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AT&T Scam of the Week: Advocating for Fake Net Neutrality

After spending millions to kill net neutrality, AT&T today called on Congress to pass a new national law protecting AT&T’s idea of a free and open internet by regulating internet websites like Facebook, Google, and Amazon.

Full page newspaper ads taken out in several nationally known newspapers proclaimed AT&T CEO Randall Stephenson’s support for the first “Internet Bill of Rights,” conceived by some of the same lawyers and lobbyists AT&T paid to destroy the FCC’s net neutrality rules put into effect during the Obama Administration.

“Congressional action is needed to establish an ‘Internet Bill of Rights’ that applies to all internet companies and guarantees neutrality, transparency, openness, non-discrimination and privacy protection for all internet users,” Stephenson wrote in the ad.

AT&T’s proposal would attempt to include content regulation of websites under the guise of fairness, claiming that while internet service providers are expected to treat all content fairly, large websites like Google and Facebook currently do not. Critics of AT&T’s proposal call that a distraction that has nothing to do with ISPs seeking the right to establish paid internet fast lanes and favoring partnered websites with exemptions from data caps or speed throttles.

AT&T doesn’t inform readers of its own complicity in the “confusion” over net neutrality policies that have faced constant legal and political challenges from AT&T and other telecom companies. The telecom industry has furiously lobbied Congress and regulators to keep net neutrality from taking effect. Once it did, AT&T took the FCC to court to overturn the rules.

AT&T wants their own law for their own version of net neutrality.

AT&T’s campaign comes with some urgency as the company works to block states from enacting their own net neutrality laws to replace the rules abandoned by the Republican majority controlling the FCC. Despite assurances from FCC chairman Ajit Pai that the Commission would sue to pre-empt any state law that would re-establish net neutrality, AT&T and other large cable and phone companies prefer the regulatory certainty available from the quick passage of a federal law that would establish AT&T’s definition of net neutrality indefinitely. AT&T is also trying to rush passage with support from Republican congressional majorities and President Trump before the midterm elections threaten a Democratic takeover of the House, Senate, or both.

AT&T attempted to assuage customers of its good intentions by claiming it doesn’t block websites.

“We don’t censor online content. And we don’t throttle, discriminate, or degrade network performance based on content, period,” AT&T wrote (emphasis ours). But that claim opens the door to important loopholes:

  1. Speed throttles, data caps, and zero rating do not impact network performance. They impact your ability to equally access internet content, something AT&T does not promise here.
  2. AT&T only claims it won’t interfere with websites based on their content, but that was never the premise ISPs have used to demand additional payments from content creators. It isn’t the content ISPs are concerned with — it is the traffic those websites generate and, in the eyes of many net neutrality supporters, whether those websites compete with an ISPs own offerings. AT&T could have said it doesn’t throttle, discriminate, or degrade websites, period. But it didn’t.

AT&T alarmingly suggests that without predictable rules, next generation applications like virtual reality, telemedicine, and the Internet of Things will be threatened. Except that is not the message AT&T gives shareholders, arguing AT&T has robust capacity both now and into the future for next generation applications. AT&T has long promoted how lucrative it expects the Internet of Things marketplace will be.

Allowing the telecom industry to write its own “Internet Bill of Rights” met with harsh criticism from the consumer groups AT&T claims it wants to enlist in its efforts.

“Zero real net neutrality supporters are fooled by this,” wrote Fight for the Future executive director Evan Greer. “We had an Internet Bill of Rights. It was called Title II and AT&T’s army of lobbyists did everything in their power to burn it down.”

“AT&T’s hypocrisy knows no bounds,” said Free Press policy director Matt Wood. “Its phony bill of rights argument makes no sense based on the law, the policies, or the politics in play. AT&T’s head fake towards one-size-fits-all rules for all websites and content providers should fool no one. As soon as AT&T wants to stop lobbying against net neutrality, broadband privacy, and the other rights it has worked to kill at the Trump FCC and in this Congress, maybe people will stop laughing at desperate tactics like this. For now, all we can do is point out the company’s audacity in pretending that this hyper-partisan Congress can step in to fill the void of the net neutrality repeal by writing a new law tailor-made for AT&T.”

Verizon Has No Plans to Spend Tax Cut Bonanza on Network Upgrades

Phillip Dampier January 23, 2018 Verizon, Wireless Broadband 4 Comments

Verizon will spend most of the benefits gained from the Trump Administration’s tax cuts on writing off investments that will reduce the company’s tax exposure and boosting its dividend to shareholders.

Verizon’s chief technology officer Hans Vestberg told shareholders at an investment conference the company had no plans to spend the $3.5-$4 billion more in operating cash flow that will result from tax cuts on network upgrades, while it will continue to cut as much as $10 billion in costs out of its business over the next four years.

Verizon has attempted to converge its traditional wireline business with its wireless unit since buying out its partner Vodafone. As the two networks gradually merge, Verizon is continuing job cuts and expense reductions, even as the company will enjoy a $16.8 billion reduction in its deferred tax liabilities because of the new permanently lowered 21% corporate tax rate.

Vestberg argued Verizon was likely to waste money if it spent its anticipated windfall on accelerated network upgrades.

“You probably don’t want to have big spikes in the capital allocation because then in the end it drives inefficiencies. We want to be consistent,” Vestberg said. “From an execution point of view you want to be consistent. It’s not helpful to go up and down in capital allocation because it ramps up and down resources—money wasted … But we are always debating. And we should debate in a leadership team the size of Verizon.”

Verizon currently pays out more than three-quarters of its annual income to shareholders in the form of quarterly dividend payments. This morning, Verizon announced it would award 50 shares of restricted Verizon stock to virtually every employee except those in top management. On Tuesday, Verizon stock traded at around $53 a share, making the stock bonus potentially worth around $2,650 for each worker. But employees may not be permitted to sell their shares immediately. In earlier compensation packages that included restricted shares, the stock could not be sold for at least two years, and was subject to forfeit if an employee left the company during that window.

Verizon’s operating plan for 2018 includes a spending budget of $17 billion, an amount that has not changed as a result of the new tax law. Verizon is expected to allocate a significant amount of its budget towards its wireless services, particularly 5G development.

NY City Residents Can Watch Free Streams of 15 Local TV Channels… For Now

If you are a resident of New York City, you can now stream 15 over the air local television stations for free, at least until the station owners send their lawyers after the coalition running the new service.

Locast.org is owned and operated by Sports Fan Coalition NY, a non-profit organization best known for successfully petitioning the Federal Communications Commission to eliminate the Sports Blackout Rule that forced local broadcast stations near stadiums to black out a game if a team did not sell a certain percentage of tickets by a certain time prior to the game.

The group launched Locast to challenge the idea that those unable to receive good reception of over-the-air local stations need to subscribe to a pay television provider to get a clear and reliable picture. Cord-cutters, in particular, often fear the loss of local television stations when they drop their cable subscription. Locast is designed to make sure those relying on streamed entertainment can also get free broadcast television over their internet connection.

The service currently provides 15 channels that broadcast in New York City:

  • WABC (ABC)
  • WCBS (CBS)
  • WNBC (NBC)
  • WNYW (FOX)
  • WNET (PBS)
  • WLIW (PBS)
  • WWOR (MyNetworkTV)
  • WPIX (CW)
  • WPXN (Ion)
  • WNJU (Telemundo)
  • WFUT (UniMás)
  • WMBC (Ind.)
  • WLNY (Ind.)
  • WFTY (Justice Network)
  • WNYE (NYLIFE)

Viewers must live within the New York City television market to receive the service, and Locast enforces this with GPS and other similar location verification tools. Some residents of northern New Jersey complain they are unable to access the service, despite being within the New York City television market, a problem the group recognized and is attempting to fix. Viewers can watch the service on a desktop computer, mobile device, or tablet. There is no DVR service available at this time.

Stream quality is acceptable, but not stellar. In tests, we found the service suffered from occasional artifacts and was somewhat grainy. This would be particularly noticeable on a large screen television, much less so on portable devices. The picture was slightly better than Standard Definition. There were occasions when certain channels were unavailable and others suffered from streaming problems that caused portions of the audio or video to disappear. Remember, however, the service is new and free.

Locast offers a web-based interface.

The biggest challenge to Locast will not be the video quality of its streaming television channels. It will be dealing with lawyers.

Locast, like many similar services that came before it, relies on a novel interpretation of U.S. Copyright Law and the perceived loopholes it offers those who want to attempt to expand the definition of how consumers receive broadcast television signals. In this case, the service compares itself to a digital translator service similar to what some television stations use to distribute their signals to remote low-power translator stations that act as repeaters — providing better reception of stations that have trouble reaching parts of their local market.

Over the past two decades, several companies have tried and failed to offer independent online streams of television stations without the permission of station owners.

In 1999, iCraveTV provided more than a dozen Canadian and American television stations received over the air in Toronto made available to a nationwide online audience. The over-the-air stations (and the networks they affiliated with) in Buffalo, N.Y., promptly launched legal action against the company, challenging its claim it was entitled to offer the service because it was effectively a cable operator. International copyright law claims led to a preliminary injunction against the service and the threat of costly ongoing litigation convinced the owner of iCraveTV to stop the service in return for dropping lawsuits.

In 2011, ivi.tv streamed television signals from Seattle, Los Angeles, New York, and Chicago until a judge signed an injunction forcing those stations off the paid service. Several court actions against FilmOn.com, a similar service operating around the same time, also stripped most of its TV station lineup off the service.

The highest profile attempt to avoid getting permission from TV station owners to stream their programming came in 2012 with the launch of Aereo, which sought to exploit a perceived loophole in what constituted reception of a TV station. Aereo assigned a tiny antenna for each customer to receive over the air stations, starting in the New York City area. Stations received by that antenna were delivered to subscribers over an internet video stream. The idea was that Aereo was not distributing one TV signal for multiple customers. It was merely extending the concept of an ‘antenna’ to include internet delivery of signals to those verifiably living within the New York City television market.

Broadcasters ran up large legal bills to defeat Aereo in two major court cases. In 2014, the U.S. Supreme Court ruled against Aereo, claiming it breached copyright law. The service attempted one last effort to stay up and running, asking the U.S. Copyright Office for a copyright license after the Supreme Court seemed to call the service a “cable system.” Both the Copyright Office and a district court found Aereo was not entitled to a cable compulsory license and granted broadcasters a preliminary injunction that effectively put Aereo out of business.

All of these ventures attempted similar arguments that Locast is now using to justify why it should be allowed to distribute live streams of local television stations without the consent of station owners. The courts have traditionally bowed to the broadcasters and their allied lobbyists, television networks, and pay television providers that would feel threatened if a service like Locast gave away for free what they sell to consumers.

The Sports Fan Coalition’s legal justification comes from an exception Congress made to the copyright law’s insistence that permission from a station owner was required to redistribute their signal, unless one operated a cable system.

“Any ‘non-profit organization’ could make a ‘secondary transmission’ of a local broadcast signal, provided the non-profit did not receive any ‘direct or indirect commercial advantage’ and either offered the signal for free or for a fee ‘necessary to defray the actual and reasonable costs’ of providing the service. 17 U.S.C. 111(a)(5),” the group argues. “Sports Fans Coalition NY is a non-profit organization under the laws of New York State. Locast.org does not charge viewers for the digital translator service (although we do ask for contributions) and if it does so, will only recover costs as stipulated in the copyright statute. Finally, in dozens of pages of legal analysis provided to Sports Fans Coalition, an expert in copyright law concluded that under this particular provision of the copyright statute, secondary transmission may be made online, the same way traditional broadcast translators do so over the air.”

Traditionally, ‘secondary transmission’ has meant a building or complex owner receiving a station over the air from a rooftop antenna and providing it to tenants or residents over a Master Antenna TV coaxial cable connection (or similar technology). College campuses, hospitals, and other multi-dwelling unit owners often provide similar wired reception of over the air stations as well, to assure quality reception.

Translator stations that pick up and repeat a television station on an adjacent channel to offer better reception in difficult-to-reach viewing areas typically run with the full consent, or are owned by, the television station they rebroadcast.

Locast attempts to broaden the definition of ‘secondary transmission’ to include distribution over the internet through video streaming. Although their expert in copyright law believes this is permissible, there are multiple court cases where judges have ruled against these types of services when a broadcaster objects. Locast will likely face time in a courtroom arguing for its right to exist, something the venture readily admits is likely to happen.

GOP Tax Cut Law Will Deliver $14.4 Billion to Comcast for Mergers, Share Buybacks by 2021

Phillip Dampier January 18, 2018 Comcast/Xfinity, Consumer News, Public Policy & Gov't 1 Comment

The Republican-pushed corporate tax rollback will bring a $14.4 billion increase in available cash flow for Comcast to use for future mergers and acquisitions or share buybacks by 2021, even as the cable company has no plans to share its tax savings bonanza with subscribers in the form of lower rates.

MoffettNathanson analyst Craig Moffett noted Comcast will likely only spend the largess on two things — acquiring other companies to further concentrate the media marketplace or, more likely use its newly available cash flow on a blockbuster share buyback program, which will boost Comcast’s stock price and deliver dramatically higher bonuses to the company’s top executives.

Moffett believes Comcast is following in the footsteps of Time Warner Cable a decade ago, shortly after the company was split away from Time Warner, Inc. The former Time Warner Cable fueled interest in its stock by committing to keep its leverage at a stable 3.25 x EBITDA, which means it would not be spend a lot of money or take on a lot of debt to upgrade its cable systems, make expensive acquisitions, or cut rates for subscribers. As a result, Comcast’s free cash will quickly accumulate, which it will either use to buy other companies, return to investors in the form of a dividend payout, or buy back large numbers of shares of its own stock, making shares already owned by investors more valuable. Since most executive compensation packages tie bonuses to the share price of the company’s stock, and often include stock share awards for executives, top officials can take home tens of millions of dollars in bonuses.

The Trump Administration claimed the dramatic cut in the corporate tax rate from 35% to 21% would create new investment, result in new job creation and higher pay. But at Comcast, its existing investment plans developed before the tax cut law was passed remain largely unchanged, the company laid off nearly 1,000 workers in the last month, and so far has only committed to giving qualified employees a one-time $1,000 bonus, which will cost the company a one time charge of less than $150 million — about 1.04% of Comcast’s tax cut cash haul.

More Rogers Employees Speak Out: “A Calculated Game of Misery” for Customers

Phillip Dampier January 18, 2018 Canada, Consumer News, Rogers Comments Off on More Rogers Employees Speak Out: “A Calculated Game of Misery” for Customers

Rogers Communications’ call center workers treated customers as adversaries and allegedly placed unauthorized charges on customer bills, didn’t disclose service fees, and avoided downgrading or disconnecting service while managers encouraged these practices and lectured workers it was not their job to worry about what customers thought.

Days after CBC News’ Go Public unit revealed stories of customer abuse shared by Rogers’ call center workers, more than two dozen additional current and former workers have now come forward confirming the first report and declaring the company’s call center work environment was uniformly “toxic,” “intense,” “high pressure,” and abusive to employees and customers alike.

“It was a calculated game of misery.” 

Rogers management cares about only one thing, employees claim — making money any way a representative can, even if it means pushing products and services on unsuspecting customers.

A four-year employee at Rogers call center in Brampton, Ont., who left in 2015, still vividly remembers he was trained to trick customers at every turn.

  • He and his colleagues were trained not mention cancellation fees charged by other providers when a customer switched to Rogers.

“Because these fees were not charged by Rogers itself, we were told to gloss over them as quickly, vaguely and incoherently as possible,” he writes. “Often while the customer was speaking at the same time.”

  • Agents were shown how to quietly remove some services from a customer’s account while adding others that counted towards a monthly sales goal, hoping the customer wouldn’t notice.

This trick, he told CBC News, involved secretly reducing certain services — such as the number of television channels a customer received — so an agent could add new services, such as a home phone line they didn’t necessarily need, but that earned points towards monthly sales target.

“It was a calculated game of misery,” he says. “How much could you lower their existing services so they wouldn’t immediately notice, while at the same time adding as much in new services as you could?”

“It’s not your job to care.”

In its original report, CBC News quoted a Rogers spokesperson who denied knowledge of these practices and declared there was no tolerance for employees who mistreated customers. But the latest group of employees to come forward consider the abuses systematic and occurred with the full knowledge of company managers and supervisors.

The former worker in Brampton noted that when he brought concerns to his manager questioning the ethics of some of the business practices he was reminded he worked in sales and was told, “It’s not your job to care.”

Intentionally Frustrating Customers Until They Give Up and Hang Up

If a customer called in to complain about something on their bill, downgrade, or cancel service — all things that could affect sales targets, it was ‘all hands on deck’ among call center workers and their colleagues. In addition to hanging up on customers trying to cancel service, Rogers customer service representatives tricked customers trying to escalate a problem to a manager. Instead of transferring calls to an actual manager, employees were taught to transfer the call to a fellow agent who was prepared to repeat claims there was nothing Rogers could do to resolve the issue.

“The goal,” he says, “was for the customer to be so frustrated, speaking to someone who couldn’t do anything more than you, that they ended the call.”

“The things that go on behind closed doors would leave you speechless.”

Debbie Sears (Image courtesy of: Debbie Sears/CBC)

Making a call to Rogers’ customer service can be risky business for customers, because it gives call center workers access to your account, where they can add services without your knowledge to help make their monthly sales targets.

Nicole McDonnell worked at a third-party call center in London, Ont., contracted with Rogers to provide customer service. She quit three months ago disturbed about what she saw. She told CBC News she witnessed agents making unauthorized changes to customer accounts, such as adding lucrative cellphone activation charges without the knowledge of the customer.

“The things that go on behind closed doors would leave you speechless,” she writes.

Debbie Sears echoed McDonnell. Taking calls from her home office in Kingston, N.S. through a subcontractor, Sears was trained to do one thing above all else: sell.

“We were constantly being threatened that we would be fired if we did not upsell — add a home line or a cellphone to the account,” she says. “It was a pressure cooker. They expected you to sell on every call. And you were told time and again, ‘Never take no for an answer. Push, push, push!'”

Sears said she was trained to push phone protection plans for cellphones for $12 a month, but was told not to mention a replacement fee of up to $200 applied if a customer ever made a claim. Other times, she claims, managers would approve cellphone sales even when a credit check suggested a customer was opening a fraudulent account or had very poor credit.

“I have a hard time selling something that’s useless to them [customers],” says Sears. “I told them right from the start, and they said, ‘Oh well, you’ll get used to it.'”

Apparently not. Sears said she began having panic attacks before her shift would begin and her blood pressure “went through the roof.”

Like other Rogers employees that don’t make their sales targets, she was eventually terminated.

“My doctor was very worried I’d have a stroke,” she says. “When I got laid off [for not selling], they did me a favor.”

Former Rogers Manager: ‘My job was to manage out the low performers — witch-hunt those people. Grown men would be crying.’

One former Rogers manager reached out to Go Public to share how he was trained to put pressure on workers in the Ottawa call center.

The pressure for sales reached a new level of intensity in 2015 when Rogers issued a memo directing senior leadership to light a fire under call center workers to get them to sell more services. At least two-thirds of all call center workers were placed on a “performance improvement plan” that most employees understood was the kiss of death to their employment in the near future. The message was perfectly clear – sell more or risk being terminated.

CBC:

“Every day we’d have a meeting about sales targets,” he says. “A big part of my job was to manage out the low performers. Witch-hunting those people.”

On the other hand, he says, top sellers were protected — even if they behaved unethically.

“Senior leadership would often issue directives to the team managers to protect their top-level performers by turning a blind eye,” he says. “Protect the tops.”

Once an employee found themselves assigned to the “performance improvement plan,” managers knew most would have to go, and they had no patience for anything except a radical turnaround. If the employee still struggled making sales, their future was bleak. The ex-manager told CBC News he would squeeze every minute out of their last day at the company, tapping them on the shoulder five minutes before the end of their shift to put them in a private room, and then fire them.

“Grown men would be crying, desperate because they couldn’t sell enough,” he says. “But sales was everything.”

When it got too much for even him and he began questioning Rogers’ way of doing business, he was fired too.

‘Shocking and appalling’

Vancouver labor lawyer Lia Moody says she’s been following the Rogers employees’ allegations, and finds them “shocking and appalling.”

Moody told the CBC Rogers’ apparent business practices ‘contravenes what Canadians consider their ethics and values.”

“I think it’s important that people are speaking out. Public shaming,” she says, “is the only way a company will make changes.”

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