It’s the Money, Stupid!

In a copyrighted story that appeared in the 8/11/11 edition of Wireless Week, Maisey Ramsay wrote about an AT&T/T-Mobile merger document that appeared on the FCC’s web site, and then disappeared few hours later.

According to Maisey’s story, the interesting AT&T document showed that if the Commission approves the proposed T-Mobile merger, AT&T will expand its high speed data network to rural areas beyond that which they’ve already agreed to serve.

This is an interesting revelation given that the wireless carriers have claimed that its local governments that have stymied their growth through right-of-way regulations that they assert block deployment.

Yeah, right.

Of course we know that those carrier-claims are hollow, and that smaller communities go begging for modern celular/PCS/LTE/AWS services and high speed wireless internet

According to the article:

“AT&T senior management concluded that, unless AT&T could find a way to expand its LTE footprint on a significantly more cost-effective basis, an LTE deployment to 80 percent of the U.S. population was the most that could be justified,” AT&T counsel Richard Rosen stated in the letter.

The company said its merger with T-Mobile would spread the cost of the LTE expansion over a larger revenue base, allowing it to “better absorb the increased capital investment and lower returns associated with deploying LTE to over 97 percent of the U.S. population.”

Thanks, Richard…  You’ve confirmed what we’ve known, and what the Commission needs to know.

It’s all about the money…the carriers’ money…

…and not about claims that it’s the local governments are blocking deployment.  It’s the money, stupid!

-Jonathan

 

 

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Oh Thank Heaven for T-Mobile Burners at 7-Eleven

Attention TracFone, you now have more competition trying to knock you down from the top of the heap as the ‘burner phone‘ provider of choice…T-Mobile.

T-Mobile USA, Inc.  and 7-Eleven, Inc. have jointly announced that you can now buy a prepaid T-Mobile burner phone (with no term contracts, thank you very much)  7-Eleven® stores.

What’s better is that T-Mobile’s prepaid plans and services that run on its nationwide 4G network.  That means faster throughput for T-Mobile’s new burner customers including, ah, commercial activities such as independent pharmaceutical sales, and controlled detonations.

As early as 1994, 7-Eleven recognized its customers’ desire for affordable, no term contract airtime, began offering prepaid cards in 1994.

Starting just a few days ago (Aug. 1) 7-Eleven began offering its customers T-Mobile prepaid handset, the LG GS170 for a mere $29.99 (plus taxes and fees, of course)

According to T-Mobile…

the LG GS170 offers an intuitive user interface with one-touch speakerphone, large visible keys and a high-resolution color display. In addition, the LG GS170 features a VGA camera, MP3 ringtone capability, Bluetooth® 2.1, text and picture messaging capability, and email support packaged in a sleek, pocket-size design

“Industry projections indicate that prepaid service will continue its growth trajectory and is expected to comprise a significant portion of the wireless market within the next several years,” said Amy McCune, vice president of national retail for T-Mobile USA. “We believe 7-Eleven’s customers who seek accessibility and convenience will love this prepaid phone. They can expect to receive the high-quality customer service and access to a nationwide 4G network that T-Mobile users have come to expect.”

T-Mobile will offer a $50-per-month plan with unlimited talk, unlimited text and unlimited Web with no overage charges and the first 100 MB of data at up to 4G speeds, but why would true burner customers want to tie themselves down to such things.

Jesus Delgado-Jenkins, 7-Eleven’s senior vice president of merchandising, marketing and logistics knows how valuable prepaid burner cards are to his organization: “To give you an idea of how many prepaid transactions we conduct, consider that if all the prepaid cards sold on an average day at 7-Eleven stores were placed end to end, they would span more than 30 football fields.”

And don’t expect too much from the LG GS170.  As of the time I wrote this, the  T-Mobile LG GS170 showed that only “15 out of 49(31%)customers would recommend this product.”

Oh well.

Oh Thank Heaven!

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CPUC to Review AT&T&T Proposed Merger

The California Public Utilities Commission will launch an investigation into the pending AT&T/T-Mobile merger.

AT&T&T LogoThe Commission, which is now populated by a majority of members appointed by Gov. Jerry Brown, will evaluate whether to propose conditions on the merger.  The Commission will be taking public testimony, and moving its review along a fast track which may result in a Commission action in October of this year.

Here are two links with additional information on the pending CPUC review:

The Los Angeles Times article: http://latimes.com/business/la-fi-puc-att-20110609,0,2964962.story

The CPUC Press Release: http://docs.cpuc.ca.gov/word_pdf/NEWS_RELEASE/136944.pdf

 

 

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T-Mobile’s “Truly Unlimited” Plan is Truly Limited

Here’s a cute little Now-You-See-It-Now-You-Don’t bit of advertising slight-of-hand:  T-Mobile’s current “Truly Unlimited” marketing campaign.

Here’s a part of the current advert on T-Mobile’s web site (and paralleling the TV ads currently running):

 

T-Mobile's Truly Unlimited plan?  I think not!

But once you’re wowed by the big pinkish letters at the top, your eyes may not wonder down to the fine print above, which says “Includes 2 GB of full-speed data.”

Huh? How can something “Truly Unlimited” have a full speed data transfer limitation?  Later in the ad, also in mouse type is this little gem: “T-Mobile’s plan includes 2 GB at full speeds; reduced speeds for remainder of bill cycle.”

Reduced Speed is, ah, “Truly Unlimited”?

Then, buried down in the page is this little gem:

Data: Data speeds slowed after 2000 MB per billing cycle. Capable device required to achieve 4G speeds. Your data session, plan, or service may be slowed, suspended, terminated, or restricted if you use your service in a way that interferes with or impacts our network or ability to provide quality service to other users, if you roam for a significant portion of your usage, or if you use a disproportionate amount of bandwidth during a billing cycle. You may not use your plan or device for prohibited uses. Messaging: You will be charged for all messages you send and that are sent to you even if they aren’t received. Length/size of messages may be limited.

Now that’s “Truly Unlimited” in my book!

Click here for a PDF of T-Mobile’s “Truly Unlimited” ad as it appears on its web site.”

You’ve got to love those marketing types…And the clever attorneys who write disclaimers for them.

Jonathan

PS: Does anyone know what the ‘reduced speed’ is?  300 baud?  (Sorry…dating myself…) jk

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More on Substantial Evidence (YAT-MC) (T-Mobile v. City of Margate)

In T-Mobile South LLC v. City of Margate (Florida) decided on April 4, 2011 (SD FL Case No. 10–cv–60029), District Judge Alan Gold discussed the topic of substantial evidence in several interesting lights.

In granting summary judgment to T-Mobile, Judge Gold said

d. “Substantial Evidence”Looking beyond the text of the written Resolution to the transcript of the December 9 Hearing, T–Mobile argues that the City Commissioners’ ultimate decision denying its Application was not supported by “substantial evidence” as required by 47 U.S.C. § 332(c)(7)(B)(iii). T–Mobile asserts that the only opposition voiced against its Application was “purely generalized objection, with no specific evidence or support” and “unqualified, unscientific opinion of the City Commissioners and lay members of the public.” [ECF No. 24, p. 13]. T–Mobile concludes that such generalized opposition may not qualify as “substantial evidence” under the TCA.

*10 The City responds to this argument with two short paragraphs in which it outlines the definition of “substantial evidence” and notes that T–Mobile bears the initial burden of proof on this issue. [ECF No. 33, p. 8]. This response raises no disputes of material fact and offers no reasons why the Commissioners denied the Application, much less any explanation as to why those justifications for denial should qualify as “substantial evidence” under the TCA. As T–Mobile notes, the City also incorrectly argues that T–Mobile must present “substantial evidence” whereas the TCA actually requires that relevant State or local governmental denial decision be supported by substantial evidence. 47 U.S.C. § 332(7)(B)(iii).

Although I could hold in T–Mobile’s favor alone on the basis of the City’s inadequate response on this point, I am also obligated to consider the record in its entirety when reviewing a dispute governed by § 332(c)(7)(B)(iii). Thus, I look once more to the transcript from the December 9 Hearing because the City’s official written decision provides no reason for the denial. As reflected in that transcript, the City Commissioners’ votes to deny the Application were not accompanied by any contemporaneous comments from the Commissioners offering reasons for their votes. [ECF No. 26–1, pp. 86:11–87:11]. Elsewhere in the transcript are certain complaints voiced by City residents against T–Mobile’s Application. Some residents indicated that they opposed the plan because they preferred that T–Mobile place the new tower in its neighboring town of Coral Springs.14 But as noted above, the City concedes that a significant coverage gap exists in the City of Margate, and it advances no arguments that the heart of that gap was in Coral Springs, or a neighboring town, or any place else other than Margate. Likewise, the City Attorney responded to these comments by informing the residents that Margate’s ordinances prohibit using residents’ preferences to place the tower in another town as a basis to deny such an application.

Another city resident cited health concerns such as radiation as a reason for his opposition to the Application. [ECF No. 26–1, pp. 64:24–65:22]. Again, the City Attorney responded that the “federal courts have specifically ruled that radiation cannot be the basis for turning this down.” [Id. at 66:2–4].16 It does not appear that the City Commissioners were concerned with the aesthetics of the proposed WCF. When T–Mobile representatives offered to show pictures or designs of their proposed “flag pole” design, at least one City Commissioner responded: “We don’t need to see it. We know what it looks like.” [ECF No. 26–1, p. 24–27]. Likewise, when the City Attorney asked the City’s independent consultant to comment on the proposed idea, a City Commissioner stated “No, I don’t want to hear anymore.” [ECF No. 26–1, pp. 71:25–72:1]. Several other aspects of the December 9 Hearing transcript provide the distinct impression that the City Commissioners denied T–Mobile’s application in order to appease a crowd of local residents who had gathered to attend the hearing and oppose the Application.

*11 Eleventh Circuit case law provides certain guidelines about the types of reasons a State or local government may rely on in order to deny an application under the TCA. For example, a “blanket aesthetic objection does not constitute substantial evidence under § 332.” See Michael Linet, Inc., 408 F.3d at 761. But aesthetic objections “coupled with evidence of an adverse impact on property values or safety concerns can constitute substantial evidence.” Id. Similarly, denial may be based on testimony of local realtors that the proposed cell tower would adversely impact home resale values or if the site may have a negative effect on nearby air traffic or to the safety of school children. Id. at 760; City of Huntsville, 295 F.3d at 1208–09. But “generalized objections with no articulated reasons” and “rationalizations constructed after the fact” do not constitute “sufficient evidence” under the TCA. Preferred Sites, 296 F.3d at 1219–20 & n. 9.

This case law provides no support for local governments that deny a provider’s Application on the basis of health effects or a preference to place the relevant cell tower in a neighboring town. Construing this evidence in the light most favorable to the City, I can only conclude that there are no disputes of material fact that the City did not provide sufficient evidence for its denial of T–Mobile’s Application, and a reasonable mind could not accept the evidence in the record as adequate to support the City’s denial.

(Emphasis added.) T-Mobile S. LLC v. City of Margate, No. 10–cv–60029, 2011 WL 1303898, 9–10–11, Slip Copy (S.D. Fla. Apr. 4, 2011). 

“YAT-MC” = “Yet another T-Mobile Case”

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T-Mobile v. City of Newport News VA – Substantial Evidence, Not.

In T-Mobile Northeast LLC. v The City Council of the City of Newport News, VA et al (EDVA Case No. 4:10cv82), the magistrate judge (Hon. T. Miller) spent a fair amount of time in his opinion discussing what constitutes substantial evidence in the way of claims of property devaluation resulting from the proposed installation of a cell tower.

Judge Miller said, “[a]lthough the Court is aware of the Fourth Circuit’s charge to not hold citizens to a standard which requires them to come armed with a slew of experts to defeat any CUP, the Court finds that such a nonspecific claim as to a possible decrease in property values for the general community falls closer to the “speculative” nature of comments less likely to be considered substantial evidence by the reasonable legislator.”  T-Mobile Ne. LLC v. City Council of Newport News, Va., No. 4:10cv82, 2011 WL 1086496, at *6 (E.D. Va. Feb. 4, 2011).

In her decision adopting the recommendations of the magistrate judge, Judge Rebecca Smith made it clear that, “[ ] unsupported statements about fears of some possible reduction in home value without further evidence cannot form the basis of substantial evidence.”  (Emphasis in the original.) T-Mobile Ne. LLC v. City Council of Newport News, Va., No. 4:10cv82, 2011 WL 1103004, at *1 (E.D. Va. Mar. 23, 2011).

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AT&T&T Likely to Have to Divest Portions of Networks

Reuters is reporting that AT&T CEO Randall Stephenson believes that his company will have to divest portions of its existing wireless network to secure federal permissions to acquire T-Mobile.  Stephenson’s comments were made in New York at a Council on Foreign Relations event held on March 30, 2011

My suspicion is that T-Mobile will be similarly required to divest portions of its existing wireless network in the same or adjoining areas as those assets that AT&T will shed to make the deal work for the Feds.

The shed assets will help strengthen the remaining, small competitors, who will then become known as current take-over targets for other major players.

Stephenson also said at the same event that he expected consumer prices for wireless services to continue drop as a result of the proposed merger.  His comments came just hours before April Fools Day.

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AT&T&T?

It’s no surprise that T-Mobile will soon cease to exist in the U.S.  What is a surprise is that AT&T is claiming the prize, rather than the widely-rumored suitor, Sprint/Nextel.

What is more of a surprise is that T-Mobile lasted so long before giving up the ship. T-Mobile has always played a game of the catch-up wanna-be to the legacy national carriers in the U.S. 

What does make sense is that AT&T, rather than Sprint/Nextel looks like the winner: Sprint/Nextel certainly needs access to more sites and licenses, but AT&T can make better use of T-Mobile’s assets, specifically the AWS-Band frequency assignments around 2100 MHz.

AT&T went the other direction when it focused, rightly, on gaining new 700 MHz frequencies for its LTE data (and later, voice) deployments.  By taking T-Mobile, AT&T gains more spectrum in the 1900 and 2100 MHz bands to add to its existing 700 and 860 MHz assignments.  Sweet.  AT&T’s recent purchase of the national 700 MHz band license from the ill-conceived and now all-but-defunct MediaFLO/FLO-TV operation of Qualcomm makes even more sense given the pending marriage with T-Mobile.  Sweeter.

Sprint could not have benefited to the same degree as AT&T given that it does not have 860 MHz band assignments (yes, I’m discounting the Nextel assignments for this discussion since those have turned out to be such a poor deal for Sprint).

IF THIS DEAL GOES THROUGH, and there’s certainly a big IF in there, I suspect that the even-newer AT&T will be forced by the DOJ/FTC/FCC to sell off chunks of the existing networks of both firms.  This has been the trend in prior mergers/buy-outs, and it’s unlikely that this deal will not see sales of major network assets in the name of competition.

What’s next?

For site landlords, in about a year it will be time to take out their AT&T and T-Mobile lease contracts and look at those transfer terms.  It’ll be a really interesting time for site lessors with both AT&T and T-Mobile currently collocating at the same site.

For other wireless carriers, this deal will force some shotgun marriages. 

I predict that Sprint/Nextel will now look to MetroPCS.  Verizon will look at MetroPCS, too.  This may also be the start of the end-game for Cricket Wireless.

Finally, many of the roaming contracts between the biggies and the smaller regional PCS and cellular carriers contain buy-out options (the biggie can for the sale of the small fish).  We’ll see Verizon continue its aggressive campaign of Roam-to-Buy as a first step of blunting the AT&T/T-Mobile deal.

For now I think we should start calling the new network: “AT&T&T”!

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2011 Prediction: AT&T Data Network to Speed Up

I predict that AT&T’s data network will experience a noticeable increase in throughput speed throughout 2011.  That’s great news for AT&T, and they can thank Verizon for helping to achieve that goal.

Of course, while AT&T struggles to deploy its LTE network, it’s goal of speeding its network will be aided in no small part by Verizon’s expected announcement, on Tuesday 1/11/11 (perhaps at 11:11:11?) that Verizon will finally offer its subscribers an Apple iPhone.

Verizon’s recent announcement that it, too, now calls its data network “4G” just like T-Mobile (…who knew?) sets the stage for heightened expectations, discovery of data holes in Verizon’s network, and other fun stuff.

Years ago I switched to Verizon from AT&T because AT&T’s voice network was inferior in terms of reliability.  Until a couple of years ago I wasn’t a data user, but I switched to a VZW Crackberry.  Last year I dumped the Crackberry Curve for a Motorola Droid 2 (it’s a good firmware/software platform in a fat, clunky body with a battery demanding nightly recharges…look at HTC, instead of Motorola).

Yeah, when VZW does offer the iPhone, it’s virtually certain that I’ll join the million or so other users switching from AT&T and upgrading from within Verizon.  Yes, I’ll be part of the problem; not part of the solution.

As a tip for you unhappy AT&T iPhone users: You can always use your existing GSM iPhone on T-Mobile’s new “4G” network.  If you jailbreak your phone and go to T-Mobile, you DO NOT  have to buy an expensive new iPhone like you would if you want to go to VZW’s sysetm.  That’ll make all of us existing Verizon users very happy, too!

Jonathan

PS: I also predict that 2011 will see (1) huge subscriber churn and net subscriber loses for AT&T, and (2)  someone in a wireless marketing department deciding that it’s time to call their network 5G!  I’m waiting for 9G, myself. -jlk

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Elements of Wireless Design

In yet another in my occasional series of “elements of wireless design” I’d like to share with you an outstanding design developed by the City of Piedmont, California and T-Mobile.

Excellent T-Mobile Camo Site in Piedmont, California

The antennas are hidden behind the faux vents in the bell tower.  The equipment is inside the building.  If I had not had this site pointed out to me by the rightfully proud planners in the City of Piedmont, I never would have guessed it to be a PCS wireless site.

Good job, Piedmont!

Good job, T-Mobile!

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