A new white paper written by the National Digital Inclusion Alliance finds that AT&T and Verizon are selling slow DSL internet to tens of millions of customers for the same price as fiber customers. These customers have no choice but to pay the rate AT&T and Verizon give them because no other service is offered in their area. Ars Technica reports: AT&T has been charging $60 a month to DSL customers for service between 6 and 10Mbps downstream and 0.6Mbps to 1Mbps upstream, the white paper notes, citing AT&T's advertised prices from July 2018. AT&T also charges $60 a month for 50Mbps and 75Mbps download tiers and even for fiber service with symmetrical upload and download speeds of 100Mbps. These are the regular rates after first-year discounts end, before any extra fees and taxes. Verizon similarly charges $65 a month for 100Mbps fiber service (including a $10 router charge), and $63 or $64 a month for DSL service that provides download speeds between 1.5Mbps and 15Mbps, the white paper says. The price is this high partly "because Verizon ADSL service at any speed requires paying separately for a landline telephone account." [...] The NDIA calls the practice of charging identical prices for wildly different speeds "tier flattening." It affects both urban and rural customers who live in areas where AT&T and Verizon haven't upgraded networks because they face no competition, because the upgrades wouldn't result in higher profits, or both. These customers end up using "the oldest, slowest legacy infrastructure," while paying much higher per-megabit prices than other Internet users.

The Justice Department will appeal the AT&T-Time Warner merger approval, according to a court document filed Thursday. In one of the largest U.S. antitrust cases in decades, U.S. District Judge Richard Leon ruled last month that the merger could go on despite the government's resistance. The feds did not seek a stay that would have prevented the merger from taking place, and AT&T and Time Warner closed the deal directly after Leon's ruling.

AT&T recently acquired HBO, as part of the Time Warner acquisition, "and it is already considering an overhaul that would see HBO produce more video that can compete for the attention of smartphone users," reports Ars Technica. "AT&T wants to boost revenue both in advertising and subscriptions, even if that means upending HBO's longtime strategy of producing a relatively small number of high-quality shows."

At a recent corporate town hall meeting, John Stankey, the longtime AT&T executive and new head of Warner Media, laid out the challenges and opportunities he saw for the network to around 150 employees. He said, in part: "It's going to be a tough year. It's going to be a lot of work to alter and change direction a little bit. [...] You will work very hard, and this next year will -- my wife hates it when I say this -- feel like childbirth... You'll look back on it and be very fond of it, but it's not going to feel great while you're in the middle of it. She says, 'What do you know about this?' I just observe, 'Honey. We love our kids.'" Audio of the meeting was obtained by The New York Times. From the report: The talk, held at HBO headquarters in New York City, was hosted by HBO CEO Richard Plepler. HBO must compete with smartphones for people's attention, Stankey said in this exchange with Plepler: "We need hours a day," Mr. Stankey said, referring to the time viewers spend watching HBO programs. "It's not hours a week, and it's not hours a month. We need hours a day. You are competing with devices that sit in people's hands that capture their attention every 15 minutes." Continuing the theme, he added: "I want more hours of engagement. Why are more hours of engagement important? Because you get more data and information about a customer that then allows you to do things like monetize through alternate models of advertising as well as subscriptions, which I think is very important to play in tomorrow's world."

Less than a month after AT&T completed its $85 billion acquisition of Time Warner, the company is raising the base price of its DirecTV Now streaming service by $5 per month. This comes after promising in court that its acquisition would lover TV prices. Ars Technica reports: AT&T confirmed the price increase to Ars and said it began informing customers of the increase this past weekend. "The $5 increase will go into effect July 26 for new customers and varies for existing customers based on their billing date," an AT&T spokesperson said. The $5 increase will affect all DirecTV Now tiers except for a Spanish-language TV package, AT&T told Ars. That means the DirecTV Now packages that currently cost $35, $50, $60, and $70 a month will go up to $40, $55, $65, and $75. "To continue delivering the best possible streaming experience for both new and existing customers, we're bringing the cost of this service in line with the market -- which starts at a $40 price point," AT&T said.

In a court filing, trying to convince the Justice Department that its acquisition would be good for consumers, AT&T had this to say: "The evidence overwhelmingly showed that this merger is likely to enhance competition substantially, because it will enable the merged company to reduce prices, offer innovative video products, and compete more effectively against the increasingly powerful, vertically integrated 'FAANG' [Facebook, Apple, Amazon, Netflix, and Google] companies," AT&T told U.S. District Judge Richard Leon in the brief.

AT&T has been fined $5.25 million for an outage last year that resulted in 12,000 callers not being able to reach 911. The FCC's Enforcement Bureau made the announcement on Thursday, stating that "such preventable outages are unacceptable." Gizmodo reports: Aside from the fine -- which is really a drop in the bucket for the billion-dollar behemoth -- AT&T must also make changes and enhancements to its systems to mitigate and soften the blow of future outages, as well as "regularly file compliance reports with the FCC." According to FCC rules, AT&T was required to "transmit all wireless 911 calls" as well as let emergency call centers know about outages if they last longer than 30 minutes. The two AT&T 911 outages investigated by the FCC, which occurred on March 8 and May 1 of 2017, lasted about five hours and 47 minutes, respectively. Around 12,600 users were unable to complete 911 calls during the March outage, with 2,600 failed 911 calls during the May outage.

AT&T revamped its two unlimited mobile plans this week, and in the process it raised the price for the entry-level plan by $5 a month while removing the free HBO perk. The entry-level unlimited plan now starts at $70 instead of $65. ArsTechnica adds: Existing customers can keep their old plan and the free HBO, but new customers or those who switch plans will have to buy the more expensive unlimited plan to get HBO at no added cost. AT&T did add some video options to both plans, however. Both unlimited plans get AT&T's new "WatchTV" streaming service that comes with more than 30 channels, and buyers of the more expensive unlimited plan can choose to get HBO or another premium add-on. While "HBO is no longer included on the lower-priced plan," "customers who remain on their existing plan won't see any change and will keep the HBO benefit for as long as they remain on their current plan," AT&T told Ars. Further reading: AT&T Is Screwing Customers By Almost Tripling a Bogus Fee.

AT&T has almost tripled the cost of the "Administrative Fee" featured in its wireless service bills. "Up until early this year, that 'fee' was typically assessed at $0.76 per postpaid line -- not nothing, but over the course of two years of service, it ends up being a little over $18," reports Android Police. From the report: Most recently, subscribers getting their statements for June are finding an Administrative Fee charge of $1.99 per line every month. That brings the two-year cost of this "administrative fee" to almost $50 for each line on your account. The fee was raised earlier this year incrementally in March (by $0.54), but this new hike comes just three months after the first one, and it's not even clear why.

AT&T is likely hoping subscribers just won't notice their per-line bill is going up $1.23 a month versus where it was a few months ago, and in the process, could net almost a billion dollars in additional revenue according to one analyst. This could allow AT&T to finance up to $10 billion in new debt to expand its ever-broadening media empire. The fee is being assessed against all postpaid subscribers, regardless of their service plan or any grandfathering. AT&T says the fee is related to its cost of doing business, in terms of interconnect fees with other operators and cell site rents.

News outlet The Intercept on Monday published a report that reveals eight AT&T-owned locations: two in California, one in Washington, another in Washington, D.C., one in New York, one in Texas, one in Illinois, and one in Georgia, that serve as backbone or "peering" facilities that the NSA has secretly been using for eavesdropping purposes. Spokespeople of AT&T, which refers to the aforementioned peering sites as "Service Node Routing Complexes", and NSA, could neither confirm or deny the report's findings. From the report: The NSA considers AT&T to be one of its most trusted partners and has lauded the company's "extreme willingness to help." It is a collaboration that dates back decades. Little known, however, is that its scope is not restricted to AT&T's customers. According to the NSA's documents, it values AT&T not only because it "has access to information that transits the nation," but also because it maintains unique relationships with other phone and internet providers. The NSA exploits these relationships for surveillance purposes, commandeering AT&T's massive infrastructure and using it as a platform to covertly tap into communications processed by other companies.

[...] While network operators would usually prefer to send data through their own networks, often a more direct and cost-efficient path is provided by other providers' infrastructure. If one network in a specific area of the country is overloaded with data traffic, another operator with capacity to spare can sell or exchange bandwidth, reducing the strain on the congested region. This exchange of traffic is called "peering" and is an essential feature of the internet.

Because of AT&T's position as one of the U.S.'s leading telecommunications companies, it has a large network that is frequently used by other providers to transport their customers' data. Companies that "peer" with AT&T include the American telecommunications giants Sprint, Cogent Communications, and Level 3, as well as foreign companies such as Sweden's Telia, India's Tata Communications, Italy's Telecom Italia, and Germany's Deutsche Telekom.

AT&T is launching a new streaming service incorporating television networks from the Time Warner company it just bought. From a report: The WatchTV service, a cable-like package of more than 30 TV channels delivered over the internet, is an example of the "skinny bundles" coming from telecom and broadband providers as more people watch TV online. Competitors include Sling TV, PlayStation Vue and AT&T's own DirecTV Now. WatchTV will be free for subscribers of two unlimited wireless plans AT&T is launching. Others can get WatchTV for $15 -- $20 less than DirecTV Now, but with just half the channels.

A Democratic assemblyman with financial ties to AT&T has gutted a new law that would serve as a gold standard for true net neutrality protection across the country. The bill SB 822 is expected to be voted on by the California State Assembly Communications and Conveyance committee on Wednesday, where it would go to the state assembly for a full vote, at which point it would become law if it passes. "But late Tuesday evening, Miguel Santiago, a California assemblyman and chair of the Communications and Conveyance committee, edited the bill to allow for gaping loopholes that benefit the telecommunications industry and make the net neutrality legislation toothless," reports Mashable. From the report: If Santiago doesn't remove his amendments, he would be the first California Democrat to side with the Trump administration to actively destroy net neutrality, according to Fight for the Future (an internet freedoms advocacy organization). Specifically, the amendments undermine net neutrality in a few ways. First, they would allow ISPs to charge any website a fee for people to be able to access it.

Next, they would give some content (such as content owned by the provider) preferential treatment on cellular data. That means that some content would eat up cellular data, while others would be free or less impactful to access. There's a high likelihood that privileged content would be created by the network's parent company, since so many telecoms companies like Comcast and, recently, AT&T, now both own the actual content, and the way it's distributed. This loophole makes it likely that people wary about using up the data that they pay for would opt for the content privileged by their telecoms provider, which undermines consumer choice. And finally, Santiago's edits allow for throttling, which means intentionally slowing down content, but with a twist: Instead of slowing down the connection to consumer devices, the data is slowed at the website or service side, affecting everyone trying to access it.

According to documents filed Monday, T-Mobile and Sprint have formally asked the FCC to approve their proposed merger. Axios reports: In their filing, the companies said that the deal would "generate substantial public interest benefits for the customers of T-Mobile and Sprint and for U.S. wireless customers as a whole, and do not give rise to any competitive harms." "The merger unlocks the door to new broadband choices and capabilities for consumers across the country while accelerating the arrival of transformative 5G services that will produce innovation, jobs, and economic growth for our country," the companies said. Basically, the two companies have to prove to the FCC that the deal benefits consumers, and avoid antitrust concerns currently being investigated by the Department of Justice.

AT&T completed its $85 billion purchase of Time Warner yesterday and we're already starting to see some exclusive deals offered to its customers. CNBC reports that the company "will be launching a 'very, very skinny bundle' of television programming free to its mobile customers." From the report: "We will be launching, and you're going to hear more about this next week, a product called 'AT&T Watch TV,'" Chairman and CEO Randall Stephenson said on CNBC's "Squawk Box." "It will be the Turner content. It will not have sports. It'll be entertainment-centered." AT&T's unlimited wireless customers will get the service for free, Stephenson said, "or you can buy it for $15 a month on any platform." The service will be ad-supported, and AT&T will be ramping up an advertising platform, he said. He added that the company expects in coming weeks to make smaller acquisitions to enable those ad efforts. CNBC is also reporting that Time Warner is changing its name to WarnerMedia, and Turner Broadcasting CEO John Martin is departing the company.

An anonymous reader quotes a report from The Verge: As data-sharing scandals continue to mount, a new proposal in California offers a potential solution: the California Consumer Privacy Act would require companies to disclose the types of information they collect, like data used to target ads, and allow the public to opt out of having their information sold. Now, some of tech's most prominent companies are pouring millions of dollars into an effort to to kill the proposal.

In recent weeks, Amazon, Microsoft, and Uber have all made substantial contributions to a group campaigning against the initiative, according to state disclosure records. The $195,000 contributions from Amazon and Microsoft, as well as $50,000 from Uber, are only the latest: Facebook, Google, AT&T, and Verizon have each contributed $200,000 to block the measure, while other telecom and advertising groups have also poured money into the opposition group. After Mark Zuckerberg was grilled on privacy during congressional hearings, Facebook said it would no longer support the group. Google did not back down, and the more recent contributions suggest other companies will continue fighting the measure.

AT&T on Thursday evening said that it has completed its $85 billion purchase of Time Warner, just two days after a judge ruled that the deal, originally announced two years ago, could proceed over objections from U.S. antitrust regulators. From a report: The Department of Justice did not file for an emergency stay of the judge's ruling, per the judge's request, but still reserves the right to appeal. In a statement, Randall Stephenson, chairman and chief executive of AT&T said moving forward his company will bring a fresh approach to how the media and entertainment industry works for consumers, content creators, distributors and advertisers. "The content and creative talent at Warner Bros., HBO and Turner are first-rate. Combine all that with AT&T's strengths in direct-to-consumer distribution, and we offer customers a differentiated, high-quality, mobile-first entertainment experience," he said.

Following the recent official repeal of net neutrality and approval of AT&T's acquisition of Time Warner, an anonymous reader shares an excerpt from a report via TechCrunch, written by Danny Crichton. Crichton discusses the options Alphabet, Netflix and other video streaming services have on how to respond: For Alphabet, that will likely mean a redoubling of its commitment to Google Fiber. That service has been trumpeted since its debut, but has faced cutbacks in recent years in order to scale back its original ambitions. That has meant that cities like Atlanta, which have held out for the promise of cheap and reliable gigabit bandwidth, have been left in something of a lurch. Ultimately, Alphabet's strategic advantage against Comcast, AT&T and other massive ISPs is going to rest on a sort of mutually assured destruction. If Comcast throttles YouTube, then Alphabet can propose launching in a critical (read: lucrative) Comcast market. Further investment in Fiber, Project Fi or perhaps a 5G-centered wireless strategy will be required to give it to the leverage to bring those negotiations to a better outcome.

For Netflix, it is going to have to get into the connectivity game one way or the other. Contracts with carriers like Comcast and AT&T are going to be more challenging to negotiate in light of today's ruling and the additional power they have over throttling. Netflix does have some must-see shows, which gives it a bit of leverage, but so do the ISPs. They are going to have to do an end-run around the distributors to give them similar leverage to what Alphabet has up its sleeve. One interesting dynamic I could see forthcoming would be Alphabet creating strategic partnerships with companies like Netflix, Twitch and others to negotiate as a collective against ISPs. While all these services are at some level competitors, they also face an existential threat from these new, vertically merged ISPs. That might be the best of all worlds given the shit sandwich we have all been handed this week.

A federal judge said Tuesday that AT&T's $85.4 billion purchase of Time Warner is legal, clearing the path for a deal that gives the pay-TV provider ownership of cable channels such as HBO and CNN as well as film studio Warner Bros. From a report: U.S. District Judge Richard Leon announced his decision in a packed courtroom, ruling that antitrust enforcers at the Justice Department had not proven their case against the merger. The decision, in one of the biggest antitrust cases in decades, is a milestone victory for AT&T as it looks to reposition itself in a rapidly evolving media landscape. Its deal for Time Warner, valued at roughly $80 billion, has been pending since October 2016. The acquisition means AT&T will be the nation's top pay-TV distributor, through its ownership of DirecTV, as well as the owner of some of the country's most sought-after channels: Time Warner's Turner networks -- including CNN, TBS and TNT -- as well as HBO, the most popular U.S. premium network.

AT&T has given up its years-long quest to cripple the Federal Trade Commission's authority to regulate broadband providers. "Just weeks ago, AT&T said it intended to appeal its loss in the case to the U.S. Supreme Court before a deadline of May 29," reports Ars Technica. "But today, AT&T informed (PDF) court officials that it has decided not to file a petition to the Supreme Court and did not ask for a deadline extension." From the report: AT&T had been trying to limit the FTC's authority since October 2014, when the FTC sued AT&T for promising unlimited data to wireless customers and then throttling their speeds by as much as 90 percent. With AT&T having ruled out a Supreme Court appeal, the FTC can finally pursue its case against AT&T and try to secure refunds for affected customers. AT&T's decision also means that traditional phone companies will have to face some net neutrality oversight from the FTC after the Federal Communications Commission finalizes its net neutrality repeal. AT&T said it will try to settle the case with the FTC instead of going to trial. AT&T's decision might indicate that it is already having settlement talks with the agency.

"We have decided not to seek review by the Supreme Court, to focus instead on negotiating a fair resolution of the case with the Federal Trade Commission," AT&T said in a statement to Ars. The FTC is barred from regulating common carriers, and AT&T has long been a common carrier for its mobile voice and landline phone services. AT&T previously argued that the FTC can't regulate any product offered by AT&T, whether it is or isn't a common carrier service. Though ultimately unsuccessful, AT&T's attempt to deny the FTC's authority to regulate any aspect of its business has delayed the throttling case for years.

An anonymous reader writes: Speed isn't everything, or is it? According to a report from Ars Technica, the National Advertising Division (NAD) says T-Mobile should stop claiming that is has "America's Best Unlimited Network" because it needs to prove it also has the widest geographic coverage and best reliability. T-Mobile is saying that speed outweighs all other factors.

"T-Mobile's claim is based on data from Ookla and OpenSignal, which offer speed-testing apps that let consumers test their wireless data speeds," reports Ars Technica. "Both Ookla and OpenSignal have issued reports saying that T-Mobile's speeds were higher than Verizon's, AT&T's, and Sprint's. The OpenSignal tests also gave T-Mobile an edge over rivals in latency and 4G signal availability." T-Mobile "did not provide evidence that its network is superior in providing talk and text mobile services or in providing high-speed data more reliably or to a greater coverage area," the industry group's announcement said.

It's been almost a year since RED, a company known for its high-end $10,000+ cameras, teased a smartphone called the RED Hydrogen One. Several months have passed since the phone was announced and we still don't know much about it, aside from it having a very industrial design and "Hydrogen holographic display." Earlier this week, AT&T and Verizon confirmed that they'll launch the device later this year. Now, The Verge's Dieter Bohn has shared his hands-on impressions with the device, which he claims to be "one of the most ambitious smartphones in years from a company not named Apple, Google, or Samsung." Here's an excerpt from the report: The company better known for high-end 4K cameras with names like "Weapon" and "Epic-w" isn't entering the smartphone game simply to sell you a better Android phone. No, this phone is meant to be one piece of a modular system of cameras and other media creation equipment -- the company claims it will be "the foundation of a future multi-dimensional media system." To that end, it has a big set of pogo-pins on the back to connect it to RED's other cameras also to allow users to attach (forthcoming) modules to it, including lens mounts. If it were just a modular smartphone, we'd be talking about whether we really expected the company to produce enough modules to support it.

RED is planning on starting with a module that is essentially a huge camera sensor -- the company is not ready to give exact details, but the plan is definitely more towards DSLR size than smartphone size. Then, according to CEO Jim Jannard, the company wants any traditional big camera lens to be attached to it. Answering a fan question, he joked that support for lenses will be "pretty limited," working "just" with Fuji, Canon, Nikon, Leica, and more. [...] The processor inside will be a slightly-out-of-date Qualcomm Snapdragon 835, but it seemed fast enough in the few demos I was able to try. Honestly, though, if you're looking to get this thing just as a phone, you're probably making your decision based on the wrong metrics. It's probably going to be a perfectly capable phone, but at this price (starting at $1,195) what you're buying into is the module ecosystem.

On Sunday, T-Mobile and Sprint said that they have agreed to a $26.5 billion merger, creating a wireless giant to compete against industry leaders AT&T and Verizon. While a new website has been set up by the companies to help quell consumers' and regulators' fears by promising new jobs, improved broadband service, and increased competition, Motherboard's Karl Bode cites previous telecommunications mergers and Wall Street analysts to argue against the merger. From the report: The two companies attempted to merge in 2014 but had their efforts blocked by regulators who were justly worried about the deal's impact on overall competition. As Canadian wireless users can attest, the reduction of major wireless competitors from four to three only reduces the overall incentive for wireless carriers to engage in real price competition. That was the central point repeatedly made by regulators when they prohibited AT&T from gobbling up T-Mobile back in 2011. Even with four competitors, the industry frequently does its best to avoid genuine price competition, and industry watchers have noted that the overall volume of quality promotions for wireless consumers had been dropping so far in 2018. After regulators blocked the AT&T merger, T-Mobile wound up being a largely positive impact on the sector, forcing its competitors to adopt more consumer-friendly policies like eliminating long-term contracts and early termination fees. However, even with T-Mobile intact, price competition in the sector tends to be theatrical in nature.

Wall Street analysts are on record predicting that a Sprint, T-Mobile merger could result in the loss of up to 30,000 jobs -- potentially more than Sprint even currently employs. From retail operations to middle managers, there's an endless roster of human beings who, sooner or later, will be viewed as redundant. "If approved, this deal would especially hurt consumers seeking lower-cost wireless plans, as the combined company's plans would likely increase while competitors AT&T and Verizon would have even less incentive to lower prices," said Phillip Berenbroick, lawyer for the consumer advocacy group Public Knowledge. "Unless the merging parties can demonstrate clear competitive benefits we have yet to see, we will urge the Department of Justice and the FCC to reject this deal."