Recent Articles:

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.

Charlotte, N.C. Better Business Bureau Names Its Top Offender for 2014: Time Warner Cable

Phillip Dampier January 15, 2015 Consumer News, Time Warner Cable 2 Comments

twc logoTime Warner Cable was named by the Better Business Bureau’s its biggest overall offender in the Charlotte region, generating 187 complaints last year, according to the group’s annual year-end report, noted by the Charlotte Observer.

The cable company did not generate enough complaints to put cable and satellite provider complaints in the top complaint categories, however. Broadband providers in the region came in third in complaints, behind new car dealers and collection agencies. Auto repair shops and used car dealers did better, coming in fourth and fifth, respectively.

Time Warner Cable could not be reached for comment, but complaints registered with the BBB against the cable company almost always were resolved to the customer’s satisfaction. Most companies forward BBB complaints to “executive level” customer service supervisors that are empowered to do almost whatever it takes to settle a complaint. In Charlotte, 91 percent of complaints were quickly resolved once registered with the organization.

 

Conservative Group: “End Comcast’s Hegemony”; Accuses Company Of Working for the Obama Left

comcast smearA conservative group has launched an assault on the Comcast-Time Warner Cable merger, accusing the cable company of cozying up to the Obama Administration and the political left in its news coverage to win corporate favors.

“Comcast needs Obama administration approval to merge with Time Warner Cable, giving it access to two-thirds of American’s homes,” Conservative War Chest spokesman Mike Flynn said in a statement. “The last time Comcast needed a government favor we got Al Sharpton five nights a week. What will we get in exchange for a deal worth billions to Brian Roberts and other owners of Comcast?”

The group has bought airtime to run two-minute ads detailing its case that Comcast-owned NBC News has become a partisan supporter of the current administration and if its parent company’s merger deal is successful, it means Comcast’s power and value to the left-wing will grow even greater.

“Of course, Comcast’s proposed merger with Time Warner is an attempt to further not only its commercial hegemony, but its political agenda,” the group writes in a lengthy 68-page letter addressed to NBC affiliated local stations in at least five presidential swing states–Florida, Michigan, Nevada, Ohio, and Pennsylvania. “And to that end it spent $12 million on Washington lobbyists in 2014 alone, not including what Comcast spent in the final three months of the year. Conservatives should embrace this opportunity to show a commercial and political mega-giant that the truth and the support of the American people far outweigh entrenched power and massive amounts of money.”

comcast cons“We intend to demonstrate to Comcast/NBC/Universal that [conservatives] have not thrived for six decades – we have not come all this way – just to cede our national and, indeed, global victories for the cause of freedom to a group of grasping corporate operatives seeking commercial and political power. So, the focus of the conservative movement needs to be not on the politicized and partisan faces of NBC or the hired slanderers at MSNBC – criticizing them just makes them more important than they are – but on the corporate ‘suits in the suites’ who are the truly culpable parties.”

“Hence, we hope Mr. Roberts [CEO of Comcast] had a pleasant visit with the President of the United States when he stopped by his home. But he and his colleagues should also know that in the form of public messages, like this letter, they will be getting less pleasant coverage from the conservative movement.”

The group isn’t directly attacking the merger deal as a central focus of their campaign. Instead, they are seeking a restoration of “the traditional journalistic standards that have been squandered in recent years by NBC News and its corporate owners.”

“I hope the affiliates have a stiff drink ready when they read the report,” Flynn added. “Reviewing the trite liberal gruel that comes out of Brian Williams and Chuck Todd, for example, is not for
the faint of heart.”

No NBC station has yet acknowledged they have read the lengthy letter and it isn’t known if they will consent to airing the group’s advertisement that directly attacks the integrity of the network to which the station is affiliated.

http://www.phillipdampier.com/video/CWC_Save NBC News.mp4

The Conservative War Chest produced this two-minute ad it intends to run on NBC stations in at least five states condemning what they perceive as a politically motivated left-wing bias at Comcast-owned NBC News. The group fears approval of the Comcast-Time Warner Cable merger will only increase the damage of anti-conservative bias in the NBC newsroom. (2:00)

Updated: GCI Changes Usage Cap Policies: Automatic Overlimit Fees Replaced With Speed Throttling

GCI_logoAlaska’s largest cable company today unveiled changes to its Internet plans, ditching surprise overlimit fees in favor of a speed throttle.

GCI has been the subject of bad press in the past, with some customers experiencing up to $1,200 in overlimit fees after exceeding GCI’s usage allowances. In an effort to avoid public relations nightmares like that, GCI will stop assessing automatic overlimit fees and instead impose a speed throttle on customers over their limit that will temporarily reduce broadband speeds to less than 1Mbps until the next billing cycle begins. Customers can voluntarily pay for more usage in $10 increments, which buys a reprieve from the speed throttle.

GCI “No Worries” Broadband Plans offer varying usage caps and extra usage allotments:

no worries

Customers on lower speed plans continue to face a lower usage allowance and will receive considerably less extra data for their $10 add-on data plan. GCI’s highest speed re:D offering does get a bigger usage allowance: 600GB, up from 500GB. An $11.99/mo surcharge continues for broadband-only customers.

GCI’s largest competitor remains telephone company ACS, which heavily markets its unlimited usage DSL plans. Almost as an afterthought, ACS now markets packages that include landline service with unlimited local calling and 180 minutes of long distance for free.

acs unlimited

A price comparison between the two providers is somewhat hampered by the fact GCI does not publicize a broadband+home phone bundle package on their website. GCI Home Phone is priced at $19.99 a month.

A 10Mbps unlimited use package from ACS costs $110/month. A 10Mbps plan from the cable company with a 30 40GB allowance + GCI Home Phone costs $79.98. On price, GCI wins at this speed… if you stay within your allowance. A 50Mbps unlimited use package from ACS runs $180 a month. GCI charges $104.98 with 150GB of included usage. Again, the price winner is GCI if you stay within your allowance. Taxes, surcharges and government fees are extra.

Heavier users may find ACS’ initially higher prices worthwhile if they are forced to buy GCI’s add-on data buckets. Both companies charge considerably more than providers in the lower 48 states.

Last year, nearly 10% of GCI’s revenue was earned from automatically applied overlimit fees. Giving up some of that revenue is a concession, but one that is likely to end bill shock and negative media attention. Still, usage allowances remain arbitrary. GCI’s entry level 10Mbps plan only offers a paltry 30 40GB a month — an allowance largely unheard of among other U.S. cable providers. GCI will also have a difficult time explaining why $10 will only offer one customer 5GB of extra usage while others will get up to 30GB. The costs for the additional data to GCI are the same.

Our thanks to an anonymous reader for sharing the news.

Updated 4:08pm EST 1/15: After going to press, GCI changed their website, adjusting the usage allowance for their 10/1Mbps plan to 40GB (up from 30GB) and deleted references to the $11.99 surcharge for broadband-only customers, which apparently no longer applies.

President Obama Calls for an End to State Bans on Community Broadband; Public Networks Save $

Obama

President Barack Obama

President Barack Obama will be in Cedar Falls, Iowa today to announce steps his administration plans to take to improve broadband in the United States, including a call to end laws that restrict community broadband development that limits competition.

“Today, too few Americans have affordable and competitive broadband choices, but some communities around the country are choosing to change that dynamic,” says a statement issued by the White House. “As a result – as outlined in a new report being issued today – cities like Lafayette, Chattanooga, and Kansas City, have broadband that is nearly one hundred times faster than the national average, yet still available at a competitive price. By welcoming new competition or building next-generation networks, these communities are pioneers in broadband that works, and today in Cedar Falls, Iowa, the President is highlighting their remarkable success stories and providing municipal leadership and entrepreneurs new tools to help replicate this success across the nation.

The report, produced by the National Economic Council and Council of Economic Advisers, finds no evidence to support industry contentions that community-owned broadband duplicates existing broadband services and wastes taxpayer dollars. It also challenges cable and phone industry-backed groups claiming publicly owned broadband networks are business failures.

It cites the success of Chattanooga’s EPB Fiber service, operated by the local municipal utility. Not only is EPB successful financially, but it has introduced Chattanooga residents to the kind of competition sorely lacking in most cities for telecom services.

cedar falls“EPB’s efforts have encouraged other telecom firms to improve their own service,” states the report. “In 2008, for example, Comcast responded to the threat of EPB’s entrance into the market by investing $15 million in the area to launch the Xfinity service – offering the service in Chattanooga before it was available in Atlanta. More recently, Comcast has started offering low-cost introductory offers and gift cards to consumers to incentivize service switching. Despite these improvements, on an equivalent service basis, EPB’s costs remain significantly lower.”

In Wilson, N.C., Time Warner Cable customers pay significantly less for cable and broadband service than other North Carolina customers because of the presence of Greenlight, the community-owned fiber to the home provider. TWC customers in Wilson pay stabilized prices for service while residents in the nearby Research Triangle pay as much as 52 percent more for basic Internet service, according to the report. Greenlight’s competition has brought gigabit broadband to the community as well as lower prices for customers who decide to remain with Time Warner. The combined savings is estimated at more than $1 million annually for Wilson residents.

EPB is the municipal utility in Chattanooga, Tenn.

EPB is the municipal utility in Chattanooga, Tenn.

Those who believe municipal broadband is a waste of taxpayer dollars should consider the story of Lafayette, La.’s LUS Fiber. In addition to bringing superior broadband service to a city dominated by a cable operator that used to treat the market as an afterthought, the presence of LUS’ fiber to the home network has forced Cox Cable to improve service, offer significant customer retention deals to departing customers and defer rate increases. The investment in community broadband has saved residents an estimated $4 million from rate hikes that went ahead in other Cox cities, with an estimated total savings of between $90 and $100 million for Lafayette-area broadband customers over LUS’ first 10 years of service.

Taxpayer-supported institutions like local government, law enforcement, and schools have also seen dramatic savings by switching to municipal solutions. In Scott County, Minn. the local government’s annual bond payment for constructing their own broadband network is $35,000 less than what the county used to pay private companies for a much slower network. Area schools that formerly paid private sector telecom companies $58 per megabit of Internet speed now pay $6.83 — a savings of nearly 90 percent. Schools also received dramatic speed increases from 100 to 300Mbps. They paid less for more service — from $5,800 a month before to $2,049 a month today. Those payments go straight back to the county government instead of into the hands of out-of-state investment bankers and shareholders. On the state level, Minnesota’s public institutional network is saving taxpayers almost $1 million a year.

With the broadband profit gravy train for big cable and phone companies grinding to a halt in competitive areas, several of these companies have spent millions lobbying state governments to outlaw public broadband services. They have succeeded in 19 states, primarily with the assistance of the corporate-funded American Legislative Exchange Council (ALEC), which appeals to primarily Republican lawmakers with claims government broadband is unfairly competing with the private sector. In fact, private providers have not been driven out of communities where they face municipal competition, but they have been forced to lower prices and improve service for customers.

Today the president will call for a new effort to support local self-determination for broadband by strongly opposing industry-backed, anti-competitive deterrents and bans on community-owned networks. The president will also sign a letter addressed to FCC chairman Thomas Wheeler encouraging him to move forward with a federal ban on state broadband laws that restrict broadband development.

He will also announce additional funding for rural broadband expansion and take steps to bring local leaders together to explore how the development of community broadband initiatives in their cities and towns can make a major difference in the 21st century digital economy. The president recognizes that most Americans lack sufficiently competitive choices for broadband service and often have just one choice — the cable company — for broadband speeds greater than 25Mbps. That means many Americans are seeing their broadband speeds lag while their monthly bills continue to grow.

Community-owned broadband may be the only alternative many cities have for better broadband as would-be competitors are scared off by high construction costs and an inability to secure cable television programming at competitive prices for their customers.

Missouri Representative Introduces Community Broadband Ban Bill to Protect AT&T, CenturyLink

Rep. Rocky Miller (R-Lake Ozark)

Rep. Rocky Miller (R-Lake Ozark)

A Missouri state representative with a track record of supporting AT&T and other telecommunications companies has introduced a bill that would effectively prohibit community broadband competition in a bid to protect incumbent phone and cable companies.

Rep. Rocky Miller’s (R-Lake Ozark) House Bill 437 would strictly prohibit the construction of public broadband networks in any part of Missouri served by a private provider, regardless of the quality of service available or its cost, without a referendum that includes a mandated question observers consider slanted in favor of existing providers.

HB437 would banish community broadband networks as early as September unless services were already up and running. The bill would effectively stop any public broadband network intending to compete against an existing phone or cable company within the boundaries of a city, town, or village offering any level of broadband service. It would also require communities to schedule a referendum on any project budgeted above $100,000, and includes ballot language that implies public broadband projects would duplicate existing services, even if a private provider offers substantially slower broadband at a considerably higher price. (Emphasis below is ours):

“Shall [Anytown] offer [broadband], despite such service being currently offered within Anytown by x private businesses at an estimated cost of (insert cost estimate) to Anytown over the following five-year period?”

Miller’s proposal would also require voters to approve a specific and detailed “revenue stream” for public broadband projects and if the referendum fails to garner majority support, would prohibit the idea from coming up for a second vote until after two years have passed, allowing cable and phone companies to plan future countermeasures.

yay attThe proposed bill also carefully protects existing providers from pressure to upgrade their networks.

Miller’s bill defines “substantially similar” in a way that would treat DSL service as functionally equivalent to gigabit broadband as both could be “used for the same purpose as the good or service it is being compared to, irrespective of how the good or service is delivered.”

In other words, if you can reach Rep. Miller’s campaign website on a CenturyLink 1.5Mbps DSL connection and over a co-op gigabit fiber to the home connection, that means they are functionally equivalent in the eyes of Miller’s bill. Residents voting in a referendum would be asked if it is worthwhile constructing fiber to the home service when CenturyLink is offering substantially similar DSL.

Among the telecom companies that had no trouble connecting to Rep. Miller to hand him campaign contributions: AT&T, CenturyLink, Comcast, and Charter Communications

The Coalition for Local Internet Choice was unhappy to see yet another state bill introduced designed to limit competition and take away the right of local communities to plan their own broadband future.

“The state of Missouri is the latest legislature to attempt to erect barriers to the deployment of broadband networks that are critical to the future of its local economies and the nation, via House Bill 437,” said a statement released by the group. “High-bandwidth communications networks are the electricity of the 21st century and no community should be stymied or hampered in its efforts to deploy new future-proof communications infrastructure for its citizens – either by itself or with willing private partners.”

cell_towerThe group urged the Missouri legislature to reject the bill.

In 2013, Miller hit the ground running in his freshman year to achieve his campaign pledge of “getting the government out of the way of economic development.” In the Missouri state legislature, Miller strongly supported AT&T’s other state legislative priority: deregulation of cell tower placement. Miller traveled around Missouri promoting HB650, an AT&T inspired bill that would strip away local oversight powers of cell sites.

The issue became a hot topic, particularly in rural and scenic areas of Missouri, where local officials complained the bill would allow haphazard placement of cell towers within their communities.

“[The] bill inhibits a city’s ability to regulate cell towers as we have in the past,” Osage Beach city attorney Ed Rucker said. “The process we have in place has worked, and has worked well.”

Had HB650 become law, Osage Beach residents would today be surrounded by six new cell towers around the city, with little say in where they ended up. The bill Miller supported would have also eliminated a requirement that providers repair, replace, or remove damaged or abandoned cell towers, potentially leaving local taxpayers to pick up the tab.

Miller claimed the legislation would allow expansion of wireless broadband across rural Missouri and remove objectionable fees. HB650 would limit municipal fees to $500 for co-locating an antenna on a pre-existing tower and $1,500 for an application to build a new tower. Local communities complained those limits were below their costs to research the impact and placement of cell towers.

“That cost is an inhibitor to broadband,” Miller countered. “It’s beginning to look like the fees are an impediment to the expansion of broadband.”

Miller did not mention AT&T’s interest in cell tower expansion is also connected to its plan to retire rural landline service in favor of its wireless network, saving the company billions while earning billions more in new revenue from selling wireless landline replacement service over its more costly wireless network. The cell tower bill was eventually caught up in a legal dispute after a court ruled the broader bill that included the cell tower deregulation language was unconstitutional on a procedural matter.

Still Waiting for FiOS in New York City? Your Landlord Might Be to Blame… Or Verizon

Phillip Dampier January 13, 2015 Competition, Consumer News, Public Policy & Gov't, Verizon 2 Comments

keep outVerizon Communications has stepped up efforts in New York City to get intransigent landlords to let the company into their buildings to bring FiOS fiber optics to tenants, even as some property managers accuse Verizon of ignoring earlier requests to get the service.

On at least 13 occasions in December, Verizon has filed petitions with the New York Public Service Commission requesting help to gain entry to a total of 476 buildings in the city after claiming to receive either no response from building management or active resistance to Verizon bringing FiOS to their tenants.

In an effort to stay compliant with its franchise agreement with the City of New York, Alyson Siegal, area manager for FiOS Franchise Assurance – New York City, has written a lot of letters lately:

Dear Property Owner/Manager:

I have been advised by Verizon New York Inc.’s (“Verizon”) NYC FiOS Real Estate Department of the difficulty Verizon has encountered in attempting to install and/or attach its FiOS facilities at [your property].

Our records indicate that you have not responded to our previous correspondence, that you have conditioned Verizon’s access on unreasonable terms and conditions or that you have denied Verizon access to the Property. The purpose of this letter is to restate our need to gain access to your Property.

By way of background, Verizon is attempting to gain access to your building because we have received a request for FiOS service(s) from a tenant(s) in your building and/or a resident(s) on your block, and our access to your Property is necessary to provide cable television services to those tenants and/or residents. We are very excited about the opportunity to provide world-class voice, data and video services to you and the area residents using a fiber based network to deliver these services at unprecedented speeds and capacities. Your cooperation in allowing Verizon access to your Property will enable your tenants and/or other residents on your block to receive the services they want in a timely manner.

Building owners don't want a repeat of this kind of FiOS installation.

Building owners don’t want a repeat of this kind of FiOS installation.

In a few earlier cases, some landlords refused entry without special financial compensation or gifts like free service for life. Others have unilaterally decided their tenants are happy enough being served by Time Warner Cable and don’t need a competitor. But a significant number claim the problem is with Verizon itself.

Hamdi Nezaj, who owns several buildings in Bronx, last summer refused entry to workers seeking to install FiOS, complaining Verizon performed shoddy work.

“On three properties that I own, the installation of FiOS was done recklessly,” complained Nezaj. “They never came back to fix the holes that were drilled, fix the boxes they installed and put molding on their respective wires. I am not interested once again in having Verizon drill holes and butcher my buildings.”

Several building owners responded to Verizon’s complaints indicating the phone company itself was responsible for dropping the ball on FiOS installation and were stunned the company was resorting to legal tactics to force entry.

Arthur Leeds from Leeds Associates LLC reports one of his properties has been waiting for Verizon to install FiOS since April 2014.

This customer found Verizon installing its FiOS cables up and down his doorways.

This customer found Verizon installing its FiOS cables up and down his doorways.

“We have responded every time we were asked for access most specifically to Thomas Miller, the FiOS franchise manager in NYC, and to Alyson Seigal (sic) another Verizon manager either by phone or via certified mail but all of our responses to them were ignored,” wrote Leeds. “Further we are well aware of the law and are certainly interested in supplying our tenants with alternatives to RCN and Time Warner Cable. However we do have a right to know how and with what materials Verizon intends to install their equipment in our building, [a request that] seems to stall any response on your part or that of your contractors.”

Amy Ward, an attorney representing the interests of 200 East 87”’ Street Associates, LP, has Leeds beat. She told the PSC Verizon first sought to install FiOS in the building in 2012, but Verizon kept stalling. When Verizon formally sought permission yet again in September 2014, a building representative asked for a delay because of “multiple intrusive projects occurring at and planned for the property.” No response to that request was forthcoming from Verizon until the December demand for entry was received.

Brian Loftman, property manager of the @The Aspen New York, wrote the PSC he was not happy to hear from Verizon’s legal team either.

Many building owners want Verizon to install crown molding that can effectively hide cables.

Many building owners want Verizon to install crown molding like this that can effectively hide cables.

“I am appalled that Mr. Richard C. Fipphen, assistant general counsel for Verizon has contacted you stating that we have not complied with their request to give access to the property,” wrote Loftman.

Loftman included a copy of correspondence he sent to Ms. Siegal, claiming she is impossible to reach.

“I am writing to you because after several attempts to reach you via phone at 888 364 3467 it has been impossible,” wrote Loftman. “I find it hard to believe that you being in the telecommunications business that even your voicemail is full and I cannot leave a message on the number you provided us to contact your office.”

Loftman also questioned Siegal’s claims that Verizon has “world-class voice, data, and video services.”

“Has it improved since the last time our phones were out or the DSL went down for almost a week?” he asked.

Loftman’s previous experience with Verizon’s installation crews was not a positive one. He only learned after signing up for the service at another building he manages that Verizon intended to use visible basic plastic molding throughout the building’s hallways to hide FiOS wiring. Other property managers shared aesthetic objections to Verizon’s plans, requesting wiring be installed behind more visually attractive crown molding or run through ceiling ducts.

Part of New York State’s Public Service law covers the installation of cable television facilities, which also covers Verizon FiOS:

§228. Landlord-tenant relationship

1. No landlord shall:

(a) interfere with the installation of cable television facilities upon his property or premises, except that a landlord may require:

(1) that the installation of cable television facilities conform to such reasonable conditions are necessary to protect the safety, functioning and appearance of the premises, and the convenience and well being of other tenants;
(2) that the cable television company or the tenant or a combination thereof bear the entire cost of the installation, operation or removal of such facilities; and
(3) that the cable television company agree to indemnify the landlord for any damage caused by the installation, operation or removal of such facilities.

§898.1 Prohibition

Except as provided in section 898.2 of this Part, no landlord shall demand or accept any payment from any cable television company in exchange for permitting cable television service or facilities on or within said landlord’s property or premises.

§898.2 Just Compensation

Every landlord shall be entitled to the payment of just compensation for property taken by a cable television company for the installation of cable television service or facilities. The amount of just compensation shall be determined by the commission in accordance with section 228 (1)(b) of the Public Service Law upon application by the landlord pursuant to section 898.5 of this Part.

Search This Site:

Contributions:

Recent Comments:

  • Roman Lewyckyj: Phil, what do you think the chances are that Google Fiber will come to the Upstate NY area? Any at all?...
  • Houston: Very helpful. I called an pretty easily got my bill reduced by $60/month and a U300, 18Mbps and phone package. They also threw in a one-time $60 bil...
  • shunda Hawkins: Hello im experiencing the same results. We have enough people here to file a class action lawsuit!!...
  • Doom: Nice to see Rocky Miller openly whoring himself out to the telecoms against the people he's purporting to represent....
  • Oscar@SA: Come to San Antonio. I will help bury the cable in my area if needed, then I can go tell TWC to go you know where.. lol...
  • ssssssssssss: who want to make money online >>> http://adf.ly/wTP2i <<< after 3 mouth can you make almost 5 usd per day but after 1 year can youy...
  • John: Gah, they are putting up Google Fiber in NC and Georgia, but nothing in SC? Not even Charleston or Columbia or Myrtle Beach?...
  • BobInIllinois: So far, NO Google FIber in Big 10 country!!.....
  • Javier: Im having bad internet and phone signal with brighthouse for many years, I get disconnected from internet and my son xbox game is the same, technician...
  • Brian: I am an avid gamer who feels this pain as my speed drops to half (or less) during peak hours. Imagine my pain as only 10 miles away my friends have su...
  • Jason: Great article! I had U200, 18mps internet with 3 receivers, HD with no premium channels. I was paying $163/month and received a mailer from Comcast...
  • Limboaz: Figuring out how to stop the blatant corruption in Washington is one of the biggest challenges facing the American public. Frankly, crony capitalism s...

Your Account: