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Verizon Commits to Spend $1 Billion on New Fiber Buildout for Its 5G Network

Verizon Communications announced a deal Tuesday with a leading optical fiber manufacturer to supply up to 12.4 million miles of fiber cable annually for a large buildout of Verizon’s fiber network to power its forthcoming 5G wireless service.

Verizon’s $1.05 billion agreement with Corning, Inc., of Corning N.Y., will guarantee Verizon will have an ample supply of optical fiber available from 2018-2020 at a time when the company noticed a fiber cable shortage was causing problems for its current FiOS/5G fiber buildout now underway in Boston.

“This new architecture is designed to improve Verizon’s 4G LTE coverage, speed the deployment of 5G, and deliver high-speed broadband to homes and businesses of all sizes,” Verizon said in a statement. But Verizon did not make it very clear the expansion will primarily benefit Verizon Wireless, not Verizon Communications’ FiOS fiber to the home service.

Verizon CEO Lowell McAdam, appearing exclusively on CNBC this morning, rejected the notion that the fiber buildout would represent a restart of Verizon’s long-suspended expansion of its FiOS fiber to the home service.

“When we deployed FiOS we would run a fiber cable into a neighborhood with six or eight strands in it,” McAdam said. “Now we’re going to drop off six or eight strands to every street light in every neighborhood so that allows you to deliver a gigabit of thruput into the home and allows you to do things like intelligent transportation, electric grid management, and water system management. You hear a lot about autonomous cars and things like that today that don’t work without 5G.”

Verizon’s Boston project represents the current CEO’s vision: a wireless-based network supported by an extensive fiber network. But instead of connecting fiber to homes, McAdam’s network connects fiber to tens of thousands of palm-sized “small cells” and other wireless infrastructure that will deliver services to individual neighborhoods instead of individual homes.

Critics still question whether Verizon’s 5G network will be able to sustain its speed and capacity claims outside of testing labs, especially as shared wireless network infrastructure faces future usage demands. Fiber to the home service does not require customers to share bandwidth the same way a wireless connection would and can manage much higher capacity.

Verizon CEO Lowell McAdam and Corning chairman and CEO Wendel Weeks appeared jointly on CNBC to discuss Verizon’s $1.05 billion agreement with Corning to guarantee up to 12.4 million miles of optical fiber a year from 2018-2020. (11:24)

AT&T Blames Labor Costs for High Cost of Fiber Expansion

Phillip Dampier April 5, 2017 AT&T, Consumer News No Comments

AT&T wants to pass 12.9 million homes with its fiber to the home upgrade, but is upset about the price of those doing the work.

In an effort to cut costs, Fierce Telecom reports AT&T is discontinuing the practice of having two technicians prepare a home or business for fiber — one working outdoors on the fiber drop to the home and the other installing inside equipment like wiring, set-top boxes and gateways. Now one AT&T technician or subcontractor is expected to do it all.

“Originally we had a technician who placed the fiber drop and ONT [optical network terminal] on the side of the home and then they turned it over a technician inside the house that get the customer going with their services,” said Kent McCammon, lead member of technical staff at AT&T Labs. “The desire was to have what was formerly called the inside technicians perform the fiber drop, but in order to do that we had to train technicians who were not using to dealing with fiber.”

An AT&T Fiber cable placed on a pole in Dunwoody, Ga. (Image: Heneghan’s Dunwoody Blog)

To simplify training and cut costs, AT&T has been using field installed mechanical connections and pre-connectorized fiber drops, which means the installer no longer has to manually splice fiber cable connections, saving time. But as a result the technicians can no longer test the actual performance of the fiber connection to the home.

“When the technicians did a mechanical connection, you don’t have the visibility like you do with a fusion splicer where you can actually see it’s a good connection,” McCammon said. “[Once] the ONT’s green light turned on […] they left whether it was well done or not.”

That has been a risk AT&T is willing to take to speed expansion of fiber service to more of its customers, but it has also increased the number of service calls when customers are left with substandard service.

“In our recent analysis we did a few weeks ago, we’re seeing lines with variable optical power,” McCammon said, a sure sign there is a technical fault. “It’s 5% of the areas where we have installed fiber so 95% of the cases have a good connection.”

In most cases, McCammon said problems are usually the result of a bad connector and when it is replaced, power levels return to normal. It’s up to customers to notice a problem and call it in for now, but AT&T is studying whether optical time-domain reflectometer (OTDR) capability could be deployed to detect problems like air gaps or high reflection points inside the fiber.

AT&T is also reviewing how future fiber technologies can co-exist with AT&T’s current GPON fiber network. The technologies that can currently overlap AT&T’s GPON network are XGS-PON and NG-PON2. AT&T is currently reviewing XGS-PON to see if it would be suitable to deploy symmetrical 10Gbps service in the future.

“We’re getting started XGS-PON,” McCammon said. “We have it in the lab and we’re starting the IT work on that system right now, and unless something changes, that’s where we’re headed after GPON for consumer and potentially for business.”

Verizon’s Broken Promise to Wire All of NYC With FiOS Results in Lawsuit

Two years after Verizon promised its FiOS fiber to the home service would be available to every resident of New York City, the city sued Verizon Communications on Monday, alleging Verizon failed to meet its commitment.

The 19-page lawsuit, filed in New York’s Supreme Court, contrasts the city’s interpretation of Verizon’s commitments laid out in a 2008 franchise agreement against Verizon’s claim it has met its obligations. Central to the case is the city’s claim tens of thousands of New Yorkers cannot get FiOS service from Verizon, even though Verizon’s fiber network may be running down the street.

“Verizon must face the consequences for breaking the trust of 8.5 million New Yorkers,” Mayor Bill de Blasio said in a statement. He added that, “It’s 2017 and we’re done waiting. No corporation — no matter how large or powerful — can break a promise to New Yorkers and get away with it.”

A 2015 audit conducted by the city and testimony given in public hearings confirmed Verizon had failed to wire every building for service, despite what the city believed was Verizon’s promise to do so.

Verizon defended its actions, claiming it had met its obligations to New York City by providing FiOS fiber-to-the-home infrastructure throughout the five boroughs. The problem, according to Verizon, is intransigent building owners that have obstructed Verizon’s entry to get service to tenants. Verizon’s defense does come with some evidence. The company has filed numerous complaints with New York’s Public Service Commission to gain entry to properties in the city that have either ignored Verizon’s efforts to wire their buildings or actively opposed it.

Some landlords claimed no tenants in their building wanted Verizon FiOS and the telephone company wasn’t welcome. Others accused Verizon installers of damaging buildings or performing shoddy work and sought assurances Verizon will meet the building owner’s installation standards. Some live-in building managers have even demanded kickbacks or free service in return for entry. New York State law gives Verizon a right of entry and the company has followed legal channels to eventually gain admittance.

Difficulties with landlords alone cannot account for many other instances where willing customers were told service was not available. In some cases, even city officials seeking FiOS were themselves told repeatedly it was unavailable.

Verizon’s defense is likely to come down to a single industry phrase — “homes passed.”

The former Bloomberg Administration signed an agreement with Verizon that committed Verizon to wire its fiber network citywide. Verizon interpreted the contract to mean installing fiber infrastructure that passes every major property in New York, but not wiring every property for the service. The current de Blasio administration argues the contract means Verizon should be able to reach every customer that wants FiOS service within 7-14 days of receiving an order.

Verizon’s lawyer indirectly conceded Verizon has not made the service available to every household that might want the service.

In a letter sent last week to Anne M. Roest, the commissioner of the city’s Department of Information Technology and Telecommunications, Craig Silliman, Verizon’s general counsel, wrote:

“[…]We now pass all households in the city and can provide service to over 2.2 million households within seven to 14 days of receiving a service request.”

According to data from Baruch College, New York City had 3,129,147 households as of 2015, leaving at least 900,000 households unaccounted for.

Verizon’s fiber network may run down the street of each of those homes, but the lawsuit contends Verizon has been unwilling or unable to wire them for service.

“Although Verizon claims it ‘passed’ all residential premises, Verizon still does not accept orders from all city residents,” the city audit concluded. “In fact, it still informs residents that service is ‘unavailable’ at an address if their network has not been created on the block.”

The city and several consumer and civic groups have implored Verizon to ‘speed it up’ for the last two years but contend Verizon’s response has been inadequate, which led to the lawsuit.

McConville

Common Cause New York has been pushing for more FiOS service for years and reports consumers are frustrated with Verizon’s inability to deliver service. They now suspect Verizon’s unwillingness to expand FiOS comes from a lack of investment to complete its fiber network.

“People continue to be very frustrated because it appears that Verizon is motivated by what will be most profitable for them — what buildings to wire and what buildings to ignore,” Common Cause New York’s executive director Susan Lerner told the New York Times. “This really is about undertaking an ambitious obligation and then deciding halfway through that it’s not worth it. We are very happy to see the city holding the vendor’s feet to the fire. This is absolutely what should be done.”

Verizon appeared frustrated for another reason, shared by company spokesman Raymond McConville.

“On a day where the city is preparing for the biggest blizzard of the season, it’s sad that the mayor’s focus is on pursuing a frivolous lawsuit,” McConville wrote in an email to the Times. “The de Blasio administration is disingenuously attempting to rewrite the terms of an agreement made with its predecessor and is acting in its own political self-interests that are completely at odds with what’s best for New Yorkers. We plan to vigorously fight the city’s allegations.”

And if that doesn’t work, McConville threatened Verizon may not seek a franchise renewal when the current one ends in three years.

“50 Shades of Grey” Community Broadband Ban Bill Ties the Hands of Missouri Communities

Emery

It’s 2017 and a lot of Missouri residents are still tortured by the lack of access to basic broadband service, and if a community broadband ban bill becomes state law it will remain that way for years to come.

SB 186 is essentially a copy of last year’s community broadband ban that eventually died in the legislature. Just like last year, many of the sponsors and promoters of the latest attempt to impose a municipal broadband ban have close ties to the American Legislative Exchange Council (ALEC) and receive copious amounts of money from Missouri’s largest telecom companies. Some even win awards from the state’s biggest telecom lobbyists.

State Sen. Ed Emery (R-Lamar) loves the headlines he attracts from throwing ideological bombs into the public debate (he called homosexuality a mental illness, compared public education to slavery and a pathway to prison, and questioned whether former president Barack Obama was actually an American citizen). But he is not in touch with the rural residents in his state who have had their pleas for broadband service ignored by AT&T and other telecom companies for years.

Emery is a big fan of ALEC and serves as a Missouri state chairman. In 2015 he told an audience at an ALEC event he found the group’s efforts inspiring and helpful. ALEC acts as a giant clearinghouse for corporate-inspired legislation that ends up in the hands of friendly state legislators. ALEC’s model bills, including one banning municipal broadband, win passage in part because state legislatures do not get the kind of media attention and public scrutiny seen in Washington. SB 186, its predecessor, and other similar bills introduced in other states are frequently ghostwritten by telecom company lawyers and lobbyists and are designed to stop municipal broadband networks before they can get started.

Emery’s current bill is designed to apply a “scorched earth” response to communities trying to find ways to get rural broadband service up and running after a decade of being ignored by private telecom companies. It’s corporate protectionism and welfare at its finest, with a thicket of language that would force public providers into price and speed regulation. Emery’s bill would interfere with the types of loan agreements communities could contemplate to provide the service, and the language required for a mandatory referendum is heavily slanted to suggest such service is redundant and unnecessary. Emery’s bill also offers assurances his business friends could get gigabit speeds from community-owned providers, but not necessarily consumers.

Like the failed broadband hit bill introduced in Virginia, SB 186 is an ironic piece of legislation, heavy-handed with regulation and micromanagement and anchored with bureaucratic requirements designed to guarantee disappointment and costly failure. Emery’s career in public life has been spent railing against costly and unnecessary overregulation, yet his bill exemplifies both in action.

SB 186 also protects the status quo for broadband in Missouri, which is dreadful outside of major cities. It would assure incumbent telecom companies won’t face any service-improving competition and keep municipalities off their turf. For example, Columbia Water and Light has a “dark fiber” institutional fiber network at its disposal that is woefully underutilized. In addition to helping provide some connectivity for local government functions, the city-owned network also leases connections to hospitals and other public buildings, as well as some businesses. But the utility does not sell internet service itself.

The city believes much of the fiber network’s capacity is sitting un-utilized and could prove a valuable asset to the local connectivity economy. With the fiber already in place, expanding the network could be a cost-effective/common sense way to reach city residents that want better internet service than what incumbents are offering, and the city is more than willing to open the network up to those incumbents as well. SB 186 could eliminate that option in Missouri, just to protect the same private companies that have delivered underwhelming service for years.

In cities like Centralia, now exploring enhanced smart grid technology to improve the area’s electricity infrastructure, SB 186 would make the upgrade much more costly. Smart grid technology relies on fiber optic technology, often laid deep into neighborhoods and office parks. Only a tiny portion of that capacity is used to monitor utility infrastructure. The rest of the bandwidth on the fiber optic cable — already in place, could easily offer gigabit broadband service to every resident and business, especially if the city wires fiber to or near individual utility meters. That wouldn’t be allowed under SB 186 either, so communities like Centralia could not recoup some of the cost of the fiber optic technology by selling broadband service. That’s great news for companies like AT&T, CenturyLink, and Charter Communications. It’s also a relief for the phone companies who need not invest in their networks to offer something better than 20th century DSL.

Rural America: not a broadband-a-plenty

Emery offers two contradictory defenses for his bill:

  1. It is necessary to protect taxpayers from municipal broadband which Emery calls “unsuccessful, leaving ratepayers to cover debt costs.” But when asked by local media for any examples of a Missouri public broadband project that has failed, he could not.
  2. “We need more private-sector opportunities and not drive them out or hinder offerings coming into a community.”

In other words, Emery believes all public broadband networks are failures -and- they represent a major threat to private telecom companies that will be discouraged from investing in broadband expansion because a publicly owned competitor could be ready to “drive them out.”

Of course, neither is true. In rural Missouri there is no line of eager telecom companies seeking to expand broadband service into unprofitable rural communities and where only one broadband provider exists, there is no pressure to improve service quality or speed. In the first instance, there is no investment by private companies to discourage and in the second, the presence of a new provider encourages upgrades and investment. It’s a concept called “competition.” Sen. Emery would have a difficult time providing the name(s) of telecom companies that exited a community because of the presence of a municipal broadband alternative.

Rural farms are among the least likely places to get adequate internet service.

Sen. Emery’s family has a feed and grain business background, and those businesses (as well as Missouri’s farmers) are among the hardest hit economically by the lack of suitable broadband. But Emery is now far away from the business his father and grandfather ran. These days, he harvests big dollar contributions from some of the country’s largest corporations and much of his last campaign was financed by just two families — one with a vendetta against unions and the other — Rex Sinquefield — bucking to be Missouri’s own version of the Koch Brothers, who has his own private agenda he’d like enacted into law. Sinquefield has close ties to the Grow Missouri PAC, that also has close ties to the Club for Growth, ALEC, and the Koch Brothers’ backed Americans for Prosperity. Birds of a feather flock together.

Missouri’s biggest telecom companies are also generous contributors to Sen. Emery, which isn’t a surprise considering his bill and voting record directly benefits their businesses in the state. That may explain why the Missouri Cable Telecommunications Association — the state’s top cable lobbying group — gave Emery its Legislator of the Year award. Not to be outdone, the phone companies’ Missouri Telecommunications Industry Association gave Emery its own Leadership Award. Anyone who can introduce a bill that eliminates the best prospect of competition in suburban and rural Missouri for years is probably worthy of both.

In return for favors like that, some familiar names appear at the top of Emery’s list of campaign contributors:

  • AT&T ($6,000)
  • Comcast ($4,000)
  • Verizon Communications ($4,000)
  • CenturyLink ($3,500)
  • Charter ($2,000)
  • Time Warner Cable ($1,500)
  • Charter Communications ($1,325)
  • Sprint ($1,000)

Emery clearly listens to their interests more than average Missouri consumers still searching for broadband service.

The St. Louis Post-Dispatch reported last summer that there are significant gaps in broadband coverage even in St. Louis County, where one million residents live. “Fringe suburban spots” too costly to meet Return On Investment requirements guarantee no service, indefinitely. In St. Clair County, 5,000 homes are without broadband for the same reason. In large parts of the state, what constitutes broadband no longer meets that definition — 25Mbps, as established by the FCC. Every telephone ratepayer pays a “universal service fee” on their phone bill, in part to extend broadband into rural areas. But that extension has been spotty because not every phone company accepts the money and the conditions that come with it to broaden their reach. That leaves many rural Missourians with <1Mbps DSL service. That’s the case in Wildwood, where streaming media is out of the question because internet speeds are too low.

The Broadband Berlin Wall: Wildwood, Mo. — Broadband service is easily available to the east of Highway 109. But to the west, service is spotty to non-existent.

Wildwood — in western St. Louis County, is living in “Third World conditions,” even though “we’re not in rural Timbuktu,” according to resident Marilyn Gilbert. It’s also comparable to Cold War-era Berlin, except in reverse. Eastern Wildwood offers residents broadband options from both Charter and AT&T. But the Broadband Berlin Wall dividing the community — Highway 109, separates the broadband haves’ from the have-nots’. The larger part of Wildwood to the west, now growing with new housing and businesses, is a broadband swamp with few, if any choices for local residents.

Gilbert “enjoys” AT&T DSL and speeds that never come close to 1Mbps. It is her only option.

“I tried to download my Windows update and it timed out,” she said. “The amount of time you waste waiting for things to open up or download!”

Remember, this is in St. Louis County, the old home for the headquarters of Charter Communications, which dominates the city of St. Louis.

Despite earning billions every year from the broadband business, Charter has refused to extend its lines of service into the western half of Wildwood, despite efforts to attract the company that date back six years. Residents report broadband availability is among their top concerns taken to local officials, who have in turn sought help from Charter, AT&T, and the state legislature.

The city of Wildwood’s efforts were met with a demand by Charter to pay the cable company $3 million in taxpayer funds to extend service. The city said no.

“The comment we hear constantly is that kids need high-speed (internet) in order to access their school work,” said Wildwood councilman Larry McGowen. “These days, internet is just like another utility. It has become every bit as important in people’s lives as electricity.”

But it apparently is not important enough to allow Wildwood and other communities the option of constructing their own local broadband solutions for residents if Emery’s bill becomes law.

Ironically, the same companies that refuse to extend their service into rural Missouri are also vehemently opposed to letting local governments do it in their absence.

The stalemate has caused some residents to sell their homes and move, just to get internet access. David Norell left town because he couldn’t survive with satellite internet service, which costs $80 a month and offers spotty service with a low data allowance.

That makes Emery’s bill, and others like it, a travesty. Banning local communities from doing the job large for-profit companies won’t seems nothing short of corporate protectionism. After all, as critics of Emery’s bill charge, how can a local government unfairly compete with a company that doesn’t compete at all? Also of concern is the fact those residents that do get token DSL service from AT&T may be trapped using it forever if Emery’s bill keeps better and faster service from co-ops and other public broadband options off the table.

If it seems like Sen. Emery is putting the interests of big telecom companies – many dues-paying members of ALEC – above those of his constituents, perhaps he is. Consider the fact Emery is a state chairman at ALEC, an organization that included this loyalty pledge in its draft state chair agreement:

I will act with care and loyalty and put the interests of the organization (ALEC) first.

Emery has taken heat for his ongoing love affair with ALEC before, including an ethics complaint about a $3,000 meal at the Dallas Chop House where Emery ate. ALEC’s corporate members picked up the tab. That kind of unethical conflict of interest, along with the aforementioned loyalty pledge, infuriated the St. Louis Post-Dispatch:

Mr. Emery and his ilk can believe what they want, but they should play no part in allowing corporations to hide their agendas, and their lobbying expenses, by pretending to be something they are not. The proof is in ALEC’s actions, which as Washington Post columnist Dana Milbank outlined, hid itself behind closed doors in a meeting last week in the nation’s capital, pushing reporters away while claiming they had nothing to hide.

No, ALEC exists solely to hide. To hide money. To hide agendas. To hide its hijacking of democracy.

Lawmakers who care about the constitution and their commitment to voters should be fleeing faster than the corporations who realize ALEC is simply a bad investment.

Emery at a 2015 ALEC event.

It was not an isolated incident. Ed and his wife Rebecca Emery also enjoyed a $141.10 meal paid for by the Missouri Telecommunications Association. It’s safe to assume nobody had just a small salad. Other meals and drinks were courtesy of AT&T and CenturyLink. (Peabody Energy footed the bill for the Emerys’ taxi rides back and forth.)

When the wining and dining ended, the lobbyists were back with campaign contribution checks in hand.

These kinds of municipal broadband bans are toxic to economic development for rural communities that already face built-in economic and infrastructure disadvantages. The 21st century digital knowledge economy has the potential to make rural America equally competitive, assuming there is adequate infrastructure in place to participate.

Relying on private investment alone can work in urban areas where broadband profits are easy because the essential infrastructure to provide the service was constructed and paid for decades ago, originally to deliver telephone and television service. Rural areas suffer from deteriorated wireline infrastructure some phone companies want to abandon altogether and no cable broadband service at all.

Charter and AT&T first answer to shareholders. Local governments answer to their residents. Legislators are supposed to do the same. For Mr. Emery, loyalty to the interests of ALEC and the state’s telecommunications companies seems clear. It’s too bad his bill suggests a lot less loyalty to the voters in his district that need internet access or better broadband are will assuredly not get it if this bill ever becomes state law.

How State Politics Screwed Up a Solid Broadband Plan for Western Massachusetts

While rural western Massachusetts is stuck in a rural broadband swamp of Verizon’s making, politics in the state capital and governor’s office are risking Yankee ingenuity for another “free market” broadband solution that won’t solve the problem.

The dedicated locals that created WiredWest, the grassroots-envisioned regional broadband solution for more than two dozen towns suffering with inadequate or non-existent broadband service, have toiled for nearly a decade to accomplish what Verizon (or a cable operator) has never managed to do – provide consistently available internet access. WiredWest spent years carefully listening and learning the needs and challenges of each of their member towns. Communities affected by broadband deficiencies in this part of Massachusetts range from the most prosperous areas of the Berkshires to those financially struggling with a range of economic challenges.

On August 13th, 2011, The WiredWest Cooperative in western Massachusetts was officially formed by charter member towns. The project has gained some town, lost some others as the region works towards faster broadband.

WiredWest’s original plan would have brought fiber broadband to practically everyone in the region in just a few years, with more prosperous and populous towns helping subsidize network construction costs for their more budget-challenged rural neighbors. The goal was to avoid the patchwork of broadband have’s and have not’s that many private providers have created across rural America.

Establishing a regional network instead of trying to launch dozens of smaller community-owned providers would help streamline costs, avoid duplicating services, and deliver continuity of service. The concept made plenty of sense to two dozen town leaders and the participating communities, most voting to support the regional approach. But it apparently didn’t seem to make a lot of sense to a bureaucratic state agency called the Massachusetts Broadband Institute (MBI) that suddenly questioned the project’s operating plan and has avoided releasing tens of millions of dollars stashed in its bank account designated for rural broadband network construction.

MBI’s detractors call the agency a “concern troll” and some question whether MBI’s objections are the result of the usual friction between out-of-touch state bureaucrats and the rural communities they are supposed to help, or something more insidious. Others are content stating MBI’s position simply does not make any sense.

MBI spent more than a million dollars of taxpayer funds on lawyers and a Bangalore, India-based consultancy to produce and defend a dubious hit piece “analysis” about WiredWest rife with misconceptions and factual errors. The MBI-sponsored report concluded WiredWest would simply never work. What works better for MBI is handing out $4 million in taxpayer dollars to Comcast, with tens of millions more to be spent on funding private rural broadband projects in the future.

Crawford

Earlier this month, broadcast activist Susan Crawford shared her blistering conclusions about the usefulness of MBI:

For an agency that has produced virtually nothing so far, MBI is a high-priced operation. As far as I can tell, last year MBI spent $1 million of those state funds on consultants, lawyers, and administrative costs in order to hand $4 million to Comcast to provide its usual service to about a thousand homes in those nine Massachusetts towns that already had some cable service. What’s odd is that MBI told the public it chose Comcast because the company had vast experience and could get the work done without involving MBI—so it cost $1 million in oversight expenses to choose a company that doesn’t need oversight.

Despite protests from many residents across WiredWest’s would-be service area, Massachusetts Gov. Charlie Baker sided with his bureaucrats and stalled rural broadband deployment further with a temporary hold, which some claimed gave MBI and community broadband opponents additional time to further undermine WiredWest’s efforts.

Most recently, the same agency that wrung its hands worrying about the efficacy of WiredWest had no problem offering a quick $20 million in grants to private companies for rural broadband solutions. Few in broadband-challenged western Massachusetts are likely to be happy about the results of the latest machinations of MBI’s “free market solution with public taxpayer funds.” Last week, the public got its first look at the submitted applications, largely underwhelming in scope and specifics. None come close to offering the kind of ubiquitous and affordable broadband WiredWest proposed.

MBI also tailored their request for proposals to arbitrarily limit applicants, declaring only companies with $100 million in yearly revenue and at least five years experience building, operating, and maintaining residential broadband networks need apply. Had Google Fiber proposed to wire the entire region with fiber optics in an application, MBI would have turned Google down for lack of experience. (Google Fiber launched service in late 2012.) In fact, no startup or municipal project of any kind could realistically apply. Comcast and Charter could, and both did.

MBI claims each town will make their own final decision, but many communities have already done that by choosing WiredWest. Some towns are frustrated by the state’s interminable delays and politics and are discouraged with the potential spectacle of MBI continuing to throw up roadblocks for political reasons. Those communities are planning their own alternative projects if WiredWest can never get off the ground. The only current alternative is hoping a private company will step up and deliver service. Six applicants responded to MBI’s request for proposals from private providers. Only two showed any willingness to offer service across all of broadband-challenged western and central Massachusetts. Two others were cable operators that have neglected expanding service on their own because it was not profitable to do so. Another two applicants only wanted to serve a handful of communities. Here is an overview of the proposals:

Crocker Communications: Short on specifics, Crocker’s proposal claims an interest in wiring almost 40 unserved communities for $59.15 million, including $18.33 million in taxpayer funds, split into individual grants for each community. But even Crocker, among the most ambitious and detailed applicants, cannot meet MBI’s revenue qualifications, so it attempts to claim a vendor relationship with Fujitsu Network Communications of Japan, which supplies network infrastructure. How Fujitsu would be financially involved in the project to minimize the chances of Crocker running into financial problems while building out its proposed network is not adequately explained. Crocker only specifies $5 million of its own assets will be on the line.

Crocker’s website promotes the company’s desire to have a bigger presence in the state thanks to its cooperation with MBI. Crocker currently provides internet service to customers of a Leverett-based community broadband project. Coincidentally, Peter d’Errico of Leverett’s Broadband Committee was one of the contributors to MBI’s sponsored report slamming the WiredWest project as unrealistic and underfunded. We’re not sure what d’Errico thinks about Crocker Communications’ proposal, which asks for grants as little as $150,000 to help wire one community — New Ashford.

In an aspirational executive summary, Matthew Crocker, president of Crocker Communications, offers an admission there are “inherent challenges in fulfilling the Request For Proposals.” His conclusion: “If this were easy, it would be well underway.”

Crocker’s proposal won’t be easy for roughly 30% of those living in the nearly 40 communities his company proposes to serve. That’s because his company won’t be serving them. Crocker’s proposal only suggests he will deliver service to about 70% of the service area. MBI wanted proposals that would reach 96% of the population. But there will be plenty of time to contemplate these points. Crocker’s proposal warns residents may have to wait until 2021 before they can get service. That will give would-be customers four years to save enough money to pay Crocker’s proposed installation fees: “under $2,000 for 70% of homes passed” or “$3,000 for 96% of homes passed.” Ouch.

Whip City Fiber: Even more murky than Crocker Communications’ proposal, Westfield Gas & Electric’s “Whip City” fiber service submitted a plan offering to serve any of the 40 communities MBI identifies as underserved, but the details aren’t there, except to describe the service the company already provides to its own customers. The actual number of towns to be served and the schedule to launch service are all: TBD = To Be Determined.

Mid-Hudson Data: The most modest of proposals from this Catskill, N.Y. based company seeks $260,000 to offer 279 homes fiber service and wireless for another 20 in the community of Tyringham. Customers would pay an installation fee of $150. While potentially good news for customer living near George Cannon Road, it isn’t much help to the rest of the region.

Fiber Connect, LLC: Another modest proposal from this regionally based ISP offers to provide broadband service for Alford, Becket, New Marlborough, Otis, Tolland and Tyringham. The proposal notes the company is already running a pilot broadband program in Monterey and Egremont. One potential stumbling block is a poorly explained installation fee ranging from $0 if municipalities agree to a “fixed average cost” that could be included in grant funding or a municipally guaranteed lease-to-own payment to $299 if a customers apply for a mysterious promotion or rebate, or $999 which is defined as the basic “initial installation cost.”

Charter Communications: Formerly Time Warner Cable, Charter is hunting for taxpayer-funded grants to expand broadband service to Egremont, Hancock, Monterey, New Salem, Princeton and Shutesbury. All of those communities are near existing Charter/Time Warner Cable systems and the company spared no time in their application promoting their existing close ties with MBI to bring broadband to Hinsdale, Lanesborough, and West Stockbridge. Charter claims it can expand its cable service into the nearby communities in a “reasonable amount of time” but does not get more specific than that.

Comcast: Boils down its application to “we’re doing you a favor, but you pay” language reminding MBI the communities Comcast now proposes to serve: Goshen, Montgomery, Princeton and Shutesbury don’t come close to Comcast’s demand for return on its investment. But since taxpayers are helping to foot the bill….

The one noticeable difference Comcast has over all the rest of the applicants is a page-and-a-half of details about the various regulator-imposed fines and penalties it has had to pay recently for being an ongoing menace to its own customers. Is it arrogance for a company to assume such a vast number of damaging disclosures would not lead a responsible grantor to put the application in the circular file, or is it something else? After all, Comcast was already awarded up to $4 million in taxpayer funds in Massachusetts as a gushing press release reported in August, 2016:

WESTBOROUGH – The Massachusetts Broadband Institute at MassTech (MBI) and Comcast have reached an agreement that will extend broadband access in nine municipalities in Western and North Central Massachusetts, a project which is estimated to deliver broadband connectivity to 1,089 new residences and businesses, and will bring the overall coverage level in each town to 96% or above. The grant will provide up to $4 million in state funds to reimburse partial project costs for Comcast, which has existing networks in each of the towns, to construct broadband internet extensions to additional homes and businesses.

“This agreement further demonstrates our administration’s commitment to tackling broadband connectivity challenges for unserved residents and businesses,” said Governor Charlie Baker. “This public-private partnership will deliver sustainable, reliable, and cost-effective broadband connectivity to nine rural communities that previously faced significant coverage gaps, allowing nearly 1,100 households and businesses to participate more fully in the digital economy.”

“Our results-oriented approach to bridging broadband access gaps is connecting thousands of rural residents to the modern internet,” said Lieutenant Governor Karyn Polito. “We will continue to employ a dynamic, flexible approach to the Last Mile project, and seek solutions that meet the unique needs of communities and residents unserved by broadband access.”

The construction of the broadband extensions in Buckland, Conway, Chester, Hardwick, Huntington, Montague, Northfield, Pelham, and Shelburne is estimated to be completed within two years from the start of the project. The public-private partnership will extend high-speed internet service to unserved residents at speeds that meet or exceed the FCC’s definition of broadband service, through a hybrid fiber/coaxial-cable network.

Wired West Responds With a New Plan

Faced with insurmountable political obstacles, the folks behind WiredWest have bowed to the reality of the current political landscape and reintroduced themselves and their newest plan to get western Massachusetts wired for fiber optic broadband while trying to avoid any further encounters with MBI’s speed bumps and obstacles.

If WiredWest made one mistake, it was forgetting to establish the one connection that apparently matters more than anything else in Massachusetts: a political connection with state lawmakers. But the indefatigable group has not given up, and if the MBI is being honest about being an impartial partner in improving rural broadband in Massachusetts, there is still a better option available to communities than the six proposals recently submitted to MBI. That option is WiredWest.

In its latest proposal WiredWest would continue to play a significant role in the network after being built, with proven service plans that will deliver real broadband service to residents at rates comparable to what private companies charge. But the project will rely on member towns to construct their own fiber networks using private contractors and state and local funding. That puts more responsibility and network ownership in the hands of each individual town, an idea some towns originally rejected as too expensive and cumbersome. But MBI holds the money and has apparently rewritten the rules, so what MBI wants is what MBI will get.

The added cost to the project and the communities involved is significant: there will be some towns that cannot afford or manage the responsibility of constructing their own fiber networks and will likely drop out of the project. The new network plan will also increase costs WiredWest originally hoped to avoid. The group’s financial model also effectively subsidized some of the costs for the smallest and least able communities — a model that could be gone for good.

Each participating town network that does eventually get built will be connected in a ring topology to MassBroadband123, the state’s “middle mile” fiber network that is run privately by Axia Networks. At this point, it appears 14 communities are still on board with WiredWest, seven are “considering” the new WiredWest plan, and another 16 are “pursuing other options” but have not ruled out staying with WiredWest.

It is our recommendation that communities do everything possible to stay loyal to WiredWest, which has a proven track record of being responsive and accessible to communities across the region. Bucking the state’s inexcusable political interference by remaining united sends a strong message that local communities know best what they need, not a high-priced consultant, Springfield-based lawyers and bureaucrats, or the governor. None of those people have to live with the consequences of inferior or non-existent broadband and none have given the problem the kind of serious attention WiredWest has. The biggest challenge to WiredWest isn’t its financial sustainability, it is politics, and that needs to stop.

We’ve reviewed the submissions from MBI’s latest round of grant funding for private projects and they are all inadequate. While many of the companies involved are well-meaning and we believe could play a role in improving rural broadband, most of the applications seem to have been rushed and many lack specifics.

The region should not accept any plan offering only 70% broadband coverage, much less a proposal that will force another four-year wait for broadband (we credit Crocker Communications for at least including a specific timetable, something many of the other proposals did not.) Installation fees up to $3,000 are also unaffordable, with or without a financing plan.

Some analysts still worry if WiredWest can attract enough customers to be sustainable. If it isn’t, most of the private projects MBI has received applications for certainly are not either. Assuming customers can afford a few thousand dollars for installation — a major impediment to getting new customers, there is no guarantee which homes will get service and when. Competitively speaking, considering the only available alternative in most cases is spotty 1-6Mbps DSL from Verizon — a service the company has lost interest in improving or expanding — Verizon is likely to receive the same treatment it gets in other communities where better alternatives exist — a mass exodus of customers cutting Verizon’s cord for good. In fact, Verizon may ultimately sell its landline network in western Massachusetts to another company as it continues to disengage from its wireline businesses. It is highly unlikely any competitor of WiredWest will guarantee access to at least 25Mbps broadband.

WiredWest proposes to charge $59 for 25Mbps or $75 for 1,000Mbps broadband. Digital phone service is $19 a month. An installation fee of $99 will also apply. That is not out of line with what cable companies and other gigabit providers have charged, and they have won a comfortable market share. Private cable and phone companies also continue to raise rates on broadband, if only because they can, providing additional competitive insulation.

MBI’s grants should also not be the end of the story. New York last week rescued up to $170 million from the FCC’s Connect America Fund (CAF) to expand broadband deployment in unserved rural areas of New York State — money Verizon forfeited by expressing no interest in rural broadband expansion. That precedent opens the door for other states to recapture similar federal grants, including those that could target western Massachusetts where Verizon has also declined to accept CAF money. That could ease some of the money worries about WiredWest’s construction costs as well.

At the end of the day, area residents have turned up repeatedly at various events across the region holding signs supporting their choice in local providers: WiredWest. Nobody was holding up a sign hoping Comcast or Charter would be the company that finally brings broadband to their communities. The irony of using taxpayer dollars to fund Comcast in particular is not lost on their customers — many that loathe the company and wish they had another choice. Handing $20 million to that cable giant to expand in western Massachusetts guarantees their newest customers won’t have a choice either. Isn’t it time to give these communities what they want? They clearly want WiredWest.

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