Home » Editorial & Site News » Recent Articles:

Largely Pointless ‘Radio Shack Mobile’ Simply Resells Cricket Service, Where Available

Phillip Dampier September 5, 2012 Competition, Consumer News, Cricket, Editorial & Site News, Wireless Broadband Comments Off on Largely Pointless ‘Radio Shack Mobile’ Simply Resells Cricket Service, Where Available

Another face in the crowd.

For customers uncomfortable being seen anywhere near a Cricket store, Radio Shack’s No-Contract Wireless may be just what you were waiting for.

The electronics chain today unveils two Cricket-powered mobile phones as part of their new “no-contract” prepaid wireless offering.

  • The Huawei Mercury Ice is exclusive to RadioShack for the next 30 days and appears to be a slight makeover of the original Huawei Mercury… in white. For $149.99, the Android 2.3 phone is powered by a 1.4 GHz processor, a scratch-resistant 4-inch FWVGA screen and 8MP camera. With Muve Music® included in the $50 a month unlimited data plan, the phone delivers unlimited song downloads, ringtones and ringback tones.
  • The $39.99 Huawei Pillar feature phone works with plans that start at $25 a month, includes a QWERTY keyboard, camera, and rudimentary mobile Web access.

Cricket’s own cell coverage is more limited than most carriers, and an extensive roaming agreement with Sprint covers the rest of the country where Sprint provides service. If Sprint does not cut it in your area, Cricket will not either. Cricket emphasizes its home coverage in urban and near-suburban areas and across major highways. Their rural coverage is extremely lacking.

Once you reach the specific data limit, Cricket throttles your connection speed to something comparable to dial-up.

Plan Details1 $25/mo. Feature $35/mo.Feature $50/mo.Smartphone $60/mo.Smartphone
Voice Minutes/Mo. 300 1,000 Unlimited Unlimited
Unlimited Text * * * *
Additional Calling Features2 * * * *
Unlimited Multimedia Text * * * *
Unlimited Music with Muve Music * *
Unlimited Web/Data * * * (1GB) * (2.5GB)
Tethering  N/A  N/A  N/A *
1 All monthly service plans include Voicemail and Caller ID. (*-feature included)
2 Additional Calling Features include: Call Waiting and 3-way calling.

Unfortunately, Radio Shack does not bring anything new to the deal except additional retail stores where customers can buy phones and activate the service. Cricket customers can choose these plans and a wider array of phones directly from Cricket, its website or one of its authorized dealers or resellers. But if your nearest Cricket store is in a sketchy neighborhood or you don’t want your friends to catch you walking out of one, Radio Shack offers a potentially safer alternative (although nobody under 40 probably shops at Radio Shack either).

That being said, Cricket offers respectable service when you live and travel in areas where it provides service. In suburban Rochester, N.Y., your author’s personal experience is that voice coverage is comparable to that offered by Sprint. Their 3G network performs better than Sprint, but falls far behind AT&T, T-Mobile, and Verizon Wireless. Data roaming over Sprint’s 3G network is painfully slow in this area.

Cricket is planning on upgrading to 4G LTE service in additional cities next year. Currently, its coverage map only shows LTE service in Tucson, Ariz.

Supreme Court Indirectly Torpedoes Settlement Between Comcast & Philadelphia Customers

Phillip Dampier September 5, 2012 Comcast/Xfinity, Competition, Consumer News, Editorial & Site News, Public Policy & Gov't, RCN Comments Off on Supreme Court Indirectly Torpedoes Settlement Between Comcast & Philadelphia Customers

A surprise announcement from the U.S. Supreme Court that it will hear an appeal brought by Comcast Corporation in a class action lawsuit brought on behalf of Philadelphia consumers, despite a pending settlement, may mean the Supreme Court is on the verge of issuing another business-friendly ruling that will make class action cases more difficult to file.

Comcast had reached a tentative settlement in June with lawyers who brought a $875 million class-action lawsuit on behalf of Philadelphia area cable subscribers. The antitrust case, originally filed in 2003, accused Comcast of strategically swapping or acquiring cable systems owned by Marcus Cable, Greater Philadelphia Cablevision, Inc., Lenfest Communications, Inc., AT&T, Adelphia Communications Corp., Time Warner, and Patriot Media in and around Philadelphia for the purpose of creating a super-sized Comcast cable system that could deter competitors from entering the market and allow Comcast to charge higher prices for service.

RCN Telecom Services originally intended to compete for cable customers in the Philadelphia region, but found it could not break into the market because Comcast allegedly hired as many available technicians it could find and tied them down with exclusive contracts. RCN also claimed Comcast targeted potential customers with special, allegedly below-cost deals to retain their business. RCN later filed for bankruptcy.

“Stated bluntly, Comcast and other large cable operators have demonstrated both the inclination and the wherewithal to use their market power to crush broadband competition in their local markets whenever it has the audacity to appear,” RCN alleged.

In 2002, RCN went public with a series of allegations:

Comcast intimidates independent construction and installation contractors. Comcast prevented or tried to prevent about 15 Philadelphia-area contractors from doing business with RCN through “non-compete” clauses, RCN alleged. The company provided specific names of contractors and Comcast personnel in sealed documents.

Those practices dated at least to the late 1990s, when Comcast acquired Suburban Cable, RCN said. Both Suburban and Comcast went “to extraordinary lengths to document ‘violations’ and intimidate contractors who were thought to be in contact with, or working for, RCN,” RCN said.

RCN cited instances of Suburban Cable employees, many of whom later worked for Comcast, allegedly following contractors in their trucks and taking photographs to document contractors seen at an RCN office or work site. These photographs then became “evidence,” RCN said, to support contractors’ termination.

As for predatory pricing, RCN claimed that before its entry into Folcroft in 2000, Comcast allegedly established a sales “swat team” instructed to sign up customers for 18-month contracts in exchange for cheaper cable services.

The plaintiffs’ attorneys want subscribers to receive refunds representing the savings they would have enjoyed had a competitor successfully forced prices down.

Comcast and the plaintiffs’ counsel reached a tentative settlement in June after both sides learned the lawsuit would proceed to trial this September. But in a surprise announcement, the U.S. Supreme Court suddenly decided to step in and hear an appeal filed by Comcast. Comcast immediately declared the settlement incomplete and has now declined to proceed with it, believing it has a more favorable outcome waiting at the Supreme Court.

Kenneth A. Jacobson, a professor at Temple University’s law school, told the Philadelphia Inquirer the Supreme Court does not typically decide to hear a case “during the settlement negotiation and approval process.”

Other Supreme Court watchers suspect the Court’s sudden involvement in the case means it is likely to issue a precedent-setting decision, more likely than not in Comcast’s favor, that will be talked about in law journals for the next decade.

Comcast Center in downtown Philadelphia

The specific point of Comcast’s appeal that interests the Supreme Court has to do with how a class action case certifies damages to the court hearing the case. The Supreme Court agreed to hear the case based on, “whether a district court may certify a class action without resolving whether the plaintiff class has introduced admissible evidence, including expert testimony, to show that the case is susceptible to awarding damages on a class-wide basis.

Currently, courts insist that the burden of proof for damages lies with the plaintiff, but they are not necessarily required to demonstrate the actual individual damages suffered by each member of a proposed class action. Many judges accept the concept of fixed group damages based on a composite of an average proposed class member. That amount gets multiplied by the number of members in the certified class action to arrive at the total requested damages. Typically, both sides negotiate a final settlement, deduct attorney fees and costs, and then class members typically get a change in a company’s policies, coupons good for a future purchase or an actual refund in the mail.

The Supreme Court may find that concept inadequate, and insist on a detailed analysis of actual harm done to each proposed class member — a high and potentially expensive hurdle to cross for many class action cases. Legal analysts suggest the intended effect of such a decision would be to further deter class action lawsuits against companies, because the costs and complexities involved would increasingly not be justified.

In the Comcast case, the cable company wanted the court to dismiss the case, and for some very novel reasons:

  1. Since Comcast effectively kept competing “overbuilding” cable systems out of Philadelphia, there is no evidence of any theoretical competition benefits such as reduced prices;
  2. Since no competitor actually got their service up and running in Philadelphia, Comcast argues there was no competition to eliminate;
  3. RCN, in Comcast’s view, was never actually going to start service in Philadelphia because of their own financial woes;
  4. Without actual competition in Philadelphia, there is no basis for any expert witness hired by the plaintiff to credibly estimate damages;
  5. Even if Comcast was engaged in anti-competitive behavior in Delaware County, that cannot be used by plaintiffs to serve as evidence of class-wide impact for the entire multi-county Philadelphia Comcast cluster.

Over the past few years, the Court has ruled in favor of corporations trying to compel less-costly legal avenues — like mandatory arbitration — for consumers who feel harmed by a company’s actions.

Verizon’s Dilapidated Image in Buffalo: A Picture Says It All

Phillip Dampier September 4, 2012 Consumer News, Editorial & Site News, Verizon 1 Comment

A Verizon pay phone in front of a company facility in downtown Buffalo, N.Y.: A Buffalo Rising editorial raises questions about the state of Verizon in the Queen City by sharing photographs of a dilapidated “Verizon building on Elmwood between Lexington and Utica. How is it that such a huge company can associate its image with such a tragic appearance? If there was any company in Buffalo that could afford to make improvements to a prime location, it’s Verizon.”
(Click image to read the story on Buffalo Rising)

Frontier Boosting Speeds in Select Areas; Premium Customers Win No Modem Rental Fee

Faster

Frontier Communications customers in selected communities will be able to receive faster Internet speeds by the end of the year because of network upgrades.

In late July, Frontier president and chief operating officer Daniel J. McCarthy announced the company was refocusing investment on improving the broadband experience for its customers, mostly serviced by ADSL.

Frontier’s rural customers primarily receive broadband service at real-world speeds of 768kbps-3Mbps. At least 74% of those customers will be able to sign up for speeds of 6Mbps by the end of the year. In more urban areas, 51% of customers will be able to sign up for 12Mbps, 42% for 20Mbps. Business customers in selected areas can qualify for speeds up to 40Mbps.

The upgrades will not come for free, however. Customers will pay more for higher speeds.

McCarthy

Frontier Max (3Mbps in rural areas, 6Mbps in urban areas) starts at $34.99 per month. Customers can move up to the next speed tier for an additional $10 per month. For example, a Frontier Max customer can move up to Ultra service (10-12Mbps) for $44.99, or Frontier Ultimate (20-25Mbps) for $55.99 per month. Once customers upgrade to a premium speed level, the modem rental fee (up to $6.99 a month) is reportedly eliminated.

Frontier’s upgrades are based on adopting more advanced forms of DSL technology. Most Frontier customers currently receive ADSL service — one of the oldest and slowest forms of DSL. Frontier is managing to boost speeds by bonding multiple DSL connections together, switching to ADSL 2+, or upgrading to VDSL technology. The company is also broadening its fiber middle mile network, which can reduce the length of copper wiring between the company’s central offices and customer homes, improving potential speeds.

Customers who do not change their level of service may still receive some benefits from area upgrades, as actual speeds come closer to matching those advertised by the company.

In some areas, customers will receive telemarketing calls announcing newly available speed options. But customers can also call 1-800-921-81o1 to find out what is currently available.

Stop the Cap! recommends proceeding carefully when considering a plan change. Be sure to ask about all terms and conditions, including installation/upgrade fees, modem rental fee (if any), contract terms, and whether any additional services are required (Frontier may attempt to sell an added-cost online backup service, home networking equipment, or technical support services you may not need).

Finger Pointing – Who Failed Rural Broadband: Democrats, Republicans, or Providers?

One of the rural groups fighting to keep funding for rural broadband networks.

The Republican platform on telecommunications and its criticism of the Obama Administration’s handling of broadband inspired a blogger at the Washington Post to ponder the question, “Whatever happened to Obama’s goal of universal broadband access?

Brad Plumer sees the Republican criticism as valid, at least on the surface:

Does anyone remember when the Obama administration promised to bring “true broadband [to] every community in America”? The Republican Party definitely does, and its 2012 platform criticizes the president for not making any progress on this pledge:

“The current Administration has been frozen in the past…. It inherited from the previous Republican Administration 95 percent coverage of the nation with broadband. It will leave office with no progress toward the goal of universal coverage—after spending $7.2 billion more. That hurts rural America, where farmers, ranchers, and small business manufacturers need connectivity to expand their customer base and operate in real time with the world’s producers.

So whatever happened to the Obama administration’s plan to expand broadband access, anyway? In one sense, the Republican critics are right. Universal broadband is still far from a reality. According to the Federal Communications Commission’s annual broadband report, released in August, there are still 19 million Americans who lack access to wired broadband. Only about 94 percent of households have broadband access. Obama hasn’t achieved his goal.

Stop the Cap! has been watching the rural broadband debate since the summer of 2008, and believes the failure to do better isn’t primarily the fault of Republicans or Democrats — it lies with the nation’s phone companies — particularly AT&T and Verizon. But both political parties, to different degrees, have helped and hindered along the way.

Plumer slightly misstates the commitment of the Obama Administration at the outset. The Obama-Biden Plan never promised to successfully complete universal broadband access in the United States. Here is their actual pledge (emphasis ours):

Deploy Next-Generation Broadband: Work towards true broadband in every community in America through a combination of reform of the Universal Service Fund, better use of the nation’s wireless spectrum, promotion of next-generation facilities, technologies and applications, and new tax and loan incentives. America should lead the world in broadband penetration and Internet access.

Big Phone Companies Struggle to Abandon Landlines in Rural America

The Obama-Biden Plan for broadband never promised you a rose garden. It simply promised the administration would get to work planting one.

By far, AT&T and Verizon Communications are the most culpable for leaving rural Americans without broadband service. Over the last four years, both companies have diverted investment away from their landline networks into wireless. AT&T has also spent millions lobbying state governments to free itself from the requirement of serving as “the carrier of last resort,” a critical matter for rural landline customers, particularly because rural wireless coverage remains lacking.

In most states, the dominant phone company is still mandated to provide basic telephone service to every customer who wants it. Universal electric and telephone service goes all the way back to the Roosevelt Administration, who saw both as essential to the rural economy.

The Communications Act of 1934 that the Republicans today dismiss as outdated established the concept of universal telephone service: “making available, so far as possible, to all the people of the United States a rapid, efficient, nationwide and worldwide wire and radio communication service with adequate facilities at reasonable charges.”

The concept of universal service was reaffirmed, with the blessing of the telephone companies, under the sweeping deregulation of the landmark Telecommunications Act of 1996. Republicans call that law outdated as well.

Rural America Can’t Win Better Broadband If Their Providers Don’t Play

Decided not to participate in rural broadband funding programs.

The American Recovery and Reinvestment Act provided the Department of Commerce’s National Telecommunications and Information Administration (NTIA) and the U.S. Department of Agriculture’s Rural Utilities Service (RUS) with $7.2 billion to expand access to broadband services in the United States. Of those funds, the Act provided $4.7 billion to NTIA to support the deployment of broadband infrastructure, enhance and expand public computer centers, encourage sustainable adoption of broadband service, and develop and maintain a nationwide public map of broadband service capability and availability.

This first round of serious broadband stimulus was designed to help defray the costs of bringing broadband to rural areas where “return on investment” formulas used by large phone companies deemed them insufficiently profitable to service.

Remarkably, America’s largest phone companies declined to participate. In March 2009, AT&T and Verizon delivered their response to the Obama Administration through Bloomberg News:

Verizon Communications Inc. and AT&T Inc. may have this response to the U.S. government’s offer of $7.2 billion for high-speed Internet projects: Keep it.

Unlike the businesses that welcomed the $787 billion stimulus package approved by Congress last month, the two biggest U.S. phone companies have reservations. They’re urging the government not to help other companies compete with them through broadband grants or to set new conditions on how Internet access should be provided.

The companies have remained noncommittal as they lobby to shape rules for the grants.

“We do not have our hand out seeking government funds,” James Cicconi, AT&T’s senior executive vice president, told reporters March 11. While the company is “open to considering things that might help the economy and might help our customers at the same time,” he said AT&T’s primary focus for broadband is its own investment program.

Also declined to participate.

AT&T’s own financial reports illustrate its “investment program” was largely focused on its wireless services division, not rural broadband. Many other phone companies filed objections to projects they deemed invasive to their service areas, whether they actually provided broadband in those places or not.

When the final NTIA grant recipients were announced, the overwhelming majority were middle-mile or institutional broadband networks that would not provide broadband to any home or business.

The U.S. Department of Agriculture’s Rural Utilities Service managed the rest of the broadband grants and loans, and the majority went to exceptionally rural telephone companies, co-ops, and tribal telecommunications. AT&T did participate in one aspect of broadband stimulus — its legal team and lobbyists appealed to grant administrators to change the rules to be more flexible about how and where grant money was spent.

In the past year, both AT&T and Verizon have signaled their true intentions for rural landline service:

Verizon’s McAdam: Ready to pull the plug on rural landlines.

Verizon CEO Lowell McAdam: “In […] areas that are more rural and more sparsely populated, we have got [a wireless 4G] LTE built that will handle all of those services and so we are going to cut the copper off there,” McAdam said. “We are going to do it over wireless. So I am going to be really shrinking the amount of copper we have out there and then I can focus the investment on that to improve the performance of it.”

AT&T CEO Randall Stephenson: “We have been apprehensive on moving, doing anything on rural access lines because the issue here is, do you have a broadband product for rural America?,” Stephenson told investors earlier this year. “And we’ve all been trying to find a broadband solution that was economically viable to get out to rural America and we’re not finding one to be quite candid.”

More recently, Verizon has nearly disinherited its DSL service, making it more difficult to purchase (impossible in FiOS fiber to the home service areas). In states like West Virginia, it effectively slashed expansion and infrastructure investment as it prepared to exit the state, selling its network to Frontier Communications. AT&T has shown almost no interest expanding the coverage of its DSL service either. If you don’t have access to it today, you likely won’t tomorrow.

A good portion of the broadband stimulus funding provided by the government is actually in the form of low-interest, repayable loans. Despite rhetoric in the Republican platform about supporting public-private partnerships to expand rural broadband, the Republicans in Congress launched coordinated attacks on the Broadband Access Loan Program offered by the USDA’s Rural Utilities Service in the spring of 2011. Various right-wing pundits and pressure groups joined forces with several Republican members of Congress attempting to permanently de-fund the program, starting with $700 million in federally-backed loans in April, 2011. The loans were targeted to public and private rural telecommunications companies attempting to expand or introduce broadband service.

Attacks on the effectiveness of President Obama’s broadband campaign pledges in the Republican platform ring a little hollow when Republican lawmakers actively blocked the administration’s efforts to keep those promises.

Killing Community Broadband: Priority #1 for Providers With the Help of Corporate-Backed ALEC and State Politicians

AT&T’s Stephenson: Doesn’t have a solution for the rural broadband problem, so why try?

Stop the Cap! has repeatedly reported on the challenges of community broadband in the United States. Launched by towns and villages to provide quality broadband service in areas where larger companies have either underserved or delivered no service at all, publicly-owned broadband is often the only chance a community has to stay competitive in the digital age.

That goal is shared by the GOP’s platform, which states how important it is to connect “rural areas so that every American can fully participate in the global economy.”

Unfortunately, unless your local phone or cable company is providing the service, all too often they would prefer communities continue to receive no service at all.

AT&T is among the most aggressive phone companies lobbying state officials, often through the American Legislative Exchange Council (ALEC), to pass state laws hindering or banning community broadband development. ALEC supporters, overwhelmingly Republican, accept company-drafted legislation as their own and introduce it in state legislatures, hoping it will become law. Generous campaign contributions often follow.

In the past few years, AT&T and Time Warner Cable have been especially active in broadband backwater states like North and South Carolina and Georgia, where rural counties often receive nothing more than DSL service at speeds that no longer qualify as “broadband” under the Obama Administration’s National Broadband Plan. In North Carolina, Democratic state politicians well funded by Time Warner Cable helped push bills forward, but it took a Republican takeover of the North Carolina legislature to finally get those laws enacted. South Carolina presented fewer challenges for state lawmakers, despite protests from communities across the state bypassed by AT&T and other phone companies.

The efforts to de-fund broadband stimulus and tie the hands of communities seeking their own broadband solutions have done considerable damage to the rural broadband expansion effort.

Universal Service Fund Reform: Not Much Help If America’s Largest Phone Companies Remain Uninterested

The Obama Administration has also kept its pledge to reform the Universal Service Fund, recreating it as the Connect America Fund (CAF) to help wire rural America.

Hopes for rural broadband drowned in the cement pond.

In its first phase of broadband funding, $300 million dollars became available to help subsidize the cost of rural broadband construction. Deemed a “mild stimulus” effort that would test the CAF’s grant mechanisms, only $115 million of the available funding was accepted by the nation’s phone companies — all independent providers like Frontier, FairPoint, CenturyLink, Windstream, and smaller players. Once again, both AT&T and Verizon refused to participate. There is no word yet on whether the two largest phone companies in the country will also effectively boycott the second round of funding, estimated to allocate over $1.8 billion to expand rural broadband.

“Getting to 100 percent is going to be a very difficult long-term goal, given the size of the U.S. landmass and the huge expense to reach those final couple of percentage points,” John Horrigan of the Joint Center Media and Technology Institute told Brad Plumer.

Politics and provider intransigence seem to be getting in the way just as much as America’s vast expanse. Many conservative and provider-backed groups have called America’s claimed 94% broadband availability rate a success story, and don’t see a need to fuss over the remaining six percent that cannot buy the service (and pointing to a larger number that don’t want the service at today’s prices).

Beyond the partisan obstructionism and middle mile/institutional network “successes” that ordinary consumers cannot access, the real issue remains the providers themselves. You can lead a horse to water but you cannot make him drink.

It seems as long as AT&T and Verizon treat their rural landline customers as hayseed relatives they (and Wall Street) could do without, the rural broadband picture for customers of AT&T and Verizon will remain bleak at current stimulus levels regardless of which party promises what in their respective platforms.

Search This Site:

Contributions:

Recent Comments:

Your Account:

Stop the Cap!