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W.V. Does Broadband Mapping With Volunteers; No More Well-Connected Nation Money Flush

Phillip Dampier July 12, 2012 Broadband Speed, Competition, Consumer News, Editorial & Site News, Public Policy & Gov't, Rural Broadband Comments Off on W.V. Does Broadband Mapping With Volunteers; No More Well-Connected Nation Money Flush

West Virginia has returned to broadband mapping the old-fashioned way, with local volunteers fanning out across various areas of the Eastern Panhandle to get a true picture of what broadband service is like on the ground.

The Region 9 Planning and Development Council is helping coordinate the project, currently surveying residents in Berkeley, Jefferson, and Morgan counties. Residents and area businesses can complete a 22-question survey online or on paper, with copies available at most area public libraries.

The Council is trying to ascertain what specific neighborhoods still lack broadband service and also asks current broadband customers to rate the performance of their current provider — like Frontier Communications or a local cable operator. GIS analyst Matthew Mullenax told the Herald-Mail the survey gives a chance for customers to express their views about the speed of their connection, how reliable the service is, and how much it costs.

The West Virginia Broadband Deployment Council is effectively running a mapping “do-over,” to replace the highly-criticized broadband map originally drawn by Connect West Virginia, a state chapter of Connected Nation, that suggested 90-95% of the state had access to broadband when it was produced over three years ago.

Connected Nation’s 2008 map has been criticized for being over-optimistic about broadband availability in West Virginia.

Connected Nation has direct ties to some of the nation’s largest telecommunications companies, and despite its non-profit status, heavily lobbies legislators on broadband-related issues. The group largely relies on data voluntarily supplied by providers themselves, and critics accuse the group of doing little to verify the accuracy of that data. As a result, states are left with inaccurate, over-optimistic maps that suggest broadband availability is not a problem.

Broadband mapping projects can cost taxpayers millions, paid for by federal grants earmarked for mapping projects. But in communities like Paw Paw, W.V., the costs of not having broadband are just as high for local residents who find good-paying technology jobs largely unavailable in the community, which lacks adequate broadband service.

Mullenex hopes once an accurate map can be drawn, the state can create a strategic plan to push for broadband expansion in areas where service is lacking. The Council hopes its efforts will help pinpoint the areas of greatest need, and direct federal and state grant funding to improve broadband service for affected communities.

 

The West Virginia Broadband Deployment Council released this 2012 map. Areas marked in dark green have no broadband service of any kind, including wireless mobile broadband.

New Study Claims Verizon-Cable Company Pact Could Cost 72,000 Jobs; Threatens FiOS

Phillip Dampier July 11, 2012 Comcast/Xfinity, Competition, Cox, Public Policy & Gov't, Rural Broadband, Verizon Comments Off on New Study Claims Verizon-Cable Company Pact Could Cost 72,000 Jobs; Threatens FiOS

Verizon has a moratorium on further expansion of its fiber to the home service except in areas where it has existing agreements to deliver service.

A new study predicts an agreement between Verizon and the nation’s top cable companies to cross-sell each other’s products could cost up to 72,000 jobs in the northeastern U.S. and potentially threaten Verizon’s state-of-the-art fiber optics network FiOS.

The Federal Communications Commission (FCC) and the U.S. Department of Justice are continuing to review a proposed deal that would allow Verizon Wireless and companies including Time Warner and Comcast to cross-market each other’s products, which critics allege will eliminate competition and job-creating investment.

In the crosshairs of the deal: Verizon’s fiber to the home network FiOS, which has been stalled since 2009 when Verizon signaled it was “winding down” FiOS spending. According to the new report, produced by the Communications Workers of America (CWA), FiOS is at risk of being undercut by Verizon in favor of reselling cable-TV packages from Comcast, Time Warner Cable, and other cable companies. At worst, some critics of the deal contend Verizon will eventually abandon FiOS altogether.

The CWA has already seen the impact of Verizon’s declining interest in expanding FiOS as the company has left several major American cities in its service footprint, including Baltimore, Buffalo, Syracuse and Boston without fiber optic upgrades.

The CWA is calling on regulators to impose conditions on any deal between Verizon and cable operators:

  • Prohibit Verizon Wireless and the cable companies from cross-marketing in Verizon’s landline service areas;
  • Require Verizon to build the FiOS network to 95% of Verizon households in its landline footprint, including in rural and low-income areas;
  • Ensure that Verizon Wireless and other cable companies are not able to lock out competitors.

If Verizon were to maintain the expansion of FiOS to non-FiOS areas, about 72,000 new jobs would be created, the CWA report found. Job growth would be concentrated in eight Eastern states and Washington D.C.

“If done right, the proposed deal would add tens of thousands of new jobs and allow underserved communities access to high quality broadband service,” said Debbie Goldman, telecommunications policy director for the CWA. “The FCC has the obligation carefully to assess this deal in terms of likely job loss.  We expect regulators to reject this deal unless the parties accept conditions that would create jobs, increase network investment, and promote consumer choice.”

Those living in Verizon service areas without FiOS are already upset that they have been effectively bypassed by the phone company.

“It’s an arrogant stand,” Buffalo Councilman Darius Pridgen said in a phone interview with the Philadelphia Inquirer. Verizon has upgraded other areas in upstate New York with FiOS, but not financially distressed Buffalo. “It’s advertised in the city, but it’s not available in the city.”

In Philadelphia, Verizon obtained a 15-year video franchise agreement with city officials and the company agreed to extend FiOS throughout the city by 2016. But residents are complaining that Verizon’s definition of “extending service” has meant wiring cables down major thoroughfares, not wiring up every home that wants the service.

City Councilman James Kenney called for a public hearing in April amid complaints that Verizon was reneging on its commitment to city officials and residents.

Cole

Baltimore councilman William Cole thinks his city was skipped by Verizon for a reason, while more affluent areas are set to get fiber upgrades. Cole told the newspaper his constituents have called Verizon after seeing local ads for FiOS service, but are told they cannot get the service.

Verizon spokesman Edward McFadden said the decision to build the FiOS network was never popular on Wall Street. “We got hammered,” he told the Inquirer, “and our shareholders were punished for this.”

Now that the network is up and running, McFadden says Verizon retains a strong incentive to maintain its FiOS business because of the huge investment and the increased earnings it brings the phone company.

But the CWA’s Goldman remains convinced Verizon has broken its word with regulators and politicians who believed promises from Verizon and other telecom companies that passage of the deregulation-packed 1996 Telecommunications Act would inspire the dawn of a new competitive era in American telecommunications. Now instead, Verizon and the cable companies want to simply sell each other’s services.

“They wanted deregulation, and they said they would compete,” Goldman said. “This marks the beginning of the surrender, this truce.”

Mississippi Public Service Commissioner on Big Telecom $: “We Have a Coin-Operated Government”

Northern District Mississippi Public Service Commissioner Brandon Presley is unhappy with a new state law that will strip oversight over AT&T. Presley plans to personally file suit in Hinds County Circuit Court against the law, calling it unconstitutional.

“It violates the state constitution,” Presley said of the bill during an interview with the Daily Journal. “There’s no doubt AT&T is the biggest in the state, and this bill will allow them to raise rates without any oversight at all.”

House Bill 825 strips away rate regulation of Mississippi landline service and removes the oversight powers the PSC formerly had to request financial data and statistics dealing with service outages and consumer complaints. The law also permits AT&T to abandon rural Mississippi landline customers at will.

The bill’s author, Rep. Charles Jim Beckett (R-Bruce), told the newspaper he doubts the truth of Presley’s predictions that AT&T will raise landline rates in Mississippi and eventually abandon unprofitable rural sections of the state.

Unfortunately for Beckett, AT&T has a track record of raising rates on basic phone service about a year after winning deregulation in other midwestern and southern states. Beckett’s optimism about AT&T’s benevolence may be slightly colored by $2,500 in campaign contributions he received from the phone company and his extensive involvement with AT&T’s legislative agenda through participation in the American Legislative Exchange Council (ALEC), a group with direct ties to AT&T:

Presley

It seems that Russell and AT&T picked up the food tab for Rep. Jim Beckett and his wife at the ALEC meeting in at the Westin Kierland Resort in Scottsdale, Ariz. from November 30 to December 2, 2011.  AT&T also paid for a few rounds of golf for Rep. Beckett while there.  All said and done, AT&T paid $565.39 to cover expenses for Rep. Beckett and his wife on their three day trip to Scottsdale.

But that’s not all.  AT&T also picked up the tab for $151.70 worth of food and tickets while Rep. Beckett and his wife were at the Spring ALEC meeting in Cincinnati, OH in late April of 2011. AT&T also paid $22.62 for food for Rep. Beckett and his wife while he attended the 2011 Summer ALEC meeting in New Orleans.

The total amount AT&T gave to Rep. Jim Beckett and his wife in 2011 through Randy Russell?  $876.85.  The names of the Becketts appear a total of 36 times in AT&T’s 2011 lobbying report, most of it while the Becketts are at ALEC retreats.

Beckett

Presley has also launched a populist campaign against AT&T, last week telling a fired-up crowd at the Jacinto Festival he will fight AT&T’s bought and paid for law that lets them “raise your rates to whatever they want to.”

Crowds cheered support for Presley as he detailed how AT&T has bought influence with Mississippi state legislators, “just because they pass around money or fly you on jets or buy those big ribeyes.”

Presley has a past history of chasing after utility companies that hire expensive lobbyists and hand out extravagant gifts including golf outings, trips, and even opera tickets to legislators willing to vote their way.

He claims it has gotten so bad, corporate deep-pockets are now shutting out the voices of citizens.

“We have a coin-operated government,” Presley said. “That’s wrong.”

 

Frontier Promises to Make DSL Available to More of Their Rural Customers

Phillip Dampier July 10, 2012 Broadband Speed, Consumer News, Frontier, Public Policy & Gov't, Rural Broadband Comments Off on Frontier Promises to Make DSL Available to More of Their Rural Customers

Frontier Communications has agreed to bring ADSL broadband service to more of its rural customers, in return for collecting $775 per impacted household from the FCC’s new Connect America Fund, designed to help defray expenses associated with expanding broadband access.

Frontier appears to be the first major phone company in the country to sign on to the new broadband subsidy program funded by telephone ratepayers through a surcharge on their monthly bills.

“Today’s announcement by Frontier Communications represents the beginning of that new deployment: approximately 200,000 unserved rural Americans will get broadband for the first time,” said FCC chairman Julius Genachowski. “I applaud Frontier Communications for stepping up to the plate with its commitment to accelerate broadband build-out by increasing private investment in rural communities, in partnership with the Connect America Fund.”

The FCC will hand Frontier nearly $72 million in subsidies to help the company deploy DSL broadband in areas currently deemed not profitable enough to serve. Frontier says it expects to bring service to 92,876 new households across their national service area that never had broadband service before. The company specifically mentions expansions in Michigan, Oregon, Washington and West Virginia, but says customers in at least half of the states where it provides service will benefit from the broadband expansion funding.

Frontier claims it currently offers 80 percent of its customers broadband service, in part thanks to an investment of more than $1.5 billion by the company over the last two years, according to Kathleen Quinn Abernathy, executive vice president of external affairs.

Genachowski

Frontier is a major provider of traditional ADSL broadband service in its rural service areas, typically offering customers 1-3Mbps service. Customers in larger communities can purchase DSL service at speeds closer to 10Mbps, and the company also sells fiber to the home broadband over its acquired FiOS network in parts of the Pacific Northwest and Fort Wayne, Ind.

Under the terms of the Connect America Fund, participating providers must offer customers at least 4/1Mbps service, which means Frontier will need to make some upgrades in its rural network — most likely reducing the length of copper wiring between its central offices and customers.

Frontier has faced challenges maintaining broadband service in some areas, especially in states where the company acquired aging infrastructure from Verizon Communications. West Virginia, where Frontier is the dominant telephone company after Verizon left the state, is still suffering the after-effects of a derecho windstorm nearly two weeks ago. Frontier has brought in repair crews from as far away as New York to assist in clearing thousands of outage reports.

The company has also gotten some justice after Boone County authorities arrested two men for generator thefts. Frontier has been using generators to keep phone service up and running in areas without electricity, but has been victimized by generator thefts across the state. At least six other generators were stolen in New Martinsville in Wetzel County yesterday.

Frontier has a tip line for anyone with information about stolen equipment or copper theft: 1-800-590-6605.

Other telephone companies expecting to apply for broadband funding from the Connect America Fund include: Alaska Communications Systems, AT&T, CenturyLink, Consolidated Communications, FairPoint Communications, Hawaiian Telcom, Virgin Islands Telephone, Verizon Communications and Windstream.

Suddenlink’s Magical Mystery Meter: Records 12GB of Usage Even During Power Outage

Easy as counting in the dark.

Suddenlink customers in West Virginia who have been dealing with the aftereffects of a damaging derecho for a week found a nasty little surprise from their cable company when the lights cut back on — gigabytes of usage recorded on the company’s suspect “usage meter,” despite the fact customers were without power for up to a week.

Broadband Reports readers have begun to check back in after extended downtime to report Suddenlink is racking up usage whether customers are using their broadband connection or not:

  • “Tylr” reports he was without power for two days but Suddenlink’s usage meter kept the party going, recording 12GB of phantom usage during the two days the customer was without service;
  • “Jdmm72” found exactly the same thing, shocked to discover he racked up 10.8GB of usage on a day when he and his fellow neighbors in Nitro, W.V., were completely in the dark.

Suddenlink’s usage meter is not verified by any third-party or government agency to ensure its reliability and the company is under no obligation to change this policy. But customers are expected to cover any overlimit fees Suddenlink imposes for “exceeding your allowance.”

Does the company need the extra money? Not really, according to Suddenlink president and CEO Jerry Kent, who earlier admitted the days of expensive system upgrades were over and it was now time to rake in profits:

“I think one of the things people don’t realize [relates to] the question of capital intensity and having to keep spending to keep up with capacity,” Kent said. “Those days are basically over, and you are seeing significant free cash flow generated from the cable operators as our capital expenditures continue to come down.”

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