This empty water tower in Madison, Wis. caught fire Friday as workers began painting preparations, disrupting wireless communications services on the city's west side for months. (Photo: WMTV Madison)

A water tower fire on Madison’s west side has wiped out WiMAX broadband service for at least 150 fixed wireless broadband customers, leaving them cut off for so long, provider TDS Telecom is canceling their service and assisting customers in switching providers.

A Madison utility manager said workers Friday were preparing to paint the 100,000-gallon tower in the 2700 block of Prairie Road when insulation around communications cables caught fire.  Smoke was visible from the empty water tower for miles, and several nearby homes had to be evacuated because of fears of a potential collapse.

City engineers have since deemed the tower safe, but the real impact will be several months of interrupted broadband and cell service from several area providers who depended on the tower as an antenna site.  The tower was particularly crucial to TDS Telecom, which depended on its strategic location to deliver its wireless broadband service in western Madison.  It will take several months to restore service.

“Based on our discussions with the City, we anticipate it could take a very long time to repair the damaged tower,” states DeAnne Boegli, TDS National Public Relations Manager. “Since this is the only viable tower location TDS can use to serve these homes, and because temporary solutions are not available, our customer’s best option is to select another facilities-based communications provider.”

TDS will assist all 147 impacted customers in changing their service without penalty and remove the equipment from customer homes at their request and convenience. The company is also providing the customers a month’s service credit.

“Unfortunately, this accident has left us with no reliable or timely restoration options. TDS understands communications services are critical to our customers and we want to get them transitioned as quickly as possible, even though it means they must select another provider,” said Boegli.

Affected cell phone companies are trying to establish temporary cell tower sites to improve service in the area while repairs get underway.

[flv]http://www.phillipdampier.com/video/WMTV Madison Water Tower Fire Wipes Out WiMAX 5-14-10.flv[/flv]

WMTV-TV in Madison broke into regular programming to deliver a special report on the fire.  We’ve also included some raw video of the fire.  (11 minutes)

One of the lesser-known implications of broadband reform includes major changes to the Universal Service Fund (USF), a program that collects a few dollars a month from every phone customer to help subsidize the costs of delivering service to rural America.  As traditional phone lines become ever less important, a proposal to begin applying USF charges to broadband service has gotten increasing attention from conservatives who oppose the program, calling it a new “tax on broadband.”

The need for USF subsidies on rural telephone service continues to decline along with the number of landline customers.  Over the history of the program, repeated abuses have been documented which have diverted funding into cell phones for school administrators, telecommunications services in decidedly non-poor or rural areas, and steering vendor contracts to providers that kick money, trips, or other gifts back to decision makers.  With the FCC increasing the USF subsidy rate to 15.3 percent for the second quarter of 2010, an enormous amount of money is at stake, available for qualified programs.

So much money is available, some companies are building USF funding into their business plans.  Independent rural telephone companies can make a killing on USF subsidies, which are targeted precisely at their service areas.  But now cell phone companies have begun riding the USF gravy train, and are now marketing products and services that would be impossible to provide without USF funding.

One of the most controversial programs is free cellphones for income-challenged Americans, a program that first appeared during the Bush Administration, made possible by the Universal Service Fund.

To qualify, subscribers must either have an income that is at or below 135% of the federal Poverty Guidelines, or participate in one of the following assistance programs:

• Medicaid,
• Food Stamps,
• Supplemental Security Income (SSI),
• Federal Public Housing Assistance (Section 8),
• Low-Income Home Energy Assistance Program (LIHEAP),
• Temporary Assistance to Needy Families (TANF), or
• The National School Lunch Program’s Free Lunch Program

An extension of Lifeline and Link-Up, the free cell phone program has been extended to more than a dozen states by providers like TracFone’s SafeLink Wireless or Sprint’s Assurance Wireless.

Safelink provides qualified customers with free ($50 value) Motorola cell phones and free calling with no contract requirement.  They also receive free texting, national/international calling, voicemail, caller ID, and call waiting.

“A telephone service, just in general, is not a privilege, it’s a right, and we feel it’s a corporate responsibility to provide it,” says José Fuentes, TracFone’s director of government relations. “Everyone should be in contact, should have the opportunity to get a phone call, especially if it’s an employer.”

Fuentes may be right, but TracFone’s altruism is made considerably easier when the federal government is picking up the majority of the tab every month.  USF funding contributes $10 of the estimated $13.50 the service actually costs to provide.

Traditional Lifeline landline service has been a part of American life for decades, but the prospect of welfare recipients getting free cell phones is ready-made for demagoguery in the media.  A common meme is that the program represents more “Obama socialism,” despite the fact the program began under the previous administration, and there may be nothing inherently wrong with extending Lifeline service to an increasingly wireless world.

What this really represents is the opportunity to consider different approaches to funding subsidy programs.  For example, would such programs like cell phone subsidies be better served if they were funded by the carriers themselves as part of spectrum auction proceeds?  Is the FCC trying to substantiate the need for continued USF spending by expanding the number of projects and programs qualified to receive funding?  Is 15.3 percent a fair amount to charge telephone ratepayers?

Under the FCC’s proposed Broadband Plan for America, USF fees would be collected from and largely diverted to broadband service.  Rural America would get broadband service at a price comparable to what big city residents pay, and providers could substantiate the return on investment to begin constructing such projects partly subsidized by USF funding.

But that means the price of your broadband service will increase and some consumers don’t like it.

[flv]http://www.phillipdampier.com/video/WLOS Asheville Broadband Tax 4-28-10.flv[/flv]

WLOS-TV in Asheville, North Carolina reports on concerns about a forthcoming proposed broadband tax.  (2 minutes)

[flv width=”451″ height=”260″]http://www.phillipdampier.com/video/WGRZ Buffalo Free Cell Phones On Your Dime 4-8-10.flv[/flv]

WGRZ-TV in Buffalo covers the free cell phone angle as residents see ads from companies like Assurance Wireless that offer free cell phones to income-challenged Americans. (2 minutes)

Time Warner Cable is convinced subscribers are confused about the enormous number of channels that occupy today’s cable dials.  With today’s rapid growth in HD channels, the cable company is introducing some dramatic channel realignments for its customers in the Carolinas.

Next month, customers in the Triangle will join Time Warner Cable’s Common Digital Lineup, a project to align channel assignments throughout the two states.  When complete, all digital channels will be located in the same place on the dial throughout the Carolinas.  The company is also switching to a theme-based channel lineup.  Each category will have its respective channels grouped together.  Among them: news, general entertainment, sports, children’s programming, music, and movies.

For those in the northeastern states, this doesn’t represent anything new for the cable company — Time Warner Cable systems in New York, for example, have grouped digital channels into categories for years.

But the Carolinas realignment does make it considerably easier to locate HD channels, which will be aligned with their standard definition counterparts.  For example, CNN will soon be found throughout the Carolinas on channel 400.  Finding CNN HD becomes effortless – just put a “1” in front of the channel number — 1400.  The Disney Channel is on channel 200.  Disney Channel HD is easy enough to find — it’s now on channel 1200.  Even local channels are easier to deal with.  In Greensboro, for example, WXII, the NBC affiliate, will be on channel 120 for standard definition viewing or channel 1120 for HD viewing.

Complete channel lineup guides for the Carolinas are available from Time Warner Cable’s website.

[flv width=”432″ height=”260″]http://www.phillipdampier.com/video/News 14 Carolina In Depth Melissa Buscher TWC digital lineup changes 3-2010.flv[/flv]

Time Warner Cable’s House Organ, News 14 Carolina, delivers plenty of airtime to spokeswoman Melissa Buscher, who gushes about the channel alignment changes completed in Charlotte this past March.  (3 minutes)

The new lineup will take effect for North Carolina customers on the following dates:

The new channel lineup will be grouped as follows:

• 100’s – Local Broadcasters & Local Programming
• 200’s – Kids & Family, Learning & Discovery, Faith & Inspiration
• 300’s – Entertainment, Home & Leisure, Shopping
• 400’s – News & Information, Music
• 500’s – Sports
• 600’s – Movies
• 700’s – Premiums, Pay-Per-View Events
• 800’s – International
• 900’s – Music Choice
• 1000’s – On Demand
• 1100 and above- High Definition

Meanwhile, a lot of other Time Warner customers would prefer to share their continued displeasure with Time Warner’s “new and improved” program guide and DVR configuration menus.  Mystro Navigator has mystified a large number of customers who can’t stand the software and don’t understand why Time Warner radically changed it in the first place.

One Raleigh customer complains the software upgrade turned his DVR’s fast forward and rewind buttons into mud.  The upgrade dropped the 4x fast forward option which rapidly scanned through recorded programming.  Fast forwarding through commercials has become a nightmare because the box automatically rewinds about 10-20 seconds behind the point where the customer stopped fast-forwarding.

Buffalo and Rochester, New York customers have also given the software a hostile reception.  Some customers in Buffalo have canceled Time Warner Cable over the upgrade and switched to Verizon FiOS. In Rochester, a few residents have noted it has become much more difficult to manage manual recordings or setting the DVR up to record series properly.  The most common complaints:

• No apparent “jump to end” in playback
• Fast forward and rewind are not accurate
• Finding shows by title is laborious at best
• Recording shows and series has become needlessly complex by the changed menu structure
• No apparent 4x fast forward and reverse
• Program descriptions are heavily truncated on DVR recordings
• Erasing and managing recorded shows often drops you out of the DVR menu
• DVR recording is not consistent
• Configuring Navigator to work with HD sets is confusing for the uninitiated
• Extremely sluggish channel changing, responsiveness

Dealing with Navigator and the Time Warner Cable remote control, especially in the dark, should be an Olympic event.  One Buffalo resident has thrown up his hands:

Time Warner reminds me of former Illinois Governor Rod Blagojevich. Both have severe technology handicaps. I watched the governor get fired on The Apprentice because he couldn’t use a cell phone or send an email or use the simplest technology.

Time Warner can’t seem to design a clicker that works. Mine has 63 buttons and looks like part of a 767 cockpit console. Hello? All I want is channel, volume and on/off.

The Time Warner remote doesn’t have a single on/off button — it has two – a ‘system’ and a “power” button. The engineer who designed that monstrosity should be dragged through the streets by a mob of angry senior citizens who must fumble with that thing every day.

Some tips have been circulating informally among Time Warner Cable engineers about how to deal with Navigator’s temperamental behavior:

Navigator Guide Data:

1. Newly installed or downloaded guides can take up to 24 hours for all seven days of guide data to populate. In many cases, new installs may only go out by three days until a full 24 hours have completed.
2. When Setting Up Series Recording for your first week with Navigator: (and even thereafter if you can help it) DO NOT DELETE SHOWS IN THE MIDDLE OF RECORDING THEM! Let Navigator do at least one complete recording of a series. If you need to delete a series, do it through the Series Manager, but before the recording starts. If you delete a series in the middle of recording it, Navigator will think it made an error, and will keep looking out for more episodes to record of that series.
3. Navigator needs to see AT LEAST ONE instance of a series for the populated guide data to be able to record it. Remember, under Record Series With Options you can set up on what channel(s) the series should record, the number of episodes to keep, and set series priorities.

[flv width=”480″ height=”340″]http://www.phillipdampier.com/video/Time Warner Cable Dealing with Navigator 5-2010.flv[/flv]

Time Warner Cable produced these two videos to assist Navigator customers trying to understand how to record programming or set up their televisions to properly display cable programming.  (3 minutes)

Phillip "Will Wait for it to Hit Netflix" Dampier

Hollywood studios have a proposition to make.

How would you like to gain access to the latest Hollywood releases on your cable, satellite, or broadband connection even while those movies are still playing in area theaters?

The Motion Picture Association of America says it’s willing to let you watch first-run Hollywood blockbusters from home, but in return, they want the right to control what you can do with your television set.

Time’s up for you to make up your mind.  The Federal Communications Commission has decided you were going to say “yes” to this proposition anyway, so they went ahead and approved it on your behalf.

Specifically, the MPAA appealed to the Federal Communications Commission to get approval for its proposed Selectable Output Control technology.  You probably never heard of that, but the concept actually has been around for a few years now.  When movie studios float trial balloons about enabling the technology, public interest and consumer groups start hollering and it typically gets shelved for awhile.  Not this time.

While the public policy debate continued, chances are the manufacturer of your television set or monitor manufactured after 2004 has probably already included some support for SOC — just waiting to hand over control of your television to Hollywood studios, cable, satellite, or IPTV companies.  On May 7th, while we were debating Net Neutrality, the FCC released its order approving the Hollywood Remote Control Confiscation Act (my name sounds far better than the FCC’s — Petition for Waiver of the Commission’s Prohibition on the Use of Selectable Output Control.)

Here’s how it works:

Let’s say your cable company wants to offer you Iron Man II through pay-per-view starting today.  It’s a movie currently playing in many theaters nationwide.  The MPAA believes there is compelling demand among the elderly, the home-bound, and the too-lazy-to-haul-themselves-to-the-Movieplex to make it available in the comfort of your own home on early pay per view.  However, Hollywood and your local cable company don’t want you making copies of the movie to hand out to all your friends.  With SOC technology, that becomes less of a problem because the cable company can selectively disable the outputs on the back of your television that don’t use copy control technology.  That means old fashioned analog outputs can be disabled for up to 90 days during SOC-enabled programming, making sure you cannot record any of the content without the approval of the studio or your cable company.

Is it worth losing control of your television to watch Iron Man 2 before it arrives on DVD?

Certain digital outputs will still function, as long as they support robust anti-recording/copying technology.  No more time-shifting SOC-protected content on digital video recorders to watch later, no more analog VCR taping of shows the industry doesn’t believe you have a right to record anyway.

For decades, Americans have fought for fair use rights that permit home recording and copying for personal use.  The entertainment industry has never fully accepted that, and have eroded away the ability for consumers to make legitimate personal use of content they have already purchased with digital rights management schemes, copy protection, region coding, and other limiting technologies.

SOC technology effectively forfeits all of your rights.  The only consumer protection the FCC provides is a requirement that your cable, satellite, or broadband provider warn you when they are employing SOC anti-recording technology.  At least you’ll know when your home recording rights are being trampled.

If your television set doesn’t have support for SOC built-in, the FCC just made your television set obsolete.  Write and thank them.  While initial deployment of SOC is only expected to be used for “early pay per view,” don’t believe for a moment such powerful controlling technology available to entertainment companies won’t be used in the future for other types of content they don’t want you recording.  Premium movie channels like HBO or Cinemax would be obvious examples.  TV networks that would like to sell you their network shows on DVD or through online services might find it worth their while to disable your ability to record your favorite shows.  If you don’t have an SOC-capable set, it’s likely you won’t be able to access protected programming at all.

With the ongoing convergence of broadband, television, and other forms of home entertainment distribution, SOC is a foot in the door to permit third parties to make decisions about how you can view or use content you’ve already paid to receive.  That’s a bad precedent.  The FCC approval of this gift to the entertainment industry is a travesty that needs to be reversed.

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/KCTV Kansas City FCC Ruling Could Bring New Movies Into Homes 5-16-10.flv[/flv]

KCTV-TV in Kansas City ignored the consumer’s loss of control over their own television set to focus instead on the implications for theater owners, who may become natural allies with consumers in opposition of SOC.  (1 minute)

[flv]http://www.phillipdampier.com/video/Public Knowledge – Selectable Output Control.flv[/flv]

Public Knowledge developed this web-ready video that takes a less formal look at SOC and its impact on your consumer rights.  (3 minutes)

West Virginia residents are assured of an indefinite future with 1-3Mbps usage-capped “broadband” as Frontier won conditional approval of its plan to assume control of the majority of the state’s landlines.

Frontier Communications, the phone company with the 5 gigabyte monthly acceptable usage allowance, won approval from West Virginia’s Public Service Commission after nearly a year of opposition from several unions and consumer advocacy groups.  The opposition, led by the Communications Workers of America, charged that Frontier’s balance sheet made it impossible for the company to fulfill promises to deliver quality phone and broadband service to the majority of the state’s residents.  Consumer groups, including Stop the Cap!, argued Frontier’s DSL broadband service is inadequate for the state’s needs, because it typically only provides 1-3Mbps speed and is usage-limited for residential customers.

Verizon’s history of bad service in the state helped drive some to believe Frontier can do better

Verizon’s West Virginia division has frequently achieved a poor rating among many West Virginians upset with the company’s service record and broadband deployment.  Last Monday, the PSC announced that Verizon’s service in the state was so poor, it ordered the company to place $72.4 million in an irrevocable escrow account to be used to improve the quality of service.  The PSC found Verizon’s disinterest in delivering service in West Virginia had resulted in the deterioration of Verizon’s essential infrastructure.

The PSC-ordered escrow account will be used to maintain and improve everything from restoring copper wiring to vegetation control and pole replacement.

With a history of complaints like that, it comes as no surprise West Virginians are ready to wave goodbye to Verizon, hoping for better times with Frontier Communications.

Bray Cary

Bray Cary, a TV station owner in West Virginia, has hosted editorials on his network of local stations across the state promoting the transaction, believing it will bring a better future for the state’s telecommunications needs.  Just two weeks ago, he demanded the PSC make a decision on the proposed merger, claiming the state needs a “modern, cutting edge communication system that will bring high-speed Internet to every corner of this state.”  Unfortunately for Cary, there is nothing from Frontier that comes close to “cutting edge,” with the exception of the company’s brazen Internet Overcharging scheme now being tested in Minnesota that threatens to bring $250 monthly broadband bills to some residents.

[flv]http://www.phillipdampier.com/video/WOWK Charleston State Must Act on Verizon-Frontier Deal 5-4-10.flv[/flv]

WOWK-TV’s Bray Cary criticized the West Virginia Public Service Commission for stalling on a decision to move forward the Verizon-Frontier landline transfer in the state.  Just about ten days later, the PSC conditionally approved the deal.  [Video problems were a part of the original clip] (Aired: May 4, 2010 — 1 minute)

Frontier specializes in delivering slow-speed DSL service to most of its rural service areas, usually less than 3Mbps in speed.  Even in its largest service area, Rochester, N.Y., the company’s broadband options are an also-ran against the far faster and more reliable cable modem service from Time Warner Cable, which also beats Frontier’s out-the-door price.

Unfortunately, West Virginian media has never given important details to residents about the specific services Frontier is willing and able to offer residential customers.  It also never informed customers about the important limitations the company attaches to its “high speed Internet” Cary hopes to see available in every corner of the state.

Sometimes change for change’s sake is not an improvement.

The PSC attaches conditions to its approval

The Commission did not grant blanket approval to the transaction.  The PSC is requiring that Frontier:

• Honors all existing obligations of Verizon following the close of the sale, including the currently effective Retail Quality Service Plan approved by the Commission to continue through at least July 2, 2011.
• Makes capital investments in Verizon of $30 million during the second half of 2010, $75 million in 2011 (including $12 million targeted at service quality), $63 million in 2012 and $63 million in 2013.
• Makes additional capital investments of at least $48 million to increase broadband deployment and subscription in the Verizon service territory.
• Expands broadband availability in Verizon service areas so that by no later than the end of the fourth year following the close of the sale, access to broadband service will be available to no less than 85 percent of the households within Verizon service areas.
• Locates its Southeast regional headquarters in Charleston, WV, after closing the sale. Charleston will be Frontier’s Southeastern regional headquarters, and will be a major employment center for Frontier in the region. It will be the hub for engineering, technical, operation and executive personnel for Frontier’s operations in West Virginia, Tennessee, North Carolina, South Carolina, Mississippi, Alabama, Georgia and Florida.
• Adopts all of Verizon’s tariffs, price lists and contracts, including long distance, under the same terms and conditions at closing.
• Caps all regulated rates subject to jurisdiction of the Commission for one year after close of the transaction.
• Provides E-911 functionality provided by Verizon prior to close.
• Waives early termination fees for current Verizon customers participating in a Verizon bundled service package for the first 90 days after closing.

Reactions from all over

“We’re pleased the commission has approved the transaction. The record developed in this case provides comprehensive evidence and assurances that the transaction with Frontier Communications is in the public interest and will provide many benefits to West Virginia residents, including increased investment and broadband availability in the state, while protecting jobs and promoting employment.”

— Verizon-West Virginia President B. Keith Fulton

“We’re in the process of evaluating the order. After full review we’ll look at what we can do that will best serve West Virginia consumers and CWA members. Of course, we’re disappointed but we’re heartened by the fact that at least one person on the three-member commission agreed with us and more than 80 legislators, several county commissions and a broad coalition of consumer, union and first responder organizations that this deal is too risky and not in the public’s interest. The split decision shows our arguments about the deal had validity.”

— Communications Workers of America, District 2 Vice President Ron Collins

Byron L. Harris heads the Consumer Advocate Division of the West Virginia Public Service Commission

“There are many areas of West Virginia that will always be dependent on landlines, absent some sea of change in technology. Those are the people I’m most concerned about. They’re the truly captive customers of now Verizon and, in the future, Frontier.”

— West Virginia Public Service Commission’s consumer advocate Byron Harris

“We’ve seen how Wall Street’s investments can backfire. Like Frontier today, Wall Street once put its confidence in Global Crossing and that led to a disastrous bankruptcy. We’re concerned that the Rochester-area and other existing Frontier properties may be starved to fund this expansion.”

— John Pusloskie, President of CWA Local 1170 in Rochester, N.Y.

“Today’s approval is a welcome and important step. Our goal is to gain the approval of the FCC so that we can close the transaction and begin bringing its benefits to consumers and businesses.”

— Maggie Wilderotter, Chairman and Chief Executive Officer of Frontier

West Virginian media covers the conditional approval

A handful of television stations covered the conditional approval, most without much depth.  West Virginian newspapers covered the fight between Verizon and Frontier and the unions and consumer groups, but no paper really provided in-depth coverage into the challenges of West Virginia broadband and what precisely Frontier is capable of providing to solve it.  Consumers will discover soon enough that West Virginia has yet again gotten the short end of the online stick.  Only this time, they better not wave it around too much — it might exceed your monthly stick-waving allowance.

[flv width=”500″ height=”395″]http://www.phillipdampier.com/video/WOWK Charleston Union – Verizon-Frontier Deal Bad for W.Va., Verizon Responds 5-14-10.flv[/flv]

WOWK-TV in Charleston delivered the most substantial report on the sale, including this brief interview with PSC spokeswoman Sarah Robertson.  (2 minutes)

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WTAP-TV in Parkersburg ran this brief in-studio report about the Verizon-Frontier approval.  (1 minute)

[flv]http://www.phillipdampier.com/video/WDTV Bridgeport Verizon Sells Land Lines to Frontier 5-14-10.mp4[/flv]

WDTV-TV in Bridgeport explained the requirements of the conditional approval.  This was the only report on the approval that included the opposition’s perspective.  (1 minute)