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News tagged: Embarq


Yesterday we reported how the FCC was getting close to rubber-stamping the Embarq and Centurytel merger, imposing conditions that were little more than window dressing. Today finds the new company (CenturyLink) announcing that the FCC has indeed approved the merger. Calling the FCC's approval a "significant and exciting milestone" in a "rigorous review process," CenturyLink insists the new carrier is "committed to investing in our communities and providing our customers high-quality, reliable communications and expanded broadband services."

The problem is, despite a supposed dedication to broadband expansion, the FCC's conditions have CenturyLink doing absolutely nothing they wouldn't have done already (and perhaps less), requiring they go from 87% to 90% DSL penetration in their phone network footprint within three years. The undermanned FCC apparently wanted to rush the approval on CenturyTel's behest, before new FCC boss Julius Genachowski was appointed as the new agency head. The FCC didn't respond to our request as to why the deal was being rushed.

As with AT&T, the FCC allows the carrier to consider resold satellite broadband to mean they've achieved "100% broadband coverage," ultra-low standards under any metric. In a statement, interim FCC head Michael Copps seems oddly aware at the agency's own failings, despite signing off on the merger. Copps actually takes time to suggest that those disappointed in this merger shouldn't take it as an example of the agency's future behavior when it comes to a national broadband plan, or even future mergers:
This particular commitment goes significantly beyond the commitments of previous mergers, but it should not be construed as ideal.
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When the FCC allowed AT&T to acquire BellSouth in one of the largest telecom deals ever, the agency enacted a series of wimpy conditions (pdf). Not only were most of the conditions simply for show, but the FCC made it very clear they really had no intention of enforcing them. AT&T was supposed to offer naked or 768kbps $10 DSL for two years after the merger, but skirted around the condition's purpose by never advertising the services, and making it difficult to order them until people really started complaining. The FCC napped.
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After getting the last of all State regulator approval earlier this week, Embarq and Centurytel have unveiled the new name and logo for the freshly fused company, According to a company press release, the two companies will now be known as CenturyLink. Once the company receives approval from the FCC (a given), the freshly fused company will have 7.5 million access lines, more than two million broadband customers and more than 400,000 video subscribers across thirty three states. The $11.6 billion deal is at the heart of an interesting new rush toward rural telephone company consolidation.

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Last October, the seventh largest ILEC (Centurytel) acquired the fourth largest (Embarq) in a deal estimated to be worth $11.6 billion. Telecompetitor directs our attention to a CenturyTel press release that notes California, Oregon, and Virginia have approved the deal. That leaves just two of the thirty three States the company does business in who've yet to approve the deal. The freshly fused company would have 7.5 million access lines, more than two million broadband customers and more than 400,000 video subscribers.

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The city of Wilson, North Carolina launched a $28 million municipal broadband operation named Greenlight last year, offering symmetrical speeds up to 100Mbps -- far surpassing the best local incumbents Embarq and Time Warner Cable have to offer. Embarq and Time Warner Cable did what any carrier in a government-protected duopoly would do: they began a several year campaign to lobby state legislators to not only pass laws that would effectively cripple or ban such operations, but also prohibit this community from getting access to broadband stimulus funds. In response, local city officials have launched a new website and FAQ arguing against the bills. This IndyWeek report on the Wilson network is a must read, and notes the city went first to Time Warner and Embarq to build the network, but they refused.

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Last October, the seventh largest ILEC (Centurytel) acquired the fourth largest (Embarq) in a deal estimated to be worth $11.6 billion. According to a Centurytel press release, regulators in Georgia, Minnesota, Mississippi, Nebraska and Ohio have approved the deal, bringing it one step closer to completion. According to Embarq, the combined company will operate in 33 states, 18 of which don't require regulatory approval for the merger. The combined company will have 7.7 million access lines, 2 million broadband customers and more than 400,000 video subscribers.

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DSL provider CenturyTel (see our user reviews), who last year acquired Sprint spinoff Embarq in an $5.8 billion dollar deal, says they'll be using LTE technology instead of DSL to deliver broadband service to some rural customers. The first deployments will occur sometime next year in limited areas, according to CenturyTel CEO Glen Post. "It would be 2010 before there would be any significant dollars" spent on an LTE rollout," says Post. "And even then we'll roll out a few markets and then we'll enter (other markets) on a selective basis as we prove success of the technology roll-out." CenturyTel owns enough spectrum to cover about 53% of their service area.

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Back in November, NebuAD and several of the ISPs who were doing business with them (Embarq, WOW, Centurytel and Cable One) were sued over their plan to sell subscriber browsing histories without giving customers a functional opt-out mechanism. As we've stated in the past, NebuAD's system opted users out of receiving the system's targeted ads, but it didn't opt them out of data collection and sales.
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According to some discussion among Embarq customers in our forums, the nation's fourth largest telco has dropped the price of their 10Mbps/896kbps ADSL2+ package by $10. The tier was previously $64.95 stand alone, and $54.95 if bundled with certain voice packages.
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story category Embarq Lets You Talk To A Real Human
At no extra charge!
(old news - 10:33AM Friday Dec 05 2008)
Embarq has announced that they'll be returning to those ancient days of yesteryear, where customers were greeted by a live human voice when they called the phone company to report a problem with service. Kansas-based Embarq says that calls during business hours to speak with a customer service representative will now be greeted by a live person instead of the usual automated system most companies use today. This, says Embarq says this is only a trial to see if customers really prefer talking to a live human:
"Customer surveys show that consumers are dissatisfied with automated customer care, so we are conducting this trial to see if our customers agree." As part of a nationwide trial, the EMBARQ representatives answering the phone calls are located in the company's North Carolina office and not outsourced overseas. They will greet customers to find out their question or concern and then direct them to the appropriate person.
The entire trial could be moot, given that Embarq was recently acquired by Centurytel for $5.8 billion. The new, larger company, with investors to please, may decide that the costs of live, domestic human support are too high, returning you to the phone navigation mazes consumers know and love.

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story category Embarq Rejected Higher Offer
Ah, those wonderful synergies...
(old news - 09:09AM Monday Dec 01 2008)
Centurytel recently acquired Sprint spinoff Embarq in an $5.8 billion dollar deal, though filings indicate that Embarq rejected a higher offer. CenturyTel’s offer valued Embarq at $40.42 per share, a 36% premium, while the other mystery bidder offered $40.86, a 37% premium.
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This week the seventh largest ILEC (Centurytel) acquired the fourth largest (Embarq) in a deal estimated to be worth $11.6 billion. Users in our Embarq forum are busy trying to figure out what they can expect once the acquisition takes place, after which they'll be customers of a new company with a new name.
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story category Embarq: You Can't 'Ride The Copper' Forever
Go figure...
(old news - 06:41PM Tuesday Sep 23 2008)
Sprint spinoff Embarq currently only offers fiber to the premises (FTTP) to 129 developments (22,000 homes), because new developments (aka "greenfield" deployments) offers the telco the maximum return on ther investment. But according to company comments at a FTTH council meeting today, the telco could begin offering the service to more areas, and may ultimately jump into the TV business like their bigger telco brothers.
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Sprint spinoff Embarq has announced that the company will be laying off around 1,000 employees by the end of the year. The company says they'll be offering "voluntary separation" packages to about 500 to 700 workers, and terminating roughly another 300 contract workers. The job cuts are primarily focused on Embarq’s network services unit, which includes installation and repair technicians. The company has around 18,000 workers. Managers and supervisors will be given first crack at the voluntary severance packages, which include two weeks of pay for every year worked.

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In an effort to improve customer satisfaction, Embarq has announced the "enhancement" of a support hotline for particularly annoyed customers. Customers who didn't get the help they needed from the general consumer help line have always been able to call the company's Consumer Affairs Hotline at 800-877-3345, but now the company promises they'll get working on a resolution within 24 hours. "If we treat our customers as our best friends, we build customers' trust and loyalty," says company spokesperson Dana Chase, who insists she wants to be really annoyed customers' "BFF" (best friend forever) in the company press release. If customers are really angry, they may get a friendship pin and/or bracelet after gym class.

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PC Magazine is offering up their annual survey of the best and worst tech support across industries. In addition to computer and media hardware support, they also key in on the best tech support among both ISPs and VoIP providers.
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Earlier this week Embarq responded to a Congressional inquiry into their recent trial of NebuAD user-tracking ad technology, and the sale of user browsing data. While the letter clarified that Embarq's definition of "informing" users about the trial involved burying fine print in their privacy policy, it really didn't answer any of the specific questions put forth to them by the Congressional inquiry.
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While Charter recently got all the bad PR for their decision to sell your browsing data to NebuAD, they certainly weren't the only ISP tinkering with the technology. Congress now appears to be looking into Embarq's recent NebuAD trial, sending the company a letter asking them precise details about the trial, including how many customers were impacted, in which markets the trial was conducted, and just how those customers were informed.
We are writing with respect to a recent test conducted by Embarq to tailor Internet advertising to the web-browsing patterns of individual Embarq subscribers...As you may know, questions have been raised regarding the applicability of privacy protections contained in the Communications Act of 1934, the Cable Act of 1984, the Electronic Communications Privacy Act, and other statutes, to such practices.
Of course like many ISPs, Embarq announced the trial by burying it in their privacy policy.
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Customer backlash, fears that the technology could violate several privacy and wiretap laws, and the threat of Congressional investigation caused Charter this week to suspend their trials with behavioral advertising firm NebuAD. But what about the companies who were tinkering with the technology long before Charter? Embarq tells the Washington Times that "We are not currently using behavioral targeting tools and have not decided whether to move forward with them, either through NebuAd or with any other vendor." Their privacy policy still references such systems:
EMBARQ may use information such as the websites you visit or online searches that you conduct to deliver or facilitate the delivery of targeted advertisements.
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CNET's Declan McCullagh e-mails me his latest piece, which suggests that ISPs who monitor and sell their customer browsing data could be running afoul of decades-old wiretapping laws. While I've been writing about behavioral advertising for a while, Charter's announcement last week of their decision to use NebuAD technology was the first glimpse many had of the concept.
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