Cable One has announced it will invest $60 million in network upgrades across 42 cable systems in its mostly rural footprint to enhance reliability and deliver faster Internet service.

The cable operator, owned by the Washington Post, has been criticized for outdated infrastructure and poor service, particularly in Mississippi.

”We’re committed to delivering the best possible experience to our customers,” said Cable One CEO Tom Might. “We’re confident that this investment will ensure that our customers will receive superior service in the speed, reliability, and the overall performance of our services.”

The two-year upgrade project aims to replace amplifiers, split broadband customers who share a backbone connection into smaller groups, replace aging coaxial cable and improve the cable company’s fiber optic backbone.

The upgrade might allow the company to consider relaxing its draconian usage cap and speed throttle policies, which force customers to choose between an uncapped 5Mbps connection (with a speed throttle for those using more than 3GB per day) or a 50/2Mbps connection with caps as low as 50GB per month (overlimit fees: $0.50-1.00/each extra gigabyte.)

Cable One now offers two levels of Internet service: an uncapped 5Mbps plan for $50 a month and a 50/2Mbps plan for $50 a month with a 50-100GB monthly usage cap, depending on the package bundle. Usage is measured between 8am-12 midnight. Users on the uncapped 5Mbps plan are subject to speed throttling if they exceed 3GB of usage per day.

Austin gets a horn of plenty with free Time Warner Cable Wi-Fi because Google is coming to town.

As Time Warner Cable faces forthcoming competition from Google Fiber in Austin, the company is responding with the construction of a free Wi-Fi network for its broadband customers to protect its business.

TWC WiFi is available now from a limited number of hotspots, but hundreds more will become available across Austin in 2013 as the company builds out its wireless network.

Time Warner Cable customers with Standard Internet or above qualify for free access, as do Business Class customers. Others can trial the service for free and then buy access for $2.95 an hour.

“Increasingly, our Austin customers want to take their high-speed Internet with them out of the home and on-the-go,” said Area Vice President Kathy Brabson. “The TWC WiFi network we are building for Austin will allow our customers to greatly maximize their TWC Internet subscription at no additional charge.”

It is no coincidence Time Warner Cable has selected Austin for a Wi-Fi rollout. The Wi-Fi service was specifically intended to provide more value for Time Warner Cable customers in competitive markets to keep them from switching to a competitor.

It represents a sea change for a cable company that in 2009 targeted Austin for an Internet Overcharging scheme that would have slapped a usage limit and consumption billing on the area’s broadband customers. With the advent of strong competition from Google, Time Warner Cable is giving customers something instead of taking things away.

Austin customers can download the free TWC WiFi Finder app available in Google Play and the Apple App Store or visit www.twc.com/wificoverage to view the hotspot coverage map as the wireless network grows. Once authenticated, customers can also access Wi-Fi hotspots in other cities including New York City, Los Angeles, Chicago, Philadelphia, Atlanta, Baltimore, Boston, Washington, D.C., San Francisco, Orlando, Tampa, Kansas City, Charlotte and more.

The German Internet is functionally broken.

Deutsche Telekom, the largest telecommunications company in Germany, has announced it will introduce a brazen Internet Overcharging scheme for customers signing up for its broadband DSL service, including a throttle that reduces speeds to just 384kbps after as little as 75GB of monthly broadband usage.

For now, only new Telekom Deutschland customers signing up after May 1 will be affected by the usage limits. Customers will be offered the option of upgrading their Call & Surf package to get a larger usage allowance, although many parts of Germany are still reliant on DSL and its variants that cannot deliver the advertised speeds that go with the larger allowances:

• Up to 16Mbps: 75GB per month
• Up to 50Mbps: 200GB per month
• Up to 100Mbps: 300GB per month
• Up to 200Mbps: 400GB per month

“We want to offer customers the best network in the future and we will continue to invest billions to make that happen,” said Michael Hagspihl, marketing director of Telekom Deutschland. “However we cannot continue to sustain higher usage demand while lowering our prices. Customers with very high data volumes will have to pay more in the future.”

Company officials argue German broadband usage demands are accelerating at an ever-increasing rate, putting strain on the company’s network resources.

But critics question if usage demands are the root of the problem, why is DT exempting itself and its “preferred partners” from the data cap, including certain services that offer very high bandwidth video?

The Net Neutrality activist group Netzpolitik.org says DT is “massively violating Net Neutrality while the federal government looks away dreaming that the free market will solve the problem somehow.”

The group points out DT has admitted the speed throttle only applies to content providers who have not partnered up with the German telecom giant.

DT is exempting all of its own in-house content providers, the private television service Entertain, and telephone services (when provided by DT). For everyone else: the speed throttle gets closer the more customers use services like Apple iTunes or Amazon’s Lovefilm service. But DT says those companies can also get special treatment for the right price.

DT’s preferred partner cooperating agreements let “high quality content producers” pay for a managed services contract that guarantees exemption from the speed throttle and prioritization of their traffic on DT’s network, even if it means slowing down non-preferred partner content.

A parody future offer from DT.

“You cannot thumb your nose at Net Neutrality principles any better if you tried,” said Rene Pedersen, an Internet activist in Köln. “DT will have their emasculated two-tier Internet and all of Germany will have to suffer the consequences. Their own arguments do not even make sense. If there is a capacity crisis, how can they exempt some video providers that now consume the most network resources?”

“Until a few years ago, providers – just like the post – were just deliverers of packages,” said Netzpolitik’s Andre Masters. “This principle is called Net Neutrality – the equal treatment of data packets on the Internet, regardless of sender, recipient, or content. Now providers want to have a direct influence on the content sent, because they want to earn more money.”

Technology publisher Heise Online says the new usage restricting tariff has “triggered a veritable sh**storm” among net users who consider a 75GB usage limit untenable, particularly for families with multiple Internet users.

Heise is also critical of claims DT has made in the press that suggests German Internet users must either accept the usage caps or understand the company will have to spend at least €80 billion ($108 billion) to build a national fiber network to manage growing traffic.

In contrast, Goldman Sachs last year estimated the cost of wiring every home in the United States with Google Fiber would cost $140 billion, a number now considered inflated. Verizon FiOS managed to get costs down for its own fiber network to a level that suggests Google would only need around $90 billion — $10 billion more than DT claims it needs.

“DT is being disingenuous when they suggest it will cost €80 billion to solve their capacity problem. For that amount every household in Germany would get their own fiber cable with 200Mbps speeds or more,” Heise writes in their editorial. “To avoid slowing users down with a speed throttle, only a small fraction of this amount is needed to extend the Internet backbone and peering agreements between providers. For years network traffic has grown exponentially and DT has kept up with demand. So why does DT suddenly need to reshuffle the cards now?”

DT has also received criticism for how it has depicted its heavy users — mostly as content thieves and software pirates using file swapping networks to steal copyrighted works. But instead of dealing with copyright violations, DT wants a sweeping usage cap system that punishes every customer that wants to use their broadband connection.

“Customers are not insatiable Gierschlünde who want everything for free,” writes Heise. “They already pay a lot of money to Telekom: 12.5 million DSL customers roughly translates into around a half billion euros in sales per month.”

Back to the future.

The German news magazine Spiegel writes DT’s usage limits strangle the Internet for millions of Germans, especially for competing video providers:

When throttled, customers will need more than 23 hours to watch a DVD-quality movie. At Blu-ray resolution, it will take about two weeks to watch just one film.

[…] The implications of the end of Net Neutrality in Germany represents a form of economic censorship, and German politicians are standing by to watch it happen.

The federal government sees the Internet as a political bargaining chip and not as the social, cultural and economic tool it represents. The government acts in the interests of certain lobbyists, not Germany’s digital future. This allows German telecommunications companies to focus on their economic self-interests without government policies that demand investment in digital infrastructure.

A number of German Internet users are expected to switch to a cable provider, where available, to escape DT’s impending speed caps.

According to the Frankfurter Rundschau, many German cable companies also reserve the right to limit speeds for customers. But in practice, most don’t impose limits until traffic exceeds 60GB daily, and the speed cap is lifted the next day. A cable industry official says its cap currently impacts about 0.1 percent of customers, almost all who use peer-to-peer file swapping networks. Exempt from measurements that bring customers closer to a speed cap: web browsing, video streaming, and video-on-demand.

For now, Germany’s cable operators facing the same traffic growth DT speaks about find no need to impose further limits, stating their networks are handling the traffic with network upgrades as a normal course of business.

“It calls out DT’s claims as fraudulent, because cable Internet users visit the same websites and do the same things DT’s customers do and there only seems to be an ‘urgent’ problem in need of a speed throttle solution on BT’s network,” says Pedersen. “What needs to be throttled are the financial expectations of DT management and shareholders. The Internet is not their personal vault waiting to be plundered.”

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/What if Net Neutrality.mp4[/flv]

What if Net Neutrality did not exist?  [Subtitled] (1 minute)

To many, Provo, Utah might seem an unusual choice to follow on the heels of Google’s earlier announcement its gigabit fiber network was headed to Austin, Tex.

Provo is only the third largest community in Utah — Salt Lake City and West Valley City are bigger — and the community already has a fiber network called iProvo. So why build another one?

Google won’t have to.

But first some background:

iProvo was envisioned a decade ago as a public-private partnership — a fiber to the home network owned by the public with private service providers using it to sell broadband and other services . iProvo taught an early lesson about municipal broadband — large cable and phone companies routinely boycott participation in any network they do not own and control themselves.

In 2003, the president of Qwest’s Utah division made clear their intentions: “Fiber optic’s capabilities are way more than what most consumers need in their homes. Why provide a Rolls Royce when a Chevrolet will do?”

Comcast, the dominant local cable operator, also “went ballistic” according to former mayor Lewis Billings.

iProvo can be yours for just $1.

“One hired a PR firm and a telemarketing company to make calls to citizens,” Billings recalled. “They also placed full-page ads and ultimately hired people to picket City Hall. It was a bruising fight.  My favorite picket sign had a piece of telephone wire taped to it and read that I and one of my key staff members were, ‘a Twisted Pair.’”

With both Qwest and Comcast wanting nothing to do with the project, smaller independent ISPs had to fill the gap. It was a difficult sell, particularly because Qwest and Comcast blanketed Provo residents with a misinformation campaign about the network and pitched highly aggressive retention offers to keep customers with the phone and cable company. iProvo has been in financial distress ever since.

Former Provo city councilwoman Cynthia Dayton remembers being on the council when iProvo was approved and believes the public-private network was a decade before its time.

“Ten years ago it was worth the vote on iProvo,” she told the Daily Herald. It was one of the most difficult decisions but it was for the future.”

More than a year ago, Google noticed the city of Provo issued a request for proposals on what to ultimately do with iProvo.

Google became interested because Provo is seen as a city with hundreds of technology start-up companies and maintains a vibrant tech hub. The city also ranked highly for the enormous value it places on connectivity and community — something the approval and construction of iProvo demonstrated.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Provo Google Fiber 4-13.mp4[/flv]

Why Provo? Google considers the city’s rankings. (1 minute)

City officials and Google executives began quietly talking more than a year ago about Google buying the public-private network. A key selling point: the city was willing to let the operation go for a steal — just $1.00. In return, Google promised to invest in and upgrade the network to reach the two-thirds of Provo homes it does not reach. Google says iProvo will need technology upgrades in the office, but the existing fiber strands already running throughout the city are service-ready today.

Val Hale, President of the Utah Valley Chamber of Commerce, said a quick “back of the envelope” estimate put Google’s anticipated investment in iProvo network upgrades at $18 million, according to the Deseret News. Unfortunately, taxpayers will still need to pay off about $40 million in bonds the city accumulated for iProvo’s initial construction costs.

Curtis

Current Mayor John Curtis says he has made the best out of a difficult situation.

“We have maximized what we have here today,” said Curtis. “It’s about maximizing what we have. I believe in the long-term it will pay dividends many times greater than what we paid into it, but it’s going to take a while to realize that dream.”

Google promised free gigabit Internet service to 25 local public institutions including schools, hospitals, and libraries. Residential customers will be expected to pay $70 a month for 1,000Mbps service or get 5Mbps broadband service for free up to seven years.

Google’s investment in Provo is anticipated to be far lower than in Austin and Kansas City — cities where it needs to build a considerable amount of fiber infrastructure from scratch. With existing fiber already in place in Provo, Google’s gigabit service will be available by the end of this year, at least six months faster than in Austin.

With reduced construction costs, Google will only ask new customers for a $30 activation fee, far less than the $300 Google will ask Austin and Kansas City residents to pay if they do not sign a multi-year service contract or only want basic 5Mbps service.

Google sees the opportunity to use its fiber network in an ongoing effort to embarrass other broadband providers into investing in speed upgrades.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/KSL Salt Lake City Google Fiber Coming to Provo 4-17-13.flv[/flv]

KSL in Salt Lake City reports Google Fiber is coming to Provo. Last year Google began talking with the city to acquire its iProvo municipal fiber network.  (3 minutes)

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/KSTU Salt Lake City Google Fiber coming to Provo 4-17-13.flv[/flv]

KSTU in Salt Lake City reports taxpayers are still on the hook for around $40 million in bond payments to cover the construction costs of iProvo. But Google Fiber will stop other Internet providers from “cheating everyone” says one local Provo resident.  “[Other ISPs] give you the slowest connection possible and charge you a ridiculous amount for it,” said Haley Cano. (4 minutes)

[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/KTVX Salt Lake City Google Fiber in Provo 4-17-13.mp4[/flv]

KTVX in Salt Lake had some trouble navigating the difference between a gigabit and a gigabyte, and confused what Google services will be sold and which will be available for free in this report, but the ABC affiliate covered the unveiling with both city and Google company officials on hand.  (2 minutes)

[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/KTVX Salt Lake City Google Fiber Details in Provo 4-18-13.mp4[/flv]

This morning, KTVX did a better job in this interview with the mayor of Provo and Google’s Matt Dunne, who says Google believes speed matters and current ISPs simply don’t offer enough.  A key factor to attract Google’s interest is a close working relationship with the cities that want the service. (2 minutes)

This looks good enough for us, says the American Cable Association

A lobbying group for small cable operators says the nation’s current broadband availability maps are flawed, but good enough for the FCC to rely on to veto funding for rural broadband projects that might compete with some of their members.

The American Cable Association submitted its comments to the FCC as part of discussions about the next phase of broadband subsidy funding from the Connect America Fund.

Most current broadband maps rely heavily on unverified data voluntarily submitted by existing broadband providers or by third-party groups that are funded or controlled by some of the nation’s largest phone companies. Both have a vested interest painting an optimistic map of solid broadband coverage as a tool in the ongoing public policy fight pitting broadband advocates clamoring for better access and speed against the cable and phone companies that offer the service.

ACA members are concerned that the government might subsidize new broadband start-ups that could eventually compete against existing cable companies. The group calls such “overbuilders” redundant and wasteful.

“The FCC should protect the public by ensuring that broadband deployment subsidies do not result in significant government-supported overbuilding, which would cause real harm to cable operators that have invested only private capital,” ACA President and CEO Matthew M. Polka said. “It would also mean that locations across the country that need support will not receive broadband because the program would not have additional funding.”

Don’t Surprise Us With Doubling the Minimum Speed Requirement When We Thought 3Mbps Service Was Good Enough

ACA member cable operators assumed they would be safe from the government-funded overbuilders if they provided at least 3Mbps broadband, but now the FCC is exploring doubling the minimum speed to 6Mbps, which threatens a number of smaller cable operators that have avoided upgrades to increase speeds.

Polka

“This is a huge burden on a smaller operator.  These operators assumed when they filed data through the State Broadband Initiatives (SBIs) in June, 2012, providing service with speeds of at least 3 Mbps/768 kbps service was enough to protect them,” Polka said.

The ACA also wants the agency to initially reject applicants for broadband funding if current broadband map data shows another provider operating in the area, even if that provider’s volunteered service coverage maps are exaggerated.

“The Commission should presume the National Broadband Map (“NBM”) is accurate and rely upon it in identifying eligible areas for Phase II support, even though it is a work in progress and contains inaccuracies. The reasons for this conclusion are many.

First, the NBM is the most accurate and most granular representation of national broadband deployment that currently exists. Second, the federal government has already made a significant investment in the NBM, is seeking to further perfect its data, and clearly intends for it to be a key tool upon which to base its policies.

The group also warned that if the FCC does not rely on its inaccurate map, providers might be hesitant to voluntarily supply more coverage data in the future.

Prove That We Don’t Already Provide Service If Your Broadband Operation Wants Funding

The ACA’s comments also urge the FCC to require would-be new broadband providers to have the burden of proof that a cable operator does not already offer service in an area before they can qualify for Connect America funding. How? By calling the cable company pretending to be a new customer and seeing if they can schedule an installation at each particular home a provider plans to serve.

“In the normal course of business to attract customers, small cable operators post their service areas and broadband service offerings,” writes the ACA. “All a [new entrant] needs to do is survey the operator’s website and advertisements and, if necessary, call customer service. In contrast, it would be a much greater hardship for small cable operators, who lack regulatory staff and have already made the effort to be designated on the [map], to bear the initial burden and start from the beginning to submit documents to ensure they are on the map.”

In short, the ACA wants the FCC to assume their cable operator members cover an area until proven otherwise.

“It would be far less burdensome for the [new entrant] to challenge [allegedly inaccurate coverage map data] first, in which instance only those operators who are challenged would need to reaffirm their presence,” writes the ACA.

Because We Are Cable Operators Running the “Robust DOCSIS Platform,” It Means We Already Provide Great Service

The ACA also called on the FCC to give cable operators a free pass from demonstrating they can meet the Commission’s quality of service standards regarding latency and the responsiveness of the customer’s broadband connection.

“For cable operators, the Commission should presume that because they employ the robust DOCSIS platform they meet the latency requirement,” the ACA wrote.

Committing to study and oversee the quality of cable broadband is also a really bad idea according to the cable lobbying group.

“Further exploration of a cable system’s latency performance without clear and convincing evidence to the contrary would be unproductive for the Commission in carrying out its public interest mandate and for cable operators,” the ACA argued.

Don’t Tell Us What We Can Charge and What Usage Limits We Can Impose; That Should Be Reserved for Wall Street and Our Investors

The ACA is also concerned that the FCC might consider the price consumers pay for rural broadband and what usage limits rural cable operators impose when deciding whether it is time to help fund the launch of a competing provider.

Captive rural customers can pay the same or higher prices for much slower broadband service than urban Americans pay, but the ACA advocates the FCC look the other way and avoid making any such comparisons:

“[…] There are many reasons for the Commission to refrain from establishing (even minimal) comparable rates and terms of service for the provision of broadband service by cable operators to be deemed as “serving” an area.

First, the Commission should recognize that cable operators as a rule build their networks and provide broadband service with no government support, only using private capital and based on a business case enabling them to receive a market return on that investment.

Any effort by the government to impose price or usage allowances – that is regulate the service – has great potential to lower that return and slow rural broadband deployment. With universal service funding limited, this would lessen the ability for the Commission to achieve its objective of bringing broadband to unserved areas.

Further, it would be almost impossible to establish a reasonably comparable rate and terms of service because, at least for cable operators, these change so often and are usually offered in bundles with other services. Most cable customers subscribe to either or both a package of services and some sort of promotional offering. Further, bundles are far from homogeneous and operators change frequently. All of this makes it virtually impossible to have valid urban-rural comparisons.

[…] Finally, if it were to establish a comparable rate and terms of service for broadband, the Commission would be acting in an area where it clearly lacks authority.

[flv width=”528″ height=”318″]http://www.phillipdampier.com/video/MSNBC A Mom and Pop Cable Company by OPEN Forum 3-30-13.flv[/flv]

ACA past chairman Ben Hooks, CEO of Buford Media and operator of cable systems under the Alliance Communications brand, appeared on MSNBC to rail against federal cable broadband regulations and oversight requirements. Hooks operates several small cable systems in Texas, Oklahoma, Arkansas, Louisiana, Mississippi, and Alabama that are throwbacks to a much earlier era of cable. Many offer just a few dozen channels and deliver no broadband or cable phone service.

Hooks is upset because the federal government wants to help fund new start-up broadband providers in his backyard. He thinks this is unfair, because his cable operations, run with largely refurbished, cast-off cable equipment discarded years ago by larger cable operators, is funded with private capital and may have to compete with new providers partly funded by the Connect America Fund. In the middle of the dispute are rural Americans who cannot get broadband from Alliance Communications and would be prevented from getting it from anyone else if Hooks has his way.  (6 minutes)