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Stop the Cap!’s Election Guide for Broadband Enthusiasts

Tomorrow is election day in the United States. Stop the Cap! has reviewed both presidential candidates’ positions (or the lack thereof) as well as the past voting records and platforms of members of both major political parties. With this in mind, it is time for our election guide for broadband enthusiasts. Regardless of what candidate you support, please get out and vote!

Neither political party or candidate has been perfect on broadband advocacy or consumer protection.

We’ve been disappointed by the Obama Administration, whose FCC chairman has major problems standing up to large telecom companies and their friends in the Republican-led House of Representatives. Julius Genachowski promised a lot and delivered very little on broadband reform policies that protect both consumers and the open Internet. Both President Obama and Genachowski’s rhetoric simply have not matched the results.

Bitterly disappointing moments included Genachowski’s cave-in on Net Neutrality, leaving watered down net protections challenged in court by some of the same companies that praised Genachowski’s willingness to compromise. Genachowski’s thank you card arrived in the form of a lawsuit. His unwillingness to take the common sense approach of defining broadband as a “telecommunications service” has left Internet policies hanging by a tenuous thread, waiting to be snipped by the first D.C. federal judge with a pair of sharp scissors. But even worse, the FCC chairman’s blinders on usage caps and usage billing have left him unbelievably naive about this pricing scheme. No, Mr. Genachowski, usage pricing is not about innovation, it’s about monetizing broadband usage for even fatter profits at the expense of average consumers already overpaying for Internet access.

Obama

Unfortunately, the alternative choice may be worse. Let’s compare the two parties and their candidates:

The Obama Administration treats broadband comparably to alternative energy. Both deliver promise, but not if we wait for private companies to do all of the heavy lifting. The Obama Administration believes Internet expansion needs government assistance to overcome the current blockade of access for anyone failing to meet private Return On Investment requirements.

While this sober business analysis has kept private providers from upsetting investors with expensive capital investments, it has also allowed millions of Americans to go without service. The “incremental growth” argument advocated by private providers has allowed the United States’ leadership role on broadband to falter. In both Europe and Asia, even small nations now outpace the United States deploying advanced broadband networks which offer far higher capacity, usually at dramatically lower prices. Usually, other nations one-upping the United States is treated like a threat to national security. This time, the argument is that those other countries don’t actually need the broadband networks they have, nor do we.

The Obama Administration bows to the reality that private companies simply will not invest in unprofitable service areas unless the government helps pick up the tab. But those companies also want the government to spend the money with as little oversight over their networks as possible.

That sets up the classic conflict between the two political parties — Democrats who want to see broadband treated like a critically-important utility that deserves some government oversight in its current state and Republicans who want to leave matters entirely in the hands of private providers who they claim know best, and keep the government out of it.

FCC Chairman Julius Genachowski’s regular cave-ins for the benefit of Big Telecom brought heavy criticism from us for his “cowardly lion” act.

Just about the only thing the two parties agree on is reforming the Universal Service Fund, which had until recently been directing millions to keeping traditional phone service up and running even as Americans increasingly abandon landlines.

But differences quickly emerge from there.

The Obama Administration believes broadband is increasingly a service every American must be able to access if sought. The Romney-Ryan campaign hasn’t spoken to the issue much beyond the general Republican platform that market forces will resolve virtually any problem when sufficient demand arises.

Republicans almost uniformly vociferously oppose Net Neutrality, believing broadband networks are the sole property of the providers that offer the service. Many Republicans characterize Net Neutrality as a “government takeover” of the Internet and a government policy that would “micromanage broadband” like it was a railroad. Somehow, they seem to have forgotten railroad monopolies used to be a problem for the United States in the early 20th century. Robber barons, anyone?

President Obama pushed for strong Net Neutrality protections for Americans, but his FCC chairman Julius Genachowski caved to the demands of AT&T, Verizon, and the cable industry by managing Net Neutrality with a disappointing “light touch” for those providers. (We’d call it “fondling” ourselves.)

Democrats favor wireless auctions and spectrum expansion, but many favor limits that reserve certain spectrum for emerging competitors and for unlicensed wireless use. Republicans trend towards “winner take all” auctions which probably will favor deep-pocketed incumbents like AT&T and Verizon. The GOP also does not support holding back as much spectrum for unlicensed use.

Republicans have been strongly supporting the deregulation of “special access” service, critical to competitors who need backhaul access to the Internet sold by large phone companies like AT&T. Critics contend the pricing deregulation has allowed a handful of phone companies to lock out competitors, particularly on the wireless side, with extremely high prices for access without any pricing oversight. The FCC under the Obama Administration suspended that deregulation last summer, a clear sign it thinks current pricing is suspect.

Romney

Opponents of usage-based pricing of Internet access have gotten shabby treatment from both parties. Republicans have shown no interest in involving themselves in a debate about the fairness of usage pricing, but neither have many Democrats.

As for publicly-owned broadband networks, sometimes called municipal broadband, the Republican record on the state and federal level is pretty clear — they actively oppose community broadband networks and many have worked with corporate front groups like the American Legislative Exchange Council (ALEC) to ban them on the state level. Democrats tend to be more favorable, but not always.

The biggest problem broadband advocates face on the federal and state level is the ongoing pervasive influence of Big Telecom campaign contributions. While politicians uniformly deny that corporate money holds any influence over their voting, the record clearly indicates otherwise. Nothing else explains the signatures from Democrats that received healthy injections of campaign cash from companies like AT&T, and then used the company’s own talking points to oppose Net Neutrality.

But in a story of the lesser of two-evils, we cannot forget AT&T spends even more to promote Republican interests, because often those interests are shared by AT&T:

  • AT&T has spent nearly $900,000 on self-identified “tea party” candidates pledged to AT&T’s deregulation policies;
  • AT&T gave nearly $2 million to the Republican Governors Association — a key part of their ALEC agenda;
  • AT&T gave $100,000 to everyone’s favorite dollar-a-holler Astroturf group — The Heartland Institute, which opposes Net Neutrality and community broadband.

Halloween Scare Stories: Controlling the “Spectrum Shortage” Data Tsunami With Rate Hikes, Caps

Phillip Dampier October 25, 2012 Astroturf, AT&T, Broadband "Shortage", Competition, Consumer News, Data Caps, Editorial & Site News, Public Policy & Gov't, Sprint, T-Mobile, Verizon, Video, Wireless Broadband Comments Off on Halloween Scare Stories: Controlling the “Spectrum Shortage” Data Tsunami With Rate Hikes, Caps

Phillip “Halloween isn’t until next week” Dampier

Despite endless panic about spectrum shortages and data tsunamis, even more evidence arrived this week illustrating the wireless industry and their dollar-a-holler friends have pushed the panic button prematurely.

The usual suspects are at work here:

  • The CTIA – The Wireless Association is the chief lobbying group of the wireless industry, primarily representing the voices of Verizon, AT&T, Sprint, and T-Mobile. They publish regular “weather reports” predicting calamity and gnashing of teeth if Washington does not immediately cave to demands to open up new spectrum, despite the fact carriers still have not utilized all of their existing inventory;
  • Cisco – Their bread is buttered when they convince everyone that constant equipment and technology upgrades (coincidentally sold by them) are necessary. Is your enterprise ready to confront the data tsunami? Call our sales office;
  • The dollar-a-holler gang – D.C. based lobbying firms and their astroturf friends sing the tune AT&T and Verizon pay to hear. No cell company wants to stand alone in a public policy debate important to their bottom line, so they hire cheerleaders that masquerade as “research firms,” “independent academia,” “think tanks,” or “institutes.” Sometimes they even enlist non-profit and minority groups to perpetuate the myth that doing exactly what companies want will help advance the cause of the disenfranchised (who probably cannot afford the bills these companies mail to their customers).

Tim Farrar of Telecom, Media, and Finance Associates discovered something interesting about wireless data traffic in 2012. Despite blaring headlines from the wireless industry that “Consumer Data Traffic Increased 104 Percent” this year, statistics reveal a dramatic slowdown in wireless data traffic, primarily because wireless carriers are raising prices and capping usage.

The CTIA press release only quotes total wireless data traffic within the US during the previous 12 months up to June 2012 for a total of 1.16 trillion megabytes, but doesn’t give statistics for data traffic in each individual six-month period. That information, however, can be calculated from previous press releases (which show total traffic in the first six months of 2012 was 635 billion MB, compared to 525 billion MB in the final six months of 2011).

Counter to the CTIA’s spin, this represents growth of just 21 percent, a dramatic slowdown from the 54 percent growth in total traffic seen between the first and second half of 2011. Even more remarkably, on a per device basis (based on the CTIA’s total number of smartphones, tablets, laptops and modems, of which 131 million were in use at the end of June), the first half of 2012 saw an increase of merely 3 percent in average wireless data traffic per cellphone-network connected device, compared to 29 percent growth between the first and second half of 2011 (and 20-plus percent in prior periods).

[…] What was the cause of this dramatic slowdown in traffic growth? We can’t yet say with complete confidence, but it’s not an extravagant leap of logic to connect it with the widely announced adoption of data caps by the major wireless providers in the spring of 2012. It’s understandable that consumers would become skittish about data consumption and seek out free WiFi alternatives whenever possible.

Farrar

Cisco helps feed the flames with growth forecasts that at first glance seem stunning, until one realizes that growth and technological innovation go hand in hand when solving capacity crunches.

The CTIA’s alarmist rhetoric about America being swamped by data demand is backed by wireless carriers, at least when they are not talking to their investors. Both AT&T and Verizon claim their immediate needs for wireless spectrum have been satisfied in the near-term and Verizon Wireless even intends to sell excess spectrum it has warehoused. Both companies suggest capital expenses and infrastructure upgrades are gradually declining as they finish building out their high capacity 4G LTE networks. They have even embarked on initiatives to grow wireless usage. Streamed video, machine-to-machine communications, and new pricing plans that encourage customers to increase consumption run contrary to the alarmist rhetoric that data rationing with usage caps and usage pricing is the consequence of insufficient capacity, bound to get worse if we don’t solve the “spectrum crisis” now.

So where is the fire?

AT&T’s conference call with investors this week certainly isn’t warning the spectrum-sky is falling. In fact, company executives are currently pondering ways to increase data usage on their networks to support the higher revenue numbers demanded by Wall Street.

If you ask carriers’ investor relations departments in New York, they cannot even smell smoke. But company lobbyists are screaming fire inside the D.C. beltway. A politically responsive Federal Communications Commission has certainly bought in. FCC chairman Julius Genachowski has rung the alarm bell repeatedly, notes Farrar:

Even such luminaries as FCC Chairman Julius Genachowski has stated in recent speeches that we are at a crisis point, claiming “U.S. mobile data traffic grew almost 300 percent last year” —while CTIA says it was less than half that, at 123 percent. “There were many skeptics [back in 2009] about whether we faced a spectrum crunch. Today virtually every expert confirms it.”

A smarter way of designing high capacity wireless networks to handle increased demand.

So how are consumers responding to the so-called spectrum crisis?

Evidence suggests they are offloading an increasing amount of their smartphone and tablet traffic to free Wi-Fi networks to avoid eroding their monthly data allowance. In fact, Farrar notes Wi-Fi traffic leads the pack in wireless data growth. Consumers will choose the lower cost or free option if given a choice.

So how did we get here?

When first conceived, wireless carriers built long range, low density cellular networks. Today’s typical unsightly cell tower covers a significant geographic area that can reach customers numbering well into the thousands (or many more in dense cities). If everyone decides to use their smartphone at the same time, congestion results without a larger amount of spectrum to support a bigger wireless data “pipe.” But some network engineers recognize that additional spectrum allocated to that type of network only delays the inevitable next wave of potential congestion.

Wi-Fi hints at the smarter solution — building short range, high density networks that can deliver a robust wireless broadband experience to a much smaller number of potential users. Your wireless phone company may even offer you this solution today in the form of a femtocell which offloads your personal wireless usage to your home or business Wi-Fi network.

Some wireless carriers are adopting much smaller “cell sites” which are installed on light poles or in nearby tall buildings, designed to only serve the immediate neighborhood. The costs to run these smaller cell sites are dramatically less than a full-fledged traditional cell tower complex, and these antennas do not create as much visual pollution.

To be fair, wireless growth will eventually tap out the currently allocated airwaves designated for wireless data traffic. But more spectrum is on the way even without alarmist rhetoric that demands a faster solution more than  a smart one that helps bolster spectrum -and- competition.

Running a disinformation campaign and hiring lobbyists remains cheaper than modifying today’s traditional cellular network design, at least until spectrum limits or government policy force the industry’s hand towards innovation. Turning over additional frequencies to the highest bidder that currently warehouses unused spectrum is not the way out of this. Allocating spectrum to guarantee those who need it most get it first is a better choice, especially when those allocations help promote a more competitive wireless marketplace for consumers.

[flv width=”600″ height=”358″]http://www.phillipdampier.com/video/KGO San Francisco FCC considers spectrum shortage 9-12-12.flv[/flv]

KGO in San Francisco breaks down the spectrum shortage issue in a way ordinary consumers can understand. FCC chairman Julius Genachowski and even Google’s Eric Schmidt are near panic. But the best way to navigate growing data demand isn’t just about handing over more frequencies for the exclusive use of Verizon, AT&T and others. Sharing spectrum among multiple users may offer a solution that could open up more spectrum for everyone.  (2 minutes)

AT&T Hints Wireless Will Be AT&T’s Rural Broadband Solution; ‘Customers Will Pay More’

AT&T: Landlines may be a thing of the past in rural areas served by AT&T.

AT&T customers in the company’s rural service areas are likely to see wireless broadband as AT&T’s answer to rural America’s demand for Internet access.

Speaking on AT&T’s quarterly results conference call, Ralph de la Vega, president and CEO of AT&T Mobility and Consumer Markets yesterday previewed the forthcoming investor and analyst conference scheduled for Nov. 7 to discuss AT&T’s future in the rural landline business.

“I think there is a place in some rural areas where I see the outline, that [wireless] could serve as an alternative to wired broadband,” de la Vega told a Wall Street analyst from Goldman Sachs. “We are going to be talking to you about that on November 7, giving you more details about our thinking of how we can use this technology. And, quite frankly, the customer reception to the technology [is good] in terms of their willingness to pay for great quality data in large, large amounts.”

Some analysts anticipate AT&T is also likely to announce some additional expansion of the company’s U-verse platform to an additional 3-5 million customers that were not previously scheduled to see the service in their area. The build-out would take 12-18 months to complete. But that still leaves up to 15 million rural AT&T customers with either no broadband or the company’s slower DSL service. For many of them, AT&T sees wireless Internet in their future.

At the core of AT&T’s wireless broadband solution is the company’s LTE 4G network. AT&T is stressing it intends to roll out LTE upgrades in both rural and urban areas, unlike its nearest rival Verizon Wireless, which has prioritized upgrades on urban areas. AT&T claims its current network performs at speeds of 5-12Mbps — faster in low demand areas. In areas where AT&T has not bothered to provide DSL service, the company has repeatedly stressed it believes wireless delivers the best bang for the buck.

Unfortunately for rural consumers, access is not likely to come cheap, congestion will reduce overall speeds, and plans will include usage caps that are draconian in comparison to the company’s wired broadband services.

AT&T is a strong believer is monetizing data usage by gradually eliminating the unlimited data plan the company started at the dawn of the smartphone era. The future at AT&T is usage-based pricing.

“I think that more customers we have on usage-based plans the better we are,” de la Vega told investors.

In the last quarter alone, AT&T earned $6.6 billion from its wireless data service — up more than $1 billion (18%) compared to the same quarter last year.  AT&T now takes $26 billion annually to the bank just from its wireless data earnings.

Broadband Usage Cap Buster: Next Gen 8K UltraHD Video Needs 360Mbps

Phillip Dampier October 17, 2012 Broadband "Shortage", Broadband Speed, Community Networks, Consumer News, Data Caps, Editorial & Site News, Online Video, Video Comments Off on Broadband Usage Cap Buster: Next Gen 8K UltraHD Video Needs 360Mbps

Cable companies are starting to lay the groundwork to support the next generation of HD video — first with 4K, an improvement over today’s HD standard, and eventually 8K Ultra High Definition TV — delivering pictures 16 times better than the current 1080p HD standard and coming close to the level of detail supported by IMAX.

The 8K evolving standard, proposed by Japan’s public broadcaster NHK and dubbed Super Hi-Vision, remains years away, but cable operators are preparing their systems to support 4K UHDTV (3840 x 2160 – 8.3 megapixels)  much sooner.

By the time 8K comes into use, most cable operators will rely entirely on a single broadband pipe to deliver video, Internet access and telephone service. To handle that traffic, and the bandwidth UHDTV demands, providers will have to upgrade their systems to support much faster speeds. A single video channel transmitted in 8K UHDTV requires around 360Mbps.

That makes Google’s decision to construct a gigabit broadband network in Kansas City seem less revolutionary and almost evolutionary, considering how quickly bandwidth demand will increase in the next eight years.

The cable industry is now moving fast to finalize the next version of the DOCSIS standard which supports cable broadband. DOCSIS 3.1 is expected to be introduced Thursday at the Cable-Tec Expo. An initial preview seems to suggest the standard will be backwards-compatible with prior DOCSIS versions — good news for those buying their own cable modems — and will support multi-gigabit speeds, if the cable operator decides to dedicate more of its available bandwidth to broadband.

An essential goal of the cable industry is to match or beat 1Gbps, currently on offer from several fiber to the home service providers and Google. Some operators want even more — up to 10/2Gbps capacity, as they consider future speed needs.

But engineering advancements and innovation fly in the face of bean counters attempting to monetize broadband usage with usage caps and usage-based billing. The industry’s justification for usage caps becomes even more tenuous as it moves to a single pipeline for all of its services and treats its cable TV package differently from Internet traffic. AT&T and Bell are already doing that today with their U-verse and Fibe platforms. Both claim their TV channels move over a different network than traditional Internet, but as costs for both continue to decline, that is becoming a distinction with little difference.

Google and a handful of independent or community-owned broadband networks are largely the only ones calling out the cable industry’s bogus claims that consumers don’t need super fast broadband, usage caps are necessary, and broadband speed upgrades are difficult and too expensive. These new competitors have correctly predicted the exponential growth in bandwidth demand and are prepared for it, even as the industry continues to dismiss their competitors’ networks as unnecessary overkill.

But cable’s hurry to DOCSIS 3.1 tells a different story.

Jeff Baumgartner from Light Reading Cable observed cable executives at Tuesday’s annual Cable & Telecommunications Association for Marketing (CTAM) conference, where those attending beat the drum for faster and better networks:

[DOCSIS 3.1] will also focus on the quality of cable’s pipe, reduced latency and other smarts designed to help enable a new set of broadband-based services. Cable’s interest in offering 4K HD services, which offer four times the resolution of today’s HD, was an example that was brought up several times during the session.

The cable industry also hopes to shorten the process of creating the specs and having them turn into deployable products. An average generation of DOCSIS has typically taken three to four years.

“We can no longer do that,” said Phil McKinney, the new president and CEO of CableLabs, but didn’t offer a guess on the anticipated cycle for 3.1. “We have to deliver higher and higher performance.”

[…] And 3.1 is also about the almighty dollar as broadband usage continues to climb. Getting costs down “is a key part of Docsis 3.1,” said Cox Communications Inc. EVP and CTO Kevin Hart.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Light Reading NBCU Ultra-HD Demo 10-12.flv[/flv]

Jeff Baumgartner from Light Reading Cable was invited to a demonstration of 8K UHDTV, which will require much faster broadband networks to handle the super high quality video. (3 minutes)

Bottom-Ranked Suddenlink Upset About Frontier’s Ad Claims Their DSL is Better

Suddenlink is throwing a hissyfit over Frontier’s aggressive advertising.

Now come on, you are both pretty… slow that is.

Suddenlink Communications is crawling mad that Frontier Communications has been hammering the cable company over their broadband speeds, which PC Magazine this week proclaimed were nothing to write home about. The cable operator successfully challenged some of Frontier’s ads with the National Advertising Division of the Council of Better Business Bureaus.

The group recommended Frontier cease making claims that its DSL service offers “dedicated” lines to the Internet in contrast to Suddenlink, which forces customers to share their connection with the whole neighborhood.

Frontier claims Suddenlink’s network can bog down during peak hours, while Frontier makes sure customers consistently get the speeds they pay for.

Many of the ads targeted customers in West Virginia, who regularly tell Stop the Cap! neither provider competing there offers particularly good service.

“Is Frontier kidding?,” says Shane Foster, a former Frontier customer in West Virginia. “I was supposed to be getting up to 6Mbps service and I was lucky to get 1.5Mbps at 2 am.”

Foster says he believes Frontier oversold its DSL network in his area, with speeds slowing even further during the evening and weekends when everyone got online. While Frontier may not require customers to share a line from their home to the company’s central office, congestion can occur within Frontier’s local exchange or on the connection Frontier maintains with Internet backbone providers.

“The technician sent to my house even privately admitted it,” Foster tells Stop the Cap!

Foster switched to Suddenlink, but he is not exactly a happy customer there either.

“Their usage caps suck, the service is slow, and their measurement tool is always broken,” Foster shares. “West Virginia doesn’t just get the bottom of the barrel, it gets the dirt underneath it.”

Frontier Communications says it has been making improvements in West Virginia and other states where it provides DSL broadband. Some areas can now subscribe to 25Mbps service because of network upgrades. Foster says he would dump Suddenlink and go back to Frontier, if they can deliver speeds the rest of the country gets.

“Sorry, but 1.5Mbps is not broadband and with their prices, tricky fees and contracts it is robbery,” says Foster. “They need to clean up their act and I’ll come back. I hate usage caps with a passion.”

Frontier says it will appeal the NAD’s decision. But Frontier might do better advertising its broadband service as usage cap free — something customers consistently value over those running Internet Overcharging schemes.

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