Congressman Eric Massa’s proposed Broadband Internet Fairness Act helped drum up sufficient attention to the issue of usage caps, it helped postpone them, at least in some areas.
Congressman Eric Massa’s proposed Broadband Internet Fairness Act helped drum up sufficient attention to the issue of usage caps, it helped postpone them, at least in some areas.
One of the reasons these stories recapping and documenting this entire Internet rationing debacle is important is to come to understand Time Warner’s strategy in trying to implement usage caps. It was largely the same talking points wherever you went among the four impacted communities, and the reaction from customers was also always the same – outrage.
Local governments also rapidly learned they had their own problem – a complete inability to force the company to do what’s right for customers. In fact, communities that experienced this experiment, which is likely to return at some point in the near future, should begin contemplating competitive alternatives starting today, and not wait for the next hammer to fall on residential and business customers the next time Time Warner wants to drop a tiered billing system with extremely high overlimit fees on the towns and cities it serves.
Here’s a shocker. When the city of Wilson’s Greenlight fiber optic system was getting prepared to go live, Time Warner began flooding customers with special deals and offers to keep their business, including Road Runner, as low as $24.95 a month for two years, good only in the Wilson/Goldsboro service area of course. Road Runner customers were also offered double their existing speeds if they agreed to lock into a two year contract (making a switch to Greenlight prohibitively costly with early cancellation penalties). That offer wasn’t available to residents in nearby Raleigh, according to Brian Bowman, Public Affairs Manager of Wilson, a claim Time Warner disputes.
Needless to say, both sides claim they welcome competition, but only one of them is being honest about it. You can guess which.
Wilson, North Carolina first got attention on the state level about two years ago when they were well on their way to constructing a municipally run fiber optic network to deliver fast broadband, television, and telephone services to area residents. Time Warner, the incumbent provider, had bypassed Wilson for some of the highest speed upgrades. This is a situation not unknown to StoptheCap! readers like those in Rochester who face their own slower speed Road Runner service. Competition in nearby cities Buffalo and Syracuse have prompted Time Warner to upgrade speeds in those communities, but not in Rochester.
When Wilson city officials didn’t listen to the warnings from Time Warner officials, legislation introduced in the North Carolina legislature suddenly appeared which would essentially shut down Wilson’s project, and others like it, across the state.
The story below, from 2007, illustrates the divide, and the pro and con positions. Now, two years later, the same issues are back, along with a new industry-sponsored bill to once again find a way to get rid of municipal networks in North Carolina. Why StoptheCap! focuses on this issue is to help educate you about how this industry works, what alternatives are available, and give you the power to articulate to everyone why competitive, uncapped broadband service is essential to every community, at reasonable prices. This isn’t a right or left issue. It’s also one that should concern every person, no matter how much broadband service the use at the moment.
Wilson, North Carolina recognizes the transformation of the economy of North Carolina, as manufacturing moves overseas and new high technology businesses get underway. In the new technology economy, a local community like Wilson cannot afford to be left behind by an incumbent cable and telephone company that bypasses their area, missing out on the latest upgrades and enhancements. So city officials decided enough was enough and floated a bond issue, without using any taxpayer money, to construct their own fiber optic network to service residential and business customers with a state of the art broadband platform.
The result was Greenlight, the most advanced fiber optics system in the area, and it actually saves customers money while providing them with service far beyond what the other guys are selling (and they don’t have usage caps.)
But as we’ll learn in this report from WRAL in Raleigh, Time Warner sniffs at the competition, suggesting the expenses going forward will put the project in an untenable position. Wouldn’t it be better to shelve it now before you waste a lot of money? Wilson wonders if this will be the last word from Time Warner on their fiber optic project. Stay tuned… the picture will get snowier. A lot snowier.