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Comcast Prepares to Launch All-Out Attack on C Spire’s Irritating Competition in Mississippi

comcast crushThe sleepy deep south isn’t often a battleground for an all-out broadband competition war, but Ridgeland, Miss.-based C Spire, a regional cell phone company with fiber broadband aspirations, has gotten too big for its britches and Comcast is preparing to demonstrate its size and resources can run even a home state provider into the ground.

C Spire is building a statewide fiber-to-the-home network, city by city, on its pre-existing fiber backbone which extends to C Spire’s cell towers across the Magnolia State. As the fiber network expands, talk of doing something in a “Mississippi Minute” will be a thing of the past as C Spire prepares to deliver gigabit broadband speeds far in excess of what competitors like Comcast, AT&T and Cable One are prepared to offer.

Communities already on the construction list include: Batesville, Clinton, Corinth, Hattiesburg, Horn Lake, McComb, Quitman, Ridgeland and Starkville.

But C Spire’s network caught the attention of Comcast earlier this month when it announced Jackson, the state capital, was going to get fiber service.

C Spire is following Google Fiber’s model, attempting to get enough residents in a neighborhood to pre-register with a refundable $10 deposit. Online pre-registration for the service began in Jackson last month, and several hundred residents applied even before the fiber network expansion was announced, ready to tell Comcast to take a hike.

Jackson neighborhoods that reach sign-up levels set by C Spire will be the first to get the new generation of fiber services, the company says.

“Gigabit infrastructure can create a new economic reality for the city of Jackson,” Duane O’Neill, president & CEO of the 2,100-member Greater Jackson Chamber Partnership, told the Mississippi Business Journal. “In the handful of U.S. cities where this infrastructure is deployed and widely available, it has generated thousands of jobs, millions of dollars of new investment, boosted home values and improved the overall quality of life.”

c spire fiberC Spire’s plans could cost Comcast a significant number of cable customers across Mississippi, and it isn’t taking that lightly.

Departing from its usual tradition of focusing new technology on large northeastern cities, Comcast will begin saturating Jackson with its Wi-Fi hotspot service, starting with 200 public hotspots slated for launch before the end of this year. The company only had a handful of Wi-Fi hotspots in Jackson before. Jackson will also get significant cable service upgrades, including the introduction of a new “smart home” service, a cloud-based service integrating Comcast’s cable, Internet, and home-security.

Comcast says it has plans to turn Jackson into a “truly connected city,” and if that means competitively disconnecting C Spire from its nascent fiber customer base, all the better.“This is the kind of threat that would frighten competitors,” said industry observer Jeff Kagan. “Comcast can be a heavy-duty competitor when they want to be. So why is Jackson and other Mississippi cities getting this kind of attention from Comcast and C Spire? I think it’s a matter of competition and C Spire’s aggressive move in the state of Mississippi played a role in the Comcast decision to turn up the heat.”

Kagan also expects Comcast will cut prices to undercut C Spire. That would be consistent with Comcast’s customer retention policies that dramatically lower rates for customers threatening to leave. Rate-cutting will benefit consumers, but if Comcast engages in below-cost predatory pricing, those savings will be short-lived.

“It’s starting to look like that old nursery rhyme, Jack and the Beanstalk,” said Kagan. “Watch out Jack, the Giant is waking up.”

If that battle becomes cut-throat, C Spire’s fiber aspirations may end up nothing more than pipe dreams if the company retreats, deciding it cannot survive in a battle with Comcast, the Giant of all cable companies.

Frontier Faces Lawsuit in West Virginia Alleging False Advertising, Undisclosed DSL Speed Throttling

The slow lane

The slow lane

Frontier Communications customers in West Virginia are part of a filed class-action lawsuit alleging the phone company has violated the state’s Consumer Credit and Protection Act for failing to deliver the high-speed Internet service it promises.

The lawsuit, filed in Lincoln County Circuit Court, claims Frontier is advertising fast Internet speeds up to 12Mbps, but often delivers far less than that, especially in rural areas where the company is accused of throttling broadband speeds to less than 1Mbps. The suit also alleges Frontier’s broadband service is highly unreliable.

“The Internet service provided by Frontier does not come anywhere close to the speeds advertised,” wrote Benjamin Sheridan, the Hurricane lawyer filing the lawsuit on behalf of three Frontier customers. The attorney is seeking to have the case designated a class action lawsuit that would cover Frontier customers across the state.

“Although we cannot guarantee Internet speeds due to numerous factors, such as traffic on the Internet and the capabilities of a customer’s computer, Frontier tested each plaintiff’s line and found that in all cases the service met or exceeded the ‘up to’ broadband speeds to which they subscribed,” Frontier spokesperson Dan Page told the Charleston Gazette. “Nonetheless, the plaintiffs filed their case in Lincoln County, where none of them lives. If necessary, we are prepared to defend ourselves in court and bring the facts to light.”

Frontier’s general manager in West Virginia, Dana Waldo, may have helped the plaintiffs when he seemed to admit Frontier was purposely throttling the Internet speeds of its customers, a move Sheridan claims saves Frontier “a fortune” in connectivity costs with wholesale broadband providers like Sprint and AT&T.

Sheridan

Sheridan

“If as you suggest, we ‘opened up the throttle’ for every served customer, it could create congestion problems resulting in degradation of speed for all customers,” according to Waldo as part of an email exchange with one of the class members cited in the lawsuit.

The lawsuit also cites a state report issued over the summer that found just 12 percent of Frontier customers receive Internet speeds that actually qualify as “broadband” under federal and state standards. Frontier’s speed ranking is the slowest of any provider in the state. That is especially significant because Frontier is the largest ISP in West Virginia, and is often the only choice rural residents have for broadband service.

Frontier dismissed the state’s report claiming it was based on voluntary speed tests performed by disgruntled customers.

“As we’ve said before, the speed tests are the result of self-selected, self-reported samples,” Page said. “People who take speed tests tend to be those with speed problems or low speeds.”

“Even if that were true, it doesn’t account for Frontier’s poor performance,” said Frontier customer William Henley. “If every person that ran a speed test in West Virginia was annoyed with their provider, Frontier still came in last place.”

Frontier’s competitors scored better:

  • lincoln countyComcast: 88% of customers met or exceeded state and federal standards;
  • Suddenlink Communications: 80%
  • Time Warner Cable: 77%
  • Shentel: 71%
  • Armstrong Cable: 67%
  • LUMOS Networks: 44%

“…Frontier’s practice of overcharging and failing to provide the high-speed, broadband-level of service it advertises has created high profits for Frontier but left Internet users in the digital Dark Age,” Sheridan wrote. “As a result, students are prevented from being able to do their homework, and rural consumers are unable to utilize the Internet in a way that gives them equal footing with those in an urban environment.”

Sheridan also accused Frontier of delivering its fastest speeds only in areas where it faces competition. Where there is none, Frontier can afford to go slow.

But slow speed is not the only issue. One plaintiff — April Morgan in Marion County — says she has to reset her modem up to 10 times a day to stay connected to the Internet. Her modem has been replaced several times by Frontier, but that has done little to solve her problem.

Frontier customers who check the company’s terms of service agreement may question whether Sheridan can get very far suing the company. A clause in the contract states customers must settle disputes only through binding arbitration or small claims court. Individual lawsuits, jury trials, and class-action cases are prohibited.

Sheridan points out customers have to go online to read the agreement – it is not provided to customers signing up for Internet service. A contract that forces customers to agree to its terms without getting informed consent may turn out not very binding under West Virginia law.

Lincoln County Judge Jay Hoke, assigned to hear the case, will likely face that matter in pre-trial motions.

West Virginia residents interested in the class action case can register here for updates.

South Korea Prepares for 10Gbps Broadband; Transfer 1GB File in 0.8 Seconds

Phillip Dampier October 14, 2014 Broadband Speed, Consumer News, Public Policy & Gov't 42 Comments

sk 10 gigWhile AT&T and Verizon argue over an FCC proposal that would set 10Mbps as America’s new minimum speed to qualify as “broadband,” South Korea is positioning itself to introduce 10Gbps fiber service.

SK Broadband will introduce its new 10 gigabit per second Internet service at the Oct. 20 Plenipotentiary Conference of the International Telecommunications Union to be held at Busan’s BEXCO Center, in partnership with the Ministry of Science, ICT and Future Planning and the National Information Society Agency.

With the latest advances in broadband technology coming mostly from Asian countries like Japan and South Korea, citizens of both countries are proud of the fact they are way ahead of the United States.

“In the 1960s the world watched NASA send men to the moon and many of us grew up amazed at the constant advancements of the Americans,” said Natsuki Kumagai. “Now the Americans watch us.”

“In my travels to the United States, it is very plain they have lost their way in advancing broadband technology,” said Pyon Seo-Ju. “Internet access is terribly slow and expensive because American politicians have sacrificed Americas’s technology leadership to protect conglomerates and allow them to flourish. Although unfortunate for America, this has given Korea a chance to promote our own industry and enhance the success of companies like Samsung that are well-known in the United States today.”

SK Broadband says its 10Gbps will be 100 times faster than Korea’s current average broadband speed of 100Mbps. Downloading a 1GB file takes 80 seconds with Korea’s average broadband connection today. SK’s new 10Gbps service will download the same file in 0.8 seconds.

The broadband company’s booth doesn’t hold back touting its global leadership in broadband, with the slogan “World’s Fastest, World’s First” seen throughout the conference center.

Marsha Blackburn Angry that FCC Chairman Wants to Run Tenn. Broadband… When AT&T Should

Rep. Marsha Blackburn (R-Tennessee, but mostly AT&T and Comcast)

Rep. Marsha Blackburn (R-Tennessee, but mostly AT&T and Comcast)

Rep. Marsha Blackburn (R-Tenn.) is angry that FCC chairman Tom Wheeler is sticking his nose into AT&T, Comcast, and Charter Communications’ private playground — the state of Tennessee.

In an editorial published by The Tennessean, Blackburn throws a fit that an “unelected” bureaucrat not only believes what’s best for her state, but is now openly talking about preempting state laws that ban public broadband networks:

Legislatures are the entities who should be making these decisions. Legislatures govern what municipalities can and cannot do. The principles of federalism and state delegation of power keep government’s power in check. When a state determines that municipalities should be limited in experimenting in the private broadband market, it’s usually because the state had a good reason — to help protect public investments in education and infrastructure or to protect taxpayers from having to bailout an unproven and unsustainable project.

Chairman Wheeler has repeatedly stated that he intends to preempt the states’ sovereign role when it comes to this issue. His statements assume that Washington knows best. However, Washington often forgets that the right answers don’t always come from the top down.

It’s unfortunate Rep. Blackburn’s convictions don’t extend to corporate money and influence in the public dialogue about broadband. The “good reason” states have limited public broadband come in the form of a check, either presented directly to politicians like Blackburn, who has received so many contributions from AT&T she could cross daily exercise off her “things to do” list just running to the bank, or through positive press from front groups, notably the corporate-funded American Legislative Exchange Council (ALEC).

According to campaign finance data compiled by the Center for Responsive Politics, three of Blackburn’s largest career donors are employees and PACs affiliated with AT&T, Comcast and Verizon. Blackburn has also taken $56,000 from the National Cable & Telecommunications Association, the lobby for the big telecoms.

Combined, those organizations donated more than $200,000 to Blackburn. In comparison, her largest single donor is a PAC associated with Memphis-based FedEx Corp., which donated $68,500.

Phillip "States' rights don't extend to local rights in Blackburn's ideological world" Dampier

Phillip “States’ rights don’t extend to local rights in Blackburn’s ideological world” Dampier

Blackburn’s commentary tests the patience of the reality-based community, particularly when she argues that keeping public broadband out protects investments in education. As her rural constituents already know, 21st century broadband is often unavailable in rural Tennessee, and that includes many schools. Stop the Cap! regularly receives letters from rural Americans who complain they have to drive their kids to a Wi-Fi enabled parking lot at a fast food restaurant, town library, or even hunt for an unintentionally open Wi-Fi connection in a private home, just to complete homework assignments that require a broadband connection.

Blackburn’s favorite telecommunication’s company — AT&T — has petitioned the state legislature to allow it to permanently disconnect DSL and landline service in rural areas of the state, forcing customers to a perilous wireless data experience that doesn’t work as well as AT&T promises. While Blackburn complains about the threat of municipal broadband, she says and does nothing about the very real possibility AT&T will be allowed to make things even worse for rural constituents in her own state.

Who does Blackburn believe will ride to the rescue of rural America? Certainly not AT&T, which doesn’t want the expense of maintaining wired broadband service in less profitable rural areas. Comcast won’t even run cable lines into small communities. In fact, evidence has shown for at least a century, whether it is electricity, telephone, or broadband service, when large corporate entities don’t see profits, they won’t provide the service and communities usually have to do the job themselves. But this time those communities are handcuffed in states that have enacted municipal broadband bans literally written by incumbent phone and cable companies and shepherded into the state legislature through front groups like ALEC.

Chairman Wheeler is in an excellent position to understand the big picture, far better than Blackburn’s limited knowledge largely absorbed from AT&T’s talking points. After all, Wheeler comes from the cable and wireless industry and knows very well how the game is played. Wheeler has never said that Washington knows best, but he has made it clear state and federal legislators who support anti-competitive measures like municipal broadband bans don’t have a monopoly on good ideas either — they just have monopolies.

That isn’t good enough for Congresswoman Blackburn, who sought to strip funding from the FCC to punish the agency for crossing AT&T, Comcast and other telecom companies:

Marsha is an avowed member of the AT&T Fan Club.

Marsha is an avowed member of the AT&T Fan Club.

In July, I passed an amendment in Congress that would prohibit taxpayer funds from being used by the FCC to pre-empt state municipal broadband laws. My amendment doesn’t prevent Chattanooga or any other city in Tennessee from being able to engage in municipal broadband. It just keeps those decisions at the state level. Tennessee’s state law that allowed Chattanooga and other cities to engage in municipal broadband will continue to exist without any interference from the FCC. Tennessee should be able to adjust its law as it sees fit, instead of Washington dictating to us.

Notice that Blackburn’s ideological fortitude has loopholes that protect a very important success story — EPB Fiber in Chattanooga, one of the first to offer gigabit broadband service. If municipal broadband is such a threat to common sense, why the free pass for EPB? In fact, it is networks like EPB that expose the nonsense on offer from Blackburn and her industry friends that claim public broadband networks are failures and money pits.

In fact, Blackburn’s idea of states’ rights never seems to extend to local communities across Tennessee that would have seen local ordinances gutted by Blackburn’s telecommunications policies and proposed bills. In 2005, Blackburn introduced the ironically named Video Choice Act of 2005 which, among other things:

  • Would have granted a nationwide video franchise system that would end all local oversight over rights-of-way for the benefit of incumbent telephone companies, but not for cable or other new competitors like Google Fiber;
  • Strips away all local oversight of cable and telephone company operations that allowed local jurisdictions to ensure providers follow local laws and rules;
  • Prohibited any mechanism on the local level to collect franchise payments;
  • Eliminated any rules forbidding “redlining” — when a provider only chooses select parts of a community to serve.

More recently, Blackburn has been on board favoring legislation restricting local communities from having a full say on the placement of cell towers. Current Tennessee law already imposes restrictions on local communities trying to refuse requests from AT&T, Verizon and others to place new cell towers wherever they like. She is also in favor of highest-bidder wins spectrum auctions that could allow AT&T and Verizon to use their enormous financial resources to snap up new spectrum and find ways to hoard it to keep it away from competitors.

Not everyone in Tennessee appreciated Blackburn’s remarks.

Nashville resident Paul Felton got equal time in the newspaper to refute Blackburn’s claims:

Rep. Marsha Blackburn is on her high horse (Tennessee Voices, Oct. 3) about the idea of the Federal Communications Commission opposing laws against municipal broadband networks, wrapping herself in the mantle of states’ rights. We know that behind all “states’ rights” indignation is “corporate rights” protection.

The last I heard, there was only one Internet, and anyone can log into Amazon or healthcare.gov just as easily from any state. Or any budget.

No, this is about the one Internet being controlled by one corporate giant (or two) in each area, who want to control price and broadband speed, and now want to link the two. They don’t want competition from any pesky municipal providers hellbent on providing the same speed for all users, at a lower price. Check the lobbying efforts against egalitarian ideas to find out which side of an issue Marsha Blackburn always comes down on.

But comments like these don’t deter Rep. Blackburn.

“Congress cannot sit idly by and let a federal agency trample on our states’ rights,” she wrote, but we believe she meant to say ‘AT&T’s rights.’

“Besides, the FCC should be tackling other priorities where political consensus exists, like deploying spectrum into the marketplace, making the Universal Service Fund more effective, protecting consumers, improving emergency communications and other important policies,” Blackburn wrote.

Remarkably, that priority list just so happens to mirror AT&T’s own legislative agenda. Perhaps that is just a coincidence.

Alaska’s GCI Boosts Speeds But Leaves Its Caps and Overlimit Fees Intact

redAlaska-based GCI has rolled out a free upgrade for customers in Anchorage, Fairbanks, Juneau, Ketchikan, Mat-Su Valley, and Sitka that delivers broadband speeds up to 250/10Mbps.

GCI’s re:D broadband used to max out at 200Mbps, but thanks to channel bonding on the cable system, download speeds will be upgraded to 250Mbps in re:D service areas by the end of this year.

But getting 250Mbps broadband is not cheap in Alaska. The service is priced at $174.99 a month when part of a service bundle. Broadband-only customers also pay a $11.99 monthly access fee. Both come with 24-month contracts at that price. Customers who don’t want to be tied down can choose month-to-month service for $5 more per month.

At those prices, one might hope GCI would drop its usage cap, but customers can forget it. A 500GB monthly usage cap applies, with overlimit fees up to $30/GB on some plans.

GCI also announced it would deliver 1Gbps next year over a fiber to the home network under construction in Anchorage, promising “no limits with what you can do with broadband” without mentioning whether it planned usage limits for its fiber service as well.

GCI is asking customers to vote support for their neighborhoods getting fiber upgrades. The more red this map of Anchorage shows, the more customers who have shown support for fiber broadband.

GCI is asking customers to vote support for their neighborhoods getting fiber upgrades. The more red sections of this map of Anchorage shows, the more customers who have shown support for fiber broadband.

For most GCI customers, however, broadband will continue to arrive over the company’s HFC coaxial cable network. To better manage speeds, the company’s DOCSIS 3 platform is bonding eight cable channels, but in re:D areas the company bonds up to 24 cable channels, with plans to increase to 32 channels.

acs logoThe speed increases come after its competitor Alaska Communications announced speed increases of its own. ACS sells unlimited access broadband service at speeds up to 50Mbps. ACS has beefed up its copper infrastructure to support faster Internet speeds, starting with 15Mbps introduced across the state in May. Now customers in Anchorage can subscribe to faster tiers including 30 and 50Mbps.

“Alaskans asked for faster Home Internet, and we’ve responded with these increased speeds, delivered with great customer service and without overage charges,” said ACS president and CEO Anand Vadapalli. “In addition to faster download speeds, customers choosing our product get the highest upload speeds that are so important for sharing videos and gaming.”

ACS has found its unlimited broadband offering attractive to customers who don’t want to worry about GCI’s overlimit fees. ACS also claims its customers get broadband over a dedicated line, not shared infrastructure like GCI, resulting in no speed slowdowns at peak usage times.

Singapore’s Cutthroat Gigabit Broadband Price War Shows Real Competition Saves Consumers $

bnr_reg_1gbpsThree competing telephone companies in Singapore have launched an all-out price war on gigabit fiber to the home Internet access that shows what real competition can do for broadband pricing.

Last week, M1 took a butcher knife to its monthly rate for 1Gbps service that used to cost $101.75 a month. Today, anyone can order service price-locked for 24 months at a promotional price of $38.65 a month — less than what most cable companies in the United States charge for 10Mbps service. It is the cheapest gigabit plan in Singapore and when the promotion ends, the price may or may not increase to $78 a month. Competitive pressure in Singapore may make M1’s post-promotional price untenable.

Competition is the reason M1 may not be able to raise prices. MyRepublic slashed the price for gigabit service to just under $40 a month in January.

SingaporeSingapore’s largest phone company, SingTel, has its own unlimited gigabit offering for $55.13 a month, a price the company is now re-evaluating.

“We’re happy to see Singapore move towards the 1Gbps standard,” a MyRepublic spokesman said, noting it has no immediate plans to further lower its rates. But it has sweetened its offer by throwing in a free smartphone for every customer signing up for 1Gbps service.

With broadband prices so low, providers are now switching to beefing up extras to entice customers. SingTel promises customers they will never encounter traffic shaping that might cut their broadband speeds when networks get congested. It also offers a 25 percent discount on a virtual private network (VPN) add-on, a common feature used in Singapore to get past geographical restrictions on video streaming. VPN users in Singapore rely on the service to reach Hulu, Netflix and other North American video services that only allow domestic audiences to watch.

A fourth competitor – StarHub – is late to the gigabit battle and is presently working on a revamped offer to be introduced by October. StarHub’s original gigabit broadband offer was expensive at more than $400 a month. That plan has been discontinued.

Wall Street and other trading centers are not happy that falling prices have sliced into telecom profits. Average revenue per user (ARPU) collected by Singapore’s ISPs have dropped 15-20 percent since MyRepublic launched the price war. Investors are being warned that profits will be affected by the robust competition. In Singapore, broadband prices are falling, but so are the costs to provide the service. In North America, it is a much different picture, where a lack of competition has allowed providers to increase prices, constrict usage, and avoid dramatic speed upgrades, even though wholesale broadband costs in North America are among the cheapest in the world.

Irish Communications Minister Promises Fiber Broadband to Every Citizen and Business in the Country

http://www.phillipdampier.com/video/Digital Ireland Forum Opening address by Minister Alex White -- Part 1 of 2 9-12-14.mp4

Ireland’s new Communications Minister announced major improvements in rural broadband at the Digital Ireland Forum. This is part one of his remarks. (7:16)

White

White

Ireland’s new Minister for Communications Alex White has made a personal commitment to deliver high-speed fiber broadband “to every citizen and business in the country, irrespective of their location.”

Ireland has a set a national priority to deliver world-class broadband to every corner of the republic, stepping in to subsidize broadband service where private providers have refused to upgrade their networks to offer the service.

Five months ago, the cabinet announced $473 million – $664 million would be available to pay for a rural fiber broadband network for about 1,100 small villages that can barely get DSL service, if any broadband at all.

Minister White rejected the philosophy of incremental upgrades like those taking place in North America, particularly by companies attempting to improve traditional DSL service. He believes Ireland must move to a fiber-based telecommunications future.

Although there are questions about the precise type of fiber network to be installed in rural Ireland, some answers are emerging this week.

Outgoing Communications Minister Pat Rabbitte, recently reshuffled out of the Irish cabinet, claimed the National Broadband Plan was committed to fiber to the home/business service, not fiber to the cabinet technology similar to AT&T U-verse and the type of “super fast” broadband being installed in Great Britain.

eircom_logo-744153But some critics contend $664 million is insufficient to wire every building in Ireland for fiber service and suspect the government may try to backtrack and choose fiber to the cabinet or wireless service for the most isolated communities that could prove extremely expensive to reach with fiber.

In 2012, the government initially guaranteed minimum broadband speeds of 30Mbps to every rural home in the country, but failed to meet that commitment and has since dropped promising any specific broadband speeds.

Stating a commitment to deliver “high-speed” service is inexact because it means different things in different parts of Ireland. A “high-speed connection” in rural Ireland might be defined as 10Mbps, but 50Mbps would be more typical in Dublin, Cork, and Limerick.

Earlier this month, national telecom provider Eircom passed the 1 millionth premises with 100Mbps fiber broadband as it completed wiring the County Kerry community of Cahersiveen. The Irish fiber network now reaches half the country, and provides both fiber and Vectored DSL, which can support 100Mbps broadband speeds. Eircom noted its fiber network rollout was well ahead of network upgrades in the United States, the United Kingdom and Germany.

Once complete, fiber broadband will be available to every town in Ireland with a population of more than 900 people.

http://www.phillipdampier.com/video/Digital Ireland Forum Opening address by Minister Alex White -- Part 2 of 2 9-12-14.mp4

Part two of remarks from Ireland’s Communications Minister about fiber broadband across Ireland. (6:26)

Kentucky Wakes Up: AT&T Dereg Bills Will Not Bring Better Broadband, Will Make Rural Service Worse

luckykyQuestion: How will ripping out landline infrastructure in Kentucky help improve broadband service for rural areas?

Answer: It won’t.

This is not for a lack of trying though. AT&T has returned to the Kentucky state legislature year after year with a company-written bill loaded with more ornaments than a Christmas tree. In the guise of “modernizing” telecom regulation, AT&T wants to abolish most of it, replaced by a laissez-faire marketplace for telecommunications services not seen in the United States since the 1910s. AT&T claims robust competition will do a better job of keeping providers in check than a century of oversight by state officials. But customers in rural Kentucky have a better chance of sighting Bigfoot than finding a competitive alternative to AT&T’s telephone and DSL service. AT&T retains a monopoly in broadband across much of the state where cable operators like Time Warner don’t tread.

This year, Senate Bill 99, dubbed “The AT&T Bill” received overwhelming support from the Kentucky Senate as well as in the House Economic Development Committee. AT&T made sure the state’s most prominent politicians were well-compensated with generous campaign contributions, which helped move the bill along.

Since 2011, AT&T’s political-action committee has given about $55,000 to state election campaigns in Kentucky, including $5,000 to the Senate Republican majority’s chief fundraising committee and $5,000 more to the House Democratic majority’s chief fundraising committee. The company spent $108,846 last year on its 22 Frankfort lobbyists.

That generosity no doubt helped Republican Floor Leader Jeff Hoover find his way to AT&T’s talking point that only by “modernizing” Kentucky’s telecom laws would the state receive much-needed broadband improvements.

Hoover

Hoover

Hoover is upset that the state’s House Democratic leadership stopped AT&T’s bill dead in its tracks, despite bipartisan begging primarily from AT&T’s check-cashers that the bill see a vote. Speaker Greg Stumbo, whose rural Eastern Kentucky district would have seen AT&T’s landline and DSL service largely wiped out by AT&T’s original proposal, would hear none of it.

He has been to AT&T’s Deregulation Rodeo before.

“When I served as attorney general, I dealt with deregulation firsthand to protect consumers as much as possible,” he wrote in a recent editorial. “In most cases, deregulation led to worse service and less opportunity to correct the problems customers invariably faced. It is now our job as House leaders to continue defending Kentucky’s consumers.”

Stumbo, like many across Kentucky, have come to realize that AT&T’s custom-written legislation gives the company a guarantee it can disconnect rural landline service en masse, but does not guarantee better broadband as a result.

“In fact, there is nothing in the legislation guaranteeing better landline, cell or Internet service,” Stumbo noted.

Hoover declared that by not doing AT&T’s bidding, Kentucky was at risk of further falling behind.

“This decision by Stumbo and House Democrat leadership, like many others, has unfortunately had a real effect on the lives of Kentuckians as we will go, at minimum, another year before these private businesses can focus on increasing broadband speed throughout the commonwealth,” he wrote. “It is another year in which we risk falling further behind our neighboring states and others in the competitive world of economic development.”

Stumbo

Stumbo

Stumbo responded the Republicans seemed to have a narrow vision of what represents progress. Hoover and his caucus voted against the House budget that included $100 million for a broadband improvement initiative spearheaded by Gov. Steve Beshear, Rep. Hal Rogers, and private interests.

By relying entirely on a deregulated AT&T, rural Kentucky residents may lose both landline and DSL service and be forced to wireless alternatives that come at a high price.

“There are citizens, many of whom are elderly or on fixed income, who depend on their landline or cannot afford more expensive options; these are the people I am fighting for,” said Stumbo. “I do not want to get a call from a family member who lost a loved one because that person could not reach a first responder in time.”

State residents watching the debate have increasingly noticed discrepancies between what AT&T wants and what it is promising Kentucky.

“No one has ever been able to satisfactorily explain to me how allowing phone companies to abandon landline service will help expand broadband Internet, especially since DSL service requires phone lines,” said H.B. Elkins, Public Information Officer at KYTC District 10.

Matt Simpson recognizes that Senate Bill 99 and other similar measures will not change the economic realities of AT&T’s for-profit business.

“Without regulation, the for-profit companies like AT&T are going to invest in the most profitable areas,” he wrote. “If they thought they could make a huge profit providing broadband in rural areas, they would already be doing it. Deregulation is not going to change that profit calculation. They will still view rural broadband as unprofitable, and they still won’t do it. The bill was a total giveaway to the industry, with no offsetting benefit to the consumers.”

Michael Yancy summed up his views more colorfully.

“The ‘AT&T bill should be classified as a sheep bill. It was all about pulling the wool over the eyes of the public,” Yancy said. “Anyone who thinks the people of Kentucky will benefit from more of the same, needs to make inquiries into moving the Brooklyn Bridge to the Ohio River.”

http://www.phillipdampier.com/video/KET Phone Deregulation Kentucky Tonight 1 2-19-13.mp4

Kentucky Educational Television aired a debate between AT&T and the Kentucky Resources Council on the issue of telephone deregulation in 2013. The same issues were back this year in AT&T’s latest failed attempt to win statewide deregulation and permission to switch landline customers in rural Kentucky to less reliable wireless service. In this clip AT&T argues it should be able to shift investment away from landline service towards wireless because wireless is the more popular technology, but not everyone gets good coverage in Kentucky. (Feb. 19 2013) (3:00)

http://www.phillipdampier.com/video/KET Phone Deregulation Kentucky Tonight 2 2-19-13.mp4

In this second clip, AT&T claims customers who want to keep landline service can, but Kentucky Resources Council president Tom Fitzgerald reads the bill and finds AT&T’s claims just don’t hold up under scrutiny. The carrier of last resort obligation which guarantees quality landline phone service to all who want it is gone if AT&T’s bill passes. Customers can be forced to use wireless service instead. (Feb. 19 2013) (4:33)

N.Y. Regulators Predict Some Time Warner Customers Will Pay More Than Double to Comcast

Staff at the New York regulator overseeing the state’s telecommunications companies have determined that some Time Warner Cable customers will see their largest rate increase in New York history — more than double their current rate — if Comcast is successful in its bid to acquire Time Warner Cable.

At issue is Time Warner Cable’s heavily promoted ‘buy only what you need’ Every Day Low Price Internet service, which offers 2Mbps service for $14.99 a month.

Comcast has no plans to continue the discount offering, which means Internet customers will pay more than twice as much for Comcast’s cheapest Internet package available to all customers — Economy Plus (3Mbps), priced at $39.99 a month and only available at that price if you also subscribe to Comcast telephone or television service.

Time Warner Cable’s cheapest television package is priced at $8-20 a month. Comcast’s least-expensive TV package costs $17-20 a month.

“Time Warner’s lowest-priced offerings… represent choices for New York consumers,” Public Service Commission staff wrote in an Aug. 8 filing in the case, noted Albany’s Times-Union. “Any loss of these services would likely result in consumers paying more.”

Comcast denies it will raise prices for New Yorkers or any other Time Warner Cable customer, but noted it needs to study the “significant competition that it faces” before making any decisions on prices. When Comcast discovers Verizon FiOS isn’t providing much of a competitive threat in areas unreached after Verizon stalled its expansion efforts and AT&T U-verse and other telco broadband offerings cannot keep up with cable broadband speeds, they might assume they don’t face that much competition after all.

Martinique Getting Island-Wide Fiber to the Home Broadband Service

Phillip Dampier September 15, 2014 Broadband Speed, Public Policy & Gov't, Rural Broadband No Comments

martiniqueThe Caribbean island of Martinique will receive island-wide fiber to the home broadband service by 2019 and upgrades for many of the island’s ADSL lines while the overseas department (départements et territoires d’outre-mer) of France awaits fiber service.

Prime Minister Manuel Valls announced the agreement in principle to finance the four-year fiber project under the island’s Public Network Initiative administered by local authorities.

The project’s budget is $155.39 million, with about $34 million paid upfront by Martinique and the rest financed by the island’s four arrondissements and France itself.

By 2019, 80,000 fiber to the home connections will be installed on Martinique, starting with priority institutions including schools, hospitals, government offices and office parks. Until the fiber upgrades are complete Martinique will upgrade existing ADSL and satellite connections to ensure 90 percent of the island has at least 8Mbps broadband service until the fiber network arrives to replace DSL.

Within two years, Martinique’s broadband speeds will exceed the average speeds rural American and Canadian broadband users can receive.

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