Rep. Marilyn Avila

North Carolina residents:  Rep. Avila’s H129, brought to you by Time Warner Cable, is being jammed through the state legislature tomorrow with no public input, no real review, and no thought for the ordinary voter in the state.

The House Public Utilities Committee will “discuss” the measure during Wednesday’s Public Utilities Committee meeting at 12 noon, in room 643 of the Legislative Office Building in Raleigh, quickly followed by a vote.  Bought and paid for by the state’s cable and phone companies, this bill will guarantee every resident in the state will face relentless rate increases, unchecked by competition.  Even worse, the state of the art broadband networks that finally deliver the kind of quality broadband the state deserves will be forced to shut down because of the ludicrous conditions the legislation requires for them to continue.

That means no more fiber broadband for your state — just the same old slow cable and DSL service that has left North Carolina far back in national broadband rankings.  Even worse, without community-owned networks, the chances of a competitor arriving to bring better service at lower prices are practically zero.

For rural North Carolina, H129 is nothing less than total devastation.  It will destroy any chance for rural communities to take care of the broadband needs of their citizens big cable and phone companies have ignored for years.  Make no mistake — H129 spells disaster for every North Carolina resident who isn’t an executive of a cable or phone company.

No citizens have asked for H129 to be introduced. It, like all of its predecessors, is a creature of Big Telecom — custom-written to do their bidding at your personal expense.  With a wined-and-dined Republican majority (some of whom were flown out to San Diego for a telecom-paid vacation seminar, complete with a BBQ bash), the only thing that stands in the way of this nightmare becoming law is you.

Every legislator knows there is a price to be paid for special interest legislation like this.  If it threatens to cost them enough votes to put their re-election at risk, they will bury the legislation or openly vote against it.  If they believe you are not paying attention, they’ll vote yes and gratefully accept the cable company’s next contribution check for a job well done.

You have less than 24 hours to make sure they know you are paying attention, and you will not support any legislator who votes against your best interests.

Tell them to vote NO on H129. Representative Steen is the Committee Chair and can be reached at [email protected] or 919-733-5881.

Here is a complete contact list for your convenience.  Click on the representative(s) to get their direct contact information.  Phone calls are most effective followed by e-mail.  Feel free to pursue both.

North Carolina's House of Representatives

The House Public Utilities Committee

North Carolina's Cable Monopoly Protection Act

QUESTIONS THAT NEED TO BE ASKED ABOUT REP AVILA’S ANTI-BUSINESS, ANTI-LOCAL BROADBAND BILL

Will the industry be subject to the “level playing field” requirements of H129/S87?

NO. The industry would cease providing broadband services if they were subject to the requirements of this bill, due to the onerous burdens it places on broadband providers.The federal government and North Carolina deregulated broadband and cable services years ago; this bill re-regulates those services only if they are provided by local communities. The purpose of this industry-sponsored bill is to slant the competitive playing field in the industry’s direction and prevent local communities from providing their residents the broadband they need.

Why does the industry want local governments subject to the requirements of H129/S87?

So local broadband networks don’t develop Industry spokesmen say if local governments want to enter the broadband business they must play by the same rules as the private sector. Cable and broadband services were deregulated years ago and community broadband systems are subject to the same broadband rules as the private companies. This bill is designed to remove business and consumer choice and access to broadband services.

Is this bill actually good for the private sector?

NO. This bill will harm the private sector. The real private sector, local businesses, depend on access to reliable, advanced broadband infrastructure to sell goods and services.Yet large portions of our state remain unserved by the large telecoms or are served by unreliable, dated technology.  So local communities have stepped in to build the critical reliable infrastructure that will let their private sector flourish. This bill is only good for the large out-of-state telecom corporations whose monopolies benefit from being able to charge our local businesses higher rates due to lack of choice. North Carolina needs more broadband providers, not less.

Will this bill prevent public/private broadband partnerships, like Google Fiber?

YES. §160A-340.4 limits the funding, construction or improvement of any community broadband to general obligation bonds which impose severe limits on private sector investments in the system.  This bill will stop even public/private attempts to compensate for a lack of local broadband service.

Are the cable and telephone industry really interested in the welfare of taxpayers?

NO. The industry does not care about local taxpayers; they care about profit. If Time Warner Cable cared about taxpayer burdens,why have they raised cable rates on businesses and residential taxpayers every year? §160A-340.4 of the bill, actually shifts the financial risk of local systems directly to taxpayers by requiring that community systems are funded directly on the backs of taxpayers via general obligations bonds. §160A-340.1(b) also removes the requirement that the public vote before the sale of a community system occurs!

Big Telecom dollars buy custom-written corporate welfare bills that you will eventually pay for.

How do we ensure public accountability on public broadband projects without H129/H87?

The General Assembly has already established: (1) rules governing Public Enterprises (NCGS Chapter 160A, Article 16); (2) strict rules in the Budget and Fiscal Control Act governing all municipal budgets and expenditures, including hearing and disclosure requirements (NCGS Chapter 159, Article 3); and (3) strict oversight of municipal borrowing by the Local Government Commission (NCGS Chapter 159); and municipalities are subject to public document “Sunshine” laws, which Time Warner Cable has repeatedly used to obtain access to municipal financial and strategic planning decisions. In contrast, North Carolina’s telephone and cable companies are not required to publicly reveal any information about their systems.

Are portions of H129/S87 unconstitutional?

YES. The big telecoms want you to vote for a bill that is in contravention of NC’s state constitution. Their bill violates § 2(3) of Article v of North Carolina’s Constitution, which exempts all municipally-owned property from taxation by requiring municipalities to pay property taxes on broadband and other communication systems by renaming the property tax a “payment in lieu of taxes.

Will H129/S87harm public safety networks?

YES. Public Safety networks are typically regional communication networks of Counties, Cities, and Towns who pay fees and receive federal grants to cover operational costs. This bill would shut them down by limiting their service areas and imposing restrictive rate-setting and financial limitations;it will also make them ineligible for Homeland Security, ARRA and Farm grants.

Shocked onlookers moments after the earthquake struck downtown Christchurch

A major magnitude 6.3 earthquake has devastated the Canterbury region of southeast New Zealand, particularly the central business district of the city of Christchurch, knocking out power, water, sewer, and several telecommunications networks across the region.  The wireless networks that remain have been so overburdened, government officials have declared use of those networks limited to emergency use only.

Two aftershocks — one magnitude 5.6 and another 5.5 — shook Christchurch within hours of the initial 6.3 earthquake, causing damaged buildings to crumble, including parts of the 130-year-old Christchurch Cathedral. Its spire toppled into the city square, falling onto throngs of tourists who ran from the building in terror as the temblor struck.

Dozens are dead, with scores more injured, particularly in the Christchurch city center, where the quake struck just after lunch.  Shocking raw video has appeared on national television showing bloody bodies strewn amongst the rubble, and hearts are broken over stories such as the death of nine month old toddler who survived the quake, but not the large flat panel television that toppled down on him during an aftershock.

Telecommunications services were reduced to a state of virtual unusability following the quake because of cable cuts and congestion, as Prime Minister John Key informed Parliament the government was forced to initially rely on a sketchy satellite link to speak with civil defense officials in the city of 376,000.

The city’s local television station — CTV, was reduced to rubble as the seven-story building pancaked, tossing some employees working on the fifth floor into the middle of Madras Street below.  They were the lucky ones, surviving as astonished onlookers ran up to help.

National media has described the Canterbury earthquake as “New Zealand’s darkest day,” and most radio and television stations still on the air have ceased regular programming to relay the country’s National service from Radio/TV New Zealand, or the country’s national news-talk network Newstalk ZB.

New Zealand’s Internet services are functioning, but sporadic in many locations.  The national public broadcaster, Radio/TV New Zealand, is relying on its international shortwave radio service Radio New Zealand International to get its signal out to the rest of the world as its live Internet streams initially failed.  Many other broadcasters in Christchurch have lost their links to transmitters, or temporarily lacked power to stay on the air.

The region’s landline telephone network remains functional where cable cuts have not interrupted service, but since many New Zealanders rely on cell phones, the country’s wireless networks quickly were overwhelmed with worried callers.  Large parts of New Zealand’s cell phone network in the south is now completely reliant on battery backup power, due to widespread power disruptions.  Keeping those sites operational is critical, as scores of office workers in Christchurch are texting messages indicating they are still alive, but trapped in damaged or collapsed buildings.

Emergency generators are being pressed into service as providers recognize their wireless networks are often the only reliable link residents now have with the rest of the country. Some cell sites operated by Telecom New Zealand (TNZ), Vodafone and 2Degrees equipped with solar or battery backup systems began to fail last night.

“We’re asking our customers in Christchurch to have patience if they lose service. Although we can’t identify which sites will lose battery power or when, we know that they are generally in good shape so can be placed back in service once power becomes available,” says 2degrees CEO Eric Hertz.

TNZ and their biggest competitor Vodafone have set aside their rivalry and are coordinating efforts to keep the country’s networks up and running.  Staff of both companies have been largely ordered to remain home, as technicians on duty at the time of the quake pull overtime duty.  Emergency 111 service, today answered by operators in Wellington 190 miles away, is now prioritized and customers have been told by government officials that cell phone use in the affected region should be limited for emergency calls only.

All public payphones in Christchurch discontinued paid service as of this morning — all calls are now free.

Vodafone reports SMS text messaging service between networks is not functioning at this time.  That means Vodafone customers cannot send or receive text messages to anyone outside of Vodafone’s own network for the time being.

All three carriers are recommending wireless customers across the entire country use text messaging rather than calling to keep congestion to a minimum.  Text messages rarely overload wireless networks.  Most providers are also waiving contract cancellation penalties for customers whose homes or businesses were heavily damaged or destroyed, and will forward calls to functioning phone numbers at no charge.

Cable modem service in Christchurch is disrupted wherever cable cuts exist.  DSL from TNZ is also sporadic for the same reasons.

While power is expected to return across Canterbury as daybreak now arrives, officials warn outages in essential services will persist for days, if not weeks, in some particularly hard-hit areas.

Live Coverage

• NewstalkZB – broadcasting on all FM frequencies in Christchurch controlled by “RadioNetwork”
• Radio Live
• Radio New Zealand (streaming is sporadic/non-functional at this time)
• TV New Zealand (Choose “Live International Stream” when available)

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/TVNZ Quake Damage 2-22-11.flv[/flv]

TV New Zealand presented coverage moments after the quake occurred.  Some of these reports and raw video contain extremely graphic and disturbing imagery.  (30 minutes)

This home in Silver Spring became fully involved in fire after neighbors couldn't reach 911 and had to rescue the 94-year old resident themselves.

More than 10,000 calls to 911 during last month’s blizzard on the east coast failed to reach emergency officials over Verizon’s network according to the Federal Communications Commission.  Even worse, terrorism experts suspect the 911 failures could impact the entire nation during a major disaster, weather event, or terrorist attack.

Last month, a Silver Spring residence went up in flames and neighbors had to rescue the 94-year old owner themselves after repeated attempts to call 911 failed.

The latest and most serious incident occurred in Washington, D.C. and its suburbs Jan. 26 when a snowstorm triggered more than 10,000 calls for help that never reached emergency responders.  The blame is being laid at the feet of one company — Verizon Communications.

All 14 circuits in the Verizon network that properly route all wireless calls in Montgomery County failed and nine of 10 Verizon circuits in Prince George’s County failed over a five-hour period on the night in question. This resulted in approximately 8,300 blocked 911 calls in Montgomery County and 1,700 blocked 911 calls in Prince George’s County that evening, according to Rear Admiral Jamie Barnett, Chief of the FCC’s Public Safety and Homeland Security Bureau.

“I know that you will agree that any 911 call which is not connected can have serious consequences, but the large number of missed 911 calls on January 26 is truly alarming,” Barnett wrote Verizon. “The ability to call 911 is critical to the safety of the public. This is especially true during extreme weather events. The public rightly expects that they can use 911 to reach the appropriate first responders in an emergency. In addition to your written response, I request a meeting with appropriate representatives from Verizon within the next two weeks to discuss your resolution of this matter.”

Barnett and the FCC also expressed concerns these problems may not be an isolated incident, but could be a nightmare waiting to happen wherever Verizon provides telephone service.

Verizon blamed an equipment failure and an avalanche of calls for the problem.

“We have been addressing this issue directly with the counties involved, and will work cooperatively to address the FCC’s questions, as well,” said Harry Mitchell, a Verizon spokesman.

[flv width=”600″ height=”380″]http://www.phillipdampier.com/video/Montgomery County 911 No answer.flv[/flv]

This YouTube video shows a 911 call in Montgomery County going unanswered for nearly a minute and a half.  (2 minutes)

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/WUSA Washington 911 Service Problems 2-22-11.flv[/flv]

WUSA-TV in Washington has followed the 911 disruptions for several weeks now.  Channel 9 picks up the story starting with the fire in Silver Spring.  (6 minutes)

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/WTTG Washington 911 Service Problems 2-22-11.flv[/flv]

WTTG-TV in Washington also reports on the frustration from 911 callers as well as city and local officials annoyed with Verizon.  (6 minutes)

Windstream, one of America’s largest independent phone companies, has reported lower profits in the fourth quarter, declining four percent year-over-year to $72.4 million.  Windstream’s core business continues to decline — losing another 36,000 landline customers during the quarter, as Americans continue to drop traditional telephone service.

But Windstream’s ongoing acquisitions, as structured, are helping boost revenues on the company’s balance sheet.  Windstream completed four acquisitions in 2010: the phone companies Iowa Telecom, Nuvox and Q-Comm Corp, and a data center operator, Hosted Solutions.

Although boosted revenue numbers can temporarily improve a company’s share price, investors are unlikely to ignore Windstream’s ongoing decline in profits for much longer.  Windstream officials expect revenue growth for 2011 to remain flat, or potentially edge up by 3 percent. But part of that revenue growth comes from $40 million in broadband stimulus funding the company expects to receive from the Obama Administration during the year.

Windstream's 2009 announced purchase of Iowa Telecom expanded Windstream's reach.

Windstream has made inroads in expanding broadband service in its largely rural service areas.  The company added 12,000 broadband customers during the quarter, mostly for its DSL product.

Windstream’s results show a growing disparity between its residential customers and its business services unit.  While growth on the residential side has been flat to anemic at best, the company is finding better results from its business customers.  The decision to acquire a data center is part of the company’s growing strategy towards those clients.  Windstream plans to spend a considerable amount of its capital during 2011 on improving its data hosting and wireless backhaul product lines to service these customers.

“We’ve made great strides in our business channel, which now represents roughly half of Windstream’s total revenue and importantly, these revenues are growing,” said Brent Whittington, chief operating officer at Windstream.

Windstream’s acquisition plans for 2011 appear cooler than in previous years as it attempts to reduce its leveraged debt.  Most of Windstream’s growth has been attributed to its aggressive mergers and acquisitions strategy.  The company, created in 2006 from Alltel’s landline division and Valor Telecom has grown into a national player, serving nearly 3.4 million customers in 23 states.  Among its larger acquisitions — CT Communications (2007), D&E Communications (2009), and Iowa Telecom (2010).

Despite the lower profits, Windstream’s dividend payout ratio was 57 percent for the year, and the company expects to pay between 52 percent and 59 percent of earnings for 2011.

Inner city Americans pay substantially more for broadband service than their neighbors in wealthy suburbs, while rural America pays the highest prices of all for broadband service, according to the results of a new study.

The Investigative Reporting Workshop at American University analyzed broadband speeds and service around the nation’s capital to learn how broadband is priced in different neighborhoods and communities.  The study covered the eighth largest metro area, which included over five million residents in the District of Columbia, Maryland, and Virginia.

Broadband providers never release specific data about their customers’ broadband service and the prices they pay for it, considering it a closely guarded business secret.  The Workshop went direct to consumers to get around this limitation, combining actual speed test results with the true cost of standalone broadband service reported by study participants.  It’s among only a handful of studies that rely on actual raw performance and pricing data — not company-provided general marketing information about speeds and pricing.

The conclusions expose a dramatic difference in broadband pricing depending on where one lives, what company they do business with, and how well each company’s network performs.

The results?  Broadband pricing was cheapest from Comcast, the region’s dominant cable company and most expensive, by far, from a wireless ISP (WISP) that serves the Culpepper, Virginia area.  Residents in wealthy suburbs in Fairfax County, Virginia and Montgomery County, Maryland enjoyed the best bang for their buck, charged nearly half the price-per-megabit that residents inside the urban District of Columbia pay.  Rural residents were stiffed with high prices for comparatively slow speed service.

Verizon, the area’s dominant phone company did poorly in the study, in part because of the substantial number of legacy DSL customers who are paying a lot for little speed.  Although Verizon’s fiber-optic FiOS service is making inroads in some parts of the study area, its high speeds don’t reach enough customers to offset Verizon’s larger base of DSL customers.

Here’s how Comcast and Verizon compared:

• Comcast, according to an average of 1,254 surveys, charged customers $5.76 per Mbps;
• Verizon, according to 1,744 surveys, charged $12.34 per Mbps — more than twice as much as Comcast.
• Verizon charged $50.86 per month on average.
• Comcast charged $52.68.
• The median, or midpoint price, is much lower, at $5.13 per Mbps for Verizon and $2.84 for Comcast.

Cox Communications, a cable company that serves Fairfax County and Fredericksburg in Northern Virginia, charges $6.60 per Mbps, according to 528 surveys. Cox’s monthly average cost was $46.77.

Rounding out the five regional providers, RCN Corp., averaged $11.06 per Mbps, or $48.57 per month, for a median price of $5.77 per Mbps, according to 126 surveys, and Clearwire Corp., according to 172 surveys, averaged $16.19 per Mbps for $42.16 per month and a median price of $12.47 per Mbps.

By far the worst values went to rural customers.  Overall, the study found rural residents pay $30.28 per Mbps (based on 431 surveys) and $53.84 per month for service, a per-megabit rate far higher than the other three regions.

Virginia Broadband LLC, a Culpeper, wireless broadband provider, offered the worst value. According to a summary of 24 surveys, the company charges a whopping $198.13 per Mbps, the most of any company that underwent more than one test. The average monthly bill was $94.07, and the average speed was less than a megabit per second.

Comcast, RCN, and Virginia Broadband did not respond or refused to comment.  Verizon said the results were unfair because it did not distinguish between FiOS fiber to the home customers and their traditional DSL service.

They also criticized the study’s price comparisons, which relied solely on standalone broadband service pricing.  Verizon, like most providers, discounts services to customers who choose to bundle their telecommunications products together.

The study arrives at the same time the federal government has released their own national broadband map, which relies to a large degree on information volunteered by broadband providers.

The study has been criticized for not accurately depicting true broadband speeds and pricing, which can distort the true picture of broadband availability across the United States.