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Google Fiber Headed to Atlanta, Charlotte, Raleigh-Durham, N.C., Nashville; Avoids Verizon FiOS Country

atlanta fiberGoogle has announced it will bring its fiber broadband service to four new cities — Atlanta, Charlotte, N.C., Raleigh-Durham, N.C. and Nashville, Tenn., according to a report on Google’s Fiber blog.

In a familiar pattern, Google recently sent invitations to local news organizations in those four cities to attend events this week, without identifying the subject.

As with earlier similar events, the topic was the local launch of Google Fiber.

The cities were all on Google’s 2014 list for possible expansion. Those left out (for now) include Salt Lake City, San Antonio, Phoenix, Portland, Ore., and San Jose, Calif. Google recently told city officials in those communities it was still contemplating projects, but remain undecided for now.

After the announcements this week, it will take at least one year before Google is ready to light up the first “fiberhoods” in the cities, usually selected based on customer signups.

Google will challenge Comcast and AT&T in Georgia, Time Warner Cable and CenturyLink in North Carolina, and Comcast and AT&T in Nashville. In Atlanta, the fiber build will not only include Atlanta, but also Avondale Estates, Brookhaven, College Park, Decatur, East Point, Hapeville, Sandy Springs and Smyrna.

expansion

Google will offer unlimited gigabit broadband service for an expected $70 a month. AT&T limits U-verse customers to 250GB in Georgia and Tennessee, and Comcast has subjected both Atlanta and Nashville to its compulsory usage cap experiments, setting a monthly usage allowance at 300GB.

Time Warner Cable does not limit broadband customers in North Carolina, but the Republican-dominated state government is also hostile to community-owned broadband, making it unlikely either Raleigh-Durham or Charlotte will see public broadband competition anytime soon.

Fiber-is-comingGoogle officials have also been reportedly sensitive to local government red tape and regulation. In Portland, the Journal reports Google has put any fiber expansion on hold there because Oregon tax-assessment rules would value Google’s property based on the value of their intangible assets, such as brand. That would cause Google’s property taxes in Oregon to soar. Until the Oregon state legislature makes it clear such rules would not apply to Google Fiber, there will be no Google Fiber in Portland.

Google has also once again shown its reluctance to consider any community or region where Verizon FiOS now provides fiber optic service. The entire northeastern United States, largely dominated by Verizon, has been “no-go” territory for Google, with no communities making it to their list for possible future expansion.

Among the collateral damage are Verizon-less communities in northern New England served by FairPoint Communications and Comcast and portions of western New York served by Frontier Communications where Time Warner Cable has overwhelming dominance with 700,000 subscribers out of 875,000 total households in the Buffalo and Rochester markets.

Wall Street continues to grumble about the Google Fiber experiment, concerned about the high cost of fiber infrastructure and the potential it will create profit-killing price wars that will cut prices for consumers but cost every competitor revenue.

http://www.phillipdampier.com/video/WSOC Charlotte Mayor Google Fiber is coming to Charlotte 1-27-15.flv

Charlotte city manager Ron Carlee spoke exclusively to WSOC-TV’s Jenna Deery about how Charlotte won Google over to bring its fiber service to the community. Having a close working relationship between city infrastructure agencies and Google was essential, as was cutting red tape and bureaucracy. (2:10)

Tip for Reporters – Always Follow the Money: Comcast/Time Warner Cable Merger Supporters

Buy a vocal supporter for your merger deal.

Buy a vocal supporter for your merger deal.

The Los Angeles Times published a piece this week noting that the Comcast/Time Warner Cable merger does have its supporters:

To be sure, dozens of groups also support the proposed Comcast merger, including the Los Angeles Area Chamber of Commerce, Orange County Business Council, the L.A. County Economic Development Council and the National Urban League. Television networks including Ovation, Hallmark Channel and Starz also support the deal.

But the article never informs readers the groups in support of the transaction all have direct financial ties to Comcast, Time Warner Cable, or both cable companies. It would only be news if these groups opposed the merger.

Stop the Cap! has found almost no support for the merger deal among independent organizations that are not on the payroll of either merger partner. The myriad of civil rights organizations, trade associations, and non-profit groups penning letters to regulators supporting the deal are nearly all recipients of contributions from Comcast or Time Warner.

Comcast is notorious for capitalizing on their charitable corporate giving by mailing advocacy packages to donor recipients that urge support for the company’s public policy and corporate agendas. Comcast even includes sample letters a group can use to create their own letter of support, which explains why so many are nearly identical.

Although Comcast never threatens to cut off groups that don’t follow through, the company does know who sent letters and who did not, as they all become part of the public record.

In less than 30 minutes, Stop the Cap! was able to trace direct economic ties between Comcast and/or Time Warner Cable and the groups the LA Times story mentions. Readers deserve to know this information and it should have been included in the story.

comcast twcLet us review:

The LA Chamber of Commerce: Time Warner Cable is a “Diamond Club Member,” which the Chamber claims represents the “largest member investors.”

The Orange County Business Council includes a Time Warner Cable executive on its Board of Directors and is a major “investor” in the group.

Not only is Time Warner Cable on the executive committee of the LA Economic Development Council, it also serves on the group’s board of governors. Comcast is also a member.

The National Urban League advocates in favor of almost everything Comcast wants, no doubt because the organization that sold out to big corporate donors long ago is also on Comcast’s payroll. The group has received at least $12 million in in-kind contributions from Comcast, as well as receiving checks for more than 70 local chapter projects. Comcast’s executive vice president David Cohen has sat on the Urban League’s board of trustees since 2008. In addition, the Comcast Foundation, headed by Cohen, gave the National Urban League and some of its more than 100 affiliates almost $2 million from 2012 to 2013, according to an analysis of IRS tax filings by the Center for Public Integrity.

As for Ovation, Hallmark Channel and Starz — they are all cable networks dependent on carriage agreements with the nation’s first (Comcast) and second-largest (Time Warner Cable) cable operators for their economic survival.

Time Warner Cable’s Hullabaloo About Nothing: Its ‘Top Secret’ Rural Expansion Plan is a Yawn

Phillip "I Want My Money Back" Dampier

Phillip “I Want My Money Back” Dampier

For months, Time Warner Cable has deployed its legal team to prevent public interest groups from gaining access to the company’s exhibit of rural broadband buildout plans it had for New York, sent confidentially to the Public Service Commission as part of its proposal to merge with Comcast.

“This information would be difficult and costly for a competitor to compile, such that disclosure would significantly harm Time Warner Cable’s competitive advantage,” Time Warner Cable’s lawyers complained to regulators handling the case. “To allow competitors to have access to this information before Time Warner Cable has had a chance to market customers for which it speculatively built the line would not only negate any competitive advantage, it would allow its competitors to reap the benefits of Time Warner Cable’s investment, causing substantial competitive and financial injury to Time Warner Cable.”

“The compilation of information on all the Time Warner Cable New York deployments, distances, and passings into one document would be of enormous value to a competitor,” the lawyers added. “This information could not be developed independently by competitors, and any estimates developed through publicly available data or data from third-party sources, if possible at all, would be expensive and burdensome to assemble, and less accurate than the data provided in Exhibit 46. […] Therefore, disclosure of the compilation of information on the New York Rural Builds would cause substantial competitive injury to Time Warner Cable, and should be granted exception from disclosure.”

One might expect the mighty Exhibit 46 to contain all of Time Warner’s deepest secrets — secrets that if made public would hand the “competition” the keys to the cable kingdom.

Despite the haughty demands that such information was not to be shared with the public, Stop the Cap! secured our copy of the “top-secret” Exhibit 46 (and here is a copy for you as well).

After reviewing it, it quickly became clear the only thing Time Warner Cable intended to keep secret is how little expansion (and money) the company is devoting to rural New York. The nine-page spreadsheet shows Time Warner spent $5.3 million of New York’s money to expand service to, at most, 5,320 homes or businesses that had no access to cable before. The largest beneficiary of this expansion was the rural (and more affluent than its neighbors) town of Grafton, in Rensselaer County, where 1,152 homes now have access to Time Warner Cable if they want it. An additional 875 homes in Carlisle, Schoharie County now have access as well. Despite dire warnings from Time Warner, “competitors” are hardly rushing to the scene to engage in hand-to-hand combat with the cable company, which is the only provider of broadband service for many of these residents.

As for the rest of upstate New York, Exhibit 46 offers about as much relevance to “competitors” as it does to the rural residents still being bypassed by the cable company. Most of the entries show Time Warner’s expansion projects reached fewer than 10 homes in any particular area. In a large number of those instances, the expansion ended up serving just one additional home or business.

Some examples:

  • Town of Clarence, Erie County – 4 homes or businesses
  • Town of Henrietta, Monroe County – 1
  • Town of East Bloomfield, Ontario County – 22
  • Town of Paris, Oneida County – 1
  • Town of Manheim, Herkimer County – 1
  • Town of Kirkwood, Broome County – 7
  • Town of Tupper Lake, Franklin – 116
  • Town of Gouverneur, St. Lawrence County – 29
  • Town of Brookfield, Madison County – 139
  • Town of Jefferson, Schoharie County – 3
  • Town of Big Flats, Chemung County – (either 2 or 4 – the entry is duplicated)
  • Town of Pompey, Onondaga County – 1

Of the 5,320 homes or businesses now provided access to Time Warner service, 4,104 were subsidized up to 75 percent by the State of New York. Just 1,216 locations were apparently reached exclusively at Time Warner Cable’s own expense.

New Yorkers paid most of the bill because Time Warner Cable couldn’t find $5.3 million in their company coffers to bring broadband to rural residents. But Time Warner Cable could find $80 million to cover the golden parachute compensation package available to just one employee – CEO Robert Marcus, if the company is successfully sold to Comcast for around $45 billion.

Priorities.

No wonder Time Warner Cable’s attorneys fought so hard to keep the “expansion” effort a secret.

Google, Cablevision Challenge Traditional Cell Phone Plans, Wireless Usage Caps With Cheap Alternatives

freewheelLuxurious wireless industry profits of up to 50 percent earned from selling some of the world’s most expensive cellular services may soon be a thing of the past as Google and Cablevision prepare to disrupt the market with cheap competition.

With more than 80 percent of all wireless data traffic now moving over Wi-Fi, prices for wireless data services should be in decline, but the reverse has been true. AT&T and Verizon Wireless have banked future profits by dumping unlimited data plans and monetizing wireless usage, predicting a dependable spike in revenue from growing data consumption. Instead of charging customers a flat $30 for unlimited data, carriers like Verizon have switched to plans with voice, texting, and just 1GB of wireless usage at around $60 a month, with each additional gigabyte priced at $15 a month.

With the majority of cell phone customers in the U.S. signed up with AT&T or Verizon’s nearly identical plans, their revenue has soared. Sprint and T-Mobile have modestly challenged the two industry leaders offering cheaper plans, some with unlimited data, but their smaller cellular networks and more limited coverage areas have left many customers wary about switching.

Google intends to remind Americans that the majority of data usage occurs over Wi-Fi networks that don’t require an expensive data plan or enormous 4G network. The search engine giant will launch its own wireless service that depends on Wi-Fi at home and work and combines the networks of Sprint and T-Mobile while on the go, switching automatically to the provider with the best signal and performance.

googleCablevision’s offer, in contrast, will rely entirely on Wi-Fi to power its mobile calling, texting, and data services. Dubbed “Freewheel,” non-Cablevision customers can sign up starting in February for $29.95 a month. Current Cablevision broadband customers get a price break — $9.95 a month.

Cablevision’s dense service area in parts of New York City, Long Island, northern New Jersey and Connecticut offers ample access to Wi-Fi. Cablevision chief operating officer Kristin Dolan said its new service would work best in Wi-Fi dense areas such as college campuses, business districts, and multi-dwelling units.

New York City is working towards its own ubiquitous Wi-Fi network, which could theoretically blanket the city with enough hotspots to make Cablevision’s service area seamless. But the biggest deterrent to dumping your current cell phone provider is likely to be available coverage areas. Google’s answer to that problem is combining the networks of both Sprint and T-Mobile, offering customers access to the best-performing carrier in any particular area. While that isn’t likely to solve coverage issues in states like West Virginia and the Mountain West, where only AT&T and Verizon Wireless offer serious coverage, it will likely be sustainable in large and medium-sized cities where at least one of the two smaller carriers has a solid network of cell towers.

Comparing the Wireless Alternative Providers

  • Google Wireless will offer seamless access to Wi-Fi, Sprint and T-Mobile voice, SMS, and mobile data at an undetermined price. Likely to arrive by the summer of 2015;
  • Cablevision Freewheel depends entirely on Wi-Fi to power unlimited voice, SMS, and data. Launches in February for $29.95/mo ($9.95/mo for Cablevision broadband customers);
  • FreedomPop Wi-Fi ($5/mo) offers an Android app-based “key” to open unlimited Wi-Fi access to 10 million AT&T, Google, and cable industry hotspots nationwide for calling, texting, and mobile data;
  • Republic Wireless developed its own protocol to properly hand off phone calls between different networks without dropping it. Calling plans range from $5-40 a month. Less expensive plans are Wi-Fi only, pricier plans include access to Sprint’s network;
  • Scratch Wireless charges once for its device – a Motorola Photon Q ($99) and everything else is free, as long as you have access to Wi-Fi. Cell-based texting is also free, as a courtesy. If you need voice calling or wireless data when outside the range of a hotspot, you can buy “access passes” to Sprint’s network at prices ranging from $1.99 a day each for voice and data access to $24.99 a month for unlimited data and $14.99 a month for unlimited voice.
Scratch Wireless

Scratch Wireless

Google is pushing the FCC to open new unlicensed spectrum for expanded Wi-Fi to accommodate the growing number of wireless hotspots that are facing co-interference issues.

Wi-Fi-based wireless providers are likely to grow once coverage concerns are eased and there is reliable service as customers hop from hotspot to hotspot. The cable industry has aggressively deployed Wi-Fi access with a potential to introduce wireless service. Comcast is already providing broadband customers with network gateways that offer built-in guest access to other Comcast customers, with the potential of using a crowdsourced network of customers to power Wi-Fi coverage across its service areas. FreedomPop will eventually seek customers to volunteer access to their home or business networks for fellow users as well.

AT&T and Verizon are banking on their robust networks and coverage areas to protect their customer base. Verizon Wireless, in particular, has refused to engage in price wars with competitors, claiming Verizon customers are willing to pay more to access the company’s huge wireless coverage area. AT&T told the Wall Street Journal its customers want seamless access to its network to stay connected wherever they go.

Verizon’s chief financial officer Fran Shammo appeared unfazed by the recent developments. On last week’s conference call with investors, Shammo dismissed Google’s entry as simply another reseller of Sprint’s network. He added Google has no idea about the challenges it will face dealing directly with customers in a service and support capacity. While Google’s approach to combine the coverage of T-Mobile and Sprint together is a novel idea, Shammo thinks there isn’t much to see.

“Resellers, or people leasing the network from carriers, have been around for 15 years,” Shammo said. “It’s a complex issue.”

Investors are taking a cautious wait-and-see approach to the recent developments. Google’s new offering is likely to offer plans that are philosophically compatible with Google’s larger business agenda. Challenging the traditional business models of AT&T and Verizon that have implemented usage caps and usage pricing may be at the top of Google’s list. The new offering could give large data allowances at a low-cost and/or unlimited wireless data for a flat price. Such plans may actually steal price-sensitive customers away from Sprint and T-Mobile, at least initially. Sprint is clearly worried about that, so it has a built-in escape clause that allows a termination of its network agreement with Google almost at will.

http://www.phillipdampier.com/video/WSJ Google Cablevision Challenge Wireless Industry 1-26-15.flv

The Wall Street Journal talks about the trend towards Wi-Fi based mobile calling networks. (1:59)

Verizon Cutting Wireline Broadband Investments: Still No FiOS Expansion, Less Money for Wired Networks

Verizon's FiOS expansion is still dead.

Verizon’s FiOS expansion is still dead.

Verizon Communications signaled today it plans further cuts in investments for its wireline network, which includes traditional copper-based telephone service and DSL as well as its fiber-optic network FiOS.

“We will spend more CapEx in the wireless side and we will continue to curtail CapEx on the wireline side,” Verizon’s chief financial officer Fran Shammo told investors this morning. “Some of that is because we are getting to the end of our committed build around FiOS.”

Instead of expanding its FiOS fiber to the home network to new areas, Verizon is trying to increase its customer base in areas previously wired. It is less costly to reconnect homes previously wired for FiOS compared with installing fiber where copper wiring still exists.

Verizon continues to lose traditional landline customers, so the company is increasingly dependent on FiOS to boost wired revenue. The fiber network now accounts for 77% of Verizon’s residential wireline revenue.

Wherever FiOS exists, it has taken a significant number of customers away from cable competitors. FiOS Internet has now achieved 41.1% market penetration, with 6.6 million customers, up 544,000 from last year. Of those, the majority want broadband speeds they were not getting from the cable company. At the end of 2014, 59% of FiOS Internet customers subscribe to broadband speeds above 50Mbps, up from 46% at the end of 2013.

Verizon-logoDespite the success of FiOS, Verizon’s senior management continues to devote more attention to its highly profitable Verizon Wireless division, spending an even larger proportion of its total capital investments on wireless services.

In 2014, Verizon spent $17.2 billion on capital expenditures, an increase of 3.5% over 2013. But only $5.8 billion was spent on maintaining and upgrading Verizon’s landline and FiOS networks, down 7.7% over 2013. Verizon Wireless in contrast was given $10.5 billion to spend in 2014. The company is using that money to add network density to its increasingly congested 4G LTE network. In many cities, Verizon Wireless is activating its idle AWS spectrum to share the traffic load and is accelerating deployment of small cell technology and in-building microcells to deal with dense traffic found in a relatively small geographic area — such as in sports stadiums, office buildings, shopping centers, etc.

Verizon Wireless is branding its network expansion “XLTE,” which sounds to the uninitiated like the next generation LTE network. It isn’t. “XLTE” simply refers to areas where expanded LTE bandwidth has been activated. Unfortunately, many Verizon Wireless devices made before 2014 will not benefit, unable to access the extra frequencies XLTE uses.

With Verizon increasing the dividend it pays shareholders, the company is also cutting costs in both its wired and wireless divisions:

  • Verizon Wireless’ 3G data network will see a growing amount of its available spectrum reassigned to 4G data, which is less costly to offer on a per megabyte basis. As Verizon pushes more 4G-capable devices into the market, 3G usage has declined. But the reduced spectrum could lead to speed slowdowns in areas where 3G usage remains constant or does not decline as quickly as Verizon expects;
  • Verizon will push more customers to use “self-service” customer care options instead of walking into a Verizon store or calling customer service;
  • The company will continue to move towards decommissioning its copper wire network, especially in FiOS areas. Existing landline customers are being encouraged to switch to FiOS fiber, even if they have only landline service. Copper maintenance costs are higher than taking care of fiber optic wiring;
  • Verizon has accelerated the closing down of many central switching offices left over from the landline era. As the company sells the buildings and property that used to serve its network, Verizon’s property tax bill decreases;
  • Verizon will continue cutting its employee headcount. Shammo told investors in December, Verizon Communications cut an extra 2,300 employees that took care of its wired networks.

WOW! Boosts Broadband Speeds to 110Mbps in Ohio and Alabama

wowWOW! broadband customers in Ohio and Alabama can now sign up for Internet speeds as high as 110Mbps.

The communities getting the upgrades include parts of Columbus, Oh. and the Alabama cities of Auburn, Valley, Huntsville and Montgomery.

WOW! previously upgraded customers in Chicago, Detroit, part of Columbus and Cleveland, Evansville, Ind., Lawrence, Kan., and Pinellas, Fla.

“We recognize and embrace that consumers are increasingly using their Internet connection to stream video content to multiple devices,” Cathy Kuo, WOW! chief operating officer, said in a statement.

Many of the customers getting this week’s speed boost were former Knology customers. All are now free of usage caps that some used to endure under the systems’ former owners.

WOW! receives top customer approval ratings among cable companies in the United States, in part because it maintains a list of values drummed into employees that are lacking at other cable companies:

  1. Courage: Act on your beliefs with pure intention in spite of your fears.
  2. Respect: Treat others as you wish to be treated.
  3. Integrity: Choose to do what’s right.
  4. Accountability: Own your part of any situation and work towards a solution.
  5. Servanthood: Embrace the attitude and honor of serving others rather than being served.

Most customers can upgrade from the company’s old top-tier of 50/5Mbps to 110/5Mbps for about $13 extra a month.

House and Senate Hold Hearings on GOP Fake Net Neutrality Alternative Supported by Telecom Lobby

Phillip Dampier January 21, 2015 Astroturf, Net Neutrality, Public Policy & Gov't 3 Comments
Thune

Thune

The House and Senate today held back-to-back hearings on the issue of adopting a Republican alternative to the president’s idea of Net Neutrality.

After the president directly addressed his support of strong Net Neutrality protections, FCC chairman Thomas Wheeler indicated he intended to act on the issue next month. Now many Republican legislators have changed their original view that Net Neutrality was “a solution in search of a problem” into a high priority agenda item demanding immediate attention, hoping to cut off Wheeler’s regulatory solution with new legislation.

That came in the form of a proposed new bill to define the principles of Net Neutrality from Sen. John Thune (R-S.D.) and Rep. Fred Upton (R-Mich.).

“By turning the FCC away from a heavy-handed and messy approach to regulating the Internet, this draft protects both consumers who rely on Internet services and innovators who create jobs,” Thune wrote in a statement.

Both hearings were stacked against reclassification of broadband under Title II to assure strong Net Neutrality principles, including three witnesses formerly with the FCC that have moved into industry advocacy jobs.

(Image courtesy: Steve Rhodes)

(Image courtesy: Steve Rhodes)

Former FCC chairman Michael Powell is today America’s top cable lobbyist. Meredith Baker quickly left the FCC in 2011 after voting in favor of the Comcast-NBC merger deal, taking a lucrative position at Comcast before moving on to become the country’s top wireless industry lobbyist. Robert McDowell left the FCC in 2013 to take a job at the same law firm hired by Comcast to successfully challenge the FCC’s authority to fine the cable company over its past speed throttling practices. Today, McDowell’s employer also represents the interests of AT&T and Verizon.

Other witnesses testifying included Dr. Nicol Turner-Lee from the Multicultural, Media, Telecom & Internet Council, which claims to be a civil rights organization but in fact receives the bulk of its funding from corporate interests, including large telecom companies. It often advocates for the corporate agendas of its sponsors, including opposition to Title II reclassification and past support for the failed AT&T-T Mobile merger deal.

Tom Simmons, senior vice president of public policy for small cable operator Midcontinent Communications also appeared, opposing strong Net Neutrality policies. Simmons said that once the company explained Title II reclassification and how it would increase customers’ cable bills, support for Net Neutrality diminished.

Just two witnesses testified on behalf of consumer interests. Gene Kimmelman, president of Public Knowledge strongly advocated for Title II reclassification of broadband and Paul Misener, vice president of Global Public Policy for Amazon.com strongly opposed Internet fast lanes and other traffic manipulation practices.

The New York Times today reported that the Republicans may have an increasingly uphill fight with some of their own traditional supporters to push through legislation Internet activists claim is riddled with company-friendly loopholes.

“The libertarian conservative base is pretty astute at recognizing crony capitalism and understand how campaign finance and corporate influence affects policy,” said David Segal, executive director of Demand Progress, a Net Neutrality advocacy group. “And this is a pretty transparent moment for all that.”

Revolving Door: When Former FCC Commissioner Robert McDowell Speaks, It’s Verizon and AT&T Talking

Phillip Dampier January 20, 2015 Consumer News, Net Neutrality, Public Policy & Gov't No Comments
D.C.'s perpetually revolving door keeps on spinning.

D.C.’s perpetually revolving door keeps on spinning.

A former Republican member of the Federal Communications Commission is calling on the federal agency to stop consideration of strong Net Neutrality rules and defer to a Republican drafted bill that would dramatically weaken Open Internet protections.

Robert McDowell said the FCC should defer to Congress and avoid adopting a “Depression era law designed to regulate phone monopolies” as the foundation for Net Neutrality enforcement.

“While Republicans and Democrats try to work out a deal, FCC Chairman Tom Wheeler should hit the pause button on next month’s vote and let the elected representatives of the American people try to find common ground,” he wrote in a Wall Street Journal op-ed Monday. “At the end of this constitutional process, all sides may be able to claim victory. It’s time to consider a different path — one that leads through Congress — to end the Net Neutrality fiasco. Although the legislative process can be perilous, Congress can provide all sides with a way out.”

McDowell’s comments fall tightly in line with the fierce lobbying campaign against Net Neutrality being run by companies like Comcast and AT&T.

That may not be surprising considering McDowell’s trip through the notorious “D.C. Revolving Door,” where ex-government employees go to work on behalf of the industries they formerly regulated.

McDowell

McDowell

After retiring from the FCC, McDowell landed a position with the law firm Wiley Rein LLP, a corporate favorite for litigation against government oversight and regulatory public policies. It was Wiley Rein LLP that represented Comcast in 2010, successfully arguing the FCC had no right to oversee Comcast’s Internet service under the Section 706 “information service” framework still at issue today.

The D.C. Circuit unanimously ruled, “the Commission failed to tie its assertion of ancillary authority over Comcast’s Internet service to any ‘statutorily mandated responsibility,'” a long-winded way to say that the FCC’s reliance on its limited authority to oversee broadband as an “information service” in reality gave the FCC almost no right of oversight at all.

Ironically, that case is what prompted Internet activists to demand the FCC reclassify broadband as a “telecommunications service” under Title II to give the FCC the authority it needs to oversee broadband providers, exactly what McDowell does not want.

The ruling (emphasis ours):

Turning to ancillary authority, the Court rejected each of the statutory provisions on which the Commission relied.  Relying on a number of Supreme Court precedents, the Court held that “policy statements alone cannot provide the basis for the Commission’s exercise of ancillary authority,” id. at 22, and thus rejected the Commission’s reliance on Section 230(b) and Section 1 of the Communications Act and Section 706 of the Telecommunications Act of 1996.  The Court explained that allowing congressional policy to create “statutorily mandated responsibilities” sufficient to support the exercise of ancillary authority “would virtually free the Commission from its congressional tether.” Id. at 23.  The Court then rejected the remaining statutory provisions that “at least arguably delegate regulatory authority to the Commission,” id. at 16, on a variety of substantive and procedural grounds, including waiver.

Few media sources have bothered to disclose that McDowell’s new employer counts among its current clients two of the biggest Net Neutrality foes in the industry: AT&T and Verizon.

Yes, N.Y. State Regulators Have Delayed Final Consideration of the Comcast-TWC Merger Yet Again

No approval for the Comcast-Time Warner Cable merger proposal in New York for yet another month as the state Public Service Commission has once again delayed making a final decision until the end of February.

“Pursuant to a request from Department of Public Service staff in the above-referenced matter, Comcast Corporation and Time Warner Cable Inc. agree to action by the Public Service Commission on the Joint Petition at a Commission Session held on or by February 26, 2015, with a final order being issued no later than March 3, 2015,” is the word from Comcast and Time Warner Cable’s law firm.

Channeling Pinnochio, NCTA Cable Lobby Launches “The Infinite Internet” (They Want to Usage Cap)

pinnocThe National Cable & Telecommunications Association (NCTA), the nation’s largest cable lobbying group, has outdone itself with a brand new fact-challenged video truth-seekers will quickly discover is little more than industry propaganda.

“For nearly 20 years, cable has been building Internet networks that are empowering everyone from innovators and entrepreneurs to kids in the garage,” says the NCTA in its introduction of its new video “The Infinite Internet.” “The Internet propels business, education, entertainment – whatever we want. It’s a platform of possibilities and the fast growing technology in history. Cable is proud of the part we’ve played in advancing America’s future and we’ll continue to make it faster and more accessible.”

Except many NCTA member companies want to introduce usage caps and consumption billing that limit those possibilities on an already absurdly profitable service. The same broadband duopoly of cable and phone companies also holds America’s broadband rankings back, and has demonstrated its real priority is to charge more money for less service.

We’ve reviewed the video and found credibility problems with almost every claim:

Claim: “America’s ISPs have invested trillions of dollars and laid 400,000 miles of fiber optics.”

Our finding: FIB Even industry mouthpieces like the Progressive Policy Institute and NCTA members themselves have a problem with “trillions.” The chief executives of AT&T, Bright House Networks, Cablevision, CenturyLink, Charter, Comcast, Cox, Frontier, Suddenlink, Time Warner Cable, 15 other companies, and industry groups such as the National Cable & Telecommunications Association itself, the Telecommunications Industry Association, and the CTIA Wireless Association claimed in the spring of 2014 that the entire telecommunications industry (not cable alone) spent a combined $1.2 trillion on communications infrastructure. A considerable percentage of that investment was to build out cellular networks, first for mobile phone calls and only later for wireless data. The cable industry spent far less than $1 trillion on its own infrastructure and at the time of its most rapid growth, it was intended primarily to deliver cable television, not broadband.

Stop the Cap! also found the NCTA cheating in its claims of increasing investment in broadband. The trade group was citing cumulative spending, not actual year-to-year spending. A careful review shows broadband investments are generally flat or in decline and are nowhere near comparable to the investments the industry made in the late 1990s.

Although it may be true the cable industry has deployed 400,000 miles of fiber optics, the overwhelming majority of cable customers cannot directly access any of it. Virtually all the cable industry’s fiber is deployed between the company’s headquarters and individual communities where it is connected to the same coaxial cable platform that has been around since the 1960s. Most of the rest is laid for commercial purposes, notably providing backhaul connectivity for cell towers. Time Warner Cable alone deployed fiber to its 10,000th cell tower back in 2013. It’s a lucrative business, earning that cable company more than $61 million a quarter.

BroadbandNow found no cable company appearing on the list of top fiber broadband providers. In fact, as of 2012 only 23% of Americans have access to fiber broadband ranking the United States 14th among western countries in fiber optic penetration according to the OECD.

Claim: “High speed connections reach nearly every home with blazing fast speeds that power our lives.”

Our finding: HIGHLY MISLEADING The NCTA fails to define its terms here. What exactly constitutes a “high-speed connection.” The FCC currently defines broadband as providing speeds of 4Mbps or better. Is that “blazing fast?” The FCC is currently considering redefining broadband to mean speeds of at least 25Mbps, well below many cable company entry-level broadband tiers. The NCTA also likes to claim that 99% of households have access to high-speed Internet, but they include wireless technology at any speed in those figures. If you can get one bar from AT&T’s 3G wireless Internet network, you’ve got high-speed broadband in their eyes.

In fact, when it comes to stingy coverage areas, cable is notoriously not available outside of the biggest cities and suburbs, as the government’s own National Broadband Map depicts:

Map showing cable companies offering at least DOCSIS 3.0 cable broadband service.

Map showing cable companies offering at least DOCSIS 3.0 cable broadband service.

Claim: “ISP’s want access for everyone.”

Our finding: TRUE, WITH MISSING FINE PRINT What company would not want to offer its products and services to everyone. The real question is whether they plan on doing that or simply wishing they had. The cable industry has no intention of implementing sweeping changes to the Return On Investment (ROI) formula that determines whether your home gets access to cable or not. Some companies like Time Warner Cable and Frontier Communications are expanding their cable and DSL networks, but only when the government steps in with broadband deployment grant funding.

Assuming service is available, the next hurdle is cost. BBC News reported in 2013 home broadband in the U.S. costs far more than elsewhere. At high speeds, it costs nearly three times as much as in the UK and France, and more than five times as much as in South Korea. Today it costs even more when you count the growing number of providers charging modem rental fees as high as $10 a month and often cap usage or force customers into usage-based billing schemes.

Claim: “With over 300,000 public Wi-Fi hotspots, the Internet of Things is emerging.”

Cox Cable sells their customers on accessing over 300,000 Wi-Fi hotspots, with a prominent asterisk.

Cox Cable sells their customers on accessing over 300,000 Wi-Fi hotspots, with a prominent asterisk. Access is only available for free if you are a current cable broadband customer.

Our finding: MISLEADING The NCTA is referring to collaboration between Bright House Networks, Cox Communications, Optimum, Time Warner Cable and XFINITY that allow each other’s high-speed Internet customers to use to each company’s Wi-Fi hotspots. They key word is “customers.” The hotspots may be technically reachable by the public, but unless you are a current cable broadband subscriber, using them typically requires the purchase of a daily use pass.

Claim: “Cable will continue to invest, building this platform of possibilities, if we preserve the freedom that created the Internet.”

Our finding: EMPTY CLAIMS The NCTA’s commitment that the cable industry will continue to invest is fulfilled if one cable operator spends just $1 on their network infrastructure. Notice the NCTA does not commit its members to stopping the ongoing decline in broadband investment, much less move to increase it. It also has no explanation for the annual rate increases and new fees and surcharges customers are paying, as the gap between broadband pricing abroad and at home grows even larger. 

“Preserve the freedom” is code language for maintaining the deregulation that the industry has used to its advantage to raise prices in a broadband market most Americans will find is either a monopoly or duopoly. Although the NCTA implies it, the cable industry did not create the Internet. It was a government project (gasp!) initially developed through contracts with the Department of Defense and soon broadened to include educational institutions. The first significant commercial ISPs emerged only in the late 1980s. Cable industry broadband finally showed up around a decade after that. The industry’s claims are akin to boasting Lewis and Clark discovered Kansas City… in 1966.

If the cable industry gets some oversight of its broadband service and enforced protection of Net Neutrality, does that mean investment will flee? First, providers are already spending a lower percentage of capital on broadband expansion in the current deregulatory environment. Second, as broadband becomes the cable industry’s top earner, it provides an endless supply of revenue without the headaches of negotiating programming contracts, dealing with cable television network rate increases, and the growing phenomenon of cord-cutting. In other words, without significant new competition, it remains a license to print money.

http://www.phillipdampier.com/video/NCTA The Infinite Internet 1-20-15.mp4

The NCTA is trying to make hay with its new video, “The Infinite Internet” which purports to share how Big Cable’s vision of the Internet is making new things possible. They don’t mention many of their member companies want to place a usage cap on that innovation, even as they continue to raise prices way out of proportion of the cost of delivering the service. It’s classic cable industry propaganda. (1:08)

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