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AT&T Blackmails America: No (Phony) Fiber Upgrades Until You Kill Net Neutrality

Phillip Dampier November 12, 2014 AT&T, Consumer News, Net Neutrality, Public Policy & Gov't 1 Comment

ransomAT&T is putting its gigabit fiber network upgrades on hold as long as President Barack Obama continues to insist on robust Net Neutrality for American broadband.

AT&T Randall Stephenson told Wall Street investors attending this morning’s Wells Fargo Technology, Media, and Telecom Conference that the current state of “uncertainty” created after President Obama delivered remarks Monday in favor of strong Net Neutrality protections makes any investment in fiber upgrades too risky to continue.

“We can’t go out and just invest that kind of money deploying fiber to 100 cities […] not knowing under what rules that investment will be governed,” Stephenson said, excluding the two million customers already upgraded under AT&T’s Project VIP, AT&T’s effort to boost its wireless infrastructure in rural areas and upgrade U-verse to handle incrementally faster broadband speeds. “We have to just put a stop on those kinds of investments that we are doing today.”

But Stephenson’s accusation that the president’s strong support for Net Neutrality is responsible for putting AT&T’s plans on hold ignores the financial realities that have been a part of AT&T’s proposed upgrades since the company first announced them in April 2014.

Construction of Verizon’s fiber to the home FiOS network required significantly enhanced spending for several years, much to the consternation of Wall Street, that frequently criticized the project as too costly. In contrast, there have been few complaints about AT&T’s much larger 100 city fiber project because financial reports show no significant spending increases or large-scale capex investments by AT&T. In fact, on Friday — three days before the president made his remarks on Net Neutrality — AT&T announced investment cuts of at least $3 billion for 2015.

Stop the Cap! has reported AT&T’s fiber upgrades lack appropriate financial support and will require billions in increased investments to offer more than a handful of demonstration projects limited to new housing developments and multi-dwelling units where construction costs are considerably lower.

Stephenson admitted that most of the company’s Project VIP upgrade effort is now nearly complete, allowing the company to return to “normal” spending levels seen when major upgrades are not underway.

“You say okay, here has been the [increased spending in the budget], those projects are finished, we spiked it,” Stephenson said. “Now we’re bringing it down to a more normal rate.”

Stephenson reminded investors that they will see a dramatic savings in investment spending starting late this year.

“Just the cost [to AT&T over the last few years of Project VIP and] to be putting away this much investment, [it has been] a big operating expense block […] that we have been dragging through the last three years as we did all these buildouts,” said Stephenson. “You will see in 2014 the fourth quarter that [level of] capex start to tail off.”

Netherlands Telecom Regulator: A Broadband Duopoly Doesn’t Equal Competition

Phillip Dampier November 3, 2014 Broadband Speed, Competition, Public Policy & Gov't No Comments

logo-acm-enIn the Netherlands, having access to two broadband competitors isn’t enough to guarantee broadband competition, and Dutch telecom regulators are not about to deregulate Internet service in the country until consumers have more choices for broadband access.

The Dutch telecom regulator on Friday announced it will keep wholesale access regulations in place for an extra three years to guarantee KPN – the former state-owned telephone company – plays fair with competitors.

“If ACM were not to step in, there would be too little choice: Dutch telecom company KPN and cable company UPC/Ziggo would then dominate the market,” says the Authority for Consumers and Markets (ACM) in a written statement. “In ACM’s opinion, having just two providers in these markets cannot be considered healthy competition.”

“Furthermore, KPN and UPC/Ziggo are challenged by their competitors to continue to invest in their networks and to innovate,” said Henk Don, a board member of ACM. “As a result, faster and better connections become available in the Netherlands.”

kpn

KPN

The Dutch telephone and mobile provider will be required to continue allowing competitors such as Vodafone and Tele2 access to KPN’s landline and fiber to the home networks to offer competitive broadband service. ACM reports that Dutch consumers are saving at least $312 million a year in lower Internet access pricing just by forcing KPN to allow other companies to compete using its network.

KPN isn’t hampered by the forced openness, because ACM has also given the phone company relaxed operating rules to allow it to invest in DSL upgrades including vectoring and the forthcoming G.Fast standard, which could dramatically boost broadband speeds.

Most Dutch consumers, like those in North America, realistically have a choice between one telephone and one cable company — usually Ziggo (currently merging with UPC), for broadband service. But unlike in the United States, Dutch regulators have remained wholly unconvinced an effective duopoly is subject to enough competitive pressure to protect consumers and nascent competition from upstarts. Therefore, ACM has applied regulatory checks and balances to protect the marketplace and consumers from abusive pricing and service practices.

U.S. telecom companies argue that regulations hamper investment and delay network improvements. In the Netherlands, where broadband speed rankings exceed the United States, prices are also lower.

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)

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.

Bell’s Efforts to Take Bell Aliant Private Will Divert $160 Million in Expansion Funds to Shareholders

Bell-Aliant-FibreOP

Bell Aliant’s FibreOp fiber to the home service may suffer as Bell/BCE redirects upgrade investments into shareholder dividend payouts.

Bell Aliant customers in Atlantic Canada won’t benefit from Bell Canada’s (BCE) efforts to take subsidiary Bell Aliant, Inc. private unless they happen to be shareholders.

In July, Bell Canada Enterprises announced its intention to privatize Bell Aliant, which serves customers in Nova Scotia, Prince Edward Island, New Brunswick, Newfoundland and Labrador, expecting at least $100 million a year in savings from reduced operating costs and capital investments.

Bell Aliant has operated largely independent of Bell Canada from its headquarters in Halifax, N.S. Bell Aliant customers have received FibreOp fiber to the home upgrades in several Atlantic provinces in recent years, providing more advanced services than Bell’s fiber to the neighborhood platform Fibe in Ontario and Quebec. Bell Aliant customers have also avoided usage caps and usage-based billing, getting access to unlimited use broadband at speeds up to 400/350Mbps.

Politicians in Nova Scotia immediately raised the alarm about the possibility of job cuts. Both Tory and NDP opposition leaders complain the Liberal premier has not done enough to protect jobs.

Bell Canada Enterprises

Bell Canada Enterprises

NDP MLA Dave Wilson said all three parties agreed to work on economic issues for the province. Wilson said he fears if the government isn’t vocal about its support for the jobs, Bell might look to move them elsewhere.

The news is better for those holding stock in the company. Existing public minority shareholders are being offered cash or shares of BCE stock (or a combination of both) in return for selling their Bell Aliant stock.

Bell wants to take Bell Aliant private to get access to its consistent $1 billion in cash revenue earned annually, mostly to satisfy BCE shareholders with a more reliable and consistent dividend payout.

Although Bell promises it will continue to invest in Atlantic Canada, its own financial disclosures show customers in the region will see spending on upgrades and other service improvements cut as a result of Bell’s actions.

Bell has committed to spending an average of $420 million a year across Atlantic Canada, but as an independent, Bell Aliant was investing $578 million annually, primarily on fiber upgrades. Over the next few years $160 million of the investment budget will be diverted to maintain a healthy divided payout for BCE stockholders. As of May 2014, BCE was paying a dividend of $0.6175 per quarter with common shares outstanding of 777.3 million, for a quarterly dividend payout of about $480 million per quarter, or $1.92 billion per year. As Bell Aliant shareholders cash out their holdings or convert them to BCE shares, the growing number of BCE shareholders will require Bell to spend more to satisfy dividend payouts. In fact, BCE may transfer enough money out of Bell Aliant’s operations to raise its dividend for all BCE shareholders to attract new investors.

Reduced spending will mean reduced upgrades for Bell Aliant customers. Bell is not promising significant cost savings from merger-related synergy, so capital spending will likely suffer the most as a result. So will customers.

Frontier Communications Promises Gigabit Broadband Will Be Available… to Almost Nobody

Frontier's "High Speed" Fantasies

Frontier’s “High Speed” Fiber Fantasies

Frontier Communications has jumped on the gigabit broadband promises bandwagon with an announcement to investors the company will make available 1,000Mbps broadband speeds available later this year to a small handful of customers.

“I want to note that nearly 10% of our households are served through a fiber to the home architecture,” said Frontier’s chief operating officer Dan McCarthy. “Over the next several quarters we will introduce expanded speed offerings in select markets including 50-100Mbps services. Some residential areas will also be able to purchase up to 1Gbps broadband service. We are excited to bring these new products to market and look forward to making these choices available to our customers.”

Most of Frontier’s fiber customers are part of the FiOS fiber to the home infrastructure Frontier adopted from Verizon in Fort Wayne, Ind., and in parts of Oregon and Washington. The rest of Frontier customers accessing service over fiber are in a few new housing developments and some multi-dwelling units. The majority of customers continue to be served by copper-based facilities.

Despite the speed challenges imposed by distance-sensitive DSL over copper networks, Frontier customers crave faster speeds and more than one-third of Frontier’s sales in the last quarter have come from speed upgrades. As of this month, 54% of Frontier households can receive 20Mbps or greater speed, 75% can get 12Mbps and 83% can get 6Mbps. Here at Stop the Cap! headquarters, little has changed since 2009, with maximum available Frontier DSL speeds in this Rochester, N.Y. suburban neighborhood still maxing out at a less-impressive 3.1Mbps.

Frontier’s plans for the next three months include a growing number of partnerships with third-party equipment manufacturers and software companies, as well as integrating former AT&T service areas in Connecticut into the Frontier family:

Sale of AT&T Connecticut Assets to Frontier Communications Wins Approval from State Attorney General

frontier frankConnecticut’s Attorney General has announced a deal with Frontier Communications to approve its acquisition of AT&T’s wired assets in the state. The office asked for and got a three-year rate freeze on basic residential telephone rates and a commitment to keep selling standalone broadband at or below Frontier’s current rates. Low-income military veterans would receive basic broadband service for $19.99 per month, a substantial discount off the regular price of $34.99. The first month of service is free.

Frontier will make $500,000 in donations annually to various Connecticut charities, give $512,500 to the University of Connecticut basketball teams, and commit $75,000 to sponsor the Connecticut Open tennis tournament in New Haven.

The phone company has also committed to invest $64 million on network upgrades between 2015-2017, primarily to expand DSL broadband and U-verse service. The company also must undertake to inspect the wireline network it is buying from AT&T and replace deteriorating infrastructure including lines and telephone poles as needed.

Frontier announced it was buying AT&T’s wired assets in December for $2 billion. AT&T will continue to own and operate its wireless network assets in the state. Connecticut was home to AT&T’s only significant landline presence in the northeast. The Southern New England Telephone Company of Connecticut was originally bought by SBC Communications for $4.4 billion in 1998. After SBC purchased AT&T, the telephone company changed its name to AT&T Connecticut. Its primary competitor is Cablevision Industries, which also serves eastern New York and parts of New Jersey. AT&T has aggressively deployed its U-verse platform in Connecticut. Frontier will continue to run and expand U-verse in the state.

Frontier Services and Partnerships Expand

  • Customers may have already received marketing for Frontier’s Emergency Phone, a $4.99/mo landline that can only reach 911. Frontier CEO Maggie Wilderotter told investors that global climate change has made weather patterns more unpredictable, making the reliability and resiliency of traditional landlines a “true life line” in the event of an emergency knocking out Voice over IP lines or cell phone service;
  • Frontier Texting, powered by Zipwhip, allows customers send and receive text messages using their existing landline numbers. The service appears most popular with business customers, with more 800 signed up so far;
  • Frontier third-party technical and security support offers a large range of computer security, home automation, and support services for both hardware and software. Frontier added the Nest thermostat during this quarter, as well as tech support for Intuit QuickBooks and Dropcam remote video monitoring.

Wilderotter Flip-Flops on Gigabit Broadband: You Don’t Need a Gig

Less than three weeks ago, Wilderotter told the Pacific Northwest readers of The Oregonian they didn’t need gigabit broadband speeds:

“Today it’s about the hype, because Google has hyped the gig,” said Wilderotter, in Portland this week for a meeting of her company’s board. She said Google is pitching something that’s beyond the capacity of many devices, with very few services that could take advantage of such speeds, and confusing customers in the process.

“We have to take the mystery and the technology out of the experience for the user because it’s a bit disrespectful to speak a language our customers don’t understand,” said Wilderotter, in Portland this week for a meeting of her company’s board.

Frontier’s pitch: Better prices for more modest speeds. For most people, Wilderotter said, 10 to 12 megabits per second will be perfectly adequate for at least the next couple years. She said Frontier is upgrading its networks in rural communities where it doesn’t offer FiOS to meet that benchmark.

Now that Frontier proposes to offer those speeds, company officials are excited they will be available. Customers shouldn’t be. Most won’t have access for some time to come, if ever.

Syracuse Wants More Choices Than Comcast and Verizon: Considers Building Publicly-Owned FTTH Alternative

Downtown Syracuse (Image: Post-Standard)

Downtown Syracuse (Image: Post-Standard)

The city of Syracuse is facing an unpleasant broadband reality: the current cable company is about to be bought out by Comcast (which has usage caps in store for broadband customers) and the phone company has thrown in the towel on further expanding FiOS — fiber to the home broadband.

Mayor Stephanie Miner isn’t willing to let the city get trapped by a lack of broadband options from Comcast and Verizon, so she’s developing a plan to build a publicly owned alternative.

“I’m putting together a plan that we can do it ourselves, as a community,” Miner told the Post-Standard

If approved, Syracuse would join Chattanooga, Lafayette, La.,  Wilson and Salisbury, N.C., and several other cities providing local citizens with broadband speeds up to 1,000/1,000Mbps.

“Would we have to do that in phases? What would that look like? How would we pay for it? What would the model be? Those are all things that we are currently looking at, ” Miner noted.

Many of those questions have already been worked out by the best clearinghouse Stop the Cap! knows for excellent community broadband project development: the team at the Institute for Local Self Reliance.

The Community Broadband Networks Initiative of the Institute for Local Self-Reliance, works with communities across the United States to create the policies needed to make sure telecommunications networks serve the community rather than a community serving the network. The Institute for Local Self-Reliance is a non-profit organization that started in Washington D.C. in 1974.

ILSR’s Mission:

The Institute’s mission is to provide innovative strategies, working models and timely information to support environmentally sound and equitable community development. To this end, ILSR works with citizens, activists, policymakers and entrepreneurs to design systems, policies and enterprises that meet local or regional needs; to maximize human, material, natural and financial resources; and to ensure that the benefits of these systems and resources accrue to all local citizens.

No community should attempt to build a community broadband network without first consulting with ILSR. They are particularly effective at helping combat the misinformation campaigns that often arise when an incumbent duopoly discovers they are about to get serious competition for the first time.

If your community wants something better than the local cable and phone company, have your local official(s) E-mail or call Christopher Mitchell at ILSR: 612-276-3456 x209

With entrenched providers unwilling to meet the needs of communities for affordable fast Internet, more American communities are providing the service themselves, much as they take care of local roads, bridges, and other public infrastructure. Comcast’s toll information superhighway may work wonders for shareholders, but it leaves most customers cold. Syracuse, like most upstate New York cities, has also watched Verizon flee from investments in FiOS expansion beyond a handful of wealthy suburbs. Verizon has diverted much of its investment away from wired networks in favor of wireless, a much more profitable business.

More Proof of Comcast’s Monopoly Tendencies: Spending Big to Kill Community Broadband Competition

When the community of Batavia, Ill., a distant suburb of Chicago, decided they wanted something better than the poor broadband offered by Comcast and what is today AT&T, it decided to hold a public referendum on whether the town should construct and run its own fiber to the home network for the benefit of area residents and businesses. A local community group, Fiber for Our Future, put up $4,325 to promote the initiative back in 2004, if only because the town obviously couldn’t spend tax dollars to advertise or promote the idea itself.

Within weeks of the announced proposal, both Comcast and SBC Communications (which later acquired AT&T) launched an all-out war on the idea of fiber to the home service, mass mailing flyers attacking the proposal to area residents and paying for push polling operations that asked area residents questions like, “should tax money be allowed to provide pornographic movies for residents?” The predictable opposition measured in response to questions like that later appeared in mysterious opinion pieces published in area newspapers submitted by the incumbent companies and their allies.

no comm broadband

Comcast spent $89,740 trying to defeat the measure in a community of just 26,000 people. SBC spent $192,324 — almost $3.50 per resident by Comcast and just shy of $7.50 per resident by SBC. Much the same happened in the neighboring communities of St. Charles and Geneva. 

According to Motherboard, the scare tactics worked, cutting support for the fiber network from over 72 percent to its eventual defeat in two separate referendums, leaving most of Batavia with 3Mbps DSL from SBC or an average of 6Mbps from Comcast.

Much of the blizzard of mailers and brochures Comcast and SBC mailed out were part of a coordinated disinformation campaign. Both companies also knew their claims would go largely unchallenged because Fiber for Our Future and other fiber proponents lacked the funding to respond with fact check pieces of their own mailed to residents to expose the distortions.

When it was all over, it was back to business as usual with Comcast and SBC. The latter defended its reputation after complaints soared about its inadequate broadband speeds.

Kirk Brannock, then midwest networking president for SBC, told city council members in the area that “fiber is an unproven technology.”

“What are you going to do with 20Mbps? It’s like having an Indy race car and you don’t have the racetrack to drive it on. We are going to be offering 3Mbps. Most users won’t use that,” he said.

risky

“All the subscribers got these extraordinary fliers. Ghosts, goblins, witches. I mean, this is about a broadband utility. Very scary stuff. This is real. This is comical, but this is very real,” Catharine Rice of the Coalition for Local Internet Choice said of the fliers at an event discussing municipal fiber earlier this year. “They have this amazing picture, and then they lie about what happened. They’re piling in facts that aren’t true.”

In communities that won approval for construction of publicly-owned fiber networks, the battle wasn’t over. Tennessee’s large state cable lobbying group unsuccessfully sued EPB to keep it out of the fiber business. In North Carolina, Time Warner Cable effectively wrote legislation introduced and passed by the Republican-dominated General Assembly that forbade community broadband expansion and made constructing new networks nearly impossible. In Ohio, another cable industry-sponsored piece of legislation destroyed the business plan of Lebanon’s fiber network, forcing the community to eventually sell the network at a loss to Cincinnati Bell.

The larger Comcast grows, the more financial resources it can bring to bare against any would-be competitors. Even in 2004, the company was large enough to force would-be community competitors to steer clear and stay out of its territory.

women

 

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