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AT&T to Waive Overlimit Fees for Tornado Victims, But Still Charges Them for Texting

Phillip Dampier May 21, 2013 AT&T, Consumer News, Data Caps, Wireless Broadband Comments Off on AT&T to Waive Overlimit Fees for Tornado Victims, But Still Charges Them for Texting

att-logo-221x300AT&T wants everyone in Oklahoma City to stay off the phone and rely on text messaging for communications with family, friends, and loved ones “given high call volumes.”

Although AT&T has announced it is waiving voice, data, and text overage charges through June 30 for customers in the affected areas, it won’t automatically waive your bill for services you cannot use or per message charges incurred if you do not have a texting plan.

“AT&T customer service told me the waived fees only cover overlimit fees, not plan fees,” says Susan Ramos, who received a text message on her AT&T phone advising her of the special tornado victim compensation plan. “When I called them to learn the exact terms, they told me if you don’t have a text plan, for instance, you will still be charged a per message fee.”

Ramos, who is in Moore, Okla., tells Stop the Cap! AT&T is pleading Oklahoma City customers to stay off their cell phones and rely on text messaging. But without a text plan AT&T will charge 20 cents per text message, 30 cents for each picture or video message.

Looking at AT&T’s website, their generous offer doesn’t seem so generous when you notice they are only selling a $20 texting plan that already provides unlimited messages,” Ramos notes. “How about just waiving all text message fees for everyone until June 30?”

AT&T’s remaining unlimited data customers in the area also wonder whether the company’s notorious speed throttle will still kick in after using a few gigabytes.

Ramos doesn’t think AT&T’s offer to waive voice overages means all that much either.

“Does anyone ever exceed their voice allowance anymore?” she asks. “Besides, they don’t want you using your phone for voice calling anyway.”

Time Warner Cable Shareholders Take Company to Task Over ALEC Involvement

Phillip Dampier May 21, 2013 Consumer News, Public Policy & Gov't Comments Off on Time Warner Cable Shareholders Take Company to Task Over ALEC Involvement

twc logoTime Warner Cable executives got an earful last week from investors concerned about the amount of money the company is spending on lobbying activities, the lack of full disclosure on where that money is going, and the cable operator’s continued corporate support for the American Legislative Exchange Council (ALEC).

Among those attending the Time Warner Cable Annual Shareholder Meeting in Saratoga Springs, N.Y., was Tim Smith from Walden Asset Management, which owns 369,000 shares of the company.

Smith, along with 16 co-sponsors, introduced a proposal to force better disclosure of how their shareholder money was being spent on lobbying, noting Time Warner Cable paid close to $28 million on lobbying from 2008 to 2012.

“It’s interesting to note that Time Warner Cable’s spending on lobbying was almost five times the average of its peers,” Smith told the board of directors.

Smith noted that Time Warner Cable’s current quarterly disclosures were opaque and hard for the average person to understand and that the company provided almost no information on state lobbying, which he called a “big, big gap.”

Smith

Smith

“You [also] do not disclose details of the amount of dues to trade associations that engage in lobbying nor the portion used for lobbying,” Smith complained. “So for example, if a company is a member of the Business Roundtable or the U.S. Chamber of Commerce, over 40% of those dues are spent on lobbying. So we think that is important to be a disclosed and in the public record.”

Smith noted that Time Warner Cable abandoned its financial support of The Heartland Institute, a Koch Brothers’ backed group that has argued for deregulation of the telecommunications industry, fought against Net Neutrality, and supports consumption billing and usage caps. A number of corporations stopped supporting the group after its corporate contribution list was leaked to the media in early 2012. Time Warner Cable told Walden Capital Management it dropped support of the group later that same year.

But Smith remained unhappy Time Warner Cable continues to support ALEC.

“Time Warner Cable’s continuing support for the American Legislative Exchange Council, which is called ALEC, is highly controversial and really we think it’s harmful to our brand,” Smith argued. “Right now, the American Legislative Exchange Council is working with The Heartland Institute, where we withdrew, working on a campaign around this country to try to stop renewable energy legislation and regulation. That’s our money at work, and we’re not dissenting. We’re not standing up and saying, ‘This is not Time Warner Cable.'”

CEO Glenn Britt claimed the lobbying expenses were important because Time Warner Cable is “a highly regulated company in a highly regulated industry” and that the company exercises “a value judgment” when it chooses to support third-party groups and lobbyists.

Britt also acknowledged ALEC’s extensive database of model, pre-written legislation suitable for introduction on the state level has proved very useful to Time Warner Cable in the past.

“[ALEC] is very helpful in creating a model legislation for all the states we do business in,” Britt said. “They’re particularly focused on telecom matters, which are highly complicated.”

As for other activities ALEC is involved with, such as opposing renewal energy initiatives for large fossil fuel energy companies, Britt said he does make Time Warner Cable’s views known on those issues.

“Quite honestly, if we thought the objectionable part of that outweighed the benefit, then we would consider leaving,” Britt said. “But it’s a constant balancing of that.”

“Although we fully understand the motivation […] the board recommends a vote against this proposal,” Britt concluded.

Time Warner Cable chose the prestigious Gideon Putnam Resort for its annual shareholder meeting, where rooms run $400-800 a night.

Time Warner Cable chose the prestigious Gideon Putnam Resort in Saratoga Springs for its annual shareholder meeting, where rooms run $400-800 a night.

Jim Voye from the International Brotherhood of Electrical Workers (IBEW), a union that owns about 575,000 shares of Time Warner Cable, also rose to introduce a proposal to limit a potential cash cow for executives in the event of a change in control at the company.

CEO Glenn Britt is widely expected to retire at the end of this year. When he does, he will be awarded more than $50 million in Time Warner Cable stock-based awards. That is on top of his targeted annual salary of $16 million.

Time Warner Cable's CEO spent $400,000 in travel on the company's executive jet.

Time Warner Cable’s CEO spent $400,000 of the company’s money traveling on the corporate executive jet.

In the event of such a change, many Time Warner Cable executives will qualify for accelerating vesting of their own equity awards, which the IBEW argues is an incentive to favor short-term improvements in company performance at the cost of long-term growth.

“The vital connection between pay and long-term performance can be severed when awards are paid out at an accelerated schedule,” Voye argued. “A change in control event should not provide an immediate or automatic economic windfall to planned participants, especially one that could incentivize executives to pursue transactions that are not in the best long-term interest of shareholders.”

Britt recommended a vote against that proposal as well.

During a question and answer section, Smith noted Britt spent $400,000 of the company’s money on corporate jet travel expenses.

Britt also acknowledged the cable industry’s business model has been largely the same across the country, and there is little to differentiate the financial results of one cable company over others.

“We, the cable companies all tend to look the same and I don’t think it’s going to be any different in this case,” Britt said.

When Cable Contractors Attack: Charter Cable Tech Ties Up Customer, Sexually Assaults Her

Phillip Dampier May 20, 2013 Charter Spectrum, Consumer News, Public Policy & Gov't, Video Comments Off on When Cable Contractors Attack: Charter Cable Tech Ties Up Customer, Sexually Assaults Her
Helderle

Helderle

A Charter Cable technician from St. Charles, Mo. was convicted of tying up and sexually assaulting an O’Fallon customer after she reported him for asking her out in an unwanted text message.

Jurors deliberated for only about an hour before convicting 22-year old Michael Helderle on four felony counts, recommending a 75 year prison sentence.

Helderle was employed by Communications Unlimited, a contractor performing work on behalf of Charter Communications.

When the victim requested a service call from Charter on Dec. 4, Helderle showed up. He obtained her cell phone number and asked her out on a date later that evening. The victim reported the text message to Charter and Helderle was fired.

The next day, Helderle broke into her apartment while she was on a video chat with her boyfriend, who was 1,700 miles away on an Air Force base. He called authorities after witnessing Helderle in the apartment.

Helderle handcuffed and tied up the victim, gagged and sexually assaulted her, covering her with a pillow. He then stole her cell phone and cash. When police arrived, Helderle placed a knife to the victim’s throat and threatened her if she called out.

Charter_logoHelderle eventually escaped the apartment while police untied the victim. He was arrested hours later.

Charter defended its actions after the incident:

“Charter recognizes that it is a privilege to be allowed into customers’ homes to install our services. Our customer’s safety is of utmost importance and precautions are taken seriously. We require criminal background checks on all in-home contractors prior to performing any work for Charter.”

It was not enough to avoid offering Helderle employment.

Cable operators use third-party contractors to cut costs and sometimes limit liability. Critics contend third-party contractors often use lower standards of employment and compensate their workers at a considerably lower rate of pay with fewer benefits.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/KSDK St Louis James Helderle charged with tying up woman 12-06-12.flv[/flv]

KSDK in St. Louis covered the break-in and sexual assault back in December in this video report.  (2 minutes)

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/KSDK St Louis James Helderle convicted of burglary and sodomy 5-16-13.flv[/flv]

KSDK followed up on the story last week, noting the Charter Cable subcontractor was convicted of burglary and sodomy.  (2 minutes)

Cell Phone Service Fails Tornado Victims in Moore, Okla.; Landlines Still Working in Many Areas

Phillip Dampier May 20, 2013 AT&T, Consumer News, Video, Wireless Broadband Comments Off on Cell Phone Service Fails Tornado Victims in Moore, Okla.; Landlines Still Working in Many Areas
KFOR-TV in Oklahoma City captured this image of the destructive tornado that flattened parts of Moore, Okla.

KFOR-TV in Oklahoma City captured this image of the destructive tornado that flattened parts of Moore, Okla.

Widespread cell phone outages and overcongested wireless networks are hampering efforts to find missing loved ones or call for help in areas hard-hit by this afternoon’s devastating tornado affecting Moore, Okla., a suburb of Oklahoma City. But in many areas escaping the worst of the storm, landline service is performing normally.

“We have no coverage and no signal from any cell phone provider in this part of Moore, despite the fact we escaped the tornado with no damage,” reports Susan Ramos, who was staying in Moore to deal with a family emergency. “We have borrowed a nearby neighbor’s home phone which is still working fine. My relatives back home in Texas have been worried sick not hearing from us that we are okay.”

One of the first victims of the tornado touchdown were communications towers, some damaged by the wind, others now missing a wired connection back to the network provider. Many of those still in service are overloaded with callers. Some cell towers are performing double or triple duty, handling calls from neighborhoods that would have been ordinarily served by other towers no longer functioning. The result is a cell network clogged with calls, making it next to impossible to reach storm-affected areas.

Some residents are traveling by foot or vehicle on debris-cluttered roadways looking for a cell tower that can still handle calls.

Oklahoma City media reports AT&T is asking residents to refrain from making or receiving wireless voice calls. Instead, the company is asking cell customers to only use text messaging until further notice.

Although landline infrastructure was also destroyed in and around the direct path of the tornado, adjacent areas still have service, including areas where cell phone service has failed.

no service

“Finding pay phones in this area is not easy, and I don’t know Moore too well and many businesses closed down early after the storm, so we are grateful to a nearby neighbor we don’t even know who kept their phone service and let us use it.” Ramos added. “Now we know canceling our own wired home phone was probably a mistake after seeing what happens in emergencies.”

Cell phone providers are coordinating to transport portable cell towers into Moore and other affected areas within the next day or so if normal cell service cannot be quickly restored. But for residents desperate to communicate, the failure of the local cell phone network, either because of storm damage or insufficient capacity, has proved frustrating.

[flv width=”596″ height=”356″]http://www.phillipdampier.com/video/NBC News Moore Residents Cell Phone Service 5-20-13.flv[/flv]

NBC News talks with storm survivors frustrated by the lack of cell phone service in Moore, Okla.  (2 minutes)

N.Y. PSC Grants Limited Approval of Verizon Voice Link on Fire Island; Promises Further Study

Verizon Voice Link: The company's landline replacement, works over Verizon Wireless.

Verizon Voice Link: The company’s landline replacement, works over Verizon Wireless.

The New York Public Service Commission has granted limited approval for a Verizon Communications plan to replace traditional landline service on the western half of Fire Island with a wireless voice service some users complain is unstable and unreliable.

Verizon claims its landline network on Fire Island has been damaged irreparably in places, and argued it needed to immediately deploy a wireless alternative before the arrival of thousands of tourists on the island, a popular summer destination.

On May 3, Verizon asked the commission to approve the use of Voice Link, which provides fixed wireless phone service, anywhere in the state if the company can prove there is an equal competitor or if existing copper-based facilities are damaged or too costly to upgrade.

Stop the Cap! reminded local politicians, union representatives, and consumer advocates Verizon’s CEO earlier promised it would decommission its copper wire networks in rural areas in favor of wireless, mostly for financial reasons. The New York State Attorney General’s office took careful note of McAdam’s commitment to abandon copper in their objection letter to the commission.

Verizon CEO Lowell McAdam in 2012:

The vision that I have is we are going into the copper plant areas and every place we have FiOS, we are going to kill the copper. We are going to just take it out of service and we are going to move those services onto FiOS. We have got parallel networks in way too many places now, so that is a pot of gold in my view. And then in other areas that are more rural and more sparsely populated, we have got LTE built that will handle all of those services and so we are going to cut the copper off there. We are going to do it over wireless.

Verizon’s efforts to rush a tariff change without adequate public notice or formal hearings brought complaints from affected customers, unions, and area politicians.

The Communications Workers of America called Verizon’s emergency “self-made.” The company could have begun repair work on Fire Island as early as last November, but instead only came to regulators earlier this month with its Voice Link proposal, while much of the western half of the island remains out of service.

CWA officials are concerned Verizon is using Hurricane Sandy as an excuse to carry out its broader agenda of abandoning rural New York’s landline infrastructure in favor of wireless service.

“Playing on sympathy for the plight of customers whom it has left without service for more than six months, Verizon proposes to implement broad, generic rules that go to the core of its obligation to serve,” said CWA vice president Chris Shelton.

verizonThe union considers Verizon’s wireless alternative less adequate than the wireline facilities Verizon wants to abandon. The CWA wants the PSC to study Voice Link’s performance during times of peak cellular usage times, power outages, adverse weather, and inadequate reception.

Thomas Barraga, a legislator in Suffolk County, says his constituents with Voice Link service are already unhappy with its performance and reliability.

“Residents and business owners who had Voice Link installed after Sandy say the connection is unstable and unreliable, and doesn’t provide for DSL Internet or fax service,” Barraga wrote in a letter to the PSC.

“Internet service is so much a part of everyday life it should be consider a basic service and they should be mandated to provide this as well,” writes Fire Island resident Robert Gonzalez. “They should provide this for the same fees and usage rates as they had previously been charging.  As of today they are price gouging.  Prior to Sandy we paid approximately $50 per month for unlimited Internet access.  Now they are putting low limits on our usage for the same $50 per month with severe penalties for going over.  You can opt for higher usage plans at a much greater cost and they are not offering an unlimited plan.”

Stop the Cap! also continues to hear from Fire Island residents about their dissatisfaction with the service. Among the newest complaints we have received:

  • “It doesn’t work with collect calls and you cannot dial “0” for operator assistance;”
  • “I have to dial 10 digits for all calls, seven digit dialing no longer works even though it did before;”
  • “Call Waiting and Caller ID often do not work, and my unit does not ring for incoming calls about 30% of the time and people have to keep calling me back;”
  • “When you attempt to take a call when on the line with someone, you cannot get them back after answering a new call;”
  • “I cannot use this with my home alarm system at all and the monitoring company keeps notifying police because they think my phone line was cut;”
  • “If we had a major storm with three days of power being out, Verizon’s claim Voice Link will work for two hours without power means I would have to feed it up to 72 ‘AA’ batteries, costing more than what the phone line costs me every month;”
  • “What does this do to our future? It makes us second class citizens without access to the Internet except through very expensive wireless capped usage plans that cost much more.”

The PSC ruled that allowing Verizon to deploy Voice Link on Fire Island during the peak tourist season will make sure adequate phone service is up and running as quickly as possible. But the commission also made it clear it is unwilling to approve Verizon’s request to extend the service further into rural New York without a thorough review of its performance and customer reaction.

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