Google today launched a new website which could become a major advocacy center to promote fiber broadband service across America.

Google Fiber for Communities opened with a thank you message for the enormous number of submissions it received for its experimental 1Gbps fiber broadband network.  Google expects to announce the winning application(s) for its experimental  network sometime this year.

But in the meantime, Google also acknowledges what big telecom companies keep trying to downplay and dismiss — “people across the country are hungry for better and faster broadband access.”  That is… better and faster service than their current provider is willing to supply.

The new website provides hints as to its greater purpose:

1. The name itself.  Notice “communities” is plural.
2. The site intends to mobilize for fiber networks across the country, starting with lobbying for pending federal legislation that would require installation of fiber conduit as part of federal transportation projects.
3. The site’s links heavily promotes municipal broadband advocates and organizations, including the National Association of Counties, the National Association of Telecommunications Officers and Advisors, the Fiber to the Home Council, the Baller Herbst Community Broadband Page, the Broadband Properties Municipal Fiber Portal, and Muni Networks.  Outside of the Fiber to the Home Council, which has some big telecom company members and isn’t above advocating for their interests, the rest of the list suggests Google advocates that communities do for themselves what their local phone and cable companies won’t do — deliver world class broadband service at non-duopoly prices.

Stop the Cap! shares many of these goals with Google, as we are strong advocates for community fiber-based broadband, and believe additional competition is highly needed in America’s broadband marketplace to break up an anti-consumer duopoly that delivers slow broadband service (or none at all) at the highest prices companies can get away with.  Thanks to Stop the Cap! reader Jerry here in Rochester for sending word.

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Inouye

Three senior Democrats on the Senate Commerce Committee have characterized the Federal Communication Commission’s national broadband expansion plans as inadequate — firmly rooting America as second class citizens in a global broadband market.

In three separate letters to FCC Chairman Julius Genachowski, the senators criticized the chairman’s plan for broadband targets set too low, both in vision and in speed.

Genachowski’s plan calls for Americans to have universal access to at least 4/1Mbps service no later than 2020, a goal Genachowski described as “an aggressive target.”

But in a letter obtained by CQ, Senator Daniel Inouye (D-Hawaii) noted that such speed goals were set low in comparison to other countries, many of which are on target to achieve 100Mbps broadband well before 2020.

“What is the FCC’s rationale for a vision that appears to be firmly rooted in the second tier of countries?” Inouye wrote.

Begich

Senator Mark Begich (D-Alaska) wanted to know how Genachowski settled for 4Mbps download speed, noting that seemed to him to be too modest.

In fact, speed goals in the National Broadband Plan were a major point of contention in the National Broadband Plan, with lobbyists from AT&T and Verizon pushing hard for the lowest possible speed goals.  That is because they are the largest traditional landline providers saddled with aging copper wire networks which provide broadband to most rural Americans through DSL.  Most Americans living outside of major population centers rely on phone company-delivered DSL service typically speed rated at 768kbps-3Mbps.  Because DSL service is distance sensitive, a speed target of just 4Mbps requires a considerably lower investment than a target of 20Mbps or higher.  It is likely 100Mbps service, outlined as a goal for at least 100 million Americans, will first be achieved through fiber and cable networks in large cities, and not from phone company DSL service.

The difficulty for rural Americans to achieve a fair shake in broadband was highlighted by Senator Byron Dorgan (D-North Dakota).  He cited his state’s poor ranking — 42nd in broadband speed, as evidence Americans in rural states suffer with considerably lower quality broadband service.  The FCC’s National Broadband Plan, Dorgan fears, may only recreate the digital divide, only with different levels of speeds.

Dorgan

If 100 million Americans can access broadband services at 100Mbps, a rural speed target of 4Mbps will make new, high bandwidth-dependent Internet services just as off-limits to rural America as basic broadband is today in many areas.

Genachowski promised to review broadband speed targets every four years, making adjustments when necessary to be certain rural Americans receive broadband service comparable to urban areas.

But with the wide disparity in speed goals for urban and rural America, that may be impossible in the short term, especially as telecom industry lobbyists continue to pressure Congress for less regulation and no government mandates.

Week one of the transition for millions of ex-Verizon landline customers didn’t exactly go off without a hitch.  A few problems with support issues for certain business customers in West Virginia, a major multi-state DSL outage from a fiber cable cut in Virginia, and long hold times of 30 minutes or longer have afflicted the all-new, super-sized Frontier.  Also not inspiring confidence: a plummeting Frontier stock price as Verizon shareholders, which now own 68 percent of Frontier Communications are hurrying to dump their stock and get out.  It has gotten so bad, TradersHuddle declared Frontier Communications the worst performing stock on the S&P 500.

Not much of this comes as a surprise, particularly the fleeing of Verizon shareholders who received 0.24 shares of Frontier, worth about $1.75 on July 1st (but now dropping fast), for every Verizon share they owned on June 7.  They’ve learned from prior experience that holding onto spun-off stock from similar deals with companies like FairPoint Communications and Hawaiian Telcom ended in financial disaster — bankruptcy.  As we predicted last Halloween in our true-to-life telecom horror story, once this deal was completed, Verizon shareholders would rush for the exits, selling their Frontier stock even as the share price plummets.

Shanthi Venkataraman, a reporter for The Street, noted the selloff in progress after the 4th of July holidays.  On Tuesday the stock was down 4.5% to $7.02. More than 30 million shares have changed hands, five times its average trading volume of 6.3 million.  Analysts believe the “turbulence” in Frontier stock is likely to continue for another week as new shareholders from Verizon complete their sell-off.

Zack’s Analyst Blog notes shareholders should be concerned with the future of Frontier’s business model — focusing on a decaying landline business.  Frontier’s revenue is particularly in peril in their biggest service area, Rochester, N.Y., which represents 25 percent of the company’s total access lines.  Customers in the Flower City continue to dump Frontier’s phone and broadband services, preferring Time Warner Cable’s less expensive “digital phone” and far faster Road Runner Internet service.  Time Warner Cable has consistently reported much of their growth in new customers has come from departing landline and DSL broadband customers disconnecting service.

While shareholders have the power to cut ties with Frontier, rural telephone customers in 14 states now confronted with a shotgun wedding to Frontier are not so lucky.  For millions of rural customers, there is no other choice for telephone and broadband service.

Stop the Cap! has reviewed dozens of local news accounts regarding the transition Verizon customers are now confronting as they are introduced to Frontier Communications.  Overall, most of the rural communities are taking a “wait and see” approach, hoping Frontier’s near-universal promises of better broadband and improved customer service will come true.  Verizon effectively slashed spending at least a year or two ago in many of these communities knowing in advance they were not going to be around for much longer.  In states like West Virginia, the results have been devastating for broadband penetration statistics.  While Verizon prepared for a sale, it kept nearly the entire state waiting for better broadband that would never come from the telecom giant.  Now with news Frontier plans to spend millions to improve broadband in the state, residents are hoping that will actually bring a broadband breakthrough in West Virginia.  Time will tell.

Many communities who have long felt ignored as “too small to matter” in Verizon’s larger plans also hope Frontier will manage better customer relationships with residents. After all, Frontier is promoting itself as the phone company with the small-town feel.  But after week one, some customers are feeling Frontier is giving them the big city runaround.  We’ll explore that, and the reactions from community leaders, consumers and businesses to the promises Frontier is making in our multi-part series exploring their transition to Frontier.

For more than a year, Stop the Cap! has been covering the issue of broadband mapping, warning against allowing incumbent telecommunications companies from being able to control or influence statewide maps that show who has broadband, and who does not.  A perfect example of why we repeatedly call out telecom-connected groups like Connected Nation being granted a piece of the mapping action can be found this weekend in a guest editorial published in the Fort Worth Star–Telegram written by Todd Baxter, vice president of government affairs and general counsel for the Austin-based Texas Cable Association — the Texas cable lobby:

Newly released maps show that broadband — high-speed Internet — is widely available in Texas. They also underscore that the broadband stimulus program has been ill-conceived and poorly executed by the federal government.

That’s because the federal government put the cart before the horse.

It gave out more than $270 million of your money to a dozen projects in Texas before actually determining where current broadband operators provide service. Common sense would say to find out where broadband is, or isn’t, available before spending the money.

The feds also should better define “underserved,” since the money is intended to help both unserved and underserved areas. It sounds like a riddle — how many broadband providers have to serve a household before it isn’t considered “underserved”? So far that riddle has no answer, and it is costing you, the taxpayer, a lot of money.

Without the data or the definition, how can the federal government make sure it is spending taxpayer money wisely and where it is really needed?

Now that we have the maps, we can see that more than 99 percent of all Texans can access some form of broadband, whether wired, wireless or mobile, from more than 123 providers. Yet — without this information — the federal government awarded hundreds of millions in grants and loans to the Texas projects, with possibly more to come before the broadband stimulus program wraps up in September.

The Texas Cable Association formally objected to seven of the dozen Texas projects when in the application stage, because the areas addressed are already covered by existing broadband providers. We don’t believe the areas are unserved or underserved.

Just a few weeks ago, the Texas Agriculture Commissioner Todd Staples, with great fanfare, unveiled the current state of broadband in Texas.  Connected Texas, a subsidiary of Connected Nation joined forces with the state government to perform a broadband census across the state, based on voluntary information provided confidentially by existing service providers.  The result was the stunning “achievement” that 97 percent of Texas already had broadband access, quite a revelation to the scores of consumers who aren’t served by cable companies and cannot get DSL service from the phone company, even if the Broadband Map of Texas says they can.

Texas Broadband Map (click to enlarge)

Kelly from Childress, located in the Texas panhandle, is a perfect example.  She writes Stop the Cap! to tell us how thrilled she was to see the phone company had finally brought DSL service to her street just on the outskirts of town.  She had nagged everyone she could for more than three years about her lack of broadband.  The cable company offered service, if she paid $9,300 for installation of an extended cable line to reach her.  The phone company, despite serving her neighbors less than 1/2 mile away, said she was not “qualified” to receive DSL service.  Today, her husband and two kids do access broadband service, albeit from the equivalent of the broadband black market.  Her nearest neighbor has rigged a souped up Wi-Fi system that allows her family to share the neighbor’s DSL account.  A directional antenna mounted on the roof of each home provides line-of-sight access.  They split the cost of the account and Kelly, an accomplished baker, keeps her neighbors well-supplied with some great pies in gratitude.

Connected Texas collected the information about where broadband service was supposedly available in Texas

Texas has a well-deserved reputation for neighbors helping neighbors to solve problems they’ve long since decided the government can’t, won’t, or shouldn’t solve for them.  Now that neighborly spirit has taken a high-tech approach to share broadband.

With the release of the new broadband map, Kelly thought the days of sharing accounts was over, and she called the phone company to sign up for service.  But, in no surprise to us, broadband availability to her home changed only on paper, not in reality.  No, she was told, she could not sign up for DSL service today or tomorrow for that matter — the company had no plans to extend service her way… indefinitely.

For others, the map is inaccurate because it shows service from dominant cable and phone companies, but ignores the competition.  Regular Stop the Cap! reader Michael Chaney noted, “I know for a fact this map is inaccurate. They show no fiber to the home coverage in Cedar Park, Williamson County, even though I’ve had residential fiber service for almost two years.”

In 2009, Public Knowledge released a report highly critical of Connected Nation, the group responsible for broadband mapping across many states.  Among the findings:

In order to be effective, a national broadband data-collection and mapping exercise should be conducted by a government agency, on behalf of the public, with as granular a degree of information as possible and be totally transparent so that underlying information can be evaluated.

Connected Nation is none of those and represents none of those characteristics. It is an organization sponsored by the telephone and cable companies and represents their interests in deciding what data to collect and how information should be displayed. They are quite up front about their company sponsorship and, in fact, believe it is an asset, if in a way counter to solid public policy.

It would be a setback for our broadband policy if Connected Nation were to take a prominent role in broadband mapping and data collection if it continues on its present policy course because the organization does not represent wise public policy and because it distorts its results.

Kentucky Gov. Steve Beshear (D) was correct in April, 2008, when he vetoed a $2.4 million appropriation for Connect Kentucky, which until then had received almost $7 million from the commonwealth. Beshear said that the program was being rejected for state financing because it had asked for funds “without specifically identifying any services to be rendered to the state or providing for any oversight, control or performance measures relative to the services being rendered.”

The group’s close association to incumbent cable and telephone company interests were easily apparent just from the national organization’s board which has 12 outside directors, eight of whom are well known cable and phone company lobbyists or those with direct interests in the industry:

• James W. Cicconi – AT&T senior executive vice president-external and legislative affairs
• Steve Largent – CTIA – The Wireless Association president and CEO
• Joseph W. Waz – Comcast senior vice president, external affairs and public policy counsel
• Larry Cohen – Communications Workers of America president. CWA is in frequent agreement with telecom companies on policy issues.
• Thomas J. Tauke – Verizon executive vice president for public affairs, policy and communication
• Walter B. McCormick – United States Telecom Association president
• Kyle E. McSlarrow – National Cable and Telecommunications Association president
• Grant Seiffert – Telecommunications Industry Association president. (The members are the equipment makers who sell their gear to the telecom industry.)

These individuals, and others, are listed as “national advisors” on the Connected Nation Web site. They are listed as “directors” in their filing with the Kentucky Secretary of State.

The implications of allowing incumbent service providers to influence broadband mapping can be seen in Baxter’s editorial.  If Texas cable and phone companies can declare broadband service available even in areas where it is not, they can then argue against broadband stimulus projects to expand availability as an unnecessary waste of taxpayer money.  The answer to Baxter’s riddle is, unfortunately, too often “none.”  Areas that declare access to wireless broadband, cable and DSL often have access to none of these options.  The cable company doesn’t wire that Texas ranch located too far away from the phone company for DSL and is in an area that just can’t get a good wireless signal.

In smaller communities in rural Texas, efforts by local entrepreneurs to launch needed local broadband services often meet fierce opposition from incumbent interests who declare communities already served, backed up with a map that shows coverage, and therefore should not be allowed to receive stimulus funding.  Often, objections from existing providers effectively disqualifies stimulus applicants and the result is a continued blockade for rural broadband.

The dividend Connected Nation hands to the Texas Cable Association is the political argument that there is no broadband problem in Texas — nearly 100 percent of homes can already access it.  That means broadband stimulus is, in the eyes of the cable lobby, just another federal government giveaway — wasteful spending of tax dollars.  Just look at the Texas Broadband Map and see for yourself.

The Texas Department of Agriculture failed the people of Texas by relying on a group with a vested interest in not finding a broadband availability problem.  And even worse — taxpayers nationwide effectively picked up the $3 million dollars in grant money given to Connected Nation for its map.  That’s a waste of tax dollars that Baxter didn’t bother to bring up.  Somehow I knew he wouldn’t.

Seoul, the capital city of the Republic of Korea

Seoul, the capital of the Republic of Korea, is the world’s most wired city with some 95 percent of residents enthusiastic users of the world’s fastest broadband networks.

While Americans cope with a broadband duopoly that holds us back, the 100Mbps world of broadband has already arrived in Korea, at prices a fraction of what Americans pay for service — with no limits.

A full 95 percent of households in South Korea have broadband internet access – the highest in the world. Singapore is second to South Korea, with broadband connection in 88 percent of homes. The U.S. ranks 20th, with broadband connection in 60 percent of homes.

Although densely populated cities in Korea, where residents live in multi-dwelling units, makes wiring fiber optic broadband easy, that’s not the only reason why South Korea is so far ahead of the United States.

Koreans consider broadband an essential part of life, a representation of their sense of freedom, as well as a tool to help Korea’s development in a global economy.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/ABC News Seoul The World’s Most Wired City 6-25-10.mp4[/flv]

ABC’s ‘Good Morning America’ visited Seoul to learn how the world’s most wired city has been transformed by universal, inexpensive, super-fast broadband.  (5 minutes)

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/ABC News Why So Wired South Korea 6-25-10.mp4[/flv]

ABC’s Juju Chang sat down for an interview with Yongmann Park, chairman of Doosan Corporation, one of Korea’s successful business conglomerates.  (2 minutes)