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FCC Considering Making It Easier for Telcos to Kill Landline/DSL Service

The FCC has circulated a draft rulemaking that proposes to make it easier for phone companies to end landline and DSL service in areas they are no longer interested in maintaining existing infrastructure.

“We propose eliminating some or all of the changes to the copper retirement process adopted by the Commission in the 2015 Technology Transitions Order,” according to the draft, which would allow phone companies to end service “where alternative voice services are available to consumers in the affected service area.”

The proposed new policy would depart significantly from the one put in place during the Obama Administration because it would end assurances that competing providers would have reasonable and affordable access to wholesale broadband and voice services after phone companies mothball their copper wire networks in favor of wireless or fiber alternatives. If the FCC proposal passes, incumbent phone companies like Verizon and AT&T could end rural landline and DSL service and not make provisions for competitors to have access to the technology alternatives the phone companies would offer affected customers.

Verizon immediately praised the FCC proposal, saying it was “encouraged the FCC has set as a priority creating a regulatory environment that encourages investment in next-generation networks and clears away outdated and unnecessary regulations,” wrote Will Johnson, senior vice-president of federal regulatory and legal affairs at Verizon. “This action is forward-looking, productive and will lead to tangible consumer benefits.”

Previous attempts by Verizon to discontinue landline and DSL service did not lead to “tangible consumer benefits” as Verizon might have hoped. Instead, it led to a consumer backlash, particularly in areas affected by Superstorm Sandy in 2012. Verizon elected not to rebuild its copper wire infrastructure in affected coastal communities in New York and New Jersey. Instead, it introduced a wireless landline replacement called Voice Link that proved unpopular and caused a revolt among residents on Fire Island. The wireless replacement did not support data, health monitoring, credit card transaction processing, faxing, and was criticized for being unreliable. Verizon eventually relented and opted to expand its FiOS fiber to the home network on the island instead.

Verizon also attempted to market Voice Link to New York residents in certain urban and rural service areas affected by extended service outages in lieu of repairing its existing infrastructure. Under the proposed changes, the FCC would ease the rules governing the transition away from copper-based services, which include traditional landline service and DSL, in favor of wireless technology replacements and fiber optics.

Because telephone companies like AT&T and Verizon have made mothballing rural wireline infrastructure a priority, the FCC strengthened its rules in 2015 by doubling the notification window from 90 to 180 days, giving more time for affected customers to make other service arrangements or complain to regulators that there were no suitable alternatives. The FCC wants to roll back that provision to its earlier 90-day notification window in response to telephone company complaints that maintaining copper wire infrastructure is expensive and diverted investment away from next-generation networks.

AT&T has been lobbying for several years to win permission from state legislatures to abandon copper wireline infrastructure, mostly in rural areas, where the company has chosen not to upgrade to fiber optic networks. AT&T claims only about 10% of their original landline customer base still have that service.

Both Verizon and AT&T have shown an interest in moving rural consumers to more proprietary wireless networks, preferably their own, where consumers would get voice and data services. But consumer advocates complain customers could lose access to competitive alternatives, may not have a guarantee of reliable service because of variable wireless coverage, could pay substantially more for wireless alternatives, and may be forced to use technology that either does not support or works less reliably with home security systems, medical monitoring, faxing, and data-related transactions like credit card processing.

Other consumer groups like AARP and Public Knowledge have complained that shortening the window for a transition away from basic landline and DSL service to alternative technology could disproportionately affect the customers most likely to still depend on traditional wireline service — the elderly, poor, and those in rural areas.

Ajit Pai Starts FCC Chairmanship by Clear-Cutting Pro-Consumer Policies, Cheap Internet for the Poor

Pai

Like President Donald Trump, Ajit Pai is a busy man. He’s spent his first month as FCC chairman gutting his predecessor’s legacy, reversing pro-consumer policies, ending forays into set-top box competition, fair pricing for inmate phone calls, cheap internet access for the poor, ending reviews of data caps and zero rating practices, and threatening to terminate Net Neutrality with extreme prejudice.

No wonder Bob Quinn, AT&T senior executive vice president of external & legislative affairs applauded President Trump’s appointment of Pai, proclaiming he will “quickly and decisively put back in place the commonsense regulatory framework necessary to support the President’s agenda for job creation, innovation and investment. We look forward to working with him and his team and the FCC to support President Trump’s growth agenda.”

AT&T’s only growth agenda is sending customers ever-increasing bills, and with Mr. Pai at the helm of the FCC, they are sure to get their wish.

Over their terms at the FCC under the Obama Administration, Republican Commissioners Ajit Pai and Michael O’Rielly frequently complained their minority voices on the Commission were ignored and newly proposed regulations or policies would come before the FCC so quickly, there was inadequate time for public review. But since Pai teamed up with O’Rielly to abolish many of the most important achievements of his predecessor, Chairman Thomas Wheeler, they have reportedly all but ignored the sole remaining Democrat currently serving on the Commission — Mignon Clyburn.

Last Friday, Clyburn accused Pai of hypocrisy for complaining about policies being rushed for a vote without explanation before doing the same thing himself late last week.

FCC Commissioner Mignon Clyburn

Clyburn

“Today is apparently ‘take out the trash day.’ In an eponymous episode of the West Wing, White House Chief of Staff Josh Lyman stated: ‘Any stories we have to give the press that we’re not wild about, we give all in a lump on Friday . . . Because no one reads the paper on Saturday,'” Clyburn said in a statement. “Today multiple Bureaus retract—without a shred of explanation—several items released under the previous administration that focus on competition, consumer protection, cybersecurity and other issues core to the FCC’s mission. In the past, then-Commissioner Pai was critical of the agency majority for not providing sufficient reasoning behind its decisions.”

Clyburn’s office asked for more than the allotted two days to review a dozen items that suddenly appeared on the FCC’s agenda.

“We were rebuffed,” Clyburn wrote.

Clyburn then accused Pai of violating the Administrative Procedure Act, which requires adequate public notice and a comment period for public input. When she asked the chairman to comply with the “reasoned decision-making requirements of the APA,” she was told ‘No deal.’

Mr. Pai’s regulatory rollback agenda has moved with breathtaking speed, according to some FCC observers. Consumer group Free Press today called Pai’s progress “Orwellian.” Over less than a month, Pai — with the help of Commissioner O’Rielly — has:

  • Announced the formation of a Broadband Deployment Advisory Committee that is expected to be stacked with industry stakeholders that will recommend reform the FCC’s pole attachment rules, identify “unreasonable” regulatory barriers to broadband deployment, encourage local governments to adopt “deployment-friendly” policies, and develop a “model code” for local franchising, zoning, permitting, and rights-of-way regulations for telecom infrastructure like cell towers. Few expect the eventual “model code” to stray far from Big Telecom companies’ wish lists;
  • Near-unilaterally loosened rules allowing AM radio stations to continue making their presence felt on the overcrowded FM band through the use of low-power FM “translator” stations that rebroadcast the AM station’s programming;
  • Changed FCC policies to give broader notice of upcoming agenda items and policy proposals, ostensibly to improve public access to FCC rulemaking procedures. But observers suggest the change will primarily benefit industry lobbyists who will have advance detailed notice about the FCC’s upcoming agenda items, allowing them time to lobby for or against the proposals, or suggest changes;
  • Rescinded “Improving the Nation’s Digital Infrastructure,” a policy paper promoting rural broadband deployment and other broadband improvements released just prior to the inauguration of President Trump. On Feb. 3, the FCC set “aside and rescinds the Digital Infrastructure Paper, and any and all guidance, determinations, recommendations, and conclusions contained therein. The Digital Infrastructure Paper will have no legal or other effect or meaning going forward.”
  • Rescinded “in its entirety and effective immediately, earlier guidance provided in a March 12, 2014, public notice, DA 14-330, “Processing of Broadcast Television Applications Proposing Sharing Arrangements and Contingent Interests,” which attempted to limit ongoing media consolidation controversies including allowing one TV station to effectively operate and provide content for so-called ‘competing’ stations in a local area.
  • Closed the FCC’s investigation into wireless carriers’ zero-rating policies, which allow subscribers free access to “preferred provider content” without it counting against their data plan. Critics call zero rating an end run around Net Neutrality, because providers treat their own content as “preferred.” AT&T charges other content providers to participate in its zero rating program.
  • Instructed the FCC’s legal team to stop defending court challenges to its authority to ensure fair and reasonable telephone rates for incarcerated prisoners held captive to using a single carrier to make phone calls at prices much higher than what the public pays. Those rates were as high as $5.70 for a 15-minute in-state collect call placed from an incarceration facility in Kentucky. In that state alone, consumers effectively paid $2.79 million in kickbacks to state prison systems or a county jail. In contrast, a similar 15-minute call placed from a West Virginia jail or prison would cost $0.48. As a result of Pai’s actions, companies like Global Tel*Link, Securus, and Telmate “can continue the practice of price gouging prisoners and their families,” according to Prison Phone Justice;
  • Ended former FCC Chairman Wheeler’s attempt to force competition in the cable set-top box marketplace, allowing consumers to take a bite out of the $20 billion cable companies make in rental fees annually. At least 99% of subscribers now pay an average of $231 a year to lease the boxes, even after the company has fully recouped their original cost. Customers in Canada can buy their own set-top boxes and DVRs.
  • Killed an expansion of the FCC’s Lifeline program to offer discounted internet access to the poor. Pai reversed approvals made to nine providers — none accused of waste, fraud, or abuse — including Kajeet, Spot On, Boomerang Wireless, KonaTel, FreedomPop, Applied Research Designs, Liberty Cablevision of Puerto Rico, Northland Cable Television and Wabash Independent Networks. Pai later defended the move claiming his predecessor rushed through approval of the providers and he was rescinding those “midnight rules” as current chairman. Many Republicans are seeking a complete elimination of the Lifeline program.
  • Rescinded the latest progress report on modernizing the Universal Service Fund’s E-Rate program, which is designed to subsidize telecom services for schools and libraries. It could be the first step in eliminating or dramatically reforming the Fund;
  • Gave two violators of the FCC’s rules on properly collecting and reporting information about the source of political advertising aired on stations air a free pass.
  • Threw out a white paper from the FCC’s own Homeland Security Bureau advising the agency on cybersecurity issues. Pai doesn’t think the FCC should be involved in cybersecurity, so anything contrary to his agenda of reducing the role of the FCC is likely destined for the nearest wastepaper basket.

FCC letter to AT&T’s Bob Quinn letting him know the company is off the hook with the FCC on zero rating.

“Ajit Pai has been on the wrong side of just about every major issue that has come before the FCC during his tenure,” said Craig Aaron, president of Free Press. “He’s never met a mega-merger he didn’t like or a public safeguard he didn’t try to undermine. He’s been an inveterate opponent of Net Neutrality, expanded broadband access for low-income families, broadband privacy, prison-phone justice, media diversity and more. If Trump really wanted an FCC chairman who’d stand up against the runaway media consolidation that he himself decried in the AT&T/Time Warner deal, Pai would have been his last choice — though corporate lobbyists across the capital are probably thrilled.”

Time Warner Cable Transition to Charter Brings Bill Shock, $200 Upgrade Fee

Higher bills, confusing and conflicting services and pricing, and badly trained customer service representatives are just a few of the problems afflicting customers transitioning from Bright House Networks and Time Warner Cable to service plans being gradually introduced around the country by Charter Communications/Spectrum. Stop the Cap! has collected more than 50 reports from customers experiencing problems, bill shock, lost access to Wi-Fi hotspots, and “bait and switch” promotions promised by one representative only to be reneged on later when the first bill arrives.

The $58/Month Charter Spectrum Rate Hike

Park La Brea resident Lydia Plona is one of dozens of customers in California that have complained to the Los Angeles Times about their soaring cable bills after Charter/Spectrum replaced Time Warner Cable in Southern California. It was among the first regions in the country to say goodbye to Time Warner Cable and hello to Charter and their Spectrum-branded service plans. Unfortunately, Charter has already worn out its welcome with customers like Plona. When Charter was done with her, the $96 Time Warner Cable bill she used to pay was replaced with a new $154 bill from Spectrum — a $58 rate hike per month, which amounts to almost $700 more a year.

Much of the Midwest just completed its transition away from Time Warner Cable and Bright House to Spectrum and confusing pricing and plans and expensive upgrade fees are troubling customers from Wisconsin to Ohio.

Want More than 60Mbps? Pay $199 Upgrade Fee

Micah Lane, a former Time Warner Cable customer in Columbus, Ohio faced a major dilemma — should he switch from his current Time Warner Cable broadband plan to Spectrum? He originally assumed the answer would be yes, believing he could upgrade from a 50/5Mbps Time Warner Cable plan to a 100Mbps Spectrum plan for around $30 more than he had paid Time Warner. He discovered an upgrade was ready and waiting, but would cost him a one-time $199 upgrade fee.

“I was told repeatedly when a Time Warner Cable customer moves to Spectrum, they are automatically assigned a base plan of 60Mbps,” Lane told us. “Any speed above that in a non-Time Warner Cable Maxx market is considered an upgrade subject to the $200 upgrade fee. My parents would not be happy with that on their bill.”

Stop the Cap! has communicated with a dozen Spectrum converts, and heard from at least 40 others about problems experienced with their plan transitions. The most common complaints reference a hard-to-avoid $200 broadband upgrade fee, charged even when moving from a 100Mbps Time Warner Cable plan to a 100Mbps Spectrum plan, and promised bundled package offers that ended up costing much more when the first bill arrived.

Charter’s standard broadband plan offers 60Mbps service.

“You better be ready for the fight of your life because I had to threaten to escalate my complaint to the Better Business Bureau and the FCC to get that $200 fee off my bill,” said Stop the Cap! reader Roger. “Nobody ever told me about the fee but it was applied to my online statement hours after I changed plans and of course there is no way to go back to Time Warner’s plans once you make the change.”

Charter/Spectrum has become increasingly intransigent about that $200 fee, which the company claims is necessary to verify your home connection is suitable for faster internet speeds. But some representatives have also blamed the fee on the need to recoup expenses from network upgrades, even when many of those upgrades were performed by Time Warner Cable before the company was sold.

“There is really massive confusion at Charter and the information you get is totally inconsistent from one operator to the next,” said Paul Friedrich in Cincinnati. He rents an apartment with a roommate and after being told the $200 upgrade fee was non-negotiable, he told Charter to stuff it. “We can get the same or better service without the upgrade fee from Cincinnati Bell so bye bye Spectrum. When we threatened them with canceled service, however, the fee magically disappeared!”

The “savings” Charter promised to bring Time Warner Cable customers have not exactly materialized in Ohio, either.

“I just called TWC/Spectrum to see if I could get upgraded internet,” wrote DSL Reports reader cmiz87 in Grove City. “I’m currently on the old 50/5Mbps plan. To upgrade to the 100/10Mbps plan would cost $104.99/month PLUS a $199.99 “activation” fee, even though I have my own modem. That is just for internet only.”

Especially aggravating to many Time Warner Cable customers in non-Maxx service areas is the special treatment Maxx customers received when their areas were converted to Charter Spectrum. Customers with at least 200Mbps service were initially transitioned from their Time Warner Cable Maxx service plans to Charter Spectrum’s 300Mbps plan without any upgrade fee. For those areas where the clock ran out waiting for Maxx upgrades when Charter completed its deal to acquire Time Warner Cable, it’s ‘pay $200 or no upgrade for you.’

“Customers in northern Kentucky [were already getting] 300Mbps service as a free upgrade for the last six months,” noted DSL Reports reader dougm0. “Last year Time Warner Cable was going door-to-door in my neighborhood in Cincinnati [telling us] you will get 300Mbps service free in a couple of months. Just two weeks ago I chatted with a rep that said I would still get a 300Mbps upgrade automatically when launched.”

Now Charter/Spectrum is charging what he calls “this bogus $200 fee.”

“My wife and I are planning our exit from Charter and going back to Cincy Bell,” he reports. “Free install and same speed for less.”

Business Class for 300Mbps

In Reno and other cities, some Charter customers are moving to Business Class service to get 300Mbps service, which is not yet available in most former Time Warner Cable areas. But it will not be cheap. New customers can sign up with a promotion for as little as $159/month, but after two years that price jumps to $279.

Residential Pricing Confusion

Charter’s residential pricing seemed simple enough when it was announced. But in practice, readers report it is all over the map. In Wisconsin, one customer in Franklin signed up for 300Mbps service for $110 per month and agreed to pay the $200 upgrade fee. But in Green Bay, Spectrum is charging $110 a month for 100Mbps — half the speed — along with the $200 upgrade fee. That was a dealbreaker. In Kenosha, one customer moving from a Time Warner Cable internet plan to Charter Spectrum’s basic 60Mbps plan found two unpleasant surprises on his bill:

01/19/2017 Change Of Service Fee $52.74
01/19/2017 Spectrum WiFi Activation $10.54

Adding even more confusion were prices quoted to another customer in West Wauwatosa:

  • Ultra: 300/20Mbps, $105/mo, $199.99 upgrade fee
  • Regular: 60/5Mbps, $68.63/mo, no upgrade fee

Confusion for Some Legacy Time Warner Cable Customers As Well

A surprise last upgrade for Time Warner Cable customers in Rochester, N.Y.

In markets that still have not transitioned to Charter Spectrum, there is confusion to be found there as well. Upstate New York will see an introduction to Spectrum service plans in February-March, but a few Time Warner Cable upgrades have been quietly introduced in the meantime. Rochester, N.Y., which never made it officially to the Maxx city upgrade list, now has 100Mbps broadband as an option, but representatives denied it for at least a week when customers called to upgrade.

The new speed option was supposed to only be offered to customers qualified to get it, as upgrades were gradually completed around the area, but a website issue marketed the upgrade to everyone, including to some customers as far away as Buffalo.

For those successfully signing up with what is likely to be their last Time Warner Cable plan, many are hoping the investment will help them avoid the $200 upgrade fee when Spectrum’s 100Mbps plan becomes available in the next month or two. But some former Time Warner Cable customers in other cities already transitioned and two Charter representatives we queried about this scenario say they will be out of luck.

Customers start with a 60Mbps standard internet plan from Charter in non-Maxx areas. If a customer chooses a higher speed plan, even if they had 100Mbps from Time Warner Cable before, the $200 upgrade fee still applies. Both representatives claimed the fee was mandatory.

But some of our readers report success in getting that fee off their bills or it was never charged. Speaking to a supervisor or making a service change with an executive level customer service representative can make a big difference avoiding that fee. Customers who establish contact with a Charter representative as a result of a Better Business Bureau or FCC complaint were able to get the fee consistently waived. Results were more mixed when talking to Charter Spectrum’s regular sales department, even when asking for a supervisor to intervene. It may be a case of finding a representative with the authority to waive the fee.

“Even the representative agreed with us it was unfair to charge us $200 for moving from 100Mbps with Time Warner Cable to 100Mbps with Charter Spectrum,” another Stop the Cap! reader in Texas told us. “But they couldn’t do anything about it. When we threatened to cancel, a retention representative finally intervened and got the fee off the bill, only to have it return a month later. We filed a complaint with the Better Business Bureau and that finally worked to get the fee removed. But my neighbor couldn’t get anyone to budge on that fee.”

Wi-Fi Woes in Florida

Bright House Networks customers are also experiencing transition troubles. Residential customers reportedly lost any static IP addresses they signed up for when they converted to a Charter Spectrum residential plan. Static IP addresses are still available for Spectrum commercial plans. More troubling for many is the loss of access to Bright House Network’s secure Wi-Fi network.

Customers in central Florida who switched from a Bright House plan to a Charter Spectrum plan lost access to “BHN Secure,” “Bright House Networks,” and secured “CableWiFi” hotspots formerly administered by Bright House. Customers used to access those secure networks using their My Services Bright House username and password. But after transitioning to a Charter Spectrum plan, those credentials no longer work. Customers can still use their Bright House Road Runner e-mail address and password to get access to the very insecure open “CableWiFi” hotspot option, but those doing so should exercise extreme caution using it for any confidential communications, banking, or other sensitive online activities.

Charter’s Bad Advice: Change Your Wi-Fi Password to Your Favorite Sports Team!

Techcrunch noticed some very bad advice coming from Charter’s social media team on Twitter, recommending their 31,700 Twitter followers change their Wi-Fi passwords in support of their favorite sports teams.

Change your WiFi password and show guests where your loyalty lies! #ThatsMyTeampic.twitter.com/7kg04D7GN9

— Spectrum (@GetSpectrum) January 23, 2017

The original tweet has been deleted, no doubt after someone realized the dangerous security lapse it introduced to Wi-Fi hackers who could probably guess the favorite teams of the locals.

The FrankenBundle: Fewer Options, Less Confusion, Higher Prices Later

In Indianapolis, former Bright House Networks customers are being told having fewer options is a good thing.

WRTV-TV talked with Charter spokesman Mike Pedalty, who called his former employer’s packages a “Frankenbundle:”

“We kept adding things and confusing customers, where they didn’t understand what we were adding on and how it was packaged,” Pedalty told the TV station. Now he says most customers will choose from three basic TV packages and ‘best of all you won’t have to fight for a promo rate every year, when your current package expires.’

That’s because Charter has no intention of negotiating a better deal for you as prices gradually increase.

Back in Los Angeles, Plona understands what merger benefits she is really getting from the deregulatory atmosphere that permitted Charter to buy Time Warner Cable.

“When you let these companies do as they please, all they do is raise our rates,” Plona said. “It seems like prices go up every time you deregulate.”

Election 2016: Trump Victory Troublesome for Tech Issues

Phillip Dampier November 10, 2016 Editorial & Site News, Public Policy & Gov't 7 Comments

donaldtrumpThe stunning victory by Donald Trump in Tuesday’s election ended two years of campaigning, negativity, and divisiveness.

Wednesday probably marked the beginning of Election 2020, which will involve four years of campaigning, negativity, and divisiveness.

Before looking at the implications of the forthcoming Trump Administration, some personal words about the results from the perspective of a lifelong resident of western New York, on the periphery of the Rust Belt region that evidently made all the difference for Mr. Trump on Tuesday night.

Casting my vote here in western New York while suffering a severe cold that has now evolved into walking pneumonia, I reflected on the fact this nasty election probably gave it to me. Despite that, I have the good fortune of living in a diverse community. Our next door neighbor, and by far the closest to us personally, is an ardent Republican who supported Sen. McCain, Gov. Romney, and Mr. Trump. Across the street, a reliable panoply of Democratic candidate lawn signs sprout every other fall. I spend my Friday afternoons in a community south of Rochester where Hillary Clinton has been largely reviled since she was a senator of New York. She didn’t win in Ontario County this year either. But Sen. Chuck Schumer routinely wins his elections with little effort or opposition.

Politics in the western half of New York State (known as “somewhere around Canada” to those in New York City and Long Island) is far more comparable to the battleground state of Ohio than reliably Democratic Manhattan. Our urban centers in Buffalo, Rochester, and Syracuse are solidly Democratic, while the suburbs and rural areas are just as likely to elect Republicans to office. Among those disappointed Democrats pondering a surprising election of Donald Trump, many cannot understand how such a result is possible. But having been a lifelong resident in a region that has seen profound changes from the decimation of blue-collar, high-paying manufacturing jobs in states that still cling to tax rates that assume everyone still has one, the Trump rebellion predicted by Michael Moore was hardly outlandish. Across the Rust Belt, more than a few voters have given up believing politicians, and are still waiting for relief from the relentless pressure on the declining middle class. Some of the worst job declines came in this region during the first Bush Administration and then again under President Bill Clinton. Memories are still fresh.

The changes to local economies in this region are profound and extremely difficult to navigate for those who lack advanced degrees or special technical skills. A state like North Carolina understands these changes well. An economy quickly transformed away from tobacco and textiles towards high technology created enormous challenges for many families. Those problems still exist in many parts of the state where infrastructure and good jobs are still lacking more than two decades later.

In Rochester, the formerly solid and reliable employers like Eastman Kodak and Xerox are a fraction of the size they were in the 1980s. My father met my mother at Eastman Kodak, a company that also employed more than half my extended family. But not for long. I vividly recall watching the inauguration parade of President Bill Clinton on television in 1993 on a day that Eastman Kodak carried out another wave of draconian job cuts. My father’s job survived, but my uncle’s did not. My grandfather had retired by then.

Michael Moore correctly predicted the reality of a Trump victory with the support of a disaffected middle class in economically distressed states.

Michael Moore correctly predicted the reality of a Trump victory with the support of a disaffected middle class in economically distressed states.

Twenty-three years later, the largest employer by far in this area is the University of Rochester/UR Medicine, which includes the university and an enormous medical treatment infrastructure. Together, this accounts for 22,500 workers. The second largest employer in Rochester is a grocery store. A great grocery store — Wegmans, founded and based here, but a grocery store nonetheless. It accounts for 13,500 jobs. Another 13,000+ workers are employed in medical treatment and hospital services that compete with the U of R. Rounding out top employers are the Rochester City School District with 5,500 teachers, administrators and staff, which is almost as big as Monroe County’s government, which accounts for 4,500 employees. The biggest remaining manufacturer is Xerox, which employs 6,300 workers. But consider this contrast: in 1982 Kodak employed 60,400 in the Rochester area. Today, that number is just 2,300.

Rochester had it easy compared to heavy manufacturing cities to our west. Buffalo, western Pennsylvania, Ohio, and Michigan have been walloped twice — first by the offshoring of heavy industry and then a second round of manufacturing job losses many voters blame on various free trade agreements. Many tens of thousands of these displaced workers have relocated to other states. Exiting residents of Rochester overwhelmingly prefer North Carolina and Arizona for various reasons, while blue-collar workers further west often end up in Kentucky, Tennessee, Alabama, and other southern states. Many of those that remained behind and remember their old jobs are angry, very angry. Some of them supported Bernie Sanders, especially in Michigan. But once the choice came down to Hillary Clinton or Donald Trump, more than a few voted for Mr. Trump, not out of a great allegiance to the Republican party, but because Trump vilified free trade and business as usual in D.C. To these voters, fair or not, Hillary seemed to embody the establishment that has done little or nothing except make speeches.

The election is now over and we have the results. My candidate did not win because she did not run. (Elizabeth Warren in 2020!) On the broadband issues Stop the Cap! is concerned with, a Trump Administration is likely to be bad news for consumer protection, fair pricing, and community broadband, primarily because the people Mr. Trump has chosen thus far to advise him on tech issues are the usual sort with close ties to the largest telecommunications companies in the country, and many have penned papers that have closely aligned with those companies’ public policy positions.

Phillip Dampier: This election gave me walking pneumonia.

Phillip Dampier: This election gave me walking pneumonia.

Trump transition team adviser Jeffrey Eisenach, for example — who we wrote about back in August, could hold considerable power over the direction President-elect Trump will take tech policy in this country. Eisenach has written papers opposing Net Neutrality, is unconcerned about data caps and zero rating policies, and called fears about consolidation blowouts like the now-dead Comcast-Time Warner Cable mega-merger overblown.

Trump did state opposition to the recent merger announcement from AT&T and Time Warner, Inc., which has Wall Street concerned the deal will be DOA by the time the merger papers are filed sometime early next year in Washington. If President Trump keeps his word on that, there are many more mergers and acquisition deals that will emerge in 2017 that will likely never be on his radar, but will be reviewed by a Federal Communications Commission stacked with commissioners closer in ideology to Ajit Pai and Michael O’Rielly than Thomas Wheeler. In our view, Commissioners Pai and O’Rielly have yet to support any significant pro-consumer policy change on broadband before the FCC. Instead, they have largely parroted Big Telecom’s talking points.

It is our suspicion that most of the merger and acquisition deals dreamed about on Wall Street that would never have gotten through the Obama Administration’s Justice Department and FCC will receive quick approval under a Trump Administration.

While Mr. Trump alludes he will prove to be a complete game-changer to business as usual in Washington, his transition team is being swarmed by the usual faces — corporate lobbyists, big donors, and political hacks angling for cabinet or agency positions. Most of them are Beltway insiders, and many have been through D.C.’s revolving door before — lobbyist -> public servant -> lobbyist.

So while Mr. Trump tells America AT&T and Time Warner is “too much concentration of power in the hands of too few,” we remain uncertain he will speak as loudly about other likely deals, particularly involving Altice, Cox, Mediacom, CenturyLink, Windstream, Frontier, Sprint, and T-Mobile — just some of the hunters and the hunted that may get consolidated in 2017.

On other issues:

  • Net Neutrality: Republicans vilified Net Neutrality and a Republican-dominated FCC will likely kill or dramatically downplay any efforts to enforce it. Trump himself has never been a fan. Any new powers won by Chairman Wheeler to regulate internet providers under Title II will also likely be jettisoned by a Chairman Pai or O’Rielly;
  • Data Caps/Zero Rating: This issue is important to us, but isn’t likely to see any regulatory action under a GOP-dominated FCC. Internet providers are likely to see a Trump Administration as a green light for data caps and consumption billing;
  • Internet Privacy: Efforts to regulate internet privacy will also likely face a reversal from skeptical Republicans who will combine excuses for national security with a “hands off” attitude on telecommunications regulation.
  • Community Broadband: The issue of turning back bans on public/municipal broadband will have to be won on the state level. We do not expect to see many friends for municipal broadband in Republican-dominated Washington. The influence of the Koch Brothers, notoriously opposed to public internet projects, has only gotten stronger after this election.

With a GOP-sweep across the Executive and Legislative branches, we expect more deregulation, which is likely to further entrench the broadband duopoly in the United States, if not further expand it with additional consolidation-related mergers and acquisitions, at least among the small and mid-sized players.

On a more personal level, I have been involved in public policy battles surrounding telecommunications issues since 1988. In the late 1980s, I fought for increased competition and regulatory relief for home satellite (TVRO) dishowners and we joined forces to help pass the 1992 Cable Act, which laid the foundation for the emergence of competitors DirecTV and Dish Networks — the first serious competition to the cable industry. That law was vetoed by President George H.W. Bush, but that veto was overridden by the U.S. Congress — the only bill to successfully become law during the first Bush Administration over his objection. Republicans pay cable bills too.

(Image courtesy: Steve Rhodes)

(Image courtesy: Steve Rhodes)

Administrations come and administrations go, but we are still here.

The need for robust consumer protection, true competition, and a level playing field never changes. Your involvement remains essential regardless of what party is in power in Washington. Some battles will be more challenging, but not all. Direct consumer action can make an impact on companies concerned about their brand and public image. Just as consumers are passionate about rising cable bills, broadband is always a hot button issue, especially where service is unavailable or comes only at a price that resembles extortion.

The president-elect says that America doesn’t win anymore. We sure haven’t been winning on broadband, either on speed, pricing, or availability, in comparison to Europe and Asia. The solution is not to turn the problem over to the same companies that created the conditions for broadband malaise we are dealing with now. As seen in fiercely competitive markets like France, true competition is often the only regulation you need. A duopoly answers to itself. Having the choice of four, five, six, or more competing providers answers to customers. Consolidated and entrenched markets resist innovation and the need to compete stagnates. Corporate welfare and ghost-written telecom laws that forbid community broadband restricts economic growth and kills jobs, stranding countless rural residents from the digital economy. That -is- business as usual in too many states where groups like the American Legislative Exchange Council (ALEC) facilitate legislative fixes and legal protectionism that restricts or disadvantages competition.

If Mr. Trump truly believes the words he has spoken, he must be vigilant. He must not surround himself with the same politicians and their minders that created the very problems he promises to fix. The voters that elected him to office expect nothing less than blowing up business as usual. But the nation’s capital has a better track record of changing the politician while resisting change to the status quo.

We wish President Trump success for our country, but we’ll be watching to make certain his rhetoric meets the reality.

Charter, AT&T At War With Google in Louisville Over Pole Access

att poleStall, stall, stall. While Charter Communications and AT&T are working towards improving their broadband service offerings for Kentucky’s largest city, both companies are doing everything possible to slow down the arrival of their nemesis: Google Fiber, which is preparing to wire Louisville for gigabit fiber to the home service.

This past February, Louisville Metro Council unanimously passed a new ordinance called “One Touch Make Ready,” designed to streamline telecom provider access to utility poles, which are getting crowded with at least three telecom companies vying for consumers’ business. The ordinance was passed with the support of Google, which seeks a minimum of red tape from local permit and zoning bureaucracies and its competitors while network engineers begin installing fiber optics across the city. Installing Google Fiber on utility poles may involve moving other providers’ wiring to make room for Google, which in some cases could mean 4-5 different utility companies having to visit each pole to move their wiring. In the past, Google asked the pole owner for access, which has not always been forthcoming on a timely basis. The new ordinance requires the pole owner to respond to access requests within 30 days. If no response is forthcoming, Google can approach the city for a permit to hire a contractor to do all the relocation work on their behalf.

“Such policies reduce cost, disruption, and delay, by allowing the work needed to prepare a utility pole for new fiber to be attached in as little as a single visit—which means more safety for drivers and the neighborhood,” Google wrote on its blog. “This work would be done by a team of contractors the pole owner itself has approved, instead of having multiple crews from multiple companies working on the same pole over weeks or months. One Touch Make Ready facilitates new network deployment by anyone—and that’s why groups representing communities and fiber builders support it, too.”

Louisville, Ky. (Image: Chris Watson)

Louisville, Ky. (Image: Chris Watson)

About two weeks after the ordinance passed, AT&T made it clear they did not support it and took the city to court, claiming it had no right to regulate its utility poles.

“Louisville Metro Council’s recently passed ‘One Touch Make Ready’ Ordinance is invalid, as the city has no jurisdiction under federal or state law to regulate pole attachments,” said AT&T spokesman Joe Burgan. “We have filed an action to challenge the ordinance as unlawful. Google can attach to AT&T’s poles once it enters into AT&T’s standard Commercial Licensing Agreement, as it has in other cities. This lawsuit is not about Google. It’s about the Louisville Metro Council exceeding its authority.”

Time Warner Cable (now Charter Communications) joined AT&T, adding the city is violating the cable company’s corporate constitutional rights by effectively seizing their property (cable lines) and granting a right for third parties to manipulate, move, or manage those lines without Time Warner Cable’s permission.

“The ordinance is simply unworkable,” said Time Warner Cable’s attorney Gardner Gillespie, a partner in the D.C. law firm Sheppard-Mullin. “It does not provide any meaningful way for Time Warner Cable to know what changes have been made to its existing facilities or to assure any damage is promptly cured.”

google fiberGillespie also claimed customers could endure poorer service and outages as a result of unauthorized contractors relocating Time Warner Cable’s equipment, often without the cable company’s knowledge.

City officials dismissed the concerns, but failed to get either lawsuit dismissed.

Charter executives have also opened a new opposition front against Google Fiber’s presence in the city, accusing city officials of unfairly favoring the search engine giant while continuing to burden Charter with a franchise agreement that requires the cable company to provide free cable in city buildings and offer channel space and studio facilities for the city’s Public, Educational, and Government Access channels.

At present, Google is not obligated to provide any of those services and has also won a unique regional franchise that covers the city of Louisville and nearby suburbs in a single agreement. The Metro Council has also granted Google its own public right-of-way access for installing various communications infrastructure. Both AT&T and Charter claim they are only getting involved because they believe they should be given equal treatment. Critics contend they are attempting to slow down Google Fiber, which could begin offering service by fall of 2017.

Time Warner Cable began offering Maxx-upgraded service in March 2016, offering residents up to 300Mbps. AT&T is gradually expanding its U-verse with GigaPower gigabit broadband service in locations around Louisville.

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