Creative Redefinition of Today's Problems Into Tomorrow's Solutions

At around 7:00pm ET, Republicans in the North Carolina State Senate are expected to ram through H.129, Rep. Marilyn Avila’s (R-Time Warner Cable) anti-consumer, anti-community broadband bill.

You can listen to the Evening of Infamy right here: North Carolina Senate Audio.

With the cooperation of most of the state’s Republicans, and a handful of Democrats taking cable’s money, North Carolina intends to solve their state’s broadband availability problems in a novel way: by redefining those without broadband service as having broadband after all.

Through an amendment, H.129 will essentially declare the service as widely available if even a single resident in a particular census block has access to something resembling broadband.  That could be 768kbps DSL from CenturyLink.  If one person has the service, the thinking goes, everyone can get it, even if they can’t.

The Senate intends to deal with North Carolina’s broadband crisis by changing the definition of the word ‘crisis‘ into ‘accomplishment.’ Instead of allowing communities to provide service in unserved areas, simply declare all areas as being served, thereby negating the need for community broadband.  Another victory for the free market, and it was dirt cheap not to provide the service, too!

So when broadband-deprived North Carolina consumers call Time Warner, CenturyLink, or AT&T, they can be told:

“No, it’s not that we don’t have any broadband service to sell you, we’re simply providing it in a unique new way — by delivering it to someone else!  (Can’t you move in with them?)”

Problem solved.

As one legislator said earlier, “[TWC and CenturyLink] are calling all the shots.”

Time Warner Cable's office on Mt. Hope Avenue in Rochester, N.Y.

More than two years after Time Warner Cable unveiled its DOCSIS 3 cable modem upgrade for New York City customers, Time Warner Cable has begun rolling out faster speeds in the metro Rochester area.  Rochester is the last upstate city to get DOCSIS 3, and Time Warner Cable has only soft-launched the upgrade in selected parts of the area — especially on the east side extending into Wayne County.

According to a Time Warner Cable representative we spoke with this afternoon, the service can now be ordered by customers in the following towns:

• Webster
• Perinton
• Sodus
• Macedon
• Medina
• Lima
• Covington

What do these communities all have in common?  They were all suffering from some congestion problems earlier this year.  Webster, in particular, was one of the worst-impacted areas.  Our readers reported dramatic speed reductions during peak usage times, often slowing to 1Mbps during the evening hours.  The most curious town on the list is Covington — a tiny community of 1,300 in extreme northeast Wyoming County.  Time Warner solved their congestion problems, and those experienced by other towns with DOCSIS 3 upgrades.

The representative we spoke with indicated a service call is required to activate either Road Runner Extreme (30/5Mbps) or Wideband (50/5Mbps).  A modem replacement is necessary.  Rochester area customers do not pay a modem rental fee, so the replacement comes free.  Signature Home customers in these areas should soon see 50/5Mbps speeds, if they have the company’s DOCSIS 3 modem.

Time Warner Cable will slowly expand the service to their other Rochester/Finger Lakes Region customers, with an estimated completion date of early summer.  The representative warned us not every Time Warner Cable representative may have the latest information allowing customers in these areas to order the service, so if you are told it is not available yet, and you live in one of these towns, you may want to try calling again.  Most of the Rochester area operators are briefed on the expanded service, but many in Buffalo are not, we were told, and there is no way to tell where your call will be answered.

Time Warner Cable has also unveiled some new price promotions for western New York.  Time Warner Cable’s website now sells its broadband-only service for a whopping $54.95 a month for Standard 10/1Mbps service.  Turbo runs an additional $10 a month (15/1Mbps service.)  That’s $15 more per month than just a few years ago when service could be had for $39.95 a month.  Broadband-0nly customers pay the highest prices because the company wants to drive its customers into multi-service bundled offerings.  The more services you take from Time Warner, the lower the price for each of them.

But for now, Road Runner Standard can be had by new customers for $33 a month for 12 months.  Turbo costs an extra $5 per month, making the out the door price for both around $38.  After the first year is up, prices go up.  Time Warner Cable in Rochester can be reached at (585) 756-5000.

One of Canada’s largest phone companies is willing to admit it is prepared to launch an Internet Overcharging scheme on its broadband customers now, while western Canada’s largest cable company would prefer to wait until after the next election to spring higher prices on consumers.

When Shaw’s president Peter Bissonnette told investors and the media he believes users who use more should pay more, all that needs to be put in place is exactly how much more Shaw customers will pay for already-expensive Internet access.  With Shaw making noises about usage-based billing, Telus felt it was safe enough to dive right into their own usage cap and overlimit fee pricing scheme.

Shawn Hall, a spokesperson for Telus, told CTV News that the phone company was ready to begin overcharging customers as soon as this summer.

Shawn Hall (CTV BC)

“It’s only fair that people pay for how much Internet capacity they use,” Hall told CTV.

Telus doesn’t seem to be too worried about the fact usage-based billing has become a major issue in the upcoming elections.  A review of the pricing scheme by the Canadian Radio-television and Telecommunications Commission is due within months, but the phone company isn’t going to wait.

Shaw is being more cautious.  After the pretense of a “listening tour,” and with federal officials breathing down their necks, Shaw wants to wait until the elections are over before moving forward on their own price gouging, according to Openmedia.ca.

As Stop the Cap! has told our readers repeatedly, corporate “listening tours” about Internet Overcharging are about as useful as lipstick on a pig.  Providers don’t actually listen to their customers who are completely against these pricing schemes — and every survey done tells us that represents the majority of customers.  Instead, they only hear what they want to hear, cherry-picking a handful of useful statements in order to make it appear they are responsive to customer needs.

Shaw heavily redacted their own meeting minutes on their website, completely ignoring a large number of customers unalterably opposed to usage-based billing of any kind.  Instead, statements that fit their agenda were repeated in detail, especially those that suggested average users don’t want to pay for heavy users.

Shaw executives discuss with investors how they will stick customers with usage-based billing, despite customers telling them they don’t want these schemes. April 13, 2011. (7 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.

It’s like arguing marathon runners should pay extra for the oxygen they consume because others don’t breathe as much.  It’s all a lot of hot air.

Broadband traffic costs providers only a small percentage of the amount they charge customers, and that number is dropping.  Yet providers want to raise prices, restrict usage, and charge punitive fees for those who exceed their arbitrary usage limits.

The power of the duopoly in place across most of western Canada has given providers little to fear from overcharging consumers.

Shaw CEO Bradley Shaw told investors they know few customers will switch providers if usage-based billing is imposed.

“We are of the mind that we still have a tremendous upside in terms of pricing power on our Internet services,” Shaw said.

The fact many Shaw customers have no other choice other than Telus does not escape Shaw’s notice either.

Telus’ Hall even had the nerve to call their Internet Overcharging pro-consumer.

Bissonnette

“It’s going to be really customer friendly,” he said. “You’d be forgiven for the first month you go over. You’d get lots of warning, lots of notice that you were going over with options of moving to other plans.”

Except an unlimited one — that is not available.

Openmedia.ca is trying to hold politicians’ feet to the fire on the issue of Internet Overcharging, demanding answers from every major party in Canada about how they will keep providers from imposing these pricing schemes.

Every major party, with one exception — the Conservative Party of Canada, has answered.  That’s the party currently in power.

Liberal Leader Michael Ignatieff has spoken out against usage-based billing, while NDP Leader Jack Layton has promised to ban it outright if elected to power.

Nearly a half-million Canadians have signed a petition opposing usage-based billing, and providers are showing once again they are not open to listening to anyone but their bean counters, intent on extracting as much cash as possible from Canadian customers’ wallets.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/CTV British Columbia – Shaw planning to revive metered internet billing critics 4-25-11.flv[/flv]

CTV in British Columbia covers Shaw’s plans to revive metered Internet billing later this year.  (2 minutes)

Stop the Cap! has learned Rep. Marilyn Avila’s (R-Time Warner Cable) anti-consumer, anti-competition, anti-community broadband bill H.129 is on the move again.  Now it’s up for a final vote in the Senate Finance Committee early Wednesday afternoon.  This is our last chance to derail this nasty piece of legislation before it hits the Senate floor and community networks start considering pulling the plugs on their expansion efforts.

North Carolina is YOUR state.  The state legislature is not Time Warner Cable’s personal playground, where they can order up customized corporate protection bills to protect their monopoly profits and stick you with higher bills.  It’s time to let your state senator know H.129 is totally unacceptable.  North Carolina is suffering from America’s worst broadband, and nothing about H.129 will make it any better.  Instead, companies like Time Warner and CenturyLink will continue to charge more for less service than other states enjoy.

North Carolina needs all of the broadband it can get, and with the defeat of H.129, the towns and communities big providers have bypassed for years can finally address their own needs without enduring years of broken promises for broadband service that never seems to materialize.

Our allies at Free Press have made this as convenient as can be.  Check out their legislator look-up page, which will get you the contact information for your state senator.  Then make the call starting tonight (you can even leave a message on their voicemail):

“Hello, I am calling to ask Senator “x” to oppose H.129, Rep. Avila’s anti-broadband bill now before the state Senate.  H.129 is nothing short of a protection bill for Time Warner Cable’s fat profits and does not bring a single new broadband connection to our state.  If communities want to build better broadband for people like me, I say let them.

North Carolina has the worst broadband in the country and large parts of our state cannot get it even if they wanted it.  We have the power today to hold our local leaders responsible if they stray too far — it’s called an election.

We don’t need Ms. Avila and Time Warner Cable, an out of state corporation, telling us what kind of broadband service we can get.

I absolutely expect you to oppose H.129 and I am carefully watching who votes for and against this legislation as it will be a major determining factor how I vote in the next election.  Please feel free to contact me at (provide name, address, and phone number.)  Thank you for hearing me.”

We need your calls to make the difference!

Commercial providers and their pals in the legislature will go to any length — even lie — to protect their cozy duopoly, charging high rates for poor quality service.

That fact of life has been proven once again in the state of Tennessee, where an effort to expand EPB Fiber — a community owned fiber network — to nearby communities outside of Chattanooga, was killed thanks to a lobbying blitzkrieg by Big Telecom interests.

The “Broadband Infrastructure for Regional Economic Development Act of 2011,” supported by chief sponsor House Majority Leader Gerald McCormick, (R-Chattanooga), is dead after telecom industry lobbyists unleashed a full court press to stop the legislation from passing into Tennessee law.

The bill would have permitted EPB and five other municipal electric services that have or are developing broadband infrastructure to expand service up to 30 miles outside of their service area, where appropriate, to meet the needs of businesses or consumers.

With the legislation, EPB could bring its 1 gigabit fiber broadband service to Bradley County, home to a future Amazon.com distribution center.  Amazon already operates a huge warehouse in Hamilton County, where it was able to obtain EPB’s super-fast broadband service.  According to Harold DePriest, EPB President and CEO, Chattanooga’s fiber network is helping sell the city as a high-tech mecca for business, where broadband connectivity is never a problem.

DePriest says EPB’s network has been a proven job-creator, and Amazon.com’s ongoing expansion in the region is just one example.

Chattanooga residents and businesses now have the fastest broadband service in the southern United States, at prices often far less than what the competition charges.  Expanding EPB’s success to other parts of Tennessee represents a major threat to the likes of Comcast and AT&T, the state’s dominant telecom companies.

EPB provides municipal power, broadband, television, and telephone service for residents in Chattanooga, Tennessee

Lobbyists fought the bill off with some whopper tall tales about the “horrors” of community broadband.

Some Republican lawmakers friendly to Comcast and AT&T’s point of view have bent their philosophical positions on government and regulation into logic pretzels.  One has even called for EPB to be regulated by Tennessee’s Regulatory Authority, a body many state Republicans feel is about as helpful as a tax increase.

Despite that, there was Rep. Curry Todd (R-Collierville) at a recent hearing telling fellow lawmakers EPB and other community providers should be regulated by the TRA to protect ratepayers from the “loss of tremendous amounts of money coming out of taxpayers’ pockets.”

Does Todd think Comcast and AT&T should also be regulated?  Of course not.  Nobody should protect consumers from AT&T’s and Comcast’s relentless rate hikes.  Todd cannot even get his facts straight.

After 19 months, EPB has 25,500 customers — far ahead of its projections, and is well ahead of its financial plan, according to DePriest.  So much for being a “financial failure.”

Rep. Curry Todd has trouble with the facts, but has no problem counting campaign contributions amounting to more than $12,000 from Comcast, AT&T, the state cable lobby and other telecom companies

On cue, the same cable industry that tried to sue EPB Fiber out of existence is now comparing the Chattanooga fiber network to Memphis Networx, a disastrous effort by that city to build a public-private wholesale fiber optic network only business and institutions could directly access.  It’s hard to earn critical revenue from consumers when you run a wholesale network.  Even harder when you build it just before the dot.com crash.

EPB sells its service directly to business and consumers, so it gets to keep the revenue it earns, paying back bondholders and delivering earning power.

Stop the Cap! reader John Lenoir notes some of the local tea party groups are also being encouraged to oppose EPB’s efforts to expand.

“Just as Americans for (Corporate) Prosperity is lying about North Carolina’s community broadband, these corporate front groups are also engaged in demagoguery over EPB in Tennessee,” Lenoir says.  “In addition to the usual claims EPB represents ‘socialism,’ the locals are also being told EPB wants to use their fiber network to run smart meters, which some of these people suspect are spying on them or will tell people when they can and can’t use their electric appliances.”

Lenoir in unimpressed with the telecom industry arguments.

“AT&T’s opposition is downright laughable, considering this company raised its rates on U-verse and will slap usage limits on every broadband customer in a few weeks,” Lenoir adds.  “We thank God EPB is here because it means we can tell AT&T to stick their usage limits and Comcast can take their overpriced (and usage limited) broadband somewhere else.”

Lenoir thinks EPB should embarrass both AT&T and Comcast, but since neither company feels any shame in his view, it’s more about business reality.

“Why do business with AT&T or Comcast and their gouging ways when you can sign up for something far better and support the local community,” Lenoir asks.

AT&T spokesman Chris Walker complains that the phone company is somehow faced with an unlevel playing field in Tennessee, despite the legislature’s repeated acquiescence to nearly every AT&T-sponsored deregulatory initiative brought before it.  The company wants a “level playing-field” statute like the very-provider-friendly (it should be — it was written by them) one currently before the North Carolina state Senate.

Comcast questions whether anyone needs 1 gigabit service, but the cable company’s Chattanooga vice president and general manager Jim Weigert told the Times Free Press it could deliver 1 gigabit service… to business customers… assuming any asked.

DePriest questions that, noting Comcast tops out its broadband service at 105Mbps, and only for downstream speeds.  Comcast upload speeds top out at 5Mbps.  EPB can deliver the same upstream and downstream speeds to customers and do it today.