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Zimbabwe: Fast Broadband is a “Basic Human Right”; Victoria Falls Going Fiber-to-the-Home: 100Mbps Service

zol-logo-newThe two largest telecom companies in Zimbabwe believe broadband access isn’t just an essential utility — it’s a basic human right and they are responding with major upgrade projects that will deliver speedier broadband, sometimes even faster than what most customers in North America can access.

Anything less than fiber-to-the-home service won’t do, according to Tom Tudor, chief marketing officer at Liquid Telecom. The company is expanding its fiber project in Zimbabwe with popular tourist destination Victoria Falls getting a major upgrade. Liquid Telecom believes data caps are incompatible with the concept of bringing the Internet to more people to “participate in, and benefit from, the digital revolution.” Liquid Telecom’s fiber service – Fibroniks, doesn’t have usage limits or hidden gotcha fees.

“Every day we lay new fiber which enables us to deliver what we refer to as ‘The Real Internet’, a superfast service which transforms how people access and share information,” Tudor said.

superfast-fibreAt the outset in Victoria Falls, Fibroniks will offer unlimited use packages up to 100Mbps, with a commitment customers can access whatever they want, whenever they want, at a guaranteed fixed monthly price. Liquid Telecom already supplies fiber service in the capital city of Harare, but Tudor believes getting into smaller communities in the country is essential.

“We believe that internet connectivity is a basic human right and so it is our mission to provide quality broadband to every person and business in Africa,” said Tudor.

It will bring a broadband revolution to Victoria Falls, a community of over 35,000 that has languished with ADSL and last generation wireless services like WiMAX and 3G, which offer speeds typically no higher than 512kbps.

Fibroniks also includes telephone service, which will cost a fraction of what Tel•One, Zimbabwe’s sole fixed landline provider, charges for service. Tel•One has focused most of its investment improving and expanding ADSL service over its existing landline network. Although Tel•One may end up reaching more Zimbabwe citizens faster that Liquid Telecom, the speeds Tel•One provides will be much slower than Liquid Telecom’s Fibroniks.

Liquid Telecom’s other fiber to the home projects are in Zambia, with plans to expand to Kenya, Rwanda, and two other African countries yet to be announced.

AT&T Expands 75Mbps U-verse Speeds in Seven Cities, But You Probably Don’t Qualify to Get Them

Phillip Dampier February 10, 2015 AT&T, Broadband Speed, Competition, Consumer News 5 Comments

75_internet_7_new_cities_blogAT&T Speed Increases to the Press Release are back, and an AT&T installer in Cleveland tells us you probably don’t qualify to get them just yet.

This week, AT&T has announced something less than gigabit broadband (High Speed Internet 75 – up to 75Mbps) for seven of its service areas:

  • Augusta, Ga.
  • Charleston, S.C.
  • Cleveland, Ohio
  • Columbus, Ohio
  • Fort Lauderdale, Fla.
  • Miami, Fla.
  • St. Louis, Mo.

“Introductory prices for the new 75Mbps high-speed speed option start as low as $39.95 a month when bundled with our award-winning U-verse TV and/or U-verse Voice services, and only $74.95 per month as a standalone service,” the company said on its consumer blog.

Laying aside the press release, an AT&T lineman in Cleveland tells Stop the Cap! most people should not expect to immediately qualify for the new 75Mbps speeds.

“Most will not be ready for the new 75Mbps tier except those in apartments or condominiums already served by fiber or other enhanced connections,” the technician tells us. “This is a way to quickly boost speeds on existing high-speed capable connections that already qualified for better speeds. AT&T will eventually broaden coverage, but only as we upgrade our network as a normal course of business.”

Stop the Cap! has found some customers in new housing developments and trailer parks where 75Mbps was introduced late last year have been able to sign up for 75Mbps service, but they are not getting the promised speeds.

“They emphasize it is ‘up to’ 75Mbps, but we barely reach 50Mbps here,” said El Paso resident Sam Kessler, who signed up for 75Mbps service in January. “It is better than what we used to get, but if they ever raise our bundled promotional price, we’ll go back to cable I guess.”

Speeds up to 75Mbps were introduced in December in parts of El Paso, Texas; Monterey, Calif.; Sacramento, Calif.; and Toledo, Ohio. AT&T also has plans to expand High Speed Internet 75 availability to additional U-verse markets.

WOW! Boosts Broadband Speeds to 110Mbps in Ohio and Alabama

Phillip Dampier January 22, 2015 Broadband Speed, Competition, Consumer News, Internet Overcharging, WOW! Comments Off on WOW! Boosts Broadband Speeds to 110Mbps in Ohio and Alabama

wowWOW! broadband customers in Ohio and Alabama can now sign up for Internet speeds as high as 110Mbps.

The communities getting the upgrades include parts of Columbus, Oh. and the Alabama cities of Auburn, Valley, Huntsville and Montgomery.

WOW! previously upgraded customers in Chicago, Detroit, part of Columbus and Cleveland, Evansville, Ind., Lawrence, Kan., and Pinellas, Fla.

“We recognize and embrace that consumers are increasingly using their Internet connection to stream video content to multiple devices,” Cathy Kuo, WOW! chief operating officer, said in a statement.

Many of the customers getting this week’s speed boost were former Knology customers. All are now free of usage caps that some used to endure under the systems’ former owners.

WOW! receives top customer approval ratings among cable companies in the United States, in part because it maintains a list of values drummed into employees that are lacking at other cable companies:

  1. Courage: Act on your beliefs with pure intention in spite of your fears.
  2. Respect: Treat others as you wish to be treated.
  3. Integrity: Choose to do what’s right.
  4. Accountability: Own your part of any situation and work towards a solution.
  5. Servanthood: Embrace the attitude and honor of serving others rather than being served.

Most customers can upgrade from the company’s old top-tier of 50/5Mbps to 110/5Mbps for about $13 extra a month.

Shakedown Sharpton: Buy Quid Pro Quo Minority Support for Your Big Telecom Merger Deal

Phillip Dampier January 12, 2015 Astroturf, AT&T, Comcast/Xfinity, Competition, Consumer News, Net Neutrality, Public Policy & Gov't, Time Warner Cable Comments Off on Shakedown Sharpton: Buy Quid Pro Quo Minority Support for Your Big Telecom Merger Deal

shakedown alLooking for civil rights groups to support your multi-billion dollar telecom merger and keep minority groups off your back?

You couldn’t do better than cutting a check to Rev. Al Sharpton, whose National Action Network (NAN) will generate form letters praising your killer deal before regulators or help garner support in Congress for more deregulation and less Net Neutrality. All it takes is a few donations and consulting fees, according to a special report published by the New York Post.

“Al Sharpton has enriched himself and NAN for years by threatening companies with bad publicity if they didn’t come to terms with him. Put simply, Sharpton specializes in shakedowns,” Ken Boehm, chairman of the National Legal & Policy Center told the Post.

“Once Sharpton’s on board, he plays the race card all the way through,” said a source who has worked with the Harlem preacher. “He just keeps asking for more and more money.”

Sharpton’s 60th birthday party bash last October at Manhattan’s Four Seasons restaurant departed from the usual friends and family oriented affair most of us would expect, as envelopes arrived from some of America’s largest corporations, including AT&T and Verizon, containing at least $1 million in donations for Sharpton’s civil rights group.

Coincidentally, that same month Sharpton co-signed a letter sent to the FCC urging the regulator to approve AT&T’s deal to buy DirecTV.

“We believe the evidence and the company’s record, as well as future impact and commitments post-merger, provide a clear and compelling basis for the FCC to determine that this merger is in the public’s best interest,” the letter said. “If approved, the combined AT&T-DirecTV will have greater incentive to deploy a state of the art Internet service and give millions of Americans a new way to access the Internet’s economic, social, and civic benefits.”

If approved, the deal would also eliminate one of AT&T’s chief competitors for pay television customers, making DirecTV part of the AT&T family.

Money-Stuffed-Into-PocketWhile the money keeps rolling in, Sharpton has left taxpayers footing his bills. Sharpton himself, his nonprofit NAN, and two for-profit firms controlled by him have racked up $4.7 million in outstanding debt and tax obligations according to federal and New York State records. He owes New York taxpayers $806,875 and after not bothering to pay his personal income taxes in full, he owes $2.6 million in federal liens. Sharpton’s NAN still owes more than $800,000 to the federal government and his two for-profit ventures separately owe New Yorkers nearly $450,000.

Raising money to repay debts appears to be a major priority for Sharpton these days, and companies like Comcast covet his support of their corporate agendas.

Shortly after Comcast announced its intention to acquire NBC-Universal in late 2009, Comcast’s chief executive, Brian L. Roberts, and the head of the company’s lobbying effort, David L. Cohen, met with Sharpton and other representatives of minority groups to talk about their bid. Comcast recognized that support from minority groups would be crucial to answering the inevitable charge that giant media mergers have a tendency to reduce diversity in programming, particularly from and for minorities.

Comcast turned on its money spigot, donating at least $140,000 to Sharpton’s National Action Network. In turn, Sharpton took a sudden interest in the merger, penning letters of strong support to the FCC. Between 2008 and 2010, Comcast’s corporate foundation donated more than $3 million to 39 minority groups that wrote letters to federal regulators in support of the NBC deal. Comcast and NBC Universal also worked out an agreement with advocacy groups guaranteeing increased “minority participation in news and public affairs programming”—so long as the deal went through.

Comcast supporter turned Comcast-owned MSNBC host.

Sharpton: Comcast supporter turned Comcast-owned MSNBC host.

Few expected that Sharpton himself would be a direct beneficiary of Comcast’s gratitude after the merger was approved. Sharpton was suddenly hired (for an undisclosed amount) as host of his own MSNBC weeknight show, still on the network today.

The New York Times noticed.

“Rarely, if ever, has a cable news channel employed a host who has previously campaigned for the business goals of the channel’s parent company,” the newspaper wrote.

Since the cable company began cutting checks to the NAN, Sharpton has towed the line on Comcast’s public policy agenda.

Last July, Sharpton’s group joined several other civil rights groups (most, if not all financially supported by Comcast) complaining that enforcing Net Neutrality would “harm communities of color.”

“The groups wrote to the FCC to tell them that ‘we do not believe that the door to Title II should be opened,'” said Lee Fang in a piece that was quickly censored by a Comcast-owned news outlet. “Simply put, these groups, many of which claim to carry the mantle of Martin Luther King Jr., are saying that Comcast and Verizon should be able to create Internet slow lanes and fast lanes, and such a change would magically improve the lives of non-white Americans.”

“Just as Martin Luther King Jr.’s children have embarrassingly descended into fighting bitterly over what’s left of his estate, the civil rights groups formed to advance Dr. King’s legacy seem willing to sell out their own members for a buck,” Fang concluded.

Comcast Announces 2015 Rate Hikes – Broadcast TV Surcharge More Than Doubles; New Regional Sports Fee

Phillip Dampier January 6, 2015 Comcast/Xfinity, Competition, Consumer News 25 Comments

comcast highwayComcast Internet-only customers looking for speeds up to 100Mbps will pay Comcast an unprecedented $88.95 a month for a package containing the company’s Blast! broadband service with a rented cable modem.

The company has begun informing subscribers of the first of its 2015 rate increases that took effect in some areas on Jan. 1.

“We have worked very hard to hold down price adjustments, and there are no price changes for our Limited Basic ($16.10), Digital Preferred ($85.90) or Internet Essentials ($9.95) services,” said Bob Grove, Comcast’s vice president of public relations. “While we continue making investments in our network and technology to give customers more for their money, including more video across platforms, better experiences like X1 and faster Internet service, we periodically need to adjust prices due to increases we incur in programming, business costs and new technology. On average, nationally, the customer bill will increase by 3.4 percent.”

Some will pay more than others. Here is a sample:

  • Customers with DVR service face a $2 rate hike for the monthly DVR service charge, which now stands at $10 a month;
  • Digital Premier, which includes an assortment of premium movie channels, is rising from $131.75 to $140.35;
  • The hourly service charge for service calls is increasing from $33.80 to $35.80;
  • Each extra cable outlet in your home will cost a one time service fee of $33.20, up from $32.75;
  • Any pre-existing outlet in your home will now be charged a one time activation fee of $22.95, up from $22.05;
  • Service upgrades that require an in-home visit will be charged $28.45, an increase from $26.30;
  • The in-home wiring service protection plan that covers you in case of an inside cable wiring or service deterioration problem will see a price increase of $1 to $4.95 a month. Customers without the plan will now pay $35.80 an hour for service calls.

Cable television customers face an increase of more than 100% for the company’s Broadcast TV surcharge introduced in 2013. In most areas, the fee is rising from $1.50 per month to $3.25. A previously announced $2 increase in modem rental charges will raise the cost of using Comcast-supplied equipment including Comcast’s Gateway to $10 a month.

Comcast is also introducing a new compulsory regional sports network surcharge of $1 a month for all XFINITY TV packages starting with Digital Starter and higher tiers and XFINITY 450 Latino.

Customers with analog-only televisions using a DTA converter box to handle digital cable television channels on these older sets face an even more dramatic price hike. Customers that used to pay as little as $0.50 for Digital Adapter Additional Outlet Service will now pay $2.99 a month.

Premium channels such as HBO have seen price reductions, possibly in response to declining subscriber numbers. HBO drops to $15 a month and all other premiums decrease to $12 a month.

Comcast customers looking for the biggest bang for their buck should consider bundled service packages which discount Internet, television, and telephone service. Current customers should also consider letting Comcast know they are shopping the competition for a better deal. Ask them to lower your rates if they want you to stay.

Frontier Faces Lawsuit in West Virginia Alleging False Advertising, Undisclosed DSL Speed Throttling

The slow lane

The slow lane

Frontier Communications customers in West Virginia are part of a filed class-action lawsuit alleging the phone company has violated the state’s Consumer Credit and Protection Act for failing to deliver the high-speed Internet service it promises.

The lawsuit, filed in Lincoln County Circuit Court, claims Frontier is advertising fast Internet speeds up to 12Mbps, but often delivers far less than that, especially in rural areas where the company is accused of throttling broadband speeds to less than 1Mbps. The suit also alleges Frontier’s broadband service is highly unreliable.

“The Internet service provided by Frontier does not come anywhere close to the speeds advertised,” wrote Benjamin Sheridan, the Hurricane lawyer filing the lawsuit on behalf of three Frontier customers. The attorney is seeking to have the case designated a class action lawsuit that would cover Frontier customers across the state.

“Although we cannot guarantee Internet speeds due to numerous factors, such as traffic on the Internet and the capabilities of a customer’s computer, Frontier tested each plaintiff’s line and found that in all cases the service met or exceeded the ‘up to’ broadband speeds to which they subscribed,” Frontier spokesperson Dan Page told the Charleston Gazette. “Nonetheless, the plaintiffs filed their case in Lincoln County, where none of them lives. If necessary, we are prepared to defend ourselves in court and bring the facts to light.”

Frontier’s general manager in West Virginia, Dana Waldo, may have helped the plaintiffs when he seemed to admit Frontier was purposely throttling the Internet speeds of its customers, a move Sheridan claims saves Frontier “a fortune” in connectivity costs with wholesale broadband providers like Sprint and AT&T.

Sheridan

Sheridan

“If as you suggest, we ‘opened up the throttle’ for every served customer, it could create congestion problems resulting in degradation of speed for all customers,” according to Waldo as part of an email exchange with one of the class members cited in the lawsuit.

The lawsuit also cites a state report issued over the summer that found just 12 percent of Frontier customers receive Internet speeds that actually qualify as “broadband” under federal and state standards. Frontier’s speed ranking is the slowest of any provider in the state. That is especially significant because Frontier is the largest ISP in West Virginia, and is often the only choice rural residents have for broadband service.

Frontier dismissed the state’s report claiming it was based on voluntary speed tests performed by disgruntled customers.

“As we’ve said before, the speed tests are the result of self-selected, self-reported samples,” Page said. “People who take speed tests tend to be those with speed problems or low speeds.”

“Even if that were true, it doesn’t account for Frontier’s poor performance,” said Frontier customer William Henley. “If every person that ran a speed test in West Virginia was annoyed with their provider, Frontier still came in last place.”

Frontier’s competitors scored better:

  • lincoln countyComcast: 88% of customers met or exceeded state and federal standards;
  • Suddenlink Communications: 80%
  • Time Warner Cable: 77%
  • Shentel: 71%
  • Armstrong Cable: 67%
  • LUMOS Networks: 44%

“…Frontier’s practice of overcharging and failing to provide the high-speed, broadband-level of service it advertises has created high profits for Frontier but left Internet users in the digital Dark Age,” Sheridan wrote. “As a result, students are prevented from being able to do their homework, and rural consumers are unable to utilize the Internet in a way that gives them equal footing with those in an urban environment.”

Sheridan also accused Frontier of delivering its fastest speeds only in areas where it faces competition. Where there is none, Frontier can afford to go slow.

But slow speed is not the only issue. One plaintiff — April Morgan in Marion County — says she has to reset her modem up to 10 times a day to stay connected to the Internet. Her modem has been replaced several times by Frontier, but that has done little to solve her problem.

Frontier customers who check the company’s terms of service agreement may question whether Sheridan can get very far suing the company. A clause in the contract states customers must settle disputes only through binding arbitration or small claims court. Individual lawsuits, jury trials, and class-action cases are prohibited.

Sheridan points out customers have to go online to read the agreement – it is not provided to customers signing up for Internet service. A contract that forces customers to agree to its terms without getting informed consent may turn out not very binding under West Virginia law.

Lincoln County Judge Jay Hoke, assigned to hear the case, will likely face that matter in pre-trial motions.

West Virginia residents interested in the class action case can register here for updates.

J.D. Power & Associates Tie Vote! Hemorrhagic Fever vs. Comcast vs. Time Warner Cable

Phillip Dampier October 13, 2014 AT&T, CenturyLink, Charter, Comcast/Xfinity, Cox, DirecTV, Dish Network, Editorial & Site News, Frontier, Time Warner Cable, Verizon, WOW! Comments Off on J.D. Power & Associates Tie Vote! Hemorrhagic Fever vs. Comcast vs. Time Warner Cable

jd powerLove can be a fickle thing.

Take Comcast’s affair with J.D. Power & Associates, for example. In Comcast’s filings with regulators, it is very proud that J.D. Power cited Comcast for the most improvement of any cable operator scored by the survey firm. Comcast touted the fact it had managed to increase its TV satisfaction score by a whopping 92 points and Internet satisfaction was up a respectable 77 points. (Comcast didn’t mention the fact J.D. Power rates companies on a 1,000 point scale or that it took the cable company four years to eke out those improvements.)

Last month, J.D. Power issued its latest ranking of telecommunications companies and… well, the love is gone.

If customer alienation was an Olympic event, J.D. Power awarded tie gold medals to both Comcast and Time Warner Cable for their Kafkaesque race to the bottom.

The survey of customer satisfaction largely found only dissatisfaction everywhere in the country J.D. Power looked. While Comcast likes to cite its “customer-oopsies-gone-viral” blunders as “isolated incidents,” J.D. Power finds them epidemic nationwide.

skunkThe highest rating across television and broadband categories achieved by either cable company was ‘Meh.’ J.D. Power diplomatically scored both cable companies on a scale that started with “among the best” as simply “the rest.” Customers in the west were the most charitable, those in the south and eastern U.S. indicated they were worked to their last nerve.

“The ability to provide a high-quality experience with all wireline services is paramount as performance and reliability is the most critical driver of overall satisfaction,” said Kirk Parsons, senior director of telecommunications, in a statement.

Having competition available from a high-scoring provider also demonstrates what is possible when a company actually tries to care about customer service. In the same regions Comcast fared about as popular as hemorrhagic fever, WOW! Cable and Verizon FiOS easily took top honors. Even AT&T U-verse scored far higher than either cable company, primarily because AT&T offers very aggressive promotional packages that include a lot for a comparatively low price.

Other cable and smaller phone companies didn’t do particularly well either. Frontier and CenturyLink both earned dismal scores and Charter Cable only managed modest improvement. The two satellite television companies did fine in customer satisfaction for television service, but it was the two biggest phone companies that managed the best scores for Internet service. Among cable operators, only independents like WOW! (and to a lesser extent Cox) did well in the survey.

If J.D. Power is the arbiter of good service Comcast seems to claim it to be, the ratings company just sent a very clear message that when it comes to merging Comcast and Time Warner Cable, anything multiplied by zero is still zero.

J.D. Power ranking (Image courtesy: Reviewed.com)

J.D. Power ranking (Image courtesy: Reviewed.com)

Midwestern Cities Worry About Comcast’s Replacement: Already Debt-Laden GreatLand Connections

Phillip Dampier October 1, 2014 Charter, Comcast/Xfinity, Competition, Consumer News, GreatLand Connections, Public Policy & Gov't, Time Warner Cable Comments Off on Midwestern Cities Worry About Comcast’s Replacement: Already Debt-Laden GreatLand Connections
The merger of Comcast and Time Warner Cable includes castoffs that will be served by a completely unknown spinoff - GreatLand Communications, that nobody can speak with and does not have a website.

The merger of Comcast and Time Warner Cable includes castoffs that will be served by a completely unknown spinoff – GreatLand Connections, that nobody can speak with and does not have a website.

At least 2.5 million Comcast customers in cities like Detroit and Minneapolis could soon find their service switched to a new provider that doesn’t have a website, doesn’t answer questions, and won’t give detailed information to municipal officials about its plans, pricing, or service obligations.

GreatLand Connections is the dumping ground for communities Comcast no longer wants to serve, including cities in Alabama, Indiana, Kentucky, Michigan, Minnesota, Tennessee and Wisconsin.

Formerly known as “SpinCo” for the benefit of Wall Street investment banks advising Comcast, the new cable company has been created primarily to help Comcast convince regulators to approve its merger with Time Warner Cable. Comcast believes supersizing itself with Time Warner Cable will win a pass with the FCC by self-limiting its potential television market share. The deal is also structured to dump a large amount of debt on the brand new cable company, allowing Comcast to avoid a significant tax bill.

GreatLand will, for all intents and purposes, be Charter Cable under a different name. Charter will act as the “management company,” which means it will be in charge of most consumer-facing operations.

Beyond that, almost nothing is known about the new cable company, except that it will open its doors laden with $7.8 billion in debt, according to a securities filing. That is equal to five times EBITDA, or earnings before interest, taxes, depreciation and amortization. In comparison, Comcast is 1.99 times EBITDA and Time Warner Cable is 3.07 times EBITDA, making the new cable company highly leveraged above industry averages. Charter Cable, which declared bankruptcy in 2009, is loaded down it debt itself, as it continues to acquire other cable operators.

Finances for the new company appear to be “less-than-middling,” according to MoffettNathanson analyst Craig Moffett, in a note to investors.

Because cable operators face little serious competition, the chances of any significant cable company liquidating in bankruptcy is close to zero, but a heavily indebted company may be very conservative about spending money on employees and operations. It may also leverage its market position and raise prices to demonstrate it can repay those obligations.

exitWith many customers having only one choice for High Speed Internet access above 15-25Mbps — the cable company — the arrival of GreatLand concerns many municipalities facing deadlines to approve a transfer of franchise agreements from Comcast to the new entity.

Jodie Miller, executive director of the Northern Dakota County Cable Communications Commission in suburban Minneapolis said it was impossible to find anyone to talk to at GreatLand. The commission needs to sign off on franchise transfers by mid-December, but nobody can reach GreatLand and the company has no track record of service anywhere in the country.

“We’re not even saying it’s unqualified,” she told Businessweek. “We’re saying we don’t really have information.”

Coon Rapids, Minn. has put franchise renewal negotiations on hold. Michael Bradley, a municipal cable TV attorney and the city’s longtime cable counsel said the deadline has been extended from Oct. 15 to Dec. 15.

“It’s a challenge,” he said. “No one knows who we can deal with locally. Nothing is certain yet and discussions are on hold.”

“We don’t have the answers we need,” added Ron Styka, an elected trustee with responsibility for cable-service oversight in Meridian Township, Michigan, a town served by Comcast about 80 miles west of Detroit.

“Answers have been inadequate at best and mostly not forthcoming,” echoed David Osberg, city administrator of Eagan, Minn. in a filing to the Federal Communications Commission.”It’s not clear whether GreatLand will be financially qualified.”

Eagan has had problems with Comcast in the past, and does not want new ones with GreatLand, especially with broadband service, which is vital to an effort to attract technology jobs to the community.

UN: U.S. Broadband Ranking Slips Again; Now 19th Place in Penetration, 24th in Wired Connections

Phillip Dampier September 23, 2014 Broadband Speed, Canada, Competition, Consumer News, Editorial & Site News, Public Policy & Gov't, Wireless Broadband Comments Off on UN: U.S. Broadband Ranking Slips Again; Now 19th Place in Penetration, 24th in Wired Connections

All of the top-10 broadband rankings for accessibility, affordability, speed, and subscription rates have been awarded to countries in Europe and Asia, while the United States continues to fall further behind.

This week, the UN Broadband Commission issued its annual report on broadband and had little to say about developments in North America, where providers have maintained the status quo of delaying upgrades, raising prices, and limiting usage. As a result, other countries are rapidly outpacing North America, preparing the infrastructure to support the 21st century digital economy while officials in the U.S.A. and Canada cater primarily to the interests of large incumbent cable and telephone companies.

The United States has fallen from 20th to 24th place in wired broadband subscriptions, per capita. Virtually every country in western Europe now beats the United States, as does Hong Kong, Belarus, and New Zealand. Canada scored better, taking 14th place.

fixed broadband penetration 2013

Only managing a meager 19th place, only 84.2% of Americans are online. Iceland has 96.5% of their population on the Internet, closely followed by the other northern European nations of Norway, Sweden and Denmark. Also scoring superior to the United States: Andorra, Bahrain, Qatar, and the United Arab Emirates. Canada did better than its southern neighbor as well, coming in at number 16.

percentage using the internet

With big profits to be made in wireless, large wireless phone companies like Verizon Wireless and AT&T helped the U.S. achieve its best rating — 10th place in wireless. But the countries that exceeded the United States did much better (Canada was not rated this year.)

With the arguable exception of wireless, the United States is no longer a world leader in broadband and continues a slow but steady decline in rankings as other countries leapfrog over the U.S.

At least 140 countries now have a National Broadband Plan in place, most maintaining stronger oversight over telecommunications infrastructure than the largely unregulated U.S. broadband marketplace. After reviewing broadband performance across most UN member states, the Broadband Commission for Digital Development recognized several traits common in countries where broadband has been particularly successful:

Competition is essential to promote enhanced broadband. A monopoly or duopoly (usually a telephone company and cable or wireless operator) is not enough to promote healthy broadband advancements. At least three, near-equal competitors are required to achieve the best upgrades and price competition. The presence of smaller competitors or those charging considerably different pricing had little effect on competition.

Countries with the best speeds have national policies promoting the installation of fiber optic technology, at least in multi-dwelling units and new developments. Although the cost of fiber and its installation can amount to as much as 80% of a broadband expansion project, many countries have been successful compelling competing providers to share a single fiber optic network (and its costs) to make the investment more affordable. In terms of ultra-high-speed broadband, there are still not many consumer apps and services that need Gigabit speeds, but such services are on their way. Experience shows that technology typically moves faster than most people anticipate – so countries and operators need to start planning now for the imminent broadband world.

technology cost

A coherent regulatory foundation that emphasizes competition over regulation was the most effective policy. But regulatory frameworks must guarantee a level playing field among competitors and strong oversight to make sure competitors play fair. Regulation is not keeping pace with the changes in the market – Internet players offering equivalent voice and messaging services are, by and large, subject to relatively limited requirements (including consumer protection, privacy, interoperability, security, emergency calls, lawful intercept of customer data, universal service). Asymmetric regulation has resulted in an uneven competitive landscape for services. Governments and policy-makers need to review and update their regulatory frameworks to take into account evolving models of regulation.

Telecommunication and broadband access providers need to explore business arrangements with Internet content providers that will accelerate global investment in broadband infrastructure, to the mutual benefit of all, including end-consumers. Internet companies and Internet content providers need to contribute to investment in broadband infrastructure by debating interconnection issues and agreeing fees/revenue shares with other operators and broadband providers.

That last issue is now being hotly debated in the United States, where providers are seeking compensation from streaming video providers like Netflix, which now account for a substantial amount of Internet traffic.

Kentucky Wakes Up: AT&T Dereg Bills Will Not Bring Better Broadband, Will Make Rural Service Worse

luckykyQuestion: How will ripping out landline infrastructure in Kentucky help improve broadband service for rural areas?

Answer: It won’t.

This is not for a lack of trying though. AT&T has returned to the Kentucky state legislature year after year with a company-written bill loaded with more ornaments than a Christmas tree. In the guise of “modernizing” telecom regulation, AT&T wants to abolish most of it, replaced by a laissez-faire marketplace for telecommunications services not seen in the United States since the 1910s. AT&T claims robust competition will do a better job of keeping providers in check than a century of oversight by state officials. But customers in rural Kentucky have a better chance of sighting Bigfoot than finding a competitive alternative to AT&T’s telephone and DSL service. AT&T retains a monopoly in broadband across much of the state where cable operators like Time Warner don’t tread.

This year, Senate Bill 99, dubbed “The AT&T Bill” received overwhelming support from the Kentucky Senate as well as in the House Economic Development Committee. AT&T made sure the state’s most prominent politicians were well-compensated with generous campaign contributions, which helped move the bill along.

Since 2011, AT&T’s political-action committee has given about $55,000 to state election campaigns in Kentucky, including $5,000 to the Senate Republican majority’s chief fundraising committee and $5,000 more to the House Democratic majority’s chief fundraising committee. The company spent $108,846 last year on its 22 Frankfort lobbyists.

That generosity no doubt helped Republican Floor Leader Jeff Hoover find his way to AT&T’s talking point that only by “modernizing” Kentucky’s telecom laws would the state receive much-needed broadband improvements.

Hoover

Hoover

Hoover is upset that the state’s House Democratic leadership stopped AT&T’s bill dead in its tracks, despite bipartisan begging primarily from AT&T’s check-cashers that the bill see a vote. Speaker Greg Stumbo, whose rural Eastern Kentucky district would have seen AT&T’s landline and DSL service largely wiped out by AT&T’s original proposal, would hear none of it.

He has been to AT&T’s Deregulation Rodeo before.

“When I served as attorney general, I dealt with deregulation firsthand to protect consumers as much as possible,” he wrote in a recent editorial. “In most cases, deregulation led to worse service and less opportunity to correct the problems customers invariably faced. It is now our job as House leaders to continue defending Kentucky’s consumers.”

Stumbo, like many across Kentucky, have come to realize that AT&T’s custom-written legislation gives the company a guarantee it can disconnect rural landline service en masse, but does not guarantee better broadband as a result.

“In fact, there is nothing in the legislation guaranteeing better landline, cell or Internet service,” Stumbo noted.

Hoover declared that by not doing AT&T’s bidding, Kentucky was at risk of further falling behind.

“This decision by Stumbo and House Democrat leadership, like many others, has unfortunately had a real effect on the lives of Kentuckians as we will go, at minimum, another year before these private businesses can focus on increasing broadband speed throughout the commonwealth,” he wrote. “It is another year in which we risk falling further behind our neighboring states and others in the competitive world of economic development.”

Stumbo

Stumbo

Stumbo responded the Republicans seemed to have a narrow vision of what represents progress. Hoover and his caucus voted against the House budget that included $100 million for a broadband improvement initiative spearheaded by Gov. Steve Beshear, Rep. Hal Rogers, and private interests.

By relying entirely on a deregulated AT&T, rural Kentucky residents may lose both landline and DSL service and be forced to wireless alternatives that come at a high price.

“There are citizens, many of whom are elderly or on fixed income, who depend on their landline or cannot afford more expensive options; these are the people I am fighting for,” said Stumbo. “I do not want to get a call from a family member who lost a loved one because that person could not reach a first responder in time.”

State residents watching the debate have increasingly noticed discrepancies between what AT&T wants and what it is promising Kentucky.

“No one has ever been able to satisfactorily explain to me how allowing phone companies to abandon landline service will help expand broadband Internet, especially since DSL service requires phone lines,” said H.B. Elkins, Public Information Officer at KYTC District 10.

Matt Simpson recognizes that Senate Bill 99 and other similar measures will not change the economic realities of AT&T’s for-profit business.

“Without regulation, the for-profit companies like AT&T are going to invest in the most profitable areas,” he wrote. “If they thought they could make a huge profit providing broadband in rural areas, they would already be doing it. Deregulation is not going to change that profit calculation. They will still view rural broadband as unprofitable, and they still won’t do it. The bill was a total giveaway to the industry, with no offsetting benefit to the consumers.”

Michael Yancy summed up his views more colorfully.

“The ‘AT&T bill should be classified as a sheep bill. It was all about pulling the wool over the eyes of the public,” Yancy said. “Anyone who thinks the people of Kentucky will benefit from more of the same, needs to make inquiries into moving the Brooklyn Bridge to the Ohio River.”

Kentucky Educational Television aired a debate between AT&T and the Kentucky Resources Council on the issue of telephone deregulation in 2013. The same issues were back this year in AT&T’s latest failed attempt to win statewide deregulation and permission to switch landline customers in rural Kentucky to less reliable wireless service. In this clip AT&T argues it should be able to shift investment away from landline service towards wireless because wireless is the more popular technology, but not everyone gets good coverage in Kentucky. (Feb. 19 2013) (3:00)

In this second clip, AT&T claims customers who want to keep landline service can, but Kentucky Resources Council president Tom Fitzgerald reads the bill and finds AT&T’s claims just don’t hold up under scrutiny. The carrier of last resort obligation which guarantees quality landline phone service to all who want it is gone if AT&T’s bill passes. Customers can be forced to use wireless service instead. (Feb. 19 2013) (4:33)

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