The remnants of JJ’s restaurant in Kansas City, Mo. after a gas explosion on Tuesday.

A contractor working for Time Warner Cable is alleged to have pierced a two-inch gas line in Kansas City, Mo., eventually causing a massive explosion that demolished a popular restaurant, leaving one worker dead and 15 injured.

Early Tuesday morning Heartland Midwest LLC, working on behalf of the cable operator, notified local authorities it intended to use a trenchless horizontal boring machine near JJ’s restaurant to install a fiber optic cable to reach a nearby office building.

Mark McDonald, president of North American Gas Workers Association told the Kansas City Star such installations can be dangerous because of nearby gas pipelines.

“You’re basically drilling blind,” McDonald told the newspaper. “You’re taking a lot of risk.”

Authorities now suspect that boring machine pierced the gas line and started a major leak.

There are conflicting reports about when the contractor notified emergency officials about the rupture. Some press accounts suggest it could have been one hour or more before 911 was notified.

Other reports criticize the local gas utility for not treating the gas leak as a more urgent threat.

Evacuations of nearby buildings, including JJ’s, did not begin until at least an hour after authorities were notified. Approximately one hour after that, JJ’s exploded leaving little more than a pile of rubble.

Megan Cramer, a 46-year-old server at JJ’s, was reportedly killed in the blast. More than a dozen others were injured.

At attorney for the contractor said the company was cooperating with local authorities in the investigation.

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KCTV-TV in Kansas City reports they could find no evidence Heartland Midwest filed a permit request before starting work on behalf of Time Warner Cable.  (2 minutes)

Phillip “You Guys Need a Timeout” Dampier

AT&T and Time Warner Cable are complaining they have gotten a raw deal from Kansas City, Mo. and Kansas City, Ks., in comparison to the incentives Google was granted to wire both cities with gigabit fiber broadband.

“It’s time to modernize our industry’s rules and regulations…so all consumers benefit from fair and equal competition,” read a statement from AT&T.

“There are certain portions of the agreement between Google and Kansas City, Kan., that put them at a competitive advantage compared with not just us but also the other competitors in the field,” said Alex Dudley, a Time Warner Cable spokesman. “We’re happy to compete with Google, but we’d just like an even playing field.”

The Wall Street Journal seemed to suggest Google was getting the keys to both cities, with grants of free office space and free power for Google’s equipment, according to the agreement on file with the cities. The company also gets the use of all the cities’ “assets and infrastructure”—including fiber, buildings, land and computer tools, for no charge. Both cities are even providing Google a team of government employees “dedicated to the project,” says the Journal.

The Google Fiber project was so desired that the local governments rolled out the red carpet. In Kansas City, Mo., for instance, the city is allowing Google to construct “fiberhuts,” small buildings that house equipment on city land at no cost, according to a person familiar with the matter.

The cities are discounting other services, as well. For the right to attach its cables to city utility poles, Google is paying Kansas City, Kan., only $10 per pole per year—compared with the $18.95 Time Warner Cable pays. Both cities have also waived permit and inspection fees for Google.

The cities are even helping Google market its fiber build-out. And both are implementing city-managed marketing and education programs about the gigabit network that will, among other things, include direct mailings and community meetings.

Several cable executives complain that the cities also gave Google the unusual right to start its fiber project only in neighborhoods guaranteeing high demand for the service through pre-registrations. Most cable and phone companies were required by franchise agreements with regional governments to build out most of the markets they entered, regardless of demand.

But the Journal missed two key points:

1. Time Warner Cable has been granted the same concessions given to Google on the Missouri side, and AT&T presumably will also get them when it completes negotiations with city officials on the matter.
2. Both cable and phone companies have the benefit of incumbency, and the article ignores concessions each had secured when their operations first got started.

The Bell System enjoyed a monopoly on phone service for decades, with concessions on rights-of-way, telephone poles and placement. AT&T was a major beneficiary, and although the AT&T of today is not the same corporation that older Americans once knew, the company continues a century-long tradition of winning the benefit of the doubt in both the state and federal legislature. AT&T has won statewide video franchise agreements that give the company the power to determine where it will roll out its more advanced U-verse platform, and enjoys carefully crafted federal tax policies that helped them not only avoid paying any federal tax in 2011 — the company actually secured a $420 million “refund” subsidized by taxpayers.

Cable operators also won major concessions from local governments under pressure from citizens eager to buy cable television. At the time, cable companies were granted exclusive franchises — a cable monopoly — to operate, an important distinction for investors concerned about the value of their early investments. Local zoning and pole attachment matters were either negotiated or dealt with legislatively to allow cable companies the right to hang their wires on existing utility poles. Franchise agreements permitted the gradual roll-out of cable service in each franchise area, often allowing two, three, or more years to introduce service. It was not uncommon for neighborhoods on one side of town to have cable two years before the other side could sign up. That sounds awfully familiar to AT&T U-verse today.

Google’s proposal to build a revolutionary broadband network delivering 1Gbps deserved and got the same type of treatment then-revolutionary phone and cable service won back in the day.

Time Warner Cable also won much the same treatment Google is now getting, and the cable operator has gotten $27,000 in fees refunded and will avoid another $100,000 in permit fees going forward. Time Warner Cable and Google will both receive free traffic control services during network construction — not that Time Warner Cable plans much of a change for customers in either Missouri or Kansas.

AT&T will likely also receive the same treatment, although it would be hypocritical of them to complain that Google gets to pick and choose where it provides service. Large swaths of Kansas City and suburbs are still waiting for U-verse to arrive, and many areas will never get the service. Cable operators had to wire a little further, but also benefited from years of monopoly status and network construction expenses paid off years ago when there literally was no competition.

Those paragons of virtue at Goldman Sachs are appalled Google has such a good relationship with Kansas City officials more than happy to have the gigabit speeds neither AT&T or Time Warner Cable would even consider providing.

Google’s rights “appear to be significantly more favorable than those cable, Verizon or any other fiber overbuilders achieved when striking deals with local governments in the past,” Goldman Sachs analyst Jason Armstrong told the Journal. “We’re surprised Time Warner Cable hasn’t been more vocal in its opposition.”

But then the cable company has secured most of the same benefits Google has, so why complain at all?

In fact, city officials had to browbeat Time Warner to modernize its network in ways it would have not done otherwise without the new agreement.

Both AT&T and Time Warner have every right to be concerned. Their substandard networks and high prices (along with a lousy history of customer service, according to national surveys) put them at a competitive disadvantage if Google does not make any major mistakes. Neither cable or phone company has made any noise about upgrading service to compete, and should customers begin to leave in droves, then both companies may actually have something to cry about.

The Wall Street Journal’s report on the concessions granted to Google wanders off into the Net Neutrality debate for some reason, and misses several important facts reviewed above.  (3 minutes)

Did you miss out on Google Fiber’s forthcoming gigabit broadband network in Kansas City, Kansas and Missouri? Kansans may not be out of luck, as provider SureWest aggressively continues work to expand its own fiber to the home network in several Kansas City suburbs and nearby communities.

SureWest, which believes strongly in fiber service, is busy laying fiber in conduits in Fairway, Mission, Roeland Park — all in Kansas. It also offers service in Lenexa, Overland Park, Shawnee and parts of Kansas City, Mo.

With all of this fiber, some Kansans may soon be able to choose between two competing fiber to the home providers.

SureWest General Manager of Kansas City operations Matt Zuschlag says SureWest’s fiber broadband service, which tops out at 50/50Mbps, will work just as well as Google’s gigabit (1,000Mbps) service because most web sites don’t need super fast speeds to load equally as fast. Even some bandwidth-intensive applications will not be able to take full advantage of Google’s fiber speeds because the networks currently supporting them were not designed to deliver sustained gigabit speed to end users.

SureWest works good enough for communities like Prairie Village, which is asking the company to wire its community for fiber service, regardless of where Google expands next.

SureWest competes with traditional cable and phone companies — Time Warner Cable and AT&T in the case of northern Kansas, and sells traditional triple play packages of phone, Internet, and television service.

But SureWest says its fiber network is always laid underground, which the company says offers improved reliability. Google Fiber is being installed largely on overhead lines alongside other utility services. SureWest says going underground allows it to skip the delays associated with obtaining pole use permits.

Believe it or not, Google Fiber has not always been headline news in Kansas City. Outside of a few stories in early spring about zoning and installation matters, local media (particularly television) has mostly given back page treatment to Google’s new fiber network since the city was first chosen in March, 2011.

That all changed last Thursday when television, radio, and newspaper reporters flooded a converted yoga studio in midtown Kansas City to attend Google Fiber’s unveiling. Many stations aired live reports on-site and devoted time during their afternoon and evening newscasts to explain what the service is all about, starting with what it will cost — $70 a month for 1Gbps service (or paying a flat $300 for 5/1Mbps service for the next seven years). Adding television brings the final price to $120 a month. Google considers landline phone service a dead-end business, and won’t bundle a telephone option, but customers can use Google Voice to make and receive most calls for free.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/KMBC Kansas City Google announces details of Google Fiber service 7-26-12.flv[/flv]

KMBC reports on the introduction of Google Fiber, what it will cost Kansas City residents, what it means for the city as whole, and when and how service will be installed.  (3 minutes)

Kansas City, Mo., Mayor Sly James said Google Fiber was more of an opportunity than a gift for Kansas City.

“We now have an opportunity to take a giant step and if we don’t it’s all on us,” James said.

KCUR Radio in Kansas City explores some of the public policy and institutional changes Google Fiber can bring the area with the advent of gigabit broadband. Mike Burke, Missouri co-chair, and Dr. Ray Daniels, Kansas co-chair of the Mayors’ Bistate Innovation Team talks about what changes Google Fiber could bring to health care, education, government, and more.  The Mayors’ Bistate Innovation Team recently released a report titled “Playing to Win in America’s Digital Crossroads,” a playbook for capitalizing on ultra-high-speed fiber in Kansas City, Kansas and Kansas City, Missouri. (Some of the specific details discussed in the program turned out to be outdated after last Thursday’s announcement introducing the service.)  (June 6, 2012) (52 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.

Some in the media seemed disappointed Google spent a considerable amount of time selling the entertainment-oriented element of its service — namely the television lineup and the equipment that comes with it, and less on the educational and transformational nature of gigabit broadband. But many in the audience didn’t need an explanation of what 1,000/1,000Mbps service will mean for them.

Reviewing the coverage shows a predictable response:

• Those under 30 want it today and won’t think twice about paying $70 to get it;
• Those running businesses that depend on the web also want it, and are slightly perturbed Google will only sell to residential customers at first;
• Families with young children want the service because they feel it will be a game-changer for their children’s education and future career;
• Income-challenged residents are concerned about the cost, but are happy to discover Google has an affordable option for them to participate in the wired world;
• Older residents seem preoccupied with the price and consider the television lineup even more important than broadband speed;
• Schools, libraries, health care, and non-profit groups are thrilled with the prospect of getting free or deeply discounted service;
• Incumbent providers are putting on a brave face, relying on what they feel is excellent customer service, local ties to the communities they service, and a current customer base that may be reluctant to switch.

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Google Fiber has arrived in Kansas City, and neighborhoods will compete to see who gets the gigabit broadband service first. KCTV in Kansas City reports. (3 minutes)

Google Fiber’s free 5/1Mbps service is another embarrassment to big cable companies like Comcast which offer less service for more money.

The Kansas City Star needlessly fretted about the remaining digital divide of Internet “have’s” and “have-not’s,” as Google launched a competition between neighborhoods to determine where to install the service first.

So far, many poorer urban core neighborhoods are expressing interest in Google fiber at a slower rate than middle- and higher-income neighborhoods.

It’s important now for efforts to reach out to help the lower-income neighborhoods rally so the access doesn’t become a new dividing line.

The newspaper is concerned by Google’s fiber map showing many minority, inner-city neighborhoods have yet to receive a single commitment from a resident willing to pre-register for the service. But Google is not running a competition to exclude anyone. It is surveying interest to ensure it has a working business model to sustain its fiber broadband operation. Overshadowed by the gigabit broadband announcement is the fact Google is also including a real solution for the income-challenged — an entry-level 5/1Mbps broadband option that will cost just $300 (payable in $25 installments) that guarantees service with no additional payment for seven years.

That is a broadband solution far superior to the afterthought programs on offer from Comcast and a handful of phone companies that only deliver a fraction of the speed, at a higher price, to those who meet a byzantine set of requirements. It is yet another embarrassment for Kabletown, which would not have even offered the service had the government not made it a condition for approving the mega-merger of NBC-Universal and Comcast.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/KCTV Kansas City Neighborhoods Compete for Fiber 7-26-12.flv[/flv]

KCTV visits some of the neighborhoods competing to be the first to get Google Fiber. Reaction from residents varies from those willing to canvas neighborhoods to get people to pre-register to others who will consider switching providers only if the price is right.  (4 minutes)

One Star columnist likened Google Fiber to a public works project that threatened to go bad pitting neighborhoods against one-another, rich against poor:

The more educated, middle- to upper-income neighborhoods in southwest KC and in midtown were signing up for first crack at the service.

Meanwhile, the neighborhoods without as many computers and without the income to afford the $70 or $120 proposed monthly charges for Google Fiber were signing up at far slower rates.

None of that means Google Fiber won’t be a big success.

But let’s not pretend there won’t be winners and losers with this advance in technology.

If Google Fiber narrows that digital gap – and makes more information available more quickly to more people to help boost the economy of KC – that’s all for the good.

However, being able to hook up eight computers in a house so people can be more entertained doesn’t set my world on fire.

Let’s remember Google Fiber is intended to be a for-profit business run by a for-profit corporation. Star columnist Yael T. Abouhalkah might have been more comfortable had he advocated for a community-owned broadband solution committed to serving every neighborhood, everywhere. Google Fiber is not that, at least not now. The alternatives from AT&T and Time Warner Cable have not solved the digital divide either. Giving away effectively-free 5/1Mbps broadband for seven years might.

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Google’s Fiberhoods are likely to win fiber service for the more high-tech areas of Kansas City, among the first to pre-register. Google’s Kevin Lo explains those areas most committed to getting the service will also win free fiber connections for their neighborhood’s schools, health care facilities, and public safety buildings.  KCTV reports. (3 minutes)

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KCTV explores what Google Fiber could mean for local schools who can utilize the faster connections for distance and remote learning.  (3 minutes)

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/WDAF Kansas City Customers Put Google Fiber to the Test 7-28-12.flv[/flv]

WDAF in Kansas City covers Google Fiber’s weekend “Open House,” inviting residents to experience what gigabit broadband is really like, and letting them see and sample the company’s broadband and television service.  (2 minutes)

[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/KSHB Kansas City Northland business owners react to Google Fiber limitations 7-26-12.mp4[/flv]

KSHB in Kansas City covers the reaction of local business owners elated and frustrated by the arrival of Google Fiber, which will open the door to new online innovation once Google begins selling to commercial customers (and if you are lucky enough to work in a Google Fiberhood.)  (2 minutes)

Time Warner Cable is back again with another offer to existing Frontier Communications customers trapped in multi-year service agreements.  If you dump your Frontier landline overboard for Time Warner Cable’s Digital Phone service, the cable company will send you a gift card worth $200 good towards defraying your early termination fee, if any.  If you don’t have such a fee, you pocket the $200.  A year ago on this date the company ran a similar promotion heavily promoted in local cable television ad spots.

Time Warner will provide free installation of the phone line including unlimited nationwide long distance for $24.95 a month for 12 months.  With the $200 gift card, that’s above and beyond their usual promotion.  The company is also extending a bundled discount if a customer also takes Road Runner broadband service with their “digital phone” service.

For Frontier customers looking for an early exit, this offers one opportunity.

Existing cable subscribers can take advantage of the offer.  There are terms and conditions to consider, starting with where the offer is available.  The following Time Warner Cable service areas qualify:

• TWC Western New York
• TWC Central New York
• TWC Albany, NY
• TWC New England
• TWC Dothan, AL
• TWC Enterprise, AL
• TWC Yuma, AZ
• TWC El Centro, CA
• TWC Gunnison, CO
• TWC Telluride, CO
• TWC Coeur d’Alene, ID
• TWC Moscow, ID
• TWC Madison, IN
• TWC Newburgh, IN
• TWC Terre Haute, IN
• TWC Ashland, KY
• TWC Owensboro, KY
• TWC Richmond, KY
• TWC Kansas City, MO
• TWC Lincoln, NE
• TWC Ironton, OH
• TWC Richlands, VA
• TWC Pullman, WA
• TWC Clarksburg, WV

Next, the offer is only good for residential customers switching from Frontier’s landline service.  Limit one gift card per customer.  Your final Frontier phone bill showing a disconnect request must be furnished to Time Warner Cable within 30 days to qualify.  Your name and address must match on both bills.  Offer is not available to customers with past due balances with Time Warner Cable, defined as any money owed in the past 30-60 days or customers who have been disconnected for non-payment in the twelve (12) month period preceding this offer.  Service must be ordered by Dec. 31, 2010, and installation must occur within thirty (30) days of order date.

If you’ve contemplated a change in providers but didn’t want to be subjected to a steep early cancellation fee, this isn’t a bad offer.  Although I don’t use Time Warner Cable Digital Phone myself, others in my family do and they are satisfied with the service, although there have been at least two serious outages so far this year that ran several hours.  Since most people also carry a cell phone, any cable outage or power interruption that also takes out your phone line isn’t as serious as it might have been in earlier years.

And, ahem, unlike Time Warner Cable’s attitude towards broadband, they really do provide unlimited calling with their “digital phone” service.

Time Warner Cable is mailing this letter to Frontier Communications customers in the Rochester, N.Y. market. (Click to enlarge)