The U.S. Department of Justice is suing AT&T to block its $85.4 billion acquisition of Time Warner. "The legal challenge was expected after AT&T rejected a demand by the Justice Department earlier this month to divest its DirecTV unit or Time Warner's Turner Broadcasting -- which contains news network CNN -- in order to win antitrust approval," reports Reuters. From the report: AT&T's chief executive said then that he would defend the deal in court to win approval, and the company criticized the Justice Department's case on Monday. The lawsuit is "a radical and inexplicable departure from decades of antitrust precedent," said AT&T lawyer David McAtee, arguing that so-called vertical mergers, between companies that are not direct competitors, are routinely approved. "We see no legitimate reason for our merger to be treated differently," he said, adding that AT&T is confident a judge will reject the Justice Department's case.

An anonymous reader shares a report: Verizon and AT&T announced a joint venture with Tillman Infrastructure to build and share hundreds of cell towers in more in a move that is sure to be seen as a threat to more established tower companies. The companies said the new structures "will add to the overall communications infrastructure in the United States," filling gaps in current tower footprints, but will also enable the nation's two largest network operators to relocate equipment from towers they're currently using. Construction plans on the first towers will begin early next year and will come online "quickly" as they are completed.

Google announced that its Project Loon internet balloons have delivered internet service to over 100,000 Puerto Ricans who were knocked offline by Hurricane Maria. Engadget reports: It's not a total success, which isn't to be expected after Puerto Ricans' communications infrastructure suffered so much damage. But the team was able to work with AT&T and T-Mobile to get "communication and internet activities like sending text messages and accessing information online for some people with LTE enabled phones," head of Project Loon Alastair Westgarth wrote in a blog post. The team launched their balloons from Nevada and used machine learning algorithms to direct them over Puerto Rico, where they've been relaying internet from working ground networks over to users in unconnected areas. In the post, Westgarth noted that Project Loon has never fired up internet from scratch this rapidly, and will improve their ability to keep balloons in place (and deliver sustained connectivity) as they become familiar with the air currents.

An anonymous reader quotes a report from The New York Times (Warning: source may be paywalled; alternative source): The Justice Department has called on AT&T and Time Warner to sell Turner Broadcasting, the group of cable channels that includes CNN, as a potential requirement for approving the companies' pending $85.4 billion deal, people briefed on the matter said on Wednesday. The other potential way the merger could win approval would be for AT&T to sell its DirecTV division, two of these people added. As originally envisioned, combining AT&T and Time Warner would yield a giant company offering wireless and broadband internet service, DirecTV, the Warner Brothers movie studio and cable channels like HBO and CNN. If the Justice Department formally makes either demand a requisite for approval, AT&T and Time Warner would almost certainly take the matter to court to challenge the government's legal basis for blocking their deal.

Apple has started to ship the iPhone X across the United States, but some new iPhone X owners say they aren't able to start using their new phones due to carrier activation issues and congestion. From a report: A number of iPhone X owners on Twitter have reported having issues activating their new phones. The issue seems to be affecting some AT&T, Verizon, and Sprint users in the last few hours as they try to get service on Apple's $1,000 phone. When users try to activate the device, a message pops up saying, "The activation server is temporarily unavailable."

A report from FierceCable says that a million more U.S. pay TV subscribers cut the TV cord last quarter. "Only five of the seven biggest pay TV providers have released their third quarter subscriber data, but collectively these companies saw a net loss of 632,000 pay TV subscribers during the period (385,000 for AT&T and DirecTV, 125,000 for Comcast, 104,000 for Charter, 18.000 for Verizon FiOS TV)," reports DSLReports. "Dish has yet to report its own cord cutting tallies, but the company is again expected to be among the hardest hit due to a high level of retransmission fee feuds and a lack of broadband bundles."

An anonymous reader quotes a report from Reuters: AT&T and the U.S. Department of Justice are discussing conditions the No. 2 wireless carrier needs to meet in order for its acquisition of Time Warner Inc to win government approval. The $85.4 billion deal, hatched last October, is opposed by some consumer groups and TV companies on the grounds that it would give the wireless company too much power over the media it would carry on its own network. Donald Trump, who has accused media companies like Time Warner's CNN of being unfair to him, criticized the deal on the campaign trail last year and vowed that as president his Justice Department would block it. The proposed deal represents an early challenge for the Justice Department's new antitrust chief, Makan Delrahim, a Trump appointee who was confirmed by Congress in late September. Delrahim may be looking to ramp up pressure on AT&T. The Wall Street Journal reported that the Justice Department was laying the groundwork for a potential lawsuit aimed at stopping the deal if settlement talks did not work out.

According to Ars Technica, AT&T is reportedly abandoning its attempt to stop a Louisville ordinance that helped draw Google Fiber into the city. The telecommunications giant sued Louisville and Jefferson County, Kentucky to stop an ordinance that gives Google Fiber and other ISPs faster access to utility poles. AT&T's lawsuit was dismissed in August by a district court, who determined that AT&T's claims that the ordinance is invalid are false. WDRB News and Louisville Business First are both reporting that AT&T has decided not to appeal the ruling.

Janko Roettgers, reporting for Variety: AT&T's DirecTV is getting ready to embrace internet-based content delivery beyond its DirecTV Now service: The company is about to introduce a new TV set-top box that's based on Google's Android TV platform and ditches satellite connectivity for over-the-top streaming, according to a new FCC filing. The new device, which goes by the model number C71KW-400, is being described by these documents as "the new AT&T/DirecTV Wireless 4K OTT Client." A user manual published as part of the filings specifies that the device won't be able to interact with any of DirecTV's existing Genie hardware, and hints at a future hardware product called HS27. Helpfully, the manual also supplies a definition of OTT as "the delivery of video via the internet directly into user-connected devices, allowing access to services anywhere, anytime, on any device." The manual also reveals that the set-top will shop with a voice remote with integrated touch pad, and photos show that it has Ethernet, digital audio, HDMI and USB ports, but no antenna connectivity -- meaning that any and all programming will indeed come over the internet.

An anonymous reader quotes a report from TechCrunch: You may remember that last year, Verizon (which owns Oath, which owns TechCrunch) was punished by the FCC for injecting information into its subscribers' traffic that allowed them to be tracked without their consent. That practice appears to be alive and well despite being disallowed in a ruling last March: companies appear to be able to request your number, location, and other details from your mobile provider quite easily. The possibility was discovered by Philip Neustrom, co-founder of Shotwell Labs, who documented it in a blog post earlier this week. He found a pair of websites which, if visited from a mobile data connection, report back in no time with numerous details: full name, billing zip code, current location (as inferred from cell tower data), and more. (Others found the same thing with slightly different results depending on carrier, but the demo sites were taken down before I could try it myself.)

An anonymous reader quotes the Washington Post: On Wednesday, AT&T told regulators that it expects to finish the quarter with about 90,000 fewer TV subscribers than it began with. AT&T blamed a number of issues, including hurricane damage to infrastructure, rising credit standards and competition from rivals. The report also shows AT&T lost more traditional TV customers than it gained back through its online video app, DirecTV Now. And analysts are suggesting that that's evidence that cord-cutting is the main culprit... "DirecTV, like all of its cable peers, is suffering from the ravages of cord-cutting," said industry analyst Craig Moffett in a research note this week. Moffett added that while nobody expected AT&T's pay-TV numbers to look good, hardly anyone could have predicted they would look "this bad."

The outlook doesn't look much healthier for the rest of the television industry. Over the past year, cable and satellite firms have collectively lost nearly 3 million customers, according to estimates by market analysts at SNL Kagan and New Street Research. The number of households with traditional TV service is hovering at about the level it was in 2000, according to New Street's Jonathan Chaplin, in a study last week. Other analysts predict that, after factoring in AT&T's newly disclosed losses, the industry will have lost 1 million traditional TV subscribers by the end of this quarter.

Last month, it was reported that T-Mobile is close to agreeing tentative terms on a deal to merge with Sprint. Now, it appears that negotiations between the two companies are almost complete. Android Police reports: The report claims that Sprint and T-Mobile are putting the finishing touches on the merger, which will likely be announced at the quarterly earnings report at the end of this month. Some of the current discussion topics include Sprint's valuation (estimated to be around $29 billion), the location of the combined company's headquarters, and appointments to the executive management team. The merge is not expected to include a breakup/termination fee, meaning if one company backed out of the deal, there would be no financial penalty. This would align both companies to lobby government regulators for approval without any conflicts of interest. After AT&T called off its buyout of T-Mobile in 2011 due to government opposition, the company paid a $4 billion breakup fee to T-Mobile, which helped strengthen T-Mobile as a competitor. The report notes that while T-Mobile and Sprint's quarterly earnings reports have not been set, T-Mobile's was on October 24 last year, and Sprint's was the next day.

An anonymous reader quotes a report from Bloomberg: AT&T and other broadband providers asked the U.S. Supreme Court to overturn the Obama-era "net neutrality" rule barring internet service providers from slowing or blocking rivals' content. The appeals, filed Thursday, will put new pressure on a rule enacted in 2015 when the Federal Communications Commission was under Democratic control. Filing a separate appeal from AT&T were the United States Telecom Association, a trade group, and broadband service provider CenturyLink. The embattled net neutrality rules bar internet service providers such as AT&T, Verizon and Comcast from blocking or slowing some web traffic in favor of other content -- their own or a paying customer's. "The practical stakes are immense," AT&T said in its appeal of a ruling that backed the FCC. The company pointed to a dissenting opinion that said the regulation "fundamentally transforms the internet" and will have a "staggering" impact on infrastructure investment.

dustman81 writes: AT&T Uverse modems were found to have several serious vulnerabilities, including a superuser account with hardcoded username/password exposed to the internet via SSH, a HTTP server with little authentication which allows command injection, and an internet exposed service which exposes internal clients to external attacks. Information security consulting and software development firm Nomotion reports the findings in their blog: "It was found that the latest firmware update (9.2.2h0d83) for the NVG589 and NVG599 modems enabled SSH and contained hardcoded credentials which can be used to gain access to the modem's 'cshell' client over SSH. The cshell is a limited menu driven shell which is capable of viewing/changing the WiFi SSID/password, modifying the network setup, re-flashing the firmware from a file served by any tftp server on the internet, and even controlling what appears to be a kernel module whose sole purpose seems to be to inject advertisements into the user's unencrypted web traffic. Although no clear evidence was found suggesting that this module is actually being used currently, it is present, and vulnerable. Aside from the most dangerous items listed above, the cshell application is also capable of many other privileged actions. The username for this access is remotessh and the password is 5SaP9I26." The report continues to detail the other vulnerabilities: Default credentials 'caserver' https server NVG599; Command injection 'caserver' https server NVG599; Information disclosure/hardcoded credentials; and Firewall bypass no authentication.

Further reading: FierceTelecom; The Register

An anonymous reader quotes a report from Ars Technica: AT&T is facing a complaint alleging that it discriminates against poor people by providing fast service in wealthier communities and speeds as low as 1.5Mbps in low-income neighborhoods. The formal complaint filed today with the Federal Communications Commission says that AT&T is violating the Communications Act's prohibition against unjust and unreasonable discrimination. That ban is part of Title II, which is best known as the authority used by the FCC to impose net neutrality rules. But as we've explained before, Title II also contains important consumer protections that go beyond net neutrality, such as a ban on discrimination in rates, practices, and offerings of services.

"This complaint, brought by Joanne Elkins, Hattie Lanfair, and Rachelle Lee, three African-American, low-income residents of Cleveland, Ohio alleges that AT&T's offerings of high-speed broadband service violate the Communications Act's prohibition against unjust and unreasonable discrimination," the complaint says. AT&T is not immune to the ban on discrimination "merely because its discrimination is based on investment decisions," the complaint also says.

An anonymous reader quotes a report from Ars Technica: AT&T has lost a court case in which it tried to stall construction by Google Fiber in Louisville, Kentucky. AT&T sued the local government in Louisville and Jefferson County in February 2016 to stop a One Touch Make Ready Ordinance designed to give Google Fiber and other new ISPs quicker access to utility poles. But yesterday, U.S. District Court Judge David Hale dismissed the lawsuit with prejudice, saying AT&T's claims that the ordinance is invalid are false. "We are currently reviewing the decision and our next steps," AT&T said when contacted by Ars today. One Touch Make Ready rules let ISPs make all of the necessary wire adjustments on utility poles themselves instead of having to wait for other providers like AT&T to send work crews to move their own wires. Without One Touch Make Ready rules, the pole attachment process can cause delays of months before new ISPs can install service to homes. Google Fiber has continued construction in Louisville despite the lawsuit and staff cuts that affected deployments in other cities.

According to The Verge, over 10,000 batteries for the Galaxy Note 4 are being recalled for risk of overheating that could lead to burns or fires. Given last year's Note 7 fiasco, this recall sure doesn't sound good. It is, however, far more limited than the Note 7 recall and doesn't appear to be Samsung's fault. The Verge reports: Only phones refurbished through AT&T's insurance program and handled by FedEx Supply Chain are impacted by the recall. Some of the refurbished phones apparently ended up with "counterfeit" batteries that include anomalies that could make them overheat. Fortunately, the Note 4 has a replaceable battery, so this recall isn't as big of a deal. Owners can just buy a new battery to use in their phone until the recall is taken care of. FedEx is currently sending out replacement batteries as well as boxes for returning the recalled phones. "FedEx Supply Chain is conducting this recall of non-genuine Samsung batteries as some of them are counterfeit," the spokesperson said. "The refurbishment program was managed by FedEx Supply Chain and operated independently of Samsung. Any affected owners should contact FedEx Supply Chain at 1-800-338-0163 or go online at www.exchangemybattery.com for more information." There's only been one report of a phone overheating and no damage to people or property because of it.

An anonymous reader quotes a report from Recode: Unlimited data plans are slowing down mobile speeds for Verizon and AT&T customers, according to data released today by mobile network measurement company OpenSignal. Verizon and AT&T reinstated their unlimited plans in February to compete with T-Mobile and Sprint, which have long offered unlimited data plans, and have since seen a deluge of demand. Greater data demand -- either more data usage or more customers -- means slower speeds. Think of it as increased traffic on a highway. Verizon and AT&T also have nearly double the subscribers of T-Mobile and Sprint, so changes in their offerings hit their networks harder. Both Verizon and AT&T saw a notable decline in speeds after introducing unlimited plans. T-Mobile and Sprint have been able to gradually account for the increase in data demand, so their speeds weren't negatively affected this year -- indeed, they both got faster since OpenSignal's February report. Verizon and T-Mobile were basically tied for speeds at the beginning of this year. Now, T-Mobile has taken the lead with an average LTE download speed of 17.5 Mbps, compared with Verizon's 14.9 Mbps. Here's a good comparison of the unlimited plans currently offered by the "Big 4" carriers.

Amazon, Facebook, Google and Netflix -- along with their telecom industry foes -- have not committed to sending their chief executives to testify before the U.S. Congress in September on the future of net neutrality. From a report: Not a single one of those companies told the powerful House Energy and Commerce Committee, which is convening the hearing, that they would send their leaders to Washington, D.C., in the coming weeks, even at a time when the Trump administration is preparing to kill the open internet rules currently on the government's books. The panel initially asked those four tech giants, as well as AT&T, Charter, Comcast and Verizon, to indicate their plans for attendance by July 31. Now, the committee is pushing back its deadline indefinitely, as it continues its quest to engage the country's tech and telecom business leaders on net neutrality. "The committee has been engaging in productive conversations with all parties and will extend the deadline for response in order to allow for those discussions to continue," a spokesman said.

According to Variety, AT&T's pay-TV business has lost a record 351,000 traditional video customers in the second quarter, with the internet-delivered DirecTV Now service failing to fully offset the losses. From the report: In Q2, historically a seasonally weak period for the pay-TV business, DirecTV's U.S. satellite division lost 156,000 customers sequentially, dropping to 20.86 million, compared with a gain of 342,000 in the year-earlier quarter. AT&T's U-verse lost 195,000 subs in the quarter, which was actually an improvement over the 391,000 it lost in Q2 of 2016. AT&T touted that it gained 152,000 DirecTV Now customers in Q2, after adding just 72,000 in the first quarter of 2017. Overall, it had signed up 491,000 DirecTV Now subs as of the end of June, after the OTT service launched seven months ago.