Verizon Wireless announced Monday it will pay a dividend of $8.5 billion to owners Verizon Communications and Britain’s Vodafone Group PLC, by the end of the year.

Together with an earlier dividend paid in January, an extremely profitable Verizon Wireless will return a combined $18.5 billion to investors in 2012.

Verizon Communications, owner of Verizon landlines and fiber optic network FiOS, owns 55 percent of the wireless operation. Britain-based Vodafone Group owns a 45 percent minority interest. Verizon Wireless, like many U.S. corporations, has used excess cash to pay down or refinance debt at historically low interest rates, reacquire stock, or pay dividends to shareholders in lieu of major infrastructure and hiring expansion.

Verizon Communications needs its share of the wireless dividend to help cover dividend payouts to its own wired shareholders. Verizon Communications has been unable to command the kind of high profit margins its wireless counterpart has succeeded in delivering to investors.

Lampert

Two twenty-something cell phone salesmen in Florida will be looking for work — and lawyers — after police say the two stole risqué pictures off a woman’s cell phone and then shared them with each other and at least one customer.

Officers arrested Gregory Lampert and are waiting for the other employee, Joshua Stuart, to return from vacation.

Authorities say Stuart offered to assist the Bartow-area woman with moving her photos and contacts from an old damaged cell phone to the one Verizon Wireless reseller Cellular Sales just sold her.

But investigators say Stuart ended up keeping the old phone and transferred copies of her pictures for himself. Unfortunately for the victim, a waitress at a nearby restaurant, several of the photos depicted her in various states of undress. Stuart allegedly shared what he called “the banging” pictures with at least one co-worker and a customer.

That customer happened to recognize the woman in the photographs and promptly told her. The victim filed a police report which launched the investigation by the Bartow Police.

Police later executed a search warrant at the Verizon store, seizing a laptop computer and two cell phones later found to contain pictures taken from the victim’s phone. Lampert later confessed he received copies of the images from Stuart and admitted to “stealing nude pictures” from another customer’s phone. Lampert is now charged with two felonies — dealing in stolen property and offenses against computer users and a misdemeanor count of theft.

Dhiman Bhattacharjee, owner of iPhone Repair of Lakeland told WFTS-TV customers should consider backing up and restoring data between phones on their own — a process made increasingly easy by cloud storage backup services offered by major wireless carriers.

“Whenever we transfer data, we always do it in front of our customers,” Bhattacharjee said. “A lot of times we’ll have a customer bring their own laptop or their PC or Mac and we’ll help them transfer or make a backup of their phone,” he said.

Another common sense tip: don’t take or record images on your phone you would be embarrassed about if others saw them. If you can’t help yourself, make sure to delete or move them before taking your device to a third party.

Verizon Wireless is reportedly very unhappy about the incident. The store in question is owned and operated by a third party reseller, and is not owned by Verizon outright. But Verizon’s name is prominently displayed inside and outside the store. Verizon told WFTS they intend to hold both the employees and the store accountable for violating customer privacy.

A spokesman for Cellular Sales of Knoxville, which runs the Bartow store, told the station they were extremely shocked by what happened and are “working like crazy to ensure it never happens again.”

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WFTS in Tampa covers the story of what can happen to your personal photos when unscrupulous technicians decide to make copies and share them with others.  (2 minutes)

Verizon’s flooded headquarters on West St., lower Manhattan (The Wall Street Journal)

As cleanup efforts continue across New York, New Jersey, and Connecticut, some of America’s largest telecommunications companies are coming under increased scrutiny for being caught flat-footed after Hurricane Sandy roared across the tri-state region, causing damage Verizon’s chief technology officer now admits is worse than 9/11.

As of this morning, Verizon Wireless’ network is reportedly straining, particularly in Manhattan and Brooklyn, where cell service that worked immediately after the storm is now increasingly failing.

Verizon said 94% of its cell sites were operational after the storm, but some local officials in the area believe 94% of Verizon’s wireless network has now failed them when they need it the most.

Many telecom companies, particularly AT&T, are being criticized for excessive secrecy about the ongoing state of their networks post-Sandy. AT&T, which left its customers in the dark about service restoration as late as last night while asking customers to contribute $10 to the American Red Cross, finally mass e-mailed customers a statement devoid of much detail signed by Steve Hodges, president of AT&T’s northeast region.

“Restoring our wireless network is our top priority,” Hodges writes. “The vast majority of our cell sites in the Northeast are online and working. We are working issues in areas that were especially hard-hit, where flooding, power loss, transportation and debris all pose challenges. Our crews are working around the clock to restore network service to areas that were impacted by the storm. We will not stop until we repair all of the damage to our network and restore service back to its full capacity.”

The Federal Communications Commission correctly predicted the situation with mobile phones could get worse before it gets better, as backup power wears down and flooding persists. At a press conference held yesterday, FCC chairman Julius Genachowski revealed at least a quarter of all cell sites in areas damaged by Sandy were not operational. Those numbers were less optimistic that those provided by carriers.

The FCC this week activated the Disaster Information Reporting System, a central reporting point for telecommunications companies to update the agency regarding outages and other service disruptions. The FCC also alerted providers that in emergency circumstances, they can assist companies getting fuel for generators and help locate portable cell tower equipment for companies caught unaware.

AT&T’s belated letter to customers affected by Hurricane Sandy

Some may need the help.

New York State Assemblyman Alec Brook-Krasny and Brooklyn Borough President Marty Markowitz both reported Verizon Wireless’ outages are worsening in Brooklyn and midtown Manhattan.

Brooklyn Borough president Marty Markowitz

The Federal Emergency Management Agency (FEMA) today told Sen. Chuck Schumer the federal agency will reimburse New York for 100 percent of the costs incurred restoring power across the storm areas. But that may not expedite how quickly power returns.

Power restoration is expected to bring most cell towers back online. Worsening service is being attributed to battery backup or generator equipment exhausting on-hand fuel supplies, which usually keeps service up and running for up to three days. That means cell towers without power and unreachable by workers will have begun failing late Wednesday into today.

Damage assessments are further behind in New Jersey, the state that took the worst impact from Hurricane Sandy.

Stop the Cap! obtained some new figures from cell phone companies regarding the state of their networks:

• Verizon: Still holding to 94% operational in storm areas;
• AT&T: Declined to comment except to say “the vast majority” of their network is operational;
• T-Mobile: 80% operational in NYC, 90% operational in Washington, D.C.
• Sprint: 75% operational

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Verizon’s critical network takes another hit. “We’ve been here before,” says one Verizon executive, referring to the destruction from the 9/11 terrorist attacks which severely damaged the same facility on West Street now flooded out. (3 minutes)

Our readers report that cell service becomes spotty to non-existent in coastal New Jersey and Connecticut. In Manhattan anywhere south of 29th Street, readers report almost no signals at all.

Verizon’s damaged facilities include those on West and Broad Streets in Manhattan (circled).

Residents are trading tips about “magic spots” where cell service does suddenly pop up, and Gizmodo notes the only place in Alphabet City (the east side in southern Manhattan) to get service is on literally one street corner, where crowds congregate to make and receive calls.

The other salve for telecom withdrawal is the nearest pay phone.

Amusing stories of 20-somethings waiting in long lines only to be confounded by unfamiliar pay phones are appearing in the New York media. One radio station even aired basic instructions for members of the Millennial Generation that have never heard of inserting coins into telephones.

The biggest challenge for the city’s pay phone vendors is clearing them of coin overloads, something unheard of before the storm.

The often maligned pay phone has exposed the limits of the “more advanced” and expensive networks that were supposed to replace them. Despite claims of superiority for wireless service, northeast residents have once again discovered it has its limits:

• They don’t work during major weather events that knock out power and limit access to maintain backup generators;
• Cell networks are less capable of handling large call volumes, a problem made worse when cell phone refugees in other areas seek out remaining cell signals, further congesting the network;
• Wireless is just as susceptible to wireline or fiber failures on the ground. Cell towers typically connect to providers through wired backhaul circuits, which knock out cell service if they fail;
• Cell phone users need power to recharge their power-hungry smartphones. Batteries drain even faster searching for a weak or non-existent cell signal;

Hardest hit remains Verizon, which allowed reporters access inside damaged facilities to help New Yorkers better understand the scope of the problem.

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The Wall Street Journal takes a look at the state of the wireless communications networks across the northeastern U.S. and when service will be back.  (4 minutes)

Eleven years after the 9/11 terrorist attacks that took out Verizon’s West Street office when buildings collapsed at the nearby World Trade Center, Verizon is likely going to have to re-learn some lessons about catastrophe management as flood waters recede.

Verizon has deployed this 53-foot Emergency Mobile Communications Center for use by the Nassau County Office of Emergency Management that provides Internet and phone service.

The Wall Street Journal was able to obtain access inside the damaged facilities, and the reporter covering the event was left somewhat stunned by the scope of the damage.

In the middle of organized, yet chaotic recovery efforts was Verizon’s chief technology officer Tony Melone who had seen enough to declare the damage worse than 9/11.

The pictures of several feet of muddy water from the nearby Hudson River covering the lobby of the company’s headquarters on West Street said it all. The mostly salt water was an unwelcome guest in Verizon’s building, especially considering the five level basement below the lobby contains critical cables and telecommunications equipment. Almost four of those basement floors were completely flooded. After the water was pumped out, dampness and leaves from nearby trees remain littered on the floor.

One lesson learned after 9/11 was not to place critical phone switches below ground level. After reconstruction, the switches were moved to a higher floor and consequently were left undamaged. But while Verizon moved its backup generators upstairs, it left the pumps and fuel tanks that power them in the basement — leaving them inoperable.

This morning, passersby on West Street have to step around Verizon’s network of generators now running outside of the building, right next to large temporary fuel tanks to power them.

Verizon central offices in other parts of Manhattan, particularly further southeast on Broad Street, were never upgraded and are in worse shape, with electrical equipment damaged perhaps beyond repair. The force of the water was strong enough to bend the 86 year-old steel and bronze doors. Workers there are still trying to get water out of the building, shoving a pipe down an elevator shaft to facilitate pumping.

Verizon has some redundancy built into its network to protect its most valuable customers. That kept the landline phones working at the New York Stock Exchange, even though other landline and wireless customers will have  to wait longer for service to resume.

AT&T’s generator staging area near Meriden, Connecticut. (Credit: Brian Pernicone)

Some critics of the increasingly concentrated telecommunications landscape think Verizon and other companies have still not learned enough to prevent the kinds of service disruptions that will leave some customers without service for weeks.

It is hard to miss the bustle outside of Verizon’s offices damaged by the storm, watching flood water drain down the street. But things are murkier at cell phone providers who have been less than forthcoming about specific outage information and service restoration assessments.

Some have advocated the federal government step in and require cell phone service, now deemed essential by an increasing number of Americans, be protected with robust backup solutions to keep service up and running after catastrophic weather events.

After Hurricane Katrina, the FCC in 2007 tried to issue new rules that required a minimum of eight hours of backup power for all cell sites. The industry balked, predicting it would lead to “staggering and irreparable harm” for the cell companies. One wireless trade association warned their members might take several cell sites down if they were forced to provide backup power.

The CTIA Wireless Association and Sprint-Nextel sued the agency in federal court and the Bush Administration’s Office of Management and Budget eventually killed the proposed regulations.

T-Mobile and AT&T have cut an emergency deal to share their cellphone networks in areas affected by Superstorm Sandy. They’re trying to make it a little easier for customers to get a signal as carriers restore their networks. Some say companies should be forced to make their networks more resilient. National Public Radio’s Morning Edition has the story. (November 1, 2012) (3 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.

Extensive flooding caused by Hurricane Sandy swamped the ground floor of Verizon’s headquarters at 140 West St. in lower Manhattan.

Verizon Communications, the largest telecommunications company in the northeast, has been trying to assess the widespread damage to its wireline, fiber, and wireless networks but remains hampered by major damage to its own operations centers and leftover flooding in coastal areas.

Verizon’s headquarters in lower Manhattan on West Street had several feet of water on the ground floor Monday night. At noon today, Verizon called conditions below 39th Street in lower Manhattan “bleak” because of flooding. Verizon’s network technical facilities received extensive damage in the area, and some facilities had water high enough in basements to damage backup power equipment. The company spent the last day just pumping flood water out of their facilities in the area and is now bringing in new generators to power buildings and restore service.

The venerable landline, now considered a relic by a growing number of Americans, may prove to be the hardy survivor of Hurricane Sandy, holding up well in areas upstate and in parts of New York City where spotty cell service has left residents doing the unthinkable – lining up in front of working pay phones.

With cell phone batteries all but dead and power restoration likely to take days if not weeks, Verizon’s self-powered landlines that survived the storm are holding up, even if customers’ memories are not.

“The good news is the payphones that are still left are working, the bad news is who can remember anyone’s phone number anymore?” says Stop the Cap! reader Richard, who has been without power since Monday night. “Cell phone contact lists don’t help much until you can recharge your phone.”

Several New Yorkers are joining Richard looking for community centers and public libraries with working electrical outlets to recharge cell phones while catching up with e-mail on computer terminals that still have Internet access. Some boroughs remain virtually cut off from the rest of New York with roads, tunnels, bridges and public transport only gradually reopening on a limited basis.

Verizon called conditions south of the Garment District in lower Manhattan “bleak.”

Verizon’s Satellite Solutions Group is sending several emergency mobile communications vehicles to New Jersey and New York this evening to provide communications services to the impacted region. The disaster recovery fleet is completely self-contained and does not require any commercial power to operate. The mobile vehicles offer voice, data and Internet connectivity as well as charging capabilities for mobile devices.

“Sandy has left a trail of destruction throughout the Mid-Atlantic and Northeast, with historic flooding in New York and New Jersey and a hurricane-fueled snowstorm in southwest Virginia and western Maryland,” said Bob Mudge, president of Verizon’s consumer and mass business division.  “We are asking the public to remain focused on staying safe as there may be dangerous conditions such as fallen trees or power lines.  Our dedicated employees – from technicians to customer service consultants – run to a crisis and will continue to do what it takes to put customers back in touch.”

For that to happen, Verizon is waiting for electric utilities to get service back up and running. The company suspects most of its problems are related to electric service interruptions that will resolve once power is restored. But in lower Manhattan and along the coastline, more significant damage is likely to take longer to repair.

Verizon facilities in lower Manhattan, Queens and Long Island have received major damage from severe flooding, interrupting commercial power and rendering backup power systems inoperable.  In some cases, Verizon teams have not been able to access the sites, due to flooding and safety concerns.

As battery backup and generated power fails, additional central offices could lose service until Verizon crews can reach those facilities. Where flood waters have wreaked havoc with Verizon’s equipment, it could take a week or more to restore service. In such cases, it’s crucial to consider hiring a water damage restoration service to expedite the recovery process. For detailed information on water damage restoration, please see page.

Verizon Wireless service is reportedly in better shape, with 94% of cell sites still working, according to the company.

But with heavy call volumes and interruptions to Verizon’s backhaul connections which connect cell towers to Verizon’s network, having good reception is no guarantee customers will be able to complete calls or receive them.

Many New Yorkers report outgoing calls go nowhere and incoming calls go straight to voicemail, even with phones powered on.

Other Verizon notifications affecting customers across the northeast:

“All circuits are busy” or “Your call cannot be completed at this time”

Some Verizon customers in the Mid-Atlantic and Northeast region of the U.S. may receive a message of “All circuits are busy” or “Your call cannot be completed at this time” when trying to make a call. This is due to an unusually large volume of calls in the network as a result of Hurricane Sandy. Our engineers are working to accommodate this additional call volume. We apologize for any inconvenience this has caused.

Shipment Delays

As storm related transportation disruptions clear, Verizon customers will begin to receive shipments of routers, set top boxes and cabling. However, there may continue to be delays in completing deliveries due to road conditions. We will continue to process orders and ship equipment to our customers as quickly as possible.

Need to Report An Electric Outage or Check on the Status of Repairs in Your Area?

Verizon Communications is on high alert to monitor the potential impact of Hurricane Sandy on the company’s landline, FiOS, and wireless networks — primarily from line damage and extended power outages that could come as a consequence of the slow-moving Category 1 hurricane. Top wind speeds from Sandy have been upgraded this morning to 90mph, making the storm’s impact even more severe for residents along the Atlantic coastline.

Verizon retail outlets are stocking up on car phone chargers and universal charging devices to help customers who endure extended power outages, but some retail stores may close early or stay closed if local weather conditions warrant.

Non-essential construction projects and internal training programs have been suspended so the company can focus on network repairs, as needed.

Verizon wireline and wireless business units have activated national and regional command and control centers, enabling Verizon operations teams to monitor the storm’s progress and company operations, including network performance. Verizon has established communications with power and other service providers to ensure proper coordination in the event of storm damage. The company also has contacted vendors and other outside partners so that critical communications equipment and supplies can be prioritized, stocked and shipped as needed.

Company equipment — including poles, fiber-optic and copper cable, portable cell sites that can replace a damaged cell tower and mobile emergency generators that can be used when local electrical power fails — is being staged in and around the mid-Atlantic and Northeast regions.

Verizon is the dominant phone company and wireless provider in the northeastern U.S.

In addition, Verizon managers are communicating the company’s storm preparation efforts and coordinating pre-planned response activities with the public-safety community, as well as state, county and municipal agencies along the East Coast and the Midwest.

“Verizon Wireless stands ready to serve our customers, and I urge everyone first and foremost to stay safe,” said Dan Mead, president and CEO of Verizon Wireless. “We live and work in the towns and cities in the storm’s path, and we are dedicated to keeping our friends, families and neighbors connected in times like these. We prepare for situations like this year-round, and pride ourselves in our ability to be there for our customers when they count on us most.”

As Sandy’s track came more into focus, the company began communicating with its customers on Friday, posting consumer tips on various company websites, issuing a news release to media outlets in the threatened region and nationally, engaging customers through social media such as Twitter and Facebook, and sending emails to consumers, with key links for troubleshooting and reporting service problems.

Bob Mudge, president of Verizon’s Consumer and Mass Business division, said: “In addition to communicating with customers and ensuring that we will be working to keep the network operating and responding quickly to issues as they arise, we have reminded our employees of the need to work safely, be alert, and help our customers in any way they can. But our people know this well and are at their best in these critical situations when our customers depend on us the most.”

Mudge noted that even though Verizon technicians may be ready to repair storm-damaged Verizon facilities, they may have to wait for approval from local power companies, first-responders or law enforcement before beginning restoration work.

Customers may contact Verizon online at www.verizon.com/outage to report any wireline service-related issues; or call 1-800-VERIZON (1-800-837-4966). Business customers are advised to contact their regular customer service centers or account teams as needed.