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Sprint Shutting Down Virgin Mobile; Remaining Customers Being Switched to Boost Mobile

Phillip Dampier January 7, 2020 Boost Mobile, Sprint, Virgin Mobile 1 Comment

Sprint’s prepaid mobile division

Sprint will be closing down its prepaid Virgin Mobile service in February and will shift customers to its Boost Mobile brand instead and drop its standalone Mobile Broadband service.

The wireless company has virtually ignored Virgin Mobile at least as long as Sprint has been in negotiations to merge operations with T-Mobile USA. The Virgin Mobile website has also been neglected, with no media releases for almost two years and over two years of unchanged rates. Last October, Sprint dropped its last major retail arrangement with Walmart that allowed Virgin Mobile devices and airtime to be sold in Walmart stores. Best Buy and several grocery chains ended sales of Virgin Mobile devices even earlier. As of late last year, new customers could only sign up for Virgin Mobile through its own website, a sure sign Sprint was prepared to accept customer attrition and was likely to pull support for the prepaid brand.

Sprint inherited Boost Mobile after it acquired Nextel in 2005. Boost Mobile had offered its own prepaid service over Nextel’s push-to-talk network beginning in 2001. After Sprint shuttered Nextel’s network, it operated both Virgin Mobile and Boost Mobile on Sprint’s network as competing prepaid wireless services. In the last two years, Sprint apparently decided it only needed to support a single brand, and quietly began shifting its marketing exclusively towards Boost.

This week, Sprint confirmed it was shutting down the Virgin Mobile brand in the U.S. in a prepared statement.

“We regularly examine our plans to ensure that we’re offering the best services in line with our customer needs. Beginning on the week of Feb. 2, we will be moving Virgin Mobile customer accounts to our sister brand Boost Mobile – consolidating the brands under one cohesive, efficient and effective prepaid team. In most circumstances, customers can keep their current phone and will receive a comparable or better Boost Mobile service plan with no extra cost.”

The transition will strand Virgin Mobile Broadband and Broadband2Go customers that use a standalone device for mobile broadband service, often used by RV-traveling customers or those in rural areas. Sprint has decided that Boost Mobile will not serve those customers, so mobile data service provided over standalone hotspot devices will end next month.

An FAQ on Virgin Mobile’s website provides some other insight:

Customers were notified in early January about the decision to discontinue Virgin Mobile USA service plans. At that time, we informed customers of the transfer to Boost Mobile. In most instances, your existing account will be transferred to Boost Mobile with your device, and a comparable or better Boost Mobile service plan at no extra cost to you. You will keep your phone number, and your monthly payment date will remain the same as long as you continue on time payments until the transfer to Boost Mobile is complete.

At this time, paying for your service through your PayPal account will not be supported on your new Boost Mobile account and therefore, Paypal will be removed as a registered payment vehicle 4-5 days prior to the migration date. Customers enrolled on a payment method or AutoPay with PayPal accounts will need to re-establish payment options and re-enroll in Autopay using a major credit/debit card. Boost Mobile also does not accept 45/90 Day Top Up Payment Option for service payments. Customers enrolled in 45/90 Day Top Up Payment option will need to re-establish payment option and re-enroll in a Low Balance Autopay option using a major credit/debit card prior to transition in order to avoid service interruption. If your account is impacted by either of these payment methods, we will notify you with instructions for how to make changes prior to transfer date in order to avoid service interruption. Please note the Texas LIDA credits will no longer be issued following transfer to Boost Mobile.

  • Taxes and fees will now be INCLUDED in your new Boost Mobile plan.
  • 6,800 Boost Mobile locations nationwide for your convenience.
  • 99% nationwide coverage with voice roaming.
  • Boost Perks, a reward program exclusive to Boost Mobile customers.

If you have a Mobile Broadband (MBB) device, this device and service will not transfer to Boost Mobile.

In order to avoid service interruption for your MBB, you will need to switch your service to a new provider. If you choose to consider Boost Mobile, please visit Boostmobile.com or your nearest Boost Mobile store for information and current promotions.

The wind down of Virgin Mobile may also serve as a bit of housekeeping as Sprint prepares to merge with T-Mobile. A condition of that merger is spinning off Sprint’s prepaid services including Boost Mobile service to DISH Network to create another viable national wireless carrier to protect competition. Dropping Virgin Mobile now is likely to provide an easier transition for DISH, which would launch operations with a combination of Virgin Mobile and Boost Mobile customers.

FCC, Wireless Industry Take Aim At C Band Satellite Spectrum for 5G

Phillip Dampier September 9, 2019 Public Policy & Gov't, Video, Wireless Broadband No Comments

A major battle between satellite owners, broadcasters, and the telecom industry has emerged over a proposal to repurpose a portion of C Band satellite spectrum for use by the wireless industry.

Multiple proposals from the wireless and cable industry to raid C Band satellite frequencies for the use of future 5G wireless networks suggest carving up a band that has been used for decades to distribute radio and television programming.

Before the advent of Dish Networks and DirecTV, homeowners placed 6-12′ large rotatable satellite dishes in backyards across rural America to access more than a dozen C Band satellites delivering radio and television programming. Although most consumers have switched to much smaller fixed satellite dishes associated with Dish or DirecTV, broadcasters and cable companies have mostly kept their C Band dishes to reliably receive programming for rebroadcast.

Now the wireless industry is hoping to poach a significant amount of frequencies in the C Band allocation of 3.7-4.2 GHz to use for 5G wireless service. Competing plans vary on exactly how much of the satellite band would be carved out. One plan proposed by Charter Communications and some independent cable companies would take 370 megahertz from the 500 megahertz now used by C Band satellites and sell it off in at least one FCC-managed auction to the wireless industry. A more modest plan by an alliance of satellite owners would give up 200 megahertz of the band, allowing wireless companies to acquire 180 megahertz of spectrum. To reduce the potential of interference, both major plans offer to set aside 20 megahertz to be used as a “guard band” to separate satellite signals from 5G wireless transmissions.

Satellite dish outside of KTVB-TV in Boise, Ida. (Image courtesy: KTVB-TV)

Much like the FCC’s repack of the UHF TV dial, which is forcing many stations to relocate to a much smaller number of available UHF TV channels, most proposals call on the FCC to subsidize dislocated satellite broadcasters and users with some of the auction proceeds to help pay the costs to switch to fiber optic terrestrial distribution instead.

Broadcasters and satellite companies claim the cable industry proposal would leave U.S. satellite users drastically short of the minimum 300 megahertz of satellite spectrum required to provide radio and television stations with network programming. Many rural broadcasters have complained that the cable industry plan calling for a shift to fiber optic distribution ignores the fact that there is no fiber service available in many areas. Other objectors claim fiber outages are much more common than disruptions to satellite signals, putting viewers at risk of a much greater chance of programming disruptions.

With spectrum valued at more than $8 billion at stake, various industry groups are organized into coalitions and alliances to either support or fight the proposals. The Trump Administration has made it known it is putting a high priority on facilitating the development of 5G services to beat the Chinese wireless industry, which is already moving forward on a major deployment of next generation wireless networks. The FCC, with a 3-2 Republican majority, has signaled it is open to reallocating spectrum to wireless carriers for the rollout of 5G service. Unfortunately, much of this spectrum is already in use, setting up battles between incumbent users threatened to be displaced and the wireless industry, which sees big profits from acquiring and deploying more spectrum.

With serious money at stake, strains are emerging among some individual members of the different industry groups. Late last week, Paris-based Eutelsat Communications quit the largest satellite owner coalition, the C-Band Alliance. The move fractured unity among the world’s satellite owners, just as the FCC seems ready to move on a reallocation plan. Eutelsat will now lobby the FCC directly, reportedly because of concerns among shareholders that splitting off significant amounts of C Band spectrum is inevitable and could drastically reduce the value of Eutelsat’s share price. Eutelsat reportedly wants to independently participate in the FCC’s proceeding, potentially securing a larger amount of compensation from the FCC for the spectrum it will give up as part of a final reallocation plan.

Whatever compensation plan emerges will run into the billions of dollars. Satellite dishes will probably require new equipment to shield signals from interference, may require re-pointing to a different satellite (which could prove problematic for some equipment originally installed in the 1980s), and may even require the launch of additional satellites to provide more capacity in the newly slimmed C Band.

The FCC is expected to decide on the reallocation proposals this fall, with a signal repack likely to take between 18-36 months before the frequencies can be cleared for use by wireless operators.

Satellite owners, mobile carriers, and cable operators discuss reallocating part of the satellite C Band for use by 5G wireless networks. Sponsored by the industry-funded Technology Policy Institute. Sept. 3, 2019 (44:10)

Altice Launches Altice Mobile: $20 Unlimited Plan for Optimum/Suddenlink Customers, $30 All Others

Phillip Dampier September 5, 2019 Altice USA, Competition, Consumer News, Wireless Broadband 14 Comments

Altice USA today launched its nationwide mobile phone service, offering “lifetime unlimited talk, text, and data” for $20 a month for existing Optimum and Suddenlink customers, $30 a month for non-customers.

Altice has agreements with Sprint and AT&T to host its wireless service on both provider’s 4G LTE networks when customers are outside the range of a suitable Wi-Fi network. Altice’s plan is designed with pricing simplicity — $20 per line, up to five lines per account. A $10 activation fee may apply and prices do not include taxes, fees, and surcharges. The plan provides:

  • unlimited data, text, and talk nationwide (up to 50 GB data usage per month, after which speed is subject to throttling to 128 kbps for the rest of the billing cycle),
  • unlimited mobile hotspot (speed limited to 600 kbps),
  • unlimited video streaming (streaming video will play “at DVD 480p quality”),
  • unlimited international text and talk from the U.S. to more than 35 countries, including Canada, Mexico, Dominican Republic, Israel, most of Europe, and more, and,
  • unlimited data, text and talk while traveling abroad in those same countries.

Altice discloses customers connected to 4G LTE service should expect download speeds of 6-8 Mbps and upload speeds of 2-3 Mbps with “round-trip latency of less than 100 ms.” If you connect to a 4G LTE Advanced cell tower, customers can expect faster download speed of 12-30 Mbps. Altice does not allow customers to connect to 3G service and does not support 5G service at this time.

Altice claims its mobile plan can save customers up to $600 per year for one line, and up to $1,100 per year for households and families with five lines. It is also the first cable mobile plan that will accept non-customers, at a higher price. Non-Optimum or Suddenlink customers (or current customers who discontinue cable service or who fall seriously past due on their accounts) will pay $30 a line, a $10 premium.

Altice claims its mobile network welcomes customers bringing their own devices, and offers an online compatibility checker. But an FAQ claims Altice Mobile is currently only able to support iPhone for Bring Your Own Phone service. It must be iPhone SE, 6 or newer, and operate iOS 12.2 or above.

In contrast, Comcast and Charter both accept a wider range of devices and rely on Verizon Wireless’ 4G LTE network, but at a price of $12-14/GB or $45/month for unlimited talk, text, and data. Those two cable companies only sell mobile service to customers subscribed to their home broadband services.

Verizon Wireless Sues Rochester, N.Y. for Discrimination Over Forthcoming 5G Small Cells

Verizon Wireless has sued the City of Rochester, N.Y. in a potentially precedent-setting case, for demanding excessive and discriminatory fees to use public rights-of-way to deploy a fiber backhaul network and hundreds of small cells to support the introduction of 5G wireless service in the community.

The lawsuit, Cellco Partnership (d/b/a Verizon Wireless) v. City of Rochester seeks a declaratory judgment acknowledging that local laws regarding the use of rights-of-way by telecommunications companies have been largely overridden by the Trump Administration’s Federal Communications Commission. Under FCC guidelines, the maximum compensation rate a city can generally collect is $270 annually for each small cell site, far less than what the City of Rochester hopes to collect from telecommunications companies planning to dig up streets and place hundreds of small cell antennas on utility and light poles across the city.

The two parties are far apart on what defines fair and just compensation. In early 2019, the City of Rochester introduced a new fee schedule that seeks $1,500 annually for the use of each publicly owned utility or light pole, and $1,000 per standalone “smart pole” erected by a wireless company to support a small cell. Verizon Wireless wants to pay no more than $270 annually for either type.

The City also wants compensation to cover “administrative costs for retaining and managing documents and records,” “costs for managing, coordinating and responding to public concerns and complaints,” and “the costs of the City’s self-insurance.” Verizon Wireless’ attorneys argue that the FCC’s “presumptive limit” of $270 annually is all-inclusive, and therefore the fees requested are inherently unreasonable.

The City ordinance is also designed to discourage providers from installing cables on existing utility poles, preferring underground installation.

“Aerial installation of fiber or other telecommunications facilities and accessory equipment strung between poles, buildings, or other facilities, is strongly discouraged due to area weather, safety concerns, limited capacity, and aesthetic disturbances,” the ordinance reads. But Verizon Wireless argues the extra fees demanded by the City for underground burial of fiber optic cable are illegal under federal law.

“The Code’s ‘underground’ fee structure is not a reasonable approximation of actual cost, is not objectively determined, and is discriminatory,” Verizon Wireless argues.

The City’s fees for fiber optic cable installation are significant. Verizon Wireless’ lawsuit notes fees start at $10,000 for up to 2,500 linear feet of installed fiber optic cable, plus an additional $1.50 for each additional foot from 2,500-12,500 feet and $0.75 for each additional foot above 12,500 feet. After the first year, fees continue at $5,000 annually for up to 2,500 feet, $1 for each additional foot from 2,500-12,500 feet, and $0.50 for each additional foot above 12,500 feet. Somewhat lower fees apply if Verizon places its fiber cables in an existing conduit with other cables, or if it uses directional boring to place conduit and wiring without disturbing lawns, roads, or sidewalks.

Curtin

Verizon Wireless’ attorneys argue the fees cannot possibly reflect the City’s true costs because the charges are the same regardless if Verizon installed three feet or 2,000 feet of fiber optic cable.

But City Corporation Counsel Tim Curtin told the Democrat & Chronicle the city’s new fee schedule is comparable to what other cities are charging, and the City is planning more restrictions to keep providers from repeatedly digging up streets and yards to place new cable and equipment.

“This is a serious problem with people digging up the same right of way every other day and not repairing it,” Curtin told the newspaper.

The City is also exploring passing a new “dig once” policy that would incentivize providers to coordinate fiber installation to place wiring and equipment in a single shared conduit in return for lower fees. But providers like Verizon Wireless consider it in their competitive advantage to wire cities like Rochester before their competitors do.

“To better serve its customers and the City and to begin to serve new customers and provide new services, Verizon Wireless seeks to extend, densify, and upgrade its wireless network infrastructure [in Rochester], including to install additional Small Wireless Facilities to support the provision of current and next-generation telecommunications services such as 5G and to deploy fiber to connect these facilities. To successfully do this, Verizon Wireless requires new approvals from [the City of Rochester] to access City property,” Verizon’s lawsuit states. Because of the City’s fees and policies, “Verizon Wireless has been, and will continue to be, damaged and irreparably harmed, […] [including] an effective prohibition on Verizon Wireless’s ability to provide telecommunications services in the affected area of the City.”

In short, Verizon Wireless is threatening not to deploy 5G service in the area if the City successfully defends its fees and requirements.

Curtin argues Verizon Wireless is the only provider unwilling to comply with the City’s requirements, while others are moving forward under the new ordinance. One provider likely covered by Curtin’s claim is residential fiber overbuilder Greenlight Networks, which has installed fiber to the home service across several city neighborhoods for the past several years. But in 2019, Greenlight began focusing on installations in suburbs west of Rochester, and several city neighborhoods proposed for service have languished for years with “easements required” status, which could reflect Greenlight’s reluctance or ability to pay the City’s new fees.

Verizon has been the most aggressive wireless provider in Western and Central New York with respect to the proposed 5G service expansion. In addition to being the incumbent local telephone company in several New York cities (excluding Rochester), it has also offered spotty FiOS fiber to the home service in several suburbs of Buffalo and Syracuse.

A small cell

In contrast with Rochester, the City of Syracuse decided to effectively “partner” with Verizon Wireless to deploy 5G small cells to be considered America’s “first fully 5G city.” To win Verizon over, the City mothballed its existing fee policy in 2019 that charged $950 per small cell tower, resetting the rate to match the FCC’s presumed maximum of $270 annually. In return, Verizon has tentatively agreed to place up to 600 smart cell poles around the city, paying $162,000 a year. Verizon also agreed to pay a $500 application fee for each pole project (covering up to a maximum of five poles per project). Nobody is certain whether 600 smart cells are enough to saturate the city with 5G coverage, where exactly Verizon will ultimately place the small cells, or exactly when.

Ken Schmidt, president of Steel in the Air, a consultant to public and private landowners and municipalities on matters related to wireless infrastructure valuation, offered to advise the City of Syracuse for free about its agreement with Verizon Wireless, but the City never returned his calls, despite his direct experience working with other cities that negotiated with Verizon Wireless over 5G smart cells, pole attachment fees, and antenna placement rules.

“Syracuse seems to have bent over backward for Verizon,” Schmidt argues on his blog. “Make no mistake, there are benefits to becoming a 5G city, but this agreement does no more for Syracuse than it does for other cities where Verizon promised the same thing. At least some of the other cities didn’t enter into such a one-sided agreement. For example, SacramentoSan Diego and San Jose negotiated better terms and conditions than Syracuse did, and will have a similarly robust small cell deployment.”

Many consultants recommend that cities consider whether Verizon’s threats not to deploy 5G service are real, especially considering the company’s PR claims that moving forward with 5G is essential to Verizon’s network expansion.

Schmidt

Schmidt acknowledges the current FCC has a vested interest in helping large wireless companies deploy 5G infrastructure with a minimum of interference or fees from local governments.

“While the City could have negotiated a higher amount for the pole access rights or permit fees, it would have had to demonstrate that its actual costs in reviewing small cell applications and maintaining the rights-of-way were higher than the nominal fees allowed by the FCC,” Schmidt said.

Verizon’s lawyers appeared to outmaneuver the City’s attorneys by winning a number of concessions for Verizon that Syracuse will have to live with for up to 45 years. Schmidt’s recommendations may be useful to other cities, including Rochester, wrestling with these issues.

Schmidt:

Syracuse granted rights to Verizon for upward of 45 years when it didn’t have to. The city signed a master license agreement for 20 years, which allows Verizon to install poles under individual pole licenses that run up to 25 years from the date the pole was installed. Thus, if a pole is installed in year 20, it will be there for another 25 years. In short, the city is entering a possible 45-year agreement even though there is no legal requirement to do so by the FCC or any other agency. While Verizon surely prefers a much longer agreement, other cities are entering much shorter, 10-year agreements with Verizon. Verizon retained the right to terminate “at any time for any reason or no reason by written notice to the city,” but the city does not have the same right. So, the city is now committed to this specific agreement legally, regardless of what happens with technology in the future.

The agreement entered into by the city concedes unnecessary rights to Verizon under contract law. The agreement is substantially the same as other agreements proposed by Verizon to other cities. It attempts to incorporate many of the standards from the FCC Order into the license agreement. From a legal perspective, these clauses did not need to be in the license agreement. If Verizon felt the city was not adhering to the FCC order, Verizon by default has the option of requesting relief from the FCC or filing in federal court for injunction or damages. However, by adding the language in the license agreement, Verizon can now file in state court on a civil claim if Verizon believes the city is in breach of the agreement and collect monetary damages. This is absolutely of no benefit to Syracuse.

Other cities have received additional compensation in the form of public safety or “internet of things” monitoring and services, and higher fees to help pay for additional staff to review small cells applications. Syracuse received nothing. In fairness, the other cities are bigger and more important to Verizon than Syracuse. Nonetheless, the only concession Verizon appears to have made to Syracuse is the requirement for Verizon to monitor a limited set of small cells for compliance with applicable radio frequency emission standards. Verizon did not commit to deploying a certain number of small cells by any date. It is not required to deploy in the poorer areas of the city. And it did not commit to smart city initiatives or research on how 5G can benefit the residents of Syracuse.

The agreement gives the city limited rights to terminate, even if health risks are identified and proven. The city, in what appears to be an effort to appease its citizens that small cells are safe, inserted language that requires Verizon to test up to 5% of the small cells annually to confirm that they meet the minimum applicable health, safety and radio frequency regulations. The city could also test on its own, but only to confirm compliance with applicable FCC standards. By agreeing to a long-term license with limited rights to terminate, the city could be legally committed to Verizon small cells in the public right of way even if there is ample evidence that they should be removed, unless the FCC revokes its order.

By agreeing to such a one-sided agreement, the city has condemned itself to agree to similar agreements with any company providing wireless services who want to deploy in the right-of-way. Under the FCC Order and previous case law regarding the Telecommunications Act of 1996, the city may not discriminate between similar providers of wireless services. By agreeing to the terms with Verizon, the city will have a difficult time agreeing to different terms with other providers.

Reuters: DoJ Ignored Bid from Charter Communications to Acquire T-Mobile/Sprint Assets

NEW YORK (Reuters) – Charter Communications submitted a proposal to the Justice Department to buy telecom assets being sold under the T-Mobile US and Sprint Corp combination, but never heard back from the agency, three sources familiar with the matter said.

U.S. officials decided to accept a deal to sell assets including Sprint’s Boost Mobile brand to satellite TV provider Dish Network to resolve antitrust concerns, ending extensive talks on a merger the Justice Department is expected to approve this week.

The Justice Department’s lack of response to Charter could raise concerns among critics of the $26.5 billion merger of wireless carriers T-Mobile and Sprint that officials did not weigh all divestiture offers before deciding on a deal with Dish.

Details of the proposal were not immediately known, but sources said this week Charter had requested that there be an auction process for the divested assets.

The Justice Department declined to comment. Charter was not immediately available for comment.

Ten state attorneys general, led by New York and California and including the District of Columbia, filed a lawsuit on June 11 to stop the merger, saying it would cost their subscribers more than $4.5 billion annually. Four more states have since joined the lawsuit.

Dish emerged as the leader to acquire the prepaid phone brand Boost Mobile, which T-Mobile and Sprint are selling in order to gain regulatory approval for their merger.

Charter began offering its own mobile service called Spectrum Mobile last year, which runs on Verizon Communications’ network. It served 310,000 mobile lines as of the first quarter.

Dish, which has been stockpiling billions of dollars worth of wireless spectrum, faces a March 2020 deadline to build a product using the spectrum in order to fulfill the requirements of its licenses. It has focused on building an Internet of Things network, with the goal of eventually having a 5G wireless network.

The Federal Communications Commission has indicated it is prepared to approve the Sprint and T-Mobile merger.

Reporting by Angela Moon and Sheila Dang in New York; additional reporting by David Shepardson and Diane Bartz in Washington; editing by Chris Sanders and Leslie Adler

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