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Investigation: Spectrum’s Best Discounts Go Only to Areas With Robust Competition

Spectrum customers living in areas wired for fiber optics get substantially better discounts for longer periods of time than those living in areas where anemic phone company DSL service is the only competition.

Charter Communications, like many cable operators, asks all prospective customers to enter their complete mailing address, claiming prices “vary per location.” What the company does not say is that it maintains a database of addresses where fiber-fast competition is currently available and only offers the best deals to those locations.

In Rochester, N.Y., Spectrum competitor Greenlight Networks has made headway installing fiber to the home service in select neighborhoods in the city and suburbs. As fiber service becomes available, some Spectrum customers start switching to Greenlight, which markets 100/20 Mbps service for $50/mo, 500/50 Mbps for $75/mo, or 1,000/100 Mbps for $100/mo. In response, to keep customers, Spectrum offers 24 months of reduced pricing on its internet package. But your address must match Spectrum’s database as being within a competitive service area. Otherwise, the deals will not be so good.

Stop the Cap! found dramatic differences in prices between addresses nearly across a street from one another – one wired for Greenlight Fiber, the other not.

Competitive Area (Spectrum, Frontier DSL, Greenlight fiber-to-the-home service)

Spectrum Ultra (400 Mbps): $44.99/month for 24 months (free upgrade from Standard 100 Mbps package)

All promotions last 24 months

Free Wi-Fi Service

No installation or set up fee*

Non-Competitive Area (Spectrum, Frontier DSL)

Spectrum Standard (100 Mbps): $44.99/month for 12 months (for Ultra 400 Mbps, add $25/mo)

All promotions last 12 months

Wi-Fi Service is $5/month

$49.99 professional installation fee required for Ultra 400 Mbps service*

In Greenlight service areas, Spectrum now undercuts Greenlight’s pricing by offering Spectrum Ultra 400 Mbps service for $5 less than what Greenlight charges for 100 Mbps.

“Racerbob,” a DSL Reports reader in Webster, N.Y., discovered the same “enhanced offers” as an ex-Spectrum customer. He switched to Greenlight three months ago. He discovered if he added a Spectrum cable TV package, the price for 400 Mbps Ultra internet service dropped even lower, to $39.99 a month for two years.

In all, a sample package he assembled delivered dramatic savings, but only if a robust competitor like Greenlight was also offering service to his address:

Addresses used for comparison were in zip code 14618, with verified access to Greenlight at a street address to represent the “competitive” service area and verification Greenlight was not available at the address used for “non-competitive” service area. *-Although a setup fee was found on the final checkout page in both competitive and non-competitive service areas, it was only actually charged in non-competitive service areas during our investigation.

Verizon Starts Taking Orders Thursday for 5G Home Internet in Houston, Indianapolis, LA and Sacramento

Verizon 5G Home will begin accepting new customer orders for its in-home wireless broadband replacement as of this Thursday, Sept. 13, with a scheduled service launch date of Oct. 1.

The new high-speed wireless service will be available in select parts of Houston, Indianapolis, Los Angeles, and Sacramento.

Verizon CEO Hans Vestberg is calling the service part of Verizon’s 5G Ultra Wideband network. Initial reports indicate speed will range between 300-1,000 Mbps and existing Verizon Wireless customers will get a $20 price break on service — $50 a month instead of $70 for non-Verizon Wireless customers. We are still waiting word on any data caps or speed throttle information. Verizon informs Stop the Cap! there are no data caps or speed throttles. Service is effectively unlimited, unless hidden terms and conditions introduce unpublished limits.

Interested customers can determine their eligibility starting at 8 a.m. ET on Thursday from the Firston5G website. If you are not eligible initially, you can add your email address to be notified when service is available in your area.

Early adopters will be awarded with a series of goodies:

  • Free installation (a big deal, since it could cost as much as $200 later. An external antenna is required, as well as in-home wiring and equipment.)
  • 90 days of free service (a good idea, considering there may be bugs to work out)
  • 90 days of free YouTube TV (a welcome gift for cord-cutters)
  • Free Chromecast or Apple TV 4K (a common sign up enticement with streaming cable-TV replacements)
  • Priority access to buy forthcoming line of 5G-capable mobile devices

Customers in the first four launch cities will be using equipment built around a draft standard of 5G, as the final release version is still forthcoming. Verizon is holding off on additional expansion of 5G services until the final 5G standard is released, and promises early adopters will receive upgraded technology when that happens.

Verizon is clearly providing a greater-than-average number of enticements for early adopters, undoubtedly to placate them if and when service anomalies and disruptions occur. Although Verizon has done limited beta testing of its 5G service, it is very likely the 5G network will get its first real shakeout with paying customers. Unanticipated challenges are likely to range from coverage and speed issues, unexpected interference, network traffic loading, the robustness of Verizon’s small cell network, and how well outside reception equipment will perform in different weather conditions, particularly heavy rain and snow. With a large number of freebies, and no charges for 90 days, customers are likely to be more forgiving of problems, at least initially.

Chromecast

Verizon’s 5G network depends on millimeter wave spectrum, which means it will be capable of providing very high-speed service with greater network capacity than traditional 4G LTE wireless networks. But Verizon will have to bring 5G antennas much closer to subscribers’ homes, because millimeter wave frequencies do not travel very far.

Verizon will combine a fiber backhaul network with small cell antennas placed on top of utility and light poles to reach customers. That explains why Verizon’s initial 5G deployment is unlikely to cover every customer inside city limits. There are substantial deployment costs and installation issues relating to small cells and the optical fiber network required to connect each small cell.

Verizon’s existing FiOS network areas will offer an easier path to introduce service, but where Verizon does not offer its fiber to the home service, it will need to bring fiber optic cables deep into neighborhoods.

AT&T sees a similar challenge to 5G and is openly questioning how useful wireless 5G can be for urban/suburban broadband service, considering it can simply extend fiber optic service to those homes and businesses instead, without a costly 5G small cell deployment.

Verizon introduces 5G wireless in-home broadband in four U.S. cities and starts taking new customer orders on Thursday. (1:00)

Article updated at 6:28pm ET with information about data caps and speed throttles provided by Verizon.

Altice Launches Optimum Fiber on Long Island; Gigabit Service $79.99/Month

Phillip Dampier September 11, 2018 Altice USA, Broadband Speed, Competition, Consumer News No Comments

Altice USA this week launched symmetrical gigabit broadband over its new fiber-to-the-home network in parts of Long Island.

The cable company, which acquired Cablevision a few years ago, is gradually mothballing its part-copper wire network and going all-fiber across its footprint in New York, New Jersey, and Connecticut. The fiber buildout will allow Altice to increase internet speeds and have more flexibility providing television, broadband, and phone service.

Where the fiber network has been switched on, customers are being offered 940/940 Mbps (near-gigabit) internet-only service at a price of $79.99 a month. Stop the Cap! has confirmed with our readers that parts of Central Islip now have gigabit fiber service available.

“Altice USA is focused on offering the best network and connectivity experience, and the activation of our full-fiber network with smart Wi-Fi, the most advanced of its kind in the nation, demonstrates our commitment to creating converged customer experiences,” said Hakim Boubazine, Altice USA co-president and chief operating officer. “Delivering our symmetrical Altice Gigabit fiber service is just the start as we continue to scale our fiber network to bring our customers up to 10 gigabit internet speeds to support the explosive growth of data usage while laying the groundwork for the future of the connected universe.”

The company is keeping its precise fiber rollout schedule a closely guarded secret, as it competes with Verizon FiOS across much of its service area. Because the fiber upgrade project will take five years to complete, existing customers still served by Optimum’s older HFC network will not have to wait to get speed increases thanks to DOCSIS 3.0. The company is introducing 400 Mbps speeds this year with gigabit service anticipated in early 2019. Altice will not deploy DOCSIS 3.1, preferring fiber to the home service as a better choice.

Only Co-Ops Can Fix West Virginia’s Dismal Broadband Desert

West Virginia still ranks 43rd in the nation for having the worst broadband availability, despite claims from providers like Frontier Communications that rural broadband expansion has been ongoing and have cost the company tens of millions of dollars.

The state’s two senators are working to get more attention on broadband issues in one of the country’s most rural and mountainous states, despite the fact the free market is not likely to solve West Virginia’s broadband woes.

“Broadband high-speed is tremendously needed,” said Senator Joe Manchin (D-W.V.). “We have over 18 to 20 percent of West Virginians not connected whatsoever.”

“I’m working everyday on this in a bipartisan way,” said Senator Shelley Moore Capito (R-W.V.). “It’s essential for our economy, our health care, our education. All of the things that are in a new economy.”

The federal government has distributed broadband grant funds to help address rural broadband unavailability, but after a decade of assistance, rural residents often remain without service. Charlie Dennie believes taking charge of broadband issues on the local level is the only way broadband problems will finally be resolved. Dennie is a big believer in public broadband co-ops, where local communities manage their own internet access affairs without waiting around for big phone and cable companies or the federal government. Dennie runs a business in the state that depends on broadband, and if he waited for incumbent providers like Frontier to deliver 21st century broadband service, his business is likely to go out of business.

That prompted him to write this commentary:

Dennie

Much of West Virginia is a broadband desert, and we have been foolishly pleading with the major carriers for water.

Recently, we seem to be coming to terms with reality. The reality is, they’re not coming, broadband is not a utility. The international, modern-day, robber barons dominating internet delivery have no obligation or incentive to meet our needs. Their aggressive return on investment models can’t be met in the small markets. Still, they attempt to roadblock appropriately scaled providers from entering the market and meeting our needs.

Since internet and cable TV are not utilities, the carriers are free to pick the low hanging fruit of our more densely populated communities and move on, leaving smaller markets stranded on the wrong side of the digital divide. The major carriers’ only obligations or concerns are with Wall Street. Main Street and all that term implies is not a consideration.

If we’re going to see our desert watered and blooming, we’ll be digging our own wells, meaning, building our own networks. The incumbent telephone companies and the cable TV providers bristle at this idea. The major providers spent over $66 million last year to lobby the states and Congress. Twenty-one states have now roadblocked or outlawed municipal or community-owned fiber. Municipal or community owned fiber is a serious threat to the status quo.

In years past, no one would have been surprised if West Virginia lawmakers had sat on their hands and done nothing or, enacted more protectionist legislation. That didn’t happen with this Legislature. Paraphrasing Bob Dylan, “The times they are a-changing.”

During the 2017 legislative session, I witnessed the boldest and most fearless leadership in my memory. The House of Delegates Judiciary Committee led by its chairman, Del. John Shott (R-Mercer), and Vice-Chairman, Del. Roger Hanshaw (R-Clay), introduced HB-3093. It was a sweeping piece of legislation sending a strong message to the incumbent internet providers to provide better service or make room for someone who will.

Carmichael

HB-3093 created the West Virginia Broadband Enhancement Council, streamlined the process for attaching fiber to utility poles, cleared the way for new construction methods, authorized the West Virginia Economic Development Authority to make loan guarantees for broadband construction and authorized the creation of cooperative associations for internet. As a proponent of the legislation, I requested a public hearing. Gathering in the House chamber only hours before the vote, industry lobbyists voiced strenuous objections. The strongest objections to the bill were the provisions streamlining attachments to utility poles and authorizing cooperative associations to provide broadband.

HB-3093 passed the house with 97 votes. I spoke to Senate President Mitch Carmichael (R-Jackson), just before the bill was introduced in the Senate. Sen. Carmichael had the power to keep the bill from advancing and Frontier, his employer at the time, was out in force to stop it. Before the bill went to the floor Sen. Carmichael said to me, “They’ll fire me, but I have to do what I think is right.” HB-3093 passed the Senate with Sen. Mike Romano (D-Harrison), casting the single, dissenting vote. A few days later, Frontier Communications fired Sen. Carmichael. Today, there are some who want to “Ditch Mitch,” but I will always remember the day he was called to choose between his economic self-interest and what was best for his constituency. Mitch fell on his sword. He did what he thought was right.

It’s important to know where you have been to understand where you are going, and this is only a chapter of our emerging broadband story. Changing the rules that protect the powerful to move us forward requires courageous leadership. If you believe broadband isn’t a political issue, I can give you 66 million reasons why you couldn’t be more wrong.

Ironically, community owned networks will be good for the current providers. The community owned networks provide the “last mile” to the home or business that enables delivery of high-speed internet. The community networks still need the content provided by current carriers. The communities will have choices and can negotiate with providers. Everybody wins.

I’ll have more for you later. Meanwhile, visit the broadband council at https://broadband.wv.gov. Take the speed test, then look under the “Resources Tab” about co-ops. Ignore the naysayers. I’ll show you how co-ops will change everything.

Mass. Taxpayers Give Comcast $4 Million to Expand Monopoly Broadband Service

State and local officials gather to welcome Comcast’s state-funded service expansion in western Massachusetts. (From left to right: MBI chairman Peter Larkin; Carolyn Kirk, deputy secretary of the Executive Office of Housing and Economic Development; Michael Parker, senior vice president for Comcast’s Western New England region; Lt. Gov. Karyn Polito; Kevin Hart, former chair of the Montague Broadband Committee; and Rep. Stephen Kulik, D-Worthington.) (Image: MBI )

Two years after Republican Massachusetts Gov. Charlie Baker imposed a state-mandated “pause” on WiredWest, a collaborative, multi-community, publicly owned fiber to the home broadband network for western Massachusetts, Comcast is celebrating the introduction of expanded service in the towns of Buckland, Chester, Conway, Hardwick, Huntington, Montague, Northfield, Pelham and Shelburne, made possible with a $4 million taxpayer-funded grant to the nation’s largest cable operator.

While state officials continually questioned the economics of WiredWest, which by that time enrolled more than 7,000 eager would-be customers with $49 deposits, Comcast repeatedly declared it was “uneconomic” to provide broadband service to most rural western Massachusetts communities, at least until state officials paid the cable giant millions of dollars to reach 1,089 previously unserved homes and businesses in the nine towns, effectively giving Comcast a broadband monopoly.

“We were pleased to work with Comcast, who met the two-year timeline we set to deliver critical 21st-century broadband connections to more homes and businesses,” said Lt. Gov. Karyn Polito in a press release this week. She called the project “a great example of a public-private partnership” that would help resolve rural Massachusetts broadband problems.

WiredWest could not have met Polito’s two-year timeline, primarily because the collaborative has been blocked and ambushed repeatedly after Democratic Gov. Deval Patrick left office. State officials in Boston and the Massachusetts Broadband Institute (MBI), responsible for funding broadband initiatives, began a campaign of fear, uncertainty, and doubt about the project shortly after Gov. Baker took office, culminating in recommendations from then-MBI director Eric Nakajima imploring towns not to sign agreements with WiredWest, and eventually withholding critical funding from the broadband cooperative, questioning its governance and operating model.

It soon became clear Gov. Baker preferred an industry solution to the rural broadband problem, which caused broadband advocate Susan Crawford to slam the decision in early 2017.

“This is the story of a dramatic failure of imagination and vision at the state level: Governor Charlie Baker’s apparent insistence that Massachusetts relegate small towns to second-rate, high-priced, monopoly-controlled (and unregulated) communications capacity,” Crawford wrote. “It’s a slow-rolling tragedy that will blight western Massachusetts for generations.”

A divide and conquer campaign to peel off communities from the WiredWest project has been underway for years. Earlier this year, MBI dangled $3.1 million in grants available exclusively to Charter Communications to build out its network in several towns in the region. When asked if those taxpayer dollars would be available to publicly owned broadband projects like WiredWest, Peter Larkin, MBI’s current board chairman, responded “no.”

Despite the roadblocks, many of the communities staying loyal to the WiredWest concept have hired Westfield Gas & Electric’s ‘Whip City Fiber’ division to help design and construct their own fiber to the home networks, which will be superior to what Charter or Comcast plans for the region.

For exasperated residents and businesses who have waited more than four years for broadband, the politics and constant delays have become secondary issues to getting broadband… from somewhere. That may explain why Kevin Hart, who frequently objected to Comcast’s proposal to build an inferior copper-fiber network while chairing the Montague Broadband Committee, suddenly switched sides and praised the Comcast project this week for its timely introduction of broadband service.

In contrast, Montague Broadband Committee member Robert Steinberg in 2016 called Comcast’s cash infusion from taxpayers “corporate welfare.”

WWLP in Springfield reports several towns are getting expanded cable and broadband service from Comcast. (1:21)

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