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4G LTE Broadband Makes Inroads… But Only When the Price is Right: Overcharging=Failure

Phillip Dampier January 11, 2012 Broadband Speed, Competition, Data Caps, Editorial & Site News, Rural Broadband, Video, Wireless Broadband Comments Off on 4G LTE Broadband Makes Inroads… But Only When the Price is Right: Overcharging=Failure

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/BBC News Will 4G be faster than home broadband 1-9-12.flv[/flv]

The BBC produced this mini-documentary about 4G LTE wireless broadband’s impact in Europe and the United States.  Providers in the UK and northern Europe see wireless 4G as the solution to rural broadband scarcity, but consumers in urban and rural settings won’t put up with stingy usage caps and ridiculously high prices.  Sweden pioneered 4G wireless, running the oldest and most robust 4G network in the world.  In Sweden, TeliaSonera delivers wireless broadband at speeds of up to 84Mbps — many times faster than what Verizon Wireless offers.  But even with those speeds, just 9,000 Swedes have signed up — rejecting the company’s “very high priced” service — $50US a month for 10GB.  (Verizon Wireless charges $80 a month for the same amount of data usage, a testimony to the price sensitivity of a much-more regulated and competitive European wireless marketplace.)

A TeliaSonera speed test shows their 4G LTE network can deliver nearly 84Mbps.

While Europe enjoys faster speeds at lower prices, providers in the United States are treating 4G as a luxury item.  With that in mind, plans by some U.S. carriers to create a home broadband replacement service for rural America that relies on 4G wireless networks will likely face strong consumer resistance because of the extremely high prices and low usage caps.  (The abrupt end of the video is intentional.) (10 minutes)

 

Local Governments Discover Cable Deregulation Leaves Them Powerless to Represent Consumers

Phillip Dampier January 11, 2012 Competition, Consumer News, Public Policy & Gov't Comments Off on Local Governments Discover Cable Deregulation Leaves Them Powerless to Represent Consumers

When Massena, N.Y. town supervisor Joseph D. Gray balked at Time Warner Cable’s demands for a 15-year franchise renewal agreement, especially after the cable company never bothered to show up at a hearing on the subject, he thought he could send a message by supporting a renewal expiring after just one year.

But there was a reason Time Warner never bothered to show up to defend their performance in northern New York State over the last decade of increasing rates and unwanted channels shoveled at subscribers — they did really have to answer to local officials.

Gray assumed playing some hardball with the cable company might get their attention and bring them to the table to discuss the demands of local Massena residents he hears from all the time.  At the top of the list is a-la-carte cable — paying only for channels you want.

No deal.

Gray

Mr. Gray has since admitted in conversations with the Watertown Daily Times he is frustrated by the town’s inability to effect “any real change.”

This despite the state cable franchise law which declares communities have the right to establish and negotiate “cable-related community needs” as part of the final contract with cable operators.

In fact, the cable industry has spent millions lobbying federal and state governments to deregulate their operations, even though most communities are served by just one cable operator.  While phone companies have made limited progress competing in larger urban areas, most of upstate New York is left choosing between a satellite provider or a cable company — usually Time Warner Cable.

That lobbying paid off in the 1990s when the federal government swept away considerable government oversight of cable operations.  While municipalities technically still control the basic franchising process, those dissatisfied with service from an existing provider rarely find other companies willing to take over.  That leaves Massena stuck with Time Warner Cable, who isn’t giving an inch on how they package their programming.

“We can make some gains for the community. Can we get free service for a couple of municipal buildings? Probably,” Mr. Gray told the newspaper. “They continue to say there’s nothing they can do about programming, there’s nothing they can do about bundling.  That’s from the programmer.  Until we get … a la carte, where people get the channels they want, we’re never going to satisfy people.”

MSG/Time Warner Cable Flap Heats Up: Bars Cancel Cable in Buffalo, Customers Want Refunds

With no progress in sight, stalled contract negotiations between a popular sports cable network and New York’s dominant cable TV company continues to test the patience of customers and sports fans across the state.

Scores of Buffalo-area sports bars have canceled their commercial cable service with Time Warner Cable, generating plenty of business for DirecTV, which still has MSG on the lineup.  Customers across New York have also started to demand a refund of the estimated $4.50 a month Time Warner Cable no longer pays MSG, but still collects from cable subscribers.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/WGRZ Buffalo Time Warner and MSG Network plan meeting this week 1-8-12.flv[/flv]

Time Warner Cable and MSG’s dispute is ticking off Buffalo sports fans.  WGRZ visits area sports bars and talks with both sides in the dispute to learn the latest.  (4 minutes)

Now New York Attorney General Eric Schneiderman is brokering discussions between the two sides, in an effort to restore coverage of the Sabres, Rangers, and Knicks games all displaced from the Time Warner Cable dial.

“We have had constructive discussions with Time Warner and MSG Networks as part of an ongoing effort to facilitate progress in their talks,” said Schneiderman. “We are hopeful that the two parties will come to an agreement in short order.”

Schneiderman

So far, those negotiations seem to be going nowhere, and Time Warner released a statement stating they have not had any further discussions with the network.  The cable company has also hardened its position with respect to refunding customers for the lost networks.  While early attempts to win credit were successful, Time Warner representatives are now refusing to compensate customers for the loss of MSG.  Instead, they are offering a free month of their mini-pay sports programming tier, which must be requested to access.  After the first month, the cable company will bill customers $5.95 a month for the channels.

“That’s no help,” says Stop the Cap! reader Jean, a Sabres fan in Amherst, N.Y.  “Not only don’t we get our $4.50 back, they want to set us up to pay an extra $6 a month after the 30-day trial of their ‘compensation’ is up.”

Many of her friends who live in suburban Buffalo are dumping Time Warner in favor of Verizon FiOS.  Area sports bars are following.  At least a dozen have canceled their commercial service contracts with Time Warner Cable, many switching to satellite provider DirecTV.  Buffalo’s love affair with hockey is so intense, 5,000 people showed up last week at the First Niagara Center stadium to watch the Buffalo Sabres away game on large screen televisions hung above the rink.

Cashing in

Sports bars depend on lucrative sales during major sports events, so being without the Sabres proved unacceptable, a point driven home by MSG itself which continues to host free viewing parties at local establishments.  Buffalo wings were included for free.

Stop the Cap! reader Ruth Grunberg, who lives in Cortland, N.Y., has started a petition to demand the cable company refund subscribers the $4.50 a month effectively paid for channels they no longer receive.

“They recently raised rates 7% for the second time in a year and they no longer are sending this money to MSG,” Grunberg says. “They have no right to keep it and pay their bloated executives even more money. It is fraud and bait and switch to promise one thing and deliver another. They should offer a la carte service to solve a multitude of problems.”

The city of New York apparently agrees and continues efforts to pressure the cable company into compensating subscribers for the network loss.

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/WIVB Buffalo Bars Cancel Time Warner 1-10-12.flv[/flv]

WIVB in Buffalo reports area sports bars are canceling Time Warner Cable in droves as its programming dispute with MSG drags on with no end in sight.  (2 minutes)

Pennsylvanians Excited/Outraged About Free Cell Phones & Discounted Broadband for the Poor

Phillip Dampier January 11, 2012 Consumer News, Editorial & Site News, Public Policy & Gov't, Video Comments Off on Pennsylvanians Excited/Outraged About Free Cell Phones & Discounted Broadband for the Poor

[flv width=”360″ height=”290″]http://www.phillipdampier.com/video/WHP Harrisburg Free cell phone program 1-5-12.mp4[/flv]

WHP-TV in Harrisburg, Penn. has been running several stories about the FCC’s Lifeline program, which hands out free cell phones to those living below the poverty line.  While the FCC defends the Lifeline cell phone program as delivering needed phone service for job-seekers and as a landline replacement, some citizens who consider cell phones a luxury are upset the federal government is subsidizing the project at a cost of $1.3 billion a year.  Even more disturbing to some is the reported amount of waste, fraud, and abuse that may be delivering free phones to those who don’t deserve them.  The anchor’s thinly-disguised editorializing leaves little doubt he considers the program a waste of money at a time of skyrocketing budget deficits. (Warning: Loud Volume)  (2 minutes)

[flv width=”360″ height=”290″]http://www.phillipdampier.com/video/WHP Harrisburg Possible free broadband 1-10-12.mp4[/flv]

WHP ran this follow-up story about the FCC’s forthcoming involvement in “free broadband” for the poor.  In fact, the subsidized Internet program would likely deliver 1-3Mbps basic Internet service for around $10 a month.  The WHP anchor doesn’t seem too impressed with this part of the Lifeline program either.  (Warning: Loud Volume)  (2 minutes)

Virgin Media Doubling Broadband Speeds for Free While Competitor Sky Unveils 100Gbps Internet for UK

Phillip Dampier January 11, 2012 Broadband Speed, Competition, Data Caps, Net Neutrality, Online Video, Sky (UK), Virgin Media (UK) Comments Off on Virgin Media Doubling Broadband Speeds for Free While Competitor Sky Unveils 100Gbps Internet for UK

Virgin Media is doubling customer broadband speeds... for free.

Great Britain is leapfrogging ahead in the global broadband speed race with two announcements this morning that represent major advances in British broadband.

First, Virgin Media is announcing it will double the broadband speeds for four million of its customers starting next month, for free.

The company says it will be the first residential provider in the United Kingdom offering 120Mbps broadband — a 20Mbps speed increase for their existing 100Mbps clients.  Customers on Virgin’s 10, 30, and 50Mbps tiers will soon receive free upgrades to 20, 60, and 100Mbps, respectively.  Those on the company’s popular 20Mbps plan will have their speeds tripled to 60Mbps.

That’s a major advancement for British broadband, where dominant BT-provided DSL runs at speeds averaging just over 6Mbps.

The new speeds were made possible by “modest investments” in Virgin’s fiber network, according to Virgin Media CEO Neil Berkett.

Berkett said the new speeds would help meet growing demand for faster access to support the proliferation of new digital devices.  Because Virgin invested primarily in fiber and cable broadband, speed upgrades on their existing infrastructure come “at a fraction of the cost of other network operators.”

That understanding was not lost on Sky Broadband, a growing competitor in the United Kingdom.  Sky this morning announced it has launched a newly-upgraded 100Gbps optical network to support its 3 million broadband customers.  The company is spending several hundred million British pounds on updating its network to position itself to become Britain’s largest Internet Service Provider.

Sky’s new network is based on the latest Alcatel-Lucent fiber technology, capable of supporting 100Gbps speeds on each of the individual 88 wavelengths on a single optical fiber.  Sky deployed the new dense wavelength division multiplexing technology on its existing optical fiber backbone network, demonstrating the infinite upgrade possibilities fiber optic technology offers.

Sky pitches its network capacity to consumers as a key benefit of its service, noting it is free of “traffic management” policies that reduce speeds for customers of other Internet providers.

The upgrade arrives just in time to handle the expected explosion of online traffic with this week’s introduction of Netflix streaming across Great Britain.

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