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Public-Private Failure: How Mediacom Killed Marshalltown’s Free Community Wi-Fi

Five years ago, municipal Wi-Fi projects were enjoying a small boom.  The concept of providing low-cost or free Internet access seemed like a winner because it could provide service to those who could not afford traditional broadband, would stimulate economic development downtown, and possibly attract business as shoppers stopped in cafes or stores to use their wireless devices.  In some communities, just the spectacle of a city-wide high technology wireless network delivered worthwhile bragging rights that adjacent communities didn’t have.

For most city or town officials pondering investment in a Wi-Fi network, the idea germinates from a perceived lack of service from private providers.  If private companies were delivering the service, few communities would spend the time, effort, and money duplicating it.

In the community of Marshalltown, public Wi-Fi in 2005 was a service only found in a small selection of stores and cafes in the central business district.  The Marshalltown Economic Development Impact Committee sought to change that, promoting a plan to construct a free-to-use Wi-Fi network covering a 20-block radius centered on the Marshall County Courthouse.  The community of 27,000 got a three month trial of the downtown Wi-Fi network in 1995, with the city and county sharing 50 percent of its cost, with the remaining 50 percent paid for by private donations.

Mediacom, the cable company serving Marshalltown, was incensed by the notion of a community-owned broadband provider delivering improved (and free) Internet access across the city.  Even worse in their eyes, local government officials were pondering creating a public broadband utility.

Marshalltown (Marshall County), Iowa

It wasn’t long before new, shadowy groups with names like “Project Taxpayer Protection” showed up in town attacking the concept of municipal Internet access.  After a blizzard of brochures and exaggerated claims about “government broadband,” the network became a point of controversy among the locals.

Only later would the community learn the group (whose status as a non-profit was later revoked by the Internet Revenue Service for failure to file timely reports on its funding and activities) was actually funded mostly by Mediacom itself, with the full support of the Iowa Cable Association.

The astroturf campaign against public involvement in Wi-Fi, which could threaten Mediacom’s broadband service profits, was effectively an investment against competition.  It was an effort that paid dividends by late 2005, when the city and Mediacom suddenly announced a new “public-private partnership” to administer and expand the Wi-Fi network.  There were a few important changes, however:

  1. Mediacom’s concept of “free” was markedly different than the designers’ original vision.  The cable company had other ideas, placing restrictions on how much “free use” was allowed;
  2. Customers who used the newly-announced “free service” got it at speeds not much better than dial-up and definitely slower than 3G;
  3. Residential Mediacom broadband customers could get unlimited time on the formerly-free network, if they paid $19.95 a month for 256kbps access;
  4. To make the network seem business-friendly, business customers were told they could get up to 10Mbps service for $59.95 a month.

The goal of the partnership, according to Mike Miller, chairman of the Marshalltown Economic Development Impact Committee, was to see low-cost broadband Internet access citywide by the end of 2006.

Oh, and Mediacom insisted on something else: no more talk of a city-created municipal telecommunications provider, at least for a year anyway.

“We commend you on the foresight and vision to do this,” Bill Peard, Mediacom’s government affairs manager, told city officials at the time the deal was announced.

Friends until the community-owned...

Once Mediacom got its hands on the formerly community-owned network, it was the beginning of the end.

Business customers could not get Mediacom to sell them access at the promised price because representatives could not find the offer.

It was much worse for residential users.

Free Wi-Fi access soon became limited to one hour a day, up to 10 hours per month for non-Mediacom customers.  After that, you paid if you wanted more.

City and company officials spent most of their time wrangling over the costs of the service and its future potential.  What city officials were not planning for was the network’s virtual demise at the hands of the cable company.

...free Wi-Fi network is at an end.

Today, free access is a distant memory, as Mediacom pulled the plug claiming there was “limited interest.”

Effectively, Mediacom’s idea of a public-private partnership was the systematic decommissioning of a community’s public Internet alternative, all to protect its own broadband business.

That’s a lesson of caution for any community seeking to team up with private broadband providers.  Marshalltown allowed that partnership to first and foremost serve Mediacom’s business interests, not the public.  Now that network is effectively gone and largely-forgotten.

That suits Mediacom just fine.

Cogeco: Prove Our Usage Meter is Wrong When It Says You Used 36GB Yesterday

Phillip Dampier September 2, 2011 Canada, Cogeco, Data Caps, Public Policy & Gov't 5 Comments

A snake in the grass?

Cogeco customers trying to avoid usage-based overlimit fees are finding that difficult when the cable company’s online usage measurement tool is offline or misreads their usage.  But the real trouble comes when customers find themselves arguing over wild usage measurements with Cogeco’s customer service representatives, who believe their meter is sacrosanct.

Two Ontario customers report Cogeco’s meter is registering some wild usage numbers this week — measurements those customers say count against their monthly usage allowance, drive them into overlimit fees, or force them to try and convince Cogeco employees they didn’t use as much as the company claims they did.

Take “Jubenvi,” a Cogeco customer in Sarnia.  His efforts to check on his usage through Cogeco’s online measurement tool was an exercise in futility until Monday, when Cogeco claimed he used 36GB of usage the day before.

“Not a chance,” he argues on Broadband Reports‘ Cogeco customer forum.  “No warnings either and [the tool] says I’m at 153 percent [of my allowance].”

That means one thing: overlimit penalty fees of $1/GB + HST.

“Ya, I won’t be paying that,” he declares.

Petawawa customer RJBrake also found last Sunday a “heavy traffic day” for him as well, at least according to Cogeco’s usage meter.

“This is completely stupid,” he shared. “There’s no way I downloaded 14GB in a day.”

Jubenvi called Cogeco to complain and to demand the overlimit charges be waived for usage he never actually used.

That opened the door to a customer service investigation which could send shivers up some customers’ spines.  Cogeco tracks customer usage over several months, and claimed Jubenvi‘s past usage regularly exceeded their arbitrary usage allowance, so it’s a safe bet he downloaded 36GB in a single day.

Unwilling to concede their meter might be inaccurate, a representative issued a one-time “loyal customer courtesy credit.”

Surprise! Nearly 15GB of usage last Sunday, whether you used it or not.

Jubenvi was unimpressed with small favors.

“She [said] that a few times a month, someone in [my] family rents a few movies from iTunes store, [but] never 36GB a day,” Jubenvi explains.  “I [wondered aloud] what if this happens again and [asked] why I didn’t receive any 85% and 100% [usage allowance] warnings.”

Cogeco didn’t have answers for either question, content on placing the blame entirely at the feet of the customer.

“She just goes into how I should upgrade my computer — it could have a virus, [and] make sure I’m not using Netflix,” he says.

Unfortunately, Canadian ISP usage meters are largely unregulated.  A Hamilton customer notes:

The CRTC along with Weights and Measures Canada won’t do anything to help you. I along with others here have already tried to file complaints about Cogeco’s usage meter and they both say that this doesn’t follow under there pervue of duties.

At the moment we are on our own and I don’t see anyone that’s going to help us until an MP or a Court get involved in this situation. I personally think that some time after Oct. 1 when there is no [longer a maximum cap on overlimit fees] for the Ultimate 30 and 50Mbps customers, someone is going to get hacked and get a huge bill and then lawyers and the news media will then find this topic interesting.

Anyone that’s on an Ultimate 30 or 50Mbps account could easily download anywhere from 60GB to over 100GB’s a day. It’s simple. I can grab 1GB worth of data in under 10 minutes on my Ultimate 30 connection so multiply that by 24 hours and you get 72GB.

Goodnight Irene: Some Customers Will Have to Wait Until October for Restored Internet Service

Cablevision: Don't Call Us

By the time Hurricane Irene reached upstate New York and New England, it was a tropical storm some say was over-hyped from the outset, but don’t tell that to utility companies facing weeks of service restorations that will leave some of their customers offline until October.

The worst damage to infrastructure was done in this region, with utility poles swept away in flood waters right along with the homes they used to serve.  Telephone and cable companies in several parts of the region cannot even begin to restore service until higher-priority electric service is brought back.  Besides, you can’t use a broadband connection if your power has been out for a week plus.

Those addicted to their online connection are making due in parking lots and other Wi-Fi hotspots where service prevailed over Irene.  Wireless connectivity from cell phone companies is also getting a workout, assuming customers are aware of usage caps and limitations which could make September’s bill much higher than expected.

Stop the Cap! has learned some DSL service restoration appointments in upstate New York, Massachusetts, Vermont, and New Hampshire are now extending into October, although companies suggest outside work may resolve problems.  Customers with the worst luck face a lengthy wait for the replacement of utility poles, new utility lines to be strung across them, and replacement of individual lines connected from the pole to individual homes.

Some FairPoint Communications customers are finding Irene did a real number on their DSL service even if power outages were limited.

In southwestern New Hampshire, Robert Mitchell was presented with a unique error page on his computer after the lights came back on:

“…we are improving the security of your broadband connection. As such, you have been redirected to the FairPoint Communications broadband service page to install a security update.”

That was a fine idea, except its implementation left customers like Mitchell with the most secure broadband connection around, resistant to all malware and viruses — namely, by not having any connection at all.

My annoyance only increased when I realized that FairPoint may have provided a link to download the security update software, but they were not going to make the process of accessing that software easy.

“Your Web browser (Firefox) and Operating System (Mac) are not compatible with the DSL Security improvement process…please re-open this page on a Windows XP, Vista or Windows 7 PC using Internet Explorer,” the message continued.

Bully for me, I have two Macs in the office. Time to call technical support? Nope, sorry. Both of my phone lines use Vonage, a VoIP service that relies on a working DSL modem for dial tone. Cell service at the house was sketchy at best — if I could even get through to technical support during a hurricane.

With the help of an old Windows XP machine, Mitchell managed to finally get back online.  Later, he learned the power spikes and brownouts that preceded the blackout in his neighborhood had caused his DSL modem to resort to its original default settings.  When FairPoint customers first connect a DSL modem, the company prompts them to perform the aforementioned “security update.”  Only FairPoint stopped offering that update more than eight months earlier.  Now, according to Mitchell, it’s just the default start page for newly activated DSL modems.

Customers further east in downstate New York, Massachusetts, Maine, Long Island, Connecticut, and New Jersey are finding getting service restoration highly dependent on which provider they use.

Time Warner Cable customers numbering about 350,000 found their service out Wednesday after leftover flooding and debris tore up fiber cables serving Maine, New Hampshire and Vermont.  Service was restored that evening.

Cablevision customers in Connecticut are still experiencing new outages caused by flooding, and with power company workers contending with more damage in that state than further south in New York, cable crews can’t restore service until the lights are back on.

Cablevision customers on Long Island are still being told not to bother calling the cable company to report outages.  Those that do are often given a date of Sept. 15 for full service restoration, although it could be sooner if damage in individual neighborhoods is less severe.  A Cablevision spokesman said, “Cablevision is experiencing widespread service interruptions, primarily related to the loss of power.  Cablevision crews are in the field and we will be working around the clock to make necessary repairs, in close coordination with local utilities.  Generally, as electricity is returned to an area, customers will be able to access Cablevision service.”

Verizon customers in downstate New York and New Jersey faced lengthy hold times to report service outages, and are given a range of dates from later this week until mid-September for full service restoration.  Some pockets of very badly damaged infrastructure may take even longer to access and repair.  Verizon’s largest union workforce, under the auspices of Communications Workers of America District 1 are accusing Verizon management of slowing repairs with denials of overtime work requests, in part to punish workers for their recent strike action.  John Bonomo, a Verizon spokesperson, denies that accusation, but added the company is not treating the thousands of customers still without service as an emergency, noting landline service “is not as vital as it had been in past years.”

Comcast customers, mostly in Pennsylvania, Vermont and Massachusetts, are turning to smartphones to cope through extended service outages, according to the Boston Globe:

Comcast Corp. customer Soraya Stevens turned to her iPhone when her cable blew out, logging on to Twitter from her Bedford home for the latest power outage updates. “I would not have any communication or insight without my smartphone,’’ said Stevens, a software engineer.

Some customers who lost cable service lost their TV, Internet, and landline phone, which are often bundled and sold together. Many turned to their smartphones, operating on batteries and the signal from cellphone towers, or friends and family who still had cable service.

AT&T, which serves landline customers in Connecticut, experienced more outages a day or two after Irene departed as battery backup equipment installed at landline central offices finally failed.  Those equipped with diesel generators are still up and running, but many AT&T customers sold a package of broadband and phone service may actually be receiving telephone service over a less-robust Voice Over IP network, supported with battery backup equipment that shuts down after 24 hours, when the batteries are exhausted.  This has left customers with standard copper wire phone service still up and running, but customers on Voice Over IP completely disconnected.

Bill Henderson, president of Communications Workers of America Local 1298, told the Hartford Courant those landlines aren’t considered landlines by the Department of Utility Control, and aren’t regulated for reliability, as the old system is.

“Technology has risen. Some of the things we’ve given up in that system is reliability,” he said. “This is what I’ve been screaming about to the DPUC. It’s a telephone! We need to regulate this service.”

Customers are also complaining loudly about AT&T’s poor wireless performance during Irene, with many tower outages and service disruptions that are still ongoing.

Remember, when services are restored, be sure and contact your provider and request a full service credit.  You will not receive one unless you ask.

New Product Lets Broadband Providers Notify Customers When They ‘Use Too Much’ Internet

Phillip Dampier August 31, 2011 BendBroadband, Buckeye, Data Caps, WOW! 5 Comments

Are you using too much Internet service?  If your service provider thinks you are, it can alert you by barging in on your web-browsing sessions with forced notification messages warning you are about to be the latest victim of Internet Overcharging.

PerfTech, a maker of browser messaging systems has teamed up with Active Broadband Networks to deliver providers a way to notify up to two million subscribers about their broadband usage from just a single rack-based system.

“Feedback from ISPs who have deployed usage-based Internet tiers has confirmed that two factors are key to success: accurate usage measurement and quick, proactive notifications,” PerfTech vice president of sales Jane Christ said in a statement.

Most browser message injection systems are used to warn customers when they are approaching monthly usage limits or excessive use charges.  Some can even redirect web users to a single ISP-administered website to alert them their service has been suspended or request payment for additional usage with a credit card.

So far, only smaller U.S. providers are using PerfTech’s system, including WideOpenWest, BendBroadband in Oregon, and Buckeye Cable in Ohio.

  • WideOpenWest doesn’t appear to limit usage except for newsgroups.  According to their FAQ, users may download up to 5GB per month of newsgroup content;
  • Bend Broadband has a 100GB monthly limit on all but its highest speed Internet plan, which carries a 150GB monthly limit.  The overlimit fee is $1.50 per gigabyte.
  • Buckeye Cable favors “network management” techniques, which can slow down customers deemed to be using too much, at its discretion.  But the company does have a 3GB strict usage cap on newsgroup access.  Exceeding it is very costly.  The overlimit fee is a whopping $45 per gigabyte.

Unlimited Data Plans Caused Shift Away from BlackBerry Devices, Company Alludes

Phillip Dampier August 30, 2011 Audio, Competition, Consumer News, Data Caps, Wireless Broadband Comments Off on Unlimited Data Plans Caused Shift Away from BlackBerry Devices, Company Alludes

Better days: AT&T's BlackBerry Curve, circa 2007

The prevalence of unlimited wireless data plans may have been an important factor in the American consumer’s move away from Research in Motion’s (RIM) former superstar BlackBerry, according to a company official.

Responding to questions about its falling market share in the U.S., Patrick Spence, the managing director of regional marketing at RIM pointed to unlimited usage plans as one potential way the competition got a leg up on their devices.

“In the United States, they’ve had flat rate data pricing for a long time, which has meant users haven’t had to worry about how they are using their smartphones,” Spence said.

He noted Americans love for wireless data has forced carriers to launch 4G upgrades in advance of other markets where 3G remains the fastest available standard.

The Guardian’s Charles Arthur gave RIM’s Patrick Spence a challenging series of questions about RIM’s ongoing loss of market share, and why the company is forcing BlackBerry owners to cope through two major platform upgrades in the coming months. (11 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.

Spence said the dynamics of unlimited data have inspired a change in the types of devices used in the United States, namely not necessarily those carrying the BlackBerry brand.

As carriers end unlimited data, Spence predicts users will likely change their behavior in concert with new data plan limits as low as 200MB per month.

Where data limits prevail, BlackBerry devices seem to do better.  Spence touted the fact BlackBerry phones have now achieved number one status in Africa and countries in the Middle East like Saudi Arabia, displacing troubled Nokia.

Spence warned tech reporters not to extrapolate American marketplace trends as foreshadowing developments in the rest of the world.  One reason for that, according to Spence, has been the unlimited data plan, now being replaced with usage based billing or usage-capped plans.

BlackBerry phones have had a difficult time competing with the iconic Apple iPhone, as well as Android-based smartphones on offer from virtually every wireless carrier.  BlackBerry devices, once deemed the most advanced phones in the market, have lost quite a bit of luster in the last four years, particularly after the arrival of iPhone.

As a result, RIM has been engaged in serious cost-cutting, announcing job cuts of some 2,000 employees recently.  The company hopes to spring back with a series of platform upgrades and new phones, dubbed “superphones” by RIM, to regain market share.

It cannot come soon enough, as RIM lost another four percent of market share in just the past four months.  comScore suggests RIM phones now have just 21.7 percent of the smartphone market.  Only Microsoft and Nokia are doing worse.  Most of the BlackBerry fan base are moving to Android-based smartphones instead as their contracts come up for renewal, particularly those made by Samsung.  The Korean manufacturer now manufactures one of every four smartphones Americans own.

As of July 2011, RIM has 7.6 percent of the market share in the United States.

BlackBerry phones have fewer challenges overseas, and the devices remain very popular among younger users in the United Kingdom, parts of western Europe, Africa, and the Middle East.  That has been a mixed blessing for RIM in England, where the phone has been  implicated as the device of choice for looters during riots earlier this month.

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