After months of negotiations, it all came down to a matter of control.

Softbank Group Corp., owner of Sprint Corp., has abandoned a long-expected merger between Sprint and Deutsche Telekom’s T-Mobile USA, citing concerns about which company would have effective control of the combined wireless carrier.

At the 11th hour, Softbank’s board of directors in Japan expressed concern the merger would leave Deutsche Telekom with majority control of Sprint’s assets and network, leaving Softbank effectively out of the U.S. market at a time when companies like Sprint and T-Mobile are preparing for the future launch of 5G wireless networks that will likely be a backbone for the future multi-billion dollar Internet of Things (IoT) marketplace. Multiple sources have told both Japanese and American newspapers that SoftBank’s founder and CEO Masayoshi Son had always been reluctant to give up control of Sprint, but had not made the issue a potential deal breaker until the talks were nearly complete and final decisions had to be made.

Deutsche Telekom considered the issue practically non-negotiable, because the international telecommunications company has relied heavily on the financial performance of T-Mobile USA to brighten its financial reports. Deutsche Telekom subsidiaries in Europe have struggled financially as a result of competition and other factors and international accounting rules require DT to have control of assets it wishes to include in its financial reports. Had T-Mobile ceded control of the merged company to Softbank, it could not include its U.S. business in its financial reports.

T-Mobile USA is regarded as the stronger of the two companies, and its German parent is very happy with its U.S. subsidiary. Most analysts argue Sprint needs the merger with T-Mobile far more than T-Mobile needs Sprint, so there was reportedly little disappointment from Deutsche Telekom over the merger talks achieving an impasse. To calm nervous investors, Softbank plans to announce it will step up its investment in Sprint to improve its network and coverage. Sprint customers have heard such promises before, but the fourth largest wireless carrier has continued to lose market share, mostly to the benefit of T-Mobile. Independent tests have shown Sprint’s network often performs worse than its three major competitors in many areas.

Hoitenga

In what must be a new speed record, Michigan’s Republican state Representative Michele Hoitenga introduced and then effectively pulled support for her bill that would have banned community broadband initiatives across the state.

Introduced Oct. 12, the bill succinctly banned any use of public funds to construct a municipal internet alternative to the phone and cable companies. The bill came under immediate criticism for its content and accuracy, erroneously transposing speeds of a “qualified internet service” as one offering at least 10Mbps upload speed and 1Mbps download speed.

In an effort to keep things ‘organized,’ Charter Communications is ‘normalizing’ rates in its acquired service areas to match amounts paid by legacy Charter Communications customers for years. Charter will not lose any money from this process, effectively “rounding up” the rates it charges, causing bill shock for some former customers of Bright House Networks enrolled in grandfathered and/or promotional pricing plans.

Harry Johnson, who has been a Bright House customer in Florida for over 20 years, was unpleasantly surprised when he was notified in a letter his rates were going up approximately $20 a month.

“Charter wrote me telling me my promotion was expiring and they were raising my rates, except I am not on a promotion and have been paying the same price for internet service for a few years now,” Johnson tells Stop the Cap! “It was either the longest promotion ever or Charter was lying.”

Johnson was paying around $45 for his Bright House internet plan. Effective this month, he is being asked to pay $65 — a $20 increase.

“After they refused to negotiate or give me even a semblance of an explanation that made sense, I told them they just lost a multi-decade customer,” Johnson said, signing up for Frontier FiOS instead. “It is amazing to me just how nonsensical these giant cable companies are sending letters like that and then be non-responsive to complaining customers, hoping we will just swallow it.”

In a letter sent by Charter to a subscriber in Texas, signed by Sam Araji, Charter’s vice president of billing, the cable company explains the customer was enrolled in promotion that was now ending and billing would continue at standard rates.

(Courtesy: ‘etaadmin’)

A DSL Reports reader encountered almost the same situation when he discovered his internet bill was $20 higher than the month before.

“I found this curious because I wasn’t on any promotional offering and just have internet only service,” wrote ‘Chuch.’ “When I called customer service, I was told that I was under an old Bright House plan and that Spectrum was adjusting pricing to be more ‘in-line’ with their national plans and that she wasn’t going to budge on the price, even though I was never under a promotion. All I got from her was lip service about how I should be paying more for the same service I’ve had for some time, even though there have been no service improvements over that time.”

Like Johnson, ‘Chuch’ is dropping his Charter Spectrum service and switching to Frontier FiOS.

Former Bright House customers in Florida have been hit twice with rate hikes, first in March when some customers saw their bills literally double. Charter admitted it would raise rates for the majority of customers $20-30 a month this year alone.

WFTS in Tampa reported some customers in the Tampa area saw their bills double after Charter/Spectrum took over from Bright House. (3:21)

Rep. Michele Hoitenga (R-Manton) doesn’t care much for community broadband, so she introduced a bill in the Michigan legislature that is as stark as it is short:

House Bill 5099:

The bill is remarkable for its brevity — most proposed community broadband ban bills avoid outright bans, preferring to use forced complicated referendums or operational limitations that usually make municipal broadband projects untenable. But Rep. Hoitenga’s bill leaves no doubt she wants private cable and phone companies left unmolested by publicly funded alternatives. Although the Michigan Republican chairs the House’s Communications and Technology committee, she appears confused about the difference between upload and download speeds. Her bill would define a “qualified” internet service as one offering at least 1/10Mbps service. Yes — 1Mbps download speed and 10Mbps upload speed.

Ars Technica’s Jon Brodkin asked Rep. Hoitenga about the oddity of the language in her bill:

When asked about this on Twitter, Hoitenga said she would have to “speak with the attorneys who wrote the bill” to determine whether the listed speed was a mistake. “I will speak with the attorneys who wrote the bill. They changed the language I submitted but will ask why they changed it,” Hoitenga wrote.

Rep. Hoitenga

Rep. Hoitenga used her Twitter account to promote and defend her bill, pointing out the district she represents had “37 providers” to choose from — a fact she gleaned from an online AT&T Yellow Pages directory. Stop the Cap! investigated that claim and found the majority of the providers cited did not offer internet access to members of her district, provided service only in adjacent communities, or sold commercial internet services to businesses only. In fact, for the overwhelming majority of her constituents, there are only two providers to choose from — AT&T or Comcast. Both are top donors to Rep. Hoitenga’s campaign, but more on that later.

Michigan has never been a hotbed of community broadband initiatives, despite having uneven broadband service in suburban and rural areas across the state. Michigan law already includes several significant roadblocks for public broadband projects, notes Lisa Gonzalez from the Institute for Local Self-Reliance:

“Michigan already has a significant state barrier in place; municipalities that wish to improve connectivity must first appeal to the private sector and can only invest in a network if they receive fewer than three qualifying bids. If a local community then goes on to build a publicly owned network, they must comply with the terms of the RFP, even though terms for a private sector vendor may not be ideal for a public entity.

“Nevertheless, several communities in Michigan have dealt with the restrictions in recent years as a way to ameliorate poor connectivity. They’ve come to realize that their local economies and the livelihood of their towns depend on improving Internet access for businesses, institutions, and residents.”

Although Rep. Hoitenga’s bill offers the possibility for “public-private” partnerships, her bill would bring a significant chilling effect because the proposed law fails to define how such partnerships should be structured.

Rep. Hoitenga told Stop the Cap! the bill would put a stop to tax dollars being spent on broadband service, something she felt was unwarranted. We asked the Michigan representative, “Did you know the phone and cable companies receive taxpayer subsidies already in the form of PILOT agreements, and other incentives?” which received the non-sequitur response that her office’s phones were ringing constantly with callers praising her new bill.

But that isn’t what Rep. Hoitenga told her Facebook fans.

“Many individuals have reached out to my office in regards to HB5099; with the belief that I am attempting to limit broadband expansion,” Hoitenga wrote. “This could not be further from the truth. One of my main goals as the Chair of the House Communications and Technology committee is to make internet access more easily obtainable. This legislation does indeed prevent cities from using tax dollars to subsidize ISPs; especially without a vote of the people. While at first glance government operated networks may sound like a good idea, the argument in support of them crumbles with an in depth look into the financial and long-term investment side of implementing such a network.”

So we remain unsure if the wave of phone calls Hoitenga referenced were in support of her proposed bill or opposed to it. Either way, the Michigan representative mischaracterized her own three-paragraph bill by claiming it would prevent cities from using tax dollars for internet service, “without a vote of the people.” But no provision for such a vote exists or would be allowed by her existing bill. Hoitenga’s bill also clearly makes internet access less obtainable, especially in communities where a for profit provider does not exist and a community is seeking to provide an alternative.

Hoitenga later states communities may not need to worry about internet accessibility because, “there is also a package of bills in the senate regarding Small Cell Technology (which also attempts to reduce barriers),” she wrote. That provision is backed by AT&T, which is currently one of the two ISPs serving her district.

She then picks up familiar talking points distributed by public broadband opponents:

“There are examples throughout the state and nation of taxpayers being on the hook for failed networks. There is also concern that some of these networks are in towns where employee pensions are severely underfunded, causing layoffs and cutting services, yet there seems to be money for high risk broadband investments. It’s time to address these issues.

She also cited a 2017 study critical of municipal broadband networks authored by University of Pennsylvania Law School Professor Christopher Yoo and co-author Timothy Pfenninger. Neither author or Rep. Hoitenga disclosed the group that produced the study is funded by AT&T and Comcast, among other large telecom companies and their respective lobbying organizations.

After opening a dialogue with the Michigan representative, she did not take kindly to questions or criticism about her bill, and summarily blocked Stop the Cap! from seeing her Tweets or communicating with her further — the first time anyone has blocked our group on Twitter. Shortly after that, she changed her Twitter channel to be viewable by invitation only, limiting her potential audience to her 284 current followers. At the moment, the only social media outlet that seems to be still open to communicating with Rep. Hoitenga is Facebook, where she is taking heat from her constituents about her bill.

The Michigan representative has been behind several controversial bills introduced in the current session of the Michigan House, including a proposal to allow concealed pistols to be carried in public and a ban on Sharia law being practiced in the United States.

Her top donors for the current legislative session include:

#2 – Telecommunications Association of Michigan PAC, $3,000
#4 – AT&T Michigan, $1,500
#11 – Comcast Corp. & NBC Universal, $500

4GCommunity.org, a non-profit provider of unlimited 4G LTE wireless internet service, is ending the service by Nov. 30, 2017 for “circumstances beyond the organization’s control.”

The service cost $250 for the first year, which included a mobile hotspot device, and $168 each year thereafter, which means many subscribers that started in the past year may lose some or all of their annual fee as the service closes down.

The company e-mailed its members this morning:

Dear 4GCommunity.org Members,

We are saddened to inform you that due to circumstances beyond the organization’s control the Internet connectivity benefit of membership will be ceasing no later than November 30, 2017. It may be sooner, so please begin looking for other Internet connectivity options right away.

The member online support center will remain a resource through this time next year. Member and support team volunteers will be providing their general assistance through the online support center to assist with questions about basic home computing, networking, and related technologies. It can be accessed through the Support Center page of the website, or directly at: https://4gcommunityorg.happyfox.com/

Respectfully yours,

Support Team

Sprint was 4GCommunity’s 4G service provider, and was potentially not enthusiastic about the partnership.

4GCommunity.org is one of several non-profit groups that have taken advantage of an agreement made years earlier with Clearwire, a company acquired by Sprint in 2013.

Non-profit groups offering inexpensive 4G wireless internet service are exploiting a loophole in a 2006 contract agreement between Clear (now owned by Sprint) and Educational Broadband Service licensees.

In 2006, Clearwire reached an agreement to lease wireless spectrum earmarked for Educational Broadband Service (EBS) providers including Mobile Citizen and Mobile Beacon. In return for the use of those frequencies, Clearwire agreed to sell wireless internet service on its WiMAX network at rock bottom prices to those two providers, their non-profit affiliates and dues-paying members. As a result, more than 1,800 nonprofits, 429 schools, and 61 libraries signed up for service at prices averaging $10 a month. A few of those non-profits creatively exploited a loophole in the agreement which guaranteed access “as long as you are a user, recipient or beneficiary of a non-profit programs or services, but not thereafter.” That provision was interpreted to mean non-profit groups attached to either Mobile Citizen or Mobile Beacon could resell the service to their own members.

A groups have turned up, including 4GCommunity.org, typically offer access to unlimited 4G LTE data on Sprint’s network for an annual fee. 4GConnection effectively charged only $14 a month after the first year. The service has been especially popular with those within Sprint coverage areas, but outside of range for DSL or cable broadband. It also attracted a large number of RV owners and frequent travelers looking for portable internet access.

Sprint and other wireless companies have had experience with all kinds of resellers before. Historically, many of those providers offering unlimited data have been suddenly notified their contract to resell service was canceled or modified, usually after the carrier discovered a surge in traffic and usage it did not originally expect.

4GCommunity did not reveal the specific reasons for the decision to cancel its internet offering, but does suggest the termination is connected to Sprint. The decision is causing customers to scramble to find a new service provider. Selling low-cost internet plans that depend on one of the four major carriers has proven a risky business for providers and customers, because a carrier can put a provider under just by canceling a service agreement.

4GCommunity obviously understood the risks of having their provider drop them, placing this warning (emphasis theirs) in their service agreement:

You understand your support and membership in the organization is not a guarantee of any particular benefit for any duration of time.  You understand you are supporting an organization mission.  You understand we reserve the right to cancel any Internet connectivity Service as a member benefit at any time without notice, for any reason.  You understand that your membership charges may not be refunded or prorated if the Internet connectivity benefit is terminated or modified regardless of reason at any time.   

Customers may be less forgiving, especially if they recently paid several hundred dollars for a year of service that may not be refunded.

Similar resellers still appear to be offering service, but potential customers should be cautious and not assume other service provision contracts won’t be similarly canceled. A customer could be out up to $679 if a service later disappears.

• Calyx Institute – Membership costs $500 the first year, which includes wireless mobile hotspot service. The renewal rate is $400.
• Freedata.io – First year prices range from $449 – $679 for three different tiers of service offering different hotspot devices (currently showing as out of stock) and different options to access 3G service, which can be more reliable in rural/fringe reception areas. The service has also been battling with its small business payment processors, which suggests this is a very small operation.
• PCs for People & Connectall.org – Provide service to those below the 200% poverty level or currently enrolled in an income-based government assistance program. Proof of income required.

One of the few remaining unlimited wireless data providers unlikely to be affected by these developments is Unlimitedville, which offers a variety of expensive plans that correspond to the carrier providing the service. The “Yellow” plan, powered by Sprint, is $99 a month. The “Pink” plan, powered by T-Mobile, is $149 a month. A “Blue” plan offering service from AT&T costs $199 a month, and a “Red” plan using Verizon’s network is $249 a month. All of the plans are free of caps and speed throttles and offer 4G LTE data without hotspot restrictions, but require a one-time $99 “membership fee.”