Home » broadband speeds » Recent Articles:

Strong Evidence CenturyLink Giving Up on Most Residential Broadband Upgrades

CenturyLink is ready to capitulate in its competitive war with the cable industry, conceding its residential broadband business is a money loser that will no longer get broad-based upgrades and investment under the management of incoming CEO Jeff Storey, who will refocus CenturyLink on its larger business/enterprise customers.

The independent phone company has sent strong signals it is going to focus only on residential customers that are cheapest and easiest to reach, promising to fund broadband urban and suburban upgrades only where costs are low and the chances of a significant return is high. In rural areas, CenturyLink will depend heavily on capital made available by the FCC’s Connect America Fund when choosing areas worthy of upgrades.

“We’ll focus more on return on investment, which includes rural capital from the CAF II program,” said Sunit Patel, CFO of CenturyLink.

Patel, along with CenturyLink’s incoming CEO, originally worked for Level 3 Communications, a business and enterprise internet company acquired by CenturyLink in 2016. Now top Level 3 executives, at the behest of Wall Street and shareholders, are gradually taking over the top management positions of CenturyLink, pushing out current CEO Glen Post III with an early retirement this spring. With Post leaving, there is clear evidence CenturyLink is embarking on a transformation away from low return residential phone and broadband service and towards the kind of high profit business and enterprise connectivity Level 3 has provided for years.

Wall Street increasingly sees CenturyLink’s residential business as costing the company a lot of money for network upgrades that simply don’t deliver shareholder expectations of return on that investment, especially as the cable industry continues to aggressively deploy faster speed service to its customers.

In the fourth quarter of 2017, CenturyLink lost another 105,000 broadband subscribers, bringing internet subscriber numbers down to around 5.7 million nationwide. That represents a 4.8% reduction year over year, despite repeated promises of upgrades to stem those customer losses.

Last November, Post blamed those losses on customers served by CenturyLink’s legacy copper/DSL service areas where speeds and performance are lowest.

Soon to be CenturyLink Ex-CEO and President Glen F. Post

“We saw a much higher than expected loss of customers at the 20 Mbps and below speeds in a lot of the markets where we have that,” Post said during a late fall earnings call, according to a Seeking Alpha earnings transcript. “We had a much higher loss there. I think a couple of reasons, first of all, you see cable rolling out more with more aggressive offers, higher speeds and just the demand for bandwidth in those markets.”

Last fall, Post emphasized his broad-based residential and commercial broadband upgrade transformation plan to stop those losses. Post committed CenturyLink would provide 90% of homes with at least 40 Mbps, 70% of homes and businesses with 100 Mbps and over 20% with 1 Gbps or higher no later than 2020.

That was before activist shareholders and Wall Street joined forces to successfully push CenturyLink’s board to replace Post with business-oriented Level 3 CEO Jeff Storey. CenturyLink stock had been down by about one-third of its value over the last nine months, which only aggravated investors to push harder for dramatic management changes at the phone company. Activists argued CenturyLink shouldn’t be devoting much attention to its legacy businesses. In their eyes, only “strategic/success” businesses are worthy of investment, and those include commercial and enterprise broadband, metro ethernet, and cloud/backup services. The revenue eating “legacy” businesses, namely residential landline and DSL service, represent a drain on profits and threaten the company’s shareholder dividend. About two-thirds of CenturyLink customers are commercial enterprises.

(Blue) CenturyLink (Orange) Level 3

On March 6, 2018 the company announced Post’s retirement effective the day of its annual shareholder meeting in May. Post had originally planned to leave at the end of 2018, but some shareholders were unwilling to wait that long.

Strategic changes in CenturyLink’s future were previewed at the Morgan Stanley Technology, Media & Telecom conference earlier this month, where Patel outlined the company’s new vision.

“On the consumer side, the focus will be on enabling higher broadband speeds,” Patel said, but added a caution. “We won’t be spending capital on 5-20 Mbps connections, but rather on 100 Mbps and higher speeds. In urban areas we want to make sure we’re spending the capital where the returns make sense so focusing on multi-dwelling units make more sense in urban areas.”

Since the company is now going to target upgrades only in areas that “make more sense,” Post’s goal of better broadband for all by 2020 seem doomed

Another key piece of evidence is the retirement of CenturyLink executive Duane Ring, who announced he is leaving after 34 years despite a recent promotion. Ring, who led CenturyLink’s 12-state midwest region, was also behind much of CenturyLink’s residential broadband enhancement effort, including the 2005 launch of Prism TV — CenturyLink’s cable-TV alternative, as well as deploying gigabit speed services in several midwestern states. In 2016, he oversaw the deployment of 500 Mbps service for multi-dwelling units in 44 Platteville, Wisc. buildings that included nearly 800 apartments.

Broadband industry analyst Dave Burstein already sees the writing on the wall.

“Their fiber and G.fast plans, modest already, have been cut,” he noted. “They simply aren’t competitive with cable, which by 2020 will have a gigabit to 90% [of customers]. I look at the network and say if they don’t cut the dividend, trouble is near. Depreciation was $3 billion more than capex the last three years. Dividends were higher than income.”

As cable broadband speeds increase and customers defect from CenturyLink, few may choose to come back, making investments in broadband upgrades even more questionable.

“The rumor is they will virtually abandon much of the wireline network,” Burstein noted. “They will temporarily draw cash out to upgrade where they have better prospects,” referring to areas Patel identified as worthy targets for upgrades.

Mediacom Increasing Business Broadband Speeds

Phillip Dampier March 22, 2018 Broadband Speed, Consumer News, Mediacom No Comments

Mediacom Business reports the company will be increasing broadband speeds for its commercial customers around the country beginning April 1st without a change in rates.

The new speed tiers are:

  • 10 Mbps ($69.95) customers will be upgraded to 60 Mbps
  • 20 Mbps ($129.95customers will be upgraded to 100 Mbps
  • 50 Mbps ($199.95customers will be upgraded to 300 Mbps

Mediacom undertook a three-year network upgrade project starting in 2016, spending $1 billion to increase its fiber backhaul network and boost internet speeds and network capacity for its residential and commercial customers in 22 states where Mediacom operates. Mediacom offers gigabit speed across its footprint and claims it was the first major cable company in the country to offer universal access to gigabit speed. Commercial customers pay $349.95 a month for gigabit service.

Mediacom is also perennially rated the worst cable company in the country by its subscribers, according to Consumer Reports. Many of the complaints regard Mediacom’s internet service not meeting advertised speeds and suffering from overselling — placing too many customers on a shared connection which can drastically lower speeds during peak usage times. It isn’t known how much Mediacom’s upgrades have corrected these problems. Mediacom’s primary service areas are small and mid-sized towns and cities.

 

Comcast Boosting Broadband Speeds in the Northeast

Comcast is raising internet speeds of several of its XFINITY internet service plans in the northeastern United States as it continues to battle Verizon’s fiber to the home network FiOS.

“With new devices coming online for consumers every day, we’re committed to offering the fastest speeds and the best features and overall experience so our customers can take advantage of the technology available,” said Kevin Casey, president of Comcast’s Northeast Division. “We’ve increased speeds 17 times in the last 17 years, and continue to invest to deliver a fast, innovative and reliable experience in and out of the home.”

  • Blast download speeds increase from 200 Mbps to 250 Mbps
  • Performance Pro download speeds increase from 100 Mbps to 150 Mbps
  • Performance download speeds increase from 25 Mbps to 60 Mbps
  • Starter download speeds increase from 10 Mbps to 15 Mbps

Most customers can expect to see an average increase of 35-50 Mbps of enhanced download speed starting sometime this month. There is no news if upload speeds are affected. It may be necessary to briefly unplug your cable modem to reset to the new speeds.

The changes will affect customers from Maine to Virginia. Comcast has already increased broadband speeds in parts of the midwest and west coast. The cable company says 80% of its internet customers now subscribe to broadband speeds of 150 Mbps or more.

 

Fidelity Communications Caught Running Astroturf Website to Kill Broadband Competition

Sock Puppet “consumer group” opposing municipal broadband in Missouri is outed by their own website.

Fidelity Communications, a small Missouri-based independent cable operator providing service in Missouri, Oklahoma, Arkansas, Louisiana and Texas, has been outed as the creator and backer of a ‘grassroots’ group trying to prevent West Plains, Mo., from launching a public broadband network that would directly compete with Fidelity.

West Plains, a community of 12,000 in south-central Missouri, runs a public fiber network originally envisioned connecting city buildings, a local medical center, fire, police, and highway offices together. Local cable company Fidelity Communications had shown no interest in providing fiber connectivity in West Plains, so city officials explored the idea of building a city owned and operated fiber network itself. As word spread around town that fiber broadband was under consideration, locals began lobbying city officials to open the network up for private commercial and residential users as well.

By January 2016, supported by a dozen major employers willing to participate as network “anchors,” the city of West Plains got into the internet provider business.

West Plains has been challenged by a lack of digital infrastructure and has seen at least 500 jobs disappear over the past few years. Inadequate service from cable company Fidelity Communications, which suffered from frequent speed slowdowns and service interruptions, drove demands for an alternative.

Local officials have been extremely cautious about entering the broadband business, and have been reluctant to grow their network too quickly. The goal of the network these days is to provide robust and reliable high-speed internet access essential for the local digital economy and the jobs it creates. But city administrator Tim Stehn is also concerned about being a careful steward of the community’s finances.

“Of course, as a city administrator, I’m concerned, because if we would go completely to all businesses and residents, we’re looking at a high price tag that is estimated at $15 million,” Stehn told Christopher Mitchell in a 2017 interview for Community Broadband Bits. “What scares me the most is the customer service aspect of this. If we’re going to do this, I want to make sure the city is successful and that we can respond at serving the customer service. That’s the piece that really scares me the most.”

West Plains’ fiber network has grown carefully over the last few years, both in terms of its reach and its capabilities. At the outset, the network offered 25/25 Mbps dedicated connections primarily to business customers. But where West Plains’ fiber loop passes residential homes, the city has also been willing to provide service to local homeowners as well.

Last September, the city announced a three-month trial of the city’s 1 Gbps Gigabit Passive Optical Network (GPON). Up to 80 businesses and 14 homes in the Southern Hills district were invited to participate. West Plains’ GPON network offers participants a shared 1 Gbps connection. City officials were confident that even though the network is shared, there will be plenty of capacity available — much more than what DSL and cable broadband networks offer. The results of the pilot are designed to ascertain how much peak usage traffic the network will face and help local officials decide on what kinds of speed tiers to offer going forward.

The community’s progress since 2016 has not gone unnoticed. As Stop the Cap! has documented before, one of the best ways to force a stubborn incumbent phone or cable company to upgrade their network is to threaten to compete with it. Last September, Fidelity Communications suddenly announced it, too, was now offering gigabit internet service — at least for download speeds — within West Plains.

The residential service features 1 Gbps download speeds with 10 Mbps uploads, with a flat price of $79 per month, fees and Wi-Fi included, taxes may still apply. The higher speeds support multiple video streams, high-end online gaming, unlimited wireless devices and rapid transfer of huge data files, along with the capability to handle other bandwidth-hungry applications.

Over the past several months, Fidelity completed network upgrades, acquired 1 Gig-capable customer modems and freed up the bandwidth necessary to support the new 1 Gig speeds. These improvements will bring convenience and ease to those using the Internet in West Plains.

“As time goes on, technological demands keep increasing,” said Don Knight, Missouri general manager for Fidelity. “Fidelity intends to meet that demand by providing broadband speeds not normally available in rural areas.”

West Plains receiving gigabit service from two gigabit providers should be welcome news for local residents and businesses. But it apparently was not good news for Fidelity, which does not appreciate the competition.

Stop City Funded Internet has references to “Fidelity” — the area’s local cable company in certain file paths to images and other documents on its website.

StopCityFundedInternet.com was registered on Dec. 13, 2017 (and last updated Jan. 23, 2018, concealing the identity of the entity that registered the domain name behind an anonymous proxy service provided by Namecheap, a well-known domain name registrar.)

When the website went live, it claimed to be a “collection of fiscally conservative Missourians who believe that the role of government is to provide essential services that enhances the lives, safety and prosperity of local communities as opposed to leveraging taxpayer funds on high-risk endeavors that compete with services already provided by the private sector.”

This “independent” website coincidentally promotes the products and services of Fidelity Communications.

The website appeared to borrow heavily from a similar (failed) campaign to stop municipal broadband in Fort Collins, Col. The most common message of anti-municipal broadband campaigns is ‘taxpayer dollars will be wasted on failing broadband networks that take away from investments in schools, local infrastructure spending, and reducing crime.’ The Stop City Funded Internet campaign hit on all three of these messages, along with what it claims are examples of “failed” public broadband projects. The group’s website links to several “news articles” about municipal broadband that are actually opinion pieces typically written by industry-funded groups and individuals.

“West Plains is already a “Gig City,” with other private internet providers,” the website claims, without referring to Fidelity Communications directly. “In fact, residents already have access to a Gig connection for $80 per month. $80 per month is a price that is in line with many other cities around the country. The City of West Plains should focus its limited taxpayer funding on more pressing priorities, like fixing our roads and bridges, improving public safety and supporting our schools. And spending taxpayer dollars subsidizing a broadband utility would mean fewer resources for other services residents need and enjoy.”

The group invites those who oppose public broadband to register for e-mail updates, which will likely involve a $15 million bond and public referendum that would be needed to build out the city’s fiber to the home network to the entire community.

Isaac Protiva of West Plains found something unusual about the sudden appearance of the group and its website, which had no presence in the community before. For one, the group seemed to have an ample budget to spend on targeted Facebook ads for local residents. The ads promote the group’s website and Facebook page. That isn’t the case for Protiva’s own website: Internet Choice West Plains, which promotes the public broadband effort out of his own pocket.

Protiva also discovered certain elements on the group’s web page directly referenced “Fidelity:”

  • Header image: The main image from the homepage has a file name of “Fidelity_SCFI_Website_V2”
  • Privacy Policy: An image from the Privacy Policy page was hosted, or stored, on a website named “Fidelity.dmwebtest.com”

The website’s attempt to painstakingly avoid any connection to Fidelity Communications makes it a classic industry-sponsored astroturf operation. A private company secretly finances an “independent consumer group” that falls in line with the company’s public policy agenda. Many companies even brazenly reference such groups as evidence that their business views are in line with those of the public. In this case, the website developer accidentally outed the operation.

After Protiva began to publicize his efforts to document Fidelity’s funny business, the company initially responded by trying to hide the evidence. The website owners disabled the Internet Achive’s ability to snapshot the website’s history to scrub evidence of the accidental ties to Fidelity, Protiva claims. He also claims the group is heavily censoring its Facebook page.

Presented with strong evidence of the connection between Stop City Funded Internet and Fidelity Communications, the company finally came clean in a Facebook post:

Erie County Executive Blasts Bad Internet Access for Harming Western N.Y. Economy

Western New York

In a recent survey of 2,000 residents living in Erie County (Buffalo), N.Y., it was clear almost nobody trusts their internet service provider, and 71% were dissatisfied with their internet service.

Seventeen years after many western New York residents heard the word “broadband” for the first time at a 2000 CNN town hall at the University of Buffalo, where then U.S. Senate candidate Hillary Rodham Clinton called for increased federal funding for high-speed internet, many upstate residents are still waiting for faster access.

The Buffalo News featured two stories about the current state of the internet in western New York and found it lacking.

Erie County Executive Mark C. Poloncarz blames internet service providers for serving up mediocre broadband, and no service at all in some parts of the county he represents.

“It’s been put in the hands of the private sector, and the private sector has, for whatever reason, elected to not expand into particular areas or not increase speeds in particular areas, putting those areas behind the eight ball,” he said.

Poloncarz effectively fingers the three dominant internet providers serving upstate New York – phone companies Verizon and Frontier and cable company Charter/Spectrum. He argues that companies will not even consider locating operations in areas lacking the most modern high-speed broadband. The digital economy is essential to help the recovery of western New York cities affected by the loss of manufacturing jobs and the ongoing departure of residents to other states.

Poloncarz

An important part of Gov. Andrew Cuomo’s statewide broadband improvement initiative is prodding Charter Communications and its predecessor Time Warner Cable to do a better job offering faster internet speeds and more rural broadband expansion. The New York Public Service Commission, as part of its approval of Charter’s acquisition of Time Warner Cable, extracted more concessions from the cable giant than any other state. Among them is a commitment to expand the cable company’s footprint into adjacent unserved areas by 2020 to reach at least 145,000 homes and businesses now outside of Charter’s service area.

Last week, the cable company told the PSC it was ahead of schedule on its expansion commitment, now reaching 42,889 additional households and businesses, which is above its goal of 36,771. It has two years left to add at least another 102,111 buildings.

Charter also recently increased broadband speeds to 100 Mbps for 99% of its customers in New York and has committed to boosting those speeds to 300 Mbps by the end of next year.

But where Charter does not provide service, broadband problems come courtesy of western New York’s biggest phone companies – Verizon and Frontier. In Erie County, a broadband census found a lack of service in parts of South Buffalo, the far West Side and East Side of Buffalo, as well as in parts of every town in the county except in the prosperous communities of West Seneca and Orchard Park. Verizon FiOS can be found in a handful of well-to-do Buffalo suburban towns, but not in the city itself or in rural parts of the region.

Verizon spokesman Chris McCann said the company had no further plans to expand FiOS service in upstate New York, and stopped announcing additional expansions in 2010. In the rest of its service area, Verizon supplies DSL service as an afterthought, and has made no significant investments to improve or expand service. Frontier Communications, which is the dominant phone company in the greater Rochester region, also provides service in some other rural western New York communities, but its DSL service rarely meets the FCC’s minimum speed definition to qualify as  broadband.

Rep. Collins

Both phone companies have no plans for significant fiber optic upgrades that would boost internet speeds. There is little pressure on either company to begin costly upgrades. In rural communities, both companies lack cable competition and in more urban areas, both have written off their ongoing customer losses to their cable competitor. That leaves towns like North Collins in a real dilemma. Poloncarz told the newspaper residents frequently park in the town library parking lot at night to connect to the library’s Wi-Fi service, because they lack internet service at home.

A political divide has opened up between area Democrats and Republican officials on how to solve the rural broadband problem. Democrats like Poloncarz are exploring solving the rural internet problem with a county-owned fiber network that would be open to all private ISPs to assist them in expanding service. He is joined by Erie County legislator Patrick Burke, who thinks it is time to spend the estimated $16.3 million it will take to build an “open access network” across Erie County.

“There are literally geographic dead zones, and it’s unnecessary,” said Burke, a Buffalo Democrat. “There’s no excuse.”

Poloncarz is more cautious and told the newspaper he will only propose the idea if he is convinced it will solve the problem, but is willing to continue studying it.

Republicans from the western New York congressional delegation believe deregulation and other incentives may give private companies enough reasons to begin upgrades and expansion.

Rep. Chris Collins, a Clarence-area congressman with close ties to the Trump White House, defended FCC Chairman Ajit Pai’s recent decision to eliminate net neutrality. Pai was born in Buffalo.

Collins argues net neutrality only raised the cost of business for ISPs, and being rid of it would inspire cable and phone companies to boost investment in 105 exurban and rural towns in his district, which covers eight counties and extends from the Buffalo suburbs east to Canandaigua, 80 miles away. More than 65% of those areas are under-served because DSL is often the only choice, and at least 3.3% had no internet options at all.

Rep. Tom Reed (R-Corning) has just as many internet dead zones in his district, if not more. Reed represents the Southern Tier region of western New York in a district that runs along the Pennsylvania border from the westernmost part of New York east nearly to Binghamton. Much of recent broadband development in this part of New York comes as a result of Gov. Cuomo’s state-funded broadband expansion initiative, not private investment.

Reed has a record in Congress that is better at explaining the rural broadband dilemma than solving it.

“In a rural district, there are areas that are just physically difficult to serve,” Reed shrugged.

Collins’ hope that the banishment of net neutrality will inspire Frontier, Verizon, and Charter to use their own money to expand into the frontiers of western New York seems unlikely. Gov. Cuomo’s plan, which uses public funds to help subsidize mostly private companies to expand into areas where Return On Investment fails to meet their metrics has had more success.

But the rural broadband debate has been accompanied by a fierce pushback among upstate New Yorkers against the Republican-controlled FCC and elected officials like Collins who support the recent gutting of net neutrality. A backlash has developed in his district, and some have accused Collins of aiding and abetting a corporate takeover of the internet.

“The hysteria and narrative that this will kill the internet is blatantly false,” responded Collins. “Internet service providers have said they do not increase speeds for certain websites over others, and I have signed onto legislation that would make such a practice illegal.”

Search This Site:

Contributions:

Recent Comments:

  • LG: I've been trying and in several cases getting friends and family to dump those bundle services and cut that cord. The only real problem is that these...
  • jelabarre: Ironically enough, I'm finding I'm even watching Netflix less than even when we dropped CableTV some 18 months ago. These days it's all Crunchyroll (...
  • LG: I left Massachusetts 4 years ago for Florida. Hearing about corruption in my home state is nothing new. Recently, a letter showed up at a family memb...
  • L. Nova: Charter bribed this guy Larkin....
  • Keith: I concur...First, the programs available are junk and riddled with ads. Most subscribers might find 1-3 channels that they would watch but for most, G...
  • BobInIllinois: Did you ever consider that your ideas are great, but some companies just don't have the people, the skills, and $$ to make it all happen?...
  • L. Nova: I work for an I.T. hardware server and desktop company and even I could run Frontier better than these boneheads. What is Dan McCarthy doing? Fire AL...
  • LG: Poor, poor them. I guess they need to pay 45c instead of 36c....
  • Phillip Dampier: You are considered a current Time Warner Cable/Spectrum customer so new customer promotional rates like the one you quoted are not available to you......
  • BobInIllinois: Prediction---Many will be angry at this, because they will think that ESPN+ is to be a streaming of ESPN's normal stuff....
  • 16Candles: I signed up for twc at the tailend of the buyout from spectrum and I'm on the l-twc extreme 60/5. My price just went up to $49.99 and I was wondering...
  • Savanna Harness ( Vanna): I agree with all of this. Windstream and direct tv are known for getting over on ppl. I think mentally disabled ppl and low income are what they ta...

Your Account: