Tag: "lafayette"

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.

A recent post from the Economist magazine’s technology blog picks up from there:

WHY, exactly, does America have regulators? … Regulators, in theory, are more expert than politicians, and less passionate. …They are imperfect; but that we have any regulators at all is a testament … to the idea that companies left to their own devices don't always act in the best interests of the market.

They go on to say

If companies always agreed with regulators' rules, there would be no need for regulators. The very point of a regulator is to do things that companies don't like, out of concern for the welfare of the market or the consumer.

When we talk about broadband, there is a definite gap between what is best for communities and what is best for private companies. Next generation networks are expensive investments that take many years to break even.

With that preface, I challenge the FCC to start regulating in the public interest.

The FCC does not need a consensus from big companies on network neutrality. It needs to respect the consensus of Americans that do not want our access to the Internet to look like our access to cable television.

But while Network Neutrality is necessary, it is not sufficient. The entire issue of Network Neutrality arises out of the failed de-regulation approach of the past decade. Such policies have allowed a few private companies to dominate broadband access, giving communities neither a true choice in...

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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.

The other residential tiers are cheaper than their corresponding business tiers by 45-48%. Nor, according to Huval's remarks in the comments is the monthly usage cap any different—in both the residential and the commercial versions of the 100 meg package is capped at 8 terabits. (Note: that'd be about 1 terabyte of hard disk storage.) The idea behind the higher prices for businesses is that they use much more bandwidth than households—and LUS pays for its connectivity by capacity.

LUS Bandwidth Caps

This brings up something I don't think I previously noted in discussions about LUS Fiber - it comes with a monthly transfer cap. I cut the cap chart out of their user agreement [pdf] above. Remember, 8 bits to the byte. Thanks to DSL Reports for the link to the user agreement.

This raises an interesting discussion. Private cable companies typically enforce caps because their network cannot physically support many users using a lot of bandwidth simultaneously. When hundreds of users share a single connection (as with cable), a few major users can seriously impact the experiences of others.

In a FTTH network like Lafayette's, there is no real danger of one user's activities affecting another's. However, there is a danger of racking up a high bandwidth charge for LUS Fiber if many users are constantly using a lot of bandwidth. By constantly, I mean really constantly as in...

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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

"We decided for the kind of money these people are asking us, we would be better off doing this on our own," said Kevin Kryzda, the county's chief information officer. "That is different from anybody else. And then we said we would like to do a loose association to provide broadband to the community while we are spending the money to build this network anyway. That was unique, too."

The new project will use a contractor to build a fiber network throughout the county and a tiny rural phone company willing to foot part of the bill in return for permission to use the network to grab customers of broadband service. The combined public-private network would not only connect the sheriff's office, county administration, schools and hospitals, but also would use existing rights of ways along major highways to run through Martin's commercial corridors.

Michael Pollick correctly notes that Florida is one of the 18 states that preempt local authority to build broadband maps.

However, they incorrectly believe that Martin County is unique in its approach. As we have covered in the past, a number of counties are building various types of broadband networks.

This is also not the first time we have seen a local government decided to build a broadband network after it saw a potential employer choose a different community because of the difference in broadband access.

From there, Michael Pollick and Doug Sword...

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Posted August 17, 2010 by christopher

Jonathan Feldman's "The State of Broadband," in a July Information Week cover story, is a breath of fresh air. Too often, these articles are written by someone with little background who extrapolates after discussions with the PR wing of several big companies. But Feldman has a keen grasp of reality and is aware of the many communities that offer far better services than the big companies like Comcast and AT&T.

The state of broadband matters to your organization. There's been considerable consumer interest over the past several years, culminating in an FCC plan announced earlier this year to expand broadband coverage and speeds and promote competition. IT organizations can benefit by staying in touch with those regulatory issues, as well as taking advantage of new technology trends, such as wireless broadband, and partnering with alternative providers and municipal networks that buck the status quo. There are clearly risks in doing so, but taking no action almost guarantees that enterprise IT, with pockets of presence in rural and other nonurban areas, will continue to be held back by low-capacity, high-expense networks.

I was even more impressed when I came upon a chart showing "selected rates for business Internet service for small and home offices." As would be expected, it showed Verizon FiOS, AT&T, Charter, and Comcast. But to give a sense of what is possible outside these major carriers, it showed LUS (community fiber network in Lafayette, LA) Fiber prices -- which completely blew away options from the major carriers. There was nothing even close.

He also notes Chattanooga's impressive 150Mbps tier -- which, as I often hasten to note, is not to suggest that community fiber networks are only successful if they can offer such impressive speeds. Chattanooga has access to bigger pipes at lower prices to connect to the Internet than most communities. And they are certainly taking advantage of that local situation!

My only quibble with the article lies with the assertion that competition is on the way for most of us. I think competition is on the way for very few of us, absent community investment. And with community networks come a host of added benefits -...

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Posted July 29, 2010 by christopher

John at Lafayette Pro Fiber posted about an upcoming Lafayette TV ad. Apparently, this is an advance copy. It emphasizes the ways in which LUS differs from privately owned networks. Community networks, no matter how technically superior to incumbent offerings, must have an outreach or advertising strategy. Having the best network does little good if few people know about it.

Posted July 17, 2010 by christopher

LUS has asked the court in Kansas to dismiss a lawsuit against it by NCTC (I previously explained this situation here). Down in Louisiana, a local paper is continuing to cover it and John at Lafayette Pro Fiber has explained the situation as well, with more context about the NCTC.

Once this lawsuit is dismissed, we'll hope for a ruling from the FCC that the NCTC cannot simply discriminate against some municipalities based on the private company incumbents doing business there.

Posted June 28, 2010 by christopher

In an editorial about the LUS Fiber lawsuit against NCTC, the local Lafayette paper made the following observation:

We've had our own reservations about LUS Fiber to the Home, based on concerns about a government enterprise encroaching on a market in which private-sector entities were already providing service. But LUS has, from all available evidence, enhanced the competition in the local marketplace in terms of both price and technology.

Those who claim community broadband networks decrease competition and incumbent investment do so against all empirical evidence.

Posted June 15, 2010 by christopher

Lafayette Utilities System has filed a complaint with the FCC following what seems to be a rather arbitrary decision by the National Cable Television Cooperative (NCTC) to deny Lafayette as a member. This is a crucial issue for communities that want to build fiber-optic networks, so we will dig in and offer an in-depth explanation.

It all starts with the business model. Fiber-optic networks are fantastically expensive and are expected to be financed entirely with revenues from subscribers. Though communities typically want fiber-optic networks for the broadband capacity, they find themselves having to offer cable television services also to ensure they will attract enough subscribers to make the debt payments on the network.

Unfortunately, cable television services are the most difficult and expensive part of the triple-play (broadband, telephone, cable tv). A community network has to sign deals with different content providers in order to put together its channel lineup. Even a community network with 100,000 subscribers has little power over the companies with channels like ESPN, the Disney Channel, Discovery, MTV, Food Network, and others. Thus, it will have to pay more for those channels than massive networks like Comcast that have many millions of subscribers and therefore a stronger negotiating position. LUS has noted that video programming is the "largest single on-going cost" it incurs in the network.

Enter the NCTC. By forming a cooperative, many small providers (public and private) were able to gain negotiating power over content owners and even hardware manufacturers to cut costs to members by buying in bulk. In recent years, the size of NCTC rivaled that of major national providers like Charter and Cox cable. All three parties stood to gain by bringing Cox and Charter into NCTC in 2009. The addition grew NCTC significantly -- only Comcast has more subscribers currently.

The advantages of NCTC are quite significant and worth reiterating because it is a reminder of the ways in which massive private companies have the playing field tilted in their direction. Without access to NCTC, communities have to pay more for the same content and equipment (NCTC savings may start at 15%-20%. From the complaint:

NCTC market power also enables it to obtain much bigger, better, more flexible, and less costly packages, than any individual small cable...

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Posted June 4, 2010 by christopher

This is a presentation I gave at FiberFête on April 20 in Lafayette, Louisiana. Unfortunately, the slides are not available in the recording, but most of my comments do not rely upon them.

Chris Mitchell - Muninetworks.org from FiberCorps on Vimeo.

Posted May 10, 2010 by christopher

This is a great inside look at how one community built a globally competitive broadband network (probably the best citywide network in the US) and the barriers they faced from incumbent providers Cox and BellSouth.

Terry Huval, the Director of Lafayette Utilities System in Louisiana, spoke to the U.S. Senate Committee on Small Businesses Entrepreneurship on April 27, 2010, on the topic of: "Connecting Main Street to the World: Federal Efforts to Expand Small Business Internet Access." Huval's full testimony is available here.

Huval's presentation told the back story of LUS Fiber, focusing on the barriers to publicly owned networks in Louisiana.

The FCC National Broadband Plan, on page 153, includes Louisiana as one of 18 states that “have passed laws to restrict or explicitly prohibit municipalities from offering broadband services.” While the Louisiana law did not prohibit Lafayette from providing broadband services, its mere presence provided, and continues to provide, a fertile playground for BellSouth (and its successor AT&T), Cox and their allies to create mischief, resulting in discouraging local governments from stepping in to provide these services even when the private telecom companies refuse to do so.

Louisiana, as with many other states including North Carolina, has powerful incumbents that claim there is an "unlevel playing field" and that local governments have too many advantages in building broadband networks (incomprehensibly, they simultaneously claim that local governments are incompetent and publicly owned networks always fail). But state legislators - who hear constantly from the lobbyists of these wealthy companies, have passed laws to discourage publicly owned networks.

Huval details just some of the disadvantages the public sector faces in comparison with the private sector (we detail many other disadvantages in our "Breaking the Broadband Monopoly report).

For example, while Cox Communications...

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