Tag: "comcast"

Posted June 4, 2010 by christopher

It's fast and it's symmetrical. Chattanooga, the nation's largest muni FTTH network will be offering the fastest residential package in the country by the end of the month: 150 Mbps.

Chattanooga's Electric Power Board (EPB) is ahead of schedule in the fiber rollout, planning to offer triple-play services to all 145,000 residential customers in its electrical territory by the end of the year. Dave Flessner at the Chattanooga Times Free Press covered this story and the paper posted a short audio clip of EPB President Harold DePriest at the press conference.

EPBFi is up to almost 10,000 customers, a number expected to double by the end of the year.

Comcast is responding to this aggressive muni network:

Comcast Corp. remains Chattanooga's biggest video provider and has also increased the speed of its Internet offerings and the number of high-definition television channels and movies it provides for its subscribers.

Tennessee, home to the famous Tennessee Valley Authority that brought the electrical grid the mountains long neglected by the private sector, continues to value public ownership of infrastructure:

Hamilton County Mayor Claude Ramsey likened EPB's broadband expansions to what the Tennessee Valley Authority brought to the region during the Great Depression.

"What is happening today is equivalent to electricity coming to the valley in the 1930s," he said.

I'm guessing this 150Mbps plan is the first of more impressive announcements to come out of Chattanooga as they take advantage of this key community asset. The 150 Mbps press release is available here.

The article also noted a major economic development win in Bristol Tennessee - a $20 million newspaper printing plant that would not have been possible without their muni network. This testimonial is located toward the bottom of the page.

Hyatt [company VP] acknowledged that the high-speed data transfer and reliable fiber optics were the main reasons for locating the facility in the park. This service is essential as companies move deeper into the information age, especially with...

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Posted April 5, 2010 by christopher

Recent letters in the Chattanoogan reflect frustration with the cable incumbent, Comcast, and the ease of switching to the publicly owned EPB Fiber network. This is one of them:

My Comcast exit was very easy. Step one: Make appointment to have EPB Fiber service installed. Step two: Put all Comcast receivers and remotes in a box and hand it through the "teller" window at the Comcast office. Step 3: Ask for a receipt from the nice lady to whom I handed the box. Step 4: Receive my Comcast credit balance check in the mail and open it while watching TV on the EPBFI system. I never even had to speak to a Comcast phone rep in India.

A previous round of letters discussed several of the ways the publicly owned network is superior to Comcast, though one customer complained that EPB Fiber was too expensive, compared to Comcast's introductory and temporary rates (incumbents like Comcast typically negotiate rates in response to competition without advertising the reduced rate - so customers who are willing to haggle over the phone may find cheaper prices from a private company willing to lose money to deny customers to competition).

One reader noted how fast the local, publicly owned network installed the network.

I left shortly after that call [ordering service] and returned a couple of hours later from grocery shopping. EPB contractors had already been to my home and installed the boxes on the side of the house. Yes, super fast service.

The day the installers came to complete the inside installation, they were on time, courteous and knew just what needed to be done to complete the install. One of the men even told me of a problem with my A/C heating unit duct work underneath my home which needed to be looked about soon. The men cleaned all the areas they worked in, made sure all my services worked correctly and asked if I had any questions they could answer before they left. Both men did a fantastic job and worked quickly to complete the work.

Posted March 14, 2010 by christopher

A recent article from GovPro.com, "Cities make end run around data network obstructions," has a good discussion of why referendums are not a good way of ascertaining community support for a community network:

A 2005 Colorado law bans municipalities from providing any type of advanced telecommunications services unless more than 50 percent of the voters favor the plan. Longmont's ballot question asked voters to allow the city to provide services either directly or in partnership with a private company, but 57 percent of voters said no.

"Comcast decided it didn't want Longmont to go there," says Tom Roiniotis, director of Longmont Power & Communications, the city's community-owned electric utility. Comcast spent about $200,000, the largest contribution to any campaign in Longmont's history, to defeat the measure, Roiniotis says. Meanwhile, once the issue became a ballot initiative, Longmont was not allowed to spend any money to campaign for the ballot initiative because that would violate campaign financing laws. "We were walking with one arm and one leg tied behind our back when it came to this campaign," Roiniotis says.

Posted February 9, 2010 by christopher

Dover, a city of over 12,000 in Eastern Ohio south of Canton, has been considering a publicly owned fiber to the home network for years to complement its water and electric muni utilities. The City Council is mulling the latest proposal, one that shows a lower cost to build (probably due to a combination of technology lowering prices and lower price for labor in a recession).

The summary indicated that total funding costs have decreased from $11,615,791 in December 2008 to $10,663,410 in December 2009. Shaw estimates that operating income would make the system financially feasible after the third year and could enable the city to pay off its debt in 15 years vs. 16 years as had been predicted two years ago.

A press release from Uptown Services, a broadband consulting company provided some history:

They originally hired Uptown in 2004 to complete a broadband feasibility study. The results of that study were promising, but the City chose to wait for the economics to improve as the technology matured and costs came down over time. Uptown completed a refresh of the original study in 2008. The case had improved, but the City wanted to fine tune the cost estimates through the completion of an actual system design prior to making any final decisions on a City wide deployment. Uptown was selected in 2009 through an RFP process from a slate of qualified proposals to complete this design.

Judging from the local site explaining the networks, they really understand the power of publicly owned broadband. The FAQ include this gem:

Remember this critical point: The incumbents look for a profit and answer to their shareholders, while the City of Dover looks for the betterment of the community and answers to its citizens.

They city has Verizon and Comcast as incumbents respectively. I suspect Dover is one the thousands of communities Verizon is trying to dump on Frontier Communications rather than invest in smaller communities. The stumbling block currently appears to be deciding how to finance the proposed network.

Posted February 7, 2010 by christopher

I am not going to spend a lot of time on this, because if it isn't in the proverbial weeds for the focus of this site, it is pretty close. But the merger between Comcast and NBC would be bad news for publicly owned networks.

Comcast is already a massive company that has huge advantages due to its scale. When a community served by Comcast decides it wants a network that puts the community first rather than the boardroom in Philadelphia, they have to compete with Comcast for customers. Comcast can cross-subsidize from its non-competitive markets, meaning it can offer its services at a loss in competitive communities, offering prices that a new network simply cannot beat while paying its bills.

The larger it gets and the more channels it owns, the more market power it has and the harder for competitors to get enough subscribers to stay in business.

Beyond publicly owned networks, the Comcast and NBC merger is bad for everyone who likes real choices in channels to watch and programming to consume. In these times of great creativity due to the openness of the web, it further constrains opportunities for independent content creators - as illustrated by two articles describing the sausage-making of creating a channel lineup: Comcast vs. the Tennis Channel and How Cable Programming is 'Chosen.'

Posted January 29, 2010 by christopher

Evidently, the Comcast-provided I-Net in Norton - a city of nearly 20,000 west of the Cape - suffers frequent outages, outraging those who depend on it. The City has decided to build their own network (after originally hoping Verizon would fund it) to connect town offices, public safety, and school sites with fiber-optic cables.

Norton predicts significant savings from the new network - just as do hundreds of other cities that are building their own I-Nets to cut costs and dramatically improve services and reliability.

The projected costs are $116,000, according to this article.

Town Manager James Purcell said the main infrastructure that will be installed will be the beginning, and likened the expenditure to paying for the installation of a major sewer line with stubs to various buildings.

Posted December 22, 2009 by christopher

After campaigning on building a publicly owned fiber-to-the-home network in Seattle, Mayor McGinn has decided to maintain leadership at the Department of Information Technology. Department head Bill Schrier will stay on, continuing his work that lays the groundwork for a community-owned network.

He said he expects the city to apply for federal stimulus money in the first part of the year to move toward that goal. In addition to improving broadband access in homes, the initiative could help Seattle City Light implement smart-grid infrastructure, and improve public safety communications.

Another article further notes their shared ambition:

"Mayor-elect McGinn ran on a platform of bringing fiber to every home and business in Seattle, something I've advocated for several years," Schrier commented.

No post discussing broadband in Seattle is complete without a reference to Glenn Fleishman - who both wrote another story discussing the situation and then patiently responds to many comments in the thread below it. Discussing Tacoma's publicly owned Click! network, he notes that Tacoma's investment benefited everyone:

Click being built actually helped what has become Qwest and Comcast: by creating a market and making it feasible for professionals who need high-speed Internet access in Tacoma to live there, Click spurred the two incumbents to improve their networks, compete, and gain new revenue. Comcast actually thanked Tacoma Power publicly years ago; not sure it would today, but it was seen as a big boost for the viability of competitive broadband.

Photo used under creative commons license from flickr.

Posted December 4, 2009 by christopher

My friend, Geoff Daily at App-Rising.com, has questioned the wisdom of running fiber to all anchor institutions.

There's been a lot of buzz around the benefits and relative viability of wiring all community anchor institutions (schools, libraries, hospitals, etc.) with fiber as the way to get the best bang for the broadband buck. But recent conversations with my fiber-deploying friends have led me to worry that doing this could be a big mistake.

...

The reason is simple: if you build a network to serve community anchors, then those institutions won't be available to serve as anchor customers for a community-wide deployment. Without those community anchors as customers, the economics of deployment, especially in rural areas, becomes much harder and may actually make robust, sustainable broadband impossible in some areas.

This is a question I have wrestled with also, in trying to help communities understand the real impacts of decisions they make on whether to build their own broadband network.

My first reaction is on philosophical grounds - public institutions like schools, police departments, etc., do not exist to prop-up the business models of cable or telephone companies. Large entities like municipal and county governments should own their own network because it will save them money and expand their capabilities. When will the tea-party protesters start protesting government paying exorbitant fees to telephone companies for slow T-1 lines and the like? After all, these are our tax dollars and they should be spent wisely.

My second reaction is that I seriously doubt removing these institutional networks will impact the business model significantly. Maybe it would have last decade, but now we know that Comcast and probably many more have ">massive margins in their broadband operations. Losing the libraries and schools will do little to their bottom lines. Even if it takes a bit out of their profits, they won't go missing meals.

But really, the answer is more complicated. Many municipalities already get "free" services from their cable company as a part of the video...

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Posted December 1, 2009 by christopher

It looks like Palo Alto should move quickly on expanding its publicly owned fiber-based I-NET - as the city renegotiates the cable franchise with Comcast, the private cable company is trying to rip-off taxpayers with exorbitant prices for community anchor tenants.

California is one of several states to recently take negotiating power on cable television franchises away from communities and grant it to the state. Historically, communities negotiated a free or reduced rate for connectivity to schools, public safety buildings and other key community anchors in return for access to community Right-of-Way - an essential permission necessary to build a cable network.

However, as these agreements come up for review, the regulatory landscape is significantly different than it was when they were negotiated in the past. Federal and state decisions have limited the power of communities to gain concessions from cable companies as they continue to raise prices and post large profits.

In response, many communities have embarked on smart efforts to build their own fiber-optic networks connecting key institutions. These networks often save money while greatly increasing available bandwidth, allowing local governments to be more efficient and use cutting-edge applications. In some communities, these Institutional Networks have formed the backbone of next-generation networks that extend full fiber-to-the-home network access to businesses and citizens. Palo Alto has not yet connected all the necessary buildings with its network and still depends on Comcast for bandwidth to those areas.

Communities should beware - network ownership means power. The network owner can decide what price to charge schools - prices that must be paid with tax dollars. Communities building their own networks have slashed these prices and reduced pressure on the tax base. They don't have to worry as much when cable franchise negotiations are up again - like Palo Alto is now.

Joe Saccio, deputy director of Palo Alto's Administrative Services Department, said Comcast's proposed rates for I-Net would essentially enable the cable company to bill the communities twice for the fiber network. The network's construction was funded by cable subscribers and according to the staff report, Comcast has already largely (if not completely) recouped those costs.

"It's felt...

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Posted October 28, 2009 by christopher

As I noted previously, a community in Colorado - Longmont - will soon vote on whether the local government should be allowed to sell retail Internet services. This community has tried a number of approaches to expanding broadband competition but have not yet succeeded in getting the networks they need.

The local paper opposes the measure. However, the editorial frames the issue in a curious way. It claims the ballot measure will "override" state law, which is utterly false. State law says the community has to approve it before they can do it - so the City is complying with the state law.

Those against the measure point to failed municipal-run telecommunication efforts as another reason not to support this measure. That’s fairly compelling, especially when we have no specifics about what type of telecommunications projects the city will pursue.

Those against the measure claim that municipal-run telecommunications efforts have failed. They often point at successful community networks (or even failed privately owned networks, oddly enough), call them failures, and rightly assume that no one will fact-check the assertions. Often, they will gin up some false numbers that suggest a far-off network has lost a lot of money (using their same methodology, it would be crazy for anyone to borrow to buy a house).

Regarding the concern over what specific project the city will pursue if authorized, this is an interesting catch-22 because it makes little sense to expend a lot of money on a business plan before a community has the authority to build something. Either decision is difficult and requires a trust in the local leadership and democratic process.

Comments to that editorial rightly note that Comcast and Qwest will not prioritize investments in Longmont until they see competition. The private sector has failed to generate competition on its own, so the community is smart to consider spurring competition themselves. However, both Comcast and Qwest can spend hundreds of thousands of dollars to scare people into voting against competition - it will still be cheaper for the incumbents than having to actually invest in faster networks.

One of the comments provides some interesting background on local broadband:

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