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Taking What You Can Get: Broadband Life in Rural Upstate New York

Schoharie County, New York

Schoharie County, New York

Schoharie County has the dubious distinction of being one of the New York counties least well-served with high speed broadband service.  In fact, according to the Schoharie County Telecommunications Task Force, our county is ranked last in the Capital Region, located in and around the state’s capital city Albany.

Last fall the Task Force concluded that almost half of the county’s residents had no access to broadband service at all, a point since disputed by one of the local telephone companies providing service to parts of the county, but regardless of who has access, residents are accustomed to taking whatever broadband service they can get.

Schoharie County has just over 31,000 residents across its 622 square miles.  It’s a beautiful place to live, especially along the southern parts of the county which lie within the Catskill Mountains.  Several small towns, villages and hamlets dot the county, providing a rural lifestyle but within easy reach of Schenectady and Albany.  Unfortunately, part of living in rural upstate New York is recognizing the reality of the digital divide.

The rural setting of Schoharie, NY

The rural setting of Schoharie, NY

To our east, our bigger city neighbors enjoy access to Verizon fiber-based networks and Time Warner Cable’s Road Runner broadband service.  Broadband is fast, plentiful and relatively inexpensive.  But once pastures replace strip malls, it’s an entirely different story.

In much of Schoharie County, broadband service is provided by locally owned Middleburgh Telephone Company, which has been serving most of our area for over 100 years.  A few dozen employees cover everything from billing to repair and installation, and not just for telephone and broadband service, but also for cable television.  Midtel Cable TV, owned by the telephone company, serves many areas the bigger cable companies forgot.

Unfortunately, Middleburgh Telephone controls broadband, which means instead of providing cable broadband over Midtel, customers in much of Schoharie County are stuck with old-fashioned DSL service delivered by telephone lines.

While the hometown feel of the local phone company makes you feel like a valued customer when you deal with them, the broadband products they offer leave a bitter taste in your mouth.  MIDTEL.NET customers can look forward to an either/or proposition.  Either endure painfully slow DSL service or pay an exorbitant amount of money for the kind of broadband service speeds commonly available in larger communities.

MIDTEL.NET Price Chart
DSL – mSPEED Lite: $29.95/month — 384kbps download, 128kbps upload
DSL – mSPEED: $43.95/month — 3Mbps download, 500kbps upload (Prepay discount: 6 months – $250.00 or 12 months – $495.00)
DSL – mSPEED Plus: $59.95/month — 5Mbps download, 1Mbps upload (Prepay discount: 6 months – $340.00 or 12 months – $670.00)
DSL – mSPEED Premium: $164.95/month — 10Mbps download, 1.5Mbps upload (Prepay discount: 6 months – $940.00 or 12 months – $1,850.00)

While most residents are grateful for the optional higher speed services our friends and neighbors in other rural communities simply don’t have, the pricing makes it unaffordable for the vast majority of residents, who typically make due with the mSPEED $43.95/month service.

Of course, those speeds are not guaranteed.  Because I reside more than 10,000 feet from the local telephone company central office, I cannot really access any service plan above 3Mbps.  The higher speeds simply would not work.

You're in slow broadband country, too.

You're in slow broadband country, too.

To our north, Frontier Communications provides telephone and broadband service to residents in Fulton, Herkimer, Clinton and Essex counties, as well as the western part of Montgomery County and parts of northern Saratoga County.  Frontier has taken ownership of several formerly independent telephone companies in eastern New York, as well as a few formerly owned by Rochester Telephone.  Frontier actually does a better job than Verizon in rural parts of upstate New York in providing at least some type of broadband service.  Large sections of the state still served by Verizon have no DSL or any other kind of broadband service.  Frontier does seem to pride itself with providing residents with broadband service, but not always consistently.

Stratford, Lassellsville, and Oppenheim, all within Fulton County are three communities with significant gaps.  All are within or adjacent to the Adirondack Park, which covers a section of the Adirondack Mountains.  At one point, several bypassed residents in Fulton County signed a petition and presented it to local Frontier officials, convincing them enough customers were willing to purchase the service to make it available to that neighborhood.

Frontier and Middleburgh Telephone both share an attitude of  requiring a “critical mass” of potential customers to make it worth their while to provide DSL service. Unfortunately, that cannot come fast enough for many underserved communities, whose local governments receive a steady stream of calls from residents wondering when broadband service will become available in their area.

Where Frontier does provide DSL service in rural upstate communities, it’s slow and expensive.

Frontier’s website for most of Fulton County shows two service plans available:

Frontier Communications DSL Price Chart
Frontier High-Speed Internet Lite – 768kbps  $39.99 per month
Frontier High-Speed Internet Max — up to 3Mbps  $49.99 per month

That pricing is before a $5 a month “modem rental fee,” and as least as much for taxes and surcharges.  Add at least $10 to the quoted price to cover all of these fees.  Frontier also likes to commit its customers to term commitments.  My friends in Frontier service areas are strongly pushed towards one, two, or even three year “price protection plans”, as well as a backup and support service called “Peace of Mind” which can add another $13 a month to your bill. Certain promotional bundle pricing can lower some of these costs, but not enough to erase the disparity in pricing between rural broadband service, and that provided in larger cities within easy driving distance.

The impact of unavailable or unaffordable broadband service can be severe, subjecting rural communities to economic disadvantages including:

  • an inability for local small businesses to operate and/or maintain online websites to market products and services to customers;
  • educational institutions are unable to effectively teach our children how to navigate the critically important online world;
  • the impossibility of attracting high technology business and industry into underserved communities;
  • a reduction in the quality of information and service available in rural public libraries;
  • making life difficult for home-based teleworkers or telecommuters who conduct some/all of their employer’s work from home;
  • a reduction in property values by reducing competition for available properties rejected by potential buyers because of lack of broadband access;
  • a loss of potential innovation and online business start-ups because of lack of access;
  • information disparity for residents unable to access online information the rest of the wired nation takes for granted.

So why do providers not provide universal access?  It’s a good question for some opinion leaders in this part of the state.

Gilboa, NY is just one of hundreds of small New York towns with "take it or leave it" broadband.

Gilboa, NY is just one of hundreds of small New York towns with "take it or leave it" broadband.

Anne Myers, the provost at SUNY Cobleskill, a state university, told the local newspaper that “Broadband is like rural electrification — it’s necessary for areas to move forward. There are things you can’t do if you don’t have broadband.”

Myers advocates for the same guarantee of access to broadband that Americans were given for electricity from the Roosevelt Administration’s electrification programs of the Tennessee Valley Authority and the Rural Electric Administration.  Indeed, she could benefit from it, because her home in Summit, in Schoharie County, has no access to broadband either.

Unfortunately, the New York State Public Service Commission (NY PSC) has been less than aggressive in advocating for such an approach.  In fact, it has adopted a “free market” strategy and has become complacent and tolerant of the results: slow and expensive rural broadband, if it’s available at all.

The Public Utility Law Project of New York, a group advocating for universal access, has heavily criticized the NY PSC for what it calls, “in essence [arguments] for continued reliance on failing market-based policies, policies which exacerbate the digital divide and have left millions of households without broadband. A review of other comments filed with the FCC reveals that New York is behind the times and out of step with every other state that submitted comments [to the Federal Communications Commission].”

Lou Manuta, who writes for the PULP Blog, went much further:

Essentially, the PSC seems to be saying that policy makers elected by the people who see the importance of universal affordable broadband to the future of the economy and society should not disturb the results of the broadband “market” – which in most localities is a duopoly of landline and cable providers. Such blind faith in the market, however, has already left New York far behind countries that have been proactive with policies to lower the cost of broadband, increase speed and bandwidth, and increase its deployment and actual use by citizens. The PSC even questioned the need to bring broadband to every citizen today:

A broadband plan seeking to bring broadband immediately to 100 percent of the country may be ill-advised. A goal of 100 percent broadband deployment may not be economically rational with traditional, wired service. However, the evolution of technology, like third generation wireless, could provide more efficient and cost effective alternatives for ubiquitous broadband.

This is a familiar refrain to defend market power of existing providers: someday the market will bring providers with a new technology that magically would bring affordable service to unserved or underserved areas, so therefore regulators and government should do nothing.

Groups that provided comments similar to those of the PSC were free-market think tanks, such as Americans for Prosperity, FreedomWorks Foundation, and Americans for Tax Reform (ATR). ATR, founded by anti-tax radical Grover Norquist. The PSC’s positions closely resonate with the comments of ATR, which glossed over the market failure and reduced competitive position of the United States in comparison to other countries, and wrote:

We are on the right track; the free market is working. Consumers are enjoying an ever-expanding array of choices and performance. . . . In order for free-market models to provide for the further development of broadband access, however, it is absolutely critical that government intrusion not prevent private capital from recouping its investment. If private capital becomes convinced that its ability to recoup its investments is less likely, it will be less likely to make the significant investments in broadband that is the very goal of this FCC inquiry.”

Both the PSC and ATR take these “hands off” positions when it comes to the price and deployment decisions of the cable and phone company duopoly, even though

  • millions of people who in theory have “access” to broadband cannot afford it,
  • the U.S. has some of the world’s slowest, most costly broadband (per megabit per second),
  • the U.S. subscribership rate has sunk from 4th to 15th in the world in recent years, even as other countries with more affirmative broadband policies surge ahead.

So what precisely keeps broadband providers from providing universal access and wiring all of their customers?  Profit and return.  The costs to construct extensions of their networks to reach even the most isolated customers isn’t worth the potential return, say most providers.

Could communities like Seward benefit from broadband stimulus funding?

Could communities like Seward benefit from broadband stimulus funding?

Before the Obama Administration turns on the broadband stimulus faucet, the emergency federal economic stimulus package provided more than seven billion dollars for “shovel-ready” construction projects across the nation.  More than $175 million is targeted for New York state.  Despite Albany’s usual circus-like chaos, dysfunction, and a recent state Senate coup d’etat, Governor Paterson, the Senate and Assembly managed to identify 32 broadband projects that could be eligible for grants from the federal fund.  Competition for “free money” from everyone from educational groups to telephone companies to local municipalities is fierce, and will only grow more so when the federal broadband stimulus money begins to flow.

Both Frontier and Middleburgh Telephone believe federal stimulus funding may help improve the viability of reaching their most rural communities.

Middleburgh Telephone is even willing to partner with municipalities to provide service to areas it does not reach today, such as in Carlisle and Esperance.

But just as important as availability, according to Lou Manuta with PULP, is affordability.  Even where broadband is plentiful and less expensive than in rural areas, it’s still out of reach for many of New York’s poorest residents.  Manuta advocates providing special “Lifeline”-type broadband packages to disadvantaged state residents, which offer very basic broadband service for a very low price.

For residents in rural New York, change cannot come soon enough.  Without it, even big states like New York will leave hundreds of thousands of residents behind, stuck with slow broadband at unaffordable prices.

Jenny Pirro comes to Stop the Cap! as a consumer concerned about broadband service in rural communities.  She is a lifelong resident of upstate New York, recently retired from a career in banking.   She has been a customer of both Middleburgh Telephone and Frontier Communications.  For privacy, Jenny chooses to write under her maiden name.

CBS: The ‘Hulu Holdout’ Joins TV Everywhere Comcast Trial

Phillip Dampier July 14, 2009 Comcast/Xfinity, Online Video 1 Comment

cbsIt has been a busy week for the TV Everywhere test project.  First, two premium movie networks — HBO and Starz agreed to participate in the trial, and now CBS, the first broadcast television network, today announced it was signing on as well.

CBS will be running a mix of older and current shows as part of the trial with Comcast subscribers, probably including its popular shows like CSI and NCIS, which are already available in some areas online through Comcast’s “Fancast” portal and through Time Warner Cable’s Primetime on Demand channel, available on digital cable.

“CBS and Comcast share the same vision of giving consumers more — more content, in more places,” said Matt Bond, Executive Vice President of Content Acquisition, Comcast Cable.  “On Demand Online is a major step in extending consumers’ television experiences online, and ultimately across platforms by giving any television network, including top brands like CBS, the ability to make their content available on the Web.”

CBS historically has avoided partnerships with the cable industry.  It is the only network that never launched a cable network (ABC Family, MSNBC, CNBC, fX, and others on offer from other networks), and also steered clear of a partnership with Hulu, which has ABC, Fox, and NBC among its partners.

The network is interested in the potential exposure its shows might have on-demand, particularly among younger viewers.  But more importantly, being friendly to the largest cable companies around may prove fruitful when the network wants retransmission consent agreements signed, permitting cable companies to place the network’s owned and operated local TV affiliates on the cable dial without a lot of aggravation and negotiations over fees.

TV Everywhere will offer “authenticated” subscribers to cable television or satellite service access to on-demand, streamed video programming through broadband networks.

Upload Speed Matters

[Update: July 14/12:27am — Our sharp eyed readers contested the accuracy of the speed chart shown below almost immediately after publication.  Eric, who pens for Photography Bay we linked to below, replied to my inquiry about the data.  His reply:  “The speed estimates come from Verizon. I was more concerned with the upload figures; however, now that you mention it, it looks like Verizon may have the 80% calculation on the wrong side of their equation for the download portion of the chart. The upload chart looks right with FiOS at 10x faster than cable; however, the download chart shows a 20% speed increase when it should show a 5x speed increase. Nice catch.” I suppose we should let Verizon know. Thanks to our readers who caught the math error.  Hopefully their billing is more accurate.]

With the announcement by Rogers that their particular implementation of DOCSIS 3 would bring speeds of 25-50Mbps for downloads, it was curious that the company elected to only make incremental increases in upload speed.  Maxing out at just 2Mbps for uploading, Rogers continues the mindset that broadband subscribers don’t care about upload speed — just download speed.

That may have been true in the past, but today’s broadband consumer is woefully underserved with slow upload speeds, which hamper uploading pictures, home movies, and other content to share with friends, family members, or like we do here, the rest of the connected world as a whole. With the rise of ai image generation, however, creating content has become easier, even without the need for large file uploads.

In Rochester and many other Time Warner Cable cities, upload speed has remain unchanged for standard service customers for more than a decade — just 384kbps.  Paying $10 more for Turbo service, if only to get 1Mbps (which isn’t exactly “blazing fast” these days either), is the only alternative.

Fiber to the home services like Verizon FiOS and some municipally run fiber systems are changing the paradigm for upload speeds, providing customers with substantially faster service — typically far more than telephone company DSL or broadband service from the local cable operator.  A “speed test” from New York from a FiOS customer illustrates the capability:

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For photographers, among many other net users, upload speed is critically important in managing their photograph collections.

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The Photography Bay blog compiled a chart illustrating the dramatic differences upload speeds can have on your time and patience:

verizon-fios

Ex FCC Commissioner Earns Her Pay As Pro-Telecom Industry Hack – Advocates for Internet Overcharging

Phillip Dampier July 10, 2009 Data Caps, Editorial & Site News 6 Comments
Here comes the Astroturf

Here comes the Astroturf

Deborah Taylor Tate, a Bush-appointed ex-commissioner on the Federal Communications Commission is now earning her paycheck regurgitating telecommunications industry talking points of behalf of the astroturf group, the Free State Foundation.

In an editorial in today’s Washington Times (thanks to reader Mitchell for alerting us about it), Tate perfectly falls in line with the talking points Stop the Cap! readers can repeat in their sleep, right down to ripping off AT&T’s “grandmother” analogy from several weeks ago.  Her employer, the Free State Foundation, has a long history of advocating pro-industry positions in opposition to consumer interests.  Having a former credentialed FCC official doing the industry talk is designed to impress.

Tate, who was never impressive as an FCC commissioner and maintains her ongoing unimpressive credentials at FSF, phones it in with a fact-free piece entitled, “Paying for Use is Fair,” in which she directly advocates for Internet Overcharging schemes, attempting to convince readers it will somehow save them money on their broadband service.

Her efforts to tell the story of “paying for what you use” will be comical to those in the communities where such “experiments” were conducted, because Tate either doesn’t know or care about the details of the market experiments she writes about.

Most broadband consumers would be astounded that some members of Congress want to block our ability to pay for broadband Internet use in precisely the same way we now pay for other commodities: Pay more if you use more; pay less if you use less.

Most consumers would be astounded an ex-FCC commissioner got the basic facts wrong about the basis of such pricing schemes.  No broadband provider has ever offered a “pay for what you use” pricing scheme.  They have only offered “pay MORE for what you use, and a lot more if you use more than you thought.”

This comes on the heels of Time Warner’s rapid retreat from a pilot test of pay-for-use broadband pricing, bowing to congressional pressure and protests from consumer groups. Studies have indicated the top 25 percent of users have consumed 100 times more bandwidth than the bottom 25 percent. So, what is fair about one-price-fits-all if someone uses 100 times more than you do?

At least Tate barely acknowledges another basic truth about these pricing schemes: the overwhelming majority of Americans do not want this kind of pricing model, and more than half would leave their existing provider if they tried to force them into one.

The “studies” Tate writes about do not exist.  They are claims by the providers themselves, which have never allowed for an independent review of the raw data the companies claim to base their findings on.  Nor does it account for the industry’s “need” to increase every consumer’s broadband bill with overcharging schemes based on limited consumption allowances and credit card-like overlimit penalties and fees.  Indeed, this is an industry with profits well into the billions of dollars whose costs are actually declining, along with their willingness to invest in growing their networks.  One need only review quarterly and annual financial reports issued by the providers’ themselves to learn the truth.  These companies are not hurting for profits.

Even where monopolies exist, pricing has generally been based on the notion that customers are charged more if they consume more and less if they use less. Obviously, beyond basic necessity, they could exercise some self-control, and could even save money through metering that measured consumption. This is especially true in an environment where consumers have options for providers of broadband, cell phones and now, in many cases, electricity.

Broadband pricing has been flat rate since the service was launched by phone companies providing DSL and cable operators launched cable modem service in most areas of this country.  That’s because broadband has been cheap, capacity plentiful, and profits high.  Absolutely nothing has changed in that equation, except a desire by broadband providers to dramatically grab additional profits, reduce demand with threats of overlimit fees or service being cut off for overuse, and attempts to invest less in their networks.  Controlling online video is critical for most of the providers who find that a competitive threat to their television service business model.

Tate doesn’t bother to contemplate increased competition, seeming happy enough to acknowledge monopolies do exist and then moving on to something else.  That mimics the FCC’s position over the past eight years, so that comes as no surprise either.

Whether run by local co-ops, governments or profit-making firms, any network has substantial capital costs to build out infrastructure, provide service, expand capacity and meet higher demand, particularly at peak periods. The same network cost issues also apply to Internet service providers. Expanding bandwidth and capacity for the exponential growth of Internet traffic is expensive. Updating security applications to prevent cybercrime are increasingly necessary for government, business and individuals, driving up costs even further. The supply of fiber optic cable and computer servers is not infinite, and we are already facing network constraints. We have all experienced the network being slowed by periods of heavy usage. Broadband providers — just like wireless providers — should be allowed to use a consumption model without government interference as long as consumers know and understand what they are paying for.

To date, there has been a surprising uniformity in billing for broadband Internet service. But why should a grandmother who checks e-mail once a day or makes an occasional purchase online be charged the same monthly rate as a researcher downloading massive data files or teenagers watching full-length movies every day? Why not provide consumers the freedom to monitor and control their own use — and to benefit from volume-based rate packages?

AT&T should consider legal action against Tate for plagiarizing their talking points.  In fact, her entire argument is part of the grand Re-education campaign we’ve written about since Time Warner Cable temporarily shelved their overcharging scheme back in April.  The “exaflood” nonsense, the “it’s expensive to spend money to upgrade our networks” whining, and the hissyfit over consumers using their service just as these same providers marketed them are all in there.

Deborah Taylor Tate: The Marie Antoinette of Internet Pricing

Deborah Taylor Tate: The Marie Antoinette of Internet Pricing

At least Tate is consistent — she never cared about consumers like you and I during her stay on the FCC, and she still doesn’t care about consumers by doing the bidding of groups like the Free State Foundation.

What do Washington Times readers think?  Not much of Tate or her positions.  Among them:

“Wow, did you just pull a page out of the telecom’s lobbyist manual to come up with this article?  They are doing this to prevent new technologies from making them an antiquated model, and they are doing it to get more money out of the customer. I promise it has nothing and I mean nothing to do with saving your grandma a single cent.”

“Are you being paid by the cable co? Seriously. Do you even realize with the utter lack of competition and the fact that the cable company enjoys a monopoly in most all of their markets, pricing for use is utterly bad for consumers.”

“Bill is right, you’re just reading talking points at this point, and not looking at the actual economics or technology behind it.”

“Deborah, Please take a moment to think for yourself instead of shilling for an industry. Metered billing has nothing to do with customer choice, please don’t pretend that it does. This is about making more money off of existing usage, while avoiding upgrading of networks and services.”

“So for instance, using the same logic and same company, when I call for traditional phone service, they are quick to sell me an “Unlimited” minute plan for $40.00/month.”

“Metered usage is nothing more than a money grab by the content providers. Their current business model is being threaten by media content being available via streaming services.”

In the end, consumers like you and I pay part of our monthly broadband bill to providers that are cutting checks to astroturf groups to advocate against consumer interests.  Imagine if they spent some of that money on their network upgrades, and a little less funneled to inside-the-beltway hackery written by underwhelming ex-officials-turned-insider-special-interests.

Scam: NC Democrat Throws Consumers Under the Bus, Broadband Map Crayoning, & $350 Million Taxpayer Dollars Flushed

Is this worth $350 million of your taxpayer dollars?

Is this worth $350 million of your taxpayer dollars?

North Carolina residents should be outraged at Rep. Bill Faison, the Democratic chairman of the state House Select Committee on High-Speed Internet Access in Rural Areas.  He’s set to do for North Carolina broadband what Hurricane Katrina did for urban renewal in New Orleans.  Faison, along with some other cronies, are examples of what is wrong with broadband stimulus planning when certain elected officials open their doors on big special interests, and slam them on the fingers of actual consumers.

Eight years ago, the North Carolina legislature commissioned the state to produce accurate, detailed broadband maps, depicting who has access to what broadband services, if any, across the Tar Heel State. e-NC, an organization of excellence recognized worldwide, set about not only doing broadband mapping, but also advocating for consumer and business interests across the state by pushing for higher quality and faster service.  e-NC’s mapping standard has been recognized by the European Commission, Microsoft, and IBM for its detailed, accurate depictions of broadband service.

e-NC has had its work cut out for it.  AT&T and other North Carolina telecom providers have stonewalled the group since day one, refusing to disclose “private company information.”  Where e-NC could obtain agreements, they came with ludicrous non-disclosure agreements that were the equivalent of ‘here is the information you requested, but you cannot use it in your maps.’

That’s where Faison comes in.  He sends out an invitation to the media to announce North Carolina finally has a broadband map available, and then proceeds to slam e-NC because it produced maps that, at one point, he compared with “swiss cheese.”  Faison is fully aware that e-NC had been complaining about provider stonewalling, and he did nothing to stop it.  But then he did something even worse: he praised the very providers who did the stonewalling and are now in charge of producing the “detailed maps” that the providers want the legislature to see.

Faison said, “In the face of legislation recommended by the Committee which would have required the providers to disclose precise information to the Legislature for our staff to generate a detailed map of availability, the providers have come together and collectively decided to provide the information through Connected Nation, to not only provide the “street address” map but also to make the map both accessible and interactive through the internet. Special recognition should be given to AT&T, Embarq, Sprint, Time Warner Cable, The Cable Association, the Telephone Co-op association, and Alltel for their work on this matter.”

Shameful.

Of course, Faison’s anti-consumer efforts on behalf of his good friends in the telecommunications industry are no secret to our North Carolina readers.  Faison was one of the proponents of the anti-consumer nightmare legislation S1004, which was hand-crafted by big cable and telephone companies to stop municipal broadband projects across the state.  Faison is a menace for consumer interests in North Carolina.

Faison doesn’t care, of course.  He has his eyes on some of that $7.4 billion in broadband stimulus money he hopes to grab for the state AT&T, Embarq, Sprint, Time Warner Cable, and any other provider that will try and use their own maps to “qualify” for the tax dollars you and I are going to hand over for broadband development.

Faison said: “North Carolina will be one of only six states with a detailed “street address” interactive map of broadband availability. It positions us advantageously to obtain a portion of $7.4 billion in Stimulus money available for broadband deployment. A map, such as ours, is now a precondition for obtaining this portion of the Stimulus money. The collaborative work of the Committee and the providers has now postured North Carolina in the most favorable of positions to not only obtain this portion of the Stimulus money, but also to advance broadband deployment for our people.”

In other words, by replacing reality with the telecom industry’s own version of reality, they hope to sneak through applications that look good on paper, whether or not they accurately depict the real “on the ground” state of broadband in North Carolina.  If I were a grant application reviewer with this kind of “detailed” conflict-of-interest map work, I’d disqualify the entire state from getting one penny.

As the excellent investigative piece by Art Brodsky points out over on Public Knowledge (thanks Stop the Cap! reader Michael for showing the way):

AT&T stiffs the state, and then makes up its own map, which state legislators accept. There is no transparency, no verification, no nothing. (But it is interactive.) The only way in which this can not be a total conflict of interest is to recall the (perhaps) apocryphal story of the Maryland state legislator who also owned a liquor store. He introduced a bill to help liquor stores and was asked if this bill was a conflict of interest. “How does this conflict with my interests,” he was said to have replied. Exactly.

Meanwhile, the oh-so-aptly named (well-)Connected Nation, packed to the rafters with big cable and telephone company lobbyists, is busily doing its part to flush $350,000,000 of taxpayer funding down the drain with its own “broadband maps” which resemble the crayoning work your 1st grade son brought home from school.

Connected Nation, a creature of AT&T, spent $7 million dollars of your taxpayer money to commission Connect Ohio, an affiliate, to map broadband availability in that state.  The result was a map you could have drawn yourself during a TV show commercial break.  I think I’ll use Light Pink myself.

Connect Ohio's "Broadband Map" for Summit County, Ohio

Connect Ohio's "Broadband Map" for Summit County, Ohio

No, the blue speckles are not from blueberry pie stains.  Those are bodies of water.  What exactly does Connect Ohio’s map say?  Not a whole lot.  Basically, it claims the areas in beautiful pink are locations where broadband service is supposed to be available.  The whitish areas are outta luck.

Seven million well spent dollars there!

Meanwhile, here is a map from Strategic Networks Group, a company that was never eligible for federal mapping grant money:

Map from Strategic Networks Group, that didn't cost taxpayers a cent

Map from Strategic Networks Group, that didn't cost taxpayers a cent

Which map would you prefer to rely on?  The $7 million dollar boondoggle from Connect Ohio or the zero taxpayer dollar map from Strategic?

Why didn’t Strategic get the contract?  Because Sen. Dick Durbin, D-Illinois custom wrote language into the Broadband Data Improvement Act, that specifically defined who received the award money.  Basically, it came down to only those well-connected politically with state governments (Connected Nation) getting the lion’s share.  No merit-based mappers need apply.

Strategic’s maps were apparently too good. Take a look at this exceptionally detailed map they produced for just western Akron, Ohio (and notice this is page four of a series of detailed maps):

Unlike Connected Nation's maps, you WILL have to click to enlarge!

Unlike Connected Nation's maps, you WILL have to click to enlarge!

Stop the Cap! stands with Art Brodsky and Public Knowledge regarding this travesty:

The government notice setting out the terms for the mapping grants was sadly deficient. Even if one grants that Connected Nation was wired in under the terms of a misguided bill, the agency notice of funds availability had no conflict-of-interest safeguards. There are no requirements for transparency or for verification of information. There are no standard data sets to make sure all the maps measure the same things. Instead, there are what appear to be protections for “confidential” information that could render the process useless.

Perhaps some of these deficiencies can be cured at the program moves forward. Perhaps not. In either case, these cautionary tales are getting a bit tiresome. Jury-rigged RFPs, no-bid contracts, hot-wired legislatures and state agencies are no way to run a program as important as broadband.

The stimulus broadband mapping program is set up for massive failure unless changes are made. Congress has to allow more competition for grants. The Durbin argument that private, for-profit companies shouldn’t do public work like broadband mapping, while non-profits should, falls apart when one considers the advantages of an independent company vs. a compromised non-profit. The agencies responsible need more detailed criteria to protect the public investment. Consistency, transparency, public verification and less protection of information are needed. Maybe then can an #epic fail can be avoided.

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