Should a deal to merge Time Warner Cable with Comcast be approved by regulators, Time Warner Cable customers can expect a number of changes to their cable, Internet, and phone service because of Comcast’s much more involved rate plans¹.

Customers should expect to pay significantly higher prices for a package comparable to what Time Warner Cable offers today, especially for cable television.

Broadband speeds will be faster with Comcast, but also likely usage-capped at 300GB a month, with overlimit fees applied to “heavy users.”

A sample Comcast bill

Customers may also be surprised to discover Comcast levies a number of ancillary fees that Time Warner does not, especially for various tasks completed by a Comcast customer service representative.

Comcast and Time Warner Cable have very different operating philosophies. Comcast is quickly moving customers to all-digital cable television service, so those Time Warner customers without set-top boxes or CableCARDs should be ready for a rapid transition to all-digital TV. Time Warner Cable, in comparison, has moved slowly towards digital service and uses a stop-gap technology that delivers some digital channels to neighborhoods only when being watched as a bandwidth conservation measure. Comcast will likely scrap that technology in favor of an all-out drive to switch to digital service.

Comcast’s television packages are very different from what TWC customers are used to buying. Time Warner customers can expect significant channel losses with Comcast’s nearest equivalent basic cable service. If you enjoy a lot of sports or old movies, Comcast will make you spend nearly $20 more on a higher-cost tier to get back the networks that Time Warner used to bundle as part of their basic cable service. But Comcast makes adding “whole home” DVR service look a lot more affordable than the $30+ unbundled fee Time Warner Cable has traditionally charged for the equipment and service.

In general Time Warner Cable customers should expect a higher bill for cable television, unless they want to downgrade service (for which Comcast also charges a service fee).

Broadband service from Comcast is also very different from what Time Warner Cable has offered. Most TWC customers now get 15/1Mbps service. Most Comcast customers get 25/5 or 50/15Mbps service. However, TWC doesn’t force usage caps on customers and Comcast is systematically reimposing them on theirs city by city, usually 300GB a month. The tradeoff with Comcast is faster advertised speed that comes usage-limited vs. slower speeds you can use as much as you want. Comcast also charges the highest modem rental fees in the country — now $8 a month in most places. Customers can and should buy their own modems. Those Time Warner Cable customers who already have better double-check to make certain Comcast will still support that equipment.

Phone service isn’t much different between the two companies, so we’re not covering it here.

Television Packages

Comcast offers a bigger variety of television packages than Time Warner Cable. Comcast likes to bundle premium channels into some of their higher end packages. Time Warner Cable’s prefers an a-la-carte approach with HBO and other similar networks.

Comcast customers start with Limited Basic service, comparable to Time Warner Cable’s Broadcast Basic package. It primarily features over the air local television stations and often runs under $10 a month. Effective this year, there is also a $1.50/month Broadcast TV surcharge applicable to all cable TV customers.

A new concept for Time Warner Cable customers is Comcast’s Digital Economy package that includes Limited Basic, Digital Economy channels, and a standard definition cable box and remote. Consider this barely promoted tier the economy bare bones basic cable package. In addition to local channels, Digital Economy offers a lineup of home shopping channels, CNN, HSN, Cartoon Network, Lifetime, History, A&E, E!, Comedy Central, Spike TV, USA Network, Fox News Channel, The Weather Channel, Food Network, Animal Planet, TLN, BET, TV Guide Network, Discovery Channel, Comcast Network, CSPAN, EWTN, Jewelry Television, and Music Choice. This package is $40 a month, although promotions may cut the cost. For some, this may be more than enough.

But most Comcast cable TV customers choose the Digital Starter package that also includes Limited Basic, Expanded Basic, MoviePlex, and Music Choice. The lineup includes just over 80 channels. This $69.95 package is still smaller than what Time Warner Cable offers its digital cable customers, leaving out networks including Cloo, CNBC World, Al Jazeera America, Discovery Fit & Health, Disney XD, DIY, a range of ESPN’s extra networks, EWTN, Fine Living, Fox Business News, Great American Country, IFC, Investigation Discovery, Lifetime Real Women, Military Channel, MLB, most of MTV’s extra networks, NBA, National Geographic Channel, NFL Network, NHL Network, most of Nickelodeon’s extra networks, OWN, Oxygen, Sundance, Turner Classic Movies, The Science Channel, and VH1’s extra networks. There are other channels left out of the lineup as well. But Digital Starter customers do get the full lineup of Encore movie channels, for which TWC charges extra. However, sports and old movie fans will be dismayed to find so many sports networks and Turner Classic Movies excluded. Comcast customers have to pay more to get them back in the lineup.

Those who can’t live without sports networks and TCM, among other networks noted above, will have to pay for Comcast’s 150+ channel Digital Preferred package. This tier brings back the cable channels you used to get with Time Warner Cable (plus Encore), but it costs an extra $17.95 a month. Check your current Time Warner Cable TV bill. Compare it against Comcast’s total combined charge of $87.89 a month for a comparable lineup. How much is your cable TV bill going to increase after Comcast takes over?

For those who want even more, Comcast offers Digital Premier, with more than 190 channels. This package includes Digital Preferred, HBO, Showtime, Starz, Cinemax and Comcast’s Sports Entertainment Package. It adds an extra $57.45 a month on top of the $69.95 Digital Starter package. That is $127.40 a month just for television service.

Time Warner customers looking for a DVR will probably be mystified by the way Comcast charges for DVR service. Comcast markets “whole house” DVR service much more aggressively than TWC. This service, dubbed AnyRoom, lets customers watch recorded shows on any set-top box-equipped television in the home, along with managing recordings. DVR service with Comcast costs an extra $8-10 a month, but Comcast also charges an “HD Technology Fee” of $9.95 a month to enable “whole house” service. Many higher end bundled packages incorporate the DVR service into the package, along with the Technology Fee.

At regular prices, a Comcast triple play customer should expect to pay $141.99 for the most bare bones TV, phone, and broadband package, $154.99 for the most popular package without premium channels, and $164.99 a month for a bundle that brings along a similar lineup to what TWC offers, along with Starz. Comcast’s nearest equivalent to Time Warner Cable’s $200 Signature Home service costs $239.99 a month and offers no better Internet speeds than what “regular” customers get.

Internet Plans

Comcast does offer faster Internet service than what Time Warner Cable has sold for the last 3-4 years, but it will likely come with a usage cap of 300GB per month, with overlimit fees applied to those who exceed their allowance. Internet-only customers are going to find higher prices for broadband service than what Time Warner Cable charges. Comcast prefers bundled service customers, and deters cord-cutters with extremely high Internet-only pricing.

Comcast’s Internet Tiers (The first price is for Internet-only service followed by the price, when different, for customers subscribing to more than broadband)

• Economy: 1.5Mbps/384kb (N/A)
• Economy Plus: 3Mbps/768kbps ($39.95 $29.95)
• Performance Starter: 6/1Mbps ($49.95)
• Performance: 25/5Mbps ($64.95 $51.95)
• Blast: 50/15Mbps ($74.95 $61.95)
• Extreme 105: 105/20Mbps ($114.95 $99.95)

Modem fees are extra unless you buy your own equipment.

Other Comcast Fees You Better Know About

Comcast charges a number of extra fees and surcharges that raise customer bills without affecting Comcast’s advertised prices. The ones we have not already covered are included below. Among our favorites: Comcast charging $20 to hound you at your front door for a past due payment, charging shipping/handling and other fees for “self-install” kits that save Comcast money not having to dispatch a technician to your home, installation -and- activation fees for extra outlets, and that $249 “go away” service charge for their 105Mbps broadband tier. It is important to note not everyone will pay these fees and promotions often waive some of them. Customer service representatives will also drop some of them when asked, and may remove them from your bill if you complain loudly enough.

Ancillary Service Fees You May Encounter

• Reactivation fees: Shut off for non-payment or vacation? Comcast charges $5 to reactivate Internet service, $5 to reactivate a phone line, and $1.99 to turn back on your cable television;
• Field Collection Charge: If Comcast sends someone to your residence to collect a past due balance or pick up unreturned equipment, there is a $20 charge per visit;
• Returned Payment Fee: $20 per returned payment;
• Late Fee: 5% of your account balance;
• Name Change Fee: $1.99;
• Pay by Phone Convenience Fee: Making a payment by phone with a customer care representative will cost $5.99 per payment;
• Copy of Bill: For bill statement copy requested by phone or in person, there is a $5 charge per bill;
• Unreturned/Damaged Equipment: Charged at the suggested manufacturer’s replacement cost.

Common Equipment Fees

• Signal Amplifier: $35/each
• Self-Install Kit Convenience Fee: $40
• Self-Install Kit Shipping & Handling: $9.95 (Standard Delivery)
• Self-Install Kit Shipping & Handling: $29.95 (Priority Mail)
• Remote Control Replacement by Mail (Separate Shipping): $5.95/each
• Voice/Data Modem (Used for customers with phone and Internet service): $8/mo²
• Wireless Gateway (Provides Wi-Fi service): $8/mo²
• Cienna 3931 Modem & Netgear Wireless Router: $19.95/mo
• Wireless Adapter (each, one-time charge): $30.00
• Limited Basic Only Service Converter: $1/mo
• Digital Converter: $2.50/mo
• Remote Control: $0.18/mo
• HD Digital Converter (Limited Basic Only): $2.20/mo
• Digital Adapter (Limited Basic Only): $0.50/mo each
• CableCARD: 1st card is free, each additional is $1/mo
• Customer-Owned Video Equipment Credit: $2.50/mo

Installation and Service Calls (May vary with promotions)

• Installation fee for one product: $32
• Installation fee for two products: $80
• Installation fee for three products: $90
• In-Home Service Call: $32.10
• Service Charge for Custom Installation Work: $33.20/hr
• Installation fee for additional outlets: $13.35/ea at time of new customer visit, $32.15/ea for existing customers
• Activation fee for additional outlets: $5.60/ea for new customers, $22.05/ea for existing customers
• Relocation fee for additional outlets: $13.60/ea for new customers, $28.55/ea for existing customers
• VCR/DVD Connection Charge: $7.90 for new customers, $16.35 for existing customers
• Upgrade/Downgrade Service Fee (no in-home visit required): $1.99 per instance
• Upgrade/Downgrade Service Fee (in-home visit required): $26.30 per instance of an upgrade, $12.05 per instance of a downgrade
• Upgrade Standard Definition DVR or HD DVR Service: $26.30

Broadband-Specific Installation/Service Charges

• Additional IP Address (first): $4.95/mo
• Additional IP Addresses (second and/or third) $9.00/mo each
• Professional Internet Installation: $99.95
• Wireless Networking On-Site Professional Set-up (up to 4 devices per trip): $49.95
• Wireless Networking On-Site Professional Set-Up (extra trips): $99.95/ea
• Wireless Networking On-Site Professional Set-Up (each additional device over 4): $29.95/ea
• Broadband-related In-Home Service Visit: $40/per trip
• Extreme 105Mbps Broadband Professional Installation/Activation Surcharge: $249.00

¹The rates and services quoted in this piece were taken from Comcast’s current rate card for Cambridge, Mass. Rates and services may vary slightly in other markets. The rate card was effective June 2013.
²Comcast charges $7 a month for their modem rental in certain other markets.

Verizon FiOS expansion is still dead while cash cow Verizon Wireless will continue to get the bulk of Verizon’s attention this year, according to a top executive.

Verizon chief financial officer Fran Shammo delivered the latest quarterly financial results to Wall Street analysts Tuesday and had few specifics about how the Cadillac of wireless carriers will handle increasingly meddlesome competition from T-Mobile, which has torn up the comfortably profitable mobile industry’s business plan and threatened to launch an all-out price war.

Verizon Wireless remains a major earner for Verizon, delivering nearly $18 billion in revenue and $8.3 billion in adjusted profitability during the last quarter alone. Verizon is relying on the quality of its network to keep customers from bolting to less expensive competitors. This month, T-Mobile announced it was prepared to cover the early termination penalty of AT&T customers ready to switch. It’s only a matter of time before Verizon customers are treated to a similar offer and that worried investors enough to send Verizon’s share price downwards even though the company beat analyst’s earnings estimates.

Clues about Verizon’s game plan for 2014 became clearer as Shammo took questions and outlined the company’s strategy.

Wireless Will Get Most of Verizon’s Attention

Again this year, Verizon Wireless will get the bulk of Verizon’s attention and financial resources. Verizon Wireless finished 2013 with $81 billion in wireless revenue — up $5.2 billion from 2012 — which represents two-thirds of Verizon’s total earnings. The wireless business has delivered a profit margin of 49% or higher for five of the last seven quarters.

Where do the increased earnings and profits come from?

“Service revenue growth continued to be driven by more customers and devices, increase of data usage, and smartphone penetration,” said Shammo. “Our Share Everything Plans are doing exactly what we expected — driving device adoption and stimulating higher usage — resulting in increases in both the number of devices and revenue per account.”

Shammo said little about the spectrum shortages Verizon claimed were responsible for an end to unlimited use data plans in favor of usage-capped, consumption-based billing. On the contrary, Shammo admitted Verizon expects to grow average revenue per account and profits on the back of usage billing as customers boost wireless data usage and have to upgrade to higher-priced plans in the future. Shammo also noted the company’s restrictions on early upgrades and charging upgrade/activation fees have delivered more revenue to Verizon and deterred customers from phone upgrades, which saves Verizon money.

Verizon Wireless customer bills rose an average of 7.1 percent during the fourth quarter to more than $157 per month.

“We have seen consistent growth in this metric,” said Shammo. “For the full year, average revenue per account was up nearly $10 or 6.9%.”

Some of that increase is attributable to Verizon’s higher cost Share Everything plans, which often cost customers more than the plans they abandon.

Share Everything = a higher Verizon Wireless bill for many customers.

“In just 18 months more than 46% of our postpaid accounts are on these plans,” said Shammo. “In 2013 we effectively doubled the number of accounts on Share Everything from 8.1 million to 16.2 million.”

In the coming year, Verizon plans to spend up to $17 billion on network maintenance and expansion, but the bulk of it will be spent on the wireless side of the business. Verizon has again cut investment in its wired networks.

Shammo noted Verizon Wireless plans to repurpose some of its 3G spectrum to 4G LTE service this year, which cuts costs for Verizon while stimulating usage which will eventually force many customers into data plan upgrades.

“If you look at a 3G usage moving to a 4G, we know that — and we have seen it in our base — as soon as you get on the 4G with video consumption and the quality of video your usage goes up,” said Shammo.

Verizon FiOS Expansion is Still Dead

Verizon has no plans to expand its FiOS fiber network beyond the areas where the company previously signed franchise agreements several years ago. In fact, Shammo is already reallocating money that in years past targeted FiOS expansion, shifting it to Verizon Wireless.

Verizon’s FiOS expansion is still dead. No plans for further expansion in 2014.

Shammo added Verizon will continue upgrading to fiber and decommission its copper network within existing FiOS areas, pushing customers with traditional landline service to basic FiOS phone service.

For those bypassed by FiOS, Shammo indicated it will be business as usual for Verizon, still selling DSL and phone service. But he hinted that within three years, Verizon might be open to selling off wireline customers in non-FiOS areas if a company approached Verizon with a lucrative deal. Verizon is under increased regulatory scrutiny in states like New York where there is concern Verizon is diverting resources away from deteriorating landline infrastructure in favor of its unregulated wireless network.

Shammo admitted Verizon stepped back from competing as hard as usual with cable competitors during the third quarter, believing consumers don’t want installers in their homes during the holiday season. As a result, the number of new FiOS customers was down from October-December. But with recent rate increases and voluntary upgrades, revenue remains up. With less than one million potential customers in the FiOS footprint still waiting for the fiber network to arrive, Shammo was comfortable stepping back from promotions temporarily.

Verizon FiOS has been highly successful for Verizon’s wireline division, now representing about 73% of Verizon’s consumer revenue. More than half of Verizon’s FiOS customers have upgraded to FiOS Quantum Internet speeds, starting at 50Mbps. With that kind of success, what holds Verizon back from further expanding FiOS? Verizon’s current CEO Lowell McAdam comes from a Verizon Wireless background and seems preoccupied with the wireless business. Wall Street is also firmly against Verizon increasing investment in fiber when diverting that spending to high-profit wireless can earn a much faster, more lucrative return.

Those lucky enough to have FiOS will continue to see upgrades in 2014. Chief among them is a new proprietary router that will assure Wi-Fi service in the home more closely matches the broadband speeds customers are buying, up to 100Mbps or more.

Verizon’s Intel OnCue Acquisition Doesn’t Mean Online Cable Competition is Coming

Despite a piece in GigaOM suggesting Verizon’s acquisition of Intel’s OnCue technology was all about competing head-to-head with Comcast, Shammo downplayed any expectation Verizon was about to declare war on  that cable company or anyone else:

Shammo

As far as the OnCue acquisition, look, the focus here is really to accelerate the availability of the next-generation IP video service which we will integrate into the FiOS video service. And really what we are trying to do is differentiate this even more so with fiber to the home versus others with the TV offerings and reducing the deployment costs. And this really accelerates us from if we were trying to build IP TV versus buying the IP TV technology.

From an FiOS customer perspective, we expect the benefits that they will have more elegant search and discovery activity and cost stream ease of use. But also keep in mind, with the acquisition of Verizon Wireless and becoming 100% ownership of that we also plan to take that platform and integrate it more deeply with our Verizon Wireless 4G LTE network. So that really was the strategy behind this.

 Verizon Wireless Has Enough Spectrum for the Next 3-4 Years

Shammo told investors Verizon Wireless has plenty of wireless spectrum to meet customer needs for the next 3-4 years, but he did outline Verizon’s short-term plans on spectrum management:

As far as our portfolio, obviously we like the 700 megahertz for the coverage of the LTE that we did. AWS is our sweet spot at this point in time, which is the spectrum that we have been swapping for [with competing carriers], so we have a very efficient portfolio of spectrum and I think we have shown through the years that we are very efficient on how we use spectrum.

Keep in mind that, as I said, we will participate in the auctions because we will need more spectrum, but right now our current position is that with the AWS that we have and that we are launching in markets that you know in New York and San Francisco, Chicago we are lighting that spectrum up. It is pretty much completed in New York. We will continue to add to that, but keep in mind though too that we will also re-appropriate our 3G spectrum to 4G.

So we will take that PCS spectrum that has been running in our 3G network — as the volume of that network continues to decrease as we move more 3G phones to 4G, we will bring re-appropriate that spectrum over to the 4G LTE. So three to four years we are in very good shape from a spectrum holding position, but we will participate in the upcoming auctions.

Millenicom customers have had their ups and downs over the last two weeks coping with e-mail notifications they would lose, keep, and once again lose their unlimited wireless data plan.

Just a day after Millenicom heard that Sprint would allow them to continue selling Unlimited and Bring Your Own Device plans, the wireless carrier best known for its “unlimited for life” offer changed its mind:

We are very sorry to report that Sprint has reversed their decision from yesterday and terminated their agreement with the gateway for our Unlimited and BYOD accounts.

We are not certain how long until the accounts will be closed.

We will be shipping out Hotspot devices to those clients who had opted for that solution and BMI.net is ready to fulfill orders for those choosing to go with them.

We have attempted to keep you informed every step of the way and avoid any abrupt transition. We apologize that we weren’t able to come through.

Thank you for allowing us to be of service and please accept our sincere wish for your future success.

Dennis Castle
Owner

It is not the first time Millenicom has had problems with Sprint, which has proved to be a difficult carrier to deal with with respect to unlimited use plans.

Sprint’s decision is a major blow to rural Americans who lack access to cable or DSL broadband and are forced to consider satellite-delivered Internet access or pay even more for wireless data plans that come with puny usage caps, overlimit fees or speed throttles.

There are a few alternatives, but since these providers resell access to Sprint-owned networks, all are potentially vulnerable to Sprint’s evolving views on resellers:

Blue Mountain Internet (BMI) offers an “unlimited plan” that isn’t along with several usage allowance plans. BMI strongly recommends the use of their Mobile Broadband Optimizer software that compresses web traffic, dramatically improving speeds and reducing consumption:

Monthly Plans

• $39.99/Month – 1 Gig Data (** up to 3GB compressed) ($25/GB Overlimit Fee)
• $59.99/Month – 3 Gig Data (** up to 9GB compressed) ($20/GB Overlimit Fee)
• $79.99/Month – 5 Gig Data (** up to 15GB compressed) ($20/GB Overlimit Fee)
• $99.99/Month – 10 Gig Data (** Up to 45GB compressed) ($15/GB Overlimit Fee)

• $79.99/Month – Unlimited (Bring Your Own Device) – BYOD
• $99.99/Month – Unlimited Data (S Network) ***

There is a $100 maximum on overlimit fees, but BMI reserves the right to suspend accounts after running 3-5GB over a plan’s allowance to limit exposure to the penalty rate. The compression software is for Windows only and does not work with MIFI devices or with video/audio streaming. BMI warns its wireless service is not intended for video streaming. Customers are not allowed to host computer applications including continuous streaming video and webcam posts that broadcast more than 24 hours; automatic data feeds; automated continuous streaming machine-to-machine connections; or peer-to-peer (P2P) file-sharing.

EVDODepotUSA offers two truly unlimited use plans starting at $119 a month. The company is only contracted to offer access to Sprint’s woefully congested 3G network and the Clear 4G WiMAX network that typically does not offer much coverage in rural areas. LTE access is not currently available. There is a six month contract obligation, but the company also offers a 10-day free trial.

Their current plans:

Wireless ‘n Wifi offers two partly unlimited plans with no contract commitment. The company charges a refundable deposit on devices, but they become yours to keep after two years:

• Unlimited 4G Sprint/Clear WiMAX with 3G Fallback ($58.99) offers unlimited WiMAX service but has a 5GB cap on Sprint’s 3G network, the network rural customers will encounter the most. Total start-up fee is $194.93 which includes an activation fee, modem deposit (refunded upon modem return or after 24 months of service), the first month of service, and shipping for the wireless device.
• Unlimited 4G LTE with WiMAX and 3G Fallback ($79.99) offers unlimited Sprint 4G LTE and Sprint/Clear WiMAX service with a 35GB cap on Sprint’s 3G network. Customers can select a dual-band device that supports LTE and 3G service for $246.93 (includes activation fee, modem upcharge fee, first month of service, shipping, and refundable $100 modem deposit). Customers looking for access to LTE, 3G, and WiMAX can choose a tri-band device for $315.93 (includes activation fee, modem upcharge, first month of service, shipping and refundable deposit.) Keep in mind Sprint’s 4G LTE network is still very spotty.

To many, Provo, Utah might seem an unusual choice to follow on the heels of Google’s earlier announcement its gigabit fiber network was headed to Austin, Tex.

Provo is only the third largest community in Utah — Salt Lake City and West Valley City are bigger — and the community already has a fiber network called iProvo. So why build another one?

Google won’t have to.

But first some background:

iProvo was envisioned a decade ago as a public-private partnership — a fiber to the home network owned by the public with private service providers using it to sell broadband and other services . iProvo taught an early lesson about municipal broadband — large cable and phone companies routinely boycott participation in any network they do not own and control themselves.

In 2003, the president of Qwest’s Utah division made clear their intentions: “Fiber optic’s capabilities are way more than what most consumers need in their homes. Why provide a Rolls Royce when a Chevrolet will do?”

Comcast, the dominant local cable operator, also “went ballistic” according to former mayor Lewis Billings.

iProvo can be yours for just $1.

“One hired a PR firm and a telemarketing company to make calls to citizens,” Billings recalled. “They also placed full-page ads and ultimately hired people to picket City Hall. It was a bruising fight.  My favorite picket sign had a piece of telephone wire taped to it and read that I and one of my key staff members were, ‘a Twisted Pair.’”

With both Qwest and Comcast wanting nothing to do with the project, smaller independent ISPs had to fill the gap. It was a difficult sell, particularly because Qwest and Comcast blanketed Provo residents with a misinformation campaign about the network and pitched highly aggressive retention offers to keep customers with the phone and cable company. iProvo has been in financial distress ever since.

Former Provo city councilwoman Cynthia Dayton remembers being on the council when iProvo was approved and believes the public-private network was a decade before its time.

“Ten years ago it was worth the vote on iProvo,” she told the Daily Herald. It was one of the most difficult decisions but it was for the future.”

More than a year ago, Google noticed the city of Provo issued a request for proposals on what to ultimately do with iProvo.

Google became interested because Provo is seen as a city with hundreds of technology start-up companies and maintains a vibrant tech hub. The city also ranked highly for the enormous value it places on connectivity and community — something the approval and construction of iProvo demonstrated.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Provo Google Fiber 4-13.mp4[/flv]

Why Provo? Google considers the city’s rankings. (1 minute)

City officials and Google executives began quietly talking more than a year ago about Google buying the public-private network. A key selling point: the city was willing to let the operation go for a steal — just $1.00. In return, Google promised to invest in and upgrade the network to reach the two-thirds of Provo homes it does not reach. Google says iProvo will need technology upgrades in the office, but the existing fiber strands already running throughout the city are service-ready today.

Val Hale, President of the Utah Valley Chamber of Commerce, said a quick “back of the envelope” estimate put Google’s anticipated investment in iProvo network upgrades at $18 million, according to the Deseret News. Unfortunately, taxpayers will still need to pay off about $40 million in bonds the city accumulated for iProvo’s initial construction costs.

Curtis

Current Mayor John Curtis says he has made the best out of a difficult situation.

“We have maximized what we have here today,” said Curtis. “It’s about maximizing what we have. I believe in the long-term it will pay dividends many times greater than what we paid into it, but it’s going to take a while to realize that dream.”

Google promised free gigabit Internet service to 25 local public institutions including schools, hospitals, and libraries. Residential customers will be expected to pay $70 a month for 1,000Mbps service or get 5Mbps broadband service for free up to seven years.

Google’s investment in Provo is anticipated to be far lower than in Austin and Kansas City — cities where it needs to build a considerable amount of fiber infrastructure from scratch. With existing fiber already in place in Provo, Google’s gigabit service will be available by the end of this year, at least six months faster than in Austin.

With reduced construction costs, Google will only ask new customers for a $30 activation fee, far less than the $300 Google will ask Austin and Kansas City residents to pay if they do not sign a multi-year service contract or only want basic 5Mbps service.

Google sees the opportunity to use its fiber network in an ongoing effort to embarrass other broadband providers into investing in speed upgrades.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/KSL Salt Lake City Google Fiber Coming to Provo 4-17-13.flv[/flv]

KSL in Salt Lake City reports Google Fiber is coming to Provo. Last year Google began talking with the city to acquire its iProvo municipal fiber network.  (3 minutes)

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/KSTU Salt Lake City Google Fiber coming to Provo 4-17-13.flv[/flv]

KSTU in Salt Lake City reports taxpayers are still on the hook for around $40 million in bond payments to cover the construction costs of iProvo. But Google Fiber will stop other Internet providers from “cheating everyone” says one local Provo resident.  “[Other ISPs] give you the slowest connection possible and charge you a ridiculous amount for it,” said Haley Cano. (4 minutes)

[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/KTVX Salt Lake City Google Fiber in Provo 4-17-13.mp4[/flv]

KTVX in Salt Lake had some trouble navigating the difference between a gigabit and a gigabyte, and confused what Google services will be sold and which will be available for free in this report, but the ABC affiliate covered the unveiling with both city and Google company officials on hand.  (2 minutes)

[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/KTVX Salt Lake City Google Fiber Details in Provo 4-18-13.mp4[/flv]

This morning, KTVX did a better job in this interview with the mayor of Provo and Google’s Matt Dunne, who says Google believes speed matters and current ISPs simply don’t offer enough.  A key factor to attract Google’s interest is a close working relationship with the cities that want the service. (2 minutes)

AT&T is accelerating the demise of its own landline business with a new wireless home phone product that is cheap for voice calls but could spell the end of your DSL service in certain cases.

AT&T Wireless Home Phone service provides contract-free unlimited nationwide voice calling for $20 a month ($10 if you are already an AT&T wireless phone customer sharing your Mobile Share minutes).

The service includes a base station ($99.99 prepaid or free with two-year contract) that receives AT&T’s wireless signal and integrates with your existing home telephones. The landline replacement includes caller ID, call waiting, three-way calling and voice mail. There is a $36 activation fee, a “Regulatory Cost Recovery Charge” of $1.25 per month and all the local taxes and surcharges that go with your current landline. Unless choosing the prepaid option, an early termination fee up to $150 applies. The restocking fee for customer returns is up to $35.

In certain cases, forfeiting your landline could mean the end of your DSL service if you do not remind the phone company you want to keep your broadband service intact. If you don’t AT&T and other phone companies might disconnect all of your services.

There are other caveats:

• Call quality is only as good as AT&T’s network and reception in your home;
• Caller ID only includes the calling party’s number. No name information is provided;
• Emergency 911 calls lack exact geographic information, which could make locating a caller more difficult;
• The service is unregulated and has no local or state government oversight to guarantee call quality and reliability;
• If power fails, an internal backup battery can keep the system running for up to 36 hours or 3.5 hours of talk time;
• The service cannot be used with home security systems, fax machines, medical alert systems, credit card terminals, dial-up Internet, or other data services.

Verizon Wireless offers their own version of this service: Wireless Home Phone Connect, for about the same price. It gets mixed reviews from owners because of complaints about call quality.

[flv width=”640″ height=”372″]http://www.phillipdampier.com/video/ATT-Wireless-Home-Phone 3-27-13.flv[/flv]

AT&T’s product promotion of its wireless home phone service. The pricing information in this video was intended primarily for existing AT&T wireless customers and is slightly outdated. (1 minute)