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Attacks on Tennessee’s EPB Municipal Broadband Fall Flat in Light of Facts

Phillip Dampier March 28, 2016 Astroturf, AT&T, Broadband Speed, Comcast/Xfinity, Community Networks, Competition, Consumer News, Data Caps, Editorial & Site News, EPB Fiber, Public Policy & Gov't, Rural Broadband, Wireless Broadband Comments Off on Attacks on Tennessee’s EPB Municipal Broadband Fall Flat in Light of Facts

latinos for tnThe worst enemy of some advocacy groups writing guest editorial hit pieces against municipal broadband is: facts.

Raul Lopez is the founder and executive director for Latinos for Tennessee, a 501C advocacy group that reported $0 in assets, $0 in income, and is not required to file a Form 990 with the Internal Revenue Service as of 2014. Lopez claims the group is dedicated to providing “Latinos in Tennessee with information and resources grounded on faith, family and freedom.”

But his views on telecom issues are grounded in AT&T and Comcast’s tiresome and false talking points about publicly owned broadband. His “opinion piece” in the Knoxville News Sentinel was almost entirely fact-free:

It is not the role of the government to use taxpayer resources to compete with private industry. Government is highly inefficient — usually creating an inferior product at a higher price — and is always slower to respond to market changes. Do we really want government providing our Internet service? Government-run health care hasn’t worked so well, so why would we promote government-run Internet?

Phillip Dampier: Corporate talking point nonsense regurgitated by Mr. Lopez isn't for the good of anyone.

Phillip Dampier: Corporate talking point nonsense regurgitated by Mr. Lopez isn’t for the good of anyone.

Lopez’s claim that only private providers are good at identifying what customers want falls to pieces when we’re talking about AT&T and Comcast. Public utility EPB was the first to deliver gigabit fiber to the home service in Chattanooga, first to deliver honest everyday pricing, still offers unlimited service without data caps and usage billing that customers despise, and has a customer approval and reliability rating Comcast and AT&T can only dream about.

Do the people of Chattanooga want “the government” (EPB is actually a public utility) to provide Internet service? Apparently so. Last fall, EPB achieved the status of being the #1 telecom provider in Chattanooga, with nearly half of all households EPB serves signed up for at least one EPB service — TV, broadband, or phone service. Comcast used to be #1 until real competition arrived. That “paragon of virtue’s” biggest private sector innovation of late? Rolling out its 300GB usage cap (with overlimit fees) in Chattanooga. That’s the same cap that inspired more than 13,000 Americans to file written complaints with the FCC about Comcast’s broadband pricing practices. EPB advertises no such data caps and has delivered the service residents actually want. Lopez calls that “hurting competition in our state and putting vital services at risk.”

Remarkably, other so-called “small government” advocates (usually well-funded by the telecom industry) immediately began beating a drum for Big Government protectionism to stop EPB by pushing for a state law to ban or restrict publicly owned networks.

Lopez appears to be on board:

Our Legislature considered a bill this session that would repeal a state municipal broadband law that prohibits government-owned networks from expanding across their municipal borders. Thankfully, it failed in the House Business and Utilities Subcommittee, but it will undoubtedly be back again in future legislative sessions. The legislation is troubling because it will harm taxpayers and stifle private-sector competition and innovation.

Or more accurately, it will make sure Comcast and AT&T can ram usage caps and higher prices for worse service down the throats of Tennessee customers.

epb broadband prices

EPB’s broadband pricing. Higher discounts possible with bundling.

Lopez also plays fast and loose with the truth suggesting the Obama Administration handed EPB a $111.7 million federal grant to compete with Comcast and AT&T. In reality, that grant was for EPB to build a smart grid for its electricity network. That fiber-based grid is estimated to have avoided 124.7 million customer minutes of interruptions by better detection of power faults and better methods of rerouting power to restore service more quickly than in the past.

EPB provides municipal power, broadband, television, and telephone service for residents in Chattanooga, Tennessee

EPB provides municipal power, broadband, television, and telephone service for residents in Chattanooga, Tennessee

Public utilities can run smart grids and not sell television, broadband, and phone service, leaving that fiber network underutilized. EPB decided it could put that network to good use, and a recent study by University of Tennessee economist Bento Lobo found EPB’s fiber services helped generate between 2,800 and 5,200 new jobs and added $865.3 million to $1.3 billion to the local economy. That translates into $2,832-$3,762 per Hamilton County resident. That’s quite a return on a $111.7 million investment that was originally intended just to help keep the lights on.

So EPB’s presence in Chattanooga has not harmed taxpayers and has not driven either of its two largest competitors out of the city.

Lopez then wanders into an equally ridiculous premise – that minority communities want mobile Internet access, not the fiber to the home service EPB offers:

Not all consumers access the Internet the same way. According to the Pew Research Center, Hispanics and African-Americans are more likely to rely on mobile broadband than traditional wire-line service. Indeed, minority communities are even more likely than the population as a whole to use their smartphones to apply for jobs online.

[…] Additionally, just like people are getting rid of basic at-home telephone service, Americans, especially minorities, are getting rid of at-home broadband. In 2013, 70 percent of Americans had broadband at home. Just two years later, only 67 percent did. The decline was true across almost the entire demographic board, regardless of race, income category, education level or location. Indeed, in 2013, 16 percent of Hispanics said they relied only on their smartphones for Internet access, and by 2015 that figure was up to 23 percent.

That drop in at-home broadband isn’t because fewer Americans have access to wireless broadband, it’s because more are moving to a wireless-only model. The bureaucracy of government has trouble adapting to changes like these, which is why government-owned broadband systems are often technologically out of date before they’re finished.

But Lopez ignores a key finding of Pew’s research:

In some form, cost is the chief reason that non-adopters cite when permitted to identify more than one reason they do not have a home high-speed subscription. Overall, 66% of non-adopters point toward either the monthly service fee or the cost of the computer as a barrier to adoption.

What community broadband provides communities the big phone and cable companies don't.

So it isn’t that customers want to exclusively access Internet services over a smartphone, they don’t have much of a choice at the prices providers like Comcast and AT&T charge. Wireless-only broadband is also typically usage capped and so expensive that average families with both wired broadband and a smartphone still do most of their data-intensive usage from home or over Wi-Fi to protect their usage allowance.

EPB runs a true fiber to the home network, Comcast runs a hybrid fiber-coax network, and AT&T mostly relies on a hybrid fiber-copper phone wire network. Comcast and AT&T are technically out of date, not EPB.

Not one of Lopez’s arguments has withstood the scrutiny of checking his claims against the facts, and here is another fact-finding failure on his part:

Top EPB officials argue that residents in Bradley County are clambering for EPB-offered Internet service, but the truth is Bradley County is already served by multiple private Internet service providers. Indeed, statewide only 215,000 Tennesseans, or approximately 4 percent, don’t have broadband access. We must find ways to address the needs of those residents, but that’s not what this bill would do. This bill would promote government providers over private providers, harming taxpayers and consumers along the way.

Outlined section shows Bradley County, Tenn., east of Chattanooga.

Outlined section shows Bradley County, Tenn., east of Chattanooga.

The Chattanoogan reported it far differently, talking with residents and local elected officials on the ground in the broadband-challenged county:

The legislation would remove territorial restrictions and provide the clearest path possible for EPB to serve customers and for customers to receive high-speed internet.

State Rep. Dan Howell, the former executive assistant to the county mayor of Bradley County, was in attendance and called broadband a “necessity” as he offered his full support to helping EPB, as did Tennessee State Senator Todd Gardenhire.

“We can finally get something done,” Senator Gardenhire said. “The major carriers, Charter, Comcast and AT&T, have an exclusive right to the area and they haven’t done anything about it.”

So while EPB’s proposed expansion threatened Comcast and AT&T sufficiently to bring out their lobbyists demanding a ban on such expansions in the state legislature, neither company has specific plans to offer service to unserved locations in the area. Only EPB has shown interest in expansion, and without taxpayer funds.

The facts just don’t tell the same story Lopez, AT&T, and Comcast tell and would like you to believe. EPB has demonstrated it is the best provider in Chattanooga, provides service customers want at a fair price, and represents the interests of the community, not Wall Street and investors Comcast and AT&T listen to almost exclusively. Lopez would do a better job for his group’s membership by telling the truth and not redistributing stale, disproven Big Telecom talking points.

Charter Cable Ponders Joining Comcast Selling Service on Amazon.com (to Scathing Reviews)

amazonCharter Communications is in talks with Amazon.com about joining Comcast to pitch cable service to the online retailer’s giant customer base.

Unlike Comcast, a Charter spokesperson told the Wall Street Journal the company wasn’t necessarily ready to jump in with both feet and was undecided.

One reason for that apparent reluctance may be the scathing reviews Amazon customers are writing about Comcast, which as of today has managed 1.2 out of 5 stars with 452 published reviews. Comcast probably rates even lower because most of the 5-star reviews are purely tongue-in-cheek:

  • 5 Stars for Being Soulless Corporate Demons. Comcast feeds on the weak. In all seriousness, they are awful…. Anything for a profit….
  • Hitler highly recommends Comcast: Adolf Hitler was quoted saying this about Comcast: “Beeindruckend, das ist böse.” Rough translation: “Wow, that’s evil.”
  • Trump Should Send Them To China: Amazing, amazing product that would do very well in China.

The “one star” reviews, which represent more than 95% of the reviews, are decidedly less charitable:

  • Having Comcast has been the worst experience of my life. You are better off with anything else: FiOS, Google Fiber, Carrier Pigeon, anything.
  • I’m getting third world internet service at top dollar prices which go up if I’m stupid enough to remain a customer.
  • Jumping into Comcast is like jumping into a pool, only the pool isn’t filled with water; it’s filled with lies, stress, hate and death.
  • Capitalism at its scummiest.
  • Worst company on planet – Comcast is proof there is NO god…only chaos.
  • False advertising, hidden fees, incompetent customer service…and that’s just for starters!
  • Burn in hell!
  • Investing with Bernie Madoff would be better choice.
  • Dealing with this company is akin to having your fingernails removed with pliers on a regular basis.
  • Worse than that burning feeling when urinating.

But the reviews weren’t all bad.

“The speeds and services in my area are awesome,” wrote Tracey Fobia. “Xfinity is a game changer.”

A quick Google search revealed Mr. Fobia (coincidentally) is employed by Comcast as a facilities supervisor.

amazon comcast

Comcast’s head of its cable division Neil Smit hoped Amazon’s reputation for excellent customer service might rub off on Comcast. To test that premise, Comcast is trying something new only for Amazon customers – delivering something approaching tolerable customer service:

A Comcast spokesman said it has set aside customer call centers in Tucson, Ariz., and Spokane, Wash., employing about 90 representatives trained just to receive inquiries about Comcast sales made through Amazon. The customer representatives’ goal is to “answer your call in 60 seconds or less,” with no waiting, according to Amazon’s landing page.

The Amazon site provides an easy link to help customers know how to “avoid leasing fees” by buying their own compatible modems and Wi-Fi routers. The site also promises that people can cancel Comcast subscriptions within 30 days or select a no-term contract to downgrade or disconnect whenever they wish.

“We’re partnering with a company that’s so good at the customer experience — I think that’s really what excites me,” Smit told the Wall Street Journal.

Amazon receives a commission for each Comcast sale, according to the newspaper, but based on the hostility of the reviews, it isn’t likely Amazon has earned enough to buy anyone lunch.

Stop the Cap! Joins 21 Other Consumer Groups Asking FCC to Block Charter-Time Warner Cable Merger

charter twc bhOn Monday, Stop the Cap! joined 21 other public interest organizations in sending a joint letter urging the Federal Communications Commission to deny Charter’s bid to take over Time Warner Cable and Bright House Networks. Late last week, the Wall Street Journal reported that FCC Chairman Tom Wheeler may be planning to circulate a draft order approving the $90 billion merger.

The Center for Media Justice, CREDO Action, Daily Kos, Demand Progress, Free Press and Presente.org were among the media justice, Internet rights and public interest groups calling on the FCC to reject this deal, which would create a national broadband duopoly.

Together, Charter and Comcast would control nearly two-thirds of the nation’s high-speed broadband subscribers and would offer service to nearly 80 percent of U.S. households. The letter notes that this substantial increase in market power, coupled with Charter’s $66 billion in debt, would give the company both the incentive and the heightened ability to raise prices at will. This would broaden the digital divide, hitting low-income communities the hardest.

Stop the Cap! earlier filed objections to the merger with the FCC and in two states seen as critical to the deal – New York and California. In our view, no cable merger has ever resulted in better service or lower prices for consumers. Such deals deliver handsome sums to executives and shareholders while saddling customers with relentless rate hikes and no improvement in service. Charter’s history is troubling and its ability to meet its financial obligations while saddled in debt is dubious. Charter declared bankruptcy in 2009, after accumulating $21.7 billion in debt accumulated from years of mergers and consolidation efforts. As credit markets tightened up, Charter’s ability to manage its debt fell apart. Now the company is back to its old modus operandi, piling up debt buying Time Warner Cable — a much larger operation, and trying to combine it with Bright House Networks, another cable operator prominent in Florida.

Earlier this year, several of the signers delivered petitions to the FCC from more than 300,000 Americans opposing the merger, and thousands have called the agency in recent days to weigh in against the deal. Political leaders including Senate Democratic Leader Harry Reid have spoken out about the merger’s many harms.

“Too many Washington insiders have given up on challenging this deal despite its serious harms,” said Free Press policy director Matt Wood. “Instead of forecasting its chances for approval, the groups signing this letter will keep fighting to block this merger, along with the guaranteed price increases it would foist on people and communities who can least afford it.

“If Charter gets this merger approved, nothing will stop it from raising its rates for high-speed broadband and video customers who have nowhere else to turn. Temporary promises and weak conditions aren’t going to preserve competition and choice in the long run, and they’re not going to do anything to stop these price hikes. The FCC is charged with promoting the public interest, and there’s no way in which this merger benefits the public. Higher prices and fewer choices won’t help anyone but the companies pitching this bad bargain.”

“If its takeover of Time Warner Cable goes through, Charter will have a broadband footprint as big as Comcast’s,” said Demand Progress executive director David Segal. “This would turn an industry that’s already too concentrated into a duopoly, paving the way for higher rates today and the eventual formation of a new cross-sector behemoth that controls content production and delivery.

“Americans increasingly understand that corporate concentration is jacking up prices and lowering quality for all sorts of basic goods and services. At a hearing of a Senate antitrust subcommittee this month, lawmakers made it clear that they see companies that are allegedly too big to fix in many industries, not just the banking sector. This FCC must now decide whether it wants to stem the swelling tide of concentration, or enable these monopolies.”

Free Press and Stop the Cap! contributed elements of this story.

Broadband Spending Drops: Equipment Costs Falling, Your Prices Rising

Phillip Dampier March 21, 2016 Competition, Consumer News, Data Caps Comments Off on Broadband Spending Drops: Equipment Costs Falling, Your Prices Rising
Fixed (wired) broadband is now the most important revenue component of the TV-Internet-Phone package.

Fixed (wired) broadband is now the most important revenue component of the TV-Internet-Phone package.

Despite ordering 41 percent more downstream network equipment in 2015 than the year before, cable operators enjoyed a 3% drop in broadband equipment expenses, according to researcher SNL Kagan.

While your cable operator blames the cost of upgrades and usage growth for your latest broadband rate hike, cable company spending on broadband actually declined thanks to lower prices and more efficient broadband networks.

ARRIS, a major supplier of cable broadband equipment, also saw its revenue from equipment sales decline as cable operators used software virtualization to cut the price of DOCSIS channels over new, more efficient converged cable access platforms.

Cable operators are feeling heat in some markets from emerging fiber-based competitors, but the imminent arrival of DOCSIS 3.1 has made meeting those competitive challenges easy and less costly than ever before.

ARRIS closed out the year as the global revenue leader in broadband equipment, grabbing 53% of total revenue among providers of cable broadband infrastructure. ARRIS benefitted immensely from the focus of its primary North American customers, including Comcast and Time Warner Cable, on dramatically increasing throughput to stay competitive with Verizon FiOS, AT&T U-verse, and Google Fiber.

“The imminent availability of DOCSIS 3.1 linecards and full-spectrum channels won’t slow the continued purchase and deployment of current DOCSIS 3.0 channels as cable operators must continue to increase throughput to reduce the likelihood of churn among their broadband subscribers,” said Jeff Heynen, senior research analyst for SNL Kagan.

But the costs to deliver those service improvements are now so low, providers are enjoying actual declines in their annual expenses for equipment upgrades, while at the same time many are raising prices and introducing or increasing modem rental fees and usage caps.

T-Mobile Lets Customers Binge On Porn With No Data Caps; PBS Still Capped

Phillip Dampier March 21, 2016 Broadband "Shortage", Consumer News, Data Caps, Online Video, T-Mobile, Wireless Broadband Comments Off on T-Mobile Lets Customers Binge On Porn With No Data Caps; PBS Still Capped

Dantes-Inferno-BrothelIf you are willing to spend $20 a month for a porn video service created for mobile devices, T-Mobile will let you watch forever without counting against your monthly data cap.

The latest “zero rating” (exempting some ‘preferred’ content from data caps) controversy from John Legere’s T-Mobile means if you watch educational programming from PBS on your mobile device, it will take a bite out of your usage allowance. But you can nibble all you like on MiKandi, the latest addition to the Binge On program.

MiKandi, which claims to offer “DVD quality” adult entertainment, calls it a victory for freedom of speech:

“When mainstream tech companies announce new platforms it tends to be another way to censor your online experience,” MiKandi CEO Jesse Adams said in a company blog post. “T-Mobile is treating adults like adults and we hope that other tech companies follow in their footsteps.”

T-Mobile hasn’t exactly trumpeted their new association with a porn video supplier, quietly adding the site to its growing list of data cap free websites. But now that it is there, can Pornhub be far behind?

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