Charter Communications this week reduced prices on multi-line unlimited data plans.

A customer with one line of unlimited data service will continue to pay $45 a month for the plan, but each additional line of unlimited data will now cost $29.99 a month — a $15 reduction from Spectrum’s old pricing.

Xfinity Mobile, Comcast’s similar wireless service, already cut multi-line unlimited pricing to $30 a month back in April 2021.

Rutledge

Charter CEO Thomas Rutledge told investors last spring that he wanted to drive customer growth in Charter’s mobile phone offering by slashing mobile service pricing.

“Our goal is to do the same with mobile in our service area as we did with wireline voice, where we made Charter the predominant wireline phone carrier by reducing consumer telephone bills by over 70%, meaning Charter can grow for a long time because we remain under-penetrated and our growth will reduce customer costs,” Rutledge said.

For several years, Charter charged most bundled customers $10 a month for a flat-rate, unlimited long distance home phone line. The company raised prices $3 a month for landline service earlier this year, but claims it still delivers significant savings over traditional landline service.

Both Charter and Xfinity Mobile operate their wireless mobile services using a combination of Wi-Fi calling and roaming on Verizon’s 4G and 5G networks. Customers must agree to bundle home broadband service to get the lowest mobile pricing. If a customer drops internet service, mobile pricing increases $20/mo per line.

Charter’s new pricing undercuts T-Mobile, AT&T, and Verizon:

Service pricing for two-line unlimited data plans

• Spectrum Mobile: $75/mo
• T-Mobile: $105/mo
• AT&T: $125/mo
• Verizon: $130/mo

Two months after a late July thunderstorm interrupted phone and internet service for some CenturyLink customers in parts of Albemarle County, Va, some are still waiting for the phone company to restore service.

Multiple CenturyLink customers around the area told The Daily Progress about the extended outage, and the company’s lack of responsiveness in restoring service. Many report their service appointments are unilaterally canceled or a repair technician just never shows up. Others are receiving messages the repairs are complete, but they still have no service.

Mobile phone service is spotty in this part of central Virginia, so many customers keep their landlines to reach emergency services. With service out for nearly two months, making emergency calls or accessing the internet has been difficult.

In August, CenturyLink employee Derek Kelly told attendees at a Albemarle Broadband Authority meeting that at storm brought down almost a mile of CenturyLink’s legacy copper wire network, which has been in place for decades. Kelly noted CenturyLink intended to replace the damaged copper wiring with more copper wiring, instead of upgrading to fiber optics, and because of supply chain issues, customers have been left waiting.

“We ran into logistical issues of being able to find that length of copper,” Kelly said. “I think between COVID and everything else, supplies are limited, so it took us longer than we typically hope for to get the copper in place and get it in town and get it hung back up and spliced in.”

So far, customers are still being billed for service they do not have, and the company has refused to issue automatic credits for customers left without service. Some customers want CenturyLink to compensate them extra for interrupted service as well as for the company wasting their time on unfulfilled service calls and being left on hold, sometimes for an hour, trying to resolve the problem.

Firefly is a service of municipal/co-op power companies in central Virginia.

Albemarle County Supervisor Donna Price has been hearing complaints from local residents for weeks and she is also well aware CenturyLink is in the process of selling a large part of its legacy local phone operations in 20 states to Apollo Global Management, a private equity firm. The phone company will keep its most profitable customers in 16 states — many already served by fiber optics, under its Lumen brand. As that sale waits to close, Price believes CenturyLink has already walked away from their soon-to-be ex-customers.

“I believe that corporate CenturyLink has basically given up and has abandoned their responsibility, which leaves it all upon the individual consumers to either seek some sort of collective relief or basically just suffer until a new provider comes in,” Price told the newspaper. “I think CenturyLink has failed in customer service, in the delivery of service and, I’ll be a little more generous, in the recovery from the storm, because those are really difficult situations.”

Some customers in nearby Fluvanna County who have also experienced multi-month service interruptions from CenturyLink were lucky enough to have a choice of broadband providers, and many have switched to Firefly Fiber Broadband, which also supplies landline phone service. Firefly is owned and operated by a partnership subsidiary that includes the Central Virginia Electric Cooperative. That fiber to the home network has survived serious storms in the past without lengthy service interruptions. The member-owned cooperative has also invested heavily in fiber broadband and communications services its members demand, and if something goes wrong, local repairmen answerable to local supervisors are on hand to manage any issues.

Firefly Fiber is currently looking to expand its operations within its central Virginia service area, which includes the counties of Albemarle, Appomattox, Buckingham, Cumberland, Fluvanna, Goochland, Greene, Louisa, and Powhatan.

The United States is rapidly losing its place among the world’s fastest broadband countries, dropping out of the top-10 this year and falling behind Chile, Liechtenstein, and Romania.

While other countries and internet providers are investing billions to improve their standing in an increasingly competitive global broadband marketplace, a comfortable duopoly of phone and cable companies in the United States has successfully kept regulators at bay and allowed many of the largest internet service providers to divert investment away from upgrades and towards stock buybacks, dividend payouts, debt reduction, and ongoing merger and acquisition activities.

Internet speed testing firm Ookla has watched the United States slip in its fixed broadband speed standings over the last three years, dropping from 8th place (2019) to 9th place (2020), to being dropped from its top 10 list this year (it now scores 14th). Canada has never made the list.

This year, the countries with the fastest internet download speeds are: Monaco, Singapore, Hong Kong, Thailand, Romania, Switzerland, South Korea, Chile, Denmark and Liechtenstein. The only other countries to fall off the top-10 list in the last three years are Taiwan, Andorra, Macau, and France.

Globally, wireless internet speeds are benefitting from 4G and 5G upgrades on cell towers, with overall speed increasing nearly 60% in the last year. Fixed broadband speeds are up 32% year over year, primarily from an increase in the amount of fiber to the home connections providers are making as they move away from traditional copper wiring. Heavy investment in network upgrades can deliver remarkable boosts in internet speeds.

“South Korea and the United Arab Emirates stood out with mean mobile download speeds that were more than 240% faster than the global average and fixed broadband downloads that were more than 70% faster than the global average,” said Ookla’s Isla McKetta. “China’s mobile download speed was more than 180% faster than the global average and the country was more than 70% faster than the global average for fixed broadband. Switzerland’s mobile and fixed broadband download speeds were close to 100% faster than the global average.”

All of those countries have invested heavily in fiber connectivity for both their mobile and fixed wired broadband connections.

In contrast, U.S. cable companies have delayed upgrades to DOCSIS 4.0, capable of supporting 10 Gbps connections, and many telephone companies have dragged their feet on fiber upgrades, facing resistance from Wall Street as well as heavy debt burdens from prior mergers and acquisitions.

Most of the countries ranking the fastest have pushed providers to supply gigabit internet speed connections, but U.S. regulators and politicians have reduced pressure on large providers by proposing to subsidize millions of expanded internet connections with U.S. taxpayer funds while reducing required speed minimums to just 100/20 Mbps.

After weeks of tense negotiations to secure bipartisan support for the Biden Administration’s $1 trillion infrastructure stimulus measure, the White House appears to have largely capitulated to Republican efforts to water down funding to expand broadband service into a $65 billion package that will doubtless be a financial bonanza to the country’s largest phone and cable operators.

The Biden Administration’s original proposal for $100 billion in broadband funding was dedicated to wiring rural areas as well as focusing funding on new entrants like community-owned networks that could deliver internet access to unserved and underserved locations without having a profit motive. The original proposal also would have prioritized funding for future-capable fiber internet, with some advocating that networks be capable of delivering at least a gigabit of speed to customers to qualify for funding. The Administration also promoted the idea of affordable broadband, combatting the growing digital divide exacerbated by internet pricing out of reach of the working poor.

What emerged on Sunday as a “bipartisan agreement” with Republicans on infrastructure stimulus is almost a travesty — slashed almost by half and now effectively a veritable gift to Big Telecom. The industry spent hundreds of millions lobbying Congress and got almost everything it wanted. If passed in its current form, those same phone and cable companies will pocket much of the money for themselves.

Here is how consumers were sold out:

Reduced speed requirements are a dream come true for cable operators.

The bipartisan measure proposes to water down speed requirements to qualify for government stimulus funding to a underwhelming 100/20 Mbps. That speed is tailor made for cable operators, which traditionally offer upload speeds just a fraction of their download speeds. Gone is any condition requiring gigabit-capable networks, at a time when more providers than ever are marketing near-gigabit speeds. That could quickly lead to the emergence of a speed divide, with rural Americans stuck with slower broadband technology from companies that will have no financial incentive to upgrade in these areas.

Addressing affordability is now mostly wishful thinking.

The latest proposal’s idea of solving the broadband affordability issue is to admit there is a problem and declare the need for some kind of low-cost broadband option, but apparently does not specify pricing, who is qualified to get cheaper service, and who will oversee that such programs remain affordable. That allows providers to keep writing the rules of their own token, voluntary efforts to offer discounted internet, like those that disqualify current customers and requires enrollees to jump through various qualification hoops to sign up. The stimulus program will also spend billions of dollars effectively paying a portion of disadvantaged Americans’ internet bills, at the current high prices many ISP’s charge. That is a direct subsidy to big cable and phone companies that can continue charging whatever they please for access, knowing the government will now pay $30-50 of the bill.

Republicans have made sure there is not a whiff of rate regulation or consumer protection mandates in the measure. It also abandons establishing a fixed rate, affordable internet tier for as little as $10 a month. That original proposal would have given cable and phone companies as little as $10 a month from the federal government, much less than collecting up to $50 a month from the Emergency Broadband Benefit, which pays a portion of regular-priced service. The $14 billion being set aside to continue subsidizing Americans’ internet bills at Big Telecom’s monopoly or duopoly prices could be better spent building and expanding internet services where no service or competition exists now.

Digital redlining is A-OK

The watered down compromise measure chastises companies for only incrementally expanding fiber service, mostly to wealthy neighborhoods, but stops short of banning the practice. This wink and a nod to redlining primarily benefits phone companies like AT&T and Frontier, which can now cherry-pick rich neighborhoods for fiber upgrades most likely to return the biggest profits. Phone companies and fiber overbuilders will continue to skip over urban poor neighborhoods and the highest cost rural areas which have always been the hardest to reach.

Sky is the Limit pricing with onerous data caps are fine with us.

Nothing in the measure will give preference to providers willing to offer affordable, flat rate service without the hassle of data caps. Neither will it discourage applicants that plan to use public tax dollars to subsidize expanding service that comes at high prices and with paltry usage limits.

Light Reading reported Wall Street analysts were generally pleased with the outcome, noting the negotiations resulted in stripping out oversight and price regulation and the measure won’t fund potential competitors. It also noted Big Telecom and its associated trade organizations spent more than $234 million on lobbying. Comcast topped the list of spenders at more than $43 million, with AT&T coming in second at $36 million. Both the cable and wireless industry also spent tens of millions on lobbying. They got their money’s worth. Taxpayers won’t.

Cuomo

As expected, New York’s efforts to lower broadband pricing through a state mandate has been effectively killed in a Brooklyn federal court, putting an end to Governor Andrew Cuomo’s efforts to require providers to offer a $15 broadband tier to income-challenged state residents.

U.S. District Judge Denis R. Hurley, who signed a preliminary injunction preventing the mandate from taking effect on June 15, signaled the concept was likely unlawful in a memorandum attached to the injunction. Several telecom companies challenged the mandate in a lawsuit heard in Hurley’s courtroom, claiming states have no regulatory authority to set broadband terms or pricing. Hurley was clearly persuaded in their direction, and was pessimistic the state could ever show a legal way to regulate internet pricing, something currently reserved to the FCC. As a result, a settlement has been proposed dropping the affordable pricing mandate.

Hurley was also moved by arguments from several smaller New York providers that claimed the new mandate would force them to sell service below cost. Empire Access, a fiber to the home overbuilder based in Prattsburgh, filed a declaration with the court threatening to cancel a major expansion project to wire customers in Livingston and Broome counties, including the city of Binghamton, if the mandate was implemented, because it would likely lose federal funding.

Because of the state’s definition as to who would have qualified for the affordable broadband tier, many smaller companies in rural, economically challenged area of upstate New York claimed they would face substantial economic losses to their businesses. Empire claimed it would lose “approximately $2 million per year,” Heart of the Catskills claimed top-line revenue would decrease $1,364,000 annually, Delhi Telephone claimed it would lose at least $90,000 per month, and the Champlain Telephone Company notified the court that “nearly half (48%) of its existing broadband customers will qualify for discounted rates,” causing the company to lose money on each customer.

“While a telecommunications giant like Verizon may be able to absorb such a loss, others may not,” Judge Hurley wrote in his order.

Gov. Cuomo bristled after learning of the lawsuit, threatening to revoke the franchise of any company that refused to implement the  state’s affordable broadband program. But the governor has made empty threats before, including a promise in 2018 to revoke the merger of Charter Communications and Time Warner Cable because the company failed to live up to the deal commitments it made to state regulators. A settlement was eventually reached between the cable giant and the state, and it appears a settlement between the plaintiff telecom companies and the state will also end this dispute and lawsuit. It appears the state has capitulated and plans to walk away from the affordable broadband proposal, although it reserved the right to appeal the case.

Stop the Cap! predicts the state will work with larger providers to increase public knowledge of the companies’ existing affordable internet programs, which usually have similar qualifications to the affordable internet law Cuomo proposed. Cuomo Administration officials will also likely lobby the Biden Administration to toughen federal oversight of broadband service and suggest a possible federal mandate for an affordable service tier and a return to net neutrality under a regulatory framework that opens the door for future price and service regulation.

The court decision signals states the solution to broadband affordability will not be found in state laws or mandates that attempt to regulate broadband pricing, at least until the current federal law changes.