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House GOP Tries to Ban FCC’s Net Neutrality Enforcement; Rider Would Prohibit Oversight of Data Caps

sneakHouse Republicans are hoping a back door legislative maneuver will successfully block the Federal Communications Commission from enforcing Net Neutrality and regulating or banning data caps.

The GOP is fighting to deliver a death-blow against Net Neutrality in a rider attached to an important financial services appropriations bill. If adopted, this single sentence would effectively kill Net Neutrality enforcement and allow providers to adopt data caps and usage-based billing without any regulatory oversight from the FCC:

None of the funds made available by this Act may be used to regulate, directly or indirectly, the prices, other fees, or data caps and allowances (as such terms are described in paragraph 164 of the Report and Order on Remand, Declaratory Ruling, and Order in the matter of protecting and promoting the open Internet, adopted by the Federal Communications Commission on February 26, 2015.

The rider, in effect, makes it illegal for the FCC to protect customers upset about usage-capped Internet. It would also prevent the FCC from intervening if a provider wrongly charged overlimit fees to customers.

The spending measure is being fast-tracked through Congress and is considered a “must-pass” bill, with or without any attached riders. If legislators do not pass the omnibus measure by Dec. 11, it could result in another government shutdown.

The tactic is part of a broader move by several House Republicans to curtail the FCC’s oversight authority by threatening to dramatically cut the agency’s budget.

The anti-Net Neutrality rider has not gotten a lot of attention over the Thanksgiving holiday and was overshadowed by two other priorities of House Republicans that are getting more press attention: making it more difficult for Syrian and Iraqi refugees to resettle in the United States and a measure to strip federal funding for routine medical services performed by Planned Parenthood.

Rep. Barbara Lee (D-Calif.), a member of the House Appropriations Committee, released a statement condemning the Republicans for their “extreme agenda,” using procedural tricks to override the FCC and steamroll over nearly four million Americans that wrote the agency demanding Net Neutrality.

The Republican rider would effectively give a green light to Comcast to move forward with nationwide data caps, no longer fearing a potential FCC investigation that could eventually lead to a prohibition of compulsory usage-based billing.

Stop the Cap! urges all of our readers to visit this Free Press campaign page to get the phone number of their local representative and take five minutes to let them know you “vehemently oppose Net Neutrality riders being placed in a must-pass government-funding bill.” Tell your congressman you want the FCC’s authority left intact and you support their oversight of broadband. That is literally all you need to say.

Are Cheap Chinese Christmas Lights Killing Your Wi-Fi?

Despite the UL label, these Walmart-sold Christmas lights have been recalled in Canada for causing "unfortunate incidents." In the U.S. consumers are on their own.

Despite the UL label on the cord, these Walmart-sold Christmas lights have been recalled in Canada for causing “unfortunate incidents.” In the U.S. they are still on the market and consumers are on their own.

The increasing prevalence of energy-saving LED holiday lights may help reduce your energy bill this Christmas, but are probably not doing any favors to your in-home Wi-Fi.

Chinese factories that produce billions of light string sets annually often have the attitude that quality control should take a back seat to selling price, and as such many of these cheaply produced sets experience a growing number of issues the longer they are in use. This year, Canadian regulators have ordered complete recalls of holiday lights manufactured by Taizhou Hongpeng Colour Lanterns or Ningbo EGO International Co. Ltd. The sets were implicated for interference, overheating, fire, shock, toxicity, and more.

The affected lights, sold until the fall of 2015, were available across North America in dollar stores, hardware warehouses, supermarkets, and department stores. Many were sold by Loblaws, Michaels (the CELEBRATE IT series) and Walmart’s “Holiday Time” brand lights. Up north, it’s time for those lights to go after sampling and evaluation by the federal agency led to clear evidence they posed serious safety risks.

In the United States, consumers are on their own. Despite adopting new safety regulations in June, the Consumer Product Safety Commission remains satisfied with a hands-off/business-friendly approach that relies primarily on voluntary recalls that begin after consumers self-report injuries from defective products.

The CPSC does not test Christmas light sets, despite the fact seasonal and decorative lighting products have been responsible for hundreds of fire and shock-related deaths and injuries over the years. CPSC is aware of 132 fatal incidents that occurred from 1980 through 2014 which led to 258 deaths, and 1,405 nonfatal incidents associated with seasonal and decorative lighting products.

Despite clear warnings from Health Canada’s own testing, the CPSC continues to allow manufacturers to sell dangerous light sets that are now recalled in Canada.

Assuming your Christmas tree lights don’t overheat or short out, regulators are also turning their attention to a less serious problem with the light sets: their potential to create interference problems.

Wi-Fi trouble waiting to happen.

Wi-Fi trouble waiting to happen.

Ofcom, the United Kingdom’s independent telecom regulator, has seen enough reports of Wi-Fi problems tracked back to Christmas lights to issue a caution.

The problem isn’t so much with the LED bulbs. The interference problems usually develop from the cheap transformers/switched mode power supplies used to regulate voltage for certain energy-saving lights. A poor quality unshielded light set, especially those with a built-in, programmed light show, is likely to throw audible hash across the AM radio dial. But it can also interfere with Wi-Fi reception in certain cases, especially if you turn your home and yard into the equivalent of the Vegas strip.

Despite the timely holiday themed Ofcom announcement, most of the lights sold in the United States have offered negligible interference so far — typically when the wireless router is located very near a Christmas tree or a powered holiday decoration. The biggest culprit that obliterates Wi-Fi is still the microwave oven. When running, many models can wipe out reception across a home or apartment.

Other factors that can make a difference include the distance between you and your router and whether the neighbors are sharing the same Wi-Fi channel you use.

Ofcom’s advice:

Move your router away from electrical devices: Halogen lamps, electrical dimmer switches, stereo or computer speakers, Christmas lights, TVs and monitors and AC power cords have all been known to cause interference to broadband routers. It’s important to use quality key materials in modern electronics. Keep your router as far away as possible from other electrical devices as well as those which emit wireless signals such as baby monitors etc.

Move your router to a different part of your home: The walls and furniture in your house act as an obstacle to the Wi-Fi radio frequencies. Ideally routers should be kept centrally within the home and placed on a table or shelf rather than on the floor.

Try restarting your wireless router: This may automatically select a less busy Wi-Fi radio frequency.

Our advice is to consider replacing or upgrading a misbehaving router that will not hold a Wi-Fi connection even in the best of circumstances and above all, make sure you have enabled wireless security to keep uninvited guests off your network.

HissyFitWatch: Cable Operator Shames Past Due Customers by Naming Them on Facebook

Phillip Dampier December 2, 2015 Canada, Consumer News, HissyFitWatch, Public Policy & Gov't 4 Comments

past dueA cable operator in Canada’s Northwest Territories doesn’t bother sending past due notices to customers in arrears anymore. It posts their names and amounts owed on Facebook instead.

Senga Services Cable TV is facing heat for posting its past due list publicly on several Facebook community pages, including the ‘Fort Simpson Town Cryer‘, naming and shaming customers including former Member of the Legislative Assembly (MLA) Kevin Menicoche (who quickly called to make payment arrangements).

Jennifer Simons, who works with Senga Services, told CBC News she’s fed up with sad stories about why people won’t pay their cable bill.

“We always got excuses from everybody,” Simons said. “Promissory notes and everything, and it never arrives. So we found the most effective way is to publicly post the names.”

Customer reaction varied from supportive to swift and harsh condemnation. With the story going viral, Senga has restricted access to its own Facebook page.

“What a shotty [sic] disrespectful way to try and get people to pay,” wrote one reader.

fort-simpson-town-crierMost of the amounts owed are between $100-300, but one customer had managed to avoid paying an apparent court judgment of $1,406.80.

Michelle Léger, a Fort Simpson resident told the CBC the post “just wasn’t right.” With a population of just 1,200 in Fort Simpson, the list was sure to generate a lot of buzz in the community.

“If I had been a person on that list, I would have been really embarrassed,” she said. “It’s publicly shaming people. That’s kind of abusive to your customer base. Everybody knows who owes money to a cable company. So we know who is irresponsible with money or who might be struggling. If I were struggling to pay bills, I wouldn’t want my community knowing.”

Simons had none of that, doubling down in a follow-up message that people “should not live outside their means,” adding “maybe their family can step up and help them out.”

“We run a business, not a charity,” Simons explained. “We have bills to pay and paying customers who deserve to have services. Not paying your bill is stealing.”

MLA Menicoche told the CBC he was not embarrassed after appearing on the list, but complained he should have been contacted privately first.

Whether customers agree or disagree, the public disclosure does not appear to violate Canadian law.

According to Canada’s Personal Information Protection and Electronic Documents Act, organizations may disclose personal information of an individual without their consent if “the disclosure of the information is necessary in order to collect a debt owed to the organization.”

Regulators Want to Know Why Vidéotron Has Room for Unlimited Data for Some Apps, Not Others

Phillip Dampier December 1, 2015 Broadband "Shortage", Canada, Competition, Consumer News, Data Caps, Net Neutrality, Public Policy & Gov't, Vidéotron, Wireless Broadband Comments Off on Regulators Want to Know Why Vidéotron Has Room for Unlimited Data for Some Apps, Not Others

videotron mobileThe Canadian Radio-television and Telecommunications Commission is asking some hard questions of Quebec-based mobile provider Vidéotron, which began zero-rating preferred partner music streaming services last summer that allow customers to stream all the music they want without it counting against their data cap.

The CRTC is examining whether the practice violates Canada’s Net Neutrality policies, which insist all content be treated equally.

“If, as Vidéotron has stated, congestion is manageable and there is no meaningful risk of service degradation as a result of offering Unlimited Music service, explain why Vidéotron did not either increase or eliminate data usage caps for your broader customer base instead of zero-rating certain applications or services,” the CRTC has asked.

Unlimited Music allows customers to stream Spotify, Google Play Music, Deezer and Canadian-owned Stingray Music without it counting against a customer’s allowance. Other streaming services do count, potentially putting them at a competitive disadvantage.

videotron_coul_anglais_webObservers say zero-rating enhances a customer’s perception that data has a measurable financial value, often arbitrarily assigned by competitors in a marketplace. If providers charge an average of $10 per gigabyte, customers will gradually accept that as the base value for wireless data, despite the fact many providers used to sell unlimited data plans for around $30. Zero rating content can be used in marketing campaigns to suggest customers are getting added value when a provider turns off the usage meter while using those services. Stream 3GB of music and a provider can claim that has a value of $30, but provided to you at “no charge.”

In the United States, most providers generally offer “bonus data” allowances in promotions instead of focusing on individual services. But T-Mobile goes a step further, also offering Music Freedom, a zero-rated music streaming service of its own.

Consumer reaction to the services are mixed. If a customer is a current subscriber to the preferred content, they often perceive a benefit from the free streaming. But customers looking to use a service not on the list may consider such plans unfair.

The CRTC will be awaiting Vidéotron’s formal answer.

The Stage Is Set to Kill Telco ADSL: Cable Operators Prepare for DOCSIS 3.1 Competitive Assault

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Next year’s upgrade to DOCSIS 3.1 will support cable broadband speeds up to one gigabit shortly after introduction.

Telephone companies relying on traditional ADSL service to power their broadband offering will likely face a renewed competitive assault in 2016 that will further reduce their already-challenged market share in areas where cable companies compete.

Cable operators are hungry for profitable broadband customers and the best place to find new prospects is at the phone company, where DSL is still a common technology to deliver Internet access. But while cable Internet speeds have risen, significant DSL speed hikes have proven more modest in the residential market.

In 2016, the cable industry intends to poach some of the remaining price-sensitive holdouts still clinging to DSL with revised broadband offers promising more speed for the dollar.

Cable broadband has already proven itself a runaway success when matched against telephone company DSL service. Over the last year, Strategy Analytics found Comcast and Time Warner Cable alone signed up a combined 71 percent of the three million new broadband customers in the U.S.

“Cable operators continue to increase market share in U.S. broadband,” said Jason Blackwell, a director at Strategy Analytics. “Over the past twelve months, Comcast has accounted for 42 percent of new subscribers among the operators that we track.  Fiber growth is still strong, but the telco operators haven’t been able to shake off the losses of DSL subscribers.  In 2016, we expect to see a real battle in broadband, as cable operators begin to roll out DOCSIS 3.1 for even higher speed offers, placing additional pressure on telcos.”

That battle will come in the form of upgraded economy broadband plans, many arriving shortly after providers upgrade to the DOCSIS 3.1 cable broadband platform. Currently those plans offer speeds ranging from 2-6Mbps. Starting next year, customers can expect economy plan prices to stay generally comparable to DSL, with promises of faster and more consistent speeds. A source tells Stop the Cap! at least two significant cable operators are considering 10Mbps to be an appropriate entry-level broadband speed for 2016, in keeping with FCC chairman Thomas Wheeler’s dislike of Internet speeds below 10Mbps.

slowJust a few years earlier, most providers wouldn’t think of offering discounted 10Mbps service, fearing it would cannibalize revenue as customers downgraded to get lower priced service. Increasing demands on bandwidth from online video and multiple in-home users have gradually raised consumer expectations, and their need for speed.

Unfortunately for many phone companies that have neglected significant investment in their aging wireline networks, the costs to keep up with cable will become unmanageable unless investors are willing to tolerate significant growth in capital expenses to pay for network upgrades. Frontier Communications still claims most of their customers are satisfied with 6Mbps DSL, neglecting to mention many of those customers live in areas where cable competition (or faster service from Frontier) is not available.

Where competition does exist, it’s especially bad news for phone companies that still rely on DSL. Earlier this year, Frontier’s former CEO Maggie Wilderotter admitted Frontier’s share of the residential broadband market had dropped to less than 25% in 26 of the 27 states where it provides service. In Connecticut, the one state where Frontier was doing better, its acquired AT&T U-verse system has enabled the phone company to deliver broadband speeds up to 100Mbps. But even those speeds do not satisfy state officials who are seeking proposals from providers to build a gigabit fiber network in a public-private partnership.

DSL speed upgrades have been spotty and more modest.

DSL speed upgrades have been spotty and more modest.

Frontier’s recent experiments with fiber to the home service in a small part of Durham, N.C., and the unintentional revelation of a gigabit broadband inquiry page on Frontier’s website suggests the company may be exploring at least a limited rollout of gigabit fiber service in the state. But company officials have also repeatedly stressed in quarterly results conference calls there were no significant plans to embark on a major spending program to deliver major upgrades across their service areas.

Some phone companies may have little choice except to offer upgrades where cable operators are continuing to rob them of customers. In the northeast, where Frontier has a substantial presence, cable operators including Charter, Comcast and Time Warner Cable are committing to additional speed upgrades. Time Warner Cable’s current standard speed of 15Mbps will rise to 50-60Mbps in 2016, up to ten times faster than Frontier’s most popular “up to” 6Mbps DSL plan.

Most of the broadband customer gains won by Comcast and Time Warner Cable come as a result of DSL disconnects. AT&T said goodbye to 106,000 customers during the third quarter. Verizon managed to pick up 2,000 new subscribers overall, almost all signing up for FiOS fiber to the home service. No cable operator lost broadband market share, reported analyst firm Evercore. Leichtman Research offered additional insight, finding AT&T and Verizon were successful adding 305,000 U-verse and FiOS broadband customers, while losing 432,000 DSL customers during the same quarter.

The message to phone companies couldn’t be clearer: upgrade your networks or else.

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