AT&T CEO John Stankey is still looking to wring costs out of the business, and the company’s rural landline customers are next to take the cut.

At this morning’s J.P. Morgan Technology, Media and Communications Conference for investors, Stankey said AT&T is considering mothballing landline facilities in rural parts of its service area and offer wireless service instead.

“We have a voice replacement service now, so that allows us to look at our options around the footprint […] and begin the work of starting to shed some of that footprint and reduce the number of square miles that have that fixed infrastructure in place [where] you’re never going to have an incentive to ultimately upgrade to fiber,” Stankey told investors, quickly correcting himself over use the word ‘never’ in favor of “the next several years.”

“The best way to serve them is with robust wireless infrastructure and stepped up investment in that case and we will do that,” he added.

AT&T has been testing fixed wireless replacement phone service in parts of the southern United States for several years, to very mixed reviews. In these trials, AT&T rural landline customers receive a wireless modem that connects with existing home phone lines. Internet service is provided over AT&T’s 4G LTE network.

Stankey

AT&T ceased marketing its DSL service last October, although some Stop the Cap! readers claim they still occasionally receive targeted invitations for DSL service in some areas. The company has allowed its current rural DSL customers to keep their service, but many don’t. The company lost almost 39,000 DSL customers in the first three months of this year, with so signs of stopping. Across AT&T’s landline footprint, which extends from the Great Lakes region to the South as far west as Texas and east to Florida, there are only about a half-million AT&T DSL customers remaining. Most of those customers keep the service because they have no other options.

If AT&T wins FCC approval to decommission its wired network in rural areas where it has no plans to provide fiber to the home service, customers will lose traditional landline phone service and DSL.

Stankey said any serious effort in that direction is unlikely to begin until 2023, largely because AT&T will not make the investments to bolster its rural wireless infrastructure until then.

The CEO also foreshadowed no immediate plans to follow Verizon into the 5G wireless home internet business. In fact, Stankey admitted AT&T’s network is likely inadequate to support the data demands of home broadband customers.

That leaves rural customers in AT&T’s service areas with no hope of high-speed upgrades unless a community broadband provider launches or a cable operator agrees to wire rural areas. There are still questions about the capacity next generation satellite internet service will have in rural areas and whether service will be adequate to meet today’s data demands.

AT&T’s customers in urban and major suburban areas have a brighter future, however. Stankey told investors AT&T will expand its fiber to the home service to another three million households in 2021 and at least four million more in 2022. Overall, AT&T plans to provide fiber service to around 30 million homes and businesses in its wireline service area. If adequate returns on investment can be realized, along with reduced upgrade costs to reach each home, Stankey suggested another 10 million customer locations could one day see fiber service as well.

T-Mobile is widening its wireless home broadband pilot program to cover more than 20 million additional underserved and unserved households in 130 communities in parts of nine states.

“Home broadband has been broken for far too long, especially for those in rural areas, and it’s time that cable and telco ISPs have some competition,” said Dow Draper, T-Mobile executive vice president of Emerging Products. “We’ve already brought T-Mobile Home Internet access to millions of customers who have been underserved by the competition. But we’re just getting started. As we’ve seen in our first few months together with Sprint, our combined network will continue to unlock benefits for our customers, laying the groundwork to bring 5G to Home Internet soon.”

T-Mobile Home Internet customers currently pay $50 a month for unlimited wireless internet for their home or business, using T-Mobile’s existing 4G LTE network. To prevent cell tower saturation, T-Mobile is making the service available on a first-come, first-served basis, where coverage is eligible, based on equipment inventory and local network capacity. T-Mobile is also protecting its high-value mobile customer base by prioritizing mobile network traffic, so speeds may slow for home internet customers during times of peak cell tower usage.

The company adds that its 4G service will soon be joined by a 5G home internet service, which should increase speeds and capacity. The company claims:

• The service is self-installed, so no installation visits or charges.
• Taxes and fees included.
• No annual service contracts.
• No “introductory” price offers.
• No hardware rental or sign-up fees.
• No data caps, but network prioritization may affect speed during peak usage periods, and video streaming resolution may be limited based on available speed in your location.

Other Details:

• Pricing: $50/month with AutoPay (price includes sales tax and regulatory fees “for qualifying accounts” whatever that means, and if you don’t AutoPay, the price is $5 higher.)
• Credit approval required.
• T-Mobile will supply an LTE Wi-Fi Gateway with the service, for in-home use only at the address on the account. The gateway must be returned if you cancel service or pay $207.

List of New Cities & Towns:

Michigan

• Adrian
• Alma
• Alpena
• Ann Arbor
• Battle Creek
• Bay City
• Big Rapids
• Cadillac
• Coldwater
• Detroit-Warren-Dearborn
• Flint
• Grand Rapids-Kentwood
• Hillsdale
• Holland
• Jackson
• Kalamazoo-Portage
• Lansing-East Lansing
• Ludington
• Midland
• Monroe
• Mount Pleasant
• Muskegon
• Niles
• Saginaw
• Sault Ste. Marie
• South Bend-Mishawaka
• Sturgis
• Traverse City

Minnesota

• Albert Lea
• Alexandria
• Austin
• Bemidji
• Brainerd
• Duluth
• Fairmont
• Faribault-Northfield
• Fergus Falls
• Grand Rapids
• Hutchinson
• Mankato
• Marshall
• Minneapolis-St. Paul-Bloomington
• New Ulm
• Owatonna
• Red Wing
• Rochester
• St. Cloud
• Willmar
• Winona
• Worthington

New York

• Binghamton
• Corning

North Dakota

• Bismarck
• Dickinson
• Jamestown
• Minot
• Williston
• Fargo
• Grand Forks
• Wahpeton

Ohio

• Akron
• Ashland
• Ashtabula
• Bucyrus-Galion
• Cambridge
• Canton-Massillon
• Cleveland-Elyria
• Coshocton
• Defiance
• Findlay
• Fremont
• Lima
• Mansfield
• Marion
• New Philadelphia-Dover
• Norwalk
• Salem
• Sandusky
• Tiffin
• Toledo
• Wooster
• Youngstown-Warren-Boardman

Pennsylvania

• Altoona
• Bloomsburg-Berwick
• Chambersburg-Waynesboro
• DuBois
• East Stroudsburg
• Erie
• Gettysburg
• Harrisburg-Carlisle
• Huntingdon
• Indiana
• Johnstown
• Lancaster
• Lebanon
• Lewisburg
• Lewistown
• Lock Haven
• Meadville
• New Castle
• Oil City
• Pittsburgh
• Pottsville
• Reading
• Sayre
• Scranton–Wilkes-Barre
• Selinsgrove
• Somerset
• St. Marys
• State College
• Sunbury
• Williamsport
• York-Hanover
• Allentown-Bethlehem-Easton

South Dakota

• Aberdeen
• Brookings
• Huron
• Mitchell
• Pierre
• Rapid City
• Sioux Falls
• Watertown
• Yankton

West Virginia

• Clarksburg
• Cumberland
• Elkins
• Morgantown
• Weirton-Steubenville
• Wheeling

Wisconsin

• Eau Claire
• La Crosse-Onalaska
• Menomonie
• Wisconsin Rapids-Marshfield

T-Mobile Home Internet: This company supplied video explains how the service works. (1:15)

Verizon is introducing a new wireless home broadband service that will target customers that can get good cell phone reception from home but are stuck with slow speed DSL from the phone company, or no internet access at all.

Verizon’s new LTE Home Internet will offer customers speeds of 25-50 Mbps without data caps on Verizon’s already built 4G network. The service launched this week in Savannah, Ga., Springfield, Mo., and Tri-Cities, Tenn./Va./Ky. Starting today, Verizon says it will expand home internet access to customers outside of its existing Fios and millimeter-wave 5G Home footprints, primarily to reach rural customers.

“With LTE Home Internet, our most awarded 4G LTE network will provide internet connectivity for customers in more rural parts of America who may not have access to broadband internet service – a critical need, especially now, when so many are counting on reliable connectivity for remote work and educational needs,” said Frank Boulben, senior vice president of Consumer Marketing and Products at Verizon.

The service and equipment are sold at different prices depending on how much business you already do with Verizon:

LTE Home Internet Service Pricing

• If you do NOT have an active Verizon mobile plan and DO NOT WISH to enroll in paper-free billing and auto-pay, the service costs $70/month.
• If you do NOT have an active Verizon mobile plan or one that costs less than $30/month and ARE WILLING to enroll in paper-free billing and auto-pay, the service costs $60/month.
• If you DO have an active Verizon mobile plan that costs $30/month or more and DO NOT WISH to enroll in paper-free billing and auto-pay, the service costs $50/month.
• If you DO have an active Verizon mobile plan that costs $30/month or more and ARE WILLING to enroll in paper-free billing and auto-pay, the service costs $40/month.
• The required LTE router costs $240 or $10/month for 24 months (0% interest) on Verizon’s Device Payment Plan. If you order the router using “device payments,” you will receive a $10/month promotional credit for the next 24 months, making the router free of charge if you stay with the service for two years. If you cancel service early, the remaining payments will become due immediately.

Although the service cannot match the speeds offered by modern cable and fiber broadband networks, Verizon’s wireless speeds do appear to qualify as “broadband service” and for the first time on a 4G LTE network, do not include any data caps or sneaky speed throttling, making it a potentially respectable option for those in rural areas looking for something better than phone company DSL.

Verizon offers this coverage check tool to determine if service is available in your area. If not, you can leave your e-mail address and phone number and Verizon will contact you as the service expands.

This Verizon-provided video introduces the company’s new LTE Home Internet service, a wireless broadband option without data caps for those looking for rural access or something better than phone company DSL. (1:25)

Spectrum Mobile customers enrolled in an unlimited data plan will get free access to Verizon’s millimeter wave 5G network, if they own a device that supports 5G service.

Charter Communications extended its deal with Verizon Wireless, which currently supplies Spectrum Mobile with 4G LTE service, to include Verizon’s 5G service, now available in a few neighborhoods in these cities:

• Atlanta
• Chicago
• Dallas
• Grand Rapids
• Houston
• Los Angeles
• New York City
• Providence
• St. Paul
• Boise
• Cincinnati
• Denver
• Greensboro
• Indianapolis
• Memphis
• Omaha
• Salt Lake City
• Washington D.C.
• Boston
• Cleveland
• Des Moines
• Hampton Roads
• Kansas City
• Miami
• Panama City
• Sioux Falls
• Charlotte
• Columbus
• Detroit
• Hoboken
• Little Rock
• Minneapolis
• Phoenix
• Spokane

Customers on Spectrum’s pay-per-gigabyte plan can access Verizon 5G service by switching to Spectrum’s $45 unlimited plan. Otherwise, they will remain locked to Verizon’s 4G LTE network only. Spectrum Mobile is selling customers Samsung’s S20, S20+, and S20 Ultra 5G-capable phones with financing package prices ranging from $41-58 a month, and promises other 5G-capable devices will also be supported in the future.

At present, Verizon’s millimeter wave 5G service only works outdoors and is generally only available in very limited urban areas, often in business, shopping, or entertainment districts downtown. Charter is considering launching its own wireless network in the future utilizing CBRS frequencies, which can reach indoors and can travel over longer distances than millimeter wave technology. For now, Spectrum Mobile is dependent on Wi-Fi and Verizon Wireless’ nationwide network.

T-Mobile is gradually expanding its new fixed wireless home broadband service, prioritizing rural areas next to major highways where the mobile provider has strong 4G LTE service.

T-Mobile Home Internet is initially being targeted to rural customers unlikely to have high speed internet access from a cable company or are stuck with low speed DSL from the phone company. It offers “unlimited service” with no data caps, but T-Mobile reserves the right to temporarily throttle speeds of users exceeding 50 GB of usage per month when their local cell tower is congested. Customers can check T-Mobile’s fixed wireless website to see if they qualify for service.

A Stop the Cap! reader in Indiana testing the service over the last month reports speeds averaging around 50/3 Mbps, with ping times often 30 ms or much more, which makes the service problematic for video games. But T-Mobile Home Internet works fine with streaming video services.

(Image: The Gadgeteer)

The service is currently available only in a few areas. T-Mobile is carefully managing the service by registering the customer’s wireless home internet equipment to a specific cell tower. Customers are not allowed to take the service on the road, such as on vacation. Since the service relies on T-Mobile’s existing 4G LTE cell tower network, it is essential to balance capacity between fixed wireless customers and T-Mobile’s existing mobile users. Pricing is comparable to Verizon’s 5G Home Internet and in most cases the price includes taxes and fees.

T-Mobile began marketing the service to its existing customers in qualified service areas over the summer. Among those enrolled, none have reported speed throttling, despite the fine print warning to heavy users.

“I consistently use over 250 GB a month and speeds have never been impacted,” our reader told us. “However, speeds can suffer around rush hour, when I suspect more people are using their cell phones. But they are still 25+ Mbps for downloads.”

Customers signing up for the service will receive:

• a T-Mobile LTE Wi-Fi Gateway with a pre-installed T-Mobile SIM card;
• A 5200mAh battery backup, also likely for future portability options;
• AC Adapter;
• Quick Setup Manual.

(Image: The Gadgeteer)

There is no charge for the equipment and start-up kit, but it remains the property of T-Mobile and needs to be returned if you cancel, otherwise T-Mobile will charge you $207.

Users plug in the equipment in an area of their home that gets the strongest T-Mobile reception. Once T-Mobile’s LTE network is detected, the service will register and activate service on the T-Mobile cell tower. Customers manage the rest of the service with a smartphone app, which configures Wi-Fi capable devices, sets streaming speeds, and allows customers to check usage. There are two LAN ports on the back of the device for Ethernet connections and a phone jack, presumably to support landline service sometime in the future. Most will be able to configure the service in less than 10 minutes.

Ironically, one service T-Mobile explicitly says won’t work with its fixed wireless offering is T-Mobile’s new TVision live TV service. But customers report no problems using AT&T TV Now and Hulu’s Live TV service.

The included backup battery provides long lasting power to stay connected during a power interruption.

Customers have reported favorable impressions of the service, assuming they have a solid signal from a nearby cell tower. T-Mobile is cautiously marketing the service only to customers where cell towers are not already congested, and only in areas relatively close to a nearby cell tower, to assure good reception. T-Mobile can also self-limit the number of fixed wireless customers signed up for each cell tower. That means most of its fixed wireless customers will be in semi-rural areas, often nearby a major road or highway where a T-Mobile tower provides service. It is not likely T-Mobile will initially market fixed wireless service in dense suburban or urban areas, because cell towers are much more likely to be congested. It also seems unlikely T-Mobile will sell the service in deeply rural areas where it lacks good cell coverage because T-Mobile is relying on its existing network of cell towers to support the fixed wireless service.

An excellent review of the service and its features has been written by The Gadgeteer.

T-Mobile explains how its fixed wireless home internet service works. (1:15)