Cell Phones

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.” 

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.

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. 

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.

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.” 

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.”

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.

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.

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. 

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. 

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. 

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.”

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.

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.

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. 

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. 

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.”

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.”

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. 

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.”

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. 

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.

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.

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.” 

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.

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.” 

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.”

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.

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. 

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.

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.

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 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 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 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.

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.” 

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.

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.

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.”

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.

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.

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.

​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.

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."

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.”

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.  

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!”

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.

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.”

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.

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.

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.

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.

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.

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.

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.

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.

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.

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."

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

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!"

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.

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.

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.

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.”

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.

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.

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.

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.”

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.

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.

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.”

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."

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."

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.

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.”

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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."

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.

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.

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.

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.

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.

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