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Frontier Customers’ Long Wait for Slow Broadband

Phillip Dampier March 29, 2012 Editorial & Site News, Frontier, Rural Broadband Comments Off on Frontier Customers’ Long Wait for Slow Broadband

Maybe this explains why Frontier’s customers in West Virginia and beyond are still waiting for the promised DSL service that actually delivers better than 1Mbps speed at peak usage times.  Who knew it had to be this complicated?

Want Better Canadian Broadband? Move West

If you want better Canadian broadband with fewer tricks and traps and live in Ontario or Quebec: put the house up for sale, pack up your things, and head west.

Canada’s heavily metered and capped broadband is ubiquitous in the country’s two most-populated provinces where a convenient duopoly of Bell and Rogers in Ontario and Bell and Videotron in Quebec control the vast majority of the broadband market.  But cross west into Saskatchewan and things start to look a lot better.

Canadians telecommunications consultancy The Seaboard Group praised SaskTel, the provincial phone company, for refusing to slap usage caps on its customers.  SaskTel does not deliver the cheapest Internet access by any means, but the company is investing heavily in fiber optic upgrades to turn the page on aging copper wire infrastructure.  Stringing fiber through Regina, Saskatoon and beyond may seem counterintuitive to other providers.  Saskatchewan, one of Canada’s “prairie provinces,” is hardly packed with people.  With more than 20 million Canadians living in Ontario and Quebec, Saskatchewan gives its 1 million residents a lot of open space.  Sparser populations usually translate into higher costs per customer for upgrades, but SaskTel persists.

SaskTel has historically relied on traditional DSL and has competition in larger communities from Shaw Cable, western Canada’s largest cable operator.  Although SaskTel’s DSL delivers lower speeds than Shaw can provide, it does so with no usage limits.

Shaw’s decision to provide considerably more generous usage allowances has kept the pressure on SaskTel to upgrade its infrastructure to compete.

SaskTel CEO Ron Styles told the Leader-Post its fiber optic network will give cable a run for its money, and until then, it is satisfied undercutting cable pricing for broadband, delivering a far better experience than either Rogers or Bell provides eastern Canadians, Styles says.

Seaboard president Iain Grant found that what customers are willing to pay for service can also influence what prices providers charge.

“The price is more based on what you’re prepared to pay,” Grant said.

People in western Canada evidently are not willing to hand over as much money as their friends in Ontario and Quebec.

West of Saskatchewan lies Alberta and British Columbia — Telus territory.  Telus is western Canada’s largest phone company and also principally competes with Shaw Cable.

Shaw has forced Telus to back down on fueling enhanced revenue with usage caps of its own, and has been aggressively upgrading its network with additional fiber optics and DOCSIS 3 technology, forcing Telus to embark on its own upgrade effort.

Macleans reports western Canada’s more-competitive broadband market has been good for consumers, but has also exposed a difference in priorities for providers.

With Shaw breathing down its neck, Telus has committed to a $3 billion fiber optic network expansion in B.C., improved wireless coverage, and more IPTV service.  Macleans notes Telus is the only major telecom or cable company in Canada that hasn’t purchased a television asset, focusing instead on its core businesses of connecting customers.

In eastern Canada, Bell faces Rogers and Videotron.  Critics contend Bell sees no imminent threats there, and the phone giant is spending its money elsewhere, announcing a $3.4 billion acquisition of Astral Media — an entertainment company owning 24 specialty cable channels and pay-TV networks, including the Movie Network and HBO Canada.

Bell’s latest “investment” follows its 2010 $1.3 billion buyout of CTV and last year’s $1.32 billion co-purchase of Maple Leafs Sports and Entertainment (the other buyer was their ‘arch-competitor’ Rogers Communications).

While Telus spends money on upgrading its broadband and video services to customers, Bell is positioning itself to control 34% of Canada’s TV universe.  Bell is also the same company that advocated slapping nationwide usage-based pricing on Canadian broadband consumers to pay for the “network upgrades” it contends were needed to handle increasing demand.

America’s Best Broadband Is Publicly Owned: See How It Transforms Chattanooga, Tenn.

Phillip Dampier March 28, 2012 Broadband Speed, Community Networks, Consumer News, EPB Fiber, Public Policy & Gov't, Video Comments Off on America’s Best Broadband Is Publicly Owned: See How It Transforms Chattanooga, Tenn.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Living in a Smart City Chattanooga TN.flv[/flv]

The only one Gigabit broadband service currently available in the United States for residential and business customers is in Chattanooga, Tennessee. Meet people who live and work in one of the smartest cities in the country: what services do they embrace today, what is their vision for the future, and what kind of culture do they think makes this all possible.  New jobs are moving into Chattanooga every day, and existing companies are learning to take advantage of the new business opportunities gigabit broadband delivers.  You may be surprised to learn America’s best Internet access comes from a publicly-owned utility that works hard every day for its customers, not investors and banks living a thousand miles away.  (6 minutes)

 

Samsung Negotiating for Higher Data Caps Bundled With New TV Purchases

Phillip Dampier March 28, 2012 Data Caps, Online Video, Wireless Broadband Comments Off on Samsung Negotiating for Higher Data Caps Bundled With New TV Purchases

Samsung has a problem selling Internet-enabled televisions in South Africa because of the pervasive impact of Internet Overcharging schemes like data caps and metered billing.  Now the company is taking its case directly to telecommunications providers, negotiating larger usage allowances for customers who buy new Samsung “Smart TVs.”

Samsung South Africa says streamed video-on-demand is impossible in the country with current data caps, often as low as 2GB per month, and even lower on wireless.

“If you download one movie on [wireless], your data is gone in one movie,” Matthew Thackrah, business leader of consumer electronics at Samsung South Africa told MyBroadband. “If you then go over your data cap and you download a few movies, you don’t know what bill you’re going to get – but it’s going to be expensive.”

Thackrah said the average high quality streamed movie consumes around 1.6GB, far too much for heavily-capped broadband in countries like South Africa.

Samsung is now approaching providers about bundling special, larger data allowances for customers buying their televisions.  Instead of 2-5GB per month, customers would get 20-30GB per month — still small by comparison to North America, Europe, and Asia, but perhaps tolerable in southern Africa.

Samsung is reportedly negotiating with wireless providers Vodacom and MTN, and Telkom (the former state-owned phone company) to offer the enhanced data packages.

So far, Samsung has been successful with Telkom, according to a press release sent last week:

This partnership will see Samsung and Telkom cooperate in the marketing of Samsung Smart TVs and fixed-line broadband solutions as bundled packages, thereby ensuring that consumers have access to affordable broadband while enabling Smart viewing experiences through Samsung’s latest Smart TV line-up.

No Wireless Spectrum Swap Until We See FiOS, Say Cities Waiting for Verizon Fiber Upgrade

Cities left out of Verizon Communications’ fiber to the home upgrade FiOS are telling the Federal Communications Commission to reject any wireless spectrum swap between the phone company and the nation’s largest cable operators unless Verizon commits to getting the fiber upgrade done in their cities.

Coordinated by the Communications Workers of America, which represents many Verizon workers, elected officials and community groups in Boston, Baltimore, and the upstate New York cities of Albany, Syracuse, and Buffalo collectively blasted the proposed swap as bad news for consumers.  On a city-by-city basis, they each filed comments with the FCC opposing the deal unless the Commission mandates Verizon complete fiber upgrades as a condition for the approval of the spectrum swap.

Buffalo’s argument:

For the past few years, we have watched as Verizon Communications has built its all fiber FiOS network in 10 suburban communities that ring our city. In those communities, we have seen what happens when Time Warner Cable, our local cable monopoly, competes head-on with Verizon’s FiOS to provide video and broadband services. Consumers benefit from competitive choice; small businesses benefit from truly high-speed connections to suppliers and customers; schools and hospitals benefit from education and health-related applications; communications workers benefit from the jobs building, maintaining, and servicing networks; and families and communities benefit from the 21st century jobs and expanded tax base.

But the residents and small business owners in Buffalo have not been able to reap these benefits. To date, Verizon has chosen not to deploy its all-fiber FiOS network to the more densely-populated city of Buffalo. The proposed Verizon Wireless/cable company partnership would cement this digital divide and foreclose the possibility of effective high-speed broadband and video competition in our city. Verizon Wireless is a subsidiary of Verizon Communications. We are deeply concerned that as a result of the new joint marketing agreement, Verizon will no longer have the incentive to invest in an all-fiber network that competes with Verizon Wireless’ new partner, the cable company. Therefore, to promote high-speed broadband investment and video competition, especially in heavily minority and lower-income areas like the city of Buffalo, the FCC should include as a condition for approval of this Transaction a requirement that Verizon continue to invest in and build-out its FiOS network to currently unserved areas that are inside its traditional telephone service area footprint, including the city of Buffalo and the surrounding areas.

Cole

In response, Verizon confirmed it never had any intention of wiring any of those cities for fiber service.  Multichannel News reports:

But a Verizon exec points out that those cities are all areas that were not scheduled to get FiOS, whether or not the cable spectrum deal goes through. As Verizon has pointed out, the company decided back in 2010 that it was going to build out the franchises it had already secured and target those 18 million customers in and around New York City, Washington, D.C., and Philadelphia, rather than spend any more of its shareholders money in a wider buildout. The above cities were not in those franchise areas.

Baltimore City Council member William H. Cole accused Verizon of leaving the city of Baltimore behind in a letter he addressed to the Commission this week:

High-speed, fiber-optic networks are vital for economic competitiveness. Currently, Verizon’s FiOS is the only all fiber-optic commercially-available network for businesses and households. Other advanced industrialized nations have already deployed fiber-optic networks on a large-scale; they recognize that high-speed fiber is the competitive infrastructure of the 21 st century. Much of the suburban areas outside of Baltimore already have FiOS. The City of Baltimore will never get a fiber-optic network if this deal is approved, which concerns me greatly. I am not willing to see Baltimore permanently relegated to the wrong side of the digital divide.

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Stop the Cap!