Shocked onlookers moments after the earthquake struck downtown Christchurch

A major magnitude 6.3 earthquake has devastated the Canterbury region of southeast New Zealand, particularly the central business district of the city of Christchurch, knocking out power, water, sewer, and several telecommunications networks across the region.  The wireless networks that remain have been so overburdened, government officials have declared use of those networks limited to emergency use only.

Two aftershocks — one magnitude 5.6 and another 5.5 — shook Christchurch within hours of the initial 6.3 earthquake, causing damaged buildings to crumble, including parts of the 130-year-old Christchurch Cathedral. Its spire toppled into the city square, falling onto throngs of tourists who ran from the building in terror as the temblor struck.

Dozens are dead, with scores more injured, particularly in the Christchurch city center, where the quake struck just after lunch.  Shocking raw video has appeared on national television showing bloody bodies strewn amongst the rubble, and hearts are broken over stories such as the death of nine month old toddler who survived the quake, but not the large flat panel television that toppled down on him during an aftershock.

Telecommunications services were reduced to a state of virtual unusability following the quake because of cable cuts and congestion, as Prime Minister John Key informed Parliament the government was forced to initially rely on a sketchy satellite link to speak with civil defense officials in the city of 376,000.

The city’s local television station — CTV, was reduced to rubble as the seven-story building pancaked, tossing some employees working on the fifth floor into the middle of Madras Street below.  They were the lucky ones, surviving as astonished onlookers ran up to help.

National media has described the Canterbury earthquake as “New Zealand’s darkest day,” and most radio and television stations still on the air have ceased regular programming to relay the country’s National service from Radio/TV New Zealand, or the country’s national news-talk network Newstalk ZB.

New Zealand’s Internet services are functioning, but sporadic in many locations.  The national public broadcaster, Radio/TV New Zealand, is relying on its international shortwave radio service Radio New Zealand International to get its signal out to the rest of the world as its live Internet streams initially failed.  Many other broadcasters in Christchurch have lost their links to transmitters, or temporarily lacked power to stay on the air.

The region’s landline telephone network remains functional where cable cuts have not interrupted service, but since many New Zealanders rely on cell phones, the country’s wireless networks quickly were overwhelmed with worried callers.  Large parts of New Zealand’s cell phone network in the south is now completely reliant on battery backup power, due to widespread power disruptions.  Keeping those sites operational is critical, as scores of office workers in Christchurch are texting messages indicating they are still alive, but trapped in damaged or collapsed buildings.

Emergency generators are being pressed into service as providers recognize their wireless networks are often the only reliable link residents now have with the rest of the country. Some cell sites operated by Telecom New Zealand (TNZ), Vodafone and 2Degrees equipped with solar or battery backup systems began to fail last night.

“We’re asking our customers in Christchurch to have patience if they lose service. Although we can’t identify which sites will lose battery power or when, we know that they are generally in good shape so can be placed back in service once power becomes available,” says 2degrees CEO Eric Hertz.

TNZ and their biggest competitor Vodafone have set aside their rivalry and are coordinating efforts to keep the country’s networks up and running.  Staff of both companies have been largely ordered to remain home, as technicians on duty at the time of the quake pull overtime duty.  Emergency 111 service, today answered by operators in Wellington 190 miles away, is now prioritized and customers have been told by government officials that cell phone use in the affected region should be limited for emergency calls only.

All public payphones in Christchurch discontinued paid service as of this morning — all calls are now free.

Vodafone reports SMS text messaging service between networks is not functioning at this time.  That means Vodafone customers cannot send or receive text messages to anyone outside of Vodafone’s own network for the time being.

All three carriers are recommending wireless customers across the entire country use text messaging rather than calling to keep congestion to a minimum.  Text messages rarely overload wireless networks.  Most providers are also waiving contract cancellation penalties for customers whose homes or businesses were heavily damaged or destroyed, and will forward calls to functioning phone numbers at no charge.

Cable modem service in Christchurch is disrupted wherever cable cuts exist.  DSL from TNZ is also sporadic for the same reasons.

While power is expected to return across Canterbury as daybreak now arrives, officials warn outages in essential services will persist for days, if not weeks, in some particularly hard-hit areas.

Live Coverage

• NewstalkZB – broadcasting on all FM frequencies in Christchurch controlled by “RadioNetwork”
• Radio Live
• Radio New Zealand (streaming is sporadic/non-functional at this time)
• TV New Zealand (Choose “Live International Stream” when available)

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/TVNZ Quake Damage 2-22-11.flv[/flv]

TV New Zealand presented coverage moments after the quake occurred.  Some of these reports and raw video contain extremely graphic and disturbing imagery.  (30 minutes)

A snake in the grass?

You used 50 kilobytes of data visiting a web page on your iPhone, but AT&T claims the site actually consumed six times that — 300 kilobytes, for which the carrier overcharged you for access.

A major point of contention for consumers facing Internet Overcharging schemes is that the same company with a vested interest in maximizing revenue from such schemes also administers the meter that measures how much you used.  There is no oversight or independent verification.

In a lawsuit filed this week, AT&T Mobility faces accusations it is systematically overcharging iPad and iPhone users for data services many never used.

Patrick Hendricks claims AT&T’s Internet Overcharging “was discovered by an independent consulting firm retained by plaintiff’s counsel, which conducted a two-month study of AT&T’s billing practices for data usage, and found that AT&T systematically overstate web server traffic by 7 percent to 14 percent, and in some instances by over 300 percent.”

The lawsuit compares the company’s billing system to a gas pump that charges for a full gallon when it only dispenses nine-tenths into your tank.

Hendricks’ suit also claims the same independent testing firm confirmed AT&T charges for data usage even when phones and iPads were disabled for data sessions, push notifications, location services, and other data features.  After 10 days, the firm found AT&T had billed 35 data transactions totaling 2,292 kilobytes of usage, akin to being billed for gas when you never even pulled into the station.

The complaint admits the individual overcharges are relatively small for most consumers, but collectively they earn massive profits for AT&T.

“AT&T has 92.8 million customers. In the fourth quarter of 2010, AT&T reported its wireless data revenues increased $1.1 billion, or 27.4 percent, from the year-earlier quarter, to $4.9 billion,” the suit claims. “A significant portion of those data revenues were inflated by AT&T’s rigged billing system for data transactions.”

The lawsuit is seeking class action status and refunds of alleged overcharging for impacted customers.

The firm handling the case, Bursor & Fisher, has tangled with cell phone providers before, winning cases against Verizon, Sprint and T-Mobile.  The firm is also exploring a lawsuit against Sprint on behalf of Evo owners who paid a $10 surcharge on top of an “unlimited” data plan.

A Sprint customer in Tulsa, Okla., was recently sold a Blackberry plan that included a data add-on service that allowed him to tether his Sprint wireless connection to his laptop, perfect for wireless broadband on the go.

John signed a two-year contract with the company, which included a copy of his plan choice and the charges associated with his account. There it was, right on his bill — Sprint’s “Phone as Modem” add-on, priced at $15 per month.

A few weeks later, the service stopped working, and after multiple phone calls with Sprint, John was told he should have never been sold that data plan add-on; it was only available to corporate customers, not individuals.

John pointed to his contract with Sprint, which clearly showed he was paying to receive the service, but Sprint didn’t care.  Nor would it permit him to exchange his phone for wireless broadband equipment that would provide him with the broadband service he needed.  Why?  Because he was already into his two year contract.

John was left fuming, wondering why Sprint’s contracts allow them to renege on a deal made fair and square while trapping him with equipment he can no longer use to obtain the service he needs.

“To me, they voided the contract when they took away the service without my knowledge,” John told KJRH-TV’s Problem Solver Pete Knutson. “This is principle, this is sole principle.”

John canceled his contract, but Sprint promptly billed him a $125 early termination fee and sent his account to collections, threatening his credit rating.

John was not alone in his predicament.

Sprint quietly canceled its individual “phone as modem” tethering option for Blackberry owners last April, literally stripping the feature off of any plan set up with a personal Social Security number.  Business accounts configured with a Taxpayer ID Number associated with the business name on the account kept the option.

Sprint was supposed to notify affected customers through bill inserts, but since most Sprint customers are now billed electronically, few customers got the message.

Several customers reported they were “notified” when the service simply stopped working one day last spring.  One Shenandoah Valley customer found out the hard way.

“My wife used her 8330 for internet access, and we purchased the MBR900 to tether the phone so she could have it in the best place for reception,” the customer notes.  “Sprint decided to disable the use of the phone as a modem, I thought the router went kaput until she called Sprint.”

It took five rounds of calls with Sprint customer service before finding a support representative with the real answer.

An even bigger question is why a Sprint salesperson pitched John a plan with an option that has not been sold to individuals for nine months.

As has so often been the case, phone companies seeking to avoid bad publicity nearly always waive fees and credit a customer’s account when the media comes calling.  John’s account balance was brought back from collections and promptly credited to reflect a zero balance.

Sprint refused to provide a specific explanation for how this happened. Channel 2’s Knutson advises customers to always check their cell phone contracts to make sure they are actually getting the services they are paying to receive.

[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/KJRH Tulsa Cell company drops service still charges cancellation fee 1-13-11.flv[/flv]

KJRH-TV in Tulsa shares the story of John, a former Sprint customer who didn’t get the service his contract promised.  (2 minutes)

Kent Carper says magicJack has been stiffing Kanawha County for 911 fees the Florida-based phone company has refused to collect from its customers in West Virginia.

Carper, who serves as president of the County Commission, is taking his case to the West Virginia Public Service Commission (PSC) with the hope they’ll order the West Palm Beach-based YMax Communications, which owns the service, to start paying up.

“There’s nothing ‘magic’ about magicJack,” Carper told the Charleston Gazette. “It erodes the ability of the 911 center to pay for the services it’s being mandated to provide. MagicJack is not paying a penny, and their position is they don’t have to.”

Kanawha County currently collects a surcharge of $3.34 a month from landline and “digital phone” customers, $3 a month from those with cell phones.  If the county wins its dispute, the costs for 911 service will far outweigh the $19.95 a year magicJack charges for its own service.

Even Carper admits, “They’re practically giving away telephone service.”

It’s a high stakes battle for magicJack, because if it loses, other counties will surely follow with demands for 911 surcharges of their own.  magicJack officials argue they cannot collect the fees Kanawha County wants because of the way the product is marketed — typically through annual subscriptions.

magicJack’s lawyers also argue the company is not selling a true “voice-over-IP” (VoIP) service, comparable to Vonage, cable’s “digital phone” products, or other similar services.

The Federal Communications Commission partly defines VoIP as a single service for making and receiving phone calls over the public telephone network.  That’s a distinction that allows most Skype customers to avoid getting hit with fees and surcharges — Skype has a business firewall between their incoming and outgoing services. SkypeOut, which allows callers to connect with non-Skype customers, is a subscription service and does not support 911 calls.  SkypeIn service requires most users to dial from their computer, not a traditional phone line, unless a customer optionally rents a phone number from Skype.

The inventor of magicJack, Dan Borislow, said in legal filings with the PSC that customers are only buying a license for the device and the accompanying software — making and receiving calls are handled by two different services that customers get for free as part of the annual license:

The magicJack is a portable device that can be used by a customer anywhere in the world by plugging the device into a computer USB port, provided the computer has a broadband connection.

Upon purchasing a magicJack device, a customer receives a one year license, with the option to renew for an additional year or years, of software commonly known as a “softphone”. The software allows the magicJack device to operate.

The softphone operating software license gives the customer the option to subscribe to magicIn, which is a service offered by YMax. MagicIn permits a customer to obtain a phone number and to receive phone calls via his or her magicJack device.

The softphone license also permits a customer to subscriber to a service offered by magicJack known as magicOut. Subscription to the magicOut service allows a customer to make outgoing calls to the United States, Canada, Puerto Rico and the Virgin Islands through his or her magicJack device.

A magicJack purchaser who subscribes to magicOut or magicIn is not charged for either subscription, and the purchaser is also not billed for incoming or outgoing calls made or received through the magicJack device.

Kenawha County is West Virginia's most populous, home to Charleston, the state capital.

Billy Jack Gregg, the PSC’s former consumer advocate who was hired as a consultant by the Kanawha County Commission, thinks that’s nonsense. Gregg suspects magicJack is trying to avoid being designated as a VoIP provider because of mandated fees and surcharges that could come along for the ride.  Gregg testified few, if any magicJack customers are aware of “magicIn” or “magicOut,” and they don’t have the option of choosing one or the other anyway.

Gregg left Wal-Mart employees scratching their heads when he proved his point trying to only purchase the magicOut outgoing call service.  They had no idea what he was talking about.

Presumably, neither does the PSC which has rejected repeated attempts from magicJack and YMax to dismiss the case using those arguments.  Hearings are scheduled for March 1-2.

Carper says he has nothing personal against magicJack — he just wants the company to realize its refusal to collect and pay 911 fees affects the county emergency operations center’s ability to serve the public.

“Simply put, the failure of any provider to collect and remit fees impacts public safety and the ability of Metro 911 to serve the citizens of Kanawha County,” he said. “It erodes our ability to afford these emergency services.”

Some outside observers have zeroed in on a related matter — the very steep $3+ monthly 911 fees demanded by the county, West Virginia’s most populous and home to the state capital, Charleston.

Most 911 surcharges in the United States range between $0.35-0.50, with some larger cities across the country charging one dollar.  Some state laws prohibit fees in excess of $2 per month.

In earlier filings, magicJack’s lawyers appeared amenable to negotiating smaller payments, but not the $3+ county officials are demanding.

[flv width=”576″ height=”344″]http://www.phillipdampier.com/video/Boston Globe MagicJack Review.flv[/flv]

The Boston Globe’s video review of magicJack was more charitable than the accompanying write-up, which called its marketing “gaudy,” “sleazy,” and “crude.”  Author Hiawatha Bray also didn’t think that highly about the quality of the service he received, saying the product doesn’t inspire confidence and is not suitable as a home phone replacement.  Still, for long distance calls, a second line, or for travelers, magicJack can save you money.  (2 minutes)

Disgruntled AT&T customers, and those with infinite patience for Apple’s iPhone on Verizon Wireless’ network — your long wait appears to finally be over.

After nearly a year of speculation, Verizon Wireless is expected to announce the imminent arrival of the coveted smartphone on the nation’s largest wireless carrier at a press event tomorrow.

The Verizon version of the iPhone could come at a price premium, with some anticipating the entry level version of the phone could be priced as high as $249 — $50 higher than with AT&T.  The usual two year contract applies.

Analysts predict a muted stampede, at least at first, by unhappy AT&T customers.  As many as two million customers itching to dump AT&T could jump to Verizon in 2011, but they’ll pay dearly to do so.  First, their existing AT&T iPhone won’t work on Verizon’s network, so that means a new phone and a new, two year contract with Verizon to get the best price.  Second, AT&T locked many of its customers into two year contract extensions with the release of the last iPhone in June.  No amount of whining by iPhone users, which has worked to score early upgrades and discounts in the past, will get AT&T to make the price of divorce less expensive.  The company’s price to sever ties: more than $200 for most in-contract customers with the latest version of the popular phone.

[flv]http://www.phillipdampier.com/video/CNBC Verizon iPhone Package 1-10-11.flv[/flv]

CNBC discusses the pros and cons of Verizon’s adoption of Apple’s iPhone in these two reports.  (8 minutes)

Verizon iPhone users will also give up something else: an iPhone that can multitask.  AT&T’s GSM network allowed customers to browse web pages and run applications while you talked on the phone.  Verizon’s CDMA network doesn’t support that.  As long as you talk on your phone, your data applications won’t update.  It’s an either/or proposition, at least for now.

Still, expect the iPhone to be a Verizon hit like none other.  Carl Howe, an analyst for the Yankee Group, expects Verizon to sell 16.5 million iPhones in 2011, with more than half — 9 million — coming from Verizon’s own subscriber base.

The question is — can Verizon’s three bedroom house support the entire extended family showing up on their network doorstep?

AT&T’s network suffered from the onslaught of data-hungry iPhone devotees.  As millions of Americans adopted the phone, an AT&T exclusive, the company’s wireless network groaned under the usage.  With calls dropping, data trickling, and customer service irritating, AT&T scored rock-bottom in consumer ratings.

Some wonder if the same fate could afflict Verizon’s network.  Verizon currently has the lowest percentage of smartphone customers using its network among the four major carriers.  Verizon’s pricing is typically considered the culprit.  Customers insisting on the iPhone ended up with AT&T.  But those seeking Android phones had more choices — Sprint’s unlimited data plans at aggressive price points, T-Mobile’s value-oriented family shareplans, or Verizon’s robust network coverage at Cadillac pricing.

Putting the iPhone, already a premium-priced phone some consumers can’t live without, with Verizon’s reputation for high quality service, is expected to be a winning combination, and 16.5 million customers joining Verizon’s existing 30 million smartphone customers in a single year could have a dramatic impact.

“Unless Verizon has done a lot of network upgrades in advance, it may see many of the same capacity problems that have plagued AT&T,” Howe says.

The news AT&T is about to lose its exclusivity for the phone was taken in stride by some company executives, one who used the occasion to take a swipe at Verizon’s slower speed 3G network.

AT&T public relations head Larry Solomon pointed out Verizon’s 3G network relies on 3.1Mbps EVDO Rev. A technology while AT&T delivers 7.2Mbps on its HSPA 3G network.

The iPhone is built for speed, but that’s not what you get with a CDMA phone,” Solomon told Electronista. “I’m not sure iPhone users are ready for life in the slow lane.”

Verizon Wireless is expected to unveil the new phone Tuesday morning, with its in-store availability expected within a few weeks.  For fans of unlimited usage, there is one more piece of good news: Verizon is expected to continue offering unlimited data usage plans to its new iPhone customers.  AT&T cashiered its own unlimited data plan last spring, forcing customers to keep usage under 2GB per month if they don’t want an even higher bill.  Verizon is reportedly confident its network can sustain the traffic, and will leave its data hungry customers alone… for now.

Apple Insider produced this chart comparing Verizon and AT&T's smartphone pricing.

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/WTTG Bloomberg Verizon iPhone Package 1-10-11.flv[/flv]

WTTG-TV in Washington delivers the news about the imminent arrival of the iPhone on Verizon’s network in a consumer-friendly fashion, while Bloomberg delves deeper into exactly what impact the move will have on existing and future customers of both AT&T and Verizon.  (9 minutes)