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T-Mobile Increases True Unlimited to 50GB a Month Before Speed Throttling

T-Mobile today announced it was boosting the amount of data its “unlimited data” customers can use before they are subject to speed throttling from 32GB to 50GB, effective Sept. 20, 2017.

“Meanwhile, Verizon and AT&T sit at a meager 22GB, meaning Un-carrier customers can use more than 2x the data before prioritization kicks in,” wrote Neville Ray, T-Mobile’s chief technology officer. “Now, 50GB of data usage means a T-Mobile customer is basically the top 1% of data users, and to put it in context, you could stream a full two hours of Netflix every single day – that’s 30 SD movies – and never even reach that point! You’d still have roughly 8GB to go.”

Like other wireless companies, “unlimited data” does not actually mean “unlimited.” Providers allot a certain allowance of truly unlimited data which, once exceeded, subjects the customer to speed-reducing “throttles” until the next bill cycle begins. T-Mobile claims it only throttles customers when a customer exceeds their “prioritization” allowance — 50GB as of tomorrow — and the cell tower they are using is currently experiencing congestion.

“When T-Mobile customers who use the most data hit these prioritization points during the month, they get in line behind other customers who have used less data and may experience reduced speeds,” Ray wrote. “But this impacts them only very rarely, like when there is a big line, and it resets every month. If you have a lot of congestion in your network (I’m looking at you, Verizon & AT&T), these lines can be long and deprioritized customers can be waiting a long time.”

No wireless company will provide data on which cell towers are likely to experience the most congestion, how many customers are speed throttled, or what speeds customers will get for how long before the throttle usually drops. But it is definitely harder to hit 50GB than 22 or 32GB, which means fewer customers are likely to find their wireless data connections throttled.

There has been no response yet from T-Mobile’s competitors — AT&T, Sprint, and Verizon.

Denver Spent Last Night Without Comcast; One Fiber Line Cut Wipes Cable Out

Phillip Dampier September 19, 2017 Comcast/Xfinity, Consumer News 3 Comments

A construction crew accidentally severed a single fiber optic cable on Monday and wiped out TV, broadband, and phone service for Comcast customers in metropolitan Denver.

The outage began at 4:30pm and lasted until around midnight when service was restored. Customers reported problems across Denver, Aurora, and other surrounding areas.

In these circumstances, Comcast does not usually give automatic bill credits for service outages — customers have to request them. But the widespread outage triggered a press release from Comcast claiming service credits will be automatic for “affected customers:”

We appreciate everyone’s patience during yesterday’s service outage in the Denver area. We regret the impact to our customers and we want to make it right. We are conducting an investigation into the cause and full impact of the outage. Upon completion of the investigation and identification of the impacted residential customers, we will automatically apply credits to their accounts.

If you are still experiencing issues with your service please send your account number and a brief description to our customer care team by clicking here or connect with an agent by phone or chat here.

If you want to be certain about receiving a credit, contact Comcast directly and ask for one instead of waiting for them.

Verizon Wireless Pushes Customer to Upgrade Data Plan Before Closing His Account

Danny, who lives in eastern Hancock County, Me., was more than a little confused by his September Verizon Wireless bill.

“You haven’t had an overage yet, but you recently cut it close,” warned the wireless company. Verizon’s definition of “cutting it close” was using 7.3GB of data in June, 7GB in July, and 7.4GB in August. His data plan includes an allowance of 12GB a month, and he only used just over half of that. Despite that, Verizon Wireless recommended he “get on the right plan.” For Danny, who already spends nearly $250 a month with Verizon, that would mean an upgrade to “Beyond Unlimited,” which offers “unlimited” 4G LTE data (subject to throttling once you head north of 22GB of usage a month) and 15GB of hotspot usage. The added cost? Another $52.99 a month, taking Danny’s bill to $300 a month.

A $300 cell phone bill might be a subject of a story all on its own, but what really got Danny’s attention was a billing notice (and letter mailed separately to his home), telling him his family was being kicked off Verizon Wireless and his account would be closed Oct. 17. The reason? He was “using a significant amount of data while roaming off the Verizon Wireless network:”

The same company inviting him to spend $52 more on an unlimited data plan has now dis-invited him as a customer because it didn’t like how and where he used the existing data plan that came with his account.

“I checked all of my data usage for the past 12 months,” Danny tells Stop the Cap! “Data usage was anywhere from 3.5GB (for three lines), up to 8.5GB.  We have rollover data as part of our plan (previous month of unused data rolls over to the next month). One month we used 16GB (that was the month that we drove to Texas and back), but still never went over the data we had available.”

Danny’s family uses their phones primarily in eastern Hancock County, a well-recognized trouble spot for cell phone dead zones until Wireless Partners, an independent cell tower owner/operator, partnered with Verizon Wireless to construct new cell towers using spectrum acquired by Verizon. Many of the cell sites were specifically designed to reach Downeast Maine, home to a number of small communities — some drawing tourists in the summer and others not. Wireless Partners’ new towers concentrated improved coverage along the Route 1 corridor between Ellsworth and Calais, and the Route 9 corridor known to the locals as the Airline — from Calais to Aurora, communities mostly east of Bangor on roads that take visitors to communities like Bar Harbor, right on the coast, or all the way to the New Brunswick border.

Downeast Maine

In this part of Maine, customers have to choose their cellular provider carefully because no company offers solid coverage in every community in the region. Those living in more tourist-focused communities or cities on the coast or one of the offshore islands often select U.S. Cellular, a regional carrier that has accepted millions of federal dollars from the Universal Service Fund to expand service. U.S. Cellular has added towers in communities like Bangor, Lewiston-Auburn, Ellsworth and the Presque Isle-Houlton area. But in many smaller towns, U.S. Cellular reception often disappears. The other two providers — Verizon Wireless and AT&T — focus most of their attention on cities like Portland, Augusta and Bangor, and along I-95 and in popular tourist areas on the coast.

“Unlike in many other states, if you choose the wrong carrier in Maine, you get absolutely no reception at home and perhaps one bar, if you are lucky, while on the road going to work or doing errands,” said Mike Fastler, a lifelong resident. “More than anywhere else I know, people here talk to their neighbors about what cell company works for them, and in a lot of towns almost everyone relies on the same company because it is the only one that delivers good reception.”

Fastler says in large parts of Downeast Maine east of I-95, Verizon Wireless has recently been the most solid, primarily because its network has been supplemented with towers built by Wireless Partners, which has prioritized improving cell reception around the inland areas of Washington and Hancock counties. The customers most likely of being booted by Verizon Wireless are customers that live and/or work in these two counties.

Customers like Danny have no idea Verizon considers them roaming abusers because when using cell towers run by Wireless Partners, Verizon devices show reception as part of Verizon’s home LTE network. No roaming indicators appear at all. But Verizon must still pay Wireless Partners when their customers use the third-party company’s cell towers. Verizon’s interpretation of its customer agreement allows it to terminate customers found roaming excessively. The question is, is 7GB of usage on a cell tower network built to augment Verizon Wireless’ coverage area be defined as “excessive.”

Verizon thinks so, telling Ars Technica:

“These customers live outside of areas where Verizon operates our own network,” Verizon said. “Many of the affected consumer lines use a substantial amount of data while roaming on other providers’ networks and the roaming costs generated by these lines exceed what these consumers pay us each month.”

But Danny and many other affected readers tell us their usage is well below 10GB a month. Some customers received termination notices and use an average of only 3GB a month and live near a Wireless Partners tower.

“It seems highly unlikely Verizon Wireless is incurring costs that are exceeding customers’ bills,” adds Fastler, who is also scheduled to be canceled on Oct. 17. “I used 1.5GB in August and never came close to hitting 5GB on our account over the last two years and I am being shut off.”

Fastler tried to sign up as a new Verizon Wireless customer with his wife to escape the account closure, but Verizon Wireless’ crackdown is complete and the company has at least temporarily stopped accepting new customers in areas where its third-party cell tower operators provide service.

“Give them your zip code and if it is in an affected area the system kicks the order out and won’t accept it,” reports Fastler.

Jason Sulham, a spokesperson for Wireless Partners confirms Verizon’s order lockdown on Maine Public Radio in response to questions about just how many customers are being removed from Verizon’s network.

“Verizon is restricting any new customers in those areas, so when you talk about what that final number is, what they have indicated is a final number of current customers who have received a termination letter. However, that doesn’t take into account the number of people who are in that area that can’t even sign up as new customers for the service, which is certainly not what was part of the original intent of building this network,” Sulham says.

The crackdown on rural coverage will make life exceptionally difficult for affected customers. Maine is America’s most rural state, according to the 2010 U.S. Census, with more than 61% of the population living in communities of less than 2,500. Many of those communities are spread far apart, making cell towers difficult to place to reach the largest number of customers. Some communities have access to just one tower. Others are only partly serviced, requiring users to go outside, run up nearby hills, or take a short drive to get a single bar of reception. That is why Verizon’s news has hit this part of Maine so hard.

For many locals, Wireless Partners solved a problem Verizon itself wouldn’t solve, and stronger cell coverage came as a result. Now Verizon threatens to recreate the original problem, and by limiting access to its partner networks, it could throw those companies’ business plans into the air and make them financially untenable.

Irma Survivors Direct Wrath at Charter/Spectrum for Non-Answers

Phillip Dampier September 18, 2017 Charter Spectrum, Consumer News, HissyFitWatch 3 Comments

The Orlando Sentinel got more than it asked for when it requested readers share their experiences with utility service outages in the wake of Hurricane Irma, which pounded Florida last week.

Readers reserved the most wrath for Charter Communications, which has evidently been less than forthcoming about service restoration.

“Give me something other than ‘we depend on somebody else and we have no idea about anything.’ […] That’s not an appropriate answer,” shared one Winter Park customer.

Charter’s spokespeople have blamed most of the outages on “the massive loss of commercial power that the state suffered.”

Customers seemed to buy that explanation until early this week, days after getting their power back.

“As I read their answer, it’s basically a lot of nothing,” opined the customer. “My experience with calling them is their answer is so vague [….] They could probably be a little more reassuring explaining ‘in this area the power comes from this place, and that place has an ETA of this, therefore some days later they expect this will be online.’”

“Our power was restored in the Crown Pt. Springs subdivision in Winter Garden on Monday afternoon, which we were very thankful for,” another reader said in an email. “I sure wish I could say the same thing about our Spectrum services (cable, internet and phone). As of right now, there is still no restoration.”

Still another: “Spectrum should be able to give their customers an estimated restoration time, like the power companies have. I haven’t seen one Spectrum truck in the Winter Garden or Ocoee area … not one!!! My husband drives a tractor-trailer for Coke and has seen one on the road this week. We are sick of them blaming the power companies for the reason that they can’t get into areas.”

Even Frontier Hints Without Major Broadband Upgrades, It’s Dead

Phillip Dampier September 18, 2017 Consumer News, Frontier 5 Comments

Frontier Communications spent $2 billion in 2014 to purchase AT&T’s Connecticut wireline business, believing it could make a fortune selling internet and cable television service to wealthy Nutmeg State residents over a network AT&T upgraded to fiber-to-the-neighborhood service several years earlier.

But thanks to a combination of management incompetence, cord-cutting, and Frontier’s competitors, the phone company’s dreams have turned bad in Connecticut, where the company lost hundreds of millions in the last three years along with at least 22% of its customers in the state. As a result, Frontier has turned a business that made AT&T $1.3 billion four years ago into one that earned Frontier $901.9 million last year.

Hartford Business notes Frontier’s biggest challenge is holding on to customers once they disconnect their landline service. In Connecticut between 2014 and 2016, Frontier lost 154,000 landline customers in the state, leaving just under 522,000 remaining landline customers. That is way down from the 675,000 customers AT&T had just before it sold the service area to Frontier. AT&T struggled with a similar problem, having more than one million landline customers in 2011, according to numbers from Connecticut’s Public Utilities Regulatory Commission (PURA). What made AT&T different is its investment in U-verse — AT&T’s answer to the challenge of lost landline customers. AT&T invested in a new fiber to the neighborhood network to boost broadband speeds and sell television service, giving departing landline customers a reason to continue doing business with AT&T.

For millions of Frontier Communications customers in its “legacy service areas” — owned and operated by Frontier for years, if not decades, those upgrades have been slow to come, if they have come at all. As a result, dropping Frontier service in favor of a wireless or cable company is not a difficult decision for many customers, and cable operators report significant growth where their only competition is DSL service from Verizon or Frontier.

Frontier’s own executives admit broadband upgrades are essential if Frontier is to survive the challenges of landline disconnects.

Customers are increasingly taking a pass on landline service.

“It’s a surprise to no one that we have voiceline declines in Connecticut,” Mark Nielsen, Frontier’s general counsel and executive vice president told the business newspaper. “The challenge is to build our internet and video business so as to offset the declines in voice. We are very committed to the Connecticut operation, we see great potential in it.”

That commitment is coming in the form of internet speed upgrades. Frontier’s primary competitors in the state are cable operators Comcast, Charter, and Cox, some offering speeds as high as a gigabit. Frontier is trying to compete by introducing speeds at or greater than 100Mbps, but so far only in a few parts of the state.

According to Nielsen, Frontier’s profitability is less important to investors than maintaining positive cash flow, which means assuring more money is coming into the operation than going out.

“Cash is what’s available to make investments to return capital to shareholders,” Nielsen said.

But that represents a conflict for Frontier, because many shareholders are attracted to the stock’s long history of returning money to shareholders in the form of dividend payouts. If Frontier has to invest more of its capital on upgrades and network upkeep, that can result in a dividend cut, which usually causes the share price to decline, sometimes dramatically. If Frontier can manage to invest less and cut costs, that frees up more money that can be paid to investors.

For the past several years, Frontier’s business plan has been to avoid spending large sums on network upgrades. But the company was willing to spend handsomely to acquire more customers from a three-state deal with Verizon that cost $10.5 billion. Frontier’s acquisition of Verizon landline customers in Florida, California, and Texas made sense for many shareholders because it would dramatically increase the number of customers served by Frontier, and that in turn would boost revenue and cash flow, from which Frontier’s dividend to shareholders would be paid. Frontier acquired a fiber rich, FiOS service area in all three states, which automatically meant the company would not need to undertake its own significant and costly upgrades.

But Frontier did have to transfer its newest customers from Verizon’s systems to those operated by Frontier. If a company spends enough time and money to protect customer data during such “flash cutovers,” they are usually successful. A company that attempts it without careful planning causes service to be disrupted, sometimes for weeks, which is exactly what happened after Frontier switched customers in the three states to its systems. Customers have never forgotten, and have left every quarter since the deal was first announced.

Financial analysts see where this is headed.

“Each and every quarter their revenues decline, and each and every quarter their customer totals decline,” David Burks, a financial analyst at Hilliard Lyons, told the newspaper. He called Frontier a company that is struggling. He added Frontier needs to stem revenue erosion. He downgraded Frontier’s stock last month after the company reported a second-quarter net loss of $662 million. He could not ignore what he called “disturbing trends,” such as an 11.5 percent year-over-year decline in total customers across Frontier’s entire operation.

 

To win new customers Frontier must improve its network with upgrades that will cost the company billions — spending that is certain to affect Frontier’s shareholder dividend. Even if it does spend money to upgrade, some analysts are wondering whether it is too late.

“The time to play catch up has passed, given the time to market advantage that cable has, and we expect continued pressures from cable as DOCSIS 3.1 steps up the speed advantage that cable already enjoys,” wrote Jeffries in a a report written about by FierceTelecom. “In our view, it is far too late for the ILECs to ramp spend to compete, particularly given high leverage and the significant cost required to expeditiously play catch up.”

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  • LG: It is now Sept. 23rd, and the same is true. I am using a neighbor's satellite internet while my Comcast is still out. Many promises of "by 7pm if n...
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  • Ed: I find it amazing that anyone expected Frontier to do anything differently...they have never been an invest and build company...they have always been ...
  • kim collins: i work for Frontier. And i have to say there is alot of people who still need their landlines because cell service is not available to them. Frontie...
  • Lee: Those who own the land leased to cell towers, they should NOT have sold the land, need to get good legal council on the terms of the lease if the comp...
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