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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.

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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.

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Omitted from AT&T’s GigaPower Fiber to the Press Release: 1Gbps for 1%, <100Mbps for 99%

Phillip Dampier July 24, 2014 AT&T, Broadband Speed, Competition, Consumer News No Comments
Notice the word "may"

AT&T’s Fiber Fairy Tale

Holding your breath waiting for AT&T’s GigaPower 1Gbps U-verse upgrade to arrive in a town near you is hazardous to your health.

Despite a blizzard of press releases promoting the forthcoming arrival of gigabit Internet access from AT&T, the fine print reveals as little as one percent of some communities will actually get the upgrades.

In Winston-Salem, N.C., city officials cannot even get a firm commitment from AT&T that it will deliver the faster service to the 63 businesses the city chose as early candidates for the fiber upgrade.

In June, the city and AT&T signed an agreement for gigabit broadband expansion using AT&T’s GigaPower U-verse platform. But AT&T largely gets to decide where, when and even if it will invest in upgraded service. The city did not impose many conditions beyond a requirement that AT&T provide up to 20 free Internet connections to community sites with a one-time installation cost of $300 to $500. Another 20 connections would be provided to small to mid-size businesses, with no obligation to buy services.

In response, AT&T said it would only commit to reviewing the city’s list and “make an effort to serve the proposed locations if they are in the vicinity of where service will be available.”

If those locations fall outside of AT&T’s plans, no gigabit fiber.

A significant indicator of the true extent of AT&T’s expansion plans is whether the company is allocating capital spending commensurate with the costs of running fiber optic cable to individual homes and businesses. So far, AT&T has not. With no obligation to deliver the service AT&T is implying it will offer, the company is free to wire a handful of technology parks, businesses, and new housing developments and claim to have met its commitment, despite the fact 99 percent of area residents have no access to the faster speeds.

For the benefit of low-income residents who lack affordable Internet access, AT&T also promised it would offer some lower-speed Internet connections in a limited number of apartment complexes in low-income areas.
Here are the sites nominated by the city of Winston-Salem for AT&T gigabit broadband. AT&T’s response: ‘Maybe.’

Community sites: Aids Care Service; Boys & Girls Clubs at New Walkertown Road and Reynolds Park; Brown & Douglas Neighborhood Center; Russell Recreation Center; Liberty CDC; Community Care Center; ElBuen Pastor; Forsyth Technical Community College’s Woodruff Center; Gateway YWCA; Knollwood Baptist Church; Little Creek Neighborhood Center; Malloy/Jordan East Winston Heritage Center; MLK Jr. Center; Reynolda Branch library; S.G. Atkins CDC; SciWorks; Sedge Garden Center; Shepherd’s Center; South Fork Center; Southside Library; United Metropolitan Church; Winston Lake YMCA.

Small- to mid-size businesses: Bellomy Research; Campus Partners; Carolina Liquid Chemistries Corp.; Center for Design Innovation; CML Microcircuits (USA); Computer Credit Inc.; Computing Solutions Group Inc.; COR365 Innovation Solutions; Dairy Fresh Inc.; DataChambers LLC; Davenport Transportation Consulting; Debbie’s Staffing Service; Eastridge Technology Inc.; Exhibit Works; Flywheel; IMG College; Interact 911; KeraNetics LLC; Key Services Inc.; Kings Plaza; MissionMode; Ocular Systems; Odigia; OnceLogix LLC; Out of Our Minds Animation Studios Inc.; Page’s Sporting Goods; PhoneTree; Piedmont Propulsion; Segmented Marketing Solutions Inc.; Small Footprint Inc.; SolidSpace LLC; Special Event Services; Sunrise Technologies Inc.; The Clearing House Payment Center; Triad Semiconductor; TrueLook; Voyss Solutions; Washington Perk site at Washington Park; West 3rd Street Media; West End Mill Works.

Source: City of Winston-Salem

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Major Verizon FiOS Speed Upgrade: Upstream Speed Now Equals Downstream

Phillip Dampier July 21, 2014 Broadband Speed, Competition, Consumer News, Verizon No Comments

faster fiosVerizon Communications today announced its FiOS Internet customers will be getting free speed upgrades that match upload and download speeds — the only provider in FiOS markets to offer speed equality.

Verizon will start transitioning qualifying current residential customers to higher upload speeds for free throughout the coming months, but we can help get you higher on the upgrade list if you keep reading. Later this year, existing and new FiOS small-business customers also will receive this upgrade.

“Faster upload speeds means better sharing experiences,” said Mike Ritter, Verizon’s chief marketing officer for consumer and mass business. “All Internet sharing – whether videos, large photo files or gaming – starts with uploading. FiOS all-fiber-optic technology offers a unique opportunity to enhance our customers’ Internet experience on a mass scale by increasing our upload speeds to equal to our industry-leading download speeds. As the Internet of Things becomes a reality, equal download and upload speeds will become essential.”

Verizon’s upgrade also lets the company point out a shortcoming of most of its cable competitors, upstream speeds lag far behind downstream speeds. Many cable operators still only offer no better than 5Mbps upload speeds, even while offering 50, 100, or 150Mbps for downloads.

Verizon says it noticed upload activity has been on the increase for some time, and with the upstream speed upgrades, it expects double the upload activity it sees today by 2016.

“Verizon’s decision to give every FiOS Internet customer upload speeds that mirror its industry-leading download speeds is a step forward for U.S. digital consumers – and unique among the major U.S. broadband Internet providers,” said Matt Davis, program director of consumer multiplay and broadband services research for IDC. “Because the upgrade is free, it delivers tremendous value to FiOS subscribers and strongly positions Verizon to meet the growing demand for upstream Internet speed.”

Verizon FiOS also lacks usage caps or consumption billing, giving customers a worry-free Internet experience that does not carry the risk of surprise charges on a future bill.

Here are Verizon’s new speed tiers:

140720_BenefitsofFast_432x315

  • 15/5Mbps is now 15/15Mbps
  • 25/5Mbps is now 25/25Mbps
  • 50/25Mbps is now 50/50Mbps
  • 75/35Mbps is now 75/75Mbps
  • 150/65Mbps is now 150/150Mbps
  • 300/65Mbps is now 300/300Mbps
  • 500/100Mbps is now 500/500Mbps

The free speed upgrades will begin with customers enrolled in Verizon’s My Rewards+ program. You can get on the upgrade list today by enrolling in the rewards program on the My Rewards+ websiteMy Rewards+ is Verizon’s free loyalty program that rewards customers for paying a bill online, renting or buying videos on demand, or in recognition of a birthday, service anniversary or other event. My Rewards+ members can use earned points for Visa Prepaid Cards or other gift cards good at participating merchants such as Starbucks Coffee, L.L. Bean, Panera Bread, Target, Amazon, Dunkin’ Donuts, Staples and others. Customers can also choose to donate their rewards to a charity of their choice.

Verizon is running several promotions (until 9/20/2014) for new customers who want in on the new FiOS speeds. The most popular Triple Play promotion is their 25/25Mbps Internet service, which also includes Preferred HD TV and nationwide home phone service (equipment rental required). This includes a two-year price guarantee for $89.99 per month when ordered online and $99.99 per month otherwise (not including equipment charges, taxes and fees). In addition, new customers can receive a free LG G Pad 8.3 LTE or up to $200 off any other tablet available from Verizon Wireless if they are willing to take out a new, two-year service agreement. This part of the promotion is less attractive to us because the offer requires the tablet be activated on the Verizon Wireless network, which means ongoing charges.

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France’s Bouygues Telecom Announces 1Gbps Fiber, TV, Phone Package for $35/Month

Phillip Dampier June 26, 2014 Broadband Speed, Competition, Consumer News 1 Comment

173x116_Logo-BT_WSCustomers of Paris-based Bouygues Telecom in some of France’s largest cities will soon have access to 400Mbps fiber to the home broadband (with an upgrade to 1Gbps later this year), as well as a television and phone package that combined will cost $35.43 a month.

The company’s new fiber offer commences June 30 and comes as a result of fierce competition for the French broadband customer.

Bbox Sensation Fiber is available from both fiber to the home and fiber to the building connections throughout urban areas in France, including Paris, Lyon, Marseille, Nice, Toulouse and Bordeaux.

Fiber continues to gradually replace older copper-base wire networks in France. But unlike in North America, European telephone companies believe their future isn’t only in selling wireless. Upgrading those networks to fiber to the home service allow companies to sell bundled packages of phone, wireless, television and broadband Internet access.

Bouygues Telecom’s fiber to the home network now reaches 3.3 million French homes with more to come. Its older fiber to the neighborhood network reaches another 5 million customers.

Customers who sign up for the fiber to the home service by the end of August will get two months free

Here are the details:

macgpic-1402559468-29638698693873-sc-opBbox Sensation Fiber (first phase) includes:

Internet

  • 400Mbps service with upgrade to 1Gbps by the end of this year;
  • 50GB cloud storage

Television

  • Up to 170 TV channels, including 29 HD channels
  • DVR with 300GB storage
  • Bbox Video on Demand: Thousands of multilingual titles available in HD and DTS
  • Bbox Games: Over 50 multiplayer video games accessible on the network at any one time
  • Multi-Screen: Watch on portable devices

Telephone

  • Unlimited calls to mobiles in France and the French commonwealth, U.S.A., Canada, China, Singapore and South Korea;
  • Unlimited calls to fixed landlines in 120 countries.

Availability

This fiber offer available in Paris, Lyon, Villeurbanne, Marseille, Toulouse, Nice, Bordeaux, Issy les Moulineaux, Boulogne Billancourt, Courbevoie, Aubervilliers, Charenton le Pont, Saint Maurice, Alfortville, Maisons Alfort, Neuilly sur Seine, Puteaux, Chatillon Montrouge Vanves Malakoff, Levallois-Perret, Cergy Saint-Cloud, Garches, Palaiseau, Antony, Clamart, Rueil Malmaison, and Sèvres.

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We’ve Been Robbed: Slovak Telecom Announces Free Speed Upgrade: 300/30Mbps for $27 a Month

Slovak_Telekom_(logo)While your Internet bill is likely north of $50 a month, customers of Slovak Telecom in the eastern European nation of Slovakia will get a free speed upgrade to 300/30Mbps effective Aug. 1, with no change in price.

Slovak Telecom customers on its fiber to the home network subscribed to the super premium “Magi Internet XL” plan will continue to pay just over $27 a month for the service. Customers will see the speed upgrades gradually roll out across the service area over the summer and fall. Customers will be given new equipment to support the new speeds.

map-slovakiaMeanwhile, a competing fixed line provider, Slovanet, is taking a cue from Google Fiber and polled residents of the city of Dunajska Streda where it should deploy its fiber to the home service first. Slovanet customers will be able to buy 100Mbps fiber broadband through its subsidiary MadNet, along with a 100-channel TV package and phone service.

The broadband package alone costs $31 a month, more expensive than Slovak Telecom, but it comes with some stunning promotions for customers, starting with a $1.36 installation fee. The other generous offers: a Lenovo brand tablet for $1.36, a cordless phone for $1.36, and a choice of wireless routers as low as $1.36. An add on wireless package is also promotionally priced at $1.36.

Slovanet offers a 20-channel basic cable TV package at no charge to current customers and a 35-channel TV package that includes many of the most popular channels in Slovakia for $12 a month. Phone service is free if you are willing to pay 5¢ per minute to numbers of non-Slovanet customers (calling other Slovanet customers is free).

If you want unlimited local/regional calling, the phone service costs $5.29 a month. Unlimited long distance can be added for $10.77 a month.

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More Evidence of AT&T’s Phoney Phantom Fiber Expansion: Significant Cuts in Wireline Investments

Phillip Dampier June 3, 2014 AT&T, Broadband Speed, Competition, Consumer News 1 Comment

phantom gigapowerAT&T’s claim it wants to expand gigabit fiber to the home service to as many as 100 cities nationwide requires closer inspection on news this week it has slashed spending on its wireline business.

Investors knocked AT&T’s share price today as they learned earnings from AT&T’s wired networks will be lower than expected.

TheStreet reported this morning the spending cuts are so significant, they are creating a financial risk for a number of AT&T’s major vendors.

Research firm Jefferies issued a research note warning that AT&T’s spending cuts began last month and seem to be ongoing. As a result the companies that have the most exposure to AT&T’s wireline business are at increased financial risk. Those suppliers include optical fiber equipment manufacturer Alcatel-Lucent, as well as Ciena, Juniper, ADTRAN, Finisar, and JDS Uniphase. As a result, all but Finisar saw their share prices drop significantly in morning trading.

Earlier today, AT&T reported it was ahead of schedule to complete its Project VIP expansion of its 4G LTE wireless and U-verse networks. As U-verse expansion nears an end, vendor orders may be in decline. Wall Street analysts see no evidence AT&T is preparing to spend much on any other expansion efforts, including fiber to the home service.

As Broadband Reports’ notes, without significant capital to invest in fiber upgrades, they are not going to happen.

These cuts make it hard to take the company’s claims of meaningful 1 Gbps fiber expansion seriously as there’s simply no budget cordoned off for such a project (“Project VIP” funds are already in use on other efforts). While AT&T has the press believing they’re deploying 1 Gbps to “up to 100 cities,” AT&T’s shrinking CAPEX tells a different story entirely.

Fiber to the home service is more costly than AT&T U-verse’s fiber to the neighborhood service because it requires a fiber cable be brought directly to each home or business — a more costly endeavor that requires careful cable burial or overhead drop line replacement, as well as the possibility of in-home wiring adjustments. Considering the billions spent on U-verse expansion to date, at least as much will be required to upgrade to fiber to the home service and there are no signs AT&T is ready to invest in anything beyond press releases.

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CenturyLink Unfazed by AT&T/Verizon’s Rural Wireless Broadband; ‘Caps Too Low, Prices Too High’

centurylinkCenturyLink does not believe it will face much of a competitive threat from AT&T and Verizon’s plans to decommission rural landline service in favor of fixed wireless broadband because the two companies’ offers are too expensive, overly usage-capped and too slow.

Both AT&T and Verizon have proposed mothballing traditional landline service in rural areas because both companies claim wireline financial returns are too low and ongoing maintenance costs are too high. In its place, both companies are developing rural fixed wireless solutions for voice and broadband service that will rely on 4G LTE networks.

CenturyLink does not traditionally compete against either AT&T or Verizon because their landline service areas do not overlap. But as both AT&T and Verizon Wireless continue to emphasize their nationwide wireless networks, independent phone companies are likely to face increased competition from wireless phone and broadband services.

CenturyLink isn’t worried.

“About two-thirds of our customers can get access to 10Mbps or higher [from us and] that continues to increase year by year,” CenturyLink chief financial officer Stewart Ewing told attendees at Bank of America Merrill Lynch’s 2014 Global Telecom & Media Conference. “Our belief is that with the increasing demands customers have for bandwidth — the Netflix bandwidth requirement — just the increasing amount of video that customers are watching and downloading over their Internet pipes, we believe will drive customers to using a provider that basically has a wire in their home because we believe you will get generally higher bandwidth and a much better experience at lower cost.”

Ewing

Ewing

CenturyLink customers consume an average of slightly less than 50GB of Internet usage per month, and that number is growing. Ewing said that CenturyLink has long believed that as bandwidth demand increases, wireless becomes less and less capable of providing a good customer experience.

“At this point, we don’t really have any concerns because people on the margin — the folks that don’t use much bandwidth — probably use a wireless connection today to download,” Ewing said. “But as the bandwidth demands grow, the wireless connection becomes more and more expensive and that could tend to drive people our way. So as long as we have 10Mbps or better to the customers, we don’t really think there is that much exposure.”

CenturyLink does not measure the difference in Internet usage between urban and rural residential customers, but the company suspects rural customers might naturally use more because alternative outlets are fewer in number outside of urban America.

“Folks in rural areas might actually can use Internet more for buying things that they can’t source [easily], but it’s hard to really count,” said Ewing. “I think our customers in the rural areas probably are not that much different from folks in urban areas.”

Prism is CenturyLink's fiber to the neighborhood service, similar to AT&T U-verse. It is getting only a modest expansion in 2014.

Prism is CenturyLink’s fiber to the neighborhood service, similar to AT&T U-verse. It is getting only a modest expansion in 2014.

CenturyLink’s largest competitor remains Comcast, which co-exists in about 40% of CenturyLink’s markets. The merger with Time Warner Cable won’t have much impact on CenturyLink, increasing Comcast’s footprint in CenturyLink territory by only about only 6-7%. CenturyLink believes most of any new competition will come in the small business market segment. Comcast’s residential pricing is unlikely to attract current CenturyLink customers in Time Warner Cable territory to consider a switch to Comcast if the merger is approved.

Ewing also shared his thinking about several other CenturyLink initiatives that customers might see sometime this year:

  • Don’t expect CenturyLink to expand Wi-Fi hotspot networks. The company found they are difficult to monetize and is unlikely to expand them further;
  • Any change in the FCC’s definition of minimum broadband speed to qualify for federal broadband expansion funds would slow rural broadband expansion. Ewing admitted a 10Mbps speed minimum is considerably more difficult to achieve over DSL than a 4 or 6Mbps minimum;
  • Don’t expect any more merger/acquisition activity from CenturyLink in the Competitive Local Exchange Carrier business. CenturyLink shows no sign of pursuing Frontier, Windstream, FairPoint, or other independent phone companies. It is focused on expanding business services, where 60% of CenturyLink’s revenue now comes;
  • CenturyLink fiber expansion will primarily be focused on reaching business offices and commercial customers in 2014;
  • CenturyLink will only modestly expand PrismTV, its fiber-to-the-neighborhood service, to an additional 300,000 homes this year. The company now offers the service to two million of its customers, with 200,000 signed up nationwide. Last year, CenturyLink expanded PrismTV availability to 800,000 homes.
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TDS Telecom Ditches Copper, Fires Up 1,000Mbps Fiber Service in New Hampshire

fiberville-cardThe town of Hollis, N.H., population 7.600, is the first community in New Hampshire to receive gigabit broadband, courtesy of the local telephone company.

TDS Telecom charges less than $100 a month (when bundled with other services) for gigabit broadband speeds on the fiber to the home network TDS introduced after scrapping obsolete copper telephone wiring.

“What can you do with 1Gig? Whatever you want,” says Matt Apps, manager of Internet product management and development at TDS. “This state-of-the art connection is one hundred times faster than the average connection. It’s only available in only a few communities across the country. With 1Gig, you experience the Internet full-throttle.”

The 1,000/400Mbps service is an upgrade for Hollis, which used to receive speeds up to 300Mbps. TDS bundles its Internet package with 260-channel cable television service delivered over its all-digital Mediaroom platform, and telephone service.

TDS’ 1Gig Internet service includes a free subscription to Remote PC Support which provides unlimited access to technical expertise. Remote PC Support technicians help with device setup, Internet troubleshooting, plus computer optimization and safety.

All of these areas in Hollis now have fiber service available.

All of these areas in Hollis now have fiber service available.

Customers looking for more budget-priced packages will still find plenty-fast Internet access available for less on the fiber network:

  • 1,000/400Mbps: $99.95/mo
  • 300/120Mbps: $75.00/mo
  • 100/40Mbps: $35.00/mo
  • 50/20Mbps: $25.00/mo
  • 15/2Mbps: $19.95/mo
  • 2-5Mbps/512kbps: $14.95/mo

Customers bundling a TV package with Internet service get a $20 monthly discount off the total price of both packages.

TDS‘ Fiberville is already established in Hollis, but will also be forthcoming in Farragut, Tenn., and other New Hampshire communities including: Andover, Boscawen, New London, Salisbury, Springfield, Sutton, and Wilmot.

Click on each community name to learn the current status of the fiber project.

Customers who enroll as fiber service first becomes available get free whole-house installation and special discounts for being early adopters.

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Verizon’s Idea of a “Modest Rate Increase” in New Jersey: 440%; $15 Billion Collected for Phantom Fiber

Verizon-logoWhile the New Jersey Board of Public Utilities was able to quickly settle its differences with Verizon by granting the phone company’s wish to walk away from its commitment to offer 45Mbps broadband across the state, New Jersey ratepayers are out $15 billion in excess phone charges levied since 1993 for promised upgrades many will never get.

The Opportunity New Jersey plan the state government signed with Verizon was supposed to expand advanced broadband across the state in return for “a modest amount of pricing flexibility” in the fees Verizon charged customers in New Jersey. But Verizon is not a modest company and a new report shows the phone company used the agreement to boost rates as much as 440% — primarily through ancillary surcharges including inside wire maintenance, wire investment, an investment recovery fee, a local number portability surcharge, merged local calling area charge, and various other charges for phone features including Caller ID, Call Waiting, etc.

Tom Allibone, the president of LTC Consulting joined forces with New Networks’ Bruce Kushnick to analyze more than 30 years of Verizon New Jersey phone bills and discovered when it comes to tallying up rate increases, Verizon’s addition skills are akin to taking out a bag of M&M’s and only counting the yellow ones.

“This Verizon New Jersey bill from April 2002 [...] has an “FCC Subscriber Line Charge”, which was $6.21 cents per line. Verizon’s quote doesn’t include this charge in their analysis of no increases between 1985 to 2008,” Kushnick writes. “The FCC Line Charge (it has many names), is on every local phone bill and the charge started in 1985. You can’t get service without paying this charge and the money does NOT go to fund the FCC but is direct revenue to Verizon New Jersey.”

verizonnjrateincreaseAfter adding up various other surcharges, Kushnick’s bill increased a lot.

“Add up the ‘Total Monthly Charges’ for 2 phone lines— It’s ugly,” Kushnick said. “While the cost of the ‘monthly charges’ was $25.62, there’s an extra $17.70 cents — 70%. I thought that Verizon said there were no ‘increases.’”

“Anyone who has ever bought a bundled package of services from Verizon (or the other phone or cable companies) knows that they all play this shell game; the price of service you have to pay is always 10-40% more than the advertised price. That’s because the companies leave out the cost of these ancillary charges and taxes in their sale pitch,” he added.

Verizon raised local residential service rates 79% in 2008, according to Kushnick. Business customers paid 70 percent more. Caller ID rates increased 38% — remarkable for a service that has a profit margin of 5,695%. But Verizon did even better boosting the charge for a non-published number by 38% — a service that has a 36,900% profit margin as of 1999 — the services are even cheaper to offer now.

Telephone service is one of those products that should have declined in price, especially after phone companies fully depreciated their copper wire networks — long ago paid off. Companies like Verizon have cut the budgets for outdoor wire maintenance and the number of employees tasked with keeping service up and running has been reduced by over 70 percent since 1985, dramatically reducing Verizon’s costs. But Verizon customers paid more for phone service, not less.

The cost of service might not have been as much of an issue had Verizon taken the excess funds and invested them in promised upgrades, but that has not happened for a significant percentage of the state and likely never will. Instead, they just increased company profits. More recently, Verizon has directed much of its investments into its more profitable wireless division.

Even though Verizon achieved total victory with the Christie Administration-dominated BPU, the company is still making threats about any future plans for investment.

“It’s important that regulators and legislators support public policies that encourage broadband growth in New Jersey rather than ones that could jeopardize the state’s highly competitive communications industry, or risk future investments by providers like Verizon,” wrote Sam Delgado, vice president of external affairs.

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  • Aaron: It was mentioned in the original post: http://stopthecap.com/2014/08/14/nys-assembly-leader-joe-morelle-plagiarizes-comcast-testimony-in-letter-to-...
  • Phillip Dampier: For those not aware, The NY State Assembly has been a Democratic-lead institution for eons and he is majority leader. Morelle is therefore a Democrat....
  • bop: Hey, what party does he belong to? Didn't see it in the write up. How come?...
  • BobInIllinois: Frontier, I left you in June, because you still only offer 3MB DSL in my neighborhood. Heck, that's 10+ year old speed, that GTE was offering prior t...
  • Paul Houle: Funny to see wilderotter flip flop so fast. Well, google fiber takes a good chunk of the market wherever it is sold. Frontier's need for fiber, ...
  • Phillip Dampier: Either way, it's bad. We will continue to confront any argument that promotes letting that customer service menace Comcast into New York. I have al...
  • Jim Livermore: If Mr. Morelle has an educated opinion on the merger, a half hour spent putting together his own thoughts doesn't seem out of line. I suspect that thi...
  • Gloria: I only have U-verse internet in Florida. I'm only in Florida 2-3 months out of the year and have been paying $25.50 for 12 Mbps. My promotion was go...
  • Aardvark: Then again, had you been in office back in the 1970's you could have gotten away with it even then! I was in High School in the late 70's too and it ...
  • mark: It's even more galling that an assemblyman from Rochester would shill for Comcast, when his constituents are deep in TWC country....
  • Aaron: While I think it's great that Greenlight Networks is finally stepping in where some competition is desperately needed, sadly their efforts are not wid...
  • Keith: I'm currently over my Cox "limit" by 150 GB and my answer to their threats is to download and stream as much data as I can/want to. My current best i...

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