Tag: "comcast"

Posted August 23, 2012 by lgonzalez

Just on the heels of Time Warner Cable announcing 81 new jobs in Kansas City in response to the newly competitive environment created by Google's Gig, we learned that Comcast is adding more jobs to its workforce in Chattanooga.

In talking points, the lobbyists and spokespeople for these major carriers often claim that community networks will result in less investment from the existing providers, not more. This is theoretically absurd, as competition drives increased investment. And empirically, we almost always see existing providers invest more as a response to losing their monopoly, not less.

According to Ellis Smith of the Chattanooga Times Free Press, 150 new jobs will be added by the end of the year. Ellis spoke with Jim Weigert, vice president and general manager of Comcast Chattanooga:

"Chattanooga is often at the top, not only in our division but across the country in terms of performance,” Weigert said. “Our strength and record of success made it a contributing factor when they selected a location."

Comcast and others, including AT&T, have had to step up their game in Chattanooga to keep customers who suddenly had a real choice. 

Regardless of whether or not today's Chattanoogans connect to its publicly owned network, they benefit. Consumers get better service, affordable rates, and advanced technology simply because the network has created competition.

Posted August 14, 2012 by christopher

The eighth podcast in our Community Broadband Bits series is a discussion with Jim Moorehead, the Chair of the Executive Committee of the Broadband Alliance of Mendocino County in California. Mendocino is a large, rural county in the northern part of the state that has been left behind by major incumbent providers including AT&T, Comcast, and Verizon.

We talk about what steps they have taken to solve their problems and discuss the frustrating state of broadband mapping -- state and federal officials readily accept the dramatic exaggeration of incumbent footprints where broadband is available.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address.

This show is 26 minutes long and can be played below on this page or subscribe via iTunes or via the tool of your choice using this feed. Search for us in iTunes and leave a positive comment!

Listen to previous episodes here. You can download this Mp3 file directly from here.

Read the transcript of this episode here.

Find more episodes in our podcast index.

Thanks to Fit and the Conniptions for the music, licensed using Creative Commons.

Posted August 8, 2012 by lgonzalez

A major difference between Main Street and Wall Street is that we view Comcast's lack of competition as a major problem. The prospect of Comcast increasing our rates year after year makes us want to scream. Prepare to scream. Or throw things.

The Lafayette Pro-Fiber Blog alerted us to a piercingly honest analysis from Wall Street. The article on SeekingAlpha.com, titled We-re Big Fans Of Comcast's Cash-Flow Generation captures one of the major policy failures of our time:

Comcast's traditional Cable Communications continues to grow and generate copious cash flow. Video revenue, Xfinity and other cable TV products, grew 2.8% to $5 billion, while High-Speed Internet revenue grew 8.9% to $2.4 billion. We're big fans of the firm's Video and High-Speed Internet businesses because both are either monopolies or duopolies in their respective markets. Further, we believe that both services have become so sticky and important to consumers that Comcast will be able to effectively raise prices year after year without seeing too much volume-related weakness.

Wow.

SeekingAlpha.com, describes itself as "…the premier website for actionable stock market opinion and analysis, and vibrant, intelligent finance discussion."

We want to empower local businesses and communities to control their own destiny. Monopolistic telecommunications companies, with their Goliath market share, Wall Street priorities, and armies of lobbyists continue to attack local control and self-reliance. They are extracting assets from Main Street and shipping it to Wall Street.

Yet we see the FCC, Congress, and many states pretending that the public interest is best served by giving more power to these massive companies. And we will continue to hear industry-funded think tanks claiming that broadband has robust competition and should be subject to less public oversight. Coming soon to an op-ed page near you.

Photo courtesy of JSquish via Wikipedia Commons

Posted July 17, 2012 by christopher

The fourth episode of Community Broadband Bits features Kevin Kryzda from Martin County, Florida. We discuss their county-owned network that is saving millions of dollars for the community -- as detailed in our case study published last month.

Activists that want to encourage publicly owned broadband in their communities should familiarize themselves with the cost savings and advantages from Martin County's approach. Though Martin County is serving schools, libraries, and public safety, it does not serve residents and businesses with services directly. However, this could be the first step for other communities before they do offer such services to everyone.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address.

This show is 19 minutes long and can be played below on this page or subscribe via iTunes or via a different tool using this feed. Search for us in iTunes and leave a positive comment!

Listen to previous episodes here. You can download the Mp3 directly from here.

Read the transcript of this episode here.

Find more episodes in our podcast index.

Thanks to Fit and the Conniptions for the music.

Posted July 13, 2012 by christopher

Fresno's loss will be Provo's gain. Why? Because Provo built its own network and can meet the modern telecommunications needs of businesses. A company is moving from Clovis, in Fresno County (California), to Provo, Utah. The Business Journal covered the story:

Clovis-based Secure Customer Relations, Inc., plans to move its entire operation to Provo, Utah this month, resulting in the loss of 98 jobs.

...

Secure Customer Relations operates a call center that specializes in appointment setting, client prospecting and other functions on behalf of the insurance industry.

Overall, the cost of operations in Provo would be a savings over Clovis, Carter said, including labor costs. He added that Clovis does not have the same level of fiber optic infrastructure as Provo.

Interestingly, Clovis is slated to get better access to broadband as part of the stimulus-funded Central Valley Next-Generation Broadband Infrastructure Project. Unfortunately, that is one of them any middle mile projects that will connect community anchors but not offer any immediate benefits to local businesses and residents. It is a middle mile project, not a last-mile project that would build a fiber-optic access network like Provo has connecting everyone.

This is not to demean the middle-mile project, but such things are often misunderstood (sometimes due to deliberate obfuscations by those promoting them).

And speaking of obfuscation, the Economic Development Corporation of Utah apparently wants the Utah state government to take credit for this company moving to Provo.

"We move a lot of data and need high capacity," CEO Carter Beck told the Journal last week. His company specializes in appointment setting, client prospecting and other functions on behalf of the insurance industry.

The relocation of companies like Secure Customer Relations, Inc. to Utah reaffirms the conclusions of a Utah Broadband Advisory Council Report released last week by the Utah Broadband Project and the Governor's Office of Economic Development (GOED) -- that...

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Posted July 5, 2012 by lgonzalez

In June, the city council of Greenacres, Florida, voted to invest $42,550 to connect to Palm Beach County's fiber-optic network. Greenacres joins a growing list of Palm Beach County municipalities who have data-transmission agreements with the County. Other towns include Palm Beach Gardens, Jupiter, Juno Beach, West Palm Beach, Delray Beach and Riviera Beach.

Willie Howard of the Palm Beach Post covered the Greenacres story earlier this month:

Instead of paying AT&T and Comcast $33,360 annually for transmission lines, the city will pay Palm Beach County $8,400 annually.

"It's basically cost sharing as opposed to revenue generating," said Mike Butler, director of network services for Palm Beach County. "We're not in it to make money."

Thomas Hughes, Finance Director of Greenacres, estimates the savings to the City will amount to $124,800 over five years.

In addition to saving money, Greenacres will have the advantage of increased speed. Currently, AT&T and Comcast provide a 1.5 Mbps connections. The new arrangement will provide 10 Mbps from the County - six times faster at a little more than one third the cost. The City can also feel good about keeping the dollars local and will avoid the uncertainty in dealing with remote and giant AT&T or Comcast.

Palm Beach County sits just south of Martin County, where a municipal network saves the County and school district significant dollars for connectivity. You can download our recent case study on Martin County, Florida Fiber: How Martin County Saves Big with Gigabit Network, to learn more about that network.

Posted June 30, 2012 by christopher

We have followed Seattle's on-again, off-again consideration of a community broadband network for years and have occasionally noted the successful cable network in nearby Tacoma.

Seattle Met's Matthew Halverson has penned a short, impressive article explaining the trials and tribulations of Tacoma while also exploring why Seattle's Mayor has abandoned his goal of a broadband public option.

Before the massive cable consolidation that has left us with a handful of monopolists, we had a larger number of smaller monopolists that abused their market power to limit competition. One of the worst was TCI, which refused to upgrade its awful services in Tacoma, which pushed Tacoma to build its own network. TCI suddenly decided it did care about Tacoma.

TCI wouldn’t go down easily, of course. For the next year, as the City built out its system, the cable giant took advantage of the utility’s biggest weakness: All of its plans, from the kind of equipment it would buy to its construction schedule, were public information. So when Tacoma Power put in an order with its supplier for, say, coaxial cable, it found that TCI had already bought every foot of it. “But we started in one area of town and luckily we were able to get just enough material,” says Pat Bacon, Click’s technical operations manager. “We just inched our way through it and, before you knew it, we were a presence.” By July 1998, Click had its first cable subscriber, and the first broadband Internet user signed on in December 1999.

A substantial portion of the article is devoted to the dynamics around open access between the utility and independent providers -- an important read for anyone considering the open access approach.

Halverson did his homework on this article and I think he got it mostly right. I think the FiOS-wired suburbs do present a larger threat to Seattle than suggested, but it certainly does not compare to the approaching-existential crisis faced by Tacoma fifteen years ago.

I wish I could disagree with his conclusion that Seattle is unlikely to get a community fiber network but unless the community rises up to demand it, elected officials are unlikely to see any benefit to making such a long term...

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Posted June 28, 2012 by lgonzalez

Arlington County, Virginia is taking advantage of a series of planned projects to create their own fiber optic network, ConnectArlington. The County is moving into phase II of its three part plan to improve connectivity with a publicly owned fiber network.

Some creative thinking and inter-agency collaboration seem to be the keys to success in Arlington. Both the County and the Arlington Public Schools will own the new asset. Additionally, the network will improve the County Public Safety network. Back in March, Tanya Roscola reported on the planing and benefits of the ConnectArlington in Government Technology.

Arlington County's cable franchise agreement with Comcast is up for renewal in 2013. As part of that agreement, the schools and county facilities have been connected to each other at no cost to the County. Even though there are still active negotiations, the ConnectArlington website notes that the outcome is uncertain. The County does not know if the new agreement will include the same arrangement. Local leaders are not waiting to find out, citing need in the community and recent opportunities that reduce installation costs. 

Other communities, from Palo Alto in California to Martin County in Florida, have found Comcast pushing unreasonable prices for services in franchise negotiations. Smart communities have invested in their own networks rather than continue depending on Comcast.

Like schools all around the country, Arlington increasingly relies on high-capacity networks for day-to-day functions both in and out of the classroom. Digital textbooks, tablets, and online testing enhance the educational adventure, but require more and more bandwidth and connectivity. From the article:

Through ConnectArlington, Arlington Public Schools will be able to take advantage of Internet2 for distance learning. At no cost, students will be able to communicate with teachers and access electronic textbooks and online courses from wireless hot spots.

The...

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Posted June 25, 2012 by christopher

Far too many people seem to think that when they go to Speedtest.net to test their connection, they get a number that has any bearing on reality. For most of us, it simply doesn't. This is true of other large tools for measuring connections. And it has important policy implications because the FCC contracted with a company called Sam Knows to measure wireline speeds available to Americans (I'm a volunteer in that project).

Sam Knows explains :

SamKnows has been awarded a ground breaking contract by the Federal Communications Commission (FCC) to begin a new project researching and collecting data on American fixed-line broadband speeds delivered by Internet Service Providers (ISP's) - until now, something that has never been undertaken in the USA.

The project will see SamKnows recruit a team of Broadband Community members who will, by adding a small 'White Box'’ to their home internet set up, automatically monitor their own connection speeds throughout the period of the project.

Unfortunately, SamKnows appears to be documenting fantasy, not reality.

To explain, let's start with a question Steve Gibson recently answered on his amazing netcast, Security Now (available via the TWiT network). A listener asked why he gets such large variation in repeated visits to Speedtest.net.

Security Now Logo

Steve answers the question as an engineer with a technical explanation involving the TCP/IP protocol and dropped packets. But he missed the much larger issue. Packets are dropped because the "pipes" are massively oversubscribed at various places within the network (from the wires outside you house to those closer to the central office or head end). What this means is that the cable company (and DSL company, to a lesser extent) takes 100Mbps of capacity and sells hundreds of people 20Mbps or 30 Mbps or whatever. Hence the "up to" hedge in their advertisements.

The actual capacity you have available to you depends on what your neighbors (cable) or others in the network (DSL) are doing. Dropped packets in TCP result often result from the congestion of high oversubscription ratios.

This gets us into why Speedtest.net and Sam...

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Posted June 21, 2012 by lgonzalez

Farmington, New Mexico, currently has 80 miles of fiber and has decided to consider the best way to get the most out of the investment. The City uses the fiber network strictly for its Farmington Electric Utility System but sees potential in maximizing the power of the unused strands. Earlier this year, they commissioned a study from Elert & Associates to investigate the technical possibilities. Front Range Consulting reviewed the financial pros and cons.

In February, both experts provided options to the City Council. While offering triple play services is a possibility, both firms recommended leasing available fiber to existing ISPs instead. Expanding to a triple play offering would require  a $100 million investment to connect the 32,000 current Farmington Electric Utility System's customers.

Dick Treich, from Front Range Consulting, commented on the pushback to expect from Comcast and CenturyLink, if the City decided to pursue triple play retail services. From a February Farmington Daily Times article (this article is archived and available for purchase):

"They won't sit still for that," Treich said. "First they will challenge the legality of whether you can get into that option, possibly tying you down in court for a long time. They will also start the whole argument of public money being used for starting a private business. It would be a two-pronged attack."

The City Council also pondered the option of leasing fiber, which would require a $1.5 million infrastructure investment. Also from the article:

"Five companies have expressed interest," said Assistant City Manager Bob Campbell. "Assuming that those companies would each use approximately 10 miles of fiber, (they) would provide $170,000 annually leasing dark fiber."

Update:

Bob Campbell, Acting Director of the General Services Department of Farmington, emailed us this update:

"...after the February meeting Council requested a study for the leasing of bandwidth, that report was presented to Council in May. Now staff will be making a presentation to Council in July asking Council to adopt a policy for the leasing of dark fiber....

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