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Tag: Verizon

  • Verizon is First in the World to Turn on 5G – Launches in 2 Cities – Starts Selling Moto 5G Phone, Says CEO

    Verizon is First in the World to Turn on 5G – Launches in 2 Cities – Starts Selling Moto 5G Phone, Says CEO

    “It’s a great day for us to be first in the world with 5G smartphones and turning on the network,” says Verizon CEO Hans Vestberg. “We decided to turn it on today (8 days early). We are selling the Moto 5G phone. The z3 is in the stores. You can have a fantastic experience with the Verizon 5G Ultra Wideband network in these two cities (Minneapolis, Chicago areas) right now.”

    Hans Vestberg, CEO of Verizon, announces the launch of 5G in two cities and the availability of the Moto 5G phone in an interview on CNBC:

    Verizon is First in the World to Turn on 5G

    The team has been working relentlessly to give our customers this fantastic experience in 5G and actually our test is going so well. Why wait when we have some good news for our customers. So we decided to turn it on today (8 days early). We are selling the Moto 5G phone. The z3 is in the stores. You can have a fantastic experience with the Verizon 5G Ultra Wideband network in these two cities (Minneapolis, Chicago areas) right now.

    You’re going to see many more handsets with 5G coming out this year. We have announced two that we will have in the first half of the year. The Motorola, of course, is the one we are going with right now and we’re going to have a Samsung a little bit later in this quarter. That’s the two and then we have others coming in the second half. We’re going to see more 5G phones than probably were expected. We have at least a good relationship with all of those guys.

    5G Rolling Out in Minneapolis and Chicago

    When it comes to our rollout we are starting with these two cities right now. We’re going to do more than 30 markets this year and we’re working in all these markets right now. We’re going to turn them up as soon as they’re ready. Then we feel that we can give the experience that we want to give to our customers when it comes to 5G, meaning real 5G, and at the same time have the most reliable 4G network.

    We think a lot about our customers and how we’re going to treat them. It’s a great day for us to be first in the world with 5G smartphones and turning on the network. I think that says a lot about the team that I have around me and the partners we have. We’re going to do a lot about education around it. Our stores have been trained now to explain what see you can do with it and, of course, we also talked about the ultra-wideband.

    You’re Going to See So Much Innovation With 5G

    We’re going to have speeds up to 1 gigabit per second compared to around of 50 megabits per second in 4G. It’s 20 times faster when you’re in the 5G zone. Of course, you can do so much with it at the same time. You’re going to have download speeds up to 300 megabits per second which means that it can take down things much quicker. The latencies will be some 30 milliseconds compared to 100 today.

    And that’s just a start of 5G. What we saw in 4G was enormous innovation when you see these type of capabilities coming out on a network. You’re going to see so much innovation on 5G. I said it before. it’s not a small sort of evolution from 4G, it’s a quantum leap going to 5G from 4G. You’re going to see a lot of innovation and new applications coming on top of the 5G networks.

    Verizon is First in the World to Turn on 5G, Says Verizon CEO Hans Vestberg


  • Direct to Consumer is a Fundamental Platform Shift, Says Tim Armstrong

    Direct to Consumer is a Fundamental Platform Shift, Says Tim Armstrong

    Direct to Consumer, or DTC, is a fundamental platform shift, according to former AOL and Verizon digital properties CEO Tim Armstrong. “There have been a couple times in my career where there has been what is basically a fundamental platform shift,” noted Armstrong. “I felt like direct-to-consumer was something that was going to be a platform shift. Not for probably the obvious reasons, but some of the reasons that were less obvious, but things that I thought were important for the future.”

    Tim Armstrong, former AOL and Verizon Oath CEO and current founder and CEO of The DTX Company, discusses how direct to consumer (DTC) ecommerce businesses represent a “fundamental platform shift,” in an interview with Recode’s Kara Swisher and Jason Del Rey at An Evening with Code Commerce in Las Vegas:

    Direct to Consumer is a Fundamental Platform Shift

    About a year and a half ago I started spending a lot more time just on where the underlying infrastructure in the world was changing around the internet and mobile and all the things that we’ve talked about for years. One of the things that stood out to me was there’s been a couple times in my career where there has been what is basically a fundamental platform shift. I felt like direct-to-consumer was something that was going to be a platform shift. Not for probably the obvious reasons, but some of the reasons that were less obvious, but things that I thought were important for the future.

    One was data management, just in terms of things like GDPR and similar things that were happening. I think the power and data is going to shift back more towards the consumer side over the next 10 or 20 years. I thought that would fuel direct to consumer. The second is that the product development cycles that were happening at the direct the consumer companies were much faster and much deeper than what was happening in the normal channels of product development. I think that’s another thing that over a 5, 10, 15, 20 year period these companies are going to have a real advantage in terms of how they develop products and distribute them.

    Customer Communication: Two Way or No Way

    The third thing was just the two-way communication. At DTX we have a growing team, but one of the things we say is two way or no way. Two-way communication with the customer having a direct relationship with companies. The last thing is how the relationships between consumers and companies are going to change. This seems like a really important trend and probably there’s a really big opportunity here. There may not be but that that’s what got me interested in it.

    What we’re doing right now is really kind of two simple things. One is we’re putting investments directly into DTC companies and we’ve done a number of those and we’ll do a few more. The second thing we’re doing is spending a lot of time on an acronym that I hear all the time now which is CAC, customer acquisition cost. Really, on the operating side of the business what we’re doing is not CAC, it’s CRAC, which is an unfortunate acronym, but it’s customer revenue and acquisition cost. Having the balance on the equation of those two things we’re going to be testing things in 2019, some experiences and and other things that will hopefully put the R back in the CAC equation.

    DTC Might Re-Engineer the Entire Way Commerce is Done

    All of my experiences and basically all the stuff I did on the media side was all two-way relationships. The more time I started to think about really what happened was the reason I thought about DTC’s. I started to go back to those memories based on meeting a lot of the DTC founders and of coaching CEOs for DTC founders. I started to think about things like GDPR and some of the things that are happening underneath the surface that I think is going to change long term. I thought wow, this might actually re-engineer the entire way commerce is done and this is a really interesting opportunity.

    There are a bunch of spaces online now you can look at where people are piling money and where there’s probably over investment. But DTC overall, if you went product by product, category by category, industry by industry, in DTC, there are so many companies that you’ve never heard of and rightly so. The Casper’s, the Warby Parker’s, those are amazing companies and they get a ton of notoriety. There are also about 10,000 other categories. They don’t have ten people, they might have one or two, but they’re doing interesting things in them.

    People ask us all the time, is there a DTC ceiling, these companies can only get so big? That may be true but I don’t think it’s true. What will happen is the aggregate of all these things together. If you have ten thousand DTC brands and they’re $10 million or $50 million or $500 million they may not have to look like Google and Facebook right now, but when you add up all of them together over time and what’s likely to happen with a condensing of the market in the next 10 or 20 years (it is significant).

    DTC Could Be an Amazing Transformation

    There are two things that stand out to me. One is every major press article around traditional commerce tends to be negative. Not all the time, but there’s so much angst around what’s happening in retail overall. A lot of it is deserved, but there are a lot of interesting things happening in traditional retail. The second one is the DTC categories that are super hot, the four or five super hot categories, get 90 percent of the coverage and press. What we’re seeing and we have people coming in offices all day doing DTC and there’s just an amazing amount of ingenuity, invention, and innovation happening in different categories.

    I think again it’s one of these things you’re going to wake up 5, 7, 10, or 15 years from now and say, wow, this was like a really amazing transformation. It’s going to be for the reasons that these companies all talk to their consumers all the time. The amount of product innovation that’s happening is truly tremendous. If you take the Beauty category or any category and you dig into all of the DTC brands and micro categories within, if you went to a Procter & Gamble or Unilever and look at all of their products, each one of their products has multiple DTC companies trying to innovate that space.

    I think you’ll end up seeing the recreation of really large consolidated companies. It may not happen for years, but I think it will happen. The reason is not because they were cheaper than what happens in the Unilever Procter & Gamble it’s because the product innovation is hard. Having spent so much time now with DTC companies, the amount of product innovation that happens at that those companies with direct consumer interactions seems to me to be deeper and faster than it is at most other traditional companies.


  • Verizon CEO: 5G Will Transform the Enterprise

    Verizon CEO: 5G Will Transform the Enterprise

    There will be real-time enterprise solutions based on 5G, says Verizon CEO Hans Vestberg. He predicts that this is a way to transform an enterprise. Vestberg also says that 5G will continue to aggressively roll out this year and that there will be a Motorola and Samsung 5G phone possibly released within the next six months.

    Hans Vestberg, CEO of Verizon, discussed on Fox Business at Davos 2019 the advent of 5G and how it will spark massive innovation and technological change:

    5G Will Transform the Enterprise

    With business, we are already global as well as with our media strategy with our Yahoo brands, etc. With the consumer, we are only in the US and that is where we are focusing right now. With the 5G coming up that’s, of course, opening up new markets for us that we hadn’t had before. When it comes to wireless consumption for consumers there’s not so much more growth to do. What we see with 5G are so many other use cases. Consumers get the best service now and with 5G they will get even better service than they have today.

    We also have 5G Home which is a market that we don’t address today. Then, of course, there will be real-time enterprise solutions based on 5G. This is a way to transform an enterprise. It can be the production floor or a business campus that you transform with 5G. We see other use cases beyond consumers when we go to 5G. We will always take care of our consumers. We are the best network and we have the best performance and that will continue as well.

    5G Phones Coming Very Soon

    5G phones are coming soon. I have already announced that we will have two 5G phones coming out this year, preferably in the first half of the year. They will be from Motorola and Samsung. What it’s going to mean for consumers is when we have the 5G Ultra Wideband you are going to have 10X throughput and speeds.

    I’m sure you are wondering about new use cases with 5G. Remember when 4G came, we didn’t know. I can tell you that when there are so many people on 5G phones people are going to innovate new services with the speed, the throughput, and the low latency. Our plan is to work with the different developers using our platform or our network service in order to get the innovation on top of it. That’s going to create a lot of new services.

    5G Home Launching in More Markets

    The home service has been predominantly a cable or fiber service. Nowadays, we can see that you can also do that with wireless. You can get it quicker and we also see an increase in cord cutting. We want to give optionality to our customers. If they want a wireless offering they should be able to have that as well.

    We see that as a good opportunity. We already launched 5G Home last year in four markets and this year we want to launch in more markets.


  • The Fourth Industrial Revolution Will Be Built on 5G, Says Verizon CEO

    The Fourth Industrial Revolution Will Be Built on 5G, Says Verizon CEO

    Verizon CEO Hans Vestberg says that 5G is much more than just your typical mobile network speed improvement. 5G is a transformative technology that will power the Fourth Industrial Revolution and dramatically change society in the process. Like the three Industrial Revolution’s before this one, the innovations that are enabled by 5G are what will define this technology advancement.

    Hans Vestberg, CEO of Verizon, explains at the Consumer Electronics Show in Las Vegas how 5G is core to the next era of technology transformation:

    5G Will Change Everything

    Last year Verizon launched the first 5G network with 5G Home. There is so much to come from 5G this year and the years to come. 5G will change everything. The pace of technology change that we have seen in the last decade has been fast. The only thing we know for sure is that the pace of change is going to be faster in the future. We are going to see technology changes that are going to transform people, businesses, and society.

    We are facing multiple challenges on this earth, our daily work life, things around us, climate change, and we are heading into the Fourth Industrial Revolution. Think about all of these challenges and the Fourth Industrial Revolution together with 5G. Together with all the new technology acronyms like VR, AR, AI, and more. All of that together is really what we are talking about when it comes to the technology change that is inevitable that we are going to see in the future.

    The Fourth Industrial Revolution Will Be Built on 5G

    For us here we are on the cloud. It’s really to see that we are using this change and shape it in a direction that is actually transforming and doing good. The next area of technology advancement is going to be built on 5G. Most importantly, this is a different industrial revolution. The first one was the steam engine. The second one was electricity and the third one was digitization. All of them have a general purpose technology as a base. Then you innovated tremendously on it.

    The steam engine, of course, on steamboats connecting continents, trade resulting. Electricity changed everything. Then of course, with digitalization that brought out all the PC computers, the internet and all of that. These were enormous transformations. The general technology for the Fourth Industrial Revolution is actually the total connectivity that 5G can bring. That’s what I see as a huge opportunity for all of us and our society to use in the next era of technology transformation.

    5G is a Quantum Leap Compared to 4G

    So what is 5G? 5G is a promise of so much than just an increase in wireless technology. From the beginning we had the 1G, the 2G, the 3G, and then the 4G. They were sort of leaps of differences when it comes to speed and throughput. When we think about 5G we think about 10 gigabits per second for throughput. We think about 10x improvement in latency. We think about 1,000 times more data volume to the network. It’s just radically different. It’s a quantum leap compared to 4G.

    We have already done some real type of examples. We had an Indianapolis 500 driver that had blacked out windows driving extremely fast with 5G. Latency was so low you could actually drive it.

    https://youtu.be/Dw2GT95Vyxc

    Those type of things require innovation. Innovation requires a lot of different people and constituencies working with us. When I think about technology I also think a lot about how that can do good for our society. We are entering an era of more challenging things around the world and technology is one of the most important things that can transform it and make it sustainable. At Verizon, we call that human ability. We coined that word because we think about the human in the middle of technology to do right.

    The Eight Currencies of 5G

    When I think about 5G one of the big differences when we started developing 5G it was thought about giving a new type of solution for industry and for society. Ultimately consumers will have it. The capabilities of earlier wireless technology usually have speed and throughput assets as a different capability. We have eight capabilities in 5G. I call them the eight currencies.

    The Eight Currencies of 5G

    With the eight currencies of 5G you can do a service on them, you can monetize on them, you can build on them. This is very different than any previous wireless technology. There’s the Peak Data Rate and Mobile Data Volume, but it’s also the Mobility. It’s also how many Connected Devices that you can have. It’s Energy Efficiency and Service Deployment. And then, of course, it’s Reliability and Latency. There are eight currencies that 5G can give to the user. Whether it’s a device, a person, or an industry, that depends on how we are going to innovate on that.

    It’s important that we have already started on a journey. Verizon started years ago to start building a network because you need a lot of fiber and you need a lot of dense networks to build these eight currencies. You need real estate to do mobile edge compute. Not only that you need spectrum. In some cases you need millimeter wave spectrum that is giving you enormous throughput and bandwidth.

    Peak Rate and Thoughput

    What I’m excited about is what innovation can we do on this currency? Let’s talk about the currencies that we have here. The Peak Rate and the Throughput are extremely important when it comes to doing things with speed. The first thing that comes to mind is how quickly can you download a movie on 5G. Today on 4G it takes 3 to 4 minutes with a 90-minute movie. It’s going to take you 10 seconds when you have ultra-wideband. So that’s a use case, but that’s really to limit yourself with what you can do with it.

    There’s so much more that you can do when you have that type of Speed and Throughput. It’s a quantum leap compared to what we have today. It’s about rethinking how you can use the increased speed and throughput when you talk about speed at 10 gigabits per second and throughput probably 1000 times more than today. I’m excited about those two currencies, but there are other currencies.

    Mobility and Connected Devices

    Two other currencies are Mobility and Connected Devices. Mobility or mobile connections, that’s how it’s actually measured in speed. In a 4G network today you can basically capture a radio signal up to 350 kilometers per hour. In 5G it’s roughly 500 kilometers per hour. Why does that matter? Think about high speed trains. Think about things that are going to move extremely fast in the future that are going to bring efficient transportation. With 5G you can captures that.

    When it comes to IoT and Connected Devices, one of the limitations of wireless technology today is that you can roughly connect 100,000 devices per square kilometer with 4G. With 5G you can do 1 million. Suddenly you can have massive IoT in order to transform big cities, industry, or behaviours where we need to address challenges that we have today. These two currencies are also very different and address different business cases.

    Service Deployment and Energy Efficiency

    Let’s talk about two other currencies or capabilities, Service Deployment and Energy Efficiency. Service Deployment is a little hard to explain, but what it’s really about if flexible service deployment where you can match your software with specific customer needs. Think about if you want to do a virtual classroom with five different cities and you want them to have the same software. Today on the 4G network that would take me weeks or even months.

    The promise of 5G is that can go down to minutes where we can spin the new service based on the software demands of the customer. These are enormous changes. We just need to think how can we innovate on that?

    Now there is of course Energy Efficiency. Here the world is facing the challenges of climate change and our industry needs to think about all of the equipment we are using and that everything we are using is improving how much CO2 we are doing. There are a lot of things coming out but we just need to continue and we need to do that collectively.

    5G is promising to reduce up to 90 percent of the power usage that we have with 4G. This is about making the Fourth Industrial Revolution a positive change. The first and second industrial revolutions produced a lot of CO2 emissions because they were the steam engines and electricity. Here we have a chance together to actually power and uniquely address those two as well.

    Latency and Reliability

    The last two currencies are Latency and Reliability. On the latency side today in the mobile networks we can get to 100 milliseconds or 50 milliseconds. In 5G we will go down to 10 milliseconds. Why is that important? Everything realtime, AR, VR, needs to come down to at least 20 milliseconds in order to avoid delays. There are so many other use cases you can do as well.

    Latency and Reliability are very important in the network. It comes down to how we can innovate. It’s just so dramatic how much difference with what you can do things with 5G than with the previous technology cycles.


  • AT&T CEO Slaps Down 5G Criticism by Verizon and T-Mobile

    AT&T CEO Slaps Down 5G Criticism by Verizon and T-Mobile

    AT&T CEO John Donovan slapped down recent 5G criticism by Verizon and T-Mobile at the Consumer Electronics Show in Las Vegas. Those companies and some others have criticized them saying AT&T is “slapping 5G stickers” on upgraded 4G phones. They say it is misleading and confusing to consumers and is damaging to 5G in the long run. Donovan says that is really just not the case.

    John Donovan, CEO of AT&T Communications, discussed criticisms related to 5G marketing and how 5G is going to radically reshape technology in the future in an interview by CNBC at CES in Las Vegas:

    They Are a Little Wounded by Our Success Last Month

    The fact that we have beachfront property inside their heads makes me smile. But that’s really just not the case. If you think about the history of our industry, the top part of that phone has always given an indication of the network information. In the early days, the number of bars told you where you were coverage wise.

    Then when you were paying per megabyte you’d look to see where to get a Wi-Fi network. That’s always been the information that was available to customers about what’s going to be available and what can they do.

    For us, it was a natural evolution. We announced two years ago at this show, actually in 2017, that we were going to do this. The fact that we did it and then all of a sudden our competitors have decided that they’re upset by it, I think that they’re wounded a little by our success last month.

    AT&T Bringing 5G to Dallas Cowboys AT&T Stadium

    In December, just last month, we launched the first 5G mobile version that’s standards-based, you can buy a device and you can get on the network for 12 cities. The first part of this year we’re going to roll out in another seven cities. So we’re well down the path. We’ve been announcing some of these use cases that we’re doing with businesses.

    Just this morning we announced we’re going to work with the Dallas Cowboys to get 5G into AT&T Stadium and Rush Hospital in Chicago, where we’re going to try to transform healthcare inside the provider hospitals. and so we’re really excited about the opportunity to continue marching down this path.

    5G is Going to Radically Reshape Technology

    The 4G network itself was really the epicenter of the 4G revolution which was the device itself. As you think about how it comes together though, each of these generations, the network, the device, and then the applications, have to come together. Sometimes you get those things timed perfectly. Sometimes one is ahead of another. At the end of the day, the consumer benefits are going to arrive when all three of them come together at the same time.

    What’s different about 5G is not just that the network is more powerful. We always think of it as a real-time network. It’s also that we’ve been getting calls from customers in advance that say I’m going to do a new architecture or a new design on something that you’re going to see on the CES floor.

    It’s going to radically reshape the size of goggles, for instance, for virtual reality. It’s going to change how you would architect an autonomous car. So this is different because these things are going to happen and come together much more quickly than they did during the early days of the iPhone and the evolution of the 3G and the 4G network.

    Asked about subsidizing phones again or subsidizing something else to help aid the 5G rollout:

    Possibility of Bringing Back Phone Subsidies

    That’s a TBD. I do think that when you build a long term relationship with a customer and that relationship is expanding it does give you some degrees of freedom to say we’re going to help you with the economics of this or help with the economics of that. It’s a TBD.

    I’m not trying to shy away from the question. I think that there’s a possibility that you could get back into subsidies of some sort. Today, what customers appreciate with us is they have the ability to get HBO or music so that they get some added benefit with their traditional network.


  • Netflix Must Create Ad Model or Raise Prices

    Netflix Must Create Ad Model or Raise Prices

    Netflix announced that their original movie ‘Bird Box’ generated over 45 million streams in just the first week making it the best first 7 days ever for a Netflix film. However, some analysts say that their $12 billion in debt and mounting costs will require Netflix to either raise subscription prices again or create an advertising model.

    Porter Bibb of Mediatech Capital Partners recently discussed the future of Netflix on CNBC:

    Netflix Is Going to Soon Hit the Wall

    Long-term Disney and the other major content producers are pulling their content off of Netflix and going it on their own. There’s no question that if you have a library of immensely popular content you’re going to draw a crowd no matter what. Everybody’s looking today at Netflix and the 45 million people who supposedly streamed Bird Box. If it had gone out as a theatrical feature it would have been the biggest box-office hit in the history of motion pictures.

    Netflix Must Create Ad Model or Raise Prices

    It can’t continue. Netflix reported for its last quarter a $3 billion negative cash flow. Their off-balance-sheet debt is mounting. It’s well over $12 billion right now. When they have to go out and continue to pay huge amounts for top talent they’re going to soon hit the wall. Netflix is going to have to do one of two things. They’re either going to have to create an advertising revenue stream or they’re going to have to raise their prices.

    However, in the past when they’ve tried to raise their subscription prices their membership and subscriber lists have just plummeted right through the floor. They’re in a very tight corner right now and the major content producers and the major talent that has been giving them a lot of headlines is not a sustainable business model.

    Verizon FiOS Has to Have ESPN

    Verizon FiOS has to have the ESPN if they expect anybody to watch. It’s really curious that Verizon which has with the new CEO this year advertised heavily the fact that they don’t have any real interest in content. They want to be a distributor and stick with the dumb pipes while their competitors at AT&T and elsewhere are loading up on content.

    With a single revenue stream, it’s not really the way to go. It’s taking a little while for the whole media market to shake itself out. It’s all going mobile, it’s all going streaming, digital, and video, so Verizon is going to be left at the gate. I think they’ll change their tune and come back to content. They made some overtures last year about acquiring both CBS and Viacom. It’s not out of the question that they come back and knock both of those into the Verizon pool.


  • Verizon CEO: 5G Wireless Revolution to the Home Launches in 4 Cities and a Rollout to the Masses is Next

    Verizon CEO: 5G Wireless Revolution to the Home Launches in 4 Cities and a Rollout to the Masses is Next

    Verizon CEO Hans Vestberg says that 5G wireless to the home is “a revolution” while announcing the first active 5G in homes in the world. Two weeks ago Verizon started taking orders in Houston, Indianapolis, Los Angeles, and Sacramento and the response has been massive.

    Fast wireless to the home has long been a goal of Verizon that is likely to spur on cable cutters since OTT programming is readily available and consumers won’t need to buy internet from the cable companies.

    Vesterberg also says that they are in talks with many enterprise companies regarding their use of 5G which could truly make the IoT come to life.

    Verizon CEO Hans Vestberg made discussed the 5G rollout on Bloomberg:

    Verizon Launches 5G to the Home in 4 Cities

    Verizon has worked for a long time with 5G and there are many use cases. The first use case is active 5G in the home. Instead of having fiber to the home we’ll have wireless to the home. It’s just a revolution as to what you can do with wireless. We announced 5G two weeks ago that you can order it and today we are going to make the first customers in the world, in the four cities, get 5G in the home. It’s an exciting time for us.

    Many things are happening in 5G. We are doing home, there’s definitely going to be a lot of enterprise solutions, IoT and all of that. Of course, we as consumers are going to get the 5G in smartphones in 2019 which is going to be a totally new experience.

    5G in the Home Reduces Latency

    There are so many facets of 5G compared to 3G and 4G where basically throughput and speed were the only two things you could trade on. There are so many more things you can do with it including reducing latency. That’s why we started 5G with the home because we think that is a totally new market for us where we can address our customers.

    We’ve had a massive interest but we do this limited, there are only four cities, but I can tell you there are so many people coming in and checking if their zip code is included, so we are starting it a little bit small and when we have established a global standard of 5G we want to roll it out to the masses throughout the country.

    Enterprise Use of 5G is Very Important.

    Enterprise is very important and of course, when it comes to 5G you can think about the real-time enterprise, you can take away all of the cords. We’re already talking to many enterprises and what use cases they see from 5G.

  • Verizon Business Markets CIO: We Have to Humanize Technology

    Verizon Business Markets CIO: We Have to Humanize Technology

    The CIO of Verizon Business Markets, which is Verizon’s small business segment, says that “We have to humanize technology.” What Rajeev Chandrasekharan is talking about is Verizon’s push internally to modernize the customer experience and to make it less frustrating.

    The Verizon Business Markets CIO says that they are modernizing and becoming more customer-centric with the help of Salesforce CRM and other tools. Their goal is to ensure that the customer’s concerns and information follow the customer, regardless of who at Verizon the customer is speaking with.

    Rajeev Chandrasekharan, CIO of Verizon Business Markets, recently discussed how they are reimagining the customer experience at the Dreamforce conference in San Francisco:

    The Three Pillars for Industry Transformation

    Our industry is seeing a lot of need for transformation and if you really look at it there are three different pillars. One is we’re engineered for scale and not for speed to market. We do something well and we are big and now that whole equation is changing with needing to get to the market quickly with products. The second aspect is we’ve been around for a while and use different kinds of technologies and we need to refresh them so we need to start using some of the cooler capabilities that exist.

    Lastly, there’s a lot of pressure on us with all the other industries, the digital unicorns, trying to provide this amazing customer experience and it’s not good enough now just to provide service or be a commodity. The intersection of those three needs is creating a need for a huge digital transformation.

    My role here in Verizon Business Markets is while we launch new products try to build digital business and try to leverage all of this technology and customer experience while we penetrate newer customer segments.

    Verizon Business Markets in the Midst of a Digital Transformation

    Generally, when you do a digital transformation there’s a lot of work and a lot of investment and the question companies always have is how much is it worth to go change everything that I’ve done? Luckily for us since we have multiple business units we pick the small business unit and said we see a tremendous potential here for new products and for penetration of the market so the investment is well justified. So go, do not compromise on things, drive this digital mobile first omnichannel thinking to the extreme and build something that’s like a beacon for all the other business units to follow.

    We’ve taken this to a place where revenue is going to be generated and when you have a promise of being able to grow the top-line it’s easy to justify all the work that goes into it. The other aspect is we’ve got a lot of buy-in from the top on trying to do things differently, so we’ve tried to put together a few rules of how we want to operate. We call them the big rules. Then build on that, where we’re trying to make sure the whole organization is saying, don’t fall into the trap of doing things the old way and make sure we focus on these big rules. Culturally and then opportunity wise Verizon Business Markets, the small business segment, becomes a fantastic place to try out this concept and we’re going all-out.

    This is a Customer-Centric Digital Transformation

    This is a customer-centric digital transformation. We started with the customer, we looked at the product research, we looked at the capabilities and then we decided what platform we wanted and what processes we can change. We also challenged ourselves by saying that we need to break our own rules and do something different. For example, if you’re going to get into a house differently and you can’t get to through the window, you can’t build another door, you can’t break in and you have got to use the key, then different about it? We challenge ourselves to break those rules.

    That customer in mindset is what we are struggling with and that’s the one thing I would say that we didn’t have, the digital native aspect, the customer-centric aspect as much. We have that in our service, in our network, and in our products, we have amazing stuff. When we top it off with this we’re going to be in a good place.

    We Have to Humanize Technology

    I think we have amazing products and services so innovation is constantly going to happen there. The two things that I see is operations are going to become digital with artificial intelligence and those sort of new age technologies, which is very important for you to be competitive in the marketplace or you’re not going to survive against your competition. Then, the most important thing is the way you go to deliver capabilities to a customer.

    We have to humanize technology. The customer is basically saying what do you think, what do you say, what do you do, and we then turn it into some garble technology talk. We need to operate as a digital entity and make the customer feel like we as a company are doing one-on-one personal services for you in think, say, and do.

    We’re giving you intelligent recommendations, executing your orders, and we are communicating with you effectively. That is going to almost take you back to the olden days of manual stuff which were one-on-one but without the human and instead with technology. That is the sweet spot for us going forward.

  • Are You Ready for the New Mobile Gold Rush?

    Are You Ready for the New Mobile Gold Rush?

    “Are you ready for the new mobile gold rush? Of course you’re not,” said Jim O’Leary, Sr. Manager Mobile Solutions Marketing at Cisco. “Though truth be told, the pending growth in mobile video may be more like a video tornado and only a handful of mobile operators are prepared.”

    What Jim O’Leary is talking about is the rapidly changing landscape of content viewing. Multi-device viewing is now the norm and the dumping of the old cable content bundle is well under way. Over-The-Top content (OTT), where content is consumed without going through the traditional gatekeepers such as the cable or satellite provider, is bringing complete and utter disruption to the cable and broadcast companies.

    (Related: How Google Measures Cross-Device Ad Conversions)

    However, with disruption comes opportunity.

    Video now accounts for the majority of global mobile data traffic and is forecast to be the key driver of data traffic growth globally. To date, mobile video (and the ability to monetize the content) has been dominated by Internet players, such as YouTube, Netflix, with the operator role simply one of connectivity provider.

    However, a number of operators are developing their own content delivery platforms. Singtel, Verizon and PCCW are three prominent examples of this trend, with their HOOQ, Go90 and Viu video platforms respectively. While HooQ and Viu are variants of the subscription-based model, Go90 more closely resembles the Internet business model, with a reliance on advertising for revenues and a focus on millennials. – Jim O’Leary, Cisco

    “Mobile operators across the world face the same twin challenges of slowing growth and ongoing disruption of core services by new Internet & OTT players, even as the broader mobile ecosystem continues to see significant revenue growth,” O’Leary posted. “So if you are tired of being just an operator that carries mobile video and prefer to be able to monetize it, read on.”

    Mobile Video Watching is Booming!

    O’Leary sees a significant monetization opportunity for mobile operators with video for a very good reason, the exploding growth in using mobile devices to watch videos. An On Device Research study commissioned by the IAB in 2015 (Download PDF) confirmed the changing landscape for mobile globally, with 35% watching more video on their smartphone versus last year.

    In February 2016 Cisco released a study predicting that by 2020 there will be 5.5 billion global mobile users which is up from the 4.8 billion currently, and those millions of new mobile users will be watching video too!

    More astonishing, the study says that by 2020 there will be 11.6 mobile-connected devices! This is indicative of another emerging trend, connecting ALL devices to the internet via mobile operators where internet content and data can be consumed and sometimes produced on and by these devices.

    Gartner estimates that the Internet of Things (IoT) is currently connected to 6.4 billion devices and will connect to 20.8 billion “things” by 2020. Some of these “things” will be video enabled devices as well. For instance, watching a video of how to make vegan scrambled eggs on your refrigerator door!

    Mobile Operators Can Play “Central Role” in Content

    So mobile operators have massive connectivity with virtually everyone 12 years old and up having a smart phone and if they can play a central role in providing content they can benefit from the “emerging online video value chain.” It’s about using great content to boost usage of their mobile broadband service. O’Leary believes that Verizon, Sprint, AT&T and others should take advantage of this “content opportunity” in order to cash in and drive business growth.

    The biggest impediment for mobile phone companies entering the video content space is their tendency to charge high rates for large bandwidth consumption. Mobile broadband carriers should eventually come to the realization that their businesses are tied to consumers needing them and it is in their interest to provide inexpensive ways to consume high bandwidth mobile content or they will by bypassed by new mobile broadband competitors that get it.

    Mobile is the New Video Distribution Platform

    O’Leary predicts that OTT, where the internet is used to bypass traditional content middlemen like cable, is the driving motivation that should entice broadband providers to enter the content space more aggressively over the next few years. He advocates mobile operators creating a “cloud based platform” and then partnering with content producers in order to “scale their video infrastructure efforts and deliver high-quality, live video and on-demand content to consumers on any device — be it their smartphone, tablet or connected television.”

    Content producers will likely consist of a wide variety of players from traditional sources like ESPN and Disney to well funded content upstarts such as such as Amazon, Apple, YouTube and Netflix. Content alliances between mobile operators may also include more direct deals with talent such as successful independent internet based content stars on YouTube, Vine and even Snapchat. Mobile is already the primary platform used to consume video content so the next step is to cut out the middleman and partner directly with popular content providers.

    “In growing numbers, consumers are replacing their traditional cable and satellite TV packages with smaller, more customized, and often less expensive mixes of programming, cobbled together from an array of online and on-demand services,” said O’Leary. “As more consumers replace their big-bundle TV packages with à la carte online offerings, an opportunity is emerging for mobile operators and other service providers to combine mobile broadband (MBB) packages with compelling “over the top” content.”

    Mobile operators should realize that they are the distribution platform for millennials, they are the network and they are the new cable and satellite companies. With that in mind, they don’t need the networks or cable to drive viewership and usage of their platform, they simply need great content however they can get it, even if it means becoming content creators themselves.

  • Verizon’s AOL Is Acquiring Millennial Media

    Verizon’s AOL Is Acquiring Millennial Media

    AOL, which as a reminder, is now owned by Verizon, announced on Thursday that it has entered agreement to acquire mobile ad platform Millennial Media. It’s paying $1.75/share, which comes to roughly $238 million.

    AOL says it will use Millennial Media to add a supply-side platform for app monetization with over 65,000 apps; add significant mobile brand advertising scale across ONE by AOL; gain access to a billion global active unique users and new cross-screen targeting capabilities; accelerate its mobile position in key international markets; and add “world-class” engineering, sales, and product talent.

    “AOL is well positioned as consumers spend more and more time on mobile devices, and as advertisers, agencies and publishers become more reliant on programmatic monetization tools,” said AOL President Bob Lord. “As we continue to invest in our platforms and technology, the acquisition of Millennial Media accelerates our competitive mobile offering in ONE by AOL and enhances our current publisher offering with an ‘all in’ monetization platform for app developers.”

    “By joining AOL, we will be adding additional mobile expertise to AOL’s growing technology assets,” added Michael Barrett, President & CEO of Millennial Media. “I am excited by what this acquisition means for our shareholders, our employees and our partners.”

    The deal will comes by way of tender offer to be followed by a merger. It’s expected to be completed this fall, and Millennial Media will become a wholly owned subsidiary of AOL.

    Image via Millennial Media

  • Verizon Wins in ‘Fastest Mobile Networks’ Study

    Verizon Wins in ‘Fastest Mobile Networks’ Study

    What’s the fastest wireless network in America?

    For the second year in a row, the crown goes to Verizon – at least according to a large study from PCMag.

    The publication, which claims to have “ran more test cycles than ever before: 131,000 cycles over 30 cities and thousands of miles of driving,” says that Verizon delivered the fastest speeds and overall best coverage. Out of the 30 major cities tested, Verizon won 16 of them. Verizon also won all the rural/suburban areas.

    Verizon scored an 89/100 on the speed index, offering an average LTE download speed of 19.1 Mbps. T-Mobile placed second with an 84/100. AT&T came in third with an 80/100.

    And Sprint brought up the real with a 69/100 score and a 12.7 Mbps average LTE download speed. Check out PCMag’s chart:

    Screen Shot 2015-06-24 at 11.50.49 AM

    When it came to 3G speeds, T-Mobile won.

    But according to the study, all of the major four networks stepped up their game. From PCMag:

    To some extent, everyone’s a winner, because heightened competition is the big story of our sixth annual Fastest Mobile Networks testing. For the past six years, Verizon and AT&T have traded off winning the national title, largely because of far superior high-speed coverage when compared with Sprint and T-Mobile. But T-Mobile emerged as a force to be reckoned with last year, and now, for the first time, Sprint is competitive. The results show that the big four carriers didn’t need to merge to succeed. They’re doing just fine.

    In the six years they’ve been doing this, 2015 provided the “most competitive wireless landscape” ever, they said.

    Image via Verizon News, Twitter

  • Verizon Now Officially Owns AOL

    Verizon Now Officially Owns AOL

    Verizon announced on Tuesday that it has already completed its acquisition of AOL.

    That didn’t take long, did it? The $4.4 billion deal was only announced last month. Now, Verizon says it has successfully completed its tender offer to purchase all of AOL’s outstanding shares for %50 per share in cash.

    Verizon says in its announcement:

    Verizon subsequently completed the acquisition of the remaining eligible AOL shares not acquired in the tender offer through a merger pursuant to Section 251(h) of the General Corporate Law of the State of Delaware. As a result, AOL shares will no longer be traded on the NYSE, and AOL is now a wholly owned subsidiary of Verizon.

    As of the expiration of the tender offer, approximately 47,522,501 shares were validly tendered and not withdrawn in the tender offer, representing 60.37 percent of AOL’s outstanding shares, according to the depositary for the tender offer. Notices of Guaranteed Delivery were delivered with respect to 2,767,607 additional shares, representing approximately 3.52 percent of AOL’s shares, according to the depositary. Verizon has accepted for payment and will promptly pay for all validly tendered (and not withdrawn) shares.

    All eligible AOL shares that were not validly tendered have been converted into the right to receive $50.00 per share in cash, without interest and less any applicable withholding taxes — the same price paid in the tender offer.

    In an expanded role, AOL CEO Tim Armstrong continues to lead AOL operations after the closing, and Bob Toohey, president of Verizon Digital Media Services, will report to Armstrong. Verizon Digital Media Services uses world-class technology to help companies prepare, deliver and display digital media content including video, web pages, applications, mobile ads and live events on any screen. Armstrong will report to Marni Walden, Verizon executive vice president and president of Product Innovation and New Businesses.

    The companies will hold a press conference today to further discuss the details.

    Despite speculation that Verizon would sell AOL’s content properties such as The Huffington Post, the companies have said that there are no such plans. Of course Twitter CEO Dick Costolo also said his job was safe about a week before he announced his resignation.

    We’ll be hearing plenty more about Verizon’s plans for AOL and its various properties in the near future.

    Image via YouTube

  • Will AOL Get Rid Of The Huffington Post Under Verizon?

    If you’ve been on the internet today, you probably know that Verizon is acquiring AOL, pending regulatory approval and closing conditions. While the announcement made no claims that AOL’s content properties would be spun off, reports at Re/code have suggested otherwise.

    As we referenced in an earlier article on the acquisition, Re/Code’s Peter Kafka suggested Verizon could decide to spin out AOL’s content operations with a third partner, “perhaps German publisher Axel Springer”.

    Re/Code’s Kara Swisher has since written:

    According to numerous sources, while it has been negotiating its deal to sell to Verizon, AOL has also been in advanced discussions with a number of parties to spin off its flagship Huffington Post content unit.

    The talks have been most serious with Axel Springer, the German media conglomerate, but a number of private equity firms have also expressed interest in the high-profile property. Sources said the Huffington Post has been valued at above $1 billion in this scenario, which would either be a complete sale or, more likely, structured as a joint venture.

    AOL has been sending around a statement in response to such reports (via Variety): “AOL owns a portfolio of premium, global content brands including The Huffington Post, TechCrunch and Endgadget, among others, and all of them will continue to be part of our business as we go forward.”

    Swisher says this contradicts what “several top AOL sources” told her this morning. As Kafka noted in his article, AOL CEO Tim Armstrong also said in the past that there was no truth to reports of a potential acquisition by Verizon.

    Image via Wikimedia Commons

  • Verizon, Sprint Pay $158M for ‘Cramming’ Bogus Charges

    Verizon, Sprint Pay $158M for ‘Cramming’ Bogus Charges

    The Federal Communications Commission has announced that Verizon and Sprint will pay a combined $158 million to settle “cramming” investigations, wherein the Commission found that the carriers were cramming unauthorized charges onto customers’ bills.

    The majority of such charges came from so-called “premium text services”.

    “For too long, consumers have been charged on their phone bills for things they did not buy,” said FCC Chairman Tom Wheeler. “We call these fraudulent charges ‘cramming,’ and with today’s agreements we are calling them history for Verizon and Sprint customers.”

    The FCC describes the scheme as such:

    The monthly charge for these third-party premium text messaging services ranged from $0.99 to $14.00, but typically were $9.99 per month. Verizon retained 30% or more of each third-party charge that it billed, while Sprint received approximately 35% of collected revenues for each of its third-party charges. Numerous consumers have complained to the FCC, other government agencies, and the carriers that they never requested or authorized the third-party services for which they were charged. Customers who called to complain were often denied refunds, and yet, when the FCC requested proof that customers had authorized charges, the carriers were unable to prove that these services were ever requested.

    The majority of the settlement will go toward customer refunds, in fact. Verizon’s $90 million chunk is divided as such: $70 million in refunds, $16 million for state governments, and a $4 million fine to the US Treasury. Sprint’s $68 million portion is divided as such: $50 million in refunds, $12 million to states, and a $6 million fine.

    “Consumers rightfully expect their monthly phone bills will reflect only those sevices that they’ve purchased,” said Travis LeBlanc, Chief of the FCC’s Enforcement Bureau. “Today’s settlements put in place strong protections that will prevent consumers from being victimized by these kinds of practices in the future.”

    With this joint settlement, all four major US carriers will have paid for their “cramming”. Last year, both AT&T and T-Mobile settled for $105 million and $90 million, respectively.

    Both Verizon and Sprint said that they rigorously “protect customers” and already have systems to refund premium text message charges in place.

    Image via Thinkstock

  • Verizon Is Buying AOL For $4.4 Billion

    Verizon Is Buying AOL For $4.4 Billion

    Verizon announced that it has signed an agreement to acquire AOL for $50 per share, in a deal valued at roughly $4.4 billion. Verizon is painting the acquisition as a “significant step in building digital and video platforms to drive future growth” and ” as driving its LTE wireless video and OTT (over-the-top video) strategy.

    The deal, Verizon says, will also support and connect its Internet of Things platforms.

    “Verizon’s vision is to provide customers with a premium digital experience based on a global multiscreen network platform. This acquisition supports our strategy to provide a cross-screen connection for consumers, creators and advertisers to deliver that premium customer experience,” said Verizon chairman and CEO Lowell McAdam. “AOL has once again become a digital trailblazer, and we are excited at the prospect of charting a new course together in the digitally connected world. At Verizon, we’ve been strategically investing in emerging technology, including Verizon Digital Media Services and OTT, that taps into the market shift to digital content and advertising. AOL’s advertising model aligns with this approach, and the advertising platform provides a key tool for us to develop future revenue streams.”

    According to Verizon, the combination of the two companies creates a “scaled, mobile-first platform” targeting the $600 billion global advertising industry. The deal of course includes AOL content brands like The Huffington Post, TechCrunch, Engadget, MAKERS and AOL.com, as well as millennial-focused OTT, original video content; and its programmatic advertising platforms.

    TIm Armstrong will remain chairman and CEO of AOL for the foreseeable future.

    He said, “Verizon is a leader in mobile and OTT connected platforms, and the combination of Verizon and AOL creates a unique and scaled mobile and OTT media platform for creators, consumers and advertisers. The visions of Verizon and AOL are shared; the companies have existing successful partnerships, and we are excited to work with the team at Verizon to create the next generation of media through mobile and video.”

    AOL’s TechCrunch shares an internal memo from Armstrong:

    AOLers –

    As you have heard me say many times over the last 5 years since we became an independent AOL, we are building toward becoming the largest media technology company in the world. While there are search platforms, social platforms, and commerce platforms, we have built a very meaningful media platform and AOL today is a media platform company powering our brands and the brands of over 30,000 partners.
    If there is one key to our journey to building the largest digital media platform in the world, it is mobile. Mobile will represent 80% of consumers’ media consumption in the coming years and if we are going to lead, we need to lead in mobile. Over the last 18 months we set a goal of moving AOL into a leading position in mobile, mobile video, and mobile registered consumers. We are approaching 400 million global consumers, we have built one of the best advertising platforms in the world, and we have one of the most talented teams in the world – and now it is time for us to fully open up the mobile frontier.

    Today, we are announcing that the largest and most innovative wireless and cable company – and the one investing the most in high quality mobile content – is acquiring AOL with the strategy of building the biggest media platform in the world. The company is Verizon and the deal will game-change the size and scale of AOL’s opportunity. Just as AOL has propelled The Huffington Post, Adap.tv, TechCrunch, and other companies we have acquired, Verizon will propel AOL and comes to the table with over 100 million mobile consumers, content deals with the likes of the NFL, and a meaningful strategy in mobile video.

    The decision to enter into an agreement with Verizon was made over a long and thoughtful time period and both companies see significant opportunity to service consumers and customers in a differentiated and exciting way. On a personal level, the decision to go forward with an agreement was predicated on giving our talent the best opportunity to build a multi-decade business that would be deeply growth oriented and aimed directly at the platform shift that video and mobile are offering the world – today and 20 years from now.

    There are two important questions you might have at this point in the letter:

    1. What does this mean?

    2. What does this mean for me (meaning you)?

    The deal means we will be a division of Verizon and we will oversee AOL’s current assets plus additional assets from Verizon that are targeted at the mobile and video media space. The deal will not change our strategy – it will expand it greatly. The deal will give our content businesses more distribution and it will give our advertisers more distribution and mobile-first features. The deal will add scale and it will add a mobile lens to everything we do inside of our content, video, and ads strategy.

    For you this means growth, it means mobile, and it means compensation that will be equal or better to your AOL compensation. Your benefits will not change in 2015. We will eventually go on Verizon’s benefit plan, but that won’t happen until 2016 or later and we will work with Verizon to make sure the benefits are strong and cover important areas of people’s lives. Your job and what you do on a daily basis should be enhanced by the market opportunity this deal is targeted to capture. The simple answer to the question of “what does this mean for you?” should be, “I just got more resources, more support and more growth opportunity.”

    The leadership at AOL is staying and I am staying – enthusiastically, and we made that part of the deal. We have the opportunity to build a unique and globally scaled media technology company with the scale and resources we need to make that happen. Verizon and AOL are very large partners today – in content, in ads, and in the technology. We know their team well and they know our team well. The cultures share very similar values and are both working on very similar ways to do good while doing well. Diversity and women’s leadership are at the top of both companies’ agendas and we look forward to having a consumer and industry impact on those important issues.

    The future in front of AOL and the industry requires scale, mobile, and video – and partnerships. In our lifetime, we will see the connection of the world on very large and very fast networks – and to play in that world with our strategy requires us to take the natural steps to secure our ability to shoot for the stars. This deal is aimed at the stars and we are going to pursue the joint vision of building the most significant media platform in the world.

    I have been a buyer of AOL over the last 5 years – and that is an investment in one thing – our talent. We have reviewed every hire coming into the company over the last 5 years and we have taken extraordinary risks and faced extraordinary challenges over the last 5 years. There is nothing more meaningful than watching our team turn-around this great company and restoring it to growth when most people had left it for dead.

    AOL is back and now we are joining forces with Verizon to build the best media technology company in the world. Let’s mobilize. – TA

    So what are people saying about the deal?

    The Wall Street Journal says it “suggests a crumbling empire more than it shows the power of the network,” making the case that while telecom giants like Verizon and AT&T aren’t going away, “their place in the world seems ever more insecure” as companies like Google and Facebook launch Internet from the air services and lay fiber in the ground, cable companies deploy Wi-Fi workarounds, mobile phone carriers push Wi-Fi as the default.

    “Verizon is certainly aware of the cross-device marketing opportunity,” writes Zach Rodgers at AdExchanger. “The company has an addressable advertising division, Precision Market Insights. That unit has experimented with – and gotten into some hot water over – a persistent mobile tracking mechanism that leveraged a unique ID header as a mobile cookie of sorts. After an outcry from privacy advocates over the improper use of that ID, the company changed the mechanism to be more privacy friendly.

    “The backlash may have been due in part to Verizon’s ‘service provider’ relationship, which in the eyes of consumers and regulators may be too weak to justify data collection,” he adds. “By accessing direct relationships with media consumers through AOL, Verizon’s mobile audience data business may not draw the same negative attention, and its work around mobile data collection may become as acceptable as it has for Facebook.”

    Re/code’s Peter Kafka suggests that Verizon may decide to spin out AOL’s content operations with a third partner, noting that Armstrong didn’t address such a scenario in an interview, but that he “seemed to leave the door open.”

    The New York Times reminds us that AOL “also manages a dwindling but profitable dial-up Internet business, providing online access for those who live in areas too remote to have broadband, or who never canceled their subscriptions.”



    The actual transaction will take place as a tender offer followed by a merger, with AOL becoming a wholly owned subsidiary of Verizon, though the deal is obviously subject to regulatory approval and closing conditions. The companies expect the deal to close sometime this summer.

    AOL reported its quarterly earnings last week. Highlights included: fastest multi-platform user growth among top 5 internet properties; accelerating ad revenue growth; 80% programmatic growth surging to 45% of global brand ad revenue; strong growth in video, mobile, programmatic, and native ad revenue; and global ad pricing growth of over 10%.

    Image: Tim Armstrong via Wikimedia Commons

  • Verizon Gave a Grandmother a Heart Attack, Alleges Suit

    A 53-year-old grandmother, who says she usually doesn’t believe in suing, is suing Verizon Wireless for allegedly causing her to have a heart attack with bad customer service.

    Angela Hawkins of Chesapeake is suing the telecom for $2.35 million after she says a customer service call turned ugly. Hawkins claims she called Verizon to discuss a missing $60 credit and after 20 minutes of taking to the customer service rep she was transferred to a supervisor. Apparently, the supervisor accused Hawkins of threatening his rep and quickly took thing to 11.

    From the Virginian-Pilot:

    When the supervisor came on the line, the lawsuit said, he indicated that Hawkins had threatened his employee and that he was calling the police.

    Hawkins said she was shocked anyone would say something like that about her. She felt lightheaded and quickly got off the phone and sat on her couch. She talked to her husband about what happened and checked her blinds several times in anticipation of police cars.

    Jeffrey Brooke, Hawkins’ attorney, said the threat of arrest really shook his client.

    “She had visions of SWAT guys breaking her door down and putting her in leg shackles,” he said.

    But no SWAT arrived, and Hawkins claims the supervisor later called to apologize. The next day, Hawkins went to the doctor, had an EKG, and was told she’d had a heart attack. She was subsequently admitted to the hospital and had a stint placed in her heart.

    Apparently, her medical bills plus future medication costs total around $180,000. The rest of the lawsuit is for “infliction of emotional distress.”

    Verizon has its fair share of customer service problems, but aren’t you a little surprised that this story isn’t about Comcast?

    Image via M.O. Stevens, Wikimedia Commons

  • Did The FCC Get Net Neutrality Right?

    Did The FCC Get Net Neutrality Right?

    As you may have heard, the FCC announced that it has set rules on net neutrality and an open Internet, which it says “will protect free expression and innovation on the Internet and promote investment in the nation’s broadband networks.”

    Do you think they got it right or do there need to be changes? Let us know what you think.

    Back in November, President Obama urged the FCC to reclassify Internet service under Title II of the Telecommunications Act, which would make it a utility, and the FCC has done so. Broadband is considered a telecommunications service, and providers are to be regulated.

    The FCC says in its announcement:

    The FCC has long been committed to protecting and promoting an Internet that nurtures freedom of speech and expression, supports innovation and commerce, and incentivizes expansion and investment by America’s broadband providers. But the agency’s attempts to implement enforceable, sustainable rules to protect the Open Internet have been twice struck down by the courts.

    Today, the Commission—once and for all—enacts strong, sustainable rules, grounded in multiple sources of legal authority, to ensure that Americans reap the economic, social, and civic benefits of an Open Internet today and into the future. These new rules are guided by three principles: America’s broadband networks must be fast, fair and open—principles shared by the overwhelming majority of the nearly 4 million commenters who participated in the FCC’s Open Internet proceeding.

    Absent action by the FCC, Internet openness is at risk, as recognized by the very court that struck down the FCC’s 2010 Open Internet rules last year in Verizon v. FCC.

    Broadband providers have economic incentives that “represent a threat to Internet openness and could act in ways that would ultimately inhibit the speed and extent of future broadband deployment,” as affirmed by the U.S. Court of Appeals for the District of Columbia. The court upheld the Commission’s finding that Internet openness drives a “virtuous cycle” in which innovations at the edges of the network enhance consumer demand, leading to expanded investments in broadband infrastructure that, in turn, spark new innovations at the edge.

    However, the court observed that nearly 15 years ago, the Commission constrained its ability to protect against threats to the open Internet by a regulatory classification of broadband that precluded use of statutory protections that historically ensured the openness of telephone networks. The Order finds that the nature of broadband Internet access service has not only changed since that initial classification decision, but that broadband providers have even more incentives to interfere with Internet openness today. To respond to this changed landscape, the new Open Internet Order restores the FCC’s legal authority to fully address threats to openness on today’s networks by following a template for sustainability laid out in the D.C. Circuit Opinion itself, including reclassification of broadband Internet access as a telecommunications service under Title II of the Communications Act.

    With a firm legal foundation established, the Order sets three “bright-line” rules of the road for behavior known to harm the Open Internet, adopts an additional, flexible standard to future-proof Internet openness rules, and protects mobile broadband users with the full array of Open Internet rules. It does so while preserving incentives for investment and innovation by broadband providers by affording them an even more tailored version of the light-touch regulatory treatment that fostered tremendous growth in the mobile wireless industry.

    The new rules apply to both fixed and mobile broadband, and prohibit broadband providers from blocking access to legal content, apps, services, or non-harmful devices. They also prohibit providers from impairing or degrading lawful internet traffic on the basis of content, apps, services, or non-harmful devices. Providers may not favor some lawful Internet traffic over other lawful Internet traffic “in exchange for consideration of any kind”. In other words, no fast lanes. ISPs are banned from prioritizing content and services of affiliates.

    You can find the full announcement here (PDF).

    The matter is far from settled. Republicans in Congress have reportedly proposed legislation to throw out the Title II restrictions on providers.

    Here’s what people are saying on Twitter:




    Naturally, plenty of companies are weighing in with their comments. Here are Verizon’s:

    If you click the link for the “translated’ version, you’re taken to a news release dated for 1934 in a font that looks like this:

    You get the idea.

    AT&T Senior Executive Vice President Jim Cicconi said:

    To be sure, one must have principles and a philosophy of government’s proper role. But a democracy cannot function when either side lapses into rigidity. Or worse, when political advantage becomes more important than the nation’s best interest.

    In our little world, and in my decades of interaction with it, I’ve felt, and still feel, that the FCC has tried to stay focused on solving problems and avoided turning issues into dogma. Every chairman in my memory, including the current one, has faced political stampedes of one sort or another. Yet the agency has always tried to find a middle ground and a consensus win. They’ve understood that a win, unlike a fight, is the product of reaching out to both sides, and working in a bipartisan way to find a solution. A win is the product of compromise, thoughtful policy, and a genuine desire to find the answer to a complex set of issues.

    We had such a situation – and a bipartisan win – in the 2010 net neutrality rule. Unfortunately, this was undone by a court decision, facing us with the same situation a second time. Today, an Administration and an FCC that appeared headed toward another bipartisan win on net neutrality were driven instead to a partisan fight. The 3-2 FCC vote, along party lines, for sweeping new regulation of the Internet, is a rejection of the compromise win and an embrace, however reluctant, of the political fight. It’s unfortunate that this single issue, more than any other, has over the course of ten years caused a divisive spirit to spread to an agency that has long sought unanimity on significant long term issues, and generally found it. A 5-0 decision doesn’t leave a lot of room for either side to continue the argument, while a 3-2 decision, particularly on issues of such broad scope, is an invitation to revisiting the decision, over and over and over.

    Full statement here.

    Sprint’s response:

    Sprint has been a leader in supporting an open Internet and commends the FCC for its hard work in arriving at a thoughtful, measured approach on this important issue. We believe balanced net neutrality rules with a light regulatory touch will benefit consumers, while fostering mobile broadband competition, investment and innovation in the United States. We look forward to reviewing the FCC order and continuing to work with policymakers to ensure consumers benefit from an open Internet.

    Here’s the latest from T-Mobile:

    Netflix, which has been a very vocal member of the debate says:

    “The net neutrality debate is about who picks winners and losers online: Internet service providers or consumers. Today, the FCC settled it: Consumers win.

    Today’s order is a meaningful step towards ensuring ISPs cannot shift bad conduct upstream to where they interconnect with content providers like Netflix. Net neutrality rules are only as strong as their weakest link, and it’s incumbent on the FCC to ensure these interconnection points aren’t used to end-run the principles of an open Internet.

    Given the lack of competition among broadband providers, today’s other FCC decision preventing regulations that thwart local investment in new broadband infrastructure also is an important step toward ensuring greater consumer choice. These actions kick off a new era that puts the consumer, not litigious corporate giants, at the center of competition policy.”

    The ACLU says, “This is a victory for free speech, plain and simple. Americans use the internet not just to work and play, but to discuss politics and learn about the world around them. The FCC has a critical role to play in protecting citizens’ ability to see what they want and say what they want online, without interference. Title II provides the firmest possible foundation for such protections. We are still sifting through the full details of the new rules, but the main point is that the internet, the primary place where Americans exercise their right to free expression, remains open to all voices and points of view.”

    Mozilla says, “This is an important victory for the world’s largest public resource, the open Web. Net neutrality is a key aspect of enabling innovation from everywhere, and especially from new players and unexpected places. Net neutrality allows citizens and consumers to access new innovations and judge the merit for themselves. It allows individual citizens to make decisions, without gate-keepers who decide which possibilities can become real. Today’s net neutrality rules help us protect this open and innovative potential of the Internet.”

    The FCC received over 4 million public comments over the past year, which the commission used to help “shape” its rules.

    Do you consider the FCC’s rules to be a win for the Internet? Let us know.

    Image: FCC Chairman Tom Wheeler (Wikimedia Commons)

  • Should The Internet Be Reclassified As Obama Requests?

    Should The Internet Be Reclassified As Obama Requests?

    In an effort to protect an open Internet, President Obama announced that he’s asking the FCC to reclassify Internet service under Title II of the Telecommunications Act.

    “In plain English, I’m asking them to recognize that for most Americans, the Internet has become an essential part of everyday communication and everyday life,” he said, noting that the FCC is an independent agency, and that ultimately, it’s their decision.

    Do you agree with the President? Share your thoughts on the matter in the comments.

    “The public has already commented nearly four million times, asking the FCC to make sure that consumers – not the cable company – gets to decide which sites they use,” the President said.

    In the official statement, the President notes that this should all be extended to mobile broadband as this is increasingly how Americans are accessing the Internet.

    Earlier this year, the FCC said it was working on rules that could end up giving priority to big companies. As you may recall, most people on the Internet weren’t incredibly thrilled.

    More on Title II of the Telecommunications Act here.

    The President’s full statement is as follows:

    An open Internet is essential to the American economy, and increasingly to our very way of life. By lowering the cost of launching a new idea, igniting new political movements, and bringing communities closer together, it has been one of the most significant democratizing influences the world has ever known.

    “Net neutrality” has been built into the fabric of the Internet since its creation — but it is also a principle that we cannot take for granted. We cannot allow Internet service providers (ISPs) to restrict the best access or to pick winners and losers in the online marketplace for services and ideas. That is why today, I am asking the Federal Communications Commission (FCC) to answer the call of almost 4 million public comments, and implement the strongest possible rules to protect net neutrality.

    When I was a candidate for this office, I made clear my commitment to a free and open Internet, and my commitment remains as strong as ever. Four years ago, the FCC tried to implement rules that would protect net neutrality with little to no impact on the telecommunications companies that make important investments in our economy. After the rules were challenged, the court reviewing the rules agreed with the FCC that net neutrality was essential for preserving an environment that encourages new investment in the network, new online services and content, and everything else that makes up the Internet as we now know it. Unfortunately, the court ultimately struck down the rules — not because it disagreed with the need to protect net neutrality, but because it believed the FCC had taken the wrong legal approach.

    The FCC is an independent agency, and ultimately this decision is theirs alone. I believe the FCC should create a new set of rules protecting net neutrality and ensuring that neither the cable company nor the phone company will be able to act as a gatekeeper, restricting what you can do or see online. The rules I am asking for are simple, common-sense steps that reflect the Internet you and I use every day, and that some ISPs already observe. These bright-line rules include:

    No blocking. If a consumer requests access to a website or service, and the content is legal, your ISP should not be permitted to block it. That way, every player — not just those commercially affiliated with an ISP — gets a fair shot at your business.

    No throttling. Nor should ISPs be able to intentionally slow down some content or speed up others — through a process often called “throttling” — based on the type of service or your ISP’s preferences.

    Increased transparency. The connection between consumers and ISPs — the so-called “last mile” — is not the only place some sites might get special treatment. So, I am also asking the FCC to make full use of the transparency authorities the court recently upheld, and if necessary to apply net neutrality rules to points of interconnection between the ISP and the rest of the Internet.

    No paid prioritization. Simply put: No service should be stuck in a “slow lane” because it does not pay a fee. That kind of gatekeeping would undermine the level playing field essential to the Internet’s growth. So, as I have before, I am asking for an explicit ban on paid prioritization and any other restriction that has a similar effect.

    If carefully designed, these rules should not create any undue burden for ISPs, and can have clear, monitored exceptions for reasonable network management and for specialized services such as dedicated, mission-critical networks serving a hospital. But combined, these rules mean everything for preserving the Internet’s openness.

    The rules also have to reflect the way people use the Internet today, which increasingly means on a mobile device. I believe the FCC should make these rules fully applicable to mobile broadband as well, while recognizing the special challenges that come with managing wireless networks.

    To be current, these rules must also build on the lessons of the past. For almost a century, our law has recognized that companies who connect you to the world have special obligations not to exploit the monopoly they enjoy over access in and out of your home or business. That is why a phone call from a customer of one phone company can reliably reach a customer of a different one, and why you will not be penalized solely for calling someone who is using another provider. It is common sense that the same philosophy should guide any service that is based on the transmission of information — whether a phone call, or a packet of data.

    So the time has come for the FCC to recognize that broadband service is of the same importance and must carry the same obligations as so many of the other vital services do. To do that, I believe the FCC should reclassify consumer broadband service under Title II of the Telecommunications Act — while at the same time forbearing from rate regulation and other provisions less relevant to broadband services. This is a basic acknowledgment of the services ISPs provide to American homes and businesses, and the straightforward obligations necessary to ensure the network works for everyone — not just one or two companies.

    Investment in wired and wireless networks has supported jobs and made America the center of a vibrant ecosystem of digital devices, apps, and platforms that fuel growth and expand opportunity. Importantly, network investment remained strong under the previous net neutrality regime, before it was struck down by the court; in fact, the court agreed that protecting net neutrality helps foster more investment and innovation. If the FCC appropriately forbears from the Title II regulations that are not needed to implement the principles above — principles that most ISPs have followed for years — it will help ensure new rules are consistent with incentives for further investment in the infrastructure of the Internet.

    The Internet has been one of the greatest gifts our economy — and our society — has ever known. The FCC was chartered to promote competition, innovation, and investment in our networks. In service of that mission, there is no higher calling than protecting an open, accessible, and free Internet. I thank the Commissioners for having served this cause with distinction and integrity, and I respectfully ask them to adopt the policies I have outlined here, to preserve this technology’s promise for today, and future generations to come.

    FCC Chairman Tom Wheeler has issued a response.

    “The President’s statement is an important and welcome addition to the record of the Open Internet proceeding, ” he began. “Like the President, I beleve that the Internet must remain an open platform for free expression, innovation, and economic growth. We both oppose Internet fast lanes. The Internet must not advantage some to the detriment of others. We cannot allow broadband networks to cut special deals to prioritize Internet traffic and harm consumers, competition and innovation.”

    “The more deeply we examined the issues around the various legal options, the more it has become plain that there is more work to do,” he said later in the statement. “The reclassification and hybrid approaches before us raise substantive legal questions. We found we would need more time to examine these to ensure that whatever approach is taken, it can withstand any legal challenges it may face. For instance, whether in the context of a hybrid or reclassification approach, Title II brings with it policy issues that run the gamut from privacy to universal service to the ability of federal agencies to protect consumers, as well as legal issues ranging from the ability of Title II to cover mobile services to the concept of applying forbearance on services under Title II.”

    You can read the whole thing at the link above.

    Verizon has released a statement in response to the President’s words: “Verizon supports the open Internet, and we continue to believe that the light-touch regulatory approach in place for the past two decades has been central to the Internet’s success. Reclassification under Title II, which for the first time would apply 1930s-era utility regulation to the Internet, would be a radical reversal of course that would in and of itself threaten great harm to an open Internet, competition and innovation. That course will likely also face strong legal challenges and would likely not stand up in court. Moreover, this approach would be gratuitous. As all major broadband providers and their trade groups have conceded, the FCC already has sufficient authority under Section 706 to adopt rules that address any practices that threaten harm to consumers or competition, including authority to prohibit ‘paid prioritization.’ For effective, enforceable, legally sustainable net neutrality rules, the Commission should look to Section 706.”

    AT&T said the White House’s announcement, if acted upon by the FCC, would be a “mistake that will do tremendous harm to the Internet and to the U.S. national interests.”

    Comcast said, “To attempt to impose a full-blown Title II regime now, when the classification of cable broadband has always been as an information service, would reverse nearly a decade of precedent, including findings by the Supreme Court that this classification was proper. This would be a radical reversal that would harm investment and innovation, as today’s immediate stock market reaction demonstrates. And such a radical reversal of consistent contrary precedent should be taken up by the Congress.”

    TechCrunch has longer statements from these providers. Then you have organizations like the ACLU and Internet Association weighing in.

    “Today, President Obama is a free speech champion,” the ACLU said. “He deserves an enormous amount of credit for unequivocally calling on the FCC to adopt rules that will finally allow the agency to protect the free and open internet. Preventing ‘fast lanes’ and discrimination against some content producers on the internet is one of the most important free speech issues of the digital age. Large broadband providers should not be allowed to slow or block content from their competitors or because the content may be controversial.”

    “The Internet Association applauds President Obama’s proposal for the adoption of meaningful net neutrality rules that apply to both mobile and fixed broadband,” said the Internet Association. “As we have previously said, the FCC must adopt strong, legally sustainable rules that prevent paid prioritization and protect an open Internet for users. Using Title II authority, along with the right set of enforceable rules, the President’s plan would establish the strong net neutrality protections Internet users require. We welcome the President’s leadership, and encourage the FCC to stand with the Internet’s vast community of users and move quickly to adopt strong net neutrality protections that ensure a free and open Internet.”

    Netflix, which just posted its monthly ISP speed rankings data, has also voiced support for the President.

    Well, you’ve heard a lot from both proponents and opponents of Obama’s request, as well as the FCC itself, which as the President says, ultimately has to make the decision. Where do you land on the debate? Let us know in the comments.

    Image via YouTube

  • Redbox Instant Is Already Officially Dead

    Redbox Instant Is Already Officially Dead

    Redbox Instant, which was once considered a possible threat to Netflix, is already shutting down less than two years after its launch. Of course it was really only considered a threat to Netflix before its launch, which was completely underwhelming with a very lackluster catalog compared to the streaming giant’s.

    Redbox Instant was the result of a partnership between Redbox parent Outewrall (originally Coinstar) and Verizon The service actually carried the Verizon brand under the banner Redbox Instant by Verizon. A message on the service’s site says:

    Thank you for being a part of Redbox Instant by Verizon. Please be aware that the service will be shut down on Tuesday, October 7, 2014, at 11:59 p.m. Pacific Time.

    Information on applicable refunds will be emailed to current customers and posted here on October 10.

    In the meantime, you may continue to stream movies and use your Redbox kiosk credits until Tuesday, October 7 at 11:59 p.m. Pacific Time.

    We apologize for any inconvenience and we thank you for the opportunity to entertain you.

    Sincerely,
    The Redbox Instant by Verizon Team

    Some now wonder how long Redbox itself will be around as physical discs work their way closer to obsolescence.

    Image via Redbox Instant

  • Verizon Internet: Two Major Upcoming Changes

    This past week, Verizon announced that it will be making two major adjustments to the data usage of its customers—increasing upload speeds to match download speeds for nearly all of its FiOS service subscribers and limiting the data speeds for the top five percent of data users for its 4G network, according to the Los Angeles Times and Forbes respectively.

    The first change, announced in a news release this past Monday, comes with Verizon’s expectation that its users’ upload activity will double by the end of 2016. The increasing of upload speeds will allow users to upload videos to sites like YouTube nearly as quickly as downloading videos they want to watch.

    Verizon has about 6 million subscribers and its FiOS service—which relies on fiber-optic cables that allow for both faster download and upload speeds—is available in 20 markets, including 1.4 million households in Los Angeles.

    Verizon’s lowest plan, 15 megabytes per second download and 5 megabytes per second upload, will rise to 15-15, and the highest tier, 500-100, will switch to 500-500 in the coming months.

    The other major adjustment Verizon will make is the limiting of data speeds for the five percent of customers that use the most data on its 4G network. Called the “network optimization policy,” users that fall in this category will see their speeds grow slower when they use a cell site that is experiencing heavy demand, such as a buffering in internet gaming or a lagging of web browsing.

    The network optimization policy will affect the top five percent of users that have passed their minimum contract term and consume around 4.7GB of data per month or more.

    “We understand that our customers rely on their smartphones and tablets every day. Our network optimization policy provides the best path to ensure a continued great wireless experience for all of our customers on the best and largest wireless network in the U.S.,” said Verizon Wireless VP of Technology Mike Haberman in a statement.

    Verizon will notify customers of the network optimization policy through a message on August 1.

    Image via Wikimedia Commons

  • Netflix Releases Latest ISP Rankings

    Netflix Releases Latest ISP Rankings

    Netflix just released its new ISP Speed Index data for the month of June. This time, they’ve added icons to the U.S. graph to “increase transparency” about the type of technology used by an ISP.

    “This should make it easier to compare Netflix performance on different types of networks,” says Netflix’s Anne Marie Squeo.

    As usual, Cablevision, Cox, and Suddenlink lead in the U.S. Each has shown “stead improvements” over the past three months, Netflix says. Verizon FiOS continues to decline, falling two spots from last month to number 12. Verizon FiOS and AT&T U-Verse rank behind DSL offerings from Frontier, Windstream, and Centurylink, Netflix points out.

    Last week, Verizon spoke out about its ongoing feud with Netflix. It placed the buffering blame on Netflix, while saying:

    Even though there is no congestion on our network, we’re not satisfied if our customers are not. We fully understand that many of our customers want a great streaming experience with Netflix, and we want that too. Therefore, we are working aggressively with Netflix to establish new, direct connections from Netflix to Verizon’s network. This doesn’t “prioritize” Netflix traffic in any way, but it ensures that their traffic gets on our network through direct connections—not middleman networks—that are up to the task.

    The benefit of these direct connections will be two-fold. First, Verizon customers who use Netflix will have a significantly improved experience as Netflix traffic flows over non-congested links. Early tests indicate that this is the case. The other benefit will be that the congestion that we are seeing today on those links between these middleman networks and our L.A. border router will likely go away once the huge volume of Netflix traffic is routed more efficiently. This will improve performance for any other traffic that is currently being affected over those connections.

    Here’s a look at Netflix’s U.S. ISP rankings:

    You can get a look at the previous month’s data here.

    Image via Netflix