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Puerto Ricans Giving Up on U.S. Cell Phone Providers; Mexico’s Claro Has Best Coverage

U.S. cell phone providers are facing increasing criticism they are dragging their feet on restoring cell service in Puerto Rico while Mexican-owned Claro has now successfully restored service in 28 of the territory’s 78 municipalities.

Claro Puerto Rico, owned by Mexican billionaire Carlos Slim’s America Movil, has dramatically outpaced AT&T, T-Mobile, and Sprint in getting their damaged cell phone facilities back up and running. Claro is Puerto Rico’s second most popular cell company behind AT&T.

“Claro is the only one with service here,” Francisco Portales, 47, a customer of privately held Puerto Rico-based network provider Open Mobile told a Reuters reporter while waiting outside the Claro store in Fajardo hoping to buy a phone.

Looking for a signal.

The FCC’s latest update on Tuesday reported about 88% of Puerto Rico is still without cell service, but the agency does not break down network repairs by carrier, and American providers have declared their specific restoration plans to be confidential.

While AT&T complained the lack of commercial power remained its biggest problem, Claro said it had pre-positioned generators, diesel fuel, battery backups, and vehicles 72 hours before the hurricane hit, which appears to have made all the difference in restoring service.

Sprint said late last week its towers were still standing and “largely intact” although it gave no specific information on when service might be restored. T-Mobile was more frank, reporting “it’s going to be a long road to recovery.”

Claro is not taking advantage of its position as the island’s most reliable post-hurricane carrier, allowing customers of other providers to roam on its network where a signal is available. That may be all the good publicity Claro needs to win over new customers after the hurricane damage is repaired.

Claro’s repair trucks.

Mercedes Saldana, a 54-year-old school cafeteria worker and Sprint customer is just one of many now searching shops for a Claro prepaid phone.

“I don’t have any service, none,” she said. “We don’t know when Sprint’s going to be connected again.”

Customers unwilling to switch carriers and won’t roam may have long travel times ahead of them to find a signal. Luis Pacheco, 64, was planning to drive with his wife to Canovanas — 30 to 40 minutes west — in hopes of finding a cell signal to text his daughter in California. That is the nearest community where AT&T has a signal at the moment.

Before the storm, AT&T dominated Puerto Rico with a 34% market share, followed by Claro Puerto Rico with a 26% share. T-Mobile was third with 19%, Open Mobile has 11% and Sprint 10%. Verizon Wireless has no network facilities in Puerto Rico, but travelers with Verizon phones are granted roaming access on Claro’s network.

AT&T Shifting More Customer Call Centers Offshore

Phillip Dampier October 4, 2017 AT&T, Consumer News, Public Policy & Gov't 1 Comment

Less than a decade ago, AT&T was one of El Paso’s largest private employers, with 2,400 employees. Next month, it will be a shadow of its former self with fewer than 500 local workers after a series of layoffs and call center closures.

AT&T is planning to close its East El Paso office in November, giving 278 employees the option of leaving or relocating to San Antonio, Missouri, or Florida to remain employed by AT&T.

AT&T used to employ thousands of workers in its El Paso call centers and technical facilities. But much of that work is now being shifted to third-party contractors and offshore call centers overseas.

Since 2011, AT&T has eliminated 12,000 call center jobs in the United States, closing and downsizing call centers across the country, according to the Communications Workers of America.

In 2006, AT&T closed a major call center in Massachusetts, despite receiving generous tax benefits from the local and state government, and offered to relocate those employees to the same call centers in El Paso it is closing now.

In 2015, AT&T demanded El Paso and the state of Texas triple their $50 million annual tax break or else they would shift spending elsewhere. It appears tax abatements ultimately had little effect on AT&T’s spending decisions in the western Texas city.

The union reports the annual salaries for those jobs ranged from $32,000 to $65,000 per year, plus commissions and health and retirement benefits. Offshore customer care centers pay a fraction of those salaries and many third-party contractors do not pay benefits because they designate many employees as part-time workers.

AT&T disputes it is increasing its offshore customer service workforce at the cost of American workers.

“It’s important to note that there is a job for every employee who is willing to relocate to the facilities where the work is being consolidated,” and they will get a relocation allowance if they have to move, Marty Richter, a spokesman for AT&T, told the El Paso Times.

“We’re adding people in many areas of our business where we’re seeing increased customer demand for products and services,” and reducing jobs in areas where work volumes are decreasing, “in part because of changing technology,” Richter added.

Most of the remaining 350 AT&T employees in El Paso will be staffing five retail stores in the area or working as technicians or back-office workers.

Few are expected to take AT&T’s offer to relocate to San Antonio, if only because there are signs AT&T will continue to cut back on its domestic call center operations and shift that work online or overseas.

American Cable Association Wants Ban on TV Blackouts During Disasters

Phillip Dampier October 3, 2017 Consumer News, Public Policy & Gov't Comments Off on American Cable Association Wants Ban on TV Blackouts During Disasters

Polka

The nation’s trade association for independent cable companies wants the FCC to prohibit broadcasters from blacking out TV stations during disasters and local emergencies.

The American Cable Association applauded the FCC’s intervention in the recent retransmission consent dispute between Dish Networks and Lilly Broadcasting, which resulted in the satellite provider losing access to a Caribbean-focused station for viewers in Puerto Rico and the U.S. Virgin Islands.

“The commission should find it intolerable for a broadcaster seeking to leverage higher retransmission consent fees to block viewers in a state of emergency from accessing critical, and potentially life‐saving, information,” wrote ACA president Matthew Polka. “It is no answer in such a situation for the broadcaster to suggest that viewers should switch providers or install antennas in order to access this information.”

ACA members, often small cable companies providing service in rural areas, also face station blackouts during tough contract renegotiation talks at a time when many stations are asking for unprecedented rate increases — sometimes 100% or more — in return for a carriage renewal agreement. Some stations have used whatever leverage they can find to pressure cable operators to agree to their terms, without disclosing to viewers just how much some stations are asking to renew those contracts. Most cable operators have passed those fees on to subscribers, which can easily add $5-7 a month to a cable television bill just for three or four local stations.

Lilly’s decision to blackout its One Caribbean TV channel left English-speaking viewers in Puerto Rico without an important news source. Most broadcast outlets on that island broadcast for the much larger Spanish-speaking population. The station was quickly returned to Dish’s lineup after it became a political issue.

Polka wants to make sure a similar situation does not happen in the future, so he’s asked the FCC to consider adding a requirement to the FCC’s “good faith” rules that govern acceptable behavior during retransmission consent negotiations forbidding stations from pulling their signal anywhere the FCC has activated its Disaster Information Reporting System, and to guarantee those signals will remain accessible for the duration of the event.

“We urge the commission to propose and seek comment on such a rule change as soon as possible in order to avoid consumer harm in future emergencies,” Polka told the FCC.

FCC Chairman Ajit Pai Wins New 5-Year Term With Republican Support

‘I win’ — Pai wins a second 5-year term at the FCC.

Republicans in the U.S. Senate on Monday confirmed Federal Communications Commission Chairman Ajit Pai for a second five-year term at the regulatory agency at a time when he is in the process of dismantling the legacy left by the former Obama Administration, which introduced consumer telecommunications reforms and mandated Net Neutrality.

Pai won confirmation with unanimous Republican support, joined by four Democrats — Sens. Jon Tester (Mont.), Gary Peters (Mich.), Joe Manchin (W.V.), and Claire McCaskill (Mo.). Every other Democrat in attendance opposed his nomination, many raising serious doubts about his performance and regulator philosophy. Pai was a former lawyer for Verizon and has delivered policy speeches sponsored by large corporate interests, including Americans for Prosperity, which has close ties to the Koch Bros.

Although Pai promised in a statement after the vote he would continue to focus on “bridging the digital divide, promoting innovation, protecting consumers and public safety, and making the FCC more open and transparent,” his critics complain he has spent most of his time repealing Obama era rules and regulations to erase the legacy of his predecessor Thomas Wheeler.

Pai is widely expected to preside over the elimination of Net Neutrality/Open Internet protections, despite millions of objections from ordinary Americans who wrote the FCC in historic numbers. Most requested the agency preserve the rules that prevent internet providers from establishing paid fast lanes and speed throttles.

Pai “has established a clear record of favoring big corporations at the expense of consumers, innovators, and small businesses,” Senate Democratic Leader Chuck Schumer said.

Senate roll call vote on the nomination of Ajit Pai for another 5-year term.

The current FCC chairman has also received withering criticism from consumer and public interest groups for his apparent close ties to Sinclair Broadcast Group, which itself has ties to the Trump Administration. Critics accuse Pai of engineering FCC rule changes that closely coincide with the business agenda of Sinclair, the nation’s largest owner of local television stations. Sinclair is currently awaiting FCC approval of its acquisition of Tribune Media, which will include local stations serving major cities including New York, Chicago, and Los Angeles.

Sen. Elizabeth Warren (D-Mass.) was particularly critical of Pai’s performance, suggesting he was little more than a corporate tool:

“As powerful companies know, it is good to have friends on the inside and they have invested a lot of money in making friends. Giant corporations have spent unlimited amounts of money to elect politicians who will promote their views and to flood Congress with lobbyists who will work around the clock to destroy laws and rules that the industry doesn’t like and to reshape those laws to suit corporate interests.

“[…] Powerful corporations need weak agencies that won’t hold them accountable, so they work to fill those agencies with their allies — friends who can undo the rules that giant corporations don’t like. Friends who won’t go after those companies when they throw the rules out the window to make an extra buck. The FCC is one of the agencies that has been on their hit list for a long time, and now they see their opportunity to execute a corporate takeover of the FCC, and they started at the top with Ajit Pai, President Trump’s pick to chair the FCC. Since his appointment as chair of the FCC, Chairman Pai has worked at breakneck speed to transform the FCC from an agency that works in the public interest to a big business support group.”

Sen. Elizabeth Warren (D-Mass.) explains her reasons why she doesn’t support the nomination of FCC Chairman Ajit Pai for another five-year term. (8:43)

Conn. Gives Charter $10 Million Loan, $10 Million Tax Credits for Its New Headquarters

Phillip Dampier October 3, 2017 Charter Spectrum, Public Policy & Gov't Comments Off on Conn. Gives Charter $10 Million Loan, $10 Million Tax Credits for Its New Headquarters

Connecticut taxpayers will underwrite the cost of Charter Communications new 500,000 square foot, 15-story headquarters building with a $10 million direct loan and an additional $10 million in tax credits.

The cable company, which has the highest paid CEO in the United States, will use taxpayer dollars to help fund its new corporate offices at the Gateway Harbor Point, with an option to further expand the site into a two building campus. It won taxpayer support for committing to create 400 jobs in 2012 under the state’s First Five Program. Now it has agreed to create an additional 1,100 jobs at its corporate headquarters in Stamford and make an investment of $100 million in capital expenditures in Connecticut over several years. The more jobs Charter creates in Stamford, the more tax credits the company can receive.

“Since relocating Charter’s headquarter operations to Stamford in 2012, the company has undergone a transformation to become the second largest cable provider in the U.S.,” said Tom Rutledge, chairman and CEO, Charter Communications. “This new, state-of-the-art facility in downtown Stamford will provide Charter the necessary resources to facilitate its continued growth. We are excited to continue expanding in Connecticut, and thank Governor Malloy, Mayor Martin, the Connecticut Department of Economic and Community Development, and the entire Stamford-area federal, state and local delegation of elected officials for their continued partnership and support.”

“Today is a great day for Connecticut,” said Governor Dannel P. Malloy. “Charter’s announcement to create an additional 1,100 jobs shows that our strategic investments are continuing to spur economic growth and create good paying jobs in the state. We look forward to the continued success of Charter Communications as they grow within the state.”

What has been good for Connecticut has not proven so great for Charter Communications workers in other states. Several hundred have been laid off, mostly at call centers. But a number of employees working at Time Warner Cable’s headquarters in Manhattan have also left.

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