Tag: "fcc"

Posted August 21, 2012 by lgonzalez

If you are a current or potential Verizon customer, by now you know that you no longer have the option to order stand alone DSL. When the business decision became public knowledge in April, DSL Reports.com looked into the apparent step backward and found existing customers were grandfathered in but:

However, if you disconnect and reconnect, or move to a new address -- you'll have to add voice service. Users are also being told that if they make any changes to their existing DSL service (increase/decrease speed) they'll also be forced to add local phone service. One customer was actually told that he needed to call every six months just to ensure they didn't change his plan and auto-enroll him in voice service.

By alienating customers from DSL, Verizon can begin shifting more customers to its LTE service, which is more expensive. Susie Madrak, from Crooks and Liars, speculated on possible repercussions for rural America:

Rural areas could see the biggest impact from the shift, as Verizon pulls DSL and instead sells those users LTE services with at a high price point ($15 per gigabyte overages). Verizon then hopes to sell those users cap-gobbling video services via their upcoming Redbox streaming video joint venture. Expect there to be plenty of gaps where rural users suddenly lose landline and DSL connectivity but can't get LTE. With Verizon and AT&T having killed off regulatory oversight in most states -- you can expect nothing to be done about it, despite both companies having been given billions in subsidies over the years to get those users online.

The belief is that current DSL customers who don't want (or can't afford) the switch to the LTE service will move to Verizon's cable competition. Normally, losing customers to the competition is to be avoided, but when your new marketing partners ARE the competition, it's no big deal.

Recall that Verizon entered into an agreement with Time Warner Cable, Cox, Bright House (collectively SpectrumCo) to a purchase...

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Posted August 12, 2012 by lgonzalez

Google's fiber rollout in Kansas City prompted kudos, specualtion, wonder, and analysis. While Google has the ability to invest in such an expensive and huge undertaking. Municipal networks have been bringing next-generation broadband to the public for years.

Local communities all over the country know first hand the economic benefits and improved quality of life that come with publicly owned networks.

In his official statement on the Google rollout, FCC Chairman Julius Genachowski acknolwdged the value of community networks to America and its Broadband Plan. The official announcement:

For the United States to remain globally competitive, we need to keep pushing the boundaries of broadband capabilities and foster testbeds of broadband innovation. Abundance in broadband speeds and capacity – moving from megabits to gigabits – will unleash breakthrough innovations in healthcare, education, business services, and more.

Today’s announcement by Google, the Gig.U projects across the country, and similar continued advances by providers and municipalities are important and welcome developments that are pushing frontiers in speed and bandwidth, while also enhancing consumer choice. As outlined in the National Broadband Plan, it’s vital both that we connect every corner in America to broadband and that we spur next-generation innovation through next-generation broadband networks. (Emphasis added by us.)

Posted August 2, 2012 by christopher

Of all the broadband stimulus projects, the Lake County FTTH network in Minnesota has been one of the most embattled in the nation (possibly only behind AT&T's attacks on South Carolina projects).

Mediacom has pulled out all the stops, including filing complaints with the Inspector General that included dubious allegations at best and then complaining after the Inspector General investigated and found nothing worth following up on.

What we have here is a company that wants to block a project that will deliver essential infrastructure to thousands of people who are presently lacking access. Why? Because part of that project will overlap with an outdated and overpriced Mediacom cable network that prefers its subscribers to have no choice in providers.

Recall that this is a part of the nation where a single fiber cut previously cut off all communications for 12 hours. Police could not run plates, no business could call outside the North Shore or run credit cards, ATMs were useless, 9-11 ceased functioning, and US Customs and Border Protection needed to use Canadian communications.

Minnesota Public Radio ran a solid article that explained the need for real broadband up there. It starts by talking about a local business, Granite Gear, that has suffered from the lack of proper access. (The rest of the quotes in this article come from that article.)

"The upload speeds that we have available to us here, are such that our art director frequently comes in at night and does that, when no one else is tying up the Internet bandwidth," Johnson said.

To help businesses like Granite Gear and solve the internet woes of northeast Minnesota residents, Lake County began stringing fiber Tuesday in Two Harbors, which is on Lake Superior's North Shore....

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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 6, 2012 by lgonzalez

If you live in Boston, Baltimore, Albany, Syracuse, or Buffalo, you won't be getting FiOS from Verizon. Absent any public investment, you will likely be stuck with DSL and cable... like 80% of the rest of us.

Not long after Verizon announced it would cease expanding FiOS, we learned that Verizon was coming to an arrangement with the cable companies that would essentially divide the broadband market. Verizon won't challenge cable companies with FiOS and the cable companies won't challenge Verizon's "Rule the Air" wireless domain.

For a while now, the FCC has reviewed a potential deal for a Verizon purchase of Comcast's wireless spectrum. The possible deal involves multi-layered questions of anti-competitive behavior, collusion, and corporate responsibility. 

Along with many other interested parties, such as the Communications Workers of America, Free Press, Public Knowledge, and  the five towns are publicly opposing the deal. They have expressed their derision to the FCC but whether or not they will influence the result remains to be seen.

From a FierceTelecom article by Sean Buckley:

Curt Anderson, chair of the Baltimore City Delegation to the Maryland House of Delegates, expressed...outrage on the agreement the telco made.

"Under this transaction, Baltimore will never get a fiber-optic network, and the city will be at a disadvantage," he said. "The direct job loss will be the hundreds of technicians that would be employed building, installing and maintaining FiOS in the area. The indirect costs of this deal are even higher: the lack of competition in telecommunications will raise prices and reduce service quality.

And:

The deal, said Albany Common Council President Carolyn McLaughlin, "is not in the best interest of those who need to get and stay connected the most and is "a step backwards in bridging the digital divide."

Though these five cities...

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Posted May 26, 2012 by christopher

Free Press caught and isolated an excellent question from Senator Frank Lautenberg (D-NJ) to FCC Chairman Genachowski during recent hearings. The Senator notes that many Americans do not have sufficient access to broadband but 19 states have enacted barriers to make it harder for communities to build their own.

FCC Chairman said he thinks innovative municipal solutions should be encouraged and that he looks forward to working with the Committee to address the obstacles. 

Posted May 16, 2012 by christopher

One of the reasons we so strongly support local, community owned broadband networks over European-like regulations on private companies is that large institutions regularly game the rules. We wrote about this last year, when Free Press called on the FCC to stop Verizon from ignoring the rules it agreed to for using certain spectrum.

Senator Franken, who has taken a strong interest in preserving the open Internet, has just reminded the FCC that creating rules does no one any good if it refuses to enforce them.

Not only has Comcast announced that its own Netflix-like service does not count against its bandwidth caps, some researchers found evidence that Comcast was prioritizing its own content to be higher quality than rivals could deliver. Comcast has denied this charge and proving it is difficult. Who do you believe? After all, Comcast spent years lying to its own subscribers about the very existence of its bandwidth caps.

The vast majority of the network neutrality debate centers around whether Comcast should be allowed to use its monopoly status as an onramp to the Internet dominate other markets, like delivering movies (as pioneered by Netflix). Comcast and many economists from Chicago say "Heck yes - they can do whatever they like." But the vast majority of us and the FCC have recognized that this is market-destroying behavior, not pro-market behavior.

So when Comcast was allowed to take over NBC Universal, it agreed to certain conditions imposed by the FCC to encourage competition. But the FCC has a long history of not wanting to enforce its own rules because it can be inconvenient to upset some of the most powerful corporations on the planet. Plus, many of the people working in telecommunications policy for the federal government will eventually make much more money working for...

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Posted February 15, 2012 by christopher

The absurdity of AT&T's push to define broadband as 200kbps is so great, it boggles the imagination. We developed the graphic below to highlight just how slow 200kbps connections are.

200kbps is not good enough for communities

Feel free to spread it around. Higher quality pdf below.

Posted January 26, 2012 by christopher

I recently stumbled across a great point regarding the spectacular failure of the US (mostly the FCC, but Congress should certainly share some of the blame) to properly regulate broadband connections to the Internet. US policy results in a few massive providers dominating the market. Fred Goldstein, a principal of Interisle Consulting Group, wrote the following:

In truly competitive markets that display some degree of commodity-like characteristics, large and small vendors tend to coexist. I'm drinking coffee right now, which is a good example. Maybe Maxwell House and Folgers (and their parent companies) have a large share of the market, competing on price for their swill. But there is plenty of room for others to differentiate their product. Dunkin and Starbucks have built huge chains on their own style of semi-premium product, while another couple of niches of premium and superpremium beans are easy enough to find. Food markets tend to be like this; check out any Whole Foods (a/k/a The Museum of Modern Vegetables) for a supply of priced-above-commodity products. I feel foolish for selling most (not all, thankfully) of my Whole Foods stock when it was in the dumps a couple of years ago.

The same thing happens in many fields. Apple itself sells computers above commodity price levels. There's a whole "high end" audio business catering to those who like to show off how much they can afford to spend. The automobile industry has mass-market commodity cars and several premium tiers.

Internet access in the US lacks that because the natural monopoly on outside plant is not properly regulated. If it were treated here by EU norms, then any number of ISPs could access the wire. Some would just be cheap; some would offer premium help desks among their services. That doesn't happen, however, when the usual number of "competitors" is two. Even more so when those competitors agree that they should divide up markets between themselves rather than overbuild, or (heaven forbid) let outside information providers onto their facilities.

The wire should be regulated. ISPs shouldn't.

Amen. Physical connections are a natural monopoly. Even if the economics supported many physical providers, having so many would be terribly inefficient. Much better to have networks that are owned by the community and have independent service providers competing to deliver services -- just like the roads.

Posted January 10, 2012 by christopher

The Minnesota Public Utilities Commission is hosting an informational meeting on Thursday, January 12, at 1:00. For those who cannot make it in person, it will be webcast here.

The PDF announcement is here.

The Minnesota Public Utilities Commission will convene an informational meeting in the format of panel discussion to examine the implications of the FCC Order with respect to (i) universal service funding, (ii) intercarrier compensation and (iii) the substantive and procedural tasks that the Commission can be expected to face in the coming months.

The meeting will commence with opening remarks by Commission Chair Ellen Anderson and
Commissioner Michael Rothman of the Minnesota Department Commerce. The panel
discussion will be moderated by Commissioner Betsy Wergin. The panelists are:

  • Jeff Lindsey; CenturyLink
  • Brent Christensen; Minnesota Telecom Alliance
  • Dan Lipschultz; Moss Barnett PA, competitive carrier perspective
  • Tom Cohen; Kelley, Drye Warren LLP for the American Cable Association
  • Dave Conn; T-Mobile
  • Dennis Ahlers; Minnesota Department of Commerce.

The Commission will welcome questions from attendees as time permits.

I would have specifically liked to hear how the rural telephone coops would be affected by the inter-carrier compensation changes as those charges have helped many rural communities gain access to broadband. Apparently, the MTA rep will represent their viewpoint.

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