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Altice Dismisses Wireless Broadband as Inadequate, “There is No Substitute” for Wired

Goei

While Wall Street and the tech media seems excited about the prospect of 5G and other fixed wireless home broadband services, Altice, which owns Cablevision and Suddenlink, dismissed wireless broadband as inadequate to meet rapidly growing broadband usage.

“In terms of usage patterns, our customers are taking an average download speed of 162 Mbps as of the second quarter of 2018, which is up 74% year-over-year,” Dexter Goei, CEO of Altice USA told investors on a recent conference call. “[Our customers now use] over 220 GB of data per month, which is up 20% year-over-year, with 10 in-home connected devices, on average. If you take the top 10% of our highest data consuming customers as a leading indicator, they are using, on average, almost 1 terabyte of data per month with 26 in-home connected devices. To support these usage patterns, which are mainly driven by video streaming and the proliferation of new over-the-top [streaming] services, it requires a high quality fixed network like ours. There is no substitute.”

Goei argued America’s wireless carriers are not positioned to offer a credible, serious home broadband alternative.

“For example, so-called unlimited data plans from the U.S. mobile operators start capping or significantly throttling customers at 20 GB of usage per month,” Goei said. “Over 60% of our customers are now using over 100 GB of data per month right now, which the mobile operators do not and will not have the capacity to match on a scaled basis unless they overbuild with a new dense fiber network.”

Altice just so happens to be building a dense fiber network, scrapping Cablevision’s remaining coaxial cable in New York, New Jersey, and Connecticut in favor of a fiber-to-the-home network that will eventually reach all of its customers.

Tennessee’s “Smoke and Mirrors” Rural Broadband Initiatives Fail to Deliver

Rural Roane County, Tenn.

Earlier this month, a standing room only crowd packed the offices of Rockwood Electric Utility (REU) in Rockwood, Tenn., despite the fact the meeting was held at 10 a.m. on a Friday morning.

Local residents were there on a work day to listen to area providers and local officials discuss rural broadband access. Most wanted to know exactly when the local phone or cable company planned to expand to bring internet access to the far corners of the region between Knoxville and Chattanooga in east Tennessee.

Comcast, Charter, and AT&T told Roane County Commissioners Ron Berry and Darryl Meadows, State Sen. Ken Yager (R-Kingston), and the crowd they all had a long wait because the companies couldn’t profit offering rural broadband service to the county.

“That is what our shareholders expect and the way we operate in a capitalistic society,” declared Andy Macke, vice president of external affairs at Comcast.

“The biggest challenge for all of you in this room is what they call the last mile,” said Alan L. Hill, the regional director of external and legislative affairs at AT&T Tennessee. “It is a challenge. We all face these challenges.”

In short, nothing much had changed in Roane County, or other rural counties in southeastern Tennessee, to convince service providers to spend money to bring internet service to the region. Until that changed, AT&T, Comcast and others should not be expected to be on the front lines addressing rural internet access. Successive governors of Tennessee have long complained about the rural broadband problem, but the state legislature remains cool to the idea of the state government intervening to help resolve it.

Gov. Haslam

In 2017, Tennessee Gov. Bill Haslam noted Tennessee currently ranked 29th in the U.S. for broadband access, with 34 percent of rural Tennessee residents lacking access at recognized minimum standards. In splashy news releases and media events, Haslam sold his solution to the problem — the Broadband Accessibility Act, offering up to $45 million over three years to assist making broadband available to unserved homes and businesses.

In reality, the law authorized spending no more than $9.5 million annually on rural broadband grants over the next three years. It also slashed the FCC’s broadband standard from 25/3 Mbps to 10/1 Mbps, presumably a gift to the phone companies who prefer to offer less-capable DSL service in rural areas. In the first year of awards, 13 Tennessee counties, none in the southeastern region where Roane County lies, divided the money, diluting the impact to almost homeopathic strength.

Critics called Haslam’s broadband improvement program “The Smoke and Mirrors Act” for promising a lot and delivering little. At current funding levels, broadband service can only be expanded to 5,000 of the estimated 422,000 households that lack access to internet service, and then only with the award winner’s matching financial contribution.

The demand for rural broadband financial assistance is obvious from the $66 million in requests received from 71 different utilities, co-ops, and communications companies in the first year of the program, all seeking state funding to expand rural broadband. Only a small fraction of those requests were approved. AT&T applied for money targeting Roane County and was turned down. AT&T’s Hill expressed sympathy for the county’s school children who need to complete homework assignments by borrowing Wi-Fi access from fast food establishments, area businesses, and larger libraries. But AT&T’s sympathy will not solve Roane County’s broadband problems.

What might is Rockwood Electric Utility, the municipal power company that sponsored the broadband event.

REU is a not-for-profit, municipally owned utility that has successfully served portions of Roane, Cumberland, and Morgan counties since 1939. By itself, the community-owned utility is no threat to companies like Comcast, because it offers service in places the cable company won’t. But if REU partnered with other municipal providers and offered internet service in larger nearby towns and communities to achieve economy of scale and a more secure financial position, that is a competitive threat apparently so perilous that the telecom industry spent millions of lobbying dollars on state legislatures like the one in Tennessee to ghost-write legislation to discourage utilities like REU from getting into the broadband business, much less dare to compete directly with them. AT&T, Charter, and Comcast also fear how they will compete against municipal utilities that have successfully delivered electric service and maintained an excellent reputation in the community for decades.

Tennessee law is decidedly stacked in favor of AT&T, Charter, and Comcast and against municipal utilities. Although the state allows municipal providers to supply broadband, it can come only after satisfying a series of regulatory rules designed to protect commercial cable and phone companies. It also prohibits municipal providers from offering service outside of existing service areas. That leaves communities served by a for-profit, investor-owned utility out of luck, as well as residents in areas where a rural utility lacked adequate resources to supply broadband service on its own.

Haslam’s Broadband Accessibility Act cynically retained these restrictions and blockades, hampering the rural broadband expansion the law was supposed to address.

For several years, Sen. Janice Bowling (R-Coffee, Franklin, Grundy, Marion, Sequatchie, Van Buren and Warren Counties), has tried to cut one section of Tennessee’s broadband-related laws that prohibits municipal providers from offering service outside of their existing utility service area. Her proposed legislation would authorize municipalities to provide telecommunication service, including broadband service, either on its own or by joint venture or other business relationship with one or more third parties and in geographical areas that are inside and outside the electric plant’s service area.

In her sprawling State Senate District 16, a municipal provider already offers fiber broadband service, but Tennessee’s current protectionist laws prohibit LightTUBe from offering service to nearby towns where service is absent or severely lacking. That has left homes and businesses in her district at a major disadvantage economically.

Sen. Janice Bowling (R-Tenn.) discusses rural broadband challenges in her 16th district south of Nashville and her bill to help municipal utilities provide broadband service. (4:20)

“In rural Tennessee, if we have what is called an industrial park, and we have electricity, you have running water, you have some paved roads, but if you do not have access to fiber at this point, what you have is an electrified cow pasture with running water and walking trails. It is not an industrial park,” she complained, noting that the only reason her bill is prevented from becoming law is lobbying by the state’s cable and phone companies. “We can no longer leave the people of Tennessee hostage to profit margins of large corporations. We appreciate what they’re doing. We appreciate where they do it, but in rural Tennessee we will never meet their profit margins and so we can no longer be held hostage when we have the ability to help ourselves.”

Sen. Yager

Her sentiment in shared by many other Tennessee legislators who serve rural districts, and her Senate bill (and House companion bill) routinely receive little, if any, public opposition. But private lobbying by telecom industry lobbyists makes sure the bill never reaches the governor’s desk, usually dying in an obscure committee unlikely to attract media attention.

That reality is why residents of Roane County were meeting in a crowded room to get answers about why broadband still remained elusive after several years, despite the high-profile attention it seems to get in the legislature and governor’s office.

“‘It is a critical issue as I said. It is not a luxury. It is a necessity. I certainly understand your frustration,” responded Sen. Ken Yager. “This problem is so big I don’t think one person can do it alone, one entity. It’s going to have to have partnerships. One thing this bill encourages is for your co-ops to partner with one another to bring broadband in.”

The bill Sen. Yager refers to and endorsed at the meeting was written by Sen. Bowling. Sen. Yager must be very familiar with Bowling’s proposals, because she has appeared before the Senate Commerce & Labor Committee he belongs to year after year to promote it. On March 3, 2018, the bill failed again in a 4-3 vote. But unbeknownst to those in attendance at the public meeting, Sen. Yager himself delivered the fourth “no” vote that killed the bill.

Undeterred, Bowling promises to be back next year with the same bill language as before. Perhaps next time, voters will know who their friends are in the legislature, and who actually represents the interests of big corporate cable and phone companies.

Australia’s National Broadband Network Looking for Scapegoats Over Maddening Slowdowns

Australia’s speed-challenged NBN is looking for scapegoats and finds video game players an easy target.

In 2009, Australia’s Labor Party proposed scrapping the country’s copper wire networks and replacing virtually all of it with a state-of-the-art, public fiber to the home service in cities from Perth to the west to Brisbane in the east, with the sparsely populated north and central portions of the country served by satellite-based or wireless internet.

It was a revolutionary transformation of the country’s challenged broadband networks, which had been heavily usage capped and speed throttled for years, and for large sections of the country stuck using Telstra’s DSL service, terribly slow.

The National Broadband Network concept was immediately attacked by the political opposition as too expensive and unnecessary. Conservative demagogues in the media and in Parliament dismissed the concept as a Cadillac network delivering unnecessarily fast 100 Mbps connections to 90% of Australians that would, in reality, mostly benefit internet addicts while leaving older taxpayers to foot the estimated $43AUS billion dollar bill for the network.

The leaders of the center-right Liberal Party of Australia promised in 2010 to “demolish” the NBN if elected, claiming the network was too costly and would take too long to build. As network construction got underway, the organized attacks on the NBN intensified, and it was a significant issue in the 2013 election that defeated the Labor government and put the conservative government of Tony Abbott into power. Almost immediately, most of the governing board of the NBN was asked to resign and in a series of cost-saving maneuvers, the government canceled plans for a nationwide fiber-to-the-home network. In its place, Abbott and his colleagues promoted a cheaper fiber to the neighborhood network similar to AT&T’s U-verse. Fiber would be run to neighborhood cabinets, where it would connect with the country’s existing copper wire telephone service to each customer’s home.

Abbott

Unfortunately, the revised NBN implemented by the Abbott government appears to be delivering a network that is already increasingly obsolete. Long gone is the goal for ubiquitous 100 Mbps. For Senator Mitch Fifield, who also happens to be the minister for communications in the Liberal government, 25 Mbps is all the speed Australians will ever need.

“Given the choice, Australians have shown that 100 Mbps speeds are not as important to them as keeping monthly internet bills affordable, when the services they are using typically don’t require those speeds,” Fifield wrote in an opinion piece in response to an American journalist complaining about how slow Australian broadband was while reporting from the country.

The standard of “fast enough” for Senator Fifield also seems to be the minimum speed at which Netflix performs well, an important distinction for the growing number of Australians watching streaming television shows and movies.

Unfortunately for Fifield, network speeds are declining as Australians use the NBN as it was intended. While perhaps adequate for a network designed and built for 2010 internet users, data usage has grown considerably over the last eight years, and the government’s effort to keep the network’s costs down are coming back to haunt all involved. Several design changes have erased much of the savings the Abbott government envisioned would come from dumping a straight fiber network in favor of cheaper alternatives.

Right now, depending on one’s address, urban Australians will get one of four different fiber flavors the revised NBN depends on to deliver service:

  • Fiber to the Home (FTTH): the most capable network that delivers a fiber connection straight into your home.
  • Fiber to the Neighborhood (FTTN): a less capable network using fiber into neighborhoods which connects with your existing copper wire phone line to deliver service to your home.
  • Fiber to the Basement (FTTB): Fiber is installed in multi-dwelling units like apartments or condos, which connects to the building’s existing copper wire or ethernet network to your unit.
  • Fiber to the Distribution Point (FTTDP): Fiber is strung all the way to your front or back yard, where it connects with the existing copper wire drop line into your home.

In suburban and rural areas, the NBN is depending on tremendously over-hyped satellite internet access or fixed wireless internet. Customers were told wireless speeds from either technology would be comparable to some flavors of fiber, which turned out to be true assuming only one or two users were connected at a time. Instead, speeds dramatically drop in the evenings and on weekends when customers attempt to share the neighborhood’s wireless internet connection.

Instead of improving the wireless network, or scrapping it in favor of a wired/fiber alternative, the government has set on so-called “heavy users” and blamed them for effectively sabotaging the network.

Morrow

NBN CEO Bill Morrow recently appeared before a parliamentary committee to discuss reported problems with how the NBN was being rolled out in regional Australia. Morrow blamed increasing data usage for the wireless network’s difficulties, singling out slacker video game addicts for most of the trouble, and was considering implementing speed throttles on “extreme users” during peak usage periods.

Stephen Jones, Labor’s spokesperson for regional communications, questioned Morrow on what exactly an “extreme user” was.

“It’s gamers predominantly, on fixed wireless,” said Morrow. “While people are gaming it is a high bandwidth requirement that is a steady streaming process,” he said.

Morrow suggested a “fair-use policy” of speed throttles might be effective at stopping the gamers from allegedly hogging the network.

“I said there were super-users out there consuming terabytes of data and the question is should we actually groom those down? It’s a consideration,” he said. “This is where you can do things, to where you can traffic shape – where you say, ‘no, no, no, we can only offer you service when you’re not impacting somebody else’.”

The NBN itself has regularly dismissed claims that online gamers are data hogs. In an article written by the NBN itself, it stressed gameplay was not a significant stress on broadband networks.

“Believe it or not, some of the biggest online games use very little data while you’re playing compared to streaming HD video or even high-fidelity audio,” the article stated. “Where streaming 4K video can use as much as 7 gigabytes per hour and high-quality audio streaming gets up to around 125 megabytes per hour, (but usually sits at around half that) certain online games use as little as 10MB per hour.”

The article admits a very small percentage of games are exceptions, capable of chewing through up to 1 GB per hour, but that is still seven times less than a typical 4K streaming video.

In fact, the NBN’s own data acknowledged in March 2017 that high-definition streaming video was solely responsible for the biggest spike in demand. NBN data showed the average household connected to the NBN used 32% more data than the year before. When Netflix Australia premiered in March 2015, overall usage grew 22% in the first month.

So why did Morrow scapegoat gamers for network slowdowns? It’s politically palatable.

“They always have someone to blame for why the NBN doesn’t deliver, they have every excuse except the one that really matters, which is the flawed technology,” said the former CEO of Internet Australia Laurie Patton. “In this case for some reason shooting from the hip [Bill Morrow] had a go at gamers and gamers are not the problem.”

As long as Australia continues to embrace a network platform that is not adequate robust to cope with increasing demands from users, slow speeds and internet traffic jams will only increase over time. In retrospect, the decision to scrap the original fiber to the home network to save money appears to be penny wise, pound foolish.

Comcast Dumps Congestion Management System It Says Was Unused for a Year

Image courtesy: cobalt123Comcast has quietly dropped its internet congestion management system, designed to slow down its heaviest users, claiming it has gone unused for more than a year and was no longer needed.

Originally spotted by readers of DSL Reports, the announcement referenced the system that replaced Comcast’s speed throttle that intentionally degraded peer-to-peer network traffic after Comcast claimed it was unfairly impacting its other customers:

As reflected in a June 11, 2018 update to our XFINITY Internet Broadband Disclosures, the congestion management system that was initially deployed in 2008 has been deactivated. As our network technologies and usage of the network continue to evolve, we reserve the right to implement a new congestion management system if necessary in the performance of reasonable network management and in order to maintain a good broadband Internet access service experience for our customers, and will provide updates here as well as other locations if a new system is implemented.

Comcast’s “protocol-agnostic” network management technology, designed by Sandvine and introduced in 2008, measured customer traffic and singled out heavy users for speed reductions when Comcast’s network was saturated with traffic. Customers were unaware if they were deemed heavy users or if their traffic was targeted for temporary speed reductions. Comcast relied on the technology, along with the introduction of a 250 GB nationwide data cap, to control network traffic and stall the need for expensive node-split upgrades.

Comcast claims the introduction of DOCSIS 3.0 (starting in late 2008) and DOCSIS 3.1 (2017) gradually eliminated the need to maintain the congestion management system, because channel bonding vastly expanded available internet bandwidth. What remains in place in most Comcast service areas is Comcast’s controversial 1 TB usage cap. The company initially claimed its data caps were part of a network traffic management strategy, but more recently the company claims it collects more from heavy users to compensate for its broadband investments.

Data-Capping Comcast Forecasts “Tremendous Amount of Consumption” Growth in Broadband Usage

Usage caps for one and all.

Comcast, which insists on placing a 1 TB (1,000 GB) usage cap on most (but not all) of its broadband customers, is predicting explosive growth in broadband usage as customers connect more devices to their internet connections.

“[If] you look at in terms of just overall consumption, just at a high level, you look at the top 10% of our customers, just how much they use, they are using 20 or more connected devices,” said Comcast Cable president and CEO David N. Watson on a company conference call. “And it’s a tremendous amount of consumption that we have. And I think that’s where the market is going. There is going to be more consumption, more connected devices.”

Comcast’s growth forecasts suggest the company schedules regular network upgrades, although it has only adjusted usage allowances three times in the last decade:

  • Comcast introduced a 250 GB usage cap in 2008 that carried no overlimit penalty but persistent violators lost their Comcast broadband service.
  • Comcast raised the cap 300 GB in 2013 and implemented an overlimit fee.
  • Comcast raised the cap to 1 TB in 2016 and began promoting its Unlimited Data Option as an insurance policy against bill shock from overlimit fees.

“It is important to know that more than 99 percent of our customers do not use a terabyte of data and are not likely to be impacted by this plan, so they can continue to stream, surf, and download without worry,” claims Comcast on its website. As of December, 2017, “Xfinity Internet customers’ median monthly data usage was 131 GB per month during the past six months.”

Such claims should make customers wonder why Comcast needs a usage allowance of any kind if these claims are true. A 2016 study suggests Comcast may have more heavy users than it is willing to admit. The research firm iGR found average broadband usage that year was already at 190 GB and rising. There is no third-party verification of providers’ usage statistics or usage measurement tools, but there are public statements from Comcast officials that suggest the company faces a predictable upgrade cycle to deal with rising usage.

“We increase the capacity every 18 to 24 months,” confirmed Watson.

Upgrading is also a crucial part of Comcast’s ability to charge premium prices for its internet service.

“Not all broadband networks are created equal,” Watson said. “If you are providing a better solution in broadband, your pricing can reflect that.”

For Comcast customers using a terabyte or more in a month, after two courtesy months of penalty fees being waived, Comcast will recommend signing up for its Unlimited Data Option, which costs $50 a month. If you do not enroll and exceed your allowance a third time, the company will bill you overlimit fees: $10 for each additional block of 50 GB of usage. The maximum overlimit penalty in any single month is a whopping $200.

Critics of Comcast’s data caps point out that Charter — the nation’s second largest cable operator, has no usage caps at all. Optimum (Altice) also does not impose data caps. Those that do often copy Comcast’s data allowances and overlimit fees exactly — all to deal with so-called “data hogs” that the companies themselves claim represent fewer than 1% of subscribers.

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