Home » caps » Recent Articles:

Census Bureau Reports Internet Penetration Lowest in Urban Poor and Rural Areas

There are stark contrasts in internet subscription rates depending on where you live and how much money you make, according to newly released findings from the U.S. Census Bureau.

As the cost of internet access continues to rise, affordability is increasingly a problem for poor Americans. In rural areas, a lack of broadband availability is also holding down subscription rates.

Telfair County, Ga. has the dubious distinction of being America’s worst connected county, with just 25% of households signed up for internet access. The most connected communities are found in suburban areas surrounding major cities along the Pacific Coast and northeastern U.S. More than 90% of households also have internet access in suburban areas outside of the District of Columbia, Atlanta, and Denver.

Urban Poor Americans Can’t Afford Increasingly Expensive Service Plans; Many Turn to Smartphones Instead

Although internet subscription rates are sky-high in wealthier suburban areas, poor inner city neighborhoods score poorly for internet subscriptions. In the Chicago metropolitan area, 77% of Cook County households subscribe to the internet. In downtown Los Angeles, just 80% are signed up. In D.C., only 78% subscribe.

In Philadelphia, there were some neighborhoods with just 25% of residents getting internet service. In the Tioga-Nicetown neighborhood, only 37.1% of households had internet service. Persistent poverty, crime, unemployment, and low-income in poorer parts of the inner city have conspired to make it very difficult for residents to afford internet access at prices often over $50 a month.

Increasingly, poor urban residents are turning to their smartphones as their sole source of internet. In the Philadelphia neighborhood of Fairhill, where internet subscriptions are below 38%, 12% of homes report smartphones are the only way they connect to the internet.

Pew Research Center senior researcher Monica Anderson told The Inquirer that 31 percent of Americans who earn less than $30,000 a year now rely only on smart phones for internet access, a percentage that has doubled since 2013.

“We are seeing smartphones help more people get online,” she told the newspaper, adding that data caps and data plan costs lead people to cancel or suspend services.

Rural and Native Americans Suffer Without Service, If They Can Afford It

Some of the worst scoring counties where internet subscription rates were lower than average are located in rural areas across the upper Plains, the Southwest and South. The desert states of Arizona and New Mexico, south Texas, the lower Mississippi through Southern Alabama and some areas of the Piedmont of Georgia, the Carolinas and Southern Virginia were notable for containing many counties with low broadband internet subscription rates, although there were exceptions throughout.

Only 67% of Native Americans have signed up for internet access, compared with 82 percent for non-Native Americans. Native Americans living on American Indian land had a subscription rate of 53 percent.

Thirteen percent of the counties achieving better than an 80% subscription rate were located in “mostly rural” or “completely rural” counties, often getting telecommunications services from a local co-op or municipal utility. Assuming a rural customer can buy internet access, the next impediment is often cost.

In “mostly urban” counties with median household incomes of $50,000 and over, the average broadband internet subscription rate was roughly 80 percent, while in “completely rural” counties with the similar median incomes, the average broadband internet subscription rate was only 71 percent.

“Mostly urban” counties with median household incomes below $50,000, however, only reported average broadband internet subscription rates of 70 percent while “completely rural” counties with similar median incomes had average broadband internet subscription rates of just 62 percent.

This contrast showed up most dramatically in the South. Of the 21 counties with populations of at least 10,000 and broadband internet subscription rates at or above 90 percent, 12 were in the South, four were in the Midwest, four in the West, and one in the Northeast. Conversely, of the 24 counties with broadband internet subscription rates at or below 45 percent and populations of at least 10,000, 21 were in the South, two were in the West, and one was in the Midwest.

By 2022, Online Video Will Make Up 82% of Internet Traffic; 60% of the World Will Be Online

By the year 2022, 60% of the world’s population will be connected to the internet and 82% of online traffic will come from streaming video.

Those are the conclusions found in Cisco’s newest Visual Networking Index (VNI), based on independent analyst forecasts and real-world network usage data tracked by the networking equipment manufacturer.

“By 2022, more IP traffic will cross global networks than in all prior ‘internet years’ combined up to the end of 2016,” Cisco predicts. “In other words, more traffic will be created in 2022 than in the 32 years since the internet started.”

Key predictions for 2022

Cisco’s VNI looks at the impact that users, devices and other trends will have on global IP networks over a five-year period. From 2017 to 2022, Cisco predicts:

  1. Global IP traffic will more than triple

    • Global IP traffic is expected to reach 396 exabytes per month by 2022, up from 122 exabytes per month in 2017. That’s 4.8 zettabytes of traffic per year by 2022.
    • By 2022, the busiest hour of internet traffic will be six times more active than the average. Busy hour internet traffic will grow by nearly five times (37 percent CAGR) from 2017 to 2022, reaching 7.2 petabytes1 per second by 2022. In comparison, average internet traffic will grow by nearly four times (30 percent CAGR) over the same period to reach 1 petabyte by 2022.

      1 A petabyte is equal to 1,000 terabytes or one million gigabytes.

  2. Global internet users will make up 60 percent of the world’s population

    • There will be 4.8 billion internet users by 2022. That’s up from 3.4 billion in 2017 or 45 percent of the world’s population.
  3. Global networked devices and connections will reach 28.5 billion
    • By 2022, there will be 28.5 billion fixed and mobile personal devices and connections, up from 18 billion in 2017—or 3.6 networked devices/connections per person, from 2.4 per person.
    • More than half of all devices and connections will be machine-to-machine by 2022, up from 34 percent in 2017. That’s 14.6 billion connections from smart speakers, fixtures, devices and everything else, up from 6.1 billion.
  4. Global broadband, Wi-Fi and mobile speeds will double or more
    • Average global fixed broadband speeds will nearly double from 39.0 Mbps to 75.4 Mbps.
    • Average global Wi-Fi connection speeds will more than double from 24.4 Mbps to 54.0 Mbps.
    • Average global mobile connection speeds will more than triple from 8.7 Mbps to 28.5 Mbps.
  5. Video, gaming and multimedia will make up more than 85 percent of all traffic
    • IP video traffic will quadruple by 2022. As a result, it will make up an even larger percentage of total IP traffic than before—up to 82 percent from 75 percent.
    • Gaming traffic is expected to grow nine-fold from 2017 to 2022. It will represent four percent of overall IP traffic in 2022.
    • Virtual and augmented reality traffic will skyrocket as more consumers and businesses use the technologies. By 2022, virtual and augmented reality traffic will reach 4.02 exabytes/month, up from 0.33 exabytes/month in 2017.

Regionally, Asian-Pacific internet users are expected to use far more internet data than North Americans — 173 exabytes a month by 2022 vs. 108 exabytes in North America. Usage caps, usage-based pricing, and overall slower internet speeds in the U.S. and Canada have slowed growth in new high-bandwidth internet applications. The prevalence of low-speed DSL in rural areas also restricts potential traffic growth. Large parts of the Asia-Pacific region use very high-speed fiber to the home technology.

The slowest growing regions — Latin America and the Middle East/Africa, which lag behind in internet penetration, often apply low usage caps or bandwidth restrictions and often do not have the ability to financially scale growth to meet demand. Even by 2022, Latin America will generate only 19 exabytes of traffic per month.

Verizon Starts Taking Orders Thursday for 5G Home Internet in Houston, Indianapolis, LA and Sacramento

Verizon 5G Home will begin accepting new customer orders for its in-home wireless broadband replacement as of this Thursday, Sept. 13, with a scheduled service launch date of Oct. 1.

The new high-speed wireless service will be available in select parts of Houston, Indianapolis, Los Angeles, and Sacramento.

Verizon CEO Hans Vestberg is calling the service part of Verizon’s 5G Ultra Wideband network. Initial reports indicate speed will range between 300-1,000 Mbps and existing Verizon Wireless customers will get a $20 price break on service — $50 a month instead of $70 for non-Verizon Wireless customers. We are still waiting word on any data caps or speed throttle information. Verizon informs Stop the Cap! there are no data caps or speed throttles. Service is effectively unlimited, unless hidden terms and conditions introduce unpublished limits.

Interested customers can determine their eligibility starting at 8 a.m. ET on Thursday from the Firston5G website. If you are not eligible initially, you can add your email address to be notified when service is available in your area.

Early adopters will be awarded with a series of goodies:

  • Free installation (a big deal, since it could cost as much as $200 later. An external antenna is required, as well as in-home wiring and equipment.)
  • 90 days of free service (a good idea, considering there may be bugs to work out)
  • 90 days of free YouTube TV (a welcome gift for cord-cutters)
  • Free Chromecast or Apple TV 4K (a common sign up enticement with streaming cable-TV replacements)
  • Priority access to buy forthcoming line of 5G-capable mobile devices

Customers in the first four launch cities will be using equipment built around a draft standard of 5G, as the final release version is still forthcoming. Verizon is holding off on additional expansion of 5G services until the final 5G standard is released, and promises early adopters will receive upgraded technology when that happens.

Verizon is clearly providing a greater-than-average number of enticements for early adopters, undoubtedly to placate them if and when service anomalies and disruptions occur. Although Verizon has done limited beta testing of its 5G service, it is very likely the 5G network will get its first real shakeout with paying customers. Unanticipated challenges are likely to range from coverage and speed issues, unexpected interference, network traffic loading, the robustness of Verizon’s small cell network, and how well outside reception equipment will perform in different weather conditions, particularly heavy rain and snow. With a large number of freebies, and no charges for 90 days, customers are likely to be more forgiving of problems, at least initially.

Chromecast

Verizon’s 5G network depends on millimeter wave spectrum, which means it will be capable of providing very high-speed service with greater network capacity than traditional 4G LTE wireless networks. But Verizon will have to bring 5G antennas much closer to subscribers’ homes, because millimeter wave frequencies do not travel very far.

Verizon will combine a fiber backhaul network with small cell antennas placed on top of utility and light poles to reach customers. That explains why Verizon’s initial 5G deployment is unlikely to cover every customer inside city limits. There are substantial deployment costs and installation issues relating to small cells and the optical fiber network required to connect each small cell.

Verizon’s existing FiOS network areas will offer an easier path to introduce service, but where Verizon does not offer its fiber to the home service, it will need to bring fiber optic cables deep into neighborhoods.

AT&T sees a similar challenge to 5G and is openly questioning how useful wireless 5G can be for urban/suburban broadband service, considering it can simply extend fiber optic service to those homes and businesses instead, without a costly 5G small cell deployment.

Verizon introduces 5G wireless in-home broadband in four U.S. cities and starts taking new customer orders on Thursday. (1:00)

Article updated at 6:28pm ET with information about data caps and speed throttles provided by Verizon.

C-Spire Introduces Unlimited 120 Mbps Fixed Wireless for $50/Month in Mississippi

For residents of 10 Mississippi communities, an alternative broadband option is now available delivering up to 120/50 Mbps speed with no data caps or throttling for a flat $50 a month, taxes and fees included.

C Spire 5G Internet” is as described, except it doesn’t use the official 5G standard and will require the installation of a “dinner plate”-sized antenna on one’s home to get the service.

C Spire is using an 802.11 variant with equipment developed by Mimosa and Siklu, leveraging C Spire’s existing 8,400 route miles of fiber infrastructure to extend service wirelessly to each customer without the cost of wiring a fiber optic cable to the home.

Siklu’s EtherHaul products work in conjunction with its point-to-point and point-to-multipoint radios that operate in the 60 and 70-80 GHz millimeter wave bands. Because of the vast amount of spectrum available on these uncongested frequencies, C Spire can provide connections up to 10 Gbps from each small cell site.

C Spire is using Siklu’s EH-600 mmWave backhaul equipment for its fixed wireless internet service in Mississippi.

Mimosa supplies short-range MicroPoP architectures and in limited tower deployments including Mimosa A5 and A5c access devices, Mimosa C5 client devices, and Mimosa N5-360 beamforming antennas.

“Our service is backhauled by Siklu’s carrier grade solutions enabling us to deliver high-speed internet access without the arbitrary data caps usually associated with LTE or satellite services,” said C Spire president Stephen Bye.  “With a flat rate of $50 a month, which includes taxes and fees, our customers can now easily get all of the content they want and need.”

C Spire said it is quickly working to introduce the service in “dozens” of markets in Mississippi, in addition to its earlier plans to offer fixed wireless to over 90,000 locations across its service area. The “5G” fixed wireless service being introduced in Mississippi is not the same as C Spire’s earlier fixed wireless initiative.

Customers report wireless speeds are within a reasonable range of what is advertised, but antenna placement can be critical to get the best speed. It isn’t known how many customers are currently sharing each small cell site, and C Spire has protected itself with a contract clause allowing it to begin data caps, usage based billing, or targeted suspensions for customers deemed to be consuming too much data if network congestion becomes a problem.

Mississippi is broadband-challenged because many of its rural locations are populated with some of the country’s poorest citizens. AT&T, the state’s largest phone company, has shown little interest expanding fiber into many of these areas, especially in northern Mississippi, and the state’s cable companies include Cable One, notorious for being expensive and data-capped. As a result, the state is ranked 49th out of 50 for broadband availability.

C Spire is a regional mobile provider — the sixth largest in the country — and directly provides its own cell service in Memphis, Tenn., Mississippi, Alabama, and the Florida Panhandle.

C Spire introduces 120 Mbps fixed wireless internet access for a flat $50 a month in Mississippi. No data caps or throttling. This company produced video introduces the service. (1:23)

Data Cap Vendor Shows Off “Revenue Accelerator,” Helping Cable Companies Monetize Usage

Phillip Dampier July 24, 2018 Consumer News, Data Caps, Net Neutrality No Comments

OpenVault’s technology can automatically slow down “abusers” who use too much internet service.

Cable companies looking for ways to raise prices for their broadband services without spending money on network upgrades may be interested in OpenVault’s “Revenue Accelerator” — a cloud based internet usage measurement system that can help push subscribers into higher priced tiers or warn them when they are about to face punitive overlimit fees for exceeding their monthly usage allowance.

OpenVault’s goal is to monetize customers’ internet usage, making cable operators certain each customer is paying as much as possible for internet service without facing customer-displeasing overlimit fees from exceeding their monthly usage allowance.

“All these solutions are designed really to do of a couple things,” said OpenVault CEO and founder Mark Trudeau, in an interview with FierceTelecom. “One is to drive incremental revenues, and two is to drive costs [for cable operators] down, all with the idea of increasing profit for cable operators.”

OpenVault will collect customers’ usage behaviors, reporting back every 15 minutes how much bandwidth each customer is using, as well as enforcing cable company policies to automatically slow down “abusers” who are sending and receiving more than their fair share of data. Enforced network management, built into the platform, can automatically punish customers based on violations of the ISP’s Acceptable Use Policies. Usage violators are then reported to the cable operator, targeted for future marketing campaigns to upgrade their service to a more expensive tier to avoid further time-outs on the internet slow lane.

The technology is cheap to deploy, relying on a set of command lines inserted into cable modem termination systems that collect Internet Protocol Detail Record data and send it on to OpenVault.

“We measure all that for the operators and then what our Revenue Accelerator product does is it helps them micro-target their upgrade candidates,” Trudeau said. “This can have just really massive impacts on their revenues, to be able to truly not just micro-target the upgrade candidates, but also provide their reps with the ammunition they need and the visibility they need into their customer’s behavior and into their homes so they can intelligently talk to a subscriber.”

OpenVault claims the implementation of usage based billing and data caps are immediate money-makers for operators, both from current customers forced to upgrade to avoid the cap and from overall usage billing that delivers an immediate payday to cable operators without having to invest in expensive upgrades or service improvements.

“In real-number terms, evidence shows an immediate return as some OpenVault customers have enjoyed as much as seven percent of subscribers upgrading their service within 90 days of usage based billing deployment,” the company wrote on its blog. “For some operators, this translates into increased ARPU (average revenue per unit) of over $5 per subscriber per month. OpenVault customers that have deployed usage based billing have experienced increased ARPU ranging from $1.50 up to $12 per subscriber per month.”

Search This Site:

Contributions:

Recent Comments:

  • Dylan: Look at their prices. Absolutely ludicrous compared to many companies, especially Charter Spectrum. I pay $60 a month for 100/10 with unlimited data. ...
  • Paul Houle: For a long time communities have been frustrated in that they don't have any power to negotiate with cable companies. This town refused to enter into...
  • Ian S Littman: To be fair, you aren't wrong. Spectrum likely knows it won't have any competition for years in Lamar, so they'll quickly get take rates of >70% (re...
  • Ian S Littman: Are you in an area that can even get Spectrum service? Because in areas where they actually have to compete, they're actually pretty decent now. Yes,...
  • Ian S Littman: A more odd entry in that list is Chattanooga. The entire area has FTTH via EPB. Yet apparently folks can't swing the $57/mo starting price for 100 Mbp...
  • Ian S Littman: The issue here is that the NY PSC's threats have no teeth because, well, who will take over the cable systems if Spectrum is forced to sell? Either Al...
  • Bill Callahan: Phil, National Digital Inclusion Alliance just published interactive Census tract maps for the entire US based on the same ACS data. Two datapoints a...
  • Carl Moore: The idiots that run the cable companies must be also using drugs...a lot of people are cutting their cable services because of the higher rate and inc...
  • EJ: This will require a New Deal approach. Municipals need the ability to either be granted money or loaned money for broadband expansion. Until this is d...
  • Bob: I also got $1 increase for my 100/10 internet from Spectrum. A rep said it's for the speed increase that's coming in 2019. I complained that I was pro...
  • EJ: It makes sense to focus on wireless considering the government contract they have. The strange thing is they referenced fixed wireless in this article...
  • nick: Interesting how they conveniently leave out (Spectrum TV Choice) streaming service which is also $30/mo ($25/mo for the first 2 years)....

Your Account: