More than 5,000 residents and businesses living on the island Bailiwick of Jersey now have a choice of two Internet Service Providers – both supplying gigabit fiber optic broadband.

Jersey Telecom, a government-owned provider, has been removing obsolete copper wiring and replacing it with fiber to the home service that should reach the entire island by 2015. The fiber network is open to all competitors. JT charges £59.99 ($97.25) per month for gigabit speeds, but now caps usage at just 100GB a month. Overlimit fees are around 50c per GB between the hours of 8am-midnight. Usage is unlimited during off-peak hours.

In addition to JT, Jersey customers who live on the remote Channel Island, a British Crown Dependency off the coast of France, can now also choose Sure Jersey, a privately owned ISP that offers unlimited use plans.

The fiber optic network is spreading to other Channel Islands, with significantly populated parts of Guernsey set to receive a fiber upgrade next.

Using traditional Return On Investment standards, Jersey would barely qualify for basic DSL service. The island has a population of just 100,000 residents, some spread far and wide in remote locations. Basic DSL service was supplied to customers in more densely populated communities, but speeds were often slow and congestion became a major problem, especially at night.

The local government determined Jersey’s broadband needs could best be met by upgrading to government-owned infrastructure that private businesses could lease to sell service. Much like public roads benefit private companies that use them to transport goods, JT’s fiber network is designed to help bolster the island’s digital economy.

Since the introduction of gigabit fiber, new digital startups have launched on the island and others have moved their digital businesses to the fiber-enabled island. FeelUnique, launched from Jersey, has now become Europe’s largest online beauty retailer, employing over 150. Other businesses on the island have launched software ventures for the health care and education markets, banking/investment products and services, and 3D printing ventures. Having a wide broadband pipe has helped anchor digital businesses to the island because moving elsewhere leaves many with little better than substandard DSL or an enormous price tag for a customized new fiber build.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/JT Fiber Has Arrived 2013.mp4[/flv]

Residents of Jersey talk about how fiber broadband has changed their online experience. (2 minutes)

 [flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Digital Jersey Limited – Vision 2014 from Digital Jersey.mp4[/flv]

Digital Jersey released this video showing the group’s vision on how to leverage gigabit fiber broadband to boost the island’s digital economy in 2014. (3 minutes)

AT&T and Verizon are among the biggest tech company spenders in Washington, paying millions every quarter to lobby federal and state lawmakers on how they can make life easier for the telecom giants.

AT&T increased their lobbying budget by a whopping 23 percent in the third quarter, easily beating year over year spending of $3.5 million in the third quarter of 2012. In just three months this year, AT&T spent $4.3 million lobbying lawmakers on regulatory relief, retiring the rural landline network, reform of cell tower placement policies, and trying to keep the FCC from gaining new oversight powers.

Verizon Communications had lobbying costs of $3.09 million last year at this time. This year, it reduced that amount by two percent, spending $3.04 million. But Verizon Wireless upped its political spending by 19 percent, from $1.1 to $1.2 million. Taken together, Verizon spent a collective $4.24 million on lobbying in the last three months. Verizon lobbied on some of the same issues AT&T did.

In contrast Google spent $3.4 million, Facebook spent $1.4 million, and Microsoft spent $2.2 million.

“Once again the lobbying disclosures demonstrate the sad truth about the state of our democracy,” said John M. Simpson, Consumer Watchdog’s Privacy Project director. “When the government is open for business, policymaking is all about who has the cash and is willing throw it around.”

USA Today reported Verizon has also once again achieved a 0% effective tax rate during the past 12 months, which means any owed taxes will be offset by a variety of accounting tricks:

A big reason that Verizon’s effective tax rate is so low, coming in at a negative 4.8%, is largely due to accounting. The company’s sped-up depreciation, severance and pension costs are large credits that contribute to pushing the company’s taxes down, says Jonathan Schildkraut of Evercore. But there’s also a distortion caused by the company’s 55% interest in Verizon Wireless. Vodafone, which owns 45% of Verizon Wireless, pays taxes on its share, but the entire profit is reported on income. Adjusting for this, Verizon’s effective tax rate is closer to 30%, the company says. Verizon is buying Vodafone’s stake, which will eliminate the issue in the future. Similarly, real estate investment trusts have low effective tax rates because they pass profit to shareholders, who then pay the taxes.

The question for investors is whether or not companies paying low effective tax rates might, eventually, attract the attention to regulators. “They are slow at getting at these issues,” Yee says.

Powell: Who cares?

As America continues to face further declines in its broadband speed ranking, reporters looking for answers to how the cable industry plans to do better got a direct answer this week from Michael Powell, the former chairman of the Federal Communications Commission and current president and CEO of the National Cable & Telecommunications Association (NCTA), the country’s largest cable lobbying trade group.

Question: Can you respond to studies that have found the United States trailing many countries in terms of the speeds of Internet services offered to consumers?

Powell’s answer: “I live in the United States of America. It doesn’t matter to me what they’re doing in Lithuania.”

FiOS Have’s and Have-Nots

Despite complaints earlier this month from Boston Mayor Thomas Menino that Verizon’s latest ad for FiOS was filmed in Boston — a city that lacks the fiber optic service, not every Massachusetts community is so unlucky.

Stop the Cap! reader John C. wrote to alert us that the town of Raynham will get Verizon FiOS service despite Verizon’s long-standing intention not to further expand the fiber service outside of areas already committed.

It turns out Verizon’s partial buildout of fiber optics in the area was reason enough for Verizon to complete wiring Raynham with fiber and seek a formal franchise agreement from the town’s board of selectman. Phil Santoro, a Verizon spokesman, noted the company did the same thing a year earlier in Medford.

Raynham residents will be able to buy voice, data, and television service from Verizon, in direct competition with Comcast.

Verizon plans to offer residents FiOS TV service, FiOS Internet service and the FiOS Digital Voice unlimited calling plan starting at $89.99 a month, with a two-year contract.

Meanwhile, the city council of Quincy is desperately seeking cable television competition after hearing complaints from senior citizens they can no longer afford Comcast’s prices.

The city council has repeatedly reached out to Verizon in hopes the company will bring FiOS to town, but to no avail.

Comcast is in the seventh year of its 10-year franchise agreement in Quincy and is unlikely to change much when it requests a renewal.

City Solicitor James Timmins believes the reason Verizon isn’t interested is the fact “it costs the company about $1,500 to hook up each home.” Timmins also claimed “Verizon knows that in a few years FiOS (TV) is going to be obsolete.”