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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.

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)

Republicans’ Fake Net Neutrality Alternative Contains Grand Canyon-Sized Loopholes

Thune

Thune

When Sen. John “Net Neutrality is unjustified” Thune (R-S.D.) and Rep. Fred “Net Neutrality is a solution in search of a problem” Upton (R-Mich.) last week magically became Internet activists ready to solve the Net Neutrality issue with an “unambiguous” bill to “protect Americans” from greedy ISPs, you will pardon me if I am just a tad suspicious.

The two Republicans who champion “less government regulation is better” and “let the marketplace decide for itself”-principles are proposing new legislation that will regulate the conduct of Internet Service Providers, claiming it will tie their hands and prevent the launch of Internet fast lanes and ban traffic degradation.

The two legislators are traveling in a fast lane of their own — hurrying to schedule hearings, mark up a bill, and speed it to the floor for consideration by the end of this month. That’s a marked departure for the U.S. Congress-as-usual, the one that can’t manage to pass virtually anything, much less in a hurry. So where is the fire?

It is at the Federal Communications Commission in Washington, scheduled to vote on its own new Net Neutrality proposal by the end of February. Thune and Upton are hoping to launch a pre-emptive strike against the anticipated strong Open Internet protections the FCC will probably enact on a party line vote. The FCC is likely to pursue a reclassification of broadband away from the lobbyist-lovin’, largely deregulated “information service” it is today towards a “telecommunications service” under Title II of the Communications Act. That represents Comcast’s worst nightmare.

???????????????????????????????Current FCC rules have allowed traffic shenanigans from ISPs like Comcast that don’t mind slowing their customers’ Netflix experience to a crawl until the streaming company opens its checkbook. The FCC’s anticipated new proposal would strictly forbid any creative end-runs around the concept of paid fast lanes Comcast can get away with today.

The proposed Republican alternative suggests a “third way” compromise only Comcast and AT&T could love. While ostensibly banning intentional interference with Internet traffic, the two legislators include a Grand Canyon-sized loophole in the form of one word you could fly an Airbus A380 through: reasonable

SEC. 13. INTERNET OPENNESS.

(a) OBLIGATIONS OF BROADBAND INTERNET ACCESS SERVICE PROVIDERS.—A person engaged in the provision of broadband Internet access service, insofar as such person is so engaged (1) may not block lawful content, applications, or services, subject to reasonable network management; may not prohibit the use of non-harmful devices, subject to reasonable network management; may not throttle lawful traffic by selectively slowing, speeding, degrading, or enhancing Internet traffic based on source, destination, or content, subject to reasonable network management; may not engage in paid prioritization; and shall publicly disclose accurate and relevant information in plain language regarding the network management practices, performance, and commercial terms of its broadband Internet access services sufficient for consumers to make informed choices regarding use of such services and for content, application, service, and device providers to develop, market, and maintain Internet offerings, except that a provider is not required to publicly disclose competitively sensitive information or information that could compromise network security or undermine the efficacy of reasonable network management practices.

No ISP has ever declared its own traffic management policies unreasonable, so whatever they do, in their minds, is “reasonable” by definition.

Upton

Upton

The proposed bill would keep Net Neutrality far away from the critical Title II foundation it needs — essential armor that will help withstand inevitable court challenges by providers outraged by the government’s attempt to interfere with their free speech rights (at the expense of their customers’ freedom from content-killing traffic slowdowns).

The concept of “network management” is Play-Doh in Comcast and AT&T’s hands. It could mean balancing traffic by adding more capacity as needed or implementing a “fair access policy” that rations inadequate capacity. Both could easily be called “reasonable” by them. Customers paying for 25Mbps and getting 6Mbps during the evenings may think otherwise.

But no worries, the Republicans’ plan requires ISPs to disclose exactly how they are undercutting the broadband service you paid good money to receive. They claim that will give you an “informed choice,” except for many Americans, there is no choice.

The FCC’s plan is much more likely to stop to the tricks, traps, and traffic manipulation in whatever form arises now or in the future. It uses well-established precedent that is unlikely to be thrown out by the courts, delivers real oversight desperately needed in the monopoly/duopoly broadband marketplace, and will actually protect consumers.

The Republican alternative primarily protects AT&T, Comcast, and their chances of getting more campaign contributions from their friends in the cable and phone business. In short, it isn’t worth your time, and you should tell your member of Congress it isn’t worth theirs either.

Cuomo Administration Promises $1 Billion for Rural Broadband Expansion Across Upstate New York

ny agendaNew York will see at least $1 billion in investments to expand and improve rural broadband in upstate New York to bring Internet access to every home in the state by 2019, if the state legislature approves the budget for Gov. Andrew Cuomo’s New-New York Broadband Program.

New York Lieutenant Gov. Kathy Hochul traveled to the North Country to unveil the spending plan in the broadband-challenged Adirondack region.

“Governor Cuomo’s program will be the largest universal broadband deployment in the nation,  investing up to one billion dollars in both public and private resources to connect every New Yorker to high-speed Internet,” Hochul told the audience. “With a state investment of $500 million in capital funds from bank settlements the program will incentivize the private sector to expand high-speed broadband access to under-served New Yorkers. The plan will elevate broadband speeds in under-served areas to previously unheard levels including a minimum speed of 100Mbps, more than ten times the federal definition of broadband.”

New York’s newest broadband initiative comes courtesy of an unexpected windfall of more than $5 billion in legal settlements with crooked banks and mortgage companies that defrauded state residents and helped trigger the Great Recession.

At least $500 million of the settlement fund would be set aside for broadband expansion, with providers required to match any funds received from the state. Time Warner Cable is likely to be awarded a significant percentage of the money, used to expand cable infrastructure into sparsely populated areas that have never met the company’s Return On Investment requirements.

The Cuomo Administration expects little opposition to the plan, because the bulk of the broadband money would be spent in Republican-controlled rural districts and won’t come from taxpayers’ pockets.

Hochul

Hochul

Republican assemblyman Dan Stec’s 114th district is a case in point. Hamilton County has little or no access to broadband service and Stec’s constituents in nearby Essex, Saratoga, Washington and Warren counties have spotty coverage. He’s thrilled the state will likely spend money on broadband in his district.

“There are towns in my district that don’t have good access to the Internet,” Stec said. “Moms and dads will drive their son or daughter and park in the parking lot of the public library or park in the parking lot of Town Hall to access a broadband wireless connection. That’s crazy.  It’s nice to see the governor making the infrastructure investment that needs to be made in the North Country and frankly in all of upstate.”

Although speaking in the Adirondacks, the former congresswoman turned lieutenant governor said there are plenty of areas in western New York that also desperately need broadband access. Regional economic development committees will be responsible for identifying the most broadband-challenged areas where funding should be prioritized.

“I had [served] seven counties including Wyoming, Livingston, Ontario, Niagara, and Genesee,” Hochul said, referring to parts of the 26th Congressional District between the cities of Buffalo and Rochester she lost in the 2012 election. “The Southern Tier has challenges as well. We have a map that shows the areas which do not have the access and so we know where to have a laser focus on increasing that availability. We know New York City is in good shape. The urban areas are in good shape. So this is very much a rural initiative.”

Despite the unlikely case for any significant broadband funding headed downstate, the governor is attempting to carefully balance his overall spending initiatives between upstate and New York City, the latter now demanding a larger share of the settlement money for downstate. To avoid a budget battle between the two regional factions, Gov. Cuomo intends to bundle his spending programs together in a package presented to the state legislature as part of today’s State of the State address.

New York's Broadband Availability Map

New York’s latest Broadband Availability Map, excluding well-covered downstate regions – Areas in white have no broadband access.

“He’s going to present them as part of a package: the New York State Opportunity for All program,” said Hochul. “This is one of the most significant announcements he’s going to make because it’s going to affect the lives of so many millions of people in our state. In this day and age the fastest road to opportunity is the information highway. Probably the comparable analogy would be the interstate highway system back in the 1950’s. That was able to connect communities and enhance commerce. It was transformative. It was essential in its day. That’s the opportunity that lies before us.”

Ironically, the state-funded initiative is likely to deliver faster broadband to rural New York than their more urban neighbors receive. Under the program, grant recipients will have to pledge to deliver at least 100Mbps speeds to customers, except in the most rural areas where the minimum speed requirement will be set at 25Mbps, with upgrades to come later. Most urban residents receive between 3-10Mbps DSL from Verizon or Frontier Communications and 10-15Mbps from Time Warner Cable, the largest cable company in the state. Verizon FiOS delivers even faster broadband to customers in New York City and Long Island, and selected suburbs in Buffalo, Syracuse, and Albany.

Providers will be encouraged to use state-owned institutional fiber networks, including one laid along the length of the New York State Thruway, and other government infrastructure wherever possible. That is likely to mean fiber broadband will constitute a major part of the initiative. That pleased the Fiber to the Home Council, which advocates for fiber to the home broadband service.

“The [council] commends Governor Andrew Cuomo on an ambitious plan to hit 100 Mbps in every New York home by Jan. 1, 2019,” read a statement from the Council. “This $500 Million investment into the NYS Broadband Program Office will make high-speed Internet affordable in underserved communities by incentivizing private investment, something the FTTH Council strongly supports.”

The state’s chief digital officer Rachel Haot claimed New York is doing more than any other state to invest in high-speed broadband.

http://www.phillipdampier.com/video/2015 Opportunity Agenda NY Statewide Broadband Access for Every New Yorker 1-16-15.mp4

Upstate New York officials discuss the broadband problems in rural New York and how they spent years trying to get attention in a state where government is often focused primarily on the interests of New York City. Lt. Gov. Kathy Hochul announces a $1 billion statewide broadband improvement program. (44:42)

Mesa County, Col. to Charter Cable: Really, Another Outage? Charter to County: Quit Whining So Much

Phillip Dampier January 19, 2015 Charter, Consumer News, Public Policy & Gov't 1 Comment

pushpollCharter Cable customers in Mesa County, Col., experiencing the latest service outage from the cable company were told to “quit whining” and “check your attitude” when they called Charter’s customer service line to ask when the problems would be fixed.

“If Mesa County didn’t whine so much, maybe something would be done,” one Charter representative told a customer in Grand Junction.

“Talking to [Charter] is like trying to put socks on an octopus,” said Dillard Jenkins.

Stop the Cap! reader June Jones found that to be true when she complained to Charter about not being able to reach 911 on her Charter phone during the recent outage.

“I was unhappy after the representative literally told me ‘that’s not our problem, get a cell phone like everyone else’,” Jones said. “I was so shocked being talked to that way I didn’t know what to say. I am 76 years old and in all my life I have never heard a company use that tone with me. The next thing I heard was, ‘is there anything else? I didn’t think so’ and she just hung up.”

Alex Danders waited on hold 35 minutes to speak to a representative about the Charter Internet outage at his business. He later wish he hadn’t.

“All I wanted to know is if they knew when it was going to be fixed and the guy told me ‘to check my attitude’ and later told me to ‘go screw yourself’ and disconnected me,” said Rodriguez.

Charlotte Conboy is a Charter customer who has had trouble with Charter for the last six months. Her two home-based businesses have suffered from no Internet access during frequent outages.

“If […] their company [had] issues [affecting their offices], they would have it fixed right away” said Conboy. “They say that’s beside the point and I get hung up on.”

charter downA county official calling to find out when repairs would be completed was told, “we have excellent service and do not appreciate your complaint for one incident of interruption of service.”

The latest outage took out Internet service for schools across Mesa County for several hours two days in a row. Teachers scrambled to change their lesson plans to work around the outages.

“I’ll tell you the last couple of weeks the last three weeks or so I’ve been out talking to people, they’re furious, people are upset I mean this is our primary communications,” commissioner Scott McInnis told KKCO. “In exchange for using the right of way we expect them to deliver a service that the reasonable person would say ‘hey the quality of this service is good’ and we expect that [they will] deliver that.”

http://www.phillipdampier.com/video/KKCO Grand Junction County Commissioners get involved with Charter issues 1-15-15.flv

KKCO in Grand Junction reports that hundreds of area residents are outraged about ongoing problems with Charter Cable and the rude responses they get when they call Charter’s customer service line. (3:23)

The ongoing problems with Charter Cable and the company’s surly responses to customers prompted a stern letter from the Mesa County Board of Commissioners to Charter Communication’s senior manager of Government Relations. They plan to meet with senior Charter officials today to discuss the matter.

Dear Mr. Rasmussen;

Today we have received multiple complaints from businesses and residents of Mesa County regarding interruption of Charter’s Cable Service. Currently, District 51 Schools are without service and we have been informed that service has been down for several hours.

Please note that this is unacceptable for Charter subscribers who feel that they can go to no one for resolution. When calling the customer service line they are told multiple ‘reasons’ for the outage, including responses such as ‘we have excellent service and do not appreciate your complaint for one incident of interruption of service,’ and ‘If Mesa County didn’t whine so much, maybe something would be done.’

Timely resolution of this issue would be prudent. We are requesting immediate and prompt dispatch of a response team to fix the system post haste; as well as a heightened awareness of the frustration Mesa County subscribers are having with your Customer Service Department. Good faith compliance is implied with the franchise agreement. We have also been informed by the City of Grand Junction that they have also heard from frustrated citizens regarding this issue.

Sincerely,
Mesa County Board of Commissioners
Rose Pugliese, Chair
John Justman
Scott McInnis

http://www.phillipdampier.com/video/KKCO Grand Junction School district loses phones and internet again 1-16-15.flv

The entire Mesa County school district lost Internet access for a second day after another Charter Cable outage. KKCO reports parents and staff are concerned. (3:08)

 Thanks to reader June Jones for tipping us about this story.

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