AT&T customers looking for better service need to put down those cellphones and turn off the computer and pick up a good book.  AT&T recommends Fed Up! Our Fight to Save America From Washington, written by Texas Gov. Rick Perry.

Perry’s book, which compares Social Security and FDR’s “New Deal” social programs with a Communist takeover is so popular with the Big Telecom, it purchased over 700 copies to hand out for free to state legislators, lobbyists and activists attending a conservative policy summit luncheon.  Oh, and the company paid for the lunch, too.  Total cost?  More than $13,000 — all ultimately paid for by AT&T’s customers.

AT&T made sure every guest had their own personal hardcover copy of the governor’s book, something that didn’t go unnoticed by former Texas Solicitor General Ted Cruz, who thanked AT&T from the microphone for paying for the books.

“Governor Perry has written a book – a book that all of us very kindly have been given by AT&T,” Cruz said. “Thank you, AT&T.”

AT&T’s gladhanding of conservative state politicians doesn’t come accidentally, reports the Dallas Morning News.  With hundreds of millions in revenue at stake, AT&T’s investment in the state’s Republican dominated legislature guarantees the company’s voice will be heard on important legislative matters.

AT&T has spent as much as $9.3 million to lobby Austin lawmakers and regulators, according to Texas Ethics Commission data. AT&T’s political action committee has donated $494,740 to Perry during his nine years in office, according to Texans for Public Justice.

The latter group told the newspaper AT&T doesn’t get into the book club business lightly.

“It does raise concerns. AT&T has a lot of business before the state of Texas and Texas regulators,” said Craig McDonald, director of Texans for Public Justice, a group that tracks money in politics. “They are generally the largest lobby in the state. They can reach out and touch every lawmaker simultaneously.”

Elected officials who write books routinely find some of their biggest sales come from lobbyists, who buy books in bulk and hand them out at public speaking engagements, or simply shove them into the nearest storage locker.  It’s not about the book, it’s about the access companies like AT&T gain from the goodwill earned from buying copies.

Perry does not profit directly from the book sales, but his political interests do.  Proceeds of the book sales go to the Texas Public Policy Foundation’s Center for Tenth Amendment Studies, a group dedicated to protecting corporate interests and “state’s rights.”

AT&T’s corporate interest is protected by the Policy Foundation’s opposition to Net Neutrality, but the group generally opposes broadband stimulus funding, some of which is likely to end up in AT&T’s pockets.

[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/Texas Public Policy Foundation Net Neutrality.flv[/flv]

The Texas Public Policy Foundation invited two Republican FCC commissioners — one current and one former — to bash Net Neutrality and broadband reforms before a stacked panel and audience of like-minded thinkers.  (1 hour, 50 minutes)

Media excitement about recent iterations of allegedly “4G” networks aside, no currently available wireless broadband service will replace the need for traditional wired broadband so long as providers limit consumption to 5GB (or less) per month.

As average consumption per household is now at least three times that level, wireless broadband customers will be faced with three choices:

1. Supplement a wireless broadband account with an unlimited, wired broadband service;
2. Be prepared to pay overlimit fees or purchase additional accounts or “usage packs;”
3. Reduce usage to remain within plan limits.

Sprint currently remains the largest carrier offering unlimited access to its 4G network, also sold independently under the Clearwire brand.  But as Clear subscribers found out, “unlimited” comes with “unlimited hassles” if Clear’s “intelligent network management” software catches you using it “too much.”  Speeds are quickly throttled downwards, well below even Sprint’s slower 3G network.

Many of Clear’s customers signed up in response to ads promising the 4G wireless service as a “home broadband replacement.”  Ditch your cable modem or DSL service for a wireless alternative!  Some salespeople even dared to suggest Clear was faster than cable or DSL.  Only for most it is not.

Every carrier has their own version of “4G” here or on the way, most of which can deliver better and faster service than the 3G alternative, but wireless providers are hellbent on ensuring customers never get used to the concept of truly unlimited service.

Glenn Britt, CEO of Time Warner Cable, admits the wired broadband industry erred when it got people used to all-you-can-use broadband.

“We made a mistake early on by not defining our business based on the consumption dimension,” Britt told investors back in 2009 when the company was contemplating its own metered usage trials.

4G networks can bring out the "data hog" in everyone if you actually take advantage of the faster speeds to stream multimedia.

Wireless providers are working hard not to repeat that mistake.

AT&T found usage caps anger customers, but got away with implementing a 2GB monthly wireless usage cap tied with the introduction of the wildly popular newest iPhone (and helped by grandfathering existing unlimited customers until their next phone upgrade.)

“If I had a baby in my hand and my iPhone and I had to drop one, I’d drop the baby,” laughed Dallas iPhone owner Luisa Benton.  But Benton’s love for her Apple phone does not extend to AT&T’s network, noting she has dropped calls and had poor reception in certain areas.

Many iPhone owners retain their cable or DSL broadband service because AT&T’s wireless usage cap limits what they can manage online, and the company’s network problems only adds insult to pocketbook injury.  With many locked into two year contracts, few are going to brave early termination fees to find an alternative.

As providers upgrade their networks, they are also upgrading their prices.  Verizon’s new LTE network, for example, carries a premium price tag for those wishing to use it.

Customers looking for a faster wireless experience will pay $50 for 5 GB or $80 for 10 GB of data on Verizon’s new network.  Run over those limits and an overlimit fee of $10 per gigabyte kicks in.

“People are never going to use wireless networks the way you see them on the commercials,” writes Stop the Cap! reader Jo-Anne in Seattle.  “They are always watching movies or TV shows — services you absolutely don’t want to risk at those prices.”

J0-Anne asked a Verizon representative if new 4G smartphones would be permitted to use unlimited data plans.

“‘Don’t bet on it,’ was the reply I got — Verizon may keep unlimited around for 3G network users only,” she said.

If true, Verizon will deliver overpriced, inadequate service for any customer looking to leave their home broadband account behind.  As soon as multimedia gets involved, usage caps rapidly become a dealbreaker.

Verizon recently contracted with Bridgewater Systems Corporation to supply it with data management software.  Bridgewater is also a major supplier of network throttling solutions to ferret out heavy users and impede their speed, as part of “fair use policy” regimes.

Some wireless companies are trying to have their cake and eat it too — selling “unlimited” wireless broadband service hampered by an aggressive “policy control” network management scheme.  You’ve seen the ads promising unlimited access, but probably missed the fine print warning the provider will throttle your wireless broadband speed to something comparable to dial-up once they deem you a data hog.

Cricket and Clear are both notorious for throttling customer speeds and delivering disclosures of the practice more impenetrable than North Korea.

A Clear blog entry tried to simplify the legalese:

During times of high network utilization our network management system may limit speeds, but we never limit the amount of data a customer with an unlimited data plan may use. The algorithm in place reviews several factors including long and short-term usage, current network capacity, and network demand to determine if network management needs to be applied.

The end result is that a few heavy users temporarily give up some speed during limited times of high demand so that everyone can have a good experience. A majority of customers are having a positive experience and experiencing faster speeds during times of greatest demand since these enhancements were enacted.

The “positive experience” Clear’s blogger reports may be wishful thinking, however, after reading the company’s support forums.  They’re overloaded with thousands of angry customers and probably many more ex-customers.  An “unlimited” broadband experience is meaningless if customers endure speeds well below the minimum acceptable definition of “broadband,” often for days on end.

Cricket is no better:

Cricket sets usage levels on the amount of data a customer can upload and download within stated periods of time. If you exceed your rate plan usage levels, Cricket will temporarily reduce the speed at which you can send and receive data over the Cricket network. You will still be able to use the service but your speed will be slower. Cricket may use other traffic management and prioritization tools to help ensure equitable access to the Cricket network for all customers. Your service speed is not guaranteed and is subject to this Fair Use Policy.

Cricket has set a data usage level (“Usage Level”) per customer. As shown in your rate plan brochure or on www.mycricket.com, this Usage Level varies based on the rate plan you’ve selected. Every day, we measure your upload and download data usage (“Actual Usage”) to determine if your total Actual Usage, as aggregated over your bill cycle (“Usage Total”), exceeds the Usage Level for the rate plan you selected. During hours of operation, you can inquire about your Usage Total versus your monthly Usage Level by calling 1-800-Cricket and speaking with a Care representative.

Once you begin a new bill cycle your rate plan Usage Level upload and download speeds will be restored.

The average Cricket customer is unlikely to grasp anything beyond the fact their speed sucks if they are targeted by Cricket’s throttle.  It’s not as simple as breaking through your monthly usage allowance.  Cricket can and does throttle customers who seem like they could exceed the limit, based on their daily account activity.

In the end, most wireless customers pay more for less service.  The primary benefit is portability, and carriers consider that worth the premium prices charged.  But as the Internet’s love affair with all things multimedia continues, none of these providers will provide a suitable alternative to the traditional home-wired broadband account.

[flv width=”432″ height=”260″]http://www.phillipdampier.com/video/WFAA Dallas iPhone Frustration 11-30-09.mp4[/flv]

Last year like this year, WFAA-TV in Dallas reports frustrations continue with AT&T’s wireless data network.  The company’s response?  Limit customers’ use of it and push more of them off to Wi-Fi alternatives.  (2 minutes)

Just in time for New Year’s Eve, AT&T is pushing revelers off its 3G network onto a newly expanded Wi-Fi hotzone that encompasses Times Square.

It’s all part of AT&T’s plans to improve connectivity for smartphone customers enduring the company’s overburdened 3G network.  A year ago, it could take 10 minutes or more for an AT&T smartphone user in a crowd to bring up a single web page.  That’s because too many other AT&T customers were trying to do the same thing at the same time.

In Times Square, where an estimated one million people are expected to ring in the new year, it’s a safe bet more than 200,000 AT&T customers will try and upload photos and send New Year greetings to friends and family back home.  They’ll have a better chance of success using AT&T’s Wi-Fi.

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/ATT Expands Wi-Fi Hotzones Connections in United States 12-28-10.flv[/flv]

An AT&T social media representative introduces the new hotzone in Times Square.  (1 minute)

AT&T has been installing hotzones, accessible by their customers, in large gathering spots in cities like New York, Chicago, and San Francisco to address complaints from customers about network congestion.

“Our initial AT&T Wi-Fi hotzones have received great customer response and supported high data traffic,” says John Donovan, AT&T’s chief technology officer. “The pilot demonstrated the clear benefits of having fast and readily-available Wi-Fi options for our customers and our network, and so we have decided to deploy hotzones in more locations.”

AT&T’s outdoor hotzones typically deliver a signal across several city blocks and are intended for those on the go.  They join more than 20,000 indoor Wi-Fi hotspots already accessible to AT&T customers.

A strong Wi-Fi signal means reduced battery consumption and faster speeds.  And unlike AT&T’s 3G network, using Wi-Fi won’t eat into your monthly usage allowance, a major issue for those facing AT&T’s Internet Overcharging scheme on the wireless side, which delivers only 2GB of service per month before overlimit fees kick in.

But Wi-Fi alone cannot work miracles, and AT&T has no idea whether the hotzone in Times Square will have enough capacity to meet customer needs.  But the company is satisfied that it will certainly help, which is why it plans to continue installing the outdoor networks in other high volume areas.

Verizon Wireless already operates its own Wi-Fi network in Times Square for many of the same reasons.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/ATT Wi-Fi.flv[/flv]

AT&T explains how to use their Wi-Fi network.  (5 minutes)

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/Bloomberg Oppenheimer Declares Net Neutrality A Victory for Consumers 12-21-10.flv[/flv]

Wall Street continues to consider Monday’s lukewarm Net Neutrality regulations to be a victory for AT&T and other providers.  Bloomberg News asked Tim Horan, an analyst at Oppenheimer & Co., whether the impact of Net Neutrality would be higher prices for consumers.  “Uhhh,” began the stumbling reply.  Watch as Oppenheimer tries to get back on board with provider-generated talking points, eventually declaring the almost non-existent protections “a victory for consumers.”  Do you think he really believes that?  (3 minutes)

FCC Chairman Julius Genachowski sold President Obama's campaign pledge, his credibility, and you down the river in a sweetheart deal with Big Telecom.

The Federal Communications Commission voted today to pass what Chairman Julius Genachowski called “Net Neutrality” — reforms that will guarantee a free and open Internet.  But critics charge any similarity to actual Net Neutrality is purely coincidental.

In a 3-2 vote along party lines, the Democratic Commissioners approved Genachowski’s framework to keep providers from blocking access to websites.

Genachowski claims the rules will protect consumers from providers controlling the free flow of online content and will provide regulatory certainty for the broadband marketplace.  Providers, who have either lined up behind the chairman or have muted their criticism of the proposal in recent days, suggest they weren’t about to censor Internet content in the first place and that Net Neutrality is a cause in search of a problem.

Public interest groups were less than satisfied, dismissing today’s proceedings as “Net Neutrality-lite,” or “Net Neutrality with more (loop)holes than Swiss cheese.”  In particular, Genachowski’s willingness to exempt wireless broadband from the rules was a very sore spot among Net Neutrality proponents and some in Congress.

“Maybe you like Google Maps. Well, tough,” said Sen. Al Franken (D-Minn.) “If the FCC passes this weak rule, Verizon will be able to cut off access to the Google Maps app on your phone and force you to use their own mapping program, Verizon Navigator, even if it is not as good. And even if they charge money, when Google Maps is free.”

Franken is convinced excluding wireless networks from open Internet rules is the first step towards a free speech calamity.

“If corporations are allowed to prioritize content on the Internet, or they are allowed to block applications you access on your iPhone, there is nothing to prevent those same corporations from censoring political speech.”

Craig Aaron, managing director at Free Press bemoaned today’s vote over rules he suggests were written by the industry itself.

“These rules don’t do enough to stop the phone and cable companies from dividing the Internet into fast and slow lanes, and they fail to protect wireless users from discrimination. No longer can you get to the same Internet via your mobile device as you can via your laptop,” Aaron said. “The rules pave the way for AT&T to block your access to third-party applications and to require you to use its own preferred applications.”

The Obama Administration is likely to claim credit for the new rules and declare Net Neutrality a campaign promise fulfilled, a claim that makes several net activists’ blood boil.

“Chairman Genachowski ignored President Obama’s promise to the American people to take a ‘back seat to no one’ on Net Neutrality,” says Aaron. “He ignored the 2 million voices who petitioned for real Net Neutrality and the hundreds who came to public hearings across the country to ask him to protect the open Internet. And he ignored policymakers who urged him to protect consumers and maintain the Internet as a platform for innovation. It’s unfortunate that the only voices he chose to listen to were those coming from the very industry he’s charged with overseeing.”

Aneesh Chopra, Obama’s chief technology officer said on Dec. 1 that the FCC proposal was an “important step in preventing abuses and continuing to advance the Internet as an engine of productivity growth and innovation.”

Genachowski’s two fellow Democratic commissioners agreed, noting the policies probably don’t go far enough, but it’s a start and they wouldn’t oppose them.  But Commissioner Michael Copps made it clear he remains unhappy with how the entire debate was managed.  He fears corporate control of broadband content will bring the same mediocrity large corporations have managed to deliver Americans over radio and television.

“I don’t want the Internet to travel down the same road of special interest consolidation and gate-keeper control that other media and telecommunications industries — radio, television, film and cable — have traveled,” Copps said. “What an historic tragedy it would be,” he said, “to let that fate befall the dynamism of the Internet.”

If today’s mild net reforms are a step forward, it’s a small one say critics like the Center for Media Justice.  They suggest the FCC’s idea of Net Neutrality offers “minimal protections” for consumers.

“Our greatest fears have been realized,” said Malkia Cyril, Executive Director of the Center for Media Justice. “The Internet can only work if it’s a truly level playing field. Telecommunications companies have used their considerable wealth and lobbying might to exclude some of the most vulnerable communities from the only protection there is from their corporate abuses. These rules aren’t fair, and they don’t provide a path to equity or opportunity. We’re deeply concerned that today’s vote sends a clear message to our communities that if you access the Internet through your cell phone, you don’t count. The FCC has sadly shirked its responsibility to protect all Internet users equally.”

All of the debate may ultimately mean nothing should one of the providers decide to challenge the new rules in court.  The Commission failed to address an earlier court decision that ruled the Commission’s regulatory framework was based on nothing more than good intentions.  The agency was toying with the idea of reasserting authority over broadband using a different framework, but providers furiously lobbied against that, claiming it would “regulate the Internet” under rules designed for landlines.  The Commission’s decision to proceed under a foundation condemned by an earlier federal court ruling exposes an obvious weak spot providers could attack in additional lawsuits.

“We know these rules will be hotly contested,” said Betty Yu, MAG-Net Coordinator. “As they roll out, grassroots communities will continue to monitor the process, ensuring that the rights of wireless users are protected from the over reach and abuses of AT&T, Verizon, Comcast and other telecommunications companies. These rules are a compromise- unfortunately, what was lost in the deal are the rights of wireless users.”

Verizon may make things easier for Yu and other consumer groups to clear the playing field and start over again.  The company released a statement today that foreshadows a willingness to challenge the agency’s Net Neutrality rulemaking in court (underlining ours):

“While it will take some time for us to analyze the F.C.C.’s rules and the order once they are released, the F.C.C.’s decision apparently reaches far beyond the net neutrality rules it announced today,” the company said in a statement. “Based on today’s announcement, the FCC appears to assert broad authority for sweeping new regulation of broadband wireline and wireless networks and the Internet itself. This assertion of authority without solid statutory underpinnings will yield continued uncertainty for industry, innovators, and investors. In the long run, that is harmful to consumers and the nation.”

Net Neutrality Order Snippets

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The Federal Communications Commission’s Open Meeting introducing Net Neutrality and includes a vote on the rulemaking.  (2 hours, 42 minutes)