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After Trump Administration Tax Breaks, AT&T Launches a Wave of Layoffs Affecting Thousands

Phillip Dampier January 31, 2019 AT&T, Public Policy & Gov't Comments Off on After Trump Administration Tax Breaks, AT&T Launches a Wave of Layoffs Affecting Thousands

AT&T began laying off thousands of workers Monday, mostly targeting highly skilled and highly paid long-time AT&T employees nearing retirement age.

Many of those laid off this week worked in the company’s wireline division, which supplies landline phone service, fiber and copper-based internet service for residential and commercial customers, and AT&T’s Foundry “innovation” centers. Other affected units include AT&T Technology & Operations, Mobility, Construction and Financing, Entertainment Group, Global Supply, Finance, and DTV (DirecTV).

Many of those targeted for layoffs were approaching 30 years with AT&T, part of an important benchmark allowing employees to retire with maximum benefits. Those who did not quite make it will be offered two weeks pay for every year of service in severance instead, capped at a maximum of six months pay. Affected employees must leave AT&T by Feb. 18 or accept, when available, an alternate position at the company if one can be located within 50 miles of the current job location.

Last year, AT&T claimed that as a result of the passage of significant corporate tax cuts signed into law by President Trump, the company would hire at least 7,000 new workers and invest up to $1 billion in its business. AT&T claims it has already exceeded those commitments, hiring more than 20,000 new employees last year and more than 17,000 the year before, although the company would not confirm if those workers were directly hired by AT&T and in the United States. The Communications Workers of America reports that AT&T eliminated 10,700 union jobs from its payroll in 2018, with at least 16,000 employees replaced by offshore workers. The company had 273,210 employees as of August 2018.

In a leaked internal memo from AT&T’s vice president of technology and operations, Jeff McElfresh warned AT&T would be laying off a significant number of workers this year. The company is seeking a “geographic rationalization” of its current employees to cut a “surplus” of workers.

“To win in this new world, we must continue to lower costs and keep getting faster, leaner, and more agile,” McElfresh told employees. “This includes reductions in our organization, and others across the company, which will begin later this month and take place over several months.”

The wife of one “surplus” worker described how an AT&T manager ended her husband’s 29-year career at AT&T in a scripted, four-minute phone call.

“My husband had 29 years with the company. [He] has been a fiber and copper splicer, engineer, ran a construction crew, and has been an instructor as the subject matter expert in over 50 courses for the last 18 years,” she shared. “His boss called him this morning […] and in less than four minutes told him he was out. Twenty-nine years and you get a call that takes less than 4 minutes?”

Some workers unaffected by the current round of layoffs fear that AT&T gutted some of its most experienced and qualified talent, and worries about the future competence of AT&T to manage its business.

“We lost so many people throughout our work groups that there is no way I can see us being able to support the systems going forward. Can’t happen,” one employee shared. “We even lost people that were in one deep slots without any thought about the impact. Some positions that flat out require multiple people just to support the existing volume of support work and new projects have been reduced to one or less headcount.”

North Carolina’s Goal to be the First Giga State is Improbable With Current State Legislature

Solving America’s rural broadband crisis will take a lot more than demonstration projects, token grants, and press releases.

Since 2008, Stop the Cap! has witnessed media coverage that breathlessly promises rural broadband is right around the corner, evidenced by a new state or federal grant to build what later turns out to be a middle mile or institutional fiber optic network that is strictly off-limits to homes and businesses. Politicians who participate in these press events tend to favor publicity over performance, often misleading reporters and constituents about just how significant a particular project will be towards resolving a community’s broadband challenges. Much of the time, these projects turn out to serve a very limited number of people or only fund part of a broadband initiative.

Officials last week said they are hoping to make North Carolina “the first ‘giga-state,’ with broadband access for all its residents.” But to realistically achieve that goal, nothing short of an expenditure of hundreds of millions of dollars will be required to realistically achieve that goal statewide.

A decade ago, rural broadband progressed in North Carolina, as communities transitioned away from traditional tobacco and textile businesses to the information and technology economy. To assure a foundation for that economic shift, several communities identified their local substandard (or lacking) broadband as a major problem. The state’s phone and cable companies at the time — notably Time Warner Cable, AT&T, and CenturyLink, often proved to be obstacles by refusing to upgrade networks in the state’s smaller communities. Some cities decided to stop relying on what the broadband companies were willing to offer and chose to construct their own modern, publicly owned broadband network alternatives, open to residents and businesses. A handful of cities in North Carolina went a different direction and acquired a dilapidated and bankrupt cable system and invested in upgrades, hoping cable broadband improvements would help protect their communities’ competitiveness to attract digital economy jobs.

That progress largely stalled after Republicans took control of the state legislature in 2011 and passed a draconian municipal broadband law that effectively banned public broadband expansion. Most of those backing the measure took lucrative campaign contributions from the state’s dominant phone and cable companies. One, Sen. Marilyn Avila, worked so closely with Time Warner Cable’s lobbyists, the resulting bill was effectively drafted by the state’s largest cable company. For that effort, she was later wined and dined by cable lobbyists at a celebration dinner in Asheville.

To be fair, some North Carolina cities are experiencing a broadband renaissance. Charlotte, Raleigh, Greensboro, Cary, Durham, Winston-Salem, and Chapel Hill will have a choice of providers for gigabit service. Google has installed fiber in some of these cities while AT&T and Charter lay down more fiber optics and introduce upgrades to support gigabit speeds.

Things are considerably worse outside of large cities.

In North Carolina, 585,000 people live in areas where their wired connections cannot reach the FCC’s speed definition of broadband — 25 Mbps, and another 145,000 live without any notion of broadband at all.

Bringing all of North Carolina up to at least the nation’s minimum standard for broadband will not be cheap, and politicians and public policy groups must be realistic about the real cost to once and for all resolve North Carolina’s rural broadband challenges. Where the money comes from is a question that will be left to state and local officials and their constituents. Some advocate only tax credit-inspired private funding, others support a public-private partnership to share costs, while still others believe public money should be only spent on publicly owned, locally developed broadband networks. Regardless of which model is proposed, without a specific and realistic budget proposal to move forward, the public will likely be disappointed with the results.

The Facts of Broadband Life

There is a reason rural areas are underserved or unserved. America’s broadband providers are primarily for-profit, investor-owned companies. They are not public servants and they respond first to the interests of their shareholders. Customers might come in second. When a publicly owned utility or co-op is created, in most cases it is the result of years of frustration trying to get a commercial provider to serve a rural or high cost area. Public projects are usually designed to serve almost everyone, even though it will likely take years for construction costs to be recovered. Investor-owned companies are not nearly as patient, and usually demand a Return On Investment formula that offers a much shorter window to recover costs. For broadband, adequately populated areas that can be reached affordably and attract enough new customers to recover the initial investment will get service, while those areas that cannot are left behind. The two populations most likely to fail the ROI test are the urban poor that may not be able to afford to subscribe and rural residents a company claims it cannot afford to serve. Many early cable TV franchise agreements insisted on ROI formulas that allowed companies only to skip areas with inadequate population density, not inadequate income, which explains why cable service is available in even the poorest city neighborhoods, while a wealthy resident in a rural area goes unserved.

Today, most cable and phone companies install fiber optic infrastructure most commonly in new housing developments or previously unwired business parks, while allowing existing copper wire infrastructure already in place elsewhere to remain in service. Some companies, including AT&T and Verizon, have made an effort in some areas to replace copper infrastructure with fiber optics, but in most cases, their rural service areas remain served by copper wiring installed decades ago. As a result, most rural residents end up with DSL internet from the phone company, often at speeds of 5 Mbps or less, or no internet service at all. Neither of these phone companies, much less independent telcos like CenturyLink and Frontier, have shown much interest in scrapping copper wiring for fiber optics in rural service areas. There is simply no economic case that shareholders will accept for costly upgrades that will deliver little, if any, short-term benefits to a company’s bottom line. That reality has led some communities to try incentivizing commercial providers to make an investment anyway, usually with a package of tax breaks and cost sharing. But many communities have achieved better results even faster by launching their own fiber broadband services that the public can access.

Some states with large rural areas have recognized that solving the rural broadband problem will be costly — almost always more costly than first thought. Such projects often take longer than one hoped, and will require some form of taxpayer matching funds, municipal bonds, public buy-in, or a miraculous sudden investment from a generous cable or phone company. In states with municipal broadband bans, like North Carolina, politicians who support such restrictions believe the cable and phone companies will spontaneously solve the rural internet problem on their own. Such beliefs have stalled rural broadband improvements in many of the states ensnared by such laws, usually tailored to protect a duopoly of the same phone and cable companies that have historically refused to offer adequate broadband service to their rural customers.

Challenges for North Carolina

(Courtesy: North Carolina League of Municipalities – Click image for more information)

North Carolina is a growing state, so a small part of the rural broadband problem may work itself out as population densities increase to a level that crosses that critical ROI threshold. But most rural communities will be waiting years for that to happen. Intransigent phone and cable companies are unlikely to respond positively to local officials seeking better service if it requires a substantial investment. As industry lobbyists will tell you, it is not the job of government to dictate the services of privately owned companies. The Republican majority in North Carolina’s legislature underlines that principle regularly in the form of legislation that reduces regulation and oversight. Many, but not all of those Republicans have also taken a strong strand against the idea of municipalities stepping up to resolve their local broadband challenges by working around problematic cable and phone companies. The ideology that government should never be in the business of competing against private businesses usually takes precedence.

Almost a decade ago, the cable and phone companies of North Carolina made three failed attempts to enshrine this principle in a new statewide law that would limit municipal broadband encroachment to such an extent it made future projects unviable. They succeeded in passing a law on their fourth attempt in 2011, the same year Republicans took control in the state legislature.

Today, Republicans still control the legislature with a Democratic governor providing some checks and balances. Why is this important? Because for North Carolina to achieve its goal, it will realistically need a combination of bipartisan support for rural broadband funding and an end to the municipal broadband ban.

Where is the money?

Although North Carolina wants to be America’s first “gigabit” state, New York is the first to at least claim full broadband coverage across the entire state. That did not and could not happen without a multi-year spending program. Recently, North Carolina’s Department of Information Technology launched a $10 million GREAT Grant program to provide last-mile connectivity to the most economically distressed counties in the state. While a noble effort, and one no doubt limited by the availability of funds to spend on broadband expansion, it is a drop in a bucket of water thrown into a barely filled pool.

To put this problem in better context, New York’s goal of full broadband coverage (which in our view remains incomplete) required not only $500 million acquired from settlement proceeds won by the state after suing Wall Street banks for causing the Great Recession, but another $170 million in federal broadband expansion funds that were expected to be forfeited because Verizon — the state’s largest phone company — was not interested in the money or upgrading their DSL service upstate.

Big Money: New York’s rural broadband funding initiative spent hundreds of millions to attack the rural broadband problem. Gov. Andrew Cuomo outlines funding for just one of several rounds of broadband funding.

Last year, Gov. Andrew Cuomo detailed success for his Broadband for All program by pointing out the state spent $670 million to upgrade or introduce broadband service to 2.42 million locations in rural New York, giving the state 99.9% coverage. That amounts to an average grant of $277 per household or business. In turn, award recipients — largely incumbent phone and cable companies, had to commit to matching private investments. For that state money, the provider had to typically offer at least 100 Mbps service, except in the most rural parts of the state, where a lower speed was acceptable.

North Carolina has 585,000 underserved or unserved locations. Just by using New York’s average $277 grant, North Carolina will have to spend approximately $202 million with similar matching funds from private companies to reach those locations. In fact, it is assuredly more than that because North Carolina’s goal is gigabit speed, not 100 Mbps. Also, New York declared ‘mission accomplished’ while stranding tens of thousands of expensive or difficult to reach residents with subsidized satellite internet access. That offers nothing close to gigabit speed. A more realistic figure for North Carolina in 2019 could be as high as $250-300 million in taxpayer dollars — combined with similar private matching funds to convince AT&T, Charter, CenturyLink and others that the time is right to expand into more rural areas. But as New York discovered, there will be areas in the state no company will bid to serve because the money provided is inadequate.

If the thought of handing over tax dollars to big phone and cable companies bothers you, the alternative is helping communities start and run their own networks in the public interest. Except private providers routinely retaliate with well-funded campaigns of fear, uncertainty and doubt over those projects, and they become political footballs to everyone except their customers, who generally appreciate the service and local accountability.

If North Carolina’s state government relies on a series of $10 million appropriations for grants, it will likely take at least 20 years to wire the state. Stop the Cap! agrees with the goals North Carolina has set to deliver ubiquitous, gigabit-fast broadband. But those goals will be difficult to reach in the present political climate. Republicans in the state legislature approved reductions in the corporate income tax rate to 2.5 percent, down from 3 percent last year, and the personal income tax rate drops to 5.25 percent from 5.499 percent. North Carolina’s latest budget sets aside $13.8 billion for education, $3.8 billion for Medicaid, $3 billion in new debt for road maintenance, and $31 million in grants to attract the film industry to shoot their projects in the state.

It is likely any appropriation significant enough to actually deliver on the commitment to provide total broadband coverage will have to be spread out over several years, unless another funding mechanism can be identified. That assumes the Republicans in the state legislature will be receptive to the idea, which remains an open question.

Grover Norquist’s Americans for Tax Reform Slams Another Public Broadband Project

Americans for Tax Reform’s leader Grover Norquist is continuing a campaign against municipally owned public broadband projects, labeling them “really stupid ideas” that are best left in the hands of private companies like Comcast, AT&T, Verizon and Charter.

Norquist’s group is one of many Koch Brothers’ funded groups butting into the local public discussion about Traverse City Light & Power’s new fiber-to-the-premises project, which would deliver a gigabit fiber optic alternative to the area’s dominant phone and cable companies. TCL&P already provides electric service in Traverse City, and is considering introducing fiber broadband for 2,300 downtown customers. As the local utility works towards developing a business plan, local officials are suddenly receiving opposition mailers and phone calls from a variety of national groups with a coordinated message against “government-owned networks.”

None of the groups contacting city officials will reveal their funding sources, but there are strong suspicions the coordinated effort is designed to protect the city’s existing duopoly, run by Charter Spectrum and AT&T.

The Record-Eagle notes city officials and residents are receiving professionally printed postcards and other mailers some consider “propaganda.” Not every letter of opposition generated by these campaigns appears to be genuine. Traverse City Commissioner Amy Shamroe told the newspaper the city studies incoming opposition emails and calls, and found many are questionable form letters, including a few that claim to be from “Firstnametest Lastnametest.”

Shamroe

“I encourage dissenting opinions, but I like them to come from real people,” she said.

Although some genuine Traverse City residents are telling local officials they oppose government competition with private businesses, Shamroe says a much larger number of people support the project and are frustrated with its slow pace.

Norquist argues public broadband believers are being snookered into supporting “really stupid ideas” that will ultimately require taxpayer bailouts or come with hidden fees and taxes. Norquist claims he is not aware of any successful municipal broadband project, despite the fact there are dozens of successful projects that have received strong support in their communities, especially when providers offer services that cable and phone companies will not deliver. In Michigan, Holland BPW (a municipal utility), Sebewing, and Midwest Connections Electric Co-Op, are all successfully providing fiber broadband services to their customers.

Much of the opposition to community broadband is designed to muddy the waters about such projects, using opposition mass-mailings and paid staffers to argue such broadband projects are risky at best, failures at worst. Their opposition is backed up with articles and studies that claim to prove government-run broadband has been a national fiasco, although most of their sources and studies have undisclosed direct or indirect ties to the same cable and phone companies that would face direct competition from a community run provider.

In the past, local officials have often been unprepared to deal with professionally-coordinated opposition efforts, but Traverse City officials are ready to deal with the opposition’s talking points, and have shared a detailed FAQ about the project.

One local resident brought many of those talking points up at an association meeting, and Shamroe was prepared to answer them point by point. The resident recognized he was “blindsided” by the opposition’s distorted representations about the project, and thanked Shamroe for addressing his concerns.

Ironically, Norquist told the newspaper he was particularly opposed to local utilities and governments using excess revenue earned from overcharging utility customers to fund fiber optic competition, arguing that if a provider is overcharging you for a service and making excess profits from it, “they should give you the money back.”

That is an argument Norquist has never brought to the attention of AT&T, Charter, Comcast, and Verizon.

Rural New Yorkers Left Behind by Gov. Cuomo’s ‘Broadband for All’ Program

Tens of thousands of rural New York families were hopeful after Gov. Andrew Cuomo announced in 2015 his intention to bring true broadband to every corner of the state by the year 2018. At the time, it was the largest and most ambitious broadband investment of any state in the country, putting $670 million in lawsuit settlement money and rural broadband funds from the FCC on the table to build out rural broadband service other states only talk about.

But for many rural New Yorkers, Gov. Cuomo’s program was a failure that could lock in substandard internet service (or no service at all) for years. What began as a 100% broadband commitment later evolved into 99.9% (then 98% in another estimate) after state officials learned $670 million was not enough to convince providers to share the cost of extending their networks to the most rural of the rural as well as those unlucky enough to live just a little too far down the road to make extending cable broadband worthwhile. But the governor proclaimed mission accomplished, and as far as the Cuomo Administration is concerned, the rural broadband issue has been resolved.

“There were a lot of tax dollars that were flipped and the governor has said, ‘Internet for everybody. Everybody will have internet.’ Well, that’s not the case. We’re not seeing that and those were his promises, not mine, but I voted for that money. A lot of other members did too,” Sen. Rob Ortt (R-North Tonawanda) told WBFO radio last year.

Ortt wants to know where the money is going and who exactly is getting it, and proposed legislation requiring annual reports from the Empire State Development Corporation detailing expenditures and disclosing the formula used to determine who gets true broadband service, and who does not.

For those not getting high-speed wireless or wired connections, the state has either offered nothing or dreaded satellite internet service, paying HughesNet $14,888,249 to supply discounted satellite equipment Hughes itself routinely discounts as a marketing promotion on their own dime.

For rural residents learning HughesNet was their designated future provider, many experienced with satellite internet over the last decade and hating nearly every minute of it, it was “thanks for nothing.”

“The governor pulled the rug right out from under us,” Ann told Stop the Cap! from her home near Middle Granville in Washington County, just minutes away from the Vermont border. “I have kids that require internet access to finish research and send in homework assignments. Internet service is not an option, and my kids’ grades are suffering because they have to complete homework assignments in the car or in a fast food restaurant or coffee shop that has Wi-Fi.”

Ann used HughesNet before, and canceled it because service went out whenever snow arrived in town.

“I thought the governor promised 100 Mbps service and HughesNet can’t even provide 25 Mbps,” she claims. “If you get 5 Mbps on a clear summer’s day, you are doing okay. In winter, reading email is the only thing that won’t frustrate you. It’s slow, slow, slow.”

Gov. Andrew Cuomo announcing rural broadband initiatives in New York.

Nick D’Agostino brought his family to a new home an hour northeast of Syracuse when he got a new job. He was counting on the governor’s commitment to bring wired internet access to a home that used to have Verizon DSL, but no longer does after Verizon’s wired infrastructure deteriorated to the point where the company stopped offering the service to new customers like him arriving in the neighborhood. D’Agostino had to spend hours researching the state’s Broadband Program Office website to find out which provider was going to be supplying his census block (neighborhood) with 100 Mbps internet. He found HughesNet instead.

“It’s a kick in the pants because we have a lot of experience with HughesNet and Exede and neither came close to meeting their advertising claims,” he told Stop the Cap! “Exede was often unusable and a horrible company to deal with. HughesNet has a new ‘Gen 5’ service that is capable of DSL speeds, but comes with a low data cap and speed throttling.”

D’Agostino warns that New York made a terrible choice relying on satellite internet, even though HughesNet’s latest fleet of satellites has offered improvement over HughesNet a decade ago.

“The problem is HughesNet customers in a geographic area all share the same spot beam — a regionally targeted satellite signal that serves a specific state or region,” D’Agostino said. “When we lived in North Carolina, the population growth in rural areas meant a lot more satellite customers were sharing the same spot beam, and speeds plummeted, especially after Netflix, Hulu, and cord cutting took off. Nothing eats bandwidth like streaming video, which is why you can subscribe to their 50 GB allowance package and be over that limit after a single week.”

D’Agostino fears that tens of thousands of additional satellite users will dramatically slow down HughesNet across upstate New York unless the company finds a way to get more shared bandwidth to serve the state’s rural broadband leftovers.

“That usually means, ‘wait until the next generation of satellites are launched,’ something nobody should have to wait for,” D’Agostino said.

The obvious solution for D’Agostino is to convince Charter Spectrum, the nearest cable provider, to extend its lines down his street. The cable company agreed, if he paid an $88,000 engineering, pole, and installation fee.

“That is not going to happen, even if we got the dozen or so neighbors in our position to split the cost,” he said. “This is why Cuomo’s program is a flop. It turns out close to $700 million is not enough, and they probably always knew there would be people they could never economically serve because they are miles and miles from the nearest DSL or cable connection. But if the electric and phone companies are compelled to offer service, the same should be true for internet access.”

D’Agostino believes rural New Yorkers left behind need to organize and make their voices heard.

“They keep saying we are .1% of New York, but I’ve seen plenty of rural town supervisors and other local officials across upstate New York complain they have all been left behind, and that decision will cost their towns good education, jobs, competitive agribusiness, and services online that everyone assumes people can easily access,” he said. “Clearly the state is not telling the truth about how many are being internet-orphaned. There have been three rounds of broadband funding in New York. It is time for a fourth round, finding either tax breaks or funding to get existing providers to reach more areas like mine that are less than a mile from a Spectrum customer.”

Ann shares that sentiment, and adds that Vermont is looking for ways to get internet to its rural residents as well.

“We’re at the point where companies or co-ops already offering service are probably the quickest and easiest option to solve the rural internet crisis, but they are not going to pay to do it if they are not required to,” she said. “We have taxes and surcharges on our phone bill now that are supposed to pay for internet expansion, but the amounts are too small to get the job done I guess. Perhaps it is time to revisit this, because 99.995% is better than 99.9% and satellite internet should be the last resort for people living in a cottage miles from anyone else, not for people who can be in town in less than a five-minute drive.”

A familiar story for any rural resident trying to get internet access to their rural home. But there is a small silver lining. HughesNet’s newest generation of satellites has provided a modest improvement that is often better than rural DSL. (10:19)

Questions Grow Over CenturyLink’s Massive 2-Day December Outage

Phillip Dampier January 22, 2019 CenturyLink, Consumer News, Public Policy & Gov't, Video 1 Comment

What do an emergency operations center in Cochise County, Ariz., Colorado hospitals, the Idaho Bureau of Corrections, and many 911 call centers across Massachusetts have in common? They were all brought down by a two-day nationwide CenturyLink outage from Dec. 27-28 that also resulted in internet outages for tens of thousands of CenturyLink’s residential customers. The cause? CenturyLink blamed a single, faulty third-party network management card in Denver for disrupting services for CenturyLink and other phone companies, notably Verizon, from Alaska to Florida.

Hours after outage began, two days after Christmas, CenturyLink issued a general statement:

“CenturyLink experienced a network event on one of our six transport networks beginning on December 27 that impacted voice, IP, and transport services for some of our customers. The event also impacted CenturyLink’s visibility into our network management system, impairing our ability to troubleshoot and prolonging the duration of the outage.”

That “network event” caused serious disruptions to critical services in 37 states, including 911, according to Brian Kyes, president of the Massachusetts Major City Chiefs of Police Association.

“This is affecting 911 (wireline & wireless) delivery to most of Massachusetts,” Kyes said in a statement during the outage to the Boston Herald. “We have heard from MEMA that this issue may also affect some landlines but I have not heard of any specific situations or communities that have been impacted. We are advising all police and fire chiefs to test their local 911 systems and notify their residents of potential issues by reverse 911, social media or any other means that they have at their disposal. The interruption in service may depend on a particular phone carrier and the information that we have is that it may be intermittent.”

CenturyLink outages on Dec. 27, 2018. (Image: Downdetector.com)

The disruptions affected much of Massachusetts — a state served primarily by Verizon Communications, because CenturyLink is a major commercial services vendor inside and outside of its local landline service areas and supplies some connectivity services to Verizon, mostly for wireless customers.

ATM networks also went down in certain parts of the country. CenturyLink is one of many vendors providing data connectivity between the cashpoint machines and several banking institutions.

Also impacted, the Idaho Department of Corrections, including inmate phone systems, and the Idaho Department of Education, which lost the ability to make or receive calls.

Consumers also noticed their internet connections were often down or sporadic in some locations, primarily because CenturyLink’s backbone network became saturated with rogue packets.

The Denver Post presented a more detailed technical explanation about the outage:

CenturyLink said the [defective] card was propagating “invalid frame packets” that were sent out over its secondary network, which controlled the flow of data traffic.

“Once on the secondary communication channel, the invalid frame packets multiplied, forming loops and replicating high volumes of traffic across the network, which congested controller card CPUs (central processing unit) network-wide, causing functionality issues and rendering many nodes unreachable,” the company said in a statement.

Once the syndrome gets going, it can be difficult to trace back to its original source and to stop, a big reason networks are designed to isolate failures early and contain them.

“We have learned through experience about these different types of failure modes. We build our systems to try and localize those failures,” said Craig Partridge, chair of the computer science department at Colorado State University in Fort Collins and a member of the Internet Hall of Fame. “I would hope that what is going on is that CenturyLink is trying to understand why a relatively well-known failure mode has bit them.”

The Federal Communications Commission also expects answers to some questions, opening another investigation of the phone company. In 2015, CenturyLink agreed to pay a $16 million settlement to the federal agency after a seven-state outage in April 2014.

Pai

FCC Chairman Ajit Pai said the agency would once again take a look at CenturyLink, focusing on disruptions to emergency services.

“When an emergency strikes, it’s critical that Americans are able to use 911 to reach those who can help,” Pai said in a statement. “This inquiry will include an examination of the effect that CenturyLink’s outage appears to have had on other providers’ 911 services.”

A retired manager at Qwest, a former Baby Bell now owned by CenturyLink, strongly criticized CenturyLink’s lack of communications with customers and an apparent lack of network redundancy.

“For a company in the communication business, they sure failed on this,” said Albuquerque resident Sam Martin. “I participated on the Qwest Disaster Recovery teams, and I do not recall ever having the network down for this kind of time and certainly never the 911 network. The 911 network should never have been down. The lack of this network can contribute to delays in rescue and fire saving lives.”

Martin is dubious about CenturyLink’s explanation for the network outage, suggesting a defective network card may be only a part of the problem.

“The explanations given so far are not valid,” Martin said. “The public may not be aware of it, but the communication network has redundancy and for essential services like inter-office trunking and 911 calls, there are duplicate fiber optic feeds – “rings” that duplicate the main circuit in another path – and switching equipment to these locations so that they may be switched electronically and automatically upon failure to a back-up network ring. When these systems are operating properly, the customer is unaware a failure occurred. If the automatic switching does not take place, employees involved with disaster recovery can intervene and manually switch the affected network to another fiber ring or electronic hub and service is restored until the actual damage is fixed.”

None of those things appeared to happen in this case, and the outage persisted for 48 hours before all services were restored.

“CenturyLink has to have a disaster recovery plan with redundancies in place for electrical, inbound and outbound local and toll-free carriers, as well as network and hardware component redundancies. CenturyLink should be able to switch between multiple fiber optic rings or central offices in case entire networks of phones go down. They would then locate and repair, or replace, defective telecommunication components without the customer ever knowing. The fact that this did not happen is discouraging and scary for the consumer. The fact that it happened nationwide is even more surprising and disturbing. Hopefully the truth will come out soon.”

A critical editorial in the Albuquerque Journal added:

We need answers from CenturyLink beyond the cryptic “a network element” caused the outage. We need to know how many CenturyLink and Verizon customers were affected. And we need to know what they – and other internet and phone providers – are doing to prevent similar outages or worse from happening in the future. Because if the outage showed nothing else, it’s that like an old-time string of Christmas lights, we are living in an interconnected world.

And when one light goes out, they can all go out.

KTVB in Boise, Idaho reported on CenturyLink’s massive outage on Dec. 27-28 and how it impacted local businesses and government services. (3:09)

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