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Dish Nears Deal to Acquire Boost Mobile, Clearing Path for T-Mobile/Sprint Merger

Dish Network Corporation is in the final stages of talks to acquire assets that include valuable wireless spectrum and Sprint’s Boost Mobile brand for an estimated $6 billion, according to a report quoting anonymous sources published by Bloomberg News, clearing the way for the Department of Justice to approve the merger of T-Mobile and Sprint.

Dish could announce a deal as soon as this week, but sources caution the talks are still ongoing and a deal might still fall apart. A spinoff of Boost is reportedly essential for the Antitrust Division at the DoJ to approve the merger, because the regulator reportedly wants to preserve four national wireless carriers to protect wireless competition in the United States.

Dish has already warehoused extensive wireless spectrum, much of it potentially valuable for the future deployment of 5G wireless networks, but Dish has historically held its spectrum without launching any significant wireless operations. If Dish does acquire Boost, the deal will come with a pre-existing contract allowing the prepaid Mobile Virtual Network Operator (MVNO) to continue to use Sprint’s network to service its customers. Dish would also receive a portion of spectrum held by T-Mobile and/or Sprint with which it could build its own wireless network, but that would require billions in new investments from a satellite TV provider already under financial stress from the impact of cord-cutting.

At worst, the transaction could allow Dish to increase its spectrum holdings while running Boost’s existing prepaid wireless operation as-is, dependent entirely on Sprint for connectivity. If the merger is successful, T-Mobile plans to mothball a significant portion of Sprint’s CDMA wireless network, which could eventually force Boost to find a new host for its wireless services.

Wall Street analyst MoffettNathanson remains skeptical about the T-Mobile/Sprint merger and is even more puzzled by Dish’s reported involvement. The analyst firm released a research note to its clients warning the future of Boost may be bleak:

We’re not sure why that deal is sensible for anyone involved. Dish, remember, already has more spectrum than they know what to do with; what they lack is money and ground facilities, and the deal described on Friday wouldn’t deliver either one. Instead, it would make both problems worse. And while Boost would help provide a baseline revenue stream in return for an upfront purchase price, the fit between Boost and Dish is, at best, superficial. Yes Boost serves a budget conscious consumer, as does Dish Network’s satellite business, but Boost is a mostly urban brand and Dish’s satellite business is an increasingly rural one.

And, more urgently, Boost’s distribution poses a huge problem. Historically, Boost was heavily dependent on Walmart for retail gross additions, but they’ve since lost that distribution channel. They would also, presumably, lose distribution through Sprint-branded stores (and even if, as a condition of the deal, they didn’t, does anyone think that Sprint/T-Mobile store employees would direct any volume to a spun off Boost brand?) That would leave Dish with the brand that has a churn rate as high as 5% per month to be spun off with an inadequate distribution front end, and with no realistic path to replace that front end before the subscriber base was, well, gone.

BTIG’s Walter Piecyk appeared on CNBC Monday to warn investors they are being too optimistic about the T-Mobile/Sprint merger’s chances of being approved. He puts those chances at “less than 50-50.” (5:38)

In contrast, Dade Hayes, contributing editor at Deadline, believes the deal will ultimately win approval from the Department of Justice. He talks to Cheddar about what T-Mobile and Sprint are doing to win over regulators. (8:14)

Google Fiber Expansion in North Carolina Draws Complaints from Angry Neighborhoods

Phillip Dampier June 18, 2019 Consumer News, Google Fiber & Wireless, Video No Comments

Third party contractors hired to install fiber optic infrastructure that will deliver Google Fiber internet service in parts of North Carolina are getting an increasing number of complaints from frustrated residents upset with the pace of the work, the mess it creates, and disruptions caused when crews accidentally damage existing utilities.

In Cary, construction crews are testing the patience of residents on Kilarney Drive, who have endured multiple power outages caused by Google’s contractors digging up the streets in the area.

In one neighborhood, crews removed a section of a sidewalk and installed a utility cabinet in its path. In others, cabinets were installed on the wrong side of the street. In some areas, Google’s contractors are still experimenting with shallow dug fiber installations. Some residents reported they unearthed their underground Google Fiber connection after raking their lawns. Others claimed their home’s water service line was cut by construction crews. Last winter brought multiple outages when snowplows dragged up fiber lines buried just an inch or two into the pavement and held in place with foam.

This summer’s service disruptions are coming at inopportune times, Cary residents complain. Recently, crews mistakenly cut through cables providing power, phone, and cable service, knocking out power for four hours and cutting off air conditioning on a 92 degree day.

Watching the crews slowly move through the neighborhood also has some residents concerned.

“It took them a week or two to do a couple hundred yards,” Cary resident Ed Fillback told WRAL-TV. “How long is it going to take to do the town?”

Google Fiber officials shared a response to the disruptive work in a prepared statement.

“Building a brand new fiber network is a big and complex project, and we’re sensitive to the impact construction has on a community. We want to be good neighbors, and do everything we can to minimize disruption, respond to residents, and resolve issues quickly.”

WRAL in Raleigh reports neighborhood frustration with Google Fiber’s buildout in North Carolina is growing. (2:56)

Montana’s 3 Rivers Communications Getting Out of the Cable TV Business On Oct. 31

After years of increasing costs for video programming, the disadvantages of not being large enough to qualify for lucrative volume discounts, and a declining customer base, a Montana cooperative says it is calling it quits on cable television service later this year to focus on its broadband business.

3 Rivers Communications, a rural telecommunications cooperative based in Fairfield, Mont., this week announced it was discontinuing television service on Oct. 31, 2019, inviting its members to choose a streaming TV provider (DirecTV Now, YouTube TV, etc.) instead.

The co-op serves 15,000 customers across two significant service areas in Montana. Only 1,800 still subscribe to cable television service — a number that has dropped steadily since the introduction of streaming TV alternatives. Most cable networks and local stations charge a sliding scale fee to carry their programming, with substantial volume discounts offered exclusively to large providers like Comcast, Charter, AT&T, DirecTV and Dish Networks. Small, independent companies are at a disadvantage because they must charge substantially more to cover their higher wholesale costs. Many have attempted to mitigate these high fees by pooling resources and buying programming through a national cooperative, but even that arrangement cannot keep costs low enough to prevent subscribers from canceling service after each rate increase.

Local TV station rate inflation, along with sports programming price hikes, have made offering cable television untenable for a growing number of small cable operators. As an example, 3 Rivers customers in Big Sky pay $32.99 for a basic cable TV package of 23 channels, including C-SPAN, Local Access, three religious networks, three home shopping channels, and around a half-dozen digital multicast TV networks. A comprehensive digital cable TV package costs $104.99 a month, just for television.

The 3 Rivers Communications television lineup for Big Sky, Mont.

In the last ten years, 3 Rivers has been focused on expanding its fiber to the home network, now reaching 65% of its customers. But the costs to provide service in rural Montana remain high, and internet packages remain costly. A 10 Mbps unlimited internet account costs $74.95/mo, 20 Mbps costs $94.95/mo, and 30 Mbps costs $114.95 (add around $10/mo for voice service). Offering television service originally boosted the average revenue received from each subscriber, but now that costs have skyrocketed, 3 Rivers now feels it should focus its investments on better broadband service.

“With all the new streaming options available, [including] Netflix and Hulu and Amazon Prime, in addition to traditional satellite providers like Dish and DirecTV, we just can’t really compete anymore,” 3 Rivers marketing director Don Serido told KRTV News. “We’re getting out of the TV business and we’re really going to focus on providing the best broadband we can to all of our cooperative members. That’s really what people want and need.”

Serido also said the company’s lack of support for pay-per-view and on demand programming also hurt its TV business. As a convenience to members, 3 Rivers is waiving all early termination fees and will continue to honor its promotional agreements until service is ended on Oct. 31.

The biggest impact will likely be felt by Montana TV stations that will lose retransmission consent revenue from 3 Rivers. Only a handful of streaming providers offer TV stations from the Great Falls market, forcing many cord-cutters to depend on on-demand viewing from services like Hulu and over-the-air antennas to pick up local stations.

As a member-owned cooperative, 3 Rivers returns all of its profits to members through capital credits. At the end of each fiscal year, the cooperative allocates a percentage of the margins to each patron on a pro-rata basis according to the total amount paid or produced for services. These allocations to patrons are known as capital credits. Upon approval of the Board of Trustees, these allocations are refunded to cooperative patrons. As a result, 3 Rivers has no incentive to overcharge its customers. Instead, it often invests its funds in improving service for its customers. When the cooperative was formed in 1953, it was the only provider of telephone service in north-central Montana. It has offered internet service for the last 20 years, with television only becoming a part of its menu of offerings a decade ago.

3 Rivers Communications will get out of the cable television business this fall, reports KRTV News in Great Falls, Mont. (1:05)

Antietam Broadband Under “Concerted Attack” to Bring Provider Down; Months of Outages Annoy Customers

Phillip Dampier June 5, 2019 Antietam Broadband, Consumer News, Video No Comments

For two months, Hagerstown, Md.-based Antietam Broadband, an independent cable company serving Washington County, has been facing an organized effort to bring its broadband business to its knees.

A series of prolonged service outages that the cable company characterized as a “multi-pronged concerted attack” affected both internet and voice service for 40-50% of its customers. A “malicious and targeted attack outside of our network” caused connections to slow, and in many cases stop, the company admitted. The attack flooded the company’s service delivery network with “more than one million malicious hits against our network every 5 minutes,” according to Antietam Broadband president Brian Lynch.

As a result, some customers have been without stable service for over a week at a time, and with the attacks continuing for at least two months, many are growing increasingly frustrated by the repeated outages.

“It has come on for an hour and then gone down again,” said Barbara Ewald of Hagerstown, telling the Herald-Media it was her 11th day of problems with her internet service. “I can’t keep crawling around to reset it. I’m not going to try to set it. It’s not my responsibility. We deserve better than this.”

Other customers have experienced outages up to a dozen times a day, depending on how sustained the attacks are on Antietam’s network.

Letter from Brian Lynch, President of Antietam Broadband.

“I’ve never seen anything like it,” Lynch said. “There’s an entity trying to interrupt communication. The way they’re doing it is very unique; it’s multi-pronged.”

Evidently not a traditional denial-of-service-disruption, Lynch won’t go into much detail about the exact nature of the attack, except to say it targets the company’s cable modems which manage voice and data service.

A recent public meeting at the Washington County Free Library attracted at least 80 local residents to complain about the state of Antietam’s service.

Penny Wolters of Hagerstown told the audience her son was unable to complete a college assignment in time and some of her bills were paid late because of the ongoing service disruptions. Other subscribers who telecommute or operate in-home businesses had to leave Antietam’s service area to find a reliable connection. Calls to customer service were met “with rudeness” according to several complaining customers. A representative told one customer she should be grateful the company offered her any service credit for an outage that had been a problem for over six weeks.

Even with the help of Cable Labs, CommScope/ARRIS and Zcorum, and security experts from around the country, the attacks continued, although they seem to be ebbing. But after two months dealing with the problem, a local grassroots group, “More Cable Options for Hagerstown” launched to find alternatives for Antietam.

“My goal is to give the citizens of Washington County a platform to discuss their frustration with Antietam Broadband,” organizer Cherish Marriott told the newspaper. “I’d also like to give them the tools and information on how to bring other service providers to the area.”

For Lynch, the priority has become repairing the damage to the company’s reputation.

“We want to personally apologize to our customers for the disruption and frustration these past weeks have caused in your life,” Lynch wrote on the company’s Facebook page. “We recognize the internet and phone services we provide are of the utmost importance to you. We would like to thank you for the support and patience you have shown us during this challenging time.”

WDVM in Hagerstown reports on the service outage issues that began in April. Hagerstown’s mayor wonders why the city apologized for the cable company’s problems. (1:31)

To address customer concerns, Antietam provided this recent update to customers:

  • “We have gone two weeks since the last event. We believe that the measures we’ve taken have been effective, and we are closely watching our network in case the attackers try again.”
  • “We are increasing the credit to residential customers from two to three weeks. Credits will be automatically placed on your bill. If you previously received two weeks of credit, on your next bill you will see the additional week of credit. These additional credits will include leased modems and/or routers provided by Antietam.”
  • “We have seen no evidence that the attackers had access to any customer data stored on our systems.”
  • “We will continue to stress test our networks to provide every safeguard available against further cyberattacks.”

Local organizers meet to discuss ongoing problems with Antietam Broadband and what alternatives exist. WDVM reports. (2:00)

RT and New York Times War Over 5G’s Possible Health Impacts

A war between RT, Russia’s external English language news channel and the New York Times over the health impact of 5G technology has given the telecom industry a new talking point: Claims that 5G signals are dangerous are nothing more than Russian fake news.

Generous news coverage about 5G deployment has brought out fringe critics claiming wireless mobile technology causes brain cancer, infertility, autism, heart tumors and Alzheimer’s disease. In some cities in the western U.S., mysterious “Public Health Warning” signs have been placed on utility poles, showing the alleged locations of future 5G cell sites. No one has come forward to claim ownership of the signs, and they are not the work of local officials.

The Times instead blamed the Kremlin’s state-sponsored news outlet RT for stirring up opposition to 5G. Reporter William Broad claimed RT had largely ignored 5G until this year, when it suspiciously aired seven stories about its health risks:

RT’s assaults on 5G technology are rising in number and stridency as the American wireless industry begins to erect 5G systems. In March, Verizon said its service will soon reach 30 cities.

RT America aired its first program assailing 5G’s health impacts last May, its only one in 2018. Already this year, it has run seven. The most recent, on April 14, reported that children exposed to signals from 5G cellphone towers would suffer cancer, nosebleeds and learning disabilities.

[…] The network is now applying its playbook against 5G by selectively reporting the most sensational claims, and by giving a few marginal opponents of wireless technology a conspicuous new forum.

RT’s Rick Sanchez devoted a substantial amount of time on a recent show attempting to refute a New York Times article that claimed Russia was trying to interfere with America’s 5G expansion using fear-mongering. (19:32)

The “Balaclava EMF Shield” is designed to protect you from ambient radiofrequency energy.

One RT host, Rick Sanchez, devoted 20 minutes of a recent show critiquing the Times story and expressing disappointment over the caliber of its reporting. Sanchez suggested the New York Times report was virtually an advertisement for Verizon and narrowed in on an admission near the bottom of the piece that the phone company and the newspaper are now business partners:

Wireless high-speed communication could transform the news industry, sports, shopping, entertainment, transportation, health care, city management and many levels of government. In January, The Times announced a joint venture with Verizon to build a 5G journalism lab.

Sanchez also sought to tie the push for 5G as another example of corporate influence over Washington, noting FCC Chairman Ajit Pai was a former lawyer for Verizon. He also tied 5G into the assault on net neutrality, without explaining why. For its part, the Times suggests, with little evidence, that RT is running a propaganda campaign against 5G to slow down its deployment in the United States, allowing Russia to leap ahead:

Even as RT America has worked hard to damage 5G, the scientific establishment in Russia has embraced a contrary and questionable position: that the high frequencies of 5G communications are actually good for human health. It recommends their use for healing wounds, boosting the immune system and treating cancer. Millions of Russian patients are said to have undergone such high-frequency therapies.

Beauty clinics in Moscow use these high frequencies for skin regeneration, according to a scientific study. One company says the waves can remove wrinkles and fight hair loss.

The back-and-forth arguments have now attracted Washington’s attention, and some in Congress want to hold hearings about a reputed “disinformation campaign” run by Russia against 5G technology. Wireless carriers will welcome such hearings, allowing them to further argue for deregulation of cell placement rules and other zoning matters and claim the U.S. is falling behind in the global 5G race. It is also much easier to dismiss objections to 5G as Russian fake news than to finance a team of experts to counter those claims.

Lost in all of this is the original question about the risks of 5G technology. Much of the health an d safety opposition to wireless technology began long before the concept of 5G was unveiled. Some parents have opposed in-school Wi-Fi as medically harmful. Others fear traditional 3G or 4G radiofrequency energy, which some claim (without substantial evidence) causes cancer.

The health impacts of 5G have not been definitively proven, and it will be important to distinguish between different flavors of 5G to even consider the question. Millimeter wave 5G networks that depend on small cells those signs affixed to utility poles warn about operate at very high frequencies with very low power. No person will likely be within 10-15′ of a small cell because they will be erected on top of utility poles. They also emit a very short range signal unlikely to penetrate walls of buildings, much less your brain or vital organs. The other version of 5G will be placed on existing cell towers and will be no more harmful than 3G or 4G. If one fears radiofrequency energy, they are much more likely to get a large dose of it driving past (or living by) an AM, FM, or TV transmitter that operates at much higher power.

KOIN-TV in Portland, Ore. reported the sudden appearance of ‘Public Health Hazard’ signs warning of the risks of 5G. But are the signs for real? (2:31)

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