Some of the crowd at Sunday's rally in Charleston

Verizon employees affiliated with the Communications Workers of America turned out in force Sunday to protest the proposed sale of Verizon’s West Virginia operations to Frontier Communications of Connecticut.

Hundreds of workers and union members rallied at the West Virginia Culture Center in Charleston, the state capital, to protest the deal.

The CWA is concerned the transaction will enrich a handful of corporate executives and Wall Street bankers while saddling the state with sub-standard phone and Internet service for years to come.  Frontier Communications will assume enormous debt to make the deal happen with Verizon, and set itself down the same path that ended in bankruptcy for two similar deals in the recent past involving FairPoint Communications and Hawaiian Telcom.

Union members are, of course, concerned about their future employment prospects at a Frontier-owned operation, but insist they are also concerned with the citizens of West Virginia.

“I work in the community and live in the community. I want to be able to go out to the stores with nobody yelling at me for not being able to provide service for them,” said Jim Radcliff, a Verizon employee.

(from left to right) CWA Pres. Larry Cohen, Local 2003 Pres. Anekia Greiner, and CWA District 2 VP Ron Collins

West Virginia’s governor Joe Manchin made an appearance at the rally, saying he has concerns about the proposed sale, and joined labor and community leaders to say he would do everything in his power to make the proposed deal work for working families in the state, not just Wall Street bankers.

Other rally speakers included Sen. Jack Yost, Del. Mike Caputo, state AFL-CIO President Kenny Perdue, and representatives from the firefighters, nurses and senior citizens.

Firefighters and other public safety officials are concerned about potential disruptions of 911 service, which were an ongoing problem after FairPoint Communications took control of Verizon lines in northern New England.

[flv]http://www.phillipdampier.com/video/CWA 911 Service At Risk Ad.flv[/flv]

The Communications Workers of America is concerned the sale of Verizon’s phone lines to Frontier Communications could cause disruptions in 911 service, as happened with FairPoint Communications in northern New England.  The CWA is running this ad in West Virginia.

“We need to bring high speed broadband to West Virginia and communities across the country, to foster economic growth,” CWA President Larry Cohen said.  “Instead, Verizon is using an obscure tax loophole to do a tax free deal that will leave West Virginia without a platform for achieving the speeds that are necessary for economic development.  This deal is only good for Wall Street, not Main Street.”

Cohen was speaking about Verizon’s use of the Reverse Morris Trust provision in corporate tax law, which Stop the Cap! explored last fall in detail.  This transaction could cost taxpayers as much as $600 million in lost tax revenue.

Audio Clip: Communications Workers of America Frontier-Verizon Radio Ad (30 seconds)
You must remain on this page to hear the clip, or you can download the clip and listen later.

[flv]http://www.phillipdampier.com/video/WCHS Charleston Union Opposes Sale of Verizon Landlines 1-10-10.flv[/flv]

WCHS-TV in Charleston covered the weekend rally by CWA opposing the sale of Verizon’s landlines to Frontier Communications. (2 minutes)

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/CWA Rally Excerpts 1-10-10.flv[/flv]

Here are some excerpts from Sunday’s rally including speakers protesting the proposed sale and praising union involvement in consumer protection. (courtesy: LairdWilliam) (10 minutes)

Under stiff opposition from the nation’s broadcasters, the Federal Communications Commission has dropped a proposal to reallocate a significant chunk of the UHF broadcast television spectrum to wireless communications companies.

As Stop the Cap! recently reported, the wireless industry sought the reallocation to broaden the bandwidth available for wireless broadband services.  The proposal would have paid broadcasters to adopt a new “cell tower”-like model of repeater antennas to provide broadcast television in more localized areas, reducing distant signal reception.  This would permit stations to be packed closer together with less chance of interference with each other.  Broadcasters reacted angrily to the proposal, suggesting it would limit reception and the launch of additional channels and communications services available from their new digital television service.  It would also cause a nightmare for consumers less than a year after the end of most analog television transmissions.

For now, the FCC will adopt a voluntary strategy allowing stations to relinquish spectrum and receive compensation.

The wireless industry was not happy with the decision, and the industry’s trade and lobbying group weighed in.

“The record overwhelmingly demonstrates there’s a need for additional spectrum for mobile broadband services,” said CTIA President and CEO Steve Largent. “We continue to believe that all spectrum should be on the table for potential reallocation, including the almost 300 MHz allocated for broadcast television use, which is spectrum most favorable to mobile broadband. We look forward to working with the Commission and the broadband team to consider mechanisms to put spectrum to its highest use.”

DataJack's dongle, sold for $99

Imagine truly unlimited 3G wireless broadband for $39.99 a month with no contract, no usage cap, no credit check, and no throttled speeds, all delivered from a small USB dongle that can connect to any netbook, laptop, or home computer.  That’s the premise behind DataJack, a new product from Dallas-based QuamTel, Inc.

“3G provides high speed Internet service at average download speeds of 700kbps to 1.4 Mbps. That’s 2.4 times faster than many DSL connections,” trumpets DataJack’s web page.

Customers can purchase DataJack in a handful of retail stores or purchase directly from the company for $99, which covers the cost of the dongle.  Monthly service fees are deducted from the customer’s credit card, and they can use the service as often as they like, and cancel at any time.  If you use the service for 12 months in a row, you’ll get a free month of service.

Sounds like a deal, right?

Stop the Cap! always appreciates providers who don’t limit customer use of their products, so our initial plan was to inform readers about a possible alternative to the ubiquitous $60 for 5GB wireless broadband plans on offer from the major U.S. providers.  But just because a product sounds good doesn’t mean it actually is good, so we thought taking a closer look would be appropriate, and we were glad we did.  You will be, too.

The promise for unlimited 3G wireless broadband sounds exciting, but unfortunately the promise goes unfulfilled for too many who have tried the service.

DataJack doesn’t own their own wireless network.  They contract with Wyless, which resells access to other companies’ wireless networks.  DataJack launched service relying on T-Mobile’s 3G wireless network, which offers service in many major U.S. cities, but by no means offer comprehensive coverage across the country.  Where 3G access is not available, DataJack falls back on older GPRS or EDGE connectivity, which offers far slower connections.

Earlier this month, DataJack’s website showed a coverage map that mirrored that of T-Mobile, which gave away the identity of who was supplying connectivity to the company.  Potential customers could also enter their zip code on DataJack’s website and learn if coverage was available in their area.  They could also write DataJack customer service, and a representative would send back additional information, including the percentage of customers who had fair, good, or great 3G coverage in that zip code.

Dear Valued Customer,

Thank you for your inquiry. Your coverage details are below:

Zip Code: 370XX
Zip Code Name: LEXXXXXXX
T-Mobile 3G Coverage Available Here.
Great Coverage: 37%
Good Coverage: 64%
Fair Coverage: 72%

This means that 72% of your area will have 3G connection, while 27% of your area will have the strongest signal with the fastest speeds. All 3G service area will connect to a high speed connection however, so you will still be able to upload and download at a high speed. If you have any additional questions, please feel free to either respond to this email or give customer service a call at 1-888-693-4522. We appreciate your interest in our product.

Regards,
Josh Kessell
DataJack Support

Several customers considering the service discovered a far better indication of what kind of service they could expect to receive could be found on T-Mobile’s own website, where its 3G coverage map could be zoomed in to street level.

Early adopters of new products are often the first to uncover problems, and it turns out there were plenty with DataJack.

A Texas customer's speedtest results when using DataJack

First, despite company claims of “coverage” on the DataJack website, that doesn’t necessarily mean 3G coverage.  Much like the spat between AT&T and Verizon Wireless over the size and scope of their 3G networks, DataJack considers the much slower GPRS and EDGE networks to represent “coverage” even though their marketing materials heavily promote the product as delivering 3G service (and corresponding speeds).  Customers across the country were told by the website, as well as company representatives, that 3G service was available in their respective areas, but customers soon discovered that wasn’t true.

A customer in middle Tennessee on Howard Forums wasn’t impressed.

“Thumbs down for DataJack in Middle Tennessee. I received my device today and only connected to the GPRS network with 44kpbs downloads. I drove in a 45 mile radius, and this never changed,” he writes. “DataJack insisted there was 3G coverage here, in fact stating that 72% of my zip code was covered. Clearly 44kpbs is barely dialup, and not acceptable! The T-Mobile coverage maps tell the true story. If you’re not in a dark maroon/purple coverage area, don’t expect any speeds above GPRS/EDGE.”

Another customer in Paragon, Indiana reports he was told by a company representative 3G service was available in his area, but quickly learned that wasn’t true.

“I got the modem in the mail this morning, hooked it up and it got stuck searching for a network.  I checked the T-Mobile coverage area and it shows no coverage at all in my area,” Danny writes.

In fact, T-Mobile offers no data coverage of any kind in that part of Indiana.  Danny returned DataJack for a refund.

Second, promised speeds don’t come close to actual real-world experience with DataJack.

A customer in Orlando shares his story:

I can understand how this can be unlimited service.  It’s not much better than dial-up so you won’t use a great deal of bandwidth downloading data. The manufacturer boasts upload speeds up to 5.76Mbps and download speeds of up to 7.2Mbps. Maybe that’s true, if you’re sitting under the tower but not in real life.

[After purchasing DataJack] I was ready to scream across the Internet and the blazing speeds they advertise … NOT!  I was able to hit the high 400’s (kbps) for my download and the low 200’s for upload and I was hooked up to EDGE (not 3G), adequate for e-mail as long as there were no attachments. What a disappointment! Results from home were a little better but not impressive.

Bottom line, don’t expect a lot from DataJack.  It does give you the freedom of mobility without signing a contract but you need to decide whether it’s worth the $40 or is it worth another $20 to $30 for more bandwidth and better performance.

Many others report underwhelming speeds when using DataJack, although a few in major urban areas did achieve speeds closer to the 1Mbps level promoted as available by DataJack’s marketing material.

Their website has been undergoing some transformation since we first learned of DataJack from regular Stop the Cap! reader Kirk.  Two weeks ago, the site included a coverage map, which made it simple to identify T-Mobile as the provider of connectivity.  That map is now gone.

Speed test results for the California Delta region

In fact, the entire website has been gone for more than 24 hours now, first displaying a message claiming “overwhelming demand” brought down their server, which seems unlikely.  As of last evening, the site was down completely, generating “page not found” errors.

Whether these problems represent growing pains or marketing promises that don’t match reality remains uncertain at this point.  Relying exclusively on T-Mobile’s limited 3G network seems unwise for a product being marketed nationwide.  It’s unclear why DataJack doesn’t leverage the network agreements Wyless maintains with multiple domestic providers:

• Cincinnati Bell Wireless
• Cingular AT&T (east/west/genesis)
• Sprint Nextel
• T-Mobile

If Wyless could sell access on Cingular/AT&T’s network to DataJack, it would help fill some of the coverage gaps.  Sprint/Nextel doesn’t provide GSM network service, currently required by DataJack’s dongle.

It may be wise to wait for some of these issues to be worked out before investing $99 in a product that may not provide a reasonable wireless broadband experience in many areas.  Perhaps these early problems can be resolved and improved speeds can be delivered.  The company maintains a 14-day return policy if you want to give DataJack a try in your area.

[flv width=”474″ height=”340″]http://www.phillipdampier.com/video/DataJack Ad CES 1-2010.flv[/flv]

Cox has a Facebook page devoted to asking customers what they think would be fair in wireless products and pricing.

The cable industry’s definition of “fair” doesn’t always seem to connect with average consumers, who too often discover what sounds like a good deal to the local cable company isn’t a good deal for them.  Despite the skepticism, Cox Communications thinks it has a deal for you… an “unbelievably fair deal” for consumers looking for wireless service.

Cox already has a website up and running, unbelievablyfair.com where Cox Cable customers can register with their e-mail address and get updates on service availability.  They also get a free OnDemand movie coupon.

If you’re wondering what Cox is up to, here’s the scoop.

Back in 2006, Cox and several other cable companies bid for and won several frequency blocks suitable to support wireless services.  Those frequencies, along with a partnership with Sprint Nextel, are expected to serve Cox’s entry into the wireless business.  Initially launching in Hampton Roads, Virginia, Omaha, Nebraska, and Orange County, California, Cox will use Sprint’s CDMA 3G network to support its wireless service at the outset.

The company hasn’t revealed exactly how “unbelievably fair” their pricing actually is, but based on the company’s advertising campaign, it’s a safe bet it will be free from the tricks, traps, and gotchas bigger players in the market stick to their customers.  Minute plans would likely provide “rollover” of unused minutes, if not kicking the minutes bucket right out of the equation with flat rate service.  Hidden extra fees and surcharges are also unlikely to be a part of Cox Wireless’ service plans.  That could ultimately mean a plan priced competitively with Boost Mobile or Tracfone Wireless’ Straight Talk.

Cox will eventually enhance Cox Wireless and provide it in other Cox Cable service areas, as well as building out its own wireless network.

“Our research found that value and transparency are very important to consumers when choosing a wireless service plan, but they are not finding these qualities in the wireless plans offered today,” said Stephen Bye, vice president of wireless. “Total loss of unused minutes as well as unforeseen overage charges on bills are just two examples of what our customers have told us is just unfair.”

Customers have been following Cox’s invitation to join in a discussion about wireless pricing fairness on the company’s Facebook page (click the logo above to access).  From a quick review of comments, customers want lower pricing, more bundled discounts, a better handset selection, better speed, and our personal favorite – no Internet Overcharging schemes like usage caps and limits on their data network.

Cox is rolling out a major marketing campaign to promote Cox Wireless, including advertising and discussions on company-produced programs airing on Cox Cable systems in the communities where service will arrive this spring.

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/Cox Wireless Advertising Campaign.flv[/flv]

Cox Wireless’ marketing campaign includes three ad spots and a website intro. (2 minutes)

[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/Cox Connections 1-2010.flv[/flv]

Cox Cable in Hampton Roads, Virginia briefly mentions Cox Wireless in ‘Cox Connections,’ a company-produced program airing on Cox Cable.  (6 minutes)

More than a month after Mediacom promised customers their e-mail glitches were solved, problems continue to plague Mediacom customers in Iowa who continue to discover missing e-mail, inaccessible accounts, and delayed messages.  The problem has worsened to the point it merited coverage on the evening news in Des Moines.

Mediacom’s efforts to switch to an “in-house” e-mail system to improve service have caused repeated problems for Mediacom customers who simply can’t get to their e-mail.  The company blamed the problems on “software upgrades” which bring the system down while updates are installed.  Mediacom claims to try and limit downtime to the early hours of the morning when most customers won’t notice.

But they do.

Consumer Reports just released rankings of cable operators in its February 2010 issue and Mediacom rated near the very bottom — 15th of 16 companies providing TV service, dead last among 23 cable “digital phone” providers, and 24th out of 27 Internet providers, and that was only because the very worst-rated Internet providers deserve a special place in hell for their fraudband satellite service.

Mediacom’s worst ratings?  Their lousy reliability and customer service.

“We recognize that we have to continue to do a better job in customer service, and in the past year we committed significant resources to service improvements,” Phyllis Peters, a Mediacom spokeswoman, told the Des Moines Register.

While those service improvements work their way through the system, Mediacom customers don’t have to wait.  They can obtain a Gmail address in seconds and bypass Mediacom’s e-mail nightmare for good.

[flv width=”512″ height=”308″]http://www.phillipdampier.com/video/WHO Des Moines More Email Problems For Mediacom Customers 1-13-10.flv[/flv]

WHO-TV in Des Moines, Iowa tells the story of an ALS sufferer who depends on e-mail service contending with Mediacom’s inability to provide it. (3 minutes)