AT&T has been mailing letters to customers caught tethering without the benefit of an add-on plan that if they don’t stop, they will be automatically enrolled in a $45 tethering-data plan this Saturday.  But Stop the Cap! has learned some tethering customers have already been scheduled for enrollment in the pricey plan, even though they abandoned the use of the tethering application that got their account flagged.

The warning letter, dated May 31st, gave Stop the Cap! reader “K” less than 10 days to notify AT&T they are not authorized to make any plan changes without our reader’s explicit consent.  When “K” called AT&T, the company explained the account had been flagged for the ‘tethering violation’ and was scheduled to be enrolled in the $45 DataPro 4GB for Smartphone Tethering data plan this Saturday.

“K” is not the only reader discovering AT&T has plans to change their account this weekend, resulting in dramatically higher bills.

Kai from San Francisco noted he started receiving text warning messages about tethering starting last month, discontinued use of the app that allowed him to avoid paying AT&T’s tethering prices, and still received AT&T’s letter and further text message warnings anyway.  He says it is a good thing he called AT&T.

“I didn’t believe AT&T’s claim that I would not be auto-enrolled in this tether plan if I stopped the tethering, especially after receiving their letter,” Kai writes.  “Sure enough, AT&T had already scheduled my enrollment, which I was able to stop by calling them.”

AT&T is quoting some callers portions of their terms and conditions:

The company has also told some callers complaining about the tethering crackdown that use of third party applications to tether without payment to AT&T already represents a breach of the customer agreement, so waiving an early termination fee may not be an option.

Stop the Cap! recommends consumers who have received text warning messages from AT&T about unauthorized tethering call AT&T and explicitly opt out of any data plan changes scheduled by the company.  This is particularly important for customers grandfathered in AT&T’s unlimited smartphone data plan, because once forfeited (even by AT&T’s own actions), the company has declared you cannot get it back.

See the entire letter from AT&T below the jump.

… Continue Reading

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Bloomberg News covers Sprint’s increasingly aggressive pushback against the merger of AT&T and T-Mobile.  But while Bloomberg points out consumer groups are using websites to help consumers file comments opposing the deal, they ignore the fact deal supporters are engaged in their own dollar-a-holler campaign to win the merger’s approval.  (2 minutes)

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The opposition to the merger of AT&T and T-Mobile is growing louder and more organized as smaller carriers join Sprint’s opposition efforts. Consumer groups roundly dismiss the proposed merger as anti-competition and anti-consumer.  Michael Nelson, a securities analyst, tells Bloomberg News the vote for the merger’s approval could be close and the company will probably have to agree to more concessions than it thinks.  But considering AT&T’s enormous lobbying power, Nelson still thinks the deal will squeak through.  Nelson, however, warns the merger will bring about a considerable reduction in the disruptive pricing T-Mobile has engaged in — pricing that benefits consumers and forces larger carriers to follow suit.  To Nelson, eliminating an aggressive competitor like T-Mobile will bring about what he calls “a rational competitive environment.”  That means higher prices, no surprises, and a stagnant marketplace.  Wall Street understands the implications of this deal, all while knowingly winking at AT&T’s marketing/lobbying machine that claims reduced competition = better service.  (4 minutes)

Gov. Purdue: I Was for More Competition Before I Was Against It

Democratic Gov. Bev Purdue from North Carolina has managed to twist her logic into quite a pretzel over two statements from her office in the past two weeks.  On the community broadband front, Purdue protested legislation to reduce competitive choices in broadband in her state (all underlining ours):

May 20, 2011:

“My concern with House Bill 129 is that the restrictions the General Assembly has imposed on cities and towns who want to offer broadband services may have the effect of decreasing the number of choices available to their citizens. For these reasons, I will neither sign nor veto this bill. Instead, I call on the General Assembly to revisit this issue and adopt rules that not only promote fairness but also allow for the greatest number of high quality and affordable broadband options for consumers.”

Just 11 days later, Purdue inferred the exact opposite in her letter of support for the merger of AT&T and T-Mobile, which will reduce most of North Carolina to choosing among AT&T, Verizon, and in some cases Sprint.  One of her reasons?  The city of Raleigh is getting a new area code:

May 31, 2011:

The proposed merger of AT&T and T-Mobile presents another development in the marketplace which can benefit the people of my state.

The communications market in North Carolina, particularly in the wireless arena, is dynamic. Recently, the NC Utilities Commission announced the Raleigh area will soon implement a new area code, the eighth in the state, due primarily to the tremendous growth in wireless service.

In North Carolina we are committed to stimulating investments in advanced technology, and encourage quality service for the public. We look forward to working closely with AT&T to foster these important goals.

On behalf of the people of North Carolina, I appreciate your strong consideration in favor of the proposed merger of AT&T and T-Mobile.

Allow AT&T and T-Mobile to merge because Raleigh needs a new area code, proving wireless growth.  That may account among the most novel of all reasons to support a merger that will further reduce competition in the wireless market.

Wading through the bulging file of comments at the Federal Communications Commission website reveals some strange and unusual testimonials from groups one would think would have much better things to do with their time and resources than advocate for a multi-billion dollar super merger between AT&T and T-Mobile.  But integrity means little next to a big fat check from AT&T, and many so-called “charities” really do believe it begins at home in their own bank accounts.  So with their hands out, groups like Wisconsin Coalition for Consumer Choice and the Urban League, and politicians like Bobby Jindal become dollar-a-holler advocates for AT&T’s agenda, offering the flimsiest reasons around to push for the merger’s approval.

Among the least savory are groups purporting to represent income-challenged minority communities who advocate for a merger that will promote higher prices for less service.  Such advocacy would taint any group and calls into question whether contributions are really helping those in need or just those who claim to represent them.

As we suspected, after reviewing dozens of submissions favoring the merger, virtually every last supporter either had direct financial ties to AT&T, had AT&T personnel in leadership positions, or were run by Washington, DC lobbying firms that have a past history of doing work on behalf of AT&T.  Ordinary consumers, and there were thousands, submitted comments opposing the merger — citing reduced competition, higher prices, fewer choices, and offering few benefits or improved service.  At least some live in the reality-based community, not AT&T’s field of overpriced dreams and broken promises.

A Sampling:

Klaetsch: The Coalition of One Lobbyist

Wisconsin Coalition for Consumer Choice

Here’s a “group” purporting to represent the interests of consumers, but they’re nowhere to be found.  George Klaetsch, executive director, claims AT&T’s merger will “immediately increase consumer choices and access to quality broadband and mobile services. Thousands of new cell sites will become available, the nation’s broadband footprint will be significantly expanded, and most importantly, more than 46 million more customers will gain instant access to 4G LTE technology – many of them right here in Wisconsin.”

Why if you approve this merger, there will be free candy for everyone, too.

The group’s website offers an unwelcome introduction with a series of technical faults, perhaps a testament to how few consumers ever bother to visit it, and carries an earnest disclaimer:

[…] We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.

Good to know.

Klaetsch’s letter forgets to mention he’s a registered lobbyist for Public Affairs Strategies, Inc.  When he’s not fronting AT&T’s agenda, he also represents the interests of AstraZeneca Pharmaceuticals, the Elevator Industry Work Preservation Fund, and the creepy-sounding Funeral Service & Cremation Alliance of Wisconsin, among other groups.

Wellington Area Chamber of Commerce

This well-meaning local chapter of the Chamber, who counts AT&T as a member, has fallen hook, line, and sinker for AT&T’s promise to deliver 4G service to “97 percent of the country,” assuming the merger gets approved.  Of course, AT&T will upgrade to 4G with or without the merger, and this particular Chamber’s executive director apparently does not realize T-Mobile’s contribution to improving service in rural America is less than robust.  When an active member of a civic or business group happens to be AT&T, getting a letter written on behalf of the company’s agenda comes as soon as the talking points can be handed out at the next Chamber meeting.

Unfortunately for the people of Wellington, losing one more competitor guarantees rural America fewer competitive choices, higher prices, and less service, not more.

United Way of Northwest Florida

AT&T Donates $9,000 to the United Way of Northwest Florida, which promptly returns the favor with a nice letter to the FCC supporting the telecom company's agenda.

Some residents in northwest Florida could reconsider their future contributions to “charitable groups” who increasingly spend their time and attention involving themselves in big corporate mergers, meeting the needs of some of their biggest donors.  No better example of this comes from the United Way of Northwest Florida, who accepted a $9,000 contribution from AT&T in one hand, while banging out this letter of support for AT&T’s merger with the other.  It’s classic dollar-a-holler advocacy.

While this chapter believes the interests of cell phone users will be best served by an AT&T – T-Mobile merger, we’re wondering what actual charitable endeavors go unserved while its leadership wastes time and resources filing comments with the FCC on a billion dollar telecom deal.

Urban League of New Orleans

This chapter of the Urban League “firmly believes that the greater New Orleans area we serve would greatly benefit by added broadband connectivity. Studies show that the underserved, urban communities with the greatest access to broadband Internet see the strongest economic growth. With high-speed Internet, residents can more easily access important resources online, from educational resources for schools to job opportunities for those who are out of work or seeking to update their skills. High-speed Internet enables greater connectivity between all stakeholders, more able to respond effectively and efficiently to the needs of our city.”

Somehow, for those noble reasons, they are supporting AT&T’s and T-Mobile’s merger.  AT&T is the company that pitches some of the most expensive and most limited wireless broadband plans in the country.  How this benefits urban New Orleans may escape you.

What didn’t escape us was the fact AT&T Louisiana president Sonia Perez is the group’s 2011 Annual Gala Chairperson.  She’s also a participant on the group’s governing board.

In addition to the big oil, chemical, credit card, and health insurance companies sponsoring Jindal's wife's charity is none other than AT&T.

Gov. Bobby Jindal of Louisiana

Gov. Jindal is a big supporter of AT&T’s merger with T-Mobile.  The Washington Post notes he is joined by 13 other governors writing the FCC to push for approval.  Jindal is honoring Louisiana’s time-tested notoriety for questionable political dealings.  Perhaps it is just a coincidence his wife runs the Supriya Jindal Foundation, who counts among its key sponsors… you guessed it, AT&T.  Before one assumes Jindal has a legitimate interest promoting AT&T, which invests money in Louisiana, consider this: Jindal has written only one letter to the FCC on a telecommunications issue since the agency’s electronic filing system was inaugurated in 1992. This one.  Maybe he was busy on those other days.  Then again, maybe he wasn’t.

Jindal closes his letter with these words: “I am confident that this merger will benefit the people of Louisiana.”  That’s true, if you define “people” as his immediate family and the corporate executives of AT&T and T-Mobile who work and live in his state.  Everyone else doesn’t matter.

United States Hispanic Leadership Institute

USHLI does AT&T the honor of penning letters supporting the phone company's agenda.

After reviewing dozens of submissions from charities and non-profit groups, the comments from USHLI really stood out above the others.  Dr. Juan Andrade, president of the group is a downright feisty guy, singing paragraphs of praise for AT&T as a “model corporate citizen”:

“Like you, I too have heard that the merger will have a devastating impact on consumers, promote anti-competitive behavior, and result in higher prices; that the merger will be bad for business, bad for innovation and bad for workers. We’ve heard this all before – when SBC was acquiring Ameritech, when AT&T was merging with SBC, and so forth. And what have we seen? We’ve seen just the opposite. The Federal Communications Commission’s own data show that these concerns proved unfounded as consumers benefited from tremendous innovation and competition in the wireless space, all while seeing wireless voice and data prices drop. This “sky is falling” attitude is replaying itself as AT&T seeks approval to merge with T-Mobile. But the facts speak for themselves. The United States Hispanic Leadership Institute (USHLI) believes the Federal Communications Commission should rise above the skepticism, above the unsubstantiated claims, and above the impractical requisitions.”

What the FCC also needs to rise above is the considerable support Dr. Andrade’s group gets from AT&T.  Undisclosed in Andrade’s spirited defense of one of the worst mergers in telecommunications history is the fact AT&T is the “honorary co-chair” and sponsor of the group’s 2011 fundraising efforts.  It’s the public policy equivalent of “My Dinner With AT&T.”  More wine?

Andrade conveniently ignores the fact AT&T is raising prices on wireless data products with punitive usage caps and overlimit fees.  It’s not the sky falling, Dr. Andrade, it’s your credibility to speak as an independent observer while also enjoying AT&T’s largesse.  When you engage in dollar-a-holler advocacy, American consumers have more than a right to be skeptical.

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A new consumer investigation by NBC’s Today Show found that AT&T may be systematically overcharging customers for their broadband usage, fleecing customers for countless sums in overlimit fees.  With no government oversight to guarantee usage measurements are accurate and fairly measure usage, customers have to take AT&T’s “word” for the accuracy of their billing, and now that the company has extended Internet Overcharging to its DSL and U-verse customers, AT&T could earn millions in ill-gotten gains if the claims of overestimated usage are true.  AT&T responded, claiming consumers have a misunderstanding of how data is consumed and billed.  NBC quotes AT&T as saying most customers who exceed their limits do not incur fees, which will come as quite a surprise to customers who are routinely billed $15 or more for excessive use charges on wireless plans.  Thanks to Stop the Cap! reader Scott for sharing the news.  (4 minutes)