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T-Mobile/Sprint Merger Approval May Depend on GOP Maintaining Majority in Congress

As the wireless industry awaits an announcement that T-Mobile and Sprint have an agreement to merge, some on Wall Street are skeptical the merger deal will win approval, especially if Republicans lose their majority in the House and Senate in the 2018 mid-term elections.

Matthew Niknam of Deutsche Bank has warned his clients any merger deal not approved by next November is more likely to fall apart if  Democrats take back control of Congress:

“There also may be greater incentive for both sides to evaluate a potential deal sooner rather than later, given the risk that deal approval may slip beyond mid-term elections in late 2018 (with the risk that more populist/less corporate-friendly sentiment may become more pervasive in D.C.) In fact, we note that the Democrats’ ‘Better Deal’ agenda (unveiled in July 2017, targeted towards 2018 elections) highlights ongoing corporate consolidation as a threat to U.S. consumers, and proposes sharper scrutiny of potential deals.”

Nikram writes there has not been a lot of interest by cable operators to acquire Softbank’s Sprint, which has been effectively up for sale or merger for at least a year.

Fierce Wireless notes Cowen & Company Equity Research last month suggested the chance of a merger between T-Mobile and Sprint was now 60-70%, down from 80-90% originally. The reason for the pessimism is their estimate that any deal’s chance of winning approval was only about 50%. The odds get even worse if the Democrats start to check the Trump Administration’s power.

Public policy groups and well-compensated industry opinion leaders are already preparing to wage a PR war over a deal that would reduce America’s major wireless carriers to just three.

Professor Daniel Lyons, well-known for writing pro-industry research reports defending almost anything on their corporate policy wish list, is hinting at a possible strategy by the merging carriers by suggesting neither could survive without a merger.

Most analysts predict that with just three national wireless carriers, the U.S. wireless marketplace would more closely resemble Canada — widely seen as more carrier-friendly and expensive.

Wall Street analysts are debating exactly how many tens of thousands of jobs will be lost in a merger, and the numbers are staggering.

Jonathan Chaplin of New Street Research predicts the merger would cost the country more jobs than now exist at Sprint.

He predicts “approximately 30,000 American jobs” will be permanently lost in a merger. Together the two companies currently employ 78,000 — 28,000 at Sprint and 50,000 at T-Mobile.

Craig Moffett of MoffettNathanson Research was more conservative, predicting 20,000 job losses would come from a merger. But the impact would not be limited to just direct hire employees.

“We conservatively estimate that a total of 3,000 of Sprint and T-Mobile’s branded stores (or branded-equivalent stores) would eventually close,” Moffett’s report said.

Golden parachutes will make some executives at Sprint and T-Mobile very wealthy if a merger succeeds.

Many T-Mobile and Sprint stores are located in malls and retail “power centers” where maintaining both stores would be unnecessary. Also hard hit would be wireless tower owners and those employed to care for them. Most believe Sprint’s CDMA wireless network would eventually be decommissioned in a merger, and many of its cell sites would be mothballed. Sprint’s biggest asset is its currently unused trove of high frequency wireless spectrum it could use to deploy future 5G services, but those services would likely be provided from small cells mounted on utility poles and street lights.

The biggest winners in any deal will likely be top executives at Softbank, Sprint, and T-Mobile, Wall Street banks providing deal advisory services and financing, and shareholders, who can expect higher earnings from a less competitive marketplace. Fierce competition from T-Mobile and Sprint were both directly implicated for threatening revenues for all four wireless companies, who have had to respond to aggressive promotions by cutting prices and offering more services for less money.

The Trump Administration’s choices of Ajit Pai for Chairman of the FCC and Makan Delrahim as United States Assistant Attorney General for the Antitrust Division of the Justice Department are both widely seen as signals the White House is not going to crack down on competition-threatening merger deals. Mr. Pai has recently improved the foundation for a T-Mobile/Sprint merger by declaring the wireless industry to be suitably competitive, something required before seriously contemplating reducing the number of competitors.

Eight Democrats sent a letter to the FCC chairman last week calling on both the FCC and the Justice Department to begin an investigation into the possible merger as soon as possible, citing possible antitrust concerns.

The text of the letter:

Dear Chairman Pai and Assistant Attorney General Delrahim:

We write to ask you to begin investigating the impact of a merger between T-Mobile International and Sprint Corporation. According to Pew Research, over three-quarters of Americans now own smartphones, driven by a 12 percent increase in smartphone ownership among adults over age 65 and a 12 percent increase in smartphone ownership in households earning less than $30,000 a year since 2015. Today, smartphones are not really just phones at all. For many, they are the primary connection to the internet. An anticompetitive acquisition would increase prices, burdening American consumers, many of whom are struggling to make ends meet, or forcing them to forego their internet connection altogether. Neither outcome is acceptable.

We believe that an investigation is appropriate for three reasons. First, aggressive antitrust enforcement benefits consumers and competition in the wireless market. Second, a combination of T-Mobile and Sprint would raise significant antitrust issues and could dramatically harm consumers. Third, although a deal has not been announced, the two parties have made repeated attempts to merge, and current reports suggest they are close to an agreement. Your agencies should be in a position to fully – but expeditiously – investigate and analyze this deal should it occur.

Competition among wireless carriers has lowered prices, increased quality, and driven innovation

Consumers have benefited from competition among the four national carriers, and we have effective antitrust enforcement to thank for that competition. In the summer of 2011, the Department of Justice’s (DOJ) Antitrust Division filed suit to block AT&T’s proposed acquisition of T-Mobile despite claims that T-Mobile was a weak competitor and, without the deal, remaining options “won’t be pretty.”  The FCC likewise outlined its opposition to the deal that fall. The deal collapsed, but T-Mobile did not. It competed. It spent billions improving its network, and it offered better terms; for example, it eliminated two-year contracts and data overages. It enticed customers to switch providers by paying their termination fees. And, its competitors had to respond in kind. As William Baer, former head of DOJ’s Antitrust Division, has explained, consumers have enjoyed “much more favorable competitive conditions” since that transaction was blocked.  In May 2017, the Wall Street Journal reported that cellphone plan prices were down 12.9 percent since April 2016, the largest decline in 16 years, and attributed the drop to “intense competition” among the top cell service providers: Verizon, Sprint, T-Mobile, and AT&T.  Paul Ashworth, chief U.S. economist at Capital Economics, specifically suggested that it was caused by the “price war that has broken out among cell-phone service providers, with all the big providers now offering unlimited data plans at cheaper rates.”

Further, the fact that T-Mobile and Sprint appear to be each other’s primary competitor raises additional concerns about this potential horizontal merger. That direct competition has particularly benefited lower-income families and communities of color, many of whom rely on mobile broadband as their primary or only internet connection.  Sprint and T-Mobile have offered products and service options that are more appealing to lower-income consumers. For example, T-Mobile was the first major carrier to offer a no contract plan,  and both Sprint and T-Mobile have been leaders in offering prepaid and no credit check plans, which allow people who may have poor credit to obtain a cell plan and ultimately access the internet.

A combination of T-Mobile and Sprint would raise significant antitrust concerns

Not surprisingly, when T-Mobile and Sprint first discussed a merger in 2014, both of your predecessors expressed skepticism. William Baer stated that “[I]t’s going to be hard for someone to make a persuasive case that reducing four firms to three is actually going to improve competition for the benefit of American consumers.”  Similarly, former FCC Chairman Tom Wheeler simply explained, “[f]our national wireless providers are good for American consumers.”

What is surprising, however, is that a few years later the two companies have revived their merger talks. Whether one looks at cellphone competition as a national market or as numerous local markets, T-Mobile’s acquisition of Sprint would very likely be presumptively anticompetitive. We are concerned that this consolidation would increase prices, reduce incentives to offer new plans, and allow the remaining carriers to curtail their investment in their networks. Further, given both companies’ focus on competing for lower-income customers, the combination of Sprint and T-Mobile could disproportionately harm those consumers. In addition to potentially raising retail prices, the remaining carriers are also likely to increase prices to companies like Straight Talk, which buys bulk access to one or more of the four national carriers and advertises almost exclusively to lower-income communities.

T-Mobile and Sprint will no doubt claim that the merger will leave sufficient competition, increase cost savings, and spur investment. The agencies will need to examine these issues in depth and make the ultimate determination as to whether the effect of such a deal would be to undermine or promote competition. The very complexity of the issues only further justifies the need for the agencies to begin examining the markets and investigating the competitive dynamics sooner rather than later.

Initiating an investigation is appropriate

Although the antitrust agencies often wait for an official filing before opening an investigation, nothing requires this delay. For example, in May, the Antitrust Division announced an investigation of the possible acquisition of the Chicago Sun-Times by the owner of the Chicago Tribune.  The two companies in question here have had a longstanding interest in combining, and, according to reports, an agreement between Sprint and T-Mobile may be weeks away.

Beginning an investigation into a merger of T-Mobile and Sprint now will allow your agencies to quickly, but fully, review the agreement if it is announced. Indeed, multiple news sources are reporting that the two parties are close to a deal in principle. The likelihood of the transaction occurring combined with the serious issues that it raises provide compelling reason for DOJ and the Federal Communication Commission to begin investigating the potential transaction.

For the reasons stated above, we urge you to begin to examine this potential transaction now. Competition among four major cell phone carriers has benefited consumers with lower prices, better service, and more innovation. We are concerned that consolidation will thwart those goals. Thank you for your prompt attention to this matter.

Sincerely,

Amy Klobuchar (D-Minn.)
Al Franken (D-Minn.)
Patrick Leahy (D-Vt.)
Richard Blumenthal (D-Conn.)
Ron Wyden (D-Ore.)
Kirsten Gillibrand (D-N.Y.)
Ed Markey (D-Mass.)
Jeff Merkley (D-Ore.)

Puerto Ricans Giving Up on U.S. Cell Phone Providers; Mexico’s Claro Has Best Coverage

U.S. cell phone providers are facing increasing criticism they are dragging their feet on restoring cell service in Puerto Rico while Mexican-owned Claro has now successfully restored service in 28 of the territory’s 78 municipalities.

Claro Puerto Rico, owned by Mexican billionaire Carlos Slim’s America Movil, has dramatically outpaced AT&T, T-Mobile, and Sprint in getting their damaged cell phone facilities back up and running. Claro is Puerto Rico’s second most popular cell company behind AT&T.

“Claro is the only one with service here,” Francisco Portales, 47, a customer of privately held Puerto Rico-based network provider Open Mobile told a Reuters reporter while waiting outside the Claro store in Fajardo hoping to buy a phone.

Looking for a signal.

The FCC’s latest update on Tuesday reported about 88% of Puerto Rico is still without cell service, but the agency does not break down network repairs by carrier, and American providers have declared their specific restoration plans to be confidential.

While AT&T complained the lack of commercial power remained its biggest problem, Claro said it had pre-positioned generators, diesel fuel, battery backups, and vehicles 72 hours before the hurricane hit, which appears to have made all the difference in restoring service.

Sprint said late last week its towers were still standing and “largely intact” although it gave no specific information on when service might be restored. T-Mobile was more frank, reporting “it’s going to be a long road to recovery.”

Claro is not taking advantage of its position as the island’s most reliable post-hurricane carrier, allowing customers of other providers to roam on its network where a signal is available. That may be all the good publicity Claro needs to win over new customers after the hurricane damage is repaired.

Claro’s repair trucks.

Mercedes Saldana, a 54-year-old school cafeteria worker and Sprint customer is just one of many now searching shops for a Claro prepaid phone.

“I don’t have any service, none,” she said. “We don’t know when Sprint’s going to be connected again.”

Customers unwilling to switch carriers and won’t roam may have long travel times ahead of them to find a signal. Luis Pacheco, 64, was planning to drive with his wife to Canovanas — 30 to 40 minutes west — in hopes of finding a cell signal to text his daughter in California. That is the nearest community where AT&T has a signal at the moment.

Before the storm, AT&T dominated Puerto Rico with a 34% market share, followed by Claro Puerto Rico with a 26% share. T-Mobile was third with 19%, Open Mobile has 11% and Sprint 10%. Verizon Wireless has no network facilities in Puerto Rico, but travelers with Verizon phones are granted roaming access on Claro’s network.

As Battery Backup and Generators Fail, New Telecom Outages Across Florida

Unattended generators that have run out of fuel and exhausted battery backup systems are causing additional service outages for telephone and wireless customers in Florida, Georgia, Alabama, Puerto Rico, and the U.S. Virgin Islands.

Although the last remnants of Hurricane Irma are now a mild rainmaker moving into the Ohio Valley, the impact of the storm at its peak is still being felt across the southeast, and some customers are surprised to discover new outages even as providers work to restore service in the region.

Data from the Federal Communications Commission and from impacted providers indicate that new cell towers are failing because backup generators have now run out of fuel. Technicians often cannot reach the cell tower sites to refill generator fuel tanks because of driving restrictions and inaccessible roads. The worst outages continue in rural parts of Florida, the Florida Keys, the U.S. Virgin Islands and parts of Puerto Rico.

Most of the telecommunications network failures are a result of power interruptions. Most cell towers are able to withstand hurricane force winds and short-term flooding, and underground fiber connectivity between the tower and the provider means failures from trees falling on utility poles is not usually a problem. In most cases, once power returns, cell towers will return to service almost immediately.

Wireline facilities in Florida are not faring as well, however.

911 Call Centers

Since yesterday, the FCC reports 29 emergency 911 call centers are down or compromised, up from 27 a day earlier:

In Florida:

Down with no re-routes: Homestead Air Force, Marathon County SO, and Ocean Reef

Up without Automatic Caller Location Information (ALI): Cape Coral PD, Collier County EOC, Ft. Myers Police Department, Hardee County Back Up, Hardee County Sheriff, Highlands County Sheriff, Lee County Emergency Dispatch Center EOC, Lee County Sheriff, and Okeechobee County Sheriff’s Department

911 Calls Re-routed with ALI: Atlantic Beach PD, Belle Glade PD, Broward County South Region, Indian River SO, Manalapan PD, Miami Beach PD, Neptune Beach PD, Sanibel Police Department, and St. Augustine PD

911 Calls Re-routed without ALI: Big Cypress Indian Reservation, Clewiston Police Department, Desoto County Sheriff, Glades County Sheriff, Glades County Sheriff Back Up, Hendry County Sheriff, Lee County Backup, and Naples PD

In the U.S. Virgin Islands, the 911 call centers in St. Croix and St. Thomas cannot locate callers and calls from Voice over IP phone lines do not provide the number the person is calling from.

Wireless

As of Sept. 12, the worst affected areas with cell towers out of service:

Cell tower on wheels

Alabama: Less than 1% of cell sites in the disaster area are out of service — two of the 87 cell sites in Henry County are offline.

Florida: 24.6% (down from 27.4% yesterday) of all cell sites in the state are out of service. The worst affected counties:

  • Collier: Out of 212 sites, 154 are out of service (72.6%)
  • Hendry: 36 of the county’s 46 cell sites are down (78.3%)
  • Highlands: 43 of 80 cell towers are out of service (53.8%)
  • Monroe: 89 of 108 cell towers are out of service (82.4%). Much of Monroe County is in the Florida Keys.
  • Union:  Seven of 13 cell sites are not functioning. (53.8%)

Georgia: 10.5% of cell sites in the designated disaster area are out of service. Wilkes County is hardest hit, with one of the county’s two sites out of service. Other significantly affected counties include: Glynn (26.2%), Camden (17.4%), Mitchell (14.7%), Brooks (14%), and Colquitt (12.2%).

Puerto Rico: Puerto Rico: 14.5% (down from 19.4% yesterday) of cell sites are out of service.

U.S. Virgin Islands: 53.8% (down from 55.1%) of cell sites are out of service.

Wireline (Cable and Telephone)

There are at least 7,184,909 (down from 7,597,945 yesterday) subscribers out of service in the affected areas in Alabama, Florida, and Georgia. This includes users who get service from cable or wireline providers.

A massive spike in landline central office failures was also documented yesterday, with service outages at switching centers up from 390 yesterday to 819 today in Florida.

Customer complaints are starting to rise based on early predictions that once power was restored, telecommunications services would quickly follow. That has not always been the case in South Florida, however.

Comcast’s Wi-Fi hotspots are all functioning normally, as long as there is internet service in the neighborhood. But home broadband outages are common, especially in coastal areas and in the Florida Keys. Where power is out, Comcast services go out with it. Getting service back requires first restoring power.

“As of Tuesday morning, we have been able to restore power to some but not all of the equipment that services customers in the Miami-metro area. We are working very closely with Florida Power and Light so they can prioritize these critical facilities and restore commercial power service to them as quickly as possible,” said Mindy Kramer, a Comcast spokesperson. “Our facilities in South Florida have been running on generators since the storm began and unfortunately everyone is need of the same fuel resources. We have been doing our best to refuel these generators so that our facilities are able to stay functioning without commercial power. We have teams deploying additional generators today in South Florida.”

Comcast has a website for customers to report storm impact issues: https://www.xfinity.com/florida.

AT&T U-verse customer Ron Dias in Southwest Miami-Dade lost his bundled services — TV, Internet and digital home phone — Saturday and they are all still out, even though his power was restored Monday. He wants answers.

“I wish they would tell us what is going on. This is the information age,” he told the Miami Herald.

AT&T is treating its outage and restoration information as a proprietary trade secret, much to the frustration of customers like Dias.

AT&T issued the same statement to media outlets:

“In Florida, South Carolina, Alabama and Georgia some [U-verse] customers may be experiencing issues with their service because of flooding and storm damage. Our technicians are working to restore service to affected areas as quickly and safely as conditions allow. Our Network Disaster Recovery team is deploying portable cell sites to the Florida Keys, Miami and Tallahassee. Additionally we are deploying an electronic communication vehicle, command center and a hazmat team to Miami. We have additional resources being staged for further deployment across the region. We are monitoring our network closely and are coordinating with emergency management officials and local utility companies.”

AT&T stages repair crews to deal with Hurricane Irma.

The newspaper quoted Reginald Andre, president of Ark Solvers, a company that manages computer services for condominiums and other businesses, who estimated about 80 percent of his 240 business customers are experiencing outages with either Atlantic Broadband — many of them Miami Beach condominiums — Comcast’s XFINITY or AT&T U-verse, he said. Many have their business’ phone services through the internet too. “If the internet is down, their phones are down.”

Atlantic Broadband, which serves some high-end gated communities, condos and exclusive enclaves in South Florida notes most of its customers lost service during the hurricane, but the company has already restored service to 25% of its customers.

“Atlantic Broadband’s restoration workforce is currently mobilized in Florida and our network and facilities are intact. We have assembled additional response teams from across all Atlantic Broadband operating locations to support these efforts. As commercial power is restored and downed drops are cleared, Atlantic Broadband will be moving briskly to restore services to its customers,” the company said in a written statement.

Frontier Communications, which serves some small Florida communities as well as former Verizon service areas in Florida, has said little about the storm or its recovery efforts, except to ask customers to call the company if their services are not working after power is restored.

Verizon has announced it is relieving itself of all liabilities for Hurricane Harvey and Irma-related outages:

We must also declare a Force Majeure event for Hurricanes Harvey and Irma to the extent that there is any delay or inability by Verizon or its vendors to provide services. Under Verizon’s Service Guide and customer contracts, this declaration relieves Verizon of liability that would otherwise result from any such delays or non-performance.

Verizon Wireless reports 90% of its cell towers in Florida and 97% in Georgia are in service.

Free text messages sent to AT&T and Verizon customers in storm-affected areas. Verizon has extended its offer until Sept. 15.

“Many of those cell sites are running on backup power as designed for reliability, and massive refueling operations are underway to ensure those sites without commercial power continue in service for our customers and first responders,” the company said on its website. “We continue to assess the impact across Florida, Georgia and South Carolina, and mobile equipment and personnel have been moved into impacted areas. This week we will begin deploying Unmanned Aerial Systems (drones) to survey sites and assess antennae and tower damage. Repairs to impacted network facilities are well underway, and in many cases already complete. We are in contact with federal, state and local emergency management teams and are coordinating communication needs and efforts with them.”

Verizon is also extending its “data relief” offer until Sept. 15 in storm-affected areas. The initial offer began just after midnight on Sept. 9. Verizon is giving postpaid customers talk, text and data overage relief while prepaid customers receive an extra 3GB of data. To see if you qualify, see: Postpaid customer list of qualifying counties or Prepaid customer list of qualifying counties.

Sprint claims: “Progress is being made to the Sprint network as commercial power is gradually restoring across Florida. Sprint has fixed generators at our sites which are helping to provide service to some customers. Additionally, our network crews continue to assess any damage, refuel generators, and work to restore wireless service to customers who may be impacted. As it becomes safe, we will continue to deploy more crews, portable generators and satellite trucks providing temporary wireless coverage across the area. We are reminding people to continue to use text messaging rather than voice calling to help relieve network resources.”

Sprint is waiving all text, call and data overage fees for Sprint, BoostMobile and Virgin Mobile customers in Florida through September 15, 2017, and extending the same previously announced waived overage fees for customers in Puerto Rico and U.S. Virgin Islands through September 15, 2017. Fees will be proactively waived during the specified timeframe. Customers on Unlimited plans will continue to enjoy their unlimited data, call and text benefits. The company will also waive all international call and text overage fees for Sprint, Boost Mobile and Virgin Mobile customers in the U.S. to the Bahamas, and roaming voice and text overage charges for Sprint customers in the Bahamas, effective today through September, 15, 2017. Customers can sign in to their My Sprint account to enable international calling before attempting to make a call. They can also chat with a Sprint International Representative. Customers may cancel international calling at any time following the effective period.

T-Mobile is making it free to call and text from the United States to the Bahamas and Turks and Caicos. T-Mobile will also waive roaming fees on calls and texts for customers in the Bahamas and Turks and Caicos. The offer is good until Sept. 15. T-Mobile also is offering free calling/texting, as well as unlimited data, for Florida customers not on T-Mobile ONE (customers on T-Mobile ONE always have unlimited calling/texting/data). The Florida offer applies to T-Mobile and MetroPCS customers in the following area codes until Sept. 15: 239, 305, 321, 352, 386, 407, 561, 689, 727, 754, 772, 786, 813, 850, 863, 904, 941, 954.

AT&T is automatically issuing credits and waiving additional fees to give unlimited data, talk and texts to AT&T wireless customers and unlimited talk and texts to AT&T PREPAID customers. This is effective beginning Sept. 8 across all of Florida and Sept. 12 in impacted Georgia counties and continuing through Sept. 17 for all impacted customers. AT&T is also extending payment dates for impacted AT&T PREPAID customers with voice and text service through Sept. 17. This applies to AT&T wireless customers with billing zip codes and AT&T PREPAID customers with billing phone numbers in all of Florida and in nearly 25 Georgia counties – Appling, Atkinson, Bacon, Brantley, Bryan, Bulloch, Camden, Candler, Charlton, Chatham, Clinch, Coffee, Effingham, Evans, Glynn, Jeff Davis, Liberty, Long, McIntosh, Pierce, Tattnall, Toombs, Ware and Wayne. Customers in these areas may still receive data alert notifications during these protected dates, but billing will reflect the correct data charges.

Broadcasters

TV Stations out of service: 9 (up one from yesterday)

  • Alabama: None
  • Florida: WVFW, WGCU, WSBS (up one from yesterday)
  • Georgia: None
  • Puerto Rico: WOST, WMEI, WQQZ, and WWKQ (same as yesterday)
  • U.S. Virgin Islands: WTJX-TV and W05AWD (same as yesterday)

Radio stations out of service: 51 (up from 25 yesterday)

  • Alabama: None
  • Florida: WMFM, WAXY, WDOZ, W227CP, W250BH, W274BB, W298BO, W300CL, WAQV, WFLJ, WJFH, W251BM, WROK, WAOA- FM, WHKR, WLZR, WIOD, WOLZ, WINZ, WBTT, WCKT, WZTA, WSVU, WSWN, WOTW, WMFQ, WXUS, WYGC, W240CI, W295BJ, W233AP, WMKO, WEAT, WMFL, WWFR, WJFR, WTIR, WMYR, WCNZ, W294AN, WNWF, WEJZ, WGNE-FM, and WJGO (up 19 from yesterday)
  • Georgia: WLFH, WHFX, WBGA, WGIG, WEKL and WGCO (all added since yesterday)
  • Puerto Rico: None
  • U.S. Virgin Islands: WTJF-FM (same as yesterday)

Telecom Companies Prepare for Hurricane Irma

Phillip Dampier September 7, 2017 AT&T, Comcast/Xfinity, Consumer News, Frontier, Public Policy & Gov't, Sprint, T-Mobile, Verizon, Virgin Mobile, Wireless Broadband Comments Off on Telecom Companies Prepare for Hurricane Irma

AT&T, Verizon Wireless, Sprint, and T-Mobile are sending technicians to hundreds of cell sites across Florida to top off fuel generators, test back up batteries, and protect facilities from Hurricane Irma’s anticipated storm surge and associated flooding.

“Customers rely on us, especially during major storms,” said Joe York, AT&T Florida president. “That’s why we practice readiness drills and simulations throughout the year. We do all we can to have our networks prepared when severe weather strikes. We’ve worked for the past few days to position equipment and crews to respond to the storm. We’re closely linked with Florida public officials in their storm response efforts. With a storm of this size, we may have some outages. But if service goes down, we’ll do all we can to get it back up as fast as possible.”

With landfall possible along the Florida coast or inland, Verizon pointed out that in Florida, since last hurricane season, it has densified its network with 4G, fortified coverage along evacuation routes, put cell sites equipment on stilts and installed new systems in hospitals, government and emergency facilities, and high-traffic public areas.

“The country is only beginning to wrestle with recovery efforts from Harvey, and already, residents of Florida and the Caribbean are bracing for another potentially devastating storm in Hurricane Irma,” said Sprint CEO Marcelo Claure. “During times like these, the cost of staying connected to friends and loved ones should be the last thing on anyone’s mind, and we want to do what we can to support our customers across impacted areas.”

Hurricane Irma’s impact on Puerto Rico.

AT&T and Verizon Wireless are positioning portable cell tower trailers just outside of areas anticipated to take the brunt of the hurricane. AT&T in particular has a lot to prove as its network now includes FirstNet — a public private wireless broadband network for emergency responders that also depends on AT&T’s wireless networks. States are still in the process of opting in to AT&T’s FirstNet. The company has more than 700 pieces of emergency cellular equipment, including Cell on Wheels, Cell on Light Trucks, portable trailers and generators, and even the possibility of deploying Cells on Wings — airborne cell towers that can restore cell service in areas where roads are inaccessible because of floods.

Wireline companies are also positioning repair crews in the region to bring service back online. Other technicians are checking on emergency generator and battery backup power, particularly for maintaining landline service.

“Our team is working to prepare for extreme weather and will be there for our business and residential customers to quickly and safely restore any affected network services,” reports Frontier Communications, which provides service in former Verizon landline service areas.

The phone company is reminding landline customers that not all phones will operate during a power outage, but that does not mean Frontier’s landline network is down.

“Customers who rely on cordless phones should consider plugging a traditional corded phone directly into the wall. In the event of a commercial power outage, corded phones on the copper network will still operate; cordless ones will not,” the company says. “If commercial power is unavailable, generators and batteries in Frontier’s central offices serve as a backup. Phone lines generally will have enough power in them to use a corded phone. For customers using FiOS phone services, the battery backup will supply voice service for up to eight hours.”

The company also warns customers to watch out for damaged utility lines after the storm is over.

“Stay far away from any downed cables or power lines. Contact Frontier at 800-921-8102 (business) or 800-921-8101 (residential) to report any fallen telephone poles or cables.”

Some companies are offering customers a break on their bills:

  • Verizon: Landline customers will not pay any long distance charges for calls to Anguilla, the British Virgin Islands, Puerto Rico, Dominican Republic, Haiti, and the Turks and Caicos Islands from Sept. 6-9. Taxes and any government surcharges applicable will still apply. Verizon Wireless customers inside the U.S. will not be charged for texts or calls originating in the U.S. to those same countries and territories for the same period.
  • T-Mobile and MetroPCS customers in affected areas of Puerto Rico:  Will get calls, texts, and unlimited data free from Sept. 6th through Sept. 8th. This free service will be available to customers in the 787 and 939 area codes.
  • Sprint: Effective today through Sept. 9, 2017, Sprint will waive call, text and data overage fees for its Sprint, Boost Mobile and Virgin Mobile customers in Puerto Rico and the U.S. Virgin Islands. For Sprint, Boost Mobile and Virgin Mobile customers in the U.S., the company will also waive all international call and text overage fees to the following: Anguilla, Dominican Republic, Haiti, Turks and Caicos, and British Virgin Islands. For the same period, Sprint will also waive roaming voice and text overage fees for its customers in those locations. Fees will be waived during the time specified.
  • Comcast: Opening more than 137,000 XFINITY Wi-Fi hotspots throughout Florida to anyone who needs them, including non-XFINITY customers, for free. For a map of XFINITY Wi-Fi hotspots, which are located both indoors and outdoors in places such as shopping districts, parks and businesses, visit Xfinity.com/wifi. Once in range of a hotspot, select the “xfinitywifi” network name in the list of available hotspots and then launch a browser. Comcast internet customers can sign in with their usernames and passwords and they will be automatically connected to XFINITY Wi-Fi hotspots in the future. Non-Comcast internet subscribers should visit the “Not an Xfinity Internet Customer” section on the sign-in page to get started. Non-customers will be able to renew their complimentary sessions every 2 hours through Sept. 15, 2017.

AT&T Offers These Customer Tips:

  • Keep your mobile phone battery charged. In case of a power outage, have another way to charge your phone like an extra battery, car charger or device-charging accessory. Applicable sales tax holidays are a great time to stock up on cell phone accessories.
  • Keep your mobile devices dry. The biggest threat to your device during a hurricane is water.  Keep it safe from the elements by storing it in a baggie or some other type of protective covering, like an Otterbox phone cover.
  • Have a family communications plan. Choose someone out of the area as a central contact.   Make sure all family members know who to contact if they get separated. Most importantly, practice your emergency plan in advance.
  • Program all of your emergency contact numbers and e-mail addresses into your mobile phone. Numbers should include the police department, fire station and hospital, as well as your family members.
  • Forward your home number to your mobile number in the event of an evacuation. Call forwarding is based out of the telephone central office. This means you will get calls from your landline phone even if your local telephone service is disrupted. If the central office is not operational, services such as voicemail and call forwarding may be useful.
  • Track the storm and access weather information on your mobile device. Many homes lose power during severe weather. You can stay up to speed as a DIRECTV customer, by streaming local weather channels using the DIRECTV application on your smartphone. If you subscribe to mobile DVR, you can also stream every channel directly to your phone.
  • Camera phones provide assistance. If you have a camera phone, take, store and send photos and video clips of damage to your insurance company.
  • Use location-based technology.  Services like AT&T Navigator and AT&T FamilyMap can help you find evacuation routes or avoid traffic from downed trees or power lines. They can also track a family member’s wireless device if you get separated.
  • Limit social media activity. Keep social media activity to a minimum during and after a storm to limit network congestion and allow for emergency communications to go through.

Business Tips:

  • Set up a call-forwarding service to a backup location. Set up a single or multiple hotline number(s) for employees, their families, customers and partners so they all know about the business situation and emergency plan.
  • Back up data to the Cloud. Routinely back up files to an off-site location.
  • Outline detailed plans for evacuation and shelter-in-place. Practice these plans (employee training, etc.). Establish a backup location for your business and meeting place for all employees.
  • Assemble a crisis-management team. Coordinate efforts with neighboring businesses and building management. Disasters that affect your suppliers also affect your business. Outline a plan for supply chain continuity for business needs.

Keeping the lines open for emergencies:

During evacuations, the storm event and its aftermath, network resources will likely be taxed. To help ensure that emergency personnel have open lines, keep these tips in mind:

  • Text messaging. During an emergency situation, text messages may go through more quickly than voice calls because they require fewer network resources. Depending on your text or data plan, additional charges may apply.
  • Be prepared for high call volume. During an emergency, many people are trying to use their phones at the same time. The increased calling volume may create network congestion, leading to “fast busy” signals on your wireless phone or a slow dial tone on your landline phone. If this happens, hang up, wait several seconds and then try the call again. This allows your original call data to clear the network before you try again.
  • Keep non-emergency calls to a minimum, and limit your calls to the most important ones. If there is severe weather, chances are many people will be attempting to place calls to loved ones, friends and business associates.

Additional information and tips for disaster preparedness can be found at www.att.com/vitalconnections.

Nearly 190,000 Without Internet, Phone Service in Southeastern Texas, Louisiana

Evacuations continue in Houston.

Nearly 190,000 cable and telephone customers in southeastern Texas and Louisiana remain without service as a result of the aftermath of Hurricane Harvey, which is still meandering offshore in the Gulf of Mexico near the Louisiana/Texas border. Service outages are continuing to increase in number, primarily as a result of severe flooding.

As of this morning, according to the Federal Communications Commission, 364 cell sites are out of service, 4.7% of the total number of cell sites in the affected area, up from 4.1% yesterday. The counties with greater than 50% of cell sites out are Aransas (94.7%), Calhoun (74.1%), and Refugio (84.6%) in Texas. Plaquemines is the only county in Louisiana reporting any cell sites out.

To assist customers, wireless companies are offering freebies for the duration of the storm and flooding (thanks to DSL Reports for gathering the data):

  • AT&T: Offering unspecified bill credits until Sept. 1 for AT&T prepaid and postpaid customers in impacted areas for any voice, texting, or data overages.
  • Sprint: Free texting, phone calls to southeastern Texas, southwestern Louisiana until Sept. 1.
  • T-Mobile: Free texting, phone calls to southeastern Texas, southwestern Louisiana until Sept. 1.
  • Verizon Wireless: An additional free 3GB of data for customers in “qualified Texas counties” until Sept. 8.

At least 189,487 Comcast and AT&T customers are out of service, up from at least 148,565 yesterday. Landline central offices are also increasingly failing. As of today, there are 19 offices out of service (up from 11 yesterday) and 22 (up from 21) switching offices now operating on backup power. Because of the outages, Comcast has opened its XFINITY Wi-Fi network for free access to everyone in affected storm areas.

There are nine area radio stations off the air, the same number as yesterday. KJOJ-FM went back on the air, but KMKS failed in the last 24 hours. The other affected stations — all in Texas — are:

KKTX, KUNO, KPRC, KKWV, KAYK, KZFM, KKBA and KEYS.

911 services are being restored in some areas, but have gone down or are degraded in others. As of today, here is the current list:

  • 911 Service Down: Calhoun County Sheriff, Tex.
  • Rerouted 911 Without Automatic Location of Caller Information: Aransas County SO, Tex.; Bee PD, Tex.; Beeville PD, Tex.; Harris Country Neutral SO, Tex.; Jackson County SO, Tex.; Kemah PD, Tex.; Kingsville PD, Tex.; Kleberg County SO, Tex.; Mathis PD, Tex.; Port Aransas PD, Tex.; and Robstown PD, Tex.
  • Rerouted 911: Aransas Pass PD, Tex.; Gonzales County SO, Tex.; Port Lavaca, Tex.; Robstown PD, Tex.; Victoria PD, Tex.; and Wilson County SO, Tex.

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