Gooch

A bill in the Georgia legislature that would divert a portion of a state fund that currently subsidizes rural landlines towards rural internet expansion ran into trouble last week after lobbyists representing AT&T and several small rural telephone companies announced opposition to the measure.

Sen. Steve Gooch (R-Dahlonega), the chief sponsor of Senate Bill 65, is seeking to boost subsidy funds to expand high-speed internet in unserved areas of the state. His bill would designate up to $35 million annually towards construction of new broadband connections. Without the measure, state residents would instead see a reduction in Universal Access Fund (UAF) fees on their monthly phone bills beginning later this year. But if the bill passes, modest UAF charges would continue at 2020 levels for an additional nine years, expiring June 30, 2030.

Georgia’s Senate Regulated Industries Committee reviewed the current state of rural broadband funding in a meeting held last Thursday in Atlanta. Gooch noted Gov. Brian Kemp already set aside $20 million for rural broadband in the 2021 state budget, but he felt more needed to be done.

“Twenty million dollars […] is a good start,” Gooch said. “But we need to put more money into this year after year until the problem is fixed.”

Gooch’s measure has attracted 20 co-sponsors in the legislature so far:

Georgia’s cable and phone companies appear much less supportive of Gooch’s effort. Leading the charge against Gooch’s bill was AT&T Georgia. Kevin Curtin, AT&T’s assistant vice president of legislative affairs in Georgia, said diverting money from the UAF Fund to rural broadband expansion was unnecessary.

“There are many federal government programs doling out substantial amounts of funding to spread broadband,” Curtin said. AT&T has regularly pointed to the FCC’s Rural Digital Opportunity Fund (RDOF) as the best source of rural broadband funding. The 10-year, $9.2 billion program has already designated $326.5 million for rural broadband expansion in Georgia. But it will take years for RDOF to dispense its available funds.

The state’s largest lobbying group for the cable industry does not care for the bill either.

“We want to continue to try to bring broadband to every Georgia citizen,” said Hunter Hopkins, interim executive director of the Georgia Cable Association. “Let’s just put more money in the general fund versus tinkering with the UAF.”

Rural Georgians are usually left waiting indefinitely for private industry investment to expand rural internet access. Instead, rural utility cooperatives are now stepping up to solve the rural broadband problem in parts of the state, often without waiting for government subsides.

Last week, Conexon, a fiber overbuilder and internet service provider teamed up with two member-owned utility co-ops with a plan to bring high-speed gigabit internet to 80,000 homes and businesses in 18 rural Middle Georgia counties.

The partnership will combine utility co-op investments of $135 million from Central Georgia EMC and $53 million from Southern Rivers Energy with $21.5 million from Conexon to build a new, 6,890 mile fiber to the home broadband network over the next four years that will serve residents in Bibb, Butts, Clayton, Coweta, Crawford, Fayette, Henry, Jasper, Jones, Lamar, Meriwether, Monroe, Morgan, Newton, Pike, Putnam, Spalding, and Upson counties. Monroe County has also offered $1.3 million to incentivize the partnership to break ground in that county as quickly as possible.

Customers in rural Georgia have given up waiting for companies like AT&T and Windstream to expand high-speed internet service.

“The majority of members in our service area have no access to the quality, high-speed internet service they so desperately need. That changes today,” said Southern Rivers Energy President and CEO Michael McMillan. “We know electric cooperatives play a critical role in connecting underserved areas and we are proud to partner with Conexon to help bridge the digital divide for our communities. This partnership will enable thousands of rural Georgians to finally access the same online connections as those in more urban areas, while allowing us to maintain focus on our core mission – providing reliable, affordable electricity to our members.”

Comcast on Wednesday said it will give its customers a six month reprieve on implementing its 1.2 TB data cap after state legislators in Massachusetts and Pennsylvania’s attorney general complained about the prospect of families paying more for internet access during a pandemic.

“As Pennsylvanians continue to navigate this pandemic, we know millions are relying on the internet for school and work more than ever. This is not the time to change the rules when it comes to internet data usage and increase costs,” said Pennsylvania Attorney General Josh Shapiro. “My office negotiated with Comcast to delay the implementation of these overage charges and waive any early termination fees for customers who opt out through December 2021. We also limited the impact of these changes on low-income households.”

The postponement applies to Comcast broadband customers in Connecticut, Delaware, Maryland, Maine, Massachusetts, New Hampshire, New Jersey, North Carolina, New York, Pennsylvania, Vermont, West Virginia, and the District of Columbia.

In addition to a delayed introduction of data caps, Comcast has also agreed to:

• not implement any data caps for low-income customers enrolled in Comcast’s Internet Essentials discount internet program for the rest of 2021;
• waive any early termination fees for customers planning to switch providers and signed a contract before November 2020;
• delay any overlimit fees until July, which will first be seen on customers’ August bills;
• more prominently disclose the fact Comcast has a data cap in its marketing materials.

Pennsylvania consumers concerned about how Comcast’s data threshold may affect them should file a complaint with the Office of Attorney General’s Bureau of Consumer Protection.

Comcast also reminded customers the data cap postponement announced today only applies to customers in the northeastern U.S. states noted above.

Charter Communications will spend almost $5 billion a part of a multiyear, 24-state broadband buildout to deliver high-speed internet service to more than a million unserved homes and businesses.

Approximately $1.2 billion of the cost to serve these low-density, mostly rural communities will come from the federal government’s Rural Digital Opportunity Fund (RDOF), which is subsidizing some of the expenses associated with providing service in areas deemed unprofitable to serve.

Preparation and planning for Charter’s RDOF Phase 1 broadband buildout has already begun, with an additional 2,000 employees and contractors expected to focus on Charter’s rural expansion efforts in Alabama, California, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Massachusetts, Michigan, Missouri, New Hampshire, New Mexico, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Vermont, Virginia, Washington, and Wisconsin.

The biggest expansions in coverage area appear to be in North and South Carolina, North and Eastern Wisconsin, East Texas, Ohio, and Eastern Tennessee.

Charter’s RDOF Expansion Project Map

The network Charter will build in these rural areas will offer Spectrum 1 Gbps high–speed broadband access to all newly served customer locations with starting speeds of 200 Mbps, with no data caps, modem fees, or contracts. Customers will also be able to subscribe to Spectrum TV, home phone and wireless mobile service.

Charter CEO Thomas Rutledge said one of the most important factors governing when service will become available is how well the cable company will be received by the owners of utility poles in the various regions.

“The more cooperation we have with the pole owners and utility companies, the faster we can connect these communities with high-speed internet services,” Rutledge said in a company news release. “We look forward to working with local municipalities, electric cooperatives, and investor-owned utilities to ensure that permits are obtained in a timely, fair and cost-effective fashion.”

The ongoing COVID-19 pandemic and corresponding traffic growth has apparently taken its toll on network capacity at Mediacom, forcing the company to reach out to a growing number of its heavy uploaders and telling them to reduce usage or face a speed throttle or the possible closure of their account.

An East Moline, Ill. Mediacom broadband customer of 10 years was offended to receive a phone call from Mediacom’s “Fraud and Abuse Department” telling him he was overusing his gigabit internet account, which includes a 6 TB data cap. The customer was certain he never exceeded Mediacom’s data cap, and in fact recorded 2.5 TB of usage over the last month, well below his data allowance.

Mediacom’s representative explained the problem was not with how much he downloaded.

“He told me my upload was 450 GB over their average and if I didn’t reduce my usage they would either throttle or disconnect me,” DSL Reports‘ reader poonjahb wrote. “I argued that I used less than half of the total data allowed by my plan, but he said my 1.2 TB of upload was too much and that this was my warning.”

Other Mediacom customers across the Midwest also received similar letters in early January, and several contacted Stop the Cap! Many were already annoyed Mediacom had earlier imposed a data cap, but were incensed they were now being threatened when usage was well under that cap.

“I am paying for gigabit internet service just to never have to worry about a data cap,” said Cory, a Mediacom customer in Missouri. “It comes with a 6,000 GB monthly allowance, which is way more than I will ever use, but I still received a warning letter claiming I was uploading too much. I discovered I used about 900 GB over the last two months, setting up a cloud backup of my computer. At most I can send files at around 50 Mbps, which they claim is interfering with other customers in my neighborhood. I don’t understand.”

Several filed complaints with the FCC, which the agency forwarded on to Mediacom customer service. Most received form letter replies.

COVID-19 Pandemic Causes Traffic Surge, Mediacom Tells Stop the Cap!

“Mediacom routinely reviews both download and upload usage trends to determine if any customers are using a disproportionate share of bandwidth compared to average users,” explains Thomas J. Larsen, senior vice president of government and public relations at Mediacom. “If a customer falls into the top 0.5% of downstream or upstream capacity users in a given month, they may receive a letter or call from Mediacom regarding their usage. This would apply to both business and residential customers. The reason for contacting the customers is to explain that their usage patterns may be degrading the performance of the network and affecting other users.”

Larsen pointed to statistics from the cable industry’s largest trade group, NCTA – The Internet & Television Association, which reported a 31.8% total cumulative growth in downstream internet traffic and a 51.1% increase in upstream traffic since the spring COVID-19 lockdowns back in March 2020.

A Mediacom letter sent to customers complaining to the FCC about the practice cited network “stress” caused by excess upstream traffic. Larsen told Stop the Cap! the company regularly reviews customers’ download and upload traffic trends, looking for outliers that use a disproportionate share of bandwidth compared to average users. Larsen would not admit if heavy users were noticeably affecting other customers with congestion-related slowdowns, but said the company was “reaching out … more frequently than before” to the top 0.5% of traffic generating users anyway. He also noted this policy equally applied to both residential and business accounts.

“This is not the easiest topic to explain because internet usage is growing rapidly in this work from home/study from home environment, so it is difficult to give an exact number that puts a customer into the 0.5% category because that number changes from month to month,” Larsen noted. “Understandably, that may make the policy seem arbitrary when we are really just trying to stay in line with moving usage trends.”

Internet Service Providers Have Wide Latitude to Cut Off Heavy Users

Virtually every internet service provider has a provision in their acceptable use policy allowing them to terminate or restrict service when a customer causes problems for that provider. Mediacom is no exception, telling subscribers “without limitation, customer’s usage of the service cannot restrict, inhibit, interfere with or otherwise disrupt or cause disruption, performance degradation of other users or impair or threaten to impair the operation of Mediacom’s systems or network.” This policy is in addition to whatever data usage plans are in place.

But Larsen insists Mediacom is not trying to alienate its customers.

“[We want to] work with our customers to address this issue in a productive manner,” Larsen told Stop the Cap!

At the moment, the only solution seems to be to reduce usage enough to stay off of the company’s “top 0.5%” radar.

Mediacom’s Warning Letters Uncommon Among Other Providers

Mediacom’s crackdown on heavy usage has not been copied by most other U.S. providers. Although traffic growth has been measured by virtually every provider in the country, most providers are mitigating possible service degradation by aggressively upgrading capacity or quietly node splitting neighborhoods experiencing the highest traffic growth, which immediately eases congestion issues.

The company did not indicate if its usage crackdown was temporary or if any planned network upgrades would allow it to ease restrictions sometime in the near future.

Other small providers dealing with congestion issues found a better solution sending letters to high traffic customers explaining forthcoming upgrades and temporarily requesting they limit upstream traffic during peak usage times, while not penalizing them for any off-peak traffic. That might prove to be a useful compromise between Mediacom and its customers and preserve goodwill.

Spectrum internet customers can be assured of an additional two years of unlimited internet service after Charter Communications dropped its petition Tuesday with the FCC to allow the cable company to introduce data caps.

The FCC’s Wireline Competition Bureau acknowledged receipt of Charter’s withdrawal of its petition to end a prohibition on the company imposing data caps and usage-based pricing mechanisms two years before the original agreement with the regulator expires on May 18, 2023.

The company claimed it had no immediate plans to impose data caps or usage-based pricing, but its decision to rescind the request assures that. The FCC imposed a seven-year ban on Spectrum imposing data caps as part of its approval of Charter’s 2016 merger with Time Warner Cable and Bright House Networks. The earliest the company can impose data caps is May 18, 2023.

Sources tell Stop the Cap! Charter likely made the decision to withdraw its petition after realizing the current Republican-dominated Commission was not planning to approve it in the waning days of the Trump Administration and it was highly unlikely to win approval under the incoming Biden Administration. It is not uncommon for petitioners to quietly withdraw requests to avoid the publicity of having them publicly rejected.