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Here’s What You Need to Know About Comcast’s Xfinity Mobile

Phillip Dampier April 10, 2017 Comcast/Xfinity, Competition, Consumer News, Wireless Broadband Comments Off on Here’s What You Need to Know About Comcast’s Xfinity Mobile

Comcast, the nation’s largest cable television operator, will compete for wireless customers with a new no-contract wireless plan that combines Verizon Wireless’ mobile network with Comcast’s installed base of 16 million hotspots installed in customer homes and businesses.

Xfinity Mobile will offer two plans — a pay as you go option for $12/GB and an unlimited calling, texting, and data plan that ranges from $45-65 a month. Customers spending about $150 or more on a Comcast X1 bundle of services will pay the lesser amount, while those with a more basic package will pay more. Customers must at least subscribe to Xfinity Internet service to qualify for the new wireless plan and live in a Comcast service area.

Comcast is powering its cell phone service with its MVNO agreement with Verizon Wireless, which grants the cable company the right to resell Verizon’s wireless network under the Xfinity brand. But Comcast hopes customers will use their devices the most while connected to an Xfinity Wi-Fi hotspot, available in most Comcast customer homes and an extensive network of businesses. To make sure that happens, devices acquired from Comcast will come pre-configured to automatically connect to Comcast’s Wi-Fi, where available.

Comcast’s “unlimited” $65 plan — likely to be the most popular option, is between $15-25 less than what Verizon and AT&T charge their customers for a comparable plan, at least for accounts with just a single device attached. Like other “unlimited” plans, Comcast has a fine print data cap: 20GB of wireless data usage per month, after which it will throttle the customer’s connection until the next billing cycle begins. Comcast intends to always impose the speed throttle once 20GB is reached, not just in areas with congested cell towers. But throttled speeds will be a less maddening 1.5Mbps instead of the usual 128kbps most carriers use to punish their data-heavy users.

Overall, the plan may deliver some savings to current Comcast customers unfazed by signing up for a “quad play” bundle of wireless, phone, TV, and internet access, especially for those bringing a single wireless line to Comcast. Customers with multiple wireless devices on a family plan may want to do the math before signing up with Comcast. Unlike other wireless carriers, Comcast does not offer a discount for additional lines. For most, the price will be $65 a month for each line. For an account with four lines, that would amount to $260 a month — $75 more than what AT&T charges for a similar four-line plan.

Comcast may also attract some interest from light users or those with devices like tablets. Comcast’s $12/GB data plan has no limits or minimum charges. If a customer doesn’t use the plan, there are no charges. If a customer on this plan approaches 4GB of usage in a billing cycle, they can upgrade to Xfinity’s unlimited wireless plan ($45-65) mid-month and then use up to 20GB of data with no extra charges or speed throttles. Customers can put some devices on an unlimited plan and others on a pay-as-you-go plan on the same account.

Early adopters ready to sign up when the service launches this May or June will need to buy new devices from Comcast. The company will sell current generation Apple iPhones, Samsung Galaxy smartphones, and a budget option from LG Electronics. Customers can pay for devices upfront or receive interest-free financing.

Comcast’s interest in entering the wireless business represents the latest effort to keep customers locked into Comcast’s suite of products and services. The more services a customer bundles with Comcast, the more disruptive it will be to switch to another provider.

“The economics really work,” Comcast CEO Brian Roberts said in January. “The goal of the business is to have better bundling with some of our customers who want to save on some of their bill and get a world-class product.”

Because Comcast will rely entirely on Verizon Wireless to provide cellular connectivity, the cost of getting into the mobile business is relatively low. Comcast struck a deal with Verizon several years ago giving the cable company “perpetual” access to Verizon Wireless, as well as any upgrades Verizon makes to its network in the future. However, Verizon still has the right to raise prices on Comcast, potentially slowing or stopping Xfinity Wireless from ever growing large enough to threaten Verizon’s profits.

Charter Communications is planning to introduce a similar wireless product in 2018.

Verizon Sued for “Knowingly Billing Customers for Fraudulent Charges”

Phillip Dampier April 5, 2017 Consumer News, Public Policy & Gov't, Verizon, Wireless Broadband Comments Off on Verizon Sued for “Knowingly Billing Customers for Fraudulent Charges”

Verizon will conveniently add fraudsters’ phone and service orders to your wireless bill until you catch the illegitimate charges and complain.

That is the basis of a new class action lawsuit filed in New York accusing the wireless company of billing customers for fraudulently obtained equipment and service.

Brooklyn lawyer Lowell Sidney told the New York Post it took five months of “autopay” charges almost $100 higher than normal before he noticed someone had obtained a new smartphone and service and billed it to his Verizon Wireless account.

“[Verizon] Fraud Services said that on Oct. 22, 2016, an unknown person entered a Best Buy store in Wesley Chapel, Florida, claimed to be [Sidney], and ordered a cellphone and phone service from Verizon,’’ the suit said. When Best Buy asked for ID, the imposter ran out of the store.

But that did not stop Verizon from running up Sidney’s bill for several months of phone financing installments and service charges.

Sidney’s lawyer told the newspaper it was clear the guy was a crook, but that did not stop Verizon from collecting money it knew didn’t belong to them.

Verizon’s fraud department confirmed Verizon’s corporate policy is not to notify customers about potential, suspected, or actual fraud. It is entirely up to customers to identify suspicious charges and prove to Verizon’s satisfaction those charges are illegitimate.

“The woman I spoke to was very candid — ‘That’s our policy,’” reported an outraged Sidney, and he’s suing to make the point Verizon should be doing a better job of protecting customers and should not be collecting money to which it is not entitled. He wants at least $75,000 in damages and wants other Verizon customers affected by fraud to receive settlements as well. He is also taking his business elsewhere after 17 years with Verizon.

“I am not sure if the competition provides comparable service, but to my knowledge, they don’t actively engage in defrauding their own customers,” Sidney said.

Sidney warns that “autopay” and electronic billing make it more difficult for consumers to scrutinize their bills and catch fraudulent charges because they have to seek out a monthly statement instead of getting one sent directly to them.

AT&T Blames Labor Costs for High Cost of Fiber Expansion

Phillip Dampier April 5, 2017 AT&T, Consumer News Comments Off on AT&T Blames Labor Costs for High Cost of Fiber Expansion

AT&T wants to pass 12.9 million homes with its fiber to the home upgrade, but is upset about the price of those doing the work.

In an effort to cut costs, Fierce Telecom reports AT&T is discontinuing the practice of having two technicians prepare a home or business for fiber — one working outdoors on the fiber drop to the home and the other installing inside equipment like wiring, set-top boxes and gateways. Now one AT&T technician or subcontractor is expected to do it all.

“Originally we had a technician who placed the fiber drop and ONT [optical network terminal] on the side of the home and then they turned it over a technician inside the house that get the customer going with their services,” said Kent McCammon, lead member of technical staff at AT&T Labs. “The desire was to have what was formerly called the inside technicians perform the fiber drop, but in order to do that we had to train technicians who were not using to dealing with fiber.”

An AT&T Fiber cable placed on a pole in Dunwoody, Ga. (Image: Heneghan’s Dunwoody Blog)

To simplify training and cut costs, AT&T has been using field installed mechanical connections and pre-connectorized fiber drops, which means the installer no longer has to manually splice fiber cable connections, saving time. But as a result the technicians can no longer test the actual performance of the fiber connection to the home.

“When the technicians did a mechanical connection, you don’t have the visibility like you do with a fusion splicer where you can actually see it’s a good connection,” McCammon said. “[Once] the ONT’s green light turned on […] they left whether it was well done or not.”

That has been a risk AT&T is willing to take to speed expansion of fiber service to more of its customers, but it has also increased the number of service calls when customers are left with substandard service.

“In our recent analysis we did a few weeks ago, we’re seeing lines with variable optical power,” McCammon said, a sure sign there is a technical fault. “It’s 5% of the areas where we have installed fiber so 95% of the cases have a good connection.”

In most cases, McCammon said problems are usually the result of a bad connector and when it is replaced, power levels return to normal. It’s up to customers to notice a problem and call it in for now, but AT&T is studying whether optical time-domain reflectometer (OTDR) capability could be deployed to detect problems like air gaps or high reflection points inside the fiber.

AT&T is also reviewing how future fiber technologies can co-exist with AT&T’s current GPON fiber network. The technologies that can currently overlap AT&T’s GPON network are XGS-PON and NG-PON2. AT&T is currently reviewing XGS-PON to see if it would be suitable to deploy symmetrical 10Gbps service in the future.

“We’re getting started XGS-PON,” McCammon said. “We have it in the lab and we’re starting the IT work on that system right now, and unless something changes, that’s where we’re headed after GPON for consumer and potentially for business.”

John Malone’s Liberty Interactive Buying Alaska’s GCI for $1.12 Billion

Phillip Dampier April 4, 2017 Consumer News, GCI (Alaska) 1 Comment

Cable magnate John Malone’s Liberty Interactive today announced it would acquire Alaska’s largest cable operator General Communication, Inc. (GCI) for $1.12 billion in an all-stock transaction.

Malone is the biggest individual shareholder of Charter Communications, Inc., and has decades of experience running cable companies in the lower 48 states and abroad. He also has experience structuring deals to avoid the U.S. tax authorities, and this deal is no different. Malone will pay zero taxes on the transaction by creatively spinning off the cable operator, first rechristening it as QVC Corp (named after his home shopping channel), then combining QVC Corp with Liberty Ventures and splitting off the combined company to existing Liberty Ventures shareholders. When the transaction is complete, Malone will again rename the cable company GCI Liberty and keep all the proceeds for himself and his shareholders.

GCI’s 108,000 customers won’t see any changes at the cable company and wireless venture this year. The deal is not scheduled to close until 2018.

GCI’s oldest customers may recall John Malone used to own the Alaskan cable operator, but under a different name. Until 1986, it was part of Malone’s Tele-Communications, Inc. (TCI) empire.

Expensive and usage-capped.

Malone’s operating philosophy these days is best represented by Charter Communications. GCI customers can eventually expect to see a dramatically simplified menu of choices for broadband, television, and telephone service. Broadband from GCI is expensive and usage-capped. Its $60 entry-level plan offers 50/3Mbps service that is “speed reduced” after 50GB of usage a month. For that reason, many customers prefer GCI’s “Faster” plan of 100/5Mbps service for $84.99 a month, with speeds curtailed after 250GB of usage. A gigabit tier is available in certain locations offering 1,000/50Mbps for $174.99 a month, speed-throttled after 1TB of usage.

A Note to Readers About Charter, Time Warner Cable, and Bright House Networks

With the transition from Time Warner Cable and Bright House Networks to Charter Communications now complete, starting today all stories referring to Charter/Spectrum, Time Warner Cable or Bright House Networks will be found under “Charter Spectrum” in our provider list.

Regardless of the name change, media reports from around the country have little positive to say about customers’ experiences with “New Charter.”

Industry consolidation from mergers and acquisitions does nothing to improve competition, something essential to fix the broken broadband market in the United States, as this PSA illustrates:

 

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