Tag Archives: att

AT&T delivers low quality service to low income Californians, but lavishes fiber on the rich

by Steve Blum • , , , ,

Att outages by hh income

AT&T provides the highest quality service in the highest income neighborhoods of California, and the lowest quality in communities with the least income, according to a network quality study done by the California Public Utilities Commission.

The study’s initial findings were released last year. The top line conclusion was that AT&T and Frontier Communications are deliberately choking off investment in ageing copper phone systems, particularly in rural areas – now-bankrupt Frontier because it had no money for upgrades; AT&T because it could get away with it.

Chapters of the study are being released piecemeal. Some of the details are startling. The final conclusions and recommendations chapter expands on the initial summary’s description of AT&T’s economic redlining strategy. The average annual income in places where AT&T has upgraded its systems to full fiber to the premise technology is $72,000, versus $61,000 where it’s left copper networks in place.

Although the number of AT&T service outages climbed everywhere over the seven years of the study, high income neighborhoods also have more reliable service. Customers whose household income averages $42,000 a year or less experience nearly twice the number of “out of service incidents” as those who make $88,000 a year or more.

The study concludes that AT&T is holding people in low income communities hostage to deteriorating copper-based service and milking them for all they’re worth…

Those areas with the lowest household incomes tend to have the highest trouble report rates, the longest out-of-service durations, the lowest percentages of outages cleared within 24 hours, and the longest times required to clear 90% of service outages…wire centers that have experienced the smallest [legacy copper phone service] drop-off rates have exhibited the poorest performance on all service quality metrics. Clearly, those communities that AT&T perceives as the most captive are afforded the lowest levels of attention by the company. Since, as we have also found, wire centers that have received fiber upgrades exhibit superior performance on all of the service quality metrics, the fact that these upgrades have favored higher income communities may well explain the apparent inverse relationship that we have observed as between household incomes and service quality overall.

Recommended solutions include tightening service quality standards – including treating small, rural facilities the same as large, urban ones – and increasing fines when those standards aren’t met. Although the study points to the CPUC’s cynical policy of allowing AT&T and Frontier to effectively pay fines to themselves as part of the problem, it doesn’t explicitly recommend changing it.

For more background documents, click here.

Mobile carriers use arbitration board to debunk each other’s ads

by Steve Blum • , , , ,

The three major U.S. mobile carriers are fighting each other’s advertising claims via an arbitration process run by the Better Business Bureau. First, it was T-Mobile who successfully challenged AT&T’s 5GEvolution scam. The BBB’s National Advertising Division (NAD) said that putting a 5G label on 4G service was misleading, and the appeals board run by BBB agreed.

Verizon objected to T-Mobile’s wide-ranging claims of wide ranging 5G coverage and NAD agreed, albeit while blessing verbiage about the superior building penetration ability of the low band spectrum it’s using.

To round out the set, earlier this month the appeals board upheld an earlier NAD ruling – the result of a complaint by AT&T – that Verizon shouldn’t be calling its service “the most powerful 5G experience”…

The evidence in the record does not clearly demonstrate what consumers understand “powerful” to mean in “the most powerful 5G experience” in the contexts shown. The panel found that the claim “most powerful” conveys a broad superiority message and that the advertiser would need to demonstrate consumer understanding of the term “powerful” in order to make the claim.

The panel therefore concluded that absent this evidence of consumer understanding of the term “powerful,” Verizon did not have proper support for the claim “Verizon is building the most powerful 5G experience for America” and recommended that it be discontinued. The panel did note, however, that the claim would have been supported had it been non-comparative because the evidence in the record demonstrated that Verizon’s future 5G network when generally available will provide the essential network metrics, whether one accepts NAD’s interpretation or Verizon’s interpretation of “powerful.”

There’s no enforcement mechanism attached to any of these opinions. Verizon said it will pull the offending adds, and T-Mobile is taking its case to the appeals board. AT&T effectively ignored that board’s decision, and continues to identify its 4G service using a 5GE icon.

Meaningless fines lead to AT&T’s, Frontier’s deplorable quality in California

by Steve Blum • , , , ,

Verizon taft 2dec2014

A study of AT&T’s, Verizon’s and Frontier Communications’ telephone network quality conducted by the California Public Utilities Commission shows that overall performance is poor across California. Low income communities have worse service and more outages than high income ones, but it’s not particularly good anywhere

Maximum Customer Trouble Report Rates of 6%, 8% or 10% of switched access lines per month (based on wire center size) are unduely generous because failure rates as high as these can hardly constitute acceptable service quality.

The apparently overly generous standard adopted…for Trouble Reports per Hundred access lines is in stark contrast to the requirement…that 90% of all out-of-service conditions are to be cleared within 24 hours. In fact, with the exception of the unique situation extant during the months of February and March 2016, this requirement has never been met by either AT&T or by Verizon/Frontier either on a companywide or on an individual wire center basis.

Although AT&T and Frontier, which now owns Verizon’s wireline systems, face fines, in theory, in practice they don’t: the CPUC allows them to spend the money on system maintenance and upgrades. In theory, it’s supposed to be extra maintenance and upgrade spending, but the loose accounting standards the CPUC applies makes that requirement meaningless.

The study recommends that “fines imposed due to an ILEC’s failure to meet service quality standards should be high enough so as to have the same financial consequences as poor service quality under competitive market conditions”. It doesn’t say how high that should be, but Verizon’s “unique situation” proved that telcos can perform when real money is on the line…

Verizon had actually cleared 91.58% and 92.64% of [out of service] conditions “within 24-hours of receiving notice of the out of service condition” for the months of February and March 2016, respectively, thus seemingly meeting the…requirement as the Commission had directed to be achieved as a precondition for the closing [of the sale of Californian systems to Frontier]. Faced with a powerful $10.5-billion financial incentive to do whatever was necessary to meet this condition, Verizon managed to make it happen – perhaps by importing personnel from some of its other…operations outside of California. However, this two-month compliance…was clearly an anomaly. When Frontier filed its…report for the second quarter of 2016…it showed 24-hour completion percentages for April, May and June 2016 of only 42.92%, 20.85%, and 72.35%, respectively.

It’s time for the CPUC to disavow its cynical decision to allow AT&T and Frontier to keep the money they would otherwise have to pay out in fines.

For more background documents, click here.

AT&T guilty of obfuscation, delay, deception, inaccuracy, evasion, omission and contradiction regarding 911 service, CPUC says

by Steve Blum • , , , ,

Bluto pencils

AT&T has to pay a $3.75 million fine because of its “pattern of obfuscation, delay, and deception” in dealing with the California Public Utilities Commission, and the “inaccuracy, evasion, omission, and contradiction” in its description of its 911 service. The core issue was whether AT&T is required to file particular paperwork regarding next generation 911 services. The answer from the CPUC is an emphatic yes. AT&T’s refusal to do so and the manner in which it refused earned it the multimillion dollar fine.

The CPUC’s unanimous vote upholds a ruling earlier this year by an administrative law judge. AT&T appealed to the commission, claiming it had done no wrong because it merely slipped through legal loopholes created by differences in technology.

It’s a claim AT&T continues to make, most recently when it objected to new CPUC disaster readiness rules. That argument was debunked by the commission’s decision, which reiterated that 911 service is 911 service, regardless of how it’s provided or what network segment of the 911 system is being provided…

The Commission seeks to protect Californians who need safe energy delivery and reliable communications through the natural and man-made disasters to which California is increasingly prone. The Commission’s need for “accurate information from the utility in order to, among other things, ensure that it is providing just, reasonable and safe service” is acute, given the inherent information asymmetry between regulator and regulated entity. AT&T has not provided accurate information pertaining to the issues before us…

Emergency service tariff violations are not garden-variety regulatory misfeasance. The transport of emergency communications is a life and death matter. The difference between transport that guarantees 98%, 99.9% or 99.999% availability for a given trunk line can well mean the difference of an ambulance or fire truck that arrives on time and one that does not.

If anything, the decision said, the $3.75 million fine “may even be too modest” because of AT&T’s “financial resources” and the severity of its violation of “the public trust attendant on the utility services it provides”.

Commissioners made one significant change to the penalty. Originally, AT&T would have been given 30 days to file the necessary paperwork, and if it didn’t, the fine would have doubled to $7.5 million. Instead, AT&T will be fined $15,000 for every day it’s late.

Frontier’s California outage complaint rate triple that of AT&T, electric companies

by Steve Blum • , , , ,

Cpuc complaints 15mar 13jun2020

Frontier Communication’s service outage problem is three times bigger than any other major California utility, judging by consumer complaints submitted to the California Public Utilities Commission during the covid–19 emergency. On a per customer basis the bankrupt telco’s wireline outage complaints were triple those of AT&T, and greater than Southern California Edison’s or Pacific Gas and Electric’s on an absolute basis, despite having fewer than half the number of customers as either of the two electric companies.

CPUC commissioners were briefed on utility customer complaints at their meeting last week. The presentation followed two landmark votes that declared broadband to be public utilities – one setting 25 Mbps download and 3 Mbps upload speeds as the “essential service quantity” of broadband and another requiring wireless companies to maintain “basic internet browsing” capability “during a disaster or commercial power outage”.

That’s an obligation that generally applies to Internet service, CPUC president Marybel Batjer said…

These are definitely difficult times and, as we all know, the pandemic has altered our lives in so many ways, as people are trying to adjust to what we’re calling this new normal. And I appreciate that the CPUC is making sure that residents are able to keep the lights on and more easily get access to the Internet, for work and for school. And we are committed to meeting our core responsibility of ensuring the safe delivery of our services that Californians so rely on to conduct their daily lives.

The CPUC received 49 complaints about unplanned service outages from Frontier customers between 15 March 2020 and 13 June 2020, which comes out to 22 complaints per one million customers. AT&T generated more outage complaints – 69 – but it has nearly five times as many wireline customers as Frontier. PG&E and SCE drew fewer unplanned outage complaints – 38 and 20, respectively – and fewer total complaints per one million customers.

Money – disconnections due to non-payment and payment arrangements – was the biggest source of complaints about PG&E. SCE caught the most flack for planned service outages, which would have been for maintenance – there haven’t been any public safety power shutoffs for wildfire prevention purposes so far this year.

AT&T blows off net neutrality as it zero rates HBO Max

by Steve Blum • , , , ,

Marvin fire

AT&T is giving its HBO Max streaming service a free ride on its mobile broadband network. The bandwidth consumed by AT&T mobile customers while watching HBO Max programming won’t be counted against their monthly data caps. According to a story in The Verge by Nilay Patel, AT&T’s streaming competition won’t get the same zero rating treatment…

HBO Max, AT&T’s big bet on the future of streaming, will be excused from AT&T’s mobile data caps, while competing services like Netflix and Disney Plus will use up your data…

AT&T…confirmed to The Verge that HBO Max will be excused from the company’s traditional data caps and the soft data caps on unlimited plans.

The story goes on to say that AT&T offers other streaming platforms the opportunity to pay for the bandwidth their subscribers consume, but none have found the deal compelling enough to take it. It works for AT&T because it’s just taking money out of its HBO Now pocket and putting it into its AT&T mobile pocket.

Whether it’s a privilege it reserves for itself or one it sells to others, AT&T’s zero rating tactic is the kind of conduct that network neutrality rules are intended to stop. If there were network neutrality rules. The current Federal Communications Commission thinks zero rating and pretty much anything else AT&T does is just fine – that’s why the republican majority voted in 2017 to repeal the net neutrality rules established during the Obama administration.

It’s different in California, sorta. A law passed in 2018 bans “zero-rating some Internet content, applications, services, or devices in a category of Internet content, applications, services, or devices, but not the entire category”, or accepting payment to do so. Unfortunately that law – senate bill 822 – is on ice right now. California attorney general Xavier Becerra agreed not to enforce it while appeals of the FCC’s 2017 decision work their way through the federal courts.

A federal appeals court in Washington, D.C. refused in February to reconsider its earlier decision (mostly) upholding the FCC’s net neutrality rollback. The nominal 90-day deadline for taking it to the federal supreme court passed without action last month. The net neutrality battle could be back in California soon.

AT&T rejects California disaster response obligations

by Steve Blum • , , , ,

AT&T is striking back at covid–19 emergency relief measures adopted by the California Public Utilities Commission. Flanked by Verizon and T-Mobile (via the mobile industry’s lobbying front organisation), AT&T wants the CPUC to repeal rules that require the company to waive things like installation or remote call forwarding fees when people are forced to relocate because of the covid–19 emergency. Those are CPUC mandates that also apply to any other “housing or financial crisis due to a disaster”. AT&T calls that “an act in excess of the Commission’s jurisdiction”.

Those rules also obligate mobile telephone companies to deploy temporary cell sites and other equipment when disaster strikes a particular community, and to provide WiFi access “in areas where impacted wireless customers seek refuge” and mobile phones “for customers seeking shelter from a disaster to use temporarily at a county or city designated shelter”.

AT&T’s landline-oriented arguments against mandatory disaster relief boil down to the CPUC can’t tell us to do that, and if it involves VoIP service, the CPUC can’t tell us to do anything. This is AT&T longstanding position, and as a result it is fighting a multimillion dollar fine and accusations of obstreperous behavior during massive power outages last year. The company is unapologetic and makes the bizarre claim that “VoIP service is not a telephone service”.

The mobile industry’s lobbyists characterise the disaster response measures imposed by the CPUC as “unlawful”, because mobile telecoms are regulated by the federal government and because the Federal Communications Commission is trying, with varying degrees of success, to prevent any state or local control over broadband service.

AT&T and most other big, monopoly model telecoms companies stepped up with voluntary and temporary consumer relief offers during the covid–19 emergency. But unlike other regulated utilities, broadband providers and telcos don’t have to, as Frontier Communications’ refusal to match low income service offers shows. As lockdowns ease and people go back to work, AT&T, Verizon and T-Mobile don’t want the CPUC, or anyone else, interfering with whatever plans they have for recovering their covid–19 response costs and collecting from customers temporarily unable to pay their bills.

AT&T continues 5GEvolution scam despite advertising industry’s slapdown

by Steve Blum • , , ,

Att customer evolution

A self-regulating body set up by the advertising industry slapped down AT&T’s strategy of conning mobile subscribers into thinking that they’re getting 5G service when they’re really connected to a 4G network. The National Advertising Review Board (NARB), which is run by the Better Business Bureau, concluded that AT&T’s decision to slap a “5G Evolution” label or, more confusingly, a 5GE icon, on its LTE service is misleading and that “consumers may well interpret “Evolution” in the challenged claims as signifying that AT&T’s technology has already evolved into 5G”. Which it hasn’t yet, and won’t for many years to come.

Not fully.

NARB recommended that AT&T pull the offending ads. AT&T isn’t obligated to follow the recommendation, and it didn’t.

Not fully.

A Lightreading.com article by Mike Dano reports that AT&T will drop the offending ads, but will still display the deceptive 5GE icon on phones that are connected to its 4G LTE network…

“AT&T respectfully disagrees with the reasoning and result reached by the panel majority,” the operator said in a statement to Light Reading. “AT&T’s customers nationwide continue to benefit from dramatically superior speeds and performance that its current network provides. As a supporter of the self-regulatory process, however, AT&T will comply with the NARB’s decision.”

But AT&T said the NARB’s recommendation only applies to its advertising and therefore will not affect the one element that really matters: Its service icon.

AT&T’s justification for the 5GE branding is that its 4G network is so wicked fast that it might as well be 5G. That’s not true, as independent testing has shown. But that’s not something that weighs heavily on the minds of AT&T’s corporate brand managers, or that will be obvious to the vast majority of its customers.

It should be noted that AT&T is not the only mobile carriers making dubious advertising claims. A quick look at recent NARB decisions shows that T-Mobile (which filed the original complaint against AT&T) and Verizon have likewise attracted its disapproval.

We’re doing better than Bangladesh, so give us money, telcos tell U.S. senate

by Steve Blum • , , , ,

India utility pole

Telephone companies don’t appear to having the same success cable companies have had with broadband promotions during the covid–19 emergency. The head of telco’s primary Washington, D.C. lobbying front organisation asked a U.S. senate committee on Wednesday to “keep providers on sound financial footing” and urged the use of existing, incumbent-friendly federal programs to distribute subsidies directly to them.

California’s two major telephone companies – AT&T and Frontier Communications – aren’t offering service at the 25 Mbps at $15 or less per month covid–19 benchmark set by California Public Utilities Commission president Marybel Batjer. AT&T has a 10 Mbps or less for $10 offer for low income customers, while bankrupt Frontier tops out at 12 Mbps for $20 for legacy copper customers.

As lobbyists do, USTelecom CEO Jonathan Spalter told of the hardships his clients face and lavished accolades upon them for persevering nonetheless. That list includes AT&T and Frontier, as well as Verizon, Centurylink and lots of small telephone companies. But not major cable companies. When Spalter spoke about their performance during the emergency, though, it was more like damning with faint praise…

Even as traffic has at times soared more than 25 percent higher than pre-crisis levels, the performance of our networks remains seamless for our nation’s citizens. Indeed, according to one recent study, “[o]f the top 10 countries in the world by population, the U.S. is the only [country] that recorded no download speed degradation on average in the month of April.”

So who are AT&T, Frontier and friends beating? China, for one, which is the world’s most populous country. Not far behind is India – both countries have more than a billion residents. It’s a long drop to third place, which belongs to the U.S. with 333 million people. The remaining seven are in the 100 million/200 million range: Indonesia, Pakistan, Nigeria, Brazil, Bangladesh, Russia and Mexico.

Yes. Our broadband networks are holding up better than their’s.

U.S. house democrats propose $50 monthly broadband subsidy for low income homes, AT&T and Comcast will be happy to take it

by Steve Blum • , , , ,

With covid–19 pandemic lockdowns continuing in most states, albeit with gradual loosening underway, democrats in the house of representatives in Washington, D.C. want to pump $5.5 billion into broadband access subsidies to ensure that people and institutions can remain connected to the online resources they will be depending on, likely for months to come. It’s one of the opening shots in the negotiations over what might be a second stimulus bill in the trillion dollar range to keep the U.S. economy afloat.

It’s a big leap from the $375 million for broadband that was included in the first, $2 trillion pandemic stimulus bill approved by congress in March. But it’s also broadband funding of a different sort. In March, the money went to supply-side uses, such as $100 million for broadband infrastructure via the federal agriculture department’s ReConnect program. This time around, house democrats want the money to feed the demand side – $4 billion is earmarked to subsidise monthly Internet bills for low income families, up to $50 per month per household. The remaining $1.5 billion would go to school and libraries to pay for mobile network-enabled WiFi devices and service, and other expenses necessary for keeping kids connected to school lessons.

Ultimately, that money will hit the bottom lines of major, monopoly model incumbent Internet service providers like AT&T, Comcast, Charter and the rest. If the bill sets a de facto base price of $50 per month for Internet service, then that’s what those companies will charge. It’s a lot easier to up sell customers from what are, in effect, low income loss leader promotions such as the $10 per month Comcast Internet Essentials or Access from AT&T packages, and move them into expensive long term contracts when someone else is picking up the tab. But $4 billion only lasts so long. When the subsidies run out, those households will be stuck with higher bills for a long time.

The odds of this latest proposal making it into law as is are pretty slim, though. What house democrats seem to doing is setting up for negotiations with U.S. senate republicans and the white house. The D.C. beltway sausage machine is about to crank into high gear.