News

Posted October 15, 2010 by christopher

In all the talk of the need for competition in broadband (or in the mobile space), there is remarkably little attention paid to the difficulties in actually creating competition. A common refrain from the self-interested industry titans (and their many paid flacks) is: "keep the government out of it and let the market decide."

Unfortunately, an unregulated market in telecom tends toward consolidation at best, monopolization at worse. Practicioners of Chicago economics may dispute this, but their theories occur in reality about as frequently as unicorn observations. In our regulatory environment, big incumbents have nearly all the advantages, allowing them to use their advantages of scale to maintain market power (most notably the ability to use cross-subsidization from non-competitive markets to maintain predatory pricing wherever they face even the threat of competition).

Posted October 7, 2010 by christopher

Advocates for community broadband networks in urban areas that already have cable and DSL options are often asked why the community needs something better. Aside from the many benefits in terms of reliability and symmetrical offers, we do need faster connections. Those who doubt that may want to remind themselves of a great list of very smart people underestimating technology.

1876 “The telephone has too many shortcomings…the device is inherently of no value to us.” Western Union

1897 "Radio has no future" Lord Kelvin, President, Royal Society

1899 "Everything that can be invented has already been invented.”Director, U.S. Patent Office

1927 “Who the hell wants to hear actors talk?” H.M. Warner, Warner Brothers

1936 “Television won’t matter in your lifetime or mine.” Rex Lambert, Editor, Radio Tim

Posted October 6, 2010 by christopher

In Virginia, Danville's open access all-fiber network, nDanville, currently serves only businesses and large clients. In the early summer, Danville Utilities decided to recommend expanding the network to between 2,000 and 3,000 residential homes with a 10 year, $2.5 million loan.

As Danville Utilities operates the network purely on a wholesale basis, it would not provide services directly. From an article leading up to the decision:

Posted October 5, 2010 by christopher

Tim Wu, a professor and long time champion of network neutrality, discusses why getting these policies right is so important.

Perhaps more interesting is the reaction from David Isenberg and Tim Wu's comment to that reaction.

The take-home lesson? Network neutrality is important, but is less of a permanent solution than networks that are structurally designed to work in the public interest rather than primarily manufacturing private profits.

This video is no longer available.

Posted October 4, 2010 by christopher

In an editorial for the October, 2010 issue, Scientific American explains "Why broadband service in the U.S. is so awful, and one step that could change it." This is an excellent shorthand explanation for the poor decisions of the FCC during the Bush Administration. Unfortunately, these decisions are being carried forward by the Obama Administration's FCC.

It was not always like this. A decade ago the U.S. ranked at or near the top of most studies of broadband price and performance. But that was before the FCC made a terrible mistake. In 2002 it reclassified broadband Internet service as an “information service” rather than a “telecommunications service.” In theory, this step implied that broadband was equivalent to a content provider (such as AOL or Yahoo!) and was not a means to communicate, such as a telephone line. In practice, it has stifled competition.

Posted October 2, 2010 by christopher

Missouri's Cass County, has received both a loan and grant from the broadband stimulus program run by the RUS in the Department of Agriculture.

The $26 million “Last Mile, Fiber-To-The-Home” network will be capable of providing service to 18 communities, nearly 12,000 households and 700 businesses within 625 square miles of mostly rural and underserved areas of the county.

The project, funded by an $18 million grant and $8 million in loans, also will connect schools to students and hospitals to patients.

Like the Cook County, MN, project, Cass County is working with Pulse Broadband to build an open access network.

Posted October 1, 2010 by christopher

Back in 1998, the Braintree Electric Light Department (Massachusetts) built an HFC network for remote monitoring of their electrical services. In 1999, they extended the network to become the first broadband provider in town.

With about 1,500 Internet customers solely from word-of-mouth advertising, BELD staff looked to expand the offerings from its HFC network. In 2000, a cable television plan and $3.5 million bond issue were approved at Town meeting. State-of-the-art digital cable service was launched before the end of that year, and by the end of 2001, BELD was serving 4,000 cable and nearly 3,000 Internet customers.

Posted September 30, 2010 by christopher

Sounds like the Scottsboro Electric Power Board is doing well. They offer fiber-optic services to businesses in addition to the cable services they offer to the general public.

Our Cable employees have also had a busy summer. We are experiencing a good bit of growth in business phone line installations and fiber optic data installations. Our phone partner Knology (based in West Point, Georgia) is doing a great job for us. Knology provides the telephone switching and long distance connections so we can concentrate on customer connections and customer service.

Knology seems to have partnered with a number of muni networks to offer telecom services.

Posted September 29, 2010 by christopher

On August 19, 2010, I was one of hundreds of people telling the Federal Communications Commission to do its job and regulate in the public interest. My comments focused on the benefits of publicly owned broadband networks and the need for the FCC to ensure states cannot preempt local governments from building networks.

My comments:

I’ll start with the obvious.

Private companies are self-interested. They act on behalf of their shareholders and they have a responsibility to put profits ahead of the public interest.

Posted September 28, 2010 by christopher

Lafayette's LUS Fiber network, after recently kicking off its ad campaign, has decided to offer 100Mbps residential connections after a number of requests from subscribers. The network previously offered a 100Mbps business service for $200 -- it seems they are now just allowing anyone to subscribe at that level and price.

As John notes at Lafayette Pro Fiber blog, this is the only tier for which residential plans come with the same price as business plans.

Posted September 27, 2010 by christopher

This looks interesting...

This video is no longer available.

More Information about Connected States of America here.

Posted September 26, 2010 by christopher

Almost $45 million from the broadband stimulus is heading to OneCommunity, a nonprofit organization in Northeast Ohio (originally named OneCleveland), in order to expand their network across 27 counties.

OneCommunity expects 800 new subscribers -- colleges, hospitals, universities and governmental entities -- to tie into the network.

OneCommunity generally works by expanding middle mile networks through partnerships with other nonprofits as well as the private sector. Learn more about the plans and background of OneCommunity from its press release or their web site.

Posted September 24, 2010 by christopher

The nation's newest community fiber network (FTTH) is launching in Salisbury, North Carolina, in the next month. Fibrant, a $29 million project financing by general obligation bonds, is slightly behind schedule but way ahead of the cable and DSL competition.

The City Council has approved the network's pricing in anticipation of hooking up customers in October. Some 70 people have been testing the network, but it will soon be available to everyone in the community. The basic tier of broadband speeds is 15Mbps and they have a second tier at 25 Mbps. The network is capable of much faster speeds but these are the tiers they will start with, making them the fastest basic tier available in North Carolina.

Posted September 23, 2010 by christopher

A few weeks ago, the Herald Tribune ran a number of articles about broadband by Michael Pollick and Doug Sword that discussed some community fiber networks and efforts by Counties in Florida to build their own fiber-optic networks.

The first, "Martin County opting to put lines place," covers the familiar story of a local government that decides to stop getting fleeced by an incumbent (in this case, Comcast) and instead build their own network to ensure higher capacity at lower prices and often much greater reliability.

Martin County, FL

Posted September 22, 2010 by christopher

If Seattle moves forward on the Community Fiber Network it has been considering, it will be the largest such network in the nation. However, as we recently noted, progress has been slow. Reclaim the Media recently noted progress toward publicly owned fiber in Edmonds and asked why Seattle is stuck in the mud on the issue.

The City's "Seattle Jobs Plan" devotes a significant mention of a publicly owned fiber network as a smart investment:

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