Home » Public Policy & Gov’t » Recent Articles:

This Internet Provider Earned a 94% Customer Satisfaction Score, and It Isn’t Comcast or Spectrum

One of America’s internet service providers managed to achieve a customer satisfaction score of 94%, an unprecedented vote of approval from consumers that typically loathe their cable or phone company.

What also makes this provider different is that it is owned by the public, and administered by the City of Fairlawn, Ohio. Fairlawn is a suburb of Akron, with a population of around 7,400 people. Akron is dominated by Charter Spectrum for cable and AT&T for telephone service. But the suburbs have been underserved by both companies for decades. As with many northeastern cities, the economic shift away from manufacturing towards high-tech businesses requires robust connectivity. But many communities are stuck with a cable company that will not service less populated areas in town and a phone company that is willing to leave many customers with low-speed DSL and nothing better.

When a community finds it cannot get gigabit fiber optic service for residents, it can either live with what is on offer instead or decide to do something about it. Fairlawn decided it was time to establish FairlawnGig, a municipal broadband utility that would provide gigabit fiber service to every resident in town, if they wanted it.

Broadband Communities reports local residents love the service they are getting:

The online survey results reveal overall satisfaction with FairlawnGig at an astoundingly high number of 94% with more than 3 out of 4 (77%) saying they are “very satisfied.”

Additionally, FairlawnGig 94% of residential customers rated the service they receive from FairlawnGig as “excellent” or “very good.”

FairlawnGig offers two plans to residents: 300/300 Mbps service for $55 a month or 1,000/1,000 Mbps service for $75. Landline phone service is an extra $25 a month, and the municipal provider has pointed its customers to online cable TV alternatives like Hulu and YouTube TV for television service. Incumbent cable and phone companies usually respond to this kind of competition with cut-rate promotions to keep the customers they have and lure others back. Spectrum has countered with promotions offering 400 Mbps internet for as little as $30/mo for two years. Despite the potential savings, most people in Fairlawn won’t go back to Spectrum regardless of the price. FairlawnGig’s loyalty score is 80, with 85% of those not only sticking with FairlawnGig but also actively recommending it to others.

Residents appreciate the service, deemed very reliable, and that technicians are local and accessible. The City says it works hard to ensure that customer appointments are kept and on time and representatives are available to assist customers with their questions and technical support needs. FairlawnGig claims its technicians spend extra time teaching customers about their services.

City officials candidly admit they were willing to build and launch the municipal fiber service even if it did not recoup its original investment for years to come. That is because the municipal fiber network has benefited the city in other ways:

  • It has attracted new residents to town and kept them there.
  • Several businesses launched or moved to be within FairlawnGig’s service area. Most are white collar businesses, such as IT firms, software and hardware engineers, and consultants.
  • A new orthopaedic hospital is being developed in the town, in part because FairlawnGig can provide connectivity up to 100 Gbps for things like medical imaging and video conferencing.
  • As businesses move in, so do workers looking for a shorter commute. Property values in the town have increased and realtors make a point to alert would-be buyers when a property is within FairlawnGig’s service area.

In short, Fairlawn officials see providing internet access as more than just a profit center. It is a public service initiative that is paying back dividends that will eventually exceed the $10 million investment taken from the city’s general fund to build the network. Taxes did not increase as a result of FairlawnGig either. Now other towns around Fairlawn and the city of Akron itself are showing interest in how to join forces to expand the public service well beyond Fairlawn’s town borders.

WOIO in Akron covered FairlawnGig back in January 2019 in this report explaining how a publicly owned fiber to the home service was delivering gig speed to this northeastern Ohio community. (2:31)

Canadian Mobile Operators Raking in Fat Coronavirus Profits With Bill Shock

Canadians are opening cell phone bills that have skyrocketed as a result of usage from work-at-home initiatives to stop the spread of COVID-19, a health crisis that is also fattening profits at some of the country’s biggest mobile operators.

Rosette Okala of Pickering, a suburb of Toronto, was stunned to receive her Rogers Mobile bill this month for $540, up from the usual $160 she is used to paying.

“I almost dropped,” Okala told CBC News. She is a pharmaceutical employee whose job requires being online. Her 12-year-old son has been online more too, doing schoolwork.

The part of Pickering where Okala lives does not have wired internet service available, so she relies on internet service from her mobile provider, like hundreds of thousands of other Canadians do. Pickering is hardly a tiny town either. With a population of 92,000, the city is immediately east of Toronto in the Durham Region. Despite that, there are sections of the city still waiting to get wired internet service.

Using the internet in areas considered to be “rural Canada” by providers is not cheap. Rogers offers customers a $145/mo wireless internet plan that includes 100 GB of usage. Customers that exceed that do so at their peril, facing overlimit fees of $5/GB.

“This is just a slap in our face,” said Okala. “We [rural customers] pay huge bills just to be able to do something basic that most people take for granted.”

Okala hoped her employer would help cover her phone bill. Rogers has been reluctant to help, despite a showy ad campaign from the cable and wireless giant promising customers “we are in this together and are here to help.” When it comes to billing matters, talk is cheap and help is hard to find.

Pickering, Ont.

Okala said she spent hours on the phone with a Rogers representative trying to negotiate a lower bill. Rogers eventually offered a paltry $30 credit and a payment plan to pay off her balance. A second attempt resulted in an improved offer of $100 credit, an upgrade to a different service plan, and 50% off monthly service fees for 24 months. But Rogers still wanted to be paid at least $440, at least until the CBC pointed out it would share Okala’s story with the rest of Canada for free. Rogers suddenly offered to take another $230 off Okala’s March bill and give her the mobile hotspot hub she was leasing for free.

John Burbidge, a University of Waterloo economics professor in North Dumfries living in a town of 10,000 near Cambridge, Ont., got schooled in the mobile broadband business by Bell Mobility, which sent him a bill for $650, including nearly $400 in usage charges. Burbidge was confused by an email from Bell, Canada’s largest phone company, which claimed it was waiving overlimit usage fees for customers during the pandemic. He missed the fine print advising that fee waiver only applied to Bell’s DSL and fiber wired customers, not wireless data plans. Burbidge argued it was unfair to exempt some customers from usage fees, while continuing to charge them to others.

“If rural Canadians are expected to work and do school work from home, decent and reasonably priced access to the internet is a basic right. Bell should not be allowed to gouge rural customers,” Burbidge told Canada’s public broadcaster.

Bell told the CBC the company was offering customers an extra 10 GB on customer data allowances and a $10 credit off the cost of using a mobile hotspot connected to Bell’s mobile network. As a courtesy, Bell agreed to credit Burbidge’s account $350 for March and take 60% off overlimit fees in April, but he is on his own after that. Burbidge’s current plan charges $180 a month for up to 100 GB a month, with a $5/GB overlimit fee.

“It’s really sad to hear,” Laura Tribe, executive director of consumer group OpenMedia told the CBC. “Data caps are definitely unnecessary. We see them as a punitive mechanism to make sure that people suppress the amount of data that they use and overpay when they go over what they want.”

The Canadian Wireless Telecommunications Association (CWTA), an industry lobbying group representing the country’s wireless companies, claims data caps are necessary to prevent overwhelming Canada’s wireless networks, which could make calling 911 impossible. But voice calls can travel over different spectrum than data traffic, and no wireless company or the CWTA would admit if their networks were close to being overhwhelmed by traffic as a result of millions of Canadians working from home.

Tribe says the traffic spikes that have come from the coronavirus crisis prove her point. Even with data usage at all-time highs, no provider is claiming their network is close to capacity. That should call into question whether there is any need at all for mobile data caps.

“They’re a way to increase profits and suppress the usage of the networks,” said Tribe.

Charter Spectrum’s “False Ads” Cost Windstream $3-5 Million in Profits, Expert Witness Testifies

Windstream Communications lost between $3.2-5.1 million in lost profits because of a 2019 false advertising campaign run by Charter Communications in areas where the two companies compete for internet customers, claimed an expert witness in a court hearing to determine the damages Charter must pay.

In December, U.S. Bankruptcy Judge Robert Drain issued a summary judgment finding Charter responsible for sending out misleading advertising fliers that violated the federal Lanham Act and false advertising laws in place in some states.

“Shortly after Windstream filed for Chapter 11 protection, Charter commenced a false and misleading advertising campaign designed to cause irreparable injury and damage to Windstream’s reputation and business,” the original lawsuit filed with the U.S. Bankruptcy Court for the Southern District of New York stated. “Charter targeted Windstream customers in Alabama, Georgia, Kentucky, Ohio, Nebraska, and North Carolina, which are several of Windstream’s top performing states.”

“On the envelopes for the advertisement, Charter intentionally utilized Windstream’s trademark and signature color pattern to mislead Windstream customers into believing that the advertisement came directly from Windstream. Indeed, Charter’s advertisement stated that it was ‘Important Information Enclosed for Windstream Customers.’”

The offending Charter flier seems to suggest Windstream is going out of business.

A later investigation found Charter sent at least 800,000 mailers to customers in service areas where Windstream competes with Spectrum.

Jeffrey Auman, executive vice president of sales and marketing at Windstream Communications, told the court last week the false ads directly harmed Windstream’s reputation with its customers, with some left believing the phone company was ceasing operations because of its bankruptcy filing. Auman argued it was fair for Charter to pay damages covering Windstream’s legal expenses to file the lawsuit and cover its advertising and promotional expenses incurred to rebut the ads and retain customers.

A company-provided expert witness testified Windstream lost customers and between $3.2 and $5.1 million in lost profits. Spectrum’s ad campaign also created long term negative “fear, uncertainty, and doubt” about Windstream’s health and ability to service customers. The witness claimed Spectrum’s fliers ended a “growth streak” for the phone company and has caused new customer projections to fall behind.

“It was a big deal with us,” Aubrey testified. “Word of mouth in these small communities means a lot.”

Windstream told Judge Drain the company has spent more than $4.3 million on service credits, promotional retention discounts, and cost-free upgrades to keep customers happy.

Charter has countered Windstream’s customer losses come from its inferior technology, which makes Windstream’s speeds slower and less competitive. Spectrum has upgraded internet customers in the midwest and parts of the southern U.S. to up to 200 Mbps for its Standard internet plan, which is much faster than what Windstream offers many of its DSL internet customers.

Idaho Students Harmed by Unreliable Broadband; State Senator Wants Internet to Be Public Utility

Phillip Dampier April 29, 2020 Community Networks, Public Policy & Gov't, Rural Broadband Comments Off on Idaho Students Harmed by Unreliable Broadband; State Senator Wants Internet to Be Public Utility

Sen. Nelson

Idaho internet access is inadequate to support tele-learning services, hurting the state’s ability to move towards online education as a result of the COVID-19 pandemic.

State Sen. David Nelson (D-Boise) told his constituents that “now, more than ever, Idahoans need reliable broadband.”

At the moment, they are not getting it.

Nelson:

“The Moscow School District is providing instruction online for middle and high school students but about 20% of students don’t have strong enough Wi-Fi or can’t afford the internet access needed for classes at home. To make online learning available to all students, Moscow School District has turned school parking lots into Wi-Fi hot spots and is providing wireless hot spots to some students. In the Potlatch School District, they have distributed 300 laptops and Chromebooks, but 20% of kids don’t have internet access. Potlatch is also creating Wi-Fi hot spots for some families.

“In mountainous Benewah County, St. Maries School District has a harder job. Cell service is spotty and line-of-sight internet connections are hard to come by. More than 70% of St. Maries students and teachers do not have access to reliable internet. The school district found they must send home weekly packets because they cannot do online instruction. St. Maries teachers work in their classrooms daily because neither they nor their students have reliable internet for online teaching. Instead, the teachers spend their time creating the paper worksheets for families to pick up.

“St. Maries students only get packets, while other schools teach online. Does that live up to Idaho’s constitutional requirement of a general, uniform, and thorough system of public, free common schools? Idaho needs more investment in broadband infrastructure, but we aren’t going to be able to fix this in the midst of a crisis. According to Kamau Bobb Google, educators must address the needs of diverse learners. I wish we had been investing in broadband infrastructure instead of cutting taxes significantly when times were good.

“Our limited, unreliable broadband is often overtaxed. Internet that was already struggling to serve our communities is now unable to keep up with the unprecedented demand from educators, people working from home, families ordering groceries online, and nearly every other Idahoan using the web to stay connected. Even the time to clear a credit card payment at a grocery store has increased.”

Internet access in rural states like Idaho is mostly a mixture of cable internet in larger cities and towns and DSL service in suburban areas. Rural communities often have to rely on wireless internet, where available, or satellite internet access. A few communities have a co-op utility that doubles as a broadband provider, but in most cases rural Idaho only gets what CenturyLink, Frontier, and other telephone companies are willing to provide.

“Last year, the governor’s Broadband Task Force found that North Central Idaho has the least access to functional broadband in the state,” Nelson noted. “Since schools have closed due to coronavirus, North Idaho school districts are experiencing the consequences of Idaho’s lack of investment in broadband infrastructure.”

After years of trying to convince private telecom companies to do the right thing by their customers and expand internet access, Nelson points out the current COVID-19 crisis is a perfect example of why states like Idaho can no longer afford to wait.

“The coronavirus pandemic has made it more obvious than ever that reliable internet access is a public utility that all Idahoans need,” Nelson said.

Rural New York Legislators Slam Charter Spectrum’s Request to Limit Rural Broadband Funding

With an estimated 90,000 New Yorkers stranded without broadband service, a proposal from Charter Communications to block funding for future projects is coming under fire from a bipartisan group of rural legislators.

Charter, which does business as Spectrum, filed a request with the Federal Communications Commission to exclude certain census blocks for funding under the agency’s new $20.4 billion Rural Digital Opportunity Fund (RDOF). The cable company claims it intends to privately fund expansion of internet service in those areas, and does not welcome government-subsidized competition.

“Good cause plainly exists to grant the waiver to avoid overbuilding areas in which Charter has already begun the process of deploying service and is investing private capital well in excess of $600 million,” company officials wrote. “This will ensure scarce universal service support is deployed to close the gap/digital divide in actually unserved areas. The commission has previously granted rule waivers where, as here, the purposes of the rule would be disserved by its strict application, and where waiver would affirmatively serve the public interest.”

Many of the rural homes Charter claims it intends to serve have been waiting for internet access for well over a decade. Many were hopeful that wait would end shortly after the cable company agreed to expand service to an additional 145,000 rural New York households as part of an agreement with state regulators approving its merger with Time Warner Cable. But a March 2020 audit conducted by the Comptroller of New York found Charter was not meeting its commitments:

“[…] It has been over three years since the merger was approved. Network expansion should have already been provided to approximately 126,875 unserved or underserved premises based on the 2016 Commission Order approving the merger. As of July 2019, Charter had only extended its network to 64,827 premises. Based on the original Order, 62,048 additional customers should have received access to these services. Charter now has until September 2021 to complete the network expansion of 145,000 premises previously scheduled to be completed by May 2020.”

Barrett

Some New York legislators believe Charter is out of line asking the FCC to exclude funding for other rural broadband projects while taking its time meeting its own commitments.

“Charter’s waiver request is simply self-serving and will in no way benefit the residents of upstate New York who, even in the year 2020, are struggling to access adequate broadband by any provider,” Rep. Didi Barrett (D-Hudson) wrote in a letter to the FCC. “Charter’s petition is a blatant attempt to reduce competition and leave consumers with no choice but to wait around for Charter to finish a job that should already be complete. In Upstate New York, tens of thousands of residents and businesses are still waiting for internet service because of Charter’s years-long effort to renege on their obligations to New York State and the people who live in rural communities. We must continue to call Charter out until every household and business is served as planned under their agreement with New York State.”

Republican congresswoman Elise Stefanik from Schuylerville agrees with many of Barrett’s views, blasting Spectrum for seriously delaying its rural rollout commitments. Stefanik worked with FCC Chairman Ajit Pai to change the qualification requirements for the RDOF program, which originally would have excluded New York from receiving funding. If the FCC adopts Charter’s request, it would block much of her district from receiving broadband funds, either because Charter previously indicated it would (eventually) offer service or because the state previously supplied broadband subsidies, which would also seem to disqualify RDOF grants.

“I have heard directly from constituents and local elected officials that this decision would have a severe impact on their ability to gain rural broadband access, which is essential, especially during this time of crisis,” Stefanik said. “Charter’s request would exclude parts of the North Country from this critical federal funding, and I will work with my upstate colleagues and the FCC to keep it available.”

WNYT in Albany reports rural New York communities like Stillwater have waited years for Charter Spectrum to provide broadband service. The addresses Spectrum grudgingly will serve in the area are routinely quoted installation fees starting at $8,000. (2:16)

Search This Site:

Contributions:

Recent Comments:

Your Account:

Stop the Cap!