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Snow Day: Missouri Businesses Temporarily Close Because Kids Home Online Clog Windstream’s DSL

Phillip Dampier January 28, 2013 Broadband Speed, Competition, Public Policy & Gov't, Rural Broadband, Windstream Comments Off on Snow Day: Missouri Businesses Temporarily Close Because Kids Home Online Clog Windstream’s DSL

Fiber Dreams are Gone With the WindstreamWhen inclement weather forces Wayne County, Mo. schools to close, some area businesses in Piedmont also send employees home because their Windstream Communications’ DSL Internet speeds slow to a crawl.

“People feel they are paying for a service they are not getting,” Missouri state Rep. Paul Fitzwater told Windstream. “I get emails every day, letters, telephone calls. The other day there was a water main break and school was closed. Some of the businesses had to shut down because of reduced Internet speeds because the kids were online playing games.”

Fitzwater complained to Windstream officials that broadband issues are so bad in the region, it is affecting the local economy.

“McAllister Software is a major employer, employing around 140 people,” Fitzwater said. “They are vital to the local economy and they need Internet service. There were about 45 hours last year that they had to shut their doors because they had no Internet.”

Fitzwater

Fitzwater

Windstream plans broadband feast or famine for southeast Missouri’s Wayne County, with well-populated communities getting some broadband service improvements while more rural areas continue to go without high speed Internet.

“Windstream has made it clear that they have no plans to invest in areas where they don’t feel they can be profitable,” said Piedmont Area Chamber of Commerce president Scott Combs.

With no cable broadband competition in rural parts of Missouri, customers can take Windstream DSL or leave it. With no major competitive pressures, Windstream has taken its time to manage capacity upgrades and extend service.

When the kids are home from school, browsing speeds crawl because Windstream lacks sufficient capacity in the region. The company’s last fiber backbone upgrade made little difference, according to the Journal-Banner. Customers regularly find DSL speeds in the Piedmont area slow to 80-100kbps, about twice what dial-up customers receive. The speeds also degrade during evenings and weekends, when more users are online.

“Obviously, this is a problem in the area,” Fitzwater said. “There are a lot of people that come through the Piedmont area annually due to tourism—two to three million each year. When I was going door-to-door campaigning, Internet speed was the number one issue of constituents. Everyone I met with, the Internet was all they wanted to talk about.”

At the local Wal-Mart, customers compete to tell the worst Windstream DSL horror story.

Windstream’s rural service area in southeast Missouri is served by 11 remote switches. Only one — provisioned for McAllister Software — is fed by fiber. The others are served by copper. The city of Piedmont is served by three D-SLAMS which help extend Internet to more distant sections of town. Even Windstream admits their current infrastructure is inadequate and plans to improve Piedmont’s broadband service in the near future.

But after Piedmont’s service is upgraded, the rest of southeast Missouri will just have to grin and bear it. Windstream says it plans no further upgrades in 2013 and beyond because spending money on extending improved Internet service costs too much and is not financially feasible.

piedmontFor rural customers who remain without service, Windstream suggests they sign up for satellite broadband service, which also delivers slow speeds and very low usage allowances.

In 2009, Windstream won a $10.3 million grant for rural broadband projects. The money was not spent in Piedmont, however. Instead, Windstream used the funds for projects in Greenville and Wappapello, which also suffer from inadequate service.

Without further upgrades, customers are guaranteed additional speed degradation throughout the county. Those customers are angry.

Combs says Windstream is effectively engaged in bait and switch broadband marketing, promising customers 3Mbps service and delivering a small fraction of that speed during peak usage periods.

“I believe that Windstream, by taking money from customers that are being billed for 3Mbps download service (and greater), are obligated to provide that service,” Combs writes. “It is unethical and possibly illegal to charge customers for services that you have no capability or intention of delivering.”

Despite admissions from the company it faces growing usage and capacity issues, Windstream keeps marketing its broadband service to new customers, and charges voice-only customers more than those who bundle both voice and broadband, which only increases demand further.

“[Windstream has] no qualms about selling new accounts or ‘upgrading’ services on a system [it knows] cannot handle the additional pressure. How can this possibly be anything short of fraud?” asks Combs.

Broadband Maptastrophe; FCC Ignores Its Own 4/1Mbps Standard, Relies On Faulty Map Data

How accurate is the map?

How accurate is the map?

The biggest story you know nothing about is taking place at the Federal Communications Commission in Washington, where regulators are trying to figure out what to do with $185 million in leftover broadband expansion funds Internet Service Providers either could not qualify for or did not want. The FCC is on the verge of making a decision, one that will rely on broadband map data that service providers are now calling grossly inaccurate.

During the first phase of the Connect America program to fund broadband expansion in rural areas, the Commission offered up to $300 million to providers willing to wire consumers and businesses deemed too unprofitable to serve.

The rules largely favored phone companies, and although some including Frontier Communications gratefully accepted the funding to expand their DSL service, both of America’s largest phone companies expressed little interest. Many others, including CenturyLink and Windstream, petitioned to change the rules.

In the end, less than half of the available funding — $115 million — was actually spent, none in areas served by AT&T and Verizon.

The initial guidelines for participation were not exactly a high bar to cross. Under the program’s original rules, providers are required to deploy broadband within three years to certain locations that receive less than 768kbps downstream and 200kbps upstream (or no service at all). That “means test” set the bar far below the minimum speed providers can even call “broadband” under the FCC’s own current definition: 4/1Mbps.

The Federal Cable-Protection Commission

Anyone served by 1-3Mbps DSL “broadband” was instantly ineligible because the FCC effectively deemed those speeds ‘good enough for now.’ The FCC argued it wanted to first target funds to those without any service at all, not those who had inadequate service.

Participating carriers receive compensation up to $775 per home to defray connection costs, bringing expenses closer to the Return on Investment-test that decides whether your rural home will have broadband service or not. Large phone companies complained the subsidy was not nearly enough and did not bother applying. Some others said even with the subsidy, it was still too unprofitable to wire rural homes in their service areas.

This not-so-auspicious start of the Connect America project has driven the FCC to propose modifying the rules to increase participation by disinterested providers. In an opaque “Further Notice of Proposed Rulemaking,” the Commission proposes new rules that will “further accelerate the deployment of broadband facilities to consumers who lack access to robust broadband.”

Under the new guidelines, providers could be able to apply for funding if the areas they propose to serve are not already getting at least 4/1Mbps service. But in a surprising footnote, the FCC announced they will “use 3Mbps downstream and 768kbps upstream as a proxy for 4/1Mbps service.” In other words, the FCC is ignoring its own standard definition of broadband and settling for something less. That will leave customers waiting for something better than 3Mbps service up the creek, excluded from Connect America funding.

The U.S. Telecom Association is a lobbying group dominated by AT&T, Verizon and other phone companies.

The U.S. Telecom Association is a lobbying group dominated by AT&T, Verizon and other phone companies.

The U.S. Telecom Association (USTA), which represents phone companies, was appalled, suggesting this footnote will block funding from approximately one million rural households that receive what most of us would consider substandard broadband.

“This is particularly true for rural areas served by DSL which in most cases has been engineered to provide an upstream speed of 768 Kbps,” the USTA wrote in comments to the FCC. “In such cases, significant and costly network upgrades would be necessary to provide broadband service meeting the 4/1Mbps  benchmark. Therefore, rather than relying on evidence of 3/768 service to exclude areas from eligibility, the Commission should use the next speed tier—6/1.5Mbps as a proxy for 4/1 service.”

Windstream, in its own comments, was reduced to educating the FCC about the basic technical facts of DSL:

One Mbps upload speeds are not necessarily available to all customers served by standard ADSL 2+ architecture over a 24 AWG copper pair of 12,000 feet. Rather, delivery of reliable upload speeds of 1 Mbps would require an upgrade, such as two-pair bonded ADSL 2+. Two-pair bonded ADSL2+ essentially doubles last mile deployment cost since the end user modem is two to three times the cost of a normal single pair modem, two cable pairs are used instead of one, and two ADSL2+ ports are required at the DSLAM. Moreover, to achieve 1 Mbps of customer payload throughput would require an upload connection speed of more than 1.2 Mbps, while an upload connection speed of 1 Mbps would produce an actual throughput of about 820 Kbps.

Even where the loop length from the DSLAM to the customer is less than 12,000 feet, a service provider can only deliver service meeting the 4/1 requirement—or more precisely, service at speeds of 6/1.5Mbps, the next-fastest standard service tier—if the DSLAM is ADSL2+ capable and fiber-fed.

Windstream provides a primer on DSL to the FCC.

The resource that will determine who qualifies for broadband funding and who does not is the National Broadband Map, which seeks to describe the broadband options available at hundreds of millions of American addresses. If the map shows an area unserved, it qualifies for funding. If the map shows there is no broadband inadequacy, no funding will be offered.

Unsurprisingly, providers of all kinds are hurrying in comments that declare often considerable inaccuracies in the FCC’s map. This is ironic since much of the collected data on which the map is based was voluntarily supplied by those providers.

In various submissions filed with the FCC, several ISPs suggest the national map is not to be trusted. Some complain the updated service areas they earlier submitted have never been incorporated into the map, others are discovering inaccuracies for the first time because they can make the difference between winning or not qualifying for rural broadband funding (either for themselves or a competitor). Among other complaints: providers are overestimating their coverage and fibbing about actual speeds, the map’s census tract granularity ends up declaring an area served if even one household manages to get DSL service while others cannot, and providers only serving business customers are treated as if they serve everyone.

Mississippi Gov. Phil Bryant is asking the FCC to clean up the inaccuracies in the Mississippi portion of the National Broadband Map.

Mississippi Gov. Phil Bryant is asking the FCC to clean up the inaccuracies in the Mississippi portion of the National Broadband Map.

The state of Mississippi is the poster child for inaccuracies in the National Broadband Map. All that was required to disqualify most of the state from rural broadband funding was a boastful and inaccurate submission from one cable broadband reseller that claimed they served virtually all of Mississippi. Nobody bothered to question the veracity of their submission or verify it. Now the governor’s office is involved in efforts to scrub the inaccurate broadband map they consider more a fantasy than reality on the ground.

With the FCC preparing to launch the second phase of the Connect America Fund with up to $1.8 billion of available funding per year over five years, the money sharks are in the water circling one another.

Cable operators and wireless ISPs are asking the FCC not to hand out money to their competitors and phone companies are returning fire claiming those providers are lying about their coverage areas and have restrictions on service.

Companies ranging from Comcast to small, independent cable operators working with the American Cable Association are filing objections to the existing map. Wireless ISPs, often family-owned, are even more worried what will happen if phone companies like Windstream get federal dollars to upgrade their DSL service while unsubsidized WISPs are left to compete on their own.

In fact, the Competitive Carriers Association argues wireless providers are best positioned to make use of the unspent funds to deploy rural wireless broadband immediately.

“Wireless carriers offer the best opportunity to bring much needed broadband services to unserved and underserved areas, and it only makes sense for the FCC to consider proposals from wireless carriers,” said CCA president Steven K. Berry. “Many of our members are ready and willing to build out these networks, but depend on [financial] support in order to do so.  Wireless remains underfunded, and this could be an opportunity for the FCC to provide significant support for the services consumers want most.”

Not if the USTA and Windstream have anything to say about it. Both are on the attack in comments filed with the FCC:

WISPs: “Coverage should be independently verified before such areas are considered ineligible for Connect America funding. Like satellite providers, WISPs often have capacity caps and service quality issues, including unpredictable degradation from third-party interference from common devices such as cordless phones, garage door openers and microwave ovens when WISPs use unlicensed spectrum. The sustained speeds WISPs offer, particularly during busy times, also tend to be slower than those offered by [phone company broadband], and certainly slower than the 4Mbps downstream standard required of future recipients of federal funding.” — U.S. Telecom Association

The USTA also attacks WISPs for their usage caps, which they claim should disqualify them from serious consideration because their networks are technically and realistically inadequate to service today’s broadband consumer.

Cable “Competitors”: Windstream claims the bare existence of a cable operator alone should not disqualify the phone company from funding. Windstream suggests cable companies in its service areas may only serve one or two customers in a census tract, not really offer service at all, or provide sub-standard broadband that is so bad, nobody will do business with them.

Windstream proposes its own competition test: “In many areas […] with an alleged presence of an unsubsidized competitor, Windstream has received no requests in the past two years from customers for telephone number ports that are accompanied by cancellation of the customer’s Windstream broadband service. In other words, despite the alleged presence of a competitor providing service at speeds of at least 3/768 in areas where Windstream itself does not provide service exceeding 3/768, Windstream has not received a single request in two years in an entire area to port a phone number to a competitor and cancel the associated Windstream broadband service. Windstream submits that the lack of such porting requests throughout an entire area over a reasonable historical period is strong evidence that there is no competitor providing 3/768 or better service in that area.”

The independent phone company proposes that alleged unsubsidized competitors offer proof they are actually providing service before the FCC excludes an area from funding consideration.

"Here is our view." -- Phillip Dampier

“Here is our view.” — Phillip Dampier

Consumers are free to share their own views with the FCC on these matters by filing their own comments here. The Proceeding Number you will need is 10-90. It is generally easier to create a .PDF, standard .txt file, or Microsoft Word document and attach it to the submission form. Your comments will be publicly visible and posted to the FCC website.

Stop the Cap! feels the FCC should not renege on its commitment to fund rural providers that will guarantee customers will receive at least 4/1Mbps service. This barely adequate minimum will require phone companies to upgrade their facilities to next generation DSL technology that can support future speed upgrades. Compromising on lower speeds gives phone companies the option to deploy outdated early generation DSL that cannot be upgraded easily. In a positive development, many phone companies seem willing to commit to these upgrades with some financial assistance.

Funding should also be available to the provider that can deliver the best broadband service at the lowest cost. As urban and suburban customers have learned, that service often does not come from the phone company. Cable operators willing to commit to rural broadband upgrades should not be disqualified from funding, nor should community-owned providers who want to build their own networks.

We have also repeatedly complained about broadband mapping that lacks a formal mechanism to clearly verify coverage and speeds independent of the ISP supplying the data. Providers have an incentive to artificially boost or reduce coverage, particularly if it means the difference between qualifying for federal broadband expansion funding or disqualifying a competitor because the provider can falsely claim they already offer the service.

Our thanks to Cassandra Heyne, who dubbed the current situation an FCC ‘maptastrophe.’

A Look at Broadband Numbers in the United States: DSL Hurting Phone Companies

Phillip Dampier September 4, 2012 AT&T, Broadband Speed, Cablevision (see Altice USA), CenturyLink, Charter Spectrum, Comcast/Xfinity, Competition, Consumer News, Frontier, Rural Broadband, Verizon, Windstream Comments Off on A Look at Broadband Numbers in the United States: DSL Hurting Phone Companies

Lost more customers than it gained for the first time.

Phone companies depending on DSL to keep them in the broadband business are in growing trouble, unless they lack a nearby cable competitor. Subscriber numbers from nine different major phone and cable companies over the summer of 2012 show cable broadband continues to grow as customers cancel DSL service from their local phone company. But for rural customers, DSL often remains the only option. That leaves rural providers like Frontier, Windstream, and CenturyLink in better standing than larger companies like AT&T and Verizon.

Phone Companies

  • AT&T‘s U-verse service is the only thing keeping AT&T broadband numbers on the rise. AT&T added 553,000 new U-verse customers during the summer and now serves 6.5 million customers on its fiber-to-the-neighborhood network. AT&T continues to lose DSL customers, primarily to local cable competitors.
  • CenturyLink, Inc. has been upgrading its DSL service in several areas to better compete with cable broadband, and is also deploying a fiber-to-the-neighborhood service in select cities. The network upgrades are helping, bringing the company 18,000 new broadband customers. CenturyLink currently serves 5.76 million Internet customers nationwide.
  • Frontier Communications has lost broadband customers in its larger service areas, mostly to cable, but those losses have been offset by its DSL expansion in rural areas that have never had broadband before. But the company only managed to add just under 6,000 new broadband customers during the last quarter, serving 1.78 million customers across the country.
  • Verizon Communications: Verizon was willing to turn away potential DSL customers for the first time, as it discontinued selling DSL to those who don’t want Verizon landline service. That, and pervasive cable competition, meant Verizon only picked up 2,000 new DSL customers this quarter — the worst showing in four years. Verizon FiOS’ recent price hikes also cost the company some growth for its fiber to the home service,  but still earning a respectable 134,000 new customers (5.1 million total). Time Warner Cable, Cablevision, and Comcast have all managed to win back FiOS customers with attractive discount offers.
  • Windstream Corp. faces cable competition in a number of its semi-rural service areas, and its DSL service has not been able to keep up with the growing speeds available to cable broadband subscribers. For the first time, Windstream reported it lost more customers than it added, losing 2,200 DSL subscribers. Windstream still has 1.36 million customers signed up for its broadband service.

Cablevision has won back some of its former customers who went with Verizon FiOS but do not like the recent rate hikes.

Cable Companies

  • Cablevision, which serves mostly suburban New York City, New Jersey, and Connecticut added 25,000 new high speed customers, many coming back to the cable company from Verizon. Cablevision serves a relatively small geographic area, but a densely populated one. Nearly 3 million broadband customers have remained loyal to the cable company.
  • Charter Cable picked up 37,000 new broadband customers, a number fleeing phone company DSL for Charter’s higher speed broadband services. Charter serves 3.8 million broadband customers.
  • Comcast added 156,000 new customers to its roster of 18.7 million Internet customers, again mostly from former DSL customers.
  • Time Warner Cable expanded with 59,000 new high speed customers, primarily from DSL disconnects. Time Warner provides service for 10.8 million broadband customers.

Copper Thieves Start Targeting Power and Cable-TV Lines Creating Major Outages

Phillip Dampier May 30, 2012 Consumer News, Rural Broadband, Video, Windstream 3 Comments

This scrap copper wire is as good as gold

While telephone companies continue to suffer repeated outages from copper wire thieves, the growing problem of copper theft has now begun to impact cable-TV providers and even electric service in some areas.

Over the Memorial Day holiday, thieves were busy stripping phone, cable, and electric wiring from utility poles, underground conduit, and even buildings. Windstream suffered significant losses in the greater Tulsa area late last week when thieves sliced through wiring supporting phone, television, and broadband service, quickly spooling it up on pickup trucks to be hauled to copper recyclers, often to finance drug habits.

Windstream reports the problem of copper wire theft is growing and becoming more widespread, especially in out of the way places where thieves are not likely to be caught in the act. The Tulsa-area copper capers are characterized as semi-professional because thieves are starting to use professional tools to quickly slice through wiring and can scoop up 1,000 feet or more of cable in minutes.

Copper theft has even become a problem in office parks, where thieves are stealing high voltage electrical cables, often at the point where they attach to buildings. One Albuquerque radio station was off the air for nearly 14 hours after thieves ripped the radio station’s electrical wiring right off the building and out of the underground conduit.

[flv width=”360″ height=”290″]http://www.phillipdampier.com/video/KOKI Tulsa Thieves cut copper and knock out cable 5-25-12.mp4[/flv]

KOKI in Tulsa takes a look at the latest wave in copper cable theft — stealing cable television -and- telephone wires that disrupt phone, TV and Internet service all at once. (Warning: Loud Volume) (2 minutes)

[flv width=”480″ height=”290″]http://www.phillipdampier.com/video/KOB Albuquerque Copper thieves knock local radio station off the air 5-30-12.mp4[/flv]

KOB in Albuquerque talks with a nearby radio station taken off the air when cable thieves cut the building’s electrical wiring and yanked some of it right out of the ground.  (2 minutes)

The Death of the Landline? AT&T Ditches Yellow Pages, Pay Phones Disappear; So Do Customers

As AT&T joins Verizon selling off its Yellow Pages publishing unit and payphones keep disappearing from street corners, the media is writing the landline obituary once again.

CNN Money asks today whether we’re witnessing the death of the landline.

In as little as 20 years, the concept of a wired phone line may become the novelty a rotary-dial phone represents today.  Yes, traditional phone lines will still be found in businesses and in the homes of those uncomfortable dealing with a mobile phone, but America’s largest phone companies are well aware the traditional telephone line is in decline.

[flv width=”412″ height=”330″]http://www.phillipdampier.com/video/ATT Archives What is the Bell System.flv[/flv]

The Bell System, as it was known until the 1980s, used to comprise AT&T, Bell Labs, Western Electric, Long Lines, and two dozen local “operating companies” like New York Telephone, Mountain Bell, etc.  This AT&T documentary, from 1976, explores how “the phone company” used to function.  New innovations like “lightwave” are showcased, promising to deliver voice phone calls over glass fibers one day.  

Much of the technology seen in the documentary may be unfamiliar if you are under 30 (and check out how customer records were maintained back then), but those who remember renting telephones in garish colors from your local phone company will recognize the phones that occupied space in your home not that long ago.  The only part of the landline network that hasn’t changed much in the last 40 years is the wiring infrastructure itself, which has been allowed to deteriorate as customers continue to depart.

Why was the company so darn big back then?  Because it had to be, the documentary says, to serve a big America.  Hilariously, the company defends its then-status as a “regulated monopoly” telling viewers “[a] regulated monopoly works well in communications because you don’t duplicate facilities and you produce real economies over the long haul.”  (14 minutes)

CNN reports nearly one-third of all American homes no longer have landline service, double the rate from 2008, triple that of 2007.  Verizon is feeling the heat the most, with revenue down 19% over the last five years.  AT&T has seen their revenue drop 16.5% over the same period.

But things are not all bad for phone companies willing to spend money upgrading their networks.  Verizon’s top-rated FiOS fiber to the home service is a compelling competitor to Comcast and Time Warner Cable.  AT&T’s U-verse has gotten a respectable market share larger midwestern cities and draws customers who like its DVR box and the chance to stick it to the local cable company they’ve hated for years.

But where both companies have decided against investing in upgrades — notably in their rural service areas — the traditional phone line is trapped in time.  Only the network it depends on is changing, and not for the better.

[flv]http://www.phillipdampier.com/video/ATT 1993-1994 You Will Ad Campaign Compilation.flv[/flv]

Back in 1993, AT&T produced seven advertisements dubbed the “You Will” series, showcasing future technologies AT&T would “deliver to you.”  Eerily, the vast majority of these predictions came true, but mostly from companies other than AT&T.  While the phone company predicted what would eventually become E-ZPass, Apple’s iPad, Apple’s Siri, the smartphone, Skype, Amazon’s Kindle, the cable industry’s home security apps, video on demand, and GPS navigation, most of those innovations were developed and sold by others.  

AT&T spun away Bell Labs and became preoccupied selling Internet access, cell phones and reassembling itself into its former ‘hugeness’ through mergers and buyouts. With limited investment in innovation, AT&T risks being left as a “dumb pipe” provider, selling the connectivity (among many others) to allow other companies’ devices to communicate. (Alert: Loud Volume at around 2 minutes) (4 minutes)

Verizon decided to ditch its rural service areas to FairPoint Communications in northern New England and Frontier Communications in 14 other states.  The results have not been good for the buyers (and often customers).  FairPoint went bankrupt in 2009, overwhelmed by the debt it incurred buying phone lines in Vermont, New Hampshire, and Maine.  Frontier has watched its sales fall ever since its own landline acquisition, and the company has gotten scores of complaints from ex-Verizon customers about broken promises for improved broadband, billing errors, and poor service.

Analysts predict AT&T will start dumping its rural landline customers in the near future as well, letting the company focus on its U-verse service areas.  But who will buy these cast-offs?  CNN reports nobody knows.  CenturyLink and Windstream, two major independent phone companies, don’t appear to be in the mood to acquire neglected landline facilities they will need to spend millions to repair and upgrade.

One thing is certain — both AT&T and Verizon are tailoring business plans to favor Wall Street approval.  The companies’ decisions to temporarily boost revenue selling pieces of its operations has helped stock prices, but has also made the companies shadows of their former selves.  Nearly 30 years ago, customers still paid the phone company to rent their home telephones, relied extensively on the companies’ lucrative White and Yellow Pages for directory information, and discovered new technology innovations like digital switching thanks to Bell Labs, the research arm of AT&T — today independent and known as Alcatel-Lucent.  Today, people in some cities cannot even find a telephone company-owned payphone.

[flv width=”360″ height=”290″]http://www.phillipdampier.com/video/WJBK Detroit Quest to Find a Working Pay Phone 4-10-12.mp4[/flv]

WJBK in Detroit this week ventured out across Detroit to see if they could find a pay phone that actually works.  That old phone booth on the corner is long gone, and some admit they haven’t touched a pay phone in 20 years.  (2 minutes)

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