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[Updated With Video] T-Mobile’s Ad Star Drops Dress for Get Tough-Biker Leather; Wireless Competition is Back

She’s back and wants to “set the record straight.”

T-Mobile’s familiar ad star is dropping her amazing pink dresses like these 2024 short pink prom dresses for some get-tough biker leather in a new series of commercials for the wireless carrier.

Canadian actress-model Carly Foulkes has appeared in “approachable”-wear designed by Debra LeClair since 2010, mostly chiding competitors like AT&T for tricky fees and “gotchas” that T-Mobile doesn’t charge. Typically amused by the antics of other wireless carriers, she promised relief for customers switching to T-Mobile’s value-oriented wireless plans.

Nearly a year after the failed merger-buyout by AT&T was first announced, T-Mobile this week unveils a “brand refresh” that promises wireless customers it is back in the fight for their business.  Traditionally, T-Mobile has positioned itself as a low-cost, value-oriented provider.  Often, the company’s service plans and pricing have forced other wireless carriers to follow suit.  AT&T’s buyout of T-Mobile would have eliminated that aggressive pricing.

T-Mobile will spend millions on the new ad campaign.

In the first ad in the series, Foulkes metaphorically tears up T-Mobile’s image over the past year, perceived as supine as the company waited to be absorbed into AT&T’s empire.  Ripping through her closet, Foulkes emerges in black leather and hops on board a motorcycle, demanding that visitors test-drive T-Mobile’s 4G network speeds against AT&T, Sprint, and Verizon.

Before her biker phase

T-Mobile’s year-long courting by AT&T cost the company plenty.

At last 802,000 contract customers fled T-Mobile for the competition, many for Sprint and Verizon, some only to avoid dealing with AT&T.

Others left because T-Mobile is the last major carrier still not offering Apple’s popular iPhone.  

The company promises to invest at least $200 million in advertising its comeback and is keeping Foulkes front and center.  In fact, outside of Verizon’s “Can You Hear Me Now” campaign which ran for a decade, ending last April, no spokescharacter has proved as recognizable as Foulkes.

The motorcycle theme will focus viewers on T-Mobile’s 4G network speeds.  Customers perceived that T-Mobile stopped upgrading and expanding its network while it pursued a merger with AT&T.

T-Mobile continues to claim it operates the nation’s largest 4G network, operating with HSPA+ technology.

T-Mobile’s “4G” network does deliver speed improvements over 3G, but some have dubbed HSPA+ “3.5G,” because resulting speeds usually cannot compete with 4G LTE technology.

T-Mobile plans to spend $1.4 billion to build its own LTE network to launch in 2013.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/T-Mobile Relaunch Ad.flv[/flv]

T-Mobile’s “brand refresh” starts with this ad, “No More Mr. Nice Girl.”  (1 minute)

Netflix’s Reed Hastings Discovers Comcast’s Usage Cap: The End Run Around Net Neutrality

Hastings vents on his Facebook page.

As Stop the Cap! has warned Netflix for years, Internet Overcharging schemes like usage caps, usage-based billing, and speed throttles represent an end run around Net Neutrality. If a provider cannot openly discriminate against the competition, slapping usage limits on them (while exempting favored services from that cap) can eventually accomplish the same thing.

Netflix founder Reed Hastings is finally getting the message after a frustrating weekend watching his Comcast usage allowance bleed away while streaming video.  He shared his views on his Facebook page:

Comcast [is] no longer following net neutrality principles.

Comcast should apply caps equally, or not at all.

I spent the weekend enjoying four good internet video apps on my Xbox: Netflix, HBO GO, Xfinity, and Hulu.

When I watch video on my Xbox from three of these four apps, it counts against my Comcast internet cap. When I watch through Comcast’s Xfinity app, however, it does not count against my Comcast internet cap.

For example, if I watch last night’s SNL episode on my Xbox through the Hulu app, it eats up about one gigabyte of my cap, but if I watch that same episode through the Xfinity Xbox app, it doesn’t use up my cap at all.

The same device, the same IP address, the same wifi, the same internet connection, but totally different cap treatment.

In what way is this neutral?

Comcast says it is “neutral” by framing its own Xbox-streamed video as a “set top box replacement,” even though the video that flows to the Xbox console travels down the same last-mile network Comcast says it needs to “protect” with its 250GB monthly usage cap.

Comcast doesn’t actually need a 250GB usage cap, particularly after the company upgraded its broadband facilities to DOCSIS 3 technology.  That vast improvement in capacity at a comparatively low cost (easily recouped by the company’s latest round of rate increases) should be shared with customers.  Instead of “applying caps equally,” Comcast should abandon them altogether.

[Thanks to Earl, one of our regular readers, for sharing the story.]

Your Cable TV Bill in 2020: $200/Month — Just for Television Shows, Says New Report

Phillip Dampier April 10, 2012 Competition, Consumer News, Online Video Comments Off on Your Cable TV Bill in 2020: $200/Month — Just for Television Shows, Says New Report

If you thought paying an average of $86 a month for basic pay television and premium movie channels in 2011 was out of line, just wait.  A new report predicts you could pay $123 by the year 2015 and $200 by 2020 — and that only includes the TV portion of your bill.

That is in keeping with typical annual rate increases, typically blamed on “increased programming costs,” which currently run an average of six percent a year.

The NPD Group, who published the findings, predicts consumers may not sit still for that kind of monthly cable television bill, especially as household incomes for the middle class continue to remain stagnant, even as high fuel and health care prices continue to march higher.

The pay television industry isn’t entirely responsible for the annual rate hikes that nearly always outpace the rate of inflation.  The real money is in programming production and distribution, which is why giant companies like Comcast, Bell, Rogers, and Viacom are buying up programming studios, distributors, and networks at a rapid pace.

With new players like Netflix, Amazon, and Redbox joining traditional pay television and broadcast network bidders, auctions for exclusive licensing agreements bring higher and higher bids.  Ultimately, consumers pay the price in the form of higher bills.  Even cable networks, sensing an increase in the value of their programming, are extracting higher monthly fees at contract renewal time.

The last to arrive at the programming money party?  Local over-the-air broadcasters that used to beg cable companies to carry their channels on the local lineup.  Now some are demanding as much as $5 or more per month per subscriber to allow the cable operator to keep carrying the stations.

“As pay-TV costs rise and consumers’ spending power stays flat, the traditional affiliate-fee business model for pay-TV companies appears to be unsustainable in the long term,” said Keith Nissen, research director for The NPD Group. “Much needed structural changes to the pay-TV industry will not happen quickly or easily; however, the emerging competition between video on demand and premium-TV suppliers might be the spark that ignites the necessary business-model transformation of the pay-TV industry.”

In other words, the more consumers cut cable’s cord and go find other ways to watch their favorite shows, the more unsustainable the traditional pay television business model will become.  Some industry watchers believe cord-cutting is not a major issue.  Others believe continued rate increases will drive customers to cancel service, particularly when alternatives are available. But NPD believes economic factors are the biggest reason for cable cord-cutting.  Those ex-customers are switching back to free “over the air” television, which now delivers better picture quality and often includes additional channels that increase the number of viewing options.

NPD Group research shows most consumers don’t want to exert too much effort to hunt down online programming. Most will put up with their current provider as long as they deliver the shows they want at a price they can afford.  What could change that?  Easy-to-access to a-la-carte programming, perhaps available from services that may soon come built-in with the newest television sets.

“Pay-TV providers offer a convenient, one-stop shop for subscribers, and the majority of customers like it that way,” said Russ Crupnick, senior vice president of industry analysis for The NPD Group. “There is an open window for the industry to meet consumer needs and become to television what iTunes is to music; however, there is also a definite risk if pay-TV providers don’t capitalize on the opportunity — and soon.”

Canadian Telecom Giants Outwit Would-Be Cord Cutters; Alternatives Also Under Pressure

Canadian cable, phone, and satellite providers have done a better job stymieing would-be “cord-cutters” than their counterparts further south in the United States.

The Canadian Radio-television and Telecommunications Commission’s (CRTC) annual report on the country’s telecom companies shows all of them remain exceptionally profitable, keeping pay TV customers far more effectively than American providers. Total revenues climbed from $12.5 billion to $13.5 billion in just one year, as price hikes, Internet Overcharging schemes like usage-based billing, and lack of competition continue to takes its toll on Canadian wallets.

The biggest winners were the biggest telecom companies in Canada — Rogers Communications, Bell Canada (BCE), and Shaw Communications, which all saw profits soar 8.2% to $11 billion.  Costs increased about 10.7% in 2011, fueled by network upgrades and rampant hikes in programming costs — an interesting state of affairs considering Rogers and Bell own or control a substantial number of the programmers demanding higher payments.  Most of those increases were passed on to customers in the form of rate hikes.

Although Canadians are increasingly interested in streaming online video, virtually every major Internet Service Provider in the country has effectively prevented customers from dropping cable television service in favor of broadband-only access.  They manage it with usage caps and usage billing on their broadband products.  With streamed video accounting for a substantial drain on customers’ monthly usage allowances, Canadians are unlikely to cancel cable TV in favor of watching all of their favorite shows online.

In fact, the number of Canadian households that subscribed to a cable company’s basic television service actually increased by 2.8% in 2011 to reach 8.5 million.  Experts say the country’s transition to digital over the air television may account for some of that increase, but a few high broadband bills with overlimit fees for “excessive Internet use” can effectively drive online video fans back to traditional cable TV as well.

Satellite television in Canada remained flat,  with a virtually unchanged 2.9 million Canadians relying on Bell and Shaw satellite service for television entertainment.

But everyone is paying more to watch.

In 2011, cable companies paid $2.1 billion in wholesale fees to the pay and specialty services they distribute, an increase of 10.2% over the $1.9 billion paid the previous year. The fees paid by satellite companies rose by 2.8% in one year, going from $894.4 million to $919 million.

That leaves vertically and horizontally-integrated conglomerates like Bell in the perfect position to extract higher programming payments.  Those costs are passed down to Canadian consumers and blamed on “greedy programmers,” despite the fact those programmers are owned in part or outright by Bell.

A Rogers retail rental store

Rogers is also well-suited to remain a part of the Canadian entertainment experience.  The company owns cable systems, wireless phone networks, programmers, and even home video stores. However Stop the Cap! reader Alex notes Rogers has been closing a number of those video stores over the past few months.

“This gives customers one less choice for renting movies, basically forcing them to use Rogers On Demand instead,” writes Alex.

Rogers On Demand comes with a higher price, too.  In-store rentals from Rogers are priced at 2 for $9 or 3 for $15.  A recent look at Rogers’ video on demand website, Rogers Anyplace TV, shows most movie titles priced at $4.99 each.  With Rogers closing 40 percent of their retail rental outlets, movie fans have had fewer competitive choices for movie rentals.

One potential new contender coming to Canada – kiosk video rentals.  Although services like Redbox are now commonplace in the States, they are virtually unknown in the north.  Jim Gormley, former owner of Jumbo Video is back with Planet DVD.  With just 2% of Canadians renting movies from kiosks, Gormley believes there is plenty of room to grow, especially as Rogers scales back its video rental business.

Planet DVD has a pilot project running with supermarket chain Sobeys to place kiosks in front of nine store locations.  The first kiosk was erected in early March in front of a Sobeys store in Mississauga, Ont.

A new release at a Planet DVD kiosk is priced at $3 for a one-day rental.  That’s less than what most video stores charge, but more than double what Americans pay at a Redbox kiosk.

AT&T “Wins” Consumerist’s Third-Worst Company in America Award

The Consumerist awards AT&T the "Bronze Poo" Award for Third Worst Company in America. (Image: The Consumerist)

A video game company reviled by game fans and the perennially-shoddy Bank of America managed to beat out America’s lowest rated phone company in The Consumerist’s “Worst Company in America” annual award contest, but not by much.

As Electronic-Arts tries to explain away its top-worst rating, AT&T easily took third place after a consolation round decidedly eliminated Walmart.

Congratulations to the folks aboard the Death Star! As soon as we get some proper bronze-colored paint, we’ll be packing up your Bronze Poo and sending it off in the mail. It will, of course, include a 620-page end-user agreement that preempts any class-action lawsuits by AT&T employees.

Some Consumerist readers wondered why game fans rushed to beat EA over the head over its anti-consumer tendencies when Ma Bell was still ripe for some kicking:

This should be easy call. I’m pulling for AT&T to go all the way. The list of AT&T transgressions is long and wide-ranging. Much more so than EA.

  • AT&T is like the T-1000 Terminator, reassembling itself after Ma Bell was broken up in the 80’s;
  • AT&T caps broadband Internet connections;
  • AT&T is one of Washington’s biggest lobbyists;
  • AT&T blocks important updates from customer’s phones;
  • AT&T tried to buy up a competitor to reduce competition and further monopolize the spectrum which is collectively owned by We The People;
  • AT&T shameless displays its arrogance on its own AT&T Public Policy blog;
  • AT&T opposes Net Neutrality.

I could go on and on…

The Consumerist notes their award epitomizes the last 12 months for AT&T.

“First it attempted to leap-frog to the head of the wireless pack by swallowing T-Mobile whole, only to fail miserably after many months and at a cost of several billion dollars,” the piece reads. “Then it came tantalizingly close to vying for the coveted Worst Company In America Golden Poo trophy, only to be given the smack-down by a video game company. At least it won’t be leaving the tournament empty-handed.”

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