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Got a Call from 1-800-922-0204? Careful. The Verizon Wireless “Refund” Scam is Back

Phillip Dampier October 5, 2015 Consumer News, Verizon, Wireless Broadband No Comments

scamScammers are once again spoofing Verizon Wireless’ 1-800-922-0204 customer service number shown on a customer’s Caller ID in calls offering “refunds” ranging from $30-60 in return for personal information needed to “process a refund check or service credit.”

Verizon Wireless customers (including myself) have started receiving recent unsolicited calls from Verizon Wireless claiming an earlier billing error resulted in an overcharge to their wireless account. The amount of the credit varies, but is significant enough to get the attention of unwitting customers. The caller is asked to verify their Verizon Wireless “account password,” which is a critical piece of information not to be shared with unsolicited callers. Once exposed, anyone can call Verizon Wireless and make changes to your account.

Variations on this scam have been around since 2014. Last fall, callers were instructed to “apply for a refund” at phony websites run by the crooks, almost always detectable because the scammers registered web addresses close to Verizon’s legitimate address, but with two extra numbers attached. (eg. http://28verizon.com/, 27verizon.com, 48verizon.com, etc.) Most of these sites were shut down by early 2015.

Consumers usually believe the calls are genuine because their Caller ID reports the calling number originates with Verizon Wireless customer service. But such caller ID information can now be easily manipulated or faked, making it harder than ever to truly know who is calling.

610px-Verizon-Wireless-Logo_svgComplicating matters are Verizon’s own marketing calls to customers originating from the same 800 number, which are legitimate. In an effort to combat the scammers, customers can call Verizon Wireless back at 1-800-922-0204 and the automated call attendant will confirm any recent legitimate customer service calls (often for an “account review” or to tell you about a past due balance) made to your number recently.

The best way to avoid this fraud is to not answer unsolicited calls from unfamiliar numbers and refuse to share any personal information with an incoming caller you don’t know. That includes giving out your full name, address, any part of an account password or Social Security number, credit card number, bank account information, etc.

Any legitimate overpayment or overcharge would be automatically credited back by Verizon on your next bill or mailed to the last address on file if you are a former customer.

“I normally never answer a call with a Caller ID number I don’t recognize, but I was fooled because the number reported was Verizon Wireless customer service’s own number,” said Dylan, a Stop the Cap! reader who now admits he gave away too much information. “I foolishly gave them my account password, address, and phone numbers and only got suspicious when they asked for my Social Security number. That is when I knew and I hung up and called Verizon and changed my account password before the scammers did.”

“I learned my lesson.”

Sprint Raising the Price of Unlimited Data to $70; Existing Customers Will Still Pay $60

SprintSprint customers thinking about subscribing to an unlimited data plan may want to decide before Oct. 16, when Sprint raises the price of its cap-free plan for new customers by $10 to $70 a month.

Sprint and T-Mobile are the last remaining holdouts still offering unlimited data, and T-Mobile’s costs $80 a month. AT&T and Verizon Wireless still have a dwindling number of customers holding onto unlimited data plans discontinued a few years ago.

Current Sprint customers will be grandfathered in at their current rate, and Sprint has dropped any mention of de-prioritizing unlimited users’ data for the benefit of those on capped plans.

Sprint CEO Marcelo Claure previously warned in July he was no fan of unlimited data and would be discouraging Sprint customers from keeping their cap-free plan. A $10 price increase for new customers won’t likely convince existing customers to give up unlimited data, but further price increases in the future might.

Sprint’s problem remains its wireless network, which has often performed poorly in consumer ratings. As video streaming becomes more popular, Sprint’s network may have some of the most trouble trying to keep up, slowing speeds for everyone. Alienating a loyal customer base that has put up with Sprint’s endless promises of a better network on the way may prove unwise if those customers continue defecting to T-Mobile.

Interference Alert: Wireless Carrier Coalition Advocates Barging Into Your Free Wi-Fi Space

Critics question the wireless industry's claim LTE-U and Wi-Fi can co-exist peacefully.

Critics question the wireless industry’s claim LTE-U and Wi-Fi can co-exist peacefully. (Image: EVOLVE)

Consumer groups and cable operators are warning the Federal Communications Commission a plan by the nation’s largest wireless carriers to introduce premium Wi-Fi services for their mobile customers may create serious interference problems for existing Wi-Fi users.

AT&T, Verizon, and T-Mobile are all members of EVOLVE, a group advocating for LTE-U and LAA, technologies that will depend largely on the unlicensed Wi-Fi bands to deliver wireless data to their mobile customers.

Cable operators fear the proposal will give mobile providers an unfair advantage, introducing more traffic into the already crowded Wi-Fi bands while mobile operators reserve the right to use a licensed control channel to shift their customers’ traffic back and forth between unlicensed and licensed spectrum at will. Cable industry critics of the plan claim allowing mobile operators to dump customer traffic into the Wi-Fi bands is likely to worsen interference, harming the cable operators’ investment in a growing network of Wi-Fi hotspots and in-home Wi-Fi.

Consumer groups agree with the cable industry.

The Open Technology Institute at New America, Public Knowledge, Free Press, and Common Cause have filed a joint statement with the FCC warning the agency “mobile carriers will have both the ability and strong incentives to use LTE-U and LAA to engage in anti-competitive behavior harmful to consumers,” all while making a tidy profit charging customers for the use of a service comparable to Wi-Fi, now a free alternative to the carriers’ 3G and 4G data networks.

The groups argue Wi-Fi standards were developed with unlicensed users in mind, able to co-exist peacefully with other similar Wi-Fi signals. The proposed LTE-U technology from wireless carriers is far less sensitive to neighboring signals.

“LTE-U/LAA is designed to be centrally controlled by a network anchored in a separate, exclusively licensed frequency band,” the consumer groups wrote. “3GPP, the mobile industry standards body, may ultimately design LAA in a manner that shares fairly with Wi-Fi and other unlicensed technologies; yet several studies filed by commenters demonstrate that the version of LTE-U that U.S. carriers plan to deploy by next year coexists poorly with Wi-Fi, degrading both throughput and latency (delay).”

LTEUWiFiCritics contend the wireless industry’s proposed service is not as likely to use “Listen Before Talk” effectively, a standard that checks for existing traffic before powering up on an unlicensed frequency. Consumer groups fear mobile carriers will have both the ability and a strong incentive to use LTE-U and LAA to charge consumers for the use of unlicensed spectrum and give themselves an unfair advantage by escaping the interference its own technology can cause other users.

“Carriers also have powerful incentives to use LTE-U to deter mobile market entry by ‘Wi-Fi First’ providers, such as wireline ISPs,” argue the consumer groups, also referring to independent providers like Republic Wireless that depend primarily on Wi-Fi for smartphone connectivity. “Carriers deploying LTE-U will have the apparent option to adjust their access points to introduce just enough latency to frustrate consumer use of real-time applications, such as video calling.”

Another incentive is money. For several years, wireless carriers have encouraged customers to offload their mobile data traffic to Wi-Fi. But since Wi-Fi traffic does not count against the customer’s usage allowance, it also reduces revenue opportunities. LTE-U is a variant of LTE, and carriers traditionally do count that traffic against a customer’s usage allowance. For the first time, mobile customers will accrue usage charges based on their use of unlicensed frequencies. For some, they may have no other choice.

Ellen Satterwhite, a spokesperson for WifiForward, a coalition of companies advocating for more unlicensed spectrum for Wi-Fi, said LTE signals never play well with traditional Wi-Fi.

“When LTE and Wi-Fi signals collide, LTE wins,” Satterwhite said.

“The wireless carriers have completely changed their tune about Wi-Fi—because they have to,” said David Callisch, vice president of corporate marketing for Ruckus Wireless, a Sunnyvale, Calif.-based maker of Wi-Fi hardware, whose customers include Verizon and AT&T. “Wi-Fi for them is like a train going down the track,” Callisch told Bloomberg BNA in an interview. “You could get hit by it or you could jump on the train. They’re jumping on the train.”

“Carriers have historically hated Wi-Fi, because they can’t control it,” Callisch added. “They’ve always liked the licensed band, because they can buy it and they can control it and they can deliver a quality of service to customers over it. With Wi-Fi, you can’t do that.”

But with LTE-U they have the control they crave, able to use network management technology that prioritizes their customers over other conventional Wi-Fi users. Even better, they can charge customers for using it.

Both cable operators and consumer groups want engineers, not business executives, to carefully develop standards and rules that guarantee Wi-Fi users can co-exist with other users of unlicensed frequencies before the technology is switched on.

Frontier Plans to Finance Acquisition of Verizon Lines With $6.6 Billion in Junk Bonds

frontier-fast-buffalo-large-2To complete an acquisition of landline assets in California, Florida, and Texas from Verizon Communications, Frontier Communications is hoping to raise $6.6 billion in “speculative-grade debt” to finance the deal.

Frontier will begin selling the securities better known as “junk bonds” starting today with a target date of Sept. 15 or 16 to complete the sale, according to Bloomberg News.

Wall Street raised its eyebrows at the amount of the transaction — the second largest junk-rated deal since Valeant Pharmaceuticals sold almost $10 billion in junk bonds in March.

Frontier plans to offer a high yield to attract investors, some already favoring the company’s stock for its reliable shareholder dividend payout. Frontier has been a popular choice for investors relying on dividend income — money Frontier distributes to shareholders — that critics contend limit Frontier’s ability to improve its network of largely rural landlines.

analysisCalifornian consumers are among those most concerned about a Frontier takeover of landline and FiOS service. Verizon ventured far beyond its original service area extending from Maine to Virginia after it acquired independent telephone networks operated by General Telephone (GTE) and Continental Telephone (Contel) in 2000. In 2015, the company wants to return to its core landline service area in the northeast.

junk1David Lazarus, a consumer reporter for the Los Angeles Times, wonders how ratepayers will benefit from a Frontier takeover.

“Financial analysts are generally upbeat about the deal, but that reflects the projected benefits to the corporate players, not consumers,” Lazarus wrote.

Verizon’s claims the sale will help refocus the company on its “core markets” in the east and Frontier’s suggestion the Verizon acquisition will enhance Frontier’s footprint with “rich fiber-based assets” didn’t seem to excite Lazarus.

“I honestly wonder if corporate leaders know how ridiculous they sound when they spout such gobbledygook,” he added.

Lazarus suspects Verizon is worried the Obama Administration may eventually extend universal service obligations to broadband, which would force phone companies to deliver broadband to any telephone customer that wants the service, regardless of how much it costs to offer it. Universal Service remains an important legacy of wireline landline telephone service. Your landline survives under a regulatory framework not applicable to the wireless business, where both AT&T and Verizon Wireless now make the bulk of their profits.

junk2As AT&T and Verizon ponder ditching high-cost landline customers, so long as there are companies like Frontier willing to buy, the deal works for both. Verizon gets a tax-free transaction that benefits both executives and shareholders. An already debt-laden Frontier satisfies shareholders by growing the business, which usually makes the balance sheet look good each quarter.

Even as Frontier takes on a massive new tranche of debt, in the short-term the more landlines Frontier acquires, the happier shareholders will be. More customers equal more revenue — revenue that can assuage fears of Frontier’s eye-popping debt load. That added revenue often also means a nice dividend payout to shareholders, unless that money has to be diverted to debt payments or network improvements.

Unfortunately, like a Ponzi scheme, Frontier will have to continue acquiring new landline customers from other companies indefinitely to make it all work. If it can’t, or if customers continue to flee Frontier for more capable providers, revenue numbers will worsen, only making the company’s large debt obligations look even more ominous. Some shareholders think Frontier’s days of paying very high dividends are already behind them as the company takes on even more debt. The value of Frontier stock has dropped 35% in the last six months. In the second quarter of 2015, Frontier reported losses of $28 million. Last year at the same time, Frontier reported $38 million in profits.

junk3Those losses have to be reflected somewhere, and customers complain they are paying the highest price. West Virginians are among those that regularly accuse Frontier of chronically under-investing in broadband service in the state. Many rural communities obtaining broadband for the first time initially appreciated Frontier’s efforts, but have since grown critical of the performance of Frontier’s DSL service, which can slow to 1Mbps or less during the evenings because Frontier has oversold its network and not kept up with usage demands.

Frontier’s deal with Verizon allows it to acquire a large state of the art FiOS fiber to the home network Frontier has never been willing to build itself. Keeping an existing fiber network up and running is considerably less expensive than building one from scratch. That explains why Frontier customers in ex-Verizon FiOS areas enjoy relatively good service while legacy customers still connected to copper phone lines that were installed in the 1960s (or earlier) are stuck with uneven and slow-performing DSL that rarely meets the FCC’s minimum definition of broadband — 25Mbps. Where customers have a choice between Frontier DSL and another wired provider, most choose fiber or coaxial-based Internet service. Frontier’s rural service focus protects the company by limiting the effects of that kind of competition.

In the near term, Frontier’s biggest threat could eventually come from wireless 4G LTE broadband from AT&T and Verizon Wireless, if the companies can deliver an affordable service for rural residents without a punishing low usage allowance. That remains a big “if.”

(Illustrations by Chris Serra.)

Wi-Fi Woo-Woo – Quack Science Convinces Boston Family to Sue School Over Wi-Fi/EHS Allergy

emf shield

Space age beekeeping or Total EMF protection? Shielding your head just got easier. Slip this sheer and roomy HeadNet on and it will “provide 99.7% shielding across the frequency range 10MHz – 3GHz and >94% at 5.6GHz,” thanks to its generous use of ‘Silver Supershield’ double Silver-plated nylon, claims its manufacturer. Your price: $80

A Boston area boarding school’s failure to accommodate a 12-year-old student’s allergy to Wi-Fi will force the Fay School to hire attorneys to defend itself in a lawsuit brought under the Americans with Disabilities Act.

All three plaintiffs have been kept anonymous, but their lawsuit clearly identifies what is responsible for their son’s headaches, itchy skin and rashes — the school’s Wi-Fi system.

The Courthouse News Service:

In spring 2013, the Fay School installed an industrial-capacity WiFi network into the school that was accessible in all classrooms. After the new network went live, “G” began coming home with headaches, itchy skin and rashes that would recede in the evening, and vanish over the weekend and during summer vacation when he was not near the school, the lawsuit claims.

When the child returned to school for the 2014 academic year, his symptoms got worse, resulting in him having to regularly leave school early.

The parents found that their child’s condition may have been caused by exposure to increased electromagnetic activity after learning that, right before their child began suffering the symptoms, the school had installed a new, industrial-strength WiFi network.

“Exposure to Wi-Fi emissions at the levels emitted by the type of Wi-Fi to which the children are exposed in Fay classrooms causes, in those persons affected, most notably children, the symptoms of EHS, which include severe headaches, fatigue, stress, sleep disturbances, skin symptoms such as prickling, burning sensations and rashes, muscle aches, nausea, nose bleeds, dizziness and heart palpitations,” the lawsuit states.

The Omega EMF protector comes in Ethernet or Wi-Fi versions. A similar device opened up by an RF engineer was found to contain plastic beads.

The Omega EMF protector comes in Ethernet or Wi-Fi versions. A similar device opened up by an RF engineer was found to contain plastic beads. A reviewer claimed it was also effective at repelling “the lizard people from touching me in the night.”

People claiming to suffer from Electromagnetic Hypersensitivity Syndrome, or EHS, claim wireless signals cause them pain and suffering. Others argue the condition also afflicts those exposed to electric lights, juicers, Keurig coffee makers, garage door openers, washing machines, microwaves, laptops, blenders, air conditioners, cotton candy makers, vacuum cleaners, hair dryers, televisions, dishwashers, and fans. Some believe that mountains are effective blockers of radiation and have relocated to the Catskills or West Virginia to escape decent cell phone coverage and high quality broadband.

While medical authorities consider the symptoms reported by sufferers to be credible and believable, most experts strongly doubt electromagnetic activity is the cause. In the 1980s, high tension, high-capacity power lines were usually implicated by sufferers. But as cell phones became common, cell towers became the new targets. The presence of Wi-Fi, especially in public buildings and the classroom, have fueled the fire under a small army of activists dedicated to getting those services shut down, fearing their health impact on children.

To test the science, a 2009 double-blind study conducted by the National Institutes of Health on intolerance to electronic signals quickly found that when test subjects had no knowledge of whether they were being exposed to electromagnetic activity, all the symptoms of hypersensitivity vanished.

The Boston area family sued after claiming school officials had grown hostile over their requests to “test their student’s classroom.” The family also requested the school’s Wi-Fi network be disabled in all classrooms where their child was present and have wired Ethernet Internet access installed instead.

The World Health Organization’s firm conclusion that there is no link between EHS and Wi-Fi signals was not enough to assuage those worried about wireless. The WHO also declared EHS is not a credible medical diagnosis. Now, this does not mean the symptoms of people who think they have EHS are not real. But with no serious evidence wireless signals are the cause, skeptics suggest another environmental cause is more likely responsible for symptoms.

The two best ways to protect your pets from unnecessary exposure to cell phone signals. 1) Become a Sprint customer. 2) Buy this dog collar for $239.

The two best ways to protect your pets from exposure to robust cell phone signals: 1) Become a Sprint customer. 2) Buy this dog collar for $169.

Prior claims of EHS have often turned out to be exposure to mold and mildew, allergies, perfume exposure, poor air quality, or a yet to be diagnosed unrelated disease or medical condition.

But that has not stopped the creation of a cottage industry of companies marketing “EMF protection” devices to a worried public.

Until recently, an Amazon seller peddled the EarthCalm Omega WiFi Electromagnetic EMF Protection dongle (USB or Ethernet version, so evidently the plaintiff’s request to move the school to Ethernet-based Internet access would subject their child to additional pain and suffering.) A “Healthy Home Package” containing this and a “Home EMF Protection System” is priced to move at another seller for just $405.

A curious RF engineer received a similar wall unit years ago as a gag gift – one he could not resist opening.

“There was nothing more [inside] than a 1-inch long piece of masking tape folded over,” he wrote. “When I peeled apart the masking tape there were seven tiny plastic beads, like you would use on a necklace. That was it! That is their ‘circuit’.”

With the EarthCalm Omega out of stock, there are plenty of alternatives available from hundreds of websites that raise the alarm on the dangers of wireless signals and then make a living selling very expensive “protection” devices of questionable value.

The EMF meter is claimed to be useful for detecting EMF and for ghost hunting.

The EMF meter is claimed to be useful for detecting EMF and for ghost hunting.

Among them:

  • The Nova Resonator S-Series (in three fashion colors) — a metallic tube hung from a chain placed around the neck ($239)
  • The Quantum Cell: A metallic decal placed on the back of your cell phone, degrading or eliminating any cell phone reception ($129)
  • Aulterra the EMF Neutralizer: No it’s not a person, it’s a cheap cell phone signal degrader for the middle class ($29)
  • 4 Paws Pet EMF Protector: You wouldn’t let your dog be subjected to harmful Wi-Fi, would you? This dog collar is the “answer.” ($169)

The marketplace has grown so bloated with EMF protection sellers, they occasionally turn on one another. The manufacturer of the EMF Protection SmartShield360 Portable claims it is state-of-the-art, unlike those pushing “passive (not powered) pendants or stickers which claim to protect you.”

“SmartShield technology is light years beyond basic Schumann Resonance devices,” claims the manufacturer. It’s also light years away from the price of your basic Aulterra kit. SmartShield 360 will set you back $249 (plus $4.99 shipping).

In all seriousness, James “the Amazing” Randi believes such stories of wireless woo-woo can have a real cost.

“We do scientific research for a reason – to find out if things like EHS are real entities,” Randi writes. “What’s the use of such research if the results are going to be ignored.”

“Further, if people who believe they have EHS do not, they likely have some other condition – another condition which will go undiagnosed and untreated because they falsely believe EHS is the cause,” Randi adds.

Randi is also concerned the media treats these stories like catnip, sensationalizing the coverage without any sense of skepticism or fact checking.

“Reporters should have some sense of the topic they are covering, and whether or not they have sufficient background knowledge to know they are telling the true story,” he writes. “If you do a Google search for ‘electromagnetic hypersensitivity’ [one will easily find] Wikipedia, which includes a decent discussion of the lack of scientific legitimacy. [Another] is for a published review showing that EHS sufferers cannot detect EMF. [A] third is to Skeptoid’s debunking of EHS, and [a] fourth is to the WHO review.”

Microsoft’s Windows 10 Updates Cost Some Users Hundreds of Dollars in Internet Overlimit Fees

badbillAbbes Nacef was not very happy when he opened his web browser a few days ago to see a message inserted at the top of his screen.

“Your Internet service has reached the maximum limit of allowable overage charges. If you wish to continue service, please contact our business office to discuss your account.”

Nacef, who lives in Monastir, a Tunisian city best known for its tourism, was surprised because it was the first sign his Internet account had gone over the limit.

“While you can get uncapped DSL in Tunisia, it is not very good service and in my area it is not offered,” Nacef told Stop the Cap!. “Most in our neighborhood rely on a wireless ISP service which is less costly than 3G or 4G mobile service, but is capped and charges roughly $25 for each extra gigabyte allotment.”

Nacef’s call to his provider was not pleasant. He had already accumulated almost $180 in charges for the month of August, most in overlimit fees. The culprit was quickly identified — Microsoft Windows 10, which took several attempts to reach Nacef’s computer over a challenging Internet connection. But Nacef also learned his computer was repeatedly requesting updates from Microsoft, including three software patches that would not complete and were sent over and over for almost two weeks.

“It was the fifth call my ISP had received about this problem, and they were very annoyed also because Microsoft Windows 10 assumes you will use their Edge browser which defeats the early warning messages from my ISP that usage limits are approaching,” Nacef said. “When I switched back to my old browser the bad news was there, but it was too late.”

Windows-10His ISP has agreed to cut the charges in half and has warned all of its customers if they want Windows 10, the ISP will offer them a copy on a returnable USB memory device for free.

Nacef thinks the huge multiple download attempts to receive Windows 10 itself was responsible for most of the extra usage, but he is wary about the frequent software updates and the fact they are shared with other users by default.

That is what may have tripped up Rob DuGrenier who paid an exorbitant $150 this month for 1.5Mbps Internet service just to get a 75GB usage allowance for his immediate family in far northern Québec. The alternative was an overlimit fee of $20 for each 5GB allotment of usage over the usual 30GB allowance granted to “Power” users.

“Internet is not an option for our family for medical reasons, but this hurts,” DuGrenier writes. “It is definitely Windows 10 and there is something wrong with it because our ISP reports we are sending a lot more data than we are receiving, and there are no viruses or malware on the computers.”

Internet access is northern Québec is slow and costly.

Internet access is northern Québec is slow and costly.

His ISP now suspects Microsoft is using his connection to distribute software updates to a number of other users across northern Canada. When DuGrenier’s family disabled the option that opted them in to distributing Microsoft updates to other customers, upstream traffic dropped 98%.

“Were we sending Windows 10 itself all over northern Quebec and Nunavut? We just don’t know and Microsoft has not responded,” DuGrenier reports. “They have billions, I do not. They should be paying my Internet bill this month.”

The worst of the reported problems of bill shock are occurring in remote areas where Internet service can be a mixture of wired and wireless connections that are often slow and usually usage-limited. Windows 10 was designed to reduce bandwidth demand on wireless connections, assuming they would be metered. But how Microsoft detects which networks are wireless and metered and which may only partly be so is apparently a work in progress.

This morning, the Sydney Morning Herald reports at least one customer on a Pacific island was slammed with a catastrophically high Internet bill. Maureen Hilyard in the Cook Islands owes her ISP $390 this month, all because of automatic updates from Microsoft for Windows 10.

“In this context, where Internet access is both painfully slow and seriously expensive, these forced updates are almost literally forcing people off the Internet and are resulting in massive excess data charges,” EFA executive officer Jon Lawrence told the newspaper.

cook islands

The Cook Islands

Hilyard is a customer of Bluesky, primarily a satellite Internet Service Provider that dominates the Cook Islands, which have no other options for Internet access. A basic account costs $31.50 a month, but that provides just 3.5GB of data for the entire month. Automatic overlimit charges of $0.03 per megabyte accrue after the allowance is used up.

The most likely victims of Windows-induced bill shock subscribe to usage-limited wireless or satellite Internet services. While many providers throttle the speeds of customers who reach the usage limit, others charge penalty rates. Microsoft has no way to know which is true. Instead, the company claims it looks for evidence of a wireless connection before performing updates and when it finds one, it assumes it to be metered. But wired connections stay firmly in the unmetered category, whether they are usage-capped or not. Customers are invited to choose by digging through confusing settings menus.

Even more problematic is the built-in peer-to-peer technology that gives Microsoft’s servers a break and uses your Internet connection to share the latest Windows software updates with other Windows users across town and beyond. Microsoft has offered no provision to track this usage, but users can opt out with this advice from the Sydney Morning Herald:

Users can tweak their Windows 10 system settings by enabling a “metered connection” by searching for “Change Wi-Fi settings” in the start menu, clicking on “Advanced Options” and enabling “Metered connection.” This lets Windows 10 know the Wi-Fi connection you’re on is capped, so instead of forcing a software update onto your PC or tablet, it will notify you first. You can then choose to delay the upgrade until you are on an uncapped connection, or until you’ve rolled over into a fresh month of data.

This workaround only applies to Wi-Fi connections, however, not Ethernet connections.

A second workaround actually comes in an update which Microsoft itself released. It’s a bit more fiddly though, as it involves manually uninstalling driver updates and then downloading a special troubleshooter app to prevent them from installing again automatically. The full instructions are available online.

AT&T Social Engineers Its Data Plans to Push You Towards a Family Mobile Share Plan

att changesAT&T is obviously a supporter of bringing its wireless customers closer together… in family plans, that is.

The wireless carrier has adjusted its wireless data plans once again, this time in response to recent changes at Verizon and to better compete against T-Mobile — the carriers AT&T’s plans now most closely resemble.

Pricing wireless data has become a marketing art. Push people into too-small data plans and they will get stung with bill shock. Give them ample data at a high price and customers feel justified trying to use every last bit of it to get their money’s worth. So what is AT&T up to?

Light User/Budget Customers Squeezed

att_logoIf you keep your phone turned off except during special occasions, road trips, and landline service outages, AT&T has a plan for you. Actually, Verizon thought up most of these plans first — AT&T is now matching them as a consequence of the “competitive” market.

AT&T’s $20 a month entry-level data plan offers a paltry 300MB of data, an amount so low it is likely to be consumed quickly just updating apps, reading web pages, and checking email. Although intended for light users, it is likely to expose customers to a nasty overlimit fee identical to the cost of the 300MB plan itself ($20 per 300MB). With embedded video advertising, bloated web pages, and growing-size apps that require regular upgrades, this kind of allowance is no longer tenable.

AT&T’s old 1GB and 3GB plans are also gone. Heads you may lose, tails AT&T usually wins. Customers on 1GB plans will now be herded into a 2GB plan that delivers twice the amount of data, for $5 more per month ($60 a year). That is a good value as far as wireless pricing is concerned, but only if you need twice the data. Customers with 3GB plans lose one-third of their allowance but get a $10 price break… unless they go over their limit and expose themselves to AT&T’s dastardly $15/GB overlimit fee. Then the savings evaporate.

The 2GB usage plan seems designed to keep you worried. Will you come perilously close to the overlimit fee again this month after watching those videos on the train? What about the 15 app updates that chewed through 300MB last week? With the average 4G iPhone customer in the United States using 1.8GB of mobile data each month during the summer of 2014, 2GB+ average usage is likely this year. Avoiding the overlimit fee will involve a costly leap into a more generous 5GB plan at a higher cost.

The New Normal: The 5GB Individual Plan/15GB Family Plan

family share

It won’t be hard for AT&T to sell most customers on either a 5GB data plan if they have an individual account or a 15GB shared data plan for families.

The 5GB plan is $20 less than the 6GB plan it replaces. It’s presumably AT&T’s idea of a “sweet spot” for customers with a single line choosing between a $30 2GB plan that might not include enough data or a much more expensive 15GB plan — the next step up AT&T’s data plan range.

A close look at AT&T’s price chart shows the plan options and prices are designed to encourage individual line customers to migrate into a family plan. Here’s how AT&T does it:

Two AT&T customers with individual plans now pay $75 each for unlimited talk and text and 5GB of data. That adds up to $150 a month. But watch what happens when those customers take their vows as AT&T family plan customers. First, they each get a $10 break on the Plan Access charge ($15/mo each instead of $25). Second, there is more justification to spend $100 on a data plan that offers a more generous 15GB of data. Let’s look at the math:

Monthly Plans (now) Monthly Plans (old) Data (now) Data (old) Plan Access charge
$20 $20 300MB 300MB $25
$30 $25/$40 2GB 1GB/3GB $25
$50 $70 5GB 6GB $25
$100 $100 15GB 10GB $15
$140 $150 20GB 20GB $15

Individual Plan (2 Lines)

2 x $25 Plan Access charge
2 x $50 5GB data plan


Family Plan with 2 Lines

2 x $15 Plan Access charge
1 x $100 15GB data plan

$130/month — a $20 savings

Family plan customers pay $20 less and get an extra 5GB of mobile data. Customers choosing a data plan of 15GB or more also receive free unlimited calling and texting in Canada and Mexico.

Customers can be forgiven if they fall into the value trap – saving yourself into poverty. While AT&T’s recent price changes offer significant savings for certain customers, it is instructive to remember not so long ago AT&T charged $30 a month for unlimited mobile data, making the prospect of spending $100 for 15GB sanity-questionable. But that was then and this is now.

AT&T expects it will increase the amount of money it collects from each customer with the advent of these new plans, with the hope customers won’t remember back to the days where data usage was not monetized like a commodity.

Sprint Chairman Calls U.S. Wireless Networks “Very, Very Bad”

Masayoshi Son

Masayoshi Son

Sprint, for perhaps the 5th time in three years, is promising a major network turnaround in the near future that will boost their network’s performance and potentially restore the wireless provider to third place in the U.S. wireless market.

Masayoshi Son, who serves as both the CEO of Japanese carrier SoftBank and chairman of Sprint proved defensive about Sprint’s performance, which recently dropped to America’s fourth largest carrier after trading places with T-Mobile, despite posting improved financial results for the quarter.

Once again, Son told investors the state of America’s wireless network coverage was downright lousy.

“When I come to the [United] States, this network is not something you should be proud of,” Son said on a Sprint conference call with analysts. “It’s very, very bad.”

John Legere, the outspoken CEO of T-Mobile, took to Twitter to berate his smaller competitor.

“Does that make Sprint’s network ‘VERY, very, very bad’ or just completely terrible,” Legere wrote. “It’s easy to boast about your network in Japan, @masason. That’s 146k square miles, or basically most of California. #notthathard ;),” he added.

sprint all inSon has been relatively quiet since failing to inspire regulators to allow him to merge Sprint and T-Mobile into a single company to help both compete more effectively against giants AT&T and Verizon Wireless. After promising to invest vast sums to improve Sprint’s relatively poor performing network and coverage area, Son seemed to disappear and Sprint started losing more customers than it could add. Some have expressed frustration about Sprint’s seemingly endless promises a network turnaround was just around the corner, but never seemed to actually materialize. Many have since left for T-Mobile, which added 2.1 million new customers this year.

Although this quarter may signal Sprint is turning things around by adding 675,000 net new customers, analysts question whether Sprint’s drop to fourth place and the amount of spending that will be required to improve its wireless network could lead Son to ditch his shares in Sprint two years after acquiring an interest in the carrier. Son himself admitted he lost confidence in Sprint after the idea of a merger with T-Mobile flopped. But now he claims he is back, personally overseeing plans for Sprint’s next generation network with U.S. based engineers every night between 10pm-2am Japan time.

Customers seem unconvinced, peppering comment sections with reactions ranging from surprise Son was willing to criticize Sprint’s network (a criticism many agreed with), to exasperation that Sprint has promised better service for years and has yet to provide it.

“You know your carrier’s service sucks when even the CEO says it sucks,” commented one reader.

The Philippines: Free Market Broadband Paradise or Deregulated Duopolistic Hellhole?

special reportFans of the “hands-off” approach to broadband oversight finally have a country where they can see a deregulated free marketplace in action, where consumers theoretically pick the winners and losers and where demand governs the kinds of services consumers and businesses can get from their providers.

That country is the Philippines, which has taken the libertarian free market approach to Internet access in a dramatic leap away from the authoritarian Marcos era of the 1980s.

The Deregulation “Miracle”

Until 1995, the Philippines Long Distance Telephone Company (PLDT) maintained a 60-year plus government-sanctioned monopoly on telecommunications services. Its performance was less than compelling. Establishing landline service took up to 10 years on a lengthy waiting list. Getting a phone line was the first problem, making sure it worked consistently was another. Just over 10 years after the United States formally broke up AT&T and the Bell System, the government in Manila approved RA 7925 – the Public Telecommunications Policy Act of 1995, breaking PLDT’s monopoly and establishing a level playing ground for each of 11 regions across the country and its many islands in which private companies could compete with PLDT for customers.

philippinesTo attract investment and competition, the government declared all value-added services like Internet access deregulated and guaranteed the complete privatization of all government telecom facilities no later than 1998. It also initially limited the number of companies that could compete against PLDT in each region to two new entrants. The government felt that would be necessary to attract competitors that knew they would have to quickly invest millions, if not billions, to build telecom infrastructure in the Philippines. It would be hard to make a case for investment in a region where a half-dozen companies all engaged in a price war fighting for customers while stringing new telephone lines and building cell towers.

To prevent cherry-picking only the wealthiest areas of the country, the government declared its desire for a privately funded nationwide telecom network and used the 11 regions, combining urban and rural areas in each, to get it. Competitors were required to support at least 300,000 landlines and 400,000 cellular lines in each region. That assured new networks could not simply be built in urban areas, bypassing smaller communities. After building their networks, companies largely operated on their own in a mostly-free deregulated market, slightly overseen by the National Telecommunications Commission (NTC) — the Philippines equivalent of the FCC.

The early years of telecom deregulation seemed promising. PLDT, much like AT&T in the United States, kept the lion’s share of customers (67.24%) after deregulation took effect, but new competitors quickly captured one-third of the market. But with lax regulation and oversight, some of the Philippines’ most powerful families, many benefiting under years of the Marcos dictatorship, managed to gain influence in the newly competitive Philippines telecom business. In the United States, telecom competition meant a choice between Sprint, MCI, AT&T or others. In the Philippines, you dealt with one or two of nine powerful family owned conglomerates, each operating with a foreign-owned telecom partner. It would be like choosing between companies owned by the Rockefellers, the Astors, the Carnegies, or the Morgans.

pldtThe NTC remained more “hands-off” than the FCC, avoiding significant involvement in critical interconnection issues — how competing telephone companies handle calls from subscribers of a competing provider. That was last an issue in the United States in the early 1900s, where rare independent competitors to the rapidly consolidating Bell System faced a telecom giant that initially refused to handle calls from customers of other companies. American regulators eventually demanded interconnection policies that guaranteed customers could reach any other telephone customer, regardless of what company handled their service. In the Philippines, the NTC eventually mandated less-demanding access, allowing companies to charge long distance rates to reach customers of other companies. In the 1990s, it was not uncommon to find businesses maintaining at least two telephone lines with different companies to escape long distance expenses and stay accessible to all of their potential customers.

PLDT initially fought the opening of the marketplace but benefited handsomely from it once it took effect. The company got away with setting sky-high interconnection rates to connect calls from other smaller providers to its customers. It also made access to its network a minefield of bureaucracy and often required competitors to sign unfair revenue sharing agreements.

It is Cheaper to Buy Out the Competition Instead of Competing With It


(Image Courtesy: Mary Grace Mirandilla-Santos/LIRNEasia)

The investment community eventually balked at the cost of constructing competing telecommunications networks, especially after the dot.com crash in 2000, and a drumbeat for industry consolidation through mergers and acquisitions quickly grew too loud to ignore. Investors fumed over the amount of money being spent by providers to meet their service obligations in the 11 subdivided regions. Instead of building redundant or competing infrastructure, allowing competitors to merge would cut costs and enhance investor return. The NTC let the marketplace decide, as did the government, and it led to a frenzy of industry consolidation that ran far beyond what the FCC and American Justice Department would ever tolerate.

In 2011, the government backed a colossal merger that brought together the wireless networks of Pilipino Telephone Corporation, PLDT, and Smart under the PLDT brand. The three former competitors became one and controlled 66.3% of the Philippine’s wireless customers. The merger was comparable to allowing Verizon to buy out Sprint.

Additional mergers in response to the super-sized PLDT rapidly reduced the competitiveness of Philippine’s telecommunications marketplace to a duopoly. Just two companies — PLDT, Globe, and their respective house brands — dominate landline, DSL, cable, and wireless telecommunications service in the Philippines. The investment community celebrated the deal’s approval as a lucrative goldmine of future revenue gains from a less competitive market.

Philippine Broadband: Hey, It’s at Least Moderately Better Than Afghanistan


(Image courtesy: Mary Grace Mirandilla-Santos/LIRNEasia)

Broadband performance, under any measure other than financial success, has proved abysmal for Philippine consumers and businesses. The country’s broadband speeds are among the worst in the world, only beating Afghanistan in many speed tests. Look the other wayoversight led to a bribery scandal in 2007 that threatened to bring down the government. Officials exploring the development of a National Broadband Network were accused of soliciting kickbacks from Chinese equipment vendor ZTE, which would have been responsible for supplying equipment for the project. The government canceled the project as the scandal widened and some of the principals left the country or in at least one case were kidnapped.

Eight years later, broadband in the Philippines would be considered a North American nightmare. The free market approach has led to free-flowing profits and a profound lack of marketplace competition, with broadband ripoffs and broken promises rampant across the country.

Although both PLDT and Globe Telecom are spending large sums on infrastructure, much of it benefits their very profitable wireless networks and business customers. Despite the investments, residential customers are stuck with some of the world’s worst broadband speeds and performance.

An independent Quality of Service test revealed the bad news all around:

The findings of the Philippine QoSE tests were expected, but nevertheless still disappointing.

The best performing among the three ISPs delivered only 21% of actual versus advertised speed on average. This same ISP also offered at least 256kbps download speed (generally accepted definition of broadband) only 67% of the whole time it was tested, falling short of the required 80% service reliability.

The Broadband Commission defines the core concepts of broadband as an “always-on service” with high capacity “able to carry lots of data per second.” While there is no official definition of broadband locally, the Philippine Digital Strategy 2011-2016 defines broadband Internet service as 2Mbps download speed.

Finally, like the last nail in the coffin, Philippine ISPs performed the worst in terms of value for money when compared to select providers in South Asia and Southeast Asia. The highest value given by any of the three Philippine ISPs tested was a measly 22kbps per US dollar. This figure is too low when compared to similar mobile broadband ISPs that offer 173kbps per dollar in Jakarta, Indonesia and 445kbps per dollar in Colombo, Sri Lanka.

These results have huge implications on truth in advertising, consumer welfare, and the need for appropriate regulation.

My DSL Service is So Bad I Prefer 3GB Usage-Capped Slow Wireless Instead



Home DSL broadband is so bad that customers have increasingly dropped service in favor of tightly managed wireless service. Companies report DSL customer losses over the past few years, with no end in sight.

The telecom regulator has generally just shrugged its shoulders at the situation, suggesting competition between equally poor providers will somehow resolve the problem. That view is applauded by service providers who claim the Internet is “just a value-added service” not essential to basic living needs. But consumer groups wonder why providers are allowed to make false advertising claims about the speed of their service with no repercussions. A range of position papers appealing to the government to create a meaningful minimum broadband speed have been introduced and some are being pushed by members of the Philippine Senate.

Senator Loren Legarda joined scores of other frustrated customers complaining about unreliable and expensive Internet in the country. In a 2014 hearing Legarda complained she had once again lost her DSL Internet connection in her office and her wireless connection was so slow it was unusable.

“As we speak now, there is no Internet connection in my office,” Legarda said. “I received a message this morning from my staff on my way here because I may be e-mailing, etc. And for someone whose deadline was yesterday, I always want things done fast and I’m sure many of you want that efficiency too to serve our people better.”

http://www.phillipdampier.com/video/ANC Poor Broadband Internet 5-14.flv

ANC aired this story about Sen. Legarda’s broadband problems and how Philippines’ providers oversell their networks back in 2014. (4:56)

We Oversold Our Networks So Sue Us, Except You Can’t

Providers blame the problem on oversold networks that attempt to manage too many paying customers on an inadequate network. In other words, they blame themselves with little fear any regulator will create problems for them.

Wireless service is no panacea either. Customers in the Philippines face draconian “fair use policies” on so-called “unlimited plans” that leave them throttled after 1GB of usage per day or 3GB of usage per month, whichever happens first. Providers suggest the policy is a benefit, promising them a better user experience. Besides, they suggest, even those that run into the speed throttle can still browse the Internet, albeit at as speed resembling dial-up:

Your internet speed will slow down if you use up 1GB of data for the day, or accumulate 3GB of data usage for the month.

If you hit the 1GB/day threshold, you’ll experience slower speed, but no worries because as we mentioned above, you can still surf! You’ll move up to normal speed at midnight. If you hit the 3GB/month threshold, your speed will move up to normal speed on the next calendar month (not based on bill cycle).

With a stifling usage allowance, shouldn't providers in the Philippines be offering better speeds?

With a stifling usage allowance, shouldn’t providers in the Philippines be offering better speeds?

Say Hello to the “Promo Pack” – Your Net Neutrality Nightmare Come True

Remember the scary ads from Net Neutrality proponents promising a future of Internet add-ons that would charge you to surf theme-based websites without facing network slowdowns or stingy usage caps if Net Neutrality protections were not forthcoming? In the Philippines, the nightmare came true. Mobile providers sell added cost “promo packs” that bundle extra throttle-free usage with theme-based apps. A package with Spotify runs about $6.50US a month and includes 1GB of usage. Anyone can buy a Spotify premium membership in the Philippines for around $4.37US without the add-on. But even worse are app-based promo packs that bundle free-to-download-and-use apps in the U.S. with special designated usage allowances.

Want to use Google Maps on your wireless provider? A “promo pack” including it costs around $2.17 a month and includes 300MB of usage. That money doesn’t go to Google — it stays in the pocket of the provider – Globe Networks. Twitter will set you back $4.37US a month and includes 600MB of usage, which seems odd for a short message service when contrasted with an identically-priced promo pack for Facebook, that needs the extra usage allowance more than Twitter likely would. But then they also get you for Facebook Messenger, which costs an extra $2.17US per month and comes with its own usage allowance — 300MB.

"What If" actually "Is" in the Philippines.

“What If” actually “Is” in the Philippines.

Globe-Telecom3While segmenting out popular mobile apps for special treatment, Philippine mobile providers have also taken Verizon and AT&T’s lead, pushing plans like myLIFESTYLE that bundle unlimited text and phone calls with expensive data plans.

Lifestyle Promo Packs:

Lifestyle Bundle

Price (Philippine Peso)

Consumable MBs/GBs





Premium membership to Spotify, with 1GB data



Access to Gmail, Yahoo Mail, Evernote, + 10GB Globe Cloud Storage
Explore Bundle



Access to Agoda, Trip Advisor, Cebu Pacific, PAL
Navigation Bundle



Access to Waze, Grab Taxi, Google Maps, MMDA app, Accuweather
Shopping Bundle



Access to Zalora, Amazon, Ebay, OLX, Ayosdito



Access to Facebook



Access to Twitter



Access to Viber
FB Messenger



Access to FB Messenger
Chat Bundle



Access to Viber, Whats App, FB Messenger, Kakao Talk, Line, WeChat
Photo Bundle



Access to Instagram, Photogrid, Photorepost, Instasize

Extra Add-ons:

Basic Price Description
Consumable 100 Stackable Amounts of P100 denomination consumables
Unli Duo 299 Unlimited Calls to Landline/duo
Unli Txt All 299 Unlimited Texts to other networks
Unli iSMS 399 Unlimitend International SMS to one intl. number
Unli IDD 999 Unli IDD calls to one intl. number
DUO International 499 Unlimited calls to US landlines

The Philippines Should Regulate Under the American Example vs. The Philippines Should Not Regulate Under the American Example (It’s Obama’s Fault)

Lincoln_MemorialProviders in the Philippines have learned a lot from America’s telecommunications lobbyists. Their advocacy campaigns revolve around the theme that the United States has the best wireless networks in the world, developed under a largely hands-off regulatory philosophy that the Philippine government should follow.

The government and regulators largely acquiesced to that campaign until this year, when that idea came back to haunt providers. Earlier this year, the Obama Administration and the FCC began taking a more hands-on approach to telecom regulation after recognizing the marketplace is not as competitive as providers suggest. Strong Net Neutrality enforcement, limits on mergers and acquisitions and strong signals marketplace abuses would no longer be tolerated are now being pushed in Washington by the White House and the Federal Communications Commission. Providers in the Philippines no longer advocate following the American model, but it may now be too late.

obamaThe NTC is close to issuing new minimum broadband speed and performance standards and is now listening to Filipino consumers that launched Democracy.net.ph to fight usage caps in the Philippines back in 2011. The NTC may soon require providers advertise average speeds and performance, not “up to” speeds nobody actually receives. Those getting poor service would be entitled to refunds or rebates.

That could be the first step towards a more activist NTC that may have learned the lesson that listening to the broken promises of better service through deregulation has resulted in some of the worst broadband performance the world has to offer. The Philippines took the advocacy arguments of the deregulation crowd and doubled down, not only allowing providers to lie and distort in their advertising, but also permitting massive industry consolidation reducing the choice for most Filipinos to just two providers for almost all telecommunications services. The government looked the other way as corruption turned into a scandal and today it is left with two very powerful conglomerates that deliver third world Internet access while pocketing the generous proceeds.

A Better Way to Better Broadband

A deregulated, free market only works where healthy competition exists. Too few players always leads to reduced innovation, poorer service at higher prices, and a corporate fortress deterring would-be competitors that are unlikely to be able to survive in a fair, competitive fight. For the Philippines (and by extension the United States) to fully benefit from healthy competition, large conglomerates must be broken up and further mergers must be prevented above all else. Until sufficient competition can self-regulate the marketplace, strong oversight is necessary to protect consumers from the abuses that always come from monopolies and duopolies. Charging wireless customers for free apps and suggesting 3GB of usage is equal to unlimited broadband are two places to start cracking down, quickly followed by an investigation into where investment dollars are being spent and for whose benefit. It seems like customers are not reaping any rewards in return for high-priced service.

The Philippine government should also continue exploring a National Broadband Network strategy that puts the country’s broadband needs above the profit motivations of the current duopoly. Governments build roads and bridges, airports and railways. Broadband is another infrastructure project that needs to be developed in the public interest. If private companies want to be a part of that effort, that is wonderful. But they should not be dictating the terms or holding the country back from what may be the biggest scandal of all — broadband that barely performs better than what the Taliban can get these days in Helmand province.

Wireless Data “Traffic Explosion” is a Fraud; Network Densification Deferred

Analysys Mason logoDespite perennial claims of an unmanageable wireless data traffic tsunami threatening the future of the wireless industry, there is strong evidence wireless data traffic growth has actually flattened, increasing mostly as a result of new customers signing up for service for the first time.

Expensive wireless data plans and usage caps have left consumers more cautious about how they use wireless data, reducing the demand on wireless networks and allowing carriers to defer plans for aggressive network densification they claim is needed to keep up with demand.

Analysys Mason discovered some of the biggest victims of the myth of the traffic tidal wave are the manufacturers and dealers of small cell equipment hoping to make a killing selling solutions to the wireless traffic jam. Vendors attending the ‘Small Cell, Carrier Wi-Fi and Small Cells Backhaul World’ event will have no trouble filling the modest amount of orders they likely received this year. While there is money to made selling small cells to manage data usage in very high traffic locations including shopping and sports venues, AT&T dropped plans to deploy 40,000 small cells on its network by the end of 2015, a goal that had been a key element of its Project Velocity IP (VIP) network initiative, and no other U.S. carrier has shown as much interest in small cell technology as AT&T once did.

It turns out, Rupert Wood, principal analyst at Analysys Mason writes, most operators admit they are not experiencing much “pain” managing data growth. As a result, rapid public small-cell densification, an important indicator of heavy traffic growth, is continuously deferred.

As customers confront costly, usage-limited data plans, they are deterred from the kind of usage that might actually create widespread traffic issues for wireless carriers. Instead, carriers are primarily relying on a mix of data caps, incremental upgrades, and gradual expansion of their traditional cell tower networks to keep 4G performance stable and expand coverage areas to improve customer satisfaction. AT&T claims most of its traffic concerns were abated with the 2014 acquisition of Leap Wireless’ Cricket network, which added to AT&T’s network capacity. The Cricket network never came close to offering nationwide coverage, however.

Figure_2_webWhen pressed for specifics, many wireless carriers eventually admit they have enough spectrum to handle today’s traffic demand, but will face overburdened and insufficient capacity tomorrow. But that is not what the evidence shows.

Analysys Mason:

Nations where the use of 4G is highest are not experiencing exponential growth in mobile data traffic. In fact, they have not been doing so for some time – even in developed Asia–Pacific. In the US, the CTIA recently recorded 26% traffic growth in 2014. If this figure is correct, the average usage per US mobile data subscriber barely changed at all in 2014: the recorded number of data subscribers grew by 22%, and the expected exponential curve of data traffic has morphed into an s-curve.

In fact, with wireless pricing so high in the United States, traffic growth here is minimal in comparison to Sweden, Hong Kong, South Korea and Japan. Most shift their usage to Wi-Fi as often as possible instead of chewing up their monthly data allowance.

Analysys Mason believes the forthcoming introduction of LTE-A — the more efficient next generation of 4G — will allow carriers to expand capacity on existing cell towers as quickly as future demand mounts without the need for massive numbers of new towers or small cells.

The analyst firm labels today’s cellular platform as a low-volume, high-cost network. If providers cut prices or relaxed usage caps, traffic would grow. It recommends operators should focus on increasing the supply of, and stimulating the demand for, data usage, and not simply expecting demand to come at some point in the near future. The analyst believes constructing a network of fiber-connected small cells may open the door to an exponentially higher capacity wireless network that performs better than traditional wireless data services and is robust enough to support high bandwidth applications that demand a strong level of network performance.

It would also benefit fiber to the home providers that could also market wireless backhaul service to wireless companies, helping defray the costs of constructing the fiber network and further monetizing it.

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