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wireless
Verizon will force customers to self-install Google
The rumor mill says Microsoft has offered to pay twice what Google offered to take over as Verizon's default search engine on phones. I'll let Henry Blodget do the business analysis here ("MSFT will really take a bath on this one"). As a Verizon loyalist, my reaction is slow-burning rage. They're going to pocket a billion bucks and make me reconfigure my phone. Amazing what you can do if you truly hate your customers. (Photo by AP/Virginia Mayo) -
your privacy is an illusion
ISPs agree on how to spy on you
Verizon, AT&T and Time Warner Cable executives told Congress yesterday they would not track user behavior online unless given explicit permission, but that they would prefer to police themselves, instead of having to deal with government oversight. Because that would be Orwellian. [Wired] -
great moments in customer service
Verizon tech tapped 950 landlines for $220,000 in sex chats
It's gotta be some kind of world record: A former (we're guessing: fired) Verizon technician in New Jersey spent 15 weeks' time in the past 40 weeks on sex-chat lines. WCBS-TV has the minimal info available so far: More » -
mysteries
Why do text message rates keep going up?
Text message rates have doubled since 2005, from about 10 cents each to 20 cents today. Senator Herb Kohl (D.-Wisc.), who chairs the Senate's antitrust subcommittee, has asked Verizon, AT&T, Sprint Nextel and T-Mobile to explain it to him. "It does not appear to be justified by rising costs in delivering text messages," the letter says. "Text-messaging files are very small, as the size of text messages are generally limited to 160 characters per message, and therefore cost carriers very little to transmit." Kohl's suspicion: The four big carriers have increased their prices nearly in sync, suggesting a collusion to wring more money out of the market rather than to compete against one another. Read the whole thing — it's no Series of Tubes. (Photo via Gizmodo) -
i hate it here
850 new reasons for San Franciscans to hate AT&T
So that's what those things are. The box in the photo holds equipment for AT&T's U-verse cable service. The grumpy guy is David Crommie, president of the Cole Valley Improvement Association. He's torqued because AT&T got an exemption from environmental review requirements to install up to 850 of these things around the city. You'll also see smaller green boxes on city sidewalks — those are Comcast's. Verizon manages to bury all its equipment underground. The CVIA has stalled AT&T's plans, but the San Francisco Daily Post reports that "AT&T is now expected to reapply for exemption." (Photo by AP/Paul Sakuma) -
wireless
Verizon's anti-iPhone tip sheet leaked
A tipster sent our gadget sister site, Gizmodo, a copy of Verizon's talking points for its employees to use against iPhone mania. Like last year's leaked "iWhatever" email from COO Jack Plating, it comes across mostly as validation that there's no phone like the iPhone in buyers' eyes. More » -
search
Verizon Wireless chooses Google over Microsoft
Verizon and Google are finalizing a partnership that would turn over Verizon's mobile search and advertising to Google. Verizon considered a deal with Microsoft, but decided it wanted Google to put its search bar on device home screens because it "could prove attractive to consumers who reflexively use the Internet search engine on their PCs," reports the Wall Street Journal, citing people familiar with the matter. A translation: More » -
labor
Qwest signs contract as union chalks up another win
The Communications Workers of America and the International Brotherhood of Electrical Workers have reached a tentative agreement with Denver-based telco Qwest, pending approval by the 20,000 employees under contract. The agreement was reached in the eleventh hour after the CWA and IBEW had voted to authorize a strike when their contracts expired at midnight on Saturday. The contract calls for 9 percent raises over its three year term, and brought employees of Qwest's directory-assistance operations under contract. Based on the language of the CWA's press release, critics might complain about the agreements reached on healthcare, with the union citing the healthcare cost epidemic and Qwest's financial performance as mitigating factors in their concessions to the bosses during negotiations. More » -
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labor
Verizon avoids strike, for now
65,000 employees of Verizon represented by the Communication Workers of America and the International Brotherhood of Electrical Workers agreed to postpone any strike after their contracts expired over the weekend. The unions agreed to indefinitely hold off on any work stoppage because progress was being made on the health benefits and job security fronts. Verizon has been aggressively replacing unionized employees with non-union technicians by outsourcing work to subcontractors. [WSJ] (Photo by AP/Mike Groll) -
politics
Senator Ted Stevens indicted for making "false statements"
Ted Stevens, the Republican Senator from Alaska who has held office for a record 40 years, has been indicted on seven counts of making false statements in connection with illegal influence peddling by the likes of convicted Veco CEO Bill Allen — who says the company dispatched employees to remodel Senator Stevens's Alaskan home and paid former Alaskan State Senator Ben Stevens, Ted Stevens's son, $234,000 in bribes. However, none of the indictments arises from his much-parodied description of Internet infrastructure as a "series of tubes." More » -
loren feldman
"TechNigga" comic's made-for-Valleywag video
Disgraced video comic Loren Feldman has been removed from Verizon's phone and broadband video-on-demand library. I wouldn't compare the guy to Lenny Bruce, but this much is true: Feldman, a member of both the Screen Actors Guild and the risqué Friars Club in New York, goes out of his way to be offensive and sometimes it works. OK, so sometimes it doesn't. His year-old "TechNigga" clip, which Verizon didn't even carry, got Feldman axed from the lineup. "TechNigga" consisted of a Jew portraying a stereotypical black thug — booze, dope, hookers, etc. What could go wrong? Far funnier and less awwwwwwkward is Feldman's puppet interview with Jason Calacanis's bulldogs from April. The puppet host is a spoof of marketing consultant Shel Israel. At this point, you either know all about Shel and his contempt for Feldman, or you don't care. Just watch the video. More » -
loren feldman
"TechNigga" video gets 1938 Media removed from Verizon
1938 Media is a one-man videoblog run by Loren Feldman. The guy is funny, in that edgily-offensive way that makes you wonder when someone's going to punch him in the face. Last week, Verizon cut a deal with Feldman to market his videos on Verizon phones and broadband connections — a big win for a one-man act. But eight days later, 1938's clips are gone from Verizon. The reason? A backlash from activist groups who've branded Feldman's shtick as racist. A year ago, Feldman posted "TechNigga," in which he pandered to stereotypes in an attempt to parody TechCrunch. The video wasn't in Verizon's collection of 1938 clips, and Feldman long ago made his apologies. Protesters don't care. Watch the first 1:05 of "TechNigga" and you'll understand everything. -
quotable
Verizon CEO thinks iPhone hype is a "conspiracy"
Obviously tired of being pestered with questions about iPhone this and Steve Jobs that, Verizon CEO Ivan Seidenberg put on a tinfoil hat and sat down for an interview with the Financial Times: More » -
politics
TelCos bought wiretapping immunity for a song
The average contribution from AT&T, Verizon and Sprint to the 94 Democratic congresscritters who change their votes from "no" to "yes" on the bill which would grant the companies immunity from charges of illegally wiretapping American citizens? $8,359. How much for all 293 "yes" votes, total? $2,830,087. Eleven California dems changed their votes — Speaker of the House Nancy Pelosi, who represents San Francisco, scored $24,500 in sweet, sweet lobbyist contributions. [MAPLight.org] (Photo by AP/Susan Walsh) -
child porn
Why Verizon, Sprint And Time Warner Shouldn't Block Child Porn
The New York attorney general's office ran a "sting" in which agents posed as customers and complained to the companies that they could see child porn. When the service providers ignored them, the agency threatened the companies with fraud. Now, according to the Times, the ISPs are paying over a million dollars to Andrew Cuomo's office and promising to block child porn sites as identified by the office — to all their subscribers across the U.S. As despicable and exploitative as child porn is, blocking it this way is a terrible move. More » -
your privacy is an illusion
Verizon's privacy reputation is due for an update
In a statement last updated in 2003, Verizon CEO Ivan Seidenberg calls the company's "Privacy Principles" the best in the industry. One of Verizon's broadband customers doesn't buy it. He's forwarded us an email Verizon sent him updating its "Acceptable Use Policy." The policy now reads: More » -
rumor
Verizon In Talks to Buy Alltel, Become Biggest Wireless Carrier With Over 80 Million Subscribers
Not the first time this rumor has popped up, but Reuters is reporting that Verizon is in talks to pick up nationwide runt Alltel in a $27 billion deal that would make Verizon Wireless the biggest carrier on the block, with over 80 million subscribers, topping AT&T (67 million + 13 million). The deal's feasible—both use CDMA, and in a saturated wireless market where growth is mostly coming from theft and smaller carriers anyway, buying 'em outright might just be easier. (CNBC's reporting it too, check it for some more biz analysis.) And here's the WSJ take.[Reuters] [Gizmodo] -
google
Spectrum winner Verizon not concerned with letter of the law adherence to Google's "open rules"
The members of Google's team for its multibillion-dollar wireless-spectrum bid worked themselves to exhaustion and sickness. That was all in an effort to force the contest's eventual winner to abide by "open access" rules Google convinced the FCC to adopt last summer for its 700-Mhz spectrum sale. The auction winner, Verizon, seems to have little concern for Google's mobile whimsy. It plans to launch and heavily market "crippled, walled garden phones with no VoIP, Verizon content, highly restricted [terms of service], [and] high priced SMS," according to Broadband Reports. More » -
online advertising
AOL lands Verizon's 94 million monthly pageviews — but will splashy deal make money?
AOL moved into its new New York headquarters today, and new ad boss Lynda Clarizio has roped Verizon into paying a portion of the lease. The companies announced a deal today that will make AOL's Platform-A the exclusive manager of Verizon's Web and wireless ads. That inventory includes 94 million pageviews a month. It's Clarizio's first big deal after replacing Curt Viebranz in an internal coup earlier this year. He was the the sixth advertising chief at AOL since 2001. But should we be that impressed? More » -
wireless
Verizon pays dearly for right to operate open network
The big winner in the U.S. government's recent wireless-spectrum auction was Verizon, having spent at least $4.7 billion and as much as $10 billion to acquire licenses nationwide. AT&T was the next highest bidder, with satellite broadcaster EchoStar the biggest of the new kids. Verizon unveiled plans to open up its wireless network to third parties yesterday, likely in anticipation of today's announcement. I have to agree with VentureBeat's MG Siegler — the real winner here is Google, which didn't have to pay a dime, but changed the terms of the contract for the eventual winner just by entering a lowball bid. Well played, Google, well played. (Photo AP/Don Ryan) -
wireless spectrum
Who are the big wireless spectrum auction winners?
The FCC's auction of the 700MHz spectrum, soon to be abandoned by analog television broadcasters, is over. Bids totaled $19.6 billion for licenses across the country. But it may be weeks until the winners are announced publicly. Among the big bidders, AT&T and Verizon are the most likely, and the most boring. Google tried to shape the debate over access to the spectrum with a promised bid, and have been acquiring infrastructure over the years. And there's a chance an unknown or three might make a splash. Valleywag is, of course, all ears at tips@valleywag.com. More » -
file sharing
Why Verizon isn't fighting file sharing
While Comcast has been trying to curtail file sharing, Verizon has taken a hands-off approach. Why? It's not because Verizon executives are free-the-Internet libertarian nutjobs. No, it's because file sharing can make them more money. The phone company partnered with peer-to-peer software startup Pando Networks to speed video downloads. When DSL customers share files with others on Verizon's network, it cuts costs 75 to 90 percent and dramatically reduces the load on Verizon's network. Before you hold up this capitalist move as an argument for network neutrality, consider this: Verizon had to share data about its network with Pando to optimize delivery of the video files. (Photo by /Mark Lennihan) -
price war
Sprint rolls out super-unlimited-everything-plan for $99
The great wireless price war of 2008 continues. The latest salvo from Sprint: A new plan, called Simply Everything, offers unlimited voice, data, SMS, email, Web, music, TV, and Nextel's push-to-talk feature — for $99. The other providers charge between $140 and $150 a month for all that stuff. An AT&T spokesman told us "we will review Sprint's offer against what our customers have told us they want and we will continue to evaluate the marketplace as we always do." Hopefully that means I can hook AT&T's version of this bad boy up with my iPhone by the end of the week — but I'm not holding my breath. (Photo by AP/Robert F. Bukaty) -
wireless
AT&T, Verizon join Sprint in offering unlimited voice plans
The great cell-phone price war of 2008 has begun. Almost 2 weeks ago, Sprint introduced a $119 unlimited voice plan in four markets (including San Francisco). Today, both Verizon and AT&T have rolled out $99 all-you-can-talk voice plans nationally, with Verizon introducing a less-than-spectacular new EVDO data plan. More » -
earnings
Who needs the iPhone? Verizon Wireless added 1.9 million customers last quarter, more than analysts had predicted. In its financials, Verizon met expectations, making $1.1 billion on $23.8 billion in sales. The company also reported broadband subscribers were up 18 percent year over year, in part because of the rollout of its Fios fiber-optic service. Verizon now has more than 1 million Fios subscribers, though higher than predicted capital expenditures — including on the Fios rollout — hurt earnings. [Wall Street Journal] -
patents
Vonage isn't just facing service issues today. It's also been revealed that Nortel countersued the Internet telephone provider over a patent dispute. That makes four big telephone companies suing Vonage for patent infringement: AT&T, Sprint Nextel, Verizon, and now Nortel. The good news: At this rate, Vonage is running out of companies to get sued by. [News.com] -
bad ideas
"Don't tase me bro" goes commercial
Andrew Meyer, a student at the University of Florida who was tasered after trying to ask John Kerry questions at a forum, got his 15 minutes of fame when millions saw video of him saying, "Don't tase me, bro!" on YouTube. If you thought it was the funniest thing you've ever seen, and you're a Verizon Wireless customer, you're in luck! You can purchase "Don't Tase Me Bro!" as your ringback tone. (A ringback tone is a short song or audio clip that plays when someone calls you. So, instead of hearing a boring "ring ring," your debt collectors and babydaddies will hear "DON'T TASE ME, BRO! ARGHH!" repeatedly. Who doesn't want that?) OK, seriously, this must be a sign of the coming apocalypse. For those who missed it, the full video of the arrest and tasing is after the jump. More » -
comcast
Comcast shares drop on lowered expectations
Has cable's golden age ended? Cable-TV subscriptions were long seen as recession-proof. But as their price continues to soar, at last, consumers are voting with their pocketbooks. Comcast shares dropped 12.3 percent Wednesday after the company lowered earnings and growth forecasts. Added competition from Verizon, satellite providers and other cable companies took most of the blame as the triple-play price war continues, driving down average revenue per customer across the industry. On top of that, capital spending is up as Comcast rolls out more HD channels and video-on-demand. We would suggest that Comcast stockholders pray for strong growth, but after the cable giant blocked the Bible, it might not be the best idea. -
mpaa
MPAA head asks ISPs to save the movie industry
Dan Glickman, head of the MPAA, is calling on Internet service providers to implement filtering to protect movies from piracy. AT&T has already announced plans to develop such a system, but there are few details. It's also not clear if Glickman has any rationale for placing the onus on ISPs, considering the law's not on his side. And yet, the prospect of holding them legally responsible for piracy on their networks is implied in his statements. More » -
wireless
Verizon calls Google's multibillion-dollar bluff
When it comes to wireless, Google is full of hot air. But Verizon Wireless has now popped Google's bubble. By next year, CEO Lowell McAdam declares, Verizon Wireless will open its network to any devices that meet its technical standards. An important note: Verizon's standards, not Google's. Google will likely squawk at this. It's complained before, specifically about Verizon, and found willing ears among Silicon Valley's hopelessly naive press corps. More » -
deathwatch
At this point, does Vonage just exist to get sued?
AT&T is taking Vonage to court over patent infringements, just like everybody else. AT&T seeks an injunction, alleging Vonage infringed on a patent related to VOIP calls on standard telephone devices. Who knew there was anything left to gain from suing Vonage? Verizon and Sprint already had their way with the company when judges ruled in their favor in two prior suits. (Photo by Torbert Timson) -
your privacy is an illusion
Shame on Verizon, it's giving away your data — for free
AT&T has taken a lot of shots for its evenings spent moonlighting as spy, but it turns out it's not the only telecom happy to hand over customer call information at the first sign of a government request. Verizon has happily supplied such information hundreds of times since 2005. But to our minds, the scandal here isn't that Verizon is volunteering to play snoop — it's that it's cheating shareholders by not charging for the privilege. Verizon is already prepping to share calling data with third parties. It wouldn't be too difficult to create a vast, for-pay resource for private investigation firms. How much would you pay to figure out who that 310 number your husband calls four times a day belongs to? Thought so. -
wireless
AT&T and Verizon cut the cell-phone bull
To avoid being gored, you don't have to outrun the bulls — you just have to outrun the other guys. That seems to be the strategy AT&T and Verizon are taking, at any rate. The telcos hope a few changes in policy are enough to hold off a sweeping regulatory bill proposed in the Senate last month. Verizon has stopped automatically renewing contracts when customers make a change to their plan and AT&T is offering prorated termination fees. The Senate has proposed a bill requiring prorated termination fees, no hidden fees not required by law, and a 30-day grace period for consumers to get out of any new contracts. An industry lobbyist says the bill is bad for consumers, natch — while the companies are marketing their changes, largely identical to lawmakers' requests, as good for consumers. Is this self-policing just bull? We're skeptical. This Congress has failed to get much done, but cell companies are oxen we'd all like to gore. (AP Photo/Alvaro Barrientos) -
digital music
Led Zeppelin is no longer "dazed and confused" by the MP3 world. It's capitalizing on a monumental one-night-only reunion by, at long last embracing song downloads — but through Verizon Wireless, not Apple's iTunes. Take it as another sign of the rising unease with Apple's dominance of digital music. The cell-phone carrier will sell full song downloads and ringtones of popular hits. The entire Zeppelin catalog and other partnerships will follow. [NYT] -
exits
Sprint Nextel board members are on the hunt for a new CEO to replace Gary Forsee. Sprint has been losing out to AT&T and Verizon in signing up new customers and recently lost the confidence of investor Ralph Whitworth, who owns almost 2 percent of the company. [WSJ] -
deathwatch
Vonage, the Internet phone service, has found itself besieged by more legal woes. A court has found it infringed on six Sprint Nextel patents, and ordered Vonage to cough up $69.5 million and a 5 percent royalty on future sales. Last March, Vonage suffered similar penalties after it was found guilty of infringing on Verizon patents. A royalty here, a royalty there, and soon you're talking serious money. [Silicon Alley Insider] -
telecom
Google's fiber-optic plans spur new phone talk
According to Australian tech trade Communications Day, Google may be planning to fund a new trans-Pacific fiber-optic cable, part of its growing in-house telecom network. (A Google rep neither confirmed nor denied the plans.) Why would Google want to lay cable on the ocean floor? Google already owns a considerable fiber network, used for in-house needs at present. But its telecom activities, which now include bidding on wireless spectrum in the United States, arouse suspicions that it might be getting into the phone business. Nonsense. More » -
wireless
Verizon doesn't like to share, suing FCC
All this talk of auctioning and the 700mhz spectrum has thrown Verizon into a tiff. It's apparently none too happy that Google and other interested parties may soon have access to the airwaves once analog television broadcasts are discontinued in early 2009. So the telecom is suing the Federal Communications Commission on the grounds that its open-access rules — that the auctioned bands be made compatible with any device — are illegal. Sounds like its afraid of some friendly competition — the freed 700Mhz band could be used for anything from new wireless phone to broadband service. (Photo by majorvols) -
serial executive
Michael Capellas has a new company to sell
If there's one thing Michael Capellas knows, it's how to make money fast. After becoming Compaq's CEO in 1999, he turned the company around — and turned around and sold it to Hewlett-Packard in 2002. Tenure as CEO? Three years. He then joined the bankrupt MCI in December2002. MCI emerged from bankruptcy in 2004, and by February 2005, Capellas sold MCI to Verizon for $7.6 billion. Tenure as CEO? Just over two years. Now, Capellas, most recently an advisor to Silver Lake Partners, was named CEO of First Data Corporation, a payment-processing company recently taken private by KKR. Tenure as CEO? At the rate he's going, Capellas still being the CEO of First Data in 2009 would be a real surprise. (Photo by Ben Baker for Fortune) -
wireless
Verizon Admits Capping EVDO, Removes "Unlimited" From Marketing
Verizon, long rumored to be capping their wireless EVDO broadband service, finally copped to capping the connection at 5GB of transfer per month. While before they used to advertise that you could have "unlimited" access, what they really meant was that you could check your email and do basic surfing, but otherwise you'd be breaking their terms of service. I guess they've finally decided to be a little more honest in their advertising, so it looks like "unlimited" is no longer a menu option. [Gizmodo]

























