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New York’s Rural Broadband Program Betrays Tens of Thousands of Rural Residents

For 76,783 homes and businesses in upstate New York, the future of internet access will be a satellite dish and as little as a 20 GB data allowance per month, courtesy of the New York State Broadband Program Office’s decision to partner with HughesNet, a satellite internet provider, instead of finding a provider willing to extend wired internet access to every New Yorker.

HughesNet Satellite “Fraudband”

For town supervisors and village mayors up and down the state, relying on HughesNet is nothing short of breaking Gov. Andrew Cuomo’s promise to bring broadband service to every New York resident.

Lewis town supervisor James Monty called HughesNet and other satellite internet providers “a dead end.”

“HughesNet is not broadband,” Monty said. “I just think it’s a gross waste of public funds to use something that isn’t going to work.”

Rural residents strongly agree, if only because many of them have directly experienced the pain and frustration of satellite internet in the past.

Bethel resident Susan Harte has two words to describe the kind of service HughesNet has provided since it launched its first satellite: “it stinks.”

She isn’t pleased the governor is walking away from rural New Yorkers.

“Definitely broken promises there,” Harte says.

In the North Country, Willsboro town supervisor Shaun Gillilland believes the issue is personal between the governor and his constituents.

“The state made a promise and you’re all here expecting them to carry through on that promise, and I think what we’re finding is that that promise is falling very short,” Gillilland said.

Further west, some residents in Niagara County, near Niagara Falls, are preparing to abandon their homes and move out of state to find internet service and a state government less beholden to corporate interests.

One resident of Middleport tells Stop the Cap! “I’m in a state of disbelief that we are going to actually pull the kids from school and move. We don’t have anymore years to wait. We need internet.”

This particular resident has called out state and elected officials for months on social media to draw attention to the reality rural New Yorkers are going to be stuck with awful internet access for years, while Gov. Cuomo takes credit for a program he will claim is a success story.

A 20 GB Data Cap

HughesNet plans for New York customers at designated addresses for New York’s rural broadband program top out with a 20 GB data cap.

HughesNet appears to be ready to take $15,620,785 from New York and $13,720,697 in private and federal funds and leave residents with internet service even worse than they offer many of their regular customers.

“I’ve already been told by an insider [the only significant benefit New York is getting] is $200 off installation,” the Middleport resident tells us. “The service is exactly the same as ordinary HughesNet except NY Broadband Program Office recipients will have a 20 GB data cap instead of the 50 GB data cap offered elsewhere.”

Susan Potter, who lacks internet access to her home near Watertown, thinks there is a scam afoot.

“Why is New York giving HughesNet $15 million dollars for internet service that any New York resident could order themselves today?” she asked Stop the Cap! “Where is the money going and how exactly will it benefit New York residents? Except for a much smaller and completely inadequate data cap, I cannot find a single thing HughesNet is doing for New York except taking the government’s money for substandard internet access and giving us a break on a satellite dish that can already be discounted from promotions.”

HughesNet’s own website tells an interesting story. Residents who enter an address designated to receive satellite internet by New York are offered just two plans — 10 GB and 20 GB per month (with a 24-month term commitment). Outside of those areas, HughesNet offers up to four plans — 10, 20, 30 and 50 GB allowances per month (with the same two-year term commitment). HughesNet promises “up to 25 Mbps” but disclaims any responsibility if it fails to meet that speed.

“NYBPO officials cannot seem to understand that the technology has limitations and that they can’t offer unlimited data,” the Middleport resident and Stop the Cap! reader added.

Few Albany residents working for the state government have to contend with no internet options, and wired internet plans in New York remain uncapped with no data allowances, which may mean some public officials have yet to grasp the implications of a 20GB data cap, less than what wireless phone companies offer state residents with unlimited data plans. The average home broadband user now consumes an average of 190 GB of data per month, which means HughesNet’s offer is for strictly rationed internet access.

HughesNet plans in parts of North Carolina offer up to 50GB of access.

Back in Lewis, Michael Hopmeier, president of Unconventional Concepts, which provides engineering consultancy services, told the Adirondack Daily Enterprise he openly fears New York’s broadband future has been left in the hands of unqualified bureaucrats running the state’s broadband office:

“I found as an engineer and a person with a background in communications and testing evaluation, that the information that they were providing was completely unrefined,” Hopmeier said. “We were getting broad, vague numbers like ‘99 percent coverage.’”

He said he compiled a list of questions: 99 percent coverage of what? What exactly did they mean by “broadband?” Why were the contracts issued to the companies that they were? Then he and the supervisors filed a Freedom of Information Law request to the state for answers.

“The gist of the responses we received was either no answer, ‘We won’t answer that,’ or the answers made very little sense,” Hopmeier said.

With tens of millions of state taxpayer dollars on the table, Hopmeier worries the state is going to waste a huge amount of money on an unworkable solution for rural New Yorkers.

“My concerns boil down to: one, ‘How are they measuring what they are doing? Two, is there an audit going on? Is there an attempt to review and determine whether those standards and goals are actually being met? And then three, what actions will actually be taken to correct any problems if we can find them,” Hopmeier said.

He has experience using HughesNet himself, and as a result of what he calls “totally technically unacceptable” internet service, he is now sending work out of state to Virginia and Florida, where broadband service is better.

Two hours north of New York City, it is not difficult to find a broadband desert. Steve Israel, writing for the Times Herald-Record, notes Sullivan County communities like Bethel, Callicoon and Delaware, along with Ulster County towns like Marbletown and Rochester are going to be stuck with fixed wireless at 2 Mbps, HughesNet at 15 Mbps (assuming it isn’t congested that day) or for a precious few — Charter Spectrum, which is rebuilding its rural cable systems to support faster internet speeds. For others, DSL from Verizon claims to offer up to 15 Mbps, but few admit to getting service anywhere close to that speed. All of these rosy speed predictions come from the state, but residents on the ground know better.

“Thousands of folks will be left without the high-speed internet Cuomo promised,” Israel wrote.

Frontier’s Internet Nightmares – “They Talk a Lot and Don’t Accomplish Much”

HughesNet isn’t the only provider attracting crowds armed with pitchforks and torches. Frontier Communications, which was recently awarded $9.7 million to extend DSL service to 2,735 more rural customers in the Finger Lakes, Southern Tier and North Country, attracts scorn from its existing customers.

“There is a special place in hell reserved for Frontier’s despicable DSL service,” scowled Lillian Weber.

“Disgustingly inadequate,” fumed Wilmington resident Bob Rose, who has been at war with Frontier for months about slow or intermittent service.

“It’s like not having internet access at all — dial-up used to be faster,” added John Schneider, another unsatisfied customer.

Weber holds the record among her neighbors for the longest delay for a Frontier repair crew to show up — eight weeks, resulting from three “missed” appointments.

“They rarely bother to show up and once claimed they were here but nobody answered the door, despite the fact we spent all day on the porch staring at the driveway,” Weber. “They are even bad at lying.”

Last winter, Wilmington residents found several examples of neglected Frontier lines under pressure from overgrown tree limbs and branches. (Image courtesy: The Sun)

Rose is never sure if Frontier’s repair crews will turn up at his home either when his internet service fails, which is often.

“If I’m lucky, we have an internet connection 60 percent of the time,” Rose told The Sun. “We’ve been frustrated as hell over here, a lot of calls. We might have 1 in 10 days where we have internet all day.”

Frontier says Rose lives in a troubled, “high volume area.” Rose says his entire neighborhood has three or four homes. He now never leaves home without his Wi-Fi hotspot, because it is often the only way to stay connected.

Rose can point to at least one visible problem he saw last winter around his neighborhood. Frontier is simply not taking care of its network.

“It’s unbelievable,” he said. “Tree limbs, heavy with snow, laying right on the cable. They need to trim those trees.”

Local government officials also hear often about Frontier. Essex County Board of Supervisors chairman Randy Preston is one of them.

“Every other week, I get a complaint about Frontier,” he said. He has personally filed a complaint with the state’s attorney general and is sending a call-out to all Frontier customers dissatisfied with their internet service to do the same. He does not believe Frontier deserves a penny of state money, and the company should return what it has already received.

Essex County Board of Supervisors chairman Randy Prestonon Frontier: “They talk a lot and don’t accomplish much.”

“As far as I’m concerned, they haven’t met their commitment,” Preston told The Sun. “The grants should be pulled from them, and they should be fined. They aren’t living up to their commitment, and I don’t think that should be allowed.”

After years of dealing with Frontier, Preston has a saying about the phone company: “They talk a lot and don’t accomplish much.”

The requirements of the current round of broadband funding require participants to offer customers 100 Mbps of service, something a Frontier spokesperson confirmed.

“In general, the program requires projects to have speed capability of 100 Mbps. The Frontier projects will satisfy this requirement of the program,” the spokesperson said.

That will likely require the phone company to bring fiber to the home service to the 2,735 customers to be served. Current customers will believe it when they see it. It is also clear that existing customers will not be so lucky. When asked directly if Frontier will upgrade to fiber-fast internet speeds elsewhere in New York, Frontier Communications manager Andy Malinoski kept his answer to The Sun vague.

“Frontier is constantly investing in, expanding and improving our network as we continue to improve our customer experience in New York and across the United States,” Malinoski said. “The NY Broadband Program is one tactic we are implementing in certain communities to achieve those goals.”

The NY Public Service Commission urges New Yorkers with Frontier DSL problems to complain directly to them.

“If it were to receive a consumer complaint, PSC staff would work to resolve the issue, including bringing in other agencies if necessary,” said James Denn, a spokesman. “Going forward, all upstate New Yorkers will see dramatic improvements in service quality and availability as a result of Gov. Cuomo’s nation-leading investment program. As part of this effort, PSC staff will work closely with the NYBPO to ensure that companies receiving awards, including Frontier, provide good customer service.”

“That’s a hoot,” responded Weber. “They should spend a week with us and after that, if they are smart, they will throw Frontier out of New York right behind Charter.”

Altice Launches Optimum Fiber on Long Island; Gigabit Service $79.99/Month

Phillip Dampier September 11, 2018 Altice USA, Broadband Speed, Competition, Consumer News 2 Comments

Altice USA this week launched symmetrical gigabit broadband over its new fiber-to-the-home network in parts of Long Island.

The cable company, which acquired Cablevision a few years ago, is gradually mothballing its part-copper wire network and going all-fiber across its footprint in New York, New Jersey, and Connecticut. The fiber buildout will allow Altice to increase internet speeds and have more flexibility providing television, broadband, and phone service.

Where the fiber network has been switched on, customers are being offered 940/940 Mbps (near-gigabit) internet-only service at a price of $79.99 a month. Stop the Cap! has confirmed with our readers that parts of Central Islip now have gigabit fiber service available.

“Altice USA is focused on offering the best network and connectivity experience, and the activation of our full-fiber network with smart Wi-Fi, the most advanced of its kind in the nation, demonstrates our commitment to creating converged customer experiences,” said Hakim Boubazine, Altice USA co-president and chief operating officer. “Delivering our symmetrical Altice Gigabit fiber service is just the start as we continue to scale our fiber network to bring our customers up to 10 gigabit internet speeds to support the explosive growth of data usage while laying the groundwork for the future of the connected universe.”

The company is keeping its precise fiber rollout schedule a closely guarded secret, as it competes with Verizon FiOS across much of its service area. Because the fiber upgrade project will take five years to complete, existing customers still served by Optimum’s older HFC network will not have to wait to get speed increases thanks to DOCSIS 3.0. The company is introducing 400 Mbps speeds this year with gigabit service anticipated in early 2019. Altice will not deploy DOCSIS 3.1, preferring fiber to the home service as a better choice.

Fixed Wireless Not a Good Solution for Rural Areas; Usage Demand Outstrips Capacity

Morrow

Australia is learning a costly lesson finding ways to extend broadband service to rural areas in the country, choosing fixed wireless and satellite networks that will ultimately cost more than extending fiber optic broadband to rural customers.

Australia’s National Broadband Network (NBN) is tasked with supplying virtually all of Australia with internet access, using fiber/wired broadband in urban and suburban areas and fixed wireless and satellite internet access in the country’s most remote locations.

But just a few years after debuting satellite broadband and fixed LTE 4G wireless service in many parts of the country, demand has quickly begun to overwhelm capacity, forcing costly upgrades and punitive measures against so-called “heavy superusers.” The NBN has also scrapped plans to introduce higher-speed fixed wireless services, fearing it will only create additional demands on a network that was not envisioned to manage heavy broadband usage from video streaming.

NBN CEO Bill Morrow has elected to place most of the blame on his customers, specifically “superusers” that he characterized as “online gamers” who spend hours during the day and peak usage periods consuming large parts of the fixed wireless network’s available capacity.

“In the fixed wireless, there’s a large portion [of end users] that are using terabytes of data,” Morrow said. “We’re evaluating a form of fair use policy to say, ‘We would groom these extreme users.’ Now the grooming could be that, during the busy period of the day when these heavy users are impacting the majority, that they actually get throttled back to where they’re taking down what everybody else is taking down.”

Under the current NBN fair use policy, monthly downloads per household are capped at 400 GB, with maximum usage during peak usage periods limited to 150 GB a month, which is already significantly less than what most average American households consume each month. With expensive and unexpected early upgrades to more than 3,100 cell towers to manage rapidly growing usage, the cost of service is starting to rise substantially, even as usage limits and speed reductions make these networks less useful for consumers.

In areas where the NBN extends a fiber optic network, the fixed wholesale price for a 50/20 Mbps connection is $32.00 (U.S.) per month. (A 100/40 Mbps connection costs $46.25). For fixed wireless, prices are rising. A 50/20 Mbps fixed wireless connection (with usage cap) will now cost $46.25 a month.

Morrow took heat from members of Parliament over his claim that online gamers were chiefly responsible for slowing down the NBN’s fixed wireless network.

“With great respect to everything you said over the last 15 minutes, you have been saying to us the problem here is gamers,” said MP Stephen Jones (Whitlam).

Morrow clarified that online gamers were not the principal cause of congestion. The main issue is concurrency, which drags down network speeds when multiple family members unexpectedly use an internet connection at the same time. The worst congestion results when several family members launch internet video streams at the same time. Online video not only leads average users’ traffic, it can also quickly outstrip available cell tower capacity. High quality video streaming can quickly impact 4G LTE service during peak usage periods, driving speeds down for all users. The NBN now considers these newly revealed capacity constraints a limit on the feasibility of using wireless technology like LTE to supply internet access.

The current mitigation strategy includes limiting video bandwidth, discouraging video streaming with usage caps or speed throttles, capacity upgrades at cell towers, and public education requesting responsible usage during peak usage times. With capacity issues becoming more serious, Morrow canceled plans to upgrade fixed wireless to 100 Mbps speeds because of costs. The proposed upgrades would have cost “exponentially” more than wired internet access.

Hype vs. Reality: Most Australians reject fixed wireless and satellite internet as woefully inadequate. (Source: BIRRR)

Actual Fixed Wireless speeds

Actual Satellite Internet speeds

The concept of supplying fixed wireless or satellite internet access to rural areas may have made sense a decade ago, but there are growing questions about the suitability of this technology based on growth in consumer usage patterns, which increasingly includes streaming video. The cost to provide a sufficiently robust wireless network could easily rival or even outpace the costs of extending traditional fiber optic wired service to many rural properties currently considered cost prohibitive to serve. In Australia, fixed wireless and satellite has delivered sub-standard access for rural consumers, and requires the imposition of “fair usage” caps and speed throttles that inconvenience customers. For now, Morrow believes that is still the best solution, given that Australia’s national broadband plan relies heavily on wireless access in rural communities.

“[The benefit of a fair usage policy is] big enough to where if we did groom them during the busy time of the day, it would be a substantial [speed] lift for people,” he said. “I don’t think there’s a silver bullet in any of this – this is going to require us to think through a number of different areas.”

Better Internet for Rural, Regional and Rural Australia (a volunteer consumer group) shares horror stories about relying on satellite to solve rural broadband problems. (7:50)

 

Frontier’s New Ad Campaign Criticizes Slow Broadband, Like What It Offers Its Own Customers

With friends like these…

In an effort to attract new business, Frontier Communications has launched a new nationwide brand platform it claims will help customers “facing challenges and frustrations navigating today’s internet services market.”

The “Don’t Go it Alone” campaign advertises Frontier as your friend on the digital frontier.

In one ad, a balladeer laments customers trying to use a home internet connection that is too slow and unreliable to depend on for working from home. The ad shows customers flocking to nearby coffee shops “looking for bandwidth” they do not have at home.

While the ads claim Frontier’s FiOS network is faster than its competitor — Charter Spectrum, many Frontier customers living outside of a FiOS service area will likely find Frontier’s ads ironic. That is because Frontier has a poor track record achieving the promised speeds it advertises to its large base of DSL customers. The 2016 FCC Report, “Measuring Fixed Broadband” (the annual reports were discontinued by the Trump Administration’s FCC in early 2017), found Frontier a poor performer. Even its fiber network Frontier FiOS was measured losing ground in delivering advertised speeds and performance.

Minnesota Public Radio reports hundreds of complaints about Frontier Communications have prompted statewide public hearings about the company’s alleged poor performance. MPR shares the stories of two frustrated Frontier DSL customers paying for service they do not get. (3:28)

“Our internet here is horrible, our provider is Frontier,” Monica King Von Holtum of Worthington in southwest Minnesota, told Minnesota Public Radio. “It’s infuriating.”

Her service is so bad, she can tell if a neighbor starts using the internet or another family member starts browsing.

“If I’m literally the only person using the internet, it’s fine,” said King Von Holtum. “As soon as we have one or more people using different devices it just tanks and we can’t get anything done.”

She is hardly alone. In Minnesota, the Public Utility Commission has received more than 400 complaints and comments about Frontier’s frustrating performance. Customers report service interruptions lasting up to a week and internet speeds slower than dial-up.

One customer said Frontier lacks “common decency” because of the way it treats its customers, often stuck with only one choice for internet access in their rural service areas.

A speed test showing 0.4 Mbps from 2013 shows this is an ongoing problem.

King Von Houltum showed MPR the results of a speed test while being interviewed.

“We have 0.4 megabits per second,” said King Von Holtum, who pays Frontier for 6 Mbps service. “And our upload is pretty much nonexistent.”

Melody Webster’s family makes regular 5-mile trips into the town of Cannon Falls to use their local library’s Wi-Fi service. It is the only way her children can complete their school assignments, because Frontier’s DSL struggles to open web pages. Webster has called Frontier again and again about the speed problems, but told the public radio station she gets “lied to or pretty much laughed at.”

That’s a story Frontier’s balladeer is not likely to put to song.

Frontier spent an undisclosed amount hiring the ad agency responsible for the new advertising.

“A brand campaign must be creative and memorable. It also has to drive a client’s business forward,” said Lance Jensen, chief creative officer of Hill Holliday, which created the campaign. “The Balladeer is a fun and accessible character who brings humanity and humor to the frustrating experience of dealing with internet and TV service. We can’t wait to put him to work for the Frontier brand.”

The campaign launches this week in Frontier markets nationally and includes broadcast, radio, online video, out of home, digital and social components.

An “affable balladeer” sings about the frustrations of internet users who do not get the internet service they paid for, in this new 30-second ad from Frontier Communications. Ironically, slow speed is the most common complaint about Frontier’s own DSL service. (0:30)

Countries Moving at Light Speed to Expand Fiber, While U.S. Keeps Subsidizing DSL

This week, the FCC announced bidding has finished for the latest Connect America Fund (CAF) broadband subsidies auction.

Once again, the FCC gave first priority to incumbent phone companies to bid for the subsidies, which defray the cost of expanding internet access to homes and businesses otherwise unprofitable to serve. Nearly $2 billion was left on the table by disinterested phone companies after the first round of bidding was complete, so the FCC’s second round opened up the leftover money to other telecom companies.

Winning bidders will receive their portion of $198 million annually in 120 monthly installments over the next ten years to build out rural networks. In return, providers must promise to deliver one broadband and voice service product at rates comparable to what urban residents pay for service. The winning bids, still to be publicly announced, will come from rural electric and phone cooperatives, satellite internet providers, fixed wireless companies, and possibly a handful of cable operators. But much of the money overall will be spent by independent phone companies rolling out slow, copper-based, DSL service.

Because the total committed will take a decade to reach providers, rural Americans will likely face a long wait before what purports to be “broadband” actually reaches their homes and businesses.

While many co-ops will spend the money to expand their own homegrown fiber-to-the-home services, most for-profit providers will rely on wireless or copper networks to deliver service.

Telefónica Spain

Overseas, broadband expansion is headed in another direction — expansion of fiber-to-the-home service, with little interest in investing significant sums on furthering old technology copper wire based DSL and fixed wireless services. The expansion is moving so quickly, Verizon made certain to sign long-term contracts with optical fiber suppliers like Corning in 2017 to guarantee they will not be affected by expected shortages in optical fiber some providers are already starting to experience.

Virtually everywhere in developed countries (except the United States), fiber broadband is quickly crowding out other technologies, despite the significant cost of replacing copper networks with new optical fiber cables. If a provider is brave enough to discount investor demand for quick returns and staying away from big budget upgrade efforts, the rewards include happier customers and a clear path to increased revenue and business success.

Not every Wall Street bank is reluctant to support fiber upgrades. Credit Suisse sees a need for optical fiber today, not tomorrow among incumbent phone and cable companies.

“The cost of building fiber is less than the cost of not building fiber,” the bank advised its clients. The reason is protecting market share and revenue. Phone companies that refuse to upgrade or move at a snail’s pace to improve their broadband product (typically DSL offering 2-12 Mbps) have lost significant market share, and those losses are accelerating. Ditching copper also saves companies millions in maintenance and repair costs.

Canada’s Telus is a case in point. Its CEO, Darren Entwistle, reports Telus’ effort to expand fiber optics across its western Canada service area is already paying off.

“We see churn rates on fiber that are 25% lower than copper,” Entwistle said. “35% lower in high-speed internet access, and 15% lower on TV — 25% lower on average. We’re seeing a reduction in repair volumes to the tune of 40%. We’re seeing a nice improvement in revenue per home of close to 10%.”

Telus promotes its fiber to the home initiative in western Canada as a boost to medical care, education, the economy, and the Canadian communities it serves. (1:31)

Telus’ chief competitor is Shaw Communications, western Canada’s largest cable company. Fiber optics allows Telus to vastly expand internet speeds and reliability, an improvement over distance sensitive DSL. Shaw Cable has boosted its own broadband speeds and offers product bundles that have been largely responsible for Telus’ lost customers, until its fiber network was switched on.

In economically challenged regions, fiber optic expansion is also growing, despite the cost. In Spain, Telefónica already provides service to 20 million Spaniards, roughly 70% of the country, and plans to continue reaching an additional two million homes and businesses a year until the country is completely wired with optical fiber. In Brazil, seven million customers will have access to fiber to the home service this year, expanding to ten million by 2020.

Verizon and AT&T regularly ring alarm bells in Congress that China is outpacing the United States in 5G wireless development, but are strangely silent about China’s vast and fast expansion into fiber optic broadband that companies like Verizon stopped significantly expanding almost a decade ago. China already has 328 million homes and businesses wired for fiber and added another five million homes in the month of June alone. AT&T will take a year to bring the same number of its own customers to its fiber to the home network.

The three countries that are most closely aligned with the mentality of most U.S. providers — the United Kingdom, Australia, and Germany — are changing their collective minds about past arguments that fiber to the home service is too costly and isn’t necessary.

The government of Martin Turnbull’s cost concerns forced a modification of the ambitious proposal by the previous government to deploy fiber to the home service to most homes and businesses in the country. That decision to spend less is coming back to haunt the country after Anne Hurley, a former chief executive of the Communications Alliance involved in the National Broadband Network (NBN), admitted the cheaper NBN will face an expensive, large-scale replacement within a decade.

ABC Australia reports on findings that the country’s slimmed-down National Broadband Network is inadequate, and parts will have to be scrapped within 5-10 years (1:37)

Turnbull’s government advocated for less expensive fiber to the neighborhood technology that would still rely on a significant amount of copper wiring installed decades ago. The result, according to figures provided to a Senate committee, found only a quarter of Australians will be able to get 100 Mbps service from the NBN, with most getting top speeds between 25-50 Mbps.

Despite claims of technical advancements in DSL technology which have claimed dramatic speed improvements, Hurley was unimpressed with performance tests in the field and declared large swaths of the remaining copper network will have to be ripped up and replaced with optical fiber in just 5-10 years.

“If you look around the world other nations are not embracing fiber-to-the-[neighborhood] and copper … so yes, it’s all going to have to go and have to be replaced,” she said.

In the United Kingdom, austerity measures from a Conservative government and a reluctant phone company proved ruinous to the government’s promise to deliver “superfast broadband” (at least 24 Mbps) over a fiber to the neighborhood network critics called inadequate from the moment it was switched on in 2012. The government had no interest in financing a fiber to the home network across the UK, and BT Openreach saw little upside from spending billions upgrading the nation’s phone lines it now was responsible for maintaining as a spun-off entity from BT. In 2015, BT Openreach’s chief technology officer called fiber to the home service in Britain “impossible” and too expensive.

Two years later, while the rest of Europe was accelerating deployment of fiber to the home service, the government was embarrassed to report its broadband initiative was a flop in comparison, and broke a key promise made in 2012 that the UK would have the fastest broadband in Europe by 2015. Instead, the UK has dropped in global speed rankings, and is now in mediocre 35th place, behind the United States and over a dozen poorer members of the EU.

What was “impossible” two years ago is now essential today. The latest government commitment is to promote optical fiber broadband using a mix of targeted direct funding, “incentives” for private companies to wire fiber without the government’s help, and a voucher program defraying costs for enterprising villages and communities that develop their own innovative broadband enhancements. The best the government is willing to promise is that by 2033 — 15 years from now — every home in the UK will have fiber broadband.

Deutsche Telekom echoed BT Openreach with claims it was impossible to deliver fiber optic broadband throughout an entire country.

Deutsche Telekom’s dependence on broadband-enhancements-on-the-cheap — namely speed improvements by using vectoring and bonded DSL are increasingly unpopular for offering too little, too late in the country. Deutsche Telekom applauded itself for supplying more than 2.5 million new households with VDSL service in 2017, bringing the total number served by copper wire DSL in Germany to around 30 million. The company, which handles landline, broadband and wireless phone services, is slowly being dragged into fiber broadband expansion, but on a much smaller scale.

In March, Telekom announced a fiber to the home project in north-east Germany’s Western Pomerania/Rügen district for 40,000 homes and businesses. The network will offer speeds up to 1 Gbps. In July, Telekom was back with another announcement it was building a fiber optic network for Stuttgart and five surrounding districts Böblingen, Esslingen, Göppingen, Ludwigsburg, and Rems-Murr, encompassing 179 cities and municipalities. But most of the work will focus on wiring business parks. Residents will have a 50% chance of getting fiber to the home service by 2025, with the rest by 2030.

In contrast, the chances of getting fiber optic broadband in the U.S. is largely dependent on which provider(s) offer service. In the northeast, Verizon and Altice/Cablevision will go head to head competing with all-fiber networks. Customers serviced by AT&T also have a good chance of getting fiber to the home service… eventually, if they live in an urban or suburban community. Overbuilders and community broadband networks generally offer fiber service as an alternative to incumbent phone and cable companies, but many consumers don’t know about these under-advertised competitors. The chances for fiber optic service are much lower if you live in an area served by a legacy independent phone company like Frontier, Consolidated, Windstream, or CenturyLink. Their cable competitors face little pressure to rush upgrades to compete with companies that still sell DSL service offering speeds below 6 Mbps.

CAF funding from the FCC offers some rural areas a practical path to upgrades with the help of public funding, but with limited funds, a significant amount will be spent on yesterday’s technology. In just a few short years, residents will be faced with a choice of costly upgrades or a dramatic increase in the number of underserved Americans stuck with inadequate broadband. Policymakers should not repeat the costly mistakes of the United Kingdom and Australia, which resulted in penny wise-pound foolish decisions that will cost taxpayers significant sums and further delay necessary upgrades for the 21st century digital economy. The time for fiber upgrades is now, not in the distant future.

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