AT&T customers are getting no bars in more places in the state of Connecticut as the wireless company deals with 150-200 cell towers that are either without power or were damaged by a weekend storm that brought more than 20 inches of snow to some parts of New England.  But some customers are questioning why AT&T has suffered damage to their cell tower network while other carriers report no significant damage at all.

“As of Wednesday afternoon, we still have no AT&T wireless service and it takes miles of driving to find a cell tower that is still working,” reports Sam, a Stop the Cap! reader outside of Hartford.  “My friends’ Verizon Wireless and Sprint phones work as if the storm never happened. In fact, I can’t find any Verizon customer who is impacted by the storm, but that’s sure not true with AT&T.”

On Sunday, Connecticut Gov. Dannel P. Malloy noted AT&T told state officials that 152 cell towers had been damaged by the storm and that cell phone service would likely be disrupted in some portions of the state for some time to come.  But Verizon Wireless reports outside of some power outages, they sustained absolutely no damage to any of their towers and backup generators are expected to provide uninterrupted service even in areas where extended power outages are occurring.  A Verizon spokesman reported at least 93 percent of its network was operating as of Tuesday, with most of the sporadic outages due to backup batteries depleting their stored energy before technicians arrive to fire up backup generators.

Sprint also reports only minor interruptions to its service in Connecticut, mostly due to power failures.

In most cases, extended power interruptions are responsible for cell tower service failure.  When power is restored, cell service generally is as well.  But this outage proved more extensive because AT&T’s backhaul network between towers and their own facilities was also damaged by falling tree limbs and power poles.

Residents tell the Hartford Courant AT&T has made some progress as the week wears on, with slowly improving service as towers are brought back online.

“We continue to make progress in restoring service to our customers in the wake of the recent snowstorm,” Kate McKinnon, AT&T spokeswoman for the northeast region told the newspaper. “We have deployed generators and crews across the storm-impacted areas and are working around the clock to address service issues. We also continue to work with local Connecticut utility companies as they restore commercial power to affected cell sites and facilities.”

Power utility companies have first priority in service restoration. Connecticut Light & Power reports 77 percent of their customers lost power during the snowstorm.  As of this afternoon, at least 544,000 are still waiting for power to be restored.

Gone for new customers

AT&T has stopped allowing new customers to sign up for its “A-List” feature, which allowed AT&T Wireless customers on individual service plans to make unlimited calls to up to five mobile or landline numbers; Family Plan members were able to pre-select up to 10 numbers.  It’s particularly bad news for users of Google Voice, who added their Google-assigned phone number to their calling list to make unlimited Google Voice calls over their AT&T phones.

For now, existing A-List customers can keep the feature as long as they stick with the same rate plan, but AT&T warns it reserves the right to discontinue it at any time.

Engadget received a leaked memo regarding the change, which AT&T sprung on customers with no warning earlier today.

AT&T says A-List is a feature whose time has come and gone.  In its place, the company is allowing free mobile-to-mobile calling, according to an official company statement:

With automatic addition at no-cost of AT&T’s Mobile to Any Mobile offer for our wireless customers with an unlimited messaging plan, AT&T A-List is being discontinued for new users. Existing A-List users are not affected. We have seen a very enthusiastic response to the value of Mobile to Any Mobile which lets users with an unlimited messaging plan call any mobile number in America, regardless of the wireless provider.

While AT&T’s mobile calling feature is unique because it works with any mobile customer using any provider, the loss of A-List means numerous calls to landline numbers (including Google Voice numbers) could burn through your plan minutes much faster.  AT&T probably pays a higher connection fee to complete calls to landline numbers, especially in rural areas where connection charges are higher.

Ironically, competition from T-Mobile’s myFaves feature helped inspire AT&T to match the competition with the launch of A-List.  It is this kind of innovative, disruptive marketing that benefits every mobile customer, as competing carriers are forced to match features offered by other carriers.

In the last month, AT&T has been paring back customer-friendly value options such as its discounted, light user text plan.

Thanks to Stop the Cap! reader Scott, who notes: “Again, the merger isn’t even through or likely and AT&T is still slashing consumer friendly and money saving features put in place to fend off the competition.”

Verizon Wireless is expected to enter the Alaskan mobile market sometime in 2013-2014, according to incumbent competitors, who expect Verizon’s largest impact will be to bleed AT&T of customers.

Alaska’s two primary local providers — Alaska Communications, Inc. (ACS) and General Communications, Inc. (GCI), are telling shareholders to relax because they don’t expect to see Big Red in the Alaskan market for at least 2-3 years.  Both companies reported net losses for the quarter, and GCI lost 2,400 subscribers recently when more than 4,000 soldiers at Fort Wainwright in Fairbanks were deployed to Afghanistan.

Both ACS and GCI have been using the current poor economic climate and their respective stockpiles of cash-on-hand to retire debt or reissue long-term-debt at more favorable low interest rates.  Both companies are also hurrying to outdo each other’s 4G wireless network deployments before Verizon Wireless shows up, making use of spectrum it acquired last August to enter the Alaskan market.  Government rules require Verizon to sign-on its new network by June 13, 2013.  But Verizon admits it will take up to five years after that to completely build a new network from scratch.

Right now, Verizon Wireless customers taking their phones to Alaska roam on ACS’ network, for which the company is compensated with an increasing amount of extra revenue.  ACS boosted earnings in part on that roaming revenue, even as it lost more of its own customers.  When Verizon switches on its own network, that roaming revenue will rapidly decline, but ACS executives reassured shareholders their knowledge and experience of construction seasons in Alaska guarantee Verizon won’t be able to get its network together until 2013 at the earliest.

But when Verizon opens their doors, Ron Duncan, CEO of GCI expects a hard fight on his hands.

“We recognize ultimately they’ll be a significant competitor, although I see AT&T share more at risk because Verizon’s main claim to fame when they get to Alaska is going to be devices. We’ll still outpace them on coverage. We’ll continue to be the only ones with statewide coverage,” Duncan said. “People who want to buy the coverage buy from us today; people who want devices buy from AT&T because AT&T gets much better devices than we do.”

Just months after Verizon announced they were headed north, both ACS and GCI accelerated plans to roll out respective “4G” networks for wireless customers, although each company is deploying different standards.

GCI

GCI’s cell phone network is a combination of some of its own infrastructure, the acquisition of Alaska Digitel, and a resale agreement to use parts of AT&T Wireless’ coverage it acquired from Dobson Communications Systems.  In and around Fairbanks, Anchorage, Glennallen, Valdez, Prudhoe Bay, Wasilla, and Kenai, GCI offers CDMA service.  In those communities and many other rural regions in western Alaska, GCI relies on AT&T Alascom GSM networks.  GCI pitches its CDMA network’s 3G wireless data capabilities, which offer faster wireless data speeds, if you can get coverage.  For wider coverage in Alaska’s smaller communities, GCI markets GSM phones, which currently only offer 2G EDGE/GPRS data speeds.  If you use a cell phone mostly for voice calls, the wider coverage afforded by GCI’s GSM network is a popular choice.  But if you want faster data, CDMA 3G data speeds are required.

Eventually, GCI’s 4G network may help deliver coverage and faster speeds in both urban and rural areas, particularly as GCI plans to invest up to $100 million to construct more of its own network, instead of relying on resale agreements and acquisitions.

GCI has chosen HSPA+ for 4G service on the GSM network, and will introduce the service in Anchorage later this month.  That’s the same standard used by AT&T and T-Mobile in some areas.  It’s not as fast as LTE service from Verizon Wireless, but is much cheaper to deploy because cell sites need not be linked with fiber optic cables — an expensive proposition.

ACS

Alaska Communications has a large 3G CDMA network in Alaska all its own.  Its coverage is primarily in eastern Alaska adjacent to major cities like Anchorage, Juneau, and Fairbanks, and where it does provide 3G data coverage, the company claims it extends further out than GCI.  ACS doesn’t offer much coverage in small villages and communities in western Alaska, however.

ACS expects to skip incremental upgrades and launch its own 4G LTE service in the future.  It may help the company regain its second place standing, lost to GCI last year, and protect it from Verizon Wireless poaching its customers.

AT&T: Suing its own customers

AT&T has filed suit against at least eight of their wireless customers who are opposed to the company’s attempts to buy T-Mobile.

The lawsuits, filed in federal court, include a request for an injunction against what AT&T calls abuse of the court with “meritless” arbitration claims being filed as a class action lawsuit.

Stop the Cap! earlier covered the efforts by law firm Bursor & Fisher to seek an end to the merger between AT&T and T-Mobile, and payments of up to $10,000 in damages per customer if the merger goes through.

Now AT&T is pushing back.

Bursor and Fisher’s legal theory is that customers can use the arbitration provisions found in AT&T’s terms and conditions to seek relief against the company for what attorney Scott Bursor suggests will be a future of higher wireless prices for AT&T Wireless customers.

AT&T’s suit seeks to dispel that legal theory:

“Defendant is among the 1,000 (and counting) ATTM [AT&T Mobility] customers whom the law firm of Bursor & Fisher P.A. (‘Bursor’) has solicited and now claims to have recruited as part of a scheme to pressure ATTM into settling meritless claims.”

“Bursor and Faruqi’s [another attorney partnering with Bursor & Fisher’s lawsuit] scheme plainly violates the arbitration agreement between ATTM and defendant. Among other limitations on the scope of arbitration, the agreement expressly precludes ‘any form of representative or class proceeding’ and permits claims for injunctive relief ‘only in favor of the individual party seeking relief and only to the extent necessary to provide relief warranted by that party’s individual claim.'”

Bursor

AT&T may have gotten serious after losing an appeal to the American Arbitration Association to block administration of the cases.  In a rare move, the Association overrode AT&T’s objection and started processing cases last week.  Arbitration has never been considered consumer-friendly, because the arbitration industry is heavily dependent on businesses and their arbitration agreements to survive.

AT&T’s general counsel stated the arbitration actions will “place a $39 billion merger in jeopardy.”

Bursor and Fisher appeared to be unintimidated by AT&T and suggested a wireless company willing to sue its own customers is “desperate.”

“AT&T now realizes it faces a substantial likelihood that one or more of these arbitration [cases] will indeed stop the takeover from happening,” Bursor said. “But AT&T’s legal arguments are frivolous. We expect the courts will reject AT&T’s arguments and dismiss these cases very quickly.”