When Verizon Wireless finally fired up its network in Alaska in September of 2014, the writing was on the wall for at least one of Alaska’s homegrown wireless competitors.

Faced with competing against Verizon’s $115 million, state-of-the-art advanced LTE network that already supports new features like Voice over LTE (far ahead of what many customers in the lower 48 states get) Alaska Communications System Group, Inc., decided it was time to sell.

An ACS and GCI-shared cell tower. (Photo: Rosemarie Alexander)

ACS’ 109,000 wireless customers won’t be going far. The buyer, General Communications, Inc., (GCI) is a co-investor in the Alaska Wireless Network that ACS also relies on to offer wireless service. Besides billing and rate plans, most ACS customers won’t notice much of a change after the $300 million sale is complete during the first quarter of this year. GCI will end up with about 253,000 customers after the transaction is finished, which represents about one-third of the Alaskan wireless marketplace. The sale will mean most Alaskans will have a practical choice of three major wireless carriers — AT&T, Verizon Wireless, and GCI.

ACS, weighed down by debt, wanted out of the wireless business because it has proven expensive to support a network serving a high-cost, low margin state like Alaska, where small communities are often far apart. Serving cities like Fairbanks and Juneau is one thing. Serving hundreds of settlements like Meyers Chuck (pop. 21) or towns like Unalakleet (pop. 688) is another.

Like many traditional rural or independent telephone companies, ACS sees gold in its future focusing on selling lucrative broadband service to residential and business customers, where profit margins often exceed 50 percent. There is plenty of room to grow if ACS invests in network upgrades. ACS currently only has a 20 percent share of Alaska’s broadband market, primarily selling DSL service. GCI, which sells cable broadband, has managed a speed advantage.

Both companies have reassured Wall Street that despite ACS’ renewed focus on broadband, there will be no fierce competition, no price wars, or lower prices for consumers. ACS will devote considerable resources into bolstering its business broadband marketing and has already secured contracts with the state government and a regional health consortium.

Despite the $300 million windfall, ACS plans to turn most of that money towards paying off its debts and possibly reinstating a dividend payout program for shareholders. The company is expected to only spend $35 million to $40 million annually on capital investment projects and executives promise they will only open their wallet for projects that guarantee a high return on that investment. As a result, ACS will likely not spend much on rural broadband expansion.

Lily Tomlin as Ernestine the telephone operator.

The Federal Communications Commission has mildly beefed up its largely toothless cable complaint hotline with a brand new consumer online complaint center that guarantees to forward submitted angergrams back to your telephone or cable company within one business day.

As Congress largely deregulated cable and competing local telephone exchange carriers and put them out of reach of most federal and state oversight, the FCC has largely been left acting as a concierge – managing and forwarding consumer complaints received on its 1-888-CALL-FCC hotline. Now it has an online complaint center to keep the toll-free number company.

The new FCC website is a one-stop place to file complaints about cable, phone, and other telecom companies and has been simplified to make it easier to understand – a welcome change from the nearly impenetrable Electronic Comment Filing System that dates back to the Clinton Administration.

But in reality, there isn’t much the FCC can actually do to enforce any action in your favor. So if your complaint deals with any of these issues, it is technically outside of the FCC’s jurisdiction:

• Burial of telephone or cable wires
• No dial tone to local phone service
• Stand-alone satellite TV billing, rates and programming
• Installation of non-bundled service
• Stand-alone cable TV service, rates and programming (not including basic tier)
• Internet services, rates, and billing

Despite the limitations, most cable and telephone companies assign executive-level customer service agents and supervisors to manage complaints forwarded from state or federal regulators that could give them headaches later on. That will get you a more empowered representative that can make things happen that “Miss Raisin” in the provider’s Philippines-based call center cannot.

The FCC also gets to track and monitor both the complaints received from consumers and the response from your provider. That can help the FCC identify hot-button issues that need more attention and uncover bad actors that might need special scrutiny, especially if those companies later seek approval for their merger deal or have other business before the FCC.

So far, the largest number of complaints received are about relentless telemarketing robocalls. Since telemarketers have discovered the Federal Trade Commission’s Do Not Call Registry and accompanying enforcement is more “bark” than actual “bite,” an increasing number are ignoring the law with little or no consequences.

The FCC’s disclaimer on such matters does not exactly leave providers quaking in their boots:

We do not resolve individual complaints on these issues. However, the collective data we receive helps us keep a pulse on what consumers are experiencing, may lead to investigations and serves as a deterrent to the companies we regulate.

Comcast Internet-only customers looking for speeds up to 100Mbps will pay Comcast an unprecedented $88.95 a month for a package containing the company’s Blast! broadband service with a rented cable modem.

The company has begun informing subscribers of the first of its 2015 rate increases that took effect in some areas on Jan. 1.

“We have worked very hard to hold down price adjustments, and there are no price changes for our Limited Basic ($16.10), Digital Preferred ($85.90) or Internet Essentials ($9.95) services,” said Bob Grove, Comcast’s vice president of public relations. “While we continue making investments in our network and technology to give customers more for their money, including more video across platforms, better experiences like X1 and faster Internet service, we periodically need to adjust prices due to increases we incur in programming, business costs and new technology. On average, nationally, the customer bill will increase by 3.4 percent.”

Some will pay more than others. Here is a sample:

• Customers with DVR service face a $2 rate hike for the monthly DVR service charge, which now stands at $10 a month;
• Digital Premier, which includes an assortment of premium movie channels, is rising from $131.75 to $140.35;
• The hourly service charge for service calls is increasing from $33.80 to $35.80;
• Each extra cable outlet in your home will cost a one time service fee of $33.20, up from $32.75;
• Any pre-existing outlet in your home will now be charged a one time activation fee of $22.95, up from $22.05;
• Service upgrades that require an in-home visit will be charged $28.45, an increase from $26.30;
• The in-home wiring service protection plan that covers you in case of an inside cable wiring or service deterioration problem will see a price increase of $1 to $4.95 a month. Customers without the plan will now pay $35.80 an hour for service calls.

Cable television customers face an increase of more than 100% for the company’s Broadcast TV surcharge introduced in 2013. In most areas, the fee is rising from $1.50 per month to $3.25. A previously announced $2 increase in modem rental charges will raise the cost of using Comcast-supplied equipment including Comcast’s Gateway to $10 a month.

Comcast is also introducing a new compulsory regional sports network surcharge of $1 a month for all XFINITY TV packages starting with Digital Starter and higher tiers and XFINITY 450 Latino.

Customers with analog-only televisions using a DTA converter box to handle digital cable television channels on these older sets face an even more dramatic price hike. Customers that used to pay as little as $0.50 for Digital Adapter Additional Outlet Service will now pay $2.99 a month.

Premium channels such as HBO have seen price reductions, possibly in response to declining subscriber numbers. HBO drops to $15 a month and all other premiums decrease to $12 a month.

Comcast customers looking for the biggest bang for their buck should consider bundled service packages which discount Internet, television, and telephone service. Current customers should also consider letting Comcast know they are shopping the competition for a better deal. Ask them to lower your rates if they want you to stay.

That is DISH’s CEO banging the drum beside a panoply of kangaroos. (Image courtesy: Gizmodo)

The ultra high-definition, bandwidth chewing 4K television standard has arrived and like HDTV before it, the first place most Americans will get to sample the new standard is over satellite television.

DISH Network is planning to introduce HDMI/HDCP 4K television owners to its new 4K Joey this year — a souped-up set-top box that can handle the high demands of 4K video.

DISH is using a Broadcom dual-core chipset and 7448 ARM processor that can handle the next standard in high-definition viewing.

While DISH set-top boxes will be ready for 4K, many cable and DSL broadband networks in the United States will face difficulties handling the online video demands that 4K video will place on their networks. In tests, watching an average movie required a minimum of a maxed out 10Mbps broadband connection. Live programming, particularly sports, required considerably more broadband speed to keep up. Few DSL networks will be able to sustain more than a handful of customers attempting to stream 4K video before neighborhood nodes become overwhelmed. Even the DOCSIS cable broadband standard still relies on shared bandwidth, and a few video aficionados in the neighborhood could pose significant challenges and speed slowdowns for other customers in the area.

Besides satellite, only fiber optic broadband will be ready to handle the practical requirements of streaming 4K video without significant upgrades.

DISH’s plans to stream video content over the Internet could one day also include 4K programming, but viewers are likely to run smack into usage caps and usage billing that ISPs are using to deter online video from gutting cable television revenue as well as further monetizing already highly profitable broadband.

Downloading just three 4K movies consumed 90GB and took more than a day to download, even with Comcast’s 100Mbps broadband service. In usage-capped markets, fewer than a dozen 4K movies would eat your entire monthly allowance. Each additional movie would subject Comcast customers to overlimit fees averaging around $6 per title.

Although DISH will offer a set-top box to handle 4K viewing, content producers are still waiting to see whether the public embraces the next HD standard before investing heavily in programming delivered using the new standard. DISH would only promise content from “several providers” would be forthcoming by the time the 4K Joey is released during the second quarter.

Comcast has added a prominent warning to the Internet sales pitches on their website:

“An XFINITY Internet Data Usage Plan may apply,” appears when visitors click the “Learn More” button under each Internet offer.

In the past, Comcast notified affected customers on a regional level based on the locations where usage billing trials are underway. Now the disclaimer is prominently visible for every Comcast customer nationwide.

For now, these trials still apply only to XFINITY Internet customers in Huntsville and Mobile, Alabama; Tucson, Arizona; Atlanta, Augusta and Savannah, Georgia; Central Kentucky; Maine; Jackson, Mississippi; Knoxville, Nashville and Memphis, Tennessee; and Charleston, South Carolina.

In all trial markets except Tucson, the usage allowance included with all XFINITY Internet tiers is 300GB per month. The overlimit fee is $10 for each 50GB used above the usage cap.

In the Tucson, Arizona market, the usage allowance included with Economy Plus through Performance Internet tiers is 300GB. Those customers subscribed to the Blast! Internet tier have received an increase in their data usage plan to 350GB; Extreme 50 customers have received an increase to 450GB; Extreme 105 customers have received an increase to 600GB. The overlimit fee remains the same — $10 for each block of 50GB used above your allowance.