AT&T is rolling out its gigabit fiber service in Cupertino, Calif., but if you want it you will pay $40 a month more than those who live in cities where Google Fiber offers competition.

AT&T U-verse with GigaPower launched Monday in “select areas,” which traditionally means it won’t be immediately available to most customers. The San Jose Mercury News reports AT&T admitted the service will be available only to a few thousand homes for now in the city and refused to give a percentage of how many of Cupertino’s 20,000 homes would ultimately be able to get the service. AT&T is under no obligation to provide the service and can cherry-pick neighborhoods and skip past government buildings, schools, and hospitals. AT&T won’t give any commitments to the city on its gigabit service.

The company justifies charging $110 a month for the same service it charges $70 for in Austin, Kansas City and North Carolina because it can afford to test higher price points where competitors won’t steal their business.

“We are trying to understand how different markets respond,” Eric Boyer, senior vice president of AT&T U-verse told the Wall Street Journal.

AT&T doesn’t treat the home town of their corporate headquarters much better. In Dallas, Gigapower costs $110, down $10 from its initial price. As Time Warner Cable and Google ponder their own broadband upgrades in North Carolina, AT&T suddenly cut the price of GigaPower on Mar. 17 from $120 to $70 in Winston-Salem and Raleigh-Durham.

AT&T customers who do not want the company to monitor their browsing activities have to pay $29 more for privacy protection, which opts them out of AT&T’s tracking systems. Despite the high-speed and price, AT&T still insists on usage caps for its most premium broadband offering. Customers can use up to 1TB per month, after which AT&T slaps overlimit fees of $10 for each 50GB customers use over their limit. Its primary competitors, including Google, Time Warner Cable, Verizon and Charter do not have usage caps. Boyer says he knows of no customer that has exceeded the 1,000GB usage cap. But that also brings the question if no customer has exceeded the cap, why have one?

More importantly, Boyer added the company isn’t yet offering services that would be exempt from the cap but might do so in the future. “We are open to a whole host of options,” he said. Critics would likely call that an end run around Net Neutrality.

Competition is the significant driver pushing AT&T and other providers to accelerate broadband upgrades and lower prices for higher speed tiers. In markets where cable operators face DSL competition from the phone companies, speeds are lower and prices are higher. Where an incumbent announces major upgrades like GigaPower or Time Warner Cable Maxx, competitors are forced to respond with upgrades of their own.

That leaves cities served by independent telephone companies like Frontier, CenturyLink, and Windstream at a distinct disadvantage because none of those companies have announced sweeping broadband speed increases and have relied instead on acquired fiber networks (Frontier FiOS and U-verse), limited fiber rollouts (CenturyLink) and incremental speed increases using VDSL and bonded DSL (all three). Frontier claims its customers are not interested in faster broadband speeds.

The northeastern United States has seen only one major market disruptor — Verizon FiOS, and it has shelved future expansion. Dominant cable provider Time Warner Cable has not seen its market share hurt much by limited DSL speeds offered in many areas by Verizon, Frontier, and FairPoint Communications. It continues to offer a maximum of 50/5Mbps broadband in upstate New York, Maine, and Massachusetts.

Phil Kerpen with Glenn Beck in 2009

A conservative pro-business group allied with the telecom industry run by a former top aide for the Koch Brothers is in the middle of a growing scandal over a flood of allegedly phony, identically worded messages opposing Net Neutrality sent to members of Congress.

Politico today reported Phil Kerpen’s group – American Commitment – claimed it had easily found a half-million Americans opposed to the Obama Administration’s support for Net Neutrality and helped funnel 1.6 million messages from them to members of the House and Senate.

But suspicious members of Congress quickly determined that many of the messages originated from constituents who had no memory of sending them and a firm hired to help process incoming e-mail for members of Congress warned many of the messages originated from questionable email addresses and “a vast majority of the emails do not appear to have a valid in-district address.”

The content of many of the emails was exactly the same, with a variant paragraph inserted in the middle opposing Net Neutrality for different reasons, all urging Congress to defund the Federal Communications Commission to prevent the agency from enforcing its new Net Neutrality policies.

When Rep. Jackie Speier (D-Calif.) noticed the majority of the anti Net Neutrality messages came from constituents that have never written her before, she quickly reached out to the senders to respond to their concerns. A few replied they had never signed up to send emails criticizing Net Neutrality. Lockheed Martin, which manages many of the email messages resulting from constituents clicking the “Contact Me” button on lawmakers’ websites, notified Congress they were suspicious about the authenticity of the emails as well, and had configured a filter to begin weeding them out.

American Commitment, which maintains close ties to the Koch Brothers, characterizes Net Neutrality as an “Obama Internet Takeover.”

“The idea that an outside group could use consumer data to impersonate constituents suggests an attempt to hijack the important feedback members of Congress need to truly represent their districts,” Speier said in a statement. “This is identity theft, but instead of impersonating for financial gain, the originators of this theft are striking at the heart of our representative democracy.”

Kerpen maintains close ties to several Koch Brother-funded, pro-corporate astroturf groups. His former work opposing Net Neutrality with Americans for Prosperity, almost entirely funded by Koch Industries, mirrors his continued opposition today.

As early as 2009, Stop the Cap! tangled with Kerpen and Americans for Prosperity after Kerpen appeared on Glenn Beck’s program attacking Net Neutrality. Kerpen nodded in agreement as Beck offered that Net Neutrality represented a joint Marxist and Maoist plot to take over the Internet on behalf of the Obama Administration. Stop the Cap! has repeatedly asked Americans for Prosperity to disclose their donor list, but Kerpen has consistently refused, even after the Sunlight Foundation detailed ties the group maintains with other Koch efforts.

Kerpen’s group pre-wrote most of the letters it sent to the FCC. A writer was offered a variant where an extra paragraph would appear at the point indicated expressing one of several views across the political spectrum. Those were pre-written as well.

In his new position at American Commitment, Kerpen’s group generated the majority of responses received during the FCC’s second round accepting comments about Net Neutrality. To evade Congress’ ability to sniff out a form letter writing campaign, American Commitment went over the top, designing its form letters with at least 30 different comment variants, many offering wildly different reasons why Net Neutrality was bad for America. When the final letter was created, it appeared original until groups like the Sunlight Foundation discovered nearly exact copies of the different variants ostensibly coming from different writers.

For example, Joe Smith could oppose Net Neutrality because it violates personal freedom — a common conservative view and Marsha Smith could oppose it because it would hurt small co-ops and municipal providers — likely a left-leaning view, but both letters were pre-written by Kerpen’s group. One telltale sign of Kerpen’s involvement is his relentless personal loathing of Robert McChesney, who helped found the consumer group Free Press. Kerpen can’t help himself routinely, almost reflexively accusing McChesney of being a Marxist, extreme leftist, or outright communist. His personal views show up in one of American Commitment’s letter variants:

The ideological leader of the angry liberals calling for you to reduce the Internet to a public utility is Robert McChesney, the avowed Marxist founder of the socialist group Free Press. In an interview with SocialistProject.ca, McChesney said: “What we want to have in the U.S. and in every society is an Internet that is not private property, but a public utility…At the moment, the battle over network neutrality is not to completely eliminate the telephone and cable companies. We are not at that point yet. But the ultimate goal is to get rid of the media capitalists in the phone and cable companies and to divest them from control.” In a country of over 300 million people, even an extremist like McChesney can find, perhaps, millions of followers. But you should know better than to listen to them.

Politico asked Kerpen about the matter and he denied impersonating the alleged letter writers and suggested some other group borrowed American Commitment’s idea and potentially ran too far with it.

“We’re aware that other groups used identical language in their campaigns and we cannot speak to those efforts,” Kerpen said. “We verified our data through postal address verification and follow up phone calls. We stand by our campaign and Congress should work to stop President [Barack] Obama’s plan to regulate the Internet at the request of these constituents.”

Kerpen also continued his refusal to disclose what corporations are paying to keep the lights on at American Commitment. No matter, the Sunlight Foundation triangulated donor data and discovered much of the money comes from Koch-affiliated political organizations. Another significant donor is the National Cable & Telecommunications Association, the nation’s biggest cable lobbyist and fierce Net Neutrality opponent.

The national map of available white space channels show plenty are available in rural areas, but designing an urban network might prove challenging because open channels often just don’t exist. In a medium-sized city like Rochester, only 11 UHF channels are available, a number likely to dwindle to close to zero if the FCC successfully reallocates much of the UHF band to wireless providers like AT&T and Verizon.

A dozen homes in the middle of the Adirondacks now have access to Internet speeds far faster than what Verizon and Frontier DSL can deliver and without the usage caps or speed throttling common with satellite Internet access.

Thurman, N.Y.’s public-private “white space” wireless network survived months of political wrangling, debate, and even intentional signal interference created by someone intent on disrupting the project. For a community that some maps depict with zero residents, the 1,200 people of Thurman are now more known than ever, winning national attention for one of the first next generation rural wireless networks to use unused space on the UHF dial to provide Internet access.

A dozen homes are the first to receive the service, with nearly 80 more on the way during phase one of the project. A $200,000 New York state broadband grant helped get the project off the ground and defray the cost of equipment installed in each subscriber’s home. But the initial cost isn’t cheap, even with the grant. New customers pay an upfront equipment fee of $292 for a receiver that costs the project up to $600. The monthly service charge is $50. Despite the price, it’s worth it to a lot of subscribers.

“The white space service is truly amazing,” said John Schroeter of Kenyontown, noting he uses the Internet for genealogical research and relied on dial-up access for the last 15 years. “I can go from one web page to another without waiting forever.”

Schroeter told Denton Publications that web pages often failed to load with dial-up, even after hours of waiting. Now he can manage to complete days of research in about an hour, without having to drive 15 miles to the nearest Wi-Fi hotspot.

Despite the fact Verizon and Frontier Communications both run their own fiber cables on the same utility poles in the region, at least 75% of the 400 homes in Thurman have no access to broadband Internet, living out of reach of even basic DSL. Many end up in the parking lot of the town hall to use Wi-Fi. Others depend on prohibitively expensive satellite access. None of the existing options were ideal. Sheila Flanagan, proprietor of Nettle Meadow Farm complained it took her hours to prepare even a small number of shipping labels to send her cheese products across the country with UPS. Speeds were so slow, she was forced to drop Williams-Sonoma as a client.

The concept of white space wireless Internet access has already taken hold in Europe but has dragged in the United States as existing UHF television stations, wireless carriers, wireless microphone manufacturers and others who use the same frequencies white space data services also depend on defend their turf. Since white space services are unlicensed and intended for two-way communications, fears that Internet users would degrade wireless microphones or TV reception meant special care had to be taken to lower the potential for interference.

Since rural areas lack a crowded television dial, are often outside of the coverage areas of wireless carriers, and are unlikely to host many wireless mics, white space broadband would seem like the natural solution.

The project in Thurman faced a number of obstacles to overcome anyway. There were philosophical objections from tea party conservatives who objected to tax dollars paying for the “luxury” of Internet access when satellite service is available. Some residents wanted a fiber to the home solution, one that was likely financially out of reach for the small community. Still others wanted the money spent on a fiber link between the town and Time Warner Cable, that might then be enticed to wire homes in the rural community. In the end, the community decided to go ahead with an advanced wireless network, citing a number of factors familiar to many living in rural areas:

1. Since the town is located entirely within the Adirondack Park, there are prohibitions on placing communications towers on nearby peaks or other high spots that could spoil the view;
2. The heavily forested and mountainous area made a traditional Wireless ISP project difficult because those networks need line of sight communications. White space wireless signals easily penetrate through trees and can stay intact across hilly terrain;
3. Although not as bandwidth capable as fiber optics, white space networks are capable of delivering 10Mbps broadband per UHF channel. Most networks bond multiple UHF channels together to support even faster speeds and expand capacity;
4. The chances of creating interference for other spectrum users was low in Thurman, which is a four-hour drive from New York and far enough north of Albany to avoid interfering with signals from the state capital. Even wireless carriers hug their cell towers along I-87, a respectable distance away;
5. The network has redundant backhaul access to fiber from both Verizon and Frontier, neither of which show the slightest interest in expanding services into the community on their own;
6. The grant was limited in scope and white space broadband qualified so it proved the most economical choice for a community that was no stranger to fights over money, engaging in political battles over issues like the cost of building a salt shed and auditing the on-hand count of trash bags.

The Thurman white space broadband project hides base station antennas in the tree canopy.

Tests provided the project managers with an idea where to place needed wireless antennas, often hidden within tree canopies. But at least one disgruntled resident made a point of creating intentional interference on the channels the project managers were testing, committing a federal offense along the way. That was quickly overcome and the equipment has been placed and will soon be joined by installations in nearby neighborhoods, broadening the reach of the service.

Recent advancements in white space technology have also allowed speed and capacity to improve dramatically. Equipment now transmits its exact GPS-identified location to a national database which sends back an authorized list of “white space” channels each transmitter can use to provide the service. If a new licensed broadcaster takes to the airwaves, a database update will lock out that channel in the area, preventing interference.

Although exact speed data was not available at press time, Sally Feihel demonstrated she could successfully stream an episode of a classic Andy Griffith Show on her iPod at the same time a videoconference was underway and someone else was downloading a movie, all without skipping a beat. In fact, there is so much speed and capacity built into the system, its managers say speed throttles and usage caps are completely unnecessary.

Most users agreed the wireless network far outpaced satellite and DSL and some believed it was even faster than Time Warner Cable Internet access they experienced elsewhere. (Time Warner Cable doesn’t come near the community today.)

Constructing the network only took several months, but the politics that often surrounds public-private initiatives and the need for grant funding in income-challenged rural America can tie up projects much longer than that. The need for decent and affordable Internet access often will cross party lines, especially in rural communities.

New York’s state broadband expansion fund could help expand similar projects to other bypassed areas of the state. That investment may actually save taxpayers from paying high broadband bills indefinitely.

Residents are eagerly waiting for the next expansion to begin down Valley, Garnet Lake and Glen-Athol Roads. Moving beyond that may take more grant funding.

“White space is saving us $90 per month, and it’s far faster than satellite ever was,” another resident said.

[flv]http://www.phillipdampier.com/video/MetroFocus A New way to Bring Broadband to Rural Towns in Upstate New York 2014.mp4[/flv]

MetroFocus showed the initial planning and testing phases of Thurman’s new white space wireless network, including interviews with town officials and a tour of the community. (4:23)

[flv]http://www.phillipdampier.com/video/Dynamic Spectrum in Action How TV White Space Devices Work.mp4[/flv]

TV white space wireless broadband networks are designed to avoid interference with other licensed spectrum users. See how the technology works in this short video. (2:27)

Charter Communications today officially announced it will acquire control of Bright House Networks in a $10.4 billion deal the two companies are calling a “partnership.”

Widely anticipated, the deal will help Charter in its quest to become the second largest cable operator in the country, up from fourth place.

Bright House is the sixth largest cable operator, serving almost two million video customers in central Florida including Orlando and Tampa Bay, as well as Alabama, Indiana, Michigan, and California.

The deal will establish a partnership between Charter and Bright House’s current owner, Advance/Newhouse. But nobody will doubt who is in charge. Charter will own 73.7% of the venture, leaving the Newhouse family with a minority share of 26.3%. Bright House shareholders will receive shares of New Charter stock.

The deal is partly contingent on Time Warner Cable, which has a right to acquire Bright House for itself as part of a long-standing partnership between the two cable companies on programming and technology matters. But such an acquisition now seems remote, considering Time Warner Cable remains tied up in its year-long effort to be acquired by Comcast. An even larger Time Warner Cable would further complicate that transaction in Washington, where regulators are clearly concerned about supersizing Comcast. Since some regulators count Bright House customers as de facto Time Warner Cable customers, having Bright House acquired by Charter would seem to reduce Comcast’s influence over American broadband and cable television by cutting its combined market share from 29 to 27 million subscribers.

The Charter Sucks website could soon be getting more traffic.

But Charter is also dependent on the Comcast deal closing, because that transaction delivers Charter another 2.5 million Time Warner and Comcast castoffs that will be sold service under the brand GreatLand Connections. The combination of those subscribers and Bright House will make Charter the second largest cable operator in the country.

Unfortunately for customers, Charter isn’t even close to second place in customer satisfaction or service. Beyond the very active Charter Sucks website, every consumer satisfaction measurement firm places Charter substantially below average in service, satisfaction, and pricing. Bright House scored on the high side.

“From the frying pan into the fire,” lamented Sam Pama, a former Bright House customer turned FiOS fan in Tampa. “First Frontier bought Verizon FiOS in Florida and now Charter is buying Bright House. Both treat their customers like crap.”

One piece of good news: Charter quietly shelved their usage caps months ago and Frontier has only toyed with them in the past, taking significant heat from Stop the Cap! before backing off. Neither are expected to slap usage limits or usage billing on customers in the foreseeable future.

After Comcast customer Conal O’Rourke spent more than a year trying to get the cable company to stop overbilling him, Comcast allegedly got their revenge by having O’Rourke fired from his job at PriceWaterhouseCoopers, which just so happened to count Comcast as an important client.

O’Rourke sued Comcast after the company allegedly complained about O’Rourke’s persistence to his boss at the accounting firm. After months of discovery motions surrounding the lawsuit, O’Rourke’s legal team has amended their complaint to add a seventh cause of action — invasion of privacy — after Comcast’s damage control efforts exposed private conversations between O’Rourke and Comcast customer service representatives.

The Consumerist was the first to tell O’Rourke’s story, and it has now learned Comcast allegedly recorded and used O’Rourke’s private conversations with the cable company to further disparage O’Rourke to protect its own image. His attorneys are now asking for additional damages, up from the original $1 million to more than $5 million:

After Conal filed suit, Comcast released a statement to Consumerist and others, explaining that, “As part of this investigation, we have listened to recorded calls between Mr. O’Rourke and our customer service representatives and his treatment of them and his language is totally unspeakable.”

This statement and description of the customer service calls goes too far, says Conal in the revised lawsuit.

“The recorded customer service telephone calls between Mr. O’Rourke and Comcast are private, and are not the subjects of legitimate public concern,” reads the amended complaint. “Comcast’s public disclosure of the existence and nature of Mr. O’Rourke’s private calls to Comcast customer service – which disclosure falsely portrays Mr. O’Rourke as an individual lacking in decency, ethics and integrity – is offensive and objectionable to a reasonable person of ordinary sensibilities.”

The lawsuit claims that “Comcast’s conduct towards Mr. O’Rourke was wanton, willful and intentional, and committed with malicious intent.”

Comcast apparently intends to drag the case out in court, potentially for years.

“That’s how long hard-fought federal lawsuits are taking in this district these days, and Comcast will be opposing it hard,” Conal’s lawyer Harmeet K. Dhillon told Ars Technica. “I can’t say on the record why it didn’t settle, but you can see from Comcast’s public statements that they want to be ‘vindicated.’”