We saved the only good part.

The best part of Cablevision’s latest ridiculous advertising campaign is the 12-month introductory price new subscribers will pay for phone, broadband, and television service: $84.95 a month. Not bad. The same cannot be said to the advertising agency that created this mess and the executives who approved it.

Richard Greenfield from BTIG Research, which covers Cablevision for Wall Street, isn’t impressed with Cablevision’s ads either:

We believe it is time for Cablevision to find a new ad agency, bring in some new marketing executives internally and seriously rethink what their consumer proposition is – going back to pitching the triple-play at an ever lower (now $84.95 price point) is not particularly compelling. Cablevision already has very high level of bundling of video, data and voice services across its customer base.  Given that, Cablevision should be devising a marketing approach to upsell existing customers, especially higher speed, higher ARPU broadband services (given their high margin).

Consumers concerned about the high cost of cable may not agree with Greenfield’s assessment. Paying $85 a month for a triple play package is a great deal, at least until it expires.

But we suspect a lot of consumers will never get that far through the ad, particularly when most viewers don’t pay that much attention to advertising in the first place.

Phillip Dampier

It is no secret that there is an urban-rural broadband divide.

The market-driven, private enterprise broadband landscape delivers the best speeds and service to urban-suburban areas, particularly those in and around large cities, short-changing rural communities.

This is true regardless of the technology: the fastest fiber optic services are delivered in large population centers, and wireless speeds are fastest there as well. But as the National Telecommunications and Information Administration has discovered, the further away you get from these urban sectors, the poorer the service you are likely to get.

The NTIA’s findings present a significant challenge to phone company claims that rural customers would be better served with wireless broadband instead of spending money to support and upgrade landline infrastructure, which supports DSL and is upgradable to fiber optics.

The NTIA finds these rural wireless networks to be severely lacking:

Not only are far fewer rural residents than urban residents able to access 4G wireless services (i.e., at least 6Mbps downstream), but a further divide also exists within rural communities. For wireless download services greater than 6Mbps, Very Rural communities have approximately half the availability rate of Small Towns, and Small Towns have about half the availability rate of Exurbs (10, 18, and 36 percent, respectively).

This represents nothing new. AT&T and Verizon have shortchanged their rural customers with catastrophically slow DSL service (or none at all) for years:

For wireline download service, Very Rural communities also have the least availability of all five areas. Though a rural/urban split continues to be useful in providing generalized information about availability, a five-way classification uncovers a more refined picture of the divide in broadband availability across the nation. For example, at wireline download speeds of 50Mbps, broadband availability varies from 14 percent (Very Rural), 32 percent (Exurban), 35 percent (Small Town), 62 percent (Central City), to 67 percent (Suburban), even though the overall broadband availability was 63 percent in urban areas compared to 23 percent in rural areas. In addition, wireline and wireless broadband availability, particularly at faster speeds, tends to be higher within Central Cities and the Suburbs compared to everywhere else.

Why the disparity? It is a simple case of economics. Wealthy suburbs can afford the ultimate triple play packages, so providers prioritize the best service for these areas, even above less costly to serve urban centers. Rural residents either get no service at all or only basic slow speed DSL. The Return on Investment to improve broadband is inadequate for these companies in rural areas.

Source: NTIA

The same is true with wireless 4G service. Rural areas struggle for access or endure poor reception because fewer towers provide service away from major highways or town centers.

The NTIA observed wireless download speeds of 6Mbps or more were available to 90% of urban residents, but only 18% of small town residents. Wireless upload speeds of 3Mbps or greater were found in only 14% of small towns.

Dee Davis, president, Center for Rural Strategies, based in Whitesburg, Va. said the implications were clear.

“The market’s always going to go to the well-heeled communities,” Davis observed. “It’s going to go to the densest population.”

Folks in rural communities end up paying more for a lower level of service, Davis said.

“That also means that they don’t get the same chance to participate in the economy,” Davis added. “They don’t get to bring their goods and services to market in the same way. They don’t always get to participate.”

The economics of cutting off rural landlines delivers most of the benefits to providers, and assures decades of inferior service to consumers.

Economic market tests, including Return on Investment, that impact rural broadband availability will not disappear if AT&T and Verizon abandon their rural landline networks. While cost savings will be realized once rural wired infrastructure is decommissioned, there is no free market formula that would encourage either provider to pour investment funds into rural service areas. For the same reasons rural customers are broadband-challenged today, their comparatively smaller numbers and economic abilities will continue to fail investment metrics for innovative new services tomorrow.

The primary reason broadband speeds are lower in rural areas is inferior network infrastructure. Providers argue it does not make economic sense to invest in network upgrades to boost speeds for such a small number of customers. While wireless technology can be cheaper to deploy than the upkeep of a deteriorating landline network, it is not cheap or robust enough to deliver comparable broadband speeds now available in urban areas, especially as broadband usage continues to grow.

Verizon’s chief financial officer Fran Shammo admitted as much during remarks at the at JPMorgan Global Technology, Media and Telecom Conference in May:

If you recall, way back I guess about two years ago we did a trial with DirecTV in Erie, Pa., where we did broadband on the side of a house and offered a triple-play, if you will, which consisted of broadband, voice, and linear TV provided by DirecTV.

What we found was people were adoptive to the broadband; but because of the consumption of broadband through that LTE network, it was really detrimental to the spectrum and to the network performance. Because they used so much data, it soaked up so much of the spectrum.

So what we felt was LTE for broadband works in certain rural areas, but you can’t compete LTE broadband in those dense populated areas because you can’t — first of all, you can’t match the speed with a 50-megabit or a 100-megabit delivery between cable and FiOS and U-verse. And you literally don’t have enough spectrum to be able to use that much consumption.

So what we felt was by partnering with the cable companies, and delivering our LTE network with voice and data, and having that hardwired connection into the home was a better financial way to do it than trying to go LTE broadband. Because we just didn’t see where the spectrum could hold up to the volume that would be demanded.

Without rural cable companies to partner with, Verizon’s decision to move rural broadband to wireless guarantees rural Americans will not benefit from ongoing speed and capacity upgrades that are necessary to support the evolving Internet.

Powell

You and I may think America can do better providing fast and inexpensive broadband service. But a former chairman of the FCC now representing industry interests waved shiny keys of distraction to explain away why cable companies are still delivering Internet speeds slower than those found in Romania, Latvia, South Korea and Japan.

Michael Powell, the poster child of D.C.’s “revolving door” problem gave a well-compensated, rousing (yet fact-lacking) defense of an industry he was supposed to oversee in the public interest as the Bush Administration’s FCC chairman from 2001-2005.

“America is home to the world’s very best Internet companies,” said Michael Powell, chief executive of the National Cable and Telecommunications Assn. at the annual Cable Show in Washington, D.C. “We have worked hard to reach everyone, and now offer service to 93% of American homes. Despite our success, many people like to denigrate U.S. broadband by painting false comparisons to other countries. There are some nations doing very well, but it is foolish to compare countries like Latvia and France to the United States of America.”

Powell’s response is hardly a fact-filled defense for cable company broadband that still delivers slow speeds at high prices. Instead of attempting to call the statistics inaccurate, he tried to explain away the discrepancy by complaining people are ignoring the size of the country and its population.

In denial

Powell’s arguments might have some merit if the cable industry did not make a point of bypassing vast rural areas that do not meet Return on Investment tests. It is difficult to claim cable companies cannot deliver comparatively fast service in rural Iowa when they don’t offer any service at all.

The People’s Republic of China’s population is far larger than our own and is now a vital market for fiber optics manufacturers and suppliers. While some of America’s cable industry CEOs repeatedly argue America does not need fiber broadband or gigabit broadband speeds, the Chinese government has insisted that every new housing development be pre-wired with fiber that will easily and inexpensively supply those speeds in the near future.

Powell is correct to say speeds are improving in the United States, but there is growing evidence they are improving even faster overseas, especially in countries that are basing their primary telecommunication infrastructure on fiber optics, which can support enormously fast Internet speeds. As those fiber networks are lit, America will fall even faster in broadband rankings as long as cable operators continue to insist there is no demand or interest in the next generation of high-speed service. At the prices they charge, they may just prove their own “no demand”-argument, at least in this country.

Powell himself helped lay the foundation for America’s broadband duopoly by deregulating the industry with one hand while ignoring the need for competitive checks and balances with the other. At the end of Powell’s tenure, his greatest achievement was constructing an industry-friendly personal resumé to win lucrative employment as a telecommunications lobbyist.

Who better to speak with “authority” on telecommunications matters than a well-connected former FCC chairman that does the industry’s bidding? The NCTA hired him to deliver just the kind of defense cable operators hope Americans will believe.

Those that are aware of what broadband is like abroad don’t.

A Verizon Wireless upgrade that was supposed to fix bugs and introduce multi-screen, multi-window multitasking and new camera and image-related features to the popular Samsung Galaxy S3 instead has killed the phone’s 4G performance and dramatically decreased battery life. There are also reports some Verizon Wireless customers are finding themselves auto-enrolled in an unwanted caller ID with name add-on feature ($2.99/month) that leaves the phone connected to 3G or 4G service even when using Wi-Fi.

It was not an auspicious moment for Big Red, never fast with phone updates, particularly when Sprint customers earlier received a similar upgrade with no ill-effects.

Your editor spent two days last week attempting to mitigate Verizon’s mistakes, including several hours inside multiple Verizon Wireless store locations and talking to their national customer support center. In the end, it resulted in not one, but two factory refurbished phone exchanges and a $20 service credit for data service effectively disabled by a firmware upgrade.

This nightmare has a name: JZO54K.I535VRBMD3 — a software update so plagued with bugs, Verizon reportedly pulled it over the weekend after customers complained it ruined 4G wireless data service, along with the phone’s performance. The 128MB update has been available for about a week for those regularly checking their phones for software updates, and some customers began being prompted to install it last Friday.

So how can you tell if you are affected? Choose Settings -> About Device and check the “Build Number” visible at the bottom of the screen. If it ends in VRBMD3, you may be impacted. Not every customer is reporting problems, which may mean some phones are not affected or the performance degradation has been dismissed as a temporary reception problem or has only subtly affected low-bandwidth applications and has gone unnoticed.

Symptoms

1. Your wireless data signal strength meter on the phone suddenly shows much poorer reception than before the update;
2. Your battery life has declined significantly and the battery is very warm to the touch;
3. You have trouble loading web pages or accessing multimedia content with long buffering pauses or sudden loss of reception in places where signals used to be adequate;
4. Messaging services seem unstable with frequent disconnects;
5. Your phone drops from 4G to 3G service and stays connected at 3G (or less) speeds until you reset the phone;
6. Using “Speed Test” apps result in “Network Communication Issue” errors or extremely long test times with very high ping rates, very slow/inconsistent download speeds, and trouble measuring upload speeds;
7. You find icons for both Wi-Fi and 3G or 4G wireless service at the top of your phone at the same time;
8. You suddenly find your account billed for Caller ID plus Name service at $2.99 a month, despite not requesting this service.

Phillip “Verizon turned my 4G phone into a 1G phone” Dampier

The more of these symptoms you experience, the greater the chance Verizon’s update for the S3 has temporarily left your phone a shadow of its former self.

Verizon officially recognized the wireless connectivity problem May 31 when it released an internal bulletin acknowledging the software update is responsible. The company claims it has since stopped sending it out to S3 owners (we have not been able to confirm this ourselves).

Verizon blames Samsung for the defective update. Samsung blames Verizon, telling customers software upgrades are vetted, approved, and distributed exclusively by Verizon. Customers are left over a barrel until one or both companies assume responsibility and issue corrected firmware, which could take weeks.

Verizon Wireless’ technical support told Stop the Cap! the phone’s firmware is at the heart of the problem, and although it can sometimes get phones to be more tolerant of the software update, no number of factory resets, SIM card refreshes or replacements, or settings changes will fully correct the problem. Many customers can expect continued degraded 4G performance comparable to 3G speeds (or much worse) either because of slowed performance or an unstable connection until a fix is available.

The problem with multiple icons for both Wi-Fi and 3G or 4G service has to do with a single new app Verizon has forced on their customers. “Caller ID plus Name” was added to your app list in the latest update and is responsible for the dual data connections and reported instances of customers being auto-enrolled and billed for the service, even if they never specifically ran the app.

Bloatware is bad enough, but badly performing forced apps are worse. You can permanently disable the offending app and solve the double icon problem with this simple fix:

Enter Settings -> Application Manager, and select the “All” applications tab along the top. Find “Caller ID plus Name” in the list, select it, and you will see a button to “disable” the app. This may not resolve the problem of the app auto-enrolling you for a paid feature that costs $2.99 a month, so watch your bill.

Trouble

Affected customers with degraded service have several options:

1. If your phone is still under warranty, and most Galaxy S3 phones are, you can request a free handset replacement. Since Verizon created the problem, ask for a free shipping upgrade to overnight FedEx delivery. Your refurbished phone will arrive without a battery, SIM card, or back cover. Use the ones included with your original phone and your replacement handset should automatically activate. Immediately after powering up, your phone will offer a series of two or three Verizon firmware updates that you can defer. Until it can be verified Verizon has stopped pushing the defective update to customers, we recommend you avoid performing these firmware updates. If you don’t, and Verizon pushes the defective update to your replacement phone, it will likely perform no better than your original;
2. Request service credit for degraded/lost data service. Remember to also request credit, if applicable, for any Mobile Hotspot option, GPS travel, or other Verizon add-on that depends on a stable data network connection;
3. Indicate your displeasure that Verizon did not more thoroughly test the update before pushing it on customers.

Here are the suggested fixes Verizon may attempt on your phone, but we do not believe they correct the underlying problem — only updated software will:

• Removing the battery and “Refreshing/replacing the SIM card” may help refresh roaming rules or possibly correct a corrupted SIM card. Some customers reported this helped them get back data service they completely lost after the update, so it might help in certain cases, but probably will not correct the unstable 4G connection;
• Clearing the cache and cookies from the web browser is unlikely to have any effect on this problem;
• Changing the Mobile Networks setting to/from “Global” to “LTE/CDMA.” A few customers reported they got back some data service after toggling these options. The default on the Samsung Galaxy S3 running firmware from last fall was (and still remains) Global. We suspect the switch toggles the radio off and on, forcing a reconnect, which can bring back a 4G connection after the phone downshifts to 3G. But we don’t believe this will correct the speed/stability problem;
• A “factory reset” is frankly a waste of time. This will leave your phone with the same defective firmware. If you had symptoms before, you will likely still have them after resetting your phone.

If you are reluctant to part with your phone and avail yourself of any option other than requesting a service credit while Samsung and Verizon point fingers over who is responsible and and when a fix will arrive, you can make life with your phone a bit easier with these tips:

1. Stay on Wi-Fi when possible. Wi-Fi data performance was not affected by this software update;
2. Expect 30-40% reduced battery life. We suspect this (and the hot battery) is caused by the phone trying to deal with unstable 4G service, as if it was in a fringe reception zone. Keep a charger handy;
3. Try and get your phone to downshift to 3G by finding a weak reception spot (like a basement) and hope the phone drops (and remains) on 3G until it is rebooted. It appears 3G data speeds are not affected by the software bug;
4. Expect problems when using high bandwidth applications on Verizon’s LTE 4G service. We found video next to impossible to view on 4G, but audio streaming did seem to perform at lower bit rates.

Expect web browsing on 4G to be problematic on complex web pages, which may load incompletely. Try and do your browsing on mobile versions of websites or wait until you can find Wi-Fi.

There isn’t enough time to cover all the broadband stories that can affect you as a consumer, so we often Tweet stories from other sources on stories we just cannot cover here. Breaking news stories can also often get reported on our Twitter feed before they are published here in greater detail.

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