Verizon Wireless: You are being watched.

Would it bother you if the advertiser on that big billboard you just drove past could find out if you later visited that business in response? Should a store like Best Buy or Sears be able to know if you are only using their showrooms to see a product you will eventually buy online? Should your phone company be able to store your complete travel history for years and then create new products and services to pitch aggregated travel observations to anyone willing to pay?

Verizon Wireless does not think you will have a problem with any of this, because it has quietly begun selling this information through its Precision Market Insights (PMI) service.

AT&T is likely not too far behind with a similar service of its own, potentially earning millions from a comprehensive data trove tracking customer locations, travel history, and web browsing habits for an undetermined length of time.

The Wall Street Journal reports shareholder demand for higher profits is pushing cell phone companies to find new revenue streams, even at the potential risk of alienating customers and privacy advocates.

PMI clients may find out more about you than you realize, even though phone companies promise they will not sell personally identifiable information about their customers.

The Phoenix Suns are PMI clients, and by tracking game attendees, Verizon Wireless was able to tell the sports team:

• 22% of game attendees are from out-of-town;
• Most spectators had children at home, ranged in age from 25-54 and earned more than $50,000 a year;
• 13% of baseball spring training attendees in the Phoenix area also went to Suns games;
• Area fast food restaurants running Suns promotions saw an 8.4% uptick in business from Verizon Wireless customers.

Such information can let the sports team target advertisers and offer evidence-based statistics that any campaign will increase sales, and by how much. Malls can use PMI to find certain types of customers that have a history of lingering in mall stores. Billboard owners can see if their ad messages resulted in higher in-store visits.

Customers using a phone under a commercial or government account are exempt from the tracking program. All residential customers are automatically opted in to take part, unless they specifically opt out.

Privacy advocates are concerned carriers are storing personal customer usage data for an undetermined amount of time, and in a form that could be personally identifiable, even if the provider decides not to sell data with that granularity to third parties. That could make cell phone companies prime targets for government/law enforcement subpoenas.

Last year, Verizon sent a notice to customers opting them in to the program unless they specifically opted out. Stop the Cap! covered the story back then, helping customers wishing to opt out.

The Wall Street Journal reports wireless carriers were at first slow to sell data on their customers’ usage habits, but not anymore. Shareholders want new sources of revenue, and wireless companies are packaging and selling customer information to get it.  (2 minutes)

Other stories of interest:

1. Privacy Alert: Verizon Wireless is Selling Your Browsing Habits and Online Behavior to Advertisers
2. Why You Don’t Want the Verizon Guy Transferring Your Risqué Photos to a New Phone
3. Wall Street & Verizon Wireless CEO Love Company’s New, Higher-Priced Plans
4. AT&T Admits It Tracks Cell Phone Customers in Quest for Additional Profits
5. Verizon Wireless Customers: 48 Hours Left to Secure Unlimited Data/Unlimited 4G Tethering Plans

The company that charges customers north of $90 a month for cell phone service with a tiny data plan has introduced Verizon Cloud, a ho-hum free cloud storage add-on for Android devices that is leaving customers cold.

Verizon Wireless is applying the same stingy standards to its online backup service it uses for its paltry data plans, providing customers with less storage than the competition:

• Verizon Wireless: 500MB
• Dropbox: 2GB
• Google Drive: 5GB
• SkyDrive: 7GB

Run over your allowance? A premium plan comes with premium pricing: $2.99 per month for 25GB up to $9.99 per month for 125GB.

The ‘could you spare it’-storage allowance is bad enough, but the service’s performance is much, much worse judging from more than 5,700 scathing customer reviews. The majority of users rate Verizon’s app just one star, primarily because they couldn’t give it zero stars.

“It’s disappointing that Verizon would release this piece of crap and then encourage people to download it,” writes Andrew Gardner.

That’s okay Andrew. Verizon is gradually pushing the app to compatible phones with no uninstall option. Those using Verizon’s Backup Assistant will find all their content automatically transferred over to Verizon Cloud whether they want it floating there or not.

“I can’t wait not to use this,” shared Gabriel Rodriguez.

Some customers don’t want Verizon force-feeding apps on their phones, particularly ones designed to chew at their data plan allowance while unintentionally crashing their smartphones.

“This app is responsible for 99% of the crashes on my poor, aging Droid X over the last few months,” writes Tim Odell. “The update came through and was like ‘you must sign up for….’ Seeing any changes and a “plus” associated with a Verizon mandate also left me assuming it would (secretly) cost me money. For my troubles I’m awarded 1-2 crashes per day.”

“Verizon apps run flawlessly as long as you allow them to do whatever they want (ie. turn off your Wi-Fi) and use your data plan without your knowledge,” offers David Lawrence. “[A Verizon rep told me] ‘It’s good for business [and] job security.’ At this point I didn’t have enough bread crumbs to find my way home. Maybe she had just come from an internal training seminar and she missed the ‘don’t repeat this to a customer’ part. Or, maybe, we have come to a point in this world where some people are completely blind to theft and unfairness, as long as it’s marketed as ‘good business’. Either way, the app sucks.”

Other stories of interest:

1. Verizon Wireless Earns More from Wireless Data Traffic That Costs Them Less
2. Amazon Introduces Free Personal Cloud Storage; Will Consumers Use It on Capped Accounts?
3. Verizon Wireless Hotspot Pricing Will Burn a Hole in Your Wallet With $20/GB Overlimit Fee
4. Verizon Wireless Charges $5 a Month for Tool To Prevent Paying Even More
5. Verizon Sneaks Customer Off Unlimited Data Plan, Despite Promises It Wouldn’t

Sprint will focus its postpaid wireless business on profitability in 2013, with reductions in customer discounts and a tighter upgrade policy that will raise prices for some and slow down others seeking new subsidized smartphones.

CEO Dan Hesse today told Wall Street investors Sprint will be leveraging its upgraded LTE network to help hold the line on discounts and early upgrades, reminding customers Sprint’s Network Vision plan is delivering better service with faster speeds and fewer dropped or blocked calls.

Sprint released its 1st quarter 2013 earnings this morning, showing the company reduced its quarterly losses from $863 million in the same quarter last year to $643 million. The company spent $1.4 billion during the first quarter on network upgrades, primarily on forthcoming 4G LTE network roll-outs.

Steve Elfman, Sprint’s president of network operations reported the company activated more than 12,000 LTE-upgraded cell towers by the end of the quarter, slowed only by inclement weather. This year will see a massive increase in those numbers.

“We now have zoning complete on over 32,000 sites and leasing complete on over 31,000 sites. More than 25,000 sites already or have already begun construction,” Elfman reported. “Our weekly construction starts are now at a level to achieve our goals for the year. There are over 600 cities under construction and we have now launched 4G LTE in 88 cities with over 170 expected to launch in the months to come.”

Hesse

While Elfman oversees LTE upgrades, Sprint is also busy working towards decommissioning its Nextel network on June 30. Despite repeated warnings Nextel’s demise was close at hand, at least 1.4 million Nextel customers, nearly all business accounts, are still active on that network. Sprint is focusing most of its promotional budget again this quarter on convincing those customers to convert to Sprint service. But only 46 percent of Nextel customers took Sprint up on their repeated offers during the first quarter. Many others left for Verizon Wireless, switching off not only their Nextel commercial phones, but also those on Sprint’s network as well.

Sprint expects to hold on to a declining number of its Nextel customers as the second quarter progresses, until the network is switched off for good at the end of June.

That hurts, because Sprint has also been losing customers due to “pardon our dust” construction-related service interruptions as part of LTE 4G upgrades. Those disruptions are expected to accelerate  as more cities are prepared for LTE service.

Sprint’s Lifeline cell phone service for the poor, Assurance, also took major hits during the quarter after the FCC tightened eligibility requirements for the free/low-cost cell phone service. The company switched off 224,000 accounts in the last three months that either failed to re-certify eligibility or were never qualified in the first place. Sprint’s wholesale customers, which resell access on the Sprint network, are also busy deactivating unqualified Lifeline wireless lines, so Sprint expects a similar number of disconnects during the second quarter as those accounts are dropped from the network.

As Sprint turns its attention to profitability, revenue numbers at Sprint improved slightly. Sprint’s prepaid division added 568,000 net prepaid customers, and Virgin Mobile raised its minimum top up amount for 90 days of service to $20 (up from $15 with a credit card). As customers upgrade their Sprint postpaid phones, more customers are also encountering Sprint’s $10 “premium data” surcharge.

Customers will also discover a tightening of Sprint’s discounts and upgrade promotions. Among the efforts underway:

• curtailing or eliminating certain customer credits and discounts;
• tightening device upgrade policies to end early upgrades, although Sprint still retains its 20 month upgrade policy for now;
• holding the line on phone subsidies for increasingly expensive smartphones.

Sprint’s prepaid mobile division

Slowing phone upgrades is particularly important for Sprint’s bottom line.

“I think the policy shifting is important in the industry because subsidies just keep going up and I think from the economic model perspective of the carriers we just can’t afford to upgrade as often,” said Sprint CEO Dan Hesse. “We’re not seeing any evidence yet that customers are interested in upgrading less often if they see less difference or improvement year-over-year in terms of what’s going on with these devices. In fact the opposite might be true which means these policies are really quite important for the industry.”

Hesse admitted that the drive to increase profits could cost Sprint some of its postpaid business, and probably already has over the last three years. But Hesse noted many of those contract customers have migrated to the company’s prepaid service, which keeps revenue in-house. Hesse expects as long as popular phones are available on prepaid plans, price-sensitive customers will continue to migrate towards prepaid service.

“I think what you are seeing is maturing of the U.S. markets beginning,” Hesse noted. “The U.S. has always been or traditionally been almost exclusively postpaid and it’s beginning to look like other markets that have a higher prepaid mix in terms of the number or percentage of customers.”

Other stories of interest:

1. Sprint’s Dan Hesse Complains About Wall Street’s “Disconnect” Over Investment
2. Wall Street Attacks: Sprint CEO in Big Trouble for Plans to Upgrade Sprint’s Network to LTE
3. Sprint Moves To Launch Its Own LTE 4G Network; WiMax? Not So Much Anymore
4. Verizon Wireless Eliminating “New Every Two” Program; Other Upgrade Discounts Being Phased Out
5. Sprint CEO Says Provider “Could” Discontinue Unlimited Pricing, But Not Now

Since introducing its version of TV Everywhere more than a year ago, one of the most frustrating aspects of Time Warner Cable’s video streaming service has been it only works within your own home over the cable company’s own broadband service. As of tomorrow morning, that will change. If you own an Apple iOS tablet or smartphone, the cable company’s new version of its TWC TV app (free) will bring streamed and on-demand programming from a handful of cable networks regardless of where you happen to be.

There are several limitations however:

1. Having access to a Wi-Fi network while on the go will be a big help. Streaming access over 3G/4G service will initially be limited to Verizon Wireless customers, perhaps a fringe benefit of the agreement between Verizon and Time Warner Cable to collaborate in cross-marketing services;
2. Only nine cable networks and one Time Warner Cable-owned news channel will be available for live streaming when the service launches. None of them are particularly compelling. Programmers are fearful that streaming access outside of the home may open up cable programming to non-paying customers with access to a shared password;
3. Fox News Channel and Fox Business were reportedly going to be available as of tomorrow, but Time Warner Cable’s official blog post omits the two networks;
4. Android and desktop users will have to wait until summer to get the upgrade, an annoying prospect considering Android users now outnumber Apple iOS users, who have to wait.

The online programming guide is also being revamped to help users find TV channels and online on-demand content more quickly.

The initial out-of-home On Demand library offers over 1,100 hours of programming from the following providers:

BBC America
BET
CBeebies
CMT
Comedy Central
Cooking Channel
DIY
FEARnet
Food Network
Hallmark
HGTV
Logo
MTV
MTV2
Nick Jr.
Nickelodeon
Palladia
Spike
TeenNick
Travel Channel
Tr3S
TV Guide Network
TV Land
UniMas
Univision
VH1
VH1 Classic

Live TV streaming will be available from the following national networks:

Aspire
BBC America
beIN Sports (English/Spanish)
FearNet
GMC
Pac-12
TVGuide Network

Additionally, all Time Warner Cable local news channels will eventually be available out of home, though all local news, traffic and weather channels may not be available immediately. The following news channels will be available at launch:

NY1
NY1 Noticias
News 14 Carolina
YNN (New York and Texas)

Other stories of interest:

1. ESPN Finally Launching Online for Time Warner Cable Subscribers Oct. 25th
2. Time Warner Cable Introduces Android App, But Will Wait for ‘Ice Cream’ Before Streaming Video
3. Updated: Time Warner Cable Launches Desktop Streaming Cable TV for ‘Authenticated’ Subscribers
4. Fox News Channel – Time Warner Cable Deal Will Increase Cable Rates for Millions
5. Your Next Time Warner Cable Set-Top Box: Roku

T-Mobile has scrapped the traditional two-year cell phone contract.

T-Mobile’s shift away from subsidized smartphones and standard two-year contracts could be a game-changer for American wireless consumers, but does the scrappy carrier have a good deal for you or mostly for itself?

T-Mobile is and has been America’s fourth largest carrier — the smallest among those offering nationwide home coverage. The provider has lost contract customers for years. T-Mobile’s coverage has been less than great in many areas and it often did not offer the latest and most popular smartphones. After its merger effort with AT&T was shot down by the Department of Justice for anti-competitive reasons, T-Mobile has attempted to remake itself by changing the rules under which most of us buy mobile service.

The biggest change of all is the end of the subsidized phone. For years, cell phone companies have offered free or low-cost phones to customers, earning back that subsidy by charging higher monthly rates and locking customers to two-year contracts with early termination fees. T-Mobile will still give you an affordable phone, only now you will pay it off in small installments over a two-year financing agreement.

What difference does this make? Customers who bounce from one two-year contract to the next may not see much difference. But if you keep your phone longer than two years or buy one elsewhere, your monthly rate with T-Mobile will no longer include an artificially higher price designed to recover the phone subsidy you no longer receive.

It also means nothing traps you with T-Mobile. If after six months you find their service unbecoming, you can leave without hundreds of dollars in termination fees. But customers on financing agreements will continue to make their payments for equipment purchases, and those phones will not be unlocked for use on another carrier until the remaining balance is paid off.

A typical T-Mobile customer looking for the latest iPhone will pay a $100 down payment and then finance the remaining balance, paying $20 a month for 24 months. Your monthly rate will start at $50 a month, which includes unlimited talk and texting, and a 500MB data allowance. If that is insufficient, an extra $10 a month will buy you an extra 2GB of data. If you want unlimited data, that plan is available for an extra $20 a month.

T-Mobile says their plans will save you $1,000 over the life of a two-year contract with AT&T or Verizon. We think they are exaggerating a bit.

Like their competition, T-Mobile is moving away from budget-minded “minute plans” that bundle calling, text and data. Instead, T-Mobile charges at least $50 a month for unlimited talk/text and a small data plan whether you want those features or not.

The Associated Press found that although T-Mobile ends up being the cheapest, the savings over its rivals is closer to $700 on average. The price over two years for a 16-gigabyte iPhone 5 with unlimited calling, unlimited texting and 2.5 gigabytes of data usage per month, excluding taxes, is:

• T-Mobile: $2,020
• AT&T/Verizon: $2,635 (2-3GB data plan)
• Sprint: $2,840 (unlimited data plan included)

Some other things to consider:

• Once your phone is paid off, your ongoing T-Mobile bill will no longer show a phone subsidy payback built into prices charged by other carriers;
• You can pay your phone off early, with no penalty;
• T-Mobile’s 4G network is a mix of HSPA+ and LTE. The more commonly encountered HSPA+ network gets good marks for speed, but a number of densely populated T-Mobile coverage areas surprisingly often default to their older 2G network, which is painfully slow. LTE is only available in about seven cities at the moment, so it is still a rarity;
• T-Mobile’s unlimited service is free from tricks and traps like soft caps and speed throttles. It also performs better than Sprint’s unlimited service on its overloaded 3G and spotty Clearwire 4G WiMAX network. Sprint’s LTE network is on the way… slowly. It seems to be rolling out first in small cities you have never heard of;
• T-Mobile’s coverage in rural and exurban areas is frankly terrible. Travelers on main highways may not encounter many signal gaps, but those living in small towns or off the beaten path may get a roaming signal or poor or no reception from T-Mobile’s own towers at all. The frequencies used for its data service also do not work as well indoors as its larger rivals.

T-Mobile channels Oprah in this new ad as the big four wireless cowboys get in touch with their feelings. But only one is ready to don a pink hat and ride off on his own. (1 minute)

Other stories of interest:

1. Sprint’s iPhone? Company Rumored to Introduce Iconic Phone in October
2. AT&T’s Apple iPhone 5 Customers Can Keep “Unlimited Data” Plans
3. Wireless Carriers’ Dream Come True: The End of the Phone Subsidy; T-Mobile May Start Trend
4. What Bandwidth Crisis: Unlimited Data War Erupts Between T-Mobile, Sprint, MetroPCS
5. Sprint Will Continue Offering Unlimited Data On Its Forthcoming LTE 4G Network

General Motors announced Monday it was planning to introduce built-in 4G wireless connectivity from AT&T in OnStar-enabled vehicles starting with the 2015 model year, gradually ending a relationship GM has maintained with Verizon Wireless since 1996.

The deal is part of AT&T’s aggressive expansion into the wireless connected-vehicle world and could enable streaming video and other bandwidth-intensive services not now supported by GM’s agreement with Verizon.

OnStar currently relies on Verizon’s CDMA digital network to provide a car phone and slow speed data network to share vehicle diagnostics and enable certain remote functions. Current vehicle owners can continue to use OnStar services delivered over Verizon’s wireless network. But starting in mid-2014, most new Chevrolet, Buick, GMC and Cadillac models will be equipped with AT&T 4G LTE service instead. In Canada, OnStar will continue to rely on Bell Mobility.

New GM vehicle owners receive one free year of OnStar’s basic service, which includes automatic collision notification, stolen vehicle and roadside breakdown assistance, remote door unlock, remote horn and light flashing to find a vehicle, remote vehicle diagnostics, and a built-in speakerphone that can be used to make or receive calls (after an initial trial, customers must buy additional minutes). Some newer GM models also allow OnStar staff to slow down a stolen vehicle and even disable it. After one year, the basic Safe & Sound package can be continued for $18.95 a month ($24.95 in Canada). Drivers that want to add turn-by-turn navigation pay $28.90 a month ($39.90 in Canada), which also includes all the basic features offered in the Safe & Sound package.

OnStar has traditionally only offered limited interactive data service with its telematics system, mostly powered through spoken voice commands. The new agreement with AT&T could mean your next GM vehicle will become a roving hotspot, powering smartphones, laptops, built-in televisions, and various in-car apps that need a 4G data connection to work well.

AT&T expects expansion into wireless in-car communications will be highly lucrative at a time when smartphone sales are starting to slow. There is no word on the cost for the AT&T-enabled version of OnStar, but prices will likely be higher than traditional OnStar service plans, and will vary depending on the amount of data consumed.

“We’re sitting on the greatest growth opportunity in history,” Ralph de la Vega, CEO of AT&T Mobility said in an interview with CNNMoney. “With Mobile Share, we don’t care so much anymore about what you’re doing on the network … but all those things like cars and home security are where the monetization opportunity is.”

In its latest annual Visual Networking Index, Cisco predicts by 2017 the average American will use a total of 6.2GB of data per month on various mobile devices. Last year, consumers used an average of 752MB. At current AT&T pricing without an unlimited data option, the average customer will pay at least $40 more per month in data use charges within four years.

AT&T’s rush into vehicle connectivity, home security, and wireless machine-to-machine communications will also place more burdens on AT&T’s network at the same time the company is complaining about spectrum shortages.

Ford Motor says GM’s OnStar system has one significant flaw: it lacks an upgrade path. GM vehicle owners are stuck with the technology that comes built-in with the car. Historically, that has been a problem. In the early 2000s, OnStar customers with older analog-only service lost access to OnStar completely when Verizon dismantled its analog wireless network. More recent GM vehicle owners are frustrated to find the newest OnStar features are only available to the most recent new buyers. Vehicles as little as 24 months old are still unable to use OnStar’s smartphone app, which enhances the value of OnStar for subscribers.

Ford says it will stick with its SYNC system, developed with Microsoft, which links the owner’s smartphone with the vehicle using Bluetooth. Users upgrading a phone can continue to use Ford SYNC by pairing the new phone with the in-car system, bringing along any new features like faster data connectivity.

Other stories of interest:

1. Verizon Wireless Earns More from Wireless Data Traffic That Costs Them Less
2. Verizon Wireless Hotspot Pricing Will Burn a Hole in Your Wallet With $20/GB Overlimit Fee
3. Verizon Wireless Introduces $50 Unlimited Plan… Good on Only Lower End “Feature Phones”
4. Verizon Wireless’ Back-to-School Promotions: $20 for 300MB Data Plan, $100 Trade-In Credit
5. Verizon Wireless Set to Abandon Unlimited Wireless Data On Its Forthcoming 4G Network

Verizon Wireless has created a new warning page about “high-risk apps” that can chew up your data allowance or kill a fully charged Android smartphone battery in a matter of hours.

“Occasionally we learn about apps in the Google Play™ Store that might have serious negative effects on your device,” the website states. “We work regularly with app developers to help them fix problems with their apps, and apps are removed from this list as soon as the issues are fixed.”

All of the apps on the baker’s dozen list are games:

	Asphalt 7:Heat
	Version: 1.0.4
	Developer: Gameloft
	Last Reviewed: January 2013

Description: When running, this app keeps the device from going to sleep mode. As a result, a device left untouched with the app running will drain the battery about 2.4 times faster than normal.

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	Burger
	Version: 1.0.4
	Developer: Magma Mobile
	Last Reviewed: October 2012

Description: When running, this app keeps the device from going to sleep mode. As a result, a device left untouched with the app running will drain the battery about 2.3 times faster than normal.

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	Doodle Jump
	Version: 1.13.8
	Developer: GameHouse
	Last Reviewed: September 2012

Description: When running, this app keeps the device from going into sleep mode. As a result, a device left untouched with the app running will drain the battery about three times faster than normal.

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	Draw Something
	Version: 1.11.15
	Developer: OMGPOP
	Last Reviewed: December 2012

Description: When running, this app keeps the device from going to sleep mode. As a result, a device left untouched with the app running will drain the battery about 2.7 times faster than normal.

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	Fruit Ninja Free
	Version: 1.6.2.0
	Developer: Halfbrick Studios.
	Last Reviewed: December 2012

Description: When running, this app keeps the device from going into sleep mode. As a result, a device left untouched with this app running will drain the battery about 2.2 times faster than normal.

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	Grand Theft Auto III
	Version: 1.3
	Developer: Rockstar Games, Inc.
	Last Reviewed: September 2012

Description: When running, this app keeps the device from going into sleep mode. As a result, a device left untouched with this app running will drain the battery about 1.8 times faster than normal.

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	Hill Climb Racing
	Version: 1.4.1
	Developer: Fingersoft
	Last Reviewed: January 2013

Description: When running, this app keeps the device from going into sleep mode. As a result, a device left untouched with this app running will drain the battery about 2.7 times faster than normal.

This app uses a large amount of data while running in the background.  A device left untouched with the app running could use as much as 6.4MB in 24 hours, or 190MB in a 30 day period.

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	Jail Escape
	Version: 1.1
	Developer: mazjustin
	Last Reviewed: October 2012

Description: When running, this app keeps the device from going to sleep mode. As a result, a device left untouched with the app running will drain the battery about 2.8 times faster than normal.

This app uses a large amount of data while running in the background. A device left untouched with the app running could use as much as 17MB in a 24 hour period, or more than half a gigabyte in  30 day period.

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	Need for Speed: Most Wanted
	Version: 1.0.46
	Developer: Electronic Arts, Inc.
	Last Reviewed: January 2013

Description: When running, this app keeps the device from going into sleep mode. As a result, a device left untouched with this app running will drain the battery about 4.5 times faster than normal.

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	N.O.V.A. 3 – Near Orbit
	Version: 1.0.2
	Developer: Gameloft
	Last Reviewed: September 2012

Description: When running, this app keeps the device from going into sleep mode. As a result, a device left untouched with this app running will drain the battery about 2.2 times faster than normal.

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	Osmos HD
	Version: 1.2.15
	Developer: Hemisphere Games
	Last Reviewed: October 2012

Description: When running, this app keeps the device from going to sleep mode.  As a result, a device left untouched with the app running will drain the battery about 3 times faster than normal.

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	Wreck It Ralph
	Version: 1.1
	Developer: Disney
	Last Reviewed: January 2013

Description: When running, this app keeps the device from going into sleep mode. As a result, a device left untouched with this app running will drain the battery about 2.3 times faster than normal.

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	Zombie Frontier
	Version: 1.0.6
	Developer: Feelingtouch Inc.
	Last Reviewed: December 2012

Description: When running, this app keeps the device from going into sleep mode. As a result, a device left untouched with this app running will drain the battery about 3.3 times faster than normal.

Other stories of interest:

1. Time Warner Introduces Live Video Streaming Enhancement for Android Devices, With Caveats
2. New Zippy Fast 4G iPad Burns Through AT&T/Verizon Usage Allowances in Hours
3. Verizon Wireless Swallows New Mexico Co-Op Plateau Wireless; Unlimited Data at Risk
4. Sprint Customers’ Treatment of 4G WiMAX: So Unimpressive They Shut It Off to Save Battery Life
5. Happy Days Are Here for Verizon Wireless Stockholders Over End to Unlimited Data

AT&T has once again received the dubious distinction of being America’s worst cell phone company, according to ratings (sub. required) from Consumer Reports.

AT&T’s bottom-of-the-barrel status has become something of an annual tradition in the consumer magazine’s ratings, as the company remains in last place year after year for dreadful performance, poor value, and downright lousy customer service. Its one bright spot: the company’s new 4G LTE service, which gets top marks for speed, although that rating comes before the majority of its customers are on the new network.

Verizon Wireless also took a tumble in the ratings published in the January 2013 issue. Verizon got downgraded for its new Share Everything plan, rated as only a fair value. Verizon’s vaunted customer service also declined significantly.

The highest ratings went to companies many never heard of:

• Consumer Cellular: This company resells AT&T service. The disparity between this top-rated, no contract provider and AT&T demonstrates that a bad customer experience with AT&T’s high prices and poor customer service can topple your ratings across the board. Consumer Cellular will face the same growing pains AT&T’s customers do in congested cities, but their customers seem to tolerate them better;
• U.S. Cellular: Top rated last year, this regional carrier provides service in the Pacific Northwest, Midwest, parts of the East and New England. The carrier, like the southern U.S. provider C-Spire, would probably have been acquired by one of the top-four carriers if the Justice Department seemed willing to accept further market consolidation. Its customers benefit from the company’s independence.
• Credo Mobile: Resells the Sprint network, but delivers superior customer service, which boosts its overall ratings. Formerly known as Working Assets, this progressive organization also enjoys loyalty because customers approve of the political and social causes with which it affiliates.

Overall, the magazine increasingly recommends consumers investigate no-contract or prepaid service plans before signing an expensive 2-year contract with the major four carriers. Pricing changes in 2012 have caused many subscribers to see bills rise, even as perks and benefits continue to erode. Device activation fees, upgrade fees, limits on early upgrades, restricted data plans, and all-or-nothing offerings that deliver (and charge) for features many consumers don’t use much have all reduced the value of contract service.

What keeps most customers coming back to another two-year contract is the chance to grab the hottest new smartphone at a discount. But consumers ultimately pay back whatever they have saved in higher fees over the life of the contract, which may make buying your own device at full price a better value with a no-contract plan.

Other stories of interest:

1. AT&T Scores Last (Again) in Consumer Reports’ Ratings; Oddly AT&T Reseller Scores Highest
2. Senator Amy Klobuchar To Introduce Cell Phone Consumer Empowerment Act: Protects Consumers from Excessive Cancel Fees
3. Canadians Trash Their Cell Phone Options: Bad Service, Worse Value; Koodo Rates Highest
4. Verizon Targets Frontier, AT&T and Cable ‘Digital Phone’ Landline Customers in Rochester, N.Y. and Conn.
5. Cell Phone Companies Back for More: Price Hikes, Mandatory Data Plans, Huge Bills

Phillip “I can see the duopoly from my house — why can’t the FCC?” Dampier

The New York Times is pondering whether Americans are paying too much for wireless broadband based on Long Term Evolution (LTE) technology. A new study now offers proof, noting U.S. customers pay three times as much, on average, for each gigabyte of data in contrast to European consumers.

The UK-based mobile industry group GSM Association offers evidence Americans are not getting the lower wireless broadband prices promised by the more advanced, cost-efficient LTE technology, although customers in other parts of the world are seeing savings.

According to the group’s findings, Verizon Wireless customers effectively pay $7.50 per gigabyte of data over the company’s 4G LTE network. That is three times more expensive than the European average of $2.50/GB, and more than 10 times higher than what Swedes pay: $0.63/GB, cheaper than many wired broadband providers’ overlimit fees.

Verizon Wireless’ Brenda Raney tried to defend the discrepancy, claiming that Verizon offers enhanced value bundles with unlimited voice, text, and mobile hotspot service. Having a data-only plan, Raney told the newspaper, would reduce the cost to $5.50/GB.

That is still more than twice as much as what Europeans pay.

So what is the real reason for the enormous price difference?

The wireless industry regularly claims that the vast expanse of the United States means a much larger investment in wireless technology and infrastructure, notably cell towers, to reach customers in suburban and rural areas. European countries, in contract, are much more compact and urban-focused, making infrastructure less costly.

But that has proven to be nonsense for Sweden’s Tele2, which not only operates a nationwide 4G cellular network in Sweden — a country with its own vast rural regions — but promises to deliver service to 99% of the country by the end of the year and already covers more than 100 Swedish municipalities. They deliver service at a fraction of the cost charged by Verizon. Tele2 remains undeterred by the “rural cost argument,” taking on the world’s largest country — the Russian Federation. It has already acquired 12 regional mobile operators in Russia, expanding service to more than 43 regions with over 22 million customers, and plans additional investments.

The real reason for the inflated price of service, unsurprisingly, is America’s lack of robust wireless competition, according to GSMA.

Europe has the largest number of competing providers — 38 of 88 operators with LTE technology are in Europe. Even the smallest countries have at least three major competitors. The U.S. has two major competitors, two smaller national carriers, and a dozen or more regional or prepaid operators totally dependent on the larger four to deliver national roaming service.

Until recently, Verizon Wireless had a veritable monopoly on LTE service as AT&T tries to catch up — one of the very rare moments Verizon directly challenged AT&T in advertising that distinguished the coverage differences between the two. These days, AT&T and Verizon mimic one another, often offering identically priced service plans. Customers who want to pay less have to reduce their expectations with smaller competitors that offer reduced coverage.

If you don’t want access to premium wireless broadband, American carriers will also gouge you for lesser 3G service.

U.S. consumers on two year contract plans spend an average of $115 a month for 3G service, according to a survey conducted by Ernst & Young. In the Netherlands, the average was $51; in Britain, $59 — about half the price.

The growing mobile phone bill has now reached the point where Ernst & Young’s Jonathan Dharmapalan suggests it is literally interfering with smartphone adoption and causing others to shut off the devices permanently after an experience with bill shock.

“The No. 1 reason for customers’ discontinuing their use of a smartphone service or not taking the option is the fear of overspending,” Dharmapalan said.

A former FCC senior Internet technology adviser attempted to explain away the vast discrepancies in pricing, offering this bit of analysis: Europeans talk and surf  less.

Other stories of interest:

1. 4G LTE Broadband Makes Inroads… But Only When the Price is Right: Overcharging=Failure
2. South Korea Set to Launch 100Mbps Wireless, Seamlessly Combines Mobile Broadband & Wi-Fi
3. PC Magazine Hands Out Fastest Wireless Data Awards, But Does It Matter?
4. New York Times Blasts Verizon Data Roaming Lawsuit: Their Argument is Weak
5. AT&T’s Rural Solution? FCC Supports AT&T’s 2.3GHz WCS Spectrum Plan for Nationwide 4G LTE Service

AT&T and Verizon: The Doublemint Twins of Wireless

Wireless carriers other than AT&T and Verizon Wireless have joined forces asking federal regulators to help level the playing field in wireless competition.

At this week’s convention of the newly-relaunched Competitive Carrier Association (CCA), Sprint, T-Mobile USA, Clearwire, C Spire, and more than 100 other small regional rural carriers joined forces in Las Vegas to sound the alarm about a wireless duopoly restraining competition and raising prices for consumers.

“Humpty Dumpty has been put back together again,” said C Spire CEO Hu Meena. “And while the identical twins sometimes agree to meet and discuss industry issues with other industry players, they seldom, if ever, support action that might better the industry as a whole.”

C Spire should know. The company filed a lawsuit against AT&T earlier this year claiming the phone giant manipulated its 700MHz band allocation to lock C Spire customers out of getting access to the latest smartphones.

“At some point, and that time is coming, regulators and politicians are going to have to acknowledge they have a choice to make: they are going to have to decide whether the communications industry, the fundamental driver of the information economy, is going to be regulated by true, healthy competition or by the government,” Meena said.

In the last 20 years, rampant consolidation has reduced the number of national wireless carriers down to four — Verizon Wireless, AT&T, Sprint, and T-Mobile. Filling in the gaps are various regional providers, all who depend on one of the major four to provide reasonable roaming service for customers traveling beyond the service areas of smaller companies. Without reasonable roaming, competitors are left at a serious disadvantage.

Another major problem is access to the latest smartphones. Major manufacturers largely design and market cell phones for the largest four companies, often relegating smaller providers to sell older or less prominent phones to customers. When phones do not work on the spectrum acquired by smaller competitors, roaming becomes a problem.

But beyond those issues is the question of wireless spectrum. Traditionally sold in competitive auctions, the deepest pocketed companies traditionally win the bulk of frequencies, leaving competitors with less desirable spectrum that has difficulty penetrating buildings or requires a more robust cell tower network.

Meena

Members of the CCA recognize that mergers and consolidation can bring costs down through economy of scale, but in their eyes, AT&T and Verizon’s actions have promulgated a new paradigm for wireless on Wall Street: consolidation around a handful of wireless carriers is healthy; having too many competitors is inefficient.

“Consolidation can introduce business efficiencies,” said Michael Prior, CEO of Atlantic Tele-Network. “But government has a role in making sure that infrastructure is used in a way that works for the entire country. All we’re asking the FCC to do is to make sure there is a level playing field.”

Observers expect the CCA to ask the FCC to set aside spectrum in future wireless auctions exclusively for smaller carriers to help protect what competition still exists.

“There used to be dozens of railroad companies,” Prior noted. “But the government didn’t allow certain companies to develop rails that wouldn’t allow trains to interconnect to rails run by other companies.”

Meena warned the same thing could happen in the wireless industry.

“We know what happened in the first 20 years of the industry where we have had many healthy competitors,” Meena said. ”There remains a false hope among too many carriers that the duopoly will one day become reasonable. But, we all know, whether we choose to admit it or not, that until all competitive carriers become fully committed to work together for open competition, the wireless industry playing field will remain harmfully tilted toward the duopoly. They will never give an inch unless and until they have to do so.”

Other stories of interest:

1. Moody’s Declares AT&T and Verizon the Winners — Sprint and T-Mobile Can “Never Catch Up”
2. Wall Street Wants Two Wireless Carriers for Americans: AT&T and Verizon
3. T-Mobile: Allowing Verizon to Acquire Airwaves from Cable Industry Against the Public Interest
4. Telecom Consolidation Nonsense from ZDNet: Wall Street Dream Ignores Consumer Nightmare
5. AT&T & Verizon’s Artificial Wireless Fiefdoms: Interoperability is the Enemy