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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)

DirecTV’s Expensive ViaSat Satellite Broadband: Up to 25GB a Month for $119.99

Phillip Dampier November 21, 2012 Broadband Speed, Consumer News, Data Caps, DirecTV, Rural Broadband, ViaSat Exede, Wireless Broadband Comments Off on DirecTV’s Expensive ViaSat Satellite Broadband: Up to 25GB a Month for $119.99

Rural Americans already depend on their satellite dish to receive hundreds of channels of television entertainment, but broadband over satellite has traditionally been slow, limited and very expensive.

There is little evidence things will change quickly for those without access to traditional cable or phone company DSL. But the launch of new, higher capacity satellites, have at least increased satellite broadband speeds and eased back on extremely low usage caps under a provider’s “fair access policy.”

This week, Viasat’s Exede broadband pricing through DirecTV was formally announced. The “up to 12Mbps” service will cost:

  • $39.99 for 10GB of monthly usage;
  • $69.99 for 15GB;
  • $119.99 for 25GB

These discounted prices are good for the first year of a two year contract. Prices increase $10 a month for the second year. Contract customers will have the $49.99 installation fee credited back on a future invoice.

There is one significant improvement: the satellite service removes the data cap between 12 midnight-5am daily – good for automated downloads, software updates and any other high bandwidth applications.

Customers have until Jan. 31 to sign up for the promotion.

 

Wall Street Gives Thumbs Down to AT&T U-verse, Broadband Upgrades: Too Expensive

Phillip Dampier November 21, 2012 AT&T, Broadband Speed, Competition, Rural Broadband, Wireless Broadband Comments Off on Wall Street Gives Thumbs Down to AT&T U-verse, Broadband Upgrades: Too Expensive

Wall Street pans AT&T’s plans to spend billions to upgrade and expand its U-verse service.

Wall Street credit ratings agencies are unhappy with AT&T’s plans to increase spending on its broadband network to upgrade U-verse speeds and provide the fiber to the neighborhood service to more customers.

First, Moody’s placed AT&T’s “ratings on review for downgrade,” because AT&T’s plan to spend $22 billion to upgrade service and repurchase its own shares would throw AT&T’s debt level too high. Now Fitch Ratings has gone further, telling clients it has “downgraded” AT&T with a “negative outlook” because the phone company will spend money to provide U-verse to customers not profitable quickly enough to make the spending worthwhile.

Several Wall Street firms question the return on investment providing Internet service in rural areas where capital costs are higher. But many investment analysts are more positive about AT&T’s wireless service, which delivers substantial profits in much shorter time periods. Fitch called AT&T’s investments in LTE 4G service positive and important as Verizon Wireless continues to build and expand its own 4G LTE network.

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.

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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