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What Happens When a Verizon Wireless Dealer Forgets to Hang Up: “Selling Lies!”

Wireless World of Emerson

Wireless World of Emerson

A Verizon Wireless salesman that left a voicemail message offering a customer a new service plan that could save her money forgot to hang up the phone when he finished his message and broke into song singing, “Lies, lies, lies, selling lies” while criticizing his co-workers for reneging on the savings he promises.

“David” from the “Verizon Wireless Store” called Kristin Capone because she had evidently bought a phone from him last year.

“I’m just calling my customers letting them know that earlier this month there were changes in the price plan and there is a chance I can save you money,” David offered.

After thanking her for her time, the employee at Wireless World of Emerson, a “Premium Verizon Dealer” in Emerson, N.J., did not bother to hang up, and had some choice words for Capone and his co-workers that Capone shared on YouTube.

“Lies! Lies! Lies!,” David sang. “Selling lies. Can’t save her a f@@@ing dime. Come in, we’ll save you some money. Just like that. She comes in, sees to one of you guys. You guys look in and say, oh no, there’s nothing we can do and then I end up looking like a dou@@e and then she won’t want to buy.”

“David” seems to acknowledge his bad attitude at the end of the message.

“I’m being a crabby car salesman.”

http://www.phillipdampier.com/video/Crabby Verizon Salesman Forgets to Hang Up.mp4

A public relations headache for Verizon Wireless as one of its “premium dealers” decides to dismiss promises of savings as “selling lies.” (Warning: Contains profanity.) (1:42)

Verizon New Jersey: “It’s Good to Be King,” But Not So Good If You Are Without FiOS

Verizon's FiOS expansion is still dead.

Verizon’s FiOS expansion is over.

Some New Jersey residents and businesses are being notified by insurers they will have to invest in costly upgrades to their monitored fire prevention and security systems or lose insurance discounts because the equipment no longer reliably works over Verizon’s deteriorating landlines in the state.

It’s just one of many side effects of ongoing deregulation of New Jersey’s dominant phone company, Verizon, which has been able to walk away from service and upgrade commitments and oversight during the Christie Administration.

Most of the trouble is emerging in northwest and southeast New Jersey in less-populated communities that have been bypassed for FiOS upgrades or still have to use Verizon’s copper wire network for security, fire, or medical monitoring systems. As Verizon continues to slash spending on the upkeep of its legacy infrastructure, customers still relying on landlines are finding service is gradually degrading.

“The saving grace is that so many customers have dropped Verizon landlines, there are plenty of spare cables they can use to keep service up and running when a line serving our home fails,” said Leo Hancock, a Verizon landline customer for more than 50 years. “I need a landline for medical monitoring and besides cell phone service is pretty poor here.”

Hancock’s neighbor recently lost a discount on his homeowner’s insurance because his alarm system could no longer be monitored by the security company due to a poor quality landline Verizon still has not fixed. He spent several hundred dollars on a new wireless system instead.

Kelly Conklin, a founding member of the N.J. Main Street Alliance said he is required by his insurer and local fire department to have traditional landline service for his business’ sprinkler system, which automatically notifies the fire department if a fire starts when the business is closed. He has also noticed Verizon’s landlines are deteriorating, but he’s also concerned about Verizon’s prices, which the company will be free to set on its own five years from now, after an agreement with the state expires.

tangled_wires“The deal allows Verizon to raise basic landline phone rates 36 percent over the next five years and it allows them to raise business line rates over 20 percent over the next five years,” said Seth Hahn, a CWA staff representative. Beyond that, the sky is the limit.

Most of New Jersey wouldn’t mind the loss of traditional landlines so much if they had something better to replace them. Thanks to the state’s relatively small size, at least 2.2 million residents do. Verizon has managed to complete wiring its fiber to the home service FiOS to 358 towns in the state. Verizon hoped fiber optics, although initially expensive to install, would be infinitely more reliable and easily upgradable, unlike its aging copper-wire predecessor. Unfortunately, there are 494 towns in New Jersey, meaning 136 communities are either stuck using Verizon DSL or dial-up if they don’t or can’t receive service from Comcast.

So how did so many towns get left behind in the fiber revolution? Most of the blame is equally divided between Verizon and politicians and regulators in Trenton.

Verizon did not want to approach nearly 500 communities to secure franchise agreements from each of them, dismissed by then Verizon CEO Ivan Seidenberg as a “Mickey Mouse procedure.” Verizon wanted to cut a deal with New Jersey to create a statewide video franchise law allowing it to offer video service anywhere it wanted in the state.

A November 2005 compromise provided a way forward. In return for a statewide video franchise that stripped local authority over Verizon’s operations, Verizon would commit to aggressively building out its FiOS network to every home in the state where Verizon offered landline telephone service.

The entire state was to be wired by 2010. It wasn’t. Two events are responsible: The arrival of Gov. Chris Christie in 2010 and the retirement of Mr. Seidenberg the following summer.

Christie

Christie

Christie’s appointments to the Board of Public Utilities, which used to hold Verizon’s feet to the fire as the state’s telecommunications regulator, instead put the fire out.

“They were Christie’s cronies,” charged several unions representing Verizon employees in the state.

The then incoming president of the BPU was Dianne Solomon, wife of close Christie associate Lee Solomon. The BPU is a technocrat’s paradise with hearings and board documents filled with highly technical jargon and service quality reports. Solomon brought her only experience, as an official with the United States Tennis Association, to the table. Administration critics immediately accused the governor of using the BPU as a political patronage parking lot. When he was done making appointments, three of the four commissioners on the BPU were all politically connected to the governor and many were accused of lacking telecommunications expertise.

When communities bypassed by FiOS complained Verizon was not honoring its commitment, the governor and his allies at the BPU proposed letting Verizon off the hook. Instead of demanding Verizon finish the job it started, state authorities decided the company had done enough. So had Verizon’s then-incoming CEO Lowell McAdam, who has since shown almost no interest in any further expansion of fiber optics.

But the working-class residents of Laurel Springs, Somerdale, and Lindenwold are interested. But they have the misfortune of living in more income-challenged parts of Camden County. So while Cherry Hill, Camden itself, and Haddonfield have FiOS, many bypassed residents cannot even get DSL from Verizon.

(Image relies on information provided by the Inquirer)

(Image relies on information provided by the Inquirer)

The Inquirer recently offered readers a glimpse into the life of the FiOS-less — the digitally redlined — where the introduction of call waiting and three-way calling was the last significant telecommunications breakthrough from Verizon.

“All Verizon offers here is dial-up,” Dawn Amadio, the municipal clerk in Laurel Springs, said of the Internet service, expressing the frustration of many residents and local officials. “That’s why everybody has Comcast. What does Verizon want us to do? Live in the Dark Ages?”

Or move to a more populated or affluent area where Verizon’s Return on Investment requirements are met.

The state government could have followed Philadelphia, which demanded every city neighborhood be wired as part of its franchise agreement with Verizon in 2009. So far, Verizon is on track to meet that commitment with no complaints by next February.

Further out in the eastern Pennsylvania suburbs, Verizon got franchise agreements with the towns it really wanted to serve — largely affluent with residents packed relatively close to each other. Verizon signed 200 franchise agreements in Bucks, Delaware, Montgomery, and Chester Counties in Pennsylvania. It managed this without a statewide video franchise agreement. But at least 34 towns in those counties were left behind.

A deal between Verizon and Trenton officials was supposed to avoid any broadband backwaters emerging in New Jersey.

But state officials also allowed a requirement that mandated Verizon not skip any of 70 towns it sought guarantees would be upgraded for FiOS, mostly a mix of county seats, poor neighborhoods, and urban areas in the northern part of the state. Verizon could wire anywhere else at its discretion. Trenton politicians never thought that would be an issue because FiOS would sell itself and Verizon could not possibly ignore consumer demand for fiber optic upgrades.

But Verizon easily could after its current CEO found even bigger profits could be made from its prestigious wireless division. McAdam has shifted the bulk of Verizon’s spending out of its wireline and fiber optic networks straight into high profit Verizon Wireless. If he can manage it, he’d like to shift New Jersey’s rural customers to that wireless network as well, with wireless home phone replacements and wireless broadband. Only state oversight and regulatory agencies stand in the way of McAdam’s vision, and in New Jersey regulators have chosen to sit on the sidelines and watch.

That is very bad news for 99 New Jersey towns where FiOS is available to fewer than 60 percent of residents (Gloucester Township, Mount Laurel, Deptford, Pennsauken, and Voorhees, among others.)

Another 135 New Jersey towns, including a group of Delaware River municipalities along Route 130 in Burlington County and most of the Jersey Shore, have no FiOS at all. Other than in the county seats, Verizon has not extended FiOS to any other towns in Ocean, Atlantic and Cape May Counties, reports the newspaper.

Verizon never promised New Jersey 100% fiber, comes the response from Verizon spokesman Lee Gierczynski. Instead of future expansion, Verizon will step up its efforts to get customers away from the cable company in areas where Verizon offers FiOS service. The company says it spent $4 billion on FiOS in New Jersey and it is time to earn a return on that investment.

But local communities have already discovered Verizon earning fringe benefits by not offering fiber optic service.

verizonfiosIn Laurel Springs, customers have largely fled Verizon for Comcast, which is usually the only provider of broadband in the area. A package including broadband and phone service costs less than paying Verizon for a landline and Comcast for Internet access, so Verizon landline disconnects in the town are way up.

Mayor Thomas Barbera discovered that once Verizon serves fewer than 51% of phone customers in town, it can claim it is no longer competitive and devalue its infrastructure and assets to virtually zero and walk away from any business property tax obligations.

“Once they skip,” Barbera told the Inquirer, “we don’t get [Verizon’s] best product, and then they say we can’t compete and we don’t owe you our taxes. It’s good to be king.”

Correction: With our thanks to Verizon’s manager of media relations Lee Gierczynski for setting the record straight, we regrettably reported information that turned out to be in error. The amended Cable Act that brought statewide video franchising to New Jersey never required Verizon to build out its FiOS network to every home in New Jersey where it offered landline telephone service. Instead, the agreement required Verizon to fully build its fiber network to 70 so-called “must-build” municipalities

Gierczynski also offers the following rebuttal to other points raised in our piece:

No one is disputing the fact that Verizon is spending less on its wireline networks.  The spending is aligned with the number of wireline customers Verizon serves, which has declined by more than 50 percent over the last decade.  The implication that this decreased investment is leading to a deterioration of the copper network is what is wrong. Over the last several years, Verizon New Jersey has spent more than $5 million just on proactive copper maintenance initiatives that have led to significant decreases in service complaints. The BPU’s standard for measuring acceptable service quality is the monthly customer trouble report rate – which is the best overall indicator of network reliability.  The BPU’s standard is 2.3 troubles per 100 access lines.  Over the last several years, Verizon’s performance across the state has consistently been below that standard, even in places in northwest and southeast New Jersey primarily served by copper infrastructure.  The 2014 trouble rate for southeastern New Jersey towns like Hopewell (0.3 troubles per 100 lines) and Upper Deerfield (0.34 per 100 lines) are well below the BPU’s standard.

Verizon is on track to meet its build obligations in those municipalities by the end of this year as statutorily obligated to do (not 2010 as you wrote) and also has deployed its network to all or parts of 288 other communities across New Jersey.   Today Verizon offers its video service to more customers than any other single wireline provider in the state.

 

No More Subsidies on iPhones at Verizon or AT&T: Buy Your Own Phone on a Payment Plan

next edgeAT&T and Verizon Wireless are ditching subsidies for the popular (and expensive) Apple iPhone in favor of straight installment payment plans.

9to5Mac reports Apple has sent a memo to employees outlining major changes in how iPhones will be sold to AT&T and Verizon Wireless customers.

Apple iPhones sold via AT&T and both Apple’s retail and online stores will shift exclusively to AT&T’s Next financing plans this month and end device subsidies. AT&T Next allows customers to buy a device at retail price and pay it off in 20, 24, or 30 installments on their AT&T bill. The primary benefit of the Next plan is it permits customers upgrade to a newer device after 12, 18, or 24 installment payments. For now, customers transitioning away from their existing plan to Next will be able to keep their unlimited AT&T data plan.

iphone6Verizon Wireless is also planning to drop its two-year subsidy programs, perhaps entirely across all devices, as early as the end of this summer. That will force Verizon Wireless customers onto the Edge installment payment program unless they are willing to pay for a device upfront.

But Verizon will tighten the screws even more on iPhone users by blocking the Edge Up feature for Apple phones. Instead of being eligible for an early upgrade after 18 months, Verizon will commit its iPhone customers to a full two-year waiting period or until the phone is completely paid off. Magnanimously, Verizon will let the customer keep the phone after they pay it off completely. It is unclear if Verizon will allow their legacy unlimited data customers to participate in the Edge program without forfeiting their unlimited data plan.

For many customers, this will represent a distinction without much difference. Phone subsidies have always been effectively paid back to the wireless carrier through artificially high service plan rates charged over the length of a two-year contract. The installment payment plan brings the cost of the phone subsidy out into the light where a customer will see (and pay) a separate installment payment for their device instead of having the subsidy’s recovery buried in the price of service. But Verizon has clearly sought constraints on its iPhone customers who aggressively pursue upgrades at the appearance of any new iPhone model. Going forward, they will have to pay off any remaining installments owed on their old phone before upgrading to a new one.

Verizon Buys AOL for $4.4 Billion; Bolsters Verizon’s Mobile Video/Advertising Business

aolVerizon Communications this morning announced it will buy AOL, Inc., in a $4.4 billion cash deal that will provide Verizon with powerful mobile video and advertising platforms.

Originally known for its ubiquitous dial-up Internet access, AOL today is better described as a content and advertising aggregator — putting online video in front of viewers bolstered by AOL’s powerful advertising technology that can match a targeted advertising message to a specific viewer in milliseconds.

AOL’s portfolio also includes the well-known EngadgetTechCrunch and Huffington Post websites, which many analysts expect will not be part of the deal, quickly spun off to a new owner(s) to avoid any political headaches over Verizon’s control of the well-known content sites, some including coverage critical of Verizon.

Verizon-logoAll signs point to the AOL acquisition as more evidence Verizon management is shifting priorities to its mobile business, Verizon Wireless. In 2014, Verizon acquired the assets of Intel Media, which was planning an Internet TV service called OnCue. Verizon’s acquisition will help it develop an alternative television platform and many analysts expect it will primarily reach Verizon Wireless customers.

Complimenting online video with AOL’s ad placement and insertion platform will likely be the best chance Verizon has to monetize that video content.

“Certainly the subscription business and the content businesses are very noteworthy,” confirmed Verizon’s president of operations, John Stratton. “For us, the principal interest was around the ad tech platform.”

http://www.phillipdampier.com/video/Bloomberg Why Verizon Coveted AOLs Ad Technology and Mobile Video 5-12-15.flv

Bloomberg says Verizon’s real interest in AOL is their online advertising platform, which can bolster Verizon Wireless’ mobile video service. (2:39)

Verizon’s $4 billion investment in AOL did not go into expanding its fiber optic platform FiOS.

Verizon Wireless Multicast

Verizon Wireless Multicast

“For the price it’s paying for AOL, Verizon could deploy its FiOS broadband service across the rest of its service area, bringing much-needed services and competition to communities like Baltimore, Boston and Buffalo,” said Free Press research director S. Derek Turner. “Instead, the company is spending a fortune to wade into the advertising and content-production markets. In terms of the latter, Verizon has already shown a willingness to block content and skew news coverage.”

As Stop the Cap! reported last week, that isn’t a surprise to some utility companies that believe all signs point to Verizon’s growing disinterest in its wireline division. Florida Power & Light expects Verizon will become a wireless only company within the next 10 years.

While AT&T explores expanding its wireless service internationally and seeks approval for its acquisition of satellite service DirecTV, Verizon Wireless is moving to monetize increased customer usage of its network with the forthcoming introduction of a video service this summer. The product would offer a mix of ad-supported and paid short video content and may offer live multicast programming that can reach a larger audience without disrupting network capacity.

Increased viewing of high bandwidth video will force Verizon customers to continually upgrade data plans, further monetizing Verizon’s wireless business. AOL’s ad insertion technology will allow Verizon to earn advertising income from viewers, creating a dual revenue stream.

Verizon can also sell advertisers information about its massive customer base of wired and wireless customers, including their browsing habits and demographic profile to deliver “data-driven marketing and addressable advertising.”

http://www.phillipdampier.com/video/Bloomberg Verizon-AOL Deal 1999 All Over Again 5-12-15.flv

Bloomberg News puts together several of Verizon’s puzzling recent acquisitions, which point to a shift of Verizon’s business towards its mobile and content platforms. (5:42)

LTE-Unlicensed: How the Wireless Industry Plans to Conquer Your (and the Cable Industry’s) Home Wi-Fi Hotspot

special reportWith billions of dollars in new revenue and royalties to be made, Qualcomm and some members of the wireless industry are pushing regulators to quickly approve a new version of LTE wireless technology that will share many of the same frequencies used by home and business Wi-Fi networks, creating the potential for speed-killing interference.

Wireless operators believe LTE-Unlicensed (LTE-U) could be used to offload much of the growing wireless data traffic off traditional 4G LTE wireless data networks. With the cost of securing more wireless spectrum from regulators growing, LTE-U technology would allow operators like AT&T, Verizon, Sprint and T-Mobile to use the U-NII-1 (5150-5250MHz) and U-NII-3 (5725-5850MHz) unlicensed bands currently used for Wi-Fi to deliver high-speed wireless broadband traffic to their customers.

Qualcomm and Ericsson, behind the newest iteration of LTE, have a vested interest promoting it as the ideal choice for metrocell, indoor enterprise, and residential small cell applications. Every manufacturer incorporating LTE-U technology into everything from carrier-owned microcells to smartphones will owe royalty payments to both companies. With billions at stake, Qualcomm is doing everything possible to tamp down fears LTE-U signals will create harmful interference to Wi-Fi signals.

qualcomm lte-u

http://www.phillipdampier.com/video/CES2015 Qualcomm Demonstrates LTE-U 1-2015.mp4

At the Consumer Electronics Show in Las Vegas held in January, a Qualcomm representative went as far as suggesting LTE-U will improve home Wi-Fi service. (5:42)

RCRWireless News:

[Qualcomm] set up a screened room with eight pairs of access points occupying the same channel and added Wi-Fi access-point terminals in one room and LTE-U terminals in another. The results show the average throughput of 3.3Mbps with Wi-Fi alone more than doubled to 6.7Mbps when the LTE-U access point was introduced.

In another test to show that LTE-U is a better neighbor to Wi-Fi than Wi-Fi itself, they took eight Wi-Fi nodes and replaced four of them with LTE-U nodes, the result of which showed a 1.9Mbps increase in average Wi-Fi throughput. In almost every test, the LTE-U enhanced network outperformed traditional Wi-Fi.

Burstein

Burstein

Industry observer Dave Burstein is concerned advocates of LTE-U are trying to rush approval of the technology without verifying Qualcomm’s non-interference claims.

“The telcos are considering 40 and 80MHz channels that could easily swallow half of more of the Wi-Fi spectrum,” Burstein writes in response to an EE Times article about the technology. “If Wi-Fi is important, that’s a mistake to allow. Advocates are trying to rush it through even though there is not a single independent test or field trial.”

Qualcomm dismisses the interference complaints pointing to its own research showing the two standards can co-exist adequately. But multi-billion dollar wireless companies with nationwide Wi-Fi networks at stake are far less confident. In fact, LTE-U has already divided the two largest wireless carriers in the United States. Verizon Wireless is an original proponent of LTE-U while AT&T has expressed “concern,” a polite way of saying it isn’t happy. What separates AT&T and Verizon Wireless? AT&T has invested in a nationwide network of more than 34,000 Wi-Fi hotspots. Verizon offers just over 5,000, most for FiOS customers or those in especially high traffic venues.

A Stanford University professor with no ties to Qualcomm or the wireless industry privately shared his belief allowing 5GHz Wi-Fi signals to commingle with LTE-U is going to cause problems.

lte-u-unlicensed-spectrum-v3The development of “Wild West” Wi-Fi has always tracked differently than the licensed cellular/wireless business. Over more than a decade, evolving Wi-Fi standards have come to expect interference from other nearby Wi-Fi signals. In a densely packed city, more than two dozen Wi-Fi signals can easily be found all competing for their own space across the old 2.4GHz and newer 5GHz unlicensed bands.

Wi-Fi proponents credit its robustness to its “politeness protocol.” Before a wireless router or home hotspot fires up its Wi-Fi signal, it performs several tests to check for other users and constantly adjusts performance by backing off when it discovers interference from other signals. That is why a user can receive strong Wi-Fi signals but still endure reduced performance, as the hotspot accommodates nearby hotspots and other traffic.

It works reasonably well, according to Rupert Baines, a consultant at Real Wireless.

“But [Wi-Fi signals] are delicate, and they rely on implicit assumptions that there aren’t other things there (or aren’t too many),” Baines told EE Times. “In effect, they behave as though the unlicensed band were not technology neutral but were Wi-Fi only.”

The intrusion of LTE-U changes everything.

http://www.phillipdampier.com/video/Wireless Week Tuesdays with Roger LTE-Us Gain is Wi-Fis Loss 3-24-15.flv

On the March 24, 2015 episode of Tuesdays with Roger, Recon Analytics’ founder Roger Entner talks with Wireless Week about the questions raised as major carriers, including T-Mobile and Verizon Wireless, plan to launch LTE into unlicensed territory. Concerns abound, particularly for consumers and companies who rely on Wi-Fi and don’t want licensed use in unlicensed bands to interrupt that service. (7:31)

Change in and of itself is not necessarily a bad thing, especially if LTE-U is superior to Wi-Fi, and some proponents suggest it is. Jag Bolaria, an analyst at The Linley Group, argues LTE better manages data/call handoff better than Wi-Fi access points can. LTE is also a more efficient spectrum user than Wi-Fi.

Last week, South Korea’s LG U+ demonstrated LTE-U was capable of 600Mbps speed, eight times faster than traditional LTE. But to accomplish that level of speed, LG U+ had to occupy 60MHz of bandwidth in the 5.8GHz band and allocate an extra 20MHz from its traditional LTE service. The company plans to further expand its use of South Korea’s 5.8GHz unlicensed band by occupying 80MHz of it to further boost speeds to 750Mbps. But the company did not say how the tests affected others sharing the same frequencies.

If LTE-U is superior, then why not gradually move every user towards the technology and away from Wi-Fi?

Aptilo Networks AB CEO Torbjorn Ward answers LTE-U is a solution in search of a problem.

“I think LTE on unlicensed sounds like a good idea if it wasn’t for the fact that there are four billion devices on Wi-Fi out there,” he told Light Reading, noting that 802.11ac can already run at 100Mbps, so there’s little need for the LTE boost. “I think when it comes to unlicensed, you can do a longer range with LTE, but I don’t see the full benefit.”

That does not seem to matter to LTE-U’s developers or cell phone companies that lack robust Wi-Fi networks of their own.

as-is

In the original Qualcomm/Ericsson proposal, both companies promote the fact they could launch LTE-U in the unlicensed Wi-Fi bands “as-is.” That is a big problem for AT&T and other Wi-Fi users because LTE-U evidently employs few, if any protection protocols in its initial specifications for other traffic. Verizon Wireless is reportedly lobbying against the development of interference protection protocols and has publicly asserted its interest in deploying LTE-U regardless of other users.

“In [the] USA, there are no requirements for unlicensed deployment that require changes to LTE air interface,” Verizon stated in its proposal: “New Band for LTE deployment as Supplemental Downlink in unlicensed 5.8GHz in USA.”

LTE-Unlicensed has been characterized as "rude" for not avoiding interference to other users.

LTE-Unlicensed has been characterized as “rude” for not avoiding interference to other users.

Clint W. Brown, business development director of mobility wireless connectivity at Broadcom, and a vice-chairman of the Wi-Fi Alliance counters it is premature to approve LTE-U in the unlicensed Wi-Fi band without more testing and information about its interference protocols.

“We’ve heard about the tests they’ve done, but it’s not factual,” Brown told EE Times. We haven’t seen the data and we don’t know how the tests were set up. First, I’d like to see if [LTE-U] can detect low-level signals. Second, I want to make sure it features a ‘Listen before Talk’ decision process so that LTE-U will wait for an opening rather than barging into the conversation already taking place in the unlicensed spectrum. Third, there should be a back-off mechanism, when it sees a collision. “We aren’t aware of any publicly available documents explicitly stating those attributes.”

The Federal Communications Commission has also now taken an interest and issued a public notice asking stakeholders and consumers to share their thoughts on LTE-U and a companion technology known as Licensed Assisted Access (LAA) that would hand off data sessions between a wireless carrier’s traditional 4G LTE network and LTE-U.

The makes the discussion political as well as technical. The FCC traditionally permits industry groups to define standards, but Republican Commissioner Mike O’Rielly now worries the FCC might butt into that process.

“The decision to jump into this space rather casually causes me great concern,” O’Rielly said. “In particular, any step that could insert the commission into the standards work for LTE-U comes with great risk. I will be vigilant in ensuring that the commission’s involvement does not result in taking sides with various stakeholders, hindering technological innovation, or having any say about what technologies should or should not be deployed.”

monopolyFor the moment, O’Rielly’s concerns about the FCC are premature as long as a division exists over LTE-U among many of the industry players:

  • Companies FOR LTE-U: Verizon, China Mobile, Qualcomm, Ericsson, NTT DoCoMo, T-Mobile USA, Deutsche Telekom, TeliaSonera, and China Unicom.  Equipment manufacturers also in support: Nokia, NSN, Alcatel-Lucent, LG, Huawei, ZTE, Hitachi, Panasonic, and others;
  • Companies AGAINST LTE-U (as now defined): Orange, Telefónica, Vodafone, AT&T, Sprint, SouthernLINC, US Cellular, DISH and a handful of vendors.

Burstein also uncovered evidence the wireless industry may be stacking the deck against increased competition and consumers. He found 11 of the world’s largest wireless companies (including AT&T, T-Mobile, and Sprint) quietly colluding on a proposal that would block anyone other than currently licensed LTE users from being able to use LTE-U on a standalone basis. The opaquely-titled proposal, “Precluding standalone access of LTE on unlicensed carriers,” is at least frank about its reasoning: “Standalone deployment in unlicensed spectrum implies drastically different business models from nowadays and might impact the value chain.”

In other words, if consumers are able to get savings from LTE-U using a new generation of non-traditional providers like Republic Wireless or Cablevision’s Freewheel that do not depend primarily on cellular networks, it could cost those 11 traditional wireless companies billions in lost revenue. To stop that, the companies propose requiring a special LAA “guard signal” to stop standalone access of LTE-U. Since only licensed cell phone companies have access to those frequencies, it automatically locks out new upstarts that lack mobile spectrum of their own.

Sneaky insertions like that may be exactly why the Obama Administration’s FCC is being more activist about monitoring the wireless industry, potentially cutting off anti-competitive proposals before they can become adopted as part of a formal technical standard.

http://www.phillipdampier.com/video/Fairness to Wi-Fi and LTE unlicensed 5-8-2015.mp4

RCRWireless News gets deep into the development of LTE-Unlicensed and how it will impact cellular infrastructure, Wi-Fi and small cells. (25:39)

Verizon Wireless to Customers Looking for a Better Deal: Goodbye and Good Luck With Competitors’ Inferior Service

Verizon Wireless: The Neiman Marcus of mobile providers

Verizon Wireless: The Neiman Marcus of mobile providers

A customer retention call with Verizon Wireless is short and to the point: enjoy the coverage you get from us now at the prices we charge or cancel and live with inferior cell phone service from one of our competitors.

Verizon chief financial officer Fran Shammo waved goodbye to 138,000 Verizon Wireless customers in the last three months and he could care less.

“If the customer who is just price-sensitive and does not care about the quality of the network—or is sufficient with just paying a lower price—that’s probably the customer we’re not going to be able to keep,” he said in the company’s quarterly earnings call today.

The wireless industry’s price war has not yet inflicted much damage on Verizon, which considers itself above the fray.

Average revenue per customer has started to significantly decline for the first time in wireless industry history, despite efforts to bolster earnings with expensive data plans and bundling services, including unlimited voice calling most cell phone users no longer care about. Both T-Mobile and Sprint are resorting to slashing prices and reducing the fine print to pick up business, with T-Mobile being the more successful of the two pulling it off. But the combined market share of Sprint and T-Mobile remains a fraction of what AT&T and Verizon Wireless have captured.

verizon greedVerizon believes it has a premium product and expects to be paid for it. Like a Neiman Marcus of the wireless industry, customers can expect a superior level of service, if they can afford to pay for it.

To keep customers dazzled, this summer Verizon Wireless is planning a new wireless video service featuring content from the NFL and likely more. Verizon hopes customers without unlimited data plans will be willing to pay several dollars extra for the new streaming service. But perhaps not too many extra dollars. Verizon executives have discovered a loophole in the FCC’s new Net Neutrality regulations allowing video content to be sponsored by Verizon or its advertising partners and exempt from usage allowances or caps.

Known as “zero-rating,” the practice is much more common overseas, where content providers pay for customer’s usage of their applications. Critics call the practice an end run around Net Neutrality. The FCC has continued to avoid the issue of broadband usage caps and usage-based billing, which ISPs have interpreted to mean a green light on the practice. In fact, some earlier comments from the FCC suggest the agency believes subsidized Internet traffic might be beneficial to consumers. Verizon pockets the money in either case.

Tim Berners-Lee, who created of the World Wide Web, called zero-rating “positive discrimination,” giving too much power to Internet providers.

“Zero-rated mobile traffic is blunt anti-competitive price discrimination designed to favor telcos’ own or their partners’ apps while placing competing apps at a disadvantage,” added Antonios Drossos, managing partner of Rewheel. “A zero-rated app is an offer consumers can’t refuse.”

Verizon Wireless has not yet priced its forthcoming video offering, but it could be marketed as a monthly add-on feature or as a pay-per-view option.

http://www.phillipdampier.com/video/Bloomberg Verizon Bids Good Riddance to Customers Leaving for a Cheaper Deal 4-21-15.flv

Bloomberg reporters talk about Verizon’s disinterest in competing with other carriers in the ongoing price war, and is fine with letting price-sensitive customers leave. It won’t be cutting prices anytime soon. (2:01)

Apple Stores Accused of Allowing Crooks to Buy Smartphones and Bill Them to Random AT&T/Verizon Customers

Phillip Dampier March 12, 2015 AT&T, Consumer News, Verizon, Video, Wireless Broadband 1 Comment
KMGH Denver reporter Marshall Zelweger holds up some of the emails received in the newsroom from victims that had new iPhone 6 smartphones billed to their account. (Image: KMGH-TV/Denver)

KMGH Denver reporter Marshall Zelinger holds up some of the 50 emails received in the newsroom from victims that had new iPhone 6 smartphones billed to their Verizon Wireless account in February. (Image: KMGH-TV/Denver)

If you want a new iPhone 6 and don’t want to bother paying for it, buy one from an Apple store and they just might bill your purchase to a unknowing third-party with few or no questions asked.

The scam, which first emerged last month, has now spread coast to coast and now involves more than 100 illegally obtained iPhones that victims complain were billed to them with little or no verification by Apple or wireless carriers. Many of those orders, but not all, originated inside Apple retail outlets and AT&T told one Connecticut victim they are being hampered in their fraud investigation by Apple, which is allegedly not cooperating with the wireless carrier.

In Denver, dozens of victims shared their stories with KMGH-TV back in February when the fraud first appeared.

“We have heard from more than 50 customers who said their accounts have been charged for new iPhone 6s, and new service plans or altered service plans, that they never requested,” reporters told viewers.

Verizon Wireless and their customers were the original targets, and Verizon initially blamed their own customers for the fraud.

Denver area resident Terri Olson was livid after Verizon accused her son of ordering new iPhones on her business account.

“He happened to be in the office that day,” said Olson. “We’re like, ‘Wow, he’s here. He’s not on the phone with Verizon.'”

Verizon promised it would drop the charges and tighten security on her account, but two days later, Verizon called confirming they had just accepted and shipped an order for four new iPads.

“She explained to me that she had my son on the other phone line, on hold. Funny thing, he was here with me,” Olson told KMGH. “We proceed, later that day, to get an email confirmation from Verizon that our order is shipping to Henderson, Nevada — (the order) that was supposedly stopped.”

Olson was able to get FedEx confirmation the four iPads were indeed sent to Henderson and signed for by someone, and it was not her son.

“It’s no way to run a business. If I did this to my customers, oh my God, we’d be out of business,” said Olson.

A few days later, more than $2,000 in fraudulent charges showed up on her Verizon bill, and the company was stalling on crediting her account.

“Basically, I’m risking my entire fleet of cell phones and data plans and iPads and everything because I don’t want to pay thousands of dollars ahead, waiting for this supposed credit,” said Olson. “I have already gone up the food chain. I’ll continue to go up the food change. We’re not taking no for an answer.”

Another Denver victim suddenly received news he was the proud new owner of four new iPhone 6 smartphones from Verizon Wireless, despite the fact he was an AT&T customer and had never authorized the purchase of the phones or the two-year contracts that came with them. A Verizon store told him if he didn’t return the phones, he’d be on the hook for their full value — $449 each as well as $160 in service charges.

http://www.phillipdampier.com/video/KMGH Denver More than 50 Verizon customers tell 7NEWS they are victims of unauthorized charges on their accounts 2-10-15.mp4

In February, KMGH in Denver reported more than 50 viewers were billed for illegally obtained Apple iPhones charged to their Verizon Wireless accounts. (2:35)

Verizon couldn’t believe the security problem was on their end or at their authorized resellers, so they initially blamed customers in a statement:

As we have stated before, there is no evidence of a data breach at Verizon Wireless that would put our customers’ information at risk. In order for us to look into this further, we will need to work with our customers one-on-one.

In fraud cases, we often find customers have been tricked or persuaded to provide information that allows fraudsters to compromise their accounts. But without the further information you have offered to provide on these particular cases, we cannot determine what has happened.

That triggered a social media backlash.

“For them to suggest that this was phishing and effectively blame the customer is even more appalling,” wrote one victim. “I realize phishing happens too and folks are duped, but that is not the way this happened in my case.”

A North Carolina church was billed for 17 illegally-obtained iPhone 6 smartphones, totaling more than $10,000. (Image: WAVY-TV/Norfolk)

A North Carolina church was billed for 17 illegally-obtained iPhone 6 smartphones, totaling more than $10,000. (Image: WAVY-TV/Norfolk)

Verizon Wireless has been the victim of phishing attempts inviting customers to use their Verizon Wireless login credentials and a four digit billing code which many might assume to be the last four digits of their Social Security number to get a one-time credit on their account. The link actually leads to a fraudulent website, where information obtained by the hacker could be used to log into a legitimate customer’s Verizon Wireless account. But a Verizon store representative tells Stop the Cap! that alone would not be enough to complete a purchase at a retail store.

“A phishing fraud victim would be providing the crook login information that could be used to order equipment off Verizon’s website, which seems to be a lot less risky than walking into a retail store to commit fraud,” a Verizon store employee not authorized to speak to the media tells Stop the Cap! “Verizon confirms direct online orders right away with customers, so they would know immediately if there was something wrong with their account. They wouldn’t usually know if a third-party retail reseller billed a phone to their account until the bill or the phone came.”

After the number of fraud reports ballooned, Verizon Wireless evidently tightened its own internal security because by late February, the fraudsters moved on to AT&T.

In Hartford, Conn., Meg O’Brien found out she was a victim when her own phones stopped working.

“Three of our four phones had no service,” O’Brien told Hartford’s WFSB-TV. When she called AT&T, they knew straight away what was happening. “They responded by saying ‘oh – hold on a minute – there’s obviously some fraud…you have three new iPhone 6’s’ and I said ‘ah no we have no iPhone 6’s’.”

AT&T told O’Brien she was far and away not the only victim, and AT&T was concerned because Apple reportedly was not cooperative assisting AT&T in tracking down the Apple retail store(s) where the theft originated. AT&T did confirm the thieves were able to acquire the equipment by charging it to random AT&T wireless accounts.

The Apple store(s) involved allegedly did not need proof of identity or a credit card to complete the transactions, and that leaves O’Brien fuming.

She told WFSB she found it unbelievable Apple stores were handing out phones to customers with nothing more than an AT&T customer’s phone number, and she’s unhappy Apple isn’t being forthcoming.

“So I have no idea what other information has been sold or bought or anything,” O’Brien said. She is filing a complaint with Connecticut’s attorney general.

An Apple spokesperson tells us nobody is supposed to be able to walk out of an Apple store with a new phone without a complete wireless account number, the last four digits of the account holder’s Social Security number, photo ID, and final approval from a wireless carrier. Apple claims the purchase met all four criteria, something O’Brien disputes.

http://www.phillipdampier.com/video/WFSB Hartford Hacker charged 6 iPhones to woman ATT account 3-11-15.mp4

WFSB in Hartford reports AT&T customer Meg O’Brien was victimized by fraudulent purchases at an Apple retail store Apple is refusing to name. (2:39)

The Fountain of Life Ministries in Elizabeth City, N.C., has been victimized at least twice by a crook using the church’s name to get at least 17 iPhone 6 smartphones for himself, leaving the church with the bill from AT&T.

special reportChurch employees first learned they were targets when the thief tried to acquire the phones from Verizon Wireless, which apparently learned its lesson from earlier fraud cases and rejected the purchase.

AT&T was more receptive, authorizing the purchase of more than a dozen phones bought on different days.

“I’m just amazed somebody would do that,” Pastor Preston Pitchford told WAVY-TV.

Church employee Christy Wells was even more stunned when the bill arrived.

“When I saw it was from AT&T, I was like, I know this has got to be him. He probably succeeded,” Wells told WAVY. “I see a charge to Fountain of Life for $10,000, and I knew that wasn’t for us. Who would even think to do something like this?”

The church doesn’t use iPhones and doesn’t have an account with AT&T.

http://www.phillipdampier.com/video/WAVY Norfolk Church billed 10K for fraudulent iPhone purchases 3-3-15.flv

The Fountain of Life Ministries in Elizabeth City, N.C. was victimized twice by iPhone 6 fraud. Verizon Wireless rejected the fraudster’s first attempt, but AT&T accepted his second… for 17 iPhones. From WAVY-TV in Portsmouth, Va. (2:12)

Verizon: Our Legacy Landline Service Areas are Not a Part of Our Future Growth Strategy; Verizon Wireless Is

Verizon's FiOS expansion is still dead.

Verizon’s FiOS expansion is still dead.

Verizon Communications does not see its remaining landline customers as part of the company’s future growth and customers should not be surprised if Verizon sells more of its legacy network to other telephone companies including Frontier, Windstream, and CenturyLink.

Speaking at the Morgan Stanley Technology, Media and Telecom Conference 2015 on March 2, Verizon chief financial officer Fran Shammo made it clear to investors Verizon will dump “non-core” assets that do not align with the company’s future long-term growth strategy, even in areas where FiOS predominates.

Shammo told investors Verizon’s growth strategy is predicated on Verizon Wireless, which will continue to get most of the company’s attention and future investment.

“It’s all around the wireless network and I’ve consistently said before, you should anticipate that wireless CapEx continues to trend up while wireline continues to trend down,” Shammo said.

The bulk of Verizon’s investments in its wired network are being made in areas that are already designated as FiOS fiber to the home service areas. Shammo explained that the company is required to invest in FiOS expansion to comply with agreements signed in cities like New York and Philadelphia to make the service widely available in those communities. Beyond those commitments, Shammo signaled the company isn’t planning any significant new spending to upgrade the rest of its legacy copper network.

“We continue to invest in those things that we believe are the future growth of the company,” Shammo said, and anything involving its wired networks outside of Verizon’s core FiOS service area in the northeast and Mid-Atlantic states probably doesn’t qualify.

Verizon-logoWhat will happen in Verizon service areas that are not considered priorities?

“For the right price and right terms, if there’s an asset we don’t believe is strategic to Verizon and can return shareholder value, we’ll dispose of that asset,” Shammo said.

An example of that strategy was Verizon’s sudden announcement in February it would sell its wireline assets in Florida, California, and Texas to Frontier Communications for $10.54 billion. Although a significant part of those service areas are served by FiOS after Verizon invested more than $7 billion on upgrades, Verizon still plans to abandon customers and walk away from that investment because it is not part of Verizon’s future growth strategy.

“If you look at Florida, Texas, and California, these are three island properties,” Shammo told investors. “FiOS is a very small footprint of those properties compared to the copper [except in] Florida because it was just Tampa. But you look at that and you say strategically there’s really not much we can do with those properties because they are islands.”

Verizon will spend the proceeds from its latest landline sale on the wireless spectrum it just acquired and will pay down some of the debt incurred after buying out Vodafone’s former ownership stake in Verizon Wireless. The company has also undertaken a massive share repurchase program, planning to buy back 100 million shares by 2017 to help its shareholders. To ease investor concerns about some of Verizon’s latest strategic moves, it also announced plans to buy back an extra $5 billion worth of shares in the second quarter of this year.

A close review of the latest Verizon sale to Frontier shows the extent Verizon believes in its wireless business at the cost of its legacy copper and FiOS networks. That comes as no surprise to Verizon observers who note its current CEO used to run Verizon Wireless.

Shammo, as featured on a recent cover of CFO Studio magazine.

Shammo, as featured on a recent cover of CFO Studio magazine.

“It’s been clear for years that Verizon has wanted out of the copper business,” said Doug Dawson from CCG Consulting. “They first sold off large portions of New England to Fairpoint. Then in 2010 they sold a huge swath of lines in fourteen states to Frontier including the whole state of West Virginia. And now comes this sale. It’s starting to look like Verizon doesn’t want to be in the landline business at all, perhaps not even in the fiber business.”

Verizon’s latest sale involves “higher margin properties than the rest of our wireline business,” Shammo said, in part because large parts of the urban service areas involved were previously upgraded to FiOS.

“So if you look at Dallas, we were over 50% penetrated both in TV and broadband,” said Shammo. “So, it was a very highly penetrated market that was delivering a lot of cash flow and delivering a lot of earnings. So by just divesting of the three properties, if you just did it on an apples-to-apples basis, there would be dilution.

Giving up that amount of cash flow — needed to win back the $7 billion in FiOS upgrade investments Verizon made in the three states — would normally concern investors worried about the “stranded costs” left over from investments that were never fully repaid. But Verizon has a plan for that: an “Involuntary Separation Plan” (ISP) for more than 2,000 Verizon employees, a polite way to describe job-cutting layoffs.

“We have a year to plan for this and the plan is similar to what we did with the last time we rolled properties out from Frontier,” Shammo said. “We will plan to offset the stranded cost and those plans are already being worked. You saw a little bit of that in the fourth quarter where we gave some ISPs to the represented employee base and we had 2,100 people come off payroll.”

Verizon’s growing preoccupation with Verizon Wireless leaves some analysts questioning the company’s wisdom giving up high-profit FiOS broadband in favor of wireless at a time when competition among wireless companies is finally emerging.

“Verizon reports an overall 41% market penetration for its data product on FiOS networks,” said Dawson. “Data has such a high profit margin that it’s hard to think that FiOS is not extremely profitable for them. The trend has been for the amount of data used by households to double every three years, and one doesn’t have to project that trend forward very far to see that future bandwidth needs are only going to be met by fiber or by significantly upgraded cable networks.”

Considering the wireless market is maturing and most everyone who wants a cell phone already has one, there are questions about where Verizon sees future growth in a business where it is getting harder to attract new customers.

“Verizon was a market leader getting into the fiber business. FiOS was a bold move at the time,” Dawson reflects. “It’s another bold move to essentially walk away from the fiber business and concentrate on wireless. They obviously think that wireless has a better future than wireline. But since they are already at the top of pile in cellular one has to wonder where they see future growth?”

Verizon Wireless Admits Spectrum Isn’t The Holy Grail; There Is No Wireless Spectrum Shortage

A Verizon executive told investors there is no wireless spectrum shortage in the United States and Verizon has historically purchased and warehoused spectrum it had no intention of using immediately.

Fran Shammo, chief financial officer of Verizon Communications, drew attention to Verizon’s controversial spectrum acquisition policy as part of a conversation with investors about the recent FCC auction that sold 65 megahertz of wireless frequencies for an unprecedented $44.9 billion, far and away the highest ever seen in a spectrum auction.

“In every purchase of spectrum up to this auction, the scale was that it was more efficient to buy spectrum than it was to build capacity because the scale was spectrum was cheaper to build on capacity,” Shammo said.

preauction

Before the auction, there were significant differences in Verizon Wireless’ network capacity in different cities. In New York City, Verizon controls 127MHz. In Los Angeles and San Francisco it manages with 107MHz, but only has 97MHz to work with in Philadelphia, San Diego and Chicago.

Verizon Wireless has always held spectrum it acquired at auction but never put into widespread use on its network. But bidding during the FCC’s most recent Auction 97 made bidding and warehousing unused frequencies an expensive proposition, more expensive than beefing up Verizon’s existing network with additional cell towers, microcells, and other technology to make the most use of existing spectrum assets.

“This auction flipped [our acquisition] equation in certain markets,” Shammo said in reference to Verizon’s bidding strategy. “And so we became much more diligent on what markets we strategically wanted and [which] we were willing to let go because when you looked at it, if I was to get what I wanted initially when I went in, I would have spent an extra $6 billion when I could create the same capacity with $1.5 billion by building it.”

In the most recent auction, Verizon Wireless considered spectrum acquisitions crucial in California, where it added frequencies in Los Angeles, San Diego and San Francisco. But Verizon gave up bidding on spectrum for densely populated New York and Boston where the asking price grew too high. That forces Verizon Wireless to increase the efficiency of its existing network in those cities. It will do so by deploying more cell towers to divide the traffic load, as well as adding microcells and other small-area solutions in high traffic urban areas.

Despite not getting everything it wanted, Verizon took the auction results in stride, claiming its network was fully capable of handling growing traffic loads even in areas where it failed to win new spectrum.

“People think that spectrum is the Holy Grail and if you don’t have enough spectrum, you can’t have the capacity,” Shammo said. “But actually that’s not true now because technology has changed so much. If you look at small cell technology, diversified antenna systems, and when you think [about] Chicago, if you walk down the street, you see small cells on lamp posts. So, the municipalities are starting to open up to that small cell technology.”

postauction

AT&T paid $18.2 billion for nearly 250 licenses, compared with $10.4 billion Verizon will spend on 181 licenses. The presence of Dish Networks in the bidding clearly irritated AT&T and Verizon, primarily because the satellite dish provider incorporated two “designated entities” — SNR Wireless LicenseCo and Northstar Wireless — as bidding partners, winning up to 25% off their bids as part of a “small business discount.” The two DEs won over $13 billion in licenses with $3 billion in savings.

AT&T accused Dish of circumventing auction activity rules and distorting the bidding.

“As a result, Dish the corporate entity won no licenses,” said Joan Marsh, AT&T’s vice president of federal regulatory matters. “The Dish DEs, who each enjoyed a 25% discount, won substantial allocations.”

Marsh complained Dish already controls around 81MHz of spectrum that remains unused for wireless telecom services.

Dish also made life difficult for large carriers who have learned to predict the likely bidding strategies of their competitors based on experience. Many were surprised Dish managed to both bid up prices and win a substantial percentage of spectrum, all for a wireless business it has yet to build.

T-Mobile was not happy either. CEO John Legere called the auction “a disaster for American wireless consumers.” T-Mobile suffered considerably in the auction, outspent by Dish & Friends 132 times for important wireless licenses.

“Three companies alone spent an insane $42 billion between them, grabbing a ridiculous 94 percent of the spectrum sold at this auction,” Legere wrote, referring to AT&T, Dish Network and Verizon Wireless. “This whole thing should scare the hell out of you and every other wireless consumer in the U.S., because there is another important auction next year, and the results have to be different if wireless competition is going to survive.”

With the auction over, Verizon Wireless will continue to shift its spectrum usage around to accommodate network changes. Verizon will continue to emphasize enlarging 4G LTE services while gradually reducing the percentage of its network used for other purposes. Verizon expects to shut off its CDMA voice network in the early 2020s and is reducing the amount of spectrum dedicated to supporting its legacy 3G network.

Verizon Preparing to Sell $15 Billion in Cell Tower/Wired Assets – Tex., Calif., and Fla., Landlines Likely for Sale

Phillip Dampier February 3, 2015 Consumer News, Verizon 2 Comments
Verizon's landline coverage map.

Verizon’s landline coverage map.

Verizon is working on a sale of its cellphone towers and a portion of its landline assets in a series of deals that could fetch the company more than $15 billion, according to a breaking report in the Wall Street Journal.

The company is looking to raise cash to pay down debt incurred when it bought out Vodafone’s 45% share of its wireless unit and to cover $10.4 billion in wireless licenses the company just won in a government auction last week.

The most likely targets in a landline sale are Verizon territories outside of the northeast.

Verizon has already dumped its landline assets in Hawaii (sold to Hawaiian Telcom), northern New England (sold to FairPoint Communications), West Virginia and many smaller city and suburban territories acquired from GTE (all sold to Frontier).

In its 2010 sale to Frontier, Verizon retained assets in the Tampa-St. Petersburg area, central Texas and Southern California regions. But now all three states are prime targets for a sale. Likely buyers include Frontier Communications, which already has a major presence in Florida including a national call center, and CenturyLink, which acquired Qwest and has a large service area in the southwest and western United States. Frontier remains the most likely buyer, having aggressively expanded its landline network in legacy AT&T (Connecticut) and Verizon service areas.

Verizon CEO Lowell McAdam has shown little interest in maintaining Verizon’s wired assets or growing FiOS and has been willing to sell off major parts of Verizon’s landline network to continue prioritizing Verizon Wireless. McAdam led Verizon Wireless from 2006-2010, before being named CEO of Verizon Communications.

Verizon-logoHe foreshadowed the forthcoming landline sale in January when he told an investor conference he was willing to make significant cuts to Verizon’s wired networks.

“There are certain assets on the wireline side that we think would be better off in somebody else’s hands so we can focus our energy in a little bit more narrow geography,” he said at the time.

Verizon is also expected to follow AT&T’s lead in selling off much of its cell tower portfolio. It will lease access to the towers it sells.

Verizon maintains FiOS networks in Texas, California, and Florida, but that is not expected to deter the company from selling its landline assets. Frontier acquired Verizon FiOS properties in the 2010 sale in both the Pacific Northwest and Indiana. Those services operate under the Frontier FiOS banner today.

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