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New Zealand Getting 200/200Mbps Uncapped Fiber Broadband

Snap-Logo-2-300x300New Zealanders want faster broadband and they want it without a usage cap, and Snap is ready to offer both.

Snap’s nationwide 200/200Mbps Ultra-Fast Broadband commenced this week providing the fastest broadband on offer throughout New Zealand, priced at $111.50 a month with an unlimited use add-on available for an extra $8 a month. To date, the service had only been available in Auckland.

Kiwis can sign up for Snap on the Chorus network for the fastest 200/200Mbps speeds. Those served by Enable or UltraFast Fibre will see upload speeds reduced to 20Mbps for now, but will also be compensated with a lower monthly price: $87.71.

A wireless gateway to support the faster speeds will be provided at no extra cost to customers signing up for 200Mbps service.

no limitsSnap’s new service comes as a result of New Zealand’s deployment of fiber networks and an end to usage caps, consumption billing, and/or bandwidth throttling. Snap has been well received in New Zealand because it guarantees no traffic shaping, traffic management schemes, or mandatory usage caps. This comes at a time when North American providers are trying to force customers into usage-capped broadband plans and wireless carriers insist on using traffic shaping and caps.

“There is no faster commercially available service across the whole country today,” said James Koers, general manager, Snap Retail. “We’ve built our own network to ensure customers receive the fastest, most reliable service possible. We don’t cache or proxy or shape traffic in any way, giving customers peace of mind that they’re getting the service they expected and paid for.”

Koers adds there is a clear demand for fiber optic broadband across the country.

“Today, two out of every three of our sign-ups are for a fibre service which shows New Zealanders’ appetite is increasing for UltraFast Broadband as it becomes available,” said Koers. “200Mbps is just the beginning though as we’re now trialling Chorus’ new 1Gbps residential service.”

PC Magazine has rated Snap the fastest broadband provider in the country.

Average Netflix User Now Uses 45GB a Month, Will Exponentially Increase When 4K Video Arrives

Phillip Dampier September 29, 2014 Consumer News, Internet Overcharging, Online Video 1 Comment

The average Netflix subscriber now watches 93 minutes of online video a day just from Netflix, and that adds up to 45GB of usage on average a month.

The Diffusion Group released that estimate in a new 35-page report (priced at $2,495) based on streaming data released by Netflix, and it shows a 350 percent increase in viewing over the last ten quarters, adding up to more than seven billion streaming hours in the last quarter alone.

Consumers with usage-limited broadband accounts will find online video viewing increasingly eating away at viewing allowances, but when 4K HD video arrives in the not too distant future, usage caps of 300-500GB a month will seem paltry. That new video format consumes up to 7GB per hour, and if current trends stay true, the average Netflix viewer streaming at the highest video quality could find their monthly Netflix traffic consumption rising to more than 300GB a month.

netflix-report

 

Fiber to the Press Release: Atlantic Broadband Announces 1Gbps in Miami… (For 40 Homes)

atlanticMore people will read this story than Atlantic Broadband has current customers for its 1Gbps broadband project in Miami.

“Atlantic Broadband is proud to be the first company to deliver 1 Gigabit Internet service to its customers here in the Miami Beach area,” said David Keefe, Atlantic Broadband’s senior vice president and general manager of the South Florida region. “While other companies are talking about what they will be doing, Atlantic Broadband moved forward and started offering this service in one of its communities. We look forward to extending access to our Gigabit Internet service to other properties and communities within our Miami footprint.”

Although Mr. Keefe isn’t being modest, his company’s gigabit broadband coverage area certainly is.

At present, the company serves just 40 properties with the super high-speed broadband service in high-income Indian Creek Village — the 8th richest community in the United States.

The tiny village of Indian Creek is made up of 40 properties and is the 8th richest community in the U.S.A.

The tiny village of Indian Creek, in the Miami-Dade area, is made up of 40 properties and is the 8th richest community in the U.S.A.

Designed to appeal to residents who can spare no expense, the Atlantic Broadband package also includes more than 350 TV channels powered by TiVo, integrated access to Netflix, and unlimited phone service for up to four lines.

An Atlantic Broadband spokesperson wouldn’t reveal the price of the package, and admitted customers cannot choose standalone broadband-only service.

“The needs of Indian Creek Village were unique so custom service packages were created that include all of Atlantic Broadband’s TV services, Gigabit Internet and four phone lines,” a spokeswoman told Multichannel News. “Currently, there is not a published a standalone price for Gigabit Internet.”

Residents in the wealthy enclave include Victoria’s Secret model Adriana Lima, Spanish singer Julio Iglesias, his son Enrique Iglesias, Robert Diener, co-founder of Hotels.com, Edward Lampert, hedge fund billionaire and owner of what is left of Kmart and Sears, Don Shula, retired football coach, Charles Bartlett Johnson, mutual fund billionaire, billionaire investor Carl Icahn and former Philadelphia Eagles owner and billionaire art collector Norman Braman.

Other famous residents both past and present have included Beyoncé and Jay-Z, pro golfer Raymond Floyd, coach Rick Pitino, U.S. Senator George Smathers, Sheik Mohammed al Fassi, television host Don Francisco, co-founder of Calvin Klein Barry Schwartz, radio magnate Raul Alarcon, coal and oil executive, heiress and philanthropist Suzie Linden, Arthur I. Appleton, President of Appleton Electric Company and founder of the Appleton Museum of Art and Bridlewood Farm, and his wife Martha O’Driscoll a former Hollywood actress.

Atlantic Broadband has not ripped out classic cable infrastructure for its less-well-to-do customers outside of the village in the Miami-Dade area and relies on RF over Glass technology for its network extensions. That allows the company to keep its legacy equipment in place while giving some residents access to fiber and others traditional coaxial cable.

Atlantic serves an island of customers in the Miami Beach area, but most of Miami gets its cable service from Comcast. Competitor AT&T has promised fiber upgrades and gigabit speeds for its own customers in the Hialeah, Hollywood, Homestead, Opa-Locka, and Pompano Beach areas, but no time frame has been announced for the upgrade.

Atlantic Broadband will have one advantage over AT&T U-verse. It does not have usage caps.

Atlantic Broadband serves around 230,000 residential and business subs in western Pennsylvania, Miami Beach, Maryland/Delaware, and Aiken, S.C. It is owned by Cogeco Cable of Canada.

Cable Is #1 in Profits: 41% Cash Flow Margin Tops TV, Movies, Music, and Publishing Industries

Phillip Dampier September 17, 2014 Competition, Consumer News, Internet Overcharging 2 Comments

eyCable operators leveraged their near-monopoly on high-speed broadband and commercial business services to lead the entertainment and publishing industry in profitability, according to a report from consultant EY (formerly Ernst & Young.)

Cable companies now earn EBITDA (cash flow) margins of 41%, thanks primarily to their broadband divisions. Cable companies have managed to raise prices for Internet access, charge new fees to lease equipment, and monetize broadband usage with usage caps and usage-based billing while their costs to offer broadband service continue to decline rapidly.

“We are seeing that digital is very much driving profits now, instead of disrupting it,” said EY’s Global Media & Entertainment Leader John Nendick. “Companies are figuring out how to monetize the migration of consumers to a variety of digital platforms, and this insatiable demand for content is fueling growth throughout the industry.”

Just a few years ago, cable operators fretted that cord cutting of cable television packages and increased programming costs could take a major bite out of their profitability. But as telephone company broadband competition has waned, cable companies have been able to leverage their near-monopoly on high-speed broadband service with rate increases and usage-control measures that keep costs down and profits up. Customers have also been choosing higher-speed tiers with greater usage allowances at added costs, further increasing profits. The result is more revenue that more than compensates for the loss of profits from cable television.

According to EY, the cable industry will top everyone else in the 2014 survey of the sector. Cash flow margins for other related businesses: cable networks (37%), interactive media (36%), electronic games (29%), conglomerates (26%), satellite television (26%), publishing and information services (21%),  broadcast and network television (19%), film and television production (12%), and music (11%).

AT&T U-verse Customers Can Escape AT&T’s Usage Caps With DSL Extreme’s trueSTREAM

dsl extremeThere is a way out for AT&T U-verse customers stuck dealing with the company’s arbitrary 250GB monthly usage cap — sign up with U-verse reseller DSL Extreme for the same Internet access with no usage caps whatsoever.

Today, DSL Extreme announced the introduction of trueSTREAM in 21 states serviced by AT&T’s U-verse fiber to the neighborhood system. Much like Earthlink’s reseller agreement with Time Warner Cable, customers can transparently switch between the two providers and receive essentially the same service at a different price point.

The biggest selling point of trueSTREAM is that it has absolutely no usage limits.

DSL Extreme has signed a contract with AT&T to offer the service in states including California, Texas, Illinois, and Florida, among many others.

Customers don’t need to have a phone line to subscribe. They will need to lease a wireless gateway router ($6.50/mo) from DSL Extreme and the rate plans are similar to AT&T’s own U-verse broadband offerings:

  • truestreamValue ($17.95/mo) 768/384kbps
  • Plus ($22.95/mo) 1.5Mbps/384kbps
  • Pro ($27.95/mo) 3Mbps/512kbps
  • Elite ($32.95/mo) 6Mbps/768kbps
  • Max ($37.95/mo) 12/1Mbps
  • Max Plus ($42.95/mo) 18/1.5Mbps
  • Max Turbo ($52.95/mo) 24/3Mbps
  • Power ($62.95/mo) 45/6Mbps
  • Power Plus ($92.95/mo) 75/8Mbps

Professional installation is now free of charge and an optional one-year contract delivers other extras, such as a static IP address. A Supplier Surcharge Recovery fee of $2.88 per month applies. Customers can pre-qualify on the company’s website.

The coverage area of trueSTREAM will extend the company’s reach overnight to 30 million potential customer locations, growing to nearly 60 million by 2015.

FCC Chairman Complains About State of U.S. Broadband But Offers Few Meaningful Solutions

FCC chairman Thomas Wheeler doesn’t like what he sees when looks at the state of American broadband.

At a speech today given to the 1776 community in Washington, Wheeler complained about the lack of broadband competition in the United States.

“The underpinning of broadband policy today is that competition is the most effective tool for driving innovation, investment, and consumer and economic benefits,” Wheeler said. “Unfortunately, the reality we face today is that as bandwidth increases, competitive choice decreases.”

faster speed fewer competitors

“The lighter the blue, the fewer the options,” Wheeler said, gesturing towards his chart. “You get the point. The bar on the left reflects the availability of wired broadband using the FCC’s current broadband definition of 4Mbps. But let’s be clear, this is ‘yesterday’s broadband.’ Four megabits per second isn’t adequate when a single HD video delivered to home or classroom requires 5Mbps of capacity. This is why we have proposed updating the broadband speed required for universal service support to 10Mbps.”

But Wheeler added that even 10Mbps was insufficient as households increasingly add more connected devices — often six or more — to a single broadband connection.  When used concurrently, especially for online video, it is easy to consume all available bandwidth at lower broadband speeds.

Wheeler

Wheeler

Wheeler’s new informal benchmark is 25Mbps — “table stakes” in 21st century communications. About 80 percent of Americans can get 25Mbps today or better, but typically only from one provider. Wheeler wants even faster speeds than that, stating it is unacceptable that more than 40% of the country cannot get 100Mbps service. Wheeler seemed to fear that phone companies have largely given up on competing for faster broadband connections, handing a de facto monopoly to cable operators the government has left deregulated.

“It was the absence of competition that historically forced the imposition of strict government regulation in telecommunications,” Wheeler explained. “One of the consequences of such a regulated monopoly was the thwarting of the kind of innovation that competition stimulates. Today, we are buffeted by constant innovation precisely because of the policy decisions to promote competition made by the FCC and Justice Department since the 1970s and 1980s.”

Wheeler said competition between phone and cable companies used to keep broadband speeds and capacity rising.

“In order to meet the competitive threat of satellite services, cable TV companies upgraded their facilities,” Wheeler said. “When the Internet went mainstream, they found themselves in the enviable position of having greater network capacity than telephone companies. Confronted by such competition, the telcos upgraded to DSL, and in some places deployed all fiber, or fiber-and-copper networks. Cable companies further responded to this competition by improving their own broadband performance. All this investment was a very good thing. The simple lesson of history is that competition drives deployment and network innovation. That was true yesterday and it will be true tomorrow. Our challenge is to keep that competition alive and growing.”

But Wheeler admits the current state of broadband in the United States no longer reflects the fierce competition of a decade or more ago.

“Today, cable companies provide the overwhelming percentage of high-speed broadband connections in America,” Wheeler noted. “Industry observers believe cable’s advantage over DSL technologies will continue for the foreseeable future. The question with which we as Americans must wrestle is whether broadband will continue to be responsive to competitive forces in order to produce the advances that consumers and our economy increasingly demand. Looking across the broadband landscape, we can only conclude that, while competition has driven broadband deployment, it has not yet done so a way that necessarily provides competitive choices for most Americans.”

Wheeler recognized what most broadband customers have dealt with for years — a broadband duopoly for most Americans.

antimonopoly“Take a look at the chart again,” Wheeler said. “At the low end of throughput, 4Mbps and 10Mbps, the majority of Americans have a choice of only two providers. That is what economists call a “duopoly”, a marketplace that is typically characterized by less than vibrant competition. But even two “competitors” overstates the case. Counting the number of choices the consumer has on the day before their Internet service is installed does not measure their competitive alternatives the day after. Once consumers choose a broadband provider, they face high switching costs that include early termination fees, and equipment rental fees. And, if those disincentives to competition weren’t enough, the media is full of stories of consumers’ struggles to get ISPs to allow them to drop service.”

Wheeler emphasized that true competition would allow customers to change providers monthly, if a vibrant marketplace forced competitors to outdo one another. That market does not exist in American broadband today.

“At 25Mbps, there is simply no competitive choice for most Americans,” Wheeler added. “Stop and let that sink in…three-quarters of American homes have no competitive choice for the essential infrastructure for 21st century economics and democracy. Included in that is almost 20 percent who have no service at all. Things only get worse as you move to 50Mbps where 82 percent of consumers lack a choice. It’s important to understand the technical limitations of the twisted-pair copper plant on which telephone companies have relied for DSL connections. Traditional DSL is just not keeping up, and new DSL technologies, while helpful, are limited to short distances. Increasing copper’s capacity may help in clustered business parks and downtown buildings, but the signal’s rapid degradation over distance may limit the improvement’s practical applicability to change the overall competitive landscape.”

Wheeler finds little chance wireless providers will deliver any meaningful competition to wired broadband because of pricing levels and miserly data caps. Such statements are in direct conflict with a traditional industry talking point.

In a remarkable admission, Wheeler added that the only hope of competing with cable operators comes from a technology phone companies have become reluctant to deploy.

“In the end, at this moment, only fiber gives the local cable company a competitive run for its money,” Wheeler said. “Once fiber is in place, its beauty is that throughput increases are largely a matter of upgrading the electronics at both ends, something that costs much less than laying new connections.”

Wheeler also continued to recognize the urban-rural divide in broadband service and availability, but said little about how he planned to address it.

Wheeler’s answer to the broadband dilemma fell firmly in the camp of promoting competition and avoiding regulation, a policy that has been in place during the last two administrations with little success and more industry consolidation. Most of Wheeler’s specific commitments to protect and enhance competition apply to the wireless marketplace, not fixed wired broadband:

1. comcast highwayWhere competition exists, the Commission will protect it. Our effort opposing shrinking the number of nationwide wireless providers from four to three is an example. As applied to fixed networks, the Commission’s Order on tech transition experiments similarly starts with the belief that changes in network technology should not be a license to limit competition.

In short, don’t expect anymore efforts to combine T-Mobile and Sprint into a single entity. Wheeler only mentioned “nationwide wireless providers” which suggests it remains open season to acquire the dwindling number of smaller, regional carriers. Wheeler offers no meaningful benchmarks to protect consumers or prevent further consolidation in the cable and telephone business.

2. Where greater competition can exist, we will encourage it. Again, a good example comes from wireless broadband. The “reserve” spectrum in the Broadcast Incentive Auction will provide opportunities for wireless providers to gain access to important low-band spectrum that could enhance their ability to compete. Similarly, the entire Open Internet proceeding is about ensuring that the Internet remains free from barriers erected by last-mile providers. Third, where meaningful competition is not available, the Commission will work to create it. For instance, our efforts to expand the amount of unlicensed spectrum creates alternative competitive pathways. And we understand the petitions from two communities asking us to pre-empt state laws against citizen-driven broadband expansion to be in the same category, which is why we are looking at that question so closely.

Again, the specifics Wheeler offered pertain almost entirely to the wireless business. Spectrum auctions are designed to attract new competition, but the biggest buyers will almost certainly be the four current national carriers, particularly AT&T and Verizon Wireless. Although low-band spectrum will help Sprint and T-Mobile deliver better indoor service, it is unlikely to drive new market share for either. Wheeler offered no specifics on the issues of Net Neutrality or municipal broadband beyond acknowledging they are issues.

3. Incentivizing competition is a job for governments at every level. We must build on and expand the creative thinking that has gone into facilitating advanced broadband builds around the country. For example, Google Fiber’s “City Checklist” highlights the importance of timely and accurate information about and access to infrastructure, such as poles and conduit. Working together, we can implement policies at the federal, state, and local level that serve consumers by facilitating construction and encouraging competition in the broadband marketplace.

competitionMost of the policies Wheeler seeks to influence exist on the state and local level, where he has considerably less influence. Based on the overwhelming interest shown by cities clamoring to attract Google Fiber, the problems of access to utility poles and conduit are likely overstated. The bigger issue is the lack of interest by new providers to enter entrenched monopoly/duopoly markets where they face crushing capital investment costs and catcalls from incumbent providers demanding they be forced to serve every possible customer, not selectively choose individual neighborhoods to serve. Both incumbent cable and phone companies originally entered communities free from significant competition, often guaranteed a monopoly, making the burden of wired universal service more acceptable to investors. When new entrants are anticipated to capture only 14-40 percent competitive market share at best, it is much harder to convince lenders to support infrastructure and construction expenses. That is why new providers seek primarily to serve areas where there is demonstrated demand for the service.

4. Where competition cannot be expected to exist, we must shoulder the responsibility of promoting the deployment of broadband. One thing we already know is the fact that something works in New York City doesn’t mean it works in rural South Dakota. We cannot allow rural America to be behind the broadband curve. Our universal service efforts are focused on bringing better broadband to rural America by whomever steps up to the challenge – not the highest speeds all at once, but steadily to prevent the creation of a new digital divide.

Again, Wheeler offers few specifics. Current efforts by the FCC include the Connect America Fund, which is nearly entirely devoted to subsidizing rural telephone companies to build traditional DSL service into high-cost areas. Cable is rarely a competitor in these markets, but Wireless ISPs often are, and they are usually privately funded and consider government subsidized DSL expansion an unwelcome and unfair intrusion in their business.

“Since my first day as Chairman of the FCC my mantra has been consistent and concise: ‘Competition, Competition, Competition,'” said Wheeler. “As we have seen today, there is an inverse relationship between competition and the kind of broadband performance that consumers are increasingly demanding. This is not tolerable.”

Under Wheeler’s leadership, Comcast has filed a petition to assume control of Time Warner Cable, AT&T is seeking permission to buy DirecTV, Frontier Communications is acquiring the wired facilities of AT&T in Connecticut, and wireless consolidation continues. A forthcoming test of Wheeler’s willingness to back his rhetoric with action is whether he will support or reject these industry consolidating mergers and acquisitions. Wheeler’s FCC has also said little to nothing about the consumer-unfriendly practice of usage caps and usage-based billing — both growing among wired networks even as they upgrade to much-faster speeds and raise prices.

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

Bell-Aliant-FibreOP

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

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

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

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

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

Bell Canada Enterprises

Bell Canada Enterprises

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

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

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

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

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

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

Stop the Cap! Files Testimony in Opposition to Comcast-Time Warner Cable Merger With FCC

Stop the Cap! completed and today filed a formal submission with the Federal Communications Commission opposing the merger of Time Warner Cable and Comcast.

We joined tens of thousands of filers — mostly consumers — strongly opposed to the merger on the grounds it is not in the public interest.

Earlier today, Consumers Union filed its petition with more than 20,000 signatures of ordinary Americans across the United States who want nothing to do with Comcast.

Back here in New York, Comcast this afternoon filed a response with the Public Service Commission regarding our (and other) submissions opposed to the merger. We will be analyzing and rebutting their response straight away. Comcast went all-out name-dropping people and groups (many with direct, usually undisclosed financial ties to Comcast) to sell New York regulators the theory ‘the groups and people who matter’ are in favor of their merger while those opposed are mostly out-of-state rabble or unsubstantial individuals of few words.

“Given these many concrete benefits, and the lack of any harm to competition or consumers, it should come as no surprise that the overwhelming majority of the substantive comments (approximately 110 out of a total of about 140 substantive comments) filed in this proceeding support Commission approval of the transaction,” writes Comcast.

Comcast did not share their subjective standard of what constitutes “substantive” but a quick review of the groups cited in Comcast’s response show some substantive was involved – a check from Comcast either recently or in the past. Our view is that it doesn’t take more than a sentence to express extreme displeasure about Comcast taking over Time Warner Cable, and those views should matter just as much as a virtual Hallmark card from a group or politician that used a Comcast-provided “template” with a detachable check at the bottom.

Our favorite was Comcast’s highly defensive ‘hey New York PSC, it’s none of your business that Comcast is testing usage caps and you cannot use it against us':

The Writers Guild of America, West, Inc. (“WGAW”), Zephyr Teachout and Tim Wu, and Stop the Cap! argue that Comcast will extend data caps and usage-based pricing to New York to impose restraints on online content and drive up consumer costs.

This broadband-related claim is irrelevant to this proceeding and beyond the Commission’s jurisdiction. Indeed, the FCC expressly approved of usage-based billing in its 2010 Open Internet Order and is again examining the issue in the pending Open Internet rulemaking.

In other words, whether data caps are appropriate is a matter of federal regulatory concern, not one that relates to this proceeding or that is even transaction specific (since nothing precludes TWC from adopting caps at any time, as it has in the past).

So regardless of whether data caps are in the public interest or not, New York should not be allowed to weigh in because former FCC chairman Julius Genachowski said usage based billing could be an innovative way to bill for broadband.

In reality, New York can decide for itself what is in the best interests of its residents, and Time Warner Cable determined what was best after a two-week firestorm in 2009 that taught them compulsory usage caps were a really bad idea. But Comcast isn’t terribly interested in the views of the unsubstantive masses — which is comparable to their attitude toward customers, so no change there. It’s just a free preview weekend of what we all have in store if Comcast takes over.

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.

Stop the Cap’s Formal Written Submission Opposing Comcast-Time Warner Merger Filed With N.Y. PSC

(Ed. Note: Our formal written submission to the New York Public Service Commission is presented in this series of articles. Please note that any graphics included on Stopthecap.com were not included in the formal filing, but are presented here to make the material more reader-friendly. — PMD)

psctest

STATE OF NEW YORK

PUBLIC SERVICE COMMISSION


Joint Petition of Time Warner Cable Inc. and

Comcast Corporation For Approval of a                                       Case 14-M-0183

Holding Company Level Transfer of Control.


 

 

Statement of Opposition to Joint Petition
Phillip M. Dampier, Director and Founder: Stop the Cap!
Rochester, New York
August 1, 2014

Stop the Cap! is a not-for-profit group founded in Rochester in 2008 to fight against the introduction of artificial limits on broadband usage (usage caps, consumption billing, speed throttling) and for better broadband speeds and service for consumers. Our group does not solicit or accept funding from lobbyists, companies, or others affiliated with the telecommunications industry. We are entirely supported by individual donors who share our views.

telecompromising

Regulators cannot outsmart multi-billion dollar corporate giants with temporary merger mitigation strategies that end up not helping consumers for very long, if it all.

Introduction

Our opposition to the Joint Petition is based on our belief it does not meet the “public interest”  test established in Section 222 of the New York Public Service law, and must therefore be denied.

We are concerned the Commission may attempt a mitigation of Comcast’s failure to demonstrate a public interest benefit for New York residents in its application. The Commission may even attempt to negotiate a monetary public benefit adjustment to afford Comcast the opportunity to pay its way to approval of a merger the overwhelming majority of New Yorkers who have shared their views with the Commission ardently oppose. We submit that the recent change in New York law obligates the applicant alone to demonstrate its proposal is in the public interest. It is not the Commission’s responsibility to propose mitigation formulas that tip the balance in favor of an applicant.

Also lacking in the discussion is a careful analysis and comparison of Time Warner Cable’s existing products and services in contrast with Comcast and, more importantly, the impact of its own upgrade program now underway. It is our contention New York will be better served by retaining Time Warner Cable as the dominant cable provider and rejecting Comcast’s attempt to transfer Time Warner’s franchise agreements to itself. We are not opposed to Comcast independently entering New York and competing head-to-head with Time Warner Cable, although we believe it is unlikely.

Ultimately, we believe Comcast’s executive vice-president David Cohen made one of the strongest arguments why this merger simply does not make sense for New York:

“We are certainly not promising that customer bills will go down or increase less rapidly.”[1]

[1]http://arstechnica.com/tech-policy/2014/02/comcast-no-promise-that-prices-will-go-down-or-even-increase-less-rapidly/

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  • Damian: Thank you for this article. I am currently with Comcast and have 50 Mbps internet speeds. I pump out a monthly average of 600 GB of data usage each m...
  • AustinTX: It's almost like Comcast has a crack team to identify anyone who is getting close to exposing them... and then giving them the push they need to go co...
  • James Cieloha: I prefer that the FCC comes with the idea of the most severe stiffest punishment handed down from the FCC being called the euthanization death penalty...
  • BobInIllinois: As a licensed CPA and auditor, this is very shocking, but very believable when one works for a Big CPA firm. I worked at a small firm, so this kind o...
  • Haiyez: I just got off the phone. I have U450 & Max Plus internet. I was paying $140 a month. The promo is over and now it's about $200 a month. Bes...
  • Fred Pilot: When a service provider views its customers as adversaries, an act like this is construed as enemy action, resulting in the blow up reported here....
  • Atreidae: That's if you live in a "class 1" area. I'm still well withn "metro melbourne" yet my exchange only has Telstra ports and their considered regional. S...
  • LoomsinJune: " I told her that I will just go ahead and cancel my service and sign up with Time Warner and she seemed more than happy to do that than offer to drop...
  • Dave Hancock: I've had the Verizon Quantum 6 tuner/1TB version for about a month (the 12 tuner/2TB version uses two servers) and am pretty happy with it. I no long...
  • Ernesto Honez: Was that a confirmed and signed "contract"? Was it verbal? Was it sent out in a letter as bulk mailing, or with a first class stamp? Was it's delivery...

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