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

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

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

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

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

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

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

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

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

What is AT&T Fixed Wireless Internet?

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

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

What speed does AT&T Fixed Wireless Internet provide?

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

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

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

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

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

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

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

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

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

Does weather affect service?

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

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

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

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

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

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

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

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

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

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

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

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

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

Wall Street Analyst: Cable Monopoly Will Double Your Broadband Bill

Thought paying $65 a month for broadband service is too much? Just wait a few years when one Wall Street analyst predicts you will be paying twice that rate for internet access, all because the cable industry is gradually achieving a high-speed broadband monopoly.

Jonathan Chaplin, New Street Research analyst, predicts as a result of cord-cutting and the retreat of phone companies from offering high-speed internet service competition, the cable industry will win as much as 72.2% of the broadband market by the year 2020. With it, they also win the power to raise prices both fast and furiously.

In a note to investors, Chapin wrote the number of Americans left to sign up for broadband service for the first time has dwindled, and most of the rest of new customer additions will come at the expense of phone companies, especially those still selling nothing better than DSL.

“Our long-term penetration forecast is predicated on cable increasing its market share, given a strong network advantage in 70% of the country (this assumes that telco fiber deployment increases from 16% of the country today to close to 30% five years from now),” Chaplin wrote.

Cable companies already control 65% of the U.S. broadband market as of late last year. Chaplin points out large cable operators have largely given up on slapping usage caps and usage pricing on broadband service to replace revenue lost from TV cord-cutting, so now they are likely going to raise general broadband pricing on everyone.

“Comcast and Charter have given up on usage-based pricing for now; however, we expect them to continue annual price increases,” Chaplin said. “As the primary source of value to households shifts increasingly from pay-TV to broadband, we would expect the cable companies to reflect more of the annual rate increases they push through on their bundles to be reflected in broadband than in the past. Interestingly, Comcast is now pricing standalone broadband at $85 for their flagship product, which is a $20 premium to the rack rate bundled price.”

Chaplin himself regularly cheerleads cable operators to do exactly as he predicts: raise prices. Back in late 2015, Chaplin pestered then CEO Robert Marcus of Time Warner Cable about why TWC was avoiding data caps, and in June of that year, Chaplin sent a note to investors claiming broadband was too cheap.

“Our analysis suggests that broadband as a product is underpriced,” Chaplin wrote. new street research“Our work suggests that cable companies have room to take up broadband pricing significantly and we believe regulators should not oppose the re-pricing (it is good for competition & investment).”

“The companies will undoubtedly have to take pay-TV pricing down to help ‘fund’ the price increase for broadband, but this is a good thing for the business,” Chaplin added. “Post re-pricing, [online video] competition would cease to be a threat and the companies would grow revenue and free cash flow at a far faster rate than they would otherwise.”

FCC Chairman Pai Leads Effort to Gut Lifeline Broadband Program for the Poor

Phillip Dampier March 29, 2017 Consumer News, Public Policy & Gov't No Comments

Ajit Pai, Chairman of U.S Federal Communications Commission, delivers his keynote speech at Mobile World Congress in Barcelona, Spain, February 28, 2017. REUTERS/Eric Gaillard

WASHINGTON (Reuters) – The U.S. Federal Communications Commission plans to reverse an Obama era decision that allowed it to approve companies to offer government-subsidized telecommunications services to low-income families, the agency’s Republican head said on Wednesday.

FCC chairman Ajit Pai has said telecoms service providers exploited loopholes in the “Lifeline” program for their own gain and states should decide which companies provide the internet, mobile phone and fixed line services to poorer Americans.

Democrats say Pai’s moves are aimed at winding down the program, but Pai has said he just wants to reform Lifeline to prevent fraud.

On Wednesday Pai said the commission would not approve about three dozen pending applications from companies that wanted to join Lifeline. He said the agency would not defend prior FCC actions with regards the program in a case pending before the U.S. Court of Appeals.

Twelve states have challenged the FCC’s order before the appeals court allowing the agency to approve companies to offer services. Pai said the FCC would ask the court to send the case back to the agency so it can reverse the decision and let states take the lead on approving companies.

“Congress gave state governments, not the FCC, the primary responsibility for approving which companies can participate in the Lifeline,” Pai said.

Putting the approval process in the hands of state utility commissions is essential to police against fraud, he added.

A group of U.S. House Democrats said Pai’s decision was an effort “to inflict death by a thousand cuts” to Lifeline, which has provided more than $1.5 billion in annual subsidies in recent years.

“Through lawyerly maneuvering, the FCC is trying to disguise its efforts to eliminate a system designed to make it easier for anyone who needs access to broadband to get it,” they said in a statement.

In March 2016, the FCC voted to expand the $9.25 a month telephone subsidy to include internet access. Pai said over 3.5 million Americans were currently receiving subsidized broadband service through Lifeline from 259 providers.

The FCC has estimated that 95 percent of U.S. households with incomes of at least $150,000 have access to high-speed internet, while less than half of households with incomes lower than $25,000 have Internet access at home.

FCC Commissioner Mignon Clyburn said Wednesday Pai’s decision means “low-income Americans will have less choice for Lifeline broadband, and potential providers who want to serve low-income Americans will face greater barriers to entry and regulatory uncertainty.”

(Reporting by David Shepardson; Editing by Andrew Hay)

America’s Best Three Internet Providers: EPB, Sonic, and Google Fiber

Phillip Dampier March 27, 2017 Broadband Speed, Competition, Consumer News No Comments

Consumer Reports is having a hard time handing out high scores to America’s cable and phone companies after its recent editorial overhaul that replaces simple numeric-only scores with a simpler color code that ranks good companies in green, fair companies in yellow, and downright lousy ones in red.

In its most recent rankings (subscription required), only three internet providers managed to win green ratings: a publicly owned municipal utility in Chattanooga, Tenn., a private ISP serving northern California communities in and around San Francisco, and Google Fiber, which shows every sign of stopping further expansion of its fiber to the home network.

EPB Fiber is the runaway winner of Consumer Reports’ ongoing ratings of America’s top telecom providers, scoring 92 and getting excellent ratings for value, reliability and speed. Sonic, which still primarily offers DSL service, achieved second place despite being limited in selling higher speeds available over AT&T’s wireline telephone network. Google Fiber made third place and is a regular favorite for offering affordable gigabit speeds for around $70 a month, not much more expensive than what some ISPs charge for 60Mbps for less.

The fact a public utility like EPB offers America’s best broadband service must give fits to the telecom giants like Comcast, Charter, and AT&T that only dream of achieving similar scores and have a history of opposing public broadband and in some cases have financed lobbying efforts seeking to ban it.

Providers achieving “yellow” ratings were almost exclusively small, regional independent cable operators and overbuilders like WOW and RCN. Verizon and Frontier’s versions of FiOS also made the cut, although it seems both suffered ratings drops attributable to decreased scores for value and customer service. Both companies have eliminated some of their most aggressive promotions that used to lure customers with a very low price for service.

The list of lousy-scoring companies is larger than ever, and encompass all the familiar large operators most Americans have to do business with. Since Stop the Cap! started in 2008, Mediacom is still rated the lousiest of the lousy cable companies, achieving a score of just 51. Only HughesNet, a satellite internet provider, scored worse, and not by much — achieving a 47 score.

DSL providers other than Sonic performed dismally as well: FairPoint (52), Windstream (53), Frontier (53), Verizon DSL (54), TDS (55), AT&T DSL (55), CenturyLink (57), and Cincinnati Bell DSL (57).

Cable companies also live in the ratings basement – Comcast/XFINITY (54), Charter/Time Warner Cable (55), GCI (60), Comporium (60), and Atlantic Broadband (60). Charter Communications just barely made it out of the red section with a score of (61), also shared by Cox and Cable ONE. Altice’s Cablevision, AT&T U-verse, Blue Ridge Communications, and Consolidated Cable managed scores of just 63. Charter/Bright House and Service Electric got a 64, and Altice’s Suddenlink managed a surprising 66.

The consumer magazine’s conclusion – most Americans still loathe their cable and phone companies, their prices, their bundles, and are greatly dissatisfied with the state of competition. That is unlikely to change considering the industry’s current trend of consolidation, which further reduces customer choice.

Cable Operators Impressed With DOCSIS 3.1 Speeds, Not So Much With Network Gateways

Phillip Dampier March 21, 2017 Broadband Speed, Consumer News 1 Comment

DOCSIS 3.1 is the latest standard for cable broadband. (Image courtesy: Diparth Patel)

DOCSIS 3.1 — the newest iteration of the standard that allows cable operators to deliver broadband over their hybrid fiber-coax networks — is performing better than expected, according to engineers at some of the largest cable companies in the country.

Multichannel News reports the new robust standard works “really well” even when cable infrastructure isn’t up to pristine standards.

“It [DOCSIS 3.1] works better than 3.0 in noisy plant,” said JR Walden, senior vice president of technology and chief technology officer of Mediacom. Walden adds it even performs well where cable operators oversell their network, packing too many customers on a congested node that would normally cause speeds to fall dramatically under the current DOCSIS 3.0 standard.

DOCSIS 3.1 is more efficient handling bandwidth available for broadband service and its ability to bond multiple channels together allows cable operators to boost internet speed tiers dramatically. Mediacom is currently deploying gigabit speeds across its entire network footprint, and the technology is backwards-compatible with DOCSIS 3.0 so cable networks can be upgraded without any disruption to customers.

Mediacom expects its costs to provision customers with broadband service across all speed tiers to drop because of DOCSIS 3.1, delivering the company “better economics.” Customer upgrades can also deliver additional revenue, and Walden claimed between 3-10% of Mediacom customers have already upgraded to gigabit speeds.

The Comcast XB6, one of the first DOCSIS 3.1 network gateways.

The biggest challenge found by early adopters of DOCSIS 3.1 isn’t the technology — it is the network gateways that connect cable modem service to in-home wired and wireless networks. DOCSIS 3.1-compatible gateways are still in short supply, and is essential if the customer is going to get the broadband speed they are paying for. The biggest bottleneck of all comes from in-home Wi-Fi.

Multichannel News:

“Having a very powerful WiFi device is critical” for DOCSIS 3.1, agreed Damian Poltz, VP of technology strategy and networks at Shaw Communications.

Comcast is trying to address this with the XB6, a full-featured DOCSIS 3.1 gateway that will also integrate speedy WiFi, ZigBee and other connectivity technologies.

For its initial D3.1 deployments, Comcast has been pairing stand-alone modems with a separate gateway to serve “thousands of customers.”

While acknowledging that such a set-up is not ideal, Jorge Salinger, VP of access architecture at Comcast, confirmed that Comcast is building versions of the XB6 that use Broadcom and Intel chipsets. He said Comcast is completing employee trials shifting toward customer trials and on to commercial deployments, which are expected to begin in the next month or so.

Customers without DOCSIS 3.1-compatible equipment will find speed tests reporting slower speeds than advertised. Several vendors are working on expanding the supply of network gateways and are making sure those devices can deliver robust Wi-Fi.

The cable companies most aggressive about DOCSIS 3.1 deployment have been Comcast and a variety of smaller national and regional operators like MidCo and Mediacom. Altice is upgrading Suddenlink customers to gigabit speeds using the current DOCSIS 3.0 standard and is scrapping its existing coax network for Cablevision customers, to be replaced with fiber-to-the-home service. Lagging behind will be Charter Communications, expected to be among the last cable operators to upgrade to DOCSIS 3.1 as it remains preoccupied with integrating Time Warner Cable and Bright House into its existing operations. Charter’s first priority is to complete all-digital upgrades for TWC and BH customers, expected to take up to two years to complete.

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