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Carl Junction Partnering for Wi-Fi in Missouri

Carl Junction has been looking for a way to improve connectivity in its southwest corner of the state for several years. Plans for a fiber network did not come to pass, but the community has found a private partner to bring ubiquitous high-speed Wi-Fi to town.

The City Council voted unanimously to approve a deal with Aire Fiber, reports the Joplin Globe, for a basic plan that will offer service for $49.99 per month. Users will not be constrained by data caps, speeds will be up to 50 Mbps download and 10 - 15 Mbps upload, and the network will provide service to each address in town. Installation is $99 per address; rates will be the same for businesses and residences. There are no long term committments. The partners have launched their campaign to get signups online seeking 289 subscriptions to get the project off the ground.

Air Fiber will also provide free Wi-Fi to select locations in town such as the Community Center.

Steve Lawver, Carl Junction City Administrator, told us that the city will receive 10 percent of the gross revenue from the network. The city will purchase the equipment and provide facilities on which Aire Fiber will mount the equipment. Air Fiber will handle installation, management, and all technical aspects required to keep the network up and running.

If the network picks up 10 percent of the market, both partners will break even. KOAM reports that the system will cost from $400,000 - $450,000 to deploy. City officials expect to have it serving the community by mid-summer.

Even though AT&T and MediaCom both have a presence in Carl Junction, neither serve the entire community. City leaders told KOAM they hope to create better consistency of service throughout the community with this partnership:

"We think this is a big step forward for the city — now high-speed broadband Internet connection will be available to all citizens of Carl Junction, no matter what their address is.''

Lawver said Media Com, the city's cable television company, does not offer Internet service in all areas of the town. AT&T only serves parts of the city, he said.

Carl Junction Mayor Mike Moss said, "Reliable, effective and affordable broadband connection throughout the whole city will put us on the same foothold as other cities of our region and the state. It is what will keep us competing with other cities in the 21st century.''

Local media has reported on the project:

Video: 
See video

Community Broadband Media Roundup - March 27

This article is so good, it was hard not to quote the whole thing. Do yourself a favor and check out the article for yourself-- this is exactly why we can’t trust big cable and telephone companies to serve our communities. 

New Homeowner Has To Sell House Because Of Comcast’s Incompetence, Lack Of Competition by Chris Morran at the Consumerist:

Only months after moving into his new home in Washington state, Consumerist reader Seth is already looking to sell his house. He didn’t lose his job or discover that the property is haunted. No, Seth can’t stay much longer because no one can provide broadband service to his address; even though Comcast and CenturyLink both misled him into thinking he’d be connected to their networks and in spite of the fact that his county runs a high-speed fiberoptic network that goes very near to his property.

New homeowner selling house because he can’t get Comcast Internet: 

"I accidentally bought a house without cable," writes man who works at home.
by Jon Brodkin, Ars Technica

While Comcast, the country's biggest cable company, tells the federal government it faces so much competition that it should be allowed to merge with the second biggest cable operator, a government database designed to tell consumers what options they have for Internet service is offering inaccurate information.

The National Broadband Map lets you enter any address in the US to find out what Internet access options are available. The database shows 10 options at Seth's house, including mobile and satellite, but they're all either inadequate for home Internet service or unavailable. 

Google Fiber will leave the duopoly intact and only change the players
by Jesse Harris, Free UTOPIA

TN AG Appeals FCC Decision on Chattanooga, Wilson
(no surprises here)

Tenn. AG Wants Court to Set Aside Municipal Broadband Ruling
by Erik Schelzig, Associated Press

Tennessee fights for its right to squash municipal broadband expansion: FCC faces first lawsuit over vote to preempt state laws that limit competition.
by Jon Brodkin, Ars Technica

Tenn. Attorney General VS. FCC
by NewsChannel 9- WTVC

Tennessee trying to overturn FCC ruling which allows EPB to expand high-speed Internet
by Andy Sher, Times Free Press

Tennessee sues FCC to stop expansion of municipal broadband
by Chris Welch, The Verge

TN v FCC - Petition for Review from TN Attorney General Herbert Slatery
Full Document: Scribd

Net Neutrality 

Internet providers sue FCC in first net neutrality cases
By Andrew Zajac and Todd Shields, Bloomberg News

The filings of both US-Telecom and Alamo acknowledge that their complaints were filed quickly, and possibly too early, because of uncertainty about procedural deadlines.

"We believe that the petitions for review filed today are premature and subject to dismissal," said Mark Wigfield, an FCC spokesman.

The FCC said its rules would take effect after being published in the Federal Register, which hasn't happened yet. 

Republicans Blast FCC's 'Politically Motivated' Net Neutrality Rules
by Wendy Davis, Media Post

AT&T Uses Title II regulation to get out of millions in fees
by Jeff Gamet, Mac Observer

 

Alabama

Gigabit internet service officially launched on areas of Sand Mountain
by Laura Christmas, WHNT News

Farmers Telecommunications Cooperative introduced an internet connection that company leaders say has the fastest speeds in the state — gigabit access — and they’re making it available on parts of Sand Mountain.

Officials say the ultra-fast internet service is the first in Alabama.

Note from ILSR: Opelika, Alabama, was the first to launch the service in the state, but we congratulate Farmers Telecomunications Cooperative for an impressive investment nonetheless.

If a Tiny Telco in NE Alabama Can Go All Fiber, Why Can’t Every Telco?
by Online Reporter

Like others that have deployed all fiber, Johnson said the gigabit service “can transform our communities through advanced learning tools, new entertainment options and telemedicine.” Like many others, he also said its all-fiber network “future proofs our investment for whatever emerging applications our increasingly device-enabled subscribers demand.”

Rainsville company launches new high speed internet service
by Tim Reid, WAAY-TV

New Hampshire

Northampton should explore additional Internet choices
by John Kapitzky, GazetteNet

New York

Municipal broadband would boost Erie County's economy, advocates claim
By Brian Meyer, WBFO, BUffalo

Tennessee

AT&T opposes municipal broadband bill
by Jamie McGee, The Tennessean

Bowling said she understands that connecting Tennesseans in low-density areas is a challenge for privately owned companies. But their profit margin concerns should not prevent municipalities with high-speed fiber networks from connecting residents. The original legislation restricting municipalities' broadband reach was filed in 1999, giving the corporate sector 16 years to reach those rural communities asking for fiber connection from municipalities, she said.

"We've got to get this essential utility if we want to make rural Tennessee economically viable and sustainable," she said. "It's absurd to think that you can compete in the 21st century without high-speed broadband."

AT&T Completes Upgrades Amid Municipal Broadband Debate
by News Channel 9, WTVC

The expansion in Tennessee comes amid a legislative and legal fight over municipal broadband. AT&T opposes pending legislation seeking to allow city-owned Internet providers from offering their product outside their normal service area.

More Broadband News

FACT SHEET: Next Steps in Delivering Fast, Affordable Broadband
by White House Office of the Press Secretary

Data Overload! The Latest Developments in Telecom Policy Matter for Apartments
by Betsy Feigin Befus, Multi-Housing News

Apartment firms say residents and prospects will not sign a lease, or renew one, without access to robust broadband. Not only is reliable Internet access a must, residents want a choice in providers.

Corporate and community operations also hinge on dependable Internet service. From online marketing and leasing to revenue management software and on-site amenities, the apartment industry needs high-capacity connectivity

U.S. Now 27th Globally With Average Speed of 33.9 Mbps
by Karl Bode, DSLReports

While cable operators have been relatively busy upgrading networks, their DSL competitors have not. In fact, companies like AT&T and Verizon have been busy backing away from markets they don't deem worth upgrading, giving cable less serious competition than ever before. So while higher speeds are great, less serious competition means higher prices and worse customer service. And when it comes to companies like Time Warner Cable and Comcast, they already offer the worst customer service across any industry. Fast is great -- we all love fast connections -- but it's increasingly only a part of the conversation in an industry that often doesn't really want to seriously talk about price or availability.

Map: The state of broadband in the states
By Niraj Chokshi, Washington Post

“Many of the efforts to increase connection speeds are being taken at a local/municipal level and may not have an immediate state-wide impact upon completion, but are part of ongoing initiatives that are becoming more widespread across the country,” the company noted.

Throughout the fourth quarter a number of municipalities announced the rollout of gigabit-speed Internet, including those in Arizona, California, Kansas, Michigan, Mississippi, New Hampshire and Oregon.

USDA Announces Funding for Broadband Projects in Arkansas, Iowa and New Mexico

Unions Try To Pressure Verizon Into Expanding FiOS
by Karl Bode, DSL Reports

 

Obviously impacted by Verizon's decision to back away from its fixed-line networks, the Communications Workers of America have launched a new "Where's My FiOS? campaign aimed at putting public pressure on Verizon to expand FiOS further -- and therefore spend a little more money on installations and union employees.

"When it received its franchise from New York City in 2008, Verizon promised FiOS would be available to every NYC resident by 2014," a union flyer being circulated in the city complains. "Now the company says it’s completed its obligations. But customers in many parts of New York City still can’t get FiOS. Instead, Verizon has cut 8500 jobs in New York State and slashed its workforce in New York City by 37% over the last decade."

Grover Beach Chooses Local Partner to Improve Local Connectivity for Businesses

After several years of considering options for a municipal network, the community of Grover Beach, California, is improving local connectivity options through a collaboration with private partner Digital West

According to the San Luis Obispo Tribune, the City struck a deal last fall with the local firm that will provide gigabit connectivity to local business customers. A city staff report states that Grover Beach will install and own a series of conduit that will house fiber owned by Digital West. 

The company, a data storage and web hosting firm located in nearby San Luis Obispo, will manage the fiber network. Digital West will lease conduit space from the city for 5.1% of its gross revenue from its operation of the private portion of the system. The initial lease is for a 10-year term. The company will also transfer ownership of some of the fiber to the city for public purposes. San Luis Obispo (SLO) County also wants to connect its facilities in the area and will contribute to the cost of the project. It appears as though SLO County will use the fiber provided to Grover Beach.

Grover Beach will contribute $500,000; SLO County will contribute $268,000; Digital West will contribute $159,000 to the total cost of $927,000 of the project. The parties agree that the city's contribution will be capped at $500,000. The staff report recommends an interdepartmental loan to finance the city's portion of the conduit installation.

Digital West has been an instrumental player in the city's quest for improved connectivity for several years. The company provides Internet service in SLO County and manages a private network offering connectivity, colocation, and cloud services to commercial clients. 

Grover Beach is also the location of the Pacific Crossing trans-Pacific fiber cable, connecting to Shima, Japan. In 2009, Digital West began working with Grover Beach to find ways to take advantage of the pipe. The city and Digital West have sence developed a Technology Master Plan and an Implementation Plan.

AT&T, Level 3, CenturyLink, and Verizon operate in the area, but Digital West plans to offer more affordable options. The city's vision includes providing more options for the numerous small businesses and to encourage more home based business. The staff report quoted Digital West estimated pricing at $100 per month for 100 Mbps and $150 per month for 1 gigabit service. Similar services in the area run between $250 per month and $500 per month according to the report.

Community Broadband Media Roundup - January 9

Susan Crawford’s latest piece on municipal broadband discussed a real problem that mayors of communities can have a definite impact in helping resolve: the digital divide.

Think of that divide, now amplifying and entrenching existing social problems in your city, as similar to a failure to provide a functional street grid. You don’t have to provide retail services yourself, just as you don’t have to provide the cars and businesses that use your streets. Consider the case of Ammon, Idaho, a small conservative town that built a passive fiber (as opposed to fiber-optic) network over which a host of competing service providers can sell directly to residents. Only a city builds streets; similarly, no private company would have an incentive to serve everyone with basic infrastructure, but every private company will rejoice in having reasonably-priced, unlimited communications capacity as a basic input into everything it needs to do. For more evidence, look at Chattanooga, Tennessee.

In Massachusetts, WWLP’s Anthony Hill reported on the small city of Leyden, whose residents may finally be getting high speed Internet access. The city is supporting a $2 million project, which will be up for a vote by residents this coming spring. 

The Monroe Courier reported this week on how 25% of Connecticut towns could soon be a formidable force against big cable. The cities are joining together to demand better connectivity and to make the state the nation’s first Gigabit State. Our story on Connecticut here.

“The response from our state’s towns has been overwhelming,” Consumer Counsel Katz said.  “I’ve heard over and over that municipal officials are frustrated with available internet speeds and the cost to their towns of upgrading internet networks.  These 46 municipalities have made the decision to take control of the situation.  From the high school to the town hall to the library, the demand for faster internet speeds and greater bandwidth is ever-increasing. Businesses face the same challenges, and we know more residents than ever are asking the same question: How do we get faster, cheaper, more reliable internet? Partnering with the private sector to examine the best way to build and finance these Gig networks is the first step in making them a reality in Connecticut.”

From California’s Mendocino County, we found yet another reason why communities should consider municipal fiber: residents there are still dealing with damage inflicted after an AT&T broadband outage left people with out phone and Internet for nearly 45 hours! Adam Randall with the Ukiah Daily Journal reported that officials say the outage was due in part to AT&T’s refusal to upgrade its copper wiring.

“AT&T's unwillingness to address repair issues in Mendocino County in a timely manner is something that has continued to irk [chairman of the Broadband Alliance of Mendocino County, Jim] Moorehead, along with other officials, including Congressman Jared Huffman.

Some of the affected customers are now experiencing landline outages, with the biggest concern being those who are not able to connect with 911 in case of an emergency, Moorehead said.”

Joan Engebretson wrote about North Dakota’s surprisingly high fiber-to-the-home percentage

…because North Dakota is so rural, 96% of the state (on a geographic basis) is served by one of 18 small rural telecom companies – and those companies have made deploying FTTH a high priority.

The small companies’ rural status also has enabled them to benefit from several USDA programs. According to a report released in late December, the USDA has invested more than $330 million in broadband in North Dakota since 2009…

Brian Heaton with GovTech covered Iowa governor Terry Branstad’s plan to “connect every Iowan.” 

“For Iowa to remain competitive in an increasingly global marketplace, we must connect every acre to high-speed broadband Internet,” Centers said. “Not only does that mean connecting agriculture to high-speed Internet, but it also means making sure Iowa’s schools have the ability to give our children access to educational resources available online and main street businesses can connect with the global marketplace.”

Google and Title II

The FCC’s decision on reclassifying the Internet as a utility could be music to Google Fiber’s ears.

TechDirt’s Karl Bode again weighed in on how ISPs use utility pole rights to block both private and municipal broadband projects:

Bureaucratic pole attachment rights negotiations are already sometimes annoyingly cumbersome, but they're also one of many ways incumbent ISPs thwart competitive efforts. Municipal broadband efforts in Utah, for example, were hindered by a litany of Qwest (now CenturyLink) lawsuits aimed at blocking local community ISP Utopia from having access to the company's poles. In Austin, where AT&T owns around 20% of the city's utility poles, Google Fiber ran into some initial obstacles getting pole attachment rights because AT&T argued Google wasn't officially a telecom company. 

And Martin Blanc with BidnessEtc continued to explain how the search engine giant would benefit greatly from reclassification as Title II.  

“[Google Director of Communications Law Austin Schlick] told the FCC in a letter last week that such reclassification will promote competition in the industry and induce more investment in the sector, and will also promote the provision of broadband Internet to more markets.”

Reid Schram with Epoch Times broke it down to Google's bottom line:

“Google is asking for this because as they’ve been trying to roll out their high speed Google Fiber service to different areas, they have run into major problems getting permission to access things like utility poles and cable carrying conduits. AT&T and Comcast have long been afforded ease of access to these key pieces of infrastructure, as they are classified as a cable tv provider, and thus a utility."

2015

A couple of writers this week commented that America’s slow-to-the-draw connectivity may be a good thing– it could serve as a wake up call for communities that want to take back their local authority. 

Bruce Kushnick predicted 2015 will include a lot of hair-pulling by cable and phone customers: 

... There is one shining light -- A wise friend of mine once said, "It has to get so bad that people actually notice." With 4 million people commenting about Net Neutrality, the so called "ISPs" being considered the 'most hated companies in America' in 2013 and Time Warner and Comcast being the most hated companies in 2014 -- out-stripping every other industry, or that the major media actually used the term "Title II"-- maybe, just maybe, the sheep have woken up from their slumber.

But, right now, for communications, the year 2015 looks like it will just suck to be a customer of America's telecom-cable trust."

The Washington Post’s Brian Fung reported on the proposed new definition of broadband: 25 Mbps. He said that Wheeler’s recommendation recognizes that the government is finally catching up to technology advancements:

“In 2012, the most recent year for which the FCC has published data, 94 percent of Americans already had access to download speeds of at least 3 Mbps. While that may have been enough for most people then, it represents the bare minimum now."

Top of the Dung Heap Awards 

Tech Dirt’s Karl Bode and Erika Rawes with The Wall Street Cheat Sheet listed the Top 10 WORST businesses in 2014. Spoiler Alert: SEVEN out of the 10 from Big Telecom. We could have been knocked over by a feather by shear surprise… not really.

"It’s frustrating. And although the customer service rep claims to “understand you are frustrated today,” there is only so much these reps can do, given they are trained to utilized the most inexpensive and cost-effective potential “solutions” for the business, as opposed to doing what’s easiest and most convenient for the customer.

On top of the fact that customer service reps are often trained to lean toward inexpensive solutions that drive customers crazy, most reps are also working for sub-par wages. According to the Bureau of Labor Statistics (BLS), customer service reps are paid median hourly wages of around $14.85 per hour and those on the lower end of the wage scale earn less than $9.50 per hour. However, in 2001, the median hourly wage for these representatives was $12.23 — or $16.31 in today’s money.

Not only have wages declined for these workers, automated systems and online systems have reduced the need for them. Sure, customers want human interaction, but they also want that interaction to be friendly and productive. This personal and friendly interaction is something so many businesses lack."

But you can take (some) solace in this: you may now find it easier to complain about that telephone and cable service! 

The FCC unveiled its new “one-stop shop” complaint site for filing and tracking complaints about robocalls and fraudulent charges. Teresa McUsic with SavvyConsumer gave a full list of where and how to complain early, and often.

Mendocino County Analyzes Losses From Communications Outage

In November, the Broadband Alliance of Mendocino County (BAMC) released a report documenting the results of an online survey to determine the effects of a summer communications outage. The Willits News reported that the survey revealed losses of over $215,000 in the county, although actual losses likely reach the millions.

In August, an accident wiped out Internet, telephone, cell, and 911 services for eight communities along the coast in Mendocino County. AT&T aerial fiber optic cable was destroyed. Approximately 17,400 people lost access to 911 services. Depending on the location, 911 service was out for 24 to 45 hours.

Only about 6.5 percent of the people in Mendocino County participated in the survey according to the report. Ninety-five percent of those responding said they were directly impacted.

The article quotes the BAMC report:

According to the BAMC, the outage was lengthy because "the AT&T backbone fiber network was not configured to be redundant nor diverse with protection routing. This was not due to the lack of fiber in the surrounding routes. AT&T did provide diverse fiber and protection for their cable station, but elected not to provide the same for the surrounding community and emergency services."

Mendocino County has been working for several years on an initiative to improve connectivity along California's north coast. They are now part of a larger collaboration called the North Bay/North Coast Broadband Consortium.

The incident in Mendocino County is much like a similar event in 2010 in which Cook and Lake Counties in Minnesota were cut off in the same way. At that time, a single Qwest line was cut and, since there was no redundancy, 911 service, Internet, and many business services came to a screeching halt.

Yet another reminder of the risks that come with depending on distant mega-corporations for essential infrastructure.

Community Broadband Media Roundup - December 19

This was a big year for local governments and many year-end discussions have noted the role of cities in expanding high quality Internet access. Among them, The Free Press' Timothy Karr:

The rise of homegrown Internet infrastructure has prompted industry lobbyists to introduce state-level legislation to smother such efforts. There are at least 20 such statutes on the books. But in June, the FCC stepped in with a plan to preempt these state laws, giving communities the support they need to affordably connect more people.

and Broadband Breakfast's Drew Clark:

...viewed from the vantage point of the future, the far more significant development will be the emergence of opportunities outside of Washington for high-capacity broadband networks. It’s a world in which cities and municipalities are playing the leadership role...

The most direct crystallization of our municipal broadband moment is the new non-profit coalition dubbed Next Century Cities. Launched less than two months ago in Santa Monica, it now boasts membership from 50 cities, representing 25 states. From Los Angeles to communities along the Pacific Northwest, from Lafayette in Cajun country to Chattanooga, and from patrician Boston to a city that got its start as a cow town, Kansas City, each of these 50 cities have different motivations and approaches to Gigabit Networks.

Almost 60% of the United States has access to 100 Mbps Internet connections, but only 3% can get a gig. Ars Technica's Jon Brodkin and Anne L. Kim from Roll Call both take a look at a new report from the Department of Commerce this week. 

The ESA report titled, “Competition Among U.S. Broadband Service Providers,” finds that far more competition exists at slower speeds than at higher speeds (only 8% can choose from at least two 100 Mbps providers.) 

"This report gives policymakers a deeper understanding of what is occurring in the ISP marketplace," says U.S. Commerce Department Chief Economist Sue Helper. “We know that competition typically drives down prices. And we also know that increasingly, higher Internet speeds are required for optimal functionality of popular, high-bandwidth computing applications. As more and more commerce and information move online, we risk further widening the digital divide if access to affordable, higher speed Internet doesn’t keep pace.”  

Anders Bylund with Motley Fool posted an article this week about why AT&T might nervous about the days to come. Bylund asks whether municipal broadband projects like those in Chanute, Kansas, and Google Fiber’s entry into the market are rendering AT&T obsolete. 

“You might think that AT&T would shrug its shoulders over new competition in such a laughably small market. But the company sees this as the beginnings of a much larger threat: Allow one high-sped service at incredibly low prices, and other cities will surely follow. Soon enough, this tiny insurgent will have turned into a nationwide trend, putting enormous pressure on AT&T's existing business model.”

Small towns, larger cities, counties and cooperatives all over the United States are catching on. 

In Renville, Nicollet and Sibley Counties in rural Minnesota, residents have a lot to look forward to in 2015. Cassandra Sepeda with KEYC Mankato reported on RS Fiber’s growing momentum. The fiber-to-the-home initiative could reach more than 6,000 residents by 2016. The groups financial planner, and local business man, Phil Keithahn works from home and is definitely on-board:

"...That's what this does. It levels the playing field for people who live and work in rural America with people who are in the twin cities. So it's an economic development tool for south central Minnesota."

In Virginia’s rural Bedford County— a cooperative partnership could soon connect thousands of homes. Last week the county’s board announced they would collaborate with Mid-Atlantic Broadband Cooperative to get high speed Internet in the area.

“[Internet infrastructure] is a public utility build-out — the biggest one so far in this century — and it’s pretty much equal to the rural electrification that happened at the turn of the last century,” said Allen Boaz, who presented the advisory proposal to the supervisors.

“That’s how important I believe it is, and a whole lot of other people are with me.”

The county’s economic development director says that residents might be connected within six months.

And, speaking of development, 10 Connecticut communities are rolling forward with high speed Internet goals in mind. According to Brian Fung with the Washington Post, half of the state's population could some day be wired for high-speed, fiber-optic Internet. Stephen Singer with the Associated Press writes that while the cities have committed to wanting businesses to build and finance Internet service, they don't want to get into the business themselves: 

Among the goals are to create a gigabit-capable network for targeted businesses and residential areas with a "demonstrated demand" to drive job creation and stimulate economic growth. The call [out to a business or partner] also seeks to provide free or heavily discounted Internet service of between 10 and 100 megabits to underserved and disadvantaged residential areas and deliver gigabit Internet service at prices comparable to other gigabit fiber networks in the United States.

Students in South Bend, Indiana are now fiber-connected. Metronet's grant program helped pay for the high-performing school to connect to Metronet's dark fiber network. Before the upgrade, students often had to do their Internet research from their own homes. 

McHenry County’s Northwest Herald, and Charleston, South Carolina’s The Post and Courier, put their support behind competitive Internet this week. In Charleston, the paper threw down on South Carolina’s 2012 law that prohibits public networks, saying that the state cannot afford to continue to be left behind in terms of speed and connectivity: 

“South Carolina communities with limited or inadequate bandwidth access stand virtually no chance of attracting industries that increasingly rely on high speed Internet connections to do business. Gov. Nikki Haley's record on job creation is strong, but her decision to sign the 2012 bill dealt a serious blow to the state's ability to attract investments.

Perhaps regulating the Internet under a labyrinthine federal communications code would indeed slow innovation and hurt the economy. But preventing competition - the inevitable effect of South Carolina's law - can be equally harmful.

Companies like Comcast, Time Warner and AT&T operate like monopolies in too many markets, and monopolies require rules to prevent actions that harm consumers and other businesses.”

The Star Tribune and MSP Business Journal are reporting that Chaska’s city-owned Internet service will be switched off next year. The city opted out of the wireless Internet offerings rather than pay the $3 million to upgrade. Since it launched in 2004, the city has seen a rise in competition, with more providers offering service. 

“We never wanted to compete with the private sector,” Podhrasky said. “We just wanted to make sure our residents had access to [wireless Internet] until there were more options out there.” He said the city concluded the time has come, with people now having a variety of choices, including bundled services at high speeds through cable modems at prices close to chaska.net’s."

The city will continue to provide its fiber service to the school district and one data center.

And Susan Crawford came out another good piece: “The 3 Big Myths that are holding back America’s Internet.”

TING!

Charlottesville, Virginia could soon be home to what one alternative wireless carrier calls, “Google Fiber lite.” Ting announced this week they will build their own 1Gbps fiber-to-the-premises when they purchase Blue Ridge InternetWorks to serve Charlottesville customers— and, as Sean Buckley with Fierce Telecom reports, they don’t plan to stop there. 

"We'll be on the lookout for the next town or city in which we can lay down roots," wrote [Andrew] Moore-Crispin, [senior content manager at Ting.] “Roots made of fiber optic cable and ultimately leading right to the home. If you'd like to see Ting Internet in your town, let us know on the Ting Internet page… We admire what Google is doing with and for gigabit fiber Internet access, but for the Internet giant, access is more of a side project," wrote Moore-Crispin. "Also, Google is a lot of great things but human scale isn't one of them."

Jason Koebler with Motherboard covered the story as well

"When we got into mobile, we just took the same business processing and billing and applied them to mobile, which was suffering from incredibly high pricing and a low level of service," he added. "We thought, where else can we take these things we've gotten good and apply them to?"

Hypocrisy Department

And Time Warner Cable is fighting to keep its Broadband expansion projects private.

"'As outlined in our appeal, disclosure of Time Warner Cable build-out plans, including details like completion dates and the areas and number of potential customers served, would clearly harm our competitive position,' Time Warner Cable spokesman Scott Pryzwansky said Monday."

Time Warner Cable and other private providers regularly demand this information from local government providers. This is a frank admission that local governments operate from a position of disadvantage relative to private sector providers.

Chanute Receives State OK to Bond for FTTH Deployment

The Kansas Corporation Commission (KCC) will allow the city of Chanute move forward with its plan to serve residents and local businesses with its municipal network reports the Wichita Eagle. KCC staff had recommended that the community, which has built out a network over the course of decades, receive KCC approval. 

In keeping with an antiquated 1947 state law, K.S.A. 10-123, the city needed KCC approval to issue the revenue bonds. In keeping with the statutory requirements, the KCC found that the expansion is necessary and appropriate for the city, its consumers and investors. The KCC also also determined that the expansion will not duplicate an existing utility service.

In its filing [PDF], Chanute indicated that its network is an essential part of the local economy and the community's future:

Chanute is a rural community, and like all rural communities, access to broadband is fundamental to the well-being of its citizens and even to the survival of the community itself. Chanute does not need to convince the Commission of the importance of having access to a high- speed broadband network. The Commission is well aware of that need. The investments contemplated for Chanute's broadband network are necessary and appropriate to allow Chanute to meet that need in its territory.

As the city points out, incumbents AT&T and Cable One, do not offer anything close to the level of service of the planned gigabit FTTH network. As we cover in our 2012 report on Chanute, AT&T and Cable One seem to have no interest in serving the community beyond minimum expectations. It was the need for better services that inspired the city to build out its infrastructure and offer services to local businesses.

Prior the the KCC ruling, the Wichita Eagle reported that AT&T requested and obtained permission to intervene in the proceeding. AT&T's subsidiary Southwestern Bell Telephone Company (SWBT) petitioned to intervene in November [PDF], stating:

SWBT's interests and those of its customers may be affected by any order or determination of the Commission as may hereafter be adopted in the above- captioned proceeding.

AT&T told the Eagle:

“Any decision made by the KCC could impact AT&T’s business operations in the area, which is why we asked to intervene in the proceeding,” the company said in a written response to questions from The Eagle. “AT&T remains interested in both broadband issues and the work of the KCC.”

Larry Gates, Director of Utilities in Chanute, 
told the Eagle that the city is ready to issue the revenue bonds and begin connecting customers as soon as the KCC approves the request.

In their filing, the city also commented on the the outdated nature of the state law requirement. From the Eagle article:

In the commission case, Chanute is arguing that the 1947 law was actually designed to protect municipalities from defaulting on bonds because of private-sector competition, not to protect private-sector providers from competition with local government.

Since then, lawmakers and regulators have almost entirely deregulated telecommunication services, counting on competition in the marketplace to keep providers from charging too much or providing substandard service.

“This reasoning (behind the 1947 law) reflects an environment where construction of a telecommunications network was considered a natural monopoly, where one company could supply an entire market at less cost than two or more companies,” Chanute’s filing said. “That is no longer the case in the telecommunications marketplace.”

The 1947 law “does really sort of fly in the face of everything that has been said about competition,” [David Springe, chief consumer counsel for the Citizens' Utility Ratepayer Board] said. “It’s either a competitive world and you can stand on your own two feet, or it’s not.”

KCC staff agreed with Chanute. At the time the law was implemented, it was meant to protect the interests of the monopolies that served the rural areas, but the Telecommunications Act of 1996 shifted policy to encouraging competition.

There are other providers in the area, writes staff, but none of them can provide the caliber of services Chanute will offer. Because AT&T and Cable One do not offer services anywhere near the gigabit FTTH planned by Chanute's broadband utility, there would be no duplication of services.

Staff also agrees with the city, when it analyzes the need for the expansion. From the staff report [PDF]:

Upgrading Chanute's facilities would not only benefit the citizens of Chanute but its community anchor institutions and community business partners as well. In addition, by improving and expanding upon the fiber optic network currently in place by Chanute, Chanute is protecting its current investment. Staff therefore believes the expansion plans as contemplated are appropriate for the municipality and its consumers, and for the protection of its investors.

For a look back at Chanute's story, listen to episode #16 of the Community Broadband Bits podcast. Chris interviewed Larry Gates and then City Manager JD Lester.

Community Broadband Media Roundup - December 12, 2014

This week in Community Broadband networks... partnerships, cooperatives, and going-it-alone. For a background in muni networks, check out this recent article from FiscalNote. The article highlights Kansas and Utah's fight for improving beyond the minimum speeds. 

Speaking of minimum, the FCC announced its new "rock bottom" for regulated broadband speeds. Ars Technica's Jon Brodkin reports that despite AT&T, Verizon, and the National Cable and Telecom Association's protests, ISPs that use government subsidies to build rural broadband networks must provide speeds of at least 10 Mbps for downloads.

Rural Americans should not be left behind those who live in big cities, the FCC announcement today said. "According to recent data, 99 percent of Americans living in urban areas have access to fixed broadband speeds of 10/1, which can accommodate more modern applications and uses. Moreover, the vast majority of urban households are able to subscribe to even faster service," the FCC said.

The FCC plans to offer nearly $1.8 billion a year to carriers willing to expand service to 5 million rural Americans. 

This is a step in the right direction, but we are alarmed to see a download:upload ratio of 10:1. People in rural areas need to upload as well as download - our comments to the FCC strongly recommended raising the upstream threshold as well and we are very disappointed to see that remain a pathetic 1 Mbps.

And, from TechDirt's own "who can you trust if you can't trust the phone company department," Karl Bode found that a study by the AT&T-funded Progressive Policy Institute concluded that if Title II regulations were passed, the nation would be "awash in $15 billion in various new Federal and State taxes and fees. Bode writes that the study cherry-picked and conflated data:

The reality the broadband industry doesn't want to acknowledge is that very little changes for it under Title II if carriers aren't engaged in bad behavior. The broadband industry is fighting Title II solely to protect potential revenues generated from abusing uncompetitive markets. That this self-serving behavior is being dressed up as concern about the size of your broadband bill is the industry's best comedic work to date.

Cities Pursuing Community Broadband

Nancy Scola reported on the growing collective of "Next Century Cities." 

[The group's] early expansion is a signal of what seems to be a shift in the way Americans are thinking about high-speed Internet access: the idea that cities will the battlegrounds for the playing out of the broadband debates. One effect of these cities working so closely with Google as it rolls out its fiber network in places like Kansas City and Austin is a realization that mayors can take broadband into their own hands -- whether that's through a municipal solution like Chattanooga's gigabit network or through partnering with traditional Internet service providers such as Comcast or Time Warner Cable.

Other partnerships are also moving muni networks forward

At the same time as the Next Century Cities announcement, the Department of Agriculture announced $190.5 million in grants and loans for rural broadband and telecommunications infrastructure.

"Modern telecommunications and broadband access is now as essential to the businesses and residents of rural America as electricity was in the 1930s," said Agriculture Secretary Tom Vilsack, in a USDA statement. The funding will go towards providing, “broadband in areas that lack it, help rural-serving public television stations begin using digital broadcasts and support other telecommunications infrastructure improvements."

Jason Meyers with LightReading explains why utility companies (like EPB in Chattanooga) are positioned so well to be home to gigabit networks.  

Several communities are considering local options for networks. Some are just in the earliest study phases: Medina County and Athens in Ohio and Walla Walla, Washington are among them. RS Fiber in Minnesota has approved its updated business plan and financial strategy, meaning it can move forward with its cooperative network, and several communities in Northeastern Oklahoma are pursuing a cooperative plan as well.

It looks like the push for local options in Colorado is having an affect on other communities. Aspen and Pitkin County have submitted requests for proposals-- perhaps inspired by Longmont, Boulder, and the rest of the communities we reported on after the November referenda.  

Meantime, Bruce Kushnick with the Huffington Post reported this week that communities all over the country have been paying for fiber infrastructure upgrades, but have seen almost none of the investment. 

Starting in 1991, the phone companies went state-to-state to get changes in state laws, known as "alternative regulations" to charge customers for the replacement of the copper wires that were part of the state-based utility, like Verizon New Jersey, with a fiber optic wire capable of 45 Mbps in both directions, the standard speed for broadband in 1992.

And though it varied by state, this fiber optic wiring was to be done everywhere -- urban, rural, and suburban, rich and poor communities and cities, and even the schools were to be wired in some states. All customers were paying for the upgrades of this future fiber optic broadband utility so they all deserved to be upgraded.

Check it out and see if your community is on the list. And if you think this isn't the first time you've heard about this Big Ripoff, you're right-- We interviewed him on Community Broadband Bits Episode 28

Net Neutrality

This week, New Jersey's Cory Booker and Maine's Angus King defended net neutrality on CNN. 

The Internet is one of the most powerful tools on the planet. Across the globe, millions of people connect every minute of every day to harness its wealth of information, exchange ideas in an open platform and foster the type of innovation and entrepreneurship that spurs economic growth.

And today, it's never been more at risk in the United States.

Washington Post's Brian Fung reported that there are hints that the telecom industry is preparing for a new Title II reclassification. Verizon's CFO Francis Shammo said, in a nutshell, that the company would do just fine if the FCC imposed the stricter regulations. 

"I mean to be real clear, I mean this does not influence the way we invest. I mean we're going to continue to invest in our networks and our platforms, both in Wireless and Wireline FiOS and where we need to. So nothing will influence that. I mean if you think about it, look, I mean we were born out of a highly regulated company, so we know how this operates.

Despite this very clear statement, we expect to see still more claims from groups like the AT&T puppet Progressive Policy Institute that Title II would somehow cause major carriers to invest even less in networks across the United States. Though, if the market were half as competitive as they claim, any firm that invested less would be in big trouble! How do we know when they are lying? Well, are their lips moving?

Community Broadband Media Roundup - December 5, 2014

After successfully fighting a Kansas state law proposed in February that would have outlawed community networks entirely, the city of Chanute is being required to follow an outdated 1940s law that requires them to ask permission to move forward with a bond initiative that would fund a high speed Internet network to businesses and residents. And, AT&T is officially intervening in the city’s efforts. 

Our most favoritest headline of the week about this story comes from Brad Reed with BGR: “AT&T wants to know why a town is building a 1Gbps network when it already offers 6Mbps DSL." Yah, Chanute, what gives?!

Dion Lefler with the Wichita Eagle reported this week that the city has been ordered to follow a 1940 state law requiring it to get permission to sell bonds that would fund a project to provide the town’s 9,000 residents with high speed Internet. 

Chanute officials say the law requiring commission permission to expand is outdated, because it was written in the days when the telephone company was a monopoly… “AT&T is the incumbent telephone company and Cable One is the incumbent cable TV operator,” the city’s filing to the commission said. “Neither of those providers offers the level of service throughout Chanute’s utility service area that Chanute will be able to offer its citizens as a result of the investment planned for Chanute’s network. As such, there will not be a duplication of existing services, even if such a consideration were still relevant today.

Kate Cox with the Consumerist goes further:

AT&T has a long track record of very vocally opposing even the mere idea of municipal broadband projects. The company has worked hard and spent lots of money helping enact state laws that prohibit public broadband expansion.

They have also argued that not only should public fiber projects be banned any place that they (or anyone else) already serves, but that those projects should be banned anywhere they might choose to do business later on.

And Jon Brodkin with Ars Technica noted the real cause for AT&T’s worry: the city would charge people just $5 more per month for Gig service than AT&T does for its bargain-basement 6mbps service. Yikes!

Wendy Davis with MediaPost covered the story as well:

If the new network moves forward, residents would have every reason to defect from AT&T in favor of the new service -- unless AT&T can step up its offerings.

So far, AT&T hasn't shown an inclination to do so in Chanute. While AT&T plans to expand its fiber optic network to dozens of cities, Chanute isn't one of them, according to advocacy group Public Knowledge. That organization today issued a public call for AT&T to avoid putting up obstacles to a new fiber network. “No one should deny rural America the choice of building high-speed broadband networks in a world where the Internet is so vital to a community’s growth.

MSMolly with FireDogLake offered her insight this week on the delicate balance ISP’s walk when it comes to regulation:

AT&T isn’t opposed to government handouts, though, as long as they are flowing to the private sector. The company argues that community broadband networks “should not receive any preferential tax treatment,” and that only private companies should be given special treatment. AT&T said, “Indeed, any tax incentives or exemptions should be provided, if at all, to private sector firms to induce them to expand broadband deployment to unserved areas.”

AT&T has been going state by state paying asking state lawmakers to get rid of most remaining consumer protections, such as those requiring continued 911 access to the elderly, so it can get out of DSL markets it doesn’t want to upgrade.

But AT&T isn’t all bad, right? I mean last week we reported that the telecom giant would back down on its threats to halt fiber rollouts, that’s good, right?

Thomas Gryta with the Wall Street Journal and Brian Fung with the Washington Post say that while AT&T might have said it would pull its investments in fiber if they didn’t get more certainty from the FCC about net neutrality, what they really meant was...

The issue is complex for AT&T. As a major Internet service provider, it has a deep interest in how the Internet is governed, but the company also needs approval from the commission for its pending acquisition of satellite broadcaster DirecTV.

In other words, “We didn’t mean to ruffle any feathers before the FCC approves our merger.”

Community Broadband Communities

The Slog’s Ansel Herz is at it again. He is frustrated that Seattle has not yet invested in a municipal fiber network. The city’s chief tech officer, Michael Mattmiller says the study he’s commissioning on muni broadband will likely not be complete until April (these things cannot be completed overnight!).

The threat of competition is giving cities all over the country more power in franchise agreement talks. Bill Neilson with Broadband Reports cites Lawrence, Massachusetts; Lexington, Kentucky; and New York City for using their franchise talks to get more from incumbents, or head for the door. 

After being told for years that previous franchise agreements would magically increase local jobs and improve customer service (which never occurred on either front), some cities are now demanding guarantees in writing before agreeing to a franchise agreement. Now, some cities are also demanding that franchise agreements be reduced in years so that cities may see just how well the cable providers are acting during the agreed upon years.

Residents in Torrington, CT are one step closer to fiber in their city. The council approved using part of $1.7 million in Nutmeg Network grant money set aside to fund a fiber optic connection for community anchors. The network would run alongside its existing AT&T connection.

Alaska's Statewide Broadband Task Force is up and running. The group is committed to bringing 100 mbps speeds to every household in Alaska by 2020. Carey Restino with the Arctic Sounder has the story:

"We have reached a point in the development of modern communications wherein the Internet is firmly woven into our fabric of everyday life. America is in a race to the top in order to compete in the globalization of trade and development," the report concludes. "Alaska is part of this race. The same factors that make broadband deployment difficult in Alaska — geographic remoteness, lack of roads, high costs — also mean that Alaska, more so than other states, has the most to gain from making sure that affordable and reliable high-speed broadband is available to all its residents. Very soon, social pressure will be too great for government and civil society not to act, whether collaboratively or alone. A clear plan is in the best interest of the state."

Despite its relatively small dollar amount, communities in Minnesota are competing for the state's $20 million broadband kitty. Jenna Ross with the Star Tribune:

[Ron] Brodigan, owner of the Snowshoe Country Lodge on Sand Lake [near Two Harbors], gets Internet service with download speeds of 5 megabits per second — “almost adequate,” he said. Once the county’s fiber-to-the-premises project reaches him, he expects to pay $80 a month for 30-megabit service. “It’s going to be a boon when we get it,” he said. “But it’s been setback after setback,” he said, referring to challenges from cable companies and other delays. But, he added, “they’re really humping now.”

Local Businesses Suffer in Tennessee as State Prevents Chattanooga Expansion

As our readers know, the FCC is currently considering petitions submitted by Chattanooga and Wilson, North Carolina. Both communities want the ability to expand their ability to offer advanced telecommunications services, contrary to existing state anti-muni laws. As we glance through the comments, we notice that ISPs, advocacy groups, and local governments are not the only commenters with a vested interest in the outcome. 

There are also compelling stories from individuals, local businesses, and organizations that are looking for better options. In some cases they have one provider but are unhappy with the service so support municipal network expansion. In other cases, they have dial-up (or no service at all) and are maddeningly close to an EPB or Greenlight connection but state restrictions forbid service to them.

We recently spoke with Joyce Coltrin, owner of J & J Nursery located on the edge of Cleveland, Tennessee, in Bradley County. She is about 32 miles from the heart of Chattanooga but only 3/8 mile from the edge of the EPB fiber optic service area. Her only choice for Internet at her nursery is AT&T dial-up. Joyce tells us:

"I could walk right to it - it is the closest provider and we don't have any broadband access!"

Joyce submitted comments early in the proceedings. She choose to send her comments via snail mail because her email is so unreliable.

For the past 15 years, Joyce and other people in her community have requested better service from AT&T. They were told repeatedly it would be 3 months, 6 months, 9 months until they would get upgrades but it never happened. They finally decided to look for connectivity elsewhere. Joyce and her neighbors approached their electric provider, Volunteer Energy Cooperative, in the hopes that they could work with EPB to bring services to the area. Volunteer and EPB had already discussed the possibility, but when the state law was passed that prevented EPB from expanding, the efforts to collaborate cooled.

Joyce uses her cell phone to access the Internet while she is at work. Like some of the other business owners in Cleveland, Joyce pays $200 - $300 per month because she is constantly running over data caps to conduct business. There are others who live or work in areas near her that do not have cell phone coverage.

Another local business owner that runs a poultry business almost lost a large number of chicks when their alarm system, dependent on wireless Internet access through a Verizon "MiFi" personal hotspot, failed during cold weather.

Joyce does not plan on expanding to an online store but she finds it difficult to adhere to state business regulations without better connectivity. For instance, she must do business taxes online from home, where she has a little better Internet access.

She knows that Tennessee's anti-muni laws came from giant cable and telco lobbying efforts. She also recognizes the negative impact it is having on Cleveland. In her comments to the FCC, Joyce writes:

College students drive to McDonald's to use Wi-Fi and work from their cars to do homework and projects. This situation is choking business and making our children third class citizens.

I have always been for free enterprise, but when some businesses win due to unfair protection, free enterprise dies.

To read the rest of Joyce's comments, visit the FCC website.