Tom Maguire

Recently, Stop the Cap! published stories about Verizon’s decision to discontinue traditional wired landline service for approximately 500 customers on Fire Island and offer them a wireless alternative called Voice Link. This is an important change for Verizon and our customers, and we wanted to clarify several points about the service and how Verizon is deploying it.

In places like Fire Island, New York and some communities along the Jersey Shore, such as Mantoloking and Seaside Heights, Verizon evaluated the extent of the damage to its facilities – which in many cases were literally washed away by Super Storm Sandy – and conducted extensive research before deciding the best course of action to take in terms of restoration.

Fire Island is a popular beach community with only a few hundred year-round residents, but the population swells each summer. Verizon’s equipment on the eastern side of the island was not too heavily impacted, so repairs were made and services restored.

On the western side of the Island, however, a large percentage of Verizon’s copper facilities were damaged beyond repair.

We studied the voice traffic on and off the island and where it was originating from on both Verizon’s wireline and wireless networks.  The company discovered that 80 percent of the voice traffic was already wireless.  If other wireless providers were factored in, it is likely that the percentage is closer to 90 percent.  This made it clear that people had already made the decision as to what technology works best. They had abandoned copper long before Sandy.

Where Sandy did the most damage on Fire Island.

Another part of Verizon’s analysis looked at the number of permanent residents on Fire Island, which number about 500, and the costs that Verizon would incur to install and connect new landline facilities there.  It would range from $4.8 million to more than $6 million. A multimillion dollar investment with no guarantee that residents of the island will even subscribe to our services makes no economic sense. In fact, that’s probably why Verizon is the sole provider on the island. None of the companies we compete with in other parts of New York offer services on the island.

Verizon’s commitment is to provide our customers with voice service, and Voice Link is another way that Verizon is using technology to reliably deliver on that commitment for customers. And Voice Link does so by using wireless technology that has been proven effective over the last 20 plus years.

Verizon will maintain the copper network where it makes customer service and business sense to do so.  Please keep in mind that the vast majority of our copper customers have no issues at all with their service; we are only considering the universe of customers where the copper network is not supporting their requirements.  Again, the exception is the storm-impacted areas in the western portion of Fire Island and a few New Jersey Barrier communities where copper facilities were damaged beyond repair.  In these locations Voice Link will be the single voice option available to customers. Verizon will offer these customers the opportunity to use our state-of-the-art, tried and tested wireless network at the same rate (or better) that they pay today.

Here is how Verizon Voice Link works with existing home phones.

Some additional points for clarification:

• The service does offer a variety of popular calling features including Call Waiting and Caller ID with Name.  Some articles mistakenly reported to the contrary;
• Another article cited a Communications Daily piece that incorrectly reported 40,000 people participated in a blind test of Voice Link. Actually, that test group consisted of 20 people;
• Current Voice Link models include a rechargeable battery that offers 36 hours of standby and two hours of voice service. Future devices will work with standard AA batteries, giving customers an easy alternative for replacing batteries and maintaining communications in an extended power outage;
• Although the device is not presently data capable, the team is working to change that. Nevertheless we have always said that it was not Verizon’s original intent to use Voice Link for customers with DSL. If a customer had an issue with their copper and they had DSL, we would repair the copper.  Unfortunately Sandy changed these plans for a handful of customers on Fire Island and the New Jersey Barrier where the copper is beyond repair.

What’s the Deal With Copper?

In areas where Verizon’s fiber and copper network ran side-by-side, Verizon began to ask certain copper customers with a history of trouble to move their service to fiber. In some cases the equipment supporting the copper service was so outdated that we could not even find replacement parts because the equipment had been discontinued. The objective was to improve service quality and customer satisfaction using the best communications network, and the result was clear: the program has been very successful. More than 300,000 customers migrated to Verizon’s fiber-optic network.  These customers enjoy super-reliable, faster fiber at the same rates they were paying all along.

In non-fiber areas, Verizon developed Voice Link to take advantage of wireless technology to address voice customers served on the copper network who have had chronic repairs issues.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Verizon Voice Link Keeps Customers Connected After Hurricane Sandy 5-31-13.flv[/flv]

After Sandy hit, Verizon realized that wireless technology also would be an ideal solution for customers in areas the storm destroyed or severely damaged. It has helped us reconnect hundreds of people and businesses. Don’t take our word for it. See what these customers have to say. (3 minutes)

Tom Maguire is Verizon’s senior vice president of network operations support.

We saved the only good part.

The best part of Cablevision’s latest ridiculous advertising campaign is the 12-month introductory price new subscribers will pay for phone, broadband, and television service: $84.95 a month. Not bad. The same cannot be said to the advertising agency that created this mess and the executives who approved it.

Richard Greenfield from BTIG Research, which covers Cablevision for Wall Street, isn’t impressed with Cablevision’s ads either:

We believe it is time for Cablevision to find a new ad agency, bring in some new marketing executives internally and seriously rethink what their consumer proposition is – going back to pitching the triple-play at an ever lower (now $84.95 price point) is not particularly compelling. Cablevision already has very high level of bundling of video, data and voice services across its customer base.  Given that, Cablevision should be devising a marketing approach to upsell existing customers, especially higher speed, higher ARPU broadband services (given their high margin).

Consumers concerned about the high cost of cable may not agree with Greenfield’s assessment. Paying $85 a month for a triple play package is a great deal, at least until it expires.

But we suspect a lot of consumers will never get that far through the ad, particularly when most viewers don’t pay that much attention to advertising in the first place.

Insight is disappearing after Time Warner Cable bought the cable operator. It is in the process of converting subscribers to Time Warner’s own systems.

Some of more than 730,000 former Insight subscribers across Kentucky were without phone service after Time Warner Cable failed to successfully transfer them to a new platform.

Time Warner Cable had similar problems transitioning customers in Indiana, many unable to successfully navigate through a new online service agreement and e-mail address selection process.

Bob Mueller, a Florence-based financial planner, told Cincinnati.com it took nearly two days get his office line working again and his staff was still trying late Tuesday afternoon.

“We had massive problems with Insight before the changeover, and now we had problems with Time Warner,” Mueller told the newspaper. “This is not getting off to a very good start, but there aren’t a lot of other options. We’ve been at this for two days and no luck.”

Time Warner Cable denied there were any serious problems, but admitted call volumes were higher than usual. The company said it registered 40,000 new voice mail accounts throughout the state and migrated 200,000 phone customers since the weekend.

Internet customers will be moved to Time Warner Cable next week.

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WDRB in Louisville noted long hold times for new Time Warner Cable customers in excess of 30 minutes. (1 minute)

Canadian telecom regulators have announced new rules that will limit “gotcha” fees for mobile customers caught exceeding their data allowance, push for an end to the ubiquitous three-year service contract, and force carriers to unlock cell phones after 90 days.

The Canadian Radio-television and Telecommunications Commission (CRTC) this week unveiled a new consumer’s Wireless Code governing wireless service. The new rules were introduced in response to more than 5,000 consumer comments received by the regulator over service pricing, opaque wireless contract language, and policies that kept customers locked into long service contracts with expensive exit penalties.

On the surface, the new rules seem to aggressively rein in Bell, Rogers, and Telus — Canada’s three dominant carriers. Among the new provisions taking effect Dec. 2:

• cancel your contract at no cost after a maximum of two years;
• cancel your contract and return your phone at no cost, within 15 days and specific usage limits, if you are unhappy with your service;
• have your phone unlocked after 90 days, or immediately if you paid in full for your phone;
• have your service suspended at no cost if your phone is lost or stolen;
• receive a Critical Information Summary, which explains your contract in under two pages;
• receive a notification when you are roaming in a different country, telling you what the rates are for voice services, text messages, and data usage;
• limit your data overage charges to $50 a month and your data roaming charges to $100 a month;
• pay no extra charges for a service described as “unlimited”;
• you can refuse a change to the key terms and conditions of your contract, including the services in your contract, the price for those services, and the duration of your contract; and
• all cell contracts must use plain language and clearly describe the services customers receive and include information on when and why customers may be charged extra.

[flv width=”480″ height=”290″]http://www.phillipdampier.com/video/CBC New CRTC wireless rules ban contract break fees after 2 years 6-3-13.flv[/flv]

CBC Television’s “The National” explains the CRTC’s new Wireless Code and how it will impact Canadian cell phone customers. Many are skeptical the CRTC will outwit the wireless industry.  (4 minutes)

“Every day, Canadians rely on wireless devices while in their homes, at their jobs, at school or traveling abroad,” said Jean-Pierre Blais, chairman of the CRTC. “The wireless code will contribute to a more dynamic marketplace by making it possible for Canadians to discuss their needs with service providers at least every two years.  The code is a tool that will empower consumers and help them make informed choices about the service options that best meet their needs. To make the most of this tool, consumers also have a responsibility to educate themselves.”

Canadians pay among the world’s highest wireless charges and most are offered contracts lasting three years. In the United States, two-year contracts are standard. But in both countries, once the contract is fulfilled customers do not receive a discount on services going forward.

“The biggest scam of all is still allowed under the new rules: wireless companies don’t lower your bill if you buy your own phone or fulfill your contract, so you are still paying their subsidy-recovery phone rates either way,” complains Thomas Harcourt in Toronto. “Once again, the wireless companies got the ears of the commissioners and despite thousands of angry Canadians, they watered down our ‘Bill of Rights’ into more bait and switch. You can almost see where the wireless lobbyists had their way with the language.”

Most Canadian wireless carriers welcomed the new rules and the industry participated in hearings contemplating their creation. The new federal rules will supersede conflicting, sometimes stronger provincial regulations, which some observers suggest is a decision in the carriers’ favor.

A closer review of the new regulations exposes several that were tempered, perhaps after industry objections.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/BNN Wireless Code of Conduct CWTA 2-11-13.flv[/flv]

Back in February, BNN talked with Bernard Lord, a representative of the Canadian Wireless Telecommunications Association about what policies they hoped to see in a national wireless “code of conduct.” The industry got most of what it wanted in the final Wireless Code. (8 minutes)

The CRTC did not ban 3-year contracts outright. Instead, they tied contract termination policies and fees to the device subsidy phone companies give customers to cheapen the upfront cost of equipment.

Blais

In Canada, a new smartphone selling for $699 might be discounted to $99 with a three-year contract. For the next 36 months, customers gradually pay back that discount, called a device subsidy, in the form of an artificially inflated rate plan. Most companies amortize that payback rate over the life of the contract. Under the new CRTC rules, companies must recoup their device subsidy within 24 months.

“We didn’t focus on the length of the contract, we focused on the economic relation,” CRTC chairman Blais said. “So, in effect, it’s equivalent to those asking for a ban of a three-year contract without us actually banning three-year contracts, because what we’re saying is the contract’s amortization period can only be for a maximum period of 24 months.”

Carriers can still charge early termination fees during the first two years and can also recoup any remaining unpaid subsidy during the third year as the regulations begin to cover more customers already under three year contracts. Customers who bring or buy their own device can also be charged an early termination fee up to $50 during the first two years of the contract.

Since the rules will apply only to new cellular contracts signed after Dec. 2, 2013, current customers will have to wait before the new Wireless Code fully applies to them. That means wireless carriers can lock you to the old rules if you buy a new phone before December until your contract ends or is amended.

“I think a lot of consumers, if they were thinking of going to the mall and picking up a new phone and signing a contract, they should think twice about doing so,” Michael Geist, the Canada Research Chair in Internet and e-commerce law at the University of Ottawa, told CTV News.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/CBC 3-year contracts to end 6-3-13.flv[/flv]

The CBC tells you when you can rip up your three-year contract. But be careful. The new rules don’t take effect until December. Many complain cell phone service is far too expensive in Canada. (4 minutes)

Wireless carriers claim consumers may eventually pay the price for the rules changes, with some hinting they will increase the upfront price for devices or raise rates to cover the shortened window of time they can recoup a device subsidy.

“This requirement does limit consumer choice in the marketplace, and could make a customer’s up-front purchase price of a smartphone more expensive than current offerings,” said Bernard Lord, head of the Canadian Wireless Telecommunications Association (CWTA).

The CWTA also hinted rates may also increase to cover the “major technology development and costs associated with implementing and complying with the new code.”

Ken Engelhart, senior vice president for regulatory affairs at Rogers told BNN a new smartphone under the old three-year contract was typically priced at around $100. Under a two-year contract, that smartphone might cost $300 upfront.

The CRTC’s language banning overage charges for “unlimited” service does not offer consumers any relief from speed throttling. The CRTC says speed limits are acceptable as long as they are “clearly explained” in what the regulator calls a “fair use” policy.

Language that covers contract changes also leaves some wiggle room for carriers to make changes and in certain cases, even increase customer rates while the contract is in effect. The new rules specify customers must make “informed and express consent” to approve a contract change. But the rules might allow a carrier to consider those changes as accepted if a customer does not expressly complain and/or continues to use the phone after a specified deadline. Carriers can also make changes without consumer consent if they involve reducing the rate for a single service or increasing the customer’s usage allowance for a single service.

The limit of data overage charges ($50) and international data roaming charges ($100) are welcomed by most Canadians to avoid bill shock. But most wireless carriers will likely impose usage “toll booths” to avoid uncollectable customer overages. When a customer reaches their limit, they will be given a choice of having their service cut off, opting to cover the overlimit fees, or upgrade their plan.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/BNN Wireless Code of Conduct PIAC 2-11-13.flv[/flv]

BNN talked with John Lawford, executive director of the Public Interest Advocacy Centre about the things Canadians hate most about their wireless phone companies.  (February 11, 2013) (4 minutes)

Back in the fall of 2010, British billionaire Alki David fired a salvo against major broadcast networks in the United States and United Kingdom with the introduction of FilmOn, an online cable system offering unlimited viewing of broadcast networks from both countries for around $10 a month. By early 2011, lawsuits from various networks forced the removal of the most-watched channels, and most of the incentive for subscribers to keep paying for the service.

But David has never given up on FilmOn, and borrowing a page from Aereo’s business plan, he has brought back most of the major American networks on his relaunched platform, dubbed AereoKiller.

The company claims it is now using individual over-the-air antennas to receive broadcast stations from the New York or Washington, D.C. area, selling 24/7 streaming access for $9.99 per month or $99 a year. DVR service is sold at prices ranging from $2.95 a month to $190 a year, depending on the number of hours recorded.

Among the stations included:

New York

• WCBS (CBS)
• WNBC (NBC)
• WNYW (FOX)
• WABC (ABC)
• Bounce TV (via WWOR subchannel)
• WPIX (CW)
• WNET (PBS)/WNET-Kids
• WNJU (Telemundo)

Washington, D.C.

• WRC (NBC)
• WTTG (FOX)
• WJLA (ABC)
• WUSA (CBS)

There seem to be no geographic restrictions to prevent out of area viewers from subscribing, and FilmOn offers viewing on the desktop, as well as through iOS and Android apps.

David

FilmOn may have avoided streaming west coast stations because a California court found in favor of broadcasters who sued to shut down the operation three years earlier. But it ultimately will not keep David’s upstart service out of the courts in the east.

Last week, three major television networks and Washington, D.C. station owner Allbritton Communications filed suit against FilmOn for streaming signals from the nation’s capital without permission.

Based on the track record of earlier ventures, customers may want to avoid subscribing at the annual package price. Historically, broadcasters have fought and won temporary restraining orders that block the streaming services until the case makes its way through legal proceedings. Aereo, which streams New York area television stations exclusively to New York City customers has proven the exception and continues to run, at least for now.

Broadcasters consider stopping “dime-sized” antenna farm streaming services like Aereo and AereoKiller a top priority, because networks and local stations earn lucrative retransmission consent rights fees from cable, satellite, and telco-TV providers used by at least 90 percent of the viewing audience. Should these alternative technologies be found legal and not in violation of copyright, pay television providers could potentially license and incorporate similar technology into their respective set-top boxes and avoid paying license fees to station and network owners.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/FilmOn Introduction 5-13.mp4[/flv]

FilmOn’s introductory promotional video features some boastful claims from founder Alki David that are perhaps more wishful thinking than reality, but PlayOn has persisted despite broadcaster lawsuits by creating and distributing original live and recorded programming.  (8 minutes)