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VP Biden Announces Broadband-Challenged Rochester, N.Y. Home to National Photonics Institute

Vice president Biden

Vice President Biden in Rochester, N.Y.

Vice President Joe Biden and New York Gov. Andrew Cuomo today announced Rochester, N.Y., a city notorious for its slow broadband, will be the home of the $600 million Integrated Photonics Institute for Manufacturing Innovation, a hub supporting the development of photonics — technology that powers everything from fiber optic broadband to laser surgery.

Rochester, the home of dramatically downsized household names like Eastman Kodak, Xerox, and Bausch and Lomb, could see thousands of new high technology jobs created in the western New York city to develop new products and services that depend on light waves.

“The innovation and jobs this institute will create will be a game changer for Rochester and the entire state,” said U.S. Rep. Louise Slaughter, (D-Rochester). “This is a huge win that will shape our region’s economy for decades to come.”

Slaughter reportedly spent three years working to bring the center to Rochester and helped secure $110 million from the Defense Department and another $500 million in state and private sector funding to finance its development. The project could prove transformational for a community ravaged by downsizing, most dramatically exemplified by Eastman Kodak, which had 62,000 workers in Rochester during the 1980s but employs fewer than 2,500 today.

Today, Rochester’s largest employers are no longer manufacturers. Health care service providers now lead the way, including the University of Rochester Medical Center/Strong Health (#1) and the Rochester General Health System (#3). Upscale grocery chain Wegmans calls Rochester home and is the community’s second largest employer. The bureaucracies that power the Rochester City School District and Monroe County Government are also among the area’s top-10 employers.

rochesterDespite the job shifts, the fact 24,000 workers in the region are already employed in photonics-related jobs may have been a deciding factor in selecting Rochester for the center.

“The photonics center we are now bringing to Rochester will harness the power of the Defense Department and the prowess of Rochester’s 24,000 employee-strong photonics industry and focus it like a laser beam to launch new industries, technologies and jobs,” Sen. Charles Schumer (D-N.Y.) said in a statement.

Employers, small business start-ups and workers moving into the region are likely to be considerably less impressed by Rochester’s incumbent telecommunications service providers. Although institutional and large commercial fiber networks are available to those with deep pockets, with the exception of Greenlight Networks, a local fiber to the home retail overbuilder providing fast gigabit fiber Internet to a tiny percentage of local residents, the area’s fiber future remains bleak.

Time Warner Cable, by far the largest Internet provider in the region, has left Rochester off its Maxx upgrade list, leaving the city with a maximum of 50/5Mbps Internet speed. Frontier Communications still relies on 1990s era DSL service and the anemic speeds it delivers, evident from the company’s poor average speed ranking — 11.47Mbps — less than half the minimum 25Mbps the FCC considers broadband.

Rochester is hardly a broadband speed leader in New York State, only managing to score in 332nd place. (Image: Ookla)

Rochester is hardly a broadband speed leader in New York State, only managing to score in 332nd place. (Image: Ookla)

The performance of the two providers has dragged Rochester’s broadband speed ranking to an embarrassingly low #336 compared with other communities in New York. Suburban towns in downstate New York enjoy more than twice the speed upstate residents get, largely thanks to major upgrades from Verizon (FiOS) and Time Warner Cable (Maxx). But even compared with other upstate communities, Rochester still scores poorly, beaten by small communities like Watertown, Massena, and Waterloo. Suburban Buffalo, Syracuse, and Albany also outperform Rochester.

In contrast, in Raleigh, N.C., home to the Power America Institute — another federal manufacturing center — broadband life is better:

  • Raleigh is a Google Fiber city and will receive 1,000/1,000Mbps service for $70 a month, around $20 more than what Time Warner charges for 50/5Mbps with a promotion;
  • Raleigh is a Time Warner Cable Maxx city with free broadband speed upgrades ranging from 15Mbps before/50Mbps after to 50Mbps before/300Mbps after;
  • Raleigh is an AT&T U-verse with GigaPower city with 1,000/1,000Mbps service for $120 70 a month.

This article was updated to correct the pricing of AT&T U-verse with GigaPower in Raleigh, N.C., with thanks to reader Darrin Evans for the corrected information.

Greenlight Networks Cuts Price of Gigabit Broadband to $100/Month

greenlightGreenlight Networks, a fiber overbuilder serving select neighborhoods in the greater Rochester, N.Y. area, today announced it was cutting the price of its gigabit broadband offering by 60 percent.

The new $100/mo price takes effect immediately and will increase competition for local incumbents Time Warner Cable and Frontier Communications. Time Warner currently sells up to 50/5Mbps service and most Frontier Communications customers qualify for DSL at speeds of 10Mbps or less.

Greenlight also announced it is waiving its usual $100 installation fee for customers signing up for gigabit service.

Greenlight president Mark Murphy said he wants Rochester to be considered America’s next “Gig City,” and emphasized Greenlight does not charge hidden fees or surcharges and has no usage caps. The company also sells a less expensive 100/20Mbps tier for $50 a month and recently introduced a 500/50Mbps tier for $75 a month. The upload speed for the gigabit tier is 100Mbps.

Greenlight currently offers service in a few neighborhoods in Brighton, East Rochester, Henrietta, Irondequoit, Pittsford and Rochester where enough customer demand can be demonstrated. Potential customers sign up on the company’s website (temporarily disabled) and are notified when service becomes available.

Greenlight now only sells broadband service and has stayed out of the cable television and telephone business.

When Fiber Competition Arrives, Time Warner Cable Slashes Prices As Customers Call to Cancel

david-and-goliathThe day had finally arrived. After months watching construction crews work their way towards the house she and her boyfriend rent in Rochester, N.Y., Brenda Ververs called Time Warner Cable to cancel service. She thought it would take five minutes to dispense with a barely-tolerated relationship she has maintained with the cable company for nearly 20 years. Instead, she got a retention offer too good to dismiss out of hand.

Greenlight Networks, an East Rochester-based fiber overbuilder has been slowly expanding its footprint into a handful of neighborhoods in Rochester and its suburbs, providing 100/20Mbps service for $50 or 1,000/100Mbps for $250 a month. But only a fraction of area residents have heard of the company and even fewer qualify to sign up for their service.

“When the neighbors first saw their construction crews and we found out it was a company called Greenlight, we thought they were there to install red light traffic enforcement cameras,” Ververs said.

Greenlight uses a similar approach to Google Fiber, informally recruiting “fiberhoods” of potential customers. Once enough interest is shown, the company schedules fiber construction in the neighborhood.

But the process remains largely a mystery to many, because unlike Google, Greenlight does not update its website with neighborhood rankings or a detailed service map.

Time Warner Cable, Greenlight’s chief competitor, is well-aware of its fiber competition but considers it too minor to warrant any attention, at least until customers like Ververs call to cancel service.

Time Warner Cable’s national customer retention centers often confuse Greenlight Networks in Rochester, N.Y. with Greenlight, the larger municipally owned fiber to the home network in Wilson, N.C.

“They thought I was moving to North Carolina and was canceling service to start a new account down there, but they finally found Rochester’s Greenlight Networks in their system and went into a script about how Time Warner Cable was an established company and Greenlight was basically a fly-by-night operation that could fail any day,” said Ververs.

Other customers have told Stop the Cap! Time Warner alternates between recognizing Greenlight as a legitimate competitor worth their respect and one that cannot be trusted with your business. But the customer retention effort eventually ends up in the same place — offering customers drastic rate cuts to stay with the cable company.

Not what competition fans want to see: Greenlight's "Expansion Plans" web page is blank.

Not what competition fans want to see: Greenlight’s “Expansion Plans” web page is blank.

“They asked me why I would consider switching to Greenlight for $50 for 100Mbps broadband-only service when for $69 they will give me 50/5Mbps service, cable television, and phone service for two years,” Ververs said. “They emphasized it was less than $20 more for all three services from Time Warner vs. $50 for Internet-only service from Greenlight. They even promised a free upgrade to 100Mbps when it arrives in Rochester sometime this year.”

Some departing customers are also being offered modem fee waivers and free extras, like premium movie channels and expanded international free long distance calling.

Greenlight does not charge modem or franchise fees or hidden surcharges like regulatory recovery fees.

Behind the scenes, Time Warner Cable is also making an effort to lock up the most likely places a fiber overbuilder would want to expand service – multi-dwelling units that are less expensive to wire than single family homes.

Cable operators aggressively recruit apartment managers and neighborhood associations to sign contracts that include discounted service for every home, apartment or condo in a complex, usually offered as “included in the rent or neighborhood association fee.” Many contracts of this type give the cable company exclusive access to existing wiring, discouraging would-be competitors by requiring them to pay considerably higher construction costs to independently wire multi-dwelling units.

Readers also tell us Time Warner is offering departing customers the service improvement many wish they had all along, including a commitment to check and rewire customer homes for free if service quality is among the reasons a customer plans to cancel service. Some customers are also offered specialized customer service contact numbers normally available only to premium-class Signature Home customers. Still others are being given substantial bill credits or rebates if they agree to stay with the cable company.

Ververs hates Time Warner Cable service and the constant rate increases, but the $69 retention offer, apparently only available to customers in competitive areas, has kept them from making a final decision to switch to Greenlight.

“Greenlight doesn’t offer a video or telephone package — just broadband, and we cannot ignore the fact we used to pay Time Warner $160 and can now get three services and free HBO for almost $100 less than we were paying, less than $20 a month more than we would pay Greenlight, and Time Warner plans to match Greenlight’s 100Mbps speeds this year,” said Ververs.

Downtown Rochester, N.Y.

Downtown Rochester, N.Y.

But broadband-only customers are less impressed with Time Warner’s retention efforts in a community than has yet to see cable broadband speeds increase beyond 50Mbps.

Stop the Cap! reader Joseph Corriea writes his friend just signed up for Greenlight in the Highland Park area of Rochester and Time Warner immediately countered with an offer of Extreme Internet (30/5Mbps) for $39 a month. The deal breaker may have been the modem fee Time Warner didn’t offer to waive. Corriea’s friend left Time Warner for Greenlight and is happy with their flat $50 a month bill with no hidden gotcha fees.

Corriea wonders exactly how much bandwidth Time Warner Cable is withholding from barely competitive markets like Rochester.

The answer is plenty. Frontier Communications continues to lose an already meager broadband market share in areas of western New York wired for cable. The majority of its DSL customers only qualify for slowband speeds of 12Mbps or less and although the company recently claimed to have spent $9 million on upgrades in the area, many wonder where the money went.

“Frontier is a joke, they have always been a joke, and the only people doing business with them don’t know any better,” said Riga resident David Sobcek. “DSL is a dinosaur and although they claim faster speeds are available, it is very hit or miss to qualify for them and when the weather is bad, it’s a miss even if you did qualify. They locked my speed at a fraction of what they were selling and gave me nothing but excuses. Time Warner Cable has a monopoly for 99% of this area.”

Western New York is not on Time Warner Cable’s Maxx upgrade list for 2015, which boosts speeds up to 300Mbps. Google has intentionally avoided fiber projects in the northeastern United States because Verizon (and its limited deployment of FiOS fiber) dominates the region, and Frontier Communications has no plans to upgrade cities like Rochester to fiber to the neighborhood service similar to AT&T U-verse.

For the foreseeable future, that leaves Rochester with David vs. Goliath competition – a multi-billion dollar cable company vs. a fiber upstart. But with Time Warner Cable carrying more customer dissatisfaction baggage than American Airlines, nobody should count Greenlight Networks out, especially when the biggest complaint about Greenlight is why it is taking so long to expand their service area.

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  • Daniel: My experience with Verizon was CONSISTENTLY HORRIFIC. The sheer incompetence broke my brain. They would screw up everything they possibly could, and s...
  • Josh: Good grief. If they still have money, they HAVE to spend...I mean it's probably too late, but...what on Earth is wrong with these executives? I mean...
  • Paul Houle: The scary thing is that Frontier has a huge cash flow. There are still enough customers that use Frontier because they don't have a choice. "Cable" ...
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  • BobInIllinois: Reminder---July 1 2010, Frontier took over Verizon properties in 13 states, including my DSL account in Illinois. Took them 3 months to send me a bi...
  • LG: Same as Christopher's post above. Great work. The longer this goes on, the more I believe regulation and laws alone will not be enough. I'm thinkin...
  • Paul Sheehan Jr.: Why doesn't WGBH move to ch. 44 and WGBX go off air and what is the future for wbts-lp in boston...
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