The Federal Communications Commission wants to know how fast your broadband connection is.  The federal agency is now offering consumers and businesses a chance to test broadband speeds to raise awareness about broadband.  But the test results also help illustrate the wide variation between speeds promised by providers and those actually experienced by customers.

The FCC wants to collect this information because broadband providers have often refused to provide it themselves, citing customer privacy or an unwillingness to release potentially useful information to competitors.  By asking visitors to supply their street address and general location, the agency can at least develop anecdotal information about the range of speeds Americans experience.

However, the agency is likely to discover wide variations in the accuracy of the results based not on what service providers deliver, but instead what the speed test itself reports.

The FCC is relying on two speed test providers, randomly assigned to those taking the test.

• Measurement Lab (M-Lab), which provides researchers with Internet measurement tools on a collaborative basis, and
• Ookla, a private company that provides web-based network diagnostic applications.

Stop the Cap! used both providers to conduct three individual speed tests from Broadband.gov.  There were dramatic differences in results.  M-Lab consistently reported far slower speeds than Ookla.  Ookla’s results were closest to the advertised speeds from our broadband provider — Time Warner Cable.

This speed test result from M-Lab was the closest to the average of all three speed tests conducted with this service

Ookla's speed test came closest to achieving the marketed speeds for Rochester, New York Time Warner Cable Road Runner Turbo customers. The download speeds reported also include the effects of "PowerBoost," a temporary burst of additional downstream speed.

Both speed test providers rely on different regional servers to deliver potentially more accurate speed test results, less impacted by the additional “hops” traffic must take when traveling outside of a nearby region.  But considering the enormous disparity between the two tests, these real-world results may not actually represent reality.

Which test comes closest to the actual speeds available here?  Ookla.  But even then, your results may vary.  Ookla provides speed tests for both Time Warner Cable and Frontier Communications, our local phone company.  The downstream speeds reported were widely different, despite both test servers being located within a 50 mile radius.

Time Warner Cable's speed test application is also provided by Ookla. (This result comes from a server in nearby Syracuse -- the Rochester location was not working properly)

Ookla's speed test for Frontier Communications delivered dramatically different results for downstream speeds

The FCC seems to acknowledge the potential disparity in results on their disclaimer page:

Please note that the Consumer Broadband Test in its current software based form may not be an accurate representation of connection quality provided by your broadband provider. The results can be impacted by a range of factors — for instance, the test can vary based on the geographical distance of the user from the testing server, end-user hardware, network congestion, and time of day. However, this application can provide a helpful indicator in comparing consumers’ relative broadband connection quality and in understanding the performance metrics of broadband connections.

What results do you get from Broadband.gov’s provided speed tests?  Share your findings in our comment section.

Despite hundreds of consumer complaints from residents in and around Baton Rouge, the Louisiana Public Service Commission has refused to vote itself the authority to threaten AT&T with a fine up to $175,000 for poor service.

Ignoring an agreement by AT&T to adhere to minimum service standards in return for permission to acquire BellSouth Corporation in 2006, the Commission oddly decided not to enforce those conditions for the protection of AT&T customers.  On Wednesday, in a 3-2 vote, the PSC instead decided to “study” the matter and to further consider whether or not it should impose the same minimum service standards on all of Louisiana’s phone companies.

Commissioner Foster Campbell, of Bossier Parish in northern Louisiana, was stunned by the vote’s results.

“You’re telling AT&T that no matter what they do, no matter how bad their service, we’re not going to do anything?” he asked.

Campbell told his fellow Commissioners he’s worn out after taking large numbers of calls from upset residents in northern Louisiana.

Field also voted for the measure. He serves District 2 in southern-central Louisiana

This is the second time the PSC refused to fine AT&T and instead “study” the matter.  Meanwhile, customer complaints from the Baton Rouge area continue to pour into the PSC offices.

Commissioner Jimmy Field, who represents the Baton Rouge area, told AP his office had been swarmed with consumers complaining about the length of time to get service installed and outages lasting more than 24 hours. Field wanted the PSC to hang the fine over AT&T’s head again.

Complaints against AT&T in Louisiana also involve lengthy waits for repair call appointments, delays in getting new lines installed, missed appointments, and extended service outages.

In just four months last summer, the Commission confirmed 435 of the 778 complaints lodged across the state against AT&T.

Apparently if the problems don’t impact the residents you represent, there isn’t a problem.

The three commissioners that voted against the proposal to potentially fine AT&T said as much.

Skrmetta was the ringleader of the three opposed to potentially fining AT&T. He serves District 1 in east Louisiana

PSC Commissioners Eric Skrmetta, of Metairie, Lambert Boissiere III, of New Orleans, and Clyde Holloway, of Forest Hill said it wasn’t fair to single out just one company.

Skrmetta went further and said he hadn’t seen many complaints in his district, north of Lake Pontchartrain.  But he had received complaints about some of AT&T’s competitors.

Boissiere voted against the measure. He represents District 3 in central Louisiana

Boissiere, despite voting against the proposal, delivered a verbal spanking to the AT&T representative on hand.

“I don’t like your methods. I don’t like your style. I understand where my fellow commissioners are coming from,” Boissiere said.

Debbie Canale, the executive director for regulation for AT&T Louisiana, wasn’t much impressed with Boissiere’s comments.

“Our customers vote with their money and would do business with competitors, if they were unhappy with AT&T,” Canale offered.

Our Take

The three commissioners who voted against giving themselves the power to make their regulatory authority count don’t belong on any Public Service Commission.  Any member of a review board should be concerned first and foremost with the interests of the residents they represent.  The three Louisiana commissioners who voted against the proposal failed to do that.  They should be removed immediately.

The only way to impress telecommunications companies under your review is to have the power to make them pay attention to your rulings.  Stiff fines for repeated violations (and 435 in just four months is an incredible number) will make any company sit up, take notice and fix problems.

Without it, verbal scoldings are little more than lip service to a provider that can afford to be arrogant, especially in rural Louisiana where competitive choice is hardly bountiful.

Canale’s response to the Commission boils down to, “if you don’t like our service, leave.”  If only every Louisiana resident could choose another landline provider if they wanted.

Holloway, the third "no" vote, represents District 4 in western Louisiana

Ignoring a company’s problems in one region of the state virtually guarantees those problems will eventually visit another.  It is short-sighted and inexcusable to ignore hundreds of valid complaints,  condemning residents to more of the same in the future.  Voting (for a second time) to “study” the issue is an insult to residents and little more than a stall tactic.

The Commission’s suggestion it wants to impose regulatory fairness comes despite a clear agreement, less than four years old, that AT&T signed onto as part of its buyout of BellSouth.  It says AT&T will commit to certain standards of service in return for regulatory approval of the merger.  AT&T already sought to renege on that agreement in mid-2009 when it asked the Commission to suspend fines as part of their “study” about regulatory policies across the state.

So much for that hard-fought consumer protection deal.  Evidently, what AT&T agrees to one year is fodder for their lobbyists the next.  If AT&T wants changes, can consumers demand some changes of their own that assure this company will provide quality service?

As usual, AT&T’s regulatory affairs never give consumers a good deal.  For 435 residents of Louisiana, it also gave them no dial tone and a lengthy wait to get it back.

At for Commissioners Skrmetta, Boissiere and Holloway, the only question that should be on the table is whether they represent residents or AT&T Louisiana.

That is something worthy of careful study.

Louisiana's Public Service Commission is made up of five commissioners, each with their own district to represent.

A Norfolk, Virginia girl faces serious reconstructive surgery after running into an unattended cable line the city determined to be the property of Cox Cable.

Laurel Pont says her grandchildren were on their bicycles in May of 2008 when Willow got caught in a spiraling cable stretched across several lawns and driveways in an alley near her home.  The cable had been left there, unattended, for at least seven months.

Bill Pont noted, “This wasn’t just a wire, this was a coil. It was like a giant slinky laying here.”

Both of Font’s grandchildren were injured from the encounter.  The result for Font’s granddaughter was a serious facial injury.

Laurel Pont told WAVY-TV the little girl faces reconstructive surgery after she nearly severed her top lip from her face.

“She doesn’t smile. She used to have this huge smile, big toothy grin,” Pont said.

The matter is now in the courts, and that prompted a major dispute between city officials and Cox Cable, both named as defendants, over who is responsible for the cable.

“We originally sued Cox and the City of Norfolk. The City of Norfolk has filed what they call a cross claim against Cox. Cox then filed what they call a 3rd party action [against a subcontractor],” said Joseph Young, the Font’s attorney.

The Font’s turned to WAVY-TV’s 10 On Your Side in hopes of getting the matter resolved and to also expose the danger of unattended utility cables.  The Font family is also working with legislators to create a law that would limit the amount of time a hazard can remain in a neighborhood.

[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/WAVY Norfolk City – Cable Company Dispute Over Girl’s Scarring Injury 2-22-10.flv[/flv]

WAVY-TV’s ’10 On Your Side’ covers the story of a girl seriously injured because of unattended cable television wiring. (5 minutes)

Stimulus funds are helping bridge the digital divide by bringing high speed Internet to rural areas in southeastern New Mexico.

Thursday, Rep. Ben Ray Luján applauded investments in rural broadband in New Mexico made through the American Recovery and Reinvestment Act.

“Broadband technology connects communities, helps businesses grow, and provides students with the opportunity to learn new skills. As we expand broadband technology, we must ensure that our rural communities have access,” said Luján. “It is encouraging that the Recovery Act is making this important investment in broadband technology, especially in our rural and tribal communities.”

Penasco Valley Telecommunications in Artesia has been awarded $10 million in federal stimulus money to string miles of fiber optic cable to rural towns like Hondo, Mayhill and Hope.

The fiber optic cable will be a vital link for the area’s homes, businesses, schools and emergency services.

“It’s important for the rural parts to have access to the Internet, otherwise the digital divide they talk about will just get wider,” said Glenn Lovelace of Penasco Valley Telecommunications.

The project is scheduled for completion some time next year.

Since the American Recovery and Reinvestment Act of 2009 began distributing stimulus funds, it has provided roughly $250 million in funding for projects and programs in New Mexico.

The two New Mexico broadband projects that will receive funding:

Pueblo de San Ildefonso: TewaCom Broadband Initiative (TBI), Phase 1-Upper Rio Grande Valley Project; $632,225 loan and $632,225 grant. The funding will enable the Pueblo to expand service to 2,405 households.

Penasco Valley Telephone Cooperative Inc.: The Penasco Valley Telephone (PVT) Incumbent Local Exchange Carrier (ILEC) Project; $4,818,607 loan and $4,770,660 grant. The funding will provide high-speed broadband to unserved areas in the ILEC territory through fiber and wireless technology.

[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/KOB Albuquerque High-speed cable slated for southeast New Mexico 3-10-10.flv[/flv]

KOB-TV in Albuquerque reports the high speed broadband projects made possible from stimulus funding resemble the kind of public works projects that were common during the Great Depression. (2 minutes)

An administrative law judge reviewing the proposed sale of Verizon landlines to Frontier Communications has formally recommended the Illinois Commerce Commission (ICC) reject the deal.

Allowing Verizon to sell 600,000 Illinois phone lines, mostly in less populated areas of the state, would likely harm the quality of service customers receive from their landline provider according to Judge Lisa Tapia.

Tapia was given the responsibility to review the transaction’s merits before the deal moves before the ICC for final consideration.  Her 46-page report concludes that Frontier’s existing Illinois customers would likely be harmed, along with existing Verizon customers, because of the enormous debt Frontier Communications will take on as part of the deal.  Tapia writes the economic impact of the deal “will diminish Frontier’s ability to perform its duties to provide adequate, reliable, efficient, safe and least-cost public utility service.”

According to Staff witness Mr. McClerren, both Frontier Illinois operating ILECs (local phone companies) and Verizon have, in recent years, had some difficulty meeting the minimum key standards contained in Part 730. The key Part 730 standards are Toll & Assistance Operator Answer Time, Directory Assistance Operator Answer Time, Repair Office Answer Time, Business Office Answer Time, Service Installations, Out of Service for Less Than 24 Hours, and Trouble Reports.

Ms. McClerren characterized the performance of the nine Frontier Illinois operating ILECs as poor relative to the Repair Office Answer Time and Out of Service for Less Than 24 Hours standards and unacceptable relative to the Business Office Answer Time standard. Mr. McClerren concluded that given Frontier’s poorer performance relative to Verizon’s performance on Repair Office Answer Time, Business Office Answer Time, and Out of Service for Less Than 24 Hours , service quality would likely decline in the current Verizon North and Verizon South territories if the proposed reorganization is allowed to occur. Mr. McClerren further stated that because Frontier had continuously failed to satisfy the Business Office Answer Time, Staff expressed to Frontier representatives that it was prepared to initiate a hearing under Section 730.120 of the Act for the purpose of imposing penalties.

The evidence shows there is a significant risk that problems could occur if the transition is made too prematurely so as to create a potential for harm to Illinois customers. When weighed against the many risks of the Transaction, including, among others, the risk of systems integration, the purported benefits of the Transaction do not justify approval.

Of particular concern to Judge Tapia is the impact on Frontier’s finances and operating ability to take on more than 600,000 new customers in Illinois.  Despite company promises to the contrary, Tapia’s report notes we’ve been down this road before, particularly with FairPoint Communications, which went bankrupt late last year.

The evidence shows there is a significant risk that problems could occur if the transition is made too prematurely so as to create a potential for harm to Illinois customers. When weighed against the many risks of the Transaction, including, among others, the risk of systems integration, the purported benefits of the Transaction do not justify approval.

[…]

For instance, Frontier’s total Illinois access lines would be increasing from 97,000 to over 670,000 lines. Frontier would also be almost tripling its size and will be burdened with an enormous amount of approximately $3.3 billion in debt. The financial pressure along with more wirelines to handle leads the Commission to conclude that service quality will certainly be diminished. The ultimate consequences of diminished quality service will be borne by Illinois customers.

What about broadband and Frontier’s promises to expand it into rural communities across Illinois?  Judge Tapia’s report questions whether Frontier will do any better than Verizon did.

The record also does not support a finding that Frontier will be any more effective than Verizon in expanding the scope and quality of broadband services in the Illinois service areas it proposes to acquire from Verizon. To the contrary, the evidence shows that it is very unlikely that a smaller, less experienced operator would be able to support such an investment.

The findings also call attention to Frontier’s practice of paying out more in dividends to shareholders than the company actually earns from customers.  The International Brotherhood of Electrical Workers (IBEW), which has consistently argued against Verizon spinoffs, says no company can expect to succeed by paying out more than they earn just to keep a favorable stock price.  The IBEW has correctly predicted the outcome of other Verizon spinoffs, and warned the Verizon-Frontier deal is simply more of the same.

IBEW pointed to a 2007 Montana Public Service Commission (“PSC”) decision in which the PSC rejected a proposed merger and acquisition because “In normal utility operations, retained earnings provide a vital source of financial strength for capital investment and as reserves that are available during unexpected financial strains.  Regularly paying out dividends in excess of net earnings by a utility is inappropriate and risky because having insufficient reserves on hand could adversely affect the utility’s ability to provide adequate service.”

IBEW stated that the Montana PSC’s findings apply equally to Frontier. The IBEW endorsed the reasoning of the Montana PSC and reached the same conclusion about Frontier.

According to IBEW, Frontier only has two or three more years before it will have paid out all of its retained earnings to stockholders, based on its performance in the first half of 2009. IBEW also stated that two Wall Street financial analysts have independently found that Frontier’s shareholders’ equity is likely to become negative in 2012 or 2013. After that, Frontier’s dividend would have to be reduced to no more than its net income – a likely dividend cut of 60% or more. IBEW argued that without this Transaction, Frontier’s business model will fail within two or three years. IBEW asserted that Frontier does not plan to change its approach to business. Frontier still plans to pay out more to shareholders than it earns in net income and that there is no scenario where Frontier plans to pay out less in dividends than it earns in net income during the 2010 to 2014 period examined.

The report agrees with the IBEW position:

Frontier’s risky business model is a concern. The Commission agrees with IBEW that in normal utility operations, retained earnings provide a vital source of financial strength for capital investment and as reserves that are available during unexpected financial strains. Regularly paying out dividends in excess of net earnings by a utility is inappropriate and risky because having insufficient reserves on hand could adversely affect the utility’s ability to provide adequate service. Based on the record, this has been Frontier’s business practice. However, Frontier testified that it has revised its dividend policy. According to Frontier, it currently pays an annual cash dividend of $1.00 per share of Frontier common stock. Frontier after the closing of the proposed Transaction, intends to change its dividend policy to pay an annual cash dividend of $0.75 per share of Frontier common stock, reducing its dividend by 25% – from $1.00 to $0.75 per share – effective with the close of the Transaction.

The Commission does not find Frontier’s assertion credible. Specifically, that it plans to revise its dividend policy (at the discretion of it Board of Directors) because of this proposed Transaction when this has been Frontier’s approach to business for years.

Hundreds of pages of comments from consumers and other interested parties have been recorded by the ICC, many in opposition to the proposed deal.  The ICC’s next step is to accept comments about the report, which have already been forthcoming.

McCarthy

Dan McCarthy, Chief Operating Officer of Frontier Communications was among the first.

“Today’s proposed order by an administrative law judge in Illinois ignores the numerous public interest benefits outlined in the complete record developed in the Frontier/Verizon transaction. This record fully addresses the issues raised by the ALJ. We are confident that once the full Illinois Commerce Commission reviews the record, they will vote to support the transaction,” McCarthy said in a prepared statement.

“Frontier has formally committed to expand broadband to 85 percent of the households in the Verizon Illinois service areas covered by the transaction and spend in excess of $40 million to accomplish this effort,” the statement says, further noting that the company already provides DSL broadband service to 90 percent of its existing footprint in the state.

The full ICC is expected to rule by the end of April.

Among the Illinois communities impacted by the transaction:

Chatham, Divernon, Elkhart, Illiopolis, Jacksonville, Lincoln, Loami, New Berlin, Pawnee, Pleasant Plains, Sherman, Virden, Waverly and Williamsville.