[Editor’s Note: This past spring, big telecommunications interests in North Carolina tried to pass industry friendly legislation to keep municipal broadband competition out of the marketplace.  For the last several years, this industry has invaded state legislatures with the help of their astroturf front groups to try and pass legislation that puts all of the benefit in their corner and none in yours.  In North Carolina, an industry-written bill to lock out municipal broadband competition was introduced in both houses of the state legislature.  At least one legislator literally handed phone calls off to industry lobbyists when constituents called.

Too often, state politicians end up doing the business of big business, passing bills that hurt communities and people in their own districts, and hope constituents don’t find out what is really going on when anti-consumer legislation gets passed with a wink and a nod. All that’s left to do is cash that generous campaign donation check!

When municipalities in the state are told the duopoly of providers won’t provide a level of service communities need, they dared to build their own. HB1252 would have made that next to impossible. Your direct involvement in calling and writing North Carolina officials to let them know you understood what this anti-consumer legislation represented stopped the special interests in their tracks. You even outmaneuvered astroturf groups like Americans for Prosperity that tried to fool legislators into believing North Carolina citizens supported this terrible bill.

But like in all horror shows, what is left for dead often rises to terrorize the countryside yet again. We’ll be watching and waiting… and we’ll be ready. — Phillip Dampier]

HB1252 has officially been sent to a study committee as part of a huge omnibus study bill, HB945. The North Carolina budget has been passed and signed.

Unfortunately, it will be the Revenue Laws Committee which will control the study, which is run by Senator Hoyle and the rest of the big business boys in the House and Senate. The last version of HB1252 said it would go to study in both the Joint Select Committee on High Speed Internet in Rural Communities and Revenue Law, but it appears that the good ole business boys got their way. Who controls the study often controls the results.

The offensive language in the original bill that would have represented a direct threat to municipal broadband projects will die in study either way, but expect to see it resurface early in the next full session.

Version three of HB1252, A Bill To Be Entitled An Act Authorizing The Joint Select Committee On High Speed Internet In Rural Communities And The Revenue Laws Study Committee To Study Local Government Owned And Operated Services, is available to read here.

Enjoy your summer and prepare for battle in the coming months.

AT&T launched its U-verse service in parts of the Memphis area Monday, promising competition for Comcast, the dominant cable company in southwest Tennessee.  But some area residents expected much more to come from last year’s controversial industry-friendly statewide franchising law that promoters promised would bring lower prices for service across the state.

AT&T plans to offer U-verse within the next two years to subscribers in Arlington, Bartlett, Collierville, Covington, Dyersburg, Germantown, Lakeland, Memphis, Piperton and Ripley.  Monday’s launch only covers a portion of Memphis, and doesn’t cover large portions of downtown.

[flv width=”552″ height=”294″]http://www.phillipdampier.com/video/U-verse overview.flv[/flv]

An Overview of AT&T U-verse television service

Unlike traditional cable services, AT&T’s U-verse is typically delivered on a copper wire and fiber optic based Internet Protocol network.  Not as advanced as Verizon FiOS, which provides a fiber optic connection straight into the home, AT&T’s system still relies in part on traditional copper phone wire that runs from the pole to your home.  AT&T uses this approach to save money — company officials claim 100% fiber networks are too costly to build, and Wall Street investors balk at the up front costs.

AT&T uses its fiber network from the phone company office to individual neighborhoods to reduce the distance between the homeowner and the company’s equipment, which delivers a digital signal across the customer’s existing phone line.  Just like DSL, the shorter the distance between the customer and the telephone company equipment, the faster the speeds.  AT&T U-verse requires fast speeds to handle the video channels, digital phone, and broadband components that are part of the U-verse product line.

AT&T’s U-verse pricing ranges from $49 a month for an enhanced basic service package of 130 channels to $109 for 390 channels.  Premium channels are extra.  Plans include one AT&T set top box.  AT&T’s system will require a set top box for each television, at a monthly rental of $7 for each additional set, which can increase costs significantly for houses with several televisions.  An HD package runs $10 per month.  AT&T specials often include discounted or free installation, which takes between four to seven hours to complete and is only done on weekdays.  No contracts are required and customers can cancel at any time.

AT&T U-verse pricing in Memphis (click to enlarge)

AT&T claims that 70% of their customers choose a bundled package that includes television, broadband, and/or telephone service.

Company officials credited the passage of the Competitive Cable and Video Services Act, which became effective in July 2008, for paving the way for AT&T U-verse in the city.  AT&T’s praise also included crediting elected officials by name who supported the company’s lobbying efforts towards passage of that bill, which stripped cable franchising authority from local communities and adopted a statewide franchise system.

“We are thrilled to offer this innovative video choice to customers in the Memphis metropolitan area. As we celebrate this Memphis launch, I want to remember the contributions of the Tennessee General Assembly to open Tennessee’s video services marketplace to competition which is truly benefiting consumers. I would like to again thank Memphis area legislators including Speaker Emeritus Jimmy Naifeh, Senator Mark Norris, House Speaker Pro Tem Lois DeBerry, Chairman Ulysses Jones and the many others who supported competition and choice for consumers,” said Gregg Morton, president, AT&T Tennessee.

In turn, elected officials were quoted in AT&T’s press release:

“As Tennessee policymakers, our goal was to increase investment throughout the state and give consumers more choices and innovative new services,” said Senator Norris. “AT&T has been a great community citizen and the launch of AT&T U-verse also supports economic growth in Memphis.”

“We are excited that AT&T has brought their 100 percent Internet Protocol-based television service to Memphis,” said Chairman Jones. “Consumers in Memphis have asked for this and today, AT&T has delivered.”

<

p style=”text-align: center;”>AT&T Group President for Operations Support John Stankey discusses the company’s fiber strategy and provides an update on its progress in deploying its groundbreaking IPTV service, AT&T U-verse TV. (11 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.

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p style=”text-align: center;”>

The Municipal Technical Advisory Service, in association with the Tennessee Municipal League, noted that the lobbying effort to pass the Act was among the most expensive lobbying campaigns in state history.

This legislation is part of the national trend to diminish or eliminate the franchising authority of cities by granting cable companies the right to provide services without negotiating agreements with local governments.

In recent years, several cable companies operating in Tennessee permitted local franchise agreements to expire and refused to negotiate contracts with cities in anticipation that legislation would be adopted that would give cable companies great advantages in negotiating new agreements.

This tactic has paid off, as this law essentially grants a statewide franchise to these companies. Current franchise holders may now terminate their local agreements and seek a state franchise. A city that has previously negotiated a franchise agreement with one cable provider may be forced to permit other cable companies to serve its area under the same terms and conditions of the existing agreement

Such legislation has traditionally been advocated by telephone companies like AT&T and Verizon who are introducing video services in a bid to remain competitive with cable, which now offers its own telephone service.  Seen as a shortcut to negotiating with each individual municipality, the statewide franchise advocates claims it reduces the time and expense of bring needed competition to communities.

In addition to an expensive lobbying campaign, astroturfer FreedomWorks coincidentally showed up to promote their “Choose Your Cable” campaign, which in fact mirrors AT&T’s public policy advocacy of statewide franchising.

FreedomWorks Chairman Dick Armey commented, “FreedomWorks and our thousands of Tennessee members were proud to take part in the grassroots battle in Tennessee that finally saw this ground-breaking legislation through. We salute the Tennessee state legislature for its leadership in giving Tennessee consumers the advantages of increased competition in the video services market. The Competitive Cable and Video Services Act will offer cable consumers more choices and more innovation. And when businesses are forced to compete for customers, the customers win.”

Incumbent cable operators have had mixed reactions to such proposals, generally opposing them in areas where they would likely face the entry of AT&T or Verizon into their markets, and taking a more favorable approach in areas where they are unlikely to face a strong telephone company competitor.

In Tennessee, with AT&T itching to bring U-verse to state residents, cable operators launched a major opposition effort.

Local municipalities and many consumer advocates strongly oppose statewide franchising legislation, noting such laws remove local oversight over operators that do not perform responsibly and reasonably in their communities.  Additionally, in many states where statewide franchise bills have become law, local communities find franchise fees paid into state bodies that do not always pass on the full amount of that revenue to towns and cities.

Other common problems include:

• Threatened loss of local Public, Educational, and Governmental (PEG) local access channels;
• Reduced control over zoning regulations prohibiting digging and construction without permits;
• Loss of “free service” provisions that deliver cable programming to public schools, community centers, and town, police and fire halls at no charge;
• Loss of authority to help manage customer complaints.

In Tennessee, those opposing the legislation managed to get rid of statewide franchise fee administration, retained control over their existing PEG channels, and kept existing “free service” provisions, as well as reasonable zoning requirements.  However, the telecommunications industry did manage to include language banning municipally owned broadband networks in any area where an incumbent provider exists:

Memphis, Tennessee

Broadband joint venture authority.

The law creates the “Tennessee broadband deployment fund” to be used to promote the deployment of broadband service to rural areas. Guidelines will be developed to govern use of the funds, and grants will be available to local governments, cable companies, and telecommunications companies.

Cities now have the authority to enter into joint ventures with one or more third parties to provide broadband services. Joint ventures will be authorized only in areas that are historically unserved. City electric companies and electric cooperatives that participate in these joint ventures must still comply with other applicable statutes, and no revenues from utility operations may be used to subsidize the joint venture.

Cable operators also managed some concessions, and after the bill was signed into law, the state cable television association said they could live with the result.

Stacey Briggs, executive director of Tennessee Cable Telecommunications Association:

“This has been a good process – not easy, but good – and Speaker Naifeh should be commended for managing this outcome on a highly complex policy.

The cable industry, including Comcast and Charter, stood firm to make sure that our members were treated fairly and that AT&T and other companies were not granted advantages in the law. And, most important for consumers, Tennessee’s cable companies will continue making substantial and meaningful investment in Tennessee. Cable companies will continue to be the leader in bringing the most advanced products, services and newest technologies to consumers across the state.

AT&T and other companies have had the right to compete under local franchising rules for more than a dozen years. This new policy streamlines the franchise process, but it remains to be seen whether new entrants will compete in Tennessee.”

After all of the lobbying was done, the bill was signed into law, and the competition FreedomWorks was touting did arrive, the only thing missing from the consumer perspective was lower pricing.

Comcast, the local cable operator serving Memphis, seemed unfazed by AT&T’s entry into the area.

“We have competed successfully against satellite TV and other competitors for many years,” said Trevor Yant, vice president and general manager of Comcast of Memphis. “AT&T will become another player in the market with the services they choose to offer.”

One of the possible reasons for Comcast’s apparent lack of concern may stem from the reaction of many Memphis residents, who note AT&T’s prices are often higher than those charged by Comcast.

Among the mostly unimpressed reactions on local message boards:

mrhmeisme:
“$109.00 for 390 channels doesn’t sound like a very competitive price for a yet untested product. That’s some 20 percent higher than my current package that has all the channels that interest me. I suppose the proof will be in the pudding.”

Not_Chicken_Little:
“The website for U-verse presents the packages very poorly, and the prices don’t seem to be any bargain. But I am glad to see some competition, even though I don’t think they’ll make much headway. They need to show what they’ve got in a more attractive and understandable way, and cut prices – they don’t make me even think of switching with the lame sales pitch they have now.”

dmat7777:
“I just did a comparison of cost between my current Comcast and the U-verse. For comparable services, U-verse would be about $15 more per month for me. Some of the packaging/options might look better. For example, the Flickr photo being included, but I’m more concerned about how much $$$ per month. I don’t see AT&T taking this seriously. They seem to be doing the typical huge corporate thing, and not addressing the customers real concerns. No surprise there.”

ChickPea:
“$49 a month is too rich for my blood. When someone offers a decent package available for $25-$30 a month, I’ll be in.”

Oddly, the most common requests and complaints among Memphis area residents continue to be unanswered by Tennessee officials who were eager to support the Competitive Cable and Video Services Act, but left out a few things:

umbluegray:
“I want a plan where I can pick and choose the channels I want. I hate paying money to some of the basic channels like MTV, etc.”

ladydonald:
“I would be a big fan of a-la carte programming if it were ever enacted.

A-la carte channels are a niche that all of the providers are totally ignoring. Just think what would or could happen if those options were available.”

Hogs2009:
“It would be nice if you could pick out what cable channels you want and skip the rest. 90% of cable channels I do not want but am charged for. I mainly have cable for sports broadcasting channels, like ESPN, ESPN2, and ESPN Classic. I also like having local on cable because it is more clear, again because some games are on local channels. A-la carte is a great idea!”

Many residents were also suspicious of just how good a local competitor AT&T will be against Comcast, which itself took over providing cable service formerly provided by Time Warner Cable:

DanWesson:.
“Since Comcast bought out service from Time Warner locally, our service has been sub-par. I have had technicians out the house multiple times due to inexplicably losing certain HD channels and internet service that continually drops or can be agonizingly slow, on par with dial-up some days (particularly the hot ones, which is very strange). Their technicians on the phone and who come to the house have been polite and friendly, but they aren’t exactly going out of their way to fix the problem.

Comcast also charges me more than Time Warner did in addition to charging a “modem-rental” fee when the cable modem was free from Time Warner and I haven’t exchanged it since the change.

All that said, I’m not sure AT&T is the way to go as their corporate practices are the worst in the Telecom industry. Customer service has always been non-existent as the customer is merely a cash-cow. I’m all for competition in the marketplace, though. If Direct TV didn’t require a contract that might would be the route I went, but I’d still be reliant on one of these other worthless companies for internet.”

Not_Chicken_Little:
“On the website trying to check availability, U-verse tells me it cannot find my address! It suggests I try again using my AT&T phone number instead and directs me to continue to another screen. That screen, however, has no option to enter a phone number – only the address.

So I already see the level of competence I would have to endure if I choose U-verse. And like dmat7777, I see that the price for comparable service would be considerably higher than what I have now.”

apollo1377:
“AT&T can’t handle phone service. Do you think they can take on more? I think NOT.”

ima_cracker:
“If AT&T could deliver a more reliable package some would pay more to get it.

Instead they are mortgaging the company’s reputation for wireline services, which they continually deride, to try and emulate the cable companies financial model, which has produced a reputation for reliability that is the envy of nobody.

If instead of trying to destroy the value in wireline AT&T decided to pursue a higher quality, more reliable service for cable, they could at some point expect to capture a substantial amount of market share. But they assume the consumer is too stupid to make the distinction between one service and another.”

ChickPea:
“AT&T websites are a perennial problem. Ever since BellSouth was taken over by AT&T, getting any information on local service online has been a struggle. A site map would probably look like a birds nest.
That said, I’m loving my AT&T DSL lite! Cheap and plenty fast for a non-gamer.”

Daryl Kramp, MP for Prince Edward-Hastings, announcing broadband initiative in eastern Ontario

Daryl Kramp, Member of Parliament for Prince Edward-Hastings, on behalf of John Baird, Canada’s Transport and Infrastructure Minister, and the Honourable Leona Dombrowsky, Minister of Agriculture, Food and Rural Affairs for Ontario, announced that the construction of a 21st century broadband network is a step closer in Eastern Ontario. The Government of Canada and the Province of Ontario have together set aside up to $110 million for the project.

“Our Government is delivering on investments that help create jobs and build sustainable communities,” said MP Kramp. “The construction of a broadband network in Eastern Ontario will help to expand and improve local businesses and their services, and significantly boost our regional economy.”

“Delivering broadband to Eastern Ontario is a critical infrastructure investment that will bring more industry to the region and create the jobs that will help our towns and rural communities prosper,” said Leona Dombrowsky, Ontario Minister of Agriculture, Food and Rural Affairs.

“Today’s announcement marks a major step forward in helping to secure the future prosperity of Eastern Ontario. Having a high-speed, high-capacity broadband network is one of the most important assets that we can utilize to assist us in unlocking the ingenuity and creativity of our people and businesses. We are extremely grateful to both the federal and provincial governments for their tremendous financial support for this project,” said Ron Emond, Chair of the Eastern Ontario Wardens’ Caucus.

The governments of Canada and Ontario will each set aside up to one-third of total eligible costs of the project, to a maximum contribution of $55 million. Eastern Ontario Wardens’ Caucus (EOWC) Incorporated and private sector partners will provide the remaining funding, with EOWC Inc. contributing up to $10 million. The total eligible costs of this project are estimated to be $170 million.

Once completed, the network will provide broadband service to the residents and businesses in many of the counties of Eastern Ontario (Hastings, Peterborough, Renfrew, Northumberland, Haliburton, Frontenac, Lanark, Prince Edward, Lennox & Addington, the United Counties of Stormont, Dundas & Glengarry, the United Counties of Prescott & Russell and the United Counties of Leeds & Grenville) as well as the City of Kawartha Lakes.

Many of these areas already have rudimentary broadband service in the form of DSL and limited cable television penetration, but many DSL accounts are speed limited to 1-3Mbps, which the EOWC has determined to be woefully inadequate for broadband applications of the near future.

Canada’s broadband initiatives outside of the most rural communities are starting to define the bare minimum network speed at 10Mbps for downloading if the network is to sustain viability in the future.  With a goal of reaching up to 95% of eastern Ontario with broadband service in the next four years, a variety of technologies are likely to be considered depending on the population being reached.  Those living in the most rural areas are likely to find wireless service the most viable option, delivered with a form of WiMax.  Rural enclaves or neighborhoods outside of community centers may continue to be served by DSL service for some time.  But those in suburban and more urban community centers should have access to advanced forms of DSL, fiber optics, or high speed wireless service.

Many public Wi-Fi “hotspots” will be established at community gathering points, accessible to visitors at no charge.

The Government of Canada’s 2009 Economic Action Plan is accelerating and expanding the existing federal investment of $33 billion in infrastructure across Canada with almost $12 billion in new infrastructure stimulus funding over the next two years.

Through the 2009 Ontario Budget – Confronting the Challenge: Building Our Economic Future – the province is investing $32.5 billion in infrastructure for the province of Ontario over the next two years, including a $5 billion contribution from the federal government that will support more than 300,000 jobs and strengthen Ontario’s economy.

Flagler Beach, Florida

Another public-private Wi-Fi initiative has been launched, this one in Flagler Beach, Florida, between the city government and Bright House Networks, the area’s dominant cable operator.

The Wi-Fi network will provide consistent wireless access to the Internet in the downtown business and beach areas, running approximately from Highway 100 (Moody Blvd.) south to 2nd Street and from Highway A1A (Oceanshore Blvd.) west to Flagler Avenue.

City and local tourism officials celebrated the launch of the Metro Wireless Network in Flagler Beach by suggesting it will be a convenience for tourists looking for broadband access.

“It’s also a boost for tourism because promotions that are targeted to bring visitors to the area can tell them that they can connect during their stay in town and don’t have to fish around for access,” said Doug Baxter, president of the Flagler County Chamber of Commerce & Affiliates. “Everybody is stuck to a computer these days. (The free wireless service) is a lure.”

The service is creating some mild controversy in Flagler Beach, where residents have learned “free access” is provided on an unlimited basis only to existing customers of Bright House Networks’ Road Runner broadband service.

Non-subscribers will be granted two hours access per day, but that access is contiguous, not cumulative, meaning the moment one logs into the system, the two hour allowance starts running.  Checking your e-mail first thing in the morning assures when you log on later in the day, your free time will have expired and you will be told to purchase additional time.

The price?

1 hour – $1.95
1 day – $4.95
1 week – $14.95

All pay services are also sold in contiguous blocks of time.  For example, the one hour access fee expires one hour after paying for the service, even if you did not use the service for an entire hour.

JJ32, commenting on The Daytona Beach News-Journal website:

How exactly is this a boon for the tourism industry when tourists can only use it for two hours, or have to pay for the service? This also isn’t unique. Other money-hungry cable companies (looking at you AT&T) have this in other cities, and it looks like Bright House Networks has now joined this notorious lot. I agree that wireless access in public areas is important, but I am tired of pro-cable company press releases saying how much they’re doing for the community, when in reality they’ve just discovered a new way to rake in revenues.

Some area businesses are also unimpressed.

Carol Fisher, owner of the BeachHouse Beanery, said she isn’t likely to promote the city’s service. That because the coffeehouse’s customers can access the wireless network she’s provided for some time, Fisher said, and there are no hoops and hurdles or fees.

City officials are widely distributing a flier explaining the service in greater detail to residents and visitors.

The city of Binghamton, NY offers free Wi-Fi service to its residents

The city of Binghamton, in southern New York, had an innovative idea in 2008 — to offer citizens free wireless access to the Internet across the entire downtown region, with the help of a private-public partnership.  More than 20 “access points” were installed by the city and Plexicomm, LLC, a private partner in the venture.  The Binghamton WiFi service launched last summer and has caught on like wildfire.

Binghamton WiFi Repeater helps extend the network

In addition to its popularity, which has tripled since 2008 with more than 82,000 logins, it’s also affordable.  The city of Binghamton pays just $3,650 a month on a two year contract, with some of that cost recouped with advertising that users see when first logging into the service.  The state also covered 50% of the cost for the first year.  It’s also unique, because the city encourages area businesses and residents to consider helping spread the reach of the network with the purchase and installation of their own wireless repeater, priced at $199.  Wi-Fi signals are generally better outside than indoors, but businesses can add the wireless repeater, placing it near a window or door, and make that signal available to customers located well within the building.

Apartment owners and even charitable consumers who believe in sharing the good fortune of free Internet are purchasing and installing repeaters to improve reception for their tenants or neighbors.  In addition to the “viral network” of Internet enthusiasts sharing and expanding the network independently, the city has also been able to afford officially extending the network with additional rooftop wireless “access points.”

The project has enthusiastic support from city officials, who continue to dedicate resources to it even while other city services come under review for budget cuts.

It also allows the city to get important civic and public information out to city residents who use the service.

Binghamton’s Wi-Fi business model is based on the premise that the most successful Wi-Fi public-private partnerships are free and open to the public, sustained with “captive advertising” as customers login to the service.  Customers are forced to view ads for 15-30 seconds while logging in, giving advertisers a better chance of having their messages seen by the online user.

The service is also not designed to directly compete with private providers, which include Time Warner Cable’s Road Runner service and Verizon DSL.  Although the maximum speed of the network is comparable to DSL – up to 3Mbps downstream and 768kbps upstream, Wi-Fi can suffer signal-related slowdowns as well as congestion.  The service is designed for web page browsing and e-mail, and light access of higher bandwidth applications such as online multimedia.

Several videos detailing the ongoing development of Binghamton WiFi can be found below the jump.

… Continue Reading