An anonymous reader quotes a report from MacRumors: Streaming TV services offered by companies like Hulu and AT&T are testing the waters for a new type of advertising called "pause ads." The idea behind pause ads is that instead of facing forced commercial breaks at specified interludes, users would be more accepting of ads that play when they choose to pause a show for a bit while they do something else. Hulu says it plans to launch pause ads in 2019, but not much else was given in the way of details regarding which of its numerous streaming plans will include the new type of commercial. The plan likely to see pause ads is Hulu With Limited Commercials, which interjects a few ads throughout a show's runtime, similar to live TV, but again this hasn't been confirmed.

AT&T cited similar interest in pause ads, stating that it also plans to launch technology in 2019 that plays a video when a user pauses a TV show. For both companies, it's unclear exactly how long these ads will run for, and if you'll be able to immediately cancel them out by simply hitting the play button and resuming your TV show. According to Hulu vice president and head of advertising platforms Jeremy Helfand, pause ads will not be home to longform advertisements, but will instead focus on commercials where advertisers "have seconds" to deliver a message effectively. Over the next three years, Hulu expects "more than half" of its advertising revenue to come from these so-called non-disruptive experiences.

An anonymous reader quotes a report from Gizmodo: The telecom giant has announced the end of its prorated credits for some subscribers who cancel a service in the middle of a billing period. AT&T bills service for DirecTV, U-verse TV, AT&T Phone, AT&T Internet, and Fixed Wireless Internet in advance. It previously offered the option to receive a credit for any unused days in a month when a subscriber canceled before the next billing period, but it will now force many customers to ride out the month with nothing in return. The change goes into effect on January 14, 2019, in most states, so if you're considering a change, it's time to plan ahead. If you're even one day into your billing month, you'll presumably have to pay for the full period, according to the company's new policy. You get to keep the service you don't want for that period of time, but, of course, you're canceling because you don't want it. The change will not apply to customers in California, Illinois, New York and, in some instances, Michigan.

An anonymous reader shares a report: "We've launched our last satellite," John Donovan, CEO of AT&T Communications, said in a meeting with analysts on Nov. 29. The AT&T executive effectively declared the end of the satellite-TV era with that statement. AT&T owns DirecTV, the US's largest satellite company -- and second largest TV provider overall, behind Comcast. DirecTV will continue offering satellite-TV service -- it had nearly 20 million satellite video subscribers as of September, per company filings. But the company will focus on growing its online video business instead, Donovan said.

It has a new set-top box, where people can get the same TV service they'd get with satellite, through an internet-connected box they can install themselves. It expects that box to become a greater share of its new premium-TV service installations in the first half of 2019. It also sells cheaper, TV packages with fewer channels through its DirecTV Now and WatchTV streaming services, which work with many smart TVs and streaming media players like Roku and Amazon Fire TV devices. The practice of getting TV through satellite dishes propped up in backyards and perched on rooftops first took hold in the US in the last 1970s and early 1980s, after TV networks like HBO and Turner Broadcasting System started sending TV signals to cable providers via satellites. People in areas without cable or broadcast TV began putting up their own dishes to receive the TV signals, and that grew into a TV business of its own.

AT&T will alert a little more than a dozen customers within the next week or so that their service will be terminated due to copyright infringement, news outlet Axios reported, citing sources familiar with its plans. From the report: It's the first time AT&T has discontinued customer service over piracy allegations since having shaped its own piracy policies last year, which is significant given it just became one of America's major media companies. AT&T owns a content network after its purchase of Time Warner earlier this year, an entity now called WarnerMedia. Content networks are typically responsible for issuing these types of allegations to internet service providers (ISPs) for them to address with their customers.

An anonymous reader quotes a report from TechCrunch: An unexpected declaration by whistleblower Edward Snowden filed in court [last] week adds a new twist in a long-running lawsuit against the NSA's surveillance programs. The case, filed by the EFF a decade ago, seeks to challenge the government's alleged illegal and unconstitutional surveillance of Americans, who are largely covered under the Fourth Amendment's protections against warrantless searches and seizures. It's a big step forward for the case, which had stalled largely because the government refused to confirm that a leaked document was authentic or accurate. News of the surveillance broke in 2006 when an AT&T technician Mark Klein revealed that the NSA was tapping into AT&T's network backbone. He alleged that a secret, locked room -- dubbed Room 641A -- in an AT&T facility in San Francisco where he worked was one of many around the U.S. used by the government to monitor communications -- domestic and overseas. President George W. Bush authorized the NSA to secretly wiretap Americans' communications shortly after the September 11 terrorist attacks in 2001.

Much of the EFF's complaint relied on Klein's testimony until 2013, when Snowden, a former NSA contractor, came forward with new revelations that described and detailed the vast scope of the U.S. government's surveillance capabilities, which included participation from other phone giants -- including Verizon (TechCrunch's parent company). Snowden's signed declaration, filed on October 31, confirms that one of the documents he leaked, which the EFF relied heavily on for its case, is an authentic draft document written by the then-NSA inspector general in 2009, which exposed concerns about the legality of the Bush's warrantless surveillance program -- Stellar Wind -- particularly the collection of bulk email records on Americans. "I read its contents carefully during my employment," he said in his declaration. "I have a specific and strong recollection of this document because it indicated to me that the government had been conducting illegal surveillance."

An anonymous reader quotes a report from Telecompaper: AT&T has blocked its HBO and Cinemax channels for Dish and Sling TV customers over a carriage dispute. This is the first channel blackout for HBO in its 40 years of operation. Pay-TV provider Dish and OTT services Sling TV said AT&T is making "untenable demands designed specifically to harm customers, particularly those in rural areas, as well as damage competing pay-TV providers" and that at the time of the merger, no guidelines were set in place to ensure AT&T "played fair" for HBO and Cinemax subscribers, regardless of their pay-TV provider.

Dish said AT&T is demanding it pay for a guaranteed number of subscribers, regardless of how many people actually want to subscribe to HBO. The company noted that during the arbitration process, AT&T will have to restore its channels to Dish customers. The company and Sling TV will credit customers on their bill for the time they do not receive either HBO or Cinemax. Dish added that it is also offering customers a free preview of HDNET Movies. An HBO spokesperson said in a statement: "During our forty-plus years of operation, HBO has always been able to reach agreement with our valued distributors and our services have never been taken down or made unavailable to subscribers due to an inability to conclude a deal. Unfortunately, Dish is making it extremely difficult, responding to our good faith attempts with unreasonable terms. Past behavior shows that removing services from their customers is becoming all too common a negotiating tactic for them. We hope the situation with Dish changes soon but, in the meantime, our valued customers should take advantage of the other ways to access an HBO subscription so they can continue to enjoy our acclaimed programming."

An anonymous reader quotes a report from Reuters: Five industry groups representing major internet providers and cable companies filed suit on Thursday seeking to block a Vermont law barring companies that do not abide by net neutrality rules from receiving state contracts. The lawsuit was filed in U.S. District Court in Vermont by groups representing major providers like AT&T, Comcast and Verizon. It followed a lawsuit by four of the groups earlier this month challenging a much broader California law mandating providers abide by net neutrality rules.

The trade associations are also challenging an executive order on the issue signed by Vermont Governor Phil Scott. The Vermont lawsuit was filed by the American Cable Association; CTIA -- The Wireless Association; NCTA -- The Internet & Television Association; USTelecom -- The Broadband Association and the New England Cable & Telecommunications Association. The lawsuit argues that states cannot regulate "indirectly through their spending, procurement, or other commercial powers what they are forbidden from regulating directly."

New submitter JustChapman writes: Local Dallas/Fort Worth WFAA is reporting a major outage of AT&T U-Verse fiber internet, due to a lightening strike at a switching facility in Richardson, TX. Apparently the strike took out primary and secondary power systems, setting fire to the building. One commenter states a representative allegedly said that 1.5 million customers are currently without service.

Another day, another hearing of tech giants in Congress. Wednesday's hearing at the Senate Commerce Committee with Apple, Amazon, Google and Twitter, alongside AT&T and Charter, marked the latest in a string of hearings in the past few months into all things tech: but mostly controversies embroiling the companies, from election meddling to transparency. This time, privacy was at the top of the agenda. The problem, lawmakers say, is that consumers have little of it. From a report: The hearing said that the U.S. was lagging behind Europe's new GDPR privacy rules and California's recently passed privacy law, which goes into effect in 2020, and lawmakers were edging toward introducing their own federal privacy law. AT&T, Apple, Charter and Google used their time in the Senate to call on lawmakers to introduce new federal privacy legislation. Tech companies spent the past year pushing back against the new state regulations, but have conceded that new privacy rules are inevitable. Now the companies realize that it's better to sit at the table to influence a federal privacy law than stand outside in the cold. In pushing for a new federal law, representatives from each company confirmed that they support the preemption of California's new rules -- something that critics oppose. AT&T's chief lawyer Len Cali said that a patchwork of state laws would be unworkable. Apple, too, agreed to support a privacy law, but noted as a company that doesn't hoard user data for advertising -- like Facebook and Google -- that any federal law would need to put a premium on protecting the consumer rather than helping companies make money. But Amazon's chief lawyer Andrew DeVore said that complying with privacy rules has "required us to divert significant resources to administrative tasks and away from invention."

An anonymous reader quotes a report from Ars Technica: AT&T and Verizon are trying to convince the Federal Communications Commission that mobile broadband is good enough for Internet users who don't have access to fiber or cable services. The carriers made this claim despite the data usage and speed limitations of mobile services. In the mobile market, even "unlimited" plans can be throttled to unusable speeds after a customer uses just 25GB or so a month. Mobile carriers impose even stricter limits on phone hotspots, making it difficult to use mobile services across multiple devices in the home. The carriers ignored those limits in filings they submitted for the FCC's annual review of broadband deployment.

Four major US carriers -- AT&T, Sprint, T-Mobile, and Verizon -- are joining forces to launch a single sign-on service for smartphones. From a report: The service, called Project Verify, authenticates app logins so that users don't need to memorize passwords for all their apps. The companies say their solution verifies users through their phone number, phone account type, SIM card details, IP address, and account tenure. Essentially, your phone serves as the verification method with details that are hard to spoof. Users have to manually grant apps permission to use Verify, and it works similarly to how you might log into some services through Gmail or Facebook instead of using a unique account password. Of course, these apps also have to choose to work with Verify, and the program hasn't listed any partners or when it intends to launch. The service can serve as your two-factor authentication method, too, instead of an emailed or texted code that can be intercepted. Users might not be totally safe if their phone is stolen. The Verify program automatically logs users in, so long as they have access to their phone's home screen and apps. More details on Krebs on Security blog.

AT&T is offering a new promotion for first responders and their families. Firefighters, paramedics, and police officers can opt for 25 percent off either of the unlimited plans AT&T announced back in June. But in the fine print, as The Verge points out, "AT&T admits it may throttle data speeds 'when the network is congested.'" The promotion comes soon after Verizon came under scrutiny for throttling firefighters' data as they fought wildfires in California. From the report: AT&T says that first responders looking for completely unlimited internet without data speed caps can use FirstNet, the network it recently began operating specifically for first responders. AT&T was contracted by the U.S. government to built out FirstNet, which offers features that specifically cater to first responders. The company says that it's actively promoting FirstNet, but at the same time, its promotion page doesn't make a mention of the superior plan at all. In an email, AT&T clarified that the promotional plans subject to throttling are for first responders' personal use and family plans. "We're offering first responders and their family members a discount on the consumer plans available today for their personal use," a spokesperson said. "These lines and devices are separate than the FirstNet lines purchased and issued by the first responder agencies, which do not have a data limit."

The deal allows first responders to choose between the AT&T Unlimited & More plan or the Unlimited & More Premium plan, which has more entertainment add-ons to choose from, including HBO, Showtime, and Amazon Music. With the ongoing promotion, a single line alone on Unlimited & More will cost $52.50 a month, while four lines on a plan would cost $30 a month per person. Unlimited & More Premium costs $60 a month for a single line, and $35.62 a month per person for four lines.

The FTC has "failed to convince a federal judge in San Francisco that DirecTV should pay nearly $4 billion in restitution to customers for allegedly misleading consumers about the costs of programming packages," reports the Los Angeles Times. From the report: The judge didn't eliminate all of the FTC's false-advertising claims but made clear that "the scope of the maximum potential recovery in this case has been substantially curtailed." "This case did not involve the type of strong proof the court would expect to see in a case seeking nearly $4 billion in restitution, based on a claim that all of DirecTV's 33 million customers between 2007 and 2015 were necessarily deceived," U.S. District Judge Haywood Gilliam said Thursday.

The ruling follows an August 2017 nonjury trial of the FTC suit, alleging that DirecTV failed to adequately disclose to consumers in 40,000 print, mail, online and TV advertisements that its lower introductory pricing lasted just one year but tied buyers to a two-year contract. The FTC also alleged the subscription television service failed to alert customers that its offer for 90 days of premium channels required them to cancel the subscription to avoid continuing monthly charges.

An anonymous reader quotes a report from Fast Company: Crypto investor Michael Terpin filed a $224 million lawsuit against AT&T in California federal court Wednesday alleging that the phone company's negligence let hackers steal nearly $24 million in cryptocurrency from him, Reuters reports. He's also seeking punitive damages. Terpin says hackers were twice able to convince AT&T to connect his phone number to a SIM card they controlled, routing his calls and messages to them and enabling them to defeat two-factor authentication protections on his accounts. In one case, he says hackers also took control of his Skype account and convinced one of this clients to send money to them rather than Terpin. The second hack came even after AT&T agreed to put an additional passcode on his account, when a fraudster visited an AT&T store in Connecticut and managed to hijack Terpin's account without providing the code or a "scannable ID" as AT&T requires, he says.

In a statement Tuesday, Verizon announced deals making Apple and Google its first video providers for a 5G wireless service its planning to launch in four cities later this year. From the report: The home broadband service will debut in Los Angeles, Houston and Sacramento, California, as well as the newly announced fourth city of Indianapolis, Verizon said Tuesday in a statement. With the introduction, Verizon will provide 5G customers either a free Apple TV box or free subscription to Google's YouTube TV app for live television service, according to people familiar with the plan. After shelving its own online TV effort, New York-based Verizon decided to partner with the two technology giants for video content, a first step toward eventually competing nationally against internet and pay TV providers such as AT&T and Comcast Using fifth-generation wireless technology, Verizon plans to beam online services to home receivers, delivering speeds that match or exceed landline connections.

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.