AT&T and Comcast have successfully delayed Google Fiber’s expansion around the country long enough to finish upgrades that can nearly match the upstart’s speedy internet service.

Nearly four years after Google Fiber announced it would offer gigabit speed in Nashville, most residents still have no idea when they will be able to have the service installed. Although officially announced in January 2015, Google has only managed to connect 52 apartment buildings and a limited number of single family homes in parts of Charlotte Park, Edgehill, Sylvan Heights, Sylvan Park, East and North Nashville, and Burton Hills. In all, less than 30% of the homes originally promised service actually have it, forcing Google to seek an extension from the Tennessee Public Utilities Board, which was granted last week.

Google’s problems originate within itself and its competitors. The company’s contractors have been criticized for damaging existing wiring, tearing up streets and yards, piercing water pipes causing significant water damage, and inappropriate microtrenching, which caused some of its fiber infrastructure in Nashville to be torn out of the ground by road repair crews.

But the biggest impediment keeping Google from moving faster is its two competitors — AT&T and Comcast, successfully collaborating to stall Google, giving the phone and cable company plenty of time to improve services to better compete. Both companies have also aggressively protected their customers from being poached by offering rock bottom-priced retention plans that some claim are only available in Google Fiber-ready areas.

“It’s still complicated,” Nashville Google Fiber Manager Martha Ivester told the Tennessean newspaper. “Building this fiber optic network throughout the whole city is a long process, and we never expected it wouldn’t be a long process. Obviously, we have had our challenges here.”

WZTV Nashville reports East Nashville residents were upset over road work related to Google Fiber that lasted for months, severely restricting residential parking. (2:37)

Google Fiber Huts – Nashville, Tenn.

Google’s ability to expand has been restrained for years, despite an informal alliance with city officials, primarily over pole attachment issues. Much of middle Tennessee is challenged by a difficult-to-penetrate layer of limestone close to the surface, making underground utility service difficult and expensive. Google’s negotiations with Nashville Electric Service (NES), which owns 80% of the utility poles in Nashville and AT&T, which owns the remaining 20%, have been long and contentious at times. To bring Google Fiber to a neighborhood, existing wires on utility poles have to be moved closer together to make room for Google Fiber. In real terms, that has taken several months, as AT&T and Comcast independently move at their own pace to relocate their respective lines.

An effort to use independent contractors to move all lines in unison — known as “One Touch Make Ready,” was fiercely opposed by AT&T and Comcast, claiming it would violate contracts with existing workers and could pose safety issues, despite the fact both companies use independent contractors themselves to manage wiring. Both companies successfully challenged One Touch Make Ready in court. A federal judge ruled that only the FCC could regulate poles owned by AT&T, while another judge ruled the city had no authority to order the municipally owned electric company to comply with One Touch Make Ready.

In August, the FCC issued an order allowing One Touch Make Ready to apply to AT&T’s poles, but NES still refuses to change its policy of relocating service lines one line at a time. The electric utility did not explain its reasons. AT&T also recently eased its position on One Touch Make Ready, but with NES still stonewalling, Google Fiber’s delays are likely to continue.

AT&T Fiber is being embraced by some customers tired of waiting for Google Fiber.

In the interim, both AT&T and Comcast have upgraded their respective systems. AT&T Fiber offers a fiber-to-the-home connection available in some areas while Comcast offers near-gigabit download speeds over its existing Hybrid Fiber-Coax (HFC) network. The upgrades have taken the wind out of Google Fiber for some tired of waiting.

Google has recently tried to speed progress using underground “shallow trenching” for installation, which buries cable as little as four inches deep. The company has amassed more than 24,000 permits to lay fiber under roads and yards in Nashville, which may speed some deployment, but for some it is too little, too late.

“It has been more than a year since we expected Google Fiber to serve us and they won’t tell us when they will get here, so I gave up and signed a two-year contract for AT&T Fiber service instead,” said Drew Miller. “Google Fiber just isn’t as exciting as it was when it was announced because other providers have similar service now and I get a better deal bundling it with my AT&T cellphone service.”

Attitudes like that obviously concern Google, as have reports that customers in Google Fiber-ready neighborhoods are getting very aggressively priced retention offers if they stay with their current provider.

“Comcast cut my bill from close to $200 to around $125 if I did not switch,” said Stop the Cap! reader Olivia. “I also got double internet speed. I don’t need a gigabit, so I stayed with Comcast. If I get close to their usage limit I will switch to Google then.”

Olivia notes her mother had exactly the same services from Comcast, but Comcast would not offer her the same promotion because she lived in an area not yet wired for Google Fiber.

With upgrades and aggressive customer retentions, the longer Google takes to string fiber, the fewer customers are likely to switch for what was originally “game-changing” internet speeds and service.

WTVF Nashville shows off Google’s microtrenching, burying fiber optic cables just a few inches underground. (2:36)

Pricing Comparisons

Google Fiber

• Fiber 100: $50 a month, internet speeds up to 100 Mbps
• Fiber 1000: $70 a month, internet speeds up to 1,000 Mbps, downloads and uploads
• Fiber 100 + TV: $140 a month, internet speeds up to 100 Mbps, 155+ channels, premium channels (HBO, Showtime) available
• Fiber 1000 + TV: $160 a month, internet speeds up to 1,000 Mbps, 155+ channels, premium channels (HBO, Showtime) available

AT&T

• Internet-only: $50 a month for first 12 months, then $60 thereafter. $99 installation fee. Unlimited data costs an extra $30 a month. Early termination fee: $180 (pro-rated). Speeds range from 10 to 100 Mbps
• Direct TV + Internet: $75/mo first 12 months, then $121. Customers pay a $35 activation fee and $30 a month for unlimited data. 155 channels. Speeds vary. 24 month contract required.
• Internet 1000: $90 a month during first 12 months, then $100/mo thereafter. Bundled discount can reduce cost of package to $80-90. Up to 960 Mbps downloads. Early termination fee: $180 (pro-rated).

Comcast

• Performance Starter: $20 a month, increases to $50 after two-year promotion. Up to 25 Mbps.
• Blast!: $45 a month, increases to $80 a month after two-year promotion. 150 Mbps.
• Gigabit (DOCSIS 3.1): $70 a month, increased to $140 after two-year promotion. 940/35 Mbps.

WSMV Nashville reports Google’s microtrenching has been problematic as road crews unintentionally dig up Google’s optical fiber cables mistakenly buried just two inches underground. (2:44)

Google may be considering renewing expansion of its fiber to the home networks with a new technology that can extend network distances and cut costs.

Telecompetitor reports Google’s “SuperPON” architecture can support up to 1,024 customers over a distance of as much as 50 kilometers, dramatically reducing the costs to lay fiber and build central switching offices to manage connections across a metro area.

Current passive optical networks (PON) can support only 64 customers over a distance of up to 20 kilometers, which means companies have to lay cables with a larger bundle of optical fibers and construct as many as 16 central offices in each metro area to support its operations. If Google can manage to reduce the size of the cable, as it can using SuperPON technology, the company can bury fiber cables using microtrenching, which costs much less than traditional buried conduit.

As a result of improved amplification technology, Google can reach many more customers over a much larger distance using a            single strand of fiber, and offer each customer as much as 10 Gbps broadband. The SuperPON technology appears to be based on Google’s Go-Long network concept, introduced in 2017.

Claudio DeSanti, an architect for Google, told an audience at the Adtran Connect conference that Google has already deployed its SuperPON technology in one unspecified Google Fiber market, and the cost savings achieved could allow Google to return to fiber broadband buildouts. Google effectively paused its fiber expansion effort in late 2016 after examining the costs and the competitive impact of cable and phone company incumbents upgrading their own services to compete with Google. To be economically feasible, a new entrant must capture a certain percentage of market share to pay off network construction costs and be seen as economically viable. Google can either grow market share or reduce the costs of network construction to keep Google Fiber tenable.

DeSanti claims reducing cable size is not only less costly, it also results in higher reliability and an easier ability to repair damaged cables. Construction and labor expenses would also be slashed because Google’s SuperPON technology only needs an average of three central offices in a metro area, down from 16 or more using traditional PON technology. DeSanti hopes the SuperPON architecture will become an industry standard, which would reduce costs further through mass production of cables and construction equipment.

After Google pulled back from its fiber expansion project, the company turned towards fixed wireless services in urban areas and multi-dwelling units, which is ongoing.

YouTube TV customers attracted by unlimited storage DVR service are now discovering their recorded shows have been temporarily replaced with an on-demand version loaded with unskippable advertising.

In late April, YouTube TV dramatically increased the number of shows that cannot be viewed using DVR service. Instead, viewers are pointed to the on-demand version instead, even when a customer records the show using YouTube’s unlimited storage DVR service. Some customers who pay $40 a month for YouTube TV don’t appreciate what they consider a “bait and switch” DVR that raids their library of recorded shows and puts them off-limits in favor of an alternative version littered with ads one cannot skip.

Customers may not have noticed the gradual increase in the number of ads-included, on-demand shows until recently when YouTube TV started restricting the option of watching an ad-skippable DVR recording instead. Now it is the on-demand (VoD) version or nothing in many cases, at least for the first month or so after a show airs.

“I never had trouble watching DVR versions of programs from NBC, USA, FX, FOX, etc. several days — if not weeks — after recording them. Even if there was a VoD version available,” noted Daw Johnson. “As of last week, the service has completely changed. Roughly 16 hours after the program airs live, you completely lose access to recordings on shows from any of those networks. You’re 100% forced to watch the VoD version (with ads).”

How YouTube TV is marketed.

Each network seems to handle advertising differently. CBS is notorious for loading as many as 20 ads per hour, while some shows on ABC don’t include any ads at all. Some ads are 15 seconds long, others — especially pushing prescription drugs, can run much longer.

Some customers feel YouTube TV has misled them about its DVR service, noting it was sold as an unlimited service:

You can record as many programs as you want at the same time, without ever running out of storage space. We’ll even keep each recording for 9 months. Stream from your library anywhere in the U.S.

But in reality, because of YouTube’s own desire to increase advertising revenue and thanks to agreements with certain programmers, DVR service is becoming more restricted on current shows, and a growing number of older titles airing on cable networks are likely to see mandatory ads creep in as well as YouTube starts selling ad time itself.

“Many networks provide recent episodes of shows, movies, and more on demand. If you’ve recorded a program that’s available on demand at the time you’re watching, in some cases the on demand version will be played back instead of your recording. You typically cannot fast-forward through video on demand ads,” the company explained.

This week, YouTube unveiled a brand new effort to integrate the Google video ads platform into the YouTube TV experience, opening up plenty of new advertising opportunities for companies that want to target YouTube TV customers and be assured viewers cannot fast forward past their ads.

Now Google’s advertisers can target video ads at YouTube TV customers.

“Content from some cable networks in the U.S. will be part of Google Preferred lineups so that brands can continue to engage their audience across all platforms,” said Debbie Weinstein, managing director of YouTube/Video Global Solutions. “This means advertisers will be able to get both the most popular YouTube content and traditional TV content in a single campaign – plus, we’ll dynamically insert these ads, giving advertisers the ability to show relevant ads to the right audiences, rather than just showing everyone the same ad as they might on traditional TV.”

That is likely to mean an exponential increase in GEICO ads.

None of this should be a surprise, if subscribers reviewed the terms and conditions of service when they signed up. In March, 2017, we warned would-be customers the service would insert forced advertising into the DVR experience. YouTube TV isn’t likely to be the only streaming service that will start pushing mandatory advertising into DVR recordings. TV executives want to establish a precedent for forced advertising on the cord-cutting streaming marketplace.

“While it isn’t possible to put the DVR genie back in the bottle for traditional cable customers, TV networks are hopeful they can train viewers to expect ads at least in on-demand, current-season shows they stream,” reported the Wall Street Journal in 2017.

After spending millions to kill net neutrality, AT&T today called on Congress to pass a new national law protecting AT&T’s idea of a free and open internet by regulating internet websites like Facebook, Google, and Amazon.

Full page newspaper ads taken out in several nationally known newspapers proclaimed AT&T CEO Randall Stephenson’s support for the first “Internet Bill of Rights,” conceived by some of the same lawyers and lobbyists AT&T paid to destroy the FCC’s net neutrality rules put into effect during the Obama Administration.

“Congressional action is needed to establish an ‘Internet Bill of Rights’ that applies to all internet companies and guarantees neutrality, transparency, openness, non-discrimination and privacy protection for all internet users,” Stephenson wrote in the ad.

AT&T’s proposal would attempt to include content regulation of websites under the guise of fairness, claiming that while internet service providers are expected to treat all content fairly, large websites like Google and Facebook currently do not. Critics of AT&T’s proposal call that a distraction that has nothing to do with ISPs seeking the right to establish paid internet fast lanes and favoring partnered websites with exemptions from data caps or speed throttles.

AT&T doesn’t inform readers of its own complicity in the “confusion” over net neutrality policies that have faced constant legal and political challenges from AT&T and other telecom companies. The telecom industry has furiously lobbied Congress and regulators to keep net neutrality from taking effect. Once it did, AT&T took the FCC to court to overturn the rules.

AT&T wants their own law for their own version of net neutrality.

AT&T’s campaign comes with some urgency as the company works to block states from enacting their own net neutrality laws to replace the rules abandoned by the Republican majority controlling the FCC. Despite assurances from FCC chairman Ajit Pai that the Commission would sue to pre-empt any state law that would re-establish net neutrality, AT&T and other large cable and phone companies prefer the regulatory certainty available from the quick passage of a federal law that would establish AT&T’s definition of net neutrality indefinitely. AT&T is also trying to rush passage with support from Republican congressional majorities and President Trump before the midterm elections threaten a Democratic takeover of the House, Senate, or both.

AT&T attempted to assuage customers of its good intentions by claiming it doesn’t block websites.

“We don’t censor online content. And we don’t throttle, discriminate, or degrade network performance based on content, period,” AT&T wrote (emphasis ours). But that claim opens the door to important loopholes:

1. Speed throttles, data caps, and zero rating do not impact network performance. They impact your ability to equally access internet content, something AT&T does not promise here.
2. AT&T only claims it won’t interfere with websites based on their content, but that was never the premise ISPs have used to demand additional payments from content creators. It isn’t the content ISPs are concerned with — it is the traffic those websites generate and, in the eyes of many net neutrality supporters, whether those websites compete with an ISPs own offerings. AT&T could have said it doesn’t throttle, discriminate, or degrade websites, period. But it didn’t.

AT&T alarmingly suggests that without predictable rules, next generation applications like virtual reality, telemedicine, and the Internet of Things will be threatened. Except that is not the message AT&T gives shareholders, arguing AT&T has robust capacity both now and into the future for next generation applications. AT&T has long promoted how lucrative it expects the Internet of Things marketplace will be.

Allowing the telecom industry to write its own “Internet Bill of Rights” met with harsh criticism from the consumer groups AT&T claims it wants to enlist in its efforts.

“Zero real net neutrality supporters are fooled by this,” wrote Fight for the Future executive director Evan Greer. “We had an Internet Bill of Rights. It was called Title II and AT&T’s army of lobbyists did everything in their power to burn it down.”

“AT&T’s hypocrisy knows no bounds,” said Free Press policy director Matt Wood. “Its phony bill of rights argument makes no sense based on the law, the policies, or the politics in play. AT&T’s head fake towards one-size-fits-all rules for all websites and content providers should fool no one. As soon as AT&T wants to stop lobbying against net neutrality, broadband privacy, and the other rights it has worked to kill at the Trump FCC and in this Congress, maybe people will stop laughing at desperate tactics like this. For now, all we can do is point out the company’s audacity in pretending that this hyper-partisan Congress can step in to fill the void of the net neutrality repeal by writing a new law tailor-made for AT&T.”

News that Google is dropping support for YouTube on Amazon-branded set-top boxes, personal assistants, and set-top boxes is being used by anti-Net Neutrality forces to claim those two companies are a much bigger problems for Net Neutrality than cable and phone companies.

Google will make YouTube unavailable to Amazon device owners on Jan. 1, 2018, with the suggestion the company might change its mind if Amazon agrees to carry Chromecast and Google Home devices on its website and support casting Prime Video.

The last straw may have been Amazon’s decision to drop some of Nest’s newest products last month. Nest is owned by Google.

“Given this lack of reciprocity, we are no longer supporting YouTube on Echo Show and FireTV,” said a Google spokesperson to Multichannel News. “We hope we can reach an agreement to resolve these issues soon.”

“Echo Show and Fire TV now display a standard web view of YouTube.com and point customers directly to YouTube’s existing website,” Amazon responded in a statement. “Google is setting a disappointing precedent by selectively blocking customer access to an open website. We hope to resolve this with Google as soon as possible.”

The dispute was welcomed by anti Net Neutrality forces, who proclaimed consumers were the victims of Amazon.com and Google, not AT&T, Comcast, and other large telecom companies.

#Google and #Amazon are blocking their customers from getting what they want on the Internet the way they want it, yet claim to be #NetNeutrality purists. nothing neutral about Google and Amazon’s behavior here… #HypocrisyMuch https://t.co/pWmQYgAMTy

— Scott Cleland (@SCleland) December 5, 2017

USTelecom, a group sponsored by the nation’s biggest telephone companies, also pounced on the dispute. CEO Jonathan Spalter:

“Broadband ISPs are committed to providing an open internet for their customers, including protections like no content blocking or throttling,” he said. “Seems like some of the biggest internet companies can’t say the same. Ironic, isn’t it?”

(Headline corrected. Thanks to Morgan Wick.)