Leaked fcc documents that kills at&t/t-mobile merger. - General Topics

http://www.dslreports.com/shownews/Leaked-ATT-Letter-Demolishes-Case-For-TMobile-Merger-115652
Yesterday a partially-redacted document briefly appeared on the FCC website --accidentally posted by a law firm working for AT&T on the $39 billion T-Mobile deal (somewhere there's a paralegal looking for work today). While AT&T engaged in damage control telling reporters that the document contained no new information -- our review of the doc shows that's simply not true. Data in the letter undermines AT&T's primary justification for the massive deal, while highlighting how AT&T is willing to pay a huge premium simply to reduce competition and keep T-Mobile out of Sprint's hands.
We've previously discussed how AT&T's claims of job gains and network investment gained by the deal aren't true, with overall network investment actually being reduced with the elimination of T-Mobile. While AT&T and the CWA are busy telling regulators the deal will increase network investment by $8 billion, out of the other side of their mouth AT&T has been telling investors the deal will reduce investment by $10 billion over 6 years. Based on historical averages T-Mobile would have invested $18 billion during that time frame, which means an overall reduction in investment.
Yet to get the deal approved, AT&T's key talking point to regulators and the press has been the claim that they need T-Mobile to increase LTE network coverage from 80% to 97% of the population. Except it has grown increasingly clear that AT&T doesn't need T-Mobile to accomplish much of anything, and likely would have arrived at 97% simply to keep pace with Verizon. AT&T, who has fewer customers and more spectrum than Verizon (or any other company for that matter), has all the resources and spectrum they need for uniform LTE coverage without this deal.
For the first time the letter pegs the cost of bringing AT&T's LTE coverage from 80% to 97% at $3.8 billion -- quite a cost difference from the $39 billion price tag on the T-Mobile deal. The push for 97% coverage apparently came from AT&T marketing, who was well aware that leaving LTE investment at 80% would leave them at a competitive disadvantage to Verizon. Marketing likely didn't want a repeat of the Luke Wilson map fiasco of a few years back, when Verizon made AT&T look foolish for poor 3G coverage.
The letter also notes that AT&T's supposed decision to "not" build out LTE to 97% was cemented during the first week of January, yet public documents (pdf) indicate that at the same time AT&T was already considering buying T-Mobile, having proposed the deal to Deutsche Telekom on January 15. In the letter, AT&T tries to make it seem like the decision to hold off on that 17% LTE expansion was based on costs. Yet the fact the company was willing to shell out $39 billion one week later, combined with AT&T's track record with these kinds of tactics, suggests AT&T executives knew that 80-97% expansion promise would be a useful carrot on a stick for politicians.
While the $39 billion price certainly delivers AT&T customers, equipment, employees, and spectrum, most of T-Mobile's network replicates AT&T's existing resources in major markets, and T-Mobile's network is significantly less robust in rural markets where AT&T would want to expand. While the deal provides AT&T with a shortcut to sluggish tower builds in a few select markets, by and large AT&T will be faced with terminating many redundant positions and decommissioning a lot of duplicative equipment. They'll also have to close a large number of retail operations and independent retailers.
Again, the reality appears to be that AT&T is giving Deutsche Telekom $39 billion primarily to reduce market competition. That price tag eliminates T-Mobile entirely -- and makes Sprint (and by proxy new LTE partner LightSquared and current partner Clearwire) more susceptible to failure in the face of 80% AT&T/Verizon market domination. How much do you think wireless broadband market dominance is worth to AT&T over the next decade? After all, AT&T will be first to tell you there's a wireless data "tsunami" coming, with AT&T and Verizon on the shore eagerly billing users up to $10 per gigabyte.
Regardless of the motivation behind rejecting 97% LTE deployment, the letter proves AT&T's claim they need T-Mobile to improve LTE coverage from 80-97% simply isn't true. That's a huge problem for AT&T, since nearly every politician and non-profit that has voiced support for the merger did so based largely on this buildout promise. It's also a problem when it comes to the DOJ review, since proof that AT&T could complete their LTE build for far less than the cost of this deal means the deal doesn't meet the DOJ's standard for merger-specific benefits.
Taken from CheezyNutz in the 3d forums.
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Don't buy this for a second, either way, Sprint won't ever be in Financial position to purchase T-Mobile
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Thanks
Nice update to see, I definitely am not a fan and hope this merger/acquisition fails.

if they do, it will end up bad
look what verizon did with alltell a few years ago.
altell exists now as a small farm-towm carrier

Related

Don't Knock Sprint & CDMA

There's been a whole lot of knocking the Touch Pro 2 on the CDMA network and Sprint (one person referred to shoving a cactus up his a**), so I just want to write and defend it. True, CDMA is kind of backwards and not internationally common, but the phone does include GSM support for foreign travel. I just bought a TP2 on Sprint, and my experience was awesome. I purchased online, and I declined to bring my number with me. Upon receiving my phone I changed my mind, so customer support told me to take my new phone to a Sprint store to get help. Service was quick, friendly, and knowledgable. They even told me it would be at least 3 hourse before I got service with my old number, if not a day, but I had it by the time I left the store. Sure, the phone is $450 upfront, but there is a $100 rebate, plus more if you list a friend on Sprint as a referrer. Plus, I sold my old Tilt for $95, and if you use 'save50' as a coupon code, you get $25 off service for the first two months. Really, not too bad at all. I actually get coverage on Sprint inside buildings where AT&T always dropped. Finally, Sprint's Simply Everything plans are better than any other network's data plans, and on them you can now call any mobile phone in America for free. I know some people trash Sprint like there's no tomorrow, but my experience thus far has been great. I grew to hate AT&T by the time I left, and I don't think I could ever go back to them. Their data prices are ridiculous, store staff are snobs, and although I would never buy an iPhone, their whole handling of that situation has been ridiculous. To sum this ramble up, don't be afraid to make the plunge and jump on Sprint. Just my two bits.
PS This was all written on my TP2; this phone rocks! If you've been debating, stop, just buy it.
I will have to agree with trogdor1138
I was a AT&T customer for 4 years, and hated the last year and a half of service! You might ask why only the last year and the half. It all stated when I leased a new office building and got 1 to 0 bars of Edge service, my brother who was on Verizon had 5 bars of 3G. Which made for a really crap experience during the whole office phone transition. I don't even want to get into AT&T's customer service because its no existent. I got my Touch Pro2 from Sprint on the 8th and all I have to say is WOW! At my office I get 5 bars of service and I have yet to find a place in my everyday travels where Sprint doesn't have great coverage. And the best part is my cell phone bill when from 129.99 a month on at&t to 99 bucks. So yeah I paid a bit more for my phone but those poor guys on at&t will pay out their nose for the service!
I need to jump on this band wagon. My experience with AT&T and Sprint is exactly like the first two posts. I could not use my AT&T phone in my house or office or more than a mile away from the interstates (out side of metro areas). Sprint covers the whole state, (WI) has better customer service and is about 20% cheaper than what I was paying AT&T. And to top it all off, my TP2 is rock solid. I've never had a phone that was this easy to use and at the same time this versatile.
I am glad to see some support for Sprint! I have had Sprint for 8 years and my service has only got better over time. I always have signal and when I don't I roam on Verizon. Sprint has a credibility problem that was self imposed-no getting around it. But Sprint has been making the right moves for a couple years now and I hope it continues.
This reply was also typed on my Touch Pro 2.
I just switch from t-mobile to sprint. I was with t-mobile for 5 years. Thought about getting tp2 with them but there always behind everybody else and i did like all the changes they made to the tp2. What were they thinking. Anyway besides that they didn't have any of the extras internet services like internet TV,music and radio like all the other carriers do. With sprint i get all that in it's only costing me about $5 dollars more a month. So i ported my number and it only took 1 day to get the phone and have it activated with my ported number. No regrets at all.
This is soo nice after posting charts of of data throughputs of carriers proving sprints better- posting data charges from carriers where sprint wins every time - and Now 4G (yes WiMAX in my area as of sept1) it does me happy to see the light in others - sad that no matter what you say no matter what proof you provide others continue to defend spending more for getting less
AT&T was and still is horrible in my area. I canceled within the trial period. Sprint has much better service, and in my opinion better customer service.
I was with T Mobile for 8 years
I switched to Sprint from T Mobile at the begining of this year. I just couldn't wait for 3g any longer here in Salt Lake City. I am very happy with Sprint. I like both Sprint and T Mobile but I have to say that I don't feel I miss T Mobile at all.
Before I got Sprint I asked a few people about it and they told me that some times their bills were bigger than others, I am thinking this might be because I have found my phone goes into roaming but it doesn't affect me since I'm on the Everything Plan.
I think Sprint is a great company and I'm happy with them.
Battery life vs data transfer
For the US:
If you don't travel heavily, don't need broadband and live in an area with good GSM coverage then GSM is a no brainer. The battery life is better and you don't have to fiddle with phonebook transfer programs and the like.
If you need coverage and broadband then CDMA is the way to go.
My gripe with CDMA is that it takes forever to get good phones. You wait and wait for someone to make a CDMA phone that has year old GSM features.
If CDMA could fix the talk time and get manufacturers to make phones for it I would say that CDMA wins, period. As it stands though, if you live outside of the US, or live in the US and don't travel or just use your phone for talking, SMS and the occasional MMS then GSM is for you.
Basically I just want a world standard. If that means CDMA has to switch over and I lose some bandwidth, so be it. It look like Europe is flirting with (W)CDMA, so maybe GSM will be phased out. I guess it's market share vs technology at this point.
I agree, I love my TP2 on the Sprint Network. This phone is too hot. Finally a real size screen, best keyboard I have ever used, just a sturdy build for such a device that moves many ways. Money well spent.
I agree! I was a long-time AT&T customer and was quite unsatisfied with the service I was getting. I made the jump to Sprint last week with the TP2. Ordered online Thursday night, and the phone was on my desk early Monday morning. The phone and network has exceeded my expectations--great service everywhere (EVDO service is awesome in WI)--not a single dropped call. As for the phone, battery life is pushing 2 days, which is including the constant data connection for email and occasional music streaming.
Saving $20/month from AT&T to Sprint and gaining features? Yes, please!
Another solid vote for Sprint...
Switched from Suncom (T-Mobile now). I've also had Nextel, Alltel, and AT&T.
As far as I am concerned Sprint is a no brainer.
I haven't found any company that can come close to their prices and they have definitely stepped up their hardware. (TP2 FTW!)
My current plan on Verizon and matching services was around 80 bucks more expensive. When asked why they were so much more than Sprint their answer was "We have the best customer service". Well putting opinion aside for the moment my response was "For 80 bucks a month you had best be at the foot of my bed every morning at 6am, waking me up, and handing me a cup of coffee"
They did not respond.
I also have Sprint and love it. Never a dropped call, or any problems here in s. calif. Was with Verizon for years, but coverage was bad at home and work. The two places I used my phone the most. Tried AT&T for one day. Just terrible. Been with Sprint for a year now...its all good.
trogdor1138 said:
There's been a whole lot of knocking the Touch Pro 2 on the CDMA network and Sprint (one person referred to shoving a cactus up his a**), so I just want to write and defend it. True, CDMA is kind of backwards and not internationally common, but the phone does include GSM support for foreign travel. I just bought a TP2 on Sprint, and my experience was awesome. I purchased online, and I declined to bring my number with me. Upon receiving my phone I changed my mind, so customer support told me to take my new phone to a Sprint store to get help. Service was quick, friendly, and knowledgable. They even told me it would be at least 3 hourse before I got service with my old number, if not a day, but I had it by the time I left the store. Sure, the phone is $450 upfront, but there is a $100 rebate, plus more if you list a friend on Sprint as a referrer. Plus, I sold my old Tilt for $95, and if you use 'save50' as a coupon code, you get $25 off service for the first two months. Really, not too bad at all. I actually get coverage on Sprint inside buildings where AT&T always dropped. Finally, Sprint's Simply Everything plans are better than any other network's data plans, and on them you can now call any mobile phone in America for free. I know some people trash Sprint like there's no tomorrow, but my experience thus far has been great. I grew to hate AT&T by the time I left, and I don't think I could ever go back to them. Their data prices are ridiculous, store staff are snobs, and although I would never buy an iPhone, their whole handling of that situation has been ridiculous. To sum this ramble up, don't be afraid to make the plunge and jump on Sprint. Just my two bits.
PS This was all written on my TP2; this phone rocks! If you've been debating, stop, just buy it.
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Ide have to say my switch from VZW to Sprint was as good. I had a c ouple issues with getting rebates in the begging but Sprint took care of that. Customer service in the stores is normally pretty decent. At VZW.... well... Service was good once you got somone one.
Overall I am very happy I switched. I switched for the Diamond though, not TP2. I did however just purcahse a TP2 and I am loving it!
I too just got my TP2 from Sprint and love it.
Verizon, here in LA, is pretty terrible. I could be at my internship and not get a signal at all - open space with lots of tall buildings around. Additionally, my old apartment in the Valley got almost no reception. Tons of dropped calls.
One complaint though:
My number from Sprint was a recycled phone number. I'm getting four robocalls a day from various political organizations (many of which are in Spanish) and different schools reminding me that my mythical children are about to start school in the next few days.
I've put myself on the Do Not Call registry, both the federal one and the political one, but the calls keep rolling in. Most of the time, if I press 0, it claims my number is erased from their registry, but I doubt that. And if you try to call the number back, they are mysterious ghost numbers that don't connect to anything.
Sprint says there's nothing they can do about it. Luck of the draw, and they've offered to give me a new number (which I'm a little loathe to do, since I've already updated so many people with my new number.) I just wish there were something (maybe even a piece of software for the phone?) that would let me block individual numbers. A lot of the calls I get are repeat offenders.
I have worked for 2 different wireless carriers. The honest answer to the cell phone debate in the US is use what works for you. The ratings you see are typically an average of experiences across the whole US. Most carriers have stronger regions and weaker regions. I have seen poor numbers out west for Verizon Wireless and strong numbers out east and the complete opposite for AT&T.
Network limitations (mainly in-building penetration) may skew your experience from one carrier to the other at the places you use the phone most like your residence and workplace. We are dealing with radio signals that have a very short effective distance, and if you only get one bar of signal, you are going to have a rougher experience with everything than if you had 2 bars or more.
Customer service experiences vary greatly. It depends on who you get when you call. Outsourcing calls makes it a crapshoot. I have heard the horrid Sprint stories, but those were mostly calls that got outsourced and when you reached an actual Sprint rep they were good experiences. At least with wireless carriers they all are trying to provide as good a service as possible due to competition. I wish cable and landline services back in the day had that type of competition. 3 major nationwide carriers minimum in a market and various regional carriers help keeps the competition going, and it is a very competitive market considering the ammount of investment needed to put up a nationwide network in the United States. (Europeans can't quite understand the size of our country and how much empty space there is between major cities). It isn't really quite cost effective to put up a $200,000 tower for 500 customers in a small town, but we expect to have coverage everywhere we go.
Sprint has the good price plans, no denying that. I would put Verizon's network up against Sprint any day though when comparing them nationally. Both EvDO networks are superior to AT&T and T-Mobiles at this point for overall consistancy of service nationwide. But you might live in one of those lucky areas where AT&T or T-Mobile will have their 7Mbps services running well and not overloaded, and they could be the best option. It really comes down to what works best where you use your device and that is going to be different from person to person.
Sprint phone roaming on Verizon?
I am considering a Sprint TP2. I have read differing statements regarding roaming on Verizon. I have several questions:
Basically: does Verizon allow Sprint customers to roam onto their network?
If yes, then: (If... then... an old BASIC programmer, haha)
Can TP2 be "forced" to roam if for example Verizon has a stronger signal a certain area?
When roaming onto Verizon, will you get only the slower speeds and no 3G?
Thanks very much!
I don't really get the knocking of CDMA since it is faster than gsm. If you have a faster network that equals better right? GSM really only has the sim card which i have seen to be a problem actually drop your phone and the sim seems to get creamed fairly often. I have used both CDMA works better and faster. And with programs like My Phone the address book is really a non issue.
my friend been complaing HSPA chew thru battery faster on his phone than my CDMA phone
gliscameria said:
For the US:
If you don't travel heavily, don't need broadband and live in an area with good GSM coverage then GSM is a no brainer. The battery life is better and you don't have to fiddle with phonebook transfer programs and the like.
If you need coverage and broadband then CDMA is the way to go.
My gripe with CDMA is that it takes forever to get good phones. You wait and wait for someone to make a CDMA phone that has year old GSM features.
If CDMA could fix the talk time and get manufacturers to make phones for it I would say that CDMA wins, period. As it stands though, if you live outside of the US, or live in the US and don't travel or just use your phone for talking, SMS and the occasional MMS then GSM is for you.
Basically I just want a world standard. If that means CDMA has to switch over and I lose some bandwidth, so be it. It look like Europe is flirting with (W)CDMA, so maybe GSM will be phased out. I guess it's market share vs technology at this point.
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Default option is only Sprint only and "automatic"
maybe someone can tweak it to roam only
however, if you roam too much, sprint will drop you as a customer

No more ATT for me

ATT is losing 3 lines of service due to their horrible customer service!!! Wasted 2 hours dealing with 8 different people and 4 different departments over ATT failing to provide me with the service promised. I live in a moderate coverage area things were alright up to June of this year, I can hardly place a call, keep a call connected or download a pic via mms. One solution was the 3G micro cell but they wanted me to give them 199$. I told them no I'm paying extra to improve my service and stated it was their part to provide service. horrible customer service and even worse cellular service forces me to Verizon!!!
T-MOBILE bro. Verizon is to expensive. IMO. Or sprint for that matter.
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Right, but they got the prime!!! Sprint doesn't have data in my area, I live in the sticks lol. I'll check into T-Mobile though. Thanks Guy.
Meh. Think about it. Its not the nexus prime your after. Its the ICS...
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I called them yesterday about my signal I get inside of my house and they wanted me to pay the same price for the micro cell. It's a bunch of bullsh*t. I'm stuck because I uversre tv, Internet, home and cell phone with them.
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Lol exactly why I haven't signed another 2yr contract with them.
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I too want to jump ship to Verizon. I know it's a little expesive but in the long run. I know Verizon's service is way better then at&t. I was going to get the Skyrocket but I have read in the forums it has a lot of issues. I just want good service and plus I do want ICS.
Go with Verizon, I use to have Tmobile but service at my place was horible.
You're right Prime it is the ICS that I'm after!!! My friend has Verizon and has excellent service where I have no service lol. I'm afraid of Tmobile due to the fact ATT is trying to over take them. What kills me is they know I'm in a poor reception area, it's on their map but refuse to give me a micro cell for free because other associates have handed them to anyone who called complaining. WTF to do looking at like 675 to cancel all 3 lines
The att and tmobile deal fell through. They aren't buying tmobile.
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ryanwatson said:
You're right Prime it is the ICS that I'm after!!! My friend has Verizon and has excellent service where I have no service lol. I'm afraid of Tmobile due to the fact ATT is trying to over take them. What kills me is they know I'm in a poor reception area, it's on their map but refuse to give me a micro cell for free because other associates have handed them to anyone who called complaining. WTF to do looking at like 675 to cancel all 3 lines
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If you have the money, pay 675. I'm thinking of canceling my 3 lines too. and I don't care how much it will cost me. I will pay for it. No more AT&T for me.
AT&T is under no obligation to provide indoor coverage - buildings can vary greatly in terms of construction materials, and some are very effective RF shields, making them impossible to cover without slapping a cell tower right outside just to cover that one building.
For example, if you go more than 100 feet into my local Wal-Mart, signal drops from 5 bars to one, sometimes none in parts of the store. AT&T's fault? No - there's nothing AT&T can do to penetrate that kind of building construction without the building owner's cooperation.
If you are getting decent signal outside your home, then AT&T is perfectly within their rights to tell you to spend money to compensate for your home being made out of RF shielding materials.
Either go for the microcell, or go for a Wilson amplifier system (which avoids the funky bugs many microcells seem to have).
There are a lot of things that suck about AT&T, but this isn't one of them.
Entropy512 said:
AT&T is under no obligation to provide indoor coverage - buildings can vary greatly in terms of construction materials, and some are very effective RF shields, making them impossible to cover without slapping a cell tower right outside just to cover that one building.
For example, if you go more than 100 feet into my local Wal-Mart, signal drops from 5 bars to one, sometimes none in parts of the store. AT&T's fault? No - there's nothing AT&T can do to penetrate that kind of building construction without the building owner's cooperation.
If you are getting decent signal outside your home, then AT&T is perfectly within their rights to tell you to spend money to compensate for your home being made out of RF shielding materials.
Either go for the microcell, or go for a Wilson amplifier system (which avoids the funky bugs many microcells seem to have).
There are a lot of things that suck about AT&T, but this isn't one of them.
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Well said. I notice that a lot inside Walmart. Even in my work place it used to suck a lot. My cube used to get 1-2 bars, wherein another cube like 10 feet away had more bars.
Looks like someone complained, and AT&T actually listened, now I get like 4-5 bars in my cube too.
Ah, entropy is always here to save the day. Good point.
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Entropy512 said:
AT&T is under no obligation to provide indoor coverage - buildings can vary greatly in terms of construction materials, and some are very effective RF shields, making them impossible to cover without slapping a cell tower right outside just to cover that one building.
For example, if you go more than 100 feet into my local Wal-Mart, signal drops from 5 bars to one, sometimes none in parts of the store. AT&T's fault? No - there's nothing AT&T can do to penetrate that kind of building construction without the building owner's cooperation.
If you are getting decent signal outside your home, then AT&T is perfectly within their rights to tell you to spend money to compensate for your home being made out of RF shielding materials.
Either go for the microcell, or go for a Wilson amplifier system (which avoids the funky bugs many microcells seem to have).
There are a lot of things that suck about AT&T, but this isn't one of them.
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truth !!!!
ehhh tomāto tomato. they are all the same. T-Mobile may have great pricing and customer service but they have little coverage and are going out of business. Verizon has close to identical billing to att but the insurance is 3+ times the price and from what my friends say the can kill you with taxes and fees.
both companies have good coverage. Verizon doesn't have magical towers that don't have dead spots. believe me. there is one area my phone doesn't work locally. just one. Verizon works there. 1/4mile up the road I have 4bars hspa+ pulling 12mbps and Verizon has no service. that's just the nature of cell phones.
att customer service varies. mine is great. no complaints. they suck updating Samsung devices and exert too much control over what's on there network like the whole automatic data plans on smart phones unless you have a number clear of ever having a smart phone. I'm not even sure how that's legal if you aren't under contract for a smartphone at that time but its their policy. just have to plan around it I guess. so to each there own. ill take my GSM network that can use off contract international phones and can talk and surf simultaneously on any data network, not just 3g or 4g and has 3g that is several times faster while I wait for widespread lte deployment. then ill see who is better once that happens.
I have always been on AT&T for years now. My wife got a Verizon work phone for a couple years. From our experience, we noticed that Verizon has more dead spots than AT&T, even while driving on freeways between states.
I did a speed test on android phones at my work place - on all four carriers - att, tmo, sprint and Verizon. Even in that my phone had the fastest speeds.
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i went through the whole indoor coverage(or not) with att i had to pay for microcell but they in turn credited my phone bill for that amount(no loss) it does suck having to call and threaten to cancel but it usually works.. i kind of like the challenge lol.. but i usually get what i want from them ..i soooo want the galaxy but i will wait for att version or gs3 or something... i have 4 lines with att (car payment) lol .. if you think about it its like $3000. a year for 3 smartphones and 1 dumbphone.. i think that with all carriers you will still run into these situations and will all pretty much give you the same hassle.
okay... if you really want to get their attention file a BBB complaint.
Someone from ATT's office of presidents will call or email you within 3-5 days and will more than likely offer you a free one. Just make sure to tell them your service outside the home actually sucks not just inside.
And yes the BBB complaints work
wade7919 said:
okay... if you really want to get their attention file a BBB complaint.
Someone from ATT's office of presidents will call or email you within 3-5 days and will more than likely offer you a free one. Just make sure to tell them your service outside the home actually sucks not just inside.
And yes the BBB complaints work
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For whiney little girls...service doesn't work in your home? Get a different service provider. If you insist on staying with a company who's service does not work in you're home pay for the m-cell device. END OF STORY/ MODS CLOSE THIS THREAD IT SUCKS
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Biggest issues you'll run into between AT&T and Verizon are "hidden costs". They are both the same company wise and support wise from my experience with them, however I'm in Wyoming and small markets have that issue.
Hidden cost wise, unlimited texting with AT&T gives you unlimited mobile to any mobile, meaning any carriers mobile. Unlimited mobile on Verizon is unlimited to other Verizon mobile only, both with text and calls. So find out what the people you text and call the most are on before you make the jump, and how much that teenage daughter texts to her friends that are probably not on the same carrier Since unlimited texting with verizon is only to other verizon people, texting outside of them there is a limit of "free" texts available rest is a cost.

Whitehouse.gov petition to fix cell phone subsidy pricing

I've started a Whitehouse.gov petition to fix the cell phone subsidy problems. The cost of early termination fees are out of control compared to the wholesale and retail cost of phones and I'd like to see the phone subsidy (or financing) billed separately from the service cost. This would make it extremely clear to all (even those who don't currently understand subsidies) how much the phones are truly costing them and hopefully improve pricing on the big carriers.
We need 150 signatures to get this to a public state where anyone can view it on the site. I'm requesting help from everyone to get these signatures to 150 and beyond. Please post on your Facebook and Google+ to get your friends and family to help out too.
Go here to view the Whitehouse.gov petition: https://petitions.whitehouse.gov/petition/require-fair-and-clear-pricing-wireless-services-and-wireless-devices/wf5hYdxd?utm_source=wh.gov&utm_medium=shorturl&utm_campaign=shorturl
The petition is as follows:
The federally permitted duopoly of AT&T and Verizon Wireless has severely hurt competition and driven up prices in the wireless services industry. This has occurred while wireless service prices elsewhere have plummeted due to technological improvements reducing the cost to deliver service. A 3 point approach is required to protect consumers:
1. Require separation of the true cost to the consumer for the phone hardware and wireless service so that they are billed separately.
2. Prohibit early termination fees that exceed the remaining balance of the fair market value of the subsidized or financed wireless hardware.
3. Require all carriers to offer wireless service without any financial penatly or increased cost of service for using a customer owned device.
Now before anyone tells me to own my cell phone service, please note that I already have with a Nexus 4 (previously G'nex) and Straight Talk, SIMple Mobile, and Solavei. I'm pushing this petition for everyone who doesn't yet "own" their service and to improve the future market overall.
While I agree with you about how you feel about contract services, I'm not sure how I feel about needing this to be legally policed.
The thing with the phones being subsidized is that I don't see this as being a perfectly cookie-cutter direct relation to the monthly contract price. Why is it wrong for a business to offer an incentive for a customer to sign a contract ? People need to do research and have willpower - why should people have to be legally protected from making bad choices ? Casinos, liquor, and cigarettes are legal, after all.
The problem I see with point 2 is that it's not just about the hardware - it's about trying to leave a contract that you agreed to before the end of the term. Would you rather they take people to court over it ? It's like signing any contract and people should take it seriously instead of expecting to just get out of it if they want to - if you stop making car or rent payments the contract-holder isn't going to just say, "o, that's okay, I'll let you off free this time because you seem so nice". If you sign a non-disclosure or non-compete agreement, they aren't going to say, "o, you sound so nice over the phone and you're having a bad time, just go right on ahead and break the contract we won't pursue it".
The real "solution" here isn't legal action, it's public awareness. Awareness that a contract is a serious agreement - and that they have options and need to think about if a contract is best for them or not.
The solution is educating people on their other options - if people talk with their money, the companies will hear it (and at this point, they're already starting to listen).
You're preaching to the choir. A two year contract is a real commitment and shouldn't be taken lightly.
However, think about it in a little bit different light. The carriers are a legalized duopoly. This has significant benefits to us - remember when we only had regional carriers and we had to pay exorbitant per minute roaming rates? Now virtually every carrier includes roaming free, because they each have such a far reach with their existing network. We also have near seamless coverage wherever we're driving.
Despite these benefits of having only a couple major carriers, keep in mind that the carriers use public assets to provide service. Their spectrum is leased, not owned, and the spectrum is public property. Furthermore, they are in a unique position to take advantage of us, and they do. Think of the utilities that we use for our homes. You usually only have one choice for electricity and one choice for natural gas service to your home. Because if that, the utilities are regulated to protect the consumer. But, it really only makes sense to have one of each of these utilities in any area due to the high cost of the infrastructure.
I see cell carriers in the same way. Allow them to provide the benefits that they provide with their massive, high quality networks, but protect the consumer from abuse.
Let's take a look at typical discrepancies on a high end android phone subsidy.
Retail cost of phone: $500-600
Likely wholesale cost of phone to the carrier: $300-400
Cost to the consumer on contract: $200-300
Maximum amount of money to be recouped by the carrier due to subsidy: $200
Now lets look at the cost of the subsidy of two years:
Monthly contract cost: $90
Two year contract cost: $2160
Monthly prepaid plan (being conservative, they're typically lower): $55
Two year prepaid plan: $1320
You can't possibly look me in the eye and tell me that a $350 ETF is right or ethical. The carriers are recouping over over $800 to cover the cost of the phone in this scenario, and I'm erring on the low side. Remember when the ETF used to be $125-175? The carriers tell us that advanced devices cost more than feature phones did, but that's a pure lie. In the day of lower ETFs, feature phones had the same high retail pricing that smart phones do today.
You may or may not be surprised to know how many people I talk to about cell phones who don't understand phone subsidies. It's unfortunate, but not everyone understands it.
I'm on a personal mission the take as many people as possibly away from the major carriers and I've been very successful. Many people don't realize the prepaid options they have. But, we unfortunately need regulatory intervention to truly fix the problem.
I hate the fact that I don't have options right now because I'm locked into a contract until December. When I truly looked at how much I'd save over the two years, it made me sick.
If everyone just did a little bit of simple math they would leave Verizon and ATT. I am leaving to go to straight talk when my contract is up.
I think most people want what they want though. And that is the latest and fastest tech out there that's available to them and when they're offered it 5 to 6 months before they're contract is up at a "discount", then they jump at it. But we all know that in two years, your new tech will be way out dated and you will have paid twice what it's worth. It's rent-a-center for smartphones. It just doesn't make financial sense.
That's just my two cents.
Sent from my Droid X2 using Tapatalk 2
---------- Post added at 06:29 AM ---------- Previous post was at 06:07 AM ----------
But I will have to disagree with you that we need regulatory measures. You would be taking away one's freedom to make choices. No one is forced to sign the contract just as no one is forced to buy a home or car that they can't afford to keep up. People need to be educated on how to live within their means by keeping a budget and sticking to it and learning to say no to themselves sometimes. Just because something is available to us or that we can afford the monthly payments, doesn't always mean we should buy it.
People no longer ask whether or not they should or shouldn't do this or buy that. They do everything they can to acquire the latest tech, gadget or possession thinking it will satisfy their unending desires. The problem is, they don't satisfy us.
Why do you think people are obsessed with rooting and constantly flashing roms? Because we get bored with our current os or how our phone looks and feels, so we think by flashing a different rom or mod, it will keep us happy and satisfied.
The only reason I'm saying this is because I'm just as guilty, but am learning how to be content with what I have. The moment I start becoming discontented with what I have, is when I buy into the lie that I just need to upgrade my phone and sign another contract to make me happy.
But to say that I need the government to tell me that I can't takes away freedoms and personal responsibility. Sometimes we need to make mistakes to realize that the decisions we made weren't so beneficial after all.
Sent from my Eclipsed Droid X2 using Tapatalk 2
If you read the petition, it's actually a pretty reasonable request. As a business owner myself, I am generally anti regulation.
My proposed regulations merely require separate billing of the subsidy and service and prohibits the carrier from recouping more than the value of the subsidized equipment in the event that you decide to end your contract early. It is my hope that showing people exactly how much the contract costs them might encourage people to make the right choice. I don't want the government telling people what they have to do, but I do want them to ensure that people are not lied to.
But I fully agree with you that people have lost the common sense to live within their means. I think it's particularly clear as a result of our economic crash related to the housing industry.
On the note of your contract through December, do the math. You may break even quicker than you think. I left Verizon in August, 11 months into my contract. I had a 6 month break even period, so it was a win in the end. I keep telling everyone that I know about the ROI of switching, and I've had pretty good success with friends and coworkers.
If my wife and I were to end our contracts right now, we'd save $90/month switching to straight talk. A couple of problems. The up front cost of early termination fees and buying GSM phones when both of ours are cdma only usable on Verizon. Pretty sure we'd more than break even over the course of the next 10 to 11 months. We don't have enough saved to pay up front. My wife loves her iPhone 4 and she could probably find someone on Craigslist who would trade a GSM for her cdma. I have a dx2 and could probably get 50-75 for mine. To buy a comparable GSM phone would cost me atleast 200. This all is off the top of my head. Any pointers or tips on the cheapest and best way to do this?
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Juice3250 said:
If my wife and I were to end our contracts right now, we'd save $90/month switching to straight talk. A couple of problems. The up front cost of early termination fees and buying GSM phones when both of ours are cdma only usable on Verizon. Pretty sure we'd more than break even over the course of the next 10 to 11 months. We don't have enough saved to pay up front. My wife loves her iPhone 4 and she could probably find someone on Craigslist who would trade a GSM for her cdma. I have a dx2 and could probably get 50-75 for mine. To buy a comparable GSM phone would cost me atleast 200. This all is off the top of my head. Any pointers or tips on the cheapest and best way to do this?
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Click to collapse
The aspect of having the financial resources to buy out your contract is a very common issue. Sometimes waiting out the contract is the best thing to do and obviously only you can ultimately make the right decision for your finanaces. If you make enough money, consider setting aside an extra amount of money every paycheck to get to the point where you can buy out your contracts. Maybe you can stop going out to eat for a month? Maybe you can skip the big trip with the kids over spring break? There's often a place to cut your budget if you feel it's the right priority.
I know that the Verizon iPhone 4 devices have GSM built in and it might even be unlocked already. However, unless jailbroken, I don't believe you can access the APN settings to use a different carrier. I'm not an iPhone expert, I'm all Android. I do think it's possible, and Verizon will likely give you a SIM unlock code if you need it and ask for it, just ask for the unlock code before you terminate your service.
I purchased a GSM Galaxy Nexus, unlocked when I switched. Then I bought a Nexus 4. Those are your best bets for going contract free, however there are other options. But the Nexus phones have the right bands to work with T-Mobile or AT&T, allowing you to hop MVNOs to chase the best price.
Start by reading this thread to get an understanding of prepaid smartphone service: http://forum.xda-developers.com/showthread.php?t=1455014
If you can't afford a Nexus phone, read this article for some ideas: http://androidandme.com/2012/12/reviews/best-unlocked-android-phone-for-any-budget-december-2012/
A great domestic source for a plethora of unlock phones: http://www.gsmnation.com/
Also, Amazon.com is a great source for unlocked phones.
Remember, you're paying less for service because you're not getting a phone subsidy. Expect to pay an exorbitant amount for your phone, but you will be rewarded by crazy cheap service!

FCC halts AT&T plan to raise Internet prices on Sprint and other rivals

The FCC halted a move by AT&T to artificially inflate market costs for competing carriers like Sprint, Verizon, and T-Mobile. AT&T's plan included tariff revisions that would raise competitors cost for backhaul as much as 24%. The end result would be increased cost to consumers and a less competitive market in which AT&T would be more likely to thrive. AT&T wanted to make the rate increase effective 12/10/13, but the FCC suspended it for five months while it investigates further..."There are substantial questions regarding the lawfulness of AT&T’s tariff revisions that require further investigation," the FCC said.
In a recent congressional hearing, AT&T Senior VP James Cicconi was asked how his company could raise prices 24 percent if it was operating in a competitive market. "I don't think we've raised prices; I think we eliminated some rate plans," Cicconi said.
Harold Feld said the FCC decision shows that new chairman Tom Wheeler "is not going to let AT&T rush him. This was a test." At first, AT&T argued that it didn't even need FCC approval to raise rates, but the FCC forced the company to file a request, Feld said.
That doesn't mean AT&T won't ultimately be able to raise prices, though. Telecom investment firm Stifel said it "doubt the FCC will ultimately prevent the phase-out outright, though we wouldn’t be surprised if it seeks changes to lighten the fallout somewhat."
Read the full editorial by Jon Brodkin here
Watch Harold Feld explain special access here

Wondering who the best US network is? Here's my take, from a former tower technician.

Disclaimer: This is my personal opinion based off the years I spent working as a contractor for wireless carriers and is not an official XDA opinion. I am not sponsored or paid by any entities mentioned, nor am I advertising for them - this is purely my subjective opinion based on my personal observations.
Furthermore, "best" in this context simply means quality of service and network - not necessarily a sales perspective such as price, plans, or phones.
A little known fact: Few towers are actually owned by the carriers; rather, the towers and shelters are usually owned by Real Estate Investment Trusts (REITs) such as American Tower, Crown Castle, and the like. Occasionally, the tower may belong to a state/county/municipal agency. In all cases, carriers such as Verizon, ATT, T-Mobile rent space on the tower and the ground for their equipment.
Background: As stated above, I worked as a contractor performing LTE upgrades and new construction for wireless carriers for several years. I installed and replaced antennas, radios, power plants, battery backup systems, and generators.
The time I spent working both on the ground and on the towers at many sites across 3 Northwest states showed me which carriers are investing the most in their infrastructure.
The best: Verizon, followed by ATT. Verizon has the most coverage by far, and arguably the newest and best equipment; ATT has spent a lot of money playing "catch up", and in a few cases have upgraded entire installations, but have a pretty solid mix of new vs old.
The worst: T-Mobile and Sprint/Nextel. Their equipment was the oldest, often the worst maintained, and if they ever put any money into upgrades, it was never obvious at any of the sites I visited. It really seems to me as though the majority of their revenue is spent on marketing, not invested in infrastructure.
The bottom line: You essentially get what you pay for. Verizon is often the most expensive, but they have the best network running on the best equipment. ATT has been working hard to improve their network as well, but still relies on some pretty old hardware. T-Mobile, who now owns Sprint, may have fairly low plan prices, but again, you get what you pay for - they get by with the bare minimum.
If you've been considering which network to go with, I hope this helps.
Oh this is very Interesting to get such an Overall perspective from the ground up, through your Amazing share of Knowledge!! Bravo!
Very interesting post and always what I suspected.
And lemme guess - ATT had the data edge until 8ish or so years ago before Verizon heavily invested in pursuit of the crown, right? Seemed that even when ATT was faster data-wise, Verizon was so much more reliable at providing "phone" service. I had Sprint back in the late 90s and oh man, it was dreadful. I swore - never again.
burnxtc said:
Very interesting post and always what I suspected.
And lemme guess - ATT had the data edge until 8ish or so years ago before Verizon heavily invested in pursuit of the crown, right? Seemed that even when ATT was faster data-wise, Verizon was so much more reliable at providing "phone" service. I had Sprint back in the late 90s and oh man, it was dreadful. I swore - never again.
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Click to collapse
I can't really speak to actual network performance as I'm not an engineer. I'm just the guy who put stuff together. We were constantly doing upgrades for ATT and Verizon. I did one site survey for TMobile in 3 years. The T-Mobile/Sprint equipment, where present, usually was ancient, poorly installed, and in bad shape. Verizon's equipment was pristine. ATT seemed happy to install new upgrades alongside 5-10 yr old equipment.
Hi, thank you so much for the answers and the explanations.
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