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65% of Counties in U.S. Have Real World Wireless Speeds Below FCC’s Broadband Minimum

Phillip Dampier March 3, 2020 Broadband Speed, Public Policy & Gov't, Rural Broadband, Wireless Broadband Comments Off on 65% of Counties in U.S. Have Real World Wireless Speeds Below FCC’s Broadband Minimum

Nearly two-thirds of counties in the United States have real world wireless download speeds below the Federal Communications Commission’s minimum to be considered broadband — 25 Mbps. In rural counties, the number is even higher: 77% cannot get reliable speed at or above 25 Mbps.

That is the finding of a new report, “Understanding the True State of Connectivity in America,” produced by the National Association of Counties (NAC), and a handful of other rural-focused advocacy groups.

Unlike the Federal Communications Commission, which relies on providers voluntarily supplying the broadband speeds they claim to offer customers, NAC developed TestIT, an app allowing the public to test actual wireless broadband speeds and report back results. Since March 2019, users have conducted over 100,000 speed tests from 2,391 U.S. counties (representing 78% of all counties nationwide).

The results found widespread differences between the speeds advertised to customers and those experienced by them. Among fixed wireless broadband networks, almost 60% of counties lacked providers that consistently supplied service with speeds at or above 25 Mbps. Wireless speed was inconsistent everywhere, but particularly in rural areas, where 74% of rural counties had slow speed service.

“The TestIT app results show a disparity of broadband access across America,” said NAC executive director Matthew Chase. “Armed with this data, we will advocate for adequate funding for broadband infrastructure and better inform federal, state and local decision-making to help level the playing field.”

The app also identified a much larger section of rural America where there was no service at all, despite claims of coverage from wireless providers on coverage maps. The organization believes this disparity may be coming from taking providers at their word instead of independently verifying actual coverage is available.

“Accurate connectivity data is the foundation for investments in our nation’s broadband infrastructure,” the report found. “Unfortunately, connectivity data provided to the FCC is often inaccurate and inflated — leaving many communities overlooked and disconnected.”

WOW! Lays Foundation to Ditch Selling Cable TV; Starts Offering Streaming Alternatives

Cable system overbuilder WideOpenWest, better known to customers as WOW!, has begun offering its customers subscriptions to streaming video competitors fuboTV, Philo, Sling, and YouTube TV, in what could be a gradual move away from selling its own video packages.

WOW!, like every cable operator, is losing cable television customers to cord-cutting. As of the end of 2019, the company had just 381,000 video subscribers remaining, down another 6,300 in the last three months. Because of its small size, WOW! does not qualify for the steep volume discounts offered to cable television and satellite TV companies that have tens of millions of video customers. As a result, it either has to continue to raise prices or watch its cable television packages become unprofitable. WOW! has apparently decided it is smarter to partner with nationwide video streaming providers, if only to keep its broadband and television customers from switching to a competitor.

“WOW! has always put a high value on offering choices to consumers,” said WOW! CEO Teresa Elder. “This is one more way we’re empowering customers to determine when, where and how they consume information and entertainment. Our robust broadband network is the natural choice for high-speed data customers […] who want to access streaming services on their terms.”

WOW! specializes in providing service in communities already served by another cable operator. Many of its systems are in the Midwest, where it competes with Charter Spectrum, Cox, or Comcast.

WOW! will offer customers one free Amazon Fire TV Stick and a $25 rebate that can be used to buy other set-top boxes that will support streaming TV alternatives.

If successful, it may not be too long before WOW! stops selling cable television altogether, to focus on its broadband business.

New York Governor’s Boast About Near-100% Broadband Coverage Backfires

Phillip Dampier February 18, 2020 Broadband "Shortage", Broadband Speed, Community Networks, Editorial & Site News, Public Policy & Gov't, Rural Broadband Comments Off on New York Governor’s Boast About Near-100% Broadband Coverage Backfires

Gov. Andrew Cuomo announcing rural broadband initiatives in New York.

When New York Gov. Andrew Cuomo boasted in 2015 that anyone who wanted broadband service in the state would have access to it, he could not have realized that claim would come back to haunt him five years later.

New York’s Broadband for All program claimed to be the “largest and most ambitious state broadband investment in the nation,” with $500 million set aside “to achieve statewide broadband access by 2018,” with “99.9% of New Yorkers” getting access to broadband service.

In 2020, that goal remains elusive, with over 80,000 New Yorkers relegated to heavily data-capped satellite internet access and potentially tens of thousands more left behind by erroneous broadband availability maps that could leave many with no access at all. Now it appears the federal government will not be coming to the rescue, potentially stranding some rural residents as a permanent, unconnected underclass.

The Republican-majority at the Federal Communications Commission has decided to take the Democratic governor at his word and exclude additional rural broadband funding for New York State. The FCC’s recently approved Rural Digital Opportunity Fund (RDOF) is the most ambitious rural broadband funding initiative to date, with a budget of $20.4 billion. As it stands, not a penny of those funds will ever be paid to support additional broadband projects in the Empire State.

“Back in 2016, the governor of New York represented to this agency that allocating the full $170 million in Connect America Fund II support to the state broadband program would allow full broadband buildout throughout the Empire State, when combined with the state’s own funding,” said FCC Commissioner Michael O’Rielly.

That $170 million was originally designated for Verizon to spend in upstate and western New York in areas without high-speed broadband. When Verizon declined to accept the funding, the rules for the program required the money to be made available for other qualified projects in other states, or left forfeit, unspent. An appeal from New York’s Senate delegation to FCC Chairman Ajit Pai to award that $170 million to New York’s Broadband for All program was successful, allowing other phone, cable, and wireless providers to construct new rural broadband projects around the state. That decision was met with criticism, especially by the Wireless Industry Service Providers Association (WISPA), which represents the interests of mostly rural, fixed wireless providers around the country.

O’Rielly

“After robust opportunity for public input, last year the FCC adopted a CAF-II framework that was truly technology-neutral and designed to harness the power of competition to deliver the most broadband to the most Americans, at the lowest overall price,” said Steve Coran, counsel for WISPA, in a statement. “Unfortunately, today’s action appears to deviate from this approach by providing disproportionate support to one state at the expense of others, which will now be competing for even less federal support.”

That criticism was partially echoed by Commissioner O’Rielly, who appreciated the dilemma of rural New Yorkers without access to high speed internet, but felt the FCC was showing favoritism to New York, which he worried was getting a disproportionate share of federal funding.

“These are federal [Universal Service Fund] dollars taken from ratepayers nationwide. They are not New York State funds, and we have the burden of deciding how best to allocate these scarce dollars, as well as the right to demand that they be spent wisely,” O’Rielly said. “At the same time, I am concerned that the funding will not be used as efficiently as possible. It should not be lost on everyone that New York is one of the states that diverts 9-1-1 fees collected to other non-related purposes, as is noted in the Commission’s recent report on the subject. We should have received assurances that New York would cease this disgraceful practice.”

O’Rielly added that offering even more generous funding in New York could lead to overpaying providers to service rural New York communities at the expense of other, cheaper rural broadband projects in other states.

Recently O’Rielly claimed that allowing New York to receive funding under the new RDOF program would almost guarantee dollars would be spent on duplicative, overlapping broadband projects, noting that Gov. Cuomo already considers New York almost entirely served by high speed providers. In fact, he claimed any additional funding sent to New York would be “beyond foolish and incredibly wasteful” and would undermine the rural broadband program’s objective to avoid funding projects in areas already served by an existing provider.

In other words, since Gov. Cuomo has claimed that virtually the entire state is now served with high speed internet access, O’Reilly believes there is no reason to award any further money to the state.

Except the claim that ‘nearly the entire state already has broadband access’ is untrue, and O’Rielly’s arguments against sending any additional money to New York seem more political than rational.

The FCC’s broadband availability map shows significant portions of New York in yellow, which designates no provider delivering the FCC’s minimum of 25/3 Mbps broadband service.

First, the FCC’s own flawed broadband availability maps, criticized for over counting the number of Americans with access to broadband, still shows large sections of upstate and western New York unserved by any suitable provider. Parts of western New York between Buffalo and Rochester, significant portions of the Finger Lakes, Southern Tier, and North Country are all still without access. An even larger portion of upstate New York has either no access or very slow access through DSL. The number of residents without service is significant. The FCC uses census blocks to measure broadband availability, but this methodology is flawed because if even one home within that block has broadband while dozens of others do not, the FCC still counts every home as served. This has angered many New Yorkers stuck without service while a local cable or phone company offers high-speed internet access to neighbors just up the road. Many of these rural residents are not even designated to receive satellite service, Broadband for All’s last catchall option for areas where no wired provider bid to provide service.

Second, long-standing rules in broadband funding programs already deny funding to areas where another suitable provider already offers service. So it would be impossible for RDOF to award “wasted” funding to projects where service already exists.

While Gov. Cuomo’s boastful claims about broadband availability opened the door for discriminatory rules against the state, the FCC itself wrote the rules, and it appears the goal was one part payback for securing earlier broadband funding over the objections of Commission O’Reilly, and one part sticking it to a state that has given the Trump Administration plenty of heartburn since the president took office.

Special Report: Multiple States Dealing With Dangerous Outages at Frontier Communications

Phillip Dampier February 11, 2020 Consumer News, Frontier, Public Policy & Gov't, Rural Broadband Comments Off on Special Report: Multiple States Dealing With Dangerous Outages at Frontier Communications

Frontier’s office in Charleston, W.V.

Conditions within many Frontier Communications service areas are in a state of dangerous disrepair, with a growing number of disruptions to 911 services and a long wait for urgent repairs of Frontier’s deteriorating landline network that can now take over a month.

A growing number of states are documenting unprecedented service problems at Frontier Communications, the independent phone company providing phone and internet services to homes and businesses in 29 states. News reports predict that the company will be in bankruptcy court as early as March, hoping to discharge or refinance its staggering debts. But until then, some Frontier customers have been unable to reach 911 or rely on their rural landline service for remote medical monitoring, potentially putting their lives at risk.

One of the latest states to report serious deficiencies with Frontier’s service is Wisconsin. At a Dec. 20 public meeting in Mondovi to discuss the quality of service at Frontier, the city administrator heard harrowing tales of rural Wisconsin residents who frantically tried to call 911 and got nothing but a strange busy signal.

The Wisconsin State Journal reported that after Mike Wright’s shed collapsed on him under the weight of multiple feet of snow, his wife’s attempts to reach 911 from their Mondovi home failed again and again. A Frontier technician later admitted 911 was out of service for about eight hours that day. Frontier apparently did not notify customers or the media about the outage.

James Rud, a volunteer firefighter and the town’s street superintendent, told the meeting that was not an unusual situation. A few years earlier, a local dentist’s office repeatedly tried to reach 911 after a disabled girl choked on a piece of dental equipment. There was no answer.

“Everybody’s frantic because they’ve called five times and got a busy signal on 911,” Rud told the meeting, noting that when people call 911 and “nobody picks up, your anxiety level goes from a bad situation to a (really) bad situation.”

That day, 911 operators were waiting to take emergency calls. The calls failed to connect because of network problems at Frontier. Based on a review of state regulator complaints, the problems are growing in size and scope across multiple states served by Frontier. In Wisconsin alone, at least 93 serious complaints were filed with the state’s telecom regulator. The Department of Agriculture, Trade, and Consumer Protection received 405 pages of complaints between January 2019 through January 2020, mostly about poor quality phone and internet service in rural Wisconsin and very long wait times for often ineffective repairs. One complaint from Barneveld even included a physician’s letter emphasizing the urgent need for reliable landline service for a patient in poor medical condition.

There are indications Frontier satisfactorily handled some complaints… eventually, but many customers had to take extraordinary action to get the phone company’s attention about problems the company allegedly ignored for months.

One complainant turned out to be Marathon County IT director Gerald Klein, responsible for maintaining the county’s 911 system. He couldn’t get Frontier to respond to him either, eventually reaching out to Wisconsin state officials as a last resort. Klein complained Frontier was unresponsive “for months” to his county’s request to upgrade a crucial trunk line necessary to activate a new and improved 911 system. He had no idea who to appeal to next.

“Our 911 system is maintained by Frontier but the equipment is long since past end‐of‐life,” Klein wrote in a letter to the Wisconsin Public Service Commission on Dec. 27. “Can I file a complaint with the Wisconsin PSC or can you give me other advice on how to get Frontier’s attention? Is this something that should be given to the FCC?”

Lane

In West Virginia, perhaps the epicenter of Frontier’s epic problems, Public Service Commission chairperson Charlotte Lane, a former Kanawha County delegate, considers Frontier’s performance in her state to be unacceptable.

“Frontier has over 300,000 customers in our state,” Lane said, noting that for many West Virginians Frontier is their sole provider. “In 2019, we received nearly 2,000 complaints from Frontier customers about the company’s phone and internet service. We spend a lot of time responding to these complaints.”

Other media reports count the number of complaints regarding Frontier exceeding 4,000 “over the last couple of years.”

Lane is especially worried about the growing number of 911 outage incidents reported across West Virginia. There were at least a half-dozen high profile outages in 2019 that attracted media attention and scrutiny from local, county, and state legislators.

In July 2019, the PSC commissioned Schumaker and Company to perform an extensive management audit of Frontier Communications. Lane said the audit was critical because Frontier’s performance has been questionable since the company acquired Verizon Communications-owned landlines in the state back in 2010. Lane said Frontier has been cutting staff and maintenance workers in the state, but wanted a definitive report on the company so the PSC can intelligently oversee Frontier’s performance. That report is due to be released on March 19.

West Virginia “has a lot of power and we will exercise it,” Lane said.

The same may not be true in Wisconsin, where a well-funded deregulation campaign by AT&T and other phone companies in Wisconsin won bipartisan favor in 2011, with the full endorsement of then Gov. Scott Walker. One Republican state senator even promised that the new law would result in more than 50,000 new jobs and inspire telecom companies to invest in the state. In fact, AT&T, Frontier, and other phone companies have cut jobs over the last nine years and Frontier has invested little in upgrading its Wisconsin network to more reliable fiber optic technology. Telecom companies also claim deregulation frees them from having to deliver traditional copper-based landline service where most people are now using cell phones, and consumers can always exercise their choice by switching from a disappointing phone company to the local cable operator.

But rural residents in Wisconsin complain they often do not have the option of switching to cell phone or cable service, because there is no reliable cell coverage or local cable operator in many of the areas Frontier services. That has left them vulnerable to the consequences of ending universal landline service and a telecom industry that is investing in upgrades almost exclusively in urban areas.

Even Frontier officials now admit serving rural areas is becoming an unsustainable proposition for the phone company.

A statement from Frontier’s Javier Mendoza.

“Frontier serves only about ten percent of the state voice lines in its service area—and falling—but has 100 percent of the universal service obligation to serve the most rural and high-cost areas,” Frontier spokesperson Javier Mendoza said in a statement about its business in West Virginia in July 2019. “Our customer base continues to decline, while the cost of service per line has increased dramatically. This has resulted in an unsustainable model for providing service in rural and high-cost areas, manifesting in increased numbers of service complaints. We plan to reach out to the state’s leaders to collaboratively find solutions to this difficult challenge.”

West Virginia’s Public Service Commission is undertaking a comprehensive audit of Frontier Communications.

Deregulation in states like Wisconsin has allowed Frontier to escape some of the harsher consequences from regulators held responsible for ensuring customers have reliable access to basic phone service. That leaves many rural customers vulnerable to whatever goodwill exists at private telecommunications companies to continue offering service.

Observers suggest Chapter 11 bankruptcy will allow Frontier to shed its punishing level of debt many believe is responsible for Frontier’s ongoing lack of investment in network upgrades. But others believe Frontier is more likely to seek a sale of its rural service areas to focus on its more profitable urban service areas, especially in California, Texas, and Florida. Frontier has already announced a sale of its landline network in the Pacific Northwest to a regional telecommunications company promising to scrap much of Frontier’s copper wire infrastructure in favor of fiber optics.

In the meantime, problems at Frontier’s operations are ongoing. Last week, a “massive phone outage” in Cabell County, W.V. took down phone service across large parts of the county.

Earlier this month, Frontier officials were called to a meeting to address complaints about poor service in Tennessee. In attendance were Cumberland County Mayor Allen Foster, Crossville City Mayor James Mayberry, Senator Paul Bailey and U.S. Representative John Rose. The complaints were called “severe” by the public officials and dangerous to public safety.

“Frontier officials appeared to have no definitive answer to the complaints,” reported 3B Media.

Plumas County, Calif. officials are alarmed about reports of Frontier’s possible bankruptcy. District 2 Supervisor Kevin Goss said he is a Frontier customer that has experienced firsthand the issues he says all Indian Valley residents experience: paying for high speeds and experiencing low speeds in return. Goss said Frontier’s broadband service often works only intermittently for a few hours at a time. Incoming residents often cannot subscribe to broadband service at all, after Frontier allegedly placed a moratorium on adding new DSL customers in the area in 2018. Koss claims he has seen no evidence Frontier plans to invest in service expansion and the DSL moratorium remains in place two years later.

In Minnesota, the state’s Public Utility Commission recently reached a settlement with Frontier over its poor quality landline and broadband service, particularly in rural areas. But now the Minnesota Department of Commerce is launching a new investigation focusing on Frontier’s billing and customer service practices.

“We are concerned about Frontier’s practices when customers are signing up for service and the prospect that Minnesotans are being overcharged for their phone service,” said Commerce Commissioner Steve Kelley.

A broken Frontier telephone pole. (Left) Frontier phone cables left stretched against a tree (Right) Images: PUCO

The Minnesota Department of Commerce has just launched another investigation into Frontier Communications, focusing on the company’s billing and customer service practices. The primary issues under investigation include whether Frontier failed to inform customers of their service options and whether Frontier enrolled customers in long distance service plans that customers did not want or use.

“We are concerned about Frontier’s practices when customers are signing up for service and the prospect that Minnesotans are being overcharged for their phone service,” said Commerce Commissioner Steve Kelley.

In Ohio, state regulators are tangling with Frontier over network and infrastructure upkeep practices. The Ohio Department of Transportation (ODOT) is taking issue with Frontier’s attempts to ‘pass the buck’ on pole and infrastructure maintenance. Patricia Binkiewicz says her family is collateral damage in that battle, after her husband’s car was struck by a falling branch hanging over Route 43 in Carroll County — a branch Frontier should have dealt with over a year ago.

“If you drive, especially around here, you’re going to see these trees hanging over lines and they don’t realize no one is claiming responsibility, accountability, any liability or damages if a tree should fall down,” Binkiewicz said. Attempts to have Frontier Communications deal with overgrown trees and brush fell on deaf ears. The company claimed that was the responsibility of ODOT. No so fast, ODOT responds.

A Frontier installer draped a new line across this customer’s residential propane tank, and then left. (Image courtesy: Mark Steil, MPR News)

“Utilities that run in the state’s right of way are to be maintained by the utility company,” ODOT spokesperson Lauren Borell said. “So, what that means is if there’re trees there, the utility company is responsible for those trees.”

When the story made the local news, ODOT removed the offending tree, but there is no word how many other trees represent accidents waiting to happen. Local officials claim Frontier has shown a lack of interest in investment.

That lack of investment is also apparent in the state of Utah, where the Utah Public Service Commission is continuing its investigation into Frontier Communications as a result of complaints from Castle Valley and the nearby area that the company failed to provide reliable service to customers. Julie Price, a spokesperson for Utah’s Division of Public Utilities, said her agency is concerned about the “company’s level of investment in Utah.”

The consequences of deregulation of phone service in rural areas dependent on landlines may eventually include unnecessary deaths from an inability to reach emergency services due to a service outage or network problem. Observers note that cell phone service remains spotty, especially indoors, in large sections of rural America. Some wireless carriers like T-Mobile and Sprint barely provide any direct coverage in states like West Virginia, and AT&T and Verizon offer solid service primarily in larger cities.

It remains unlikely rural cell service will ever be ubiquitous in many rural areas, because there will not be enough customers to make such investments profitable. Instead, for over a century consumers have traditionally relied on universally available landline telephone service. But as deregulation efforts weaken or eliminate universal service requirements, local phone companies may eventually cease offering landline service. AT&T is already experimenting with eliminating legacy phone lines in favor of wireless service, with mixed results. An effort by Verizon to replace deteriorating rural landlines with a wireless landline replacement proved unpopular and unreliable.

What compelled local phone companies to provide universal, high quality landline service for decades was strong regulatory enforcement with stiff fines for non-compliance. Repairs were expected to be made in most cases within a day or two, not four to nine weeks. Public safety from overgrown trees and brush near telephone company-owned utility poles is also a growing and relatively recent problem. In some cases, deregulation has left regulators unable to police the condition of utility poles that present a safety risk, and that task has now fallen on local media that can embarrass a company into fixing problems.

Public policy advocates recommend Frontier be held accountable for the quality of their service and states should strongly consider rolling back deregulation, especially in rural areas.

Cable Companies See Big Growth in Broadband and Wireless, Big Losses in TV

Phillip Dampier January 27, 2020 Altice USA, Charter Spectrum, Comcast/Xfinity, Competition, Consumer News, Online Video Comments Off on Cable Companies See Big Growth in Broadband and Wireless, Big Losses in TV

Most analysts are predicting this past year will be the worst yet for video customer losses, with nearly two million cable TV customers cutting the cord in 2019, up from 1.26 million in 2018. Business is even worse for satellite TV operators, which lost 1.2 million customers in 2018 and are expected to have shed another 3.25 million customers in 2019 — mostly because of mass customer defections at AT&T’s DirecTV. Altogether, over five million Americans are estimated to have cut the cord over the past year.

Investors have largely stopped worrying about video subscriber losses, and cable operators have boldly told Wall Street they have stopped chasing video customers threatening to cancel service, claiming many are no longer profitable enough to keep. Their key competitors, online streaming video services like Sling TV, AT&T TV Now, and Hulu with Live TV are also seeing subscriber gains slowing, most likely because of price increases. One analyst predicted these online cable TV replacements would add a combined 804,000 customers in 2019, less than half of the 2.3 million they added in 2018.

Cable companies seem unfazed, in part because of record-breaking gains they are expected to have made in internet and wireless customers in the last year. One analyst suggests that most of those gains are coming directly at the expense of phone companies.

Comcast and Charter are the two largest cable companies in the United States.

“Cable’s clear speed advantage in roughly half the U.S. is driving continued strong share performance,” Jayant told clients in a research note. Jayant expects some of the biggest gains will come from ex-DSL customers in Comcast and Charter Spectrum’s service areas.

Nationwide, cable operators likely added 3.1 million new broadband customers in 2019, up 15% over last year. Phone companies are predicted to have lost at least 402,000 internet customers, up from 342,000 in 2018. Most of those departing customers are not served by fiber broadband.

Both Comcast and Charter Spectrum are also successfully attracting a growing number of mobile customers, as is Altice USA. Charter and Comcast offer their broadband customers the option of signing up for wireless mobile service, powered by Verizon Wireless. Altice USA resells Sprint service at cut-rate prices.

Comcast is estimated to have added 778,000 wireless customers in 2019 and analysts predict that the company will add another 909,000 in 2020. Charter Spectrum is expected to have gained 923,000 wireless customers in 2019, with another 1.04 million likely to sign up in 2020. Altice USA’s deal with Sprint in its Cablevision/Optimum service area has already attracted about 80,000 customers, with 550,000 more likely to follow in 2020.

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