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The Broken Promises of Big Telecom: ‘Fiber for All’ Funding Diverted for High Profit Wireless

Phillip Dampier November 21, 2012 Astroturf, AT&T, Audio, Broadband Speed, Comcast/Xfinity, Community Networks, Competition, Consumer News, Data Caps, Public Policy & Gov't, Rural Broadband, Verizon, Wireless Broadband Comments Off on The Broken Promises of Big Telecom: ‘Fiber for All’ Funding Diverted for High Profit Wireless

The United States once led the world in Internet speed and infrastructure. Now, according to one estimate, it ranks at about 29. Brooke talks to David Cay Johnston, journalist and author of “The Fine Print: How Big Companies Use Plain English to Rob You Blind,” who says that companies continue to raise prices and engage in lobbying efforts to rewrite regulation, while avoiding necessary upgrades to infrastructure that would speed up America’s Internet.  Companies promised major fiber broadband upgrades, but diverted that money to building a wireless conglomerate instead. (6 minutes)

33 New Hampshire Communities Getting DSL Expansion from FairPoint

Phillip Dampier November 20, 2012 Broadband Speed, Competition, Consumer News, FairPoint, Public Policy & Gov't, Rural Broadband Comments Off on 33 New Hampshire Communities Getting DSL Expansion from FairPoint

FairPoint Communications will introduce DSL service across 33 New Hampshire communities that either have incomplete coverage or no broadband at all.

At least 4,000 homes and businesses will gain access with financial assistance from the FCC’s Connect America fund.

FairPoint says it has invested $189 million in network infrastructure since purchasing northern New England landlines from Verizon Communications. That investment has targeted broadband improvements through fiber middle mile networks and extended DSL service with Ethernet and DSLAM equipment. The last mile installation to individual homes and businesses requires a suitable return on investment. If a provider cannot recoup expenses within a few years, those failing the test will not receive service. The Connect America Fund covers some of the investment costs, bringing rural areas closer to the return expectations providers have.

FairPoint earlier promised to reach 95 percent of New Hampshire with broadband service, with similar goals in Maine and Vermont.

FairPoint customers in larger northern New England communities can also expect eventual speed upgrades as the company continues to work on deploying next generation DSL technology.

Cable competition in the region is spotty, with Comcast and Time Warner Cable providing the bulk of service, mostly in the largest communities.

The communities slated to see DSL service (or extended service into previously unserved areas) include:

Alexandria, Barrington, Bartlett, Canterbury, Concord, Conway, Cornish, Croydon, Dorchester, Dover, Durham, Effingham, Epping, Epsom, Franklin, Gilmanton, Goffstown, Grantham, Jackson, Lee, Litchfield, Manchester, Meredith, New Hampton, Nottingham, Orange, Ossipee, Pembroke, Richmond, Sanbornton, Strafford, Tuftonboro and Wolfeboro.

Another Lafayette Headed for Fiber-Fast Broadband; Comcast May See Competition in Indiana

Phillip Dampier November 20, 2012 Broadband Speed, Comcast/Xfinity, Community Networks, Competition, Consumer News, Metronet, Public Policy & Gov't Comments Off on Another Lafayette Headed for Fiber-Fast Broadband; Comcast May See Competition in Indiana

Lafayette, Ind. is just one city council vote away from securing fiber broadband competition for the community of 67,000 residents in west-central Indiana.

Fiber provider Metronet is interested in providing broadband, television, and phone competition to business and residential customers who currently have one choice for cable: Comcast. Frontier provides satellite and DSL broadband to parts of the community as well, but neither stands a chance of competing against the fiber speeds Metronet is capable of providing Tippecanoe county.

Two previous city council votes were in favor of the Metronet project, which will not cost the city a dime.

“The city is issuing bonds that private investors are going to buy,” city counselor Eddie VanBogaert told The Exponent. “We have these people already lined up. This company is going to be able to get a tax break effectively on putting about $60 million worth of fiber infrastructure across the city.”

Metronet intends to start operating in more populated parts of the community and build its network further out over time. The city will hold a right of refusal on the lines, which means if Metronet were to fail or seek to sell its operations, the city can control who ultimately runs the fiber infrastructure. In the past, cable operators have ended up launching predatory price wars against new competitors, eventually buying them out and raise prices back to pre-competition levels.

The final vote by the city council will be held Dec. 3.

Stop the Cap! first reported on this venture in a piece published in January.

Charlotte’s Cozy Corporate Welfare Helps Time Warner Cable, Leaves Customers With the Bill

Time Warner Cable would like to thank the city of Charlotte and the state of North Carolina for the generous handouts of taxpayer-funded corporate welfare that helped make their newly-christened $82 million data center possible.

In return, Charlotte residents pay the nation’s highest cable bills, according to a piece in the Charlotte Observer.

Time Warner Cable maintains a cozy relationship with state and local officials — friendly enough to help win the company a state Job Development Investment Grant worth up to $2.9 million in public tax dollars in return for hiring 225 workers in their eastern national data center. Critics contend Time Warner was going to need to hire workers with or without the grant.

According to WhiteFence, the average Charlottean paid $51.18 for standalone high-speed Internet services in October.

The group surveys pricing from utility providers nationwide and builds a national price index for different services, including broadband.

No city pays higher prices that Charlotte, N.C., according to the group. The WhiteFence Index also shows Internet pricing is rising steadily, up from less than $40 charged this past May.

The Libertarian Party of North Carolina is probably the biggest opponent of corporate welfare handouts in the state:

By taking money from the taxpayers and giving it to businesses in the form of “corporate incentives,” our state and local governments are playing a game of Reverse Robin Hood. They are robbing from the poor and giving to the rich. The Libertarian Party of North Carolina denounces all corporate welfare programs as fiscally irresponsible and calls for their immediate abolition.

Millions of dollars are taken every year from our taxpayers and stashed into various funds and programs at all levels of government. The purpose of these funds is supposedly to attract businesses to our area and help them expand, under the theory that this will create jobs and promote general prosperity.

This theory has two fundamental defects. First of all, the government has no place in deciding which jobs should be created and maintained. A free market is infinitely better equipped to respond to the economic needs of businesses and consumers. When the government starts funding already successful companies, it becomes harder to compete in the marketplace if you have a new company with an innovative idea or service.

More directly, we can not have general prosperity until we rid ourselves of our excessive tax burdens. The first cause of economic prosperity is when consumers have money to spend. But we have less and less spending money, as governments take more and more from our paychecks. And then they use that money taken from us as legal bribes to entice their corporate favorites to come to North Carolina.

Charter Cable Sniffing Around Optimum West; Could Acquire Western Systems from Cablevision

Cable customers in Montana, Colorado, Utah, and Wyoming can be forgiven if they cannot remember the name of the cable company that provides them with service. Originally Bresnan Communications, then Cablevision’s Optimum West, customers are now learning Charter Communications could soon be their new service provider.

James Dolan, CEO of Cablevision Industries, last week acknowledged he had received “unsolicited interest” in the cable properties in the western United States, and told investors he may sell the systems for an undisclosed amount.

Cablevision acquired the systems formerly owned by Bill Bresnan two years ago, investing tens of millions in upgrades to bring them closer to modern standards. Cablevision has received praise from many subscribers for improved service and more competitive rates. But a sale could change that. Charter Cable is perennially rated among the worst cable companies in the United States by Consumer Reports.

Should Charter acquire the systems, it will also inherit a major tax fight initiated by Cablevision, protesting its Montana property tax bills for 2010 and 2011.

Cablevision is upset tax authorities defined the Optimum West operation as a single telecommunications company, not a cable company. That decision effectively doubles its tax rate from 3 to 6 percent — the same rate CenturyLink pays in the state.

If an appeals process finds the state erred in its decision, 29 counties will have to refund millions that Cablevision paid under protest.

Tax officials warn if Cablevision’s tax rate is cut in half and other companies reap similar rewards, homeowners and small businesses will cover the difference. Revenue director Dan Bucks warned that could mean annual tax bills $110 higher on a home assessed at $200,000.

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