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Kansas’ Senate Commerce Committee Members Well-Compensated by Big Telecom

Phillip Dampier January 30, 2014 AT&T, CenturyLink, Comcast/Xfinity, Community Networks, Competition, Consumer News, Cox, Editorial & Site News, Public Policy & Gov't, Rural Broadband, Verizon Comments Off on Kansas’ Senate Commerce Committee Members Well-Compensated by Big Telecom

lobbyist-cashThe Kansas State Legislature website makes it very difficult to find exactly who wrote and introduced Senate Bill 304, the laughingly titled, “Municipal Communication’s Network and Private Telecommunications Investment Safeguards Act.

In fact, the bill should be titled, “The Big Telecom Duopoly Protection Act,” because it makes it almost impossible for any publicly owned network to get off the ground and compete in the state of Kansas, even in places where the nearest cable or DSL connection is dozens of miles away.

Instead of naming names, the legislature’s website prefers to show the bill introduced by the Committee on Commerce, sponsored by the Committee on Commerce, and referred to the Committee on Commerce for further consideration. Since they apparently wrote and co-sponsored the bill, we don’t expect it will take them too long to rubber stamp their approval.

The Republican-dominated members of the committee are already well-acquainted with the state’s largest cable and phone companies, as their campaign donations from 2012 illustrate:

  • Sen. Julia Lynn (R), Chairperson: AT&T ($1,750), Comcast ($1,500), CenturyLink ($1,000);
  • Sen. Susan Wagle (R), Vice-Chair: Cox Communications ($1,750), AT&T ($1,500), Kansas Cable Telecommunication Association ($1,250), Comcast ($1,000), CenturyLink ($1,000);
  • Sen. Tom Holland (D), Ranking Member: AT&T ($1,000);
  • Sen. Pat Apple (R): AT&T ($1,000), Comcast ($1,000), Kansas Cable Telecommunication Association ($250), Time Warner Cable ($250), Verizon ($250), CenturyLink ($250);
  • Sen. Jim Denning (R): CenturyLink ($250);
  • Sen. Oletha Faust-Goudeau (D): AT&T ($1,000), Cox Communications ($1000), Kansas Cable Telecommunication Association ($250);
  • Sen. Jeff Longbine (R): AT&T ($2,000), CenturyLink ($1,750), Cox Communications ($500);
  • Sen. Jeff Melcher (R): CenturyLink ($1,000);
  • Sen. Robert Olson (R): AT&T ($1,750), Comcast ($1,500), CenturyLink ($1,250), Cox Communications ($750);
  • Sen. Mary Pilcher-Cook (R): Comcast ($1,000).

Data: Project Vote Smart, 1/30/2014

Anti-Community Broadband Bill Introduced in Kansas; Legislating Incumbent Protection

What company is behind the effort to ban municipal broadband in kansas.

AT&T is a frequent backer of anti-community broadband initiatives, as are some of the nation’s biggest cable companies.

The Kansas Senate’s Commerce Committee has introduced a bill that would make it next to impossible to build publicly owned community broadband networks that could potentially compete against the state’s largest cable and phone companies.

Senate Bill 304 is the latest in a series of measures introduced in state legislatures across the country to limit or prohibit local communities from building better broadband networks that large commercial providers refuse to offer.

SB 304 is among the most protectionist around, going well beyond the model bill produced by the corporate-backed American Legislative Exchange Council (ALEC). At its heart, the bill bans just about any would-be competitor that works with, is run by, or backed by a local municipality:

Sec. 4. Except with regard to unserved areas, a municipality may not, directly or indirectly offer or provide to one or more subscribers, video, telecommunications or broadband service; or purchase, lease, construct, maintain or operate any facility for the purpose of enabling a private business or entity to offer, provide, carry, or deliver video, telecommunications or broadband service to one or more subscribers.

For purposes of this act, a municipality offers or provides video, telecommunications or broadband service if the municipality offers or provides the service:

  • Directly or indirectly, including through an authority or instrumentality:
  • Acting on behalf of the municipality; or for the benefit of the municipality;
  • by itself;
  • through a partnership, joint venture or other entity in which the municipality participates; or
  • by contract, resale or otherwise.
Tribune, Kansas is the county seat of Greeley County.

Tribune, Kansas is the county seat of Greeley County.

This language effectively prohibits just about everything from municipally owned broadband networks, public-private partnerships, buying an existing cable or phone company to improve service, allowing municipal utilities to establish broadband through an independent authority, or even contracting with a private company to offer service where none exists.

The proposed legislation falls far short of its intended goals to:

  • Ensure that video, telecommunications and broadband services are provided through fair competition;
  • Provide the widest possible diversity of sources of information, news and entertainment to the general public;
  • Encourage the development and widespread use of technological advances in providing video, telecommunications and broadband services at competitive rates and,
  • Ensure that video, telecommunications and broadband services are each provided within a consistent, comprehensive and nondiscriminatory federal, state and local government framework.

Proponents claim the bill is open to allowing municipalities to build broadband services in “unserved areas.” But upon closer inspection, the bill’s definition of “unserved” is practically impossible to meet anywhere in Kansas:

“Unserved area” means one or more contiguous census blocks within the legal boundaries of a municipality seeking to provide the unserved area with video, telecommunications or broadband service, where at least nine out of 10 households lack access to facilities-based, terrestrial broadband service, either fixed or mobile, or satellite broadband service, at the minimum broadband transmission speed as defined by the FCC.

Even the FCC does not consider satellite broadband service when it draws maps where broadband is unavailable. But this Big Telecom-backed bill does. Even worse, it requires would-be providers to prove that 90 percent of customers within a “census block” don’t have access to either mobile or satellite broadband. Since satellite Internet access is available to anyone with a view of the southern sky, and the most likely unserved customers would be in rural areas, it would be next to impossible for any part of the notoriously flat and wide open state to qualify as “unserved.”

Each rectangle represents one census block within one census tract that partially covers Greeley County. Under the proposed legislation, a community provider would have to visit every census block to verify whether a private company is capable of providing service, including satellite Internet access.

Each rectangle represents one “census block” within a larger “census tract” that partially covers Greeley County. Under the proposed legislation, a community provider would have to visit each census block to verify whether a private company is capable of providing broadband service, including satellite Internet access.

To illustrate, Stop the Cap! looked at Greeley County in western Kansas. The county’s total population? 1,247 — the smallest in the state. Assume Greeley County Broadband, a fictional municipal provider, wanted to launch fiber broadband service in the area. Under the proposed bill, the largest potential customer base is 1,247 — too small for most private providers. Still, if a private company decided to wire up the county, it could with few impediments, assuming investors were willing to wait for a return on their investment in the rural county. If SB 304 became law, a publicly owned broadband network would have to do much more before a single cable could be installed on a utility pole.

Census Block 958100-1-075, in downtown Tribune, has a population of 10.

Census Block 958100-1-075, in downtown Tribune, has a population of 10.

To open for business, Greeley County Broadband would have to spend tens of thousands of dollars to independently verify its intended service area — the county — is unserved by any existing broadband technology, including satellite and mobile broadband. The authors of the bill intentionally make that difficult. Just one census tract in Greeley County (#9561), encompassing the county seat town of Tribune (pop. 741) has dozens of census blocks. Some are populated, others are not.

Greeley County Broadband now has several big problems. Under the language in the bill, a municipal provider must first define its service area entirely within its borders — in this case Greeley County — and base it on contiguous census blocks. That means if pockets of qualifying potential customers exist in a census block surrounded by non-qualifying census blocks, Greeley County Broadband cannot include them in its service area.

Census Block 958100-1-075 — essentially at the intersection of Broadway Ave. and West Harper St., right next to City Hall — has a population of 10. AT&T Mobility’s coverage maps show Tribune is covered by its 3G wireless data network (but not 4G). That census block, along with every other in the area, would be disqualified from getting municipal broadband the moment AT&T upgrades to 4G service, whether reception is great or not. It doesn’t matter that customers will have to pay around $60 for a handful of gigabytes a month.

But wait, Verizon Wireless declares it already provides 4G LTE service across Greeley County (and almost all Kansas). So Greeley County Broadband, among other would-be providers, are out of business before even launching. Assuming there was no 4G service, if just two of those ten residents had a clear view to any satellite broadband provider, Greeley County Broadband would not be permitted to provide anyone in the census block with service under the proposed law. Under these restrictions, no municipal provider could write a tenable business plan, starved of potential customers.

Kansans need to consider whether that is “fair competition” or corporate protectionism. Is it a level playing field to restrict one provider without restricting others? If competition promotes investment in technologically challenged rural Kansas, would not more competition from municipal providers force private companies to finally upgrade their networks to compete?

In fact, the bill introduced this week protects incumbent cable and phone companies from competition and upgrades by keeping out the only likely competition most Kansans will ever see beyond AT&T, Comcast, or CenturyLink’s comfortable duopoly – a municipal or community-owned broadband alternative. Providing the widest possible diversity is impossible in a bill that features the widest possible definition of conditions that will keep new entrants out of the market. Community-owned networks usually offer superior technology (often fiber optics) in communities that are usually trapped with the most basic, outdated services. While the Kansas legislature coddles AT&T, that same company wants to mothball its rural landline network pushing broadband-starved customers to prohibitively expensive, usage capped wireless broadband service indefinitely.

verizon 4g

Seeing Big Red? The areas colored dark red represent the claimed coverage of Verizon Wireless’ 4G LTE network in Kansas. Under SB 304, these areas would be prohibited from having a community-owned broadband alternative.

Staking the Heart of the Power-Sucking Vampire Cable Box

vampire-power-1-10964134Two years after energy conservation groups revealed many television set-top boxes use almost as much electricity as a typical refrigerator, a voluntary agreement has been reached to cut the energy use of the devices 10-45 percent by 2017.

The Department of Energy, the Natural Resources Defense Council, the American Council for an Energy-Efficient Economy, the Appliance Standards Awareness Project, the Consumer Electronics Association, and the National Cable & Telecommunications Association agreed to new energy efficiency standards for cable boxes expected to save more than $1 billion in electricity annually, once the new equipment is widely deployed in American homes. That represents enough energy to power 700,000 homes and cut five million tons of CO2 emissions each year.

“These energy efficiency standards reflect a collaborative approach among the Energy Department, the pay-TV industry and energy efficiency groups – building on more than three decades of common-sense efficiency standards that are saving American families and businesses hundreds of billions of dollars,” said Energy Secretary Ernest Moniz. “The set-top box efficiency standards will save families money by saving energy, while delivering high quality appliances for consumers that keep pace with technological innovation.”

DVR boxes are the biggest culprits. American DVRs typically use up to 50W regardless of whether someone is watching the TV or not. Most contain hard drives that are either powered on continuously or are shifted into an idle state that does more to protect the life of the drive than cut a consumer’s energy bill. A combination of a DVR and an extra HD set-top box together consume more electricity than an ENERGY STAR-qualified refrigerator-freezer, even when using the remote control to switch the boxes off.

NRDC Set-Top Boxes  Other Appliances-thumb-500x548-3135

Manufacturers were never pressed to produce more energy-efficient equipment by the cable and satellite television industry. Current generation boxes often require lengthy start-up cycles to configure channel lineups, load channel listings, receive authorization data and update software. As a result, any overnight power-down would inconvenience customers the following morning — waiting up to five or more minutes to begin watching television as equipment was switched back on. As a compromise, many cable operators instruct their DVR boxes to power down internal hard drives when not recording or playing back programming, minimizing subscriber inconvenience, but also the possible power savings.

In Europe, many set-top boxes are configured with three levels of power consumption — 22.5W while in use, 13.2W while in standby, and 0.65W when in “Deep Sleep” mode. More data is stored in non-volatile memory within the box, meaning channel data, program listings, and authorization information need not be re-downloaded each time the box is powered on, resulting in much faster recovery from power-saving modes.

The new agreement, which runs through 2017, covers all types of set-top boxes from pay-TV providers, including cable, satellite and telephone companies. The agreement also requires the pay-TV industry to publicly report model-specific set-top box energy use and requires an annual audit of service providers by an independent auditor to make sure boxes are performing at the efficiency levels specified in the agreement. The Energy Department also retains its authority to test set-top boxes under the ENERGY STAR verification program, which provides another verification tool to measure the efficiency of set-top boxes.

Comcast, DirecTV, DISH Network, Time Warner Cable, AT&T, Verizon, Cox Communications, Charter Communications, Cablevision, Bright House Networks and CenturyLink will begin deploying new energy-efficient equipment during service calls. Some customers may be able to eventually swap equipment earlier, depending on the company.

[flv]http://www.phillipdampier.com/video/WCCO Minneapolis Check Your Cable Box 6-27-11.mp4[/flv]

WCCO in Minneapolis reported in 2011 cable operators like Comcast may make subscribers wait 30 minutes or more for set-top box features to become fully available for use after plugging the box in. (1:50)

Cox Communications Exploring Bid for Time Warner Cable

coxCox Communications is contemplating jumping into the bidding for Time Warner Cable either on its own or with others, according to a story published in today’s Wall Street Journal.

Privately held Cox is the country’s third largest cable operator, right behind Time Warner Cable, with nearly 4.5 million subscribers. It’s slightly larger than Charter Communications, which itself wants to acquire TWC.

timewarner twcCox and Cablevision, the nation’s two largest privately held or controlled cable companies, have both been mentioned as targets for takeover in a rush to consolidate the cable industry. Cablevision has been rumored to be on the verge of selling for years, but the Dolan family that founded the cable operator has the final say. Cox previously indicated it had no intention of selling, preferring to explore buying opportunities.

Speculation is mounting that Comcast, Charter, and now perhaps Cox could offer a joint bid for Time Warner Cable, splitting up the company and absorbing TWC subscribers in their own operations without attracting unwanted attention from antitrust regulators and the FCC, either which could effectively torpedo a deal.

Cox Speed Boosts Come With Free Cloud Storage That Eats Your Data Allowance

Phillip Dampier October 22, 2013 Broadband Speed, Consumer News, Cox, Data Caps 2 Comments

coxCox Communications today officially unveiled broadband speed increases along with free cloud storage without adjusting data plan usage allowances for customers who take advantage of the service enhancements.

“Our customers tell us that their overall online experience is becoming increasingly important to them,” said Betty Jo Roberts, vice president of marketing for Cox Virginia. “Speed, access, safety and storage are key components of their communications and entertainment needs. Free cloud storage presents an especially significant value, as most similar services are fee-based.”

Internet Tier/Allowance
Current Speeds Download/Upload New SpeedsDownload/Upload Free Cloud Storage
Essential – 100GB 3 Mbps / 768 Kbps

5 Mbps / 1 Mbps 1 GB
Preferred* – 250GB 25 Mbps / 2 Mbps 25 Mbps / 5 Mbps 5 GB
Premier D2* – 250GBWith DOCSIS 2.0 device 25 Mbps/3 Mbps No change 50 GB
Premier D3* – 250GB 30 Mbps/6 Mbps 50 Mbps / 10 Mbps 50 GB
Premier Plus – 250GB 60 Mbps/12 Mbps 75 Mbps/15 Mbps 50 GB
Ultimate – 400GB 100 Mbps / 20 Mbps No change Unlimited

*A DOCSIS 3 modem is required to consistently receive optimal speeds for Preferred and higher tiers.

cox speed

Using cloud storage regularly and taking the new speeds for a hard run could drive customers perilously close to their monthly usage allowance. Cox Ultimate customers get unlimited cloud storage but not unlimited broadband usage. While Cox does not currently charge any overlimit fees, the company does reserve the right to request heavy users upgrade to a plan with a higher allowance, reduce usage, or face account termination.

Although Cox touted the speed upgrades as coming at no charge, the cable company is busy hiking rates for certain broadband tiers. Customers report the popular Premier tier has increased from $55.99 to $62.99 in some markets and as high as $73.99 in Phoenix.

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