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AT&T GigaPower Can’t Even Reliably Deliver 300Mbps Service, Complain Customers

Bunny and TurtleWhile AT&T trumpets vague plans to upgrade up to 100 cities with gigabit fiber to the home service, some AT&T GigaPower U-verse customers in Austin wish they could just consistently get the 300Mbps service they were promised.

More than a few customers are unhappy with the service they are getting and have been vocal on an AT&T forum with complaints about service interruptions and speed issues.

Among the complaints:

Unresponsive Internet

A common complaint for U-verse GigaPower customers is a suddenly unresponsive Internet.

“Since upgrading to GigaPower often times my browser (same issue with Firefox, Safari, Chrome) will not always load or display web sites. Same thing happens with Tuba and/or Youtube,” writes bcslas. “Often it will fail to load and sometimes I see timeout errors, yet at other times the site loads fine. [...] Usually a refresh or 30 second wait to refresh will fix the issue – but it is constant.”

gigapower“I upgraded to GigaPower last December and since then, the service started getting disconnected multiple times per week,” wrote ybasha. “Sometimes it lasts a few minutes and sometimes longer. When that happens, I lose Internet and TV service. I called technical support multiple times. They sent technicians twice. One of them swapped the modem, but I still have the problem.”

“When I do a Google search from Chrome, it hangs there until it eventually times out and then I have to reload the page, after which the search results appear,” writes bustedmagnet. “Another example is in Gmail, sometimes the initial page is very slow to load, but it hangs forever when trying to open individual emails. Again, multiple page refreshes seem to fix this.”

It turns out that IPV6, enabled by default, is unreliable when using AT&T GigaPower. Customers have usually found relief downgrading to IPV4-only support or switching to Google’s IPV6 DNS servers:

  • 2001:4860:4860::8888
  • 2001:4860:4860::8844

Slow Speeds

austinAT&T GigaPower is supposed to offer 300/300Mbps service today with an upgrade to gigabit Internet forthcoming later this year. But not every customer comes close to getting those speeds. GigaOM writer Stacey Higginbotham found some customers cannot reliably get more than 75Mbps:

Yesterday I was at my brother in-law’s house where he is a GigaPower subscriber, his computer was registering speeds of 70 Mbps down and 50 Mbps up using Ookla on a wired connection. That’s fast, but not 300 Mbps fast and certainly not a gig. My brother and sister-in-law are not speed freaks like myself, but they were disappointed with the GigaPower product.

To me, what was most troubling is that they couldn’t tell me if they had signed up for AT&T’s service plan that offers them a lower price on internet service if the customer lets AT&T use your surfing habits to offer ads. They signed up for a bundle, they said, that was cheaper than their previous service.

“Upload speeds are consistently slower than download speeds,” complained egardiner. “Using att.com/speedtest, I can consistently achieve 320Mbps down, but typically never more than ~180Mbps up. The CrashPlan backup service is glacially slow, never achieving more than 3kbps when sending data to CrashPlan’s cloud servers.  CrashPlan’s techs have suggested that there are no issues on my client PC side nor on their server’s side, and they’ve asked if U-verse GigaPower is throttling backup traffic.”

Broadband Reports’ readers report Usenet newsgroup downloads appear to be heavily throttled over the GigaPower fiber network as well, with speeds dropping well below 100Mbps.

It turns out GigaPower speeds won’t help you with a good Netflix viewing experience either.

“I signed up for the U-Verse GigaPower service and the overall speeds seem to be faster,” writes mstang1988. “The bad, some of regularly used services are not performing. For example, Netflix. On Grande [a competing provider] I was always running at HD. With U-verse I’m seeming giant blocks of blur. I’m fixing to cancel.”

annoyedKim R. in Cedar Falls, Tex. isn’t happy either:

AT&T GigaPower was good for the first 20-30 days, then they made a change and my upload speed is 35-78 on average with a lot of latency and my VoIP phones cannot send or receive calls. Multiple techs were dispatched on Friday and they were at my home for 7+ hours. They eliminated my home as being the source of the issue and other friends in the neighborhood are having the same issues.

We have been in this mode for 4 days now and I have spend most of today working with tech support with no luck. Customer service was no help either when I asked them to suspend billing until they got it working again, of course there answer was “we can’t do that”.

I will loose another day of service when the tech(s) come out again tomorrow. Beware of AT&T’s GigaPower, it’s a myth so far and their techs ride on unicorns and most have no idea about any networking.

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The New Guilded Age is Pay-Per-View; Comcast-TWC Merger Like a Throwback to An Earlier Era

gildedA merger of Time Warner Cable and Comcast is just one more step towards undermining our democracy, worries former Secretary of Labor Robert Reich.

In a blog entry republished by Salon, Reich sees increasing evidence that the trust-busting days at the turn of the 20th century are long over, and Americans will likely have to relearn the lessons of allowing capitalism to run amuck.

It was the Republican Party of the 1890s that had the loudest voice in Washington protesting the concentration of business power into vast monopolies that had grown so large, they not only hurt consumers but threatened to undermine democracy itself.

Republican Senator John Sherman of Ohio was at the forefront of acting against centralized industrial power, which he likened to the abusive policies of the British crown that sparked America’s revolution for independence.

“If we will not endure a king as a political power,” Sherman thundered, “we should not endure a king over the production, transportation, and sale of any of the necessaries of life.”

The merger of Comcast and Time Warner Cable is just the latest example America is in a new gilded age of wealth and power that no longer prevents or busts up concentrations of economic power, observes Reich.

“Internet service providers in America are already too concentrated, which is why Americans pay more for Internet access than the citizens of almost any other advanced nation,” Reich argues.

Reich

Reich

Reich worries about the implications of allowing Comcast to grow larger, considering how much the current company already invests in Washington to get the government policies it wants:

  • Comcast has contributed $1,822,395 so far in the 2013-2014 election cycle, according to data collected by the Center for Responsive Politics — ranking it 18th of all 13,457 corporations and organizations that have donated to campaigns since the cycle began. Of that total, $1,346,410 has gone to individual candidates, including John Boehner, Mitch McConnell, and Harry Reid; $323,000 to Leadership PACs; $278,235 to party organizations; and $261,250 to super PACs;
  • Comcast is also one of the nation’s biggest revolving doors. Of its 107 lobbyists, 86 worked in government before lobbying for Comcast. In-house lobbyists include several former chiefs of staff to Senate and House Democrats and Republicans as well as a former commissioner of the Federal Communications Commission. Nor is Time Warner Cable a slouch when it comes to political donations, lobbyists, and revolving doors. It also ranks near the top.
Atwell-Baker

Atwell-Baker

The Center for Responsive Politics expanded on the revolving door issue between the cable industry and the Federal Communications Commission that will be responsible for approving the Comcast-Time Warner merger.

It found one of the most prominent travelers to be former FCC commissioner-turned Comcast lobbyist Meredith Atwell-Baker. Always a friend of the cable industry, the Republican commissioner hurried out the door two years into her four-year term after getting a lucrative job offer from Comcast in June 2011. Despite claims she stopped participating in votes relating to Comcast after getting her job offer, she was a strong supporter of Comcast’s merger with NBCUniversal and favored the cable industry’s approach towards preserving a barely noticeable feather-light regulatory touch.

Atwell-Baker never contemplated her move might be seen as a conflict of interest, but then again, it represented nothing new for Washington. At the time, the only condition limiting her was a two-year ban on lobbying the FCC. But that does not apply to Congress so Atwell-Baker spent her time as Comcast’s senior vice president of government affairs trying to influence the House and Senate on 21 bills that could affect Comcast’s bottom line.

Just as shameless — Michael Powell, who served as FCC chairman during the first term of the George W. Bush Administration. After leaving the FCC he took the lucrative position of top man at the National Cable & Telecommunications Association, the cable lobby. The Center found several other former FCC employees heading into the private sector, advising Big Telecom companies on how to best influence regulators:

  • Rudy Brioche, was an adviser to former commissioner Adelstein before moving to Comcast as its senior director of external affairs and public policy counsel in 2009. Brioche was so valued by the FCC, in fact, that he was brought back to join the commission’s Advisory Committee for Diversity in the Digital Age in 2011;
  • James Coltharp, who served as a special counsel to commissioner James H. Quello until 1997, is now a Comcast lobbyist;

comcast twcOnce out of the public sector for several years, some lobbyists see their value deteriorate as they get increasingly out of touch with the latest administration in power. So several seek a refresh, temporarily leaving their lobbying job to return to public sector work.

The Center offered David Krone as a potential example. Krone formerly held leadership and lobbying positions with companies like AT&T, TCI Communications and the National Cable & Telecommunications Association. After 2008, he was hired by Senate Majority Leader Harry Reid (D-Nev.) to advise him on telecommunications matters. Today he is Reid’s chief of staff. If and when Reid leaves office, Krone can always join the parade of ex-Hill staffers back to the lucrative world of lobbying.

Will elected officials give a receptive ear to Comcast’s arguments in favor of its merger? Most likely, considering every member of the Senate Judiciary Committee (except deal critic Sen. Al Franken), has recently received campaign contributions from the cable giant, according to OpenSecrets:

gilded-age.gjf_Comcast PAC donations to Senate Judiciary Committee Democrats

  • Chuck Schumer, New York: $35,000
  • Patrick Leahy, Vermont, Chairman: $32,500
  • Sheldon Whitehouse, Rhode Island: $26,500
  • Chris Coons, Delaware: $25,000
  • Dick Durbin, Illinois: $23,000
  • Amy Klobuchar, Minnesota: $22,500
  • Dianne Feinstein, California: $18,500
  • Richard Blumenthal, Connecticut: $11,500
  • Mazie Hirono, Hawaii: $5,000
  • Al Franken, Minnesota: $0

Comcast PAC donations to Republicans

  • Orrin Hatch, Utah: $30,000
  • Chuck Grassley, Iowa, Ranking Member: $28,500
  • John Cornyn, Texas: $21,000
  • Lindsey Graham, South Carolina: $13,500
  • Jeff Sessions, Alabama: $10,000
  • Mike Lee, Utah: $8,500
  • Ted Cruz, Texas: $2,500
  • Jeff Flake, Arizona: $1,000

Reich thinks its time to return to the trust-busting days of President Teddy Roosevelt, who found the transportation infrastructure of the 20th century and the fuel used to power it increasingly controlled by a handful of giant players that abused monopoly power to set unjustifiable prices and suppress competition. Getting Congress, increasingly flush with now-unlimited corporate money, to agree to its own refresh a century later may prove a tougher sell.

 

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More Phantom AT&T Fiber in Texas, North Carolina; Highly Limited Rollouts = Press Release Candy

phantom gigapowerAT&T U-verse with Gigapower is not coming to a home near you, although AT&T hopes you believe it will.

In the public and government relations arena, convincing everyone there is robust competition in broadband is a good prescription to keep the regulators at bay. To make that happen, AT&T continues to roll out more press releases than actual fiber to the home service, this time announcing it is planning to bring its fastest gigabit Internet service to “six cities in North Carolina” and more areas in and around Austin.

“The U-verse GigaPower fiber-optic service will be offered in parts of Carrboro, Cary, Chapel Hill, Durham, Raleigh and Winston-Salem, North Carolina,” AT&T said today in a statement.

But AT&T will not say exactly how many homes it will offer service to, but gave a clue mentioning it plans to connect as many as 100 businesses and 100 “public sites.” It also said it will provide a free, but slow-speed service to as many as 3,000 homes — something it can offer on its existing copper-fiber U-verse platform.

AT&T claims it is ‘racing’ to offer fiber service, but evidence suggests otherwise. Much of AT&T’s U-verse with Gigapower is turning up in condos, new housing developments, and other multi-dwelling units like apartments. Single family homes are evidently not a priority. AT&T’s costs to bring fiber to the back of a complex or large apartment building is lower than stringing or burying fiber to individual homes.

In Austin, one of AT&T’s major Gigapower expansions will come to communities under construction and condo complexes developed by PulteGroup. AT&T signed a favorable agreement with the developer to bring fiber into up to 3,000 homes. AT&T routinely signs similar agreements with developers that offer AT&T exclusive access to existing inside wiring and, in some cases, provide AT&T services to every resident, billed as part of the rent or neighborhood association service fees, deterring competition from cable operators.

AT&T likely selected the communities in North Carolina after receiving a Request For Proposals from a regional group called North Carolina Next Generation Network, which has enticed private providers to build gigabit fiber networks. The coordinated effort is led by six municipalities and four leading research universities and supported by local Chambers of Commerce and businesses in the Research Triangle and Piedmont regions.

With local governments directly involved in the initiative, AT&T was likely satisfied they would not face much difficulty from zoning and permitting procedures to expand their network, and might even receive favorable treatment.

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Telus Implementing Usage-Based Billing April 21; Already Raised Broadband Rates in Feb.

Phillip Dampier April 3, 2014 Canada, Internet Overcharging, Telus No Comments

Telus is notifying customers in Prince George, B.C. and surrounding areas it will begin imposing usage-based billing for Internet service effective April 21.

Despite claims that implementing usage-based charges will save customers money, nearly every Telus broadband user is already paying a higher bill because of a rate increase announced in late January.

logoTelus

telus data allowance

Telus’ usage allowances range from 15GB a month for High Speed Lite users to 400GB for Telus Internet 50 users. Telus is also imposing a scaled overlimit fee system based on the total amount of excess usage. Customers face a $5 overlimit fee for up to 50GB of overuse to a maximum of $75 for 350GB and above. A typical customer with a 150GB usage allowance using 250GB would pay the usual $55/month broadband charge plus a $25 overlimit penalty, raising the price of service to $80.

Starting in June, Telus will introduce an Unlimited Internet Usage option (price not disclosed) for any of their Internet plans.

overlimit fees

Telus wants to fence in "data hogs" with "fairness."

Telus wants to fence in “data hogs” with “fairness.”

“It’s fair that people pay for how much they use, as you would with any other service,” Telus explained. “Our goal is to offer customers a broad spectrum of plans that meet everyone’s needs, and to get customers on the right plan for them.

“Someone who uses their basic Internet service for a bit of email, Skyping with the grandkids, and sharing photos shouldn’t pay as much as someone who games and downloads hundreds of gigabytes of videos every month,” Telus added.

Of course, every customer is already paying more after Telus raised its broadband rates on Feb. 26.

“The cost of managing, expanding and improving our network continues to rise,” Telus explained. “We’re doing our best to keep rate increases as moderate as possible, while still offering great services, flexibility and good value.”

So effectively no customer is actually saving any money with Telus’ usage-based billing. They are actually paying more today and could potentially pay much more when overlimit fees take effect later this month.

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Comcast Hotspot Wi-Fi Usage Will Be Tied Back to Customer’s Broadband Account

xfinity wifiComcast customers using the company’s growing network of Wi-Fi network hotspots will have their usage tracked to their broadband accounts, opening the door for Comcast to count wireless use against a customer’s future monthly usage allowance.

As part of a press release announcing that more than 300,000 Comcast hotspots are now available in New England, the cable company added that it is preparing to activate its Xfinity Wi-Fi Neighborhood Hotspots in the region, allowing other Comcast customers to share your Comcast Internet service over a separate Wi-Fi channel provided by your gateway. But it noted customers will need to log-in first, permitting Comcast to measure just how much of the wireless service you are using:

wifi hotXfinity WiFi Neighborhood Hotspots – In June of last year, Comcast announced its plans to create millions of WiFi access points for its customers through a neighborhood hotspot initiative. Comcast is the first major ISP in the country to deploy this innovative technology. This new initiative gives customers with Xfinity Wireless Gateways an additional “xfinitywifi” signal (or SSID) in their home that is completely separate and distinct from the private and secure home WiFi signal. Offered at no additional cost, the additional WiFi signal will allow visiting Xfinity Internet subscribers instant, easy access to fast and reliable WiFi without the need to share the home’s private network password and without an impact to the home subscriber’s speed. And since visitors sign in with their own Xfinity credentials, their usage and activities are tied back to their own accounts, not the homeowner’s.

 

Comcast is testing the reimplementation of a usage cap – now set at 300GB a month – in several cities in the southern U.S. Wireless usage could eventually also be counted against that cap.

Many of Comcast’s primary outdoor hotspots are in larger cities, such as Greater Boston. Most of the one million total hotspots Comcast hopes to activate are located in residential customers’ homes using Comcast’s Wireless Gateway.

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Time Warner Cable, Comcast Crash, Burn in Consumer Reports’ 2014 Ratings

consumer reportsDespite claims of improved customer service and better broadband, Comcast and Time Warner Cable’s customer satisfaction scores are in near-free fall in the latest Consumer Reports National Research Center’s survey of consumers about their experiences with television and Internet services.

Although never popular with customers, both cable operators plummeted in the 2014 Consumer Reports ratings — Time Warner Cable is now only marginally above the perennial consumer disaster that is Mediacom. Comcast performs only slightly better.

In the view of Consumers Union, this provides ample evidence that two wrongs never make a right.

“Both Comcast and Time Warner Cable rank very poorly with consumers when it comes to value for the money and have earned low ratings for customer support,” said Delara Derakhshani.  “A merger combining these two huge companies would give Comcast even greater control over the cable and broadband Internet markets, leading to higher prices, fewer choices, and worse customer service for consumers.”

These ratings reflect Internet service only.

These ratings reflect Internet service only.

Comcast ranked 15th among 17 television service providers included in the ratings and earned particularly low marks from consumers for value for the money and customer support.  Time Warner ranked 16th overall for television service with particularly low ratings for value, reliability, and phone/online customer support.

Another ratings collapse for Comcast and Time Warner Cable

Another ratings collapse for Comcast and Time Warner Cable

Comcast and Time Warner Cable were mediocre on overall satisfaction with Internet service.  Both companies received especially poor marks for value and low ratings for phone/online customer support.

“In an industry with a terrible track record with consumers, these two companies are among the worst when it comes to providing good value for the money,” said Derakhshani.  “The FCC and Department of Justice should stand with consumers and oppose this merger.”

For as long as Stop the Cap! has published, Mediacom has always achieved bottom of the barrel ratings, with satellite fraudband provider HughesNet — the choice of the truly desperate — scoring dead last for Internet service. We’re accustomed to seeing the usual bottom-raters like Frontier (DSL), Windstream (DSL), and FairPoint (DSL) on the south end of the list. But now both Comcast and Time Warner Cable have moved into the same seedy neighborhood of expensive and lousy service. Comcast couldn’t even beat the ratings for Verizon’s DSL service, which is now barely marketed at all. Time Warner Cable scored lower than CenturyLink’s DSL.

Breathing an ever-so-slight sigh of relief this year is Charter Communications, which used to compete with Mediacom for customer raspberries. It ‘rocketed up’ to 18th place.

If you want top-notch broadband service, you need to remember only one word: fiber. It’s the magical optical cable phone and cable companies keep claiming they have but largely don’t (except for Verizon and Cincinnati Bell, among a select few). If you have fiber to the home broadband, you are very happy again this year. If you are served by an independent cable company that threw away the book on customer abuse, you are relieved. Topping the ratings again this year among all cable operators is WOW!, which has a legendary reputation for customer service. Wave/Astound is in second place. Verizon and Frontier FiOS customers stay pleased, and even those signed up with Bright House Networks and Suddenlink report improved service.

Ratings are based on responses from 81,848 Consumer Reports readers. Once again they plainly expose Americans are not happy with their telecom options. The average cost of home communications measured by the Mintel Group is now $154 a month — $1,848 a year. That’s more expensive than the average homeowner’s clothing, furniture or electricity budget. The same issues driving the bad ratings last year are still there in 2014: shoveling TV channels at customers they don’t want or need, imposing sneaky new fees along with broad-based rate increases every year, low value for money, and customer service departments staffed by the Don’t Care Bears.

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UPDATED: Comcast Wants Some Broadband Customers to Rent Comcast-Issued Cable Modems

Phillip Dampier March 25, 2014 Broadband Speed, Comcast/Xfinity, Consumer News 15 Comments
Comcast's gateway

Comcast’s gateway

Some customers are angry and frustrated to learn Comcast has stopped “officially” allowing the use of customer-owned cable modems for its 105Mbps “Extreme” service, insisting subscribers rent a company-supplied gateway for $8 a month.

“Only Comcast issued equipment ensures that the specifications are always met and are not altered intentionally or unintentionally,” reads a technical bulletin issued by the cable company issued Feb. 26.

The new policy was discovered by a Comcast customer in Virginia having trouble with his broadband service. He was using his customer-owned Zoom 5341J — equipment on Comcast’s approved modem list.

“[A Comcast executive customer service representative] insisted that list is incorrect and I must rent a modem from them to receive the correct speeds on [the] Extreme 105 package,” writes ExoticFish on the Broadband Reports’ Comcast forum.

The bulletin, identified as ID TLK1043 and intended for the use of Comcast employees, explains:

Document ID TLK1043; Published February 26, 2014

Overview

Extreme 105 is the latest Comcast DOCSIS 3.0 XFINITY speed product, which provides extreme and unbelievable Internet speeds for customers. The product provides:

  • 105Mbps download speed
  • 20Mbps upload speed

Affected Areas

National.

Some of the Talking Points are not applicable for the Central Division.

Comcast-LogoImpact to Comcast

The Premium Installation fee for Extreme 105 is $249. Extreme 105 is installed by 105Mbps trained technicians. The Comcast Technician will:

  • Conduct an in-depth analysis of the customer network.
  • Ensure that the customer’s home and equipment are prepared to support the speeds included in the Extreme 105 service.
  • Perform a node health check on the day of installation and also on a daily basis after installation.

Impact to Customer

Extreme 105 targets:

  • Hard-core gamers
  • Users with several computers in their house
  • Users who upload and share multimedia files

Media Inquiries

Any media inquiries should be directed to the local market media team.

Q&A

Some of the Frequently Asked Questions and their responses are as below:

Why do I need to use Comcast issued equipment?
Only certified Comcast equipment delivers the ensured service speed attached to the customer’s account.

Comcast allows customers to use their own equipment for all your other Internet packages, why not Extreme 105?
Generally customers can use their own equipment and configure it as they see fit. But for Extreme 105, the configuration must be done and maintained at certain specifications. Only Comcast issued equipment ensures that the specifications are always met and are not altered intentionally or unintentionally.

But I have a DOCSIS 3.0 Modem and N Router, why do I need your versions?
Comcast installs equipment which have gone through extensive network certification process of Comcast and which have been proven in both laboratory and live network tests. This ensures that the equipment performs consistently and delivers the subscribed speed and services.

Does the $249 installation fee include installation of a wireless router?
Yes, the installation fee includes the installation of Comcast owned wireless router.

Why is there a premium installation fee for Extreme 105?
Extreme 105 is a premier Internet product by Comcast and the premium installation fee guarantees a speed of 105Mbps. A Comcast Certified Installation Technician performs additional tests which are not performed during installation of other premier internet service.

Is the premium installation fee refundable if I disconnect the service in 30, 60, 90 days?
The installation fee is non-refundable.

With Comcast reportedly preparing to boost speeds for its customers in the near future, those signed up for Comcast’s 50Mbps “Blast” tier could soon see speed upgrades to 105Mbps. That might expose those customers to the same mandatory rental charge.

The Virginia customer never realized Comcast changed its policies until he had service problems. It was then that a senior representative insisted the customer switch to Comcast’s rented gateway device if he wanted his service fixed. Other customers still using customer-owned equipment and subscribed to 105Mbps service may continue to fly under the radar for some time and there does not seem to be any national effort to contact customers about their equipment.

Some speculate Comcast’s new policy might also relate to the company’s intention to expand its Wi-Fi network relying on Comcast customers with gateway devices to serve as hotspots. That would likely require the use of Comcast’s own gateway to be successful.

Updated: 3/26/14 — 12:17pm ET — Karl Bode at Broadband Reports got an answer back to his inquiry about this issue and a Comcast rep tells him the service tech handing out the above-referenced memo is not correct:

The painful spelling and grammar errors in the last bit of the supposed company memo seemed a little off, so I reached out to Comcast for comment. The long and short of it is: no, this is not official company policy.

“We’re going to have someone try to reach out to the forum poster to follow up, but the short of it is there is no policy change,” Comcast spokesman Charlie Douglas tells me. “Customers can buy or rent modems. Here is our approved devices list.”

Karl adds: “I’m still trying to ferret out why exactly this install technician was trying to push strange and unofficial company policy, and how and why he was using an incorrect and grammatically mangled memo to justify the behavior.”

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Denial of Service Attack on One Mass. Customer Brings Verizon FiOS to Its Knees for Many

Phillip Dampier March 24, 2014 Broadband Speed, Consumer News, Verizon 3 Comments
A denial of service attack often directs compromised computers to join in the attack, bringing an enormous amount of simultaneous traffic to a single, targeted user. The result is usually very slow or no Internet service.

A denial of service attack often directs compromised computers to join in the attack, bringing an enormous amount of simultaneous traffic to a single, targeted user. The result is usually very slow or no Internet service. (Image courtesy: Cisco)

For nearly a month, Verizon FiOS customers in Westborough and Northborough, Mass. have experienced frequent slowdowns and outages of their Internet and telephone service that Verizon now admits have been traced to a denial-of-service attack on a single residential customer in Westborough.

“Someone deliberately flooded that customer with an overwhelming amount of traffic that rendered their Internet service inoperable,” Verizon spokesman Philip G. Santoro told The Telegram. “When that happened, it caused Internet service to periodically slow down for other customers in Westborough,” he wrote. “We are working to restore service to normal as soon as possible. DOS attacks are all too common today among customers of all Internet providers. It’s important to remind Internet users to keep their firewalls operating and to keep their security software current.”

When the newspaper first reached Santoro for comment, he claimed there wwere no widespread outages reported, but angry customers disagreed on the community’s Facebook page and six filed complaints with the state’s Office of Consumer Affairs and Business Regulation.

The outages have been a problem as far back as Feb. 26, growing more frequent in number since March 3. Business customers were also affected.

“It happened around 3 o’clock, every day,” said Allen Falcon, chief executive officer for Cumulus Global, a cloud computing company in Westborough. “Sometimes it was a few minutes, sometimes 45 minutes to an hour.” A few times, the interruptions occurred in the morning, just after 9 a.m., he said.

westboroughWhen the attacks began, they not only affected the company’s Internet connection, but also its business phone service.

Verizon’s first solution was to replace FiOS routers, which proved ineffective.

Customer Steve Winer from Westborough told the newspaper sending Verizon crews out with new equipment was a waste of time and money.

“I am just wondering how much time and money was wasted on this,” he wrote the newspaper in an email. “I know I spent at least a couple of hours on the phone, and others shared similar stories. But, if you add up all the shipped routers and unnecessary service calls, along with the time both of us customers and (Verizon) personnel, I am sure it really adds up, and could have been avoided if someone had simply put two and two together and posted a chronic outage which began in February.”

Verizon's wired success story

Last week, Verizon finally identified the specific customer targeted by the cyber-attack and terminated his FiOS account, which also put an end to the service-disrupting attacks.

Some customers are wondering whether Verizon has an effective plan to deal with future cyber attacks.

“It seems FiOS is very vulnerable to these attacks, which not only affects the target’s service, but that of everyone else in town,” wrote Stop the Cap! reader Steve Read, a Northborough resident. “They need a way to quickly isolate these kinds of attacks and keep them from affecting other customers’ service.”

Customers affected by the outages can contact Verizon FiOS customer service and request credit for the outages.

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Verizon: Prioritization and Compensation for Certain Traffic is the Future of the Internet

McAdam

McAdam

The head of Verizon believes two concepts will become Internet reality in the short-term future:

  1. Those that use a lot of Internet bandwidth should pay more to transport that content;
  2. The “intelligent” Internet should prioritize the delivery of certain traffic over other traffic.

Welcome to a country without the benefit of Net Neutrality/Open Internet protection. A successful lawsuit brought by Verizon to toss out the Federal Communications Commission’s somewhat informal protections has given Verizon carte blanche to go ahead with its vision of your Internet future.

Lowell McAdam, Verizon’s CEO, answered questions on Tuesday at the Morgan Stanley Technology, Media & Telecom Conference, attended by Wall Street investors and analysts.

McAdam believes groups trying to whip Net Neutrality into a major issue are misguided and uninformed about how companies manage their online networks.

“The carriers make money by transporting a lot of data,” McAdam said. “And spending a lot of time manipulating this, that accusation is by people that don’t really know how you manage a network like this. You don’t want to get into that sort of ‘gameplaying.’”

netneutralityMcAdam believes there is nothing wrong with prioritizing some Internet traffic over others, and he believes that future is already becoming a reality.

“If you have got an intelligent transportation system, or you have got an intelligent healthcare system, you are going to need to prioritize traffic,” said McAdam. “You want to make sure that if somebody is going to have a heart attack, that gets to the head of the line, ahead of a grade schooler that is coming home to do their homework in the afternoon or watch TV. So I think that is coming to realization.”

But McAdam also spoke about the need for those generating heavy Internet traffic to financially compensate Internet Service Providers, resulting in better service for content producers like Netflix — not considered ‘priority traffic’ otherwise.

“You saw the Netflix-Comcast deal this week which I think — or a couple weeks ago — which is smart because it positions them farther out into the network, so they are not congesting the core of the Internet,” said McAdam. “And there is some compensation going back and forth, so they recognize those that use a lot of bandwidth should contribute to that.”

McAdam reported to investors he had spoken personally with FCC chairman Tom Wheeler, who seems to be taking an even more informal approach to Net Neutrality than his predecessor Julius Genachowski did.

Verizon's machine-to-machine program is likely to be a major earner for the company.

Verizon’s machine-to-machine program is likely to be a major earner for the company.

“In my discussions with Tom Wheeler, the Chairman, he has made it very clear that he will take decisive action if he sees bad behavior,” McAdam said, without elaborating on what might constitute ‘bad behavior.’ “I think that is great; great for everybody to see that. And I think that is what we would like to see him do, is have a general set of rules that covers all the players: the Netflixes, the Microsofts, the Apples, the Googles, and certainly the Comcasts and the Verizons. But the only thing to do is not — you can’t just regulate the carriers. They’re not the only players in making sure the net is healthy. And I think we all want to make sure that investment continues in the Internet and that customers get great service.”

Verizon has already reported success monetizing wireless broadband usage that has helped deliver growing revenue and profits at the country’s largest carrier. Now McAdam intends to monetize machine-to-machine communications that exchange information over Verizon’s network.

McAdam believes within 3-4 years Americans will have between five and ten different devices enabled on wireless networks like Verizon’s in their cars, homes, and personal electronics. For that, McAdam expects Verizon will earn between $0.25 a month for the average home medical monitor up to $50 a month for the car. Verizon is even testing wireless-enabled parking lots that can direct cars to empty parking spaces.

For those applications, McAdam expects to charge enough to guarantee a 50% profit margin.

“These can be very nice margin products,” McAdam told the audience of investors. “So even at $0.25 if you are doing 10 million of them and it’s 50% or better margins, those are attractive businesses for us to get into.”

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Read Between AT&T’s Landlines: What They Don’t Say Will Cost Kentucky, Other States

Phillip "Another year, another AT&T deregulation measure" Dampier

Phillip “Another year, another AT&T deregulation measure” Dampier

It’s back.

It seems that nearly every year, AT&T and its well-compensated fan base of state legislators trot out the same old deregulation proposals that would end oversight of basic telephone service and allow AT&T (and other phone companies in Kentucky) to pull the plug on landline service wherever they feel it is no longer profitable to deliver.

This year, it’s Senate Bill 99, introduced once again by Sen. Paul “AT&T Knows Best” Hornback (R-Shelbyville). Back in 2012, Hornback disclosed AT&T largely authors these deregulation measures and he introduces them on AT&T’s behalf. In fact, he’s proud to admit it, telling the press nobody knows better than AT&T what the company needs the legislature to do for it.

“You work with the authorities in any industry to figure out what they need to move that industry forward,” Hornback said. “It’s no conflict.”

While Hornback moves AT&T forward, “his” bill will move rural Kentucky’s best chances for broadband backwards.

AT&T always pulls out all the stops when lobbying for its deregulation bills. In Kentucky, AT&T has more than 30 legislative lobbyists, including a former PSC vice chairwoman and past chairs of the state Democratic and Republican parties working on their behalf. It has spent over $100,000 in state political donations since 2007.

The chief provisions of the bill would:

  • End almost all oversight of telephone service by the Public Service Commission anywhere there are more than 15,000 people living within a telephone exchange’s service area;
  • Give Kentucky phone companies the right to disconnect urban/suburban basic landline phone service and replace it with either wireless or Voice over IP service;
  • Allow rural customers to keep landline service for now, but also permits AT&T and other companies to effectively stop investing in their rural wired networks.

yay attThis year, AT&T apparently conceded it was just too tough to convince the legislature to let them disconnect hundreds of thousands of rural Kentucky phone customers at the company’s pleasure, so this time they have permitted rural wired service to continue, with some exceptions that make life easier for AT&T.

First, the end of oversight of telephone service means customers in larger communities in Kentucky will have no recourse if their phone service doesn’t work, is billed incorrectly, is disconnected during a billing dispute, or never installed at all. The PSC has traditionally served as a last resort for customers who do not get satisfaction dealing with the local phone company directly. PSC intervention is taken very seriously by most phone companies, but the state agency will be rendered almost toothless under this bill.

Second, although existing rural phone customers would be able to keep their basic landline service (for now) under this measure, nothing prevents AT&T from marketing alternative wireless phone service to customers experiencing problems with their existing service. Verizon has attempted that in portions of upstate New York, where telephone network deterioration has led to increased complaints. In some cases, Verizon has suggested customers switch to wireless service instead of waiting for phone line repairs which may or may not solve the problem. New rural customers face the possibility of only being offered wireless or alternative phone services.

Third, provisions in the bill give AT&T and other companies wide latitude to offer wireless or Voice over IP alternatives to landline service with little recourse for customers who only later discover these alternatives don’t support faxes, medical or security alarm monitoring, dial-up Internet, credit card processing, etc.

Fourth, the bill eliminates any requirement imposed upon broadband service in existence as of July 15, 2004. In fact, the measure specifically defines both phone and broadband service as “market-based and not subject to state administrative regulation.” That basically means service will be unregulated.

AT&T's wireless home phone replacement

AT&T’s wireless home phone replacement

Here are some real world examples of where S.B. 99 could trip up consumers:

  1. An elderly Louisville couple living the summer months in Louisville discover their phone service has been switched to the U-verse platform over the winter as AT&T seeks to decommission its deteriorating landline network in the neighborhood. S.B. 99 offers customers a 30-day opt out provision upon first notification, allowing a customer dissatisfied with the alternative service the right to switch back to their landline. But this couple was in Florida during the 30-day window, did not receive the notification to opt out in time to act, and are now stuck with U-verse. Unfortunately, the home medical monitoring equipment for his pacemaker does not work with Voice over IP phone service. This couple’s recourse: None.
  2. A customer moves into a new home currently served by AT&T’s wireless home phone replacement service. The customer doesn’t like the sound quality of the service and wants a traditional landline instead. Her recourse: None.
  3. A retired couple uninterested in broadband service or television from AT&T U-verse suddenly discovers AT&T wants to raise prices on landline phone service, but offers savings if the couple agrees to sign up for U-verse. Instead of paying a $25 monthly phone bill, the couple is now being asked, on a fixed income, to pay $100 a month for services they don’t want or need. Their recourse: They can appeal to keep their landline if they meet the aforementioned deadline, but they have no recourse if AT&T raises rates for basic phone service to make its discounted bundled service package seem more attractive.

Hood Harris, president of AT&T Kentucky, follows the same playback AT&T always uses when pushing these bills by framing its argument around landline telephone service regulation, which is an easy sell for cell phone-crazy customers who have not made a landline call in years:

Harris

Harris

Some of Kentucky’s laws that regulate our phones were written before cable television, cell phones, the Internet or email existed.

Because of these outdated laws, providers like AT&T must sink resources into outdated technology that could be invested in the modern broadband and wireless technology consumers want and need.

Every dollar invested in old technology is a dollar not being invested in speeding up the build out of new technology across the commonwealth.

It’s no longer the 19th century coming into your home over the old, voice-only phone network that was put in place under now-outdated laws. It’s the 21st century coming into your home over modern networks. While technology has changed dramatically for the better in just the past few years, our laws have not.

Despite what you may have heard, SB 99 will not remove landlines from rural homes or businesses.

Instead, this legislation puts those customers in charge of deciding which communications services they want and need. If you are a rural customer, for example, you may choose to join the nearly 40 percent of Kentuckians who already have moved on from landline home phones and gone only with a wireless phone, or you may choose a landline phone that’s provided over the Internet (known as Voice over Internet Protocol, or VoIP), or you may choose both a VoIP and a wireless service.

But you do not have to — you can keep your existing landline phone if you like. Under SB 99, the choice is yours.

It’s seems like a logical argument, until you read between the lines. Harris implies that those old-fashioned laws governing landlines you don’t have anymore are slowing down AT&T from bringing about a Broadband Renaissance for Kentucky. If AT&T only was freed from the responsibility of patching up its copper wire phone network, it could spend all of its time, money, and attention on improving cell phone service and bring broadband to everyone. Harris promises every resident will have a choice to get the service they want — wireless or wired — as long as you remember he is only talking about basic phone service, not broadband.

If your community isn't highlighted on this map, AT&T has a wireless-only future in store for you.

If your community isn’t highlighted on this map, AT&T has a wireless-only future in store for you.

Harris avoids disclosing AT&T’s true agenda. The company has freely admitted to shareholders it wants to scrap its rural wired network, now considered too costly to maintain for a diminishing number of customers. Unlike independent phone companies like Frontier, AT&T has been in no hurry to upgrade these rural customers for broadband service. AT&T has not even bothered to apply for federal broadband funding assistance to defray some of the costs of extending DSL to its rural customer base. With no possibility of buying broadband from AT&T, customers have little incentive to keep wired service if a cell phone will do. But decommissioning landline service in rural Kentucky guarantees these customers will probably never receive adequate broadband.

The "long term cost reduction" AT&T mentions above is for them, not for you.

The “long-term cost reduction” AT&T mentions above is for them, not for you.

AT&T claims it will invest the savings in a wireless broadband network for rural customers, but as any smartphone owner will attest, AT&T’s wireless service is much more expensive than traditional phone service and its data plans are stingy and very expensive. Customers who can buy DSL from AT&T pay as little as $14.99 a month for up to 150GB of usage. A wireless data plan with AT&T for a home computer or notebook starts at $50 a month and only provides 5GB of usage before customers face a $10 per gigabyte overlimit fee. Which would you prefer: paying $14.99 for 150GB of usage with AT&T DSL or $1,500 for the same amount of usage on AT&T’s wireless network?

AT&T’s claims it will expand broadband as a result of not having to spend money on its landline network are specious. In fact, regardless of whether Kentucky passes S.B. 99 or not, AT&T has already embarked on its last known U-verse expansion. Project Velocity IP (VIP) devotes $6 billion to expanding U-verse to 57 million homes, reaching 75% of customer locations by the end of 2015. For the remaining 25% of customers, mostly in rural areas, AT&T’s plan isn’t to spend more money on improved wired service. Instead, it will build out its wireless network to serve the remaining customers with its LTE wireless broadband service — the same one that costs you $1,500 a month if you use 150GB.

Wireless is a cash cow for AT&T, so even saddled with its landline network, the company still spends the bulk of its investments on the wireless side of the business. Project VIP could have devoted all its resources to bringing U-verse to a larger customer base, but it won’t. AT&T sees much fatter profits spending $14 billion now to expand its wireless 4G LTE network and collect a lot more money later from its rural Kentucky customers.

Kentucky residents who don’t have U-verse in their area by the end of 2015 are probably never going to get the service, with or without S.B. 99. So why support a measure that delivers all the benefits to AT&T and leaves you sorting through the fine print just to keep the service you have now at a reasonable price. In every other state where AT&T has won deregulation, it raises the rates with no corresponding improvement in service.

Just how bad can AT&T’s wireless home phone replacement be? Just look at their disclaimers:

AT&T Wireless Home Phone is not compatible with home security systems, fax machines, medical alert and monitoring services, credit card machines, IP/PBX Phone systems, or dial-up Internet service. AT&T’s fine print on its website.

“AT&T’s wireless services are not equivalent to wireline Internet.” Wireless Customer Agreement, Section 4.1.

“WE DO NOT GUARANTEE YOU UNINTERRUPTED SERVICE OR COVERAGE. WE CANNOT ASSURE YOU THAT IF YOU PLACE A 911 CALL YOU WILL BE FOUND.” (All caps in original). Section 4.1.

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