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WRAL Raleigh: David vs. Goliath – Wilson Faces Cable Industry Boot Crushing Municipal Broadband

Phillip Dampier April 24, 2009 Community Networks, Video 3 Comments

Apparently not being sufficiently warned off by Time Warner’s earlier statements that municipal broadband would be expensive and a pain for the community of Wilson to administer, they found some friendly legislators in state government and helped push a bill that would effectively hamper, if not terminate the Wilson community’s broadband initiative. In a well orchestrated lobbying effort, cable industry officials began claiming that taxpayer funds were being used to leverage the public sector’s broadband product at the expense of “the free market.” But as Wilson city officials explained, their Greenlight project is firewalled from using public tax revenue. The project was paid for by a bond offering and is expected to be self-sustaining through ongoing customer receipts.

Cable industry officials continued to attack municipal broadband projects as failures waiting to happen, pointing to earlier projects that often relied on wireless networks, wi-fi, or older technology. Many cities with these projects have been unable to scale them to grow with expected demand, or have had difficulty expanding their network into other areas of the community. Others outsourced them to be administered by private providers in return for public considerations, such as free/discounted access in certain areas.

Fiber optic broadband projects are new to most municipal broadband projects, and come as a result of a lack of comparable service from private providers unwilling to meet the needs of communities. So having not succeeded in dissuading municipal competition, they now seek to effectively kill it with handcrafted legislation passed into friendly hands.

thumbs-up8WRAL continues its in-depth coverage on the challenges Wilson, NC faces in building their municipal fiber network.  Time Warner officials, among others, make some unproven accusations and statements in this report that go unchallenged, but overall it provides a balanced look at the growing controversy.

Damage Control Technique #1: Increase Speeds in San Antonio

Phillip Dampier April 24, 2009 Broadband "Shortage" 13 Comments

[Update 3:20pm EDT: Corey writes back with some minor corrections:  “Standard Service is now 15Mbps down/2Mbps up; Turbo is 25Mbps(ish) down/2.5Mbps up” for him.  Don’t forget Powerboost may play with your numbers on the download.]

You’ve just alienated the majority of your customer base with a harebrained scheme to Cap ‘n Tier people into the Internet circa 1990, and that didn’t work and a whole lot of people canceled.  So what do you do to placate the masses?

Increase their speed!

Before: Some of our heavy users (a/k/a Turbo tier customers I’ll bet) are using too much of our service and they are costing us too much.  We need to charge more and cap you to invest in better equipment.

Today: “As a valued (San Antonio) Time Warner Cable customer, we have automatically upgraded your download speed from Road Runner Turbo 10 Mbps to our new Road Runner Turbo 15 Mbps speed at no additional cost to you. More importantly, we’ve upgraded your upload speed from 1 Mbps to 2 Mbps for FREE.”

StoptheCap! reader Corey is confused:

“The ONLY thing that makes sense is that by increasing speeds and usage (especially upload speeds), they are trying to create congestion so that they get problems and complaints to base their “facts” on, so that they have ammunition to come back with at a later time.”

It could be that.  Or it could also be the fact the exaflood theory they based their earlier arguments on doesn’t hold a cup of water.  It does seem odd that they would increase speeds for the customers they claim were causing a lot of their “problems.”  Perhaps they also lost a whole bunch of those customers over this Cap ‘n Tier business and they want to get them back.

WFMY Triad – Now It’s 86% of Customers Will Not Be Affected By Caps

Phillip Dampier April 24, 2009 Video 8 Comments

If one of our readers is keeping a spreadsheet of all of the various claims, rates, and percentages Time Warner keeps throwing out there when it comes to who usage caps affect, and who they don’t, here’s another percentage – 86%. Melissa Buscher, director of Media Relations for Time Warner down in the Triad region, tells viewers that’s the percentage of customers who will be completely unaffected by the proposed usage limits. Who is affected? “Very heavy downloaders and heavy gamers,” according to Buscher.

All of these random numbers reminded me of the scene in The Manchurian Candidate when a very frustrated Mrs. Iselin decided the only way her McCarthyesque husband, Senator John Iselin, would be able to remember how many Communists he accused of working for the State Department, was to try and memorize a single number.  The Heinz Ketchup bottle touting “57 varieties” served quite nicely, allowing Sen. Iselin to emphatically insist that there were 57 confirmed Communists infiltrating the State Department.

Unrated.  This was a companion report produced by WFMY to allow Time Warner officials to present their side of the story about the usage cap program.

WETM Elmira: Time Warner Plan Nixed, the Twin Tiers Can Relax

Phillip Dampier April 24, 2009 Public Policy & Gov't, Video Comments Off on WETM Elmira: Time Warner Plan Nixed, the Twin Tiers Can Relax

WETM covers the cap plan being shelved out of concern that it one day would reach the southern tier of New York, where Road Runner has a very substantial market share for broadband service. Congressman Massa hails from the nearby Corning area, as his district extends northwards all the way into Rochester’s southern suburbs.

WHAM Rochester – One Week Ago, Caps Shelved

Phillip Dampier April 24, 2009 Public Policy & Gov't, Video 1 Comment

After a week of catch-up, I’ve finally gotten to last Thursday, when the cap program finally fell apart (for now).  With the sheer quantity of new material constantly reaching us, I’ve been remiss in keeping as up to date with the news clips as I’d have liked.  But I want people to see this moment of victory, for several reasons:

Several people have inquired if I have a copy of Senator Schumer’s entire remarks from that afternoon. Unfortunately, I do not, but over the course of most of the Rochester-based media accounts you will be seeing, at least 75% of what he said is included over the entirety of the reports from the Rochester stations.  The most important statement I want people to hear in the senator making it emphatically clear that “Rochester will not be part of any tiered pricing plan period.”  Should Time Warner renege, that will be a major point of contention for this community, at least.  I have spoken with the senator’s office and they are clearly and carefully monitoring this situation on an ongoing basis.  An attempt to simply dress up the same old scheme and bring it back this fall is not going to go over well.

Senator Schumer’s importance in this entire affair cannot be downplayed or underestimated.  A United States senator means business, and Time Warner knows it.  When the CEO picks up the phone and calls the senator himself, that’s a recognition we have their attention. If you haven’t thanked the senator yet, please consider doing so.

For those in other communities, you have only heard parts of how this story all went down in Rochester.  Thankfully, all of us benefited together, with the exception of the people of Beaumont, who I’ve never forgotten about.  These reports will bring you fully up to speed on the events that transpired here in western New York.  For those in Rochester, you need to pay careful attention to the language being used by Time Warner spokespeople in the other cities, particularly in the Triad, North Carolina.  It was one of the major reasons I came to believe the cap plan has not been staked through the heart at all.

All of these video clips will be stored in our reference library here, so that any other communities that face a cap announcement can learn from our own experiences, and plan strategies to combat them accordingly. You can access them from the Category menu, choosing Video from the list.

And we’re off….

A number of the Rochester clips will be unrated, as I have traditionally done with media reports, because I am in several of them. That would be too cute by half. I’ll just say that most of them are quite good, and it’s better for me when those long shots are avoided. Violet Beauregard in her finest Willy Wonka moment and I may have been separated at birth. If you don’t get it, use The Google: “violet blueberry willy wonka.” And for several seconds, I get to be the bobblehead too.

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