Cell phones and smart phones

This living topic explores the multifaceted world of smartphones, covering everything from consumer satisfaction with wireless providers to the impact of mobile technology on daily life. Key points include the introduction of new technologies like 5G and augmented reality, the financial and psychological implications of constant connectivity, and the challenges posed by data breaches and customer service quality. The content also delves into regulatory issues, including right-to-repair legislation, and practical tips for managing mobile device usage and protecting personal information. Consumer experiences, expert analyses, and emerging trends are highlighted to provide a comprehensive understanding of the smartphone landscape.

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T-Mobile will use SpaceX satellites to expand coverage areas

T-Mobile will use SpaceX’s Starlink satellites to expand cellular coverage, connecting consumers’ phones with satellites orbiting the earth.

The wireless provider announced an agreement with the Elon Musk-owned company – the first of the major cellular providers to offer service from space. 

You may have seen ads from most of the cellular providers, coloring in the areas where they have coverage. While there is a lot of color on most of those coverage maps, there are some white spaces – gaps in the coverage. Melissa, a T-Mobile customer in Onstead, Mich., says she lives in one of those gaps.

“We have 5 phones connected to the T-Mobile network,” Melissa wrote in a ConsumerAffairs review. “When we are home not one phone gets network service. We can only use our calender, alarm clock, and camera on our phones.”

T-Mobile says there are plenty of cellphone users who have Melissa’s problem. Despite powerful LTE and 5G wireless networks, the company says well over half a million square miles of the U.S., in addition to vast stretches of ocean, are untouched by cell signals from any provider.

That should be changing, albeit slowly, at T-Mobile. The company said it will offer plans that will include satellite coverage, along with the current plans that only use cell towers. 

Most users won’t need a new phone

The satellite networks will use T-Mobile's mid-band spectrum. Because of that, most consumers who sign up for the expanded coverage won’t have to buy a new phone. The new satellite plan will start with texting services in a beta test early next year.

“We’ve always thought differently about what it means to keep customers connected, and that’s why we’re working with the best to deliver coverage above and beyond anything customers have ever seen before,” said Mike Sievert, CEO of T-Mobile. “More than just a groundbreaking alliance, this represents two industry-shaking innovators challenging the old ways of doing things to create something entirely new that will further connect customers and scare competitors.”

Musk said the agreement will benefit consumers while improving safety and security, noting that it “means there are no dead zones anywhere in the world for your cell phone.” 

T-Mobile’s announcement did not contain any information about what the new satellite coverage will cost.

T-Mobile will use SpaceX’s Starlink satellites to expand cellular coverage, connecting consumers’ phones with satellites orbiting the earth.The wireles...

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Consumers say dealing with wireless providers is getting harder

Wireless companies spend lots of money on ads that urge consumers to switch providers. But a new study suggests that consumers find the process of purchasing a new phone or wireless plan less pleasant than in the past.

J.D. Power’s 2022 U.S. Wireless Purchase Experience Study found a number of reasons for this diminished satisfaction. Consumers who participated in the study and who purchased a wireless phone or switched to a new provider in the last six months said the transactions are taking longer to complete.

They also complain that they’re having to do much of the work themselves because of a decline in customer service. Ian Greenblatt, managing director at J.D. Power, says it might be a result of the upheaval in the job market caused by the COVID-19 pandemic.

“Staff retention constraints, shorter representative tenure, and less training are leading to a longer time to complete the purchase, more perceived effort from the customer, and ultimately, a decrease in satisfaction,” Greenblatt said. “As consumers increase their device usage and reliance, the purchase experience becomes that much more important. The study finds that respondents believe they’re paying more and receiving less.”

Happy T-Mobile customer

Among the big three wireless operators, T-Mobile was rated as the easiest to deal with by consumers posting their feedback at ConsumerAffairs. Jacqueline, of Virginia Beach, Va., recently told us about a good experience.

“I had Toure from customer care assist me today in transferring my phone from the Sprint network to the T-Mobile account,” Jacqueline wrote in a ConsumerAffairs review. “She went above and beyond on customer service. She followed through the entire process and got me where I needed to be. She was amazing and T-Mobile should be so grateful to have her on their team!”

Sammy, of Bloomfield, Colo., told us about a frustrating experience with Verizon when he switched from AT&T and tried to transfer four lines on his plan.

“Only three lines were transferred and they forgot to transfer my fourth line,” Sammy told us. “And when I called to [activate] that fourth line they keep telling me that they cannot verify my information.”

Virtual mobile network operators did better in the J.D. Power survey than the legacy carriers. While T-Mobile had a satisfaction score of 797, Cricket led mobile virtual network operators with a score of 821. Metro by T-Mobile ranked second, and Spectrum Mobile ranked third, with both earning satisfaction scores above 800.

Wireless companies spend lots of money on ads that urge consumers to switch providers. But a new study suggests that consumers find the process of purchasi...

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More consumers report problems with wireless network quality

Consumers are increasingly using their cell phones and smartphones to access the internet as much as they use them to talk, and those growing data demands on mobile networks are causing problems. 

The J.D. Power 2022 U.S. Wireless Network Quality Performance Study found that an increasing number of consumers are reporting problems with network quality. The most common reported problem is slow data or failure to load content.

“An uptick in wireless and device usage was bound to catch up to network quality,” said Ian Greenblatt, managing director at J.D. Power. “Wireless customers are increasingly adept in data usage and streaming, meaning they’re less inspired and more aware of problems. 

J.D. Power tracked customer satisfaction with wireless service across five different regions in the U.S. It found that Verizon Wireless ranked highest in all five regions, achieving the fewest network quality problems per 100 connections (PP100) in call quality.

An analysis of ConsumerAffairs reviews of the Big Three wireless providers shows that consumers give the edge to AT&T:

AT&T: 3.9 stars

Verizon: 3.5 stars

T-Mobile: 3.2 stars

Updated phones can help

Sometimes the perception of service improves when new equipment is involved. Kenneth, of Elmhurst, N.Y., said he was shocked at how much faster his T-Mobile service was when he upgraded phones.

“With the newer phones we got, they all so far worked flawlessly and T-mobile is the only carrier to have 5G on the phones too,” Kenneth wrote in a ConsumerAffairs review. “We have sim cards spread out between all the carriers based on level of use so it's as cheap as possible for us overall and I can say that one carrier has great signal, T-mobile.” 

In fact, J.D. Power found that the number of problems is significantly lower when 5G is available. When wireless customers reported issues, the survey found that it mostly involved streaming audio and video quality, slow loading times, and calls not going through.

Cheaper plans may be problematic

Our analysis of ConsumerAffairs reviews also suggests that customers with the most expensive plans report the fewest problems with network quality. Herbert, of Palmetto, Fla., has a Verizon plan with up to 50 gigabytes of data usage.

“After the usage they claim you will be slowed to .6 Mbps to 3.0 Mbps, which is still fast enough to surf the net and perform email, etc.,” Herbert told us. “Well it doesn't work that way. They slow the data to .01 Mbps up to .26 Mbps which doesn't even allow you to surf the net.”

With inflation at a 40-year high, more customers may be tempted to move to lower-priced plans. While they may pay less money each month, the level of satisfaction may also go down.

Consumers are increasingly using their cell phones and smartphones to access the internet as much as they use them to talk, and those growing data demands...

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The hot summer heat plays havoc not only with people, but smartphones, too

With the planet now in its seventh year of the hottest in recorded history, not only are people trying to keep cool, but their smartphones would like to, as well. Phones already have enough heat-producing processes on their own – enabling a device’s camera, apps, and calls – but added environmental heat can lead to battery drain, performance problems, and even a complete shutdown.

There are ways to prevent this from happening, though. ConsumerAffairs surveyed the landscape of advice and found these tips from AT&T, T-Mobile, Xfinity, Asurion, and others. We’ll start with AT&T’s six best tips:

Don’t subject your wireless device to extreme temperature changes. If you and your phone are out in 90+ degree temperatures, it might seem logical that the best way to cool down is to quickly move to an air-conditioned area. Turns out that idea isn’t a smart one, though. “Bringing your electronics from a 90+ degree sunny day to a well air-conditioned room is a great way to moisten the interior of your device,” AT&T told ConsumerAffairs. “Allow your phone to transition gradually to the cooler temperatures by putting it in your purse or pocket before entering the room.”

Keep multiple wireless devices stored separately.  Another hmm-worthy tip AT&T offered was that if you’re carrying both your smartphone and a tablet or laptop, keep them separated and away from each other. The carrier said that since each electronic device conducts heat of its own, stacking them or keeping them pressed up against each other intensifies the heat and obstructs airflow that can keep them comfortably cool.

Don’t leave your wireless device in the car. If you go shopping or running errands in the sweltering heat, it would be wise to take your phone with you instead of popping it in the glove box. Heat is heat, and compartments in the car can suffer just as much as things that are exposed to direct sunlight.

Reduce the risk of overheating from within your phone

While keeping the phone out of the sun's glare can help immensely, AT&T said there are several apps that can help monitor your phone’s temperature and alert you when overheating is a risk. Here are 10 that ConsumerAffairs found expressly for Android phones. As for iPhones, How To's Guru suggests the CPU-Z or System Monitor apps.

In offering suggestions for keeping phones cool, TechRadar suggests removing the case and turning off some of the more intense energy-sucking apps, like games. 

Additional pieces of advice offered by Asurion – the tech insurance provider – were lowering your screen brightness, turning off Bluetooth, and turning on airplane mode, especially if your phone has little or no signal.

When ConsumerAffairs surveyed tips from Xfinity (previously known as Comcast), it suggested that on top of turning off Bluetooth, phone users should also turn off GPS and Wi-Fi to reduce the device’s energy demands.

Finally, device users can go the insurance route, too. Most wireless providers have insurance options that cost a fraction of the price it would cost to replace your phone. Here are AT&T’s device coverage options, T-Mobile’s, and Verizon’s

With the planet now in its seventh year of the hottest in recorded history, not only are people trying to keep cool, but their smartphones would like to, a...

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AT&T to use GPS locations to route 911 calls

In emergency situations such as a stroke, time is of the essence. To cut down on emergency response times, AT&T has upgraded its system so that wireless 911 calls are routed to the appropriate call centers more quickly.

The new nationwide enhancement – “Locate Before Route” – will use location-based routing so that AT&T can more accurately identify where a wireless 911 call is coming from. The feature will use a device's GPS and hybrid information to route the call.

Previously, wireless 911 calls were routed based on the location of cell towers. Given a tower’s typical 10-mile coverage, emergency responses were sometimes delayed. According to AT&T, those delays sometimes increased when a call was made within the border areas of a 911 call center where state, county, or city boundaries overlap.

“In today’s environment, over 93% of the US Population have cell phones and rely on these for communications. It is critical that when they dial 9-1-1 the call routing is going into the closest dispatch center. This will be a game changer for wireless 9-1-1 calls," said Kim Zagaris, a retired fire chief and the technology and policy advisor of the Western Fire Chief Association, in a comment sent to ConsumerAffairs. 

"With the new release of AT&T location-based routing, a device can be located and routed within 164 feet of the device location. Taking away the transfer time of the past systems and be quicker response for emergency personal responding saving valuable time.”

The nationwide rollout of AT&T's new feature has already started and is available in 16 states – Alaska, Colorado, Hawaii, Idaho, Montana, Oregon, Washington, Wyoming, Kansas, Illinois, Iowa, Minnesota, North Dakota, Missouri, Nebraska, and South Dakota. The company promises that other regions will be rolled out over the next several weeks, and company officials hope to have the country completely covered by the end of June.

AT&T addresses possible privacy concerns

In an email to ConsumerAffairs, an AT&T spokesperson said mobile customers can feel confident that the new location feature will not cross any privacy lines. 

"The handset location used for Location Based Routing is only used when a caller places a 9-1-1 call," the spokesperson said, adding that a 911 caller’s location is only shared with public safety professionals at the call center and the data is delivered via dedicated links to the center.

In emergency situations such as a stroke, time is of the essence. To cut down on emergency response times, AT&T; has upgraded its system so that wireless 9...

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AT&T raises prices on its older wireless plans

AT&T is raising prices on its older mobile service plans for the first time in three years. However, customers on its newer plans will not see any changes at this time.

The monthly fees on AT&T's older packages are increasing by $6 a month for single-line customers and up to $12 a month for families, according to various reports. Subscribers will have the option to avoid the price hike by switching to new unlimited plans.

“The price increases mark a high-profile reversal for an industry that has mostly competed for new customers with discounts, free phones and low-priced family plans—even after shrinking to a three-player market with the purchase of Sprint Corp. by T-Mobile US Inc. in 2020,” Bloomberg reported.

AT&T explains its reasons

In a statement to ConsumerAffairs, AT&T said it is asking its customers to check out its other offerings. 

“We are encouraging our customers to explore our newer plans, which offer many additional features, more flexibility for each line on their account and, in many cases, a lower monthly cost,” a company official told us. 

AT&T says customers who switch plans will gain access to 5G service and ActiveArmor, an app feature that will give its customers advanced security features like identity monitoring

Inflation and changes to prices

Consumers who are concerned about paying more for mobile service may have less to worry about than they thought. According to In2013Dollars.com and the U.S. Bureau of Labor Statistics, prices for wireless telephone services are 52.01% lower in 2022 versus 1997 (a $26.01 difference in value).

While it’s not something AT&T has ballyhooed in its marketing campaigns, the company has been warning investors that it’s feeling the pinch of inflation like everyone else.

Despite rising wages taking a bigger bite out of the company's bottom line, CEO John Stankey said on an earnings call last month that AT&T's customer base was "satisfied" with the value the company has been putting back into its products and services.

“Our history would suggest that we know how to do that, and we can do that. And we'll be very smart and judicious as we have to apply it,” he said.

AT&T; is raising prices on its older mobile service plans for the first time in three years. However, customers on its newer plans will not see any changes...

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Reducing smartphone screen time may improve well-being, study finds

A new study conducted by researchers from Ruhr University explored how consumers’ smartphone use may affect their health. According to their findings, reducing time spent on smartphones over the long term can work to improve consumers’ overall well-being

“The smartphone is both a blessing and a curse,” said researcher Julia Brailovskaia. “It’s not necessary to completely give up the smartphone to feel better. There may be an optimal daily usage time.” 

Limiting smartphone use

The researchers divided over 600 participants into three groups for the study. One group of participants didn’t use their phones at all for one week, a second group reduced their smartphone use by one hour each day, and a third group didn’t change their behavior with their phones. The researchers then interviewed the participants one month and four months later to learn about their lifestyles, mental health, and their life satisfaction. 

Ultimately, the researchers learned that cutting back on time spent on smartphones was beneficial. The participants reported less anxiety and depression symptoms and an overall healthier lifestyle. Spending less time on smartphones led to more physical activity and less cigarette smoking.

“We found that both completely giving up the smartphone and reducing its daily use by one hour had positive effects on the lifestyle and well-being of the participants,” said Brailovskaia. “In the group who reduced use, these effects even lasted longer and were thus more stable than in the abstinence group.” 

The researchers explained that there isn’t a set rule for consumers when it comes to how much time they should spend on their phones. The study showed that the group that cut back smartphone use by one hour each day during the study had limited their screen time by about 45 minutes within the first four months of the study. 

The team hopes consumers understand that they don’t need to stop using their smartphones entirely. Instead, cutting back on smartphone use can help consumers long-term. 

A new study conducted by researchers from Ruhr University explored how consumers’ smartphone use may affect their health. According to their findings, redu...

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Consumers report mixed results with 5G’s rollout

There have been a few bumps in the road as telecom companies roll out 5G service, but many industry experts say that’s to be expected with the deployment of what is essentially a new technology.

Earlier this year, there was a delay in turning on 5G service in areas adjacent to airports after the Federal Aviation Administration (FAA) raised concerns about possible interference with navigation systems. 

On Wednesday, the FAA warned that 5G wireless service could interfere with radio altimeters in Boeing 737s. That said, the agency said it does not see a safety issue for planes operating in areas where the 5G environment has been rendered safe for aviation.

What consumers say

An analysis of ConsumerAffairs reviews suggests that consumers have also experienced mixed results in the early days of 5G. Douglas, of Kingsport, Tenn., told us he has had good results so far with Cricket Wireless's unlimited 5G plan.

“I have used the service for over 6-months now and continually exceed the 22GB usage threshold,” Douglas wrote in a ConsumerAffairs review. “I have never been ‘throttled’ or slowed-down and get consistent LTE download speeds of 100-200Mbps and am able to stream full HD video. I am still in a 4G market as of writing this review but have noticed my phone switching between 4G/5G for the last few weeks and expect that 5G will be deployed soon.”

Jackie, of Oxford, Conn., reports satisfactory results from another small player, PureTalk. Even in a rural area, she says she’s receiving 5G service.

“I live off the beaten path and have always had some issues with cell service but that is a thing of the past with PureTalk,” Jackie told us. “I now have 5G coverage where I used to have 0 bars."

But Aja, of Memphis, Tenn., reports that she has 5G connectivity issues on T-Mobile, an issue she thinks might be related to her carrier.

“Didn't have service in multiple places (where) my AT&T worked just fine,” Aja wrote in a ConsumerAffairs review. “Additionally even when I had full bars on 5G, half the time content wouldn't load."

More 5G devices coming

The major wireless companies have recently stepped up the pace of their 5G rollouts, and equipment manufacturers have responded with more 5G devices. A study from ABI Research projects the launch of more always-on 5G portable device models in 2022 and predicts sales could top 12 million by the end of this year.

At the same time, major carriers are beginning to turn off their 3G networks since they need to redeploy the spectrum to 5G users. That raised concerns this week that many security and health monitor devices could go dark since they use the older, slower wireless frequencies.

There have been a few bumps in the road as telecom companies roll out 5G service, but many industry experts say that’s to be expected with the deployment o...

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AT&T to phase out 3G service, putting millions of consumers in buy or upgrade mode

AT&T began saying goodbye to 3G on Tuesday. It’s an expensive proposition, as it projects to cost the company around $130 million to sunset the service. But with 5G now becoming the industry standard, the telecom likely feels 3G is an albatross it no longer needs.

The shutdown will create immediate problems for an estimated 10 million people who have older phones, smartwatches, Kindle readers, roadside assistance systems, and home alarm systems.

AT&T is the lone wolf in saying goodbye to 3G at the moment, but that won't last for long. T-Mobile is shuttering its 3G systems on March 31, and Verizon is retiring its 3G service on December 31. With its purchase of Sprint, T-Mobile will reportedly phase out that provider's LTE network on July 1.

The impact on services and customers

ConsumerAffairs took a look at who and what may be impacted short term by AT&T's move. Here's what we found:

Impacted phones: AT&T has released a laundry list of all the phones that WILL continue to work on its network after 3G goes away. That list is available here. It’s a safe bet that if a phone is NOT listed and the user has an AT&T account, then it will either need to be replaced or the user will have to find another service provider that will support the device.

An important side note to people who have aging parents – many of the millions of consumers who have 3G in their lives are older users. Adult children may be called on to help their parents find a new provider or update their phones.

Other impacted devices: Other than phones, people who have 3G Kindles, fall protectors (medical alert systems), and some automotive systems (such as in-car crash notification systems and roadside assistance systems like OnStar) will also have to update their devices or find replacements.

CNN reports that General Motors (GM) – the company behind OnStar – started pushing out updates to Chevrolet, Buick, and Cadillac owners months ago.

“As a general rule, most cars built in the last five years with connectivity are using 4G modems. If the car does run on 3G, the manufacturer may offer an upgrade program or the wireless carrier can provide an adapter with a modem that can be plugged into a vehicle,” CNN reported.

Alarm/security systems: In advice to its customers, Vector Securitysaid that alarm system providers should have already reached out to their subscribers to ensure that there is no lapse in service for your system.

The company has published a list of questions that consumers can ask their providers if they want to start the process of updating their system. Those questions include:

  • Will the 3G sunset impact my security system?

  • When are cellular carrier changes expected to roll out in my area?

  • What is your company’s timeline and plans for customer updates?

  • Can I update my system in advance, or do I need to wait for a tiered rollout?

  • Will I be charged a service fee to upgrade my system? If so, how much?

  • Do I need to purchase new equipment, or will it be provided free of charge?

  • How can I schedule a service call to update my system, if needed?

Is AT&T offering special deals to help impacted customers?

The company hasn’t said whether it’s giving any special discounts or compensation to customers affected by 3G’s sunsetting, but they did for at least one ConsumerAffairs reviewer

Jason, from Angelgrove, Del., said he wasn't being given a direct answer about whether his phone/plan was impacted by the 3G change. Finally, he ended up speaking to a supervisor who gave him a one-time $10 credit “out of their infinite generosity and remorse.”

The bottom line? Just ask if AT&T can provide you with assistance. The worst thing the company can do is say no, right?

AT&T; began saying goodbye to 3G on Tuesday. It’s an expensive proposition, as it projects to cost the company around $130 million to sunset the service. B...

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Having good posture while using smartphones may reduce consumers' pain, study finds

As consumers spend more and more time on their smartphones, researchers continue to conduct studies that explore how that time is affecting overall wellness

Experts from Texas A&M University recently found that spending a lot of time on smartphones can negatively impact consumers’ posture. Bad posture can lead to chronic pain over time, so the team suggests adopting ergonomic interventions that can correct posture issues. 

“When we started this study a few years ago, it was because we had determined that college students were the heavy users of smartphones,” said researcher Mark E. Benden. “Now those same levels we were concerned about in college students are seen in 40-year-olds and college students have increased to new levels.” 

Finding better posture habits

The researchers had over 500 college students complete a 35-minute online survey that asked questions about how much time they spent on different devices, their current stress levels, pain they regularly experience, and their typical posture when using electronic devices. 

Ultimately, the majority of students identified their smartphones as the device they were using most frequently. However, the participants’ pain had less to do with what devices they were using and more to do with how they were positioned while using their devices. 

Very few students reported using their phones while sitting with proper posture in a chair at a desk. Instead, most of the students said they used their phones primarily when sitting on the couch or in other positions that lead to poor posture. The researchers said sitting in these positions most likely contributes to the pain some students may feel. 

To combat this, the team hopes ergonomic interventions that prioritize good posture will become more widely used – especially among those who spend a lot of time on electronic devices. 

“Now that we are moving toward hybrid and/or remote workspaces for our jobs, college students are taking habits formed in dorm and apartment rooms during college into young adulthood as employees in home offices,” Benden said. “We need to get this right or it could have adverse impacts on an entire generation.” 

As consumers spend more and more time on their smartphones, researchers continue to conduct studies that explore how that time is affecting overall wellnes...

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FCC tightens requirements for phone companies in effort to fight robocalls

After finding loopholes in its anti-robocall STIR/SHAKEN initiative, the Federal Communications Commission (FCC) is tightening up the requirements for phone companies. Effective immediately, carriers are prohibited from accepting calls from any voice service provider that hasn’t implemented the new caller ID authentication standards or filed a detailed robocall mitigation plan with the FCC. 

The new requirement is an important element of the agency’s anti-robocall effort. Without it, there’s no guarantee that a carrier can accurately verify the accuracy of Caller ID on an incoming call. As of 1:30 PM EST on Wednesday, the FCC said that 4,798 companies had filed in the Robocall Mitigation Database.  

“The FCC is using every tool we can to combat malicious robocalls and spoofing – from substantial fines on bad actors to policy changes to technical innovations like STIR/SHAKEN,” said Acting FCC Chairwoman Jessica Rosenworcel. “Today’s deadline establishes a very powerful tool for blocking unlawful robocalls.  We will continue to do everything in our power to protect consumers against scammers who flood our homes and businesses with spoofed robocalls.”

Despite good intentions, things could still go wrong

In its announcement, the FCC recognized that even though STIR/SHAKEN should improve the quality of caller ID information, a robocaller could still trick the system and place calls disguised as a “legitimate” caller -- much like the ruse behind Caller ID spoofing.

“This improved information will help verify the phone number from which the call was made – or flag that it is not verified – and help blocking services both at the consumer level and before the call reaches the consumer,” the agency wrote. “But consumers should remain vigilant against robocall scammers. The FCC is committed to continuing to fight against malicious spoofing and illegal robocalls.”

Until there is a truly perfect system, the FCC says there are ways a person can possibly reduce a robocaller’s chances of getting through. Several wireless/mobile companies have added protections that consumers can use to give them some added peace of mind. Those include:

  • AT&T: Mobile security and call protection services.

  • Google Project Fi: Call blocking options for Project Fi wireless service.

  • Sprint: Call blocking options using My Sprint.

  • T-Mobile: Call-protection options to identify or block potential scammers.

  • U.S. Cellular: Automatic network call identification, labeling, and blocking app options.

  • Verizon: Call Filter FAQS for screening and blocking unwanted calls.

There are also landline and device solutions (like those offered via Apple’s iPhone) that consumers can add to their arsenal. The FCC provides a list of those, along with links to those add-ons, here.

After finding loopholes in its anti-robocall STIR/SHAKEN initiative, the Federal Communications Commission (FCC) is tightening up the requirements for phon...

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Verizon adds ‘neighborhood filter’ to block scam calls from same area code

Verizon has updated its free Call Filter app with a “Neighborhood Filter” to cut down on the number of scam calls customers receive from numbers with their same area code and prefix. 

The tactic is called “neighbor” or “neighborhood spoofing,” and scammers use it to trick people into answering their call. Verizon said the filter allows customers to silence and send these types of calls straight to voicemail. 

“The Neighborhood Filter is the latest enhancement to Call Filter, which gives you the power to block or avoid many of these robocalls at no cost,” the carrier said in an announcement. “While Call Filter auto blocks high risk (Potential Fraud) calls, you may choose to block all spam risk levels in order to silence spam callers from reaching your device with just a few taps on the free Call Filter app or by going to My Verizon.”

Allowing certain calls 

If a call you wanted to receive was thwarted by the filter, Verizon says there’s an option to select “Ignore Filter” in the post-call details in the Call Filter app. Selecting this option will prevent the call from being blocked again in the future. 

“The filters can be removed at any time by tapping ‘Remove’ next to the neighborhood in the ‘Other Filters’ section of the ‘Block Management’ page,” Verizon added. 

In addition to filtering out suspicious calls coming from the same area code, customers can choose to add up to ten other neighborhood numbers that scammers have targeted them with. Adding more numbers will cost an extra $3 per month through the company’s Call Filter Plus service. 

The company said the new filter is part of its “ongoing commitment” to protecting customers from unwanted calls. Verizon noted that over 78 million of its customers have been shielded from over 13 billion unwanted calls as a result of its efforts to combat robocalls. 

“We have been driving adoption of STIR/SHAKEN, an industry-wide effort that helps verify that a call is in fact from the number displayed on the Caller ID and not spoofed,” the company said. “And we recently confirmed that we met the Federal Communications Commission’s (FCC’s) industry mandate to sign calls with STIR/SHAKEN.” 

Verizon’s updated Call Filter app is available now for Android and iOS

Verizon has updated its free Call Filter app with a “Neighborhood Filter” to cut down on the number of scam calls customers receive from numbers with their...

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Major phone carriers confirm they’ve met the FCC’s mandate on robocall protection

Chalk one up for AT&T, T-Mobile, and Verizon in the fight against robocalls. On Wednesday, the phone carriers stated that they are now fully compliant with the Federal Communication Commission’s (FCC) anti-robocall STIR/SHAKEN protocol. Wednesday was the deadline for major phone carriers to make sure the new protocol was in place.

Going forward, there will be some awfully sad scam artists trying to hoodwink consumers into buying extended warranties and soliciting illegal solicitations. Within the U.S. wireless segment, AT&T, Verizon, and T-Mobile have nearly 270 million subscribers who are now supposedly out of reach of robocallers.

Add to that customers who use other carriers. As an example, T-Mobile provides STIR/SHAKEN implementations with AT&T, Comcast, Spectrum Voice from Charter Communications, and UScellular. Verizon Wireless does the same with Altice USA, Bandwidth, Brightlink, Clear Rate, Google Fi, Inteliquent, Intrado, Magicjack, Peerless, and Twilio.

What does STIR/SHAKEN mean and how does it work?

STIR/SHAKEN are acronyms for the Secure Telephone Identity Revisited (STIR) and Signature-based Handling of Asserted Information Using toKENs (SHAKEN) standards. 

In simple terms, what that means for consumers is that any call coming through a phone network would have its caller ID "signed" as legitimate so that anyone getting a call knows it’s a real person, not a robocaller, on the other end.

"It's great that the largest carriers are finally doing more to protect their customers. Frankly, most providers could have done more years ago, but here we are. Let's celebrate where we're at,” Teresa Murray, Consumer Watchdog, at the Public Interest Research Group told ConsumerAffairs.

Robocalls are still a threat

Murray said consumers shouldn't think that all illegal robocalls are going to magically stop overnight. The reason is because the majority of phone calls pass through multiple networks. 

“Think of it like a relay race, with the baton being handed to the next runner. Most calls get handed off to more than one carrier. So unless every part of the network is using the required caller ID verification, it's possible for some illegal robocalls to slip through,” she said.

ConsumerAffairs asked Murray what consumers can do to add a further layer of protection against getting scammed by a robocall. Here’s what she offered:

  • Never confirm or provide personal information to any caller you weren't expecting. Not your name, your ZIP code, your shoe size ... Nothing. If you think the call could be legitimate, call the company back at a number you look up independently.

  • Don't be fooled by what the caller ID says. Bad guys can still spoof their numbers to look like it's a local call or coming from a known business.

  • If you do pick up the phone and realize it's an illegal robocall, just hang up. Don't push any buttons to be taken off their call list. Pressing buttons just confirms that they've reached a live person.

  • Don't be tricked if a caller knows your name, address, family members' names, or even your Social Security number. All of this information was exposed for half of the adult population in the Equifax data breach of 2017.

  • Don’t provide your full name on your voicemail message. There’s no sense in giving a scammer more information than they may have had already.

  • Never pay bills or debts with gift cards. Period. Full stop. Gift cards are for gifts or to make a purchase for yourself. No legitimate operation accepts gift cards to pay for an obligation.

  • If someone calls you and says you’re supposedly a victim of fraud, or you’re behind on taxes, or your grandchild is in jail, call someone you trust before you do anything. Just saying what’s going on out loud can help someone realize it’s a scam.

  • Register all of your phone numbers with the federal Do Not Call Registry. It won't stop most illegal calls because con artists generally don't care whether they break the rules. However, your ability to lodge a report about the call with state or federal officials can start with showing that the caller violated the DNC List.

  • Report illegal robocalls or DNC List violations to the FTC. You should note the number on your Caller ID and any number left on the message that you’re supposed to call back. You should also report illegal calls to your state attorney general.

Lastly, Murray recommends that consumers contact their carrier if they feel like they’re getting an abundance of robocalls. You can ask whether the company is compliant with STIR/SHAKEN protocols and see what else can be done to stop the unwanted calls. 

“I'd recommend people use the terminology 'STIR/SHAKEN' because the carriers know darn well what you're talking about and they can't dodge your question with some fluffy, ambiguous answer about how much they focus on their customers,” Murray said.

Chalk one up for AT&T;, T-Mobile, and Verizon in the fight against robocalls. On Wednesday, the phone carriers stated that they are now fully compliant wit...

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Is one phone company the best? ConsumerAffairs reviewers are divided

By now, just about everyone on the planet has a cell phone or smartphone. For wireless companies like AT&T, Verizon, and T-Mobile to gain new subscribers, they usually have to take them from their competitors.

All three companies offer generous sign-up incentives and make boasts about their coverage area, but is one of these companies better than the others? When we checked the overall ratings ConsumerAffairs reviewers gave the big three, we found that not a lot separates them in their customers’ eyes.

Based on 693 reviews, ConsumerAffairs reviewers give AT&T a rating of 3.2 stars. It’s slightly ahead of Verizon, with 3 stars based on 961 reviews. Both trail the newly combined T-Mobile and Sprint entity with 3.3 stars, based on 704 reviews.

With the big three virtually neck-and-neck, we decided to do a deep dive into the reviews to see what reviewers like and dislike about the companies and see if any themes emerge.

AT&T

Farhad, of Seattle, was a very unhappy AT&T customer when he posted a 1-star review to our site in April.

“After almost 18 years with AT&T wireless service, I am forced to cut the tie,” Farhad wrote. “The reason is pretty simple. It is due to their poor customer service, un-helpful management and not to mention their outrageously high service rates. While their service is ok, their agents mislead customers to add plan that supposedly would reduce my monthly cost, instead it went up.”

There are several 1-star reviews in which the main grievance was a promotion not living up to how it was presented. While it’s possible that customers misunderstood how it worked, it does suggest that the pitches often lead to misunderstandings.

“I transferred cellular service from Verizon wireless August 5, 2020, enticed by a $700 offer to trade in my and my wife’s cell phones and port our numbers to AT&T wireless,” James, of Covington, Georgia, wrote in a ConsumerAffairs post. “The offer was supposed to go into effect 60 days from the date I signed up. I have made numerous attempts to get AT&T to resolve this issue, they even gave me a case number and promised it would be taken care of by January 4, 2021. I am getting the runaround but not the credits for moving my services to AT&T.”

But Sonia, a reviewer from Houston, gave AT&T a 5-star review after she switched from another company.

“I have great service,” she wrote. “I used to have another provider but I used to lose signal all the time and it wasn't cheap. So now with my provider, I have service and haven't had any issues on signal or anything. Plus I get my devices and on a way that I can afford to pay. Am happy with it.”

Patricia of Warrenville, Illinois, found something to complain about even as she gave AT&T a 5-star review.

“I love the service, have never had any problems,” she wrote. “Very few calls dropped. However, I do feel their plans are expensive compared to others. Customer service is also good. Selection of phones is very good.”

Verizon

Verizon has its share of 1-star reviews, with common problems being mistakes on bills and issues with customer service. Charles, of Clarks Summit, Pennsylvania, said he liked the coverage area Verizon provided but finally couldn’t put up with the level of customer service he received.

“It is impossible to get through to a person who can actually do something about Verizon's mistakes,” Charles wrote. “And when you try it will eat up gobs of your time and leave you frustrated and defeated.”

Charles wrote that the last straw was when the company billed him $13,000 instead of his normal $124 a month. He said customer service reps he communicated with agreed it had to be a mistake, but no one could do anything about it. 

Misty, of St. Augustine, Florida, had just the opposite experience. She wrote in a 5-star review that she called Verizon in tears about her bill.

“I spoke with Shantelle,” Misty wrote. “She listened to me cry as I explained my situation. Before anything else she made sure I was ok and spoke to me in a calm voice. Once I was ok she went on to address my issues. So many times she assured me it would be ok. She took care of every single issue and even a few I myself didn't see! I truly felt cared about by the end of our conversation. She definitely changed my feelings.”

There appear to be very few issues with Verizon’s coverage area. Most of the dissatisfaction appears to stem from frustration in trying to resolve some kind of issue with a phone or plan.

T-Mobile

Customer service is a common topic in 1-star reviews of T-Mobile, which recently merged with Sprint. Sometimes we’ll get bad reviews about a particular store from one reviewer, but then we’ll receive a positive review from someone in another city who will praise the local store in a 5-star review. Like the other two major carriers, misunderstandings about plans show up in some T-Mobile reviews.

“T-Mobile ran a promo to receive free phones, via monthly credits for every old phone number ported in,” writes Erick, of St. George, Utah. “The T-Mobile rep confirmed our phones were eligible and ported the numbers for us.”

Erick said the first bill was correct but that the second one included a charge for one of the “free” phones.

“Subsequent follow-up was told we weren’t told, though should have been, that our phones weren’t eligible for the free phone promo,” Erick said.

Rona, of Lancaster, Pennsylvania, gave T-Mobile a 5-star review in which she said she’s happy with both the service and her plan’s terms.

“All unlimited, no slowdowns or sharing for considerably less than any other provider,” Rona wrote in her ConsumerAffairs post. “They are always willing to change us to the best available deal all with no contract. They don't need to lock you in. You stay because your bill is always right, perfect connection anywhere.”

Do your research and choose the best plan for you

When it comes to the big three wireless providers, some consumers have encountered problems while others haven’t. Problems with customer service appear common in all three.

When it comes to selecting a wireless provider, give strong consideration to the monthly cost and the provider’s coverage area where you live. If you are considering a special promotion, make sure you completely understand it and ask questions.

As you do your research, be sure to check out ConsumerAffairs’ guide to wireless services, which also includes reviews for some independent providers.

By now, just about everyone on the planet has a cell phone or smartphone. For wireless companies like AT&T;, Verizon, and T-Mobile to gain new subscribers,...

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LG says it will continue to provide updates for phones for three more years

Earlier this week, LG Electronics announced that it will stop making smartphones by the end of July. While it’s getting out of the smartphone game, the company is reassuring customers that support for its phones won’t cease immediately. 

In a press release posted Thursday, LG said it will provide customers with three iterations of Android operating system updates from the year the device was purchased.

“The three OS update guarantee applies to LG premium phones released in 2019 and later (G series, V series, VELVET, Wing) while certain 2020 models such as LG Stylo and K series will receive two OS updates,” the company stated.

Losing market share

LG’s decision to exit the mobile business was driven by a loss of market share that it experienced over the last several years. A Statista report found that the company’s smartphone shares declined from 15.4 million units in early 2015 to 11.4 million by early 2018.

If you’re wondering why LG is waiting until July to jettison its smartphone division, the answer is that it simply can’t cut ties quite yet. The company said it still has to fulfill contractual obligations with carriers and partners, so consumers will still be able to buy LG smartphones for a little while longer.

Earlier this week, LG Electronics announced that it will stop making smartphones by the end of July. While it’s getting out of the smartphone game, the com...

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LG announces that it will stop making smartphones

Consumers’ choices among Android smartphones are about to get smaller. LG, which has been making mobile phones since 1995, has announced that it will get out of the smartphone business July 31.

Once a major player in the industry, the Korean electronics giant has consistently lost market share over the last decade to the likes of Apple, Samsung, and many other small manufacturers.

LG has steadily lost out to both high-end producers as well as the smaller companies. According to Statista, LG’s smartphone sales declined from 15.4 million units in the first quarter of 2015 to 11.4 million in the first quarter of 2018.

The company said getting out of the smartphone business will allow it to focus on more lucrative business lines, such as making parts for electric vehicles and robots. Its home appliance division, which boomed during the coronavirus (COVID-19) pandemic, will also get more attention.

In addition to smartphones, the company’s consumer products include washers, dryers, and television sets. LG recently introduced its flagship mobile device, the WING 5G, featuring “pro-quality video recording, triple rear cameras, and 5G connectivity.”

The WING 5G carries a retail price of just under $1,000. Meanwhile, competitors like Samsung and Apple are selling their top-of-the-line handsets for $1,100 or more. LG’s low-end smartphones, such as the KG K51, retail for less than $200, making it a low-margin product.

A move to outsourcing

Some industry analysts have pointed out that LG had already begun moving away from smartphones and outsourcing more and more of the production to subcontractors -- squeezing profit margins even thinner.

“The big bosses start to think, ‘Why are we in this business?’ if all we are doing is putting our brand on it,” Tom Kang, a researcher at Counterpoint Research, told The Wall Street Journal.

Other former industry leaders now exist largely in name only. In the early 2000s, Nokia and Blackberry were market leaders. Other manufacturers now make products for both brands.

Consumers’ choices among Android smartphones are about to get smaller. LG, which has been making mobile phones since 1995, has announced that it will get o...

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T-Mobile will automatically send users’ data to advertisers unless they opt out

T-Mobile has quietly updated its privacy policy to state that it will begin sharing customers’ web and mobile app data with companies for third-party advertising on April 26 unless they opt out. 

The change to the carrier’s privacy policy was made last month, but the Wall Street Journal first reported on the update on Tuesday. Under the new policy, users’ web and device usage will automatically be sent to advertisers who will use that information for ad targeting. 

T-Mobile said the change will also apply to Sprint customers. However, business accounts and children’s lines won’t be affected by the change. 

“We’ve heard many say they prefer more relevant ads so we’re defaulting to this setting,” a T-Mobile spokeswoman told the Journal. 

Opting out 

T-Mobile users can opt out of having their data used for targeted advertising by going into the T-Mobile app, visiting the MORE tab, and then tapping “Advertising & Analytics.” From there, users can toggle off the setting that says “Use my data to make ads more relevant to me.” 

Users can also opt out by visiting MyT‑Mobile.com and selecting “Profile, Privacy and Notifications” under the “My Account” dropdown menu. Under “Advertising & Analytics,” toggle off the option that says “Use my data to make ads more relevant to me.” 

Sprint customers can log in to their Sprint account, visit “My Account Preferences,” and scroll down to “All about my account.” Then, they can select “Manage advertising and analytics preferences” and select the line they want to update. Click the “OFF” radio button to end the use of data to make ads “more relevant” to you. 

T-Mobile has quietly updated its privacy policy to state that it will begin sharing customers’ web and mobile app data with companies for third-party adver...

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Smartphone addiction affects nearly 40 percent of college students

Smartphone addiction affects nearly 40 percent of college students, according to a study published Tuesday in Frontiers and Psychiatry. Researchers say that means just as many young adults may be suffering from poor quality or insufficient sleep. 

For the study, researchers asked 1,043 students between the ages of 18 and 30 at King's College London to complete two questionnaires about their sleep quality and smartphone usage. The findings revealed that around 40 percent of the students could be classified as “addicted” to smartphones -- and those students were more likely to report poor sleep quality. 

More than two-thirds (68.7 percent) of students who were defined as smartphone addicts had trouble sleeping, compared with 57.1 percent of those who were not addicted to their device. Those most likely to exhibit addictive behaviors surrounding smartphone usage were those who used their phone after midnight or for four or more hours during the day. 

“Our study provides further support to the growing body of evidence that smartphone ‘addiction’ has a negative impact on sleep”, said Dr Ben Carter, a co-author of the paper and senior lecturer at the Institute of Psychology, Psychiatry and Neuroscience at King’s. “The association is still significant even after adjusting for daily screen time use.”

The study found that people who put down their device more than a hour before they went to sleep were less likely to display an addictive relationship with their phone. 

“Of those that stopped using their device more than an hour before bedtime, 23.8% exhibited addiction, compared to 42% of those stopping less than 30 minutes before bedtime,” the study authors wrote.

Establishing good sleep habits

Because sleep has such strong ties to mental health problems, the researchers say it’s important for young people to create and stick to a good sleep routine. 

“The negative impact of smartphone use on sleep is very concerning from a mental health perspective,” said Dr Bernadka Dubicka, the chair of the faculty of child and adolescent psychiatry at the Royal College of Psychiatrists. “Many young people have struggled with their sleep and mental health during this pandemic and poor quality or insufficient sleep can be both a symptom and a cause of mental health problems.” 

Avoiding smartphone usage -- or any LED spectrum light source -- before bed can help keep melatonin levels (often referred to as the “sleep hormone”) where they should be prior to sleep. 

“Keeping a good sleep routine is vital for young people’s health and wellbeing and young people should try to limit their smartphone use late at night, for example, by charging their phone in a different room to their bedroom,” Dubicka said. 

Smartphone addiction affects nearly 40 percent of college students, according to a study published Tuesday in Frontiers and Psychiatry. Researchers say tha...

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T-Mobile agrees to change wording in its 5G ads

T-Mobile has agreed to stop running ads with unsupported claims about the current state of its 5G network.

The National Advertising Division (NAD) of the Better Business Bureau said T-Mobile’s recent 5G advertising could make customers think that T-Mobile and Sprint’s combined networks have led to the creation of benefits that don’t actually exist yet. 

In the advertisements in question, T-Mobile falsely claims that it has the "the best 5G network," "highest capacity in history," and the "most reliable network," according to the NAD. The NAD said the ads did not “reasonably convey a present-tense message that the aspirational future benefits from T-Mobile are presently available to consumers.” 

The group also took issue with the ad’s depiction of "magenta and yellow beams rapidly shooting from tower to tower, speeding through server rooms across cities and over vast landscapes.” The NAD said the ad is misleading and conveys the “unsupported message that the touted benefits of the merger will be imminently realized by consumers.” 

To clear up any confusion, the group is asking T-Mobile to modify its wording in the ad so that consumers don’t think the benefits of the merger are immediate.

T-Mobile said it “supports the self-regulatory process” and has agreed to dial down exaggerated and presently unsupported claims like, “You’ll get the best 5G network.” 

T-Mobile has agreed to stop running ads with unsupported claims about the current state of its 5G network.The National Advertising Division (NAD) of th...

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Choosing the wrong iPhone 12 plan could cost consumers hundreds extra per year

When the new iPhone 12 hits the streets on October 23, it will be met with a throng of consumers wanting to take one home. 

According to WalletHub’s new 2020 iPhone Survey, 44 percent more Americans are planning to buy a new iPhone compared to 2019 -- and 73 percent more think the new iPhone is worth going into debt for.

Finding the perfect plan for each and every consumer’s pocketbook can be a maddening experience. But the personal finance website found that consumers who spend a little time researching all the plan variations can actually save $933 (or $2,280 over two years), simply by picking the right one.

The best plans

Using its own cell phone calculator, WalletHub did a fair amount of number crunching on what special plans and bonuses providers are dangling in front of a consumer. Here are two of the more impressive differentiators:

  • The best way to get the new iPhone: WalletHub found that the no-contract individual plan from Visible is the best way to get the new iPhone, beating plans from all three major carriers (AT&T, T-Mobile/Sprint, Verizon).

  • Bonus savings: For even more savings, WalletHub’s advice is to keep your old phone. Individuals can save up to $1,690 and families can save up to $2,663.

Words of caution

WalletHub asked technology watchers about some of the pitfalls that consumers should take into consideration when buying a new phone. Here are two that ConsumerAffairs found to be particularly interesting:

How much cheaper must a 2-year agreement be for a cell phone user to sacrifice the flexibility of not having a contract?

“With a 2-year plan, the consumer loses flexibility, for example, in terms of cell phone service plans. The contract may dictate a plan which they wouldn't otherwise choose,” said Qihong Liu, Ph.D., a professor of Economics at the University of Oklahoma.

Liu went on to say that the benefits will likely vary from consumer to consumer. 

“Some choose the contract because they get to have the latest phone without paying the whole cost right away. Others like the contract because it is cheaper,” Liu said. 

To what extent does the secondary market for cell phones (e.g. eBay) alter the price comparison for no-contract plans?

When that question was put to Hemant Bhargava, Ph.D., a professor of Technology Management at the Wharton School, University of Pennsylvania, he had this to say: “Contract plans that provide (or force) a smartphone usually have a price premium to cover the seller’s risk of giving you the phone upfront. So, you’re better off if you can bring your own phone - even if you buy from a secondary source like eBay.”

Rather than worrying about the authenticity and quality of the phone, Bhargava suggests that consumers look for a reliable seller with a high rating history and good reputation. 

“Alternately, there are very high-quality budget phones that cost the same as a used flagship phone and will be just fine for most buyers,” he concluded.

When the new iPhone 12 hits the streets on October 23, it will be met with a throng of consumers wanting to take one home. According to WalletHub’s new...

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AT&T adds new unlimited data plan option

AT&T has announced that it’s giving customers the option to combine different unlimited plans on each line of their account. 

On Monday, the carrier said its new “Unlimited Your Way” program will let customers choose either the Starter, Extra, or Elite unlimited plan for each line instead of requiring all lines to have the same plan. 

"We recognize that individuals have different wireless needs and not all family members want the same rate plan," said David Christopher, executive vice president of AT&T Mobility, in a release. "With the launch of Unlimited Your Way we're making it simple – now customers can pick the best combination of unlimited wireless plans for each family member – all with access to fast, reliable and secure nationwide AT&T 5G included at no extra charge."

Greater flexibility 

The company said that allowing customers to mix and match unlimited wireless plans could result in savings by better accommodating the wireless needs of each line user. 

For example, if a person who works from home went with the Unlimited Extra plan for its hotspot data, another line user could use Unlimited Elite for HBO Max entertainment; another two lines could stay on Unlimited Started if they don’t need those features. That combination would cost $160 per month while keeping everyone on Unlimited Elite would cost $200 per month. 

The three plans on AT&T’s new program for those with multiple lines are the Unlimited Elite, which has up to 100GB of “premium” data for $45; the $35 Unlimited Extra plan, which has up to 50GB of premium data; and the $30 Unlimited Starter, which has up to 30GB of premium data. 

AT&T’s new mix and match unlimited plan option for families is available starting today. 

AT&T; has announced that it’s giving customers the option to combine different unlimited plans on each line of their account. On Monday, the carrier sa...

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Verizon strikes deal to buy Tracfone for $6.25 billion

Verizon has cut a deal with America Movil to acquire Tracfone, the leading stateside prepaid mobile provider in the U.S. The $6.25 billion price tag includes $3.125 billion in cash and $3.125 billion in Verizon common stock. The deal should close sometime in mid-2021.

Thanks to mergers made in the past few years, like the one between T-Mobile and Sprint, the wireless industry has gradually become smaller. The number of players is shrinking, and those that remain are becoming more powerful.

This deal is no different. With the single stroke of a pen, Verizon gains a tremendous amount of prowess from what Tracfone brings to the table. The purchase means Verizon will add another 21 million subscribers under its corporate banner, more than 90,000 retail locations in businesses like CVS, Family Dollar, and BestBuy, and a firm foothold in the value wireless market. The ledger addition is even more impressive since Tracfone raked in $8.1 billion in 2019.

Good news for Tracfone customers

Verizon says that once the acquisition is put to bed, it expects to bring its 4G LTE and 5G networks to Tracfone customers. It also plans to further develop Tracfone’s distribution channels and expand the brand’s market opportunities.

The complete portfolio of Tracfone brands -- Tracfone, Net10 Wireless, SafeLink Wireless, Straight Talk, Page Plus Cellular, GoSmart Mobile, Telcel America, Simple Mobile, Walmart Family Mobile, and Total Wireless -- will also get the benefit of being in the Verizon family.

“Since its launch, Tracfone has developed strong consumer brands and has established itself as a clear leader in the value mobile segment. This transaction firmly establishes Verizon, through the Tracfone brands, as the provider of choice in the value segment, which complements our clear leadership in the premium segment,” commented Ronan Dunne, Executive Vice President and Group CEO, Verizon Consumer Group. 

The deal may also be good news for Tracfone’s employees. Verizon says it will welcome into its fold each and every one of Tracfone’s nearly 850 valuable workers.

Verizon has cut a deal with America Movil to acquire Tracfone, the leading stateside prepaid mobile provider in the U.S. The $6.25 billion price tag includ...

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T-Mobile launches plan to provide free internet to 10 million households

T-Mobile promised last year that it would provide internet connectivity to 10 million underserved student households if its merger with Sprint was approved. Now, the company has outlined its plan to make good on that promise. 

In an effort to close the “homework gap,” the company has opened up applications for its “Project 10Million” plan. T-Mobile has set aside $10.7 billion for the program, which will go toward providing connectivity to low-income families and students who are part of a national school lunch program. 

“Project 10Million gives eligible households 100GB of data per year and a FREE mobile hotspot for 5 years,” the carrier said on its website. “Plus, participating school districts have the option to apply the value of the free program, up to $500/year per student, towards additional data plans based on your students needs.” 

Increasing access to reliable internet

T-Mobile noted that internet connectivity has become even more crucial as many schools have shifted to online learning. 

“Even before the pandemic, more than 9 million of America’s 56 million school-age kids did not have access to reliable internet and could not complete after-school assignments,” the carrier said in a statement. “Now, because of the COVID-19 pandemic, an unprecedented 50 million students are learning remotely. Those without reliable internet connectivity will face an even bigger schoolwork gap as they are unable to participate in any type of online classroom learning.” 

School districts can get more information about Project 10Million or apply for the program here. Once an application is approved, students in the school district can get a free hotspot and 100GB of data over a year, or around 8GB per month. 

T-Mobile promised last year that it would provide internet connectivity to 10 million underserved student households if its merger with Sprint was approved...

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AT&T tells some customers they need to get a new phone to keep receiving service

AT&T has emailed some customers to tell them that they need to replace their device in order to continue receiving service, Android Police reports. 

Thousands of customers received a notice telling them that their device "is not compatible with the new network and you need to replace it to continue receiving service.” 

The notice refers to the fact that the carrier is planning to drop its 3G network. However, AT&T didn’t explicitly mention in the email that consumers’ phones will continue to work until February 2022. That information was reportedly only mentioned in a link within the email. 

The email went on to say that AT&T makes “getting a new device online easy” before naming various fast and free shipping options.

“Someone who just skims over the mail without clicking the red ‘Learn More’ button might conclude they need a new phone right now,” Android Police noted. 

More follow-up needed

In a post on AT&T’s forum, one subscriber asked if the email they received was a scam since it was poorly worded and “sounded fishy.” 

“I just received an email from AT&T that their network is no longer compatible to my device and I must upgrade. First off, this email to me sounded fishy. There was odd letters and numbers in the email address line,” the user wrote. “With this ongoing pandemic unfortunately you have to be very careful what's real and not a scam. Is this legit or no?” 

While the email appears to be legitimitate, Android Police says AT&T should probably follow up with another email “explicitly making clear that genuinely unsupported devices will only stop working in a year and a half, not tomorrow.” 

AT&T; has emailed some customers to tell them that they need to replace their device in order to continue receiving service, Android Police reports. Th...

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T-Mobile unveils ‘Scam Shield’ robocall-blocking initiative

In an effort to curb unwanted robocalls, T-Mobile has announced that it will offer a free scam-blocking service to all T-Mobile, Metro, and Sprint customers. 

The carrier said Thursday that it’s opting to offer the service for free, unlike rival Verizon, which charges many customers $7.99 per month for the service. 

"People are being robbed. People are being scammed," CEO Mike Sievert said on a call with reporters. "This industry shouldn’t be profiting from this phenomenon.” 

T-Mobile’s scam-blocking services are now part of a program called Scam Shield. The service includes free caller ID and call blocking, free enhanced caller ID (which lets people know when an incoming call is “verified”), and a free second “proxy” number to prevent scam calls from coming to personal phone lines. Customers can also change their number if they are getting too many spam calls.

Scam Shield is the first initiative to be taken by T-Mobile since it merged with smaller rival Sprint. 

“Now that Sprint is a part of T-Mobile, we can take on even bigger problems, so today, we’re taking on one of the biggest pain points in wireless — scams and unwanted robocalls,” Sievert said in a press release Thursday. 

He added that the COVID-19 pandemic has only increased the number of scam calls consumers are receiving. 

“Scam Shield has never been more needed than it is right now. Scammers see COVID-19 as an opportunity to take advantage of Americans at their most vulnerable. When we saw that happening, we knew we had to take bold, swift action. With Scam Shield, T-Mobile customers get fewer scam calls, period … and it’s all because of our advanced network.”

In an effort to curb unwanted robocalls, T-Mobile has announced that it will offer a free scam-blocking service to all T-Mobile, Metro, and Sprint customer...

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Verizon rolls out new phone plan discounts for college students

While the spring semester didn’t close out like most college students anticipated, there’s likely to be lots of companies stepping up to make sure the fall semester starts off with a few pluses.

For one, Verizon announced Friday that it’s rolling out a new discount for graduate and post-graduate college students in the United States. To make sure no one’s left out, Verizon is also giving the same deal to undergraduates.

Starting July 2, Verizon’s “discount1” gives students up to $25 off per month. The company is throwing in 12 months of Disney+, along with Apple Music.

“The last couple of months have been challenging for students, and being able to stay connected is crucial for their education. At Verizon, we are committed to supporting student learning at all stages and we are proud to extend our support to college and graduate students as they prepare for success,” said Frank Boulben, senior vice president of consumer marketing and products at Verizon. “This offer will give college students access to our best pricing on the nation’s most reliable network.”

There’s a slight catch...

As with almost every “good deal,” there are some caveats. Actually, with Verizon’s new promotion, there’s several:

  • The new discount is available to new and existing Verizon wireless customers on Mix & Match wireless unlimited plans.

  • The deal only works for Verizon’s Unlimited plans.

  • The “up to $25” is actually $10 for one line and $25 for two.

  • A maximum of two lines can be used.

  • There’s also a technical limitation that caught ConsumerAffairs’ eye. The fine print of Verizon’s deal says that “in times of congestion, your data may be temporarily slower than other traffic.”

To learn more and check eligibility, Verizon wireless customers can visit the company’s website here.

While the spring semester didn’t close out like most college students anticipated, there’s likely to be lots of companies stepping up to make sure the fall...

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T-Mobile offering free service for first responders

T-Mobile’s new CEO Mike Sievert has announced that the wireless carrier’s offer of free service for first responders is now available. 

Members of state and local public and nonprofit law enforcement, fire, and EMS agencies can get ten years of free mobile service through T-Mobile’s “Connecting Heroes” program. 

“We know first responder agencies face tough budget decisions, but they shouldn’t have to decide between critical equipment and wireless services,” T-Mobile said

The carrier has pledged $7.7 billion over the next decade to fund the program for first responders. Those who receive free service will get unlimited talk, text, and 4G / 5G data.

T-Mobile unveiled its plan to offer free service for first responders when it was pushing to receive regulator approval for its merger with Sprint. The carrier has now completed the merger and plans to eliminate Sprint’s brand name by mid-summer. The combined company will operate under the T-Mobile brand name. 

In addition to the Connecting Heroes plan, T-Mobile also plans to offer a $15-per-month Connect wireless plan with unlimited talk, text, and 2GB of data now that the merger has been completed. The carrier has also promised free internet for 10 million households to increase internet access among children in the U.S. and help close “the homework gap.”

T-Mobile’s new CEO Mike Sievert has announced that the wireless carrier’s offer of free service for first responders is now available. Members of state...

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Say goodbye to Sprint -- T-Mobile to eliminate brand name by mid-summer

Goodbye, Sprint? Yep -- T-Mobile is eighty-six'ing its new partner's brand name by mid-summer, according to FierceWireless.

Despite Sprint's 33 years as a telecommunications brand, T-Mobile feels confident that having a single flagship is a smarter move than confusing the market with two brands or running the risk of cannibalizing itself.

T-Mobile hasn't given a specific date for dropping the Sprint name, but reports are circulating that it's likely August 2. 

Out of the gate, the changes consumers will see first are the typical branding resets that happen when one company buys another -- invoices, signage, etc.

As for Sprint customers smitten with their current plans, T-Mobile CEO Mike Sievert promised at an investor event earlier in the week that they can and won't be required to change over…yet. Eventually, T-Mobile would like to see all its customers on the same page to make life easier. 

5G Sprint phones could be an issue

In a recent study by Waveform, 22 percent of T-Mobile and 19 percent of Sprint subscribers were “extremely excited” about the coming of 5G. However, the Sprint side of that equation -- more than 10 million customers -- might not be so excited with the anticipated changes.

The biggest question swirling around is what will happen to the 5G-enabled phones marketed by Sprint in 2019. The complete answer is still in the ether somewhere. 

According to CNET, Sprint's Galaxy S20 phones will be brought along for the upgrade to T-Mobile's ever-expanding 5G network. Older Sprint 5G phones from 2019 will not be getting updates to enable access to T-Mobile's 5G network. However, those phone models will be able to ride on the existing Sprint 5G signal until it, too, is sunsetted.

For owners of the 5G-enabled Samsung Galaxy S10 5G, OnePlus 7 Pro 5G, and LG V50 ThinQ 5G, sorry, but they'll be downgraded to 4G LTE.

Finally, PhoneArena reports that consumers who purchased the HTC 5G Hub should receive a $12.50 monthly credit for the rest of their installment plan. For those who paid full-retail upfront, a one-time $300 bill credit will be applied.

Goodbye, Sprint? Yep -- T-Mobile is eighty-six'ing its new partner's brand name by mid-summer, according to FierceWireless.Despite Sprint's 33 years as...

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T-Mobile finalizes merger with Sprint, becoming nation's third-largest carrier

T-Mobile announced on Wednesday that it has officially merged with Sprint. Under the $23 billion merger, the combined company will operate under the T-Mobile name. 

The completion of the merger follows a long period of debate between the carriers and state attorneys general, who argued that eradicating the fourth carrier would be anticompetitive. However, state officials have withdrawn their opposition to the merger in recent months. New York Attorney General Letitia James said in February that her state would not appeal the merger decision, in part because of the jobs T-Mobile promised to create.

“We are gratified that the process has yielded commitments from T-Mobile to create jobs in Rochester and engage in robust national diversity initiatives that will connect our communities with good jobs and technology,” James said at the time. 

“We hope to work with all parties to ensure that consumers get the best pricing and service possible, that networks are built out throughout our state, and that good-paying jobs are created here in New York.”

Expediting 5G rollout

The merger received approval from a federal judge back in February, with T-Mobile CEO John Legere calling the decision a “huge victory.” He thanked the court for its “thorough review of the facts we presented in our case.” 

“We’ve said it all along: the New T-Mobile will be a supercharged Un-carrier that is great for consumers and great for competition,” Legere said. “The broad and deep 5G network that only our combined companies will be able to bring to life is going to change wireless … and beyond. Look out Dumb and Dumber and Big Cable – we are coming for you … and you haven’t seen anything yet!” 

T-Mobile has argued that joining forces with rival Sprint will pave the way for a faster rollout of nationwide 5G. Earlier this year, T-Mobile promised to unveil “America’s first transformational nationwide 5G network and services” once combined with Sprint. The carrier said the change could “supercharge innovation throughout the U.S. economy.” 

Conditions of the deal

The FCC has been on board with the merger for some time now. Chairman Ajit Pai has expressed optimism that the deal will give the U.S. an edge in the race to deploying 5G.  

“After one of the most exhaustive merger reviews in Commission history, the evidence conclusively demonstrates that this transaction will bring fast 5G wireless service to many more Americans and help close the digital divide in rural areas,” Pai said in an August statement. 

As part of the merger, T-Mobile CEO John Legere has agreed to step down. COO Mike Sievert will take his place. 

The company has also agreed to help establish satellite TV company Dish Network as a fourth major wireless company for the sake of preserving competition. T-Mobile also said it would uphold its previous promise to offer "the same or better rate plans" for three years.

T-Mobile announced on Wednesday that it has officially merged with Sprint. Under the $23 billion merger, the combined company will operate under the T-Mobi...

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FCC to require phone carriers to authenticate calls by 2021

The Federal Communications Commission (FCC) announced on Tuesday that it will require all phone carriers to comply with the STIR/SHAKEN protocol by June 30, 2021 as part of its ongoing effort to shrink the volume of robocalls.

“These rules will further the FCC’s efforts to protect consumers against malicious caller ID ‘spoofing,’ which is often used during robocall scam campaigns to trick consumers into answering their phones,” the agency said in a statement

The STIR/SHAKEN protocol helps combat nuisance calls by allowing phone companies to verify that the caller ID information matches the caller’s actual phone number. 

“Widespread deployment of STIR/SHAKEN will reduce the effectiveness of illegal spoofing, allow law enforcement to identify bad actors more easily, and help phone companies identify calls with illegally spoofed caller ID information before those calls reach their subscribers,” the agency said. 

Robocalls cost consumers millions 

The FCC estimates that fraudulent robocall schemes cost consumers around $10 million annually. FCC Chairman Ajit Pai has said that combatting unlawful robocalls and malicious caller ID spoofing is his number one priority.

“We know that these calls are a major concern of millions of Americans, and scam calls in particular can result in very real financial losses and serious consumer frustration,” Pai said in 2018, when the agency initially began pushing carriers to adopt the protocol. “We are therefore committed to using every resource in our tool box and working closely with private, public, and international partners to combat unlawful robocalls and spoofing.”

Implementing a 2021 deadline for the adoption for the STIR/SHAKEN protocol carries out provisions in the TRACED Act, which was passed by Congress last year. The regulation gave the FCC more authority when it comes to its efforts to combat illegal robocalls. 

FCC Commissioner Jessica Rosenworsel applauded the agency’s latest effort to reduce robocalls but lamented that it wasn’t done sooner in light of the fact that the COVID-19 pandemic appears to be increasing the volume of robocalls

“We are seeing alarming reports of an increase in calls from scam artists hawking fraudulent cures and taking advantage of so many people in so many households who are stuck at home,” Rosenworcel said in a statement. “So, let me state this as clearly as a I can: there should be swift and harsh action holding accountable those preying on the vulnerable during this disaster.”

The Federal Communications Commission (FCC) announced on Tuesday that it will require all phone carriers to comply with the STIR/SHAKEN protocol by June 30...

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Motorola to roll out a remake of the Moto Razr in February

Motorola has announced a February 6 release date for its reboot of the Motorola Razr, a phone that dominated the cell phone universe before Apple released the iPhone in 2007.

The new phone will be available for preorders on January 26, but it isn’t clear if there will be a stampede to get in line. The new phone will sell for $1,500 -- well above the cost of an iPhone 11. Then again, cost might not be such a big headwind.

CNN reports that the company initially planned to release the Razr in early January, but it pushed back the release date because it feared it would not have enough product on hand to meet demand.

The phone can be purchased directly from Motorola and will be available exclusively to Verizon customers, at least in the beginning. The carrier is offering a payment plan of $62.49 a month -- again, well above the monthly payments for an iPhone.

Motorola teased the release in late November, playing on nostalgia for the original Razr. But plenty of industry insiders immediately questioned whether consumers would be that nostalgic, especially at that price point.

Foldable screen

A unique feature of the second-generation Razr is a foldable screen, a concept other manufacturers have struggled with. Samsung stubbed its toe when it introduced the Galaxy Fold, a device that retailed for $2,000. The phone took flak for alleged defective hinges and fragile screens.

This is the second time Motorola has tried to revive the Razr. The last time was 2011 when it introduced the Droid Razr, which failed to generate the anticipated sales.

Motorola has earned a reputation for building a solid phone for an affordable price in recent years. Its Moto Play devices have been very popular among gamers who value the big screens and longer battery life.

Motorola’s most popular phones are the ones with the smallest price tags. The MotoG7 is available for around $300. It features a Qualcomm Snapdragon 632 octa-core processor and an ultrawide 5.7" Max Vision HD+ display. The device is designed for optimal performance for games, movies, and photos, and it also features a 12 MP camera.

Motorola has announced a February 6 release date for its reboot of the Motorola Razr, a phone that dominated the cell phone universe before Apple released...

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Sprint plans to discontinue Virgin Mobile and transfer customers to Boost Mobile

It seems that wireless carrier Virgin Mobile will be going the way of the dinosaurs in less than a month. 

In a recently released FAQ on its site, the company said that Virgin Mobile USA service will be discontinued at the beginning of February. Those who use the service will be transferred to Boost Mobile, which is operated by Sprint. The company said that it has appreciated the loyalty of its customer base and hopes that all users will find great service moving forward.

“To ensure that we offer the best service to our customers, we regularly examine our plans. At this time a decision to discontinue the Virgin Mobile USA service has been made. As we are committed to providing you with great service, we will transfer your account to our sister brand Boost Mobile,” the company stated.

Transferring accounts

When a larger company with a broad customer base goes under, it’s natural for consumers to have some anxiety over how their information and service will be handled. In this case, Virgin Mobile says that switching customers to Boost Mobile should be a pain-free process.

“In most instances, your existing account will be transferred to Boost Mobile with your device, and a comparable or better Boost Mobile service plan at no extra cost to you,” the company said. “You will keep your phone number, and your monthly payment date will remain the same as long as you continue on time payments until the transfer to Boost Mobile is complete.”

Though phone numbers and payment dates should stay stable in most cases, the company’s FAQ does note that certain payment systems like Paypal will be affected by the transfer. For more details on this and other changes, visit the company’s website here.

It seems that wireless carrier Virgin Mobile will be going the way of the dinosaurs in less than a month. In a recently released FAQ on its site, the c...

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RCS messaging goes live for U.S. Android users

Earlier this year, Google announced that it would be upgrading the messaging capabilities of its Android devices by 2020. Now, with time to spare, all U.S. consumers who use these devices will have access to RCS messaging. 

Google’s Senior Director of Product Management Sanaz Ahari tweeted late last week that all U.S. Android users would gain access to RCS starting Monday, though she noted that updates would need to be made to Carrier Services and the company’s messaging app.

When another Twitter user asked when RCS would be available to other countries, Ahari gave a curt “Stay tuned.” 

RCS messaging

RCS -- or Rich Communication System -- has been touted as the next innovation in messaging technology, but it isn’t exactly new. Apple’s iMessage and Facebook’s WhatsApp already include several of its distinguishing features, such as photo and video sharing, group messaging, and location-based functions. 

Back in October, the four major U.S. wireless carriers announced their intention to develop and deploy RCS messaging through the Cross-Carrier Messaging Initiative (CCMI). The goal of the initiative is to ensure that Verizon, AT&T, Sprint, and T-Mobile can meet evolving industry standards when RCS is rolled out more broadly in the U.S. and globally. 

Earlier this year, Google announced that it would be upgrading the messaging capabilities of its Android devices by 2020. Now, with time to spare, all U.S....

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AT&T expands 5G coverage to 10 cities

AT&T has activated its 5G network in ten cities. The faster network is available to consumers with a Samsung Galaxy Note10+ 5G.

“Millions of consumers and businesses across Birmingham, Ala., Indianapolis, Los Angeles, Milwaukee, Pittsburgh, Providence, R.I., Rochester, N.Y., San Diego, San Francisco and San Jose, Calif. market areas can now access AT&T’s 5G network using the Samsung Galaxy Note10+ 5G,” the carrier said in an announcement

AT&T was criticised earlier this year for rolling out a “5GE” network, which stood for “5G Evolution” and was essentially just upgraded LTE. The 5G network that was switched on today is actual 5G that uses low-band 850MHz spectrum technology. It’s similar to the 600MHz network that T-Mobile recently turned on

Nationwide expansion plans

AT&T added that “low-band 5G availability will continue to rapidly expand.” The cities slated to receive the network in the first half of 2020 include Boston, MA; Bridgeport, CT; Buffalo, NY; Las Vegas, NV; Louisville, KY; and New York City, with more to be added throughout the year. 

“We believe 5G technology will be game-changing, and we continue to help drive this next wave of innovation,” said Scott Mair, president of AT&T Technology Operations, in a statement. “We were the first in the U.S. to offer commercial mobile 5G, and this is the next step as we build to nationwide service in the first half of 2020.”

AT&T said its high-band spectrum -- 5G+, which is even faster than 5G -- will be coming at a “later date.” The carrier said 5G+ was designed to “serve high-traffic areas and places like arenas, campuses and more.” It’s currently offered in parts of 23 cities.

A coverage map of the current low-band 5G markets can be viewed here

AT&T; has activated its 5G network in ten cities. The faster network is available to consumers with a Samsung Galaxy Note10+ 5G.“Millions of consumers...

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Judge to hear arguments against Sprint-T-Mobile merger

Lawyers for Sprint and T-Mobile will be in court today, arguing that their proposed merger should be allowed to move forward. The U.S. government has already approved the deal.

But a group of state attorneys general -- all Democrats -- have gone to court to block the merger, which would reduce the number of major wireless providers from four to three. The state officials argue that would harm consumers.

The complaint involves more than reducing the number of wireless companies. The suit contends that as the smaller players, both Sprint and T-Mobile offer packages with rates that are more affordable for low-income consumers. With these companies merging, regulators argue that those low rates will likely go up.

As a condition for approving the merger, the Justice Department required Sprint and T-Mobile to provide assistance to Dish Network so the pay-TV provider can launch a competing wireless service.

Sprint agreed to sell Boost, its prepaid wireless business, to Dish in order to help it get up to speed. Dish would also get a network of towers and billions of dollars in spectrum as part of the deal.

‘Not adequate’

In their complaint, the state officials reject that remedy, arguing that Dish’s wireless network would not be an adequate substitute for what both Sprint and T-Mobile now offer.

At issue is whether there is now a competitive landscape in the wireless industry. Sprint and T-Mobile say there is, noting that other non-traditional providers like Charter and Comcast have recently launched mobile services.

“Millions of Americans rely on mobile devices at work, at home, and to organize their lives. Competition between the mobile companies has resulted in better coverage and cheaper, more reliable service for all of us,” said Massachusetts Attorney General Maura Healey, when the suit was filed in June. 

Year-long investigation

Healey said her office participated in a year-long investigation which concluded that the proposed merger would give the new company the power to raise prices, significantly reduce competition for customers, lower quality, and cost thousands of retail workers their jobs. 

“We are challenging this merger to protect a service that matters to everyone,” she said.

Healey and her colleagues argue that the competition between T-Mobile and Sprint has lowered prices for all mobile phone subscribers. Since 2009, they say the average cost of mobile service in the United States has fallen by roughly 28 percent.

Sprint and T-Mobile, meanwhile, have said they need to join forces because, as individual companies, they lack the financial resources to build out 5G networks to compete with Verizon and AT&T.

If you’re looking for a wireless provider, ConsumerAffairs has gathered thousands of reviews of cell phone companies. You’ll find them here

Lawyers for Sprint and T-Mobile will be in court today, arguing that their proposed merger should be allowed to move forward. The U.S. government has alrea...

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Motorola jumps back in the mobile phone game with a new commitment to quality and 5G

If you asked consumers who they have to thank for their love of mobile phones, most would probably say Apple, or Nokia, or Samsung. Truth be known, though, it’s really Motorola that deserves the nod for creating the world's first commercial handheld mobile phone, way back in 1983.

But, despite all its innovations ranging from bag phones to flip phones and clam phones, Motorola has pretty much fallen off the map in the last few years, losing considerable consumer prowess over the last few years at the hands of Apple and Samsung. 

But, the company says to call off the EMS units because it’s going to try and regain its flagship space

Razr sharp? Better be.

The first box Motorola has checked off is a new Moto Razr, an Android-based foldable smartphone styled after the original Razr.

“The reimagination of the Razr some 15 years after the original isn't just a play on nostalgia, it's a fully formed flip phone with a whole host of fun and functional features,” is how Mike Lowe at PocketLint took to Motorola’s return home. However, he hedged his outlook with a qualifier.

“Sure, the processor isn't the best going, the cameras aren't a particularly prominent feature, and the battery life might well be questionable (we can't say for certain just yet),” Lowe said.

The second -- and maybe more important -- box Motorola hopes to tick is a phone that supports 5G, the highly anticipated technology that will give consumers the fastest service they’ve ever had. Reports say that when the company launches a “premium smartphone” sometime in early 2020, that device will have 5G capability.

None too soon, either

Motorola has taken it on the chin from ConsumerAffairs reviewers, and if Lowe’s comment about the Razr addressing issues with “build quality in a proper and convincing way” is true, then it’s none too soon.

Reflecting on his frustrations with a previous Motorola phone, Mike of Winter Haven, FL wrote that he dreaded turning on his device, “because there are always 20 to 26 updates that need to be made every time I turn it on. It is never endless and it is a pain (in) the butt. So I turned it off forever. I have accomplished what I needed to do and now use it as a doorstop.”

While some consumers having nothing but good things to say about their Moto phones, the company still has some work to do on the customer service end, particularly when things go bad.

“My phone has LED burn for the second time. There (sic) phones are shotty (sic) at best,” remarked David of Orangevale, CA. “They only give options to lose your phone for 10 days or have to redo a new one with a deposit that most people don't get back even after a fight. They need more options for their crappy phones.”

If you asked consumers who they have to thank for their love of mobile phones, most would probably say Apple, or Nokia, or Samsung. Truth be known, though,...

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Sprint overcounted Lifeline subscribers for years, report finds

For years, Sprint failed to keep an accurate count of how many low-income customers it serves through the federal Lifeline program, according to regulatory documents reviewed by The Wall Street Journal

The Journal, which obtained the documents through a public information request, found that an error in how the carrier counted subscriber usage of the Lifeline service during the years 2013 and 2014 caused dormant accounts to be kept live. Subsequently, Sprint was allowed to continue collecting subsidies for those customers. 

In one instance, a customer in Oregon died but her account retained its “active” status for months. The problem was found to be widespread, affecting thousands of accounts across the nation. Sprint discovered the problem, but it never commented on how many subscribers it lost after remedying the issue. 

Sprint’s Lifeline mistakes 

Sprint is facing a separate investigation and a potential settlement with the Federal Communications Commission (FCC). The agency found in September that Sprint improperly collected millions of dollars in federal subsidies for 885,000 Lifeline customers whose accounts had gone dormant. 

The carrier said its error was caused by a 2017 issue affecting the system it used to calculate usage and eligibility for Lifeline subscribers.  

“While the facts make clear that Sprint did make a mistake, it is also clear that Sprint corrected that mistake and cooperated with regulators,” a Sprint spokesman told the Journal, noting that the two incidents are separate and unrelated.

For years, Sprint failed to keep an accurate count of how many low-income customers it serves through the federal Lifeline program, according to regulatory...

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T-Mobile promises three new programs if Sprint merger happens

In an effort to drum up support for T-Mobile’s upcoming merger with Sprint, the carrier has promised to roll out three new programs if the deal takes place. 

At an event on Thursday announcing T-Mobile’s plan to launch 5G in early December, the carrier gave details on three new programs that will join its roster of services if the $26.5 billion merger happens as planned. 

T-Mobile said its “first planned Un-carrier moves for the proposed new T-Mobile” will include new programs that will rely on the new company’s “transformational network.” 

Should the merger take place, the following initiatives would be cleared to move ahead, bringing “accessibility and connectivity to the most deserving and underserved consumers across the country,” according to T-Mobile: 

  • Connecting Heroes Initiative. A pledge to offer free 5G access — including unlimited talk, text, and smartphone data — to every first responder at every public and non-profit state and local police, fire, and emergency medical technician location across the U.S. for the next decade.

  • Project 10Million. A new program designed to “eradicate the homework gap that exists for millions of children by offering free service and hotspots and reduced cost devices to 10 million households around the U.S. over five years.” 

  • T-Mobile Connect. A new $15-a-month phone plan option which T-Mobile says is for “everyone, especially lower-income consumers.”

Combined 5G network

CEO John Legere has been making a case for the merger ever since it was first proposed a year and a half ago, saying that joining forces with Sprint will enable the creation of a “spectacular” 5G network. 

Legere noted on Thursday that the deal “has taken longer to close than we thought it would.” He added that critics of the deal “have yet to realize that what they want is what we want.” The company says that combining T-Mobile and Sprint’s networks will create "ridiculous amounts of network capacity” and will enable the creation of several enticing and competition-increasing programs for consumers. 

“Only the New T-Mobile’s transformative 5G network will FINALLY have the capacity and reach to make the BOLD moves we announced today that are squarely aimed at SOLVING inequities that have huge impacts on our society,” Legere said in a statement. 

The Federal Communications Commission and the Justice Department have each given official approval for the merger. However, the deal is still opposed by 18 state attorneys general who argue that it will harm competition and raise prices for consumers.

In an effort to drum up support for T-Mobile’s upcoming merger with Sprint, the carrier has promised to roll out three new programs if the deal takes place...

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T-Mobile to launch nationwide 5G network next month

T-Mobile CEO John Legere announced Thursday morning that his company’s nationwide 5G network will be activated on December 6. 

The carrier had already launched its 5G network in a few markets, but the nationwide rollout will bring the network to 5,000 cities and towns before the end of the year. Legere says the network will eventually cover 200 million customers and boast speeds ten times faster than current LTE speeds by 2024.

At launch, T-Mobile will only have two devices that are compatible with the 5G network: the Samsung Galaxy Note 10 Plus 5G and the OnePlus 7T Pro 5G. 

Seeking support for merger 

The carrier is marketing its 5G initiative as “5G for Good” and using it as an opportunity to garner support for its upcoming merger with Sprint. 

"This deal has taken longer to close than we thought it would,” Legere said. “Some people are still asking questions -- the right questions. But these people have yet to realize that what they want is what we want.” 

T-Mobile President Mike Sievert said in the announcement that the carrier plans to combine its low-band 600MHz spectrum and its ultra-high mmWave holdings with Sprint's 2.5GHz mid-band signals to create "ridiculous amounts of network capacity." 

“This is something we could never do if the merger doesn't happen,” Sievert added. 

The Federal Communications Commission and the Justice Department have each given official approval for the merger. However, the deal is still opposed by 18 state attorneys general who argue that it will harm competition and raise prices for consumers. 

T-Mobile CEO John Legere announced Thursday morning that his company’s nationwide 5G network will be activated on December 6. The carrier had already l...

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AT&T settles claim that it throttled ‘unlimited’ data plans

AT&T has agreed to pay $60 million to settle a five-year-old complaint by the Federal Trade Commission (FTC), which took issue with the company’s use of the word “unlimited” to describe data plans that reduced data speeds.

In 2014, the FTC alleged that AT&T did not adequately inform consumers who signed up for “unlimited” data plans that their speeds were subject to throttling once they exceed a certain amount of data usage.

The agency levied a $100 million fine that AT&T challenged in court. The two sides have settled on the lower amount of $60 million

“AT&T promised unlimited data—without qualification—and failed to deliver on that promise,” said Andrew Smith, director of the FTC’s Bureau of Consumer Protection. “While it seems obvious, it bears repeating that Internet providers must tell people about any restrictions on the speed or amount of data promised.”

The practice began in 2011

The FTC said it traced the company’s throttling back to 2011 when mobile data was relatively new and networks were smaller. Both AT&T and Verizon marketed fixed amounts of monthly data for a set price.

For a higher price, AT&T offered an unlimited data plan, but the FTC says the company began slowing speeds after customers used as little as 2 gigabytes during a billing period.

A spokesman for AT&T said the company has not used that data management tool “in years” and that it agrees that the FTC’s position is in the best interest of consumers.

That position calls for AT&T and other telecom providers to clearly state that “unlimited” data plans may be subject to slower speeds after a certain amount of data is used.

AT&T’s latest unlimited plans

This week, AT&T introduced three new unlimited data plans that contain no data caps. However, the company disclosed that in areas of high network congestion some data may be slowed.

Under the terms of the settlement, AT&T is not allowed to make any claims about the speed or amount of its mobile data, including that it is “unlimited,” without disclosing any material restrictions on the speed or amount of data. 

The settlement also requires that the disclosures be made in a way that consumers are sure to see them and not buried in the fine print.

“For example, if an AT&T website advertises a data plan as unlimited, but AT&T may slow speeds after consumers reach a certain data cap, AT&T must prominently and clearly disclose those restrictions,” the FTC said in a statement.

As for the $60 million AT&T is paying in the settlement, the FTC says the money will be used to provide partial refunds to current and former customers who signed up for unlimited plans before 2011. Affected consumers will not be required to submit a claim for the refunds. 

AT&T; has agreed to pay $60 million to settle a five-year-old complaint by the Federal Trade Commission (FTC), which took issue with the company’s use of t...

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AT&T to launch new ‘Unlimited’ wireless plans

Starting November 3, AT&T will begin rolling out modified versions of three Unlimited plans. Two new unlimited plans will be offered -- AT&T Unlimited Starter and AT&T Unlimited Extra. 

The cheapest plan, the Unlimited Starter plan (which is replacing the current Unlimited & More plan), starts at $65 for a single line or $35 per line for four lines. The plan has no high-speed data cap -- however, in areas where there is data traffic congestion, the subscriber is subject to having his or her data speed throttled.

The Unlimited Extra plan starts at $75 per month (or $40 per line each month for a family of four) and adds 15GB of mobile hotspot data. It has a data cap of 50 GB per month. 

The third plan that will be offered is called AT&T Unlimited Elite. It will cost $85 monthly, or $50 per line for four lines, and include HBO, higher video streaming resolution, 30GB of mobile hotspot per line, and 100GB of data before it gets throttled.

Rollout begins November 3

The new AT&T Unlimited Starter and AT&T Unlimited Extra plans will launch on November 3, while the AT&T Unlimited Elite plan will be available in the coming weeks. AT&T added that it will “share more information on 5G for consumers” relative to the new plans later this year.

“AT&T remains laser focused on offering the best unlimited options on the nation’s best and fastest network,” David Christopher, general manager, AT&T Mobility said in a statement. “These plans offer incredible value with performance, speed and reliability on the network you deserve.”

Starting November 3, AT&T; will begin rolling out modified versions of three Unlimited plans. Two new unlimited plans will be offered -- AT&T; Unlimited St...

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T-Mobile announces discounted plan for first responders

T-Mobile has announced that it will be offering firefighters, police, and other first responders the same discount it gives military veterans. 

Starting November 1, the Magenta First Responder plan will be open to eligible "state and local law enforcement officers, firefighters and EMS personnel” and their families. First responders can get 50 percent off family lines by enrolling in the plan, which is the same discount the carrier began offering active military members and veterans last year. 

T-Mobile says its military plan saves families over $1 billion annually, and it wants to help first responders “and everyone who counts on them” save just as much while staying connected. 

"At T-Mobile, we're on an unrelenting mission to change wireless for good. With Magenta First Responder, we'll put money right back in the pockets of our nation's first responders and their families," said T-Mobile CEO John Legere in a statement. 

“Magenta Military forced AT&T and Verizon to respond and altogether created a wave of change that we estimate saves military families more than a billion dollars every year,” Legere added. “This is what we do. We spark a reaction. And Magenta First Responder will do the same.”

Four lines for $100 

Those who subscribe to T-Mobile’s Magenta plan can get four lines for $100 with taxes and fees included, which is a savings of $60 off the company’s normal price. A single line costs $55 per month, two lines cost $40 each, and three lines cost $30 each.

The cheaper plan includes the same features offered under the standard Magenta plan, including unlimited texting and data, a basic Netflix subscription, and 3GB of high-speed mobile hotspot connectivity.

To qualify for any of the plans, the first responder must be the account holder and have a valid first responder line. T-Mobile added that, for a limited time, first responders, active duty military, and veterans can also get 50 percent off the latest Samsung smartphones with bill credits.

T-Mobile has announced that it will be offering firefighters, police, and other first responders the same discount it gives military veterans. Starting...

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Major wireless carriers team up to upgrade and replace SMS messaging

All four major wireless carriers have issued a press release saying they are teaming up on a project called the “Cross-Carrier Messaging Initiative” (CCMI). 

Through the initiative, Verizon, AT&T, Sprint, and T-Mobile have agreed to “develop and deploy [a] standards-based, interoperable messaging service” known as Rich Communication Service (RCS) messaging, which may eventually replace standard SMS messaging that consumers use now. The carriers are endeavoring to bring RCS to Android smartphones in 2020. 

The companies said CCMI has been designed with the aim of ensuring that carriers enable the same RCS features that the upcoming industry standard promises. Those features include high-quality pictures and videos, better group chats, and more. 

In the announcement, Verizon said the CCMI service will: 

  • Drive a robust business-to-consumer messaging ecosystem and accelerate the adoption of Rich Communications Services (RCS)

  • Enable an enhanced experience to privately send individual or group chats across carriers with high-quality pictures and videos

  • Provide consumers with the ability to chat with their favorite brands, order a ride share, pay bills, schedule appointments, and more

  • Create a single seamless, interoperable RCS experience across carriers, both in the U.S. and globally

Replacing SMS messaging

RCS has for years been touted as promising replacement for SMS, which could bring features found in iMessage and WhatsApp to texting. However, support among carriers has been limited, and those that have adopted it “sometimes did so without adhering to the international standard for interoperability called the ‘Universal Profile,’ The Verge notes. 

The publication spoke with Doug Garland, the general manager of CCMI, who confirmed that there will be a standalone app for Android phones that supports the standard by next year. Garland added that the CCMI aims to make sure that user chats are “private” and that the app being developed delivers “an experience [customers] can trust.”

All four major wireless carriers have issued a press release saying they are teaming up on a project called the “Cross-Carrier Messaging Initiative” (CCMI)...

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AT&T says a fix for its voicemail outage is being developed

Since October 1, a number of AT&T customers have reported problems accessing their voicemail. An inability to access voicemail has been reported by both iPhone and Android users in several states, including Arizona, California, Colorado, Florida, Indiana, Nevada, and North Carolina.

Android users have complained of seeing error messages when trying to access voicemail while iPhone owners have said they’re experiencing problems accessing Visual Voicemail.

In response to complaints posted in a 40+ page thread on the carrier’s support forums, representatives for the company claimed that the issues stem from a "vendor server problem.” A statement given to The Verge on Wednesday was similarly light on details. 

“A recent software update to some devices may be affecting our customers’ voicemail,” the company told The Verge. “We are working with the device manufacturer to issue a patch to resolve this and apologize for any inconvenience this has caused.”

At this time, no timeline has been given for the deployment of the patch. 

For now, AT&T is advising customers experiencing the issue to either wait patiently for the fix to roll out or have their mailbox rebuilt. The latter move would result in the deletion of any saved messages or messages received during the outage, The Verge noted. 

Since October 1, a number of AT&T; customers have reported problems accessing their voicemail. An inability to access voicemail has been reported by both i...

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Samsung acknowledges fingerprint reader flaw affecting Galaxy devices

Samsung has provided more details on a security flaw affecting some Galaxy devices.

Earlier this week, users reported an issue with the fingerprint reader on Samsung’s Galaxy S10 and Galaxy Note 10 devices. The flaw could potentially let anyone unlock a phone with their own fingerprint. 

Samsung explained on Friday that the bug was caused by an issue with the silicone cases that protect the devices’ screens. The issue made the phone act as if a valid fingerprint had been registered.  

“This issue involved ultrasonic fingerprint sensors unlocking devices after recognizing 3-dimensional patterns appearing on certain silicone screen protecting cases as users’ fingerprints,” Samsung said in a statement. 

A fix is on the way

The company said it plans to release a software patch next week that will fix the issue. In the meantime, users are urged to refrain from using front screen protective covers in order to ensure “optimum fingerprint scanning.” 

“To prevent any further issues, we advise that Galaxy Note10/10+ and S10/S10+/S10 5G users who use such covers to remove the cover, delete all previous fingerprints and newly register their fingerprints,” Samsung said. 

After the update is released and installed, Samsung says users should plan to scan their fingerprint “in its entirety, so that all portions of your fingerprint, including the center and corners have been fully scanned.”

Samsung has provided more details on a security flaw affecting some Galaxy devices.Earlier this week, users reported an issue with the fingerprint read...

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FCC gives formal approval to T-Mobile/Sprint merger

The Federal Communications Commission (FCC) on Wednesday gave its official approval to the merger between T-Mobile and Sprint, voting 3-2 to approve the deal. The vote was split along party lines, with the FCC’s two Democratic Commissioners voting against the $26.5 billion acquisition, Reuters noted. 

Democratic Commissioner Jessica Rosenworcel reiterated her concerns about the takeover in an op-ed for The Atlantic, saying that the deal would reduce the number of major wireless carriers in the U.S. to three. In a piece published Wednesday morning, Rosenworcel argued that the merger would negatively impact competition and increase prices for consumers. 

“These state officials understand something fundamental: With less competition, rates rise and innovation falls. All the evidence demonstrates that this holds true in the mobile-phone industry too,” Rosenworcel wrote. “If this merger succeeds, consumers will pay the price.”

Geoffrey Starks, the other Democratic Commissioner who voted against the merger, said that last month there was “no credible way that the merger before us can proceed” until Sprint could be investigated for allegedly misappropriating Lifeline subsidy funds for around 885,000 consumers who weren’t active subscribers of Sprint’s service. 

Republican Commissioners vote in favor

In contrast to the Democratic board members, FCC Chairman Ajit Pai has said that he’s fully on board with merger, which was approved by the Justice Department over the summer. 

Pai says the deal will support two of the FCC’s top priorities of “closing the digital divide in rural America and advancing United States leadership in 5G.” T-Mobile has promised to build out rural broadband and 5G, sell its Boost prepaid brand, and keep prices on hold for three years. 

The other Republican commissioners, Brendan Carr and Michael O’Rielly, have also said they support the takeover and voted to approve the deal. 

Opposition from states

The deal still faces opposition from a bipartisan group of state attorneys general, who have filed a lawsuit seeking to block the so-called “anticompetitive megamerger.” 

The states involved in the suit are New York, California, Texas, Colorado, Connecticut, Hawaii, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, Oregon, Virginia, Wisconsin, Pennsylvania, and the District of Columbia. 

Neither the DOJ or the FCC will close the merger until the suit is resolved. 

The Federal Communications Commission (FCC) on Wednesday gave its official approval to the merger between T-Mobile and Sprint, voting 3-2 to approve the de...

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Economists speak out against T-Mobile merger with Sprint

In the eleventh hour, opponents have emerged to object to T-Mobile’s proposed merger with Sprint.

The Justice Department signed off on the merger in July but opponents haven’t stopped their campaign against it. But the government’s approval came with a complicated set of requirements aimed at transforming Dish Network into a wireless operator.

The Justice Department approved the merger over the summer when it concluded that Dish would build a low-cost network that would take the place of Sprint.

But a group of seven economists and antitrust experts say the court should reject the DOJ’s proposed solution, calling it “doomed to failure” and “a remedy that does not meet the standard of restoring the competition currently provided by Sprint.”

The seven economists say that for the next seven years, anyone signing up for Dish Network service will be getting rebranded T-Mobile service, which the economists contend is not actual competition.

The economists argue that it’s not even a sure bet that Dish will ever actually build its own network -- and even if it does, it’s all but certain that network won’t reach as many people as Sprint.

Last-minute attempt

The economists’ filing is a last-minute attempt to convince the court to block the government’s approval of the merger before it takes effect. The proposed settlement has to be approved in court as serving the public interest.

For T-Mobile, the stakes couldn’t be higher. If the court determines the merger doesn’t serve the public interest, it could have to start all over again.

The economists who signed the letter urging the government to block the deal says the facts are on their side. Hal Singer, an economist at Georgetown University, says the government needs to prove that reducing the number of wireless carriers from four to three won’t harm consumers.

In the eleventh hour, opponents have emerged to object to T-Mobile’s proposed merger with Sprint.The Justice Department signed off on the merger in Jul...

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AT&T wants to sell its assets in Puerto Rico and the Virgin Islands

AT&T, deeply in debt after a series of acquisitions, has agreed to sell its assets in Puerto Rico and the U.S. Virgin Islands.

The telecom giant says it plans to sell both its wireless and wireline networks for $1.95 billion to Liberty Latin America. The deal requires the approval of U.S. regulators.

Presumably, AT&T would use money from the transaction to pay down some of its debt from the purchase of DirecTV and Time Warner. But the sale would reduce the debt only slightly since AT&T’s long-term debt totaled $159 billion at the end of the second quarter.

The proposed transaction includes network assets, including spectrum; real estate and leases; customers, including 1.1 million wireless subscribers; and contracts. At close, approximately 1,300 current AT&T employees will move to Liberty Latin America. 

“I’m proud of AT&T’s history in Puerto Rico and the U.S. Virgin Islands,” said Jose Davila, AT&T vice president-general manager for the region. “I’m especially proud of our network and the recent network enhancements that have helped AT&T rank as the fastest network in Puerto Rico.”

Closing in mid-2020

The proposed sales agreement would provide AT&T $1.95 when the deal closes. AT&T said if the Federal Communications Commission and the Justice Department agree, the deal could close within six to nine months.

AT&T, which is one of the two largest wireless providers in the U.S., has been looking for ways to reduce its massive debt. It has previously stated that it plans to cut its debt by $20 billion in 2019.

Earlier this year AT&T sold its interest in Hulu, a popular streaming service, pocketing $1.43 billion in the deal. It also spun off some real estate, getting approximately $2.2 billion for WarnerMedia’s Manhattan offices.

Continuing its plan to reduce its debt, AT&T said it plans to use free cash flow after dividends to continue to monetize initiatives. With the completion of this deal, the company says it will have increased monetization efforts this year by more than $11 billion.

AT&T;, deeply in debt after a series of acquisitions, has agreed to sell its assets in Puerto Rico and the U.S. Virgin Islands.The telecom giant says i...

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FCC finds Sprint wrongly collected millions from 885,000 consumers

The Federal Communications Commission (FCC) announced on Tuesday that it has opened an investigation into Sprint after finding that it improperly collected millions of dollars in federal subsidies. 

The funds were taken in through the FCC’s Lifeline program, which helps low-income consumers with a $9.25 monthly subsidy on phone and broadband services. Sprint argues that the money in question was collected due to confusion about a rule change that occurred in 2016. 

FCC Chairman Ajit Pai called it “outrageous” that the funds were taken from roughly 885,000 consumers who weren’t active subscribers of Sprint’s service. The FCC said Sprint disregarded its “non-usage rule,” which requires Lifeline providers to de-enroll subscribers who don’t use their phones. 

“Lifeline is an important component of our efforts to bring digital opportunity to low-income Americans, and stopping waste, fraud, and abuse in the program has been a top priority of mine since I’ve been at the Commission,” Pai said in a statement

“It’s outrageous that a company would claim millions of taxpayer dollars for doing nothing. This shows a careless disregard for program rules and American taxpayers,” he said. “I have asked our Enforcement Bureau to investigate this matter to determine the full extent of the problem and to propose an appropriate remedy.” 

Collected in “error”

In statements to the media, Sprint claimed the subsidy payments were collected in error after a rule change regarding how usage and eligibility for Lifeline subscribers must be calculated went into effect.

“While immaterial to Sprint’s financial results, we are committed to reimbursing federal and state governments for any subsidy payments that were collected as a result of the error,” a company spokesperson said. 

Sprint noted that it immediately reported the error to the FCC and state regulators. 

“When the error was discovered, we immediately investigated and proactively raised this issue with the FCC and appropriate state regulators. We also engaged an independent third party to review the results of our review and the effectiveness of our operational changes,” the spokesperson added. 

Possible impact on merger with T-Mobile

The FCC had previously expressed its support of Sprint’s plan to merge with T-Mobile, but FCC Commissioner Geoffrey Starks said Sprint’s mistake “directly impacts” the agency’s views on the matter. 

In a statement, Starks said the alleged misconduct “amounts to corporate malfeasance” if found to be true. 

“There is no credible way that the merger before us can proceed until this Lifeline investigation is resolved and responsible parties are held accountable,” he said. “Without the benefit of the findings of this investigation into what appears to be the worst case of Lifeline violations in FCC history, it is impossible for us to trust in the integrity and completeness of the record, evaluate the character and fitness of the applicants, and exercise our statutorily defined obligation to grant only license transfers that serve the public interest.” 

The Federal Communications Commission (FCC) announced on Tuesday that it has opened an investigation into Sprint after finding that it improperly collected...

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T-Mobile is increasing rewards to customers using the new Apple Card

T-Mobile has just offered another reason to have the new Apple Card. The wireless carrier says it will provide up to 3 percent cash back on in-store purchases when customers pay with Apple’s new credit card.

As an added bonus, T-Mobile says it will also give back 3 percent for one-time bill payments if made in T-Mobile stores and paid with the Apple Card with Apple Pay.

“T-Mobile’s iPhone offer just got better,” the carrier said in a blog post. “On top of 50 percent off the latest iPhone 11, iPhone 11 Pro and iPhone 11 Pro Max with eligible trade-in, customers can also receive 3 percent Daily Cash for all purchases, including the new iPhone, the new Apple Watch Series 5 and the new seventh-generation iPad, when they use Apple Card with Apple Pay in T-Mobile stores.”

Apple rolled out its new credit card last month. Like many regular credit cards, it doesn’t have an annual fee and it offers 3 percent cash back on Apple purchases and 1 percent on all other purchases. 

The card got a rather lukewarm reception from personal finance experts who note that most cards now don’t charge an annual fee and offer rewards as generous or more than what the Apple Card pays. Deals with vendors like T-Mobile, however, may change that narrative.

‘All about giving value’

“We’re all about giving customers the best value in wireless, and we’re doing it again by offering 3 percent Daily Cash on Apple Card,” said John Legere, CEO of T-Mobile. “More options. More value. And cash back, including on Apple’s newest products. It’s just the Un-carrier way.”

Starting today, any customer will receive 3 percent Daily Cash for all purchases at T-Mobile, including the new iPhone 11, iPhone 11 Pro and iPhone 11 Pro Max, the new Apple Watch Series 5 and the new seventh-generation iPad, as well as one-time bill payments when they use Apple Card with Apple Pay in T-Mobile stores.

T-Mobile’s iPhone customers can apply for the Apple Card through the Wallet app on iPhone and start using it right away with Apple Pay in stores, in apps, and on websites.

T-Mobile has just offered another reason to have the new Apple Card. The wireless carrier says it will provide up to 3 percent cash back on in-store purcha...

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Pennsylvania AG joins effort to block T-Mobile/Sprint Merger

Pennsylvania Attorney General Josh Shapiro has announced he will add his name to the list of states lobbying to block T-Mobile’s merger with Sprint, bringing the total number of state attorney generals who have expressed their opposition to the merger to 18. 

In a statement published Wednesday, Shapiro pledged his commitment to protecting Pennsylvanians’ access to “affordable, reliable wireless service.” 

“The merger between T-Mobile and Sprint would severely undermine competition in the telecommunications sector, which would hurt Pennsylvanian consumers by driving up prices, limiting coverage, and diminishing quality,” he said. “I’m proud to stand with my colleague Attorneys General in opposing this merger and advocating on behalf of Pennsylvania consumers.”

Growing list of opponents

Shapiro joins the following other states in seeking to block the “anticompetitive megamerger”: New York, California, Texas, Colorado, Connecticut, Hawaii, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Nevada, Oregon, Virginia, Wisconsin, and the District of Columbia. 

In July, the Department of Justice approved the merger on the condition that the carriers sell some of their assets to Dish Network. The Federal Communications Commission (FCC) has also said it supports the deal. 

However, pushback from so many state attorneys general threatens to derail the merger of the nation’s 3rd and 4th largest mobile wireless networks. State officials argue in the suit that the merger will harm competition and raise prices for consumers. Following news that the deal had received DOJ approval, New York AG Letitia James reiterated her concerns on Twitter. 

“I remain deeply concerned about the T-Mobile/Sprint megamerger & the irreparable harm it will cause to millions across the country,” she wrote. “Despite approval from the DOJ, the deal is bad for consumers, innovation, and workers.” 

Pennsylvania Attorney General Josh Shapiro has announced he will add his name to the list of states lobbying to block T-Mobile’s merger with Sprint, bringi...

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New York City sues T-Mobile over ‘abusive sales tactics’

New York City is suing T-Mobile, accusing the wireless carrier of violating consumer protection laws a total of 2,200 times in various parts of the city, Reuters reports.

In its complaint, New York City's Department of Consumer and Worker Protection (DCWP) claims that T-Mobile engaged in “pervasive” illegal sales tactics at 56 of its Metro by T-Mobile stores. 

The city says it has evidence that the carrier sold used or reconditioned phones as new and tacked on taxes that were excessive or appeared to be “made up.” The complaint also accuses T-Mobile of getting customers to e-sign leasing contracts without informing them of the charges or requesting their consent. 

In one case, a customer thought she had purchased a phone advertised at $599 but later learned that she had unwittingly signed up for a 12-month lease costing $2,191.30. 

“With this scheme in place, Defendants have deceived NYC consumers about things as basic as the actual price of the phone to things as complicated as the terms of financing,” the complaint states.

In a statement, T-Mobile said it’s looking into the allegations as they appear to be “at odds with the integrity of our team.” 

Separately, New York is fighting to prevent T-Mobile’s $26.5 billion merger with Sprint. The state’s attorney general, Letitia James, is leading a group of states in suing to block the deal, which she argues is “bad for consumers, bad for workers, and bad for innovation.”

New York City is suing T-Mobile, accusing the wireless carrier of violating consumer protection laws a total of 2,200 times in various parts of the city, R...

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FCC circulates draft order to approve T-Mobile/Sprint merger

On Wednesday, Federal Communications Commission (FCC) Chairman Ajit Pai made his approval of the T-Mobile/Sprint merger official. 

Although critics have argued that allowing the two carriers to join forces would reduce competition in the industry, Pai contends that the deal would help promote competition, expedite the nationwide deployment of 5G, and help shrink the digital divide. 

“After one of the most exhaustive merger reviews in Commission history, the evidence conclusively demonstrates that this transaction will bring fast 5G wireless service to many more Americans and help close the digital divide in rural areas,” Pai said in a statement. 

The conditions included in the FCC’s draft order would “promote robust competition in mobile broadband, put critical mid-band spectrum to use, and bring new competition to the fixed broadband market,” the Republican commissioner added.

“I thank our transaction team for the thorough and careful analysis reflected in this draft Order and hope that my colleagues will vote to approve it,” he continued. 

Help with 5G deployment

Pai, who signaled his intention to approve the deal back in May, believes that if T-Mobile and Sprint become one company, the combined entity will be in a better position to compete with rivals in the effort to launch 5G. 

“Consumers will directly benefit from improvements in network quality and coverage, which in turn will foster innovation in a wide variety of sectors and services (itself creating significant public interest benefits),” the FCC said in a statement. “Moreover, the transaction will help to close the digital divide by bringing robust 5G deep into rural areas, with enforceable conditions in the draft Order requiring coverage of at least 99% of Americans within six years.”

Following months of skepticism over the merger, the Department of Justice (DOJ) gave its approval of the $26.5 billion deal last month on the condition that Sprint sell its prepaid assets to Dish network. The DOJ said the new agreement will "enable a viable facilities-based competitor to enter the market.” 

The merger is still opposed by more than a dozen state attorneys general. These officials argue that the merger will harm competition and raise prices for consumers. Democratic FCC commissioner Jessica Rosenworcel also said she’s still “not convinced that removing a competitor will lead to better outcomes for consumers.” 

“But what I am convinced of is that before the FCC votes on this new deal negotiated by Washington, the public should have the opportunity to weigh in and comment. Too much here has been done behind closed doors,” she said in a statement regarding the FCC’s draft order.

On Wednesday, Federal Communications Commission (FCC) Chairman Ajit Pai made his approval of the T-Mobile/Sprint merger official. Although critics have...

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States still working to block T-Mobile/Sprint merger

Last week, the $26.5 billion merger of T-Mobile and Sprint gained approval from the Department of Justice. However, the deal -- which hasn’t yet closed -- still faces opposition from close to a dozen state attorneys general.

A lawsuit filed by these officials argues that the merger will harm competition and raise prices for consumers. Following news that the deal had received DOJ approval, New York AG Letitia James reiterated her concerns on Twitter. 

“I remain deeply concerned about the T-Mobile/Sprint megamerger & the irreparable harm it will cause to millions across the country,” she wrote. “Despite approval from the DOJ, the deal is bad for consumers, innovation, and workers.” 

“This deal is based on speculative promises & will increase prices for consumers & greatly reduce competition. The American people deserve access to affordable, reliable wireless service & this deal is not the answer.”

At a status hearing on Thursday, the states involved in the suit aiming to block the deal plan to ask for the October 7 start date of the merger trial to be pushed back to December 9. State AGs argue that they are owed more time to prepare since T-Mobile and Sprint didn’t provide all the details of their settlement with the DOJ by the deadline of June 28. 

EFF also opposes the deal 

Separately, the Electronic Frontier Foundation (EFF) chimed in on Tuesday to express its opposition to the merger. In a statement, the organization raised the concern that “5G hype” could have clouded the DOJ’s judgement when choosing to green-light the deal. 

“The Sprint-T-Mobile merger has been the subject of a lot of 5G hype,” EFF said. “EFF has called attention to the political leveraging of 5G before, and this merger is the perfect example of how it can be weaponized to blow holes in consumer protection laws.” 

“From the outset, Sprint and T-Mobile repeatedly over-represented, claiming the merger would bring 5G wireless services to all Americans. The companies’ argument is that Americans must accept fewer choices at higher prices if they want to see these new services. This is just untrue.” 

Like the state attorneys general involved in the effort to block the merger, EFF argues that the deal is anticompetitive. The group says 5G could still reach all U.S. consumers through “government-regulated licenses” that promote competition.

“Those licenses can be modified with new policies to promote competition and access. In particular, instead of approving anti-competitive mergers, the government could simply change the terms of the licenses it gives companies for their use of spectrum, the radio frequencies used to transmit services,” the group said. 

Last week, the $26.5 billion merger of T-Mobile and Sprint gained approval from the Department of Justice. However, the deal -- which hasn’t yet closed --...

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Spansive recalls wireless phone chargers

Spansive of San Bruno, Calif., is recalling about 950 Spansive Source wireless, multi-phone chargers.

Metallic accessories attached to phones placed on the chargers can overheat while phones charge, posing a burn hazard to users.

The firm has received one report of a metallic phone accessory overheating when placed on the charger. No injuries have been reported.

This recall involves Spansive Source wireless multi-phone chargers capable of powering up to six phones simultaneously, four wirelessly and two more via USB ports located at the base of the charger.

The recalled chargers were sold in both white and charcoal colors, each with a green label at the bottom. “Spansive” is printed on the chargers.

The chargers, manufactured in China, were sold exclusively online at Spansive’s website www.spansive.com for about $200. Only chargers sold on May 23 -- 24, 2019, which are identifiable by a green label on the bottom of the charger, are included in this recall.

What to do

Consumers should immediately stop using the recalled phone chargers and return them to Spansive for a full refund. Spansive is contacting purchasers directly about the recall.

Consumers may contact Spansive at (800) 426-6251 from 9 a.m. to 5 p.m. (PT) Monday through Friday, by email at support@spansive.com or online at www.spansive.com and click on “Spansive Source Recall Notice” at the bottom of the page for more information.

Spansive of San Bruno, Calif., is recalling about 950 Spansive Source wireless, multi-phone chargers.Metallic accessories attached to phones placed on...

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Dish hopes to have 5G wireless going by end of 2020

Now that Dish Network has been set up as a fourth wireless provider in the wake of Sprint and T-Mobile’s merger approval, the satellite TV company isn’t waiting for the ink to dry.

Dish Chairman Charlie Ergen has made clear he plans to push ahead immediately in building out a 5G wireless network, an enormously expensive undertaking. In an interview with Axios just hours after the Justice Department greenlighted the merger, Ergen said he hopes to be providing 5G service in at least one market by the end of 2020.

Dish stepped into the role of wireless provider as a condition for regulators to allow Sprint and T-Mobile to merge because of worries the combination would reduce competition and hurt consumers. Both merger partners provided assets to Dish, including spectrum, to help it get up and running.

Part of the problem facing the satellite TV provider is that it currently has no existing wireless network. It will have to build a 5G network from scratch while its competitors will build on top of their existing 4G LTE networks.

Getting a boost from Boost

Dish is acquiring Sprint’s Boost Mobile as part of the deal and Ergen said one of the first steps the company will take is to make the prepaid service more competitive, even expanding beyond the prepaid market.

The deal approved by the government requires T-Mobile and Sprint to open up dozens of retail locations to Dish, as well as more than 20,000 cell sites. Dish will also get “a seven-year wholesale agreement allowing it to sell T-Mobile wireless service under the Dish brands.”

While that most likely will help, Dish still faces significant challenges in leaping into the wireless business. However, it has strong incentives to do so. Satellites are aging technology and 5G could prove to be a much faster and more efficient way to distribute video programming.

Keeping pace with DIRECTV

Dish competitor DIRECTV is owned by AT&T which is currently building its own 5G network. For Dish to remain competitive it may have to bite the 5G bullet.

Roger Entner, a telecom analyst and founder of Recon Analytics LLC, told Bloomberg News that Dish will likely have to spend at least $20 billion dollars in the short term to build a network that could make use of the massive amounts of spectrum it owns.

And that may be just the beginning. More spending will be needed to establish a retail network and market the new service, competing with the huge ad budgets of Verizon, AT&T, and the newly combined Sprint and T-Mobile.

Now that Dish Network has been set up as a fourth wireless provider in the wake of Sprint and T-Mobile’s merger approval, the satellite TV company isn’t wa...

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Justice Department green-lights T-Mobile/Sprint merger

T-Mobile and Sprint have finally received approval from the Justice Department to move ahead with their $26 billion merger. 

The agency has been clear that its main goal is to preserve competition in the mobile industry. With that aim in mind, the DOJ said it wouldn’t sign off on the deal unless Dish Network replaced Sprint as the fourth major wireless carrier. 

Within the past few days, the companies agreed to sell some assets to Dish and Dish agreed to buy them. Dish will pay roughly $5 billion for Sprint and T-Mobile’s wireless assets, Bloomberg reported Thursday. 

Under the deal, T-Mobile and Sprint will be required to open up dozens of retail locations to Dish, as well as more than 20,000 cell sites. Dish will also get “a seven-year wholesale agreement allowing it to sell T-Mobile wireless service under the Dish brands.”

If T-Mobile and Sprint fail to meet the terms of the agreement, the Justice Department and a handful of state attorneys general offices will file a lawsuit to block the merger. 

Dish as the fourth carrier

After stepping into its role as a fourth major U.S. carrier, Dish says it will start working towards the goal of building a 5G network that will reach 70 percent of the nation’s population by June 2023.

In a statement, the DOJ said the new agreement will "enable a viable facilities-based competitor to enter the market.” 

“Further, the settlement will facilitate the expeditious deployment of multiple high-quality 5G networks for the benefit of American consumers and entrepreneurs,” the Department said, adding that the proposed agreement is open to public comment for 60 days. 

Before the merger can take place, it must receive official approval from the Federal Communications Commission (FCC). The FCC has already said it supports the deal and is prepared to give its approval when the time comes. 

The deal is still opposed by several state attorneys general who argue that it will harm competition and raise prices for consumers.

T-Mobile and Sprint have finally received approval from the Justice Department to move ahead with their $26 billion merger. The agency has been clear t...

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Dish agrees to pay $5 billion for Sprint and T-Mobile assets

The role of satellite company Dish in the proposed merger of T-Mobile and Sprint has been a key sticking point for the Justice Department, which has said it wouldn’t approve the deal unless Dish replaced Sprint as the fourth major wireless carrier.  

Now, Dish has agreed to pay $5 billion for Sprint and T-Mobile’s wireless assets, Bloomberg reported, citing sources familiar with the matter. With that condition agreed upon, the Justice Department could approve the $26.5 billion merger as early as Thursday. 

A new major carrier

Under the deal, Dish will pay $1.5 billion for Sprint's Boost prepaid mobile business and around $3.5 billion for spectrum assets, according to Bloomberg. The company won’t be able to sell the assets for three years, and it will be required to offer cell phone service and will get “a seven-year wholesale agreement allowing it to sell T-Mobile wireless service under the Dish brands.”

With Dish poised to take Sprint’s place as a fourth major wireless carrier, the Justice Department’s condition of preserving competition in the mobile industry will be met. The Wall Street Journal reports that the DOJ is more than likely to approve the deal now that Dish has agreed to step in as a competitor in the industry. The FCC has already said it supports the deal. 

The merger is still opposed by at least ten state attorneys general who argue that it will harm competition and raise prices for consumers.

The role of satellite company Dish in the proposed merger of T-Mobile and Sprint has been a key sticking point for the Justice Department, which has said i...

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The Sprint/T-Mobile merger deadline is a week away

The proposed merger between Sprint and T-Mobile has a week to go before it runs up against a July 29 deadline. Despite a lot of opposition, the deal could be close to approval.

Fox Business reports the Justice Department has informed all parties that barring any last minute issues the U.S. government will likely give its approval before the deadline. But the situation apparently remains fluid.

The network reports negotiators made significant progress last week in resolving some of the issues that thus far have prevented approval. While the two smaller wireless companies have made what some say is a compelling case for their merger, the fact remains there are powerful  groups opposing it.

Democratic lawmakers, joined by labor unions and consumer groups, have urged the Justice Department to block the deal. They point out that the merger would reduce the number of major wireless companies from four to three.

They also maintain that Sprint and T-Mobile tend to be the carriers of choice for low-income consumers because of their lower rates. They worry that if the two smaller companies become one bigger one, those rates will go up.

A new fourth carrier

To ease those concerns the parties have worked toward helping Dish Network create a fourth wireless provider, utilizing assets from both Sprint and T-Mobile. Earlier this month the Justice Department pressed the merger partners to make additional concessions to help Dish’s wireless service get up and running.

Specifically, German telecom company Deutsche Telekom, which would control the two merged wireless providers, was reportedly asked to give up more spectrum for Dish’s new service. More recent negotiations have reportedly been aimed at making sure Dish’s wireless service would be a strong competitor in the U.S. market.

Attorneys general

Democratic state attorneys general are other opponents who must be won over. While they don’t play a regulatory role in approving the merger they have the legal resources to go to court to try to block it. 

At this point, simply delaying the merger might be the same as blocking it. In April, Sprint and T-Mobile announced a July 29 deadline for completing their merger. If that deadline is missed, both parties might simply walk away.

Meeting that deadline now hinges of gaining Justice Department approval. The Federal Communications Commission has already signed off on the deal.

The proposed merger between Sprint and T-Mobile has a week to go before it runs up against a July 29th deadline. Despite a lot of opposition, the deal coul...

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Justice Department may block T-Mobile/Sprint merger if settlement isn’t reached soon

The Department of Justice (DOJ) has been clear that it’s skeptical of the proposed merger of T-Mobile and Sprint. Now, the DOJ is reportedly considering filing a lawsuit to block the $26.5 billion deal if the two telecom providers do not reach a settlement by next week, CNBC reports. 

Citing “people familiar with the negotiations,” CNBC says the DOJ intends to sue to block merger if T-Mobile, Sprint, Dish, and T-Mobile’s parent company Deutsche Telekom can’t reach an agreement on issues that have been holding up the deal. 

In April, the Wall Street Journal reported that the companies had been told by Justice Department officials that the merger was not likely to be approved as structured. The Department has expressed concern that the merger -- which would reduce the number of carriers to three -- could negatively affect competition in the industry and lead to higher costs for consumers. 

Dish Network’s role in question

To assuage the DOJ’s concerns, T-Mobile and Sprint recently agreed to sell the prepaid brand Boost and make Dish a fourth wireless provider to ensure competition in the industry. The DOJ said earlier this month that it was close to approving the deal if the Dish conditions were met.

However, Deutsche Telekom is reportedly concerned that if it allows Dish to use T-Mobile’s new network while Dish builds out its own infrastructure, a cable or technology company could swoop in and buy Dish and use the T-Mobile network. Deutsche Telekom wants Dish to be cut off from the T-Mobile network if it’s purchased by a cable company, but the DOJ has said it’s not willing to allow that. 

The companies had previously announced a July 29 deadline for completing their merger, but they must first gain Justice Department approval. The Federal Communications Commission has already said it supports the deal. 

Now, reports say that if the companies can’t reach a settlement by the end of next week, the Justice Department may sue to block the merger. The ultimatum comes a month after a group of U.S. state attorneys general sued to block the merger on the grounds that it would cost consumers more than $4.5 billion a year. 

The Department of Justice (DOJ) has been clear that it’s skeptical of the proposed merger of T-Mobile and Sprint. Now, the DOJ is reportedly considering fi...

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T-Mobile’s merger with Sprint is looking more likely

The Justice Department (DOJ), which had been highly skeptical of the proposed T-Mobile-Sprint merger, may be getting closer to approving the deal. But if the merger is to get the green light, DOJ says more concessions may be in order.

Specifically, German telecom company Deutsche Telekom, which would control the two merged wireless providers, would have to make concessions, according to a report by CNBC. The Justice Department has reportedly softened its stance on the merger when it was suggested that Dish Network could emerge as a fourth wireless company.

The German company and the Department of Justice are reportedly close to an agreement to give up air space to Dish for a wireless service. If all the details are worked out, sources say a deal could be announced as early as next week.

Dish Network’s role is key

Justice Department sources say the government’s reservations about the T-Mobile merger with Sprint could be addressed by Dish Network emerging as a fourth wireless provider. According to CNBC, the government is taking steps to ensure Dish can emerge as an effective player in the wireless industry.

The government is pressing Deutsche Telekom to be generous with Dish, giving it unlimited access to its network. So far, sources say the two merger partners have resisted those efforts.

Sources have told CNBC that Dish would have limited access to a combined T-Mobile/Sprint network, allowing it access for no more than seven years. After a grace period, Dish would be required to operate on its own network.

Complicating factor

The evolution of 5G service could be a complicating factor. Dish, a cable TV provider, doesn’t have a 5G network but said it plans to build one soon.

But at this point, a deal appears to be more likely than it did a month ago. CNBC reports Dish and T-Mobile have come to a rough agreement on terms, including a revenue-sharing agreement.

Dish may also purchase additional spectrum and prepaid wireless carrier Boost Mobile from the combined Sprint/T-Mobile.

In April, Sprint and T-Mobile announced a July 29 deadline for completing their merger. To meet that date, they have to gain Justice Department approval. The Federal Communications Commission has already signed off on the deal.

The Justice Department (DOJ), which had been highly skeptical of the proposed T-Mobile-Sprint merger, may be getting closer to approving the deal. But if t...

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AT&T wireless users prevented from calling emergency services due to outage

For several hours on Tuesday morning, AT&T wireless customers in a handful of states were unable to call 911 from their cell phones, according to a report from The Verge. The issue was reported by officials in Texas, Minnesota, Wisconsin, Washington, Florida, and several other states.

In a statement, AT&T confirmed the service outage and said the issue had been resolved as of approximately 8:00 AM.

"Earlier this morning some wireless customers may have been unable to connect to 911," the company said. "This has been resolved and we apologize to anyone who was affected."

While the outage was still active, several local law enforcement officials and fire departments used social media as a way of informing AT&T customers of alternate ways of contacting emergency services. 

“Our 911 Comm Center received notice that AT&T is experiencing outages with their mobility wireless 911 that may affect calling in,” tweeted a sheriff’s office in Winnebago County, Wisconsin. “Please have our non emergency number handy if you need us.  920-236-7300” 

A fire department in Arlington, Texas recommended calling from a landline, since the outage didn’t impact AT&T’s landline services. 

“AT&T is experiencing nationwide 911 service outage which is effecting the ability to call 911 on a cellphone,” the Arlington Fire Department tweeted. “Until the issue is resolved, AT&T customers can access Arlington 911 by either calling 817-274-4444 or utilizing a landline.” 

For several hours on Tuesday morning, AT&T; wireless customers in a handful of states were unable to call 911 from their cell phones, according to a report...

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Is the charger you use impacting your phone's battery life?

It’s not uncommon for consumers to be toting around portable chargers or looking for the nearest outlet to plug in their dying phones. But a new study suggests that the type of charger you use could be negatively impacting your device’s battery life.

Researchers discovered that consumers who utilized wireless chargers for their smartphones, known as inductive charging, are more likely to lose battery life faster due to the rapid transfer of heat between the device and the charger. 

Finding the right charger

Wireless charging options have become vastly popular, as both consumers and manufacturers have become enamored with the freedom that comes with ditching a traditional wired charger. 

However, researchers at the University of Warwick say that wireless chargers create a great deal of heat that is generated by both the charger and the device. When phone batteries reach high temperatures, they burn out faster. 

With this information, the researchers conducted an experiment that compared wired chargers to wireless chargers, but there was a catch. 

One of the keys to using wireless chargers is properly aligning the device onto the charger. If they are out of alignment, even more heat is generated and transmitted between the devices, which will cause the battery to die much faster. So, the researchers tested the outcomes of smartphones charged with traditional wired chargers versus those properly aligned on wireless chargers and those misaligned on wireless chargers. 

The researchers utilized all three of the charging methods and did an internal scan of the phones after 50 minutes to see how the different methods affected the phone’s battery life. While wireless changers present tons of convenient factors, whether aligned or misaligned, the phones reached higher temperatures at a faster rate, which ultimately led to shorter battery life. 

Higher temperatures, shorter battery life

When aligned or misaligned on a wireless charger, phones reached over 30 degrees Celsius, whereas devices plugged into a wired charge never passed 27 degrees Celsius. The wireless chargers themselves heated up to over 35 degrees Celsius when the phone was misaligned and 33 degrees Celsius when the phone was properly aligned. 

The researchers did find that phones tended to cool down about halfway through a charging cycle when on a wireless charger; however, when misaligned, it stayed at the peak temperature for much longer. 

The researchers note that work is being done on wireless charging systems to prevent any long-term battery issues, but consumers should know what they’re giving up now for the added convenience. 

It’s not uncommon for consumers to be toting around portable chargers or looking for the nearest outlet to plug in their dying phones. But a new study sugg...

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Four additional states join lawsuit seeking to block T-Mobile/Sprint merger

At a court hearing on Friday, a New York official announced that the state attorneys general of Massachusetts, Hawaii, Minnesota, and Nevada have joined a lawsuit aiming to block the proposed merger of T-Mobile and Sprint.

In early June, nine states and the District of Columbia sued to stop the $26.5 billion deal from taking place. The lawsuit seeks to stop the merger on the grounds that it will harm competition and raise prices for consumers.

“When it comes to corporate power, bigger isn’t always better,” New York Attorney General Letitia James said of the merger, which would shrink the number of nationwide wireless carriers in the United States from four to three.

Arguments against the merger

T-Mobile and Sprint have argued that joining forces is necessary to deploy 5G wireless networks and effectively compete against Verizon and AT&T. The Federal Communications Commission (FCC) has said it intends to approve the merger.

However, lawmakers and labor groups have argued that if the two companies are combined, it would harm competition, raise prices, and lead to over 28,000 lost jobs.

“Millions of Americans rely on mobile devices at work, at home, and to organize their lives. Competition between the mobile companies has resulted in better coverage and cheaper, more reliable service for all of us,” Attorney General Maura Healey told Cape Cod Today.

“Our year-long investigation found that the proposed merger would give the new company the power to raise prices, significantly reduce competition for customers, lower quality, and cost thousands of retail workers their jobs. We are challenging this merger to protect a service that matters to everyone.”

The Department of Justice, which has been hesitant to approve the deal, has requested that T-Mobile and Sprint sell Boost Mobile in order to receive approval. Dish Network is reportedly negotiating the purchase of spectrum and Boost Mobile from the two companies, according to Bloomberg.

At a court hearing on Friday, a New York official announced that the state attorneys general of Massachusetts, Hawaii, Minnesota, and Nevada have joined a...

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Dish Network may pave the way for approval of the T-Mobile-Sprint merger

The old saying “two’s company but three’s a crowd” apparently does not apply to mergers. Dish Network has reportedly emerged as a major player in Sprint and T-Mobile’s bid to become one company.

Bloomberg News quotes people close to the situation as saying Dish is negotiating the purchase of spectrum and Boost Mobile from the two companies that are trying to gain approval of their proposed merger from the Department of Justice (DOJ).

The Antitrust Division at DOJ has reportedly been cool to the idea of Sprint and T-Mobile joining forces because it would reduce the number of major carriers from four to three. Previously, some DOJ officials have reportedly suggested the government go to court to block the merger.

Spinning off assets -- especially those that overlap -- is a common practice among merger partners in the same industry to assure the government that it won’t have monopolistic power.

Approval may be close

According to Bloomberg, DOJ is getting close to flashing a green light for the two wireless providers, with an approval coming as early as this week. The Federal Communications Commission (FCC) has already signed off on the deal, saying the engineering specs appear to be in order.

When Sprint and T-Mobile announced their plan to merge they said they required the synergy of their two companies to build out a 5G network that could compete with Verizon and AT&T. But according to Bloomberg, DOJ approval could hinge on the two proposed partners selling off enough assets that another company could buy them and launch a new wireless service.

Analysts say Dish is a logical player to take up that role because it already has significant spectrum that has gone unused. Taking assets from T-Mobile and Sprint, the reasoning goes, could turn Dish into a major wireless player.

Congressional opposition

While the DOJ may be softening its position toward the proposed merger there is still opposition among elected officials, who fear T-Mobile and Sprint -- both favored by lower income consumers -- would raise their prices if they become one company. Earlier this month, nine states and the District of Columbia filed a suit in U.S. District Court to block the merger.

“I have repeatedly raised serious antitrust concerns about the harmful effects of merging T-Mobile and Sprint, two of the four remaining nationwide wireless carriers,” said Sen. Amy Klobuchar (D-Minn.). “This merger would harm competition and consumers, and I am pleased that action is being taken by state attorneys general to block it. Now, the Justice Department must take similar action to stop this transaction.”

Klobuchar and other lawmakers opposed to the merger say T-Mobile and Sprint are favored by low-income consumers because both offer no contract plans, prepaid and no credit check plans, and unlimited, text, voice, and data plans.

The old saying “two’s company but three’s a crowd” apparently does not apply to mergers. Dish Network has reportedly emerged as a major player in Sprint an...

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New study finds that smartphones are quickly becoming the go-to online device

As the density of Americans owning a smartphone continues to grow -- currently at 87 percent -- the use of those smartphones as the consumer’s go-to digital device is also growing.

However, a new Pew Research Center study discovers that smartphone owners who use a phone as their online connector, use them differently than they might with a regular computer.

If you’re guessing it’s the younger consumer -- the 18-to 29-year-olds -- leading the way, you’d be right. That group’s use is trending from 41 percent in 2013 to 58 percent in 2019. But, the growth is consistent across all demographics. Take the share of adults ages 30 to 49, for instance. Their use of a smartphone to go online has nearly doubled – from 24 percent in 2013 to 47 percent today.

“These trends are part of a broader shift toward mobile technology that has changed the way people do everything from getting news to applying for jobs,” wrote Monica Anderson, a senior researcher at Pew.

“Indeed, mobile devices are not simply being used more often to go online – some Americans are forgoing traditional broadband at home altogether in favor of their smartphone. A majority of adults say they subscribe to home broadband, but about one-in-four (27 percent) do not. And growing shares of these non-adopters cite their mobile phone as a reason for not subscribing to these services.”

Wait a minute

Dropping broadband to do… everything via the phone? Like watch movies, listen to music, and shop everything?

Yep. And there are two simple reasons:

  • For one, smartphones have become so, well, smart, that digital consumers can do everything they want or need to do online. Pew found that the 45 percent who go that route has nearly doubled, many citing the savings from ditching their monthly home broadband subscription. In addition, 80 percent of those non-broadband users say they’re simply not interested in getting high-speed connections at home.

  • And, two, consumers are simply moving away from buying desktops, laptops, and tablets. That piece of the pie has fallen from 53 percent in 2013 to 30 percent today.

I’m fine as it is, thanks

Don’t care about broadband? You’re represented in the study, too. On the non-broadband user side, Pew notes that crowd never had high-speed internet at home to begin with, don’t show much interest in having it in the future.

“In previous Center surveys, Americans of all kinds have linked not having broadband to a number of disadvantages -- including difficulties finding job information or less access to government services,” Anderson said. “Despite these perceived challenges, non-adopters show little interest in becoming home broadband users in the future.”

As the density of Americans owning a smartphone continues to grow -- currently at 87 percent -- the use of those smartphones as the consumer’s go-to digita...

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Ten states reportedly preparing to sue to block T-Mobile/Sprint deal

T-Mobile and Sprint’s pending $26.5 billion merger is facing new opposition.

A group of at least 10 state attorneys general are in the midst of preparing a lawsuit to block the deal, Reuters reports, citing sources familiar with the matter. The lawsuit is being led by New York Attorney General Letitia James.

“When it comes to corporate power, bigger isn’t always better,” James said of the proposed merger, which would reduce the number of wireless carriers to three from four. “The T-Mobile and Sprint merger would not only cause irreparable harm to mobile subscribers nationwide by cutting access to affordable, reliable wireless service for millions of Americans.”

Since the two providers announced their intention to merge last April, the merger has faced stiff opposition from government agencies and consumer groups. Critics contend that if the deal is approved, competition would be harmed and consumers could see higher prices.

Government pushback

Though T-Mobile and Sprint say the deal would lower prices for consumers, several Democratic lawmakers argued last year that the deal could impact lower-income people.

“T-Mobile and Sprint have led the way in offering wireless products and service options that are more appealing to lower-income consumers, including no contract plans, prepaid and no credit check plans, and unlimited, text, voice, and data plans,” eight senators said in a statement last May.

Justice Department officials voiced similar concerns last month.

“T-Mobile has a reputation for aggressively seeking to cut prices and improve service to woo customers away from market leaders Verizon Communications Inc and AT&T Inc, and staff may want to preserve that dynamic,” Reuters reported.

The FCC, on the other hand, has said it supports the deal because of its potential to speed up the deployment of 5G in the U.S and increase coverage in rural America.

T-Mobile and Sprint have until July 29 to complete their merger.

T-Mobile and Sprint’s pending $26.5 billion merger is facing new opposition. A group of at least 10 state attorneys general are in the midst of prepari...

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Justice Department wants T-Mobile, Sprint to create fourth carrier

Before the Department of Justice considers approving the $26.5 billion merger of T-Mobile and Sprint, the agency reportedly wants the two companies to “lay the groundwork” for a fourth carrier, according to Bloomberg.

The Justice Department has been hesitant to approve the deal, as it doesn’t believe the merger will be in the best interest of consumers. Back in April, the DOJ expressed concern that the merger would negatively affect competition in the industry. It also challenged the companies’ assertion that the merger would lower costs.

Now, a source familiar with the matter has informed Bloomberg that DOJ officials are demanding that the two telecom companies create a fourth carrier in order to get the deal approved. The request would mitigate the DOJ’s concern that T-Mobile would have less incentive to drop costs as a way of attracting customers after joining forces with Sprint.

“T-Mobile has a reputation for aggressively seeking to cut prices and improve service to woo customers away from market leaders Verizon Communications Inc and AT&T Inc, and staff may want to preserve that dynamic,” Reuters reported last month, citing sources familiar with the matter.

Pending approval

While the new condition might assuage one of the DOJ’s chief concerns, it would go against the carriers’ argument that combining would help them compete with Verizon and AT&T and lower costs for consumers.

Last week, reports surfaced that Justice Department officials recommended that the merger be blocked. The news was fresh on the heels of FCC Chairman Ajit Pai saying he would approve the deal on the basis that it would help speed up the deployment of nationwide 5G and help close the digital divide in America.

Bloomberg notes that if T-Mobile and Sprint are unable to convince the Justice Department to approve the deal, the government would sue in court to “block the tie-up.”

“State attorneys general, who can enforce antitrust laws, are also concerned the merger threatens competition and could join a U.S. challenge or sue on their own if the Justice Department approved it,” the publication pointed out.

Before the Department of Justice considers approving the $26.5 billion merger of T-Mobile and Sprint, the agency reportedly wants the two companies to “lay...

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Justice Department recommends blocking T-Mobile/Sprint merger

The Justice Department’s antitrust division has recommended filing a lawsuit to block the $26.5 billion merger between T-Mobile and Sprint, Reuters reported Wednesday. The publication notes that Justice Department officials do not appear to believe that the merger will be in the best interest of consumers.

“T-Mobile has a reputation for aggressively seeking to cut prices and improve service to woo customers away from market leaders Verizon Communications Inc and AT&T Inc, and staff may want to preserve that dynamic,” Reuters said, citing sources familiar with the matter.

In April, the Wall Street Journal reported that the companies had apparently been told by Justice Department staff that the merger is not likely to be approved as currently structured. The Department reportedly expressed concern that the deal would negatively affect competition in the industry. It also challenged the companies’ arguments that the merger would drive down costs.

News of the DOJ’s skepticism about the proposed merger comes just a few days after the head of the FCC said he supports it on the basis that combining the two telecom companies will speed up the deployment of 5G and help close “the digital divide in rural America.”

Arguments against the merger

The Justice Department is expected to make a final decision on the merger in about a month, sources told Reuters.

While Sprint and T-Mobile contend that joining forces will create jobs, lower prices for consumers, and lead to better 5G service, lawmakers and labor groups have argued otherwise.

“T-Mobile and Sprint have led the way in offering wireless products and service options that are more appealing to lower-income consumers, including no contract plans, prepaid and no credit check plans, and unlimited, text, voice, and data plans,” eight Democratic senators said in a statement last year.

In August, the Communications Workers of America (CWA) opposed the merger, arguing that over 28,000 jobs would be lost if the companies are cleared to merge.

The Justice Department’s antitrust division has recommended filing a lawsuit to block the $26.5 billion merger between T-Mobile and Sprint, Reuters reporte...

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FCC chairman recommends approval of T-Mobile/Sprint merger​

​Federal Communications Commission (FCC) chairman Ajit Pai announced Monday that his agency intends to formally recommend the approval of the merger of T-Mobile and Sprint on the basis that it will expedite the deployment of 5G in the U.S.

“Two of the FCC’s top priorities are closing the digital divide in rural America and advancing United States leadership in 5G, the next generation of wireless connectivity. The commitments made today by T-Mobile and Sprint would substantially advance each of these critical objectives,” Pai said in a statement.

Pai said the combined telecom company would help the agency fulfill its mission of shrinking the digital divide and bringing faster mobile broadband to consumers in rural areas.

If their union is approved, T-Mobile and Sprint have promised to deploy a 5G network that would cover 97 percent of the nation’s population within three years of the merger’s finalization, and 99 percent within six years. Additionally, 85 percent of rural Americans would be covered within three years and 90 percent covered within six years.

Pai said the two companies would suffer “serious consequences” if they fail to uphold their FCC commitments.

“These consequences, which could include total payments to the U.S. Treasury of billions of dollars, create a powerful incentive for the companies to meet their commitments on time,” he said.

The $26.5 billion merger between T-Mobile and Sprint is still awaiting approval by the FCC and the Justice Department. In April, the Wall Street Journal reported that the two providers had been told by Justice Department officials that the merger wasn’t likely to be approved as currently structured.  

Facing opposition

Sprint and T-Mobile have argued that joining forces will lead to better 5G service, the creation of U.S. jobs, and the ability the better compete with larger rivals. However, lawmakers and labor groups have contended that the merger could lead to price increases and job losses.

“T-Mobile and Sprint have led the way in offering wireless products and service options that are more appealing to lower-income consumers, including no contract plans, prepaid and no credit check plans, and unlimited, text, voice, and data plans,” eight Democratic senators said in a statement last year.

Back in August, the Communications Workers of America (CWA) formally opposed the merger. The group argued that over 28,000 jobs would be lost if the companies are combined.

​Federal Communications Commission (FCC) chairman Ajit Pai announced Monday that his agency intends to formally recommend the approval of the merger of T-M...

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New study explores why we constantly check our phones

Smartphones affect nearly every facet of our day-to-day lives, and researchers from the University of Washington say there are consistent trends that govern why we pick up and put down our devices.

“For a couple of years I’ve been looking at people’s experiences with smartphones and listening to them talk about their frustration with the way they engage with their phones,” said researcher Alexis Hiniker. “But on the flip side, when we ask people what they find meaningful about their phone use, nobody says, ‘Oh, nothing.’ Everyone can point to experiences with their phones that have personal and persistent meaning.”

According to Hiniker, her project hinged on one important question: “How do we support that value without bringing along all the baggage?”

Understanding smartphone use

The researchers began by interviewing participants from three different age groups -- high school students, college students, and adults -- to determine what prompted them to either pick up or put down their smartphones.

The researchers found that the reasons for beginning or ending smartphone use was the same across all age groups. Participants were likely to use their phones when: in a socially awkward situation, in an unoccupied moment, they were waiting for a message, or when beginning a boring or repetitive task.

Similarly, the recognition of having spent too much time on the phone, coming across content they’d seen already, or being occupied by other things was what pushed participants to put their phones down.

“This doesn’t mean that teens use their phones the same way adults do,” said Hiniker. “But I think this compulsive itch to turn back to your phone plays out the same way across all age groups.”

Tailoring smartphone use

While many studies about smartphone use look for ways to curb the technology addiction, the researchers of this study were curious to gauge participants’ feelings towards their smartphone use.

They started this practice by asking the participants to come up with ways to moderate their smartphone use. While many participants offered solutions that would lock users out, effectively barring them from using their devices, many didn’t feel that using their phones was something to be ashamed of, or that it should be prevented.

“If the phone weren’t valuable at all, then sure, the lockout mechanism would work great,” Hiniker said. “We could just stop having phones, and the problem would be solved. But that’s not really the case.”

Because a number of participants felt they were using their phones to enhance their connection to the world, Hiniker encourages future software updates to allow consumers to interact with their technology in the best way they see fit.

“People have a pretty good sense of what matters to them,” she said. “They can try to tailor what’s on their phone to support the things that they find meaningful.”

Staying connected

Smartphone use has been targeted in recent years, especially when a study revealed that the devices were being charged with the increase in traffic deaths and injuries.

Despite that, consumers chose smartphones as their preferred device, and researchers continue to explore how using them is affecting our day-to-day lives. A recent study found that social connection is at the heart of why consumers are so attached to their smartphones.

"There is a lot of panic surrounding this topic," says Professor Samuel Veissière. "We're trying to offer some good news and show that it is our desire for human interaction that is addictive -- and there are fairly simple solutions to deal with this."

Smartphones affect nearly every facet of our day-to-day lives, and researchers from the University of Washington say there are consistent trends that gover...

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T-Mobile and Sprint extend merger deadline until July 29

In a filing with the Securities and Exchange Commission (SEC), T-Mobile and Sprint announced a deadline extension for their $26 billion merger. The telecom companies now have until July 29 to get FCC and Justice Department officials on board with their proposal to merge.

Earlier this month, the Wall Street Journal reported that the two companies had been told by Justice Department staff that the merger isn’t likely to be approved as currently structured.

This week, Makan Delrahim, head of the Justice Department’s antitrust division, said he’s not sure whether he will greenlight the deal.

“I have not made up my mind,” Delrahim said in an interview with CNBC. “The investigation continues. We’ve requested some data from the companies that will be forthcoming. We don’t have a set number of meetings or a timeline.”

Consumer groups argue against the merger

The merger would combine the nation’s third and fourth largest telecommunications companies. Both Sprint and T-Mobile have insisted that the merger is crucial to their ability to compete with their larger rivals ahead of the nationwide rollout of 5G technology.

The deal has hung in the balance since it was first announced last April. It has faced stiff opposition from consumer groups who argue that the merger would lead to higher prices for consumers, as well as the loss of up to 30,000 jobs.

The 4Competition Coalition, one of the groups that has spoken out against the deal, published a statement this week reiterating that its members believe the merger should not be approved.

“In the year since T-Mobile and Sprint announced plans to merge, they have failed to show that this deal is in the public interest and complies with antitrust law,” the group said. “The companies seem to believe PR and spin will carry the day, but we believe that, based on the facts and the law, this proposed merger should be blocked.”

In a filing with the Securities and Exchange Commission (SEC), T-Mobile and Sprint announced a deadline extension for their $26 billion merger. The telecom...

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Sprint says its business isn’t as strong as it appeared

Following news that its proposed merger with T-Mobile may be on the ropes, Sprint has reportedly told regulators that its business may not be as stable as it appeared, according to the Wall Street Journal.

“[Sprint] has touted adding new wireless connections for six straight quarters. What it didn’t say until now is that many of those gains were free lines or existing customers that switched services,” the Journal said.

Sprint’s “recent gains in so-called postpaid connections… were driven by free lines given to existing Sprint customers,” the report continued.

Earlier this week, the WSJ reported that Justice Department staff recently informed the two telecom providers that the merger is unlikely to be approved as currently structured. T-Mobile CEO John Legere refuted that the merger is in trouble, tweeting that the premise of the Journal’s story was “simply untrue.”

Not on a ‘competitive path’

Sprint told regulators that, given the state it’s in, it’s unlikely to survive as a standalone company.

In a recent filing with the Federal Communications Commission (FCC), Sprint attempted to make a case for the merger by claiming that its ability to compete in the industry would be diminished if the merger isn’t approved.

“Sprint is in a very difficult situation that is only getting worse,” Sprint’s lawyers wrote. “Sprint’s lack of low-band spectrum is at the root of these network problems … Simply put, Sprint is not on a sustainable competitive path.”

The company added that its network is “deficient” and that it’s “losing customers, and it cannot generate enough cash to invest in its network, pay its debt obligations, and compete effectively.”

“Absent completing its transaction with T-Mobile, Sprint will have limited options, and is likely to be forced down either a repositioning path and/or a restructuring path,” the FCC filing continued.

The planned merger of T-Mobile and Sprint would reduce the number of carriers from 4 to 3, which critics argue could hurt competition and drive up costs for consumers. The companies have argued that the opposite would be true, claiming that the merger will result in more efficiencies that allow the combined company to reduce costs.  

Following news that its proposed merger with T-Mobile may be on the ropes, Sprint has reportedly told regulators that its business may not be as stable as...

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T-Mobile’s no-fee banking app makes nationwide debut

T-Mobile's mobile banking service, which launched as a pilot program last November, is now available nationwide. The mobile carrier partnered with digital bank BankMobile to offer the service, which has no fees for overdrafts or ATM use.

“Americans paid $34 billion in overdraft fees in 2017. That’s not even counting all the other fees banks charge. And consumers earned next-to-zero interest on their account balances. T-Mobile MONEY changes the game,” the carrier said in a press release.

T-Mobile said checking account customers can earn 4 percent Annual Percentage Yield (APY) on balances up to $3,000 as long as they deposit at least $200 each month. For every dollar over $3,000, the account will have a one percent APY.

Customers can also opt in to T-Mobile’s “Got Your Back” overdraft protection, so that “when the unplanned happens, they can go in-the-red, up to $50, without penalty” on the condition that they bring the account back to a positive balance within 30 days.

Helping consumers keep their money

The app also gives account holders a way to transfer money, make mobile check deposits, pay bills, send checks and even pay with mobile wallets, including Apple Pay, Google Pay and Samsung Pay.

T-Mobile says its banking app is intended to help customers keep more of their money than they would if they had an account through a big bank.

“Traditional banks aren’t mobile-first, and they’re definitely not customer-first. As more and more people use their smartphones to manage money, we saw an opportunity to address another customer pain point,” T-Mobile CEO John Legere said. “You work hard for your money … you should keep it … and with T-Mobile MONEY, you can!”

T-Mobile's mobile banking service, which launched as a pilot program last November, is now available nationwide. The mobile carrier partnered with digital...

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The T-Mobile-Sprint merger may be in trouble

A published report is casting new doubt on the proposed merger of Sprint and T-Mobile, a union that already faces opposition from some consumer groups and lawmakers.

The Wall Street Journal cites “people familiar with the matter” as saying the two telecom providers have been told by Justice Department staff that the merger is not likely to be approved as currently structured.

None of the parties involved -- T-Mobile, Sprint, and the Justice Department -- have responded to media requests for comment.

The Justice Department’s antitrust division is examining the proposed $26 billion deal to determine if it would negatively affect competition in the industry. The merger would reduce the number of major carriers from four to three. That, consumer advocates say, would lead to higher costs, especially since both T-Mobile and Sprint tend to serve lower-income customers than AT&T and Verizon.

According to The Journal, Justice Department staff met with representatives of both companies in early April and expressed their concerns about the deal. They also reportedly challenged the companies’ arguments that the merger would make both entities stronger and lower costs.

Ability to compete

Sprint and T-Mobile have steadfastly maintained that the merger is important to their ability to compete with their larger rivals when it comes to deploying a 5G network, which is more expensive than current 4G network technology.

In a blog post last month, T-Mobile CEO John Legere made a case for the merger, saying it would enable the creation of what he termed a “spectacular” 5G network that would allow for wireless high-speed internet service in underserved areas.

Legere said consumers using the planned T-Mobile-Sprint home internet service would get speeds of 100 Mbps and higher. The system would be so simple, he wrote, that consumers would be able to install it themselves.

Legere also said 5G networks will give large wired ISPs more competition than they’ve ever had before, which he predicted would lower prices for internet service. Legere has not said what 5G service would cost but has said on occasion that it would be less than what consumers are now paying for a wired connection.

Other opposition

In addition to reported opposition from the Justice Department, several Democratic lawmakers have spoken out against it.

“T-Mobile and Sprint have led the way in offering wireless products and service options that are more appealing to lower-income consumers, including no contract plans, prepaid and no credit check plans, and unlimited, text, voice, and data plans,” eight senators said in a statement 11 months ago.

In August, the Communications Workers of America (CWA) -- a union that represents 700,000 workers -- formally opposed the merger, arguing that over 28,000 jobs would be lost if the two companies are combined.

A published report is casting new doubt on the proposed merger of Sprint and T-Mobile, a union that already faces opposition from some consumer groups and...

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T-Mobile testing home internet service for $50 per month

T-Mobile has started testing an in-home internet service that will cost consumers $50 per month.

Initially, the service will only be available to “a limited few T-Mobile customers” on an invite-only basis. The company says its goal is to connect up to 50,000 households this year, mainly in rural and underserved markets.

T-Mobile said its plan to deploy 5G home internet on a larger scale is riding on the approval of its pending merger with Sprint. The service will eventually be supported by the faster 5G network, which the companies have argued can only be deployed if the merger is cleared.

“If T-Mobile’s pending merger with Sprint is approved, with the added scale and capacity of the New T-Mobile, the Un-carrier plans to cover more than half of U.S. households with 5G broadband service – in excess of 100 Mbps – by 2024,” the company said in a press release.

In response to concerns that the merger will limit competition and raise costs for consumers, the carrier has repeatedly claimed that the opposite will be true. In its announcement of the pilot, T-Mobile once again highlighted the potential savings for consumers.

“Today, consumers typically pay around $80 per month for wired in-home broadband service – $960 per year. Thanks to lower prices and more competition, one economist estimates that the New T-Mobile will save customers up to $13.65 billion a year on home broadband by 2024,” the T-Mobile said.

Aiming to fight ‘Big Cable’

The company said it has already started sending invitations to customers eligible to participate in the pilot. Customers won’t have to pay for the LTE receiver / router that will be sent to them by T-Mobile. However, they will have to set it up themselves.

Next week, the FCC will take its final round of comments on the proposed merger of T-Mobile and Sprint. The pilot appears to be a way of demonstrating how the combined company can eventually use 5G connectivity to provide internet that is capable of competing with cable companies.

“Two weeks ago, I laid out our plans for home broadband with the New T-Mobile. Now, we’re already hard at work building toward that future,” said John Legere, CEO of T-Mobile. “We’re walking the walk and laying the foundation for a world where we can take the fight to Big Cable on behalf of consumers and offer real choice, competition and savings to Americans nationwide.”

T-Mobile has started testing an in-home internet service that will cost consumers $50 per month. Initially, the service will only be available to “a li...

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T-Mobile CEO makes a new case for the merger with Sprint

The proposed merger of T-Mobile and Sprint is still pending, but T-Mobile CEO John Legere has said 5G is one good reason for its approval.

Without a merger, he says both companies would have a difficult time building out their 5G networks the way their customers would want. With the merger, he says the new 5G network would be spectacular.

In a blog post this week, Legere revealed just how spectacular he thinks the combined company’s 5G network would be. Legere said consumers using the T-Mobile-Sprint home internet service would get speeds of 100 Mbps and higher. The system will be so simple, he writes, that consumers can install it themselves.

Best of all, he writes, 5G will give the large cable companies more competition than they’ve ever had before. Because of 5G’s massive capacity, consumers will be able to rely on wireless service for their internet service and get speeds as fast or faster than fiber optic connections. And though he made no mention of what 5G service will cost, Legere said it will be less than what consumers are now paying for a wired connection.

Opposition to the merger

The proposed merger would reduce the major wireless players from four to three and because of that, there are plenty of people who are against the merger. In December a group of consumer groups, labor unions, and industry associations formed the 4Competition Coalition, a new alliance aimed at derailing the merger.

The groups say reducing the number of wireless providers will give consumers fewer choices. T-Mobile and Sprint have countered that as separate, stand-alone companies they will not be able to compete with AT&T and Verizon in the 5G environment.

Earlier this year, two separate House committees held hearings on the proposed merger, voicing concern that low-income consumers make up a sizable portion of the two companies’ customers and could face higher prices as a result of the merger.

New York’s attorney general has made the same argument, but in his blog post this week Legere disagreed.

‘Competition’

“We’ll give millions of Americans – especially those in underserved rural areas – more choices and options for connecting to the internet and participating in the digital economy,” he wrote.

In his post, Legere used the word “competition” several times, making a case that combining T-Mobile and Sprint would not result in higher costs for consumers but might even bring them down.

“With our best-in-class 5G network we will offer a meaningful new option to millions of Americans in the form of New T-Mobile Home Internet,” Legere promised. “New T-Mobile’s business plan is to have 9.5 million customers for our in-home broadband service by 2024. We will bring competition, period!”

Legere says T-Mobile plans to test a home internet service using a 4G router and the carrier’s existing LTE network. Once the merger takes place, he says it will be upgraded to include 2.5 GHz spectrum and 5G compatible hardware.

The proposed merger of T-Mobile and Sprint is still pending, but T-Mobile CEO John Legere has said 5G is one good reason for its approval.Without a mer...

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T-Mobile promises to keep prices the same if cleared to buy rival Sprint

In a letter to the Federal Communications Commission (FCC), T-Mobile CEO John Legere vowed not to increase prices for three years if the carrier’s $26 billion merger with Sprint is approved.

"To remove any remaining doubt or concerns about New T-Mobile’s prices while we are combining our networks over the next three years, T-Mobile today is submitting to the Commission a commitment that I stand behind – a commitment that New T-Mobile will make available the same or better rate plans for our services as those offered today by T-Mobile or Sprint," Legere said.

"We believe this merger makes consumers better off, and we're willing to put our money where our mouth is. Period,” Legere added.

Opposed by numerous consumer groups

T-Mobile and Sprint have argued that joining forces is necessary to introduce 5G services, as it will create a stronger competitor to AT&T and Verizon.

However, a number of consumer groups oppose the deal, arguing that eliminating one of the four largest carriers would reduce competition, cost thousands of jobs, and lead to higher prices for consumers. Legere addressed these concerns in the letter.

“Critics of our merger, largely employed by Big Telco and Big Cable, have principally argued that we are going to raise rates right after the merger closes. I want to reiterate, unequivocally, that New T-Mobile rates are NOT going to go up. Rather, our merger will ensure that American consumers will pay less and get more.”

Last week, a pair of U.S. House panels announced that they will hold a joint hearing to discuss the proposed merger of T-Mobile and Sprint.

At the hearing, which is set to take place on February 13, the House Energy and Commerce Committee and the Judiciary Committee will “examine the merger’s potential impacts on consumers, workers and the wireless industry.” The CEOs of both wireless providers will testify at the hearing.

In December, the merger gained approval from U.S. national security officials. However, the deal must be approved by the FCC and DOJ before it can take place.

In a letter to the Federal Communications Commission (FCC), T-Mobile CEO John Legere vowed not to increase prices for three years if the carrier’s $26 bill...

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U.S. House Committees to hold hearing to discuss T-Mobile/Sprint merger

On Wednesday, February 13, two U.S. House panels will hold a joint hearing to discuss the proposed merger of T-Mobile and Sprint.

The hearing will “examine the merger’s potential impacts on consumers, workers and the wireless industry,” the House Energy and Commerce Committee and the Judiciary Committee said in a press release.  

T-Mobile CEO John Legere and Sprint CEO Marcelo Claure are both set to testify at the hearing.

“A merger between T-Mobile and Sprint would combine two of the four largest wireless carriers and the carriers with the largest numbers of low-income customers,” the Committees said in a joint statement.

“As the Committees with oversight of the Federal Communications Commission and Department of Justice, we must hold this hearing to examine the effects on important issues like jobs, costs to consumers, innovation and competition,” said Pallone, Nadler, Doyle and Cicilline.  “We look forward to examining this merger from the perspective of what is in the best interest of consumers and hardworking people.”

Despite approval, opposition remains

Last month, the Sprint and T-Mobile merger was granted approval from U.S. national security officials. The news came just days after a number of parties announced their opposition to the merger.

Critics of the deal say it would reduce competition, cost thousands of jobs, and lead to higher prices for consumers. T-Mobile and Sprint have argued that joining forces is necessary to introduce 5G services.

“I am looking forward to sharing the benefits of the T-Mobile / Sprint merger with the House Commerce and Judiciary Committees on 2/13,” T-Mobile CEO John Legere said. “It’s a great opportunity to explain why it’s good for consumers, good for competition and good for the country.”

Before T-Mobile’s $26 million takeover of Sprint can take place, the deal must be approved by the FCC and DOJ.

On Wednesday, February 13, two U.S. House panels will hold a joint hearing to discuss the proposed merger of T-Mobile and Sprint.The hearing will “exam...

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T-Mobile gains Sprint merger approval from the Committee on Foreign Investment in the United States

T-Mobile has been granted approval for its proposed merger with Sprint following “several months of negotiation with company representatives,” the Wall Street Journal reports.

T-Mobile said in a statement late Monday that the $26 billion takeover was cleared by the Committee on Foreign Investment in the United States (CFIUS).

The company said the U.S. Department of Justice, Department of Homeland Security, and Department of Defense (collectively referred to as Team Telecom) also confirmed that it has no objections to the merger.

“We are pleased to achieve both of these important milestones in the journey to build the New T-Mobile," said T-Mobile CEO John Legere. "We are a step closer to offering customers a supercharged disrupter that will create jobs from day one and deliver a real alternative to fixed broadband while delivering the first broad and deep nationwide 5G network for the United States...We look forward to continuing our discussions with the remaining regulatory agencies reviewing our transaction to share our story and subsequently achieve similar positive results.”

Facing opposition

T-Mobile and Sprint filed the proposed deal with the FCC on June 18. Obtaining approval by CFIUS was an important step in the process of moving forward with the deal, but the merger must still be approved by antitrust officials, including the FCC and DOJ.

Following a brief delay in September, the FCC has resumed its review of the proposed merger of the two wireless providers.

The deal is opposed by a number of parties, including a group called the 4Competition Coalition Last week, the group announced a new alliance aimed at preventing the merger from happening.

Critics of the deal say it would reduce competition, cost thousands of jobs, and lead to higher prices for consumers. If the two companies merge as planned in the first half of 2019, the number of wireless providers in the United States will drop from four to three.

T-Mobile and Sprint have argued that joining forces is necessary to introduce 5G services.

T-Mobile has been granted approval for its proposed merger with Sprint following “several months of negotiation with company representatives,” the Wall Str...

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California drops proposal to tax text messages

California regulators have dropped their proposal to levy a surcharge on text messages made by state residents. The California Public Utilities Commission said a new ruling by the FCC prevented the state from adding a tax on text plans.

"On Dec. 12, 2018, the Federal Communications Commission (FCC) issued a declaratory ruling finding that ‘text messaging’ is an information service, not a telecommunications service, under the Federal Telecommunications Act," the CPUC said in a statement.

The CPUC said that texting could have been subject to state tax under California law if it were considered a telecommunications service.

"In light of the FCC's action, assigned Commissioner Carla J. Peterman has withdrawn from the CPUC's Jan. 10, 2019 Voting Meeting" the text tax proposal.

“Illogical, anticompetitive and harmful to consumers”

Last week, the agency said it was pushing for the text tax in the hope that it would help increase funds for programs that provide telecommunications services to low-income residents. A vote on the measure was set to happen on January 10.

The proposed measure faced stiff opposition from the wireless industry, business groups, and others.

The CTIA, a trade group representing wireless companies, argued that the measure would have created inequity "between wireless carriers and other providers of messaging services," such as WhatsApp, iMessage, and Skype.

"Subjecting wireless carriers' text messaging traffic to surcharges that cannot be applied to the lion's share of messaging traffic and messaging providers is illogical, anticompetitive, and harmful to consumers," the CTIA said in a legal filing.

State residents also voiced their opposition to the idea.

"Of course California wants to tax your text messages. They would tax your toilet use if they could, " one Twitter user said.

California regulators have dropped their proposal to levy a surcharge on text messages made by state residents. The California Public Utilities Commission...

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T-Mobile/Sprint merger faces new challenge

A proposal to merge T-Mobile and Sprint is facing new opposition as a group of consumer groups, labor unions, and industry associations have formed the 4Competition Coalition, a new alliance aimed at derailing the merger.

The groups say the public interest will not be served by reducing the number of major wireless providers from four to three. T-Mobile and Sprint have suggested that as separate, stand-alone companies they will not be able to compete with AT&T and Verizon in the 5G environment.

But the new coalition declares that consumers will suffer if the merger is allowed because they will have fewer choices.

Higher prices?

"If this merger is approved, consumers would likely face a price increase of more than 15 percent in many cases for their wireless service – without seeing any of the benefits that these companies promise,” said Phillip Berenbroick, public knowledge senior policy counsel for the 4Competition Coalition. “The proposed merger is anti-competitive and presumptively unlawful.”

Berenbroick says consumers need more wireless choices, not fewer. He says moving from four nationwide carriers to three “would be a disaster."

The 4Competition Coalition bases its opposition on the contention that the merger, as presently constituted, does not conform with U.S. antitrust laws. The group says the combined company would have both the ability and the incentive to raise prices and block new companies from entering the market.

At the heart of its opposition, the 4Competition Coalition said it believes reducing the number of major cellular providers from four to three would result in higher prices for everyone. It points out that both Sprint and T-Mobile are currently mavericks in the industry, but if they joined forces they would no longer have the incentive to pressure their competitors to keep prices low.

Impact on workers

The group says the merger would also be bad for workers. The Communications Workers of America estimates the union of the two providers would result in the elimination of up to 30,000 jobs in the U.S.

It also contends that rural consumers would be the big losers.

“The truth is the deal does nothing to help out rural Americans and could mean they pay even higher prices or lose coverage altogether,” the group said in a press release. “Indeed, the proposed transaction will likely raise costs for rural consumers due to the increased cost of roaming associated with the elimination of Sprint from the wireless marketplace.”

"Consumers deserve more competition from our wireless industry, not less," said Jeff Blum, DISH Network senior vice president for Public Policy and Government Affairs. "Sprint and T-Mobile have not shown that this merger as it is currently proposed will serve the public interest.

The merger is currently being considered by two government regulators, the Federal Communications Commission and the U.S. Department of Justice.

A proposal to merge T-Mobile and Sprint is facing new opposition as a group of consumer groups, labor unions, and industry associations have formed the 4Co...

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California considering taxing text messaging

California is considering enacting a tax for text messaging to help fund a program that makes telecommunications services available to low-income consumers.

In a filing, the state’s Public Utilities Commission said adding a texting surcharge could help keep its Public Purpose Programs afloat. As consumers have migrated toward texting instead of making phone calls, the voice call revenue for these programs have dropped.

The budget rose to $998 million in 2017 from $670 million in 2011, and revenue from the telecom industry that funds the program fell to $11.3 billion last year from $16.5 billion in 2011, according to a report from California’s Public Utilities Commission (CPUC).

“This is unsustainable over time,” CPUC stated in its report.

"Parties supporting the collection of surcharges on text messaging revenue argue that it will help preserve and advance universal service by increasing the revenue base upon which Public Purpose Programs rely. We agree," CPUC said.

Wireless industry pushing back

A vote on the tax -- which would likely appear as a flat surcharge in the small print of bills -- hasn’t yet happened. While the proposal is on the table, the wireless industry, business groups, and others are expressing their opposition to the idea.

"Of course California wants to tax your text messages. They would tax your toilet use if they could, " one Twitter user said

The CTIA, a trade group representing wireless companies, has argued that texting is an information service on par with email, not a telecommunications service subject to the agency’s ability to tax services.

"Subjecting wireless carriers' text messaging traffic to surcharges that cannot be applied to the lion's share of messaging traffic and messaging providers is illogical, anticompetitive and harmful to consumers," CTIA's filing said.

Jim Wunderman, president of the Bay Area Council business-sponsored advocacy group, called the proposal “a dumb idea.”

“This is how conversations take place in this day and age, and it’s almost like saying there should be a tax on the conversations we have.”

“May be a wash”

The CPUC contends that enacting a texting surcharge would have a minimal effect on consumers.

"If more surcharge revenues come from texting services, less would be needed from voice services," a CPUC spokesperson told the Mercury News in San Jose, California. "Generally, those consumers who create greater texting revenues may pay a bit more, whereas consumers using more voice services may pay less."

Several business groups fighting the proposal have calculated that the new charges for wireless consumers could total about $44.5 million a year.

California is considering enacting a tax for text messaging to help fund a program that makes telecommunications services available to low-income consumers...

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Consumer groups line up against T-Mobile merger with Sprint

From the start, the proposed merger of T-Mobile and Sprint has never been popular with consumer advocates. This week, 14 consumer groups joined forces to oppose it.

Leaders from the 14 organizations signed a letter to the top Democrats on the House Judiciary and Energy & Commerce committees. In addition to laying out their reasons for opposing the deal, the groups ask the two lawmakers -- who will become committee chairmen in January when the Democratic majority takes control -- to hold hearings on what such a merger would mean for consumers.

The groups lining up against the merger include:

  • American Antitrust Institute
  • Center for Media Justice
  • Common Cause
  • Communications Workers of America Consumer Reports
  • Fight for the Future
  • Free Press Action
  • The Greenlining Institute
  • National Consumer Law Center, on behalf of its low income clients
  • New America’s Open Technology Institute
  • Open Markets Institute
  • Public Knowledge
  • Rural Wireless Association Writers
  • Guild of America West

Higher prices, fewer jobs

The groups say the merger would undoubtedly lead to higher prices for consumers, especially those who rely on both services' pre-paid plans, among the cheapest in the industry. The Communications Workers of America says the merger would lead to the loss of up to 30,000 jobs.

“Wireless is one of the few telecommunications markets where we see real head-to-head competition delivering benefits for consumers," said George Slover, senior policy counsel at Consumer Reports. "We need to preserve this dynamic that comes from having both T-Mobile and Sprint in the marketplace, competing vigorously and independently against each other, and against AT&T and Verizon."

T-Mobile and Sprint have argued their case for the merger by saying that if they are left to compete as individual companies they will be at a severe disadvantage to AT&T and Verizon when it comes to building a 5G network.

The consumer groups, however, say the purported benefits of the merger are purely speculative. They argue that hearings in the House will help clarify the issue.

‘Strong incentives to collude’

Diana Moss, president of the American Antitrust Institute (AAI), says the merger would be a tipping point in the wireless industry, creating a “Big 3” with strong incentives to collude rather than compete.

"Consumers and workers have a right to competition," she said. "DOJ should block this deal.”

This isn't the first time T-Mobile and Sprint have sought mergers, though never with one another. Most recently AT&T tried to acquire T-Mobile, a deal that was rejected by the Justice Department in 2011.

From the start, the proposed merger of T-Mobile and Sprint has never been popular with consumer advocates. This week, 14 consumer groups joined forces to o...

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T-Mobile executive says Sprint deal could close in the first quarter of 2019

At a recent conference in Barcelona, T-Mobile’s Chief Financial Officer said there’s a possibility that the company’s $26 billion acquisition of Sprint will be finalized as early as the first quarter of 2019.

At the end of April, T-Mobile agreed to buy Sprint, saying the two companies needed to join forces so they could build a robust 5G network that can compete with Verizon and AT&T.

The deal is currently being scrutinized by the Federal Communications Commission (FCC) and the Department of Justice (DOJ). The FCC is studying the engineering aspects of combining T-Mobile and Sprint, while the Justice Department is examining the competitive aspects.

T-Mobile’s CFO J. Braxton Carter said on Friday that the companies have provided 25 million pages worth of documents to the DOJ and filed a 600 page public information statement with the FCC. The companies have also held meetings with other U.S. government departments.

“The only remaining thing that is happening is depositions with the DOJ, which have started and will be completed in a few weeks,” Carter said at the conference, according to Reuters. “At this point, it’s more pointing to the second quarter as more probable (but) it could still be first quarter.”

Carter noted that, together, the two smaller telecom companies can create a much faster network.

"The combined assets of Sprint and T-Mobile can create 8 times the 5G capacity that either of us could do on a standalone basis and 15 times the speed," the executive said.

Opposition from consumer groups

Earlier this week, federal regulators kicked off the first auction of 5G spectrum. Germany is expected to start its 5G auctions early next year.

The merger has been the target of opposition from consumer and labor groups, who have expressed concern that the deal could hurt consumers.

Back in May, a group of Democratic lawmakers said they worried a merger would result in higher costs for consumers. In August, the Communications Workers of America (CWA) predicted that the merger would result in the loss of 24,000 retail jobs.

Meanwhile, T-Mobile has said that the merger will be good for consumers.

“This is another step forward in creating the new T-Mobile, so we can deliver on our promise to bring robust competition to the 5G era, giving consumers more for less and creating jobs,” John Legere, T-Mobile's CEO, said in a statement.

At a recent conference in Barcelona, T-Mobile’s Chief Financial Officer said there’s a possibility that the company’s $26 billion acquisition of Sprint wil...

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Sprint launches faster 4G LTE, ups hotspot data allotment

Sprint announced on Tuesday that customers with more recent phones will get access to a faster 4G LTE network, as well as more monthly hotspot data at no additional cost.

Users of the company’s “Unlimited Plus” and “Unlimited Freedom” plans will now get 50GB of 4G LTE data each month. “Unlimited Premium” customers will receive 100GB monthly, up from 50 GB.

The new monthly data allotment comes “just in time for holiday travel” and also as the carrier is turning on its faster 4G LTE Advanced network across the United States. More than 225 cities are now able to access gigabit speeds.

The company says the network upgrades are paving the way to 5G.

"We've supercharged our network with some of the most advanced technologies in wireless to give customers an even better data experience," said Dr. John Saw, Sprint chief technology officer, in a statement. "LTE Advanced is critical for meeting customers' growing demands for data, and it's an important stepping stone to launch mobile 5G next year."

Preparing for 5G

Sprint says most of the latest “flagship” devices it sells -- including Apple's iPhone XS and XS Max; Samsung's Galaxy S9, S9 and Note 9 and LG's V30+, G7 ThinQ and V40 ThinQ -- are compatible with the faster network, which offers customers speeds up to twice as fast as before.

All four major wireless carriers are working toward the deployment of 5G. Verizon has already launched its first version of 5G in four U.S. cities and AT&T plans to launch its 5G network for mobile devices later this year.

Sprint plans to have its first 5G mobile device ready for purchase around March 2019, Roger Solé, Sprint's chief marketing officer, told USA TODAY.

Sprint announced on Tuesday that customers with more recent phones will get access to a faster 4G LTE network, as well as more monthly hotspot data at no a...

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T-Mobile shareholders approve merger with Sprint

T-Mobile shareholders have voted in favor of the company's merger with Sprint, a deal that would reduce the "big four" wireless carriers down to three.

The companies have said their union is necessary for the two smaller telecoms to develop the needed infrastructure to offer a robust 5G network to compete with Verizon and AT&T.

“This is another step forward in creating the new T-Mobile, so we can deliver on our promise to bring robust competition to the 5G era, giving consumers more for less and creating jobs,” said John Legere, T-Mobile's CEO.

Legere proudly points to his company's record of disrupting the wireless industry and says joining forces with Sprint will make the wireless landscape even more competitive. Both Verizon and AT&T are moving ahead with 5G deployment, offering the upgraded service in a handful of markets before the end of the year.

The bulk of T-Mobile shareholder approval of the deal came from Deutsche Telekom Holding B.V., holder of approximately 63.5 percent of T-Mobile common stock. But that was the easy part.

Regulators still considering the deal

The deal must still clear the Federal Communications Commission (FCC) and the Justice Department. The FCC is studying the engineering aspects of combining T-Mobile and Sprint. The Justice Department is examining the competitive aspects.

Consumer advocates have already come out against the merger and several Democratic senators have expressed concern that combining the two wireless providers could result in higher prices for consumers, particularly those who purchase the companies' low-cost prepaid wireless plans.

In May, the lawmakers sent a letter to the Justice Department’s Antitrust Division and the FCC to express their thoughts on the areas of the merger they considered problematic.

“As more than three-quarters of American adults now own smartphones, including many who depend on these devices for their primary connection to the internet, an anticompetitive acquisition in the wireless market could result in higher prices for American consumers or force some people to forego their internet connection altogether,” the lawmakers wrote.

New York reportedly questions the deal

In recent days, New York Attorney General Barbara Underwood has reportedly opened an investigation into the proposed deal over similar concerns.

According to a report in the New York Post, Underwood’s staff already views T-Mobile’s MetroPCS service and Sprint’s Boost and Virgin Mobile services as aggressive and has asked executives at both companies for clarification on how pricing would be affected.

Legere, meanwhile, is expressing confidence the deal will clear every regulatory hurdle, telling Bloomberg News that discussions with regulators have gone well and "we feel pretty good about our chances."

T-Mobile shareholders have voted in favor of the company's merger with Sprint, a deal that would reduce the "big four" wireless carriers down to three....

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eBay launches service to instantly sell old smartphones

How many old smartphones do you have taking up space in a desk drawer? According to a recent study by eBay, 40 percent of consumers have two or more unused devices.

There are a number of ways to get rid of these unwanted and largely outdated phones, but eBay has launched a program called eBay Instant Selling that allows consumers to sell unwanted devices and get paid instantly in the form of an eBay voucher.

While consumers have to spend the money they get on eBay, the company says they'll typically get more for their old phones than if they use traditional trade-in programs. On average, eBay says it will get the seller as much as 40 percent more than a phone retailer would pay.

"Millions of Americans have unused phones in their homes and simply don't realize how much their devices are worth, probably because trade-in values are typically so low," said Alyssa Steele, vice president of Hard Goods at eBay. "With Instant Selling, people can find out exactly how much their phone is worth, and sell their phone within a matter of minutes to immediately help fund the holidays, or maybe something off their personal wish list."

Getting started

To get started, go to eBay.com/s/phone. Enter information about the device you're selling and you'll be told if it is eligible for Instant Selling. Significantly older devices probably aren't.

Next, add some images of the device, click the list button, and accept the terms. You'll then receive an instant voucher that can be used toward the purchase of a new device on eBay. Ship your phone using an eBay shipping label you can print.

There are other methods of disposing of your unwanted device. When the new iPhones came out last month, ConsumerAffairs researched the values a consumer could expect to get from selling or trading in their old models.

We found that if you traded in your device to Apple, the values ran from $70 for an iPhone 6 to $525 for the most recent iPhone X. But consumers should definitely shop around since other online tech buyers might offer more.

When ConsumerAffairs checked prices for that same iPhone 6 on certain exchange sites, we found better prices than those that Apple offered, but lower values than Apple was allowing for factory unlocked iPhone 7 models.

Other options

Other companies, such as Gazelle, offer a way to sell both Apple and newer Android devices. The amount consumers receive largely depends on the type of device and its age.

Meanwhile, to protect your privacy and sensitive information, our friends at Techlicious point out there are six things you should do before handing over your old device to a stranger.

  • Back up data and settings

  • Back up photos and videos

  • Back up texts and call logs

  • Encrypt your data

  • Disable factory reset protection

  • Perform a factory reset

How many old smartphones do you have taking up space in a desk drawer? According to a recent study by eBay, 40 percent of consumers have two or more unused...

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T-Mobile launches 36-month extended payment option

On Friday, T-Mobile officially launched a new program that gives consumers three years to pay off certain smartphones, rather than the usual two years.

The following phones will be eligible for the 36-month extended payment plan: the Samsung Galaxy S8, S9; the LG G7 ThinQ; and the iPhone XS, XS Max, and XR. Those who qualify for the plan could pay “as little as $10 a month for your new smartphone” when they trade in an eligible device, according to T-Mobile.

The devices that are eligible for trade-in include:

  • Apple iPhone 7, iPhone 7 Plus, iPhone 8, iPhone 8 Plus; Samsung Galaxy S8 series, Note8; Google Pixel 2, Pixel 2 XL, Pixel, Pixel XL; LG V30, G7

  • iPhone 6s, iPhone 6s+, iPhone 6, iPhone 6+; Samsung: GS7 series, Note 5, GS6 series; LG: V20, G6; Motorola: Z2 Force; One Plus: 5, 5T, 6.

  • iPhone 5C, iPhone 5, iPhone 5s, iPhone SE; Samsung: GS4 series, GS5 series, Note 4; HTC: 10; LG: G5, G4, V10; Motorola Nexus 6; One Plus: 3, 3T, X, 2, 1

Depending on the condition and model of the device being traded in, customers could get up to $360 in bill credits toward the purchase of a new phone.

New deals

In a press release about the new extended payment option, T-Mobile's CEO John Legere pointed out that a family of four can sign up for the T-Mobile Essentials plan and get a new device for $50 per month per line with autopay.

“T-Mobile ONE includes all the extras — the industry’s best travel benefits, a personal Team of Experts for all your customer care needs, Netflix included for families, unlimited mobile hotspot and so much more. Starting Friday, well-qualified customers with trade-in and T-Mobile’s new 36-month EIP can get 4 lines of T-Mobile ONE and four new phones for as little as $50 a month per line with autopay,” the CEO said.

Legere also made sure he didn’t miss an opportunity to take a shot at the competition.

"Everyone knows we’ve got America’s fastest 4G LTE network and now we’ve got some of the best deals of the year on new smartphones. We’re not messing around," Legere said. "Forty dollars a month will only get you data on Dumb and Dumber’s congested networks. At T-Mobile, $40 a month will get you a hot new smartphone AND unlimited, so you can unleash everything that new phone is capable of doing!"

On Friday, T-Mobile officially launched a new program that gives consumers three years to pay off certain smartphones, rather than the usual two years....

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Verizon Wireless offering free cell service to customers impacted by Hurricane Florence

As Hurricane Florence touches down in the southeastern region of the U.S., Verizon Wireless has been preparing its network for the brunt of the storm.

The wireless provider has been working to ensure its network stays up and running for its customers, as well as for first responders who rely on the network to respond to emergencies. Prior to the hurricane, Verizon had been sandbagging and topping up backup generators and deploying mobile cell sites.

Because fewer and fewer people have landlines, wireless networks staying up during storms are more important than ever. It is for this reason that Verizon has tried to stay on top of its game in its prep for Hurricane Florence.

“I don’t have a magic crystal ball to predict the future,” said Karen Schultz, spokesperson for Verizon. “But I can tell you that we maintained 98 percent reliability during Hurricane Harvey and 90 percent of our network remained up in Florida during Irma.”

Free service during the storm

Verizon Wireless will also be offering free calling, texting, and data to customers between September 14 and September 17. The promotion will be available for postpaid and prepaid customers who live in Georgia, Virginia, and North and South Carolina.

“As we enter the final hours before Hurricane Florence makes landfall, we hope this allows our customers in these areas to worry about one less thing and focus on their safety and security,” said Russ Preite, president of the southeast market for Verizon Wireless. “This is just one way we can help residents as the potentially dangerous storm challenges the Southeast coast.”

Verizon has also lifted the speed caps on its data service for all first responders in Alabama, Georgia, Tennessee, North and South Carolina, Maryland, Florida, and Virginia.

As Hurricane Florence touches down in the southeastern region of the U.S., Verizon Wireless has been preparing its network for the brunt of the storm.T...

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T-Mobile launches ‘Team of Experts’ to provide better customer service

T-Mobile has launched a new customer service initiative called Team of Experts, which gives its postpaid customers in different regions across the U.S. their own “dedicated” group of customer care representatives.

The service team can be reached by dialing 611 or messaging straight from the T-Mobile app or iMessage using Apple Business Chat.

“‘Your call is important to us’ are the six emptiest words ever robo-spoken,” said John Legere, CEO of T-Mobile. “People are fed up with horrible customer service that puts cost control ahead of customer happiness.”

Cutting down on customer frustration

T-Mobile’s new service gets customers in touch with real customer service representatives quickly, without having to listen to a robot voice or push a series of buttons on a phone menu.

“While other brands mechanize customer service, we’re going the other way – no bots, no bouncing, no BS. With Team of Experts, we’re tearing up the traditional playbook, killing the phone menu and putting people at the center of customer care, like they should be. Because at T-Mobile, our customers have always been rock stars to us,” Legere said.

The carrier also promises to shrink call times by offering more callbacks, 24/7 support, and “asynchronous” messaging help to help solve the problem fast. If a customer has to contact T-Mobile again regarding the same issue, the same team will still be there.

“They’re going to make sure that it is solved and that you’re happy with the resolution,” said Callie Field, T-Mobile’s executive VP of customer care.

However, Field acknowledged that “Team of Experts” may not completely eliminate wait times

“Sometimes there’s some things you can’t avoid — like wait times. Because let’s face it, sometimes your team’s just busy,” Field said. “The difference is that when we’re busy, we’ll promise to you that we’ll handle you in a way that puts your time first. Our default option is that when you call, instead of waiting for us, schedule a time and we’ll call you back. So it’s your time — not our time — that matters.”

Music-related announcements

To mark the beginning of the initiative’s launch, T-Mobile is giving customers one year of free Pandora Plus streaming. Users will be able to get a code to unlock their free Pandora Plus subscription in the T-Mobile Tuesdays iOS and Android app on August 28.

T-Mobile also announced that it’s partnering with Live Nation to give its customers access to last-minute reserved tickets to otherwise sold-out shows "at first day prices." On Live Nation’s website, users will be able to look for a T-Mobile Reserved Seats icon starting 30 days before select shows, confirm their T-Mobile account, and get access to the event.

T-Mobile has launched a new customer service initiative called Team of Experts, which gives its postpaid customers in different regions across the U.S. the...

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T-Mobile to launch cheaper ‘Essentials’ plan

This Friday, T-Mobile will launch a plan just for customers who only use their smartphones for its basic services.

The carrier’s Essentials plan includes talk, text, and data for a lower price than its other basic plan, T-Mobile One. The Essentials plan will cost $30 per line for a family of four -- $10 less than T-Mobile One. While customers will still get unlimited data, text, and talk, the plan does not include perks like international data or hotspot capabilities.

"The Un-carrier wants to make it easy," CEO John Legere said in a press release. "Give customers the options they want, but keep it simple, stupid!"

Slowing services

The company pointed out that it has the right to slow a customer’s connection if they are in an area with “heavy network demand.” Essentials customers will be first in line to experience slower speeds in these instances.

The company said in its press release that video “typically” streams at 480p, or DVD quality. T-Mobile said that its One Plus plan includes HD streaming, twice the data speed abroad, and other perks, like in-flight texting and unlimited music streaming. The Plus plan costs $10 per line more when added to a family plan, or $15 more for a single line.

T-Mobile’s Essentials plan will be available nationwide starting Aug. 10. The plan starts at $60 for a single line, $30 for the second line, and $15 per line for lines 3-6. The plan will cost an additional $5 per line for those who don’t sign up for autopay.

This Friday, T-Mobile will launch a plan just for customers who only use their smartphones for its basic services. The carrier’s Essentials plan includ...

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Cell phone bills increase for first time in nearly two years

Over the past two years, consumers have been benefiting from competition between wireless companies, as cell phone providers have been rolling out unlimited data usage and lower bills as a means of securing customers.

Now, with new consumer-price data, the continued hype over promotions seems to be fading out. According to the Labor Department, the consumer-price index -- an indicator of current offers from wireless providers -- showed a 0.3 percent increase in June from last year.

“In terms of promotional intensity, things have cooled quite a bit,” said Jeffrey Moore, lead researcher at Wave7 Research.

CTIA -- a telecommunications trade group -- reported that 95 percent of American adults now own cell phones. In all, they used 15.7 trillion megabytes in mobile data in 2017 -- up from 4.1 trillion in 2014. These numbers complicate the work of wireless providers that need to spend money to keep up with the ever-increasing demands of the industry, and also try to keep and win new customers.

Cutting back on discounts

Back in February, executives at Sprint and T-Mobile -- two companies that have been most aggressive in cutting prices -- revealed they would be cutting back on discounts for the remainder of the year. Though T-Mobile made a bid to acquire Sprint in April, the deal raised eyebrows in the Senate, as many Senators feared it would decrease competition for consumers and, ultimately, raise prices.

Former Sprint executive Matt Carter reported that both Sprint and T-Mobile have been leading the charge among wireless providers when it comes to offering discounted pricing plans in an effort to gain subscribers. However, doing so leaves the companies with less money to not only pay their debt, but also invest in network upgrades.

“At some point in time, you have to have some stabilization around your pricing plans to be able to meet all the various needs they have,” Carter said. He also noted that when Sprint and T-Mobile cut back on price discounts, it allowed “AT&T and Verizon to hold steady” on their pricing plans.

The fine print in wireless plans

Sprint recently announced a new wireless plan, offering customers a tiered plan that replaced its previous five lines for $100 option. Sprint’s new top tier plan with five lines will cost customers $22 per line per month -- a $20 increase from the previous promotion.

Like other wireless companies, Sprint is also offering customers plans with a choice of the video-streaming service Hulu and the music-streaming service Tidal, as well as a more basic unlimited plan.

“Including that kind of content is becoming important,” said Dow Draper, Sprint chief commercial officer. Draper also noted that customers’ bills are likely lower than before when factoring in the additional benefits of the new plans.

Similarly, AT&T has been offering customers subscriptions to DirecTV and HBO, while T-Mobile began offering access to Netflix with wireless plans.

Last month, Verizon unveiled a new -- but also pricier -- unlimited data plan entitled “aboveunlimited.” The new plan allows customers to select different tiers of unlimited data plans within one single plan. Despite the raise in price, Verizon executives are confident with the new plan, as it gives customers the opportunity to choose the plan that best suits their needs for every person in the family.

“I think it’s fair to say objectively based on our performance since some of our competitors changed their offerings, we’ve not seen any increase in our churn,” said Ronan Dunne, president of Verizon Wireless. “We’ve continued to see high levels of customer engagement and satisfaction.”

Over the past two years, consumers have been benefiting from competition between wireless companies, as cell phone providers have been rolling out unlimite...

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U.S. authorities temporarily lift ZTE ban

The U.S. Commerce Department is allowing China’s ZTE to partially resume business operations while regulators mull over whether its seven-year ban should be lifted.

From July 2 through August 1, the company’s restrictions will be temporarily eased so that ZTE can provide support for telecom networks and ZTE phones that were available to the public on or before April 15, when the company was initially banned from receiving crucial parts from U.S.-based suppliers.

It’s not clear whether a permanent order will follow, but ZTE is expected to be in full compliance with U.S. demands by Aug. 1, Bloomberg reports.

The telecom giant was hit with the ban almost three months ago after it failed to follow through with penalties it received for exporting sensitive technology to Iran and North Korea. It was forced to shut down operations and has been largely inactive since then.

In May, President Trump said he was considering lifting penalties on ZTE as a favor to Chinese President Xi Jinping. The Trump administration and ZTE settled on a deal that required the company to pay another $1 billion in fines, replace its management team, and hire U.S. compliance officers.

Last week, ZTE followed through with the terms by firing its executive team and appointing a new chairman. The company has reportedly lost at least $3 billion since it was forced to cease major operations in April.

Last month, the Senate voted unanimously to reinstate the ban on ZTE citing national security concerns.

The U.S. Commerce Department is allowing China’s ZTE to partially resume business operations while regulators mull over whether its seven-year ban should b...

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Samsung phones reported to randomly send out photos and messages

Samsung users are grumbling about their Galaxy S9 and Note 8 phones randomly sending out photos and texts to people in their contact list. The glitch reportedly leaves no record of anything ever being sent.

News of the problem started showing up in Samsung’s community support forums and spread quickly across the techsphere. While Samsung hasn’t released an official explanation, people who’ve experienced the mishap report the fault rests with Samsung Messages, Galaxy devices’ default messaging app.

"S9+ sent my entire photo gallery to my girlfriend last night, wrote one Galaxy S9 owner on Samsung’s support forum. "Last night around 2:30 am, my phone sent her my entire photo gallery over text but there was no record of it on my messages app. However, there was record of it on tmobile logs. Why would this happen?" As hard as he tried to find an answer, the user said no one in the comments section of the forum could figure out why it happened.

However, there are plenty of theories elsewhere as to why this is happening. Some of the complainers say they’re T-Mobile customers, which led techies to question if the issue was related to one of T-Mobile’s RCS (Rich Communication Services) updates. When ConsumerAffairs asked T-Mobile for comment, a company spokesperson referred us to Samsung.

Another hypothesis is that the problem affects only shared plans because some customers report the photos had been sent only to partners or family members.

Is there a fix?

In a statement to ConsumerAffairs, Samsung said that it will be continuing to monitor the issue.

"Samsung has reviewed this matter thoroughly these past few days; however, there were no hardware or software issues found to be relevant to this particular case. While there have been no known similar customer reports globally, we will continue to investigate this issue further. We encourage any customers who may have questions or concerns to contact their local Customer Service center at 1-800-SAMSUNG," a company representative said

While Samsung has yet to report a definitive fix, but TechCrunch reported two possible fixes for those concerned about their Galaxy S9 and Note 8 phones.

The first solution involves going into the phone’s "app settings" and turning off Samsung Message’s ability to access your storage. The upside is that taking that step will prevent the phone from sending anything -- including photos -- that’s stored on your phone. The downside is that you’ll have to turn permissions on again if you want to send photos or files through the Samsung Messages app.

The second solution is to stop using Samsung Messages until the company says the issue has been resolved and switch to a third-party messaging app instead.

Samsung users are grumbling about their Galaxy S9 and Note 8 phones randomly sending out photos and texts to people in their contact list. The glitch repor...

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Helmets R Us recalls Rollerblade-branded helmets

Helmets R Us of Tacoma, Wash., is recalling about 9,700 Rollerblade helmets.

The helmets do not meet the federal safety standard, posing a risk of head injury.

No incidents or injuries have been reported.

This recall involves Rollerblade-branded Helmets R Us helmets, used in schools’ physical education programs. The recalled helmets are white and Rollerblade is printed on the side in black.

They were manufactured from September 2011, through April 2017. Model 16, SK-501N and the manufactured date (in MM/YYYY format) are printed on a label on the inside of the helmet. “Distributed by: Helmets R Us” is printed on another label inside of the helmet.

The helmets, manufactured in China, were sold to schools nationwide for use in physical education programs from September 201,1 through April 2018, for about $16.

What to do

Consumers should immediately stop using the recalled helmets and contact Helmets R Us to receive a free replacement helmet. Helmets R Us is contacting all known purchasers directly.

Consumers may contact Helmets R Us toll-free at 877-777-9287 from 9 a.m. to 5 p.m. (PT) Monday through Friday, by email at helmet.recall@helmetsrus.net or online at http://helmetsrus.net for more information.

Helmets R Us of Tacoma, Wash., is recalling about 9,700 Rollerblade helmets.The helmets do not meet the federal safety standard, posing a risk of head...

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AT&T managers allegedly encouraged unethical DirecTV Now sales pitches

Former AT&T employees are speaking out against the company for allegedly pushing unethical sales practices on its sales teams in hopes of getting customers to subscribe to its streaming service, DirecTV Now. The groups says that consumers paid for unexpected services once they were subscribed. The company’s subscription service currently has 1.46 million subscribers.

According to an investigative report by Hawaii News Now, employees were getting fired for engaging in the very practices that upper management had been encouraging.

The report details how sales representatives would offer customers a trial service of DirecTV Now and promise to cancel the subscription for the customer prior to the automatic renewal that would cost $35 per month. Cancelling the trial for customers goes against AT&T’s policy, but employees were urged to go ahead with the practice.

“We were told by managers to cancel it to avoid any future headaches, but a lot slips through the cracks,” said Abraham Buonya, a former AT&T employee and Hawaii’s leading AT&T salesman for two years.

Getting into trouble

Though encouraged by upper management to cancel subscriptions -- even though it was against policy -- many AT&T employees say they didn’t always cancel customers’ subscriptions, leading to charges of $35 per month. Some subscribers were paying the $35 for up to seven months, despite not ever using the DirecTV Now subscription.

In some cases, AT&T sales representatives would allegedly sign a customer up for three DirecTV Now subscriptions on one single account.

All of this supposedly occurred while AT&T was running a promotion that gave customers the DirecTV subscription for just $10. However, AT&T’s system allowed employees to sign up a single customer for three individual subscriptions on one credit card, thus increasing the total number of subscriptions and meeting the quota placed on AT&T retailers.

“My manager picked up my iPad, which was signed in under me, made a fake email and then activated a DirecTV Now subscription on the email and then said if I can do it, here you go, you can do the next one,” a fired AT&T employee told Hawaii News Now.

The former employees say retailers used a similar tactic when customers came in to buy a new phone. Sales representatives would tell the customers that the purchase carried a fee, even though it didn’t. The fee could be waived, however, if the customer agreed to sign up for a trial of DirecTV Now. The trial -- which was $10 -- cost less than the fee, and customers would oftentimes agree to try the service.

“Last fall, we detected some simultaneous customer orders and cancellations of a free product trial,” an AT&T spokesperson told Hawaii News Now. “We determined some employees had violated our policies and based on our findings we took appropriate action.”

Why was this so important?

Because of the tight competition amongst AT&T retailers nationwide, many stores allegedly felt compelled to go to great -- even unethical -- lengths to be the top store. Phones don’t pull in as much of a revenue for AT&T, and so TV sales are an important part of day-to-day transactions.

Hawaii had been one of the top DirecTV Now subscription sellers in the country, though an employee who asked to remain anonymous said that roughly 90 percent of those sales were done unethically.

Buonya reported that goals for stores “would be met” no matter how lofty they seemed to employees.

“They kept pressuring us to do it,” Buonya said. Buonya was among five people at his store that were fired.

Both current and former AT&T employees are encouraging customers to be extra diligent when reviewing their statements. The phone company also reported they will be reversing unauthorized charges for customers that were affected by these sales tactics.

“Check your statements,” a current employee said. “I have no doubt that there are still people that are being charged.”

Former AT&T employees are exposing the company for pushing unethical sales practices on its sales teams in the hope of getting customers to subscribe to i...

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Security researcher says breaking into locked iPhone not that hard

Apple's security for its locked iPhones is said to be ironclad, but a cybersecurity expert says it can be circumvented, as long as you have a Lightning cable connecting the phone to a computer.

As a security feature, an iPhone can only be unlocked if you enter the correct password, and to prevent someone from guessing, the device only gives a user 10 tries. After that, a user is locked out, sometimes permanently.

The issue was in the news a couple of years ago after police seized the iPhone belonging to a man who murdered co-workers attending a holiday party in San Bernardino, Calif. Apple refused to unlock the phone, forcing authorities to turn to outside experts in an effort to crack the device.

'Brute force'

According to Matthew Hickey, a security expert and co-founder of Hacker House, a cybersecurity firm, it's not that hard to open a locked iPhone using a "brute force" method. In a series of tweets, Hickey said that if you connect the phone to a computer using a Lightning cable and enter passwords using the keyboard, instead of typing directly on the phone, you can enter an unlimited number of passwords with no adverse consequences.

When technology websites began reporting this over the weekend, Apple responded, saying it's not true. Technology site Engadget reports an Apple spokesperson as saying the phones have no vulnerability and the claim that they do is "the result of incorrect testing."

Hickey, meanwhile, posted a video on Vimeo, demonstrating his methods of cracking an iPhone.

Apple's security for its locked iPhones is said to be ironclad, but a cybersecurity expert says it can be circumvented, as long as you have a Lightning cab...

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WhatsApp will soon stop working on some phones

WhatsApp will be discontinuing support for Nokia S40, Android Gingerbread, and iOS 7, the Facebook-owned messaging app announced in a blog post.

Consumers with these operating systems will be unable to create new accounts, but they can continue to use the app until support ends.

“We’ll no longer actively develop for [old] operating systems, [so] some features might stop functioning at any time. If you currently use an older operating system, we recommend upgrading to a newer version,” the blog post states.

Here are the operating systems WhatsApp has already stopped working with:

  • Android versions older than 2.3.3

  • Windows Phone 8.0 and older

  • iPhone 3GS/iOS 6

  • Nokia Symbian S60

  • BlackBerry OS and BlackBerry 10

WhatsApp will cease support for Nokia users on December 31 of this year and February 1, 2020 for users of older Android and iOS versions. WhatsApp warned that some of the app’s features may stop working in the meantime as they are no longer "actively developing" for the operating systems.

Consumers with older operating systems are encouraged to upgrade to newer versions, such as iOS 8+, Android OS 4.0+, or Windows Phone 8.1+.

“Once you have one of these devices, simply install WhatsApp and verify your phone number on the new device. Keep in mind that WhatsApp can only be activated with one phone number on one device at a time,” WhatsApp said.

WhatsApp noted that upgrading to a phone running newer software will leave behind previous conversations since there’s currently no way to transfer chat history between devices. Chat history can, however, be attached in an email. Those interested in this option can learn more about it here.

WhatsApp will be discontinuing support for Nokia S40, Android Gingerbread, and iOS 7, the Facebook-owned messaging app announced in a blog post. Consum...

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ZTE resumes trading after two-month hiatus

Chinese telecommunications equipment maker ZTE announced that it has resumed trading following a two-month suspension, which ended last week.

Back in April, ZTE was hit with a seven-year ban on buying U.S. components after it was caught illegally trading with Iran and North Korea. The company said the ban would threaten its survival and likely hurt many U.S. companies.

As part of a deal to keep the company in business, ZTE agreed to pay up to $1.4 billion in penalties to the U.S. government and $400 million in escrow to cover any future violations. ZTE also agreed to replace its management team within 30 days, open itself up to U.S. inspections of its sites, and improve public disclosure of its supply chain.

The company said in filings on Tuesday that it would restart business operations “as soon as practicable,” but the sales ban will not be lifted until ZTE pays the fines.

The company added that it would re-publish its first-quarter financial results after assessing the impact of the seven-year ban and the settlement agreement.

Shares of ZTE Corp reportedly tumbled 42 percent as it resumed trading in Hong Kong following the two-month trading halt, which began April 17.

“While the nightmare is now over, ZTE will likely have to deal with many changes,” analysts Edison Lee and Timothy Chau at Jefferies told Bloomberg. “We expect significant near-term selling pressure and a volatile stock price.”

Chinese telecommunications equipment maker ZTE announced that it has resumed trading following a two-month suspension, which ended last week.Back in Ap...

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Trump administration reaches deal with ZTE to lift seven-year ban

Commerce Secretary Wilbur Ross confirmed to CNBC on Thursday that the Trump administration has struck a “definitive agreement” with Chinese telecom company ZTE involving a $1 billion fine and $400 million in escrow.

The news follows reports that ZTE had agreed in principle to the deal, which would end its seven-year ban on doing business with crucial U.S.-based suppliers including Qualcomm, Corning and Google.

In addition to the $1 billion penalty, the deal requires that the company change its board of directors and executive team within 30 days. The settlement also includes a U.S.-chosen compliance team.

"We are literally embedding a compliance department of our choosing into the company to monitor it going forward. They will pay for those people, but the people will report to the new chairman," Ross told CNBC.

Stringent settlement

The $400 million in escrow included in the deal is intended to cover any future violations.

"If they do violate it again, in addition to the billion dollars they are paying us up front, we had them put $400 million in escrow. The total deal is $1.4 billion. That money will be forfeited if they violate anything ... and we still retain the power to shut them down again," Ross said.

"This is a pretty strict settlement," Ross added. "The strictest and largest settlement fine that has ever been brought by the Commerce Department against any violator of export controls."

Ross said the settlement serves as a warning to other companies not to mess with U.S. trade policies.

"This should serve as a very good deterrent not only for them but for other potential bad actors," he said.

Critics cite national security threat

Lawmakers from both sides have pointed out that removing the ban could pose a potentially serious threat to national security. Before the deal had officially gone through, Senate Minority Leader Chuck Schumer expressed his concern on Twitter.

“If these reports are true, @realDonaldTrump has put China, not the United States, first. By letting ZTE off the hook, the president who roared like a lion is governing like a lamb when it comes to China. Congress should move in a bipartisan fashion to block this deal right away,” Schumer tweeted.

In a statement on Thursday, Schumer said, "When it comes to China, despite [Trump's] tough talk, this deal with ZTE proves the president just shoots blanks."

Commerce Secretary Wilbur Ross confirmed to CNBC on Thursday that the Trump administration has struck a “definitive agreement” with Chinese telecom company...

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ZTE has agreed in principle to deal that would lift U.S. ban

ZTE has agreed in principle to a settlement that would lift a U.S. Commerce Department ban preventing it from receiving crucial parts and components from American suppliers.

The ban was put in place after ZTE was found to have broken a 2017 agreement by illegally shipping goods to Iran and North Korea.

The Chinese telecom company halted major operations in May as a result of the seven-year ban imposed in April, which the company called a “death sentence.” Later in the month, however, President Donald Trump tweeted that he was pushing the Commerce Department to work with ZTE to lift the ban.

On Tuesday, the Commerce Department said that although “no definitive agreement has been signed by both parties,” the tentative deal includes a $1 billion fine against ZTE plus $400 million in escrow in case of future violations.  

"The Commerce Department plans to amend its 2017 settlement agreement and count the $361 million ZTE paid as a part of that, allowing the United States to claim a total penalty of as much as $1.7 billion, the sources said,” according to Reuters.

The deal would also require that the company replace its board and executive team within 30 days. The amended settlement agreement has not yet been signed, the sources added.

Met with concern  

Chuck Schumer (D - New York) said on Tuesday that the preliminary agreement shows Trump put China first -- a dramatic shift from his “America first” stance.

“If these reports are true, @realDonaldTrump has put China, not the United States, first. By letting ZTE off the hook, the president who roared like a lion is governing like a lamb when it comes to China. Congress should move in a bipartisan fashion to block this deal right away,” Schumer tweeted.

Mark Warner (D - Virginia) echoed the concerns previously expressed by lawmakers on both sides when he said that the move would pose a security threat.  

"If these reports are accurate, this is a huge mistake," he said in a statement. "ZTE poses a threat to our national security. That's not just my opinion – it's the unanimous conclusion of our intelligence community."

President Trump has said that reviving the embattled company is "reflective of the larger trade deal we are negotiating with China and my personal relationship with President Xi."

ZTE has agreed in principle to a settlement that would lift a U.S. Commerce Department ban preventing it from receiving crucial parts and components from A...

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U.S., China agree on outline to end ZTE ban

The United States and China have reportedly agreed on a “broad outline” that would end the seven-year ban on ZTE buying American technology, according to the Wall Street Journal.

Although the details haven’t been ironed out, the agreement would involve major changes to management and potentially heavy fines, sources familiar with the matter told the Journal. If the deal goes through, ZTE’s business would be saved.

The company said previously that it had halted “major operating activities” as a result of the ban, which prevented it from receiving parts from many of its most crucial U.S.-based suppliers, including Qualcomm.

Not off the hook

As part of the agreement, Beijing offered to remove tariffs on billions of dollars of U.S. farm products. However, one of the WSJ’s sources said “the White House was meticulous in affirming that the case is a law enforcement matter and not a bargaining chip in negotiations.”

White House economic adviser Larry Kudlow told CNBC that ZTE is “not going to get off scot-free” and that it still faces fines, as well as “very severe compliance measures, a new board of directors, [and] a new management team.”

Talk of the tentative deal comes after President Trump announced earlier this month that sanctions against ZTE had cost "too many jobs in China." In a tweet, he pledged to get the company back in business.

“President Xi of China, and I, are working together to give massive Chinese phone company, ZTE, a way to get back into business, fast. Too many jobs in China lost. Commerce Department has been instructed to get it done,” he said.

Lawmakers express concern

Trump’s pledge to save the embattled company was previously met with concern from lawmakers in both parties, who argued that overturning the ban could pose a potential security threat.

"ZTE is a Chinese telecommunications company that has been exhaustively investigated by the U.S. intelligence community, other areas of the government and the U.S. Congress,” said Rep. Dutch Ruppersberger (D-Maryland).

“They're widely suspected of spying for the Chinese government, and we cannot allow them to infiltrate U.S. networks or give them access to the U.S. market while they continue to be beholden to their government," Ruppersberger said.

Last Thursday, the House Appropriations Committee voted unanimously to accept an amendment to a bill that upheld sanctions against ZTE.

The United States and China have reportedly agreed on a “broad outline” that would end the seven-year ban on ZTE buying American technology, according to t...

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House panel rejects Trump administration’s efforts to overturn ZTE ban

On Thursday, the House Appropriations Committee voted unanimously to accept an amendment to a bill that would uphold sanctions against ZTE.

The action comes days after President Donald Trump sent out a surprising tweet calling for the Commerce Department to help give ZTE "a way to get back into business, fast.”

The amendment’s author, Rep. Dutch Ruppersberger (D-Maryland), said the amendment will stop the Commerce Department from renegotiating sanctions on ZTE.

“Supporting this amendment will show that the U.S. government stands behind the sanctions that it enacts, and will enforce them. It also further prevents foreign companies beholden to their governments from further infiltrating our U.S. networks,” Ruppersberger said in a statement.

Banned from receiving essential parts

Last month, Chinese smartphone maker ZTE was hit with a denial order that prevents it from receiving parts and components from U.S.-based vendors. As a result of the seven-year ban, ZTE recently announced that it had been forced to shut down its “major operating activities.”  

The ban was handed down after the government determined that ZTE had violated the terms of a 2017 settlement by failing to fire employees involved in illegally shipping U.S. equipment to Iran and North Korea. ZTE said previously that it was working to get the seven-year ban suspended.

A day after Trump tweeted about his intent to help the company, he followed up with another tweet that said ZTE "buys a big percentage of individual parts from US companies" and that the company is "reflective of the larger trade deal we are negotiating with China and my personal relationship with President Xi."

Security threat

Lawmakers from both parties were quick to point out the potential security risks of overturning the seven-year ban. Democrats and Republicans argue that Chinese telecom companies spy on Americans and steal intellectual property.

"ZTE is a Chinese telecommunications company that has been exhaustively investigated by the U.S. intelligence community, other areas of the government and the U.S. Congress,” Ruppersberger said.

“They're widely suspected of spying for the Chinese government, and we cannot allow them to infiltrate U.S. networks or give them access to the U.S. market while they continue to be beholden to their government," Ruppersberger said.

Senator Marco Rubio (R - Fla.) tweeted Monday that the U.S. would be "crazy" to allow ZTE to operate in the U.S. "without tighter restrictions."

"Any telecomm firm in #China can be forced to act as a tool of Chinese espionage without a court order or other review process," Rubio said.

Ruppersberger said the amendment will "prevent a foreign company that is beholden to its government – and that ignores embargoes – from infiltrating the devices and networks that are now indispensable to American life.”

On Thursday, the House Appropriations Committee voted unanimously to accept an amendment to a bill that would uphold sanctions against ZTE. The action...

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Lawmakers argue Trump plan to reverse ZTE ban poses a security threat

Days after President Trump offered an unexpected lifeline to China by tweeting that he and Chinese President Xi Jinping were “working together” to give ZTE “a way to get back into business, fast,” U.S. lawmakers are pushing back on the president’s talk of abandoning legislation that prevents the company from doing business with the U.S.

ZTE was banned from receiving parts and components from American suppliers for seven years after it violated the terms of a 2017 settlement created after it breached sanctions on Iran and North Korea.

Trump’s decision to revisit the penalty came as a surprise to many as it appeared to represent a drastic shift from his “America First” stance. On Monday, Trump defended his earlier pledge to help the company.

"ZTE, the large Chinese phone company, buys a big percentage of individual parts from U.S. companies. This is also reflective of the larger trade deal we are negotiating with China and my personal relationship with President Xi," he said in a tweet.

However, lawmakers have expressed concerns that equipment made by the telecommunications firm could pose a security threat.

Question of security

Senator Marco Rubio (R - Fla.) tweeted Monday that the U.S. would be "crazy" to allow ZTE to operate in the U.S. "without tighter restrictions."

"Any telecomm firm in #China can be forced to act as a tool of Chinese espionage without a court order or other review process," Rubio said.

“I hope the administration does not move forward on this supposed deal I keep reading about,” Rubio said at a Foreign Relations Committee hearing on Asia policy, referring to a potential arrangement that would ease the ban on ZTE in exchange for elimination of new Chinese tariffs on certain U.S. farm products, first reported by the Wall Street Journal.

“They are basically conducting an all-out assault to steal what we’ve already developed and use it as the baseline for their development so they can supplant us as the leader in the most important technologies of the 21st century,” Rubio added.

Senate Democratic Leader Chuck Schumer called the plan "a bad deal if there ever was one."

“The toughest thing we could do, the thing that will move China the most, is taking tough action against actors like ZTE," Schumer said. "But before it’s even implemented, the president backs off. This leads to the greatest worry, which is that the president will back off on what China fears most — a crackdown on intellectual property theft — in exchange for buying some goods in the short run."

The U.S. and China are preparing to continue trade talks in Washington this week, which some say is a key reason Trump has decided to revisit the ban.

"A reversal of the ZTE decision could temporarily tamp down trade tensions by allowing the Chinese to make concessions to the U.S. without losing face," Eswar Prasad, a professor of trade policy at Cornell University, told The Associated Press.

"Trump may have recognized that backing off on ZTE clears the path for him to claim at least a partial victory in the US-China trade dispute based on the concessions the Chinese seem prepared to offer,” Prasad said.

Days after President Trump offered an unexpected lifeline to China by tweeting that he and Chinese President Xi Jinping were “working together” to give ZTE...

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Trump to help ZTE ‘get back into business’

President Trump announced on Sunday that he and Chinese President Xi Jinping are working together to help ZTE, the world’s fourth-largest cell phone maker, save jobs after it pleaded guilty to selling U.S. technology to Iran and North Korea and then violated the terms of the settlement.

The two sides "are working together to give massive Chinese phone company, ZTE, a way to get back into business, fast," Trump said in a tweet, adding that he has instructed the Commerce Department "to get it done."

ZTE previously agreed to pay $1.2 billion as reparation for selling U.S. technology to Iran and North Korea. It later violated the terms of the settlement by failing to fire or discipline the employees who were involved in the illegal actions.

As penalty for its actions, the Commerce Department imposed a seven-year ban on the company that prevented it from buying parts from U.S. manufacturers. ZTE said the Denial Order would “severely impact” its business. Experts called the ban a “death sentence” for the company.

Last week, ZTE disclosed that it had halted "the major operating activities of the company” as a result of the ban.

Surprising turn of events

President Trump’s lifeline to China is being viewed as a drastic shift from his “America First” stance. President Trump has in the past accused China of stealing U.S. jobs and vowed to crack down on what he says are unfair trade practices.

A few hours later, President Trump followed up with another tweet: "China and the United States are working well together on trade, but past negotiations have been so one sided in favor of China, for so many years, that it is hard for them to make a deal that benefits both countries. But be cool, it will all work out!"

"A reversal of the ZTE decision could temporarily tamp down trade tensions by allowing the Chinese to make concessions to the U.S. without losing face," Eswar Prasad, a professor of trade policy at Cornell University, told The Associated Press.

"Trump may have recognized that backing off on ZTE clears the path for him to claim at least a partial victory in the US-China trade dispute based on the concessions the Chinese seem prepared to offer,” Prasad said.

The two countries are preparing to continue trade talks in Washington this week.

"The President's tweet underscores the importance of a free, fair, balanced, and mutually beneficial economic, trade and investment relationship between the United States and China," said White House deputy press secretary Lindsay Walters in a statement.

President Trump announced on Sunday that he and Chinese President Xi Jinping are working together to help ZTE, the world’s fourth-largest cell phone maker,...

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ZTE halts major business operations

Chinese telecommunications firm ZTE has announced that it has ceased its main business operations as it attempts to figure out how to proceed under the ban preventing it from receiving parts from U.S. suppliers.

“As a result of the Denial Order, the major operating activities of the company have ceased,” the company wrote in an exchange filing.

Last month, the U.S. government imposed a seven-year ban forbidding the company from getting parts from U.S.-based suppliers, such as Qualcomm and Dolby. The ban was handed down after ZTE was found to have violated U.S. export restrictions by illegally shipping goods to Iran, lying about it, and then failing to reprimand employees who violated the law.

Intent on resolving the ban

ZTE said previously that the ban would “severely impact” its business and likely hurt many U.S. companies. The company said on Sunday that it had submitted a request to the U.S. Commerce Department for the suspension of the ban.

ZTE now says it is trying to have the ban modified or reversed.

The company said it has been in touch with the U.S. government “in order to facilitate the modification or reversal of the Denial Order by the U.S. Government and forge a positive outcome in the development of matters.”

ZTE said in its statement that it has sufficient cash and will adhere to its commercial obligations.

“As of now, the company maintains sufficient cash and strictly adheres to its commercial obligations subject in compliance with laws and regulations,” the company wrote.

ZTE sees the next two weeks as crucial to its effort to resolve the situation with the U.S. government. “The company is currently working hard to speedily resolve this impasse,” said an email allegedly sent to Bloomberg senior staff.

Chinese telecommunications firm ZTE has announced that it has ceased its main business operations as it attempts to figure out how to proceed under the ban...

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U.S. senators express concern over the T-Mobile/Sprint merger

A group of Democratic lawmakers -- led by Senators Amy Kloubach and Elizabeth Warren --  recently expressed their concern over the potential merger between T-Mobile and Sprint.

Currently touted as the number three and number four cell phone providers in the country, the senators’ main concern involved the effect a deal would have on consumers nationwide, namely higher costs for services.

“T-Mobile and Sprint have led the way in offering wireless products and service options that are more appealing to lower-income consumers, including no contract plans, prepaid and no credit check plans, and unlimited, text, voice, and data plans,” the senators wrote.

The lawmakers sent a letter to the Justice Department’s Antitrust Division and the Federal Communications Commission (FCC) to express their thoughts on the areas of the merger they considered problematic.

“As more than three-quarters of American adults now own smartphones, including many who depend on these devices for their primary connection to the internet, an anticompetitive acquisition in the wireless market could result in higher prices for American consumers or force some people to forego their internet connection altogether,” the letter noted.

The merger takes shape

As reported in late April, T-Mobile made a formal bid to acquire Sprint for an all-stock deal of $26 billion. Initial news of the merger sparked debates in the political sector, as the U.S. Justice Department was tasked with deciding whether it would allow the companies to join forces -- reducing the number of cell phone providers from four to three -- or block the deal.

T-Mobile stands behind its decision to combine forces with Sprint, promising consumers a 5G network capable of competing with the likes of Verizon and AT&T.

John Legere, T-Mobile’s CEO and the proposed head of the merged companies, said in a recent conference call that adding Sprint to his company’s network will only help to bring customers “the highest capacity network in U.S. history.”

Legere is also confident that teaming up with Sprint will allow the two companies to achieve things for their customers that would be impossible on their own. He calls the combination a “fierce competitor” that will produce lower prices for consumers.

Will the past predict the future?

Mergers like the one proposed by T-Mobile and Sprint have been presented before the Justice Department in recent years, but they almost never come to fruition. In fact, the companies tried to merge once before in 2014, but their plans were thwarted after regulatory concerns were voiced by the Obama administration.

Regulators believed consumers benefited from having four major players in the arena, and since the wireless market could support them all, they remained as separate entities.

This time around, the senators are hoping for a similar outcome. The group sent the letter to FCC Chairman Ajit Pai and Makan Delrahim, the Assistant Attorney General for the Antitrust Division. The lawmakers were certain to note the hesitation from their predecessors in forging ahead with the merger, as less competition will more than likely lead to higher prices for consumers, as well as a decline in innovation.

“To date, T-Mobile and Sprint have exerted competitive pressures on their larger rivals in the wireless telecommunications industry, helping drive down prices, eliminating harmful contract requirements, and making more expansive and consumer-friendly data platforms the norm,” the senators wrote.

“The wireless business is already very concentrated - there were six national companies as recently as 2003 - and a deal that would further consolidate power is troubling,” Senator Elizabeth Warren noted in a New York Times op-ed. “Having fewer competitors emboldens businesses to raise prices and force consumers into long-term service contracts because they know people don’t have many options.”

A group of Democratic lawmakers -- led by Senators Amy Kloubach and Elizabeth Warren --  recently expressed their concern over the potential merger between...

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WhatsApp message bombs cause apps to crash and Android devices to shut down

A message bomb is circulating on WhatsApp that can cause the Android app or even an entire Android device to crash, according to reports. The bug occurs when a specific malicious message is sent to a device.

“As with any message bomb, it involves sending and receiving a specially crafted message with hidden symbols in between spaces. Tapping on a portion of the text will basically make the app 'expand' the hidden symbols, potentially overloading the app and even the OS," SlashGear explains.

So far, at least two variations of the message bomb have been identified. In one version, a black dot warns recipients of what will happen if they tap on it. Another message says, “This is very interesting” with an emoji of a laughing face.

Hidden symbols

Although seemingly brief, the messages contain tens of thousands of invisible "left-to-right" and "right-to-left" control characters that can overload WhatsApp, causing the app to freeze up or the whole mobile operating system to go down.

Users have reported that the text bomb is capable of affecting both the Android and iOS versions of WhatsApp, but so far only Android phones have been completely taken down by the bug. iPhone’s operating systems appear less likely to fall victim to the disruptive bug, but iPhone users have reported that their app has crashed.

Facebook, WhatsApp’s parent company, hasn’t issued a statement on the bug. That statement, as well as a solution to the message bombs, is likely to come in the next few days. In the meantime, consumers should be sure not to open any suspicious messages they receive.

A message bomb is circulating on WhatsApp that can cause the Android app or even an entire Android device to crash, according to reports. The bug occurs wh...

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ZTE has requested an end to its ban on purchasing U.S. technology

Chinese electronics maker ZTE said it has submitted a formal request to the US Commerce Department’s Bureau of Industry and Security (BIS) asking it for a reprieve of the order preventing it from doing business with U.S. technology exporters.

The filing comes roughly a month after the Commerce Department imposed a seven-year export ban on the company after finding that it lied to American officials about reproaching employees who violated U.S. sanctions on North Korea and Iran. The company pleaded guilty to the charges in March last year and was hit with $1.2 billion in fines.

ZTE previously said that the technology purchase ban threatens its existence and is likely to hurt many U.S. companies.

“The Denial Order will not only severely impact the survival and development of ZTE, but will also cause damages to all partners of ZTE including a large number of U.S. companies,” ZTE said in a statement last month.

Stay of the Denial Order

The company’s filing to the Shenzhen stock exchange on Sunday did not give details of its request, but it did say that it had provided supplemental material at the BIS's request.

ZTE Chairman Yin Yimin previously called the export ban “unfair and unacceptable” since the company had self-reported the settlement violations to Washington. The company implied that its lack of disciplinary action toward the 35 employees in question wasn’t an intentional act of defiance.

The company added that, if necessary, it could “take judicial measures to protect the legal rights and interests of our company, our employees and our shareholders.” No litigation against the U.S. has been started at this point.

The export ban came amid growing trade tensions between the U.S. and China which centered on technology-related intellectual property.

Chinese electronics maker ZTE said it has submitted a formal request to the US Commerce Department’s Bureau of Industry and Security (BIS) asking it for a...

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T-Mobile makes $26 billion bid to acquire Sprint

As expected, T-Mobile has formally made a bid to acquire rival Sprint in a $26 billion all-stock deal.

The question now is whether the U.S. Justice Department will allow the union or whether antitrust regulators will block the deal, since it would reduce the number of major wireless carriers from four to three.

These proposed deals have been blocked in the past because regulators have said changing the status quo would reduced competition and harm consumers. In announcing the deal, T-mobile anticipated those concerns, trumpeting what it said would be the pro-consumer benefits.

Among the benefits, T-Mobile says the combined companies would have the resources to develop a robust 5G network to compete with Verizon and AT&T.

T-Mobile touts consumer benefits

"The new company will be able to light up a broad and deep 5G network faster than either company could separately," T-Mobile said in its press release. "T-Mobile deployed nationwide LTE twice as fast as Verizon and three times faster than AT&T, and the combined company is positioned to do the same in 5G with deep spectrum assets and network capacity."

The company cited other possible benefits to a merger: the combined company will have lower costs and greater economies of scale, allowing it to lower prices to consumers. As a bonus, it said the merged company would employ more people than the two companies do separately, creating thousands of new jobs.

“This combination will create a fierce competitor with the network scale to deliver more for consumers and businesses in the form of lower prices, more innovation, and a second-to-none network experience – and do it all so much faster than either company could on its own,” said T-Mobile CEO John Legere.

Hard sell?

As the two smallest major wireless companies, T-Mobile and Sprint have explored ways to join forces in the past. The Obama administration opposed such a merger between the two wireless companies the last time it was proposed. It isn't clear where the Trump administration will come down on the question.

The Justice Department is currently in federal court, seeking to block the proposed merger between AT&T and Time Warner. Even though that union would be a so-called vertical merger -- joining two non-competing companies -- the government alleges the merged entity would be too big and powerful.

Craig Moffett, a founding partner at the Wall Street firm MoffettNathanson, told CNBC Monday morning he believes there is a "50-50 chance" the deal will win approval.

As expected, T-Mobile has formally made a bid to acquire rival Sprint in a $26 billion all-stock deal.The question now is whether the U.S. Justice Depa...

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T-Mobile and Sprint reportedly joining forces

T-Mobile and Sprint, the smallest of the big four wireless providers, reportedly plan to merge, creating a bigger rival to AT&T; and Verizon.

In an exclusive report, Reuters says the two telecom companies have been quietly negotiating details of their union and could be ready to announce a deal as early as next week. Neither company has publicly commented on the report.

A combination of Sprint and T-Mobile would create a wireless company with more than 127 million customers and reduce the number of competitors in a nearly saturated wireless market. For mobile communications companies to grow, they usually have to take customers away from their rivals.

Would require regulatory approval

Since a merger would reduce the number of companies offering wireless services, the deal would have to win approval from federal regulators, including the antitrust division of the U.S. Justice Department.

This would not be the first attempt to shrink the number of telecom competitors through merger. AT&T; attempted to merge with T-Mobile back in 2011, a deal that encountered so much opposition from the Justice Department that AT&T; eventually backed away.

Consumer advocates were vocal opponents of the deal as well, with an official at Consumers Union warning that the merger would have “dangerous consequences” for mobile customers.

But the Communications Workers of America backed the proposed deal, saying it would create 96,000 new positions while protecting existing jobs.

Changes in the industry

The wireless landscape has changed significantly since 2011, with the smaller players increasing the size of their networks and independent providers like Cricket Wireless and Boost Mobile providing consumers with more low-cost options.

Regulators might see the merger as reducing the number of providers, but they might also view the deal as creating a more powerful competitor for AT&T; and Verizon, the two dominant companies.

For their part, Verizon and AT&T; have moved toward becoming content providers. Verizon offers a TV programming service and recently acquired Yahoo. AT&T; owns DIRECTV and is currently defending its deal to acquire Time Warner in court after being challenged by the Trump administration.

Reuters reports its sources agree that a successful agreement to merge T-Mobile and Sprint is not a certainty. The two companies' main shareholders are trying to agree on a corporate structure that protects their interests.

T-Mobile and Sprint, the smallest of the big four wireless providers, reportedly plan to merge, creating a bigger rival to AT&T; and Verizon.In an excl...

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ZTE says export ban will ‘severely affect’ its business

Chinese electronics maker ZTE issued a statement today in response to the government’s decision to ban the company’s American exports for the next seven years. In its statement, the company warned that the ban could threaten its survival and negatively impact American companies.

“The Denial Order will not only severely impact the survival and development of ZTE, but will also cause damages to all partners of ZTE including a large number of U.S. companies,” ZTE said.

Illegal shipping and false statements

The ban was handed down earlier this month, one year after ZTE pleaded guilty to illegally shipping telecoms equipment to Iran and North Korea. The company agreed to pay $1.19 billion in penalties.

However, the U.S. said that ZTE made "false statements" to the Department of Commerce's Bureau of Industry and Security (BIS) while the investigation was still ongoing. The false statements centered around the disciplinary actions it took toward employees who were involved in the incident.

ZTE allegedly violated the terms of a 2017 plea agreement by giving employees who acted illegally full bonuses. The company also admitted that it did not fire all 35 of the employees who violated the law.

The denial of export privileges will keep ZTE from getting parts or software from U.S.-based suppliers, such as Qualcomm and Dolby.

Efforts to comply

Now, the company is saying that it tried to comply with the US and invested “tremendous resources in export compliance.” It said measures were taken against employees who may have been responsible for the incident. Additionally, ZTE said it spent $50 million on an export control compliance program in 2017.

"It is unacceptable that BIS insists on unfairly imposing the most severe penalty on ZTE even before the completion of investigation of facts, ignoring the continuous diligent work of ZTE and the progress we have made on export compliance," the company said.

ZTE says it will continue its efforts to “resolve the issue through communication.”

The company added that, if necessary, it could “take judicial measures to protect the legal rights and interests of our company, our employees and our shareholders, and to fulfill obligations and take responsibilities to our global customers, end users, partners and suppliers."

A leaked internal memo suggests that ZTE has assembled a crisis team to deal with the situation.

Chinese electronics maker ZTE issued a statement today in response to the government’s decision to ban the company’s American exports for the next seven ye...

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Government reportedly investigating AT&T and Verizon for collusion

Antitrust lawyers at the Justice Department are reportedly investigating AT&T and Verizon for possible collusion.

Published reports cite people close to the investigation as saying the government is trying to determine whether the rival wireless carriers have worked together to make it more difficult for consumers to switch from one cell phone company to another.

The Justice Department has a policy of not commenting on potential investigations.

Specifically, the probe is focusing on whether the two telecom giants have tried to block embedded SIM (eSIM) technology, a way to make it easier to switch from one communication system to another.

According to Engadget, eSIM integrates the identification technology contained on the plastic SIM card and places it into the device's processor or modem. That way, consumers can switch carriers without having to get a new SIM card.

Customer retention

For major wireless companies, losing customers to another carrier is costly. Not only does the company lose revenue, it must spend money through marketing to gain a new customer to make up for the one it lost.

Bloomberg News reports that Apple, which has been a major developer of eSIM technology, is one of the parties raising the collusion complaint. The news service quotes a Verizon spokesman as saying the whole matter is "a difference of opinion" with hardware makers on what the standard should be for the switching technology.

“Any good government inquiry is looked at and ultimately decided on merit,” Verizon's Rich Young told Bloomberg. “That was the case in 2016 and we are very confident the government will reach the same conclusion this time.”

More customers plan to switch

The data site Statista notes that consumers increasingly are looking for better deals from cell phone companies. In the spring of 2008, it counted 17.7 million wireless customers who planned to switch to another carrier. By the spring of 2017, the number had grown to over 25 million.

AT&T is already involved with the Justice Department in a lawsuit over its proposed merger with Time Warner.

The government argues that the combined company would be too big and powerful. However, AT&T says merging its wireless business with a content producer like Time Warner would not harm competition.

Antitrust lawyers at the Justice Department are reportedly investigating AT&T; and Verizon for possible collusion.Published reports cite people close t...

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Department of Commerce bans ZTE from exporting tech from U.S.

Earlier today, Chinese electronics maker ZTE was hit with a seven-year ban on American exports from the U.S. Department of Commerce. The restriction will keep ZTE from getting parts from U.S.-based suppliers, such as Qualcomm and Dolby.

The ban comes a year after ZTE allegedly violated the terms of a 2017 settlement.

In March 2017, the electronics giant pleaded guilty of illegally shipping telecommunications equipment to Iran and North Korea and agreed to pay $1.2 billion in penalties. The company was also supposed to revoke the bonuses of any employees involved.

However, the company was found to have violated the terms of the settlement when it was discovered that employees who engaged in illegal conduct were not penalized. Some of them even got their full 2016 pay bonuses.

Didn’t honor the agreement

"ZTE made false statements to the U.S. Government when they were originally caught and put on the Entity List, made false statements during the reprieve it was given, and made false statements again during its probation," Secretary of Commerce Wilbur L. Ross, Jr. said in a statement.

“ZTE misled the Department of Commerce. Instead of reprimanding ZTE staff and senior management, ZTE rewarded them. This egregious behavior cannot be ignored.”

A senior department official told Reuters that ZTE, “provided information back to us basically admitting that they had made these false statements.”

“We can’t trust what they are telling us is truthful,” the official continued. “And in international commerce, truth is pretty important.”

The export ban comes amid escalating tariffs and growing fear of a trade war between the U.S. and China.

Earlier today, Chinese electronics maker ZTE was hit with a seven-year ban on American exports from the U.S. Department of Commerce. The restriction will k...

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Robocalls surge 24 percent in February

Consumers were bombarded with nearly 2.75 million robocalls in February, up 24 percent over February 2017, according to YouMail, a visual voicemail service.

That works out to more than 98 million robocalls per day, a new record volume counted by the YouMail Robocall Index.

"We know the robocalling problem continues to bedevil U.S. consumers and businesses by wasting our time, costing us money and causing untold levels of frustration for Americans in all walks of life," said Alex Quilici, CEO of YouMail.

Quilici says consumers should avoid answering calls from unknown numbers and instead let them go directly to voicemail. He also recommends an app that blocks robocalls.

Government agencies, meanwhile, may take steps to reduce the number of these computer-generated calls, which are illegal when made to cell phones.

In recent years, robocalls have become a favorite tool for scammers, allowing them to target thousands of potential victims in a matter of seconds.

United front against robocalls

In the next few weeks, the Federal Trade Commission (FTC) and Federal Communications Commission (FCC) plan to hold joint events to fight illegal robocalls -- especially those that employ caller ID spoofing, a tactic which makes it appear as though the call is coming from a different number, exchange, or area code.

“Scam robocalls and deceptive spoofing are real threats to American consumers, and they are the number one consumer complaint at the FCC,” said FCC Chairman Ajit Pai. “We’re committed to confronting this problem using every tool we have. I’m pleased to announce these efforts in our continued work with the FTC to protect consumers.”

On March 23, the two agencies will conduct a policy forum to explore the regulatory challenges in controlling the proliferation of robocalls. Specifically, the forum will look for ways to allow telephone companies to block calls generated by machines. Registration is not required for this event.  It will be webcast at fcc.gov/live with open captions.

Then on April 23, the two agencies will co-host a technology expo for consumers at the Pepco Edison Place Gallery in Washington, D.C. The event will feature technologies, devices, and applications to deflect unwanted robocalls.

Additional information is available here.

While the FCC previously proposed rules designed to curb robocalls, a coalition of consumer groups says the rules need more teeth. The FCC proposal would allow voice service providers to block some "spoofed" robocalls.

Consumers were bombarded with nearly 2.75 million robocalls in February, up 24 percent over February 2017, according to YouMail, a visual voicemail service...

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BlackBerry sues Facebook over patent infringement

BlackBerry Limited is suing Facebook over patent infringement, according to a lawsuit filed in a U.S. District Court in California.

In the lengthy 117-page lawsuit, BlackBerry claims that Facebook “created mobile messaging applications that co-opt Blackberry’s innovations,” and use a number of patents that made BlackBerry’s products “such a critical and commercial success in the first place.”

"[W]e have a strong claim that Facebook has infringed on our intellectual property, and after several years of dialogue, we also have an obligation to our shareholders to pursue appropriate legal remedies," BlackBerry said in a statement.

Patents held by BlackBerry include message encryption, battery and message notifications, and combining messaging with gaming.

Facebook dismisses claims

Blackberry contends that Facebook, its Instagram photo sharing app, and its WhatsApp messaging service use technologies -- such as cross-platform sharing -- that are based on existing Blackberry patents.

"As a cybersecurity and embedded software leader, BlackBerry's view is that Facebook, Instagram, and WhatsApp could make great partners in our drive toward a securely connected future, and we continue to hold this door open to them," BlackBerry said.

Facebook dismissed the claims and said it plans to fight back.

“BlackBerry’s suit sadly reflects the current state of its messaging business,” said Facebook’s Deputy General Counsel Paul Grewal. “Having abandoned its efforts to innovate, BlackBerry is now looking to tax the innovation of others. We intend to fight.”

Blackberry is seeking “redress for the harm caused by Defendants’ unlawful use of BlackBerry’s intellectual property,” which may include injunctive relief and damages accounting for lost profits.

BlackBerry Limited is suing Facebook over patent infringement, according to a lawsuit filed in a U.S. District Court in California.In the lengthy 117-p...

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Consumer groups want tougher rules to block robocalls

The Federal Communications Commission (FCC) has proposed new rules aimed at curbing unwanted robocalls, but a coalition of consumer groups argues the rules don't go far enough.

The FCC proposal would allow voice service providers to block some "spoofed" robocalls -- calls that appear to originate from a local number when they could be made from overseas.

But in comments filed with the agency by the National Consumer Law Center, Consumers Union, the Consumer Federation of America, Consumer Action, National Association of Consumer Advocates, and Public Citizen argue the proposed rule is already behind the curve.

“The FCC rules do something: they allow telephone companies to block spoofed calls from numbers that do not actually exist. But spoofers have simply moved to make fraudulent calls from real numbers—meaning that the rules do not cut down on the spoofed calls at all,” said National Consumer Law Center Senior Counsel Margot Saunders.

Saunders likens it to closing one door of a double door to keep the mice out, but if the second door is open, the mice will simply use it.

"Moreover, the rules are not even mandatory so telephone companies are free to ignore them,” she said.

Recommendations

The groups call for some type of meaningful authentication for all calls, along with a robust robocall-blocking tool. That, they say, would take care of most of the problem.

Scammers have made extensive use of robocalls in recent years, since the technology allows one operator to make a large number of calls at once. When a recipient answers, a recorded voice is designed to keep them on the line. Since a large percentage of scam calls end in hang ups, it allows a fraudster to focus on the few potential victims who are still listening when the message ends.

The consumer groups say the FCC rule should require telephone companies to provide free, effective caller ID authentication for every call, along with free call-blocking services. Some mobile providers already have that capability.

“Bad actors are continuing to find ways around the rules to prevent fraudulent robocalls and take advantage of consumers, but there is more that can be done to protect consumers,” said Maureen Mahoney, policy analyst at Consumers Union.

“The FCC should ensure that consumers can control the calls they receive by requiring that phone companies provide blocking technology free of charge to consumers.”

Staggering number of robocalls

In 2016, the YouMail National Robocall Index (YNRI) estimated that somewhere around 2.3 billion robocalls were made in the U.S. in the month of January alone, a staggering 51,523 calls per minute.

The Federal Trade Commission (FTC) says some types of robocalls are permitted under the law. For example, your doctor's office may use a robocall to remind you of an appointment. Political messages may be delivered with a robocall, as can messages from debt collectors.

However, using a robocall to sell any type of product or service is illegal. When you get one of these calls, you should hang up immediately, the FTC advises.

The Federal Communications Commission (FCC) has proposed new rules aimed at curbing unwanted robocalls, but a coalition of consumer groups argues the rules...

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AT&T: first 5G device won't be a smartphone

Telecom giant AT&T is moving ahead with plans to develop its 5G wireless network, but company CEO Randall Stephenson says the first device to connect to the super high-speed network won't be a smartphone.

In a conference call following Wednesday's AT&T earnings report, Stephenson said smartphone manufacturers are still on the drawing board when it comes to making a 5G phone. So Stephenson says AT&T will produce a device, called a "puck," that will act like a mobile hotspot, allowing consumers to connect their existing devices to the 5G network.

AT&T has not said when the puck would be available or how much it would cost. However, Stephenson says the device will be a way for customers to sample the 5G service before purchasing a 5G smartphone.

"We're getting the equipment manufacturing moving, we're getting the supply chains moving, we're doing the sell-side acquisition, we're doing all the build type work, but getting the handsets at scale penetrated into the market will slow things down," Stephenson told investors and analysts.

"So, that's why we're going to be offering pucks in the first part of our deployment in these 12 markets, so it is a mobile solution."

Will work like a modem

Stephenson says consumers will be able to use the pucks like a modem. Once connected, they will be able to access the internet using AT&T's 5G network with a full gigabit throughput.

But Stephenson said he thinks one of the biggest advantages 5G will offer is a huge reduction in latency, the time between an online command is entered and when it is executed. Reducing latency will make 5G more efficient for certain uses, such as virtual reality and self-driving vehicles.

"People say 5G and you're thinking about speed," Stephenson said. "And speed and throughput are important. But the most important element is latency and having low latency 5G is the first technological innovation that truly gets us to low latency."

Twelve markets this year

A month ago AT&T announced that it would deploy 5G wireless service in at least a dozen markets by late 2018, as the first step in a nationwide build out. In December, Verizon also announced it planned to offer 5G wireless service in up to five U.S. markets in 2018.

Telecom experts say the transition from 4G to 5G will be a fundamental, not incremental, change. Instead of being limited to connecting hundreds of millions of cell phones and tablets used by people, 5G networks will support billions of connected things.

Stephenson told analysts that once a nationwide wireless 5G network is up and running, it could replace most fiber optic networks.

Telecom giant AT&T; is moving ahead with plans to develop its 5G wireless network, but company CEO Randall Stephenson says the first device to connect to t...

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Hackers can use phony apps to access your personal information

Consumers who may have received a new smartphone over the holidays should take steps to protect it from phony apps. Security experts are warning that hackers can use malicious versions of these programs to fool users into sharing sensitive personal information.

Using smartphone apps, hackers can steal passwords, credit card and banking account information, and information about people in your contact lists. Criminals can even infect your smartphone with malware, dupe you into sending money, or lock your phone and demand ransom to unlock it.

Phony apps can sometimes be difficult to spot since they’re often promoted on websites or through marketing emails, which can appear to be legitimate offers from a leading brand in e-commerce.

Unfortunately, consumers fall victim to this kind of scam more than you think. Just a few months ago, a fake version of the mobile app WhatsApp was downloaded by more than a million consumers.

Avoiding phony apps

In this digital age, it’s crucial for consumers to take the time to research the technology they use in their daily lives -- especially before handing over money, sharing personal information, and downloading apps.

To protect your smartphone, experts from the Pennsylvania Department of Banking and Securities recommend taking the following precautions:

  • Use official app stores. Consumers are urged to only download apps from official app stores such as Google or Apple. Additionally, investigate any potential downloads beforehand since the screening processes of these official stores aren’t foolproof.

  • Stay up to date. Keep your phone’s operating system up to date, especially with system patches tagged as “critical security update.”

  • Protect personal information. Be wary of apps that ask for permission to access information unrelated to the performance of the app, like access to contacts, text messages, administrative features, stored passwords, or banking and credit card info.

  • Don’t be fooled by reviews. Reviews can be forged by criminals, and a high number of downloads can simply indicate that the scammer was successful in fooling a large number of victims. Before downloading an app, always look at the developer to make sure it’s a brand you recognize.

  • Watch for typos. Poor grammar or spelling mistakes in the description of an app is a red flag, since malware campaigns often feature a lack of marketing professionalism.

  • Delete what you’re not using. If you are no longer using an app on your phone, delete or uninstall it.

  • Use parental controls. To protect your child’s device, consider enabling parental controls on their device so you have the power to review any downloads.

  • Go the extra mile. If you believe you have downloaded a phony app, do more than just delete the app. Some phony apps can make themselves “invisible” and look as though they have been deleted, so be sure to restore your phone to its factory settings and change all passwords.

Consumers who may have received a new smartphone over the holidays should take steps to protect it from phony apps. Security experts are warning that hacke...

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Study reveals potential security flaw in smartphones

Researchers say certain instruments in today’s smartphones could enable hackers to guess a user’s PIN. 

A new study, led by Dr. Shivam Bhasin of Nanyang Technological University, Singapore (NTU), found that common sensors in most smartphones–such as accelerometer, gyroscope, and proximity sensors–may highlight a significant security vulnerability in smartphones.

Using a combination of information gathered from six different sensors found in smartphones and machine learning algorithms, the researchers were able to unlock Android smartphones with a 99.5 percent accuracy within just three tries when the device had one of the 50 most common PIN numbers.

Shows which numbers were pressed

Researchers used the sensors in a smartphone to show which number had been pressed by its user based on how the phone was tilted and how much light was blocked by the thumb or fingers. 

“The hack exploits unintentional physical activity of the phone that is captured by the sensors.

When a user enters their PIN, the sensors detect activity,” Bhasin, senior research scientist at the Temasek Laboratories at NTU, told ConsumerAffairs.

“This activity is slightly different for each digit and can be distinguished for each digit.

Using machine learning algorithms, a PIN recovery mechanism is developed on this idea, to find the whole 4-digit PIN.”

Beat previous success rate

The technique the researchers used beat the previous best phone-cracking success rate of 74 percent for the 50 most common PIN numbers. 

The hack showed that by measuring unintentional physical activity of the sensor, it’s possible to capture a user’s private data. Although the study was limited to PIN numbers, the researchers say other private data (like a user’s daily routine) could potentially be exploited. 

The researchers say the hack can be used to guess all 10,000 possible combinations for four-digit PINs. However, for the proposed hack to take place, the attacker would need a malicious app to access sensor data. 
To keep cell phones safe, Bhasin recommends being extremely selective about apps and websites, as hackers typically bury malware in seemingly harmless features.
The researchers also recommend choosing PINs with more than four digits, as well as using secondary identification, like fingerprint scans, two factor authentication, or facial recognition software where applicable.

The full study has been been published online in the Cryptology ePrint Archive.

Researchers say certain instruments in today’s smartphones could enable hackers to guess a user’s PIN. A new study, led by Dr. Shivam Bhasin of Nanyang...

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Study claims smartphone addiction can alter the brain

An international study presented at suggests being addicted to a smartphone can create a chemical imbalance in the brain.

To assemble the subjects, the researchers used standard tests to measure the extent of attachment to and dependence upon a mobile device. Dr. Hyung Suk Seo, professor of neuroradiology at Korea University in Seoul, identified a small group of young people as being "addicted" to their smartphones. 

He and his team then used magnetic resonance spectroscopy (MRS) to measure their brains’ chemical composition.They found that, compared to healthy control subjects, smartphone-dependent subjects showed higher ratios of gamma aminobutryic acid (GABA) to glutamate-glutamine (Glx).

GABA is a neurotransmitter that slows brain signals, while Glx increases neuron activity.

"The increased GABA levels and disrupted balance between GABA and glutamate in the anterior cingulate cortex may contribute to our understanding the pathophysiology of and treatment for addictions," Dr. Seo said in a release.

Moreover, Dr. Seo expressed concern for the clinical implications this imbalance could have on young people’s anxiety and depression. More research is needed, but the team’s smartphone-dependent subjects showed marked improvement following cognitive behavioral therapy.

Designed to be addictive?

Adam Alter is author of the book about smartphone addiction, "Irresistible." On the NRR Program "Fresh Air" in March, Alter said technology is designed to be addictive.

"If I'm addicted to, say, World of Warcraft, the minute I start firing up the game ... my brain will look [in a scan] very much like the brain of someone who's addicted to heroin and is preparing the next hit," he told interviewer Dave Davies.

Management consultant Simon Sinek agrees that certain technology is addictive. But the most addictive technology, he says, is the one that connects people.

"We know that engagement with social media and our cellphones releases a chemical called dopamine," Sinek says in a video interview that has gone viral on YouTube. "That's why when you get a text, it feels good. Dopamine is the same chemical that makes us feel good when we smoke, when we drink, and when we gamble."

Nomophobia

Science has even come up with a name for smartphone addition -- nomophobia, an abbreviation of “no mobile phobia”. And it's not a recent discovery.

As early as 2012, 84 percent of consumers in a Time magazine poll said they couldn't go a single day without their mobile phones. One in four told survey-takers they check their phones at least every 30 minutes.

But experts say that, in itself, may not signal addition. A sales person constantly using a phone to check email from clients and stay in touch with the office may only be maximizing an important tool, which is different from someone checking Instagram every 30 minutes.

Psychologists have developed a number of tests designed to reveal smartphone addiction. Tell-tale indicators include the number of times a person checks his or her phone during a given period, whether a phone interferes with relationships with family and friends, and sleeping with the device.

An international study presented at suggests being addicted to a smartphone can create a chemical imbalance in the brain.To assemble the subjects, the...

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Moisture detected: the harrowing journey of a water resistant phone that got wet

Despite sky-high sales, Samsung has faced criticism about the durability of its Galaxy smartphones, and the performance of Samsung’s newest Galaxy S8 and S8+ models in water may once again prove to be a disappointment to customers. 

Before competitors like Apple debuted their own sturdier, more water-resistant devices, Samsung led the pack last year with a commercial showing Lil Wayne dousing his Galaxy S7 Edge in champagne. Reviewers celebrated the new generation of Galaxy smartphones and their supposed ability to withstand up to 30 minutes of water exposure. 

But the Galaxy S7 Active model failed water dunking tests conducted by Consumer Reports later that year. Facing criticism, Samsung agreed to give S7 Active owners a free exchange if they encounter “issues related to water damage.” Even then, the warranty only applied to people who had their phones for less than a year.

In subsequent marketing material, Samsung assured customers that the apparent problem had been corrected. Samsung’s new Galaxy S8 and S8+ models “are water and dust resistant, faster, and more efficient...,” an advertisement says. Which means what exactly? "...which means you are too,” the S8 advertisement says.

But Samsung’s promises are only as good as its guarantees. If the Galaxy S8 phones prove to also hold up poorly in water, just as the S7 Active did, can customers get a new phone, or at least their $800 refunded? This is a question that Samsung has yet to answer. 

The dreaded “moisture detected”

My husband purchased the Galaxy S8+ largely because of its advertised durability, including the IP68 label certifying the phone can handle submersion in up to five feet of water for thirty minutes. Consumer Reports, the independent testers who exposed the flaws in the S7 Active, gave glowing reviews of the S8 models. The organization dunked the S8 phones in pressurized tanks and reported that they operated normally “right after” retrieving them and continued to function well 24 hours later.

Based on this, we weren’t very worried when my husband's phone fell out of his pocket at a marina several weeks ago. He quickly snatched the phone from the water and it seemed to work fine immediately afterward. 

When he tried to charge the Galaxy that evening a notice appeared: moisture detected in the port. We tried placing the phone on rice and on a fan for days at a time, but the phone still refused to charge due to “moisture." 

Of course, Samsung Galaxy owners have experienced far worse catastrophes than this -- the recall of the Samsung Galaxy Note 7 phones due to their occasional tendency to explode has left a major dent on the company’s reputation. But with no working battery, my husband's Galaxy was as good as useless. By our estimates, the phone wasn’t in the water for longer than ten seconds.

This does not appear to be a problem that is unique to us. YouTube videos and user-submitted comments online – including a forum on the Samsung webpage itself – tell similar stories of a Galaxy S8 that will not charge because of “moisture detected.” 

One commenter on the Samsung site said that her S8 was “barely splashed” before the moisture detection notice appeared. Another with the same problem couldn’t recall her phone ever being exposed to water at all. 

Based on users’ online comments, no official policy is in place from Samsung for these scenarios, meaning customers are left to effectively wait and see what the company tells them.

The AT&T website is clear when it comes to its older model, the Galaxy S7. Samsung will replace  “any Galaxy S7 active under its standard limited warranty, should water damage occur,” the company tells customers.

When my husband and I visited our local AT&T store for help, workers were fairly certain that the S8+ should also be covered for water damage under that same warranty, and we were told to contact Samsung directly. 

The customer service representative at the Samsung call center deflected when I told her that we dropped the phone in water for just a moment. The Galaxy S8 “is water resistant,” she said, “not waterproof.”

She said that Samsung would consider repairing the phone, if we were willing to send it in and wait at least five business days while they inspected it. Given the vagueness and lack of documentation, we opted to pay our insurance deductible instead.

Samsung won’t disclose its policy to reporters

When contacted repeatedly by ConsumerAffairs, Samsung’s press team refused to explain how it handles water-damage claims for the S8 phones, agreeing only to comment on the S8 off the record.   

Paraphrasing the “off the record” information, I was given points nearly identical to Samsung’s advertising that did not answer whether water damage is covered by a warranty. A press release I was sent did nothing to clarify the issue.

Samsung later agreed to send ConsumerAffairs a prepared statement, but that was similarly empty on answers. “Any consumer with questions about a Samsung product should contact us directly at 1-800-SAMSUNG,” it says. "While every customer inquiry we get is different, we look into each inquiry we receive and work to resolve it on a case-by-case basis."

Two AT&T employees, one Samsung call center worker, and two Samsung spokespeople later, and there are still no definitive answers about how Samsung will handle complaints from customers encountering water-damage issues with S8 Galaxy phones. The best advice we can provide is to not let your phone get wet, no matter what the advertising says. 

Despite sky-high sales, Samsung has faced criticism about the durability of its Galaxy smartphones, and the performance of Samsung’s newest Galaxy S8 and S...

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Judge turns aside pleas for cheaper phone calls for prisoners

Back in the last millennium, Congress tried to increase competition in the telephone industry and passed a gigantic bill that, a few decades later, has created a patchwork in which some types of consumers enjoy plenty of companies competing for their business while others enjoy nearly none.

Residents in affluent areas, for example, often have multiple broadband carriers offering high-speed fiber connections at competitive prices while rural consumers are stuck with slow-speed telephone lines.

But of everyone affected by the legislation, no one has fared worse than prisoners and their families. Local and state governments, seeing an opportunity to make a few bucks off the backs of prisoners, have cut deals with private providers who operate the jailhouse phone systems, charging exorbitant rates to those unlucky enough to place or get a call from prison.

You might think the courts would outlaw the practice, but despite a few limited actions, that hasn't been the case so far. Just yesterday, a federal judge in California pitched four lawsuits challenging the price-gouging, according to a Courthouse News Service report. 

"Grossly excessive" rates

Plaintiffs had charged that Alameda, Contra Costa, San Mateo, and Santa Clara counties had contracted with Global Tel Link Corp. and Securus Technologies, allowing them to charge "grossly excessive" rates to inamtes and their families.

The plaintiffs had argued the Ninth Circuit has recognized a First Amendment right to telephone access, and that the commissions amount to unconstitutional taxes on that right.

But U.S. District Judge Yvonne Gonzalez Rogers granted a motion by the counties to dismiss the suits.

“That the commissions charged may result in higher phone rates, which, in turn, may reduce the frequency and length of phone calls made, does not constitute a governmental restriction on plaintiffs’ constitutional rights,” Gonzalez Rogers wrote in a 26-page order.

Gonzalez Rogers said the Ninth Circuit ruling applied to prisoners who were denied access to a telephone and did not deal with pricing issues.

The judge also turned aside the claim that the counties were in violation of antitrust laws, noting that state law bars antitrust action against governmental units.

Back in the last millennium, Congress tried to increase competition in the telephone industry and passed a gigantic bill that, a few decades later, has cre...

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T-Mobile says its customers get fewer scam calls

When you answer the phone, you sometimes know the person on the other end of the line is a scammer in the first few seconds of conversation.

But if you're a T-Mobile customer, you might know before you even answer the call. Thanks to a recently introduced, free feature from the mobile provider, your phone's caller ID will display the message "scam likely."

The carrier says its Scam ID service flashes the warning when it sees an incoming call from a number used by a known scammer. It says the service works on all cell phones that have Caller ID.

Consumers aren't required to install anything and it's provided on all post-paid plans. Last month T-Mobile expanded the service to all Metro PCS customers.

Scam Block

A companion service, Scam Block, actually blocks calls from known scammers from ringing a customer's phone. It's available on all post-paid plans at no additional charge.

Since launching in April, T-Mobile says Scam ID and Scam Block have identified or blocked more than 243 million calls and estimates the services have prevented more than $130 million in scams.

“Scam ID and Scam Block are perfect examples of what the T-Mobile and MetroPCS are all about—we give you more without asking more from you,” said Mike Sievert, T-Mobile's chief operating officer. “These advanced protection technologies put our customers in control, and even better, they are totally free!"

Scammers keep bankers' hours

T-Mobile says it's also learned something about scammers' habits since it launched the new service. Most scammers, it says, like to work normal business hours, from 8 am to 5 pm, Monday through Friday.

Peak time for scam calls is late afternoon. On average, it identifies a half-million scam calls per hour as the business day draws to a close.

Scammers also try to hide their tracks by using a new number every few calls. Of over 500,000 scammer phone numbers the system identified, T-Mobile says only around 24,000 numbers repeatedly make scam calls.

When you answer the phone, you sometimes know the person on the other end of the line is a scammer in the first few seconds of conversation.But if you'...

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Robocaller fined $2.88 million for calling wireless phones

You might remember the days when the operator would instruct you to deposit more coins if you wanted to continue your pay phone call. A New Mexico company, Dialing Service, has been instructed to deposit $2.88 million for calls it already made.

The problem is that the calls in question were robocalls and they were made to wireless phones without consumers' consent, thereby raising the hackles of the Federal Communications Commission.

In 2013, the FCC’s Enforcement Bureau formally warned Dialing Services that it could be held liable for robocalls its customers were making in violation of the Telephone Consumer Protection Act. The TCPA prohibits autodialed phone calls, robocalls, or texts to wireless phones in most instances unless the caller has the prior express consent of the called party. 

Following the citation, the Bureau investigated and determined that Dialing Services’ platform was still being used to make unlawful robocalls.  The fine reflects the Commission’s determination that Dialing Services was involved in making 180 unlawful robocalls after being warned to stop. 

The Commission has made clear that a third party, such as a platform provider, may be liable under the TCPA if the platform provider is so involved in the placement of a call that it essentially made the call. 

The Commission determined that Dialing Services played a significant role in the illegal robocalls, and thus should be held liable for violating the TCPA.  For example, Dialing Services’ platform automatically blocks the originating telephone number and enables caller ID spoofing. 

You might remember the days when the operator would instruct you to deposit more coins if you wanted to continue your pay phone call. A New Mexico company,...

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Samsung Galaxy S8 winning positive consumer reviews

What's the best smartphone on the market at the moment? It's a highly subjective question, since consumers value different things.

But to get a handle on which devices are doing the most to satisfy their customers, the Consumer Sentiment Analysis (CSA) service at Strategy Analytics scanned smartphone reviews posted by U.S. consumers.

It found that early adopters have given the Samsung S8, which was introduced in April, an average rating of 4.57 out of 5, making it the highest rated smartphone on the market.

The phone boasts new screen dimensions and an artificial intelligence (AI) assistant called Bixby. In the first 40 days the phone was on the market, the study found more than 1,500 buyer reviews.

Display is winning fans

Reviewers specifically commented positively on the Galaxy S8 display. The term "display" appeared in almost one-third of all reviews of the device.

Reviewers also had good things to say about the camera. The survey gauged sentiment "very positive" and noted that the camera got a mention in 19% of all reviews.

On the other hand, users didn't seem all that impressed with Bixby. The survey found the AI assistant got a mention in only 4% of reviews, and those that mentioned it were marginally negative.

"Based on our analysis of the first 40 days of buyer reviews, Strategy Analytics believes that Samsung's Brand Equity and an impressive new display are the primary reasons that the Galaxy S8 has achieved Apex Product status in the US smartphone market," said Adam Thorwart, lead analyst and author of the report.

He also said the phone's display, which is 14% larger than previous models, is a big selling point with early adopters.

Comeback

It would suggest the phone is helping Samsung recover from its disastrous launch last year of the Galaxy Note 7, whose battery tended to overheat and catch fire, requiring a complete product recall. But until that defect emerged, the Note 7 was at the top of Consumer Reports' smartphone rankings.

Samsung is preparing the release of the follow-up device, the Galaxy Note 8, which TechRadar calls "the biggest comeback story in phones." Samsung has not revealed a release date but confirmed that it will occur later this year, which could coincide with an expected Autumn release of Apple's iPhone 8.

Since this is the 10th anniversary of the original iPhone release, tech sites like CNET expect Apple to pull out all the stops, with major redesigns and features.

What's the best smartphone on the market at the moment? It's a highly subjective question, since consumers value different things.But to get a handle o...

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Phony robocalls may cost the caller $120 million in fines

A robocaller who allegedly placed calls claiming to be from TripAdvisor picked the wrong company to impersonate. Consumers who were on the receiving end of the calls complained to TripAdvisor, which did a bit of sleuthing on its own and identified Adrian Abramovich of Miami as the culprit.

TripAdvisor then complained to the Federal Communications Commission (FCC), which had been hearing from other consumers and companies, including Spōk, a medical service that links hospitals and physicians. Spōk had also fingered Abramovich and dropped a dime on him as well.

Today, the FCC proposed fining Abramovich $120 million for making nearly 100 million spoofed robocalls in violation of the Truth in Caller ID Act. 

The FCC said that consumers who received the calls were told to press 1 to hear about vacation promotions from TripAdvisor, Marriott, Expedia, Hilton and others.

Those who did so were then transferred to overseas call centers where operators tried to sell them timeshares and other vacation packages. 

Abramovich used what has been called “neighbor spoofing,” the FCC said, choosing phony numbers with the same area code and exchange as the numbers he was calling. This led consumers to think the call might be from someone they knew.

Earlier today, the FCC’s Enforcement Bureau also issued a citation to Abramovich for apparent violations of the Telephone Consumer Protection Act’s robocall limits and the federal wire fraud statute, which could result in additional fines and penalties.

A robocaller who allegedly placed calls claiming to be from TripAdvisor picked the wrong company to impersonate. Consumers who were on the receiving end of...

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Virgin Mobile offering one year of wireless service for $1

An old rule of thumb in the consumer protection business is that if something sounds too good to be true, it probably is. But Virgin Mobile insists that's not the case with its latest offer -- one year of unlimited talk, text, and data for $1.

Not only that, but the $1 deal also includes membership in the "Virgin Inner Circle," which includes perks like a free one-night stay at a Virgin hotel or a companion ticket for flights to the U.K.

There is, however, one hitch: you must buy a new iPhone from the Apple Store or the Virgin Wireless website. That will set you back anywhere from $400 to $970. 

The fine print

The offer becomes effective today and the $1 deal is only for customers who sign up within the first 30 days. After that it reverts to a six-month offer. When the promotional year or six months is up, service will be $50 a month.

Even with those provisos, it's a rather dramatic promotion. Angela Rittgers, chief marketing officer at Virgin Mobile, said the company's "biggest struggle is how to make sure consumers understand there is no gimmick behind this," according to a report in Ad Age

Sprint made a similar offer last week, offering consumers a free year of service if they switch from AT&T, T-Mobile, or Verizon and provide their own device. Sprint owns Virgin Wireless, which may explain the similarity.

Virgin Wireless hasn't exactly set the world afire. It trails most of its competitors and there had been reports last year that Sprint was planning to scale it back, but Rittgers says the $1 deal may be sufficiently disruptive to give Virgin a much-needed boost, saying it's "the longest test drive someone will ever take."

An old rule of thumb in the consumer protection business is that if something sounds too good to be true, it probably is. But Virgin Mobile insists that's ...

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Tips for improving Android device security

With consumers increasingly using their mobile devices for all electronic transactions, including banking, there is growing concern about the security of mobile devices.

The National Cybersecurity Center of Excellence, part of the Commerce Department, says ensuring the security of the information that a mobile device accesses, stores, and processes is a difficult cybersecurity challenge with no easy solution.

It finds that security controls haven't kept up with the risks posed by smartphones and tablets. This can be a critical issue in business environments, when employees are using personal devices to connect to a corporate network.

Security tips

Android device users should not use unknown, free, and unsecured Wi-Fi connections without VPN technology. At the same time, keeping your phone's Wi-Fi and Bluetooth enabled all the time makes it easier for hackers to access your phone.

App downloads can also be a security risk. When you download an app, obtain it from a known, reputable source. Just like you would on a PC, avoid clicking on links unless you are completely sure of the source.

Passwords on mobile devices are just as important on mobile devices as they are on PCs. Try to use complex passwords and change them frequently.

"As Android system and mobile internet usage continues to grow, traditional antivirus apps are no longer sufficient," said Pan Qi, Vice President of Cheetah Mobile, which this week introduced a free mobile security app, CM Security Master.

Threats to government networks

A report issued in April by the Department of Homeland Security underscored the threat to the U.S. government. Despite being a minor segment in the overall marketplace, the report said mobile devices used by government employees "represent an avenue to attack the back-end systems containing data on millions of Americans," not to mention the sensitive information about governmental functions.

The report notes that in the U.S., there are no requirements requiring carriers to run encryption or provide privacy protections on their networks.

Consumers who want to improve the security of their Android devices have lots of options. Tech site Tom's Guide provides recommendations for the best mobile security apps in three categories.

Learn more in the ConsumerAffairs Cell Phone Buyers Guide.

With consumers increasingly using their mobile devices for all electronic transactions, including banking, there is growing concern about the security of m...

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Congressman wants action on battery fires, explosions

A New Jersey Congressman would like to energize the federal agencies he thinks should be doing more about the problem of fires and explosions caused by lithium-ion batteries.

The problem is not exactly new. The batteries have been causing problems for years, in hoverboards, laptops, smartphones, e-cigarettes and other gadgets, and Rep. Frank Pallone, Jr. (D-N.J.) says the Consumer Product Safety Commission (CPSC) and Food and Drug Administration (FDA) should do something about it.

In a letter to the heads of each agency, Pallone is asking for a briefing to find out what, if anything, is being done. He notes that both agencies made an initial effort but that not much appears to have happened since then. 

Known fire risks

“For at least a decade, the known fire risks associated with lithium-ion batteries has resulted in countless Americans suffering from burns and disfigurements,” Pallone wrote. “It is a welcome start that CPSC has directed staff to address battery hazards, and that FDA has conducted a public workshop to explore the dangers of e-cigarette batteries. But work at both of your agencies has only just begun to address known battery safety problems that have harmed consumers. The federal government – through CPSC, FDA, and other agencies – must take even more decisive action with regard to the batteries themselves.”

Specifically, Pallone asked:

  • What are CPSC and FDA doing to collect data on the number of incidences of dangerous battery safety failures, such as fires or explosions?
  • What research has staff at CPSC and FDA done to inform policy actions, such as a consumer product safety rule or other safety standards?
  • What are CPSC and FDA doing to coordinate with each other and with other federal agencies?
  • Do CPSC and FDA have adequate resources to address battery safety problems in consumer devices?

Pallone is the ranking member of the House Energy and Commerce Committee. His letter went to CPSC Acting Chairman Ann Marie Buerkle and FDA Commissioner Dr. Scott Gottlieb.

A New Jersey Congressman would like to energize the federal agencies he thinks should be doing more about the problem of fires and explosions caused by lit...

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Xfinity Mobile goes live, offering nationwide wireless service

Comcast has been edging into the wireless communications business for quite awhile and now its Xfinity Mobile network is doing a quiet roll-out. The service resells Verizon's 4G LTE network and what Comcast says are 16 million wi-fi hotspots to reach just about every corner of the country.

The wi-fi hotspots are in commercial locations and also in customers' homes. Comcast routers have a separate channel that provides coverage to nearby Xfinity customers. The goal is to use wi-fi as much as possible to avoid burning up the more expensive Verizon bits.

Xfinity customers can sign up for the service at the new Xfinity Mobile website. It's available in all markets where Comcast already provides cable service. Sign-ups are restricted to Comcast’s 25 million subscribers.

Unlimited data, talk, text

Xfinity Mobile features an unlimited data, talk, and text plan starting at $65 a month for up to five lines ($45 per line for customers with Comcast’s top X1 TV packages), or $12 per GB a month a la carte. The unlimited option has been reduced to $45 a month through July 31 for the network’s first customers.

If it works as planned, Xfinity Mobile will put Comcast into direct competition with incumbents like AT&T and T-Mobile, as well as with wi-fi-based networks like Google Fi.

Which cell phone service is right for you? Check the ConsumerAffairs Cell Phone Buyers Guide. 

Comcast has been edging into the wireless communications business for quite awhile and now its Xfinity Mobile network is doing a quiet roll-out. The servic...

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How to protect yourself from spam text messages

Consumers are often blasted by spam text messages that are either seeking to sell them something or, even worse, steal their personal information. But in a recent report, the Federal Trade Commission (FTC) is reminding everyone that they don’t have to take these messages lying down.

The agency points out that spam text messages are often illegal and that consumers need to be careful about how they handle them and what information they reveal.

“Text message spam is a triple threat: it often uses the promise of free gifts or product offers to get you to reveal personal information; it can lead to unwanted charges on your cell phone bill; and it can slow cell phone performance,” the agency said.

Protecting yourself from text message spam

The FTC notes that unsolicited commercial email messages or text messages to wireless devices are illegal under the Telephone Consumer Protection Act (TCPA). There are a few exceptions – such as if the sender has a relationship to the recipient or if they come from political or fundraising organizations – but for the most part consumers need to give their consent before they can legally receive messages.

However, as many of us are aware, that doesn’t stop companies or individuals from sending them. To protect yourself from text message spam, the FTC offers the following tips:

  • Delete text messages that ask you to confirm or provide personal information: Legitimate companies don’t ask for information like your account numbers or passwords by email or text.
  • Don’t reply, and don’t click on links provided in the message: Links can install malware on your computer or device and can take you to spoof sites that look real but whose purpose is to steal your information.
  • Treat your personal information like cash: Your Social Security number, credit card numbers, and bank and utility account numbers can be used to steal your money or open new accounts in your name. Don’t give them out in response to a text.

You can also: 

  • Put your cell phone number on the National Do Not Call Registry.
  • Report spam texts to your carrier by copying the original message and forwarding it to the number 7726 (SPAM), free of charge.
  • Reviewing your cell phone bill for unauthorized charges, and reporting them to your carrier.

The FTC also asks that consumers who receive unwanted commercial or regular text messages file a complaint with the agency here or here.

Consumers are often blasted by spam text messages that are either seeking to sell them something or, even worse, steal their personal information. But in a...

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Net neutrality fight turns nasty

The fight over net neutrality is turning nasty. Although it's a topic that doesn't stir much interest in your average consumer, those who have opinions hold them very strongly.

Take Craig Sillman. He's a Verizon vice president in charge of what is called "public policy" (i.e., lobbying), and he is not happy with groups that describe themselves as "public policy" advocates, like Free Press and Fight for the Future.

Sillman says a lot of these groups are just out to raise money from their supporters and will say whatever it takes to make their point.  

"You gotta understand, there are a lot of advocacy groups out there that fundraise on this issue," said Sillman. "So how do you fundraise? You stir people up with outrageous claims. Unfortunately, we live in a time where people have discovered that it doesn't matter what's true, you just say things to rile up the base."

So is this a gotcha' incident? Something Sillman said behind closed doors? No, oddly enough it's part of a video released by Verizon recently. It's what you might call a "fake news" video in which an apparent Verizon employee identified only as "Jeremy" questions Sillman as though he were a reporter.

But despite Sillman's rather self-serving claim, non-profit advocacy groups aren't the only ones expressing concern about the Federal Communications Commission (FCC) chairman's plan to deep-six net neutrality rules -- and not everyone is driven by financial motives.

"Open and equal access"

“The internet must remain open and accessible to everyone,” said Illinois Attorney General Lisa Madigan in a recent statement. “Open and equal access to the internet is crucial to information sharing and competition. The FCC’s proposal would allow internet service providers to pick winners and losers among content providers and their customers. I urge the FCC Commissioners to vote against this proposal.”

Sillman would perhaps say that Madigan is just saying what she thinks voters want to hear, but judging from the mail and the reader statistics that let websites like ours count how many people read a given story, net neutrality is not exactly a barn-burner topic.

It is true that conservative interests and Republicans tend to favor deregulating big telecom companies like Verizon, AT&T, and Comcast while liberals and Democrats generally want to treat them like utilities, regulating rates and requiring that all users get the level of service they're paying for.

In the case of net neutrality, the rules put in place by the Obama-era FCC require companies like Verizon to treat all traffic equally. Since Verizon owns AOL, Yahoo, and other content providers, critics say it might tend to favor its own traffic over competitors. This is the allegation that Sillman and new FCC Chairman Ajit Pai say is strictly theoretical and doesn't have to be dealt with until and if it actually becomes a problem.

Critics like Madigan disagree. "Existing net neutrality rules prohibit internet service providers like AT&T or Comcast from discriminating among customers and content providers. They also ensure that when consumers purchase internet access, they can reach the content of their choice without interference and that any website can reach customers without having to negotiate or pay for special access," she said.

What could actually happen if net neutrality rules are scrapped? Madigan lists these possibilities:

  • Consumers being unable or forced to pay to access certain websites;
  • Decreased competition as start-ups fight for access with larger, established companies; and
  • Telecommunications companies that also own media companies giving preferential treatment to media content they own, putting smaller content providers and their customers at a disadvantage.

"No evidence of systemic failure"

FCC chair Pai has argued that there was no need to implement the net neutrality rules in the first place. 

"There was no evidence of systemic failure in the Internet marketplace. As I said at the time, 'One could read the entire document . . . without finding anything more than hypothesized harms.' Or, in other words, public-utility regulation was a solution that wouldn’t work for a problem that didn’t exist," he said in a speech late last year. 

The FCC is expected to vote at its May 18 meeting to eliminate the new rules. Free Press, one of the groups that drew Sillman's wrath, has been trying to raise $100,000 to fight the repeal.

"It's official. Trump and Pai plan to destroy net neutrality," says the FreePress.net site, insisting it's not too late. "Chairman Pai could still back down if he wants to leave the dark side."

The fight over net neutrality is turning nasty. Although it's a topic that doesn't stir much interest in your average consumer, those who have opinions hol...

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Verizon Wireless shows net loss of customers -- first time ever

Verizon has set a new record, although it's not one they were aiming for. The company posted its first-ever net loss of wireless subscribers during the first quarter of 2017.

Most Wall Streeters are blaming the loss on the price war that has broken out in the once-peaceful oligopoly that is the wireless business in the U.S. But others, including hordes of former Verizon subscribers, blame poor service and an inability to reach anyone who can help with problems.

"After lowering my data plan because of paying for data I wasn't using month after month Verizon took away free data I was given for LIFE with my new phone purchases," said Barbara of Kuna, Idaho, in a ConsumerAffairs review a few days ago.

"After calling them to find out why, I was told the free data was given to me for my data size not the phone purchases. I've been with Verizon for over 10 years and have been disappointed by them before. This is the last straw. Just another way Verizon stabs you in the back while pretending to be giving you something for being a valued customer," Barbara said.

Dawn of Birmingham, Alabama, says Verizon "has become impossible to deal with." She said she called Verizon when her new iPhone began shutting down, overheating, and otherwise misbehaving.

"They had me talk to three different people asking the same exact questions before finally agreeing to issue me a replacement phone which was still under warranty. This took over 45 minutes," Dawn said.

"Then I happen to be on my account checking my bill and the order for the replacement phone was on credit hold for some reason...not sure why because my account is current," she said. "Jumped on chat and this person tells me I now have to call the order department to confirm the order before it's shipped out. Why should I have to do this - wasn't the 45 minutes on with customer service enough of a confirmation to ship the stupid phone?"

$20 a month for nothing

Consumers rate Verizon Wireless
Another consumer, who asked that we not use his name, said that about five years ago, he bought a $1,500 Google Chromebook Pixel that supposedly included a free data plan from Verizon. Unable to connect, he called Verizon and agreed to pay $20 a month for data. He said he has not had the Chromebook for the last four years but has never been able to cancel the data plan despite numerous attempts and long waits on hold. 

"It's only $20 but it was so annoying that I took my four smartphones to AT&T. The network is OK and the website is easy to navigate, unlike the Verizon site which is like a carnival funhouse," he said. 

It's not only longtime customers who are miffed. Kayla of Spring, Texas, has only been with Verizon a month but is already irate. 

"I have been with Verizon for about a month and the customer service is horrible. I spent an hour on the phone with someone who still cannot tell me what my bill is actually going to be. Also, found it odd that I would want to file a complaint and asked why? I have been nearly paying $400 a month for 3 phones. That is why," Kayla said.

Unlimited data

Verizon has been trying to stop the hemorraghing. It brought back unlimited data plans in February for the first time since 2011. That helped a little but took a big bite out of earnings, illustrating the difficulty of turning around a mature business that has run out of room to grow. Verizon executives, however, insist things are going well.

“Our first-quarter results again demonstrated that customers value a high-quality network experience,” said Chairman and CEO Lowell McAdam in a press release. “To build on our loyal customer base and the third-party recognition we have received for network leadership, we extended our wireless and fiber network capabilities, began offering an unlimited pricing option and expanded our opportunities in new markets. We’re executing on strategies to capture future growth and create long-term shareholder value.”

The primary problem Verizon faces is that just about everybody who could want a smartphone already has one, so it's not a growing market. Meanwhile, T-Mobile and Sprint are nipping at its heels, takiing customers away with more nimble marketing plans.

Verizon has been trying to diversify into entertainment and information through its purchase of AOL and Yahoo, but any returns from those businesses are likely to be far down the road, many analysts feel.

Check the ConsumerAffairs Cell Phone Buyers Guide to find the phone and service plan that are right for you. 

Verizon has set a new record, although it's not one they were aiming for. The company posted its first-ever net loss of wireless subscribers during the fir...

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Verizon Wear24 challenges iWatch and doesn't need a smartphone

A watch used to be considered pretty smart if it kept fairly accurate time. Now it has to be smart enough to connect with your iPhone or other smartphone so it can display messages, email, and so forth.

Or does it?

The latest entrant in the smartwatch derby is the Wear24 from Verizon, and unlike its competitors, it doesn't need a smartphone to function.

Verizon says the watch operates automatically using your existing phone number for sending texts and making calls. It contains a SIM card similar to those used in smartphones, except that the card is embedded, meaning it can't be removed. Verizon can address the card directly and turn your service on or off and make other adjustments. 

Of course, Wear24 does more than just tell time, which is no longer considered very smart. According to Verizon, it will also: 

  • Stream all the music you want, phone-less, from Wear24 to a pair of Bluetooth headphones. Perfect for outdoor fitness activities and leaving your smartphone behind. 
  • Ask Google as many questions as you want. Ask Wear24 to "set a timer," "play rock music," and more. 
  • Browse and download Google Play apps directly on the watch without having to install them onto your phone.

Verizon says the smartwatch will be available in stores and online from Verizon starting May 11 for $349.99. Customers also have the option of purchasing the smartwatch for $299.99 with new 2-year activation. You can add the smartwatch to an existing Verizon Plan for $5 monthly access, plus taxes & fees.

“This is a promising step forward in securing IoT for the masses,” Mark Bartolomeo, vice president of IoT at Verizon, said. “The GSMA’s adoption of security certification through Verizon’s Security Credentialing Service will ensure standards for operators and manufacturers across the board, creating a more secure and consistent approach to IoT security moving forward.”

Similar 4G-connected smartwatches are set to hit the market soon, including LG’s Watch Sport on AT&T’s network.

A watch used to be considered pretty smart if it kept fairly accurate time. Now it has to be smart enough to connect with your iPhone or other smartphone s...

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Comcast launches its long-promised wireless service

Comcast has finally rolled out the wireless service it's been working on for the last few years. Called Xfinity Mobile, it will be available to existing Comcast customers and newcomers who agree to bundle wireless and Comcast home internet service.

Pricing is competitive, ranging from $45 to $65 per line per month, depending on how many other Comcast services are bundled. The $65 figure is $15 less than Verizon's charge for a single unlimited line and $25 less than AT&T's.

Comcast is also offering a pay-per-gig option of $12 per gigabyte for customers who don't use much data. That's much cheaper than any options from major carriers.

Comcast is hoping the attractive pricing for its wireless services will help reduce cable-cutting -- the dread practice of consumers getting rid of their cable service and relying on over-the-air and streaming video.

The other major carriers are also offering bundling in the markets where they are able to do so, but none has cut wireless prices quite as much as Comcast.

Wi-fi plus 4G LTE

Xfinity Mobile is using a combination of 4G LTE service that it is reselling from other carriers as well as its own 16 million wi-fi hotspots, located in commercial venues and subscribers' homes. Comcast has been quietly installing wireless routers that contain a public channel as well as a private one for use only by the subscriber.

"We’re doing mobile differently by bringing our customers the best networks and a product designed to save them money in an increasingly data-driven world," said Greg Butz, president of Comcast Mobile. 

Comcast has finally rolled out the wireless service it's been working on for the last few years. Called Xfinity Mobile, it will be available to existing Co...

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Consumers with connected devices are happiest with their smartphones

We hear a lot of complaints about cell phones -- smartphones in particular. But one group of people who don't seem to complain as much are those who use their devices to operate other connected devices.

That was an unusual detail that turned up in J.D. Power's latest Full-Service Smartphone Satisfaction Study.

The researchers found overall satisfaction with smartphones, no matter what kind, was 49 points higher among customers who also used voice-activated home assistants such as Amazon Echo. If a customer had a smart thermostat or smart appliance, satisfaction was even higher.

"Customers with connected home devices are able to improve the comfort, convenience and security of their living spaces with their smartphone devices," said Kirk Parsons, senior director and technology, media & telecom practice leader at J.D. Power. "They are more satisfied with their smartphones because they can take advantage of smartphone functionalities that other customers may not be aware of."

Connectivity makes a difference

Parsons says consumers seem to prefer products that connect with other devices, and manufacturers who provide that feature, he says, will have an advantage.

But even though a smartphone might have the capability, it's only customers who take advantage of it who seem to have the higher level of satisfaction. And the more you use it, the more satisfied you tend to be.

The study found that no matter the brand, customers expressed greater satisfaction. In the past year, Motorola had the biggest increase in overall satisfaction, rising by 15 points. HTC was 12 points higher, with Apple rising by six points.

Among carriers, AT&T logged the biggest increase in overall smartphone satisfaction, followed by Sprint, Verizon Wireless, U.S. Cellular, and T-Mobile.

Apple topped the list in overall satisfaction in the full-service carrier segment, followed closely by Samsung. Apple was also number one in overall performance and features.

We hear a lot of complaints about cell phones -- smartphones in particular. But one group of people who don't seem to complain as much are those who use th...

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Standard Innovation settles class action over alleged vibrator data collection

Standard Innovation, an Ottawa-based company, has agreed to pay a $3.75 million settlement over allegations that its We-Vibe vibrators secretly track and record user information, according to Courthouse News.

We-Vibe vibrator models have been sold since 2014 and feature the ability to connect and be controlled by users’ smartphones through the We-Connect app. However, lead plaintiff N.P. accuses the device of recording information on how it’s used in real time and transmitting it to servers in Canada.

“While the We-Vibe device gives a unique way to intimately communicate and interact, Plaintiffs allege that Standard Innovation also programmed – without its customers’ knowledge or consent – the We-Connect application to collect a substantial amount of information about its customers’ usage habits,” the suit states.

Collecting “intimate details”

N.P. claims she bought the $130 We-Vibe model without knowing that it recorded her most “intimate details. . . including the date and time of each use, the vibration intensity level selected by the user, the vibration mode or pattern selected by the user, and incredibly, the email address of We-Vibe customers.”

Preliminary approval of the class settlement was granted on Monday by U.S. District Judge Virginia Kendall. It solidifies an agreement that Standard Innovation will pay $3.75 million to a settlement fund that will provide restitution to the approximately 300,000 consumers who bought the product and the 100,000 who used the linked app.

Those who used the linked app will receive approximately $500, while those who simply purchased the product will be paid around $40. The agreement has not yet stipulated how much of the settlement fund will be paid to the class counsel.

While Standard Innovation has not admitted to any wrongdoing, it has agreed to destroy any data that it collected through the product and will revise its privacy policy.

What to do

Editor's note:  This story is about a class-action lawsuit. If you are among the class of consumers described in the suit, you may eventually be eligible to participate in whatever compensation the court awards, if any. Unlike what many people think, you do not "join" a class action -- you are either in the class covered by the action or you are not. 

Often, consumers included in an award do not need to take any action, as the defendant is required to contact them directly. In other cases, the court and the attorneys who brought the case will issue instructions when the case is settled.

Please note that under our Privacy Policy, we cannot provide you with the names of other consumers who may be similarly affected. 

Please see our Class Action Guide for more information. 

Standard Innovation, an Ottawa-based company, has agreed to pay a $3.75 million settlement over allegations that its We-Vibe vibrators secretly track and r...

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Radio Shack once again sinks into bankruptcy

Brick-and-mortar retail really is in trouble. Latest casualty: RadioShack, or more precisely its successor, General Wireless. It was formed to take over the RadioShack name and some of its assets after the original RadioShack filed for bankruptcy in 2015.

Now General Wireless, which was formed by Sprint Corp. and the former owners of the original RadioShack, has thrown in the towel and filed for bankruptcy. The business operated Sprint stores within RadioShack locations but just couldn't generate the foot traffic needed to keep the lights on.

The problem comes down to convenience. If you can order an HDMI cable from Amazon Prime and have it delivered to your door tomorrow (or even later today in much of the country), why would you get in your car, drive to an obscure strip mall, and pay a premium for the item, then drive back home in afternoon traffic?

Chances are you wouldn't, and therein lies the problem for brick-and-mortar stores. 

Inventory burden

Besides the problem of attracting custoners, there's the whole question of inventory, something not often considered by consumers, who understandably have no reason to care about it.

But take that most pedestrian of RadioShack items -- speaker wire. If you're moving your home theater speakers around, you may find yourself needing more wire. The neighborhood RadioShack store probably has a few 100-foot spools of wire, but it may well sell only two or three per month, meaning it has to finance the cost of a carton of spools over a year or two. 

The nearest Amazon warehouse, by contrast, has a lot more wire but it most likely ships it out as fast as it can restock it, cutting its inventory financing cost drastically.

This is known as turnover -- the amount of time an item sits moldering on a shelf running up finance charges. The supermarket business is very low-margin but it has high turnover -- you need milk and bread every few days. Speaker wire? Not so much.

So what it means for consumers is that there'll be more strip mall spaces opening up for yoga and nail salons. Oh, and also plan ahead next time you rearrange your home theater system since you'll need to order your speaker wire a day in advance.

Brick-and-mortar retail really is in trouble. Latest casualty: RadioShack, or more precisely its successor, General Wireless. It was formed to take over th...

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New app lets you know when your internal battery needs charging

Your smartphone is already equipped with the ability to let you know how much battery life it has left. Now, a new app called WakeMode can give it the ability to let you know how much battery you have left.

WakeMode, launching today, can evaluate your fatigue levels based on the quality and amount of sleep you got the night before. Beyond helping users keeping tabs on their “internal battery level,” WakeMode provides tips on how to boost your energy throughout the day and get better sleep at night.

Its sleep evaluation technology was developed by SleepRate, a medical tech sleep solution company. The company claims its sleep monitoring technology has an edge over other sleep trackers because it uses machine learning to create individualized sleep improvement plans.

Fatigue analysis

The app initially uses motion and heart rate to get a feel for your sleep patterns, then it gets to work creating a personalized sleep improvement program. Keeping the app in the loop regarding your sleeping habits and activities, such as when you napped or how much alcohol you drank, boosts the accuracy of its fatigue analysis.

Armed with an accurate sleep analysis and actionable fatigue-fighting tips, users can combat any obstacles standing in their way of getting a good night’s sleep.

“With SleepRate, we gave our users the opportunity to learn about and improve their sleep patterns, but we also wanted to give them a way to be more engaged and understand how better sleep could affect their lives,” said SleepRate CEO and founder, Dr. Anda Baharav.

“WakeMode enables users everywhere to actually see how their sleep habits affect their day and encourages them to commit to an actual lifestyle change in order to improve their sleep habits and alertness during the day.”

Energy updates

The app, which evaluates your fatigue levels on a number scale, aims to keep users perky throughout the day by pinpointing opportunities for fatigue regulation.

Certain times may call for a caffeinated beverage while others may require a nap. To combat a very low internal battery, the app may suggest heading to bed to replenish your battery. Customizable notifications indicate critical fatigue levels and optimal bedtimes.

WakeMode (available for Android or iOS) is also equipped with social sharing, so users can receive motivation from their friends and family.

Your smartphone is already equipped with the ability to let you know how much battery life it has left. Now, a new app called WakeMode can give it the abil...

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Nokia goes back to the future with new cell phone

What's the latest mobile device that's got everyone's attention? It doesn't have a lightning fast microprocessor or HD screen.

But it makes phone calls and sends text messages, along with a handful of other things a smartphone might do.

Nokia has introduced a new phone that's old. CNET, which is covering the Mobile World Congress, says the Nokia 3310 is causing quite a stir in the tech world. It's a remake of the classic "candy bar" phone that Nokia launched around 2000, when the iPhone was just a glimmer in Steve Jobs' eye.

'Modern classic reimagined'

On its website, Nokia calls the 3310 "a modern classic reimagined." At first glance, the lines of the phone are familiar, with a smooth, iconic silhouette. It has a larger screen than the original, but it only takes up about half the phone.

"The custom designed user interface brings a fresh look to a classic, whilst the 2.4” polarized and curved screen window makes for better readability in sunlight," the company said.

Nokia's short video clip (below) demonstrating the phone has gone viral, with nearly 1.8 million views on YouTube at last count.

Month-long battery charge

While your smartphone battery may have to be recharged daily after running countless apps, Nokia says the battery charge on the 3310 should be good for an entire month.

When Steve Jobs introduced the iPhone in 2007, he envisioned the device as a replacement for the PC, designing it to be used like a computer. According to Jobs, a keyboard or keypad should not be taking up half the device since it is rarely needed.

The Nokia 3310 is several steps back from that, going back to the future, when life was simpler and so were phones. But nostalgia may not be the only reason this throwback phone has attracted attention.

Attractive price

While the latest smartphones with all the bells and whistles can cost north of $700, the Nokia 3310 sells for 49 euro, translating into a little less than $52. And there are a couple of upgrades -- Gameloft has updated the original Snake game.

Nokia obviously believes it has a winner on its hands. It originally aimed the phone at developing countries, where many consumers still use old-school cell phones.

But it might also find a market in the U.S., especially among consumers who feel they don't have to be immediately responsive to the latest email from the office. If it's really important, they'll call, won't they?

What's the latest mobile device that's got everyone's attention? It doesn't have a lightning fast microprocessor or HD screen.But it makes phone calls...

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New app lets birdwatchers record and identify bird songs

With a hand from technology, beginning birdwatchers may become seasoned pros in no time. Earlier this year, Subaru added a birdwatching app called eBird to its infotainment system. Now, binocular-wielding birders can use their smartphone as a bird song identification tool.

Song Sleuth, a new app for iPhone users, aims to embellish a birdwatcher’s ornithological knowledge by offering up information on nearly 200 North American birds.

Birders can use their smartphone to record, recognize, and identify the songs of nearby feathered creatures with the help of the app’s algorithm-based identification software. Song Sleuth says its software is similar in concept to what is used in speech recognition software, but specifically tailored to the unique acoustical characteristics of bird songs.

Bird song familiarization

Pushing past novice birdwatcher status will require a knowledge of bird species as well as bird songs, and Song Sleuth aims to help familiarize users with both. In addition to helping birdwatchers identify bird songs, the app includes a bird reference guide.

"Song Sleuth is one of many tools that can help identify a bird, but its true benefit is helping people become better birders by familiarizing them with known birdsongs in a logical, familiar way," said bird expert and illustrator David Sibley, who lent his expertise to the development of the app.

The way the app works is simple. To identify a nearby bird’s song, push the record button in “Record and ID” mode. When you are done recording, click the button again. From there, you will see the three most probable birds in the “Likely Matches” screen.

Making the final identification

To whittle down the list of matches, users can play example recordings of the likely matches, use the reference guide, or compare spectrograms of the example recordings with the recording created.

Once the bird’s song has been matched to its species, you will have the option of geotagging the recording with the correct species, adding a note, or downloading the audio file to share with friends.

Song Sleuth is currently available on the App Store, with an Android version expected to become available this fall.

With a hand from technology, beginning birdwatchers may become seasoned pros in no time. Earlier this year, Subaru added a birdwatching app called eBird to...

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Want unlimited data? These are now your choices

Verizon Wireless joined the club this week, announcing that it, too, would offer an unlimited data plan -- something that the market had begun to dictate.

Consumers now use their smartphones as computers, and they are accustomed to having unlimited internet use on their PCs at home. They demanded the same from their wireless devices and carriers had begun to give it to them.

Now, all of the wireless companies offer an unlimited data plan in some form. However, no one provides unlimited data, at the fastest speeds, period. Network capacity, after all, is a finite resource. So there are certain limitations.

Here are what your choices now look like:

Verizon Wireless

The new Verizon Unlimited plan, introduced on Monday, costs $80 for unlimited data, talk and text on one smartphone line if you also sign up for paper-free billing and AutoPay. Four lines cost $45 per line, also with unlimited data, talk, and text on smartphones and tablets, again with the requirement of paper-free billing AutoPay.

Here's the caveat: after 22 GB of data usage on a line during any billing cycle Verizon may "prioritize usage" behind other customers in the event of network congestion. This is similar to other carriers' restrictions.

T-Mobile

T-Mobile is the disrupter that got all of this started. Its All Unlimited Plan offers unlimited text, talk, and data for $70 for one line and $40 a line for four lines, when using AutoPay.

It makes a point of saying the $160 for four lines also includes taxes and fees, something the other carriers don't do. T-Mobile's caveat is that when the network is congested, the top 3% of users, which translates into about 28 GB a month, may notice slower speeds.

AT&T

AT&T's unlimited data plan is available to customers who also have DIRECTV or U-verse. If you have one of those services, you get unlimited data on all eligible devices covered by your plan.

You also get unlimited talk and text including calls to Mexico and Canada, and talk, text, and data in those countries when you add AT&T Roam North America.

The cost is $100 for the first line and $40 for additional lines.

Straight Talk and Cricket

Straight Talk Wireless and Cricket Wireless are prepaid services that gained traction in the marketplace as phone service you could use without being bound by a contract. As an indication of how fast things have changed in this space, that is no longer a distinction. Instead, both now try to compete on price.

Straight Talk, sold through Walmart, provides unlimited data, but only a certain amount is at full high-speed. For example, the Unlimited Nationwide Plan costs $55, but speeds slow to 2GB after you go through the first 10 GB in a billing cycle. It's $45 when the high-speed allowance is just 5 GB.

Cricket costs $70 -- $65 when you enroll in AutoPay. Currently, mobile hotspot is not available on Cricket, but the company says it does not reduce users' speed, regardless of the amount of data they use. However, it says speeds may vary, depending on location and device.

Verizon Wireless joined the club this week, announcing that it, too, would offer an unlimited data plan -- something that the market had begun to dictate....

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Smartphone app could shorten length of hospital stays after C-section

Researchers say a new smartphone app could help C-section patients reduce the length of their hospital stay after delivery.

The results of a new study showed that the app helped to reduce the length of a hospital stay after a cesarean section from the average of 3.7 days to 2.7 days. These findings were presented at the American Society of Anesthesiologists (ASA) Practice Management Meeting.

Although it’s too soon to tell if patients who used the app had any adverse outcomes, such as surgical site infections or urinary tract infections, study author Dr. Attila Kett says early results are promising.

Lowered cost

Four weeks prior to their scheduled C-sections, women downloaded the app on their smartphones. The app notified them of upcoming appointments, provided pre-surgery information, and facilitated remote post-surgery health checks such as pain control and wound recovery.

The app appeared to be an effective means of improving the quality of care while lowering costs from hospital stays. The first 30 women to use the app left the hospital an average of one day sooner after delivering via C-section.

While insurance companies are required by law to pay for 96 hours of hospitalization after C-section, Dr. Kett says it’s safe and preferable to leave the hospital sooner if the mother and baby are healthy.

“The app empowers women by putting them in control of their health care needs,” said Dr. Kett, division chief of obstetric anesthesia at Saint Peter’s University Hospital in New Jersey.

Return on investment

The costs required to participate in the program (which employed a variety of methods to enhance and fast-track patient recovery) and to develop the app were outweighed by the savings that came as a result of shortened hospital stays after C-section, the researchers noted.

The return on investment was 216% in the first year and is estimated to be higher (282%) in years to come. The authors say the study highlights the value of Perioperative Surgical Home (PSH) care programs and physician-led care.

Researchers say a new smartphone app could help C-section patients reduce the length of their hospital stay after delivery. The results of a new study...

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Samsung says defective batteries caused Note 7 fires

Korean electronics giant Samsung says it has completed an investigation of the fires that forced it to withdraw its flagship Note 7 smartphone from the market, and it has pinned the blame on defective batteries.

At a news conference in Seoul, DJ Koh, head of Samsung's mobile communications business, said the company's investigation, backed up by various independent probes, found a short circuit within the battery may occur when there is damage to the separator "that allows the positive and negative electrodes to meet within the jellyroll."

The company was forced to recall the Samsung Galaxy Note 7 just weeks after its release when there were dozens of reports of the phones exploding or catching fire. In a couple of cases, the incidents occurred aboard commercial aircraft shortly before takeoff.

The company re-released the phones weeks later with a different battery configuration. But it wasn't long before there were reports of similar incidents, some of them dramatically captured on video and posted on YouTube. Samsung was then compelled to withdraw the newer Note 7's from the market.

Separate factors

In its report, Samsung said the investigation identified separate factors in both batteries that led to the defect -- factors that were unique to each battery.

Based on what it learned from the investigation, Samsung said it has implemented new internal quality and safety processes to ensure safety, including an "8-Point Battery Safety Check." It also announced formation of a Battery Advisory Group of external advisers to maintain "a clear and objective perspective on battery safety and innovation."

“For the last several months, together with independent industry expert organizations, we conducted thorough investigation to find cause to the Galaxy Note7 incidents.” Koh said, “Today, more than ever, we are committed to earning the trust of our customers through innovation that redefines what is possible in safety, and as a gateway to unlimited possibilities and incredible new experiences.”

Meanwhile, Samsung is said to be moving ahead with its plans for the Galaxy Note 8, the successor to the ill-fated Note 7. However, a release date for the next phone is far from certain.

Korean electronics giant Samsung says it has completed an investigation of the fires that forced it to withdraw its flagship Note 7 smartphone from the mar...

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Why you should think twice about texting business information

It's not just teenagers who spend their days texting. Sending short text messages over a mobile device has become the preferred way to communicate, even at work.

Texting is also being pushed on businesses, with the argument that it's the most effective way to communicate with customers and employees.

Maybe sending general marketing information to customers via text is something to consider, but TeleMessage, which provides secure messaging systems for businesses, warns that transmitting sensitive business information via text is inherently risky.

It even says using consumer chat apps like WhatsApp and iMessage for business purposes can be playing with fire. Yet, it cites surveys showing nearly all employees are using their smartphones to transmit work-related information.

TeleMessage says the most common threat is an employee losing his or her smartphone. When that happens, it says 68% of victims never recover their phones. The person who finds it then has access to the text messages sent and received on the device.

Phones can be hacked

Beyond lost or stolen phones, there's concern about hacks. TeleMessage says it only takes one text to hack 950 million android phones. It says one Android flaw produced six critical vulnerabilities on 95% of Android devices.

As employees are embracing consumer messaging apps, IT administrators are increasingly concerned about employees downloading the latest popular messaging app and using it to send and receive the company's latest sales figures and other information that shouldn't fall into the wrong hands.

Other reasons

The technology website ZDNet agrees that employees should avoid texting for business purposes, arguing email is always a preferred way to communicate.

But ZDNet doesn't cite security concerns as a reason for not using texts for work-related communication. It points out that texts tend to be viewed as more casual, and there is the risk an employee won't give information transmitted in a text the attention it deserves.

It points out email provides a more business-like platform and leaves a more robust paper trail in the event of litigation.

It's not just teenagers who spend their days texting. Sending short text messages over a mobile device has become the preferred way to communicate, even at...

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Apps to help parents get through the holidays

With the holidays just around the corner, there may be a few parties or family gatherings in your future. If you’re a parent, you’ll likely be facing many additional holiday-related stressors.

From baking for a holiday party at your child’s school to checking off a seemingly endless shopping list, parents have their work cut out for them around the holidays. Luckily, several apps are available to help moms and dads survive the holiday hustle and bustle.

While each app has its own forte, this selection may help take away some of the stress a parent often feels while navigating a busy holiday season with kids.

Apps for a worry-free holiday

Whether you’ve got food allergies to consider at Thanksgiving or gift ideas to keep track of ahead of the holidays, these apps may help keep you organized and calm.
  • AllerGuarder. Food is a primary focus at holiday gatherings, but food allergies are more common than you might think. One in 13 children in the U.S. is affected by food allergies. To make sure your feast doesn’t trigger an allergic reaction, have kids wear the AllerGuarder bracelet. It can communicate with an app on your smartphone to remind you not to feed a child at your gathering something they’re allergic to.
  • Picniic. Families have a lot to juggle around the holidays. The various parties and functions on each family member’s schedule can be difficult to coordinate, but Picniic can help parents stay organized. With Picniic, the whole family can see and update their schedule on one central home hub.
  • Presence. Will you be heading out of town over the holidays? If so, home security may be at the forefront of your mind as you pull out of the driveway. This app can turn your unused smartphone or tablet into an internet security camera with motion detection. While you’re away, you can sign into Presence on another mobile device to see real-time video and audio of your home. The app will even send you an alert when motion is detected.
  • Giftster. Holiday shopping can send stress levels flying. Keeping track of gift ideas while also sending out your own holiday wish list can cause mental clutter for all but the most Type A individuals. With Giftster, parents can stay on top of their gift-giving game. This app makes it easier to organize gift lists ahead of time, which can help reduce your overall stress. 

With the holidays just around the corner, there may be a few parties or family gatherings in your future. If you’re a parent, you’ll likely be facing many...

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Reali app lets home buyers skip the real estate agent

Technology has taken the reigns of many positions once held exclusively by humans. From self-checkout lanes to automated phone operators, tech-driven interactions are becoming commonplace.

But could an app really do the job of a real estate agent? Bay area real estate investors Amit Haller and Ami Avrahami, the founders of a new app named Reali, think so.
After a complicated experience in the real estate market, the two aspired to create a new way to buy and sell homes. Instead of relying on the help of a real estate agent, their app lets users handle each step of the home buying process themselves.

Works with your schedule

With Reali, prospective home buyers are left to their own devices -- literally. But Haller and Avrahami believe that’s a good thing. The app cuts out the middleman while still allowing buyers to tour homes and access on-call help.

To start, buyers submit their mortgage pre-approval paperwork on the app. After documents have been verified and approved by a Reali employee, users can get started sifting through available houses.

If a particular house piques your interest, you can schedule an “on-demand open house.” And rather than being met at the front door by a real estate agent, you’ll have the ability to unlock the door yourself.

Bluetooth beacons

The app enables users to remotely unlock the door and take a self-guided tour of the home. Bluetooth beacons placed throughout the house may be helpful in answering a buyer’s questions and highlighting important features of the home. 
These “info beacons,” combined with the ability to chat with a Reali expert through the app, should do the job of answering any questions. From there, users can decide whether to pass on the house or submit an offer through the app.
Reali lets buyers conduct the bidding on their own. It also alerts users of counteroffers and gives them the opportunity to respond immediately. "It's a broker in your pocket," Haller told Business Insider.

Flat fee

Reali charges a flat $2,950 administrative fee. At close of escrow, 2.5% of the selling price gets returned to the buyer as cash back. On a $1.7 million property, the company estimates that buyers would get back around $40,000.

The app is primarily geared toward those who can afford to pay that much for a home, but this may change in the future.
Reali is currently only available in select San Francisco Bay Area real estate markets, but the team says it's working on making it available in other cities and states within the next year.

Technology has taken the reigns of many positions once held exclusively by humans. From self-checkout lanes to automated phone operators, tech-driven inter...

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FAA bans fire-prone Samsung Galaxy Note7 smartphones

For weeks, airline crews have been warning passengers not to use or charge Samsung Galaxy Note7 smartphones. Now the Federal Aviation Administration (FAA) has taken it a step further, banning the devices from commercial airliners entirely.

“We recognize that banning these phones from airlines will inconvenience some passengers, but the safety of all those aboard an aircraft must take priority,” said Transportation Secretary Anthony Foxx. “We are taking this additional step because even one fire incident inflight poses a high risk of severe personal injury and puts many lives at risk.”

Samsung has recalled the phones, withdrawn them from sale, and stopped manufacturing them, but an unknown number are still in the hands of consumers and are still being used.

There have been documented instances of the phones becoming dangerously hot and even bursting into flames. A fire anywhere is dangerous, but it's a critical threat aboard airplanes.

“The fire hazard with the original Note7 and with the replacement Note7 is simply too great for anyone to risk it and not respond to this official recall,” said Elliot F. Kaye, chairman of the U.S Consumer Product Safety Commission. “I would like to remind consumers once again to take advantage of the remedies offered, including a full refund. It’s the right thing to do and the safest thing to do.”

Samsung and the CPSC issued recalls for the devices on September 15, 2016 and again on October 13, 2016. On October 11, 2016, Samsung suspended the manufacture and sale of the Note7.

What to do

The FAA issued these bits of advice for travelers:

  • If passengers attempt to travel by air with their Samsung Galaxy Note7 devices, they will be denied boarding. 
  • Passengers who attempt to evade the ban by packing their phone in checked luggage are increasing the risk of a catastrophic incident.  Anyone violating the ban may be subject to criminal prosecution in addition to fines.
  • Passengers currently traveling with Samsung Galaxy Note7 phones should contact Samsung or their wireless carrier immediately to obtain information about how to return their phones and arrange for a refund or a replacement phone. 
  • If an airline representative observes that a passenger is in possession of a Samsung Note7 device prior to boarding an aircraft, the air carrier must deny boarding to the passenger unless and until the passenger divests themselves and their carry-on and checked baggage of the Samsung Galaxy Note7 device. Passengers absolutely should not pack the phones in their checked luggage.
  •  If a flight crew member identifies that a passenger is in possession of a Samsung Galaxy Note7 device while the aircraft is in flight, the crew member must instruct the passenger to power off the device, not use or charge the device while aboard the aircraft, protect the device from accidental activation, including disabling any features that may turn on the device, such as alarm clocks, and keep the device on their person and not in the overhead compartment, seat back pocket, nor in any carry-on baggage, for the duration of the flight.
  • The Samsung Galaxy Note7 device is now considered a forbidden hazardous material under the Federal Hazardous Material Regulations (HMR; 49 CFR Parts 171-185), which forbid airline passengers or crew from traveling with lithium cells or batteries or portable electronic devices that are likely to generate a dangerous evolution of heat.

For weeks, airline crews have been warning passengers not to use or charge Samsung Galaxy Note7 smartphones. Now the Federal Aviation Administration (FAA)...

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Samsung reeling in aftermath of fires in Galaxy Note 7 phones and other products

Samsung is feeling the heat from its disastrous handling of the fire-prone Galaxy Note 7 smartphones. Critics are comparing the bungled response to the Note 7 crisis to Samsung's handling of a rash of washing machine fires in Australia a few years ago.

Samsung recalled 150,000 Australian washing machines in April 2013 after a series of house fires were blamed on the machines. But first it tried to get consumers to use tape and a plastic bag to solve the problem, a solution that only increased consumer outrage and was itself blamed for several more fires.

Consumers in the U.S. have also reported fires in their Samsung washers, as we reported a few weeks ago, but so far no recall has been issued. Federal safety officials, however, warned consumers that the machines could shake themselves to pieces and cause injuries or damage.

Repercussions from the Note7 debacle are rippling through all corners of Samsung's business. A report today says that an expected deal with FCA (formerly Chrysler) has been delayed while Samsung, South Korea's largest company, tries to work its way through the aftermath of the smartphone recall and subsequent market withdrawal.

FCA and Samsung had been reported to be close to a deal involving electronic components for the company's Chrysler, Jeep, Fiat, and other auto brands.

The fallout from the Galaxy fires threatens to tarnish Samsung's other consumer products, which have experienced their own problems with unexpected fires and, more significantly, with a response that is best described as business as usual.

We heard from Lyn of Palm Harbor, Fla., about the red-hot charger that came with her Samsung tablet.

"Charger got so hot we had to use gloves to remove it from the wall. Went to the AT&T store ... where we purchased it, they told us we would have to contact AT&T corporate to get a replacement. Called corporate and we were told to contact the manufacturer," Lyn said. "We did and were informed that they would not replace charger. The warranty only covered the device. If you can't charge it you can"t use the device!!! Stay away from Samsung products. No Samsung, No FIRES."

Microwaves

Samsung microwaves have for years generated red-hot consumer complaints about fires, most recently from Bill of Palm Harbor, Fla.

"Bought new Samsung microwave (me21h706mqs) and after one week it caught on fire at the plastic piece in rear corner. Lucky we were at microwave watching or whole house could have caught on fire. Huge plastic smoke and horrible smell," Bill said in a ConsumerAffairs review a few days ago. Bill called Samsung and after calling three different numbers got little satisfaction.

"Samsung was not impressed their unit caught fire and really did not care. Said they would send tech in 2-3 days. ... Basically they hung up on me after I requested someone come out on Monday to remove."

Tracy of Winston-Salem, N.C., said she was boiling pasta when her microwave caught fire.

"I wasn't even using the inside of the microwave at the time. I was using the exhaust fan for I was boiling pasta on the stovetop. Flames all in the microwave, I had to use the fire extinguisher. I am so glad I was home when this happened! My model number ME18H704SFS."

By-the-book

A common theme in many of the microwave fire complaints submitted by ConsumerAffairs readers is the by-the-book response from Samsung's customer service representatives.

"Purchased Samsung Microwave Model Number ME18H704SFG on 07-03-2016 from HHgregg. They delivered the Microwave on Saturday 07-09-2016. Used the Microwave Saturday and Sunday. Monday morning 07-11-2016 my wife screamed 'FIRE' so I ran to the Kitchen where the Microwave door was open and a flame about 4-5 inches long was jetting out ... I got the Fire Extinguisher and put it out then unplugged it," said Joey of Sicklerville, N.J.

Joey said he called Samsung and "spoke to a lady there who gave me a transaction number and said a product specialist would call me back within 4 hours." The return call didn't happen, Joey said, but eventually a service call was scheduled for several days later. Like other owners of burned microwaves, Joey said he didn't want service, he wanted a new microwave.

 "I told her I did not want them to attempt to repair this unit and give it back to me. She said the service person would not take the unit but would take photos and send to Samsung where they would determine if it could be repaired. I told her I would not let that unit back into my home. She said if you refuse the service then you will be left with a broken microwave," Joey said.

Ovens & ranges

You expect a range to get hot but, ideally, the heat is confined to the oven and cooking surfaces. That's not always the case with Samsung ovens and ranges, consumers say.

"Our two year old Samsung NE58F9500SS began sending strong fumes of burning plastic upon oven preheat," said Nancy of Midlothian, Va. "Repeated email and phone contact with customer service about this fire hazard was a test of patience. Each contact told us to wait 24 more hours and we would be contacted by someone. Days passed. No oven. No stove. Wires attached to the back of the oven, melted. Plastic on the terminal block melted. This is DANGEROUS and deserves immediate attention," Nancy said. "We paid $1,533.35 for this poor workmanship and poor service."

Remi of Piscataway, N.J., wasn't as lucky as Nancy.

"I opened the broiler to place a tray inside and flames shot out of it and singed face and hair. The fire department, EMT and PSEG responded to the incident. The oven was tagged 'defective' and the gas line was shut off," Remi said. "I have been in constant communication with Samsung regarding the oven. I inquired about being compensated for food due to the 'loss of use' and was told that they do not provide compensation."

"Last week, I was advised that they would swap out the oven. I advised them that before I would commit to this resolution, I was like to know the cause of the fire. I was informed that this information could not be released to me," Remi said. "As a consumer who purchased this item, was injured by it and could have received extensive damage to my house, I believe that I should be informed of the cause and/defect of the unit."

Dinner was interrupted at Sheila's home in Albany, Ga. "Yesterday in the middle of preparing dinner, the range shot fire with a loud explosion. Samsung does not stand behind their products and you would think that a new stove that we paid $900.00 for would last longer than 2 1/2 years," she said.

Refrigerators

We haven't seen many reports of Samsung refrigerators actually igniting, but many consumers have complained of conditions that they thought were fire hazards.

"After 4 years of owning a French door Samsung refrigerator (RF267AARS/XAA), the coils started freezing up. I called out a Samsung repair service and they discovered that the evaporator coils had melted my liner and it is not repairable. It was so badly burnt inside that I am surprised it did not catch fire," said Jerri of Dripping Springs, Texas.

"When I contacted Samsung customer service about this hazard, I was put on hold for 30 minutes and then told that they could only refund me a partial credit for the refrigerator. When I asked if there have been similar problems with other refrigerators, they could not tell me," Jerri said.

Donald of North Kingstown, R.I., found singed components in his freezer compartment.

"After removing the cover in the freezer that covers the coils I found a lot of burnt areas and cracks in the freezer compartment. Also the defrost sensor was also burnt," he said. "I replaced the sensor and also took pictures of the freezer compartment showing the burnt areas and areas where the compartment was bubbling up from heat. This frig is a fire hazard."

Not everyone is so lucky. 

"Caused damage throughout house," said a consumer in Australia who asked to remain anonymous. "Had temporary accommodation for a year. Everything lost. Fire brigade recognised incident as a fridge fire. Fortunately happened when house was empty overnight. Samsung deny all liability and claim a waste bin must have caught fire in front of the fridge!"

Dishwashers

Aurelia of Wentzville, Mo., didn't have a fire in her Samsung dishwasher but was afraid that she was about to. She said numerous repair visits failed to resolve a water leak. After the last repair, "we ran a load [and] after 40+ minutes we got the LC* warning light."

"This indicated water to electric leak, it's recommended to shut off circuit to the unit to prevent further damage or fire.," Aurelia said. After all the attempts to repair her dishwasher, she said she expects to be told she is out of warranty and on her own.

Samsung has denied the incidents are linked and has said its warranty and repair services are adequate to handle the problems. Whether that is sufficient to reassure consumers is the question the company must now face.

Fire mars the back of a consumer's Samsung microwave.Samsung is feeling the heat from its disastrous handling of the fire-prone Galaxy Note 7 smartph...

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Sprint announces initiative to provide low-income students with free wireless devices and service

The educational system has been greatly enhanced through technology in recent years. While smartboards, interactive maps, and a plethora of online tools have benefited students in the classroom, having access to something as basic as the internet outside of school also lends a huge advantage.

Unfortunately, not all students are able to go online outside of school. Children of families that can’t afford expensive smartphones or other internet-connected devices can often lag behind, which contributes to ever-widening educational and opportunity gaps. But a new announcement from Sprint may go a long way towards evening the playing field.

The company announced today that it will be giving away one million internet-connected devices and providing four years of internet access to low-income high school students across the U.S. It marks the largest corporate initiative to bridge the digital divide and close the “Homework Gap," according to the company.

“Education is the foundation for our society to prosper, and the internet is an incredibly powerful tool for learning. But it’s a huge problem in America that we have 5 million households with children that lack internet connections. Those kids have a huge disadvantage and we are failing them. All of us at Sprint are committed to changing this by providing 1 million students in need with free devices and free wireless connections,” said Sprint CEO Marcelo Claure.

Equal opportunity to succeed

Sprint’s new initiative, called the 1Million Project, may go a long way towards giving low-income children an equal opportunity to succeed. A report from the Pew Research Center found that students who come from low-income families are four times more likely than middle- and upper-income students to have no access to broadband internet. This is a big problem, since the report also found that 70% of teachers are assigning homework that requires some kind of web access.

Not having access to the internet also tends to lower parent engagement in their children’s education. Teachers often choose to correspond with parents via email these days, and online grading systems make it possible for parents with an internet access to keep tabs on how their child is doing in class. Not having those connections can result in parents who are simply out of the loop.

And when it comes time for a student to graduate, not having internet access could hamper future prospects. Applicants often have to apply for jobs online, and students wishing to learn more about scholarship opportunities and college applications will find the information on the internet.

Providing devices

In order to accomplish its goal, Sprint will be partnering with various non-profit agencies and manufacturers to provide free devices. Students may choose to receive a smartphone, laptop, tablet, or hotspot device, along with 3GB of high-speed LTE data per month.

For students who go over the 3GB limit, unlimited data at 2G speeds will be available. Students who choose a smartphone will be able to use it as a hotspot and can use the device for unlimited domestic calls and texts while on the Sprint network.

Funding for the initiative will come from donations from device manufacturers and through special events, donation drives, and other events hosted by Sprint and the Sprint Foundation. A pilot program is planned for launch in January of 2017.

The educational system has been greatly enhanced through technology in recent years. While smartboards, interactive maps, and a plethora of online tools ha...

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AT&T, Verizon lift data caps for some customers

Net neutrality is supposed to mean that all content on the Internet is treated equally by carriers, but wireless carriers are finding ways to push the envelope.

In the latest example, AT&T is lifting wireless data caps for customers who also subscribe to DirecTV or U-Verse, meaning those customers can watch life or recorded shows on their wireless device without burning up their monthly data ration. 

To take advantage of it, you'll need the latest DirecTV app, already available for iOS and coming soon for Android.

Verizon, meanwhile, has added NFL mobile service to its Go90 short video service on the "zero rating" list. Verizon Wireless customers can watch either without eating into their data cap. But be careful! If you gorge on ESPN or YouTube, it's a different story -- each digit will count against you.

You can thank T-Mobile for starting all this with its Binge On service, which offers zero data usage counts for a long list of video attractions.

It's basically a marketing ploy intended to encourage customers to load up on services from the same provider -- to get both wireless and satellite or cable TV from AT&T or Verizon. 

It's a sore point, though, for consumer activists, who say that while the zero rating deals may be technically legal, they violate the spirit of net neutrality. They're pushing the Federal Communications Commission to clamp down on the practice, but so far the FCC has apparently found nothing actionable about it.

Net neutrality is supposed to mean that all content on the Internet is treated equally by carriers, but wireless carriers are finding ways to push the enve...

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Apps that make harvesting social support easier for those with chronic health conditions

For those who suffer from a chronic physical or mental health condition, life can feel lonely. Social support may be hard to come by, as your daily struggles may not be completely understood by friends and loved ones.

But an app called ReachOut may help those dealing with issues such as cancer, diabetes, heart disease, PTSD, mental illness, or substance abuse find a circle of people who truly understand.

After creating an account, users choose what challenges they are facing. From there, users can browse through a collection of conversations from others who are facing similar challenges.

Social network of support

During times in which health issues seem unrelenting, a social network of people who are understanding and supportive is vital. That’s why ReachOut, as its name implies, lets users reach out to others to offer support.

Those in need of support can share their own story and hear stories from others who are walking the same road. If a thread or person is particularly helpful, users can save them to revisit later.

The ability to access support groups via an app may be beneficial to those who are unable to leave the house, as well as those who may not be quite ready for an in-person support group.

ReachOut can be downloaded for free on iTunes or GooglePlay.

Peer support group for anxiety

Stress, anxiety, and depression are common, especially among older adults. Online support groups can often play a big role in helping anxious or depressed people feel less isolated.

Pacifica is an app that combines cognitive behavioral therapy with relaxation and wellness techniques to help individuals break the cycle of their anxiety.

Similar to ReachOut, Pacifica lets users connect and chat with with others who are dealing with similar issues. Users can scroll through “communities” (insomnia, work stress, and relationships, to name a few) and find others who can relate to their struggles.

Pacifica is available on the web, as well as for iPhone or Android.

For those who suffer from a chronic physical or mental health condition, life can feel lonely. Social support may be hard to come by, as your daily struggl...

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Sprint joins Southwest, Delta in bad backup derby

Everyone tries to be on their best behavior in Washington, hoping Congress won't get annoyed and crush them. Too bad no one told Sprint about that before it joined Southwest and Delta airlines in staging a spectacular display of poor redundancy.

It all started Tuesday when the Fairfax County (Va.) Police Department issued a warning that some cell phone calls weren't getting through to its 9-1-1 center. Then it narrowed it down a bit more, pinpointing Sprint as the carrier that was having problems.

As the day wore on, the problem spread to D.C. and on into Maryland, Delaware, Pennsylvania, and the tristate peninsula known locally as the Eastern Shore. Sprint chimed in and said that some landline calls were also going nowhere.

What could it have been?

Like the Southwest and Delta failures, the Sprint debacle started small and then quickly got out of hand when backups didn't work as expected and small failures cascaded into big ones.

Sprint said a fire in D.C. caused problems at Sprint's data center in Reston, Va. How a fire across the street from Sprint's switch in D.C. caused issues 20 miles away wasn't quite clear, but apparently, emergency Sprint generators in D.C. didn't kick in as they were supposed to and, as so often happens, one thing led to another.

Things were apparently back on track Wednesday morning. As far as is known, no one was harmed because of the outage, but it was another reminder that the systems consumers count on to be there when they need them don't always come through. 

And by the way, emergency responders for years have insisted on referring to the nationwide emergency number as "9-1-1" -- with dashes -- on the theory that if we call it "nine-eleven," panicked callers may look in vain for the "11" button on their keypad. 

Could be, but in the age of texting, do we really expect anyone to text "9," then "-," then "1," then "-" and so on?

Just asking.

Everyone tries to be on their best behavior in Washington, hoping Congress won't get annoyed and crush them. Too bad no one told Sprint about that before i...

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New app interrupts unproductive screen time with learning moments

Parents of kids who are constantly glued to devices may desire a way to surreptitiously incorporate a few learning experiences into their screen time.

Now, a new app called Finny may be able to help parents make device time productive.

The average kid now spends more than seven hours a day on media and devices, according to the American Academy of Pediatrics. And more often than not, it’s games and social media apps that capture a child’s attention.

By enabling parents to transform an unproductive app into an occasionally educational experience, Finny sees itself as a platform that can help end device addiction.

Monitors device usage

“Their games, your rules,” is the motto behind the app, which is free for Android and iOS. A hybrid of parental control and education, the app works by monitoring device usage.

Not only does Finny give parents an idea of how their 7 to 14 year olds are spending their time on mobile devices, it can keep kids from wasting time on unproductive apps.

Before a child can become too consumed by an unproductive game or app, Finny will interrupt with a learning moment. Educational interruptions could be anything from the introduction of new academic content, reinforcement of old academic content, or the promotion of physical activity.

Promotes balance

"We love the idea of taking an everyday occurrence, like a child playing on a smartphone, and turning it into a learning opportunity," Liza McFadden, president of the Barbara Bush Foundation, said in a statement.

"Innovation in the EdTech arena -- like the work that Finny is doing -- has the potential to make a positive impact on families,” McFadden adds.

And Finny seems to have already had a positive impact on many families. In a study, over 90% of users reported improvement in their child’s device habits.

For kids, the platform may offer another benefit: a more peaceful household.

“I don’t have to argue with my parents over screen time anymore,” says the child of a Finny user, adding the app helps him balance his device time.

Parents of kids who are constantly glued to devices may desire a way to surreptitiously incorporate a few learning experiences into their screen time. ...

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Businesses warned about Pokemon Go security risk

Sometimes it can be risky mixing business and pleasure. The International Association of Information Technology Asset Managers (IAITAM) is warning businesses such a risk could occur if employees download the insanely popular Pokemon Go app on company-owned devices.

The association has recommended corporations prohibit the installation and use of Pokemon Go on any devices used for business purposes. The group says that includes "bring your own device" (BYOD) phones/tablets with direct access to sensitive corporate information and accounts.

AITAM CEO Dr. Barbara Rembiesa goes so far as to call the new augmented reality game a “nightmare” for firms trying to keep their email and cloud-based information secure.

“Even with the enormous popularity of this gaming app, there are just too many questions and too many risks involved for responsible corporations to allow the game to be used on corporate-owned or BYOD devices,” Rembiesa said. “We already have real security concerns and expect them to become much more severe in the coming weeks.”

She said to be safe, organizations must keep the app off any device the connects to the organization's network. Here are her concerns:

Data breaches

Rembiesa says the original user agreements for the game allowed Niantic to access each user's entire Google profile, including his or her history, past searches, and anything else associated with a Google Login ID.

That is no longer the case in current versions, but Rembiesa says this meets the definition of a data breach for corporate-owned devices. It's also not clear to what extent data breaches took place before the change and what happened to the accessed information.

Risky knockoffs

Rembiesa says she has seen reports that some versions of the app that are on non-official download sites may include malware. The illicit software may allow cyber-criminals to take control of an infected phone or tablet.

Rembiesa worries that unsophisticated users might not be aware of the risks inherent in downloading from any third party provider, especially if the device is used on a corporate network. She says Proofpoint, an online security provider, has already reported knockoff Android copies of Pokémon Go in the wild containing a remote controlled tool (RAT) called DroidJack.

Encouraging bad behavior

Making an exception and allowing the use of a game app on a corporate-owned device sets a bad precedent, Rembiesa argues. She says employees need to understand the importance of sticking with approved software.

Despite its popularity, she says Pokemon Go must be considered a "rogue download," which is “any software program downloaded onto a device that circumvents the typical purchasing and installation channels of the organization.”

Sometimes it can be risky mixing business and pleasure. The International Association of Information Technology Asset Managers (IAITAM) is warning business...

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Five fun apps for runners seeking motivation

From exercise and endorphins to the ever-coveted runner’s high, there is a lot to be gained from running.

But while running has been called the most accessible sport, the road to becoming a runner isn’t always easy. Novice runners and seasoned pros alike may face progress-hampering challenges along the way. Fortunately, technology is here to lend a hand.

Fun and helpful running apps

Whether it's fitness, fun, or the ability to conquer longer distances you're after, these apps may provide the motivation you need to achieve your running goals.

  • RunGo (Android / iOS). Running a new trail is exercise and an adventure rolled into one. Getting lost, however, might just sap the fun out of the experience. With RunGo, you can hear turn-by-turn directions as you go. Choose from featured routes (around a scenic or historic location, for instance) or create your own. Runners can even choose a path that will create a fun shape on the map, such as a Darth Vader head.
  • Couch-to-5K (iOS / Android). As its name suggests, this popular app helps gradually prepare you to run a longer distance than you might be used to. Couch-to-5K has aspiring distance runners jog three times a week for 30 minutes each session. Just 9 weeks later (and with the help of a virtual coach), you’ll be ready to run your first 3.1 mile race.
  • Runtastic Story Running (Android / iOS / Windows phone). For those who prefer to listen to podcast or books while running, Story Running (which is downloaded within your Runtastic app) may be the perfect digital companion. Story Running is designed to give you a jolt of adrenaline through stories that create a sense of urgency. If exercise alone isn’t motivation enough, perhaps being tasked with rescuing hostages from aliens or escaping from Alcatraz will help you reach the finish line.
  • Charity Miles (Android / iOS). Let the spirit of giving motivate you to go a few extra miles on your next run. Charity Miles allows users to pre-select a participating charity. For every mile run, the app automatically donates 25 cents.
  • Zombies, Run! (iOS / Android). Similar to Story Running, this app aims to light an adrenaline-fueled fire under you as you complete your workout. You’ll be dropped into a zombie apocalypse, which will have you so busy running for your life and protecting your base that you’ll be done with your run before you know it.

From exercise and endorphins to the ever-coveted runner’s high, there is a lot to be gained from running. But while running has been called the most ac...

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White House funds 5G effort despite health advocates' objections

The White House is throwing $400 million into an effort that's supposed to speed development of the Internet of Things (IoT) and 5G wireless technology, a move some health advocates say is premature and unwise.

The federal dollars will be flowing into something called the Advanced Wireless Research Initiative, which is supposed to test and ultimately implement new 5G wireless networking and IoT technologies in the U.S.

The Federal Communications Commission (FCC) last week voted to adopt new rules that open up the 24 GHz spectrum for so-called 5G (5th generation) high-speed broadband. When fully deployed, 5G will make the internet about 100 times faster and supposedly enable widespread development of "connected" cars and appliances.

FCC Chairman Tom Wheeler calls U.S. leadership in 5G "a national priority."

"High-speed, high-capacity, low-latency wireless networks will define our future," Wheeler said at Friday's announcement of the funding for the initiative. 

More towers

Because of the extremely high 24 GHz frequencies, the waves emitted by transponders are extremely short and don't travel very far, meaning that there will need to be many more -- though smaller -- cell towers than today.  

Not everyone thinks this is a good idea. Richard H. Conrad, a biochemist and consultant, says the White House and FCC are putting the cart before the horse -- deploying new technology without first ensuring that it is safe.

"I am a biochemist with a Ph.D. from Johns Hopkins and know without a doubt, from the findings of thousands of research papers published by scientists with independent research funding, that there are many harmful biological effects of non-thermal levels of EMF that are relevant to humans," Conrad said in an open letter to FCC Chairman Tom Wheeler.

Conrad contends that boosters of wireless technology have argued, in effect, that critics must prove the technology is unsafe by showing exactly how it causes harm.

"This is a myth; no one yet knows how smoking causes cancer, or the actual mechanism behind gravity," Conrad said. "Honest and independent research into health effects of 5G is absolutely necessary before actual deployment, and is therefore desirable before 5G system designs and standards have progressed very far."

"Increased productivity"

In a statement, The White House compares the IoT effort to historic breakthroughs achieved by Benjamin Franklin, Thomas Edison, George Washington Carver, and Samuel Morse.

"This effort will help spur innovation in many ways, from pushing the frontiers of tele-medicine through robot-assisted remote surgeries, to testing of autonomous vehicles that talk to each other to keep us safe, to the roll-out of smart manufacturing equipment in factories, to providing more connectivity for more people," administration officials Jason Furman and R. David Edelman said in a blog posting.

"Each one of these innovations has the potential to support increased productivity growth that can put more money in the pocket of American families," said Furman, chairman of the Council of Economic Advisors, and Edelman, Special Assistant to the President for Economic and Technology Policy.

Like the FCC's Wheeler, Furman and Edelman have no training in biological sciences, a sticking point for Conrad.

"Wheeler is a businessman, lobbyist and politician with no training in biological or medical sciences, no understanding of biochemistry or biophysics, no biological research experience, and he listens to advice on biological safety only from scientists who have been bought by industry and tell him what he wants to hear," Conrad said in an email to ConsumerAffairs.

"Wheeler is relying on myths and 'tobacco science' to sweep real science under the carpet, the enormous body of science that shows harmful effects of even low levels of pulsed microwave, yes, non-ionizing, radiation," Conrad said.

The White House is throwing $400 million into an effort that's supposed to speed development of the Internet of Things (IoT) and 5G wireless technology, a ...

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New asthma app offers a handheld way to manage symptoms

Hot and humid summer weather can trigger asthma symptoms, which can quickly turn an afternoon on the playground into an evening in the emergency room.

About every 20 seconds, someone is rushed to an emergency room in the U.S. to be treated for asthma. And half the time, it’s a child.

Managing asthma effectively is possible, but it requires some level of organization. In addition to remembering to take medications, asthma sufferers must follow a schedule and plan for emergencies.

Now, a new doctor-developed app called AsthmaCare is helping pediatric patients track and manage their asthma symptoms.

Sends reminders

“It's hard for anybody to remember to take medications every day, especially when they're feeling well which is often the case with asthma, so we wanted to create something to help people better self-manage their condition,” said David Stukus, MD in a statement

Stukus, who developed the app with colleagues at Nationwide Children's Hospital, adds that the app is designed to help children stay on a schedule with their medicines and follow a plan if symptoms occur.

AsthmaCare can send reminders to take medication, track symptoms in a symptom diary, and even help users stay one step ahead of allergens. 

Tracks environmental triggers

The app is also connected to pollen stations via Wi-Fi, which enables it to give users data on allergen levels. It can even notify users of nearby triggers such as dander, dust, and cigarette smoke.

And while an app isn’t the only way to manage asthma, it seems to have an edge over traditional, written care plans -- especially in the eyes of teens.

In a study, teens used the easy-to-use app every day. Eighty-one percent of the time, they used it more than once a day.

The app can also help make life easier for parents. Joyce Kelso, mother of a 3-year-old with asthma, says the app has helped her and her child manage the condition.

“It’s changed our lives in the fact that my child’s not going to the ER constantly, she’s not having as severe of asthma attacks, and it’s kind of keeping me on top of medicine.”

The free app is available on iPhone and most Android devices.

Hot and humid summer weather can trigger asthma symptoms, which can quickly turn an afternoon on the playground into an evening in the emergency room. ...

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Ad-blockers are now used by 22% of the world's smartphone users, report says

According to a new report, 419 million people (22% of the world’s smartphone users) are now using mobile ad-blocking technology.

PageFair's numbers also indicate that 408 million people are using mobile browsers that block ads by default.

Smartphone users in China account for 159 million instances of mobile ad-blocking, while India is home to 122 million people using browsers that block ads.

Mobile ad-blocking isn’t as quite as prevalent in Europe and here in North America, where there were 14 million monthly active users of mobile ad-blocking browsers as of March 2016.

Finding new approaches

Nancy Hill, CEO of 4A’s, says these numbers validate a long-standing concern in the digital media industry. The report also highlights a need for advertisers to rethink their marketing strategies.

“Consumers are pushing back on mobile and online ads,” said Hill in a statement. “Now is the time for advertising professionals and marketers to take a hard look at ourselves to understand why consumers are not responding to these types of ads, and figure out how we can correct the issue to better engage with the consumers we’re trying to reach.”

An earlier discussion, which sought the opinions of global stakeholders, delved into topic of sustainable advertising on the 'blocked web'. A report on the outcome of the discussion can be viewed here

According to a new report, 419 million people (22% of the world’s smartphone users) are now using mobile ad-blocking technology.PageFair's numbers also...

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'Smarter' JoikuSpot WiFi now available for Android

JoikuSpot, an app that could once magically turn a humble Nokia phone into a free WiFi hotspot, is back with some new features.

Finnish mobile software company Joiku announced today that Android users can once again download JoikuSpot -- but the app has evolved since we last saw it.

Now, users will be able to safely share WiFi networks, hunt down places with good WiFi (and connect to networks automatically, without a password), and even sync to WiFi networks of different countries.

Smart sharing

Joiku hopes the new and improved version of JoikuSpot -- which features an increased attention to user privacy -- will help bring the concept of sharing WiFi networks into a “new era.”

Android users will now have the ability to share their WiFi networks safely, without having to reveal or store passwords in other phones. Users’ passwords can be encrypted via Smart QR codes and Access links.

Thanks to its Smart Sharing functionality, JoikuSpot users can privately share with friends not only their phone’s hotspot, but WiFi networks of their home or office as well.

Connecting to other networks

With WiFi Spotting, users can track down strong WiFi signals in the area. A map can guide users to the spot, then automatically (no password required) connect users to the signal.

Speaking of maps, frequent travelers might enjoy WiFi Globe: a feature that allows users to download and sync to the country WiFi networks of their choice. Those networks can later be easily dumped once they’re no longer needed, should a user need to free up space in their phone.

Finally, with Joiku’s Mobile HotSpot, users can turn their Android phone or tablet into a WiFi HotSpot simply by adding the hotspot icon to their device’s screen.

JoikuSpot is available as a free download for Android phones and tablets via Google Play. A version for iOS will be coming soon, according to the company.

JoikuSpot, an app that could once magically turn a humble Nokia phone into a free WiFi hotspot, is back with some new features.Finnish mobile software ...

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Report finds Android devices have higher failure rate than Apple

No doubt many smartphone owners will take issue, but a new report by a technology company maintains that Android devices are no match for Apple's iOS when it comes to technical performance.

In its Q1 “2016 State of Mobile Device Performance and Health,” Blancco Technology Group, an international data security firm, cites a series of diagnostics tests performed on a wide variety of iOS and Android devices using the SmartChk platform.

The results, the company says, show a “glaring disparity in failure rates” for Android devices when compared to Apple. It says Android devices failed 44% of the time in the tests, compared to just 25% for Apple's operating system.

The report said some of the most popular Android devices, such as the Samsung Galaxy S6, Samsung Galaxy S5 and Lenovo K3 Note, logged the highest failure rates.

Older iPhones performed better

Older iPhones performed better than newer ones. The company said the iPhone 6 and 5s had the highest failure rates among iOS devices – 25% and 17%, respectively.

The tests found crashing apps on 74% of Android devices. Open/cached apps were detected on 44% of the devices. There were many more failures on both platforms in Asia than in North America.

Android still leads in sales

The report's authors note that sales figures confirm that consumers buy more Android phones than iPhones. In fact, the latest numbers show Android increased its marketshare in the latest monitoring period, which ended in February. Android enjoyed strong growth in the U.S., Europe, China, Japan, and Australia.

"Android devices seem to be a contradiction in terms," said Pat Clawson, CEO, Blancco Technology Group. "On the one hand, Android is the number one operating system in terms of global market share. But despite this advantage, Android device performance still lags behind iOS and tends to be plagued by high rates of crashing apps and app cache.”

Of course, late 2016 could witness a shift, when there may be new products on the market for both platforms. Industry reports suggest Samsung could launch the S7 and LG G5 on the Android platform, while Apple is said to be preparing the launch of the iPhone 7.

For more information on the best available phones, providers, and consumer reviews, check out ConsumerAffairs cell phone guide.

No doubt many smartphone owners will take issue, but a new report by a technology company maintains that Android devices are no match for Apple's iOS when...

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Four apps that can help you fall asleep faster

Smartphones are often the last thing we see at night and the first thing we look at in the morning -- but gazing into the glow of screens is not at all conducive to sleep. Research has shown that staring into the blue light of tablet or smartphone displays actually suppresses the production of melatonin, leaving you feeling wide awake.

But while that bright blue light may not exactly be a soothing digital lullaby, smartphones can help expedite your journey towards dreamland in other ways. Several apps have been specially designed to help you drift off quickly and easily without requiring you to stare into your phone. 

Sleep apps

Trouble falling asleep is not uncommon. The American Academy of Sleep Medicine estimates that, here in the U.S., 30% of adults have symptoms of insomnia. Whether you find yourself tossing and turning frequently or just occasionally, a few apps are out there to help you get to sleep faster.

  • MySleepButton. This cognitive science-based app, which works on Android/iOS, aims to help settle a busy mind by having it focus on one mental image at a time. Just select how long you’d like the app to play, then a woman will begin saying words such as “pencil” or “teddy bear.” By imagining each of the simple images, the brain is prevented from dwelling on other concerns. There’s even a mode that allows you to imagine drawing various items. It's available as a free download on iOS. For Android users, it’s $2.99. 
  • Sleep Genius. Astronauts have used Sleep Genius to help them fall asleep, but the earth-bound will love this app just as much. The program combines four neuroscientific elements known to help the brain enter into sleep mode. Sleep Genius will even wake you up in the morning, but not in the harsh way that a beeping alarm clock would. With its Revive Cycle Alarm, users will be gradually awakened over a five-minute period with soothing sounds. Other features include a Power Nap mode, a Relaxation Program, and the ability to monitor the quality of your sleep. It's available in the App Store for $4.99.
  • Sleepmaker Rain. If rainy days make you want to curl up and take a nap, this app might have the same effect on you at bedtime. Even at night, the brain is wired to be alert to sounds that might signal danger. Research shows that a little white noise or nature sounds can help drown out sounds that might cause your sleep to be needlessly interrupted. Choose from a variety of rain sounds, from medium level rain against a window to “torrential downpour.” Restless kids might benefit from this app at bedtime, too. It's available for free on Android.
  • Relax & Sleep Well. This app uses hypnosis and meditation to help reduce stress and anxiety, allowing you to fall asleep easier. Created by hypnotherapist and self-help audio author Glenn Harrold, this app offers a 27-minute hypnotherapy session over a background of soothing sounds. The special frequencies of the background sounds pair well with the meditation and aim to help you slip into a deeper meditative state. It's free on Android and $1.99 for iPhone users. 

Smartphones are often the last thing we see at night and the first thing we look at in the morning -- but gazing into the glow of screens is not at all con...

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Cell phones not linked to any negative mental health issues, study finds

The effects of excessive smartphone use -- on our brains, specifically -- has come under question in recent years. Many say too much cell phone use can venture into addiction territory, while others say the word addiction is too strong to describe one’s relationship with technology.

But as it turns out, the reason you go online or pull out your device may play an important role in determining the health of your relationship with technology. A new study from the University of Illinois has found a link between mobile devices, depression, and anxiety in college-aged students -- but not in the way that you might think.

The study found that cell phones themselves were not the cause of any negative mental health outcomes. Rather, it was the way students treated mobile technology which affected their mental health.

"People who self-described as having really addictive style behaviors toward the Internet and cellphones scored much higher on depression and anxiety scales," said Alejandro Lleras, U of I psychology professor and the study’s conductor.

Motivation for use

Lleras said the goal of the study -- published recently in the journal, Computers in Human Behavior -- was to see if addictive and self-destructive behaviors with phones and the Internet related to mental health.

But the researchers did not find any evidence that phones and the Internet were related to negative mental health outcomes, at least when it came to their use as boredom busters. In other words, what really matters is the “why” behind a person’s Internet or electronic device use.

Students who participated in the survey were asked questions such as, “Do you think your academic work performance has been negatively affected by your cell phone use?” and “Do you think life without the internet is boring, empty, and sad?” Presumably, those who answered “yes” to such questions were more at risk of suffering adverse mental health consequences as a result of device use.

Comfort item

A follow-up study sought to examine the effects of simply having (but not using) a cell phone during a stressful situation. While in the stressful situation, some of the study’s participants were able to keep their phones and some were not. Those who retained their cell phones were less likely to be negatively affected by stress.

“Having access to a phone seemed to allow that group to resist or to be less sensitive to the stress manipulation,” said Lleras in a statement.

The anxiety-tempering effects of having a cell phone seem to suggest that our devices might be something of a modern day security blanket.

But while Lleras says the role of phones as comfort items is “tenuous,” he says the relationship between mental health and one’s motivation to use their device should be further explored. Breaking addictive technology habits may play a key role in supplementing treatment for mental health issues like general anxiety disorder or depression, he said.

“We shouldn’t be scared of people connecting online or talking on their phones,” concluded Lleras. “The interaction with the device is not going to make you depressed if you are just using it when you are bored.” He says this knowledge should help ease public anxiety over new technology.

The effects of excessive smartphone use -- on our brains, specifically -- has come under question in recent years. Many say too much cell phone use can ven...

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Always' latest #LikeAGirl spot confronts gender sterotypes in emojis

An estimated 6 billion emojis are sent each day, according to Swyft Media, and over a billion are sent by girls. But how many of those girls are represented -- in terms of both appearance and the activities they love -- by the emojis they’re sending?

Always, the company behind the “Like a Girl” ad campaign, says not enough. Those tiny, text-accompanying digital illustrations may seem inconsequential, but Always says emoji images are important given their frequent use by young, impressionable people.  

For their newest “Like a Girl” spot, Leo Burnett interviewed girls to ask them how they feel about today’s selection of emojis. In the spot, the girls appear vexed by the bevy of pink-clad ladies whose likes and interests appear to fall exclusively under the hair and makeup category.

“There’s no girl in the ‘professions’ category, unless you count being a bride a profession,” notes one of the girls. “Girls love emojis, but there aren’t enough emojis to … say what girls do,” concludes another.

Societal limitations

Lucy Walker, documentary filmmaker and director of the spot, says society should be aware that they’re sending subtle messages that can limit girls to stereotypes.

"It was so interesting to hear these girls talk about emojis and realize how the options available to them are subtly reinforcing the societal stereotypes and limitations they face every day,” said Walker, adding that she’s excited to help empower girls and push them to “rally for change in societal limitations.”

The spot seems to target puberty-aged girls, as its accompanying infographic explains that girls’ confidence plummets during this time. The infographic also explains that during puberty, a whopping 72% of girls feel held back by society.

Hidden messages

While societal limitations are obviously much broader than emojis, Associate Brand Director and leader of the #LikeAGirl campaign at Procter & Gamble, Michele Baeten, says emojis are projecting subtle, limiting messages that have important implications.

"The girls in emojis only wear pink, are princesses or dancing bunnies, do their nails and their hair, and that's about it,” says Baeten. “No other activities, no sports, no jobs ... the realization is shocking.”

For girls at such a vulnerable age, especially, the selection of emojis currently available reinforces traditional gender stereotypes in a big -- and potentially harmful -- way. Leaders of the #LikeAGirl campaign say hidden messages like these can, in the most subtle of ways, limit the scope of what girls feel they can do.

At the end of the spot, Always seeks to open the floor for debate by imploring girls to share with the brand what emoji they’d like to see, using the hashtag, “#LikeAGirl.”

Co-founder and president of the Unicode Consortium, Mark Davis, has said that while emojis were originally designed to be as neutral as possible, efforts have been made to incorporate a full representation of gender in emoji. A draft specification was released on Monday, which would (if approved) allow for gender variation in currently available emojis. 

An estimated 6 billion emojis are sent each day, according to Swyft Media, and over a billion are sent by girls. But how many of those girls are represente...

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How fast food chains are using apps to win customers

Looking for a way to make fast food even faster? There’s an app for that. To an increasing extent, restaurants and fast food chains are using apps as a way to further streamline the fast food experience -- and even help customers save a little money.

Customers who are interested in ordering ahead, skipping the lines, and getting nutritional data can do just that, straight from their phones. They’ll even be offered somewhat of a more personalized experience in the process.

Domino’s

Domino’s offers a prime example of this personalized ordering experience. In 2014, the company sought to take voice controlled technology to the next level by partnering with their agency, CP+B, and Nuance, the creators of Siri for Apple. Together, the team created “Dom” -- the likeable, voice controlled pizza ordering sidekick.

The move was a seemingly smart one. JP Morgan subsequently called Domino’s, “A technology company disguised as a marketing company disguised as a pizza company.”

Dom can take your order, offer a 'cheesy' joke, or even (during Dom’s BETA phase) send a talking apology card if you weren’t pleased with your pizza ordering experience. The app now even features the ability to pay for your order via Google Wallet.

Rewards

Customer rewards and incentives are a big part of what makes a fast food app successful. White Castle apparently caught on to this, judging from their newly redesigned mobile app which “offers Cravers a way to save money.” To encourage customers to use the app (or order online), the chain is offering those who do so a sack of 10 original sliders for $5.

Dunkin Donuts and McDonald’s also offer users some pretty appetizing rewards. Dunkin Donuts features “DD Perks,” which can be easily tracked by users of their app. Free beverages, member bonuses, and other rewards await those who accrue enough points.

And while they don’t currently offer the ability to order ahead and skip the lines, McDonald’s hoped to persuade customers to download their app by offering free food. The deals -- which vary week-to-week and based on location -- are accessible by downloading the app and registering a username, according to Business Insider.

Users of the McDonald’s app can also participate in a coffee loyalty program, where customers can earn a free McCafe beverage for every five they purchase.

Skip the lines

While not every fast food app features the ability to skip the lines by ordering ahead, those who do are winning customers.

Users of the Chick-Fil-A mobile app (which isn’t available for every location just yet) can order and pay online. You can even have the food delivered right to your car at some locations.

Similarly, Chipotle, Subway, Taco Bell, and Wendy’s all accept mobile payments, and offer customers the ability to place their order through the app and pick it up in-store.

Looking for a way to make fast food even faster? There’s an app for that. To an increasing extent, restaurants and fast food chains are using apps as a way...

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Dog sharing app allows owners to loan out their dogs

Dog lovers without a pooch of their own may be able to get their next dog fix with Bark’n’Borrow — an app through which you can find a dog to borrow.

The way the app works is simple. Create a profile, pass the screening to become a verified “dog lover,” and you’ll be able to connect with a community of dog lovers in your local area.

The three-sided marketplace aspect of Bark’n’Borrow allows you to become either a Sitter (someone who gets paid for their time), a Borrower (rewarded simply with canine companionship), or a dog owner looking for some extra love for your dog.

Borrowing a pup

If you’re a borrower looking to spend time with a dog — whether it’s for an afternoon walk, a day of play, or the entire time a pooch’s human is on vacation — just peruse some doggy profiles and you’ll be on your way.

Similar to a dating app for humans, each dog has a profile which includes a photo and some basic info, such as breed, obedience level, and how it well it gets along with other dogs and children. Profiles also include typical dog characteristics, such as “curious,” “affectionate,” and “energetic.”

Once you’ve found a winner, borrowers can reach out to the owner. If everyone gets along after meeting, they can arrange for dog walking or sitting later.

Despite the meet-and-greets, however, there is a definite trust aspect to the service. Handing off your dog to a relative stranger might feel a little strange to a dog owner, but the company assures owners that each potential borrower has undergone a careful vetting process.

Sharing economy

Bark’n’Borrow’s founder Liam Berkeley believes the service might be a natural step in the sharing economy. In the age of AirBnB and Uber, dog sharing doesn’t seem too outlandish a concept.

He says the idea for the app came to him when he was unable to commit to a dog due to work demands.  "I was contemplating rescuing a dog — I grew up with dogs — but I was working 12 or 13 hour days," Liam Berkeley tells Fast Company. "My girlfriend at the time was still in school and had a job on the side. So as much as we were thinking of getting one, we knew it wasn't the best idea."

So Berkeley would occasionally borrow neighbors' dogs and take them for hikes. He soon discovered there was no shortage of people like himself who missed having a dog of their own, so he decided to create the simple dog-matching service.

Dog owners and borrowers currently pay nothing for the service, but eventually Berkeley plans to charge a small fee for borrowers as well. The fee, he tells Fast Company, will help cover insurance and customer support, and a portion of the profits will go to animal rescue.

Dog lovers without a pooch of their own may be able to get their next dog fix with Bark’n’Borrow — an app through which you can find a dog to borrow.Th...

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Are you addicted to your smartphone?

We’ve all been there: that moment when an instant of boredom becomes twenty minutes of mindlessly toggling back and forth between apps. “This is way better than sitting here doing nothing,” your brain tells you, as you take in yet another photo of your high school friend’s dog.

While these phone-staring sessions are usually nothing more than a time waster, they can easily turn into something more harmful if left unchecked. As technology sinks its roots deeper into our daily lives, digital dependency is becoming more common. For many, device use can spiral into compulsion territory.

So how can you tell if you’re in an unhealthy relationship with your smartphone? You can start by turning it off, says Mariya Shiyko, PhD., an Assistant Professor in Northeastern University’s Department of Applied Psychology.

Take a break

According to Shiyko, an expert on digital detoxes, the best way to tell if you could stand to distance yourself from your device is by turning it off for a few hours.

“See if you can continue engaging with life without constantly thinking about the end of this miserable break, compulsively reaching for your phone or checking the time,” says Shiyko in an interview with ConsumerAffairs. During this break, are you able to function well and enjoy life? If not, then you may be too dependent on your device.

“You know it’s not healthy if you NEED your device,” says Shiyko, adding that if your happiness and well-being become tied up in anything else — whether it’s drugs, alcohol, or your phone — it has become an addiction. Digital addiction is no different from any other forms of addiction, she says.

There’s nothing wrong with a glass of wine just as there’s nothing inherently wrong with technology, explains Shiyko — but with each, there is the potential for misuse. 

Detoxing

If you’ve decided to give technology a rest, the next question might be “How?” — especially if you frequently use your device for work purposes. Shiyko says that as with anything else, you can go big or small.

Digital detoxing, she says, is similar to a bodily cleanse in that there are many different routes to take. “A spring cleanse for your body might look like a week on juices and light vegetarian meals or it may be one fasting day per week continuously,” says Shiyko. “Everyone needs to find what works for them.”

She suggests choosing one weekend a month to keep your phone and email locked up. Or you could go smaller by detaching yourself from computers and devices for half a day on a weekend, or simply by turning them off after 8 PM daily.

Instead of being glued to a computer screen or a TV, go outside or make plans to visit your friends or family in person, says Shikyo. In conquering your reliance on technology, you’ll experience benefits similar to those of a person who is mentally healthy — less stress, anxiety, depression, and higher levels of life satisfaction.

“The more mental freedom one has, independently of gadgets or political news,” says Shiyko, "the more one can enjoy meaningful interpersonal interactions, creativity, and multitudes of opportunities that technology enables.”

We’ve all been there: that moment when an instant of boredom becomes twenty minutes of mindlessly toggling back and forth between apps. “This is way better...

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New York's public wi-fi network goes live

New York City's public Wi-Fi network went live this morning, providing free, advertising-supported Internet access from four hubs on Third Avenue between 15th and 19th Streets.

It's expected the system will spread throughout the city's five boroughs, replacing public phone booths at about 7,500 locations. 

Today's rollout is also a test of the LinkNYC network, which provides newly laid fiber to each hub. The network is still officially in beta and some changes may be made, but for now, the system is significantly faster than many commercially available connections.

A Verge test found both upload and download speeds faster than 300 Mbps.

The hubs, or kiosks, sort of look like updated phone booths, only without the phone. Each hub will include two USB charging ports, touchscreen web browsing, and two 55-inch ad displays.

Mayor Bill de Blasio's administration is framing the project as an extension of the mayor's focus on inequality.

In a statement, de Blasio called expanded broadband access “essential for everything we need to do to be a fair and just city” and said the system would be not only the largest but also the fastest municipal wi-fi network in the world, The New York Times reported.

Administration officials say the system will help close the "digital divide" by making it easier for low-income New Yorkers to have access to broadband on their smartphones and laptops.

New York City's public Wi-Fi network went live this morning, providing free, advertising-supported Internet access from four hubs on Third Avenue between 1...

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Digital detox tips to help you regain perspective

When you’re immersed in a virtual world behind a glowing screen, it becomes nearly impossible to connect to the real world around you. Smartphones are useful tools, but more people are absentmindedly scrolling through feeds and emails out of habit rather than necessity these days.

If taking stock of 2015 included the realization that you might’ve spent too much time staring at your smartphone, a digital detox may be in order.

As with most other problems, understanding the root of the behavior is key to correcting it. So why exactly have smartphones become the drug of choice for so many?

Primitive instinct?

According to Nicholas Carr, author of The Shallows: What the Internet is Doing to Our Brains, instinct may be driving the compulsion to constantly check smartphones.

"One thing my research made clear is that human beings have a deep, primitive desire to know everything that's going on around them," said Carr. This instinct, he adds, was probably a useful survival tool for cavemen and cavewomenbut in this digital age, we’re faced with an endless stream of information. For many, that’s where the obsession begins.

“I'm sure one of the main reasons people tend to be so compulsive in their use of smartphones is that they can't stand the idea that there may be a new bit of information out there that they haven't seen,” says Carr.

To prevent smartphones from stealing your ability to engage in contemplation, reflection or even just be alone with our thoughts, experts suggest ocassionally taking some time off from them.

Disconnecting

The most important aspect of detoxing, according to Holland Haiis, author of Consciously Connecting, is to stop putting it off.

“Leave your phone at home so you can connect to the activity you’re doing, even if it’s errands,” said Haiis. When it’s time for bed, Haiis suggests removing your phone from your bedside table. Checking it immediately in the morning, “catapults you onto the merry-go-round.”

The allure of a vacation, Haiis reminds readers, is that it's a time to truly disconnect and start doing instead of being. "After all," she says, “the world looks completely different when you’re not looking down all the time.”

Managing smartphone use

If you’re looking to cut back on your smartphone time but not willing to go as far as a digital detox retreat, experts suggest these steps to control usage:

  • Be conscious of the situations and emotions that make you want to check your phone. Is it boredom? Loneliness? Anxiety? Maybe something else would soothe you.

  • Be strong when your phone beeps or rings. You don't always have to answer it. In fact, you can avoid temptation by turning off the alert signals.

  • Be disciplined about not using your device in certain situations (such as when you're with children, driving, or in a meeting) or at certain hours (for instance, between 9 PM and 7 AM). "You'll be surprised and pleased to rediscover the pleasures of being in control of your attention," Carr says.

When you’re immersed in a virtual world behind a glowing screen, it becomes nearly impossible to connect to the real world around you. Smartphones are usef...

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Report finds U.S. consumers look at smartphones 8 billion times daily

There may come a day when every child born in the U.S. is issued a smartphone as he or she leaves the hospital. Otherwise, how are they going to be able to cope?

Deloitte garnered some attention for its newly released 2015 Global Mobile Consumer Survey with this factoid: if you added up all the times all U.S. consumers look at their smartphones in a single day, you'd get a number around 8 billion.

Increasingly, we're looking at these devices when we are also engaged in other activity – like driving, working, talking to a friend, shopping, or watching television.

In its analysis of the data, Deloitte researchers conclude that consumers are more distracted than ever before. In fact, this year's survey results show unprecedented levels of multitasking while interacting with mobile devices.

Texting

The most common use of a smartphone is still sending and receiving text messages. Upon waking, 17% of smartphone owners say they check their phones before doing anything else.

Before turning in for the night, 13% of smartphone users say they look at their phone one last time.

According to Deloitte, consumers have no intention of ever switching off their smartphones.

Then again, they might if something else came along.

Replacing smartphones with AI

In its Hot Consumer Trends of 2016, Ericsson Consumerlab holds out the prospect that artificial intelligence (AI) might completely replace smartphones within the next five years.

The report notes that the screen age began in the 1950s, with television. Then computer screens were added to the mix. Now smartphones are a constant fixture.

But screens are an old technology. Consumers constantly complain about the small screens on their devices and the speed at which the batteries run down.

“The contradictory demands for power-draining larger screens and a longer battery life however, highlight a need for better solutions, such as the use of intelligent assistants to reduce the need to always touch a screen,” the authors write. “In fact, 85% of smartphone users think wearable electronic assistants will be commonplace within 5 years.”

Bring it on

In fact, smartphone users appear to be all in for a switch to AI capabilities. Half of those surveyed would like to be able to talk to their household appliances as though they were people.

They would also like to see AI take over many common activities, such as searching the net, getting travel directions, and as personal assistants.

What isn't exactly clear is what such a device or interface would look like. But you can be sure that somewhere, engineers are working on it.

There may come a day when every child born in the U.S. is issued a smartphone as he or she leaves the hospital. Otherwise, how are they going to be able to...

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With Zwivel, cosmetic procedures start online

Cosmetic surgery has come a long way over the years and has come even further recently.

Zwivel, a new online cosmetic consultation service, is changing the way patients search for and connect with cosmetic doctors by streamlining the information-gathering process.

“The purpose of Zwivel is to help consumers research and quickly choose cosmetic services and doctors online before an in-office consultation,” said Scott Kera, chief operating officer of Zwivel.

An answer to the problem of wasted time

Co-Founder and CEO Dr. Gary Breslow and his buddy Craig Abramowitz came up with the idea for the service while discussing the problems that plague in-person cosmetic consultation appointments -- namely that of time waste.

Since its launch in August 2015, Zwivel has seen rapid adoption by the cosmetic industry and patients seeking information online.

“With more than 60% of all cosmetic consultations ending up with no procedure being performed, a great deal of valuable time is wasted – by both cosmetic doctors and patients – on consultations that go nowhere. Zwivel tackles this inefficiency head on,” says PR Rocket.

Patients can benefit as well. Approximately 90% of all cosmetic patients are women -- women who have jobs, children or both. Most don’t have time to go to multiple plastic surgeons to find out which doctor and which procedure is right for them.

Consult with multiple doctors without ever leaving your home

The entire process is completely private and secure. Within a HIPAA/HITECH compliant interface, users can upload photos and videos of themselves and have all their preliminary questions answered. They can share their concerns and medical history, as well as their budget and time frame for the treatment.

Doctors can then review the information and respond with their treatment recommendations and fee estimates. At this point, if the patient is satisfied he or she can schedule a full, in-office consultation.

Zwivel is free for both cosmetic patients and doctors via Zwivel.com or the free Zwivel app for iPhone and Android.

Cosmetic surgery has come a long way over the years and has come even further recently.Zwivel, a new online cosmetic consultation service, is changing ...

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When it comes to smartphones, consumers still prefer iPhones

Consumers buy more iPhones than any other mobile device, but Google's Android operating system maintains a slim lead over Apple's iOS.

Those are the findings of the third quarter analysis of smartphone sales, conducted by comScore, a media analytics firm.

According to the data, Apple was the top smartphone manufacturer with 43.6% OEM market share, while Google Android led as the #1 smartphone platform with 52.3% percent platform market share.

Facebook was the top individual smartphone app.

77.4% have a smartphone

If it seems everyone in America has a smartphone, it might be because they do. The comScore data shows 192.4 million people in the U.S. owned smartphones – making up 77.4% mobile market penetration – during the three months ending in September.

Behind Apple's 43.6% share of the market was Samsung, with 27.6%. LG was a distant third with 9.4%, Motorola was fourth with 4.8% and HTC was fifth with 3.3%.

But Apple does not permit other manufacturers to use its operating system, so it trails Google's Android, which is used by much of the rest of the field.

Among smartphone owners, 52.3% are Android, 43.6% Apple, 2.9% Microsoft, 1.2% Blackberry, and 0.1% Symbian. Blackberry recently signaled a move to Android with the introduction of the Blackberry Priv, which will run on the Google platform.

Consumers increasingly are using their phones as PCs, accessing the Internet with a wide variety of apps. The overwhelming favorite in the third quarter was Facebook, deployed by 76% of users.

YouTube was second, at 61%, followed closely by Facebook Messenger at 60.9%. Google Play was the fourth most-used app at 52% and Google Search was fifth, at 51%.

Consumers buy more iPhones than any other mobile device, but Google's Android operating system maintains a slim lead over Apple's iOS.Those are the fin...

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Android adware getting more dangerous

When you download a popular app to your Android smartphone, make sure you know the source.

Lookout, a mobile security firm, has found widespread examples of extremely dangerous adware getting onto consumers' phones when they download what they believe is a legitimate app.

Lookout says there are a number of things that make this development worrisome. First, this new generation of malware roots the device when the user installs it, making it, for all intents, a system application.

“Adware, which has traditionally been used to aggressively push ads, is now becoming trojanized and sophisticated,” Lookout's Michael Bentley writes in the company blog. “This is a new trend for adware and an alarming one at that.”

And it gets worse. Consumers are downloading this dangerous new form of adware because it has been integrated into many legitimate and popular apps, including Candy Crush, Facebook, GoogleNow, NYTimes, Okta, Snapchat, Twitter, and WhatsApp.

Third-party source

Bentley says hackers simply repackage and inject malicious code into these popular applications, and then later publish them to third-party app stores. He says many of these apps are actually fully-functional, providing their usual services, in addition to the malicious code that roots the device. That means the user has no way of knowing his or her device has been compromised.

Lookout says it has found thousands of these trojanized apps in third party app stores. When a consumer downloads one of these hijacked apps, it usually means having to buy a new phone, since the malware often can't be removed.

The company says the developers of apps that have been hijacked are also victims, since their brands may suffer with the spread of the malicious adware.

Meanwhile the danger is likely to increase.

“We expect this class of trojanized adware to continue gaining sophistication over time, leveraging its root privilege to further exploit user devices, allow additional malware to gain read or write privileges in the system directory, and better hide evidence of its presence and activities,” Bentley concludes.

When you download a popular app to your Android smartphone, make sure you know the source.Lookout, a mobile security firm, has found widespread example...

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Sprint fined $2.95 million for mistreating customers with lower credit scores

If your credit score is not so hot, it makes companies nervous about signing you up for a monthly subscription. Sprint solves this by putting you in a special Account Spending Limit (ASL) program and charging you an extra $7.99 per month.

That might have been OK if it had given customers proper notification, which the Federal Trade Commission says it failed to do, an oversight that will cost Sprint $2.95 million in penalties.

“Sprint failed to give many consumers required information about why they were placed in a more costly program, and when they did, the notice often came too late for consumers to choose another mobile carrier,” said Jessica Rich, director of the FTC’s Bureau of Consumer Protection. “Companies must follow the law when it comes to the way they use consumer credit reports and scores.”

Because Sprint allows customers to be billed for services after they are used, they are subject to the requirements of the Fair Credit Reporting Act and its Risk-Based Pricing Rule. The rule requires that companies inform consumers whenever they are offered service on less favorable terms – such as the ASL program – as a result of information from their credit reports or scores.

“Sprint puts its customers first and is always working to provide clear and necessary information to customers," said  Jeffrey S. Silva, corporate communications manager for Sprint. "The FTC’s relatively new Risk Based Pricing Rule requires certain specific disclosures in specific formats be provided by letter to ASL (Account Spending Limit) customers and applicants. 

"The FTC agreed that we were including almost all of the relevant information in our ASL letters, but requested that we modify the format of the letter.  We appreciated the dialogue with the FTC and we have already implemented the changes requested by the FTC.”

Too little, too late

The complaint alleges that Sprint in many cases failed to provide consumers placed in the ASL program with all of the disclosures in the required notice and often provided the notices to consumers after the window in which they could cancel their service and change to another provider without paying an early termination fee, leaving consumers unable to shop for another carrier that might have offered them better terms.

The proposed settlement requires Sprint to pay a $2.95 million penalty for violations of the Risk-Based Pricing Rule. It also requires the company to abide by the Rule’s requirements in the future. In addition, Sprint is required to provide the required notices to consumers within five days of signing up for Sprint service or by a date that gives them the ability to avoid recurring charges like those in the ASL program.  Finally, the proposed settlement requires Sprint to send corrected risk-based pricing notices to consumers who received incomplete notices from the company.

If your credit score is not so hot, it makes companies nervous about signing you up for a monthly subscription. Sprint solves this by putting you in a spec...

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Ultimeyes agrees to stop claiming its app improves vision

If your vision's not so good, you can wear glasses or contacts or maybe have a laser procedure to sharpen things up. But don't count on Ultimeyes, a smartphone app that claimed it could improve users' vision.

The app's promoters, Carrot Neurotechnology, Inc., has agreed to pay $150,000 and stop making claims not supported by scientific evidence.

“This case came down to the simple fact that ‘Ultimeyes’ promoters did not have the scientific evidence to support their claims that the app could improve users' vision,” said Jessica Rich, Director of the Federal Trade Commission's Bureau of Consumer Protection. “Health-related apps can offer benefits to consumers, but the FTC will not hesitate to act when health-related claims are not based on sound science.”

According to the FTC’s complaint, since 2012, Carrot Neurotechnology, Inc. advertised and sold Ultimeyes on the company’s website and through third-party app stores including the Apple App Store and Google Play Store, claiming it is “scientifically shown to improve vision.”

"Turn back the clock"

Ads for Ultimeyes stated that the app, which sells for between $5.99 and $9.99, would “Turn Back The Clock On Your Vision.” The ads further claimed that users would benefit from “comprehensive vision improvement” for activities such as sports, reading and driving, and that using the app would reduce the need for glasses and contact lenses. 

The app is based on a series of visual exercises related to reading speed, contrast sensitivity, and low light conditions among other elements.

The ads further claimed that studies, including those conducted by Aaron Seitz, prove Ultimeyes works. The FTC alleges that Seitz’s studies and other “scientific research” do not prove Ultimeyes improves vision. The FTC also alleges the marketers failed to disclose Seitz’s affiliation with the company when touting his studies in advertising.

If your vision's not so good, you can wear glasses or contacts or maybe have a laser procedure to sharpen things up. But don't count on Ultimeyes, a smartp...

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New app creates customized radio news content

Pandora was one of the first music apps to allow you to create your own radio station, simply by selecting an artist, song or genre of music. It has had many imitators since, most recently Apple Music.

Meep is an app following in Pandora's footsteps, but with one huge difference. Instead of music, the iPhone app creates a radio station delivering news about a user's particular interests.

Meep launched this week for iOS with an Android version soon to follow.

Personal stations

According to the creators, the app instantly creates personal stations that play the latest audio stories about topics that users choose. There might also be short clips of ancillary content like music and local weather thrown in for good measure.

The app's developers make it sound simple. Users just pick a subject and start listening, without having to dig through podcasts or blog posts. Once a user skips a story, Meep makes a note of that – just like Pandora – and doesn't offer content along that subject line again.

Meep also has a feature to allow users to record their own content, in the form of short comments about a particular story. These short audio bites are then shared among friends.

Content you don't have to look at

"Meep selects and plays content you're passionate about while you're running, driving, or simply can't look down at your phone," said Mark DiPaola, founder and CEO of Meep. "Now you can use your commute to keep up with your favorite technologies, celebrities, sports teams, companies, cities, and over a million other topics. Want a station dedicated to Asteroids and Alpacas? Presto! We won't even ask why."

Meep is currently lining up a stable of news-readers, who will turn web-based text articles into audio content. If you're interested in trying out, click here. We have no idea what they pay.

Meep is also trying to line up publishers, who would like their content turned into audio. However, print copy is seldom written to be spoken. Radio copy is written for the ear – at least, once upon a time it was.

The Internet is the perfect laboratory for bold and creative ideas. That said, this new app will face some pretty stiff competition.

There are plenty of actual radio stations and thousands of podcasts available from apps like TuneIn and IheartRadio. The most listened-to podcast in the country is This American Life, a compelling NPR show with a talented staff that excels at the art of storytelling.

Pandora was one of the first music apps to allow you to create your own radio station, simply by selecting an artist, song or genre of music. It has had ma...

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Truecaller releases app to ID all incoming texts

If you get a text from a friend or someone in your list of contacts, their name pops up, making it easy to know who is sending a message.

But if it is just a number that flashes on your screen, it could be from anyone – and most likely it's an anonymous spammer.

Truecaller, a mobile call management company, has just released Truemessenger, an app which the company claims will make texing smarter and more social. It's a free download on Google Play.

The purpose of Truemessenger is to put a name, and even a face, to every incoming number.

Filter and block spam

“It helps you filter and block spam by tapping into vibrant community of more than 150 million members who help protect one another from annoying intrusions,” the company said in a release.

When you receive a text, the app, which is integrated with Truecaller's network of 1.7 billion numbers worldwide, scans social networks and automatically assigns photos, nicknames, and other contact information to the incoming message.

The app also allows you to set up your own spam rules, just like you can with email. SMS spam is either filtered out of your inbox or blocked altogether. You have less clutter in your inbox and aren't left guessing who might be trying to reach you.

Truecaller Takes Aim at Mobile Spam

Right now Truecaller says spam accounts for 15% of all SMS messages sent, which represents 1.2 trillion spam messages each year. In the U.S. market, while there are plenty of other communication options, texting is still the most-used app, making it a prime target for telemarketers and fraudsters.

You know, the free gift card offers, marketing promotions, and outright phishing scams? The scammers trying to pull them off lose their anonymity.

And if you happen to be the target of an anonymous cyber-bully who texts hateful messages, the app can gather and present quite a bit of information about your tormentor.

Truecaller says its Truemessenger app gives users the ability to detect, block, and report spam alongside other Truecaller members. Users also have the option to avoid messages from unwanted numbers and contacts.

Orderly inbox

The result is a clean and neat inbox where spam messages disappear into a separate folder. Users may also add advanced filtering options by creating customized filters with known spam keywords or number series, such as area codes or country codes.

“We are in the middle of the Wild West in terms of spam messages we receive on our mobile phone, and despite the evolution of services in other areas, little has been done to curb the number of spam messages we receive on a daily basis,” said Alan Mamedi, CEO & co-founder of Truecaller.

The brief video clip below shows how Truemessenger works.

If you get a text from a friend or someone in your list of contacts, their name pops up, making it easy to know who is sending a message.But if it is j...

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FTC silences "Mole Detective" app claims

We may have finally heard the last of the "Mole Detective." The Federal Trade Commission has wound up its action against promoters of an app that claimed it could detect skin cancer, or melanoma after the last defendant agreed to a settlement. 

Avrom Lasarow settled FTC charges that he and other promoters made false and unsubstantiated claims for the app, which sold in the Apple and Google app stores for up to $4.99.

 Melanoma kills an estimated 10,000 people in the U.S. each year.

“We haven’t found any scientific evidence that Mole Detective can accurately assess melanoma risk,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “If you’re concerned that a mole may be cancerous, please see a health professional.”

In a statement to ConsumerAffairs, Lasarow called the FTC's approach "a real disappointment" and said his decision to settle was based on the cost of litigation. 

Lasarow and his company took over marketing the Mole Detective app in August 2012, after it was originally developed and marketed by Kristi Kimball and her company, New Consumer Solutions LLC, and added derivative apps like “Mole Detect Pro.”

Deceptive claims

The Mole Detective apps instructed users to photograph a mole with a smartphone and input other information about the mole. The apps then supposedly determined the mole’s melanoma risk to be low, medium, or high.

The FTC alleged that the marketers deceptively claimed that the apps accurately analyzed melanoma risk and could assess such risk in early stages. The marketers lacked adequate evidence to support such claims, the FTC charged.

We may have finally heard the last of the "Mole Detective." The Federal Trade Commission has wound up its action against promoters of an app that claimed i...

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Samsung jumps into the mobile payments business

Not to be outdone by its rival Apple, Samsung has announced that Samsung Pay will be available to U.S. consumers starting next month.

The service began in South Korea earlier this month. The company used a press event in New York on Thursday to announce the September launch in the U.S.

The concept is very similar to Apple Pay. It turns your mobile device into a digital wallet, letting users seamlessly pay for things at retailers.

The company says Samsung Pay will use Near Field Communication (NFC), fingerprint verification, and digital tokenization to shield users' credit card information. It says if a retailer can accept Apple Pay or Android Pay, it should be able to work with Samsung Pay as well.

Step forward

Dan Wagner, ecommerce veteran and CEO of Powa Technologies, says the launch of Samsung Pay, along with its latest devices, represents a step forward for the international mobile payment scene.

“Samsung launching into competition with Apple Pay demonstrates how two of the largest tech leaders in the world are putting mobile payment as a major priority,” he said.

The big news may be that Samsung Pay will work with the old fashioned magnetic strip card readers, at a time when many independent retailers lack the resources to convert to the new chip-based EVM technology.

“Samsung’s inclusion of magnetic strip recognition alongside NFC puts it ahead of Apple Pay, bringing more versatility for users and merchants alike – especially in markets where magnetic strip readers are still the main payment method,” Wagner said.

Still more to do

However, Wagner says both Apple Pay and Samsung Pay both still lack the cutting edge needed to fully meet user demand.

“With consumers’ shopping habits constantly evolving, now is the time to rethink the entire shopping experience and break free from the reliance on point-of-sale terminals and queues,” Wagner said. “What shoppers and merchants alike really want is a cross-channel payment method that allows transactions to take place anywhere, at anytime, from a range of mediums. Until this level of freedom is achieved, mobile payments will remain more of an added bonus than the must-have feature the industry needs.”

Apple Pay got off on a wrong foot with some major retailers soon after its October 2014 launch. Less than a week after it was first made available, Apple Pay encountered its first roadblock when the pharmacy chains CVS and Rite-Aid stopped accepting it.

Although neither chain officially explained why, most observers agree it was because they decided instead to work with a retailer-owned group.  

Not to be outdone by its rival Apple, Samsung has announced that Samsung Pay will be available to U.S. consumers starting next month.The service began...

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Verizon Wireless phasing out phone subsidies

Cellphones – even before they were smartphones – have always been a pricey consumer purchase. That's why carriers have always “subsidized” the cost of a phone, giving it to you at a cheaper price, if you sign a 2-year service agreement.

If you cancelled before the 2 years was up, the carrier charged an early termination fee (ETF) to make up for the part of the phone subsidy it wouldn't get back by billing you each month.

Verizon Wireless has been discouraging that business model for months now and starting August 13, is ditching it entirely for new subscribers. That means new Verizon subscribers will either pay the full retail price of a phone – usually more than $600 for the latest model – or will make monthly payments on the phone at the full retail price.

Disappearing subsidy

Gone will be the option to pay $200 for a $600 phone and sign a 2-year contract. On the other hand, there will be no need for a 2-year contract, although consumers will have to pay off the balance on financed phones if they cancel their service.

Verizon Wireless buried this news in a press release outlining its new data plan line-up that also goes into effect August 13.

Verizon is hardly the first carrier to end the subsidy business model. T-Mobile did it back in 2012, allowing customers to finance the cost of the phone in monthly payments on their bill. Verizon used that approach with its Verizon Edge – a monthly financing option that becomes the norm this week.

Starting Thursday, Verizon Wireless says its new pricing plan will simplify things for customers. It compares its 4 service plans to the sizes you choose from for your morning cup of coffee.

4 sizes

  • Small: $30/month for 1GB of shareable data
  • Medium: $45/month for 3GB of shareable data
  • Large: $60/month for 6GB of shareable data
  • X-Large: $80/month for 12GB of shareable data

Verizon says each size comes with unlimited talk and text and if you need extra data one month, you can get it for $15 per GB. Why change?

“Customers said they don’t want to have to do a lot of math to figure out their best options, and we heard them,” said Rob Miller, vice-president of consumer pricing for Verizon Wireless. “A plan with small, medium, large and x-large choices makes sense for the way people actually use their wireless service.”

Verizon is also changing its monthly line access charges. Every smartphone line is $20 per month, tablet and Jetpack lines are $10 per month, and connected device lines for devices like smart watches are $5 per month, all the time. All 4 data options can be shared with up to 10 devices.

If you have an account with a subsidized account, Verizon says you can keep it. But if you want to switch to one of the new data plans, you have to put your subsidized phone in a drawer and buy a new one, at the full retail price.

Cellphones – even before they were smartphones – have always been a pricey consumer purchase. That's why carriers have always “subsidized” the cost of a ph...

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“Prized” app developer settles charges that it hijacked phones for cryptocurrency mining

The developer of an app called “Prized” has reached a settlement with the Federal Trade Commission and New Jersey's Attorney General over charges that the app hijacked users' mobile devices and used them to mine virtual currencies, or cryptocurrencies, on behalf of the app developer.

As part of the settlement, Ohio-based company Equiliv Investments and app developer Ryan Ramminger agreed to pay $50,000. The agreement says that $5,200 of that money will go to New Jersey to cover the state's legal costs, with the remaining $44,800 to be suspended and vacated after three years if Ramminger keeps to the rest of the agreement. In other words: if he doesn't create any more malware in the next three years, he'll get that $44,800 back. Ramminger and Equiliv are also supposed to destroy any customer information they collected while distributing the app.

Harvesting cyptocurrency without consent

The FTC's complaint, available in .pdf form here, says that Prized, which was available “since at least February 2014” in the Google Play and Amazon App Stores in addition to various third-party sites, claimed to “give consumers points redeemable for prizes in exchange for completing tasks, such as downloading affiliated apps, playing video games embedded with advertisements, or taking online surveys.”

Instead, the app used malware to turn people's devices into zombie miners harvesting cryptocurrency without the owners' knowledge. As the FTC explains: “Virtual currencies are created by solving complex mathematical equations, and the complaint alleges that the app attempted to harness the power of many users’ devices to solve the equations more quickly, thus generating virtual currency for the defendants.”

This, in turn, caused the devices' batteries to lose power more quickly and recharge more slowly, and also burned through users' data plans. Depending on how much data and computing power it used compared to how much the device actually had, the app was intrusive enough to potentially render the devices all but unusable.

And, of course, nobody received any of the redeemable “prize points” the app initially promised.

A "Trojan horse"

To top it all off, the Prized app's terms of use explicitly stated that “any computer software code and/or advertising tags loaded on an end users' device by Prized are and will be free of malware, spyware, time bombs, and viruses.”

Acting New Jersey Attorney General John J. Hoffman said, “Consumers downloaded this app thinking that at the very worst it would not be as useful or entertaining as advertised. Instead, the app allegedly turned out to be a Trojan horse for intrusive, invasive malware that was potentially damaging to expensive smartphones and other mobile devices.”

The developer of an app called “Prized” has reached a settlement with the Federal Trade Commission and New Jersey's Attorney General over charges that the...

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Security flaw in Android apps from Google Play store leaves user passwords vulnerable

Android owners take note: security researchers from AppBugs, a free Android app designed to spot dangers in other apps on the same device, have discovered “dozens” of Android apps in the Google Play store that leave user passwords and other sensitive data exposed because the apps either fail to properly apply encryption, or don't bother applying it at all.

The faulty apps include the official apps from the National Basketball Association, Safeway supermarkets, Pizza Hut, and Match.com.

AppBugs' CEO Rui Wang told Ars Technica that the Match.com app uses an unencrypted hypertext transfer protocol to send user passwords, which in turn means pretty much anybody in a position to monitor the traffic (such as somebody using the same wi-fi network as the Match app user) to read those passwords.

Meanwhile, other apps including NBA Game Time and the Safeway and Pizza Hut apps do attempt encryption but don't apply it correctly, leaving those apps' users vulnerable to man-in-the-middle attacks (which allow hackers to alter, spy on or control data while it's traveling between the sender and receiver).

"S" for secure

“Hypertext transfer protocol” is the “http:” you see at the beginning of many web addresses. Essentially, it's the protocol that lets visitors view a website and send information back to the server. If, instead, you see an address starting with “https,” that's not the plural form of http; in this context, the “S” stands for “secure.”

So if you're engaged in sensitive, password-protected online activities – such as email, online banking or credit card activity – the web address for that page should start with “https,” not “http,” to indicate that your data is being encrypted before it's sent.

But AppBugs discovered that some Google Play apps, including Match.com, didn't bother using a secure “https” address in the first place, whereas other apps including Safeway and Pizza Hut at least made the attempt, but didn't implement it properly.

This is not the first time such flaws were discovered in official Google Play apps; last September, student researchers from City College of San Francisco discovered a fatal HTTPS flaw in several Android apps including those of OKCupid Dating and CityShop – for Craigslist. Those apps, like Safeway, NBA Game Time and others recently discovered by AppBugs, attempted and failed to apply secure encryption, leaving users vulnerable to man-in-the-middle attacks.

The faulty apps exposed by AppBugs have a total of more than 200 million downloads between them.

Android owners take note: security researchers from AppBugs, a free Android app designed to spot dangers in other apps on the same device, have discovered...

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600 million Samsung Galaxy devices vulnerable to hackers

Samsung Galaxy owners beware: Researchers at a cybersecurity firm discovered that every Galaxy device from the S3 through the S6 contains a massive security vulnerability in its keyboard software that hackers could easily exploit in order to spy on you.

Researchers at the security firm NowSecure say they discovered the flaw and first told Samsung about it in November, and went going public with the information this week, seven months later, only because Samsung has continued to not-address the issue.

As NowSecure posted on its security blog:

A remote attacker capable of controlling a user’s network traffic can manipulate the keyboard update mechanism on Samsung phones and execute code as a privileged (system) user on the target’s phone. This can be exploited in a a manner that requires no user interaction — a user does not have to explicitly choose to download a languagePack update to be exploited.

The Swift keyboard comes pre-installed on Samsung devices and cannot be disabled or uninstalled. Even when it is not used as the default keyboard, it can still be exploited. It's estimated that 600 million Samsung Galaxy devices are at risk.

So this security vulnerability is in a program that comes pre-installed on every Samsung Galaxy device, cannot be un-installed, and leaves you vulnerable even if you never use it.

Exploit in action

NowSecure also posted a YouTube video showing the exploit in action, and pointed out: “It can be seen that no user interaction is required other than connecting to a network, opening the keyboard, and rebooting the device.”

NowSecure's CEO, Andrew Hoog, said that on a 10-point rating scale, with 10 being the worst possibly cybersecurity vulnerability, this one rates about 8.3.

Hackers would definitely be able to take advantage of this exploit to hijack a mobile device connected to an insecure or public wi-fi network, but researchers say users also might be vulnerable even when they're on cell phone networks.

Ordinary Samsung Galaxy owners aren't the only ones at risk here, of course; last autumn the National Security Agency officially approved Samsung Knox devices for official government use.

Samsung, for its part, released a statement to reporters saying that it “takes emerging security threats very seriously... and [is] committed to providing the latest in mobile security,” and of course intends to patch the hole in its mobile device security very soon now.

Samsung Galaxy owners beware: Researchers at a cybersecurity firm discovered that every Galaxy device from the S3 through the S6 contains a massive securit...

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FCC beefs up consumer protections against robocalls, auto-dialers and spam texts

That constantly ringing telephone may finally fall silent for at least a few minutes. The Federal Communications Commission has adopted new rules intended to protect consumers against unwanted robocalls and spam texts, affirming that consumers have a right to control the calls they receive.

The Commission also made clear that telephone companies face no legal barriers to allowing consumers to choose to use robocall-blocking technology, something consumer groups have been seeking for a long time.

 “We are especially pleased that the FCC has provided a “Green Light for ‘Do Not Disturb’ Technology,” which will enable wireless and landline carriers to offer robocall-blocking technologies to consumers, noted Delara Derakhshani, counsel with Consumers Union.

The rulings are the result of thousands of consumer complaints about robocalls that have been pouring into the FCC every month. Complaints related to unwanted calls are the largest category of complaints received by the Commission, numbering more than 215,000 in 2014.

“We applaud the FCC for holding the line to keep the plague of unwanted robocalls from becoming even worse,” added Susan Grant, director of Consumer Protection and Privacy at Consumer Federation of America. “Since the FCC has now clarified that telephone companies can block these types of calls, we expect the companies to act quickly to implement blocking options for their customers.” 

Today’s action addresses almost two dozen petitions and other requests that sought clarity on how the Commission interprets the Telephone Consumer Protection Act (TCPA), closing loopholes and strengthening consumer protections already on the books.

The TCPA requires prior express consent for non-emergency autodialed, prerecorded, or artificial voice calls to wireless phone numbers, as well as for prerecorded telemarketing calls to residential wireline numbers.

Landline and wireless protections

Highlights for consumers who use either landline or wireless phones include:

Green Light for ‘Do Not Disturb’ Technology – Service providers can offer robocall-blocking technologies to consumers and implement market-based solutions that consumers can use to stop unwanted robocalls.

Empowering Consumers to Say ‘Stop’ – Consumers have the right to revoke their consent to receive robocalls and robotexts in any reasonable way at any time.

Reassigned Numbers Aren’t Loopholes – If a phone number has been reassigned, companies must stop calling the number after one call.

Third-Party Consent – A consumer whose name is in the contacts list of an acquaintance’s phone does not consent to receive robocalls from third-party applications downloaded by the acquaintance.

Wireless protections

Additional highlights for wireless consumers include:

Affirming the Law’s Definition of Autodialer – “Autodialer” is defined as any technology with the capacity to dial random or sequential numbers. This definition ensures that robocallers cannot skirt consumer consent requirements through changes in calling technology design or by calling from a list of numbers.

Text Messages as Calls – The Commission reaffirmed that consumers are entitled to the same consent-based protections for texts as they are for voice calls to wireless numbers.

Internet-to-Phone Text Messages – Equipment used to send Internet-to-phone text messages is an autodialer, so the caller must have consumer consent before calling.

Very Limited and Specific Exemptions for Urgent Circumstances – Free calls or texts to alert consumers to possible fraud on their bank accounts or remind them of important medication refills, among other financial alerts or healthcare messages, are allowed without prior consent, but other types of financial or healthcare calls, such as marketing or debt collection calls, are not allowed under these limited and very specific exemptions. Also, consumers have the right to opt out from these permitted calls and texts at any time.

Today’s actions make no changes to the Do-Not-Call Registry, which restricts unwanted telemarketing calls, but are intended to build on the registry’s effectiveness by closing loopholes and ensuring that consumers are fully protected from unwanted calls, including those not covered by the registry.

That constantly ringing telephone may finally fall silent for at least a few minutes. The Federal Communications Commission has adopted new rules intended ...

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AT&T fined $100 million for throttling “unlimited data” connections

A record-breaking $100 million fine has been levied against AT&T; for throttling the connections of its “unlimited data” customers (although AT&T; has said it intends to fight the fine in court).

AT&T; started throttling its “unlimited” customers' connections in 2011, ultimately affecting millions of its customers, according to the Federal Communications Commission.

What exactly is “data throttling,” and why would AT&T; inflict it on “unlimited data” customers? To make an analogy: imagine you paid for an “all you can eat” buffet promising “unlimited” amounts of food. But there's a catch. Turns out that, after you finish your first full plate of food, your buffet connection is henceforth “throttled” so you're required to eat far more slowly than people usually do: anytime you swallow a mouthful of food, you have to wait a full minute before you're allowed to take another bite, and after cleaning your plate you must wait ten minutes before going back for a refill. So in theory, you can eat all the food you want, but in practice you can't even enjoy an ordinary-sized meal under such restrictive conditions.

That's essentially what AT&T; has done to its mobile customers, only restricting data rather than food. Last October, the Federal Trade Commission sued AT&T; for its data-throttling practices, claiming that some smartphone customers with unlimited data plans had their data speeds reduced by as much as 90%. The FTC alleged that AT&T; began throttling data speeds in 2011 for its unlimited data plan customers after they used as little as 2 gigabytes of data in a billing period.

And in March, a federal judge rejected AT&T;'s attempt to hide behind common-carrier exemptions to avoid the FTC's lawsuit.

It is true that sometimes, when networks are congested from heavy use, a certain level of throttling (especially against the heaviest data users) genuinely is necessary to keep the network running smoothly for all.

On a related note, that's why when hurricanes, major earthquakes or other natural disasters damage infrastructure and knock out utilities over a wide region, cell phone and smartphone users are asked to use light-bandwidth text messages rather than heavy-bandwidth voice or video calls to keep in contact with friends and family.

Should you ever have the bad luck to find yourself in a literal disaster area someday, don't be surprised to discover that everybody's wireless connections have been throttled so that streaming video and other data-heavy online activity is impossible for the duration.

Revenue enhancement

But that's not what AT&T; has allegedly been doing. Long before the FTC filed its lawsuit, AT&T;'s critics have claimed that the company uses data throttling not for network management reasons but for revenue enhancement — and pointed to the company's own advertised pricing policies as evidence.

For example: in January 2014, AT&T; launched its then-new “Sponsored Data” program, which it said would shift “mobile data costs from the consumer to the content provider.” (In other words, websites would have to pay in order to ensure AT&T; mobile visitors could access them in a timely fashion, in complete opposition to proposed “net neutrality” rules.)

At the time, TechDirt called the program “an admission that data caps have nothing to do with congestion.”

Today, in its press release announcing the $100 million fine, the Federal Communications Commission explained that:

AT&T; began offering unlimited data plans in 2007, allowing customers to use unrestricted amounts of data. Although the company no longer offers unlimited plans to new customers, it allows current unlimited customers to renew their plans and has sold millions of existing unlimited customers new term contracts for data plans that continue to be labeled as “unlimited”.


In 2011, AT&T; implemented a “Maximum Bit Rate” policy and capped the maximum data speeds for unlimited customers after they used a set amount of data within a billing cycle. The capped speeds were much slower than the normal network speeds AT&T; advertised and significantly impaired the ability of AT&T; customers to access the Internet or use data applications for the remainder of the billing cycle.

Locked in

Consumers rate AT&T; Wireless

Adding insult to injury, the FCC also said that “Consumers also complained about being locked into a long-term AT&T; contract, subject to early termination fees, for an unlimited data plan that wasn’t actually unlimited.”

So AT&T; not only sold an unlimited data plan that actually had strict secret limits, it penalized customers who then tried to get out after learning that AT&T; wasn't upholding its end of the promised bargain.

To return to the all-you-can eat buffet analogy, this is like locking customers in the restaurant and forcing them to slowly eat all of their meals there.

AT&T;, for its part, says it will “vigorously dispute the FCC’s assertions.” The company is also implying that its data throttling practice is actually legitimate network management (akin to throttling video in a storm zone). As The Verge noted:

[AT&T;] argues that the commission has "identified this practice as a legitimate and reasonable way to manage network resources," although that's sort of ignoring what the FCC is actually saying. The commission isn't taking issue with AT&T;'s throttling for the purpose of "reasonable network management," it's taking issue with AT&T; throttling customers indiscriminately because they've used a lot of data.

Trick or treat

And it's alleged that AT&T;'s own behavior strongly supports the FCC's claim. Last September, for example, AT&T; offered a then-new promotion slated to run through Halloween: new customers who signed up for AT&T;'s “Mobile Share Value Plan” before Halloween would get double the data limits of ordinary mobile customers. At the time, the standard Mobile Share Value Plan offered customers 15 gigabytes (GB) of data per billing period, whereas new customers who signed up before Oct. 31 were offered 30 GB per billing period.

Meanwhile, customers with “unlimited” data plans had their connections throttled after only 5 GB per bill period. To recap: AT&T; users with unlimited data plans got throttled after only 5GB, whereas “ordinary” new customers got at least 15GB unless they signed on during that special Halloween promotion in which case they got 30GB – six times what “unlimited” data users enjoyed before throttling. And that was with the smallest data plan; AT&T; offered another with a whopping 100GB of shared data – for $375 per month.

Yet the same company that can provide up to 100 gigabytes of shared data to certain customers also claimed that “network management” obligates it to throttle any unlimited data user who shares a mere 5 gigabytes of data. That's how math works at AT&T; company HQ: 5GB from an “unlimited” plan causes more congestion than a 100GB limit, and putting strict limits on unlimited data.

Still, AT&T; said, in response to the FCC's latest fine, that “The FCC has specifically identified this practice [data throttling] as a legitimate and reasonable way to manage network resources for the benefit of all customers, and has known for years that all of the major carriers use it …. We have been fully transparent with our customers, providing notice in multiple ways and going well beyond the FCC’s disclosure requirements.”

Photo © v.poth - FotoliaA record-breaking $100 million fine has been levied against AT&T for throttling the connections of its “unlimited data” custo...

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Health apps -- healthful or a health threat?

Health and wellness have never been easier to manage than in the current age of technology. Information is now easily accessible, and there are a wealth of services that consumers can take advantage of to reach their fitness goals.

In particular, "health apps” have become increasingly popular. The question is, just how beneficial are these apps?

Many argue that health apps inspire people to adapt healthier lifestyles and stay committed to their health goals. They are extremely simple to access through smartphones and other devices that people use every day.

Iltifat Husain, editor of iMedicalApps.com, and assistant professor of emergency medicine at the Wake Forest School of Medicine, argues that the apps have great potential “to reduce morbidity and mortality.” He admits that there is not much research to support health app use, but that “doctors should not wait for scientific studies to prove benefits because these have already been shown.”

For example, Sylvia Warman, an office worker from London, believes that her health app has improved her life dramatically. She points out how much easier these apps make it to track her progress and adjust her lifestyle. She claims that her app has made her more conscious of her everyday choices. She is more active as a result, and has even improved her diet.

Too many choices

Despite these positive testimonials, there are some drawbacks to using these health apps. Because of the number of apps that have been produced, it is difficult to separate useful ones from those that are ineffective.

Des Spence, a general practitioner, argues that most health apps are “mostly harmless and likely useless,” but he cautions that there is another more serious danger associated with them -- they can play on the fears of “an unhealthily health obsessed generation.”

Spence points out that certain medical technologies, such as MRI’s and blood tests, are already overused. He believes that all of this extra technology leads to over-diagnosis which can “ignite extreme anxiety” and cause serious medical harm.

Whatever your opinion may be on the growth of these technologies, they will inevitably continue to progress. Luckily, the level to which they are utilized is still entirely up to the consumer.

Health and wellness have never been easier to manage than in the current age of technology. Information is now easily accessible, and there are a wealth of...

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Consumer groups slam Google's YouTube Kids app

Consumer groups are calling for a federal investigation of Google, saying its new YouTube Kids app preys upon children's vulnerability and violates longstanding media practices intended to safeguard children.

“There is nothing 'child friendly' about an app that obliterates long-standing principles designed to protect kids from commercialism,” said Josh Golin, Associate Director of Campaign for a Commercial-Free Childhood, one of the groups filing a complaint with the Federal Trade Commission.

“YouTube Kids exploits children’s developmental vulnerabilities by delivering a steady stream of advertising that masquerades as programming," Golin said. "Furthermore, YouTube Kids' advertising policy is incredibly deceptive. To cite just one example, Google claims it doesn't accept food and beverage ads but McDonald's actually has its own channel and the 'content' includes actual Happy Meal commercials.”

Among the specific practices identified in the complaint are:

  • Intermixing advertising and programming in ways that deceive young children, who, unlike adults, lack the cognitive ability to distinguish between the two;
  • Featuring numerous “branded channels” for McDonald’s, Barbie, Fisher-Price, and other companies, which are little more than program-length commercials;
  • Distributing so-called “user-generated” segments that feature toys, candy, and other products without disclosing the business relationships that many of the producers of these videos have with the manufacturers of the products, a likely violation of the FTC’s Endorsement Guidelines.

When it launched the YouTube Kids app in February, Google described it as “the first Google product built from the ground up with little ones in mind.”

Safeguards scrapped

But the complaint says Google appears to have ignored not only the scientific research on children’s developmental limitations, but also the well-established system of advertising safeguards that has been in place on both broadcast and cable television for decades.

Those safeguards include

  • a prohibition against the host of a children’s program from delivering commercial messages;
  • strict time limits on the amount of advertising any children’s program can include;
  • the prohibition of program-length commercials; and
  • the banning of “product placements” or “embedded advertisements.”

Such “blending of children’s programming content with advertising material on television,” the group’s complaint declares, “has long been prohibited because it is unfair and deceptive to children. The fact that children are viewing the videos on a tablet or smart phone screen instead of on a television screen does not make it any less unfair and deceptive.” 

"Hyper-commercialized"

“YouTube Kids is the most hyper-commercialized media environment for children I have ever seen,” commented Dale Kunkel, Professor of Communication, University of Arizona. “Many of these advertising tactics are considered illegal on television, and it's sad to see Google trying to get away with using them in digital media.”

Angela J. Campbell of the Institute for Public Representation at Georgetown Law, who serves as counsel to the coalition, called on the FTC to "investigate whether Disney and other marketers are providing secret financial incentives for the creation of videos showing off their products. The FTC’s Endorsement Guides require disclosure of any such relationships so that consumers will not be misled." 

Organizations signing the complaint include: the Center for Digital Democracy, Campaign for a Commercial-Free Childhood, American Academy of Child and Adolescent Psychiatry, Center for Science in the Public Interest, Children Now, Consumer Federation of America, Consumer Watchdog, and Public Citizen.

Consumer groups are calling for a federal investigation of Google, saying its new YouTube Kids app preys upon children's vulnerability and violates longsta...

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Federal judge won't dismiss FTC's “data throttling” lawsuit against AT&T

A federal judge in San Francisco has rejected AT&T's attempt to dismiss a Federal Trade Commission lawsuit charging that the company misled consumers by selling “unlimited” data plans and then throttling data speeds. Specifically, the judge ruled that AT&T cannot hide behind common-carrier exemptions to avoid the lawsuit, as Courthouse News Service reports.

The FTC first filed its suit late last October, alleging that AT&T misled consumers by promising “unlimited” data plans while engaging in data throttling to reduce their data speeds, sometimes by up to 90%.

As its name suggests, “data throttling” is when someone's network connection is deliberately slowed down, or throttled, sometimes to the point where streaming videos and other common online activities become impossible until the throttling stops.

Granted, it's true that sometimes, when networks are congested from heavy use, some level of throttling the heaviest users genuinely is necessary to keep the network running.

Sometimes legit

On a related note, that's why when hurricanes or other natural disasters damage infrastructure and knock out utilities over a wide area, cell phone and smartphone users are asked to use text messages rather than voice or video calls to contact friends and family: because texts use far less bandwidth and are less likely to overwhelm the system.

Should you ever have the misfortune to find yourself in a literal disaster area someday, don't be surprised to discover that everybody's wireless connections have been throttled so that streaming video and other data-heavy online activity is impossible for the duration.

But that's not what AT&T is allegedly doing. Long before the FTC filed its lawsuit, AT&T's critics have claimed that the company uses data throttling not for network management reasons but for revenue enhancement — and pointed to the company's own advertised pricing policies as evidence.

For example: in January 2014, AT&T launched its then-new “Sponsored Data” program, which it said would shift “mobile data costs from the consumer to the content provider.” (In other words, websites would have to pay in order to ensure AT&T mobile visitors could access them in a timely fashion, in complete opposition to proposed “net neutrality” rules.)

At the time, TechDirt called the program “an admission that data caps have nothing to do with congestion.”

"Share Value"

Consumers rate AT&T Wireless

And last September, a month before the FTC filed its data-throttling suit against AT&T, the company ran another promotion called the “Mobile Share Value plan,” which offered to double the data limits of new subscribers who signed up for it. Data throttling isn't used on all AT&T mobile customers, only those who signed up for unlimited data plans before the company stopped offering them.

The FTC's suit alleges that in July 2011, AT&T first started throttling data for customers with unlimited data plans. In densely populated markets such as San Francisco and New York City, “unlimited” plans were actually given 2 gigabyte thresholds, with data speeds capped at only 128 kilobytes per second (kps). The FTC says that AT&T raised the threshold to 3 gigabytes in March 2012, but even with the increase, unlimited data-plan users are on slow networks with top speeds of 256 kps, whereas LTE customers have doubly fast connections at 512 kps.

AT&T's courtroom counter-argument disputed none of this. Instead, the company asked U.S. District Judge Edward Chen to dismiss the suit on the grounds that it fell beyond the FTC's jurisdiction, since AT&T is a “common carrier” according to the Communications Act, which exempts common carriers from FTC oversight (since that jurisdiction goes to the Federal Communications Commission).

Uncommon carrier

The FTC countered that, according to the Communications Act, AT&T does not qualify as a “common carrier” in this instance, because mobile data isn't considered common carrier (the way old-fashioned landline phone connections are). AT&T in turn argued that, since some of its services have common carrier status, all of its services should be considered that way for FTC purposes.

But Judge Chen disagreed with that argument. In the 23-page ruling he released, he noted that “Contrary to what AT&T argues, the common carrier exception applies only where the entity has the status of common carrier and is actually engaging in common carrier activity.”

Chen's ruling also states that:

The gravamen of the FTC's complaint is based on AT&T's failure to disclose its throttling practice to certain customers. More specifically, in Count I, the FTC asserts that AT&T's throttling program is unfair because AT&T 'entered into numerous mobile data contracts that were advertised as providing access to unlimited mobile data, and that do not provide that AT&T may modify, diminish, or impair the service of customers who use more than a specified amount of data for permissible activities.' Thus, the FTC is not arguing in the case at bar that the throttling program is unfair per se; instead it challenges AT&T's failure to disclose the practice to certain customers and afford them alternative options.

Since yesterday's ruling allows the FTC to continue its suit against AT&T, FTC Chairperson Edith Ramirez said that the agency intends to seek refunds on behalf of millions of AT&T's “unlimited” data customers.

A federal judge in San Francisco has rejected AT&T's attempt to dismiss a Federal Trade Commission lawsuit charging that the company misled consumers by se...

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Almost half of all Android OS devices vulnerable to “Android Installer Hijacking”

Bad news for Android phone users: security researchers at Palo Alto Networks have discovered a vulnerability they've dubbed “Android Installer Hijacking” in Google's Android operating systems, and even after the release of a security patch almost half of all Android handsets remain vulnerable to it.

The vulnerability seems to apply when you either download apps from third-party app stores, or click on ads from a mobile advertisement library. If you have an Android OS but have only ever downloaded apps from the official Google Play store, it appears you have nothing to worry about, at least where this particular threat is concerned.

According to Palo Alto researcher Zhi Xu, the vulnerability has been patched in Android versions 4.3_r0.9 and later, but devices with Android 4.3 remain vulnerable – which corresponds to roughly 49.9 percent of currently monitored handsets, according to Google estimates.

Xu wrote that Android Installer Hijacking is essentially a Time-Of-Check To Time-Of-Use vulnerability (TOCTTOU, pronounced “Tock Too”), which “allows an attacker to modify or replace a seemingly benign Android app with malware, without user knowledge.”

Switcharoo

TOCTTOU is basically the malware version of what pre-computer con artists might've called “the old switcharoo.” Basically, before an app can be installed, it must pass the permissions process: your phone's security program inspects the file to make sure it's valid. And it is, so the app gets permission to be installed on your device – except that in the nanosecond between “granting permission to the file” and “installing it,” TOCTTOU lets the hacker pull the old switcharoo, replacing the valid permission-granted file for a invalid and malware-riddled one.

So what happens if your phone falls for this particular TOCTTOU? Your standard malware-infection problems – in this instance, “full access to a compromised device, including usernames, passwords, and sensitive data,” according to Palo Alto.

If you have a device with an Android OS, and you've downloaded third-party apps (as opposed to apps acquired through the Google Play store), Palo Alto released a vulnerability scanner app in the Google Play store, and posted a tutorial video for it here.

Bad news for Android phone users: security researchers at Palo Alto Networks have discovered a vulnerability they've dubbed “Android Installer Hijacking” i...

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Proliferation of smartphones may be affecting posture

You see it every day. People standing, sitting or even walking with head bent, fingers flying across the screen of a smartphone or tablet. These devices that have become a fixture in everyday life may be damaging people's health in unexpected ways.

The potential damage is to the spine. Bending your neck to look at the screen is what's doing the damage. Research suggests that pressure on the spine doubles with each inch you bend your head.

Unfortunately, many of us bend our heads a lot and for extended periods. Kenneth Hansraj, chief of spine surgery at New York Spine Surgery & Rehabilitation Medicine, says smartphone users spend an average of 2 to 4 hours per day hunched over mobile devices.

Lasting impact

It's no surprise that back and neck pain have increased among users of electronic gadgets, and the effects may not go away quickly.

"Poor posture is easy to spot in the hunched over forms of older adults who have carried bad habits for a lifetime," said Stephen Gubernick, Doctor of Chiropractic at The Joint Chiropractic. "However, few people realize that there are health implications that make good posture essential for healthy living at any age."

Gubernick says a misalignment of the spine can affect overall health and well-being. Your spine provides protection to the nervous system, which in turn controls and coordinates all the different functions of your body.

When there is a disruption in the nerve communication to organs and tissues, messages may be scrambled resulting in abnormal function.

What to do

Poor device posture can be corrected by not using your smartphone so much – but let's be real, is that really likely to happen? So it might be wise to change the way we hold the device.

In the case of a smartphone, hold the phone higher, closer to eye level, so that you don't have to bend your head. It's important for parents to encourage children to improve their device posture, since their bodies are still developing.

Back pain is normally a complaint among older people but a 2013 survey in the United Kingdom found a startling 84% of young people said they have suffered an aching back in the previous year. The survey by Simplyhealth also found most adults of all ages spent as much time hunched over a device of some sort as they spent sleeping.

Important to health

In fact, good posture may be a little-appreciated contributor to long-term good health. The Cleveland Clinic advises training your body to stand, walk, sit and lie in positions where the least strain is placed on supporting muscles and ligaments during movement or weight-bearing activities.

It keeps bones and joints in the correct alignment so that muscles are being used properly, helps decrease the abnormal wearing of joint surfaces that could result in arthritis and decreases the stress on the ligaments holding the joints of the spine together.

You see it every day. People standing, sitting or even walking with head bent, fingers flying across the screen of a smartphone or tablet. These devices th...

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ACLU documents reveal police use of secret cell phone tracking program

The American Civil Liberties Union has released records it had obtained via Freedom of Information requests from police agencies across the state of Florida, detailing widespread law enforcement use of surveillance technology kept secret not only from ordinary American citizens, but from judges and the court system, too.

This secrecy is allegedly justified in the name of “national security” although, as the ACLU notes in the records it released yesterday, a detailed list of over 250 investigations from just one city's police department showed not a single case related to national security.

And although yesterday's ACLU investigation only looked at Florida, state and local law enforcement agencies in at least 20 states and Washington D.C. use this secret surveillance technology.

It's called Stingray, and its tracks people's whereabouts (more specifically, it tracks the whereabouts of people's phones) though the use of devices called “cell site simulators.” As the label suggests, such devices simulate cell phone towers in a way that forces cell phones in the area to broadcast information which can be used to locate and identify them.

How extensively does law enforcement use this program? The ACLU notes that Florida alone has spent more than $3 million on Stingrays and related equipment since 2008.

“The documents paint a detailed picture of police using an invasive technology — one that can follow you inside your house — in many hundreds of cases and almost entirely in secret.

“The secrecy is not just from the public, but often from judges who are supposed to ensure that police are not abusing their authority. Partly relying on that secrecy, police have been getting authorization to use Stingrays based on the low standard of “relevance,” not a warrant based on probable cause as required by the Fourth Amendment.”

Little oversight

In other words, police keep information about this program secret not only from the public they presumably serve, but from the judges who presumably are supposed to oversee those police to ensure their behavior stays within legal and constitutional guidelines.

Indeed, authorities would sooner let an armed robber avoid jail than reveal any details of how they use Stingray. On the same day the ACLU released its records about Stingray use in Florida, the Washington Post ran a story (based in part on the ACLU's revelations) illustrating that:

[Tadrae McKenzie] and two buddies robbed a small-time pot dealer of $130 worth of weed using BB guns. Under Florida law, that was robbery with a deadly weapon, with a sentence of at least four years in prison. But before trial, his defense team detected investigators’ use of a secret surveillance tool. ... In an unprecedented move, a state judge ordered the police to show the device — a cell-tower simulator sometimes called a StingRay — to the attorneys. Rather than show the equipment, the state offered McKenzie a plea bargain.

McKenzie took the plea: six month's probation, no jailtime.

Even elected officials are unable to learn details about the program. Last December, the Star-Tribune in Minneapolis ran an expose about a then-two-year-old agreement between the Minnesota Bureau of Criminal Apprehension (BCA) and the FBI to keep information about the tracking program secret from the public:

“The revelation comes after a lengthy attempt to obtain contracts and nondisclosure agreements for the FBI’s cellphone tracking devices, known as StingRay II and KingFish. The state Bureau of Criminal Apprehension (BCA) has long resisted disclosure requests from the public, news media and even the Minnesota Legislature, saying that doing so would violate trade secrets and expose investigative techniques that could be exploited by criminals.....”

The “trade secrets” mentioned belong to Harris Corp., the Florida-based company that manufactures the StingRay and similar cell phone tracking devices. There's a lot of money at stake; a single StingRay sells for anywhere from $68,000 to $134,000, according to Department of Justice documents quoted by the Washington Post.

The ACLU's records show that one Stingray customer, the city of Tallahasee, went on to use its Stingrays in 250 investigations over the six years spanning mid-2007 to early in 2014. As the Post noted, “That’s 40 or so instances a year in a city of 186,000, a surprisingly high rate given that the StingRay’s manufacturer, Harris Corp., has told the Federal Communications Commission that the device is used only in emergencies.”

The ACLU's records also show that police have not been obtaining warrants before using these cell phone trackers to determine peoples' locations. The full Florida Stingray records collected by the ACLU are available online here.

The American Civil Liberties Union has released records it had obtained via Freedom of Information requests from police agencies across the state of Florid...

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Free at last: Cell phones can be "unlocked"

It's been a long time coming but effective tomorrow, Wednesday, Feb. 11, 2015, if you own your cell phone outright you can move from one carrier to another.

That sounds pretty simple but it has taken a long time and a lot of wrangling by regulators, wireless carriers and their lobbying organization. There are also lots of conditions that apply.

What do we mean by unlocking? Cell phones and wireless devices like tablets have traditionally been "locked" so that consumers are tied to their carrier for the term of their contract.

But now, if you now have a phone on -- let's say -- the Verizon network, you can switch to AT&T, T-Mobile, Sprint or any of a number of others.

That's assuming that you have paid for your phone and fulfilled your contract. Chances are you haven't, since most smartphones -- which cost hundreds of dollars -- are owned by the wireless carrier until you have lived out your contract, typically two or three years long.

There also some plans, like Verizon's Edge, that let you buy your phone on the installment plan. To switch carriers, you must have paid off the full amount due on that plan.

If you haven't met these conditions and are just dying to switch carriers anyway, you will have to pay an early termination fee (ETF), typically a few hundred dollars. (You may want to think twice about this. You don't want to go to a lot of trouble and expense dumping Carrier A only to find that other carriers don't work well in your location either, a not uncommon condition).

It's also possible that you bought an "unlocked" phone, which puts you that much closer to being able to wave good-bye to your current carrier. Many BlackBerry fans, for example, have bought the new Passport and Classic phones outright, since they are not yet being offered by the major carriers.

Next step

So assuming you have met all those conditions mentioned above, what's next? First, make sure your carrier has agreed to the new unlocking rules. This new procedure is not a law, it's just a statement of principles incorporated into the "Consumer Code for Wireless Services" that major carriers have agreed to follow. 

At the moment, carriers signed on to the code are:

Each of these carriers will, if history is any guide, have its own procedures and requirements and will probably try to persuade you to hang around, so the process may vary slightly. You can call the customer service line and take your chances or go to your carrier's website using the links above and carefully read through the posted procedures before taking the next step.

Some carriers may require you to go to one of their stores to have your device unlocked. Others will be able to do it remotely. It may take a day or two, so be patient.

The carriers have agreed not to charge a fee for unlocking.

Prepaid phones are also eligible for unlocking within one year of activation, assuming you have been up to date on payments.

Network types

Nothing is ever simple in the wireless universe and this is no exception. Agreements and regulations aside, there are several different types of wireless networks -- primarily GSM, LTE and CDMA -- and not all devices are compatible with all network types.

Most newer phones will work on the most common networks, with many Sprint phones being the exception. 

The FCC has prepared a guide to unlocking and an unlocking FAQ. Check them out for more details. 

It's been a long time coming but effective tomorrow, Wednesday, Feb. 11, 2015, if you own your cell phone outright you can move from one carrier to another...

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Cellphones are top security threat in prisons, North Carolina jailers say

Marriott and other hotel chains have given up, at least for now, on their attempts to block personal wi-fi hotspots after learning the hard way, through a stiff fine in Marriott's case, that blocking lawful wireless communications is illegal.

But are there times when there should be an exception? Prison officials would like to be able to block cell phone transmissions but are running into the same legal roadblocks as the hotels despite the deadly security threat they say cell phones pose.

The Federal Communications Commission (FCC) says it has made it a "top priority" to end illegal cell phone and wireless use in prisons but says that existing cell phone blockers are not only illegal but impractical for institutions as large as a modern prison.

The FCC says it is working with state corrections departments to develop new technology. State officials say an answer can't come too soon.

"It's a constant security issue we're facing on a daily basis," said Kenneth Lassiter, deputy director for operations for the North Carolina prison system, in a report aired by WNCN-TV

Cell phones are the No. 1 security threat in the state's prisons, Lassier said. They're smuggled in by the hundreds and used to arrange drug deals, escape attempts and criminal activities by inmates' associates who are still on the outside.

"One cell phone is too many cell phones," Lassiter emphasized to WNCN, which reported that in 2005 only about 30 or so phones were confiscated in prisons across the state, but by 2012 that number jumped up to more than 850.

Inmate Facebook pages

It's not just cell phones. In Tennessee, WSMV-TV found more than 100 inmates operating their own Facebook pages, displaying photos and videos of drugs, cash and parties while they are behind bars, even though inmates aren't supposed to have Internet access.

The photos and videos show inmates claiming to be using drugs, smoking, hoarding snacks, giving each other tattoos, and in one photograph, burning clothes inside a cell.

"Anyone who sees those videos, they're going to be sickened by it. They're going to be angry," said Verna Wyatt, executive director of Tennessee Voices for Victims, an advocacy group for crime victims.

In North Carolina, WNCN reported that convicted murderer Rivera Peoples posted pictures and video, showing off the contraband iPhone he somehow got in prison to operate his Facebook page.

In one video an inmate sitting beside Peoples in the prison yard can he heard saying, "I believe I'm smoking better than everybody."

The video shows the inmate asking people how much money Peoples has collected while in prison. Peoples responds, "I'm a thousand, definitely a thousand."

"Call capture" solutions

Rather than trying to block -- or "jam" -- cell phone transmissions from prison, the FCC says it is working on "call capture" solutions, which rely on cell base stations to capture and block calls to and from numbers known to be associated with imprisoned inmates.

Whether or not that solution is superior to cell jamming is irrelevant, the FCC says, since it does not have the authority to waive laws prohibiting cell jamming. Congress would have to amend existing law to make that permissible.

The FCC also argues that jamming all cell phones near and inside a prison would block access to 911 and other essential services by prison staff, visitors and others.

Also, the FCC says jammers can interfere with other communications devices.

"State communications officials have expressed concern about jammers bleeding interference outside the prison and disrupting police and firefighter frequencies which are close to cell phone frequencies, the FCC said in a position paper

While the issue is debated, business proceeds as usual on cellblocks across the country. 

Marriott and other hotel chains have given up, at least for now, on their attempts to block personal wi-fi hotspots after learning the hard way that blocki...

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Verizon dumps California, Texas, Florida wireline, FiOS business

Good-bye, Verizon. Hello, Frontier. That's the message today for millions of telephone and Internet customers in three of the nation's biggest states -- California, Texas and Florida.

Verizon is casting off its terrestrial services in those states, raising $10 billion that it can spend on its wireless -- you know, cell phone -- business, which is growing much faster and doesn't require stringing and maintaining all that nasty wire and fiber optic cable.

This is turning into a habit for Verizon. It has cast off quite a bit of its wireline business in recent years, with Frontier picking up the pieces. Or at least most of them.

Customers in Connecticut recently went through a similar transition when AT&T abandoned them to Frontier. How's that been working out? Well, here's what Constance of Roxbury, Conn., had to say in a recent ConsumerAffairs review

"We always had good service with AT&T and then they sold our telephone/voicemail service to a company called Frontier. What a disgrace -- this new company and the customer service," she said, complaining of problems with her Caller ID and voicemail. "Trying repeatedly to call Frontier Customer Service and they say they will put in a complaint; however, cannot assist me at this time."

Constant interruptions

Kathy of Putnam, Conn., is equally unhappy with the turn her Internet service ha taken.

"I was switched over to Frontier from AT&T after a buyout. This was in November 2014. My Internet service was horrible from the day of the switch. Constant interruptions and then no service at all," she said. "I called and stayed on hold for at least 40 minutes. I was initially told I needed a new modem, and that they would ship it "immediately". A week later still no modem but a bill showed up!"

This, of course, is not quite the way Verizon tells it.

“Our long-standing strategy has been to consistently invest in our networks, improve our customers’ experience, and develop new products and services while delivering profitable growth," said Verizon CEO Lowell McAdam. "These transactions will further strengthen Verizon’s focus on extending our industry leadership position in our core markets and return significant value to our shareholders.”

You might think that California, Texas and Florida would be "core markets," but maybe not.  

"Selling wireline operations in California, Florida and Texas to Frontier will concentrate Verizon’s wireline operations on the East Coast. Verizon will focus on further penetrating the market for its FiOS business across a contiguous footprint in Eastern states," the Verizon announcement of the deal said. That means the Washington-Boston corridor, apparently.

In other words, it shrinks Verizon back to its roots. The company started out as Nynex after the 1982 AT&T divestiture. Its current footprint closely resembles Nynyx and BellAtlantic, the old D.C.-area "Baby Bell."

The operations Frontier will acquire consist of all of Verizon’s local wireline operating territories in California, Florida and Texas, including about 3.7 million voice connections, 2.2 million high-speed data customers, including approximately 1.6 million FiOS Internet customers.

Good-bye, Verizon. Hello, Frontier. That's the message today for millions of telephone and Internet customers in three of the nation's biggest states -- Ca...

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New smartphone app records police and uploads video to the Internet, automatically

Here's a couple of unpleasant facts about modern American life: one, the government is spying on you. That's not even a secret: the Drug Enforcement Administration (alongside several state-level police forces) openly admits to tracking and recording the license plates of all motorists on American highways, the better to know where you've been and who you've been there with.

Meanwhile, various other branches of government including the National Security Agency monitor (spy upon) American's electronic communications, and the current FBI director actually said it should be illegal for Americans to encrypt their own personal communications, because encryption makes it harder for the government to monitor your communications without your knowledge.

Also, America's criminal justice system operates under the de facto rule, “If a police officer says one thing and any number of non-police say something else, always assume the cop is telling the truth unless there is recorded evidence proving otherwise.”

Fortunately, cheap and ubiquitous recording technology increases the odds that innocent people will be able to prove their innocence despite police testimony to the contrary.

In 2011, to offer just one example, then-19-year-old Los Angeles resident David Gipson was arrested and charged with illegal gun possession. Arresting officer Deputy Levi Belville testified that he saw Gipson running away from police before tossing a loaded gun onto the roof of a nearby building.

Fortunately for Gipson, it turned out that a non-police witness had taken a cell phone video of the entire encounter, and the video showed that Deputy Belville was, let's say, mistaken: Gipson was standing still and leaning against a wall when officers first saw him, never had a gun and never threw anything onto a rooftop, either.

A jury acquitted Gipson of all charges, and in May 2013 he filed a civil rights suit against Belville and the city.

Getting around the problem

So cell phone videos can definitely help protect the innocent — unless the police know about them, and delete the recording. But a new smartphone app called Hands Up 4 Justice offers a way around that problem.

Hands Up is the invention of Duncan Kirkwood, a native of Montgomery, Alabama, who first came up with the idea after a police officer pulled him over last last year.

“As a black man, I am always fearful that when the police pull me over the encounter could escalate and I could be severely injured and there would be no way to prove I was not at fault,” Kirkwood said to AL.com.

He expanded upon that theme a couple days later, chatting with Fusion.net:

“You know, I’m a black man who grew up in the inner city. I know that when the police pull you over it’s probably gonna be a bad day …. I realized that I should not have to be afraid of the police. If I break a traffic law, I should get a ticket and that’s it. I shouldn’t have to be worried about getting dragged out of the vehicle, being shot, getting tased, and just having the officer’s word against mine.”

But he's American, so he does have to worry about it. And using his smartphone to record the encounter wouldn't necessarily work, because “I saw videos online of police taking people’s phones, and I even saw a video of police smashing someone’s phone.”

Uploaded to the cloud

That's why Kirkwood got the idea of creating an app to record police without their knowledge — and upload video to the Internet before they can delete it.

Here's how it works, according to the Hands Up website: first, open accounts with YouTube and/or Dropbox, for posting those videos as necessary. You should also choose a trusted friend or relative to be your emergency contact; anytime the app is activated your emergency contact will get a text message alert.

If you're pulled over by a police officer, what happens next?

Once pulled over by a police officer, turn on the app, click front facing camera and begin recording. The best position for this is to place the phone on the dashboard between the windshield and middle of dashboard with a slight tilt towards the driver's side window. By using the forward facing camera you can see that the camera is positioned correctly right before the screen goes black. …

After the app is turned on, the screen will go black within 10 seconds, even though the app is still recording and uploading video. The app costs 99 cents, and is currently available for download onto Android phones. An iPhone version of the app is expected to come out soon.

Here's a couple of unpleasant facts about modern American life: one, the government is spying on you. That's not even a secret: the Drug Enforcement Admini...

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FTC fines TracFone $40 million for data throttling on "unlimited" plans

The Federal Trade Commission fined TracFone $40 million today for selling customers “unlimited” data service, then throttling data speeds when the customers reached a certain limit within a pay period.

If you had a Straight Talk, Net10, Simple Mobile, or Telcel America unlimited data plan anytime before now, you can file a claim with the FTC's website here, to see if you qualify for a refund.

The FTC's complaint, available here in .pdf form, says that since 2009, TracFone advertised a prepaid mobile data servce advertising “unlimited talk, text and data” for about $45 per month, but then throttled or even suspended millions of customers' mobile data services after they exceeded whatever limit TracFone was actually imposing on them. The FTC says:

TracFone failed to disclose or adequately disclose its practice of enforcing fixed limits on the amount of mobile data service its customers could use in a thirty-day service period. In fact, until at least September 2013, TracFone did not state in most of its advertising or terms and conditions that it would suspend or throttle its customers’ mobile data service if they used more than a fixed amount of mobile data in a thirty-day service period. In September 2013, TracFone began to include this information for all of its “unlimited” offerings, but often has tucked it away in small print.

In other words, those TracFone ads promising “unlimited” data made no mention of data throttling whatsoever until Sept. 2013, and even then, the throttling was hidden in the small print, where it wouldn't contradict the ad's main claim of “unlimited” data.

Furthermore, the FTC says, TracFone's data throttling activities were not done to relieve network congestion or for any other technical reason, but solely to “reduce the high costs associated” with delivering unlimited data as it pormised.

TracFone is not the only company which the FTC has sued over throttling “unlimited” data plans; the FTC filed suit against AT&T last October, but that case is still in litigation.

The Federal Trade Commission fined TracFone $40 million today for selling customers “unlimited” data service, then throttling data speeds when the customer...

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Problem: genuine AT&T texts look too much like phishing bait

AT&T customers beware: you're far more vulnerable to phishing scams than customers of other companies, thanks to AT&T's text protocols – or the lack thereof.

“Phishing” scams are those where scammers trick their victims into revealing personal or financial information by sending email or text messages that appear to be from legitimate companies. For example, you might get a text message which at first glance appears to be from your bank, warning you of non-existent problems with your account – problems which can supposedly be solved if you give your passwords, account numbers or other important information to the scammer who sent you the text.

The one good thing about phishing scams is that usually, those scammy come-on texts or emails are pretty easy to spot, if you know what to look for. But you can't necessarily do that with AT&T because, as computer programmer Dani Grant discovered this week: “Texts from AT&T are easy to spoof.”

Basically, text messages that legitimately come from AT&T look disturbingly like fake phishing messages – and at the same time, hackers can very easily create fake AT&T texts that look disturbingly like the real thing. Grant herself could do so with ease.

Phishing attempts

Most “protect yourself from scams” articles (including those you'll see here at ConsumerAffairs) will tell you that one way to distinguish between a genuine company missive and a phishing attempt is by looking at web addresses. Last month, for example, we got a fantastically bad email allegedly from FedEx, though it was easy to see that (among other things) the message did not come from @FedEx.com, but a Yahoo webmail address.

Here's a brief quiz, to test your scam-protection savvy: suppose you get a text message allegedly from your phone company, asking you to click on the linked web address dl.mymobilelocate.com in order to set up your phone's mobile-location feature. Do you click on this link, or not?

If you've paid attention to any of the last n thousand “Beware of phishing” articles you've read, you probably answered “Heck no, I wouldn't click on that scammy-looking link! A real link would actually have my mobile carrier's name in it somewhere, right? Verizon.com, ATT.com, something like that.”

That's a good answer! Except it's also the wrong answer, because dl.mymobilelocate.com is AT&T's actual Mobile Locate address.

Nor can you identify a genuine AT&T text from a piece of phishing bait by looking at the address it came from, as Grant explained:

One problem is that AT&T uses a plethora of short codes to send messages so customers have no way to know if messages are actually coming from an AT&T number. They have no way to distinguish which text messages are genuinely from AT&T and which are from phishers. … Customers of AT&T don’t have a good way to know what texts are actually from their cell carrier, making AT&T an easy target to spoof.

Different codes

When Jose Pagliary wrote about Grant's discovery for CNN Money, he pointed out that AT&T isn't the only company to confusingly use different short codes to send out legitimate texts:

Verizon (VZ, Tech30) sends out text messages from a 12-digit number that changes depending on the customer, and it sends links to vzwmobile.com or vzw.com.

T-Mobile sends alerts from a three-digit short code (also different for every user) and links to t-mo.co.

Is there a quick and easy way for mobile customers to distinguish between legitimate texts and phishing bait?

Not really, though Grant does offer a time-consuming option: if you get a text message urging you to call a phone number, you can type it into RetroSleuth to see who owns it – does that “AT&T” number actually belong to AT&T?

But for the most part, fixing this problem lies with the companies who send easy-to-spoof texts. Grant offers them three fix-it suggestions:

The easiest solution is for AT&T to only use URLs that are subdomains or extensions of att.com.

Another possible fix is for AT&T to preload their short codes as phone contacts for AT&T sold devices. That way, customers will know what numbers actually belong to AT&T and which do not.

A third option is for AT&T to communicate through other methods besides text messages. While there is certainly the tradeoff of convenience, emails from @att.com addresses or push notifications through AT&T’s app are alternatives.

Company emails are much, much harder for scammers to convincingly spoof, and an app obviously couldn't be spoofed at all.

AT&T customers beware: you're far more vulnerable to phishing scams than customers of other companies, thanks to AT&T's text protocols – or the lack thereo...

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BlackBerry goes retro with Classic smartphone

In the wake of the iPhone and all the smartphones that followed, BlackBerry was pretty much left for dead. While it once ruled the mobile universe, by 2010 its physical QWERTY keyboard seemed almost quaint.

Is it too early for BlackBerry nostalgia?

Maybe not. The company seems to be counting on those fond memories with the release of its latest phone, the BlackBerry Classic.

The Classic looks a lot like your old BlackBerry that's probably collecting dust in a drawer somewhere. The company calls it “a no-nonsense smartphone built to meet the needs of productive people who appreciate the speed and accuracy that can be found with a physical QWERTY keyboard.”

In truth a lot of business users loved their BlackBerries for the rock-solid email platform and the ease of use. And while it was possible to access the web with these phones, it wasn't really what the phone was designed for.

Inside and out

So the Classic looks like the old Blackberry on the outside, but not on the inside. According to the company its browser is 3 times faster, it has 60% more screen space, 50% longer battery life and a plethora of apps through BlackBerry World and the Amazon Appstore.

“We listened closely to our customers’ feedback to ensure we are delivering the technologies to power them through their day – and that feedback led directly to the development of BlackBerry Classic,” said John Chen, Executive Chairman and CEO at BlackBerry. “BlackBerry Classic is the powerful communications tool that many BlackBerry Bold and Curve users have been waiting for. It’s the secure device that feels familiar in their hands, with the added performance and agility they need to be competitive in today’s busy world.”

Security

Another reason the BlackBerry was prized in the business world was its famously secure operating system, with built-in protection against viruses, tampering and data leaks. Today those attributes may be prized even more in light of increasingly aggressive hackers.

The company says the Classic is “private by default,” protecting users with encrypted email and web browsing.

“This device underscores our commitment to helping BlackBerry users be at their most productive and respond to the demands of business from anywhere, at any time,” said Chen. “By bringing back the trusted functionalities, incorporating our latest operating system and building a speedier browser, our users can feel confident they are using the best communications tool out there.”

Mixed reviews

So far, the reviews are somewhat mixed. Marketwatch.com surveyed industry analysts who, while not dwelling on the technical merits, expressed doubts the Classic, and the previous Passport, would be enough to turn around the company's fortunes.

Technical reviewers have been kinder. One reviewer says that “after more than three years tinkering with its technology, the new device is sure to surprise a lot of followers and nonfollowers.”

In its review, technology site CNET liked the keyboard but said it results in a cramped, small screen.

“If you're willing to trade screen size for a superior physical keyboard, the BlackBerry Classic is a fantastic productivity phone for old-school QWERTY junkies,” it concludes.  

In the wake of the iPhone and all the smartphones that followed, BlackBerry was pretty much left for dead. While it once ruled the mobile universe, by 2010...

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Hotels take aim at wi-fi hotspots

You ever notice how hotels are always a decade or two behind? It wasn't long ago you could put a quarter in the slot and get a massage from your bed. And they're still trying to charge for in-room movies, having not yet gotten wind of the iPad. 

Not long ago, hotels made out like bandits when they began treating their telephone systems as cash machines -- charging guests for making calls and even, worst-case scenario, charging by the minute. Of course, that was just about the time everyone got a cell phone so all those expensive highway-robbery phone systems began gathering dust.

All of this would be weird-old-aunt amusing if it weren't for the latest insidious plot -- blocking personal wi-fi hotspots. Yes, you read that right. Big hotel chains are lusting to install devices that will block your smartphone's ability to work as your own personal broadband hotspots.

Good plan, but illegal

This is, as it should be, illegal at the moment. The Federal Communications Commission (FCC) does not allow unlicensed devices that interfere with lawful communications. But Marriott and other hotel chains are working to change that.

They want the FCC to amend its rules to allow them to block their guests from having any broadband contact with the outside world that doesn't go through them. This might be called the North Korea school of communications policy.

But the tech industry, which is not nearly as keen on lobbying as it it maybe should be, is fighting back. Google and Microsoft are the latest tech giants to sign onto an industry lobbying effort to block the hotels' efforts to block the rest of us from breaking out of the walled gardens the hotels are planting.

Marriott has good reason to want the FCC's rules changed. It was fined $600,000 in October after the FCC found that it had blocked consumer Wi-Fi networks during a convention at a Nashville hotel. The hotel had demanded that consumers pay up to $1,000 per device to use its wi-fi network instead of the broadband service they already had. 

Hilton is also on board with the effort to stifle its guests.

“Hilton could not meet its guests’ expectations were it unable to manage its Wi-Fi networks, including taking steps to protect against unauthorized access points that pose a threat to the reliability and security of that network,” Hilton Worldwide wrote in a recent filing in support of Marriott and the hotel industry’s request, according to Recode.net.

In its filing, Google said that while it "recognizes the importance of leaving operators flexibility to manage their own networks, this does not include intentionally blocking access to other Commission-authorized networks, particularly where the purpose or effect of that interference is to drive traffic to the interfering operator’s own network (often for a fee)."

Better coffee

What hotels have perhaps not considered is the effect the wi-fi ban might have on their restaurants and coffee shops. After all, the coffee is better and the wi-fi is free at Starbucks, which is quite likely just around the corner from the hotel.

Most hotel eateries aren't exactly gastronomic delights anyway. Turning remaining customers into wi-fi hostages may not be the greatest marketing idea ever.

You ever notice how hotels are always a decade or two behind. It wasn't long ago you could put a quarter in the slow and get a massage from your bed. And t...

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Coke dumps voicemail; says it's lost its fizz

There are those who argue that if email had been invented first, the telephone would never have gotten off the ground. While that may be a little far-fetched, ask yourself: if voicemail had never been invented, would the world be better off?

Coca-Cola asked itself that question and decided the answer was yes, so it is ditching voice mail at its offices. It's not a cost-saving measure, it's just intended to increase productivity, Bloomberg reports.

Internal callers -- Coca-Cola's employees -- are being encouraged to use email or text. Some might even walk around the corner and get in a little facetime. We would mention gathering around the water cooler but maybe they don't have those at Coke's offices. Soda machine, maybe?

Good-bye

External callers -- customers, suppliers and such pests as customers and reporters -- instead of the infuriating voicemail tree, will get a message suggesting they use "an alternative method" to contact the department or person they're looking for. Then, they will hear the sweet fizzing sound of the dial tone. 

While Coca-Cola may be one of the biggest companies to banish voicemail, it's far from the only one. Increasingly, companies have voicemail but simply don't use it very much. Employees and suppliers know each other's direct smartphone numbers and either call or text when they have something to say.

Besides annoying callers, voicemail is a soul-deadener for the poor souls who must start or end their day wading through 30 minutes of more of messages that, most likely, should have been directed to someone else anyway.

What will be the last company to pull the plug on voicemail? Our money is on Verizon, which has perfected the art of the voicemail tree that leads nowhere except to a website that takes you in circles. It is, after all, when you get right down to it, still a telephone company and voicemail seems deeply encoded in its DNA.

Years ago, when working as a consultant, this reporter counted a few telephone companies among his clients. It was not unusual for voicemails from various Dilberts to come in faster than I could listen to them, meaning that I never actually accomplished anything other than listening to voicemails complaining that nothing was getting done on our various projects.

Which, when you come right down to it, is exactly what's wrong with voicemail. And maybe the phone company. 

There are those who argue that if email had been invented first, the telephone would never have gotten off the ground. While that may be a little far-fetch...

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T-Mobile will pay $90 million in refunds to settle "cramming" suit

T-Mobile is the latest wireless carrier to run afoul of charges it "crammed" millions of dollars of bogus third-party charges on customers' bills. The company has agreed to fully refund its customers for the unwanted charges, paying at least $90 million to settle a Federal Trade Commission lawsuit filed earlier this year.

Earlier this week, the Consumer Financial Protection Bureau (CFPB) sued Sprint for cramming its customers and in October, AT&T Wireless was fined $105 million

In addition to the full refunds T-Mobile is paying to settle the FTC lawsuit, T-Mobile will pay $18 million in fines and penalties to the attorneys general of all 50 states and the District of Columbia and $4.5 million to the Federal Communications Commission.

Consumers rate T-Mobile Billing Disputes

“Mobile cramming is an issue that has affected millions of American consumers, and I’m pleased that this settlement will put money back in the hands of affected T-Mobile customers,” said FTC Chairwoman Edith Ramirez. “Consumers should be able to trust that their mobile phone bills reflect the charges they authorized and nothing more.”

Under the terms of the settlement, T-Mobile will be required to offer full refunds to all affected consumers. The amount of money the company pays must reach at least $90 million in redress or other payments.

The settlement requires T-Mobile to contact all of its crammed customers – current and former – to inform them of the refund program and claims process, and to do so in a clear and conspicuous way.

The FTC filed suit against T-Mobile in July, alleging that the company placed millions of dollars in unwanted third-party charges on its customers’ mobile phone bills, receiving 35 to 40 percent of every charge they placed. The charges were for services like horoscopes, love tips and celebrity gossip, for which T-Mobile typically billed consumers $9.99 per month.

T-Mobile is the latest wireless carrier to run afoul of charges it "crammed" millions of dollars of bogus third-party charges on customers' bills. The comp...

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Verizon's secure encryption still lets hackers and government agents in

If you're planning to try Verizon's new secure encrypted Voice Cypher app, bear in mind that when Verizon uses words like “secure” or “encryption,” it might not necessarily mean what ordinary non-Verizon people thinks it means.

The original purpose of encryption is supposed to be “security” -- everybody knows how easy it is for determined hackers to break into your device, eavesdrop on a supposedly private communication or otherwise grab data they're not supposed to have. (The past couple years have made it plain that even wealthy multinational corporations worth billions of dollars can't afford security good enough to keep all hackers and malware away from them; what chance do us ordinary non-billionaires have?)

Therefore, say the pro-encryption arguments, if you can't prevent hackers from intercepting that data, you can code or encrypt it so that when they do steal it, it's nothing but meaningless gibberish to them. Of course, this concept predates computers by thousands of years: codes and encryptions to keep meanings hidden have existed almost as long as writing itself.

So it's easy to understand why criminal hackers would hate the idea of their would-be victims securely encrypting their data. And, provided you have the properly cynical mindset, it's easy to understand why various branches of the U.S. government hate the idea of American citizens (or anybody else on the planet) having secure encrypted data, too.

Make it illegal

Barely two months ago in October 2014, for example, FBI director James Comey suggested that Congress ought to pass a law (or rewrite an existing one) to make it illegal for anyone in the U.S. to have securely encrypted data. Why? Because Comey wants to make sure that the U.S. government always has the ability to remotely break into anybody's devices and read whatever's there.

The National Security Agency also enjoys being able to remotely break into devices and read data at will, and Verizon's new “Voice Cypher” encrypted calling app (by Cellcrypt) allows them to do that.

Verizon's actual webpage promoting Voice Cypher doesn't mention that, of course; instead it discusses how you can “Place secure calls and send secure messages on virtually any 4G, 3G or WiFi Network” thanks to “AES 256-bit encryption, NIST FIPS 140-2 Certified.”

What the marketing copy doesn't highlight is that Voice Cypher comes with a backdoor allowing easy access to this supposedly secure and encrypted data.

But Verizon and Cellcrypt both say that only law enforcement and other authorized government officials will be allowed to walk through this backdoor to steal or peruse this supposedly secure data. For example, Cellcrypt VP Seth Polansky dismissed any suggestion that such a backdoor created a security risk. “It's only creating a [security] weakness for government agencies …. Just because a government access option exists, it doesn't mean other companies can access it.”

For those who genuinely do worry about security matters, such reassurances fail on two different levels: one, it's ridiculous to assume that criminals wouldn't be able to hack into or otherwise take advantage of password-protected things theoretically limited to law enforcement; and two, even if this backdoor genuinely is limited only to duly authorized agents of the U.S. government, who's to say they can all be trusted?

"Good police work"

Of course, right now it's too early to say how many customers will choose Voice Cypher anyway. Last week, Google executive (and Verizon rival) Eric Schmidt dismissed the idea that any devices equipped with “trapdoors” could ever be secure, and also said they're unnecessary: “[Google's] argument, which I think is clear now, is the government has so many ways — properly so, by the way — to go in the front door. They’re called warrants. They’re called good police work.”

In other words: the law and Constitution already offer police and other government authorities plenty of ways to legitimately gather evidence to arrest and prosecute criminals, when necessary. The police can even take data off your phone without your consent or help – they just have to go to court and get a warrant first, as the Constitution demands. But it is true that, without these backdoors or trapdoors or whatever you want to call them, the government cannot easily and remotely access your encrypted device without your knowledge. That, ultimately, is what's at stake here.

Indeed, in October 2012 – before James Comey took over the FBI – the FBI's own online security agents published a list of “Safety tips to protect your mobile device,” which included urging “smartphone users” to encrypt their devices if the option was available. Two years later, FBI director Comey suggested that such advice ought to be illegal.

If you are a Verizon customer, or are considering becoming one, you'll have to decide whether Voice Cypher is worth having. Verizon hopes you'll think so.

If you're planning to try Verizon's new secure encrypted Voice Cypher app, bear in mind that when Verizon uses words like “secure” or “encryption,” it migh...

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Big wireless carriers under financial pressure as growth slows, costs rise

It's a tough time to be a big cell phone carrier, even though it's not likely AT&T, Sprint, T-Mobile or Verizon will get much sympathy from anybody.

The United States is just about cell-phoned out -- meaning everybody who conceivably could have a phone already has one. So the only way to eke out any growth is to raise prices or poach each other's customers. Obviously, you can't do both, so the big carriers have been spinning out all kinds of discounts aimed at prying customers away from their competitors.

This costs money. Lots of money, and it's not just the discounts and sign-up bonuses, it's the loss in value caused by investors taking a hard look at the industry's prospects.

The way the Wall Street Journal does the math. the four biggest carriers have lost $45 billion in market capitalization in just the last month -- more than the total capitalization of Sprint and T-Mobile combined.

Basically, investors have come to realize that customers are burning up more and more data -- which increases costs for the carriers -- while resisting price increases. Also, those stingy consumers are refusing to reproduce as quickly as necessary to create new smartphone users.

It's similar to what has happened to the cable TV business, which is starting to resemble the daily newspaper industry, which has been slowly going out of business for decades.

Spectrum space

Complicating it is an upcoming auction of spectrum space. The companies will have to pony up big bucks to get the additional spectrum they need to meet customers' data demands, then they'll have to invest heavily in more equipment and towers, all while coming up with aggressive new discounts to grow their customer base while fighting off tiny companies like Ting, Consumer Cellular and Republic, which just won Consumer Reports annual customer service ratings derby.  

Interestingly, many of those responding to the Consumer Reports survey -- as well as those commenting in ConsumerAffairs reviews -- say they experience better reception and fewer dropped calls from the smaller competitors. This is particularly galling to the Big Four since the smaller competitors actually operate on the big guys' networks, making it likely that the perceived differences are illusory. 

So, does all this mean that customers are getting a bargain? Not necessarily. In fact, it means the companies are working harder than ever to find ways to lasso consumers while looking for ways to jack up prices as time goes by. Both sides are locked in a tug-of-war for a service that didn't even exist until a few decades ago but which is now seen as essential to modern existence. 

It's a tough time to be a big cell phone carrier, even though it's not likely AT&T, Sprint, T-Mobile or Verizon will get much sympathy from anybody....

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Apple's AirDropped astronaut sloths: a silly photo highlights a serious security flaw

Today's “Helpful, straightforward advice that would've made absolute zero sense when we were kids” is this: If your Apple device recently received the Astronaut or Space Sloth photo via AirDrop, learn from this and be thankful it wasn't a nasty virus instead.

Now to deconstruct that statement. “Apple” with a capital A refers not to fruit but the tech company that makes Macintosh (Mac) computers, and other gadgets with a lowercase “i” at the beginning of their names: iPhone, iPad, iPod, iWatch, etc. And, according to the Apple company, “AirDrop lets you send files from your Mac to nearby Macs and iOS devices.”

Sounds pretty straightforward so far. Of course, anything that lets you send files can potentially be hijacked so someone else can send files – say, a hacker trying to plant dangerous malware or other viruses on your devices.

Or, less harmfully, a prankster highlighting (or taking advantage of) a little-known AirDrop security flaw by using it to send unsuspecting Mac and iGadget owners an unsolicited picture of a sloth wearing an astronaut's outfit – the Space Sloth.

Last month, on Nov. 10, Josh Lowensohn wrote an oddly confessional article for The Verge tech blog, admitting “I used Apple's AirDrop to troll strangers with photos of space sloths, and it's been going on for months.”

How does he do this?

Each day I get on the train to make the half hour voyage into San Francisco for work, I am surrounded by people using their phones. Many have iPhones or iPads, and have a setting turned on that lets me send them unsolicited files through AirDrop. Where Apple envisioned it as a way to send useful files and websites to friends and acquaintances, I use it to send photos of sloths to strangers. And not just any sloths, but sloths wearing spacesuits.

Lowensohn then discusses the history of the astronaut sloth photo and its creator, digital artist Pedro Dionísio, before going back to the technical features of AirDrop:

By default, the feature is not set to share with everyone. In fact, AirDrop itself is not even turned on until you use it for the first time. But I've found that a surprising number of people have flipped it on, and set it to accept things from the entire world. I assume that's by mistake, but by the time they've realized that, I've already struck. They can, of course, decline the AirSloth, but I know they've seen a small preview of it.

No big deal, right? But suppose that instead of a silly picture of an astronaut with a sloth's head, Lowensohn had chosen to send a nasty, explicitly pornographic picture (as many trolls seem to enjoy doing) – if that happens, you can certainly decline to accept an explicit, not-safe-for-work photo, but you've already seen a small preview of it, and depending on the circumstances it's possible that your kid or your boss did, too.

Even worse, suppose that instead of a photo, obscene or otherwise, Lowensohn had decided to send a virus to infect your device. Once you see that small preview, it's too late to stop it.

Name change

Lowensohn went on to describe how, in order to increase the chance of random iGadgets receiving the Space Sloth via AirDrop, he'd change the name of his phone based on his surroundings:

People name their phones all sorts of obvious and generic things. I, on the other hand, go with a handle that presents the possibility and plausibility of authority depending on the situation. Take the train for instance. It's Bay Area Rapid Transit, or BART for short. When I'm on there, I'll quickly rename my phone "BART." If it's a coffee shop, I'll change it to "Starbucks."

Changing names is a standard operating procedure for malicious hackers, too. Remember last June, when security researchers learned how ridiculously, insanely easy it was for malicious hackers to set up public wi-fi hotspots that looked like legitimate ones? Turns out that if you're a hacker wanting to fool a typical smartphone or tablet into thinking your malware-riddled hacker-bait hotspot is actually, for example, the free wi-fi at your local Starbucks, all you have to do is program your hotspot's electronic signal to say “I'm Starbucks wi-fi.” Then you can easily access any smartphone, tablet or other device that connects to you.

It really is that easy: say you are anyone you want to be, and the device will believe you because somehow its security-software writers made it all the way to adulthood and even a professional software-writing gig without internalizing the important security concept “Sometimes, people lie.”

That particular security flaw is relatively easy for smartphone owners to get around, by turning off the auto-connect features on their mobile devices. And it's similarly easy for iGadget owners to protect themselves from the AirDrop security flaw Lowensohn bragged about last month.

Did Apple ever envision people using it like this? I sure hope so. I can tell you that at a recent technology conference, I happened to be sitting a few feet away from a certain Apple executive and one of the company's PR people. I fired up AirDrop out of curiosity and both their phones immediately popped up, names included. During a break I ventured to ask why he'd left the setting on, and he told me it was to make it easier to share things with friends, and that he just left it on that way. When I told him what I used it for, I got a stern look of disapproval. Maybe they didn't think this through.

Apple action?

So that was the status quo a month ago, a long time in Internet terms, so surely by now Apple's done something-or-other to patch up that potential security leak, no?

No. On Dec. 1, FastCompany technology editor Harry McCracken took to his Twitter account to show the Space Sloth photo and say “Not sure if it's an accident or spam, but I was just AirDropped by a legendary Boston gangster.” Someone using the name Whitey Bulger had sent him the picture, and various people responded by linking to Lowensohn's Verge confessional.

By Dec. 10, the U.K.'s sensationalist Daily Mail tabloid asked its readers “Have you been a victim of SPACE SLOTH?” before pointing out, more reasonably, that the “Viral prank highlights [the] dangers of accepting unknown files using Apple's AirDrop.”

Think about ordinary email spam: you know that whoever sent it is up to no good, and you also know not to click on any links or download any attachments sent with it. Luckily, your email account doesn't have any setting equivalent to “automatically click on any link or download any file attachments in an email” — given the amount of spam email in existence, such a setting would be downright insane.

And you don't want AirDrop set up to automatically accept messages from just anybody, either – even if you don't receive anything worse than a silly photo of an spacefaring sloth.

Today's “Helpful, straightforward advice that would've made absolute zero sense when we were kids” is this: If your Apple device recently received the Astr...

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WSJ: Feds mimic cell towers in massive airborne dragnet

The Wall Street Journal today lifts the lid on a hitherto-secret government program that uses airborne devices to collect, analyze and track millions of cellphone calls, searching for criminals, fugitives and terrorists.

The devices -- called "dirtbags" -- are mounted in small Cessna aircraft and are essentially flying cell towers. Cell phones are "pinged," identify themselves and log onto the device; those of interest to the U.S. Marshals Service are then tracked while others are disconnected.

The Journal says it learned of the program through individuals who are closely associated with it but did not identify any of them. It compares the program to the National Security Administration's (NSA) massive surveillance of landline telephones and Internet traffic.

The airborne interception program became operational in 2007 and operates at regular intervals from bases around the country, the newspaper said. The Justice Department would not confirm or deny the existence of the surveillance program.

The device can cause brief interruptions of calls when it identifies itself to nearby cell phones and connects to them. The sources quoted by the newspaper said the devices are designed to minimize such interruptions, especially 911 calls.

A major advantage of the device is that it eliminates the necessity of interacting with cell phone carriers to identify and track calls, since the dirtbag device connects directly to wireless phones within range, cutting out the phone company.

A spokesman for the American Civil Liberties Union called the program "inexcusable."

The Journal's complete story is available online

The Wall Street Journal today lifts the lid on a hitherto-secret government program that uses airborne devices to collect, analyze and track millions of ce...

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AT&T cancels in-flight wireless plans

AT&T sometimes seems to live in a world of its own. Take last April, when it breathlessly announcedthat it would enter the in-flight broadband wireless business. competing with Gogo.

Gogo shrugged it off. AT&T's bid was "too little, too late," said Gogo CEO Michael Small who, it turns out, was right. Now, having heard the busy signal, AT&T says it will put its energies elsewhere. 

At the time of its announcement, AT&T quoted a survey showing that 9 out of 10 customers were unhappy with the speed and reliability of in-flight wireless and said its 4G LTE service would be markedly better.

But yesterday, AT&T said it will instead go after international wireless opportunities, including the purchase of a Mexican company. It is also, of course, trying to complete its $48 billion purchase of DirecTV.

Wall Street analysts greeted the news with a shrug, saying the in-flight wireless market was already "mature" -- meaning it has all the service providers it needs, primarily Gogo and Row 44, which have most North American airlines locked into long-term contracts.

AT&T sometimes seems to live in a world of its own. Take last April, when it breathlessly announced that it would enter the in-flight broadband wireless bu...

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Where have you been? Your smartphone wi-fi can tell anyone who asks

You've known for a long while now that anything with an Internet or wi-fi connection has the potential to be hacked, and the more you connect, the more you're at risk. The same problem exists with mobile devices' geolocation services: they can tell you where you are, and they can tell a clever hacker too.

However, a recent experiment at ArsTechnica illustrates another risk from public wi-fi hotspots: anytime you use Apple or Google mobile location services, you're also broadcasting a disturbingly large amount of data about your recent (and not-so-recent) whereabouts — with all the security and privacy issues that implies.

Every time you use Google or Apple mobile location services, you’re not just telling the services where you are. You’re also shouting many of the places you’ve been to anyone who happens to be listening around you—at least if you follow Google’s and Apple’s advice and turn on Wi-Fi for improved accuracy.

Wi-Fi is everywhere. And because of its ubiquity, Wi-Fi access points have become the navigational beacons of the 21st century, allowing location-based services on mobile devices to know exactly where you are. But thanks to the way Wi-Fi protocols work, mapping using Wi-Fi is a two-way street—just as your phone listens for information about networks around it to help you find your way, it is shouting out the name of every network it remembers you connecting to as long as it remains unconnected.

Not really new

This isn't exactly a new problem. In June, ArsTechnica discovered that public wi-fi could be dangerous for Xfinity or AT&T customers, because hackers could easily offer their own wi-fi disguised as an Xfinity or AT&T hotspot, then gain access to any device that connects to it.

This time, to test possible vulnerabilities in phones using Google or Apple mobile location, they used a low-power wi-fi adapter in monitor mode and a packet capture utility to try probing the smartphones of various volunteers. What did they discover?

We were able to match specific devices with recent (and some not really recent) movements of the owners of the phones—where they worked, where their homes were, and in some cases where they had shopped recently—using publicly available Wi-Fi base station mapping data.

Already visible

“Publicly” available. That's arguably the most disturbing implication of all: the experimenters were able to get all of this location data without technically “hacking” anything – they didn't hack or break into some database that is otherwise supposed to be secure. Instead, they simply used readily available equipment to look at information that's already visible to anyone who knows how to look.

So how can you protect yourself while still using your mobile devices in public? The most important thing to do is shut off the wi-fi connections on your mobile devices when you're not using them. (Indeed, that's similar to the advice given to reduce your chances of inadvertently connecting to a hacker-run wi-fi hotspot: turn off your automatic and set it so that it must ask before joining a mobile network, rather than automatically latch on to any network available.)

Turning off your wi-fi will lower your risk but not eliminate it completely, as ArsTechnica pointed out:

For most people, the best bet may be simply turning off Wi-Fi in transit. That won't keep you from being stalked whenever you arrive somewhere and turn on Wi-Fi, but it will stop your phone from shouting network names along the way.

You've known for a long while now that anything with an Internet or wi-fi connection has the potential to be hacked, and the more you connect, the more you...

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Wirelurker malware threatens iPhones and iPads

Bad news for iPhone and iPad users who previously thought themselves safe from malware and similar threats: security researchers at Palo Alto Networks have discovered an iPhone virus dubbed Wirelurker, which might have already infected hundreds of thousands of phones or tablets. Wirelurker is the first serious malware threat to iOS devices.

So far the virus appears limited to iPhones in China, but it could spread to the rest of the world very easily. Most phones currently infected with Wirelurker probably caught it from a third-party app store called Maiyada, whose customers are primarily Chinese.

Still, Palo Alto Networks suggests that iPhone users, in order to protect themselves from the virus, avoid downloading any third-party apps, not just those from Maiyada, and also avoid using third-party USB chargers, which have the potential to spread malware.

Third parties

Of course, where your phone, tablet or other electronic devices are concerned, it's generally a good idea to avoid all third-party accessories, not just software and not just for malware-avoidance reasons.

Back in 2005, shortly after cell phones had first evolved from “rare and expensive new technology” to “commonplace everyday appliances,” the Feds warned that cell phones' rechargeable batteries could be dangerous fire hazards, and one way to protect yourself was to avoid using third-party batteries or chargers, which might prove incompatible with the manufacturers' guidelines.

Since 2005, there have been plenty of incidents of cell phones catching fire (last August, an airplane in Tel Aviv even had to be evacuated after a passenger's iPhone battery caught fire) — and in almost all of those cases, it turned out that what actually caught on fire was not the phone itself, but a third-party battery or some other non-manufacturer-approved accessory.

Modern electronics, especially those powered by rechargeable batteries or operated by software, are one of the few areas of consumer life where brand loyalty actually makes good financial sense.

Bad news for iPhone and iPad users who previously thought themselves safe from malware and similar threats: security researchers at Palo Alto Networks have...

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California Highway Patrolman charged with stealing nude photos from arrestees' phones

Here's another reason why your smartphone should always be password-protected: former California Highway Patrolman Sam Harrington resigned his positionlast week, and is facing felony charges for stealing personal (and often explicit) photos from the phones of women whom he arrested.

However, his fellow officers Robert Hazelwood and Dion Simmons, who allegedly received stolen photos from Harrington, are not facing any charges at this time.

The Contra Costa Times says that, according to court documents, Harrington told investigators he and his fellow officers had been collecting and trading such images for years, and that police viewed it as a “game.”

Harrington's activities first came to light in late August, when he arrested a woman on suspicion of drunk driving (though the charges against her have since been dismissed, due to the investigation into Harrington's on-the-job actions). The woman later discovered that certain photos had been emailed from her phone, while she was in custody and the phone in police possession.

Horse face

Contra Costa's district attorney obtained a search warrant for the officers' phones, and found that Harrington and Hazelwood had the following discussions about the photos (explicit language replaced with dashes, as necessary):

-- Aug. 29, 2014 after at least one explicit photo of a DUI suspect, identified as Jane Doe #1, was sent:

CHP officer Robert Hazelwood -- 2:33 a.m. -- "Nudes are always better with the face"

CHP officer Sean Harrington -- 2:34 a.m. -- "Maybe she knows she has a jacked up horse face?!?!?"

Hazelwood -- 2:34 a.m. -- "Let's see the dl"

Harrington -- 2:44 a.m. -- "When we get back to the office. And we'll have MDF mug shot, too"

Hazelwood -- 2:45 a.m. "Haha ok."

Harrington -- 2:45 a.m. "But trust me. She's like a 5 or a 6 at best"

Hazelwood -- 2:46 a.m. "Her body is rocking though"

Harrington -- 2:46 a.m. "Small (breasts)"

Hazelwood -- 2:47 a.m. "Still looks good to me"

Going further back, the district attorney found the police would complain if the photos found on an arrestees' phone were not explicit enough:

-- Aug. 7, 2014, exchange after Harrington said he took two photos of a DUI suspect in a bikini from the 19-year-old's phone while she received X-rays following a car accident. He forwarded the images to a CHP colleague:

CHP officer Sean Harrington -- 2:46 p.m. -- "Taken from the phone of my 10-15x while she's in X-rays. Enjoy buddy!!!"

CHP officer Robert Hazelwood -- 2:48 a.m. -- "No f---ing nudes?"

Harrington -- 2:49 a.m. -- "Nope. Gotta work with what's there"

After first learning about this behavior from members of the California Highway patrol, Contra Costa Times reporter Matthias Gafni investigated and discovered similar cases throughout the country: police officers without warrants going through arrestees' phones, not even to search for evidence of a crime, but for salacious photographs and other sources of personal police amusement.

Of course, in most states it is illegal for police to go through people's phones unless they first obtain a search warrant — but then, if everybody could be trusted to obey the law, we wouldn't have to worry about data theft or password protection in the first place. And there wouldn't be any police officers. 

Here's another reason why your smartphone should always be password-protected: former California Highway Patrolman Sam Harrington resigned his position las...

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Feds sue AT&T for throttling customers with "unlimited" data plans

What if you went to an "all-you-can-eat" buffet and were told that you had to eat very slowly, using only one hand and pausing for 10 seconds between each bite?

Chances are, you'd think you'd been cheated. And that's just how many consumers feel when their wireless carrier offers them "unlimited" data service, then slows down -- or "throttles" -- their service if they start gobbling up too much of that data.

The Federal Trade Commission also takes a dim view of throttling. It filed a federal court complaint against AT&T Mobility, LLC, today charging that the company has misled millions of its smartphone customers by charging them for “unlimited” data plans while reducing their data speeds, in some cases by nearly 90%.

“AT&T promised its customers ‘unlimited’ data, and in many instances, it has failed to deliver on that promise,” said FTC Chairwoman Edith Ramirez. “The issue here is simple: ‘unlimited’ means unlimited.”

Consumers, like Avinash of Latrobe, Pa., say even customers who seldom use much of their "unlimited" data can still find themselves being throttled.

"I have been with ATT for 5 years now, having unlimited data plan. I had been using max of 0.4 GB every month. This month while travelling I used up 3 GB (for looking up restaurants and using Google maps). My data speed was reduced," Avinash said in a complaint to ConsumerAffairs, including a screen grab of his chat with an AT&T rep:

Clark, of Santa Clara, Calif., said in June that he had a similar experience with his "unlimited" plan. 

"AT&T sent me a warning that I have now reached 3 gig use on my 'unlimited' data plan and if I continue to abuse my use of data, my slow data speed will be throttled back further," something he had hoped to avoid by signing up for the "unlimited" option years ago.

"I can't imagine myself as a heavy user, up until 6 months ago I hardly used any data at all and only recently began using a Netflix service to watch video at the local greasy spoon when having breakfast, something AT&T advertises a customer should do when enjoying their service," he said. "On contacting AT&T customer service I was told this was their new policy, too bad, pound salt and I was refused any further resolution."

Clark said he must have "missed AT&T's semi-secret announcement of their unilateral decision to impose new terms and conditions on my cell phone agreement."

Inadequate disclosure

The FTC’s complaint alleges that the company didn't adequately disclose to its customers on unlimited data plans that, if they reach a certain amount of data use in a given billing cycle, AT&T reduces – or “throttles” – their data speeds to the point that many common mobile phone applications – like web browsing, GPS navigation and watching streaming video – become difficult or nearly impossible to use.

According to the FTC’s complaint, AT&T’s marketing materials emphasized the “unlimited” amount of data that would be available to consumers who signed up for its unlimited plans. The complaint alleges that, even as unlimited plan consumers renewed their contracts, the company still failed to inform them of the throttling program.

When customers canceled their contracts after being throttled, AT&T charged those customers early termination fees, which typically amount to hundreds of dollars.

The FTC alleges that AT&T began throttling data speeds in 2011 for its unlimited data plan customers after they used as little as 2 gigabytes of data in a billing period. According to the complaint, the throttling program has been severe, often resulting in speed reductions of 80 to 90% for affected users.

Thus far, according to the FTC, AT&T has throttled at least 3.5 million unique customers a total of more than 25 million times.

Verizon and other carriers have also faced questions about their data management practices. 

Consumers object

According to the FTC’s complaint, consumers in AT&T focus groups strongly objected to the idea of a throttling program and felt “unlimited should mean unlimited.” AT&T documents also showed that the company received thousands of complaints about the slow data speeds under the throttling program.

Some consumers quoted the definition of the word “unlimited,” while others called AT&T’s throttling program a “bait and switch.” Many consumers also complained about the effect the throttling program had on their ability to use GPS navigation, watch streaming videos, listen to streaming music and browse the web.

The complaint charges that AT&T violated the FTC Act by changing the terms of customers’ unlimited data plans while those customers were still under contract, and by failing to adequately disclose the nature of the throttling program to consumers who renewed their unlimited data plans.

What if you went to an all-you-can-eat buffet and were told that you had to eat very slowly, using only one hand and pausing for 10 seconds between each bi...

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How to get an "A" in math

There used to be a time where if you didn't understand your math homework you called a friend and they would try patiently to explain how to multiply something to the 10th power over the phone. That might seem barbaric to kids these days. If they only knew what doing homework was like without a smartphone!

Now there is a smartphone app that can do their math homework for them and this isn't just the times tables, although it can do that too.

It knows what 23 is and can calculate the root of 246. It's called PhotoMath by Microblink and it uses your phone's camera to solve equations. Sounds horrible if you are a math teacher or a parent for that matter. You're thinking how are they ever going to learn?

Well the brighter side of this is the app then teaches you step by step how to solve the problem yourself. It's almost like a tutor. That's pretty hard to say no to.

It does all the basic math like addition, subtraction, multiplication and division as well as the more complicated problems. It works from printed text only, anything the phone's camera can see.

Schools haven't quite figured out how to deal with all of this smartphone technology just yet.

If they wait long enough though, I am sure there will be an app for that.
The PhotoMath app is available for iPhones and Windows phones and is coming to Android phones in 2015.

There used to be a time where if you didn't understand your math homework you called a friend and they would try patiently to explain how to multiply somet...

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Apple Pay is available today

Today, Apple finally rolled out its long-promised mobile wallet – officially known as Apple Pay.

When Apple released the iPhone 6 and iWatch last month, most of the buzz focused not on the gadgets themselves, but a feature made standard on both: the ability to not only make payments with your mobile device (as opposed to a credit or debit card), but to make payments that are supposedly more secure than traditional American credit card purchases, thanks to the process of “tokenization.”

Of course, for Apple Pay to prove as successful as Apple wants, two different things must happen: large numbers of customers must want to use Apple Pay when making purchases – and large numbers of merchants must be willing to accept Apple Pay. From Apple's perspective, that second hurdle might prove harder to overcome than the first.

The Wall Street Journal noted on Monday that “Many retailers — including the nation’s largest, Wal-Mart Stores Inc. — aren’t part of Apple’s network. Only a minority have machines capable of reading the near-field communication radio signal that makes Apple Pay work. And only Apple’s newest phones, the iPhone 6 and iPhone 6 Plus, include the technology.”

Too early to say

It's far too early yet to predict whether Apple's mobile wallet will prove to be the Next Big Thing, or fizzle out.

Even the business media is divided: on Oct. 17, Bloomberg Businessweek reporter Kyle Stock wrote an article explaining “Why retailers will love the Apple Pay era” (short version: for the same reason most retailers already accept credit cards despite the swipe fees they must pay, and most casinos require gamblers to buy chips rather than bet cash – because the common psychological phenomenon known as “decoupling” ensures that most people, regardless of how intelligent they otherwise are, simply do not view betting a $20 casino chip or putting a $20 charge on a credit card as being identical to spending $20 in actual cash, even though such actions have identical results where your net worth is concerned).

So one Businessweek analyst thinks Apple Pay will be a rousing success with retailers for the same reason they adopted other consumer “decoupling” technologies, such as credit card payments.

Then, today, another Businessweek analyst, Joshua Brustein, explained that “Apple Pay is too anonymous for some retailers” who are “are less than thrilled about Apple’s anonymous infrastructure.”

Useful data

Short version of why: thanks to credit cards and other longstanding non-cash payment options, retailers already have ways to take advantage of consumer decoupling, with the added bonus that accepting credit or debit card payments enables these retailers to collect lots of potentially useful marketing data about you and your buying habits. Apple Pay, by contrast, “won’t collect information about what people buy — and it’s designed to ensure no one else can, either.”

So from a merchant's perspective, Apple Pay might arguably be merely a less-useful version of an already-existing payment system, with the added downside that the merchant can't even take advantage of this less-useful system without first spending money to acquire the equipment for it.

Indeed, in mid-September, Walmart, Best Buy and other major retailers were quick to announce that they would not be accepting Apple Pay (though other major companies, including CVS, Walgreens, McDonald's, Bloomingdale's, Macy's and Whole Foods, said the opposite). Many of the merchants forgoing the Apple Pay options said it's because they are working with a retailer-owned group called the Merchant Customer Exchange to develop a competing mobile payment option called CurrentC, expected to be released next year.

Unlike Apple Pay, the downloadable CurrentC app will be usable on any Android or iPhone, not just the newest Apple products, and it will not require merchants to invest in specialized checkout scanners the way Apple Pay does.

One thing does seem certain: the era of widespread mobile payment options is almost here. The only question is which option will be the first to dominate the market: Apple Pay, CurrentC or something which hasn't even been developed yet?

Today, Apple finally rolled out its long-promised mobile wallet – officially known as Apple Pay....

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AT&T to pay $105 million for mobile cramming

AT&T Wireless will pay $105 million to settle federal and state charges that it billed customers hundreds of millions of dollars in bogus charges for horoscopes, love tips and other effluvia that the customers had not ordered -- a practice known as "cramming."

In its complaint, the FTC alleges that AT&T kept at least 35 percent of the charges it imposed on its customers.

The lion's share of the payment -- $80 million -- will go to the Federal Trade Commission to provide refunds to consumers. Another $20 million in penalties is being paid to the 50 states and the District of Columbia and $5 million is going to a fine imposed by the Federal Communications Commission.

“I am very pleased that this settlement will put tens of millions of dollars back in the pockets of consumers harmed by AT&T’s cramming of its mobile customers,” said FTC Chairwoman Edith Ramirez. “This case underscores the important fact that basic consumer protections -- including that consumers should not be billed for charges they did not authorize -- are fully applicable in the mobile environment.”

In a statement, AT&T said other companies also offered third-party billing and said it had had "rigorous protections in place to guard consumers against unauthorized billing" but discontinued third-party billing last year.

"Today, we reached a broad settlement to resolve claims that some of our wireless customers were billed for charges from third-parties that the customers did not authorize," said AT&T spokesman Marty Richter. "This settlement gives our customers who believe they were wrongfully billed ... the ability to get a refund." 

What to do

Beginning today, consumers who believe they were charged by AT&T without their authorization can visit www.ftc.gov/att to submit a refund claim and find out more about the FTC’s refund program under the settlement.

If consumers are unsure about whether they are eligible for a refund, they can visit the claims website or contact the settlement administrator at 1-877-819-9692 for more information.

Under the terms of its settlement with the FTC, AT&T must notify all of its current customers who were billed for unauthorized third-party charges of the settlement and the refund program by text message, e-mail, paper bill insert and notification on an online bill. Former customers may be contacted by the FTC’s refund administrator.

In addition to the refund requirements, AT&T is also required to obtain consumers’ express, informed consent before placing any third-party charges on a consumer’s mobile phone bill. In addition, the company must clearly indicate any third-party charges on the consumers’ bill and provide consumers with the option to block third-party charges from being placed on their bill.

Many complaints

The FTC’s investigation into AT&T showed that the company received very high volumes of consumer complaints related to the unauthorized third-party charges placed on consumer’s phone bills. For some third-party content providers, complaints reached as high as 40 percent of subscriptions charged to AT&T consumers in a given month.

In 2011 alone, the FTC’s complaint states, AT&T received more than 1.3 million calls to its customer service department about the charges.

According to the complaint, in October 2011, AT&T altered its refund policy so that customer service representatives could only offer to refund two months’ worth of charges to consumers who sought a refund, no matter how long the company had been billing customers for the unauthorized charges.

Prior to that time, AT&T had offered refunds of up to three months’ worth of charges. At that time, AT&T characterized its change in policy as designed to “help lower refunds.”

In February 2012, one AT&T employee said in an e-mail that “Cramming/Spamming has increased to a new level that cannot be tolerated from an AT&T or industry perspective,” but according to the complaint, the company did not act to determine whether third parties had in fact gotten authorization from consumers for the charges placed on their bills.

In fact, the company denied refunds to many consumers, and in other cases referred the consumers to third-parties to seek refunds for the money consumers paid to AT&T.

Confusing bills

The structure of AT&T’s consumer bills compounded the problem of the unauthorized charges, according to the complaint, by making it very difficult for customers to know that third-party charges were being placed on their bills.

On both the first page of printed bills and the summary of bills viewed online, consumers saw only a total amount due and due date with no indication the amount included charges placed on their bill by a third party. The complaint alleges that within online and printed bills, the fees were listed as “AT&T Monthly Subscriptions,” leaving consumers to believe the charges were part of services provided by AT&T, as seen in this excerpt of an actual AT&T bill:

Excerpts from an actual AT&T bill showing cramming charges. (Image source: FTC) 

AT&T Wireless will pay $105 million to settle federal and state charges that it billed customers hundreds of millions of dollars in bogus charges for horos...

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Buying a used iGadget? Here's how to make sure it's not stolen

The good news is: Apple has unveiled a free new service that will hopefully cut down on the theft of iGadgets (more specifically, the resale of stolen iGadgets) by allowing potential buyers of used iPads, iPhones and iPods with touch screens to check whether the device was stolen from its rightful owner.

The bad news is: apparently hackers have already developed a devious workaround for it.

Here's how the Apple service works: recent generations of iGadgets come with what Apple calls an “Activation Lock” option, basically the Apple-specific name for a generic “kill switch.”

A kill switch, in turn, is an anti-theft mechanism enabling you, the legitimate owner of a smartphone or other device, to remotely kill or deactivate it, if it gets lost or stolen. The hope, of course, is that thieves will stop stealing smartphones, tablets and other pricey electronics if they know those devices will be rendered useless and worthless.

iThieves

Apple's newly offered online anti-theft tool is on the iCloud website's “Activation Lock” page. Potential buyers of a used iThing can visit the page and type in the device's IMEI (International Mobile Station Equipment Identity) or serial number, to check the device's activation lock status.

If you don't know how to find the IMEI or serial number for a given device, Apple has an online list of model-specific instructions here.

Unfortunately, as PCWorld noted, hackers almost immediately figured out a way to work around Apple's system by tricking locked devices into visiting an alternative iCloud server.

The good news is: Apple has unveiled a free new service that will hopefully cut down on the theft of iGadgets (more specifically, the resale of stolen iGad...

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Wireless carriers offer double the data as battle for customers heats up

If it seems to you that wireless prices are gyrating even more wildly than gas prices, you may be right. Since just about everyone in the U.S. now has a smartphone, carriers are having a hard time figuring out to grow, and growth is the name of the game in any business.

Consumers rate Verizon Wireless

AT&T, Sprint, T-Mobile and Verizon already offer unlimited calling -- not that anyone makes phone calls anymore -- and now they're doubling the amount of data they're offering, while simultaneously trying to figure out how to keep their customers from clogging up their networks by using all that data they're paying for.

If this sounds contradictory, it's because it is. It can also be embarrassing. Take Verizon Wireless. It has been complaining lately that customers with "unlimited" data plans (offered in 2012 but no longer being sold to new customers) were using too much data, so it announced plans to start throttling data speeds for users who actually dared to use a lot of the "unlimited" data they're paying for.

Meanwhile, Sprint and AT&T were launching new promotions offering to double the amount of data on some of their most popular plans and T-Mobile, which apparently sees itself as the Southwest Airlines of the wireless business, has been practically giving away the store.

Here are a few of the rates for individual plans we found today. As always, the various plans are incredibly confusing and require your undivided attention. 

CarrierDataPrice
AT&T2 GB$65
SprintUnlimited$60
T-Mobile3 GB$60
Verizon3 GB$60

On second thought ...

Consumers rate AT&T Wireless

Since this is the day that Verizon had said it would begin throttling data-hungry customers, it was turning into something of a public relations nightmare to have all those other companies offering more data for the same price.

So, hat in hand, the company now says it has thought better of its plan, which it couched under the slightly better-sounding moniker "network optimization."

This is basically what a nightclub bouncer does -- throw out customers who overimbibe under the guise of "ambiance optimization." Anyway, whatever you want to call it, Verizon now says it won't do it. At least not now.

“We’ve greatly valued the ongoing dialogue over the past several months concerning network optimization and we’ve decided not to move forward with the planned implementation of network optimization for 4G LTE customers on unlimited plans,” said Verizon, tacitly admitting it had caught hell for even thinking of such a thing.

Not only did Verizon take a beating in the press and from its customers, it caught the attention of Tom Wheeler, the Federal Communications Chairman, who pronounced himself "deeply troubled" by the plan.

Who can you trust?

But despite Verizon's backing down, the whole affair may cause consumers to be a little skeptical of the latest load o'data plans. After all, what's to stop one or more of the carriers to launch their own "network optimization" campaign a year or two from now when it decides it wasn't such a good idea to sell so much data capacity so cheaply?

The wireless companies, after all, must answer to their shareholders, who tend to take a dim view of giving away even one little gigabite more than necessary. 

You don't have to read between the lines to see how financiers feel about it. The Wall Street Journal today says the doubled data promotion "has little cost in the near term but ... could be trading away future revenue growth."

Our advice: find the best deal you can but don't count on it being there forever.

If it seems to you that wireless prices are gyrating even more wildly than gas prices, you just may be right. Since just about everyone in the U.S. now has...

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AT&T data throttling policy: only legacy customers cause network congestion

Here's more evidence in support of the theory that communications service providers often use data throttling solely to make more money for themselves.

Though AT&T likes to cite network congestion as an excuse for throttling certain of its mobile customers' connection speeds, its latest offer to double the data limits for new subscribers who sign up for its Mobile Share Value plan by October 31 strongly suggests that AT&T's data-throttling activities have less to do with reining in bandwidth hogs than with generating additional revenue for AT&T.

There's a longstanding debate over the issue of data throttling (or “network optimization,” as Verizon prefers to call it): deliberately slowing down, or “throttling,” someone's Internet connection, possibly to the point where streaming videos and other common activities becomes impossible until the throttling stops.

Fans of the practice (read: the companies who do it) say data throttling is necessary to prevent certain users from hogging up all the bandwidth, thus ruining smartphones and the Internet for everybody. And there's no denying that sometimes, when networks actually are congested due to heavy use, some level of throttling for the heaviest users genuinely is necessary to keep the network running.

(On a related note: that's why, when hurricanes or other natural disasters knock out utilities over a wide area, cell phone and smartphone users are asked to use text messaging rather than voice calls to keep in touch with friends and family: because text messaging uses far less bandwidth.)

Counter-arguments

Critics of the practice have a variety of counter-arguments, the most common of which is that data throttling has nothing to do with bandwidth capacity or healthy network management, but is merely a way for companies to get more money out of customers.

FCC chairman Tom Wheeler is one of those critics. Last July, he sent an open letter to Verizon executives expressing concerns over their data throttling/network optimization tactics and asking several pointed questions, including this:

What is your rationale for treating customers differently based on the type of data plan to which they subscribe, rather than network architecture or technological factors? In particular, please explain your statement that, "If you're on an unlimited data plan and are concerned that you are in the top 5% of data users, you can switch to a usage-based data plan as customers on usage-based plans are not impacted."

Not that Verizon is unique in its apparent tendency to use data throttling for reasons other than legitimate network management. In January 2014, AT&T launched its then-new “Sponsored Data” program, which it said would shift “mobile data costs from the consumer to the content provider.” (In other words, websites would have to pay in order to ensure AT&T mobile visitors could access them in a timely fashion, in complete opposite of proposed “net neutrality” rules.)

At the time, TechDirt called the program “an admission that data caps have nothing to do with congestion.”

And AT&T's current “double the amount of data” promotion seems to admit the same.

"Unlimited" data

Data throttling doesn't affect all AT&T mobile customers, only those with unlimited data plans. (AT&T no longer offers unlimited plans to new customers, though it still has some old customers enrolled in what it now calls the “Legacy Unlimited Data Plan.”)

AT&T's info page about the legacy plan says that:

As a result of the AT&T network management process, customers on a 3G or 4G smartphone with an unlimited data plan who have exceeded 3 gigabytes of data in a billing period may experience reduced speeds when using data services at times and in areas that are experiencing network congestion. Customers on a 4G LTE smartphone will experience reduced speeds once their usage in a billing cycle exceeds 5 gigabytes of data. All such customers can still use unlimited data without incurring overage charges, and their speeds will be restored with the start of the next billing cycle.

In other words: even if your plan promises “unlimited” data, once you pass a certain limit your connection will be throttled. However, the very first clause in the paragraph suggests this throttling is necessary, as part of “the AT&T network management process.”

So, if you have an unlimited data plan with AT&T, your connection might be throttled after you exceed 3 GB of data in a billing period, and will definitely be throttled if you exceed 5 GB. How does that compare to AT&T's regular plans, or its current promotion for new customers who sign up by Halloween?

AT&T is offering new promotional Mobile Share Value plans that include double the amount of data offered on Mobile Share Value plans with 15GB to 50 GB of data. New and existing customers who proactively sign-up by October 31* get 30GB of data for the price of 15GB**

Throttled after 5GB

So AT&T users with unlimited data plans get throttled after using only 5GB in a billing period, whereas “ordinary” new customers get at least 15GB per billing period, but as part of this promotion can get 30GB – six times what “unlimited” data users get before they're throttled. And that's the smallest data plan; AT&T offers another with a whopping 100GB of shared data – for $375 per month.

Yet the same company that can provide up to 100 gigabytes of shared data to certain customers also claims that “network management” obligates it to throttle any unlimited data user who shares a mere 5 gigabytes of data. That's how math works at AT&T company HQ: 5GB from an “unlimited” plan causes more congestion than a 100GB limit.

Here's more evidence in support of the theory that communications service providers often use data throttling solely to make more money for themselves....

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Texting and driving with Google Glass -- better (and worse) than a smartphone

Texting while driving isn't good even when you're using Google Glass, as a new University of Central Florida studydemonstrates. There was one twist though -- the researchers found that texting Glass users outperformed smartphone users when regaining control of their vehicles after a traffic incident.

“Texting with either a smartphone or Glass will cause distraction and should be avoided while driving” said UCF researcher Ben Sawyer. “Glass did help drivers in our study recover more quickly than those texting on a smartphone. We hope that Glass points the way to technology that can help deliver information with minimal risk.”

The study, conducted in cooperation with the Air Force Research Laboratory, is the first scientific look at using Google Glass to text while driving.

Distracted drivers are a menace on the road, and according to the National Safety Council cell-phone use leads to at least 1.6 million crashes each year. With the emergence of Glass and competitors, several states are considering banning drivers from wearing those technologies.

“As distractive influences threaten to become more common and numerous in drivers’ lives, we find the limited benefits provided by Glass a hopeful sign of technological solutions to come,” Sawyer added.

The study

Sawyer and his team set up the experiment with 40 twentysomethings. Each drove in a car simulator with either Glass or a smartphone and was forced to react to a vehicle ahead slamming on its brakes.

Researchers compared text-messaging participants’ reactions on each device to times when they were just driving without multitasking. Those using Glass were no better at hitting their brakes in time, but after their close call returned to driving normally more quickly.

“While Glass-using drivers demonstrated some areas of improved performance in recovering from the brake event, the device did not improve their response to the event itself,” Sawyer said. “More importantly, for every measure we recorded, messaging with either device negatively impacted driving performance. Compared to those just driving, multitaskers reacted more slowly, preserved less headway during the brake event, and subsequently adopted greater following distances.”

While Glass gives drivers the option of using head movements and voice commands to view and respond to text messages, avoiding clumsy thumbs, texting with the technology still causes distraction.

Bottom line: don’t trade your smartphone in for Google Glass because you think it will make texting safer behind the wheel. It won’t, at least not for now.

Texting while driving isn't good even when you're using Google Glass, as a new University of Central Florida study demonstrates. There was one twist though...

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Is Verizon scheming to unbundle cable?

The telcos are headed for Hollywood again. Back in the 1990s, when Congress sort of deregulated telecommunications, AT&T, the then-Baby Bells and everybody else who could generate a dial tone saw themselves replacing cable TV and over-the-air television.

Pasty East Coast telco executives bought gold Rolexes and headed West, setting up operations poolside at the Beverly Hilton. But things didn't quite work out as planned.

Consumers rate Verizon Wireless

Cable, though nearly as unpopular as Congress, proved just as difficult to dislodge and cable companies even had the nerve to start offering telephone service themselves, setting off a decadelongs struggle that often seemed more like a merger contest than an epic battle for customers. It didn't help that the cable packages the telcos put together were indistiguinshable from the ones cable had lashed together earlier.   

Now that the players are merged down to a workable number -- AT&T and Verizon on the telco side, Comcast and, uh, Comcast on the cable side -- upstarts like Netflix and, for a little while, Aereo are proving disruptive, delivering movies and TV shows over the Internet. To make matters more confusing, just as the big guys have managed to get workable circuits into most American homes, consumers are abandoning not only cable TV but even their landline telephone.

What's a monopoly to do?

Well, AT&T is buying DirecTV and says it will be offering a vast menu of satellite video to urban dwellers and actual high-speed satellite broadband to rural dwellers.

Verizon, meanwhile, is plotting to offer what's being called a "TV-like service" over the Internet. Sony and Dish Network are doing the same, although the general wisdom is that they are seriously outgunned by Verizon.

Consumers rate AT&T Uverse

Verizon CEO Lowell McAdam lifted the veil a bit this week at the Goldman Sachs Communacopia conference, saying the service will include "the Big 4 for sure" (meaning ABC, CBS, NBC and Fox, presumably) as well as customized services from the likes of DreamWorks Animation.

The selling point, apparently, is that the content will be at least somewhat unbundled. “No one wants to have 300 channels on your wireless. Everyone understands it will go to a la carte. The question is what does that transition look like,” McAdam said, according to Deadline.

Did he say wireless? Yes, he did. Verizon apparently sees this TV-like service as something that's delivered wirelessly to your smartphone, iPad, etc., which is thought to be how Millennials prefer to consume their content, while the old folks are hunkered down in the den fiddling with FiOS and staring at their giant-screen TVs.

Keep in mind that wireless today (unlike the bad old broadcast days) is two-way and Verizon is increasingly offering upload speeds that rival download speeds, which McAdam says will make it easy for consumers not only to assemble their own packages of downloaded content but also create and upload content they create themselves. Sort of like, you know, the Internet. 

It just could be that, soon, consumers will be able to put together their own bundles and pay only for what they want. While this is probably bad news for the hundreds of cable channels hardly anyone watches, it could turn out to be at least mildly good news for consumers.

Stay tuned.

The telcos are headed for Hollywood again. Back in the 1990s, when Congress sort of deregulated telecommunications, AT&T, the Baby Bells and everybody else...

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AT&T promising 15 megabit wireless broadband after DirecTV merger

Rural dwellers have been largely left out of the broadband revolution that has swept the rest of the country but AT&T says that will change when its merger with DirecTV becomes final. It's promising broadband speeds of 15 megabits per second or better in rural areas. 

AT&T has technology “ready to go” by late 2015 to deliver high-speed wireless Internet service that’s faster than LTE, because it is delivered via a dedicated swath of spectrum, said Ralph de la Vega, president and CEO of AT&T's mobility division, according to a report in Variety.

de la Vega said AT&T's technology will permit it to deliver both TV and broadband via a single dish at the customer's home. Presently, satellite TV and Internet require separate dishes and satellite Internet is regarded as agonizingly slow by most consumers.

AT&T's $67 billion takeover of DirecTV is being reviewed by the Federal Communications Commission and other regulators. Unlike the proposed Comcast-Time Warner merger it has not aroused too much opposition from traditional foes of big media mergers.

---

CORRECTION: An earlier version of this story quoted de la Vega as proposing 50 mbps broadband. An examination of the conference transcript shows he actually said 15 mbps. 

Rural dwellers have been largely left out of the broadband revolution that has swept the rest of the country but AT&T says that will change when its merger...

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Apple's iPhone6 and iWatch to offer "Apple Pay" mobile payment features

September is the month when Apple traditionally unveils its newest-generation iGadgets, and the offerings this time around include the iPhone6 and an iWatch or “smartwatch” (basically a smaller iPhone worn like a wristwatch).

However, the real buzz so far does not involve the gadgets themselves, but a standard feature both offer: the ability to not only make payments with your mobile device (as opposed to a credit or debit card), but to make payments that are supposedly more secure than traditional American credit card purchases, thanks to the process of “tokenization.”

On the other hand, privacy advocates understandably have qualms about the idea of tying yet another vital aspect of daily life (buying and paying for things you need or want) to a hackable and NSA-accessible device that already has the ability to monitor everyplace you go and overhear everything you say.

Apple already included a fingerprint scanner on last September's iPhone5S. As with all such innovations, it includes equal parts increased security and increased security risk: greater security, in the sense that any thief would find stealing and copying your fingerprint much more difficult than stealing and copying your Social Security number, bank-account information or other presumably “confidential” data about you, plus the increased security risk of yet more personal information about you for a thief to find after breaking into the secure database where it's stored.

(Not to mention that if or when this happens, you can always change your bank or credit card account numbers, and even get a new Social Security number if you're willing to put some money and effort into it – but changing your fingerprint is a completely different ballgame.)

Next big thing

That said, tokenization has nothing to do with fingerprints or biometric identity. Right now, tokenization appears on track to be the Next Big Thing in electronic-payment security; earlier this week, the Americn credit card industry announced plans to introduce tokenization to fight back against the epidemic of hackers breaking into corporate databases, filching customers' “confidential” financial information, and using those to steal enormous sums of money (last year's security breach at Target alone was estimated to cost financial institutions over $200 million in losses — as of last February. The amount may have increased since then.)

Basically, current American electronic payment systems work like this: you, the shopper, have a credit or debit card with a unique account number which (in theory) is only known by you. In practice, of course, that account number is known to you, your credit card company, and every single business, financial or government entity where you used your credit card to pay for something.

Eventually, at least one of those business, financial or government entities will get hacked, the hackers get your confidential information, and then they either use it to pay for their own spending spree, or sell it to an identity thief who then does the same thing.

Tokenization is supposed to simplify matters: when you use your credit card to buy merchandise, the merchant does not get your personal account information. Instead, the merchant gets a “token” – a long and unique string of numbers – and uses that token to verify your data with the credit card company before giving you (or the identity thief posing as you) the merchandise.

With tokenization, credit card companies still must protect against the risk of hackers breaking into their database, but that is much easier than our current system, where the companies must merely put their faith in the database security of every merchant who accepts their card.

The new Apple products with their mobile payment options are expected to do essentially the same thing while bypassing the credit card companies.

The mobile payment system has this in common with credit cards: they're not strictly the equivalent of cash, which anybody can collect and spend; you can only accept credit-card payments if you have made arrangements to do so with the credit card company. The same will hold true for Apple mobile payments, with the additional wrinkle that the number of businesses currently accepting Apple is far less than those who will take MasterCard, Visa or Discover. (Of course, if you buy anything in Apple retail stores, you can defnitely use your iPhone to pay for that. CVS and Walgreens have also agreed to accept Apple mobile payments.)

Though the number of businesses accepting mobile payments in general is almost certain to increase. Apple's is not the first non-credit-card mobile payment system: Google Wallet and Softcard have already pioneered the field.

September is the month when Apple traditionally unveils its newest-generation iGadgets, and the offerings this time around include the iPhone6 and an iWatc...

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Will the end of carrier subsidies mean more expensive smartphones?

There's possible bad news on the horizon for the Apple company and its stockholders — not to mention ordinary consumers who want to buy the latest iProducts but think current iPrices are already too high: the up-front cost of an iPhone and other devices, whether from Apple or otherwise, is due to rise, now that various carriers have decided to stop subsidizing them.

AndroidHeadlines reported two weeks ago that Chinese wireless-service carriers will be ending their device subsidies, and that “high-end device sales” were sure to suffer as a result.

On Sept. 7, The Wall Street Journal reported a similar story about carriers in the U.S. (especially Apple, which is unveiling a new and more expensive iPhone this week): “In recent years, Americans have been spared the sticker shock of paying full price for a new iPhone because wireless operators offered upfront discounts approaching $500 a phone.”

In China, which due to its enormous population has more wireless subscribers than any market in the world, the subsidy is even higher: a latest-gen iPhone or Samsung Galaxy that would ordinarily cost $800 “only” costs $100 or $200 to the end user. (Bear in mind: the average Chinese household income is only about one-eighth the average American household income. Even when purchasing power parity is taken into account, a $500 or $600 subsidy is worth far more to the average Chinese citizen than the average American.)

Balancing act

Phone companies and carriers already engage in a tricky balancing act with their consumers: of course, the company wants to get as much money from you as possible. Meanwhile, you probably want to pay the company as little money as possible — even if you're extravagant enough to change phones every two months or so, whenever the latest improved or upgraded version comes onto the market.

Even with subsidies, you can still find yourself spending a lot of money on new phone technology, especially if you're a fan of Apple products which tend to sell for a premium compared to the other brands.

So, at first glance, it looks like the end of carrier subsidies will turn out badly for somebody: bad for the consumers who will pay more for the same product, or perhaps bad for the companies, if enough consumers decide “Rather than pay more for new-gen technology, let's hang on to this slightly older-gen technology awhile longer.”

On the other hand, perhaps the idea “This will end badly” is unreasonably pessimistic — or perhaps the idea “Subsidies are good, thus the end of a subsidy is bad” is false.

The Motley Fool investment blog certainly thinks so. It suggested that the end of subsidies could ultimately benefit Apple, and iPhone consumers:

Going back to the first rule of economics -- there's no such thing as a free lunch -- the carrier isn't paying the subsidy, you are. The carriers are simply paying up front to lock you into a contract; they price the monthly plans accordingly to reap the costs of the initial hardware subsidy.

Contract terms

True enough. If you have a subsidized smartphone — either an $800 new-gen model for which you paid a fraction of that, or an older-gen model you got “for free” — it's almost certain that in exchange for that free or reduced-price phone, you had to sign a contract agreeing to pay for phone service from a particular provider for a certain length of time. And if you could see your wireless carrier's precise financial breakdown (its profits versus its expenditures), you'd certainly see that the company did not lose any money off your free or discounted phone.

Even with the consumer directly bearing the full, unsubsidized cost of a new phone, the cost rarely appears upfront; most companies offer payment plans, so that instead of (for example) paying $600 at once, you might be charged an extra $25 per month, every month, for the two-year life of the contract. (That's assuming an interest-free loan, of course; otherwise you might instead have a situation where you pay off that $600 phone in $30 monthly installments, ultimately paying $720 in all.)

Then again: most people — even those who self-identify as frugal — have one or two hobbies or favorite luxuries on which they're willing to splurge: some people might scrimp and save in most things so they can afford to take exotic vacations. And there are plenty of technophiles who like new technology for its own sake, and want to upgrade to the newest and latest technology solely because it's the newest and latest.

Are there enough technophiles – and do they have enough money – to keep buying high-end new-gen products at a rate that won't sink companies' profit margins? It's possible, especially if the new, no-subsidy system also means an end to two-year contracts written to ensure the companies or carriers recoup the cost of the subsidy.

Downsides of two-year contracts

The Motley Fool discussed these downsides of traditional two-year contracts: “A two-year contract essentially guarantees a two-year refresh cycle for its customers. The early termination fee -- which is as high as $350 at some carriers -- essentially locks the buyer into the phone as well as the contract.”

That's not much of a problem for the type of person who views a smartphone (or computer, or any other techno-gadget) as merely a tool or toy, the type who avoids buying Version 1.0 products in lieu of waiting for later, cheaper versions with the “bugs” worked out of the system. But those two-year contracts are very hobbling to technophiles who'd love to upgrade to the newest devices as soon as they come on the market — except they're still locked into a pre-existing phone contract for a number of months. If the end of subsidies also comes with the end of fixed-term contracts, this just might prove a win-win situation for everybody: lower prices for consumers and higher profits for companies.

There's possible bad news on the horizon for the Apple company and its stockholders — not to mention ordinary consumers who want to buy the latest iP...

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Google to repay $19 million in charges incurred by children

Google will repay at least $19 million to the parents of children who incurred illegal charges while using mobile apps downloaded from the Google Play store. Children are not legally able to enter into contracts, a fact that has been widely known for centuries but which has somehow escaped the notice of many online ventures until recently. 

Google has also agreed to modify its billing practices to ensure that it obtains express, informed consent from consumers before charging them -- or their children -- for items sold in mobile apps.

The settlement results from a Federal Trade Commission complaint that accused Google of billing consumers for charges by children made within kids’ apps downloaded from the Google Play store. Many consumers reported hundreds of dollars of such unauthorized charges beginning in 2011, according to the complaint.

Google employees referred to the issue as “friendly fraud” and “family fraud” and tried to tell complaining parents they would have to pursue refunds from the app developer rather than Google, the FTC charged.

Full refunds

Under the terms of the settlement, Google will provide full refunds – with a minimum payment of $19 million – to consumers who were charged for kids’ purchases without authorization of the account holder. 

The settlement requires Google to contact all consumers who placed an in-app charge to inform them of the refund process for unauthorized in-app charges by children within 15 days of the order being finalized. Google must make these refunds promptly, upon request from an account holder.

“For millions of American families, smartphones and tablets have become a part of their daily lives,” said FTC Chairwoman Edith Ramirez. “As more Americans embrace mobile technology, it’s vital to remind companies that time-tested consumer protections still apply, including that consumers should not be charged for purchases they did not authorize.”

It's the third case involving unauthorized in-app charges by children. In January, the Commission announced a settlement requiring Apple to provide full refunds to consumers who were billed for unauthorized charges by children – paying a minimum amount of $32.5 million – and obtain express, informed consent for in-app charges. Amazon is facing similar charges.

In-app charges are a component of many apps available from Google Play and can range from 99 cents to $200. In many apps used by children, users are invited to accumulate virtual items that help them advance in the game, though as the FTC’s complaint notes, the lines between virtual money purchases and real money purchases can be blurred.

Left holding the bill

The FTC’s complaint alleges that Google billed consumers for many such charges by children without obtaining account holders’ authorization, leaving consumers holding the bill.

When Google first introduced in-app charges to the Google Play store in 2011, the complaint alleges, Google billed for such charges without any password requirement or other method to obtain account holder authorization. Children could incur in-app charges simply by clicking on popup boxes within the app as they used it.

According to the complaint, in mid- to late 2012, Google began presenting a pop-up box that asked for the account holder’s password before billing in-app charges. The new pop-up, however, did not contain any information about the charge. Google also did not inform consumers that entering the password opened up a 30-minute window in which a password was no longer required, allowing children to rack up unlimited charges during that time.

During this time, many thousands of consumers complained to Google about children making unauthorized in-app charges, according to the complaint. Some parents noted that their children had spent hundreds of dollars in in-app charges without their consent. Others noted that children buying virtual in-game items with real money were unaware they were causing their parents to be billed.

Google will repay at least $19 million to the parents of children who incurred illegal charges while using mobile apps downloaded from the Google Play stor...

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Samsung's new Gear S may be the smartest smartwatch, at least for now

How smart is your watch? Chances are, it can't do much more than tell you the date and time. But that's about to change, as the computer world begins cranking out smartwatches -- expected to be this year's Big New Thing.

What's so smart about a smartwatch? Well, basically, it's like the difference between a dumb old cell phone -- you know, the kind that just makes phone calls -- and the smartphones that are really miniature personal computers that do nearly everything a desktop does but are so small you can put them in your hip pocket. 

And, just as the first smartphones weren't all that smart, the first smartwatches have been a little on the slow side but that's expected to change over the next few months as Samsung, Google, Apple and the other usual suspects bring their new models to market.

Samsung opened the bidding this week with the intro of its Galaxy Gear S, which the company says "redefines the idea of the smart wearable and the culture of mobile communication. It will let consumers live a truly connected life anywhere, anytime.”

Wearable experience

Burbling on happily, Samsung assures us the Gear S "delivers an up-to-date smart wearable experience with 3G connectivity and wearable optimized features to meet the evolving needs of consumers."

The Gear S, which has a rather startling curved screen, includes 3G as well as Bluetooth and WiFi connectivity, keeping us plugged into social networks, calendars and mobile apps even when the smartphone has slipped out of our hip pocket and gone astray. 

It's worth noting that the Gear S is a standalone device. It doesn't have to be tethered to a smartphone or other device, which was the curse of many earlier wearables

And, yes, Gear S users can make and receive calls directly from their wrist, or get calls forwarded from their smartphones. It will even tell you where to go, providing turn-by-turn pedestrian navigation and keep track of how many calories you burn en route with apps like Nike+ Running.

Snicker if you must but anyone who's managed to get lost while running -- come on, you know who you are -- qualifies as an ideal Gear S purchaser.  

The Gear S goes on sale in October. 

How smart is your watch? Chances are, it can't do much more than tell you the date and time. But that's about to change, as the computer world begins crank...

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HD audio, video calling coming to Verizon Wireless

Telephone connections have never been known for great audio quality. Traveling over copper wire, telephone audio has always operated on very narrow bandwidth.

Cell phones haven't improved audio quality but, if anything, have made it worse. Does “can you hear me now” ring a bell?

But with digital technology, telecom providers are in the process of replacing scratchy, thin voice quality with HD audio. The transformation will eventually come to landlines but it's already arriving in the mobile world.

Verizon Wireless is in the process of rolling out what it calls Voice over LTE, or VoLTE. While it has its limitations, VoLTE should provide noticeable improvement in audio clarity.

Limitation

The limitation has to do with how you'll notice it. First, the call must be placed using an HD-capable Verizon phone using the 4G LTE network.

If the call is placed to a landline or someone on another carrier, or someone using a 3G phone, you won't get the HD quality. And once you've heard both, you'll be able to tell the difference.

Verizon Wireless says VoLTE vastly improves the quality of the call by enhancing clarity of the person who is speaking. At the same time, the technology reduces the background noise.

Here's an example. If you've listened to a talk radio program, you know there is a distinct difference in the audio quality of the host and that of the caller. HD audio will produce telephone quality closer to the sound of the radio host, who is sitting in a studio speaking into a microphone.

Video calls

What may be more important to some mobile customers is the video component of VoLTE. Verizon Wireless says video calling is simplified when using VoLTE technology.

The contact list in the user's phone will clearly indicate, with a video camera icon next to the name, who can receive a video call. By tapping on the phone the user initiates the call.

Suppose you don't want to receive a video call. Recipients of these calls can easily switch back and forth from video to voice only.

Again, the video side of VoLTE works exactly like the voice feature – both parties to the call must be on Verizon's 4G LTE network and be using phones enabled for VoLTE.

Advanced Calling 1.0

The VoLTE package will be a service upgrade when it is offered in the coming weeks. The package is called Advanced Calling 1.0. Verizon Wireless says HD Voice will be billed according to your existing calling plan.

AT&T also have HD audio plans in the works and may roll them out before the end of the year. Earlier this year T-Mobile said HD was available on some of its phones.

Telephone connections have never been known for great audio quality. Traveling over copper wire, telephone audio has always operated on very narrow bandwid...

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California kill-switch bill worries civil-liberty advocates

The new California law mandating a “kill switch” option on all smartphones made or sold in the state is intended to cut down on smartphone theft, by giving owners the option to remotely disable, or “kill,” their phones. The idea, of course, is that thieves will be less likely to steal phones which they know will soon be rendered useless.

But privacy and civil-liberty advocates worry the kill switch mandate could lead to more nefarious outcomes: instead of phone owners killing their phones to render them useless to thieves, hackers could kill the phones remotely, whether as a prank or, more ominously, to prevent an intended victim from calling 911. There's even greater concern that the police or other government-backed authority might use the kill switch to shut down protests, or prevent protesters from having any contact with the outside world.

The California bill, SB 962, says in part: “Any request by a government agency to interrupt communications service utilizing a technological solution required by this section is subject to Section 7908 of the Public Utilities Code.”

And what does that mean? Last June, shortly after SB 962 was first proposed, the Electronic Freedom Foundation (EFF) sent a letter opposing it on two grounds, which it described as “'lock in' and legitimizing a technical means.”

The EFF said that “Lock in describes when a particular technology is frozen in place due to a technological mandate, so other technologies — perhaps better technologies — have no chance of competing.” In other words, perhaps the mandate for this particular kill-switch phone-security measure might discourage the development of other, better security measures.

BART protests

But EFF's more serious concern is the “potential for abuse. We were especially concerned with giving government actors any more ability to shut off cell phones after wireless service was shut off during the 2011 BART protests.”

In 2011, after learning that people in the San Francisco area planned to protest the then-most-recent fatal police shooting, the Bay Area Rapid Transit (BART) police shut down underground cell phone service, intending to halt the protest. An attorney for the ACLU said at the time “All over the world, people are using mobile devices to protest oppressive regimes, and governments are shutting down cell phone towers and the Internet to stop them … It's outrageous that in San Francisco, BART is doing the same thing.”

In response to the shutdown, California passed Public Utilities Code § 7908 which, according to the EFF, “took great steps to prevent law enforcement from cutting off communications services, though it sunsets [expires] at the end of this decade. PUC § 7908, however, also legitimized a legal process for law enforcement to interrupt communications. SB 962, by mandating kill switches in every phone, would legitimize a technical means.”

EFF had hoped that, at the very least, if the kill switch mandate became law, it would explicitly limit this power to the phone's rightful owner. But this did not happen.

Hanni Fakhoury, an EFF attorney, discussed other scenarios in an interview with Wired, saying that the kill switch mandate “invites a lot of mischief. You can imagine a domestic violence situation or a stalking context where someone kills [a victim's] phone and prevents them from calling the police or reporting abuse. It will not be a surprise when you see it being used this way.”

The new California law mandating a “kill switch” option on all smartphones made or sold in the state is intended to cut down on smartphone theft...

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California passes smartphone "kill switch" law

The smartphone “kill switch,” which California just passed into law, is one of those technological innovations whose benefit is so obvious, it's hard to imagine why anyone would be opposed to its implementation.

A kill switch allows smartphone owners to remotely disable or “kill” their phones, in the event that they are stolen. The ultimate intent, of course, is to discourage such thefts: thieves won't bother stealing phones which they know will be rendered useless.

Samsung developed a kill switch app in 2013, though smartphone companies initially resisted it; that December, New York's attorney general demanded to know why.

A cynic might speculate: “It's because the phone companies figure 'Hey, if you can't get your stolen phone back you'll have to buy a new one, which means more money for us. Whoopee!'” Or perhaps there's a useful valid consumer-protection rationale, only the phone companies forgot to issue the press release explaining it.

Congress dawdles

In February 2014, Congress proposed a bill that would require kill switch options on all smartphones sold in the U.S.; this proposal has not made it into law.

But California is unwilling to wait for a national bill. This week the state passed a law mandating kill-switch options on all smartphones manufactured and sold in the state after July 1, 2015.

California is the second state to pass such a kill-switch law; Minnesota passed a similar one in May.

Even if your phone does have a kill switch option (or you buy a phone that does), remember: the mere fact that your phone has this option won't help you unless you actually activate it. It's like any other anti-theft device: the best and strongest lock in the world won't protect your stuff if you forget to shut the door.

The smartphone “kill switch,” which California just passed into law, is one of those technological innovations whose benefit is so obvious, it's hard to im...

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Security warning: apps might be riskier than you think

One bad apple can spoil the whole bunch — and it look like one bad app can, too. Security researchers from the University of Michigan and the University of California/Riverside have discovered that certain types of mobile devices are riskier than previously believed.

Zhiyun Qian of UC Riverside's Computer Science and Engineering Department, Z. Morley Mao from the University of Michigan, and Mao's Ph. D. student Qi Alfred Chen all co-wrote a paper titled “Peeking into your app without really seeing it: UI state interference and novel Android attacks.”

To put the paper's results into layman's terms: the researchers believe they've discovered a previously unknown security weakness in Android, Windows and iOS mobile operating systems. There's a widespread belief that apps are self-contained – in other words, one app on your phone can't interfere with other apps.

But this might not be true. Qian said, “The assumption has always been that these apps can’t interfere with each other easily …. We show that assumption is not correct and one app can in fact significantly impact another and result in harmful consequences for the user.”

App malware

It's basically the app equivalent of malware: hackers convince you to download a seemingly harmless app, perhaps offering pretty new background wallpaper for your phone. But the app is actually malicious, and once it's installed, according to UC/Riverside, “the researchers are able to exploit a newly discovered public side channel — the shared memory statistics of a process, which can be accessed without any privileges. (Shared memory is a common operating system feature to efficiently allow processes share data.)”

The researchers made and posted some videos showing in detail exactly how the process works; they were successful in attacking Gmail and H&R Block apps 92 percent of the time. Amazon, however, seems to have the best security of the seven companies they tested; only 48 percent of attempts against Amazon were successful.

The researchers are presenting their findings before the Usenix Security Symposium in San Diego today.

One bad apple can spoil the whole bunch — and it look like one bad app can, too. Security researchers from the University of Michigan and the University of...

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Sprint and T-Mobile want each other's customers

The current rivalry between Sprint and T-Mobile provides more evidence that a saturated market is a wonderful thing for consumers: last January, we told you how smartphone-industry analysts were saying that the technology has been around long enough to thoroughly saturate the market — with the exception of kids whose parents think they're too young, pretty much everybody who wants a smartphone has one by now.

Consumers rate Sprint PCS

Thus, with so few “new” potential smartphone customers out there, companies looking to expand their base must try “poaching” pre-existing smartphone users from other companies — say, by offering better prices or services than their competitors.

And The Wall Street Journal reports that Sprint and T-Mobile, two companies which had talked about merging together into one mega-company earlier this summer, are now engaging in a fierce battle to steal each other's customers (with the result that, as of Aug. 22, both of them saw slight drops in their stock values):

Sprint unveiled this week a new pricing strategy for individual and family plans that offer more data and come with incentives to grab customers from rivals. T-Mobile is firing back with a referral program aimed at doing the same.

Signing bonus

So if you're with one company, there's a good chance you can save money and get a better deal by swiching to the other. Such competition is nothing new. Earlier this year, for example, T-Mobile offered to pay cancellation fees for new customers who canceled old phone contracts to sign on with them.

Consumers rate T-Mobile Billing Disputes

At the time, T-Mobile's chief competitor was AT&T, whereas Sprint's chief rival was Verizon. Sprint and T-Mobile generally didn't try “poaching” each other's customers, because the two companies used technologies different enough that switching a user from one network to another was very difficult.

Indeed, earlier critics of the proposed Sprint and T-Mobile merger were quick to point that out. In January, when the proposal was new news, a tech writer for FierceWireless.com published a list of “6 reasons the Sprint/T-Mobile merger is a terrible idea.” Reason number 4 was “It would be immensely complicated to combine the two networks,” and rhetorically asked:

Seven months after shutting down the Nextel network, does Sprint really need to worry about integrating T-Mobile's GSM/HSPA+/LTE network with its CDMA/LTE network?

Moreover, the only major spectrum band that Sprint and T-Mobile have in common is 1900 MHz, which Sprint uses for CDMA and LTE and T-Mobile uses for HSPA+ service. Not to mention that T-Mobile is busy migrating MetroPCS customers from CDMA to HSPA+ and LTE-capable phones.

So would the companies keep CDMA or GSM? Would they deploy LTE across AWS like T-Mobile is doing or across 1900 MHz/800 MHz/2.5 GHz like Sprint? These questions would be mind-bogglingly complicated to sort it out....

Indeed, for a non-tech professional, it's mind-bogglingly complicated just to figure out what those questions mean, let alone what the answers should be. But for now, with T-Mobile and Sprint remaining separate and fiercely competitive companies for the time being, it appears that both companies have either figured something out (or are making it up as they go along).

The current rivalry between Sprint and T-Mobile provides more evidence that a saturated market is a wonderful thing for consumers: last January, we told yo...

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Samsung, T-Mobile, MetroPCS sued over 911 service

Two years ago, in September 2012, the family of a murdered woman named Deanna Cook filed suit against the city of Dallas and its police department.

The lawsuit claims that when Cook called 911 to report that her estranged husband broke into her house and was attacking her, dispatchers waited 10 minutes before sending any officers to Cook's house, and furthermore than the officers took 50 minutes to arrive, after stopping at a 7/11 to make “personal purchases” and at another home to inspect a burglar alarm.

This week, Cook's family also sued Samsung and the cell-phone service providers MetroPCS and T-Mobile over their handling of Cook's ill-fated 911 call and location information.

The family filed the new suit on Aug. 13. Two days later, Courthouse News Service  reported that, according to the new lawsuit, “Cook died as the 911 operator and police dispatcher were unable to timely obtain Ms. Cook's home address, leading to a delay in responding to her life-threatening 911 call. This delay prohibited police and first responders from timely providing police protection and/or medical attention to Ms. Cook, thus allowing her to die.”

The suit says that during the 911 call, while Cook was “screaming at the top of her lungs in fear,” an operator told her “MetroPCS doesn't always have addresses.”

Since 2006, FCC guidelines for wireless carriers have required that mobile phone companies provide 911 operators with longitude and latitude coordinates (to within 300 meters) for any mobile 911 callers.

wo years ago, in September 2012, the family of a murdered woman named Deanna Cook filed suit against the city of Dallas and its police department....

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FCC chair grills more wireless carriers about throttling

Al Gore was laughed at when he and his lawyers debated the meaning of "is" in a legal brief. Now Verizon and other wireless carriers have gotten themselves ensnared in a debate about the meaning of "unlimited." Except no one's laughing this time.

Federal Communications Commission Chairman Tom Wheeler, in particular, is not amused. Last month Wheeler worked over Verizon when it revealed that it was planning to "throttle" the top 5% of its data users who are on unlimited data plans beginning in October -- meaning it would slow down their data connection to discourage them from using the service they're paying for.

But how, Wheeler and millions of others asked, can you penalize someone for using too much of something that is sold as unlimited? Admittedly, the whole unlimited thing put any number of all-you-can-eat buffet restaurants out of business but most of them went gracefully; they didn't walk around snatching drumsticks out of their patrons' hands.

Wheeler found it "deeply troubling," and Verizon snapped back that it was deeply disturbed at his attitude, saying basically that everybody else is doing the same thing, calling it a "widely accepted" practice. This, of course, is not always a good defense. Just try it next time you're hauled into traffic court.

Wheeler isn't accusing Verizon of lying but he'd like to find out if the other carriers really are throttling their customers and has asked AT&T, Sprint and T-Mobile to outline their policies.

Truth in advertising

You don't have to look back very far to see how this all came about. A few years ago, Verizon and the others wanted to find a way to charge a little bit more for essentially the same thing, so they came up with the "unlimited" label. Customers who agreed to pay a fixed amount per month wouldn't have to worry about going over their data limits because they would be, well, unlimited. 

But like hungry athletes at an after-game picnic, consumers who paid extra for their unlimited service began packing it in -- watching movies, TV shows, making Skype calls and doing who knows what else.

So now Verizon has simply turned the world inside out: if you want to use more data, you need to buy a limited-data plan which is, paradoxically, more expensive than the unlimited plan.

Verizon argues it is within its rights to do this because its contracts contain a clause saying Verizon can change the terms whenever it feels like it. 

It will be interesting to see whether the FCC allows this truly remarkable inside-the-looking-glass reasoning to stand. Just don't stay online too long waiting for the answer. Verizon may throttle you.

Al Gore was laughed at when he and his lawyers debated the meaning of "is" in a legal brief. Now Verizon and other wireless carriers have gotten themselves...

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Verizon and FCC argue over limits on "unlimited" service

If you have a 4G LTE smartphone with an "unlimited" data plan from Verizon Wireless, be warned: starting in October, Verizon wants to start throttling your data if you're among the top 5% of data users in a given month when your local cell network is undergoing high demand and you have a month-to-month agreement in lieu of a long-term contract.

Sound confusing? Let's backtrack a bit: what ordinary users call data throttling is part of what Verizon Wireless calls “network optimization” (which, according to Verizon, is absolutely not the same thing as throttling; more on that later).

The Verizon Wireless webpage explaining its “Network optimization practices for customers with unlimited data plans” kicks off with marketing-speak about the “reliable” and “high-quality” service it seeks to give its customers:

You rely on our high quality wireless communications service and we strive to continually provide it for you.

Ensuring Reliability. With tens of millions of customers, it’s our responsibility to upgrade and improve our network, services and practices, so you can continue to trust the network. With this in mind, we’ve implemented Network Optimization practices that will affect a very small percentage of customers.

And what exactly are these practices?

Optimizing Our Network. Our Network Optimization practices for customers with unlimited data plans ensure that you can count on the reliable network you expect. To optimize our network, we manage data connection speeds for a small subset of customers – the top 5% of data users on unlimited data plans – and only in places and at times when the network is experiencing high demand. This ensures that all customers have the best data experience possible.

“Manage data connection speeds” in the sense of “lowering those speeds” sounds an awful lot like data throttling. But the frequently asked questions lower down on that same Verizon Wireless page assures customers that it isn't:


Is this the same as throttling?
No, this is not throttling.

How is this different than throttling?
The difference between our Network Optimization practices and throttling is network intelligence.  With throttling, your wireless data speed is reduced for your entire cycle, 100% of the time, no matter where you are. Network Optimization is based on the theory that all customers should have the best network possible, and if you’re not causing congestion for others, even if you are using a high amount of data, your connection speed should be as good as possible. So, if you’re in the top 5% of data users, your speed is reduced only when you are connected to a cell site experiencing high demand. Once you are no longer connected to a site experiencing high demand, your speed will return to normal. This could mean a matter of seconds or hours, depending on your location and time of day.

Deeply troubled

Verizon first announced the proposed changes in late July, which inspired FCC Chairman Tom Wheeler to send Verizon's president and CEO Daniel Mead a July 30 letter (available in .pdf form here) saying he was “deeply troubled” by the news:

"Reasonable network management" concerns the technical management of your network; it is not a loophole designed to enhance your revenue streams. It is disturbing to me that Verizon Wireless would base its "network management" on distinctions among its customers' data plans, rather than on network architecture or technology. ... I know of no past Commission statement that would treat as "reasonable network management" a decision to slow traffic to a user who has paid, after all, for "unlimited" service.

Wheeler then asked Mead/Verizon to answer three questions:

1. What is your rationale for treating customers differently based on the type of data plan to which they subscribe, rather than network architecture or technological factors? In particular, please explain your statement that, "If you're on an unlimited data plan and are concerned that you are in the top 5% of data users, you can switch to a usage-based data plan as customers on usage-based plans are not impacted."

2. Why is Verizon Wireless extending speed reductions from its 3G network to its much more efficient 4G LTE network?

3. How does Verizon Wireless justify this policy consistent with its continuing obligations under the 700 MHz C Block open platform rules, under which Verizon Wireless may not deny, limit, or restrict the ability of end users to download and utilize applications of their choosing on the C Block networks; how can this conduct be justified under the Commission's 20120 Open Internet rules, including the transparency rule that remains in effect?

Those FCC Open Internet rules, also known as net neutrality, “established high-level rules requiring transparency and prohibiting blocking and unreasonable discrimination to protect Internet openness,” according to the FCC Open Internet website.

The very next day, July 31, Verizon's “News Center Team” posted this “Message Regarding FCC Letter” which said in its entirety:

“We’re reviewing the letter from the FCC and will respond officially to Chairman Wheeler’s questions in the timeframe requested. What we announced last week was a highly targeted and very limited network optimization effort, only targeting cell sites experiencing high demand. The purpose is to ensure there is capacity for everyone in those limited circumstances, and that high users don't limit capacity for others.”

Out-sized effect

But late in the evening of Aug, 4, the Wall Street Journal reported that Kathleen Grillo, Verizon's senior vice president of federal regulatory affairs, responded to the FCC on Aug. 1, saying that their decision was reasonable against certain unlimited data users who use a “disproportionate amount of network resources and have an out-sized effect on the network …. Not surprisingly, many of these heaviest users of the network are on unlimited data plans.”

(Technically, this does address the FCC's question about limited data use to customers who think they've paid for “unlimited” data; it just doesn't seem to answer the question, merely offer a tautology: unlimited data users sometimes use lots of data.)

Grillo's response to the FCC also said: “Unlike subscribers on usage-based plans, [unlimited data-plan users] have no incentive [to reduce their usage] during times of unusually high demand.”

Again, sounds like a tautology: people who pay for unlimited data use have less incentive to limit their data use than people who pay rates directly based on how much data they use.

Grillo's letter also said: “Rather than an effort to 'enhance [our] revenue streams,' our practice is a measured and fair step to ensure that this small group of customers do not disadvantage all others in the sharing of network resources.”

The letter also said that other carriers do the same thing, and wondered why the FCC singled Verizon out. (Possible answer: because, as mentioned in the FCC's letter, Verizon is operating on the Upper C Block part of the network, which is subject to Open Internet rules?)

The FCC has not yet responded, but says it is reviewing the letter carefully.

If you have a 4G LTE smartphone with an "unlimited" data plan from Verizon Wireless, be warned: starting in October, Verizon wants to start throttling your...

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In-flight cell-phone bans coming to the USA

It looks like in-flight cell phone calls will be the latest addition to the long list of things banned on airline flights in America. However, unlike most such bans, the rationale for this one is not “safety” or “terrorism prevention,” but instead is based on the idea that being trapped in a narrow metal tube listening to other passengers talk on their cell phones is annoying enough to require actual laws against it.

Of course, the ban on in-flight cell phone use is nothing new; for years, the FCC banned in-flight cell phone calls out of fear that they'd overwhelm ground-based cell-phone capacity. (In the early days of the technology, that might have been a genuine concern.)

But last December, the FCC said that this justification for banning in-flight cellular use was no longer necessary – though it did not go so far as to lift the ban. Rep. Bill Shuster (R-Pa.), chairman of the House Transportation and Infrastructure Committee, responded almost immediately by announcing his intention to propose a bill banning in-flight cell phone chats.

Quick & quiet

The committee voted in favor of the bill the following February. Shuster said at the time that he supported the use of cell phones for Internet access or sending and receiving text messages, but not for voice chat: “As anyone who flies knows, airplane cabins are noisy, crowded and confined … Most passengers would like their flights to go by as quickly and quietly as possible.”

After the February vote, the committee's bill went before the full House of Representatives.

Yet this probably upcoming ban is coming not from Congress but from the Department of Transportation.

The Wall Street Journal reported this weekend that DOT General Counsel Kathryn Thomson gave a speech to the International Aviation Club in D.C. and, according to witnesses, said that the DOT plans to take “the next step” in ensuring a formal ban on in-flight voice calling.

A DOT spokeswoman later confirmed that the agency is preparing “a notice of proposed rulemaking” to come out this December.

The airlines, for their part, say the DOT is overstepping ts authority, and the companies themselves should decide whether or not to offer in-flight cell phone service. Many airlines already have their own anti-calling policies, though others might (for example) want to experiment with dividing their planes into different sections – a no-phone quiet zone over here, and a noisy phones-allowed section over there – rather than have any and all options legally forbidden.

Whether you are allowed to make cell phone calls or not, however, remember to make sure your phone battery is fully charged before you try boarding a plane, or else the TSA will think you're smuggling a bomb.

It looks like in-flight cell phone calls will be the latest addition to the long list of things banned on airline fligh...

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FTC finds shopping apps short on disclosure

Shopping apps are OK as far as they go, but a study by the Federal Trade Commission says they often don't go far enough in disclosing important information to consumers.

What kind of information? Well, how the apps manage payment disputes, how the customer's personal data is handled and so forth.

“As mobile apps become more central to the shopping experience, it’s important that consumers have meaningful information about how those apps work before they download them,” said Jessica Rich, director of the FTC’s Bureau of Consumer Protection. “Consumers should not be left in the dark about their potential liability for erroneous or unauthorized charges or about the way shopping apps handle their data.”

The report, “What’s the Deal? An FTC Study on Mobile Shopping Apps (pdf),” looked at some of the most popular apps used by consumers to comparison shop, collect and redeem deals and discounts, and pay in-store with their mobile devices. It builds on the findings of a 2012 workshop on mobile payments, which raised concerns about consumers’ potential financial liability as well as the privacy and security of their data.

121 apps

FTC staff surveyed a total of 121 different shopping apps across the Google Play and Apple App Stores. The survey included 47 price comparison apps, which let consumers compare prices on a particular item in real-time; 50 “deal” apps, which provide consumers with coupons or discounts; and 45 in-store purchase apps, which enable consumers to use their phones to pay for goods they purchase in physical stores. Several apps were found in more than one category.

The report makes a number of recommendations to companies that provide mobile shopping apps to consumers:

1. Apps should make clear consumers’ rights and liability limits for unauthorized, fraudulent, or erroneous transactions.

2. Apps should more clearly describe how they collect, use, and share consumer data.

3. Companies should ensure that their data security promises translate into sound data security practices.

The report also recommends that companies, whose apps promise consumer safeguards for their data, follow through on those promises. Specifically, the report recognizes that technology advances found in smartphones can offer the potential for increased data security and encourages all companies to provide strong protections for the data they collect.

Consumer awareness

Beyond recommendations for companies, the report also urges consumers to closely examine the apps’ stated policies on issues like dispute resolution and liability limits, as well as privacy and data security and evaluate them in choosing which apps to use.

The report also notes that when apps do not provide that information, consumers should consider using alternative apps, or in the case of missing dispute resolution policies, limit the dollar amount used to fund stored value accounts.

...

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Caution: Wiping data from your Android phone may not work

You probably know that before you sell or give away your old computer, smartphone or other data-recording communications device, you're supposed to “wipe it clean,” or get a factory reset — something to erase all of your data from it.

But this month, the security software company Avast made a disturbing discovery about Android smartphones: apparently you can't wipe them clean. Even if the phones undergo a full factory reset, data can still be retrieved form them.

A digital forensics team at Avast bought 20 used smartphones on eBay. All had been wiped clean, factory reset, or otherwise treated so that their original owners figured their data was no longer on them.

Yet, from those 20 phones, the Avast team was able to extract more than 40,000 photos (including at least 250 nude selfies), hundreds of email and text messages, a completed loan application (with all the personal financial data therein), and the identities of four of the phones' previous owners—and remember, that's four from a pool of only 20 phones.

Off the shelf

What's even more frightening is that Avast's team didn't have to invent some fancy new digital forensics tools to get all this information; Avast's mobile division president Jude McColgan said his team only used readily available, off-the-shelf data-retreival tools.

So, if you have an old Android which you want to replace, must you abandon all hope of selling or donating the old phone, and destroy it instead? Not exactly; there is a way to truly erase all your data, but it's extremely time-consuming (and not guaranteed 100 percent effective anyway).

If you have an erased or factory reset phone and want to hobble any digital forensics team seeking to retrieve your data, your best best is to overwrite it with new data: save a bunch of innocuous stock photos or videos (they don't even have to be your own) onto the phone. Override your previous personal emails and messages by filling your phone with innocuous or even meaningless messages.

To make an analogy: think of your phone or computer memory as a sheet of paper, and any saved data is like pencil-marks you made on it. You can use an eraser to wipe away your pencil-writings and make that paper “blank” again — but a person willing to take the time and effort could probably still look at that “blank” paper and reconstruct at least some of what you erased. However, reading your erased writings will be much harder, hopefully impossible, if you then write or at least scribble new pencil marks all over the site of your old erased ones.

Of course, the main problem with this analogy is that you can look at that piece of paper and see at a glance whether or not your new pencil markings obscure the old ones, but unless you're a digital forensics expert you can't necessarily know whether all your previously erased data has been completely overwritten.

You probably know that before you sell or give away your old computer, smartphone or other data-recording communications device, you're supposed to “...

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Smartphone under the pillow sets girl's bed on fire

As early as 2005, the feds were warning consumers about the fire hazards and related dangers posed by rechargeable batteries – which are now ubiquitous in smartphones, laptopsand sundry other personal electronic devices.

For example: in March 2005, the Consumer Product Safety Commission issued a set of “cell phone safety tips” and the first item on the list was this: never use incompatible cell phone batteries and chargers. Whichever brand of phone you have, stick with manufacturer-approved batteries rather than buy from third-party sources, as the manufacturers can't guarantee that third-party devices are compatible with their appliances.

Last week, a family in Texas had a scary reminder of this, when a 13-year-old girl's smoldering smartphone caught her bedding on fire while she was asleep. Luckily, the girl was unhurt, and the fire put out before it destroyed anything more than her bed and bedding (plus the phone).

Dallas News | myFOXdfw.com

Ariel Tolfree told the Fox News affiliate in Dallas/Fort Worth that she fell asleep with her Samsung Galaxy S4 on her bed, and at some point in the night it wound up under her pillow. She woke up briefly when she thought she smelled something smoldering, but went back to sleep only to wake up again some indeterminate time later.

“I didn't think much of it, so I went back to sleep, and then I woke up again and [the smell] was more prominent,” Tolfree said.

Tolfree's father, Thomas, suspects that the smartphone overheated, which made the battery swell and start a fire. He also admitted that the phone had a third-party battery, according to the Fox4 report.

Ignored warning

A Samsung spokesman noted that the user guide for the S4 specifically states that covering one of their devices with bedding or other material could restrict airflow and cause a fire.

Samsung has agreed to replace Tolfree's damaged bed and bedding, and requested that the damaged phone be sent to them so they can investigate. Ariel Tolfree, meanwhile, said she learned that people should not sleep with their smartphones in their beds, but keep their phone on a nightstand instead.

In addition to this, you should also make sure that, whatever brand of phone you have, you only use manufacturer or carrier-recommended batteries, chargers and other accessories. And don't cover your phone, laptop or any other battery-rechargeable device with blankets, pillows or anything else that restricts airflow and traps heat.

Finally: make sure you look for and read any safety warnings in your owner's manual. Even if the manufacturers wanted to list those warnings, cigarette-style, on the boxes, there probably isn't enough room to print them all.

As early as 2005, the feds were warning consumers about the fire hazards and related dangers posed by rechargeable batteries – ubiquitous in phones...

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Calling 9-1-1 on a cell phone may leave responders in the dark

With the vast proliferation of mobile phones in less than two decades, more consumers are deciding they don't need a traditional landline phone.

The Centers for Disease Control and Prevention (CDC) found in late 2013 that 2 out of 5 U.S. homes – 41% – didn't have a landline but relied only on a wireless phone. That means in case of emergency, these consumers would have to call 9-1-1 on their mobile phone and hope their location showed up on the dispatcher's screen.

Often, it doesn't. A group called The Find Me 9-1-1 Coalition used the Freedom of Information Act (FOIA) to obtain data from the Federal Communications Commission (FCC) about wireless 9-1-1 calls made in Washington, D.C.

It found that from December 2012 to July 2013, 9 out of 10 wireless 9-1-1 calls made in DC were delivered without the accurate location information needed to find callers who are lost, confused, unconscious or otherwise unable to share their location.

This location information is latitude-longitude data called “Phase II” information. Emergency 9-1-1 systems across the country have updated their systems over the last 20 years to automatically display this data when a call comes in.

But the system was designed for landline telephone systems. While they are supposed to work with some wireless devices, The Find Me 9-1-1 Coalition says the information can be useless, showing only the cell tower location nearest to the caller.

Alarming

"These results reveal an alarming public safety crisis," said Jamie Barnett, former Chief of the FCC's Public Safety and Homeland Security Bureau and Director of the Find Me 9-1-1 Coalition. "When 9 in 10 emergency callers in our nation's capital cannot be located on wireless phones, we know that the requirements for location accuracy must be updated immediately.”

The FCC has, in fact, proposed new rules to improve emergency call systems to more accurately pinpoint the location of wireless callers.

“This (data) should eliminate any doubt about the importance of rapid adoption of that rule," Barnett said.

The problem is the technology used by more wireless carriers, something called A-GPS. It depends on a direct line of sight to satellites, so it might work fine if you called 9-1-1 from the middle of a grassy meadow. But it often fails in indoor locations or dense urban areas like DC.

Matter of life and death

The FCC has proposed to rectify that with a new rule – Proceeding 07-114 – requiring wireless carriers to provide accurate location data for indoor calls within two years. By the FCC's own estimates, implementing the rule could save 10,000 lives each year with faster emergency response times.

"The nation's capital faces unique security issues, and it's critical that 9-1-1 callers in DC be quickly located in an emergency," Barnett said. "Unfortunately, the safety of our residents and visitors is being put at risk on an ongoing basis when 9-1-1 cannot identify their locations to send help.”

The FCC data also provides a breakdown by carrier of wireless 9-1-1 calls. There was a wide variation among carriers for delivery of accurate “Phase II” information.

Verizon and Sprint had best results

Verizon had the best record, with 24.6% of its 9-1-1 calls delivering accurate location information. Sprint was second, at 23.3%.

After that there was a significant fall-off. T-Mobile delivered only 3.2% and AT&T just 2.6%.

The Coalition says the people who answer those 9-1-1 calls also want the system improved.

It says a survey of first responder call centers found that 99% supported the FCC's proposed requirements for indoor location accuracy within two years, and another 99% said the adoption of that rule was "critically" or "very" important for public safety in their communities.

If you have the need to call 9-1-1 from your cell phone during the next 2 years, be sure to start off by telling the dispatcher your precise location. Otherwise, they might not know.

With the proliferation of mobile phones in less than two decades, more consumers are deciding they don't need a traditional landline phone.The Centers fo...

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Consumers admit to being hooked on their smartphones

It's not exactly news that consumers are increasingly dependent upon their mobile devices. One only has to observe people in restaurants, movie theaters and walking down the street to know that.

But a survey conducted by Bank of America is a bit surprising, in that nearly half the consumers questioned confessed they probably couldn't go a day without their smartphone.

Many of the respondents said their mobile device was more important than other things they probably couldn't do without, like coffee and television.

The survey found that connectivity on the go is so critical the smartphone falls below only the Internet and personal hygiene when ranked by importance to people’s daily lives. To put it in context, 91% said their mobile phone is just as important as their car and deodorant.

When asked what they would give up to regain access to their mobile phone, nearly 4 in 5 – 79% – said they would forgo alcohol or chocolate.

Sudden dependence

How did this dependence develop so quickly? Remember, these devices for the most part didn't even exist before 2007. Perhaps for that reason, the survey found that the youngest Millennials, between the ages of 18 and 24 and who don't really recall a time before smartphones, are most dependent.

Bank of America is interested in this topic because it, like all banks, is actively encouraging customers to use mobile banking services. On that point its survey did not disappoint.

“Mobile phones have changed the way we live our daily lives, and that extends to our finances,” said Marc Warshawsky, senior vice president and mobile solutions executive at Bank of America. “Bank of America now has more than 15 million active mobile banking users who access their accounts on a mobile device over 165 million times per month. We’ve seen this number continue to grow and recently the number of monthly mobile banking logins surpassed online banking logins for the first time.”

Addiction?

Not everyone sees consumers' near-obsession with their smartphones as a positive trend. Dr. Ira Hyman, a professor of psychology at Western Washington University, writes in Psychology Today that being dependent on your device is one thing, but if you are unable to control your use of it, that dependence has crossed over to addiction.

He describes an experiment in which college students were asked to imagine receiving a text from a friend, asking for a reply “when you can.” The students could immediately text back or, if they waited for a period of time before replying, they would receive a cash reward.

“Most students wanted to text now and pass on the extra money that would come with waiting,” Hyman writes. “Texting immediately was more important than extra money.”

College professors will tell you it is impossible to get students to put away their smartphones in class. When these students get jobs and join the workforce, this addiction then becomes their employers' problem.

Why fight it?

A researcher at Kansas State University suggests businesses give in to the inevitable and encourage employees to take short breaks during the day to check Facebook or play a game. Sooyeol Kim, doctoral student in psychological sciences, found that allowing employees to take smartphone microbreaks may be a benefit — rather than a disruption — for businesses.

By studying 72 full-time workers from various industries, Kim said he discovered that employees only spend an average of 22 minutes out of an eight-hour workday playing on their smartphones. He also found that employees who take smartphone breaks throughout the day are happier at the end of the workday.

"A smartphone microbreak can be beneficial for both the employee and the organization," Kim said.  

It's not exactly news that consumers are increasingly dependent upon their mobile devices. One only has to observe people in restaurants, movie theaters an...

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Feds charge spammers also engaged in wireless cramming

The Federal Trade Commission has added new charges of mobile cramming to a complaint the agency previously filed against a group of scammers who allegedly sent millions of unwanted text messages and robocalls to consumers.

The amended complaint adds the mobile cramming charges to the original allegations that the defendants used text messages promising free $1,000 gift cards and iPads as a way to deceive consumers into signing up for costly subscriptions and giving up personal information.

When consumers followed links in the spam text messages, they were prompted to enter personal information, including their mobile phone number. The defendants told consumers that the personal information was necessary to ship them the free prize.

But in fact, the complaint charges, the defendants used the personal information for several other purposes, including placing robocalls to consumers. Many consumers who entered their personal information allegedly were then prompted to “confirm” their mobile phone number and were then sent a text message telling them to enter a PIN number on the defendants’ website in order to “claim their prize.”

The amended complaint alleges that, in fact, by confirming their mobile phone number and entering the provided PIN, consumers were being signed up for unwanted premium text messaging services, resulting in a charge of $9.99 per month on their mobile phone bill.

According to the FTC’s amended complaint, consumers were not given adequate notice that confirming their number would lead to monthly charges – this notice appeared only in small print at the bottom of the screen or in a separate hyperlinked page.

Two defendants, Burton Katz, also doing business as Polling Associates, Inc. and Boomerang International, LLC, and Jonathan Smyth, also doing business as Polling Associates, Inc., are accused of overseeing the mobile cramming operation along with the creators of the websites.

© Natalia Merzlyakova - Fotolia.comThe Federal Trade Commission has added new charges of mobile cramming to a complaint the agency previously file...

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The smartphone: turning the world upside down

Let's go back in time, to a more primitive time, when life was simpler. Like 2007.

In 2007 you could still buy a house for no money down. The economy was headed toward the Great Recession but hadn't quite arrived.

And consumers carried “flip” cell phones that made voice calls and sent and received crude text messages.

In late June 2007 Apple's Steve Jobs introduced the first iPhone, setting in motion a disruptive force that since then has turned the world upside down.

Not just hype

“Every once in a while, a revolutionary product comes along that changes everything,” said the late Apple co-founder as he introduced the first iPhone.

This wasn't simply marketing hype. This actually turned out to be true. In 2007 almost no one carried what today we think of as a smartphone. Five years later nearly everyone did.

In 2007 Motorola, Blackberry, Nokia and Palm all made phones that had built-in keyboards and allowed users to send and receive data, technically falling into the category of smartphone. All were mostly mobile email devices, favored by business users.

The iPhone, and the Android devices that followed, went beyond email and allowed users to easily access the Internet through simple, easy-to-use apps. The devices also contained video and still cameras and could download and store hours of music.

Here today, gone tomorrow

In introducing the iPhone, Apple essentially made its iPod music player obsolete. But that was not the extent of the smartphone's disruption.

In 2006 the Flip camera appeared on the scene. It was a small, point-and-shoot video camera that didn't use tape, but digital files that could be transferred to a computer.

It was easy to carry, easy to use and proved to be such a popular product that tech giant Cisco Systems bought the company in 2009 for $590 million. But by 2010 smartphones all had video cameras with higher resolution, better optics – and didn't require you to carry a separate device.

In one of the fastest flame-outs in business history, Cisco pulled the plug on the Flip camera, just two years after buying the company.

In 2007 GPS navigational systems were popular after-market additions to cars. The devices sat on dashboards, providing turn-by-turn directions.

By 2010 consumers with smartphones didn't need to buy these separate navigational devices since they came as a standard app on their smartphone.

For decades if you wanted to save money, you went through the newspaper and clipped coupons. When coupon sites began springing up on the Internet, consumers found it easier to save.

With smartphones, a growing number of “daily deal” sites began offering coupons sent to consumers' mobile devices. Some even tapped into the users GPS and sent coupons for businesses near the user's current location.

Making Uber possible

These apps have had a disruptive impact of existing businesses, but perhaps none more disruptive than Uber. Uber is an app that matches people who need rides with drivers.

By downloading the Uber app and loading credit card information, consumers may summon a ride with the touch of a button. No actual money changes hands, the fare is charged to the user's credit card on file.

The taxi industry has geared up to fight the spread of Uber, which continues to expand into cities around the world. Though it has no physical assets, the company was recently valued at $18 billion.

Bionic pancreas

While the smartphone's disruptive effects have caused their share of economic pain, the device has also been at the center of purely positive developments. A medical engineer in Boston, whose teen-aged son has type 1 diabetes has developed a “bionic pancreas.”

At the heart of the device, which monitors blood sugar levels and delivers insulin as needed, is an iPhone app. The developers hope to win FDA approval and begin making the device available next year.

The growth of smartphones in the U.S. has been explosive. According to an October 2013 study smartphone penetration had reached 74% of mobile phone users. It was a rise from 58% from a year earlier.

But perhaps more impressive that the growth of smartphones in such a short period of time is the radical change these devices have produced.

Let's go back in time, to a more primitive time, when life was simpler. Like 2007.In 2007 you could still buy a house for no money down. The economy was ...

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Anti-theft "kill" switches coming to Google and MIcrosoft devices

Good news for Android and Nokia phone users (at least, those intending the buy the next upgrade): Google and Microsoft, which make the phones' operating systems, plan to put kill switch options on all upcoming releases.

San Francisco District Attorney George Gascón and New York Attorney General Eric Schneiderman announced the policy changes in a  June 19 press release.

The announcement was concurrent with the release of a study showing the unsurprising conclusion that kill switches do indeed deter thieves. Apple started introducing kill switches on its products last autumn, and results have been extremely encouraging:

In New York City, theft of iPhones fell significantly after the release of Apple’s Activation Lock on September 18, 2013 …. In the first five months of 2014, robberies and grand larcenies involving Apple products dropped 19% and 29%, respectively, compared to the same time period from 2013. The decrease in Apple thefts far surpassed the citywide decrease in all robberies (-10%) and all grand larcenies (-18%). Perhaps most tellingly, robberies and grand larcenies from a person involving a Samsung smartphone, which did not have a kill switch during much of this time, increased by over 40%. (Encouragingly, Samsung introduced a kill switch solution in April of 2014 on their Verizon Wireless devices, the impact of which will likely be seen in future statistics.)

Statistics from San Francisco and London show similar outcomes ….

Last February, a proposed “Smartphone Theft Prevention Act” requiring kill switches went before Congress. The bill was introduced on Valentine's Day, although as of June 20, govtrack.us gave it a “1% chance of being enacted” prognosis.

Such a bill may not be necessary anyway, if more companies offer kill switches in response to consumer demand.

As the name suggests, a kill switch is an option that lets you remotely disable, or “kill,” your phone should a thief steal it. (Sometimes, it's referred to as “bricking” —i.e., transforming your phone from a communications device into nothing more than a high-tech brick.

However, if you do get a smartphone (from any carrier) with a kill switch option, remember that it'll do nothing to help you unless you actually activate it first. It's like any other security measure; after all, even the best and strongest lock in the world won't keep thieves out if you forget to close your door.

Good news for Android and Nokia phone users (at least, those intending the buy the next UPGRADE): Google and Microsoft, which make the phones' respective o...

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Chinese firm faces $35 million fine for selling signal-jammers

A Chinese firm that sells signal-jamming devices in the United States faces fines and penalties of nearly $35 million, the Federal Communications Commission said. The fine will be the largest in the FCC's history.

The FCC said in a statement it will fine C.T.S. Technology Co. for each of the 285 models of signal jamming devices it has been selling in the United States for more than 2 years, Courthouse News Service reported. 

The illegal jammers have become popular in churches, theaters, schools and other venues where cell phones frequently interrupt the proceedings.

"Signal jammers present a direct danger to public safety, potentially blocking the communications of first responders," FCC acting chief of enforcement Travis LeBlanc said in the statement. "Operating a jammer is also illegal, and consumers who do so face significant civil and criminal penalties."

The company's site -- aiswa.com -- promotes the inexpensive jammers for us in "jails, churches, meeting rooms and cars." 

One model, which sells for $70, has three 2-watt transmitters covering a wide range of cell phone frequencies and is said to be capable of jamming all types of transmissions, including GSM, CDMA and DCS.

"C.T.S. operates a website that markets consumer electronics to individuals in the United States, where it allegedly misled U.S. consumers by falsely claiming that certain signal jammers were approved by the FCC. In fact, the use of such devices by U.S. consumers is illegal under any circumstance," the FTC said in a prepared statement.

It alleged that C.T.S. also sold 10 high-powered signal jammers to undercover FCC personnel.

FCC rules prohibit purposely interfering with licensed radio communications and also prohibit operating unlicensed transmitting devices. 

A Chinese firm that sells signal-jamming devices in the United States faces fines and penalties of nearly $35 million, the Federal Trade Commission said. T...

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T-Mobile offers free "test drive," launches free music streaming service

One of the most annoying consumer experiences is switching to a new cell phone network, only to find that it has poor to non-existent coverage in your neighborhood or workplace.

T-Mobile has figured out how to turn that into a marketing advantage, by offering a free 7-day "test drive" of its network on iPhone 5s. The program, in partnership with Apple, kicks off on June 23.

T-Mobile cites research showing that nearly half (46%) of wireless customers say they’ve signed up with a carrier and then wanted to leave, and 1 in 10 have actually left within the first 30 days of making a switch.

“The way this industry forces Americans to buy wireless is completely, utterly broken.  I’m here to tell you there’s a better way,” declared John Legere, T-Mobile CEO and President. “While the carriers ask you to buy blind, the Un-carrier gives you transparency.  Our network kicks ass, and now people can experience for themselves what a data-strong network can do with T-Mobile Test Drive.”

After the 7-day test, T-Mobile says you can drop the iPhone off at a T-Mobile store and owe nothing. Starting Monday, June 23, consumers can sign up at www.t-mobile.com/testdrive

After the seven days, you’ll need to drop off the phone at a T-Mobile store, but you won’t have to put any money down for the test.

Rhapsody unRadio 

T-Mobile is also putting its own stamp on the streaming music market, with "unRadio," a new service produced with Rhapsody

UnRadio supplies streaming music from a catalog of more than 20 million songs, ad-free and, T-Mobile says, free of data plan charges to Simple Choice customers on its 4G LTE network.

In addition, unRadio will be available at a discounted price of $4 per month for other T-Mobile customers. 

“This new music streaming service is so unlike traditional Internet radio, there was only one possible name for it – unRadio,” said Mike Sievert, Chief Marketing Officer for T-Mobile. “We wanted to do something over the top for our customers, so we teamed up with our friends across town at Rhapsody to do what the Un-carrier does so well – turning convention on its head to benefit our customers.”

Rhapsody unRadio will be available initially for iOS and Android and on the Web.  

Photo source: T-MobileOne of the most annoying consumer experiences is switching to a new cell phone network, only to find that it has poor to non-exis...

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Starbucks offers wireless charging for smartphones

People stop in at Starbucks to recharge. That's getting a bit easier with the addition of wireless smartphone recharging areas, rolling out currently in the San Francisco area and expanding to major national markets in 2015. 

Rollouts to smaller cities are "planned over time," the company said. 

The charging areas will be powered by Duracell Powermat, which recharges compatible smartphones and other small electornics devices wirelessly.

How many smartphones are compatible? Good question.

Exact figures aren't available but Bloomberg News says "very few" phones have cordless charging technology built in. Apple sells cases that will make an iPhone Powermat-compatible. AT&T, Sprint and Verizon all sell phones that are compatible with different types of wireless charging.

Nice idea

Starbucks, of course, wants customers to show up more often and linger longer, which is why it's always tinkering with its menu, redecorating stores and, in perhaps its most influential innovation, adding free wi-fi years ago.

Starbucks will be the biggest rollout of Powermat, so that may in itself be enough to incentivize phone manufacturers to start building the technology into their devices. 

“Rather than hunting around for an available power outlet, [customers] can seamlessly charge their device while enjoying their favorite food or beverage offering right in our stores,” said Adam Brotman, chief digital officer at Starbucks. “We were pleased with the customer response to the pilot tests, and we’re now expanding this offering nationally to provide our customers a quality and reliable experience as they use our stores as their respite, their office away from home or as a gathering place with their friends and family.”

Stores will be equipped with "Powermat Spots" -- designated areas on tables and counters where customers can place their compatible device and charge wirelessly. Select Starbucks stores in Boston and San Jose offer Powermat today and the broader rollout can be tracked at www.powermat.com/locations.

“Powermat Spots in Starbucks are the result of almost a decade of scientific research spanning material sciences, magnetic induction and mesh networking,” said Ran Poliakine, CEO of Powermat Technologies. “The two-pronged power-plug dates back to the era of the horse drawn carriage, so that today’s announcement marks the first meaningful upgrade to the way we access power in well over a century.”

Photo source: StarbucksPeople stop in at Starbucks to recharge. That's getting a bit easier with the addition of wireless smartphone recharging areas, ...

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iPhone and iPad users: beware the latest iPhishing scam

Since this is a consumer website rather than an etiquette-advice column, we frequently remind everyone that when dealing with businesses in the modern interconnected era, you must always take the otherwise-rude attitude “Don't call me; I'll call you.”

For example: if you have, or think you might have, a problem with [pick one or more]: your bank, Netflix, Microsoft, Amazon, eBay, PayPal, electric company or any other account, you should definitely contact your bank or whoever, to see about fixing that problem.

But if everything seems fine and then suddenly, out of the blue, you get a text, phone call, email or any other message saying “Hi, this is your bank or Netflix or whoever, telling you there's a huge problem with your account so you need to give us some verification information right away” — don't believe it. Chances are that unsolicited message is actually from a scam artist posing as a legitimate business entity in hope of tricking you into handing over confidential information.

That said: if you're the worrywart type who simply can't ignore such a message, just in case there really is a problem, feel free to contact the company in question; just don't use the contact information you received in that unsolicited message. Go online (or even look in an old-fashioned phone book, if you want to contact the local electric company) and seek out the contact information yourself.

Worse than usual

All such scams are awful, especially from the victims' perspective, but the most recent one is even worse than usual: not just a phishing scam, but one targeting those already victimized by a previous scam! So far it's mainly been affecting people in Australia and New Zealand – but it has recently made it to America, and it's spreading.

The initial scam involves iPhone or iPad users being “locked out” of their devices after a scammer figured out how to hack the otherwise-useful “Find My iPhone” feature: try using your device and you are only able to access your email, where you find a note ordering you to put $100 into the scammer's PayPal account if you want the device unlocked.

That particular ransom email is “legitimate” – so much as any criminal ransom note can be “legitimate” – in that it actually is from the hacker himself.

A mere two days later, on May 29, security bloggers at Symantec warned of scammy phishing emails, allegedly from Apple, purporting to protect iFolks from being ransomed out of their iStuff.

The emails claim that the victims' iCloud infrastructure had been breached, so you have to change your password right now.

Of course, if you are foolish enough to fall for it, what actually happens is that you give your password to a scammer, who can then use it to break into your iThing and then do pretty much whatever he wants—anything from lock you out of it, to stealing or corrupting any files within.

Some of the subject headings in those sleazy emails included:

Please update your Apple account now

Apple – Your Account Is Not Confirmed

Please Verify Account Information For Your Apple ID

please verify the email address associated with your Apple ID

Incidentally, such language is hardly unique to this Apple-flavored phishing attempt; phishers pretending to be from Netflix, your bank or any other company often use the same phrasing. The whole idea, from the scammers' perspective, is to sound scary and ominous enough to override your usual sense of anti-scam skepticism.

If you're an iPhone or iPad user worried about your devices, feel free to contact Apple if you think it necessary. But if messages allegedly from Apple start cluttering your inbox, remember: “Don't call me; I'll call you.”

Since this is a consumer website rather than an etiquette-advice column, we frequently remind everyone, that when dealing with businesses in the modern int...

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Samsung's forthcoming smartwatch may not need to sync to a smartphone

There are all kinds of smartwatches already on the market. Some are fairly crude, some are pretty sophisticated but nearly all of them rely on a smartphone for at least some of their functions.

This may be about to change, however. Samsung is reported to be about to release a smartwatch that can send texts and make calls without having to sync with a smartphone.

There's no official word from the company but published reports say the watch, which is so far unnamed, will be released within the next month or two.

Besides telling the time, the smartwatch will supposedly be able to take photos, use GPS tracking, measure the wearer's heart rate and send emails.

Apple and Google are also working on new smartwatches as major manufacturers rush to get in on what's expected to be a land-office business. The market research firm IDC is predicting that sales of wearables will triple over the next year to more than 19 million units -- more than 10 times the predicted sales of smartphones.

Samsung's Galaxy Gear smartwatchThere are all kinds of smartwatches already on the market. Some are fairly crude, some are pretty sophisticated but nea...

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New calling app Ringo challenges Skype

For awhile there, making phone calls via the Internet was the unquestioned way to avoid expensive international and roaming rates. There were plenty of ways for the tech-at-heart to do it but then Skype came along at just the right time and made it quick and easy, not to mention cheap.

But every dog has its day and now there's a new calling app called Ringo that is claiming to offer lower rates, better quality and greater ease of use. How does it do it?

Well, quite honestly, we're not quite sure. The easy answer is that it assigns a local number to all of your international contacts. So if you live in Paris, Texas and want to call your Aunt Marie in Paris, France you enter her in your contacts list, Ringo assigns a local Texas number for Marie and routes the call to her via France. The recipient does not need to have the Ringo app.

Ringo says the call zings its way to (and from) Paris via undersea cable, with none of the drop-outs and weird sound effects that plague Internet calls and without asking you to turn on roaming.

Ringo claims its rates are about 25% cheaper than Skype. Ringo is available for iOS, Android and Windows Phone in 16 countries including Australia, UK, the U.S and Canada. The video below is Ringo's explanation for how it all hangs together.

Story continues below video

Really?

Whether Ringo is successful, of course, remains to be seen. The company isn't saying much about its finances or, more particularly, about the hoops it has jumped through to get space on undersea cables and to arrange the local switching arrangement that makes it all possible.

Technically, the set-up appears fairly straightforward but whether embedded carriers will sit still for it is another question. It would be reasonable to expect legal challenges if Ringo becomes enough of a factor to be noticed by the large telecom companies. 

For awhile there, making phone calls via the Internet was the unquestioned way to avoid expensive international and roaming rates. There were plenty of way...

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How the 'selfie' is boosting mobile security

Everyone, it seems – from President Obama on down – is posing for 'selfies,” those self-portrait photographs taken by extending a smartphone as far as an arm can reach and snapping a picture.

While it might seem like an exercise in narcissism, Toby Rush, CEO of EyeVerify, sees it as a tool to vastly expand his firm's biometric security product.

EyeVerify, a Kansas City start-up, has developed an application that takes an “eyeprint” of your eye, to work in the place of a password. A great idea, perhaps, but somewhat cumbersome to implement.

But then the “selfie” trend came along, prompting device manufacturers to respond in a way that benefits EyeVerify, and Rush contends, also benefits mobile security.

“This year you're seeing a significant upgrade in front-facing camera capabilities,” Rush told ConsumerAffairs. “As manufacturers upgrade those cameras we are able to use them to image and pattern match the blood vessels of your eye.”

Front camera usually an after-thought

When you look at marketing material for smartphones you often find a short list of specs. They include processor speed, graphics capability, screen resolution and the resolution of the rear-facing camera.

Little mention has been made of the front-facing camera, since it was rarely used and, when it was, mostly for video chats.

“Now we're seeing enough use-demand for the selfie camera that manufacturers are beginning to upgrade it,” Rush said. “We've seen in the last few weeks, and we have information about phones that are coming, where the front-facing camera is now making it on the short list of specs.”

Big upgrade

In the last week Chinese manufacturer Huawei has launched a new smartphone featuring an 8 MP front camera, an obvious bow to consumers who now select a device, in part, for its ability to snap a “selfie.”

By comparison, the new Samsung Galaxy S5 has a 2 MP front-facing camera, more than ample optics capability to work with EyeVerify's eyeprint system, according to Rush.

Optics are only part of the equation. A smartphone needs the processor speed to handle the complex software required to process the EyeVerify system.

“We have been able to enhance our algorithms and leverage these newer cameras to do that with a common smartphone,” Rush said. “What we're doing is leveraging existing hardware on smartphones and tablets that are already widely deployed and will continue to be widely deployed.”

Mobile banking security

The eyeprint system's principal application at present is for mobile financial services, though Rush says future uses will quickly emerge. Currently the mobile banking app NetTeller uses it, primarily in Australia.

“When they want to log you into the banking app you hold the phone up 8 to 12 inches away from your face where it would capture the image of your eye,” Rush said. “We capture that, process it in under a second and log you in with the equivalent of a 50-character complex password.”

It's not just secure, Rush points out, it's also convenient for the consumer.

“We're giving you very high security with something you never have to remember, type in or change,” he said.

Everyone, it seems – from President Obama on down – is posing for 'selfies,” those self-portrait photographs taken by extending a smartph...

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FTC: Snapchat deceived consumers, hid security breach that exposed users' information

Snapchat had a great thing going. Or at least it seemed to. The mobile messaging app promised consumers that they could say anything without worrying about it coming back to haunt them and promised that all communications were secure.

But the Federal Trade Commission says it wasn't so, and charged that Snapchat deceived consumers with promises about the disappearing nature of messages sent through the service.

The FTC case also alleged that Snapchat deceived consumers about the amount of personal data it collected and the security measures taken to protect that data. In fact, the case alleges, Snapchat’s failure to secure its Find Friends feature resulted in a security breach that enabled attackers to compile a database of 4.6 million Snapchat usernames and phone numbers.

“If a company markets privacy and security as key selling points in pitching its service to consumers, it is critical that it keep those promises,” said FTC Chairwoman Edith Ramirez. “Any company that makes misrepresentations to consumers about its privacy and security practices risks FTC action.”

Snaps don't always disappear

Touting the “ephemeral” nature of “snaps,” the term used to describe photo and video messages sent via the app, Snapchat marketed the app’s central feature as the user’s ability to send snaps that would “disappear forever" after the sender-designated time period expired. Despite Snapchat’s claims, the complaint describes several simple ways that recipients could save snaps indefinitely.

Consumers can, for example, use third-party apps to log into the Snapchat service, according to the complaint. Because the service’s deletion feature only functions in the official Snapchat app, recipients can use these widely available third-party apps to view and save snaps indefinitely. Indeed, such third-party apps have been downloaded millions of times.

Despite a security researcher warning the company about this possibility, the complaint alleges, Snapchat continued to misrepresent that the sender controls how long a recipient can view a snap.

In addition, the complaint alleges:

  • That Snapchat stored video snaps unencrypted on the recipient’s device in a location outside the app’s “sandbox,” meaning that the videos remained accessible to recipients who simply connected their device to a computer and accessed the video messages through the device’s file directory.
  • That Snapchat deceptively told its users that the sender would be notified if a recipient took a screenshot of a snap. In fact, any recipient with an Apple device that has an operating system pre-dating iOS 7 can use a simple method to evade the app’s screenshot detection, and the app will not notify the sender.
  • That the company misrepresented its data collection practices. Snapchat transmitted geolocation information from users of its Android app, despite saying in its privacy policy that it did not track or access such information.

Collected contact info

The complaint also alleges that Snapchat collected iOS users’ contacts information from their address books without notice or consent. During registration, the app prompted users to, “Enter your mobile number to find your friends on Snapchat!” Snapchat’s privacy policy claimed that the app only collected the user’s email, phone number, and Facebook ID for the purpose of finding friends.

Despite these representations, when iOS users entered their phone number to find friends, Snapchat also collected the names and phone numbers of all the contacts in their mobile device address books. Snapchat continued to collect this information without notifying or obtaining users’ consent until Apple modified its operating system to provide such notice with the introduction of iOS 6.

Finally, the FTC alleges that despite the company’s claims about taking reasonable security steps, Snapchat failed to secure its “Find Friends” feature.

For example, the complaint alleges that numerous consumers complained that they had sent snaps to someone under the false impression that they were communicating with a friend. In fact, because Snapchat failed to verify users’ phone numbers during registration, these consumers were actually sending their personal snaps to complete strangers who had registered with phone numbers that did not belong to them.

The complaint also alleges that Snapchat’s failure to secure its Find Friends feature resulted in a security breach permitting attackers to compile a database of 4.6 million Snapchat usernames and phone numbers. According to the FTC, the exposure of this information could lead to costly spam, phishing, and other unsolicited communications.

Under the terms of its settlement with the FTC, Snapchat will be prohibited from misrepresenting the extent to which it maintains the privacy, security, or confidentiality of users’ information.

In addition, the company will be required to implement a comprehensive privacy program that will be monitored by an independent privacy professional for the next 20 years.

Snapchat had a great thing going. Or at least it seemed to. The mobile messaging app promised consumers that they could say anything without worrying about...

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T-Mobile's consumer-friendly strategy ignites sales

Many Verizon Wireless subscribers recently received some unexpected but pleasant news. The company announced it would lower their bill by $10 for each upgrade-eligible device on the plan.

Why would Verizon Wireless cut your rate without your even asking? Simple, for the first time there is a lot of price competition in the mobile phone industry and much of it is coming from T-Mobile.

The No. 4 carrier is shaking things up. In reporting first quarter earnings last week T-Mobile said it was not only profitable, but managed to sign up 1.3 million new post-paid customers, more than AT&T, Verizon and Sprint combined.

Fastest-growing wireless company

Consumers rate T-Mobile - Network Problems
That made T-Mobile America's fastest-growing wireless company. How is it doing it? With aggressive pricing and a rebellious attitude toward its competitors.

"A year ago I promised that we would bring change to what I called this arrogant U.S. wireless industry. We are delivering on that promise and our results reflect the growing customer revolution that we've ignited," said John Legere, President and CEO of T-Mobile.

Now with close to 50 million customers, T-Mobile just posted its fourth straight quarter of rising service revenue. Its 1.3 new post-paid subscribers translates into an astounding 136% year-over-year growth in a industry that is approaching full maturity. The growth, quite simply, is coming at the expense of its larger competitors.

Siding with consumers

For years consumers have been asking why they have to sign a two-year agreement just to be able to be able to have a cell phone. Since Legere took the T-Mobile helm a year ago, he's asking that too.

As a result, T-Mobile no longer requires customers to sign service contracts. On March 26, 2013, it announced a simplified unlimited "Simple Choice" service plan with no annual service contract.

Meanwhile, device financing with the Equipment Installment Plan (EIP) allows qualifying customers to obtain new phones with little out-of-pocket costs.

But the company didn't stop there. It has offered free wireless plans if you have a tablet in addition to a smartphone. It allows you to upgrade your smartphone every few months instead of every two years.

Then it made a move that has perhaps caused the most disruption in the mobile phone space. T-Mobile will pay your early termination fee when you drop your current provider, trade in your device and sign-up with T-Mobile.

While many industry analysts say such a policy is not sustainable over the long haul, it has obviously produced results in the short term.

No more roaming charges

For international travelers, using a cell phone overseas often results in shockingly-high roaming charges – sometimes thousands of dollars. But T-Mobile's new international plan gives its Simple Choice customers unlimited data and texting worldwide in more than 100 countries.

At the same time, T-Mobile continues to build out its U.S. network. It says it now has 4G LTE service in 233 metro areas covering a population of 220 million.

It's little wonder the rest of the industry is in reaction mode. For example, AT&T recently launched a plan with four phones sharing 10 GB of data a month for $160.

Almost didn't happen

Consumers rate AT&T Wireless
The trend set off by T-Mobile is unquestionably good for consumers. But it is worth remembering that it almost didn't happen.

In 2011 AT&T announced plans to acquire and merge with T-Mobile, which would have reduced the Big 4 carriers to the Big 3. But then the U.S. government stepped in.

The Justice Department sued to block the merger. The Federal Communications Commission (FCC) ruled the merger would be anti-competitive.

"It is yet another example of a government agency acting to prevent billions in new investment and the creation of many thousands of new jobs at a time when the US economy desperately needs both," AT&T spokesman Larry Solomon said at the time.

But without that action, it is all but certain that using a cell phone today would be significantly more expensive and confining than it is.

Many Verizon Wireless subscribers recently received some unexpected, but pleasant news. The company announced it would lower the customer's bill by $10 for...

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AT&T eyes DirecTV acquisition

Hoping to stake out the pole position in the Convergence Derby, AT&T has reportedly approached DirecTV to talk about an acquisition. Earlier this week, the telecom and cable giant announced it was butting into the airborne broadband business.

If AT&T manages to acquire DirecTV, it will be roughly the same size as Comcast will be if it completes its merger with Time Warner Cable.

The rumored deal comes as cable, telecom and satellite companies face several grim realities: the satellite TV market is beginning to shrink; the cable TV market has just about maxed out its growth; and, most significantly, new players like Netflix and Amazon are becoming major content providers and are using streaming video to get around the cable-satellite stranglehold.

What all this urge to merge means for the consumer is always open to question. The stock answer is that having fewer, bigger companies leads to less competition and higher prices.

But an opinion piece in today's Bloomberg News takes the opposite tack.

"What a customer can ultimately get out of these mergers is seamless connectivity. With a single contract and a single set of credentials entered into a device such as a laptop, smartphone or tablet, you will eventually stop paying attention to how you are connected and what you're connected to," Bloomberg contributor Leonid Bershidsky writes.

Could be. It's a bit early in the game to worry excessively, since any deal is likely at least a year away from consummation and would no doubt face energetic regulatory scrutiny and organized opposition from consumer groups.

Hoping to stake out the pole position in the Convergence Derby, AT&T has reportedly approached DirecTV to talk about an acquisition. Earlier this week,...

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Farmstand -- new app helps you find farmer's markets

Farmer's markets can be a lot of fun but they can also be hard to find, so a new app aims to help.

It's called -- what else? -- Farmstand --  and it will show you the hours and locations of farmer's markets wherever you happen to be, at least whenever other users have supplied the information.

The iOS app relies on user-generated content so the accuracy and quantity of the information will depend on how many users are signed up in the area where you're looking.

Check it out and let us know what you think of it.

Farmer's markets can be a lot of fun but they can also be hard to find, so a new app aims to help.It's called -- what else? -- Farmstand -- &...

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Bill would require "kill switch" apps on all US smartphones

Last year, Samsung developed a “kill switch” app that smartphone owners could use to remotely “brick” their phones (i.e., “Make them stop working, so the phone becomes little more than a fancy-looking brick”). The idea was that if enough stolen smartphones were transformed into bricks, thieves would stop stealing them.

And yet, last December we reported that “Verizon, AT&T, T-Mobile, United States Cellular Corporation, and Sprint have prohibited Samsung from pre-loading the app, and New York Attorney General Eric T. Schneiderman wants to know why.”

The phone companies' motivations might remain forever a mystery, but for whatever reason, on April 4, Schneiderman and San Francisco District Attorney George Gascón issued a joint statement announcing that Verizon and US Cellular (no mention of the other companies) had decided to allow the apps, which smartphone owners can activate for free.

Congressional action

As of now, no company is legally required to offer free kill switches, as Verizon and US Cellular intend to do. However, ever since February there's been a bill before Congress, HR 4065, which if passed into law would make kill switches mandatory on all phones sold in the US.

The full text of the bill is on the Congressional website here, and the official summary of the bill is here.

Though the summary is, of course, much shorter than the full bill, it's still written in fairly dense legalese. Here's the summary plus translations into standard everyday English.

Smartphone Theft Prevention Act - Amends the Communications Act of 1934 to require commercial mobile service providers to make available on mobile devices a function that an account holder may use remotely to: (1) delete or render inaccessible all information relating to the account holder that has been placed on the device; (2) render the device inoperable on the global networks of such service providers, even if the device is turned off or has the data storage medium removed; (3) prevent the device from being reactivated or reprogrammed without a passcode or similar authorization after the device has been rendered inoperable or has been subject to an unauthorized factory reset; and (4) reverse any such actions if the device is recovered by the account holder.

Translation: phones need to have kill switches which can render them completely useless to thieves, even if the stolen phone is stripped clean of all data.

Prohibits a mobile device from being manufactured in the United States or imported into the United States for sale or resale to the public, unless the device is configured in such a manner that a service provider may make such remote deletion and inoperability functions available on the device.

Translation: Any phones made or sold in the US will have to have a kill switch.

Allows the Federal Communications Commission (FCC) to waive such requirements with respect to any low-cost mobile device that: (1) is intended primarily for voice-only mobile service, and (2) may have limited data consumption functions focused on text messaging or short message service.

Translation: the kill-switch mandate would apply only to smartphones, not to old-fashioned cell phones which can only be used to make phone calls and send text messages. [Presumably, that's because thieves don't bother stealing “dumb phones” anyway; they have little to no resale value on the black market.]

Prohibits service providers from charging a fee for making such remote deletion and inoperability functions available.

Translation: the kill switch must be free to end users.

Last week, AG Schneiderman's office put out another press release announcing that Schneiderman joined Congressman Dan Maffei (D-New York) in co-sponsoring the bill.

Last year, Samsung developed a “kill switch” app smartphone owners could use to remotely “brick” their phones (i.e., “Make th...

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Kill switch option coming for some smartphone users

Last year, Samsung developed a “kill switch” app that would allow smartphone owners whose phones had been stolen to remotely “brick” their phones, rendering them useless to the thief.

And yet, as we reported last December, “Verizon, AT&T, T-Mobile, United States Cellular Corporation, and Sprint have prohibited Samsung from pre-loading the app, and New York Attorney General Eric T. Schneiderman wants to know why.”

A cynic might speculate: “It's because the phone companies all figure 'Hey, if you can't get your stolen phone back you'll have to buy a new one, which means more money for us. Whoopee!'” Or perhaps there's a useful valid consumer-protection rationale behind it, only the phone companies forgot to issue the press release with the explanation.

Whatever the reasoning, on April 4, Schneiderman and San Francisco District Attorney George Gascón issued a joint statement announcing that Verizon and US Cellular (no mention of the other companies) had decided to allow the apps, which smartphone owners can activate for free.

So, whatever consumer-protection benefits smartphone owners previously enjoyed via not having the kill switch option on their phones, well, those benefits are gone now, and Verizon and US Cellular users who choose to activate the app will just have to live with the knowledge “Gee, if a thief steals my smartphone now, there is something I can do about it.”

Last year, Samsung developed a “kill switch” app that would allow smartphone owners whose phones had been stolen to remotely “brick” their phones...

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Hacker drones put your smartphone and tablet data at risk

Free wi-fi has become almost a standard feature in coffee shops, fast-food outlets and similar businesses, because a hangout whose customers can't use their smartphones or tablets is a hangout likely to lose customers after awhile.

Of course hackers have figured out ways to use this to their advantage. The latest, which CNN Money reported this week, involves using drones capable of stealing everything on your smartphone — passwords, photographs and more.

More specifically, the technology to strip the data from your smartphone already existed, just not in super-mobile hard-to-avoid drone form.

Fortunately, the hackers who created the drone (named “Snoopy”) are actually security researchers with Senseport Research Labs who intend to present Snoopy to a cybersecurity conference next month. As CNN Money explained:

Snoopy takes advantage of a feature built into all smartphones and tablets: When mobile devices try to connect to the Internet, they look for networks they've accessed in the past.

"Their phone will very noisily be shouting out the name of every network its ever connected to," Sensepost security researcher Glenn Wilkinson said. "They'll be shouting out, 'Starbucks, are you there?...McDonald's Free Wi-Fi, are you there?"

So Snoopy basically poses as Starbucks or McDonald's wifi and shouts back “Here I am,” your phone or tablet makes the connection, and Snoopy (and the hackers controlling him) can read everything you do. CNN opened new accounts with Amazon, PayPal and Yahoo, specifically to see if Snoopy could steal the usernames and passwords; yes, easily.

Fortunately, protecting yourself is almost as easy: shut off the wi-fi connections on your mobile devices when you're not using them, and set it so that it must ask before joining a mobile network

Free wifi has become almost a standard feature in coffee shops, fast-food outlets and similar businesses, because a hangout whose customers can't use their...

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Flappy Bird followup: Trojan apps, eBay cancellations and more

Sequels are almost always worse than the originals, so maybe it's not surprising that so far, the various followups to the Flappy Bird story have proven vastly less inspiring than the first tale.

The capsule summary of the original story is this: the immensely popular game app Flappy Bird disappeared from app stores last weekend. Game developer Dong Nguyen said he pulled the plug on it because the game proved too addictive. So he chose to walk away from up to $50,000 per day in ad revenue rather than keep his addictive app out there.

However, Flappy Bird addicts desperate for a fix could still get one via various Flappy knockoffs, including Flappy Whale, Flappy Plane, Flappy Angry Birds, and others.

Not so nice

That was a nice story. Here are the less-nice followups: first, the TrendLabs security blog discovered that the void left by the real Flappy Bird takedown is being filled by malicious Flappy Bird clones that are “Premium Service Abusers” — programs that send automatic messages to “premium” numbers, resulting in unwanted charges on your phone bill. (And, as always, many of these programs also steal whatever personal information is in your phone, too.)

Second, claims that Dong Nguyen has given up $50K in daily ad revenue aren't quite accurate, either — though Flappy Bird is no longer available for new players to download, the 50 million or so people who've downloaded it already are still playing and still generating ad revenue. (In fairness to Nguyen, though, he is not the one who claimed to be giving up $50K per day in ad revenue; that number was an estimate produced by outside observers.)

Smartphone owners with the legitimate Flappy Bird app on their phones tried cashing in by selling their phones on eBay, and received bids as high as $99,000 — until eBay pulled the plug on all such auctions, claiming that smartphones may not be sold on eBay unless they're restored to their original factory settings.

Sequels are almost never as good as the originals. This story is no exception...

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The One-Ring Phone Scam -- don't return that unfamiliar call!

When you check your cell phone and see a missed call from an unfamiliar phone number, it's tempting to call it back in case you missed something important. But this attitude (which could perhaps be described as a combination of curiosity and politeness) is being exploited by a particular subset of cell phone scammers known as “crammers,” who trick unsuspecting people into calling numbers that have extremely high fees attached.

Crammers often rely on what's called the “One-Ring Phone Scam,” and it's become common enough that the Better Business Bureau released an official warning about it on Jan. 31.

Perpetrators of this scam program their computers to blast out thousands of calls to random cell phone numbers, ring once, and then disconnect.

This scam relies on consumers calling back missed calls, which then connect them to a paid international adult entertainment service, 'chat' line, or other premium service located outside the country.

Victims who return the call are billed a $19.95 international call fee, along with per minute charges for the unwanted "premium service," which can be $9 per minute or more. In some cases, the scammers may only put through a small charge of several dollars, so it won't arouse suspicion. 

That technique of billing only small dollar amounts to avoid suspicion is also being adopted by more and more scammers these days. Jason Willms, the prolific online scammer who's been dubbed the “Dark Lord of the Internet,” allegedly made over $400 million through various subscription and billing scams — and one reason he got away with it as long as he did was his technique of billing credit cards for small random-sounding amounts – $7.22, $2.37, etc. – which looked like legitimate charges (especially for people who use their credit cards so frequently, they can't remember every specific charge they made).

Check your bill

That's why you need to scrupulously check your credit card billing statement every month – and give the same scrutiny to your cell phone bills, too. The best way to avoid falling prey to the one-ring phone scam is to never call unfamiliar out-of-state numbers that hang up without leaving a message.

However, if you are tricked into making such a call, hang up immediately and then contact your cell phone provider; the sooner you report the fraudulent call, the better your chances of having the charge taken off your bill.

You should also report the call to the Federal Trade Commission and Federal Communications Commission.

When you check your cell phone and see a missed call from an unfamiliar phone number, it's tempting to call it back in case you missed something important....

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FCC considers taking first step towards scrapping old telephone lines

One way or another, the old copper-based telephone networks will be going away. Critics say it's already happening, as telephone carriers fail to maintain the networks and fail to adequately repair damage caused by storms and accidents.

Consumers have made it pretty clear they're ready to switch to digital networks, both Internet-based services like Skype and Vonage and the wireless networks that power their smartphones.

Now the Federal Communications Commission is weighing in. It's expected to vote today to authorize trials around the country in which phone companies would switch customers to new Internet-based networks to gather data on what, if any, problems occur.

Rural concerns

Consumers rate Verizon Local Service

Rural areas and small businesses are the primary concerns at the moment. Rural areas tend to lack the higher-speed broadband services available in large metropolitan areas and many consumers have found that Skype and similar services just don't work very well for them.

Likewise, small businesses have a lot of equipment hooked up to the copper network -- things like credit card readers, burglar and fire alarms and automated phone trees. Many of these systems are made to work on analog systems and may have to be replaced or upgraded if the telephone network switches to a digital architecture.

Many consumers are already on digital systems without realizing. Most of the telephone services offered by cable systems are digital, as are FiOS and AT&T's Uverse. 

The plan being considered today would allow phone companies to convert the phones of volunteers in specified service areas to digital. New customers in the test areas would be required to go digital from the start.

Regulatory questions

The question here is not so much technical as regulatory. Everyone knows digital technology works; you're reading this, aren't you? But POTS -- the term old-line telephone types use to refer to Plain Old Telephone Service -- has for the better part of a century been heavily regulated to promote the basic concepts of:

  • universal service,
  • rate equity, and
  • service reliability.

Rand Paul and other Libertarians may not like this, but telephone and electricity service, along with natural gas in some areas, have long been considered "utilities." Companies were allowed to have a monopoly in a region in exchange for agreeing to provide service everyone in their region, to charge everyone the same amount for the same grade of service and to maintain a reasonable reliability standard.

The rapid growth of the Internet and wireless service has broken the regulated monopoly model but the FCC wants to be sure that a conversion to a digital network doesn't leave anyone behind.

This is not a theoretical argument if you are a rancher living 20 miles from your nearest neighbor. Currently, the phone company has to run a line to your house and provide you with service for the same price as someone who lives across the street from the telephone company office in the nearest town.

FCC officials quoted over the last few days have said that the commission will not be rushing into a mass conversion and insist the tests being contemplated today are just the beginning of the process.  

The Wichita lineman may still be on the line, but it might be time for him to have a backup plan.

One way or another, the old copper-based telephone networks will be going away. Critics say it's already happening, as telephone carriers fail to maintain ...

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Verizon's Edge upgrade lets you increase annual smartphone expenses up to six times

A couple weeks ago, we mentioned how smartphone industry analysts believe that industry is entering a far more competitive phase of its history, basically because smartphone technology has been around long enough to thoroughly saturate the market: with the exception of children whose parents deem them not yet old enough, pretty much everybody who wants a smartphone has one by now.

Therefore, smartphone companies seeking to expand their profit margins must either “poach” customers from competing businesses, or convince the customers they've already got to shell out additional money.

Which explains Verizon's “theoretically exciting, but actually quite snooze-worthy” announcement that it's made some changes -- "upgrades," it calls them -- to the “Edge” program it rolled out last July. Here's what Verizon's press release said about Edge Upgrade at the time:

“... the new Verizon Edge device payment plan offers an affordable way to upgrade to the newest device and satisfy your love of technology. Verizon Edge is a flexible equipment payment plan that spreads the retail price of a phone over 24 months. You can also upgrade to a new phone after six months if 50 percent of the retail cost has been paid.

“Here's how it works: Choose the phone you want and sign up for a month-to-month service plan, it's as easy as that. The full retail price of the phone will be divided over 24 months and you'll pay the first month at the time of purchase. If you want to upgrade after 6 months, just pay off 50% of the full retail price of the phone and you can choose a new phone and start all over again.”

Money to burn?

Side note: As consumer advocates, we're compelled to point out that paying for a brand-new latest-gen smartphone every six months (or even paying for half of a brand-new latest-gen smartphone every six months) has the same effect on your net worth as does keeping one smartphone and periodically setting fire to large piles of $20 bills (assuming you do so in a manner cognizant of local safety codes).

And unless you're in an extremely good financial position – say, well-paid, debt-free and a year's living expenses in the bank, at minimum – we'd strongly advise smartphone buyers to pick a phone they'll want to keep for a good long length of time, no matter how tempted they are by the latest smartphone upgrades announced each week.

However, if you choose to ignore this, Verizon's updated Edge Upgrade program now offers consumers the ability to give up paying for half of a new-gen smartphone every half-year, in lieu of paying for half of a new-gen smartphone every month. Yes! CNet broke the news on Jan. 19:

“In the latest tit-for-tat in the escalating jockeying between carriers, Verizon has modified its Edge payment and early upgrade plan. Until now, customers had to wait six months to upgrade. Now they can do it after 30 days. …. Verizon said that eligibility will require news customers to pass credit checks. What's more, it said that prepaid accounts are not eligible for Verizon Edge. A spokesman for Verizon said "this is currently a promotion but we have not set an end date.”

A thoroughly unimpressed tech blogger for Engadget noted that “the tweak was technically a promotion, but it's not actually much of a deal. Although the wait-time has been reduced by a factor of six, the amount due hasn't changed a penny.... While it's always good to have options, maybe it's a better idea to sort out your buyer's remorse during your carrier's return window.”

And if you're the type of person who's genuinely interested in the opportunity to switch smartphones every month, it's a good idea to sort out your finances: write down the numbers, see where your money's going every month and decide whether you can really afford to keep replacing high-end technology more frequently than most people replace their socks.

A couple weeks ago, we mentioned how smartphone industry analysts believe that industry is entering a far more competitive phase of its history, basically ...

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Smartphone companies scramble for each others' subscribers

Smartphones have now entered what you might call the “cannibalism” phase of market growth — which is considerably less disgusting than it sounds, and might even prove to have some advantages for consumers.

MediaPost's marketing blog noted that the “Next wave of [the] Telecom wars [is] to focus on switchers.” In other words: smartphones aren't exactly a “new” thing anymore; pretty much every adult who wants a smartphone has one already.

So if a wireless company wants to increase its subscriber base, there aren't many potential “new” customers out there (“new” meaning, someone who has never owned a smartphone before); instead, it has to convince “old” smartphone users to switch away from their current providers and go with someone else.

Which is not to say that the smartphone industry is on the verge of any huge changes, from consumers' perspective. Indeed, there's some inherent limits to how much competition can exist between various smartphone companies, anyway.

For example: AT&T and T-Mobile have both been targeting each others' subscribers — because the two companies use the same technology, so switching between the two is easy. But companies like Sprint and Verizon Wireless use different technology.

But regardless of what smartphone plan you have or which company you go with, it's always worth periodically comparing your subscription to other available offers. In many cases, merely letting your provider know you're switching to a cheaper service can inspire your current provider to make a better counteroffer.

Smartphones have now entered what you might call the “cannibalism” phase of market growth—which is considerably less disgusting than it s...

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Apple, Android still dominate the smartphone universe

If you were trying to decide what kind of smartphone to buy based on what other consumers are using, your choice would be a tough one. The race between the Apple and Android operating systems remains tight, according to the latest data from comScore, a market data firm.

Apple was still the number one smartphone manurfacturer in the November survey but Android remains the more popular operating system. The survey gave Apple's iPhone a 41.2% market share among individual devices. Google's Android system, however, continued its overall dominate with 51.9% of mobile devices in use employing its operating system.

Considering the fact that the smartphone explosion didn't really start until Apple introduce its first iPhone in mid 2007, the market penetration has been remarkable. By comScore's count, 152.5 million people in the U.S. owned smartphones during the three months ending in November, up three percent since August.

iPhone still #1

The iPhone is by far the most popular mobile device. Samsung's multitude of smartphone models cumulatively comprise just 26% of the market, coming in second to Apple's 41.2%. According to the comScore data, both Apple and Samsung improved their market share, to the detriment of their other competitors.

Motorola saw its share of the market dip from 6.9% to 6.7%. LG's market share fell from 6.7% to 6.5%. But HTC was the biggest loser, with its share of the smartphone market dropping from 7.4% to 6.4%.

If you are shopping for a new smartphone all of these companies have relatively recent products vying for your attention.

Latest phones

If you want an iPhone, the latest model available is the iPhone 5S, an upgrade of its iPhone 5. It debuted last September with some nice features, but CNET's review said it is not “a required upgrade,” meaning if you continue to use the older iPhone 5 you aren't missing a lot. It still features a four-inch screen with the tech website said “looks tiny next to its Android competitors.” 

Samsung is known for a more rapid product cycle and turns out models with different features and price points. While the flagship Galaxy S4 has a large screen, some users might find it a bit too large. In late 2013 Samsung introduced the Galaxy S4 Mini. It has most of the same features of its big brother but in a smaller package, with a 4.3 inch screen. However, not all reviewers were wowed. 

Motorola's flagship smartphone is the Moto X. The company is trying to find its niche among budget-conscious consumers who don't want to pay $600 for a phone that they'll probably replace in two years.

CES debut

LG is using this week's Consumer Electronics Show (CES) in Las Vegas to roll out its latest smartphone offering, the LG G Flex. One of the things setting this device apart is its curved design, which the company says will provide a better user experience.

This device has a six-inch HD, curved OLED display, along with a 13-megapixel rear-facing camera. It will run on Google's Android 4.2.2 mobile operating system. It will be available in the first quarter at AT&T, T-Mobile and Sprint.

HTC's flagship phone is the HTC One, introduced in the summer of 2013. While the phone has won positive reviews for its design, powerful processor and stunning 1080p screen, the company's smartphone sales have lagged competitors.

This week the Taiwan-based electronics firm delivered worse than expected earnings. Once dominant in the industry, HTC has lost nearly three-quarters of its market share in just the last two years.

If you were trying to decide what kind of smartphone to buy based on what other consumers are using, your choice would be a tough one. The race between the...

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AT&T tries to reinvent the 800 number with "Sponsored Data" plan

You have to hand it to AT&T -- it never stops trying to go back in time, back to the days when it was able to attach little dollar signs to just about everything anyone could think of doing with a telephone.

One of its cleverest inventions was the 800 number that enabled businesses to pick up the tab when customers (and anybody else, for that matter) called them. This was regarded as the latest and greatest thing in customer relations back in the day. Pretty soon, every business was shelling out big bucks and AT&T's cash register rang merrily all day long.

But then the nasty old Internet ended all that. Or did it? AT&T has never given up hoping that it will find a way to once again get its mitts into those deep corporate pockets.

Of course, we all pay for the Internet -- consumers, businesses, government, charities, scam artists. The original idea was that everyone would have access to everything without paying any kind of extra charge beyond a modest monthly access fee.

Well, we all know how that worked out. Now, consumers pay $60 or more for their Internet connection at home. Then they pay up to a few hundred more for broadband service on their smartphones, over and above the fee for plain old telephone and text calls. Quite a bit of this flows into AT&T's coffers, along with those of Verizon, Sprint and other titans of the Internet.

Just a few hundred million more

But it has always irked AT&T that it can't gouge businesses for a few hundred million more per year.

So, never one to retreat from a bad idea, AT&T today rolled out its latest version of its One Big Idea at the Consumer Electronics Show in Las Vegas, billing it as "a new way for eligible 4G customers to enjoy mobile content and apps over AT&T’s wireless network without impacting their monthly wireless data plan."

Not bashful about admitting its single-minded obsession, AT&T describes the scheme as "similar to 1-800 phone numbers or free shipping for internet commerce," and says its "Sponsored Data" service will be the greatest thing since, well, the 800 number.

"With the new Sponsored Data service, data charges resulting from eligible uses will be billed directly to the sponsoring company; the customer simply enjoys their content via AT&T’s wireless data network," AT&T burbled.

“Customers love mobile content. Whether it’s shopping, banking, entertainment or personal wellness, mobile content is increasingly available for customers almost anywhere and anytime," enthused Ralph de la Vega, president and CEO, AT&T Mobility, calling it "an exciting new opportunity for us and, most importantly, our customers.” 

Think anyone will be crazy enough to sign up? AT&T is betting that once a few players in each sector -- healthcare, entertainment, financial services -- take the plunge, their competitors will have to follow. And, even now that it has become a doddering shadow of its once munificent self, it's probably not wise to bet against AT&T. Its lobbying and marketing muscle can still bedazzle regulators, corporate bean-counters, consumers and everyone in between. 

And, after all, it would be a good thing, perhaps, for consumers, except that in the end the costs would just get marked up and put right back into the pricing for the goods and services sold by the corporate customers shaken down by AT&T.

You have to hand it to AT&T -- it never stops trying to go back in time, back to the days when it was able to attach little dollar signs to just about ...

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New site predicts how much bandwidth an app will use

You want to find the car that gives you the best mileage and the refrigerator that won't inflate your electricity bill to the size of the national debt, right?

So it stands to reason you'll want to know how much expensive bandwidth that new app you -- or you offspring -- are thinking of loading onto your smartphone. That's the thinking behind a new website put together by CTIA-The Wireless Association, the oddly-named trade association of the cell phone industry.

There are already tools that will tally up data usage after the fact but CTIA says KnowMyApp.org is the first one to give you a heads-up before you hit the download button.

Visitors to KnowMyApp.org may search by name, operating systems or categories. After locating and clicking the desired app, users will find the following information:

  • How the app was tested;
  • How much data is used when downloaded, at initialization (both first and subsequent start-ups to analyze caching), during active run time and during background time;
  • How the app impacts data plans (i.e., 300 MB, 1 GB, 2 GB and 4 GB); and
  • How users can conserve data usage.

Currently, KnowMyApp.org includes test results for the 50 top paid and free apps from Apple and Google stores with more being tested and added each month.

For example, here's what the site has to say about the Netflix app for Android:

To put it plainly, watch a few video shorts each day and watch your monthly bandwidth allotment disappear.

CTIA is also providing tips and best practices guides to app develpers to help them develop apps that don't consumer gigantic amounts of broadband.

You want to find the car that gives you the best mileage and the refrigerator that won't inflate your electricity bill to the size of the national debt, ri...

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Fighting back against cellphone theft

One of the fastest growing personal property crimes in the U.S. is cellphone and smartphone theft. It should come as no surprise. These devices can often cost more than a laptop computer if you pay the unsubsidized price. They can also contain valuable personal information.

That creates a sizable profit margin for crooks on the black market. And it seems to be an easy thing to steal.

“I was at the mall recently and I saw so many people walking around with iPhones sticking out of their back pocket,” said Shane Lyberger, founder of MyStolenPhone.com, an online database where consumers can report stolen devices. “You know how easy it would be for a thief to pull that phone and run? No one seems to have a sense of security about their cellphones anymore.”

Swiped in mid conversation

Even people who think they are being careful with their phones can fall victim. There have been reports of people having their phones snatched in mid conversation, as they were holding the device to their ear.

There are a number of different databases, operated by law enforcement and the wireless carriers, that contain information about stolen devices. Lyberger says his is the largest public database of stolen phones.

Individuals manually submit ESN, MEID, or IMEI numbers that can then be seen by thousands of businesses and other users who access the database when selling mobile devices. That number is an identifying number unique to each phone. It can be found on a sticker on the back of the device or sometimes inside the battery compartment. Each cellphone owner should write down their number and put it in a safe place.

Some law enforcement officials say the carriers -- like AT&T and Verizon -- could do a lot more to combat smartphone theft. New York Attorney General Eric Schneiderman recently demanded to know why carriers refused to activate a "kill switch" that Samsung had devised for its phones. It would have turned stolen phones into unusable bricks. 

Victims should always report the crime

In the event the phone is stolen, the device can essentially be deactivated, so that it won't work on a wireless network. But the victim has to report it and Lyberger says that doesn't always happen.

“A lot of people don't realize that if your phone is stolen you can report it and your carrier can keep it from being used,” he said.

If your cellphone is lost or stolen, your first step is to report it to your wireless carrier. It will immediately deactivate your account.

However, sensitive information will remain on your phone. If you have the ability to do a remote “wipe” of the device's memory, you should do so. Next, Lyberger strongly recommends filing a police report, even though they aren't likely to go out and make an immediate arrest.

What the police can do

“If your police or sheriff's office or state police has the ability to list it to the Nation Crime Information Center (NCIC), that's even better,” Lyberger said. It's in another database that's going to help recover that device or prevent that device from being used.”

The industry itself has been active recently on the stolen phone front. CTIA – The Wireless Association, has implemented new databases to prevent reactivation of stolen smartphones by U.S. carriers.

The purpose in trying to prevent stolen phones from being reused is to try to reduce the market for stolen phones. If there is less of a market, phones should become less desirable targets of thieves. But Lyberger is realistic about ever reaching that goal.

Global market

“Unfortunately a lot of phones stolen in the United States are sold elsewhere,” he said. “It's still going to be a huge problem.”

But every once in a while, there are small victories. Lyberger said he received an email not long ago from an individual who was prepared to purchase a smartphone on eBay.

Before making the purchase, however, Lyberger said the potential buyer checked the device on MyStolenPhone.com and discovered it was stolen.

One of the fastest growing personal property crimes in the U.S. is cellphone and smartphone theft. It should come as no surprise. These devices can often c...

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Wireless carriers will let consumers unlock their smartphones

Major wireless carriers have caved to pressure from the new Federation Communications Commission (FCC) chairman and agreed to let consumers unlock their cell phones when their contracts expire.

The new code agreed to by the carriers -- AT&T, Sprint, T-Mobile, U.S. Cellular and Verizon -- requires them to notify consumers when their phones are eligible for unlocking and to allow them to do so at no charge.

"We believe this agreement will continue to foster the world-leading range of devices and offerings that Americans enjoy today," said Steve Largent, president of CTIA, the wireless industry's trade group. "The robust and differentiated technological ecosystem has brought unparalleled and world-leading benefits to American wireless users, in the form of high-end and affordable devices, post- and pre-paid options, and with the world’s most advanced devices being launched first in the United States."

FCC Chairman Tom Wheeler -- a highly respected former wireless and cable industry executive and lobbyist -- has let it be known lately that the time has come for carriers to let consumers claim full ownership of their devices.

Currently, when consumers buy a smartphone or a plain old cell phone, they typically pay only a fraction of the actual cost of the phone. The carrier subsidizes the purchase and, in effect, amortizes it over a two- to three-year contract.

It's possible to buy unlocked phones now but they tend to be three or four times more expensive than the subsidized versions, so consumers may not be as thrilled with unlocked phones as one might think.

On the other hand, unlocking makes it possible to price shop among networks and, sometimes, to sign up for international service when traveling overseas at much lower cost than would otherwise be the case.

Largent cautioned there's also the little matter of frequencies. Different carriers use different frequencies and cell phones are generally manufactured to operate on the specific frequencies of the carrier that sells them.

“It is important that consumers know that unlocking devices may not necessarily mean full interoperability since devices that work on one provider’s network may not be technologically compatible with another  wireless provider’s network. Additionally, unlocking a device may enable some functionality of the device but not all (e.g., an unlocked device may support voice services but not data services when activated on a different network)," he said.

It's not clear when CTIA's new code will go into effect.

FCC Chairman Tom WheelerMajor wireless carriers have caved to pressure from the new Federation Communications Commission (FCC) chairman and agreed to l...

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New York asks wireless carriers why they killed Samsung's "kill switch"

Smartphone theft is a big problem. The phones are expensive and they often contain lots of personal information, including the owner's user IDs and passwords banking accounts and credit cards. Worse yet, consumers are often hurt or even killed when criminals try to steal their phones. 

So when Samsung developed a "kill switch" app that would let consumers "brick" their stolen smartphones, it seemed like a big step forward. But Verizon, AT&T, T-Mobile, United States Cellular Corporation, and Sprint have prohibited Samsung from pre-loading the app, and New York Attorney General Eric T. Schneiderman wants to know why.

Schneiderman is the co-chair of the Secure Our Smartphones (S.O.S.) Initiative, along with San Francisco District Attorney George Gascón and London Mayor Boris Johnson. They've been leading an international coalition of prosecutors, police chiefs, attorneys general, public officials and consumer activists in pushing phone manufacturers and carriers to roll out anti-theft technology immediately, to remove the economic incentives behind smartphone thefts.

“For the past six months, the Secure Our Smartphone Initiative has called on the industry to put safety before profits and stop this violent epidemic. Considering this, it’s disturbing that the nation’s leading smartphone carriers knowingly dismissed technology that could save lives,” Schneiderman said. “My office will determine whether these companies allowed their business relationships to influence their ability to take immediate action against theft. In the meantime, our coalition will continue to demand that the industry take every available step to ensure the security of our citizens.”

"When we met with the manufacturers in June there was agreement that these solutions would be implemented within a year," said District Attorney Gascón"That deadline is rapidly approaching, we cannot standby while the carriers continue to put up roadblocks."

The Attorney General’s letter urges carriers to embrace kill-switch technology “as a simple yet effective way to protect subscribers” from the spike in violent street crimes involving smartphone thefts, which has been observed in communities worldwide. A Harris poll of phone owners found that nearly 10% said their phone had been stolen at one point. Notably, one recent study found that lost and stolen cell phones cost consumers over $30 billion last year.

Anticompetitive issues?

In addition, the letter raises concerns regarding the independence of each carrier in deciding to reject Samsung’s proposed “kill switch” from a competitive standpoint, as the first carrier to feature free anti-theft technology could use that as a selling point for consumers who care about safety and security.

The letter notes, “The first carrier to incorporate a kill switch on Samsung smartphones would burnish its reputation not only as the carrier of choice for consumers who want the best anti-theft technology, but also as a responsible corporate citizen.” Attorney General Schneiderman has also made a "document hold" request, asking the carriers to preserve any documents and/or communications pertaining to the decision to reject the “kill switch.”

Schneiderman is requesting that all the leading carriers provide a detailed explanation of their decision to reject Samsung’s proposal and any other kill-switch technologies. Their replies are due to the Attorney General’s Office by December 31, 2013.

Attorney General Eric T. Schneiderman today sent letters to the chief executive officers of Verizon, AT&T, T-Mobile, United States Cellular Corporation...

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Kent State study: cell phone use, low grades, anxiety all linked

In all the history of humanity, we are the first generation of people to take complete 24/7 connectivity for granted, and while there’s undeniably wonderful benefits to constant communication, there’s also concern that maybe, just maybe, 24/7 connectivity might have a downside as well.

Researchers from Kent State University have published a study suggesting just that: “Frequent cell phone use linked to anxiety, lower grades and reduced happiness in students.”  A study of 500 university students showed that “for the population studied, high frequency cell phone users tended to have lower GPA, higher anxiety, and lower satisfaction with life (happiness) relative to their peers who used the cell phone less often. The statistical model illustrating these relationships was highly significant.”

Yet the study actually appears to show two different (though closely related) things: students with lower GPAs tended to have more anxiety than those with higher GPAs, and students who frequently used their phones tended to have lower GPAs.

Intriguing, but it’s uncertain exactly where correlation and causation lie: presumably, would heavy cell phone use not cause anxiety if the student still managed an A average? What about heavy phone use during semester breaks, when grades are not an issue? Is the problem simply “time spent on the phone,” or “time spent doing anything other than study or schoolwork?”

Semi-related anecdote: In 1953, science fiction writer Ray Bradbury published a short story called The Murderer, about a man considered insane by his futuristic society because he hates the constant communication devices people are expected to carry with them, to the point where he actually “murders” (destroys) some of these devices, including his “wrist radio.” The man’s science-fictional complaints include children who can call him via wrist radio at any time of day, no matter where he is, to remind him to pay their allowance, and a wife who got “hysterical” because “she had been completely out of  touch with me for half a day.”

Bradbury intended his 1950s audience to be utterly appalled by the thought of a future where you could never, ever be out of reach of anyone desiring your attention. Yet only sixty years later, that’s pretty much the status quo.

In all the history of humanity, we are the first generation of people to take complete 24/7 connectivity for granted, and while there’s undeniably wo...

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Android "Brightest Flashlight" app shared users' location without permission

You wouldn't expect your flashlight to spy on you, but the Federal Trade Commission says that's just what one of the most popular Android apps does. 

The "Brightest Flashlight Free" app has been download millions of times by Android users who, presumably, never expected that the app would report their whereabouts to the app developer, Goldenshores Technologies LLC, and its clients. 

The FTC filed a complain against the company and its manager, Erik M. Geidl, charging that the company's privacy policy deceptively fails to disclose that the app will report their geolocation and unique device identifier to third parties, mostly advertising and marketing networks.

In addition, the complaint alleged that the company deceived consumers by presenting them with an option to not share their information, even though it was shared automatically rendering the option meaningless.

The company has settled the complaint by agreeing to stop spying on its users and delete any information it still has about them.

“When consumers are given a real, informed choice, they can decide for themselves whether the benefit of a service is worth the information they must share to use it,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “But this flashlight app left them in the dark about how their information was going to be used.”

A few facts omitted

In its complaint, the FTC alleges that Goldenshores’ privacy policy told consumers that any information collected by the Brightest Flashlight app would be used by the company, and listed some categories of information that it might collect. The policy, however, did not mention that the information would also be sent to third parties, such as advertising networks.

Consumers also were presented with a false choice when they downloaded the app, according to the complaint. Upon first opening the app, they were shown the company’s End User License Agreement, which included information on data collection. At the bottom of the license agreement, consumers could click to “Accept” or “Refuse” the terms of the agreement.

Even before a consumer had a chance to accept those terms, though, the application was already collecting and sending information to third parties – including location and the unique device identifier.

The settlement with the FTC prohibits the defendants from misrepresenting how consumers’ information is collected and shared and how much control consumers have over the way their information is used. The settlement also requires the defendants to provide a just-in-time disclosure that fully informs consumers when, how, and why their geolocation information is being collected, used and shared, and requires defendants to obtain consumers’ affirmative express consent before doing so.

The defendants also will be required to delete any personal information collected from consumers through the Brightest Flashlight app.

You wouldn't expect your flashlight to spy on you, but the Federal Trade Commission says that's just what one of the most popular Android apps does. ...

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Non-Bell wireless carriers are more consumer-friendly, study finds

The Federal Communications Commission (FCC) will soon be holding auctions to award additional spectrum space to wireless carriers, and the Consumer Federation of America (CFA) says a recent study offers some valuable guidance for the commission.

The study -- Comparing Apples to Apples: How Competitive Provider Services Outpace the Baby Bell Duopoly -- concludes that unaffiliated wireless broadband service providers who compete against the “Baby Bells” offer products that are much more innovative and consumer-friendly.

"These findings reinforce our earlier analysis that placing limits on the amount of spectrum AT&T and Verizon can acquire in the upcoming auction of low frequency spectrum would strengthen competition and promote the public interest," CFA said in a statement. "The wireless broadband services offered by Sprint and T-Mobile match the 'Baby Bells' in their limited offerings, but their ‘unlimited’ services deliver lower cost and allow consumers to escape from the overage fees and contract locks that the Bells impose."

Significant differences

The study found statistically significant differences in the following attributes of broadband service:

  • monthly bill
  • cost per megabit
  • download speed
  • upload speed
  • presence of a data cap
  • type of data cap.

Comparing the wireless services offered by the Baby Bells to the other wireless service providers (Sprint and T-Mobile) CFA found that:

  • Non-Baby Bell U.S. wireless broadband service providers offer much more attractive service than services offered by Baby Bell wireless broadband providers.
  • Non-U.S. wireless broadband service providers offer much more attractive service than Baby Bell U.S. wireless service providers.

CFA said the argument fares quite well when careful comparisons are made about wireline broadband:

  • Municipal wireline broadband service providers offer much more attractive triple play services than other wireline broadband service providers in the U.S.
  • Non-U.S. wireline broadband service providers offer much more attractive triple play and broadband-only services than U.S. service providers.

CFA said findings that "the dominant incumbents charge more and deliver less attractive services reinforce our earlier conclusions that they are abusing their market power."

Since the Baby Bells already control a disproportionate share of the low frequency spectrum, rules that ensure a better balance in those spectrum holdings will be to the benefit of the consumer and the economy by strengthening competition in the wireless sector, the non-profit consumer advocacy organization concluded.

The Federal Communications Commission (FCC) will soon be holding auctions to award additional spectrum space to wireless carriers, and the Consumer Federat...

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FCC contemplates libertarian stance towards airborne cellphone usage

Government. All too often, it doesn't do what people want it to do, instead spending the people's time and money doing things people either don't care about or actively don't want.

No, we're not talking about Obamacare, although that might be a case in point, depending on your outlook. We're talking -- for now, at least -- about the Federal Communications Commission, an agency that has a long and well-deserved reputation for slavishly bowing to the needs of the telecom, cable and broadcasting companies it regulates while losing sight of the needs of everyday taxpayers.

Case in point: cramming. But don't get us started. The latest episode in that long and sordid tale is covered in a separate story today, one chronicling how states took matters into their own hands after waiting more than a decade for the feds to do something about cellphone cramming.

Now the latest buzz in telecom circles is that new FCC Chairman and former cable lobbyist Tom Wheeler wants to redo the nation's telephone network, converting it basically to Internet telephony. No one is taking to the streets to demand this, although the telephone companies would certainly like to sell everyone broadband and stop maintaining their copper-based telephone networks.

In the Washington, D.C., suburbs, the copper network is in such bad shape that police have been pounding on the wrong doors in the middle of the night, as the 9-1-1 system sends them to the wrong address, according to local news reports.

But never mind that. The FCC has taken up a new cause -- cellphones on airliners. The agency says it will soon propose allowing passengers to use their phones once flights reach cruising altitude, something nearly no one wants and several airlines already say they won't allow.

Last month, the Federal Aviation Administration (FAA) struck a similar blow for freedom, allowing the use of laptops, tablets, smartphones, etc. in flight as long as no talking was involved. 

Talk it up

The FCC basically says there's no technical or safety reason to prohibit the calls. That may well be true, although the airlines would have to install equipment that would enable on-board cellphones to make contact with cell towers on the ground. 

Actually, some engineers will tell you that cellphones work just fine in flight right now but have a tendency to "suck up" available bandwidth from ground stations. Equipment installed on airplanes would likely throttle down air-to-ground communications to a more reasonable level, these telecom engineers say. They asked not to be identified because their employers would object to their discussing the matter.

The FCC says it is carrying out the will of the people.  It cited a survey of 1,600 U.S. adults that showed 51% opposed allowing in-flight calls while 47% thought it was a good idea. Hmmm ... maybe the FCC needs to look at those numbers again.

Whatever happens at the FCC, Southwest, Virgin America and Delta all say they don't plan to allow in-flight phone calls, citing overwhelming sentiment against it.

Those travelers who are somewhat long in the tooth may recall the days when airliners had smoking and no-smoking sections, which was kind of silly since smoke tends to drift, but it was widely accepted and strictly enforced.

Perhaps what will end up happening if the FCC liberates airborne cellphones is something similar. It's pretty easy to imagine the airlines -- which now put a price on everything -- charging an extra $20 or so for seats in the no-yakking section. Amtrak has quiet cars, after all, why can't United?

Of course, if there's going to be a Quiet Class, it would have to bar babies and anyone else likely to start yelling, crying loudly or uttering indecipherable grunts. Which would probably include most of us, at least now and then.

Government. All too often, it doesn't do what people want it to do, instead spending the people's time and money doing things people either don't care abou...

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Verizon is the latest to go the showroom route

Yesterday, we wrote about Google's plans for pop-up "showrooms" around the country and now Verizon is trying something similar, with the first Verizon "superstore" opening in the Mall of America in Bloomington, Minn.

Of course, a bigger, cooler store won't solve many of the problems hundreds of consumers have written to ConsumerAffairs about. Their problems deal with the phones and Verizon policies, not the decor in the phone store.

Take Joe of Whites Creek, Tenn., who wrote to us earlier this month. 

"I purchased a new Galaxy S4 phone on a continuing contract. Five weeks later the phone died and according to a local Verizon representative the phone could not be repaired locally. The store ordered a replacement phone," Joe said. "On 11/5/13, a like-new Galaxy S4 phone arrived."

But "like new" was not what Joe was anticipating.

"I expected a new phone because my phone was only five weeks old. Five weeks ago I paid for a new phone and now Verizon expects me to accept a used phone. I am being strong-armed into taking a used phone or pay early termination fees on my phone and other phones on the contract. Are you kidding?"

Consumers rate Verizon Wireless

Despite such unpleasant experiences, Verizon is hoping its expanded stores turn into friendly spots where consumers can hang out, get their hands on the tablets, smartphones and other gadgets that will be on display.

There are differences, though. While Google's showrooms will apparently be open for only a brief time in the run-up to the holidays and will not actually be making any on-premise sales, the Verizon stores will be more or less permanent and will be actual stores -- meaning you'll be able to walk out with the merchandise under your arm.

Both companies are going for high-traffic locations, mostly in major malls.

Verizon, of course, already has plenty of smartphone stores but they tend to be on the small side. At a news conference yesterday, Verizon Chief Operating Officer Marni Walden said the expanded stores will not just be trying to move the merchandise, they'll also be educating consumers about the technology behind the devices, according to a report in AdAge

The Minneapolis superstore features different "zones," including a "Get Fit" zone, complete with a treadmill. There, consumers can get in a quick workout while trying out the activity-tracker bracelet FitBitZip, which among other things tries to calculate how many calories you're burning.

Another zone, "Amplify It," lets music enthusiasts try out different speakers and test DJ apps. The zones will change occasionally and some will be seasonal, the company said.

Smaller stores

Verizon's smaller stores are also being redesigned and turned into smaller versions of the superstores. AT&T is doing something similar with its stores, getting rid of counters and cash registers.

It's good, we guess, that the lumbering giants are trying to be cool -- you know, like Apple. But in their rush to copy Apple's successful retailing model, they might want to consider how well that model worked for J.C. Penney when it named former Apple marketing executive Ron Johnson to be its CEO. Johnson proceeded to remake J.C. Penney stores in Apple's image, which didn't turn out quite as planned.  

Yesterday, we wrote about Google's plans for pop-up "showrooms" around the country and now Verizon trying something similar, with the first Verizon "supers...

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States: Smartphone makers must do more to protect consumers

Smartphone giants Samsung, Google/Motorola and Microsoft need to do more to protect consumers from smartphone theft, according to 31 state attorneys general.

“The growing popularity of smartphones has made them valuable targets for thieves who sell them on black markets across the country and around the world,” said Delaware Attorney General Beau Biden.  “I’m concerned that this thriving black market puts consumers needlessly at risk of theft and violence."

Biden, who with New York Attorney General Eric Schneiderman is leading the multi-state effort said the smartphone industry "can and should do more to develop anti-theft features that reduce or eliminate the value of these devices to criminals.”

The AGs want the companies to develop technology that would permanently disable stolen smartphones. They say that would dry up the resale market and make the phones less attractive to thieves. 

“While some new anti-theft security features are encouraging, the response from manufacturers needs to be more robust,” the AGs said in a letter to the companies. “For example, to the extent these security features have an opt-out component, or require consumers to pay for them, they may not be very effective.” 

Kill switch

The attorneys general pointed to the South Korean requirement that devices be produced with a “kill switch” that would enable stolen devices to be permanently disabled as an example of technology that would protect consumers and discourage theft.

The AGs are members of the Secure Our Smartphones (S.O.S.) Initiative, a coalition of prosecutors, police chiefs, attorneys general, public officials and consumer activists launched earlier this year to combat the rise in violent street crimes involving smartphone thefts.  Coalition members are committed to pressing the industry to find effective solutions to stopping the epidemic known as “Apple Picking” – the theft of popular mobile communications devices such as smartphones and tablets.

Nationally, thefts of smartphones have spiked dramatically.  In the US, one in three thefts involves a mobile communications device, and Consumer Reports estimates that 1.6 million Americans were victimized by smartphone thieves in 2012.  Mobile electronic devices that are stolen across the US help feed the growing international trade in stolen devices.

Smartphone giants Samsung, Google/Motorola and Microsoft need to do more to protect consumers from smartphone theft, according to 31 state attorneys genera...

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Verizon tracks the movements of its smartphone customers

Google and the NSA, among others, have taken a lot of heat for tracking Americans' activities. Ah, but they're not really able to track every step you take, every move you make, as the old song has it.

So, who can? Why, your cell phone carrier, of course, and it turns out they're doing just that.

Verizon has a new division called Precision Marketing Insights that will initially help sports clubs and venues learn more about their fans by tracking their activities before and after the game.

Do all those ringside ads and promotions on the scoreboards really cause fans to stop off at Pizza King on the way home? Do NASCAR fans stop off at a Sunoco station after a day at the races?

The NBA Phoenix Suns tested the service last season, Ad Age reports today, and the Portland Trail Blazers are said to be thinking about it.

A byproduct

The technology behind this is pretty simple, once you have a massive cellular network in place. As Colson Hillier, VP of Verizon Precision Market Insights, explained it to Ad Age, tracking customers is really just "a byproduct of being a network operator."

That's because, even when you're not using it, your smartphone is constantly pinging the network, letting it know that it's available to take calls and receive text messages. 

"We can tie a device back to the cell towers which it registers against," said Hillier, and that pretty much tells you where each customer is, within a block or two.

While this could be a game-changer for sports teams, it could be an even more effective tool for retailers, as Hillier sees it. "There's no reason a retailer couldn't try to understand what's happening around their location," he said.

It's anonymized

Does this mean Home Depot would know that after you kicked the tires on all those lawn tractors, you ended up buying one at Costco?

Well, as usual, the official answer is no. Verizon says it "anonymizes" the data, scrubbing it of individual identities. However, and it's a fairly big however, it adds in demographic data that it gets from Big Data venders like Experian, so that the behavior patterns of, say, suburban married white males 25-49 with two children, would become evident.

Frequent stops at McDonald's perhaps?

Verizon executives at a recent conference said they had thought through all the privacy issues and didn't find any problems. Besides, they said, the terms and conditions section of their wireless service contracts makes it clear that they're allowed to do this. So, no problem.

Don't like it? Well, your phone has an on-off button.  

Google and the NSA, among others, have taken a lot of heat for tracking Americans' activities. Ah, but they're not really able to track every step you take...

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Rupert Murdoch adds a lifelogger to his wardrobe

You have to hand it to Rupert Murdoch. At 82, he may be one of the news business' oldest practitioners but this doesn't stop him from keeping up with -- and sometimes ahead of -- the times, not to mention the New York Times, which competes with his Wall Street Journal.

He has started all kinds of new high-tech businesses, become an active Twitter tweeter and now he has started wearing a smart bracelet, called a Jawbone UP.

“This is a bracelet that keeps track of how I sleep, move and eat – transmitting that information to the cloud,” Murdoch said last week in a speech to the Lowy Institute in Sydney, Australia. 

What's it do?

“It allows me to track and maintain my health much better. It allows my family and I to know more about one another's health too, which means it encourages more personal and social responsibility – instead of just running to the doctor when we don't feel well,” he said.

In other words, it's what in some quarters is called a lifelogger. It's something every trendy person needs, along with a blog, a Twitter account, a dashboard camera, Google Glass and, perhaps, a 23andme DNA profile (something we're currently testing here in the guinea pig department at ConsumerAffairs).

The personal bracelets are perhaps free of the taint of narcissism and self-absorption that might attach to some of these other trendy gadgets, since they really can be helpful in maintaining what we believe to be a healthy lifestyle. Or so we're told anyway.

More or less the same

The UP, Nike's Fuelband and the Fitbit Flex all cost around $150 and all do more or less the same thing. They allow you to track your physical activity, your sleeping patterns and, if you really want to record it, such vital data as what you had for lunch. You can manually enter your pulse rate, blood pressure and other fascinating data. Think of it as a pedometer on steroids.

It goes without saying that there are smartphone apps that will enable you to share all this data with a waiting world, should you be convinced that your friends, family and "friends" are just dying to know you had yogurt and fruit for breakfast, and slept six hours with a brief spurt of activity around midnight that appears to have been se ... oh, wait, there may be some data you don't want to share automatically.

The Jawbone braceletYou have to hand it to Rupert Murdoch. AT 82, he may be one of the news business' oldest practitioners but this doesn't stop him fr...

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Study: Wireless carriers' ad claims not matching reality

Meeting consumer expectations isn't easy but wireless carriers are having a paticularly hard time of it, according to a new Interakt study that finds more than one-third of wireless customers have switched carriers because of what they see as broken promises.

Another 13% said they were considering switching and only 20% felt their carrier was meeting the claims it made when they signed up.

It's not so much what the salesperson tells them when they buy their phone or sign up a deal to switch carriers. Rather, it's the over-the-top advertising that seems to promise the sky.

Maybe that's why T-Mobile -- which has a smaller ad budget than its bigger competitors -- came out on top in the study. Only about a quarter of T-Mobile customers said the company's performance was inconsistent with its advertising, while a third felt that way about Sprint and Verizon.

AT&T got the worst rating, with 37% saying its advertising made big promises that its network didn't deliver. 

One area where consumers say some companies are doing much better than others is in their response to customer questions and comments on social media. Interakt said that, once again, T-Mobile did the best, responding to Twitter questions in an average of 35 minutes.

Verizon brought up the rear at 20 hours. It might want to read the survey carefully, as consumers said inadequate response to customer comments could cause them to switch carriers.

Meeting consumer expectations isn't easy but wireless carriers are having a paticularly hard time of it, according to a new study that finds more than one-...

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Digital distractions increasingly common in college classrooms

Would you spend thousands of dollars – and maybe go deeply into debt – to attend college, then spend time playing with your smartphone or posting to Facebook while the instructor tries to deliver that expensive education?

Wouldn't be too bright, would it? Yet in college classrooms across the country, that appears to be what's going on. In fact, Barney McCoy, an associate professor of broadcasting at the University of Nebraska, conducted a study that finds the typical college student plays with his or her digital device an average of 11 times a day while in class.

A generation ago, the typical college professor wouldn't have tolerated it, arguing the behavior distracts the user, as well as other students. Today's students will give you no argument. In McCoy's study more than 80 percent admit that their use of smart phones, tablets and laptops can interfere with their learning. More than a fourth say their grades suffer as a result.

Yet they do it anyway. Is it that they just can't help themselves?

Not a problem?

"I don't think students necessarily think it's problematic," McCoy said. "They think it's part of their lives."

McCoy says he got interested in the topic shortly after launching his teaching career seven years ago, at just about the time smartphones were becoming more common. From the front of the classroom he would begin to notice a student here and there bowing over a digital device, reading or typing out a text.

The view from the back of the classroom, he says, was even more revealing. When a colleague came in to guest-teach a class, McCoy stood in the back of the room and was shocked by the lack of attention.

"They've got their laptops open, but they're not always taking notes," McCoy said. "Some might have two screens open -- Facebook and their notes."

Intrigued, McCoy decided to try to set out to measure the distraction scientifically. Just how common is it for students to tune out their professors in favor of staying in touch with friends or playing games?

The study

During fall semester 2012, he interviewed 777 students at six universities in five states about their classroom use of digital devices for non-instructional purposes. Were students distracted by others' use of digital devices in the classroom, he wondered? Should colleges and universities do more to limit their classroom use?

Here's what he found: 35% of students played with their phones or tablets in class one to three times per day. Twenty-seven percent did it four to 10 times while 16% said they did it 11 to 30 times per day. Only eight percent said they never used digital devices in class for non-educational purposes.

What was drawing students' attention to their digital devices? Nearly 86% were texting, 68% were checking email and 66% were reading or posting on social networks. Eight percent admitted by were playing a game.

Why do students say they use their smartphones and other digital devices in class? Seventy percent said they want to “stay connected.” Fifty-five percent say they use them to fight boredom.

Yet 90% admit that when they use their phones in class they aren't paying attention. Eight percent have admitted missing instructions. More than a fourth said they have lost grade points because of their digital habits.

Stockholm smartphone syndrome

But don't expect students to put their gadgets away. Charlie Osborne, a writer at technology site ZDNet and a former teacher, is well-acquainted with the pattern. She calls it Stockholm smartphone syndrome

“You don't fight against physical distractions anymore as a teacher; instead you combat the digital,” she writes. “With the wealth of information and entertainment available, mere mortals stand no chance unless we physically pry the smartphone out of a child's fingers and brace ourselves to endure the torrent of rage and anxiety afterwards.”

Indeed, students recoil at the notion of leaving their smartphones at home. In McCoy's survey, 91% of college students opposed a ban on digital devices in the classroom. McCoy says the issue isn't going away.

A 2012 study showed that two-thirds of students age 18-29 own a smartphone, which gives them mobile access to the Internet as well as texting and email capabilities. A 2013 study by Experian Marketing Services found that 18- to 24-year-olds send and receive an average of 3,853 text messages per month.

Automatic behavior

"It's become automatic behavior on the part of so many people -- they do it without even thinking about it," McCoy said.

McCoy is trying to reach a compromise with his students' digital obsession. He says he has limited the length of his lectures to give students periodic breaks so they can update Facebook or send a tweet. In a sly move he periodically asks students to use their phones for classroom purposes, asking them to look something up, for example. It doesn't work.

"I can guarantee you even when I do those things, it's still not going to keep students from having a text conversation," he said. "They'll multi-task while they're doing it."

Would you spend thousands of dollars -- and maybe go deep into debt -- to attend college, then spend time playing with your smartphone or posting...

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Magicjack: Good idea but many complain of bad service

Nobody’s perfect, and neither is any company; even the best-run business is bound to goof up on occasion. So if we only get one or two reader complaints about a given company, this could merely indicate a good company having a bad day. But when a company inspires a near-constant deluge of similar-sounding reader complaints, we’re more likely to suspect a trend.

Magicjack appears to be one of those companies inspiring a steady stream of complaints every month—indeed, every week. And when we limit ourselves to only the past fortnight’s worth of Magicjack letters, we see two consistent trends: complaints about the quality of the service itself, and either difficulties or “hidden” charges involved in porting phone numbers to or from Magicjack.

In fairness, though, we must point out that the charge to transfer numbers to Magicjack is not “hidden.” Magicjack’s website does say “Additional fees apply to transfer a number.” Granted, it says this in extremely tiny print at the very bottom of the webpage—but consider this the n-millionth piece of evidence in support of the theory, “You need to read all the fine print before you sign a contract.”

Service expiring

Consumers rate Magicjack

Rich M. of Marlton, New Jersey told us he ported his home phone number to Magicjack for a one-year subscription. Everything went fine until about five weeks before that subscription was set to expire, and then: “Every time I pick up the phone to make a call, [I] get a warning that the number is about to expire and the call I dialed does not go through. The support folks are no help at all, telling you to renew or just suffer the messages until you do. After I had the Magicjack for awhile they removed the ability to forward the number without notice also. They just do not seem to be very customer-friendly.”

Rich is the only reader to post a recent complaint about those bizarre subscription-renewal messages – but the calls not going through at all is a constant refrain. Ira I. from Speedwell, Tenn., summarizes his Magicjack experience as “Missed calls, unrepaired problems, and nickel/dime you to death .... Been told by bank, school, health department, and doctor's offices that they have tried calling but couldn't get through. Basically any place with a multi-line switchboard cannot call through.”

Luis C. of Miami said that when he bought Magicjack, “the unit only worked three days and went off. The help could not solve the problems and I asked to cancel my services and de-port my number to my previous carrier. After 3 weeks trying to get attention to my request I have not being able to get it back, always a delay and an excuse. Awful service.”

Jaeho L. of Rockville, Maryland also had problems right out of the gate. “I used this service and soon I realized: it's not working properly. When I pressed the button, it did not recognize it at all. I wasted my time so much to resolve this issue by chatting with their serviceman (they do not have a service phone number, even).” Jaeho returned his Magicjack soon enough to get his purchase costs refunded, but was told “they cannot refund for my phone number transfer fee ($19.99) and ask money ($32.34) for port out service if I want to keep the previous phone number, which is free in most companies.”

George S. of Calgary, Alberta said he couldn’t get his Magicjack to work at all, though in his case it’s possible the problems stemmed from his international status: “I bought a new MJ plus in Canada and came to Mexico. I registered it and before I could finish registration it stopped. I tried for days to get it going with their help desks but it won’t even show on my computer …. I reported it to the Better Business Bureau of Florida but they just keep replying to me: it’s working, you just have that to plug it in and register it.”

Repairs don't last

Another common refrain is repairs lasting only a short while before old problems returned. Ronald H, of Lee’s Summit, Missouri, “found that the sound quality was so bad that I couldn't talk on the phone. I contacted customer service numerous times and each time they would have me plug the magic jack into the computer for an update. It would work a little better for a short time, and then the sound quality would be just as bad.”

John D. of Long Pond, Pennsylvania told us, “Magicjacks are basically a scam, any way you put it. So many problems to mention …. it also seems that every time Magicjack comes out with a newer version, older ones malfunction, forcing us to buy the latest Magicjack.”

Joseph F. of Monroeville, Alabama, had similar complaints and concluded “It is ... a waste of money and time. I lost my [phone] number and important calls.”

If you have a complaint about your Magicjack service, many web postings suggest you can try emailing dan@magicjack, though John D. from Long Pond told us that it “didn't help to e-mail dan@magicjack.com. Someone will reply, quote, “Dan asked me to help you, what can I do for you?”

Nobody’s perfect, and neither is any company; even the best-run business is bound to goof up on occasion. So if we only get one or two reader complai...

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Apple remains the top platform for mobile media

You can tell a lot about the state of mobile technology by measuring viewership on various mobile platforms. A new report suggests Apple remains the mobile device of choice, mainly because of the iPad tablet.

Opera Mediaworks, a mobile ad platform, tracks the type of device that plays its ads. In its report on the third quarter of 2013 the company notes that of the 60 billion ad impressions per month during the period, 44% were displayed on iOS devices.

But tablets make up a big chunk of online viewing. When the iPad is removed from the mix, the iPhone had a 31% share, barely edging out Android's 30.3%, a virtual tie when it comes to ad impressions.

Tablets' impact

Smartphones have proliferated since 2009 but tablets are quickly catching up. When it comes to ad impressions, tablet usage has doubled in the last year, with tablet impressions jumping from 5.0% in 2012 to 10% this year.

"This quarter saw many new trends as growth jumped and monetization on mobile categories broadened, among other things," said Mahi de Silva, CEO, Opera Mediaworks. "As we head into the busiest time of the year for advertisers in Q4, we will see exciting new formats that incorporate video and voice technologies slated to run in the last quarter of the year."

And we are likely to see them on an evolving set of mobile devices. While Apple holds the lead in tablets, Samsung continues to broaden its base of smartphones and has beaten Apple to the punch on release of a smartwatch, the Samsung Galaxy Note 3 Gear Smartwatch.

It's a smartphone you wear on your wrist, like a watch, costing $300 at Verizon Wireless with a two-year contract. According to Samsung it's packed with features and tools and comes with a full HD touchscreen, S Pen and long-lasting batteries.

History of wrist devices

Initial promotion plays on the role a smartwatch has played in popular culture over the last half-century.

Initial reviews

Initial reviews have not been kind. IGN says it “falls short when trying to deliver basic functions that one would want in a wearable companion device,” concluding it's “not worth your time.” 

CNN Money says the Samsung Galaxy Note 3 Gear “doesn't cut it.” The Gear offers a glimpse into the future of smartwatches, the review declares, “but unfortunately, it's not ready yet.” 

The Dallas Morning News points out that the smartwatch requires the user to also have the Samsung Note 3. Otherwise, it doesn't work.

“Without the Note 3, the watch can’t even tell time, much less do any of its fancier tricks.” the review declares.

However, it sees some potential, saying the device does “a few nice tricks and holds the promise for more.” 

Samsung is not the first company to produce a smartwatch. Other manufacturers, such as Sony and Nokia, got products into the marketplace first.

You can tell a lot about the state of mobile technology by measuring viewership on various mobile platforms. A new report suggests Apple remains the mobile...

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T-Mobile eliminates international roaming charges for data in 100+ countries

Ever since its merger with AT&T went south, T-Mobile has been on a roll. It's eliminated long-term contracts, subsidized phones and in the process says it has signed 685,000 new customers in the second quarter of 2013 -- more than AT&T, Verizon and Sprint combined.

While these mildly revolutionary changes have been popular with consumers, they've infuriated T-Mobile's big competitors, who had things set up just the way they liked them.

Now, T-Mobile -- which has taken to calling itself "the Un-carrier" -- has delivered another kick to the shins of the Big Two and a Half by eliminating international data roaming charges in more than 100 countries. Just to make sure it has everyone's attention, it has also signed Shakira as its newest "collaborator." 

Or as T-Mobile puts it, it's "delivering unlimited global data at no extra charge in 100+ countries -- making the company's home data coverage area larger than AT&T's and Verizon's combined."

"The cost of staying connected across borders is completely crazy," said John Legere, president and CEO of T-Mobile US, Inc., at an outdoor concert in New York a few nights ago. "Today's phones are designed to work around the world, but we're forced to pay insanely inflated international connectivity fees to actually use them. You can't leave the country without coming home to bill shock. So we're making the world your network -- at no extra cost."

Americans take about 55 million trips to destinations outside the U.S. every year, Legere noted. When U.S. customers use their phones abroad the way they normally do at home, their costs often total $1,000 a day or more. So more than 40 percent of customers turn off data roaming completely. Another 20 percent more say they would if they knew how.

"It doesn't have to be this way," Legere said. "The truth is that the industry's been charging huge fees for data roaming. But what's most surprising is that no one's called them out -- until now."

Details, details

Consumers rate T-Mobile Billing Disputes

As T-Mobile explains it, it's expanding the home data coverage for most Simple Choice customers to include more than 100 countries, at no extra charge. Starting Oct. 31, these Simple Choice individual and business customers automatically get unlimited data and texting in more than 100 Simple Global countries worldwide; they will pay a global flat rate of 20 cents per minute for voice calls when roaming in the same countries.

Eligible customers on T-Mobile's popular Simple Choice plan won't have to activate anything or pay an extra monthly fee.

T-Mobile also announced a new plan for calling between the U.S. and other countries -- the Stateside International Talk & Text feature. It said customers never pay more than 20 cents a minute to any number in any Simple Global country, including mobile to mobile.

Calls to landlines in more than 70 of these countries are unlimited and included at no extra cost. Unlimited texting is also included to all countries. Stateside International Talk & Text is available to most Simple Choice customers for $10 a month.

In network news, T-Mobile announced that its latest-generation 4G LTE network is now nationwide, reaching more than 200 million people in 233 metros across the United States.

Shakira, T-Mobile's new "collaborator"Ever since its merger with AT&T went south, T-Mobile has been on a roll. It's eliminated long-term contracts,...

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Vonage buys a smaller company, says it will benefit from the Vonage brand

Internet phone company Vonage is buying Vocalocity, another Internet phone company, for $130 million. Vocalocity caters to small- and medium-sized businesses, and the theory is that being part of Vonage will help it grow.

Vonage CEO Marc Lefar said Vocalocity could benefit from Vonage's branding.

Could be. Out of curiosity, we checked our customer-review archives to see if any Vocalocity users ever wrote us to say “I’m not happy with the service here, but I’m sure it could benefit from Vonage’s branding.” But we found no complaints about Vocalocity at all (unsurprising in retrospect, since Vocalocity sells services to small businesses rather than everyday consumers).

Nor did we find any recent complaints about Vonage’s actual service—though we did find multiple complaints from people trying to cancel it. Like Molly W. from Salina, Calif., who wrote us in August to note, “Vonage does not allow the cancellation be done through their website or by e-mail” and “I asked if I will get partial credit since I only used 8 days in this billing cycle and [the representative said] no. She said that's in the contract. I have not had any company that does not issue partial refund when the service is cancelled during the billing cycle.”

Something similar happened to Molly’s fellow Californian "OS" from Northridge, who told us in September that, “It took forty minutes to close my account. And yes they charge fee in advance and they are not going to refund the charges.”

Three years

Jammyette H. of Mount Pleasant, South Carolina, had Vonage for three years before switching to a different provider. Cancelling her account proved to be a long, drawn-out and extremely complicated process, and when she told us about it this August, she concluded, “I was happy with Vonage until this process of canceling and not being refunded for unused days.”

And we had several similar complaints from the past few months, all boiling down to “The service is okay but cancelling it is a nightmare.”

On the other hand, in August we also heard from Laurie B. in Fairfax, Va., who told us “After reading the horror stories all over the web about cancelling Vonage, I was prepared for the worst when I decided to cancel my service after 6 years as a customer with them.” Laurie was indeed prepared—before calling Vonage, she called her credit card company and arranged to cancel any further payments to Vonage.

Still expecting trouble, she called Vonage and spoke to a representative who verbally assured her that her service was cancelled, and she would soon get an email confirming this. “To my surprise,” Laurie wrote, “I received the email with a confirmation number in less than 10 minutes. The Vonage device stopped giving dialtone within 30 minutes of my call to them. So, it looks like everything went smoothly. I know that people have reported sometimes getting collection calls years later, so I intend to keep this email and my call recordings in case they are needed.”

So perhaps Vocalocity really will benefit by coming under the Vonage umbrella—so long as customers with stories like Laurie’s can become the rule, rather than the exception.

Vonage, the Internet phone company, is buying Vocalocity, another Internet phone company, for $130 million. Vocalocity caters to small- and medium-sized bu...

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Samsung's latest smartphone is nothing if not curvy

Back in the day, people got excited about cars and manufacturers obliged by hanging all manner of ridiculous bling on their new models -- most notably, the huge fins that graced American cars in the 1960s.

These days, nobody much cares about cars. Instead they get excited about iPads and smartphones. So manufacturers go to great pains to differentiate their portable device from their nearly identical competitors.

The latest craze? Flexible screens. Actually, we're not quite there yet although LG says it will soon have a flexible display for smartphones. You might be able to curl it around your wrist. Or even your neck. 

But Samsung is taking no chances. The company once accused of copying Apple's iPhone now is determined to be the first out of the gate with whatever innovation strikes consumers' fancy at the moment. Its latest effort is the Galaxy Round -- featuring a 5.7-inch concave screen mounted in a curved casing.

Why would you want this? Well, take a look at the palm of your hand. It's not flat, is it? No, of course not. It's a little bit curved. So, the theory is the Round will snuggle more cozily in your palm than that dumb old flat iPhone.

Don't get too excited yet though. The Round is currently available only in Korea and costs nearly US$1,000. Whether it will ever be offered for sale in the U.S. remains to be seen.

If you're really longing for something curvy, you could probably find an old Blackberry Curve at a flea market, even though -- despite the name -- the Curve wasn't really curvy.

Back in the day, people got excited about cars and manufacturers obliged by hanging all manner of ridiculous bling on their new models -- most notably, the...

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Kids and smartphones: the debate continues

It's remarkable when you stop and think that the smartphone – outside of the Blackberry – really didn't exist before 2007. Now, in less than a decade, almost everyone has one.

Earlier this year Nielson reported that 61% of Americans with a mobile device had a smartphone. The Blackberry now claims a small share while the vast majority use either an Android device or an iPhone.

What may be even more remarkable, however, is the number of children who have access to a smartphone or some other mobile device. A year ago the NPD Group surveyed families with children between the ages of two and 14. It found fewer than half of those families reported owning a smart device. This year, the number has soared to 79%.

A year ago only a third of children in the families with smart devices used them. This year the survey shows 51% use smartphones or tablets and 40% of the children have devices of their own, or are primary users.

Positives and negatives

This trend tends to be viewed both positively and negatively. Some educators see the plus side, noting the huge increase in the number of educational apps for smartphones and tablets. A recent accounting by Education.com found more than 3,400 education apps at the iTunes store. Many of them are designed for very young children, between the ages of two and five.

Many educators believe the potential benefits outweigh any negatives. Children tend to naturally take to technology and lessons imparted via technology media can be effective, they say.

Their mobility is another advantage. They are available in almost any location and, should a child become antsy, a parent can pull out a mobile device equipped with some educational app in the form of a game, to keep the child occupied.

But there are issues with handing your toddler a smartphone, other experts say. Dr. Carolyn Jaynes, a learning designer for Leapfrog Enterprises, suggests waiting until your child is at least in preschool before introducing them to the world of mobile gadgets.

Real-world experiences

“Children under two years of age learn best from real-world experiences and interactions, and each minute spent in front of a screen-based device is a minute when your child is not exploring the world and using their senses, which is extremely important in their development process,” she said in an interview with PBS.

However, she concedes that preschoolers can benefit from educational content, presented through an electronic media.

As children get older the pressure to allow them to use a mobile device gets even greater. Smartphones – and even tablets – are fast becoming standard equipment for teens, and even some pre-teens.

That, of course, raises another set of issues. It's easier to monitor a child's use of the Internet when their computer is a desktop set up in the family room. It's a lot harder to monitor their online activities when they can access the Internet wherever they happen to be.

Help for parents

Lookout.com has published a helpful guide for parents of older children who are just now confronting this issue. 

Dr. Pamela Rutledge, director of the Media Psychology Research Center, which conducts research into media use, says a big factor in deciding to grant your child's request for a mobile device is the reason for the request. Often, she says, parents reject the request out of hand before hearing the reason for it.

Charlie Osborne, journalist and former teacher, is not a big fan of giving children smart devices. As a teacher, she says she constantly had to cope with the interruptions mobile devices caused in class.

Writing at ZDNet, Osborne rejects the notion that today's digital generation is growing up to be history's most advanced.

"As a former teacher, I don't see it,” she writes. “Children are not the most advanced – they're the most distracted. Furthermore, they are liable to become the most idiotic and lacking in social skills as their eyes are turned away from learning about their environment, instead commenting on their friend's latest duck-pout profile picture on Facebook.”

It's remarkable when you stop and think that the smartphone – outside of the Blackberry – really didn't exist before 2007. Now, in less than a ...

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Walmart launches smartphone trade-in program

Want to trade in your smartphone without a hassle? Walmart has a program that it says will let you do exactly that.

Starting Sept. 21, U.S. consumers will get immediate credit towards the purchase of a new smartphone when they trade in their current device at an of more than 3,600 Walmart stores and Sam’s Club locations across the country.

The program offers a credit of from $50 to $300 for more than 100 for working, non-damaged smartphones. Examples include: $300 for an Apple iPhone 5, $175 for a Samsung Galaxy SIII and $52 for a Samsung Galaxy S2.

"Smartphones have become a part of our customers' everyday lives and as new devices launch more frequently, trade-in programs are becoming more popular,” said Steve Bratspies, executive vice president of general merchandise for Walmart U.S. "More and more, customers are choosing where they purchase new smartphones based on where they'll get the best value for their trade-ins. Our goal is to give them more value for their old devices and the lowest price for their new one.”

What to do

Customers should bring their working smartphone to an associate in the electronics department at Walmart stores and Sam’s Club locations. In partnership with CExchange, the value of the smartphone will then be assessed by answering simple, unbiased questions on the device’s condition and specifications.

Once accepted, the trade-in value will be applied to a new smartphone of their choice -- like the Apple iPhone 5 for $98 or the Samsung Galaxy S4 for $138 -- with a two-year contract from AT&T, Verizon Wireless or Sprint.

Customers can also apply the trade-in value to smartphones available with prepaid plans like Straight Talk, which is only available at Walmart, which provides talk, text and data for $45 a month.

Mother Nature benefits

Walmart says the trade-in program is consistent with its sustainability goals and will help customers and members recycle smartphones responsibly. According to CExchange’s green policy, smartphones traded-in at Walmart and Sam’s Club will be never be sent to landfills, domestically or internationally.

“We’re saving our customers money while keeping thousands of smartphones from going to landfills each year,” said Bratspies. “Walmart’s smartphone trade-in programs are good for business, our customers and the environment.”

Want to trade in your smartphone without a hassle? Walmart has a program that it says will let you do exactly that. Starting Sept. 21, U.S. consumers will...

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Samsung introduces its watch-phone, the Galaxy Gear

Apple likes to accuse Samsung of making copycat products, but today Samsung unveiled its "smartwatch," the Galaxy Gear, at a Berlin trade show while Apple has yet to introduce its rumored equivalent device.

Samsung may also be putting the arm on Google, which has been promoting its eyeglass-like Google Glass product for months but is not yet making it available for purchase by the non-technorati-elite. Sony also has a smartwatch though it hasn't attracted much attention in the U.S. 

Samsung says the Gear will go on sale as early as this month and will be priced at $299.

Not a stand-alone

But while Samsung has stunned the industry with its speed in getting new products to market, some may be disappointed with the relatively limited functionality of the Galaxy Gear. The company says it won't be a stand-alone device, but will instead work as a companion device to Samsung's Galaxy Note 3, a new smartphone-tablet the company also announced today. It's not compatible with the Galaxy S4 smartphone, Samsung's current flagship phone.

The Gear has a relatively small screen and doesn't yet have the bendable display that had been rumored, although Samsung is known to be working on a flexible display.

The Gear's built-in speaker does, however, allow users to conduct hands-free calls directly from the Gear.

"For example, a user leaving the grocery store, whose hands are full with shopping bags, could still make a call by speaking into the Galaxy Gear without touching the screen. Users can also draft messages, create new calendar entries, set alarms, and check the weather on the Galaxy Gear with S Voice," a feature similar to Apple's Siri, the company said in a news release.

Easier and more enjoyable

“Samsung’s ongoing smart device innovation leadership reflects our commitment to listen to our consumers, who want their daily lives to be easier and more enjoyable. Samsung Galaxy Gear benefits consumers by integrating smart device technology even deeper into their everyday lives, and bridges the gap between the mobile device and fashion worlds to create truly wearable technology,” said JK Shin, CEO and President of IT & Mobile Division, Samsung Electronics.

“Samsung Galaxy Gear frees users from the need to constantly check their smart devices while maintaining connections. It provides what we call ‘smart freedom,’ by allowing users to choose how, why, when and where they are connected,” Shin said.

Galaxy Note 3 & Galaxy Gear (Samsung photo)Apple likes to accuse Samsung of making copycat products, but today Samsung unveiled its "smartwatch," t...

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Beware of smartphone snatchers

Here's something else to worry about when you are out in public. Thieves are increasingly targeting consumers with smartphones and tablets in their hands, grabbing the devices and sprinting away.

It's a new wrinkle on the old crime of purse-snatching. For years thieves have preyed on women with a pocketbook slung over their shoulder. The thief moves alongside the victim, rips the purse from their grasp and makes a clean getaway before the victim has time to react.

But a purse may or may not have things of value inside it. If there is no cash, the thief has risked capture for very little reward. A smartphone is different. The phone or tablet itself – especially if it is the latest iPhone or Android model, may be worth at least a couple hundred dollars. Beyond that, it might have information on it of even more value to an identity thief.

Often the crime occurs on a subway. Someone standing near the door may be busy texting a friend or reading their email. They aren't paying attention to their surroundings.

Careful timing

The thief times his move very carefully. Just before the door to the car closes, he lunges forward, grabs the smarthphone and jumps through the portal, just as the doors are closing. The shocked victim can only look on in stunned disbelief as the train moves forward and the thief calmly walks toward the exit.

Other means of public transit are equally dangerous. Thieves are also known to target people on buses.

“It’s a crime of opportunity,” Hawthorne, Calif., Police Lt. Scott Swain told KCBS-TV in Los Angeles. “You see a victim walking down the street, talking on the phone, playing on the phone, and it’s just a matter of running up, grabbing the phone, and getting out of there.”

The Washington, D.C., Metro system has seen a big jump in smartphone and tablet thefts.

 “You wouldn’t go around flaunting this $300 in the open. And yet, that’s effectively what you’re doing when you’re not paying attention with your electronic device,” Metro Transit Police Chief Ron Pavlik said recently.

Perlik released this video of an actual smartphone crime in progress:

Story continues below video

In Los Angles, police say the crime is growing at a double-digit rate. In San Francisco, police say nearly half of all 2012 robberies included smartphones. According to the National Consumer League, 1.6 million U.S. consumers reported smartphone thefts in 2012. Not all were snatched, but many were. 

Smartphone snatching appears to be a crime with high percentages favoring the thief. If they get away with their heist they can easily find a buyer. Before selling it, however, they may use it to make phone calls, make purchases, and see what kinds of unprotected data are on the device that could lead to an even bigger payday.

Some thieves just want a smartphone without paying for it. They might use it until you get around to suspending your account. After that, they head to a cellphone store and activate the phone on their own account. At any rate, savvy consumers should take steps to avoid being a victim.

What to do

The first step, police say, is to be cautious when you use your smartphone in a public place. Perhaps a subway car is not the best place to be texting. If you have the device in your hand and are preoccupied, you're a pretty easy target.

If you are using your cellphone or a train or bus, don't stand near the door. If you are in the middle of the car, it's much harder for a thief to grab your phone and make a getaway, though it's not impossible. The best course of action may be to keep the phone in your purse or pocket.

Don't walk down the sidewalk using your device. It's probably not safe, to begin with. But you are making yourself a tempting target. Talking on the phone might also make you vulnerable. There have been plenty of reports of thieves snatching a phone away from a victim's ear, in mid-conversation.

With an increasing number of children now using smartphones of their own, this group may be especially vulnerable. After all, you know what they say about taking candy from a baby.

Password protection

This growing crime also underscores the need to employ security safeguards on your phone. At a minimum, you should have password protection on your device, with the ability to lock it. An encryption app could be a good move, along with an app that can track your device if it goes missing.

Some urban police departments have begun registries for smartphones and other mobile devices. Consumers can register their phone's serial number so that if it is lost or stolen, it will trigger an alert if someone later tries to sell it or use it to open a new account.

To combat the problem, the Federal Communications Commission (FCC) spearheaded a plan to produce a national database. Consumers can now call their carrier to report their stolen smartphone. It will then be blocked from being used again.

Here's something else to worry about when you are out in public. Thieves are increasingly targeting consumers with smartphones in their hands, grabbing the...

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Is Internet access and smartphones really what Third World countries need?

First it was Google with its idea of floating antenna-equipped balloons over impoverished areas of the world. The balloons, part of something interestingly called "Project Loon," would beam down the Internet to the huddled masses below.

Now it's Mark Zuckerberg of Facebook fame and fortune. He and a small group of philanthropic companies like Samsung, Qualcomm and Nokia have a plan labeled Internet.org to extend broadband coverage -- and smartphone access -- to those same impoverished areas.

"Everything Facebook has done has been about giving all people around the world the power to connect,” Zuckerberg said in prepared remarks yesterday. “There are huge barriers in developing countries to connecting and joining the knowledge economy. Internet.org brings together a global partnership that will work to overcome these challenges, including making internet access available to those who cannot currently afford it.”

After all, studies have shown that Internet access improves the economy, creates jobs and boosts the fates of pornographers, slave traders and terrorists, so these are probably really great ideas.

Bill Gates doesn't think much of these high-flying ideas though. Asked about the Google balloons a few weeks ago, he said:  "When you're dying of malaria, I suppose you'll look up and see that balloon, and I'm not sure how it'll help you."

Gates, who with his wife Melinda, has contributed billions of dollars to rid developing nations of malaria, found the idea disappointing. "When a kid gets diarrhea, no, there's no website that relieves that," he said.

Billions of new friends

Zuckerberg's idea also is getting a chilly reception in some quarters. While it would probably add billions of "friends" to Facebook and sell billions of Nokia phones, it's not immediately apparent how it solves the severe health crisis that holds impoverished nations back. 

It's not entirely without redeeming benefits though. The National Security Agency (NSA) would no doubt be delighted to have billions of more people to spy on, said Erik Sass, who writes The Social Graf blog at MediaPost. 

"Among those billions of currently unconnected folks are doubtless some very angry people who will use the Internet to connect with likeminded individuals and possibly join a terrorist organization -- and the NSA will be watching," he said. The problem, Sass said, is that "NSA’s process for doing so is, shall we say, 'data intensive,' as you have to collect a lot of information on a lot of people to catch the ones you’re looking for.

He recalled the recent statement of the NSA director, General Keith Alexander: “You need the haystack to find the needle.” Zuckerberg and Google would be making the haystack a lot bigger.

Here's the syrupy video that the Internet.org promoters released yesterday:

Zuckerberg discusses his idea in this worshipful CNN pieceFirst it was Google with its idea of floating antenna-equipped balloons over impoverished are...

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Jesta Digital/Jamster settles FTC cramming charges

Consumers whose cell phone bills were allegedly crammed by Jesta Digital are in for a refund. In addition to the refunds, Jesta -- which also does business as Jamster -- will pay $1.2 million to the Federal Trade Commission (FTC).

The commission’s complaint claims the global mobile marketer also ran phony virus-scan ads on consumers’ Android mobile devices while they played the Angry Birds mobile app. The ads, which falsely claimed that a virus was detected on the consumer’s mobile device, incorporated an image of a robot designed to look similar to the Android operating system’s robot logo:

When consumers clicked on the ads, Jesta presented them with a series of screens or landing pages that included bold and prominent language and visuals about protecting Android mobile devices from viruses. While a screen contained a subscriber button, the FTC maintains that if consumers clicked anywhere on the screens or landing pages, Jesta charged them $9.99 per month directly on their mobile bill for ringtones and other mobile content.

If consumers actually attempted to subscribe and download Jesta’s so-called anti-virus software to their mobile devices, the download often failed, according to the FTC complaint. Jesta’s internal emails quoted in the FTC’s complaint are particularly illustrative. In one email, a Jesta official was “anxious to move [Jesta’s] business out of being a scam and more into a valued service.”

Novel billing method

Jesta charged unsuspecting consumers through a novel, little-used billing method known as Wireless Access Protocol, or WAP, billing. WAP billing captures a consumer’s mobile phone number from the mobile device, which is used to place charges on their mobile phone bill without the need to obtain the information manually from the consumer.

Under the terms of the proposed settlement, Jesta is prohibited from making deceptive statements about viruses and anti-virus software, the cost of goods or services, or the conditions of a purchase. Jesta must also receive express verifiable authorization from a consumer before placing any charges on a consumer’s mobile phone bill.

Refunds ordered

Jesta is required to automatically provide full refunds to consumers who were billed between Dec. 8, 2011, and the date of entry of the order for any good or service that involved the company claiming the consumer’s device was infected with malware or that the Jesta would provide purchasers with software to protect their mobile device from malware.

For those consumers Jesta charged between Aug. 1 and Dec. 7, 2011, under short code 75555 (which includes the marketing campaign challenged in the complaint), Jesta is required to notify those consumers of their ability to obtain a refund. Consumers will have to contact Jesta at 866-856-5267 or by e-mail at info@jamster.com and make a refund request. Jesta is obligated to pay a refund to consumers who did not use the service offered by Jesta or where the charges were incurred by a child under the age of 18.

In addition to providing timely refunds directly to consumers, Jesta will pay $1.2 million directly to the Commission.

Consumers with questions about the case or the refund process may contact the FTC for more information at 202-326-3523.

Consumers whose cell phone bills were allegedly crammed by Jesta Digital are in for a refund. In addition to the refunds, Jesta -- which also does business...

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Samsung's watch-like phone to be unveiled next month

Google Glass, who needs it? Samsung will introduce a wristwatch-like device named the Galaxy Gear next month that can make phone calls, surf the Web and handle e-mails, reports today say. 

The Galaxy Gear will be powered by Google's Android operating system and go on sale this year to beat a potentially competing product from Apple Inc, the sources said, according to Bloomberg.

The device will be unveiled Sept. 4, two days before the IFA consumer electronics show begins in Berlin, one of the sources quoted by the news service said. 

Does this mean that Samsung will beat arch-rival Apple to market with a watch-like device? It looks that way. Apple has been said to have a team of about 100 designers working on a device that's expected to be introduced later this year.

Samsung overtook Apple last year to become the world's largest smartphone maker.  

Google Glass, who needs it? Samsung will introduce a wristwatch-like device named the Galaxy Gear next month that can make phone calls, surf the Web a...

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Can you really be addicted to your smartphone?

Addiction is a powerful word that gets thrown around a lot these days. There's drug addiction and alcohol addiction – we're all familiar with that. There's also sex addiction and gambling addiction.

But can we be addicted to our smartphones? Increasingly psychologists are saying yes we can.

Dr. Ira E. Hyman, Jr., a professor of psychology at Western Washington University, says there's a difference between addiction and dependence. Writing in Psychology Today, Hyman admits to being dependent on his cellphone but not to the extent of not being able to control his use. When you arrive at that point, he writes, you're looking at addiction. 

He isn't alone in drawing that conclusion. Experiments have shown that some users, especially young users, will pass up money offered in exchange for waiting to reply to a text message from a friend and instead will reply immediately.

And it's not just texting. Some people will take a call in a crowded restaurant -- even in a movie theater.

TMI

"Cell phones have become a necessary part of our daily lives. Still, it is important to remember when to silence or turn them off -- like during meals and while studying or on the Internet," said Courtney Stewart, research associate at the Indiana Prevention Resource Center, an organization originally established to deal with drug addiction. "Too much information can overwhelm our senses and leave us feeling depleted. So put the phone down and spend some time talking with your friends face to face or better yet, take a walk with your friends if you want to connect and get some mood-boosting exercise."

Stewart says cellphone addiction may be hard to identify because, unlike drug and gambling addition, it can be hard to define. Feelings of withdrawal if you don't have your phone, compulsive checking of the phone, and using it to feel good characterize cell phone addiction, she says. And the consequences can be real, just like with other more-recognized additions.

"Students and others could experience the inability to concentrate on the task at hand, be it school work, your job or an important conversation," Stewart said. "School work may suffer, deadlines are not met, and many instructors and employers now ban the use of cell phones while in class or on the job. Failure to comply with these rules can result in declining grades, removal from the classroom and losing your job."

Life and death

It can also be a matter of life and death. Using your mobile device when you should be placing your undivided attention elsewhere can lead to accidents. In 2011, about 1.3 million automobile accidents involved cell phone use, although a recent study calls into question the link between accidents and talking on a cellphone. 

There are even some humorous accessories to help cellphone users control their habit. One is a pouch for your phone that blocks the signal – for those who can't bring themselves to turn off their devices. Another is a cage in which you can lock up your phone. Stewart, however, suggests just confronting your cellphone demons.

Her advice? Make a habit of turning off your phone. When you go to a movie, go out to dinner with friends or doing work that requires concentration, turn it off.

If you are unsure if you are really addicted to your phone, you can take this test.

Addiction is a powerful word that gets thrown around a lot these days. There's drug addiction and alcohol addiction – we're all familiar with that. T...

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Study contradicts fears of cell phones distracting drivers

We hear all the time about how disastrous distracted driving is, how using a cell phone behind the wheel is like driving drunk. Former Secretary of Transportation Ray LaHood made it a major initiative and spent all kinds of time and money on studies and educational campaigns.

But now a study from Carnegie Mellon University and the London School of Economics and Political Science finds that talking on a phone while driving does not increase the risk of a crash. 

For the study, Carnegie Mellon's Saurabh Bhargava and the London School of Economics and Political Science's Vikram S. Pathania examined calling and crash data from 2002 to 2005, a period when most cell phone carriers offered pricing plans with free calls on weekdays after 9 p.m

No correlation

They compared data from mobile network operators and accident reports and found that there was no direct correlation between the number of phone calls made during a certain time period and the number of crashes during the same time.

"Using a cell phone while driving may be distracting, but it does not lead to higher crash risk in the setting we examined," said Bhargava, who is an assistant professor of social and decision sciences at CMU. "While our findings may strike many as counterintuitive, our results are precise enough to statistically call into question the effects typically found in the academic literature. Our study differs from most prior work in that it leverages a naturally occurring experiment in a real-world context."

In the study, the researchers identified drivers as those whose cell phone calls were routed through multiple cellular towers. They first showed that drivers increased call volume by more than 7 percent at 9 p.m., when the calls became free. They then compared the relative crash rate before and after 9 p.m. using data on approximately 8 million crashes across nine states and all fatal crashes across the nation.

They found that the increased cell phone use by drivers at 9 p.m. had no corresponding effect on crash rates.

Additionally, the researchers analyzed the effects of legislation banning cell phone use, enacted in several states, and similarly found that the legislation had no effect on the crash rate.

Drivers may compensate

"One thought is that drivers may compensate for the distraction of cell phone use by selectively deciding when to make a call or consciously driving more carefully during a call," Bhargava said. "This is one of a few explanations that could explain why laboratory studies have shown different results.

"The implications for policymakers considering bans depend on what is actually driving this lack of an effect.  For example, if drivers do compensate for distraction, then penalizing cell phone use as a secondary rather than a primary offense could make sense," he said. "In the least, this study and others like it, suggest we should revisit the presumption that talking on a cell phone while driving is as dangerous as widely perceived."

Pathania, a fellow in the London School of Economics Managerial Economics and Strategy group, added a cautionary note: 

"Our study focused solely on talking on one's cell phone. We did not, for example, analyze the effects of texting or Internet browsing, which has become much more popular in recent years. It is certainly possible that these activities pose a real hazard."

We hear all the time about how disastrous distracted driving is, how using a cellphone behind the wheel is like driving drunk. Former Secretary of Transpor...

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FCC may finally act to cap rates for prison phone calls

It has taken forever, but the Federal Communications Commission (FCC) is finally taking up the issue of predatory phone call pricing by prisons. After turning a deaf ear to families' pleas for years, the agency is holding a public hearing tomorrow (Friday) to consider rate caps and other rule changes.

The knee-jerk reaction to charging humane telephone rates for calls from prison is that inmates should suffer for their misdeeds. It is, of course, not the inmates who pay for the calls but their families, most of whom are already suffering economically because of their relatives' imprisonment, something the tone-deaf FCC is finally acknowledging.

"The loved ones at home, they have very little disposable income," said Rep. Bobby Rush (D-Ill.), speaking at an FCC workshop last month. "They sacrifice food on the table, other expenses, just to stay in touch with their loved ones locked away."

For once, this argument rings a bell at the FCC.

"For too long, the high cost of long-distance calls from prisoners to their loved ones … has chronically impacted parents and children," FCC acting Chairwoman Mignon Clyburn said in a statement. "Multiple studies have shown that meaningful contact beyond prison walls can make a real difference in maintaining community ties, promoting rehabilitation and reducing recidivism."

The issue got no traction with the FCC until Clyburn, who has been on the commission since 2009, assumed the acting chairmanship after Julius Genachowski, who was more interested in Wi-Fi speeds than prison families, resigned. President Obama has nominated cable and wireless industry lobbyist Tom Wheeler to head the commission but he has not yet been confirmed by the Senate, leaving Clyburn in charge for the moment.

“Tom knows this stuff inside and out,” Obama, who while campaigning pledged he would not hire lobbyists, said in announcing his nomination of Wheeler May 1. Big wireless firms like Verizon and AT&T cheered. They “should benefit from a focus on their economic health” by a Wheeler-run FCC, Paul Gallant, Washington-based managing director at Guggenheim Securities, told Bloomberg News in May. 

So for the brief interim period when former campaign strategists (Genachowski) and industry lobbyists (Wheeler) are not in control of the commission, it may actually do something for the little people everyone talks so much about.   Before being named to the FCC in 2009, Clyburn was an elected member of the South Carolina Public Service Commission. She is the daughter of Rep. Jim Clyburn (D-S.C.).

Big bucks

This may not sound like much of an issue but with about 1.5 million people in federal and states prisons, we're talking about a lot of phone calls, expensive ones at that. Some state prisons charge a $4 "connection fee" for each call, plus 89 cents per minute or more.

"In some instances, the price of a single phone call from prison eclipses the cost of an average basic monthly telephone bill," Clyburn said.

Clyburn has proposed rate caps, limits on per-call fees and has suggested it would not be totally unAmerican to allow those imprisoned by their government to make at least a few free calls. 

Phone companies, of course, oppose the changes, saying they would cut into the profit they make on the estimated $1.2 billion of annual charges to prison families.

Two little-known companies get most of the take from prison calls. Global Tel-Link of Atlanta and Securus Technologies of Dallas insist that it costs more to handle prison calls because of the security measures that prisons require. Such as? Oh, call screening, restricting certain numbers and blocking three-way calls -- all activities that are performed by modern digital switching equipment at little or no incremental cost per call.

It's not just these two companies that have their hands in the pockets of prisoners' families, however. The states, counties and private firms that operate prisons award exclusive telephone contracts and give themselves a big share of the profits in the form of commissions.

While most states have gladly scraped off as much of the predatory profits as they can get their hands on, eight states have adopted reforms and more, seeing no sign until recently that the FCC would ever act, are considering it.  

New Mexico recently capped phone rates at 15 cents a minute, plus a $1 connection fee. Missouri charges $1.75 for a 15-minute call.

Snail's pace

The issue has been on hold at the FCC since at least 2000, when 20 prison families filed a class action lawsuit seeking a ruling that the extortionist rates were illegal. The suit was remanded to the FCC, which in 2003 issued a notice or proposed rulemaking. Years passed and nothing happened.

Prison rights groups have been pressing for change all this time. Cheryl Leanza, speaking on behalf of the United Church of Christ's media justice and communications rights ministry, urged the FCC to, for once, move swiftly.

"We cannot delay action on this docket. It's been 10 years," she said, according to a Legal Times blog. "I don't think there's any question the FCC has authority over this issue."

Mignon ClyburnIt has taken forever, but the Federal Communications Commission (FCC) is finally taking up the issue of predatory phone call pricing by p...

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A little digital assistance for foodies

It's hard not to be a foodie nowadays. With new restaurants popping up left and right and 24-hour food channels, many of us have tasty dishes on our minds all the time.

When it comes to figuring out what to eat, what to cook and which restaurants to visit, there are countless numbers of apps and websites to help you. So we pulled some of the best

Evernote Food

On Evernote Food, you can search for recipes and lock them into your device, look for restaurants in or out of your area, take photos of the things you eat and cook and share those photos with your Facebook and Twitter followers.

And the restaurant search feature lets you search by cuisine.

For those folks who like to take photos of their meals when they go out to eat, there is a My Meals feature that allows you to add and save images and keep a record off all the restaurants you've been to.

You can write little notes on the photos, too if you're interested in documenting each meal experience and detailing things like how good the dish was, how the restaurant looked and so on.

The My Cookbook feature lets you organize recipes based on ingredients or a particular diet, which can be really helpful. The only downside to the app -- based on a few reviews -- is that it's a little bit hard to pull up recipes after you've saved them.

"Love the looks of this app, especially for the price," one user wrote. But "why wade through every recipe looking for something when I know I want a salad or a soup."

Users hope the makers of the Evernote Food app will eventually make searching for recipes a lot easier. The price to download it is $4.99

Big Oven

The app BigOven is supposed to have 250,000 recipes in total. You can search for them either by ingredient or by course, or you can scroll through different meal ideas until you find what you're looking for. Plus, there's a cool leftover feature.

All you have to do is type in three ingredients and the app will suggest a meal idea based on them. This obviously can be very useful when you have no idea what to prepare. 

The app will give you recipe reviews, too and you can share what you cooked on your social media page. Big Oven also lets you see what your friends and followers are cooking as well.

Fooducate

Fooducate which helps consumers pick the healthiest foods. The creators claim it has the largest database of nutrition information and all you have to do is pick up an item in the store and scan it. 

From there, the app tells you how much sugar is in the product, how much trans fat it has, how much high fructose corn syrup is inside and what kind of additives and preservatives the product has.

In addition, it tells you if the product has any GMOs, artificial sweeteners or any other ingredients that you may be trying to avoid.

One user said the app taught him a lot about nutrition. "I really like this app," the user wrote. "It is easy to track what you eat and it is very educational."

Vegetarian alternatives

What if you're a vegetarian? Are there some good apps out there for you?

The answer is yes -- a bunch. Among them is VeganXpress, which helps you find out which items are vegan in non-vegan restaurants.

For example, you're eating with your friends at Carrabba's, let's say, and you have no idea what the vegan dishes are.

All you have to do is pull up the restaurant on your device, and the app will tell you what you can order and what you'll have to stay away from, if you're trying to follow a vegan diet.

VeganXpress is good for travelers too, especially those who may not know where to get a good vegetarian meal when they're out of town. 

The makers say the app has about 130 popular restaurants listed, so there's a good chance you'll be able to find what you're looking for when you're dining out.

So there you go. A few apps to assist the foodie, because with a rapidly changing food scene, consumers can use all the help they can get when they want to figure out what to eat.

It's hard not to be a foodie nowadays.With new restaurants popping up left and right and 24-hour food channels, many of us have tasty dishes on our minds a...

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Consumers should have a little privacy, New Jersey court holds

The New Jersey Supreme Court has become the first in the country to recognize a constitutional right to privacy in cell phone location records.

The court held earlier this month that that individuals have a reasonable expectation of privacy in their cell phone location data under the New Jersey state constitution.

In State v. Earls, the New Jersey high court found that "cell-phone location information, which users must provide to receive service, can reveal a great deal of personal information about an individual." 

Consequently, law enforcement officers in New Jersey will be required to obtain a search warrant to track an individual's location.

In order to communicate with the telephone network, a cell phone must be in constant contact with nearby cell towers. These connections create a “paper trail” of an individual's phone records. By examining the location of towers to which a phone is connected over a period of time, law enforcement can track a person's movements in great detail. 

In urban areas where cell phone towers are densely packed, a person's  location can be pinpointed very precisely; tracking the phone is equivalent to tracking the person.

The decision in State v. Earls is the first state supreme-court case upholding location privacy since the U.S. Supreme Court’s 2012 decision in US v. Jones, a GPS tracking case. The state of Montana has passed a similar statute requiring warrants to track cell phone location.

The New Jersey Supreme Court has become the first in the country to recognize a constitutional right to privacy in cell phone location records.The court ...

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Feds asked to investigate privacy issues in rapper app

You wouldn't think that a Jay-Z app would collect all kinds of personal data about you, but a consumer privacy group says that "Magna Carta Holy Grail" app does just that.

The Electronic Privacy Information Center (EPIC) has filed a complaint with the Federal Trade Commission against Samsung, the publisher of the app, which it says "collected massive amounts of personal information from users and required substantial user permissions."

EPIC says Samsung failed to disclose details of the privacy practices of the app, collected user data far beyond what was necessary and failed to give consumers any reasonable choice in the matter.

Specifically, said EPIC, the Magna Carta app collects user personal information that includes:

  • Approximate user location using cell site locations and Wi-Fi networks;
  • Precise user location using the Global Positioning System (GPS), cell site locations, and Wi-Fi networks;
  • Mobile device identifiers, including the International Mobile Subscriber Identity and International Mobile Station Equipment Identity numbers, both of which are unique identifiers;
  • Time periods during which the phone is active;
  • Telephone numbers dialed; and
  • The identity of other applications installed on the device.

According to EPIC's complaint, the app can run in the background whenusers switch to other apps on their mobile devices; can continue toconnect to the Internet while running; signs in as soon as users'phones are switched on, and has access to the phones' vibration and"sleep" functions.

"The number of permissions requested" by the app, EPIC says, "verges on parody."

EPIC's complaint further alleges that the "Magna Carta" app includes hidden spam techniques that force users to promote the album. The app requires users to log in to their Facebook or Twitter accounts in order to access any of the content:

"In the run-up to the album's release," EPIC contends, "the Magna Carta App allowed users to view song lyrics, but only if the user posted a tweet or Facebook status update promoting the fact that they had unlocked each lyric."

EPIC has asked the Commission to investigate Samsung and enjoin the company's unfair and "deceptive data collection practices for any future apps that it may offer." 

You wouldn't think that a Jay-Z app would collect all kinds of personal data about you, but a consumer privacy group says that "Magna Carta Holy Grail" app...

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Lawsuit: Tracfone's "unlimited" data plans are anything but

In a class action lawsuit, consumers claim that Tracfone Wireless falsely advertises "unlimited" data plans while clandestinely maintaining monthly data usage limits that are not disclosed to customers.

Tracfone is the fifth-largest U.S. wireless carrier, with about 23 million subscribers. It also uses the StraightTalk Wireless brand name and sells its prepaid plans through Walmart, which is named in the suit, Courthouse News Service reported.

The suit charges that the StraightTalk "Unlimited" plan, which costs about $45 per month, is anything but unlimited. 

"A former Straight Talk employee stated that the monthly data cap in 2012 was between 2GB - 3GB, having been reduced from a prior 5GB limit at the behest of defendants' network carrier partners," the suit alleges. "More recently, the lower bounds of the limit may have been reduced to 1.5GB, based on customer reports. Defendants actively conceal these limits from 'unlimited' data customers."

"Defendants throttle data speeds or terminate their 'unlimited' customers' data, typically without any notice or warning, when those customers exceed defendants' undisclosed data usage limits. At the direction of defendants' wireless network partners, defendants also regularly and arbitrarily throttle or terminate 'unlimited' customers' data even when a customers' data usage is below defendants' undisclosed limits," the plaintiffs claim.

This sounds familiar to John of Troy, Mich. 

"StraightTalk sold by Walmart is sold as having unlimited wireless and data service. Nothing could be farther from the truth when it comes to the data portion," he said in a ConsumerAffairs posting. "I use my phone to receive emails - work and personal. I check Facebook and Twitter. This company will make you feel like you're a criminal.

"Before my first month was over, they told me that I was using the internet too much, that I should look at section 107 in my contract and that they would suspend my service and/or limit the speed in which the service runs. In the second month, they did suspend (cut off my service). I can make calls and text, but anything related to the internet is cut off," John said. 

Some consumers have also complained that the "unlimited" service they thought they were buying turned out to be geographically limited.

"Unlimited data? Not so unlimited if you leave your zip code," said Andrea of Appleton, Wis., in a complaint to ConsumerAffairs. "The city in which we live in carries 5 or 6 different zip codes. We would not even have access to the unlimited internet in our own full city! Unbelievable!"

Blame the customer

Consumers rate TracFone

Lead plaintiff David Hansel says Tracfone and Walmart routinely blame customers for "misusing" their accounts or violating its terms and conditions.

Hansel claims the data limits are the result of Tracfone's deals with other carriers, whose bandwidth it resells. 

"Defendants terminated customers' data at the behest of their wireless network partners when a particular cell tower is at or near data capacity, regardless of whether that customer's data usage has exceeded defendants' secret data usage limits," the complaint states.

Hansel's lead counsel is Michael Sobol of the law firm Lieff Cabraser Heimann & Bernstein. 

In a class action lawsuit, consumers claim that Tracfone Wireless falsely advertises "unlimited" data plans while clandestinely maintaining monthly data us...

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AT&T finds a way to cut subsidies on wireless devices

Don't like those lengthy cell phone contracts? AT&T is giving you a chance to cut the cord, or at least snip it a little bit -- but it comes at a price.

AT&T calls its new program "AT&T Next." Simply put, it lets you buy any phone or tablet you want at full price without signing up for a two- or three-year network service contract. Instead, you have to sign up for an AT&T Next service contract, which as we interpret AT&Tspeak does not have a fixed term.

What's so great about that? Well, not too much except for the no-long-term contract part. The rub is that you'll be paying full price for the phone you select instead of having AT&T subsidize the device in exchange for a multi-year contract.

Of course, while there's no contract, you'll be signing an interest-free financing plan (i.e., a contract) that lets you pay for the phone in 20 monthly payments. After 12 payments, you can trade the device in on a new one; after 20 payments, the phone or tablet is yours and you can keep it, sell it or give it away. 

Of course, if you lose the phone or it gets damaged or stolen, you'll still have to make the payments, so if you're one of those people who tends to drop the phone into the toilet or back over it with your Hummer, it might be a good idea to look into insurance. 

To hear AT&T tell it, this is the greatest thing since unsliced bread. 

“With AT&T Next, customers can get the newest smartphone or tablet every year with no down payment. That’s hard to beat, and it’s an incredible value for customers who want the latest and greatest every year,” said Ralph de la Vega, president and chief executive officer of AT&T Mobility.

Really?

Consumers rate AT&T Wireless

Why is this such a great deal? Well, it depends on a lot of things -- like what AT&T will be charging you for network service and how much you wind up spending for the phone or tablet. See AT&T's website for more information on network plan pricing (we couldn't find it but maybe you can).

Phones and tablets aren't cheap, you know. Consumers who've gotten used to getting a new phone every few years for $100 or so will be shocked to learn that new iPhones, Droids and so forth can easily top the $500 mark -- a cool $25 or so per month just to pay for the phone plus the monthly network charge.

Oh, and about that "no-contract" network agreement, you can cancel it at any time but if you do -- guess what -- the full amount of your installment contract on the device becomes immediately payable. 

So, yes, you can quit anytime you want. But it will cost you.

Freedom, as they say, isn't free.

Don't like those lengthy cell phone contracts? AT&T is giving you a chance to cut the cord, or at least snip it a little bit -- but it comes at a price...

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Cellphone spammer faces multi-million-dollar class action

A federal judge is allowing a multi-million-dollar class action against an alleged cellphone spammer to go forward. Wise Media is accused of charging millions of consumers for services they didn't want or order.

The plaintiffs filed their case in October 2012, saying they had received unsolicited text messages from Wise offering flirting tips, horoscopes, celebrity gossip and weight loss advice, Courthouse News Service reported. 

The Federal Trade Commission is also on Wise's case. It filed a complaint in April, asking the court to freeze the defendants’ assets immediately and order them to stop their “deceptive and unfair practices.”

It's the first time the FTC has gone after an alleged cellphone crammer.

Flirting tips 

The class action charges that a typical initial text sent to cellphone users by Wise Media stated: "Lovegenietips Flirting Tips; 3msg/week for $9.99/m T&Cs: lovegenietips.com Msg&data rates may apply. Reply HELP for help, STOP to cancel." 

Then through a process called "cramming," Wise allegedly used middlemen to place charges on millions of consumers' cellphone bills, even when consumers rejected the offers or simply didn't respond. 

The suit also names Mobile Messenger Americas, mBlox Incorporated and Motricity, aggregators that it says acted as Wise's middlemen. Mobile Messenger had moved for dismissal of the claims against it but  U.S. District Judge William Alsup, of the Northern California district, refused and allowed the case to go forward.

Alsup left the class's actions for conversion, negligence -- and the common law counts of unjust enrichment and money had and received -- intact. He found that at this stage of the proceedings, there was sufficient cause to believe that money was taken from cellphone users and restitution must be paid.

Lead plaintiffs in the case are Edward Fields, Cathie O'Hanks, Erik Kristianson, Richard Parmentier, Kimberly Brewster and Kristian Kunder.

Not a new idea

The concept of ‘cramming’ charges on to phone bills is a not a new one,” said FTC Chairwoman Edith Ramirez. “As more and more consumers move to mobile phones, scammers have adapted to this new technology, and the commission will continue its efforts to protect consumers from their unlawful practices.”

In many instances, the FTC complaint maintains, Wise Media sent text messages to consumers that suggested they were subscribed to the service, which many consumers dismissed as spam and ignored. Even if consumers responded via text indicating that they did not want the services, they were charged on their mobile phone bills on a continuing basis.

Caught unaware

The commission says Wise Media and its operators took advantage of the fact that consumers may not expect their mobile phone bills to contain charges from third parties and that these charges appear on bills in an abbreviated manner that does not always clearly designate the company as the source of the charge.

As a result, it says, many consumers didn’t notice or understand the charges and paid the bills. To the extent that consumers did notice the charges, the process of obtaining refunds was difficult and often unsuccessful according to the complaint.

Wise Media is accused of going to great lengths to hide its contact information from consumers. And it says, when consumers were finally able to find a phone number for Wise Media, the company's call center employees frequently promised refunds that were never provided.

A federal judge left the bulk of a class action against a cellphone spammer intact, leaving it to face the music for charging millions of customers for unw...

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FAA may change rules covering electronic devices

The Federal Aviation Administration (FAA) is said to be about to relax the ban on some types of personal electronic devices aboard commercial airliners at low altitudes, maybe even during landing and take-off.

The Wall Street Journal says the details are still being debated within the FAA but says there's an emerging consensus that the rules now in effect are out of touch with the times.

The rules prohibiting the use of cell phones and other devices that emit radio signals go back to the 1960s, when practically no one had such a thing. The few portable radio transmitters that did exist tended to use much higher power, making them more likely to interfere with aircraft navigation and communications systems.

Airlines are currently allowed to set their own rules but most have chosen to simply follow the FAA's guidance and have prohibited the use of all devices at altitudes of less than 10,000 feet.

An FAA advisory group has warned the agency that unless it updates its rules, airlines may adopt a "nonstandard system" of patchwork rules that "could further confuse the public."

If the FAA sticks with the current draft version of the new rules, devices like Kindles and other e-readers could be used during all phases of flight while others, like tablets and laptops, might still be restricted to 10,000 feet.

The current draft doesn't propose any changes to cellphone usage, which isn't allowed at anytime on U.S. flights, although some international carriers allow it.

The advisory panel said it will provide a separate draft on that topic that the FAA can address if it feels it can withstand the turbulence that could result. 

The Federal Aviation Administration (FAA) is said to be about to relax the ban on some types of personal electronic devices aboard commercial airliners at ...

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New York installing free mobile device charging stations

In less than five years time, smart phones have become a critical part of modern life. That point was driven home last fall when Hurricane Sandy slammed into the northeast corridor, knocking out power to wide areas of the New York City metro.

The result was communication chaos. Millions of people now have no wired telephone account, relying solely on their cell phones for contact with family, friends and work.

The cell phone providers quickly restored power to their networks through emergency generators, but it turned out to be of little use to customers after a day or two. With no electricity, smart phone batteries quickly ran down. Sandy, it seems, exposed the Achilles heel of wireless communication in a blackout.

Now, less than a year after the storm, New York City and AT&T are embarking on an ambitious program to provide free cell phone charging stations around the city. They will be there in an emergency, or when you are on the go and discover your phone's battery needs a charge.

Street Charge

AT&T calls the pilot project “Street Charge” and is basing it on the temporary charging stations it set up in Sandy's aftermath. But instead of the generators it brought in to provide power, these new permanent charging stations will be powered by solar energy.

Before the end of the summer AT&T expects to deploy some 25 charging stations across the city's five boroughs. There are two solar mobile charging units now live at Fort Greene Park. Charging stations will next come online at Brooklyn Bridge Park's Pier I, Governor's Island, and Pier 1 at Riverside Park and Union Square Park.

"Thanks to AT&T, more New Yorkers will have improved connectivity and access to the wireless technology that has become such an important part of our daily lives," said Mayor Michael R. Bloomberg. "After Hurricane Sandy, I asked our private sector partners to step up and help improve the resiliency of New York City. AT&T is doing just that, and we're grateful for their efforts."

Where to find charging stations

Once the project is complete, charging stations for cell phones and tablets will be available in these locations:

Manhattan:

  • Riverside Park, Pier I
  • Union Square Park, North Plaza
  • Rumsey Playfield, Central Park Summerstage
  • Hudson River Park Pier 59
  • Randall's Island

Brooklyn:

  • Brooklyn Bridge Park, Pier I
  • Fort Greene Park
  • Coney Island
  • Metrotech Plaza
  • The Dumbo Arts Festival
  • The Brooklyn Book Festival

Queens:

  • Rockaway Beach
  • Clearview Golf Course
  • Socrates Sculpture Park

Bronx:

  • Orchard Beach
  • Staten Island:
  • Governor's Island
  • La Tourette Golf Course
  • Staten Island Zoo

Keeping a smart phone charged is a bigger issue than with the previous generation of cell phones. Accessing data and running apps provides a much faster battery drain than simple voice communication.

What to do

A number of manufacturers are at work to find ways to extend battery life, or produce smart phone batteries that will hold a charge longer. In the meantime, there are a few things you can do to go longer between charges.

The first is obvious – turn off the phone when you are asleep or in an area where there is weak or no cell signal. If the phone is constantly searching for a signal, it can quickly drain the battery.

When you are in a meeting and don't want to be disturbed, turn the phone off instead of switching to “vibrate.” The vibrate mode uses extra power.

Turn down the brightness. Yes, you need to be able to see the screen when you are outside in the sunlight but the backlight feature on smart phones is an energy hog.

Don't let the battery drain completely. The lithium-based batteries in mobile devices are designed to operate best when they don't run all the way down. Charge it up whenever you have the chance.

In less than five years time, smart phones have become a critical part of modern life. That point was driven home last fall when Hurricane Sandy slammed in...

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Can the Apple brand regain some of its coolness?

So, as predicted, Apple CEO Tim Cook unveiled Apple iRadio and iOS 7 Monday and, believe it or not, the earth just kept on spinning. Crowds did not run into the street in shock and awe.

Of course, iRadio is not exactly an earth-stopping idea. I mean, we already have Pandora, Spotify, MOG, Google Play whatever and so forth and so on. Come on guys, what took you so long?

And iOS is a reworking of the Apple's mobile software that looks an awful lot like that weird Microsoft Phone thing -- you know, with the buttons and all. 

It was  just a couple of years ago that Apple was seen to be on a higher plane than the rest of us mortals and its iPhone satisfied both hard-core techies and people who just wanted a cool phone.

But now, iPhones are slowly becoming uncool, and teens and preteens are flocking to Google's Android system on Samsung, HTC and Motorola smartphones. 

iPhones taking a hit in the cool department may have something to do with the short lifespan of electronic gadgets in general, especially among younger folks.

Because in most cases, once kids start using a mobile device for the first time, they want something different from what their parents are using.

Kind of old ...

Plus, there have been a few commercials by Samsung that have made fun of Apple and made the iPhone seem stodgy and old-fashioned -- kind of like, well, Microsoft. And once you besmirch a company's cool futuristic image, younger consumers will usually head someplace else.

For example, look at iTunes. The music service used to be the go-to destination for downloading, but since streaming has become today's new craze, folks are heading to sites like Pandora and Spotify instead.

Additionally, there seems to be a new streaming site popping up everyday, which is probably why Apple was eager to secure its deal with Sony/ATV and get iRadio out to consumers as soon as possible.

But will iRadio really give Apple the shot of coolness it needs? Will iOS 7 satisfy the many critics who have complained about the company's previous operating systems?

If not, it'll be back to the drawing board for Cook and his team, in order to come up with something that sets Apple apart from its competitors.

Gone for good

Bob O'Donnell, vice president of the market research firm IDC, said it's almost impossible for Apple to reclaim the stronghold it once had. 

"I'm not sure if [Apple] can be as dominant as they once were," he said in an interview with CNN. "I don't think anybody can be quite as dominate as Apple once was. I think we see the pie of influence spreading."

"So the things that they innovated on are now standard and commonplace. The trick is can they come up with new things or continue to evolve their existing products in ways that continue to completely set them apart," O'Donnell asked.  

Whatever Apple can do to improve its image better be done fast, because Samsung is fast on its tail with its increasingly popular smartphones and  its new streaming service. According to several reports, Samsung has teamed with rapper and business mogul Jay-Z for its streaming site, which has many in the tech world buzzing.

The company hasn't made an official announcement of the streaming service yet, but experts say partnering with Jay-Z can only be a good thing. 

"Jay-Z has demonstrated a particularly good ability to identify what audiences want or to create a demand for something that they didn't even know they wanted," said attorney Lori Landew in an interview with Forbes"And it seems likely that he will be able to use these instincts in designing a streaming service that will appeal to a variety of audiences."

Reports indicate the Brooklyn rapper will be paid a cool $20 million for partnering with Samsung.

David Barnard, who founded App Cubby, said iPhones are still the most popular, but the company has taken a big hit in the area of hipness. "Painting the iPhone as a passé thing is such a perfect marketing message to counteract its coolness," he said.

So Apple has its work cut out for it, as it tries to wow consumers with iRadio and iOS 7. Whether folks will be truly wowed remains to be seen.

Some might say 2013 will be a crucial year for the company, because if it slips out of the coolness zone any farther, it may not recover. 

Isn't that what happened to the BlackBerry?

It seems that Apple's music streaming service iRadio will be launched pretty soon, as the company just secured a deal with Sony/ATV.Finalizing the Sony a...

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Recording concerts with a smartphone -- annoying and probably illegal

Bonnaroo, Lollapalooza and Bumbershoot are just some of the big music festivals taking place this summer, so folks can expect to see bands like Vampire Weekend, Fun and rapper Kendrick Lamar.

Even Paul McCartney is making an appearance at one of the shows.

Undoubtedly, a lot of concertgoers will be watching shows through their smartphones, instead of gazing at the stage. This of course is to capture all of the video footage they can.

We've all seen this before: A sea of arms lifted into the air, hoping the latest gadget will document every exciting moment. It seems that some people would rather enjoy the concert at a later time rather than while it's happening.

But is this a bad thing? Some might say it's okay to watch a show through a smartphone.

It allows you to relive the experience again and again; you can share the concert with your friends through social media if you want. And by zooming in, you can get a close look at the stage even if you don't have a good seat.

So the question remains: Are mobile devices and concerts a bad mix? Do they bother other concertgoers who might want to watch the show the traditional way?

Thumbs down

New York punk band the Yeah Yeah Yeahs answered this question in a sign they posted at one of their recent concerts:

"Please do not watch the show through a screen on your smart device/camera. Put that ... away as a courtesy to the person behind you and to [band members] Nick, Karen and Brian. Much love and many thanks. Yeah Yeah Yeahs."

The lead singer of the band, Karen O, did give folks a brief time during the show to use their devices, but it's clear the band wanted people to experience their performance the traditional way.

Roger Waters -- former bass player for Pink Floyd -- said using a mobile device to watch a concert is just plain disrespectful.

"I would never turn on a cell phone at any musical event," said Waters in an interview with BBC News. "It would seem to me to show a lack of respect and care for fellow concertgoers or, for that matter, the artist.

"Apart from anything else, how could I possible truly experience the thing I'd paid to see and hear, if I was fiddling with an iPhone, filming or twittering or chatting or whatever?"

Others agree

And it's not just rock musicians who are unhappy about smartphones at concerts. Musicians from other genres are taking a stance too.

Krystian Zimerman, a world renowned pianist from Poland, walked out of one of his shows after catching a person using a smartphone. When Zimerman spotted someone from one of the balcony seats using the device he said: "Would you please stop that?" and walked off the stage shortly after.

Some concert organizers like Anke Demirsoy -- the spokesman for the Ruhr Piano Festival -- are trying to think of new ways to stop people from using mobile devices at concerts. 

"It's hard to catch culprits, because smart phones are so small they can quickly disappear back into bags and it's hard to pick people out in the dark," said Demirsoy in a published interview. "Clearly some people think buying a concert ticket entitles them to the film rights as well."

An app for that

But despite how some may feel, a few companies are making apps so people can record concerts easier.

Take SuperGlued, an app that allows you to post photos and share them instantly with other concert goers. Once other people upload their photos to the app, you'll be able to see various angles of the stage.

In addition, the app has a show calendar so you'll know who's coming to town. Plus, you can buy tickets and join contests to win stuff too.

45 Sound is another concert app. The creators ask artists to upload a live recording of their concert, so their music will sound professional. And concert goers are asked to upload all of their video footage as well.

Once the concert ends, the app will have good-sounding audio of the concert and footage from every angle, so users can get a fuller experience.

Inevitable and illegal?

So as the summer concert season rolls around, you'll most likely see a bunch of smartphones in the air, plus a few people who would rather watch their favorite artist the traditional way.

If you do decide to record a show, try to do it without inconveniencing other consumers, who have paid good money to be there. Remember, it's easy to block someone's view, crowd their space or just be plain annoying when you're trying to capture that perfect shot.

It's also worth noting that you're on shaky legal ground when you record a live music performance. The material is copyrighted and making an authorized recording can be construed as a federal crime. 

You -- or your very expensive lawyer -- could argue that as long as the recording is only for your own personal use it's OK but do you really want to go through that?

Bonnaroo, Lollapalooza and Bumbershoot are just some of the big music festivals that are taking place this summer.So folks can expect to see bands like V...

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Websites to help you stay creatively inspired

Many people have a creative side, but it's not always easy to stay inspired and bring that creativity out.

Whether someone releases his creations to the art world, music world, literary world or wherever, keeping those creative juices flowing can be quite the challenge.

Fortunately, there are some good websites you can visit to get a little inspiration. Like Storybird.com.

The story muse

The creators of Storybird gather artwork from artists, animators and illustrators from different parts of the globe. From there, writers can create stories for the illustrations, so the site is great for writers who need something to jolt their ideas.

But Storybird isn't just for professional or aspiring writers. It's for adults and kids who just like to be creative or write little stories from time to time.

For example, the creators of the site point to one of its users named Ava. Ava is 13 years old and writes cute little stories about her friends and classmates at school and has a good number of followers.

So Storybird allows kids to practice sentence structure, and get more comfortable expressing ideas through written word.

Of course these things will be helpful if the child wants to be a professional writer in the future. And it will help her work on her writing for future school assignments and papers.

Works both ways

But the site can be used so people can discover and read cool stories too.

Storybird's creators say the site has about 5 million stories of all kinds, so it can be used just for reading or to get inspiration when you want to write a story of your own.

If you're a school teacher, you can use the site to teach your kids about creative writing and art. And it allows other students to provide real-time feedback, so classmates can leave comments and have discussions about a particular story or illustration.

Aiding artists

And since pictures and artwork are a huge part of the site, Storybird is a great destination for artists too.

It allows artists to not only get their name and artwork out to a large number of followers, but they can make money if someone buys a story that uses their artwork as well. Artists get paid 30 to 50% of royalties if their art is ever purchased, say the site's creators.

The creators of Storybird say art agents visit the site to sign new artists, so it's possible you could be discovered if the stars align properly, although that might be a long shot.

Starting the creative juices

Another site to spark a little creativity is BrainPickings.org. It provides a lot of different links to help birth new ideas or cultivate the ideas you already have.

Brain Pickings uses the concept, that books, music, quotes, articles and other people's ideas all need to be regularly accessed to stay creatively inspired.

  • First there's the "bookshelf" link that brings you to a page of books that fall under the categories creativity, design, science, history, psychology and art.
  • The newsletter section of the site picks out interesting stories and articles from around the globe to keep you in-the-know about a variety of subjects.
  • Then there's the "Literary Jukebox" link that pulls a daily quote from a book, then matches that quote with a song of the same subject. Both the quote and the song are supposed to give you a little inspiration to create your own helpful quote or song one day. Or create anything else for that matter.
  • Using the "sound" link on the site will connect you directly to a Sound Cloud page that has a bunch of lectures, conferences and other things you can listen to for inspiration.
  • The Sound Cloud page has everything from marriage experts talking about relationships, to marketing experts who tell you the best ways to get your own creation out to the masses.

Brain Pickings has mobile apps for Apple devices and Androids, so you can get a little inspiration while you're on the go.

Luckily, there are many ways to look for inspiration if you can't muster it up yourself and these two sites are pretty good since the creators seem to understand that staying creative is a daily process that takes some proactivity.

Of course you'll have to do the normal things to stay inspired: Leave the house, meet new people, go new places and so on, but it's good to know you can just turn on your computer or mobile device and get some help.

Let's face it. There are many people who have a creative side to them, but it's not alwasy easy to get inspired and bring that creativity out.Whether som...

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Google brings it home, will build a smartphone in the U.S.

Americans are pretty accustomed to driving around in German or Japanese cars while yakking on smartphones made in Asia. But Google's Motorola Mobility says it will start buiding a new phone, the Moto X, in Fort Worth, Texas, a place you might associate more with steerhorns than with high-tech manufacturing.

"There are more than 130 million smartphones in use in the U.S., but not one of them is made here. That changes with Moto X," Motorola spokesperson Danielle McNally said, according to TechNews/World.

Motorola Mobility CEO Dennis Woodside, speaking at the All Things D conference said Motorola will completely revamp its product line-up by October. 

It's expected the Moto X will compete primarily with Apple's iPhone and the more advanced Samsung models. It's expected to feature what's called "context aware" technology that "knows" where it is -- whether traveling in a car or train or being taken out of the user's pocket at home or at work. 

But can Motorola really build an all-American phone cheaply enough to compete effectively with Samsung and Apple? The answer lies with how consumers respond to the idea of a Made-In-USA phone.

Consumers in the Midwest and Northeast traditionally respond better to products they perceive as being made in the U.S. Motorola says it will also be applying some pretty advanced technology to the manufacturing process, which may help lower the assembly costs. 

Besides, Woodside said, Google and afford to take a smaller profit margin than the other companies. 

And just to be perfectly clear, the Moto X won't be entirely manufactured on these shores. The processors will come from Taiwan and its screens from Korea but the company says 70 percent of the assembly will happen in Fort Worth. Motorola Mobility has said it will hire 2,000 workers at the Moto X plant.

Americans are pretty accustomed to driving around in German or Japanese cars while yakking on smartphones made in Asia. But Google's Motorola Mobility says...

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AT&T gives itself a $350 million raise

AT&T is giving itself a $350 million raise, adding a monthly “administrative fee” of 61 cents to the bills of all its contract wireless lines, retroactive to May 1.

Why? Well, because it can. After all, its customers are under contract so it’s not as though they can get mad and go somewhere else. And besides that, it’s an easier way to boost revenue than going out and finding new customers.

After all, AT&T has about 70 million wireless customers and most of them can afford an extra 61 cents per line per month, so why shouldn’t that money go into AT&T’s pocket. What are the consumers going to do with it anyway?

Next year will be even better for the telecom giant, which has never been shy about adding fees, charges and surcharges to everything it reaches out and touches. When applied to its 70 million customers for all of 2014, the new fee will add up to about $518 million next year.

It’s not even $1 billion but when you’re AT&T, every little bit helps.

The others do it ...

Consumers rate AT&T Wireless

In its defense, AT&T says other carriers have fees too. Verizon Wireless, for example, charges an administrative fee of 90 cents per line and a “regulatory recovery charge” of 16 cents. AT&T has one of those too, of course. It charges about 50 cents per line. Maybe it has more regulations to comply with than Verizon?

AT&T is very particular about its image, of course, so it doesn’t take kindly to people making snarky comments about its fees, fees and more fees. An AT&T spokesperson told the Wall Street Journal that the administrative fee is necessary to cover “certain expenses, such as interconnection and cell-site rents and maintenance.”

Oh well, that explains it then.



AT&T is giving itself a $350 million raise, adding a monthly “administrative fee” of 61 cents to the bills of all its contract wireless lines, retroactive ...

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Some new ways to learn a language

Let's face it, the world is getting smaller.

Through modern technology, the Internet and 24-hour news outlets, a lot of foreign places don't seem that foreign these days.

And as time goes on, more and more cultures will continue to live and work closely together, which makes more people want to learn a new language. 

Of course you can take a traditional language course or get an individual tutor, but you may not have the time.

So what else can you do?

You can teach yourself a new language on your home computer or on your smartphone, especially if you don't have a lot of free time.

Lingualia

A good site to use is Lingualia, which combines social networking with learning a new language.

Lingualia teaches users a host of new languages by using audio techniques, visual lessons, virtual flashcards, work exercises and other teaching methods.

The software can be accessed either on your home computer or mobile device and your work will be shared among all your devices, so you can always pick up where you left off.

In addition, Lingualia uses a virtual tutor named Lingu, which gives you step by step instruction and feedback on your progress.

The creators of the software say Lingu is based on artificial intelligence so it can tailor its teaching methods to accommodate each kind of user. So whether you have very little time each week or several hours every day to learn a new language, Lingu is able to adjust its teaching style to each user and that user's lifestyle.

Probably the coolest thing about Lingualia is the ability to connect with other users around the world who speak the language you're trying to learn. 

You'll be able to get tips and practice your new language with them and communicate with other users who are learning a new dialect as well.

Lingualia can be used by people of all ages and the basic service is free. But you'll have to pay if you're interested in using the site's premium service.

Duolingo

If you want to learn a new language and don't want to pay anything at all, you can give Duolingo a try. The creators say the site is completely free and there are no hidden fees or charges.

How can that be?

Well, Duolingo uses a bartering system of sorts. Meaning, the site will help you practice a new language by giving you documents to translate.  Specifically, Duolingo finds someone who needs a webpage translated. The page is uploaded to the site and you translate it.

In theory, this method allows users to get real-life practice with their new language and get more ownership of it.

Of course the site is for people who are much further along in their new language and are already comfortable writing and speaking it.

Busuu.com

Another good app for learning a new language is Busuu.com.

The difference with Busuu is you can access a live tutor who speaks the language you're trying to learn. So instead of accessing virtual tutors and work exercises, you get to speak to a real person from the Busuu community. 

The creators of the app say it has over 150 learning units that teach a broad range of topics. The company uses both image and sound along with the live tutor, so you get one-on-one training and get to learn on your own too.

Basic features of the app are free to use, but premium access will cost.  Busuu is available for both Apple devices and Androids.

Look, many of us are busy these days and taking the time out to learn a new language could be extremely challenging, which is why using a website or an app may be better.

Plus, a lot of people have most of their free time when they're commuting or traveling, which is another reason why learning a language on an app or website seems to make sense.

Let's face it, the world is getting smaller.Through modern technology, the Internet and 24 hour news outlets, a lot of foreign places don't seem that fo...

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Samsung, Apple smartphones both draw their fair share of complaints

Samsung remains the top-selling mobile phone in the world, according to the latest figures from Gartner, a technology research firm. Sales grew 13% in the first quarter of 2013 with its market share of smartphones reaching 30.8%.

Apple, meanwhile, sold 38.3 million iPhones in the first quarter, which only put it in third place, behind Nokia. Nokia, however, continues to lose ground because most of its sales continue to be for so-called feature phones, not smartphones. In the smartphone world, the race seems to be between Samsung and Apple.

We wondered which company is doing better among consumers. Any product will draw consumer complaints, but what kind of complaints does each product draw? Are consumers less satisfied with one over the other?

First, let's take a look at what consumers are saying about the iPhone. Dana, of Gardena, Calif., has a complaint about his older iPhone, the 3GS he purchased more than two years ago.

Exploding battery

Consumers rate Apple iPhone

"Last week, the phone imploded from a faulty battery while it was sitting on my desk," Dana wrote in a ConsumerAffairs post. "I watched the phone expand and bust open. When contacting Apple, they said the phone was out of warranty and I would have to buy a new phone. When I went to their support site, I found hundreds of people with the same complaint and Apple is doing nothing about it."

Shirley of Bellflower, Calif., also has an older iPhone, a 4S purchased about a year and a half ago. She says she was trying to update to iOS 6.3 when it froze.

"The music updated perfectly; however, when it was time for my 2,800 photos to sync, I received an iTunes image with a plug," she writes. "We tried everything to no avail. After visiting an Apple store in Las Vegas, the technician informed me it had to be reset to factory settings. My head and heart began to hurt; after all, I have photos that are irreplaceable."

And then there's this from Jeff, in Santa Fe, N.M.

Disillusioned Apple fan

"I have been a loyal Apple customer since 1984," Jeff wrote in a post. "I have bought hundreds of desktops, laptops, peripherals, iPods, iTouches, and iPhones over the years. iPhone 4S doesn't maintain battery charge, Siri is 99.9% useless."

He's also upset that customer service leaves him on hold for long periods of time and failed to return promised phone calls.

"Apple has clearly gotten too big to be responsive any longer," he writes. "They were so good for so long, then something changed. I am seriously looking, for the first time, for a better customer service experience."

If he looks toward Samsung, operating on the Android platform, he may or may not find what he's looking for. For Samsung draws consumer complaints as well.

Lots of issues

Consumers rate Samsung Cell Phones

"The Galaxy S3 and Note 2 - There are a lot of issues. Where should I start?" asks M, of Springfield, Ill. "The Bluetooth does not work when third party app, like Skype, is on. If call was received, it will disconnect. Third party app is unresponsive. There is color saturation change issue. There's a battery draining problem. Battery only works only 4-5 hours a day. Data keeps on collecting. All apps do not close on force shut. If Wi-Fi is turned off, it automatically turns on."

Many of the Samsung complaints have to do with software issues. But Priya, of Mumbai, India, is among those reporting battery problems.

"I bought a Samsung Galaxy S2 in November 2012," Priya writes. "Within days, the battery started draining out - sometimes from 75% to 30% within a few minutes, even when the cell phone is not in use. The instrument shuts down too."

Disillusioned Samsung fan

Dhrupad, of Ahmedabad, India, is the Samsung equivalent of Jeff, of Santa Fe, the long-time Apple fan.

"I have been a great fan of Samsung Mobile since the beginning," Dhrupad writes. "I purchased Galaxy SIII on 18th of June 2012. Everything was running smooth until 4th of September. The phone started rebooting from the welcome screen itself. Upon contacting the service center, I was informed that it is a software issue and they reinstalled the software. Still, the problem persisted."

Dhrupad's experience notwithstanding, most of the Samsung and Apple reviews from ConsumerAffairs readers concern older models. Samsung's latest offering is the Galaxy S4. Apple's latest is the iPhone 5. There are fewer reports of problems with these flagship products.

In fact, there is no consistent pattern of complaints about either manufacturer, other than the perception that some of Apple's earlier magic may be wearing off. But when choosing between these companies, extensive reading of reviews may provide consumers some solid insight into which way they should go.

Samsung remains the number one selling mobile phone in the world, according to the latest figures from Gartner, a technology research firm. Sales grew 13 p...

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Privacy, safety questions about Google Glass

If it lives up to Google's expectations, Google Glass may turn out to be the next big thing. But besides winning public acceptance, the odd new device has to face some very real hurdles, including possible restrictions by regulatory agencies and, of course, Congress.

There are also growing warnings that wearing the device may be an invitation to crime, just as smartphones, iPads and laptops are frequent targets of criminals who not only make off with an expensive device but also with quite a bit of the victim's personal information -- a practice known as "Apple-picking."

On the legislative front, Rep. Joe Barton (R-Texas) and seven other members of the Congressional Bi-Partisan Privacy Caucus are asking Google CEO Larry Page for more information about Google Glass, saying they're concerned about possible misuse of information gathered by consumers wearing the miniature computer.

“As members of the Congressional Bi-Partisan Privacy Caucus, we are curious whether this new technology could infringe on the privacy of the average American,” the letter says.

The letter also poses several questions aimed at making sure consumers' rights are protected, including:

  • When using Google Glass, is it true that this product would be able to use Facial Recognition Technology to unveil personal information about whomever and even some inanimate objects that the user is viewing? Would a user be able to request such information? Can a non-user or human subject opt out of this collection of personal data? If so, how? If not, why not?
  • In Google’s privacy policy, it states that the company “may collect device-specific information (such as your hardware model, operating system version, unique device identifiers, and mobile network information including phone number).” Would Google Glass collect any data about the user without the user’s knowledge and consent? If so, why? If not, please explain.
  • Will Google Glass have the capacity to store any data on the device itself? If so, will Google Glass implement some sort of user authentication system to safeguard stored data? If not, why not? If so, please explain.

The letter asks Page to respond no later than Friday, June 14, 2013. A complete copy of the letter to Google can be found here (pdf).

Others signing the letter include, Rep. John Barrow (D-GA), Rep. Steve Chabot (R-OH), Rep. Henry C. "Hank" Johnson Jr. (D-GA), Rep. Walter Jones (R-NC), Rep. Richard Nugent (R-FL), Rep. Bobby Rush (D-IL) and Rep. Loretta Sanchez (D-CA).

Risk of theft

And then there's the little problem of crime. Google Glass is not exactly something you can hide in your briefcase, backpack or jacket pocket. It sits right there on your face in plain view. 

It's now quite commonplace for smartphones, iPads and similar devices to be yanked right out of the user's hand by street thugs who roam the subways, cafes and coffee shops. 

Besides their monetary value, portable computing devices increasingly have a lot of very valuable and sensitive personal information stored on them, or contain code that will connect you to the user's info online.

It's not hard to foresee this becoming a major problem. While admittedly, Google Glass would capture an image of the crook approaching the victim, that's not likely to be much consolation.

While companies always assure us they have thought of everything, it often turns out not to be the case, as New York Attorney General Eric Schneiderman has noted in letters to the CEOs of Apple, Google, Microsoft and Samsung, requesting that they make changes to their devices that would make it harder for crooks to wipe out the previous user's info in preparation for selling the loot.

In New York City alone, a total of 11,447 cases of stolen “iDevices” (iPhones and other iOS devices) were reported to the New York City Police Department (NYPD) between January 1 and September 23, 2012, a rise of 3,280 over 2011, Schneiderman noted.

“The companies that dominate this industry have a responsibility to their customers to fulfill their promises to ensure safety and security," Schneiderman said. "This is a multi-billion dollar industry that produces some of the most popular and technologically advanced consumer electronic products in the world.  Surely we can work together to find solutions that lead to a reduction in violent street crime targeting consumers.”

Incidents turn violent

Schneiderman listed some recent cases of Apple-picking that have turned violent, including:
  • On April 19, 2012, a 26-year-old chef at the Museum of Modern Art was killed for his iPhone on his way home to the Bronx.
  • On April 2012, twenty-year-old Alex Herald was stabbed during an iPhone theft.
  • In September 2012, in three separate incidents, women were violently attacked for Apple and Samsung devices.
  • In February 2013, three people were stabbed on a subway platform in Queens in a fight over an iPhone.
  • Earlier this month, a woman was mugged at gunpoint in Crown Heights for her Android device.

Several members of Congress have submitted a letter to Google CEO Larry Page (pdf) asking about privacy concerns related to Google Glass and its ...

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Malware protection for your smartphone

Security experts are constantly telling us that we should have some kind of software protection for our mobile devices. Hackers and scammers are increasingly targeting the mobile world because it's a huge and growing target and it's mostly unprotected.

Fortunately there's a wide range of security software and apps that can provide protection and peace of mind, usually for less than what you pay to protect your PC. Here are a few products to consider if you are concerned about the security of your mobile device.

BullGuard Mobile Security

BullGuard Mobile Security 10 runs on Android, Symbian, Blackberry and Windows Mobile phones. In addition to providing antivirus protection, BullGuard scans all your apps, filters spam, blocks malicious code and offers a SIM card lock.

When you open an online account you have the ability to back up your smartphone data as well as lock and wipe your phone remotely, should it be lost or stolen. With a remote wipe, all you have to do is go to your PC, access your remote wipe settings and wipe. The software will access your phone and return the device to its factory settings, erasing your personal information and data.

BullGuard Mobile Security 10 costs around $21 and, while it doesn't provide protection for the iPhone, another product – Lookout Premium – does.

Lookout Premium

It offers a robust antivirus protection, scans apps, filters annoying spam, is able to lock the SIM Card and blocks malicious code. If you misplace your phone you can activate an alarm that will help you located the device or see its location using GPS.

If you suspect it has been stolen you can wipe the data using your PC and erase the data saved on the device. It allows you to back up your data to a cloud-based account so you can restore it if the device turns up. Lookout Premium costs about $30.

McAfee Mobile Security

McAfee is a familiar name in security software, having provided antivirus products for PCs for years. McAfee Mobile Security also provides real-time protection, scans files, downloads, apps and the SD card for dangerous content. An antivirus shield keeps spyware and phishing sites at bay.

The McAfee product offers unlimited cloud storage for your data, as well as videos and photographs. If a phone is lost or stolen, you can restore your data from your cloud account to a new phone.

Like other products McAfee Mobile Security allows you to lock and wipe the device, using your online account. The package costs around $30.

Norton Smartphone Security

Norton is another name from the PC security past. Norton Smartphone Security 5.0 offers antivirus, antispam and firewall protection. With the firewall, you can enable or limit access by setting the appropriate level of protection you want. This package can also reduce annoying spam in both text and multimedia formats.

Among its features, Norton Smartphone Security incorporates automatic scanning. When it detects a potentially infected file, it is placed in quarantine where it can do no harm. If your phone is lost or stolen, you can lock or wipe it by simply sending a text message to the phone with the correct command and password.

Businesses that allow their employees to use their personal smartphones to access the corporate network have a big concern. They have to ensure that an employee's tainted smartphone doesn't compromise the network.

Sophos Mobile Device Management

Sophos, an enterprise security software company, offers Mobile Device Management, which supports a number of platforms, lets companies manage and control mobile devices accessing the network – both company-owned devices and those owned by employees.

Using a web-based admin console, you can manage apps and control access to company resources such as email.

As smartphone have proliferated there has been a debate about the need for and effectiveness of mobile security apps. Lately, many experts are arguing they are well worth the investment.

Popular Mechanics recently suggested that skipping security software was high among "The 10 Worst Things You're Doing With Your Smartphone." The Federal Communications Commission (FCC) says fewer than one in 20 smartphones and tablets are equipped with security software and less than 50% of smartphone owners use password protection on their devices.

Security experts are constantly telling us that we should have some kind of software protection for our mobile devices. Hackers and scammers are increasing...

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AT&T launches Aio Wireless, a new prepaid brand

AT&T  is launching a new brand, Aio (pronounced “A-O”) Wireless, a data-centric prepaid wireless service that AT&T says will provide "a first-class wireless experience at a value price, without an annual contract."

Aio will run on AT&T's network but will not have access to its highest-speed LTE network, meaning that while customers may be getting unlimited data, they may have to be a little patient when downloading large files. Network speed isn't as much of a factor in text and voice communications.

So is Aio a response to T-Mobile's recent removal of long-term contracts from some of its service brands? AT&T says it's not. 

“We talked with no-annual-contract customers and created our service around what they want.  They want simple, easy plan choices with unlimited offers; first-class service at affordable prices; great devices; nationwide voice and data coverage; and no annual contracts. Today’s wireless customers don't want to compromise,” said Jennifer Van Buskirk, president of Aio Wireless. “We are set up to win over value-conscious customers who are increasingly moving towards smartphones and mobile broadband.” 

Florida & Texas

Aio debuted in Houston, Orlando and Tampa and will be rolling out to other cities over the coming months, AT&T said.

Aio will have its own dedicated stores and will be sold with three rate plans to choose from. Aio’s unlimited talk, text, and data rate plans range from $35 to $70 per month, with pricing varying by market, and will offer 4G download speeds of up to 4Mbs per second.

The company insists there will be no hidden charges. "The price you see is the price you pay," AT&T said. Customers can bring a compatible, unlocked device for activation on the Aio network. 

AT&T already has a prepaid service, called Go Phone but Aio is targeted more at data-centric users, the company said. Smaller wireless carriers have traditionally done well with prepaid services, which have been mostly shunned by the bigger carriers.

AT&T  is launching a new brand, Aio (pronounced “A-O”) Wireless, a data-centric prepaid wireless service that AT&T says will ...

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DTOX: A new way to help beat addiction

Alcohol and drug abuse are huge problems in this country. According to statistics from the American Council for Drug Education, 10 to 15 million people in The U.S. are addicted to alcohol.

And based on figures released by the National Institute on Drug Abuse, 2.1 million people in the United States had to seek emergency treatment for drug abuse and that was just in the year 2009.

Perhaps it's not surprising that these and other forms of addiction are huge problems in the U.S. and all around the world.

High-tech help

But what may be surprising is how today's technology is helping people overcome their addiction.

Take the smartphone app DTOX for example. It has all kinds of helpful features to assist a person going through the recovery process.

"DTOX is a recovery app for your smartphone that helps you overcome addiction," said Rae Dylan, an interventionist and the creator of DTOX, in an interview with ConsumerAffairs. "DTOX not only tracks your daily progress but also helps you build the support structure that everyone needs when trying to change their life. By incorporating DTOX into your daily routine, you will be taking an important first step on the road to recovery."

Dylan says DTOX assists families of addicted patients too. 

"DTOX connects users together," she says. "It helps to show how others are feeling in their moods based on their days off their dependency. It provides inspiration and evidence that people are able to get clean and stay off their substances with each other, with work and dedication." 

The app is also able to track a person's detox history, document a particular feeling or craving and send daily motivational messages.

Part of the solution

Right off the bat, some people may be skeptical about using an app to help beat their addiction, but Dylan says DTOX should be used along with other types of assistance.

"The app is a tool to be used in conjunction with other elements of recovery," she said. "You can use it to be connected to others; you can use it to provide a sense of anonymity. You can use it to find your way in what you might not know you need yet to get sober."

"Many addicts are skeptical in general and that is why they continue to think that they cannot get clean," Dylan points out. "If you cannot fathom it then you can't start to open yourself to the awareness that people all around you have been addicted once and are recovering."

Dylan has been coaching addiction patients for 10 years and has worked with rehab facilities, psychiatrists, doctors and 12- step program coordinators as well.

She says working with people suffering from a dependency and the professionals who try to assist them gave her the perfect kind of experience to create DTOX.

"There are all kinds of people and there are many facets of addiction," she says. "Addiction is the aftermath of an emotional disturbance and/or genetic disposition. Working with people who are in recovery themselves has proven to be extremely successful because it helps one to realize that it takes understanding, knowledge and experience. You will be able to accept help like that as an addict, when you are getting help from someone who has been there."

Help at your fingertips

The benefit of using an app during the recovery process is that your smartphone is always with you, says Dylan, adding that with the support the app gives, DTOX serves as a constant teacher and helps to remove some of the fears that are associated with starting recovery.

"Because of technology today, privacy for many addicts seems so terrifying," Dylan said.  "The phone is our constant companion. If we could turn our phone into a tool for recovery, then we could perhaps see that what we think we know -- we do not know how to do."

In addition, Dylan says helping people overcome their addiction and making them feel more confident about beginning recovery is really why she created DTOX.

"There are people that are on the recovery road that have lived miracles along their journey and can help others have hope," she said.  "If we see evidence that we can do something about addiction and all the fear that surrounds it, then we are sure to see that DTOX is another way to get connected."

According to statistics from the American Council for Drug Education, 10 to 15 million people in The U.S. are addicted to alcohol.And based on figures re...

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Here's how to learn an instrument in 2013

Somewhere during the last couple of decades the process of creating music has gone extremely digital.

At one time in order to learn an instrument, you had to take lessons. There was really no other choice, unless you taught yourself. 

For example, I have a friend who taught himself to play bass guitar and he was able to join a prominent local band in just a few months, so it is possible to teach yourself to play by just grabbing an instrument.

But for most of us, learning to play an instrument, at least well, can take several years. And sometimes the long amount of time it takes is what finally leads us to quit or to put off learning in the first place.

But these days, things are a bit different and if you don't want to take music lessons the traditional way, you don't have to. 

There are a bunch of apps that have been created to make it really easy for you to learn the piano, guitar, drums or just about any other instrument you can think of.

Jump right in

Like the app Playground Sessions that allows you to learn the piano while  playing some of today's most popular songs. The app was made for those people who don't have either the patience or desire to learn things like music theory or scales. And it allows folks to pretty much jump into playing right away.

In addition, the app keeps score of your progress and provides feedback in real time, so you know how much you're progressing.  The idea behind keeping score and providing feedback is to make learning an instrument sort of like a game, so learning is easier and more fun, its creators say.

Playground Sessions gives tutorials by famed pianist David Strides, so beginners won't feel totally alone while they're learning how to play. In addition, the app was co-created by legendary producer Quincy Jones, for whatever that's worth.

Then there's the app Percussive that allows you to learn five instruments if you want. Users can learn how to play xylophone, kalimba, glockenspiel, marimba and vibraphone, which all fall in the group of instruments called idiophones.

Each instrument comes up virtually on the app and looks like the real thing, so it feels like you went to the music store and actually purchased an idiophone.

And according to the reviews on Percussive, the virtual instruments sound like the real thing and are great for learning hand-eye coordination, which is always needed when learning an instrument.

Golden arms

The next app is DigiDrummer for all you percussion enthusiasts.

DigiDrummer allows you to create your own drum patterns if you're interested in making beats for yourself or other artists. It comes with eight drum kits, a built in sampler and a recording feature so you can hear back what you've created.

The app allows you to save your creations in its "Beat Library" as well.

DigiDrummer follows the current trend of producers taking bits and pieces of drum sounds to create entirely new drum patterns, which gives users an infinite number of sound possibilities to play with.

And the best part about the app is it's free, so it won't cost you a penny to bang around on the virtual drum pads and try to create the next musical masterpiece.

The next app, called PianoBall, is great for kids.

Rather than being a serious app that gives serious lessons, it's more like a toy that teaches kids music and colors at the same time.

Users can select the instrument they want to learn. Choose the song they want to play and follow along. But they can choose "auto" mode too if they want the app to do most of the playing.

The app uses "magic balls" to teach instruments and each ball allows users to paint the keyboard different colors, so kids can learn notes and colors at the same time, which is pretty cool.

Learn to read music

The app Learn Music Notes is a game that allows users to, well, learn music notes. So there wasn't too much creativity used on the name I guess? 

Here's how it works:

Music notes will appear on the screen and users will have to select the correct button to indicate the note. 

If you select the right note, the same note plays again so you can memorize it and ultimately lock it into your brain. If you choose the wrong note, your smartphone will vibrate and tell you what the correct note is. 

Users can take a one-minute test to see how much they've learned on the app or take a test with no time limit at all.

Furthermore, Learn Music Notes will save all of your tests so you can gauge how much you're learning and how much you've improved.

So today if you want to learn an instrument, do a quick download of an app. But you should probably expect a few dirty looks from musicians who learned an instrument the traditional way.

Musicians are like that sometimes.

Somewhere between the last couple of decades creating music has gone extremely digital.At one time in order to learn an instrument, you had to take lesso...

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Nokia wins injunction against HTC

Phone manufacturer HTC has been hit with an injunction in a lawsuit by competitor Nokia, threatening to trip up the progress of its new HTC One phone, which has already been hobbled leading up to its release.

The injunction was granted by a court in Amsterdam, and stemmed from parts of a microphone installed in the One. The microphone parts, manufactured by ST Microelectronics, are allegedly identical to parts in the microphone of Nokia’s Lumia 720. Nokia says that it invented the parts in question and that they were made solely for use inside Nokia phones.

"HTC has no license or authorization from Nokia to use these microphones or the Nokia technologies from which they have been developed," read a statement from Nokia.

"In its marketing materials, HTC claims that its HDR microphone is a key feature for the HTC One, but it is Nokia technology, developed exclusively for use in Nokia products.”

More problems for the One

The injunction is one more hurdle for HTC, which has struggled with delays for the One. The flagship phone was originally scheduled to be released in February, but just last week became available in AT&T and Sprint stores.

The pressure is on for the Taiwanese manufacturer, which reported record-low profits in the first quarter of 2013. The company posted a net income of $2.8 million, an eye-popping 98 percent decline from the first quarter of 2012.

The company said it is  “considering whether [the decision] will have any impact on our business and we will explore alternative solutions immediately."

The injunction, which prohibits ST from selling microphone parts to HTC, will remain in effect until March 2014.

Nokia and HTC have a lengthy litigation history, with Nokia having filed around 40 other patent cases against HTC.

Phone manufacturer HTC has been hit with an injunction in a lawsuit by competitor Nokia, threatening to trip up the progress of its new HTC One phone, whic...

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Alleged mobile phone crammer slammed by Feds

The Federal Trade Commission (FTC) is going after a company that allegedly placed unauthorized charges on consumers’ mobile phone bills, taking in millions of dollars.

The complaint against Wise Media, LLC, Brian M. Buckley and Winston J. Deloney is the first time the agency has gone after so-called mobile “crammers.” It asks the court to freeze the defendants’ assets immediately and order them to stop their “deceptive and unfair practices.”

The FTC also wants a permanent injunction that would force the defendants to give up their ill-gotten gains so they can be used to provide refunds to victims of the scam.

“The concept of ‘cramming’ charges on to phone bills is a not a new one,” said FTC Chairwoman Edith Ramirez. “As more and more consumers move to mobile phones, scammers have adapted to this new technology, and the commission will continue its efforts to protect consumers from their unlawful practices.”

'Premium service' charges

According to the FTC, the defendants allegedly billed consumers for “premium services” that sent text messages with horoscopes, flirting, love tips and other information. The complaint contend that consumers across the country were signed up for these services seemingly at random, and that the charges of $9.99 per month were repeatedly placed on mobile phone bills -- without consumer knowledge or permission.

In many instances, the complaint maintains, Wise Media sent text messages to consumers that suggested they were subscribed to the service, which many consumers dismissed as spam and ignored. Even if consumers responded via text indicating that they did not want the services, they were charged on their mobile phone bills on a continuing basis.

Caught unaware

The commission says Wise Media and its operators took advantage of the fact that consumers may not expect their mobile phone bills to contain charges from third parties and that these charges appear on bills in an abbreviated manner that does not always clearly designate the company as the source of the charge.

As a result, it says, many consumers didn’t notice or understand the charges and paid the bills. To the extent that consumers did notice the charges, the process of obtaining refunds was difficult and often unsuccessful according to the complaint.

Wise Media is accused of going to great lengths to hide its contact information from consumers. And it says, when consumers were finally able to find a phone number for Wise Media, the company's call center employees frequently promised refunds that were never provided.

In addition to Wise Media, Buckley and Deloney, the FTC complaint names Concrete Marketing Research, LLC, alleging that it received ill-gotten funds from the operation.

Common practice

Just because you haven't had any dealings with Wise Media, don't think you can't be affected. Complaints about cramming -- from many sources -- are not unusual.

"T-Mobile keeps billing me for incoming text messages," William of Mt. Morris, Mich., wrote in a ConsumerAffairs post. "I have no control over these and shouldn't be billed for them. One message was from a third party selling something. Another was from T-Mobile. I called, but they won't take the charges off. Furthermore, they refused to block text messaging on my account."

Many of the complaints ConsumerAffairs receives are from parents whose children decided to use text messaging or scour the Internet from their cell phone.

"We purchased a plan for our daughter who was entering college," Charlene of Greenville, Miss. wrote. "When the first bill came it was for over $600. The text messaging option is the main means of communication for my daughter. We had been charged for each incoming and outgoing text message -- 10 cents per message."

Belkis of New York is a single mother with two children. When her children surfed the Internet and downloaded a ringtone with her cell phone, her bill was $80 higher than normal that month.

The Federal Trade Commission (FTC) is going after operation that allegedly placed unauthorized charges on consumers’ mobile phone bills, taking in millions...

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Your old smartphone may be worth real money

Just about everyone now has a cellphone. In fact, a recent report on U.S. cellphone ownership showed there are more cellphones than people in the U.S.

New product launches become events, with consumers eagerly lining up to purchase the latest iPhone or Android device. Which raises the question – what do you do with your old phone when you update to the latest model?

When you activate your new phone, your old phone is deactivated. While it no longer works as anything more than a paperweight, it contains your sensitive data on its hard drive, so the last thing your want to do is throw it away. Besides, throwing your old phone into a landfill can harm the environment.

Another good reason not to dispose of your phone is it probably retains some residual value, depending on its age, model and condition. There are a growing under of companies that bring together consumers who have old cell phones and companies that want to buy them. One of them is uSell.

Sell with a few clicks

“Let's say a consumer has an iPhone 4 they are no longer using because they upgraded to the iPhone 5,” said Dan Brauser, President of uSell. “They could go onto our site and in a few easy clicks search for that device, select the carrier, the specific make and model, and give the condition of the device.”

When judging the condition of the device, there are only three choices; it's either “broken,” in “good” condition – meaning it has normal wear and tear – or it's in “perfect” condition, meaning it looks and works like it's new.

Once you have entered all the information about your old phone, uSell shops it around on your behalf, acting as a broker.

“Based on the information the consumer provides, we go out and ping our network of buyers and return the price quotes those buyers have offered,” Brauser said.

In some cases a device that's in heavy demand might draw 15 or more offers. In addition to the offer price, consumer reviews provide some information about prospective buyers that can help a seller choose one.

Consumer reviews

“We display the offers on a ranked basis that takes into consideration both the reviews and the offer price,” Brauser said. “It's possible the offer that shows up at the top in our Best Match system may not be the best price. The offering company with the lower price might have a couple hundred more reviews and have a five star average.”

If this sounds a bit like the eBay model, it's close but with a difference. The sellers on uSell just want to sell electronic devices and the buyers – many of whom you will find on eBay – just want electronic devices. Brauser says some of the purchased devices might actually later be sold on eBay.

“A lot of our buyers are eBay power sellers and they're using our platform to actually acquire their inventory,” he said.

Once a consumer accepts an offer, the purchaser mails a packing kit with pre-paid postage, so that the consumer can ship the device at no cost and with minimal effort. Once it's received, any remaining data on the phone is wiped and the consumer is paid, either by check or through Paypal.

Replacement phones

Besides being sold on eBay, the used phones are sold to warranty providers, who often fill claims with refurbished models. Many are also sold overseas, where a particular phone might not be available from the manufacturer. The iPhone, for example, isn't available in some Latin American markets.

“In South Florida, if you go into the Apple Store, you're going to find a lot of Latin American tourists who are buying iPhones while on vacation and taking them home, where they aren't available,” Brauser said.

Phones are also sold to consumers who will buy a second-hand iPhone or Galaxy S II if it means they don't have to sign up for a new contract.

Even if your phone is broken, it might be worth something because of the materials inside it. For example, some manufacturers use small amounts of gold and silver to produce smartphones – materials that can be extracted and sold or reused.

With consumers buying new cellphones every two years – sometimes even sooner – it's easy to acquire a collection of old smartphones. Sites like uSell are a way to recycle them, maybe picking up a few bucks for your effort.

Just about everyone now has a cellphone. In fact, a recent report on U.S. cellphone ownership showed there are more cellphones than people in the U.S.New...

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Facebook losing some of its luster with teens

Facebook has been generating a lot of hype around its Facebook Home app for Android phones, being released today, but a new study from Piper Jaffray may be more telling.

The investment bank says teens are drifting away from Facebook and  YouTube. This should come as no surprise, since teens get quickly bored with just about everything, although they may now be doing so at an increasing rate.

The Piper Jaffray study found that while Facebook is still the most important social network for teens, usage is down nine percent since last year.

One thing that may be creeping out teens is the flood of parents and grandparents who have gravitated to Facebook. After all, who wants to hang out with a bunch of old people?

So where are kids congregating these days? Jaffray's report says Reddit, Vine, Snapchat, Kik, and 4chan are trending up, as they say, these days.

Shopping online

Other findings from the Piper Jaffray study:

  • Teens are shopping more online. Approximately 79% of females and 76% of males shop online, and respondents indicated that roughly 18% of their spending is online. Nearly 70% of teens indicate they prefer to shop the Web sites of their favorite stores-based retailers.
  • Teens are increasingly choosing organic food options, with 42% eating organics versus just 33% two years ago. When eating out, 57% of teens prefer limited service restaurants, up steadily from 43% four years ago. 
  • Mobility and connectedness are driving nearly 91% of teens to purchase a smartphone for their next wireless device, with approximately 60% biased toward Apple and 21% likely to buy an Android device.

Facebook has been generating a lot of hype around its Facebook Home app for Android phones, being released today, but a new study from Piper Jaffray may be...

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The creators of Shazam add a TV component

If you’ve been using the artist and music app Shazam that allows you to identify a certain a song that’s playing and who the artist is, you might find its new TV feature appealing.

Let’s say you’re watching the HBO comedy series "Girls" and you want to know exactly what Marnie—one of the main characters—is wearing.

Or let’s say you’re viewing the “Today Show” and you’re dying to know the designer behind Matt Lauer’s suit. You can use Shazam and it will tell you who the designer is and other important information that will help you locate the suit and buy it.

The creators of Shazam say the new feature will work in the same way the music component does, by allowing you to “tag” a TV show so you can get information on what that product is and how to get it.

A little ways back, the creators of Shazam added the TV feature after a countless number of users were using the app to learn which songs they were hearing, no matter how old or obscure the songs were, and once that new feature was added, users of the app could tag a program and receive fan information like how to get merchandise and other details of a show a fan may want.

Media engagement

Andrew Fisher, CEO of Shazam, said the company is calling this added TV feature “media engagement,” and he expects it to make some pretty big waves in the market.

“We have the ability to identify the product in a TV show, so that when somebody Shazams it, they could find out where a presenter’s dress is from in one click,” said Fisher in an interview with The Guardian. “We are focused on creating a new category, which we call media engagement.”

“We make it easier for consumers to engage with a brand of a piece of content they are interested in, without having to go through search engines, then mining the results," he said. "That works with both TV programming and advertising: a 30-second slot can be turned into a three-minute brand engagement and more.”

The way the music and TV features of the app work, is by the company creating an extremely large database of content, so when users tag something, it takes that particular snippet of what's being tagged and matches it to the content in the database.

In addition, Fisher says that getting background information on TV programs through Shazam is much better than simply hitting the info button on your cable remote, because doing it that way makes everyone watching the show with you have to view the background information too.

More control

Shazam allows each individual viewer to have more control over researching a particular program while it's playing.

“With Shazam, individuals can access a cast list, details of the soundtrack, read tweets from the actors, check out the script, buy onscreen product and a whole lot more on their individual mobile devices without disrupting anyone else’s viewing,” explained Fisher.

With the music component of Shazam already being used by people all over the world and the TV feature just starting to make a splash among users, Shazam could be the new way we search for most things in the future.

Of course now, one needs to use a search engine like Google to research something and after typing or speaking what you want to search, information pops up, which is fast, but still takes a little time.

But imagine a service like Shazam where all you had to do was allow your phone to touch something or tag it, and afterwards, you’d immediately know everything you wanted to know about the item you searched.

It’s clear to see Shazam’s creators have grasped the fact that many consumers are all about obtaining background information to the things they’re interested in these days, and it’s just not good enough to watch, listen or buy something without doing a fair share of investigating first.

So in the future, Shazam being used to tell a person what type of car that’s driving down the road may be possible or tagging what a person is eating or wearing in person could be possible too.

And Shazam isn’t only benefitting consumers, says Fisher, because companies are taking advantage of the app too, which makes sense, because if you’re a brand that wants to capture a particular audience, why not work with one of the hottest apps on the market to reach them.

“Global brand advertising is worth about $1 trillion, so anyone who can tap into that is going to be richly rewarded, said Fisher. “We want Shazam to be that company. There are 5 billion mobile phones in the world, so we are only at 5% of the market opportunity: that’s a lot of growth and development potential.” 

If you’ve been using the artist and music app Shazam that allows you to identify a certain a song that’s playing and who the artist is, you mig...

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PrankDial -- some think it's funny, others don't

The phone rang and an angry African-American man accused me of hitting his car. "Your dented my fender and broke my taillight, b, yes you did," the caller said.

The call was convincing enough that I halfway believed it, even though I had placed it myself on PrankDial.com, a website that lets you place a dizzying array of prank calls to your friends and enemies, and to perfect strangers, for that matter.

But not surprisingly, we've heard from a few consumers who didn't think the prank was very funny, like Josh of Middleville, Mich.

"I received a call from a local number saying that I had adult porn movies and I needed to return them," Josh said in a ConsumerAffairs posting. "I have a young daughter and what if she would have answered my phone and heard this? And before I knew it was a prank, I was getting very upset and stressed out. This website should be illegal."

Horseheads haw-haw

Lorraine of Horseheads, N.Y., was embarrassed in front of her children.

"I received a call. My 12-year old son and I heard it in front of kids ranging from 1-15 years old, [the caller] stating that he was very upset because he is my neighbor, and I stole his newspaper. ... I was so upset and shaking, this call just had me in tears in front of all the children," Lorraine said. "Then at the end, I was told it is a prank, that I had just been PrankDialed.com. How is that funny?"

Perhaps the scariest call was placed to Sarah of Waconia, Mich.

"They called and said that they were the government and that because I downloaded the Wikileaks cables, I was gonna be indicted on charges that would imprison me for five years and charge me a $250,000 fine," Sarah recalled. "I called the police and Verizon Wireless. I felt threatened and assaulted. I will be looking into who owns this website and would want them shut down."

But not everyone thinks the calls are all that offensive. 

"This is a fun little service that tries to put things in place so it's not abused too much," said Anthony of Cleveland. "But all of the people reviewing this clearly need to focus on actual important things in life rather than being offended at some obviously fake recording of a person they are taking to."

You could certainly build a case for saying PrankDial should get a life and go do something worthwhile. On the other hand, the site has nearly 300,000 "Likes" on Facebook and, used in moderation, might bring a chuckle or two. You get two free calls a day and some of us just might place a couple of prank calls to ourselves now and then, just to keep the day moving along.

For those of us who field what might sometimes be called crank calls, a plain old prankcall is quite a bit more entertaining.  

Your phone rings and an angry African-American man accuses you of hitting his car. "Your dented my fender and broke my taillight, b, yes you did," the...

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T-Mobile adds iPhone with no contract

On its way to the altar with MetroPCS, T-Mobile is perhaps trying to add a last-minute touch of glamour, something that's been a bit lacking the last few years. At long last, it's getting the iPhone -- and offering it without a contract, no less.

Not only will T-Mobile be offering the iPhone without a contract, it's also selling it more cheaply than its rivals -- just $100 upfront, plus $20 a month for two years. Not having a contract means customers can dump T-Mobile before the two years is up, but they'll still have to make the $20 payments until the loan is paid off. 

Consumers can also use unlocked phones on the T-Mobile network, something most carriers don't allow. 

T-Mobile says it will also be offering other high-end smartphones, like the Samsung Galaxy S 4 and the BlackBerry Z10 with similar payment planes.

T-Mobile says this is all part of its new "Un-carrier" attitude. It's trying to act less like a wireless carrier and more like a customer-focused retailer, saying it wants to "address consumer frustration with the unnecessary cost and complexity of wireless."

“These bold moves serve notice that T-Mobile is canceling its membership in the out-of-touch wireless club,” said John Legere, president and CEO of T-Mobile USA, Inc. “This is an industry filled with ridiculously confusing contracts, limits on how much data you can use or when you can upgrade, and monthly bills that make little sense. As America’s Un-carrier, we are changing all of that and bringing common sense to wireless.”

Radically simple

Legere said the Un-carrier campaign includes:

  • simplifying its lineup of consumer rate plans to one "incredibly affordable plan" for unlimited talk, text and Web;
  • ensuring that customers never have to sign another annual service contract through T-Mobile retail outlets; and
  • enabling customers to get the most popular smartphones whenever they want for the lowest upfront cost.  

Merger approved

Federal regulators earlier this month gave their blessing to the merger of MetroPCS and T-Mobile USA, potentially creating a bigger and more powerful player in the wireless arena that's now dominated by Verizon and AT&T Wireless.

The Federal Communications Commission (FCC) said the deal would boost competition by creating the fourth-largest competitor, after Sprint. The Justice Department has also signed off on the transaction.

T-Mobile USA's parent company, Deutsche Telekom, will own 74% of the combined company.

-Mobile Adds iPhone, Unveils No-Contract PricingT-Mobile USA, long trailing its rivals in the cell phone industry, is trying to catch up by changing the co...

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Feds approve T-Mobile/MetroPCS merger

Federal regulators have given the go-ahead to the merger of MetroPCS and T-Mobile USA, potentially creating a bigger and more powerful player in the wireless arena that's now dominated by Verizon and AT&T Wireless.

The Federal Communications Commission (FCC) said the deal would boost competition by creating the fourth-largest competitor, after Sprint. The Justice Department has also signed off on the transaction.

T-Mobile USA's parent company, Deutsche Telekom, will own 74% of the combined company.

MetroPCS offers no-contract, month-to-month service and T-Mobile has traditionally undercut Verizon and AT&T in its contract offerings. 

Neither carrier covers the entire country with its network and the combined company won't either. Also, neither offers the iPhone. That's estimated to have caused the loss of 1.7 million customers at T-Mobile. 

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The boards of both companies have approved the deal, although dissident shareholders at MetroPCS are holding out for better terms. Two large shareholders say the company should remain independent if it can't strike a better deal.

In a news release, the companies urged shareholders to approve the merger.

"If stockholders vote against the proposed combination, there is no assurance that MetroPCS will be able to deliver the same or better stockholder value," they said.

“Our combined company will have the products, spectrum, scale and resources to shake up this industry and deliver an entirely new wireless experience," said John Legere, President and CEO of T-Mobile.

“We are pleased with the FCC’s approval of the proposed transaction,” said Roger D. Linquist, Chief Executive Officer and Chairman of the Board of MetroPCS. “We thank the FCC for its prompt review of our proposed combination with T-Mobile, which will create the value leader in the United States wireless marketplace.”

Federal regulators have given the go-ahead to the merger of MetroPCS and T-Mobile USA, potentially creating a bigger and more powerful player in the wirele...

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Charging your smartphone is getting easier

From the time people started using cellphones, keeping the battery charged has been a challenge. It got worse a few years ago when smartphones flooded the market.

It turns out data usage -- sending and receiving email, accessing the Internet and using apps -- drains a cellphone battery much faster that making a phone call. And not all data usage is created equal.

When Apple updated the iPhone's operating system last year, a number of users found their batteries drained even faster than usual in the iPhone 4 and 4S. In a recent study, Purdue University computer scientist Abhinav Pathak found that apps you can download for free tend to drain batteries faster than those you pay for. The ads gobble up energy by tracking user habits and running other tasks in the background.

Regardless of the reason for battery drain, manufacturers are not only working on ways to extend battery life but make it easier and faster to recharge them.

Wireless charging

In the meantime, a number of manufacturers have devices that can charge your phone without having to plug it in. All you do is place it on a pad that's plugged into an outlet.

Many of the devices use the Qi wireless charging standard, backed by Energizer. It works through magnetic induction, allowing power to be transferred from a charging mat or even a speaker dock to a smartphone’s battery.

Battery maker Duracell got into the act last year with its PMA system, teaming with AT&T, Google and Starbucks, working to create an “ecosystem” of wireless power. It also uses inductive charging and, besides consumer products, is working to install these wireless charging pads in public spaces. Delta Airlines recently installed PMA-compatible Wireless Charging Spots in lounges and gates in a number of airports.

So as wireless technology continues to evolve, both the PMA and Qi systems will compete for dominance.

Monster Watts, a producer of power accessories for both Apple and Samsung phones, has just introduced three wireless chargers for the Samsung Galaxy S3. The Stealth wireless receiver is ultra-thin and fits under the S3 existing back cover.

The Simple wireless receiver back cover and charger set has a similar install process. The company says it adds only about 1 mm to the thickness, and will fit into most standard flexible cases.

Charging on the go

The Super Pack model is an external case with a built-in wireless receiver and rechargeable back up battery. The S3 slides into it and charges wirelessly. Gavin Carter, media coordinator for Monster Watts, says the Super Pack is about as close as you can get to wireless charging on the go.

“We actually have sold thousands of cases with built-in rechargeable battery packs that charge Apple iPhones and Samsung S3 on the go,” Carter said. “They are recharged via a micro USB port. However, for something to charge using the Qi technology standard, the transmitter would have to connected to an outlet. We did sample a Qi standard transmitter charging pad with a built-in battery pack but it felt too heavy and cost too much.”

Carter says the current systems require the transmitter and receiver to be touching, or almost touching, so the day you can charge your phone by walking through an airport or shopping in a mall is not here yet.

But the current crop of wireless charges make it faster and easier to keep your smartphone running. Monster Watts' three new offerings start at $68 and go to $118.

Hedging its bets

Google, meanwhile, is hedging its bets. The latest Nexus 4 phone from LG comes standard with Qi wireless charging. A number of technology sites are reporting that new phones from Samsung and Apple this year will include wireless charging.

Of course, what consumers would really like is a cell phone battery that lasts longer. Work is underway in that area too. Two years ago researchers at the University of Michigan invented what they call a "subconscious mode" for smartphones and other Wi-Fi-enabled mobile devices that could extend battery life by as much as 54 percent for users on the busiest networks. The product, however, is not yet commercially available.

From the time people started using cellphones, keeping the battery charged has been a challenge. It got worse a few years ago when smartphones flooded the ...

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Are mobile wallets really in our future?

Right now you probably carry your credit cards in a wallet. In the future, will you carry them in a smartphone?

You might. A few early adopters are giving it a try, with recent applications like Google Wallet, LevelUp and Square. These applications reside on your smartphone and store your credit card information. When making a purchase the data is transmitted electronically from your phone to the register.

“Some of the more common things you'll see with a mobile wallet is some kind of application you can use on your phone to store payment information and maybe some other things like rewards cards and coupons,” said Lisa Gerstner, who has written about mobile wallets for Kiplinger.

At least that's the ideal. Right now it's a very fragmented landscape with different players employing different platforms. It's reminiscent of the early days of the PC, when compatibility among manufacturers was a major obstacle. It took the dominance of Microsoft and the unversality of the Internet to make compatibility as an issue go away.

Cloud and NFC

Right now there are two main types of mobile wallets – those that operate in the cloud and those that are chip-based, using something called near field communication (NFC). Google Wallet, rolled out in 2011, is the latter category. Because the information is stored on a chip, not every phone will work. In fact, Google Wallet only works on Sprint phones because Sprint is the only carrier, to date, that has installed the chip.

To use Google Wallet a consumer simply walks up to the register with their purchase and taps their phone on a payment terminal. The payment information is automatically transferred. Pretty nifty, assuming the merchant has installed the necessary payment terminal. In a way, it's like an automated toll road, where your EZ-Pass transponder pays the tolls as you pass checkpoints while other drivers sit stewing long lines at the toll booths.

The cloud-based wallets store all your data in the cloud, meaning they might work on many different mobile phones. But there are a few more steps in the payment process.

“If you're using one of the cloud-based applications you'll go to the register and click your phone to make the payment.,” Gerstner said. “You might enter a PIN to get into the application securely.”

QR codes

At that point a QR code pops up on your phone. A scanner at the register reads it and loads your payment information. It's simple, and can be even simpler.

“Square is doing something interesting where in certain cases you just walk into the store and your phone talks to the register and when you get to the register all you have to do is say your name and your payment information pops up,” Gerstner said. “The payment then goes through after you confirm it.”

Despite the possibility that your smartphone security could be compromised by downloading malware – and that happens more than you think these days – a mobile wallet might be more secure than your old fashioned one. After all, if you lose your wallet, you must contact each credit card company individually to cancel the cards. With a mobile wallet, assuming you have set up the ability to remotely disable your phone, you simply wipe the information if the phone is lost or stolen. 

Warp speed?

Consumer technology tends to move at warp speed – think about where mobile phones were five years ago – so we could all soon be buying stuff with our phones, allowing men to get rid of that bulge in their hip pocket. However, for now the obstacles are still there.

“We're not there yet, the space is very fragmented,” Gerstner said. “For example, to use Google Wallet you must have a Sprint phone. And when you go to use it, only certain stores accept Google Wallet.”

In fact, Forbes Magazine reported last month that “Google Wallet isn't happening anytime soon” and that retailers shouldn't count on it in their plans for 2013, and maybe not even 2014. Should they ever? Maybe, but even Gerstner isn't sure.

“People are still pretty happy with their old fashioned wallets,” she said. “Most people don't have a problem with pulling out a card and swiping it.”

Right now you probably carry your credit cards in a wallet. In the future, will you carry them in a smart phone?You might. A few early adopters are givin...

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White House backs cellphone 'unlocking'

President Obama thinks you should be able to use your cellphone on any carrier's network. This sounds pretty simple and straightforward but it has huge implications for consumers and cellphone carriers.

It wasn't, after all, all that long ago that the only device you could hook up to your telephone line was one the telephone company installed and maintained.

It seems hard to believe now but back in, say, 1975, you couldn't just go to Office Depot, buy a fax machine and plug it into your phone line. In fact, there weren't any fax machines to speak of.

The wireless carriers -- Verizon, AT&T, Sprint, etc. -- have been lobbying heavily against any change that breaks their stranglehold on the smartphones, tablets and other devices that run on today's cell networks. They note that their phones can now be unlocked under certain circumstances, although critics say the process is unwieldy. 

Freedom now

What's perhaps truly amazing is that the Obama Administration's change of heart is at least partly in response to a "Make Unlocking Cell Phones Legal" petition drive that gathered more than 114,300 digital signatures.

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The drive was organized after the Library of Congress, which has authority over certain copyright issues, banned the practice of "cracking" cellphones and switching them to another network. The cellphone companies had argued that the practice violated copyright restrictions on their software and the Library of Congress agreed.

But the hackers who would like to have control of their property -- to wit, their phones -- took it to the street, their petition drive being the shot heard 'round the world by those who think consumers should be able to use their devices on any network and with any software they choose.

This is also an issue that is bubbling along beneath the surface in the laptop, tablet and desktop world. Certain manufacturers have been making it difficult bordering on impossible to run their computers on anything but Windows. Apple, of course, has always been a proprietary system.

But a large and growing number of gearheads, artists, creative types and entrepreneurs prefer to run Linux-based Open Source software, not so much because it is freely shared but because, well, it just runs better, is more secure and can be easily customized.

Sugar Daddy phones

There is, however, one big hitch in the Open Source movement when it comes to cell phones -- namely, money.

Consumers rate AT&T Wireless

When you walk into a Verizon, AT&T or Sprint store and plop down $200 for a new smartphone, you're also signing a two- or three-year contract to buy wireless service, in exchange for which the carrier steeply discounts the purchase price.

That $200 HTC, Samsung or Motorola that's buzzing happily in your pocket? It costs $500 or $600 without a service contract.

Freedom, as they say, is not free.

In theory, of course, if you buy your own phone outright, you should be able to sign up for wireless service at a discounted rate so that over time, you would pay about the same total amount over a two- or three-year period, maybe even a bit less.

In time, market forces will probably make that happen, especially as a more open marketplace encourages new carriers to get into the game. After all, if a carrier didn't have to have a nationwide network of stores to sell devices and didn't have to spend millions on inventory, advertising and marketing, it would be a much simpler business.

None of this will happen tomorrow, of course. Obama can't press a magic button that releases everyone from their cellphone contract and in its statement, the White House noted that consumers should honor their existing contracts but made clear which side of the fence it's landing on. 

Common sense

"Consumers should be able to unlock their cellphones without risking criminal or other penalties," said R. David Edelman, an Obama administration adviser on Internet and privacy issues. He said it's just plain "common sense" and "crucial for protecting consumer choice."

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While nothing concrete will happen immediately, by throwing its weight behind unlocking cell phones, the White House is starting the process of changing public policy. It's always a messy process but it does enable lobbyists to put their children through colleges and it keeps the Audi and Lexus dealers in business, so there must be something good about it.

Sometimes it's seemingly abstract issues like this that wind up being what a presidency is remembered for.

Jimmy Carter deregulated the airlines. AT&T was broken up on Ronald Reagan's watch. Bill Clinton made it easier to get a mortgage. Oops, maybe we'd better stop there.  

President Obama thinks you should be able to use your cellphone on any carrier's network. This sounds pretty simple and straightforward but it has huge imp...

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Smartphones are becoming more important health tools

The smartphone is not just a trend in technology. Over the last couple of years it has become an emerging trend in healthcare.

For example, there are apps to help you lose or control weight. The Eatery app allows users to take pictures of each meal and provides feedback in terms of how those meals are contributing to overall weight gain or loss. 

The app also lets you know what specific foods are blocking ou from reaching your dietary goal and points out the times of day that seem to challenge you the most when it comes to eating better.

In January we reported on a new smartphone app called UMSkinCheck, one of several apps that claim to be adept at identifying dangerous skin conditions. The smartphone app was created by the University of Michigan’s Health System and it lets users snap photos of a mole or lesion that could be cancer or could become cancerous over time. 

The National Cancer Institute (NCI), part of the National Institutes of Health (NIH), is leading an initiative to help teens quit smoking through the use of a smartphone app. Developed by smoking cessation experts, SmokefreeTXT is a free text message cessation service that provides 24/7 encouragement, advice, and tips to teens trying to quit smoking. 

Like an electronic diary

“Smart phones are a great way for people to track how their daily activities impact their health,” said Aaron Michelfelder, MD, a physician at Loyola University Health System and professor in the Department of Family Medicine at Loyola University Chicago Stritch School of Medicine. “They give patients instant access to the effects their habits have on daily living, and they are better able to make connections between what they do and how they feel.”

Some health apps are more useful than others. In Michelfelder's book, the most beneficial apps are for people needing to monitor blood sugar and blood pressure, mood tracking and asthma as well as fitness and nutrition.

“People who are detailed and willing to truly keep track of their data find them the most beneficial,” Michelfelder said. “It’s great that they can see right away I had such and such for dinner and this is how it impacted my blood sugar.”

Aiding doctors

These apps don't just help consumers. Michelfelder says they can also help the consumers' physicians to better treat their patients, providing a more well-rounded view of their health. He says he's actually benefited from that.

“I love when my patients bring their smart phone to a visit and show me their data or even email me in advance,” Michelfelder said. “This real-time data helps me better analyze a patient’s health than just the information I get from an office visit. This way instead of maybe having two blood pressure readings, I’ll have 25. This allows me to have a more in-depth conversation with the patient about where to go next.”

Some health researchers have raised concerns that consumers will put too much faith in their health apps and might overlook real health problems. Michelfelder says that's a legitimate concern. There can be other issues too.

Security issues

For example, the apps might not be compliant with the Health Information Privacy and Accountability Act that protects patients’ health information.

“This is especially true for apps that allow you to email your medical information,” he said.

Michelfelder says patients should carefully read an app’s terms and agreements to ensure a copy of the email is not being sent to the company and that personal medical information is not being stored in an unsecure location. Also, make sure the medical apps are password protected.

As for reliability, Michelfelder agrees that patients should never use apps for self-diagnosis. One the the biggest benefits, he says, is getting young people – who tend to be more tech-savvy, to take an active interest in health issues.

The smartphone is not just a trend in technology. Over the last couple of years it has become an emerging trend in healthcare.For example, there are apps...

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Blackberry unveils new operating system and new phones

The Blackberry phone was once the first choice of business and professional users and maybe it will be again someday, although it's a little hard to see how.

Blackberry's maker, Research in Motion, today lunched -- or at least revealed -- its new mobile operating system, BlackBerry 10, BB10 for short, and two new smartphones.

Having not learned from the political world to keep it simple, the company also announced it's changing its name from Research In Motion to -- what else? -- Blackberry.

New phones ... soon

Oh, and also it introduced two new phones -- the BlackBerry Z10 and BlackBerry Q10 -- but then said they won't be available in the United States until March or so. You can get them in Canada and the U.K. now, if it means that much to you.

"This is one of the biggest launches in our industry and today is not the finish line, it's the starting line," said CEO Thorsten Heins. Well, actually it's sort of the approach to the starting line, which will be sometime in March.

And why should anyone wade through all this? What's the big selling point that will bring us all running to the nearest cell phone store?

Well, it's a feature called Balance. RIM says it's geared towards  professionals who use their devices for personal use and work. Now, by using swipe gestures to switch between "work" and "personal" profiles. RIM says that businesses can keep data secure without forcing employees to carry two mobile devices.

Then there's BlackBerry Flow. This allows users to move among apps by using swipe gestures instead of a home button.

Heins also announced that singer Alicia Keys has been named the company's new Global Creative Director. He said Keys has been in a "long-term relationship" with the BlackBerry. 

And as for those new phones, the BlackBerry Z10 is a touchscreen device running on BB10 with a 4.2-inch 1,280 x 768 touchscreen display and front- and rear-facing cameras. With no physical keyboad, it's Blackberry's answer to the iPhone and the many Android big-screen phones.

The BlackBerry Q10 will, in the mode of older BB phones, keep a full QWERTY keyboard.

Both can run 4G LTE and U.S. carriers AT&T, Verizon, Sprint, and T-Mobile all say they will be announcing their pre-registration and price plans today.

The Z10 -- the one without a keyboard -- will cost around $199 with a two-year contract when it becomes available in March.

The Q10? No dates or prices were provided.

The Blackberry phone was once the first choice of business and professional users and maybe it will be again someday, although it's a little hard to see ho...

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Feeling low on energy? A new app claims it can help

Why does it seem that many of us struggle with our energy levels, even though we claim to get enough rest, eat the right foods and get enough exercise?

Some may say today’s individual is busier than ever, and with jobs becoming more complex, forcing people to work longer hours and newly created devices making it easier to bring work home, getting any downtime or just having time to do absolutely nothing seems harder and harder to do these days.

And what course of action do a lot of consumers take to get their energy back? 

To answer that question, just take a look at your neighborhood grocery store or pop into your local corner market and you’ll see just how many energy drinks there are on the market.

From 5-hour Energy, to Red Bull, from Monster Energy to Rockstar Energy Drink, the shelves are full of products claiming to boost our energy level.

Track your energy level

Well, a new app created by the company Mindbloom sets out to change that approach, through its new mobile device app called JUICE, that allows people to track their energy level and get tips on how to increase their energy naturally.

JUICE “takes a fun, simple approach to helping the average person become aware of the daily habits that zap their energy, while serving up relevant suggestions and resources from top-tier experts on ways to improve those behaviors,” says Chris Hewett, founder of the tech health company Mindbloom, in an interview with ConsumerAffairs.

“JUICE is not an app for the ultra-marathoner, it’s an app for the average person who lacks energy but doesn’t know why and doesn’t have the time to begin to learn how to address the issue. With JUICE, users can quickly and easily record and reflect on their daily behaviors in the areas of nutrition, sleep, exercise, mood, life balance and stress and track them against their daily energy level,” he said.

What’s also cool about the app, says Hewett, is that it’s fun to use, and instead of the app having a boring and scientific approach to gathering the needed information from you, it actually comes across like a game that will hopefully keep people permanently engaged.

“The application uses playful interaction to make the experience fun, such as offering a lighthearted visual sliding scale to rate that day’s nutrition behaviors from ‘awful’ (pizza, beer and a cupcake) to ‘great’ (salmon, vegetables and a glass of water)," says Hewett.

After the seven days, JUICE gives an energy report that sums up all of the information users gave during the seven-day period, then the app gives advice on the things you need to change, so you can maintain a proper energy level.

Customized tips

And the app doesn’t provide general input either, says Hewett, it actually gives customized tips that are tailored for your specific circumstance. 

 “JUICE users also receive daily tips from Mindbloom’s partner network of highly respected health experts and authors,” says Hewett. “The tips are personalized and relevant based on the users input, and are designed to encourage users to improve choices and behaviors that are problematic.”

Hewett also said that user feedback for the app has been encouraging.

"We launched the app just over two months ago and already have 70,000 downloads. Overall people have been ranking their energy as ‘ok’ across the board, so we’d like to see that go up and believe our expert tips have already started to make an impact, especially with people who are connecting expert tips with their New Year’s resolutions.”

And with the large number of downloads so far, Hewett says he can't wait to see what the app goes from here.

“Nutrition and exercise have been the lowest ranked areas so far, although we also saw improvement in January over December. It’s amazing to see the app making an impact on people’s lives so early after launch and we can’t wait to see even more results,” he says.

Negative behavior

See, many of us want to feel better during our daily routine, but don’t know how to go about it. Also, when we do decide to do something, we may work on only fixing one area that needs improving, like going to bed a little earlier.

And of course, correcting any negative behavior is great, but to make a complete change for the better and have an increased energy level, you’ll have to fix all of your problem areas , which is exactly what the app does,” says Hewett.

“Most people don’t even realize that certain energy-zapping behaviors are taking place as often as they are,” he said.

“Often you need a mental map to know where you’re going or recognize that you’re lost. Tracking allows you to see how behaviors are impacting other areas of your life. With JUICE, people get an easy navigational tool for checking in with themselves when energy levels are an issue and they get to see a map of their habits in a fun and non-invasive way.”

“It’s a wonderful opportunity to identify areas where potential small steps could make a huge difference in enabling positive behaviors that lead to more energy. Used effectively, JUICE is the perfect gateway app to better health, well-being and happiness,” says Hewett.

He also says that simply grabbing an energy drink is nothing but a temporary fix.

“While an afternoon energy drink or caffeine-loaded beverage might be part of someone’s daily repertoire to boost their energy, it’s a Band-Aid fix that doesn’t address why that person might be in the midst of an energy crisis brought on by potential unhealthy behaviors."

"With JUICE, people get to the bottom of identifying what is zapping their energy so they can start taking actions to get their natural energy to an optimal level.”

Hewett says what also sets JUICE apart from other health apps are the tips you get from experts to help keep your energy level up.

“The integration of top industry experts is important,” he says.

Juice can be downloaded for free in Apple’s iTunes store.

Why does it seem that many of us struggle with our energy levels, even though we claim to get enough rest, eat the right foods and get enough exercise?So...

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AT&T devours Alltel

AT&T is buying Alltel's wireless operations for $780 million in cash, saying the deal will improve its coverage in rural areas.

Under terms of the agreement, AT&T will acquire wireless properties, including licenses, network assets, retail stores and approximately 585,000 subscribers from Alltel's parent company, Atlantic Tele-Network.

Alltel's network covers about 4.6 million people in mainly rural areas across six states — Georgia, Idaho, Illinois, North Carolina, Ohio, and South Carolina.

Consumers rate AT&T Wireless

Federal regulators are expected to review and approve the deal, the companies said Tuesday. The companies predict the deal will close in the second half of the year.

AT&T said the deal includes spectrum in the 700 MHz, 850 MHz and 1900 MHz bands and is largely complementary to AT&T’s existing network. ATNI currently operates a retail CDMA network for its subscribers in these areas. AT&T said the acquisition means that Alltel customers and AT&T customers who roam in these areas will "enjoy an enhanced mobile Internet experience."

American telecommunications giant AT&T has signed an agreement with Atlantic Tele-Network to acquire its retail wireless operations, which currently op...

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The Eatery: An easy-to-use diet app

Taking a picture of your food before you eat is extremely commonplace nowadays, as capturing a meal before diving into it has become a daily ritual for many. Some say all of this food sharing is entertaining and others say meals should be eaten not photo’d.

Some take these pictures so they can share the joyous occasion of eating a yummy plate of food with a fellow foodie, and others play Gordon Parks with their meal to document the moment, so it can be experienced in the future--at least visually.

But a good number of people today snap pictures of their meals for other reasons, and they use a variety of apps to help them either lose weight, control bad eating habits or get a better idea of what things they need to change in order to eat healthier.

Take the “The Eatery” app for example, that allows users to take pictures of each meal and provides feedback in terms of how those meals are contributing to overall weight gain or loss.

The app also lets you know what specific foods aren’t allowing you to reach your dietary goal and points out the times of day that seem to challenge you the most when it comes to eating better.

Picks out patterns

The creators of The Eatery say the app differs from others that people use today, because it focuses less on the calories and measurements and instead uses photos to point out bad dietary patterns that you might not  realize you have.

Apparently, the best way to reach consumers is through their mobile device these days, so there’s no surprise that dieting has gone digital just like everything else. It makes one wonder how people were inspired to eat healthier before these apps and healthy living websites came along.

Was it the random highway billboard that reminded us to put down that greasy burger before apps took over? Was it the sporadic TV commercial or public service announcement that we came across that nagged us to eat better? Or maybe our spouses or significant others nagging us?

It seems with all of the new research findings, health warnings and  suggestions coming via the Internet these days, using your mobile device for dieting will soon be just as conventional as using a piece of exercise equipment or a personal trainer.

And Massive Health—the company that created The Eatery app—says providing people with deeper insight into themselves, as well as their eating habits, will allow folks to have a better chance of modifying unwanted food behaviors.

Since we’re now living in a digital society that counts heavily on visual stimulation through handheld electronics, using photos as both inspiration and a perpetual reminder to alter bad food patterns makes extremely good sense.

Just snap a pic

To use The Eatery, users just snap a picture of each meal—which many people do anyways—and rate it whether it's “fit or fat.” The app will then give you guidance on where to make changes, and also give feedback about the time of day you choose to eat bad foods.

Massive Health says it uses crowd-source feedback from people chosen by the company, to help you along your dietary journey, so you’re not just guessing about what to tweak in your meal regimen.

And by users being able to see all of their meals, snacks and beverages in one place, it’ll be much easier to see problem areas or negative patterns, like being able to see how many slices of bread you've eaten in a given week or how many sugar-loaded cups of coffee you had in two months’ time.

And just like every other company and brand these days, The Eatery uses Facebook to include the obligatory social network component to help keep users motivated.

The logic here is that by allowing your friends and followers to see everything you’re eating--while they’re also being advised of what you’re trying to accomplish--you’ll be provided with more motivation that could go a long way in getting you to your goal.

Also, if users know their followers will see everything they’re eating, maybe they’ll be more mindful of eating better, if for no other reason than sheer embarrassment -- not wanting to appear like an undisciplined glutton who only likes the unhealthy stuff.

The company also says that being able to see everything you consumed over a long period of time, like in a course of several months let’s say, you’ll be able to see your progress and also be able to view any transgressions.

“Studies show that simply recording your meals helps you lose more weight,” says Massive Health on its site for the app. “It’s not about counting calories, it’s about becoming aware of your habits.”

It’s apparent that Massive Health also feels that by being able to record all of your meals over a course of time, you will naturally draw useful conclusions about why you eat certain foods, and why you choose to eat them at certain times.

Probably the most challenging thing about using The Eatery app is having to take a photo of everything you eat.

For those who aren’t accustomed to this, taking all of those photos could get annoying, but for those who happen to be unpaid food journalists already, this app may be right up your alley.

Taking a picture of your food before you eat is extremely commonplace nowadays, as capturing a meal before diving into it has become a daily ritual for man...

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Apple's lost its mojo, but should you care?

Over the last few weeks Wall Street has been wringing its hands over Apple. The once high-flying stock has returned to earth, down 25 percent from its peak.

The word on the Street is Apple has lost it's mojo. Once a company that could seemingly do no wrong, it has lately seemed to be, well, ordinary.

When the late Steve Jobs was running the company and serving as its driving creative force, Apple was more than a brand, it was a lifestyle, a new approach to modern consumer technology.

It started with the iPod, a portable music player making it easier for consumers to always have their music collection with them, accessible at the touch of a button.

Revolutionizing smartphones

Consumers rate Apple iPhone

In 2007 Apple revolutionized smartphones with the introduction of the iPhone. It quickly displaced the reigning smartphone, the Blackberry, which was designed for business customers who valued its robust encryption and instant access to email.

But Jobs and Apple figured out consumers wanted in on smartphones too, but were more interested in applications giving them access to games and the Internet.

By 2010 Apple again turned the mobile world on its ear with the introduction of the iPad, a sleek tablet computer that did just about everything the iPhone did except make telephone calls.

Last summer a California jury awarded Apple more than $1 billion in its patent infringement suit against Samsung, its main competitor from the Android side of the smartphone world. Apple appeared to be on a roll, but oddly enough that seems to be the time when things started to slide.

Fighting back with satire

Instead of being cowed by the verdict, Samsung appealed and kept turning out products. It introduced several new smartphone models in the time Apple introduced one, and made fun of its competitor with the ad below.

Being the target of Samsung satire notwithstanding, should Apple users care that the company appears to be losing marketshare to its Android and Windows competitors? Does that, in any way, diminish the products the company produces? Let's ask consumers about their recent experiences.

What customers say

"Up to this point, I have been a long, loyal, and valued apple customer," writes Mark, of St. Paul, Minn., in a ConsumerAffairs post.

Mark said he's been an Apple customer since 1987, purchasing the company's desktop computers, Powerbooks, iPods, three iPhone 4s', and an iPad 2. Mark said the problems began when his family upgraded their phones.

"All three of us have had issues with accessing/losing voicemails; many crashes on safari, contacts, and calendars resulting in lost data; battery requires frequent charging (2-3 times daily)," Mark wrote. "My family is beginning to question whether Apple products are right for us. We certainly do not want to act as Beta testers for their products."

Mark isn't alone. Some consumers, like David, of Las Vegas, Nev., seem to have a case of buyer's remorse.

"I lost my Blackberry Storm when it dropped into a huge materials shredder when it fell out of its holster," David posted at ConsumerAffairs. "This iPhone does not measure up to my antiquated 3g Blackberry, which is not available any longer . This truly is not advancement of engineering but in this current state of the world, not much is."

Two perspectives

But to be fair, Apple still has legions of loyal customers and Wall Street's perspective and consumers' view are not the same. The problem for Wall Street is that Apple's once-dominant position in the industry is threatened.

Samsung produces great products and more of them than Apple does. While Apple virtually invented the tablet, it resisted the smaller versions of the device until its competitors were well ensconced in that space.

All of this has caused investors to recalculate their assumptions about Apple, hence the falling stock price. But Apple still makes great products and whether one brand is better than the other is mostly a matter of opinion.

For consumers, the overriding question is which product provides what they want and at what price. That's the way it's always been. The fact that Apple may now be just another product troubles Wall Street but consumers probably shouldn't care.

Over the last few weeks Wall Street has been wringing its hands over Apple. The once high-flying stock has returned to earth, down 25 percent from it's pea...

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Some apps to help you with that New Year's resolution

This year, my New Year’s resolution is to not make any New Year’s resolutions, because most times they’re never kept and by the time February or March rolls around you’ve already forgotten what you wanted to change about yourself.

But for those who are brave enough to take on a resolution this New Year’s, you may want to get  a little extra help by way of a mobile device app, which could definitely make it easier for you while you’re on your quest for self-improvement.

Saving money is usually among the most popular New Year’s resolutions for consumers, so to help, the Account Tracker app lets you keep track of all your different bank accounts, including your credit cards.

It also lets you keep a close eye on your daily spending habits, including those costs attached to vices like smoking, eating fast food or buying alcohol, which many people are trying to give up this coming New Year.

The idea behind this app is to give people a direct incentive to budget and let go of certain spending habits that have kept them from reaching financial goals in the past, and sometimes being able to have a visual reference that shows all of your purchases will keep you from buying a bunch of frivolous items, since you’ll be documenting those purchases and seeing exactly where your money is going.

The Account Tracker differs from just being able to look up your bank account information on your smartphone, as it pulls all of your financial data into one digital location regardless of the type of account, the financial institution or the type of credit card you use.

The app also sends users certain alerts, like when bills are due or when you’re account is overdrawn, and it even generates a financial report so you can store all of your past transactions and compare how well you’ve been saving.

It also lets you set financial goals, so while you’re entering your daily transactions into the app, you’ll also be able to see just how close or far you are from reaching your desired target.

Account Tracker is available free in the Apple Apps Store.

Fitness goals

And for those looking to increase their fitness in 2013, the Workout Trainer app allows users to access personal trainers on their mobile device and each trainer teaches a wide array of exercise routines, while giving you instruction on how to maximize a particular workout.

The app is good for those folks who want to start or continue an exercise regimen, whether it’s weight training, aerobics, calisthenics or whatever.

The Workout Trainer also lets you sync your favorite music to workouts, so as you’re being instructed by a professional fitness expert, you can stay motivated by your own play list, while also receiving additional motivation from the virtual trainers.

Another cool feature on the app is its ability to let you edit the workouts, just in case you would rather focus on a specific part of the exercise instead of going through the entire routine, and you can even have a virtual consultation with one of the exercise instructors so specific workouts can be shaped around a specific goal.

The Workout Trainer is for Android devices and can be downloaded in the Google Play store.

Quit ... for good

Another Android application that’s perfect for New Year’s resolutions is Quit, which is an app designed for smokers looking to break their cigarette habits once and for all.

The makers of the app say it uses statistical data from other users who quit and carves out a specific plan around your smoking habits.

The app also asks a series of questions to users to determine just how heavy their addiction to nicotine is and it tracks the amount of cigarettes you decided not to smoke.

It also tallies the amount of money you’re saving from not purchasing cigarettes and tells you how many years you’ve added to your life by avoided each cig, which can only serve as good motivation.

In addition, the Quit app sends useful information like the chemicals you’re avoiding by not smoking, and it also sends you motivational statements that are supposed to remind you of why you decided to quit in the first place.

Users will also receive what the makers call an achievement list that you’re supposed to unlock one by one each time you pass a certain mark during the process.

Just like the Workout Trainer, the Quit app can be downloaded in the Google Play store.

Promise yourself

Let’s face it, New Year’s resolutions are as hard to keep as any other personal challenge we set in front of ourselves, because many times it’s much easier to keep a promise to another person than it is to keep a promise to ourselves.

And obviously, there’s no guarantee that any of these apps will get you over that resolution hump, but they should provide some assistance while you're  journeying towards an improved you, especially since the help is right at your fingertips on your mobile device or smartphone. 

This year, my New Year’s resolution is to not make any New Year’s resolutions, because most times they’re never kept and by the time Febr...

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Warning: SpamSoldier is invading Android devices

The mobile world continues to become more vulnerable to malware with a newly discovered SMS spamming botnet called SpamSoldier causing concern.

It reportedly infects users of Android phones to send out a stream of spam in the form of text messages, much like some PCs become "zombie" computers in the service of spammers.

Victims are lured in with text messages that tell them they have won a $1,000 gift card at Target, but must enter a code at a special site. When they go to the site they download the malware.

Clicking will be costly

“Before you click on a link that is texted to you, understand it’s probably going to cost you,” said Washington State Attorney General Rob McKenna. “That text that appears to come from a reputable retailer is usually a trick to take your money, install a virus, or both.”

SpamSoldier is also spreading through messages that advertise free versions of popular paid games like Angry Birds Space. It is also found on disreputable, third-party app stores. Once it’s infiltrated an Android handset, it uses the subscriber’s allotment of text messages to send out more spam messages.

Someone who clicks on the link might actually receive a free game. But she will also install an application that in coordination with a kind of mother ship -- a server somewhere in cyberspace -- seeks to reproduce itself.

Difficult to detect

McKenna says detecting SpamSoldier can be difficult because the app is programmed to intercept responses to its texts before consumers see them. Still, those who pay by the text or have a limited number per month will eventually notice the activity.

There are ways to avoid SpamSoldier and other malicious apps. They include:

  • Only download apps from reputable vendors such as the app store pre-installed on your phone.
  • Do not download apps from a vendor who sends you a text.
  • Don’t fall for texts saying you’ve won something.
  • Regularly check your bill with an eye for texts you do not remember sending or for charges you did not authorize.
  • Check your smartphone’s security by visiting the FCC’s Smartphone Security Checker.

The mobile world continues to become more vulnerable to malware with a newly discovered SMS spamming botnet called SpamSoldier causing concern.It reporte...

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Smartphones can be a serious security risk

According to the Federal Communications Commission (FCC), smartphones robberies are  rising steadily.

In New York City, for example, 40 percent of all robberies involve smartphones or cell phones, and in Washington D.C., smartphone robberies were up by 54 percent compared to 2011, says the government agency.

And it’s not only in the big cities that smartphone crimes are increasing, as 30 to 40 percent of all robberies throughout the country involved the pricey electronic gadgets, and unless consumers really start applying a good old-fashioned dose of vigilance, the number of smartphone thefts will only continue to increase in the years to come.

To help prevent this from happening, the FCC has released what it calls the “Smartphone Security Checker”--an outline that smartphone users can follow to make sure their personal information is kept secure if their device is ever stolen or hacked into.

The ten-point check system serves as both a guideline and a reminder for consumers to follow and each suggestion seems to be made up of common-sense reminders and security tips that are pretty obvious but may have eluded some users along the way.

Watch those apps

One example--be wary about changing the security settings on your phone once it’s purchased, as altering the default settings may dramatically diminish the phone's ability to block hackers and secure your personal data.

The FCC also suggests you be extremely leery of the apps you choose to download, and to make sure you’re getting apps from a trusted source.

Since there seems to be an application for just about everything these days, consumers can easily download something that’s harmful to their phone out of sheer habit or choose to blindly trust a certain app just because it has a lot of uses.

The security checklist also warns consumers to check the reviews of an app to see if it really works as promised before downloading it, and people should do a bit of research on the store that the app comes from, just to make sure it’s a legitimate source.

It’s also imperative that consumers know how an app works before giving it permission to carry out different functions on your smartphone and users should also familiarize the privacy settings on each app before using it, says the FCC.

Post-theft protection

An app that’s really smart for consumers to download is one that allows you to erase your personal data after your phone has been lost or stolen, which some phones are equipped with upon purchase.

The FCC says these security apps are extremely important for each smartphone user to have because it also allows them to remove stored data, even if the GPS tracker is turned off.

The government agency also says to be particularly careful when using Wi-Fi networks that are open to the public, and in actuality, consumers should really limit their use of these places in exchange for using Wi-Fi services that are from a known network.

Also, many consumers don’t take the same security precautions that they do with their laptops and home computers, although smartphones are used more frequently these days and have a bigger potential to become lost or stolen.

PINs

For this very reason, setting passwords and PINs is essential as the phone's home screen is truly the protective shield of the device--and if the right security measures are put in place, a thief will have a much harder time cracking into your personal information and using it for God knows what.

And we all know those little pop-up reminders that tell us to update our phone’s software can be annoying, but the FCC says these updates can better help your phone block out hackers and those questionable sources that may use malware to steal your info.

Some smartphones are equipped to automatically remind you of these software updates while others have to be enabled, but either way these updates at least try to keep up with the new ways that people are able to steal your information.

All things considered, the checkpoint system put together by the FCC is a useful one, and consumers will probably be reminded of some measure they’ve heard in the past, combined with new ideas to keep their data safe, because it will take a consistent level of proactivity to make sure a hacker or smartphone thief isn’t walking away with all of your stored information.

Because if that happens, a heap of potentially serious problems can develop that can be really hard to remedy, and nobody wants that.

According to the Federal Communications Commission (FCC), smartphones robberies are on the steady incline.In New York City, for example, 40 percent of al...

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News just gets worse for Apple

At the start of the year Apple was most likely the hottest company on the planet. Consumers lined up for the chance to buy its products. And its $1 billion dollar judgment against its closest rival, Samsung, only brightened its outlook.

But lately things haven't been going that well for Apple. The latest blow came in court, the same place it achieved his historic victory over Samsung. A judge ruled on Apple's request to ban the sale of a number of Samsung smartphones and the answer was "no."

Last summer a federal court jury in California found that Samsung had infringed on a number of Apple design patents in the development of some smartphones and tablets. After the $1 billion jury award, Apple returned to court asking that Samsung products that had been found to violate Apple's patents be removed from the marketplace.

The evidence

"Apple's evidence does not establish that any of Apple's three design patents covers a particular feature that actually drives consumer demand," the judge in the case wrote. "The Court further found that though there was some evidence of loss of market share, Apple had not established that Samsung's infringement of Apple's design patents caused that loss."

In September, when Apple introduced the iPhone 5 and the latest mobile operating system, iOS 6, it suffered a major embarrassment when its maps function proved not ready for prime time. The company had jettisoned the Google Maps feature, saying its new Apple Maps would be far superior.

Consumers, however, complained of distorted and missing images and information that was not always accurate. As a result, Google last week issued a new maps app for the iPhone.

Tough three months on Wall Street

But perhaps most disturbing to Apple and its investors has been the company's stock performance in the current quarter. Apple shares began 2012 at $411 and hit $705 on September 21 -- a 71 percent gain in less than nine months.

But since then Apple shares have tumbled, hitting a 2012 low of $501 a share in Monday's trading. While it is still up from the start of the year, its losses from its high are significant.

As Apple's stock price fell, several analysts lowered their price targets, which seemed to lead to even more selling. While Apple remains a dynamic company and a consumer technology leader, analysts seem to be tempering their views of the company, suggesting it's mortal after all.

At the start of the year Apple was most likely the hottest company on the planet. Consumers lined up for the chance to buy its products. And its $1 billion...

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Sprint reaches deal to buy the rest of Clearwire

It was just two months ago that Japanese giant Softbank bought 70% of Sprint for $20 billion, injecting much-needed financial muscle into the third-place wireless carrier.

Now Sprint is shelling out $2.2 billion to buy the rest of Clearwire Corp., a deal that would greatly expand its wireless spectrum and help it to compete more effectively with market leaders Verizon and AT&T.

Regulators must approve the purchase.

"Today's transaction marks yet another significant step in Sprint’s improved competitive position and ability to offer customers better products, more choices and better services," said Sprint CEO Dan Hesse.

Sprint already owned 51% of Clearwire and the buy-out was widely anticipated following the Softbank deal.

It's the latest development in a fast-changing wireless market.  T-Mobile and MetroPCS announced plans to merge earlier and Dish Network has won preliminary FCC approval to enter the wireless market.

It will take a few years for the reconfigured players to get their new networks up and running but by 2016 or so, there should be five big, powerful wireless companies fighting for consumers instead of two dominant carriers and a handful of struggling second-string entrants.

It was just two months ago that Japanese giant Softbank bought 70% of Sprint for $20 billion, injecting much-needed financial muscle into the third-place w...

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Google Maps back on iPhone

Three months after a rare Apple misstep exposed a glaring glitch in its maps app, Google has ridden to the rescue. Google has just released Google Maps for iPhone, allowing iPhone users to more easily get where they are going.

Back in September when Apple released the iPhone 5 and iOS6, the maps feature struck a sour note with otherwise devoted customers. Apple replaced Google Maps with its own version, called Apple Maps, drawing instant complaints.

It wasn't just that Apple wanted to cut the cord with Google, it said it wanted to provide an improved "map experience." The maps in the app were supposed to be prettier, provide turn-by-turn directions, synced up with Siri, and give users the perspective of flying over the landscape.

Not ready for prime time

Consumers complained of a lack of accuracy and in some cases, distorted or missing images. Eventually, Apple CEO Tim Cook issued a rare apology and suggested users access Google Maps with their browser. Now, that's no longer necessary. Google says its maps app for the iPhone is available in the Apple App Store.

"The app shows more map on-screen and turns mobile mapping into one intuitive experience," Google said in a statement. "It’s a sharper looking, vector-based map that loads quickly and provides smooth tilting and rotating of 2D and 3D views. The search box at the top is a good place to start—perhaps by entering the name of a new and interesting restaurant. An expandable info sheet at the bottom shows the address, opening hours, ratings and reviews, images, directions and other information."

The company says its world map includes detailed information for more than 80 million businesses and points of interest. In addition to street view and photos of the insides of businesses, the map app offers a few new wrinkles.

New features

"To get you there, you’ve got voice-guided, turn-by-turn navigation, live traffic conditions to avoid the jams and if you want to use public transportation, find information for more than one million public transit stops," the Google statement said.

Apple announced back in May that it was dumping Google Maps from its updated mobile operating system. At the time it boasted of an "incredible" in-house maps app that was said to be much cleaner, faster and more reliable than the current version.

At the time, the move was views as evidence of a growing rift between Apple and Google, who own competing operating systems in the fast-growing mobile market.

Three months after a rare Apple misstep exposed a glaring glitch in its maps app, Google has ridden to the rescue. Google has just released Google Maps for...

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Distracted walking a growing hazard

States have cracked down on distracted driving, particularly people who send and receive text messages behind the wheel. But a new study suggests authorities may need to take a look at distracted walking.

An observational study published in the journal Injury Prevention found that nearly one in three pedestrians is distracted by their mobile phone or other electronic device while crossing busy intersections. Texting was judged most distracting but other non-electronic distractions were also noted.

The study was based on more than 1,000 pedestrian crossings at 20 business intersections in Seattle last summer. The intersections were monitored at different times during the day.

Children and pets also a distraction

The observers watched as pedestrians talked on their phones, sent and received texts or listened to music. They also observed pedestrians being distracted by conversations with other pedestrians and dealing with children or pets.

Nearly half of the observations were made in the morning rush-hour between 8 and 9 am, and just over half of those observed were between the ages of 25 and 44. Of the pedestrians monitored, about 80 percent were alone and obeyed the traffic signals, crossing at the designated point. But only 25 percent followed the full safety routine, including looking both ways before crossing.

What most concerned the researchers is nearly one in three of the 1102 pedestrians were doing something else when they crossed the road. Around one in 10 were listening to music, seven percent were texting and six percent were talking on the phone.

Taking longer to cross

And there was another concern. Those judged to be distracted took significantly longer to cross the road - 0.75 to 1.29 seconds longer. And while listening to music speeded up the time taken to cross the road, those doing it were less likely to look both ways before doing so.

Texting was judged the most risky behavior. The researchers said texters took almost two seconds longer to cross the average intersection of three to four lanes than those who weren't texting at the time.

And that's not all. Texters were also almost four times more likely to ignore lights, to cross at the middle of the street, or fail to look both ways before stepping off the curb.

Vehicle-pedestrian accidents injure 60,000 people and kill 4,000 every year in the U.S. Researchers say the casualties are likely to increase as smartphones become more widespread.

"Individuals may feel they have 'safer use' than others, view commuting as 'down time,' or have compulsive behaviors around mobile device use," write the authors.

The study suggests states should begin awareness programs about distracted walking, much like they did with drunk-driving in previous decades.

States have cracked down on distracted driving, particularly people who send and receive text messages behind the wheel. But a new study suggests authoriti...

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FCC approves Dish's entry into cell phone market

Americans just can't get enough smartphones. And the cell phone companies just can't get enough bandwidth to service all the smartphones they've sold. But Dish Network, the satellite TV provider, just may crack the market wide open, muscling in on Verizon, AT&T and Sprint.

The Federal Communications Commission (FCC) has given unanimous approval to Dish's plans to use some of its satellite spectrum to build a new cellular network, adding new capacity to the crowded airwaves.

"These actions will help meet skyrocketing consumer demand and promote private investment, innovation, and competition, while unlocking billions of dollars of value," FCC spokeswoman Tammy Sun said, as agency chairman Julius Genachowski testified on Capitol Hill.

In prepared remarks, Genachowski said the FCC is committed to taking final action that clears the way for Dish's entry into the lucrative market.

Ground-based

Although Dish will be using some of its satellite spectrum, the cell phone network will be ground-based, eliminating the time lag that makes satellite telephones balky because of the delay in relaying signals to and from the satellites.

“The FCC has removed outdated regulations and granted terrestrial flexibility ...  We appreciate the hard work and focus of the FCC and its staff throughout this process," said Jeff Blum, DISH senior vice president and deputy general counsel. "The Commission has taken an important step toward facilitating wireless competition and innovation, and fulfilling the goals of the National Broadband Plan."

The commission has been working to open up new spectrum space for smartphones and wireless broadband use. It is expected to auction a block of frequencies adjacent to Dish's existsing segment. Sprint Nextel is expected to be among the bidders.

Americans just can't get enough smartphones. And the cell phone companies just can't get enough bandwidth to service all the smartphones they've sold. But ...

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T-Mobile gets the iPhone, ends phone subsidies

T-Mobile is finally getting the iPhone, and it's shaking up the smartphone market by announciing that it will stop subsidizing the phones it sells to its customers. T-Mobile also announced network upgrades in several key markets.

Cell phone companies have traditionally built part of the cost of the phones they sell into the monthly fee customers pay on a two- or three-year contract. This makes the phone seem more affordable but raises the monthly bill.

Under T-Mobile's plan, customers can either pay full price for the phone upfront, which can be as much as $800 for an iPhone, or buy the phone on an installment plan with a down payment plus 20 month of interest-free payments.

So how is this different from subsidizing the phone purchase? T-Mobile says its monthly plans will cost less because they won't have the phone subsidy built in and that even customers who finance the phones over 20 months will have lower payments than those who get the same phone from AT&T or Verizon.

T-Mobile is calling this "Value Pricing" and other companies worldwide are adopting similar plans, although other U.S. carriers have been slow to do so.

T-Mobile has for quite some time offered service to customers who own their own phones. It was the first carrier to offer service when Google introduced its "unlocked" Nexus phones. 

The addition of the iPhone may fill a gap in T-Mobile's line-up. It has been the only major carrier not offering the popular phone. 

Network build-outs

T-Mobile also says it's sprucing up its network in time for the holidays.

Chief Technology Officer Neville Ray said new performance-enhancing technology has been installed in 10 additional metro areas, including Miami; Phoenix; San Francisco; Mesa and Tucson, Ariz.; Modesto, Oakland, San Jose and Stockton, Calif.; and Fort Lauderdale, Fla.

He said customers in those areas "will benefit from enhanced voice and data coverage, and faster speeds on unlocked devices to connect with friends and family."

The advancements will also boost the performance of unlocked AT&T smartphones in those areas, Ray said.

"Customers in these metro areas can also bring their unlocked AT&T smartphones to T-Mobile, and experience a significant speed boost on our 4G network, while also saving up to $50/month compared to AT&T,* he said.

T-Mobile has long offered service to AT&T customers who want to unlock their phones but data speeds are sometimes suffered because the companies use different frequencies in some areas.

T-Mobile is finally getting the iPhone, and it's shaking up the smartphone market by announciing that it will stop subsidizing the phones it sells to its c...

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Free app directs consumers to 'certified humane' stores

Want to make sure the food you prepare is not only humane, but "certified humane?" Humane Farm Animal Care (HFAC), a non-profit certification organization to improve the lives of farm animals in food production, has issued a free Certified Humane App, now available for iPhone and Android.

Shoppers who want to buy only at stores offering products that meet these standards can find the nearest one quickly, the group says.

"With over 7,000 supermarkets across the country selling products that are certified humane, consumers should be able to find products wherever they are," said Adele Douglass, HFAC Founder and CEO. "This tool connects consumers and businesses by providing consumers with what they have been asking us for, 'at- their- fingertips access' and rewards retailers who carry certified humane products with more business."

GPS driven

The app uses GPS to identify nearby retailers and displays them in an interactive map; the users can also search for specific locations as well.

In addition to finding mainstream supermarkets that sell certified humane products, users can also find farmers and ranchers that sell directly to consumers using the "BUY ONLINE" button. For restaurants and other food service providers who want to sell certified humane products, there is a filter option to find wholesale distributors.

To download the App, go to the App Store for iPhone or Google Play for Android, search for "certified humane," and then download and open.

Improving lives of farm animals

HFAC describes itself as an organization working to improve the lives of farm animals in food production. It says the certified humane designation assures consumers that meat, poultry, egg, or dairy products they purchase have been produced according to HFAC's standards for humane farm animal treatment.

That means animals must receive a nutritious diet without antibiotics or hormones and must be raised with shelter, resting areas and space sufficient to support natural behavior. Since the HFAC program was unveiled in May 2003, more than 90 companies, representing hundreds of farms and millions of farm animals, have been certified, the group says.

Want to make sure the food you prepare is not only humane, but "certified humane?" Humane Farm Animal Care (HFAC), a non-profit certification organization ...

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Georgia Tech: mobile browsers fail safety test

If you use online banking, your bank has probably encouraged you to sign up for mobile banking. Other financial services companies make it easy for customers to access they accounts with mobile devices.

But researchers at Georgia Tech say that when they conducted a test, even their cyber-security experts were unable to detect when their smartphone browsers had landed on potentially dangerous Websites. In other words, the site that was supposed to be a bank's Website sometimes wasn't.

Just like desktop systems, mobile browsers use a range of security tools to make mobile Web-browsing secure. However in one critical area that informs user decisions, Georgia Tech researchers found a glaring problem.

Strict guidelines for browsers

When it comes to the incorporation of tiny graphical indicators in a browser’s URL field, all of the leading mobile browsers fail to meet security guidelines recommended by the World Wide Web Consortium (W3C) for browser safety. Even expert users say they have no way to determine if the Websites they visit are real or imposter sites phishing for personal data.

“We found vulnerabilities in all 10 of the mobile browsers we tested, which together account for more than 90 percent of the mobile browsers in use today in the United States,” said Patrick Traynor, assistant professor in Georgia Tech’s School of Computer Science. “The basic question we asked was, ‘Does this browser provide enough information for even an information-security expert to determine security standing?’ With all 10 of the leading browsers on the market today, the answer was no.”

Graphic icons mean the site is secure

When desktop users visit a site where they will enter sensitive information, there are graphic icons and other indicators that the site is secure. The tiny “lock” icon that typically appears in a desktop browser window when users are providing payment information in an online transaction is one example of a security indicator. Another is the “https” keyword that appears in the beginning of a desktop browser’s URL field.

The W3C has issued specific recommendations for how these indicators should be built into a browser’s user interface, and for the most part, Traynor said, desktop browsers do a good job of following those recommendations. In mobile browsers, however, the guidelines are followed inconsistently at best and often not at all.

One problem is the smaller screen size. Sometimes there isn’t room to incorporate the indicators in same way as with desktop browsers. However, given that mobile devices are widely predicted to face more frequent attacks from cyber-criminals, the vulnerability is almost sure to lead to increased cyber-crime unless it is addressed, the researchers warn.

Best efforts fall short

Traynor said it appears mobile browser designers did the best they could, considering the constraints of the small screen.

“But the fact is that all of them ended up doing something just a little different -- and all inferior to desktop browsers," he said. "With a little coordination, we can do a better job and make mobile browsing a safer experience for all users.”

It's important, he says, because research has shown that mobile browser users are three times more likely to access phishing sites than users of desktop browsers.

If you use online banking your bank has probably encouraged you to sign up for mobile banking. Other financial services companies make it easy for customer...

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Court rules Verizon Wireless must offer data roaming services

A federal appeals court in Washington has unanimously ruled that major wireless network providers, like Verizon Wireless and AT&T, must work out roaming deals with smaller providers who lack data network capacity.

The loser in the case is Verizon Wireless, which had gone to court to challenge the Federal Communications Commission's (FCC) 2011 rule that required the major players to offer smaller competitors “commercially reasonable” terms for providing data services to their customers. Verizon claimed the FCC had overstepped its authority in making the rule. The court declared that it had not.

FCC Chairman Julius Genachowski said he was delighted with the decision, noting the court had confirmed the FCC's authority to protect broadband consumers. He wasn't the only one celebrating.

Smaller carriers applaud

“We are extremely delighted with the court’s decision,” said Steven Berry, CEO of the Competitive Carrier Association (CCA), a group that includes small cell providers. “The fact that the court made such a prompt and well-reasoned decision, at least in my mind, is a clear and convincing indication of the overwhelming strength of the intervener and FCC arguments presented to the court. The court’s unanimous and unequivocal support for the FCC’s action and authority bodes extremely well for the competitive issue of roaming and other competitive issues that CCA will continue to pursue.”

The ruling means that customers of small cell phone companies will have access to data services when they are “roaming,” and within range of a major provider's network. The larger providers, like Verizon, are required to provide the access but can charge a reasonable price for it.

“This is a decisive victory for consumers and an extremely positive outcome for competitive carriers and competitive policies,” Berry said.

Verizon's argument

Verizon Wireless argued that it should not be required to provide access to its network because that would reduce it to the status of a “common carrier.” Several small competitors had complained they were unable to provide roaming data service to their customers because Verizon refused to do business with them.

Genachowski said the FCC took the position it did because the agency is trying to make data services available to wider areas of the market. It's all part of a consumer-centered policy, he said.

“Our rules have empowered consumers and expanded their ability to enjoy the benefits of seamless and nationwide access to mobile data services, including wireless Internet and e-mail," Genachowski said in a statement. "Enacting data roaming rules is one of many strong actions the FCC has taken in this area, and we will continue to promote broadband investment and innovation."

Berry said the FCC ruling and the court decision upholding it is an important piece of the puzzle to ensure smaller players will be able to deploy 4G LTE services to consumers across the nation.

A federal appeals court in Washington has unanimously ruled that major wireless network providers, like Verizon Wireless and AT&T, must work out roamin...

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Do you suffer from cell phone addiction?

Modern life seems to keep extending the list of possible addictions. Besides old-fashioned addictions to alcohol and drugs, people are now addicted to sex and the Internet. Now a researcher at Baylor University is adding cell phone addiction to the list.

"Cell phones are a part of our consumer culture," said study author James Roberts, Ph.D., professor of marketing at Baylor's Hankamer School of Business. "They are not just a consumer tool, but are used as a status symbol. They're also eroding our personal relationships."

Roberts says cell phone and instant messaging addictions are driven by materialism and impulsiveness and can be compared with consumption pathologies like compulsive buying and credit card misuse. He says cell phones are used as part of the conspicuous consumption ritual and also act as a pacifier for the impulsive tendencies of the user. And it's impulsiveness, he says, that plays an important role in both behavioral and substance addictions.

Roberts' study, co-written with Stephen Pirog III, Ph.D., associate professor and chair of the department of marketing at Seton Hall University, also found that materialism helps drive cell phone addiction.

Materialism

Roberts says materialism is an important consumer value that affects many of the decisions we make as consumers. It's so pervasive we hardly notice it.

At the same time, he says cell phone use and over-use have become so common that it is important to have a better understanding of what drives these types of technological addictions.

Previous studies have shown that young adults send an average of 109.5 text messages a day or approximately 3,200 texts each month. They receive 113 text messages and check their cell 60 times in a typical day and, on average, college students spend approximately seven hours a day interacting with information and communication technology.

"At first glance, one might have the tendency to dismiss such aberrant cell phone use as merely youthful nonsense -- a passing fad. But an emerging body of literature has given increasing credence to cell phone addiction and similar behavioral addictions," Roberts said.

Roberts and Pirog gathered research for their study by surveying 191 business students at two U.S. universities. They estimate that 90 percent of students use the devices.

Modern life seems to keep extending the list of possible addictions. Besides old fashioned addictions to alcohol and drugs people are now addicted to sex a...

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BlackBerry 10 creating some buzz ahead of launch

Research in Motion (RIM), maker of the Blackberry and given up for dead a long time ago as the Apple and Android operating systems came to dominate the smartphone world, is showing some signs of life.

And it's all due to the Blackberry 10, a device that isn't even on the market yet. Earlier this month RIM announced the new phone would debut worldwide on January 30, 2013.

Blackberry 10 isn't just a smartphone but a new platform, and that's what's grabbed attention. Technology analysts have been impressed with what they've seen and heard so far.

BlackBerry Flow and BlackBerry Hub are two of the innovations. The company says BlackBerry Flow is a new user experience that allows seamless navigation across open applications and the BlackBerry Hub. All messages, notifications, feeds, and calendar events come into the BlackBerry Hub and no matter what the user is doing with the device, with a simple gesture, they can look into the Hub at any time.

Keyboard's gone

As advertised, the physical keyboard has disappeared from the Blackberry 10. Instead there is an on-screen keyboard that learns how you write and adapts to how you type so you can write faster and more accurately.

“In building BlackBerry 10, we set out to create a truly unique mobile computing experience that constantly adapts to your needs,” said Thorsten Heins, President and CEO of RIM. “Our team has been working tirelessly to bring our customers innovative features combined with a best in class browser, a rich application ecosystem, and cutting-edge multimedia capabilities.”

All of this has not escaped the attention of Wall Street. RIM stock, which had sunk to the low single digits on the belief the company was destined to become digital roadkill, has surged in the last week. It's now trading between $11 and $12 with a number of analysts sharply raising their price targets.

Blackberry once was the dominant player in the smartphone world, but that was before the iPhone changed the landscape. As Android opened the way for many more device manufacturers, RIM has struggled to stay afloat. The company is hoping Blackberry 10 changes all of that.

Research in Motion (RIM), maker of the Blackberry and given up for dead a long time ago as the Apple and Android operating systems came to dominate the sma...

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Dish Network's wireless hopes brighten

You don't normally think of Dish Network as a wireless carrier but that could change, if Federal Communications Commission (FCC) Chairman Julius Genachowski has his way.

Genachowski is proposing to auction off a batch of spectrum that Dish could use to start a wireless service that would compete with Verizon, AT&T and Sprint. Dish has long had its eye on that spectrum but there is one potential kink.

This would probably be good news to consumers who have long complained of the lack of competition in the wireless market. A consumer sentiment analysis of about 3.5 million comments posted on social media over the last year shows lukewarm feelings for Verizon.

AT&T fares even worse than Verizon, although 3.5 million consumers seemed to have warmer feelings in recent months.

Consumers rate DISH Network

Genachowski wants to require Dish to use lower power levels than usual to minimize the chance of interference with other services.  The FCC is expected to vote on the plan before the end of the year.

“Telling us to lower our power levels cripples our ability to enter the business,” Dish Chairman Charlie Ergen told The Washington Post. “We want to enter the wireless business. We have $6 billion more we want to spend on building out this business. But the FCC could make it extremely risky for us.”

Ergen said the FCC has been dragging its feet on Dish's plan for the last 20 months. If it had approved the plan earlier, the new network could have been in place by next year. But now, Ergen says it will be at least 2015 b efore it's up and running.

Genachowski and others have complained that the highly lucrative wireless business is beginning to resemble a duoply -- with AT&T and Verizon hogging six of 10 wireless contracts. 

“If approved, these actions will promote competition, investment and innovation, and advance commission efforts to unleash spectrum for mobile broadband to help meet skyrocketing consumer demand, while unlocking billions of dollars of value to the public,” FCC spokesman Neil Grace said.

Disgruntled consumers

Consumers rate Verizon Wireless

A little competition would be welcome to consumers like Edward of San Diego, who posted to ConsumerAffairs recently about his experience with Verizon Wireless.

So my Droid burns itself up. They tell me this is normal. Verizon forces you to sign a two-year contract and then do not support the hardware for that period, even if you get an insurance plan. My Droid burned itself up at temperatures of over 230 degrees.

Their solution? For me to pay $700 for a new one because they don't support my model, even though I bought it from them less than a year ago. Verizon is crap. Their customer service is crap.

AT&T Wireless also has more than its share of disgruntled customers. like Jennifer of Reno, who wrote to us recently about what she sees as a decline in AT&T's customer service. 

Prior to 2012, AT&T was wonderful. I've been using this company for many years, and before 2012, I use to think they took good care of me. However, something has changed with this company, and now it seems like their customer service is poor and all they want is the mighty dollar. Well, guess what, AT&T. You are not the only providers out there, so reexamine what truly makes AT&T what it is today - your customers! Just remember, without us, there would not be a you.

Consumers rate AT&T Wireless

Not surprisingly, Dish generates quite a bundle of negative reviews itself but the theory is that another large player in the wireless field would generate at least some additional competition in terms of service plans, pricing and network penetration.  

In his comments, Genachowski noted that just two years ago, the proposed AT&T/T-Mobile merger was threatening to reduce the number of competitors in the marketplace. That plan was derailed by frederal regulators but T-Mobile and Metro PCS reached agreement in October to merge their operations, thus creating a stronger player to go up against Verizon, AT&T and Sprint. 

You don't normally think of Dish Network as a wireless carrier but that could change, if Federal Communications Commission (FCC) Chairman Julius Genachowsk...

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The Lowly Pay Phone Is Getting an Upgrade in New York City

It used to be said that anything at street level in New York City would soon be either broken or stolen. Especially pay phones.

Things have gentrified a bit since then but finding a working phone can still be difficult, as thousands learned when Superstorm Sandy knocked out their cell phones.

Now the city is trying to go one step beyond fixing up its existing phones -- it's installing 250 new iPad-like devices in existing pay phone booths that will provide emergency broadcasts, city information and, yes, daily deals.

The platforms are run as a partnership between New York City and two companies, Cisco and City 24/7.  Multiple mobile apps are accessible through the 32-inch screens. Content also is fed directly to mobile and web platforms.

It's hard to think those 32-inch screens will last long out in public but everyone involved in the project seems to think they'll somehow survive the predation that befalls things left unattended on city streets.

So confident is City24/7 that it says its service eventually will be expanded to more than a dozen U.S. and foreign cities. The smart screens were tested in a pilot project for a while but are now going live in all five of the city's boroughs.

The public-private partnership also includes the city Department of Information Technology and Telecommunications, Cisco Internet Business Solutions Group and LG Electronics USA.

Besides being available on the screens, content developed for the project will be available via mobile and Web platforms.

One question that's not answered in any of the oh-so-cool information tidbits provided by the partnership: Will these things be two-way? In other words, will they be watching us as we watch them?

iPad-like screens are replacing the lowly pay phone in all five of the city's boroughs...

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Could You Be Allergic to Your Smartphone?

Before 2007, when Apple introduced the first iPhone, the Blackberry, made by Research in Motion (RIM), ruled the smartphone world.

Since then, the Blackberry fortunes have fallen, not just because of the iPhone but because of competition from Android phones as well. So the latest news from the Annual Scientific Meeting of the American College of Allergy, Asthma and Immunology (ACAAI) can't be good news for RIM.

A study of smartphones looked at devices that might have a tendency to make you sick, because of the metals they contain.

Many Blackberries contain nickel

“Approximately one-third of all Blackberries contain nickel, but neither cobalt nor nickel was detected in iPhones or Droids,” said allergist Tania Mucci, M.D., lead study author and ACAAI member. “Both metals can cause an allergic reaction including dry, itchy patches along the cheek bones, jaw line and ears.”

If you haven't updated your own flip cell phone for a smartphone, the researchers suggest you have a reason if you suffer from certain allergies. These older model phones also contain cobalt and nickel.

Roughly 91 percent contained nickel and 52 percent tested positive for cobalt. These metals are commonly used in items such as jewelry, coins and even makeup.

Common allergy

Nickel is one of the most common contact allergens, affecting 17 percent of women and three percent of men.

“Patients with nickel and cobalt allergies should consider using iPhones or Droids to reduce the chance of having an allergic reaction,” said allergist Luz Fonacier, M.D., study author and ACAAI fellow. “Blackberry users with known allergies should avoid prolonged conversations, text messaging and handling their phones if they begin noticing symptoms.”

Symptoms of nickel and cobalt allergies can include redness, swelling, itching, eczema, blistering, skin lesions and occasional scarring. For sufferers that are glued to their phones, ACAAI advises opting for plastic phone cases, wireless ear pieces and clear film screens to decrease allergic reactions.

Before 2007, when Apple introduced the first iPhone, the Blackberry, made by Research in Motion (RIM), ruled the smartphone world.Since then, the Blackbe...

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Verizon Wireless Offers Credits to Superstorm Sandy Victims

Verizon Wireless today announced customers in counties of the New York Metro Area and New Jersey impacted by Hurricane Sandy will receive credit for voice and text overage charges. The voice and text credits will be automatically applied to accounts for usage between Oct. 29 and Nov. 16.

Customers in the following counties in New York Metro Area and New Jersey will be credited for voice and text overage charges between Oct. 29 and Nov. 16:

New Jersey

  • Atlantic County
  • Bergen County
  • Burlington County
  • Camden County
  • Cape May County
  • Cumberland County
  • Essex County
  • Gloucester County
  • Hudson County
  • Hunterdon County
  • Mercer County
  • Middlesex County
  • Monmouth County
  • Morris County
  • Ocean County
  • Passaic County
  • Salem County
  • Somerset County
  • Sussex County
  • Warren County
  • Union County

New York

  • Bronx County
  • Kings County
  • Nassau County
  • New York County
  • Putnam County
  • Queens County
  • Richmond County
  • Rockland County
  • Suffolk County
  • Westchester County

Customers in the impacted areas who have questions about credits to their accounts should contact Customer Service at 1-800-922-0204, Contact Us, or on Twitter through www.twitter.com/vzwsupport.

Verizon Wireless today announced customers in counties of the New York Metro Area and New Jersey impacted by Hurricane Sandy will receive credit for voice ...

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Samsung Galaxy S3 Overtakes Apple iPhone 4S in Sales

Mirror, mirror on the wall, what's the most popular smartphone of them all? In the third quarter of this year, it was the Samsung Galaxy S3, not the Apple iPhone 4S.

Strategy Analytics, which follows mobile device sales, says the popular Samsung phone edged out the iPhone 4S during the July through September period. The company found that Samsung’s Galaxy S3 smartphone model shipped 18.0 million units worldwide during the third quarter of 2012.

11 percent share

The Galaxy S3 captured an impressive 11 percent share of all smartphones shipped globally and it has become the world’s best-selling smartphone model for the first time ever. Apple shipped an estimated 16.2 million iPhone 4S units worldwide for second place.

It's the first-ever second place finish for the iPhone but it doesn't suggest flagging interest. The third quarter just happened to coincide with the end of the iPhone 4S' product cycle. Many consumers held off a purchase, waiting for the expected iPhone 5, which debuted September 12.

In fact, when you add in all the iPhone 5 sales in the last two weeks of the quarter, the 4S and 5 combo outsold the Galaxy S3 with more than 22 million shipments.

Advantage Samsung

"A large touchscreen design, extensive distribution across dozens of countries and generous operator subsidies have been among the main causes of the Galaxy S3’s success," Strategy Analytics said in its report.

Interestingly, the numbers show a spike in Galaxy S3 sales at about the same time a California jury found Samsung was guilty of violating a number of Apple's patents. Some analysts think the publicity surrounding the case, and the suggestion the Samsung product was little different from an iPhone, helped boost sales.

Bitter rivals

The two companies are also bitter rivals because the Galaxy S3 uses Google's Android operating system, which late Apple CEO Steve Jobs always maintained was a rip-off of Apple's iOS.

Samsung may not hold the smartphone sale lead for long. Strategy Analytics notes that the Apple iPhone 5 is likely to regain the crown in the current quarter, outshipping the Galaxy S3.

Samsung and Apple together dominate the smartphone market. Analysts project the two companies' combined market share to be about 24 percent.

Mirror, mirror on the wall, what's the most popular smartphone of them all? In the third quarter of this year, it was the Samsung Galaxy S3, not the Apple...

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AT&T and T-Mobile Offer Roaming for Sandy-Stricken Customers

Besides causing death and widespread destruction in the northeast, Superstorm Sandy seems to have brought out the better nature of many businesses.

Banks have sent emails to their customers in the storm zone giving them additional time to pay their credit card bills. Airlines have waived many flight change fees in the wake of massive cancellations and delays.

AT&T and T-Mobile say they are collaborating to help each others customers affected by the loss of a number of cell towers in New York and New Jersey. The two carriers have entered into an agreement to enable roaming on their networks to customers of both companies in the hard-hit areas and where capacity is available and for subscribers with a compatible device.

Sharing

In other words, if an AT&T tower is out but a T-Mobile tower is operating, AT&T customers will still be able to make and receive calls.

AT&T and T-Mobile customers will be able to place calls just as they normally would, but their calls will be carried by whichever network is most operational in their area. The two companies say it will be seamless for AT&T and T-Mobile customers with no change to their current rate plans or service agreements even if the phone indicates the device is attached to the other carrier's network.

T-Mobile and AT&T both utilize network technology based on GSM and UMTS standards, which allows for this sharing of voice and data traffic.

Communications in the storm zone remains a problem. The Federal Communications Commission reported T-Mobile lost 20 percent of its network capacity in New York City and about 10 percent in Washington.

Verizon Wireless reported about six percent of its network was down throughout the storm battered east coast.

Besides causing death and widespread destruction in the northeast, Superstorm Sandy seems to have brought out the better nature of many businesses.Banks...

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California Has a Message for App Developers

Developers of mobile apps are getting some unwelcome news this week. California Attorney General Kamala D. Harris is telliing them they are not in compliance with California privacy law.

The companies were given 30 days to conspicuously post a privacy policy within their app that informs users of what personally identifiable information about them is being collected and what will be done with that private information. Letters will be sent out to up to 100 non-compliant apps at this time, starting with those who have the most popular apps available on mobile platforms.

“Protecting the privacy of online consumers is a serious law enforcement matter,” Harris said. “We have worked hard to ensure that app developers are aware of their legal obligations to respect the privacy of Californians, but it is critical that we take all necessary steps to enforce California’s privacy laws.”

The letters are the first step in taking legal action to enforce the California Online Privacy Protection Act, which requires commercial operators of online services, including mobile and social apps, which collect personally identifiable information from Californians to conspicuously post a privacy policy.

Harris said privacy policies are an important safeguard for consumers. Privacy policies promote transparency in how companies collect, use, and share personal information. Companies can face fines of up to $2,500 each time a non-compliant app is downloaded.

This action by Attorney General Harris follows an agreement she forged among the seven leading mobile and social app platforms to improve privacy protections for millions of users around the globe who use apps on their smartphones, tablets, and other electronic devices.

Those platforms – Amazon, Apple, Facebook, Google, Hewlett-Packard, Microsoft, and Research in Motion – agreed to privacy principles designed to bring the industry in line with California law requiring mobile apps that collect personal information to have a privacy policy. The agreement allows consumers the opportunity to review an app’s privacy policy before they download the app rather than after, and offers consumers a consistent location for an app’s privacy policy on the application-download screen in the platform store. 

Developers of mobile apps are getting some unwelcome news this week. California Attorney General Kamala D. Harris is telliing them they are not in complian...

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Vonage: A Good Alternative to Your Current Phone Line or Just a Big Headache?

We’ve all seen the commercials for Vonage.

The company has created several TV ads that show people tossing old phone bills in a giant pile, and other ads that have customers speaking about giving up old phone services, so they can speak to love ones in distant places for lower costs.

The company says it’s an ideal alternative to traditional phone services because it offers unlimited calling around the globe for one cost, and all you need is a strong Internet connection and a home phone.

Vonage also says it offers much lower rates than practically every other phone company that exists in the U.S. and is ideal for those who regularly call long distance.

Vonage also says it provides a flat rate for global calls, has sound quality that equals traditional landlines or mobile services, and customers can  keep their original phone numbers if they choose.  

For $24.99 a month the company offers unlimited calls to U.S. and Canada, and for $19.99 a month customers can get 750 minutes of outgoing local and long distance calls. Each additional minute cost 3.9 cents, the company says.

Other packages include $11.99 a month for 300 minutes of outbound calls both local and long distance, and with two of its smaller packages--the company says it offers low rates for calling several countries, like Jamaica, Philippines and Guatemala.

On the surface ...

Consumers rate Vonage
On the surface, it does look like Vonage is a nice alternative to traditional phone service, but according to many of our readers, the company has failed to live up to its promises of low costs and high sound quality.

Consumers posting to ConsumerAffairs have complained about everything from being over-charged to not being able to cancel their accounts when they requested it.

“I wanted to cancel Vonage because I moved and wanted to get bundled service via Verizon,” said David of Arlington, Va. 

“I called Vonage to cancel and the first customer service rep routed me to the account manager. Since I had bad experience with canceling anything from online accounts to gym memberships, I wanted to make sure that it gets canceled on the day I made the phone call.”

Vonage offered David everything but the sun and moon to keep his business, but after he refused and went ahead with the cancellation, he found out his account was still active.

“Two months later my account is still active and they charged me a month of service,” he said.

“I called Vonage and went through three people regarding account cancellation and refund. The reason my account was open is that they said I agreed to their service comparison free service. At the end, I spoke to a person named May. She was the unfriendliest person I ever spoke on the phone with. I’ll be calling back and make sure I get my refund," David wrote.

Unlimited calling

 Many people join Vonage because of its unlimited calling feature which is arguably the company’s biggest draw -- and it makes sense, because if one can pay only $24.99 a month to call anywhere in the world with no hassles or hidden fees, it sounds like it would be worth it.

However, some customers said they were charged more than their agreed upon monthly payment, and felt extremely duped after Vonage called them and said their phone plans were being misused.

“Vonage is cheating customers and I believe committing fraud in the name of unlimited calling to US/Canada and 60 countries,” said Jay of New York.

“I live in the USA and have family and friends in India. I call my parents and friends very often. My kids call their grandparents, and sometimes phone calls can last for an hour or more. This month, I got an email from Vonage stating that I am misusing my phone, and my plan will be upgraded if usage goes above 3000 minutes a month.”

“Excuse me,” Jay added. “I have unlimited calling plan, right? I called Vonage and the rep told me that there are certain criteria that he didn’t explain and based on that, they can bump up my plan and charge me $49.99 a month, not $25.99 a month.”

Not just lately

And customer dissatisfaction didn’t just start recently, as my colleague Truman Lewis reported some years back that a class action suit against the New Jersey based company was filed for misleading consumers about how well its services worked, and for conducting questionable business practices.

ConsumerAffair readers also complained about the lack of good customer service, due to rude agents, painfully long hold times and unfulfilled company promises.

We reached outto  Vonage to get a response.  We’re still waiting for Vonage to reply.

In the 932 comments that Vonage received from our readers, it was a challenge to find any positive reviews, so customers should really think long and hard before being lured in by the unlimited call offer.

Wilvert of Killeen, Texas, who’s a soldier in the armed forces and uses Vonage to communicate with his family back home, says using the company has mainly been a big headache for him.

“I’m a soldier in the United States Army,” he wrote. “My only line of communication to my family is a Vonage line. I’ve been with them for one year and all of a sudden, they decided to change my plan without my consent and charge me for going over the minutes.”

“I’m currently stationed in Korea and now I can’t talk to my family as needed. I have to worry about minutes,” Wilvert added. “The service was okay sometimes, but lots of time when I call my wife, she wouldn’t be able to hear me and vice versa, constant call drops, systems error, etc.

Since they decided to make a profit on my need to communicate with my family, I then decided to look elsewhere for other options,” he said.

We’ve all seen the commercials for Vonage.The company has created several TV ads that show people tossing old phone bills in a giant pile, and othe...

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Patents: a Hidden Cost to Consumers?

Apple's long-running patent dispute with Samsung and its huge victory in court last summer made headlines. A jury found that Samsung violated a number of Apple patents in its smartphone and tablet designs.

But beyond the $1 billion damage award, which Samsung says it is appealing, the whole issue of patents affects the price of all kinds of consumer technology, according to at least one expert.

Aija Leiponen, associate professor of technology and innovation strategy at Cornell University, says the cost patents add to products can be significant.

13 percent of a smartphone cost

“The royalty cost for patents held by equipment companies such as Nokia, Motorola Mobility and Qualcomm is estimated to form about 13 percent of the price of a 3G wireless handset,” Leiponen said.

Not only does that raise the price of a smartphone, Leiponen says it makes it more costly and therefore harder for technology innovators to start new companies or develop new products.

Added to that is the legal environment. With huge damage awards in patent infringement cases, the total intellectual property cost to consumers and innovators is likely to keep climbing.

Leiponen has proposed something revolutionary and undoubtedly controversial. Yet he thinks that it would be good for the industry and for consumers. And he thinks he is not alone.

Royalties cap

“There is some consensus among analysts that an agreed level of maximum royalties would be beneficial for consumers and the industry as a whole, he said. “It would shift incentives away from intellectual property creation and royalty extortion and toward product innovation and commercialization.”

Leiponen is enough of a realist to know that such a proposal faces still headwinds from entities that hold intellectual property rights. The industry, he says, will not be able to agree on this by itself.

“This might present a fruitful opportunity for governments and international organizations to provide some ground rules for the licensing negotiations regarding standard-essential patents,” Leiponen said.

Apple's long-running patent dispute with Samsung and it's huge victory in court last summer made headlines. A jury found that Samsung violated a number of ...

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What If You Could Permanently Block Telemarketers and Debt Collectors?

I swear, sometimes bill collectors can be like the Mafia when it comes to tracking you down and making threats, and when you receive call after call--you wouldn’t be surprised if you woke up next to a bleeding horse head one morning.

Telemarketing calls can be even more annoying, because with bill collectors you probably suspect you’ll get a call at some point, but sales calls always seem to fall out of the clear blue sky and always seem to find you when you’re most relaxed, eating a meal, or spending time with family.

But a new smartphone app called PrivacyStar wants to help you in your battle against the invasive phone call, and with its varied and interesting list of features, the company looks to properly arm users against calls that bother us.

We spoke to the CEO of PrivacyStar, Jeff Stalnaker, to get an idea of just how the app will assist consumers in blocking debt collectors, telemarketers and the ever-growing problem of robocalls.

PrivacyStar also blocks text messages and has other unique features too.

“The most liked and used service is the ability to just easily block a phone number from calling you again,” said Stalnaker in an interview with ConsumerAffairs. “We also offer blocking text messages, we added that later at the request of our user base.”

File a complaint

Jeff Stalnaker
Probably one of the coolest and most useful things about PrivacyStar, says Stalnaker, is the feature that allows users to immediately file a complaint to the Federal Trade Commission (FTC) through their smartphone.

Many times after an unwanted call is received, we get upset for a few moments; complain how annoying it is, then go back to what we were doing. The ability to send an immediate complaint could potentially put more pressure on the telemarketer or debt collector, Stalnaker explains.

“After you block a phone call, we would pop a screen that says, “Would you also like to file a complaint with the Federal Trade Commission or the CRTC if you’re a Canadian user? he says. “You say yes, we ask if it was a telemarketer or a debt collector, you say one or the other--we ask you if you have an existing business relationship, you say yes [or] no”.

“Then from there we have a menu of things that you can add to it such as this was a pre-recorded message, this caller was harassing me, I told them not to call me again but they did repeatedly. So all the boxes you can check on the Do Not Call government website, we ask those same questions, so we really mirror what somebody can do on the website but we let you do it in about five or six seconds,” says Stalnaker.

Do Not Call

It seems the Do Not Call list hasn't been very effective as of late, as more than 200 million people in the U.S. have registered for the list, but 150 million telemarketing calls are still made each day. Also, 20 percent of those calls are Do Not Call violations, according to PrivacyStar's statistics.

Recently, Stalnaker spoke at the FTC’s Robocall Summit in Washington D.C., and says he expects PrivacyStar to be one of the federal agency's top three complaint providers when tallies are released.

He also says the phone app has a caller and text ID feature that works better and faster than caller ID features that come with the smartphone. And if you don’t recognize a call or text, the app will be able to look up who that caller was—even after the call has ended.

“Another popular feature is the post-call lookup,” Stalnaker explains. “If you step away and get a cup of coffee or leave your phone for a few minutes and you come back and all you have is ten digits in your call log and you’re not sure who they’re from, even though the call has ended—whether they left a message or not—it’s very easy just to look up with PrivacyStar and we’ll tell you that was XYZ that called you.”

The app also has a feature called SmartBlock that gathers the top 25 blocked numbers from all of its users and provides a list for customers on a biweekly basis. And if you choose, PrivacyStar will block those numbers for you, even if those callers never tried to contact you before.

Ignoring the rules

Stalnaker also says the Do Not Call list was effective when it was first introduced, but eventually telemarketers and debt collectors were able to work themselves around the restrictions pretty effectively.

“What you’re finding now quite frankly, is a lot of telemarketers are simply ignoring the rules,” he said. You have a couple different buckets of telemarketers. You have the telemarketers that are just ignoring the rules, and in some cases maybe even downloading the Do Not Call list under the auspices that they’re going to screen their outbound calls and actually calling people on the Do Not Call list.”

“You have a lot of telemarketers that frankly just aren’t aware of the rules,” Stalnaker adds. “They think it’s a quick way to generate revenue, so they just don’t know it. Then you really have the legitimate telemarketers that are calling but may not have a process to actually check the Do Not Call list before they make outbound phone calls.”

“The bigger challenge is we’ve got to have more, better and maybe harsher enforcement action by the regulators. I know there doing the best they can, they have limited staff and limited budget, so I’m not really beating on those guys— I’m just saying since we’re seeing this expansion of telemarketing calls to people that are on the Do Not Call list, one way at least to correct that is you start enforcing these rules by penalties and fines,” he said.

Easy to complain

Stalnaker also thinks consumers need a seamless and easy way to file complaints to the FTC, because many times, once an unwanted call is received; it’s rare that a person contacts the government agency immediately after.

With PrivacyStar, you don’t have to remember details of the unwanted call, which allows consumers to provide better and more accurate information to the FTC, says Stalnaker.

“In seconds you can hit 'I want to file a complaint,' and we capture the data, so we know the time the phone call happened, we know who it was that called you, we know the phone number--so the quality of data coming through from us is very, very pure.”

PrivacyStar is made for the Android and Blackberry with limited functionality on iPhones. More features are also supposed to be added by the start of next year, like a parental control component that allows parents to better communicate and monitor their child through their smartphone. The app can be downloaded at Google Play and the Apple app store.

Currently the app has 850, 000 users and blocks about 1 million calls per day, says Stalnaker.

I swear, sometimes bill collectors can be like the mafia when it comes to tracking you down and making threats, and when you receive call after call--...

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Verizon Wireless Says Customers Are Embracing Shared Data

Back in June, when Verizon Wireless announced its shared data plan, and that existing customers with unlimited data would have to move to it when they purchased a new, subsidized device, consumers, in the words of the company, “freaked out.”

But it seems to be a different story now. When Verizon reported its third-quarter earnings, company CFO Fran Shammo said many current customers are voluntarily switching to “Share Everything,” a plan that allows users to allocate a set amount of data among different devices on one account.

Migration

"We're seeing customers from our legacy business moving from the unlimited data plan to Share Everything,” Shammo said. “And we're seeing people attach more devices and more smartphones."

New customers must enroll in a Share Everything account but current customers are grandfathered into their unlimited data plans. They can keep unlimited data until they buy a subsidized phone. At that point, that can either pay full price -- usually about $600 for a typical phone -- or go on a Share Everything account.

While Verizon says while the third quarter saw a larger-than-usual number of consumers paying full price for a phone, many others willingly adopted the shared plan. At the end of the third quarter 13 percent of Verizon Wireless's customer base was on a shared plan.

Unlimited fear

Carriers like Verizon and AT&T fear unlimited data plans. As smartphones, and now tablets, have proliferated, the demands for bandwidth have exploded. Fixed data plans give the carriers the ability to better manage the amount of bandwidth they have to provide.

To make the shared data plans more appealing to consumers, Verizon Wireless's Share Everything plans include unlimited text and calling, as well as Mobile Hotspot for all devices, a feature that costs $20 a month under the grandfathered unlimited data plan.

Consumers who have an unlimited data plan may discover that they don't really need it, and that switching to a shared data plan will actually save them money.

Back in June, when Verizon Wireless announced it's shared data plan, and that existing customers with unlimited data would have to move to it when they pur...

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How to Disable User Tracking on iOS 6

Apple's new mobile operating system, iOS 6, has lots of new features that owners of the new iPhone 5 really like. But there's one Apple didn't mention when it introduced the phone last month.

Back in 2011 privacy advocates were unhappy when they learned that Apple and many apps makers were collecting information about users' mobile surfing habits and sharing it with advertisers. Now, apparently, the practice has returned in iOS 6.

The new tracking system is fairly simple. It employs a unique identifier for your device called an IDFA. It's less invasive than the previous version because the IDFA only links a particular device with certain online activity.

Recent data breach

The previous system, which employed an ID number called a UDID, is still causing some concern. Just last month ConsumerAffairs reported that hackers stole the UDIDs of 12 million consumers. The hackers said the files contained user names, name of device, type of device, Apple Push Notification service tokens, zip codes, cellphone numbers, addresses, etc.

Another important difference between the UDID and IDFA is the IDFA can be turned off. If you want it off, however, you'll have to do it yourself because it was turned on, by default, when the operating system was loaded on your device.

Our friends at Sophos Security software provide this simple guide to turning off the tracking system:

  • Click on Settings.
  • Click on General to access the General Settings.
  • Click About
  • Scroll down and click on Advertising.
  • Set Limit Ad Tracking to "ON"

Apple's new mobile operating system, iOS 6, has lots of new features that owners of the new iPhone 5 really like. But there's one Apple didn't mention when...

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It's Official: Japanese Company to Buy 70% of Sprint

Japanese wireless carrier Softbank Corp. has reached agreement to buy 70% of Sprint for $20 billion, the largest foreign acquisition ever by a Japanese company. Both companies are No. 3 in their home markets. They use the same basic architecture, so there should be significant economies of scale in the merger.  

"Our management team is excited to work with SoftBank to learn from their successful deployment of LTE in Japan as we build out our advanced LTE network, improve the customer experience and continue the turnaround of our operations,” said Sprint CEO Dan Hesse.

It was just a few weeks ago that T-Mobile and MetroPCS announced plans to merge, setting off the usual lamentations about Sprint being left at the altar. Sprint has been barely holding its own in recent years and its merger with Nextel set the process back badly.

But Sprint and Softbank are saying that's all in the past now.

Consumers rate Sprint PCS

"SoftBank’s cash contribution, deep expertise in the deployment of next-generation wireless networks and track record of success in taking share in mature markets from larger telecommunications competitors are expected to create a stronger, more competitive New Sprint that will deliver significant benefits to U.S. consumers," the companies said in a joint statement.

SoftBank Chairman and CEO, Masayoshi Son, who founded the company in 1983, said, “This transaction provides an excellent opportunity for SoftBank to leverage its expertise in smartphones and next-generation high speed networks, including LTE, to drive the mobile internet revolution in one of the world’s largest markets.

"Our track record of innovation, combined with Sprint’s strong brand and local leadership, provides a constructive beginning toward creating a more competitive American wireless market.”

Japanese wireless carrier Softbank Corp. has reached agreement to buy 70% of Sprint for $20 billion, the largest foreign acquisition ever by a Japanese com...

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Japanese Company May Buy Sprint

Barely a week after T-Mobile and MetroPCS announced plans to merge, it's reported that Japanese mobile carrier Softbank is in advanced talks to buy Sprint, the No. 3 U.S. wireless company.

The Wall Street Journal quotes people close to the negotiations as saying the deal would be valued at about $13 billion. 

Sprint has been struggling to merge its operations with Nextel, which it acquired a few years ago. The Softbank deal would, presumably, strengthen its financial position and enable it to more effectively compete against Verizon Wireless and AT&T, the No. 1 and 2 carriers.

Consumers rate Sprint PCS

Everyone keeps writing Sprint off but it's still here and its persistence could finally pay off if the Softbank deal goes through and Sprint gets a firmer foundation to support its growth efforts in the U.S.

AT&T tried to buy T-Mobile about 18 months ago, you'll recall, and Sprint was one of the most outspoken opponents, saying it would be hard-pressed to compete against a strengthened AT&T. Although it has since gained some ground, Sprint remains about half the size of Verizon.

The Justice Department blocked that deal and the competitive situation has been in flux since then.

Both Sprint and Softbank, Japan's No. 3 carrier, have been working to expand their high-speed LTE networks, so a merger between the two could bring economies of scale to the build-out effort.  

Barely a week after T-Mobile and MetroPCS announced plans to merge, it's reported that Japense mobile carrier Softbank is in advanced talks to buy Sprint,...

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T-Mobile, MetroPCS Merger Adds New Jolt of Competition

It was a year and a half ago that the headline read: AT&T Buys T-Mobile, Leaving Sprint a Weak Third. Well, that deal got squashed on anti-trust grounds but this time around, it's T-Mobile doing the acquiring, merging with MetroPCS.

And Sprint? It's still a weak third.

After the Justice Department blocked the AT&T/T-Mobile deal, there were fears that the wireless world would soon be dominated by AT&T and Verizon, with only marginal players offering consumers anything remotely competitive.

Consumers rate T-Mobile - Network Problems

The deal announced today isn't likely to raise anti-trust objections, since it actually strengthens two smaller competitors. 

T-Mobile's owner, Deutsche Telekom, has been looking for a way out of the U.S. market and today's deal may accomplish that. It's being engineered as a reverse merger, in which MetroPCS, the smaller of the two, acquires T-Mobile. Since MetroPCS is publicly traded, this enables Deutsche Telekom to eventually sell down its shares and retreat to friendly shores.

It's a little early to say what this means for consumers. The two carriers use incompatible technology so merging their networks is going to be a complex process. However, both have been leaders in offering lower prices and innovative service plans, so one can hope that tendency survives the merger.

Consumers rate Metro PCS

MetroPCS offers no-contract, month-to-month service and T-Mobile has traditionally undercut Verizon and AT&T in its contract offerings. 

Neither carrier covers the entire country with its network and the combined company won't either. Also, neither offers the iPhone. That's estimated to have caused the loss of 1.7 million customers at T-Mobile. 

It was a year and a half ago that the headline read: AT&T Buys T-Mobile, Leaving Sprint a Weak Third. Well, that deal got squashed on anti-trust g...

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Apple Gains Ground on Samsung in Smartphone Sales

If you're keeping track of who is selling the most smartphones in the U.S., note that Apple is gaining ground on rival Samsung.

Just two months after scoring a major patent infringement victory over Samsung in Court, Apple has gained marketshare since the last time comScore issued an accounting. Apple is still in third place, but not by much.

For the three-month average period ending in August, 234 million Americans age 13 and older used mobile devices. Samsung remains king of the hill with 25.7 percent of U.S. mobile subscribers, followed by LG with an 18.2 percent share. Apple continued to inch closer to the number two ranking, however, with 17.1 percent of mobile subscribers, up 2.1 percentage points.

Motorola and HTC round out the top five with 11.2 percent and 6.3 percent respectively.

Apple is only third

With all the press and attention the iPhone gets many people may be surprised to learn it's only in third place. But the iPhone is Apple's only smartphone, even though it continues to sell older versions of the device. Samsung and other competitors, meanwhile, have produced a wide variety of different models appealing to a wider group of consumers.

Google's Android is the most popular smartphone platform for the same reason. The iPhone is the only smartphone on the Apple platform but just about everyone else uses Android. The Google-owned operating system accounts for 52.6 percent of smartphone subscribers, while Apple accounted for 34.3 percent. RIM's Blackberry ranked third with an8.3 percent share, followed by Microsoft at 3.6 percent.

More consumers continued to trade in their old cell phones during the period. The comScore report shows 16.5 million people in the U.S. owned smartphones during the three months ending in August, up six percent versus May.

If you're keeping track of who is selling the most smartphones in the U.S., note that Apple is gaining ground on rival Samsung.Just two months after scor...

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Ban on Samsung Tablet Lifted in U.S.

Suddenly, there's one more tablet for consumers to consider. Even though it has been on the market for quite a while, the Samsung Galaxy Tab 10.1 is now available to U.S. consumers for the first time in more than a year.

That's because a federal court in California has lifted the temporary sales ban, obtained by Apple, that had kept the tablet out of the hands of U.S. consumers. Apple received the injunction after claiming the device infringed on patented technology.

The court previously found in Apple's favor in its patent dispute against Samsung and imposed a $1 billion fine against the Korean electronics firm.

"We are pleased with the court's action today, which vindicates our position that there was no infringement of Apple's design patent and that an injunction was not called for," Samsung said in a statement.

The ban on the Galaxy Tab 10.1 was put in place before Apple's patent suit against Samsung went to trial. While the jury found that Samsung had violated Apple's patents in a number of its devices, it said the Galaxy 10.1 had not violated an Apple design patent as charged, which was the basis for the injunction banning Galaxy Tab 10.1 sales in the U.S.

Back to court

Samsung went back to court and argued that the ban on the tablet should be lifted. And that's not all.

Samsung this week filed a motion in court claiming that Apple's new iPhone 5 violates Samsung patents. The company indicated it is considering a suit aiming to block the sale of the iPhone 5 in the U.S.

The Galaxy Tab 10.1 is an Android tablet introduced in February 2011, a year after the the first iPad. It comes in two models -- both both featuring a 1 GHz dual-core processor, 1 GB of RAM and a 3-axis MPU-3050 gyroscope from InvenSense. It's a full-sized tablet with a 10-inch screen.

Apple targeted the tablet soon after it was released. In August 2011 a German court temporarily banned sales in the European Union. A U.S. court imposed the U.S. sales ban in June 2012.

Suddenly, there's one more tablet for consumers to consider. Even though it has been on the market for quite a while, the Samsung Galaxy Tab 10.1 is only n...

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Smartphones Are 'Medicine That Fits in Your Pocket'

Last month a bioengineering professor at Georgia State University announced development of an iPhone app that could help diagnose a child's ear ache. Researchers at the Mayo Clinic predict that's just the beginning.

The Mayo study confirms the use of smartphone medical images to evaluate stroke patients in remote locations through telemedicine. The study, the first to test the effectiveness of smartphone teleradiology applications in a real-world telestroke network, was published in Stroke, a journal of the American Heart Association.

“Essentially what this means is that telemedicine can fit in our pockets,” said Bart Demaerschalk, M.D., professor of Neurology, and medical director of Mayo Clinic Telestroke. “For patients this means access to expertise in a timely fashion when they need it most, no matter what emergency room they may find themselves in.”

Big city care in a small town

With a smartphone, a patient in a remote, rural area can be in touch with the most sophisticated diagnostic technology. This may be especially important for people at high risk of stroke.

Mayo Clinic was the first medical center in Arizona to do pioneering clinical research to study telemedicine to serve patients with stroke in non-urban settings. Today, Mayo Clinic is the hub in a network of 12 other centers, all but one in Arizona.

In telestroke care, the use of telemedicine platforms or robots located in a rural hospital lets a stroke patient be seen in real time by a neurology specialist who usually is working from a desktop or laptop computer in Phoenix. The Mayo Clinic stroke neurologist, whose face appears on a computer screen, consults with emergency room physicians at the rural sites and evaluates the patient.

If a patient is showing signs of a stroke she can be examined by the neurologist who can also view scans of the patient's brain to detect possible damage from a hemorrhage or blocked artery. If necessary patients can be administered clot-busting medications within the narrow window of time necessary to minimize permanent injury to the brain.

Comparing images

How good are the smartphone images? Pretty good. The study compared the quality of medical images using a particular smartphone application to the same types of information and images typically viewed via desktop computers. Mayo Clinic neurologists worked with emergency physicians and radiologists at Yuma Regional Medical Center to compare brain scan images from 53 patients who came to that medical center with stroke.

The scans were reviewed by radiologists in Yuma and a separate adjudication panel of stroke neurologists to determine the level of agreement between these traditional interpretation routes and new images and scans on smartphones interpreted by telestroke doctors. The study shows there was a high level of agreement – 92 to 100 percent -- among all the reviewers over the most important radiological features.

“Smartphones are ubiquitous, they are everywhere,” Demaerschalk said. “If we can transmit health information securely and simultaneously use the video conferencing capabilities for clinical assessments, we can have telemedicine anywhere, which is essential in a state like Arizona where more than 40 percent of the population doesn’t have access to immediate neurologic care.”

Last month a bioengineering professor at Georgia State University announced development of an iPhone app that could help diagnose a child's ear ache. Resea...

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Half of U.S. Adults Now Have Mobile Devices

It wasn't so long ago that most Americans sat down after work to get caught up on world events by watching the evening newscast on ABC, CBS or NBC. Some still do but a lot more stay up-to-date with their smartphone or tablet.

A detailed survey by the Pew Research Center's Project for Excellence in Journalism (PEJ) in collaboration with The Economist Group, finds that half of all U.S. adults now have a mobile connection to the Web through either a smartphone or tablet. That's up sharply from just a year ago.

Now, instead of waiting for a scheduled broadcast on TV or cable, consumers are watching video clips on their mobile devices. The survey suggests the explosive growth of tablets is driving the trend.

Nearly a quarter of U.S. adults -- 22 percent -- now own a tablet device, double the number from a year earlier. Another three percent of adults regularly use a tablet owned by someone else in their home. And nearly a quarter of those who don't have a tablet -- 23 percent -- plan to get one in the next six months.

44 percent now have smartphone

Those who don't have a tablet are more likely now to carry a smartphone. The survey shows 44 percent of adults now carry phones that allow them to access the Internet, up from 35 percent in May 2011.

Despite all the games and entertainment apps available on these devices, 64 percent of tablet owners and 62 percent of smartphone owners say news is their preferred content, accessing news on their devices at least once a week. And they aren't just checking headlines. Seventy-three percent of adults who consume news on their tablet read in-depth articles at least sometimes, including 19 percent who do so daily. Fully 61 percent of smartphone news consumers at least sometimes read longer stories -- 11 percent regularly.

The findings suggest consumers are not cutting back on the amount of news they consume but are increasing it. Four out of ten mobile news consumers say they are getting more news now and nearly a third say they are adding new sources.

The survey also finds that consumers have yet to embrace certain features that mobile devices offer. While mobile technology allows people to get news anywhere and any time, most people get news on these devices when they are at home -- and roughly half of mobile news users get news on their device just once a day.

Prefer to use a browser

And when they access news, they tend to bypass apps and simply use the browser on their devices, just like they would on their PC at home. That's bad news for publishers, who hoped news apps would allow them to charge for access to news content. More mobile news users have print-only subscriptions than have digital ones. Just 24 percent say they are considering exchanging their print subscription for a digital one.

Pew concludes the mobile revolution has done nothing to lessen consumer's interest in news content, but in fact has increased it. It's just changed the way consumers prefer it to be delivered.

It wasn't so long ago that most Americans sat down after work to get caught up on world events by watching the evening newscast on ABC, CBS or NBC. Some st...

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Samsung Ad Makes Fun of iPhone Fans

It's no secret that Apple and Samsung are locked in a titanic struggle. Apple just gained the upper hand when a jury found that Samsung violated a number of Apple patents with its smartphones and tablets.

The jury awarded Apple more than $1 billion in damages and the court is now considering Apple's request that a number of Samsung devices be banned from the market. While the court is deciding, Samsung is airing a TV commercial for one of the devices Apple seeks to squash -- the Galaxy S III -- and gets in some licks at Apple and its iPhone acolytes.

The spot, entitled "The Next Big Thing Is Already Here," seeks to lampoon Apple customers for lining up for hours last week in order to be the first to purchase the new iPhone 5.

"I heard you have to have an adapter to use the dock on the new one," says one young man waiting patiently in line.

"Yeah, but they make the coolest adapters," responds another young man.

Everything we didn't get last year

"This year, we're finally getting everything we didn't get last year," says another young man waiting in line, a reference to the fact that Apple updates the iPhone just once a year, and that last year's iPhone 4S had little in the way of advancements.

The iPhone 5 has a larger screen and runs on the 4G LTE network -- something that Android phones, in particular Samsung phones, have had for some time. When a former iPhone owner shows up to greet his friends on line, they try to convince him of what he's missing by not getting the new iPhone.

"This one's 4G," says a friend.

"We've had that for a while," the Samsung owner responds.

It's hard to imagine a current iPhone customer will be swayed to switch to Samsung by being portrayed as a clueless poser in TV ads. But who knows? Watch the ad below. 

  It's no secret that Apple and Samsung are locked in a titanic struggle. Apple just gained the upper hand when a jury found that Samsung vio...

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New iPhone App Could Diagnose Kids' Ear Infections

Parents of young children know the drill. Late at night the child awakens in pain with what may be an ear infection.

What usually follows is a late night visit to the emergency room or a costly doctor visit the next morning. But Wilbur Lam, an assistant professor of biomedical engineering at both Georgia Tech and Emory universities, has a different vision.

He's designing Remotoscope, a clip-on attachment and software app that turns an iPhone into an otoscope. Pediatricians currently diagnose ear infections using the standard otoscope to examine the eardrum.

With Remotoscope, parents would be able to take a picture or video of their child’s eardrum using the iPhone and send the images digitally to a physician for diagnostic review.

Potential home diagnosis

“Ultimately we think parents could receive a diagnosis at home and forgo the late-night trips to the emergency room,” said Lam, who is also a physician at Children’s Healthcare of Atlanta and an assistant professor of pediatrics at Emory School of Medicine. “It’s known that kids who get ear infections early in life are at risk for recurrent ear infections. It can be a very big deal and really affect their families’ quality of life.”

Remotoscope's clip-on attachment uses the iPhone's camera and flash as the light source as well as a custom software app to provide magnification and record data to the phone. The iPhone’s data transmission capabilities send images and video to a doctor's inbox or to the patient's electronic medical record.

The device has the potential to save money for both families and healthcare systems, Lam says. Ear infections, or otitis media, affect 75 percent of children by age 6, making it the most common diagnosis for preschoolers.

15 million office visits

They result in more than 15 million office visits per year in the United States and thousands of prescriptions for antibiotics, which are sometimes not needed. At the initial visit with a patient, physicians say it is difficult to differentiate between ear infections caused by viruses, which resolve on their own, and those caused by bacteria, which would require antibiotics.

“As pediatricians will likely only see the child once, they often err on the side of giving antibiotics for viral infections rather than risk not giving antibiotics for a bacterial infection, which can lead to complications,” Lam said. “So, we are currently over-treating ear infections with antibiotics and consequently causing antibiotic resistance.”

Lam believes Remotoscope may result in fewer prescriptions, saving the consumer -- or their health insurer -- a lot of money.

A clinical trial for the Remotoscope is currently under way to see if the device can obtain images of the same diagnostic quality as what a physician sees with a traditional otoscope. The Food and Drug Administration, through the Atlanta Pediatric Device Consortium, is partially funding the trial, Lam said.

  Parents of young children know the drill. Late at night the child awakens in pain with what may be an ear infection.What usually follows ...

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Google Offering Free Boingo Hotspots to Android Users

Google Play and Boingo are offering free Wi-Fi to consumers at more than 4,000 locations across the country but is making no secret of the fact that Windows Phone, Blackberry and iOS users are not on the invitation list.

Before you get too excited about this, please note that it's only through the end of September.

The Wi-Fi hotspots are part of Boingo’s Cloud Nine Media platform, a global advertising network that Boingo said "enables brand advertisers to reach a captive audience through Wi-Fi sponsorships." And you thought Boingo just wanted to be helpful?

Sponsored Wi-Fi locations include 15 airports, such as New York’s John F. Kennedy, Chicago O’Hare and Seattle-Tacoma, Boingo-enabled Manhattan subway stations, and thousands of hotels, shopping malls, cafés and recreational areas.

Sponsorship network

“Google Play is the first to take part in our newly expanded Wi-Fi sponsorship network, which reaches millions of consumers each month with place-based brand engagements,” said Dawn Callahan, vice president of consumer marketing for Boingo Wireless. “Sponsorships like this give users the free Wi-Fi they crave, advertisers the consumer interaction they need, and venues the revenue to offset the costs associated with providing a high-bandwidth Wi-Fi experience.”

The free Boingo Wi-Fi lasts through the end of September. With the recent acquisition of Cloud Nine Media, Boingo Wireless now offers brands a global advertising network that includes more than 70 leading airports, the New York City subway, shopping centers, stadiums and thousands of hotels, restaurants and recreational areas, reaching more than 1.5 billion people annually.

Google Play and Boingo are offering free Wi-Fi to consumers at more than 4,000 locations across the country but is making no secret of the fact that Window...

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Your iPhone Could Be Disabled During The Next Protest You Attend

The next time you’re at a concert and you whip out your iPhone to record  the excitement, you may notice it doesn’t work. During the show you keep trying to turn it on but for some reason it just won't light-up.

But miraculously when you go outside when the concert is over, your phone all of a sudden works again. This can happen to you at the next concert you attend or maybe inside the next movie theater you go to.

Apple has received a patent that would allow the company to turn off its mobile devices in areas that are deemed inappropriate for recording or taking pictures. The new technology would also have the ability to shut down communication functions in devices, so people couldn’t text or make phone calls if they’re in areas that are considered sensitive.

Here’s what's written on the patent:

“This policy enforcement capability is useful for a variety of reasons, including for example to disable noise and/or light emanating from wireless devices (such as at a movie theater), for preventing devices from communicating with other wireless devices (such as in academic settings), and for forcing certain electronic devices to enter ‘sleep mode’ when entering a sensitive area.”

Many believe this new patent could be a good thing, as it can remove the power from movie bootleggers or cut off communication from a group of up-to-no-gooders in an airport let’s say, but it could also harm the public’s ability to document wrongdoing.

Citizen journalists

Remember the kids who were pepper-sprayed at the University of California Davis during the Occupy Wall Street rallies? The students were sitting peacefully but were sprayed at close range, while hundreds of smartphones filmed the incident, which was eventually broadcast around the world.

Well, this type of amateur-video journalism could be halted, as certain entities could have the power to abruptly shut off your phone during protest marches, rallies or political gatherings. Those same entities could also just block off satellite signals so you couldn’t get smartphone access in certain places.

The federal government along with Apple could arbitrarily decide what areas or public functions would be considered sensitive or restricted. Some believe the amount of subjectivity that goes into making such a decision is as big as the sea, which is the reason they're concerned about this new technology.

Although the patent was granted, Apple would still need the okay from the  government to implement the technology, but the company is well on its way to using it in the near future.

Some have already expressed concern over not being able to monitor police action, especially during public protests.

Blackout conditions

"Covert police government operations may require complete ‘blackout’ conditions," said the patent. "The wireless transmission of sensitive information to a remote source is one of the examples of a threat to security. This sensitive information could be anything from classified government information to questions or answers to an examination administered in an academic setting.”

Apple also noted having the ability to shut off smartphones is ideal for professional and some social settings, where devices could easily bother many people at once.

“As wireless devices such as cellular telephones, pagers, personal media devices and smartphones become ubiquitous, more and more people are carrying these devices in various social and professional settings,” it says in the patent. “The result is that these wireless devices can often annoy, frustrate, and even threaten people in sensitive venues.”

Apple also says smartphones should be disabled within photography darkrooms and biological labs, where light can destroy what’s being worked on.

Apple also says the new technology can help drivers as they attempt to use their devices on the road. The company says the smartphone’s communication function could be temporarily deactivated when entering your car or when you're driving in certain areas. Devices would be manipulated by GPS signals and satellites.

Now just which entities will have the authority to deem areas sensitive remains to be seen. Whether it’s only Apple, areas of the U.S. government, or local police departments, setting up the technology nationwide is challenging, but extremely doable.

The fact that Apple has already been granted a patent by the governent, shows that having your smartphone manipulated by someone other than yourself could be happening sooner than you think.

The next time you’re at a concert and you whip out your iPhone to record some of the excitement, you may notice it doesn’t work. and for s...

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Apple Eyes Streaming Music Service, Pandora Quivers

Although it is a relatively measley business at the moment, Internet "radio" is starting to make Apple's iTunes look old-fashioned. And Apple may be hatching a scheme to do something about it.

Pandora, Spotify, MOG and other streaming services are increasingly how consumers are listening to music. Back in the 1990s, buying a song for 99 cents or so on iTunes might have seemed kind of cool but it's starting to resemble the antique juke box over at the Silver Diner.

Consumers rate Apple iTunes

The word on the street today is that Apple is planning something similar to Pandora, basically a service that lets consumers build their own radio station, playing just the types of music they like.

This would be relatively easy for Apple, as it is already a big player in the music business and already licenses millions of songs for iTunes. It's being suggested that Apple might be able to use existing iTunes accounts to offer pre-selected "stations" for its customers.

All of this is still quite preliminary and Apple has not made any public statements about its plan, but the reports surfacing today wre enough to hammer Pandora's shares on the stock market, slicing 19% off their value in trading this afternoon, The Wall Street Journal reported.

This is a headache Pandora doesn't need right now. Although it has nearly 55 million active users, it's a long way from being profitable. The company, which went public last year, has reported widening losses for the last three consecutive quarters as it shells out higher licensing fees to artists.

Ironically, Apple is already a problem for Pandora, as consumers use apps to listen to music on their iPhones and other mobile devices. More customers aren't always good; in this case, Pandora pays higher licensing fees while collecting less in subscriptions and advertising form mobile users.   

Although it is a relatively measley business at the moment, Internet "radio" is starting to make Apple's iTunes look old-fashioned. And Apple may be hatchi...

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Consumers Abandoning Apps Over Privacy Concerns

Most apps are free or close to it, and many provide at least marginally useful services but a new study finds that privacy concerns are driving users away from apps.

The Pew Internet study found that 88% of American adults use cell phones. Some 43% of these cell owners now download apps to their phones but as apps grow more popular, privacy concerns are growing, the study found:

  • 54% of app users have decided to not install a cell phone app once they discovered how much personal information they would need to share in order to use it
  • 30% of app users have uninstalled an app that was already on their cell phone because they learned it was collecting personal information that they didn’t wish to share

Taken together, 57% of all app users have either uninstalled an app over concerns about having to share their personal information, or declined to install an app in the first place for similar reasons. 

Owners of Android and iPhone devices are also equally likely to delete (or avoid entirely) cell phone apps due to concerns over their personal information.

Younger cellphone users were twice as likely as older users to report that "someone has accessed phone in a way that felt like privacy invasion." This poll follows another survey by Pew that found that users were becoming more active in managing their social media accounts. 

Male app users were slightly more likely than female app users to say they have uninstalled an app because it was sharing too much of their personal information. Men and women are equally likely to avoid apps entirely based on personal privacy concerns.

Most apps are free or close to it, and many provide at least marginally useful services but a new study finds that privacy concerns are driving users away...

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New Nokia Phones Offer Wireless Recharging

While attention has been riveted in recent weeks on Apple and Samsung, as they fought their patent battle in court, other smartphone manufacturers seem to have been flying under the radar with pretty cool products of their own.

Nokia, for example, this week announced two new smartphones that will run on Windows 8 and feature something designed to alleviate a constant consumer complaint – rapid battery drain. The Lumia 920 and the smaller Lumia 820 have batteries that can be recharged wirelessly. No more having your phone out of action while it recharges or going dead in the middle of a call.

Charging partners

But wireless recharging requires a little infrastructure. There has to be a way for users to connect wirelessly with a charging station.

Nokia kicked things off by announcing Virgin Atlantic, The Coffee Bean and Tea Leaf would be early providers of wireless charging for the two phones. It said it planned to execute agreement with other partners in the weeks ahead.

Deals with Virgin Atlantic to put wireless charging stations in the London Heathrow Clubhouse lounge and Coffee Bean & Tea Leaf to put charging plates on tables in some of their cafés, were the first of many deals Nokia said it intends to sign to take wireless charging outside the home and office.

Better cameras

In addition to offering wireless charging, the Lumia 920 comes with Nokia's largest-ever battery. But power sources aren't the only innovations the two phones offer, the company says. The phones boast enhanced camera lenses and a technology called Nokia PureView.

Using advanced floating lens technology, the company says the camera in the Nokia Lumia 920 is able to take in five times more light than competing smartphones without using flash, making it possible to capture higher quality pictures and video indoors and at night. It also compensates for hand movement while the photo is being taken.

"Nokia PureView continues to deliver cutting-edge technology to make it possible for a smartphone camera to take the kind of images usually only seen on a standalone SLR camera," said Jo Harlow, executive vice president of Nokia Smart Devices. "With the Nokia Lumia 920 we have made it possible to shoot pictures and video at home, outdoors, in a restaurant or even at night, and come out with professional-looking results."

Focusing on images

Nokia says better imaging is its niche. It says it has tried to create cameras that work well in low light and give consumers a great camera in addition to a great smartphone.

The Nokia Lumia 820 is a mid-range smartphone that Nokia says delivers high-end performance in a compact package. While the Nokia Lumia 820 has the same unibody look and feel as the high-end Lumia smartphones, it comes with an exchangeable shell design. That allows consumers to choose different colors and add wireless charging. Beneath the shell is room to insert a micro SD memory card.

Nokia has not yet announced release dates for the phones or prices but should be available before the end of the year.

While attention has been riveted in recent weeks on Apple and Samsung, as they fought their patent battle in court, other smartphone manufacturers seem to ...

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Watchdog Group Faults FCC Plan to Measure Mobile Data Speeds

The Federal Communications Commission’s plan to launch a program to measure mobile broadband service performance in the United States falls short of providing adequate protection, Consumer Watchdog charges. Cell phone carriers must be required to disclose data speeds in their advertisements if consumers are to benefit, the group said.

Citing deceptive and confusing advertising by mobile phone companies concerning data speeds, Consumer Watchdog last month petitioned the FCC to require wireless carriers to disclose actual network data speeds in advertisements and at the point of sale. 

Consumer Watchdog pointed to AT&T’s advertising of the iPhone 4S as an example of 4G/data speed marketplace abuse. In a petition to the FCC, the group said: 

“In January 2012, AT&T began marketing the iPhone 4S as being a 4G phone, even though Apple represents it as 3G -- a fact that was reflected on the phone itself: when connected to the AT&T network, a ‘3G’ icon appeared on the screen. Then, in March 2012, the iPhone’s software was suddenly updated so the screen displayed a ‘4G’ icon. Nothing else about the phone or AT&T’s network had changed, yet AT&T immediately began an advertising campaign flaunting the phone’s improved, faster 4G speeds.”

Standards ignored

Consumers rate AT&T Wireless

The nonprofit, nonpartisan group told the FCC that technical speed standards for “4G” mobile technology are universally ignored by U.S. cell phone companies, which now promise “faster, 4G” speeds in virtually every advertisement, “either without actually making improvements to existing products and services or without disclosing the meaning of 'faster.’

“Having accurate information about how fast a smartphone downloads data is essential when a consumer choses a device and carrier,” said John M. Simpson, a consumer advocate with the public interest group. “But unless the information is clearly disclosed in advertisements and at the point of sale it is inaccessible and virtually useless.”

“The FCC's mobile broadband testing and measurement program does not go far enough,” said Laura Antonini, Consumer Watchdog staff attorney. “The public may finally get some reliable information on mobile broadband data speeds, but it will not prevent wireless carriers from fooling consumers with inaccurate and confusing data speed claims.”

The Commission announced an open meeting on Sept 21 to discuss the methods for performance testing of mobile broadband Internet service, approaches to remotely acquiring and analyzing such data, and other methodological considerations for the testing of mobile broadband performance.

The Federal Communications Commission’s plan to launch a program to measure mobile broadband service performance in the United States falls short of ...

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Apple Signals It's Not Finished With Samsung

Apple has amended the list of Samsung products it wants banned in the U.S., claiming they also infringe on Apple patents.

In late August a California jury agreed with Apple that Samsung has willfully infringed on various patents in the design and production of a number of smartphones and tablets. Days later Apple asked a judge for an injunction preventing the sale in the U.S. of eight Samsung devices.

Now, in an amended filing, Apple has added more products to its wish list, including Samsung's Galaxy S III smartphone, which was released after Apple filed the original lawsuit. The S III is Samsung's latest smartphone product.

 Flooding the market

In it's court filing Friday, Apple accused Samsung of “flooding the market” with products that violate various Apple patents. In fact, while Apple releases one smartphone update per year, Samsung might release a dozen.

The Samsung smartphones named in the complaint are:

  • Galaxy S III - Verizon
  • Galaxy Note
  • Galaxy S II Skyrocket
  • Galaxy S II Epic 4G Touch
  • Galaxy S II
  • Galaxy S II - T-Mobile
  • Galaxy S II - AT&T
  • Galaxy Nexus
  • Illusion
  • Captivate Glide
  • Exhibit II 4G
  • Stratosphere
  • Transform Ultra
  • Admire
  • Conquer 4G
  • Dart

Apple is also seeking to block sales of Samsung's Galaxy Player 4.0 and Galaxy Player 5.0 media players, along with the Galaxy Note 10.1, Galaxy Tab 7.0 Plus and Galaxy Tab 8.9 tablets.  

Apple has amended the list of Samsung products it wants banned in the U.S., claiming they also infringe on Apple patents.In late August a California jury...

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Apple Targets Eight Samsung Phones for Extinction

Apple has asked a federal judge to order the removal of eight mobile devices made by Samsung from the marketplace, its first request made under its patent suit victory last week.

A jury in California ruled Friday that 28 Samsung devices violated Apple patents and awarded damages of $1.05 billion. Samsung said it would appeal the verdict.

The motion Apple filed Monday names eight Samsung devices that it wants banned from sale in the U.S. immediately. The devices are:

  • Galaxy S 4G
  • Galaxy S2 (AT&T)
  • Galaxy S2
  • Galaxy S2 (T-Mobile)
  • Galaxy S2 Epic 4G
  • Galaxy S Showcase
  • Droid Charge
  • Galaxy Prevail.

The jury found that the devices are among those that infringe on Apple's patents in both design and technology. For its part, Samsung made clear that it would vigorously contest the request.

Fighting back

"We will take all necessary measures to ensure the availability of our products in the U.S. market," the company said in a statement.

The Apple motion took some industry insiders by surprise because it targeted only eight phones, most of which are older models. In filing the motion Apple said it reserves the right to ask for a ban on all 28 Samsung devices later.

Samsung's latest products, the Galaxy S III and Galaxy Note, are not on the list of 28 devices because they were issued after the lawsuit was filed. It's possible, however, that they could be the subject of a future action.

Real target Google?

Though not a target of the lawsuit, Google's Android operating system may feel the repercussions of the verdict. All eight of the smartphones targeted for a ban run on the Android system. The late Apple co-founder Steve Jobs railed against Android, telling his biographer Walter Isaacson at one point that he would not hesitate to "go thermonuclear" against his rival, whom he accused of stealing Apple ideas.

Some think the verdict might provide a boost to Microsoft's mobile platform. A number of manufacturers, including Samsung, are working on Windows-based devices.

Apple has asked a federal judge to order the removal of eight mobile devices made by Samsung from the marketplace, its first request made under its patent...

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Jury: Samsung Ripped Off Apple

In a stunning victory for Apple, a jury in California concluded that Samsung used Apple's patented design and technology in development of its Android smartphones and tablets. It directed Samsung to pay its competitor $1.05 billion in damages.

The impact on consumers may be felt in the marketplace if the verdict stands. While Apple generally releases one smartphone and one tablet per year, Samsung is constantly producing new products in those categories. Apple said it would file for an injunction to block U.S. sales of those smartphones and tablets within the next few days. If Apple is successful, consumers would no longer be able to purchase those devices.

In filing the suit, Apple claimed that Korea-based Samsung copied the design of its iPad when it developed it's line of Galaxy tablets. In addition, in maintains that some Samsung smartphones, which run on Google's Android operating system, unlawfully use technology Apple developed for the iPhone.

Mountain of evidence

"We are grateful to the jury for their service and for investing the time to listen to our story and we were thrilled to be able to finally tell it,” Apple said in a statement. “The mountain of evidence presented during the trail showed that Samsung's copying went far deeper than even we knew.”

Samsung, meanwhile, called the verdict a loss for the U.S. consumer.

“It will lead to fewer choices, less innovation, and potentially higher prices,” the company said in a statement. “It is unfortunate that patent law can be manipulated to give one company a monopoly over rectangles with rounded corners, or technology that is being improved every day by Samsung and other companies.”

Samsung noted that the battle would continue, pointing out that the same case is being argued in courts around the world.

Real war is against Google

Some see Apple's aggressive legal campaign against Samsung as really being directed against Google's Android system, which the late Apple co-founder Steve Jobs called a rip-off of Apple's system. Samsung has been the most successful manufacturing producing Android devices and thus has posed the largest threat to Apple's dominance in the marketplace.

As a result of the ruling many Samsung products could disappear from the marketplace, assuming a court grants Apple's request for a sales injunction. Samsung's Galaxy Tab 10.1 and Galaxy S II smartphones are among the products that could be pulled.

Samsung is the world leader in Smartphone sales with a wide lead over Apple. Some technology analysts have recently speculated that Apple views their Korean competitor as a major threat and targeted it first with its patent claims.  

In a stunning victory for Apple, a jury in California concluded that Samsung used Apple's patented design and technology in development of its Android smar...

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Website Domains Involving Cell Phone App Marketplaces are Seized

Three Website domain names engaged in the illegal distribution of copies of copyrighted Android cell phone apps have been seized -- the first action of its kind. 

The three seized domain names -- applanet.net, appbucket.net and snappzmarket.com -- are in the custody of the federal government. Visitors to the sites will now find a seizure banner that notifies them that the domain name has been seized by federal authorities and educates them that willful copyright infringement is a federal crime. 

“Cracking down on piracy of copyrighted works – including popular apps – is a top priority of the Criminal Division,” said Assistant Attorney General Lanny Breuer. “Software apps have become an increasingly essential part of our nation’s economy and creative culture, and the Criminal Division is committed to working with our law enforcement partners to protect the creators of these apps and other forms of intellectual property from those who seek to steal it.” 

Thousands of apps involved 

During the operation, FBI agents downloaded thousands of copies of popular copyrighted mobile device apps from the alternative online markets suspected of distributing copies of apps without permission from the software developers who would otherwise sell copies of the apps on legitimate online markets for a fee. 

In most cases, the servers storing the apps sold by these alternative online markets were being hosted in other countries, and U.S. international law enforcement partners assisted in obtaining or seizing evidence stored on these servers. Nine search warrants were also executed in six different districts across the country as part of the operation. 

“The theft of intellectual property, particularly within the cyber arena, is a growing problem and one that cannot be ignored by the U.S government’s law enforcement community,” said FBI Special Agent in Charge Lamkin. “These thefts cost companies millions of dollars and can even inhibit the development and implementation of new ideas and applications. The FBI, in working with its various corporate and government partners, is not only committed to combating such thefts but is well poised to coordinate with the many jurisdictions that are impacted by such activities.” 

These enforcement actions are part of the efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders.

Three Website domain names engaged in the illegal distribution of copies of copyrighted Android cell phone apps have been seized -- the first action of its...

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T-Mobile Plans Unlimited Data Option

T-Mobile USA, a solid No. 4, has seemed somewhat adrift since its sale to AT&T Wireless fell through. But now the German-owned carrier is offering something its bigger rivals aren't: unlimited data.

Currently, T-Mobile USA throttes its customers' data speeds after they have downloaded a certain amount of data each month.

But T-Mobile says that, starting Sept. 5, its "Unlimited Nationwide 4G Data plan offers the ultimate worry-free experience." Sprint Nextel is the only other big U.S. provider selling unlimited service.
Consumers rate T-Mobile Billing Disputes

The new plan is designed to satisfy both data-hungry customers who want to experience all their smartphones are capable of and those wanting the peace of mind of never having to keep track of their data usage, the company said.

“We’re big believers in customer-driven innovation, and our Unlimited Nationwide 4G Data plan is the answer to customers who are frustrated by the cost, complexity and congested networks of our competitors,” said Kevin McLaughlin, vice president, marketing, T-Mobile USA.  

Not all consumers would agree with that. Despite its relatively small size, T-Mobile collects more than its share of customer complaints, with billing disputes in the lead.

"Usage charges appeared on my monthly bills many times. When I tried to talk to their representative, they are pretty mean and told me I need to pay for whatever showed on my bill, even if I did not order or did not know what the charges were about," said Flora of Philadelphia. "It seems like they wanted to end the conversation ASAP and they do not care about the customers at all."

T-Mobile's network is another source of frequent complaints.

"I only get about 50% of my text messages," said Melany of Cincinnati. "Half of the calls I make, people claim they never had a missed call from me and visa versa. I have gone into the store numerous times and all they suggest I do is power up and down, remove batteries, do a system reboot. It is not my phone, it is the network!"

T-Mobile has been steadily shedding customers to its rivals for months. Whether the unlimited data plan is enough to reverse that trend remains to be seen.

T-Mobile USA, a solid No. 4, has seemed somewhat adrift since its sale to AT&T Wireless fell through. But now the German-owned carrier is offering some...

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Some Really Cool Food Apps to Download

In the world of eating out, you have your casual diners, your every-now-and-then-food enthusiast, and your hardcore foodie types. But the one thing they all have in common is a way to find and keep up with the eateries that fit their taste and pocketbook.

Way back when — which was really just a few years ago — it was a bit harder to know where the best restaurants and eateries were. A person either had to count on word of mouth to find a good place, see some sort of advertisement or review in the newspaper, or run into that ambitious restaurant owner who talks you into entering his establishment when you walk by.

Today it's a lot easier to find out where the hot spots are through a bevy of new smartphone apps that do everything from allowing you to see restaurant deals in real time, to making reservations and inviting friends to come dine with you, like Foursquare for example.

Foursquare

The company, founded by two buddies and based in New York City, gives the user suggestions on where to eat based on their preferences and past restaurant choices.

For example, if you've been frequenting a lot of Chinese restaurants, and you saved each location in the app, it will tell you about that new Szechuan place that just opened up by your house.

Foursquare will also give you deals and discounts for all the different types of eateries you've been visiting, and it will help you coordinate a restaurant dinner party, or simply let your friends know where you’re eating and invite them to join you for a bite.

And of course there's a review component to the app, so anybody can be a food critic with a built-in audience whenever they feel like it.

This past June, Foursquare relaunched the app after the company redesigned some of its features and highlighted its social media usage. 

Although some of its initial user numbers have slightly decreased since the relaunch, it's still one of the more popular free food apps for Androids, iPhones and iPads.

Around Campus

The Around Campus app has a very specific area of usefulness, as it gathers all of the restaurant and bar deals from college campus planners and relevant Internet sources.

The app is ideal for the college kid with little to no money, or those people who happen to live in or near a college town.

The company says there are over 300 campuses that currently access the service, and the app almost serves as a personal deal expert that does all of the legwork for you by consolidating coupons and cheap places to eat.

The app also allows you to keep abreast of other businesses in the area that may be frequented and helpful to the average college student.

Around Campus is free to access and available on iOS and Androids, and with  new restaurants popping up by the second, these types of apps can only help consumers decide what's best out of a sea of choices.

Big eaters

According to research conducted by the National Restaurant Association, the entire restaurant industry will rake in nearly $632 billion before the year is over, which shows people are still eating out in droves, despite the economy, and app makers can barely keep up with the growing consumer interest.

Many of the app makers are competing with each other and trying to separate themselves by creating a unique service niche that has yet to be thought of by other companies.

Thryve

Thryve is one of those apps that provide a niche service. Its creators made the app to serve as a nutritional coach to help you avoid foods that your body has a low tolerance for.

Users keep track of what they're eating and document how each food item made them feel.

Afterwards, the app suggests other foods to both eat and avoid, so if you that particular beverage or vegetable is making your stomach churn, the app will lead you to other options so you can hopefully enjoy your meal instead of feeling discomfort.

Another useful electronic assistannt that focuses on health is Nutritionix. It helps users eat a little better by providing useful menu information for popular eating locations. Although it's really a database and not an app, Nutritionix can still be accessed on your mobile device.

So if you would like to check the nutritional information of a particular restaurant you're going to, the app will individually breakdown each item, just in case you wanted to know what's really in that cheese dish at Red Lobster.

Mobilecious

Mobilecious is pretty cool too. For those who have immersed themselves in the food-truck craze, this nifty little app could turn into your best friend.

Simply use it to find the particular food truck you crave in real time, and you can also check out what's on each truck's menu. The app also lets you know all of the RV's deals and coupons that are being offered.

Moblilecious can be downloaded for free, and is only available for the iPhone and iPad.

If you're one for an upscale dining experience, and live in San Francisco, Los Angeles, or New York, Blackboard Eats may be just right for you.

The app uses staff members from the food magazine Gourmet to make suggestions, and provides deal offers, reviews and helps users find certain types of restaurants or cuisines. The app is free and can be accessed on both the Android and iOS.

All of these apps are great for foodies as well as the person who just loves to restaurant-hop. It doesn't matter if your taste-buds crave a laid back meal in a moderately priced restaurant, or a high-end dish that requires dressing up a little.

Either way, it's certainly easier than driving around aimlessly searching for the perfect place to eat.

In the world of eating out, you have your casual diners; you're every-now-and-then-food enthusiast, and your hardcore foodie types.Way back when —...

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Samsung Releases First Smartphone For MetroPCS

One reason Samsung is the sales leader in smartphones is that it produces a wide variety of models for a number of different carriers. According to a recent Gartner report, Samsung increased its market share from 16.3 percent to 21.6 percent in the second quarter of 2012, thanks in large part to its popular line of Galaxy smartphones.

It's newest phone, the Samsung Galaxy S Lightray 4G, is designed specifically for MetroPCS. In fact, its the first Samsung phone for that carrier.

The Galaxy S Lightray 4G does what many smartphones do -- it allows consumers to browse the web and run applications, download content plus stream videos and music. It's offered with no annual contract and tax-and-regulatory-fee-inclusive service plans start at just $40 per month.

Live broadcast TV

But the Galaxy S Lightray 4G is also the first smartphone in the U.S. to offer live, local broadcast television with Dyle mobile TV. Dyle mobile TV allows consumers to watch local and national sports, news and entertainment broadcast programming on their mobile phones.

Access to the Dyle mobile TV service will be offered in select markets and at no additional charge to customers on a MetroPCS 4G LTE service plan. To see whether the service is offered in your market you can check out the coverage map here

The Galaxy S Lightray 4G runs Android 2.3 Gingerbread and featuresw a 4.3 inch touchscreen and 1GHz processor. It has an eight magapixel rear-facing camera with LED flash and a 1.3 megapixel front-facing camera, allowing for video chatting.

The Galaxy S Lightray 4G will be MetroPCS’ first smartphone to feature 4G LTE Mobile Hotspot, allowing customers to share their MetroPCS 4G LTE connection and data with multiple Wi-Fi-enabled devices. MetroPCS will also offer 4G LTE Mobile Hotspot on future 4G LTE Android smartphones.

The phone is available now at MetroPCS stores and online for $459 plus tax.

One reason Samsung is the sales leader in smartphones is that it produces a wide variety of models for a number of different carriers. According to a recen...

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Jury in Apple Suit Against Samsung to Get Case This Week

After three weeks of presenting evidence in court, both Apple and Samsung are gearing up for closing arguments as the landmark patent case reaches a climax this week.

Closing arguments are set to begin Tuesday. It's expected the case could go to the jury on Wednesday. No less than the future of smartphone and tablet universe is at stake.

'Slavishly copying'

Apple, based in Cupertino, CA, brought the case against Korea-based Samsung, accusing the equipment maker of "slavishly copying" apple's design for smartphones and tablets. It's seeking $2.5 billion in damages, which would essentially be 100 percent of Samsung profits from smartphone and tablet sales.

During the three-week trial Samsung denied copying Apple's technology and argued that the iPad and iPhone were significantly aided by other companies' existing technology.

This isn't the only Apple versus Samsung case. Apple has sued Samsung in other countries making the same claims.

The suits come as Samsung has quietly taken a commanding lead in smartphone sales, though Apple's iPad still dominates among tablets. While Apple makes the iPhone 4S and sells older versions of the iPhone, Samsung has produced a wide variety of high-performance and feature-laden Android phones that run on the faster 4G LTE networks.

Turning out more smartphone models

While Apple puts out one new smartphone each year, Samsung might introduce a dozen. A recent Gartner report shows it continued to pull away from Apple in the smartphone sales race in the second quarter, commanding 21 percent of the market.

Technology writer Steven Vaughn-Reynolds, of ZD Net, who says he owns and uses a number of Apple devices, writes that he believes Apple is suing Samsung because it is afraid to compete with the Korean manufacturer.

"I think it's because Apple, without a well Jobs, has gotten frightened of competition," he writes. "Apple can afford to make nice with Microsoft. The boys from Redmond with their smartphones and tablets have never been competitive in either market. Android is another matter."

And Jobs, shortly before his death, expressed anger at Android, which is a product of Google, not Samsung, vowing to use all of Apple's money, if necessary, to destroy it.

After three weeks of presenting evidence in court, both Apple and Samsung are gearing up for closing arguments as the landmark patent case reaches a climax...

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Samsung's Galaxy Note Tablet Features Stylus and Split-Screen

The late Steve Jobs didn't like using a stylus and so Apple gadgets didn't have one, even though they were widely sold as accessories in the after-market. Now Samsung is hoping a stylus-style pen and a split-screen function set off its Galaxy Note 10.1 tablet from the competition, most notably the Apple iPad.

What this means is that a user could be looking at one side of the screen while taking notes or sketching on the other side. Samsung designers think it brings new functionality to the tablet, which many consumers find hard to use because of the on-screen keyboard.

But while those features may be attractive, they don't come cheaply. With 16 gigabytes of memory and Wi-Fi only -- no cell connectivity -- the Galaxy Note is priced at $499. If that sounds familiar, it's because it's the same price as the similarly-equipped iPad.

Samsung is promoting the Android-based device as a game-changer -- as a completely new information appliance that goes beyond previous tablets, smartphones, laptops and other devices.

"It is the ultimate on-the-go device which consolidates core benefits of diverse mobile devices while maintaining smartphone portability," the company said in publicity matrials surrounding the launch.

"Consumer research indicates that people always want to do more tasks much better, even on the go, whether it is web browsing, email, games, or viewing photos and videos," Samsung said. "Even for consumers with multiple smart devices, they still carry around a notepad for writing down ideas."

Note-taker

Basically, once all the jargon and hype is taken away, the Galaxy Note is notable primarily for its ability to function as a note-taker that lets you look at something on one side of the screen while taking notes on the other. It sounds simple, but just try doing it on any other device.

Even a task as simple as jotting down a phone number or address from a smartphone requires either a dead-tree notepad or a pen that will write well on your sweaty palm. 

And yes, the Galaxy Note is capable of translating your written notes into text, although reviewers who've tried it say it works only moderately well. Of course, the same is said daily in much more emphatic language about the utilities that try to translate speech -- i.e., voicemail messages -- into text. The results are usually laughable, at best.

Reviewers have noted that the resolution of the Note's screen isn't as sharp as the iPad and the battery life isn't as good. But does any of that really matter if you're desperately taking notes or trying to make a quick sketch of the architectural concept that came to you on the subway?

The Note may catch on or it may not. But you've got to give Samsung credit for coming up with a new twist on what is by now an old idea.

The late Steve Jobs didn't like using a stylus and so Apple gadgets didn't have one, even though they were widely sold as accessories in the after-mar...

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Samsung Unveils Galaxy Note 10.1

Samsung's latest entry in the tablet wars, the Galaxy Note 10.1, will go on sale in the U.S. on Thursday, August 16, the company said.

It will be available in a 16GB version for $499 and a 32 GB version for $549 at major retailers, including Amazon, Best Buy, hhgregg and Tiger Direct.

The Galaxy Note 10.1 has been described as a bigger version of the original Galaxy Note, which is not a tablet but a smartphone. Actually, it falls into the category known as phablet, providing nearly all the functions of both devices.

The Galaxy Note 10.1 does not make phone calls but appears to do nearly everything else. Like it's smaller cousin, the Note 10.1 comes with a stylus called the “S Pen.” You use the S Pen to write on the tablet's screen.

Multi-screen function

The screen can be divided in two, so that users can run apps or brows the Web on one side and make notes, using the S Pen, on the other. Tho help you keep up with the S Pen, there is a slot on the side of the tablet where it fits. When it is removed, it activates a taskbar that quickly launches the various apps that use the writing tool.

The Galaxy Note 10.1 operates on Android 4.0 Ice Cream Sandwich and employs a 1.4-GHz quad-core processor and 2GB of RAM. The screen offers a sharp 1,280-by-800 LCD display and two cameras: a five-megapixel rear-facing camera and a 1.9-megapixel one that faces front.

It comes preloaded with apps, including Adobe Photoshop Touch, optimized for the S Pen.

Floating video player

A familiar Samsung feature present on the Galaxy S III smartphone -- Pop up Play -- is back on the Note 10.1. Pop up Play is a floating picture-in-picture video player. On the Note 10.1 users can adjust the player's size.

"Our goal with the Samsung GALAXY Note 10.1 was simple -- redefine the tablet experience," said Tim Baxter, President, Samsung Electronics America. "The S Pen offers both active content creation as well as passive content consumption, while the Multiscreen capability finally enables true multitasking. For the user, the resulting experience is completely new and quite unexpected."

The Note 10.1 offers a mini-apps tray that can launch a selection of mini-apps on top of others apps and freely moves around the screen. They include Alarm, S Note, Music Player, Email, Calculator, World Clock.

Multitasking

The multi-screen feature enables users to utilize two different applications side-by-side simultaneously for multitasking. Users can view Web pages or videos, or launch other applications while writing or sketching ideas with the S Pen.

The tablet comes in a choice of white or dark gray. Available accessories include replacement S Pen, S Pen holder kit, book cover in gray or white, travel charger, USB connection kit to allow usage of thumb drives or USB peripherals, HDMI adapter and Universal desktop dock.

Samsung's latest entry in the tablet wars, the Galaxy Note 10.1, will go on sale in the U.S. on Thursday, August 16, the...

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58 Percent of U.S. Consumers Use Smartphones

In 2007, when Apple introduced it's first iPhone, the Blackberry was the dominant smartphone. The first Android phone wouldn't come along until a year later.

From that humble start five short years ago, smartphones -- which allow users to access the Internet from their devices using a browser or apps -- have radically changed how consumers access the web. And the trend is accelerating.

New research by Frank N. Magid Associates shows 58 percent of U.S. consumers how have a smartphone and 76 percent of them are under age 44. The introduction of tablet computers in 2010 has contributed to the explosive growth in mobile computing.

Tablet use: zero to 34 percent

In two years time, the percentage of computers using a tablet surged from zero to 34 percent. Apple has introduced three versions of its iPad so far but now faces increasing competition, including from a host of smaller, lower-priced tablets.

As a result, consumers are sending information over the Internet while on the go, not just from their PCs. The Magid study suggests the trend will only grow. It predicts that by mid 2013 the current 99 million smartphone users will increase to 151 million.

The number of consumers using tablets will increase from 51 million to 106 million.

What's drawing consumers to mobility? It's not just to send text messages and check email -- the principal uses when the Blackberry reigned. Now, Magid researchers says consumers are shifting to the mobile platform to consume a wide array of content including social media, gaming, and video, including full length TV shows and movies.

"There's no such thing as distinct mobile content anymore," said Tom Godfrey, Magid's Executive Director of Mobile Strategy. "What publishers and advertisers have to realize is that most content going forward will be consumed on a mobile device and that it must be accessible and optimized for that platform."

Sizable lead

And because Apple's operating system is exclusive to the popular iPhone, the Android operating system -- available to all manufacturers -- has zoomed ahead of Apple in mobile marketshare. Android leads in the smartphone race 48 to 32 percent. Magid says it is now rapidly overtaking Apple in the tablet market.

The iPad now makes up only 50 percent of the installed tablet base compared with 72 percent in 2011. Among consumers planning to purchase mobile devices in the next 12 months, 51 percent already have a tablet and 75 percent already have a smartphone.

Magid reseachers says that shows consumers aren't content to own aging technology but rather, want to keep up with or ahead of the latest mobile trends.

In 2007, when Apple introduced it's first iPhone, the Blackberry was the dominant smartphone. The first Android phone wouldn't come along until a year late...

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Samsung Still Leads Apple In U.S. Mobile Device Sales

Apple and Samsung's ongoing courtroom battle over patents may be overshadowing the contest between the two smartphone giants in the marketplace. But that confrontation is just as intense.

At the moment, Samsung appears to have the upper hand. In a report digital analyst comScore, Inc., says Samsung is the overall top handset manufacturer when it comes to U.S. sales, cornering 25.6 percent of the market in the second quarter of 2012.

Apple comes in third, with 15.4 percent of the market trailing LG, which claims an 18.8 percent market share in the comScore survey of 30,000 mobile subscribers.

Despite its high profile and popularity, perhaps Apple's position is not so unexpected. Apple basically makes one handset, the iPhone. True, consumers can buy older versions of the iPhone at a lower price, but that's hardly the same as producing a full line of phones that feature the latest technology.

Samsung, for example, offers six different 4G smartphone models for Verizon Wireless subscribers at prices starting at $49. Apple's latest iPhone, the 4S, still operates at 3G speeds.

On the move

Despite that, Apple continues to gain ground. Its operating system now makes up 32.4 percent of the market to Android's 51.6 percent share. Still, it's impressive when you consider that one manufacturer holds that 32.4 percent while Android's 51.6 percent is shared by Samsung and a number of other device manufacturers who make Android phones.

RIM, maker of the Blackberry, ranked third with a 10.7 percent share, followed by Microsoft at 3.8 percent and Symbian at 0.9 percent.

The comScore report also shows that for the three-month average period ending in June, 234 million Americans age 13 and older used mobile devices. The U.S. population is estimated to be a little over 313 million. More than 110 million people in the U.S. owned smartphones during the three months ending in June, up four percent from March.

People do a lot more than talk on their phones. In June, 75 percent of U.S. mobile subscribers used text messaging on their mobile device and 51.4 percent downloaded at least one app. About half of subscribers used their devices to access the Internet.

Apple and Samsung's ongoing courtroom battle over patents may be overshadowing the battle between the two smartphone giants in the marketplace. But that ba...

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Samsung Planning Bigger Tablet, Documents Show

There's a new report suggesting Samsung is planning a new tablet that will be larger than most of those currently on the market, including Apple's iPad. The report surfaced, of all places, in court documents in Samsung and Apple's bitter patent dispute.

A number of tech sites reported the findings after pouring through documents both sides released in the U.S. trial where Apple claims Samsung stole its design and technology in development of its competing smartphones and tablets. Apple sued Samsung in a number of other countries as well but the long-awaited and crucial U.S. trial got underway this week.

Among the documents that surfaced are plans for a new 11.8-inch screen tablet with very high-resolution. The documents refer to the tablet as the P10 and show a pixel density of 256 pixels per inch (PPI)and 2,560 x 1,600 screen resolution.

Building speculation

The documents have the tech world buzzing, especially since tablets lately have been getting smaller, not larger. There are a number of seven-inch tablets competing around a $200 price point and speculation is building that Apple is about to join in with a smaller, cheaper iPad next month.

In court Apple engineers claimed Samsung began copying Apple technology in 2007, when the first iPhone was introduced. Samsung's lawyer disputed that, saying there were a number of large screen phones that were in use by consumers before the iPhone ever hit the market.

Apple is asking the court for a permanent injunction on the sale of Samsung devices in the U.S. Currently there are temporary injunctions on the U.S. sales of Samsung's 10 inch tablet and the smartphone it developed with Google.

In July Samsung won a temporary victory in Britain when a judge there ruled Samsung didn't copy Apple in its design of the Galaxy Tab, noting “it is not as cool” as an iPad.

There's a new report suggesting Samsung is planning a new tablet that will be larger than most of those currently on the market, including Apple's iPad. Th...

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Verizon Wireless Faces $1.2 Million Fine for Blocking Apps

Verizon Wireless will pay a $1.25 million fine leveled by the Federal Communications Commission (FCC) for blocking subscribers' access to certain apps -- one in particular.

For a number of years Verizon Wireless has offered a “tethering” package that allowed some subscribers to connect their laptop computers to the Internet by connecting through their cell phones. At one time the company charged an extra $30 a month for this feature.

So it didn't look favorably on app developers who devised programs that allows people who weren't paying for that feature to connect their laptops through a cell phone app. Verizon Wireless then blocked access to that app.

Special rules for Verizon

AT&T did much the same thing but avoided a fine. Why? Because part of Verizon Wireless' spectrum has special rules.

When the company purchased “C Block spectrum,” it was then bound by the FCC's C Block rules, requiring licensees of C Block spectrum to allow customers to “freely use the devices and applications of their choosing.”

Presumably that means tethering. FCC Chairman Julius Genachowski says the C Block spectrum rules are not optional.

“The open device and application obligations were core conditions when Verizon purchased the C-block spectrum,” Genachowski said. “The massive innovation and investment fueled by the Internet have been driven by consumer choice in both devices and applications. The steps taken today will not only protect consumer choice, but defend certainty for innovators to continue to deliver new services and apps without fear of being blocked.”

Can't restrict service

Specifically, the rules say licensees offering service on C Block spectrum “shall not deny, limit, or restrict the ability of their customers to use the devices and applications of their choice on the licensee’s C Block network,” subject to narrow exceptions.

“This case was the first of its kind in enforcing the pro-consumer open access obligations of the C Block rules,” said P. Michele Ellison, the FCC's Enforcement Bureau chief. “It underscores the agency’s commitment to guarantee consumers the benefits of an open wireless broadband platform by providing greater consumer choice and fostering innovation.”

At one time Verizon Wireless charged customers an extra $30 a month for a tethering package that included 5GB of data. It recently switched to a “shared data” system in which a customer may have multiple devices on one account that shares a pool of data.

But Verizon Wireless still charges a fee of $20 a month for the USB modem device that allows a laptop to access the Internet. Since Verizon Wireless, as part of the agreement with the FCC, will notify app store operators it no longer objects to the downloading of a tethering app to customers on C Block spectrum, it appears users could employ the app to avoid paying the monthly charge.

Verizon Wireless will pay a $1.25 million fine leveled by the Federal Communications Commission (FCC) for blocking subscribers' access to certain apps. One...

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New Apps Bringing Online Socializing Closer to Home

Remember when meeting a person online had a creepy factor? That started to change sometime around the millennium.

Sure we still make new friends the traditional way by maybe meeting a person at a party, or by becoming acquainted with another parent at our child’s sporting event, but for the most part socializing on the Internet has become quite commonplace.

A 2006 survey conducted by the Pew Research Center's Internet & American Life Project showed that almost 7 million adults in the U.S. have met and gone out with a person they met over the Internet. And remember folks, that was 2006.

Fast forward to today's Internet-driven age and meeting a person online is as normal as seeking employment online.

It's ideal for the introvert who feels more confident initiating conversation through a keyboard, and it's also perfect for those who simply want to preview their social options before committing to a face-to-face meeting.

Apps bring it home

Phil Shpilberg

Now a new app by the name of "City Chatter" is taking online socializing to yet another level by allowing users to connect with people right in their neighborhood, office or local hang-out, as opposed to communicating with people in far-off cities that they're less likely to meet in person.

Instead of just meeting people online from your home, the app is for those who are already in a coffee shop, bar or business conference.

Instead of walking right up to a person and introducing yourself or joining a conversation the traditional way, you can speak to others virtually through the app first. Or you can initiate a conversation for others in the location to join.

City Chatter is available on popular mobile devices including the iPhone and Androids, and its creator Phil Shpilberg says it better allows people to choose just who they want to communicate with.

"City Chatter is a local social app that combines meeting new people with group and private chat," he explained in an interview with ConsumerAffairs. "You open the app and see who is in your neighborhood bar, business conference, coffee shop, stadium or any other place. From there you can browse profiles and start a group or private conversation with those that interest you." 

Shpilberg says a new generation of consumers have gotten used to receiving one's background information upon request before actually meeting them, and things aren't likely to reverse themselves anytime soon.

"I think we now have a generation of people who grew up with Google, Facebook, MySpace and LinkedIn, and expect to learn about the people they interact with instantly," he said. "For them it's very natural to want to learn more about people around them. Personally, I created City Chatter because I wanted a way to meet people, and talk to them, virtually first."

Critics of virtual socializing believe it keeps people in their respective comfort zones, and disrupts the natural order of communication. Some think approaching someone face-to-face with shyness or trepidation is completely fine, and the traditional way of meeting people shouldn't be altered.

Will using an app to speak to someone just two bar stools away be the new thing? Will virtual socializing ultimately diminish the importance or need of face-to-face interaction?

"I bet Alexander Graham Bell had to answer that question just as much as Mark Zuckerberg," Shpilberg said.

"Social networking, like the telephone, is a tool for social interaction, not anti-social behavior. For example, when I travel I catch up, in person, with old friends I only keep up with because of Facebook. I don't believe tools like social networking make us introverted or extroverted. I believe they enhance our lives and make it easier to do the things we want, whether it's to talk to people more face-to-face or less," he said.

Helping, not hurting

Shpilberg also says that technology isn't hurting the traditional way of meeting people, it's actually helping it.

"I think technology is both enhancing and changing the traditional way of meeting people," he said. "For example, I regularly make contact with business people on LinkedIn and start investor relationships on Angel.co. A few years ago it was really novel to hear people meeting their partners on dating websites and now it seems the most typical way people meet."

"But these connections, if they care to be successful, always result in face-to face meetings," Shpilberg added.

“The social graph makes things even more interesting now. We trust friends of our friends more than we do strangers. Now I can find out how I am connected to most people in the world and find somebody who can make an introduction or tell me more about the person. We are quickly moving to a world where the word "stranger" is losing meaning."

But is that a good or bad thing? Because we've all of heard of many disturbing cases when people have used the anonymity of the Internet to their deceptive advantage.

The social mask that the Internet provides is often what draws people to initiate communication. But that same mask can hide the face of someone who is simply up to no good.

Staying safe

So how does one stay safe with the City Chatter app? Especially since those you're communicating with will be within arm's reach. I mean, don't creepy people hang out in coffee shops too?

"The same common sense applies in digital interaction as in physical ones," says Shpilberg. "Don't give out personal information to people you don't know. In City Chatter in particular you have very simple privacy controls that allow you to hide your specific location or any other profile information you don't want to share."

"Just use the simple Show/Hide toggles in the Privacy menu. The only thing we require to use the network is your first name and first initial of last name. We take safety very seriously and encourage everyone to be thoughtful of what they are sharing and aware of their surroundings, both on our network or any other one they use," he said.

Shpilberg also explains how the new app will assist those in the work world, as trying to meet your new best friend or your soul mate is only one way a social app can be used.

"City Chatter makes communication at a shared physical location like an office, conference room, or convention very simple," he noted. "You simply log on and see everyone else there. There is no need to add people to a chat, or a group text message, one by one. You can start instant conversation and collaborate as a group on your mobile phones."

"When you go to a business event, you can get an instant directory of who is there. We are going to work on partnerships that will identify location as Featured Chat Rooms, to make the kind of communication as simple as possible," he said.

The app can be downloaded for free at the iTunes App Store, as well as on Google Play. It can currently be used throughout the U.S.

Remember when meeting a person online had a creepy factor? There was once a time when meeting a person in your house was associated with t...

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Things to Think About Before Using Mobile Banking

Banks are increasingly urging customers to use mobile banking, to enjoy the convenience of accessing their accounts with their smartphones. But before jumping on the mobile banking bandwagon, there are dangers to consider.

"Trade securities, transfer funds between eligible accounts and get a single view of your Bank of America banking plus Merrill Edge investment accounts in one place," Bank of America says on its website. "You can also access a full range of investment products, analysis and market insights."

Bank of America and other financial institutions do provide security features and advanced encryption technology, which is good. But is it enough to provide protection against identity theft and other financial crimes? A number of researchers, including Paul O'Farrell of the Identity Theft Council, have warned some mobile banking apps have security flaws.

We've seen how hackers have generally been able to compromise PCs. Smartphones usually have less security than computers, though there are many new mobile security products coming to market. But what if you lose your smartphone?

Access to your identity

“Anyone who has access to your cell phone has access to your identity in a few clicks,” said Elizabeth Baker, an assistant professor at Wake Forest University and an expert in information system security issues. “Often, credit card companies limit your financial responsibility if your card is stolen and fraud is committed. This is not true for your checking and savings bank accounts. Money fraudulently withdrawn can be costly.”

Consumers using mobile banking apps should by all means take advantage of all the security features their banks offer. In addition, there are some common sense safeguards that will provide some protection should your device fall into the wrong hands.

For example, you should never store financial information or other sensitive information on your cell phone -- logins, passwords, account numbers, Social Security numbers, etc. -- not even in a mobile banking app.

"If you lose your phone, whoever finds it has immediate access to your account if your login credentials are stored," Baker said. "A thief can use the app and get your account info to withdraw your money. It's a big hazard."

Somethings you just don't text

Don't text financial information. Not only are texts not secure forms of communication, anyone who finds or steals your smartphone can access all the texts you've sent.

Think about what would happen if you lost your smartphone. It happens more than you think. A 2011 survey by the data security firm Sophos found that 22 percent of respondents had lost their phones. Seventy percent of them didn't use password protection. Also, find out if there is a way to remotely delete information from your phone and be prepared to take that step.

If you use mobile banking you should probably check your account for suspicious activity more frequently than you might otherwise. Stay on top of your account so you know nothing unexpected is happening.

Baker says teens and young adults may be particularly vulnerable to mobile identity theft because they are a bit too comfortable sharing information through their phones. Baker says parents should discuss the dangers of mobile banking with teens when they open their first bank accounts and monitor their accounts regularly.

Banks are increasingly urging customers to use mobile banking, enjoying the convenience of accessing their accounts with their smartphones. But before jump...

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Why Your Tweens Shouldn't Text

In his second term, President Theodore Roosevelt tried to “reform” U.S. spelling, to make it simpler and easier to write words. But what Roosevelt failed to do, the practice of “texting” may succeed in doing. And not everyone thinks that's a good thing.

Drew Cingel, a doctoral student at Northwestern University, says the group of adolescents known as “tweens” are forming poor language skills and he blames texting. When people send texts, they tend to shorten words, use abbreviations and initials.

These usages quickly spill over into everyday usage. Cingel says more tweens are performing poorly on grammar tests.

Gr8!

"They may use a homophone, such as gr8 for great, or an initial, like LOL for laugh out loud," said Cingel. "An example of an omission that tweens use when texting is spelling the word would, w-u-d."

Cingel said the use of these shortcuts while texting, especially if they do a lot of texting, may hinder a tween's ability to switch between techspeak and the normal rules of grammar. The consequences can be severe, such as not getting a job because you wrote “i wud b a gr8 worker:)” on a job application.

To prove his point Cingel gave middle school students in a central Pennsylvania school district a grammar assessment test. The researchers reviewed the test, which was based on a ninth-grade grammar review, to ensure that all the students in the study had been taught the concepts.

The researchers then gathered information about each student's texting habits.

Decline in grammar scores

"Overall, there is evidence of a decline in grammar scores based on the number of adaptations in sent text messages, controlling for age and grade," Cingel said.

Not only did frequent texting negatively predict the test results, but both sending and receiving text adaptations of words were associated with how poorly they performed on the test.

The damage appears more pronounced for spelling than punctuation. Typical punctuation and sentence structure shortcuts that tweens use during texting, such as avoiding capital letters and not using periods at the end of sentences, did not seem to affect their ability to use correct capitalization and punctuation on the test.

Ahead of his time

Roosevelt's idea to change the spelling of words like “through” to “thru” was met with extreme hostility by Congress, the Supreme Court and the nation's newspapers. Alas, he appears to have been a full century ahead of his time.

Young people are now changing the language to accommodate small screens and tiny keyboards. Cingel said he started the study after receiving texts from his young nieces.

"I received text messages from my two younger nieces that, for me, were incomprehensible," Cingel said. "I had to call them and ask them, 'what are you trying to tell me.'"

In his second term, President Theodore Roosevelt tried to “reform” U.S. spelling, to make it simpler and easier to write words. But what Roosev...

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Samsung Tops Apple In Latest Smartphone Sales

While Apple is waging war on Samsung in the courtroom, charging patent infringement, the battle between the two smartphone makers for the consumer's heart and mind continues as well. And Samsung appears to be winning that battle.

Juniper Research has released data showing Samsung has taken a rather sizeable lead in the number of shipped smartphones. According to Juniper, Samsung shipped 52.1 million units in the second quarter to Apple's 26 million.

Samsung also doubled its lead over Apple quarter-on-quarter, with its flagship product, the Galaxy S3, playing a key role by racking up sales of 10 million in June. Earlier this week Apple released disappointing second quarter profits, in part because of softer than expected iPhone sales.

Analysts say many smartphone shoppers who are normally partial to Apple are simply waiting for Apple to introduce the iPhone 5, expected in the next couple of months. The new product, they say, will help iPhone sales rebound in the last quarter of the year.

Coming on strong

But Juniper said Samsung's recent success can't simply be blamed on Apple's temporary weakness. The company says the Galaxy S3 has been a phenomenal success but other Samsung phones have proved to be highly popular among consumers who prefer an Android phone.

Other competitors are struggling and falling further behind the two leaders. RIM, whose Blackberry was once the dominate smartphone, continues to try to cope with the touchscreen world. Juniper says Nokia has yet to show any clear indication it is benefitting from the switch to Windows Phone 7, with its hopes riding on Windows 8.

Juniper says Samsung's other Android competitors continue to fall short, with the resources needed to compete with Samsung’s marketing push halting HTC’s early promise and Motorola, distracted by the Google acquisition, lacking a strong presence in Western Europe.

All of this puts added pressure on Apple to come up with a major advance in its next iPhone. The iPhone 4S, introduced last fall, added Siri, the voice-activated personal assistant. While the feature has been a major selling point, there has been grumbling lately that the feature doesn't always work the way it's supposed to.

Juniper says the iPhone 5 will need to offer something splashy like Siri, especially if the device retains the 3.5-inch display size, which is now dwarfed by the Galaxy S3's 4.8-inch screen.

While Apple is waging war on Samsung in the courtroom, charging patent infringement, the battle between the two smartphone makers for the consumer's heart...

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FTC: Wireless Phone Bill Cramming Is ‘Significant Consumer Problem’

It’s bad -- really bad. 

In response to a request by the Federal Communications Commission (FCC) for comment, the Federal Trade Commission (FTC) says the “cramming” of unauthorized charges on wireless phone bills poses a serious problem for American consumers. In its comment, the agency also said wireless providers should be required to give customers the option to block all third-party charges from their bills. 

In its efforts to protect consumers against the cramming of unauthorized charges on their landline telephone bills, the agency has advocated for reforms to eliminate landline cramming.  

A growing problem 

With regard to wireless cramming, the comment notes, in the past few years the FTC and FCC have reviewed thousands of complaints about unauthorized third-party charges on wireless bills. The number of reported complaints undoubtedly understates the full extent of wireless cramming by a substantial amount. 

“Mobile cramming is likely to continue to grow as cramming schemes expand beyond the landline platform and mobile phones are more commonly used for payments,” the comment states. 

Many of the complaints involve recurring charges of just under $10 a month for “premium services” that provide trivia or horoscope information by text message to a consumer’s phone, the comment states.  

Consumers often report receiving a text message informing them of a subscription to a service of which they have never heard and that they never requested. 

A ban? 

The comment states that it would be premature to recommend a ban or default blocking of third-party billing as it did for landline phone bills in a separate comment to the FCC in October of last year.  

In contrast to landline third-party billing, which has been used almost exclusively by scam artists, the mobile billing platform has been used for some legitimate charitable activity; it also is a potential platform for consumers to fund mobile payments by placing those payments on their wireless bills, the comment states. 

However, it is unclear whether industry best practices have been consistently followed or are effective in stopping mobile cramming, the comment states.  In light of the significant number of mobile cramming complaints received, the FTC believes that some basic consumer protections are needed in the mobile billing space. 

“At a minimum, all wireless providers should offer their customers the ability to block all third-party charges.  Wireless providers should clearly and prominently inform their customers that third party charges may be placed on the consumers’ accounts and explain how to block such charges at the time accounts are established and when they are renewed.  And wireless providers should provide a clear and consistent process for customers to dispute suspicious charges placed on their accounts and obtain reimbursement.  The FTC believes that such measures should be mandated by law or regulation to ensure that consumers have baseline protections,” the comment states.

In response to a request by the Federal Communications Commission (FCC) for comment, the Federal Trade Commission (FTC) says the “cramming” of unauthorized...

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AT&T Wireless Moves To 'Shared Data' Plan

The tried and true system of paying for mobile services by voice minutes appears to be going by the wayside. AT&T Wireless says it will discontinue voice minute plans and instead move to a "shared data" system, much like the one Verizon Wireless announced last month.

Starting in late August, new customers will get unlimited voice and texting. Right now there are caps on those services, with charges incurred if you go over your limit. Some consumers may consider that a plus.

Balancing that out, however, will be a limited data plan. Not only will the amount of data be limited per billing cycle, all the devices on the account -- smartphones and tablets -- will share the data, even if there are multiple users on the account. If you exceed the allotted data, where will be an overage charge.

With AT&T joining Verizon in this move, it appears this is where the industry is going. Carriers are finding the promise of unlimited data is a hard one to keep.

Data at a premium

Smartphones gobble up bandwidth at unforeseen rates. Now that tablets have been added to the mix, the pressure is mounting on providers to force consumers to keep track of their data usage. Industry executives say each year will likely bring more types of connected devices.

“Today we think of people’s smartphones and tablets sharing a bucket of data," said David Christopher, chief marketing officer, AT&T Mobility. "But in the future we’ll see health care monitors, connected cars, security systems and other devices in the home all connected to the mobile Internet,” said Christopher. “Our Mobile Share plans are simple, easy and a great value for individuals or families with multiple mobile Internet devices.”

Customers can select one of the new shared data plans or choose one of AT&T’s existing individual or family plans. Current customers are not required to switch to the new plans, but can choose to do so without a contract extension. There are no changes to AT&T’s device upgrade policy, which means customers eligible to upgrade to AT&T’s best device price are not required to switch plans. The new plans will also be available for business customers.

New price structure

Under the new data sharing system, customers choose the amount of data they want each month; one gigabyte for $40 -- plus $45 for each smartphone -- all the way up to 20 gigabytes for $200 -- plus $30 for each smartphone. Going over the allotment will cost $15 per extra gigabyte.

You can add basic and messaging phones to your account for $30 per device. Connect laptops to your data plan for an extra $20 per month. Add a tablet or gaming device for $10 per month.

A family of four with four smartphones, two tablets and a laptop -- using 15 gigabytes per month of data -- would cost $320 per month.

While both AT&T and Verizon have cast the change as a benefit for consumers, many don't see it that way. After Verizon announced its change last month, current customers lit up message boards, unaware that they could keep their present unlimited data plans for the time being. Verizon responded with a press release telling customers not to "freak out."

While existing customers at Verizon and AT&T may keep their current arrangements, both carriers eventually expert to have everyone on a measured data plan. Verizon customers currently receiving unlimited data will be pushed to a shared data plan when they purchase a new, subsidized smartphone. The only way to avoid losing unlimited data is to keep your old phone or pay the full retail price of the phone when you finally upgrade.

The tried and true system of paying for mobile services by voice minutes appears to be going by the wayside. AT&T Wireless says it will discontinue voi...

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Virginia Dentist's 'Fix 311' Offers Cities a Quick Fix for Citizen Service Problems

They used to say you can't fight City Hall. Maybe they're right but Minh Tran thinks you should be able to help City Hall do its work more efficiently. Cities like Baltimore, Boston and San Francisco agree with him. 

Tran, a Virginia dentist, has developed a smartphone app called Fix 311. It's a quick, simple and inexpensive way for citizens to report problems -- anything from animal control issues to potholes -- to local governments. The app is free to citizens and all cities have to do is agree to accept the incoming information.

Many cities now use the 311 telephone number to take citizen calls but staffing is expensive and there's no easy way to verify the incoming information. 

Tran's app solves those problems.  It doesn't require any telephone operators and it uses the built-in GPS on iPhones and Androids to report the exact location of any problem needing government attention. Citizens can also use the phone's camera to snap a photo that accompanies that textual report.

New York City's Mayor Bloomberg is interested and Tran said he has an upcoming meeting to present the idea. Washington, D.C., is also interested, he said.  

Tran said the idea grew out of a pothole-reporting app he built a few years ago. It was quickly adopted by the Virginia Department of Transportation (VDOT), which promotes it heavily to motorists in the traffic-choked state.

One nation, one app

"My goal is to have the government of the entire United States take this system and use it," Tran said. "Right now, every city is trying to make their own app and it's kind of wasteful of taxpayers' money. Why does every city have to make its own when Fix 311 already works nationwide?"

Tran, who graduated from the Temple University School of Dentistry, practices in Falls Church, Va. Although he makes his liviing drilling teeth, Tran said he worked in network administration before dental school and continues to enjoy writing his own apps and programs.

The dental business being what it is, Tran said he is not trying to get rich with Fix 311 but just wants to provide a way for governments to provide better service to their citizens without wasting huge amounts of money to do so. 

His biggest frustration at the moment is that, although his app has won wide acceptance around the country, he hasn't been able to get any interest from Fairfax County, Va., where he lives and works.

"I've sent them letters and emails but no one responds," he said. "I don't know why."

They used to say you can't fight City Hall. Maybe they're right but Minh Tran thinks you should be able to help City Hall do its work more efficiently. Cit...

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Pop-Ups On Your Smartphone May Be Coming From Apps

Remember when pop-up ads used to fill your computer screen and slow your PC? The same thing may be happening to your smartphone.

Where are they coming from? A mobile security firm is pointing a finger at some of those apps you're downloading. Many of these apps are running ads from rogue ad networks.

They can even change settings on your device and steal your contacts without you ever being the wiser.

Where the action is

“Mobile has become the dominant computing platform in an incredibly short amount of time, changing the lives of people around the world and creating a booming economy for businesses and app developers,” said Kevin Mahaffey, co-founder of Lookout, a mobile security firm based in San Francisco.

Based on Lookout’s analysis, more than five percent of free apps have included aggressive ad networks, affecting millions of people. When you download one of these apps to your phone, you may be downloading a lot of other stuff you don't want. However, you're in the dark.

Lookout says you shouldn't be. The company has proposed a set of guidelines for both developers and ad networks to follow to increase transparency and protect consumers personal information. The idea is not to stifle advertising, since after all, that's what makes so many free apps free.

One set of rules

“People want to have confidence and trust that they’re not being compromised while on devices that have access to their most personal information,” said Jules Polonetsky, Director and Co-Chair of the Future of Privacy Forum. “For many years, desktop users were plagued with programs that triggered pop-ups, added unwanted toolbars, and changed homepages. These guidelines make it clear, while mobile marketing business models and practices are still developing, some practices are out-of-bounds. That’s good news for both consumers and responsible businesses.”

The Lookout guidelines cover requirements and suggested best practices in transparency and clarity of data collection; individual control over information collected; ad delivery and display behavior; collection and retention of personal or device-specific data; and secure transport of sensitive data.

Mahaffey says mobile ads aren't going away but if developers all follow a set of clear guidelines, the system will work for app developers, ad networks and consumers.

“In order for these great benefits to continue, everyone in the mobile ecosystem must respect individual privacy choices and hold user experience in the highest regard,” he said.

Remember when pop-up ads used to fill your computer screen and slow your PC? The same thing may be happening to your smartphone.Where are they coming fro...

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Big Brother Lives: More Than 1.2 Million Cell Phone Surveillances Last Year

Privacy advocates jaws dropped today as they read a New York Times report that cell phone companies processed more than 1.2 million law enforcement requests for customer records last year.

The disclosures came in response to letters from Rep. Edward Markey (D-MA) and Rep. Joe Barton (R-TX).

If that 1.2 million number sounds high to you, consider this: Sprint noted in its response that it received about 500,000 subpoenas last year and that “each subpoena typically requested subscriber information on multiple subscribers.”

Other carriers said they sometimes respond to subpoenas by providing all of the information from a cell tower or a particular area, thus giving police sensitive personal information on people the police haven't even asked about.

"Everyone whose phone has been used by a particular cell tower over a particular time period — likely hundreds or thousands of people — could have their data examined by investigators," said Chris Calabrese, an attorney with the American Civil Liberties Union (ACLU). 

And these dragnet data requests are on the rise, Calabrese noted.  Verizon estimates that over the last 5 years it has seen an average increase of 15% annually, and T-Mobile reported increases of approximately 12%-16%.  This has also led to at least some possible abuse; T-Mobile disclosed that in the last three years it has referred two inappropriate law enforcement requests to the FBI. 

Although they charge to fulfill the requests, the phone companies are not happy about it, noting that they must devote hundreds of employees to doing nothing but answering requests from law enforcement agencies.

"There is no statute that directly addresses the provision of location data of a mobile device to the government," a Sprint executive said in the company's response to Markey and Barton. "Given the importance of this issue and the competing and at times contradictory legal standards, Sprint believes that Congress should clarify the legal requirements for disclosure of all types of location information to law enforcement personnel."

There are two bipartisan bills -- both called the GPS Act -- in Congress that would do just that, Calabrese noted, by requiring law enforcement to secure a warrant based on probable cause before obtaining location information. 

Privacy advocates jaws dropped today as they read a New York Times report that cell phone companies processed more than 1.2 million law enforceme...

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Judge: Samsung Tablet 'Not As Cool' As iPad

Samsung, which is engaged in a number of patent disputes with Apple all over the globe, won a victory in Britain today. Sort of.

A British judge decided in favor of Samsung, saying Apple's claim that the Samsung Galaxy Tab stole the iPad's design was groundless. That's good news for Samsung, but the reason for the judge's ruling might not be.

When looking at both the Galaxy Tab and the iPad, Judge Colin Birss of Britain's high court said the Samsung tablet did not have “the same understated and extreme simplicity which is possessed by the Apple design. They are not as cool."

Ouch.

Despite the backhanded victory, Samsung welcomed the judge's ruling and said it looked forward to the day when the courtroom battles with Apple come to an end.

Head-to-head

Samsung and Apple are fighting on multiple fronts in the U.S. Last week a U.S. Court of Appeals rejected Samsung's motion to remove a ban on the U.S. sales of its Galaxy Nexus smartphone, made in conjunction with Google.

Two weeks ago a U.S. District Judge in California granted Apple a preliminary injunction blocking the sale of the Samsung Galaxy Tab 10.1 over the same issue addressed today by the British court. Samsung has appealed that ruling. 

Apple has sued to block Samsung from selling the Galaxy 10.1 in the U.S., and elsewhere, claiming it is "virtually indistinguishable from the iPad." In an earlier ruling, the court agreed with Apple but the judge has yet to file a final ruling.

In granting the preliminary injunction, the California judge required Apple to post a $2.6 million bond to compensate Samsung if the final ruling goes Samsung's way.

Meanwhile, don't be shocked if the British judge's finding that the Samsung tablet, which runs on the Android operating system, is “not as cool as an iPad” somehow finds its way into Apple advertising.

Samsung, which is engaged in a number of patent disputes with Apple all over the globe, won a victory in Britain today. Sort of.A British judge decided i...

Scientists Report Progress On Clothing to Recharge Your Phone

Two researchers at the University of South Carolina (USC) have demonstrated how one day, your clothing may be used to charge your cell phone or tablet.

If it works it could solve one of the more aggravating occurrences of modern life – having your cell phone battery die just before you make an important call. In the future, electronics may be part of your wardrobe.

"We wear fabric every day," said Xiaodong Li, a professor of mechanical engineering at USC. "One day our cotton T-shirts could have more functions; for example, a flexible energy storage device that could charge your cell phone or your iPad."

Ordinary T-shirt

Li and colleague Lihong Bao started with an ordinary T-shirt from a local discount store. They soaked it in a solution of fluoride, dried it and baked it at high temperature. They excluded oxygen in the oven to prevent the material from charring or simply bursting into flames.

When they were finished their T-shirt's fibers had been transformed from cellulose to activated carbon. The material was still flexible and could be folded without breaking.

Now, the once-cotton T-shirt was also a repository for electricity. By using small swatches of the fabric as an electrode, the researchers showed that the flexible material, which Li's team calls “activated carbon textile,” acts as a capacitor. Capacitors are components of nearly every electronic device on the market, and they have the ability to store electrical charge.

Supercapacitor

But the research team didn't stop there. They next coated the individual fibers in the activated carbon textile with “nanoflowers” of manganese oxide. Just a nanometer thick, this layer of manganese oxide greatly enhanced the electrode performance of the fabric.

"This created a stable, high-performing supercapacitor," said Li.

A supercapacitor you happen to be wearing, so you never have to look for an outlet.

According to Li, this hybrid fabric, in which the activated carbon textile fibers are coated with nanostructured manganese oxide, improved the energy storage capability beyond the activated carbon textile alone. The hybrid supercapacitors were resilient: even after thousands of charge-discharge cycles, performance didn't diminish more than 5 percent.

"By stacking these supercapacitors up, we should be able to charge portable electronic devices such as cell phones," Li said.

That's all well and good, but Li and his team didn't say how comfortable that once-cotton T-shirt was after going through the process. But one scientific breakthrough at a time.

Two researchers at the University of South Carolina (USC) have demonstrated how one day, your clothing may be used to charge your cell phone or tablet.If...

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Court Blocks Sale Of Galaxy 10 Tablets In U.S.

Don't expect to purchase Samsung's Galaxy Tab 10.1 in the U.S. for a while. A U.S. District Judge in San Jose, Calif., has granted Apple a preliminary injunction against the device in Apple's long-running patent dispute with Samsung.

Samsung said it would immediately appeal the decision of Federal Judge Lucy H. Koh.

Apple sued to block Samsung from selling the Galaxy 10.1 in the U.S., claiming it is "virtually indistinguishable from the iPad." In an earlier ruling, the court agreed with Apple but the judge has yet to file a final ruling.

In granting the preliminary injunction, Koh required Apple to post a $2.6 million bond to compensate Samsung if the final ruling goes Samsung's way. 

Apple filed suit last July accusing Samsung of violating its patent for the iPad. The case doesn't just center on the device's electronics, but also on its design.

Light & thin

Upon its release last year the Samsung Galaxy Tab 10.1 won praise from technology reviewers, who called it "as thin as the iPad 2 and even lighter." It runs the Android operating system and features a three-megapixel back camera and two-megapixel front camera, with premium audio.

The court's decision, at least temporarily, removes one of the iPad's main competitors from the marketplace. It also removes the one that many saw as having the best chance to overtake Apple in the tablet wars.

"Apple sought a preliminary injunction of Samsung's Galaxy Tab 10.1, based on a single design patent that addressed just one aspect of the product's overall design," Samsung said in a statement. "Should Apple continue to make legal claims based on such a generic design patent, design innovation and progress in the industry could be restricted." 

Don't expect to purchase Samsung's new Galaxy Tab 10.1 in the U.S. for a while. A U.S. District Judge in San Jose, Calif., has granted Apple a preliminary...

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Feds Bust Counterfeit Cell Phone Operation

More than 32,000 bogus cell phones and other electronics were seized and three people were arrested as federal agents broke up a counterfeit trafficking ring.

Arrested following an extensive investigation conducted by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), U.S. Customs and Border Protection (CBP) and the Nassau County Police Department (NCPD) were Qiang Chen, 44, and Ye Zhang, 43, both of Syosset, N.Y.

They were conducting business as AMAX International Group Inc. Robert Eisenberg, 28, of Manhattan was also arrested. He conducted business as Cellular Wholesale USA Inc.

Chen is charged with five counts of trademark counterfeiting in the second degree. Zhang is charged with two counts and Eisenberg with one. Each defendant faces up to four years in prison if convicted. The charges could be upgraded to trademark counterfeiting in the first degree depending on the ultimate number of counterfeit items and their retail value.

Substandard product

"The defendants in this case allegedly sought to profit by providing the public with a substandard product. They also robbed manufacturers of their intellectual property, and robbed consumers of quality they come to expect and demand, said James T. Hayes Jr., special agent in charge of HSI New York.

"These scam artists knew that these phones were junk, knew that they were illegal and knew that they were duping their customers, and the only thing they cared about was how much cash they could stuff in their pockets," said Kathleen Rice, Nassau County district attorney.

The investigation

The investigation began last January when CBP officers at John F. Kennedy International Airport (JFK) performing a random inspection of a shipment of cellular phones from China grew suspicious that the phones were not authentic due to their appearance and because they were shipped loose in cardboard boxes with no packaging.

HSI special agents removed several phones from the shipment and sent them to the respective companies according to their labeling -- such as Motorola or HTC -- for testing. Analysis by the real manufacturers revealed that these phones were counterfeit, with numerous inconsistencies in the phones' designs, inferior technology and parts used in their construction.

HSI special agents enlisted the assistance of the Nassau County District Attorney's Office in March, and allowed the shipment to reach its intended recipient, but flagged both the sender and recipient. Eight more pallets of counterfeit cell phones were sent via China Air to the same recipients between January and June 2012.

HSI and NCPD officers tracked the phones from the airport to two warehouses in Plainview, N.Y., and Hicksville, N.Y 

Search warrants were executed at the warehouses, as well as on a shipment at JFK, resulting in the seizure of more than 32,000 cell phones with a retail value of more than $2 million. Forty counterfeit Apple iPads and various accessories -- along with $539,710 in currency -- was also seized.

The recipients would re-package and sell the counterfeit phones online or through legitimate cell phone wholesalers who were likely unaware they were receiving counterfeit goods.

Business records will be analyzed by law enforcement to determine what companies were duped by the counterfeit phones. Those companies will be contacted and warned to investigate their inventory for potential counterfeit products.

More than 32,000 bogus cell phones and other electronics were seized and three people were arrested as federal agents broke up a counterfeit trafficking ri...

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Why Your Phone Battery Is Always Dead

Wonder why your smartphone battery runs down, even when you aren't using the device? Chances are, it's not getting enough sleep.

Because smartphone functions are energy hogs, reducing battery life in normal operations, manufacturers have aggressively built in “sleep” functions. When the device detects no activity, the smartphone goes into sleep mode to save power.

But it's not entirely asleep. Various functions need to run in the background, such as checking with the email server to see if any new messages have arrived. While the phone is sleeping, an app springs into action every now and then and wakes up the phone just to see if it needs to perform a function.

And therein lies the problem. Under normal circumstances the app will do its job, then let the phone go back to sleep. But Charlie Hu, a Purdue University professor of electrical and computer engineering, says sometimes there's a glitch in the software and the phone stays awake.

Silent battery killer

"These energy bugs are a silent battery killer," Hu said. "A fully charged phone battery can be drained in as little as five hours."

Researchers have now proposed a method to automatically detect a new class of software glitches in smartphones called "no-sleep energy bugs."

Smartphone manufacturers have designed in application programming interfaces, or APIs, available to app developers. The developers insert the APIs into apps to instruct the phone to stay awake long enough to perform necessary operations.

Bad code

"App developers have to explicitly juggle different power control APIs that are exported from the operating systems of the smartphones," Hu said. "Unfortunately, programmers are only human. They make mistakes when using these APIs, which leads to software bugs that mishandle power control, preventing the phone from engaging the sleep mode. As a result, the phone stays awake and drains the battery."

Hu and his team of researchers are working on a tool to automatically detect the presence of these power-wasting glitches in smartphones.

Wonder why your smartphone battery runs down, even when you aren't using the device? Chances are, it's not getting enough sleep.Because smartphone functi...

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Verizon Wireless Formally Unveils New Pricing Plan

Verizon Wireless has made it official, rolling out its new “Share Everything” pricing plan that will replace its current plan structure for new customers, beginning June 28.

The carrier is, in effect, providing breaks on lower-demand services while exacting a premium for the one service all users seem to crave – data. Under the plan consumers will pay a monthly access fee for all smartphones, basic phones, jetpacks/usbs, notebooks and tablets. For that monthly access fee, the consumer will gets unlimited voice and texting.

Paying for data

Consumers rate Verizon Wireless

However, all data usage will be measured and shared by all the devices on the account. One gigabyte of data per month will cost $50, with allotments up to 10 GB for $100 per month.

All device users on the account would have to stay cumulatively within their monthly allotment or the account would be billed for overage charges.

Verizon Wireless points out that tablet users stand to benefit under the change. Currently if a subscriber wants to add 3G or 4G access for a tablet, they must pay $30 a month for a data plan. That has resulted in some consumers putting off a tablet purchase, or has sent them to another electronics retailer where they purchased, at a lower price, a Wi-Fi only tablet.

Under the new plan subscribers would pay an additional $10 a month for adding a tablet. The tablet's data usage would then come out of the plan's monthly allotment. To Verizon Wireless, it's the wave of the future.

New standard

"Share Everything Plans are the new standard for wireless service,” said Tami Erwin, vice president and chief marketing officer for Verizon Wireless. “They are simple; customers no longer have to think about their voice and message plans, because both are unlimited.”

True, but they will have to think long and hard about data usage. 10 GB sounds like a lot of data, but it might not be in a family of four with two teens who, between smart phones and tablets, watch a lot of video, listen to streaming music and surf the web.

The costs under the new Share Everything plans are as follows:

  • Smartphones - $40 a month
  • Basic phones - $30 a month
  • Jetpacks/USBs/Notebooks/Netbooks - $20 a month
  • Tablets - $10 a month

Data charges

  • 1 GB of data - $50 a month
  • 2 GB of data - $60 a month
  • 4 GB of data - $70
  • 6 GB of data - $80
  • 8 GB of data -$90
  • 10 GB of data - $100

Verizon Wireless has made it official, rolling out its new “Share Everything” pricing plan that will replace its current plan structure for new...

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Collect Calls From Jail Are Costly

In this era of cell phone plans that treat local and long distance calls the same, it's easy to forget that long distance “collect” calls, in which the receiving party pays the charge, can be costly.

Indeed, the whole idea of a collect call, made from a pay phone (remember those?) now seems quaint. Quaint, maybe, but also costly. They are very expensive if they are made from jail, as Michael, of Lusby, Md., recently discovered.

“My Verizon bill contained a $70.48 item from Zero Plus Dialing (Network Oper Svcs) for a 15 minute collect call,” Michael wrote in a ConsumerAffairs post. “From what I can tell, my son was incarcerated in a county facility about 30 miles away and the charge in question is associated with a call from him. ZPDI was willing to give me a $28.00 credit, which I turned down. Even with the credit, I am being charged about $2.83 per minute. There was no mention of a rate charge when asked if I would accept the collect call.”

Rules for collect calls

There should have been. When a consumer answers the phone and an operator asks them if they will accept a collect call from an individual, they have no way of knowing the rate. It can vary wildly, especially if it is being made by someone held in a correctional facility.

The Federal Communications Commission requires that, when an inmate places a collect call, each Operator Service Provider (OSP) must identify itself to the person receiving the call before connecting the call. Each OSP must also disclose, before connecting the call, how the receiving party may obtain rate quotations. Additionally, the OSP must permit the receiving party to terminate the telephone call at no charge before the call is connected.

These rules apply only to interstate OSP calls -- meaning calls from one state to another. Most states, however, have similar rules for intrastate OSP calls -- calls that occur within a single state.

Collect calls are much rarer than they once were and usually carry a very high rate per minute. But the rate of a collect call from a correctional facility is usually even higher.

Why are the calls so expensive? Very simply, phone companies charge more for a collect call from prison because they can. Prisoners have no alternative for calling friends and family. You might say they are a captive audience.

The jails get a cut

State and county governments, which operate jails, often receive a portion of the proceeds from these calls, in exchange for awarding the contract. While policymakers in some states have questioned these practices, in an era of shrinking state budgets, correctional facilities have generally fought to preserve the arrangement.

Several states -- including Nebraska, Missouri and New York -- have reduced or eliminated commissions and have passed the savings along to families and friends of those incarcerated, according to the Center for Constitutional Rights.

“The high rates for prison phone calls are being paid by the families of incarcerated people, who are already doing what they can to help their loved ones become law-abiding citizens,” the group says on its website. “The high cost of prison phone calls hinders these efforts.”

To provide options for inmates, some private companies have set up telephone relay units in the locality of a correctional facility. An inmate may call the unit as a local call, which is then forwarded to the inmate's family using a low-cost long-distance service.

Many correctional systems have prohibited inmates from using these services, citing the need to tightly control and monitor inmate communications. That's why inmates can't take cell phones behind bars.

Meanwhile, if you receive a collect call – especially from someone in jail – understand that the per-minute rate will be very high and conversation lengths should reflect that reality.

In this era of cell phone plans that treat local and long distance calls the same, it's easy to forget that long distance “collect” calls, in w...

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Samsung Galaxy S III Promotes Sharing, Streamlining

There's growing buzz about a new smartphone even though it's not made by Apple. The Samsung Galaxy S III, which runs on Google's Android platform, can be ordered from Sprint today and AT&T and Verizon starting tomorrow, June 6. T-Mobile will also offer a version of the device.

The Galaxy S III features options for sharing and streamlining many of life's tasks. For sharing, Samsung's AllShare Play, Group Cast and Share Shot functions help users share photos with a group of friends or a presentation with co-workers. S-Beam allows easy transfer of large files from one Galaxy S III to another by touching the backs of the two devices.

SVoice features natural language recognition to allow customers to control applications and services with words instead of touch. The Galaxy S III also includes simple to use camera features like Best Shot to choose the best image from a series when taking a photo.

"The addition of the Samsung Galaxy S III to our portfolio of 4G-LTE devices gives our customers another truly cutting-edge smartphone to choose from," said Jeff Bradley, senior vice president, Devices, AT&T Mobility. "With an exclusive red color this summer and the power of the nation's largest 4G network, AT&T delivers the best wireless experience for Galaxy S III fans."

Specs

The Galaxy S III has a 4.8-inch HD Super AMOLED display and runs Android 4.0 Ice Cream Sandwich. It allows users to watch a video while texting friends or surfing the Web at 4G LTE speeds with Pop Up Play. Videos can be played in a small window while customers use the rest of the display to complete other tasks such as typing emails, organizing calendars and updating their social networks.

Galaxy S III customers can share live video broadcasts using the Color app, which Verizon says is an exclusive feature.

The Galaxy S III has similar pricing on both networks. The phone will sell for $199.99 for the 16 GB model after a two-year service agreement. AT&T stores will also feature a 16 GB MicroSD card at $3  for a total of 32 GB for under $238.99.

At Verizon, the Galaxy S III will be available in 16 GB and 32 GB models for $199.99 amd $249.99 respectively with a new two-year customer agreement. Customers will also have the choice of the Galaxy S III in two colors, Marble White or Pebble Blue.Promo

There's growing buzz about a new smartphone not made by Apple. The Samsung Galaxy S III, which runs on Google's Android platform, can be ordered from Sprin...

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AT&T Introduces New International Roaming Packages

Using your cell phone when you leave U.S. borders can be expensive. ConsumerAffairs has received many complaints from consumers over the years who encountered "bill shock" on their return from a trip.

Now, AT&T Wireless says it is introducing new international roaming packages it says will do away with bill shock. Beginning June 1, the updated packages allow customers to enjoy the convenience of data access on their AT&T device while traveling abroad in more than 130 countries at a significant cost savings.

In April, the Federal Communications Commission (FCC) launched a bill shock Web site, alerting consumers to the charges imposed by various carriers.

AT&T's new international data package tiers are:

  • 120 MB Data Global Add-on package for $30/month
  • 300 MB Data Global Add-on package for $60/month
  • 800 MB Data Global Add-on package for $120/month
  • The overage rate for all packages is $30 for 120MB.

The company said the three international data packages are designed to give customers the freedom and flexibility to use their smartphone, tablet or laptop to stay in touch when they travel without incurring hundreds, or even thousands of dollars in roaming charges.

All the comforts of home

“We want our customers to experience the same level of wireless connectivity while traveling abroad as they do at home,” said Mark Collins, senior vice president, Data and Voice Products, AT&T Mobility and Consumer Markets. “Whether they choose to surf the Internet, use GPS on their device, respond to emails, or update their social network status, we are making it more affordable than ever for them to enjoy data services internationally.”

AT&T already operates voice service in more than 225 countries. The company said its customers can travel around the world and make and receive calls on the same wireless number they use at home.

Before traveling outside the U.S., AT&T suggests visiting an AT&T store to determine if your wireless device will work in the country you are visiting. For example, to roam in Japan or South Korea, a 3G device that operates at 2100 MHz is required.

Also, verify that international roaming service is activated or, if you prefer, blocked.  

Using your cell phone when you leave U.S. borders can be expensive. ConsumerAffairs has received many complaints from consumers over the years who encounte...

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Netflix App Designed to Prevent Mobile Data Overages

The Internet offers hours and hours of video content that consumers can view on their smartphones. But unless you have an unlimited data plan - and those are becoming quite rare these days - your movie-watching can put you over your data limit.

For example, most measured data plans now offer 2 GB or 5 GB of data per billing cycle. If you go over that amount, an overage charge kicks in, resulting in a higher bill.

To address that issue Netflix is updating its iOS app so that consumers watching video on their Apple devices, over 4G and LTE networks can limit their streaming. They can choose a setting so that they only watch video content when they are connected through a Wi-Fi network. That way, they can't use up all their allotted data from their carrier.

The app will work on the iPhone, iPad and iPod touch.

In addition the company said the updated player includes the following features:

  • A look and feel more consistent with the Netflix browse experience in our mobile applications 
  • Larger, more separated play controls appropriate for how people use these devices 
  • Better exploration during video play with thumbnail images on the scrub bar 
  • Easy access for audio/subtitles settings and other existing player features 

 For subscribers in Canada Netflix said it also added easier "do not share" capability for Facebook-connected members.

In a blog posting, the company said it plans to issue similar updates to its app for Android devices.

The Internet offers hours and hours of video content that consumers can view on their smartphones. But unless you have an unlimited data plan - and those a...

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Survey: Apple Brand Suffers Without Steve Jobs

Steve Jobs wore a lot of hats. Designer, businessman, animator, inventor. But most associate him as being Apple's co-founder, as he was the face, the pitch person and the catalyst to giving people a bevy of fun, practical and cool looking gadets.

The question is how do consumers perceive the Apple brand now that Jobs is gone? Do they have the same amount of confidence in Apple products? A new survey finds that 11 percent say their perception of Apple have worsened -- results that are at odds with a ConsumerAffairs analysis of 36 million consumer comments on social media over the last year. 

Earlier this month, iGR conducted a survey among U.S. consumers that focused on today's gadetry craze, like how good are WiFi signals outside of the home? Or how mobile handsets, smartphones and tablets are really used by today's consumer. But one of the more intresting survey questions was how participants viewed the Apple brand since Steve Jobs is no longer at the company's healm.

The survey showed that only one percent of respondents said their image of Apple had "much improved" since Jobs passed away, about 3.5 percent said their perception of the company improved a small amount, and 84 percent said their image of the company had not changed at all.

The survey also reported that 9.4 percent of respondents said their view of Apple has gotten worse, and 1.7 percent said their perception of Apple had "greatly worsened."

The ConsumerAffairs analysis, however, found no significant change in the net consumer sentiment, which has hovered around the 50% positive mark for the last year, with a slight dip in October when consumers expressed sadness over Jobs' passing.

Casual users?

The question is though, whether the 11 percent of participants that considered the Apple brand worse off after Jobs died, are hard-core Apple users. It is typical for casual users of a brand to merely associate the success of that brand with one person, one product, or one era or period of time. This is the reasoning Apple executives are using to justify the percentages of respondents who have a lower view of the mega-company.

"iGR believes this is important for Apple's future. While a significant number of people said that their perception of the company had worsened, the core Apple user base seems to be unmoved in their views of the company," said Iain Gillott, president and founder of iGR, a market research consultancy focused on the wireless and mobile industry. "While they may mourn the passing of Jobs, it seems that the Apple faithful are staying put."

The survey also went on to show that  those with a worsening image of Apple were 12 to 18 percent more likely to be men over the age of 45. Also, the 11 percent that had a worsened perception of Apple are more likely to have higher household incomes, higher education, and married.

In closing, the survey went on to show that 12 percent of the unhappy Apple consumers are more likely to prefer Android smartphones, made by Samsung or Motorola.

Steve Jobs was a man who adorned a multitude of hats. Designer, businessman, animator, inventor. But most associate him as being Apple's co-founder, as he ...

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Accident Caused by Driver, Not Texter, Judge Rules

Just about everyone knows texting while driving is dangerous but what responsibility does the person on the other end of the text have?

None, a New Jersey judge has ruled. 

Morris County Superior Court Judge David Rand dismissed claims against Shannon Colonna of Rockaway, N.J., saying she bore no legal responsibility for an accident that happened after she texted Kyle Best, who was then 19, the New Jersey Law Journal reported.

Best was returning from teaching a swimming class on Sept. 21, 2009, when he got Colonna's text. While answering it, he lost control of his pickup truck, crossed the double yellow line and hit David and Linda Kubert on their motorcycle. Each lost a leg as a result of the accident.

The Kuberts argued that Colonna should share responsibility because she knew or should have known that Best was driving when she sent the text. 

But Judge Rand said he could find no precedent for such a claim and dismissed the Kuberts' civil suit against Colonna. Their case against Best remains intact. 

Just about everyone knows texting while driving is dangerous but what responsibility does the person on the other end of the text have?None, a New Jersey...

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Verizon Offers New Video Service and Global Roaming to Its Users

Verizon has now tossed its hat into the video and mobile device ring, releasing a service it calls Viewdini. The service will allow users to watch any type of video movie or television show on their mobile device.

The service uses Verizon's Wireless' 4GLTE network, providing access to viewable content from a host of vendors such as Netflix, Hulu Plus, mSpot and cable operators. More video sources are soon to be added, as well as Verizon Fios the company says.

"Verizon Wireless has the network to deliver the video choices our customers want with the quality and speed customers demand," said Dan Mean, CEO of Verizon Wireless. "Working with a wide range of providers, we're giving our customers a simple and intuitive way to find shows, movies and other videos from the sources they have relationships with and discover new sources of video as well."

Verizon's new video component was first announced at the National Cable and Telecommunication Association annual conference, and creators say they've made it easy for users to navigate a wide array of movie titles and other content.

Search by title

Users can search for a video by title, actors name or they can search by topic. Once a video is selected, the Viewdini service will tell the customer if the video can be streamed at no charge, if it costs, or if it can be viewed through rental or purchase.

Those with the the 4GLTE Android will be the first ones able to use the service, and Verizon said it will be adding other operating systems in the near future.

Meanwhile, Verizon has also announced that it added global roaming capabilities to four of its phones. Motorola's DROID Razr, DROID Razr Maxx and DROID 4 and HTC'sRezound, will all have a global roaming function added. The company plans to notify its users through digital notification concerning when the global feature will be accessible. 

Customers will now be able to use their smartphones in 220 countries, instead of purchasing annoying calling cards or buying cheap disposable cell phones.

Verizon has now tossed its hat into the video and mobile device ring, releasing a service it calls Viewdini. The service will allow users to watch any type...

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Satellite Communicator Now Accessible Through iPhone

It's very easy to wander out of range of a cell tower and discover you have no bars. It's even easier if you happen to be hiking a mountain trail or sailing on the ocean.

Last fall DeLorme, a satellite communications company, introduced a two-way messaging device – the inReach – providing those in the remote wilds a means to send out an SOS message and summon help.

Now the company has introduced an app, allowing consumers with an iPhone, iPad or iPod touch to transform their devices into a global two-way satellite communicator for use outside traditional wireless coverage areas.

While you can't make phone calls, users can send and receive messages to and from cell phones, email contacts and other inReach users, anywhere in the world. And, if the mood strikes you as you reach the summit of a mountan, you can also post messages to Facebook and Twitter.

Chat anywhere

"DeLorme is now extending the unique inReach two-way SOS, personal communication, and tracking capabilities to a far broader universe of users worldwide," said Mike Heffron, DeLorme CEO. "This underscores our commitment to making affordable two-way satellite communication solutions available to as many people as possible."

The inReach devices start at $249 and can send out an SOS message to a monitoring station. GPS allows others to track your movements in real time.

The iPhone app provides expanded data capability, allowing you to send and receive email and text messages. Service plans start at $9.95 a month.

Though the company is not promoting this particular use, the app can probably be used when traveling outside the country, when sky high roaming charges normally kick in. Consumers may be able to bypass roaming charges by using inReach to send and receive data.

DeLorme calls inReach the “first consumer-affordable satellite communicator with two-way SOS and personal text messaging, message delivery confirmation, Follow-Me/Find-Me Tracking and Location, and global coverage.” In addition to the Apple app, there is an existing app for Android devices.

It's very easy to wander out of range of a cell tower and discover you have no bars. It's even easier if you happen to be hiking a mountain trail or sailin...

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Cable Giants Lash Their Wi-Fi Networks Together

Five of the nation's largest cable TV networks are combining their Wi-Fi networks into a single network with over 50,000 hotspots, offering their high-speed Internet customers broader access to Wi-Fi outside their home markets.

The effort is a slap at Verizon, AT&T and other telephone companies whose cellular broadband wireless services are expensive and, increasingly, limit the amount of monthly data they allow. 

Bright House Networks, Cablevision, Comcast, Cox Communications and Time Warner Cable say it's the largest and most inclusive WiFi sharing effort among cable operators to date.

"This effort adds great value to our high speed Internet customers by providing free wireless Internet access on all of their WiFi enabled devices in our markets and additional areas across the country," said Nomi Bergman, President of Bright House Networks.

Superior approach

"We believe that WiFi is a superior approach to mobile data, and that cable providers are best positioned to build the highest-capacity national network offering customers fast and reliable Internet connections when away from their home or business broadband service," said Kristin Dolan, Cablevision's senior executive vice president of product management and marketing. "We've built an extensive WiFi network in our own service area, and see real value and potential in other leading providers joining with us to extend that connectivity to major markets across the country."

The first implementation is already complete as Bright House Networks and Cablevision launched "CableWiFi" alongside their branded WiFi networks in the New York City area and central Florida earlier this month. Over the next few months, the "CableWiFi" network name will be added by each of the cable companies to their branded WiFi hotspots.

The participating cable operators currently offer more than 50,000 WiFi hotspots located in New York City and the surrounding Tri-State area, Los Angeles, Tampa, Orlando, and Philadelphia. The operators also plan to continue to grow the number of WiFi hotspots and expand into several additional cities.

In early 2010, Cablevision, Comcast and Time Warner Cable entered into an agreement allowing their customers in New York City, Long Island, New Jersey, Philadelphia and Connecticut to access WiFi hotspots offered by each operator in these areas.

Five of the nation's largest cable TV networks are combining their Wi-Fi networks into a single network with over 50,000 hotspots, offering their high-spee...

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Verizon to Phase Out 'Grandfathered' Unlimited Data Plans

Consumers rate Verizon Wireless

Verizon Wireless has rewarded its early and longtime customers by "grandfathering" them into their $30 a month unlimited data plans with the carrier switched to tiered pricing. But that perk is going away.

At some point in the future, Verizon's 3G customers on a grandfathered unlimited data plan will lose that treasured status when they buy a new phone that runs on the company's 4G LTE network. Verizon will then steer them toward a "shared" data plan, for either families or small businesses.

For example, Verizon currently offers a family plan for voice services. All the phones on the plan share the allotted minutes and as long as the total used stays within the allotment each month, there are no overage charges. Exceeding the allotment can be very expensive.

Verizon Wireless plans a similar system for data. All users on the plan use the same pool of data. As long as total usage doesn't go over the allotment, there are no extra charges at the end of the month.

The change was announced Thursday at an investors' conference by Verizon Communications CFO Fran Shammo, who disclosed the new strategy.

"Everyone will be on data share," Shammo said.

A clarification

Verizon later issued a clarification of Shammo's remarks, saying if you now have an unlimited data plan with Verizon Wireless, you can keep it as long as you keep your current phone. Only when you buy a new, subsidized phone will you have to move to a shared data plan. The company has not disclosed how that service will be priced.

As expected the announcement has not gone over well with Verizon Wireless customers currently on an unlimited data plan. On message boards and social networking sites, many consumers have said they only remained with Verizon because of the unlimited data plans.

"Once that runs out, there is nothing holding me back to get with another provider that actually has good handsets," a poster named JJ wrote.

Shammo made the disclosures at a JP Morgan conference for investors, and there the news was very well received. Verizon Wireless stock is up 1.2 percent since the announcement.

Lots of goodwill

You might think that consumers would rise up and take their mobile business elsewhere, but don't count on it. A ConsumerAffairs sentiment analysis of about 390,000 postings on social media finds Verizon Wireless with a pretty substantial reservoir of good will.

While there are scattered grumblings about rates, pricing and billing, Verizon customers seem convinced that the company's network really is superior to the competition.

 It must also be admitted that Verizon's strategy of yanking the unlimited rate plan only when individual consumers upgrade makes it less likely that there will be masses of angry smartphone users taking to the streets.

Verizon Wireless has rewarded it early and long-time customers by "grandfathering" them into their $30 a month unlimited data plans with the carrier switch...

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Senate Bill Sets Penalty for Trafficking in Stolen Cell Phones

The U.S. Senate will soon take up legislation that would impose a five-year criminal penalty for tampering with the unique identification number of a cell phone as part of a crackdown on growing cell phone theft.

In April the New York Police Department and Federal Communications Commission (FCC) announced establishment of an integrated database of unique cell phone identifiers, known as International Mobile Equipment Identity (IMEI) numbers, to allow cell phone companies to permanently disable stolen cell phones once they are reported stolen.

Sen. Charles Schumer (D-NY) introduced the bill to increase the penalty for trying to alter a cell phone's unique ID number as part of that crackdown.

Black market for smartphones

“As part of the effort to shut down the black market for stolen iPhones, we must make it abundantly clear to would-be thieves, if you try to alter a stolen cell phone to get around the ban, you will face severe consequences,” said Schumer. “This legislation will help dry up the black market for stolen cell phones by making the consequences for peddling in this illegal business so severe, thieves would think twice before doing so.”

Schumer was among those calling for the national database among carriers, but said it would be much more effective if there were tougher penalties for those who traffic in stolen phones. His measure won immediate support from CTIA-The Wireless Association President and CEO Steve Largent.

"CTIA's members are committed to protecting their customers and their wireless devices from theft," Largent said. "We are pleased to support Senator Schumer's legislation and believe it will be an important tool in the effort to combat the theft of wireless devices. We hope Congress moves quickly to pass this important bill."

Deactivating SIM cards

Currently, when cell phones are reported stolen, many American cell phone companies only deactivate the phone’s “SIM” card, which is the account data storage component of the device. While deactivation of a SIM card does not allow for the device to be used with existing data and account information, SIM cards are easily removed and replaced, allowing stolen phones to be easily resold on the black market.

In April the industry agreed to work together with the FCC and establish a nationwide, interconnected database that will allow the carriers to share information on stolen cell phones across networks and ban the use of cell phones reported stolen.

Schumer’s bill, the Mobile Device Theft Deterrence Act of 2012 will add criminal penalties of up to five years for tampering with cell phones in order to circumvent the service ban on a stolen phone.

According to the New York Police Department, 42 percent of all property crimes of individuals in New York City in 2011 involved a cell phone.  

The U.S. Senate will take up legislation that would impose a five year criminal penalty for tampering with the unique identification number of a cell phone...

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Who's Calling? New Caller ID App May (or May Not) Know

It's really annoying when we miss an unfamiliar phone call. It's even more annoying when the person on the other end actually reaches us, but then tries to sell us something or want us to fill out some sort of survey. Who are these people (in my best Jerry Seinfeld voice)? Where are they calling from? And how can I track this information?

The ReverseGenie App claims to be able to answer these questions for you, by allowing users to conduct a reverse phone search from their Android or iPhone. By using the application, annoyed call recipients can quickly try to learn the caller's name, email address, and cell phone number. They can also receive free unlimited reverse email searches with links to the caller's Facebook profile. The app also comes with a free caller ID. 

In the past, smartphone users would have to wait until they're in front of their lap or desktop to conduct reverse searches, but now they can download the app directly onto their mobile device and pull the wanted details of those obscure and unwanted calls.

The new application works by users entering the phone number of the person they're searching for, or by simply selecting a number from their call history to pull up more background information. Those interested can download the app for free and it comes with unlimited use.

Users can also immediately see their recent calls, click an address to get directions from Google Maps, and keep up to date information in their phone records with real-time updates.

After reverse search provides a name of someone calling your phone, ReverseGenie.com can pull additional information on that person such as their IP address, gender, service provider, and physical address. It's like bothered callers now have their own private investigator living inside their phone.

Although only recently released to the public, the app has gotten really positive reviews from both Android and iPhone users, and has been widely preferred over other caller ID applications. So prank callers, telemarketers, and creepy people beware. The people have been armed with a needed and timely bit of technology.

How well does it work?

But really, glowing user reviews aside, how well does this little tool work? The meanies in the ConsumerAffairs backroom mashed on it a bit to find out. Here's their report:

It works about as well as you'd expect, namely not very well, since it's based on records that are incomplete, often incorrect and sometimes misleading by design. 

First we inserted our own cell phone number -- 213-500-xxxx -- and got the astonishing information that it was registered to <name unknown> and that it was a number issued by Verizon in Los Angeles. OK, no surprise there.

Next, we entered a landline phone number from our DC-area office -- 703-359-xxxx.  It came up with three listings. One was spot-on, with the correct name, street address, etc. The other two were completely inaccurate. They were identical and each was a name we'd never heard of at an address in an office park a few blocks away.  Maybe it was someone who'd had the number before us?

Next we entered one of our Google numbers -- 213-915-xxxx. Reverse Genie pinned it down to Los Angeles but that was all the genie could discern.

So much for phone numbers. We next inserted an email address (yes, it will look up emails too): xxx.xxxx@gmail.com and got the startling answer that the address was registered to Google in Mountain View, Calif.

Next we entered a corporate email address that we know to be a DC company. Genie slithered out of his or her lamp and informed us the name was unavailable but confidently asserted the address was registered to InMotion Hosting in Santa Monica, Calif.

Hmmmm ... so, Genie was batting about 20 percent on this outing. If you look carefully, it's obvious Genie is not just providing information, it's also gathering it. Each time you ask for information on a number or email address, it gives you what it has then asks you to contribute what you know, including whether the call or email was spam. This could be a helpful way to build a database if everyone gave honest and correct answers. Otherwise, it's just another bulging mass of digits that don't add up to much.

It's really annoying when we miss an unfamiliar phone call. It's even more annoying when the person on the other end actually reaches us, but then tries to...

Couple Dies For Lack of a Cell Phone Signal

Many people think their cell phones will work just about anywhere. That misplaced faith can sometimes have tragic consequences, as in the case of Arthur and Madeleine Morris, an elderly New York City couple whose vehicle fell down an embankment near the end of vacation home driveway in New York’s Catskills region.

When it became clear their Ford Focus was stuck, the couple made five attempts to call for help. But calls to 911, Mrs. Morris' son and a neighbor all failed to connect, thanks to the spotty cellular service in the mountainous region. Investigators say that, finally giving up on the phone, Arthur Morris, 88, tried to climb out of the vehicle but became wedged between the door and the ground. He soon asphyxiated.

Mrs. Morris, 89, managed to climb out of the car but still could not get her phone to work. She was able to walk to the home of their nearest neighbors, only to find them not at home. She covered herself with a tarp but died of hypothermia when nighttime temperatures dipped into the 40s, local newspapers reported.

CNET News article said the couple's grandson had bought them a phone from AT&T, "in the belief that a network from such a large carrier would offer the best chance of a signal in that remote area. But locals reportedly say no carrier has much of a signal in those mountains.”

AT&T responded to the CNET article with a brief statement:

“Our thoughts and sympathies go out to the Morris family during this extremely difficult time. Wireless coverage in mountainous and remote areas is an industrywide challenge, and AT&T, along with other carriers, are continually striving to improve service levels in those areas.”

AT&T's striving aside, it's a fact of life that cell phones do not work well in any mountainous area, sparsely populated or not.  They are, after all, little high-frequency radios that rely on line-of-sight transmission.  If the phone can't "see" a tower, it's not going to get a signal.  Mountainous areas of Los Angeles, like Pacific Palisades, despite being densely-populated to this day have spotty cell phone service, something residents have learned to live with.

Perhaps the best advice for anyone who routinely travels in sparsely-populated rural areas is to carry survival supplies -- including food, water and blankets -- in the trunk. They might also follow the practice of hikers and mountain climbers: always tell someone when you are leaving, your route and when you expect to reach your destination.  That way, if you don't arrive on time, rescue teams can come looking for you.

Many people think their cell phones will work just about anywhere. That misplaced faith can sometimes have tragic consequences, as in the case of Arthur an...

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U.S. Cellular Refunds Disputed Third-Party Charges to Wisconsin Consumers

Consumers rate US Cellular

U.S. Cellular has refunded $65,784 to Wisconsin consumers who were billed for unwanted text messaging services by Silicon Investments Group, Inc., a third-party vendor. The case, involving more than 6,500 transactions, was mediated by the Wisconsin Department of Agriculture, Trade and Consumer Protection.

U.S. Cellular also suspended all future billing of Wisconsin consumers by Silicon Investments Group, Inc. and suspended the company from running “Premium Text Messaging services” on its network. The refunds from U.S. Cellular were listed on consumers’ March or April 2012 bills.

“We appreciate the company’s cooperation with our mediation efforts,” said Sandy Chalmers, Division Administrator for Trade and Consumer Protection. “U.S. Cellular took steps to assist Wisconsin consumers who were billed for inappropriate and unauthorized phone services by a third-party company.”

Although text spam is becoming an annoyance for consumers nationwide, few states have taken any action against the perpetrators. In 2007, Illinois sued an alleged text spammer in 2007 and Texas filed a similar suit in 2009.

One Wisconsin consumer who filed a complaint with the Bureau of Consumer Protection received a series of unsolicited text messages from Silicon Investments advertising an entertainment message service called “Gossiptexts.” He received three messages from the company within two minutes on January 31st – the first was an opt-in message for the service, the second confirmed his participation in the program and the third was a text about the Super Bowl half-time show.

Despite ignoring the texts and taking no action to approve his inclusion in the program, he was charged $9.99 on his next monthly bill. According to U.S. Cellular, the guidelines from the Mobile Marketing Association would require that he take active steps such as entering a confirmation code on a separate website in order to approve this service on his phone.

Telecommunications companies allow third-party vendors to charge consumers on their monthly bills for services and applications they purchase for their phones. But through a process referred to as “cramming,” illegitimate third-party groups will charge false fees or will bill for services the consumer never knowingly purchased. Because monthly phone bills can be difficult to navigate, these companies expect that a large percentage of consumers will never notice that the fees are tacked to the accounts.

Consumer Protection provides the following tips to help consumers avoid falling victim to cramming:

  • Review your monthly bills closely, looking for questionable or unauthorized charges.  
  • Dispute any unauthorized charges with the third-party vendor through their contact number listed on the bill. 
  • If this gets you nowhere, take your issue directly to the cell service provider.

U.S. Cellular has refunded $65,784.15 to Wisconsin consumers who were billed for unwanted text messaging services by Silicon Investments Group, Inc., a thi...

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Court Resolves Texas Cramming Suit

The state of Texas has secured a court order resolving the state's year-long investigation into Arizona-based JAWA and its owners, with the court requiring the defendants to pay $2 million for defrauding wireless customers in Texas.

“After a thorough investigation, the state determined that JAWA was improperly adding expensive, unauthorized charges to Texans’ monthly cell phone bills,” said Texas Attorney General Greg Abbott. “As a result, we charged JAWA and related entities with deceptive trade practices and sought to force the company’s owners to repay the customers they defrauded.”

Abbott says JAWA must not only pay the $2 million to Texas, but repay customers for all unauthorized charges, and establish both a toll-free telephone number and a website to help all affected customers.”

Cramming suit

In early 2011 Texas, along with Verizon Wireless, sued JAWA claiming the company was defrauding cell phone customers by “cramming” their bills for unwanted and unauthorized content.

In an unusual move, JAWA pushed back, waging a public relations battle with both Texas and Verizon Wireless. In the end, a Travis County, Texas court sided with the state.

Abbott says the defendants’ current customers all received a text message informing them of their right to obtain a full refund. He said former customers should review their billing statements for unauthorized charges.

To obtain a refund, eligible customers should call (800) 482-5392, visit www.jawa.com or any other website for which JAWA has active customers. Customers must submit their cell phone number to request and obtain a full refund of amounts they paid to the defendants.

Additional terms

The judgment also includes an injunction that imposes detailed restrictions that will govern the defendants’ provisions of services to existing customers and in any possible future sales of PSMS (premium short message services). For any future PSMS sales, the injunction requires that the defendants provide:

Detailed disclosures regarding the costs and material terms of services in all aspects of the marketing and sale of PSMS.

A comprehensive compliance program that will require the implementation of a written program with the assistance of an independent third party professional with expertise in compliant PSMS sales and periodic training of employees.

For the next five years, random semi-annual assessments conducted by independent auditors will ensure full compliance with the injunction, Abbott said.

Abbott said the defendants employed sophisticated “cloaking” technology to hide their advertised Web pages from regulators and cell phone carrier auditors, instead of displaying completely different versions of the pages when a regulator or auditor visited them. The compliance program and audits will ensure they cannot engage in these tactics in the future, he said.

The state of Texas has secured a court order resolving the state's year-long investigation into Arizona-based JAWA and its owners, with the court requiring...

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AT&T Launching Home Security Service

AT&T is expanding into the home security business, offering services to homeowners who not only want to secure their home while they are away, but have control over it as well.

The services, called AT&T Digital Life, will get trials this summer in the Atlanta and Dallas markets.

The remote monitoring and automation portfolio will feature web-based access to automation, energy and water controls, as well as professionally monitored security services. The company says it will give users control and security of their homes using any web-enabled device, PCs, tablets and smartphones.

While you might think AT&T would require subscribers to use AT&T wireless as its mobile network, it doesn't. The company says the service will be available to customers regardless of wireless carrier.

Next level

"The AT&T Digital Life service has the potential to take home monitoring and home security solutions to another level," said Larry Hettick, Research Director, Consumer Services, for Current Analysis. "The service promises to be as robust as anything in the marketplace today backed by the trusted AT&T brand."

The system will be able to control cameras in the home, lock and unlock doors, control the thermostat, sense smoke, carbon monoxide and broken glass, control appliances and detect moisture. The system's devices will be wirelessly enabled to connect to the IP-based AT&T Digital Life platform inside the home.

AT&T did not reveal price information, but did say there would be different levels of service, depending on the features consumers want.

The move into home security makes AT&T a competitor with ADT, Pinnacle, and other nationwide security firms, but with a decisive marketing advantage. While other firms often sell their service door to door, AT&T will market its home security services through its network of stores that also sell its wireless services.

And AT&T isn't alone among communications companies eying the home security business. Cable TV companies have also started introducing home security services for subscribers.  

AT&T is expanding into the home security business, offering services to homeowners who not only want to secure their home while they are away, but have...

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Qwest Fraud Victims Get $44 Million

The Justice Department has returned approximately $44 million to victims of a securities fraud scheme related to Qwest Communications International Inc., Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney John F. Walsh for the District of Colorado and Special Agent in Charge James F. Yacone of the FBI’s Denver Division announced.

The $44 million in funds were forfeited to the United States as a result of the 2007 federal conviction of Qwest’s chief executive officer, Joseph P. Nacchio, for securities fraud.  The forfeited funds are being returned to 112,210 victims who incurred losses on Qwest securities purchased during the fraud scheme. 

Between 1999 and 2002, Nacchio publicly announced unrealistic revenue projections for Qwest and then caused Qwest to issue false and misleading statements to the public about the company’s financial condition, as part of his scheme to commit securities fraud.  After the irregularities were discovered, Qwest stock, which had traded as high as $60 per share, plummeted to about $1 per share.

Following his conviction, Nacchio was sentenced to 70 months in prison and was ordered to forfeit $44 million in funds, the net proceeds he received from the fraud scheme.  Nacchio was also ordered to pay a $19 million fine, which, by law, was paid to a fund for victims of crime. 

“Securities fraud is a particularly insidious crime because it undermines public confidence in the financial markets,” said U.S. Attorney Walsh.  “I am pleased that we were able to recover more than $44 million in criminal proceeds and return it to innocent Qwest investors.”

“Following his conviction for securities fraud, Mr. Nacchio was ordered to forfeit $44 million,” said Assistant Attorney General Breuer.  “Today, we are fulfilling a central objective of the Criminal Division’s Victim Asset Recovery Program and returning those funds to the victims of Mr. Nacchio’s crime.”

Persons with questions about the Qwest distribution should contact the Remission Administrator at 1-877-268-3001, or visit the website at www.gilardi.com/qwestremission.

The Justice Department has returned approximately $44 million to victims of a securities fraud scheme related to Qwest Communications International Inc.,...

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The BlackBerry 10: Will It Save Research In Motion?

The Canadian-based company Research in Motion (RIM) has seen better days.

In recent months, the multinational telecommunications company has lost partnerships and endured plummeting stock prices, so obviously the company has been quite eager to showcase a new product to strengthen its public perception, which brings us to the BlackBerry 10. The new device that was recently introduced at the company's annual BlackBerry World convention.

The BlackBerry 10 is expected to directly compete with Apple's iOS, as well as the Android. The difference is that users will be guided by several windows divided into sections, or panes, instead of icons.

This may be the beginning of the end for the BlackBerry keyboard, as touchscreen competitors have made phone keyboards seem dated and hard to use, but company CEO ThorstenHeins did say that the company will still produce devices with keyboards in the future for those with large thumbs or a taste for the tactile.

Hopefully those future phones won't look anything like the old BlackBerry keyboards, as the BlackBerry 7 feels extremely clunky and and outdated, and doesn't have the sleekness and light weight of its successful competitors. 

Screens

The Home screen will contain specific tabs for application shortcuts that will display information in real time, similar to the Android widgets. The panes will also allow you to navigate freely from task to task, without having to close one application before opening another.

"No one has time to pop in and out of applications every time they want to change an application," Heins said in a statement. "We want to use a paradigm that is easy and fast. It's all about the flow."

Another useful feature will be the phone's ability to tailor itself to each individual user. For example, the virtual keyboard will adjust to the user's particular typing style, and it will also pre-populate words that it believes you're trying to convey.

RIM as a whole has been trying to establish a new niche of customers that probably wouldn't use the iPhone or Android. The company is focusing on the business community, as well as small business owners to better associate Blackberry with serious business use, as opposed to something toy-like or playful like its colorful competitors. Hence their recent slogan, "We need tools not toys."

It's kind of crunch time for RIM, and its latest Florida convention was of great importance to rally the company's troops as well as its investors. Although RIM is selling relatively well in Asia, the company's market share has gone down considerably in the United States, continuing to go down another 5 percent as of yesterday.

The Canadian based company Research in Motion (RIM) has seen better days.In recent news the multinational telecommunications company has lost partnership...

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Samsung Goes Against the iPod Touch With the New Galaxy

Remember when cell phones were actually used for making phone calls? Of course they still are, but with the many extras today's smartphones come with, it's often hard to remember that their primary use is for making and receiving phone calls.

But hey, if you want extra, extra is going to cost, right? Which is why smart phone prices have become way too hefty for some, especially for those who are on a fixed budget.

A popular alternative for the pricey smartphone is a connected media player, which has many of the smartphone features like web access  and the ability to snap high quality photos, but is priced much less since it doesn't actually make phone calls like the smartphone does. But again, when is the last time we thought of our smartphones as phones, and not pocket sized laptops?

Sneaky jackal

Readers rate Samsung phones

Currently, Apple's iPod Touch is the king of the media player jungle, as it closely resembles the iPhone, with a 3.5-inch screen, pretty decent resolution, and the ability to run many of the same apps. But if the iPod Touch is the lion king of the media player jungle, then the newly made Galaxy Player 3.6 from Samsung is the sneaky jackal creeping to pounce on the competition. (Samsung is already top dog in smartphone sales, as we reported yesterday while Apple remains stuck in third place).

The main draw of the Galaxy Player 3.6 is its $50 lower cost, which will entice those who desire smartphone features but not smartphone costs, and in about 10 days Samsung will release a new model called the Galaxy Player 4.2 for $200, which is rumored to be actually closer to the iPod Touch with a slightly larger screen and good quality speakers.

Other notable features of the Galaxy Player 3.6 include a camera that actually takes better still photos than the iPod Touch, an FM radio and expandable memory. The drawbacks consist of a bulkier and heavier feel than the Touch, with seemingly poorer resolution. Not horrible resolution but it certainly doesn't provide the detailed imagery that the Touch or iPhone possess.

If you're looking for stronger resolution, you may want to wait for the 4.2-inch model to be released , as it does show a clearer picture. The 3.6-inch model can also be coupled with a cell phone through Bluetooth and one will be able to receive, but not make out going calls. It also comes with 8 gigabytes of internal memory, and can be expanded by the purchase of a memory card. 

The Galaxy Player can also make voice and video calls, while sending text messages if you're close to a Wi-Fi signal. It also has the ability to get media from a computer by plugging the media player through a cable and manually moving the files. Its a bit labor intensive but still a useful feature none the less.

So if purchasing the highly coveted smartphone doesn't seem that smart to you in terms of pricing, the Galaxy Player 3.6 and 4.2 may be a better financial fit, especially if you're willing to live without all of iPod Touch's bells and expensive whistles.

Remember when cell phones were actually used for making phone calls? Of course they still are, but with the many extras today's smartphone's come with, its...

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Samsung Most Popular Mobile Phone in First Quarter

The Apple iPhone continued to gain ground, but not fast enough to overtake Samsung, which was the top original equipment manufacturer (OEM) in the U.S. mobile phone space in the first quarter of 2012, according to digital industry analyst comScore.

The study surveyed more than 30,000 U.S. mobile subscribers and found Samsung to be the top handset manufacturer overall with 26.0 percent market share. Google Android continued to grow its share in the U.S. smartphone market, accounting for 51 percent of smartphone subscribers, while Apple captured more than 30 percent.

For the three-month average period ending in March, 234 million Americans age 13 and older used mobile devices. That's got to be close to 100 percent, since the total U.S. population in mid 2011 was estimated to be 311 million.

Samsung ranked as the top OEM with 26.0 percent of U.S. mobile subscribers, moving up 0.7 percentage points. It's followed by LG with a 19.3 percent share.

Apple continued to gain share in the OEM market, ranking third with 14.0 percent of mobile subscribers, up 1.6 percentage points, followed by Motorola with 12.8 percent and HTC with 6.0 percent.

Upgrading to smartphones

The transition to smartphones also gained speed in the first three months of this year. More than 106 million people in the U.S. owned smartphones during the three months ending in March, up nine percent from December.

Google Android ranked as the top smartphone platform with 51 percent market share, growing by 3.7 percentage points. Apple's share of the smartphone market increased 1.1 percentage points to 30.7 percent. RIM ranked third with 12.3 percent share, followed by Microsoft with 3.9 percent and Symbian with 1.4 percent.

In March, 74.3 percent of U.S. mobile subscribers used text messaging on their mobile device.

Downloaded applications were used by 50 percent of subscribers, up 2.4 percent, while browsers were used by 49.3 percent, up 1.8 percent.

Smartphone users also increased their use of social networking sites, online games and music services.

The Apple iPhone continued to gain ground, but not fast enough to overtake Samsung, which was the top original equipment manufacturer (OEM) in the U.S. mob...

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FCC Launches 'Bill Shock' Website

Verizon Wireless consumers' comments

The Federal Communications Commission (FCC) has launched a new ‘bill shock’ website, an online tool to help consumers track implementation of recent commitments by wireless carriers to provide usage alerts before and after consumers exceed their plan limits.

The action is certainly timely. Consumers complain daily to ConsumerAffairs about billing problems with their cell phones. A typical comment came from Basilio of Valdese, N.C., a Verizon Wireless customer: "I just don't know how they calculated the usage per minute. The plan says 25 cents per minute, but when you call, say 10 times within a minute, the actual equivalent is already 10 minutes. At the start of your call, that's already a minute even when you have not used a minute."

Nancy of Hazen, Ark., is unahppy about the bills she's run up using her AT&T Wireless data plan: "For the past 6 months, I have been getting notices that I was going over my data usage plan, being charged an extra $10 each month plus having my service slowed down. So last month, I called into AT&T to get my data usage increased to 3GB instead of the 2GB I had. After getting this increased, I got an email from AT&T telling me I have used 65% of my usage, just like when I had the 2GB. I know I haven't overused 3GB yet."

They're not alone. A ConsumerAffairs analysis of about 79,000 comments on Facebook, Twitter and other social media finds consumer sentiment about their cell phone bills solidly in negative territory.

Bill shock

Bill shock is a sudden and unexpected increase in monthly wireless bills that happens when consumers’ unknowingly exceed plan limits for voice, data and text. Bill shock can also happen when consumers travel abroad and get hit with unexpected international roaming charges. A recent FCC survey found that 30 million Americans – or one in six wireless users – have experienced bill shock.

In October 2011, FCC Chairman Julius Genachowski announced a new program that would provide free alerts for wireless consumers as they approach monthly voice, data and text limits, and after those limits have been exceeded. Chairman Genachowski was joined by CTIA-The Wireless Association, whose members provide service to approximately 97% of U.S. wireless consumers.

“Using technology to empower consumers with information has been among the top priorities of the Commission," Genachowski said. "Last October, we were pleased that CTIA-The Wireless Association and Consumers Union joined us to announce new commitments to provide free alerts to consumers before they approach limits and incur fees. We also promised an online resource with information about when carriers begin providing these alerts. Today, we deliver on that promise.” 

The new website is available at http://fcc.us/billshocks. The Commission will regularly update the table to reflect each carrier’s progress in providing the bill shock alerts, based on information provided by CTIA-The Wireless Association, and in partnership with Consumers Union.

The Federal Communications Commission (FCC) has launched a new ‘bill shock’ website, an online tool to help consumers track implementation of r...

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National Effort Aims To Reduce Harm From Stolen Cell Phones

In many ways, losing your cell phone is like losing your wallet. Not only can the finder make unlimited calls, they can download all sorts of expensive games and other software, charging it, of course, to you.

As smartphones have gotten more expensive, the devices themselves can bring money on the black market.

Now the Federal Communications Commission (FCC) and the major wireless carriers have set up a central database of stolen cell phones, helping to prevent reduce their value to criminals.

Two-year ramp-up

Wireless providers will set up and maintain the database during the two-year ramp-up period.

More than 40 percent of all robberies in New York City involve smartphones and other cell phones. The situation is getting worse: In Washington, D.C., cell phones were taken in 54 percent more robberies in 2011 than in 2007, and cell phones are now taken in 38 percent of all DC robberies.

Other major cities have similar statistics, with robberies involving cell phones comprising 30-40 percent of all robberies.

A recent Symantec study indicates that a loss or theft of an unsecured smartphone often results in access to sensitive personal data. FCC Chairman Julius Genachowski, with the support of major city police chiefs and the wireless industry, announced the new initiatives by wireless carriers, initially including AT&T, T-Mobile, Verizon and Sprint who cover 90 percent of US subscribers, to deter theft and secure customer data.

System to be online in six months

Within six months, when Americans call their participating wireless provider and report their wireless devices stolen, their provider will block that device from being used again. This system will be rolling out globally using common databases across carriers over the next 18 months, according to the FCC.

A parallel campaign will encourage users to lock their phones with passwords. Smartphone makers will notify and educate users in the most highly visible ways—through messages on the smartphone itself and through “Quick Start” user guides—about how to use passwords to deter theft and protect their data.

The industry will also educate users on lock/locate/wipe applications. Wireless providers will directly inform their customers about how to find and use applications that enable customers to lock/locate/and wipe smartphones remotely.

National Efforts Aims To Reduce Harm From Stolen Cell Phones...

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New App May Make Mobile Data Safer

More data is now being transmitted using mobile devices, but consumers, while diligent about keeping their PC's updated with the latest spyware, leave their mobile phones unprotected.

Now, researchers at Carnegie Mellon University CyLab have developed a new smartphone app that establishes a more secure basis for Internet communications. The app is called SafeSlinger.

"With SafeSlinger, users can gain control over their exchanged information through end-to-end encryption, preventing intermediate servers or service providers from reading their messages or other sensitive stored data in their smartphones," said Adrian Perrig, technical director of Carnegie Mellon CyLab and a professor of electrical and computer engineering at CMU.

Perrig along with Michael W. Farb, a CyLab research programmer, Jon McCune, a CyLab research systems scientist, and CMU students Gurtej Singh Chandok and Manish Burman developed SafeSlinger to help mobile phone users safely and privately retrieve information from trusted sources.

Who's who

SafeSlinger is designed to provide the user with the confidence that the person you are communicating with is actually the person they have represented themselves to be. Perhaps the most impressive feature is that SafeSlinger provides secure communications and file transfer even if the servers involved are tainted with malware.

As more and more consumers access the Internet from an ever-expanding pool of mobile devices, including smartphones and tablets, Web-based threats continue to become more frequent and increasingly sophisticated.

"We increasingly lose control over our data,” said Perrig. “But SafeSlinger's user-centric security design includes an advanced protocol, which incorporates elements of several cryptographic schemes and factors in the prevention of numerous types of attacks."

SafeSlinger is available for free download.

Researchers at Carnegie Mellon University CyLab have developed a new smartphone app called SafeSlinger, that establishes a more secure basis for Internet c...

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U.S. Sues AT&T, Charges Fraud in Services for the Deaf

The United States has filed a complaint against AT&T alleging fraud in the company's services for the deaf, known as Internet Protocol (IP) Relay services.

IP Relay is a text-based communications service designed to allow hearing-impaired individuals to place telephone calls to hearing persons by typing messages over the Internet that are relayed by communications assistants (CAs) employed by an IP Relay provider.   

IP Relay is funded by fees assessed by telecommunications providers to telephone customers, and is provided at no cost to IP Relay users.   The FCC, through the TRS Fund, reimburses IP Relay providers at a rate of approximately $1.30 per minute.   

In an effort to reduce the abuse of IP Relay by foreign scammers using the system to defraud American merchants with stolen credit cards and by other means, the FCC in 2009 required providers to verify the accuracy of each registered user’s name and mailing address.  

Fraudulent callers

The United States alleges that AT&T violated the False Claims Act by facilitating and seeking federal payment for IP Relay calls by international callers who were ineligible for the service and who sought to use it for fraudulent purposes. The complaint alleges that, out of fears that fraudulent call volume would drop after the registration deadline, AT&T knowingly adopted a non-compliant registration system that did not verify whether the user was located within the United States.   

The complaint further contends that AT&T continued to employ this system even with the knowledge that it facilitated use of IP Relay by fraudulent foreign callers, which accounted for up to 95 percent of AT&T’s call volume.   The government’s complaint alleges that AT&T improperly billed the TRS Fund for reimbursement of these calls and received millions of dollars in federal payments as a result.

“Federal funding for Telecommunications Relay Services is intended to help the hearing- and speech-impaired in the United States,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division of the Department of Justice.   “We will pursue those who seek to gain by knowingly allowing others to abuse this program.”

“Taxpayers must not bear the cost of abuses of the Telecommunications Relay system,” said David J. Hickton, U.S. Attorney for the Western District of Pennsylvania.  “Those who misuse funds intended to benefit the hearing- and speech-impaired must be held accountable.”

The United States has filed a complaint against AT&T alleging fraud in the company's services for the deaf, known as Internet Protocol (IP) Relay ser...

Illinois Close to Ban on Phone Bill 'Cramming'

After years of consumer complaints, one state - Illinois - is close to outlawing a practice known as "cramming," which results in unauthorized charges being placed on consumers' phone bills.

Illinois' House of Representatives voted 105-0 to ban third-party companies from placing charges for services, many of them non-existent or unwanted, on consumers' bills. The measure next goes to the Illinois Senate where passage is expected.

“Phone cramming is a multibillion-dollar business for con artists who sneak unauthorized charges onto unsuspecting customers’ bills, affecting everyone from residential users to small business owners, even nonprofit organizations and government agencies,” said Illinois Attorney General Lisa Madigan. “The only way to put an end to this scam is by instituting a ban on third-party charges on our phone bills.”

Conflict with the feds?

While Madigan may be right, the legislation, if passed, is almost certain to be challenged in court, since it would undo a feature of federal legislation. The Telecommunications Act of 1996 allows third-party service providers to market their services to consumers and place the charge for those services on the consumers' residential phone bill.

Congress intended the legislation to promote competition for services, which it expected to be good for consumers. But like much of what Congress does, there have been unintended consequences.

Scam operators have used the law to charge consumers for voice mail service, website design and hosting, and other services they neither want nor agreed to.

"I received a bill for $12.95 with $.81 taxes from I Tech PC Support for a monthly fee on Feb 19,2012, on my Frontier phone bill. I never requested this or know this company," Tom, of Hamilton, Ohio, wrote in a post on ConsumerAffairs.

Ban on third-party billing

The Illinois legislation seeks to end the practice of "cramming" by banning all billing by a third-party company. It hopes to avoid a conflict with the federal statute by allowing for limited, common sense exceptions for legitimate services.

Madigan says estimates indicate that telephone companies place at least 300 million third-party charges on their customers’ bill each year. According to a U.S. Senate Commerce Committee report, third-party billing generates at least $2 billion annually.

Phone cramming scams originally were perpetrated primarily through telemarketers, especially before the Do Not Call registry was established. More recently, however, the scam has flourished online.

Online cramming

Internet users report simply submitting their phone number, among other personal information, for online prize drawings, surveys or free recipes. Weeks or months later, consumers find charges on their phone bills for unauthorized services.

To date, Madigan says she has filed 30 lawsuits against crammers, representing more than 200,000 Illinois businesses and residences who were victim to these phone billing schemes. Among the most glaring of targets for these scams was cited in Madigan’s 2009 lawsuit against US Credit Find Inc., a Venice, Calif.-based operation, which crammed a Springfield public library’s dial-a-story telephone line.

Madigan has testified before Congress, urging federal legislation to ban cramming. Congress, however, has failed to amend the law that allows it. Illinois is now attempting to hang up on crammers at the state level.

Illinois Close To Ban On Phone Bill 'Cramming'...

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AT&T Ends Unlimited Data Plans

OK, it's great that AT&T, Verizon and their competitors have been pushing everyone into upgrading to smarter, faster, snazzier 3G and 4G smartphones with all kinds of data-hungry features.

So, now the logical next step is -- you guessed it -- data caps.

AT&T broke the news today, saying it will no longer let its customers use more than a predetermined amount of data and will begin throttling heavy users' download speeds. 

For 3G users with unlimited data plans, the new limit is 3 gigabytes per month and for 4G LTE users, it's 5 gigabytes.

So how can an "unlimited" data plan have limits?  It's comparable to an all-you-can-eat buffet that forces you to eat with one hand after you've consumed so many drumsticks.  No one says you can't keep eating, but it will take you a lot longer.  

AT&T says -- what else? -- the measures are necessary because customers are using too much data, which is exactly what AT&T, Apple and Samsung have been urging them to do with all the glitzy ads showing happy smartphoners talking with Siri, watching videos and studying maps.

Apple's iPhones are notorious for hogging bandwidth but other smartphones are close behind.

AT&T and other carriers bemoan the billions they are spending to upgrade their networks so they can handle more traffic.  The logical question consumers might ask is: when all that extra capacity comes on line, will the data limits go away?

Actually, the data limits aren't new.  AT&T has been throttling the heaviest 5% or so of users for quite somet time but it has never specified exactly what constituted "heavy."

So now we know what's heavy.  The next question is, what's slow? How slow will those "throttled" speeds be?  

No word on that from AT&T.  Maybe the answer is working its way through a throttled circuit somewhere. 

OK, it's great that AT&T, Verizon and their competitors have been pushing everyone into upgrading to smarter, faster, snazzier 3G and 4G smartphones wi...

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How Safe Is That App Your Child Is Using?

A study by the Federal Trade Commission finds that online app stores are providing almost no information about what information is gathered from children, how it is used, who has access to it and what steps parents can take to keep their children safe.

The report found that in 2008, smartphone users could choose from about 600 available apps. Today there are more than 500,000 apps in the Apple App Store and 380,000 in the Android Market.

"Consumers have downloaded these apps more than 28 billion times, and young children and teens are increasingly embracing smartphone technology for entertainment and educational purposes" but neither the app stores nor the app developers provide the information parents need to determine what data is being collected from their children, how it is being shared, or who will have access to it, the survey found.

"At the FTC, one of our highest priorities is protecting children's privacy, and parents deserve the tools to help them do that," said FTC Chairman Jon Leibowitz. "Companies that operate in the mobile marketplace provide great benefits, but they must step up to the plate and provide easily accessible, basic information, so that parents can make informed decisions about the apps their kids use.

"Right now, it is almost impossible to figure out which apps collect data and what they do with it," Leibowitz said. "The kids app ecosystem needs to wake up, and we want to work collaboratively with industry to help ensure parents have the information they need."

Lots of data

The report notes that mobile apps can capture a broad range of user information from a mobile device automatically, including the user's precise geolocation, phone number, list of contacts, call logs, unique identifiers, and other information stored on the device. At the same time, the report highlights "the lack of information available to parents prior to downloading mobile apps for their children, and calls on industry to provide greater transparency about their data practices."

While there was a diverse pool of kids apps created by hundreds of different developers, there was almost no information about the data collection and sharing on the Apple App store promotion pages and little information beyond general permission statements on the Android Market promotion pages.

"In most instances, staff was unable to determine from the information on the app store page or the developer's landing page whether an app collected any data, let alone the type of data collected, the purpose for such collection, and who . . . obtained access to such data."

The report recommends:

  • All members of the "kids app ecosystem" – the stores, developers and third parties providing services – should play an active role in providing key information to parents.
  • App developers should provide data practices information in simple and short disclosures. They also should disclose whether the app connects with social media, and whether it contains ads. Third parties that collect data also should disclose their privacy practices.
  • App stores also should take responsibility for ensuring that parents have basic information. "As gatekeepers of the app marketplace, the app stores should do more." The report notes that the stores provide architecture for sharing pricing and category data, and should be able to provide a way for developers to provide information about their data collection and sharing practices.

The FTC enforces the Children's Online Privacy Protection Rule. The Rule requires operators of online services, including interactive mobile apps, to provide notice and get parental consent prior to collecting information from children under 13. The report says in the next 6 months, FTC staff will conduct an additional review to determine whether some mobile apps were violating COPPA.

A study by the Federal Trade Commission finds that online app stores are providing almost no information about what information is gathered from children,...

Video: The New Droid 4

Motorola's latest smartphone, the Droid 4, goes on sale at Verizon Wireless stores tomorrow (Friday) after turning heads at January's Consumer Electronics Show. The phone has a lot of the same things as other top of the line smartphones, but something extra as well – a real keyboard.

A preview of the Driod 4...

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Do Smartphones Make Shoppers Smarter?

Looking for a reason to upgrade your old cell phone to a smartphone? Here's one. A marketing survey suggests smartphone owners are smarter shoppers.

The study, by Perception Research Services International (PRS), found that 83 percent of smartphone owners use the devices while shopping. And not just for big ticket items like you would expect. The study found 49 percent of smartphone users use them to check prices while grocery shopping.

Price comparisons

The study found that smartphone owners use their phones during the decision making process, comparing prices, gathering product information, searching for sales/coupons or reading reviews/opinions. About one-third make actual purchases with their phones.

Importantly, Hispanics and African-Americans are more apt than Caucasians to use their smartphones while shopping.

Younger users

Further, smartphone owners, who use their phones to shop tend to be under 35 years old, are employed full-time and are better educated than the average consumer.

"Marketers would do well to ensure that they understand the role of smartphones and digital content – relative to packaging and POS materials – in the shopping process within their categories," said Jonathan Asher, Executive Vice President at PRS. "They need to ensure that all their communications are complementing each other and working together. And retailers should now consider how they set their shelves and create merchandising that is smartphone-friendly."

Smartphones assume bigger role in shopping...

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Is That A Security Breach In Your Pocket?

How many of us are walking around with all manner of highly sensitive information in our pockets or purses, completely exposed and vulnerable?

If you have a smartphone – and nearly half of American consumers do – you could be at risk.

“In today’s digital age, while we enjoy the benefits of technology, we must also be aware of the risks it presents,” said Massachusetts Attorney General Martha Coakley. “Criminals have turned to technology as access points for key personal information. The best way for consumers to protect themselves is to make sure their technological devices are secure.”

Smartphones are sophisticated little devices. Many have the same functions as your laptop or desktop computer at home. But while your home computers may be protected against malware, chances are your smartphone isn't.

According to mobile security experts, there are six steps you should take to keep your smartphone secure:

1. Password Protect Your Phone

Loss or theft of your phone is the easiest way to put your personal data at risk, and with data showing that smartphone theft is on the rise, security experts suggest consumers secure their phones with a password to ensure that if it is misplaced, gaining access won’t be easy.

Consumers should change their passwords frequently and should not use passwords containing their name, information found on their driver’s licenses, or other easy to guess passwords such as birthdates, anniversaries, and your children’s names. Encrypting your smartphone provides an even greater level of security.

2. Set Up “Remote Wipe”

Most smart phones carry a “remote wipe” feature allowing consumers to destroy all data on a phone that is stolen including emails, texts, contacts, documents and passwords. Consumers should consult their smart phones’ instruction manuals to learn how to remotely wipe. For smartphones that do not have the feature, there are a number of programs that can be purchased to perform this function.

3. Beware of Unknown Applications

While some third-party applications actually help consumers prevent viruses from overtaking their smart phones, others can be malicious. It is recommended that consumers always beware of the applications they are using.

What kind of ratings and reviews does the application have? What company made the application? How much information does the application ask you to share?

Applications can require a multitude of permissions including obtaining access to various functions of your smartphone such as your phones Global Positioning System (GPS) or camera. Applications can also access sensitive information stored such as contacts, text-messages, and email.

4. Where Are You?

Geotagging is a relatively newer concept that allows a consumer to “tag” a photo or video with their current location. Usually, the geotag contains GPS coordinates for pinpoint accuracy.

Similarly location-based services operate by utilizing the GPS on smartphones. Sometimes by “checking in” to participating merchants and locations, consumers can earn rewards or discounts. However, by “checking-in” others can find out where and how long consumers were not home. Consumers can prevent geo-tagging by turning the function off on their smart phones or by paying particular attention to pop-up requests when opening various applications or websites.

5. Be Careful When Surfing

As stated earlier, smart phones can be as powerful as desktop computers and like desktops, they can pick up viruses and other mal-ware from simply surfing the Internet. It is recommended that consumers be careful when using the Internet. Just as when working on a desktop, do not click on unknown links and do not open suspicious emails.

6. Be Cautious When Online Banking and Shopping

Consumers should use caution when banking online and ensure that they are using a secure network and not an unsecured Wi-Fi hot spot. When shopping on-line, credit cards provide better protection than debit cards if your card is used fraudulently.

tips for improving the security of your smartphone...

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Supreme Court: Telemarketers Can Be Sued in Federal Court

The Supreme Court has unanimously ruled that consumers injured by violations of the Telephone Consumer Protection Act (TCPA), which outlaws abusive telemarketing practices, may bring lawsuits in federal courts as well as state courts.

Lawyers for the consumer group Public Citizen represented Marcus Mims in the case, Mims v. Arrow Financial Services, a debt collection agency.

Mims, a Florida resident, alleged that Arrow, seeking to collect a debt, repeatedly used an automatic telephone dialing system or prerecorded or artificial voice to call Mims's cellular phone without his consent. He charged that Arrow "willfully or knowingly violated the TCPA" and sought declaratory relief, a permanent injunction, and damages.

"The court’s opinion, written by Justice Ruth Bader Ginsburg, accepts without reservation all of the arguments we made in support of [Mims'] right to choose a federal court to assert his claims," said Scott Nelson, a Public Citizen attorney.

"We find no convincing reason to read into the TCPA's permissive grant of jurisdiction to state courts any barrier to the U. S. district courts' exercise of the general federal-question jurisdiction they have possessed since 1875," Ginsburg wrote. "We hold, therefore, that federal and state courts have concurrent jurisdiction over private suits arising under the TCPA."

The TCPA forbids such practices as calls to cell phones that use automatic dialers, calls to residences that use prerecorded messages, and unsolicited junk faxes, and it says that consumers who are victims of such practices can sue for up to $1,500 per violation.

The act specifies that those lawsuits may be brought in state courts. But, as the court ruled, the act does not prevent consumers from going to federal court instead, by invoking the federal courts’ general jurisdiction over all cases that are based on federal law.

The decision will make it possible for plaintiffs with large claims that are suited to litigation in federal court to choose a federal forum for those claims. It also may facilitate class actions that could not be brought if TCPA claims were limited to state courts.

The Supreme Court has unanimously ruled that consumers injured by violations of the Telephone Consumer Protection Act (TCPA), which outlaws abusive te...

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AT&T Raises Prices for Smartphone, Tablet Data

AT&T is jacking up data plan rates by as much as 33% for smartphones and tablet computers.

“Customers are using more data than ever before,” said David Christopher, chief marketing officer, AT&T Mobility and Consumer Markets. “Our new plans are driven by this increasing demand in a highly competitive environment, and continue to deliver a great value to customers, especially as we continue our 4G LTE deployment.”

Normally, when one produces and sells more of a commodity, it becomes cheaper. But in the case of bandwidth, demand is outpacing supply and carriers are raising prices or imposing usage ceilings, or both. AT&T prefers to say the plans "give customers more data and value."

“Customers are using more data than ever before,” said David Christopher, chief marketing officer, AT&T Mobility and Consumer Markets. “Our new plans are driven by this increasing demand in a highly competitive environment, and continue to deliver a great value to customers, especially as we continue our 4G LTE deployment.”

The new plans will launch this Sunday, January 22. 

The new smartphone plans include:

  • AT&T Data Plus 300MB: $20 for 300MB
  • AT&T Data Pro 3GB: $30 for 3GB
  • AT&T Data Pro 5GB: $50 for 5GB, with mobile hotspot / tethering

Smartphone customers needing additional data can pay $10 per additional gigabyte on the AT&T Data Pro 3GB and Data Pro 5GB plans; AT&T Data Plus users will receive an extra 300MB for $20.

The new tablet plans include:

  • AT&T DataConnect 3GB: $30 for 3GB
  • AT&T DataConnect 5GB: $50 for 5GB

Existing smartphone and tablet customers will have the choice of keeping their current plans or choosing one of these new plans, and the current $14.99 for 250MB plan for tablet customers will remain available. 

The tablet plans are for 30 days and automatically renew every 30 days, unless you cancel service prior to the start of the 30 day renewal, while smartphone plans are covered by contracts, normally three years. 

The company said customers should keep their device’s Wi-Fi turned on because data usage over Wi-Fi does not count against a customer’s monthly data plan. AT&T smartphone and tablet customers have access at no additional charge to AT&T’s 29,000 Wi-Fi hotspots nationwide.

Now that AT&T has officially given up on its plan to acquire T-Mobile, it's going to have to keep a tighter rein on its available spectrum, which would have been greatly increased had the T-Mobile deal gone through. Not that AT&T is any stranger to rate caps. It was the first carrier to limit consumption when it introduced tiered pricing plans way back in 2010.

AT&T is jacking up data plan rates by as much as 33% for smartphones and tablet computers.“Customers are using more data than ever before,&rdqu...

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Samsung's Goal: An All-Day Smartphone Battery

Samsung has set what sounds like a pretty modest goal.  It would like for its smartphones to be able to go all day on a single battery charge. That's fine but we hear from a lot of consumers who would be happy if their phones would just stop freezing up.

But back to battery life for a moment.  Simple as it sounds, getting through the day on a single charge is a rarity in today's smartphones. Many of them can't make it even if they do nothing but loll around in their owner's pocket or purse. 

Samsung vice president of product innovation Kevin Packingham would like to change that, he said in an interview with CNET at the Consumer Electronics Show in Las Vegas.

Smartphones pack a lot of features these days and a result, they also suck up an awful lot of energy, resulting in battery life that's much worse than we enjoyed just a few years ago.

Sure, it's nice to have those big screens, fast processors and 4G LTE transceivers but all those things take energy, and lots of it, as a Samsung smartphone owner named Syriac told us recently.

"Battery life is very very poor. Every day morning I go out with 100% charge. The battery will be empty by noon," Syriac said. "I will not even sell this phone to someone because I don't want to take his curse. I will definitely dig this phone in to garbage."

Motorola recently attacked the problem by offering the Droid Razr Maxx, which has a bigger battery than its standard Droid Razr.  This trick has been around for years among laptop users who don't mind totaing a few extra pounds but isn't generally an option for smartphones.

Packingham says Samsung will be using bigger batteries too but will also be working to find ways to make the phones operate more efficiently.

Consumers' concerns

No doubt Packingham is onto something but he might also want to take a look at the problems we hear about most often from Samsung smartphone users, like Steven of Clinton, Iowa, who says his phone "constantly freezes up on me while texting."

"I can promise you I will never buy another Samsung phone ever! This is the second Samsung phone I have and I am very disappointed with the quality. My newer phone is only a few months old and it has some major malfunctions. I shouldn't have to take it in and have it fixed already," Steven fumed.

Willie of Oakland, Calif., has the same problem.

"My phone constantly freezes causing me distress because I have children who rely on my communication by phone on a daily basis," he said. "I have taken the phone back to Metro several times because of this reason and the phone dropping from 4G which does not allow me to use the phone in certain areas, and I am not allowed internet access when the phone is not in the proper 4G status."

Yes, but ...

We decided to run a quick check to see how consumers were feeling about all this.  We found more than 6 million comments on Facebook, Twitter and other virtual water coolers and, although there is some grumbling, consumers seem to be feeling pretty good about Samsung.

So, if Packingham can pack more battery power into the phones and Samsung's engineers can cure the screen-freeze problem, the company just might be on the road to having a pretty enviable rating.

We'll take a look at how consumers view other Samsung products next week.

Samsung has set what sounds like a pretty modest goal.  It would like for its smartphones to be able to go all day on a single battery charge.But si...

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Nokia, Microsoft Hoping Their New Smartphone Is a Hit

The tech world is abuzz about a new smartphone today -- and no, it's not an iPhone or an Android.  It's the Lumia 900, Nokia's attempt to fight its way back into the smartphone market.

The Lumia 900 goes on display at the International Consumer Electronics Show in Las Vegas Monday and will be sold through AT&T stores.  It joins the simpler Lumia 710, already available through T-Mobile.  

But what's causing all the buzz is not the hardware behind the Lumia. It's the software. That's because the Lumia 900 runs Windows Phone, long derided by the technohip as a drab also-ran, somewhere on the evolutionary scale between a rotary dial phone and an early Blackberry.

But the latest version of Windows Phone -- known officially as 7.5 Mango -- is turning heads with a snappy design that critics say shows the kind of obsessive attention to detail and usability that has long defined Apple products.

Mom factor

“Our work is very visual, very engaging, and it also has the Mom factor—you can show your Mom exactly what you’re working on and she’ll get it,” said James Drage, a senior software development engineer on the Windows Phone Shell Team, in a news release.

Ricardo Espinoza, a software development engineer on the team, agreed. “Working on the Windows Phone has taught me how important it is to create something that’s intuitive right out of the box,” he adds. “Mobile phones need to be easy to use even for somebody who’s never used one before. You can’t have a learning curve.”

Drage helped develop several features for the start screen including a prominent feature called the “task switcher” that enables users to flip back and forth among applications that are running. That's part of what sets Mango apart from earlier versions, and from other smartphone operating systems: it runs many programs in the background, alerting you with a flashing button when something new wants your attention.

Hard-wired

Both Facebook and Twitter, for example, are hard-wired directly into Mango, so that they're running all the time.  A button flashes when a friend posts a new update or someone you're following emits a new tweet.

Not too many mortals, us included, have yet seen Mango in person so we have to take the word of reviewers like the New York Times' Nick Wingfield, who is impressed by the "bold, on-screen typography and a mosaic of animated tiles on the home screen."

The tiles light up as calls come in, emails are received and social networks beckon.  The design is said to be much easier for the average user to understand.  Anyone who's ever fumbled frantically with the latest 'Droid trying to figure out how to unlock the damned phone and answer a call should appreciate the simple way in which a tile springs to life -- making it easy to figure out what's demanding your attention and, just as important, making it easy to respond by simply pressing the blinking tile.

Will it catch on?  It's too soon to say but both Microsoft and Nokia desperately need a hit.  Microsoft has been on the sidelines of the smartphone wars for years, losing vital market share to Google and Apple while Nokia has been shoved aside by the likes of HTC and Samsung.

The tech world is abuzz about a new smartphone today -- and no, it's not an iPhone or an Android.  It's the Lumia 900, Nokia's attempt to fight its wa...

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Extreme Smartphone Users Becoming More Extreme

Data hog

We've long known that traffic only gets worse.  And now a new study confirms that it's not just vehicular traffic that displays this seemingly immutable rule.

Thanks to new smartphones and the apps that tag along, mobile data is accelerating beyond expectations, network management company Arieso finds in a new study.

Following a similar study in 2010, Arieso’s new analysis reveals that so-called "extreme" users are becoming even more extreme, with 1% of subscribers now consuming half of all downloaded data.

One thing is clear, the study finds: the capacity issues plaguing mobile operators around the world will worsen in 2012.

iPhone 4S

The Arieso study compares data usage across a variety of smartphones and connected devices. It finds that users of the iPhone 4S demand three times as much data as iPhone 3G users and twice as much as iPhone 4 users, who were identified as the most demanding in the 2010 study.

In a finding consistent with 2010 results, it also shows that Google Nexus One users make twice as many data calls as iPhone 3G users.

“The introduction of increasingly sophisticated devices, coupled with growing consumer demand, is creating unrelenting pressure on mobile networks. The capacity crunch is still a very real threat for mobile operators, and it looks set to only get harder in 2012,” commented Dr. Michael Flanagan, CTO, Arieso and study author. “The mobile industry needs new investment and new approaches to boost network performance and manage the customer experience”.

Top line results

The Arieso analysis compares the data consumption of users of the latest smartphones against the iPhone3G as a “normalised benchmark”. The study found that different users and different devices exhibit very different demands on the network.

The most significant change in consumer behavior between 2010 and 2011 data has been driven by the introduction of the iPhone 4S. iPhone 4S users download 2.76 times as much data as users of the iPhone 3G. And while an Android-powered device maintains last year’s position at the top of the table for uplink data volumes, with HTC Desire S users typically uploading 3.23 times as much data as iPhone 3G users, the iPhone 4S falls just behind in this category with a typical 3.20 times as much data uploaded.

There are some very hungry handset users, even compared to the iPhone 3G benchmark (iPhone 3G = 100%):

Data calls per subscriber:

  • HTC Google Nexus One: 221%
  • Sony Ericsson Xperia X10i: 157%
  • HTC Desire: 156%

Uplink data volumes:

  • 3G Modems (various): 2654%
  • HTC Desire S: 323%
  • iPhone 4S: 320%

Downlink data volumes:

  • 3G Modems (various): 2432%
  • iPhone 4S: 276%
  • Samsung Galaxy S: 199%

“While the report provides general trends, the studies on which they’re based demonstrate the importance to operators of understanding the increased consumption each type of smartphone brings. Despite stark industry warnings, mobile operators are still playing ‘Guess Who?’ with their subscribers,” continued Flanagan.

“Without adequately preparing networks to support the new generation of smart devices, operators risk spiralling and misplaced operational expenditure and delivering a sub-par quality of experience to customers. It’s critical that operators redouble their efforts to limit the impact of this inevitable squeeze.”

Data hogWe've long known that traffic only gets worse.  And now a new study confirms that it's not just vehicular traffic that dis...

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AT&T Turns Up More LTE Markets, Including NY, SF, LA

AT&T turned up its 4G Long Term Evolution (LTE) network in 11 new markets over the holidays, bringing its total to 26 markets covering 74 million people at the end of 2011, the company said.

Large cities like New York, San Francisco and LA, were included in the launch, as well as Austin, Chapel Hill, Oakland, Orlando, Phoenix, Raleigh, San Diego and San Jose. 

The additions make AT&T 4G LTE available in a total of 26 markets to 74 million consumers. 

The expansion adds to 15 markets launched in 2011: Athens, Ga.; Atlanta; Baltimore; Boston; Charlotte; Chicago; Dallas-Fort Worth; Houston; Indianapolis; Kansas City; Las Vegas; Oklahoma City; San Antonio; San Juan, Puerto Rico; and Washington, D.C.

"Dual layers"

“We’re building a 4G LTE network that’s blazing fast, and we offer dual layers of 4G technologies to provide customers with a more consistent speed experience,” said John Stankey, President and Chief Executive Officer—AT&T Business Solutions. “Our network, together with our unsurpassed 4G device portfolio and innovative applications, will give our customers an industry-leading mobile broadband experience.” 

AT&T’s mobile broadband service currently covers 284 million people and more than 90 percent of the population, including the top 100 U.S. markets.

AT&T expects its 4G LTE deployment to be largely complete by the end of 2013, Stankey said.

AT&T turned up its 4G Long Term Evolution (LTE) network in 11 new markets over the holidays, bringing its total to 26 markets covering 74 mil...

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Another Verizon 4G Outage Goes Unexplained

There's a bit of a buzz in telecom circles, as everyone tries to figure out what's up with Verizon's 4G LTE coverage, jinxed by outages lately. The third nationwide outage started yesterday and was fixed overnight, according to Verizon.

Unlike Blackberry's disastrous outages of a few months ago, however, the 4G outage probably went unnoticed by many Verizon users, since smartphones automatically fall back to the 3G network when 4G service is not available.  Blackberry users, by contrast, were left high and dry.

That doesn't mean, however, that it isn't a black eye for Verizon. Since 4G is still fairly new and rather expensive, current customers tend to be tech-savvy early adopters who are quick to notice, pounce on and complain about service failures.

Verizon hasn't made any official statements about the problem, although it tweeted earlier today: “4GLTE issue resolved overnight. 3G operated normally; calling, texting were unaffected.”

Jack of Edcouch, Texas, said he has been having connectivity problems with his Verizon 4G MiFi device and wonders if it's related to the outages.

"We have the Verizon 4G MiFi device which usually works great.  I run a script to a file and get 100% loss or trips times from four seconds on down. This is very irritating to say the least," Jack said.

Companies increasingly put their heads in the sand when problems occur, sending out a few tweets and perhaps a coy posting on their Facebook page, neglecting to issue the formal statements that were taken for granted just a few short years ago.

Whether that's effective is anyone's guess. We ran a sentiment analysis of some 4.4 million consumer comments on Twitter, Facebook and elsewhere looking for weak spots in Verizon's armor.

While many customers still view Verizon's network as a plus, there is a substantial group that views it as a negative.  Continued outages with no explanation may not be a good long-term solution to whatever Verizon's network problem is.

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Sentiment analysis powered by NetBase

There's a bit of a buzz in telecom circles, as everyone tries to figure out what's up with Verizon's 4G LTE coverage, jinxed by outages lately. The third n...

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Google Planning a Tablet to Compete with iPad

Forget smartphones, tablets are taking over.  Google is the latest to enter the tablet derby, saying it will have a media tablet "of the highest quality" to compete with the Apple iPad within the next six months. And the Kindle Fire is burning up ad budgets.

In an interview with an Italian newspaper, Google Chairman Eric Schmidt said the company was working on a technologically advanced tablet.

in an interview with an Italian newspaper, Schmidt credited Apple's Steve Jobs with understanding better than anyone the revolutionary potential of the tablet and went on to create the iPad, which Schmidt called "an amazing product."

However, Schmidt said it's the nature of capitalism to compete and Google will be trying to go Apple one better when its tablet debuts.

Schmidt said the Android-based Google tablet will compete with the next-generation iPad and such premium Android slates as the Asus Eee Pad, not with the more humble Kindle Fire and Barnes & Noble Nook.

The Fire's on fire

OK Eric, but the Kindle Fire from Amazon is not only selling in huge numbers, it's also blazing away on the advertising front. 

According to data from mobile ad network Millennial Media, the Fire has seen its ad impressions grow at an average daily rate of 19% since its launch. In fact, the Kindle Fire’s impression growth on the platform has slightly outpaced that of the iPad when that device launched in early 2010.

"We're not just seeing millions of impressions, we're seeing a monthly run rate of hundreds of millions of impressions," said Millennial’s report of the Fire.

Forget smartphones, tablets are taking over.  Google is the latest to enter the tablet derby, saying it will have a media tablet "of the highest quali...

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Demise of AT&T/T-Mobile Deal Leaves Questions for Consumers

Consumer groups and other activist organizations swooned in ecstasy as AT&T bowed to pressure from the Obama Administration and abandoned its attempt to take over T-Mobile.

  • Parul P. Desai, policy counsel for Consumers Union said, “It’s an early holiday gift for consumers. From the first day that this deal was announced, we have warned regulators, lawmakers, and consumers of the dangerous consequences of this merger."
  • Free Press President and CEO Craig Aaron said, "The Obama administration deserves praise and credit for standing up to AT&T's relentless lobbying and propaganda. And the American public can breathe a sigh of relief that this time the public interest trumped AT&T's self-serving attempt to kill off what little competition remains in the wireless market."
  • Media Access Project’s Senior Vice President and Policy Director Andrew Jay Schwartzman said: "While AT&T surely will say that it must quickly obtain additional spectrum, the filings in this case show that AT&T has been hoarding spectrum.  It should instead use its existing spectrum more efficiently and expedite deployment of more efficient LTE technology."

They should perhaps have talked to some T-Mobile customers.

"T-Mobile customer care representatives explained to me that it is not their problem if I do not have reception in an area where I moved to," said Jessica of Mulberry, Fla., one of the thousands of customers who have written to ConsumerAffairs.com complaining of billing disputes, network problems, defective phones and poor customer service.

"They also misinformed me about my contract telling me that only one of the phone lines was going to be extended. Instead, they extended all four of my contracts and will charge me $800 to cancel all four lines!" Jessica said.

Union endorsed deal

The Communications Workers of America had endorsed the merger, saying it would create 96,000 American jobs and protect existing workers from losing their jobs.

The CWA said opponents of the merger were "misguided" and wrong in their contention that previous mergers had created job losses at AT&T Wireless.

The deal would have created the largest single wireless carrier and, according to AT&T, would have hastened the deployment of wireless broadband and 4G LTE cellphone service to underserved areas.

It might also have brought relief to AT&T customers, long plagued by dropped calls and other symptoms of a network that's trying to carry more data than it can accommodate -- trying to put three gallons into a two-gallon bucket, to put it simply.

The Justice Department, FCC and other opponents didn't buy the argument, though, predicting that AT&T would just gobble up T-Mobile, concentrate its resources in the most profitable (i.e., most populous) areas, leaving rural and other underserved areas no better off than they are now.

But at this point, arguing over what might have been is like arguing over whether to buy a Saab or a Saturn.  The question is: what does the deal's demise mean for consumers?

Now what?

It's not likely AT&T wireless customers will see any immediate effects from the breakdown.  That's not necessarily good, of course, since many AT&T customers are in a perpetual snit over dropped calls, slow data and other annoyances.

T-Mobile customers, on the other hand, may want to consider their options.  T-Mobile's German owners, Deutsche Telekom AG, have been reluctant to make the long-overdue investment that's needed to expand the company's network and compete vigorously in the marketplace and CEO René Obermann isn't painting a rosy picture.

Just hours after the deal went south, Obermann said that long-term challenges for T-Mobile remain and confessed he found it  "not understandable" that U.S. regulators had opposed the deal so vigorously.

Obermann walks away with a $3 billion break-up fee and a few bushels of spectrum from AT&T but that's hardly enough to awaken much enthusiasm in Deutsche Telekom executives, who have their hands full with their much more successful European properties and don't want to divert resources to what increasingly looks like a failing U.S. property.

With the AT&T deal in tatters, T-Mobile is the only national carrier that isn't building its own LTE network, and also the only one not selling the iPhone. This isn't exactly great for business, which may be why T-Mobile lost 850,000 customers in the first nine months of the year.

Although opponents of the merger heaped effusive praise on T-Mobile, it is hardly breaking new trails in pricing, customer service or technical excellence.

It's hard to see how Obermann and company will be motivated to put much more into the venture, given the back-breaking costs of competing more effectively.  

Even more galling is the barrier to exit the Germans now face.  Having been blocked from selling their company for reasons best described as inexplicable to European telecom executives, they may be tempted to view the entire exercise as futile.

Consumer groups and other activist organizations swooned in ecstasy as AT&T bowed to pressure from the Obama Administration and abandoned its attempt t...

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Telemarketer to Pay $500,000 for Do Not Call Violations

An Illinois-based telemarketing firm will pay $500,000 to settle Federal Trade Commission charges that it interfered with consumers' requests to be placed on company-specific do not call lists and transmitted deceptive Caller ID names.

The FTC alleged that Americall Group, Inc. violated the FTC's Telemarketing Sales Rule.

"When it comes to the Do Not Call provisions, compliance is not rocket science," said David C. Vladeck, Director of the FTC's Bureau of Consumer Protection. "It includes honoring a consumer's request to be placed on a specific do not call list, and not messing with anyone's caller ID. Legitimate companies comply with the law every day."

Americall, headquartered in Naperville, Illinois, is a third-party telemarketer that specializes in calling consumers on behalf of major banks, credit card issuers, insurance companies, and other financial institutions. The company also conducts telemarketing campaigns for firms selling household products, magazine subscriptions, beauty products, and educational materials.

Under the FTC's Telemarketing Sales Rule, a company may not call a consumer who has requested not to receive calls from that particular seller. The Rule also makes it illegal to deny or interfere with a consumer's right to be included on a company-specific do not call list.

Ignored requests

According to the FTC's complaint, Americall trained its representatives to avoid honoring the requests of consumers who asked to be put on a company-specific do not call list of an Americall client.

For example, Americall's training manual instructed its telemarketers that when a consumer said, "Don't call again" or "Don't call me back," the employee should not place the consumer's name and number on a client's do not call list.

The FTC's complaint also alleges that Americall transmitted false Caller ID information to consumers. In many cases, the Caller ID information did not name Americall or its client as the caller. For instance, when telemarketing on behalf of an insurance company, Americall masked the company's identity by transmitting the name "Gas Rebate Center" over Caller ID. The Telemarketing Sales Rule requires telemarketers to transmit accurate Caller ID information so consumers can know who is calling before they pick up the phone.

The settlement order resolves the FTC's charges against Americall. In addition to imposing the $500,000 civil penalty, it prohibits the company from continuing to engage in the conduct alleged in the complaint and from violating any provision of Telemarketing Sales Rule in the future.

An Illinois-based telemarketing firm will pay $500,000 to settle Federal Trade Commission charges that it interfered with consumers' requests to be placed ...

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Consumers Lack Protections for Mobile Payments

Most cell phone and tablet users can purchase digital goods and charge them to their monthly bill or prepaid phone account. But they may not get the protections they need to limit their financial liability if something goes wrong with the transaction.

The protections consumers receive will vary depending on their wireless carrier's policies and what's in their cell phone contract, according to a new analysisby Consumers Union.

"Consumers using mobile payments should get the same strong protections they currently enjoy when they make purchases with a credit card or debit card," said Michelle Jun, senior attorney for Consumers Union, the nonprofit advocacy arm of Consumer Reports. "But we found that consumer rights can vary widely between wireless carriers and the protections carriers claim to provide are often nowhere to be found in customer contracts."

In May 2011, Consumers Union called on the top wireless carriers to strengthen their contracts to protect consumers in the event that their phone is lost or stolen or if a merchant makes a billing mistake or the customer is not satisfied with a purchase. The consumer group urged the carriers to provide the same strong protections guaranteed by law when consumers use a credit card or debit card.

In addition, Consumers Union pressed the companies to provide consumers across the country with the same protections California phone customers are entitled to receive as a result of regulations issued by the state's Public Utilities Commission (PUC).

Carriers say it's adequate

Since May, Consumers Union has been in communication with representatives from AT&T, Sprint, T-Mobile, and Verizon Wireless to find out how they handle disputed mobile payment transactions. All four carriers maintain that they provide ample protections for consumers.

However, Consumers Union found that the protections these carriers provide fall short of what consumers get when they use credit cards and debit cards or when California consumers report a disputed charge on their phone accounts. In addition, many of the protections that wireless carrier representatives described to Consumers Union are not disclosed in customer contracts, making it difficult to know whether consumers can count on these safeguards when problems arise.

"As new mobile payment options become available, consumers are better off sticking to services linked to credit cards or debit cards, which come with strong protections required by law," said Jun. "If wireless carriers want consumers to have confidence in direct carrier billing programs, they should strengthen their contracts with the protections consumers need."

For more details, see How Top Wireless Carriers Compare on Consumers Protections for Mobile Payments.

Most cell phone and tablet users can purchase digital goods and charge them to their monthly bill or prepaid phone account. But they may not get the protec...

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Google Launches Currents, a Digital Newstand for Phones & Tablets

So here's the latest entrant in the war for your smartphone and tablet: Google Currents.

It's a new ad-supported app for Android and Apple devices that displays magazines in a colorful, easy-on-the-eye format or, as Google put it, "swipable magazine format."

Most major publishers are represented, with titles including Forbes, Fast Company, The Daily Beast, Huffington Post and ABC News, among many others.

For anyone who has tried to read a text-only magazine on their smartphone, this should be a great leap forward.  Plain old text is OK for a few things but is a pretty dull way to read a magazine.

Colorful ads

Thanks in large part to the graphic display, there's room for colorful ads and therefore, subscriptions are free, since the project will be supported by advertising, with Google and the publishers splitting the proceeds.

Publishers, you'll recall, salivated when the iPad was introduced, thinking that at last they would once again be able to gouge both subscribers and advertisers.  Nice idea.  Too bad it didn't work.

Current's competitors include Apple's Newsstand, Yahoo's Livestand and a number of smaller players, including Flipboard.

We decided to take a look at it on our Samsung 'Droid.  Even with a strong Verizon 4G LTE connection, it took seemingly forever, about 20 minutes, to load the app and get it running. Once that was done, we paged through Fast Company, reading about -- what else? -- Currents.

The presentation is indeed easy on the eyes and the entire experience is much more like reading a magazine than staring beady-eyed at endless rows of unformatted text.  Pages load relatively quickly, although there are those pregnant pauses we have all come to anticipate.  Maybe someone should write an app to fill the idle seconds while pages and videos download? SuperQuickChess anyone?

So here's the latest entrant in the war for your smartphone and tablet: Google Currents.It's a new ad-supported app for Android and Apple devices that ...

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States Join Fight Against Robocalls to Cell Phones

The National Association of Attorneys General (NAAG) has sent a letter signed by 54 state and territorial Attorneys General urging Congress to reject a bill that would allow robocalls to cell phones.

The Mobile Informational Call Act of 2011 would amend the Telephone Consumer Protection Act (TCPA) and allow debt collectors and other businesses to robocall consumers on their cell phones. Additionally, H.R. 3035 would preempt state laws regulating junk faxes, unsolicited text messages, Do Not Call registries, and automated calls.

“Our offices protect consumers by enforcing the TCPA and state laws concerning telephone solicitations, automated calls, junk faxes and text messages," the attorneys general wrote. "Over at least the last 22 years, Congress and the states have enacted strong laws to protect consumers from unwanted and intrusive robocalls.

"Currently, federal law bans robocalls to cell phones unless the consumer gives prior express consent. H.R. 3035 would change the law and undermine federal and state efforts to shield consumers from a flood of solicitation, marketing, debt collection and other unwanted calls and texts to their cell phones.”

Harmful implications

The letter further describes the harmful implications the legislation will have on consumers.

One concern is that H.R. 3035 would shift the cost of unwanted calls – such as debt collection and marketing calls – to consumers, placing a greater burden on low-income consumers who cannot afford to pay. H.R. 3035 would also cause an increase in robocalls to cell phones from businesses and charities.

The Attorneys General propose instead that Congress “make two small but significant changes to the TCPA to better protect consumers:

  • protect consumers’ privacy by clarifying that prior express consent to robocalls must be obtained in writing; and
  • eliminate any suggestion from the TCPA that state statutes regulating interstate telephone and fax harassment are preempted.”

The National Association of Attorneys General (NAAG) has sent a letter signed by 54 state and territorial Attorneys General urging Congress to reject a bil...

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Last Again! Once More, AT&T Places Dead Last in Customer Satisfaction

For a second straight year, AT&T finished last in Consumer Reports' cell phone customer satisfaction survey. The non-scientific poll questioned 66,000 Consumer Reports subscribers.

The survey found that consumers rated the smaller national and regional mobile providers higher than their larger competitors -- AT&T, Verizon Wireless, Sprint and T-Mobile. Heading the list in customer satisfaction is Consumer Cellular, a small national carrier. Ironically, this first-place finisher uses last-place AT&T's national network.

U.S. Cellular, which only operates in half the U.S., finished second in the poll.

TracFone was rated one of the better carriers among prepaid cell-phone service providers, with Straight Talk, T-Mobile and Virgin Mobile. All of the top four prepaid carriers received above average scores for value. Readers who prepaid for their cell-phone service were more satisfied overall than respondents with standard service.

“Our survey indicates that prepaid customers and those with smaller standard service providers are happier overall with their cell-phone service,” said Paul Reynolds, electronics editor for Consumer Reports. “However, these carriers aren’t for everyone. Some are only regional, and prepaid carriers tend to offer few or no smart phones. A major carrier is still a leading option for many consumers.”

Nobody's perfect

Indeed, ConsumerAffairs.com has logged a number of complaints from nearly every cell phone company's customers over the years. Ira, of Boone, Iowa, said Consumer Cellular charged him for a monthly texting plan, even though he didn't order it and doesn't even know how to text.

"I will ask the credit card company to enter into the dispute process," Ira told ConsumerAffairs.com. "In my view, I should not have to pay for any service I never ordered!"

TracFone, meanwhile, is also the source of regular consumer complaints.

"I bought a TracFone last month and the reception is so bad that nobody can hear me on the other end," NiVonne, of Winchester, Va., said. "I have spent most of my minutes repeating myself when I use the phone. I phoned customer service, which is a total joke."

Of the four major U.S. national cell-phone standard service providers, Verizon and Sprint were the better-rated carriers in the Consumer Reports poll. Verizon had an edge over Sprint in texting and in knowledgeable support staff, but Sprint rated better in value. T-Mobile was below Verizon and Sprint but continued to rate significantly better than the higher-priced carrier AT&T, which recently withdrew its application to the FCC to merge with its better rival.

Consumer Reports' new cell phone customer satisfaction survey...

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Court Refuses Apple's Request To Block Samsung Tablet

A U.S. District Court in San Jose, Calif., has rejected Apple's motion to ban the sale of the Samsung Galaxy Tab 10.1 tablet on the grounds it violates Apple's patent of the iPad 2.

The ruling was supposed to remain sealed but was accidentally posted to the court's website over the weekend, and thus made public. The ruling means the Samsung 10.1 tablet, as well as Samsung's Infuse 4G, Galaxy S 4G, and Droid Charge smartphone can be sold in time for the holidays.

Apple filed the suit claiming Samsung copied the iPad when it designed its new tablet computer. Once the ruling had been reported, Samsung issued a statement saying the ruling “raised substantial questions about the validity of the Apple patents. Samsung argued that it's design is more of a matter of function, not a copy of the iPad's technology.

More than one way

Apple countered that there is more than one way to design a tablet and that rather than come up with its own design, Samsung simply stole and implemented Apple concepts.

Apple presented an expert witness – independent industrial designer and inventor Cooper Woodring – who testified that the iPad's black rectangular frame, which is replicated on the Galaxy Tab, is ornamental in nature and has no other function.

Meanwhile, a court in Australia Friday refused to lift a ban on the sale of the Galaxy tablet until Apple had a chance to file an appeal. However, the court said it might rule on the request by December 9.

A court has refused to block sales of the Samsung Galaxy Tab 10.1 in the U.S....

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Is Your Cell Phone Spying On You?

Sen. Franken

Sen. Al Franken (D-Minn.) is calling for an investigation into spyware on cell phones. He's responding to recent reports that mobile software company Carrier IQ is working with phone manufacturers and cellphone carriers to install spying software on Androids and iPhones.

“Consumers need to know that their safety and privacy are being protected by the companies they trust with their sensitive information,” Franken said. “The revelation that the locations and other sensitive data of millions of Americans are being secretly recorded and possibly transmitted is deeply troubling."

Independent researcher Trevor Eckhart recently said he has documented that Carrier IQ’s software has the ability to record actions that you take on your phone — numbers that you dial, letters that you press when texting or searching the Web, menu buttons that you push — and send it all back to the company’s headquarters.

The software may also be present on models made by BlackBerry, Nokia and other manufacturers.

Carrier IQ bills itself as "the leading provider of Mobile Service Intelligence Solutions" and says it provides carriers and manufacturers "unprecedented insight into their customers' mobile experience."

On its Web site, the company says that by using itself system, carriers can not only measure large-scale trends but can "drill down to specific instances, giving you the insight your specialists need to make a difference." It claims to have its system enabled on more than 141 million phones.

AT&T, Sprint, HTC, and Samsung have all confirmed that that their mobile phones integrate the Carrier IQ software. 

Both AT&T and Sprint insisted that the software is being used solely to improve wireless network performance while phone makers HTC and Samsung said they were integrating the software into their handsets only because their carrier customers were asking for it.

T-Mobile said it uses Carrier IQ's software but described it as a diagnostic tool to troubleshoot device and network performance. Apple said that while it has used Carrier IQ’s network diagnostic software in the past, it recently stopped supporting it and plans to remove it from its mobile devices in a future software update. 

Google said it had no ffiliation with Carrier IQ and said that its Android operating system "is an open source effort and we do not control how carriers or OEMs customize their devices.”

Lot of questions

"This news underscores the need for Congress to act swiftly to protect the location information and private, sensitive information of consumers. But right now, Carrier IQ has a lot of questions to answer,” Franken said.

In a letter to Carrier IQ President and CEO Larry Lenhart, Franken asked Lenhart to explain exactly what information the software records, whether that information is transmitted to Carrier IQ or to other companies, and whether that information is shared with any third party, among other things.  He also asked if Carrier IQ would allow users to stop this tracking.

Earlier this year, Franken introduced the Location Privacy Protection Act, which would require companies like Connect IQ to obtain the explicit permission of customers before tracking their location information or sharing that information with third parties. The legislation has already garnered significant support in the Senate and from prominent privacy and consumer protection advocates.

Outrageous

Free Press Internet Campaign Director Josh Levy called it "outrageous that an American company is monitoring the use of our phones with spying technologies that you'd expect to see in China, not the U.S."

"Activists from Cairo to New York to Los Angeles are using their phones to broadcast images of cops wielding pepper spray, handcuffed journalists and squares full of protesters," Levy said. "Actions that breach the integrity of our mobile devices violate our freedom to communicate. We must ensure that the most important movements of our time aren’t compromised by gatekeepers with little regard for our free speech or privacy.

"Congress and the Department of Justice must investigate these shady practices. We have a right to know what Carrier IQ is doing with our information, and we have a right to use our mobile phones without fear of data spies."

Concern is growing about spyware on cell phones. Recent reports have charged that mobile software company Carrier IQ is working with phone manufacturers an...

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iPhone 4 Burns On Australian Airliner

Passengers aboard an Regional Express (Rex) flight in Australia were alarmed this week when black smoke began filling the cabin.

The airline said a quick check found that the smoke was coming from a passenger's iPhone 4, which was also glowing. In accordance with company standard safety procedures, the airline said the flight attendant on the Lismore to Sydney flight carried out recovery actions immediately and “the red glow was extinguished successfully.”

Rex did not disclose whether the device was turned on at the time. The damaged iPhone has been turned over to Australia's Civil Aviation Safety Authority (CASA) for investigation.

The airline released a photograph of the iPhone, showing large cracks on the back case and dark, charred areas around the edges of the device.

The plane, a Saab 340 aircraft, had just landed and was not in the air when the iPhone began smoking. No one was injured but the cabin was described as being filled with “dense, black smoke.”

It's the first reported incident of a smartphone overheating to the point of catching fire on an airline flight. However, notebook computers have been known to cause fires, destroying property on the ground.

In 2007 an Australian consumer reported his Macbook ignited in his home, causing extensive damage. In 2005 the U.S. Consumer Product Safety Commission issued a warning that cell phone batteries run the risk of exploding and catching fire.

Smartphone catches fire on aircraft...

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What's On Your Mind? Verizon Wireless, Memory Lane, Kohl's

It turns out the new iPhone 4S was a very popular item on Black Friday. There are reports of Apple stores selling out. Even consumers who successfully ordered the devices from Verizon Wireless are now not so sure when they'll receive them.

“I ordered two iPhone 4s on November 25 and was told due to the holiday, the first one would arrive November 28 and the second would ship December 9,” Donna, of Washington, DC, told ConsumerAffairs.com. “I called November 28 to verify shipment, and now have been told that they have no idea when they will ship. They knew when to charge for them!! Right away! They just said I will get a email when shipped--no idea when that might be, due to the holiday.”

Our most recent check of the Verizon Wireless website shows some iPhone models are still slated to ship by December 9.

It's automatic

Jean, of Bennington, Neb., was confused when, after reviewing two years of credit card statements found regular charges for Classmates.com, now known as Memory Lane.

“I made a one time, three-month renewal two years ago, Jean said. “After several years of not using Classmates, when I went on line several questions were asked in order to get to the information I wanted. Apparently within these questions there was a loophole which made it possible for them to obtain permission to withdraw the membership every three months without my being fully aware that this was their intention. A phone call to them ended my membership with a refund of only one three-month payment.”

For anyone who doesn't understand by now, memberships to Memory Lane – and many other subscription services – auto renew. You have to proactively cancel the membership by doing what Jean finally did. We just hope she got a confirmation number.

Missing gift

Mary Ann, of Burlingame, Calif., had an unhappy Cyber Monday shopping experience when she tried to buy the Baby Einstein Deluxe Read and Play Gift Set that she found on Kohl's website for $39.99.

“I tried to order it for about half an hour, thinking it was Cyber Monday, things may have been slow, but still no progress,” Jean told ConsumerAffairs.com. “I then called the Kohl's Customer Service, after 15 minutes, including the customer service person calling the store in Millbrae, they said they don't have it and never had it. She suggested I call the store manager. I did. She stated they don't have it and she would try to locate it. I asked her does that mean your store never had it, she said without the sku number she could not tell me.”

Mary Ann believes it was deceptive to advertise a product the store doesn't have, but she should keep in mind, many big chains sell merchandise on their websites they don't stock in stores.   

Here is what's on consumer's minds today: Verizon Wireless, Memory Lane, Kohl's, It's automatic and Missing gift....

If Nothing Else, Consumers Still Sold on Technology

Consumer confidence in technology reached its highest level of the year in November as confidence in the economy sunk to an all-time low, according to Consumer Electronics Association (CEA).

"Tech continues to grow and remains well above year-over-year levels on the heels of the strongest monthly gains for electronics and appliance retail sales since November 2009," said Shawn DuBravac, CEA's chief economist and director of research. "Strong retail sales in October, coupled with growing consumer intentions to purchase innovative new technologies, is well timed as we move fully into the holiday shopping season this week."

Consumer sentiment around technology increased nearly two points this month. The CEA Index of Consumer Technology Expectations (ICTE) rose to 91.2, its highest level since December 2010. The ICTE, which measures consumer expectations for technology spending, is also up nearly 12 points from this time last year.

While consumer confidence in technology is at its highest point in 11 months, consumer confidence in the overall economy dropped to an all-time low. The CEA Index of Consumer Expectations (ICE) fell to 156.6 in November, down three points from last month and the lowest level since the CEA Index began in 2007. The ICE, which measures consumer expectations about the broader economy, is down more than 10 points from this time last year.

"The Super Committee's inability to come to a debt reduction compromise in Washington is clearly impacting sentiment across the country," said DuBravac. "Consumers remain uncertain about the near term and long term viability of the U.S. economy."

The CEA Indexes comprise the ICE and ICTE, both of which are updated on a monthly basis through consumer surveys. New data is released on the fourth Tuesday of each month. CEA has been tracking index data since January 2007.

Consumer confidence in technology reached its highest level of the year in November as confidence in the economy sunk to an all-time low, according to Cons...

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Union Defends AT&T/T-Mobile Merger

The proposed merger of AT&T and T-Mobile is shaking up some traditional alliances.  Some consumer groups, most notably the Consumer Federation of America, have supported the merger while others denounce it as anti-competitive.

Just yesterday, Attorney General Eric Holder told a Senate committee the Justice Department was "ready and eager" to fight the merger in court.

But now an analysis by the Communications Workers of America (CWA) concludes that the AT&T/T-Mobile merger will bring back 5,000 net quality jobs from overseas and create as many as 96,000 additional quality jobs in the buildout of high speed wireless broadband to 97 percent of the population.

The report will be filed today with the Federal Communications Commission, the CWA said.

Opponents of the merger have used inaccurate and false comparisons in their jobs numbers, the report alleges. Opponents include Sprint, which made a failed bid to buy T-Mobile, Public Knowledge, and others.

The claim that the merger will eliminate jobs stems from a faulty and convoluted analysis of wireline and wireless employment characterized by “sloppy research and the inability to distinguish between the change in the number of wireline and wireless jobs” in a Sprint-commissioned study, CWA said.

Instead, the CWA report said, the merger will create up to 96,000 new jobs based on AT&T’s commitment to build out high speed wireless broadband to 97 percent of the population, and AT&T’s commitment to bring back a net 5,000 quality wireless jobs to the United States.

Major commitments

CWA said AT&T also has made additional specific commitments to protect non-management workers:

  • No call center worker employed at either AT&T Mobility or T-Mobile at the time of the merger will lose their jobs because of the merger.
  • Job offer guarantees will be provided for all T-Mobile non-management workers whose jobs are affected by the merger.

CWA has a long history of negotiating and enforcing such commitments with AT&T, including following the company’s acquisition of Centennial and Dobson, and with the Cingular-AT&T Wireless merger.

“The process used a combination of attrition and lateral transfers to nearby locations to secure jobs for current employees,” the report noted, adding that CWA has experience negotiating and enforcing such commitments with AT&T and that they have proven to be effective.

“The AT&T/T-Mobile merger will create, save or retain more U.S. jobs than a stand-alone T-Mobile which is already on a downward spiral…A Sprint/T-Mobile merger would have been a disaster in terms of technology and finances, and would led to a decline in U.S. jobs,” since Sprint outsources its network management and up to 70 percent of customer contact work, the report found.

Other benefits to the AT&T/T-Mobile merger cited by CWA:

  • It will accelerate the buildout of high-speed wireless broadband to 97 percent of the population, enabling an additional 55 million people, especially in rural and underserved areas, to share in the benefits of Internet technology.
  • AT&T will develop T-Mobile’s assets and offer T-Mobile customers the latest in technology.
  • AT&T and T-Mobile utilize compatible technologies.
  • AT&T has a demonstrated commitment to workers’ rights, supporting management neutrality that enables workers to make a free and fair choice about union representation and bargaining rights.

The proposed merger of AT&T and T-Mobile is shaking up some traditional alliances.  Some consumer groups, most notably the Consumer Federation of...

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Justice Department 'Ready and Eager' to Go After AT&T

Think the fix is in on the $39 billion AT&T/T-Mobile merger?  Think again. Attorney General Eric Holder says his antitrust litigators are "ready and eager" to fight the case in court.

The Justice Department filed suit to block the deal in August, claiming the proposed merger would be anticompetitive.  It would reduce the number of national cell phone companies from four to two and Holder says it would raise prices for consumers.

"The combination of AT&T and T-Mobile would result in tens of millions of consumers all across the United States facing higher prices, fewer choices and lower quality products for mobile wireless services,” said Deputy Attorney General James M. Cole said when the suit was filed.  

“Consumers across the country, including those in rural areas and those with lower incomes, benefit from competition among the nation’s wireless carriers, particularly the four remaining national carriers. This lawsuit seeks to ensure that everyone can continue to receive the benefits of that competition.”

Lobbying campaign

AT&T has claimed the deal would help consumers, saying it would speed the deployment of high-speed Internet access nationwide by making more spectrum space available to AT&T.

The company has unleashed a ferocious lobbying campaign aimed at persuading Congress and the Obama Administration that the deal is a win for consumers.

It has also recruited non-profits and even consumer groups to weigh in on its behalf.  Critics say it has done so through the skillful application of funds rather than a compelling argument.

But the effort has so far had no visible impact on the government's stance. Holder appeared at a Senate hearing today and said his department is  ready for action.  

"There is a trial team that is in place and they are ready and eager to go to court,'' he said.

Consumers' view

Besides its lobbying efforts, AT&T has launched an advertising barrage aimed at winning the hearts and minds of consumers but so far with little notable effect.

“Ask the T-Mobile users. We all know what saved AT&T. Apple did! That's how come they can throw all that money around. Less competition is not the American way,” a consumer named Dave said in a recent ConsumerAffairs.com posting.

“This could raise cell phone rates for everyone, not just T-Mobile users,” another poster, Daniel, said. “Less compition means higher prices, its basic economics. Let's band together and stop this, everyone speak out.”

Another poster, Craig, chimed in with “AT&T + T-Mobile = better reception? Oh, that's a good one.”

Think the fix is in on the $39 billion AT&T/T-Mobile merger?  Think again. Attorney General Eric Holder says his antitrust litigators are "ready a...

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Best Buy Buys Out Its Mobile Partner

Best Buy is expanding its Best Buy Mobile venture, buying out its European partner and shelving plans to open more big-box stores outside the U.S.

Best Buy Mobile is built around an "impartial advice" concept, promoting its blue-shirted store personnel as experts who can help you find just the right cell phone and wireless plan.

It's been one of the few bright spots for Best Buy, which has outlasted Circuit City and other electonics retailers only to face a steady erosion of its core business to discounters and Amazon.

Best Buy may indeed be onto something.  ConsumerAffairs.com analyzed about 20,000 consumer comments posted on Twitter, Facebook and other social media over the last year and found net sentiment for Best Buy Mobile as high as 96% positive.

ConsumerAffairs.com readers have submitted 21 negative reviews in the same time period compared to more than 172 for AT&T Wireless, more than 300 for Verizon Wireless and more than 200 for Sprint.

$1.3 billion 

Best Buy will be paying  $1.3 billion to buy out Carphone Warehouse Group Plc, enabling it to keep all future revenue from the fast-growing mobile business.

The Best Buy Mobile business has grown from a standing start to include mobile stores in 1,100 Big Box stores and almost 250 standalone Best Buy Mobile outlets in the U.S.

That contrasts with a 30% drop in Best Buy's quarterly sales of consumer electronics.

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Sentiment analysis powered by NetBase

Best Buy is expanding its Best Buy Mobile venture, buying out its European partner and shelving plans to open more big-box stores outside the U.S.Best Bu...

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Illinois Sues Marketers Of Pre-Paid Calling Cards

Believe it or not, not everyone has a cell phone. And when you need to make an international call, sometimes your cell phone just won't get it done.

That's one of the reasons consumers purchase prepaid calling cards, which admittedly were much more common in the days before cell phones became mainstream. But a lot of consumers who buy these cards report problems.

"The calling cards are ripping people off,” Akilah, of Camden, N.J., told ConsumerAffairs.com.

"As soon as your call connects, it disconnects and your balance is zero. When calling the customer service department, they tell you to allow two hours and your time will be put back on your card. That's a lie! I've been robbed for over $52 this month alone. I know other people that this has happened to.”

Fiona, of Livermore, Calif., says she has also experienced calling cards that don't work. She said she had problems with two different companies and neither, she said, was helpful.

“They are not willing to correct the error or refund my money or at least replace it to a better card,” Fiona said. “They both said to me that there's is nothing they can do or help me. This is very wrong, they took my money and gave me bad products.”

Illinois complaints

In Illinois, state Attorney General Lisa Madigan has heard similar complaints from her constituents. She has filed lawsuits against Chicago- and California-based companies for marketing prepaid calling cards to consumers, particularly to immigrant communities, that offer up to 50 percent fewer minutes than advertised and are riddled with hidden usage fees.

"Consumers need to read the fine print on prepaid calling cards," Attorney General Madigan said. "Their advertising is extremely misleading about the actual number of minutes offered, and they're loaded with hidden fees that make their value questionable at best."

The suits were filed against Nobel Tel LLC and NTI Inc., a Chicago company. Madigan said the companies targeted marketing at immigrant consumers seeking to make international calls.

In the suit against NTI, Madigan alleges the company's prepaid cards provided an average of 50 percent fewer actual minutes of talk time than the total time advertised. The company sells cards at neighborhood convenience and telecommunication stores in the Chicago area.

She also says the cards, marketed through Illinois retailers, are riddled with hidden fees – from hang-up fees to daily usage charges. Madigan's investigation revealed that some cards misrepresented the actual amount of call time available.

Units, rather than minutes

The cards' packaging referred to "units" of time as opposed to actual minutes, where one "unit" represented only a portion of a minute of international talk time.

Madigan is asking the court to prohibit the companies from selling, manufacturing, distributing or marketing prepaid calling cards in Illinois, obtain restitution for affected consumers and impose civil penalties on the defendants for the allegations laid out in each of the complaints.

Believe it or not, not everyone has a cell phone. And when you need to make an international call, sometimes your cell phone just won't get it done....

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Bill Would Allow Robo-Calls To Cell Phones

There's a move afoot in Congress to amend the Communications Act  to allow businesses to make robo-calls to your cell phone for “informational purposes.”

Supporters of the bill, introduced in the House of Representatives in September, say it's not as sinister as it sounds. Businesses simply want to be able to call customers on their cell phones to remind them of a doctor's appointment or to pick up their order.

Why robo-calls? Because, they say, it's much more efficient to have machines place the calls. It's standard practice now for landlines and the legislation would simply allow them to expand the practice to cell phones, which a growing number of consumers now use exclusively.

Indiana against it

Indiana Attorney General Greg Zoeller thinks it's a bad idea, since the legislation specifically states that the federal law would supersede any state law against the practice.

When the House Subcommittee on Communications and Technology convened hearings on the bill, Zoeller showed up to testify against it.

"Indiana has spent more than 20 years protecting telephone privacy from the 1988 Auto Dialer law to the addition of cell phones to the Do Not Call law in 2011," Zoeller said. "The success of our statutes have made our citizens appreciate their privacy and made them sensitive to harassing phone calls. Consumer protection is traditionally an issue of state authority and we should take this opportunity strengthen the Telephone Consumer Protection Act and not weaken it."

Would overturn Indiana's Do Not Call Law

Zoeller says he's concerned the proposed legislation would strike down Indiana's Do Not Call law. If passed, states could not enforce their more strict laws against junk faxes, prerecorded calls or text messages.

The legislation is sponsored by Rep. Lee Terry (R-NE), who told Zoeller he is also concerned about this proposal overriding or preempting state laws. Terry asked Zoeller to help draft language that would protect states' powers.

While Zoeller agreed to do so, he said he remains cautious because assurances were also made during the drafting of the 1991 Telephone Consumer Protection Act (TCPA) that federal law would not override or preempt state law - but a federal court recently struck down an Indiana statute on preemption grounds.

State laws at risk

"While preemption of such state laws has not been a problem up to this point, Indiana's recent litigation experience with Patriotic Veterans Inc., demonstrates that states and their residents cannot take their residential privacy protections for granted any longer," Zoeller said.

Patriotic Veterans Inc. challenged Indiana's Automatic Dialing Machine Statute in September. The U.S. District Court for the Southern District of Indiana ruled the state's ban on robo-calls playing political messages cannot be enforced if the calls originate outside Indiana, because federal law allows for these types of calls. Zoeller is appealing the decision.

Businesses want to be allowed to place informational calls to cell phones...

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States Want Feds to Crack Down on Cramming

The federal government should be doing more to protect consumers against the phone bill fraud known as cramming, the attorneys general from 17 states say.

"Consumers ... deserve action against the predatory and exploitative charges that drive up phone bills and impose burdensome costs in money, time and energy to correct," New York Attorney General Eric T. Schneiderman said. "My colleagues and I strongly urge the FCC to adopt effective regulations that stop cramming, and provide consumers with relief."

Unauthorized third-party charges on telephone bills cost consumers upwards of $2 billion per year, a recent Senate report found.

‘Cramming’ occurs when third parties – other than the phone service provider – add unauthorized charges to phone bills for non-call related services like email, website hosting, discount buying programs or voicemail services. 

Investigations by the attorneys general, as well as complaints received by their offices, reveal that consumers do not intend to purchase these services and rarely make use of them. In addition, most consumers are unaware that they are exposed to such fraudulent billing practices just by using a wireless or landline service. 

Disclosure not enough

The rules currently under consideration by the FCC would be limited to landlines, and rely only on better phone bill disclosures and options to allow consumers to request blocks on such charges. In comments filed with the federal agency, the attorneys general explained that based on experiences in their states, federal anti-cramming regulations need to be stronger than those proposed. 

Given that landline ‘cramming’ charges are often phony and imposed without consumers’ consent, the AGs urged the FCC to ban all non-telephone, third-party charges on landline telephone bills. If the FCC fails to implement such a ban, then the AGs suggested that landline telephone companies be required to automatically block all third-party charges unless and until the consumer opts to accept such charges for a specific vendor by consenting through a phone call to their telephone company.

Consumers would still be free to purchase these third-party services through more traditional means, such as by credit card.

The attorneys general also called on the FCC to extend its regulations to protect wireless telephone users, as more and more consumers rely exclusively on wireless telephone service. The coalition advised the FCC to require wireless telephone service providers to obtain consumer consent for each third-party charge, verified by either call or text, before being billed.  The Attorneys General also recommended that all wireless consumers be provided the option of blocking all third-party charges from their account, at no cost.

The federal government should be doing more to protect consumers against the phone bill fraud known as cramming, the attorneys general from 17 states say....

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Danish Study Finds No Increased Cancer Risk in Cellphone Users

A Danish study said to be the largest of its kind finds no association between long-term cellphone use and tumors of the brain and central nervous system.

Researchers from the Danish Cancer Society and the International Agency for Research on Cancer (IARC) reported in the BMJ (British Medical Journal) that they studied more than 358,000 people over 18 years. 

The study was funded by the Danish government and did not receive any financial report from the cellphone industry, the researchers said.

With more than 5 billion cellphone subscriptions globally, there has been increasing concern about the longterm health effects of exposure to radiofrequency emissions from the phones.

The Danish study focused on Danes aged at least 30 years who were born in Denmark after 1925. They divided them into two groups, those who had been subscribers since 1995 and people who had a cellphone before 1995. 

Among the findings were these:

  • 10,729 nervous system tumors were reported from 1990 to 2007.
  • Brain and nervous system tumor rates among long-term cellphone users (at least 13 years usage) were nearly the same as for those with no cellphone.
  • There was no overall increase of any type of tumor risk for long-term cellphone users, compared to those with no cellphones

The authors cautioned that, while they did not find any higher risks of cancer in the study group, that does not rule out the possbility of greater risk in those exposed to cellphone radiation for even longer periods of time.

A Danish study said to be the largest of its kind finds no association between long-term cellphone use and tumors of the brain and central nervous system ....

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Wireless Providers To Provide 'Bill Shock' Warnings

Alison, of Fayetteville, Ark., says she was shocked when she opened her December 2010 AT&T Wireless bill to find it totaled more than $900.

“Upon inspection, it appears I was charged for 14 hours of cellphone service beyond my contractual minutes allotted,” Alison told ConsumerAffairs.com. “This wasn't 14 hours here and there. Allegedly, this was 14 hours of continuous cellphone usage they claimed I had used.”

Many consumers have complained of so-called “bill shock,” receiving their wireless bill and discovering it is substantially more than they expected. Many say it would be nice to get a heads up from their wireless carrier when they are in danger of incurring extra charges. From now on, they will.

An alert

In an agreement between the wireless industry and the Federal Communications Commission (FCC), major wireless carriers will warn customers who are in danger of going over pre-set budget limits.

Some have already adopted this practice. For example, Verizon Wireless sends customers a text message when they have used 50 percent of their minutes or data budgets during a billing cycle. It's then up to the consumer to alter their usage in order to get through the remainder of the cycle without incurring extra charges.

These extra charges can occur when a customer exceeds established plan caps for voice, data or texting. They can also occur when U.S. consumers travel overseas, unaware that their plans don't cover international roaming charges, which are extremely high.

Voluntary agreement

The FCC was on a course toward drafting rules requiring “bill shock” notices when major wireless players offered to work with the agency. The result is not an actual rulemaking process, but rather a voluntary agreement. FCC Chairman Julius Genachowski said the agency would susped the rulemaking pollicy as long as wireless companies implement the alert system.

“This solution will give consumers the information they need to save money on their monthly wireless bills,” Genachowski said. “Consistent with the FCC's ongoing efforts, these actions harness technology to empower consumers, and ensure consumers get a fair shake, not bill shock.”

Under the agreement, wireless providers will:

  • Send voice or text alerts to notify consumers when they approach and when they reach monthly plan limits for voice, data, and text that would result in overage charges.
  • Send alerts when consumers are about to incur international roaming charges that are not covered by their monthly plans; and
  • Clearly disclose any tools that mobile providers offer to let consumers set their own usage limits and monitor their usage balances.

Obama's blessing

Even President Obama got in on the act, issuing a statement giving the agreement his blessing.

“Far too many Americans know what it’s like to open up their cell-phone bill and be shocked by hundreds or even thousands of dollars in unexpected fees and charges," President Obama said in a statement. "So I appreciate the mobile phone companies’ willingness to work with my Administration and join us in our overall and ongoing efforts to protect American consumers by making sure financial transactions are fair, honest and transparent.”

Wireless customers will get a heads up when they approach plan caps...

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Beware The Fake Netflix Android App

Mobile security experts are warning that hackers have created a fake Netflix app for Android smartphones and tablets.

The device passes itself off as the real Netflix Android app but doesn't give you access to Netflix content. Instead, it steals your Netflix log-in information.

Security firm Symantec was among the first to sound the warning, saying existing confusion about Netflix access on the Android platform makes for a ripe situation for hackers. Symantec says Netflix has released the official Android app in bits in pieces, so that users aren't quite sure whether it works on their phones.

Good disguise

The fake app looks very much like the real one, making it even more dangerous. It asks users to log-in to their Netflix account with their user name and password. When they do, they get a message that says their device is not supported by Netflix at this time.

But as they typed in their user name and password, the fake app captured the data and transmitted it to the hacker, who can then sell it. The real app, which was initially released in the early part of the year, was only recently published to the Android Market with support for multiple devices.

Perfect cover

"A gap in availability, combined with the large interest of users attempting to get the popular service running on their Android device, created the perfect cover for Andoid.Fakeneflic to exploit," Symantec said in a blog posting.

Divided into two main parts, the fake app is mainly a splash screen followed by a log-in screen where the user information is captured and posted to a server. Symatec says at last check, it appears that the server where the data was being posted is offline.

Once a user has clicked on the “sign in” button, they are presented with a screen indicating incompatibility with the current hardware and a recommendation to install another version of the app in order to resolve the issue. There is no attempt to automatically download the recommended solution.

Upon hitting the “cancel” button, the app attempts to uninstall itself. Any attempt to prevent the uninstall process results in the user being returned to the previous screen with the incompatibility message.  

A fake Netflix app for Android is causing problems...

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Class Action Disputes Frontier Internet Fees

A federal class action claims Frontier Communications defrauds its Internet customers by illegally collecting taxes and surcharges it falsely claims are governmentally imposed, Courthouse News Service reported.

In the suit, the plantiffs claim that Frontier, which primarily serves customers in rural areas, has charged Internet customers local and state taxes and fees that are prohibited under the Internet Tax Freedom Act, the Federal Communications Act and state law.

The suit says Frontier has also imposed 911 fees on its Internet customers, even though customers are unable to call 911 from the Internet and has charged Internet customers Universal Service Fees, from which Internet service is exempt.

Frontier has also imposed a so-called "HSI surcharge" on its customers, claiming that it is governmentall required or specifically authorized.  In fact, says the suit, the HSI surcharge is neither.

"It is merely a junk fee that Frontier imposes on customers," the suit argues.  "The fee bears no relationship to any governmnetally-imposed fee or regulation, and is nothing other than an effort by Frontier to increase prices above advertising prices."

The named plaintiffs in the suit are Clint Rasschaert, of Minnetrista, Minn., Ed Risch of Farmington, Minn., Verna Schuna, of Scandia, Minn., and Pamela Schiller of Chester, N.Y.

Frontier, headquartered in Stamford, Conn., was formerly known as Citizens Telecommunications Company.  It changed its name in March 2003.  In July 2010, it took over local telephone and Internet service in many rural areas previously served by Verizon and now operates in 27 states, with 7.4 million customers.

The suit seeks refunds and damages for all consumers charged the disputed fees.  It was filed in U.S. District Court in Minneapolis by Nichols Kaster, PLLP.

A federal class action claims Frontier Communications defrauds its Internet customers by illegally collecting taxes and surcharges it falsely claims are go...

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Survey: U.S. Has More Cell Phones Than People

If it seems like everyone on the street is talking into a cell phone, it's because there are a lot of cell phones in use in the U.S.

CTIA – The Wireless Association, a trade group representing wireless providers, is out with its annual survey showing that there are actually more cell phones in use than there are people in the U.S.

The U.S., Puerto Rico, Guam and the U.S. Virgin Islands have a total population of 315.5 million. At last count, CTIA says there are 327.6 million cell phones.

In the last year, subscriber connections have grown nine percent. Wireless network data traffic has doubled and the number of active smartphones and wireless-enabled PDAs has risen from 61.2 million to 95.8 million, a 57 percent increase.

Bad sign for consumers? 

But other growth numbers aren't so good for wireless providers, meaning they may not be so good for consumers in the future.

Starting with the fact that there are now more cell phones than people, doesn't that suggest fewer new customers to be had? True, consumers will trade in their old phones for new ones, but usually on a two-year cycle.

Despite all the growth in the other wireless statistics, the average monthly wireless bill has actually gone down one percent in the last year, dropping from $47.47 to $47.23. There's also virtually no growth in minutes used. Minutes of use rose just one percent to 1.148 trillion minutes.

All this means Verizon, AT&T, Sprint, T-Mobile and other providers may be looking at a maturing market in which just about everyone now has a cell phone. Customers are using about the same number of minutes each month and their bills aren't going up.

Texts are cash cow – for now

True, text messages are a lucrative source of revenue for wireless providers, and the CTIA survey shows consumers sent and received 1.138 trillion text messages in the last year – a 16 percent increase. But new apps that allow consumers to bypass those texting fees are sure to cut into future revenue.

What does all of this have to do with consumers? For wireless companies to achieve consistent growth, which their shareholders expect, there will be pressure to find new sources of revenue, which could come in the form of higher rates to consumers.

Billions for network expansion

To handle the growing voice and data traffic, providers will also have to spend money to improve their networks. From June 2010-June 2011, wireless capital investment increased by 28 percent to $27.5 billion, according to CTIA. Since 2001, wireless companies have reported a cumulative total investment of $223 billion.

It's one thing to spend that kind of money when your market is growing at a double-digit rate, but quite another when the market is reaching a saturation point.

CTIA sees none of these problems on the horizon, however. Steve Largent, CEO of CTIA says demand will increase by 50 percent over the next five years. The big problem, he says, is the need for additional spectrum.

“By making underutilized or unused spectrum available for auction, carriers will continue to invest billions of dollars in their infrastructure, generate hundreds of billions of dollars in benefit to our economy and create up to a half a million new jobs while ensuring the U.S. maintains its position as the world’s wireless leader,” Largent said.

Survey shows there are more cell phones than people in the U.S....

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What's On Your Mind? Verizon, Capital Accounts, Magic Chef, Allied Cash Advance

When Tropical Storm Lee soaked the Mid-Atlantic last month, Pennsylvania was particularly hard hit, with flood waters damaging homes and businesses. Russell, of West Pittston, Pa., said he lost his Verizon telephone and DSL service on September 8 and still hasn't gotten it back.

“Verizon wants to charge us from September 8 through early October even though they know there was no service at my home,” Russell told ConsumerAffairs.com. “The flooding caused by tropical storm Lee in West Pittston caused major damage to Verizon's equipment. A Verizon field worker confirmed it was taken out by the flooding and it was impossible to get service to my address.”

Russell's point is, why should he be billed for service he is not receiving? It's a legitimate question. Surely a big company like Verizon is insured against damage and loss of business income. If they are being compensated, is it fair to charge a customer who received no service? If might be a good question for Pennsylvania Attorney General Linda Kelly

Possible sign of identity theft

Charles, of Levitown, Pa., has been receiving calls lately from Capital Accounts, a bill collector, seeking to collect a debt that Charles insists is not his.

“This agency has posted an account on my credit report and I believe it is not me,” Charles said. “I spoke to one of their agent in charge of my account, explained to him I have been living in Pennsylvania, not New Jersey since January 25, 2007, the date on the bill. I offered to send my driver license and maybe my tax return to prove that I didn't live on the address used.”

First, Charles should act promptly to make sure the bill is not the result of identity theft. He can do that by pulling credit reports from all three credit agencies. He can get them free by going to www.annualcreditreport.com. Once he's assured that it is simply an isolated mistake, he should not try to resolve it through the bill collector, but by disputing it through the credit reporting agencies.

Mind of its own

Joseph, of Oak Park, Calif., has a safety issue with his Magic Chef microwave oven.

“It turns on by itself at random times during the day,” Joseph told ConsumerAffairs.com. “The keypad is unresponsive, the unit beeps to show 3.5g, then it beeps to show cooking for 1:40 min. The first time it happened under warranty and I replaced the whole unit. Now this second unit is doing the same thing, so I keep it turned off for safety.”

Good idea. Our advice to Joseph is to notify Magic Chef, in writing of the problem, and it also send a report to the Consumer Product Safety Commission.

A lesson about payday loans

Lesa, of Silt, Colo., has learned about payday loans the hard way.

“I was in dire need of cash for a medical procedure so I went into Allied Cash Advance and found I qualified for a loan in the amount of $950.00,” Lesa said. “ The loan was very fast and easy to obtain. The person that helped me was pleasant enough, but very hurriedly went through all the terms and interest rates and charges. I should have listened more closely and read the fine print front to back! I am paying a fee of $135.00 every month and $12.00 in interest every month and that's not even paying on my loan! I can't believe I was so naive. Never again, Lesson learned!”

Lesa said she has paid $200 a month for six months and still owes $850.

Here is what's on consumer's minds today: Verizon, Capital Accounts, Magic Chef, Allied Cash Advance, Possible sign of identity theft, Mind of its own and ...

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Class Action RICO Complaint Seeks to Swat Flycell

A RICO class action accuses Sony Entertainment and ringtone provider Flycell of cramming unasked-for "services" onto cell phone bills.

The lead plaintiff, an Air Force pilot, says the facts show "the depth to which some of the most powerful combatants will go in order to steal billions of dollars from unwitting and relatively helpless consumers," Courthouse News Service reported.

Mark Smith, of South Carolina, says he learned of the charges when he went to an AT&T store to complain about dropped calls, poor reception and high charges.

As he and an AT&T employee pored over Smith's 68-page bill, they found charges totalling $19.99 from Flycell.

"Further investigation of prior billings disclosed that AT&T had billed on behalf of Flycell charges of $19.99 every month for over a year" even though Smith inisists he had never heard of Flycell and had not knowingly purchased any Flycell products.

"Media content"

"At no time did plaintiff agree to pay for media content from Flycell," Smith says in the suit.

And just what is this Flycell?

It describes itself as "an online hub for customers to download cell phone ringtones, graphics, games, entertainment, and sports programs." It is a wholly owned subsidiary of New York-based company Acotel, which is also named as a defendant in Smith's suit, which was filed in U.S. District Court in Manhattan.

Smith said it took him two solid months of complaining to get the charges reversed.  He seeks an injunction against further cramming and treble damages for fraud, RICO conspiracy and unjust enrichment.

Smith is hardly alone. ConsumerAffairs.com has been publishing consumers' complaints about Flycell since at least 2006, most of them remarkably similar to Smith's.

"This company randomly solicited their ring tone services to me, which I declined. I then responded STOP as instructed to deny services and charges, but they have been charging me anyway," said Lauric of El Segundo, Calif., in a recent complaint. "This company scams money from people and provides no contact information to cancel and/or question these fraudulent charges. Something needs to be done. I have been receiving $10 a month in fraudulent charges on my cell phone bill."

The Federal Communications Commission defines cramming as "the practice of placing unauthorized, misleading, or deceptive charges on your telephone bill," according to the complaint.

AT&T is not a defendant in Smith's suit.

A RICO class action accuses Sony Entertainment and ringtone provider Flycell of cramming unasked-for "services" onto cell phone bills. The lead plaintiff,...

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Cheaper Ways To Text Are Coming

Sending text messages is old-fashioned, expensive and very, very popular. Those three ingredients are combining to produce cheaper – even free – ways to do it.

On Wednesday Apple plans to roll out iMessage, a cross between texting and instant messaging. There are several other apps that provide much the same service. TextPlus, for example, has offered a texting app since early 2010.

Texting uses a small sliver of a cell phone network's voice channel to transmit small amounts of data. It costs the cell phone provider almost nothing to transmit the data. Youthful cell phone users were quick to adopt the form of communication, spelling out words using a different function of their handset's keypad.

Still prefer texting

Despite the explosion in smartphones, which allow users to also send and receive email – which is included in their data plan – younger smartphone users still prefer to send and receive texts over email, even though they come in at exactly the same place email does on their devices.

One reason, perhaps, is not everyone has a smartphone. If someone with a smartphone wants to send a message to a friend with a regular voice-only device, they have to send a text.

And text messages are expensive. Carriers usually charge 10 to 20 cents to send a text and the same amount to receive one. Just an average text conversation can be costly, unless you have an unlimited text plan on your account. Even then, you pay a flat monthly fee for the privilege of sending and receiving the same data you could be sending and receiving for free with email.

How text apps work

Text apps will allow users with a data plan to send and receive text messages using their cell provider's data network instead of its voice network. For all practical purposes, they are emails – they'll just pop up as though they are text messages.

If these apps catch on – and there's no reason to believe they won't – what will that mean for cell phone companies that make huge mark-ups on providing text services? It will likely put a sizable dent in their profits.

It could result in cell phone companies finding themselves in exactly the same position as banks did recently, when legislation and rule changes eliminated a lot of the fee income that contributed to their profits.

To make up for it, banks are now instituting new fees rather than settle for lower profits. Consumers can expect cell phone companies to respond in similar ways.

New apps mean it will cost little or nothing to send and receive texts...

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Looking for AT&T Supporters? Just Follow the Money

When you see an aging celebrity hawking an osteoporosis medication on TV, you don't believe that person actually uses the product or knows anything about it, now do you?

Of course you don't, and you should bring the same skepticism to statements made by politicians on behalf of big corporations and special-interest groups.

Which brings us to the subject of AT&T; and its attempt to portray its proposed takeover of T-Mobile as pro-competitive.  Maybe it is, but don't take anybody's word for it.

Case in point: on Sept. 16, the attorneys general of seven states joined the U.S. Justice Department suit to block the merger.  Just a few weeks earlier, ten other state attorneys general had backed the merger, and they followed up on Sept. 21 by encouraging the Federal Communications Commission (FCC) and Justice Department to speed the merger on its way. 

Follow the money

Attorneys general are the chief law enforcement officers for their states, so how could they disagree so completely?  Good question. As always in politics, the answer can be found by following the money.

The AT&T-friendly; AGs represent Alabama, Arkansas, Georgia, Kentucky, Michigan, North Dakota, South Dakota, Utah, West Virginia and Wyoming, and the AGs from Michigan and South Dakota are the only ones in the group who have not benefited from AT&T;’s largesse, the consumer group Free Press reports.

The other eight have collectively received $28,490 in AT&T; contributions, according to data gathered by Follow the Money, a campaign-finance database created by the nonpartisan National Institute on Money in State Politics.

This places them in the company of pretty much everyone who has voiced support for the merger.

In the first half of 2011, AT&T; lobbying spending jumped by 30 percent, to $11.7 million.  Much of that pile of cash went to Congressmen, including 15 who signed a letter to President Obama urging him to support the merger, Free Press said.

The Congressmen signing those letters received more than $570,000 in campaign contributions from AT&T.;

And last Tuesday, 100 House Republicans signed a similar letter to Obama; all but one of these lawmakers have received donations from AT&T; employees, for a whopping total of $963,275, Free Press added.

Business as usual

Think this is a yawner?  Just business as usual?  Well, maybe so.  After all, the U.S. telecommunications business has always been heavily regulated and you could argue that the companies that have been around forever are better at lobbying lawmakers and drumming up "grassroots support" than they are at building cell towers or making sure calls don't get dropped.

Back in the days when state utility commissioners still wielded a lot of power over telephone companies, the process resembled an old-style Tammany Hall as telcos and their hired guns ran around town passing out money to charities, "civic organizations," churches, schools and just about anyone else who would agree to come to a PUC hearing and testify in favor of whatever the phone company was after.

Then along came "deregulation," which really amounted to a federal power grab.  The state PUCs lost their ability to nickel-and-dime the phone companies and a lot of local-level influence peddlers found their free lunch had evaporated.

But log-rolling hadn't gone away.  It had just moved to Washington.  Congress, after all, is better able to absorb large sums of money than any pipsqueak local agency and has no qualms about doing so. 

Now and then, the telcos will return to the places of their births to spread a little change around but the action these days is all on Capitol Hill, as this tawdry little episode reminds us. 

Less than a week after seven attorneys general joined the Justice Department suit to block the AT&T/T-Mobile merger, 10 other attorneys gen...

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Feds Ban Spammer Who Sent 'Mind-Boggling' Number of Messages

An enterprising individual who allegedly sent millions of illegal spam text messages to consumers is banned from sending any unsolicited text messages, under a settlement agreement with the Federal Trade Commission entered by a federal court.

According to the FTC complaint filed in February 2011, the marketer sent a “mind-boggling” number of unsolicited commercial text messages pitching mortgage modification services to consumers, and misrepresented that he was affiliated with a government agency.

The FTC alleged that many consumers had to pay fees to their mobile carriers to receive the unsolicited text messages. The FTC also alleged that the marketer advertised his text message blasting services by sending consumers illegal spam. The agency charged him with violating the FTC Act and the CAN-SPAM Act. 

The complaint states that the text messages instructed consumers to respond to the messages or visit various websites advertised in the messages.

One of the websites, loanmod-gov.net, claimed to provide “Official Home Loan Modification and Audit Assistance Information,” and displayed a photo of an American flag.

The agency alleged that the defendant collected information from consumers who responded to the text messages – even those who responded by asking to be removed from his list – and sold it to third parties, claiming the consumers were “debt settlement leads.”

The settlement bans the defendant, Phil Flora, from sending or helping others send unsolicited commercial text messages, and bars him from making false or misleading claims about any good or service, including misrepresentations that he, his representatives, or any other person is affiliated or associated with a government agency. The order also bars him from violating the CAN-SPAM Act.

The settlement order imposes a judgment of $58,946.90. 

An enterprising individual who allegedly sent millions of illegal spam text messages to consumers is banned from sending any unsolicited text messages, und...

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What's On Your Mind? AT&T, Hertz, Lenovo, Chase

With all the emphasis on mobile phones, it's easy to forget about old fashioned landlines. Many people depend on their residential telephone- not a wireless device – for vital communication, and they miss it when it isn't there.

“I have been complaining to AT&T for two months that my landline does not work,” Mary, of Canterbury, Conn., told ConsumerAffairs.com. “We checked the inside wiring and the problem is outside. No dial, static on phone. Cannot receive calls and make outgoing calls. I am being billed for phone calls. I have not had service for two months--how could I make these calls? The customer service reps are very rude. There is approximately $86.00 not I do not owe. I am billed for phone service I do not have.”

Two months is too long to wait for a repair, so something is obviously not right about this. In fact, Connecticut's utility regulators earlier this year leveled a $745,000 civil fine against AT&T, claiming the communications giant failed to meet a quality service standard when it comes to repairs. The standard requires the company to make repairs to at least 90 percent of out-of-service problems reported within a 24-hour period. In too many cases, say state officials, consumers were left without phone service for much longer periods. Mary could start by filing a complaint with the Connecticut Public Utilities Department

Keep your paperwork

Consumers report being nickeled and dimed – actually a lot more than nickels and dimes – by nearly all the rental car agencies. Especially troubling are extra changes for refueling when the consumer has taken pains to return the car full of gas.

“Before returning my rental vehicle I refueled at the nearest gas station to ensure it had a full fuel tank,” said Samuel, of Las Vegas, Nev. “The serviceman verified the tank to be full upon return to Hertz Rent A Car in Denver on August 29. I was checking my credit card account on September 17 and I found an unauthorized charge from Hertz for the amount of $95.69 charged on September 13. On September 19, I received a letter from Hertz stating when the car was serviced 10.3 gallons of fuel were needed to fill up the tank.”

Samuel said a Hertz attendant verified a full tank. Surely that is noted somewhere in the paperwork. If Samuel still has his paperwork, he should be able to straighten this out. The lesson is to hold on to your rental receipts for several months.

Check the calendar

Patricia, of Cumming, Ga., experienced a system crash on her Lenovo laptop on September 20. It was made all the worse because she lost work she had just completed and would be out of action the following day because of jury duty.

“I spent last night recreating the work that I had just lost on it, so when I went to jury duty this morning I wouldn't be thinking about recreating the work that was due,” Patricia told ConsumerAffairs.com. “After returning from Jury Duty I called Lenovo customer service. Turns out my warranty expired yesterday. They said there wasn't anything they could do for me. Since I didn't call last night before midnight I was just out of luck.”

Patricia is angry at Lenovo, but in fairness to the company, the warranty was up, even if she only missed it by hours. The company might have made a friend for life if they had honored it anyway, but chances are no one at the level she was dealing with could make that call.

Another nightmare

Over the past three years we have read about all kinds of problems homeowners have experienced while going through the modification process. Often it includes a lack of communication with the loan servicer. Nancy, of Napimo, Calif., says she thought she had things worked out with Chase when she started making mortgage payments in July. But the bank wouldn't accept her payments.

“Every month I would spend hours on the phone with them with no explanation and disputing the fact any payments were being made,” Nancy said. “I finally went to the bank in person to make a payment and they also rejected payment, telling me my house sold in March 2011.”

While that news was shocking, Nancy said the confusion continued because she has now received a notice of foreclosure. Shouldn't she have received that before her house was sold? Nancy should speak to someone in California Attorney General Kamala Harris' office.  

Here is what's on consumer's minds today: AT&T, Hertz, Lenovo, Chase, Keep your paperwork, Check the calendar and Another nightmare....

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Seven States Sue to Block AT&T's T-Mobile Takedown

Seven states today joined the federal government in its effort to block AT&T Inc.’s proposed acquisition of T-Mobile USA Inc., saying the $39 billion deal would "substantially lessen competition."

The U.S. Department of Justice filed its civil antitrust lawsuit on August 31, seeking to enjoin the acquisition.  It amended the complaint today to add the seven states -- New York, California, Illinois, Ohio, Pennsylvania, Massachusetts and Washington -- as plaintiffs.

“Blocking this acquisition protects consumers and businesses against fewer choices, higher prices, less innovation, and lower quality service,” said Illinois Attorney General Lisa Madigan.

AT&T’s acquisition of T-Mobile would reduce the number of national competitors to three and eliminate a company whose low pricing and product innovation have made it an aggressive competitor in the mobile wireless telecommunications marketplace, the states said.

“We applaud the attorneys general who joined the Justice Department's suit today to block AT&T’s takeover of T-Mobile. They deserve praise for standing up to AT&T and standing with their citizens," said Craig Aaron, president of Free Press, a D.C. public interest group.

"They understand that families can’t afford to shoulder the burden of higher bills that would result from the merger, and that states struggling with unemployment can’t afford to stand aside while corporations kill competition and put people out of work. This lawsuit is yet another blow to AT&T and a victory for the public," Aaron said.

Four competitors

Four nationwide providers – AT&T, T-Mobile, Sprint and Verizon – account for more than 90 percent of mobile wireless connections. According to the complaint, AT&T and T-Mobile compete head to head nationwide. They also compete nationwide to attract business and government customers.

In addition, wireless customers across the country face similar choices from the four national competitors regardless of whether local or regional carriers also compete in any particular local area.

The complaint also describes the competitive limitations of regional providers, resulting from their lack of national networks. Similarly, it concludes that entry by a new provider would be difficult, time-consuming, and expensive, requiring among other things nationwide spectrum, the construction of a nationwide network, scale economies arising from having tens of millions of customers, and a strong brand.

AT&T’s efforts to increase its own already substantial scale economies through this transaction underscore the difficulties any new entrant would have in entering in a timely manner and with sufficient scale to thwart the competitive harm resulting from the proposed acquisition, the suit argues.

The complaint also concludes that the defendants have not been able to demonstrate merger-specific benefits that would sufficiently outweigh the proposed merger’s anticompetitive effects.

Seven states today joined the federal government in its effort to block AT&T Inc.’s proposed acquisition of T-Mobile USA Inc., saying the $39 bil...

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New Invention Could Prolong Smartphone Battery Life

One of the many considerations consumers make when selecting a smartphone is its battery life. But a new invention just might level the playing field, making that less of a consideration.

University of Michigan computer science and engineering professor Kang Shin and doctoral student Xinyu Zhang have invented what they call a "subconscious mode" for smartphones and other WiFi-enabled mobile devices could extend battery life by as much as 54 percent for users on the busiest networks.

Still being tested

The researchers will present their invention at the ACM International Conference on Mobile Computing and Networking next week in Las Vegas. The approach is still in the proof-of-concept stage and is not yet commercially available.

Even when smartphones are in power-saving modes and not actively sending or receiving messages, they are still on alert for incoming information and they're searching for a clear communication channel. The researchers have found that this kind of energy-taxing "idle listening" is occurring during a large portion of the time phones spend in power-saving mode -- as much as 80 percent on busy networks.

More efficient listening

The researchers say they have simply tried to make smartphones perform this idle listening more efficiently. It's called E-MiLi, which stands for Energy-Minimizing Idle Listening.

To find out how much time phones spend keeping one ear open, Shin and Zhang conducted an extensive trace-based analysis of real WiFi networks. They discovered that, depending on the amount of traffic in the network, devices in power-saving modes spend 60 to 80 percent of their time in idle listening. In previous work, they demonstrated that phones in idle listening mode expend roughly the same amount of power as they do when they're fully awake.

"My phone isn't sending or receiving anything right now," Shin said, lifting his power-skinned iPhone, "but it's listening to see if data is coming in so I can receive it right away. This idle listening often consumes as much power as actively sending and receiving messages all day."

How it works

Here's how E-MiLi works: It slows down the WiFi card's clock by up to 1/16 its normal frequency, but jolts it back to full speed when the phone notices information coming in. While it's fairly easy to slow a device's clock to save energy, the hard part, Shin said, is getting the phone to recognize an incoming message while it is in this slower mode.

"We came up with a clever idea," Shin said. "Usually, messages come with a header, and we thought the phone could be enabled to detect this, as you can recognize that someone is calling your name even if you're 90 percent asleep."

44 percent power reduction

When used with power-saving mode, the researchers found that E-MiLi is capable of reducing energy consumption by around 44 percent for 92 percent of mobile devices in real-world wireless networks.

Widespread changes in the industry would be required to make all of this a reality. In addition to new processor-slowing software on smartphones, E-MiLi requires new firmware for phones and computers that would be sending messages.

They need the ability to encode the message header -- the recipient's address -- in a new and more detectable way. The researchers say they have created such firmware, but in order for E-MiLi use to become widespread, WiFi chipset manufacturers would have to adopt these firmware modifications and then companies that make smartphones and computers would have to incorporate the new chips into their products.

Researchers say they know how to make smartphone batteries last longer...

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AT&T Responds To Justice Department Lawsuit

Lawyers for AT&T have filed their response to the U.S. Justice Department's antitrust suit that seeks to block the wireless carrier's acquisition of rival T-Mobile.

The document contends the government has failed to make its case that allowing AT&T and T-Mobile to merge will create a wireless monopoly that will harm consumers.

“The Complaint largely ignores the significant competition from established providers such as Verizon Wireless and Sprint, innovative upstarts such as MetroPCS and Leap/Cricket, and strong regional providers like US Cellular and Cellular South, among others,” the lawyers write. “The Department does not and cannot explain how, in the face of all of these aggressive rivals, the combined AT&T/T-Mobile will have any ability or incentive to restrict output, raise prices, or slow innovation. Now can it explain how T-Mobile, the only major carrier to have actually lost subscribers in a robustly growing market, provides a unique competitive constraint on AT&T.”

Takes issue with government conclusion

The Justice Department suit noted that the proposed merger would create, by far, the U.S.'s largest wireless company, giving it and second largest Verizon dominance over the marketplace. As a result, the suit contends, service is likely to get more expensive for consumers. AT&T argues just the opposite.

“Blocking this transaction will not help T-Mobile or its customers, but the transfer of T-Mobile’s network capacity and infrastructure to AT&T, a healthy competitor, will enhance competition for all, now and in the future,” the document says.

AT&T argues that any anticompetitive effects of the merger are more than outweighed by significant efficiencies. AT&T further responds that the burden of proof is on the government that “the net effect of the transaction is to substantially lessen competition.”

There's a lot riding on the outcome. If AT&T loses it will not only lose the market share, bandwidth and customer accounts the T-Mobile deal would bring, it will also have to pay T-Mobile owner Deutsche Telekom a $3 billion fee and surrender some spectrum space to T-Mobile.  

AT&T has responded to the government's antitrust suit against it...

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AT&T, Sprint Battle May Go Into Extra Innings

AT&T's battle to take over T-Mobile has moved across town, from the the U.S. District Court to Capitol Hill, where Sprint -- the carrier that has the most to lose -- is launching an advertising and lobbying campaign to preserve its unexpected late-game advantage over powerhouse AT&T.

Sprint threw the first pitch yesterday, with a lawsuit challenging the merger and echoing the Justice Department's arguments. It followed up today with full-page ads in The Washington Post and other inside-the-Beltway publications, reminding lawmakers that if the AT&T/T-Mobile merger is approved, AT&T and Verizon will control 77.6% of the wireless market in the United States. 

Easy-to-read icons compare that to the market share of the two leaders in other industries -- 18% in oil, 36.3% in airlines, 27.5% in banking, and so on.

AT&T is far from conceding, however.  Its general counsel, Wayne Watts, has been telling reporters the company will "vigorously contest" the Justice Department's suit.

A surprise

Last month's Justice Department lawsuit to block the $39 billion deal came as a surprise to nearly everyone.  AT&T, which has already absorbed most of the independent Bell companies created by the historic 1982 AT&T break-up, has accumulated more experience in the care, feeding and lobbying of regulators and legislators than the rest of the telecommunications industry combined.

AT&T boosted its spending on lobbyists by 30% to $11.7 million in the first six months of the year, Bloomberg News reported, but lobbyists aren't much help in the courtroom. Its PAC gave $805,000 to federal candidates, more than any other company, according to the Center for Responsive Politics.

Lobbyists are plenty helpful on the Hill though, and Congress is back in town so AT&T and Sprint may have to go into extra innings.

Lots at stake

There's a lot riding on the outcome.  If AT&T loses -- which seems almost impossible to those who've been around the track a few times -- it will not only lose the market share, bandwidth and customer accounts the T-Mobile deal would bring, it will also have to pay T-Mobile owner Deutsche Telekom a $3 billion fee and surrender some spectrum space to T-Mobile.

Consumers have a lot at stake as well, although none of the options are exactly overwhelmingly favorable:

  • a combined AT&T/T-Mobile might improve service in rural areas, but then again it might not;
  • Sprint would be severely weakened by an AT&T/T-Mobile lash-up which is most likely bad news for its customers;
  • rejecting the merger preserves the status quo, which is hardly ideal.

Might it be better if Sprint bought T-Mobile? you ask.  Maybe, but it might also be better if the sun rose in the West tomorrow. The question is so hypothetical it's almost not worth discussing.  

For now, consumers are probably best advised to react with extreme skepticism to anything anyone says.  About anything. 

AT&T's battle to take over T-Mobile has moved across town, from the the U.S. District Court to Capitol Hill, where Sprint -- the carrier that has the m...

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Sprint Sues To Block AT&T/T-Mobile Deal

The competitor with perhaps the most at stake in a merger of AT&T and T-Mobile has gone to court to try and stop the deal in its tracks.

Sprint/Nextel has filed suit in U.S. District Court in the District of Columbia in a bid to stop the proposed $39 billion acquisition from taking place. It joins the U.S. Justice Department, which filed a similar suit, in arguing the proposed union of the nation's second and third largest mobile companies is anti-competitive.

Sprint/Nextel, which would become the third-largest mobile company behind AT&T and Verizon Wireless -- and with a much smaller piece of the pie proportionally -- said the deal would take the industry back to the 1980s, when just two firms dominated the industry, and consumers paid high prices.

"By acquiring T-Mobile, AT&T would be removing a low-price and innovative maverick competitor that provides particularly disruptive competition," Sprint argued in the suit. "The injuries to Sprint and the public at large would be irreparable if the merger were completed."

Echoing the government

Sprint made many of the same arguments against the deal as voiced by the government in last week's suit. In its suit, the government pointed out that mobile wireless telecommunications services play a critical role in the way Americans live and work, with more than 300 million feature phones, smart phones, data cards, tablets and other mobile wireless devices in service today.

Four nationwide providers of these services – AT&T, T-Mobile, Sprint and Verizon – account for more than 90 percent of mobile wireless connections. The proposed acquisition would combine two of those four, eliminating from the market T-Mobile, a firm that historically has been a value provider, offering particularly aggressive pricing, DOJ said.

“T-Mobile has been an important source of competition among the national carriers, including through innovation and quality enhancements such as the roll-out of the first nationwide high-speed data network,” said Sharis A. Pozen, Acting Assistant Attorney General in charge of the Department of Justice’s Antitrust Division.“Unless this merger is blocked, competition and innovation will be reduced, and consumers will suffer.”

The department said that it gave serious consideration to the efficiencies that the merging parties claim would result from the transaction but concluded AT&T had not demonstrated that the proposed transaction promised any efficiencies that would be sufficient to outweigh the transaction’s substantial adverse impact on competition and consumers.

AT&T has argued that the merger would actually benefit consumers, saying it would allow the combined companies to more quickly expand wireless broadband services across the U.S.

Sprint sues to block the AT&T acquisition of T-Mobile...

Florida Man Ran Cramming Scheme From His Jail Cell

Crime does pay, but the payout sometimes carries a hefty price tag, as Willoughby Farr, 46, of West Palm Beach, Fla., has learned.

Farr has been sentenced to 262 months – roughly 21 years – in prison and three years of supervised release for perpetrating a “cramming scheme,” which was designed to place charges on consumers’ telephone bills for collect calls that were not made. 

According to court documents, from April 2003 to December 2005, Farr used three West Palm Beach companies – Nationwide Connections Inc., Access One Communications Inc., and Connect One Communications Inc. – to defraud consumers.  

Through these companies, Farr arranged for telephone companies to falsely bill consumers for approximately $35 million in collect calls.   Because the charges typically appeared on the last page of consumers’ telephone bills, many did not notice and paid the charges without complaint.

Farr pleaded guilty in May 2010 to two counts of mail fraud related to the scheme.   In pleading guilty, Farr admitted that he committed the crimes while he was incarcerated in the West Palm Beach County Jail.  

Hid his ownership

Investigators said Farr hid his ownership of the three firms from jail officials.   He also hid his ownership because other firms had cut off his ability to bill for calls due to consumer complaints and the fact that state regulators had sued him for illegitimate billing.  

“When the unscrupulous and the dishonest line their pockets with consumers’ hard-earned money, we will hold them accountable,” said Tony West, Assistant Attorney General for the Civil Division of the Department of Justice.   “As this sentence demonstrates, the Justice Department has put a priority on protecting the public from fraudulent schemes.   This case should also remind consumers to carefully review their telephone bills for unauthorized charges.”

In February 2006, the Federal Trade Commission (FTC) brought a cramming suit against several firms and individuals, including Farr. That suit resulted in a $34,547,140 civil judgment against Farr.

“The Postal Inspection Service did a superb job investigating this case,” said Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida. “The FTC first uncovered this scheme and brought it to the Justice Department’s attention.   The case demonstrates the effectiveness of cooperative law enforcement efforts which can put an end to fraudulent schemes, and then bring wrongdoers to justice.”

“Crammers like Farr are eager to post bogus charges to consumers’ accounts,” said Inspector in Charge Henry Gutierrez.   “The Postal Inspection Service will work tirelessly with its law enforcement partners to deter fraudulent use of the mails and to protect the American consumer.”                   

Crime does pay, but the payout sometimes carries a hefty price tag, as Willoughby Farr, 46, of West Palm Beach, Fla., has learned.Farr has been sentenced...

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What's On Your Mind? T-Mobile, Citibank, Dish Network

Jennifer, of Pueblo, Colo., says T-Mobile gave her some bad information that resulted in her entering into a contract she didn't want. And it all revolves around the proposed AT&T merger with T-Mobile that now looks to be in doubt.

As Jennifer explains it, she had been a T-Mobile customer for seven years with three lines, none of which were under a contract. She said she called T-Mobile to have the third line removed.

“The young lady in the retention department told me that when AT&T takes over T-Mobile in two months, anyone without a contract would be shut off and would have to look for new service, and the package I have is no longer available, so I would have to agree to a new minutes package if i wanted to stay with T-Mobile and not have to search for a new phone company,” Jennifer told ConsumerAffairs.com.

With it put to her in those terms, Jennifer said she felt she had no alternative but to agree to a new contract. Then came last week's anti-trust suit by the Justice Department to block the merger.

“Now knowing the merger is not going through, I just got off the phone with T-Mobile who is now unwilling to help and reset my plan and contract even though it was given under completely false information,” Jennifer said. “On top of that, they are unwilling to pull the call and listen to what i was told, and the fact that i told the retention department several times that i didn't want to have to be wrapped into a new contract.”

It's not too surprising that T-Mobile is unwilling to undo Jennifer's contract. However, it's interesting that she was told, in effect, that she would have fewer options after the merger. Seems to make the case of the critics who maintain the merger is a bad deal for consumers.

Check's not in the mail

Here's a tip for Citibank rewards card customers: if you want to redeem your points in the form of a check, Margaret, of Thousand Oaks, Calif., tells us you could be looking at a lengthy delay.

“Today I made three attempts to speak to someone and was disconnected each time,” Margaret said. “I called back pretending to want to redeem points and reached some one who told me the third party they have cutting the checks is having a problem. She couldn't tell me what the problem was however, she did say it would take five to six weeks to receive the check even though program says it takes up to three weeks.”

But Margaret says it you redeem your points in a pre-paid card, it only takes about a week.

Bad reception

Satellite TV is supposed to be comparable to cable, at least as far as reception is concerned. But Ronald, of Lexington, N.C., noticed a difference when he switched from Time Warner to Dish Network about seven months ago.

“Everytime it rains my TV goes out and the screen says lost signal,” Ronald told ConsumerAffairs.com. “I have been calling Dish Network for as long as I have had it. At first they would tell me that my signal was fine, then they told me to call the installer that put the system in for them and I did not know how to get in touch with him and I should not have to it should be up to dish network to get the installer back out here.”

It does, indeed, sound like an installation problem. If the dish is not properly aligned with the satellite, the slightest atmospheric disturbance will cause interference. Ronald should still have the paperwork from his installation, with the installers name and address.

Here is what's on consumer's minds today: T-Mobile, Citibank, Dish Network, Check's not in the mail, Bad reception and bad information....

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Consumers Leading Opposition To AT&T T-Mobile Merger

A lot of organizations endorsed AT&T's proposal to acquire and merge with rival T-Mobile. Even a group of 10 state attorneys general backed the deal.

But consumers, the people who actually use cell phones and pay the bills, have never been all that enthusiastic. In fact, you might say some have been absolutely hostile to the deal.

When the U.S. Justice Department filed an anti-trust lawsuit to block the merger, you could almost hear some ConsumerAffairs.com readers cheering. Readers like Jack, who describes himself as a company president from Miami, Fla., who depends on his Blackberry on business trips, wrote to ConsumerAffairs.com in July, complaining about billing problems with T-Mobile.

Cartel

“To leave T-Mobile and go to another company, unfortunately there is no alternative with the Blackberry emails overseas - only AT&T,” Jack told ConsumerAffairs.com. “But T-Mobile is going to merge with AT&T soon, it will create a cartel on the Blackberry emails overseas. I hope very much as a citizen of the USA that FCC will not approve the merger between T-Mobile and AT&T.”

Dustin, of Iowa City, Iowa, wrote in March about his regret at leaving T-Mobile for AT&T, unaware that the two companies were about to announce a merger.

“I have to dial a number five or more times regularly to get the call to go through,” Dustin said. “This is ridiculous, with the price of AT&T being one of the highest in the market, I expected better! I should have just grabbed a tablet from T-Mobile so I could Facetime my family while I'm on the road. Overall I am very displeased it is almost like I don't have a phone at all the way it lacks reception.”

'Less competition not the American way'

Other consumers have posted comments on our stories about the proposed merger. Commenting on our story about growing criticism of the deal, one poster named Dave said “Ask the T-Mobile users. We all know what saved AT&T. Apple did! That's how come they can throw all that money around. Less competition is not the American way.”

“This could raise cell phone rates for everyone, not just T-Mobile users,” another poster, Daniel, said. “Less compition means higher prices, its basic economics. Let's band together and stop this, everyone speak out.”

Another poster, Craig, chimed in with “AT&T + T-Mobile = better reception? Oh, that's a good one.”

A ConsumerAffairs.com analysis of about 1.5 million consumer postings on social media sites found consumer sentiment about AT&T roughly evenly divided.  In March, when the proposed merger was announced, consumers made about 10,000 negative comments about AT&T and about 11,000 positive ones.

Chart shows positive sentiment (above) vs. negative (below)

Perhaps more telling are the sentiments expressed by about 2.3 million consumers about T-Mobile during the same period of time.  During March, about 20,000 consumers expressed positive sentiments about T-Mobile, compared to 7,800 negatives, as shown in the chart below.

Real reason?

In our story quoting Free Press President Craig Aaron saying "We now know the truth: AT&T is willing to pay a $39 billion premium for one reason and one reason only — to kill off the competition," he got a big “amen” from Lisa, a reader in Utah.

“This bottom lines the real reason for the acquisition,” she said.

The Justice Department challenge was not unexpected, but it came a lot earlier in the process than many people expected. In the Wall Street Journal's "Heard On The Street," the business Bible noted that powerful political forces were lining up in favor of the deal. It called the government anti-trust suit a demonstration that “legal issues carried the day.”

Just because the government has challenged the merger in court, that doesn't mean it is dead. AT&T is expected to vigorously counter the suit.

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Sentiment analysis powered by NetBase

Consumers have gone on record in opposition to the merger of AT&T and T-Mobile...

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Feds Sue To Block AT&T Acquisition Of T-Mobile

The U.S. Justice Department (DOJ) has filed a lawsuit in federal court to stop AT&T from taking over rival T-Mobile. The government said the proposed $39 billion transaction would substantially decrease competition in the U.S. mobile industry.

Should the merger be completed, AT&T would be, by far, the largest U.S. wireless company with Verizon Wireless second. Sprint/Nextel would be a distant third. The suit, filed in U.S. District Court for the District of Columbia, signaled the government's determination to prevent that large of a consolidation in the wireless industry.

“The combination of AT&T and T-Mobile would result in tens of millions of consumers all across the United States facing higher prices, fewer choices and lower quality products for mobile wireless services,” said Deputy Attorney General James M. Cole. “Consumers across the country, including those in rural areas and those with lower incomes, benefit from competition among the nation’s wireless carriers, particularly the four remaining national carriers. This lawsuit seeks to ensure that everyone can continue to receive the benefits of that competition.”

Consumer activists had urged DOJ and the Federal Communications Commission (FCC) to intervene, to prevent the sale from taking place. In late July, Sen. Al Franken (D-MN) went on record against the deal, in a filing with regulatory agencies.

'Not in the public interest'

"This transaction is not in the public interest," Franken said in his filing. "If approved, it would result in greatly reduced competition, the potential loss of thousands of jobs, higher consumer prices, and less innovation in technology. I urge the FCC and the DOJ to deny AT&T's application for approval of its acquisition of T-Mobile."

Franken's opposition to the proposed deal was not exactly a secret. He initially raised concerns about this merger during a statement on the Senate floor on May 4. Franken also questioned the impact of the merger on consumers at a Judiciary Committee hearing in May.

If DOJ needed further prodding to take its position, it may have come in early August when AT&T released a number of documents in its filing with the FCC.

Communications Daily, which was first to publish the documents, reported that in the filing, AT&T admitted that expanding its most advanced network to 97 percent of the country would cost only an estimated $3.8 billion. But the filing shows AT&T rejected that option, claiming there wasn’t a “viable business case” to justify the expansion.

Wireless' critical role

In its suit, the government pointed out that mobile wireless telecommunications services play a critical role in the way Americans live and work, with more than 300 million feature phones, smart phones, data cards, tablets and other mobile wireless devices in service today. Four nationwide providers of these services – AT&T, T-Mobile, Sprint and Verizon – account for more than 90 percent of mobile wireless connections. The proposed acquisition would combine two of those four, eliminating from the market T-Mobile, a firm that historically has been a value provider, offering particularly aggressive pricing, DOJ said.

“T-Mobile has been an important source of competition among the national carriers, including through innovation and quality enhancements such as the roll-out of the first nationwide high-speed data network,” said Sharis A. Pozen, Acting Assistant Attorney General in charge of the Department of Justice’s Antitrust Division.“Unless this merger is blocked, competition and innovation will be reduced, and consumers will suffer.”  

The department said that it gave serious consideration to the efficiencies that the merging parties claim would result from the transaction but concluded AT&T had not demonstrated that the proposed transaction promised any efficiencies that would be sufficient to outweigh the transaction’s substantial adverse impact on competition and consumers. 

The U.S. Justice Department is attempted to block AT&T's merger with T-Mobile...

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The Droid Bionic Is Coming ... Or Not

Even before Google bought Motorola Mobility, there was a lot of excitement and buzz around the Droid Bionic, Motorola's latest attempt to get back into the smartphone race.

The release date of the much-anticipated phone has been a question mark, so interest peaked today with a Tweet from "@DroidBionic," saying the device would be released Sept. 8.

But hold on a second.  Although the Tweet claims to be the "official Motorola Droid Bionic Twitter page," it's no such thing, both Motorola and Verizon Wireless hastened to assure a Droid-starved public today.

So who is  "@DroidBionic"?  Things being what they are, it could be just about anybody.  Whoever it is can't spell or talk English good, which is what initially tipped off PCMag.com's Sascha Segan, who was -- as far as we can tell anyway -- the first byte-stained wretch to note the discrepancies.

Numerous other publications, including the usually reliable Dealerscope, fell for the phony Tweet. 

As for Verizon Wireless, its Web site is still saying the Bionic will be available in September but it's not being any more specific.  

Why the buzz?

Why is everyone getting so worked up over yet another smartphone?  Well, the Droid, we'll have you know, is the first dual-core 4G LTE smartphone, which should mean it will be the fastest and the most capable of doing somewhat amazing things.

Pre-Bionic, there hasn't been a smartphone that's both dual-processor and capable of running on Verizon's lightning-fast 4G network.  Put those two together and the result should be pretty awesome in terms of speed and page-loading (which are sort of the same thing but also sort of not).

Besides that, the Droid Bionic's 960-by-540 screen delivers higher resolution than the other LTE phones available from Verizon.  It may also deliver better battery life.

Of course, Samsung and HTC already make some pretty amazing 4G phones and both are no doubt working on dual-processor models.  But Motorola, a storied name in radio communications, has been on the sidelines the last year or so and everyone is pretty keyed up to see what wondrous things it may finally have wrought.  

Maybe that will happen soon.  Or not.

Even before Google bought Motorola Mobility, there was a lot of excitement and buzz around the Droid Bionic, Motorola's latest attempt to get back into the...

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Cell Phone Carriers Brace for Hurricane Irene

It used to be said that if tourists visiting New York looked at the local TV news their first night in town, they would spend the rest of their visit huddled behind the locked doors of their hotel room.

The same situation applies today to the 60 million or so Americans who are in the expected path of Hurricane Irene, a huge storm closing in on the East Coast and likely to leave a path of destruction from the Carolinas to New England.

There will be massive property damage and probably major loss of life.  And not only that, our cell phones may not work.  No one will be able to find the nearest Starbucks on their iPhone as they run for their lives before the approaching storm.

It used to be that landlines failed in times of emergency.  The most classic breakdown occurred when President John F. Kennedy was assassinated in Dallas back in 1963.

No dial tone

So many denizens of Washington, D.C. raced for the phone that for hours after the event, it was nearly impossible to get a dial tone in and around Washington.

These days, everyone reaches constantly for their cell phones, fully expecting them to work regardless of whether the nation is under attack, flooded or being swept away by a massive dust storm. 

But the truth of the matter is that cell phones are, if anything, a bit less reliable than the old landline system.  The towers that run the system rely on electricity, after all, and while some have back-up generators, not all do.

Further, the cell phone antennas are mostly mounted on towers -- you know, things that stick up in the air.  They tend to blow down when the wind blows, fall over when the earth quakes and melt when surrounded by wild fires. Likewise, the fiber optic cables that tie the system together are vulnerable to floods, fire and wind damage.

But the most destructive factor of all is the avalanche of eager callers who grab their phones at the first sign of trouble and begin calling everyone on their "friends" list.  No telephone system is capable of handling 100% of its customers at any given time and the cell phone system is no exception.

Night and day

The major cell phone companies -- AT&T, Verizon Wireless and Sprint Nextel -- all say they have been working night and day to prepare for Irene.  They're installed additional generators, ordered extra fuel and set up portable cell towers on wheels that can be deployed to replace permanent towers that have been knocked out of service.

So does this mean that everything will be OK?  

Not likely.  Things are seldom OK on the country's most overloaded cell phone networks.  New York City is infamous for having some of the most overloaded frequencies anywhere.  D.C., where everyone basically talks (and talks and talks) for a living, is not much better.

What's a consumer to do?  The short answer is to make contact with friends and family before the storm hits.  Say what you have to say: arrange a meeting place, devise a plan, say your last good-byes, whatever seems appropriate.  Then stay off the phone until the storm passes so that truly important calls can get through. 

It used to be said that if tourists visiting New York looked at the local TV news their first night in town, they would spend the rest of their visit huddl...

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Recharge Your Cell Phone By Walking

A major annoyance of modern life is reaching for your smartphone, only to discover the battery is low. Two engineers at the University of Wisconsin (UW) have created a solution – technology that recharges the battery while you walk.

Tom Krupenkin and Ashley Taylor call it “in-shoe technology,” which they say consists of a shoe insert that generates electricity from the wearer's footsteps.

In a paper appearing this week in the journal Nature Communications, Krupenkin and Taylor describe a new energy-harvesting technology that promises to dramatically reduce our dependence on batteries and instead capture the energy of human motion to power portable electronics.

"Humans, generally speaking, are very powerful energy-producing machines," said Krupenkin, a UW-Madison professor of mechanical engineering. "While sprinting, a person can produce as much as a kilowatt of power."

Foot power

Grabbing even a small fraction of that energy, Krupenkin points out, is enough to power a host of mobile electronic devices — everything from laptop computers to cell phones to flashlights.

"What has been lacking is a mechanical-to-electrical energy conversion technology that would work well for this type of application," he said.

As consumers well know, energy harvesting technologies are aimed at either high-power applications such as wind or solar power, or very low-power applications such as calculators, watches or sensors. There has been no solution for those vital, mid-level power needs.

"What's been missing," said Taylor, "is the power in the watts range. That's the power range needed for portable electronics."

Wearing an energy harvester

How would it work? A consumer would wear a special footwear-embedded energy harvester that captures energy produced by humans during walking, which is normally lost as heat. The shoe devicce would capture that energy and convert it into up to 20 watts of electrical power that can be used to power mobile electronic devices.

Unlike a traditional battery, the energy harvester never needs to be recharged, as the new energy is constantly generated during the normal walking process. And it gets better.

The energy generated by the footwear-embedded harvester can be used to directly power a broad range of devices, from smartphones and laptops to radios, GPS units, night-vision goggles and flashlights. Alternatively, the energy harvester can be integrated with a Wi-Fi hot spot that acts as a "middleman" between mobile devices and a wireless network.

Recharge wirelessly

This allows users to seamlessly utilize the energy generated by the harvester without having to physically connect their mobile devices to the footwear. The researchers says this dramatically reduces power consumption of wireless mobile devices and allows them to operate for much longer time without battery recharge.

"You cut the power requirements of your cellphone dramatically by doing this," saod Krupenkin. "Your cellphone battery will last 10 times longer."

Krupenkin and Taylor are hoping to commercialize the technology through a company they've established, InStep NanoPower. They say they hope to have their “foot power” battery charger perfected and on the market within two years.

Two mechanical engineers are developing a battery charger that uses energy generated by walking...

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Verizon Strikers Return to Work ... for Now

Union workers have called a truce in their 15-day strike against the company and will be going back to work tonight (Monday). 

But if you have an installation or trouble ticket pending, beware. The unions and company have not come any closer to an agreement, they've just agreed to call off the strike for now.  The unions could still go back on strike if the talks don't go well.

More than 45,000 workers from Virginia to New England went on strike to express their anger at what they saw as the company's refusal to bargain seriously.  The workers are members of the Communications Workers of America (CWA) and the International Brotherhood of Electrical Workers (IBEW).  They do everything from splicing fiber optic cable to working as customer service representatives.

The strike affects only Verizon's land-line businesses -- primarily local telephone service and FiOS, which have both been shrinking steadily as customers move to wireless phones and rivals including AT&T and cable companies.

It does not affect Verizon Wireless, a separate company.

The union workers are most upset about concessions the company is seeking on pensions, health care and job security, and it's not seen as likely that those issues will be resolved quickly.  

CWA President Larry Cohen said Sunday that the process will "take definitely weeks, not days" and said union members might have to return to the picket lines if there's no progress.

Union workers have called a truce in their 15-day strike against the company and will be going back to work tonight (Monday).  But if you have an ins...

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Overtime Case Against AT&T Moves Forward

A U.S. District Court Judge in Atlanta has certified a class action by AT&T employees, enabling them to participate in class actions seeking some $1 billion in unpaid overtime wages.

The decision by Chief U.S. District Judge Julie E. Carnes applies to the company's so-called "First Levels", who worked for the telecom giant in a 9-state region comprising FloridaGeorgiaMississippiTennesseeNorth CarolinaAlabamaLouisianaSouth Carolina and Kentucky.

The Georgia ruling is the third recent favorable class and collective certification decision achieved by Sanford Wittels & Heisler for Level One Managers. It follows two decisions in late 2009 and 2010 that opened the door for class actions against AT&T'sConnecticut subsidiary Southern New England Telephone Company (SNET) and AT&T's California subsidiary, PacBell.

The SNET case is scheduled for trial on October 3 of this year where AT&T's operating company has more than $60 million of exposure in that case alone.

Fair Labor Standards Act

All three suits allege AT&T and its subsidiaries violated the Federal Fair Labor Standards Act (FLSA) and state laws by carrying out a companywide policy to wrongfully misclassify thousands of its Level One Managers exempt from overtime wages.

"Judge Carnes' decision gives the green light for aggrieved Level One Managers working for BellSouth to join their colleagues across the country to pursue the compensation they deserve for the all the overtime hours they've been expected to work for free," said Steven L. Wittels, Co-Lead Class Counsel.

AT&T, the eighth largest of the Fortune 500, has revenues of over $100 billion a year and employs 294,600 workers worldwide.

First Level "Managers" are ground troops in the multi-billion dollar operation, who perform primarily clerical duties and relay information between company management and its technicians in the field.

AT&T and its operating subsidiaries require these employees to work upwards of 60 hours a week, but claim that these workers do not deserve overtime pay.

"AT&T consistently violates federal and state laws in compensating its First Levels," said co-Lead Counsel Janette Wipper. "Although their job title includes the term "manager," these individuals manage nothing and have no management responsibilities. The company uses this job title merely as a means to extract from these employees more hours of work, without providing them any additional compensation."

The three class action complaints charge that against AT&T and its subsidiaries fail to pay Level One employees overtime wages for work in excess of 40 hours a week and eight hours a day; fail to provide these workers with mandatory meal periods and rest breaks; and fail to keep accurate records of the hours these employees work. 

A U.S. District Court Judge in Atlanta has certified a class action by AT&T employees, enabling them to participate in class actions seeking some ...

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AT&T Filings May Cast Doubt On Its Main Pro-Merger Argument

AT&T may be its own worst enemy.  

Opponents of the telecom giant's plan to take over T-Mobile are pointing to documents AT&T filed with the Federal Communications Commission last week that cast doubt on AT&T's claim that it can't build out its 4G LTE service nationwide unless it acquires T-Mobile.

Communications Daily, which was first to publish the documents, reports that in the filing, AT&T admitted that expanding its most advanced network to 97 percent of the country would cost only an estimated $3.8 billion. But the filing shows AT&T rejected that option, claiming there wasn’t a “viable business case” to justify the expansion.

Yet the company is willing to spend $39 billion on the T-Mobile takeover — 10 times as much. And the company is committed to paying T-Mobile $6 billion in total compensation if the deal falls through, $2.2 billion more than it would cost to expand its service.

Meanwhile, the consumer group Free Press obtained an AT&T fact sheet being used to lure support for the merger. The fact sheet features the claim that the proposed combination of AT&T and T-Mobile is the "rare case where 1 + 1 = 3."

"Only at AT&T does one plus one equal three. You can call it fuzzy math or you can call it lying, but AT&T's case for this takeover doesn't withstand scrutiny," said Free Press President and CEO Craig Aaron.

"As the real numbers and facts come to the public's attention, support for this merger continues to unravel. The Department of Justice and the FCC have all the evidence they need to block this dangerous deal," Aaron said.

Competition killer

"We now know the truth: AT&T is willing to pay a $39 billion premium for one reason and one reason only — to kill off the competition," he said. "It would cost AT&T one-tenth of the merger’s cost to expand its network than to buy up T-Mobile. Yet AT&T is willing to pay a 900-percent markup to take out a lower-priced competitor and make sure it can lock in and gouge consumers in the future."

The only thing stopping AT&T from expanding its network is greed, Aaron said.

"AT&T has already told Wall Street it plans to cut investment by $10 billion if the deal goes through. And there has never been a merger that didn't lead to job cuts—or synergies, as AT&T calls them," he added. "At a moment when Washington claims to be all about job creation, policymakers are staring at a deal that will likely push another 20,000 workers into the unemployment line."

The growing anti-AT&T blowback may be having an effect. A Stifel Nicolaus poll of telecom analysts released late last week gave the deal only a 49.5 percent chance of being approved.

AT&T may be its own worst enemy.   Opponents of the telecom giant's plan to take over T-Mobile are pointing to documents AT&T filed with the...

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What's On Your Mind? T-Mobile, Amazon.com, Miracle Ear, American Home Shield

While a lot of groups, pro and con, have opinions about the proposed acquisition of T-Mobile by AT&T, Jack, a businessman from Miami, Fla., has added another issue to the debate. On his return from China, Jack said he became involved in a billing dispute with T-Mobile over roaming charges on his Blackberry.

“To leave T-Mobile and go to another company, unfortunately there is no alternative for the Blackberry emails oversea, except for AT&T,” Jack told ConsumerAffairs.com. “But T-Mobile is going to merge with AT&T soon, it will create a cartel on the Blackberry emails overseas. I hope very much as a citizen of the USA that FCC will not approve the merger between T-Mobile and AT&T.”

Jack should direct his concerns to the Federal Communications Commission and Department of Justice, which will have the final say about the proposed merger.

Seller beware

Millions of people use e-commerce sites like eBay and Amazon.com and rarely stop to think about the nature of some of these transactions – strangers dealing with strangers. All in all, it probably works remarkably well, but Dhana, of Pomona, Calif., has had a bad experience that gives him pause.

“I sold my text book through Amazon.com, Dhana said. “Amazon sent me an e-mail, telling me that buyer claimed he/she did not receive the product after a month and demanded a refund. The package was properly packed, sealed with the address printed from Amazon. How could this happen?”

Dhana said he lost both his book and his money, and has this advice.

“Sellers, beware, you have no idea what type of people you are selling your products to,” he said.

Another set of eyes and ears always helps

Deborah, of Shrewsbury, Mass., has a complaint about Miracle Ear. Besides dissatisfaction with the product, Deborah thinks the company took advantage of her 83-year-old mother.

“She signed for a sear credit card under the impression she was signing a form which stated she had a hearing examination,” Deborah told ConsumerAffairs.com. “This signature was 'requested' when her son-in-law left the room as he thought the appointment was over.”

Deborah's complaint is a reminder that it is always a good idea to have family members in a supportive role to witness business transactions involving elderly relatives, to help answer any questions.

Loopholes

Carlo, of Lake View Terrace, Calif., said he purchased a home warranty from American Home Shield three years ago but never used it until last month, when the toilets in his home backed up. According to his policy, he says, plumbing problems are covered.

“I contacted them, and they arranged to send somebody to look at the toilets,” Carlo said. “One toilet was not fixed and still backs up, and when I called them back to report the problem, they told me that my contract did not covered water sediments. I paid out pocket $60.00 deductible for them to show up and the report that the technician wrote does not mention any water sediment findings.”

Carlo thinks AHS made this up to avoid paying to fix the problem, but regardless, its an example of how these service contracts often leave consumers disappointed. The consumer thinks plumbing problems are covered, but they aren't, if they happen to be caused by sediments.

Here's what's on consumers' minds today...

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Critics Step Up Attacks On AT&T Merger Plans

One of AT&T's arguments for acquiring rival T-Mobile is that the combined companies will help it expand 4G LTE service to the entire country. But critics of the deal point to a document they say contradicts that.

Comm Daily has published a document it says is from AT&T's filing with the Federal Communications Commission (FCC), admitting that expanding its most advanced network to 97 percent of the country would cost an estimated $3.8 billion. But the filing shows AT&T rejected that option, claiming there wasn’t a “viable business case” to justify the expansion.

So why, critics ask, is AT&T willing to spend $39 billion on the T-Mobile takeover — 10 times as much? And the company is committed to paying T-Mobile $6 billion in total compensation if the deal falls through, $2.2 billion more than it would cost to expand its service.

On Friday, the consumer non-profit Free Press said it obtained an AT&T "fact" sheet being used to lure support for the merger. The fact sheet features the claim that the proposed combination of AT&T and T-Mobile is the "rare case where 1 + 1 = 3."

Fuzzy math

Free Press President and CEO Craig Aaron says, not only is it fuzzy math, but AT&T's case for this takeover doesn't withstand scrutiny.

“As the real numbers and facts come to the public's attention, support for this merger continues to unravel,” Aaron said. “ The Department of Justice and the FCC have all the evidence they need to block this dangerous deal.

Aaron claims the real reason AT&T is willing to pay a $39 billion premium for T-Mobile is to kill off the competition.

“It would cost AT&T one-tenth of the merger’s cost to expand its network than to buy up T-Mobile,” Aaron said. “Yet AT&T is willing to pay a 900-percent markup to take out a lower-priced competitor and make sure it can lock in and gouge consumers in the future. The only thing stopping AT&T from expanding its network is greed. One plus one does not equal three, but subtracting one competitor adds up to billions in profits for AT&T and thousands of Americans out of work.”

Largest mobile network

The combination of AT&T and T-Mobile would create, by far, the nation's largest mobile network. Verizon Wireless, currently the largest mobile provider, would be a distant second.

Sprint CEO Dan Hesse has been outspoken in his opposition to the proposed deal, saying if it is allow to proceed, it would not bode well for the U.S. wireless industry.

Critics of AT&T's plan to buy T-Mobile say a document undermines the company's case...

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Apple's iPad Leaves Other Tablets in the Dust

When computer and smartphone makers saw the success of the iPad, they did what any self-respecting business what do: rushed to get into the fray.

But it hasn't turned out very well for the would-be competitors. Yes, iPad and Apple have their detractors but they have something else that's even more important: customers, lots of them.

Apple has sold 28.7 million iPads since the device was launched in April 2010. Analysts estimate that Apple controls at least two-thirds of the tablet market but admit the actual figure could be higher.

It's hard to get an exact comparison because competing manufacturers – Samsung, H-P, Motorola and Blackberry being the most prominent – so far haven't disclosed their sales figures, although they boast about how many units they have shipped to stores. Shipping isn't the same as selling, of course.

Amazon's Kindle isn't included in the figures because it's an e-reader, not a tablet computer.  The iPad is a tablet that makes a really nifty e-reader though.

First not always best 

Samsung was the first to jump into the tablet market after Apple and boasts of shipping two million Galaxy Tabs to wireless carriers and retailers. But now the company is locked in a patent dispute with Apple that threatens to shut down sales of the Galaxy in most of Europe.

Actually, for a product that has been so successful, the iPad's detractors are few and far between. In July 2010, a class action lawsuit claimed the iPad could overheat in bright sunlight. Less than a year later, a judge dismissed the suit, saying basically that the allegations were overcooked.

And while many electronic geegaws are quickly denounced by educators, there's been remarkably little grousing from teachers and parents about the iPad. In fact, mothers are positively aglow over their little darlings' quick adoption of mousing over, minimizing and so forth.

One study found that children today are likely to learn to navigate an iPad before they learn to tie their shoes.

Anti-Asian?

At one point last year, Andrew Cuomo, who was then the New York Attorney General (he's now the Governor) opened an investigation into whether Apple was discriminating against Asian customers. A state legislator had complained that Apple Store clerks subjected Asian customers to questions about passports and English proficiency.

The suspicion was that Apple was trying to prevent exports of the device to China. Nothing came of the probe, though, and Cuomo has moved on to bigger headaches.

ConsumerAffairs.com is shockingly bereft of consumer complaints about the iPad. One of the few we know of occurred when your faithful reporter was seated on a Virgin America flight at Dulles awaiting departure to LAX.

A fellow passenger squeezing by in the aisle remarked to his companion, "Look at that guy. He went and wasted his money on an iPad." (I informed him it was my company's money that had been spent. Whether it was wasted or not is open to debate).

This still puts the iPad a notch above the Kindle. While seated in the same situation a year or two before, I was minimally assaulted by a fellow passenger who slapped my Kindle as she passed by, declaring it "evil." I made no rejoinder in that case, as she was quite a bit bigger than I.

And by the way, neither one is much good in bright sunlight, for what that's worth.

When computer and smartphone makers saw the success of the iPad, they did what any self-respecting business what do: rushed to get into the fray. But it h...

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What's On Your Mind? AT&T, PNC Bank, DIRECTV, Orbitz

One of the never-ending complaints about cell phones is reception. If you aren't close to a tower -- or if towers in your area are overloaded -- you'll have bad or no service.

“My AT&T contract was up in January this year,” Connie, or Peru, Ill., told ConsumerAffairs.com. “I always had poor service at my home and at my mother in laws house, which is seven blocks north of mine. I went to AT&T when my contract was up this winter and inquired if I could get better reception and to look at an iPhone 3G. I was told that they had a new tower at St. Bede which is west of my home about 2 -3 miles and I should get reception now. Foolishly, I believed them, and have been having trouble since. They will not let me out of my contract without paying the early cancel fees.”

Unfortunately, Connie missed her opportunity to switch service providers in January. Consumers just can't rely on what sales personnel tell you about coverage. The only thing you can do is ask someone who lives nearby what provider they use and if they're happy. Even then it can be hit or miss.

Wrong number

Jennifer, of Niles, Ill., doesn't bank with PNC, but she talks to them several times a day. I seems when the data for a PNC customer was put into the system, someone mistyped that customer's phone number. The number in the system happens to be Jennifer's cell phone number.

“This customer of theirs has been defaulting on a line of equity loan since 2010, so, the PNC Bank collection representatives have been calling me every time ever since Jennifer said. “It is now 2011 August, and I still get calls from them several times throughout the day.”

Jennifer said she has tried explaining the problem to the callers, and even their supervisors, to no avail. The calls, several times a day, keep coming.

“They have been wasting my cell phone minutes time after time on top of wasting my time,” Jennifer said.

If Jennifer has tried to resolve the matter with supervisors without success, sadly, they only thing left for her to do is change her cell phone number.

Take a number

Whenever you cancel a service, the rep who is helping you should give you a confirmation number. Write it down, because you may need it later.

“In June I called DIRECTV to cancel my service as of July 1, 2011,” Susan, of Bethesda, Md., told ConsumerAffairs.com. “I spoke to a nice lady who told me my billing cycle ended on the 21st of each month. So I told her I would average out my bill for the ten days I would be using their service and sent in that amount, $29.80. Today I received a bill in the amount of $151.84.”

Susan said she called and was told DIRECTV had no record of her cancellation.

“I told them I had been a good and loyal customer for years and wanted $122.04 removed from my bill,” Susan said. “I was told this was impossible. I than asked to be transferred to someone in the complaint or billing department. I was transferred to Angie who told me there was no solution.

Without a confirmation number, there probably isn't a way for Susan to show that she cancelled the service when she said she did. When cancelling a service online, make sure you print the confirmation page and file it away.

Peeved parent

David, of Wichita Falls, Tex., is angry at Orbitz and says he defies the company to challenge the facts.

“I had booked an airline/hotel/rental car package through Orbitz several weeks in advance and received an itinerary,” David said. “A few days prior to my flight, the itinerary was changed to the next day. I could not fly out the next day -- I would miss my only child's wedding, which is exactly what happened! To add insult to injury, Orbitz refused to assist me in obtaining even a partial refund or getting the flight rescheduled so I could at least visit the happy couple after the honeymoon.”

Yes, travel plans can sometimes get scrambled, but it seems you increase the odds of that happening when you try to do everything through one Internet site. Better to make your reservations directly with the airline, hotel and rental car or visit your local travel agent – especially when the travel is to a once-in-a-lifetime event.

Here is what's on consumer's minds today: AT&T, PNC Bank, DIRECTV, Orbitz, Wrong number, Take a number and Peeved parent....

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New Facebook App Bypasses Texting Charges

Hours after debuting in Apple's iTunes App store Tuesday, free Facebook Messenger became the number one downloaded app. It's already collected hundreds of reviews, if not all of them are exactly flattering. The app has an average 3.5 out of 5 stars. 

The app allows users to send and receive messages through Facebook, updating in real time. If you have a new message, it pops up.

Isn't that a lot like texting, you ask? Exactly. The app allows you to reach out and touch a Facebook friend for free, bypassing your cellphone provider's charge for texts.

"Messenger is a separate app, so it only takes one click to get to your messages or send a new one,” said Lucy Zhang, writing on the Facebook Blog. “Messages are delivered through notifications and texts, so your friends are more likely to get them right away.”

Not all your contacts are on Facebook? Not a problem. Zhang says you can use Messenger to reach all of your friends -- whether they're on Facebook or in your phone contacts. All you have to do is type the person's name.

Facebook Messenger is available for both iPhone and Android devices.

Facebook Messenger may make texting your friends less expensive...

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10 Year-Old Shows Hacking Can Be Child's Play

“CyFi,” the screen name for a 10 year-old girl from California, stole the show at the Defcon conference in Las Vegas, drawing security experts from around the world.

“CyFi,” whose real name has not been divulged, made headlines with her presentation in which she revealed her discovery of a flaw in smartphone security. The discovery stemmed from her impatience in playing a game in which virtual crops had to grow. She discovered she could make them grow instantly by simply advancing the device's clock ahead.

The youngster reported that it was fairly simple to get around the game's security measures designed to detect such cheating. She said she repeatedly disconnected her device from wifi and moved the clock ahead in small increments.

Potentially dangerous flaw

Security experts say there is a lot more at stake than simply cheating at a child's game. They say it is these kinds of flaws that allow hackers to run their own code, taking control of a device.

While PCs normally run some type of anti-virus software, security experts worry that too many mobile devices are unprotected. And given the proliferation of smartphones and tablets in the last two years, it's a good bet that hackers have taken note.

Some providers say they have that base covered. For example, Apple says iPhone users' data is protected with hardware encryption and enhanced data protection. The company says users can security access corporate networks with iPhones and iPads.

Makers of anti-virus products for PCs have also begun offering security tools for smartphones.

To keep their smartphones secure, consumers should:

  • Set a password for the phone, in case it gets lost
  • Download updates
  • Treat your phone like you would a computer
  • Be careful when downloading apps, downloading only from trusted sites
  • Don't enter sensitive information when connected to a public wifi
  • Enable a “wipe” feature on your phone, so you can remove data if you lose your phone

A 10 year old girl has exposed a security flaw in smartphones...

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45,000 Verizon Workers Go On Strike

For the first time since 2000, Verizon workers have gone on strike.  The Communications Workers of America (CWA) and International Brotherhood of Electrical Workers (IBEW) walked out Sunday afternoon after contract talks broke down.

"Since bargaining began on June 22, Verizon has refused to move from a long list of concession demands," the CWA said in a prepared statement. "As the contract expired, nearly 100 concessionary company proposals remained on the table.

"As a result, CWA and IBEW have decided to take the unprecedented step of striking until Verizon stops its Wisconsin-style tactics and starts bargaining seriously," the statement continued.

The strike affects field technicians and call center workers at Verizon offices from Virginia to New England.  It does not affect workers at Verizon Wireless, which is a joint venture of Verizon and Vodafone. 

The striking employees work on "land-line" services -- telephone, DSL and FIOS.  All but FIOS have been shrinking steadily in the last decade as consumers increasingly turn to wireless phones and cable television.

A rally at Verizon headquarters
in New York. (CWA photo)

CWA and IBEW have about half as many members at Verizon today as they did in 2000, due to constant layoffs and job eliminations which Verizon says are necessary to stay competitive.

Deep concessions

Verizon is seeking deep concessions. It wants to freeze pensions, tie pay increases more closely to job performance, make it easier to fire employees for cause and require workers to contribute $100 or more a month toward health-plan premiums. The company also wants to eliminate the Veterans Day and Martin Luther King Jr. Day holidays.

The union says the company's demands are unreasonable.

"Verizon continued to seek to strip away 50 years of collective bargaining gains for middle class workers and their families," the unions said. 

"CWA and IBEW members are prepared to return to work when management demonstrates the willingness to begin bargaining seriously for a fair agreement. If not, CWA and IBEW members and allies will continue the fight," the CWA said on its Web site.

Verizon said it has planned for the strike and will be using management and non-union personnel to fill in.

For the first time since 2000, Verizon workers have gone on strike.  The Communications Workers of America (CWA) and International Brotherhood of Elec...

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Are You Addicted to Your Smartphone?

What's the one device you can use while driving, eating, going to the bathroom, feeding your baby, donating blood or having a profound and soul-searching discussion with your significant other?

Yes, of course, it's the smartphone, the addiction of choice for a fast-increasing percentage of the world's population.  Take, for example, a recent study in Britain, which found: 

  • Over a quarter of adults and nearly half of all teens now own a smartphone;
  • 37 per cent of adults and 60 per cent of teens are "highly addicted" to them;
  • Smartphones are beginning to affect social behavior.

The study from the British research firm Ofcom found that over a quarter of adults (27 per cent) and almost half of teenagers (47 per cent) now own a smartphone.

Most (59 per cent) have acquired their smartphone, which includes devices such as iPhones, Blackberrys and Android phones, over the past year.

Users make significantly more calls and send more texts than regular mobile users (81 per cent of smartphone users make calls every day compared with 53 per cent of "regular" users).  Teenagers especially are ditching more traditional activities in favor of their smartphone, with 23 per cent claiming to watch less TV and 15 per cent admitting they read fewer books.

And when asked about the use of these devices, 37 per cent of adults and 60 per cent of teens admit they are "highly addicted."

In the bathroom and at the dinner table

The rapid growth in the use of smartphones – which offer internet access, email and a variety of internet-based applications – is changing the way many of us, particularly teenagers, act in social situations.

The vast majority of smartphone users (81 per cent) have their mobile switched on all of the time, even when they are in bed, with four in ten adults (38 per cent) and teens (40 per cent) admitting using their smartphone after it woke them.

Over half (51 per cent) of adults and two thirds (65 per cent) of teenagers say they have used their smartphone while socializing with others, nearly a quarter (23 per cent) of adults and a third (34 per cent) of teenagers have used them during mealtimes and over a fifth (22 per cent) of adult and nearly half (47 per cent) of teenage smartphone users admitted using or answering their handset in the bathroom or toilet.

Teenagers are also more likely to use their smartphone in places they’ve been asked to switch their phone off such as the movie theater or library – with 27 per cent admitting to doing so, compared with 18 per cent of adults.

Work/life balance

Ofcom’s research found that the line between work and social time is also becoming increasingly blurred.  Thirty per cent of smartphone users say they regularly take part in personal phone calls during working hours, compared with 23 per cent of regular mobile phone users. 

However, smartphone users are more likely to take part in work calls while on holiday or vacation.  Seventy per cent say they have ever done so, with a quarter (24 per cent) admitting to doing so regularly, compared with just 16 per cent of ordinary mobile phone users.

Generation App

The research also looked at the popularity of applications, or ‘apps’, among smartphone users and found that just under half (47 per cent) of adult smartphone users have downloaded an app – with many people taking advantage of the availability of free apps.

Teenage smartphone owners are more likely to have paid for an app download (38 per cent) than adult owners, amongst whom just a quarter (25 per cent) had paid for an app.

Teenagers are most likely to part with their pocket money for games, with a third (32 per cent) having paid for at least one game. Music is the next most popular genre amongst teens with 22 per cent having paid for a music-based app.

Adults are also most likely to pay for games (15 per cent) and music (8 per cent) apps, with maps/ navigation following close behind (7 per cent).

What's the one device you can use while driving, eating, going to the bathroom, feeding your baby, donating blood or having a profound and soul-searching d...

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iPhone Is Now Top-Selling Smartphone

In the technology world, no company has been hotter than Apple. That trend continues as the research firm IDC reports Apple has supplanted Nokia as the world's top smartphone manufacturer in the second quarter of 2011.

According to IDC, Apple shipped 20.3 million iPhones during the second quarter, giving it a 19.1 percent market share. That achievement is impressive when you consider that in the second quarter of 2010, Apple shipped 8.4 million iPhones, and had a 13 percent share of the smartphone market.

In the last year the iPhone has increased its stature as the must-have mobile device. It didn't hurt that in the first quarter of this year, Verizon Wireless – with its much larger subscriber base – started selling the iPhone in the U.S. Prior to that U.S. consumers could only use an iPhone on AT&T's network.

iPhone 5

The iPhone 4, Apple's latest model, is growing a bit long in the tooth by technology standards, since it was introduced 13 months ago. Apple has not confirmed when or if it will issue an update, but rumors suggest the iPhone 5 will be out by October.

While Apple has a good second quarter, so did Samsung. The equipment maker was second in sales with shipments of 17.3 million units, for a 16.2 percent share of the market. It's improvement over the second quarter of 2010 was even more dramatic, with shipments rising 380 percent.

Of course, Apple achieved its numbers on one model – the iPhone. Samsung produces and sells a variety of different model smartphones. IDC said Samsung achieved most of its success, however, on its high-end devices, such as the Galaxy S.

IDC reports Apple is now the top selling smartphone maker...

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What's On Your Mind? Sprint, Toyota, Pearle Vision, MyLife.com

There's nothing more embarrassing that being in an important business meeting and have your cell phone go off. But what if that happens when you've set the device to silent?

“This all started when I heard a faint ringing noise that wouldn’t stop,” Karthik, of Cincinnati, Ohio, told ConsumerAffairs.com. “At first, I didn’t even suspect my mobile device, a Sanyo Zio SCP 8600. After several days of searching, I almost gave up. One fine morning, I was at an official meeting and the noise started. To my embarrassment, the noise was indeed coming from my cellphone, that was silenced! After attempts at silencing the phone again, I ended up shutting down the device, and that is how I keep it at work now!”

Karthik says she has spent countless hours with Sprint trying to pinpoint the problem, to no avail. Anyone else have that problem?

When it rains, it pours

Louis, of Asssonet, Mass., bought a 2010 Toyota last year and really likes it, except for one thing.

“When it rains the sunroof leaks and Toyota has not been able to explain to me what the issue is,” Louis said. “I have reproduced the failure/leak many times at home and took pictures of the issue. But the dealership seems to do nothing about the problem. Any support and help on this issue please feel free to comment. All I want is an explanation why some cars leak and some don't.”

Toyota owners should feel free to chime in, but a sunroof leak could be caused by any number of flaws, included a mismounted window and a damaged gasket. Water can find the tiniest hole. The bigger issue is the repair. Louis says the car is still under warranty, so he should insist that the dealer repair it.

Sour note

Mark, of Jacksonville, Fla., went to Pearle Vision for glasses, informing the optometrist the main reason he needed them was for reading music.

“It's usually a little more than arms length,” Mark told ConsumerAffairs.com. “I showed her by stretching my arm out. The glasses were ready in a little over a week. The fitting did not go well as the glasses were way off. Focal range was about six inches from my nose. The prescription was changed without a new exam. The second pair was worse as the first because it moved the focus to four inches. But, I was told by the professional Pearle Vision associate the distance was ideal for reading a book. Was offered the opportunity to return on another day for a re-exam by the other optometrist. I declined.”

Mark said he returned to an optometrist he had used in the past and was happy. Generally, that's the way it is with healthcare providers. Some you like more than others. Some listen to you, others don't.

Unauthorized charge

Consumers get very upset when they think they are using a “free” service, or are on a “free trials,” only to have charges show up on their credit cards.

"I did a search on MyLife.com for a lady that crossed the pacific with me in1963,” said Paul, or Huger, S.C.. “I did not join the site or give them any credit card information but they were able to hack my account and stole without my consent $14.95 for a Mylife people search. I have no idea how they got my debit card info because I did not provide it to them. This is wrong and very misleading.”

Paul may feel like a hacking victim, but he probably isn't. Chance are he got to the MyLife site by doing an online purchase with another company. It's common practice for one company to share credit card information with “marketing partners.” The consumer has no idea the second company can charge them for something. Paul should be able to ask MyLife to provide a proof of purchase.

Here is what's on consumer's minds today: Sprint, Toyota, Pearle Vision, MyLife.com, Sour note, Unauthorized charge and When it rains, it pours....

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American Express, Verizon Team On Phone Payment System

Plastic replaced cash. Could your smartphone be replacing plastic? American Express and Verizon Wireless are betting it might.

The financial services and telecom giants say they are teaming up on a digital payment and commerce platform that will allow consumers to order and pay for goods by typing in their phone number on select smartphones and tablets.

The two companies plan to integrate Serve, an existing commerce platform, on several Verizon products. In the next few months, Verizon Wireless customers will be able to establish Serve accounts that will enable them to make payments and redeem offers for goods and services directly from their mobile phones and tablets using Serve.

Phone number authenticates

Serve works by authenticating a mobile number, then allowing a customer to make a purchase on-screen. Verizon Wireless customers who have Serve-enabled devices will be able to buy goods and services on their mobile phone in just a few clicks.

The two companies say businesses will benefit as well. Merchants who accept Serve mobile payments will see faster processing and settlement,” they say. The Serve card is currently accepted by the millions of merchants in the United States who accept American Express.

Since coupons are all the rage now, American Express and Verizon Wireless will also hop on that bandwagon. They will collaborate to source, distribute and simplify redemption of online and mobile offers with participating merchants through the use of the Serve account. For example, as customers redeem certain offers or coupons using their mobile phones, the credit may automatically appear in their Serve account.

Payfone

The two companies are also working with Payfone to support Serve checkout on Verizon Wireless devices. Payfone's pre-authorization and routing features will guide Verizon Wireless customers who use the Serve application make mobile payments simply and securely.

"Our collaboration with Verizon highlights the speed at which Serve is evolving to reach a wide audience," said Dan Schulman, group president, Enterprise Growth, American Express. "Verizon Wireless customers will soon be able to complement their busy lifestyle with a trusted payment platform that delivers a fast, flexible and secure way to manage their day-to-day mobile purchases, and together we're taking the necessary steps to make mobile commerce a reality."

Verizon and American Express introduce a new payment system...

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10 Attorneys General Back T-Mobile Acquisition By AT&T

From the minute the proposed deal was announced, some consumer advocates spoke out in opposition to AT&T's plan to purchase T-Mobile.

The proposed deal would create the nation's largest cellular provider, easily eclipsing current number one Verizon Wireless, and consumer advocates warned consumers would pay the price. But not all consumer advocates agree.

Around the country, 10 attorneys general have spoken up in favor of the deal. The group, led by Arkansas Attorney General Dustin McDaniel, a Democrat, and Utah Attorney General Mark Shurtleff, a Republican, calls on the U.S. Department of Justice and the Federal Communications Commission to expeditiously review and approve the proposed merger.

Will benefit consumers

The state officials contend the merger will create new capacity for the combined company, leading to better phone service and faster data downloads for consumers. The attorneys general join 26 governors, other state and local elected officials, 10 national unions, major high-tech and venture capital firms and other national organization in calls for federal regulators to approve the merger.

"There are significant economic and public benefits to this merger, and I'm proud to work with my fellow attorneys general to communicate our concerns to the DOJ and FCC," McDaniel said. "My primary concern is my hope that federal regulators do not require the divestiture of much-needed spectrum capacity."

More broadband

In their letter, the attorneys general cited AT&T's commitment to deploy "Long-Term Evolution" wireless broadband to more than 97 percent of the U.S. population as a result of the merger. LTE is a next-generation technology that supports faster wireless broadband speeds and has fewer delays. The spectrum capacity AT&T would acquire will be critical to serving those needs.

In the letter to DOJ Assistant Attorney General Christine Varney and FCC Chairman Julius Genachowski, the attorneys general urged approval of the merger "with appropriate and carefully-crafted merger-specific remedies and conditions… [that] may be needed to protect competition and the public interest without unduly delaying the merger or undermining the synergies, economies or benefits of the merger."

In addition to McDaniel and Shurtleff, attorneys general from Alabama, Georgia, Kentucky, Michigan, Mississippi, North Dakota, South Dakota, West Virginia and Wyoming signed the letter.

Others oppose

Consumer advocates who oppose the proposed deal say it will stifle competition and lead to higher prices and there are plenty of public officials who agree. In March, New York Attorney General Eric Schneiderman said he is launching a full-scale review of AT&T’s proposed acquisition of T-Mobile, citing tjhe possibility of higher prices for consumers.

Last week Sen. Al Franken (D-MN) formally asked regulators to reject the proposed deal, calling it bad for consumers.

10 attorneys general say the AT&T merger with T-Mobile should go forward...

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Apple Is Top Smartphone Manufacturer In U.S.

Google's Android remains the most-used smartphone operating system but Apple is the leader when it comes to making and selling smartphones, according to the latest monthly data from Nielsen.

In its report for June, Nielson found that phones operating on the Android system make up 39 percent of the market. Apple's iOS system was right behind, at 28 percent.

The difference, of course, is several electronics companies make and sell smartphones that run on the Android system. Apple is the only company that makes a smartphone that runs on iOS - the iPhone.

“Other leading manufacturers include HTC, whose Android phones represents 14 percent of the smartphone market and whose Windows Mobile/WP7 devices account for six percent of the market; and Motorola, whose Android devices are owned by 11 percent of smartphone consumers,” Nielsen reported.

Samsung’s Android devices are used by eight percent of smartphone owners while their Windows Mobile/WP7 phones are used by two percent of smartphone consumers.

Apple makes and sells more smartphones than any company...

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What's On Your Mind? Virgin Mobile, Sirius XM, Experian

Prices are going up all the time. But when you make a buying decision based on an advertised price, don't you have an expectation of paying that price? Courene, of Scranton, Pa., does.

“I ordered an LG Optimus V on July 13 from Virgin Mobile, Courene told ConsumerAffairs.com. “At that time, the lowest plan advertised on their website was $25, which is why I decided to purchase this phone and service. The phone was shipped to me on July 14 and received on the 16th.”

When Courene attempted to activate the phone on July 25, she noticed the plan was now advertised as $35 on the website. After calling customer service, Courene was told that Virgin Mobile would not honor the $25 plan.

“That is completely ridiculous,” she said. “While I understand their right to increase plan costs, I strongly feel that because I ordered under the original, advertised cost of $25, I should be grandfathered in and have an adjustment to that plan’s cost. They have a record in their system of when I made the purchase.”

True. The only extenuating circumstance would be if Virgin Mobile requires a phone to be activated shortly after receiving it. Courene waited nine days, which could be the cause of confusion.

Lifetime may not always mean your lifetime

Sirius XM satellite radio offers a “lifetime” subscription, offering service forever for one upfront fee. Or, maybe not. Allan, of Front Royal, Va., said he upgraded to lifetime membership in 2007 and, last month rented a car for a road trip.

“When I called to transfer my service temporarily to the rental car receiver, I was told it would be a $15 fee,” Allan said.

But that wasn't the extent of the bad news.

“When the rep found out I was a lifetime member, she informed me that the cost to change radios was $75, and there are a maximum of three changes allowed,” Allan said. “So after paying $75, if you change three times, you're stuck with whatever car you last put it in. Can you believe that? Who goes through only 3 cars in their lifetime.”

Indeed, something to think about when considering a “lifetime” membership. Apparently it isn't forever.

You can cancel, if you can find us

Nelson, of Los Angeles, ordered his credit report and score from Experian for $1, thinking he would cancel the required ongoing service agreement within the trial period, thus avoiding the $14.95. Easier said than done, it turns out.

“The problem is that the contact numbers they provide on their website, including the one for questions regarding the their limited offer, are not helpful,” Nelson told ConsumerAffairs.com. “They have an answering system that does not provide the consumer with the option to speak with a live representative. I need to cancel my membership! I don't want to be charged for something I'm not going to use on a monthly basis.”

Nelson said that he finally reached a live operator, who gave him another number to call, which put him back in the voice mail maze.

“I'm very frustrated and very disappointed at Experian's lack of customer service/support,” Nelson said. “I'm beginning to question their honesty. I'm not sure why they're doing this.”

Perhaps they're making it hard for Nelson to cancel because they don't want Nelson to cancel. Nelson is probably not the first person to think he can get his credit report, then cancel without having to pay a monthly charge. Nelson, by the way, should have gone to www.annualcreditreport.com, where he can get a free copy of his credit report from all three reporting agencies, with no strings attached.

Here is what's on consumer's minds today: Virgin Mobile, Sirius XM, Experian, Lifetime may not always mean your lifetime and You can cancel, if you can fin...

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Senator Urges Regulators To Nix AT&T Merger With T-Mobile

In a not unexpected move, Sen. Al Franken (D-Minn.) has told federal regulators they should deny AT&T's request to acquire T-Mobile, saying the merger would drive up prices for wireless customers and likely cost thousands of jobs.

In a filing sent to the Department of Justice (DOJ) and the Federal Communications Commission (FCC), Franken said the merger is a bad deal for consumers. He cited some analysts' predictions that wireless costs could go up by as much as 25 percent as a result.

He also said that the merger would further stifle competition in an already-concentrated wireless market and would allow only two companies-AT&T and Verizon-to control more than 80 percent of the market. Verizon is currently the largest U.S. wireless provider but would fall to a distant second behind AT&T, if it joins forces with T-Mobile.

'Not in the public interest'

"This transaction is not in the public interest," Franken said in his filing. "If approved, it would result in greatly reduced competition, the potential loss of thousands of jobs, higher consumer prices, and less innovation in technology. I urge the FCC and the DOJ to deny AT&T's application for approval of its acquisition of T-Mobile."

Franken's opposition to the proposed deal was not exactly a secret. He initially raised concerns about this merger during a statement on the Senate floor on May 4. Franken also questioned the impact of the merger on consumers at a Judiciary Committee hearing in May.

To sign off on the deal, the FCC must accept a deal that reduces the number of wireless carriers in the U.S. while creating, by far, the nation’s largest mobile company. The Justice Department, meanwhile, will look at anti-trust issues, to make sure the merger will not hurt competition. In markets where AT&T and T-Mobile are significant competitors, this could prove problematic.

The big three

If the deal is approved, 90 percent of the wireless business would be concentrated among just three companies – AT&T, Verizon and Sprint/Nextel. Of that, AT&T would have 43 percent of the business.

Will it be enough to derail the deal? Possibly, but AT&T is known in Washington for its lobbying power. The company says current customers of both companies will benefit from the union, because of expanded network coverage and additional spectrum.

Senator Al Franken has publicly urged regulators to reject AT&T's bid to acquire T-Mobile...

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What's On Your Mind? Verizon Wireless, Match.com, Cash Yes

When your new, expensive smartphone breaks in the first few months of use, what happens? Rocky, of Manassas, Va., found out, and isn't happy about what he learned. He said he purchased a Blackberry through Verizon Wireless in January and it broke in May. He said he next took it to a Verizon store.

“The customer rep said 'we don't fix phones,'” Rocky told ConsumerAffairs.com. “I explained that Verizon is responsible for fixing phones because of the expense and they have a one year warranty. The rep said 'you have to buy insurance on the phone.'”

It's true. When you purchase a new phone the last question the sales rep asks is if you want to buy insurance on the phone. But doesn't the manufacturer – RIMM, in Rocky's case – have some responsibility? Indeed they do, and according to RIMM's Web site, Rocky's phone should be covered by a one year manufacturer's warranty

Rocky's mistake is his assumption that Verizon Wireless would take care of the repair for him. They won't, and in fairness, neither will other retailers who sell products that have a manufacturer's warranty. The consumer must deal directly with the manufacturer. Verizon only gets into the act if you buy one of their insurance policies.

Let's see some ID

Lisa, of North Port, Fla., signed up with Match.com because the dating service said it checked members' IP address, profile and picture before they post information. But after using the service, Lisa says she doesn't think that's true.

“I found that every person that contacted me was a fraud,” Lisa said. “I learned this after losing money to an online scammer, and have since learned that many, many of Match.com members are actually Nigerian or Turkish scammers. Match.com could easily check this if they did check IP address with physical location the member says they are from.”

It goes without saying you should exercise a healthy dose of skepticism about anyone you meet on a dating service until you meet them face to face – and maybe for a while afterward, too.

Expensive loan

Stephanie, of San Diego, reports her husband borrowed $700 from Cash Yes, a payday lender, in January. As of last week, she said the company had taken $1,974.50 from her checking account.

“When my husband called they told him we still have a balance of 300.00 dollars,” Stephanie told ConsumerAffairs.com. “That means we will have paid over $2200.00 dollars by the time this $700.00 dollar loan is paid off? I'm not sure how this is legal.”

It isn't in 16 states. Unfortunately for Stephanie and her husband, California isn't among the states that have banned payday loans. Stephanie's loan balance mushroomed, in all probability, because the loan was renewed every two weeks.

The Center for Responsible Lending says payday loan terms include high-cost fees and triple-digit interest rates. Instead of a small amount owed for a couple of weeks, borrowers become trapped in thousands of dollars of debt from fees and interest that can last a year or even longer. Most payday borrowers have nine repeat loans per year and 400 percent interest, the group says.

Here is what's on consumer's minds today: Verizon Wireless, Match.com, Cash Yes, Let's see some ID and Expensive loan....

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iPhone Sales Jump 1.2% From February To May

So far, Apple's decision to begin selling an iPhone through Verizon Wireless appears to be paying off. Apple's share of the smartphone market soared 1.2 percent between February and May, according to data compiled by comScore, which follows trends in the U.S. mobile phone industry.

For the three month period ending in May, 234 million Americans ages 13 and older used mobile devices. Apple strengthened its position at number four with 8.7 percent share of mobile subscribers, up from 7.5 percent in February, when Verizon began selling the iPhone.

Prior to that time, the iPhone was available only on the AT&T network.

Samsung still leads

While Apple showed the most movement over the last three months, it has a lot of ground to cover before becoming the number one mobile phone on the market. Device manufacturer Samsung ranked as the top manufacturer with 24.8 percent of U.S. mobile subscribers, followed by LG with 21.1 percent share and Motorola with 15.1 percent share.

RIM, which makes the Blackberry, continued to lose marketshare, and is in fifth place with 8.1 percent of the market.

Android gains ground

As for mobile device platforms, Google's Android solidified its lead during the February to May period. According to comScore, 38.1 percent of mobile devices in use during that period run on the Android system, a 5.1 percent increase over February.

Apple's system was second with 26.6 percent of the market, an increase of 1.4 percent.

RIM was third with 24.7 percent marketshare, a loss of 4.2 percent of the market in just three months.

Microsoft was a distant fourth and still losing ground, at just 5.8 percent of the market.

In May, 69.5 percent of U.S. mobile subscribers used text messaging on their mobile device. Browsers were used by 39.8 percent of subscribers (up 1.5 percentage points), while downloaded applications were used by 38.6 percent (up 2.0 percentage points).

Accessing of social networking sites or blogs increased 1.8 percentage points to 28.6 percent of mobile subscribers. Game-playing was done by 26.9 percent of the mobile audience (up 2.3 percentage points), while 18.6 percent listened to music on their phones.

Apple's share of smartphone market has jumped since selling iPhone on Verizon Wireless...

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Consumers Form Personal Attachments To Smartphones, Study Finds

Just how attached are you to your smartphone? Not that much? Really?

Esther Swilley, who teaches marketing at Kansas State University, doesn't buy it for a minute. She says her research finds that when people lose their smartphones, they experience feelings of loss and hopelessness – almost as though a family pet had gone missing.

What's more, Swilley says these feelings are natural.

"The cellphone's no longer just a cellphone; it's become the way we communicate and a part of our life," Swilley said.

Mobile affinity

In one long-term study Swilley looked at the attitudes people have toward their mobile phone and how these attitudes are influenced by a user's relationship with their device. That attachment, called mobile affinity, depends on whether an owner views their cellphone or smartphone as a device that's more fun than it is functional or vice versa.

What Swilley discovered is that we have very personal relationship with our smartphones.

"People share other devices like computers, but cellphones are an interesting thing because we each have our own,” she said. “That individual ownership is a really big deal for people."

Swilley found that a majority of the participants in her study said they are attached to their phone because of its functionality as an entertainment device rather than as a tool that can communicate anytime and anywhere. So it comes to no surprise to Swilley that games are the most downloaded application for cellphones, according to app stores.

What is surprising to her is that study participants indicated their mobile phone allowed for little to no self-expression. This is odd because while mobile phone owners have said their phone is a part of themselves, it's not a way they express themselves, Swilley said.

That's entertainment

With the adoption of more smartphones and the introduction of apps, Swilley has noticed that for many owners, their phone's entertainment factor has become a source of pride and joy -- similar to that of a lovable new pet.

"It's sort of similar to when people had those Tamagotchi pets as children; cellphones are just the adult version of that," Swilley said. "People don't turn them off, are constantly playing with them, and want to show off the neat things the phone can do."

The concept for looking at consumer attitudes toward their phone stemmed from the time Swilley was employed at BellSouth Corporation, now a subsidiary of AT&T Inc.

"Every employee was given a BlackBerry,” she said. “Some of us weren't interested in having a pager, so the phones just sat there for some time. But when I left three years later, I almost cried because I had to give up my BlackBerry. It had become a part of me and I was attached to it. It was the way I communicated. Today when I look at people now with their cellphones I see the same attachment."

And then there's the story about President Obama, who refused to give up his Blackberry after he was sworn into office, even though it was considered a security vulnerability. The matter was resolved when the Secret Service provided heavy-duty encryption for the device. 

A researcher finds consumers have formed very strong bonds with their smartphones...

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Android Smartphones Have Highest Failure Rate, Blackberry the Lowest

A study finds what many smartphone addicts already know but may not want to admit: Androids have a much higher rate of hardware problems than their competitors.

The survey, conducted by British telecom consulting firm WDS, tracked 600,000 support calls over a 12-month period and found that of the support calls seeking help with Android handsets, 14% were for hardware issues.

Windows Phone 7 had a 9% rate for hardware-related support calls, Apple iPhone 8% and Research In Motion's BlackBerrys 3.7%.

The study found that instances of hardware faults varied between OEM deployments, with some brands showing a propensity to display failures, others keypad/button failures and some battery issues. Unfortunately, it didn't name the manufacturers associated with each type of failure.

Runaway success

“Android has been a runaway success and has been instrumental in bringing smartphone technology to the mass-market,” said Craig Rich, Chief Marketing Officer at WDS. “Its open nature, coupled with the greater availability of hardware components and a reduction in manufacturing costs has seen some manufacturers bring the price-point of Android smartphones down below US$100.”

“However, the Android ecosystem is not without its faults. Many of the factors that have led to Android’s success are driving varying levels of hardware quality into the market, in turn delivering an inconsistent customer experience,” Rich said.

Why the high Android failure rate? Isn't Android software made by the almighty Google? Yes, but as a semi-open-source platform, Android can be used by just about any manufacturer. WDS included 35 different Android manufacturers in its study.

The other major platforms all maintain tight control over their hardware. Windows Phone 7 licensed to only five manufacturers while both the iPhone and Blackberry have just one manufacturer each. In fact, both Apple and Blackberry-maker Research In Motion manufacture their own phones and thus control every step of the design and manufacturing process. 

A study finds what many smartphone addicts already know but may not want to admit: Androids have a much higher rate of hardware problems than their competi...

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FCC Seeks $12 Million in Fines Against Crammers

The Federal Communications Commission (FCC) is proposing fines totaling nearly $12 million against four companies that allegedly charged thousands of customers for long-distance services without authorization — a practice known as “cramming.”

The FCC says that Main Street Telephone, VoiceNet Telephone LLC, Cheap2Dial Telephone LLC and Norristown Telephone added “dial-around” long-distance services to customers' bills even though the customers may not have requested or used the servcie.

Dial-around services bypass a customer's regular long-distance carrier and usually require the customer to dial a “10-10” access code before placing a long-distance call.

The FCC's Enforcement Bureau said its investigation found that only one-tenth of one percent of the affected customers actually used the services for which they were charged over a period of months and sometimes years.

That's what happened to Mariann of Los Angeles.

“I was enrolled and billed for telephone long distance service for over a year without my knowledge,” she told ConsumerAffairs.com in July 2010. “The company refuses to issue a refund for services never utilized or authorized.”

The charges are often handled by an intermediary, like ILD Teleservices.

Bill of Grass Valley CA, said he noticed a $17.06 unauthorized charge on his At&T bill. He called VoiceNet telephone and said, “They claimed a Nicole submitted a web form authorizing the service. … Yep a charge for NOTHING. Never heard of her.”

Bill said he asked AT&T to flag his account to prohibit third-party billing but was told that was not an option.

It may be in the future. The FCC says it will be more aggressively enforcing rules banning cramming, a practice that has produced huge volumes of consumer complaints for decades but little action.

The Federal Communications Commission (FCC) is proposing fines totaling nearly $12 million against four companies that allegedly charged thousands of custo...

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What's On Your Mind? Verizon Wireless, Sears, Expedia

Got the latest smartphone? Jodi, of Centereach, N.Y., doesn't. She says she has just an ordinary “old” phone that allows her to talk and send text messages through Verizon Wireless.

“My plan is for $59 per month, however, with all of the hidden fees it always comes in around $83,” Jodi told ConsumerAffairs.com. “I still paid it early this month but they slapped me with a $167 bill for overage charges!”

Jodi said the company was willing to credit her $41, but she thinks that's not nearly enough. Our advice is for Jodi to take her bill to a Verizon Wireless store and ask a customer service rep to explain to her why her bill is so high. If she doesn't have an unlimited text package on her account, text messages can really add up.

Out in the cold

Randy, of Honolulu, Hi., is another consumer having problems with a new, high-tech refrigerator.

“Our Kenmore Elite Trio Refrigerator, model number 59676593600, is stuck in defrost mode for the third time,” Randy said. “Sears replaced the touchpad twice, the defrost sensor and thermostat sensor once. We're waiting the two weeks till they come and the fridge is starting to stink. Any diagnostic codes so as to not be at the BlueGuy’s mercy, and actually know what’s failed?”

If anyone has a clue, let us know and we'll pass it on. If we were in the market for a new fridge, we think we would look for a stripped-down model with no bells and whistles. That way, there are fewer things to go wrong.

Your word against theirs

If you use an online travel site to book your travel, you might save a few dollars. Then again, you might not.

“I booked a vacation package, a trip for two to Las Vegas,” Jason, of Campbell River, British Columbia, told ConsumerAffairs.com. “One week before we were to travel my wife broke her ankle. I called to cancel the trip. The agent at Expedia told me that I would get a refund for the hotel because I called early enough. I was told I would receive a credit with the airline for the flight. I asked the agent if there was a reference number for the call and was told I didn't need one -- everything was canceled.”

Two months later Jason said he still had not received the credit. He called back and said he was told that he no longer would get a refund because he did not cancel the trip.

“After being on hold for 45 minutes, then being disconnected, I called back,” he said. “The new agent could not find a record of my call and we started over. After explaining again I was put on hold for 30 minutes then disconnected. I eventually was able to speak to an agent in the escalation department.”

But not only was there no recorded transaction, Jason said the agent told him the notes in the file said he didn't cancel. It's worth remembering that most discounted travel is not fully refundable.  That's one of the reasons it's discounted.  Next time, Jason should  look into optional trip insurance, which can pay all or part of the cost if you have to cancel your plans.

Here is what's on consumer's minds today: Verizon Wireless, Sears, Expedia, Out in the cold, Your word against theirs and online travel sites....

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What's On Your Mind? Time Warner, Michigan Bulb Company, Sirius

Cable TV companies now offer phone service and phone companies now offer cable TV service. Different companies have different policies, but Time Warner's seems a bit odd, at least the way Darlene of Coronado, Calif., tells it.

“For the past several month’s Time Warner has blocked my international phone service saying that I am past due,” Darlene told ConsumerAffairs.com. I explained that my last statement was in May, and have not received another statement. The rep. said my statement would be mailed out next week, but I would not have service until it was paid.”

So, was Darlene's account past due? Darlene said she checked her account online and it shows a balance due of $376 on June 27.

“If my payment is not due until June 27, then why are my calls being blocked, Darlene asks?

If part of that $376 is past due from an earlier month, that could be the reason. Otherwise, this seems am odd policy.

Late Spring

We get lots of complaints about Michigan Bulb Company and other mail order plant retailers.

“Sent this company an order for tulips on May 9th,2011,” Shirley, of Streator, Ill., said. “My check was cashed on May 14,2011. Needless to say no bulbs! Can't reach them by phone, get a recording saying number is disconnected.”

Michigan Bulb Company is owned by Gardens Alive, of Lawrenceburg, Ind. Complaints about mail order garden centers include not receiving the order, as Shirley has noted, and receiving dead plants. Consumers would be much better off buying locally.

Put the debit card away

Consumers should avoid using their debit cards for online and telephone transactions. Too many mistakes can happen, with very unpleasant consequences. Dominick, of Islip Terrace, N.Y., has a lifetime subscription to Sirius Satellite Radio. Earlier this month he called and added a feature to allow him to listen on his smartphone. He gave his debit card to pay the $32.26 annual charge.

“The next day I checked my account and found out they billed me $906.75 for a second Lifetime subscription which I never agreed to,” Dominick told ConsumerAffairs.com. “This transaction put my account negative $500.00. With overdraft fees from bills being paid from this checking account I'm now negative $700.00.”

Dominick should ask Sirius to pull the audio recording of the transaction. If the company is not cooperative, he can sue them in small claims court, since the amount is less than $1,000. Often this is a good way to make a big company take you seriously.

Play hardball

A lot of subscription services won't budge when consumers feel they were unfairly charged and call for a refund. Marilyn, of Kinmount, Ontario, says two can play that game.

“Classmates charges my VISA without my permission,” Marilyn said. “I contacted my credit card company they told me to phone Classmates at 206-301-5900. I phoned them and they told me too bad. I told them I had already flagged the charge with the credit card company and was giving them a chance to fix this without me escalating it further.”

Marilyn said Classmates (now Memory Lane) then agreed to refund a portioin of the $439, but she said no.

“I said no, it will be the whole amount or I will be calling back my credit card company and escalating this,” she told ConsumerAffairs.com. “I was told my refund for the full $39 would be processed today. Lets hope so, so please follow the same formula and do not take no for an answer.”

Playing hardball with Classmates seemed to work for Marilyn. Maybe you should give it a try.

Here is what's on consumer's minds today: Time Warner, Michigan Bulb Company, Sirius, Late Spring, Put the debit card away and Play hardball....

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What's On Your Mind? Grasshopper, Target, Verizon, Vizio

Grasshopper advertises heavily on radio for its business telephone system, offering small businesses the opportunity to appear large, with toll-free numbers and voice mail. And while it may be a good fit for many independent operators, there may be a risk in making an external communications company your only link with the outside world.

“The telephone management system has been down nationwide over 24 hours now,” Ruth, of Palos Verdes, Calif., told ConsumerAffairs.com. “I am an equine veterinarian, and my business is effectively shut down. I have no office for people to come to. I make house calls after speaking with clients when they call...IF they can call!”

Publishing a backup number for clients, or an email address, might be a good idea.

Our mistake, but your loss

Here is yet another report from a consumer who says she was wrongly charged, but appears to be getting a run around while attempting to get her money back.

“I purchased a dress from Target and during the check out I scanned my bank card and entered my pin,” said Dana, of Clarksville, Tenn. “Then the cashier asked if I would swipe it again because she hit the wrong button. I swiped the card again entered my pin once again. I asked her if I was going to be charged twice now. She insisted that it only went through once.”

But of course, Dana said she was charged twice – clearly a mistake since it was the same day, same time, and same price.

“I was told that I would have to call a 800 number, Dana said. “I called and they told me they will investigate it and call me back. Weeks passed until I finally called them, and still nothing! A few more weeks pass and I finally receive a letter in the mail stating that there is nothing that they can do about it. Basically, saying that I am a liar.”

Mistakes happen and unfortunately, it's usually the consumer who ends up paying for it.

More transparency, please

Matthew, of Livermore, Calif., said he was shocked when he received a letter from a collection agency acting on behalf of Verizon.

“Really? $26? I spend $2000+ on their wireless service and they send my closed DSL account to collections for a $26.66 trailing balance without so much as the common courtesy of a phone call or even an email,” Matthew told ConsumerAffairs.com. “How about sending me a freaking bill?”

As Matthew explains it, he closed his DSL account in February but has continued to check his Verizon account online to make sure there were no trailing charges.

“Turns out, they don't update the 'Account Summary' with those charges,” he said. “Apparently, to Verizon, 'Paid in Full! Thank You!' means "you're account is past due and we're sending you to collections for a measly amount of money!"

Matthew is understandably peeved. Businesses that allow things like this to fall through the cracks end up alienating good customers.

No sound, or too much

There certainly are a lot of problems with flat screen TVs. If they aren't catching fire, they develop lines or dots on the screen. Marlena, of New York, N.Y., reports a problem with her 47 inch Vizio that we had not heard before.

“About two weeks after using it, the volume would disappear and I am not able to use any function on the TV,” Marlena said. “In order to reset the TV to working order you have to manually unplug and replug the TV into the electrical socket. This happens about once to twice a week.”

That's not all. She said occasionally there is a loud piercing sound from the set, resembling a fire alarm. She reports Vizio has told her they can't help her because their record of her purchase of the TV is not the same date as she bought it.

Here is what's on consumer's minds today: Grasshopper, Target, Verizon, Vizio, Our mistake, but your loss and More transparency, please....

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Facebook Weighs In Behind AT&T

Most consumer organizations are solidly againstAT&T'sproposed $39 billion takeover ofT-Mobile, citing the usual arguments about fewer players, less competition and so forth and a surprising number of news outlets have parroted the argument that T-Mobile is a low-cost provider.

But several high-tech companies that are heavily invested in wireless communications have come out in support of AT&T. Facebook has became the latest, joining Microsoft, Yahoo, Blackberry manufacturer Research In Motion and a number of Silicon Valley venture-capital firms.

Why? In a filing with theFederal Communications Commission(FCC), the firms say they buy AT&T's argument that the deal will strengthen its network and make wireless broadband available to more of the nation.

"The challenge of keeping pace with consumer demand and continuing to lead globally in wireless broadband services and products requires that we tackle the issue on multiple fronts," the companies said in their filing. (Google and Apple are staying mum, at least for the moment).

Consumer friendly?

T-Mobile, owned byDeutsche Telekom, is often portrayed by those who oppose the deal as a consumer-friendly, low-cost player that gives customers a fairer break than AT&T and its fellow behemoth, Verizon Wireless.

Perhaps, but judging from the nearly 2,000 complaints filed about T-Mobile with ConsumerAffairs.com in recent years, its customers encounter the same glitches, dropped calls and billing disputes as customers of the bigger carriers while making do with a network that exists mostly in major population centers.

"I was on a Family Plan for over 10 years with T-Mobile. ... I had poor reception throughout the years and was told that they were erecting more towers in the area and that would solve the 'no service' problem," said Lisa of Langhorne, Pa."We got the Android Mytouch 3G phones because we were told that we would have better reception and less dropped calls. That did not happen in fact the phones had poor reception and more dropped calls especially after an upgrade to their system in the winter of 2010. In fact our phones went dead and all information was lost."

Nor did T-Mobile do anything for Phoenix, who lives in a low-income section of Boston.

"On 11/15/10 I moved from one location in Jamaica Plain, MA to another about 1.5 miles away in the same city. I had been a T-Mobile customer for over 5 years without coverage issues at my former location. However, I immediately discovered I had low/no coverage at my new location," she told ConsumerAffairs.com. "I called T-Mobile customer service to complain and was told a tech would investigate.

"Two weeks later, I was told a service tech visited the neighborhood and reported that I live in a low coverage area, but T-Mobile has no plans to improve coverage and I would be held responsible for the early termination fees if I closed the account," she said.

Rural non-service

T-Mobile customers hoping to make calls in rural areas must hope that T-Mobile has negotiated a favorable deal with another carrier to provide "roaming" service, whereas AT&T and Verizon Wireless both provide service on their own network in most of the country. No. 3 carrierSprintis somewhere in between.

It's worth noting that no law prevents T-Mobile from building out its network nationwide, just as nothing prevents it from developing and deploying a robust 4g network that truly matches the speeds attained by AT&T, Verizon and Sprint.

The only thing stopping either of these things from happening is that T-Mobile's German masters choose not to spend the money to make them happen. Instead, the parent company is investing heavily in the European markets where it is a much stronger player than in the U.S.

T-Mobile has been steadily losing customers in the U.S. It lost 99,000 in the first quarter of 2011, more than triple the number it lost in the fourth quarter of 2010.

T-Mobile USA CEO Rene Obermann has told regulators and Congress that his company lacks the spectrum space to deploy a true 4g network and has said that Deutsche Telekom is unable to cough up the financial assets available to acquire more spectrum, even if it was available.

Running out the clock

Instead, T-Mobile continues to hold its U.S. customers to rigid contract terms, milking them for monthly fees while basically running out the clock on its American venture.

This is perhaps why AT&T's bid also wins the support of many rural interests, labor unions and the governors of several thinly-populated states.

Vast sections of the country, after all, are without broadband service of any kind – no cable, no FiOS or Uverse and no wireless broadband. This is a blow to the economic, educational and cultural hopes of these areas and a particularly cruel one given all the advantages that were promised rural areas back in the days when the "Information Superhighway" was being rapturously promoted.

Oh it was built, all right. But like a real superhighway, there's no off-ramp to the small towns, farms and ranches that dot flyover country.

Nevertheless, antitrust law being what it is, it's likely the deal will be held up or, at the very least, AT&T will be forced to dismantle some or all of its business to satisfy the regulators and litigators who for much of the history of telecommunications have had more power than the lowly consumer.

Knowledgeable consumer advocates are hoping for at least a partial return to the days when telecommunications firms had to commit to provide service to their entire service area, not just the parts of it that were most profitable.

If AT&T is willing to commit to that, consumers might actually be the winners.

Facebook Weighs In Behind AT&TJoins Microsoft, Yahoo, rural interests and organized labor in supporting T-Mobile takeover...

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Family Data Plans May Be Next Wireless Push

Remember when cell phones became so popular that it was almost impossible to make a call? It took awhile for the carriers to build out their networks to provide at least minimal service some of the time.

One way they paid for that was to start charging by the minute. Family plans helped spread the pain and made the metered pay plan more palatable.

Then smartphones came along and started burning up wireless broadband as well as talk channels. This is all great when it works but as more people discover that, the carriers find themselves again facing demand that quickly exceeds supply.

One solution would be to be spend even more money building ever bigger networks but with only so much spectrum to work with, there are limits that eventually exert themselves.

Besides, the problem (as the carriers see it) is not the occasional user who sends in his money each month and goes online or makes a call a few times a day. No, the problem is what carriers and the editorial page editors at the Wall Street Journal are now calling bandwidth hogs – consumers who actually spend a lot of time consuming the product they're paying for.

After all, the carriers have been selling bandwidth by its speed rather than quantity, the clear implication being that customer can watch videos and cruise the Web 24/7.

So we're back where we were a few decades ago. The carriers have created another monster. They're spend big bucks promoting wireless data and they're been so successful that the next goal is to stop people from using quite so much of it.

Verizon Wireless is said to be steeling itself for the transition, preparing to announce this summer that it will eliminate smartphone plans that allow unlimited wireless data, replacing them with tiered pricing that will force heavy users to pay more.

To soften the blow, the company will offer options like family plans for data, a Verizon Wireless executive told the Reuters Global Technology Summit.

We have individual minutes for individual users. Then we eventually got to what we call family share where everyone in the family shares the same minutes,” said Verizon Wireless Chief Financial Officer Fran Shammo.

Shammo said it would be a “logical progression” to have family plans that allow a family to share their bandwidth allocation among a number of devices – smartphones, tablets, laptops and so forth. But Shammo said there was no firm timetable for the transition.

Family Data Plans May Be Next Wireless Push Pooling plans may offset resistance to tiered pricing ...

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Indiana Do Not Call Law Now Covers Cell Phones

As more and more consumers – especially young consumers – avoid land line telephones and use only cell phones, it poses a dilemma for telemarketers. How can they sell things to these consumers?

In Indiana, at least, they may not be able to call them on their cell phones. The state has passed a new law allowing residents to register cell phone numbers on the state's Do Not Call List. The national Do Not Call list already allows you to register mobile numbers.

The measure, signed into law late last week, clarifies current state law by extending the protections of Indiana's telephone privacy laws to include cell phone numbers, prepaid wireless calling and Internet-enabled VOIP services.

"I want to thank the General Assembly for taking action to update the state's telephone privacy laws and the Governor for signing the bill," Indiana Attorney General Greg Zoeller said. "Extending the protections of the Do Not Call list for cell phones and VOIP phones will shield more Hoosiers from intrusive solicitors and potential scams."

Deadline today

In Indiana the Do Not Call list is updated four times a year and today happens to be the latest deadline. Phone numbers placed on the list by 11:59 PM (ET) May 17 will begin receiving benefits of the law starting July 1, 2011. Out of state area codes can also now be registered as long as the billing address is located in Indiana, which Zoeller emphasized is particularly relevant for out-of-state college students studying in Indiana.

"Thousands of students come to Indiana to attend college every year and only have a cell phone,” he said. “As long as their bills come to an Indiana mailing address, they can add their number to the list. This will reduce the number of unwanted marketing calls as well as text-based solicitations."

Currently more than 1.8 million phone numbers are registered on Indiana's Do Not Call list, however, it is estimated that one third of eligible phone numbers are not registered. Registering on the list not only reduces the number of telemarketing calls, it also helps to the attorney general's office investigate and prosecute those telemarketers who violate the law and scammers looking to defraud consumers over the phone.

No robo-calls

Indiana law also forbids the use of auto-dialers to deliver pre-recorded messages without a live operator obtaining consent to deliver the message. These calls are often referred to as “robo-calls."

Meanwhile, the Federal Trade Commission (FTC), which administers the national Do Not Call list, is asking the Federal Communications Commission (FCC) to hold companies responsible when telemarketers violate the Do Not Call law on their behalf.

In comments filed with the FCC, the FTC said the agency should not allow such sellers to escape liability from federal telemarketing laws designed to protect consumers and their privacy when others place telemarketing calls on their behalf.

“The Do Not Call Registry is important to the FTC, but is absolutely critical to consumers who want a stop to the telemarketing and robocalls that interrupt their dinner hour,” said FTC Chairman Jon Leibowitz. “We hope that the FCC acts quickly to resolve this issue.”

The State of Indiana has expanded its Do Not Call list law to include cell phone numbers....

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What's On Your Mind? ILD, Legal Helpers, T-Mobile

ILD Teleservices has been the source of numerous complaints over the years, accused of “cramming” consumers' telephone bills with charges for websites and other unordered services. Because of a provision of the Telecommunications Act, third party providers like ILD are allowed to bill consumers through their telephone companies.

In addition to complaining, Pamela, of Reno, Nev., took effective action.

“I saw a $15.95 charge and a $12.95 charge on my AT&T bill,” Pamela told ConsumerAffairs.com. “I went directly to the AT&T store for help.”

Pamela said the AT&T personnel contacted their billing department and reversed the charge. They also placed a lock on Pamela's account so it can't happen again. Good information to have if you get “crammed” in the future.

Nothing's settled

Brian of Riverside, Calif., says he had two credit cards whose interest doubled to 30 percent because he was a week late making a payment and nearly had to file bankruptcy.

“Then I was contacted by a representative of Legal Helpers/ Debt Resolution,” Brian said. “They told me how they would be able to help me with my situation. I absolutely believe that I was mislead. I did however agree to their phone prompts to start and I have paid them $400 plus for the first 3 months and then $329 a month since.”

Brian made a mistake by agreeing to the phone prompts even though he did not fully understand what he was agreeing to. Meanwhile, Legal Helpers is not only the source of similar complaints, debt settlement firms like it are increasingly coming under fire from law enforcement officials. In March, Illinois Attorney General Lisa Madigan filed a lawsuit, alleging Legal Helpers Debt Resolution LLC unlawfully charged consumers upfront fees for debt settlement services with promises to make them debt free. But, in fact, they never lowered the consumers’ debt and actually left them worse off financially.

The lawsuit alleges Legal Helpers Debt Resolution, based in Chicago, illegally charged fees upfront under a guise that attorneys, who are exempted from an upfront fee ban, were providing the debt settlement service to consumers, enabling them to charge the initial fees. In fact, Madigan alleges, attorneys with Legal Helpers Debt Resolution only served as a front to the business, and debt settlement service was contracted out to non-lawyer, third-party companies. It might be a good idea if Brian contacted someone in Madigan's office.

Mystery bill

Every once in a while you get a bill that you know is a mistake. Ignoring it, however, can have consequences for your credit score.

“I had T-Mobile service for two days last month before returning the product because it did not work. I then received a bill for $29.00 for a service I never used,” Scott, of Covina, Calif., told ConsumerAffairs.com. “To get this off my back I paid the amount.'

That should have been the end of it, but it wasn't.

“During the last week I been receiving calls from them asking me for my last name and social,” Scott said. “I told them I would not give them that info so they said they can't help me.”

Scott is correct to be careful about revealing sensitive information over the phone to someone whose identity really isn't known. Instead, he should take the copy of his bill to a T-Mobile store and ask store personnel to check his account to see where the problem is.

Burned up

There's hardly anything more predictable than trouble developing with a flat screen TV just as soon as it is out of warranty. Tammy of Stringtown, Okla., says the trouble began with her Philips six months out of warranty but she put up with it. Last week, she says, the TV actually caught fire. At that point, she says she fired off an email to Philips explaining exactly what happened. This is the reply she says she got.

“Thank you for taking the time to contact Philips about our product and your recent experience with it. We want you to know that our customers mean a great deal to us, and we take your feedback seriously. We regret any gap between our performance and your expectations of us.”

“What a joke,” Tammy told ConsumerAffairs.com. “This is the response I would expect if I had emailed to say my TV was making an odd noise, not that it CAUGHT ON FIRE. It is quite obvious that they are lacking in the customer service department and may not even take the time to read emails sent in.”

Tammy says she expected more from customer service. She says her negative view of Philips is based not so much on the fact that her TV caught fire, but on the email she received in response to her problem.

Here is what's on consumer's minds today: ILD, Legal Helpers, T-Mobile, Nothing's settled, Mystery bill and Burned up....

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New York to Probe AT&T/T-Mobile Deal

New York Attorney General Eric Schneiderman says he is launching a full-scale review of AT&T’s proposed acquisition of T-Mobile. The proposed merger would create the nation’s largest wireless company with a total of 130 million subscribers nationwide, opening the door to a near-duopoly shared by the merged firm and Verizon Wireless. 

"Cell phones are no longer a luxury for a few among us, but a basic necessity. The last thing New Yorkers need during these difficult economic times is to see cell phone prices rise," said Schneiderman. "Affordable wireless service and technology, including smart phones and next generation handheld devices, are the bridge to the digital broadband future. We want to ensure all New Yorkers benefit from these important innovations that improve lives.

T-Mobile, a subsidiary of Deutsche Telekom, is a provider of choice for millions of New Yorkers and currently has 34 million customers nationwide, making it the fourth-largest wireless company in the country.

Consumer advocates have expressed fears that the proposed merger would start a process of consolidation that would lead to two firms – AT&T and Verizon – controlling nearly 80% of wireless subscribers nationwide and dominating the U.S. wireless business. Many observers think that third-place Sprint, already struggling with high subscriber turnover, would be unlikely to survive in an AT&T/Verizon-dominated world.

Schneiderman said he will closely scrutinize AT&T's argument that the merger has the potential to produce some benefits, such as expanding the coverage of AT&T's next generation broadband wireless network to rural areas in upstate New York that are underserved and have poor wired broadband connectivity.

Supporters argue that the merger might improve broadband service for T-Mobile customers by fulfilling some of their spectrum needs through access to AT&T's advanced network. The Attorney General’s review will weigh the benefits to New Yorkers against the anti-competitive risks posed to them, Schneiderman said.

New York to Probe AT&T/T-Mobile Deal. Acquisition would create a “duopoly” that would dominate the airwaves...

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AT&T T-Mobile Merger Far From Done Deal

If you’re a customer of either AT&T or T-Mobile and wondering how the announced merger of the two wireless carriers will affect you, hold on a minute. This deal could easily come unraveled in Washington.

Late last week the Wall Street Journal raised the issue that a lot of people may have been thinking. How is the Federal Communications Commission (FCC) going to view a deal that reduces the number of wireless carriers in the U.S. while creating, by far, the nation’s largest mobile company?

It may view it with skepticism. The Journal quotes an FCC officials as saying the agency would not “just rubber stamp” the deal and that AT&T would “have a steep climb, to say the least.”

Anti-trust issues

A few blocks away from the FCC, lawyers at the U.S. Justice Department may have something to say about the proposed merger as well. In deals such as this, the Justice Department looks at ant-trust issues, to make sure the merger will not hurt competition. In markets where AT&T and T-Mobile are significant competitors, this could prove problematic.

If the deal is approved, 90 percent of the wireless business would be concentrated among just three companies – AT&T, Verizon and Sprint/Nextel. Of that, AT&T would have 43 percent of the business.

Will it be enough to derail the deal? Possibly, but AT&T is known in Washington for its lobbying power. The company says current customers of both companies will benefit from the union, because of expanded network coverage and additional spectrum.

Higher prices?

Critics of the deal, however, are likely to claim that the deal will result in higher prices for everyone. When the number of companies providing a service shrinks, costs to consumers almost always go up.

Another potential change for T-Mobile customers is the almost certain end to their unlimited data plan. T-Mobile currently has one, AT&T has moved to a tiered plan.

Lastly, there could be a consumer revolt among current T-Mobile customers. The blog eWeek reported over the weekend that anger and frustration is growing among some consumers. There is even an online site devoted to stopping the merger, where consumers can sign a petition against it.

The proposed merger of AT&T and T-Mobile must first pass scrutiny by Washington regulators....

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AT&T Introduces 'Glasses-Free' 3D Smartphone

Just one day after it announced its blockbuster deal to acquire T-Mobile, AT&T announced the launch of two new smartphones, including one model that it calls the first 3D phone sold in the U.S.

The LG Thrill 4G and the HTC HD7S joined the AT&T line-up today, as the carrier continues to offer a wider variety of devices, now that its once-exclusive iPhone is now available to Verizon Wireless subscribers.

AT&T says the LG Thrill 4G is the first U.S. smartphone that will feature a "glasses-free" 4.3-inch stereoscopic 3D display plus 4G speed capability. Beyond its 3D screen, the LG Thrill 4G features a dual-core, 1 GHz processor, and a 5-megapixel dual-camera that allows you to shoot and share high definition videos and images in 3D.

The HTC HD7S is another Windows Phone, this one with a 4.3-inch, WVGA, super LCD display, 1 GHz processor and 5-megapixel camera with dual-LED flash.

Exclusive

The iPhone may no longer be exclusive to AT&T, but the company says the LG Thrill 4G is, and will go on sale in AT&T stores later this year. It runs the first dual-core, dual-channel 1 GHz processor in the U.S. and is based on the Android 2.2 platform. It will allow users to shoot 3D video and 3D stills with the dual 5-megapixel stereoscopic camera. 

In addition to apps and games from Android Market, LG Thrill 4G will offer 3D content via the "LG 3D Space," which houses 3D games, video clips and images for quick, convenient access.  It will come preloaded with 16 GB of memory, 8 GB onboard plus an 8 GB MicroSD card.

New Windows phone

AT&T says the HTC HD7S will have the largest screen on a Windows Phone from AT&T and will include the latest version of Windows Phone software.  It will be powered by a 1 GHz processor and support more than 10,000 applications available for download or purchase from Windows Marketplace.

In addition, with the preloaded U-verse Mobile application, qualifying AT&T U-verse customers can download and watch TV shows on their Windows Phone.  Non-U-verse customers can subscribe to U-verse Mobile for $9.99 a month and choose from a broad selection of programming to watch on their Windows Phone. 

AT&T has introduced two new smartphone models....

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AT&T Buys T-Mobile, Leaving Sprint a Weak Third

AT&T has announced that it is buying T-Mobile for $39 billion, a deal that will create the largest cellular carrier in the country and leave Sprint, long expected to merge with T-Mobile, as a very distant third to AT&T and Verizon.

However, the deal is expected to face considerable scrutiny from regulators and consumer activists are likely to object that the merger will reduce competition and raise prices although, according to the U.S. Government Accountability Office, cellular subscription costs fell 50 percent between 1999 and 2009, a period in which there was considerable consolidation.

There are also likely to be doubts that Sprint would long survive as an independent competitor, which could mean that in short order the number of full-scale competitors would be reduced to two.

AT&T now has 95.5 million wireless subscribers while T-Mobile, owned by Deutsche-Telekom, has 33.7 million. Verizon has 93.2 million.

Big win

From a technical standpoint, the deal is a big win, since both companies operate on the GSM standard, which would provide a clear path for both T-Mobile and AT&T to more quickly roll out a new 4G broadband data standard, presumably using AT&T's forthcoming LTE (Long Term Evolution) system.

In an early bid to win regulators' favor, AT&T said it was committing to a significant expansion of 4G LTE deployment to 95 percent of the U.S. population, reaching an additional 46.5 million Americans beyond current plans – including rural communities and small towns. 

This helps achieve the Federal Communications Commission (FCC) and President Obama’s goals to connect “every part of America to the digital age,” AT&T said.

“This transaction represents a major commitment to strengthen and expand critical infrastructure for our nation’s future,” said Randall Stephenson, AT&T Chairman and CEO. "Mobile broadband networks drive economic opportunity everywhere, and they enable the expanding high-tech ecosystem that includes device makers, cloud and content providers, app developers, customers, and more.”

Low rates

T-Mobile has traditionally offered some of the lowest rates of the major cellular carriers, although its network was not as widely available as its three larger competitors, which made it an impactical choice for many consumers.

AT&T is expected to honor current T-Mobile contracts but it is likely that once those expire, T-Mobile customers may have to convert to AT&T’s higher rates. On the other hand, a more geographically robust network might reduce roaming charges or signal problems for consumers who travel in rural and other currently under-served areas.

That's not an argument consumer activists are likely to accept, however.

“Don’t believe the hype,” S. Derek Turner, research director of Free Press Research, a Washington think tank, told The New York times. “There is nothing about having less competition that will benefit wireless consumers. And if regulators approve this deal, they will further cement duopoly control over the wireless market by AT&T and Verizon.”

A surprise

The deal was a bolt from the blue for telecom industry observers. It had been a closely guarded secret since at least last December, when negotiations reportedly became more intense as speculation about a Sprint-T-Mobile merger grew.

AT&T Buys T-Mobile, Leaving Sprint a Weak Third. $39 billion deal was a bolt from the blue; AT&T promises expanded 4G LTE service....

Lawsuit Says Sprint Overcharging For Its 'Premium Data' Service

A class action lawsuit charges that Sprint has wrongly charged millions of customers a $10 per month “Premium Data Add-On” fee, even though the customers contract provides for “unlimited” data transfer at a fixed price.

The suit lists 25 separate data plans that promise “unlimited domestic web access,” unlimited domestic text and “all you can stream, browse email, chat watch and game on the Sprint network.”

But on June 4, 2010, when Sprint began selling its HTC EVO 4G mobile phone, it began charging the “Premium Data Add-On” fee of $10 per month to customers whose contracts already entitled them to unlimited data.

The suit charges that the “Premium Data Add-On” is nowhere defined in Sprint's terms and conditions and alleges that it is simple “a made-up term that Sprint created to disguise the fact that it was simply charging an additional fee for data services for which customers had already paid and which was already obligated to provide.”

While $10 may not mean much to an individual customer, it adds up quickly if you, like Sprint, have 42.8 million subscribers. The suit estimates that more than a million customers are being charged the new fee, translating to $120 million in new revenue for Sprint.

Plaintiff Gretha Wilkerson of Vallejo, Calif., said that she subscribes to the Sprint Everything Plus Data Share 3200 plan for her four lines. Wilkerson said that so far, she has been overcharged $35 in “Premium Data” charges.

The suit was filed in U.S. District Court in San Francisco.

Lawsuit Says Sprint Overcharging For Its 'Premium Data' Service. Customers whose contracts provide for "unlimited" data are being charged $10 extra per mon...

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Skype Skips Into AdLand

There may be no free lunch but Skype comes close. The Luxembourg-based Internet telephony company provides free Internet calls and ridiculously cheap calls from an Internet-based Skype account to a landline or cell phone just about anywhere on earth.

But fiscal reality eventually rears its handsome head in even the most idealistic venture and thus, with its initial public offering looming, Skype has announced it will begin running ads on its home page. The first advertisers to sign up with Skype include Groupon, Nokia, Universal Pictures, and Visa.

Skype says the ads may include audio or video but promises they won't pop up in the middle of calls.

“The user experience on Skype is always job number one. So, we’ve spent a lot of time working through the best way to show advertising in the Skype environment. We believe our daily sponsorship ad from one brand per day is valuable for premier advertisers, but doesn’t detract from the experience for our users,”  said Doug Bewsher, Chief Marketing Office for Skype.

“Many people log into Skype as part of their daily routine, just like they check Groupon," said Rob Solomon, president and COO of Groupon. "We look forward to leveraging Skype's new display advertising to connect Groupon to an even larger captive audience."

Skype's IPO is expected to be one of the biggest in the technology space since Google raised $1.67 billion in 2004. Some investors are nervous about the company's ability to turn a profit, though. Last year, Skype had a loss of about $7 million on revenue of $860 million.  “We are just taking our first steps in this space and we expect to test and learn a lot as we move forward.”

The company says it has 145 million connected users, but only 8.8 million of them are paying a monthly fee.

Skype Skips Into AdLand Internet telephony service adds ads to its nearly-free service...

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Android Pulls Ahead In Smartphone Race

There has been a lead-change in the ongoing battle for supremacy in the smartphone world, with Android pulling ahead of Research In Motion's (RIM) Blackberry, according to Nielsen Co.

However, the results may be open to interpretation.

"When it comes to consumer marketshare by operating system, Android (29%) appears to be pulling ahead of RIM Blackberry (27%) and Apple iOS (27%)," Nielsen said in a release. "But an analysis by manufacturer shows RIM and Apple to be the winners compared to other device makers since they are the only ones creating and selling smartphones with their respective operating systems. HTC follows with 12 percent of consumer smartphone owners having an HTC Android device and 7 percent owning an HTC device running a Microsoft OS. Ten percent of consumer smartphone owners had a Motorola Android device and one percent owned a Motorola device running a Microsoft OS."

Advantage, Android

Android has an advantage, say industry analysts, because the operating system is used by so many different manufacturers. Apple's operating system, on the other hand, is only available on the iPhone.

Another thing going for Adroid's operating system is demographics. When you analyze who are buying Android phones, it tends to be those in the 18-24 age group, one of the largest groups of mobile device consumers.

Android's gain in marketshare is also impressive when measured against Nielson's Summer 2010. At the time, Android had only a 19 percent market penetration, which had grown to 25 percent in January.

It's also good news for Verizon Wireless, which offered a large number of Android phones, at a time when it couldn't offer Apple's iPhone. Ironically, now that Verizon is selling the iPhone, industry speculation has suggested lackluster iPhone sales. AT&T, meawhile, recently began offering more Android phones, perhaps compensating for the loss of iPhone exclusivity.

The battle shows no sign of letting up, especially considering the stakes. In the last six months, Neilson observes that 47 percent of consumers who purchased a mobile phone selected a smartphone over a feature phone, capable only of voice and text communication.

Android has become the number one smartphone operating system, according to Nielsen....

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Network Shortcomings Plague T-Mobile

T-Mobile, firmly stuck in fourth place among U.S. wireless carriers, reported anemic financial results Friday, with analysts blaming the company's spotty network coverage and a growing scarcity of spectrum needed to handle streaming video and bandwidth-hungry smartphone apps.

The company said it lost 318,000 contract customers during the last quarter, replacing them with 295,000 less profitable prepaid customers.

The lack of an iPhone partnership has also stymied T-Mobile's efforts to regain momentum. It had a brief moment in the sun as the chosen carrier for Google's ill-fated Nexus One, a barely discernible blip on the cellosphere.

But the more pressing problem at the moment is what engineers sometimes call a lack of headroom: the carrier is bumping into the ceiling as it tries to provide enough bandwidth to satisfy the growing number of smartphone users.

It's not just a matter of adding more towers, not that there's anything very simple or inexpensive about that. T-Mobile, like other carriers, has only so many frequencies in its spectrum space. When all those frequencies are full, calls start being dropped, video snaps to a halt and web surfing stalls.

Like land, spectrum is a limited commodity. They're not making it anymore. So it T-Mobile is going to get more spectrum space, it's going to have to buy it from someone or team up with another carrier that has some excess capacity.

The most obvious answer would be a merger with Sprint, firmly stuck in third place. Put the two carriers together – along with the spectrum owned by wireless broadband provider Clearwire, which is 54% owned by Sprint – and you have overnight created a company that would be about the size of AT&T and Verizon Wireless.

There would be many technical, regulatory and business headaches associated with merging the two and neither company shows much desire to try it.

Ironically, T-Mobile's current 4G network, called HSPA+, runs at blazing speed when you can get a signal. But as it attracts more speed-hungry customers, HSPA+ contributes to the company's overall spectrum space problem by eating up precious bandwidth more quickly than ever.

It's sort of like opening up a two-lane country road to hordes of lead-footed supercar drivers. You quickly run out of asphalt.

What does all this mean to the consumer? It means it's more important than ever to remember that the gleaming smartphone you see at the cell phone store is only as good as the network it's on. Before signing a long-term contract, make sure there is a 30-day cancellation clause and be sure you understand its terms and conditions.   

Network Shortcomings Plague T-MobilToo much speed, too little spectrum stymie growth...

Malware Threat To Smartphones Rising

If you have a smartphone, you may be more vulnerable to viruses and malware than you think. After all, these devices are connecting to the Internet all day long, with little or no protection.

Malware attacks directed at mobile devices rose 46 percent in 2010, according to McAfee, a security software maker, who predicts the threat will grow as millions of consumers begin using smartphones and tablet computers.

Phones using the Android operating system are among the fastest growing segment of smartphones, so it's no surprise that much of the new malware is targeting that segment of the market. This week, the security software firm Sophos noted that a variant of the Geinimi bug is attacking Android phones with abandon.

Poses as app

The Trojan horse, known as Hong TouTou and ADRD, poses in Chinese third-party stores as legitimate programs. When users download the apps, they are really loading the Trojan.

"The official Android Market, run by Google, does not appear to be carrying the malicious apps -- but if you go 'off-road' and choose to install software on your smartphone from elsewhere on the net, then you could be putting your device at risk," writes Graham Cluley, one of Sophos's security bloggers.

Cluley says Android users who steer clear of third-party apps probably have less to fear, but those who don't could be endangering data and, potentially finances if they use their phone for banking.

Emulates clicks

The bug doesn't just collect information about you. It can also emulate clicks on certain search results. A hacker whose malware gets downloaded on thousands of phones can earn hefty commissions by creating the impression that mobile phone users are visiting particular Websites.

Lookout Mobile Security, which first reported the new variant this week, said it has already delivered an over-the-air update for its Android users to protect them against known instances of HongTouTou.

How to stay safe:

  • Only download apps from trusted sources, such as reputable app markets. Remember to look at the developer name, reviews and star ratings.
  • Always check the permissions an app requests. Use common sense to ensure that the permissions an app requests match the features the app provides.
  • Be alert for unusual behavior on your phone. This behavior could be a sign that your phone is infected. These behaviors may include unusual SMS or network activity.
  • Download a mobile security app for your phone that scans every app you download to ensure it's safe. Lookout users automatically receive protection against this Trojan.
  • As the number of malware exploits on smartphones increase, it is more important than ever to pay attention to what you're downloading, say the security experts at Lookout. Their advice? Stay alert and carefully review every app you

As more people use smartphones, more online threats emerge....

Verizon Wireless 'Get It Now' Plan Challenged in Class Action

A class action lawsuit against Verizon Wireless charges the company improperly charges consumers $9.99 per month for its “Get It Now' download service. The suit, filed by Sarah Groggin of Brooklyn, NY, alleges the charges are “unidentified, unwarranted and recurring” and seeks refunds and damages for all affected consumers in the United States.

It charges that Verizon imposes the charges, which appear on monthly bills under headings including “Get It Now,” “Get It Now Downloads” and “Data Usage Charges” without explanation and without reference to any particular subscription and no identification of the purported download.

“Verizon Wireless is no stranger to improper billing practices,” the suit alleges. It notes that on Oct. 28, 2010, the company agreed to pay $25 million to settle a federal investigation of “mystery fees” it charges millions of customers for data sessions they never intended to launch.

As part of that settlement, Verizon Wireless agreed to establish a “Data Charge Task Force” that would resolve data charge complaints and ensure that customer service employees were aware of any widespread data billing issues.

It also agreed to provide its customers with plain-language information about data charges through bill inserts, welcome letters, online bill messages and an online bill tutorial.

Nevertheless, the suit charges, Verizon Wireless improperly charges many of its customers for the “Get It Now” downloads, including those who have repeatedly asked to cancel the purported service and demanded refunds.

But instead, the suit alleges, Verizon Wireless “intentionally instituted billing and customer service practices designed to prevent customers from understanding what they are being charged for and avoiding such charges.”

$9.99 x 2

Groggin said she subscribes to Verizon's “Nationwide Talk 450” plan for $39.99 per month. In addition, she subscribers to a data plan entitled her to 25 megabytes of data download per billing cycle for $9.99 per month.

Groggin said she is also charged $9.99 per month for “Get It Now” downloads even though she has twice contacted Verizon Wireless and complained about the billing. On each occasion, she said she was refunded the $9.99, only to have it appear on subsequent bills.

So just what is “Get It Now?”

According to the company's website, “Get It Now is a technology and service that allows you to download and use applications on your Verizon Wireless Get It Now-enabled phone. For example, you can quickly and easily download ringtones, games, emails, directions, instant messages and more to your phone and use them right on your handset. It is a new enhancement to wireless technology.”

To download the various applications, Verizon Wireless customers use either airtime or megabyte usage charges. Most applications take about a minute or .24 megabytes to download.

The company says there is no monthly fee to use Get It Now. Instead, customers pay per application when they download it.

But the suit charges that it is exceedingly difficult for consumers to identity Get It Now charges. Downloads are billed as a data call to the number 777-000-0000. The only way to differentiate between a Get It Now session and a mobile web session, the company's website says, it to match the date of the airtime charge to the date of the download.

The suit charges that Groggin and others are routinely charged $9.99 per month without any explanation and without reference to any particular subscription or application purchase. It alleges that complaints about the practice appear on numerous consumer websites and social media and even on Verizon Wireless' own website.

“I just got the bill and charged $9.99 since last month. What's this?” said one complaint on the Verizon site. “I paid last month for no reason and it keeps charging me. What is that for? I never downloaded something.”

The suit charges that Verizon's action violates several laws and regulations, including the Federal Communications Commission (FCC) Truth-in-Billing Act, which provides that “charges contained on phone bills must be accompanies by a brief, clear, non-misleading description of the service or services rendered.”

The suit was filed by attorney Mark C. Rifkin of the New York City law firm Wolf Haldenstein Adler Freeman & Herz LLP.

Verizon Wireless 'Get It Now' Plan Challenged in Class Action. Suit charges that consumers are slapped with $9.99 monthly charge without documentation....

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Nokia And Microsoft Team Up

Nokia and Microsoft say they are forming a broad strategic partnership that would use their combined expertise to create what they called a new "global mobile ecosystem."

Nokia is the world's top provider of mobile phones, which has seen its market share shrink lately amid the growth in smartphone competition from Apple, HTC and Research In Motion (RIM). Microsoft is the software giant that has been seeking traction for its mobile OS platform, Windows Phone 7.

The two companies say they intend to jointly create market-leading mobile products and services designed to offer consumers, operators and developers unrivalled choice and opportunity. 

The two companies believe their dominance in their relative markets give them a distinct advantage. The partnership, they say, would create the opportunity for rapid time to market execution.  Additionally, Nokia and Microsoft say they plan to work together to integrate key assets and create completely new service offerings, while extending established products and services to new markets.

Under the proposed partnership:

  • Nokia would adopt Windows Phone as its principal smartphone strategy, innovating on top of the platform in areas such as imaging, where Nokia is a market leader.
  • Nokia would help drive the future of Windows Phone.  Nokia would contribute its expertise on hardware design, language support, and help bring Windows Phone to a larger range of price points, market segments and geographies.
  • Nokia and Microsoft would closely collaborate on joint marketing initiatives and a shared development roadmap to align on the future evolution of mobile products.
  • Bing would power Nokia's search services across Nokia devices and services, giving customers access to Bing's next generation search capabilities.  Microsoft adCenter would provide search advertising services on Nokia's line of devices and services.
  • Nokia Maps would be a core part of Microsoft's mapping services.   For example, Maps would be integrated with Microsoft's Bing search engine and adCenter advertising platform to form a unique local search and advertising experience
  • Nokia's extensive operator billing agreements would make it easier for consumers to purchase Nokia Windows Phone services in countries where credit-card use is low.
  • Microsoft development tools would be used to create applications to run on Nokia Windows Phones, allowing developers to easily leverage the ecosystem's global reach.
  • Nokia's content and application store would be integrated with Microsoft Marketplace for a more compelling consumer experience.

 Three-horse race

"Today, developers, operators and consumers want  compelling mobile products, which include not only the device, but the software, services, applications and customer support that make a great  experience," Stephen Elop, Nokia President and CEO, said at a joint news conference in London. "Nokia and Microsoft will combine our strengths to deliver an ecosystem with unrivalled global reach and scale. It's now a three-horse race."

"I am excited about this partnership with Nokia," said Steven A. Ballmer, Microsoft CEO. "Ecosystems thrive when fueled by speed, innovation and scale. The partnership announced today provides incredible scale, vast expertise in hardware and software innovation and a proven ability to execute."

PC Magazine calls the move a big win for Microsoft, pointing out that Windows Phone 7 has gone from afterthought to the number one platform for the number one mobile device manufacturer. The big loser, it says, is Nokia.

"This is a humiliating climbdown for Nokia, which basically admitted that it's been wasting a huge software R&D budget and that its OS engineers are incompetent," the magazine said in an online posting.

The largest mobile phone maker and largest software company are joining forces....

iPhone Suit Says AT&T Overcharges for Data Use

Just three weeks after Verizonannounced that it will carry the iPhone beginning in February, AT&T is dealt another blow as it faces a class action alleging that the carrier’s bills “systematically overstate the amount of data used on each data transaction involving an iPhone or iPad account,” and charge consumers for “phantom data traffic” that never existed in the first place.

The suit, filed in San Francisco, alleges that AT&T charges consumers for data transactions even if they disable their phones entirely. It compares the billing system to a “rigged gas pump charging you when you never even pulled your car into the station.”

Phantom data use

It is notoriously difficult to measure the amount of data a person uses in a single session. But lead plaintiff Patrick Hendricks got around the standard obstacles by hiring an independent consulting firm to manipulate the phone so that it didn’t receive any data at all. The firm turned off the phone, ensured that no applications or e-mail accounts were running, and then left it off for a full ten days.

When Hendricks received his bill, it showed that 2,292 kilobytes of data had been used during the subject period -- the equivalent of over 35 transactions.  

Overcharges for actual data use

The complaint also says that, for transactions which actually do take place, the carrier charges too much. According to the complaint, web traffic was typically overstated by between seven and 14 percent, although sometimes that figure reached as high as a whopping 300 percent.

“So, for example,” the complaint explains, “if an iPhone user downloads a 50 KB website, AT&T’s bill would typically overstate the traffic as 53.5 KB (a 7% overcharge) to as high as 150 KB (a 300% overcharge).”

Small overcharges add up

Although the overcharges have only a “modest effect” on a single consumer, they could make up a “significant portion” of AT&T’s data-derived revenue, the suit alleges.

“A customer cheated by a rigged gas pump may not notice the small fractions of a gallon missing from his tank,” the suit points out, “but the station owner can boost his revenues by repeating the trick again and again to overcharge a large number of customers by a little bit apiece. The same is true with respect to AT&T’s rigged data billings.”

The suit alleges breach of contract, unjust enrichment, and violation of California’s Unfair Competition Law. Hendricks is seeking compensatory and punitive damages, and an injunction preventing AT&T from continuing to overcharge consumers.

The suit is one of the few iPhone-related pieces of litigation that doesn’t target Apple itself. AT&T Mobility, LLC is the sole named defendant.

iPhone Suit Says AT&T Overcharges for Data UseCarrier also accused of billing for phantom data traffic...

Consumers Union Rankled By Changes In Wireless Plans

AT&T and Verizon have made some changes in their wireless plans and Consumers Union (CU) isn't happy about it. 

The nonprofit publisher of Consumer Reports has written the chief executives of the two firms and the head of the Federal Communications Commission (FCC), calling on the firms to alert their customers.

AT&T has made extensive changes to its text messaging plans and upgrade discount program, while Verizon has ended its upgrade discount program.

Consumer notice

In separate letters to AT&T CEO Randall Stephenson, Verizon CEO Daniel Mead, and FCC Chairman Julius Genachowski, CU policy counsel Parul P. Desai said the companies need to step up their efforts to inform consumers about the changes and the implications for their pocketbooks -- including any overage charges that may occur.

She said the companies should notify each customer affected by the changes individually and make all consumers aware of the specifics of the plans at the point of sale.

“In light of the tough economic times many consumers are facing, these companies need to provide greater transparency in, and disclosure of, these new plans and terms of service,” Desai said.

Texting changes

AT&T Wireless has dropped its $5/200 text messages-per-month plan and its $15/1500 text messages-per-month plan. The only options for consumers are $10 a month for 1000 messages or $20 a month for unlimited messages.

AT&T has also changed part of its upgrade discount program, which let customers upgrade their phone after two years and receive a discount of $50 or $100 off of the subsidized phone price. New customers no longer have this option, and current customers now have until July 23 to exercise this upgrade discount.

Discount plan changes

Verizon Wireless has discontinued its upgrade discount plan New Every Two, which allowed customers that were renewing their contracts to receive an additional discount on top of the subsidized price of the phone they purchased. Now current customers can redeem the New Every Two benefit just one more time, and they will not be eligible for it after that.

In her letter to the FCC, Desai noted that the agency is currently looking at cell phone "bill shock" and the need for greater transparency and disclosure of business practices. She urged the FCC to swiftly resolve these proceedings “so that all carriers would be required to appropriately notify consumers of rates, terms of service, overage charges and other relevant information.”

Consumers Union rankled by changes in wireless plans Group presses companies to step up effort to notify consumers ...

Woman Who Fell in Fountain While Texting Sues Mall

ConsumerAffairs.com recently reported on a lawsuit filed by Michael Dion, who fell between a subway train and a moving station platform, a mishap that broke his pelvis and lacerated his internal organs. Unsurprisingly, Dion, who was trapped for half an hour before workers were able to get him out, was angry enough to file a $15 million lawsuit against New York City.

Now a Pennsylvania woman is considering legal action for a different kind of fall -- and one that didn't cause nearly the injuries that Dion's did.

It all started innocently enough. Cathy Cruz Marrero was texting while walking through the Berkshire Mall in Reading, Pennsylvania when, apparently distracted, she tripped and fell into a fountain.

It was a harrowing scene.

“I saw the water coming at me, I could see the pennies and nickels at the bottom of the fountain and then I was in it,” Marrero told The Reading Eagle in an interview.

Mall security not “professional”

Rather than pick herself up, dry herself off, and perhaps chuckle at the ridiculousness of the situation, Marrero has hired a lawyer to investigate what she says is the mall's negligence for not coming to her aid. She says that the mall's security guards stood around laughing at her, rather than coming to her aid and making sure she wasn't injured.

“My issue is I don't think security was professional because they didn't send anyone to check on me until 20 minutes later and I had already left,” Cathy told the Eagle. “Instead of laughing, they should have said, 'Is she OK?' and been down there right away to check on me,” she said.

In a separate interview with ABC News, Marrero said she was “dumbfounded” by the guards' behavior.

“And all I kept saying was, 'I fell. I fell. I fell in the fountain. I fell in the fountain,'” she said.

A YouTube sensation

Adding to Marrero's outrage, video footage of the incident was leaked by a still-unknown person and has gone viral on YouTube, gathering over 1.5 million views so far. Merroro is signaling that she will pursue legal action against whoever took the video.

“We are troubled by the fact that anyone at the Berkshire Mall responsible for releasing this video would find humor in an employee injured on the premises,” Marrero's attorney, James Polyak, told MSNBC. “We intend to hold the appropriate persons responsible.”

But Marrero may have bigger fish to fry. According to CBS's The Early Show, Marrero is in the middle of a criminal case in which she is charged with five counts of felony theft. She allegedly charged $5,000 worth of purchases to a co-worker's credit card.

Poylak said that Marrero's criminal record, which also includes a hit-and-run conviction, has no connection to the incident at the Berkshire Mall.

“Her prior personal affairs have nothing to do with what happened to her at the Berkshire Mall and the video that has been posted,” Polyak told the Eagle.

Good advice

Meanwhile, Marrero has some plum advice for all you kids out there.

“Do not text and walk,” she helpfully instructed on Thursday's Good Morning America.

Woman Who Fell in Fountain While Walking Sues MallSays security guards should have come to her rescue...

Sprint Raising Data Fees for Smartphones

Faced with rising traffic on its network, Sprint Nextel is adding a $10 fee to its smartphoto data-service plans. Customers on existing contracts won't be affected.

"The charge will assist Sprint in offering simple and affordable unlimited plans for its customers while maintaining a wireless network able to meet the growing appetite for a richer mobile experience. Subscribers with smartphones will still receive the best value in wireless, including the Any Mobile, Anytime feature offered nationwide only by Sprint," the company said.

Sprint already charges a $10 fee for its 4G smartphones and will expand the fee to all of its smartphones at the end of January.

The new fee marks a change for Sprint, which has been trying to undercut its rivals to stem customer losses. Sprint's current "Everything Data" plan costs $79.99 a month, compared to $119.98 for a similar Verizon plan and T-Mobile's $99.99. AT&T no longer offers unlimited data plans.

Sprint says the price increase is needed to deal with increased traffic demands from smartphone users. A company spokesman said smartphone customers use 10 times the data of regular cellphone users.

Verizon Wireless may be next to impose new data fees, now that it will be selling its version of the Apple iPhone. The company says it is looking at its pricing options.

Sprint argued in a statement on its Web site that, even with the extra $10, its plans are simple and easy to understand.

While some of our competitors impose overage charges and complex plans, Sprint continues to provide a worry-free, unlimited data experience while on the Sprint network. This is responsible, sustainable and reflects our commitment to simplicity and value,”said Bob H. Johnson, president of Sprint’s consumer business. 

Read more about Sprint.

Sprint Raising Data Fees for Smartphones. All smartphone data plans get hit with new $10 fee....

Cell Phones and Winter Weather Don't Mix

Last week, readers of the tech blog MobileCrunch argued over a bizarre story of a Norwegian woman who claims her iPhone “exploded” when temperatures there dipped to -14 degrees Celsius (7 degrees Fahrenheit).

According to Swedish blog Feber, the unnamed woman claimed to be in her car, about to use her phone, when she discovered the entire device was cracked and broken. (Read the article with the help of Google Translate here.)

When she attempted to have the phone replaced under warranty, she was told by the employees at the Apple store she was ineligible for a free phone, since the warranty states the phone should not be used outside when the temperatures are below freezing or over 35 degrees Celsius (95 degrees Fahrenheit).

Fact or fiction?

So did it happen? It's hard to say.

Multiple tech blogs picked up on the story, but with varying details. MobileCrunch readers argued the story was bunk and the woman must have dropped her phone and lied about how it broke in an effort to get a free phone.

And while Apple’s iPhone warranty states repairs are not covered in the event of “damage caused by accident, abuse, misuse, liquid spill or submersion, flood, fire, earthquake or other external causes,” -- negative temperatures could possibly be included in that list -- there’s no specifications of just how hot or cold is "too hot" and "too cold."

Still, while the case of the exploding iPhone could simply be a new urban legend, the fact remains that extremely cold weather can effect the functionality of any electronic device. And with temperatures still frosty cold in much of the country, it’s important to keep cell phones from, ahem, freezing up this winter.

Consumer tips

Verizon Wireless, the soon-to-be additional carrier for the iPhone, has provided some handy cold-weather tips to for all cell phone users:

  • Keep your phone fully charged.  

Cold temperatures can run down the phone's battery charge more quickly.  Use a car charger to keep the phone's charge if you get stranded or stuck in traffic on icy or snowy roads.  Think about an extra battery as backup.

  • Handle your phone with care.  

The display screen can become brittle when exposed to cold temperatures for long periods of time.

  • Keep your phone in a warm place.

Avoid leaving it in an outside pocket or backpack or in the car overnight.  When outside in the cold weather, carry your phone in an inside jacket pocket, keeping it close to your body for warmth.

  • Accessorize.

Remember you can't dial or access the keyboard on a touch screen with gloves, so consider investing in a pair of finger flip gloves.

Cell Phones and Winter Weather Don't Mix Extreme cold can disable cell phones, or possibly make them "explode"...

Your Tweets Might Expose Where You Live

Microbloggers may think they're interacting in one big Twitterverse, but researchers at Carnegie Mellon University's School of Computer Science find that regional slang and dialects are as evident in tweets as they are in everyday conversations.

Postings on Twitter -- “tweets” -- reflect some well-known regionalisms, such as "y'all" (the South) and "yinz" (Pittsburgh), plus the usual regional divides in references to soda, pop and Coke.

Analyzing tweets

But Jacob Eisenstein, a post-doctoral fellow in CMU's Machine Learning Department, said the automated method he and his colleagues have developed for analyzing Twitter word use shows regional dialects appear to be evolving within social media.

In northern California, something that's cool is "koo" in tweets, while in southern California, it's "coo."

In many cities, something is "sumthin," but tweets in New York City favor "suttin."

While many of us might complain in tweets of being "very" tired, people in northern California tend to be "hella" tired, New Yorkers "deadass" tired and Angelenos are simply tired "af."

The "af" is an acronym that, like many others on Twitter, stands for a vulgarity. (Think the “f-word.“)

“LOL” is a commonly used acronym for "laughing out loud," but Twitterers in Washington, D.C., seem to have an affinity for the cruder LLS. (Think the “sh-word.”)

Eisenstein said some of this usage clearly is shaped by the 140-character limit of Twitter messages, but geography's influence also is apparent.

Tracking tweeters

The statistical model the CMU team used to recognize regional variation in word use and topics could predict the location of a microblogger in the continental United States with a median error of about 300 miles.

Studies of regional dialects traditionally have been based primarily on oral interviews, Eisenstein said, noting that written communication often is less reflective of regional influences because writing -- even in blogs -- tends to be formal and thus homogenized.

But Twitter offers a new way of studying regional lexicon, he explained, because tweets are informal and conversational. Furthermore, people who tweet using mobile phones have the option of geotagging their messages with GPS coordinates.

For this study, Eisenstein and his co-authors -- Eric P. Xing, associate professor of machine learning, Noah A. Smith, assistant professor in the Language Technologies Institute (LTI), and Brendan O'Connor, machine learning graduate student -- collected a week's worth of Twitter messages in March 2010, and selected geotagged messages from Twitter users who wrote at least 20 messages. That yielded a data base of 9,500 users and 380,000 messages.

Tracking vs. profiling

Though the researchers could pinpoint the users' locations using the geotags, they can only guess as to their profiles.

Eisenstein said it's reasonable to assume that people sending lots of tweets from mobile phones are younger than the average Twitter user and the topics discussed by these users seem to reflect that.

Automated analysis of Twitter message streams offers linguists an opportunity to watch regional dialects evolve in real time.

"It will be interesting to see what happens. Will 'suttin' remain a word we see primarily in New York City, or will it spread?" Eisenstein asked.

Eisenstein said it might be a mistake to assume the greater interconnectivity afforded by the Internet will necessarily result in more homogeneity in language since social circles maintained by sites like Twitter are often geographically focused.

Also, many people use the Internet to seek out like-minded people with similar interests, rather than expose themselves to a broader range of ideas and experiences.

Eisenstein will present the study on Jan. 8 at the Linguistic Society of America annual meeting in Pittsburgh. The paper is currently available online.

Your Tweets Might Expose Where You Live New study finds regional slang and dialects apparent in many Twitter messages...

Five Must-Sees At the Consumer Electronics Show

The 2011 Consumer Electronics Show (CES) opens today and the electronics editors at Consumer Reports (CR) have identified five product categories they're eager to see at this year's show.

"CES 2011 is less about revolution than evolution," said Paul Reynolds, Electronics Editor at Consumer Reports.  "We likely won't see any groundbreaking new product categories, but we'll see some significant leaps in some key technologies such as computers, smartphones, and 3-D TV."

Consumer Reports has identified the following five product areas that will have an impact this year on consumers.

  • TABLET COMPUTERS. Though other tablets started to appear in the marketplace toward the end of 2010, CR found most were disappointing compared with the Apple iPad. The magazine expects the iPad will get some real competition from tablets introduced this year at the show. For example, the Toshiba Tablet will offer many features that the current iPad doesn't, including a camera, a memory-card slot, and support for Flash video.
  • PASSIVE TECHNOLOGY FOR 3-D TV. Another one of Consumer Reports' anticipated product categories is 3-D TVs made for viewing with light, inexpensive passive glasses, as opposed to the bulky and costly active-shutter glasses they've needed until now. Vizio, LG, and other manufacturers will be showing these TVs.
  • NEW COLOR TECHNOLOGY FOR E-BOOK READERS. Though e-readers -- which played a large role at last year's CES -- probably won't be as thick on the ground this year, the editors are interested in seeing the latest versions of e-book readers that use technologies, such as Mirasol, that will eat up less battery power than existing color LCD e-book readers.
  • 4G PHONES. Consumer Reports expects Verizon, along with other carriers and manufacturers, will announce many new 4G phones, using faster networks than most current cell phones use. Sprint and HTC announced the EVO Shift 4G and Samsung is expected to announce a 4G phone.
  • CAR CONNECTIVITY. CR will also be looking at innovative car connectivity solutions, including ones that implement 4G, from manufacturers such as Ford and Audi.

Five Must-Sees At the Consumer Electronics Show Consumer Reports runs down the gadgets it expects will blow you away ...

iPhone Still Leads Smartphone Race

The race for the lead in smartphones remains very close, but Apple has a slight lead, according to the Nielsen Company.

When it comes to operating systems (OS) for smartphones, Apple's iPhone has 28.6 percent of the market, followed by the Research In Motion's (RIM) Blackberry OS at 26.1 percent and the Android OS at 25.8 percent.

On the move

Though it's currently in third place, Android has been quickly catching up. The Nielsen numbers show that the Android is the most popular OS among consumers who purchased a smartphone in the last six months, leading the field with a 40 percent marketshare.

But Apple's overall lead is all the more notable when you consider that it was achieved with one product -- the iPhone -- and with consumers on just one cellular network, AT&T.

RIM offers different Blackberry models on more than one carrier. The Android OS is used by Motorola, Samsung and several other manufacturers, meaning there is more product out there for consumers to buy.

Year of the smarthphone

The Nielsen numbers suggest 2010 was the year of the smartphone, with strong demand for the devices, especially late in the year. All three smartphone OS leaders -- Apple iOS, RIM Blackberry and Android -- are benefiting from strong demand for smartphones.

In November, 45 percent of recent acquirers chose a smartphone over a feature phone, used only for voice communications and texting.

While Android sales have momentum going into 2011, it remains to be seen what a long-anticipated iPhone for the Verizon network, the nation's largest, will mean for Apple sales. An analyst at Piper Jaffray says there's a 95 percent chance Apple will launch a Verizon iPhone in the next 12 months.

The battle for dominance in the smartphone world is essentially a tight, three-way race, with Apple in the lead....

10 Ways To Make Your Smartphone More Secure

If 2010 was the year of the smartphone, 2011 could be the year of dangerous malware that targets those devices.

Despite the huge sales of iPhones, Droids, Blackberries and others during the year, millions of consumers received new smartphones as Christmas gifts. All this creates a target-rich environment for hackers.

“This year people will be doing more with their phones than ever before,” said John Hering, CEO and founder of Lookout Mobile Security. “As millions of new smartphone users come online this holiday season, we want to give them some simple tips to stay safe.”

For anyone with a smartphone in the new year, Lookout Mobile Security created a quick list of tips to help smartphone owners stay safe:

1. Set a password.

One of the most common challenges for smartphone owners is losing the phone and all the personal data on it. Setting a strong password for your phone and enabling the screen auto-lock time to be five minutes is the simplest way to keep your personal information private during this busy season.

2. Download the updates for your phone.

Always take the extra time to download software updates. Often, they include patches to security flaws recently found in the software. Just like a desktop or laptop computer, staying up to date is your first line of defense from hackers and viruses.

3. Treat your phone like your PC.

As phones become more powerful and consumers do more with them, they become more attractive targets for malicious attacks. Protect yourself and your private data from malware, spyware and malicious apps by downloading a security app.

4. Use discretion when downloading apps.

One of the most exciting things to do with a new smartphone is explore all the great applications you can download onto it. As you begin to explore, make sure you download responsibly. Only download apps from sites you trust, check the app’s rating and read the reviews to make sure they’re widely used and respected.

5. Pay attention to the private data accessed by apps.

Applications have the capability to access a lot of information about you. When you install an app, take the time to read the data and personal information that it needs to access. Whether it is access to your location, your personal information or text messages, it should make sense that the application needs access to those capabilities.

 6. Download a “find your phone” app.

 No matter how diligent you are about keeping your phone on you at all times, you’re bound to lose it once, or it may even get stolen at some point. Download an app that helps you find your phone in case it is lost or stolen. Make sure you can remotely lock your phone if it is lost or stolen.

7. Exercise caution with links in SMS messages.

Smishing, or a combination of SMS texting and phishing, is when scammers send you a text to a malicious website or ask you to enter sensitive information. Don’t click on links in text messages or emails if you don’t know the sender or they look suspicious. Trust your instincts.

8. On Public WiFi, limit email, social networking and only window shop.

Public WiFi networks have become ubiquitous, but unfortunately securing the Websites you may access haven’t. Many Websites, email programs, instant messaging programs and social networking sites are not entirely safe to browse or access from a public WiFi network. Also, trying to limit your online shopping to “window shopping” on a public network.

9. Never enter your credit card information on a site that begins with only “http//”.

If a website ever asks you to enter your credit card information, you should automatically look to see if the web address begins with “https”. On unsecured networks, (those that have only have http://), a hacker could easily steal information like usernames, passwords and credit card numbers, which could lead to identity theft.

10. Enable a Wipe feature on your phone.

If you find yourself (or your phone) in a difficult situation, and you won’t be able to get your phone back, a Wipe application will clear all the data so your private information won’t fall into the wrong hands. If you can, try to download an app where you can wipe your SD card too.

A security firm offers advice to protect your smartphone from malware...

Cold Weather Tips For Your Mobile Phone

Extreme weather can be hard on sophisticated electronics devices, including your smartphone. So with winter placing much of the country in the deep freeze, are there things you should be doing to protect your mobile device?

Verizon Wireless has offered a few tips to help consumers use their wireless phones when it's cold outside. For starters, the carrier says, keep your phone fully charged.

Cold temperatures can run down the phone's battery charge more quickly.  Use a car charger to keep the phone's charge if you get stranded or stuck in traffic on icy or snowy roads.  Think about an extra battery as backup.

Handle your phone with extra care when the temperature falls.  The display screen can become brittle when exposed to cold temperatures for long periods of time. It could be more susceptible to cracking.

When you are outside for extended periods, keep your phone in a warm place. Avoid leaving it in an outside pocket or backpack or in the car overnight.  When outside in the cold weather, carry your phone in an inside jacket pocket, keeping it close to your body for warmth.

Remember you can't dial or access the keyboard on a touch screen with gloves, so consider adding finger flip gloves to your winter holiday wish list.

Droid apps

For users of Android phones, Verizon says it offers a number of free winter apps from Android Market, such as:

  • Winter Weather Outlooks; Allows you access to the National Weather Service Winter Weather Outlooks, so you'll know what kind of winter weather is headed your way.

  • How Cold Is It?A wallpaper that changes color depending on the outside temperature; deep red when it's hot and icy white when it's freezing.

  • ShoppeHUB; This app allows you to make secure purchases on cold weather gear, including winter clothing.  
  •  Coffee Recipes; Choose from more than 90 easy coffee recipes that will be sure to keep you warm.

Baby, it's cold outside, which is why you need to keep your mobile phone in a warm place....

Video Chatting is Becoming More Popular as it Gets Easier to Do

For the past year and a half, my wife and I got into the habit of video chatting with our son and grandson in Florida, thoroughly enjoying watching the toddler try to crawl through the screen of our laptop.

Video calling has been around awhile. Companies have been employing video conferencing and online video chatting for years. Then skype made it all financially possible for the rest of us to talk to a face through our computers.

And now with the new version of the iPhone and other mobile devices, more of us are able to look at to whom we're talking on a regular basis. It's still probably not a wise thing to do while you're driving, even if you have the speaker on. In fact, there are times when I prefer to just talk and listen without having to react visibly to the other person.

Still, video calling has started to become a way of life for millions of Americans either on their computers or over a mobile phone or through their big screen TVs.

According to a recent survey from the Pew Internet & American Life Project, one in five Internet users has tried video chat. And this technology barely existed just five years ago. Plus, most computer-based video calling is free.

Analysts are predicting a steep growth in video chatting, noting new developments such as video voice-mail messages, the ability to snap still-life photos during a video conversation and calls that can be received on your web-enabled 60-inch flat-screen TV.

Skype is still the dominant force in the video chat industry with Google, Apple, Yahoo and a host of smaller competitors biting off chunks. The mobile piece of the business alone totals nearly $100 million.

Right now, your choices are through your computer, your cell phone or your television.

If you use a computer, you'll need a service like Skype, which also requires software or an AOL account. The Skype video chat is free and voice calls run from a few cents to more than $2 a minute. Skype is the only service that lets up to five people chat together via video—and view each other in high-definition. You would need a special hi-def webcam however. A less well-known service is ooVoo.

Then there's iChat, which requires an account with either AOL Instant Messenger, which is free, or Apple's MobileMe, which costs $99 a year, plus software. iChat makes free video calls to computers. Text messages may incur charges. Apple's entry into the field doesn't let users make calls in high-def yet, but four people can chat together on a single call and share photos on the computer screen at the same time.

A recent entry to computer video chatting is Google voice and video chat. It requires a Gmail account and software, but the video chatting is free. Voice calls cost between 2 cents and $1 a minute. Google's video-chat function lets you e-mail and instant-message during your chat session. But a spokesperson says video calls work with only one person at a time and that the service isn't yet available in high-def.

The cost of webcams ranges from as little as $15 to $140 for high end high-def cameras. They also come built into many laptops.

You won't need a webcam for conducting video chats over cell phones, which have their cameras already built in. Just keep in mind that video calls tend to cost more than just voice calls unless you use an Internet hot spot. You can buy an app such as Fring, which provides free video chatting over Wi-Fi but also 3G. Unless your data plan is unlimited, stick to Wi-Fi hot spots to avoid carrier overage fees.

The most recent method of video chatting is over your big flat screen television but you need a web-enabled set. Skype has rolled out a service on a handful of Web-enabled TVs allowing callers to dial other Skype customers through their TV's remote, then talk through a supersized webcam that lets people sit as far as 12 feet away.

While chatting is free, and connections to callers on the other line is via not only the TV but also the computer but the technology is being built into newer sets from Samsung and Panasonic sets that run $1,200 to $7,000. You can find cheaper models from Vizio. You also need a special webcam will cost at least $150, since regular models can't plug into a television.

To save money, you could modify your existing TV by hooking it to a computer as if it was an external monitor and then use Skype to make the video call.

With video calling moving from the computer and the conference room and into the palm of your hand are you ready to see who's calling? ...

Your Web Browsing Habits Could Make You Vulnerable To Scammers

Think your web-browsing habits are only known to you and no one else? Think again.

According to new research from computer scientists at the University of California, San Diego, the Web surfing history saved in your Web browser can be accessed without your permission.

JavaScript code deployed by real websites and online advertising providers use browser vulnerabilities to determine which sites you have and have not visited.

The researchers documented JavaScript code secretly collecting browsing histories of Web users through "history sniffing" and sending that information across the network.

While history sniffing and its potential implications for privacy violation have been discussed and demonstrated, the new work provides the first empirical analysis of history sniffing on the real Web.

"Nobody knew if anyone on the Internet was using history sniffing to get at users' private browsing history. What we were able to show is that the answer is yes," said UC San Diego computer science professor Hovav Shacham.

The computer scientists from the UC San Diego Jacobs School of Engineering presented this work in October at the 2010 ACM Conference on Computer and Communications Security (CCS 2010) in a paper entitled, "An Empirical Study of Privacy-Violating Information Flows in JavaScript Web Applications."

History Sniffing

History sniffing takes place without your knowledge or permission and relies on the fact that browsers display links to sites you've visited differently than ones you haven't: by default, visited links are purple, unvisited links blue.

History sniffing JavaScript code running on a Web page checks to see if your browser displays links to specific URLs as blue or purple.

History sniffing can be used by website owners to learn which competitor sites visitors have or have not been to. History sniffing can also be deployed by advertising companies looking to build user profiles, or by online criminals collecting information for future phishing attacks.

Learning what banking site you visit, for example, suggests which fake banking page to serve up during a phishing attack aimed at collecting your bank account log-in information.

"JavaScript is a great thing, it allows things like Gmail and Google Maps and a whole bunch of Web 2.0 applications; but it also opens up a lot of security vulnerabilities. We want to let the broad public know that history sniffing is possible, it actually happens out there, and that there are a lot of people vulnerable to this attack," said UC San Diego computer science professor Sorin Lerner.

The latest versions of Firefox, Chrome, and Safari now block the history sniffing attacks the computer scientists monitored.

Internet Explorer however, does not currently defend against history sniffing.

In addition, anyone using anything but the latest versions of the patched browsers is also vulnerable.

Sniffing out History Sniffing

"We built a dynamic data flow engine for JavaScript to track history sniffing in the wild. I don't know of any other practical tool that can be used to do this kind of extensive study," said Dongseok Jang, the UC San Diego computer science Ph.D. student who developed the JavaScript monitoring technology.

The computer scientists looked for history sniffing on the front pages of the top 50,000 websites, according to Alexa global website rankings.

Their history-sniffing detection tool analyzed the JavaScript running on the page to identify and tag all instances where the browser history is being checked. The way the system tagged each of these potential history tracking events can be compared to the ink or paint packets that banks add to bags of money being stolen.

"As soon as a JavaScript tries to look at the color of a link, we immediately put 'paint' on that. Some sites collected that information but never sent it over the network, so there was all this 'paint' inside the browser. But in other cases, we observed 'paint' being sent over the network, indicating that history sniffing is going on," said Lerner.

The computer scientists only considered it history sniffing when the browser history information was sent over the network to a server.

They found that 485 of the top 50,000 sites inspect style properties that can be used to infer the browser's history. Out of 485 sites, 63 transferred the browser's history to the network.

"We confirmed that 46 of them are actually doing history sniffing, one of these sites being in the Alexa global top 100," the UC San Diego computer scientists write in the CCS 2010 paper.

In some cases, the websites created their own history sniffing systems. In other cases, advertisements served by outside companies contained JavaScript code performing the history sniffing.

History Sniffing in Perspective

The computer scientists say that history sniffing does not pose as great a risk to your privacy or identity as malicious software programs (malware) that can steal your banking information or your entire Facebook profile.

But, according to Shacham, "history sniffing is unusual in effectively allowing any site you visit to learn about your browsing habits on any other site, regardless if the two sites have any business relationship."

"I think people who have updated or switched browsers should now worry about things other than history sniffing, like keeping their Flash plug-in up to date so they don't get exploited. But that doesn't mean that the companies that have engaged in history sniffing for the currently 60 percent of the user population that is vulnerable to it should get a free pass," said Shacham.

Your Web Browsing Habits Could Make You Vulnerable To Scammers Study finds many popular sites use "history sniffing" to see which links users click on...

4G Cell Phone May Not Be a Good Investment

When it comes to internet data transmission, speed wins, which is why you can't watch a commercial television program without seeing an ad for a new 4G phone. Sprint was first with its ad showing dominoes falling as it unveiled the new improved faster 4G mobile phone with the only 4G network on the planet.

Well guess what. According to a report on CNN, written by David Goldman, 4G is a myth. It doesn't exist except as a concept that may one day be available in the future.

So then what are these phone companies talking about? There are 4G ads from T-Mobile and Verizon all claiming to be even faster than Sprint's 4G network.

The International Telecommunication Union is responsible for setting global wireless standards and it has determined last month that 4G is defined as a network capable of download speeds of 100 megabits per second (Mbps). For the rest of us that means it's fast enough to download an average high-definition movie in about three minutes.

Well guess what. Sprint, T-Mobile and Verizon don't even come close with their so-called 4G phones. Sprint, which was the first to launch a network it called 4G, could only transmit data somewhere between 3 and 10 Mbps. Then, T-Mobile launched its 4G network with speeds up to 12 Mbps. And Verizon plans to launch its 4G network any day now but it's not going to be any faster than T-Mobile's.

So with speeds barely reaching one tenth the speed of a real 4G, how do they get away with advertising 4G? Where's the Federal Trade Commission on this? Or would it be the FCC?

Maybe that's the problem. No one knows who's supposed to be watching over this stuff. We need a gadget czar to protect us unwitting techno-illiterates from getting taken.

So called industry experts don't know any better either. The best they can come up with is that it's a PR issue. What's that supposed to mean? What it really is, is a scam.

The wireless carriers have basically showed complete disregard for reality and have decided among themselves that 4G will be whatever they want it to be as long as it's faster than 3G which only offers speeds up to 1.5 Mbps.

Basically Sprint and Verizon have new, faster networks that are faster than 3G but technically are not 4G. Meanwhile, T-Mobile has a network that is actually based on 3G technology but refurbished to give it extra speed.

Apple gets the prize for causing the most confusion. It calls its new iPhone the iPhone 4, but it's a 3G phone. What's up with that?

The ads tout the new 4G phone as faster than any 3G phone out there but some are questioning if 4G even exists ...

What You Need to Know about Smart Phone Apps before You Install Them

Did you ever wonder where the term "killer app came from? At one time it meant an application so ingenious it killed the competition. Today, however with numerous viruses, spyware and malware infecting our gadgets, the term "killer App could take on a more negative connotation such as "that app just killed my cell phone."

With the advent of the iPhone and android, apps have become as common as texting in today's mobile world. An estimated five billion Apps have been downloaded to iPhones alone. And the Gartner research group says the average smart phone user downloads nine apps a week.

There are more than 225,000 apps in the App Store and Google's Android operating system has more than 80,000. It's a $7 billion market and it's less than three years old.

What you may not be aware of is that App developers track everything you do. They not only know all about you, but they know how you use their apps as well. "So what?" you might say. Well consider this. The app you just installed involves banking. What you thought was a legitimate nifty piece of software is actually something a malicious developer created to gain access to your account details.

John Hering is CEO of a mobile-security company called Lookout. He says Google, Apple and other vendors know which apps you bought, which you use and which you have erased from your phone. Developers and the analytics companies they employ access much more detailed data about how you use the app.

Peter Farago, VP of marketing at analytics firm Flurry, adds that they can see, for example, how often and for how long you played a game and everything you did in it. He says that all this data is invaluable to developers, who use it to improve their apps. They can also use it to build audience profiles in order to help attract ad dollars. Advertisers may be looking for gaming fans, for example, and want to target ads to people who spend lots of time using particular titles—information app developers then share with the middlemen who sell ads.

All the data that's tied to your smartphone gets circulated through a virtual system of companies. Jared Kaprove, former domestic-surveillance counsel with the Electronic Privacy Information Center, says there are no rules about what they can do with that data beyond some regulations about when it can be turned over to the government. Moreover, many of these companies have no policies for using and storing your data. That data can easily be stolen or misplaced, which can happen even at large corporations with good data-security practices.

 Kaprove adds that people aren't aware of how their data gets used and how valuable it is. But fearing consumer concern over privacy issues, the industry is trying to be open about its use of data and allows users to opt out of having theirs collected, according to Kaprove.

Some developers don't even bother creating any useful content. They sit back and let their users do it for them. It's called crowdsourcing. For example, the app called Yelp offers free restaurant reviews. But their reviews are generated entirely by users of the app.

We're apt to download all kinds of apps without even thinking about security and that's a mistake. Anytime you download something onto your phone, you're taking a risk that it might include malware, spyware or a virus. Anyone of them is harmful. According to Smart Money, one game app hijacked Windows mobile phones and used them to place calls to Somalia, running up hundreds of dollars in phone bills.

Hering says the problem is only getting worse. His December 2009 surveys found there were four pieces of malware for every 100 smartphones. By May of this year that number it had jumped to nine.

For a development firm to be profitable it must get its offerings into Apple's App Store. An estimated two-thirds of all app downloads for smartphones are made from that store. It's easy to use, and consumers feel safe because all apps have been reviewed and checked for malware or spyware.

Check out that APP before you install it to make sure you're not getting more than you were hoping for such as viruses and malware...

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'New Password' Phishing Scam Email Targets Facebook Users

If you receive an email claiming to be from Facebook Support, telling you your password has been changed and the only way to see your new one is to download an attached .zip file, DO NOT download the file. It's yet another Facebook phishing scam.

The email has been arriving in Facebook users' inboxes this week. The subject line and content of the email vary slightly, perhaps in the hopes of throwing off as many unsuspecting users as possible.

The subject line reads: "Facebook Service. Your password is changed. ID510"

The body of the email reads:

"Dear client!
A spam is sent from your Facebook account. Your password has been changed for safety.

Information regarding your account and a new password is attached to the letter.

Read this information thoroughly and change the password to a complicated one.

Thank you for your attention,
Facebook Service."

In our email, the .zip file is called "Facebook_document_Nr0845.zip" although it could be named something slightly different in other emails.

But whatever it's called, that attachment is not your new password. It's a Trojan horse virus.

Graham Cluley of Sophos Security thinks hackers could be taking advantage of a recent Facebook bug that inadvertently disabled hundreds of valid accounts earlier this week.

"Reportedly many of the complaints against Facebook users were that they were using an 'inauthentic' name, and they were asked to upload a government-issued ID (such as a passport), ensuring that their full name, date of birth, and photograph were clear," said Cluley.

"You can understand why many Facebook users would be nervous at the prospect of doing such a thing, especially when their Facebook account had not committed any breach of the social networking site's terms and conditions."

The gaffe, according to Facebook was an attempt to weed out spambot profiles. Since most spambot profiles typically contain pictures of sexy women and are "friends" with mostly men, many real women with valid profiles got locked out, too.

Facebook claims to have fixed the problem, but as late as yesterday evening, complaints about being locked out of the social networking site were coming in to ConsumerAffairs.com.

This is not the first password phishing scam showing up in Facebook users' emails.

Earlier this year, CNET.com reported of a similar scam email making the rounds, also containing a .zip file the user was urged to download.

The attachment contained a password stealing virus that targeted Windows computers and had the ability to access any username and password combination used on the computer, not just the login credentials for Facebook.

New Password Phishing Scam Email Targeting Facebook Users Email claims attached file contains "new password" but actually contains info-stealing Trojan...

No-Contract Cell Phones May Be Growing Trend

A constant source of irritation for cell phone customers is the two-year contract, and a hefty early termination fee if you break it.

So perhaps it's not surprising that a new survey of cell phone customers suggests one in five consumers with contract-based service - an estimated 24.6 million American adults - is likely to switch in early 2011 to less expensive unlimited prepaid wireless service with no early-cancellation penalty.  

Nearly one in 10 additional contract-based cell phone users said they would consider switching if they were not currently subject to an early-cancellation penalty, according to the first annual"Net10 Prepaid Wireless Consumer Trends National Poll"conducted by Infogroup/ORC for the independent New Millennium Research Council (NMRC), a policy and market research organization.

InMarch 2009, NMRC forecast an imminent shift by cell phone consumers from more expensive contract-based cell phone service with often hefty cancellation penalties to less expensive no-contract prepaid service.   In March of this year, NMRC reported that - for the first quarter ever - the number of new prepaid wireless phone customers in U.S. eclipsed the number of new contract-based phone customers during the final three months of 2009.

Growing interest

The survey found that overall, roughly half (47 percent) of U.S. cell phone users with contract-based service - an estimated 57.8 million consumers - are "very likely" (23 percent) or "somewhat likely" (24 percent) to switch to "a no-contract or prepaid phone" when "your cell phone early-cancellation penalty period ends and you can switch at no cost."  

Among U.S. cell phone consumers with contract-based service who say they are unlikely to switch to no-contract/prepaid service in the next six months well over half (56 percent) are "very or somewhat open to switching to a no-contract or prepaid cell planat some point in the future, but aren't planning to do so now."  Fewer than two in five contract-based phone users (38 percent) indicated they "don't see yourselfeverswitching to a no-contract or prepaid cell phone."

The top four reasons cited for U.S. consumers to switch to a no-contract/prepaid cell phone (including "major" or "somewhat" of an impact): 68 percent "needed or wanted to cut cell phone bill costs"; 58 percent were "paying too much for a Smartphone with features you didn't need or use"; 49 percent were "unhappy with (an) early-cancellation penalty for contract-based phone service"; and 48 percent cited the "recent availability of unlimited talk, text, Web and email access on no-contract basis for about$50a month."

"With millions of recession-weary consumers looking to trim even more fat from their household budgets, 2011 is shaping up to be the Year of the Prepaid Cell Phone Consumer,” said Sam Simon, senior fellow, New Millennium Research Council. "Even without the need to pinch pennies during the current economic downturn, consumers are clearly fed up with the high prices of contract-based cell phone service and the gouging that goes on with early-termination fees.   We were the first to forecast a big shift to no-contract/prepaid cell phone service by U.S. consumers, but we may have actually underestimated just how quickly this trend would catch on"  

Should you switch?

Prepaid plans — also called pay-as-you-go plans — allow you to purchase minutes in advance, as you need them. There is no contract, credit check or deposit, and most plans won't make you pay an activation fee.

Prepaid wireless isn't for everyone, especially if you're a heavy wireless user or want certain types of phones. However, you might consider going prepaid if:

  • You want to budget your expenses

  • You or your teen need a limited-use phone 

  • You need a phone only for emergencies 

  • You have bad credit 

  • You want to test-drive the carrier before signing a contracted plan.

Just because you don't sign a contract doesn't mean that choosing service can't be confusing. You still have to do your homework, and do it well.

What to consider

There is nothing wrong with shopping based on the type of phone or the per-minute rate, but none of that matters if the service doesn't work in your area. Start with checking the coverage map, but understand that it's only a "general information” guide and nowhere near perfect.

Just as with a postpaid plan, a cell phone is basically a small radio. Weather, terrain, and buildings can play havoc with the quality of service. A phone can work fine on one block but not the next.

Until you know the service works well where you need it, you're typically better off by starting with the minimum amount of minutes needed to get the service off the ground.

Options for prepaid service have increased in recent years. Discount providers like Tracphone pioneered the concept, but left many customers dissatisfied. Recently major carriers like Verizon and Virgin Mobile have also begun offering a pay-as-you-go alternative.

Earlier this year Wal-Mart began offering a "post-paid" cell phone market with a $45-per-month, unlimited talk/texting plan that it says could save a family of three up to $1,200 per year.

Since the beginning of cell phones, providers have locked customers into long-term contracts, but a new survey suggests that trend is shifting....

Verizon Pays Up To Settle ‘Mystery Charges’

Verizon is writing a very big check.

In a Federal Communications Commission consent decree, the telecommunications giant was fined a record $25 million and agreed to refund $52.8 million to customers who found small "mystery charges" on their wireless bills.

The federal regulator found that Verizon may have overcharged as many as 15 million wireless customers for its pay-as-you-go data plans. The extra charges were the result of unauthorized data transfers from applications.

"Verizon Wireless works very hard to simplify the wireless experience for customers and to ensure that customer bills are accurate," the company said in a statement. "Nonetheless, internal billing processes can be complex and, in this case, we made inadvertent billing mistakes. We accept responsibility for those errors, and apologize to our customers who received accidental data charges on their bills."

10-month investigation

The agreement wraps up a nearly year-long probe into a series of $1.99 per megabyte charges that showed up on bills of Verizon customers who had not subscribed to a data plan. The FCC began looking into the matter in response to consumer complaints.

"Today's settlement requires Verizon Wireless to make meaningful business reforms, prevent future overcharges, and provide consumers clear, easy-to-understand information about their choices," said Michele Ellison, chief of the FCC's enforcement bureau.

Verizon said it is issuing credits and refunds on its own initiative and "because it is the right thing to do for our customers."

"Fixing this for our customers has been our aim since last year, as we stated publicly at that time," the company said.

Verizon had previously announced that it would reimburse about 15 million current and former customers who may have been mistakenly billed. It said it would also will provide targeted information about data usage and tracking to new and existing customers, in both English and Spanish; establish a special internal team to track, identify and address customer data usage complaints; and provide additional training on data charge and credit issues to all of our customer-facing customer care employees.

Who gets a refund?

Who is eligible for a refund? Verizon wireless customers who do not have data plans and who pay for data usage on a per megabyte basis. Verizon said it is currently notifying eligible current and former customers that it is applying credits to their accounts or sending refunds in October and November.

Current customers will be notified in upcoming bills; former customers will receive a letter and refund check in the mail.

Verizon Wireless will pay a record fine and make refunds to clear up complaints about 'mystery charges' appearing on consumers' bills....

Consumer Reports: One In Five Hit By Cellular Bill Shock

What are your chances of getting zapped by cellular bill shock, an unexpectedly high monthly bill often resulting from voice, text, or data overages?

A new Consumer Reports survey conducted just last month found that, in the past 12 months, a whopping one in five CR Online subscribers received a bill that was significantly higher than they expected.

Doesn't add up

That figure is at odds with what big cell carriers said when the magazine reported about this issue only last May -- before CR had its own survey data. "I can tell you that it's a very, very small percentage," Nancy Stark, a Verizon spokeswoman, told Consumer Reports. "It's a very, very, very low percentage," said Mark Siegel, an AT&T spokesman.

Also, a Federal Communications Commission (FCC) survey discovered a smaller incidence than was found among CR readers: Just one person in six is ever bill-shocked, according to the FCC survey. The surprise bills for a third of the FCC group were at least $50, while they were $100 or more for 23 percent.

Corrective action

Now the FCC is proposing that carriers be required to send customers an alert before they run up an overage tab - something carriers oppose, according to The Wall Street Journal. AT&T and Verizon Wireless did not immediately respond to requests for comment.

Consumers Union (CU), the publisher of Consumer Reports, supports the FCC proposal. "People should not be blindsided by these surprise charges on their bill," said Ellen Bloom, senior director of federal policy and Consumers Union's Washington, D.C., office, after the FCC's announcement of its proposal. "We think that's wrong, and we are worried that the problem is getting worse."

Bloom says that at a minimum, CU supports providing all consumers with free and timely "usage alerts." Consumers should know when they are getting close to a specified limit on data service, or they are about to run up steep roaming charges. "We also think it is critical for consumers to know how much they will be charged for going over their allotted time," said Bloom.

Nothing new

Cell phone bill shock has a long and ugly history. Back in 2005, Ed of Houston told ConsumerAffairs.com that his 68-year-old mother received a warranty replacement phone, from Cingular Wireless, for her defective Motorola phone. "After using the phone for a little over a month, she received her bill. It was for a whopping GRAND! $1000! ONE THOUSAND DOLLARS!" Her phone bill is usually somewhere around $80.

Ed says he learned she was being charged because her new Motorola flip phone did not hang up her calls when she closed it like her old Motorola flip phone. Apparently the phone also did not naturally hang up after either caller terminated the conversation. "Needless to say," Ed concludes, "she wound up being charged far more than the time she actually spent talking -- to the tune of some $900."

Howard of Madison, WI, wrote us in 2008 that "Since Oct 2007, I have received cell phone bills for more than $1000.00 a month from Sprint when my normal bill should be roughly 70.00 per month. I have called repeatedly and gotten promises that there would be credits and that they would correct the problems that caused my issues. (They are charging me for Text messaging and Data usage when I have unlimited for both!)"

But, he notes, "I have spent more than $4000 in cell phone bills since Oct 2007, and Sprint has done little to merely credit me for text usage and data usage. These are the only two elements that are being impacted, but both have cost me dearly."

FCC rules

As part of its announcement, the FCC suggested the following rules for wireless carriers to help prevent their customers from experiencing bill shock:

Over-the-Limit Alerts: Consumers that have limited bundles of voice, text, and/or data can incur expensive overage charges when their cap is exceeded. Without constant monitoring, these charges quickly add up -- particularly with "family plans" where multiple people share the same bundle.
The FCC's proposed rules would require customer notification, such as voice or text alerts, when approaching and having reached monthly limits that will result in overage charges.

Out-of-the-Country Alerts: Many American customers don't know that their "unlimited" minutes, texts, or data plans only cover use within U.S. borders. Consumers can see their bills skyrocket when they travel abroad because of the additional fees for "roaming" on a foreign mobile network.

The FCC's proposed rules would require mobile providers to notify customer when they are about to incur international or other roaming charges that are not covered by their monthly plans, and if they will be charged at higher-than-normal rates.

Easy-to-Find Tools: Many wireless providers use some technological tools to alert consumers about their bills. For example, iPad users automatically receive text alerts when they are about to go over their data limits. But these tools are not widely available and too many consumers don't know about them.

The FCC's proposed rules would require clear disclosure of any tools offered by mobile providers to set usage limits or review usage balances. The FCC is also asking whether all carriers should be required to offer the option of capping usage based on limits set by the consumer.

Consumer Reports: One In Five Hit By Cellular Bill ShockThe FCC is finally stepping in to straighten out the confusion...

Feds Investigating Wireless Firms’ Billing Practices

As expected, the Federal Communications Commission has launched an investigation into wireless carriers' billing practices, a move sparked in large part by Verizon's admission that it tacked small, unwanted charges onto some consumers' bills.

Previously the agency said it was looking into the way Verizon billed its customers. The FCC didn't specifically name the other companies under investigation, but its generally assumed all the providers are coming under scrutiny.

Verizon disclosed last week that some 15 million customers received more than $50 million in charges for data services that weren't part of their contract. Verizon said the false billing occurred because of a software glitch. It's promised to refund up to $90 million in bogus charges.

"While I appreciate that Verizon Wireless has acknowledged its billing errors, the refunds to millions of Americans have been a long time coming," FCC Commissioner Mignon Clyburn said last week.

 "It appears the company was first notified, more than two years ago, about certain billing errors. As I pointed out in December of last year, the company's initial response to public reports of the phantom fees was that it does not charge consumers for accidental launching of the web browser," he said.

Belated action?

 Advocacy groups have been pushing the FCC to look into "bill shock" issues for some time.Complaints to ConsumerAffairs.com about wireless billing practices have been piling up for years.

Tonisha, of Los Angeles, experienced bill shock recently.

 "Being a customer nine years with Verizon Wireless I had grandfathered my way into having call detail free," she said in a complaint to ConsumerAffairs.com. "I changed my number on that line and they started charging me $1.99 a month. That was the straw that broke the camel's back. I called them to pay my bill to discover that it was $790.00."

 Jay, of Sioux City, Iowa, was among those complaining about being charged for Verizon services he didn't want.

 "I called about data usage on two phones I do not use web on but was pretty much told too bad, you push the wrong button you pay for the usage," he told ConsumerAffairs.com. " I did not use the web just pushed a wrong button and got charged for it. They didn't even credit it but why would they when its millions of dollars a month."

 FCC ChairmanJulius Genachowski is expected to unveil a new proposed rule that would require wireless companies to provide a warning to their customers when they are about to exceed voice, text and data limits that would significantly increase their bills.

The Washington Post reports the proposed rule will be formally presented at an FCC meeting this week and would require a majority vote by the Commissioners to take effect.

The Federal Communications Commission is looking into how wireless carriers bill their customers and is weighing new rules....

Cell Phone 'Mystery Charges' Get FCC's Attention

The Federal Communications has promised to open an investigation next week into "bill shock," in response to complaints from wireless customers.

The agency is also reportedly planning to introduce a proposal requiring wireless carriers to notify their customers if their bills have suddenly gone up.

The FCC action comes on the heels on an announcement by Verizon Wireless that it will refund up to $90 million to consumers who were wrongly charged for accessing the Internet with their mobile phones.

The company said it will notify about 15 million customers this month and next that it will apply credits to their accounts due to mistaken past data charges. FCC Commissioner Mignon Clyburn says the action is long overdue.

"While I appreciate that Verizon Wireless has acknowledged its billing errors, the refunds to millions of Americans have been a long time coming," Clyburn said.

"It appears the company was first notified, more than two years ago, about certain billing errors. As I pointed out in December of last year, the company's initial response to public reports of the phantom fees was that it does not charge consumers for accidental launching of the web browser," he said.

Belated action?

While advocacy groups generally applaud the FCC's probe of bill shock, they note that it, too, was a long time in coming. Complaints about wireless billing practices have been piling up for years.

Tonisha, of Los Angeles, experienced bill shock recently.

"Being a customer nine years with Verizon Wireless I had grandfathered my way into having call detail free," she told ConsumerAffairs.com. "I changed my number on that line and they started charging me $1.99 a month. That was the straw that broke the camel's back. I called them to pay my bill to discover that it was $790.00."

Jay, of Sioux City, Iowa, was among those complaining about being charged for Verizon services he didn't want.

"I called about data usage on two phones I do not use web on but was pretty much told to bad, you push the wrong button you pay for the usage," he told ConsumerAffairs.com. " I did not use the web just pushed a wrong button and got charged for it. They didn't even credit it but why would they when its millions of dollars a month."

Cramming

A growing issue among wireless customers is "cramming," in which a third-party provider inserts a charge on a consumer's wireless bill. The law requires providers to pass along the charge, supposedly in the interests of increasing competition. However, the law has been repeatedly exploited by scammers to insert charges for non-existent services.

Consumer groups say the FCC should take action to make the wireless billing process easier for consumers to understand. Since many cellphones are now bundled with other communications services, the bills now take several pages and are hard to follow.

Read more about Cell Phones


The Federal Communications has promised to open an investigationnext week into "bill shock," in response to complaints from wirelesscustomers....

Sprint Settles Cell Phone Cramming Charges In Florida

Sprint has agreed to settle a lawsuit brought by the State of
Florida after Sprint customers complained third-party providers
charged them for services they didn't agree to - a practice known as
"cramming."

Sprint has agreed to continue using a series of "best practices" standards previously established by the Florida Attorney General's Office which protects consumers from third-party "cramming," including charges for "free" ringtones and other cell phone content customers either did not order or did not realize would result in a monthly charge.

Cell phone content includes ringtones, music, wallpaper, horoscopes and other material that is often promoted by online marketers as "free," but ultimately ends up costing up to $19.99 a month. The charges appear on a subscriber's monthly wireless bill and are usually recurring. The bill charges often appear under indiscernible names such as "OpenMarket," "M-Qube" or "M-Blox."

The investigation

A large number of complaints related to the mobile content industry led to an investigation which revealed that thousands of Florida consumers had received these charges on their cell phone bills.

Prior to the investigation, Sprint offered its customers the ability to block third-party mobile content and to implement parental controls free of charge. The investigation and subsequent settlement have been negotiated by the Attorney General's CyberFraud Section of the Economic Crimes Division.

Sprint has agreed to continue using the standards previously established by the Attorney General for advertising on websites, prohibiting the use of the word "free" without clear disclosure of the actual price and requiring all content providers and advertisers to clearly and conspicuously disclose the true cost of cell phone content.

These compliance standards, which include website design restrictions for online advertisers, will ensure consumers see and understand the terms and conditions of the purchase. Sprint will continue to enforce these standards through its contracts with all content providers and advertisers nationwide.

Sprint will also continue its practice of issuing credits and refunds to consumers for unauthorized charges for third-party mobile content subscription purchases.

Settlement

As part of the settlement, the company will pay a total of $800,000 to reimburse the state for the costs of its investigation and to help the Attorney General's Office fund the efforts of the CyberFraud Section as it continues working toward similar reform across the industry. The agreement was negotiated with full cooperation from Sprint.

Sprint is the fourth and final wireless provider to adopt these standards and offer consumer refunds. T-Mobile reached an agreement in July 2010, Verizon Wireless reached an agreement in June 2009, and AT&T Mobility reached the first of these agreements in February 2008.

Read more about Cell Phones

Sprint has agreed to settle a lawsuit brought by the State ofFlorida after Sprint customers complained third-party providerscharged them for services t...

Missouri Gets 'Do Not Call' Injunction Against Satellite Radio Telemarketers

Satellite radio provider Sirius XM offered consumers a free trial of the service. Once the trial was over, the company's telemarketers called consumers to sell a subscription, and kept calling if the consumer declined.

Missouri Attorney General Chris Koster went to court seeking a preliminary injunction against Sirius XM, saying it was calling consumers who were on the state's Do No Call list. The company responded that it had a right to do so, since it had an "existing relationship" with the customer.

A Missouri court sided with Koster, who has also filed a lawsuit alleging violations of the Missouri Merchandising Practices Act and the Telemarketing No-Call List Act. Koster said harassing telephone solicitation calls were made to consumers soliciting satellite radio subscriptions.

In issuing its order granting the preliminary injunction, the court found that the Attorney General's office had established a probability of success at trial on the merits. The judge found that the Missouri citizens on the no-call list would suffer a hardship if the preliminary injunction were not granted. The judge ruled that the preliminary injunction will be in place throughout the litigation until the full trial on the permanent injunction.

Threat to telemarketers

Should Koster win the lawsuit, telemarketers would find themselves at an even greater disadvantage. When Congress adopted the Do Not Call rule, telemarketers were able to carve out the "existing relationship" exception. If the company could persuade a consumer to accept a free trial, for example, that constituted a "relationship" and negated the Do Not Call rule.

In its ruling on preliminary injunction, the court specifically ordered Sirius XM to stop making repetitive calls to consumers on the no-call list who notified the defendant they rejected the Sirius XM subscription or after their free trial period expired, unless the consumer expressly authorized Sirius XM to call.

"Our office will continue to prosecute any business, regardless of its size, when it makes unlawful telemarketing calls to Missourians registered on our no-call list," Koster said. "It is a consumer's right to demand that illegal telemarketing calls that violate Missouri's laws stop, and no matter how aggressively it fights, no business is immune from Missouri's no-call law. We will continue to go after those who violate the law."

Missouri Attorney General Chris Koster went to court seeking apreliminary injunction against Sirius XM, saying it was callingconsumers who were on the ...

Verizon Wireless To Refund $90 Million in Cell Phone Charges

Verizon Wireless has agreed to provide up to $90 million in refunds to consumers who were wrongly charged for accessing the Internet with their mobile phones.

"In October and November, we are notifying about 15 million customers, through their regular bill messages, that we are applying credits to their accounts due to mistaken past data charges," said Mary Coyne, Deputy General Counsel, Verizon Wireless. "We will mail former customers refund checks. In most cases, these credits are in the $2 to $6 range; some will receive larger credits or refunds."

As smartphones began to become the standard in wireless devices, some consumers who simply wanted a phone for voice communications found themselves being charged for a service they didn't want or need.

Awad of Burke, Va., told ConsumerAffairs.com he purchased a phone after being assured by Verizon that it could be used for voice and text messaging only. He said he signed up for unlimited texting because he had two teen-agers.

"I still see over charges for this month and for previous month that I have received," he said. "I am getting tired for this billing system for Verizon. It is simply designed to take more money than the services provided to consumers."

Verizon says that after reviewing customer accounts, the company discovered that over the past several years approximately 15 million customers who did not have data plans were billed for data sessions on their phones that they did not initiate.

"These customers would normally have been billed at the standard rate of $1.99 per megabyte for any data they chose to access from their phones," Coyne said. "The majority of the data sessions involved minor data exchanges caused by software built into their phones; others included accessing certain web links, which should not have incurred charges. We have addressed these issues to avoid unintended data charges in the future."

FCC pressure

Verizon announced the refunds while in the midst of negotiations with the Federal Communications Commission, which is looking into the complaints about unauthorized charges. The New York Times quotes sources close to the talks as saying the agency is likely to press for additional penalties for Verizon's unauthorized charges.

The $90 million refund is the largest ever initiated by a telecommunications company.

Verizon Wireless has agreed to provide up to $90 million inrefunds to consumers....

Toshiba To Offer No-Glasses 3D TV

When skeptics talk about 3D television, they inevitably get around to the requirement posed by those silly glasses. Who, they ask, wants to sit in their living room wearing special glasses, just so they can watch TV in 3D?

Toshiba says it has an answer, announcing that it will introduce a small screen 3D TV that viewers can watch, getting the full 3D effect, without wearing 3D glasses. The 12- and 20-inch sets will hit the market in December in Japan, though Toshiba did not say when they would be available in the U.S.

The initial price for the Glasses-less 3D REGZA GL1 will start at about 120,000 yen, with is roughly $1,400. The 20-inch model will cost about twice as much.

While Toshiba may have gotten rid of the glasses problem, technology blogger Jared Newman, of PC World, suggests consumers not get too excited. He notes that viewers must sit directly in front of the screen in order to get the 3D effect. That can limit how many people you invite over to watch the big game. And its a pretty hefty price tag, he points out, for such a small TV.

Toshiba, meanwhile, says "the new Glasses-less 3D REGZA GL1 series employ an integral imaging system and perpendicular lenticular sheet that can display natural and smooth high quality 3D images."

The company says the integral imaging systems is based on the principal of sampling and collecting form several directions the light reflected from an object, and then faithfully reproducing the light through the display to realize smooth, natural images. Until now, Toshiba says, conventional 3D technology without glasses has produced a fall off in image resolution and increased blurring that has prevented practical use.

Toshiba said it employs an LED backlit LCD panel specially designed for 3D content that systematically aligns pixels, and has also adopted a perpendicular lenticular sheet in order to realize precise rendering and natural, high quality 3D images.

Toshiba introduces a small screen 3D TV that viewers can watch, getting the full 3D effect, without wearing glasses....

AT&T Gouged Long Distance Customers for 'Universal Connectivity' Fees, Court Finds

A federal appeals court upheld a settlement against AT&T in a case involving universal connectivity fees that rural California consumers said were too high.

In a 44-page opinion, the 10th Circuit Court of Appeals held that AT&T's language describing the fee was a legally binding promise, and that consumers were thus entitled to hold the company to its word.

The litigation, which involved several consolidated class actions, concerned a monthly line-item charge amounting to nearly 10 percent of consumers' phone bills. The charge was explained in consumers' service agreements, which also contained a clause forbidding customers from bringing class action lawsuits, instead providing that any dispute would be determined by a neutral arbitrator.

Despite the arbitration clause, a district court allowed the class action to proceed, and a jury awarded the class $16 million.

AT&T charged nearly double

AT&T contended that the charge was necessary to make up for its contribution to the Universal Service Fund, created by the Federal Communications Commission in 1997. The fund, which was set up in response to the comprehensive Telecommunications Act of 1996, was intended to ensure that low-income consumers, and those in rural or high-cost areas, had access to reliable and relatively high-quality phone service.

The Act specifically required all service providers to provide equitable and non-discriminatory contributions to the fund.

The suit, however, contended that AT&T was charging its customers an amount nearly double that which it was required to provide to the fund. According to the suit, the FCC required a contribution of 6.8 percent from service providers; by contrast, AT&T was charging consumers 11.5 percent percent of their long distance charges.

The suit alleged that AT&T kept the difference, an amount that added up to five percent of its consumers' long-distance fees. And the plaintiffs said that AT&T hid its practices not only from consumers, but also from states and regulatory agencies. According to the suit, this scheme allowed AT&T to advertise lower rates than what it was actually charging, since it could essentially make up the difference in the hidden fees.

AT&T didn't outright deny the allegations, but rather said that the fund's complexities made it difficult to determine how much it would have to pay. The court conceded that it was virtually impossible for AT&T to charge exactly the correct amount each billing cycle, but countered that the company could implement a mechanism to allow it to calibrate its charges over several billing cycles.

In its decision, the Court of Appeals held that AT&T's description of the fee -- as a monthly charge to Customers to recover amounts AT&T must pay into -- constitutes a valid promise under New York law, under which the case was decided. The suit had noted that AT&T described the fee this way in mailings, recordings on its 800 number, and on its website.

The suit contained counts for fraud and violation of the Federal Telecommunications Act.

AT&T Gouged Customers for 'Universal Connectivity' Fees, Court Finds - AT&T charged consumers extra, pocketed the difference...

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Samsung Introduces Tablet Computer



Hoping to give Apple some competition, Samsung has announced plans for a tablet computer as an alternative to the popular iPad.

While Apple's iPad has connectivity through AT&T's network, the new Samsung Galaxy Tab will connect using Verizon Wireless. The product will launch in the coming weeks, Samsung said.

In announcing the product, Samsung failed to mention how much it would cost to buy one. The technology publication PC World notes that a 16GB Samsung Galaxy Tab is already being marketed in the UK, at a price of over $1000, about twice the price of an Apple iPad.

According to a company release, the Galexy will feature a seven-inch touch screen and a 1.2 GHz Cortex A8 Hummingbird Application processor.

"The Samsung Galaxy Tab is an exciting addition to the Verizon Wireless Android portfolio," said John Stratton, executive vice president and chief marketing officer for Verizon Wireless. "Coupled with the nation's largest 3G network, the Galaxy Tab is a powerhouse that will be as exciting to use as it is practical for both consumers and business customers."

Verizon Wireless will market the Galaxy Tab with a number of exclusive applications such as V CAST Music with Rhapsody, V CAST Video on Demand, V CAST Song ID, VZ Navigator, along with games "Let's Golf" and "N.O.V.A."

Flash support

Unlike the original iPad, the Galaxy will offer full support for Adobe Flash 10.1 for video and mobile gaming and an integrated entertainment, multimedia and social networking experience. Apple this month relaxed its ban on Flash apps, saying it was responding to feedback from developers.

Key features of the new tablet computer include:

• TFT display with WSVGA resolution Delivers 1024 x 600 resolution whether watching a movie or reading a book

• Rear-facing, 3.0-megapixel camera and camcorder AutoFocus captures DVD quality video

• Front-facing, 1.3-megapixel camera and camcorder Enables video chat with other people who have video conferencing capabilities (applications available in Android Market)

• Corporate Email Supports Android 2.2 Exchange ActiveSync e-mail to synchronize corporate e-mail, contacts and calendars from office e-mail accounts

• Wi-Fi connectivity (802.11 b/g/n)

• Built-in 2 GB internal memory with 16 GB pre-installed microSD expandable to 32 GB

• 4,000 mAh Battery Provides ample power to watch movies, share content and surf the Web for hours

• Ultra thin and weighing less than a pound For users who don't want to be weighed down by adding a mobile tablet to their pocket or purse

Samsung Introduces Tablet Computer...

J.D. Power: Incidence of Dropped Calls Increases Among Wireless Provider Switchers


Few things are more aggravating than having your cell phone signal drop out in the middle of a call. But, according to the J.D. Power and Associates 2010 U.S. Wireless Call Quality Performance Study -- Volume 2 -- it seems to be happening more.

The latest survey shows problem rates related to dropped calls have increased notably from six months ago among wireless customers who are most likely to switch providers.

Seven problem areas

The semiannual study measures wireless call quality, based on seven problem areas that impact overall carrier performance: dropped calls; static/interference; failed call connection on the first try; voice distortion; echoes; no immediate voicemail notification; and no immediate text message notification.

Call quality issues are measured as problems per 100 (PP100) calls, where a lower score reflects fewer problems and higher call quality. Performance was examined in six regions: Northeast; Mid-Atlantic; Southeast; North Central; Southwest; and West.

The study finds that 14 percent of customers say they "definitely will" or "probably will" switch wireless providers in the next 12 months and that these customers experience a particularly high rate of call-related problems. The rate of call quality problems among customers who say they "definitely will" switch their current wireless provider is more than four times higher than problem rates among customers who say they "definitely will not" switch in the next 12 months (29 PP100 vs. 7 PP100, respectively).

Why they switch

Specifically, dropped calls are primarily driving the high switching rate, compared with other call quality issues. For example, problem rates average 20 PP100 among customers who say they "definitely will" switch carriers within the next year and also say they had at least one dropped call. Furthermore, the rate of dropped call problems among customers who say they "definitely will" switch has increased by 33 percent from six months ago.

In comparison, among those wireless customers who experience calls that are not connected on the first try, the average problem rate is 11 PP100, up slightly from 10 PP100 six months ago.

"With an increasingly competitive environment and the complexity of services often used in conjunction with cell phones steadily on the rise, carriers that offer superior network quality may improve their likelihood of attracting new customers and increasing customer retention," said Kirk Parsons, senior director of wireless services at J.D. Power and Associates. "In fact, improving network quality and, in turn, retaining the customers most likely to switch are beneficial financial incentives for wireless carriers, as customers who are more likely to switch tend to spend an average of $82 per month and make or receive 127 calls per month, while those who aren't considering switching spend $78 and make or receive 104 calls per month, on average."

Regional rankings

For a 12th consecutive reporting period, Verizon Wireless ranks highest in both the Northeast and Mid-Atlantic regions. The company achieves fewer customer-reported problems with dropped calls, initial connections and interference, compared with the regional averages. Verizon Wireless also ranks highest in the West region and ranks highest in the Southeast region in a tie with both Sprint Nextel and T-Mobile.

In the North Central region, U.S. Cellular ranks highest for a 10th consecutive reporting period. Compared with the regional average, it has fewer customer-reported problems with dropped calls, failed initial connections, interference and echoes.

In the Southwest region, T-Mobile ranks highest, due mainly to lower reported PP100 ratings in voice-centric dimensions such as interference, echoes and voice distortion, compared with the regional averages.

"Wireless customers rely on their phones to do everything from providing them with driving directions to sending picture messages, as well as placing calls, so carriers must provide their customers with problem-free experiences to keep them satisfied," said Parsons. "Wireless customers have higher expectations than ever before of their phones and the networks on which they operate."

Complaints roll in

ConsumerAffairs.com hears tons of complaints about dropped calls. A sampling includes:

• Verizon Wireless customer Victoria of Dublin, CA, who writes, "I was told that I can use my cell phone from coast to coast and that they have more towers so less dropped calls. But I even got dropped talking to Verizon Tech; they had to call me back on a landline phone."

• Yvette of Vicksburg, MS, tells us, that when she opened her T-Mobile account, "the service wasn't great to begin with but got worse as time went by. Dropped calls, loss of signal for no reason right in the middle of calls etc. I finally decided to switch to another cell phone company."

• "My husband and I began experiencing a very high amount of dropped calls on our Nextel mobile phones," wrote Christina, of Baltimore. "Finally after four months of not being able to make a cell call without it being dropped, I called to cancel."

Additional study findings

• Wireless usage patterns continue to evolve, as fewer calls are made or received and customers use their devices more often for text messaging, which increasingly is the preferred method for communication. The study finds that wireless customers receive 144 text message notifications per month -- 29 percent more text message notifications than reported one year ago.

• PP100 scores continue to be higher among smartphone customers than among traditional handset customers -- 13PP100 vs. 9PP100. However, both rates are lower than those reported six months ago.

• Among the top 27 U.S. markets, the PP100 score is lowest among wireless customers in the Tampa, Fla., area (5 PP100), and highest among wireless customers in Charlotte, N.C. (19 PP100).

The study, based on responses from 26,595 wireless customers, was conducted between January and June 2010.

J.D. Power: Incidence of Dropped Calls Increases Among Wireless Provider Switchers...

Wal-Mart Offers No-Contract 'Post-Paid' Cell Phone Plan

Wal-Mart is moving into the "post-paid" cell phone market with a $45-per-month, unlimited talk/texting plan that it says could save a family of three up to $1,200 per year. Wal-Mart Family Mobile will operate on the T-Mobile network starting Sept. 20.

Wal-Mart is billing its Family Mobile as a "no surprise" service, with a fixed monthly rate of $45 for the first line and $25 per month for each additional line. Data plans -- for accessing the Internet -- come with a free preloaded 100MB "WebPak" on each line. The company said the WebPak is shared among all lines on an account and unused data never expires. Additional WebPak refill cards are purchased upfront in stores or online.

Consumers will be billed at the end of each month, rather than paying in advance as they do with a prepaid phone. Hence, the "post-paid" moniker.

"Wal-Mart Family Mobile makes it more affordable to build meaningful relationships with family and friends so that even when budgets are limited, time spent communicating with loved ones isn't," said Greg Hall, vice president of merchandising, Wal-Mart U.S. "This plan provides families with the flexibility to connect with each other without surprise charges and with the added benefit of one of the most trusted wireless network providers."

The plan offers phones from Samsung, Motorola and Nokia, including phones with the Android Operating System, QWERTY keyboard, touch screens and other features. Since there is no annual contract, customers can upgrade anytime by purchasing a new handset with no extra fees or contract commitment.

Prices for the phones range from $34.96 for the Nokia 1661 to $249 for the Motorola Clique XT. The Motorola model is the only smartphone currently being offered but Wal-Mart officials said additional devices will be added later.

Not a Nexus

Observers noted that Wal-Mart's plan included many of the features that were heavily promoted by Google when it rolled out its Nexus One cell phone, an unbundled smartphone that could be purchased independently of any data plan. The phone was sold only online and was quickly declared a flop, largely because of customer service issues that Wal-Mart should be able to overcome with its huge network of stores.

A possible stumbling block, however, is the T-Mobile network, which was also the default network for the Nexus One. T-Mobile generally gets high marks for its engineering but its penetration in lightly populated areas is regarded as inferior to Verizon, AT&T and Sprint -- a shortcoming cited by many ConsumerAffairs.com readers.

"Their reception is very bad," said Luis of Livermore, Calif. "Like in stores I don't get a lot of reception even though there is coverage. I see a lot of people walking and talking on the phone while I just go and exit buildings in order to receive reception. IT SUCKS!"

Or, as Craig of Jupiter, Fla., put it in a complaint several years ago: "Their coverage map should carry the footnote, 'We really have no idea where we have a signal, so we had an artist make this up. Her favorite color is red, so she used it a lot.' "

For its part, T-Mobile says its "robust" network is just what talkative families ordered.

"Wal-Mart is known for great value and we're pleased to offer our robust network of nationwide coverage for Wal-Mart Family Mobile," said Jim Alling, Chief Operations Officer, T-Mobile USA. "This new service is an innovative approach, offering post-paid customers a low-cost alternative for unlimited voice, messaging, web and inexpensive international calling."

Wal-Mart Offers No-Contract 'Post-Paid' Cell Phone Plan...

Scammers Creating 57,000 Fake Web Sites A Week


Scammers trying to steal consumers' identities create fake websites to simulate actual web pages of banks and well known companies. They create so many pages its almost impossible for search engines to weed them out.

A new study by PandaLabs, a software security firm, estimates hackers are creating 57,000 new Web addresses each week. They position and index these phony sites on leading search engines in the hope that unwary users will click them by mistake.

Those who do will see their computers infected or any data they enter on these pages fall into the hands of criminals. To do this, they use an average of 375 company brands and names of private institutions from all over the world, all of them instantly recognizable. eBay, Western Union and Visa top the rankings of the most frequently used keywords; followed by Amazon, Bank of America, Paypal and the Internal Revenue Service.

As it often happens, a consumer will receive an email that appears to come from a recognizable entity. The message entices the recipient to click on a link that will take him to a web page that, for all appearances, is part of the real company's Web site. But any information entered on the page goes straight to the scammer.

These days, most web savvy consumers know better than to click on links in Spam emails. However, if a fake website shows up in a Google search, that can catch even the most savvy computer user off guard.

Impersonating bank sites

According to the study, some 65 percent of these fake websites are positioned as belonging to banks. For the most part, they pose as banks in order to steal users' login credentials.

Online stores and auction sites are also popular, with eBay the most widely used. Other financial institutions (such as investment funds or stockbrokers) and government organizations occupy the following positions. The latter is largely accounted for by the IRS or other tax-related sites.

Payment platforms, led by Paypal, and ISPs are in fifth and sixth place, while gaming sites -- topped by World of Warcraft -- complete the ranking.

Just as in previous years malware or phishing was typically distributed via email, in 2009 and particularly this year, hackers have opted for BHSEO techniques, which involves creating fake websites using the names of famous brands.

This way, when users search for these names, a link to the malicious website will appear among the first results returned. When they visit these sites, one of two things will happen: either malware will be downloaded onto the user's computer -- with or without their knowledge -- or the website spoofs the appearance of a genuine page, a bank say, and users will unwittingly enter their details which will fall into the hands of criminals.

Extra caution

"The problem is that when you visit a website through search engines, it can be difficult for users to know whether it is genuine or not," said Luis Corrons, Technical Director of PandaLabs. "For this reason, and given the proliferation of this technique, it is advisable to go to banking sites or online stores by typing in the address in the browser, rather than using search engines which, although they are making an effort to mitigate the situation by changing indexing algorithms, cannot fully evade the great avalanche of new Web addresses being created by hackers every day."

Scammers Creating 57,000 Fake Web Sites A Week: Scammers trying to steal consumers' identities create fake websites to simulate actual web pages of banks a...

Caller ID 'Spoofing' a Growing Threat


Have you ever had a telephone call when you checked the Caller ID and decided it was a call you wanted to take, only to find out when you answered the call, it was not the caller you anticipated? If this has happened to you, you have been the victim of Caller ID spoofing, notes the North Dakota Attorney General's Office.

Caller ID spoofing is the practice of using the telephone network to display a number on the recipients Caller ID display which is not that of the actual originating phone. The fraudulent uses of this practice are increasing.

Gaining access to Caller ID spoofing capabilities is as easy as logging onto one of several well known websites, creating an account, providing a credit card number for fees associated with the call (for as little as $10 per 60 minutes), entering your pin number, and entering any number you wish to spoof. You can even disguise your voice if you wish, choosing either a male or female voice!

While there are legitimate uses for Caller ID spoofing, here are some uses that are not considered legitimate:

• Voicemail Hacking Caller ID spoofing can, in some cases, be used to access voicemail boxes with some providers. Many phone providers have taken steps to prevent this from happening on their systems.

• Wire Fraud scammers have figured out that businesses providing wire transfer services rely on Caller ID to verify that the caller is calling from their home phone numbers. The scammers will call to initiate a wire transfer with the Caller ID of the person they are pretending to be, and will use that persons credit card or bank account to transfer funds to another account - most often in another country.

• Phone Phishing phishing scammers are using Caller ID spoofing to gain personal information from victims over the telephone by appearing to be from the victims bank or credit card company, etc. Phone phishing is fraudulent and is illegal.

• Threats Caller ID spoofing has been used to phone in bomb threats, kidnapping and other threats to law enforcement. Law enforcement takes threats seriously and investigations cost thousands of dollars in resources until the threat is proven to be a hoax.

• Prank Calls Caller ID spoofing is often used in making prank calls to friends and family. While these calls are often harmless, they can cause alarm to the recipient of the call.

While there is currently no way to block your phone from Caller ID spoofing, here are some common tips to remember when you receive a telephone call:

• Dont trust anyone. Anyone you do business with already has the information they need on you. They will not call and ask you your social security number or to verify your account number.

• If you receive a call from your bank, credit card company etc., write down the number on the caller ID, hang up and redial their number.

• Dont assume it is who you think it is, even if the Caller ID indicates it is a relative, your childrens school or the local police department. You may wish to exercise some caution. For instance, you could hang up and call the number back.

• If you have additional questions regarding Caller ID spoofing, contact the Federal Communications Commission (FCC) consumer hotline at 1-888-225-5322.

Caller ID spoofing is the practice of using the telephone network to display a number on the recipients Caller ID display which is not that of the actual o...

Amazon.com Users Growing Targets of Phishing Scams


If you have an account with Amazon.com -- and millions of consumers do -- be on the lookout for new and evolving phishing scams aimed at stealing your account username and password.

Identity thieves have launched a new scheme in recent weeks, allowing them to gain access to victims' accounts and order as much merchandise as they want. If the victims keep a credit card on file with Amazon, those illegal purchases can be billed to the victims.

The scam takes many forms but in one recent batch of spam emails, the subject line says "Verify Your New Email Address." Since most targets haven't changed their email address, naturally they are concerned enough to open and read the email.

The message directs the recipients to click on a link that takes them to what they believe to be a page on Amazon.com's site, but in reality is a page controlled by the scammers. They are directed to log in to their account and, if they do, the scammer records their user name and password.

Amazon.com is increasingly a popular vehicles for scammers and identity thieves because so many people all over the world have accounts. In another version of the scam, victims receive emails, made to look like they are from Amazon.com, with the subject line "Thank You For Your Order." It's objective is the same -- to steal your log in information.

"From time to time, you might receive e-mails that look like they come from Amazon.com, but they are, in fact, falsified," Amazon.com warns on its website. "Often these e-mails direct you to a Web site that looks similar to the Amazon.com Web site, where you might be asked to provide account information such as your e-mail address and password combination. Unfortunately, these false Web sites can steal your sensitive information; later, this information may be used to commit fraud."

The company says the schemes can not only steal account log-in information, but download dangerous virus and malware programs.

Dead giveaways

Amazon.com says it will never ask you for the following information in an e-mail communication:

• Your Social Security number or tax identification number

• Your credit card number, PIN number, or credit card security code (including "updates" to any of the above)

• Your mother's maiden name

• Your Amazon.com password

Amazon.com said it will not ask you to verify or confirm your Amazon.com account information by clicking on a link from an e-mail. It also said it does not send order confirmations or other unsolicited requests that require you to open attachments, nor do they permit their merchants to do so.

"We recommend that you do not open any e-mail attachments from suspicious or unknown sources," the company warns.

Also, be on the lookout for poor grammar or typographical errors. Some phishing e-mails are translated from other languages or are sent without being proofread, and as a result, contain bad grammar or typographical errors.

Take a closer look

Still not sure the email is from Amazon.com? Then check the return address.

While phishers often send forged e-mail to make it look like it came from Amazon.com, you can sometimes determine whether it's authentic by checking the return address. If the "from" line of the e-mail looks like "amazon-security@hotmail.com" or "amazon-fraud@msn.com," or contains the name of another Internet service provider, you can be sure it is a fraudulent e-mail.

Finally, check the Web site address. Genuine Amazon.com web sites are always hosted on the "amazon.com" domain--"http://www.amazon.com/" (or "https://www.amazon.com/.) Sometimes the link included in spoofed e-mails looks like a genuine Amazon.com address. You can check where it actually points to by hovering your mouse over the link -- the actual Web site where it points to will be shown in the status bar at the bottom of your browser window or as a pop-up.

"We never use a web address such as "http://security-amazon.com/" or an IP address followed by directories such as "http://123.456.789.123/amazon.com/," the company said.

Amazon.com Users Growing Targets of Phishing Scams...

Gartner: Worldwide PC Shipments To Grow In 2010


Worldwide PC shipments are projected to total 367.8 million units in this year -- a 19.2 percent increase from 308.3 million units shipped in 2009, according to the latest preliminary forecast by Gartner, Inc.

"The PC market revived in the first half of 2010, but the real test of its resilience is yet to come," said Ranjit Atwal, research director at Gartner, an information technology research and advisory company. "We have reduced our forecast for second-half 2010 PC growth to 15.3 percent, approximately two percent below our previous forecast, in light of the uncertain economic outlook for the United States and Western Europe."

Slower consumer PC purchases

Atwal said there is no doubt that consumer, if not business, PC demand has slowed relative to expectations in mature markets. Recent dramatic shifts in the PC supply chain were "in no small part a reaction to fears of a sharp slowdown in mature-market demand," he said. "However, suppliers' risk-aversion is as much a factor in these shifts as any actual downshift in demand."

Consumers buoyed the PC market in 2009 as businesses delayed their purchases. But the slow pace of economic recovery and austerity measures in Europe have made PC suppliers very cautious in 2010. Atwal believes consumer demand is likely to remain strong even if the economic recovery stalls because consumers now view the PC as a relative 'necessity' rather than a 'luxury' and will continue to spend on PCs, even at the expense of other consumer electronic devices.

Gartner analysts said businesses will find it very difficult to delay PC replacements further. The age of the professional PC installed base is already at an all-time high.

"Businesses that delay replacing much longer risk alienating employees, burdening themselves with more service requests and support costs, and ultimately facing higher migration costs when they eventually migrate to Windows 7," Atwal said. "The bottom line is that businesses need to refresh their PCs sooner rather than later. Thus, the full bloom of the long-awaited professional PC refresh can't be more than a few quarters ahead."

The mini factor

Mini-notebooks' impact on the PC market has peaked and is now waning, according to Raphael Vasquez, research analyst at Gartner. Mini-notebooks' share of mobile PC shipments declined for the second consecutive quarter in the second quarter of 2010, falling under 18 percent.

Mini-notebooks' share of the mobile PC market peaked in late 2009, when they accounted for nearly 20 percent of total mobile PC shipments. Their share is expected to continue falling until it reaches around 10 percent by late 2014.

"We still think the mini-notebook has a place in the mobile PC market, but not as a substitute for a standard mobile PC. Indeed, the recent decline in mini-notebooks' share of the mobile PC market reflects a general realization among buyers that mini-notebooks are less-than-perfect substitutes for standard low-end laptops," Vasquez said. "Buyers who once would have bought a mini-notebook based solely on its low price now seem more inclined to buy a low-end standard notebook, especially since the prices of the two have converged. Mini-notebooks are slowly but surely carving out a market niche for themselves as companion devices. However, the emergence of media tablets is a growing threat to that niche."

Gartner defines a tablet PC as having a touchscreen size of five inches or more, outfitted with a full-function operating system (OS), such as Windows 7, Windows Vista, Windows XP or Mac OS X. A media tablet is defined as a device that has a screen size of five inches or larger and is outfitted with a restricted-function OS, such as iPhone, Android and Chrome.

Gartner includes tablet PCs in its PC market statistics and forecasts, but excludes media tablets from both. Nonetheless, media tablets will affect the PC market, especially mini-notebooks, and the forecast reflects this impact, said George Shiffler, research director at Gartner.

"The iPad hasn't had much of an impact on mini-notebook units so far, if only because it is generally priced higher than most mini-notebooks," said George Shiffler, research director at Gartner. "However, we anticipate lower-priced iPad imitations will begin to take larger bites out of mini-notebook units as they are released next year."

Gartner: Worldwide PC Shipments To Grow In 2010...

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Facebook Offer To 'Test' Apple Gadgets Is A Scam


You'd like to have an Apple iPad or iPhone so, if you were offered the chance to "test" the product and get a free device, you might jump at it, right?

Well, keep in mind the advice that "if it sounds too good to be true, it probably is," because scammers are now using this pitch on Facebook in order to get their hands on your personal information.

Graham Cluley, a security expert for Sophos security software, is warning that in recent days he has begun seeing Facebook users who appear to be offering free iPads and iPhones for people who will try them out.

The come-on

Here's an example of a typical iPad tester scam that Cluley says has been seen many times on Facebook in the last few days:

Heyyyyy everyone )), 3 days ago I signed up at [website link] as a tester and today I got my iPad. All you need to do is to tell them your opinion about iPad and you can keep it forever. You should hurry since i highly doubt this is gonna last forever.

And Cluley offers this example of a similarly-worded iPhone 4 tester scam:

Hey, 3 days ago I signed up at [website link] as a tester and today I got my iPhone4g. All you need to do is to tell them your opinion about iPhone 4g and you can keep it forever. You should hurry since i highly doubt this is gonna last forever.

Many of these messages are appearing on users' photo walls. People who respond do not get a free iPad or iPhone.

Don't take the bait

"If you've found messages like these on your Facebook profile or in your photo galleries, remove them immediately and change your passwords," Cluley writes on his blog. "You would also be wise to have a thorough overhaul of your privacy and account settings -- to make sure that they-re secure enough. If you see applications or "likes" of pages that you are uncertain about, remove them from your account."

It's a reminder to exercise caution and vigilance on the Internet, especially on social networking sites. Other good advice is to periodically run a virus-scan with an up-to-date anti-malware product -- just in case there's some spyware lurking on your computer which is trying to grab your account details.

You'd like to have an Apple iPad or iPhone so, if you were offered the chance to "test" the product and get a free device, you might jump at it, right?...

Facebook 'Dislike' Button A Scam


If you're offered a chance to install a "dislike" button on your Facebook page, ignore it. It's part of a phishing scam.

The idea behind the "dislike" button is to allow users to flag comments they don't like. Facebook has a "like" button but not a "dislike" button, and says it has no plans to add one.

"It's the latest survey scam spreading virally across Facebook, using the tried-and-tested formula used in the past by other viral scams including 'Justin Bieber trying to flirt,' 'Student attacked his teacher and nearly killed him,' 'the biggest and scariest snake,' and the 'world's worst McDonald's customer," Sophos security expert Graham Cluely wrote in his blog.

The hook comes in a post that is supposed to look like it came from one of your friends. It says "I just got the Dislike button, so now I can Dislike all of your dumb posts.lol!!!" Other versions say something like "get the official Dislike button now!"

Becoming vulnerable

The scam targets victims to download an application that allegedly will install the Dislike button on their page. Instead, the link downloads a rogue application that gives the scammer access to the victim's Facebook account.

The program also installs a message on the victim's page, urging friends to also install the button and providing the link. Cluley says, in that way, the scam is growing virally.

The main purpose of the scam is to allow scammers to post spam messages on millions of Facebook pages.

A spokesman for Facebook said the site tries to make sure links and rogue applications are taken down as quickly as possible.

"We always encourage people to not click on links that appear suspicious -- even if posted from a friend," a spokesman told the BBC.

Facebook 'Dislike' Button A Scam...

Dangerous Computer Virus Emptying Bank Accounts

A new "Trojan" computer virus is making the rounds, stealing user names and passwords of an undisclosed number of British online banking customers, resulting in the loss of more than $1 million.

A report in the London Telegraph says computer users unknowingly downloaded the malicious program when they opened an email attachment. The newspaper quotes sources at M86, the British agency that uncovered the scam, as saying all the victims so far were customers of the same bank. The agency says the attacks are continuing.

Trojan viruses can affect computers running the Windows operating system. They lurk in emails and even on websites.

Also called "key loggers," these programs, once installed on a computer, record every keystroke the user makes. That information can be retrieved remotely, giving the hacker access to the victim's user names and passwords.

In the British case, the attacker then used the information to log into the victims' online bank accounts and take all their money.

On the trail

So far British authorities have not identified the particular Trojan being used in this attack, but computer security firm Sophos, in its latest security alert, is warning consumers about the Mal/EncPk-QY, a malicious downloader that is capable of carrying out the current attack on bank accounts. Sophos said it saw Mal/EncPk-QY in almost 44 percent of email attachments in a recent variety of spam campaigns.

Sample subjects of spam campaigns seen distributing the attachment:

• Your Facebook password is changed

• Review your annual Social Security statement DHL Tracking number 397176595115 From

Some attachment names include:

•Facebook_Passw_31.07.2010.zip

• statement.zip

• viewer.zip

• document.zip

The file extracted from the zip file is an executable. When run, the executable contacts a server to deliver information about the target machine, including the hostname, as well as download yet another executable.

Security experts say consumers running Windows can protect themselves by keeping their operating systems, browser, and security software up to date. Most Trojans exploit known vulnerabilities in Windows programs for which patches currently exist.

A new "Trojan" computer virus is stealing user names and passwords of an undisclosed number of British online banking customers, resulting in the loss of m...

AGs Bring Antitrust Charges Against LCD Panel Makers


Major technology companies have been hit with an antitrust action charging that they illegally fixed the prices for liquid crystal display (LCD) screens used in computers, televisions, and cell phones.

In her lawsuit, Illinois AG Lisa Madigan asks the Circuit Court of Cook County to prohibit the companies from engaging in the illegal activity and to award as damages the overcharges paid on the purchase of these items by the State of Illinois and its residents. The suit also seeks civil penalties, fees and costs.

"These companies conspired to illegally fix the prices for LCD screens," said Madigan. "This lawsuit seeks to recover the money that Illinois residents and the State paid because of the price-fixing conspiracy."

In his $100 million lawsuit, Oregon Attorney General John Kroger charges that top executives of the firms held special meetings and used a telephone "hotline" in order to share pricing information and production volumes and agreed to inflated prices resulting in artificially high prices to Oregon purchasers of LCD panels and products.

"This important lawsuit will help ensure a fair marketplace and protect Oregon consumers," Kroger said.

Collusion charged

The Japanese, Korean, and Taiwanese companies, in combination with their American and certain foreign subsidiaries, allegedly agreed with each other to raise the prices each would charge for their LCD screens. These companies controlled approximately 90 percent of the sales of LCD screens sold in the United States. As a result, the suits claim, the prices for the products containing these screens were raised to levels significantly above the prices that consumers would otherwise have paid had the prices been set through normal competition.

The Illinois complaint cites evidence that:

• Top-level executives of these companies, including some of their CEOs, attended secret meetings on a regular monthly or quarterly basis to agree on minimum prices, price targets and increases, and prices to be charged for specific screens and screen sizes.

• These companies exchanged price and production information to insure that their consumers would have to pay the agreed prices.

• These companies also met face-to-face and by phone in smaller groups or one-on-one to coordinate their prices and avoid letting competition lead to lower prices.

The defendants named in the actions are AU Optronics Corporation; AU Optronics Corporation America, Inc.; Chi Mei Innolux Corporation; Chi Mei Optoelectronics Corp. USA, Inc.; CMO Japan Co., Ltd.; Epson Imaging Devices Corp.; Epson Electronics America, Inc.; Hitachi, Ltd.; Hitachi Displays, Ltd.; Hitachi America, Ltd.; Hitachi Electronic Devices (USA), Inc.; LG Display Co., Ltd.; LG Display America, Inc.; Samsung Electronics Co., Ltd.; Samsung Semiconductor, Inc.; Samsung Electronics America, Inc.; Sharp Corporation; Sharp Electronics Corporation; Toshiba Corporation; Toshiba America Electronic Components, Inc.; Toshiba Mobile Display Co., Ltd.; and Toshiba America Information Systems, Inc.

Spokesmen for Samsung and Toshiba told Bloomberg.com that their companies don't comment on legal issues.

Prior to filing the lawsuit Kroger and other state attorneys general obtained a settlement with Chunghwa Picture Tubes LTD, the terms of which require the company to cooperate with the states' lawsuits and pay $486,000.

AGs Bring Antitrust Charges Against LCD Panel Makers...

Consumer Confusion Drove Intelius, Says Washington AG


Hundreds of thousands of consumers may have unknowingly enrolled in membership programs while using websites owned by Bellevue, Wash.-based Intelius.

A two-year investigation by the Washington Attorney General's Office contends Intelius received thousands of consumer complaints regarding unauthorized enrollment in the programs and that company management -- including CEO Naveen Jain -- knew about the complaints but chose to continue the deceptive and tremendously profitable marketing tactics.

"Intelius chose cash over candor," said Attorney General Rob McKenna. "Despite a continuous stream of complaints from consumers about mysterious charges, despite a consultant's belief that Intelius' advertising practices were causing confusion and despite a recommendation from its own staff to make it easier for consumers to opt out of additional purchases, the company wouldn't change course."

McKenna said a $1.3 million settlement with Intelius will protect consumers. The settlement, filed in King County Superior Court, doesn't require the company to admit any wrongdoing, but significantly restricts its future advertising practices. Intelius will also provide refunds to Washington state residents who were enrolled in the company's "Identity Protect" program but never used the service.

Post-transaction marketing

The investigation by McKenna's Consumer Protection High-Tech Unit focused on an Internet sales method commonly referred to as post-transaction marketing In that arrangement, additional services are offered to consumers after they've submitted their credit card data but before they've received the product they intended to purchase.

"Post-transaction marketing plunges you into an online labyrinth where the only way out is to click and click and click," McKenna said. "One wrong turn and you're enrolled in a membership program that costs you $20 or more each month. And you'll never know until you scrutinize your credit-card bill."

A Scottsdale, AZ, consumer, who did not want his name revealed, says he used the People Search website once approximately 12 months ago and paid a $1.00 charge for the service. "Since then," he tells ConsumerAffairs.com, "I was charged a monthly fee for 19.95 for Intelius (which apparently is People Search and was the name of the charge on my account), as well as $19.95 per month for Privacy Matters. I never even signed up on Privacy Matters. I only used that one service on that one incident and now I've been charged a total of $39.90/month."

The sales tactic gained notoriety in November 2009 when the U.S. Senate Commerce, Science and Transportation Committee released an investigative report accusing Web companies of duping consumers. McKenna was the only attorney general to submit testimony in connection with the committee's hearing. He pointed out that investigations suggest more than $50 million has been deceptively obtained from Washington consumers by a handful of businesses.

Washington's case directly addresses the sort of problems spotlighted by the Senate report. Most notably, the settlement prohibits the company from accepting advertising from Vertrue, Inc., WebLoyalty, Inc., and Affinion. It also prohibits Intelius from transmitting a consumer's financial information to any third party to enable that party to bill consumers.

An example of this ploy comes from Joel of Roque Bluffs, ME, who writes, "On April 12, 2008 I charged 2.95 on my American Express Card, payable to Intelius for a phone number look-up On April 23, 2008 a charge of 19.95 showed up on my AMEX card from AP9*PMIDENTITY.COM. It has been charged every month since." Joel tells ConsumerAffairs.com that he reported it to AMEX, which credited the most recent charge and is investigating.

The settlement

The agreement also addresses Intelius' ability to sell its own products through post-transaction marketing and free-to-pay conversion offers, whereby consumers initially receive a free trial and are charged unless they cancel. Consumers must give their expressed agreement before being enrolled in a membership program and all terms must clearly be communicated.

Approximately $300,000 of the $1.3 million will be used to recover the state's litigation costs and monitor the restitution program.

Washington consumers are eligible for refunds under the settlement if they 1) enrolled in Identity Protect before Aug. 12, 2009, (the period when the state felt the ads were deceptive), 2) have not received full refunds and 3) have not used any member-enabled benefit.

Intelius will contact eligible consumers by mail and e-mail with instructions on how to submit a claim. The settlement does not apply to consumers in other states or those who purchased memberships from any third-party marketer.

Consumer Confusion Drove Intelius, Says Washington AG ...

FTC Halts Cross-Border Domain Name Registration Scam

August 10, 2010
The Federal Trade Commission (FTC) has permanently halted the operations of Canadian con artists who allegedly posed as domain name registrars and persuaded thousands of U.S. consumers, small businesses and non-profit organizations to pay bogus bills by leading them to believe they would lose their Web site addresses unless they paid. Settlement and default judgment orders signed by the court will bar the deceptive practices in the future.

In June 2008, the FTC charged Toronto-based Internet Listing Service with sending fake invoices to small businesses and others, listing the existing domain name of the consumer's Web site or a slight variation on the domain name, such as substituting ".org" for ".com." The invoices appeared to come from the businesses' existing domain name registrar and instructed them to pay for an annual "WEBSITE ADDRESS LISTING." The invoices also claimed to include a search engine optimization service.

Most consumers who received the "invoices" were led to believe that they had to pay them to maintain their registrations of domain names. Other consumers were induced to pay based on Internet Listing Service's claims that its "Search Optimization" service would "direct mass traffic" to their sites and that their "proven search engine listing service" would result in "a substantial increase in traffic."

The FTC's complaint charged that most consumers who paid the defendants' invoices did not receive any domain name registration services and that the "search optimization" service did not result in increased traffic to the consumers' Web sites.

Settlement terms

A federal district court judge in Chicago, Robert M. Dow, Jr., ordered a temporary halt to the deceptive claims and froze the defendants' assets, pending trial. The just-announced settlement and default judgment orders end that litigation.

The orders bar the defendants from misrepresenting: that they have a preexisting business relationship with consumers; that consumers owe them money; that they will provide domain name registration; and that they will provide "search optimization services" that will substantially increase traffic to consumers' websites. The defendants are also required to disclose any material restrictions or aspects of any goods or services they provide.

The settlement order, entered against defendants Isaac Benlolo, Kirk Mulveney, Pearl Keslassy, and 1646153 Ontario Inc., includes a suspended judgment of $4,261,876, the total amount of consumer injury caused by the illegal activities. Based on the inability of the settling defendants to pay, they will turn over $10,000 to satisfy the judgment. The default judgment order was entered against defendant Steven E. Dale and includes a judgment in the amount of $4,261,876.

Charges against Ari Balabanian and Data Business Solutions were dismissed by the court at the FTC's request.

FTC Halts Cross-Border Domain Name Registration Scam...

Suit: T-Mobile Places Limits on 'Unlimited' Data Plan

A class action lawsuit filed in California says that T-Mobile markets certain phone plans as offering unlimited data, but then caps data use once consumers are locked into a contract.

The suit, brought in Superior Court in Yolo County, says that advertisements for T-Mobile's Unlimited Web & E-mail plans, offered for both Blackberry and other brands of smartphones, promise the consumer access to an unlimited amount of data. The plans offer a discount on new phones if consumers agree to sign a contract.

Trent Alvarez, the suit's lead plaintiff, bought two smartphones last year, and signed a two-year contract for each. The sales representative who sold the plans to him expressly represented that the data plan [Alvarez] was to receive would be 'unlimited,' according to the suit.

But in May 2010, Alvarez received a text message informing him that, Your data usage in this billing cycle has exceeded 10GB; Data throughput [speed] for the remainder of the cycle may be reduced to 50kbps or less. Alvarez called T-Mobile to have the volume and speed limits removed, but a representative refused his request.

According to the suit, the limits render Alvarez's phones essentially useless for anything other than making or receiving phone calls and text messages.

Little warning to consumers

Alvarez's experience is typical, the suit says, of consumers who are likely to be mislead by T-Mobile's promise of 'unlimited' data.

The only warning given to consumers, according to the suit, is a statement on the very last page of [a T-Mobile] brochure, buried in minuscule type barely readable, [that] 'Your data session may be slowed, suspended, terminated, or restricted if you use your service in a way that interferes with or impacts our network or ability to provide quality service to other users '

T-Mobile isn't the first carrier to be accused of falsely advertising data plans as unlimited. In 2007, Verizon settled a suit brought by New York Attorney General Andrew Cuomo alleging that that carrier placed invisible limits on its plans that purported to offer unlimited data capabilities.

This settlement sends a message to companies large and small answering the growing consumer demand for wireless services. When consumers are promised an unlimited service, they do not expect the promise to be broken by hidden limitations, Cuomo said of the settlement, which required Verizon to pay $1 million to consumers whose accounts were terminated after they exceeded the undisclosed limits.

If Alvarez's suit is to be believed, T-Mobile's line was busy when that message came through.

The suit requests restitution for money consumers spent on smartphones and the accompanying plans and an injunction prohibiting further misleading advertising.

Suit: T-Mobile Places Limits on 'Unlimited' Data Plan...

Mariposa Botnet Creator, Operators Arrested


A two-year investigation of the creator and operators of the Mariposa Botnet by the FBI, in partnership with the Slovenian Criminal Police and the Spanish Guardia Civil is bearing fruit.

The Mariposa Botnet -- a network of remote-controlled compromised computers -- was built with a computer virus known as "Butterfly Bot" and was used to steal passwords for websites and financial institutions. It stole computer users' credit card and bank account information, launched denial of service attacks, and spread viruses. Industry experts estimated the Mariposa Botnet may have infected as many as 8 million to 12 million computers.

"In the last two years, the software used to create the Mariposa Botnet was sold to hundreds of other criminals, making it one of the most notorious in the world," said FBI Director Robert S. Mueller, III. "These cyber intrusions, thefts, and frauds undermine the integrity of the Internet and the businesses that rely on it; they also threaten the privacy and pocketbooks of all who use the Internet."

International effort

In February, the Spanish Guardia Civil arrested three suspected Mariposa Botnet operators: "Netkairo," "Jonyloleante," and "Ostiator," aka Florencio Carro Ruiz, Jonathan Pazos Rivera, and Juan Jose Bellido Rios. They are being prosecuted in Spain for computer crimes.

"The Mariposa case showed how the coordinated and joint actions of different international police forces, along with the efforts of the Internet security industry, have been able to face the global threat of cyber crime," said Maj. Juan Salom, commander of the Guardia Civil's Cyber Crime Division. "The cyber kingpins know that they are not invincible anymore because the global efforts of the FBI, Slovenian Criminal Police, and Spanish Guardia Civil have shown that it doesn't matter where or how they try to hide, they will be located and prosecuted."

Last week, the Slovenian Criminal Police identified and arrested the Mariposa Botnet's suspected creator, a 23-year-old Slovenian citizen known as "Iserdo." The work of the Slovenian and Spanish authorities was integral to this investigation, officials said.

"We are glad to cooperate with the United States; the FBI's assistance is invaluable and represents professional affirmation of our force," Slovenian Minister of the Interior Katarina Kresal and Director General Janko Gorsek, Slovenian Criminal Police, said in a statement. "This case shows that cyber crime issues call for international police cooperation that shouldn't be hindered by geographical borders. This partnership serves as a solid basis for future cooperation."

From 2008 to 2010, the Slovenian citizen created "Butterfly Bot" and sold it to other criminals worldwide. In turn, these criminals developed networks of infected computers -- botnets -- and the Mariposa variety from Spain was the most notorious and largest. In addition to selling the Butterfly Bot program, the Slovenian citizen developed customized versions for certain customers and created and sold plug-ins (add-ons) to augment the botnet's features and functionality.

"This case shows the value of strong partnerships among law enforcement agencies worldwide in the fight against cyber criminals", said FBI Cyber Division Assistant Director Gordon M. Snow. "Cyber crime knows no boundaries, and without international collaboration, our efforts to dismantle these operations would be impossible."

Mariposa Botnet Creator, Operators Arrested...

The Potential Pitfalls of Pre-Paid Calling Cards

July 29, 2010
For those who don't have cell phones, or those who need a cheap way to make international calls, pre-paid calling cards can be a convenient way to stay in touch. But these cards are not always a good deal.

The Federal Trade Commission (FTC) and the Federal Communications Commission (FCC) warn that hidden costs and other problems can leave consumers with less call time than they were promised.

When you're selecting a calling card, the FTC says you should always look first at the fees. Add them up and see what kind of dent they put in the card's value.

For other ways to avoid calling card pitfalls:

• Check whether the advertised minutes only apply if you make one call and not more.

• Find out whether the advertised minutes still apply if you use the "toll-free access" number rather than the "local access" number, and whether the advertised minutes can be used to call cell phones.

• Ask whether there is an expiration date for minutes.

• Make sure that the explanation of fees makes sense to you.

• If possible, select a card that comes with a toll-free customer service number.

• Consider buying a card of a small denomination first, because if something goes wrong, your loss is limited.



The Potential Pitfalls of Pre-Paid Calling Cards...

Electronic Payments Association Warns Of New Phishing Scam


The Electronic Payments Association says it has received reports that individuals and/or companies have received a fraudulent email that has the appearance of having been sent from NACHA.

The subject line of the email states: "Unauthorized ACH Transaction."

The email includes a link that redirects the individual to a fake Web page and contains a link that is almost certainly an executable virus with malware.

"Do not click on the link. The text, email, and the related website are fraudulent," NACHA warned in a statement.

NACHA said the fake emails look like this:


From: Information
Sent: Thursday, July 22, 2010 8:27 AM
To: Doe, John
Subject: Unauthorized ACH Transaction
Dear bank account holder,

The ACH transaction, recently initiated from your bank account, was rejected by the Electronic Payments Association. Please review the transaction report by clicking the link below:

Damaging emails

Security experts say consumers should be aware that phishing emails frequently have links to Web pages that host malicious code and software. Do not follow Web links in unsolicited emails from unknown parties or from parties with whom you do not normally communicate, or that appear to be known but are suspicious or otherwise unusual.

NACHA said it does not process nor touch the ACH transactions that flow to and from organizations and financial institutions. It also does not send communications to individuals or organizations about individual ACH transactions that they originate or receive.

If malicious code is detected or suspected on a computer, consult with a computer security or anti-virus specialist to remove malicious code or re-install a clean image of the computer system.

It's a good idea to always use anti-virus software and ensure that the virus signatures are automatically updated. Ensure that the computer operating systems and common software applications security patches are installed and current. Be alert for different variations of fraudulent emails.

Electronic Payments Association Warns Of New Phishing Scam...

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iPad Overheats in Sunlight, Suit Says

By Jon Hood
ConsumerAffairs.com

July 28, 2010
Don't take that iPad outside. A class action lawsuit filed last Friday claims that Apple's latest supposed wonder quickly overheats in normal environmental conditions.

The suit, filed in federal court in Oakland, California, says that the iPad turns off, sometimes after just a few minutes of use, when exposed to direct sunlight.

The iPad does not live up to the reasonable consumer's expectations created by Apple insofar as the iPad overheats so quickly under common weather conditions that it does not function for prolonged use outdoors, or in many other warm conditions, according to the complaint.

Consumers who sunbathe with their iPads are quickly greeted by a yellow warning sign and the caption iPad needs to cool down before you can use it.

The news probably didn't surprise tech junkies, who reported on the iPad's apparent fragility soon after it was released. Zach Honig, an editor for PC Magazine, was outside in New York for only ten minutes when his iPad shut down. Honig tweeted that a minute in the fridge was all it took to revive the tablet. (Whether putting your iPad in the refrigerator is a good idea is a topic open to debate, to say the least).

The suit is a potential ding in the armor of Apple's newest gadget, which sold 3.27 million units and generated $2.17 billion in the quarter ending June 10. The iPad was introduced to great fanfare in late January, with Apple CEO Steve Jobs touting it as creating a third category of device -- fitting between traditional notebook computers and smartphones like the iPhone and Blackberry.

And while it perhaps seems intuitive that an electronic device works less well in high temperatures, the suit potentially weakens the iPad's standing as a bona fide e-reader. Indeed, the complaint takes issue with Apple's contention that [r]eading on iPad is just like reading a book, pointing out that using an iPad is not 'just like reading a book' at all since books do not close when the reader is enjoying them in the sunlight or in other normal environmental conditions.

The lawsuit also threatens to extend a weeks-long rough patch for Apple. The tech king is still trying to recover from an embarrassing rollout of the long-awaited iPhone 4, which has been so plagued with reception problems that consumers have been forced to cover the exposed antenna with duct tape.

Apple is offering a bumper to iPhone owners free of charge, which it says will fix the problem. The saga prompted Motorola to poke fun in an ad for its new Droid X phone -- a photo of that device sits below the heading, No Jacket Required.

The complaint accuses Apple of throwing consumers to the wind in the name of corporate profits, contending that the company has clearly established a policy of accepting a certain amount of collateral damage as incidental to its business operations, rather than accept the alternative costs of full compliance with fair, lawful and honest business practices.

The suit, brought on behalf of everyone in the United States who bought an iPad, charges Apple with fraud, negligent and intentional misrepresentation, unjust enrichment, and breach of express and implied warranties.

iPad Overheats in Sunlight, Suit Says...

Government Says Consumers Free To 'Unlock' Their Cell Phones

If you're a Verizon wireless customer and want an iPhone, can figure out how to "unlock" its network safeguards, and are willing to void your warranty, the government says it's you legal right to do so.

In an official ruling, the Copyright Office of the Library of Congress ruled there's nothing in the law to prevent any mobile phone from being altered to work on a different network than it was intended.

Apple has an exclusive contract with AT&T; for the popular iPhone and has strongly discouraged consumers from "jailbreaking," the term applied to unlocking the phone's network feature. It has threatened legal action against those who do, though it has never followed through on the threat.

The Electronic Frontier Foundation (EFF) requested the ruling, as well as legal protections for artists who remix videos -- people who, until now, could have been sued for their non-infringing or fair use activities.

"By granting all of EFF's applications, the Copyright Office and Librarian of Congress have taken three important steps today to mitigate some of the harms caused by the Digital Millennium Copyright Act (DMCA)," said Jennifer Granick, EFF's Civil Liberties Director. "We are thrilled to have helped free jailbreakers, unlockers and vidders from this law's overbroad reach."

In its reasoning in favor of the jailbreaking exemption, the Copyright Office rejected Apple's claim that copyright law prevents people from installing unapproved programs on iPhones.

Jailbreak

"When one jailbreaks a smartphone in order to make the operating system on that phone interoperable with an independently created application that has not been approved by the maker of the smartphone or the maker of its operating system, the modifications that are made purely for the purpose of such interoperability are fair uses," the ruling stated.

"While some consumers may welcome the elimination of these copyright protections when considering new applications and features for their wireless devices, they still need to review the terms of service from their carrier and device manufacturer since altering the underlying source code may void the manufacturer's warranties and adversely affect how the device operates on a wireless network," said Michael Altschul, Senior Vice President and General Counsel of CTIA-The Wireless Association.

The new rules, of course, don't apply just to the iPhone. They also clear the way for jailbreaking of Motorola, Samsung or other manufacturers' phones, which may have exclusive apps. The operating system on Motorola's Droid X cannot be changed and Samsung's Captivate can install apps only from the Google and AT&T; Marketplace.

The bottom line of the government ruling, says EFF, is that the previous rules were not designed to protect consumers.

"The Copyright Office recognizes that the primary purpose of the locks on cell phones is to bind customers to their existing networks, rather than to protect copyrights," said Granick. "The Copyright Office agrees with EFF that the DMCA shouldn't be used as a barrier to prevent people who purchase phones from keeping those phones when they change carriers. The DMCA also shouldn't be used to interfere with recyclers who want to extend the useful life of a handset."

Government Says Consumers Free To 'Unlock' Their Cell Phones...

'Tabnabbing' Or 'Tabnapping' -- A New Twist On Phishing

July 12, 2010

Just when it seemed as though the various types of phishing attacks had been identified - up pops another that is even more sophisticated. Most commonly known as "tabnabbing," it is also called "tabnapping" or kidnapping of Internet tabs.

Phishing scams typically involve sending hoax emails to your computer in an attempt to steal your usernames, passwords and bank details. Often the sender will claim to be from your bank and will ask you to verify your bank details by clicking on a link contained in the email. The link directs you to a fake website which looks like your bank's website. Once you have typed in your login details, the criminals who set up the fake site have access to your information.

How it works

Tabnabbing does not rely on persuading you to click on a fake link. It targets Internet users who open lots of tabs on their browser at the same time and changes the way a legitimate site looks behind your back.

An inactive browser tab is replaced with a fake page set up specifically to obtain your personal data -- without you even realizing it has happened. Scammers can actually detect when a tab has been left inactive for a while and spy on your browser history to find out which websites you regularly visit so they know which pages to fake.

Here is an example: You open the login page for your online bank account, but then you open a new tab to visit another website for a few minutes. This has left the original tab unattended during this time. When you return to your bank's website, the login page looks exactly how you left it, but it is again requesting that you login. This is reasonable because you just assume that you have timed out on your original login.

What you don't realize is that a fake page was substituted and when you re-enter your username and password it is not for the official bank login but for the con artist. Once you re-enter your login information, you will be redirected to your bank's website since you never actually logged out in the first place, giving you the impression that all is well. Meanwhile, the con artist has just obtained your login information and can now login to your account without your knowledge.

Beating the scammer

Tabnabbing should be fairly easy to avoid as long as you are careful. North Dakota Attorney General Wayne Stenehjem offers five tips for protecting yourself:

• 1. Make sure you always check to be sure the URL in the browser address page is correct before you enter any login details. A fake tabbed page will have a different URL than the website you think you are using.

• 2. Always check to make certain the URL has a secure https:// address even if you don't have tabs open on the browser.

• 3. If the URL looks suspicious in any way, close the tab and reopen it by entering the correct URL again.

• 4. Avoid leaving open tabs that require you to type in secure login details. Don't open any tabs while doing online banking. Open new windows instead.

• 5. Don't log in on a tab that you have not opened yourself.

While this type of attack on your computer could potentially be devastating, it is relatively simple to keep yourself safe online. Follow the steps outlined above and if you question a URL, close out of the site and start over again. Or simply do not leave tabs open on the Internet.

'Tabnabbing' Or 'Tabnapping' -- A New Twist On Phishing...

Facebook Flops In ACSI E-Business Report

By James Limbach
ConsumerAffairs.com

July 21, 2010
Even though it's the most popular website in America, consumers don't like Facebook, according to the 2010 American Customer Satisfaction Index (ACSI) E-Business Report, produced in partnership with ForeSee Results.

The social networking site scored 64 on the ACSI's 100-point scale -- a satisfaction even lower than IRS e-filers. This puts Facebook in the bottom five percent of all measured private sector companies and in the same range as airlines and cable companies -- two perennially low-scoring industries with terrible customer satisfaction.

"Facebook is a phenomenal success, so we were not expecting to see it score so poorly with consumers," said Larry Freed, president and CEO of ForeSee Results. "At the same time, our research shows that privacy concerns, frequent changes to the website, and commercialization and advertising adversely affect the consumer experience. Compare that to Wikipedia, which is a non-profit that has had the same user interface for years, and it's clear that while innovation is critical, sometimes consumers prefer evolution to revolution."

Given the complaints about Facebook received by ConsumerAffairs.com, the low score should not come as a surprise.

"Why can't I communicate with a human who works for Facebook?" wonders Peter of Maridcao, Puerto Rico. "I have complained about a false profile which someone keeps putting up. For some reason FB can't shut down this person. Why do I have to suffer through this?"

Mohamed of Redmond, WA, tells ConsumerAffairs.com, "Facebook disabled my account without giving me any notification, and when I asked them why they did that, they refused to tell me the exact reasons. I asked them to delete all my data on their servers (since they disabled my access to it), but they also refused to do so."

First-time ratings

Social media websites were measured for the first time by ACSI, and the category includes Facebook, MySpace, Wikipedia and YouTube. Twitter was not included in the social media category because a disproportionate number of users access Twitter through third party applications other than the website Twitter.com. Wikipedia leads the category at 77, followed by YouTube at 73, Facebook at 64 and MySpace at 63.

"Social media has become too big to ignore, so we added it to our list of e-business measures," said Claes Fornell, ACSI founder and professor of business at the University of Michigan. "We are quite surprised to find that satisfaction with the category defies its popularity."

Google plunged seven percent, but continues to lead the portals and search engines industry with a score of 80. It is just the second time that Google ceded its top spot, as the "all others" category of search engine competitors jumped five percent to 82. Microsoft's Bing search engine made a strong first showing with a score of 77, trailed by Yahoo! (76), AOL (74), and Ask.com (73).

Rikva from Monticello, NY, has a gripe with Google. "My telephone number is listed in Google as Wal-Mart. I hope you understand that I receive constant phone calls," she writes ConsumerAffairs.com. "I am a busy mother of 12 children and I came to rest for the summer here in upstate New York. It is absolutely ruining my vacation."

Pablo from Salt Lake City, UT, tells ConsumerAffairs.com that his Dell XPS400 computer has all major components linked and set to operate with a Google toolbar that is built into his program and systems. "In other words," he writes, "I bought a 'Google computer set up with a Dell Logo.' If I delete the Google tool bar I loose Internet Explorer and many other features needed on my computer for it to work. I tried to delete the bar but there is a warning message saying your computer may not start properly if you remove these files... WHAT TO DO??"

"Google may be suffering from trying to be too many things to too many people, but it still has the most loyal following with 80 percent of its users citing Google as their primary search engine," said Freed. "That said, Bing's first measure is impressive and could put some pressure on Google. The new search engine is already making gains in market share and using clever marketing and advertising to distinguish itself from the market leader."

Fox shows strong

In the news and information category, FOX News now dominates its competition online as well as on TV. FOXnews.com debuted at the top of the industry with a score of 82, the highest score any news site has received in nine years of measurement. FOX News' cable news competitors MSNBC.com (74) and CNN.com (73) trail in satisfaction as well as ratings. All major news websites improved, including newspaper websites for USATODAY.com (+4 percent to 77) and NYTimes.com (+4 percent to 76).

Facebook Flops In ACSI E-Business Report...

Amazon.com Says E-Books Outselling Hardcovers

July 20, 2010
People who purchase books from Amazon.com apparently prefer to receive their reading material electronically. The online retailer reports e-books outsold hardcovers by 43 percent over the last three months.

The company also announced that sales of its Kindle device accelerated each month in the second quarter -- both on a sequential month-over-month basis and on a year-over-year basis.

"We've reached a tipping point with the new price of Kindle -- the growth rate of Kindle device unit sales has tripled since we lowered the price from $259 to $189," said Jeff Bezos, Founder and CEO of Amazon.com. "In addition, even while our hardcover sales continue to grow, the Kindle format has now overtaken the hardcover format. Amazon.com customers now purchase more Kindle books than hardcover books -- astonishing when you consider that we've been selling hardcover books for 15 years, and Kindle books for 33 months."

Bezos said the U.S. Kindle Store now has more than 630,000 books, including new releases and 106 of 110 The New York Times Best Sellers. Over 510,000 of these books are $9.99 or less.

E-book sales explosion

Over the past three months, for every 100 hardcover books Amazon.com has sold, it has sold 143 Kindle books. Over the past month, for every 100 hardcover books Amazon.com has sold, it has sold 180 Kindle books, the company said.

The e-book trend has been building over time. Amazon says it sold more than three times as many Kindle books in the first half of 2010 as in the first half of 2009. Industry data also reflect the e-book trend. The Association of American Publishers' latest data report that e-book sales grew 163 percent in the month of May and 207 percent year-to-date through May.

Amazon.com Says E-Books Outselling Hardcovers...

T-Mobile Settles Cramming Charges With Florida

When T-mobile customers in Florida started complaining about unauthorized charges showing up on their bills, the company said it wasn't to blame - it was simply passing on "sales" by third parties.

But after the Florida Attorney General's office intervened, T-Mobile has agreed to do more. The company has agreed to a settlement in which it will protect consumers from third-party "cramming," including charges for "free" ringtones and other cell phone content customers either did not order or did not realize would result in a monthly charge.

Florida Attorney General Bill McCollum said T-Mobile will continue its practice of issuing credits and refunds to consumers for unauthorized charges for third-party mobile content subscription purchases. As part of the agreement, the company will provide a clear and conspicuous notice to all consumers of their continuing ability to obtain refunds.

Cell phone content includes ringtones, music, wallpaper, horoscopes and other material that is often promoted by online marketers as "free," but ultimately ends up costing up to $19.99 a month. The charges appear on a subscriber's monthly wireless bill and are usually recurring. The bill charges often appear under indiscernible names such as "OpenMarket," "M-Qube" or "M-Blox."

Complaints

McCollum said a large number of complaints about cramming led to an investigation which revealed that thousands of Florida consumers had received these charges on their cell phone bills for mobile content downloads that they neither knowingly authorized nor wanted.

Prior to the investigation, T-Mobile offered its customers the ability to block third-party mobile content and to implement parental controls free of charge. The investigation and subsequent settlement have been negotiated by the Attorney General's CyberFraud Section of the Economic Crimes Division.

T-Mobile has agreed to continue using the standards previously established by the Attorney General's Office for advertising on websites, prohibiting the use of the word "free" without clear disclosure of the actual price and requiring all content providers and advertisers to clearly and conspicuously disclose the true cost of cell phone content.

These compliance standards, which include website design restrictions for online advertisers, will ensure consumers see and understand the terms and conditions of the purchase. T-Mobile will continue to enforce these standards through its contracts with all content providers and advertisers nationwide.

As part of the settlement, the company will pay a total of $600,000 to reimburse the state for the costs of its investigation and to help the Attorney General's Office fund the efforts of the CyberFraud Section as it continues working toward similar reform across the industry. The agreement was negotiated with full cooperation from T-Mobile.

Bill McCollum said T-Mobile will continue its practice of issuing credits and refunds to consumers for unauthorized charges for third-party mobile content ...

Don't Be Scared By 'Scareware'


We've all seen them -- pop-up messages telling you your computer is infected with a virus. To get rid of it, all you have to do is order the antivirus software being advertised.

Before you click, though, know this: few Internet security companies use ads to tell you about a virus on your computer. Most of these pop-ups are scams, and it's one of the fastest-growing types of Internet fraud today.

These scams have a name. They're called "scareware" because they try to frighten you into purchasing fake antivirus software with a seemingly genuine security warning. But if you do try to buy this program, it will either do nothing -- or it could compromise your computer by installing malicious software onto your system. And in some instances, you don't even have to click on the pop-up box; the software downloads automatically.

Dirty tricks

Cyber criminals often use notorious botnets -- networks of compromised computers under their control -- to push out their software. They'll also masquerade as legitimate Internet security companies and buy ads on other websites -- called "malvertising" -- but when consumers click on the ads to purchase the products, they are redirected to websites controlled by the bad guys.

Indications of a potential scareware infection include:

• Windows Update fails to run.

• Other legitimate security applications won't update.

• Certain website, especially Internet security sites, won't load.

Tracking them down

Many of these criminals operate outside the U.S., making investigations difficult and complex for the FBI and its partners. But there have been successes. Just this past May, for example, three people were charged in Illinois in connection with a scheme that caused Internet users in more than 60 countries -- including the U.S. -- to buy more than $100 million worth of bogus scareware software.

Two of the defendants, including an American, are accused of running an overseas company that claimed to sell antivirus and computer performance/repair software over the Internet. A third man operated the company's Cincinnati call center, which was responsible for technical and billing support to its customers (but in reality deflected complaints from consumers who realized the software didn't work).

Don't Be Scared By 'Scareware'...

Protecting Wireless Customers From Bill Shock

By Mark Huffman
ConsumerAffairs.com

July 12, 2010
When consumers sign up for a wireless plan, they expect to pay the same amount each month. But sometimes other fees kick in when they access additional services or exceed preset limits, and those fees can come as a shock.

"Rapidly changing technology, easy access to expensive wireless data services and complex billing practices regularly leave wireless phone customers with unexpected and extremely high bills," said Massachusetts Attorney General Martha Coakley. "Simple protections such as usage alerts and preset cut-off mechanisms that have long been standards in other industries should be adopted to better protect wireless customers from unexpected charges."

Coakley is asking the Federal Communications Commission (FCC) to require greater transparency and real-time notification to alert wireless phone users of their voice and data usage before charging them excessive fees outside of pre-set use plans.

Coakley's comments were filed with the FCC in connection with an FCC inquiry aimed at looking into whether it should adopt measures that would give wireless customers advance notice they were exceeding limits and could be facing much higher bills for calling, text or data usage.

Surprise!

According to a recent FCC survey on "the consumer mobile experience," one in six mobile telecommunications subscribers, or 30 million Americans, encountered unexpected charges and fees in their bills, commonly known as cell phone bill shock.

The biggest shock often comes with international roaming charges that can be hundreds of dollars. Kristina, of Alexandria, Va., recently took a cruise to the Bahamas and as a precaution, called her carrier, T-Mobile, to find out about charges. She said she was told that voice calls would carry a $2.99 per minute roaming charge and data would be billed at $15 per kilobyte.

"So I decided I would not use my phone for Internet at all," Kristina told ConsumerAffairs.com. "I made one call that was about 11 minutes and two other calls that were about four minutes. No Internet, no texting, no checking voicemails. My bill was $200 higher than normal."

Still receiving

The reason? Kristina did not turn off her cell phone. Though she wasn't "using" it, it was still receiving data. She said a T-Mobile rep explained that she paid a roaming charge anytime someone sent her an email or left a voicemail message. Had her carrier given Kristina a heads up that she was racking up changes, she might have been able to limit them.

Of the group of wireless consumers that experienced bill shock, 88 percent said their wireless provider did not contact them after their bill increased and 84 percent stated that the wireless provider did not contact them when they were about to exceed their allowed minutes, text allotment, or data usage limits.

More than one-third of consumers experiencing bill shock faced a bill increase of at least $50 and 23 percent of cell phone users experiencing bill shock faced a bill increase that was over $100.

To address the pervasive problem of unexpected or unknown wireless phone charges, Coakley requested that the FCC adopt what she called "simple common sense protections" that are already in place for wireless phone customers in the European Union. She said wireless carriers should be required to provide real-time usage alerts and pre-designated usage/rate caps, with the ability for a customer to override, at no charge to consumers.

"These types of regulations will provide consumers with more control over the services to which they subscribe and the bills for those services," Coakley said.

Protecting Wireless Customers From Bill Shock...

How To Turn Down The Volume On Those World Cup Vuvuzelas

June 17, 2010
Is there a more annoying sound on Earth than those horns you hear people blowing non-stop during the matches of the World Cup 2010 in South Africa?

The horns are called vuvuzelas, and they seem to be getting as much international coverage as the matches themselves.

Despite calls to ban the long plastic trumpets, the racket they make probably isn't going to diminish on TV broadcasts anytime soon.

Complaints about the horns' incessant buzzing are coming from nearly quarter: high-profile players (who can't communicate over the drone), concerns from health experts (who say the loud blaring may affect hearing loss), and claims by World Cup broadcasters that they've stepped up audio filtering to screen out the vuvuzela racket.

Fortunately, TV viewers who can't stand the noise have a few options.

Consumer Reports Blogger Nick K. Mandle recommends skipping the purported vuvuzela "filter." One apparent quick fix getting media attention promises to kill the noise of the vuvuzela using "phase cancellation." The makers of the Anti-Vuvuzela Filter (which costs about $3.50) instruct users to play the downloadable MP3 alongside their TVs speakers.

"Depending on the circumstances" says the sale site, "the resulting sound wave may be so faint as to be inaudible to human ears." CR says in its test, the noise just became twice as irritating.

Mandle says instead, go into your TVs sound settings and turn the treble all the way down. It won't eliminate the vuvuzelas, but it tones down their highest-pitch, buzzsaw-in-the-brain frequencies.

Some TVs with more advanced sound controls have equalizers that let you adjust various sound wave frequencies. Playing with them might bring the vuvuzela decibels down, though perhaps at the expense of hearing the commentators a bit less well.

One of the CR testers found that if the TV is hooked up to a surround sound system, the vuvuzelas could be almost eliminated by lowering the volume of the left and right speakers (which carry crowd noises) and pumping up the volume of the center speaker (which carries the commentators' voices) via the sound system's settings menu.

As a last resort, of course, there's the mute button.

Despite the horrendous sound, many fans have found that concentrating on the game itself makes the vuvuzelas far less of a nuisance.

How To Turn Down The Volume On Those World Cup Vuvuzelas...

Some Consumers Would Like To End Political Robo Calls

By Mark Huffman
ConsumerAffairs.com

June 8, 2010
With anti-incumbent fever sweeping the nation, this primary election season has been more active than most. That means millions of Americans have received automated telephone calls in recent days promoting a candidate or ballot initiative.

Some consumers, like Pamela of Pasadena, Calif., have had enough.

"For weeks, I've been receiving between four to ten calls per day regarding the primary elections," Pamela told ConsumerAffairs.com. "These are recordings so there's no opportunity to ask a question. They're commercials basically. My 92-year old mother can't take a nap! I'm very interested in the elections, and do my homework, but I don't want all these calls coming to my home day and night."

Even if Pamela were on the national Do Not Call list, it wouldn't stop the political robo calls. That's because when Congress wrote the law setting up the Do Not Call list, it exempted political calls, as well as charitable solicitations and surveys. But many people find political robo calls just as annoying as ones from telemarketers.

"I would like the Do Not Call list to extend to pre-recorded messages which serve no purpose," Pamela said. "There's no assurance of accuracy in these statements. In California many have been outright lies, and anyone who would vote for someone after listening to a recording, shouldn't be voting. Can anything be done?"

Some people are trying.

Shaun Dakin, the CEO and founder of Citizens for Civil Discourse, has set up a website to campaign for political calls to be included in those forbidden if one is on the Do Not Call list.

As a start, he is gathering names and numbers of consumers who want to opt out. He says they will be forwarded to the political parties, requesting they be voluntarily excluded. So far, he says, about 50,000 consumers have signed up.

"We work with candidates and advocacy groups to educate them on the lack of effectiveness of political robo calls and encourage them to use alternate channels to communicate with voters," Dakin said on his website.

Unless the law is changed, annoyed consumers will have to find a work-around. One anonymous poster on a SeattlePI.com forum offered this advice:

"I just put the phone down," they wrote. "I don't hang up, just put it down so I don't have to listen to them babble. That way at least they can't call someone else for the minute or so they think they are talking to me."

Some Consumers Would Like To End Political Robo Calls...

FCC Finds Less Wireless Industry Competition

May 20, 2010
If you've sometimes thought there's not a lot of difference in the deals you get from Verizon Wireless, Sprint, or AT&T, you're not alone. The Federal Communications Commission is openly questioning the amount of competition in the wireless industry.

In its annual report on the state of competition in the mobile wireless industry, the FCC finds there appears to be increasing concentration in the mobile wireless market. One widely-used measure of industry concentration indicates that concentration has increased 32 percent since 2003 and 6.5 percent in 2008.

"Specifically, the report confirms something I have been warning about for years -- that competition has been dramatically eroded and is seriously endangered by continuing consolidation and concentration in our wireless markets," said Michael Copps, one of the three Democrats on the Commission. "We are going to need an extra dose of vigilance going forward and use whatever policy levers we have available to ensure good outcomes for American consumers," he said.

The report found that providers continue to invest significant capital in networks, despite the recent economic downturn. One source reports capital investment at around $25 billion in both 2005 and 2008, while another shows that capital investment declined from around $25 billion to around $20 billion during the same period.

Because industry revenue has continued to grow, both sources show that capital investment has declined as a percentage of industry revenue over the same period, from 20 percent to 14 percent.

The report also tracks the changes in how consumers are using wireless services. At the end of 2008, some 90 percent of the U.S. population had some type of mobile wireless device.

More smartphones

Handset manufacturers have introduced a growing number of new smartphones -- 67 in 2008 and 2009 -- that provide mobile Internet access and other data services, and provide many of the functionalities of personal computers.

The report also shows that data traffic has grown significantly, with the increased adoption of smartphones and data consumption per device. Especially as mobile wireless broadband usage grows, access to spectrum becomes increasingly important for competition.

While many wireless service providers have access to significant amounts of mobile spectrum, most of the spectrum below 1 GHz, in both the cellular band and the 700 MHz band, is not widely held.

In mid 2009 the U.S. Government began an investigation of competition in the wireless industry. The FCC is currently considering ways to provide more spectrum to wireless companies to meet a growing demand for smartphones and other mobile devices.

FCC Finds Less Wireless Industry Competition...

FTC Shuts Down Notorious Rogue Internet Service Provider

May 19, 2010
At the Federal Trade Commissions request, a district court judge has permanently shut down 3FN, a rogue Internet Service Provider that the FTC said recruited, hosted, and actively participated in the distribution of spam, spyware, child pornography, and other malicious and illegal content.

The ISPs computer servers and other assets have been seized and will be sold by a court-appointed receiver, and the operation has been ordered to turn over $1.08 million in ill-gotten gains to the FTC.

In June 2009, the FTC charged that 3FN, which does business under a variety of names, actively recruited and colluded with criminals to distribute harmful electronic content including spyware, viruses, trojan horses, phishing schemes, botnet command-and-control servers, and pornography featuring children, violence, bestiality, and incest. The FTC alleged that the defendant advertised its services in the darkest corners of the Internet, including a chat room for spammers.

The FTC complaint alleged that 3FN actively shielded its criminal clientele by either ignoring take-down requests issued by the online security community, or shifting its criminal elements to other Internet protocol addresses it controlled to evade detection.

The FTC also alleged that 3FN deployed and operated botnets large networks of computers that have been compromised and enslaved by the originator of the botnet, known as a bot herder. Botnets can be used for a variety of illicit purposes, including sending spam and launching denial-of-service attacks. According to the FTC, the defendant recruited bot herders and hosted the command-and-control servers the computers that relay commands from the bot herders to the compromised computers known as zombie drones.

Transcripts of instant-message logs filed with the district court show the defendants senior employees discussing the configuration of botnets with bot herders. And, in filings with the district court, the FTC alleged that more than 4,500 malicious software programs were controlled by command-and-control servers hosted by 3FN. This malware included programs capable of keystroke logging, password stealing, and data theft, programs with hidden backdoor remote control activity, and programs involved in spam distribution.

The FTC charged that 3FNs distribution of illegal, malicious, and harmful content and deployment of botnets that compromised thousands of computers, harmed consumers and was an unffile:///home/jhood/caweb/news04/2010/05/ftc_3fn.htmlair practice, in violation of federal law.

On June 15, 2009 the court issued a preliminary injunction to prohibit 3FNs illegal activities and require its upstream Internet providers and data centers to stop providing services to 3FN.

The court has now ordered a permanent bar on the illegal activities of 3FN and its agents and has appointed a receiver and instructed him to liquidate the operations assets.

The defendants named in the FTCs complaint are Pricewert LLC, also doing business as 3FN.net, Triple Fiber Network, APS Telecom, APX Telecom, APS Communications, and APS Communication.

This case was brought with the assistance of NASAs Office of Inspector General, Computer Crime Division; Gary Warner, Director of Research in Computer Forensics, University of Alabama at Birmingham; The National Center for Missing and Exploited Children; The Shadowserver Foundation; Symantec Corporation; and The Spamhaus Project.

FTC Shuts Down Notorious Rogue Internet Service Provider...

States Pressure Topix.com to Stop Charging for Abuse Review

By Truman Lewis
ConsumerAffairs.com

May 17, 2010
Connecticut Attorney General Richard Blumenthal and 22 other state attorneys general are urging Internet message board host Topix.com to improve consumer protections and eliminate its $19.99 fee for priority review to eliminate abusive or inappropriate posts.

In a letter to Topix CEO Chris Tolles, Blumenthal and his colleagues expressed significant concerns with the Forums and Polls pages and the websites $19.99 fee to expedite review of inappropriate posts.

Topix.com, of Palo Alto, CA, describes itself as a top ten online newspaper destination, which encourages readers to post comments about news items or other matters of community interest. Topix LLC is a privately held company with major investments from Gannett Co., The McClatchy Company and Tribune Company.

Blumenthal said Topix should do more, and charge nothing, in exchange for enforcing its own terms of use intended to protect victims, particularly children, from online abuse.

We are calling on Topix to abandon its outrageous pay-to-police policy and I urge consumers to join us in telling Topix to stop exploiting pain and abuse on its site, Blumenthal said. Forcing victims to pay in exchange for promptly stopping abusive, obscene and harassing Internet posts is exploitive financial bullying. The perpetrators, not victims, should be charged this unconscionable fee for making false or abusive posts.

Topix earns a dime off of other peoples devastation -- making money from mistreatment when victims pay up to protect themselves or their children from online bullying and abuse. This backwards system must be stopped immediately to protect children and others -- as well as Topixs own reputation.

Our coalition is calling on Topix.com to do the right thing and stop a system that harms consumers twice -- first by the abusive poster and then by the unconscionable removal fee.

An initial investigation by Connecticut and Kentucky found that the Forums and Polls section of Topix is routinely used to post abusive, vulgar and obscene comments, often about children, in blatant violation of Topixs terms of service. The forums also appear to operate without moderators.

Blumenthal and Kentucky Attorney General Jack Conway first contacted Topix in February and asked that the website respond to their concerns and make changes. Topix proposed only minor changes, and failed to eliminate its pay-to-police fee.

Blumenthal and fellow attorneys general have asked Topix to:

• Eliminate the $19.99 fee for expedited review. Charging consumers $19.99 for an expedited review of abusive posts that violate the Topix Terms of Service is unconscionable. Topix should abandon the fee and develop alternative measures to screen and promptly remove abusive posts that violate their terms of service, including hiring additional personnel, if necessary, to timely review abuse reports.

• Improve disclosures regarding the feedback system. In addition to ending the $19.99 expedited review option from the flag abuse drop down link, Topix should make its feedback and flagging options more clear and concise so that consumers can understand how to protect themselves and their children.

• Reduce time for reviewing abuse reports. A 7-14 day turnaround time for reviewing abuse reports is inadequate. Topix should review complaints more promptly, as MySpace and Facebook have done -- within 72 hours for routine abuse reports and 24 hours for emergency reports.

• Improve screening of abusive posts. Abusive posts continue to dominate many of the forums. Topix should immediately revamp its technology to block improper posts and repeat offenders, and explore additional technological measures to block abusive and hateful posts before they are posted.

The attorneys general from the following states and jurisdictions have joined Connecticut and Kentucky in writing to Topix: Arizona, Arkansas, Guam, Illinois, Iowa, Kansas, Maine, Maryland, Mississippi, Montana, Nebraska, New Hampshire, New Mexico, North Dakota, N. Mariana, Ohio, Rhode Island, South Dakota, Tennessee, Virginia and Washington.

States Pressure Topix.com to Stop Charging for Abuse Review...

FTC Warns Against Interest Rate Reduction Scams



You pick up the phone on the second ring and wait for what seems like several seconds before someone responds to your greeting. But you find you aren't talking to a human, but a recorded sales pitch promising to lower your credit card interest rate.

The best advice, says the Federal Trade Commission (FTC), is to just hang up, saying most of these offers are scams. And consumers are being inundated with them, according to the FTC.

In a new consumer alert, Credit Card Interest Rate Reduction Scams, the FTC says consumers have just as much clout with their credit card issuers as these companies do. It urges consumers to avoid paying middlemen, and negotiate directly with the credit card companies.

The companies behind the sales pitches claim to have special relationships with credit card issuers. They guarantee that the reduced rates they offer will save you thousands of dollars in interest and finance charges, and will allow you to pay off your credit card debt three to five times faster. They claim that the lower interest rates are available for a limited time and that you need to act now. Some even use money-back guarantees as further enticement.

The FTC says the companies behind these robocalls can't do anything for you that you can't do for yourself -- for free. You have just as much clout with your credit card issuer as these companies, and you are just as likely to get turned down for a rate reduction regardless of their promises or supposed efforts to negotiate on your behalf. Indeed, FTC investigators found that people who pay for these services don't get the touted interest rate reductions, don't save the promised amounts, don't pay off their credit card debt three to five times faster, and struggle to get refunds.

Protect Yourself

The FTC says that if you're looking to reduce the interest rate you're paying on your credit card purchases, your best bet is to handle it yourself for free: call the customer service phone number on the back of your credit card and ask for a reduced rate. Be calm, patient and persistent. And if you are tempted by the promises in a rate reduction robocall, the FTC says hold off -- and hang up.

• Don't give out your credit card information. Once scammers have your data, they can charge your credit card for their own purchases or sell the information to other scammers. • Don't share other personal financial or sensitive information like your bank account or Social Security numbers. Scam artists often ask for this information during an unsolicited sales pitch, and then use it to commit other frauds against you. • Be skeptical of any unsolicited sales calls that are recorded, especially if your phone number is on the National Do Not Call Registry. You shouldn't get recorded sales pitches unless you have specifically agreed to accept such calls, with a few exceptions. See New Rules for Robocalls. • If your number is on the National Do Not Call Registry, a telemarketer may call you only if you have agreed to accept calls from the company the salesperson works for, if you have bought something from the company within the last 18 months, or if you have asked the company for information within the last three months. • To report violations of the National Do Not Call Registry or to register your phone number, visit DoNotCall.gov or call 1-888-382-1222.

FTC Warns Against Interest Rate Reduction Scams...

Apple Blaming iPhone Problems on Water Damage, Suit Says

By Jon Hood
ConsumerAffairs.com

April 17, 2010
A class action lawsuit filed Thursday says that Apple turns the tables on consumers whose iPhones suddenly stop working, blaming the problem on owner-inflicted water damage and forcing customers to settle for a discounted phone.

The suit, filed in the U.S. District Court for the Northern District of California, says that Apple uses an unreliable Liquid Submersion Indicator to deny warranty coverage out of hand, despite the existence of a more accurate indicator built right into the phone.

Apple's standard one-year warranty -- included in the purchase price of a new iPhone -- purportedly covers defects in materials and workmanship under normal use. When presented with a defective phone, Apple is required to repair the phone at no charge, replace it with a new phone, or refund the purchase price to the consumer.

The company offers an extended two-year warranty -- also known as the AppleCare Protection Plan -- for an extra $69.

As with most warranties, Apple's lists a host of conditions not covered by the agreement, including liquid spill or submersion.

Those exceptions provide a convenient excuse for a manufacturer to dishonor its warranty obligations, as most consumers who have ever tried to return something can attest. But Apple has taken the warranty bait-and-switch game to a whole new level, according to the plaintiffs.

The iPhone's headphone jacks contain a Liquid Submersion Indicator, designed to determine whether liquid has entered the device. The complaint quotes an Apple document as explaining that the Liquid Submersion Indicator is not triggered by heat or humidity that is within the product's environmental requirements described by Apple, and that corrosion, if evident may cause the device to not work properly.

More reliable technology available

According to the suit, Apple's policy requires employees to deny warranty coverage to any iPhone whose Liquid Submersion Indicator has been activated. But the plaintiffs contend that, given the corrosion disclaimer quoted above, the indicators can't be relied on with any reasonable degree of certainty to determine whether a phone has actually been damaged by liquid.

Rather, the suit contends, the indicators could be activated by cold weather and humidity that are within Apple's technical specifications, as well as other types of moisture that should not cause damage in any event -- such as a palm that becomes sweaty after a work-out.

Moreover, according to the complaint, iPhones are equipped with more-reliable internal Liquid Submersion Indicators, whose purpose is to assist Apple service personnel in verifying whether those devices have actually been damaged due to liquid spills or submersion. But, according to the plaintiffs, Apple's policy is to deny warranty coverage for any phone whose external indicators have been activated, without even checking to see if the internal indicators have likewise been triggered.

The complaint alleges that, in May 2009, Apple began offering out of warranty service to placate the large number of consumers who were denied warranty coverage for their broken iPhones. Under that program, consumers are offered a new phone for the reduced price of $199, and are not required to extend their wireless contracts. However, the plaintiffs say that under the out-of-warranty service option, consumers are required to relinquish their current iPhone to Apple without compensation.

Making matters worse, AT&T -- currently the sole wireless provider selling the iPhone -- refuses to offer insurance for the device. According to AT&T's website, insurance costs a mere $4.99 per month and covers phones that are lost [or] stolen, or that have fallen victim to liquid damage [or] mechanical or electrical failure after the manufacturer's warranty period has expired. Although such insurance would obviously cover the phones at issue here, AT&T asserts without explanation that Wireless Phone Insurance is not available for and does not apply to ... Apple iPhone (all models).

Constance of Stockton, CA wrote to ConsumerAffairs.com in February with the exact problem described in the lawsuit:

I purchased an Iphone two years ago. It stopped working and when I took it to the Apple store in Greensboro, North Carolina, I was told that it had water damage and I would have to pay 199 for a new one. I did not appreciate the customer service because after an argument with the customer service consultant, they informed me I was eligible for an upgrade which would cost me only 99. I purchase the new phone and after 6 weeks I had problems charging up my phone.

The suit alleges, among other things, breach of warranty, fraud, unjust enrichment, and violations of the Song-Beverly Consumer Warranty Act. The class is being represented by Fazio Micheletti LLP, a San Ramon-based law firm.

Apple Blaming iPhone Problems on Water Damage, Suit Says...

Beware Of Facebook Gift Card Scams



Facebook has begun warning its users to avoid bogus links and fan pages that offer free gift cards because they are scams aimed at stealing user identities.

Facebook Security says it tries to remove these links and pages as quickly as it can find them.

"Watch out for suspicious offers for free gift cards," the Web site warns. "We've been removing groups and Pages that promise free gift cards, but instead trick people into entering information or spamming their friends. If you come across one, report it to us immediately."

The schemes usually work this way: a "friend" writes on your wall telling you about the gift card offer. Usually the alleged gift cards are for well-known retailers like Best Buy or Ikea. The user is then directed to a third-party Web site where they are told to fill in all sorts of personal information -- sometimes even a debit or credit card number.

Afterward the victim is directed to the actual site of the retailer, a move presumably to lull the victim into thinking the offer is legitimate. However, by that time the scammer has all the information he needs to do some real damage.

PC World reports that a bogus $1000 Ikea gift card offer drew more than 70,000 Facebook users to a scam page before Facebook Security discovered it and took it down. Victims are usually alerted through spam, but also by legitimate "friends" who have been taken in by the scheme in a story today.

When criminals gain access to a Facebook account, they usually post spammy comments on friends' Walls, or send spammy messages through Inbox or Chat," the Web site said. "Don't click on strange links in posts or messages, even if they're from friends."

If it seems weird for an old friend to write on your Wall or send you a message, Facebook cautions, it's possible that the person's account has been taken over by a spammer. As always, be particularly cautious of posts or messages that contain misspellings or use bad grammar.

Facebook has begun warning its users to avoid bogus links and fan pages that offer free gift cards because they are scams aimed at stealing user identities...

Latest Phishing Scam Relies On Telephone Calls


By now, most Internet-savvy consumers are wise to the spam emails that look like they are from a bank or financial institution, warning that prompt action is needed to avoid losing access to an account.

Usually that "prompt action" is supplying your date of birth, social security number, and all manner of personal information that could be used to steal your identity. When we see these emails, most of us simply ignore or delete them.

So scammers appear to have reverted to an old fashioned way to phish for information. They pick up the phone and call victims. In Pennsylvania, Attorney General Tom Corbett is warning his state's residents to be on the look out for these kinds of phishing calls.

"These bogus 'security alerts' typically warn that credit card or bank accounts may have been compromised and ask consumers to respond by 'confirming' or 'verifying' their account numbers," Corbett said. "The sole purpose of these calls is to convince unwary victims to reveal their account numbers and passwords so that thieves can steal money from their bank accounts or make large purchases with their credit cards."

Corbett said identity thieves are always looking for ways to disguise their schemes and reach out to new potential victims. In the latest scam, they use live operators and automated calls disguised as communication from banks, credit card companies or other legitimate businesses.

'Account security'

Corbett noted that the Attorney General's Bureau of Consumer Protection has been receiving an increasing number of complaints about unwanted "account security" calls and messages all across the state.

He pointed out that legitimate businesses will not call or message consumers asking them to provide their entire account number, password or PIN number -- so any request for that level of detailed personal information should be a clear warning sign of a scam.

"While some businesses may contact consumers to alert them about potential problems with their accounts, they will not ask individuals to divulge all of their account information by phone or email," Corbett said. "If you do receive a message asking for detailed account information, contact your bank or credit card directly -- using the customer service hotline printed on your card or monthly statement -- to report the scam attempt and also to verify that your account is secure."

Corbett said that any consumer who suspects they have accidentally divulged personal information in response to a scam should immediately contact their bank or credit card company to stop any unauthorized withdrawals or charges to their accounts.

Usually that "prompt action" is supplying your date of birth, social security number, and all manner of personal information that could be used to steal yo...

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Feds' Dream of Universal Broadband a Nightmare for Broadcasters

Analysis by James R. Hood
ConsumerAffairs.com

March 15, 2010

Talk about infrastructure and most of us think of bridges, roads and so forth. But for most of the past 100 years or so, the infrastructure that has budged the needle on the nation's econometer is the communications infrastructure. In an global information economy, after all, nations lacking a robust communications network are at a serious disadvantage.

It's popular to dismiss government regulation as something that holds back economic progress -- but sometimes it works the other way. Look back a century or so and the lack of a nationwide telephone network was a big problem not only for rural dwellers but for Sears, Roebuck & Co. and other budding etailers dreaming of the day when customers could order a new wheel barrow by placing a simple telephone call.

The ever-encroaching federal government and pointy-headed state bureaucrats got into the act and before you knew it, telephone companies had to provide a minimum level of service throughout the area they were licensed to serve -- and had to connect every caller to every other potential caller. We take that for granted now, but it's a lot more complex than it sounds.

As is customary in governmental circles, various fees and taxes were imposed on telephone service. Sure, some went to fight the Spanish-American War but others supported the Universal Service Fund which subsidized service in sparsely-populated and geographically-challenged regions.

Pretty soon, no one thought it remarkable that every wide spot in the road had a telephone booth. Some even had two.

Similar government "intrusions" helped establish radio and television broadcasting as sustainable businesses that provided news and entertainment but, equally important, kept the economy humming by whetting folks' appetites for shiny new cars and shiny big teeth.

And as everyone knows by now, the packet-switching that is at the heart of the Internet was dreamed up by the Pentagon agency known as DARPA.

Third World

And even though tea sippers and coffee gulpers alike are still suffering indigestion from the bail-out of the nation's financial services sector, the feds are up to their old tricks again. This week, the Federal Communications Commission (FCC) -- an agency with a past so checkered it could be used as a chess board -- is set to roll out a new broadband policy that's likely to be as far-reaching in its societal and economic impact as the telephone network, transcontinental railroad and Interstate highway system combined.

Simply put, the United States today is a Third World country when it comes to telecommunications. Those who live in hollers, on mountaintops or way out yonder on some wind-swept prairie probably have telephone service but it's not very likely they'll have broadband Internet service or a usable 3G cell phone signal. Dial-up was OK a decade or two ago but is woefully inadequate today, as the Web moves increasingly to video and other bandwidth-hungry applications that entertain, inform and employ us.

Even in densest Manhattan, Chicago or San Francisco, finding an available Wi-Fi connection can be tricky. It can get pretty dull sitting around the dentist's office with nothing to read but 1998 Road & Track magazines.

Although it's not being officially released until Tuesday, much of the FCC's plan has already leaked out, as things tend to do in Washington, regardless of the state of the infrastructure. The goal is to bring affordable broadband to the 93 million Americans who don't have it. Among the highlights:

• Raising Internet speeds to 100 megabits per second, 25 times the current average;

• Blanketing the country with wireless broadband; and

• Building a nationwide emergency communications system for police, fire and government;

One ox goared

Those familiar with the radio frequency spectrum will ask where all this wireless data fits into the already-crowded airwaves. The FCC's answer is to lop off a big chunk of spectrum now used by television broadcasters.

Television, after all, is so 20th Century. It's a one-way street. Nothing interactive about it. It's not the least bit sticky. This view, needless to say, doesn't go down too well over at Channel 5 but the writing is already on the wall for broadcasters, who no longer enjoy watching the dismal slide of newspapers into penury, now that radio and television advertisers are following print advertisers to the Web.

Chances are something will be worked out to comfort the broadcasters, a well-organized lobby if ever there was one. Most likely, the spectrum space will be auctioned off to telecom and broadband providers, with a sizeable slice of the proceeds going to the broadcasters.

With Congress and much of the electorate in a self-induced frenzy over health care legislation, it's likely the FCC's dream -- or pipe dream, if you prefer -- won't be widely noted. An optimist might say that would increase its chances of passing into reality. Given the enormous benefits that it could produce, that would be about the best outcome one could hope for.

Feds' Dream of Universal Broadband a Nightmare for Broadcasters...

Are You Ready For 3D TV?


If you haven't yet purchased a high definition TV, you're in luck. The HD, 3D TV sets are here.

Samsung and Panasonic have started selling their 3D sets this week while Sony's version hits the market this summer. But if you showed caution in the face of HDTV, it might be prudent to continue that caution. As with any new technology, there are bound to be glitches.

Cheaper flat screen TVs, for example, continue to be the source of constant complaints. One of the most common complaints is with the power supply. Many simply go dead after two or three years of use. Other consumers, like Frank, of Monroe Township, N.J., still have power but no picture.

"I have a Samsung LCD TV, Model LNS4692DX/XAA. With just 2.5 years of use I have audio with no video," Frank told ConsumerAffairs.com. "After looking into the problem on the Internet I came across hundreds of people posting the same problem with the same model number."

Though Samsung draws scores of complaints about its sets, so do most other low-priced manufacturers, including Vizio and Polaroid.

Samsung will employ some of the basic technology in its 3D sets that it uses in its current flat screens; that is, 3D sets will include LED, LCD and plasma screens. What's new is an optional Blu-ray player and upgraded speakers.

Samsung's 3D LED sets include the C7000, C8000, and C9000 series with screen sizes ranging from 40 inches to 65 inches. The cheapest 3D set will cost $2,000 while the top of the line will set you back $7,000. The C7000 series starts shipping right away, while the C8000 and C9000 models won't be available until next month.

Samsung's 3D sets with LCD screens will be available in May, beginning with a 46-inch screen model for $1,700. The 3D plasma TVs range from 50 inches to 63 inches, with prices from $1,800 to $3,800. They also will ship in May.

Samsung's 3D Blu-ray player offers surround sound, high-definition 1080p video playback, and eight speakers. The system will cost $900.

Partnering with Best Buy

Panasonic is partnering exclusively with Best Buy to sell its new line of 3D sets and is leading off with a 3D TV bundle for $2,900. It includes a 50-inch plasma screen set with 3D compatible Blu-ray player and one pair of 3D glasses. The company later plans to roll out 54, 58, and 65 inch versions of the bundle later in the year.

As with any new technology, early adopters may make up the lion's share of the market. For one thing, there is very little 3D content available for viewing, though broadcast networks may adopt 3D more quickly than they did HD. There's also the little issue of trust.

Experience shows that the more complex an appliance is, the more things there are to go wrong. It's hardly ever basic washing machines that break down, for example, it's usually the top of the line, with all types of programmable features, that produce the complaints from consumers.

Judging from the complaints received at ConsumerAffairs.com about TV set manufacturers, is there any reason to believe that 3D sets will perform more reliably than the current generation of flat screens? Most consumers may not want to spend $3,000 or more to find out.



But if you showed caution in the face of HDTV, it might be prudent to continue that caution. As with any new technology, there are bound to be glitches....

VoIP Users Still Voice Frustrations at Quality, Service


You've probably seen commercials on TV for Magicjack and wondered how a company could offer telephone service for as little as $19.95 a year. It's because it's not really telephone service in the traditional sense.

Like Vonage, Magicjack uses Voice over Internet Protocol (VoIP) technology, riding piggyback on the Internet instead of relying on a telecom network. Magicjack customers are assigned a telephone number and receive a phone jack that plugs into the USB port of their computer.

Despite the price, which is well under $2 a month, there are a number of dissatisfied customers.

"I bought a Magicjack and it worked for a couple of weeks," Monica, of Chattanooga, Tenn., told ConsumerAffairs.com. "Then when I would go to use my phone, there would be no dial tone. I have chatted with them twice and the solutions they give me work for a day. The next day, no dial tone again."

Susan, of Marysville, Ohio, also reports quality problems.

"I purchased the product and received it, only to have people I called inform me that they couldn't hear me, my voice kept breaking up, their phone didn't ring when I called using the product and in the middle of several calls, the product just quit working, she said.

Giant pop-up

Still others complain that the price of using the inexpensive Magicjack is having a large pop-up ad for the company launch on your computer screen every time you make a call.

"Whenever I open my computer, anticipating the gorgeous picture I put on my desktop, I am assaulted with a big Magicjack ad immediately," Anna, of Tallahassee, Fla., told ConsumerAffairs.com. "Not one of my other many programs has the audacity to perform this extremely rude behavior. And it won't go away! It is in the way of everything I do!"

Not everyone, of course, experiences these problems. James Limbach, a reporter for ConsumerAffairs.com, has been using a Magicjack as a secondary line for a couple of years now and is still fairly satisfied with it.

"It's generally good," Limbach said. "Sometimes I have to redial, but it works the first time about 90 percent of the time."

Limbach also said he has never seen the Magicjack pop-up that others have reported. He purchased his unit in 2008.

He does note that it sometimes takes several attempts to launch the program. For that reason alone, he says, he might not use Magicjack if he had to pay much more than $19.95 a year.

In researching this story, we found that ConsumerAffairs' main telephone number is provided by Vonage and an official of the Web site said there has never been an issue with quality, reliability or billing. The site also uses Skype, primarily for overseas calls, as well as Google Voice, landlines from Verizon and cell phones from every major provider.

"Cell phones are amazingly expensive compared to every other form of telecommunications," said the consumer site's president, Jim Hood. "They're the bottled water of the communications business. VoIP is tap water."

Alternatives

Alternatives in the VoIP sector can be more expensive, and are not immune to unhappy customers. Vonage costs $25.99 a month for unlimited local and long distance calls. But consumers report issues with it too.

"The service never works properly," Paulette, of Detroit, told ConsumerAffairs.com. "I have spent many hours on the phone with them to try to resolve the issue."

Skype, based in Luxemburg, offers VoIP services, as well as video calls, and its basic cost is in line with Magicjack's. But it, too, draws its fair share of consumer complaints, mostly for its business practices instead of its technical performance.

"Skype made five unauthorized transactions through Paypal directed ACH out of my bank, each costing $25 dollars," Junart, of Dallas, told ConsumerAffairs.com.

No matter which VoIP service you try, it might not be as reliable as the traditional telephone services most consumers grew up with and now take for granted.

It's important to remember that the quality and reliability of VoIP service depends on your local Internet connection. If you have a slow or noisy DSL line, no VoIP service will work very well. VoIP usually won't work at all with satellite Internet connections or dial-up Internet services.

Nor should you rely on VoIP for emergency 911 service. Vonage and some other VoIP providers say they provide 911 service but others, like Skype, say very clearly that they are not a substitute for a landline and should not be used for emergencies.

Consumers need to decide for themselves whether the low cost and added flexibility of VoIP is an acceptable trade-off for possible reliability issues. A wise choice would be to try to VoIP service for a month or two before getting rid of any other telephone service you might have.

VoIP Users Still Voice Frustrations at Quality, Service...

Verizon Wireless Expands Data Charge To All 3G Phones

Up until now, just owners of LG enV TOUCH and the Samsung Rogue phones on the Verizon Wireless network were required to purchase the 25 megabyte data package for $9.99 a month. Starting Monday those customers who activate new LG Chocolate Touch, LG enV3, LG VX8360, Motorola Entice W766, Nokia 7705 Twist and Samsung Alias 2 phones will also be required to purchase it.

The $19.99 data package option for 3G Multimedia phones has been discontinued.

Customers using Simple Feature phones (Mobile Web-enabled) will continue to pay $1.99 per megabyte or choose either the $9.99 or $29.99 data packages. The consumer data package for 3G Smartphones such as BlackBerry, Windows Mobile or Android devices will remain at $29.99 per month.

The changes are part of new monthly service plans for the carrier that all go into effect January 18, 2010. At that time, customers may sign up for a new Nationwide Unlimited Talk plan that allows customers to call anyone in the United States for $69.99 monthly access or a Nationwide Unlimited Talk & Text plan to call and send text, picture and video messages to anyone in the country for $89.99 monthly access.

In addition, Verizon said Nationwide Family SharePlans will also have new unlimited options. Nationwide Unlimited Talk Family SharePlans will be $119.99 monthly access while the Nationwide Unlimited Talk & Text Family SharePlans will be $149.99 for monthly access.

All Family SharePlan pricing includes the first two lines of service. Standard text message rates will apply for customers on the Nationwide Unlimited Talk plans who do not sign up for a text messaging bundle.

Verizon Wireless will also offer customers new prepaid plans beginning Jan. 18. For those who prefer pay-as-you-go options, but want unlimited calling and texting, new Monthly Unlimited Prepaid plans will $5 more per month than contract plans. Prepaid Monthly Unlimited Talk is now available for $74.99 per month while contract subscribers pay $69.99 for the same unlimited calling option.

Prepaid Monthly Unlimited Talk & Text will be available for $94.99 per month. The 450- and 900-minute Monthly Prepaid plans will also be available for $5 more per month than comparable postpaid plans.

Today's announcement will not have an impact on existing customer contracts, although Verizon said customers may choose to move to any of the new plans. The company allows customers to change their service plans at any time without penalty or contract extension.



Verizon Wireless Expands Data Charge To All 3G Phones...

Blackberry Data System Down for Several Hours

It was a case of withdrawal for Blackberry addicts Thursday morning when they turned on their phones and there was no familiar vibrating motion or flashing red light indicating new email.

The system was apparently restored, at least in parts of the country, around 10:00 am PST Thursday.

Users nationwide reported being unable to access email, though the devices still made and received voice calls and can be used to access the Internet through Verizon's mobile broadband service.

When a Verizon customer service representative in Virginia dialed into the system and punched in a customer's phone number, an automated response said the data server was down, but that crews were at work attempting to fix the problem.

The tech blog CrunchGear reports the outage affected all of the U.S. and Canada.

Blackberry users weren't the only ones experiencing technical trouble Thursday. Many Sprint mobile users reported problems with the SMS text system. Many customers reported getting a message saying "The message could not be delivered due to a network setup error. Please contact Customer Care. Error 2112."



Blackberry users weren't the only ones experiencing technical trouble Thursday. Many Sprint mobile users reported problems with the SMS text system....

GAO: FCC Needs to Improve Oversight of Wireless Industry

The Federal Communications Commission (FCC) is the primary government agency tasked with overseeing the massive American telecom industry -- and a report released today by the Government Accountability Office (GAO) claims that the FCC is not doing as good a job as it should of protecting consumers.

According to the GAO's survey, "most wireless consumers with problems would not complain to FCC and many do not know where they could complain...without knowing to complain to FCC or what outcome to expect if they do, consumers with problems may be confused about where to get help and about what kind of help is available."

The GAO said the FCC lacked specifically defined goals and measurements for any complaint processing efforts it undertakes,and does not do enough to investigate or enforce issues arising from complaints. Consequently, the agency said, the FCC is ill-equipped to recognize potential trends or consumer problems.

Although the FCC receives between 20,000 and 35,000 complaints a year from consumers relating to wireless service, the agency said its chief role was to act as a facilitator between the consumer and the company, and that it lacked direct authority to enforce complaint issues with a carrier. The FCC said it had solicited public comment on how it can improve complaint-adjudication processes, such as including its contact information on billing statements and solicitations sent by carriers for consumers to use.

The GAO had previously reported on the FCC's failure to follow through on addressing its vast database of consumer complaints in March 2008.

Termination fees remain a sore spot

The GAO also found that of the 1,143 wireless customers surveyed, 42 percent would switch their contracts if they did not have to pay a hefty contract termination fee to do so. The agency noted that conflicting rulings at the state and federal level meant there was no clear guidance for how termination fees could be regulated, "thus the issue remains unresolved."

Chris Riley, policy counsel at media watchdog group Free Press, said the report confirmed that carriers were using termination fees to lock customers into long-term contracts, whether they like it or not.

"Consumers are being forced to pay huge fees that the phone companies just can't justify," Riley said. "The FCC must act and put a stop to this anti-consumer practice that threatens innovation and competition in the mobile marketplace."

Other findings

The GAO also found that:

• State regulatory authorities had difficulty addressing wireless customer complaints, because of a tangle of rulings and lack of guidance from the FCC on what authority they have to enforce issues against wireless carriers.

• 34 percent of the wireless customers surveyed received unexpected charges on their bills, and 31 percent said they had difficulty reading their bill accurately.

• 21 percent of those surveyed were dissatisfied with their wireless carrier's customer service response when they wanted to address a problem.

GAO: FCC Needs to Improve Oversight of Wireless Industry...

Sprint Nextel Agrees To Restitution For Minnesota Customers

The length of cell phone contracts and early termination fees lie at the crux of a recent standoff between the State of Minnesota and Sprint Nextel. In this case, the telecom provider is the one that blinked.

Minnesota Attorney General Lori Swanson says consumers who believe that Sprint Nextel extended their cell phone contracts without their permission or did not disclose either the length of the contract or the applicable penalties for early termination may file a claim for monetary relief under a consent judgment she worked out with the company.

Sprint Nextel requested that at least 439,000 Minnesota residents pay early termination penalties between July 1999 and December 2008. An additional 450,000 customers are currently under contracts with Sprint Nextel which contain early termination penalties, and those customers would be eligible to file claims if their contracts were extended without permission or full disclosure.

Swanson filed a lawsuit against Sprint Nextel in September, 2007 alleging that the company often extended consumers' existing contracts for up to two years without their permission when they made small changes to their wireless phone service, such as adding or decreasing minutes or adding or dropping a family member.

The lawsuit alleged that Sprint Nextel charged penalties of up to $200 per line if the consumer cancelled the extended contracts. A review of ConsumerAffairs.com's complaint database shows widespread complaints about contract extensions and early termination fees by all wireless providers, including Sprint Nextel.

'Secret extensions'

"Sprint Nextel customers whose contracts were secretly extended when they made small changes to their plans or who were charged hidden early termination penalties now have a way to request their money back or for the penalties to be waived," Swanson said.

Minnesotans who became customers of Sprint Nextel after September 26, 2001 may submit a claim to the Attorney Generals Office if they believe that:

• Sprint Nextel enrolled them in a contract or extended their contract without their authorization or knowledge; or

• Sprint Nextel did not adequately disclose the length of the wireless contract or contract extension or the early termination fees that applied.

Applicable relief may include, among other things:

• A refund of the early termination fees and any related taxes and fees the consumer paid as a result of terminating the contract.

• A reversal of any early termination fees and any related taxes and fees that the consumer was charged but did not pay, including the reversal of any adverse reporting to any credit reporting agency.

• A release of the consumer from the terms of their current wireless contract without penalty.

The consent judgment bans Sprint Nextel from extending consumers' wireless contracts without their consent and requires the company to make clear and conspicuous disclosures about contract lengths and applicable early termination penalties and to document the consumers consent to the new contract.



Sprint Nextel Agrees To Restitution For Minnesota Customers...

Vonage To Pay $3 Million To Settle Consumer Complaints

Internet telephone provider Vonage says it will pay $3 million to 32 states who sued the company on behalf of consumers. Without admitting to any wrongdoing, Vonage also said it would give refunds to affected consumers and change its business practices.

Since 2002, Vonage has offered a Voice over Internet Protocol (VoIP) service, which allows for telephone voice transmission over a high-speed Internet connection. In its newspapers, TV, direct mail and Internet advertising, Vonage failed to clearly communicate to prospective customers that they must be equipped with high-speed Internet in order to use its services.

Many customers, particularly senior citizens, were not clearly informed of this requirement and were unable to use the service. Yet Vonage required them to pay activation/cancellation and return shipping fees for computer-related equipment. Todays agreement makes full and clear disclosures a priority requirement.

Similarly, the states argued that Vonages "free trial" or "risk free" offers put many at a disadvantage when they attempted to cancel their service at the close of the trial period. Customers who chose to cancel had to do so by telephone and receive a "return authorization number" before returning Vonage's VoIP computer device. Many customers reported unreasonably long wait times before reaching a company representative.

Through this settlement, Vonage is held accountable for customer service and advertising practices that led Ohioans to be confused and dissatisfied," said Ohio Attorney General Richard Cordray. "As a result, consumers who had an issue with the company as far back as 2004, still have the opportunity to get a refund by filing a complaint with my office within the next 120 days."

Consumer confusion

Customers who thought they had canceled the service complained that they continued to receive monthly bills from the company. Others asserted that Vonage debited funds from their checking accounts, even after the customers attempted to cancel their Vonage service. The assurance of voluntary compliance prohibits Vonage from billing any customers after they have canceled within the free trial period.

"This agreement is designed to ensure that Vonage fully discloses all of its fees and conditions for the services it offers," said Illinois Attorney General Lisa Madigan. "It is also a helpful reminder that consumers should always read the fine print before signing up for a telecom service to search for any extra costs associated with enrolling in programs or services."

The states' investigation found that Vonages use of the phrase "free trial" was deceptive. Despite free service offers, Vonage charged many customers activation fees, shipping and handling fees, taxes, universal service fees, regulatory recovery fees and emergency 911 fees, none of which were clearly disclosed in advance.

The agreement prohibits future misrepresentations of service by Vonage and requires the company to fully and clearly disclose all terms associated with promotional offers. Vonage must also ensure that customers who accept the free trial offer receive the VoIP computer adapter within the promised seven to 10 days. Many complained of not receiving the device until near the end of the trial period, which restricted their ability to try out the service over time.

Under today's agreement, Vonage is also paying refunds to eligible customers who experienced problems and have not already received refunds.



Vonage To Pay $3 Million To Settle Consumer Complaints...

AT&T Missouri Pays $1.4 Million To Settle False Claims Suit

AT&T Missouri, which used to do business as Southwestern Bell Telephone L.P., has agreed to pay the U.S. Government $1.4 million as part of a settlement of a civil lawsuit alleging that the company violated the False Claims Act in connection with the Federal Communications Commission's E-Rate program.

The U.S. Department of Justice, which brought the action, announced the settlement.

The E-Rate program, which Congress created in the Telecommunications Act of 1996, provides funding for needy schools and libraries to connect to and utilize the Internet. Under the program, which is supported by fees collected from telephone users, schools apply for funds to pay for hardware and monthly connectivity service fees.

The government contended that AT&T Missouri provided false information to the E-Rate program and otherwise violated the program's requirements by engaging in non-competitive bidding practices for E-Rate contracts. The Justice Department further alleged that AT&T Missouri employees colluded with officials in the Kansas City, Mo., School District to award contracts to the company, extended contracts in violation of E-Rate rules and provided meals and other inducements to school district employees.

The government previously filed suit against and settled with the Kansas City, Mo., School District.

These allegations arose from a False Claims Act lawsuit filed in Missouri federal court by American Fiber Systems Inc., which submitted an unsuccessful bid to the Kansas City, Mo., School District for the E-Rate contracts that were awarded to AT&T Missouri.

The False Claims Act allows private parties to bring fraud claims on behalf of the United States and to share in the proceeds of any recovery. American Fiber Systems Inc.'s share of the settlement will amount to $195,000.

"The E-Rate program provides critical support for Internet access to the most under-served schools in the nation," said Tony West, Assistant Attorney General for the Department of Justice's Civil Division. "Working with our partners at the FCC's Office of the Inspector General, the Department of Justice is committed to ensuring that this important program, which benefits our neediest children, not be misused by those seeking to defraud the public."



AT&T Missouri Pays $1.4 Million To Settle False Claims Suit...

Do Not Call List Doesn't Stop All Telemarketing Calls

The whole purpose of the national Do Not Call list is to prevent unwanted telemarketing calls. If you're still receiving these calls, you may be wondering why.

For starters, make sure you are actually signed up on the official list. You can visit www.donotcall.gov and verify that your number is actually registered. Registration for the service is free, and consumers should notice fewer unwanted calls within the first month of signing up.

Unfortunately, being on the Do Not Call list isn't going to stop all telemarketing call, although it will block most of them. However, charity organizations can still call you. So can political organizations.

Also, if you have had previous contact with a company, the Do Not Call list will not stop them from calling you.

For example, if you sign up to win a free car at the mall, in many cases youre also giving the business permission to contact you. Sometimes, even answering questions in a survey gives a business to follow up with a sales pitch.

Ohio Attorney General Richard Cordray says consumers can ask a business to place them on their internal do not call list to prevent unwanted calls. If an individual continues to receive the calls, that person can file a complaint with the Attorney General's Office and the Federal Trade Commission, the agency in charge of the Do Not Call registry.

You may place your personal cell phone number on the National Do Not Call Registry too, even though cell phones don't usually get that many telemarketing calls. However, that could change as more consumers only use cell phones in place of land lines. The registry has accepted cell phone numbers since it opened for registrations in June 2003. There is no deadline to register a home or cell phone number on the registry, according to the FTC.

You may have received an email telling you that your cell phone is about to be assaulted by telemarketing calls as a result of a new cell phone number database; however, that's just an Internet rumor. Federal Communications Commission regulations prohibit telemarketers from using automated dialers to call cell phone numbers.

The Do Not Call list is an important tool to prevent fraud, because it limits the number of telephone pitches directed at consumers. Older consumers are especially vulnerable to high-pressure telemarketers.

Do Not Call List Doesn't Stop AllTelemarketing Calls...

FCC Launches Probe Of Wireless Industry

The Federal Communications Commission (FCC) voted 5-0 today to launch an investigation of the wireless industry, focusing on efforts to improve innovation and increase consumer protections in the American mobile market.

The statement, a prelude to a formal "Notice of Inquiry" issued by the agency, expands on an earlier investigation of "truth in billing" disclosures, designed to ensure consumers are being billed fairly for their wireless services. The additional investigation "asks questions about the information available to consumers at each stage of the purchasing process."

"The Commission seeks comment from communications service providers, academic researchers, consumer groups and third-party analysts on how best to ensure consumers have the information they need to make informed decisions in the communications marketplace," the agency said.

Although the vote to launch the investigation was unanimous, the sentiments behind it were not. Democrats, who hold a 3-2 majority on the commission, emphasized the need for stronger consumer protections, while Republicans warned against excessive regulation that could hamper innovation.

FCC chairman Julius Genachowski said the investigation would "seek to ensure that consumers have the information they need to make the market work," while new commission member Mignon Clyburn--both Democrats--urged industry leaders to share customer data in order to avoid "developing solutions that are suboptimal for both consumers and industry."

"We have a responsibility to weigh the benefits of any proposed regulation against the costs, as well as to carefully consider potential unintended consequences of our actions," said Republican commissioner Meredith Atwell-Baker.

The announcement comes on the heels of the FCC's inquiry into why Apple and AT&T; have allegedly blocked access to the Google Voice calling application on the iPhone. AT&T's exclusive contract with Apple to carry the iPhone made it a target of complaints from critics that it was hindering competition by blocking the app. Neither Apple nor AT&T claimed responsibility for the issue.

Genachowski also reiterated yesterday that the agency would support net neutrality, the concept that all information on the Internet should be equally accessible to all users. Supporters of net neutrality say the wireless industry hampers equal access, as carriers can block user access to applications on a whim, and the use of mobile devices for Internet access demands fair treatment.

ConsumerAffairs.com regularly receives complaints on everything from cell phone service quality to billing problems for all four of the major carriers.

Darren, from Santa Monica, CA, wrote on August 26 that "I have been a Sprint wireless ustomer for years, yet for some unknown reason they have not provided me with a bill for over 10 months now. I have been paying this bill blind for that amount of time but no more. I feel I have been overcharged during most of this time but cannot place a dispute because I have NO WAY of documenting it!"

The formal Notice of Inquiry will be published on the FCC Web site soon, the agency said. Interested parties have 30 days to comment from the date of publication.

FCC Launches Probe Of Wireless Industry: The Federal Communications Commission (FCC) voted 5-0 today to launch an investigation of the wireless industry....

Wireless Carriers Agree To $1.5 Million Cramming Settlement

Verizon Wireless and Alltel customers in Florida will get millions of dollars in refunds of third-party charges that ended up on their telephone bills. Florida Attorney General Bill McCollum struck a deal that holds the telecoms liable for "cramming" by third party billers.

As part of the deal Verizon Wireless, LLC has agreed to adopt a series of "best practices" standards which will protect consumers from third-party charges, including charges for "free" ringtones and other cell phone content customers either didnt order or didnt realize would result in a monthly charge.

"Consumers deserve to get their money back when a company misrepresents something as free that isn't," said Attorney General McCollum. "I commend Verizon Wireless for providing full restitution to their Florida customers and changing the business model to better protect consumers nationwide."

Cell phone content includes ringtones, music, wallpaper, horoscopes and other material that is often promoted by online marketers as "free," but ultimately ends up costing up to $19.99 a month. The charges appear on a subscriber's monthly wireless bill and are usually recurring. The bill charges often appear under the following indiscernible names: "OpenMarket," "M-Qube" and "M-Blox."

A large number of complaints related to the mobile content industry led to an investigation which revealed that thousands of Florida consumers had received these charges on their cell phone bills for mobile content downloads that they neither knowingly authorized nor desired. Prior to the investigation, Verizon offered its customers the ability to block third-party mobile content and to implement parental controls free of charge. The investigation and subsequent settlement have been negotiated by the Attorney Generals CyberFraud Section.

McCollum says Verizon Wireless has agreed to first-of-their-kind standards for advertising on websites, prohibiting the use of the word "free" without clear disclosure of the actual price and requiring all content providers and advertisers to clearly and conspicuously disclose the true cost of cell phone content.

These compliance standards, which include website design restrictions for online advertisers, will ensure consumers see and understand the terms and conditions of the purchase. Verizon Wireless will enforce these new standards through its contracts with all content providers and advertisers nationwide. Alltel will also be required to adopt these "best practices" under the company's acquisition by Verizon Wireless.

As part of the settlement, the company will pay a total of $1.5 million, with $1 million for Verizon Wireless and $500,000 for Alltel, to reimburse the state for the costs of its investigation and to help the Attorney General's Office fund the efforts of the task force as it continues to press for similar reform across the industry. The agreement was negotiated with full cooperation for Verizon Wireless LLC.

The Attorney General's Office has already obtained several settlements with players from each part of the industry, including marketers, billing aggregators, content providers and wireless service providers. Verizon Wireless is the second wireless provider to set up these standards and offer consumer refunds; AT&T Mobility reached an agreement in February 2008.

Wireless Carriers Agree To $1.5 Million Cramming Settlement...

Obama Orders Rollback of Preemptions on State Laws

President Obama today ordered federal government agencies to sweep their regulatory histories going back ten years for any regulation that would preempt or block stronger state laws and remove them, reversing a long-running trend towards "preemption" of laws that protect consumers at the state level.

The memorandum, released today by the White House and published in the Federal Register, affirmed that "Throughout our history, State and local governments have frequently protected health, safety, and the environment more aggressively than has the national Government."

"In recent years...executive departments and agencies have sometimes announced that their regulations preempt State law, including State common law, without explicit preemption by the Congress or an otherwise sufficient basis under applicable legal principles," the statement added.

Under the new directive, heads of federal agencies would not be able to issue regulations that conflicted with state law unless the regulation specifically included language describing the preemption, or that did not cohere with existing federal orders governing preemption.

The Constitutional Accountability Center (CAC) hailed the decision as a rebuke of the Bush administration's frequent usage of preemption, saying that "President Obama reaffirmed the critical role that state and local governments play in our constitutional system."

In recent years, numerous industries have argued that federal laws should preempt state laws on a variety of topics, from roof strength standards for cars, to predatory lending laws, to cell phone contracts. The common business argument has been that a single, simple federal standard is easier for businesses to navigate than a patchwork of 50 different state laws.

Critics charge that the real reason businesses favor federal preemption is that it's easier to lobby a few lawmakers on Capitol Hill to pass weak federal laws that block stronger state laws, and that national law should be a floor, not a ceiling, for state laws.

Ian Millhiser, an attorney with the National Senior Citizens Law Center, said on his personal blog that "President Obama's policy memorandum shows that he understands that the federal government cannot be an obstacle to states who want to protect their citizens in a manner that goes above and beyond bare federal standards."

Obama Orders Rollback of Preemptions on State Laws...

Judge Orders Halt to Warranty Robocalls

Those annoying calls telling you that your car warranty is expiring and that youd better act now to do something about it should be a thing of the past -- at least for now.

A federal judge has issued a temporary restraining order stopping telemarketing company Voice Touch, Inc., its principals James and Maureen Dunne, its business partner Network Foundations LLC, and Network Foundations principal Damian Kohlfeld from making any further calls in violation of the Do Not Call Registry and other provisions of the Telemarketing Sales Rule and the FTC Act.

The move follows charges by the Federal Trade Commission that the defendants were operating a massive telemarketing scheme that used random, recorded phone calls to deceive consumers into thinking that their vehicles warranty is about to expire.

Today the FTC has disconnected the people responsible for so many of these annoying robocalls, said FTC Chairman Jon Leibowitz. We expect to see a dramatic decrease in deceptive auto warranty calls, but we are still on high alert.

If consumers continue to receive unsolicited robocalls to numbers on the Do Not Call registry, they should report them to DoNotCall.gov.

Related matter

In a related matter filed by the FTC, Judge John F. Grady of the United States District Court for the Northern District of Illinois issued a temporary restraining order against automobile warranty sales company Transcontinental Warranty, Inc., and its CEO and president, Christopher Cowart, who are clients of Voice Touch.

In both cases, the court found that the FTC established a likelihood of success on the merits.

The court barred deceptive claims about extended warranties, froze the defendants assets, and appointed receivers over Transcontinental and Network Foundations to ensure that documents are preserved and assets are not dissipated.

The restraining orders are in effect until a preliminary injunction hearing set for May 29, at which time the judge will reassess what type of relief should remain in place until the case proceeds to trial.

Constant annoyance

The spam calls have targeted Americans randomly on both cell phones and landlines, even when the recipient is on the federal "Do Not Call" registry. The call plays an automated message that offers a deal on an extended car warranty.

U.S. Senators Charles E. Schumer (D-NY) and Mark Warner (D-VA) had pressed the FTC for action and announced a few days ago that the agency expected to take action soon.

"It's about time these robocalls were terminated," Schumer said. "This prompt, aggressive action by the FTC should provide a bit of relief to the Americans besieged by these fraudulent calls. Almost everyone knows someone who's received these calls. It's about time we find out who's behind them, and put a stop to this harassment."

"In addition to violating the 'Do Not Call List' law, these scammers are peddling phony car warranties that exploit consumers," said Warner. "We've heard of Virginians receiving these calls when they do not even own a car, and others who are understandably upset that the automated calls tie-up their phone lines, costing them time and money."

Schumer and Warner revealed that they themselves have both received these calls in recent weeks.

Unrecognized number

The scam begins when someone's phone rings from an unrecognized number. The caller then turns out to be a computerized voice selling car warranties with voice starting out by saying "Out of warranty? You are still eligible to reactivate warranty coverage. This is the final call before we close the file."

The recording typically gives the caller an option to stop receiving calls, usually saying, "press two to be removed from the follow up list." However, the calls continue to come. The company making the calls has no idea what car a person is driving because the calls are randomly generated, so their contention that your warranty "is about to expire" is bogus.

In his letter to Leibowitz, Schumer wrote, "Not only are these calls a nuisance, but they tie up land lines and can eat up a user's cell phone minutes, possibly leading to a higher cell phone bill due to overage charges. Consumers should not have to pay in both money and time for this or any other type of robo-dialer harassment."

Judge Orders Halt to Warranty Robocalls: A federal judge has issued a temporary restraining order stopping telemarketing company Voice Touch, Inc....

Illinois Files "Cramming" Suit Against California Firm

The State of Illinois has sued a Chatsworth, California company and its owner for allegedly "cramming" consumers' phone bills with unauthorized monthly charges to cover cell phone repair warranties.

"This case demonstrates how schemers will go to great lengths to trap consumers into paying unfair charges and fees for services they never authorized or needed," Illinois Attorney General Lisa Madigan said. "I urge consumers to thoroughly examine their phone bills every month to make sure that they are not being unfairly billed."

Madigan's complaint alleges that the defendants, Minilec Warranty ISP, LLC., and its owner, Martin A. Schwartz, market cell phone warranties on the Internet at third-party Web sites. Consumers who sign up for the warranty deal must provide their name, home telephone number, cell phone number, e-mail address, zip code and cell phone brand name. The registration process informs the consumer that the warranty service will cost $29.95 per year but fails to clearly disclose that the charge will appear on consumers' local telephone bills.

Madigan's Consumer Fraud Bureau has received 17 complaints against Minilec since 2007, including complaints from consumers who say they never visited the Web site or authorized the purchase of the warranty service.

Madigan's suit alleges that the defendants violated the Illinois Consumer Fraud and Deceptive Business Practices Act by placing unauthorized charges on consumers' phone bills. According to the complaint, the defendants also deceptively characterize the charges on consumers' telephone bills as a monthly Internet service fee despite claiming online that consumers will be billed for cell phone warranties.

The charges allegedly appear on phone bills as "MINILEC ISP WARRANTY INET 1X SETUP FEE" for $10.00 and "MINILEC ISP WARRANTY INET MONTHLY FEE" for $19.95.

The complaint asks the court to enter a permanent injunction to ban the defendants from doing business in Illinois.

The suit also asks the court to order the defendants to pay restitution for consumers, civil penalties of $50,000 for violating the Consumer Fraud and Deceptive Business Practices Act, and an additional $50,000 for each violation committed with the intent to defraud.

Illinois Files ...

California Gets Judgment Against Calling Card Company

Los Angeles-based Total Call International, Inc. can no longer charge "hidden and deceptive" fees for its pre-paid calling cards, according to California Attorney General Edmund G. Brown Jr.

"Total Call International has raked in profits by advertising bargain basement prices then charging exorbitant fees when their cards were used. This new agreement," said Brown, safeguards consumers "by forcing this company to fully disclose hidden and deceptive calling card fees."

Brown charged that Total Call International advertised low per-minute base rates on its calling cards and then charged steep, undisclosed add-on fees and surcharges when consumers used their cards, Brown said. This significantly reduced the amount of calling time available.

Brown and the California Public Utilities Commission launched an investigation and prepared a lawsuit contending that Total Call International violated a California law that specifically requires disclosure of pre-paid calling card fees, as well as California's false advertising and unfair competition laws.

The stipulated judgment resolving the case requires Total Call International to:

• Disclose all fees, add-ons, and surcharges in a clear and conspicuous manner and include those charges in the marketing of its per-minute rate.

• Maintain records and allow the Attorney General's office to monitor its activities to determine if Total Call International is in compliance with the settlement and California Law.

• Pay civil penalties of $300,000.

During the course of the investigation, Total Call International agreed to stop charging a "real-time rate surcharges," costing the company $1.5 million in profits. Total Call International did not admit any wrongdoing.

Calling cards, often sold at newsstands and grocery stores, are meant to be a convenient, affordable tool for users that make frequent international calls and may not have regular access to telephone service.

Brown says calling card users should take the following steps to protect themselves:

1. Make sure you're getting what you pay for — buy a card for a small denomination first to test out the service.

2. Check with family and friends to find out their experience with calling cards.

3. Ask retailers if they stand behind the card if the telephone service is unsatisfactory. It's important to remember that the store where the card is purchased doesn't control the quality of the service.

4. Remember that very low rates, particularly for international calls, may indicate poor customer service, or a sign that hidden fees and surcharges apply.

5. Always look for disclosures about surcharges, monthly fees, per-call access, in addition to advertised rate-per-minute.

6. Check the expiration date. Some cards expire after a certain amount of time.

7. Make sure the card comes in a sealed envelope or has a sticker covering the PIN. Otherwise, anyone who copies the PIN can use the phone time you've already paid for.

California Gets Judgment Against Calling Card Company...

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Telephone Industry Still Lacks Significant Competition

Janine Migden-Ostrander
Ohio Consumers' Counsel

April 21, 2009
Twenty-five years after the breakup of AT&T, consumers have seen significant changes in how they make telephone calls, what they pay and the services they receive.

The telephone monopoly agreed in a 1982 settlement with the U.S. Department of Justice to break itself into seven companies, called Baby Bells, to provide local telephone services by region. AT&T kept its long-distance service, then its most profitable division. The agreement went into effect in 1984.

Technology and industry structures have since changed and AT&T has reconstructed itself, without many of the regulations that once applied to the original company. Instead of seven companies, there are three — AT&T, which also includes long-distance operations; Verizon, which absorbed former long-distance carrier MCI; and Qwest.

The Office of the Ohio Consumers Counsel (OCC) has advocated on behalf of residential telephone consumers over those 25 years, making sure they have a voice when higher rates are proposed and service quality decreases. Its been a constant struggle.

Are we better off today than we were 25 years ago?

The answer depends on whos talking. Competition for AT&T service has not come from similar providers as was hoped when the government broke up the monopoly. Instead, it has come from companies offering mobile phone or Voice over Internet Protocol (VoIP) services. But these services are different.

Many consumers are as dependent on mobile phones as they are on traditional land lines. Others still have phone service through a wire line, but that line might be connected to a cable TV system or directly to the Internet.

Cell phones offer mobility, but require a wireless signal that is not available in many rural areas of Ohio. VoIP service requires a broadband Internet signal that also is not available to many. Unlike traditional wire line service that operates even during extended electrical outages, wireless and VoIP services cannot operate after back-up batteries, if any, are depleted.

Less regulation

Moreover, the price and quality of cell phone and VoIP services are generally not regulated by state government compared to the way the Baby Bells services were.

Cell phone service with unlimited calling is typically more expensive for consumers than wire line service. VoIP service requires consumers to pay a separate monthly fee for access to the Internet and a charge for VoIP service itself.

Today, 25 years after it was broken up, AT&T and other telephone companies seek fewer regulations and less regulatory oversight. While price has been deregulated, in order to protect consumers, the terms and conditions of service should continue to be regulated.

Similar regulations should be applied to wireless and VoIP services to protect consumers of those services as well. It is fairly typical that services that have been deregulated in terms of price still retain regulation of consumer protections.

Unfortunately, some traditional telephone companies have asked for rate increases even as they argue there is plenty of competition. This claimed competition should result in decreasing prices for consumers.

Despite what the OCC considers to be the lack of effective competition for traditional phone service, the PUCO recently gave permission to AT&T Ohio to increase its basic local service rates. It has not yet increased these rates, but Cincinnati Bell (a company that was not part of the break-up) has increased some basic service rates in some exchanges by $3.75 per month over the last three years. Also, telephone companies tend to bundle services such as Caller ID and inside wire maintenance with their basic dial tone, which can be problematic for consumers who neither want nor need all the bells and whistles - and the expense - of additional services.

Not nearly enough competition

The OCC experts worry there is not nearly enough competition to drive down consumer costs and improve quality.

Twenty-first century technology made construction and maintenance of telephone systems less expensive than 25 years ago, but prices are headed upward. We are fighting for consumers so they can benefit from cost savings. At the same time, we are advocating that all companies meet minimum telephone service standards.

The upside of all this is that depending on where you live, you may be able to take advantage of bundled packages of services that include various telephone features as well as cable TV and/or Internet service. Long distance calling has become more affordable over the years as well.

The OCC welcomes the development of new technologies and options for consumers, but believes consumer protections are needed to ensure fairness.

Consumers must remain diligent and selective in their decisions about phone service. When given the opportunity to switch telephone carriers, you should research which company offers the best plan and cost for services. You should carefully read and understand your monthly bill and question charges you do not understand or believe you should not have to pay

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The Office of the Ohio Consumers' Counsel (OCC), the residential utility consumer advocate, represents the interests of 4.5 million households in proceedings before state and federal regulators and in the courts. The state agency also educates consumers about electric, natural gas, telephone and water issues and resolves complaints from individuals.

Telephone Industry Still Lacks Significant Competition...

New Jersey Sues Verizon Over Deceptive FiOS Marketing

Remember Verizon's promise to buy its FiOS customers flat-screen television sets and other promotional gifts? Well, the state of New Jersey says the company failed to deliver in many cases, and the state has filed suit against the telecom giant.

The Office of the Attorney General through its Division of Consumer Affairs has filed suit against Verizon New Jersey, Inc., alleging that its marketing, sales, billing and customer service practices for its FiOS television, telephone and internet services are deceptive and misleading.

The state also alleges that Verizon charged consumers higher prices for service than prices quoted in door-to-door solicitations and advertisements and also charged activation fees after consumers were told that such would be waived.

"FiOS is touted for its clearer picture but Verizon obscured the truth from potential customers in its advertising and sales pitches," New Jersey Attorney General Anne Milgram said. "Deception and misrepresentations have no place in the marketplace and we will hold businesses accountable when they violate the public's trust."

In its four-count complaint filed in State Superior Court in Essex County, the state alleges that Verizon violated the Consumer Fraud Act through unconscionable commercial practices, misrepresentations and knowing omissions of material facts, as well as the Advertising Regulations.

The state specifically alleges that Verizon engaged in the following conduct:

• Quoting one price for FiOS Service in door-to-door solicitations, direct mail advertising and otherwise, then billed consumers at a higher price;

• Charging consumers an activation fee, after the salesperson in the door-to-door solicitation waived the fee;

• Charging consumers for services, such as movie packages, that were never ordered;

• Representing that movie packages were free, then billing consumers for such services;

• Advertising promotional gifts, yet failing to provide consumers with the opportunity to contract for the types of FiOS service necessary to obtain the promotional gifts;

• Using the term "additional charges apply" in advertisements, without providing a description of those charges;

• Failing to provide consumers with the rewards letter or other instructions necessary to receive their promotional gifts;

• Failing to provide consumers with a copy of their signed contract;

• Representing that consumers are entitled to receive promotional gifts, but failing to provide promotional gifts;

• Providing consumers with promotional gifts only after significant delay and/or after consumers made repeated calls or other contacts with Verizon;

• Billing consumers at a price other than that initially quoted;

• Billing, on a monthly basis, inconsistent amounts to the same consumers with the same services;

• Failing to honor a consumer's request to cancel the FiOS service; and

• Making it very difficult (i.e. long delays, varied telephone numbers) for consumers to reach a customer service representative in order to address or resolve issues as to promotional gifts, services and/or billing.

"Verizon conducted a very aggressive marketing campaign to introduce its FiOS service, which included promotional gifts that were never to be provided," said David Szuchman, New Jersey's Consumer Affairs Director. "We will seek to ensure that Verizon complies with all relevant laws when advertising and selling services and products."

To date, the Division has received 266 consumer complaints related to FiOS marketing and sales.

New Jersey Sues Verizon Over Deceptive FiOS Marketing...

New Jersey Calls 'Time Out' On Prepaid Calling Cards

New Jersey has entered into settlement agreements with seven telecommunications companies regarding their advertising and sale of pre-paid calling cards and concerns whether consumers were receiving the full amount of time for which they paid.

Getting less than what you paid for is illegal and these settlements ensure that the terms governing the use of calling cards are clearly and plainly disclosed to consumers, Attorney General Anne Milgram said. Weve told the industry that every second counts and these companies will account for every second on these cards.

The settlement terms mirror requirements contained in a new state law governing pre-paid calling cards that took effect last year.

These settlements, and the state law governing calling cards provide New Jersey consumers with protection against the deceptive sales practices which have plagued this industry for too long said David Szuchman, Consumer Affairs Director. Weve changed the business practices of this industry and the millions of consumers who buy calling cards each year will benefit.

The seven companies are:

• CVT Prepaid Solutions, Inc., 40 Cuttermill Road, Suite 500, Great Neck, New York 11201
• Dollar Phone Enterprises, Inc., 232 Broadway, Brooklyn, New York 11211
• Epana Networks, Inc., 1250 Broadway, 30th Floor, New York, New York 10001
• IDT Corp., 520 Broad Street, Newark, New Jersey 07102
• Locus Telecommunications, Inc., 111 Sylvan Avenue, Englewood Cliffs, New Jersey 07632
• STi PhoneCard, Inc., 30-50 Whitehouse Expressway, 4th Floor, Flushing, New York 11354
• Total Call International, Inc., 707 Wilshire Boulevard, 12th Floor, Los Angeles, CA 90017

The settlements conclude investigations into each companys business practices related to pre-paid calling cards. Each company has paid $5,000 to reimburse the Divisions costs. Other than CVT (which is no longer selling pre-paid calling calls), each company will pay $5,000 per year for the next three years to offset the cost of the Divisions continued monitoring for compliance.

As part of the settlements, each company also agreed to the following business practices:

• Comply with the Consumer Fraud Act and regulations, as well as any other state and/or federal laws, rules and regulations which are applicable to all future sales and marketing of pre-paid calling cards by or on behalf of the company;

• Ensure that all minutes or rates, or both, advertised on any pre-paid calling card, any point of sale material relating to that card or otherwise relating to any pre-paid calling service, shall be available to the consumer and there shall be no limitations on the period of time for which the advertised minutes, or rates, or both, will be available to the consumer unless those limitations are clearly and conspicuously disclosed in the same location on the card, advertising or point of sale material where the minutes or rates, or both are advertised;

• Ensure that all service minutes promoted, advertised or disclosed on any voice prompts provided at the time the consumer places a call with companys pre-paid calling cards shall be immediately available to the consumer on that call. The consumer shall not be charged for any busy signal or unanswered call;

• Not charge, apply or deduct from a pre-paid calling cards balance any fees, taxes, surcharges or other amounts for use of the card except: (1) the rate per minute for the particular destination called; (2) any permitted fees; and (3) any rate per minute, fee or charge for use of the card, or permitted for calls to or from international telephone numbers, international cellular and international wireless telephone numbers;

• Clearly and conspicuously disclose all permitted fees, as well as any other fees and surcharges, on its pre-paid calling cards and/or packaging materials and on its advertisements;

• Clearly and conspicuously disclose the companys policy of rounding off time for billing purposes on its pre-paid calling cards and packaging materials;

• Make available to consumers a toll-free customer service telephone number to address any post-order inquiries concerning all pre-paid calling cards, and clearly and conspicuously disclose to consumers the telephone number in all materials accompanying the pre-paid calling cards;

• Within thirty (30) days of settlement, make available through the toll-free customer service telephone number all information concerning any charges and deductions and its and its policy of rounding off time for billing purposes; and

• For a three-year period, maintain and preserve, and make available to the Division upon its request, specified documents and records.

New Jersey Calls 'Time Out' On Prepaid Calling Cards...

College Students Prefer Simple Cell Phones

Apple and other manufacturers of multi-faceted cell phones (aka "smartphones") perhaps should not count on tech-savvy young people as their principal market. When it comes to cell phone usage at the University of New Hampshire (UNH), a study shows practicality is in and high tech is out.

A marketing research class at the UNH Whittemore School of Business and Economics conducted a survey of 707 undergraduate students. When asked about the top three uses for their cell phone, 91 percent said talking, 87 percent said text messaging and 80 percent said alarm clock.

"UNH students want pragmatic and practical feature on their cell phones," said Chuck Martin, adjunct professor of marketing at UNH who taught the marketing research class. "Students use their cell phones to make phone calls, text message, and as an alarm clock. Features such as music, global positioning satellite (GPS), email, and video messaging were among the lowest used features on current cell phones, and the research indicates that this isn't changing anytime soon."

Regarding cell phones of the future, 68 percent of students said the top feature they would like is longer battery life, while 58 percent said they want it to be waterproof. The features that the fewest number of students want are video surveillance, video projection and video editing.

However, price is a major stumbling block for students. While the majority of students want a longer-lasting battery life, they are not willing to pay a high price. Eighty-six percent of students said that price is the top reason for not purchasing cell phones in the future.

Other interesting results include:

• First-year students are more likely to use their phone as a camera while seniors are more likely to use it as a calculator: 63 percent of first-year students use the camera feature regularly, compared with 51 percent of seniors. In contrast, 61 percent of seniors use the calculator feature regularly, compared with 51 percent of first-year students.

• Students at the College of Engineering and Physical Science are significantly less interested in voice-to-text capabilities compared with their peers in other schools. Only 8 percent of CEPS students are interested in the feature, compared with an average 20 percent of respondents from other schools.

• Business school students were the most interested in the future feature of voice to text. They were the only school to have more than 50 percent of respondents interested in the feature.

College Students Prefer Simple Cell Phones...

AT&T To Offer Contract-Free iPhone


It sounds almost too good to be true: Get a new iPhone from AT&T without having to sign a contract.

Well, there is one very hefty string attached. In order to get the service without the contract, you have to spend an extra $400 for the iPhone.

In announcing its new policy, AT&T said the iPhones without a contract will cost $599 or $699. It didn't say when it would start its new policy, only saying it would happen "in the future," which covers a lot of territory.

AT&T says the new iPhones, which will normally cost $199 and $299 with a two-year contract, are priced higher without a contract because that's the actual cost of the phone. AT&T says it subsidized part of the cost for contract customers, getting the money back over the life of the contract.

AT&T says it's offering the no-contract option in response to customer demand. Regulators and members of Congress have also prodded cell phone companies to be more accommodating to subscribers when it comes to early termination fees.

Even though you can get an iPhone without signing an AT&T contract, you will still have to use AT&T service. The iPhone remains locked, meaning it can't be used on other networks.

Since the early termination fee for ending a contract is normally $175, it isn't immediately clear if many consumers will pay an extra $400 just to avoid a contract.

AT&T says the new iPhones, which will normally cost $199 and $299 with a two-year contract, are priced higher without a contract because that's the actual ...

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Military Families Struggle with AT&T Calling Cards


Charles Bustamante
Charles Bustamante & Sarah Scheuring

Sarah Scheuring tried for two months to contact her husband stationed in Afghanistan using a multitude of the prepaid AT&T calling cardsavailable to military personnel and their families, only to have the minutes on her cards disappear, leaving her with about two minutes of talk time for each $27.50 card.

An AT&T spokesman said the company believed it was an isolated incident and credited Scheuring's account.

I have spent over $700 in the last two months because I have no other option to get a hold of my husband, Scheuring wrote to us in mid-May.

Her husband, Charles, was deployed to Afghanistan in March after a 12-month stint in Iraq in 2005 and 2006.

He is stationed in an area where there is not even running water let alone Internet or a call center, Scheuring said. His international cell phone is all I have to communicate with him.

When she tries calling Charles on the prepaid cards sold exclusively on the Army Air Force Exchange Service Web site, she said 99 percent of the time it won't connect. Rather than just disconnect and not incur any charges, the service makes a noise like a fax machine and then starts ringing.

Instead of someone picking up the line, the phone just keeps ringing and while it's ringing it incurs charges, Scheuring said.

How is constant ringing a connected call? she asked.

It took her a a handful of $27.50 phone cards the most expensive AT&T offers soldiers and their families before she learned the incessant ringing was draining her minutes so quickly and now she said she knows when I hear the ringing, I hang up immediately.

But, even when she does not hang up the phone as soon as it starts ringing, it still charges her connection costs, which quickly burn up her minutes.

Frustrated with the almost complete lack of connectivity through AT&T and missing Charles, Scheuring decided to use her cell phone to make the calls. Even though her cell phone provider charged her $3.05 per minute, it was cheaper than what she was paying through the AT&T cards and considerably more convenient since her cell phone calls always went right through to her husband.

Scheuring said AT&T offered her a $350 voucher and told her that it was because of Afghanistan's phone service that her calls didn't go through. They also said they cannot guarantee prepaid minutes made to cell phones even though that language is absent in their terms and conditions.

Scheuring said she'd rather have cash because AT&T's service is useless to her and she would like some assistance paying back her cell phone debt and to pay back all the wasted money on nearly useless phone cards.

Later, Sarah clarified that AT&T, which is also her wireless provider, credited her wireless account with $454 on top of the $350 phone card they gave her.

Fletcher Cook, an AT&T; spokesperson said he believes it is an isolated incident because of her husband's remote location in Afghanistan.

"We've worked with this customer at length," Fletcher said. "We want to keep her happy and retain her as a customer."

After a call from ConsumerAffairs.com, AT&T; called Sarah and converted her $350 phone card, which she said was useless since AT&T's service was spotty, into a $350 wireless credit.

In the past few days Scheuring found an even better solution: IDT). Since Charles' cell phone is provided by IDT, Scheuring can use IDT's prepaid cards and connect immediately. She said she pays $10 for about 55 minutes now.

It's still more than what AT&T advertises for its cards, which are the only options for soldiers using the call centers at bases overseas, but Scheuring said she's just happy she's found some way to keep in contact with Charles during his 15-month deployment.

AT&T advertises these cards to troops and their families knowing that we do not have any other option, Scheuring said. Then they turn around and rip us off.

Sarah Scheuring tried for two months to contact her husband stationed in Afghanistan using a multitude of the prepaid AT&T calling cardsavailable to milita...

Is Texting Replacing Talking?

More and more of us are letting are fingers do the talking. A new survey finds that 36 percent of cell phone users are sending text messages daily.

Compiled through a survey of thousands of U.S.-based cell phone users, the Wirefly.com research confirmed the rapid growth in text messaging usage, with 36% of respondents classifying themselves as heavy users sending anywhere from one a day to hundreds per month.

An additional 29% send fewer than 25 text messages a month, and the other 35% saying they never take advantage of text messaging capabilities.

Within the top-third heavy user category, the majority of respondents said that they send more than 100 text messages a month.

Personal use

The Wirefly.com survey shows that the growth of text messaging continues to be fueled by personal and non-professional uses.

Of the 65% of customers who do send text messages, a huge majority use them only to contact friends, spouses or significant others. Just 8% of text message users report sending a text to a co-worker or for professional reasons.

According to the survey, Wirefly.com discovered that texting takes place only within a small social circle:

• 48% send messages to just 2-5 people;

• 21% expand that pool to 6-10; and,

• 20% spread their messages around to more than 10 recipients.

"It certainly appears as though our customers overwhelmingly use text messages to convey personal messages to a relatively intimate group of close friends," said Scott Ableman, Wirefly's Senior Vice President of Marketing.

"While we did find a small subset who send a tremendous number of texts to large groups of people, the typical user clearly restricts texting to a manageable group of close friends or family members."

In addition and perhaps most interesting, the Wirefly.com data seems to refute the wide-spread notion that text messaging is generally a medium for brief, choppy communication. A full 35% of those who do send text messages reported a typical message length of "several sentences." This option beat out "one word" (4%), "several words" (33%), and "one sentence" (28%).

Motives for text messaging range from simply "responding to a received message" (59%), to "as a substitute for a phone call" (49%) or "a quick hello" (48%). And nearly a fifth of all text messagers (17%) claimed to have flirted via text or for romantic purposes.

Finally, the primary reason for choosing to send a text message rather than placing a call highlights the flexibility and convenience of texting:

• 52% text instead of calling when "the situation makes talking on the phone difficult";

• 23% involved "lack of time" for a call;

• 15% simply "prefer text messaging to talking"; and,

• 10% attempting to avoid speaking with a specific person.

"The one result that did raise eyebrows involved 'breaking up with a boyfriend, girlfriend or romantic involvement via text message,'" said Ableman. "We're glad that 96% of our survey respondents report not having done so, but we were all intrigued, amused and concerned that 1 in every 25 respondents say they have."

The recently completed U.S.-based online survey was conducted from an opt-in pool of customers who had purchased new wireless phones and new service plans from Wirefly.com. The sample of 2,377 respondents was 55% female and 45% male. 36% of respondents were between the ages of 31-44, 34% were 45 and above, 17% were between the ages of 25-30, and 13% were 18-24.

The margin of error was 2 percentage points at a 95% confidence level.

Is Texting Replacing Talking?...

FCC's Martin: No Opening Of Wireless Networks

Supporters of wireless networks that can work with any phone or device who thought Federal Communications Commission chair Kevin Martin was an ally were wrong.

Martin told an audience at a trade show that he was issuing an order dismissing a challenge from computer phone service Skype to open all wireless networks to all devices.

"In light of the industry's embrace of a more open wireless platform, it would be premature to adopt any other requirements across the industry," Martin said. "Thus, today I will circulate to my fellow commissioners an order dismissing a petition for declaratory ruling filed by Skype that would apply Carterfone requirements to existing wireless networks."

The 1968 Carterfone legal decision mandated that land-line phone networks could be opened to all devices, such as answering machines, faxes, cordless phones, and eventually dial-up Internet modems. PC-to-PC phone service Skype, a subsidiary of eBay, had filed a petition in February 2007 for the FCC to apply the Carterfone standard to wireless networks.

In dismissing the petition, Martin cited recent developments in the wireless industry such as the recently-concluded auction of wireless spectrum, won by Verizon at $19.6 billion.

The auction's conditions included opening any networks built on the new spectrum to all phones or devices, a condition that Martin said could "help foster innovation on the edges of the network...As important, it will give consumers greater freedom to use the wireless devices and applications of their choice when they purchase service."

S. Derek Turner, research director of media watchdog group Free Press, criticized Martin's decision as "a missed opportunity."

"If open devices and applications are good for consumers in the networks to be built on the newly auctioned spectrum, why not for all mobile networks?," asked Turner. "The small handful of companies that dominate the wireless world have a track record of stifling competition and an aversion to innovation. Trusting these same companies with the promise of the mobile Web is short-sighted."

With friends like these...

Martin used the speech to discuss the failure of the auction to net funding for a first-responder public safety network, which he has promised to investigate. Martin also cited his record of promoting market-friendly policies such as an opposition to "net neutrality," the principle that Internet users can access all content on the Web equally.

"[S]ince I have been Chairman, I have opposed applying network neutrality obligations with mandatory unbundling or wholesale requirements to networks that would undermine investment incentives," Martin said. "This careful balancing of spurring innovation and consumer choice while encouraging infrastructure investment is critical to the wireless industry's continued impressive growth."

Phone-friendly

Martin's policies have been especially friendly to the telecom industry, which largely opposes net neutrality and originally opposed opening networks to all devices.

Verizon, which even sued the FCC over the "open access" requirements to the wireless auction, has since claimed it would open its network to all devices, for which Martin gave them credit. But industry analysts and observers who have studied Verizon's plans claim their network would be two-tiered, with one for Verizon customers and one for people bringing their own phones--at a much higher cost.

Martin's FCC failed to stop AT&T, Sprint, and Qwest from blocking access to long-distance conference service FreeConference.Com in April 2006, until consumer complaints and media pressure forced the agency to intervene and broker an agreement between the sparring companies.

Martin also pulled out all the stops to ensure that AT&T and BellSouth could merge into the world's largest telecommunications company, even going so far as to say that the merged company was free to ignore conditions placed on it by other FCC commissioners as part of the merger, such as supporting net neutrality principles on its services.

Martin has supported new video franchising legislation that would enable telecom companies to enter new markets and deploy new services much faster than their cable counterparts, often completely bypassing local and municipal governments to deal directly with states.

Meanwhile, Martin has pursued a much more aggressive legislative agenda against the cable industry, demanding that Comcast immediately stop blocking users from accessing BitTorrent under threat of FCC investigation.

Martin has campaigned for sweeping changes to the cable industry, from ending exclusive service deals to apartments and condominiums to campaigning for "cable a la carte," where viewers can buy only the channels they want to watch, rather than package deals.

FCC's Martin: No Opening Of Wireless Networks...

Verizon Rolls Out Unlimited Calling


Is it time for the cell phone industry to get over itself?

When it rolled out the technology in the 1980s, you have to admit it was pretty exotic. Suddenly, you could make phone calls without being tethered by wires. Why, you could even make a call from your car!

As with any bold new technology, early users paid through the nose. The phones were big, clunky and expensive, as were the calls. Subscribers paid a fee for monthly service, and then were charged a hefty per-minute rate when they made or received calls.

Most early users were businesses who were able to absorb the cost but the wireless providers wanted the cell phone to become ubiquitous, so they adopted various rate plans that included a set number of calling minutes.

If you didn't use your phone very much, you could opt for a plan with fewer minutes. If you had a teenage daughter, you went for the high-minute package.

But in exchange for the privilege of carrying a cell phone, consumers not only had to keep track of their minutes, they had to buy whatever type of phone their provider happened to be selling. They had to sign a one-year contract that carried a hefty early termination fee and was automatically extended another year if they replaced their phones or otherwise altered their service.

They had to pay additional charges for receiving or sending text messages charges that in some families with teenagers can mount up to hundreds of dollars each month. And until recently, they had to get a new phone number if they changed cell phone providers.

Since cell phones were introduced we have the Internet, iPods, DVDs, and GPS systems, not to mention Internet telephone service, including wireless WiFi, that's free or close to it.

So more and more consumers are asking, "what's so hot about cell phones and why is wireless being sold like long-distance service was in the 1950s?"

Lately, cracks have begun to appear in the mobile phone industry's unified front. Both Verizon and AT&T have liberalized their contracts, making it easier to cancel. Last fall Verizon announced that it would open its wireless network for use by all devices beginning in 2008.

Unlimited calling

Now, Verizon Wireless has taken the first step toward placing wireless communications on a comparable footing with landline services, at least when it comes to pricing. The second-largest U.S. mobile-phone carrier has rolled out a flat-rate subscription for unlimited calls.

The plans give customers all their calls anytime to anyone in the U.S., including landline phones at a flat rate of $99.99 monthly access. The company said its BroadbandAccess Plans are also being enhanced so customers now have two choices for Internet browsing, e-mail access and downloading files. The new BroadbandAccess plans, available on March 2, will offer customers monthly data plan options of 50 Megabytes (MB) or 5 Gigabytes (GB) (5,120 MB).

"Verizon Wireless is changing the way customers think about wireless," said Mike Lanman, Verizon Wireless chief marketing officer.

Perhaps a more accurate statement would be that customers are changing the way wireless providers think about wireless.

Verizon Rolls Out Unlimited Calling...

States Asked to Probe AT&T U-Verse Explosions

A group of African-American real estate brokers wants the attorneys general of five states to investigate "a rash of explosions" involving AT&T's U-Verse service.

U-Verse is AT&T's fiber-optic Internet, television and telephone service, now being rolled out on a limited basis to compete with cable television. It is similar to Verizon's FiOS service.

The complaint comes from the National Association of Real Estate Brokers (NAREB), which says the equipment boxes are hazardous and could affect housing values as well as causing property damage and injury if they explode.

"These large U-Verse cabinets have been proven to be hazardous from their early rollout stages," said Maria Kong, President of NAREB. "We cannot afford to take chances when it comes to the livelihood of residents who live near these boxes, or their property."

The incidents were blamed on batteries manufactured by Avestor, which has since gone out of business. AT&T has said it is replacing all of the batteries.

According to published reports, there are 17,000 utility cabinets equipped with similar batteries. Sales of homes near such boxes, the association argued, will show a dramatic drop-off until their security is ensured, imperiling the livelihood of African-American real estate professionals.

Problems were first reported with the cabinets back in October 2006. An AT&T U-Verse cabinet exploded near the home of a Houston-area elderly couple. A few months later, a second cabinet in the Houston area caught fire.

After the second fire was reported, an AT&T spokesperson confirmed that a "similar battery produced a small fire in another cabinet," NAREB said. Then, a third AT&T U-Verse cabinet exploded and caught fire in the Wisconsin community of Wauwatosa. The explosion was so powerful that the cabinet door, estimated to weigh 50 to 60 pounds, was blown off.

A group of African-American real estate brokers wants the attorneys general of five states to investigate "a rash of explosions" involving AT&T's U-Verse s...

Verizon Wireless Changes Customer Data Policy


Verizon Wireless has become the latest telecom company to sell data on its customers' calling habits to partners and affiliates, informing customers that unless they call a 1-800 number within thirty days of being notified of the change to "opt out," they'll have granted their implicit permission to share the data.

Verizon Wireless' policy change was noted by Jason Devitt, co-founder of mobile marketing company Skydeck.

Devitt posted a copy of the Verizon policy change notice on the company blog, noting that the list of permitted agents Verizon would share the data with was "pretty broad."

The Verizon agreement allows the data to be shared with [o]ur affiliates, agents and parent companies (including Vodafone) and their subsidiaries," apparently to be used to deliver targeted advertising of other Verizon services by third-party marketers.

Verizon spokesperson Jeffrey Nelson, responding to Devitt's comments, said that "Verizon Wireless isnt - and wont be selling - customer information to advertisers or marketers. This is to share info among Verizon companies only, as per FCC rules."

Sprint Nextel made a similar change to its policies in January 2007, informing customers by mail that if they did not call the provided 1-800 "opt out" number or mail in a form clarifying their desire to opt out, they would be enrolled in the data sharing program.

Nothing personal

Customer calling data, or "customer proprietary network information" (CPNI), doesn't contain personally identifying information such as your name or address.

But CPNI data can be used to track your calling habits, such as whom you call and for how long you speak to them, products you buy from that particular carrier, and options you may request or refuse when making purchases.

Although the Federal Communications Commission (FCC) has restrictions against the sale or sharing of CPNI data, a 2006 report by the Government Accountability Office (GAO) found that telecoms and wireless companies did not do enough to oversee the sharing of CPNI data with third-party companies or contractors they hired.

CPNI data was at the core of the many scandals involving the sale of personal cell phone records to third parties, or "pretexting." Companies such as Locatecell.com and Celltolls.com would buy CPNI data from insiders at phone companies and resell it to third parties, ranging from disgruntled spouses to private investigators and law enforcement.

The outcry against pretexting led to Congress passing a law to criminalize the practice, and the FCC to pass new rules strengthening the restrictions against illegally selling or sharing the information.

CPNI data also rests at the heart of the investigation into the National Security Agency's (NSA) warrantless surveillance on American citizens.

In addition to the actual wiretapping of domestic calls, major telecoms such as AT&T and Verizon are alleged to have provided calling data from millions of telecom customers to the NSA, in order to investigate the call records for signs of terrorist activity.

Verizon Wireless Changes Customer Data Policy...

AT&T Agrees to New Stolen Cell Phone Rules

In an agreement with California Attorney General Edmund G. Brown Jr., AT&T Mobility has agreed not to charge customers for calls made after their cell phones are lost or stolen.

"This groundbreaking settlement makes AT&T the first cell phone company that has agreed to protect its customers from cell phone rip-offs and other unauthorized uses," Brown said. "It is now time for the rest of the cell phone industry to step forward and follow AT&T's example."

Brown had alleged that the company violated California law, including Public Utilities Code section 2890, which bars phone companies from charging customers for unauthorized services.

"No cell phone company should profit from calls made by thieves or unauthorized users," Brown said.

The Attorney General's Office began the investigation in 2006 after several consumers complained they were being charged thousands of dollars for calls made on cell phones that were stolen. In one case, calls originated from Mexico, a country the customer had never visited.

Although customers could fully document that the calls were unauthorized, AT&T refused to credit the accounts.

The agreement requires the company to credit a customer's bill or immediately investigate customer reports that the calls were made after the phone was lost or stolen. The company may only charge a customer if an investigation determines that the customer actually authorized the charges.

The judgment requires AT&T Mobility to inform each of their customers of their legal rights regarding lost or stolen phones. Under the agreement, AT&T must either credit the disputed charges or inform customers of their legal rights which include:

• The right to have the case investigated within 30 days

• The right to provide information showing a customer did not authorize= the calls

• The right not to pay disputed charges during the investigation=20

• The right to appeal the outcome of an investigation to the California= Public Utilities Commission.

AT&T must notify customers--in writing--of these new requirements and assist customers to obtain credit for amounts already paid on lost or stolen phones, back to year 2003.

AT&T will also pay the Attorney General's Office $500,000 for costs of the investigation and for the Unfair Competition Law Fund, administered by the California District Attorneys Association.

The California law for cell phones is similar to that for credit cards: customers have a right to dispute unauthorized charges and request an investigation. Customers should not be held responsible for charges until the investigation concludes, Brown said.

In an agreement with California Attorney General Edmund G. Brown Jr., AT&T Mobility has agreed not to charge customers for calls made after their cell phon...

Minnesota Sues Sprint Nextel

The state of Minnesota has filed a lawsuit against Sprint Nextel Corporation for violating Minnesotas consumer protection laws by extending consumers' contracts without their knowledge or permission.

According to the complaint, Sprint Nextel extended the terms of consumers wireless contracts for up to two years without giving adequate disclosure or obtaining the knowing consent of the consumer when consumers made small changes to their wireless phone service.

Some of the changes that resulted in contract extensions included adding extra minutes or decreasing minutes, purchasing or replacing a phone, responding to solicitations for additional products or services, or receiving courtesy discounts.

Often the result of such practices is that the consumer is charged early termination fees of up to $200 when they try to cancel their wireless service.

When you receive complaints across the board, from firefighters to lawyers, from retirees to construction workers, all of whom feel they were unfairly manipulated by their cell phone company, you have a problem, Attorney General Lori Swanson said. She was joined at a State Capitol news conference by a number of Minnesota consumers who described their problems with the company.

Sprint Nextel is no stranger to complaints about its business practices. The Better Business Bureau reported that as of July 2007, it has received nationwide over 30,000 complaints against Sprint Nextel in the past 36 months.

ConsumerAffairs.com has about 2,300 active complaints about the company's practices.

Indeed, in the last three years, the cell phone industry has generated the most complaints with the Better Business Bureau than any other industry in America (there are over 3,600 other industries).

Consumers "tricked"

In a normal transaction, you have two parties coming together and making an agreement about a purchase. For these consumers, there was no real meeting of the minds. Rather, the company has tricked consumers into unknowingly extending their contract simply because they made a basic change to their plan, Swanson said.

The states complaint contends that Sprint Nextel violated Minnesotas Consumer Fraud Act and Deceptive Trade Practices Act.

The suit seeks to enjoin the company from further violations of the act. It also seeks civil penalties and restitution for Minnesota consumers injured by the companys practices.

Minnesota Sues Sprint Nextel...

Escape from Cell Phone Purgatory

Let me ask you a question. If you had a choice, which would you rather do -- have a tooth pulled or try to get out of your cell phone contract early without paying a fee?

Thats what I thought. Open wide!

A typical cell phone early termination fee (ETF) can cost $175.00 to $250.00 per line, and that's just from the carrier only. If you signed up through certain dealers -- such as a kiosk in a mall -- its possible they have an additional ETF, as high as $400.00 per line.

Bailing out of your contract early is easy, if you want to fork over the cash. However, try to leave without losing your wallet and it's another story.

ConsumerAffairs.com receives many complaints from people like Gary and Christina.

I have requested that they [Sprint] terminate my cell phone contract early without charging me the $400.00 in penalties because they [are] providing very poor service, wrote Gary, of Daniels, West Virginia. They tell me that I can either put up with their poor service until my contract expires, or ... pay a termination fee of $400.00.

In addition, Christina, of Baltimore, wrote, My husband and I began experiencing a very high amount of dropped calls on our Nextel mobile phones. Finally after 4 months of not being able to make a cell call without it being dropped, I called to cancel. Nextel is refusing to credit the early termination fee.

Just like Gary and Christina, many consumers are under the impression that a carrier must let you out of your contract if the service isnt up to par. However, the contract says otherwise. In fact, a cell phone contract will go to great lengths to stipulate that the service is not guaranteed to work.

But what if you move out of the service area?

Once again, the carrier is not required to let you off without paying the ETF. Some customer service reps will waive the fee as a courtesy but much depends on which rep answers the phone. Call your carrier numerous times if needed and be prepared to back up everything you say.

The Internet is filled with ways to avoid paying the early termination fee, but the majority of ideas are at best unethical and at worst illegal. Nevertheless, there are a few ways to get out without losing a small fortune, and do it in an ethical manner.

The materially adverse change clause

It is an understatement to say that your contract is tipped in favor of your carrier; it's not tipped -- it's turned on its head in favor of the carrier. However, the news is not all bad: all major carriers have what is called the material adverse change clause.

That clause provides that, in effect, if your carrier adds a new charge to your plan, they have changed the terms of your contract. They must give you notice and then youll have at least 14 days to bail out without paying an ETF. If you continue to use your service beyond the get out date specified by your carrier, that is an indication (called negative option) that you accept their changes.

As more people have become aware of this clause, carriers have grown stricter in what they consider a materially adverse change. You might have to ask for a supervisor and read to them the exact wording of your notice. Make sure to use the words materially adverse.

In any event, this clause alone gives you a good reason to read every notice sent to you -- promptly. If you miss the notice and the 14 days passes, you're out of luck.

Transfer the contract to someone else

You can legally skip-out on the termination fee by transferring your contract to someone else, as long as you follow the rules set forth by your carrier. All major carriers allow a transfer of contract, but the carriers differ in their protocol for transfer.

For example, although the new account holder will not need to pay an activation fee, he or she will need to pass a credit check and in some cases, sign a new contract.

It doesnt matter if the account holder has six months or 18 months left on their contract, the person assuming the contract will need to sign a one-year contract, said Verizon Wireless spokeswoman Georgia Taylor.

AT&T has a similar policy. Even if the account holder has only a month remaining, the receiving account holder must sign an 11-month contract from the date the transfer takes place.

Transferring your account can be a great way to avoid the ETF and, thanks to the Internet, youre not stuck with finding someone local to take over the contract.

Websites have popped up for the sole purpose of helping to find interested parties. Both CellSwapper.com and CellTradeUSA.com can help consumers who want to get out of their contract, as well as consumers who are looking to take over an account.

The cellular carrier will handle much of the transfer and its important to follow their instructions to the letter. Furthermore, before turning your phone over to someone else, ask your carrier how to wipe out your personal data on the phone.

You can also download instructions on how to erase phone data by visiting WirelessRecycling.com.

Escape from Cell Phone Purgatory; How to get out of your cell phone contract without paying a termination fee...

Appeals Court Shreds Out AT&T Arbitration Clause

In a major victory for consumers, the 9th U.S Circuit Court of Appeals in San Francisco has allowed a class action lawsuit against AT&Tto proceed, labeling restrictions in the company's contracts "unconscionable."

The court threw out the provision in Cingular/AT&T contracts that prohibits consumers from joining in class action suits, saying the waiver is unenforceable under California law.

The ruling is the latest in a series of federal court decisions that have held the class action waiver to be unenforceable.

The class action waivers -- also known as "forced arbitration clauses" -- are despised by consumer advocates who say their only purpose is to render consumers powerless to defend themselves against huge corporations.

Or as Wired.com blogger Rob Beschizza put it, the contracts "represent, in black and white, everything that's rotten about the relationship between company and consumer."

"These are often designed to deprive the buyer of as many rights as possible, and the argument over their legality goes on and on. This was one such example, seeking to replace the legal system with a corporate Monkey Court," Beschizza said.

The ruling gives the go-ahead to a class action consumer suit claiming Cingular Wireless service deteriorated after the mobile phone carrier was fully acquired by AT&T Inc. in 2004.

"Hopefully the trend will continue uninterrupted in the courts of other states, said William Weinstein, lead plaintiffs attorney in the case.

The 9th Circuit said its decision is consistent with at least 10 other cases that have come before federal courts in the state. Several of them have involved AT&T/Cingular Wireless.

A similar suit is currently pending in Washington state.

Appeals Court Shreds Out AT&T Arbitration Clause...

The 411 on Free 411

When was the last time you needed a phone number and had no choice but to call 411? Nancy Allen knows that feeling.

"As a home health care nurse I am constantly on the road," says Nancy. "It's easy to get the number from directory assistance using my cell phone, but I hate paying $1.50 for one little call. My bill is high enough already."

Nancy certainly isn't alone. The U.S. directory assistance business is a multi-billion dollar industry funded by one little call at a time. A 411 call from your cell phone can cost up to $1.79 per call and the same call from a land-line can cost up to $3.50.

Whats a frugal consumer to do?

You can continue to throw out your money, or you can build your bank account by checking out two free directory assistance services available today.

Google Voice Local Search

Although it is famous for their search engine, Google also offers a free directory assistance service called Google Voice Local Search. Available from any phone, you can dial 1-800-GOOG-411 (1-800-466-4411) and Google will give you the listing of any business in the U.S.

You can search by a specific business name or a category name. Once the business is found Google can connect you at no charge. In addition, if youre calling from a wireless phone, Google can send you the details by text message.

Google Voice Local Search is currently in a testing phase, so there might be kinks in the system. Furthermore, the system does not currently provide residential listings, unlike another free service called 1-800-FREE-411.

1-800-FREE-411

1-800-FREE-411 from Jingle Networks, Inc., allows you to access the same directory assistance database used by traditional phone companies, except without the annoying charge.

There are no limits on how many directory assistance calls you can make, and it doesnt matter if the call is from a land-line or cell phone.

Based on the same model used by numerous websites, 1-800-FREE-411 gives you the information you need -- at no cost -- because the service is supported by advertisers.

And now a word from our sponsors

Lets say you need the number of a specific insurance company. You dial 1-800-FREE-411 (1-800-373-3411) and are greeted with an automated system that will ask for the city and state. Next youre asked if the number belongs to a residence, business, or government agency.

Heres where 1-800-FREE-411 differs from traditional 411.

Instead of automatically hearing your requested number, youll first hear an advertisement, typically 10 to 12 seconds in length. In our example, you might hear an ad for a different insurance company. Youre then provided the number you requested and also given the option to be connected to the company that was advertised.

Notice that although you can be connected to the company that was advertised you wont be connected to the number you requested. Make sure and have pen and paper on hand to write down your number.

If requesting a residential number, the advertisement could be anything from an upcoming TV program to a vacation package from a travel agency.

Additionally, keep in mind that based on your wireless plan, you could still use up your minutes even though the call is toll free.

You can continue to throw out your money, or you can build your bank account by checking out two free directory assistance services available today....

Verizon Signs Florida Anti-Cramming Agreement

Verizon is the latest telephone company to sign an anti-cramming settlement with the state of Florida.

The company agreed to develop an early warning system designed to identify third-party companies that may attempt to place unauthorized charges on consumers phone bills.

Embarq, once part of Sprint, signed a similar agreement with Florida last month and AT&T; agreed to similar terms earlier. Verizon has more than 40 million access lines inside the coverage region affected by the agreement.

The practice known as cramming occurs when unauthorized charges are added to phone service bills without the consumers knowledge or consent.

Unfortunately, victims of cramming often dont realize they are being improperly billed until they have been paying the charges for a significant length of time, said Florida Attorney General Bill McCollum. Todays agreement is the third reached with major telephone companies serving our state, offering much needed protection to Floridas consumers.

As part of the agreement, Verizon will require merchants and billing and collection clearinghouses to forward all consumer complaints referencing cramming to the phone company.

If at least 220 complaints within the 28-state Verizon region reference the same company over a month-long period -- an average of eight complaints per state -- Verizon will take action against the company to protect telephone consumers.

These actions may include the requirement that the company accused of cramming send out written notices to all new Florida subscribers notifying them of the following:

• their service subscription;
• the date the charges will begin to appear on their Verizon bill;
• the amount of the charges, and
• how the consumer may cancel the service subscription.

If cramming continues, Verizon may cease doing business with the merchant.

The agreement follows similar settlements with Embarq and AT&T; and a nationwide settlement with Email Discount Network (EDN). The company had allegedly failed to clearly disclose that offers for Internet savings were not free and that customers who submitted personal information to the company would be charged unless they contacted EDN to cancel the charges.

More than 250,000 consumers nationwide were charged a monthly fee for the coupons. EDN agreed to make restitution to every consumer who was adversely affected by the companys business practices and who submits a claims form, with restitution expected to exceed $1 million.

The case involving Verizon was initiated last September when the Attorney General's Office initially sued EDN for cramming.

In conjunction with the lawsuit, the Attorney Generals Office and the Office of Public Counsel filed a joint petition before the Florida Public Service Commission against Verizon, Embarq and BellSouth seeking to protect Florida consumers from the deceptive practices.

The latest agreement is the final step in resolving the issue of how telephone companies with Florida customers will address cramming and what steps will be taken to proactively protect telephone consumers from the illegal practice, which occurs when unauthorized charges from third parties appear on phone bills, McCollum said.

More Scam Alerts ...

Verizon Signs Florida Anti-Cramming Agreement...

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Sprint: Don't Call Us, We'll Call You


In April 2007, an MSN Money-Zogby Poll showed that the winner of the Customer Service Hall of Shame went to wireless provider Sprint -- not an award that any company would want.

Now, irked by irksome customers and complainers, Sprint is striking back -- by cutting off users who call customer service 25 times per month or more.

One of those users is Rene, an eight-year Sprint customer.

I just got a new phone and plan five weeks ago, and to thank me, Sprint sends me a letter saying that my service is being terminated at the end of July.

Rene, who goes by the name MissDiva on the SprintUsers.com forum, had to call Sprint due to several billing errors. Some calls to customer service were dropped, which meant she had to call them back. Each call was a black mark against her.

If they would have fixed the problem on the first call, I wouldnt have to place a second call. This is how they repay me for being a loyal customer? Rene fumed.

To add insult to injury, Renes boyfriend repeatedly receives calls from Sprint asking him to add another line, even though he tells them not to call. It seems its fine for Sprint to call often, but a customer dare not call Sprint on a regular basis, he said.

Rene said she has tried to resolve the issue but has had no success. Sprint said they would call me back within 48 hours, but 4 days passed and still no call.

According to Sprint, approximately 1,000 customers received the termination letter. The letter says that any remaining balance will be wiped out and the subscriber wont pay an early termination fee.

That's a relatively low number, considering the constant stream of Sprint customers who complain to ConsumerAffairs.com that their repeated calls to Sprint fail to resolve service and billing problems.

Among the 2,234 Sprint complaints received by ConsumerAffairs.com:

Judith of Tiburon, Calif., who is hearing-impaired, said she began calling Sprint/Nextel in March to change her one-month-old phone because she could not hear its ring.

"I purchased another phone at a Sprint store and was told that I could use the phone on the hybrid account. That turned out not to be true and I've been charged for 2 separate accounts ever since" despite numerous calls to Sprint, Judith said.

Diana of Altamonte Springs, Fla., said Sprint cut off her service for non-payment even though she pays her bill every month through Embarq, her local landline carrier.

"Numerous calls to Sprint PCS customer NO service has resulting in nothing but frustration. They insist that I owe them money which I have already paid to Embarq," she said.

Yadira of Bronx, N.Y., said she called repeatedly to follow-up on the arrival of a replacement phone. "I get disconnected or they'll place me on hold and completely forget that Im there," she said.

In a masterpiece of bad timing, shortly after mailing the termination notices, Sprint released a statement concerning its new partnership with NASCAR.

The Sprint/NASCAR press release says, in part, This is an evolutionary time for Sprint Nextel's brand. Our new brand campaign focuses on the importance of speed in people's daily lives and illustrates their ability to get information where they want it, when they want it.

Unless they have to call Sprint for it, that is.

Sprint: Don't Call Us, We'll Call You...

Appeals Court Gives Vonage a Reprieve

Vonage CEO Jeffrey Citron declared it "business as usual" today after a federal appeals court allowed the Internet phone company to continue signing new customers.

Vonage will still have to make its case before the appeals court on June 25, but today's action removes the threat that the company would starve to death while awaiting oral arguments.

U.S. District Judge Claude Hilton had ordered Vonage to stop signing new customers after a jury found that it had infringed on several patents held by telecom giant Verizon.

The U.S. Court of Appeals for the Federal Circuit in Washington issued a temporary stay of Hilton's order on April 7 and today extended the stay until oral arguments can be heard.

Verizon sued Vonage in June, claiming that Vonage had illegally used key technologies owned by Verizon to connect Internet calls to regular telephone networks and claimed it had lost hundreds of thousands of customers to Vonage as a result of the infringement.

Hilton's order that the company stop signing new customers was the equivalent of standing on a comatose patient's oxygen line, as Vonage needs to keep signing new customers to make up for those it loses.

Vonage attracts customers eager to save money on their phone bill but loses many of them when they have difficulty figuring out how to make the sytem work. Others aren't happy with the quality of the Internet calls.

Billing disputes are also a common theme in the more than 400 Vonage complaints filed with ConsumerAffairs.com.

"I had dropped calls, couldn't call or receive calls, etc. So, I decided to go back to my land line," said Ashby of Forest Hill, Md.

"Vonage promised service that could not be delivered, stalled for several months and have billed me for service not delivered," said Peter of Big Bear Lake, Calif. "I have called for a resolution on this matter many times, they simply shuttle the calls from one nincompoop to another until the customer gives up."

Vonage also faces a consumer class action filed in U.S. District Court in California which charges that it misled consumers about the quality and reliability of its service and engaged in false advertising and deceptive business practices.

Citron Confident

Although it still faces what may be a difficult day in court, Citron was feeling optimistic.

"We have not infringed on any of Verizon's technology and remain optimistic that we will ultimately prevail," he said in a statement. The company's stock jumped 29 percent, the biggest one-day jump since its went public in May 2006.

Tough Competitors

Like many companies that try to capitalize on new technology, Vonage has attracted numerous competitors, including the huge telephone and cable companies it had hoped to displace. Much of the growth Vonage had hoped for has instead gone to the cable companies, which have aggressively rolled out telephone service packages bundled with high-speed Internet and video services.

Between them, Cablevision and Time Warner have signed more than 3 million customers, business that Vonage had been counting on to meet its projections.

Vonage has also run afoul of the regulatory thicket that is the telecom market. It has been required by regulators to add many of the very fees and surcharges already collected by its old-line competitors. That has taken away much of the low-cost advantage Vonage had been counting on.

Defenders

Not everyone is critical of Vonage. The president of CompTel, a telecommunications trade association, says Verizon is using its market dominance to stamp out competition.

"We're seeing a still-dominant monopoly aggressively using its monopoly revenue to pursue and drive out of the market competitors," Earl Comstock told The Washington Post. "This isn't about protecting their patents. It's about crushing their competitors."

Comstock predicted Verizon will use the same tactic to go after other competitors.

Appeals Court Gives Vonage a Reprieve...

Survey: T-Mobile Tops in Customer Satisfaction

T-Mobile ranks highest in all six regions (including three ties) of wireless service, performing particularly well in customer care, cost of service and billing, according to J.D. Power and Associates. It's the fifth consecutive reporting period that the company has ranked highest across all six regions.

Verizon Wireless ties for the highest ranking in three regions: Mid-Atlantic, Southeast and North Central. Overall, the provider performs particularly well in call quality and brand image.

Alltel ranks highest in a tie in the Southeast Region, while U.S. Cellular and AT&T (formerly Cingular Wireless) tie for the highest ranking in the North Central region.

Study results by region are:

• Northeast Region: T-Mobile ranks highest, performing particularly well in service plan options, customer service, cost of service and billing.

• Mid-Atlantic Region: T-Mobile and Verizon Wireless rank highest in a tie. T-Mobile performs well in cost of service, service plan options and customer care, while Verizon Wireless receives high ratings from customers in call quality and brand image.

• Southeast Region: Alltel, T-Mobile and Verizon Wireless rank highest in a three-way tie. Alltel performs well in billing, while T-Mobile receives high ratings in cost of service, service plan options and billing, and Verizon Wireless performs well in the call quality and brand image factors.

• North Central Region: AT&T; (formerly Cingular Wireless), T-Mobile, U.S. Cellular and Verizon Wireless tie to rank highest in customer satisfaction in the most competitive region in the study. AT&T; performs above the regional average in cost of service, call quality and billing. T-Mobile receives high ratings from customers in cost of service and billing, while both U.S. Cellular and Verizon Wireless perform particularly well in call quality and customer care.

• Southwest Region: T-Mobile ranks highest with strong performances in five of the six factors that determine overall satisfaction: customer service, service plan options, cost of service, brand image and billing.

• West Region: T-Mobile ranks highest, performing particularly well in billing, service plan options, customer care and cost of service. As usage continuously increases and the number of new data-centric service offerings grow, call performance and network reliability are becoming more critical to wireless customers demanding consistent quality connections, according to the study.

The semiannual study measures customer satisfaction based on 42 specific service-related measures grouped into six key factors that impact overall wireless carrier performance. In order of importance, they are:

• call performance and reliability (32%);
• brand image (17%);
• cost of service (14%);
• service plan options (14%); billing (12%) and
• customer service (11%).

Carriers are ranked across six regions in the United States: Northeast, Mid-Atlantic, Southeast, North Central, Southwest and West.

The study finds that the call performance and reliability factor has increased in importance from 26 percent of the overall satisfaction score in 2005 to 32 percent in 2007. Specifically, call quality issues such as echoes and timely notification of voice mail messages have received the most significant increase in importance.

Subsequently, the customer service factor has become less critical in determining overall wireless satisfaction -- declining from 17 percent in 2005 to 11 percent in the 2007 study.

"It's no surprise that more carriers now advertise the importance of a reliable network as they try to differentiate themselves from the competition," said Kirk Parsons, senior director of wireless services at J.D. Power and Associates.

"Wireless network quality is key in distinguishing carriers that meet and exceed the service expectations of their customers from those that do not. However, there is still room for improvement, as 31 percent of customers who contact their carrier with a problem complain of call quality issues, such as a high degree of dropped calls and initial disconnects."

T-Mobile ranks highest in all six regions (including three ties) of wireless service, performing particularly well in customer care, cost of service and bi...

Vonage CEO Exits as Company Struggles to Survive

Embattled Internet telephone provider Vonage said its CEO, Michael Snyder, has stepped down. The company's founder and chairman, Jeffrey Citron, will serve as interim CEO while a replacement is found.

Vonage also said it will cut about 10% of its 1,800 employees and impose a hiring freeze as it tries to trim $30 million in operating costs during tghe second quarter.

Vonage is locked in a bitter struggle with Verizon, which claims the Internet start-up has infringed several of its patents. A federal district court jury in Virginia agreed and last week a federal judge ordered the company to stop signing new customers, a virtual death sentence.

But Vonage got at least a temporary reprive when a federal appeals court temporarily stayed the order.

Vonage is running low on cash and has promised its investors it would grow quickly to reach profitability. It's been losing customers nearly as fast as it signs new ones, so if the judge's no-new-customers order is reimposed, Vonage could see its existing base of 2.2 million customers erode quickly.

Vonage has about 2.4 million customers nationwide. It has said in its reports to investors that it spent $275 on marketing costs for every subscriber it adds, a figure Citron said is too high.

If the appeals court rules against Vonage, it would likely reimpose the ban on signing new customers laid down by U.S. District Judge Claude Hilton. In his ruling, Hilton said he considered the possibility that his order could result in bankruptcy for Vonage, but said he concluded that there is adequate competition in the telecommunications industry and that, whether or not Vonage survives, the public will have adequate access to telephone service.

Snyder, a former executive at Tyco International, was hired as CEO a few months before Vonage's initial public offering last May, partly to smooth over investor concerns about Citron, who got into hot water with securities regulators in the late 1990s when he was CEO of Datek Online, an online brokerage firm.

Citron, then 32, was fined $22.5 million for illegal trading and fraudulent bookkeeping. The Securities and Exchange Commission (SEC) said it was, at the time, one of the largest securities fraud settlements ever. Citron, who admitted no wrongdoing in the settlement, was permanently barred from the securities industry.

Vonage hasn't been kind to investors. Its shares are down more than 80% since its IPO, as cable systems ramp up their telephone service packages and Verizon keeps the company tied down in court. Vonage also faces a suit from Sprint Nextel Corp. that has not yet come to trial.

Vonage executives insist they will survive the legal challenge and claim to be developing a "work-around" solution that will let them continue to operate without infringing Verizon's patents.

Customers Restless

Although it advertises extensively and attracts a steady stream of new customers, Vonage has had a hard time hanging onto customers. Many complain about the audio quality of their phone calls, while others are never able to master the hook-up process, which requires installing a router between their Internet connection and their telephone. Billing disputes are also a common theme in the more than 400 Vonage complaints filed with ConsumerAffairs.com.

"I had dropped calls, couldn't call or receive calls, etc. So, I decided to go back to my land line," said Ashby of Forest Hill, Md.

"Vonage promised service that could not be delivered, stalled for several months and have billed me for service not delivered," said Peter of Big Bear Lake, Calif. "I have called for a resolution on this matter many times, they simply shuttle the calls from one nincompoop to another until the customer gives up."

Vonage also faces a consumer class action filed in U.S. District Court in California which charges that it misled consumers about the quality and reliability of its service and engaged in false advertising and deceptive business practices.

Verizon Suit

Verizon sued Vonage in June, claiming that Vonage had illegally used key technologies owned by Verizon to connect Internet calls to regular telephone networks and claimed it had lost hundreds of thousands of customers to Vonage as a result of the infringement.

Like many companies that try to capitalize on new technology, Vonage has attracted numerous competitors, including the huge telephone and cable companies it had hoped to displace. Much of the growth Vonage had hoped for has instead gone to the cable companies, which have aggressively rolled out telephone service packages bundled with high-speed Internet and video services.

Between them, Cablevision and Time Warner have signed more than 3 million customers, business that Vonage had been counting on to meet its projections.

Vonage has also run afoul of the regulatory thicket that is the telecom market. It has been required by regulators to add many of the very fees and surcharges already collected by its old-line competitors. That has taken away much of the low-cost advantage Vonage had been counting on.

Since it sells itself as a replacement for traditional telephone service, Vonage also found itself required to beef up its 911 service, a major unanticipated expense.

Defenders

Not everyone is critical of Vonage. The president of CompTel, a telecommunications trade association, says Verizon is using its market dominance to stamp out competition.

"We're seeing a still-dominant monopoly aggressively using its monopoly revenue to pursue and drive out of the market competitors," Earl Comstock told The Washington Post. "This isn't about protecting their patents. It's about crushing their competitors."

Comstock predicted Verizon will use the same tactic to go after other competitors.

Vonage CEO Exits as Company Struggles to Survive...

Vonage Gets a Reprieve but its Future is Murky

Internet telephone pioneer Vonage got at least a temporary reprive from an almost certain death sentence when a federal appeals court temporarily stayed a federal judge's order that Vonage stop signing new customers until it stops infringing on patents held by Verizon.

U.S. District Judge Claude Hilton ruled Friday morning that Vonage stop signing new customers after a jury found that it had infringed on several patents held by telecom giant Verizon. Hilton said he considered the possibility that his order could result in bankruptcy for Vonage, which has seen its stock price plummet in recent months.

But Hilton said he concluded that there is adequate competition in the telecommunications industry and that, whether or not Vonage survives, the public will have adequate access to telephone service.

Vonage is running low on cash and has promised its investors it will grow quickly to reach profitability. It's been losing customers nearly as fast as it signs new ones, so if the judge's no-new-customers order is reimposed, Vonage could see its existing base of 2.2 million customers erode quickly.

It's also possible existing customers will begin deserting Vonage more quickly, fearing that it could go out of business and leave them without service.

Customers Restless

Vonage says it is working to find ways around the patented processes so that it can get back in the race. But even if it solves the technical and legal hurdles, Vonage faces a growing chorus of consumer complaints that may be nearly as effective as a court order in stemming future sales.

Although it advertises extensively and attracts a steady stream of new customers, Vonage has had a hard time hanging onto customers. Many complain about the audio quality of their phone calls, while others are never able to master the hook-up process, which requires installing a router between their Internet connection and their telephone. Billing disputes are also a common theme in the more than 400 Vonage complaints filed with ConsumerAffairs.com.

"I had dropped calls, couldn't call or receive calls, etc. So, I decided to go back to my land line," said Ashby of Forest Hill, Md.

"Vonage promised service that could not be delivered, stalled for several months and have billed me for service not delivered," said Peter of Big Bear Lake, Calif. "I have called for a resolution on this matter many times, they simply shuttle the calls from one nincompoop to another until the customer gives up."

Vonage also faces a consumer class action filed in U.S. District Court in California which charges that it misled consumers about the quality and reliability of its service and engaged in false advertising and deceptive business practices.

Verizon Suit

Verizon sued Vonage in June, claiming that Vonage had illegally used key technologies owned by Verizon to connect Internet calls to regular telephone networks and claimed it had lost hundreds of thousands of customers to Vonage as a result of the infringement.

Like many companies that try to capitalize on new technology, Vonage has attracted numerous competitors, including the huge telephone and cable companies it had hoped to displace. Much of the growth Vonage had hoped for has instead gone to the cable companies, which have aggressively rolled out telephone service packages bundled with high-speed Internet and video services.

Between them, Cablevision and Time Warner have signed more than 3 million customers, business that Vonage had been counting on to meet its projections.

Vonage has also run afoul of the regulatory thicket that is the telecom market. It has been required by regulators to add many of the very fees and surcharges already collected by its old-line competitors. That has taken away much of the low-cost advantage Vonage had been counting on.

Since it sells itself as a replacement for traditional telephone service, Vonage also found itself required to beef up its 911 service, a major unanticipated expense.

Defenders

Not everyone is critical of Vonage. The president of CompTel, a telecommunications trade association, says Verizon is using its market dominance to stamp out competition.

"We're seeing a still-dominant monopoly aggressively using its monopoly revenue to pursue and drive out of the market competitors," Earl Comstock told The Washington Post. "This isn't about protecting their patents. It's about crushing their competitors."

Comstock predicted Verizon will use the same tactic to go after other competitors.

Vonage Gets a Reprieve but its Future is Murky...

Judge Orders Vonage to Stop Signing New Customers

In the latest blow to Internet telephone carrier Vonage, a federal judge has ruled the company must stop signing up new customers until it stops infringing on patents held by Verizon.

Vonage has promised its investors it will grow quickly to reach profitability -- something it won't be able to do if it can't sign new customers. The company said it will immediately appeal the judge's ruling, which followed a decision by a jury in Alexandria, Va., that Vonage had infringed on key Verizon patents.

Vonage also faces a consumer class action filed in U.S. District Court in California which charges that it misled consumers about the quality and reliability of its service and engaged in false advertising and deceptive business practices.

In his decision, U.S. District Judge Claude Hilton said he considered whether the order could result in bankruptcy for Vonage, which has seen its stock price plummet in recent months. He said he concluded that there is adequate competition in the telecommunications industry and that, whether or not Vonage survives, the public will have adequate access to telephone service.

Verizon sued Vonage in June, claiming that Vonage had illegally used key technologies owned by Verizon to connect Internet calls to regular telephone networks and claimed it had lost hundreds of thousands of customers to Vonage as a result of the infringement.

Vonage, which currently has 2.2 million subscribers, says it is working on alternative means of handling calls.

Judge Orders Vonage to Stop Signing New Customers...

Class Action Charges Vonage Deceived Consumers

A consumer class action filed in U.S. District Court in California charges that Vonage, the nation's largest Internet telephone provider, misled consumers about the quality and reliability of its service and engaged in false advertising and deceptive business practices.

In the suit, plaintiff Kai Porter of Inglewood, California, alleges that she signed up for the Vonage service on November 18, 2006 and asked that her existing landline number be transferred to her new Vonage account.

When the service did not work as promised, Porter canceled within 30 days of activating her account, expecting to receive a full refund under the company's widely-advertised "Money-Back Guarantee." She learned on December 27 that Vonage had not closed her account and did not intend to honor the guarantee.

Vonage promotes its service as an alternative to traditional telephone service. It spent more than $500 million on advertising in 2005 and the first nine months of 2006, making it one of the largest advertisers on the Internet, the suit alleges.

In its advertising, the company promises "higher quality" but, in fact, the suit charges, the quality and reliability of the service is inferior to traditional telephone service, with problems ranging from dropped calls to service outages and equipment conflicts. "Vonage knows about these problems but conceals them from consumers," the suit alleges.

Porter also alleges that:

• Vonage touts its customer service when in fact, consumers trying to call for assistance encounter long hold times, hang ups, multiple transfers and representatives who merely read from scripts;

• Vonage advertises "no annual contracts" but invokes a 12-page "terms of service" when customers try to cancel;

• Vonage charges consumers who cancel within two years of account activation a "disconnect fee" of $39.99 -- in effect, an early-termination fee;

• Vonage drags its feet when processing cancellations and continues to charge consumers' credit cards in the meantime;

• Vonage advertises a "Money-Back Guarantee" and "One Month FREE," stating on its website, "There's no risk to trying Vonage service. Our hassle-free Money-Back Guarantee policy guarantees your satisfaction." Vonage's website states that a consumer is eligible for the Money-Back Guarantee if she cancels her service "within 30 days of account activation." But consumers who try to cancel the service within 30 days of beginning to use the VoIP service learn that Vonage does not consider the 30-day "free" period to begin when the customer is first able to use the service, but rather much earlier -- the moment the customer contacts Vonage to sign up for the VoIP service. At that time, the customer has not even received the equipment needed to use the service, which Vonage states it will ship "within 5 days."

• In addition, one of Vonage's key selling points is that consumers can keep their current telephone number (either landline or cell) when they switch to Vonage's VoIP service, but Vonage's website states that it will take "a minimum of 20 days" to transfer the telephone number. A Vonage consumer will thus have 10 days or less to evaluate the service and decide whether to cancel and attempt to invoke the Money-Back Guarantee.

• When Vonage determines that a consumer canceled after the 30-day Money-Back Guarantee period expired, Vonage penalizes the consumer by charging not only the activation fee and a monthly service fee, but the $39.99 disconnect fee as well. Vonage will also charge the consumer for the amount of any "instant rebate" she received on the cost of the equipment required to use the service, which can total $50 or more.

The lawsuit also charges that the mandatory arbitration clause in Vonage's terms of service is unconscionable and unenforceable and that Vonage's terms of service violate California's Consumers Legal Remedies Act.

The case seeks damages and reimbursement for all California consumers affected by Vonage's actions.

Representing Porter are attorneys Daniel Girard of Girard Gibbs LLP, San Francisco, and Richard Doherty of Horwitz, Horwitz & Associates, Chicago.

Class Action Charges Vonage Deceived Consumers...

Mayo Clinic Finds Cell Phones Safe in Hospitals

When you enter most health care facilities, the first thing you see is usually a sign asking you to turn off your cell phone.

But calls made on cellular phones have no negative impact on hospital medical devices, dispelling the long-held notion that they are unsafe to use in health care facilities, according to Mayo Clinic researchers.

In a study published in the March issue of Mayo Clinic Proceedings, researchers say normal use of cell phones results in no noticeable interference with patient care equipment. Three hundred tests were performed over a five-month period in 2006, without a single problem incurred.

Involved in the study were two cellular phones which used different technologies from different carriers and 192 medical devices. Tests were performed at Mayo Clinic campus in Rochester.

The study's authors say the findings should prompt hospitals to alter or abandon their bans on cell phone use.

Mayo Clinic leaders are reviewing the facility's cell phone ban because of the study's findings, says David Hayes, M.D., of the Division of Cardiovascular Diseases and a study author.

Cell phone bans inconvenience patients and their families who must exit hospitals to place calls, the study's authors say.

The latest study revisits two earlier studies that were done 'in vitro' (i.e., the equipment wasn't connected to the patients), which also found minimal interaction from cell phones used in health care facilities. Dr. Hayes says the latest study bolsters the notion that cells phones are safe to use in hospitals.

Mayo Clinic Finds Cell Phones Safe in Hospitals...

Texas Sues Sprint Nextel

Texas Attorney General Greg Abbott has taken legal action to stop Sprint Nextel Corp. from using what he claims are deceptively worded wireless telephone fees.

According to the attorney general's lawsuit, Sprint Spectrum, a subsidiary of Sprint Nextel, violated the Texas Deceptive Trade Practices Act by implying that an additional fee on customers' bills was a state-imposed tax. Abbott also charged Sprint Nextel with violating a 2004 court order prohibiting the company from deceptive billing practices.

"Sprint Nextel has defrauded its customers and violated a court order, blatantly disregarding the laws of the State of Texas," Abbott said. "Texans will not tolerate Sprint Nextel's unlawful business practices. Once again, the Office of Attorney General is taking decisive legal action to crack down on Sprint Nextel's false, misleading, and deceptive acts."

In January, Sprint Nextel began charging Texas customers a 1 percent fee, claiming it was necessary to reimburse the company for a state-imposed tax.

Sprint Nextel describes this fee as a "Texas Margin Fee Reimbursement," wording which the Attorney General's lawsuit alleges is deceptive because the tax does not become effective until Jan. 1, 2008, and has not been set at a 1 percent rate.

The attorney general also charged Sprint Nextel with violating a court-approved agreement prohibiting Sprint from implying that their discretionary fees are required by the government.

The agreement stems from a 2004 investigation into Sprint's deceptive billing practices. Under the court order, the company is required to clearly separate government-mandated charges from those imposed at Sprint Nextel's discretion.

The lawsuit, which requests temporary and permanent injunctions against Sprint Nextel, asks the court to stop the deceptive billings and to compel the company to reimburse all customers who paid this fee. The petition also seeks civil penalties of $20,000 per violation under the Texas Deceptive Trade Practices Act.

Texas Sues Sprint Nextel...

Verizon Wireless Raises Text Message Rate

The ten-cent text message may be going the way of the 25-cent phone call.

Verizon Wireless has just announced a 33 percent increase in its text message rate, raising the price to sending or receiving a message from a dime to $.15.

The increase applies to customers without a text message plan and follows a similar move by Sprint/Nextel and AT&T;/Cingular. Customers with text plans are not affected.

Verizon says nearly half of its customers use text messaging features but it's unclear how many have monthly plans and how many pay as they go.

Text messaging costs can easily push up the monthly cost of owning a cell phone and have been a frequent source of friction in households with teenagers.

Text messages are transmitted on the same system that voice calls, but instead of getting a call, customers receive a printed message on their phone's screen. Since most phones lack keyboards, customers type their messages by multi-tapping on a phone's number pad to choose letters.

Though in theory anyone could be an adept text messager, teens and young adults have been the quickest adopters of this somewhat cumbersome means of communicating.

Verizon Wireless Raises Text Message Rate...

AT&T Trashes Cingular Brand

What's in a name? If the name is AT&T, a lot of corporate ego, that's what.

Cingular Wireless, which used to be called Cellular One, is now owned by AT&T;, which has been called a lot of things, and is getting a new name -- "Wireless from AT&T.;" That's not to be confused with the old AT&T; Wireless service that was purchased by Cingular back in 2004.

Confused? Wait, it gets worse.

It's all a result of the merger and acquisition game -- AT&T; has owned part of Cingular since being acquired by co-parent company SBC Communications. Now AT&T; has just merged with Cingular's other parent, BellSouth.

The AT&T; name just seems to stick with this crowd. When SBC, formerly Southwestern Bell, bought AT&T; a few years ago, it planned to continue calling itself SBC. But after sleeping on it a few nights, inspiration struck and SBC changed its name to -- you guessed it -- AT&T.;

Like a black hole, AT&T; goes around sucking other telephone companies into its maw and renaming them. Let's see, there was Ameritech, Pacific Telesis, SNET and probably a few others we've forgotten about.

Never mind that SBC and BellSouth during their few decades of freedom from AT&T; spent an estimated $4 billion -- that's $4 billion -- building the Cingular brand, which is regarded by everyone except aging white men who work for AT&T; as a much cooler name than AT&T.; After all, didn't AT&T; Wireless have a reputation for having a clunky network and poor customer service?

Didn't Cingular just do a deal with Apple to provide the network for the iPhone? Didn't Cingular ingratiate itself with every teen-ager in the Western world by sponsoring "American Idol" and counting all those votes for Bucky, Kellie, Taylor and Katharine?

Haven't expensive branding consultant laughed aloud at the idea of trashing a world-class brand like Cingular in favor of a stodgy old scandal-ridden 1970s-sounding moniker like AT&T;?

Doesn't matter.

Starting Monday, Cingular stores will start changing their signs, stationery and uniforms; new ads will start appearing with AT&T;'s blue-globe-of-death logo instead of Cingular's cheery Big Orange motif.

The rationable offered by AT&T;'s dilberts is that consumers will now flock to AT&T; stores to buy more than just cell phones. Oh yes, they'll also be in hot pursuit of high-speed Interent, local telephone service and all those other cutting-edge AT&T; services.

Will it happen? Stay on the line to find out.

AT&T Trashes Cingular Brand...

Copyright Office "Unlocks" Cell Phones

Of the many ways cell phone carriers gouge consumers, one of the most egregious is making it impossible to take your phone with you when you switch to a new provider.

Moving your phone between carriers has been considered an infringement of the old carrier's property rights, so customers were forced to turn in or junk their old phones, and pay all sorts of extra fees to get a new phone along with their new plan.

But beginning in December, U.S. copyright law provides an exemption for consumers who want to "unlock" their cellphones and take them along when switching providers.

The exemption was one of six announced as part of regular revisions to the Digital Millenium Copyright Act (DMCA), the 800-pound-gorilla of technology-related copyright law in the U.S.

The ruling by the U.S. Copyright Office stated that the "software lock" preventing customers from using the same phone with different carriers "appears to be limited to restricting the owner's use of the mobile handset to support a business model, rather than to protect access to a copyrighted work itself."

"The underlying activity sought to be performed by the owner of the handset is to allow the handset to do what it was manufactured to do -- lawfully connect to any carrier. This is a noninfringing activity by the user," said Chief Register Marybeth Peters.

Wireless carriers typically lure customers with the promise of rebates and instant savings for new phones, but only if they sign multi-year contracts with heavy termination fees. The new phone also often comes with a "handset activation fee," which negates much of the customers' savings.

Unlocked phones that are not attached to any carrier are often prohibitively expensive, sometimes costing double what they would with a new carrier contract.

Selling unlocked cellphones on auction sites such as eBay has been a booming "grey market," and has earned the wrath of the wireless industry. Wireless lobby association CTIA and prepaid phone company TracFone both submitted unsolicited statements opposing the exemption.

The Register's office criticized CTIA and TracFone for not submitting their statements in the time allowed.

"Not only would acceptance of the late filings wreak havoc on the decisionmaking process, but it also would be fundamentally unfair to the parties who have made timely submissions, and in particular to the proponents of the exemption."

The exemption for unlocked cellphones will last three years, until the next time the Copyright Office reexamines the DMCA for potential new exemptions.

Supporters of the exemptions are pinning their hopes on the new Democratic Congress supporting legislation to reform the DMCA and make the exemptions permanent, although the Democratic record of appeasing the telecommunications industry is not less unseemly than the GOP's.

Rootkit Revisions

An other major ruling enables security researchers to circumvent copy-protected audio CDs -- but only to test, investigate, and/or fix any security flaws.

The revision came about as a result of the Sony rootkit scandal, when the company sold CDs that contained software designed to prevent copying the content, but also caused the user's computer to be vulnerable to hackers, and possibly causing catastrophic damage to the computer if removed.

Under the terms of the DMCA, any attempt to circumvent the rootkit or disable it would technically be considered a breach of Sony's copyright, and could be punished with fines or even criminal prosecution.

Although Sony eventually agreed to a settlement for the many class-action suits filed against it in the rootkit case, many legal questions remained unresolved.

In making her recommendation to exempt security researchers, Peters pointed out that the damage from rootkits was not only a consumer issue, but a national security issue, noting that the Department of Homeland Security had issued warnings about the Sony rootkit.

"[I]t could be argued that research into and correction of security flaws in access controls ultimately will have a positive impact on the market for or value of copyrighted works, to the extent that it results in the marketing of copies of copyrighted works that do not pose computer security risks for consumers," Peters said.

Copyright Office Unlocks Cell Phones...

Article Image

New Cell Phones Target Seniors

Advertisements for cell phone companies and the features they offer make one thing abundantly clear -- mobile communications are primarily designed for, and driven by, young people. But what about older consumers? Senior citizens appear to be the one market that cell phone companies have missed.

GreatCall co-founders Cooper & Harris

"In the early days, cell phones were easy to use. As cellular went digital, great things started to happen. But all this new technology left a very large segment of the population behind," said Arlene Harris, CEO and co-founder of GreatCall, Inc., which last month introduced a cell phone service called Jitterbug, designed especially for seniors.

While traditional cell phones allow users to send text messages, take pictures, listen to music and change ring tones daily, GreatCall prides itself on the bare bones, simple nature of its service. Instead of being part of the user's daily life, it is a lifeline to be used only in emergencies, or other rare occasions.

Rather than the dizzying array of handsets offered by traditional mobile phone companies, GreatCall's Jitterbug offers just two phones, both designed for technology-averse seniors.

The phones are both made by Samsung and are identical, expect for one important feature. One phone has a traditional telephone key pad, with oversized buttons and an easy-to-read screen.

The second has only three large buttons. One is programmed to call 911, one is programmed to call a family member or neighbor and the third is programmed to call an operator. The user simply pushes the button to connect to an operator, who will place the call for the user.

When activating a Jitterbug phone, the user will hear a dial tone -- something most seniors are accustomed to hearing when using a phone but something absent from today's cell phones. The company cites research showing older consumers would use cell phones if they were simpler to operate.

In a recent analysis of the new Jitterbug service, the Telecommunications Research and Action Center questioned the costs associated with the new service. It noted that the handset is expensive -- $147. It also questioned fees associated with the various calling plans, which offer few monthly minutes.

Compared to offerings by traditional mobile phone companies like Verizon and Cingular, the costs are indeed slightly higher. Motorola's popular Razor Phone normally lists for $100, though there are plenty of phones available as low as $19.95, with a two-year agreement.

Costs of the handset aside, the monthly cost of a Jitterbug is well below both Verizon Wireless' and Cingular's least expensive plans. While the latter assume their users will make maximum use of their phones, Jitterbug assumes its customers will make calls only rarely.

The lowest price Jitterbug plan is $10 a month with no minutes included. The user is charged $.35 a minute for air time. It is called the "basic emergency" package, meaning users are expected to call only when they have to. For $15 a month the user gets 30 "anytime" minutes.

Compare that to the lowest priced individual plans offered by both Verizon Wireless and Cingular. Both companies offer an individual plan that includes 450 monthly "anytime" minutes for $39.99. With a family plan that already has two phones, a third can be added for an additional $9.99 a month.

Still, TRAC remains skeptical, accusing the company of being "light on details" and expressing concern that Jitterbug is not sold in stores. If there are any customer service problems, they must be dealt with online or by phone.

Harris and her husband and co-founder Martin Cooper have won praise from some seniors advocates and both are approaching senior citizen-hood themselves. Both also have long careers in the industry.

Cooper is widely recognized as a pioneer and inventor in the personal and wireless telecommunications industry. He introduced the first portable cellular radiotelephone in 1973 -- and his resume says he is cited in the Guinness Book of World Records for making the first cellular phone call.

Harris has 35 years in the industry and has seen a lot of change. But with Jitterbug, she says, she's borrowing a lot of older technology that today's young people might find quaint, but the older generation might find comforting.

"With Jitterbug, we're going back to some high-quality, old-fashioned ways of doing things," she said, "very much like it was when I was manning the switchboards to connect people at my family's communications business in the 1950's. We're committed to getting it right."

Advertisements for cell phone companies and the features they offer make one thing abundantly clear - mobile communications are primarily designed for, and...

Alarm Companies Alarmed Over Cell Phone Transition

The sun is setting on the United States' first national cellular phone technology, known as Advanced Mobile Phone Service (AMPS).

While for most this means farewell to a cell phone the size and weight of a brick, for others it could mean interference with hearing aids, an ineffective home alarm system or no cell phone reception in rural areas.

Under an FCC docket known as 01-108, cell phone companies will no longer be required to offer AMPS service starting in February 2008. Although the docket was introduced in 2002, some businesses are still complaining that there is not enough time to upgrade to newer technology. Some consumers are complaining they will lose their cell phone service.

Larger cell phone companies like Verizon Wireless have presumably wanted to ditch the AMPS service for many years because it amounts to an extra cost with no corresponding increase in business.

When the FCC mandated AMPS in the early 1980s, it was a way to lower the price of cell phones and cellular network service by standardizing the technology and forcing competition in every market.

The frequency bandwidth for cell phones in each market was divided into two equal parts. Then, two companies would bid on those halves.

By standardizing the technology, a consumer could travel around the country and still get service by "roaming" in another company's service area. It also allowed consumers to keep the same phone while switching service.

But today, it seems like the only person still using AMPS technology is Zack Morris on "Saved by the Bell" reruns. What were once some of the most coveted frequencies by telecommunications companies in the '80s are now some of their biggest financial drains.

"We conclude that it imposes costs and impedes spectral efficiency," states the FCC docket.

"We continue to consider the existence of a nationwide, compatible service to be a major goal for the cellular service. However, given the current competitive state of mobile telephony, we conclude that consumers will continue to have the ability to roam outside of their home markets even in the absence of the analog requirement."

Alarms Sound

Today's digital cell phones use higher frequencies which mean they have a shorter range. But the upside is that, coupled with digital technology, the more modern service can handle a larger volume of simultaneous calls with improved voice quality.

It also means consumers can transfer data, such as e-mails, text messages and videos. Almost every cell phone customer in the U.S. uses the newer digital service.

Jeff Nelson, spokesman for Verizon Wireless said he didn't know exactly how many people still rely on AMPS but insisted, "It's a very, very small percentage of customers."

Many alarm systems in the U.S. send warning messages to fire, police and hospital emergency workers using AMPS. Although the FCC released the docket in 2002, the National Burglar & Fire Alarm Association (NBFAA) claims their member companies need more time to upgrade their existing AMPS systems to digital alarms.

"We are talking to the FCC in the hopes of getting an extension," NBFAA Executive Director Merlin Guilbeau said in a prepared statement.

But with 16 months until the sunset of this technology, there is no plan for an extension, said FCC spokeswoman Chelsea Fallon.

ADT, the country's largest security system company is sending a formal request for an extension to the AMPS sunset to the FCC tomorrow.

"While we understand the need to migrate to digital services, doing so in the deadline timeframe is unrealistic given the lack of adequate equipment supply from manufacturers. This limits the ability of security companies to begin the aggressive scheduling of swap-out installations required to meet the 2008 deadline." Phillip McVey, vice president, Business Operations, ADT North America, said in a prepared statement.

Although a handful of companies already offer digital alarm service, on a nationwide scale, it might not work, ADT claimed. The FCC had no comment on ADT's letter.

"While mobile phones are offered to consumers in multiple digital technologies, the manufacturers of alarm equipment offer only GSM products," according to the ADT statement. "There are areas of the United States where GSM service will not function and products on other digital technologies, such as CDMA, are required but not yet available."

However, a quick look at a large GSM map such as Cingular's coverage map versus that of Verizon's (CDMA), will show that few places have that have GSM, do not have CDMA.

Another concern is that there is not enough equipment or manpower to upgrade many of these systems by 2008.

"There are three-quarters of a million to a million systems that use this system (AMPS)," NBFAA president George Gunmann said.

With Congress in recess, it may be a while before any decision is made, Gunman said.

"We have been telling our members that they need to be prepared to have all their alarms be digital very soon," said NBFAA spokesman Jason Smith.

Hear Me Now?

Other industries have better adapted to the five-year sunset. The higher frequency broadcast of modern cell phones tends to interfere with hearing aids while AMPS does not.

"Some people describe it as a Bumble Bee buzzing in their ear," said Pam Mason, spokeswoman for the American Speech-Language-Hearing Association. "Others say it sounds like a motor boat."

According to VerizonWireless.com, "a hearing aid operates by using a microphone to pick up sound waves in the air and converts the sound waves to electrical signals. The signals are then amplified as needed and converted back to audible sounds for the user to hear. The hearing aid's microphone, however, does not always work well in conjunction with audio devices like headsets and telephone handsets. The acoustic connection made between the audio device and the hearing aid is poor and creates distortions in the sound. In addition, the surrounding noise in the area of the user is often picked up by the hearing aid and interferes with the desired audio."

Mason said there have been great strides to fix this problem. The American National Standards Institute (ANSI) has worked with both manufacturers of cell phones and hearing aids to offer a solution for those customers with hearing deficiencies.

Cell phones and hearing aids now label their "M rating." The M rating tells how well that particular device will cancel interference while using a modern cell phone. For both cell phones and hearing aids, customers should make sure they both have an M rating of at least three.

Mason said customers should make sure the combined M rating of the two products is at least six. For example, she said if a customer has a hearing aid with an M rating of two, he or she should buy a cell phone with an M rating of at least four.

Many of the cell phones listed on Verizon's website have an M rating of three or four. Regardless of the listed M rating, Mason said customers should go to the store to try out the cell phone before buying it.

Mason said thanks to the M rating system, the termination of AMPS should not affect consumers with hearing aids.

Remote Areas

The final group that might be affected by this change is consumers in very remote areas. Since AMPS has significantly more range, areas such as the entire Gulf of Mexico and the Appalachian Mountains can have service.

However, industry professionals don't believe that this voluntary sunset will dramatically change service for customers in rural regions.

According to the FCC docket, "With the introduction of digital services by PCS (Personal Communications Service) providers, cellular licensees are likely to find it competitively necessary to install or expand their digital network, regardless of whether or not the analog requirement is retained."

Most of the regional rural carriers offer both AMPS and digital service already, Tim Raven, executive director of the Rural Cellular Association, said.

"It is inevitable that the rural areas will become all-digital," Raven said. "The problem is that some customers like their old analog phones and our companies want to cater to their needs."

Although it would seem to be financially smart for the large cell phone companies to disconnect the AMPS service as soon as possible, Nelson, speaking for Verizon Wireless, said he does not know when or if Verizon plans to shut down AMPS.

"I know we have not notified customers yet," he said.

Nelson said it's possible the company will give customers in rural areas cell phones that work with both analog and digital signals and wean them off the AMPS service gradually.

In short, this has been a slow, five-year sunset for an aging technology and although in some areas it may still exist for years to come, for most consumers that ringing sound will be coming from their shiny new digital cell phones.

Alarm Companies Alarmed Over Cell Phone Transition...

Verizon Joins BellSouth in Retreat From Unexplained New DSL Fee


Like BellSouth, Verizon has retreated from its plan to impose a surcharge for DSL service after the normally compliant Federal Communications Commission (FCC) sharply questioned the fee.

"We have listened to our customers," said Verizon executive Bob Ingalls, perhaps momentarily overlooking the eight-page letter the FCC sent to Verizon and BellSouth.

Ingalls said a small number of customers who have already been billed for the surcharge will receive a credit.

Last year, the federal government changed a rule that had required DSL subscribers to pay into a federal fund that subsidizes phone service in rural and low-income areas, intending to shave a dollar or two off subscribers' broadband bills.

Instead, just as the federal fee expired, Verizon and BellSouth tacked on a new "supplier surcharge" fee -- Verizon's euphemism -- ranging from $1.20 to $2.70 per month, almost exactly the same as the eliminated fee. BellSouth called its extra take-home pay a "regulatory cost recovery fee."

Embarrassed and angered by the blatant consumer gouging as the fall election nears, the FCC sent an eight-page "letter of inquiry" to both BellSouth and Verizon asking whether the new fees complied with the FCC's "Truth-In-Billing" requirements for clearly explained and understandable customer charges.

After chewing on the question for a few days, Verizon and BellSouth apparently couldn't come up with a credible answer.

"The old-line telco tubbies talk a lot about listening to their customers but they are so accustomed to having their way with Congress and the FCC that they clumsily, stupidly and ineptly embarass their patrons by imposing an outrageous and indefensible fee as the party in power wrings its hands over voter anger at the current Congress' war on consumers," said one longtime D.C. public affairs practitioner.

Verizon Joins BellSouth in Retreat From Unexplained New DSL Fee...

PayPal Offers Advice On Spotting A Spoof

"Spoof" emails are spam messages that appear to be from a well known company, such as PayPal. Usually the email warns the recipient that fraudulent activity has been detected in their account and instructs them to click on a link and enter their personal account information.

PayPal is fighting back, with instructions on its Web site for spotting these phony messages, which may be professionally designed to look quite real. The first thing to look for, the company says, is a generic greeting. These bogus messages usually begin with "Dear PayPal Member" instead of your name.

Next, look for a false sense of urgency in the message. Most spoof emails try to deceive you with the threat that your account is in jeopardy if you don't update it ASAP.

Finally, a spoofed email will contain a phony link made to look like it's sending you to the company's mail Web site. But in reality, it's sending you to a dummy site where your personal data can be stolen.

"Move your mouse over the link and look at the URL in your browser or email status bar. If the link looks suspicious, don't click on it. And be aware that a fake link may even have the word "PayPal" in it," the company said.

PayPal also says you can also identify fake emails by the information they ask you to provide. PayPal says it will never ask for the following information in emails:
• Credit and debit card numbers
• Bank account numbers
• Driver's License numbers
• Email addresses
• Passwords
• Your full name

The PayPal Website also has an email link where recipients of these phony messages can report them, so the company can take action against them.

PayPal Offers Advice On Spotting A Spoof...

Cable Companies Outscore Phone Companies in Customer Satisfaction

Cable companies that are aggressively enticing telephone customers with attractively priced service bundles are also outperforming traditional phone companies in satisfying customers, according to the J.D. Power and Associates 2006 Residential All-Distance Telephone Customer Satisfaction Study.

The study, which measures customer satisfaction with both local and long-distance telephone service, finds that cable companies rank highest in customer satisfaction in five of six U.S. regions.

In 2005, just one cable company -- Cox Communications -- led any of the regional customer satisfaction rankings. It now ranks highest in three regions, while newcomers Bright House Networks and Time Warner Cable each rank highest in one region. Verizon is the sole traditional phone company ranking highest in a region.

"While telephone service offered by cable companies is relatively new to the market, large numbers of customers are being lured to switch with enticing cost savings and highly attractive bundles of video, voice and data service," said Steve Kirkeby, executive director of telecommunications and technology research at J.D. Power and Associates.

"The importance of pricing as a reason to bundle service with a single provider has increased dramatically this year, no doubt a result of significant price competition introduced when cable companies began offering local and long distance telephone service to new markets," he added.

Although price competition plays a significant role in the industry today, customer-reported spending on local and long distance service has increased 3.4 percent from 2005.

On average, customers report paying $52.40 per month for local and long distance service -- up from $50.70 in 2005. Customers of cable providers report paying an average of just $42.40 per month, while reported spending with traditional telephone companies averages $53.59.

"We're seeing that for the first time customers are most often contacting their all-distance carrier about rates, pricing and features while questions about billing have dropped dramatically, spotlighting how intense competition and simplified rates are changing customer focus," said Kirkeby. "However, the study findings consistently indicate that price alone will not satisfy or retain customers."

The study finds customer satisfaction in the telephone industry continues to decline. Overall, satisfaction index scores have dropped from 692 (on a 1,000-point scale) in 2005 to 670 in 2006. Satisfaction has fallen in all six factor areas measured in the study, dropping most significantly in the areas of customer service, image and billing. The other areas measured are performance and reliability, cost of service, and offerings and promotions.

"Although cable companies entering new markets average satisfaction scores that are more than 30 index points higher than the industry as a whole, and despite nearly doubling their share to just under 10 percent of the telephone service market, cable companies are not yet a large enough force to propel overall satisfaction higher," said Kirkeby.

"Overall satisfaction drops as the industry continues to struggle with consumer uncertainty caused by several large, well-publicized mergers and divestitures among the traditional phone companies. Changes such as these always take their toll on customer satisfaction," he noted.

The study results by region are:

• Northeast Region: Cox Communications ranks highest, receiving the highest ratings in the region in performance and reliability, billing, image, customer service, and offering and promotions.

• Mid-Atlantic Region: Verizon ranks highest, outperforming other carriers in billing, image, cost of service, and offerings and promotions.

• Southeast Region: Bright House Networks ranks highest, with top ratings in the region in customer service, billing and image.

• North Central Region: Time Warner Cable ranks highest, with the highest ratings in the billing and cost of service factors.

• Southwest Region: Cox Communications ranks highest, with particularly high ratings in customer service, billing and image.

• West Region: Cox Communications ranks highest in the region for a fourth consecutive year, receiving top ratings in all six factors.

Cable Companies Outscore Phone Companies in Customer Satisfaction...

Text Messaging Charges Surprise Cell Phone Users

Cell phone customers are frequently shocked when their first bill arrives and it is tens, sometime hundreds, of dollars more than expected.

It is frequently parents who include their Internet and text messaging-addicted children in their plans, who suffer the most.

ConsumerAffairs.com examined all the fine print, pored over contracts, called the companies and compared the rates of four major U.S. cell phone carriers: Cingular, Sprint/Nextel, Verizon and T-Mobile (see table below).

Don't Want It? You Got It

The upshot: Just because you're not buying it doesn't mean you won't pay for it.

The standard cell phone plan consists of a few hundred "anytime minutes" and free night and weekend minutes. This standard plan usually runs between $30 and $60 per month and does not include text messaging or Internet packages which together will normally run about another $30 per month.

Chances are the salesperson won't push you into buying those services because whether you asked for them or not, you already have them.

All cell phone companies include these services and then charge per-use fees which may be impossible to avoid.

For example, if you decide not to get a text messaging package, no matter what the carrier, you will still be charged 10 cents for each text message. That includes messages sent and received -- even if you choose not to read the messages sent to you.

This is particularly bad for T-Mobile customers. T-Mobile frequently sends "company alert" text messages to all its customers. And unlike most other services, T-Mobile will refuse to cancel text messaging on your account.

"T-Mobile keeps billing me for incoming text messages," William of Mt. Morris, Mich. wrote. "I have no control over these and shouldn't be billed for them. One message was from a third party selling something. Another was from T-Mobile. I called, but they won't take the charges off. Furthermore, they refused to block text messaging on my account."

The great majority of ConsumerAffairs.com complaints are from parents whose children decided to use text messaging or scour the Internet from their cell phone.

"We purchased a plan for our daughter who was entering college," Charlene of Greenville, Miss. wrote. "When the first bill came it was for over $600. The text messaging option is the main means of communication for my daughter. We had been charged for each incoming and outgoing text message -- 10 cents per message."

Belkis of New York is a single mother with two children. In April her children browsed the Internet and downloaded a ringtone with her cell phone. Her bill was $80 higher than normal that month.

Where'd It Say That?

Many of the explanations of these charges are buried somewhere in a stack of fine-print pages your carrier will dump on you when you sign your contract.

When you sign up with Verizon, they will hand you a fat folder filled with brochures that hardly go out of their way to warn you about your potentially high extra charges.

Verizon includes a whole brochure about their "Get it NOW" Internet service available on all their phones. However, nowhere in that brochure, in any of the documents in the fat folder, on the contract, or on Verizon's website does it say how much this service costs for customers who do not pay a monthly access fee.

It wasn't until ConsumerAffairs.com called Verizon's customer service that we discovered they charge $.005 per kilobyte.

It's not poring over the fine print that Verizon's, T-Mobile's and Sprint's customers discover the 10-cents-per-text fee and the varying internet charges -- it's when they open the bill.

Cingular on the other hand, makes it clear in large print in their terms and services brochure.

Cheapest Isn't Always Best

At 10 cents per text message or up to 2 cents per kilobyte, charges can mount exponentially and it often is far cheaper for customers to buy the Internet or text messaging packages with their phone plan if they plan to use any of those per-use services. This is especially true with text messaging since you sometimes will receive unsolicited messages.

Provider

Text Messaging

Per-Minute Fees

Internet Data

Cingular

.10

.20-.45

.01/kb

Sprint/Nextel

.10

.45

.02/kb

T-mobile

.10

.30-.40

.20/minute

Verizon

.10

.20-.45

.005/kb

Another factor is the number of anytime minutes in your plan. For each minute you use over your allotted plan, your carrier will charge you a per-minute rate. The cheaper your plan, the higher the rate.

For example, Cingular's 450 minute/$40 plan will charge you $.45 for each minute you go over your allotted 450. Cingular's 6000 minute, $200 plan charges $.20.

Let's continue with Cingular as the example. If a single customer with the basic plan sends and receives 50 text messages ($5), browses 5 megabytes worth of internet ($50) and talks 100 minutes over their 450 ($45), this customer will have a total bill of $140.

If this same individual were to upgrade to the next plan, get the minimal text messaging option and pre-order 5 megabytes worth of internet usage, the same $140 bill described above would be cut nearly in half to $73.

Text Messaging Charges Surprise Cell Phone Users...

AT&T Plans to Kill Cingular Name

First Paris Bennett, now this. Reborn telco giant AT&T plans to ditch the Cingular brand name and replace it with something it finds more "elegant." And what might that be? Why, AT&T Wireless, of course.

Cingular's corporate parents, AT&T (nee SBC) and BellSouth, have spent an estimated $4 billion to turn it into one of the best-known names in the country and, through sponsorship of "American Idol" and similar shows, given it strong appeal to the younger set.

AT&T Wireless, on the other hand, may sound vaguely familiar to consumers of a certain age. That's because there's already been an AT&T Wireless. The name changes in the telecom industry the last few decades have been so constant and so confusing, it's like trying to keep the players straight at a Jim Smith convention, so we won't repeat it all here.

But marketing professionals are aghast at the notion that AT&T would throw its red-hot Cingular brand into the dustbin in favor of AT&T, which Advertising Age said conjures up little more than "images of the rotary dial."

(Note to younger readers: Once upon a time, telephones were attached to the wall with a wire. There was a circular dial, sort of like an alloy wheel, that the user had to physically spin with his or her finger. This was called "dialing.")

AT&T says what it would be expected to say -- that the name change will "eliminate customer confusion and make a much more elegant solution."

What AT&T is trying to say is that it is still transfixed with the notion of "bundling," which it has been talking about since at least the 1980s. Bundling basically refers to selling the consumer everything you can think of -- landline, wireless, cable, broadband -- on a single account.

The concept has been popular with traditional telephone executives for at least a generation but it has never quite caught on with consumers, partly because no one yet offers an entire range of services under one brand but also because consumers are always looking for the next new thing, perferably with a singularly appealing new name, like Cingular.

Whether or not bundling matters, marketing experts interviewed by Advertising Age had little good to say about renaming Cingular.

Jonathan Asher, president of Dragon Rouge USA, a branding and design consultancy called AT&T "my father's brand of telephony."

Its only good attributes are "incredible recognition, incredible heritage and somewhat reliable." Its not-so-good ones -- "stodgy, old fashioned, big, heavy and dated."

Cingular's hip image just may be obliterated when it gets pulled into AT&T's logo, which many advertising types refer to as the "death star." Check back with us a few billion dollars from now for the answer.

AT&T says what it would be expected to say -- that the name change will "eliminate customer confusion and make a much more elegant solution." ...

Vonage 911 Caller Put On Hold While House Burns Down

A Minnesota homeowner charges VoIP provider Vonageput him on hold when he called 911 to report his house was on fire. The home was a total loss.

Loren Velthamp of Chanhassen, Minnesota, said he grabbed the phone and called 911 when he realized a fire has started in his home. "I called 911 using Vonage broadband and they put us on hold," Velthamp told KSTP-TV in Minneapolis. Unbelievable your house is burning down, and you're put on hold by Vonage.

Fire department officials say that by the time fire crews arrived on the scene, the fire had become a five-alarm blaze. No one was injured, but they described the dwelling as a total loss.

The incident has raised anew the question of how VoIP services, which provide telephone services over the Internet, interface with community 911 emergency services systems.

Because the calls aren't routed through the land-line telephone system's infrastructure, there has to be way to transfer into the 911 system that serves the nation's 6,200 emergency call centers. That transfer has posed numerous stumbling blocks so far, both technical and political.

As it now stands, VoIP 911 calls can be unreliable. Calls made after normal business house may be misdirected to emergency-services administrative offices, where the caller gets a recorded message. Even when the VoIP 911 call does make it to an EMS dispatcher, it sometimes lacks the information traditional phone services provide, like the caller's address and telephone number.

There could well be repercussions from the Minnesota incident at the Federal Communications Commission. Last year the FCC gave VoIP providers an ultimatum to institute by September 2005 the same kind of 911 access provided to people using landlines or cell phones.

Vonage 911 Caller Put On Hold While House Burns Down...

Study Warns Cell Phones Could Cause Airliner Crash

Lifting the current ban on use of cell phones aboard airliners could pose the risk of a major accident, according to a new engineering study.

The study by Carnegie Mellon University researchers has found that cell phones and other portable electronic devices, like laptops and game-playing devices, can pose dangers to the normal operation of critical electronics on airplanes.

The study will be featured in an article appearing in the March issue of IEEE Spectrum.

"We found that the risk posed by these portable devices is higher than previously believed," said Bill Strauss, who recently completed his Ph.D. at Carnegie Mellon.

"These devices can disrupt normal operation of key cockpit instruments, especially Global Positioning System (GPS) receivers, which are increasingly vital for safe landings." Strauss is an expert in aircraft electromagnetic compatibility at the Naval Air Warfare Center in Patuxent River, Md.

With support from the Federal Aviation Administration, three major airlines and the Transportation Security Agency, researchers crisscrossed the northeast United States on commercial flights, monitoring radio emissions from passenger use of cell phones and other electronic devices.

They tracked these radio emissions via a broadband antenna attached to a compact portable spectrum analyzer that fit into an innocuous carry-on bag.

"A laptop computer controlled the system and logged the data," said researcher Granger Morgan. "While we looked primarily at wireless phones, we also discovered that emissions from other portable electronic devices were problematic."

The researchers found that on average one to four cell phone calls are typically made from every commercial flight in the northeast United States. Some of these calls are made during critical flight stages such as climb-out, or on final approach. This could cause accidents, the investigators report.

Both Strauss and Morgan, along with Carnegie Mellon researchers Jay Apt and Dan Stancil, recommend that the Federal Communications Commission (FCC) and the FAA begin to coordinate electronic emission standards.

At the moment, there is no formal coordination between the two federal agencies. The researchers also recommend routine monitoring of on-board radio emissions by flight data recorders and deploying specially designed tools for flight crews to monitor passenger use of electronic devices during final approach.

While the FCC recently suggested that it might be appropriate to allow passengers to use cell phones and other electronic devices on airplanes, Morgan disagrees.

"We feel that passenger use of portable electronic devices on aircraft should continue to be limited for the safety of all concerned," Morgan said.

Study Warns Cell Phones Could Cause Airliner Crash...

Study: Cell Phones Reduce Hospital Errors

Using cell phones in hospitals reduces the error rate in medical care because of more timely communication and rarely causes electronic magnetic interference, according to Yale School of Medicine researchers.

The study published in February's Anesthesia & Analgesia is believed to be the first to investigate whether use of cell phones by medical personnel has a beneficial impact on safety. It was based on 4,018 responses from attendees at the 2003 meeting of the American Society of Anesthesiologists.

Of those anesthesiologists who participated in the survey, 65 percent reported using pagers as their primary mode of communications and 17 percent said they used cell phones. Forty percent of respondents who use pagers reported delays in communications, compared to 31 percent of cellular telephone users.

The senior author, Keith Ruskin, M.D., associate professor in the Departments of Anesthesiology and Neurosurgery, said the electronic interference from cell phones was a problem in the past because of older telemetry equipment and analog cell phones.

"The new digital cell phones use much higher power and operate at a different frequency," Ruskin said. "The small risks of electromagnetic interference between mobile telephones and medical devices should be weighed against the potential benefits of improved communication."

He said the reported 2.4 percent prevalence of electronic interference with life support devices such as ventilators, intravenous infusion pumps, and monitoring equipment is much lower than the 14.9 percent risk of observed medical error or injury due to a delay in communication.

Study: Cell Phones Reduce Hospital Errors...

Cingular Patents the Emoticon :(

Cingular Wireless has won a patent on the concept of using "emoticons" on mobile phones. The patent applies not only to graphic versions of the ubiquitous smiley/mad face but also to simple text versions. :)

Cingular says the aim of the patent is to enable the displaying of graphics on its subscribers' handsets, the patent would also prohibit sending simple text versions via a dedicated or programmable key.

The system may also support the import of emoticons and custom emoticons to one or more applications running on the mobile device, Cellular News reported. For example, in some embodiments, users may visit an out-of-band service (e.g., web page) to compose or upload custom emoticons that would then become available on the wireless device's palette.

The patent may be seen as bad news by devotees of the inane faces. On the other hand, if it restricts the spread of the moon-shaped faces, it's likely to be wildly popular in some quarters.

Don't believe it? :| Check it out. The patent number is US2006015812.

Cingular Patents the Emoticon :(...

California to Try Again With Telecommunications Bill of Rights

The California Public Utilities Commission (CPUC) will vote in January on a proposal to create a "Telecommunications Consumer Fraud Unit," part of the latest version of the state's controversial Consumer Bill of Rights.

Also in the new Bill of Rights is a proposal for a consumer-education campaign as well as a proposal to extend the CPUC's toll-free consumer hotline.

"With traditional regulation it takes years to bring a case against a company that is ripping off consumers -- that won't work in today's fast-paced telecom world," said CPUC Commissioner Susan Kennedy. "This proposal gives the CPUC the tools to protect consumers against fraud in real-time, and provides consumers with the tools they need to protect themselves."

Kennedy, regarded as a pro-business Democrat, drafted the measure with CPUC President Michael Peevey but she won't be around for the January vote. She's leaving the CPUC to become chief of staff to Gov. Arnold Schwarzenegger, a Republican who opposes additional wireless regulations.

Peevey and Kennedy both voted to suspend the original Telecommunications Consumer Bill of Rights in January 2005 after cell phone companies spent hundreds of thousands of dollars on lobbying efforts.

The latest version isn't being very well received either. Verizon Wireless was the first to issue a broadside against it.

"Verizon Wireless believes that state regulation aimed at the highly competitive, high-tech wireless industry, such as the new burdensome rules, is unnecessary and inappropriate," said Michael Bagley, Verizon Wireless West area executive vice president of public policy.

"California already boasts the toughest consumer-protection laws in the nation, and those laws apply to all competitive industries, including the wireless industry. Adding an extra layer of regulation at the CPUC will hurt and cost consumers," Bagley said.

The new rule's prospects are murky. Passage will require a majority of the five-member CPUC. With Kennedy gone, and possibly not replaced by the time the vote takes place, a majority may be hard to come by.

The new guidelines cover wireless and wireline carrier disclosure, marketing, service initiation and changes, billing and other business practices. The guidelines were crafted through compromise by CPUC Commissioner Geoffrey Brown (D) and were supported by consumer proponents, disability rights advocates and others.

Besides throwing money around in Sacramento, the wireless industry is heavily lobbying Congress and the Federal Communications Commission to further pre-empt state regulation of wireless phone operators. The wireless industry would like to see Congress do away with any remaining state rules affecting wireless and broadband services.

California to Try Again With Telecommunications Bill of Rights...

Cingular Rolls Out High-Speed Wireless, Verizon Promises Live Video

Santa is coming early to cell phone users, with a bagful of new goodies, each pricier than the next.

Cingular Wireless is launching a high-speed Internet service similar to those already offered by Verizon Wireless and Sprint Nextel. BroadbandConnect is being introduced in 16 U.S. cities and will be expanded to 100 metropolitan areas by the end of 2007.

The new service offers connection speeds similar to DSL and costs $60 per month, roughly the same price charged by Verizon and Sprint. German-owned T-Mobile does not have the technology on its network and has not announced any plans to add it.

Verizon Wireless, meanwhile, says its cell phone customers will soon be able to use their phones to watch live TV. The company has signed a deal with Qualcomm to use its new network, currently in development. Verizon Wireless users can already use their phones to watch short video clips but not live broadcasts.

The two companies say they expect to launch the new service in approximately half of the markets already covered by Verizon Wireless broadband network. They say they hope to make the service commercially available in 2006.

Cingular also says it plans to launch a push-to-talk phone service which integrates walkie-talkie and cellular technology across its network. It's intended to compete with Sprint Nextel's push-to-talk service available under the Nextel brand of phones. It's likely that, like Sprint, Cingular will initially target business customers.

Cingular also said it will begin selling a new line of so-called "smart phones" early next year that offer faster access to the Internet than Cingular's existing cellphones. Other hand-held devices that will specialize in music and video will also be available next year.

The new offerings from the cell phone companies are intended largely as a response to the growing popularity of Wi-Fi technology, which provides high-speed access from "hot spots," usually within a few hundred feet of the transmitter.

Google has announced plans to build a free Wi-Fi network throughout the San Francisco area and storm-battered New Orleans hopes to build a public Wi-Fi network to lure businesses and residents back to the Crescent City. Philadelphia was considering a similar plan.

Telephone companies have vehemently opposed municipal Wi-Fi networks, saying they encroach on its business and they are expected to file legal challenges against New Orleans and Philadelphia if the cities move ahead.

"With our 3G service, almost any spot in a city is a hot spot," said Ralph de la Vega, chief operating officer for Cingular Wireless.

But in fact, the service is spotty at best. A continuing ConsumerAffairs.com test of Verizon Wireless' service finds it improving in the Washington, D.C. area, but still too unpredictable for everyday use.

At $60 per month and with laptop plug-in cards costing more than $200 each, the wireless broadband services so far are attractive mostly to business customers.

Cingular's new service is available in cities including Boston, Chicago, Houston, Phoenix and Washington, D.C. The company says it will extend the network to cover most major cities next year, and service 100 metropolitan areas by the end of 2007.

Cingular claims its service won't drop connections when customers leave coverage areas. Instead, its service will transfer such connections to its slower nationwide network, they say.

Cingular Rolls Out High-Speed Wireless, Verizon Promises Live Video...

New Orleans Phones, Cell Networks Still Down

New Orleans remains shut off from the outside world, with virtually no phone service and repair crews not yet allowed to enter the flooded, battered city.

The various telephone companies have been unable to estimate when service might resume, since they have not yet been able to physically inspect the damage to their equipment.

The landline network has been out in most of the New Orleans area since the storm hit and most cell towers failed during the first few hours. Emergency generators kept some facilities up but they soon ran out of fuel or became water-logged.

The situation has not been much better for police, fire and other emergency workers. Although most of their base stations remained operational, with virtually no electricity in the city, workers have not been able to recharge the batteries on their hand-held units, rendering them useless.

It's not only New Orleans that's affected. Long-distance service for much of the Gulf Coast and Florida Panhandle is routed through giant switches in New Orleans. Many of those switches shut down because of water damage, interrupting calls that would normally pass through them.

Cingular Wireless said its network is operating on a "limited basis" in the New Orleans area, although service has been almost fully restored in Baton Rouge and parts of Alabama. Cingular is rolling out its own mobile cell sites, as well as bringing in back-up generators and additional fuel, a spokesman said.

Sprint said it has 100 engineers on site in Baton Rouge, where it is concentrating its recovery efforts. The company is preparing to roll out mobile cell sites in an effort to boost cellular capacity in areas where the wireless infrastructure is knocked out.

Few Options

Hurricane Katrina demonstrates how few communications options most consumers have in the wake of a major disaster.

After a major storm, earthquake or fire, the landline network is often knocked out of service by damage to wires and cables. Extreme flooding can destroy network switching equipment and knock out emergency generators.

The cell phone network is even more vulnerable, as each tower must have electricity to operate. Most towers have very little back-up capacity and generators or batteries often fail after just a few hours.

Even when towers remain active, citizens can't recharge their battery-powered phones without electricity.

There are some options, such as satellite phones. But they are expensive, usually over $1,000, and are also limited by the battery life of the phone.

As many New Orleans residents have learned, cellular text messaging can be a last-ditch means of communicating; it requires less power than talking and does not require a constant connection. Also, those able to find a working Internet connection have been able to communicate via email and bulletin boards.

Push-to-Talk

Some users of Sprint Nextel push-to-talk phones were surprised to find they could get through to others on their push-to-talk list, even in areas where the network was down. That's because the push-to-talk phones connect directly to each other, bypassing the network, although they have a range of just a few miles and battery life is still a problem.

New Orleans remains shut off from the outside world, with virtually no phone service and repair crews not yet allowed to enter the flooded, battered city. ...

Sprint, Nextel Complete Merger

Sprint and Nextel have officially completed their $35 billion merger, although subscribers won't see the effects for at least the next few weeks. Sometime next month, subscribers will be able to switch from one provider to the other without paying cancellation fees. 


Also, customers whose plans include free in-network calling will be able to call free to both Sprint and Nextel customers sometime next month, the company said.

The merger solidifies Sprint Nextel's hold on the #3 position among U.S. wireless carriers with 44 million subscribers. It trails No. 2 Verizon Wireless, with 45.5 million subscribers, and No. 1 Cingular Wireless, with more than 50 million subscribers.

The merger creates a company with 80,000 employees nationwide. In a blow to the Kansas City area, where Sprint has been located since its founding, the new entity's headquarters will be in Reston, Va., where Nextel got its start. The new company will maintain its operations center in suburban Overland Park, Kansas.

Sprint Nextel will concentrate on the wireless business, selling off the local telephone businesses Sprint operates in 18 states. The local telephone business has been steadily losing subscribers while Sprint and Nextel have each grown their wireless businesses nearly 10 percent in the eight months since the merger was announced.

Sprint Nextel's combined networks cover approximately 268 million people.

Sprint was founded in 1899 by Cleyson Brown under the Brown Telephone Company name in the small town of Abilene, Kansas. It was a landline telephone company that operated as a competitor to the Bell System. In the mid 20th century, Brown changed its name to United Utilities. That company changed its name to United Telecommunications in 1972, as it began to offer a more diversified product range.

In 1986, the company launched its long distance services under the Sprint brand name. As more people became familiar with the Sprint name, the company changed its from United to Sprint Corporation in 1992.

In 1995, the company began to offer wireless service under the Sprint PCS brand.

NEXTEL was founded as FleetCall in 1987, promoting its "push-to-talk" feature. It changed its name to NEXTEL Communications in 1993.

Sprint, Nextel Complete Merger...

FCC Clears Sprint, Nextel Merger

The Federal Communications Commission has unanimously approved the $36 billion union between wireless phone providers Sprint and Nextel. With the Justice Departments failure to find any anti-trust issues to pursue, the FCC action was the final hurdle for the deal, which solidifies Sprints position as the U.S. third largest wireless company.

The FCC said the merger would lead to better service and a faster rollout of advanced services. In fact, the only condition the commissioners placed on their approval was Sprints commitment to begin offering service in the 2.5 (GHz) band by 2009.

The new company, which will be called Sprint Nextel, also intends to spin off to its shareholders Sprint's local telecommunications business following the merger.

Executives at both Sprint and Nextel said the merger combination will allow Sprint Nextel to:

• Offer digital wireless service in all 50 states, Puerto Rico and the U.S. Virgin Islands. Sprint Nextel and its affiliates and partners cover a total domestic population of 262 million.
• Provide consumers more choice through investments in wireless multi-media, web browsing, messaging, gaming and music on the go.
• Provide integrated wireless and IP-based wire line solutions to business.
• Improve customer service and sales performance through joint capabilities.
• Invest to deploy next-generation wireless data services.
• Improve wireless network quality and coverage.

FCC Clears Sprint, Nextel Merger...

Site Offers Cell Phone Contract Swapping


A new Web site claims to enable consumers to swap their cell phone contracts with others. Consumers now face hefty termination fees if they want to terminate their contract early, even if it's because service is inadequate in their area.

Consumer advocates urged caution, however, and said that carriers might not recognize the transfers.

Most cellular service providers, incluidng such major carriers as Cingular, Verizon, T-mobile and Nextel, require a 1-2 year cellular service agreement to activate their service. Cellular customers wanting to get out of their contract are now "stuck" in most cases, although a few states allow early termination in certain circumstances.

Celltradeusa.com says it provides a solution to this dilemma. It hopes to build a community for the 180 million current cell phone users in the US and Canada seeking more choice and flexibility. The service connects people that want to get out of their contract and matches them with deal-seeking customers that want to pick up a contract.

Celltradeusa.com does this by allowing its "Get Out" members to register for free, and provides an incentive system based on free phones, cash, and other "creative" barter arrangements to entice other people to take over contracts.

"If you've ever spoken with someone stuck in a cellular service contract with inadequate service, you quickly realize the value of the Get Out option. We also appeal to the deal seekers of the cellular world with the 'Get In option.' And the service provider gets the new satisfied customer, it's really a win-win for everybody," says Eric Wurtenberg, co-founder of Celltradeusa.com.

"It's a clever idea but consumers should be aware that their cell phone carrier may not recognize the swap," said ConsumerAffairs.com President James R. Hood. "If you read your cell phone contract, you will most likely find a clause that prohibits you from making any 'transfers and assigns.' Thus, your carrier would not be obligated to recognize a contract swap."

"Even if your carrier agrees to allow the swap, it will most likely come after you if the new customer falls behind in his or her payments," Hood warned.

The company responds:

Thank you for bringing awareness to your readers about our celltradeusa.com service. However, we would like to address a couple of issues that were in your consumer report.

1. Celltradeusa.com is a listings site that matches cell phone consumers together through our incentive based system. After we connect the consumer, the entire transfer process is conducted through the respective provider. There will be no delinquency issues because the provider will qualify the person transferring the contract responsibility before any trade is authorized. The Get Out person will be fully removed from the contract obligation after the trade (with the provider) is completed.

2. Transfer of responsibility is something that ALL the providers already offer to their customers. Celltradeusa.com expands on what the providers offer to their customers by offering a listings service that allows users to find matches they would have had a hard time finding without our service.

3. The actual process is not mandatory for ""swapping" or as we call "clean" swaps. The Get Out customer first finds someone who wants to take over the contract. After the provider qualifies that person, the Get In customer assumes the contract responsibility, and the Get Out customer does not have to take over anyone else's contract for the service to work. They can walk away to buy new, or if they'd like they can go through the process of becoming a Get In customer. Cell swapping is a possibility, but the majority of our transactions are not swaps. And ALL transfers are conducted through the respective provider. We rely on the provider to conduct the transfers that they already offer to their customers.

I hope this clears up some issues surrounding our service. I think our press release is party to blame and I will ensure that the release will expound the details more clearly. Thank you for your time and consideration.

Best Regards,
Eric Wurtenberg
Co-founder
Celltradeusa.com

A new Web site claims to enable consumers to swap their cell phone contracts with others. Consumers now face hefty termination fees if they want to termina...

T-Mobile Ranks Highest in Wireless Customer Care Performance


For the second time in as many years, T-Mobile ranked highest among the six largest wireless service providers in creating a positive experience among customers who contact their providers for service or assistance.

The J.D. Power and Associates 2005 Wireless Customer Care Performance Study says that with an index score of 108, T-Mobile performs particularly well across all factors, especially hold-time duration and problem resolution efficiency.

In addition, T-Mobile customers' average hold times before waiting to speak with a service representative are 34 percent shorter than the industry average (2.27 minutes versus 3.44 minutes). Verizon Wireless, Nextel and ALLTEL also perform at or above the industry average.

The study also found that customer service issues that are handled by a service representative, either over the phone or at a retail store, generate significantly higher customer care ratings than non-human, computer-generated interaction.

Overall, customers who speak with a service representative over the phone average an index score of 109, well above the industry average score of 100. At the retail store level, the index score decreases to 102.

However, those customers contacting their carrier with a problem or inquiring through an automated response system (ARS) rate their experiences significantly lower, with an index score of 85. The index score drops even further (75) for those contacts made over the Internet.

The study shows that one of the main factors contributing to this performance disparity is the quality of response given. A service representative-either over the phone or in person-can answer customer questions and clarify answers given. This kind of flexibility is very limited in both ARS and Internet contact methods.

"As more companies encourage customers to contact Internet and computer-based customer service programs to save operating costs, they run the risk of increasing churn [when a customer switches carriers] as the number of contacts needed to resolve a customer complaint or issue rises," said Kirk Parsons, senior director of wireless services at J.D. Power and Associates.

"Since future churn levels are four times as high among those who rate their wireless carrier below average in customer care, the challenge for wireless providers is to offer an easy and efficient customer care transaction experience."

The study, in its third year, provides a detailed report card of wireless customer care provider performance based on customer experiences in three point-of-contact methods: telephone with a service representative and/or ARS; walk-in at a retail store; and online Internet connection. Within each contact method, processing issues such as problem resolution efficiency and hold-time duration are also measured.

The study also finds several key wireless customer care patterns:

• More than one-half (54%) of wireless users have contacted the customer service department for assistance within the past year, a slight increase from 2004 (52%).
• Among those who contact their carriers, 71 percent do so via telephone and 26 percent through the carriers' retail stores. E-mail/Internet contacts account for only 3 percent.
• The average initial reported hold time on calls to the customer service department is 3.44 minutes, compared to just over 9 minutes before speaking to a representative at a retail store.

The 2005 Wireless Customer Care Performance Study is based on responses from more than 8,600 wireless users who contacted customer care within the past year.



T-Mobile Ranks Highest in Wireless Customer Care Performance...

AT&T Settles Minnesota Suit

The state of Minnesota and AT&T have reached an agreement that resolves the consumer protection lawsuit filed against the long distance carrier.

The agreement settles the state's claim that AT&T erroneously billed some 25,939 Minnesota citizens in 2004 for services never ordered or provided. Under the terms of the settlement, AT&T has refunded or credited Minnesotans who were wrongly billed and has agreed to provide 300-minute long distance calling cards to Minnesotans adversely affected by its erroneous billing and to make a $200,000 payment to the State.

The State's final settlement with AT&T specifically includes the following:

• AT&T agreed to credit and refund all Minnesotans incorrectly assessed calling plan charges and to stop marketing to callers who had been billed in error. Over 25,000 Minnesotans have received credits to date for a total of $308,000. • In addition, the 25,000-plus Minnesotans who received credits are also eligible for a 300-minute calling card. Eligible citizens will receive a letter in the mail detailing how to submit an application for a calling card. The consumer calling card restitution has a retail value of up to $780,000. • AT&T will make a $200,000 payment to the State of Minnesota.

The state's lawsuit was the result of an investigation that revealed that over 25,000 Minnesotans were erroneously billed on their local phone bill for long distance calling plan charges by AT&T beginning in January 2004.

When the company started assessing a $3.95 monthly charge to its long distance "Basic Rate Plan" customers, AT&T billed not only customers on its "Basic Rate Plan" for the $3.95 and other associated fees, but also an additional 25,939 Minnesotans who did not order services from AT&T or who had other AT&T calling plans.

In addition, when those citizens called AT&T to inquire about the charges, rather than helping consumers, AT&T placed Minnesotans on hold for extensive periods of time, transferred them to customer service representatives who tried to "hard sell" AT&T services, and, in some cases, the company told consumers they would had to sign up for an AT&T calling plan to get their money back or charges credited.

A letter is being sent to those Minnesotans who were incorrectly billed by AT&T, directing those citizens how to receive their calling card. Eligible consumers will simply have to check a box on a claim form, fill in the claim number found on the letter, sign and mail the form back to the Minnesota Attorney General's Office by August 15, 2005, or send an email to the Office at phonecard.settlement@state.mn.us. The email must include the customer's name, address, the reason for requesting the calling card, and the claim number on the letter.



The state of Minnesota and AT&T have reached an agreement that resolves the consumer protection lawsuit filed against the long distance carrier....

Jagdmann Obtains First Virginia Do Not Call Law Judgment

A Newport News, Va., firm has been ordered to pay $196,000 for violating the federal Do Not Call law. Virginia Attorney General Judith Jagdmann said it was the first time Virginia has prosecuted a company under the federal statute.

In the lawsuit, former Attorney General Jerry Kilgore, who has since quit to run for governor, charged Real Time International, Inc., with breaking both state and federal telemarketing laws by calling Virginians whose numbers were on the National Do Not Call Registry. The Commonwealth obtained a judgment in federal court that enjoined future violations by the firm and awarded damages for consumers.

"This Office cracked down on a top Virginia target under the Do Not Call law,: said Attorney General Jagdmann. "We have brought its illegal activities to a halt and sent a serious message to telemarketers who flout the law."

The federal Do Not Call law, which went into effect on October 1, 2003, prohibits telemarketers from making telephone solicitation calls to residents who register their numbers on a National Do Not Call Registry maintained by the Federal Trade Commission. Residents may also register cellular phones on the list.

Until recently, Real Time marketed vacation packages to residents of central and southeastern Virginia. Between October 2003 and October 2004, sixty-six Virginians reported Do Not Call violations by the firm, including twenty-two repeat violations. Twenty-seven residents reported that Real Times callers failed to identify themselves, and sixteen reported that the callers made calls after earlier requests not to do so.

Under the lawsuit, the Court awarded injunctive relief to prevent future violations of federal and state telemarketing laws, as well as over $196,000 in monetary damages for willful violations of the law.

Virginians can register their home and cell phone numbers on the National Do Not Call Registry and can file Do Not Call complaints online at www.donotcall.gov or by calling 1-888-382-1222 (TTY 1-866-290-4236) from the number they want to register. Telemarketers have thirty-one days to comply after a resident has registered.

Virginia state law prohibits telemarketers from calling Virginia residents who have registered their telephone numbers on the registry and gives Virginia residents a private right of action if they are on the list and receive such calls.

Jagdmann Obtains First Virginia Do Not Call Law Judgment...

Michigan Warns Vonage About 911

More problems for New Jersey-based Vonage Holdings Corporation, a major provider of Internet-based telephone service. Michigan is accusing the company of misleading consumers about its emergency 911 service.

In a Notice of Intended Action (NIA), Michigan Attorney General Mike Cox told the company it has failed to make it clear that customers do not have access to traditional 911 service. Last month, Texas Attorney General Greg Abbott filed a lawsuit against Vonage citing similar concerns.

"Vonage needs to make sure its customers understand that normal 911 access may not be available to them," Cox said. "Emergency calls made through Vonage's service are often routed through call centers that may not be answered outside of regular business hours."

Although Vonage advertises its "911 dialing" as a benefit, the feature has significant limitations compared to traditional phone service. Customers who use Vonage's service are not directed to operators who dispatch emergency vehicles. If emergency personnel do get the call, they may not be able to identify the caller's phone number or have information displaying the caller's address.

"I don't know about most people, but I don't have the ability to time my emergencies," Cox said. "Vonage has ten days to respond to the NIA, or my office will file a lawsuit seeking injunctive relief and civil penalties."



Michigan Warns Vonage About 911...

Verizon Completes MCI Purchase


Verizon has completed its $8.5 billion purchase of disgraced long-distance carrier MCI, paying much more than it initially intended, thanks to rival Qwest's running up the bidding.

Verizon hopes the MCI brand name -- now roughly the equivalent of mud to most consumers -- will enable it to snag more high-paying business customers, the kind who buy data circuits and network services in addition to long distance. MCI has about 60,000 large corporate customers in 150 countries. With SBC buying AT&T, Verizon feels it needs a leg up in the corporate market.

Upon completion of the deal, short-time MCI Chief Executive Michael Capellas, 51, retires with an exit package valued at $39.2 million.

"Our strategy is to be a customer-focused leader in consumer broadband and video, as well as business and government services, in both the landline and wireless environments," said Verizon Chairman and Chief Executive Ivan Seidenberg in a statement. "We believe that our superior networks are the basis for innovation and competitive advantage in communications."

Most consumer organizations opposed both the MCI and AT&T acquisitions, saying there's already been too much consolidation, leading to less and less competition and higher calling rates. Others argued that the real competition these days is coming from cell phones and Internet phone service, including that provided by cable TV companies.

MCI was an early innovator in long distance after its disastrous purchase by Worldcom became part of the biggest corporate bankruptcy in history.

Among innocent bystanders affected by the deal are sports fans in Washington, D.C. MCI got its start in D.C. and for years the city's downtown sports arena has borne its name. The arena, which is home to the Wizards, Capitals and Mystics will now be known as the Verizon Center.

In the San Francisco area, Giants fans have been mourning the switch from SBC Park to AT&T Park and a spirited petition drive has suggested renaming it Mays Field in honor of Willie Mays.

The latest deal establishes Verizon as the nation's number two telecommunications company. AT&T, formerly SBC Communications, is the largest. That raises the question of what happens to BellSouth and Qwest, the two remaining regional Bell companies. The most likely outcome is that they become prime acquisition targets.

All involved deny that any such deal is in the works.

Verizon has completed its $8.5 billion purchase of disgraced long-distance carrier MCI, paying much more than it initially intended, thanks to rival Qwest'...

Spitzer Wins Cramming Concessions from Verizon

Under prodding from New York Attorney General Eliot Spitzer, Verizon has agreed to give greater protections to consumers who have unauthorized third party charges placed on their telephone bills.

The agreement with Verizon Communications Inc. marks the first time a telephone company has been required to take steps to monitor and correct the fraudulent billing practice known as "cramming."

"Verizon has an obligation to protect its subscribers from fraud," Spitzer said. "Under this agreement, the company will take a series of steps to protect individual consumers and small businesses from third parties that place unauthorized charges on phone bills."

The agreement applies only to Verizon's New York customers. To extend similar protections to consumers in other states would require action by federal regulators, state authorities or Verizon.

The Attorney Generals settlement focuses on contracts between Verizon and other companies to provide internet access, web hosting and other services. Through these contracts, Verizon had agreed to add third party service charges to a consumers telephone bill.

Thousands of New Yorkers each year and many more nationwide have complained about unauthorized charges that have been "crammed" onto their phone bills. Many people said Verizon did nothing to assist them when they protested the charges on their bill. Verizon instead insisted that consumers resolve the matter with the third parties themselves.

Many of those targeted by "crammers" are small business owners, whom fraudulent operators often claim authorized the charges.

The Attorney Generals agreement with Verizon requires the following:

• Verizon must directly resolve consumers complaints by removing unauthorized charges and blocking future charges. While Verizon had promised to do this in the past, the investigation uncovered numerous instances when Verizons representatives did not follow this policy, or were not aware of it;

• Verizon must terminate contracts with third parties that have persistent complaint levels. The Attorney Generals investigation found that in some cases, Verizon did not promptly take action against parties with high complaint levels, even after lawsuits and regulatory actions had been commenced;

• Verizon must ensure that each bill containing third party charges includes a toll-free contact number for consumers to call to question the bill. Current FCC regulations require that such information be provided. However, the Attorney General s investigation revealed numerous instances where the number provided on Verizon bills was not correct; and

• Verizon must provide credits for "crammed" third party services to consumers where credits have not already been given.

Verizon has also agreed to pay $75,000 to the state to resolve the Attorney Generals investigation.



Spitzer Wins Cramming Concessions from Verizon...

SBC Buys AT&T

It's official. The boards of SBC and AT&T have approved the sale of AT&T to SBC for about $16 billion.

SBC thus becomes a juggernaut with enormous holdings in local, long-distance and wireless communications.

The merger will:

• Create the nation's largest telecommunications company;
• Put pressure on Verizon, BellSouth and Qwest to bulk up;
• Put MCI and Sprint, which just bought Nextel, into play.

The new entity will include SBC's local telephone properties in Texas, California, Connecticut and much of the Midwest, AT&T's long-distance business and SBC's roughly 50 percent ownership of Cingular, which recently acquired what was formerly known as AT&T Wiress.

The transaction is certain to elicit howls of protest from consumer advocates, who will claim it reduces competition and drives up prices.

The deal puts Verizon, now the nation's largest telecommunications company, in the hot seat. If it wants to maintain its No. 1 spot, its most likely takeover target would be MCI, the nation's second-largest long-distance company.

For SBC, the AT&T acquisition is mostly about going after business customers in a big way. The AT&T name, though extensively tarnished in recent years, still resonates with older business types looking for reliable business telephone and networking services.

Though among telecom groupies, SBC has a reputation for fearlessness, or perhaps ferocity, it remains largely unknown outside its Texas base, which has been a disadvantage in selling service to large corporate clients.

Though Sprint now becomes a potential takeover target, the fact that it -- unlike AT&T and MCI -- operates a large wireless venture makes it problematic for Verizon and BellSouth. Since they both have large wireless holdings too, there would likely be stiff anti-trust opposition to their acquiring Sprint.

Qwest, the runt of the Baby Bell litter, is in no shape to acquire anything and is hardly an attractive takeover candidate and thus remains where in its customary spot ... on the sidelines.

By Any Other Name ...

What, then, becomes of AT&T's fabled -- or, if you prefer, infamous -- brand name? Because SBC's name is so little known and unharmonious, many marketing types are urging it to keep the AT&T moniker, at least on the AT&T portion of the business.

Corporate pride being what it is, it's not likely SBC will dump its own name and take on that of its latest prize. When Cingular bought AT&T Wireless, the theory goes, it stuck with its own rather pedestrian brand name.

Maybe Cingular would be a singularly simple solution? The entire collection could be named Cingular, assuming BellSouth didn't object. If it did, SBC could simply acquire it as well.



The Boards of SBC and AT&T approved the sale of AT&T to SBC for about $16 billion. SBC becomes a juggernaut with enormous holdings in local, long-distance ...

Time Warner Cable Plans Cell Phone Service

Cable giant Time Warner is said to be in talks with Sprint to provide cell phone service to its cable customers. The deal would make Time Warner the only major cable company to offer wireless service as part of its "bundle" of offerings.

Telephone and cable companies have been in a race to provide a quadruple play -- telephone, television, wireless and high-speed Internet service. The theory is that customers who get all four services from a single company on a single monthly bill will be much less likely to switch to another provider.

Verizon, SBC and BellSouth all provide telephone, wireless and Internet service but, except for scattered local-market tests, must rely on satellite to fill the television part of the package.

The Wall Street Journal reports that Time Warner is close to finalizing a deal with Sprint, though neither company would publicly confirm that. Time Warner would initially test the service in Kansas City, probably in early 2005, before rolling it out to its other markets.

Time Warner has already made itself into a major player in the local telephone business, which it now provides in all 31 of its major markets, with about 200,000 telephone subscribers expected by year's end. The company has 11 million cable subscribers.

It's expected that Time Warner will put its brand name on the cell phone service, with Sprint providing the underlying network. Sprint has similar deals with ESPN and Virgin Mobile, among others.



Telephone and cable companies have been in a race to provide a quadruple play -- telephone, television, wireless and high-speed Internet service....

Sprint and Nextel Make It Official


Sprint and Nextel have announced approval by both company's directors to join forces in what they call "a merger of equals." The combination will create America's third largest wireless company, augmented by a global IP network that will offer consumer, business and government customers new broadband wireless and integrated communications services.

The new company, which will be called Sprint Nextel, also intends to spin off to its shareholders Sprint's local telecommunications business following the merger.

For customers, the merger combination will allow Sprint Nextel to:

• Offer digital wireless service in all 50 states, Puerto Rico and the U.S. Virgin Islands. Sprint Nextel and its affiliates and partners cover a total domestic population of 262 million.
• Provide consumers more choice through investments in wireless multi-media, web browsing, messaging, gaming and music on the go.
• Provide integrated wireless and IP-based wireline solutions to business.
• Improve customer service and sales performance through joint capabilities.
• Invest to deploy next-generation wireless data services.
• Improve wireless network quality and coverage.

The consolidation may not be over just yet. Published reports this week suggest Sprint itself is in play, with Verizon Communications Inc., the major stockholder in Verizon Wireless, interested in acquiring Sprint.

Sprint and Nextel currently have a combined total equity value of approximately $70 billion and serve more than 35 million wireless subscribers on their networks and 5 million additional subscribers through affiliates and partners. The two companies, along with their affiliates and partners, operate networks that directly cover nearly 262 million people, more of the U.S. population than any other carrier, the companies said in a statement.

Sprint and Nextel Make It Official...

Sprint, Nextel Merger May Be Next

Consolidation appears to be the buzzword in the mobile telephone industry. On the heels of Cingular's acquisition of AT&T Wireless comes word that Sprint and Nextel may be about to join forces.

A merger would create an entity of more than 38 million wireless subscribers, but it's not clear how that would affect customers of the individual companies.

Sprint is currently the number three U.S. wireless phone company and has recently invested heavily in infrastructure. The company has announced it will spend $3 billion over the next three years to upgrade its mobile network and develop high-speed Internet services.

Sprint has over 26 million subscribers and produces more than $26 billion in operating revenue.

Nextel boasts the largest all-digital wireless network in the country. It has just over 15 million subscribers, most of them businesses, which like Nextel's walkie-talkie "push to talk" instant connection feature. Sprint has also begun development of a walkie-talkie feature.

Sprint, on the other hand, has a nationwide wireless data system, something Nextel would have to spend billions to develop.

Nextel's management team is highly regarded, something that's never been said about Sprint's.


Sprint, Nextel Merger May Be Next...

ESPN Suits Up for Cell Service

ESPN is getting into the cell phone business. The all-sports cable channel's ESPN Mobile will make offer sports junkies instant access to scores and sports news. ESPN is mostly owned by Walt Disney Co., which is also planning a Disney-branded cell phone service.

ESPN Mobile will operated over Sprint's network. Sprint, the nation's third largest cellular carrier, also provides the underlying communications service for a number of other companies, including Qwest, AT&T (not AT&T Wireless, which has merged with Cingular) and Virgin.

ESPN's cable channel reaches nearly 90 million U.S. homes and the company's executives are betting many of them will want to switch to a cell phone service that puts them just a click away from scores and headlines.

Tightly-targeted cell brands may be the next big thing in wireless communications. Virgin Mobile is aimed at younger users, as is Nextel's Boost Mobile.

Although details of the Disney cell service aren't yet known, it will presumably be targeted to



ESPN Suits Up for Cell Service...

Risk of Cell Phone Explosions Growing

You can add explosions to the hazards associated with cell phones. Federal safety officials say they've received 83 reports of cell phones exploding or catching fire in the past two years. The industry blames counterfeit batteries but others aren't so sure.

The U.S. Consumer Product Safety Commission (CPSC) has handled three recalls this year -- the Kyocera Smartphone, Kyocera Slider, K400 and 3200 Series and Verizon Wireless LG-brand cell phones.

Burns to the face, neck, leg and hip are among the dozens of injuries reported to the CPSC. The agency says it is working with companies to create better battery standards.

While counterfeit batteries are contributing to the problem, market pressure to make phones smaller and more feature-packed aren't helping matters. Industry spokesmen insist the risk is tiny and that off-brand batteries are to blame.

"Statistically it is extraordinarily rare," said John Walls, spokesman for the Cellular Telecommunications & Internet Association. But the CPSC and consumer groups caution that with 170 million cell phones in use, the number of incidents is likely to increase.

"CPSC is receiving more and more reports of incidents involving cell phones, and we're very concerned of the potential for more serious injuries or more fires," said CPSC spokesman Scott Wolfson.

• A California teen suffered second-degree burns when her Kyocera Wireless 2325 cell phone caught fire last July, according to local fire investigators. The 16-year-old Ontario girl's phone burst into "fist-size flames" without warning, fire investigators said.

• In October 2003, a Kyocera phone began sizzling and then exploded on a car seat. The phone was sitting on her daughter's lap as Tina McChristian was driving down an Omaha street. It began to sizzle, then exploded, propelling the battery into her granddaughter's car seat.

• In August 2003, a 33-year-old Dutch woman was injured when her Nokia phone exploded in her hands. On October 2, 2003, a supermarket employee in the Netherlands burned his legs when a Nokia phone exploded in his pants pocket.

• In California, Curtis Sathre, 13, picked up his Verizon LG cell phone to make a call when it exploded, leaving him stunned and bleeding, the Associated Press reported.

• Marcelino Gonzalez, 62, suffered second-degree burns when his Kyocera phone exploded in his hand as he turned it on to make a call. "If it was to my face it would have blown up in my face," Gonzalez, 62, said.

While the industry insists the problem is limited to counterfeit batteries and defective chargers, consumer advocates say that's by no means proven. They noted that some of the phones which exploded had been purchase a short time before the fires and the owners had never replaced the batteries or modified the phone in any way.

"Speculation abounds that coins or keys could cause shorting when they come into contact with the metal tags which are used to charge the batteries. Such a short, in theory, might cause the battery to overheat," notes the Wireless Consumers Alliance, a not-for-profit California organization.

"Still another conjecture is that the vents which allow heat from the battery may be obstructed causing overheating. Our guess is that the exploding cell phones are caused by defects in the battery or in the phone's power amplifier -- not because the battery is off brand -- but more investigation is required and caution is advised," the organization said in a statement on its Web site.

Cell phone batteries can reach temperatures of at least 600 degrees, so proper venting is crucial.

Cell phone carriers and manufacturers urge users to buy their phones and batteries directly from phone companies.


Burns to the face, neck, leg and hip are among the dozens of injuries reported to the CPSC. The agency says it is working with companies to create better b...

Sprint Named in Fat Fingers Suit

A New York class action charges that Sprint and ASC Telecom victimized consumers through a "fat fingers" scheme. The companies allegedly set up numerous toll-free numbers that differ by only one digit from their competitors' numbers.

Thus, customers trying to call AT&T at 1-800-CALL-ATT would get Sprint if they accidentally dialed 1-800-CELL-ATT.

Sprint and ASC Telecom charge their accidental callers rates vastly greater than what the callers' intended providers would have charged them, the suit argues.

The suit alleges the practice amounts to fraud and violates New York's prohibitions on deceptive actions.

An appeals court upheld the suit's class action certification but agreed with a lower court that it should not be a nationwide class action.

New York's General Business Law "requires the deceptive transaction to have occurred in New York, leaving potential class members from outside the state, who were victimized by defendants' practices, with no viable claim under the statute," the appeals court ruled.



Sprint Named in Fat Fingers Suit...

Sprint, AT&T; Denied Service Based on Credit Reports

Sprint will pay $1.125 million and AT&T; $365,000 to settle federal charges that they failed to tell applicants they had been denied telephone service because of poor credit reports.

The Federal Trade Commission charged that Sprint used consumers credit reports to deny them telephone service, and that both AT&T; and Sprint placed conditions or restrictions on consumers service, without telling the customers why they were doing so, contrary to federal law.

The Fair Credit Reporting Act (FCRA) requires that consumers be told when an adverse credit report has affected the service they receive and they must be told how they can obtain a free copy of the credit report so that they can dispute any errors in it.

According to the FTC, Sprint and AT&T; obtain consumers credit reports to determine their eligibility for telephone service. In some cases, the companies deny service, require consumers to make an advance payment or deposit, or limit the charges they may incur if the credit review shows the consumer to be a credit risk.

The FTC complaint alleges that all of these are adverse actions under the FCRA, triggering the companies obligation to provide the consumers with a notice disclosing the adverse action taken and providing the name, address, and phone number of the credit bureau from which the consumers credit report was obtained.

The FTC alleges that AT&T; and Sprint in many instances took adverse action, but failed to provide complete notices (or, in the case of Sprint, in some cases failed to provide any notice) in violation of the FCRA. The incomplete notices allegedly failed to tell consumers, among other things, of their rights to a free credit report and to dispute the accuracy of information in it.

The FTC also alleges that Sprint violated the Equal Credit Opportunity Act (ECOA) by failing to provide the notices mandated by that statute or by omitting certain required information in their notices.

The consent decrees order Sprint to pay $1,125,000 in civil penalties and AT&T; to pay $365,000. The decrees bar the companies from future violations of the adverse action notice requirements of the FCRA and, in the Sprint decree, the ECOA. Both consent decrees contain standard recordkeeping procedures to assist the FTC in monitoring the companies compliance.

Both companies denied that they had violated the law but said they agreed to settle the case to avoid the cost of litigation.



Sprint, AT&T Denied Service Based on Credit Reports...

Illinois Hits LCR Telecom With 22 Complaints

Unscrupulous long distance providers continue the practice of "slamming," even though it's illegal. Not content to harass consumers by switching their long-distance service without telling them, some companies have been preying on small businesses as well.

Illinois Attorney General Lisa Madigan has filed suit against a Michigan company for allegedly "slamming" more than 20 small businesses across her state.

In the suit, Madigan charges that LCR Telecommunications, LLC has perpetrated a classic telephone "slamming" scheme. During its investigation of individual complaints, Madigan's office uncovered the fraudulent telephone slamming scheme that has hit small businesses in at least 11 Illinois counties.

Madigan says telephone slamming deprives consumers of their right to choose a long distance telephone rate plan and often forces the consumer to pay increased long distance costs and carrier switch fees. Consumers also must spend time investigating and undoing the switch.

Her suit also alleges that the company provided her office with falsified proof of authorization, attempting to cover up its fraudulent activities passing off long distance switches as having been approved by employees who, in several cases, didn't even work at a victimized business.

"Slamming is inconvenient, expensive and illegal," Madigan said. "Small businesses have enough work to do without trying to fight fraudulent activities. My office will seek to ensure that this company pays for the time and trouble these companies have had to spend dealing with this billing nightmare."

Madigan's office has received 22 complaints against LCR from small businesses in Champaign, Cook, Douglas, Jefferson, Macon, McLean, Moultrie, St. Clair, Tazewell, Vermilion and Woodford Counties. The businesses allege they were billed by LCR but deny ever having authorized the company to be their long distance carrier.

Madigan's suit charges LCR with violations of the Illinois Consumer Fraud and Deceptive Business Practices Act by switching companies' telecommunications service without proper authorization and then trying to cover up the fraud.

LCR allegedly provided Madigan's office with proof of authorization for the long distance telephone service switches. The proof included the name, title and birth date of the person who provided the authorization or an audio recording of a telephone conversation authorizing the switch. Madigan said that in numerous cases, the person named was not an employee of the company, the information about the person is inaccurate or the voice on the recording does not match the voice of the person who supposedly authorized the call.

Madigan's suit seeks to prohibit LCR from slamming consumers in Illinois. Additionally, it seeks restitution for LCR's customers, civil penalties of up to $50,000 and up to $50,000 for each violation found to have been committed with the intent to defraud. LCR, a long distance telecommunications service resale company, has been authorized to provide service in Illinois since November of 2002.

According to a recent Federal Trade Commission survey, "Consumer Fraud in the United States," 6.5 percent of the U.S. population has fallen victim to telephone slamming schemes. Madigan's office has brought 29 slamming enforcement actions since 1995.

To help prevent telephone slamming, Madigan suggested that consumers check their telephone bills carefully to see if their long distance carrier has changed; look for hidden charges on their telephone bills or unexpected fees for a provider switch; and put a PIC Freeze on their telephone lines. A PIC Freeze form can be obtained from the consumer's local telephone company and instructs the telephone company not to change the consumer's long distance carrier without proper authorization.



Illinois Attorney General Lisa Madigan has filed suit against a Michigan company for allegedly "slamming" more than 20 small businesses across her state....

Brits OK Cell Phones in Hospitals

A British agency has declared that a total ban on cell phones in hositals is not necessary. Rather, the Medicines and Healthcare products Regulatory Agency (MHRA) says hospitals should introduce reasonable measures to balance the risks of mobile phones interfering with critical devices and the desire for better communication in hospitals.

The agency said the new advice takes account of recent developments in mobile technology and the growing communication needs of patients, visitors and hospital staff.

Some mobile devices can cause interference with critical medical equipment and it is important these are turned off where a risk exists, said Prof. Kent Woods, Chief Executive of the MHRA. However, he said there is no reason why mobile technology can't be used in designated areas of hospitals where there is little or no risk of interference with critical medical equipment.

"Mobile technology can be an easy and quick way for staff to communicate and help them to deliver the best possible care to patients. Overly restrictive policies can act as obstacles to this beneficial technology so this updated advice will help ensure that hospitals reap the benefits of mobile technology without compromising patient safety," Woods said.



Brits OK Cell Phones in Hospitals...

Cell Phone Carriers Agree to New Ground Rules in 32 States


Three of the largest cell phone providers have reached agreement with 32 state Attorneys General, agreeing to provide more accurate coverage maps, give customers at least two weeks to terminate contracts without incurring penalties and improve how they market services to consumers.

The settlements, announced by Illinois Attorney General Lisa Madigan, affect almost 90 million customers nationwide of Verizon Wireless, Cingular Wireless and Sprint PCS. Each carrier will pay $1.67 million of a total of $5 million to the states to cover the cost of the investigation and to support consumer education.

These agreements mean millions of Verizon Wireless, Cingular Wireless and Sprint PCS customers will be provided with the complete and accurate information necessary to make an informed choice about which plan best suits their needs, Madigan said. More importantly, if consumers are not satisfied, they now have a clear exit out of a contract.

The attorneys general first began investigating the companies for possible violation of consumer protection laws three years ago after receiving complaints about misleading advertisements and service agreements,

Madigan said a major concern was the carriers coverage maps, referred to as rate maps, because they indicate where particular rates are available. Madigan said rate maps often were deceiving because they simply were colored-in maps of the entire United States.

Coverage was not always available in the entire calling area for a variety of reasons, including lack of cell towers, lack of roaming agreements, lack of capacity to accommodate peak call periods and obstructions such as buildings, hills and trees.

Verizon Wireless, Cingular Wireless and Sprint PCS now will be required to provide coverage maps that are as accurate as possible using current technology.

In addition, the companies have agreed to:

• Provide new customers with a two-week minimum service trial to make sure service is available when and where they need it. During the trial period, new customers will be permitted to terminate their contract for any reason without having to pay an early termination fee.
• Provide a full refund of activation fees if consumers decide to cancel their contracts within the first three days of service, excluding national holidays.
• Fully disclose the costs and limits of their wireless services in all retail, Internet and telemarketing sales.

All three of the companies said they are already in compliance with the settlement terms and have made changes in their maps and advertisements since the inquiries began.

Mobile carriers were the No. 2 industry for complaints to Better Business Bureaus last year, after auto dealers. The industry had the second-lowest consumer satisfaction ranking, beating only cable providers, in the University of Michigan's June consumer satisfaction index. The Federal Communications Commission received 21,357 consumer complaints about wireless service in 2003, and 2,133 of those were related to the way companies market and advertise.



Cell Phone Carriers Agree to New Ground Rules in 32 States...

AT&T Agrees to Pay Refunds to New Yorkers

With prompting from New York Attorney General Eliot Spitzer, AT&T has agreed to pay refunds to as many as 311,000 New Yorkers who were improperly billed.

As part of the settlement, AT&T Communications of New York will also reform its billing procedures, provide consumers with additional information on telephone services and pay $400,000 in penalties and costs.

"Communications companies need to do a better job of communicating with customers about bills for services," Spitzer said. "This settlement will reconcile improper billings, reform some billing practices and provide new information to help consumers make informed choices about telephone service."

The settlement follows a six-month investigation by Spitzer's office of AT&T's billing practices. The investigation began in January, after the Attorney General's office received hundreds of complaints from consumers who were billed for long distance telephone service that they neither requested nor used.

This was the result of a change in AT&T's billing policies in which the company sought to impose a monthly fee of $7.72 on "basic rate" customers. However, many of the consumers charged this monthly fee were not AT&T long distance customers at all.

Consumers who tried to correct this billing error by calling AT&T endured long waiting periods, were often given inaccurate information and were subjected to aggressive sales tactics. Even after receiving confirmation and documentation that the matter had been corrected, some consumers continued to receive bills and past due notices regarding their accounts.

Under the settlement, AT&T will do the following:

  • Provide for restitution and credits for those who were incorrectly billed;
  • Update and correct billing lists to exclude consumers who are not AT&T customers;
  • Cease collection efforts for past-due accounts linked to monthly charge;
  • Send a notice to all of its "basic rate" customers informing them of the terms of their service plan; and
  • Advise customers on how to switch AT&T plans, change long-distance carriers, or cancel long-distance service completely.

Consumers have 45 days during which they may register a complaint and request reimbursement from the company.

As part of a settlement, AT&T has agreed to pay refunds to as many as 311,000 New Yorkers who were improperly billed and pay $400,000 in penalties and cost...

Cablevision Rolls Out Internet/Cable/Phone Package

Competition for local telephone service is at last heating up, as cable companies begin their first serious push into local and long-distance service, routing calls over the Internet to avoid the call completion charges that artificially inflate the price of long-distance calls.

Cablevision today rolled out its first Internet telephone package -- combining local and long-distance telephone service with high-speed Internet access and digital cable television, all for $90 per month. Cox Communications started marketing a similar plan a few weeks ago.

Cablevision said the pricing makes the Internet phone service practically free, since many consumers are already paying $90 a month for cable and high-speed Internet access. The $90 price will be good for one year.

Cox offers a $99.99 plan that gives customers either unlimited phone calling or digital cable, plus a premium service for $124.99 that offers all that plus additional services.

Local telephone companies aren't likely to welcome the news. They're already losing business to cell phones and to competitors like AT&T and MCI, who lease space at discounted rates on the local companies' circuits.

Cablevision already has about 100,000 telephone customers in its New York service area. It charges about $35 per month for standalone phone service. It charges $45 for high-speed Internet access and $40 for digital cable if purchased separately.

The Bell companies have been responding to the competition by offering their own packages, usually consisting of local, long distance and DSL Internet service. Though still losing basic business, the Bells are taking long-distance business away from AT&T and MCI are a rapid pace.

SBC Communications has been the most aggressive Bell company in pricing bundled service. It charges $105 a month for unlimited local and long-distance calling, high-speed Internet and television, delivered by EchoStar Communications Corp. For an extra $25, it will throw in 250 cell phone minutes per month.

Verizon, which competes with Cablevision in the New York area, has a package comparable to Cablevision's, selling for $123.85 per month.

AT&T, MCI Raise Rates

The trend is reversed among the long-distance carriers. As their business deteriorates, they're raising prices as fast as they can.

AT&T is adding an "in-state connection fee" in six more states starting next month. The company says its fee covers extra costs of doing business in various states. Less than a year ago, AT&T assessed such a fee in only 12 states. Now the total will be 25 -- half of the states in our country. What's more, MCI and Sprint have followed AT&T with similar fees in the past.

MCI will increase phone rates and fees effective July 1st. Monthly fees on 17 domestic service plans will rise $1. Five different international calling plans' fees increase $1 as well. International calls from the U.S., which connect to mobile phones overseas, will be charged at higher rates.

MCI is said to be making plans to quit offering consumer phone service, including local and long-distance. The next day, MCI's TelecomUSA division increased rates and fees for its 10-10-987 service.

"Those hikes are relatively early in the life of this service, which launched nationally with a big ad campaign last April," said Rich Sayers, editor of consumer help sites 10-10PhoneRates.com and Phone-Bill-Alert.com. "This appears to accelerate MCI's burn-and-churn* marketing strategy in the dial-around segment."

Sprint and AT&T may increase some rates on national long- distance plans in July, but it is more likely those increases will come in August, Sayers said.

Sprint recently increased some fees related to its local phone service in several states. Fees increased 20 to 25 percent in most cases. For example, a charge to not be listed in the phone book going from $2.50 to $3; a Toll Restriction charge for blocking outgoing long-distance calls rising from $2 to $2.50.

"These charges for not getting something really irritate consumers and me too," said Sayers.

Cablevision Rolls Out Internet/Cable/Phone Package...

Florida Court Orders AT&T; Refunds

A Florida court has ordered AT&T to refund wrongful charges to Florida consumers no later than June 15. The long-distance company also faces legal action in Minnesota and it is named in a California class-action lawsuit.

"This order will stop AT&T; dead in its tracks. This is a great victory for the people of Florida and only round one in our fight with AT&T;," said Attorney General Charlie Crist. "We will be relentless and unyielding in our fight against AT&T; on behalf of consumers until all appropriate damages are recovered. If AT&T; violates this court order, the company could be held in contempt of court."

AT&T; attributes the improper billing to a computer problem that has affected about one million customers nationally, many of whom are not current customers of AT&T.;

Under the interim stipulation, AT&T; must:

• Cease and desist any wrongful billing practices;
• Refund all wrongfully billed Floridians for monthly recurring long-distance and associated charges no later than June 15;
• Refrain from pitching services when consumers call about billing issues unless information about additional services is specifically requested.

Although this court-ordered interim stipulation does not resolve any of the allegations of unfair and deceptive business practices set forth in the original complaint by the Attorney General, it does provide immediate relief to Florida consumers who were wrongfully charged.

AT&T; must address all billing inquiries and complaints in an expeditious fashion and provide written confirmation to the Attorney General's Office of credits and refunds made to consumers by June 15.

According to the order issued by Leon County Circuit Judge Nikki Clark, AT&T; must process these refunds based on the company's internal records so that consumers do not have to call to request refunds. If, however, after June 15th Florida consumers believe they are still being improperly billed or unfairly coerced into additional services when calling AT&T; to request refunds, they should notify the Attorney General's Office immediately at 1-866-9-NO-SCAM (1-866-966-7226).

A Florida court has ordered AT&T to refund wrongful charges to Florida consumers no later than June 15. AT&T also faces legal action in Minnesota and Calif...

Cell Phones Blamed in Recent Fires

Consumers often scoff at warnings that their cell phones may ignite fumes from gasoline pumps but two recent incidents lend credibility to the warnings.

In New Paltz, NY, police say a student was burned when his cell phone started a fire at a Mobil station. Chief Patrick Koch of the New Paltz Fire Dept. said the 21-year-old student was filling up his car when his phone rang.

When he answered the phone, a large flash occurred at the nozzle of the pump and started the fire. Fortunately, an employee quickly cut the gas supply, preventing the blaze from getting out of control.

Chief Koch said he no longer has any doubt that cell phones can ignite gas fumes: "I'm positive today, that as of last night, 9:30 last night, I'm positive that a cell phone can ignite."

And in Texas two weeks ago, three oil workers were seriously injured in a flash fire at an oil well site. A spokesman for the Gregg County Sheriff's Office said a cell phone was suspected of causing the fire. The three workers were taken to Parkland Memorial Hospital Burn Center in Dallas.

Capt. Ken Hartley of the Gregg County Sheriff's Office said that investigators believe that a cell phone sparked the blaze, either by ringing or by causing a static electricity discharge when the ringing phone was touched by one of the workers.

Specially-designed "non-ignitable" cell phones are normally used in areas where flammable gases can accumulate. It's not known what kind of phone the workers may have been using.

Reader Response

Gary of Costa Mesa CA writes (6/18/04):
As a highly trained and learned scientist (chemist) I have always doubted this assertion. The Discovery Channel recently ran an episode of Mythbusters in which this theory (and it's only a theory) was put to the test and was found untenable: a cell phone alone cannot initiate a fire in the presence of a flammable mixture of gasoline vapor and air.

The Mythbusters' conclusion was that static discharge from person to car was the most likely initiator of any such fires reported. I know for a fact that a hydrocarbon such as n-hexane is extremely ignitable by static discharge; even pouring it from one container to another can generate enough static potential and a subsequent discharge, causing a fire (because of this, its use in industrial settings is highly restricted). The researchers' conclusions come as no surprise to me.

It is most important to present ALL theories on these gasoline fires and to include a warning that consumers should touch a metal part of their car (e.g., the door) before they touch the gasoline nozzle, besides not using their cell phones while getting gassed up.

Our response:

The two cases we reported on were investigated by local fire and law enforcement officials. There are not urban legends; they are incidents that occurred and were documented. In both cases, it was thought that the cell phones' ringing was related to the explosion. If you have ever chanced to be holding a cell phone when it rings, you may have noticed an occasional static charge and perhaps even a spark arcing from the phone to your clothing or other nearby object.

As you may know, there are in fact "safe" cellphones that are made for use in areas where flammable materials are presented -- refineries and the like. The reason for this is the possibility of static discharge when the phone rings.

If you have ever worked around areas with intense levels of radio frequency, you may also have observed a high degree of static discharge. This is very common at the transmitter sites of radio and televison broadcast outlets, for example. You don't have to be a learned scientist to know that RF energy can contribute to static discharge.

Your advice about discharging oneself is excellent.

Consumers often scoff at warnings that their cell phones may ignite fumes from gasoline pumps but two recent incidents lend credibility to the warnings....

Minnesota Sues AT&T

Minnesota Attorney General Mike Hatch has sued AT&T, alleging that the company violated Minnesota consumer protection laws by charging thousands of Minnesotans for long distance calling plans and related charges that were never ordered.

The Attorney General's lawsuit echoes a class action filed last month in California.

Hatch said he received complaints from consumers throughout Minnesota about erroneous AT&T; long distance charges appearing on their local telephone bills. The investigation revealed that an estimated 16,675 Minnesotans who are not AT&T; customers were assessed long distance calling plan charges by the company.

The erroneous telephone charges apparently began in January 2004, when AT&T; started assessing a $3.95 monthly recurring charge to its long distance Basic Rate Plan customers. However, the $3.95 monthly recurring charge was assessed not only to AT&T; customers on its Basic Rate Plan, but also to consumers who did not obtain services from AT&T;, or who had other AT&T; calling plans.

Attorney General Hatch says that AT&T;'s billing problems are only part of the story.

AT&T; claims they made a mistake. Yet, when consumers called AT&T; seeking a refund, they were not helped, said Attorney General Hatch. Instead, they were placed on hold for extensive periods of time and then transferred to customer service representatives who tried to hard-sell them AT&T; services. Some consumers were even told they had to sign up with AT&T; to get their money back.

Another problem is that AT&T; states they have credited consumer's accounts for the charges, said Hatch. In fact, our office is still receiving complaints from consumers who state they have not received their credit.

The lawsuit seeks to stop AT&T; from wrongfully billing consumers for unsolicited services and from coercively marketing its services to consumers who call to contest or inquire about the charges. It also seeks an injunction, consumer restitution and civil penalties.

Consumers should carefully check their telephone bills to make sure they are not paying for services they did not order. Because the amount in question is relatively small, consumers may not notice any added charges. In addition, many consumers also use automatic bill pay arrangements with their local telephone company so that the local telephone company deducts payment for charges automatically from their checking accounts. In this case, consumers should still carefully review their billing statement that comes in the mail for accuracy.

AT&T is being sued for allegedly violating Minnesota's consumer protection laws by charging thousands of Minnesotans for unwanted long distance calling pla...

Sprint to Pay Florida $2.4 Million for Slamming

Sprint will pay Florida $2.4 million to settle charges that it switched consumers to Sprint long-distance telephone services without permission, a practice known as "slamming."

"This is a case where consumers were victimized by a process specifically designed to deceive them," said Florida Attorney General Charlie Crist. "This $2.4-million payment should serve as a warning that Floridians will not tolerate deceptive business practices."

Consumers were unknowingly switched to Sprint long-distance services after purchasing unrelated items at electronics stores. A customer might visit a store to purchase batteries, for example, and then at checkout be asked to sign what looked like a typical sales receipt but was in fact a letter of authorization. As a result, the customer would leave the store having unwittingly approved a change in his long-distance provider.

Investigations that began in January 2002 also uncovered evidence that sales personnel forged consumer signatures on these letters to meet sales quotas and receive bonuses.

Nearly 4,000 Florida consumers complained about the unsolicited switches and received restitution from Sprint at the time of their complaints. Consumers who believe they are victims of slamming may contact Sprint directly for restitution at 1-800-795-1149.

Florida consumers may also file complaints with the Florida Public Service Commission online at www.psc.state.fl.us or by calling 1-800-342-3552, or they can call the Attorney General's Fraud Hotline at 1-866-9-NO-SCAM (1-866-966-7226).

Sprint will pay Florida $2.4 million to settle charges that it switched consumers to Sprint long-distance telephone services without permission, a practice...

Class Action Charges AT&T Slammed Non-Customers

A California company has filed a class action lawsuit charging that it and other telephone customers were unlawfully billed by AT&T; through long-distance charges added to their local phone bills.

The Allen Lund Company, a national transportation broker based in La Canada, California, is not an AT&T; customer and did not use AT&T; long-distance services, but repeatedly was assessed AT&T; long-distance charges through its local phone bill by BellSouth, the company charged.

The problem is not confined to California. On April 23, Florida Attorney General Charlie Crist issued a consumer advisory warning telephone customers that AT&T; long-distance charges are being improperly added to local phone bills.

"According to AT&T;, their records verify that I've not been a customer since 2002, yet I get a bill every month for $7.56 for a telephone number that I haven't had in over two years," Pamela of Poquoson VA told ConsumerAffairs.com, one of hundreds of complaints the consumer site has received about AT&T slamming.

"I switched my service to the Verizon Freedom Package. ATT billed me anyway on the closed account. I tried to clear this up for 8 months. They just kept billing me at a non-ATT consumer rate," said Alfred of Brick NJ.

AT&T; attributes the improper billing to a computer problem that has affected about one million customers nationally, many of whom are not current customers of AT&T.;

On April 27, 2004, the Florida Attorney General released a public letter to John Polumbo, president and chief executive officer of AT&T;, demanding that AT&T; implement "immediate corrections" to AT&T;'s automated customer service system. AT&T;'s automated system prevents callers from speaking with live customer service representatives and obstructs consumers from receiving refunds for the improper long-distance charges.

The class action lawsuit was filed on August 15, 2003 and asserts claims against AT&T; for unlawful, unfair or fraudulent business practices in violation of the California Unfair Competition Law, for unjust enrichment, and for money had and received.

According to the complaint, AT&T; unlawfully bills some consumers who are not AT&T; customers through their local phone bills, and AT&T;'s computerized billing system continues to assess charges on phone lines not subscribed to AT&T; long-distance service even though AT&T;'s own records indicate that there is no AT&T; call activity on the phone lines or that AT&T; does not provide service to such lines.

CA company filed a class action lawsuit charging that it & other telephone customers were unlawfully billed by AT&T; through long-distance charges added to...

Another AT&T Rate Hike

As AT&T slashes jobs to trim expenses, it continues increasing fees paid by consumers. In March the nation's largest long-distance company is hitting customers with sharp increases in minimum usage charges, a co-billing fee and calling card charges.

Traditionally, long-distance billing had been included on consumers' local bills. Starting three years ago, the big carriers added "co-billing fees" for customers whose local service is provided by another company. AT&T's "Bill Statement Fee" goes up 66 percent next month, to $2.49 from $1.50 per bill. The fee is waived for users who accept a separate bill from AT&T.;

Consumer advocate Rich Sayers notes, "MCI also charges $2.50 and Sprint or Qwest customers pay $1.50 for co-billing. But smart shoppers who want the convenience of one bill can find discount carriers offering lower rates and no billing fee." Sayers is the founder of consumer rate tracking sites including 10-10PhoneRates.com and Phone-bill-alert.com.

In addition to the co-billing rate hike, 15 different AT&T long-distance plans will have higher minimum usage charges beginning in March. Twelve plans that currently require between $2.95 and $5 minimum monthly usage will now require $7 minimum billing before taxes and fees. Three other AT&T services will have new $5 minimums.

"These changes, combined with other AT&T fees added over the last 12 months can really hit consumers hard," says Sayers. "There is the 99-cent regulatory assessment fee. Plus in seven states AT&T added new monthly connection fees of up to $1.95. "

Beginning March 7, consumers who use AT&T calling cards to make international phone calls may be subject to new "International Mobile Termination Charges. The charges apply to both prepaid calling cards sold in stores as well as subscriber calling cards.

When users call someone's land-line phone, they will continue to pay the regular card plan rates. However, if they call someone's mobile phone or other wireless device an additional rate per minute will apply. This can add as much as 27 cents more per minute.

"Mobile termination charges can be a big surprise to U.S. consumers who are used to a system where cell phone users pay for incoming calls," says Sayers. "In many other countries, the incoming caller pays a higher rate to connect to a mobile phone. Most U.S. phone companies are now recovering these costs from their customers."

Another AT&T Rate Hike...

Mobsters Charged in Cramming Scam

The FBI and federal prosecutors say organized crime was behind a telephone "cramming" racket that bilked consumers out of more than $200 million over the last five years by piggybacking bogus charges onto local phone bills.

Two alleged Gambino crime-family members are among those charged with racketeering, conspiracy, money laundering and other crimes, which prosecutors say generated $50,000 to $600,000 per day from 1997 to 2001, netting more than $100 million in profits.

The scam victimized consumers who responded to television, Internet and newspaper ads for free samples of dating services, adult chat lines and psychic consultants. Once the Mob got their number, consumers were charged as much as $40 a month on their phone bills for services they didn't order and never used, prosecutors said. The phony services were described as "voice mail" and other innocuous terms that most consumers never noticed.

The practice of billing consumers through their phone bills for services they didn't order is called "cramming." It's a common problem but this is the first time prosecutors have linked it to the Mob.

"These defendants conspired to defraud consumers by using a sophisticated web of shell companies to generate one of the largest consumer-fraud schemes in United States history," Roslynn R. Mauskopf, the U.S. attorney in Brooklyn, said in a prepared statement. Prosecutors say the scam was the Gambino family's biggest single source of revenue.

The number of people victimized by the scheme isn't known but authorities said it numbers in the millions. A few consumers complained and got their money back, but most did not.

The indictment also names an Overland Park, Kan., company, USP&C, which processed the charges through its agreements with local telephone companies such as PacBell, Southwestern Bell and Verizon (formerly Bell Atlantic), which entitled the company to insert a page into victims' monthly bills to collect for service providers, officials said.

Many of those named in the 20-count indictment are also facing charges ini a $230 million Internet pornography scheme.

The lead defendant in both cases, Salvatore "Tore" Locascio, 44, known as Tore, is identified in the indictment as a Gambino family captain. Also charged is Zef Mustapha, 42, allegedly a high-level associate.

Mobsters Charged in Cramming Scam - Gambino Family Netted Millions, FBI Charges...

Sprint Long Distance Rates Jump 33%

Sprint is hitting consumers with another round of long-distance cost hikes, following the pattern set by AT&T. Increases ranging from 10% on international rates to as much as 33% on interstate rates take effect March 1st.

Rich Sayers, founder of Phone-Bill-Alert.com, says he is appalled at how much the Big three (AT&T, MCI and Sprint) charge for state-to-state calls. "Sprint wants up to 44 cents a minute, when you can get the exact same commodity for less than 5 cents a minute," says Sayers.

"Primus and Everdial are reselling Sprint for 4.9 cents per minute with no monthly fee," Sayers notes.

Analysts say that industry trends have pressured major carriers and smaller players to once again increase rates or fees. Based on revenue, Sprint is the third largest US long-distance carrier. Sprint has tried to rely on cost-cutting to improve the bottom line, most recently planning to outsource customer service operations to IBM.

But shifting consumer preferences have siphoned much revenue away from traditional long-distance service. Wireless, Internet phone service, email and instant messaging are all substitutes. So Sprint is asking its customers to pay more.

In percentage terms, the largest rate increase will be a Sprint Sense Day interstate rate going from $0.15 up to $0.20 a minute -- a 33% boost. Sprint Standard Weekends rate for Saturday calls will go from $0.20 to $0.25. The Sprint Sense and Sprint Sense II services peak rate jumps from $0.25 to $0.30 each minute.

Customers on the Sprint Sense Anytime plan will get a monthly fee increase of 20% to $5.95. Sprint users who have not selected a discounted plan will see very high rates get even higher. The Sprint Basic Dial-1 interstate rates will increase by $0.02 a minute, to as much as $0.44 at peak times.

Basic instate rates will increase by $0.04 a minute in 37 states as well.

Sayers believes MCI will soon join Sprint and AT&T in the 2004 rate and fee spree.

Small phone companies have been adding or hiking fees too. The latest is ZoneLD, which this month increased its Carrier International/Interstate Network Access (CINA) from $1 to $2 per month.

Sprint Long Distance Rates Jump 33%...

Cell Phone Users Unhappy, Survey Finds


No matter which wireless carrier consumers use, a survey shows few are happy with their service. Consumer Reports' annual cell phone survey shows that consumers experienced chronic, major problems with service, billing, and complaint handling with every national cell phone company.

The survey, conducted last September and based on the experiences of over 39,000 ConsumerReports.org subscribers in 17 cities, indicates that overall levels of satisfaction for wireless service remain lower than for most other services that Consumer Reports rates.

The report also shows that the overall satisfaction index has only nudged one point, from 65 to 66 points, since the annual survey was begun three years ago.

Although Verizon topped Consumer Reports' Ratings in each city, as it did in the previous two surveys, it wasn't problem-free. And in 10 cities it wasn't ahead of the pack in a statistically meaningful way. In most of the 17 cities, T-Mobile came in a close second. Some other highlights from the survey:

• Thirty-five percent of respondents were seriously considering a switch of carrier. Most of those who had already switched said they were after better service.
• Nearly 70 percent of those who use a cell phone frequently had at least one dropped call in the week before the survey. Nearly 60 percent said they had a bad connection.
• Only 40 percent said the company's response to a billing inquiry was very helpful.
• Only 31 percent said the company's response to a service inquiry was very helpful.

"Our survey findings are particularly troubling in the context of the recent spate of mergers within the wireless industry, which we believe will lead to decreased competition and increased prices," said Jim Guest, President of Consumers Union, nonprofit publisher of Consumer Reports.

"Consolidation is not a panacea to the service and customer satisfaction problems that continue to plague the industry. In the case of the Cingular and AT&T merger, both companies had problems with overloaded circuits. We don't see how a merger could improve that."

For the first time ever, Consumer Reports asked subscribers about their shopping experiences. Respondents complained of the challenges associated with shopping for a wireless plan. At least 83 percent had some trouble shopping for wireless phone service and 52 percent complained that they had to sign up for a long contract to get the best price on a phone.

When trying to compare plans from competing carriers, 48 percent said it was hard, and 43 percent also found it difficult to figure out the true cost of the service.



Cell Phone Users Unhappy, Survey Finds: No matter which wireless carrier consumers use, a survey shows few are happy with their service....

Qwest Pays Big Refunds in Arizona

Almost 4,200 Arizona consumers have received $721,000 in refunds from Qwest Communications International, and the amount is rising daily as more complaints are processed.

The refunds are a result of a 2001 consumer fraud lawsuit brought by by then-Attorney General Janet Napolitano. It accused Qwest of numerous violations of Arizona's Consumer Fraud Act, including placing unauthorized charges on bills and creating customer-service departments that thwarted consumers' attempts to resolve problems.

In an initial investigation of more than 5,000 complaints, 3,181 were found to have merit and warranted bill credits or cash refunds totaling $653,683 -- about $205 per customer.

The suit was settled in July and an Oct. 7 deadline was set for filing additional complaints. The settlement also required Qwest to reform its marketing practices and pay a $3.75 million penalty.

More than 1,700 additional complaints were filed after it was announced that the company had settled the suit. Of those, more than 1,000 have been sent to Qwest, which will have to pay another $67,000 in refunds, the Attorney General's office said.

Qwest settled the case, along with other pending suits, because it is hoping to win approval to sell long-distance service in Arizona. Approval is expected by December.

Almost 4,200 Arizona consumers have received $721,000 in refunds from Qwest Communications International, and the amount is rising daily as more complaints...

It's Cell Phone Deal Days As Number Portability Nears

October 20, 2003
Cell phone consumers are in the cat bird's seat as Nov. 24 approaches. Though most consumers are unaware of the date's significance, you can bet it's circled in red on every cell phone executive's calendar.

That's the day on which federal regulations require what's known in the trade as "number portability." That means you can switch cell phone carriers and take your number with you.

Since fear of losing their number is the main reason consumers cite for staying with companies they're unhappy with, number portability is a very big deal indeed for cell phone carriers eager to hang onto their customers and poach more of their competitors'.

All of the major companies have started quiet campaigns to get customers to renew their contracts for longer terms. They're handing out free phones, additional minutes, cash credits and other goodies to nail down existing customers before the dread date arrives.

For example:

  • AT&T Wireless is giving away $50 credits to some customers who sign up for an extra year of service. Bigger customers are getting airline miles as well.
  • Cingular is giving free phones and big discounts on color phones to customers who sign up for two more years.
  • Sprint PCS is also giving away less expensive phones and giving big discounts on more expensive models to customers who extend their contracts.

But for crafty consumers, this is no time to be in a rush. Even better days are in store. Once Nov. 24 passes and consumer awareness grows, it will be officially open season. Customers with good payment records who use a respectable number of minutes per month will be frantically courted by both their existing vendors and those who covet them.

Verizon Wireless, the largest wireless carrier, has developed several strategies to improve its retention of customers. One is to provide continuing subscribers with a new phone every two years.

The stakes are huge. Studies indicate that nearly 9 million customers are likely to switch immediately after number portability becomes available.

Over the next few years, the new power number portability puts in consumers' hands is likely to depopulate the cell phone landscape. There are six major national providers now -- AT&T, Verizon, Cingular, T-Mobile, Nextel and Sprint PCS. It's likely that a few years from now, that number will be down to four or fewer as some companies adapt better than others.

It's Cell Phone Deal Days As Number Portability Nears...

Taxes, Fees & Regs Add 18% to Cell Phone Bills

A new study finds that U.S. cell phone users will soon be paying $10 per month per user in fees, taxes and costs imposed by regulations. Nationwide, the study concludes, the higher prices could result in nearly 31 million fewer wireless users.

The report by economists Thomas M. Lenard and Brent D. Mast says the typical wireless user faces a total tax rate (federal, state and local) of over 14 percent on wireless services. This amounts to $6.77 for the average monthly bill of $54.14.

Among the federal regulatory mandates assessed are

  • Wireless Local Number Portability, which allows consumers to take their cell phone numbers with them when changing providers;
  • Number Pooling, which sets aside numbers for anticipated growth;
  • The Communications Assistance for Law Enforcement Act, which requires cell phone companies to modify their equipment to allow law enforcement and national security agencies to eavesdrop on calls;
  • Enhanced 911 (E911), which enables 911 dispatchers to know where a cell phone call is coming from.

The study projects the cost of these four programs to be $2.62 per consumer per month, and says the additional expense could price almost eight million potential wireless users out of the market.

Although it is widely regarded as deregulated, the cell phone industry in fact faces many of the same fees and taxes as landline phone service, the authors note. In fact, the federal tax on wireless service is presently 4.10 percent, the same as that charged for landline service. State and local taxes add another 10 percent on average.

The lowest state and local tax rate is 0.17 percent in Idaho. The highest -- hardly a surprise -- is New York's, a whopping 16 percent.

The federal tax is made up mostly of a three percent federal excise tax that was levied on telephone companies to help finance the Spanish-American War.

Proposed consumer protection regulations will further increase costs, the study finds. The economists said a proposed California measure that would make it easier for consumers to cancel cell phone service during the first 30 days, and requirements for additional truth-in-advertising measures will add nearly $4 to monthly bills.

Viewing cellular as a "mature" market tempts regulators to impose new fees and regulations, the study warned. It noted that, although there are about 175 wireless carriers, six national companies -- Verizon, Cingular, AT&T, Sprint PCS, Nextel and T-Mobile -- account for nearly 80 percent of the market, presenting a tempting target to legislators looking for new tax revenue.

In such a competitive environment the costs associated with these mandates will be passed on to consumers, Lenard and Mast conclude. The wireless sector is under increasing pressure on a number of regulatory fronts most notably in the areas of taxation and regulatory mandates."

While the study says some of the mandates may be justified, the authors contend there has been little or no systematic analysis of the combined effects on average consumers.

You can download the full report online.

Taxes, Fees & Regs Add 18% to Cell Phone Bills...

Portable Phones, Portable Numbers - Court Upholds Cell Phone Number Portability

You'll soon be able to switch cell phone carriers without losing your number. Verizon Wireless has lost a court challenge that sought to overturn a federal rule requiring companies to let users keep the same phone numbers when they switch carriers.

An appeals court in Washington upheld the Federal Communications Commission regulation, which takes effect Nov. 24. Some members of Congress, under heavy lobbying by the cell-phone industry, have said they may seek to postpone the rule.

Mobile-phone companies say the so-called number portability rule will cost the industry $1 billion to upgrade their networks, plus $500 million a year. They say the fact that millions of customers switch carriers each month without number potability proves it isn't needed.

At an April hearing, judges on the appeals court were skeptical and said they doubted claims that the phone number rule isn't necessary to protect consumers.

"The simple truth is that having to change phone numbers presents a barrier to switching carriers, even if not a total barrier, since consumers cannot compare and choose between various service plans and options as efficiently," Judge Harry Edwards wrote for the three-judge panel of the U.S. Court of Appeals for the District of Columbia.

The Federal Communications enacted a rule requiring number portability in 1996. Verizon Wireless and the cell phone's trade association -- the Cellular Telecommunications and Internet Association -- challenged the rule in court.

Association President Tom Wheeler said his group is disappointed by the decision and said the FCC will now have to define "basic how-tos" involving number portability.

Verizon said it will not appeal the court's decision but called it "bad public policy" and said the rule will divert resources from improving network quality, customer service and developing new products.

There are about 146 million U.S. mobile phone users, or about half the population. At the six largest U.S. cellular operators, an average 2.5 percent of customers disconnect their service each month, which amounts to several million people.

Portable Phones, Portable Numbers - Court Upholds Cell Phone Number Portability...

Court Order Snags Cell Phone "Radiation Protection Patches"

The Federal Trade Commission has reached a settlement with Comstar Communications, Inc. and its president, Randall A. Carasco, who marketed and sold "WaveShield," "WaveShield 1000," and "WaveShield 2000" -- so-called cell phone "radiation protection patches."

Using television, radio, and Internet advertising, the defendants allegedly claimed that their products could block up to 99 percent of radiation and other electromagnetic energy emitted by cellular telephones, thereby reducing consumers' exposure to this radiation. In February 2002, the FTC issued a complaint against the West Sacramento, California-based defendants alleging that the claims were false and unsubstantiated.

The order prohibits the defendants from the future marketing or selling of any product that claims to reduce consumers' exposure to radiation and electromagnetic energy, unless the claims are true and can be substantiated by competent and reliable scientific evidence. The order also prohibits the defendants from making unsubstantiated representations about the benefits, performance, or efficacy of any product or service.

The settlement requires the defendants to clearly disclose that most electromagnetic energy emitted by cell phones comes from parts of the phone other than the earpiece, where the WaveShield is placed, and that the WaveShield has no significant effect on this other radiation.

Additionally, the settlement prohibits the defendants from misrepresenting the results of any test, study, or research.

Court Order Snags Cell Phone Radiation Protection Patches...

WorldCom Morphs Into MCI

Having scored the biggest bankruptcy filing and the biggest accounting fraud in corporate history, WorldCom Inc. is creeping off the world stage. It's changing its name to MCI, which was one of the companies it purchased just a few short years ago when bluff and bluster were as good as gold.

The company will also abandon Clinton, Miss., its unlikely corporate headquarters the last few years, returning to Ashburn, Va., near Washington, D.C.'s Dulles International Airport. MCI was previously headquartered in Washington and maintains a large presence there.

WorldCom says it expects to emerge later this year from Chapter 11 bankruptcy, where it landed last July with $41 billion in debt and an accounting scandal that so far includes some $11 billion in bogus revenue and profits.

As it tries to reinvent itself, MCI is launching an advertising campaign that portrays it as a leader in "the convergence of local, long-distance and data services." This concept has been around awhile -- and sounded a lot better a few years ago, when no one was quite sure what it meant.

Now, with customers abandoning their wired telephone service and turning to the Internet for services once carried out over long-distance and leased network lines, it has less appeal on Wall Street and may fall on deaf consumer ears as well.

Despite its troubles, MCI remains the second-biggest long-distance carrier, behind AT&T, and still provides a major portion of the Internet "backbone." The name is still thought to have mostly favorable associations for consumers, who perhaps recall its innovative break-throughs in the 1970s, when it fought its way into the long-distance market previously monopolized by AT&T.

The company's switch to the MCI name in its advertising and promotion that there is no mention whatsoever of WorldCom. Normally, a "new and improved" campaign makes at least passing mention to the company's former identity.

In this case, WorldCom's excesses are seen as so excessive that the company disdains even the slightest mention. "It's a cancer," one executive said.

Having scored the biggest bankruptcy filing and the biggest accounting fraud in corporate history, WorldCom Inc. is creeping off the world stage....

Minnesota Fines Qwest $26 Million

The Minnesota Public Utilities Commission has upheld a $26 million fine against Qwest. It also ordered the company to provide discounts to competitors for making illegal secret agreements with local phone companies.

Also, some of the PUC commissioners said they might refuse to support Qwest's bid to offer long-distance services in Minnesota if the company challenges the penalties in court.

The decision came at a hearing which was Qwest's first opportunity to appeal the punishment, originally announced in February. Company officials said they were disappointed with the ruling, but have not decided whether to file a court appeal.

The PUC found last year that Qwest had illegal secret agreements with two local phone competitors that helped those rivals while hurting others.

Qwest had proposed a compromise under which it would accept some of the discounts and agree not to appeal a fine of $5 million. But PUC commissioners said the Qwest compromise did not go far enough.

The commission must decide by April 17 whether to make a nonbinding recommendation to the Federal Communications Commission on Qwest's long-distance bid.

Minnesota Fines Qwest $26 Million...

WebNet Fined $1.2 Million for Slamming

The Federal Communications Commission has fined WebNet Communications $1.2 million for "slamming" -- switching consumers' long-distance service without permission. It's one of the larger recent fines for slamming and is the first time the FCC has launched a joint effort with state regulators to enforce anti-slamming rules.

The FCC said it and 14 state agencies began investigating WebNet in 2001 after receiving complaints from 185 consumers.

The FCC said WebNet's sales pitch was intended to confuse consumers about whether or not they were changing phone carriers. It released the following script of the company's pitch:

"Thank you for choosing WebNet as your long distance and local long distance provider. You have been selected to receive $100 just for trying our new 7 cent calling plan for all your interstate calls in the continental United States for 180 days. Restrictions may apply, void where prohibited.

"Please answer the following questions. Please state your name and address. Are you the decision-maker choosing WebNet as your long distance and local long distance provider? Please say 'yes' at the tone. For security purposes, state your date of birth or your mother's maiden name at the tone."

The FCC said the script did not meet its criteria, which require that companies determine these six things:

  • the identity of the subscriber;
  • confirmation that the person on the call is authorized to make the carrier change;
  • confirmation that the person on the call wants to make the change;
  • the names of the carriers affected by the change;
  • the telephone numbers to be switched; and
  • the types of service involved.

WebNet's sales pitches confirmed only one of the six requirements, the FCC said. It said the company's calls showed "a pattern of intentional and egregious misconduct."

WebNet, based in McLean, Va., responded that the FCC was attempting government censorship by dictating the specific content of sales pitches.

The states involved in the joint investigation were Alabama, Delaware, Florida, Illinois, Maine, Maryland, missouri, Montana, Ohio, South Carolina, South Dakota, Washington, Wisconsin and the District of Columbia.

WebNet Fined $1.2 Million for Slamming...