Pagliughi

Avalon mayor Martin Pagliughi wants answers about why Verizon left hundreds of residences and businesses on the Seven Mile Island with intermittent phone service for more than a week, with no notification or explanation forthcoming from the telephone company.

The service outage, which began Oct. 28, extended all the way until Nov. 8, forcing customers to endure incomplete calls, one-sided conversations, and other problems.

Verizon blamed a piece of failing equipment for the outage — a technology card installed at a switching office in central New Jersey.  The result was disrupted service for residents of both Avalon and neighboring Stone Harbor, and Verizon officials never realized it.

Verizon officials claimed technicians missed the failing card because an alarm on the card never sounded.  Dozens of complaints from customers were ignored by Verizon customer service representatives.

Pagluighi wants to know how this could have happened.

“It was very troubling to me that in an era of mass telecommunications and putting men on the moon that Verizon could not be aware of a big problem in Avalon and Stone Harbor while dozens of complaints were coming into their representatives,” Pagliughi told the Cape May County Herald.

He added that many residents told the borough that when they contacted Verizon to complain about the lack of telephone service, Verizon reps told them their complaint was the first one from Avalon.

“This outage is not only about an inconvenience to our community, it’s really about a critical public safety issue,” Pagliughi said. “It’s time for utilities that make a lucrative business in our communities to have a greater level of accountability for the services they are paid to provide,” he said.

The mayor met with public safety officials and representatives from Verizon to create a plan to prevent a repeat occurrence.  Had the winter storm that barreled up the east coast over the weekend struck at the same time as the phone outage, public safety could have been at risk.

The newspaper reports the parties agreed to take the following actions:

• A total replacement of the technology card that failed during the telephone outage. The card will be replaced by technicians sometime during January 2011 with no anticipated interruption of telephone service;
• Verizon will draft a plan that will result in greater recognition of a community-wide problem along with proper notification of emergency management authorities in the affected region;
• A special practice “drill” will be conducted involving county and municipal emergency management officials that will test Verizon’s new contingency plan to notify a community when a phone outage occurs;
• Verizon will arrange a field trip during the first quarter of 2011 so local officials can talk with staff at a local field office to discuss communication efforts between the utility and local emergency management officials.

Unitel is one of five Maine telephone companies facing competition from Time Warner Cable's "digital phone" service

The Maine Public Utilities Commission has denied a request by Time Warner Cable to launch “digital phone” competition in rural Maine unless and until the cable operator agrees to completely wire every home that wants service in the affected communities.  The decision may carry national implications because it signals utility commissions have the power to stop unfair competition from companies that don’t agree to provide their service on a universal basis.

Five rural phone companies faced the prospect of trying to compete with Time Warner Cable’s “digital phone” service under requirements they provide universal service to every customer in their service area while the cable operator could cherry-pick where to provide service.

Unitel, Lincolnville Networks, Tidewater Telecom, Oxford Telephone Company and Oxford West Telephone Company told the PUC Time Warner Cable’s competitive threat was not fair because the cable company only provided service in choice neighborhoods, typically those with multiple residences adjacent to one another.  Only wiring significant population areas reduces costs for the cable operator while the rural landline providers are required to extend service to every resident in their communities, regardless of where they live.

A review by the PUC found Time Warner Cable’s request would create an undue economic burden on the rural telephone companies, reducing their value and increasing the risk of their long term survival, which would discourage investment and increase risk to creditors.

Reishus

PUC Chair Sharon Reishus: “Our decision…is taking place in a changing landscape for telephone regulation at the federal level with pending congressional and FCC actions, in the marketplace and in wireless technology. Our decision came down to an analysis of the current financial ability of the rural companies to withstand market competition if the exemption were lifted.”

“Customers in these rural areas must be assured a telephone service provider of last resort and access to lifeline services. Although the commission has a long history of recognizing the value of competition in the telecommunications market, in this instance, where Time Warner is not proposing to expand the availability of its service throughout the entire service territory of the rural companies, selective competition would undercut the ability of the rural companies to fulfill their ‘provider of last resort’ obligations.”

For years large telephone companies like AT&T and Verizon have argued that cable’s entry into the telephone business was unfair because cable companies never were required to serve every potential customer.  But instead of maintaining demands that cable match their universal service obligations, large phone companies have instead tried to free themselves from having to provide service to every possible customer.  AT&T, for example, has heavily lobbied for repeal of universal service requirements that mandate they provide telephone service to residents who live in the most rural service areas.

The Maine PUC has adopted a different standard — demanding that would-be cable competitors get busy wiring their entire communities for cable if they want permission to compete with area phone companies.  If they are not willing to do so, they cannot provide phone service to anyone in those communities.

Time Warner Cable had been seeking permission to provide phone service in rural Maine since 2008.

[flv width=”560″ height=”340″]http://www.phillipdampier.com/video/Oxford Networks.mp4[/flv]

A promotional video from Oxford Networks (d/b/a Oxford/Oxford West Telephone Company) explaining the company’s history and their investment in fiber optics.  (3 minutes)

Bzz... bzz... bzz.... AT&T U-verse Voice customers got nothing but busy signals for much of today.

AT&T U-verse telephone service failed its customers this morning from coast to coast.

A major outage, starting at around 5:00am EDT left callers from Los Angeles to Connecticut with nothing but busy signals for at least four hours.

Customers could not reach an operator or 911 emergency services, and calls to AT&T’s customer service and repair lines were met with busy signals.

Some customers headed online to get chat support, but discovered queues stretching into three digits.  John from Tennessee writes Stop the Cap!:

I am number 473 in the chat queue at the moment, which is laughable.  My only other phone is an AT&T prepaid GoPhone and I’m not going to give AT&T 25 cents a minute to tell them their U-verse service has failed.  They’d better hand over some credit.

He was well ahead of Ccalana from Folsom, California who was #852!

Other websites have reported similar complaints from impacted customers.  Broadband Reports noted AT&T confirmed the company suffered a national U-Verse voice outage for much of the day.

Customer service agents have been less than helpful, not giving out much information about what’s behind the collapse of AT&T’s Voice Over IP phone service.

The only good news is that the worst of the outage appears to be over at this point, with customers noting returned dial tones and calling capability starting after noon.

AT&T warns customers outages can make 911 service from U-verse Voice unreliable.

This is the second major outage experienced by AT&T U-verse Voice this month.  The last one occurred May 16th from around 3-8am.  Few customers noticed.

Most phone and cable companies do not extend outage credits for consumers unless they are asked.  So when service is restored, be sure to ask AT&T for a credit on your next bill.

Illinois politics is business as usual — if you’re a high-powered business like AT&T, that is.  They’ve just proven how easy it is to sucker the fifth largest state’s legislature and several newspaper editorial boards with a dog and pony show of promises that it will have few regrets (and no consequences) for breaking later on.

Once again, AT&T is upset about the terms it agreed to in efforts to rebuild its nationwide reach through frenzied mergers and acquisitions.  This time it’s the 1999 merger with Ameritech.  AT&T claims the promises its partner SBC made to state regulators to green-light the deal are now too hard to honor. If only you and I could lobby legislators to walk away from our own personal responsibilities.  “I can’t pay my town taxes because the neighborhood has changed since I first moved here, so it would be unfair of you to ask.”

The argument apparently worked in the Illinois General Assembly which passed AT&T’s Get Off the Regulatory Hook Bill (Senate Bill 107) unanimously earlier this month.  The bill has now been sitting on Governor Quinn’s desk for more than two weeks, and AT&T is getting nervous.  Letters to the editor and AT&T-friendly editorials have started appearing in the Illinois press in a coordinated effort to beat the drum loud enough to get the governor’s attention to sign the bill unchanged.

Ameritech used to provide phone service to most of Illinois before being purchased by SBC Communications (later AT&T) in 1999.

Memories are short.  The Illinois Commerce Commission established ground rules for AT&T precisely because its predecessor provided abysmal service in the state.  As part of a hard-fought campaign to secure Ameritech, AT&T promised Illinois it would:

• provide reliable landline service in rural Illinois at a fair price;
• provide DSL broadband to at least 90 percent of Illinois customers;
• recognize that landline service remains an essential utility for millions of residents, many of whom don’t have the option of switching to another provider.

That was then, this is now.

These days, those requirements are apparently too tough on AT&T.  The company complains Illinois residents can switch to Comcast phone service (from the Worst Company in America 2010) or sign up for cell phone service from AT&T or a few other providers, assuming one has reception.  With all of this “competition,” AT&T argues there is no reason to continue regulating the company’s landline services, especially in rural areas AT&T could probably do without anyway.

Illinois is just the latest stop on AT&T’s big budget deregulation traveling circus, starring high-paid lobbyists and astroturf friends, all coordinating to unshackle their benefactor from pesky regulations.

The state’s legislature is evidently a million miles away from its fellow midwestern states who have been chauffeured down AT&T’s Promise Avenue before, only to discover it quickly became a one-way toll road for consumers.  Ask Wisconsin.

AT&T’s Message — Less is more.

AT&T routinely promises less regulation will magically open the door for its much-coveted U-verse platform.  Every elected official would love to claim he or she brought much-needed cable competition to their district, so promises of telco-TV are quite an incentive for legislators.  The formula is simple — you deregulate us and we’ll bring more U-verse deployment to your state.

Illinois State Senator Michael Bond (D-31st District)

Politicians trip over one another running to the nearest microphone over promises like that.

“This legislation is the key to opening up investment in the telecommunications industry in Illinois,” said state Sen. Michael Bond. “By modernizing our system, we are showing providers that we are worthy of their investment.”

But hasn’t AT&T already made a trip to that well before?  Last June, AT&T issued a press release crediting deregulation undertaken in 2007 for making U-verse expansion possible in Illinois:

AT&T U-verse is being expanded in Illinois thanks to legislation passed in 2007 and supported by State Senators Larry Bomke and Bill Brady and State Representatives Raymond Poe, Rich Brauer, Robert Flider and Bill Mitchell. The Cable and Video Competition Law provides an environment that encourages new video providers, such as AT&T Illinois, to invest in Illinois to compete against incumbent cable providers.

What will AT&T want next to finish U-verse deployment in Illinois – tax-free status?

That U-verse was designed to save AT&T’s landline business from a torrent of disconnect requests always gets missed by elected officials.  Basic landline service over copper wire is a dying business.  If AT&T doesn’t deploy U-verse, its ultimate destiny as a landline provider will be the horse and buggy industry of the 21st century.  Regulators need not throw away valuable consumer protections to protect a multi-billion dollar company already well-aware of what it needs to accomplish to stay profitable.

What consumers end up with — Less service for more money.

Despite the flowery rhetoric that competition is breaking out all over Illinois, 78 percent of state residents continue to rely on landline telephone service. That numbers 6.5 million consumers. Among the well-represented holdouts are fixed income seniors, and for most of them, a $200 monthly deluxe triple-play package of services is out of the question.

For customers that cannot afford higher rates, the Illinois Citizens Utility Board fought for and won a three year rate freeze and reprieve for AT&T’s budget-minded Consumer’s Choice telephone packages that were slated to be discontinued.  These packages don’t bundle unneeded calling features or extra services, instead providing affordable basic telephone service.  But after three years, AT&T can cancel these packages and raise prices at will, particularly in rural areas where competition is minimal to non-existent.  State oversight of AT&T is also history, leaving little recourse for consumers who suffer through poor service or AT&T’s legendary billing nightmares.

Supporters also promoted the deregulation legislation as a “jobs bill” — a ludicrous contention for legislation that contains no section pertaining to jobs.  Perhaps they meant more jobs for AT&T’s lobbying crew.  In fact, landline phone companies like AT&T are slashing jobs by the tens of thousands and will likely continue to do so.

Illinois Senate Bill 107 allows AT&T to set the stage to follow Verizon’s example — exiting rural areas, leaving the bulk of their investments and potential profits in large cities like Chicago.

The State Journal-Register wrote a shortsighted editorial supporting the proposed deregulation bill

Newspaper editorials like this one in the State Journal-Register in Springfield mean well but are breathtakingly short-sighted.  The editorial staff gushes about the benefits U-verse will bring Springfield, without any evidence U-verse will actually be universally available in the community anytime soon:

On a less philosophical level, we believe the new telecom law will be beneficial to most Illinois consumers because it should promote competition for household cable TV, Internet and phone service. In markets like Springfield, it could allow AT&T and Comcast to go head-to-head throughout the city, not just in the few areas where AT&T’s U-verse service is now available. That’s what cable customers have been demanding for decades.

AT&T customers have learned not to hold their breath waiting.  Any regular visitor to the company’s own support forums will quickly discover customers frustrated by lack of availability, hit or miss service, and no coverage map.  One customer summed it up:

I have NEVER in my life had to fight so hard to spend money on something.
Not even my wife makes it this hard on me to get something.
I have NEVER in my life (aside from when I got my AT&T POTS service) had a company work so slowly to accomplish something to try and attract a perspective customer or keep a current customer.

But there’s more.  Had the Journal-Register picked up the phone and checked with their neighboring states, they would have learned U-verse is not the competitive nirvana it’s routinely promised to be.  In Wisconsin, rates for cable, broadband, and phone service continue to increase, not decrease.  Most of the savings built into introductory packages for new customers expire after one year, and some providers limit the discounts to once per household.  That means once your new customer discount package expires, you may never get it again.  Then it’s a lifetime of ever-increasing pricing.

AT&T-backed bills also never require the company to completely wire every community for its U-verse service.  The company can bypass neighborhoods, towns and villages, or buildings it feels are not cost-effective to serve.  There are states that deregulated AT&T to their specifications and years later, communities are still waiting for service to reach their areas.  Illinois will be no different, and if AT&T determines U-verse isn’t worth the investment in large swaths of southern Illinois, so be it.

The Citizens Utility Board is correct when it predicts most of the investment will end up in Chicago, even at the expense of other parts of the state.  AT&T always follows the money.

AT&T’s Astroturf Friends Join the Parade

You have to look closely to see the connection. Who really is behind ITP?

AT&T’s friends are also writing letters to the editor demanding action, without disclosing they are bought and paid for sock puppets.

Take the Illinois Technology Partnership, which claims to represent a grand union of consumer and private interests for the betterment of Illinois’ high tech future.  In reality, it’s yet another AT&T astroturf group that works against consumers.

Their claim:

The Illinois Technology Partnership is the Illinois-based project of Midwest Consumers for Choice and Competition, a non-profit organization of individual consumers interested in technology, broadband, and telecommunication issues with state projects throughout the Midwest region.  ITP brings together industry experts, thought leaders, and Illinois consumers to foster an environment that will encourage emerging technologies, jobs, and investment, and spur economic growth on the state and local level.

Reality Check:

Both ITP and the ironically-named “Midwest Consumers for Choice and Competition” are both creatures of AT&T.  Thad Nation, behind all of these groups, invents AT&T-supported astroturf campaigns in various states where the company delivers service.  Over the past few years, Nation has cooked up TV4Us, Wired Wisconsin and Technology for Ohio’s Tomorrow, among others.  But his real day job is the founder and senior partner at Nation Consulting, a politically-connected lobbying firm:

At Nation Consulting, Nation focuses on assisting corporate clients with strategic planning in government and public relations, and managing crisis communications.

Our team has worked on the “inside” of the offices of Governors, Congressional members, and state agencies. We’ve worked at every level of government, and we have the relationships necessary to help you navigate state and federal bureaucracies to accomplish your goals. We know how government works – and we know what government can do for you.

Getting government officials or bodies to do what you want isn’t easy. Government is inherently a slow, bureaucratic entity. When you want elected or appointed officials to change policy, you need a comprehensive plan – and the resources, relationships and quick-thinking to implement that plan.

We come to you with decades of experience in advocacy, moving legislators and engaging state agency leaders to action. Let us help you build and drive an aggressive advocacy agenda.

Regardless of your industry, the internet has a role to play in achieving your public relations goals – and we have the experience and the expertise to implement a plan suited to your needs. Whether you need to effectively use social networking sites, manage a blog, conduct email campaigns or use Web 2.0 tools, Nation Consulting can help you maximize your online presence in a way that is both cost-effective and beneficial to your business or organization.

Ordinary consumers can’t afford Nation Consulting’s services so he doesn’t work for them.

As usual, AT&T’s connections don’t end there.  Many of the “partners” listed on ITP’s website are themselves also backed by AT&T — the Illinois State Black Chamber of Commerce and Illinois Hispanic Chamber of Commerce just two examples.  Several of ITP’s partners follow Nation’s efforts wherever he goes, also ending up affiliated with his other astroturf projects.

A letter to the editor appearing in The Daily Herald signed by Lindsay Mosher, executive director of ITP, applauds the state legislature for passing AT&T’s custom-crafted deregulation bill:

This legislation will spur significant private investment, increase broadband access and create jobs for Illinois residents at no cost to taxpayers.

The legislature deserves our thanks for taking this step.

Now it’s up to Governor Quinn to finish the job and sign the bill without changes, as some have suggested.

As is too often the case, readers are done a disservice when a newspaper prints a self-interested letter to the editor or guest editorial without fully disclosing who is behind it.  Mosher could have signed her letter “AT&T lobbyist” and been more honest.  In fact, in addition to her position at ITP, she’s also employed by another Chicago lobbying firm — Resolute Consulting.  It specializes in issue advocacy as well, and doesn’t work for free.

AT&T spends an enormous amount of money carefully crafting its issues advocacy campaigns designed to convince consumers they are representing your best interests.  Wouldn’t using all this money to lower your phone bill and provide better broadband service be a better allocation of resources if, as AT&T claims, this is all to benefit consumers?

Here’s another question — if an individual consumer in western New York can expose all of these incestuous ties between supposedly grassroots consumer groups and the telecom companies and interests that fund them, why can’t the news media in Illinois?  If they only followed the money, the real story about Senate Bill 107 could have been told before it sailed through the legislature unopposed.

Now, the only chance Illinois consumers have is if Governor Quinn loses the bill.

Fayette County, Pennsylvania

Brazen copper thieves have taken to ripping phone cable right off the poles in an effort to cash in on resurgent copper pricing, usually to feed expensive drug habits like the ones discussed when you visit this web-site.

In southwestern Pennsylvania, repeated thefts have gotten so bad Verizon announced a $50,000 reward for information leading to the prosecution of those involved.

The epidemic of copper theft in Fayette County has reached an all-time-high as Verizon finds large sections of working cable stripped right from telephone poles.  When the cables come down, phone and broadband service goes out.

“These thefts are incomprehensible because they put people’s lives in danger and can cost thousands of dollars to repair,” said Michael Wagner, director of construction for Verizon Pennsylvania.  “We will not tolerate these deliberate and malicious acts against our telephone network and our customers.”

As a result of these crimes, hundreds of Verizon local phone customers have unnecessarily experienced telephone service delays – up to several days in some cases – and endured risks to their personal safety.

“They’re putting people who rely on phone service out of service,” Verizon spokesman Richard Young explained. “They’re putting customers who need service in danger in the event of an emergency to call an ambulance, to call the fire department. This person is putting the lives of people at risk.”

Verizon has suffered nine losses across the county in just a month:

• April 22 in Uniontown – A 360-foot section of copper cable was cut and stolen.
• April 25 in Farmington – A 600-foot section of copper cable was cut and stolen.
• April 26 in White House – Nearly 400 feet of copper cable and a fiber-optic cable were cut and stolen.
• May 5 in White House – A 290-foot section of a copper cable and a fiber-optic cable were cut and stolen.
• May 11 in Shoaf – A 300-foot section of cable was cut and stolen.
• May 11 in Smithfield – A 230-foot section of cable was cut and stolen.
• May 12 in Haydentown – More than 1,200 feet of copper cable and a fiber-optic cable were cut and stolen.
• May 14 in McClellandtown – Two sections of copper cable totaling 500 feet were cut and stolen.
• May 17 in Gates – A 350-foot section of copper cable was cut and stolen.

Southwestern Pennsylvania is by no means alone in confronting copper theft.  Across the country, thieves are stealing copper wiring from every utility.  Thieves also steal copper pipes from homes, and in a new trend, are stripping copper coils from air conditioning units.

The reason for the interest in copper is its ever-increasing value.  Copper prices exploded a few years ago, and have trended upwards ever since.

Copper price trends

In January 2009, copper was bringing “just over a dollar a pound,” according to Lee Swann, a security contractor who works with Georgia Transmission Corporation. Today — “depending on what type of copper it is” — the metal is bringing $2.80-$3.10 per pound — an all-time high for many recyclers, even as prices have recently declined on the spot market.

At those prices, the incentives are there for theft.  Recovering and recycling copper has been a growth business for years, and many companies aggressively advertise “top dollar paid for recovered metals” promotions in newspapers and circulars.

Some recycling facilities are vigilant for suspicious truckloads of “recovered” copper while others are less so.  But as law enforcement confronts the growing trend in copper theft and utility companies begin offering rewards to stop it, many facilities are now regularly cooperating with local police.

Most of the proceeds from stolen copper likely go towards illegal drugs, particularly methamphetamine, believes the Coalition Against Cable Theft, a Washington-based advocacy group funded by home builders, contractors, and utility companies who are usually the victims of copper theft.  The Coalition wants strengthened laws to deter recyclers from accepting and paying for questionable sources of recovered copper.

Perhaps copper theft would be just one more reason why providers should dump copper wire for fiber optic networks, but many of the thieves are stupid — indiscriminately cutting and tearing down cables of all kinds, only later to find they were stuck with fiber optic cable, which most immediately discard at the base of poles, deemed worthless.

Anyone with information about the Pennsylvania copper capers can contact Verizon Security at 412-633-4902 or the Pennsylvania State Police at 724-439-7111.  In other areas, if you discover suspicious activity, call 911.

The money and utility service you save may be your own.

[flv]http://www.phillipdampier.com/video/KDKA Pittsburgh WALA Mobile Copper Thieves 5-10.flv[/flv]

KDKA-TV in Pittsburgh covered an earlier copper theft of Verizon wiring and WALA in Mobile ran a very similar story about copper thieves plaguing AT&T.  (4 minutes)