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Google Unveils Project Fi Wireless Service: $20/Mo Voice/Text + $10/GB Data Plan That Credits Back Unused Data

google fiGoogle today unveiled their new wireless service, dubbed Project Fi, the first wireless carrier that combines the coverage of two competing cellular providers — Sprint and T-Mobile — to deliver affordable wireless service and a data plan that rebates back any unused portion of your monthly allowance. There are no term contracts, early termination fees, or overlimit penalty charges.

Google’s calling plan starts with Fi Basics for $20 per month. This includes:

  • Unlimited domestic talk and text;
  • Unlimited international texts;
  • Low-cost international calls;
  • Wi-Fi tethering;
  • Coverage in 120+ countries (Unlimited international texts are included in the plan, Cellular calls cost 20c per minute. If calling over Wi-Fi, per-minute costs vary based on which country you’re calling and you’re charged only for outbound calls.)

There is no unlimited data plan, presumably because neither T-Mobile or Sprint was willing to allow Google to offer one. Google tries to turn that into a plus by telling customers they should only pay for the data they actually use. The 2G/3G/4G data plan is $10/GB, sold in 1GB increments up to 10GB. Whatever data you do not use is converted into a cash amount credited to the following month’s bill. Instead of rolling over data, you roll over dollars. If you exceed your allowance, there are no penalty overlimit fees. Instead, you are charged $10 for an additional gigabyte of usage, with the same privilege of getting a cash credit applied to your next bill for any data you didn’t use.

Google assumes you will spend most of your time connected to Wi-Fi, where it offers free Wi-Fi calling and texting. If you lose your Wi-Fi connection, the phone will connect to either Sprint or T-Mobile’s network without losing a call in-progress. Another unique aspect of the service is that your mobile phone number lives in the cloud, so you can talk and text with your number on just about any phone, tablet or laptop using Google Hangouts.

The Nexus 6 is a real handful. It's also the only phone that will currently work on Google Fi.

The Nexus 6 is a real handful. It’s also the only phone that will work on Google Fi.

Google Project Fi relies on Sprint and T-Mobile’s combined networks to deliver coverage, trying to satisfy customers seeking Verizon or AT&T-like coverage. Google’s service seamlessly chooses Wi-Fi first, followed by Sprint or T-Mobile depending on which offers the best 4G signal at your location.

Although the service has been anticipated for some time, there are some caveats to consider before rushing to sign up.

First, you cannot sign-up immediately, you can only request an invitation. As with many other new Google projects, invitation-only service means it could be days, weeks, or even a month before you can sign-up.

Second, a view of Google’s coverage map shows Project Fi has substantially reduced dead spots, but has not eliminated them. Project Fi would likely appeal to Sprint or T-Mobile customers now frustrated by their suburban coverage. Chances are good that between the two carriers, one will deliver a robust signal even if the other does not. But rural areas have always been bypassed by both carriers and this makes Project Fi a bad choice if Sprint and T-Mobile are not good options where you live or work.

For example, much of eastern Kentucky, virtually the entire state of West Virginia, and western Virginia offer little to no 3G/4G coverage. Google Fi only promises 2G coverage in these areas, through a roaming agreement T-Mobile or Sprint has with a larger carrier.

Third, unless you already own a Nexus 6, you will be spending at least $650 to buy a new smartphone. Google will initially only support the Nexus 6 for Project Fi, because it is the only phone capable of switching between Google’s wireless partners. It comes in your choice of colors, if your choice is “Midnight Blue.” The smartphone offers two storage sizes—32GB ($649) and 64GB ($699). You can buy the Nexus 6 up front or finance your phone at 0% interest or fees for 24 months at $27.04/month for the 32GB option or $29.12/month for the 64GB option. A credit check is required for the financing option.

Fourth, there are no family plan options. Each phone is assigned to its own account. If you intend to switch your family of four, you will be dealing with four individual accounts (and a whopping $2,600 to acquire four Nexus 6 phones). Because of the invitation-only approach now in effect, it may take some time to get all of your family members up and running.

Finally, Google intends that its mobile service effectively sells itself. That means they are not offering promotions to sign up and will not pay your existing carrier to cover any early termination fees. You can port your current landline or mobile telephone number to the service. Google does not disclose any fees for doing so.

[flv]http://www.phillipdampier.com/video/Google Project Fi 4-22-15.mp4[/flv]

Google produced this introductory video about its new wireless service: Google Project Fi. (1:56)

Net Neutrality Rule Changes At FCC May Open the Door to New Surcharge on Broadband Service

fccAs a consequence of reclassifying broadband as a utility service to protect Net Neutrality, the FCC may have unintentionally opened the door for a Universal Service Fund surcharge on broadband service.

Telephone customers have been accustomed to paying “USF” fees as part of their monthly phone bill since 1997. The average household pays just under $3 a month into the fund, which subsidizes four key programs:

  • Connect America Fund: Originally designed to subsidize telephone service in high cost rural areas, the program has increasingly shifted towards subsidizing broadband expansion in remote areas where private telephone companies won’t expand service without monetary assistance from the fund. In 2013, $4.17 billion was paid in the form of subsidies to mostly rural and independent telephone companies;
  • Lifeline: The Lifeline program pays up to $10 a month to a participating telephone or wireless company to subsidize basic telephone service for Americans living below 135% of the poverty line. More than 17 million households take part, most getting basic landline service for around $1 a month;
  • Rural Telemedicine: By subsidizing video conferencing and high-speed Internet access, rural doctors can consult with specialists in larger urban areas to help treat rural patients without the cost and risk of transporting the sick or injured to distant hospitals;
  • E-Rate: A needs-based subsidy program for schools and libraries seeking telecom services and Internet access. The subsidies help defray the cost of the services on a sliding scale, with rural and urban poor areas getting the largest subsidies.

feesThe fund has increasingly shifted towards Internet connectivity and service, but only telephone customers now pay a USF surcharge on their bill.

Net Neutrality critics warned that reclassifying broadband under Title II as a telecommunications service would open the door for new fees on broadband bills, some predicting as much as $11 billion a year in new fees. But because the FCC caps the amount of the fund each year, FCC chairman Thomas Wheeler predicted even if broadband customers are asked to contribute to the USF fund, the amount would be split between phone and broadband service, resulting in no additional out-of-pocket costs. Under that scenario, a phone customer currently paying $3 a month in USF charges would see that amount reduced to $1.50 a month on their phone bill, with a new $1.50 charge on broadband. The end amount is the same.

At least for now.

The FCC has been gradually increasing the size of the fund over the years, up 47% since 2004. Last year the FCC increased the fund by $1.5 billion to raise $8.8 billion from ratepayers nationwide. Most of the increase went to rural broadband deployment.

Industry-funded Net Neutrality critics are pushing a Los Angeles Times story about the potential for new fees, calling them ‘runaway government spending.’ But in perspective, the FCC’s $8.8 billion dollar effort to improve broadband accessibility is a fraction of the amount spent on highly controversial military projects. The F-35 Lightning II aircraft, for example, will cost taxpayers $1.5 trillion, and the Republican Congress approved $500 billion in extra funding this year for the project, funds above and beyond what the Pentagon requested. If that extra funding was spent on broadband improvements, every home in America could be wired for fiber optic Internet access. For $1.5 trillion, every home in the western hemisphere could be guaranteed broadband.

If USF fees are applied to broadband service, it is safe to expect your provider will pass along the fee as a new line item on your bill.

N.Y. Broadband Improvement Fund to Public Broadband Networks: Don’t Call Us, We’ll Never Call You

A $500 million New York State broadband improvement fund is effectively off-limits for would-be community-owned broadband networks trying to deliver broadband service in areas for-profit providers have deemed unprofitable.

New York Gov. Andrew Cuomo’s ambitious plan to revolutionize Internet access for New Yorkers depends almost exclusively on for-profit providers and the state’s largest cable operator, Time Warner Cable – the company that has so far received the largest share of state funds earmarked for better broadband.

Cuomo wants all of New York wired for 100Mbps service no later than 2018. His goal is ambitious because the overwhelming majority of upstate New York barely now receives a maximum of 50Mbps from Time Warner Cable, the only significant cable operator in the region.

The broadband map from N.Y. State shows 100Mbps service is available to most New Yorkers from Verizon FiOS, Cablevision, and a handful of municipal/co-op operators. Time Warner Cable only provides a maximum of 50Mbps service across upstate New York.

The broadband map from N.Y. State shows 100Mbps service is available only from Verizon FiOS, Cablevision, and a handful of municipal/co-op operators. Time Warner Cable only provides a maximum of 50Mbps service across upstate New York. Cablevision and FiOS compete on Long Island, Time Warner Cable Maxx competes with Verizon in New York City, and most of upstate New York is served by Verizon or Frontier DSL competing with Time Warner Cable.

Six months after the program was announced, Capital magazine reports the “New NY Broadband” plan is languishing with no defined guidelines, rules, or any clear sense about how the program will be implemented and the money spent.

Salway

Salway

In fact, one of the only clear statements coming from David Salway, a former telecommunications consultant who now administers the program, is that local governments should not bother applying because he doesn’t want them competing with Time Warner Cable, Verizon, and Frontier. It’s private enterprise only:

“The primary focus of our program is that we’re not going to be in the building business,” Salway said. He emphasized that municipal governments won’t be specifically precluded from receiving funds under the program, but said that the state is “wary” of “the government building and competing with the private sector. We see this as a provider partnership process where an incumbent provider or maybe a new entrant comes in.”

Local government leaders can read between the lines and most will not bother applying for funding if Salway’s vision guides the grant-making process. Instead, Salway wants to funnel money that effectively belongs to New York taxpayers into the pockets of for-profit providers like Verizon, Frontier, Windstream, Time Warner Cable and other providers that have consistently refused to expand their networks into rural areas on their own dime. The money earmarked for broadband is part of a $6 billion legal settlement the New York Attorney General’s office negotiated with Wall Street and commercial banks that helped plunge the country into The Great Recession.

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Broadband advocates across the political spectrum are slamming the broadband program for different reasons. Christopher Mitchell from the Institute for Local Self Reliance predicts providers will deliver bait and switch broadband on the taxpayer’s dime and send the proceeds out of the area.

“When you subsidize the private sector, you don’t really know what kind of services they’re going to provide in the future,” Mitchell said. “There’s a fair number that basically rip off consumers,” and they “basically extract resources from the community they serve.”

Mitchell

Mitchell

“The only clear beneficiaries of this program will be cable and Internet providers, who will have a new state subsidy to expand their footprints into areas in which their competitors have demonstrated an inability to operate profitably,” said Ken Girardin of the conservative Empire Center for Public Policy, in a scathing review of the New NY plan.

So far, Verizon has shown no interest in the program. It’s eventual intent is to decommission rural landline service and push existing customers to wireless service, so applying for wired broadband expansion funding isn’t a priority. The most likely applicants include Windstream, which serves a small percentage of rural New York telephone exchanges, Frontier Communications, which dominates Rochester and parts of the Finger Lakes region, and Time Warner Cable, which used earlier funding to connect two rural communities to its cable service. But all three companies are waiting for the program and its grant terms to be better defined.

With incumbent cable and phone companies reluctant to take part, there are several wired and wireless broadband initiatives in rural areas around New York starved of resources to expand their networks. The “white space” wireless broadband project in Thurman, for example, will be seeking funding to expand its wireless high-speed network into other parts of the community. Other initiatives could allow existing middle mile fiber networks in the Southern Tier and Finger Lakes region to explore building out “last mile” service to homes and businesses that now receive only DSL or no Internet access at all.

Salway promises he’ll consider funding networks that deliver the best broadband speeds for the lowest relative price in similarly sized communities. But all the money in the world won’t help if an existing phone or cable company shows no interest in serving unprofitable rural areas even after the state defrays the initial cost of placing the infrastructure to provide the service.

Mitchell believes local communities are best positioned to know what their residents want and many support publicly funded fiber technology rollouts. He points to Longmont, Col., a community that fought off propaganda mailers and a $300,000 marketing effort by CenturyLink and Comcast to defeat public fiber broadband in the city. The residents voted in favor of building their own network to move beyond the “good enough for you” broadband coming from the phone and cable company.

“The Longmonts of the country can decide to wait until these private sector companies decide its in their interest to finally build these fiber networks out, or they can say, ‘You know, we’re always going to be behind the greater technological curve of the nation,’ and do it themselves,” Tom Roiniotis, Longmont’s general manager, told Capital.

Thurman, N.Y.’s Rural ‘White Space’ Wireless Network Debuts; Speed, Capacity Blows DSL and Satellite Away

The national map of available white space channels show plenty are available in rural areas, but designing an urban network might prove challenging because open channels just don't exist.

The national map of available white space channels show plenty are available in rural areas, but designing an urban network might prove challenging because open channels often just don’t exist. In a medium-sized city like Rochester, only 11 UHF channels are available, a number likely to dwindle to close to zero if the FCC successfully reallocates much of the UHF band to wireless providers like AT&T and Verizon.

A dozen homes in the middle of the Adirondacks now have access to Internet speeds far faster than what Verizon and Frontier DSL can deliver and without the usage caps or speed throttling common with satellite Internet access.

Thurman, N.Y.’s public-private “white space” wireless network survived months of political wrangling, debate, and even intentional signal interference created by someone intent on disrupting the project. For a community that some maps depict with zero residents, the 1,200 people of Thurman are now more known than ever, winning national attention for one of the first next generation rural wireless networks to use unused space on the UHF dial to provide Internet access.

A dozen homes are the first to receive the service, with nearly 80 more on the way during phase one of the project. A $200,000 New York state broadband grant helped get the project off the ground and defray the cost of equipment installed in each subscriber’s home. But the initial cost isn’t cheap, even with the grant. New customers pay an upfront equipment fee of $292 for a receiver that costs the project up to $600. The monthly service charge is $50. Despite the price, it’s worth it to a lot of subscribers.

“The white space service is truly amazing,” said John Schroeter of Kenyontown, noting he uses the Internet for genealogical research and relied on dial-up access for the last 15 years. “I can go from one web page to another without waiting forever.”

Schroeter told Denton Publications that web pages often failed to load with dial-up, even after hours of waiting. Now he can manage to complete days of research in about an hour, without having to drive 15 miles to the nearest Wi-Fi hotspot.

Despite the fact Verizon and Frontier Communications both run their own fiber cables on the same utility poles in the region, at least 75% of the 400 homes in Thurman have no access to broadband Internet, living out of reach of even basic DSL. Many end up in the parking lot of the town hall to use Wi-Fi. Others depend on prohibitively expensive satellite access. None of the existing options were ideal. Sheila Flanagan, proprietor of Nettle Meadow Farm complained it took her hours to prepare even a small number of shipping labels to send her cheese products across the country with UPS. Speeds were so slow, she was forced to drop Williams-Sonoma as a client.

thurmanThe concept of white space wireless Internet access has already taken hold in Europe but has dragged in the United States as existing UHF television stations, wireless carriers, wireless microphone manufacturers and others who use the same frequencies white space data services also depend on defend their turf. Since white space services are unlicensed and intended for two-way communications, fears that Internet users would degrade wireless microphones or TV reception meant special care had to be taken to lower the potential for interference.

Since rural areas lack a crowded television dial, are often outside of the coverage areas of wireless carriers, and are unlikely to host many wireless mics, white space broadband would seem like the natural solution.

The project in Thurman faced a number of obstacles to overcome anyway. There were philosophical objections from tea party conservatives who objected to tax dollars paying for the “luxury” of Internet access when satellite service is available. Some residents wanted a fiber to the home solution, one that was likely financially out of reach for the small community. Still others wanted the money spent on a fiber link between the town and Time Warner Cable, that might then be enticed to wire homes in the rural community. In the end, the community decided to go ahead with an advanced wireless network, citing a number of factors familiar to many living in rural areas:

  1. thurman-nySince the town is located entirely within the Adirondack Park, there are prohibitions on placing communications towers on nearby peaks or other high spots that could spoil the view;
  2. The heavily forested and mountainous area made a traditional Wireless ISP project difficult because those networks need line of sight communications. White space wireless signals easily penetrate through trees and can stay intact across hilly terrain;
  3. Although not as bandwidth capable as fiber optics, white space networks are capable of delivering 10Mbps broadband per UHF channel. Most networks bond multiple UHF channels together to support even faster speeds and expand capacity;
  4. The chances of creating interference for other spectrum users was low in Thurman, which is a four-hour drive from New York and far enough north of Albany to avoid interfering with signals from the state capital. Even wireless carriers hug their cell towers along I-87, a respectable distance away;
  5. The network has redundant backhaul access to fiber from both Verizon and Frontier, neither of which show the slightest interest in expanding services into the community on their own;
  6. The grant was limited in scope and white space broadband qualified so it proved the most economical choice for a community that was no stranger to fights over money, engaging in political battles over issues like the cost of building a salt shed and auditing the on-hand count of trash bags.
The Thurman white space broadband project hides base station antennas in the tree canopy.

The Thurman white space broadband project hides base station antennas in the tree canopy.

Tests provided the project managers with an idea where to place needed wireless antennas, often hidden within tree canopies. But at least one disgruntled resident made a point of creating intentional interference on the channels the project managers were testing, committing a federal offense along the way. That was quickly overcome and the equipment has been placed and will soon be joined by installations in nearby neighborhoods, broadening the reach of the service.

Recent advancements in white space technology have also allowed speed and capacity to improve dramatically. Equipment now transmits its exact GPS-identified location to a national database which sends back an authorized list of “white space” channels each transmitter can use to provide the service. If a new licensed broadcaster takes to the airwaves, a database update will lock out that channel in the area, preventing interference.

Although exact speed data was not available at press time, Sally Feihel demonstrated she could successfully stream an episode of a classic Andy Griffith Show on her iPod at the same time a videoconference was underway and someone else was downloading a movie, all without skipping a beat. In fact, there is so much speed and capacity built into the system, its managers say speed throttles and usage caps are completely unnecessary.

Most users agreed the wireless network far outpaced satellite and DSL and some believed it was even faster than Time Warner Cable Internet access they experienced elsewhere. (Time Warner Cable doesn’t come near the community today.)

Constructing the network only took several months, but the politics that often surrounds public-private initiatives and the need for grant funding in income-challenged rural America can tie up projects much longer than that. The need for decent and affordable Internet access often will cross party lines, especially in rural communities.

New York’s state broadband expansion fund could help expand similar projects to other bypassed areas of the state. That investment may actually save taxpayers from paying high broadband bills indefinitely.

Residents are eagerly waiting for the next expansion to begin down Valley, Garnet Lake and Glen-Athol Roads. Moving beyond that may take more grant funding.

“White space is saving us $90 per month, and it’s far faster than satellite ever was,” another resident said.

[flv]http://www.phillipdampier.com/video/MetroFocus A New way to Bring Broadband to Rural Towns in Upstate New York 2014.mp4[/flv]

MetroFocus showed the initial planning and testing phases of Thurman’s new white space wireless network, including interviews with town officials and a tour of the community. (4:23)

[flv]http://www.phillipdampier.com/video/Dynamic Spectrum in Action How TV White Space Devices Work.mp4[/flv]

TV white space wireless broadband networks are designed to avoid interference with other licensed spectrum users. See how the technology works in this short video. (2:27)

New Zealand Soars Past U.S. in Fiber Broadband Revolution; Now #1 in Fiber Among OECD Nations

Phillip Dampier March 11, 2015 Broadband Speed, Competition, Consumer News, Data Caps, Public Policy & Gov't, Rural Broadband, Video Comments Off on New Zealand Soars Past U.S. in Fiber Broadband Revolution; Now #1 in Fiber Among OECD Nations
Dunedin is New Zealand's "Gigatown" and ISP Orcon sells unlimited access to gigabit speeds for $68.50US a month.

Dunedin is New Zealand’s “Gigatown” and ISP Orcon sells residents unlimited access to gigabit speeds for $68.50US a month.

New Zealand is now the world leader in fiber optic broadband deployment, achieving an annual growth rate of 272 percent and on the way to becoming one of the top 10 nations for broadband speed.

“We are now ahead of Australia, the United States and Japan for fixed broadband, with more than 31 broadband subscriptions for every 100 New Zealanders signed up for this service,” said Amy Adams, New Zealand’s Communications Minister. “This is an impressive jump and demonstrates the impact that the government’s $2 billion investment in the Ultra-fast Broadband and Rural Broadband Initiative program is having on the telecommunications services available to New Zealanders. People are increasingly choosing fiber for its superior speeds, capacity and reliability as the build continues across New Zealand.”

Before the government intervened, broadband in New Zealand was notoriously slow and rationed with low usage allowances and speed throttling. Most of the country received ADSL service, a technology that is rapidly being discarded by most developed nations in favor of VDSL in rural areas and fiber optic broadband in urban and suburban communities. Government policy defined broadband as an essential service for the country’s current and future economic growth and implemented a nationwide broadband improvement plan designed to replace or augment outdated copper telephone lines with fiber optic infrastructure.

While countries like the United States and Canada effectively allow private corporations to define and control their digital destinies, New Zealand believes transformational ultra-fast broadband is too important to leave in the hands of industry alone.

“Fiber is very much like electricity was 100 years ago,” said Maxine Elliot, CEO of Ultra-Fast Fibre (New Zealand). “It’s the single biggest infrastructure build we have done in a long time and it will make that kind of difference in our lives. I think when they first began building out electricity, it was all about a light bulb. No one could have imagined we would have microwaves and computers. We cannot begin to imagine the change that we are about to see with fiber.”

Flag of New Zealand

The explosive growth of fiber broadband has helped the country leap ahead of much larger OECD members like Australia and the United States.

“Over the past ten years, we have moved up from 22nd place out of 30 OECD countries in June 2004 to being 15th out of 34 OECD countries for fixed broadband subscriptions as at June 2014,” Adams noted. “At the same time, the quality of people’s broadband packages is improving, with greater numbers of customers using VDSL or fiber, rather than the older ADSL technology.”

The fiber infrastructure has also led to other benefits not originally anticipated. Wireless companies throughout the country have tapped into the fiber connections which deliver backhaul connectivity between cell towers and the fiber broadband network, allowing greater wireless broadband speeds and more capacity. Today, New Zealand is in the top 10 in the OECD for wireless broadband.

New Zealand’s fiber network has allowed providers to cut prices, increase speeds, and offer unlimited access as an affordable option for customers who want the service. It is also expected to dramatically cut the costs of maintaining the country’s telecom network, which were growing as older copper infrastructure aged.

[flv]http://www.phillipdampier.com/video/Ultra Fast Fibre Why ultra-fast broadband.mp4[/flv]

New Zealand believes its digital future depends on fiber optics, not on last generation DSL from the phone company. This video explains the immediate benefits of discarding century-old copper infrastructure in favor of fiber optics. (3:17)

[flv]http://phillipdampier.com/video/Ultrafast Fibre Installation process.mp4[/flv]

Ultra-Fast Fibre installation is orderly, on time, and technicians will even plant new grass seed and color-match any replacement concrete or driveway patches. This video explains the three-step process customers go through to get fiber service installed. (3:59)

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