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Comcasts Invests in Theme Parks Rather than Better Broadband
While its network continues to offer last generation speeds at high prices and their customer service reps go viral harassing customers who try to leave their grasp, Comcast executives have decided it is time to invest hundreds of millions of dollars to upgrade... their theme parks. That's right, as they shift call centers to the Philippines to save money, they are reinvesting it into roller coasters.
Having acquired Universal Orlando Resorts as part of their 2011 merger with NBC Universal, Comcast has decided to step outside its core business of providing Internet access, cable TV, and phone service in noncompetitive markets. According to a March CED Magazine article, Comcast plans to invest hundreds of millions in theme parks in both Florida and California in an effort to challenge Disney’s traditional dominance of the field. Attractions in Orlando will include an 1,800 room beach resort and a new Harry Potter ride.
This investment in rides occurs against the backdrop of falling infrastructure investment in the broadband industry, despite rapidly increasing bandwidth demands and claims by ISPs that services such as Netflix are straining their networks and must pay extra for “fast lane” service.
It is possible to imagine a world in which broadband markets are sufficiently competitive to force Comcast, CenturyLink and other incumbents to invest sufficiently in building out and upgrading their networks, delivering better service to their customers. But in our world, Comcast can spend the comparatively small sum of $18.8 million on lobbying (in 2013 according to OpenSecrets.org), becoming the seventh biggest campaign contributor in the nation and pushing legislation like the recent Blackburn amendment that eliminates potential public sector competitors.
Santa Fe Ready to Improve Local Internet Choice
The City of Santa Fe is taking first steps to improve the community's Internet choice, quality, and availability. Recently, the City announced that it has chosen a partner for a middle mile investment and will move forward with the $1 million fiber deployment project.
CenturyLink and Comcast serve Santa Fe, home to approximately 70,000 people. Residents and businesses both complain about slow speeds and relatively high costs. Residents pay $50 per month for average speeds of 5 Mbps while nearby Albuquerque pays the same price for 10 Mbps, according to the Santa Fe New Mexican.
CenturyLink owns the sole fiber hut connecting the community with the Internet. The company also owns the line bringing access to the web to downtown, giving it control over data transmittal in the city. A city press release, reprinted at SantaFe.com in May 2013 described the problem:
Every home and most businesses already have two physical routes to the Internet: A telephone line and a television cable...But in spite of this abundance of pathways, there is a crucial missing link in the infrastructure, an enduring legacy of the former telephone monopoly. This missing link spans from the central telephone office to a location about two miles away where several fiber optic cables emerge from the ground after traversing many miles of road, railroad and countryside from remote junctions across the state. Absent this two-mile link, local providers have only one way to connect to the outside world, and must pay a steep toll on the data transmitted over it.
The City recently announced that it would work with local ISP Cyber Mesa to build an independent line from downtown to CenturyLink's fiber hut. The City hopes the line will introduce much needed competition, encouraging better service and prices.
Comcast Named the Worst Company in America, Gets Yummy Cake
Not everyone hates Comcast. Antennas Direct.com, helping cable TV customers cut the cord, recently surprised the corporate behemoth with a congratulatory confection. To our delight, they shared some moments from the experience.
The Consumerist recently named Comcast the 2014 Worst Company in America. Based on customer comments in the video, clearly Comcast deserves this prestigious designation. Do we want this company controlling our most important communications tool? Let them eat cake.
Network Neutrality Update
Bill Moyers on Network Neutrality and Threat from Comcast
Peering: Then and Now on Community Broadband Bits Podcast #96
No Scale Advantage in Netflix Speed Ranking
Paid Prioritization Threat Reinforces Value of Community Networks
Seattleites Want More Than Rhetoric in Quest for Better Broadband
In a recent SLOG post from the Stranger, Ansel Herz commented on Mayor Ed Murray's recent statement on broadband in Seattle. Murray's statement included:
Finding a job, getting a competitive education, participating in our democracy, or even going to work for some, requires high speed internet access. I have seen people say online, "I don’t need a road to get to work, I need high speed internet." Seattle would never leave the construction of roads up to a private monopoly, nor should we allow the City’s internet access to be constructed and managed by a private monopoly.
It is incredibly clear to me and residents throughout the City of Seattle, that the City’s current high speed internet options are not dependable enough, are cost prohibitive for many, and have few (if any) competitive options.
The Mayor also hinted that if the City needs a municipal broadband network, he would "help lead the way."
As a Seattleite, Herz knows firsthand about the lack of connectivity options in the area. Herz writes:
This is both encouraging and disappointingly tentative language from the mayor. It seems to cast municipal broadband as a last resort. Municipal broadband is a no-f*cking-brainer. [our *]
Herz turned to Chris for perspective:
"I have seen this from many Mayors who talk about how someone should do something but we don't always see concrete actions because of the difficulty and the immense opposition from some powerful companies like Comcast," Christopher Mitchell, the Director of the Telecommunications as Commons Initiative, who's worked with cities across the country on this question, tells me.
Seattle doesn't know what to expect from a Mayor that Comcast tried to buy (we suspect they did not succeed but have nonetheless sent a loud message). It is encouraging to see that the issue has not simply disappeared, but Herz and his neighbors want more:
Long List of Public Interest Groups Sign on to Free Press Letter Opposing Comcast Time Warner Cable Merger
The Free Press announced that more than 50 public interest groups, including the Institute for Local Self-Reliance, signed on to its letter in opposition to the Time Warner/Comcast merger.
The letter, addressed and delivered to Attorney General Eric Holder and FCC Chairman Tom Wheeler, begins:
The proposed Comcast-Time Warner Cable merger would give one company enormous power over our nation’s media and communications infrastructure. This massive consolidation would position Comcast as our communications gatekeeper, giving it the power to dictate the future of numerous industries across the Internet, television and telecommunications landscape.
In the press release, Craig Aaron, President and CEO of the Free Press, stated:
“The question before the FCC is whether this deal serves the public interest. The answer is clear: A bigger Comcast is bad for America.
“Merging the nation’s two biggest cable-Internet providers would turn Comcast into our communications gatekeeper, able to dictate the cost and content of news, information and entertainment. We need an Internet and video marketplace that offers people high-quality options at prices they can afford — not a near-national monopoly determining what we can watch and download.
“In the past four years, Comcast has raised basic cable rates in some markets by nearly 70 percent. Its top lobbyist has admitted that the price increases will continue to skyrocket if the merger goes through. And that's about the only thing Comcast has said about this deal that you should believe.
“The growing chorus of groups opposing this takeover knows the truth. The only rational choice is for the FCC and Justice Department to reject this merger."