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Verizon’s Curious Allies, Employees Urge N.J. Regulators to Forget About FiOS Fiber Expansion

Verizon's FiOS expansion is still dead.

Verizon’s FiOS expansion is still dead.

New Jersey’s Board of Public Utilities has heard from hundreds of New Jersey residents about a settlement proposal that would let Verizon off the hook for failing to keep a commitment to provide high-speed broadband service statewide no later than 2010.

Curiously, hundreds of those comments were identical e-mails originating from AOL, Hotmail, MSN and Yahoo mail accounts urging the state to show lenience to Verizon — to forgive and forget the company’s broken promises. No mailing addresses were included. But the attached names and e-mail addresses were enough for Stop the Cap! to discover many of those submitting comments used non-working e-mail addresses or claimed their names were submitted without their knowledge or permission. Many others were actually employed by Verizon or were retirees.

“The proposed stipulation is fair and balanced and under your guidance, will build on the success that the Board and Verizon have achieved in making the Garden State one of the most wired broadband states in the country,” writes David Gudino, who doesn’t disclose in his correspondence with the BPU that his name is included in a list of attorneys working for Verizon Wireless.

“I would like to declare my support for the proposed stipulation between your Board Staff and Verizon as it relates to Opportunity New Jersey,” says another on behalf of an organization getting contributions from Verizon. “The stipulation will help ensure continued deployment of advanced communications services. Access to these services will not only benefit New Jersey’s businesses and nonprofits, but consumers of all ages as well.”

new-jerseyBy “advanced communications services,” the letter’s signers should know very well that means more 4G LTE wireless broadband with stingy usage caps and high prices, not more FiOS fiber to the home service.

What proved especially surprising was finding so many customers claiming to be happy with Verizon’s broadband performance in New Jersey who are still relying on AOL dial-up accounts. Stop the Cap! contacted a random 150 signers of the identical letters by using their attached e-mail addresses, which are part of the public record. We asked the writers to expand on their views about Verizon’s performance in New Jersey, whether they were satisfied with their current Internet provider, whether they have broadband service, and where they learned about this issue.

Remarkably, 35 of the e-mail addresses turned out to be invalid, so we contacted an extra 35 and 12 of those e-mail addresses were invalid as well. We found this unsettling because the only identifying information attached to the pro-Verizon correspondence was a name and e-mail address. We couldn’t be sure the authors were New Jersey residents much less real people.

We received 18 replies. Several were Verizon retirees asked to sign letters of support for Verizon. Another five had no idea what we were talking about and denied they submitted any views, pro or con, about Verizon. Three of those were Comcast customers that said goodbye to Verizon more than a decade earlier. Many others were associated with groups that happen to receive financial support from Verizon. Several  had no broadband access and were using dial-up.

Stop the Cap! did not receive a single reply from any person ready to articulate informed views about the terms of the settlement offer. They were simply asked to lend their names and e-mail addresses to Verizon’s campaign and had never seen the settlement proposal or heard much about it.

bpuJudith Stoma’s family has worked for Verizon/NJ Bell since 1958. She’s 71 years old today and she supports Verizon, at least in its efforts to “lead the way with N.J. at the forefront of technology.” Abdicating on FiOS expansion in favor of the same old DSL service Verizon proposes in its settlement seems to run contrary to that goal.

In several other instances, some of Verizon’s “supporters” actually used a space provided in the form letter to vent their frustration with Verizon!

Michael DeNude was irritated he never got FiOS: “We live in Riverdale and have not benefited by any upgrade.”

Paula Thomas was annoyed that Verizon outsources its workforce: “Verizon already outsources their telephone [operator] service. They should also guarantee that U.S. Citizens are given preference in the ‘job growth’ they ensure will happen.”

William Barlen thinks it’s a shame the current state of broadband in the U.S. is lacking: “It is sad that we have dropped behind over 50 countries on broadband speed and deployment. If you do not support this work exactly what are you doing?”

Paul Minenna is concerned that without FiOS broadband, speedier Internet access is not forthcoming: “Please make sure that you keep NJ moving forward with top-notch technology access. This is not the time to slow down Internet access.”

John Zilg’s letter is the same as nearly every other in support of Verizon, until he was given the opportunity to include his own remarks, which are completely contrary to everything else in the letter: “It is critical to continue supporting what has already been put into place. I urge you to not change direction.”

It is easily apparent that among the letters in support of Verizon, more than a few were not at all informed about what they were signing, and in many cases actually held completely different views when someone took the time to inquire in more detail. We are also very concerned about the number of invalid e-mail addresses attached to letters that carried no mailing address. On an issue of this importance, it is disturbing to not be certain those communications represent the legitimate views of actual New Jersey residents.

These factors must be taken into consideration as the Board of Public Utilities ponders the public input.

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Math Problem: The Telecom Industry’s Bias Against Fiber-to-the-Home Service

Phillip "Spending $6k per cable customer is obviously a much better deal than paying half that to build a fiber to the home network" Dampier

Phillip “Spending $6k per cable customer is obviously a much better deal than paying half that to build a fiber to the home network” Dampier

Math was never my strong subject, but even I can calculate the groupthink of American cable and telephone companies and their friends on Wall Street just doesn’t add up.

This week, we learned that cable companies like Bright House Networks, Suddenlink, and Charter Communications are already lining up for a chance to acquire three million cable customers Comcast intends to sell if it wins approval of its merger with Time Warner Cable. Wall Street has already predicted Comcast will fetch as much as $18 billion for those customers and pegged the value of each at approximately $6,000.

But for less than half that price any company could build a brand new fiber to the home system capable of delivering 1,000Mbps broadband and state-of-the-art phone and television service and start banking profits long before paying off the debt from buying an inferior coaxial cable system. Yet we are told time and time again that the economics of fiber to the home service simply don’t make any sense and deploying the technology is a waste of money.

Let’s review:

Google Fiber was called a boondoggle by many of its competitors. The folks at Bernstein Research, routinely friendly to the cable business model, seemed appalled at the economics of Google’s fiber project in Kansas City. Bernstein’s Carlos Kirjner and Ram Parameswaran said Google would throw $84 million into the first phase of its fiber network, connecting 149,000 homes at a cost between $500-674 per home. The Wall Street analyst firm warned investors of the costs Google would incur reaching 20 million customers nationwide — $11 billion.

“We remain skeptical that Google will find a scalable and economically feasible model to extend its build out to a large portion of the U.S., as costs would be substantial, regulatory and competitive barriers material, and in the end the effort would have limited impact on the global trajectory of the business,” Bernstein wrote to its investor clients.

dealSo Google spending $11 billion to reach 20 million new homes is business malpractice while spending $18 billion for three million Time Warner Cable customers is confirmation of the cable industry’s robust health and valuation?

Bernstein’s firm never thought highly of Verizon FiOS either.

“If I were an auto dealer and I wanted to give people a Maserati for the price of a Volkswagen, I’d have some seriously happy customers,” Craig Moffett from Bernstein said back in 2008. “My problem would be whether I could earn a decent return doing it.”

Back then, Moffett estimated the average cost to Verizon per FiOS home passed was $3,897, a figure based on wiring up every neighborhood, but not getting every homeowner to buy the service. Costs for fiber have dropped dramatically since 2008. Dave Burstein from DSL Prime reported by the summer of 2012 Verizon told shareholders costs fell below $700/home passed and headed to $600. The total cost of running fiber, installing it in a customer’s home and providing equipment meant Verizon had to spend about $1,500 per customer when all was said and done.

Moffett concluded Verizon was throwing money away spending that much on improving service. He wasn’t impressed by AT&T U-verse either, which only ran fiber into the neighborhood, not to each home. Moffett predicted AT&T was spending $2,200 per home on U-verse back in 2008, although those costs have dropped dramatically as well.

Moffett

Moffett

Moffett’s solution for both Verizon and AT&T? Do nothing to upgrade, because the price wasn’t worth the amount of revenue returns either company could expect in the short-term.

It was a much different story if Comcast wanted to spend $45 billion to acquire Time Warner Cable however, a deal Moffett called “transformational.”

“What we’re talking about is an industry that is becoming more capital intensive,” Todd Mitchell, an analyst at Brean Capital LLC in New York told Bloomberg News. “What happens to mature, capital-intensive companies — they consolidate. So, yes, I think the cable industry is ripe for consolidation.”

Other investors agreed.

“This is definitely a bet on a positive future for high-speed access, cable and other services in an economic recovery,” said Bill Smead, chief investment officer at Smead Capital Management, whose fund owns Comcast shares.

ftth councilBut Forbes’ Peter Cohan called Google’s much less investment into fiber broadband a colossal waste of money.

“Larry Page should nip this bad idea in the bud,” Cohan wrote.

Cohan warned investors should throw water on the enthusiasm for fiber before serious money got spent.

“FTTH authority, Neal Lachman, wrote in SeekingAlpha, that it would cost as much as $500 billion and could take a decade to connect all the houses and commercial buildings in the U.S. to fiber,” Cohan added.

Cohan was concerned Google’s initial investment would take much too long to be recovered, which apparently is not an issue for buyers willing to spend $18 billion for three million disaffected Time Warner Cable customers desperately seeking alternatives.

An investment for the future, not for short term profits.

An investment for the future, not short term profits.

Municipal broadband providers have often chosen to deploy fiber to the home service because the technology offers plenty of capacity, ongoing maintenance costs are low and the networks can be upgraded at little cost indefinitely. But such broadband efforts, especially when they are owned by local government, represent a threat for cable and phone companies relying on a business model that sells less for more.

The American Legislative Exchange Council (ALEC), funded by Comcast, Time Warner, AT&T, Verizon, and other large telecom companies is at the forefront of helping friendly state legislators ban community fiber networks. Their excuse is that the fiber networks cost too much and, inexplicably, can reduce competition.

“A growing number of municipalities are [...] building their own networks and offering broadband services to their citizens,” ALEC writes on its website. “ALEC disagrees with their answer due to the negative impacts it has on free markets and limited government.  In addition, such projects could erode consumer choice by making markets less attractive to competition because of the government’s expanded role as a service provider.”

The Fiber-to-the-Home Council obviously disagrees.

“Believe it or not, there are already more than a thousand telecom network operators and service providers across North America that have upgraded to fiber to the home,” says the Council. “The vast majority of these are local incumbent telephone companies that are looking to transform themselves from voice and DSL providers into 21st century broadband companies that can deliver ultra high-speed Internet and robust video services, as well as be able to deliver other high-bandwidth digital applications and services to homes and businesses in the years ahead.”

Stephenson

Stephenson

In fact, a good many of those efforts are undertaken by member-owned co-ops and municipally owned providers that answer to local residents, not to shareholders looking for quick returns.

The only time large companies like AT&T move towards fiber to the home service is when a competitor threatens to do it themselves. That is precisely what happened in Austin. The day Google announced it was launching fiber service in Austin, AT&T suddenly announced its intention to do the same.

“In Austin we’re deploying fiber very aggressively,” said AT&T CEO Randall Stephenson. “The cost dynamics of deploying fiber have dramatically changed. The interfaces at the homes, the wiring requirements, how you get a wiring drop to a pole, and the way you splice it has totally changed the cost dynamics of deploying fiber.”

Prior to that announcement, AT&T justified its decision not to deploy fiber all the way to the home by saying it was unnecessary and too costly. With Google headed to town, that talking point is no longer operative.

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Time Warner Cable, Comcast Crash, Burn in Consumer Reports’ 2014 Ratings

consumer reportsDespite claims of improved customer service and better broadband, Comcast and Time Warner Cable’s customer satisfaction scores are in near-free fall in the latest Consumer Reports National Research Center’s survey of consumers about their experiences with television and Internet services.

Although never popular with customers, both cable operators plummeted in the 2014 Consumer Reports ratings — Time Warner Cable is now only marginally above the perennial consumer disaster that is Mediacom. Comcast performs only slightly better.

In the view of Consumers Union, this provides ample evidence that two wrongs never make a right.

“Both Comcast and Time Warner Cable rank very poorly with consumers when it comes to value for the money and have earned low ratings for customer support,” said Delara Derakhshani.  “A merger combining these two huge companies would give Comcast even greater control over the cable and broadband Internet markets, leading to higher prices, fewer choices, and worse customer service for consumers.”

These ratings reflect Internet service only.

These ratings reflect Internet service only.

Comcast ranked 15th among 17 television service providers included in the ratings and earned particularly low marks from consumers for value for the money and customer support.  Time Warner ranked 16th overall for television service with particularly low ratings for value, reliability, and phone/online customer support.

Another ratings collapse for Comcast and Time Warner Cable

Another ratings collapse for Comcast and Time Warner Cable

Comcast and Time Warner Cable were mediocre on overall satisfaction with Internet service.  Both companies received especially poor marks for value and low ratings for phone/online customer support.

“In an industry with a terrible track record with consumers, these two companies are among the worst when it comes to providing good value for the money,” said Derakhshani.  “The FCC and Department of Justice should stand with consumers and oppose this merger.”

For as long as Stop the Cap! has published, Mediacom has always achieved bottom of the barrel ratings, with satellite fraudband provider HughesNet — the choice of the truly desperate — scoring dead last for Internet service. We’re accustomed to seeing the usual bottom-raters like Frontier (DSL), Windstream (DSL), and FairPoint (DSL) on the south end of the list. But now both Comcast and Time Warner Cable have moved into the same seedy neighborhood of expensive and lousy service. Comcast couldn’t even beat the ratings for Verizon’s DSL service, which is now barely marketed at all. Time Warner Cable scored lower than CenturyLink’s DSL.

Breathing an ever-so-slight sigh of relief this year is Charter Communications, which used to compete with Mediacom for customer raspberries. It ‘rocketed up’ to 18th place.

If you want top-notch broadband service, you need to remember only one word: fiber. It’s the magical optical cable phone and cable companies keep claiming they have but largely don’t (except for Verizon and Cincinnati Bell, among a select few). If you have fiber to the home broadband, you are very happy again this year. If you are served by an independent cable company that threw away the book on customer abuse, you are relieved. Topping the ratings again this year among all cable operators is WOW!, which has a legendary reputation for customer service. Wave/Astound is in second place. Verizon and Frontier FiOS customers stay pleased, and even those signed up with Bright House Networks and Suddenlink report improved service.

Ratings are based on responses from 81,848 Consumer Reports readers. Once again they plainly expose Americans are not happy with their telecom options. The average cost of home communications measured by the Mintel Group is now $154 a month — $1,848 a year. That’s more expensive than the average homeowner’s clothing, furniture or electricity budget. The same issues driving the bad ratings last year are still there in 2014: shoveling TV channels at customers they don’t want or need, imposing sneaky new fees along with broad-based rate increases every year, low value for money, and customer service departments staffed by the Don’t Care Bears.

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Cable Industry Has Charts to Prove Your Broadband is Screaming Fast

Tracking Cable’s Top Internet Speeds
NCTA-Charts_2_tracking broadband speeds

The National Cable & Telecommunications Association (NCTA) offers this infographic to suggest the deregulated cable broadband industry works well without any interference from meddling politicians.

Their claim: “Ongoing investments have enabled cable providers to continue boosting broadband speeds with top tiers increasing 50% every year.”

The reality: Cable’s broadband speed comes at a very high cost. The majority of Americans cannot buy 505Mbps residential broadband service from Comcast and even if you could, the price tag hovers around $300 a month, with a nearly-$1,000 early contract termination penalty, a $250 installation and $250 activation fee. Customers at other cable providers often find their maximum speed is just 50Mbps and/or their Internet usage is limited by a usage cap.

Google Fiber and some other gigabit fiber to the home providers are offering unlimited 1,000Mbps service for $70 a month with no installation or activation fee if a customer agrees to stick around.

Verdict: The cable industry could do better for much less.

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Bright House Networks to Build Limited 1Gbps Fiber to the Home Network in Tampa

ultrafiDespite the fact cable companies routinely claim customers don’t want or need gigabit broadband speeds, property developers seeking an edge in the real estate market do.

A planned community of 6,000 homes under construction by Metro Development Group (MDG) in Tampa has signed a deal to commit Bright House Networks to install a 1Gbps fiber-to-the-home network within the development. MDG said the first homes wired for the new service will be ready for residents this summer, but the entire project will take three years to finish.

“MDG hopes the fast Internet speeds will attract would-be buyers for the new homes,” said MDG president Greg Singleton.

brighthouse_logoMDG is branding the fiber service as ULTRAFi. It will be accompanied by a gigabit Wi-Fi network accessible throughout the community. In addition to providing fast broadband, the service will include home automation and security services.

The driver for the gigabit broadband project isn’t Bright House Networks, it is the property developer. Even though Bright House has committed to the project, it still denies consumers need super fast Internet speeds offered by providers like Google Fiber.

mdgBright House president Nomi Bergman acknowledged the project is a special deal with MDG and it will be years before average consumers need anything close to gigabit broadband speeds. Bergman said there is insufficient demand to justify upgrading Bright House Networks’ broadband speed offerings to other customers.

MDG obviously disagrees, because it hopes to extend fiber-to-the-home gigabit service to its other new communities. That could mean 20,000 more homes could eventually get gigabit broadband.

“In five or 10 years, I think communities that are not doing this” will be “obsolete,” Singleton said.

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Fiber to the Home is Now Cheap Enough for AT&T to Expand It to Dallas, Other Cities

Phillip Dampier March 10, 2014 AT&T, Broadband Speed, Competition, Consumer News No Comments

att gigapowerAT&T says it plans to adopt fiber to the home service in cities around the United States as part of an expansion of its U-verse GigaPower service.

CEO Randall Stephenson told investors at the Morgan Stanley Technology, Telecom, and Media Conference the “cost dynamics” of fiber optics have become “really encouraging” in its targeted fiber deployment in Austin, Tex.

“In fact I would tell you we are so encouraged that we want to begin taking this to other communities [where] we can get the terms and conditions like we have in Austin,” Stephenson said, referring to Austin’s red-tape cutting and clearing the way for fiber upgrades with eased permit requirements and pole attachment policies. “We are redirecting investment to fiber to the home deployment, and in fact we are going to launch the service in Dallas this summer.”

Stephenson added that where U-verse faces significant competition from a “new competitor,” AT&T will be “a little more aggressive and assertive in deploying that technology around the country.”

That most likely means AT&T will choose fiber to the home service in areas facing imminent competition from Google Fiber or another similar provider.

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Most Cutting Edge Gigabit Broadband Networks are Community-Owned

Greenlight announces gigabit service for Wilson, N.C.

Greenlight announces gigabit service for Wilson, N.C.

Claims from critics that government-owned Internet Service Providers would bring ineptly managed, behind-the-times broadband are belied by the reality on the ground.

Network World highlighted several cities offering consumers and/or businesses gigabit broadband service from publicly owned Internet providers. All of them stand alone with no commercial competitor willing or able to compete on speed. In fact, most of the communities offering their own Internet service do so because incumbent cable and phone companies showed no interest in upgrading or expanding their services or offer them at prohibitive prices. For many of the towns involved, the only way to get 21st century broadband was to build it themselves.

Cable companies like Time Warner Cable scoff at the need for superfast broadband speeds, claiming customers are not interested in gigabit Internet. After the Federal Communications Commission issued a challenge for every state in the U.S. to reach 1Gbps Internet speeds in at least one community by 2015, then chief financial officer Irene Esteves said 1,000Mbps service was unnecessary and the cable company wouldn’t offer it because there was little demand for it.

While Esteves was telling reporters gigabit speeds were irrelevant, Time Warner Cable’s lobbyists were working behind the scenes to make sure none of their community-owned competitors offered it either, cajoling state officials to pass legislation that would effectively ban publicly owned broadband competition. Time Warner, along with other cable and phone companies evidently feel so threatened, they have successfully helped enact such bans into law in 20 states.

The record is clear. The best chance your community has of getting gigabit speeds is to rally your local government or municipal utility to offer the service you are not getting from the local cable/phone duopoly anytime soon.

Chanute, Kansas

The city of Chanute, Kan. is fighting back against incumbent phone and cable companies trying to ban municipal-owned ISPs in the state.

The city of Chanute, Kan. is fighting back against incumbent phone and cable companies trying to ban municipal-owned ISPs in the state.

With just 9,000 residents barely served by AT&T and the routinely awful Cable ONE, Chanute knew if it wanted 21st century broadband, it was unlikely to get it from the local phone and cable company. Chanute has owned a municipal fiber network since 1984 and has been in the Internet provider business since 2005. Now the city is working towards a fiber to the home network for residents while AT&T is lobbying Washington regulators to let the company scrap rural landline and DSL service across Kansas and other states.

The city is taking a stand against the latest effort to ban community broadband networks in Kansas. It’s a rough fight because Kansas lobbyists get to write and introduce corporate-written telecom bills in the legislature without even the pretext of the proposed legislation originating from someone actually elected to office. SB 304, temporarily withdrawn for “tweaking,” shreds the concept of home rule — allowing local communities to decide what works best for them. Instead, AT&T, Cable ONE, Comcast, Cox, and other telecom companies will get to make that decision on your behalf if the bill re-emerges in the legislature and passes later this year.

“We’re taking a leadership position to do something about it. I’d hate to sit here and keep bashing AT&T and Cable One. They don’t care. All they care about is paying dividends back to their stockholders,” Chanute’s utility director Larry Gates told Network World. “My feeling – this is mine, it’s probably not the city’s, but it’s mine – is I wouldn’t care if we ever made a dime on this network, as long as it would pay for itself. If it could increase and do the things with education, health, safety, and economic development – man, that’s a win. That’s a huge win.”

Chattanooga, Tennessee

The "headquarters" of the Taxpayers Protection Alliance is in the basement of this building in suburban Washington. It's a pretty small alliance funded by mysterious "private" donors.

The “headquarters” of the Taxpayers Protection Alliance is in the basement of this building in suburban Washington.

EPB Broadband is the best argument community broadband advocates have to counter Big Telecom propaganda that community-owned broadband is a failure waiting to happen. EPB has received national acclaim by delivering gigabit broadband to consumers and businesses that Chattanoogans can’t get from AT&T and Comcast. EPB is Chattanooga’s municipally owned electric utility and originally laid fiber to power its Smart Meter project to better manage its electric system. With near infinite capacity, why not share that network with the community?

EPB routinely embarrasses its competition by offering highly rated local customer service and support instead of forcing customers to deal with offshore call centers rife with language barriers. Customer ratings of AT&T and Comcast are dismal — rock bottom in fact — but that isn’t the case for EPB, embraced by the local community and now helping to foster the region’s high-tech economic development.

Santa Monica, California

Santa Monica City Net does not serve residential customers, but a lot of locals probably wish it did. Greater Los Angeles has been carved up between bottom-rated Charter Communications and never-loved Time Warner Cable. Time Warner customers in LA will soon get access to 100Mbps broadband. Businesses in downtown Santa Monica can already get broadband from City Net at speeds up to 10Gbps.

Lafayette, Louisiana

LUS Fiber has had a very tough battle just getting service off the ground. Its two competitors are AT&T and Cox, and the fiber to the home provider had to work its way through legal disputes and a special election to launch service. Even to this day, corporate front groups like the Taxpayers Protection Alliance are still taking potshots at LUS and other municipal providers. TPA president David Williams refuses to identify where the money comes from to fund TPA’s operations. It’s a safe bet some of it comes from telecom companies based on the TPA’s preoccupation with broadband issues. The group always aligns itself with the interests of phone and cable companies.

Cable and phone companies that fund sock puppet groups like TPA could have spent that money to upgrade broadband service in communities like Lafayette. Instead, they cut checks to groups like the Taxpayers Protection Alliance, headquartered in a basement rental unit in suburban Washington, D.C.

Burlington, Vermont

Burlington Telecom’s troubled past is a poster child for anti-municipal broadband groups. The provider’s financial problems are often mentioned by groups fighting public broadband. To be sure, there are successes and failures in any industry and inept marketing by BT several years ago hurt its chances for success. Its competition is Comcast and FairPoint Communications, which means usage-capped cable broadband or slow speed DSL. BT sells a gigabit broadband alternative for $149.99 a month for those signing a 12-month contract. Comcast charges $115 a month for 105Mbps service — about ten times slower than BT’s offering.

Tullahoma, Tennessee

The Tennessee Telecommunications Association is appealing to the state government to keep publicly-owned broadband competitors out of their territories.

The Tennessee Telecommunications Association is appealing to the state government to keep publicly owned broadband competitors out of their territories.

LighTUBe, the telecommunications branch of the Tullahoma Utilities Board (TUB), announced its gigabit Internet offering in May 2013, says Network World. The magazine suspects the provider is interested in commercial, not residential customers.

That no doubt comes as a relief to the Tennessee Telecommunications Association, which represents the state’s independent phone companies. Last month, more than a dozen executives from those companies invaded the state capital to complain that municipal providers were threatening to invade their territories and offer unwanted competition.

“We are particularly concerned about four bills that have been introduced this session,” says Levoy Knowles, TTA’s executive director. “These bills would allow municipalities to expand beyond their current footprint and offer broadband in our service areas. If this were to happen, municipalities could cherry-pick our more populated areas, leaving the more remote, rural consumers to bear the high cost of delivering broadband to these less populated regions.”

Among the companies that want to keep uncomfortable public broadband competition out of their territories: North Central Telephone Cooperative, Loretto Telecom, Twin Lakes Telephone Cooperative, Highland Telephone Cooperative, TDS Telecom, United Communications, Ben Lomand Connect, WK&T Telecommunications, Ritter Communications, Ardmore Telephone Company, and RepCom.

Bristol, Tennessee

Bristol is unique because its city limits are effectively in Tennessee and Virginia. Neither state has gotten much respect from incumbent telephone and cable companies, so BTES — the electric and telecom utility in Bristol — decided to deliver broadband service itself. The network is now being upgraded to expand 1Gbps service, and it represents an island in the broadband backwater of far eastern Tennessee and western Virginia and North Carolina.

closedCedar Falls, Iowa

Iowa has never been a hotbed for fast broadband and is the home to the largest number of independent telephone companies in the country. Cedar Falls Utilities is one of them and is trying to change the “behind the rest” image Iowa telecommunications has been stuck with for years. The municipal telecom provider has boosted broadband speeds and announced gigabit broadband last year.

Wilson, N.C.

Greenlight has been providing fiber to the home service for several years, and its presence in the middle of Time Warner Cable territory was apparently the last straw for the cable company, which began fiercely lobbying for a municipal broadband ban in North Carolina. Thanks to a massive cash dump by Koch Brothers’ ally Art Pope, the Republicans took control of the state government between 2010-2012. Many of the new legislators have an ongoing love affair with ALEC — the corporate front group — and treat its database of business-ghostwritten bills like the Library of Congress. What AT&T, CenturyLink, and Time Warner Cable want, they now get.

With a broadband ban in place, Greenlight can’t expand its territory, but it can increase its broadband speeds. Time Warner Cable tops out at 50Mbps for almost $100 a month. For $49.95 more you can get 1,000Mbps from Greenlight. Instead if competing, TWC prefers Greenlight to simply go away, and the North Carolina legislature has shown it is always ready to help.

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Hawaiian Telcom Unleashing 500Mbps Broadband on Oahu

hawtelHawaiian Telcom is introducing fiber to the building Internet speeds of up to 500/50Mbps to residential and business customers who need the fastest Internet speeds in Hawaii.

The telephone company has managed to outmaneuver Oceanic Time Warner Cable, its chief competitor, with up to five times faster speed than the cable company’s current top-tier of 100/5Mbps.

oahu“Hawaiian Telcom’s expansive deployment of fiber optic technology is connecting Hawaii to the world with speeds never before seen in the islands,” said Eric K. Yeaman, Hawaiian Telcom’s president and CEO. “We’ve invested $125 million in our next-generation fiber network and systems and there is more to come. As a committed local company with deep roots in the islands, Hawaiian Telcom is dedicated to meeting Hawaii’s bandwidth needs today and into the future.”

HawTel has already deployed a fiber to the neighborhood network across parts of Oahu similar to AT&T’s U-verse, delivering up to 50Mbps broadband over existing home or business copper telephone wiring. To boost speeds further, the phone company will extend a fiber connection directly to any subscriber signing up for faster speeds. The available fiber tiers are 100Mbps ($95), 200Mbps ($200), or 500Mbps ($300). A wireless gateway and security software is provided at no extra charge.

Yeaman says faster speeds are increasingly important in homes where multiple Internet-enabled devices share a single broadband connection. HawTel expects to offer its enhanced broadband and television products to 240,000 Hawaiian homes when the project is complete.

Interested customers can begin signing up for the fiber to the home broadband service on March 2.

Thanks to Stop the Cap! reader Aaron for the news tip.

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Unlike Here, British Broadband Customers Satisfied With Their Broadband Providers

Plusnet offers DSL and fiber broadband plans (in some areas) that offer budget-priced capped or unlimited use plans.

Plusnet offers DSL and fiber broadband plans (in some areas) that offer budget-priced capped or unlimited use plans.

While North American cable and phone broadband providers are among the most-hated companies on the continent, in the United Kingdom, customers gave generally high scores to their Internet providers.

PC Advisor partnered with Broadband Genie, an impartial, independent, and consumer-focused commercial broadband comparison service. Together they engaged an independent survey company (OnPoll) to survey 3,000 broadband users, chosen at random, in late 2013 and early 2014. They asked those users how happy they were with their ISP, tested the speed and reliability of their connections, and found out other valuable tidbits, such as how much they were paying, and for what exactly. Altogether, more than 10,000 U.K. broadband users contributed to the data that made an in-depth assessment of British broadband possible.

The results might stun those on the other side of the Atlantic. Unlike in Canada and the U.S., British broadband users are satisfied overall with their providers, and are enthusiastic about recommending many of them to others. Even the worst-performing provider – BE – still had a 46% recommendation rating, and the company was sold to BSkyB well over a year ago and is in the process of being merged with Sky’s broadband service.

Around 68 percent of British broadband users responding still rely primarily on various flavors of DSL for Internet service. But BT, the national telephone company, is in the process of upgrading facilities and dramatically increasing the amount of fiber optics in its network. The result is what the Brits call “Super Fast Broadband.” Back here, we call it fiber to the neighborhood service similar to AT&T’s U-verse or Bell’s Fibe. In many cases, improved service is providing speeds much closer to 25Mbps vs. the 1-6Mbps many customers used to receive. The upgrade is an important development, especially in rural Britain, often left without Internet access.

Cable broadband is much more common in North American than in the United Kingdom. While cable television became dominant here, the British favored small satellite dishes like those used by DirecTV or Dish customers. With BT dominating wired infrastructure, the government required the company to open its landline network to third-party providers. Some cable companies do exist in England, but they hold only a 12% broadband market share, even lower than fiber to the home service now at nearly 20%.

Great Britain treats broadband as a national priority, and although the current government has controversially settled for a hybrid fiber-copper network instead of delivering fiber straight to every British home, it’s a considerable improvement over what came before, especially in rural areas. Usage caps that used to dominate British broadband plans are now an option for the budget-minded. Unlimited use plans are becoming more mainstream.

With all the upgrade activity and improved service, the Brits have gotten optimistic about their broadband future. Only 12% of those surveyed loathe their broadband supplier. Another 20% were neutral about recommending their ISP, but 51% considered themselves satisfied and another 17% considered their provider top rate. Many in Britain even expect their Internet bill will decrease in 2014, and compared with North American prices, it’s often very low already.

The average price paid by customers of various British ISPs (excluding line rental)

The average price paid by customers of various British ISPs (excluding line rental)

Average speed received by customers varies depending on the technology. Virgin operates cable broadband, Plusnet uses a mix of DSL and fiber, while the slower performers are primarily ADSL.

Average speed test results per ISP (kbps)

  • Virgin: 27,266

    virgin-media-union-logo

    Was top-rated for broadband reliability.

  • Plusnet: 24,529
  • BT: 13,164
  • TalkTalk: 6,910
  • EE: 6,818
  • Demon: 6,586
  • Sky: 5,942
  • Eclipse: 5,786
  • O2: 5,642
  • Be: 5,458
  • AOL: 3,809
  • Post Office: 3,255

Overall ratings and reviews from PC Advisor found Virgin Media (cable) and Plusnet (DSL/Fiber) near tied for top ratings.

http://www.phillipdampier.com/video/PC Advisor Best cheapest fastest broadband UK ISPs rated 2-19-14.mp4

PC Advisor talks about this year’s British ISP review, which reveals Brits are generally satisfied with their broadband speeds and pricing. (3:51)

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Google Fiber Proposes Major Expansion, But Continues to Ignore the Northeast/Mid-Atlantic

Google has proposed expanding its gigabit fiber network to nine metropolitan areas around the United States, but none of them include cities in the Mid-Atlantic and Northeast dominated by Time Warner Cable, Comcast, and Verizon FiOS.

google fiber

Altogether, the expansion project could bring fiber to the home Internet service to 34 new cities:

  • Arizona: Phoenix, Scottsdale, Tempe
  • California: San Jose, Santa Clara, Sunnyvale, Mountain View, Palo Alto
  • Georgia: Atlanta, Avondale Estates, Brookhaven, College Park, Decatur, East Point, Hapeville, Sandy Springs, Smyrna
  • North Carolina: Charlotte, Carrboro, Cary, Chapel Hill, Durham, Garner, Morrisville, Raleigh
  • Oregon: Portland, Beaverton, Hillsboro, Gresham, Lake Oswego, Tigard
  • Tennessee: Nashville-Davidson
  • Texas: San Antonio
  • Utah: Salt Lake City

Google’s Fiber Blog:

google fiberNow that we’ve learned a lot from our Google Fiber projects in Kansas City, Austin and Provo, we want to help build more ultra-fast networks. So we’ve invited cities in nine metro areas around the U.S.—34 cities altogether—to work with us to explore what it would take to bring them Google Fiber.

We aim to provide updates by the end of the year about which cities will be getting Google Fiber. Between now and then, we’ll work closely with each city’s leaders on a joint planning process that will not only map out a Google Fiber network in detail, but also assess what unique local challenges we might face. These are such big jobs that advance planning goes a long way toward helping us stick to schedules and minimize disruption for residents.

We’re going to work on a detailed study of local factors that could affect construction, like topography (e.g., hills, flood zones), housing density and the condition of local infrastructure. Meanwhile, cities will complete a checklist of items that will help them get ready for a project of this scale and speed. For example, they’ll provide us with maps of existing conduit, water, gas and electricity lines so that we can plan where to place fiber. They’ll also help us find ways to access existing infrastructure—like utility poles—so we don’t unnecessarily dig up streets or have to put up a new pole next to an existing one.

While we do want to bring Fiber to every one of these cities, it might not work out for everyone. But cities who go through this process with us will be more prepared for us or any provider who wants to build a fiber network. In fact, we want to give everyone a boost in their thinking about how to bring fiber to their communities; we plan to share what we learn in these 34 cities, and in the meantime you can check out some tips in a recent guest post on the Google Fiber blog by industry expert Joanne Hovis. Stay tuned for updates, and we hope this news inspires more communities across America to take steps to get to a gig.

Google does not guarantee every community will actually get the service, and a read between the lines makes it clear that a close working relationship between Google and city officials and utilities will be essential for projects to move forward. Bureaucratic red tape could be a fiber-killer in some of these communities, as could an intransigent utility fighting to keep Google fiber off utility-owned poles.

Google continues to completely ignore the northeastern United States for fiber expansion. Analysts suggest Google will not enter areas where fiber broadband service already exists, and this region of the country is home to the largest deployment of Verizon’s FiOS. Despite the fact Verizon has canceled further expansion, and large sections of the region have little chance of seeing a fiber upgrade anytime soon, Google seems more interested in serving the middle of the country and fast growing areas including North Carolina, Georgia, Phoenix and Texas. Its choice of San Jose obviously reflects the presence of Silicon Valley.

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