Tag: "boston"

Posted May 21, 2011 by christopher

With so many community broadband stories breaking this week, I did not dig into an update to Boston seeking authority to regulate some cable rates in response to the many rate hikes they have endured from Comcast. Boston's mayor has previously complained about basic cable rate increases.

The Ars Technica story offers some good regulatory background that limits the power of Boston to do much about rates.

According to the City, Comcast's 2011 Basic Service Rate change went from $13.30 to $15.80 a month. This came in the wake of previous rate hikes—to $9.05 in 2008, to $10.30 in 2009, and to $13.30 in 2010.

That all adds up to "more than 60%, on a service that is supposed to be affordable and is identified in the industry as ‘lifeline service'," Boston says.

"In addition, when comparing Boston to neighboring communities that have rate regulation, Comcast has over-collected approximately $24 million from Boston's Basic Subscribers during the four year period from 2008 through 2011," the City's statement claims. Its own research indicates that neighboring cities that are still regulated, such as Cambridge, have cheaper rates.

This has led the Boston Globe to editorialize "If cable firms act as monopolies, cities should be able to regulate.

When the Federal Communications Commission took away Boston’s power to regulate basic cable rates almost a decade ago, the assumption was that competition for pay-TV services would hold prices down for consumers. That assumption has not panned out. Comcast Corp., the successor to Boston’s original cable franchisee, still dominates — not least because its former monopoly status conveys lingering advantages that hamper competition even now. Those advantages help explain why Comcast’s charges for basic cable — now $15.80 a month for a package of 35 channels, according to a city report — have risen by 75 percent since 2008.

We are strong proponents of public ownership (via local government, coops, or nonprofits) in part because the regulatory environment leaves communities practically no...

Read more
Posted July 24, 2009 by christopher

A recent editorial in the Boston Globe caught my attention - Fiber-optic nerve. It seems that Boston is tired of waiting for private companies to build modern broadband networks in the city.

The editorial suggests that as Verizon has started building its FTTH FiOS in New York City, D.C., and some of the Boston suburbs, it may be a withholding the network from Boston due to the Mayor's efforts to change a state law that has exempted telecom companies from paying a number of taxes. Verizon denies any connection. From the editorial:

Menino is right to insist that telecommunication companies pay their fair share of taxes. In Boston, the exemption shifts more than $5 million a year onto the property tax bills of homeowners, say city officials. But tensions between Verizon and the mayor can be costly in many ways. City cable providers Comcast and RCN, for example, don’t offer the speedier fiber-optic connections into customers’ homes available from Verizon in 98 Massachusetts cities and towns. The new and faster broadband speeds - both downstream and upstream - offered by Verizon to Internet customers therefore remain beyond the reach of Bostonians, as do FiOS-related incentives on products such as mini netbooks and camcorders. Cable and Internet competition is alive and well in the suburbs, but flat in Boston.

Verizon has previously threatened to withhold its investments in states that do not sufficiently deregulate -- after turning its back on the New England region by offloading its customers on the totally unprepared Fairpoint company, Verizon pushed franchise "reform" in Massachusetts. Franchise "reform" is when states agree to preempt local communities that selfishly want to regulate the quality of service offered by providers - things like requiring some local channels and thresholds for customer service. As Karl Bode noted in the link above:

While these bills are promoted as a magic elixir that will bring competition and lower TV prices to a region, when people go back to investigate whether these bills actually helped anybody (which is amusingly rare), data indicates that TV prices increased anyway and consumers got the short end of the stick. State lawmakers are usually no match...

Read more

Pages

Subscribe to boston