Microsoft is indirectly getting into the internet access business with its support for white-space wireless internet access for two million rural Americans by 2022.

The project will involve a partnership putting Microsoft’s financing together with rural telecommunications companies that want a rural broadband solution for their customers.

Microsoft has spent at least a decade promoting “white space” wireless broadband, which works over unused UHF TV channels. An internet provider markets the service as a next generation Wi-Fi network, capable of serving customers over a much larger distance than traditional in-home or business Wi-Fi. The service transmits from strategically placed antenna towers that are capable of delivering internet access to dozens of families in an immediate area.

Pilot projects not associated with Microsoft are already up and running in selected rural areas with mixed results. None of the projects have lived up to their pre-launch hype, but most have been a significant improvement over satellite internet access. Speed variability and capacity has proven difficult technical challenges, and finding ongoing financial resources to maintain the wireless network once constructed has also been a challenge.

Rural community politics is never too far away. Thurman, N.Y.’s white space broadband project Stop the Cap! wrote about two years ago has turned into a political football. Only about three dozen residents subscribe to the white space internet service and vocal opponents of the project and controversy over other spending initiatives caused the town’s CEO and one board member to resign. Town meetings have deteriorated into shouting matches as recriminations are fired back and forth. One of the project designers resigned after the town refused to honor an invoice for a cost overrun. The white space project was funded with a grant that required local matching funds. With only a few dozen customers using the service, some taxpayers object to underwriting its expenses.

The technology has not been a runaway success in the U.S., but Microsoft has had better luck funding internet access to 185,000 people in 20 wireless projects, many in the developing world.

Microsoft president and chief legal officer Brad Smith today introduced Microsoft’s plan to expand white space internet in the U.S., pointing to a white paper laying out Microsoft’s rural broadband strategy, which will leverage several wireless technologies.

A combination of technologies can substantially reduce the total cost of extending broadband coverage. Specifically, a technology model that uses a combination of the TV white spaces spectrum, fixed wireless, and satellite coverage can reduce the initial capital and operating costs by roughly 80 percent compared with the cost of using fiber cables alone, and by approximately 50 percent compared with the cost of current LTE fixed wireless technology.

One key to deploying this strategy successfully is to use the right technology in the right places. TV white spaces is expected to provide the best approach to reach approximately 80 percent of this underserved rural population, particularly in areas with a population density between two and 200 people per square mile. […] Satellite coverage is expected to be the most cost-effective solution for most areas with a population density of less than two people per square mile, and LTE fixed wireless for most areas with a density greater than 200 people per square mile. This mixed model for expanding broadband coverage will likely bring the total national cost of closing the rural broadband gap to roughly $10 billion.

To cover the costs, Microsoft has agreed to front its own money and recover it later. The Mid-Atlantic Broadband Communities Corp. received $250,000 from Microsoft. Another $500,000 originated with the Virginia Tobacco Region Revitalization Commission and another $250,000 came from the telecom company. Mid-Atlantic hopes to expand white space internet access to 1,000 local customers by the end of the year.

Mid-Atlantic today offers residents in Charlotte and Halifax counties, two rural regions in southern Virginia, free internet access to a limited number of education-related sites with speeds of 3-4Mbps. Customers can pay to access the entire web at those speeds for about $10 a month. A premium tier raises speeds to 8-10Mbps for $40 a month. About 90% of subscribers have chosen the free service, an alarming percentage for any company trying to sell internet access and recoup its investment. It currently costs around $1,000 to hook up each customer, a number local officials hope to reduce to $100 eventually.

Microsoft argues the technology is still cheaper than the alternatives – 80 percent less costly than fiber to the home service and half the price of 4G LTE wireless.

To guarantee the technology will work, Microsoft wants to preserve unlicensed frequencies not currently in use by licensed television stations for “white space” broadband.

“The Incentive Auction reduced the number of available channels that can be used for TV white spaces technologies,” Microsoft noted in its white paper. The company is referring to the FCC’s auction of UHF TV licenses, freeing up channels to be repurposed for wireless data expansion by the country’s mobile phone operators. “To make the significant investments necessary to reach economies of scale, potential TV white spaces network operators and device and chip manufacturers have converged on the need for a minimum of three usable TV white spaces channels in every market, with additional TV white spaces available in smaller markets.”

In other words, Microsoft wants the FCC to ensure at least three unused UHF channels in each city in the country are kept available for unlicensed spectrum users, like white space internet. That brought a scathing response from the National Association of Broadcasters (NAB) who called Microsoft’s request “nonsense on its face”:

The proposal is either unnecessary, because there will be plenty of spectrum, or it is harmful, because there will not be enough. If you were playing musical chairs with someone and he told you, “you must reserve that chair for me, but don’t worry, there are plenty of chairs for everyone,” you would rightly be suspicious. The post-auction repack is essentially a game of musical chairs for displaced low power stations. Microsoft is telling the Commission: (1) it needs to have a chair reserved for unlicensed use, but that (2) there will be no effect from that reservation on anyone else. One of those assertions is untrue.

Microsoft also claims that only the reservation of spectrum can provide the regulatory certainty that Microsoft needs to increase investment in white space technology. But the truth is the Commission just held a lengthy auction of the very spectrum Microsoft claims it so urgently desires. If Microsoft were interested in increasing investment, it had an unprecedented opportunity to get guaranteed access to 600MHz spectrum with a nationwide footprint. Instead, Microsoft is trying to convince the Commission to give Microsoft a backdoor frequency allocation with exclusive access to that spectrum for free, and on better terms than winning auction bidders received.

The NAB objects to Microsoft requesting spectrum without directly paying for it, but Microsoft’s actual request is that those frequencies be reserved for unlicensed users of all kinds, not just for white space internet. The NAB accuses Microsoft of potentially increasing interference for licensed TV stations on a newly crowded, repacked UHF dial, a theory that seems unlikely in the most rural parts of the country where over the air television reception is problematic or non-existent. There are urban areas of the country, particularly in the Boston-New York-Washington corridor where open channel space is either not available or severely limited, but white space internet was designed to resolve rural broadband problems, not urban ones.

To find out what is true and what is theoretical Microsoft announced 12 new white space pilot projects in 12 U.S. states, including Arizona, Georgia, Kansas, Maine, Michigan, New York, North Dakota, South Dakota, Texas, Virginia, Washington, and Wisconsin that will be up and running over the next year. Few details are available about the specific communities involved or the types of access to be offered. Microsoft only said if it gets its way, it could be providing internet access to two million more Americans by July 4, 2022.

Most customers are likely not going to get the FCC’s definition of broadband (25Mbps) from the current generation of white space broadband technology. Speeds are often comparable to DSL and just as variable, depending on reception conditions. The NAB questions whether this technology will really make much difference.

“Microsoft has been making promises about white spaces technology for well over a decade,” the NAB wrote on a blog post, noting it estimates fewer than 300 customers are getting white space internet access in the U.S. “There remain few tangible consumer benefits associated with white spaces deployments across the U.S.”

For states like New York, embarked on their own efforts to achieve 100% broadband penetration, Microsoft’s project may be too little, too late. Governor Andrew M. Cuomo launched the final phase of the New NY Broadband Program in March, seeking to deliver a final round of funding to secure access to high-speed internet for all New Yorkers by the end of 2018, four years sooner than Microsoft’s target date for its project. New York’s rural broadband expansion program relies primarily on incumbent providers and helps subsidize expansion of their networks to reach customers deemed too expensive to serve without supplemental funding.

While up to three-quarters of the staff at Tribune Media’s local TV outlets are expected to lose their jobs after Sinclair Broadcast Group acquires the stations, top executives will exit their management positions both comfortable and rich.

In a filing last week with the U.S. Securities and Exchange Commission, blogger Robert Feder uncovered the golden parachutes awaiting Tribune’s three most senior executives:

• Edward Lazarus, executive vice president and general counsel: $9,681,435
• Chandler Bigelow, executive vice president and chief financial officer: $9,248,157
• Larry Wert, president broadcast media: $7,760,566

The FCC under Chairman Ajit Pai has already signaled its willingness to allow the largest television station owner in the country to grow even larger after relaxing station ownership rules put in place to maintain diversity in the media. Sinclair is among the most closely politically connected media companies in the country, on friendly terms with the Trump Administration. There appears to be little objection among Republican regulators to approve the transaction, accepting Sinclair’s argument that the deal will be good news for shareholders and allow its stations to benefit from “increased operational efficiencies” such as sharing newsrooms, producing “local” news stories at its corporate headquarters in Maryland, and reducing staff.

“For a company as notoriously cheap as Sinclair, ‘increasing its operational efficiencies’ is simply another way of saying mass firings,” wrote Feder. “According to the SEC filing this week, Sinclair expects to realize $266 million of synergies — presumably through layoffs and other cutbacks.”

Employees are nervous.

“Sinclair’s business model is going into a market, buying multiple stations, moving them all to one facility, and firing three-quarters of the staff to get as much work with the fewest employees,” one union official told Media Matters.

“Our employees are very nervous about the situation,” said another. “It is a combination of political influence and that Sinclair is extremely anti-union in dealing with its employees. What is it going to mean?”

Feder says the responsibility for Tribune’s failure to succeed lands squarely in the top suites of the executive offices, ironically the same management team about to be handsomely rewarded for destroying a Chicago media institution:

“Regardless of when it began, there’s no doubt the wreckage culminated with the company’s current board and leadership. With singleminded determination they cashed out everything they could — from the company’s Gothic masterpiece Tribune Tower headquarters, to its forward-looking digital and data business Gracenote, to the very land under its television stations. The biggest shareholders on the board reaped millions in short-term profits while company execs enriched themselves with extravagant payouts.

“All of which led up to the ultimate sell-out to some outfit from Baltimore you never heard of. Keep that in mind when Sinclair starts handing out pink slips to the working men and women who made WGN and Tribune Media the company it was.”

Why share your gigabit broadband service with the rest of your family when each member can have their own, at a price lower than what most U.S. broadband providers charge for much slower service.

HKT, the largest telecom operator in Hong Kong, last week introduced its newest Netvigator product — four 1Gbps (1,000Mbps) connections for $59 a month. An even more aggressive special, available for a limited time only, offers two gigabit speed connections for $21.50 a month. Both offers require a two-year contract.

“This is a ground-breaking achievement,” Alex Arena, HKT Group’s managing director, told the South China Morning Post. “This new multi-use architecture allows segregated use of the circuits, which ensures a high level of service quality with guaranteed speed, as well as enhanced security to protect our customers from the growing threats of malware and viruses.”

Customers receive a new advanced multi-use modem which connects to HKT’s XG-PON optical network. Gigabit ethernet ports on the back offer up to four disparate connections of 1Gbps each, along with slower in home Wi-Fi service.

“The way we use social media and over-the-top streaming video services while working from home, people don’t want entertainment to mess up their home office’s [internet connection],” Arena said. “So I believe there is a huge market for this new service. How quickly this develops is a function of pricing on our part and customers investing in the latest personal computers and cloud computing services at home.”

Hong Kong remains a global leader in delivering superfast, affordable broadband to consumers. Yet many residents still lack access to fiber optic broadband. The Office of Hong Kong’s Communications Authority reports fiber connections have a 39.3% penetration rate. Only about one-third of Hong Kong residents subscribe to fiber service. The primary reason more do not is lack of availability. HKT has two major competitors – Hong Kong Broadband Network and Hutchtel HK. Neither competitor has a fiber network as extensive as HKT.

Montréal-based Cogeco Communications today announced its U.S. Atlantic Broadband subsidiary was growing larger with the acquisition of MetroCast’s cable systems in Maryland, Maine, New Hampshire, Pennsylvania, and Virginia in a deal worth $1.4 billion.

MetroCast, owned and operated by Harron Communications, LP is one of the few remaining independent, family owned cable firms. The Harron family has been in the cable business for more than 50 years.

Two years ago, MetroCast sold its Connecticut cable systems to Atlantic Broadband. Now, the Harron family seems ready to exit the cable industry altogether with the sale of its remaining cable systems. Today’s acquisition will transfer 120,000 internet, 76,000 video, and 37,000 phone customers to Atlantic Broadband.

Cogeco will also receive $310 million in U.S. federal tax benefits from the transaction.

“The acquisition of the MetroCast cable systems allows Atlantic Broadband to increase its presence in the growing and lucrative U.S. cable market,” said Louis Audet, president and CEO of Cogeco Communications. “With this acquisition, we are increasing our customer base in attractive markets adjacent to the ones we currently serve.”

Spectrum cable subscribers still watching cable television without a set-top box will soon need one, or a functional equivalent, for every television connected in their home or business as Charter Communications continues its effort to encrypt all cable channels.

The campaign has now reached Kentucky, where Spectrum is preparing to encrypt every television channel on the lineup and is sending notices to its residential and commercial customers.

The University of Kentucky is working to get the word out to facilities operated by UK they may lose all television service as early as July 11 if they don’t take action.

Encryption forces customers to use set-top boxes or other equipment, often at an additional expense, to continue watching cable television service. Cable companies use encryption to reduce signal theft and eliminate the need to send trucks to disconnect customers at the pole. Instead, Charter will simply deauthorize a customer’s set-top box or other equipment so they can no longer watch when the customer cancels or does not pay their bill.