Verizon, Google and the Net Neutrality Debate

Image: socialsignal.com

Hot on the tech news circuit last week was the Net Neutrality debate which is heating up as more companies begin to take sides.  If you are not familiar with what has been happening in the world of Net Neutrality, here’s a quick synopsis:

About a week ago, Google and Verizon, proposed an agreement that would seal the deal on Net Neutrality (keeping the Internet open), but it had one [not so] small catch.  In the agreement, wireless, mobile broadband would receive an exemption from Internet openness.  This has begun to spark massive debate over what would happen if this “proposal” were actually presented as a piece of legislation (this would need congressional and FCC approval and is not simply a business deal).  You can read the official agreement here. Concern has been label by some as “cable-ization” of the Internet – content that used to be all fair game and evenly accessible would be able to be pushed ahead, eliminated altogether,”premier” Internet content could be made available to those who paid more for their mobile service and certain users might receive “prioritized” content.

Anyone who has read an ounce of technology news in the last year understands that this is a very big deal.  With Smartphones making up for over 20% of the cellular industry and Wi-Fi networks appearing almost everywhere, it is safe to say that the future will be a wireless world.  I find it almost comical that wired Internet openness is protected in proposal…what a perfect distraction from what is really going on here!  Who cares so much about wired Internet when the whole world is becoming mobile?

Companies have begun to choose sides.  For example AT&T, which would obviously benefit from having more control over the content that is delivered and sold to it’s subscribers call the proposal, according to the New York Times, “a reasonable framework”.  On the flip side, companies that were born out of Internet openness like those of Facebook, were coming out not in support of the proposal.

Today the debate pot was stirred again as House Democrats “slammed” the proposal, according to PCWorld, in fact the proposal prompted Reps, Edward Markey, Anna Eshoo, Mike Doyle, and Jay Inslee to write a letter to the FCC chairman urging him to act on broadband regulation.  The letter referred to Internet doomsday prophesy such as, “closing the open Internet”, “inconsistent principals”, and creating demographics where users who need content the most would not be able to obtain it.

According to PCWorld, Richard Whitt, Washington telecom and media counsel for Google defended the proposal, stating, “No other company is working as tirelessly for an open Internet”.  That being said, the writing on the wall is very real and does present a future in which the, Internet-as-we-know-it, may suffer greatly.

For more on The Net Neutrality Debate, check out these articles:

NYT

PCWorld

Fiercebroadbandwireless.com

AT&T adds Chicago to Wi-Fi Roster

Chicago was AT&T’s third addition to it’s city Wi-Fi hotspot project.  In an effort to offload data from 3G to Wi-Fi, AT&T has recently deployed Wi-Fi networks in Charlotte, N.C. and Times Square, N.Y.  AT&T “Hotzones” are for the use of AT&T subscribers only and are free of charge.  After more than a year of reporting on the problems that 3G is going to face keeping up with the onslaught of high data usage devices, AT&T is answering subscribers call with the city “Hotzones” and Wi-Fi service in commercial businesses such as McDonalds and Starbucks.

This addition to Wi-Fi Hotzones comes on the tail of AT&T recent quarterly Wi-Fi usage report that 121.2 million Wi-Fi connections have been made at AT&T Hotzones in the first half of the year.  AT&T has labeled Wi-Fi as a “must-have amenity”.

Legal Jailbreak for iPhone Users

According to the NYT, The Library of Congress announced today, that it is legal for smartphone users to alter phone software to allow for use of applications that may not have been approved by the software’s manufacturer (as long as the software, itself, is obtained legally).  This process, most commonly know as “jailbreaking” is a method most commonly used by iPhone users.  Apple runs a tight ship when it comes to approving applications for use on it’s devices and often denies approval of applications that many would find to be very useful, citing copyright infrigement (due to the use of altered iPhone software), security issues, the need for more customer support and lowered quality of the device.

The Times quoted Apple spokeswoman, Natalie Kerris, as stating:

Apple’s goal has always been to ensure that our customers have a great experience with their iPhone, and we know that jailbreaking can severely degrade the experience…As we’ve said before, the vast majority of customers do not jailbreak their iPhones, as this can violate the warranty and can cause the iPhone to become unstable and not work reliably.

The ruling comes as a huge victory to the independent application development industry.  Many developers spend large amounts of time and money developing applications for the iPhone, only to have the apps rejected.  Tech savvy iPhone users now have the freedom to legally experiment with the iPhone software and use applications that are outside of Apple’s realm of approved apps.  Many users simply see this as a right that they already had being officially supported.  In fact, Apple’s notoriously tight control and secrecy in regards to it’s products has brought scrutiny upon the company as many iPhone users see tinkering with their iPhone to run applications as the same as tinkering with their computer software to customize it.

I predict this ruling will actually help Apple who has had a ton of publicity (both positive and negative)  in the last year beginning with the stolen iPhone 4, the release of the iPad and it’s subsequent issues and then the iPhone 4.  Techies who have in the past rebelled against Apple because of it’ s restrictions, might to choose to ease up on their judgment and who knows, it may even boost sales.  That being said,  PCWorld accurately points out that: the legal support behind jailbreaking your iPhone does not change the fact that your phone may encounter stability issues, upgrading issues and most importantly, in the eyes of Apple, “jailbreaking” will void your warranty (which is, of course, still in Apple’s control).

AT&T Wi-Fi report proof of mobile users reliance on Wi-Fi

Image Courtesy: iphonefaqs.com

By now you have probably already read (and if not, be prepared to be impressed) about AT&T’s quarterly Wi-Fi usage report, which boasts 121.2 million connections made in the first half of 2010. Compare that number to AT&T’s 85.5 million connections in the entire year of 2009 and only 20 million connections made in 2008 and you get one impressive increase in users making Wi-Fi connections. AT&T’s press release gives credit to both the increase in smartphone users and the increase in AT&T “hotzones”, which according to WiFiNetNews.com is primarily due to the free Wi-Fi at McDonald’s, powered by AT&T. According to WiFiNetNews.com McDonalds and Starbucks “represent about 19,000 of AT&T’s “more than 20,000″ locations. AT&T’s release also speaks of the mobile device user’s reliance on mobile broadband as well as the importance of businesses providing free Wi-Fi to their residents, customers, guests, etc. AT&T referred to Wi-Fi as a “must-have amenity” to hotel guests. We have been saying exactly that for a long time. AT&T backed up the “must-have” amenity statement with mention of their recent deal with Hilton Worldwide to deploy Wi-Fi networks at 3200 Hilton properties . The Wi-Fi Revolution™ has arrived and it is only going to get bigger. The modern mobile device user simply needs broadband connectivity to not only accomplish everyday tasks (such as work, play, social networking, email, etc) but to take full advantage ofthe the range of their mobile device. Many device applications are designed for Wi-Fi use only. 3G simply doesn’t cut it anymore – AT&T’s sheer increase in connections over the past 2 years are a testament to that. Read the AT&T release here. Wi-Fi connectivity is a “must-have” amenity – We will enhance your property, business, building, etc. with a custom designed Wi-Fi network tailored to the needs of your property. Contact sales today.

Obama works to add broadband spectrum for commercial use

According to the New York Times, President Obama will sign, today, a memorandum that will allow for 500 megahertz of broadband spectrum to be auctioned off.  The majority of spectrum will be available for commercial use – this addition spectrum will almost double what is currently available and is a necessary addition given the prediction of expected mobile device usage in the coming years.

Some of the plan, which will allow for the freeing up of spectrum which is owned by both the government and private companies, will need to be approved by Congress.  The plan comes in the wake of a March recommendation by the FCC in its “National Broadband Plan”.

Read the NYT article

AT&T & Apple face lawsuits over data cap on iPad

Image Courtesy: http://bits.blogs.nytimes.com/

iPad consumers are angered over AT&T’s new rate plans and the impact that they will have on iPad users.  AT&T’s new plans, which went into effect on June 7th, coordinating with the release of iPhone 4, no longer offer unlimited data.  For the new plan details, click here.   AT&T advertised that iPad users would have the ability to easily be able to opt in or out of unlimited data plans.  While, AT&T is allowing iPad users to keep unlimited data for now, if they skip a month, they will no longer be able go back to having unlimited data.

AT&T’s announcement of their new plans came very quickly after the release release of the 3G enabled iPad (which had previously only been available with Wi-Fi capability).  Consumers feel as though they have been tricked into either waiting to purchase the 3G iPad or trading in/ upgrading their Wi-Fi only iPad to the 3G version – only to find out that there are now data caps on the plans.  One customer was quoted on fiercebroadbandwireless.com as saying:

I originally purchased a standard iPad. Three weeks later, I returned it to the Apple store, paying an additional $130 plus sales tax to upgrade to an iPad with 3G capability. I thought the iPad 3G was worth the additional money because, with the unlimited data plan, I could work outside my office or home and access all the data I needed for a fixed, monthly price,” commented plaintiff Adam Weisblatt in a release distributed by law firm Lieff Cabraser Heimann & Bernstein. “But I also knew that for several months each year, with my schedule, a lesser expensive, limited data plan was sufficient. I would have never purchased a 3G-capable iPad if I knew Apple and AT&T were planning on suddenly taking away from me the freedom to opt in and out of an unlimited data plan at my choice.

The cellular companies have long been scrutinized for sucking consumers into long term contracts with large cancellation penalties, making new offers available only to those willing to sign more contracts and charging huge overage and equipment charges.  It seems, however, that the data plan caps have sent consumers over the edge.  The lawsuit being filed claims that AT&T and Apple used a “bait and switch” tactic that tricked consumers into purchasing the 3G capable iPad.  iPad users frustration is understandable, especially since both AT&T and Apple advertised the 3G enabled iPad as having a easy to use unlimited data option for so long and then switched the plan so soon after the 3G iPad release.

We will keep you posted on this situation as it unfolds!

AT&T femtocell service is included in new data usage limits

This is just mind boggling to me:

We wrote about the AT&T femtocell awhile back.  AT&T’s femtocell, the “Microcell”, is a mini-tower that can allow up to 10 AT&T phones to get 3G signal (four at once) – the devices covers 5000 sq. ft.   The femtocell comes at a one-time cost of $150 dollars and for $20/ month you can recieve unlimited calling over the femtocell.  Some were assuming that usage over the femtocell would not be included in the newly imposed data usage caps that have begun by AT&T and other cell carriers.  However, that is not the case.  Data usage over the femtocell WILL count against data caps.

In a DSL article, AT&T spokesman, Seth Bloom, speaks to AT&T preference of Wi-Fi for offloading data:

3G MicroCell is primarily intended to enhance the voice call quality experience in your home. While it can carry mobile data traffic, that’s not the primary solution it provides. WiFi is the optimal solution for home mobile data use. We encourage people to take advantage of Wi-Fi capabilities – that’s why all of our smartphones include WiFi radios, and usage on WiFi doesn’t count against your mobile data usage bucket.

Wait.  Stop right there.  Let’s go back to how this all works.  The Microcell (AT&T’s femtocell) routes both calling and data over the same broadband connection that is used by Wi-Fi, so why would the user be charged not only for minutes usage but for data usage as well when the data is utilizing the customers already-paid-for broadband connection?  AT&T’s justification here makes absolutely no sense and is upsetting alot of people, which I am surprised that AT&T is willing to do after all of the frustration subscribers have experienced over the 3G network and the added anger that came with the announcements of Microcell pricing.

DSL reports on how “AT&T tries, fails to justify 3G cap-eating Microcell”.  We agree with DSL that most people would probably elect to use their Wi-Fi connection when in the home over using the Microcell, however, that really is not the point.  Quite simply, AT&T is squeezing every possible dollar out of the consumer and this is just to get service to be satisfactory.  And, as it is with the Microcell, you are routing calls over the broadband service that you are already paying for.  So, in addition to being charged for the equipment ($150) and being charged a $20 “unlimited” calling fee (which does not include data) you are in essence being re-charged for your broadband (in some instances by a company which does not even supply your broadband service).  It really is ludicrious when you think about it.  We also must remember that the Microcell is a piece of hardware that benefits the cell carrier – you are doing them a favor by having it.  DSL said it well:

Consider these are users shelling out for a home broadband connection, a wireless 3G and data connection, possibly an added landline connection, the upfront cost of hardware, and an additional $20 if they want unlimited voice that doesn’t eat away at their minutes. Just how much are we expecting the average consumer to pay per month for simple, regular-use voice and data connectivity?Either AT&T’s gunning to make an additional few million annually in revenue off of those incapable of differentiating between 3G and Wi-Fi, or they’re incapable of getting the Wi-Fi/3G femtocell billing straightened out and don’t want to admit it.

Read more about data caps over the Microcell from fiercebroadbandwireless.com.

Starbucks to offer Free Wi-Fi at all locations

Image Courtesy: Starbucks.com

Beginning on July 1st, Starbucks will be offering Wi-Fi as a free amenity at all Starbucks owned stores (this does not include affilate stores – like the one you would find in Target, for example).

Currently, Starbucks offers Wi-Fi in their stores, however you must register your Starbucks card, create a user name and password and then you can receive 2 consecutive hours of complimentary Wi-Fi from AT&T.  Read more about the changes that Starbucks is making to their Wi-Fi business model, including access to news content such as Zagats and The Wall Street Journal.

Complimentary Wi-Fi access is now more important than ever.  With the major cellular companies no longer offering unlimited data on their service plans, offloading data is essential to a user’s connectivity and will become even more-so, as data usage will only go up in the future.  Not to mention- some applications for devices, such as the iPad, are designed ONLY for operation over Wi-Fi, as designers have found 3G to slow and unreliable.

These changes show that Starbucks “gets it” on a few levels.  Consumers are begining to expect Wi-Fi service as a free amenity.  Wi-Fi is kind of like the “rebel service” – it gives us the power to remain connected, while forgoing the phone company, the cable company, etc.  Starbucks must have come to realize that if I can’t sit in a Starbucks and access free Wi-Fi in a simple, non-intrusive manner, then I can always scoot over to McDonalds, use their Free Wi-Fi, and grab a coffee there (their coffee is surprisingly good).

It’s not only the “free” that people expect – but they don’t want to have to register a card, provide their personal information and have a restriction on their usage.  So, for a company that thrives on customers not only coming in for coffee, but coming in, sitting down and having that “home-away-from-home” experience, Wi-Fi as a free amenity is a necessity, at this point.

Spot On Networks has long understood the importance of Wi-Fi as an amenity to restaurants, hotels, apartment buildings and condo complexes.  Spot On Networks has contracted with residential property developers throughout the United States to provide managed High-Speed Wireless Internet Access in residential multi-family dwelling complexes, hotels, restaurants, etc.  This makes us the largest provider of high speed Wi-Fi internet to the United States multi-family housing market.  Need information about deploying a custom Wi-Fi network at your property?  Click here.

Google to surrender data collected over unsecured networks

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The New York Times reported today that, despite earlier refusals, Google has now agreed to turn over data that was collected from unsecured Wi-Fi networks while taking snapshots for Google Street View.  Google CEO, Eric Schmidt, will share the collected personal data with officials in Germany, Spain and France.  The data collected over unsecured networks is said to contain snapshots of personal information including emails, bank account numbers, etc.  Schmidt said in a Thursday interview in London, that he also plans to “make public the results of internal and external audits of its Wi-Fi data collection practices” (NYT).

Despite the European outrage over the Wi-Fi data collection issue, the U.S. seems to be a lot less disgruntled over the situation.  While the FCC is taking a look at the issue, there is an obvious difference in the reaction of the U.S.  There have been a few lawsuits filed against Google in the U.S., with one judge in Oregon in giving Google 10 days (from 6/3) to hand over data collected over unsecured Wi-Fi networks.  However, the U.S does seem considerably less upset with Google, from an official standpoint.

From all bad, however, comes good and I think that it is important to look at what we have learned from the Google situation.  Wi-Fi network security is extreamly important.  I can pick up at least one unsecured network from one of my Wi-Fi enabled devices, most of the time.  Free “hotspots” in cafes, stores and even hotels can be unsecure and not properly monitored.  Not only is Wi-Fi networks security important to protect our personal data, but it has also become important as goverments find it necessary to begin to create laws and issue levels of responsibility to owners and operators of Wi-Fi networks.

Look at Germany, for example.  They recently passed litigation that will hold operators of unsecured Wi-Fi networks responsible for what occurs on that network (such as illegal downloading).  Take CALEA (Communications Assistance for Law Enforcement Act – read more) in the U.S.  This law places an enormous amount of responsibility on the owners/ operators of Wi-Fi networks.  So as Wi-Fi becomes the primary use for telecommunication and mobile networking, goverments are going to tighten up restrictions on what is acceptable and what network security is necessary.  So, not only is in important to protect our personal information, but network owners and operators of Wi-Fi hotspots need to be concerned about security as well.

Spot On’s Wi-Fi networks use the highest standards of security to protect your personal information.  So, a situation like Google StreetView sniffing personal data cannot happen with Spot On’s network.  On our network, we do not allow a computer to talk to another computer.  In the instance of StreetView – a personal computer, over an unsecured Wi-Fi network had the ability to talk to the StreetView car – on a Spot On Network, the user computer can talk to the Internet, but is blocked from being able to talk to another computer… thus, information over our Wi-Fi network can never be sniffed out.  Read more about our security.

As for owners and operators of Wi-Fi hotspots – we urge you to become familiar with CALEA and what it means for your level of responsibility.  If you are self-operating a Wi-Fi networks, that is, you have a router and are offering Wi-Fi as amenity… you need to be aware of your responsibility for what occurs over your network and who accesses your networks.  Spot On Wi-Fi networks take that responsibility off our your back.  We are fully CALEA Compliant and monitor our network so that your Wi-Fi network is legal.  Not sure if you are CALEA Compliant?  Contact us for more information and we can help to access the security of your Wi-Fi network, whether you are a small cafe offering free Wi-Fi for a large-scale high-rise apartment building.

All in all, we can learn a lot from the Google situation – it is important that we are aware and responsibile for the security of our Wi-Fi networks, not only for our personal networks – but for when we are providing Wi-Fi for others.

More on AT&T stops unlimited data usage…

Image Courtesy: boston.com

…and the news keeps pouring in!

As we reported earlier today, this morning AT&T announced it’s plans to stop offering unlimited data plans as an option for their smartphone, iPhone and iPad users.  The New York Times is citing the data gridlock experienced over AT&T’s 3G network as the major reason for the plan changes (which we all saw coming).  The plan changes are going to come in the form of two new plans, DataPlus (200 MB – $15/ month) and DataPro (2GB – $25/ month) – with the added option of tethering for DataPro customers ($20/ month).

Earlier reports of the plan changes had AT&T claiming that these changes would not really affect AT&T subscribers, as only 98% of subscribers use over 2GB.  So…. we are all sitting here asking ourselves “Why the big change, then?”.  At least the NYT got it right when they focused on data gridlock as the major cause behind these changes.  This is one of many AT&T attempts dissuade subscribers from high data usage over the 3G network.  Last week saw AT&T’s announcement that subscribers would now be able to access free Wi-Fi in Times Square (one of the areas that experience huge data traffic problems.  Here’s my question: If AT&T says no longer offering unlimited data will only really affect less than 2% of subscribers – how is it going to help their data gridlock issue?  If we are to believe that what AT&T is saying is true – we will have to believe that the majority of subscribers will be using the same amount of data – therefore not affecting the data gridlock issue at all.

Subscribers will have the option of grandfathering into their existing unlimited data plan – but, again, the new tethering feature will only be available to DataPro subscribers.  So, simply – no new plan = no tethering.

The New York Times predicts that this recent announcement by AT&T is just the beginning and that putting a cap on data usage will be picked up by other carriers in the cellular industry.

Here are some user comments from Boston.com reporting on the AT&T plan changes:

Have fun Iphone users. If you think you’re not going to go over the minimum cap you’re fooling yourselves. This should be interesting when the numbers start to be revealed and the uproar that will come with it. Ha! – Casa

So it’s official… Once my contract is up I’m switching from my Iphone to an Android phone. Thanks Apple for changing the smartphone game, but others have caught up. Just look at the HTC Incredible on Verizon for example – wintyb

It’s funny to me that AT&T is justifying the plan change due to “congestion” in heavily concentrated areas of iPhone users. Yet, they are not changing the plan for existing users. So, unless they think the existing users are going to start using their phones less, how does this “fix” the problem as opposed to just fleecing new users?

Maybe the intent is to deter new users from getting iPhones so that the congestion levels stay consistent. Way to attract more users AT&T.

They know the phones are getting cheaper so more people will be signing up and they found a way to get more money out of them…

Let’s see if they get vilified like Verizon did – cmv1971