Eshoo

Rep. Anna Eshoo (D-Calif.), the ranking member on the House Energy and Commerce Communications Subcommittee, will shortly reintroduce legislation that will require wireless companies to disclose more information about the anticipated speeds of their 4G wireless networks.

Eshoo announced her legislative intentions Tuesday at the Broadband Breakfast Club, telling attendees it was important for consumers to know what they are getting before signing a two-year contract.

The anticipated legislation is expected to mirror Eshoo’s 2011 bill — the Next Generation Wireless Disclosure Act (HR 2281), which never made it out of the Republican-dominated House committee.

Eshoo said consumers need clear and concise explanations of data limits, caps, or network management policies that can turn a fast 4G connection into a very slow or expensive one.

Many of the former bill’s supporters echoed carriers use “4G” as a marketing tool which can lead to consumer confusion. Networks ranging from Clearwire’s WiMAX service to T-Mobile’s HSPA+ to Verizon Wireless’ LTE network have all been dubbed “4G,” despite offering widely varying maximum speeds.

Consumers have also faced bill shock when they do not understand their monthly data limits.

Like the last bill, Eshoo’s newest effort is expected to face stiff opposition from wireless carriers and House Republicans, but may raise the temperature on data caps at the Federal Communications Commission, which has faced increasing pressure to become more involved in the issue of usage limits and consumption pricing.

A traditional metrocell, designed to be installed on a utility pole or side of building.

AT&T’s wireless network expansion plans include more than 10,000 new HSPA+/LTE cell sites, 40,000 small “metrocells,” and 1,000 distributed antenna systems (DAS) that will improve network performance, broaden Wi-Fi service, and reduce traffic on its traditional cell tower network.

With much of urban and suburban America (and the roads that connect communities) already covered by cellular networks, AT&T has embarked on an effort to more efficiently manage its wireless traffic.

AT&T, the lowest-rated wireless carrier by Consumer Reports, has suffered from a reputation for dropped calls and inadequate network infrastructure investment. The company has sought to correct those mistakes with the implementation of its multi-billion dollar Project Velocity IP (VIP) program that will expand capacity and bring Wi-Fi to new places.

John Donovan, senior executive vice president of AT&T’s Technology and Network Operations division told attendees at the Citi Global Internet, Media & Communications conference in Las Vegas the company was shifting investment towards deploying small cell technology like “metrocells” that provides service to 32 or 64 concurrent users in a small geographic area. These fiber-fed, low-power small cells traditionally cover areas less than 1.2 miles wide, and can be hidden on utility poles or on buildings.

AT&T intends to leverage its U-verse fiber to the neighborhood network to provide much of the expanded network’s backhaul connectivity, at least in cities where AT&T provides landline service.

With an in-house fiber network, AT&T can more cheaply deploy expanded Wi-Fi that will help the company offload cellular data traffic. AT&T says customers will benefit because Wi-Fi use currently does not count against a customer’s monthly data usage allowance. With Wi-Fi accompanying new metrocell and DAS installations, AT&T customers will eventually see a much larger area of Wi-Fi service on their wireless devices, especially in urban areas.

AT&T’s fall announcement of a renewed push for U-verse compliments plans to expand its wireless network. In cities where AT&T is not the landline provider, the company often contracts with other telecom companies to handle traffic to and from cell sites.

Donovan noted a crucial key to the plan’s success is to demand a more seamless transition to and from Wi-Fi from device manufacturers, automatically switching customers off the cellular network in favor of Wi-Fi, where available. At present, customers make the choice. In the future, the device itself could ultimately become the final arbiter, choosing the strongest, most reliable wireless technology available automatically.

The company has not given up on traditional cell tower networks.

AT&T intends to expand its HSPA+ footprint to 300 million homes by the end of 2014. It reaches around 288 million homes at present, with LTE service available to around 170 million. The company intends to provide both its slower HSPA+ and faster LTE 4G service.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Metrocells.flv[/flv]

Alcatel-Lucent is a supplier of metrocell technology and produced this video explaining why offloading network traffic was important, particularly in large congested cities and at major event venues.  (2 minutes)

AT&T has once again received the dubious distinction of being America’s worst cell phone company, according to ratings (sub. required) from Consumer Reports.

AT&T’s bottom-of-the-barrel status has become something of an annual tradition in the consumer magazine’s ratings, as the company remains in last place year after year for dreadful performance, poor value, and downright lousy customer service. Its one bright spot: the company’s new 4G LTE service, which gets top marks for speed, although that rating comes before the majority of its customers are on the new network.

Verizon Wireless also took a tumble in the ratings published in the January 2013 issue. Verizon got downgraded for its new Share Everything plan, rated as only a fair value. Verizon’s vaunted customer service also declined significantly.

The highest ratings went to companies many never heard of:

• Consumer Cellular: This company resells AT&T service. The disparity between this top-rated, no contract provider and AT&T demonstrates that a bad customer experience with AT&T’s high prices and poor customer service can topple your ratings across the board. Consumer Cellular will face the same growing pains AT&T’s customers do in congested cities, but their customers seem to tolerate them better;
• U.S. Cellular: Top rated last year, this regional carrier provides service in the Pacific Northwest, Midwest, parts of the East and New England. The carrier, like the southern U.S. provider C-Spire, would probably have been acquired by one of the top-four carriers if the Justice Department seemed willing to accept further market consolidation. Its customers benefit from the company’s independence.
• Credo Mobile: Resells the Sprint network, but delivers superior customer service, which boosts its overall ratings. Formerly known as Working Assets, this progressive organization also enjoys loyalty because customers approve of the political and social causes with which it affiliates.

Overall, the magazine increasingly recommends consumers investigate no-contract or prepaid service plans before signing an expensive 2-year contract with the major four carriers. Pricing changes in 2012 have caused many subscribers to see bills rise, even as perks and benefits continue to erode. Device activation fees, upgrade fees, limits on early upgrades, restricted data plans, and all-or-nothing offerings that deliver (and charge) for features many consumers don’t use much have all reduced the value of contract service.

What keeps most customers coming back to another two-year contract is the chance to grab the hottest new smartphone at a discount. But consumers ultimately pay back whatever they have saved in higher fees over the life of the contract, which may make buying your own device at full price a better value with a no-contract plan.

Wall Street pans AT&T’s plans to spend billions to upgrade and expand its U-verse service.

Wall Street credit ratings agencies are unhappy with AT&T’s plans to increase spending on its broadband network to upgrade U-verse speeds and provide the fiber to the neighborhood service to more customers.

First, Moody’s placed AT&T’s “ratings on review for downgrade,” because AT&T’s plan to spend $22 billion to upgrade service and repurchase its own shares would throw AT&T’s debt level too high. Now Fitch Ratings has gone further, telling clients it has “downgraded” AT&T with a “negative outlook” because the phone company will spend money to provide U-verse to customers not profitable quickly enough to make the spending worthwhile.

Several Wall Street firms question the return on investment providing Internet service in rural areas where capital costs are higher. But many investment analysts are more positive about AT&T’s wireless service, which delivers substantial profits in much shorter time periods. Fitch called AT&T’s investments in LTE 4G service positive and important as Verizon Wireless continues to build and expand its own 4G LTE network.

With Verizon Wireless poised to launch 4G LTE service in Alaska for the first time, Alaska Communications (ACS) and AT&T are hurrying wireless broadband expansions to protect their market turf. But Wall Street investors are unhappy, especially with ACS’ investments in its landline network and the recently announced suspension of its dividend payout. Some are now asking whether ACS’ lucrative wireless business should be up for sale, primed for a buyout by AT&T or Verizon Wireless.

Alaska Communications has soft launched its LTE 4G service in 10 cities: Anchorage, Fairbanks, Homer, Juneau, Kenai, Palmer, Seward, Soldotna, Wasilla and Whittier.

AT&T operates a mix of LTE and slower HSPA+ networks in Alaska and is expanding 4G service to Prudhoe Bay and Deadhorse for the benefit of short-term oil company employees working on the North Slope. But the company is also still expanding its existing 3G network along more remote Alaskan highways.

They are coming.

The investment frenzy is seen by many as a defensive maneuver to keep existing customers happy before Verizon Wireless arrives in Alaska sometime next year.

ACS and GCI, Alaska’s homegrown phone and cable companies now jointly operate their wireless operation together. AT&T is their principle competitor. But Verizon Wireless’ impending arrival in Alaska has shown it is no shrinking violet. There are persistent rumors Verizon is trying to acquire ACS’ wireless operations. Verizon has also announced partnerships with Copper Valley Telecom and Matanuska Telephone Association to potentially expand LTE service in those communities as well.

Investors hope ACS considers any Verizon offer carefully. Wireless is a revenue center for the landline phone company, which continues to see declines in home phone and business customers.

Since June, ACS lost just shy of 2,000 residential landlines and 753 business lines. The company still has 57,000 residential customers and 81,000 business customers.

ACS faces the same problems other phone companies do: network upgrades require significant investments, and investors question whether it will ultimately pay off. Many are also unhappy ACS suspended its dividend payout, refocusing $8 million on debt payments.