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The Broken Promises of Big Telecom: ‘Fiber for All’ Funding Diverted for High Profit Wireless

Phillip Dampier November 21, 2012 Astroturf, AT&T, Audio, Broadband Speed, Comcast/Xfinity, Community Networks, Competition, Consumer News, Data Caps, Public Policy & Gov't, Rural Broadband, Verizon, Wireless Broadband Comments Off on The Broken Promises of Big Telecom: ‘Fiber for All’ Funding Diverted for High Profit Wireless

The United States once led the world in Internet speed and infrastructure. Now, according to one estimate, it ranks at about 29. Brooke talks to David Cay Johnston, journalist and author of “The Fine Print: How Big Companies Use Plain English to Rob You Blind,” who says that companies continue to raise prices and engage in lobbying efforts to rewrite regulation, while avoiding necessary upgrades to infrastructure that would speed up America’s Internet.  Companies promised major fiber broadband upgrades, but diverted that money to building a wireless conglomerate instead. (6 minutes)

DirecTV’s Expensive ViaSat Satellite Broadband: Up to 25GB a Month for $119.99

Phillip Dampier November 21, 2012 Broadband Speed, Consumer News, Data Caps, DirecTV, Rural Broadband, ViaSat Exede, Wireless Broadband Comments Off on DirecTV’s Expensive ViaSat Satellite Broadband: Up to 25GB a Month for $119.99

Rural Americans already depend on their satellite dish to receive hundreds of channels of television entertainment, but broadband over satellite has traditionally been slow, limited and very expensive.

There is little evidence things will change quickly for those without access to traditional cable or phone company DSL. But the launch of new, higher capacity satellites, have at least increased satellite broadband speeds and eased back on extremely low usage caps under a provider’s “fair access policy.”

This week, Viasat’s Exede broadband pricing through DirecTV was formally announced. The “up to 12Mbps” service will cost:

  • $39.99 for 10GB of monthly usage;
  • $69.99 for 15GB;
  • $119.99 for 25GB

These discounted prices are good for the first year of a two year contract. Prices increase $10 a month for the second year. Contract customers will have the $49.99 installation fee credited back on a future invoice.

There is one significant improvement: the satellite service removes the data cap between 12 midnight-5am daily – good for automated downloads, software updates and any other high bandwidth applications.

Customers have until Jan. 31 to sign up for the promotion.

 

33 New Hampshire Communities Getting DSL Expansion from FairPoint

Phillip Dampier November 20, 2012 Broadband Speed, Competition, Consumer News, FairPoint, Public Policy & Gov't, Rural Broadband Comments Off on 33 New Hampshire Communities Getting DSL Expansion from FairPoint

FairPoint Communications will introduce DSL service across 33 New Hampshire communities that either have incomplete coverage or no broadband at all.

At least 4,000 homes and businesses will gain access with financial assistance from the FCC’s Connect America fund.

FairPoint says it has invested $189 million in network infrastructure since purchasing northern New England landlines from Verizon Communications. That investment has targeted broadband improvements through fiber middle mile networks and extended DSL service with Ethernet and DSLAM equipment. The last mile installation to individual homes and businesses requires a suitable return on investment. If a provider cannot recoup expenses within a few years, those failing the test will not receive service. The Connect America Fund covers some of the investment costs, bringing rural areas closer to the return expectations providers have.

FairPoint earlier promised to reach 95 percent of New Hampshire with broadband service, with similar goals in Maine and Vermont.

FairPoint customers in larger northern New England communities can also expect eventual speed upgrades as the company continues to work on deploying next generation DSL technology.

Cable competition in the region is spotty, with Comcast and Time Warner Cable providing the bulk of service, mostly in the largest communities.

The communities slated to see DSL service (or extended service into previously unserved areas) include:

Alexandria, Barrington, Bartlett, Canterbury, Concord, Conway, Cornish, Croydon, Dorchester, Dover, Durham, Effingham, Epping, Epsom, Franklin, Gilmanton, Goffstown, Grantham, Jackson, Lee, Litchfield, Manchester, Meredith, New Hampton, Nottingham, Orange, Ossipee, Pembroke, Richmond, Sanbornton, Strafford, Tuftonboro and Wolfeboro.

Another Lafayette Headed for Fiber-Fast Broadband; Comcast May See Competition in Indiana

Phillip Dampier November 20, 2012 Broadband Speed, Comcast/Xfinity, Community Networks, Competition, Consumer News, Metronet, Public Policy & Gov't Comments Off on Another Lafayette Headed for Fiber-Fast Broadband; Comcast May See Competition in Indiana

Lafayette, Ind. is just one city council vote away from securing fiber broadband competition for the community of 67,000 residents in west-central Indiana.

Fiber provider Metronet is interested in providing broadband, television, and phone competition to business and residential customers who currently have one choice for cable: Comcast. Frontier provides satellite and DSL broadband to parts of the community as well, but neither stands a chance of competing against the fiber speeds Metronet is capable of providing Tippecanoe county.

Two previous city council votes were in favor of the Metronet project, which will not cost the city a dime.

“The city is issuing bonds that private investors are going to buy,” city counselor Eddie VanBogaert told The Exponent. “We have these people already lined up. This company is going to be able to get a tax break effectively on putting about $60 million worth of fiber infrastructure across the city.”

Metronet intends to start operating in more populated parts of the community and build its network further out over time. The city will hold a right of refusal on the lines, which means if Metronet were to fail or seek to sell its operations, the city can control who ultimately runs the fiber infrastructure. In the past, cable operators have ended up launching predatory price wars against new competitors, eventually buying them out and raise prices back to pre-competition levels.

The final vote by the city council will be held Dec. 3.

Stop the Cap! first reported on this venture in a piece published in January.

Time Warner Entertainment Chief Denigrates Young and Cable-Nevers

Phillip Dampier November 20, 2012 Consumer News, Online Video 6 Comments

Bewkes

What cord-cutting?

The “other” Time Warner — the separate entertainment company no longer affiliated with Time Warner Cable, has a chief executive who regularly downplays the threat of cable customers dropping television service and switching to alternate forms of online viewing.

At a conference in New York, CEO Jeff Bewkes said cord cutters largely fell in two categories:

  1. Low income households who could never afford cable and still can’t;
  2. Wealthy kids who grew up without cable television, still don’t have it now that they are living on their own, but can easily afford “three Starbucks a day” and don’t mind paying just about any price for the cost of content they actually want.

Bewkes cannot understand what people are complaining about when they open their monthly cable bill. After all, he argued, the value of  cable television and broadband have gone up with larger channel packages and speed upgrades without major price hikes.

But Bewkes’ definition of “major” may differ from those in middle class households who cannot afford rate increases that far outpace inflation year after year.

For now, Time Warner signaled it intends to remain loyal to the “all-or-nothing” cable package. That makes the chance of finding their entertainment shows available a-la-carte or online on-demand without a paid subscription pretty poor.

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