Most consumers have heard of major vMVPDs, but few know what each offers, Hub Entertainment Research reported Wednesday. More than 80 percent recognize Hulu Plus Live TV, YouTube, DirecTV Now, Sling TV and PlayStation Vue. Fewer than half could identify the value proposition of each or how its offering differed from the others. Among digital media players, Apple TV led awareness at 92 percent, followed by Amazon Fire TV (89 percent), Roku (88 percent) and Google’s Chromecast (34 percent). Knowledge of what the players offer was far lower, with Roku leading at 40 percent clarity, Apple TV and Amazon Fire TV at 38 percent each and Chromecast at 34 percent. The survey was conducted in January with 1,692 U.S. TV viewers living in a broadband household.
Delays to California Camp Fire restoration efforts mean AT&T needs the FCC to renew emergency authorization to suspend wireline telecom services until May 31, 2020, the carrier requested, posted Thursday in docket 19-13. Since Jan. 28, AT&T restored service to 12 more distribution areas in Butte County, bringing the total to 38 (27.7 percent) of 137 DAs, it said. “Restoration has been delayed in some areas due to contamination issues and road closures caused by heavy rains and mud slides the past 45 days and the local highway departments have been unable to restore road access,” the telco said: The California Office of Emergency Services says "it may take more than a year to complete an estimated 13,000 properties that need to be cleared and soil-tested before utilities crews will be allowed to enter some areas.” AT&T asked in docket 18-306 to extend another emergency discontinuance authorization, related to Carr Fire restoration in Trinity and Shasta counties, until this May 31. Since Nov. 26, the company has restored service to four more distribution areas in Shasta County, bringing the total to 89 (95.7 percent) of 93 DAs in the two counties affected by the Carr Fire. The carrier reported in docket 19-14 that it restored service to all customers affected by Woolsey and Hill wildfires in Los Angeles and Ventura counties, so it no longer needs emergency authorization there.
Frontier Communications faces a second Minnesota investigation in response to complaints by consumers and workers in a state Commerce Department report finding that the carrier possibly violated at least 35 laws and rules (see 1901240025). The Minnesota Office of Attorney General is probing possible consumer fraud in parallel to a Public Utilities Commission’s service-quality investigation, OAG commented this week at the PUC. Responding at length to the Commerce report of about 1,000 complaining consumers, the telco claimed fewer than 450 Minnesota customers had major service problems last year.
AT&T, Verizon Wireless, T-Mobile, Dish Network, Starry, U.S. Cellular and Windstream qualified to buy spectrum licenses in the 24 GHz auction, which starts March 14, the FCC said Wednesday. Cox's application was deemed not qualified. A public notice said 38 applicants qualified to participate and 22 didn't. Forty bidders were cleared for the 28 GHz auction, which ended Jan. 24. Seven OK'd applicants claimed eligibility for a rural service provider or small business bidding credit. Dish isn’t listed but appears to be behind Crestone, records show. Columbia Capital has ties to qualified bidder High Band. The FCC recently completed the 28 GHz auction, and the 24 GHz auction is about to start, Chairman Ajit Pai told Mobile World Congress Wednesday (see 1902270039). In the second half of the year, the FCC will auction together the 37 GHz, 39 GHz and 47 GHz bands, he noted: “We had to get creative to resolve some of the incumbent interests in the 39 GHz band, and we will hold an incentive auction to resolve these encumbrances.”
Frontier Communications closed up 18 percent at $2.96 Wednesday after Q4 results above some estimates. Windstream, which filed for bankruptcy Monday (see 1902250058), has fallen this week, closing Wednesday down 20 percent at 38 cents. Frontier sales were little changed from the year-ago quarter at $2.12 billion, which JPMorgan Chase's Philip Cusick emailed investors was above his forecast. The total included "subsidy and other regulatory revenue" of $94 million. Cusick and another analyst noted the quarterly loss of some 67,000 broadband subscribers missed estimates. "If there was a weakness in the quarter," it was "broadband gross additions," CEO Dan McCarthy responded to an analyst question on a call Tuesday. "Consumer customer churn of 1.94%, improved sequentially and vs. Q4 2017," the telco said. Executives expect to further reduce the portion of consumers who cancel service, focusing on broadband. "You should expect to see further progress" here, McCarthy told analysts. "We have more opportunity to improve churn." This year, "we will continue to build in [Connect America Fund] markets and continue building fiber to the home high-speed internet in some non-CAF rural areas through state funding sources," said interim Chief Financial Officer Sheldon Bruha. McCarthy later said "we hit our goal" for CAF in Q4 and "the challenge is now finding unique ways to market to that." He hopes to add such subscribers. In one state, the company had apparently slightly missed a target, he said. "It had to do with some permitting on some power to some remote locations." Frontier didn't comment further. The carrier may sell more assets, after Everest Infrastructure Partners in January bought nearly 100 of the telco's wireless towers in 17 states. "We are combing the entire country looking at different opportunities to monetize something that’s not core," McCarthy responded to another question. Real estate holdings are the "most likely candidates," he added. "My expectation is you would see some additional sales, maybe not in the near term, but as we go through the next year or so."
An FCC draft item would address an Iowa Network Access Division (Aureon) tariff, said the circulation list, updated Friday. The Wireline Bureau in November launched an investigation into Aureon's tariff transmittal No. 38, including a look at an increase in Aureon's central office switching equipment investment (see 1811090053). The investigation "is applying ILEC-only accounting rules to Aureon even though" an FCC Nov. 8, 2017, decision "classified Aureon as a CLEC," emailed Fletcher Heald attorney James Troup, who represents Aureon. "If Aureon was a horse, what the FCC has done is similar to regulating a horse under rules for horses as well as rules for cars on the grounds that both horses and cars are modes of transportation. Consequently, Aureon is the only company in the entire country that is regulated as both an ILEC and a CLEC." The FCC didn't comment Monday. Also on the updated circulation list are two Enforcement Bureau orders (one in conjunction with the Wireless Bureau) and a draft broadband deployment report, announced by Chairman Ajit Pai last week and sparking mixed reactions (see 1902200057). Off the list was a draft order to amend Part 1 of the rules, including on a lockbox used to collect fees for the Enforcement Bureau (see 1812210072). The FCC circulated a draft order Feb. 13 to resolve an investigation on tariff revisions filed by South Dakota Network, which was also opened in November (see 1811290061).
Broadcom CEO Hock Tan's pay package exceeds $103.2 million, placing him third on As You Sow’s list of the S&P 500's “most overpaid” chief executives for 2019, said the social responsibility group Thursday. Its fifth annual report used a “regression analysis” of proxy statements and other public filings to compute “excess CEO pay” on the basis of “total shareholder return,” plus the percentage of shareholders who voted against their CEOs’ pay packages, said the group. Based on those metrics, the report pegs Tan’s excess pay at nearly $86.9 million, partly because a large proportion of Broadcom shareholders -- 38 percent -- voted against his pay package. Tan tried to spearhead Broadcom's takeover of Qualcomm last year, but was forced to withdraw the bid after President Donald Trump killed it on national security grounds (see 1803150060). Disney CEO Bob Iger ranked sixth with a $36.3 million package and excess pay of $22.4 million, said the report. It said 55 percent of Disney shareholders voted against Iger’s package, placing Disney eighth on the list of highest percentage of dissenters. It was the second year in a row Iger placed among the top 25 most overpaid CEOs, said the report. Broadcom and Disney didn’t comment. “Overall CEO pay continues to increase,” but so, too, does shareholder “opposition to high CEO pay,” said the report.
The California Public Utilities Commission sought comment on a report by Sonoma County and Santa Rosa on a September test of wireless emergency alerting. “The exercise allowed Emergency Managers and residents to experience a live test of the communications method that Sonoma County and the city of Santa Rosa will use in the event of an emergency,” the CPUC said: The report found that a call delivered a message to a person or answering machine 51 percent of the time for the almost 300,000 cellphone numbers in the database used for notification. “The test resulted in a 38 percent increase in subscribers to the database,” the CPUC said. “The After-Action Report also cited differences in how the telecommunications providers (e.g., AT&T and Verizon) distributed wireless emergency alerts and found inconsistent policies among the providers for issuing alerts.” Comments are due Feb. 22, replies March 1, in Rulemaking 18-03-011.
While 28 percent of U.S. broadband households are familiar with time-of-use rate programs, only 18 percent report their utility offers one, said Parks Associates Wednesday. Of those who have been offered a TOU plan, 38 percent signed up, said analyst Brad Russell. Familiarity with these programs hasn’t budged much since 2015, Russell said, but smart home devices such as smart thermostats could open a new line of communication with consumers to boost familiarity and convey benefits. They could also help reduce consumers' fears of loss of control, the top inhibitor to TOU enrollment, said the analyst.
The FCC’s partial reopening of the equipment authorization system, announced Friday (see 1901180040), will provide only limited relief, Commissioner Jessica Rosenworcel again warned Tuesday. The federal shutdown could slow FCC work on 5G in general, particularly on clearing mid-band spectrum, she said. Rosenworcel spoke at an Internet Innovation Alliance session on a potential incentive auction for the 2.5 GHz educational broadband service band, with a goal of raising money to close the “homework gap.”