Author Archives: Jesse

Out of the Woods? Vonage Settles All Outstanding Patent Lawsuits

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After getting sued by all of the major telecommunications providers in rapid succession, Vonage might finally be over and doe with patent issues. They've recently settled a suit from Nortel Networks for a cross-licensing agreement instead of cash, a boon considering the big bucks they've had to shell out to companies like AT&T. Given their cash-poor state and some recent reliability issues, it seems that only a hatred for traditional phone companies and price-gouging by new cable entrants is keeping the provider afloat. I've overall been happy with Vonage despite some of their tech support shortcomings, but I've been a bit spooked by the possibility that they'll pull a SunRocket sometime in the near future.

The Internet Crunch: Copper Lacks Capacity for Next-Generation Networks

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If you don't currently read Robert X. Cringely's column on PBS.com, you had better rectify that ASAP. A few weeks ago, he wrote on the coming crunch that's going to cripple cable networks unless they make some big changes. The in-depth analysis gives you a good feel for how close to the brink Big Cable has come.

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The Salt Lake Tribune Gets It All Wrong

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It's one thing to see an organization with an agenda produce a slanted and worthless article. It's an entirely different thing to see a major newspaper do the same thing. As trusted gatekeepers of information, we expect journalists to aspire to higher standards to report the whole story from an objective viewpoint. Sadly, it appears that the Tribune's Steven Oberbeck isn't into that kind of thing.

The holes in the story are numerous. There's no mention of the Qwest lawsuit or their illegal practices to block access to telephone poles. There's no mention of the delays with disbursing money from the RUS loan. There's no mention that Paul Morris left UTOPIA to go into semi-retirement and Roger Black probably has his hands full as the lawyer for the Utah League of Cities and Towns. Even more disturbing is the insinuation that UTOPIA has put tax dollars at risk when not one red cent of money has been taken from pledging cities to cover operations or the debt service. It's one of the sloppiest pieces of supposed journalism I've ever seen.

Thankfully, the Trib's readers are way too smart for it. Many of them have been filling in the gaps that Mr. Oberbeck left out, doing the job he should have done in the first place. Unfortunately, many have already fallen for the position piece disguised as news. Shame on the Tribune for running such a poorly researched article and shame on Steven Oberbeck for writing it.

UPDATE: The Trib now has something up on it in the Opinion section where, as one reader noted, it belonged from the get-go.

Consumers Unprepared for the Analog Switch; Which Switch? Both of Them!

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As the nation prepares to ditch analog signals for digital nirvana, a lot of consumers are being left in the lurch. Most of you readers know about the upcoming switch to digital TV signals, but does your dear Aunt Sally? According to a recent survey, probably not. Less than half of those asked knew about the switchover and a scant 17% identified the correct cutover. (In case you forgot, it's February of 2009.)

The FCC and cable industry are starting up an expensive ad campaign to warn folks, but it's looking like the switch to digital is probably going to be a fiasco. At least one cable system is preying on the ignorance about the switch to hawk more cable services and the FCC is taking a "let the market sort it out" approach. (Because, you know, everyone buys a new TV every couple of years anyway, right?) If you're still sporting an analog set (like yours truly), grab your $40 coupon from Uncle Sam and get ready to buy the converter boxes starting on January 1. Also don't forget to read the handy guide from Consumer Reports to get informed about the switch and make sure your friends and neighbors are aware of the switch.

There's also a lesser-known analog cut-off: cellular service. While the impact will be "minimal" in the words of the wireless industry, there's still a potential for several million phones to be cut off from 911 service. These include handsets donated to programs for abused women. What else is affected? How about OnStar systems and many wireless burglar alarms? GM has been trying to get people to buy a $15 digital upgrade to keep the systems running, but they continued to sell analog after the cut-off date was announced.

AT&T has a different kind of cut-off in mind. The company plans to phase out all of its pay phones. With a scant 65,000 pay phones in service (compared to 66,000,000 mobile phones), they've decided to wholesale the service and let other companies give it a go of the old coin-operated machines. 

Delays in RUS Money Stall UTOPIA in Centerville

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Thanks to some foot-dragging by Uncle Sam, UTOPIA construction in Centerville has been put on hold until the Phase II funding comes through. This isn't the first time either; Phase I cities experienced some months-long delays while the loan application was being processed. The delays now are related to releasing the funds, currently six weeks overdue.

I can only imagine the frustration in Centerville right now. UTOPIA just finished putting in conduit and boxes for months only to be held up on the actual running of fiber optic cable. I'm sure that residents of Perry, however, are glad to see construction start up in the meantime. 

It's Comcastic! Cable Operator In Dire Straits

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It's a bad time to be Comcast. They dropped 7% in the American Consumer Satisfaction Index. They banished public access channels to expensive and less visible digital tiers. Rumors are flying that the Comcast Hammer Lady got dropped off the air while she was on Good Morning America. Then they get caught trying to stuff a poll on Comsumerist. (FYI, they still lost.) Add on the abysmal customer service record and some are wondering how much longer Comcast will be alive to kick around.

It's not going to help when they're continuing to kick their customers while they're down. Customers in Washington got a notice in the mail that prices were being hiked yet again. Users who want TiVo service will have to cough up an extra $2.95 a month (on top of the DVR rental) for the feature. Then there's incidents like this where customers are getting overcharged or billed for services they never got.

It's no wonder the company is set to lose customers in 2008, though Comcast is in full-on denial. They lay the blame on the housing slump and competition from FIOS. (Speaking of FIOS, those markets are the most likely to see DOCSIS 3.0 rollouts next year; don't expect any love for Utah.) Ars Technica seems to think this battering will ultimately be good for Comcast customers, but I'm not so sure. They're still terminating accounts for using "too much" of their unlimited Internet, the price hikes seem to have no end in sight and the amount of online hate for the cable giant seems to grow every day.

FCC War on Cable: Martin Moves to Cap Comcast, Congress and Comcast Fight Back

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Undaunted in his previous attempts at curbing the growth of cable operators (arguably to the benefit of incumbent telcos), FCC Chairman Kevin Martin managed to get the commission to pass a rule to prevent cable operators from growing past 30% of the available national subscribers. The 70/70 rule used to restrict them comes from major telecommunications legislation from 1934 and 1984 that aims to prevent providers from totally dominating markets.

Predictably, Congress is threatening to change up the way the FCC can assert itself and cable operators have become emboldened to sue for the right to exclusive contracts in MDUs. There's also a Congressional probe in the works to poke around the various leaks, disregard for proper procedure and abuse of power. Given the strong-arming he's used on Big Cable and the light touch on Ma Bell, it seems like more oversight is overdue.

Open Network Mania: Verizon Does a 180, AT&T Rides the Coattails

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Remember Verizon's lawsuit just a few months ago trying to get rid of the open access requirements in the 700MHz auction? Neither does Verizon, apparently. The company decided to allow anyone to bring any compatible device of their choosing to the network. The timeline? It'll be done by the end of 2008, about the time the 700MHz band opens up. Not to be outdone, AT&T decided to use the buzz over open networks to say they had open networks too. Of course, this is the way it's always been, yet a few reporters got sucked into the blatant PR move.

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Steven Titch's Latest Hackjob

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As predictable as the sun rising in the east and continued strife in the Middle East, Steven Titch is at it again. As usual, he's spouting out about iProvo without a clue as to what he's talking about. Not only was he not present at the meeting referenced in the newspaper articles he linked, but he failed to go beyond the half-story presented by the Deseret Morning News (and their accompanying editorial) to get the whole picture.

For instance, he managed to skip the benefits to city departments (faster turnaround to restore power, decreased disconnect/reconnect costs, enhanced telecommuting) while condemning the idea that city departments should, you know, actually pay for their usage. The way he framed it, however, was masterfully deceptive:

And while Mayor Lewis Billings is loath to raise taxes to support iProvo, he and interim project director Kevin Garlick have said they might raise the rates city departments pay for iProvo services. Any resulting tax increase then, while not funding iProvo directly, will fund the ability of the city to do business with iProvo.

No joke they're talking about raising the rates that the city pays. After all, when you go from nothing to something, that's an increase.

I guess you can't count on objectivity or accuracy from a guy whose paycheck was cut by Qwest for several years. 

iProvo: Does Councilman George Stewart Have a Conflict of Interest?

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It's no secret that Provo City Councilman George Stewart has been a rather outspoken opponent of iProvo. The former mayor has given Mayor Lewis Billings one heck of a fight over the system and it's financing by the city. However, an anonymous commenter on a recent story at the Deseret Morning News gives his tenacity a new dimension.

MStarInsider | 10:47 a.m. Dec. 5, 2007
It’s too bad that the Associated Press and Deseret Morning News continue to fail to report that Councilman George Stewart’s namesake and firstborn son – George Stewart Jr. is Eschelon/Integra’s Senior Account Manager for the Wasatch Front here in Utah, and Junior would have every reason to hope for the failure of both iProvo and UTOPIA.

I wonder if there is a small conflict of interest in Councilman Stewart’s continued pointed pessimistic attacks on iProvo – though he should represent the interest of the City of Provo without bias.

(source, scroll down near the bottom)

A quick search of LinkedIn, the popular business social networking site, does show a George Stewart working as a Senior Communications Specialist for Eschelon (link to public profile, login to view the full profile with company name). If the George Stewart I see on LinkedIn is the same as the Councilman's son, it would seem that some explanations are in order. At the very least, Councilman Stewart needs to fully disclose this relationship to the telecommunications industry before uttering another peep about iProvo.