AT&T’s WarnerMedia Sets HBO Max Launch Date: May 27

Phillip Dampier April 21, 2020 AT&T, Competition, Consumer News, HBO Max, Online Video Comments Off on AT&T’s WarnerMedia Sets HBO Max Launch Date: May 27

Get ready for another huge streaming platform, America. HBO Max from AT&T’s WarnerMedia is scheduled to debut Wednesday, May 27th with over 10,000 of content encompassing the libraries of HBO, Adult Swim, Cartoon Network, Crunchyroll, CNN, Looney Tunes, Rooster Teeth, TBS, TNT, truTV, and Turner Classic Movies.

HBO Max will replace HBO Now — the premium movie network’s subscription service for cord-cutters, and will remain priced at $14.99 a month. Those who currently subscribe to HBO through Charter Spectrum, AT&T TV (and TV Now), or DirecTV will get access to the HBO Max service at no additional cost.

WarnerMedia is positioning the service as a general interest streaming platform and super-sized HBO offering, sold as “Where HBO meets so much more.” It will combine legacy network TV content with original HBO movies and shows, and productions made especially for HBO Max.

“Our No. 1 goal is having extraordinary content for everyone in the family, and the HBO Max programming mix we are so excited to unveil on May 27th will bear that out,” said Bob Greenblatt, chairman of Warner Media Entertainment and Direct-To-Consumer. “Even in the midst of this unprecedented pandemic, the all-star teams behind every aspect of HBO Max will deliver a platform and a robust slate of content that is varied, of the highest quality, and second to none.”

HBO Max is likely to face challenges that its closest competitors — Netflix, Hulu, and Amazon Prime Video do not. First, the service will launch with a premium price – $14.99 a month, which is more than double what Hulu charges and more than streaming leader Netflix, which suffered a growth slowdown after the last price increase brought its most popular plan to $12.99 a month. Second, the streaming market has become saturated with services that launched before HBO Max, which may potentially limit enthusiasm in these times of economic uncertainty. Disney+ launched with heavy discounting and comes free to a number of customers through cross-promotions with other companies. A subscription service asking for $15 a month at launch may prove a difficult sell, especially to those with no interest in HBO. Third, the HBO brand conveys an impression to would-be customers about the platform’s content. HBO has been criticized for its “male-centered” programming, replete with violence and sexual content. The brand itself may be a hard sell in conservative households with younger children, despite the fact it will feature a large roster of classic and new Looney Tunes cartoons, a Sesame Street original, and other family-friendly programming.

Subscribers will find content on the platform including:

Classic TV Shows: “Friends,” “The Big Bang Theory,” “South Park”

Movies: all Studio Ghibli films, films from Warner Bros., New Line and DC like “Joker,” “Suicide Squad,” “Wonder Woman,” “The Matrix,” “Casablanca” and “The Wizard of Oz.”

Originals: Comedy series “Love Life” starring Anna Kendrick, documentary “On the Record” about accusations of sexual harassment and rape against hip-hop mogul Russell Simmons; “Legendary,” an underground ballroom dance competition series; “Craftopia,” hosted by YouTube star LaurDIY; an all-new “Looney Tunes Cartoons” from Warner Bros. Animation; and Sesame Workshop’s “The Not Too Late Show with Elmo.”

Watch the trailer from HBO Max original “Love Life,” starting May 27. (1:57)

Frontier Communications Declares Bankruptcy; Documents Show Company Spent Millions to Retain Customers

Phillip Dampier April 16, 2020 Consumer News, Frontier 2 Comments

Frontier Communications filed for bankruptcy reorganization protection this week with more than $10 billion in debts and departing customers, despite retention efforts that cost the company more than $5 million a month.

The company had warned investors it was considering restructuring and failed to make a timely bond payment to cover a portion of its debts. Frontier had been in negotiations with debt holders for several months, attempting to secure a Restructuring Support Agreement that would reduce debt in return for an equity stake in the company. At least 75% of unsecured bondholders are reportedly on board with a deal that would free up money to spend on fiber optic upgrades.

Most of Frontier’s legacy customers are served by a deteriorating copper wire network designed for basic landline phone service. The company’s DSL internet service has been roundly criticized for being slow and unreliable. Instead of upgrading copper customers to fiber service, Frontier instead spent billions acquiring new territories from other phone companies, notably Verizon Communications and AT&T. The acquisitions did not deliver the financial returns the company expected, and customers canceled service after Frontier botched billing and service transitions that left some without service for weeks.

Today, Frontier has about four million customers, 3.5 million broadband subscribers and 18,300 employees operating in 29 states. The company has arranged a debtor-in-possession loan of $460 million from Goldman Sachs Bank to continue operating during the bankruptcy reorganization. It also expects to receive an additional $1.35 billion in cash later this month from the sale of its territories in Idaho, Montana, Oregon, and Washington to Northwest Fiber.

Frontier also divulged new details about its deteriorating business to the Bankruptcy Court:

  • Frontier estimates it spends approximately $1,000 for each new residential customer and $2,500 for each new commercial customer.
  • Almost all of its new customers sign up for service under a sales promotion. “On average, [Frontier] spends approximately $1.3 million per month on marketing campaigns.”
  • Customer retention efforts are crucial for Frontier, which has been losing customers at an alarming rate. Frontier uses three enticements to convince customers to stay: “Save Offers,” “Roll-Off Offers,” and “Discretionary Credits.”
  • “Save Offers” are a classic retention tool, offering enticements to customers threatening to cancel. Frontier offers free premium channels, reduced rates, and/or discounted service upgrades to convince customers not to leave. Frontier disclosed it pitches approximately 24,000 Save Offers each month, a sign many customers are prepared to cancel their accounts.
  • “Roll-Off Offers” are made to customers calling to complain about their bill after their new customer promotion ends. Frontier regularly offers complaining, bill-shocked customers a new, less generous promotion going forward. For example, an expiring new customer discount of $60/month might be replaced with a $30/month discount if the customer agrees to stay. These offers typically last six months to a year and still leave the customer eventually paying regular prices. Frontier disclosed that it loses many more complaining customers than it keeps after promotions expire. About 16,000 customers per month (or roughly one-fourth of customers complaining about an expiring promotion) are retained as customers because of a roll-off offer.
  • “Discretionary Credits” are one-time bill credits given when customers call with service complaints, reports of damage done to private property by Frontier, or missed time guarantees for service calls. Frontier admitted it is currently paying out an average of $3.9 million a month in Discretionary Credits to upset customers.

Post bankruptcy, Frontier has proposed undertaking a modest fiber upgrade program in its more profitable territories where a significant return on investment for fiber upgrades can be demonstrated. That is unlikely to include many of Frontier’s rural service areas.

Will Dish Wireless Actually Launch Its Own Network? Some Think Not

The merger of T-Mobile and Sprint would never have been approved by the Justice Department had Charles Ergen not promised to launch a new nationwide wireless competitor to protect competition. But now Ergen may be wavering over his commitment.

The founder of satellite TV company Dish Network had promised to spend nearly $10 billion to build a new 5G network capable of reaching 70 percent of the population by June 2023 as part of negotiations between T-Mobile, Sprint, and the federal government. But with the coronavirus pandemic shutting down the U.S. economy, the New York Post reports the company will have a difficult time finding the money to build that network.

“I think whatever rosy projections Charlie had are now very questionable,” said a source who expected to be part Dish’s lending group. “There is no financing to build a telecom network.”

Oddly, Ergen predicted just such a scenario in December when he testified to Dish’s ability to replace Sprint. In order to prove he was fit for the job, the 67-year-old media mogul showed off letters from three banks — Deutsche Bank, JPMorgan and Morgan Stanley — saying they would gladly fund his expensive network construction.

“Where the markets are today — if we don’t have another 9-11, God forbid — the banks are confident,” Ergen told the packed courtroom.

That testimony helped convince Manhattan federal judge Victor Marrero to approve T-Mobile’s $26 billion acquisition of Sprint, despite calls by a group of attorneys general, including Letitia James of New York, to block the deal, which they said would reduce competition and increase prices for consumers.

Ergen’s commitment to build a new fourth national wireless carrier was crucial for T-Mobile and Sprint to win regulatory approval of their $26 billion merger, which will reduce the number of national wireless competitors to three. That merger secretly received help from the country’s chief antitrust enforcer, Makan Delrahim. The Trump-appointed regulator, who serves as the head of the Justice Department’s antitrust division, exchanged numerous text messages between himself and top executives of Sprint, T-Mobile, and Dish to help salvage a merger deal under heavy criticism from Democrats and consumer advocates. Delrahim signaled his approval of the merger if Dish promised to buy Sprint’s prepaid wireless brand Boost and was offered access to T-Mobile’s wireless network to help launch Dish Wireless as a new competitor. But executives from Sprint and T-Mobile repeatedly quarreled over the details of the merger with Ergen, forcing Delrahim to intervene and bring the parties together to smooth things over.

Several consumer advocates and state attorneys general questioned the merger and Ergen’s commitment and capacity to serve as a new competitor. Ergen has warehoused wireless spectrum for years and has yet to meaningfully deploy it, deal critics contend. Additionally, Dish Wireless will be unlikely to achieve the scale and size of Sprint, the wireless carrier absorbed by the merger. That could mean it would be unable to deter anti-competitive behavior by the three larger companies — AT&T, Verizon, and the New T-Mobile. The most skeptical suggest Ergen has no intention of constructing a network for Dish Wireless. Instead, they contend he quietly intends to sell the wireless operation and potentially sweeten the deal by including Dish’s satellite TV business, its existing portfolio of unused wireless spectrum, or both.

If Ergen cannot meet the 2023 deadline, regulators could fine his company $2 billion and force it to relinquish the $12 billion worth of wireless spectrum Dish Network has been warehousing for years.

To succeed, Ergen will need Wall Street banks to cooperate and continue extending Dish Wireless credit. He will also need to find capable engineers ready to place 5G infrastructure on thousands of cell towers at the same time other wireless providers are building 5G networks of their own. None of this will be possible until the coronavirus crisis abates and the economy recovers. Despite this, some analysts are willing to still give Ergen the benefit of the doubt.

“Two months of severe market uncertainty doesn’t really alter my view of a company to execute on a three-year plan,” Lightshed Partners Analyst Walt Piecyk told The Post, saying it is too soon to question if Ergen will meet the deadline.

Ergen may also be able to convince regulators to approve a delay, pushing out the deadline. Assuming Ergen closes the deal to acquire Boost Mobile, which currently relies on Sprint’s 4G network to service its prepaid wireless customers, Boost will likely be rechristened Dish Wireless and serve as Ergen’s contribution to a competitive wireless industry until his own network gets off the ground.

Frontier’s Network is Falling Apart in West Virginia; Audit Finds Company Needs to Improve Maintenance

Frontier provides service to all but around a half dozen communities in West Virginia.

A comprehensive independent audit of Frontier Communications operations in West Virginia found the phone company is not keeping up with network maintenance, causing increased service problems for the company’s customers.

The significantly redacted 164-page report produced by Schumaker and Company found plenty of room for improvement for Frontier’s landline and broadband services.

The report was commissioned under order by the West Virginia Public Service Commission after the regulator received almost 2,000 customer complaints about Frontier’s service. The PSC’s demand for an audit also received the support of over 700 Frontier customers in the state.

Despite several redactions, the report offers clues about the quality of Frontier’s infrastructure for landline and internet services in West Virginia.

Frontier provides service for all but a half dozen localities in the state. Because of West Virginia’s mountainous topology, significant portions of the state do not receive adequate cellular service, making wired landlines still an essential safety tool in some areas. Despite that, Frontier’s relatively poor performance has driven away a significant number of its customers. Some subscribe to cable phone service, but most now depend on cell phones.

A Frontier crossbox in use in West Virginia.

The PSC allowed Frontier to offer a redacted public version of the auditor’s report after Frontier cited confidential business information and the Commission’s lack of regulatory oversight over the company’s DSL internet service. The redactions were substantial, blotting out significant information such as the age of Frontier’s network and equipment in different corners of the state, the condition of the company’s large number of utility poles, outage statistics, budgeting and investment numbers, repair programs, and basic information about the company’s employees and its broadband service offerings. The PSC staff filed its own recommendation that such redactions be rejected, noting Frontier is the unique carrier of last resort in West Virginia, with no competitor likely to attempt similar service. Staff members also claimed the telecom industry would find data specific to West Virginia not very useful elsewhere.

Despite the redactions, it is easy to deduce Frontier has a significant problem. Its copper landline network is gradually succumbing to a lack of regular maintenance, which can cause prolonged service degradation and outages. The audit specifically cites Frontier’s growing challenges dealing with a copper wire network that has been on utility poles for decades. Some wiring is likely to have been installed during the Johnson or Nixon Administration. The audit found that previous owner Verizon embarked on two significant copper line replacement programs, one in 1974 and the other in 1983 — 46 and 37 years ago, respectively. No large scale replacements have been undertaken since.

Phone companies like Frontier have been losing landline customers for years. The audit estimated that “more than half (57%) of American homes only have wireless communications. The displacement is even more pronounced when viewed through the prism of demographics. Over three quarters (76.5%) of young adults (aged 25-34) live in homes with only wireless connections.” In 2018, Frontier told the PSC 37 percent of its access lines were permanently disconnected between 2010 and 2017, bringing the number of customers down from 613,443 to 385,832. A 2017 Center for Health Statistics study found that roughly 53 percent of all West Virginia adults use wireless services exclusively, while another 10 percent use wireless services most of the time, with almost 22 percent of West Virginia adults still using landline services exclusively or most of the time. Frontier holds on to a larger percentage of customers than that with the sale of its rural DSL internet service.

Frontier heavily redacted the independent audit about its performance.

Frontier’s largest service problems result from its indefinite reliance on splicing damaged or degraded line pairs servicing individual customers. With fewer customers, the company has more choices of alternative line pairs it can use to restore service for customers affected by service interruptions. The audit found many line splices were decades old and often were responsible for eventual larger scale service outages, especially when repairs were inadequately completed exposing the entire cable to the elements. The audit also found no formal tree trimming operation was in place at the company, which meant trees inevitably overgrew into the company’s lines. In storms, trees can disrupt service by blowing into cables or even tearing wires off utility poles. The report also noted that technicians often drove around and spotted network defects and other problems likely to eventually cause service outages, but there was no formal reporting and mitigation strategy, which often left repairs delayed for months or years.

Frontier is also facing a talent flight, as network engineers that have serviced the lines since they were operated by Verizon are preparing to retire in large numbers. That could create even greater problems as inexperienced new technicians unfamiliar with the state of Frontier’s network gradually replace them.

Despite these problems, the auditors found Frontier was still earning a healthy amount of revenue in West Virginia. Oddly, that assertion was hotly disputed by Frontier itself, claiming that conclusion was “flatly wrong” and it had been losing money in the state every year since 2012.

“The auditors did not properly account for pensions, post-employment healthcare, and other benefits paid by Frontier nor for interest costs on the money Frontier borrowed to invest in West Virginia,” wrote Allison Ellis, Frontier’s senior vice president of regulatory affairs. “When those expenses are taken into account, it is clear that Frontier has invested more in the state than it has recouped.”

Auditors recommend that Frontier establish a more robust network engineering effort, aggressively repairing line issues before they become apparent to customers and improving its reporting systems to track service problems from start to finish. It also recommended increasing the amount of fiber in the network to reduce service issues and maintenance expenses and allow for better internet speeds. Finally, it recommends customers receive additional compensation for repeated service outages.

Crackpots Link 5G to COVID-19; Several Cell Towers Set on Fire in UK to Stop “Murder Vibrations”

(Image: Science Blogs)

A preacher in the United Kingdom told parishioners that the cell tower erected within sight of his church was transmitting 5G “murder vibrations” directly responsible for the country’s outbreak of the COVID-19 coronavirus. A Nigerian pastor told viewers the central government locked down two major cities in the country to secretly install 5G cell towers and warned other lock downs were coming soon to allow cell phone companies to install more towers. Woo incubator “Goop” has hatched more than a few 5G conspiracy theories, including contributor Habib Sadeghi’s claim that every pandemic over the last two centuries is directly caused by the “electrification of earth.” Singer M.I.A. suggests recovery from COVID-19 is being hampered by 5G radio waves which “confuse or slow the body down in healing process as body is learning to cope with new signals, wavelengths, frequencies, etc.” As the coronavirus crisis deepened across the United Kingdom, M.I.A. blasted the government for not forcing 5G services to shut down, pointing out she is not feeling well and “my symptoms match the 5G symptoms.”

For more than a year, conspiracy theories about the health effects of 5G wireless networks have grown. RT, the Russian state broadcaster, even called it the “5G Apocalypse.” On the other side of the political spectrum, conspiracy group Q-Anon, which believes entrenched politicians are conspiring within the “deep state” to sabotage the presidency of Donald Trump, claims 5G is a vital tool to lull people into complacency with mind control.

A Q-Anon supporter:

I am in disbelief that these people would risk extinction of the human race for a buck. But remember these people are evil. The power of 5G is scary. It will give them the ability to control all AI they will literally dictate your life, what MEDIA you are exposed to your privacy your health everything. But is 5G worth so much that someone would be willing to murder someone for it. How about hundreds. We know the Evil behind 911 possible to cover up the 200 trillion dollar military fraud meeting at the pentagon #Qanon #TheGreatAwakening @40_head

In reality, 5G is nothing more than an overhyped wireless technology upgrade that can either be slightly faster than existing 4G LTE networks, or considerably faster if adequate wireless spectrum is available for short distance communications. In either case, the energy emitted by traditional cell towers or small cells is infinitesimal compared to much stronger local TV and radio stations. In fact, the fastest 5G networks operate on millimeter wave frequencies that cannot penetrate walls and doors and are capable of reaching only a few blocks away at most.

As people shelter in their homes to avoid spreading the virus, newly available free time apparently triggered a few believers of 5G conspiracy theories. An unknown number took to the streets last weekend to set several cell towers in the United Kingdom on fire.

CNBC reports four Vodafone cell towers were attacked over the weekend, with a video widely circulated on the internet showing another cell tower owned by EE damaged by fire in Birmingham.

“This site served thousands of people in the Birmingham area, providing vital 2G, 3G and 4G connectivity as it has done for many years,” an EE spokesperson told CNBC. “We will try to restore full coverage as quickly as possible, but the damage caused by the fire is significant.”


London radio station LBC talks with a representative from FullFact, a non-profit independent fact-checker, to debunk claims that 5G signals are helping spread the coronavirus. (23:47)

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