C-0370 -2- of comments, Staff will consider the need for further process, which could include further Public Statement Hearings, Technical Conferences or other steps as deemed necessary. Notices would be issued regarding any such events.

Microsoft’s Windows 10 Updates Cost Some Users Hundreds of Dollars in Internet Overlimit Fees

badbillAbbes Nacef was not very happy when he opened his web browser a few days ago to see a message inserted at the top of his screen.

“Your Internet service has reached the maximum limit of allowable overage charges. If you wish to continue service, please contact our business office to discuss your account.”

Nacef, who lives in Monastir, a Tunisian city best known for its tourism, was surprised because it was the first sign his Internet account had gone over the limit.

“While you can get uncapped DSL in Tunisia, it is not very good service and in my area it is not offered,” Nacef told Stop the Cap!. “Most in our neighborhood rely on a wireless ISP service which is less costly than 3G or 4G mobile service, but is capped and charges roughly $25 for each extra gigabyte allotment.”

Nacef’s call to his provider was not pleasant. He had already accumulated almost $180 in charges for the month of August, most in overlimit fees. The culprit was quickly identified — Microsoft Windows 10, which took several attempts to reach Nacef’s computer over a challenging Internet connection. But Nacef also learned his computer was repeatedly requesting updates from Microsoft, including three software patches that would not complete and were sent over and over for almost two weeks.

“It was the fifth call my ISP had received about this problem, and they were very annoyed also because Microsoft Windows 10 assumes you will use their Edge browser which defeats the early warning messages from my ISP that usage limits are approaching,” Nacef said. “When I switched back to my old browser the bad news was there, but it was too late.”

Windows-10His ISP has agreed to cut the charges in half and has warned all of its customers if they want Windows 10, the ISP will offer them a copy on a returnable USB memory device for free.

Nacef thinks the huge multiple download attempts to receive Windows 10 itself was responsible for most of the extra usage, but he is wary about the frequent software updates and the fact they are shared with other users by default.

That is what may have tripped up Rob DuGrenier who paid an exorbitant $150 this month for 1.5Mbps Internet service just to get a 75GB usage allowance for his immediate family in far northern Québec. The alternative was an overlimit fee of $20 for each 5GB allotment of usage over the usual 30GB allowance granted to “Power” users.

“Internet is not an option for our family for medical reasons, but this hurts,” DuGrenier writes. “It is definitely Windows 10 and there is something wrong with it because our ISP reports we are sending a lot more data than we are receiving, and there are no viruses or malware on the computers.”

Internet access is northern Québec is slow and costly.

Internet access is northern Québec is slow and costly.

His ISP now suspects Microsoft is using his connection to distribute software updates to a number of other users across northern Canada. When DuGrenier’s family disabled the option that opted them in to distributing Microsoft updates to other customers, upstream traffic dropped 98%.

“Were we sending Windows 10 itself all over northern Quebec and Nunavut? We just don’t know and Microsoft has not responded,” DuGrenier reports. “They have billions, I do not. They should be paying my Internet bill this month.”

The worst of the reported problems of bill shock are occurring in remote areas where Internet service can be a mixture of wired and wireless connections that are often slow and usually usage-limited. Windows 10 was designed to reduce bandwidth demand on wireless connections, assuming they would be metered. But how Microsoft detects which networks are wireless and metered and which may only partly be so is apparently a work in progress.

This morning, the Sydney Morning Herald reports at least one customer on a Pacific island was slammed with a catastrophically high Internet bill. Maureen Hilyard in the Cook Islands owes her ISP $390 this month, all because of automatic updates from Microsoft for Windows 10.

“In this context, where Internet access is both painfully slow and seriously expensive, these forced updates are almost literally forcing people off the Internet and are resulting in massive excess data charges,” EFA executive officer Jon Lawrence told the newspaper.

cook islands

The Cook Islands

Hilyard is a customer of Bluesky, primarily a satellite Internet Service Provider that dominates the Cook Islands, which have no other options for Internet access. A basic account costs $31.50 a month, but that provides just 3.5GB of data for the entire month. Automatic overlimit charges of $0.03 per megabyte accrue after the allowance is used up.

The most likely victims of Windows-induced bill shock subscribe to usage-limited wireless or satellite Internet services. While many providers throttle the speeds of customers who reach the usage limit, others charge penalty rates. Microsoft has no way to know which is true. Instead, the company claims it looks for evidence of a wireless connection before performing updates and when it finds one, it assumes it to be metered. But wired connections stay firmly in the unmetered category, whether they are usage-capped or not. Customers are invited to choose by digging through confusing settings menus.

Even more problematic is the built-in peer-to-peer technology that gives Microsoft’s servers a break and uses your Internet connection to share the latest Windows software updates with other Windows users across town and beyond. Microsoft has offered no provision to track this usage, but users can opt out with this advice from the Sydney Morning Herald:

Users can tweak their Windows 10 system settings by enabling a “metered connection” by searching for “Change Wi-Fi settings” in the start menu, clicking on “Advanced Options” and enabling “Metered connection.” This lets Windows 10 know the Wi-Fi connection you’re on is capped, so instead of forcing a software update onto your PC or tablet, it will notify you first. You can then choose to delay the upgrade until you are on an uncapped connection, or until you’ve rolled over into a fresh month of data.

This workaround only applies to Wi-Fi connections, however, not Ethernet connections.

A second workaround actually comes in an update which Microsoft itself released. It’s a bit more fiddly though, as it involves manually uninstalling driver updates and then downloading a special troubleshooter app to prevent them from installing again automatically. The full instructions are available online.

AT&T Social Engineers Its Data Plans to Push You Towards a Family Mobile Share Plan

att changesAT&T is obviously a supporter of bringing its wireless customers closer together… in family plans, that is.

The wireless carrier has adjusted its wireless data plans once again, this time in response to recent changes at Verizon and to better compete against T-Mobile — the carriers AT&T’s plans now most closely resemble.

Pricing wireless data has become a marketing art. Push people into too-small data plans and they will get stung with bill shock. Give them ample data at a high price and customers feel justified trying to use every last bit of it to get their money’s worth. So what is AT&T up to?

Light User/Budget Customers Squeezed

att_logoIf you keep your phone turned off except during special occasions, road trips, and landline service outages, AT&T has a plan for you. Actually, Verizon thought up most of these plans first — AT&T is now matching them as a consequence of the “competitive” market.

AT&T’s $20 a month entry-level data plan offers a paltry 300MB of data, an amount so low it is likely to be consumed quickly just updating apps, reading web pages, and checking email. Although intended for light users, it is likely to expose customers to a nasty overlimit fee identical to the cost of the 300MB plan itself ($20 per 300MB). With embedded video advertising, bloated web pages, and growing-size apps that require regular upgrades, this kind of allowance is no longer tenable.

AT&T’s old 1GB and 3GB plans are also gone. Heads you may lose, tails AT&T usually wins. Customers on 1GB plans will now be herded into a 2GB plan that delivers twice the amount of data, for $5 more per month ($60 a year). That is a good value as far as wireless pricing is concerned, but only if you need twice the data. Customers with 3GB plans lose one-third of their allowance but get a $10 price break… unless they go over their limit and expose themselves to AT&T’s dastardly $15/GB overlimit fee. Then the savings evaporate.

The 2GB usage plan seems designed to keep you worried. Will you come perilously close to the overlimit fee again this month after watching those videos on the train? What about the 15 app updates that chewed through 300MB last week? With the average 4G iPhone customer in the United States using 1.8GB of mobile data each month during the summer of 2014, 2GB+ average usage is likely this year. Avoiding the overlimit fee will involve a costly leap into a more generous 5GB plan at a higher cost.

The New Normal: The 5GB Individual Plan/15GB Family Plan

family share

It won’t be hard for AT&T to sell most customers on either a 5GB data plan if they have an individual account or a 15GB shared data plan for families.

The 5GB plan is $20 less than the 6GB plan it replaces. It’s presumably AT&T’s idea of a “sweet spot” for customers with a single line choosing between a $30 2GB plan that might not include enough data or a much more expensive 15GB plan — the next step up AT&T’s data plan range.

A close look at AT&T’s price chart shows the plan options and prices are designed to encourage individual line customers to migrate into a family plan. Here’s how AT&T does it:

Two AT&T customers with individual plans now pay $75 each for unlimited talk and text and 5GB of data. That adds up to $150 a month. But watch what happens when those customers take their vows as AT&T family plan customers. First, they each get a $10 break on the Plan Access charge ($15/mo each instead of $25). Second, there is more justification to spend $100 on a data plan that offers a more generous 15GB of data. Let’s look at the math:

Monthly Plans (now) Monthly Plans (old) Data (now) Data (old) Plan Access charge
$20 $20 300MB 300MB $25
$30 $25/$40 2GB 1GB/3GB $25
$50 $70 5GB 6GB $25
$100 $100 15GB 10GB $15
$140 $150 20GB 20GB $15

Individual Plan (2 Lines)

2 x $25 Plan Access charge
2 x $50 5GB data plan

$150/month

Family Plan with 2 Lines

2 x $15 Plan Access charge
1 x $100 15GB data plan

$130/month — a $20 savings

Family plan customers pay $20 less and get an extra 5GB of mobile data. Customers choosing a data plan of 15GB or more also receive free unlimited calling and texting in Canada and Mexico.

Customers can be forgiven if they fall into the value trap – saving yourself into poverty. While AT&T’s recent price changes offer significant savings for certain customers, it is instructive to remember not so long ago AT&T charged $30 a month for unlimited mobile data, making the prospect of spending $100 for 15GB sanity-questionable. But that was then and this is now.

AT&T expects it will increase the amount of money it collects from each customer with the advent of these new plans, with the hope customers won’t remember back to the days where data usage was not monetized like a commodity.

Verizon Wireless Kills Phone Subsidies, Contracts: Some Customers Will Pay More

610px-Verizon-Wireless-Logo_svgThe days of the wireless phone subsidy are numbered with today’s announcement Verizon Wireless will end all smartphone subsidies and service contracts next week. It’s a path we’ve predicted at Stop the Cap! since at least 2013.

In an effort to “simplify” wireless pricing, Verizon Wireless is radically shaking up its wireless plans starting Aug. 13 — raising prices for its lightest users, ending the two-year phone contract, and requiring customers buy or finance their devices at the full retail price. Instead, customers will pay $650 up front for a phone like Apple’s iPhone 6, or finance it for around $27 a month for the next two years.

Phone plans are changing as well. Eliminated are “individual” and “family plans.” In their place, there is just one plan with four data options:

  • Access Fee (includes unlimited voice/text): $20/mo per phone, $10/mo per tablet or portable hotspot, $5 for connected devices (eg. watches)
  • Shareable Data Option: $30 (Small – 1GB), $45 (Medium – 3GB), $60 (Large – 6GB), or $80 (X-Large – 12GB)  —  Overlimit Fee is $15/GB

Average and heavier users will save a few dollars with Verizon’s new plans. The “Medium” plan is $5 less than Verizon used to charge and the “Large” plan is $10 less. You get 2GB of extra data for your $80 comparing Verizon’s older plan and its newer one. The benefits seem less compelling when you realize just a few years ago Verizon charged $30 for unlimited use data plans.

Budget customers will find Verizon’s new plans the least attractive. Customers with 6GB or less data plans used to pay a $15 access fee. Now they will pay $5 more per phone. Those who want Verizon’s cheapest 500MB plan for $20 are out of luck. That plan is being dropped, according to Verizon, because customers were confused over the difference between MB and GB. Customers now on that low-end plan will probably be able to keep it, but may eventually have to choose a “Small” data plan for $10 more per month. Budget customers used to pay around $35 a month. Now they will pay at least $50.

Heavy data users may be concerned Verizon’s top data plan tops out at 12GB. The company plans to privately offer bigger data buckets to customers, but only if they visit a Verizon Wireless store to discuss their needs.

Current customers still on contract will not see any changes immediately. Verizon will continue to charge the $40 a month access fee for contract customers until the contract expires, after which the fee will drop to $20. Customers on More Everything plans can stick with their existing plans for now, as well as add lines. There are no plans to force customers to change service plans at this point.

Expect AT&T to take a similar path towards the elimination of subsidized devices. Because customers will likely finance their $600+ smartphones, it isn’t likely consumers will face dramatically changed pricing as a result of Verizon’s plan changes. But device manufacturers can no longer get away with promoting their phones at a $200 price point. In fact, the sticker shock of the retail price of smartphones may eventually force manufacturers to produce more affordable phones for the marketplace.

Sprint Chairman Calls U.S. Wireless Networks “Very, Very Bad”

Masayoshi Son

Masayoshi Son

Sprint, for perhaps the 5th time in three years, is promising a major network turnaround in the near future that will boost their network’s performance and potentially restore the wireless provider to third place in the U.S. wireless market.

Masayoshi Son, who serves as both the CEO of Japanese carrier SoftBank and chairman of Sprint proved defensive about Sprint’s performance, which recently dropped to America’s fourth largest carrier after trading places with T-Mobile, despite posting improved financial results for the quarter.

Once again, Son told investors the state of America’s wireless network coverage was downright lousy.

“When I come to the [United] States, this network is not something you should be proud of,” Son said on a Sprint conference call with analysts. “It’s very, very bad.”

John Legere, the outspoken CEO of T-Mobile, took to Twitter to berate his smaller competitor.

“Does that make Sprint’s network ‘VERY, very, very bad’ or just completely terrible,” Legere wrote. “It’s easy to boast about your network in Japan, @masason. That’s 146k square miles, or basically most of California. #notthathard ;),” he added.

sprint all inSon has been relatively quiet since failing to inspire regulators to allow him to merge Sprint and T-Mobile into a single company to help both compete more effectively against giants AT&T and Verizon Wireless. After promising to invest vast sums to improve Sprint’s relatively poor performing network and coverage area, Son seemed to disappear and Sprint started losing more customers than it could add. Some have expressed frustration about Sprint’s seemingly endless promises a network turnaround was just around the corner, but never seemed to actually materialize. Many have since left for T-Mobile, which added 2.1 million new customers this year.

Although this quarter may signal Sprint is turning things around by adding 675,000 net new customers, analysts question whether Sprint’s drop to fourth place and the amount of spending that will be required to improve its wireless network could lead Son to ditch his shares in Sprint two years after acquiring an interest in the carrier. Son himself admitted he lost confidence in Sprint after the idea of a merger with T-Mobile flopped. But now he claims he is back, personally overseeing plans for Sprint’s next generation network with U.S. based engineers every night between 10pm-2am Japan time.

Customers seem unconvinced, peppering comment sections with reactions ranging from surprise Son was willing to criticize Sprint’s network (a criticism many agreed with), to exasperation that Sprint has promised better service for years and has yet to provide it.

“You know your carrier’s service sucks when even the CEO says it sucks,” commented one reader.

The Philippines: Free Market Broadband Paradise or Deregulated Duopolistic Hellhole?

special reportFans of the “hands-off” approach to broadband oversight finally have a country where they can see a deregulated free marketplace in action, where consumers theoretically pick the winners and losers and where demand governs the kinds of services consumers and businesses can get from their providers.

That country is the Philippines, which has taken the libertarian free market approach to Internet access in a dramatic leap away from the authoritarian Marcos era of the 1980s.

The Deregulation “Miracle”

Until 1995, the Philippines Long Distance Telephone Company (PLDT) maintained a 60-year plus government-sanctioned monopoly on telecommunications services. Its performance was less than compelling. Establishing landline service took up to 10 years on a lengthy waiting list. Getting a phone line was the first problem, making sure it worked consistently was another. Just over 10 years after the United States formally broke up AT&T and the Bell System, the government in Manila approved RA 7925 – the Public Telecommunications Policy Act of 1995, breaking PLDT’s monopoly and establishing a level playing ground for each of 11 regions across the country and its many islands in which private companies could compete with PLDT for customers.

philippinesTo attract investment and competition, the government declared all value-added services like Internet access deregulated and guaranteed the complete privatization of all government telecom facilities no later than 1998. It also initially limited the number of companies that could compete against PLDT in each region to two new entrants. The government felt that would be necessary to attract competitors that knew they would have to quickly invest millions, if not billions, to build telecom infrastructure in the Philippines. It would be hard to make a case for investment in a region where a half-dozen companies all engaged in a price war fighting for customers while stringing new telephone lines and building cell towers.

To prevent cherry-picking only the wealthiest areas of the country, the government declared its desire for a privately funded nationwide telecom network and used the 11 regions, combining urban and rural areas in each, to get it. Competitors were required to support at least 300,000 landlines and 400,000 cellular lines in each region. That assured new networks could not simply be built in urban areas, bypassing smaller communities. After building their networks, companies largely operated on their own in a mostly-free deregulated market, slightly overseen by the National Telecommunications Commission (NTC) — the Philippines equivalent of the FCC.

The early years of telecom deregulation seemed promising. PLDT, much like AT&T in the United States, kept the lion’s share of customers (67.24%) after deregulation took effect, but new competitors quickly captured one-third of the market. But with lax regulation and oversight, some of the Philippines’ most powerful families, many benefiting under years of the Marcos dictatorship, managed to gain influence in the newly competitive Philippines telecom business. In the United States, telecom competition meant a choice between Sprint, MCI, AT&T or others. In the Philippines, you dealt with one or two of nine powerful family owned conglomerates, each operating with a foreign-owned telecom partner. It would be like choosing between companies owned by the Rockefellers, the Astors, the Carnegies, or the Morgans.

pldtThe NTC remained more “hands-off” than the FCC, avoiding significant involvement in critical interconnection issues — how competing telephone companies handle calls from subscribers of a competing provider. That was last an issue in the United States in the early 1900s, where rare independent competitors to the rapidly consolidating Bell System faced a telecom giant that initially refused to handle calls from customers of other companies. American regulators eventually demanded interconnection policies that guaranteed customers could reach any other telephone customer, regardless of what company handled their service. In the Philippines, the NTC eventually mandated less-demanding access, allowing companies to charge long distance rates to reach customers of other companies. In the 1990s, it was not uncommon to find businesses maintaining at least two telephone lines with different companies to escape long distance expenses and stay accessible to all of their potential customers.

PLDT initially fought the opening of the marketplace but benefited handsomely from it once it took effect. The company got away with setting sky-high interconnection rates to connect calls from other smaller providers to its customers. It also made access to its network a minefield of bureaucracy and often required competitors to sign unfair revenue sharing agreements.

It is Cheaper to Buy Out the Competition Instead of Competing With It

competition-issues-in-philippine-telecommunications-sector-challenges-and-recommendations-3-638

(Image Courtesy: Mary Grace Mirandilla-Santos/LIRNEasia)

The investment community eventually balked at the cost of constructing competing telecommunications networks, especially after the dot.com crash in 2000, and a drumbeat for industry consolidation through mergers and acquisitions quickly grew too loud to ignore. Investors fumed over the amount of money being spent by providers to meet their service obligations in the 11 subdivided regions. Instead of building redundant or competing infrastructure, allowing competitors to merge would cut costs and enhance investor return. The NTC let the marketplace decide, as did the government, and it led to a frenzy of industry consolidation that ran far beyond what the FCC and American Justice Department would ever tolerate.

In 2011, the government backed a colossal merger that brought together the wireless networks of Pilipino Telephone Corporation, PLDT, and Smart under the PLDT brand. The three former competitors became one and controlled 66.3% of the Philippine’s wireless customers. The merger was comparable to allowing Verizon to buy out Sprint.

Additional mergers in response to the super-sized PLDT rapidly reduced the competitiveness of Philippine’s telecommunications marketplace to a duopoly. Just two companies — PLDT, Globe, and their respective house brands — dominate landline, DSL, cable, and wireless telecommunications service in the Philippines. The investment community celebrated the deal’s approval as a lucrative goldmine of future revenue gains from a less competitive market.

Philippine Broadband: Hey, It’s at Least Moderately Better Than Afghanistan

competition-issues-in-philippine-telecommunications-sector-challenges-and-recommendations-8-638

(Image courtesy: Mary Grace Mirandilla-Santos/LIRNEasia)

Broadband performance, under any measure other than financial success, has proved abysmal for Philippine consumers and businesses. The country’s broadband speeds are among the worst in the world, only beating Afghanistan in many speed tests. Look the other wayoversight led to a bribery scandal in 2007 that threatened to bring down the government. Officials exploring the development of a National Broadband Network were accused of soliciting kickbacks from Chinese equipment vendor ZTE, which would have been responsible for supplying equipment for the project. The government canceled the project as the scandal widened and some of the principals left the country or in at least one case were kidnapped.

Eight years later, broadband in the Philippines would be considered a North American nightmare. The free market approach has led to free-flowing profits and a profound lack of marketplace competition, with broadband ripoffs and broken promises rampant across the country.

Although both PLDT and Globe Telecom are spending large sums on infrastructure, much of it benefits their very profitable wireless networks and business customers. Despite the investments, residential customers are stuck with some of the world’s worst broadband speeds and performance.

An independent Quality of Service test revealed the bad news all around:

The findings of the Philippine QoSE tests were expected, but nevertheless still disappointing.

The best performing among the three ISPs delivered only 21% of actual versus advertised speed on average. This same ISP also offered at least 256kbps download speed (generally accepted definition of broadband) only 67% of the whole time it was tested, falling short of the required 80% service reliability.

The Broadband Commission defines the core concepts of broadband as an “always-on service” with high capacity “able to carry lots of data per second.” While there is no official definition of broadband locally, the Philippine Digital Strategy 2011-2016 defines broadband Internet service as 2Mbps download speed.

Finally, like the last nail in the coffin, Philippine ISPs performed the worst in terms of value for money when compared to select providers in South Asia and Southeast Asia. The highest value given by any of the three Philippine ISPs tested was a measly 22kbps per US dollar. This figure is too low when compared to similar mobile broadband ISPs that offer 173kbps per dollar in Jakarta, Indonesia and 445kbps per dollar in Colombo, Sri Lanka.

These results have huge implications on truth in advertising, consumer welfare, and the need for appropriate regulation.

My DSL Service is So Bad I Prefer 3GB Usage-Capped Slow Wireless Instead

senloren

Legarda

Home DSL broadband is so bad that customers have increasingly dropped service in favor of tightly managed wireless service. Companies report DSL customer losses over the past few years, with no end in sight.

The telecom regulator has generally just shrugged its shoulders at the situation, suggesting competition between equally poor providers will somehow resolve the problem. That view is applauded by service providers who claim the Internet is “just a value-added service” not essential to basic living needs. But consumer groups wonder why providers are allowed to make false advertising claims about the speed of their service with no repercussions. A range of position papers appealing to the government to create a meaningful minimum broadband speed have been introduced and some are being pushed by members of the Philippine Senate.

Senator Loren Legarda joined scores of other frustrated customers complaining about unreliable and expensive Internet in the country. In a 2014 hearing Legarda complained she had once again lost her DSL Internet connection in her office and her wireless connection was so slow it was unusable.

“As we speak now, there is no Internet connection in my office,” Legarda said. “I received a message this morning from my staff on my way here because I may be e-mailing, etc. And for someone whose deadline was yesterday, I always want things done fast and I’m sure many of you want that efficiency too to serve our people better.”

http://www.phillipdampier.com/video/ANC Poor Broadband Internet 5-14.flv

ANC aired this story about Sen. Legarda’s broadband problems and how Philippines’ providers oversell their networks back in 2014. (4:56)

We Oversold Our Networks So Sue Us, Except You Can’t

Providers blame the problem on oversold networks that attempt to manage too many paying customers on an inadequate network. In other words, they blame themselves with little fear any regulator will create problems for them.

Wireless service is no panacea either. Customers in the Philippines face draconian “fair use policies” on so-called “unlimited plans” that leave them throttled after 1GB of usage per day or 3GB of usage per month, whichever happens first. Providers suggest the policy is a benefit, promising them a better user experience. Besides, they suggest, even those that run into the speed throttle can still browse the Internet, albeit at as speed resembling dial-up:

Your internet speed will slow down if you use up 1GB of data for the day, or accumulate 3GB of data usage for the month.

If you hit the 1GB/day threshold, you’ll experience slower speed, but no worries because as we mentioned above, you can still surf! You’ll move up to normal speed at midnight. If you hit the 3GB/month threshold, your speed will move up to normal speed on the next calendar month (not based on bill cycle).

With a stifling usage allowance, shouldn't providers in the Philippines be offering better speeds?

With a stifling usage allowance, shouldn’t providers in the Philippines be offering better speeds?

Say Hello to the “Promo Pack” – Your Net Neutrality Nightmare Come True

Remember the scary ads from Net Neutrality proponents promising a future of Internet add-ons that would charge you to surf theme-based websites without facing network slowdowns or stingy usage caps if Net Neutrality protections were not forthcoming? In the Philippines, the nightmare came true. Mobile providers sell added cost “promo packs” that bundle extra throttle-free usage with theme-based apps. A package with Spotify runs about $6.50US a month and includes 1GB of usage. Anyone can buy a Spotify premium membership in the Philippines for around $4.37US without the add-on. But even worse are app-based promo packs that bundle free-to-download-and-use apps in the U.S. with special designated usage allowances.

Want to use Google Maps on your wireless provider? A “promo pack” including it costs around $2.17 a month and includes 300MB of usage. That money doesn’t go to Google — it stays in the pocket of the provider – Globe Networks. Twitter will set you back $4.37US a month and includes 600MB of usage, which seems odd for a short message service when contrasted with an identically-priced promo pack for Facebook, that needs the extra usage allowance more than Twitter likely would. But then they also get you for Facebook Messenger, which costs an extra $2.17US per month and comes with its own usage allowance — 300MB.

"What If" actually "Is" in the Philippines.

“What If” actually “Is” in the Philippines.

Globe-Telecom3While segmenting out popular mobile apps for special treatment, Philippine mobile providers have also taken Verizon and AT&T’s lead, pushing plans like myLIFESTYLE that bundle unlimited text and phone calls with expensive data plans.

Lifestyle Promo Packs:

Lifestyle Bundle

Price (Philippine Peso)

Consumable MBs/GBs

Description

Spotify

299

1GB

Premium membership to Spotify, with 1GB data
Work

299

1GB

Access to Gmail, Yahoo Mail, Evernote, + 10GB Globe Cloud Storage
Explore Bundle

99

300MB

Access to Agoda, Trip Advisor, Cebu Pacific, PAL
Navigation Bundle

99

300MB

Access to Waze, Grab Taxi, Google Maps, MMDA app, Accuweather
Shopping Bundle

299

1GB

Access to Zalora, Amazon, Ebay, OLX, Ayosdito
Facebook

199

600MB

Access to Facebook
Twitter

199

600MB

Access to Twitter
Viber

99

300MB

Access to Viber
FB Messenger

99

300MB

Access to FB Messenger
Chat Bundle

299

1GB

Access to Viber, Whats App, FB Messenger, Kakao Talk, Line, WeChat
Photo Bundle

299

1GB

Access to Instagram, Photogrid, Photorepost, Instasize

Extra Add-ons:

Basic Price Description
Consumable 100 Stackable Amounts of P100 denomination consumables
Unli Duo 299 Unlimited Calls to Landline/duo
Unli Txt All 299 Unlimited Texts to other networks
Unli iSMS 399 Unlimitend International SMS to one intl. number
Unli IDD 999 Unli IDD calls to one intl. number
DUO International 499 Unlimited calls to US landlines

The Philippines Should Regulate Under the American Example vs. The Philippines Should Not Regulate Under the American Example (It’s Obama’s Fault)

Lincoln_MemorialProviders in the Philippines have learned a lot from America’s telecommunications lobbyists. Their advocacy campaigns revolve around the theme that the United States has the best wireless networks in the world, developed under a largely hands-off regulatory philosophy that the Philippine government should follow.

The government and regulators largely acquiesced to that campaign until this year, when that idea came back to haunt providers. Earlier this year, the Obama Administration and the FCC began taking a more hands-on approach to telecom regulation after recognizing the marketplace is not as competitive as providers suggest. Strong Net Neutrality enforcement, limits on mergers and acquisitions and strong signals marketplace abuses would no longer be tolerated are now being pushed in Washington by the White House and the Federal Communications Commission. Providers in the Philippines no longer advocate following the American model, but it may now be too late.

obamaThe NTC is close to issuing new minimum broadband speed and performance standards and is now listening to Filipino consumers that launched Democracy.net.ph to fight usage caps in the Philippines back in 2011. The NTC may soon require providers advertise average speeds and performance, not “up to” speeds nobody actually receives. Those getting poor service would be entitled to refunds or rebates.

That could be the first step towards a more activist NTC that may have learned the lesson that listening to the broken promises of better service through deregulation has resulted in some of the worst broadband performance the world has to offer. The Philippines took the advocacy arguments of the deregulation crowd and doubled down, not only allowing providers to lie and distort in their advertising, but also permitting massive industry consolidation reducing the choice for most Filipinos to just two providers for almost all telecommunications services. The government looked the other way as corruption turned into a scandal and today it is left with two very powerful conglomerates that deliver third world Internet access while pocketing the generous proceeds.

A Better Way to Better Broadband

A deregulated, free market only works where healthy competition exists. Too few players always leads to reduced innovation, poorer service at higher prices, and a corporate fortress deterring would-be competitors that are unlikely to be able to survive in a fair, competitive fight. For the Philippines (and by extension the United States) to fully benefit from healthy competition, large conglomerates must be broken up and further mergers must be prevented above all else. Until sufficient competition can self-regulate the marketplace, strong oversight is necessary to protect consumers from the abuses that always come from monopolies and duopolies. Charging wireless customers for free apps and suggesting 3GB of usage is equal to unlimited broadband are two places to start cracking down, quickly followed by an investigation into where investment dollars are being spent and for whose benefit. It seems like customers are not reaping any rewards in return for high-priced service.

The Philippine government should also continue exploring a National Broadband Network strategy that puts the country’s broadband needs above the profit motivations of the current duopoly. Governments build roads and bridges, airports and railways. Broadband is another infrastructure project that needs to be developed in the public interest. If private companies want to be a part of that effort, that is wonderful. But they should not be dictating the terms or holding the country back from what may be the biggest scandal of all — broadband that barely performs better than what the Taliban can get these days in Helmand province.

Consumers Storm FCC With 2,000+ Net Neutrality Complaints About Data Caps, Poor Service

angry guyIt didn’t take long for consumers to start flooding the Federal Communications Commission with thousands of complaints about poor Internet service, usage caps, and speed throttles.

The complaints arrived as the FCC began formally enforcing Net Neutrality by reclassifying broadband as a telecommunications service, subject to oversight by the federal agency.

Consumers used the occasion to deluge the commission about the sorry state of Internet access in the United States, whether it constituted a Net Neutrality violation or not.

National Journal obtained a sample of 50 complaints through a Freedom of Information Act request and it was clear data caps were at or near the top of the complaints list and consumers wasted no time slamming cable and phone companies over the practice.

“Our data should not be capped at 350[GB]!!!!” one consumer pleaded, likely a Suddenlink or Mediacom customer, which both have 350GB caps on certain speed tiers. “Please, please make data caps illegal!!”

fccNo more Netflix and Hulu watching for this family: “I have to tell my kids to stop using YouTube and other services and stuff they need for school so we don’t go over the cap,” another consumer wrote, explaining that their Internet-enabled home security camera uses up a significant amount of their monthly data. “By Comcast having this data cap, I don’t have a open Internet … I also think this data cap is very inaccurate, it goes up without anybody being home, and sometimes by a lot.”

Comcast also received heat for poor performing broadband service, with one customer forced to use Wi-Fi at a local McDonalds to take an online exam because Internet service at home was so poor.

“The Comcast modem is such crap that we can’t even access the Internet,” the consumer wrote. “I’m livid.”

AT&T was roasted for speed throttling its “unlimited data” wireless plan — a practice that already resulted in a $100 million fine from the FCC for misleading consumers. AT&T is appealing.

In all, the FCC reports it received about 2,000 complaints from consumers in June, the first month Net Neutrality rules took effect. The agency has just 30 days to respond to the complaints, most lodged using this online form. The FCC may be able to answer many with a form letter because poor service and usage caps are not strict violations of Net Neutrality, unless the FCC determines the practices “unreasonably interfere” with Internet access. AT&T’s speed throttling comes a lot closer to meeting that test, because many throttled customers report their wireless data service is rendered effectively unusable once throttled.

But the broad-ranging complaints may still prove useful, suggesting to the FCC stronger rules and oversight are required for a broadband market many consider barely competitive and often customer abusive.

Seeking comment, National Journal reported the National Cable and Telecommunications Association and the U.S. Telecom Association, which both represent major Internet providers and have sued to overturn the regulations, declined to comment on the complaints.

HBO NOW Available Today for Verizon Broadband Customers; Coming Soon to Mobile Video

hbonow_largeHome Box Office and Verizon today announced an agreement that allows Verizon to distribute HBO NOW — a service targeting Internet-only customers, across all of Verizon’s wired broadband networks, with the right to extend the service to Verizon Mobile customers in the near future.

Beginning today, HBO NOW is immediately available to all Verizon FiOS and High Speed Internet customers, starting with a 30-day free trial.

After signing up, Verizon customers can access the service by downloading the HBO NOW app on their Android phone or tablet, Amazon Fire Tablet, iPhone, iPad or Apple TV and selecting “Verizon” from the drop down menu of providers. Upon initial registration, customers sign in to watch their favorite HBO programming on their mobile device or on their computer at HBONOW.com. HBO NOW is currently available through Verizon to non-FiOS TV customers for a monthly subscription of $14.99 following the introductory free offer. FiOS TV customers can continue to purchase HBO, which includes access to the award-winning HBO GO app and access to HBO content on an anywhere, anytime basis on FIOS Mobile, through existing sales channels, including by using their FiOS TV remote control.

The agreement will allow Verizon to sell HBO NOW on its forthcoming mobile video platform, potentially under the umbrella of its Go90 service, expected to enter beta testing soon. No word on if Verizon’s mobile video platform will chew through your data usage allowance.

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