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  • Netflix Updates ISP Speed Index, Says ISP Messages Just A Test

    Netflix Updates ISP Speed Index, Says ISP Messages Just A Test

    Netflix has released its latest ISP Speed Index data right as ISP speeds are a hot button issue in the industry (even more than usual), particularly as they relate to Netflix.

    If you hadn’t heard, Netflix was showing Verizon users messages saying, “The Verizon network is crowded right now. Adjusting video for smoother playback.” These appeared as users had issues watching content. Verizon sent the company a cease and desist letter.

    Netflix indicates in a blog post that such messages are just part of a “small scale” test it’s running, and it hasn’t determined whether or not it will keep the feature, and roll it out to all users. For now, the test is running through June 16th.

    Joris Evers from the company’s communications team writes:

    Some broadband providers argue that our actions, and not theirs, are causing a degraded Netflix experience. Netflix does not purposely select congested routes. We pay some of the world’s largest transit networks to deliver Netflix video right to the front door of an ISP. Where the problem occurs is at that door — the interconnection point — when the broadband provider hasn’t provided enough capacity to accommodate the traffic their customer requested.

    Some large US ISPs are erecting toll booths, providing sufficient capacity for services requested by their subscribers to flow through only when those services pay the toll. In this way, ISPs are double-dipping by getting both their subscribers and Internet content providers to pay for access to each other. We believe these ISP tolls are wrong because they raise costs, stifle innovation and harm consumers. ISPs should provide sufficient capacity into their network to provide consumers the broadband experience for which they pay.

    Here’s a glance at the latest ISP speed index for the U.S.:

    Anyone else have trouble watching Orange is the New Black with Time Warner on Friday night?

    Image via Netflix

  • Netflix Reportedly Makes Comcast-Like Deal With Verizon

    Netflix has reportedly reached a new deal with Verizon for access to its network so it can provide a higher quality streaming experience to its customers. This is similar to a highly publicized deal Netflix recently made with Comcast.

    There doesn’t appear to be an official announcement on the new deal from Netflix yet, but The Verge shares this statement from the company for confirmation:

    We have reached an interconnect arrangement with Verizon that we hope will improve performance for our joint customers over the coming months.

    Details of the agreement are unknown.

    Here’s what Netflix CEO Reed Hastings had to say about the Comcast deal.

    These deals come as Netflix and Comcast have been engaged in a very public war of words, and a controversial new stance from the FCC on net neutrality. Netflix opposes Comcast’s proposed merger with Time Warner, and has been regularly voicing this stance in various media. Comcast has put out multiple statements saying Netflix’s opposition is based on inaccuracies.

    There were reports earlier this year saying that Verizon was slowing Netflix down on purpose, though Verizon denied this, saying:

    We treat all traffic equally, and that has not changed. Many factors can affect the speed of a customer’s experience for a specific site, including that site’s servers, the way the traffic is routed over the Internet and other considerations.

    Netflix, Verizon, and Comcast will all have presences at the sixth annual Content Delivery Summit in New York on May 12th. You can see the full topic list here.

    Image via YouTube

  • No-Contract Phones Are Found To Be More Expensive Than Subsidized Devices

    No-Contract Phones Are Found To Be More Expensive Than Subsidized Devices

    No-contract phones are all the rage these days thanks to T-Mobile. The wireless carrier ditched contracts last year and instead adopted a business model that allows consumers to pay off their new phone in small monthly payments. Other carriers have adopted this new model alongside other pre-paid plans that require consumers to pay for the entire device up front. The thinking goes that consumers will save more money in the long run if they go with a no-contract plan, but that doesn’t appear to be the case.

    The Wall Street Journal recently took a look at the price of a contract plan versus a no-contract plan and found some interesting results. For instance, a consumer looking to buy an iPhone at Verizon will find that the contract plan will actually save them $175 over two years.

    Wait, how does that work? The math shows that an iPhone costs $200 at the time of purchase plus a $35 activation fee when a consumer goes with a subsidized plan under contract. After that, the consumer will pay $75 a month for two years. Under its no-contract plan, Verizon customers don’t pay an activation fee and the monthly cost goes down to $65 a month. That sounds awesome until consumers realize they have to pay an extra $27 a month over the next two years to pay off the phone. At the end of the day, the contract plan costs $2,035 over the course of two years while the no-contract plan costs $2,210.

    AT&T and T-Mobile have similar costs for consumers that choose to go for a no-contract plan. While they may not be saving money, they are securing peace of mind as the absence of a contract allows them to switch carriers at any time without any penalties. The only “penalty” would be that they would have to pay off the remaining balance on the phone, but said phone is theirs to keep after it’s paid off. In other words, a consumer could pay off a phone on Verizon and take it to T-Mobile without any problems.

    So, what’s the benefit of going with a no-contract plan over a contract beyond peace of mind? According to Verizon, the true benefit comes when a person wants to add more data or devices. Due to monthly fees being lower on no-contract plans, those looking to add more devices do stand to save a bit more money in the long run. It’s nothing major, but it’s something to look at when looking to switch carriers and/or plans.

    Still having trouble deciding whether to go no-contract or contact with your next device? As it turns out, plenty of YouTube personalities have struggled with same choice and have shared their thoughts. There might be some advice below that applies to your specific situation:

    If you need any more convincing to go the no-contract route, T-Mobile says you’ll be as free as Tim Tebow:

    Wait, is that a good thing?

    Image via T-Mobile

  • Mobile Data Plans: Data Makes Up 98 Percent Of Mobile Network Traffic

    Mobile Data Plans: Data Makes Up 98 Percent Of Mobile Network Traffic

    Mobile data plans are expensive. There doesn’t seem to be any good reason for the high prices or data caps either. The mobile carriers get away with it by saying its a scarce commodity, and that narrative can continue thanks to a new study out this week.

    Amdocs released its Annual State of the Radio Access Network Survey this week. The survey looked at 100,000 mobile devices across the busiest networks around the world. The big finding from the survey is that 98 percent of mobile network traffic is now being used to share and consume data. That’s up from 90 percent during the last 12 month period.

    Another interesting finding is that all this data consumption is leading to an increase in dropped calls. The survey found that dropped data and voice calls increased by 121 percent from the previous year with the most stressed locations having a 17 percent dropped call rate.

    Despite all this talk of mobile devices consuming more data, they aren’t consuming that much more high bandwidth data, like video. This particular fact is a little odd as 4G LTE gives users an experience similar to home broadband and it’s certainly capable of streaming video. Of course, it would seem that mobile device owners are aware of data caps and restrict themselves to avoid overages. Speaking of which, the survey also found that 30 percent of customers are frustrated with said data caps.

    With all this in mind, consumers are on the prowl for a data plan that gives them plenty of data while not breaking the bank. T-Mobile is arguably the king in this regard as the mobile carrier has been on a crusade to kill all the things consumers hate about mobile carriers. In 2013, it introduced unlimited 4G data plans. It went even further earlier this week by eliminating overage fees for those not on the carrier’s unlimited data plan.

    Sprint also offers unlimited data, but its plans are a little weirder thanks to its “Framily” plan. The plan allows friends and family members to all jump onto the same shared plan with each device getting 1GB of data per month. For those who want unlimited data, they’ll have to pay an extra $20 per device. It’s not the worst in the world, and the ability to add friends to your plan is a nice touch; but T-Mobile is definitely better when it comes to unlimited data.

    What about the other carriers then? AT&T and Verizon have conceded little ground in the wake of T-Mobile’s un-carrier approach, but the two largest mobile carriers in the country have changed their approach to mobile data just a bit nonetheless. AT&T slashed the price of its family, business and individual plans. While the 2GB data cap remains intact, consumers aren’t paying nearly as much as they once were.

    As for Verizon, the carrier introduced the “More Everything” plan earlier this week to help reduce consumers’ monthly bill. Unfortunately, it doesn’t make data cheaper, but it does reduce the monthly device cost by $10 to $30 per device per month.

    As mobile devices consume more data, consumers are going to be hunting for the best deal. T-Mobile certainly has the most to gain with its consumer friendly approach to data consumption, but AT&T and Verizon can still claim to have the faster networks. As long as that remains the case, the nation’s two largest carriers can continue enforcing data caps. Consumers can only hope that T-Mobile puts enough pressure on them that they drop caps sooner rather than later.

    Image via TMobile/YouTube

  • Verizon Announces New “MORE Everything” Deal

    Verizon today announced a new pricing initiative that could provide subscribers with significant savings.

    The new pricing scheme will bring lower “MORE Everything” pricing to its month-to-month customers. Starting on April 17 Verizon customers on a month-to-month contract will be able to join a MORE Everything plan and see an immediate discount for their device fee.

    Customers who take Verizon up on this offer can sigh up for a MORE Everything plan with a data cap of 8GB or below and pay only $30 per month to add a smartphone to the plan. This is $10 less than the $40 Verizon charges month-to-month customers to use a smartphone on their plan. Verizon customers who sign up for a Verizon Edge plan and purchase a new smartphone from Verizon will also receive the lower monthly access price.

    The deal should provide a slight discount for Verizon subscribers who have already paid off their smartphone device. The device will, of course, have to be compatible with Verizon’s network.

    Verizon’s announcement is yet another significant change that has come to the U.S. mobile market over the past year. Since last year T-Mobile, the fourth-largest mobile provider in the U.S., has been announcing a series of initiatives meant to increase subscriber numbers. T-Mobile’s offers have created significant competition in the mobile space, forcing larger carriers such as Verizon to announce plans such as the MORE Everything.

    In the midst of this change, U.S. mobile providers are gearing up for more intense competition in the coming years. Market watchers are now seeing the U.S. smartphone segment begin to saturate as consumers upgrade to smartphones. This has led to an ever-shrinking pool of potential new customers – the engine that mobile providers have been running on for years. With so few new customers to gain, mobile providers are now battling for customer retention while developing new monetization schemes (some of them very shady).

  • Netflix Prices Won’t Rise Much After Comcast Deal

    The popularity of Netflix has skyrocketed over the past few years, to the point that it has become a staple of daily life for college students, elementary schoolers, various media nerds, and proper adults alike. With instant streaming of beloved classics like Doctor Who and Firefly, as well as innovative, intriguing original content (Orange is The New Black, anyone?) right alongside one another, Netflix has created a unique and accessible form of media consumption that is really changing the game. It makes sense, then, that people might get a little panicky about the possibility of Netflix becoming less accessible.

    On Monday, after Netflix customers complained about slow connections to Verizon’s FiOS service, Verizon’s chief executive said that Netflix would need to pay the telecom company for faster speeds. That same day, AT&T spokesman Mark Siegel was quoted as saying, “we’re in discussions with Netflix to establish a more direct connection between our networks, similar to agreements we have with others, so that AT&T broadband customers who use Netflix can enjoy an even better video experience.” Discussions with telecom companies gained broader conversational space on Sunday, when Netflix agreed to pay Comcast Corp for faster speeds, so as to better satisfy their customers.

    This lead to talk of Netflix prices rising, which understandably upset some folks. After all, one of the big appeals that Netflix has going for it is that it is friendly with almost any budget; $7.99 a month for unlimited access to thousands of television programs and movies is a pretty awesome deal, especially when it can be played through laptops and gaming consoles as well as televisions.

    There’s probably no need to worry, though, as Dan Rayburn, an analyst with Frost Sullivan, says that Netflix’s new deal with Comcast (where in Netflix will pay for direct access to Comcast’s broadband network) will ultimately save Netflix money, meaning that prices likely won’t be rising for customers, or at least not significantly. Michael Pachter, an analyst with Wedbush Securities, speculates that Netflix might raise its ,monthly fee by one or two dollars, but that these changes will likely be driven by a variety of factors, not just the comcast deal.

    So, Netflix addicts can sleep soundly, knowing that their access to instant streaming of their favorite shows and films won’t be taken from them, at least not anytime soon.

    Image via Netflix’s Facebook page.

  • Will The FCC’s New Net Neutrality Rules Protect Consumers And Small Businesses?

    Will The FCC’s New Net Neutrality Rules Protect Consumers And Small Businesses?

    In January, the open Web took a major hit when a court sided with Verizon over the FCC’s net neutrality rules. The defeat meant that Verizon or any other ISP could throttle certain types of traffic in favor of others. While the FCC could appeal the ruling, the Commission is apparently not going that route.

    Reuters is reporting that the FCC will not be appealing the Verizon case instead opting to rewrite the rules. In last month’s ruling, the court said the FCC had the authority to regulate broadband access. FCC Chairman Tom Wheeler will reportedly be using this authority as a jumping point to bring back the non-discrimination rules found in the original net neutrality rules.

    Do you think the FCC is right to not appeal? Should new rules be written? Let us know in the comments.

    Wheeler issued a statement Wednesday detailing how he intends to rewrite these rules. In his statement, he says the court upholding the Commission’s authority to regulate broadband access will be used to accomplish three goals – enforce and enhance the transparency rule, fulfill the “no blocking” goal, and fulfill the goals of the non-discrimination rule. While the court had no problem with the transparency rule, it did smack down the latter two. Wheeler says he will work within the confines of the court’s ruling to ensure that ISPs can not block or discriminate against Internet traffic.

    By looking to the FCC’s current authority, Wheeler could be trying to avoid a potential fight over an easier solution to the net neutrality problem – reclassifying ISPs as common carriers. The FCC only classifies phone service operators as such and has immense authority over them. The court ruled that anything other than common carriers are subject to far less authority and regulation. While the FCC certainly has the authority to reclassify ISPs as common carriers, it may want to avoid the fight that would inevitably ensue.

    As you might expect, not everybody on the FCC is terribly fond of the idea. Commissioner Ajit Pai issued a statement as well saying that net neutrality rules are burdensome regulations that get in the way of process:

    When Congress told us to encourage broadband deployment by removing barriers to infrastructure investment, it also established the policy of the United States to “preserve the vibrant and competitive free market that presently exists for the Internet . . . unfettered by Federal or State regulation.” Whatever the Commission does as it moves forward, it must take that statutory command to heart.

    The Internet was free and open before the FCC adopted net neutrality rules. It remains
    free and open today. Net neutrality has always been a solution in search of a problem.

    What Pai doesn’t take into account is that net neutrality wasn’t much of a concern 10 years ago. As more and more services moved online, however, it became apparent that net neutrality would be a necessity moving forward. With nothing standing between an ISP speeding up its own services while throttling competitors, they aren’t going to support a free and open Web for long.

    While such scenarios have yet to materialize, we got a preview of what it may be like earlier this month when it was revealed that Netflix’ performance on Verizon was degrading. Netflix claims that Verizon was not intentionally throttling its speeds, but the poor performance Verizon users have been experiencing would become the norm if net neutrality rules are not reinstated.

    Not to mention, the proposed merger of Comcast and Time Warner Cable brings net neutrality concerns to the forefront. While Comcast has agreed to adhere to the FCC’s net neutrality rules for the next few years, nothing will stop them from throttling competitors like Netflix in favor of its own services once its agreement with the Commission expires.

    The examples thus far have all focused on Netflix as its generally seen as the standard in video delivery innovation. Not only did it pioneer the idea of streaming television over the Internet, but it’s also producing quality original content like House of Cards and Orange is the New Black.

    It’s hard to remember a time when Netflix was just a small startup, but there are hundreds, if not thousands, of potential startups and small businesses out there that could have the same kind of impact that Netflix has had. Without net neutrality rules to protect them, these small businesses would be at the mercy of the major Internet providers that would throttle their services unless they were willing to pay for the fast lane. Throttling innovation will lead to a stagnant market that can’t compete in an ever growing global economy.

    Net neutrality is more than just a philosophy. It’s a means to protect the consumer and small business from an industry that sometimes seems a little too monopolistic for its own good. While some will call for the FCC to reclassify broadband providers thus subjecting them to more regulation, the FCC seems to be going for a balance that satisfies the need for net neutrality without introducing more regulation than needed.

    Do you have faith in the FCC to protect consumers and small businesses with its new net neutrality rules? Or will be it one-sided in favor of Internet providers? Let us know in the comments.

    Image via Cable Center/YouTube

  • Verizon Phone Plan Gets Upgrade With “More Everything”

    Feeling pressure from rival carriers T-Mobile and AT&T, Verizon announced a new “More Everything” plan that gives its customers, well, more of “everything” for their money. The new plan primarily benefits families and users who don’t consume as much data. Families who choose a plan containing over 10 gigabytes a month are rewarded with $20 off their monthly bill. Users only consuming 250mb a month see a smaller $15 charge. Extra bonuses also include unlimited international messaging and 25 GB of cloud storage.

    The plan also favors those already enrolled in Verizon’s Edge program, a plan which is sort of like a “shortcut” to a newer phone. Instead of waiting for an upgrade, customers in the Verizon Edge program pay the full retail price of their new phone divided into their monthly payments. Now with the “More Everything” plan, Edge customers can see an extra $10 off their monthly plan (which, when you think of the $120/year saved off your new phone, it’s a great discount!)

    Verizon’s “More Everything” is their way to staying alive in the industry-wide fight between carriers, which started last year when T-Mobile decided to eliminate the 2-year contract. Most recently, T-Mobile also offered to pay Early Termination Fees if you decided to switch to their carrier. AT&T made their own move by drastically reducing their family plans to remain competitive.

    Now, Verizon is hoping to hang on to customers and prevent switching with “More.” “MORE Everything changes the game by adding even more of what customers want from their wireless provider in a single, simple monthly plan,” said Ken Dixon, chief marketing officer at Verizon Wireless. “Verizon Wireless led the way with the introduction of shared data plans, and MORE Everything is the next leap forward with more storage, more messaging and more choice, all on a 4G LTE network that is unmatched in coverage and capacity.”

    Image via Wikimedia Commons

  • Verizon Workers Out of Jobs After Closings

    “Move or find a new job” is what Verizon Wireless is telling about 3,000 of its employees.

    Verizon, the largest wireless carrier in the US, announced Wednesday it is closing five of its company’s customer call centers, but plans to find jobs for all those who are affected. If employees don’t want to move or can’t find other jobs within the company, they will receive severance packages. The closings are supposed to be completed by May.

    The timing of these changes, which include ending some jobs and changing others, coincide with other popular wireless carriers, such as AT&T Inc., Sprint Corp, and T-Mobile US Inc., attempting to lure customers away from Verizon by offering cheap plans. Verizon denies that their new plans have anything to do with what their competitors are doing.

    Verizon also denies that the closures are a way to save money, as the company plans on filling all of the vacant positions. However, closing five centers could still cut down some costs for the company.

    About four percent of the company’s 73,000 employees will be affected by the closings. The offices that are closing are located in Alpharetta, Ga.; Cranberry Woods and Warnerville, Pa.; Hanover, Md.; Irvine, Calif.; and Meriden and Wallingford, Conn.

    An additional 2,200 employees are being relocated to different office buildings that are within a short drive of their current locations.

    Image via Verizon, Twitter

  • Verizon Raises Data Caps, Lowers Prices a Bit

    For months now T-Mobile has been bringing significant changes to the U.S. mobile market. The company was the first to introduce the now-standard device subscription pricing model with its “JUMP” program and also has made its unlimited international data offering a point of pride. Most recently T-Mobile announced that it will pay customers’ early termination fees when switching to T-Mobile from one of the other big mobile providers.

    T-Mobile’s target throughout all of this has been AT&T, as T-Mobile CEO John Legere has made clear with his unceasing snipes at the company. This has largely allowed Verizon to stand above the fray, keeping its premium prices and large subscriber base solid. But no more.

    Verizon today announced that it will be entering into the new mobile price war. The provider is launching “MORE Everything” mobile plans that offer more data at lower prices.

    The biggest change coming with the new plan is that the data caps will be raised for its 500MB, 1GB, and 2GB price tiers. The new limits will be 1GB, 2GB, and 3GB. The MORE Everything plans also come with 25GB of cloud storage for each line on the plan.

    Verizon will still be offering its “Edge” program for faster device upgrades. Customers who use Edge on top of a MORE Everything plan will get $10 off their monthly data costs for plans offering up to 8GB and $20 off monthly data costs for plans over 10GB.

    This new pricing announcement coming from a market leader shows just what real competition can bring to a market. The failed merger between AT&T and T-Mobile probably would have prevented mobile competition on this scale in the U.S., as would the proposed Sprint and T-Mobile merger. This is in contrast to, say, the cable industry, which is set to see even more consolidation in a market where regional monopolies are already the norm.

  • Family Wireless Plans Emerge in Competitive Market

    Family Wireless Plans Emerge in Competitive Market

    Verizon’s hold as the number one wireless carrier in the United States may be slipping. AT&T is making a solid run to go from the second biggest wireless carrier to the first. And they’re doing it by going after your family.

    AT&T is currently marketing a new plan to cut $40 off the bill of a family that carries at least four smartphones. The plan which already includes unlimited texts and calls was previously $200. It is currently being offered at $160. And, you don’t even have to sign a contract.

    David Christopher, chief marketing officer for AT&T knows the company needs to stay competitive in the always evolving world of mobile phones. “We feel we have the best network and the best value in the marketplace.”

    In 2012 T-Mobile, who has become one of AT&T’s biggest competitors, did away with long term contracts and shortened a customer’s wait time between phone upgrades. The changes paid off big time, as T-Mobile has seen an uptick of over 2 million customers in less than one year.

    The competitive marketplace is obviously great for the consumer, even if all the alluring options can make a person’s head spin. Sprint paid the $4 million spot fee and took advantage of the monster Super Bowl audience on Sunday. They advertised something called “Framily Plan” in a funny ad that showed possible consumers the different people that you could put on a Sprint “family” plan.

    So which plan is the right one for you? Several factors should be considered when choosing a wireless carrier. A few questions to ask yourself: how many people will be on my plan, how much will an upgrade cost, how long between upgrades, what are the total monthly costs, will my data and texts be unlimited, who can I put on my plan, can I cancel my plan at anytime?

    Image via Facebook

  • Verizon to Acquire Intel’s IP TV Initiative

    In 2012 it was revealed that Intel was looking to enter the TV industry in force, bringing streaming IPTV and a change to the way cable subscriptions work. Like Apple’s rumored TV plans, however, Intel’s TV ambitions were thwarted by cable companies currently very comfortable with their regional monopolies.

    Today it appears that Intel has given up on IPTV for good. Verizon today announced that it will acquire Intel Media, Intel’s clould TV products and services division. The terms of the deal, including Verizon’s offer, have not been revealed but the transaction is expected to close sometime “early in the first quarter of 2014.”

    Through the purchase Verizon will receive all of the rights to Intel’s OnCue IPTV platform. The former Intel Media will continue to be operated out of its current Santa Clara location and will be run by Intel’s current management. Verizon has stated that it will make offers to the estimated 350 Intel employees currently working at Intel Media.

    As part of its statement on the purchase, Verizon stated that Intel Media will be used to accelerate its plans for IPTV video over its FiOS network. The OnCue platform will be combined with Verizon’s new network video-delivery services to expand the provider’s video offerings, perhaps even through its mobile network.

    “The OnCue platform and team will help Verizon bring next-generation video services to audiences who increasingly expect to view content when, where and how they want it,” said Lowell McAdam, CEO and chairman of Verizon. “Verizon already has extensive video content relationships, fixed and wireless delivery networks, and customer relationships in both the home and on mobile. This transaction provides us with the capabilities to build a powerful, capitally efficient engine for future growth and innovation. We will have the opportunity to enhance, expand, accelerate and integrate our delivery of video products and services to better serve audiences on a wide array of devices.”

  • Verizon Earnings & Subscriber Numbers Up in 2013

    Verizon today released its fourth quarter 2013 and full-year 2013 financial results, showing that the company has made a significant turnaround from its disappointing fourth quarter 2012 numbers.

    Verizon’s fourth quarter earnings per share hit $1.76 in 2013, a significant increase over its $1.48 earnings per share loss during the fourth quarter of 2012. The company blames part of its 2012 fourth quarter earnings report on the impact that Superstorm Sandy had on its infrastructure in the Northeast.

    Total Verizon earnings for the fourth quarter 2013 hit $5.07 billion on revenue of $31.1 billion, up 3.4% over fourth quarter 2012 revenue.

    Verizon’s total-year 2013 earnings hit $32 billion, an over 21% increase over the company’s 2012 earnings. Verizon was also able to increase its cash flow to $38.8 billion during 2013 – more than double its cash flow during 2012.

    Verizon’s wireless division continued to lead its earnings, generating $21.1 billion of the company’s revenues during the fourth quarter 2013. While the the mobile market in the U.S. is beginning to saturate and run out of new subscribers for mobile operators to attract, Verizon managed to add 1.6 million subscribers during the fourth quarter. This makes up a sizable portion of the 4.1 million subscribers that Verizon added during the year 2013. The mobile provider now boasts nearly 97 million subscribers.

    Verizon’s FiOS internet service also continued its growth throughout 2013, adding 126,000 new internet connections. The service now has over 6.1 million internet customers, a nearly 12% increase over numbers at the year-end 2012.

    “Verizon delivered a total return of 18.6 percent to our shareholders in 2013, while attracting more customers than our competitors and improving our financial performance,” said Lowell McAdam, CEO and chairman of Verizon. “This included more than 20 percent year-over-year increases in operating cash flow and EPS. In 2014, we look forward to acquiring sole ownership of Verizon Wireless, the best asset in the global wireless industry, and leveraging all our assets to deliver innovative products to customers and more value to shareholders.”

  • Appeals Court Strikes Down FCC’s Net Neutrality Rules

    Appeals Court Strikes Down FCC’s Net Neutrality Rules

    For the past few years, Verizon has been in a bitter battle with the FCC over the Commission’s enforcement of net neutrality rules. The case made its way all the way to the Washington D.C. Court of Appeals where both sides argued for whether or not the Commission could enforce the rules.

    The Washington D.C. Circuit Court of Appeals issued its anticipated ruling today in Verizon v. FCC with Verizon being named the victor in a 2-1 decision. The decision guts the FCC’s Open Internet Order – a set of rules that intended to prevent ISPs from discriminating against certain types of traffic. For example, Verizon wouldn’t be able to give preference to Redbox over Netflix under the FCC’s rules. With those rules gutted, Verizon and other ISPs now have free reign to either slow down transfer speeds for competitors or make those competitors pay for speedy access to customers.

    Wow, that sounds pretty horrible. Why did the appeals court rule in favor of something that seems so anti-consumer? Well, it’s kind of the FCC’s fault. While the ruling holds that the FCC has general authority over how ISPs treat Internet traffic, the courts say that the Commission didn’t provide a compelling enough reason to justify its authority over specific instances.

    Here’s the relevant bit of the decision:

    As we explain in this opinion, the Commission has established that section 706 of the Telecommunications Act of 1996 vests it with affirmative authority to enact measures encouraging the deployment of broadband infrastructure. The Commission, we further hold, has reasonably interpreted section 706 to empower it to promulgate rules governing broadband providers’ treatment of Internet traffic, and its justification for the specific rules at issue here—that they will preserve and facilitate the “virtuous circle” of innovation that has driven the explosive growth of the Internet—is reasonable and supported by substantial evidence. That said, even though the Commission has general authority to regulate in this arena, it may not impose requirements that contravene express statutory mandates. Given that the Commission has chosen to classify broadband providers in a manner that exempts them from treatment as common carriers, the Communications Act expressly prohibits the Commission from nonetheless regulating them as such. Because the Commission has failed to establish that the anti-discrimination and anti-blocking rules do not impose per se common carrier obligations, we vacate those portions of the Open Internet Order.

    So, where does this leave us – the Internet consumers that will be most affected by this? Well, there are two ways this can now go. Either the FCC can appeal to the Supreme Court, or they can just let this fight go. For the former, the Supreme Court would likely either refuse to hear it or rule in favor of Verizon again considering the current makeup of the court.

    As for the latter, it’s not like the rules were stopping ISPs from introducing programs that violates the net neutrality philosophy. During CES last week, AT&T announced Sponsored Data – a new plan that allows content providers to pay for their customers’ data. In essence, AT&T is letting the big guys pay to win while small businesses will be forced to compete at a major disadvantage.

    With the FCC’s net neutrality rules being gutted like this, it’s really only a matter of time before all of the major ISPs introduce something similar to sponsored data. For you to reliably enjoy Netflix on Time Warner Cable, Netflix will now have to pay Time Warner for faster access to your home. This will in turn force Netflix to raise its prices. It would also negatively impact small businesses and startups that rely on streaming to deliver content as they wouldn’t be able to afford the fees. This would negatively impact innovation and competition as only the established players could afford the gatekeeper fees.

    In the end, all of the above is merely speculation until we know how the FCC is going to progress from here. The net neutrality rules were put into place by former FCC Chairman Julius Genachowski. His successor, Tom Wheeler, was a former lobbyist for the telecom industry so the chances of him appealing the decision are slim to none. Still, miracles can happen as Wheeler supported and helped set up an agreement that lets Americans unlock their phones after their contract has expired.

    UPDATE: FCC Chairman Tom Wheeler has issued the following statement in regards to today’s ruling:

    “The D.C. Circuit has correctly held that ‘Section 706 . . . vests [the Commission] with affirmative authority to enact measures encouraging the deployment of broadband infrastructure’ and therefore may ‘promulgate rules governing broadband providers’ treatment of Internet traffic.’ I am committed to maintaining our networks as engines for economic growth, test beds for innovative services and products, and channels for all forms of speech protected by the First Amendment. We will consider all available options, including those for appeal, to ensure that these networks on which the Internet depends continue to provide a free and open platform for innovation and expression, and operate in the interest of all Americans.”

    [h/t: Ars Technica]
    Image via Wikimedia Commons

  • T-Mobile to Buy Verizon Spectrum For $2.3 Billion

    T-Mobile to Buy Verizon Spectrum For $2.3 Billion

    Late last week, T-Mobile CEO John Legere criticized AT&T’s announcement that it would pay up to $450 to T-Mobile subscribers who switch to AT&T. Calling the move “desperate,” Legere said the move was a clear sign that T-Mobile had made AT&T “uncomfortable.” He then teased that T-Mobile would have more industry-changing news coming out of this week’s Consumer Electronics Show (CES).

    T-Mobile today did release an announcement, though it’s not some new exciting service or pricing initiative. The company will be paying a little over $2.36 billion for 700MHz A-Block spectrum from Verizon. In addition to the cash, T-Mobile will hand over nearly $1 billion worth of its AWS and PCS spectrum to Verizon.

    According to T-Mobile, the deal will give the company a stake in low-band spectrum in nine of the top ten U.S. cellular markets. Around 150 million people are covered by the spectrum purchased from Verizon.

    “This is a great opportunity to secure low-band spectrum in many of the top markets in America,” said Legere. “These transactions represent our biggest move yet in a series of initiatives that are rapidly expanding our already lightning-fast network and improving its performance across the country. We will continue to find ways to advance our customers’ network experience just as our bold ‘Un-carrier’ moves have shaken up the wireless industry to benefit consumers.”

    Verizon closed a similar spectrum deal with AT&T back in September. Under the terms of that deal, AT&T paid $1.9 billion for 39 700MHz B-Block spectrum lecences covering 42 million Americans in 18 states.

  • Samsung Galaxy S4s are Free on Black Friday (Whoa)

    Samsung Galaxy S4s are Free on Black Friday (Whoa)

    The day after Thanksgiving could be your day to finally upgrade your phone: The most recent edition of the highly popular Samsung smartphone, the Galaxy S4 will be free on Black Friday.

    Of course, this is with a two-year contract only. This is still a great deal, especially for those who have been looking at their Galaxy S3s with a little less love since the S4 has been released.

    The Black Friday Best Buy and Walmart ads both explain their unique ways of providing this offer. At Walmart, you pay $99, but they in turn give you a $100 gift card. Yes, it is only a dollar back, but that is still an extra dollar that you didn’t have before! Plus, receiving a gift card could also scratch an item off of your Christmas list. All in all, kudos to Walmart’s ingenious marketing plan to keep the money in-house with a little extra incentive.

    Best Buy keeps it a bit simpler, but with their own advantages: If you get your Galaxy S4 from Best Buy, you have the choice of using Verizon, AT&T and Sprint as your carrier. Best Buy is also the only place where you can get the attractive Blue Arctic color.

    It’s pretty hard to say that this isn’t a great deal. While this probably means that the Galaxy S5 is coming soon, which it definitely is according to some, the Samsung Galaxy S4 is a great phone that normally costs over $200. If you or someone you know needs an upgrade, Black Friday might be the best time to do it.

    Image: Samsung

  • New Nexus 7 Won’t Work On Verizon Until It Gets KitKat

    This year’s Nexus 7 supported 4G LTE networks right out of the gate on AT&T, T-Mobile and any other GSM network. As such, it should have been as easy as buying the unlocked tablet and activating it for Verizon subscribers. What those subscribers found, however, was that Verizon was giving them the run around as it refused to activate the tablets on its network. Now the carrier finally has a reason.

    Speaking to Android Police, a Verizon spokesperson said that its refusal to activate the Nexus 7 on its network all came down to a “systems issue” discovered in Jelly Bean. Instead of working together to fix the problem, Verizon claims Google told it to hold off on certifying the device until it got KitKat.

    Here’s the full statement:

    During the certification process for the Nexus 7, Google, Asus and Verizon uncovered a systems issue that required Google and Asus to undertake additional work with the Jelly Bean OS running on the device. Since Google was about to launch its new Kit Kat OS, rather than undertake this work, Google and Asus asked Verizon to suspend its certification process until Google’s new OS was available on the Nexus 7.

    So, what does this mean for the Verizon subscriber with a brand new LTE-capable Nexus 7? You’re probably going to have to wait for a few more weeks as Google’s rollout of new Android versions to previous Nexus devices usually takes a long time. My Nexus 7 from 2012 didn’t get Android 4.3 until three weeks after it debuted in July. While my experience may vary from yours, you may be in for a long wait until you can activate your new tablet on Verizon. As for AT&T and T-Mobile subscribers, you can just buy a Nexus 7 with a carrier-specific SIM already installed.

    [Image: Google Play]

  • Galaxy S 4 Mini Comes To The U.S. In November

    Galaxy S 4 Mini Comes To The U.S. In November

    Just like with the Galaxy S III before it, the Galaxy S 4 was miniaturized into a more affordable version of its flagship brother. The device – known as the Galaxy S 4 Mini – was unveiled in May and released in Europe this past July. Now the device is finally coming to America next month.

    Samsung announced today that the Galaxy S 4 Mini will hit the U.S. at some point in November. The company didn’t offer a specific date which is a sign that it’s leaving those details up to the carriers that will be offering the device.

    “Samsung continues to provide a wide range of products to fit consumers’ needs,” said Gregory Lee, president of Samsung Mobile. “The Galaxy S 4 mini continues that commitment by bringing the paramount features of our flagship Galaxy S 4 smartphone to a smaller, more compact form factor.”

    So, what will you get with the Galaxy S 4 Mini? The miniaturized S 4 sports a 4.3-inch qHD Super AMOLED display powered by a 1.7GHz dual-core CPU, 1.5GB of RAM, a 1900 mAh battery and 16GB of onboard storage. The S 4 Mini runs on Android 4.2.2 and it supports up to 64GB of expandable memory. Samsung also notes that the S 4 Mini will receive an update shortly after launch that will make it compatible with the company’s Galaxy Gear smart watch.

    Samsung says that AT&T, Sprint, Verizon and U.S. Cellular will all carry the S 4 Mini. It doesn’t offer a price, but it will be substantially cheaper than the Galaxy S 4. If I was a betting man, I’d wager that the S 4 Mini will cost $99 with a new two-year contract.

    [Image: SAMSUNGMOBILEUK/YouTube]

  • Verizon Posts Strong Third Quarter Results

    T-Mobile decided to rewrite the wireless carrier business model earlier this year with its Un-Carrier plan. At the time, Verizon customers asked the nation’s largest carrier to follow suit. It didn’t, and its latest financial results show that it doesn’t have to either.

    Verizon announced today that it had a strong third quarter this year with total operating revenue coming in at $30.3 billion, a 4.4 percent increase compared to Q3 2012. It also posted an operating income of $7.1 billion, a 30 percent increase over Q3 2012. It also added 1.1 million subscribers this past quarter, with 927,000 of those subscribers being postpaid. Overall, Verizon now has 101.2 million subscribers, a 5 percent increase year-over-year.

    “These strong third-quarter results reflect Verizon’s long-term investment in reliable, high-quality networks to deliver value to customers,” said Lowell McAdam, Verizon chairman and CEO.” Our unwavering focus on wireless, FiOS and strategic enterprise services has produced consistent performance, and we’ve delivered double-digit earnings growth in six of the past seven quarters. Verizon’s strategic networks form a powerful distribution platform for future growth and innovation.”

    Verizon notes that smartphones accounted for 67 percent of all devices on its network last quarter. This is up from 64 percent in Q3 2012. Furthermore, it has managed to migrate 42 percent of its postpaid customers to its Share Everything plan.

    As for Verizon’s 4G LTE rollout, the company says that 4G LTE services are now available to 99 percent of its 3G footprint. In other words, its 4G LTE coverage now covers 97 percent of the U.S. population and is available in more than 500 markets.

    Aside from its successful wireless service, Verizon also posted growth in its wireless FiOS service. It gained 173,000 FiOS Net and 135,000 FiOS Video subscribers in the last quarter leading to a total of 5.9 million FiOS Net subscribers and 5.2 million FiOS Video subscribers. It also added 56,000 regular broadband customers in the last quarter as well. This led to revenues of $3.7 billion, or a 4.3 percent year-over-year increase.

    On the news, Verizon’s share price has risen by a little over 3 percent. It’s now trading at $48.78 per share.

    [Image: Verizon Wireless/YouTube]

  • An Internet Without Net Neutrality Looks Pretty Damn Scary

    An Internet Without Net Neutrality Looks Pretty Damn Scary

    Even though the network that gives life to the Internet is considered an interstate communications service, and therefore is under the regulatory watch of the FCC, companies like Verizon, AT&T, and Time Warner are trying their hardest to have these powers stripped in what some are calling a plan to “ruin the Internet.” While that may come across as misguided hyperbole to the ISPs and the kind of consumer who would openly praise AT&T’s 9/11 tweet as having nothing to do with advertising (yes, really) alike, after watching the lead video, if the ISPs gets their way, hyperbole could quickly become a hard, cold truth.

    Verizon is currently at the focal point of the net neutrality argument, and with good reason. A couple of days ago, Verizon’s lawsuit against the FCC’s net neutrality rules began its hearing phase in front of a three-judge panel of the Washington D.C. Circuit Court of Appeals. One of Verizon’s main arguments revolves around the freedom of speech; however, this concern isn’t for their subscribers accessing their content on the best Internet network possible. Instead, Verizon’s position is net neutrality impedes on the company’s right to free speech, which can apparently manifest itself in the form of controlling the flow of information based on who pays for the best delivery pipe.

    Yes, really.

    Showing favoritism to one type of content over another is a free speech issue, and net neutrality infringes on that. With that in mind, who says patent attorneys are the only legal trolls out there?

    The video–which I urge you to watch–has a 30-minute run time. If, at any time, you’re confused about the message, or don’t quite get the concept of sarcasm and parody, the following quote from the supporting site’s Take Action page is quite revealing:

    If you agree that your Internet Service Provider should not be making decisions for you about the Internet you get access to, the most important thing you can do right now is share this film with everyone you know, and help raise mass awareness of the importance of the open Internet and broadband access.

    Vigilance on this issue, if you truly care about a neutral net, is constantly required.

  • Verizon, AT&T Complete $1.9 Billion Spectrum Transaction

    Verizon, AT&T Complete $1.9 Billion Spectrum Transaction

    AT&T and Verizon this week announced that a $1.9 billion spectrum deal between the companies has been finalized. AT&T paid the billions to Verizon for 39 lower 700MHz B Block spectrum licenses. The deal between the largest mobile providers in the U.S. was announced back in January, and just this month was approved by the U.S. Federal Communications Commission (FCC).

    According to AT&T, the sold spectrum covers 42 million Americans in 18 states (California, Colorado, Florida, Idaho, Illinois, Louisiana, Montana, New Mexico, New York, Ohio, Oklahoma, South Dakota, Tennessee, Texas, Utah, Virginia, Washington and Wyoming). AT&T intends to use the spectrum to expand its 4G LTE network throughout the territories the spectrum covers.

    As part of the deal, AT&T also transferred several AWS-1 licenses to Verizon in key markets such as Los Angeles, California; Fresno, California; and Portland, Oregon. Verizon states that it will use its new AWS licenses to expand the capacity of its 4G LTE network in those markets

    In addition to the large AT&T sale, Verizon has also sold several of its 700MHz spectrum licenses to six small regional mobile providers and one minority-owned firm. Verizon is selling off this spectrum as part of a deal with U.S. regulators that would allow the company to acquire spectrum from U.S. cable companies, including Time Warner and Comcast.