AT&T Raises Rates + Data Ceilings

AT&T has recently reconfigured its data plans to increase both the cost and data ceiling.  The minimum priced plan has increased from $15 for 200 MB to $20 for 300 MB and the larger plan’s data ceiling has grown from 4g to 5g. To put this perspective, 1g equals 1,000 MB. These increases will not affect already subscribed members, who are able to keep their current data rates. This price hike is in response to a failed T-Mobile acquisition compounded with a dire need for more spectrum to support the amount of data consumers are using.  To remain competitive in this already saturated cellular market, modern companies are in urgent need of enough spectrum to provide competitive speeds in face of the growing data use by smart phones. The new plan has also raised the data overage cap, to help customers avoid costly overage fees which often times leads to defections to other carriers.

Who does this rate hike affect?  Me.  As a consumer who is just now approaching the smart phone industry, these new rates will directly affect my decisions as to which plan to use. I have been purposefully ignoring the obvious benefits of the all knowing smart phones, claiming all I need from my cellular device is the ability to call and receive messages. As I watch my friends look up directions, check their finances, search the web and in general have a mini computer at their disposal, I know that the time is drawing near when I must have one of my own. These new rate hikes, in theory, would be a benefit if I desire to use a lot of data. The data ceilings are higher and you are able to get up to 5g of data, compared to 4g with their previous plan. Knowing myself, I will not be able to come close to that amount of data use. This means that the new hike will in effect, just tack on another $5 to may bill for data I may or may not use, although it may help in avoiding overage fees. Will $5 be enough to push me towards another service provider? Probably not, but it may be just enough to push back my purchase of a new smart phone for a few more months.

As the race for smart phone supremacy heats up, with new phones and plans appearing and becoming obsolete almost daily, AT&T is trying to make room for the increasing demand for data. The true question is: Will they be able to make room for new customers without pushing their current ones away?

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National Tribal Telecom Association Meeting

Last week, Marsha traveled to New Mexico to attend a meeting of the National Tribal Telecom Association (NTTA). This group represents the nine tribally owned telecommunications companies in the US, including the brand new, Confederated Tribes of Warm Springs’ company, Warm Springs Telecom (WST). Primarily, the association is a political organization that represents the interests of the nine tribal telecom companies, including Warm Springs Telecom, at the Federal Communications Commission (FCC) as well as recognizing the interests of the more than 500 tribes that don’t have their own tribal telcos.

Tribal lands are the most underserved in the country.  While most of America has about 95% telephone service available, most tribes have about 60-65% of their population served by a telephone company.   Significantly fewer members have access to broadband.   Tribal telecom companies and tribal lands have special needs and the NTTA is the only organization that is representing the needs of tribal telecommunications.   It also works with the National Congress of American Indians and the Affiliated Tribes of Northwest Indians, to educate them on positions regarding changing telecommunications policy and the impact on tribal nations.

The biggest change to telephone regulations addressed by the NTTA this session is the proposed change to how rural companies will be subsidized to equalize the cost of telecom service for all Americans.  Since the creation of the Telecom Act of 1934, there has been a Universal Service Fund that helps rural America to have affordable telephone access.   The FCC is now moving from funding rural companies from the cost of each telephone line, to the cost of providing a subsidy for each broadband line, changing the USF to the CAF – the  Connect America Fund. While the change is inevitable, these changes present many challenges.

To assure that tribal telcos are not left in the dust, The NTTA has proposed that in the reorganization of the USF to the CAF, the FCC should create a particular pool of money designated for tribal telcos.   This money would be used to bring some level of equality to the tribes that have been ignored and underserved by the telephone companies that were to bring service to these lands.   With the help of the NTTA and the filings that they have made, we hope that the FCC will recognize the special needs of tribes, and this time, help fund the subsidies that tribal companies, including Warm Springs Telecom, need to enable better services for tribal lands.

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Race For The Future

Social networking is growing at an exponentially increasing rate. A mere eight years ago, social networking sites such as Myspace and Facebook were kindergartners on the gigantic playground that is the internet. Now, nearly a decade later, these sites have not only grown, they practically own the whole school yard.  With Myspace’s revenue and relevance slowly depreciating, it seems that Facebook has a firm grip on the world’s social networking generation. Though true in life and the schoolyard,  when you are the top dog, there will always be those who challenge you.

Several months ago, Google released its archetype, Google+, to compete with Facebook in the social networking arena.  Some of the intriguing features that Google+ offers are the ability to share specific information with people placed into unique groups.  Google+ also has the backing of Google’s inordinately large reach on the web. which includes the support of a  29 billion dollar company. Although Facebook is still the dominant force on the internet, analysts say that Google+ may become a serious threat in the future if they are able to get out of the beta phases.

With competition for the web’s social networking users heating up, so is the focus on privacy issues within the companies. Both Facebook and Google have come under fire for “data mining”, which is the gathering of information to better target users for advertisements or supplements for their online profiles.  Although this is an important issue, it hasn’t slowed down the growth of Facebook in relation to younger users. In fact, Facebook has added over 150 million new users since the beginning of 2011. This could be because these privacy issues are more relevant to the older generations who have not grown up in the age of shared information and hence are more protective of their privacy.

Another prevalent concern with social networking sites is the effect of having all of your information readily available for potential employers or others to search.  In a time where job security and availability is at a half century low, competition can be rigid. There is a underlying fear that the information you share online can come back and haunt you when applying for jobs or other positions.  Many users have switched to using pseudonyms in an attempt to ward of unwanted searches on their names or internet activity.

Personally, the privacy issues are not a big concern of mine when dealing with social networking services. As a child of the information age, complete transparency with your information and interests seems to be the newest form of security. Being entirely open and honest with the vast entity that is the internet entitles you a freedom that doesn’t come with endlessly protecting your information. Am I saying I want a webcam following me around 24 seven? No. But I am proud of what I am doing with my life and feel no need to hide it away.

So what will make the social networking services of our present become the ones of our future? Full integration. The service that finds a way to integrate all aspects of someone’s internet lifestyle, including music player, sports interests, social connections and entertainment will hold the key to our future. Our society is moving ferociously towards the one stop lifestyle; movie rentals combined with shopping and coffee; mega marts where you can buy anything from hand guns to hand soap. We don’t have time to visit a variety of different sites, we want it all in once place.  The service that integrates all of our desires into one click of a button will win the users and hence the race for our future.

-Scott Gilmore-

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KWSO 91.9 The Voice of Warm Springs

Below is a link to a short documentary on 91.9 FM KWSO, a non-profit, community radio station owned and operated by the Confederated Tribes of Warm Springs. KWSO and their station manager Sue Matters have played an integral role in the creation of our new Warm Springs Telco by hosting interviews and sharing information on the new company as it has evolved.

http://airmediaworks.org/runway-submission/kwso

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My Trip To Warm Springs

It was an exciting day for the Converge team on Monday as we packed up our tech gear and ventured to the Warm Springs Reservation for a strategic planning meeting with the professionals who have been helping get the WSTC off the ground. For Marsha and Adam, who take weekly trips to Warm Springs, this was just another day at the office, but for yours truly it was an opportunity to finally put faces to the names I had been hearing about for the past six months.

After a gorgeous ride from our home base in Portland, Oregon we arrived at the Teepee Deli, the location of our meeting.  We were greeted by the WSTC’s newly hired Operations Manager, Jose Matanane, a man who is as personable as he is qualified to run our new Telco. Marsha directed me to the meeting room where I set up my computer and donned the hat of group stenographer, transcribing the entire meeting as it happened.

The goal of this meeting was to evaluate the strategic plan created for the Telco back in 2005 and figure out what had been accomplished and what needed to be updated. The meeting was well directed, lead by our own Marsha Spellman, and was peppered with good humor and an overall commitment to the cause of building this Telco. It was enjoyable to see the passion with which everyone interacted.  You could sense that although this was everyone’s job, they also shared a deep friendship with each other. Many of those in attendance had known each other for nearly a decade.  The meeting concluded with a brainstorming session that brought out a lot of fresh ideas about the future of the new Telco.

The next portion of our day in Warm Springs was spent at the newly remodeled Warm Springs Telecom headquarters and Central Office.. Although the building was not fully renovated, Adam gave a tour of the building and painted a glorious vision of the completed project. He explained the function of each room and the technology that will be located in the CO.  The project has taken more than five years, and became funded last summer with Obama’s broadband stimulus funding. You could hear the pride in Adam’s voice as he toured us around the premises. The new head quarters is going to make a fantastic home base for all of WSTC’s future employees.

To close out the day we visited the KWSO radio station for a quick interview with Adam, Marsha and Jose. The three of them shared their vast knowledge concerning the process of building a tribal telecom, as well as the nearing completion, building and future of the Telco with persistent accuracy.  They are all experts in their fields and gave a great overview for the station to transmit to the tribal community who will benefit from this incredible project.

After the interview, we saw our way out of the station and returned to the Teepee Deli, where I began my journey home. Over the course of this long day, I finally understood why Marsha and Adam have been working so diligently to construct this Telco for so long.  This is a project they really believe in.  During my drive home, I realized, I believe in it too.

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Adam Interviews Sal Sahme

Follow the Link for more info about Adam’s recent interview with close friend Sal Sahme, Director of Business and Economic Development for the Warm Springs Tribes.

http://storycorps.org/blog

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A Converge Com Update!

It is an exciting time at Converge Communications! For the past year, we have been diligently building a brand new telecommunications company on the Warm Springs Reservation. After securing the initial funding for the project with a 5.4 million Broadband Stimulus Grant, we turned our attention towards forming the base of the company and obtaining/building the towers with which the telecommunication signals would be broadcasted. We are using several pre constructed towers, the Pelton Damn and Sid Walter Lookout Tower but also building a completely new Tower on Seekseequa ridge. Adam and I explored the beautiful Warm Springs terrain searching for an acceptable plot of land that would provide the widest range of service while also minimizing ground and environmental disturbance. After a full day of exploration, we found the perfect spot just a hundred or so yards from a main road.

Now that we have located an area for our new tower, we are focusing on hiring our executive staff for the new company. Jose Matanane was our first hire to fill the position of operations manager. We are currently placing ads in the local paper, the Spilyay Tymoo to reach out to potential new employees. A major goal of the new company is to create jobs on the Reservation. For this reason, we are giving priority to applicants who have lived or are currently living on the reservation.

As we begin to hire new employees we had to start researching the furnishing of our Warm Springs headquarters with workstations, executive desks and other office equipment. With the help of the fine gentlemen at Bridge City Office Furniture, we are well on our way to having an affordable and elegant workspace for all of our future employees.

This project is both challenging and exciting and we can’t to see all of our hard work come to fruition. Make sure to check back in for frequent updates!

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Adam Selected To Serve On The Community Access Capital Grant Selection Committee

Our very own Adam Haas was asked to serve on the Mt. Hood Cable Regulatory Commissions’ Grant Review Committee.

The committee convened at the Kennedy School for an all day session where they reviewed 21 Grant Applications competing for the 2011 Community Access Capital Grant. The Grant is designed to support public and non-profit use of interactive, multi-media communications technologies for public benefit purposes.

The grant objectives are to reduce disparities of underserved communities while also improving community involvement in issues of importance to a community. The grant program also strives to provide not-for-profit services functions at a cheaper price and and to improve the delivery or increase the effectiveness of public services to the general public.

The commission anticipates awarding up to $1.5 million in this competitive grant round. After awarding the grants, recipients will have up to three years to complete their project, although the time will vary depending upon the complexity of the project.

Adam’s participation in this grant selection process is attributed to his extensive experience in the telecommunications industry as well as his philanthropic focus in providing service to those in underserved communities.   The recommendations of the Grant Review Committee will be presented to the Mt. Hood Regulatory Commission and the Commission will make the final award decisions.

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RUS Broadband Loan Program Cancelled

Only one month after the announcement that the Rural Utility Service (RUS) had begun taking steps to make $700 million dollars available in program level Broadband loans, the Federal government has marked the loan authority for cancellation. This budget cut is in direct correlation to the recent threat of government shutdown that was narrowly avoided on April 8th.

RUS is the government agency that helps to rural energy and telecommunications programs in rural communities.  RUS is the agency responsible for historically funding both the national electrical grid, which the country relies on for electricity, and the national telephone infrastructure that is the backbone of this country’s ubiquitous phone network.

Much of the money that is given out by RUS is in the form of loans to rural telcos.   But they also fund a number of smaller grant or grant/loan programs.   These monies would have directly benefited both rural communities and tribal lands that are increasingly falling behind the rest of the country’s modern technology and telecommunications standards.

Although a portion of the loans may potentially be restored, this is a step in the opposite direction of the Obama administration’s commitment to invest in broadband infrastructure.

Tony Veach of Bennet & Bennet, a communications law firm, explains:

“The RUS broadband loan program is a major source of financing for rural communications providers and is essential to the President’s and FCC’s broadband goals.”

When faced with a looming government shutdown certain sacrifices must be made; but the RUS Broadband Loan program is far to import to the growth of our rural communities to be swept aside so quickly.

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AT&T Attempts to Absorb T-Mobile

AT&T is currently awaiting the approval of the FCC and Chairmen Julius Genachowski to see if their 39 billion dollar acquisition of cellular provider T-Mobile will clear the necessary regulatory hurdles and become the worlds largest wireless provider. If approved, the new AT&T will have 130 million customers which represents 46 percent of all U.S subscribers.

Genachowski’s major concern with the merger are an increasing lack of competition in the wireless industry. With the absorption of T-Mobile, there would only be three major wireless carriers remaining, with the combination of AT&T and Verizon representing 80 percent of the market.

This merger could have positive implications for rural communities who would gain from the new found providers ability to extend the reaches of broadband internet, although pricing may not decrease as quickly as consumers would hope.

At the moment, Genachowski is avoiding direct comments on the AT&T acquisition, although if the past is any indication of our present, it will only be a matter of time til he approves the deal.

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