This SFR retail store is part of the Altice telecom empire

Two customer service representatives at Altice-owned SFR, a wireless carrier in France, may not have understood that the video they broadcast over Periscope showing the destruction of a difficult customer’s cell phone wasn’t just for their friends’ viewing pleasure.

France is buzzing today about the wider release of the video, showing the two employees complain that despite the fact the customer’s phone was being repaired, “he’s breaking our balls this morning. You know what we’ll do to his phone?”

The miracle of Periscope, which let’s you “explore the world through someone else’s eyes,” means everyone watching quickly found out as they obliterated the smartphone by repeatedly throwing it to the ground.

Their evil plan, shared with countless viewers, was first to prove it was not a dummy phone they were destroying, and then claim it was the condition of the phone as it was received.

[flv]http://www.phillipdampier.com/video/SFR Workers Destroy Customer Cell Phone Live on Periscope 3-31-16.mp4[/flv]

These two SFR employees apparently misunderstood that more than their friends would be watching Periscope as they destroyed a difficult customer’s cell phone. (French) (1:54)

After the first 10,000 views of the video-that-went-viral, SFR’s damage control team moved in… to rescue SFR’s reputation. The company tweeted it had identified the culprits, (later independently identified as employees of the SFR shopping center in Villeneuve d’Ascq) and they would be “severely punished.” Within hours, both men were fired.

But customers of this Altice-owned operation consider it business as usual. As Altice continues to fight for approval of its acquisition of Cablevision, its largest wireless holding in France is fighting to to be taken seriously by its dwindling customer base.

On Wednesday, the French Association of Telecom Users (AFUTT) released its 2015 Report on Complaints and Customer Dissatisfaction, and no company disappointed more than SFR.

Despite repeated assurances from Altice and SFR-Numericable executives that things were improving, the report found the exact opposite. SFR-Numericable (the combination wireless and cable operator) was the subject of 36% of all complaints against all French telecom companies among Internet users, despite only having a 21% market share. It was the only telecom operator in France to further decline in the ratings, for a second year in a row.

“We can assume the acquisition of SFR by [Altice-owned] Numericable resulted in some initial disruptions to the quality of their service,” the AFUTT report speculates. “The first reports of this appeared in 2014 and have continued and grown in 2015.”

That may be bring pause to New Yorkers and state regulators currently reviewing Altice’s application to acquire Cablevision. Several consumer groups and unions have specifically called out the management methods of Altice founder Patrick Drahi as responsible for many of the problems, noting his demands for forcible cost cutting, squeezing supplies, and exasperating unions have caused many employees to depart.

36% of all complaints about telecom companies in France are directed against Altice-owned SFR-Numericable, claims AFUTT.

Although tens of millions of Americans have pulled the plug on landlines in favor of their mobile phones, there is still a market for affordable landline phone service, especially if you hate talking on cellphones.

Today Google Fiber has announced Fiber Phone, a new $10 phone line with unlimited local/nationwide calling, Google Voice rates for international calls, and package of phone features and voicemail that includes reliable access to 911.

Customers signing up will get a portable Voice Over IP box similar in style to those supplied by cable companies and VoIP providers like Vonage. It is designed to connect to your home’s existing phones and your Google Fiber service, but can also be taken with you on trips.

“We’ll be introducing Fiber Phone in a few areas to start,” Google writes in a blog post. “Over time, we’ll roll out Fiber Phone as an option to residential customers in all of our Fiber cities. Once we bring the service to your area, you can sign up and get the service through a simple installation process. To stay updated on the latest, sign up here.”

Google Fiber has offered TV and broadband service in a “double play” package since its start, but steered clear of phone service due to the complexity of local, state and federal regulations, especially pertaining to 911 service. Google apparently has overcome those challenges.

Phillip Dampier: Putting Comcast’s David Cohen on a panel to protect the free and open Internet is like appointing Bernie Madoff to run the SEC.

I got whiplash this afternoon doing a double-take on the improbable announcement that Commerce Secretary Penny Pritzker has seen fit to appoint David Cohen, senior vice president and chief lobbyist at Comcast, to the first-ever Digital Economy Board of Advisors, which counts among its goals protecting a free and open Internet. He will be joined by AT&T’s chief lobbyist, the omnipresent Mr. James Cicconi.

Neither has much patience for Net Neutrality. Cicconi and Cohen have both lobbied Congress and regulators to keep Comcast and AT&T free from regulation and oversight, even as Comcast imposes usage-billing and data caps on a growing number of its customers, while exempting its own streaming video content from those caps. For its part, AT&T is exploring “zero rating” preferred content partners to escape the wrath of its own wireless data limits and advocates against community broadband competition.

The board will be co-chaired by Markle Foundation president Zoe Baird and Mitchell Baker, executive chairwoman of Mozilla.

“As we develop an agenda to help the digital economy grow and thrive, it is critical that we engage with those on the front lines of the digital revolution,” said Pritzker.

It apparently doesn’t matter that the front lines being explored are those of the allies and enemies of Net Neutrality. Putting David Cohen on the case to protect a free and open Internet is like appointing Bernie Madoff to head the Securities & Exchange Commission.

Consumers are, as usual, woefully under-represented on the panel. Only Marta Tellado, president and CEO of Consumer Reports, is likely to solely advocate for ordinary Internet users. The rest of the panel is made up of bankers, businesspeople (including the CEO of a home shopping channel), academia, think tanks and dot.com interests:

David “I’m crushing your unlimited Internet access” Cohen

• Karen Bartleson, president-elect of the Institute of Electrical and Electronics Engineers
• Greg Becker, president and CEO of Silicon Valley Bank and SVB Financial Group
• Austan Goolsbee, Robert P. Gwinn Professor of Economics at the University of Chicago, Booth School of Business
• Mindy Grossman, CEO and director of HSN
• Oisin Hanrahan, co-founder and CEO of Handy
• Sonia Katyal, Chancellor’s Professor of Law at the University of California at Berkeley School of Law
• James Manyika, director of the McKinsey Global Institute
• William Ruh, CEO of GE Digital and Chief Digital Officer for GE
• Brad Smith, president and chief legal officer at Microsoft
• Corey Thomas, president and CEO of Rapid7
• Susan Wojcicki, CEO of YouTube
• John Zimmer, co-founder and president of Lyft

Verizon’s loyal landline customers are subsidizing corporate expenses and lavish spending on Verizon Wireless, the company’s eponymous mobile service, while their home phone service is going to pot.

Bruce Kushnick from New Networks Institute knows Verizon’s tricks of the trade. He reads tariff filings and arcane Securities & Exchange Commission corporate disclosures for fun. He’s been building a strong case that Verizon has used the revenue it earns from regulated landline telephone service to help finance Verizon’s FiOS fiber network and the company’s highly profitable wireless service.

Kushnick tells the New York Post at least two million New Yorkers with (P)lain (O)ld (T)elephone (S)ervice were overcharged $1,000-$1,500 while Verizon allowed its copper wire network to fall into disrepair. Kushnick figures Verizon owes billions of dollars that should have been spent on its POTS network that provides dial tones to seniors and low-income customers that cannot afford smartphones and laptops.

Verizon’s copper network should have been paid off years ago, argues Kushnick, resulting in dramatically less expensive phone service. What wasn’t paid off has been “written off” by Verizon for some time, Kushnick claims, and Verizon customers should only be paying $10-20 a month for basic phone service. But they pay far more than that.

To ensure a proper rate of return, New York State’s Public Service Commission sets Verizon’s basic service charge of regulated phone service downstate at $23 a month. Deregulation has allowed Verizon to charge whatever it likes for everything else, starting with passing along taxes and other various fees that raise the bill to over $30. Customers with calling plans to minimize long distance charges routinely pay over $60 a month.

Unregulated calling features like call waiting, call forwarding, and three-way calling don’t come cheap either, especially if customers choose them a-la-carte. A two-service package of call waiting and call forwarding costs Verizon 2-3¢ per month, but you pay $7.95. Other add-on fees apply for dubious services like “home wiring maintenance” which protects you if the phone lines installed in your home during the Eisenhower Administration happen to suddenly fail (unlikely).

In contrast, Time Warner Cable has sold its customers phone service with unlimited local and long distance calling (including free calls to the European Community, Canada, and Mexico) with a bundle of multiple phone features for just $10 a month. That, and the ubiquitous cell phone, may explain why about 11 million New Yorkers disconnected landline service between 2000-2016. There are about two million remaining customers across the state.

New York officials are investigating whether Verizon has allowed its landline network to deteriorate along the way. Anecdotal news reports suggests it might be the case. One apartment building in Harlem lost phone and DSL service for seven months. Another outage put senior citizens at risk in Queens for weeks.

“They don’t care if we live or die,” one tenant of a senior living center told WABC-TV.

Verizon claims Kushnick’s claims are ridiculous.

“There is absolutely no factual basis for his allegations,” the company said.

[flv]http://www.phillipdampier.com/video/WABC New York Seniors vent against Verizon after phone service outage 3-9-16.flv[/flv]

WABC’s “7 On Your Side” consumer reporter Nina Pineda had to intervene to get Verizon to repair phone service for a senior living center that lasted more than a month. (2:50)

The worst enemy of some advocacy groups writing guest editorial hit pieces against municipal broadband is: facts.

Raul Lopez is the founder and executive director for Latinos for Tennessee, a 501C advocacy group that reported $0 in assets, $0 in income, and is not required to file a Form 990 with the Internal Revenue Service as of 2014. Lopez claims the group is dedicated to providing “Latinos in Tennessee with information and resources grounded on faith, family and freedom.”

But his views on telecom issues are grounded in AT&T and Comcast’s tiresome and false talking points about publicly owned broadband. His “opinion piece” in the Knoxville News Sentinel was almost entirely fact-free:

It is not the role of the government to use taxpayer resources to compete with private industry. Government is highly inefficient — usually creating an inferior product at a higher price — and is always slower to respond to market changes. Do we really want government providing our Internet service? Government-run health care hasn’t worked so well, so why would we promote government-run Internet?

Phillip Dampier: Corporate talking point nonsense regurgitated by Mr. Lopez isn’t for the good of anyone.

Lopez’s claim that only private providers are good at identifying what customers want falls to pieces when we’re talking about AT&T and Comcast. Public utility EPB was the first to deliver gigabit fiber to the home service in Chattanooga, first to deliver honest everyday pricing, still offers unlimited service without data caps and usage billing that customers despise, and has a customer approval and reliability rating Comcast and AT&T can only dream about.

Do the people of Chattanooga want “the government” (EPB is actually a public utility) to provide Internet service? Apparently so. Last fall, EPB achieved the status of being the #1 telecom provider in Chattanooga, with nearly half of all households EPB serves signed up for at least one EPB service — TV, broadband, or phone service. Comcast used to be #1 until real competition arrived. That “paragon of virtue’s” biggest private sector innovation of late? Rolling out its 300GB usage cap (with overlimit fees) in Chattanooga. That’s the same cap that inspired more than 13,000 Americans to file written complaints with the FCC about Comcast’s broadband pricing practices. EPB advertises no such data caps and has delivered the service residents actually want. Lopez calls that “hurting competition in our state and putting vital services at risk.”

Remarkably, other so-called “small government” advocates (usually well-funded by the telecom industry) immediately began beating a drum for Big Government protectionism to stop EPB by pushing for a state law to ban or restrict publicly owned networks.

Lopez appears to be on board:

Our Legislature considered a bill this session that would repeal a state municipal broadband law that prohibits government-owned networks from expanding across their municipal borders. Thankfully, it failed in the House Business and Utilities Subcommittee, but it will undoubtedly be back again in future legislative sessions. The legislation is troubling because it will harm taxpayers and stifle private-sector competition and innovation.

Or more accurately, it will make sure Comcast and AT&T can ram usage caps and higher prices for worse service down the throats of Tennessee customers.

EPB’s broadband pricing. Higher discounts possible with bundling.

Lopez also plays fast and loose with the truth suggesting the Obama Administration handed EPB a $111.7 million federal grant to compete with Comcast and AT&T. In reality, that grant was for EPB to build a smart grid for its electricity network. That fiber-based grid is estimated to have avoided 124.7 million customer minutes of interruptions by better detection of power faults and better methods of rerouting power to restore service more quickly than in the past.

EPB provides municipal power, broadband, television, and telephone service for residents in Chattanooga, Tennessee

Public utilities can run smart grids and not sell television, broadband, and phone service, leaving that fiber network underutilized. EPB decided it could put that network to good use, and a recent study by University of Tennessee economist Bento Lobo found EPB’s fiber services helped generate between 2,800 and 5,200 new jobs and added $865.3 million to $1.3 billion to the local economy. That translates into $2,832-$3,762 per Hamilton County resident. That’s quite a return on a $111.7 million investment that was originally intended just to help keep the lights on.

So EPB’s presence in Chattanooga has not harmed taxpayers and has not driven either of its two largest competitors out of the city.

Lopez then wanders into an equally ridiculous premise – that minority communities want mobile Internet access, not the fiber to the home service EPB offers:

Not all consumers access the Internet the same way. According to the Pew Research Center, Hispanics and African-Americans are more likely to rely on mobile broadband than traditional wire-line service. Indeed, minority communities are even more likely than the population as a whole to use their smartphones to apply for jobs online.

[…] Additionally, just like people are getting rid of basic at-home telephone service, Americans, especially minorities, are getting rid of at-home broadband. In 2013, 70 percent of Americans had broadband at home. Just two years later, only 67 percent did. The decline was true across almost the entire demographic board, regardless of race, income category, education level or location. Indeed, in 2013, 16 percent of Hispanics said they relied only on their smartphones for Internet access, and by 2015 that figure was up to 23 percent.

That drop in at-home broadband isn’t because fewer Americans have access to wireless broadband, it’s because more are moving to a wireless-only model. The bureaucracy of government has trouble adapting to changes like these, which is why government-owned broadband systems are often technologically out of date before they’re finished.

But Lopez ignores a key finding of Pew’s research:

In some form, cost is the chief reason that non-adopters cite when permitted to identify more than one reason they do not have a home high-speed subscription. Overall, 66% of non-adopters point toward either the monthly service fee or the cost of the computer as a barrier to adoption.

So it isn’t that customers want to exclusively access Internet services over a smartphone, they don’t have much of a choice at the prices providers like Comcast and AT&T charge. Wireless-only broadband is also typically usage capped and so expensive that average families with both wired broadband and a smartphone still do most of their data-intensive usage from home or over Wi-Fi to protect their usage allowance.

EPB runs a true fiber to the home network, Comcast runs a hybrid fiber-coax network, and AT&T mostly relies on a hybrid fiber-copper phone wire network. Comcast and AT&T are technically out of date, not EPB.

Not one of Lopez’s arguments has withstood the scrutiny of checking his claims against the facts, and here is another fact-finding failure on his part:

Top EPB officials argue that residents in Bradley County are clambering for EPB-offered Internet service, but the truth is Bradley County is already served by multiple private Internet service providers. Indeed, statewide only 215,000 Tennesseans, or approximately 4 percent, don’t have broadband access. We must find ways to address the needs of those residents, but that’s not what this bill would do. This bill would promote government providers over private providers, harming taxpayers and consumers along the way.

Outlined section shows Bradley County, Tenn., east of Chattanooga.

The Chattanoogan reported it far differently, talking with residents and local elected officials on the ground in the broadband-challenged county:

The legislation would remove territorial restrictions and provide the clearest path possible for EPB to serve customers and for customers to receive high-speed internet.

State Rep. Dan Howell, the former executive assistant to the county mayor of Bradley County, was in attendance and called broadband a “necessity” as he offered his full support to helping EPB, as did Tennessee State Senator Todd Gardenhire.

“We can finally get something done,” Senator Gardenhire said. “The major carriers, Charter, Comcast and AT&T, have an exclusive right to the area and they haven’t done anything about it.”

So while EPB’s proposed expansion threatened Comcast and AT&T sufficiently to bring out their lobbyists demanding a ban on such expansions in the state legislature, neither company has specific plans to offer service to unserved locations in the area. Only EPB has shown interest in expansion, and without taxpayer funds.

The facts just don’t tell the same story Lopez, AT&T, and Comcast tell and would like you to believe. EPB has demonstrated it is the best provider in Chattanooga, provides service customers want at a fair price, and represents the interests of the community, not Wall Street and investors Comcast and AT&T listen to almost exclusively. Lopez would do a better job for his group’s membership by telling the truth and not redistributing stale, disproven Big Telecom talking points.