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Broadband Excitement Continues in Western Mass.; Big Support for WiredWest

Phillip Dampier June 3, 2015 Broadband Speed, Community Networks, Consumer News, Editorial & Site News, Public Policy & Gov't, Rural Broadband, WiredWest, Wireless Broadband Comments Off on Broadband Excitement Continues in Western Mass.; Big Support for WiredWest
fiber wiredwest

WiredWest is a public co-op seeking to deliver fiber to the home broadband across western Massachusetts.

Despite the dreary drizzle, fog, and unseasonably cold weather that has plagued the northeast since last weekend, 191 residents of New Salem, Mass. crowded into a basement for the town’s annual meeting Monday night, largely with one issue in mind: better broadband.

A reporter from The Recorder noted Moderator Calvin Layton was surprised by the overwhelming vote for fiber broadband — 189 for and only one apparently against.

The town clerk for New Salem typically counts around 60 heads at such meetings, but this night was different because the community was voting to spend $1.5 million to bring broadband to a town completely ignored by Comcast and Verizon. That fact has hurt area property values and has challenged residents and business owners alike. The town is fed up with inaction by the state’s dominant phone and cable company, which has done nothing to expand access in western Massachusetts.

“Our goal is to make this broadband available to every house, not just the places that are easy to wire,” said MaryEllen Kennedy, the chair of the town’s Broadband Committee.

New Salem isn’t alone.

Monterey passed its own bond authorization with a vote of 130 to 19, becoming the 10th consecutive town to vote in favor of bringing 21st century broadband to the region. The community of Beckett followed a day later.

Phillip "There are no broadband magic ponies" Dampier

Phillip “There are no broadband magic ponies” Dampier

Residents in 16 of the 17 towns asked so far to authorize the borrowing necessary to cover their community’s share of the fiber to the home project have usually done so in overwhelming majorities. But it has not been all good news. The town of Montgomery in Hampden County voted down paying its share by just two votes. Supporters claim low voter turnout may have done the project in, at least for the time being. A call for a new vote is underway.

Perhaps the most contentious debate over WiredWest continues in the small community of Hawley, where one activist has organized opposition for the project based on its cost to the community of 347. Hawley is in the difficult position of being a small community spread out across a lot of hills and hollows.  The cost for Hawley to participate in the fiber to the home project would be around $1 million, a figure many residents decided was out of their price range. Participation in WiredWest was shot down in a recent vote and the repercussions continue to this day in the opinion pages of The Recorder as residents fire back and forth at each other, sometimes with strident personal comments.

While easy to vote down participation in WiredWest, finding an alternative for Hawley has proved difficult.

Kirby “Lark” Thwing, a member of both the town finance and communications committees, is trying to find the cheaper broadband solution advocated by Hussain Hamdan, who has led the charge against WiredWest’s fiber to the home service in Hawley.

Thwing has run headfirst into what Stop the Cap! feared he would find — the rosy budget-minded alternatives suggested as tantalizingly within reach simply are not and come at a higher price tag than one might think.

Installing a Wi-Fi tower to bring wireless Internet access to a resort park.

Installing a Wi-Fi tower to bring wireless Internet access to a resort park.

Thwing is looking at a hybrid fiber/wireless solution involving a fiber trunk line run down two well-populated roads that could support fiber service for about half the homes in Hawley and lead to at least two large wireless towers that would reach most of the rest of town. He’s also hoping Hawley would still qualify to receive its $520,000 share of broadband grant money from the Massachusetts Broadband Institute to help cover the alternative project’s costs.

If Hawley can use that money, Thwing predicts it will cover much of the construction cost of the fiber trunk line. After that, each homeowner would be expected to pay to bring fiber from the trunk line to their home, definitely not a do-it-yourself project that will cost at least several hundred dollars, not counting the cost of any inside wiring and a network interface device attached to each participating home. Residents should also expect to spend another $100 on indoor electronics including a receiver and optional router to connect broadband to their home computer and other devices.

But the expenses don’t stop there.

Thwing also has to consider the cost of the wireless towers and provisioning a wireless service to Hawley residents not immediately adjacent to the fiber trunk line. He will be asking residents if they are willing to pay an extra $25-50 a month ($300-600 a year) to pay down the debt service on the town’s two proposed wireless towers. It isn’t known if that fee would include the price of the Internet service or just the infrastructure itself.

As Thwing himself recognizes, if the total cost for the alternative approaches the $1 million the town already rejected spending on fiber to the home service for everyone, it leaves Hawley no better off.

As Stop the Cap! reported last month, we believe Hawley will soon discover the costs of the alternatives Mr. Hamdan has suggested are greater than he suspects and do not include the cost of service, billing and support. Fiber to the home remains the best solution for Hawley and the rest of a region broadband forgot. Other towns that want to believe a cheaper alternative is out there waiting to be discovered should realize if such a solution did exist, private companies would have already jumped in to offer the service. They haven’t.

At the same time, we cannot ignore there are small communities in western Massachusetts that will find it a real burden to pay the infrastructure costs of a fiber network when there are fewer residents across wide distances to share the costs.

That is why it is critical for the Federal Communications Commission to expand rural broadband funding opportunities to subsidize the cost of constructing rural broadband services in communities like Hawley.

At the very least, state officials should consider creative solutions that either spread the cost of network construction out over a longer term or further subsidizing difficult to reach areas.

There is strong evidence voters across western Massachusetts are not looking for a government handout and have more than stepped up to pay their fair share to guarantee their digital future, but some challenges can be insurmountable without the kind of help the FCC already gives to private phone companies that spend the money on delivering dismally slow DSL service. Western Massachusetts has demonstrated it can get a bigger bang for the buck with fiber to the home service — a far better use of Connect America Funds than spending millions to bring 3Mbps DSL to the rural masses.

After Seeing Broadband-a-Plenty in Longmont, Fort Collins, Colorado Wants Public Broadband Too

nextlightIt’s an acute case of broadband envy.

Residents of Fort Collins, Colo., that have an excuse to take an hour’s drive south on U.S. Route 87 to visit Longmont and experience the Internet over the community’s public broadband service can’t believe their eyes. It’s so fast… and cheap. Back home it is a choice between Comcast and CenturyLink, and neither will win any popularity contests. While large parts of Colorado have gotten some upgrades out of Comcast, Fort Collins is one of the communities that typically gets the cable company’s attention last.

The city of Longmont took control of its digital destiny after years of anemic and expensive service from Comcast and CenturyLink. Longmont Power & Communications’ NextLight Internet service delivers gigabit fiber to the home service to the community of 90,000. The service was funded with a $40.3 million bond the city issued in 2014, to be paid back by NextLight customers, not taxpayers, over time. It remains a work in progress, but is expected to start construction to reach the last parts of Longmont by next spring.

chart memberNextLight delivers a mortal blow to competitors by charging a fair price for fast service. Instead of spending to upgrade their networks to compete, the incumbents demagogued the public project and Comcast spent $300,000 of its subscribers’ money in a campaign to kill the service before it even got started. Perhaps they had a right to be worried considering NextLight customers pay $49.95 a month for unlimited 1,000/1,000Mbps service. NextLight offers 20 times the download speed and 100 times the upload speed of Comcast’s Blast! package for nearly $30 less a month.

 

After NextLight was rated America’s fastest performing Internet service by Ookla in May, residents in Fort Collins began to wonder why they were still putting up with poor service from Comcast and lousy DSL from CenturyLink.

Fort Collins is about a one hour and fifteen minute drive north of Denver.

Fort Collins is about a one hour, fifteen minute drive north of Denver.

At the same time, city officials were doing their best to leverage some modest improvements from Comcast in return for a renewed franchise agreement. All they got was a vague commitment permitting the city to monitor Comcast’s notorious customer service and two HD channels set aside for Public, Educational, and Government use, along with a $20,000 grant to help the public access channel with online streaming.

The Coloradoan urged Fort Collins officials to think big and establish public fiber optic broadband in the city.

To manage this, they will have to overcome a 2005 state law backed by Comcast and Qwest (now CenturyLink) that bans municipal telecommunications services. A local vote or federal waiver can sidestep a law that was always designed to restrict competition and make life easier for the two telecom giants.

The newspaper opines that Fort Collins is in no way ready for the digital economy of the 21st century relying on Comcast and CenturyLink.

The cable company’s attention is focused on bigger cities in the state and CenturyLink remains hobbled by its copper legacy infrastructure. While some upgrades have been forthcoming, both Comcast and CenturyLink are also testing usage caps or usage-based billing — just another way to raise the price of the service. And speaking of service, neither Comcast or CenturyLink are answerable to the communities they serve – a community owned broadband alternative would be.

As the Coloradoan writes:

We’ve got to lay the groundwork now. Society took huge steps forward when automobiles replaced the horse and carriage. And no, installing municipal broadband isn’t adopting a new mode of transportation, but it is symbolic of laying an entirely new road.

Look at it another way. The city provides needed services such as water and electricity. Internet access is a needed service.

One thing Fort Collins doesn’t absolutely need Comcast or CenturyLink. But nobody is asking them to leave. They have a choice to use their massive buying power and resources to upgrade their networks to compete. But Fort Collins residents should not have to wait for that day to come when there is a better alternative in their grasp today: public broadband.

 

Competition Works: América Móvil Plans $50 Billion Fiber to the Home Network in Mexico

Phillip Dampier June 1, 2015 América Móvil, AT&T, Broadband Speed, Competition, Consumer News, Online Video, Wireless Broadband Comments Off on Competition Works: América Móvil Plans $50 Billion Fiber to the Home Network in Mexico

infinitum-telmexWith AT&T’s arrival in the Mexican wireless marketplace with its purchase of Iusacell and Nextel, América Móvil is responding with plans to build a new state-of-the-art $50 billion fiber-to-the-home network for Mexican consumers.

According to El Economista, América Móvil has a five-year plan to construct a 311,000 mile fiber network that will offer phone, broadband, and television service. The move comes in response to media reports AT&T is exploring delivering a video package over its acquired wireless networks within the next two years. The network will support broadband speeds that are faster than what most Americans along the border with Mexico can receive from AT&T and CenturyLink’s prevalent DSL services.

In comparison, U.S. phone companies like Verizon have stopped expanding its FiOS fiber to the home network and AT&T largely relies on a less-capable hybrid fiber/copper network for its U-verse service.

Competition in Mexico has forced providers to upgrade their networks to compete for customers while those in the United States tend to match each other’s prices or advocate for industry consolidation to maximize revenue and keep their costs as low as possible.

América Móvil’s broadband service Infinitum Telmex has already attracted 22.3 million broadband customers — a number likely to rise once it can enhance its online video streaming service Clarovideo.

Hong Kong Shakes Its Head At Telephone Companies Still Wasting Time & Money With Copper Wiring

hktHong Kong Telecom Group (HKT) chief technical officer Paul Berriman believes copper phone wiring is a thing of the past and is nonplussed by efforts to wring a few more years of life out of infrastructure that cannot reliably support high-speed Internet and is costly to maintain. The only solution that makes sense is to get rid of the copper and replace it with fiber optic wiring.

While America talks about 1Gbps limited rollouts, he is thinking about speeds ten times faster with his announcement Hong Kong Telecom is preparing to launch 10 gigabit service across the territory and was continuing its efforts to tear out obsolete copper wiring.

The man partly responsible for ensuring Hong Kong’s broadband future is a fast and reliable one says HKT has 1.6 million broadband customers — 530,000 on fiber to the home service and 200,000 on less-desirable VDSL2 with vectoring, which still relies in part on copper wiring. He is not happy with copper wiring’s performance and support costs and wants it out of his network. His minimum target speed is 100Mbps and if he finds a building that for any reason does not deliver more than 30Mbps at all times, he instructs engineers to immediately tear out the copper and replace it with fiber.

Berriman

Berriman

Overall, Hong Kong has an average Internet speed of 87 megabits per second, according to figures by Akamai. “Our (HKT) average is about 116Mbps,” he said. It is about to get much faster. The two major wired fiber competitors are HKT and HKBN and both compete fiercely for broadband customers.

HKT has three tiers of unlimited use fiber broadband (regular prices shown in U.S. dollars, prices lower for certain bundles and promotions):

  • 300/300Mbps for $64.21/mo;
  • 500/500Mbps for $77.10/mo;
  • 1000/1000Mbps for $90/mo.

When the 10Gbps upgrade is complete, HKT is likely to further boost speeds and/or cut prices.

Berriman acknowledges that the densely packed multi-dwelling apartments and condos common across Hong Kong makes large fiber projects less expensive than elsewhere in the world, but believes costs can be managed by deploying incremental upgrades. For example, HKT today has fiber extending into 85 percent of Hong Kong’s buildings and can connect fiber to 79 percent of homes in Hong Kong within three days of receiving an order.

Depending on a customer’s requirements, HKT can save money by serving DSL over short lengths of existing in-building copper wiring for customers not subscribed to ultra-fast broadband speed tiers. The length of wiring is short enough to guarantee speed is not affected for these customers. When customers do need the fastest speeds, fiber is strung directly to their apartment. Despite this, HKT is progressively migrating away from “fiber to the basement” to an all-fiber network to simplify its facilities and increase reliability, especially as the demand for faster speeds continues to grow.

“Once we get to 50 or 60 percent usage of the fiber in the building we start to look at converting the rest to get rid of the [older DSL] electronics,” Berriman said.

HKT also operates a mobile network it acquired from “Sunday” in 2006 and has also bought out Telstra’s share of the formerly joint owned CSL. The wireless company has a 31 percent market share and 4.6 million customers on two different networks — one supplied by ZTE and the other from Huawei. To supplement its wireless mobile network and offload traffic, HKT also operates 14,000 Wi-Fi hotspots across Hong Kong and is a leader in the use of EAP-SIM, which makes it easy for connections to be handed off between its mobile and Wi-Fi networks without interruption.

A Tale of Two Territories: Frontier Plans Upgrades for Newly Ex-Verizon/AT&T Customers While Legacy Areas Suffer

frontier-fast-buffalo-large-2The new CEO of Frontier Communications is promising more fiber to the home service and advanced ADSL2+ and VDSL2 service to dramatically boost Internet speeds… if you happen to live in a Verizon territory Frontier is planning to acquire in Texas, California, or Florida. For Connecticut customers that used to belong to AT&T, Frontier also plans to spend money to further build out AT&T’s U-verse platform to reach more suburban customers not deemed profitable enough to service by AT&T.

For legacy Frontier customers in other states? Frontier plans nothing beyond what it already provides — usually dismally slow DSL.

Speaking to investors during the JP Morgan Global Technology, Media and Telecom Conference, Frontier CEO Daniel McCarthy said upgrades offer the company new earnings opportunities, but a closer analysis reveals those benefits will only reach customers in areas where Verizon and AT&T already did most of the work and spent the money required to build advanced network infrastructure.

Verizon has spent millions upgrading customers in Texas to its FiOS service and has a significant fiber to the home presence in California and Florida. Because fiber infrastructure is already largely in place, Frontier will not have to spend huge sums to build a new network. Instead, it will spend incrementally to expand service to nearby service areas.

Mediocre broadband in upstate New York.

Mediocre broadband in upstate New York.

“The FiOS penetration is much higher, specifically in Texas, but we think there’s a lot of opportunity to drive FiOS penetration in Florida and California,” McCarthy said. “We see that as a big opportunity.”

Fierce Telecom notes Frontier won’t have to make a large investment outside of installing new DSLAMs in remote terminals or local Central Offices to deliver higher speeds over copper. Frontier will likely depend on VDSL2 technology on short copper line lengths in suburban areas and ADSL2+ in rural locations.

“I think in this case it might be replacing some electronics, but it’s not a heavy lift from a construction perspective,” McCarthy said. “By putting in a shelf and next-generation capabilities, whether it’s VDSL, ADSL2+, or all the different flavors you can use to serve the different loop lengths in a market you achieve the ability to bring a fresh product set into an area at a fairly low cost.”

While Frontier is willing to invest money in areas that are easy to upgrade, it has proven itself reluctant to consider major upgrades in its legacy service areas where it acquired traditional copper-based landline networks.

“The new states will clearly have new growth opportunities,” McCarthy said. “In Florida there has been a revival of housing in certain areas and subdivision growth in Texas and California.”

In Connecticut, Frontier will build on the acquired AT&T fiber/copper network with a modest expansion of U-verse.

frontier u-verse“We actually see growth opportunity in Connecticut,” McCarthy said. “As we go through and look at the Connecticut property, one of the things that have been a recent development from a technology perspective allows us to serve lower density parts of the state of Connecticut with U-verse product that was limited by densities and loop lengths in the past.”

Although the company often touts millions in upgrade investments, most legacy service areas see only modest service improvements, while the company continues to score very poor in customer satisfaction, especially in states like West Virginia, Ohio, Pennsylvania and New York. With Frontier’s ongoing focus on newly acquired service areas, long-standing customers in other states are feeling neglected.

In upstate New York, the prevalence of Frontier Communications’ low speed DSL on the company’s legacy copper network has dragged down overall broadband speed ratings to some of the lowest in the country. Frontier territory Rochester, N.Y., in particular, is now among the worst cities in the northeast for overall broadband speed performance, now rated at just 21.42Mbps. The national average is 36.22Mbps. In comparison, Buffalo scores 24.31Mbps, Cleveland: 22.57Mbps, and NYC 55.56Mbps.

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