Cable operators have been looking for a way to expand their broadband service to outside the home, and Comcast, Bright House, and Time Warner Cable have found their answer: WiMax technology from Clearwire.  They’ve joined Intel and Google as minority investors, collectively owning 25% of Clearwire, after investing more than $3 billion dollars in the wireless broadband service.  What do they get for the buy-in?  The chance to market Clearwire services to their cable broadband customers for “on-the-go” broadband.

Comcast High-Speed 2go Metro service launched Tuesday in Portland, Oregon providing consumers with portable speed up to 4Mbps in Clearwire’s own 4G network service area.  Comcast customers can sign up for a promotion for $49.95 a month for one year, which includes their wired cable modem service, a Wi-Fi router, and Clearwire wireless service (regular price after the promotion is $72.95 monthly).  Customers can access the service in any Clearwire 4G service area nationwide.  Where Clearwire doesn’t offer service, customers can “roam” on Sprint’s 3G data network nationwide for an additional $20 a month more.  There are no known usage limits at this time.  Existing Comcast broadband customers in Portland can add the Clearwire-based service starting at $30 a month.

The service will work for laptops, but not mobile data devices.  Comcast’s investment in Clearwire made such a venture possible, and is expected to compete with mobile phone broadband data plans, which typically offer 5GB of service for $50 a month.

Comcast will sell service in Atlanta, Chicago and Philadelphia by the end of 2009.

While the service will be useful for Comcast customers who travel or who want more reliable, fast wireless data access, Clearwire’s ability to serve as a true competitor to Comcast, Time Warner Cable, and Bright House may be compromised by those partnerships.

Could Clearwire effectively create promotions and plans that could lead to customers cutting the cord on their cable broadband provider?  Should cable companies increase their investments and ownership interest in Clearwire, would it ultimately matter to them where you obtained service?

Helping to spur additional competition, AT&T announced the availability of its U-verse service in parts of Corpus Christi, Texas and the communities of Springfield, Champaign, Danville and Decatur, all in central Illinois.

“Today’s launch of AT&T U-Verse reflects our commitment to make the investments necessary to bring consumers across central Illinois a new era of true video competition,” AT&T Illinois president Paul La Schiazza said in a statement.

In Illinois, dissatisfied Comcast customers were tearing up one of the local newspaper’s message boards.  Here’s a sampling:

• Now maybe Comcast will get better service and lower their OUTRAGEOUS prices.
• Comcast: Can you hear the sound of competition and angry customers? Can’t wait to get a cable carrier that actually plays all of the available Cardinals’ games.
• Will they have it in Chatham? I will be ready to sign up to get rid of Comcast! What parts of Springfield will get U-Verse, and what parts will be left out in Comcast’s cold?
• I can’t wait to get rid of Commiecast.

Troy Wolverton had a problem.  He wanted to send 170 pictures to Kodak to arrange to have them printed in time for Father’s Day.  It turned out to be a true labor of love, as he waited hours to send the 800 megabytes of imagery to Kodak’s online processor.

Troy Wolverton writes tech news for the Mercury News in California

As more than three hours passed, Wolverton began to ponder why the upload seemed some poky.  He subscribes to Earthlink, which supplied him with a 3Mbps connection.  Assuming that speed was available for both uploading and downloading, it would have taken less than an hour to get the job done.  But as virtually every customer of an Internet service provider finds, your download speed is many times faster than your upload speed.  In this case, Wolverton was suffering with a 384kbps upload speed to get those photos to Kodak.

In fact, while download speeds have been increasing at a steady clip, many have discovered upload speeds have barely budged, if at all, since broadband service became available in their area, often more than a decade ago.  Rochester, New York is one such example.  Time Warner Cable’s Road Runner service was introduced officially in 1998 with a download speed of around 5Mbps, but the upload was just 384kbps.  Today, standard Road Runner service provides 10Mbps for downloads, but the upload speed has remain unchanged, despite more than a decade having passed.

Networks were originally designed to provide more speed for downloading, and less for uploading, based on the presumption subscribers would take more than they “gave” to the Internet.  That remains essentially true today, but subscribers are increasingly relying on their upload connection to send pictures, movie clips, and other larger files to their friends, family, or work.

But broadband companies seem oblivious to this trend. If you look at the plans offered by the Bay Area’s two main providers, Comcast and AT&T, it’s all but impossible to find one in which the upload speed comes anywhere close to the download speed. To get an upload speed that’s faster than a slow download rate, you have to subscribe to one of the pricier plans, like Comcast’s Extreme 50, which gives you a 10 megabit per second upload connect — at a cost of $100 a month.

Comcast and AT&T officials say they are watching consumer Internet usage trends. They note that as their companies have ramped up download speeds, they’ve tended to increase upload speeds as well and will continue to do so. The download and upload speeds they offer are simply a response to market demand, they say, claiming that the vast majority of their customers still download far more data than they upload.

“We’re designing our products based on how we see consumers using them,” John Britton, an AT&T spokesman, told me.

Wolverton thinks the lack of competition also has a lot to do with it.

In terms of Internet access providers, the Bay Area essentially has a duopoly. There are numerous small players such as EarthLink, but Comcast and AT&T dominate — and duopolies tend to not have a good read on real market demand. People often buy one of their products because they don’t have any other choices — not because they meet their needs.

In other words, if the market were more competitive, a company might be able to build a successful business by catering to people who want faster upload speeds.

Just because consumers use their connections to download more data than they upload isn’t proof that they don’t want to upload more. The slow speeds could well discourage folks from doing more uploading. And they may well find a use for faster upload speeds — if they had them.

I’d love to be able to back up the videos, songs and documents on my computer to a server on the Internet. But with my slow upload connection, that’s not really an option because it would take days of uninterrupted uploading to back up any significant portion of my hard drive.

Frontier Essentially Accuses Time Warner Cable of Being a Shakedown Artist

Early indications of a more challenging second quarter of 2009 may be what’s behind the sudden speed increases and new promotions being run by providers, who are also counting on signing new customers, now that moving season is in full swing.  A roundup of promotions and service adjustments customers may find enticing them:

AT&T

U-verse Internet Max customers received free upgrades last week in most areas, boosting broadband download speeds from 10Mbps to 12Mbps.  AT&T previously announced a slowing of U-verse deployment for economic reasons.  AT&T competes with cable operators offering video, voice, and broadband service.

Cablevision

Cablevision Systems continues to offer new customers taking at least a combined broadband and phone package a $200 American Express gift card through June 30.  The company already announced major increases in premium speed levels, and promises no limits on consumption.

Comcast

Reduced pricing in highly competitive Washington, DC market for premium 50Mbps service to under $100, for customers signing up for at least two Comcast services (video, voice, and/or broadband)

Frontier

A substantial mailing offering discounts and giveaways was sent through postal mail to consumers in many Frontier service areas.  Frontier is using a cable-critical mailer depicting their cable competitor as “Rob” and “Bill.”

Rogers (Canada)

Rogers, which earlier increased rates for subscribers, announced a “free speed increase” to its “Hi Speed Internet Express” package, from 7Mbps to 10Mbps, and “Internet Lite” from 1Mbps to 3Mbps.  Rogers limits its customers typically to 60GB of consumption per month for standard levels of service.  Much lower limits are placed on economy packages.

Time Warner Cable

Time Warner Cable is continuing to mail customer postcards and other mailings promoting its existing service packages, but this week also attempts to pick up customers trapped in Frontier term contracts by agreeing to cover early contract termination penalties, up to $200.  Time Warner Cable is also hinting that cable customers will soon be able to use Tivo software for their Digital Video Recorder (DVR) boxes, which permit customers to record programming.

Verizon

Verizon announced substantial speed increases throughout their service area. The company also has engaged in a price war with Cablevision over gift cards. Verizon offered $150 gift cards to new customers signing up for a service bundle (although Cablevison beat their offer by $50).  The company also began promotional giveaways to customers signing a contract agreement.

To date, AT&T continues tests limiting consumption to as low as 20GB per month in Beaumont, Texas and Reno, Nevada.  Comcast has a straight limit of 250GB of consumption per month for residential customers nationwide.  Frontier defines “acceptable use” at 5GB consumption per month, but does not enforce it at this time.  Rogers limits consumption based on the level of speed selected by the customer.  Most customers face a 60GB monthly limit.  Time Warner Cable tested, but temporarily shelved, tiered pricing and consumption limits.  Other providers not listed have no Internet Overcharging schemes in place.

Verizon FiOS, the fiber to the home service from “the phone company” in many areas around the country, today formally announced it was increasing broadband speeds for customers to provide them with better service.  FiOS often provides the fastest Internet speeds in the markets they serve, prompting speed, service, and occasionally even price wars wherever Verizon competes with cable companies.

Verizon’s strong competition makes cable think twice about conducting Internet Overcharging experiments with talk of limits, tiers, and other anti-competitive, anti-consumer pricing.

“From its inception just five years ago, Verizon FiOS has transformed the American broadband and home-entertainment experience by delivering innovative services that our competitors can’t match,” said Mike Ritter, chief marketing officer for Verizon Telecom. “Today FiOS leaps forward again with faster two-way broadband speed options that free customers to fully participate in today’s interactive, multimedia Web.”

Verizon is doubling-to-quadrupling the upstream connection speeds and increasing the downstream connection speeds of its most popular FiOS Internet offerings. The company has raised the connection speed of its entry-level FiOS Internet service from 10/2 megabits per second (Mbps) to 15/5 Mbps, and has raised the connection speed of its flagship, mid-tier offering from 20/5 Mbps to 25/15 Mbps. In New York City, on Long Island and in other New York City suburbs, FiOS Internet is even faster with a new entry-level connection speed of 25/15 Mbps, and a new mid-tier offering of 35/20 Mbps, available only in bundles.

According to a survey of residential broadband users in the U.S. by the market intelligence firm In-Stat (“US Broadband Speeds on the Rise,” In-Stat, Feb. 2009), the average upstream connection speed used by cable broadband customers is 2.68 Mbps. Verizon is offering speeds two-to-seven times faster than this typical cable upload speed.

Verizon’s standard service plan offers new customers in many areas some dramatic improvements, leaving services like Time Warner Cable and Comcast in less competitive areas in the dust:

Verizon FiOS Standard Service (outside of NYC/Long Island) (was 10Mbps/2Mbps) is now 15Mbps/5Mbps
Time Warner Rochester Standard Service remains 10Mbps/384kbps
Price per month $45 (TWC charges $5 less if you are a cable customer)

Verizon FiOS (‘Faster’ Plan) (outside of NYC/Long Island) (was 20Mbps/5Mbps) is now 25Mbps/15Mbps
Time Warner Rochester Turbo Plan remains 15Mbps/1Mbps
Verizon plan is $65 per month, Time Warner Turbo is cheaper but has much slower upload speeds, and runs around $50 a month.

The new speeds are available to new customers or those existing customers who wish to upgrade to a new contract with Verizon (one year term commitments are common for FiOS).  But customers who sign up for a bundle package of telephone, broadband, and video service will also receive a free Flip Ultra Camcorder or Compaq Mini Netbook.

Of course, where Verizon FiOS does not compete, expect more of the same from incumbent providers, who continue to contemplate ways to extract more money from customer’s wallets for the exact same, comparatively slow service.