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CBS and Viacom Move Closer to Multi-Billion Dollar Mega-Merger Under CBS Name

Phillip Dampier August 6, 2019 Competition, Consumer News, Online Video, Video Comments Off on CBS and Viacom Move Closer to Multi-Billion Dollar Mega-Merger Under CBS Name

CBS and Viacom are one important step closer to merging under the CBS name, creating one of the country’s largest programming and broadcasting powerhouses.

Last week, the two companies’ board of directors agreed on who would run the combined company that will be worth tens of billions of dollars.

Under the agreement, the top spot will go to current Viacom CEO Bob Bakish, according to a report in the Los Angeles Times. Bakish has been working with Viacom to transform its operations in a world increasingly dominated by cord-cutting and online streaming. Viacom had a reputation of being ruthless with its cable and satellite partners, demanding some of the industry’s highest rates for Viacom-owned cable channels, causing some cable operators to drop Viacom networks from their cable TV lineups.

It will not be the first time CBS and Viacom have been merged. Owner Sumner Redstone kept the two companies together until splitting them apart in 2006. Shortly after, Redstone’s declining health led to warring factions inside the two companies and several legal disputes with Sumner’s daughter Shari, who took over for her 96-year-old father. Former CBS CEO Les Moonves long opposed a merger between CBS and Viacom, but Moonves was forced out of CBS because of a burgeoning sexual harassment scandal. His replacement, acting CBS CEO Joseph Ianniello, is said to be sanguine about the merger deal, even though it would result in a demotion to managing CBS’ broadcast network, owned and operated TV stations, and Showtime.

The merged company would absorb Viacom into CBS, putting assets including Comedy Central, MTV, VH-1, Nickelodeon, BET, and Paramount Pictures under CBS ownership and control.

Three people close to the situation cautioned talks were still ongoing and not final.

Fox Business News reports the merger of CBS and Viacom may be imminent. Will they also acquire Discovery Networks? (4:53)

5G Hype: Current 5G Networks Are Fast, But Coverage Is Awful (And Phones Get Really Hot)

Verizon, AT&T, and T-Mobile’s 5G launches are blazing fast, when you can find a signal, but your phone will also get blazing hot while using it.

The Wall Street Journal embarked on testing current 5G launches in several American cities and found speeds on 5G nearing 1,800 Mbps in some places, but the millimeter-wave frequencies most carriers are using for mobile 5G don’t travel far and are subject to disappear just by walking down the street, around the corner, or indoors.

Some devices with 5G support are also suffering from heat issues, sometimes causing phones to heat up to over 105° and drop 5G service in favor of less battery-intense 4G LTE. Network engineers admit they bring coolers filled with ice to cool down overheating 5G phones.

Only Sprint’s mid-band 5G network in Chicago offered a much larger coverage area that still worked after walking indoors, and devices remained cool to the touch while using it. But Sprint’s 5G service sacrifices performance for coverage, often topping out at around 200-300 Mbps.

The Wall Street Journal found a reporter, a tent, and some new 5G devices and sent them out to test some of America’s new 5G services. (5:39)

Verizon Delays Shutdown of 3G CDMA Network Until the End of 2020

Verizon Wireless customers with older devices still reliant on 3G CDMA technology will be able to continue using them on Verizon’s network until the end of 2020.

The wireless giant confirmed this week it is postponing its retirement of 3G service for a year. The company had planned to switch off support for 3G at the end of 2019.

Verizon spokesperson Howie Waterman told Light Reading the action is intended to give impacted customers “an extra year to decide what they want to do.”

Verizon had given priority to discontinuing 3G service so it can repurpose that spectrum for its 4G LTE network, which is approaching capacity in some areas. The company originally warned customers and its reseller MVNO partners back in 2016 that it would end 3G service on Dec. 31, 2019. It also stopped activating 3G-only phones on its network in July 2018.

Starting in early 2020, Verizon will no longer permit customers to transfer 3G phone service from one account to another, activate 3G service on a pre-existing line, swap a malfunctioning or lost 3G device for another 3G device, or use a 3G phone to roam outside of the U.S. Verizon hopes customers will see the restrictions as a motivation to upgrade to a new 4G LTE phone.

 

Wisconsin DoT: ‘Frontier Ignored Requests and Violated State Code,’ Wiping Out Phone Service in Rhinelander

Phillip Dampier July 31, 2019 Consumer News, Frontier, Public Policy & Gov't, Video 1 Comment

Frontier Communications customers across Rhinelander, Wis. were left without phone and internet service for a day after a construction crew cut fiber optic and copper cables that Frontier earlier promised to move, but never did.

In early July, service across parts of the city of 8,000 was knocked out as construction crews worked on a new roundabout, severing communications cables thought to be inactive. As a result, area businesses could not process credit card transactions, the local airport was disrupted, and medical clinics had to resort to cell phones to manage information about their patients.

Frontier later aggravated state officials by putting the blame for the outage on the construction crew.

“Frontier notified the contractor the cable was still in place and that its location was properly marked. It appears, the backhoe operator did not verify the depth of the cable, resulting in the cut,” said Frontier spokesman Javier Mendoza in an email at the time.

But a local TV station unearthed documents with an open records request that now point the finger of responsibility solely at Frontier.

Rhinelander, Wis.

On July 3, the Wisconsin Department of Transportation notified Frontier it was in violation of the Wisconsin Administrative Code because the company had promised to move the communications cables prior to the roundabout construction, but apparently never did.

“Unfortunately, Frontier did not relocate its facilities into this new conduit and never shared that fact with anyone. This caused the existing facility to be cut,” according to DoT utility engineer Chris Peplinski. The project manager, Dan Erva, wrote a frustrated internal email about the debacle that same day.

“At no point did anyone from Frontier or their contractors let us know that they did not relocate and [abandon] the lines as indicated in the work plan and contract special provisions,” Erva wrote.

Frontier could be held financially liable for the contractor delays.

This has not been the first frustrating experience customers and Wisconsin officials have had dealing with Frontier. In April, one outage left more than three dozen Rhinelander customers without service for weeks, and customers accused the company of being unable to give any straight answers about how and when service would be restored. Among those affected, one customer relying on medical monitoring equipment. She reportedly was given the runaround and even hung up on by Frontier customer service.

Frontier blamed April’s outage on a difficult-to-diagnose problem with a damaged high-capacity telecommunications cable. Frontier officials suggested construction crews were responsible for that damage as well.

“The assessment process for isolating damage to such cables generally takes significant time,” a Frontier spokesperson told WJFW-TV.

Some customers told the TV station they now understand what “significant time” means when dealing with Frontier.

“About 10 days [into the outage] a Frontier truck came around and I asked him, and he says ‘Oh about two days,'” said Sonny Paszak, who relies entirely on his landline. “Well, that was 10 days ago and I still haven’t got it.”

WJFW in Rhinelander, Wis. spoke earlier this year with frustrated Frontier landline customers that lost service for weeks. (2:45)

DirecTV Now Becomes AT&T TV Now, With AT&T TV Coming Later This Summer

Phillip Dampier July 30, 2019 AT&T, Consumer News, DirecTV, DirecTV Now, Online Video 1 Comment

DirecTV Now customers will soon be introduced to AT&T TV Now as the streaming service rebrands with new apps and prepares for the launch of WarnerMedia’s HBO Max streaming service early next year.

The streaming service, originally branded as part of the DirecTV platform, has suffered major subscriber losses (168,000 in the last three months alone) after reducing the size of its TV packages and raising prices twice in the last year. To date, more than 26% of DirecTV Now’s subscriber base has defected to other streaming services, with no end to those losses in sight. AT&T’s DirecTV satellite and U-verse TV have also turned in stunning reductions in the number of subscribers, losing at least two million customers in the last year, with 778,000 departing during the second quarter of 2019.

AT&T has stopped offering deep promotional discounts to most customers threatening to cancel over rate hikes, and subscribers are making good on their threats to leave. The company is also embroiled in two major retransmission consent disputes that have left customers in several cities facing a blackout of as many as three network affiliated local TV stations. With higher prices for fewer channels, and plenty of alternatives, customers are turning to other providers.

AT&T’s 2015 purchase of DirecTV, in retrospect, appears to have been a major business mistake, according to some Wall Street analysts. Originally intended to help AT&T manage the spiraling costs of video for its U-verse TV service by winning more generous volume discounts from programmers, the DirecTV acquisition came just before the phenomenon of cord-cutting took off, leaving all of AT&T’s video services vulnerable to customer losses. DirecTV Now initially benefited from cord-cutters attracted to its generous package of channels at a low price, but an executive decision to reduce the channel lineup while raising prices drove off what executives characterized as ‘undesirable customers only looking for deals.’

AT&T has also been experimenting with a separate streaming service that will likely eventually replace the satellite-based DirecTV. Beta testers have been providing feedback to AT&T about a new set top streaming box intended to work with this service, now to be called AT&T TV. AT&T is also reducing the number of apps required to access its myriad of video services. AT&T TV and AT&T TV Now customers will download the same app, only the channel lineups will be different. The company is targeting AT&T TV Now on cord-cutters looking for a cheaper and smaller video package, while AT&T TV will include a range of packages likely identical or very similar to DirecTV’s current satellite lineup.

If AT&T TV is successful, AT&T can cut costs incurred installing and maintaining satellite dishes and also eventually decommission DirecTV’s satellite fleet. Rural satellite TV customers without access to broadband may be in a difficult position if that happens, and the country has still not resolved the rural broadband challenge.

Even with these changes, AT&T customers are faced with a large menu of potentially confusing video options. AT&T sells traditional live cable TV services through AT&T TV, AT&T TV Now, DirecTV, and U-verse. It also offers a stripped down WatchTV package offering 35 channels for $15 a month or less. Premium customers still trying to tell the difference between HBO Go and HBO Now will soon also contend with HBO Max. Cinemax has its own similar offerings for cable TV customers and direct to consumer subscribers.

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