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Hurricane Sandy’s Wrath on Telecommunications Extends Beyond the Hardest Hit Areas

Phillip Dampier October 30, 2012 AT&T, Cablevision (see Altice USA), Comcast/Xfinity, Consumer News, MetroPCS, Sprint, T-Mobile, Verizon, Wireless Broadband 3 Comments

Hurricane Sandy’s destructive forces of wind and water, combined with extensive electrical outages has wreaked havoc with telecommunications services from Maine to Virginia, leaving some customers potentially without service for weeks.

The storm has flooded Verizon‘s central switching offices in New York City, did extensive damage to Sprint’s wireless network and infrastructure, has left large sections of upstate and downstate New York without cable service, and clocks ticking for wireless cell customers using cell sites currently running on battery backup power.

Some of the worst problems are affecting Verizon’s landline and FiOS networks after the company lost two critical switching centers in Manhattan to extensive flooding. That has contributed to significant problems for Verizon customers across Manhattan, Queens, and Long Island. Further afield, Verizon customers without service can blame power outages and fallen trees that took out overhead wiring. Together, Verizon customers are experiencing significant problems with landline, broadband, and FiOS TV and Internet services in some areas.

Many Verizon Wireless cell sites are operating on battery backup units which maintain service for only a limited time. New York, New Jersey and Connecticut customers report increasing difficulty maintaining cell service signals as those battery backup units start to fail. Verizon engineering crews can restore undamaged cell sites with backup generators once permitted into storm-ravaged areas.

One of the hardest hit wireless carriers

Cablevision‘s business largely depends on areas that took a direct hit from Hurricane Sandy. Cablevision repair crews are encountering extensive power outages and damaged overhead wiring brought down during the storm in Connecticut and Long Island. Its service area closer to New York City has been primarily affected by power outages. Comcast said it was still starting an assessment process and was not prepared to report on the current state of its network, which operates in cities north and south of the New York City metro area.

While Time Warner Cable spokesman Alex Dudley reports little damage to Time Warner Cable’s systems, many remain offline from power interruptions, and Time Warner’s Twitter feed for upstate New York reports isolated outages in Portland, Maine and across upstate New York, primarily due to power losses or damage to infrastructure.

Sprint appears to be the hardest hit wireless carrier with widespread service outages, interruptions and call completion issues throughout the states of New York, New Jersey, Connecticut, Pennsylvania, Washington DC, Maryland, North Virginia and New England. Some customers far away from the worst-hit areas report trouble making and receiving calls on Sprint’s network. Many cell sites are also damaged.

AT&T is assessing damage to its landline operations in Connecticut, where it is the dominant phone company. Many AT&T cell phone sites, like Verizon, are operating on battery backup in power outage areas until AT&T can bring generators online to maintain service.

T-Mobile and MetroPCS report damage and service outages to their cellular networks as well, mostly from power outages.

Lyndhurst, NJ

Even old style communications networks were not spared from Hurricane Sandy. The Northeast Radio Watch reports a large number of broadcasters across the region off the air as of this morning:

  • Outside of WOR (710), most New York City area AM stations are off the air. WOR survived the storm with its recently built three tower site located just above the flood waters. Chief engineer Tom Ray told NERW the water is 10 feet deep at WOR’s transmitter site in the Meadowlands. Many AM stations in New York favor transmitter locations in now-ravaged Lyndhurst and the Meadowlands. The result: indefinite absence of all-news WINS (1010) (it’s now back up — thanks to an update from Scott Fybush), which is now being heard on WXRK (92.3). Also missing: WLIB (1190), WSNR (620), WMCA (570), WNYC (820), WPAT (930), WNYM (970), WADO (1280) and WWRV (1330). FM outlets favor much higher transmitter locations, usually atop large skyscrapers, that escaped flood damage.
  • WABC continues to air the audio portion of its broadcast on WEPN-AM (1050) and FM (98.7) for the benefit of those without power. WCBS studios are currently powered “by candlelight.”
  • The Jersey shore’s FM outlets are mostly silent. Atlantic City was among the hardest hit, and some stations may be off the air for some time while rebuilding.
  • Connecticut stations are also off the air. Powerhouse WICC (600) in Bridgeport has transmitters on Long Island Sound — a poor choice to withstand Sandy. It is likely underwater. Also gone: WGCH (1490 Greenwich), WAXB (850 Ridgefield) and WSHU (1260 Westport) and WALK-FM (97.5 Patchogue).

Repair crews for all concerned will likely only start assessing damage later today, but many will have to wait for power crews to complete work — they have first priority. Those lucky enough to see service restoration once power returns will be in far better shape than others who could wait weeks to get their Internet, television and phone service back.

Correction: Original story included reference to studio power knocked out at WOR-TV. That should have said WOR-AM (radio). 

Halloween Scare Stories: Controlling the “Spectrum Shortage” Data Tsunami With Rate Hikes, Caps

Phillip Dampier October 25, 2012 Astroturf, AT&T, Broadband "Shortage", Competition, Consumer News, Data Caps, Editorial & Site News, Public Policy & Gov't, Sprint, T-Mobile, Verizon, Video, Wireless Broadband Comments Off on Halloween Scare Stories: Controlling the “Spectrum Shortage” Data Tsunami With Rate Hikes, Caps

Phillip “Halloween isn’t until next week” Dampier

Despite endless panic about spectrum shortages and data tsunamis, even more evidence arrived this week illustrating the wireless industry and their dollar-a-holler friends have pushed the panic button prematurely.

The usual suspects are at work here:

  • The CTIA – The Wireless Association is the chief lobbying group of the wireless industry, primarily representing the voices of Verizon, AT&T, Sprint, and T-Mobile. They publish regular “weather reports” predicting calamity and gnashing of teeth if Washington does not immediately cave to demands to open up new spectrum, despite the fact carriers still have not utilized all of their existing inventory;
  • Cisco – Their bread is buttered when they convince everyone that constant equipment and technology upgrades (coincidentally sold by them) are necessary. Is your enterprise ready to confront the data tsunami? Call our sales office;
  • The dollar-a-holler gang – D.C. based lobbying firms and their astroturf friends sing the tune AT&T and Verizon pay to hear. No cell company wants to stand alone in a public policy debate important to their bottom line, so they hire cheerleaders that masquerade as “research firms,” “independent academia,” “think tanks,” or “institutes.” Sometimes they even enlist non-profit and minority groups to perpetuate the myth that doing exactly what companies want will help advance the cause of the disenfranchised (who probably cannot afford the bills these companies mail to their customers).

Tim Farrar of Telecom, Media, and Finance Associates discovered something interesting about wireless data traffic in 2012. Despite blaring headlines from the wireless industry that “Consumer Data Traffic Increased 104 Percent” this year, statistics reveal a dramatic slowdown in wireless data traffic, primarily because wireless carriers are raising prices and capping usage.

The CTIA press release only quotes total wireless data traffic within the US during the previous 12 months up to June 2012 for a total of 1.16 trillion megabytes, but doesn’t give statistics for data traffic in each individual six-month period. That information, however, can be calculated from previous press releases (which show total traffic in the first six months of 2012 was 635 billion MB, compared to 525 billion MB in the final six months of 2011).

Counter to the CTIA’s spin, this represents growth of just 21 percent, a dramatic slowdown from the 54 percent growth in total traffic seen between the first and second half of 2011. Even more remarkably, on a per device basis (based on the CTIA’s total number of smartphones, tablets, laptops and modems, of which 131 million were in use at the end of June), the first half of 2012 saw an increase of merely 3 percent in average wireless data traffic per cellphone-network connected device, compared to 29 percent growth between the first and second half of 2011 (and 20-plus percent in prior periods).

[…] What was the cause of this dramatic slowdown in traffic growth? We can’t yet say with complete confidence, but it’s not an extravagant leap of logic to connect it with the widely announced adoption of data caps by the major wireless providers in the spring of 2012. It’s understandable that consumers would become skittish about data consumption and seek out free WiFi alternatives whenever possible.

Farrar

Cisco helps feed the flames with growth forecasts that at first glance seem stunning, until one realizes that growth and technological innovation go hand in hand when solving capacity crunches.

The CTIA’s alarmist rhetoric about America being swamped by data demand is backed by wireless carriers, at least when they are not talking to their investors. Both AT&T and Verizon claim their immediate needs for wireless spectrum have been satisfied in the near-term and Verizon Wireless even intends to sell excess spectrum it has warehoused. Both companies suggest capital expenses and infrastructure upgrades are gradually declining as they finish building out their high capacity 4G LTE networks. They have even embarked on initiatives to grow wireless usage. Streamed video, machine-to-machine communications, and new pricing plans that encourage customers to increase consumption run contrary to the alarmist rhetoric that data rationing with usage caps and usage pricing is the consequence of insufficient capacity, bound to get worse if we don’t solve the “spectrum crisis” now.

So where is the fire?

AT&T’s conference call with investors this week certainly isn’t warning the spectrum-sky is falling. In fact, company executives are currently pondering ways to increase data usage on their networks to support the higher revenue numbers demanded by Wall Street.

If you ask carriers’ investor relations departments in New York, they cannot even smell smoke. But company lobbyists are screaming fire inside the D.C. beltway. A politically responsive Federal Communications Commission has certainly bought in. FCC chairman Julius Genachowski has rung the alarm bell repeatedly, notes Farrar:

Even such luminaries as FCC Chairman Julius Genachowski has stated in recent speeches that we are at a crisis point, claiming “U.S. mobile data traffic grew almost 300 percent last year” —while CTIA says it was less than half that, at 123 percent. “There were many skeptics [back in 2009] about whether we faced a spectrum crunch. Today virtually every expert confirms it.”

A smarter way of designing high capacity wireless networks to handle increased demand.

So how are consumers responding to the so-called spectrum crisis?

Evidence suggests they are offloading an increasing amount of their smartphone and tablet traffic to free Wi-Fi networks to avoid eroding their monthly data allowance. In fact, Farrar notes Wi-Fi traffic leads the pack in wireless data growth. Consumers will choose the lower cost or free option if given a choice.

So how did we get here?

When first conceived, wireless carriers built long range, low density cellular networks. Today’s typical unsightly cell tower covers a significant geographic area that can reach customers numbering well into the thousands (or many more in dense cities). If everyone decides to use their smartphone at the same time, congestion results without a larger amount of spectrum to support a bigger wireless data “pipe.” But some network engineers recognize that additional spectrum allocated to that type of network only delays the inevitable next wave of potential congestion.

Wi-Fi hints at the smarter solution — building short range, high density networks that can deliver a robust wireless broadband experience to a much smaller number of potential users. Your wireless phone company may even offer you this solution today in the form of a femtocell which offloads your personal wireless usage to your home or business Wi-Fi network.

Some wireless carriers are adopting much smaller “cell sites” which are installed on light poles or in nearby tall buildings, designed to only serve the immediate neighborhood. The costs to run these smaller cell sites are dramatically less than a full-fledged traditional cell tower complex, and these antennas do not create as much visual pollution.

To be fair, wireless growth will eventually tap out the currently allocated airwaves designated for wireless data traffic. But more spectrum is on the way even without alarmist rhetoric that demands a faster solution more than  a smart one that helps bolster spectrum -and- competition.

Running a disinformation campaign and hiring lobbyists remains cheaper than modifying today’s traditional cellular network design, at least until spectrum limits or government policy force the industry’s hand towards innovation. Turning over additional frequencies to the highest bidder that currently warehouses unused spectrum is not the way out of this. Allocating spectrum to guarantee those who need it most get it first is a better choice, especially when those allocations help promote a more competitive wireless marketplace for consumers.

[flv width=”600″ height=”358″]http://www.phillipdampier.com/video/KGO San Francisco FCC considers spectrum shortage 9-12-12.flv[/flv]

KGO in San Francisco breaks down the spectrum shortage issue in a way ordinary consumers can understand. FCC chairman Julius Genachowski and even Google’s Eric Schmidt are near panic. But the best way to navigate growing data demand isn’t just about handing over more frequencies for the exclusive use of Verizon, AT&T and others. Sharing spectrum among multiple users may offer a solution that could open up more spectrum for everyone.  (2 minutes)

Pot to Kettle: AT&T Sounds Alarm That Sprint-Softbank Deal Threatens Competitive Wireless

Phillip Dampier October 18, 2012 AT&T, Broadband "Shortage", Competition, Public Policy & Gov't, Sprint, Wireless Broadband 1 Comment

AT&T says this deal was no problem, but ponders whether Sprint-Clearwire is.

AT&T, the company that tried and failed to buy Deutsche Telekom’s T-Mobile USA, is sounding the alarm, urging regulators to carefully review any deal between Sprint, Softbank, and Clearwire.

“Softbank’s acquisition of Sprint and the control it gains over Clearwire will give one of Japan’s largest wireless companies control of significantly more U.S. wireless spectrum than any other company,” Brad Burns, an AT&T vice president said in a statement released late Wednesday. “We expect that fact and others will be fully explored in the regulatory review process. This is one more example of a very dynamic and competitive U.S. wireless marketplace, which is an important fact for U.S. regulators to recognize.”

AT&T claims its primary concern is the growing foreign control of America’s wireless carriers. That did not seem to bother AT&T from doing business with Germany-based Deutsche Telekom. Verizon Wireless has not been the recipient of any AT&T complaints either, and it is jointly owned by Verizon Communications and London-based Vodafone Group Plc.

Sprint bankrolled an opposition campaign against AT&T’s 2011 attempt to buy T-Mobile in a $39 billion dollar deal that failed after regulators objected to its impact on marketplace competition.

AT&T’s concerns about spectrum control may be an attempt to lobby the FCC for more leniency in approving future spectrum acquisitions. But industry analysts note that while a combined Sprint-Clearwire network may control more spectrum than others, much of it occupies less-favorable, very high frequencies that have trouble delivering robust service indoors. AT&T maintains a considerable amount of prime spectrum most sought by carriers, some of it yet to be used.

Emboldened Sprint Seeks Controlling Interest in Clearwire; Will Pay $100 Million for Co-Founder’s Stake

Phillip Dampier October 18, 2012 Competition, Consumer News, Sprint, Video, Wireless Broadband Comments Off on Emboldened Sprint Seeks Controlling Interest in Clearwire; Will Pay $100 Million for Co-Founder’s Stake

Sprint will have majority ownership in Clearwire, including its lucrative wireless spectrum.

Sprint-Nextel will gain majority control over its beleaguered wireless partner Clearwire with the $100 million acquisition of Craig McCaw’s stake in the wireless company he co-founded.

Sprint already controlled 48 percent of Clearwire, which provides many Sprint customers with 4G WiMAX service, but today’s purchase will give Sprint more control over Clearwire’s considerable wireless spectrum holdings.

Jeff Kagan, an independent telecommunications analyst this morning told Bloomberg News Sprint’s acquisition will make a Sprint-Clearwire combination more attractive to Softbank, which is buying a controlling interest in Sprint and wants firm ground in the U.S. market.

“It gives the combined company much more spectrum, much more ability to deliver services,” Kagan said.

But Sprint denied it was seeking a complete acquisition of Clearwire, which still has Intel and cable operator Comcast as part-owners.

Clearwire’s planned 4G TD-LTE network upgrade due to launch in 2013 is also a comfortable fit for Sprint’s new partner — Tokyo-based Softbank, which uses the same technology on its own 4G network in Japan. Softbank last week announced it would pay $20.1 billion for a controlling interest in Sprint-Nextel.

[flv]http://www.phillipdampier.com/video/CNBC Faber Report Sprint Gains Control of Clearwire 10-18-12.flv[/flv]

CNBC covers Sprint’s announced acquisition of a controlling interest in beleaguered Clearwire, and what impact the acquisition will likely have on Sprint shareholders. (3 minutes)

Privacy Alert: Verizon Wireless is Selling Your Browsing Habits and Online Behavior to Advertisers

Phillip Dampier October 15, 2012 AT&T, Consumer News, Editorial & Site News, Public Policy & Gov't, Sprint, T-Mobile, Verizon, Wireless Broadband 1 Comment

Verizon Wireless is proud of its new “business intelligence” initiative that will collect your browsing habits and online behavior, aggregate it with other customers similar to you, and then package and sell it to anyone willing to pay.

For your convenience, Verizon has automatically opted you in to their Precision initiative, and it is up to you to make the effort to opt out.

“Companies are always seeking opportunities to understand and act on their customers’ preferences, and Verizon is in a unique position to offer information and insight in a format that can help,” said Colson Hillier, vice president, Precision Market Insights, Verizon Wireless.  “At the same time, protecting customer data and safeguarding privacy have always been high priorities at Verizon, and we give our customers choice and control over their privacy preferences.”

The first set of services from Precision will help brands and companies such as outdoor media companies, sport venues, and other marketers, to understand the characteristics of the audiences for their products and services so that they can better reach and serve those customers.  Business and marketing insights use information from Verizon’s mobile network that is gathered and combined with demographic data, then aggregated to provide real insights into consumer behavior.  Data associated with the preparation of business and marketing reports is anonymous and secure and will not allow the identification of an individual.

Precision plans to introduce additional services including one that will help brands tailor the type of advertising customers see on their mobile phones, also known as relevant mobile advertising, and others that will help marketers create opportunities to better address their consumers and their consumers’ needs.

Still, Verizon’s lucrative new program delivers all of the benefits to themselves, while sticking you with an ever-increasing mobile phone bill. If Verizon Wireless wants to collect your browsing data and other “aggregated” information to sell to advertisers, then the company ought to be paying customers to participate. As usual, they keep all of the money for themselves.

Verizon Wireless obfuscates this privacy invasion with technobabble. They call it: Customer Proprietary Network Information (CPNI), ironic for a program that sells “precision” information to Verizon’s clients. In fact, Verizon tracks your location, collects ongoing statistics that can be used to predict where you will be at any given time, and offers that information up to mobile advertisers. They in turn deliver you “relevant advertising,” that eats your limited data allowance. It represents a win-win for the company and advertisers. Sell your data and then collect even more revenue as advertisers pelt you with unwanted ads.

But customers do not have to be the losers. You can deny Verizon their latest Money Party until they share some of the proceeds with you:

  1. Login to your account at Verizon Wireless.
  2. Scroll to “I want to…” and find “profile.”
  3. Choose “Manage privacy settings.”
  4. Note the section: “Customer Proprietary Network Information”.
  5. Choose “Don’t Share My CPNI” for each relevant cellular number.
  6. Make sure to click the “Save Changes” button when finished or your choices will not be saved.

You may want to also block Verizon from cashing in on your data for their Business and Marketing Reports and Relevant Mobile Advertising. Those settings appear just below the CPNI section. Make sure you “Save Changes” for each section.

Not a Verizon Wireless customer? Look out. Your carrier may be packaging and reselling your browsing habits as well.

  • Sprint: Collects and markets subscriber data. Login to your Sprint account and select “My Choices” to opt out or call 1-855-596-2397 from each of your mobile devices.
  • AT&T: Collects and markets subscriber data. Visit AT&T’s privacy options after logging into your account and opt out as needed.
  • T-Mobile: Legalese overload. Would the average customer understand this: “We may obtain your consent in several ways, such as in writing; online, through ‘click-through’ agreements; orally, including through interactive voice response; or when your consent is part of this policy or the terms and conditions pursuant to which we provide you service. Your consent is sometimes implicit.”

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