The Federal Communications Commission today raised the hurdle for AT&T when it told the wireless company it would consider its proposed acquisition of wireless spectrum from Qualcomm in concert with its application to acquire T-Mobile USA.

The FCC wrote both AT&T and Qualcomm regarding the ongoing review of both transactions:

“The Commission’s ongoing review has confirmed that the proposed transactions raise a number of related issues, including, but not limited to, questions regarding AT&T’s aggregation of spectrum throughout the nation, particularly in overlapping areas. As a result, we have concluded that the best way to determine whether either or both of the proposed transactions serve the public interest is to consider them in a coordinated manner at this time.”

AT&T Donates $9,000 to the United Way of Northwest Florida, which promptly returns the favor with a nice letter to the FCC supporting the telecom company's agenda.

At issue is whether AT&T is warehousing wireless spectrum it actually has little intention to use and whether or not AT&T is being honest when it suggests it needs to acquire T-Mobile USA to expand the number of frequencies open for its growing wireless network.

Critics of the merger claim AT&T has plenty of unused spectrum available to deliver service, particularly in the rural areas AT&T claims T-Mobile can help it serve.  T-Mobile is not well-known for its service in smaller communities and rural areas, preferring to rely on roaming agreements to achieve national coverage.  With its proposed acquisition of valuable spectrum in the 700MHz range from Qualcomm, excellent for penetrating buildings and delivering reliable service, the FCC may be wondering if the proposed merger with T-Mobile is necessary at all.

Gigi Sohn from Public Knowledge doesn’t think so.

“We are pleased that the Commission has decided to consider AT&T’s purchase of Qualcomm spectrum in the context of AT&T’s takeover of T-Mobile.  It doesn’t matter whether both transactions are in the same docket; the fact that the Bureau will consider them together in any manner is a strong statement,” Sohn said.

“This April, several public interest groups, Consumers Union, Free Press, the Media Access Project, Public Knowledge, and the New America Foundation, asked for the Commission to take that action because we said that both deals together would ‘further empower an already dominant wireless carrier to leverage its control over devices, backhaul, and consumers in ways that stifle competition,” Sohn added.  “We look forward to working with the Commission on these issues which are so vital to the economy of this country.”

Companies that have acquired wireless spectrum at government auctions have not always put those frequencies to use.  At least one firm warehoused spectrum as an investment tool, earning proceeds reselling it to other providers.  Others have simply squatted on their spectrum, sometimes to keep it away from would-be competitors.

Of course, considering AT&T is a master of dollar-a-holler astroturf operations and lobbying, it’s only a matter of time before a renewed blizzard of company-ghost-written letters start arriving at the Commission telling them AT&T needs both the Qualcomm spectrum -and- the merger with T-Mobile.

Groups like the NAACP, United Way of Northwest Florida, the National Puerto Rican Coalition, and the U.S. Cattlemen’s Association ought to know, right?

Thanks to Stop the Cap! reader Bones for alerting us.

LightSquared’s basic business plan of delivering a nationwide 4G network has been an open question ever since the company’s technology threatened to obliterate GPS satellite navigation technology.  Now the company is taking a page from the Washington’s Public Relations Firm Playbook by ingratiating itself with important lawmakers that can make or break the multi-billion dollar endeavor.

LightSquared announced it is donating equipment and service to Native American organizations, starting in Oregon, Washington, Idaho and Arizona — all conveniently located in key lawmakers’ states and districts.  In addition to agreeing to provide satellite phone service to remote tribal communities completely unserved by other technologies, LightSquared is also contributing 2,000 satellite telephones to the Indian Health Service, the federal agency responsible for administering health care to native populations on reservations and throughout tribal communities in Alaska.

How can the company deliver service over a network threatened with legislative obliteration?  LightSquared’s donation to Native Americans will rely on the company’s satellite network, which has not been deemed an interference generator by opponents.

Satellite telephony has proved to be obscenely expensive and of limited interest outside of military, shipping, and forest service applications.  At rates averaging up to $5 a minute or more, keeping conversations short is key to avoid bill shock.  Such technology is completely out of reach for most tribal communities, who are among the most income-challenged of all North Americans.  The contribution may buy the venture some goodwill on Capitol Hill, where it is sorely needed as skepticism over the company’s 4G service, to be operated on frequencies adjacent to GPS satellites, has reached an all-time-high.

LightSquared is learning the time-tested ways of Washington, where substance and common sense often take a back seat to political posturing, special interest politics, and campaign contributions.

Customers who flee Bell Canada’s products and services for lower prices and less abusive Internet Overcharging are being encouraged to visit what Bell internally calls its “customer winback” website.  It’s Bell Canada’s place to extend special pricing and promotional offers to those considering a return to the telephone company.  But Stop the Cap! found the offers less than compelling and some of the company’s claims a real stretch:

There are many reasons to switch to Bell.

Switch to Bell for the most reliable home phone service¹. We’ve made many enhancements and are so confident you’ll enjoy our services, they come with a complete 30-day satisfaction guarantee, or your money back².  Switching is easy.  You can keep your existing home phone number³ and we’ll take care of the details with your current service provider.

With Bell Home phone you’ll enjoy:

• The most reliable service
• No reconnection fees

Plus, take advantage of savings on more great Bell services for your home.

Bell Internet – Perfect for sharing

• The largest fibre optic network in Canada
• Upload speeds up to 3x faster than cable⁴
• Free Wireless Home Network

Bell Satellite TV- Over 100 HD channels

• Stunning HD picture quality – 10x better than regular cable
• Canada’s best HD PVR⁵ – set and manage recordings from anywhere
• On Demand movies in 1080p HD – the highest quality of any provider

With Bell Install, you get a complete and customized installation at no charge⁶. Sit back, relax and we’ll set everything up for you.

Join the thousands of customers switching to Bell every week and start saving.

With six footnotes to the fine print in as many paragraphs, warning bells begin to ring almost immediately.  Those footnotes can cost customers some real money:

1. Applies to traditional copper-based (excluding fibre-based) wireline telephony; compared to cable telephony and based on continued service during extended power outages at customer’s home.

In other words, Bell phone service is more reliable because it works when the power goes out, unless it’s from Bell’s Fibe TV.  When power drops, your Bell Fibe phone line goes with it.  But if your phone lines are rotten, nothing will save you from a phone service outage, whether you are a wireline or “fibre-based” customer.  By the way, although Fibe is fibre part of the way, it ultimately arrives for most customers on the same copper wire phone line technology you’ve had for decades.

2. Credit offered on service fees for TV, Internet, Home phone (excluding Mobility), and applicable installation, activation or equipment fees; does not apply to usage fees (such as long distance, additional Internet usage capacity, On Demand TV programming). Client must call within 30 days of activation. Conditions apply, see bell.ca/satisfaction.

Among the other terms and conditions not immediately disclosed:

• No refunds will be issued to customers modifying or upgrading any existing Eligible Services;
• Prior to issuing a refund for equipment purchased directly from Bell, the equipment must be returned to Bell in the same condition as when it was purchased, with all original packing materials, manuals, accessories and associated equipment, along with proof of purchase;
• You may claim no more than one (1) refund under the Bell Satisfaction Guarantee in any 12 month period;
• You must be fully compliant with the terms and conditions applicable to your Eligible Services, and
• All accounts for Bell services must be in good standing.

3. Within same local calling area

A no-brainer.

4. Current as of May 1, 2011. Comparison between Bell Fibe Internet 25 (upload up to 7 Mbps) and Rogers Ultimate Internet (upload up to 2 Mbps).

Bell apparently doesn’t think Quebec’s Videotron is worth mentioning.  They upgraded to 3Mbps upload speeds for their highest tiers last February.  Like AT&T’s U-verse, “fiber to the neighborhood” networks simply cannot deliver the fastest download Internet experience that fiber to the home or cable DOCSIS 3 providers can deliver, although the upload speed for Fibe (when you actually achieve 7Mbps) is a nice change from the neutered speeds cable companies provide for “the up side.”  But Bell counts your upload traffic against the usage allowance.

5. Based on a combination of 30-second skip function, 9-day programming guide, expandable recording capacity and remote PVR feature. Additional equipment required.

Additional equipment costs additional money.

6. Conditions apply; see bell.ca/fullinstall for Bell Internet and bell.ca/installationincluded for Bell TV. For Home Phone, available to customers with Home Phone Choice or Complete, or with Unlimited Canada/US long distance plan, or the Bell Bundle; one-time activation fee (up to $55/line) applies, credited on the account before taxes, and additional charges may apply for installation of a new phone jack.

A complete and customized installation “at no charge,” except for that pesky $55 “activation fee” eventually credited on the account (but you still pay GST/PST on the ‘rebated’ amount).  Some of our readers have complained to us that they’ve had to call Bell, sometimes repeatedly, to get that activation fee credited back.  Bell sometimes forgets.

Unfortunately, for too many in suburban and rural Canada, it’s Bell telephone infrastructure or nothing — no cable provider exists to offer a competitive alternative.  They are the company that charges more for less.

Considering Bell is Canada’s number one advocate for Internet Overcharging, you can do better with almost any other provider.  Let Bell know they can “win you back” when they deliver scheme-free service at a fair and reasonable price.  Until then, tell them they can swing alone.

For the past two years, we’ve watched a lot of expansive fiber broadband projects get promoted by local media as broadband nirvana for individual homes and businesses that are either stuck with molasses-slow DSL or no broadband at all. Now, we’ve found another, sold by Springfield, Mass. media as salvation from Verizon’s ‘Don’t Care’ DSL for western Massachusetts.  But will the 1,300 miles of fiber actually reach the homes that need a broadband boost?

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/WSHM Springfield Broadband in Berkshires 7-26-11.mp4[/flv]

WSHM-TV in Springfield covered the start of MassBroadband 123’s fiber optic project as the solution to rural broadband woes in western Massachusetts.  But most residents won’t actually get to use the new network, at least initially.  (2 minutes)

Last month, Gov. Duval Patrick joined public officials and firefighters at the Sandisfield Fire Department to kick-off construction of the MassBroadband 123 fiber-optic network project to expand broadband access to more than 120 communities in western and north central Massachusetts.

MassBroadband 123 Service Area (click to enlarge)

“For too long, families and businesses in western Massachusetts have lived without reliable and affordable high-speed Internet access,” said Governor Patrick. “Today, as we commence the installation of more than 1,000 miles of fiber-optic cable across the region, we start the critical final step in delivering broadband access to everyone. The digital divide in Massachusetts is about to close.”

Don’t hold your breath.

Don’t get me wrong.  The Massachusetts Broadband Institute means well.  Judith Dumont, the group’s director, is well-aware of the challenges rural Massachusetts has getting 21st century broadband.  She’s helping to oversee the construction of an enormous middle-mile, fiber backbone network that will eventually reach those ten dozen communities.  But much of the funding for the project precludes the possibility of directly wiring that fiber to the people who actually need it.  The incumbent providers’ lobbyists have seen to that, broadly warning it would represent ISP Socialism to allow government money to deliver service to homes and businesses — customers they themselves claim to be committed to serve.  But ask any resident in Sandisfield how well they manage that.

Gov. Patrick splices fiber cable at inauguration ceremony for fiber expansion project. (Courtesy: MBI)

A good part of upgraded broadband on the way in the Berkshires will be provided to government institutions like local government, public safety, schools, and libraries.  There is nothing wrong with that either, but when local media blurs this distinction into belief fiber-fast Internet access is on the way to Mr. & Mrs. Jones living on Maple Street, they do a real disservice to the cause for better broadband.

Dumont optimistically believes that opening the state’s fiber network to incumbent providers on a wholesale basis will dramatically help the pervasive problem of reaching rural customers.  Unfortunately, this has simply not been our observed experience watching these projects develop.  The “last mile” problem doesn’t get solved with the existence of a middle mile network, because providers are rarely willing to invest in the construction costs to wire the unwired.  Political and business matters too often get in the way.

Cable companies frequently boycott participation in these networks, and phone companies like Verizon Wireless -may- utilize them for backhaul connectivity to their cell towers, but don’t expect to see lightning-fast Verizon FiOS fiber to the home service springing up anytime soon in western Massachusetts, even if fiber connectivity is provided just a mile or so up the street.  If they didn’t build it themselves, many providers just are not interested.

“Last mile” is often the most expensive component in a broadband network.  It’s the part of the project that requires digging up streets and yards, stringing cables across phone poles, and literally wiring the inside and outside of individual homes and businesses.  Verizon FiOS works in densely populated areas where large numbers of potential customers are likely to deliver a quick return on investment in the network.  But Wall Street has always disagreed, declaring the capital costs too high to make sense.  AT&T won’t even match Verizon’s commitment, relying instead on fiber-to-the-neighborhood networks that deliver access over a more modern type of DSL, delivered on fiber to copper wire phone lines already in place.  That’s their way of not spending money rebuilding their own last mile network.

Wireless ISPs are expected to take advantage of the state's new middle-mile network.

If any part of the broadband network in rural America needed subsidies, the “last mile” is it.  But Washington routinely delivers the bulk of federal assistance to the construction of middle mile networks and institutional broadband that doesn’t deliver a single connection to a homeowner or business.  That suits incumbent providers just fine, judging from their lack of interest in applying for broadband subsidy funding made available two years ago and their hard lobbying against community broadband networks, or anything else smacking of “competition.”

Thus far, the limited grants that are available for “last mile” projects require substantial matching funds and are often limited to $50,000 — a ridiculously low amount to solve the “last mile” challenge.  Those trying are primarily fixed wireless providers valiantly attempting to serve the areas DSL and cable forgot, but deliver woefully slow speeds at incredibly high prices.  WiSpring, one such Wireless ISP, wants to expand coverage with the help of the new fiber network.  But their top advertised wireless speed for residential customers is 1.5Mbps, and that will set you back $100 a month after a $500 installation charge.  Oh, and their customer agreement limits use to 25GB per month with a $10/GB overlimit fee.  That’s hardly the kind of broadband solution a multi-million dollar fiber network should bring to individual consumers.  It’s as frustrating as filling a pool, one cup of water at a time, with an eye-dropper.

Now imagine if a quarter of the state’s $40 million investment in broadband — $10 million, was spent physically wiring individual homes with fiber broadband.  Would that make a bigger splash in the lives of ordinary consumers than a middle mile network they cannot directly access?  Is construction of a state-of-the-art fiber network a good investment when many of the providers scheduled to use it are Wireless ISPs delivering bandwidth suitable for e-mail and basic web browsing only?

In West Virginia, we learned last month the state is swimming in middle mile stimulus grant money it can’t spend fast enough on behalf of institutions — many who either already have super fast service or can’t afford the Cadillac pricing that represents the ongoing service charges not paid for by grant funds.  Is this a good way to spend tax dollars?

Communities large and small need to think big when it comes to broadband.  Building a middle mile network does not by itself solve the access problem.  It’s a fine start, but absolutely requires a follow-up commitment to solve the last mile problem.  Here are our recommendations:

1. Demand the federal government eliminate restrictions on the kinds of network projects that can built with stimulus funds, especially those that prohibit investment in last-mile networks;
2. Don’t believe for a moment large cable and telephone companies will bring better broadband to consumers just because you have a middle mile network.  Historically, they have lobbied hard against last-mile projects they do not own or control, and fund conservative political groups to oppose your community’s right to develop and govern your own broadband future;
3. If incumbent providers won’t provide the service your community needs, consider exploring the possibility of doing it yourself.  Just as MBI contracts the wholesale part of its service out to a third party to administer, nobody says the village clerk has to be a billing agent for a community broadband service that directly serves your residents;
4. Involve local citizens in rallying for better broadband instead of sitting around and waiting for the local phone or cable company to provide it.  They won’t.  It’s a simple matter of economics for them – will they get a sufficient return on their investment within five years? If not, you are not getting improved broadband.  That works for them but doesn’t work for your community, and providers have made it clear most of the networks they intend to build are already built.  That leaves a lot of communities behind.
5. While wireless may be an answer for the most rural or difficult-to-reach homes, it is not a realistic solution for 21st century broadband inside village or town limits.  Wireless networks often lack the capacity to sustain the growing demand for multimedia, high-bandwidth content that is becoming more important for today’s online experience.  When a provider limits usage to 25GB a month, that’s a big problem for any community that will soon find itself stuck in a broadband swamp while the rest of the country passes it by.
6. The biggest financial challenges seem to come to those who think small about broadband projects.  Don’t rely on yesterday’s technologies for tomorrow’s networks.  Fiber-based broadband will deliver the best bang for the buck and is infinitely upgradable.  That’s why rural phone companies and cooperative telecom providers are constructing fiber networks themselves.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/WGBY Springfield The State Were In Judith Dumont 7-11.mp4[/flv]

WGBY-TV in Springfield talked with Judith Dumont about western Massachusetts’ broadband future.  (19 minutes)

An example of an 801.22 Wireless Regional Area Network

The mainstream media and technology blogs have been running away with coverage about the IEEE’s recent approval of the so-called “white space” 802.22 wireless standard with stories of up to 100 kilometers of wireless coverage for home Wi-Fi over unused UHF television channels.  The thought of installing a router that can deliver reception of your personal broadband connection for up to 62 square miles sounds very exciting, but don’t get as carried away as some media outlets have.

The truth is, 802.22 benefits wireless providers, not consumers (unless you happen to receive your Internet service from a commercial provider over this technology.)

The new standard was designed to benefit Wireless Regional Area Networks (WRANs).  In general terms, this means Wireless Internet Service Provider (WISPs), who are most likely to adopt the new technology to enhance wireless service over long distances in rural areas not covered by DSL, cable broadband, or other wired networks.  To achieve the maximum amount of coverage noted in the popular press, providers will need to utilize specialized transmitters using antennas considerably higher than what one would find in a home environment.

Unlike today’s Wi-Fi networks, 802.22 uses much lower frequencies which tend to propagate over longer distances.  Using frequencies in the Megahertz range instead of the Gigahertz range makes it much more likely ground-based wireless signals will penetrate buildings and reach across the rural landscape.

To accommodate “white space” wireless, the Federal Communications Commission last year approved the use of unused broadcast channels for these data transmissions.  But providers will not simply be able to fire up their white space Wi-Fi network just anywhere.  The standard includes a provision that will automatically register the exact location of each transmission site with a central coordinating body.  Providers must agree to vacate channels if harmful interference to licensed broadcasters is “sensed” by the technology, and even though multiple operators may be able to operate concurrently in an area at the same time, there are important limitations on how many available “white space” channels will exist in different television markets.

Realistically, the most sensible implementation of 802.22 will come in very rural areas with few, if any, local broadcast signals to contend with.  If the FCC has its way, a considerable amount of the so-called “white space” will be sold off to America’s largest cell phone companies, leaving even fewer channels open for this kind of wireless broadband.  In large urban markets, it’s doubtful many channels will be available for 802.22 use, if any at all.  Currently, the FCC dictates these networks cannot operate on an occupied broadcast channel, or the adjacent channels on either side.  That means if your city has a station on channel 31, these networks cannot use channels 30, 31, or 32.

Another problem is the available bandwidth for individual users.  Each “channel” has 6MHz of bandwidth, which can realistically provide 12Mbps service to a single user.  The IEEE specifies a maximum speed of 22Mbps, but that is more theoretical than actual when taking into account the longer distances average customers will be from the transmitter.  Providers will almost certainly pack each channel with multiple users.  A dozen customers concurrently using the service would probably get around 1.5Mbps on average (384kbps upstream), assuming nobody saturates the channel at maximum speeds. That is equivalent to some rural DSL providers.  Should providers “oversubscribe” the network, and dozens of customers try and use the service at the same time, speeds could drop precipitously.  The further users are from the transmitter, the lower the speeds they will receive regardless of how many users are on the network at that time.

To handle demand, one solution is to run multiple transmitters to handle the traffic, but how many transmitters can operate will depend on how much “white space” is available.  That is why this technology is best suited for rural areas where UHF television signals, and customers, are few and far between.

Home Wi-Fi users will need to wait for the development of a different standard — 802.11af — to take any advantage of “white-space” Wi-Fi, sometimes called White-Fi or “Super Wi-Fi.”

Since the much used 2.4 GHz band for Wi-Fi is congested in urban areas, IEEE 802.11af can provide additional open frequencies for home users.  But most 802.11af home equipment will operate at considerably lower power and range, and will suffer some of the same bandwidth limitations created by narrow channel spacing.  An even bigger problem will be available channel space.  The same urban areas experiencing over-congested Wi-Fi will also likely have the largest number of operating television signals, limiting the use of this technology.

Some theorize White-Fi wireless will not be of much use to home broadband users at all, instead opening up connectivity for devices we might not normally associate with wireless connectivity.  A home security system could plausibly work well with limited bandwidth.  So could home electronic devices that want to communicate their status.  A washer and dryer could use the technology to communicate with each other to synchronize completion time and signal the homeowner that their laundry is ready.  Home weather stations could deliver data over longer distances, refrigerators could signal owners they need to be restocked, and so on.

If you are waiting for wireless broadband nirvana, unfortunately there is not much to see here with these developments.  Increasing usage demands continue to make wireless among the least suitable technologies to deliver the substantial-sized data pipeline broadband consumers increasingly require.