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Verizon Thumbs Its Nose at FCC: Will Lock Smartphones Despite Agreement Prohibiting It

Verizon Wireless, ignoring its agreement with the Federal Communications Commission not to lock handsets, will soon stop selling unlocked phones, at least temporarily preventing customers from taking their phones to another carrier or overseas without Verizon’s consent.

Verizon’s ‘SIM Lockdown’ is expected to begin later this year in a move Verizon is calling a “theft control measure.”

Verizon Wireless is the only major carrier that does not lock its smartphones, but that policy was agreed to as a condition of its acquisition of 700 MHz spectrum licenses in 2008, which included a prohibition on phone locking. But Verizon seems to think its new locking policy doesn’t break any rules or that nobody will care.

“We’re taking steps to combat this theft and reduce fraud. These steps will make our phones exponentially less desirable to criminals,” Tami Erwin, executive vice president of wireless operations for Verizon, said in a statement to CNET.

After the change takes effect, Verizon Wireless customers will find their new handsets locked and unable to be used with other carriers until activated on a new or existing Verizon Wireless account. After that, Verizon says it will still keep the phone locked for an unspecified waiting period to prevent cell phone thieves from stealing a phone, activating it with a stolen identity, and then selling it for profit. Verizon won’t say exactly when customers will be able to get their devices unlocked.

With an industry friendly Republican majority on the Federal Communications Commission, Verizon may be attempting to test the waters to see if it can successfully walk away from its agreement with the FCC without penalty or even win itself a waiver. But FCC rules don’t appear to give Verizon the leeway it needs to unilaterally act:

§ 27.16 Network access requirements for Block C in the 746-757 and 776-787 MHz bands.

(a)Applicability. This section shall apply only to the authorizations for Block C in the 746-757 and 776-787 MHz bands assigned and only if the results of the first auction in which licenses for such authorizations are offered satisfied the applicable reserve price.

(b)Use of devices and applications. Licensees offering service on spectrum subject to this section shall not deny, limit, or restrict the ability of their customers to use the devices and applications of their choice on the licensee’s C Block network, except:

(1) Insofar as such use would not be compliant with published technical standards reasonably necessary for the management or protection of the licensee’s network, or

(2) As required to comply with statute or applicable government regulation.

(c)Technical standards. For purposes of paragraph (b)(1) of this section:

(1) Standards shall include technical requirements reasonably necessary for third parties to access a licensee’s network via devices or applications without causing objectionable interference to other spectrum users or jeopardizing network security. The potential for excessive bandwidth demand alone shall not constitute grounds for denying, limiting or restricting access to the network.

(2) To the extent a licensee relies on standards established by an independent standards-setting body which is open to participation by representatives of service providers, equipment manufacturers, application developers, consumer organizations, and other interested parties, the standards will carry a presumption of reasonableness.

(3) A licensee shall publish its technical standards, which shall be non-proprietary, no later than the time at which it makes such standards available to any preferred vendors, so that the standards are readily available to customers, equipment manufacturers, application developers, and other parties interested in using or developing products for use on a licensee’s networks.

(d)Access requests.

(1) Licensees shall establish and publish clear and reasonable procedures for parties to seek approval to use devices or applications on the licensees’ networks. A licensee must also provide to potential customers notice of the customers’ rights to request the attachment of a device or application to the licensee’s network, and notice of the licensee’s process for customers to make such requests, including the relevant network criteria.

(2) If a licensee determines that a request for access would violate its technical standards or regulatory requirements, the licensee shall expeditiously provide a written response to the requester specifying the basis for denying access and providing an opportunity for the requester to modify its request to satisfy the licensee’s concerns.

(e)Handset locking prohibited. No licensee may disable features on handsets it provides to customers, to the extent such features are compliant with the licensee’s standards pursuant to paragraph (b)of this section, nor configure handsets it provides to prohibit use of such handsets on other providers’ networks.

(f)Burden of proof. Once a complainant sets forth a prima facie case that the C Block licensee has refused to attach a device or application in violation of the requirements adopted in this section, the licensee shall have the burden of proof to demonstrate that it has adopted reasonable network standards and reasonably applied those standards in the complainant’s case. Where the licensee bases its network restrictions on industry-wide consensus standards, such restrictions would be presumed reasonable.

Verizon’s old unlocking policy.

Verizon does not need to lock phones to control stolen device trafficking. An earlier initiative by the wireless industry tracks stolen phone IMEI and other identification numbers that are needed to activate service. If a carrier gets a request to activate service on a phone or device with a suspect IMEI number, the carrier can refuse service, rendering the phone useless on the stolen goods market. But Verizon may have other motives in mind.

“This is going to make it harder for rivals to poach subscribers from Verizon,” Avi Greengart, an analyst at Global Data, told CNET, because customers bringing their Verizon smartphones to other carriers may find they cannot use them on the competitor’s network. The phones also won’t work if a customer travels abroad and uses a SIM card purchased in the destination country, which could offer substantially lower rates than Verizon’s international calling and data plans or roaming.

Few consumers would be willing to buy new phones for $600+ just to switch carriers, a fact Verizon is likely well aware will keep customers loyal to them.

C Spire Partners With Entergy to Bring Fiber Service, Smart Grid to Rural Mississippi

Phillip Dampier February 13, 2018 Broadband Speed, C Spire, Consumer News, Rural Broadband Comments Off on C Spire Partners With Entergy to Bring Fiber Service, Smart Grid to Rural Mississippi

C Spire, an independent wireless company providing service in the southern United States is partnering with electric utility Entergy to jointly construct a new fiber optic network in remote sections of Mississippi to manage an electric smart grid and fiber broadband service.

C Spire will own and build the network, with Entergy contributing construction costs, according to C Spire vice president of government relations Ben Moncrief. The partnership grants Entergy leasing rights to use the fiber optic network to develop smart grid technology for rural Mississippi electric customers. Five individual fiber routes will be build, each with a capacity of 144 or more strands of fiber. Entergy will have exclusive use of its own fiber strands, but C Spire will get most of the capacity to power its backhaul facilities, including its network of cell towers, and eventually deploy the network for commercial and institutional users, with the possibility of expanding service to home and small businesses customers if there is adequate demand.

The fiber network will be uncharacteristically placed in some of the most rural parts of the state’s push to redevelop its rural economy to support digital businesses. C Spire itself has been in transition over the last five years, diversifying its core cellular business into fiber to the home broadband, phone, and television service targeting underserved, smaller communities across the state.

“A robust broadband infrastructure is critical to the success of our efforts to move Mississippi forward by growing the economy, fostering innovation, creating job opportunities and improving the quality of life for all our residents,” said Hu Meena, CEO of C Spire.

C Spire/Entergy Mississippi’s new fiber project

The construction project will involve placing fiber optic cable along five separate routes:

  • Delta: 92 miles of fiber through Sunflower, Humphreys, Madison and Hinds counties and near the cities of Indianola, Inverness, Isola, Belzoni, Silver City, Yazoo City, Bentonia, Flora and Jackson.
  • North: 51 miles in Attala, Leake and Madison counties, including the communities of McAdams, Kosciusko and Canton.
  • Central: 33 miles in Madison, Rankin and Scott counties and near the towns of Canton, Sand Hill and Morton.
  • South: 77 miles passing through Simpson, Jefferson Davis, Lawrence and Walthall counties and near the towns of Magee, Prentiss, Silver Creek, Monticello and Tylertown.
  • Southwest: 49 miles in Franklin and Adams counties near Bude, Meadville, Roxie, Natchez and Eddiceton.

C Spire got the idea to collaborate with the electric utility after the Mississippi Public Service Commission inquired if Entergy’s plans to build a fiber optic smart grid network could also be used to develop improved broadband service for rural Mississippi. Entergy and C Spire decided to collaborate on the project to deliver both services over the same network.

Charter Seeks Favorable Licensing Terms for New Mobile/Rural Wireless Broadband Service

Phillip Dampier February 12, 2018 Charter Spectrum, Consumer News, Public Policy & Gov't, Rural Broadband, Wireless Broadband Comments Off on Charter Seeks Favorable Licensing Terms for New Mobile/Rural Wireless Broadband Service

There are three tiers of Citizens Broadband Radio Service users – incumbent users (usually military) that get top priority access and protection from interference, a mid-class Priority Access License group of users that win limits on potential interference from other users, and unlicensed users that have to share the spectrum, and interference, if any.

Charter Communications wants to license a portion of the 3.5 GHz Citizens Broadband Radio Service (CBRS) band to launch a new wireless broadband service for its future mobile customers and potentially also offer its own rural broadband solution.

The CBRS band has sat largely unused except by the U.S. military since it was created, but now the Federal Communications Commission is exploring opening up the very high frequencies to attract wireless broadband services with Priority Access Licenses that will assure minimal interference.

One of the most enthusiastic supporters of CBRS is Charter/Spectrum, which has been testing a 3.5 GHz wireless broadband service using CBRS spectrum in Centennial and Englewood, Col., Bakersfield, Calif., Coldwater, Mich., and Charlotte, N.C. Those tests, according to Charter, reveal the cable company “can provide speeds of at least 25/3 Mbps at significant distances,” which it believes could become a rural broadband solution for customers outside of the reach of its wired cable network.

But Charter’s interest in CBRS extends well beyond its potential use to reach rural areas. Charter’s primary goal is to offer wireless connectivity in neighborhoods for its forthcoming mobile phone service. Charter plans to enter the wireless business this year, selling smartphones and other wireless devices that will depend on in-home Wi-Fi, CBRS, and a contract with Verizon Wireless to provide coverage everywhere else.

Charter wants to keep as much data usage on its own networks as possible to reduce costs. It has no interest in building a costly, competing LTE 4G or 5G wireless network to compete with AT&T, Verizon, Sprint, and T-Mobile. But it is interested in the prospect of using LTE technology on CBRS frequencies, which are likely to be licensed at much lower costs than traditional mobile spectrum.

Primary Economic Areas

There are several proposals on the table on how to license this spectrum. Large wireless companies want Priority Access Licenses (PALs) based on Partial Economic Areas (PEAs) — 416 wireless service areas the FCC established as part of its spectrum auctions. PEAs are roughly equivalent to metropolitan areas and typically cover multiple counties surrounding a major city. Major wireless carriers are already familiar with PEAs and their networks cover large portions of them.

Charter is proposing to license PALs based on county lines, not PEAs, which will likely reduce the costs of licensing and, in Charter’s view, will “attract interest and investment from new entrants to small and large providers.” If Charter’s proposal is adopted, its costs deploying small cell technology used with CBRS will be much lower, because it will not have to serve larger geographic areas.

The FCC envisioned licensing PALs based on census tract boundaries, which would result in licenses for areas as small as portions of neighborhoods. That proposal has not won favor with like wireless companies or cable operators. The wireless giants would prefer licenses based on PEAs, but companies like AT&T seem also amenable to the cable industry proposal.

Charter’s proposed CBRS network would likely allow the cable company to offload a lot of its mobile data traffic away from Verizon Wireless, reducing the company’s data costs. Charter’s deployment costs are relatively low as well, because the backhaul fiber network used to power small cells is already present throughout Charter’s service areas.

Just how far into rural unserved areas Charter’s CBRS network can reach isn’t publicly known, but it would likely not extend into the most difficult-to-serve areas far away from Charter’s current infrastructure. But if the FCC establishes county boundaries and a requirement that those companies obtaining priority licenses actually serve those areas, it could help resolve some rural broadband problems.

Charter Spectrum Will Only Talk to Theresa Peartree’s Dead Ex-Husband About Her Account

Phillip Dampier February 9, 2018 Charter Spectrum, Consumer News, Editorial & Site News 8 Comments

He’s dead. Death notice for Richard Peartree published in the Democrat & Chronicle on Oct. 13, 1992.

Charter Communications’ inability to exercise common sense judgment in helping their customers is demonstrated once again by what we call: The Case of Mrs. Peartree and Her Curious Cable Bill. 

Theresa Peartree, a retiree living in Rochester, N.Y., and a customer of “the cable company” under its various names for more than 30 years, has a problem.

Spectrum won’t talk to her. About anything.

Peartree called the cable company to ask why her bill has increased a few dollars a month starting last fall. Spectrum effectively told her it’s none of her business because the account is in the name of her ex-husband, who died in 1992.

Time Warner Cable and Greater Rochester Cablevision — the former names of what today is Spectrum, understood Peartree’s situation and were willing to talk to her about her account, although nobody bothered to suggest she change the name on the account along the way. Spectrum will not talk to her, until she obtains a certified copy of her ex-husband’s death certificate and walk it down to the company’s notoriously overpacked customer service center on Mt. Hope Avenue in the city. Peartree is 89 years old and walks with a cane.

Spectrum’s customer service told Peartree it was easy to get a copy of a death certificate because “they’re a public record.” But most Spectrum customer service representatives are not attorneys or legislators, because if they were, they would have realized the advice they were giving about death certificates in New York was dead wrong.

So Mrs. Peartree and Spectrum are at an impasse. She took her plight to a local talk radio show and finally to David Andreatta, a feisty and occasionally exasperated columnist for the Rochester Democrat & Chronicle, where he usually covers the insanity of local and state politics.

He visited with Peartree and listened in on the legal advice being given by the cable company’s call center employee.

Andreatta knows Spectrum’s claim that death certificates are public records was not quite right:

No, they’re not. In New York, they’re semi-public. If the deceased person has been dead for 50 years, his or her death certificate is public record. If not, only spouses, parents, children or siblings of the deceased are entitled to the death certificate. Exes don’t count.

Others eligible to obtain a death certificate under the law are those with a medical need, a documented lawful claim to receive a benefit or a court order from a state judge.

Peartree has none of those. Her declaration that, “TV is my life,” is a metaphor. Her cable isn’t a “medical need” and her desire to learn why she’s being charged $4 a month more isn’t a “benefit.”

Peartree (Photo courtesy of: Rochester Democrat & Chronicle/Shawn Dowd)

In short, Peartree is trapped by Spectrum. She cannot even close her account because they won’t talk to her. The only chance she has, assuming the public shaming of Spectrum proves ineffective in getting them to budge, is to present herself as a hardship case at the Monroe County Office of Vital Records in hopes of getting them to produce a copy.

But in Monroe County, where the county government prides itself on holding the line on the property taxes (already among the highest in the country) but makes up the difference by charging astronomical fees for almost any county service, that photocopy will cost her $40 — ten times the amount her bill increased last fall.

“They take my money every month,” she told Andreatta, showing him her checkbook with hers being the only name on the account. “They take my money, but they won’t answer my questions.”

“I know they say you can’t believe everything you read in the newspapers, Spectrum, but believe this: Richard is dead and the house you think is his isn’t his,” Andreatta wrote. “It would take a few minutes for your customer service rep to transfer the account in Richard’s name to Peartree’s and tell her why her bill rises $4 a month.”

But so far they won’t. But we can at least answer her question. The additional fees are the result of an increase in Spectrum’s bill padding Broadcast TV Surcharge ripoff and a more recent rate increase on certain cable equipment rental fees.

Andreatta is somehow not surprised:

Ever since Time Warner was rebranded as Spectrum, more readers have asked me to write about their problems with the cable TV and internet provider than any other topic.

I’ve always declined, mostly because their problems were so generic. Their internet was slow. They didn’t want to pay for channels they didn’t watch. That four-hour window for home service.

It was, like, join the club. Cable companies by any name have always been a racket, regularly ranking below airlines, banks and drug makers in opinion polls. What could I do about it?

Fidelity Communications Caught Running Astroturf Website to Kill Broadband Competition

Sock Puppet “consumer group” opposing municipal broadband in Missouri is outed by their own website.

Fidelity Communications, a small Missouri-based independent cable operator providing service in Missouri, Oklahoma, Arkansas, Louisiana and Texas, has been outed as the creator and backer of a ‘grassroots’ group trying to prevent West Plains, Mo., from launching a public broadband network that would directly compete with Fidelity.

West Plains, a community of 12,000 in south-central Missouri, runs a public fiber network originally envisioned connecting city buildings, a local medical center, fire, police, and highway offices together. Local cable company Fidelity Communications had shown no interest in providing fiber connectivity in West Plains, so city officials explored the idea of building a city owned and operated fiber network itself. As word spread around town that fiber broadband was under consideration, locals began lobbying city officials to open the network up for private commercial and residential users as well.

By January 2016, supported by a dozen major employers willing to participate as network “anchors,” the city of West Plains got into the internet provider business.

West Plains has been challenged by a lack of digital infrastructure and has seen at least 500 jobs disappear over the past few years. Inadequate service from cable company Fidelity Communications, which suffered from frequent speed slowdowns and service interruptions, drove demands for an alternative.

Local officials have been extremely cautious about entering the broadband business, and have been reluctant to grow their network too quickly. The goal of the network these days is to provide robust and reliable high-speed internet access essential for the local digital economy and the jobs it creates. But city administrator Tim Stehn is also concerned about being a careful steward of the community’s finances.

“Of course, as a city administrator, I’m concerned, because if we would go completely to all businesses and residents, we’re looking at a high price tag that is estimated at $15 million,” Stehn told Christopher Mitchell in a 2017 interview for Community Broadband Bits. “What scares me the most is the customer service aspect of this. If we’re going to do this, I want to make sure the city is successful and that we can respond at serving the customer service. That’s the piece that really scares me the most.”

West Plains’ fiber network has grown carefully over the last few years, both in terms of its reach and its capabilities. At the outset, the network offered 25/25 Mbps dedicated connections primarily to business customers. But where West Plains’ fiber loop passes residential homes, the city has also been willing to provide service to local homeowners as well.

Last September, the city announced a three-month trial of the city’s 1 Gbps Gigabit Passive Optical Network (GPON). Up to 80 businesses and 14 homes in the Southern Hills district were invited to participate. West Plains’ GPON network offers participants a shared 1 Gbps connection. City officials were confident that even though the network is shared, there will be plenty of capacity available — much more than what DSL and cable broadband networks offer. The results of the pilot are designed to ascertain how much peak usage traffic the network will face and help local officials decide on what kinds of speed tiers to offer going forward.

The community’s progress since 2016 has not gone unnoticed. As Stop the Cap! has documented before, one of the best ways to force a stubborn incumbent phone or cable company to upgrade their network is to threaten to compete with it. Last September, Fidelity Communications suddenly announced it, too, was now offering gigabit internet service — at least for download speeds — within West Plains.

The residential service features 1 Gbps download speeds with 10 Mbps uploads, with a flat price of $79 per month, fees and Wi-Fi included, taxes may still apply. The higher speeds support multiple video streams, high-end online gaming, unlimited wireless devices and rapid transfer of huge data files, along with the capability to handle other bandwidth-hungry applications.

Over the past several months, Fidelity completed network upgrades, acquired 1 Gig-capable customer modems and freed up the bandwidth necessary to support the new 1 Gig speeds. These improvements will bring convenience and ease to those using the Internet in West Plains.

“As time goes on, technological demands keep increasing,” said Don Knight, Missouri general manager for Fidelity. “Fidelity intends to meet that demand by providing broadband speeds not normally available in rural areas.”

West Plains receiving gigabit service from two gigabit providers should be welcome news for local residents and businesses. But it apparently was not good news for Fidelity, which does not appreciate the competition.

Stop City Funded Internet has references to “Fidelity” — the area’s local cable company in certain file paths to images and other documents on its website.

StopCityFundedInternet.com was registered on Dec. 13, 2017 (and last updated Jan. 23, 2018, concealing the identity of the entity that registered the domain name behind an anonymous proxy service provided by Namecheap, a well-known domain name registrar.)

When the website went live, it claimed to be a “collection of fiscally conservative Missourians who believe that the role of government is to provide essential services that enhances the lives, safety and prosperity of local communities as opposed to leveraging taxpayer funds on high-risk endeavors that compete with services already provided by the private sector.”

This “independent” website coincidentally promotes the products and services of Fidelity Communications.

The website appeared to borrow heavily from a similar (failed) campaign to stop municipal broadband in Fort Collins, Col. The most common message of anti-municipal broadband campaigns is ‘taxpayer dollars will be wasted on failing broadband networks that take away from investments in schools, local infrastructure spending, and reducing crime.’ The Stop City Funded Internet campaign hit on all three of these messages, along with what it claims are examples of “failed” public broadband projects. The group’s website links to several “news articles” about municipal broadband that are actually opinion pieces typically written by industry-funded groups and individuals.

“West Plains is already a “Gig City,” with other private internet providers,” the website claims, without referring to Fidelity Communications directly. “In fact, residents already have access to a Gig connection for $80 per month. $80 per month is a price that is in line with many other cities around the country. The City of West Plains should focus its limited taxpayer funding on more pressing priorities, like fixing our roads and bridges, improving public safety and supporting our schools. And spending taxpayer dollars subsidizing a broadband utility would mean fewer resources for other services residents need and enjoy.”

The group invites those who oppose public broadband to register for e-mail updates, which will likely involve a $15 million bond and public referendum that would be needed to build out the city’s fiber to the home network to the entire community.

Isaac Protiva of West Plains found something unusual about the sudden appearance of the group and its website, which had no presence in the community before. For one, the group seemed to have an ample budget to spend on targeted Facebook ads for local residents. The ads promote the group’s website and Facebook page. That isn’t the case for Protiva’s own website: Internet Choice West Plains, which promotes the public broadband effort out of his own pocket.

Protiva also discovered certain elements on the group’s web page directly referenced “Fidelity:”

  • Header image: The main image from the homepage has a file name of “Fidelity_SCFI_Website_V2”
  • Privacy Policy: An image from the Privacy Policy page was hosted, or stored, on a website named “Fidelity.dmwebtest.com”

The website’s attempt to painstakingly avoid any connection to Fidelity Communications makes it a classic industry-sponsored astroturf operation. A private company secretly finances an “independent consumer group” that falls in line with the company’s public policy agenda. Many companies even brazenly reference such groups as evidence that their business views are in line with those of the public. In this case, the website developer accidentally outed the operation.

After Protiva began to publicize his efforts to document Fidelity’s funny business, the company initially responded by trying to hide the evidence. The website owners disabled the Internet Achive’s ability to snapshot the website’s history to scrub evidence of the accidental ties to Fidelity, Protiva claims. He also claims the group is heavily censoring its Facebook page.

Presented with strong evidence of the connection between Stop City Funded Internet and Fidelity Communications, the company finally came clean in a Facebook post:

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