Russia’s Telecom Giant Rostelecom Refocusing Investment on Broadband Expansion

Phillip Dampier December 31, 2012 Competition, Public Policy & Gov't 1 Comment

logo-rostelecom_en-newRussian state-controlled telecom operator Rostelecom has announced it is refocusing most of its capital investment on broadband expansion, after the Russian government called on providers to build out Russia’s broadband infrastructure.

At least 60 percent of the company’s investment from 2013-2017 will directly target improved broadband. The company previously emphasized expansion of its mobile wireless division, a highly-criticized decision on the part of Russian officials who consider the country’s cell services already highly competitive and sufficient. Five major cell companies compete in Russia: MTS, MegaFon, Vimpelcom, Tele2 and Rostelecom — the smallest of the five.

Broadband expansion is key for Russia’s economic growth and private market development. Rostelecom maintained a landline monopoly until it merged with several regional operators and today competes among private rivals in the telecom business. Rebuilding and expanding its network is deemed critical to its long term survival.

But the current management of Rostelecom may have fallen out favor with the Kremlin.

Reuters reports Rostelecom CEO Alexander Provotorov may be headed for an early exit after state investigators searched his home in an unrelated fraud probe.

The government is expected to sell off its remaining interest in Rostelecom by 2015 after a restructuring of the government’s telecom assets is complete.

95% of Vermont Has Access to Broadband; 100% May Have It in 2013

VTA_logoAt least 95 percent of Vermont residents will have access to broadband by the end of today, because of a combination of private investment, public funding, and innovative service solutions for some of the state’s most rural areas.

State officials say 2012 was an important year for broadband availability in Vermont, as dominant phone company FairPoint Communications made inroads in expanding its DSL service in areas that never had access before.

In 2011, Governor Shumlin set an ambitious goal to see 100 percent of Vermont covered by broadband by the end of 2013, and the state appears on track to achieve that target in the coming year.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Ask The Governor Broadband 2-3-11.flv[/flv]

Gov. Shumlin answered questions from state residents regarding his plan to see 100% broadband coverage in Vermont by the end of 2013. (Feb. 3 2011) (3 minutes)

Vermont’s small size would seem to make it an easy target for total broadband coverage, but significant rural areas have made it unprofitable for commercial phone and cable companies to make inroads.

Comcast, the state’s largest cable operator, has not grown much geographically over the past five years. FairPoint, which took control of much of the state’s landline network from Verizon in 2008, has been compelled to achieve broadband expansion as part of an agreement that approved the sale.

logo-broadbandVTKaren Marshall, who heads a state effort to expand both cell phone and broadband access in Vermont says the remaining areas without coverage will be a difficult challenge, but one that can be achieved with the help of private and public investment.

“The last 5 percent are the needle in the haystack,” Marshall told Vermont Public Radio. “They are the most far-flung, probably the most expensive and sometimes even the most physically challenging to get to.”

Wireless is often the most cost-effective solution, both for broadband and cell expansion, and Marshall suggested Vermont would use microcell technology along Vermont’s rural roadways.

“I think we will be one of the first places in the country that is deploying microcell technology for example, on the top of telephone poles or utility poles, kind of like a daisy chain,” Marshall said.

The rural Vermont Telephone Company won a $5 million state grant to cover Vermont’s southernmost counties with a combination of wireless phone and broadband service.

While areas of rural Vermont will likely have broadband access for the first time, improvements have also been available to those who already have the service.

Marshall estimated the average broadband speed in the state has increased from 5.5 to 9.7Mbps, which is above the national average.

Vermont Public Radio surveys how the state is doing meeting Gov. Shumlin’s goal to see broadband service available to every Vermonter. (December 28, 2012) (2 minutes)
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Telecom Company-Influenced Broadband Availability Map Hurts Mississippi Broadband Expansion

Phillip Dampier December 27, 2012 Community Networks, Competition, Public Policy & Gov't, Rural Broadband, Video, Wireless Broadband Comments Off on Telecom Company-Influenced Broadband Availability Map Hurts Mississippi Broadband Expansion
This FCC broadband coverage map depicts broadband service gaps in orange.

This FCC broadband coverage map depicts broadband service gaps in orange.

According to broadband coverage maps drawn from data provided by telecommunications companies across Mississippi, high speed Internet service is available just about everywhere in the state.

Only it isn’t.

Now one Public Service Commissioner is going public warning broadband expansion funding is in jeopardy because the Federal Communications Commission is relying on faulty map data.

Northern District Commissioner Brandon Presley told the DeSoto Times-Tribune things are not nearly as rosy as some providers would have you believe.

“The maps the FCC have are just plain wrong,” Presley said. “Their maps show that Mississippi is almost completely covered and that is certainly not the case. Getting this corrected is a top priority so that Mississippi can get its fair share of funding to cover these areas for residents and businesses.”

The implications for DeSoto County, Mississippi’s fastest growing county, are profound.

Thanks to map data volunteered by service providers that suggest virtually the entire state already has access to broadband, federal assistance funding for expanding Internet access may be off-limits. Most assistance programs require that areas be unserved to avoid duplicating existing service.

“Currently, the map vastly overstates the broadband coverage in the state,” Presley said. “While the map shows neighboring states with extensive underserved areas, Mississippi appears with nearly universal coverage.”

The FCC’s map of unserved areas depicts Mississippi as a broadband outlier in the southern United States, with far more service options than other nearby southern states. Digging deeper reveals major problems with the FCC’s data.

For instance, the state’s map reveals much of Mississippi is covered by wireless providers like AT&T, C-Spire, and Verizon. But those companies offer only limited data plans at high prices that are not equivalent to traditional wired broadband from a cable or phone company. A company called Callis Communications is depicted as providing a large part of the state with DOCSIS 3 cable modem service, when in fact Callis markets cloud-services to business customers and does not operate a cable company.

Most of Mississippi’s broadband connections from cable companies and AT&T are in larger communities including Tupelo, Jackson, Meridian, Gulfport, Hattiesburg and Biloxi. That leaves large sections of central and western Mississippi with significant service gaps.

Presley said his office is working to correct the FCC’s National Broadband Map, but with federal spending cutbacks looming, it may already be too late.

“Without this assistance, rural communities will continue to be left behind as small businesses, health care and emergency services will be left without necessary access to the Internet,” Presley told the newspaper.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/WLOX Biloxi Broadband map could cost the state millions 12-21-12.mp4[/flv]

WLOX in Biloxi reports Mississippi officials are scrambling to correct faulty broadband map data with the FCC so the state can qualify for broadband expansion funding.  (2 minutes)

Hope You Like Sports: You Pay Whether You Watch or Not

Phillip Dampier December 27, 2012 Consumer News, Video 4 Comments

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Bloomberg Hope You Like Sports You are Paying for Them 12-17-12.flv[/flv]

Bloomberg TV investigates how much those sports channels are costing you as part of your monthly cable bill. The surprising answer: many times more than America’s most familiar basic cable networks.  (1 minute)

Analyst Declares Cable Customers Will Pay $50/Month Of Their Cable Bill for Sports in 2013

Phillip Dampier December 27, 2012 Consumer News, Video Comments Off on Analyst Declares Cable Customers Will Pay $50/Month Of Their Cable Bill for Sports in 2013

sharing costs of sports

The largest share of your cable bill in 2013 will go to cover just one genre of television programming: sports.

Leo Hindery, Intermedia’s managing partner, claims $50 of your monthly cable bill will cover networks like ESPN, YES, NFL Network, and a wide range of national and regional sports networks, whether you watch them or not.

Appearing on Bloomberg TV’s “Bloomberg Surveillance,” Hindery says there is no end in sight for sports programming-related rate hikes. They have increased 16% in just the past two years.

Hindery noted in the beginning sports cable networks largely covered national, pro teams. But the newest wave of networks cover collegiate sports, at prices nearly as high as ESPN charges its cable affiliates. With just about every major sport now sporting its own cable network, the possibilities and the accompanying rate increases are endless.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Bloomberg Hindery Cable Sports Fees 50 Per Month in 2013 12-20-12.flv[/flv]

“Next year, we will pay directly or indirectly something on the average of $50 [a month] for sports which we didn’t ask for,” Hindery said. “It’s not a-la-carte, it is part of the bundle.”  (4 minutes)

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