WASHINGTON (Reuters) – President Donald Trump plans to sign a repeal of Obama-era broadband privacy rules as a bigger fight looms over rules governing the openness of the internet, the White House said on Wednesday.
Republicans in Congress on Tuesday narrowly passed the repeal of the privacy rules with no Democratic support and over the strong objections of privacy advocates.
The fight over privacy sets the stage for an even larger battle later this year over Republican plans to overturn the net neutrality provisions adopted by the administration of former President Barack Obama in 2015.
White House spokesman Sean Spicer said he did not know when Trump would sign the bill.
The privacy bill would repeal regulations adopted in October by the Federal Communications Commission under the Obama administration requiring internet service providers to do more to protect customers’ privacy than websites like Alphabet Inc’s Google or Facebook Inc.
Under the rules, internet providers would need to obtain consumer consent before using precise geolocation, financial information, health information, children’s information and web browsing history for advertising and marketing.
The reversal is a win for AT&T Inc, Comcast Corp and Verizon Communications Inc. Websites are governed by a less restrictive set of privacy rules overseen by the Federal Trade Commission.
Republican commissioners have said the rules would unfairly give websites the ability to harvest more data than internet service providers.
Senate Democratic leader Chuck Schumer said in a tweet the vote was “Terrible for American people, great for big biz.”
Republicans next plan to overturn Net Neutrality provisions that in 2015 reclassified broadband providers and treated them like a public utility.
FCC Chairman Ajit Pai, a Republican, in December said he believes that Net Neutrality’s days are numbered.
The rules bar internet providers from obstructing or slowing down consumer access to web content and prohibit giving or selling access to speedy internet, essentially a “fast lane” on the web’s information superhighway, to certain internet services.
Critics say the rules opened the door to potential government rate regulation, tighter oversight and would provide fewer incentives to invest billions in broadband infrastructure.
Pai told Reuters in February be backs “a free and open internet and the only question is what regulatory framework best secures that” but has steadfastly declined to disclose his plans.
Trump has not talked as president about Net Neutrality but in 2014 tweeted he opposed it.
(Reporting by David Shepardson; Editing by Lisa Shumaker)
A conservative group funded by corporate interests and the Koch Brothers has asked FCC chairman Ajit Pai to answer its petition and move expeditiously to cancel the prohibition of data caps/usage-based pricing as a condition for FCC approval of Charter Communications’ acquisition of Time Warner Cable and Bright House Networks.
A number of pro-consumer deal conditions were included as part of the merger transaction’s approval, and won the support of a majority of FCC commissioners under the leadership of former FCC chairman Thomas Wheeler, appointed by President Barack Obama.
The Competitive Enterprise Institute (CEI) is hopeful that with Wheeler out of office and a new Republican majority at the FCC under the Trump Administration means the FCC will end requirements that Charter offer unlimited data plans, discounted internet access for low-income consumers, and start allowing Charter to charge fees to Netflix and other content providers to connect to its broadband customers. CEI has every reason to be hopeful, pointing out Chairman Pai is a fan of data caps on residential broadband service, opposes Net Neutrality, and recently effectively killed a Lifeline program that would have extended inexpensive internet access to the poor.
As then-Commissioner Pai wrote in 2016, this condition is neither “fair” nor “progressive.” Instead, he called this “the paradigmatic case of the 99% subsidizing the 1%,” as it encourages Charter to raise prices on all consumers in response to costs stemming from the activities of a “bandwidth-hungry few.” Other problematic conditions include the ban on Charter charging “edge providers” a price for interconnection and the requirement that the company operate a “low-income broadband program” for customers who meet certain criteria.
The group is optimistic Pai will oversee the unwinding of Charter’s deal conditions largely pushed by former FCC chairman Thomas Wheeler, after Pai recently led the charge to revoke another condition required of Charter in return for merger approval – a commitment to expand its cable network to pass at least one million new homes that already receive broadband service from another provider.
Pai also opposed the low-income internet program, calling it “rate regulation.” The CEI claimed the requirement will “undermine Charter’s ability to price its services in an economically rational manner.”
“Hopefully, the FCC’s new leadership will seize this opportunity to take a stand against harmful merger conditions that have nothing to do with the transaction at hand—by granting CEI’s petition,” the group wrote on its blog.
As a result of the multibillion dollar cable merger between Charter Communications, Bright House Networks, and Time Warner Cable, the three companies involved freely admitted: your cable bill was unlikely to decrease, you won’t have any new competitive options, there was no guarantee your service would improve, or that you would get faster broadband service than what Time Warner Cable Maxx was already delivering to about half its customer base.
While shareholders and Wall Street bankers made substantial gains, top Time Warner Cable executives walked away with multimillion dollar golden parachute packages, and Charter took control of what is now the country’s supersized, second most powerful cable operator, regulators also required the dealmakers share at least a tiny portion of the spoils with customers.
Then President Donald Trump’s FCC chairman — Ajit Pai — took leadership of the telecom regulator. Now all bets are off.
Pai is reconsidering the settled deal conditions imposed by the FCC under the last administration, and wants to give Charter Communications a free pass to let them out of their commitment to compete. Last week, Pai circulated a petition among his fellow commissioners to roll back the commitment Charter acknowledged to expand its service area to at least one million new homes that already get broadband service from another cable or telephone company.
Former FCC chairman Thomas Wheeler sought the competition requirement to prove that cable operators can successfully run their businesses in direct competition with each other, potentially inspiring other cable companies to face off with incumbent operators outside of their own territories. A paradigm shift worked for Google, which inspired ISPs to boost speeds in light of its gigabit Google Fiber service, which reset customer expectations.
The FCC order approving the merger deal was hardly onerous, requiring Charter to compete head-to-head for customers in places the company can choose itself. Lawmakers eliminated exclusive cable franchise agreements years ago, but established major cable operators like Charter have gone out of their way to avoid competing in areas that already receive cable service. While Wheeler may have hoped some of that competition would be directed against fellow cable companies, Charter CEO Thomas Rutledge quickly made clear to investors and the FCC Charter would continue to avoid direct cable competition, instead promising to expand service into non-cable areas that already get DSL service from the phone company or no broadband at all.
“When I talked to the FCC, I said I can’t overbuild another cable company, because then I could never buy it, because you always block those,” Rutledge said. “It’s really about overbuilding telephone companies.”
Charter’s CEO believes most phone companies are not competing on the same level as cable operators and are unwilling to make the necessary investments to upgrade their aging wired infrastructure to offer faster internet speeds. That makes competing with telephone companies like Windstream, Frontier, and Verizon’s DSL-only service areas a much better proposition than trying to compete head-to-head with Comcast, Cox, or Cablevision.
Rutledge’s clear views about Charter’s expansion plans apparently never made it to the American Cable Association, a cable industry lobbying group that defends the interests of independent and smaller cable operators. Despite Rutledge’s public statements, the ACA and its members are afraid Charter could expand on their turf anyway, potentially forcing small cable operators to compete with the same level of service Charter offers. The horror.
The ACA’s arguments found a sympathetic audience in Mr. Pai and now he wants to let Charter off the hook, at the expense of competition and better service for consumers.
Under the proposal circulated by Pai, Charter would still be required to expand its cable broadband service by at least one million new homes, but those homes would no longer have to be in areas outside of Charter’s existing service footprint. In practical terms, this would mean Charter would focus on wiring areas not far from where it provides service today — ‘DSL or nothing’-country. Charter would also be able to fritter away the number of expansions required by counting newly constructed neighborhood developments it would have likely wired anyway, as well as upgrading its remaining shoddy legacy cable systems — some still incapable of offering broadband or phone service.
The ACA’s talking points prefer to emphasize the David vs. Goliath scenario of a big bully of a cable company like Charter being forced to compete (and likely obliterate) existing small cable operators:
“The overbuild condition imposed by the FCC on Charter is stunningly bad and inexplicable government policy,” said ACA president and CEO Matthew Polka, in a statement. “On the one hand, the FCC found that Charter will be too big and therefore it imposed a series of conditions to ensure it does not exercise any additional market power. At the same time, the FCC, out of the blue, is forcing Charter to get even bigger.”
The real goal here is to minimize direct competition at all costs. The FCC’s deal conditions already included the need for more rural broadband expansion. Wheeler’s second goal was to introduce a new model — cable company competing against cable company — fighting for new customers by offering consumers better service and pricing. The existence of such competition would belie the industry’s claim that cable overbuilds and head-to-head competition is uneconomical. Wildly profitable, perhaps not, but certainly possible. Historically, the traditional way cable operators dealt with the few instances of direct cable competition was to buy them out to put them out of business. Rutledge was certainly thinking along those lines when he complained that the FCC’s order to compete did not include permission to eventually devour its competitor, effectively making competition go away.
Had Charter chosen to compete with cable companies not afraid to spend money to upgrade service above and beyond the anemic broadband speeds Charter offers, it would likely find few takers for its maximum 300Mbps broadband service that comes with a $200 install fee.
“Why would we go where we could get killed?” Rutledge admitted.
Industry claims that the cable business is already fiercely competitive are also countered by Rutledge’s own statements making clear direct competition with brethren cable companies on the cusp of speed-boosting DOCSIS 3.1 upgrades was bad for business. Instead, he would focus on competing with inferior phone companies, which he characterized as mired in debt, still skeptical about the financial wisdom of fiber optic upgrades, and the only competitor where dismal 3-10Mbps DSL service presented a ripe opportunity to steal customers away.
Clyburn – A likely “no” vote.
Charter’s merger approval and its conditions are a sealed deal that was acceptable to Charter and its shareholders and at least offered small token treats to ordinary consumers. Mr. Pai’s willingness to reopen and undo those commitments is just one reason we’ve referred to his regulatory philosophy as irresponsible, nakedly anti-consumer, and anti-competitive. Mr. Pai’s willingness to embrace things as they are comes at the same time most consumers are paying the highest broadband bills ever while also facing an epidemic of usage caps, usage billing, and increasing service and equipment fees. Mr. Pai’s other actions, including ending an effort to introduce competition into the set-top box market, curtailing customer privacy, ending inquiries on usage caps/zero rating, threatening to eliminate Net Neutrality, and reducing the FCC’s already anemic focus on consumer protection makes it clear Mr. Pai is a company man, on a mission to defend the interests of Big Telecom companies and their lobbyists (that also have a history of hiring friendly regulators for high-paying positions once their government job ends.)
That conclusion seems apt considering what Mr. Pai said about Chairman Wheeler’s vision of improving broadband: “one more step down the path of micromanaging where, when, and how ISPs deploy infrastructure.” Missing from his statement are consumers who have spent the last 20 years watching ISPs govern themselves while waiting… waiting… waiting for broadband service that never comes.
Mr. Pai’s proposal needs just one additional vote to win passage. That extra vote is unlikely until President Trump appoints another Republican commissioner. Pai’s proposal isn’t likely to win support from the sole remaining Democrat commissioner still at the FCC — Mignon Clyburn.
Like President Donald Trump, Ajit Pai is a busy man. He’s spent his first month as FCC chairman gutting his predecessor’s legacy, reversing pro-consumer policies, ending forays into set-top box competition, fair pricing for inmate phone calls, cheap internet access for the poor, ending reviews of data caps and zero rating practices, and threatening to terminate Net Neutrality with extreme prejudice.
No wonder Bob Quinn, AT&T senior executive vice president of external & legislative affairs applauded President Trump’s appointment of Pai, proclaiming he will “quickly and decisively put back in place the commonsense regulatory framework necessary to support the President’s agenda for job creation, innovation and investment. We look forward to working with him and his team and the FCC to support President Trump’s growth agenda.”
AT&T’s only growth agenda is sending customers ever-increasing bills, and with Mr. Pai at the helm of the FCC, they are sure to get their wish.
Over their terms at the FCC under the Obama Administration, Republican Commissioners Ajit Pai and Michael O’Rielly frequently complained their minority voices on the Commission were ignored and newly proposed regulations or policies would come before the FCC so quickly, there was inadequate time for public review. But since Pai teamed up with O’Rielly to abolish many of the most important achievements of his predecessor, Chairman Thomas Wheeler, they have reportedly all but ignored the sole remaining Democrat currently serving on the Commission — Mignon Clyburn.
Last Friday, Clyburn accused Pai of hypocrisy for complaining about policies being rushed for a vote without explanation before doing the same thing himself late last week.
Clyburn
“Today is apparently ‘take out the trash day.’ In an eponymous episode of the West Wing, White House Chief of Staff Josh Lyman stated: ‘Any stories we have to give the press that we’re not wild about, we give all in a lump on Friday . . . Because no one reads the paper on Saturday,'” Clyburn said in a statement. “Today multiple Bureaus retract—without a shred of explanation—several items released under the previous administration that focus on competition, consumer protection, cybersecurity and other issues core to the FCC’s mission. In the past, then-Commissioner Pai was critical of the agency majority for not providing sufficient reasoning behind its decisions.”
Clyburn’s office asked for more than the allotted two days to review a dozen items that suddenly appeared on the FCC’s agenda.
“We were rebuffed,” Clyburn wrote.
Clyburn then accused Pai of violating the Administrative Procedure Act, which requires adequate public notice and a comment period for public input. When she asked the chairman to comply with the “reasoned decision-making requirements of the APA,” she was told ‘No deal.’
Mr. Pai’s regulatory rollback agenda has moved with breathtaking speed, according to some FCC observers. Consumer group Free Press today called Pai’s progress “Orwellian.” Over less than a month, Pai — with the help of Commissioner O’Rielly — has:
Announced the formation of a Broadband Deployment Advisory Committee that is expected to be stacked with industry stakeholders that will recommend reform the FCC’s pole attachment rules, identify “unreasonable” regulatory barriers to broadband deployment, encourage local governments to adopt “deployment-friendly” policies, and develop a “model code” for local franchising, zoning, permitting, and rights-of-way regulations for telecom infrastructure like cell towers. Few expect the eventual “model code” to stray far from Big Telecom companies’ wish lists;
Near-unilaterally loosened rules allowing AM radio stations to continue making their presence felt on the overcrowded FM band through the use of low-power FM “translator” stations that rebroadcast the AM station’s programming;
Changed FCC policies to give broader notice of upcoming agenda items and policy proposals, ostensibly to improve public access to FCC rulemaking procedures. But observers suggest the change will primarily benefit industry lobbyists who will have advance detailed notice about the FCC’s upcoming agenda items, allowing them time to lobby for or against the proposals, or suggest changes;
Rescinded “Improving the Nation’s Digital Infrastructure,” a policy paper promoting rural broadband deployment and other broadband improvements released just prior to the inauguration of President Trump. On Feb. 3, the FCC set “aside and rescinds the Digital Infrastructure Paper, and any and all guidance, determinations, recommendations, and conclusions contained therein. The Digital Infrastructure Paper will have no legal or other effect or meaning going forward.”
Rescinded “in its entirety and effective immediately, earlier guidance provided in a March 12, 2014, public notice, DA 14-330, “Processing of Broadcast Television Applications Proposing Sharing Arrangements and Contingent Interests,” which attempted to limit ongoing media consolidation controversies including allowing one TV station to effectively operate and provide content for so-called ‘competing’ stations in a local area.
Closed the FCC’s investigation into wireless carriers’ zero-rating policies, which allow subscribers free access to “preferred provider content” without it counting against their data plan. Critics call zero rating an end run around Net Neutrality, because providers treat their own content as “preferred.” AT&T charges other content providers to participate in its zero rating program.
Instructed the FCC’s legal team to stop defending court challenges to its authority to ensure fair and reasonable telephone rates for incarcerated prisoners held captive to using a single carrier to make phone calls at prices much higher than what the public pays. Those rates were as high as $5.70 for a 15-minute in-state collect call placed from an incarceration facility in Kentucky. In that state alone, consumers effectively paid $2.79 million in kickbacks to state prison systems or a county jail. In contrast, a similar 15-minute call placed from a West Virginia jail or prison would cost $0.48. As a result of Pai’s actions, companies like Global Tel*Link, Securus, and Telmate “can continue the practice of price gouging prisoners and their families,” according to Prison Phone Justice;
Ended former FCC Chairman Wheeler’s attempt to force competition in the cable set-top box marketplace, allowing consumers to take a bite out of the $20 billion cable companies make in rental fees annually. At least 99% of subscribers now pay an average of $231 a year to lease the boxes, even after the company has fully recouped their original cost. Customers in Canada can buy their own set-top boxes and DVRs.
Killed an expansion of the FCC’s Lifeline program to offer discounted internet access to the poor. Pai reversed approvals made to nine providers — none accused of waste, fraud, or abuse — including Kajeet, Spot On, Boomerang Wireless, KonaTel, FreedomPop, Applied Research Designs, Liberty Cablevision of Puerto Rico, Northland Cable Television and Wabash Independent Networks. Pai later defended the move claiming his predecessor rushed through approval of the providers and he was rescinding those “midnight rules” as current chairman. Many Republicans are seeking a complete elimination of the Lifeline program.
Rescinded the latest progress report on modernizing the Universal Service Fund’s E-Rate program, which is designed to subsidize telecom services for schools and libraries. It could be the first step in eliminating or dramatically reforming the Fund;
Gave two violators of the FCC’s rules on properly collecting and reporting information about the source of political advertising aired on stations air a free pass.
Threw out a white paper from the FCC’s own Homeland Security Bureau advising the agency on cybersecurity issues. Pai doesn’t think the FCC should be involved in cybersecurity, so anything contrary to his agenda of reducing the role of the FCC is likely destined for the nearest wastepaper basket.
FCC letter to AT&T’s Bob Quinn letting him know the company is off the hook with the FCC on zero rating.
“Ajit Pai has been on the wrong side of just about every major issue that has come before the FCC during his tenure,” said Craig Aaron, president of Free Press. “He’s never met a mega-merger he didn’t like or a public safeguard he didn’t try to undermine. He’s been an inveterate opponent of Net Neutrality, expanded broadband access for low-income families, broadband privacy, prison-phone justice, media diversity and more. If Trump really wanted an FCC chairman who’d stand up against the runaway media consolidation that he himself decried in the AT&T/Time Warner deal, Pai would have been his last choice — though corporate lobbyists across the capital are probably thrilled.”
When AT&T announced it would offer 100+ cable television and broadcast network channels under the DirecTV Now brand for $35 a month, Wall Street had a fit.
Craig Moffett, an analyst with Moffett-Nathanson, speculated that AT&T would make at most a profit margin of $5 a month for its $35 a month plan, once programming costs were covered. But then AT&T announced it would sweeten the deal with a free Apple TV Player or Amazon Fire Stick for those confident enough to prepay for the new service. That makes DirecTV Now a purposefully unprofitable service, creating considerable stress for both the cable and satellite industry and their investors.
Varietynotes the average DirecTV satellite subscriber delivers about $60 a month in profit to its owner, AT&T. That led the industry magazine to speculate DirecTV Now is a “loss leader” designed to sell its parent company’s AT&T-Time Warner, Inc. merger deal to regulators on the premise of increased competition delivering real savings to consumers.
Thankfully for Wall Street’s nerves, AT&T’s usual practice of marketing things with a lot of fine print emerged in the nick of time, and the $35 dollar price has now turned out to be an introductory offer for early adopters. In the not-too-distant future, AT&T will enroll new customers for its “Go Big” package at a much more profitable $60 a month. Customers who sign up at the $35 rate and stay customers will be able to keep that price as long as they make no changes to their account after the promotion ends.
Moffett
But Moffett warned investors that the traditional cable television model is still under serious threat, and AT&T’s less-promoted “Live a Little” package offering 60 popular cable networks for the everyday price of $35 is the equivalent of AT&T “running with scissors” because it alone could cause millions of cable and satellite customers to cut the cord and stay more than satisfied with a slimmed down cable package.
“Virtually all the channels that anyone would really want, save for regional sports networks” are included in the lighter “Live a Little” package, Moffett added. Customers who loathe watching sports but want a beefier package can also sign up for a $50, 80-channel “Just Right” package that primarily omits sports-oriented channels and a handful of spinoff cable networks few would miss.
Moffett and other Wall Street analysts were hoping AT&T would bloat its cheaper package with home shopping, religion, and other little-watched, low-cost cable networks and then entice customers to upgrade to unlock more popular cable channels. Instead, AT&T’s most premium package — “Gotta Have It” which costs $70 a month adds the “can live without” networks like Boomerang, Cloo, El Rey, Centric, and other little-known channels that typically live unnoticed in Channel Siberia on 500+ channel cable lineups. The highest premium priced package is attractive only for those looking for Starz/Encore channels and the basic cable network that gets no respect — Hallmark Movies & Mysteries (a/k/a the Dick van Dyke Permanent Employment Network.)
“By stacking their base package with all the best networks — likely a requirement for getting the programming contracts at all — they still have the same problem that was highlighted initially,” by Moffett. “Put simply, they aren’t going to make any money.”
That quest for profit is further challenged with subscriber acquisition programs that dole out free Apple TV units to customers willing to prepay for three months of service at the $35 rate or an Amazon Fire Stick (with Echo remote) in return for prepaying for one month of service. Anyone in the market for either device can sign up for DirecTV Now, get the equipment at an attractive price, and consider the 1-3 months of service a free extra bonus. Customers were reportedly lining up at AT&T’s owned and operated retail outlets (not authorized resellers) to pick up devices and sign up for service today.
At these prices and with these promotions, AT&T DirecTV Now could first decimate the subscriber base of its immediate competitors Sling TV and PlayStation Vue, either of which offer a much less compelling value. AT&T can afford to charge a lower price because it has deeper pockets and enormous volume discounts on the wholesale price of cable programming — combining millions of DirecTV and U-verse TV subscribers together to negotiate what industry insiders suspect are major discounts the smaller providers cannot get.
But there are issues likely to be deal-breakers for some would-be DirecTV Now subscribers:
Local broadcast stations are available only in a handful of selected cities and only a very few include all ABC, NBC, and FOX affiliates. CBS is not participating in DirecTV Now at this time, and that is a major omission;
There is a limit of two concurrent streams and although video quality is very good, it is not the 1080/HD experience AT&T’s marketing material would suggest. The quality of your internet connection will make a difference;
No DVR option at this time.
CNET compiled an excellent channel comparison chart to help consumers figure out which, if any, of these upstarts make sense as a cable TV replacement:
DirecTV Now vs. Sling TV vs. PlayStation Vue (top 169 channels, see notes below)
Channel
DirecTV Now Packages
Sling Package
Vue Package
A&E
Live a Little
Orange, Blue
No
ABC
Yes or VOD
Broadcast extra
Yes or VOD
AMC
Live a Little
Orange, Blue
Access
American Heroes
Go Big
No
Elite
Animal Planet
Live a Little
No
Access
Audience
Live a Little
No
No
AXS TV
Live a Little
Orange, Blue
No
Baby TV
No
Kids extra
No
BBC America
Live a Little
Orange, Blue
Access
BBC World News
Go Big
News extra
Elite
beIN Sports
No
Sports extra
Core
BET
Live a Little
Blue (Orange lifestyle extra)
No
Bloomberg TV
Live a Little
Base
No
Boomerang
Gotta Have It
Kids extra
Elite
Bravo
Live a Little
Blue
Access
BTN
Just Right
No
Core
Campus Insiders
No
Sports extra
No
Cartoon Network/Adult Swim
Live a Little
Orange, Blue
Access
CBS
No
No
Yes or VOD
CBS Sports
No
No
No
Centric
Go Big
No
No
Cheddar
No
Orange, Blue
No
Chiller
Gotta Have It
No
Elite
Cinemax
PREMIUM ($5/month)
PREMIUM
No
Cloo
Gotta Have It
No
Elite
CMT
Live a Little
Comedy extra
No
CNBC
Live a Little
News extra Blue
Access
CNBC World
Just Right
No
Elite
CNN
Live a Little
Orange, Blue
Access
Comedy Central
Live a Little
Orange, Blue
No
Comedy.TV
Just Right
No
No
Cooking Channel
Just Right
Lifestyle extra
Elite
CSPAN
Live a Little
No
No
Destination America
Go Big
No
Access
Discovery Channel
Live a Little
No
Access
Discovery Family
Go Big
No
Access
Discovery Life
Go Big
No
Elite
Disney Channel
Live a Little
Orange
Access
Disney Junior
Live a Little
Kids extra Orange
Access
Disney XD
Live a Little
Kids extra Orange
Access
DIY
Go Big
Lifestyle extra
Access
Duck TV
No
Kids extra
No
E!
Live a Little
Lifestyle extra Blue
Access
El Rey Network
Gotta Have It
Orange, Blue
No
Encore
Gotta Have It
No
No
EPIX
No
Hollywood extra
No
EPIX Drive-in
No
Hollywood extra
No
EPIX Hits
No
Hollywood extra
PREMIUM, Elite
EPIX2
No
Hollywood extra
No
ESPN
Live a Little
Orange
Access
ESPN 2
Live a Little
Orange
Access
ESPN Bases Loaded
No
Sports extra Orange
No
ESPN Buzzer Beater
No
Sports extra Orange
No
ESPN Deportes
No
Spanish TV extra Orange
Elite
ESPN Goal Line
No
Sports extra Orange
No
ESPNEWS
Just Right
Sports extra Orange
Core
ESPNU
Just Right
Sports extra Orange
Core
Esquire
No
No
Access
Euro News
No
World News Extra
No
Flama
No
Orange, Blue
No
Food Network
Live a Little
Orange, Blue
Access
Fox
Yes or VOD
Blue
Yes or VOD
Fox Business
Live a Little
No
Access
Fox College Sports Atlantic
No
No
Elite
Fox College Sports Central
No
No
Elite
Fox College Sports Pacific
No
No
Elite
Fox News
Live a Little
No
Access
Fox Sports 1
Live a Little
Blue
Access
Fox Sports 2
Go Big
Blue
Access
Fox Sports Prime Ticket
Just Right
No
No
France 24
No
World News Extra
No
Freeform
Live a Little
Orange
Access
Fuse
Just Right
No
No
Fusion
Just Right
World News Extra
Elite
FX
Live a Little
Blue
Access
FXM
Go Big
No
Elite
FXX
Live a Little
Blue
Access
FYI
Go Big
Lifestyle extra
No
Galavision
Live a Little
Orange, Blue
No
Golf Channel
Go Big
Sports extra Blue
Core
GSN
Just Right
Comedy extra
No
Hallmark
Live a Little
Lifestyle extra
No
Hallmark Movies & Mysteries
No
LIfestyle extra
No
HBO
PREMIUM ($5/month)
PREMIUM
PREMIUM, Ultra
HDNet Movies
No
Hollywood extra
No
HGTV
Live a Little
Orange, Blue
Access
Hi-Yah
No
No
Elite
History
Live a Little
Orange, Blue
No
HLN
Live a Little
News extra
Access
HSN
No
No
No
IFC
Just Right
Orange, Blue
Core
Ion
No
No
No
Impact
No
No
Elite
Investigation Discovery
Live a Little
No
Access
JusticeCentral.TV
Just Right
No
No
Lifetime
Live a Little
Orange, Blue
No
LMN
Just Right
Lifestyle extra
No
Local Now
No
Orange, Blue
No
LOGO
Go Big
Comedy extra
No
Longhorn Network
Just Right
No
No
Machinima
No
No
Elite
Maker
No
Orange, Blue
No
MGM-HD
No
No
Elite
MLB Network
Just Right
No
No
Motors TV
No
Sports extra
No
MSNBC
Live a Little
News extra Blue
Access
MTV
Live a Little
Comedy extra
No
MTV Classic
Go Big
No
No
MTV2
Live a Little
Comedy extra
No
Nat Geo Wild
Go Big
Blue
Elite
National Geographic
Live a Little
Blue
Access
NBA TV
Go Big
Sports extra
Core
NBC
Yes or VOD
Blue
Yes or VOD
NBC Sports Network
Just Right
Blue
Access
NDTV 24/7
No
World News Extra
No
News 18 India
No
World News Extra
No
Newsy
No
Orange, Blue
No
NFL Network
No
Blue
Core
NFL Red Zone
No
Sports extra (Blue)
PREMIUM (Core and up)
NHL Network
Go Big
Sports extra
No
Nick Jr.
Live a Little
Blue
No
Nickelodeon
Live a Little
No
No
Nicktoons
Live a Little
Kids Extra Blue
No
ONE World Sports
No
No
Elite
Outdoor Channel
No
No
No
Outside Television
No
Sports extra
Elite
OWN
Just Right
No
Access
Oxygen
Just Right
Lifestyle extra Blue
Access
Palladia
No
No
Elite
PBS
No
No
No
Poker Central
No
No
Elite
Polaris
No
Orange, Blue
Elite
POP
No
No
Access
QVC
No
No
No
Revolt
Go Big
No
No
RFD TV
Live a Little
No
No
Russia Today
No
World News Extra
No
Science
Just Right
No
Access
SEC Network
Just Right
Sports extra Orange
Core
Showtime
No
No
PREMIUM, Elite
Spike
Live a Little
Comedy extra
No
Sprout
Go Big
No
Elite
Starz
Gotta Have It
PREMIUM
No
Sundance TV
Go Big
Hollywood extra
Core
Syfy
Live a Little
Blue
Access
TBS
Live a Little
Orange, Blue
Access
TCM
Live a Little
Hollywood extra
Core
Teen Knick
Live a Little
Kids extra Blue
Elite
Telemundo
Live a Little
No
No
Tennis Channel
Go Big
No
No
The Weather Channel
Live a Little
No
No
TLC
Live a Little
No
Access
TNT
Live a Little
Orange, Blue
Access
Travel Channel
Just Right
Orange, Blue
Access
truTV
Live a Little
Blue (Orange comedy extra)
Access
TV Land
Live a Little
Comedy extra
No
TVG
Go Big
No
No
Universal HD
No
No
Elite
Univision
Live a Little
Blue (Orange Broadcast extra)
No
Univision Deportes
Gotta Have It
Sports extra
No
Univision Mas
Just Right
Blue (Orange Broadcast Extra)
No
USA Network
Live a Little
Blue
Access
Velocity HD
Live a Little
No
Elite
VH1
Live a Little
Lifestyle extra
No
VH1 Classic
No
No
Elite
Vibrant TV
No
Lifestyle extra
No
Viceland
Live a Little
Orange, Blue
No
WE tv
Live a Little
Lifestyle extra
Access
WeatherNation
Live a Little
No
No
Notes
Broadcast networks including ABC, CBS, Fox and NBC are not available for live streaming in many cities, except where noted as “yes.” The term “VOD” means viewers can watch these shows on-demand 24 hours after airing.
Most RSNs (Regional Sports Networks) not listed; varies per locality
PREMIUM = Available for an additional monthly fee beyond base package
DirecTV Now package key: Live a Little = $35/month (Local ABC, Fox, NBC broadcasts included in select markets) Just Right = $50/month Go Big = $60/month ($35 / month introductory price) Gotta Have It = $70/month
Sling TV package key: Orange = $20/month Blue = $25/month other “”extras”” = another $5 /month each (Sports extra with Blue is $10) Broacast Extra: ABC, Univision and Univision Mas available to Sling Orange subscribers in select cities
PlayStation Vue package key: (for New York, Los Angeles, Chicago, Philadelphia, Dallas, San Francisco, Miami ONLY) Access (Base) = $40/month Core = $45/month (includes Access channels, some Regional Sports Networks) Elite = $55/month (includes Access and Core channels) Ultra = $75/month (includes Access, Core and Elite channels, plus HBO and Showtime)
(for all other cities, where ABC, CBS, Fox and NBC are available via VOD only) Access Slim (Base) = $30/month Core Slim = $35/month (includes Access channels, some Regional Sports Networks) Elite Slim = $45/month (includes Core and Access channels) Ultra Slim = $65/month (includes Access, Core and Elite channels, plus HBO and Showtime)
$5 a month each for HBO and Cinemax.
Time Warner, Inc. did its part, offering a substantial deal to DirecTV Now to allow customers to add HBO and Cinemax for just $5 a month each, substantially less than what both networks charge customers signing up a-la-carte. This also unlocks access to streaming options on both networks’ websites.
In fact, as a DirecTV Now customer, you will also become an authenticated pay television subscriber, unlocking access on various cable network websites to extra streaming and on-demand options.
The implications of DirecTV Now depend on how long AT&T extends its $35 offer, which is going to be compelling for a lot of Americans. Moffett predicts DirecTV Now could sign up a staggering 11 million Americans — at least two million cannibalized from its own DirecTV satellite customer base, six million cutting the cord on their cable company (including AT&T U-verse) and another three million cord-cutters or “cable-nevers.” Most of the latter are Millennials, and research suggests $35 may be low enough of a price point to sign them up.
AT&T is also raising concerns among internet activists because online streaming of DirecTV Now will not count against an AT&T postpaid customer’s data allowance. This zero rating scheme is seen as an end run around Net Neutrality, particularly because AT&T is not as generous with its competitors. AT&T said it will offer other video streamers the possibility of being exempted from AT&T data allowances, if they pay AT&T for the privilege.
How It Works/Signing Up
AT&T DirecTV Now starts with the Google Chrome 50+, Safari 8+ or Internet Explorer 11+ (on Windows 8 and up) web browsers or the DirecTV Now app. AT&T recommends Chrome for desktop viewing. The service doesn’t work with Firefox, Microsoft Edge, or legacy browsers.
The first step is registering for a 7-day free trial. Before handing over your credit card number, if you scroll down you will find a small free preview option is also available that includes a largely useless streaming barker channel promoting the service and a respectable collection of video on demand options from basic cable networks. The free video streaming option will give you a clue about how the service is likely to perform on your internet connection and devices. For the record, DirecTV Now now supports:
Support for other devices like Roku is coming next year.
Customers must be within the United States to use the service. If you travel abroad or to any U.S. territories like Guam, the Virgin Islands, or Puerto Rico, DirecTV Now will stop working until you return. When you sign up, keep in mind your billing zip code will mean a lot when it comes to accessing regional sports and local broadcast channels. DirecTV Now uses your billing zip code and your actual location to determine whether you are qualified to access regional sports networks and local stations.
Score a Free Apple TV Player or Amazon Fire TV Stick
Apple TV (4th Generation): Effectively free after prepaying for three months of service.
If you are looking to score an Apple TV (4th generation) or an Amazon Fire TV Stick, you will want to skip the 7-day free trial and enroll in a paid plan immediately, which will allow you to select which player you want. If you want the Apple TV, you will prepay for three months at $35 a month ($105). The Amazon Fire TV Stick only requires you to prepay for the first month of service ($35). One device per email address, but you can sign up for multiple accounts (using individual email addresses) and get a device for each — especially useful for larger families that could run into DirecTV Now’s two-stream limit.
Consider your choices before enrolling. If you want to add premium channels or upgrade your plan, and you select the three-month prepay option to grab an Apple TV Player, adding premium channels like HBO and Cinemax or moving to a higher plan will result in three months of prepaid charges for those upgrades as well, billed automatically to your credit card on file — which amounts to a $30 charge if you select HBO and Cinemax. After your promotional prepaid term ends, your account will continue to be billed at the $35 (plus any add-ons) rate until you cancel. AT&T covers you for the forfeited first free week by extending your bill date out by seven days. Allow 2-3 weeks for the device(s) to be shipped to you.
You can also sign up at an AT&T owned and operated retail store, but be aware AT&T “authorized” reseller stores are not participating in this promotion. That may allow you to bring home a device today.
Don’t care about the device promotions? Take the 7-day free trial, but be aware that you are giving AT&T your credit card number and charges begin immediately after the free week ends unless you cancel. Here’s how:
From your User Account overview page, select Manage My Plan.
Select the Cancel Plan link.
Choose one of the listed reasons.
Select Cancel Nowto confirm cancellation.
Your subscription will continue until the end of the billing cycle. No refunds or credits are provided for partial months. Your account will revert to Freeview demo status after you cancel a subscription. You can add a subscription package back at any time.
Oddly, AT&T is not charging sales tax for New York, California, Maryland or Virginia residents. Customers in states like Tennessee where AT&T provides local phone service were most likely to face sales taxes. Those signing up early are in the best position to exploit what appears to be an oversight, or it represents the first time the New York Department of Taxation and Finance left money on the table.
Streaming from Your AT&T Wireless Device Does Not Count Against Your Data Allowance
If you’re a DirecTV Now and AT&T Wireless customer, streaming most DirecTV Now movies and programs over the AT&T wireless network won’t count against your data usage allowance, according to AT&T. But believe it or not, AT&T’s fine print indicates advertisements and non-streaming app activity do count! There are some other important disclosures to be aware of:
You must be on the AT&T Wireless network within the U.S. (U.S. territories are not qualified for zero rating);
You must be a postpaid, not a prepaid AT&T wireless customer to qualify and must not have “data block” on your mobile line;
If you are grandfathered on an unlimited data plan, using DirecTV Now will not count against the 22GB data threshold which subjects you to speed throttling;
This offer may disappear at any time and/or is subject to change.
DirecTV Now Qualifies You as an Authenticated Pay Television Subscriber
Many cable networks require customers enter their cable, satellite, or telco TV login credentials to unlock video streaming and on-demand features. DirecTV Now is a qualified provider for these websites (more coming):
Other networks are not yet enabled for DirecTV Now. CNN, for example, has a prompt for DirecTV satellite customers to log in, but DirecTV Now has its own account registration system.
Local Channels Are Very Spotty
Local over the air channels are very limited on DirecTV Now and are geographically restricted. You can access these channels only if you are located in or very near to the cities listed below and your billing zip code is in the same area. If you travel outside of the immediate area, live streaming will stop working until you return.
ABC* NBC** FOX and Telemundo are covered by DirecTV Now in selected cities. CBS is not available on the service at all at this time.
Atlanta, GA: WAGA-TV
Austin, TX: KTBC
Boston, MA: Telemundo East
Charlotte, NC: WJZY
Chicago, IL: WLS-TV, WMAQ, WFLD, Telemundo East
Dallas-Ft Worth, TX: KXAS, KDFW-TV, Telemundo East
Denver, CO: Telemundo East
Detroit, MI: WJBK
Fresno-Visalia, CA: KFSN-TV, Telemundo East
Gainesville, FL: WOGX
Hartford-New Haven, CT: WVIT
Houston, TX: KTRK-TV, Telemundo East
Las Vegas, NV: Telemundo East
Los Angeles, CA: KABC-TV, KNBC, KTTV, Telemundo East
Miami-Ft Lauderdale, FL: WTVJ, Telemundo East
Minneapolis, MN: KMSP-TV
New York, NY: WABC-TV, WNBC, WNYW, Telemundo East
Orlando-Daytona, FL: WOFL
Philadelphia, PA: WPVI-TV, WCAU, WTXF-TV, Telemundo East
Phoenix, AZ: KSAZ-TV, Telemundo East
Raleigh-Durham, NC: WTVD-TV
San Diego, CA: KNSD
San Francisco/Oakland/San Jose, CA: KGO-TV, KNTV, KTVU
Tampa-St Petersburg, FL: WTVT
Washington, D.C.: WRC, WTTG
*Not available on Internet Explorer 11 on Windows 7. **NBC live stream available on mobile and desktop devices only.
Giving the Service a Test
Stop the Cap! enrolled as an ordinary customer this morning and gave the service a rigorous test, including multiple streams over our 50/5Mbps internet connection. The service debuted today, and there is little doubt there is intense interest from consumers, so we expected some performance problems from the initial demand. We didn’t see any evidence of traffic congestion, however, and that is a good sign.
AT&T’s John Stankey explaining DirecTV Now.
A similar test of Sling TV did not perform as well during peak viewing times, when streaming problems emerged. DirecTV Now seems to be built to withstand intense demand.
One customer with a 6Mbps U-verse internet connection “in the boonies” was impressed the video quality of DirecTV Now was high even on a relatively slow DSL-like connection.
“This blows SlingTV away,” the person shared. “I only have U-verse 6Mbps internet service and it is not pixelated or buffering at all. Looks exactly like my regular DirecTV picture.”
AT&T published these recommendations for DirecTV Now customers regarding internet connection speeds:
150kbps – 2.5Mbps – Minimum broadband connection speed for Mobile devices
2.5 – 5.0Mbps – Recommended for HD quality
We’ve been led to believe DirecTV Now should perform equivalently to 1080i HDTV service (depending on the video source of course). We cannot say we agree it does right now. We noticed significant artifacts on high-motion video and picture graininess that left us feeling this was closer to a 720p HD experience. It isn’t possible to say whether the video player reduced playback quality because of internet traffic issues we were unaware of or if this is how the picture is supposed to look. It did not significantly detract from the viewing experience and the lack of buffering and pixelation was far more important to us.
AT&T store in NYC.
DirecTV Now would serve adequately as a cable TV replacement if it had local station coverage and some type of DVR. At present, DirecTV Now is limited to a “Restart” feature that allows you to restart shows already in progress on certain channels, but you cannot fast-forward or record a restarted show. Once AT&T introduces a cloud-based DVR and fills out the local station lineup, this service could be lethal to overpriced cable TV packages.
AT&T’s marketing attempts to undercut the powerful position of inertia by setting an unknown time limit for customers to enroll in the $35 a month video package. If you don’t sign up today, you may not get the “free” Apple TV or Amazon Fire Stick and a respectable cable TV package for just $35 a month — about half what cable operators are charging these days for their bloated video packages. AT&T doesn’t care if you stick with your current cable provider and signup for DirecTV Now, if only to grab free streaming video equipment while sampling the service. They get their money either way.
Had AT&T permanently kept the price at around $35, many consumers would likely sit back and wait for AT&T to sort out the streaming contract issues it has with the TV networks — CBS in particular, and come up with a DVR solution before those potential customers decided to sign up and make the change. Based on several “hot deals” websites, the mentality among many consumers is to “lock in” the $35 price now and wait for AT&T to build out the package while continuing to invest $35 a month on it. That doesn’t seem so bad when you get free electronics as part of the deal.
Our Final Take
AT&T’s DirecTV Now is a potential winner and worth signing up for because of the introductory price and free equipment offers. But if you decide not to disconnect your cable/satellite television service, it is probably safe to drop DirecTV Now after your prepayment expires and return to resume service a little later. There will probably be some warning when AT&T will end the introductory price for the service, and interested customers can hop back on board before that date arrives. DirecTV Now will be a formidable competitor, but it will fight against consumer resistance to confront the cable company and cut cable’s cord until it solves the local channels issue and has a credible DVR option. The service could also use an add-on to make adding additional concurrent streams possible and more affordable than just signing up for a second account.
Don’t count out Big Cable just yet. With data caps and other internet overcharging schemes, Comcast, Cox, Suddenlink, and others can play games with usage allowances to deter customers from streaming all of their video entertainment online at the risk of blowing past their allowance. DirecTV Now’s $35 price won’t mean much after overlimit fees begin appearing on your internet bill.
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