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AT&T Keeps Discounting Service: DSL ‘Elite’ 6Mbps Plan $19.95/Mo or U-verse 12Mbps: $25/Mo

If you are a current AT&T DSL customer, there is no reason you should be paying regular prices for their usage-capped broadband.  With the implementation of their 150GB usage cap on DSL (250GB on U-verse), now is a good time to call AT&T and tell them you are upset they reduced the value of your account with a usage limit.  But hint you may be persuaded to stay if you can sign up for the same deal some of your friends are getting.

At present, those deals include:

  1. One year of AT&T DSL Elite service (typically 6Mbps) for $19.95-24.95 a month (this is the easiest deal to get and renew, even if you already took advantage of it — start by asking for the lowest price, but be willing to agree to the higher price if they won’t grant your first request — the price varies in different regions.)
  2. One year of AT&T DSL Pro service (typically 3Mbps) for $14.95 a month;
  3. One year of AT&T U-verse 12Mbps broadband for $25 a month.

These promotions should work for “naked DSL” (broadband service only) and for current customers who already subscribe to AT&T service.

You can get these offers by calling AT&T Retentions Department directly at:

  • Midwest: 1-866-918-8377
  • Southwest: 1-888-387-6270
  • California: 1-877-377-0415
  • Connecticut: 1-877-235-2293

If your promotion is about to expire, call and ask them to extend it.  They usually will.

Broadband Life in Idaho: Bears Rubbing Against Towers Knock Out Internet Service

Phillip Dampier September 15, 2011 Broadband Speed, Cable One, CenturyLink, Competition, Data Caps, Editorial & Site News, Public Policy & Gov't, Rural Broadband Comments Off on Broadband Life in Idaho: Bears Rubbing Against Towers Knock Out Internet Service

(Courtesy: Pando Networks)

Bears who fancy a good rub up against wireless Internet transmission towers were blamed for knocking out service for customers in the Potlatch area one day, a problem unique to rural communities who make due with whatever broadband access they can find.

Such is life in rural Idaho, deemed by Pando Networks to be America’s slowest broadband state, with average Internet speeds of just 318kbps.

Stop the Cap! reader Jeff in Pocatello is happy the big city New York Times has noticed Idaho’s online challenges.

“Please take notice of this newspaper article about our online experience here in Idaho,” Jeff writes. “While it underplays the near-total failure of our state legislature to recognize there –is– a broadband problem here, at least the rest of the country will understand just how bad Internet access remains in rural America.”

Jeff should know.  Pando Networks calls Pocatello America’s slowest Internet city.  It’s no surprise why.  Pocatello residents are stuck between a rock — the infamous Internet Overcharging leader Cable ONE (incidentally owned by NY Times‘ rival The Washington Post), and a hard place — Qwest/CenturyLink DSL.

Nobody does Internet Overcharging better than Cable ONE, which baits customers with high speed access and then ruins the deal with an $8 monthly modem rental fee, infamously low usage caps and a two-year contract plan that subscribers call a ripoff.

“Cable ONE never heard of a square deal because they break every consumer rule in the book,” Jeff says. “Although the company pitches speeds up to 50Mbps, they tie it to a two-year contract that only delivers one year at that speed.  After 12 months, they reduce your speed to just 5Mbps for the entire second year, and if you cannot convince the customer service representative to renew and reset your 50Mbps contract for an additional year, there is nothing you can do about it.”

THE Internet Overcharger

Cable ONE has written the book on usage limits.  Customers paying for “blazing fast 50Mbps speed” get to consume a maximum of just 50GB per month (100GB for triple play customers) before overlimit fees of $0.50/GB kick in.  Other Cable ONE plans include daily usage limits of just 3GB, which can make Netflix viewing difficult.

“Cable ONE makes you ration your Internet like satellite providers do, and it’s very irritating because they tease you with fast speeds you literally cannot use unless you are willing to pay a lot more,” Jeff says.

The alternative for most Idahoans is DSL, if Qwest/CenturyLink provides it.  In many areas, they don’t.

“You can be a mile out of Pocatello’s city center and be told there is no DSL, and those that do get it often find it working at 1-3Mbps,” he adds.

In a country now rated 25th in terms of Internet speed, Idaho is comparatively a bottom-rated broadband disaster area.  The state secured 11 federal broadband grants to deliver some level of service in communities across the state, at a cost of $25 million.

The Slow Lane

But ask some local officials about the quality of broadband in Idaho and you find a lot of denial there is even a problem.

The Times got a brusque response to their inquiries about broadband service from the executive director for the Bannock Development Corp., a business development group.  Gynii Gilliam told the newspaper things were just fine, at least for large businesses in cities like Pocatello.

“The last thing I need is a report that says we don’t have the capacity and speed, when I know it exists,” Gilliam said. She noted that Allstate Insurance was opening a $22 million call center in Pocatello and that the Federal Bureau of Investigation has a service center there. “We have not lost any business because of Internet speeds,” she said.

Which proves the old adage that you can have just about anything, for the right price.  The disparity between residential and business broadband — urban and rural — is particularly acute in mountain west states like Idaho.  Verizon was considering rural Wyoming for a multi-billion dollar high speed Internet data center, until it found it could purchase an alternative already up and running elsewhere.  Meanwhile, much of the rest of Wyoming has no Internet, slow speed wireless or DSL, or limited cable broadband in some larger communities.

Even Gilliam admitted her home broadband account was nothing like the service Allstate Insurance was likely getting.

“It feels like it’s moving in slow motion,” she told the Times. “A lot of times I’ll start downloads and not complete them.” She said she was happy as long as she could get e-mail.

But not everyone is satisfied with an Internet experience limited to occasional web browsing and e-mail.

Qwest (now CenturyLink), is Idaho's largest Internet Service Provider.

“With countries like Latvia getting better broadband than we have, it’s only a matter of time before we start to lose even more jobs in the digital economy over this,” Jeff says. “This is one more nail in the coffin for rural economies in the west, which are being asked to compete with bigger cities and eastern states that have much better infrastructure.”

Pando found the northeast and mid-Atlantic states, excepting Maine, New Hampshire, and Vermont, have the best broadband speeds in the country.  The mountain west has the worst.

Rural states like Montana, the Dakotas, eastern Oregon, Idaho, Wyoming, and Utah are the least likely to have widespread access to cable broadband, which can typically offer several times the Internet speed found in smaller communities with DSL service from dominant provider Qwest (now CenturyLink).  CenturyLink claims 92 percent of their customers have some access to broadband, but didn’t say at what speeds or how many customers actually subscribe to the service.

In Idaho, cost remains a factor, so CenturyLink is planning to sell low-income households a discounted DSL package.  Speeds and pricing were not disclosed.

Jeff says the real issue is one of value.

“Some in the Times article blame lack of access, while others claim it’s all about the cost, but it’s really more a question of ‘is it worth paying this much for the service we actually get’,” Jeff says.

“Cable ONE is simply deal-with-it Internet, with usage caps and contract traps that leave customers feeling burned, but their only other choice is Qwest, and they show few signs of caring about delivering fast broadband in this state,” Jeff says.

“I believe CenturyLink Idaho’s vice president and general manager Jim Schmit when he says, ‘We’re in business to make a profit,’ Jeff concludes. “There isn’t a lot of profit in selling Internet service in rural mountain states, so the company simply doesn’t offer it where they won’t make back their investment quickly.”

“The question is, should profit be the only thing driving broadband deployment in the United States?  If you answer ‘yes,’ Idaho is the result.  If you answer ‘no,’ and think it is an essential utility, profit shouldn’t be the only consideration.”

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Cable ONE Countdown High Speed Internet.flv[/flv]

Cable ONE’s ad for 50Mbps leaves out a lot, including the 50GB usage cap and two-year contracts that downgrade service to just 5Mbps for the entire second year.  (1 minute)

Shamrock, Okla.: Bankrupt City, Abandoned Police Cars, Padlocked Doors, But Internet Service Prevails

Shamrock Museum

The city of Shamrock, Okla. may not be a city for much longer, facing unincorporation and liquidation of its remaining assets, which include the abandoned police cars that used to earn the city enough ticket revenue to keep the doors open.  But fast (and free at the local community center) Internet prevails (with competition, too) in a city with fewer than 100 remaining citizens.  It’s all thanks to a federal broadband grant and an existing Wireless ISP.

Shamrock’s unlucky predicament comes at the expense of the boom-and-bust oil business that launched dozens of small towns in rural Oklahoma, only to leave them largely abandoned when the oil dried up, or the cost to access it becomes too prohibitive.  Once a community numbering 10,000, Shamrock, located nearly halfway between Oklahoma City and Tulsa, had recently been surviving on revenue earned from writing traffic tickets in infamous speed traps set up along Highway 16.  Shamrock, along with Big Cabin, Caney, Moffett, and Stringtown, became so notorious for their dependence on traffic ticket revenue to keep the towns afloat, at one point the state government publicly designated them “speed trap towns” and banned them from writing tickets on state and federal highways. When Creek County officials learned the city was using non-commissioned officers to write tickets, they shut down the whole operation.

Soon after, residents found the city hall padlocked, with coffee cups still on the desks and police evidence lockers still stuffed with property from active criminal cases (although seized marijuana and beer has since disappeared.)

In fact, the only service now in operation at the city hall, now converted into a “community center,” is Internet access on 10 computers made possible by @Link Services LLC, an Oklahoma City-based Wireless Internet Service Provider (WISP) that provides service in rural areas, with the help of a broadband grant from the U.S. Dept. of Agriculture.

The broadband grant, amounting to $536,000, with matching funds of $134,000 kicked in by @Link, covers the costs of running the community center for two years and extending wireless access with the construction of a new wireless radio tower in Stillwater, which allows the company to reach Shamrock residents.

In addition to providing free access at the former city hall, @Link also sells Internet access to area residents (the only remaining business in town is a diner):

@Home Standard  512 Kbps download  512 Kbps upload $34.95
@Home Advanced  1.5 Mbps  up to 1.5 Mbps $39.95
@Home Premium  3.0 Mbps  up to 1.5 Mbps $46.95
@Home Premium Plus  5.0 Mbps  up to 3.0 Mbps $59.95
@Home Max  6.0 Mbps  up to 6.0 Mbps $74.95

“This is going to be the last place anyone would provide Internet without government funding because there is no chance of turning a profit,” Kerry Conn, chief financial officer of @Link Services told The Oklahoman. “But if you don’t have Internet services, your town is going to die.”

@Link CEO Samual Curtis says their wireless Internet access sells itself.

“Broadband is a very easy sell where there is no broadband,” Curtis told the newspaper.

The only problem with that is Shamrock currently does receive service from another Wireless ISP — OnALot, a service of HDR Internet Services, Inc.  OnALot operates from 70 systems in more than 25 cities and communities across rural Oklahoma.  @Link’s arrival in town, with the assistance of a federal broadband grant, came as a surprise to some Shamrock residents who already had Internet service from OnALot.  Now those customers have two choices — both wireless — for Internet service.  OnALot, the incumbent, is often cheaper, too:

PLAN 12 Month
Contract
Credit or
Debit Card
Monthly Fee For Service
A No Contract No $42.00
B No Contract Yes $37.00
D Yes Yes $33.00

OnALot does not sell traditional speed tiers.  Instead customers share access points rated at speeds of 11 and 54Mbps.  Customers do not actually see anything close to those speeds, because they are theoretical maximums and each access point is shared by several users.  But since many residential customers do not have a firm understanding of what different speed levels represent, it has proven workable for HDR Internet to sell services based on price, not speed.

OnALot does sell dedicated, private wireless circuits to customers who don’t want to share, but they are comparatively expensive:

Speed Equipment Monthly Fee
3.0 / 512 $400.00-$600.00 $200.00
6.0 / 768 $400.00-$600.00 $350.00

OnALot.com operates both standard Line-of-Sight and Near-Line-of-Sight systems on the 80' tall water tower on the west side of Shamrock.

One Oklahoman reader, Bobbi, wondered why @Link received federal grant money to provide Internet service in a community that already had access.

“Why this company didn’t do their homework before they used government money to provide a service to a town that had that service,” Bobbi asked. “Wouldn’t that be a misuse of the grant money?”

Broadband grant funding has come under criticism at times for funding projects that incumbent providers accuse of duplicating services.  A study funded by the National Cable & Telecommunications Association, the cable industry’s top lobbyist, found several instances of grants that would deliver broadband service to areas already served by other providers.

“While it may be too early for a comprehensive assessment of the [government]’s broadband programs, it is not too early to conclude that, at least in some cases, millions of dollars in grants and loans have been made in areas where a significant majority of households already have broadband coverage, and the costs per incremental home passed are therefore far higher than existing evidence suggests should be necessary,” the study says.

Thus far, much of the funding for rural Oklahoma seems to be directed towards wireless Internet access projects, which typically serve sparsely populated areas cable and phone companies have traditionally ignored.

The NCTA’s criticism, in particular, was directed against its would-be competitors.  The lobbying group suggests the price of competition was too high.

Based on the cost of the direct grants and subsidizing the loans, the NCTA study estimated that the cost per incremental home passed would be $30,104 if existing coverage by mobile broadband providers was ignored, and $349,234 if mobile broadband coverage was taken into account.

Wireless ISP operators have told Stop the Cap! many of their projects are self-financed and do not receive government assistance.  Some WISP operators have accused the government of making broadband grants to wireless operators a cumbersome, if not impossible prospect because incumbent telephone companies are often most likely to meet the government’s grant criteria.

For Shamrock residents, one piece of good news: @Link Services and OnALot both have no Internet Overcharging schemes like usage caps.  However, OnALot prohibits the use of peer-to-peer software (torrents) and @Link Services maintains the right to curtail speeds for those who create problems for other users on their shared wireless network.

OnALot’s usage policies are among the most frank (and common sense) we’ve seen, because they are up front with customers about the impact certain traffic can have on their wireless network:

  1. You are paying us to download from the Internet. We do not limit you on that. You can download anything you want 24/7. Games, email, web pages, radio stations, and so on – we don’t care, downloading is what you are paying us for. That said, we would prefer that you do not leave an active game un-attended, or run a radio station continuously, as these eat up bandwidth that others could be using. When you’re done with your game, please turn it off.
  2. We do have restrictions when it comes to uploading TO the Internet. P2P or Peer-to-Peer programs are NOT allowed. These limitations apply primarily to file sharing programs. We do NOT allow music or video sharing programs, bit torrent programs or other programs where outside users can extract files from your computer with or without your express consent. And seriously, do you actually WANT others to have full access to your computer? That’s what you’re giving to file sharing programs! Please call us if you are unsure if the program you are using is a file sharing program.
  3. Yes, you can upload to your favorite website, send big emails, and transfer any size files that are under your control. That’s OK with us – these are intermittent in nature and under your full control. It’s the unattended uploading that sharing programs do that we do not allow.
  4. If your computer has a virus and is “spewing” out onto the Internet, we expect you to have it cleaned. Causing others to become infected is wrong, and we may take steps to disable your Internet connection. We will call you first, explain what is going on and ask that you have your machine cleaned. If you decide not to do this, we will then cut you off until you do.

Astroturf and Industry-Backed, Dollar-a-Holler Friends Support Telco’s USF Reform Plan

So who is for the ABC Plan?  Primarily phone companies, their business partners, and dollar-a-holler astroturf friends:

American Consumer InstituteSourceWatch called them a telecom industry-backed astroturf group.  Karl Bode from Broadband Reports discovered “the institute’s website is registered to ‘Stephen Pociask, a telecom consultant and former chief economist for Bell Atlantic [today Verizon].”  The group, claiming to focus “on economic policy issues that affect society as a whole,” spends an inordinate amount of its time on telecommunications hot button issues, especially AT&T and Verizon’s favorites: cable franchise reform and opposition to Net Neutrality.

Anna Marie Kovacs:  Determining what is good for Wall Street is her business, as founder and President of Regulatory Source Associates, LLC. RSA provides investment professionals with analysis of federal and state regulation of the telecom and cable industries.

Dollar-a-holler support?

Consumer Awareness Project: A relatively new entrant, CAP is AT&T’s new darling — a vocal advocate for AT&T’s merger with T-Mobile.  But further digging revealed more: the “group” is actually a project of Washington, D.C. lobbying firm Consumer Policy Solutions, which includes legislative and regulatory advocacy work and implementation of grassroots mobilization.

That is the very definition of interest group-“astroturf.”

Randolph May from the Free State Foundation supports "state's rights," but many of them want no part of a plan his group supports.

Free State Foundation: A misnamed conservative, “states rights” group.  Leader Randolph May loves the ABC Plan, despite the fact several individual states are asking the FCC not to impose it on them.

Hispanic Technology & Telecommunications Partnership:  Whatever Verizon and AT&T want, HTTP is also for.  The group was embroiled in controversy over its unflinching opposition to Net Neutrality and love for the merger of AT&T and T-Mobile.  Its member groups, including MANA and LULAC, are frequent participants in AT&T’s dollar-a-holler lobbying endeavors.

Robert J. Shapiro: Wrote an article for Huffington Post calling the ABC Plan worth consideration.  Also worth mentioning is the fact he is now chairman of what he calls an “economic advisory firm,” which the rest of the world calls a run-of-the-mill D.C. lobbyist firm — Sonecon.  It comes as no surprise AT&T is a client.  In his spare time, Shapiro also writes reports advocating Internet Overcharging consumers for their broadband service.

Indiana Exchange Carrier Association: A lobbying group representing rural Indiana telephone companies, primarily owned by TDS Telecom.  It’s hardly a surprise the companies most likely to benefit from the ABC Plan would be on board with their support.

Indiana Telecommunications Association: A group of 40 telephone companies serving the state of Indiana.  For the aforementioned reasons, it’s no surprise ITA supports the ABC Plan.

Information Technology and Innovation Foundation:  Reuters notes this group received financial support from telecommunications companies, so lining up behind a plan those companies favor comes as little surprise.  ITIF also believes usage caps can deter piracy, so they’re willing to extend themselves way out in order to sell the telecom industry’s agenda.

Internet Innovation Alliance:  Another group backed by AT&T, IIA also funds Nemertes Research, the group that regularly predicts Internet brownouts and data tsunamis, which also hands out awards to… AT&T and Verizon.

The Indiana Exchange Carrier Assn. represents the phone companies that will directly benefit from the adoption of the ABC Plan.

Bret Swanson:  He penned a brief note of support on his personal blog.  When not writing that, Swanson’s past work included time at the Discovery Institute, a “research group” that delivers paid, “credentialed” reports to telecommunications company clients who waive them before Congress to support their positions.  Swanson is a “Visiting Fellow” at Arts+Labs/Digital Society, which counted as its “partners” AT&T and Verizon.

Minority Media & Telecom Council: Tries to go out of its way to deny being affiliated or “on the take” of telecom companies, but did have to admit in a blog posting it takes money from big telecom companies for “conference sponsorships.”  Some group members appear frequently at industry panel discussions, and mostly advocate AT&T’s various positions, including strong opposition to reclassify broadband as a utility service.

MMTC convened a Broadband and Social Justice Summit earlier this year that featured a range of speakers bashing Net Neutrality, and the group’s biggest highlighted media advisory on its website as of this date is its support for the merger of AT&T and T-Mobile.  Yet group president David Honig claims he can’t understand why some consumer groups would suspect groups like his of engaging in dollar-a-holler advocacy, telling The Hill, “We’ve seen no examples of reputable organizations that do things because of financial contributions. It’s wrong to suggest such things.”

Mobile Future: Sponsored by AT&T, Mobile Future curiously also includes some of AT&T’s best friends, including the Asian Business Association, LULAC, MANA, the National Black Chamber of Commerce, and the United States Hispanic Chamber of Commerce.

Montana Independent Telecommunications Systems: Primarily a group for Montana’s independent telephone companies, who will benefit enormously from the ABC Plan.

What major corporate entity does not belong to this enormous advocacy group?

The National Grange:  A group with a long history advocating for the interests of telephone companies.  Over the years, the National Grange has thrown its view in on Verizon vs. the RIAA, a request for Congress to support industry friendly legislation, a merger between Verizon and NorthPoint Communications, and USF issues.

The Keep USF Fair Coalition was formed in April 2004. Current members include Alliance for Public Technology, Alliance For Retired Americans, American Association Of People With Disabilities, American Corn Growers Association, American Council of the Blind, California Alliance of Retired Americans, Consumer Action, Deafness Research Foundation, Gray Panthers, Latino Issues Forum, League Of United Latin American Citizens, Maryland Consumer Rights Coalition, National Association Of The Deaf, National Consumers League, National Grange, National Hispanic Council on Aging, National Native American Chamber of Commerce, The Seniors Coalition, Utility Consumer Action Network, Virginia Citizen’s Consumer Council and World Institute On Disability. DSL Prime helps explain the membership roster.

Taxpayers Protection Alliance:  One of the tea party groups, TPA opposes higher USF fees on consumers.  The ABC Plan website had to tread carefully linking to this single article favorable to their position.  Somehow, we think it’s unlikely the group will link to the TPA’s louder voice demanding an end to broadband stimulus funding many ABC Plan backers crave.

TechAmerica: Guess who is a member?  AT&T, of course.  So is Verizon.  And CenturyLink.  TechAmerica call themselves “the industry’s largest advocacy organization and is dedicated to helping members’ top and bottom lines.”  (Consumers not included.)

Tennessee Telecommunications Association: TTA’s independent phone company members stand to gain plenty if the ABC Plan is enacted, so they are happy to lend their support.

Rep. Terry's two biggest contributors are CenturyLink and Qwest.

Representative Greg Walden (R-Oregon):  His top five contributors are all telecommunications companies, including CenturyLink, Pine Telephone, and Qwest.  He also gets money from AT&T and Verizon.  It’s no surprise he’s a supporter: “We are encouraged by the growing consensus among stakeholders as developed in the ‘America’s Broadband Connectivity Plan’ filed with the Federal Communications Commission today, and we hope that consensus will continue to grow.”

Representative Lee Terry (R-Nebraska): He co-signed Rep. Walden’s statement.  Rep. Terry’s two biggest contributors are Qwest and CenturyLink.  Now that CenturyLink owns Qwest, it’s two-campaign-contributions-in-one.  And yes, he gets a check from AT&T, too.

Representative Steve Scalise (R-Louisiana): “Today’s filing of the ‘America’s Broadband Connectivity Plan’ is welcomed input on the intercarrier compensation and Universal Service Fund reform front,” Scalise said.  Now Scalise is ready to welcome this year’s campaign contribution from AT&T, which he has not yet reportedly received.  In 2008, Scalise received $13,250.  In 2010, $10,000.  This cycle, so far he has only been able to count on Verizon, which threw $2,500 his way.  Scalise voted earlier this year to overturn the FCC’s authority to enact Net Neutrality.

USTelecom Association: The only news here would be if USTA opposed the ABC Plan.  Included on USTA’s board of directors are company officials from: Frontier Communications, AT&T, CenturyLink/Qwest, Windstream, FairPoint Communications, and Verizon.  That’s everyone.

Wisconsin State Telecommunications Association:  Their active members, including Frontier Communications, are all telephone companies inside Wisconsin that will directly benefit if the ABC Plan is enacted.

Public-Private Failure: How Mediacom Killed Marshalltown’s Free Community Wi-Fi

Five years ago, municipal Wi-Fi projects were enjoying a small boom.  The concept of providing low-cost or free Internet access seemed like a winner because it could provide service to those who could not afford traditional broadband, would stimulate economic development downtown, and possibly attract business as shoppers stopped in cafes or stores to use their wireless devices.  In some communities, just the spectacle of a city-wide high technology wireless network delivered worthwhile bragging rights that adjacent communities didn’t have.

For most city or town officials pondering investment in a Wi-Fi network, the idea germinates from a perceived lack of service from private providers.  If private companies were delivering the service, few communities would spend the time, effort, and money duplicating it.

In the community of Marshalltown, public Wi-Fi in 2005 was a service only found in a small selection of stores and cafes in the central business district.  The Marshalltown Economic Development Impact Committee sought to change that, promoting a plan to construct a free-to-use Wi-Fi network covering a 20-block radius centered on the Marshall County Courthouse.  The community of 27,000 got a three month trial of the downtown Wi-Fi network in 1995, with the city and county sharing 50 percent of its cost, with the remaining 50 percent paid for by private donations.

Mediacom, the cable company serving Marshalltown, was incensed by the notion of a community-owned broadband provider delivering improved (and free) Internet access across the city.  Even worse in their eyes, local government officials were pondering creating a public broadband utility.

Marshalltown (Marshall County), Iowa

It wasn’t long before new, shadowy groups with names like “Project Taxpayer Protection” showed up in town attacking the concept of municipal Internet access.  After a blizzard of brochures and exaggerated claims about “government broadband,” the network became a point of controversy among the locals.

Only later would the community learn the group (whose status as a non-profit was later revoked by the Internet Revenue Service for failure to file timely reports on its funding and activities) was actually funded mostly by Mediacom itself, with the full support of the Iowa Cable Association.

The astroturf campaign against public involvement in Wi-Fi, which could threaten Mediacom’s broadband service profits, was effectively an investment against competition.  It was an effort that paid dividends by late 2005, when the city and Mediacom suddenly announced a new “public-private partnership” to administer and expand the Wi-Fi network.  There were a few important changes, however:

  1. Mediacom’s concept of “free” was markedly different than the designers’ original vision.  The cable company had other ideas, placing restrictions on how much “free use” was allowed;
  2. Customers who used the newly-announced “free service” got it at speeds not much better than dial-up and definitely slower than 3G;
  3. Residential Mediacom broadband customers could get unlimited time on the formerly-free network, if they paid $19.95 a month for 256kbps access;
  4. To make the network seem business-friendly, business customers were told they could get up to 10Mbps service for $59.95 a month.

The goal of the partnership, according to Mike Miller, chairman of the Marshalltown Economic Development Impact Committee, was to see low-cost broadband Internet access citywide by the end of 2006.

Oh, and Mediacom insisted on something else: no more talk of a city-created municipal telecommunications provider, at least for a year anyway.

“We commend you on the foresight and vision to do this,” Bill Peard, Mediacom’s government affairs manager, told city officials at the time the deal was announced.

Friends until the community-owned...

Once Mediacom got its hands on the formerly community-owned network, it was the beginning of the end.

Business customers could not get Mediacom to sell them access at the promised price because representatives could not find the offer.

It was much worse for residential users.

Free Wi-Fi access soon became limited to one hour a day, up to 10 hours per month for non-Mediacom customers.  After that, you paid if you wanted more.

City and company officials spent most of their time wrangling over the costs of the service and its future potential.  What city officials were not planning for was the network’s virtual demise at the hands of the cable company.

...free Wi-Fi network is at an end.

Today, free access is a distant memory, as Mediacom pulled the plug claiming there was “limited interest.”

Effectively, Mediacom’s idea of a public-private partnership was the systematic decommissioning of a community’s public Internet alternative, all to protect its own broadband business.

That’s a lesson of caution for any community seeking to team up with private broadband providers.  Marshalltown allowed that partnership to first and foremost serve Mediacom’s business interests, not the public.  Now that network is effectively gone and largely-forgotten.

That suits Mediacom just fine.

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