China Mobile, China United Network Communications and China Telecom will invest $177 billion to expand fiber optic service and mobile telecommunications infrastructure in China between 2015 to 2017, according to China’s Ministry of Industry and Information Technology.

At least $70 billion will be spent this year alone to add another 80 million fiber to the home connections and expand the latest generation of LTE 4G wireless Internet to more than 1.3 million cell towers and small cells that will cover almost every city in China. In contrast, providers in the United States only spend an average of $30 billion annually on all broadband technologies, only a fraction of that for fiber optic Internet services for residential customers.

By the end of 2017, every household in a significant-sized Chinese city will be equipped with a minimum of 10Mbps fiber to the home broadband for around $16/mo. First tier cities will get a minimum of 30Mbps Internet speed and second tier cities will receive broadband at a guaranteed speed of at least 20Mbps. Most customers served by China Telecom in Shanghai can already buy speeds up to 200Mbps for about $43 a month.

Chinese providers intend to upgrade their wireless networks to make sure that 4G networks completely cover every urban area as well as even the most rural communities.

A Florida utility company has told federal regulators it is certain Verizon has a plan to exit its landline and wired broadband businesses within the next ten years to become an all-wireless service provider.

Florida Power & Light argued in a regulatory filing with the Federal Communications Commission it was clear Verizon had plans to exit its wireline business after the phone company suddenly informed regulated utilities like FP&L it no longer seemed interested in fighting over pole attachment fees and pole ownership and use issues. FP&L suggests that is a radical change of heart for a company that has fought tooth and nail over issues like pole attachment fees for years.

“Verizon has made it clear it intends to be out of the wireline business within the next ten years, conveying this clear intent to regulated utilities in negotiations over joint use issues and explaining that Verizon no longer wants to be a pole owner,” FP&L wrote to federal regulators. “Indeed, the current proposed [$10.54 billion sale of Verizon facilities in Florida, Texas and California] proves this point.”

Verizon has fought repeatedly with the Florida power company over the fees it pays FP&L to attach copper and fiber cables to the power company’s poles. Verizon Florida has repeatedly accused FP&L of charging unjust fees and at one point withheld payments to the utility worth millions.

In February, the FCC dismissed Verizon’s complaint for lack of evidence in the first-ever decision in a pole attachment complaint case involving an incumbent telephone company under a joint use agreement with an electric utility. The power company accused Verizon of lying when it promised concrete benefits to consumers if the FCC reduced joint use pole attachment rates. Suddenly, Verizon no longer seems to be interested in the issue.

“Verizon has not increased its efforts to deploy wireline broadband in the last three years; and there is no evidence that Verizon has used the capital saved on joint use rates for the expansion of wireline broadband,” FP&L officials write. “Indeed, all of the evidence shows that Verizon is abandoning its efforts to build out wireline broadband.”

The power company is not about to just wave goodbye to Verizon. It filed remarks opposing the sale, claiming the benefits will end up in the pockets of executives and shareholders while customers get little or nothing. FP&L wants the FCC to enforce concrete conditions that guarantee Frontier will invest in upgrades to Verizon’s network, especially in non-FiOS service areas.

FP&L added it supports forward technological progress for the benefit of consumers, but the price of that progress should not be the abandonment of wireline customers, contractual obligations, and past promises to the FCC. The utility wrote it is not opposed to Verizon becoming a fully wireless company, but it should only be allowed to do so after it ensures that “its wireline house is in order.”

As things stand today, the utility argues Verizon is looking to abdicate on its obligation to deliver universal service and is no longer interested in maintaining its wired networks. FP&L points to Verizon’s efforts in 2013 to discard damaged wired facilities in favor of Voice Link, Verizon’s wireless landline replacement, in states including New York, New Jersey, and Florida.

“There should be no doubt that Verizon’s strategy to abandon wireline service in favor of wireless service extends beyond New York and Florida and beyond storm damaged and rural areas,” argues FP&L.

The utility points to Verizon’s successful effort to relieve itself of obligations to build a statewide fiber network in New Jersey that was supposed to be complete by 2010.

“Verizon, quite simply, has failed to build out wireline broadband in New Jersey because Verizon has no interest in doing so,” said FP&L. “As the sale of wireline facilities in Florida, Texas, and California […] clearly demonstrates, Verizon obviously is no longer interested in the wireline broadband business and sees its financial future in the wireless industry.”

Garofalo

Outrage from Minnesota’s elected officials representing rural districts around the state has embarrassed Minnesota House Republicans into grudgingly restoring a token amount of broadband funding to help small communities get online.

Earlier this month, the GOP majority’s budget proposal completely eliminated broadband development grants, which amounted to $20 million in 2014. Republicans attacked the spending as unnecessary and a wasteful “luxury.” The money was reallocated towards promoting tourism.

Budget point man Rep. Pat Garofalo (R-Farmington) said hardwired Internet access was outdated.

“The future is wireless and satellite Internet,” Garofalo declared, adding these were better, cheaper options for rural Minnesota.

Rural Minnesota strongly disagreed.

The West Central Tribune in Willmar declared the GOP budget proposal very disappointing to everyone in rural Minnesota.

“Rural Minnesota will continue to fall behind in broadband access and, in turn, the critical factors of quality of life, education, economic opportunities, access to health care and many other positive benefits,” the newspaper wrote in an editorial.

Rural Minnesota Broadband: Nothing to write home with a quill pen about.

“We are astonished as to why the House would ignore one of the state’s biggest economic development needs,” said Willmar City Council member Audrey Nelsen, a member of the Coalition of Greater Minnesota Cities’ board. “The lack of high-quality broadband affects communities and regions all across the state.”

“We agree,” the paper declared.

“High-speed Internet service is not a luxury, it is an absolute necessity for job and business growth,” said executive director Dan Dorman of the Greater Minnesota Partnership.

House Republicans seem intent on stomping out rural Minnesota’s digital economy. Broadband coverage in these areas is a disgrace: Kandiyohi County is third lowest in Minnesota, at only 13.18 percent, in the percentage of households with access to broadband that meets state-speed goals. Surrounding counties with low access percentages include: Chippewa at 24.47 percent, Yellow Medicine at 25.69, Swift at 30.41, Pope at 31.40 and Renville at 58.29.

In 2013, Gov. Dayton’s Broadband Task Force Report recommended a $100 million infrastructure fund to start addressing the $3.2 billion total investment needed statewide to address this issue. Garofalo seems ready to concede to an $8 million token allocation some Democrats call insulting.

Rep. Tim Mahoney said he believed 10 years of an annual $20 million investment would solve the rural broadband problem in Minnesota in a decade. The St. Paul Democrat believes with the GOP’s budget, it will take forever.

“For them to come up with $8 million is kind of ridiculous,” Mahoney said. “It’s almost a slap in the face.”

Garofalo believes AT&T and Verizon’s forthcoming home wireless broadband solutions will solve Minnesota’s broadband problems, without considering those services are expensive and tightly usage-capped. Satellite Internet is condemned by critics as costly “fraudband,” often speed-throttled and usage capped.

Fiber Internet, in Garofalo’s world view, is “yesterday’s technology,” despite ongoing investments in fiber to the home Internet around the world, including investments from companies including AT&T, Verizon, Google, and others that now offer fiber technology capable of speeds in excess of 1Gbps.

Sober assessments of the different broadband technologies available in Minnesota are already available from the state’s Office of Broadband Development. Garofalo’s budget resolves the ideological conflict between his views and theirs by eliminating the agency.

Garofalo said to save rural broadband, the state government must first kill any plan that might interfere with the private sector.

“The private sector won’t invest if it senses that the government is coming in with something else,” he said.

Without throwing Garofalo totally under the nearest tourist bus, House Ways and Means Committee chairman Jim Knoblach said the state needs rural broadband funding, even if other options such as wireless Internet may be a more efficient way to tackle the problem down the road.

“There are people waiting for broadband now that I think this would help,” the St. Cloud Republican said, supporting the restoration of $8 million in funding.

Google today unveiled their new wireless service, dubbed Project Fi, the first wireless carrier that combines the coverage of two competing cellular providers — Sprint and T-Mobile — to deliver affordable wireless service and a data plan that rebates back any unused portion of your monthly allowance. There are no term contracts, early termination fees, or overlimit penalty charges.

Google’s calling plan starts with Fi Basics for $20 per month. This includes:

• Unlimited domestic talk and text;
• Unlimited international texts;
• Low-cost international calls;
• Wi-Fi tethering;
• Coverage in 120+ countries (Unlimited international texts are included in the plan, Cellular calls cost 20c per minute. If calling over Wi-Fi, per-minute costs vary based on which country you’re calling and you’re charged only for outbound calls.)

There is no unlimited data plan, presumably because neither T-Mobile or Sprint was willing to allow Google to offer one. Google tries to turn that into a plus by telling customers they should only pay for the data they actually use. The 2G/3G/4G data plan is $10/GB, sold in 1GB increments up to 10GB. Whatever data you do not use is converted into a cash amount credited to the following month’s bill. Instead of rolling over data, you roll over dollars. If you exceed your allowance, there are no penalty overlimit fees. Instead, you are charged $10 for an additional gigabyte of usage, with the same privilege of getting a cash credit applied to your next bill for any data you didn’t use.

Google assumes you will spend most of your time connected to Wi-Fi, where it offers free Wi-Fi calling and texting. If you lose your Wi-Fi connection, the phone will connect to either Sprint or T-Mobile’s network without losing a call in-progress. Another unique aspect of the service is that your mobile phone number lives in the cloud, so you can talk and text with your number on just about any phone, tablet or laptop using Google Hangouts.

The Nexus 6 is a real handful. It’s also the only phone that will work on Google Fi.

Google Project Fi relies on Sprint and T-Mobile’s combined networks to deliver coverage, trying to satisfy customers seeking Verizon or AT&T-like coverage. Google’s service seamlessly chooses Wi-Fi first, followed by Sprint or T-Mobile depending on which offers the best 4G signal at your location.

Although the service has been anticipated for some time, there are some caveats to consider before rushing to sign up.

First, you cannot sign-up immediately, you can only request an invitation. As with many other new Google projects, invitation-only service means it could be days, weeks, or even a month before you can sign-up.

Second, a view of Google’s coverage map shows Project Fi has substantially reduced dead spots, but has not eliminated them. Project Fi would likely appeal to Sprint or T-Mobile customers now frustrated by their suburban coverage. Chances are good that between the two carriers, one will deliver a robust signal even if the other does not. But rural areas have always been bypassed by both carriers and this makes Project Fi a bad choice if Sprint and T-Mobile are not good options where you live or work.

For example, much of eastern Kentucky, virtually the entire state of West Virginia, and western Virginia offer little to no 3G/4G coverage. Google Fi only promises 2G coverage in these areas, through a roaming agreement T-Mobile or Sprint has with a larger carrier.

Third, unless you already own a Nexus 6, you will be spending at least $650 to buy a new smartphone. Google will initially only support the Nexus 6 for Project Fi, because it is the only phone capable of switching between Google’s wireless partners. It comes in your choice of colors, if your choice is “Midnight Blue.” The smartphone offers two storage sizes—32GB ($649) and 64GB ($699). You can buy the Nexus 6 up front or finance your phone at 0% interest or fees for 24 months at $27.04/month for the 32GB option or $29.12/month for the 64GB option. A credit check is required for the financing option.

Fourth, there are no family plan options. Each phone is assigned to its own account. If you intend to switch your family of four, you will be dealing with four individual accounts (and a whopping $2,600 to acquire four Nexus 6 phones). Because of the invitation-only approach now in effect, it may take some time to get all of your family members up and running.

Finally, Google intends that its mobile service effectively sells itself. That means they are not offering promotions to sign up and will not pay your existing carrier to cover any early termination fees. You can port your current landline or mobile telephone number to the service. Google does not disclose any fees for doing so.

[flv]http://www.phillipdampier.com/video/Google Project Fi 4-22-15.mp4[/flv]

Google produced this introductory video about its new wireless service: Google Project Fi. (1:56)