Tag: "monopoly"

Posted April 25, 2017 by christopher

The larger focus of our work in the Community Broadband Networks Initiative is to ensure communities have the networks they need. Our guest for Community Broadband Bits episode 250 is an expert in how markets break and the policies that make them work. 

Gary Reback is a well known Silicon Valley lawyer and Of Counsel at Carr Ferrell LLP. He also wrote an excellent book, Free the Market: Why Only Government Can Keep the Marketplace Competitive that I fully recommend. Reback has had a front-row seat to the failings of government policy that has allowed a few technology firms to garner so much market power today.

We talk broadly about markets and monopoly rather than focusing on broadband and telecommunications. This is a good introductory conversation for people unfamiliar with the real threat and harms of monopoly. 

A related conversation is my interview with Barry Lynn in episode 83.

Read the transcript of the show here.

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

This show is 25 minutes long and can be played on this page or via iTunes or the tool of your choice using this feed.

You can download this mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to Arne Huseby for the music. The song is Warm Duck Shuffle and is licensed under a Creative Commons Attribution (3.0) license.

Posted April 8, 2017 by Nick

A recent edition of State Scoop published Christopher's thoughts on the state of competition in the broadband market in the United States. In the piece, Christopher argues how incumbent Internet Service Providers translate their economic power into political power, as seen in the recent vote to strike down consumer privacy protections. He also more widely distributes our recent infographic, "The Market Has Spoken. The Market Is Broken." We've reproduced the op-ed here:

Paths for repairing a broken broadband market

Infographic & commentary: Christopher Mitchell of the Institute for Local Self-Reliance says the new anti-privacy legislation passing through Congress offers further evidence that America's broadband market is broken, but not beyond repair.

To be charitable, one of the reasons that Republicans in Congress moved so quickly to eviscerate privacy protections for internet access subscribers was an overriding belief that the market provides better protection than regulators. To be less charitable, it is possible all the lobbyist contributions to their campaigns had an impact.

But the market is not providing a check to AT&T or Comcast power. They are effectively monopolies — and as we just saw — can translate their market power into political power to wipe out regulations they find annoying.

At the Institute for Local Self-Reliance, where we work to support local economies, this broken market is a major problem. Cable monopolies are bad for local businesses, which become less competitive from paying too much for unreliable Internet access. Communities cannot thrive without high quality Internet access today. 

So we created the infographic below, which offers evidence for our claim that the market is broken. The Federal Communications Commission has documented that most households don’t have a choice in broadband providers, let alone a meaningful choice (where you actually like one of the companies you have to choose between).

Despite widespread... Read more

Posted April 3, 2017 by lgonzalez

“Monopoly” may be a fun family night activity, but if you live in a place where you have little or no choice for Internet access, it’s not fun and it’s not a game.

According to FCC data, most families don’t have a choice in Internet access providers, especially providers they like. Nevertheless, the biggest companies keep reporting increasing revenues every year. People aren’t happy with the service they’re receiving, but companies like AT&T and Comcast continue to thrive. What’s going on?

In a recent State Scoop piece, Christopher wrote: 

[T]he market is not providing a check to AT&T or Comcast power. They are effectively monopolies — and as we just saw — can translate their market power into political power to wipe out regulations they find annoying.

At the Institute for Local Self-Reliance, where we work to support local economies, this broken market is a major problem. Cable monopolies are bad for local businesses, which become less competitive from paying too much for unreliable Internet access. Communities cannot thrive without high quality Internet access today. 

We created this infographic to present the evidence showing that the market is broken. This resource also discusses why creating more competition in the current market is such a challenge. An effective way to overcome this broken market, however, is to consider what hundreds of local communities are already doing - investing in publicly owned Internet infrastructure. Our infographic offers a few examples of different models, each chosen to suit the communities they serve.

Get a larger version of the infographic here

market-broken-infographic-small-2.png

Get a larger version of the infographic here.

Kudos to intern Kate Svitavsky who created the infographic.

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Posted February 22, 2017 by christopher

One of the most recurring complaints about cable television is the bundles - people resent having to pay for channels that they do not watch. Especially when those cable prices go up consistently. The cable companies tend to absorb most of the blame and anger for this model, but they aren't entirely responsible.

To explain how the cable industry works, Public Knowledge Senior Counsel John Bergmayer joins us for Episode 241 of the Community Broadband Bits podcast. We talk about overlapping monopolies, market power, and how the cable companies themselves are somewhat imprisoned by content owners. 

As fits with our focus, we also talk specifically about how smaller firms (which includes all municipal networks) are particularly harmed by the status quo and even more harmed by the ongoing consolidation of the largest cable companies becuase they then have far greater negotiating power. 

Read the transcript of the show here.

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

This show is 30 minutes long and can be played on this page or via iTunes or via the tool of your choice using this feed.

You can download this mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to Admiral Bob for the music. The song is Turbo Tornado (c) copyright 2016 Licensed under a Creative Commons Attribution (3.0) license. Ft: Blue Wave Theory.

Posted October 28, 2016 by lgonzalez

Much like the the bone-chilling flicks celebrating eerie entertainment that dwells in the depths of our dark imaginations, monster cable and DSL Internet service providers strike terror in the hearts of subscribers…if they survive. Mesmerizing fees, hair-raising customer service, and shockingly slow connections can drive one to the brink of madness.

In celebration of Halloween 2016, our writers each selected a national ISP and reimagined it as a classic horror character. The results are horrifying! Read them here…if you dare!

 

AT&T’s Frankenmerger

frankenmerger-at&t.png

by Kate

This shocking film tells the horrific tale of a mad scientist in his quest to create the world’s largest telecommunications monopoly monster. The scientist’s abomination runs amok, gobbling up company after company, to create a horrifying monster conglomerate. Watch the monster terrorize towns across America as it imposes data caps, denies people access to low-cost programs, and refuses to upgrade infrastructure. What nightmare lies ahead? Will the townsfolk and their elected officials unite to stop the monster, before it acquires Time Warner? Watch and find out!

 

mummy-last-centurylink.png

The Mummy From Last CenturyLink

by Scott 

Archaeologists unearth the Last CenturyLink Mummy from a rural field of copper wires. Townspeople put the Mummy on display in Hard Luck City Hall. Little do they know the Last CenturyLink Mummy was once Pharaoh of DSL (Dreadfully Slow Line) service. Long ago, he was cursed by subscribers and doomed to remain in the slumber of purgatory, much like the DSL Internet access they endured. He awakes when he... Read more

Posted September 29, 2016 by lgonzalez

AT&T lawyers filed suit against Nashville just two days after Mayor Megan Barry signed the new One Touch Make Ready (OTMR) ordinance into law. The Metro Council passed the proposal for the final time, and sent it on to the Mayor, on September 20th.

Seeking Out Streamlining

OTMR was proposed by Google Fiber, which wants to enter the Nashville market by deploying an aerial fiber network. In order to do that, they need to attach fiber-optic cables to utility poles around town, but the current process is cumbersome and will significantly delay the rollout. OTMR streamlines the procedure but would allow some one other than AT&T to manage the rearrangement of wires on all poles in the Nashville rights-of-way. The telecom giant owns about 20 percent of the poles in Nashville; the city’s electric utility, NES, owns the rest.

Three Arguments

AT&T seeks a permanent injunction to stop the city from enforcing the new ordinance. They argue the city does not have the authority to enforce the ordinance - that role is within federal jurisdiction through the FCC.

They go on to state that the Metro Council does not have the authority to pass the ordinance because, according to the city charter, only the Electric Power Board the has the right to pass regulations that deal with issues related to equipment, such as poles and the cable on them. 

AT&T also asks that the court grant a permanent injunction on the basis that they already have a contract with the city relating to AT&T’s wires that are on NES poles. The contract allows the company to handle its own wires and enforcing the ordinance would basically nullify that component of the contract.

What This Is Really About

AT&T filed a similar suit in Louisville earlier this year when the Metro Council there passed OTMR; that suit is still ongoing. Google Fiber wants to serve both communities and, in typical AT&T fashion, the telecom giant is attempting to use the courts to put a block on them. Even before the final Metro Council vote, AT&T... Read more

Posted February 3, 2016 by lgonzalez

Check out this new video from the Competify coalition. The short 2-minute feature introduces viewers to Mr. and Mrs. Broadband Monopoly, who are clearly suffering from "chronic broadband access control."

Meet Mr. and Mrs. Broadband Monopoly

Competify focuses on raising awareness about the long term damage caused by lack of high-quality Internet access competition. Our livelihoods suffer when a small number of huge corporate telecommunications providers control connectivity. The coalition provides hard information on how these de facto monopolies and duopolies negatively impact our lives and how a more competitive environment can help.

Here is a statement from Competify and the Partners for the Cure:

The largest data collection ever conducted by the FCC and almost a decade of advocacy by those throughout the broadband economy have finally brought us to this long-awaited milestone — the FCC’s review of the high-capacity broadband market. As the incumbents struggle to come to terms with the fact that their own behavior has given them chronic broadband access control, they seem to be trying to blame the high-capacity broadband lines they sell for their very own conduct. Here at COMPETIFY, we have a message for those critical high-speed broadband lines: from powering schools and libraries to 5G to the Internet of Things, we think you are pretty “special.” And today is a major step toward your freedom.

It’s important to note that a very common symptom of chronic broadband access control is confusion. Indeed, the large incumbent companies have gone to great lengths to explain why the lines providing vital broadband service to our businesses, hospitals, schools, government buildings, banks and countless other indispensable institutions are “not very special anymore” and are “obsolete.” By all means, if those interests insist on that point of view, then they should have no concerns whatsoever about this proceeding, as they have obviously moved on to more “special” technologies.  In the meantime, the rest of the broadband economy anxiously awaits the FCC’s efforts to finally cure this diseased marketplace.

Visit the Competify website to learn more and to sign the... Read more

Posted February 1, 2016 by lgonzalez

For seniors, low-income residents, and the disabled in Saint Paul, Minnesota, a Comcast discount within the city's franchise agreement is not all it was cracked up to be. The Pioneer Press recently reported that, as eligible subscribers seek the ten percent discount guaranteed by the agreement, they are finding the devil is in the details - or lack of them.

This is a warning to those who attempt to negotiate with Comcast for better service. Comcast may make deals that it knows are unenforceable. 

"No Discount For You!"

For years, Comcast held the only franchise agreement with the city of St. Paul. In 2015, the city entered into a new agreement with the cable provider and, as in the past, the provider agreed to offer discounts for low-income and senior subscribers. Such concessions are common because a franchise agreement gives a provider easy access to a pool of subscribers.

It seems like a fair deal, but where there is a way to squirm out of a commitment, Comcast will wriggle its way out. 

Comcast is refusing to provide the discount when subscribers bundle services, which are typically offered at reduced prices. Because the contract is silent on the issue of combining discounts, the city of approximately 298,000 has decided it will not challenge Comcast's interpretation:

The company notes that the ten percent senior discount applies only to the cable portion of a customer's bill. Comcast has maintained that it is under no legal obligation to combine discounts or promotions, and that bundled services provide a steeper discount anyway.

Subscribers who want to take advantage of the discounts will have to prove their senior status and/or their low-income status. In order to do so, Comcast representatives have been requesting a copy of a driver's license or state issued i.d. 

CenturyLink Picks Up the Baton

In November, the city approved an additional franchise agreement with competitor CenturyLink. That agreement also provides that seniors, low-income households, and disabled residents are eligible to receive a ten percent discount. CenturyLink can, in the alternative, offer a discount of $5 off a subscriber's cable bill if a subscriber applies for the low-income discount. In order to receive this discount, the... Read more

Posted January 27, 2016 by lgonzalez

If you pay attention to state laws affecting municipal networks in Missouri, you are experiencing an unsettling feeling of deja vu right now. On January 7, Representative Lyndall Fraker introduced HB 2078, a bill much like last year's Senate anti-muni bill. Fraker is Chair of the House Utility Infrastructure Committee, where  the bill is now awaiting a hearing, so it has a good chance of being heard sooner rather than later. 

Your Phone Call Required! 

Time to call Members of the Committee, especially if any of them represent you, and let them know that you expect them to vote against this bill. It is anti-competitive, opposed to local authority, and prevents new investment. Bad bill! 

Preventing Partnerships to Maintain The Status Quo

This bill would not only make it extremely difficult for local communities to invest in publicly owned Internet networks, but would complicate and delay public-private partnerships. A number of communities across the country already own infrastructure and are exploring ways to partner with private providers who want to use it to serve schools, businesses, and residents. If a community wants to lower telecommunications costs or obtain better services, this legislation would have them first jump through a series of obscure, expensive, and cryptic hoops. This legislation creates barriers that serve no purpose except to erect hurdles that discourage local communities from finding better providers.

The requirements in HB 2078 and its companion bill SB 946 are clearly intended to limit competition - to maintain the existing de facto monopolies and duopolies within Missouri. As we have seen in places like Westminster, Rockport, and in Missouri's... Read more

Posted January 19, 2016 by christopher

For this week's Community Broadband Bits podcast, we are trying a discussion/debate format between myself, Christopher Mitchell, and Ryan Radia, Associate Director of Technology Studies at the Competitive Enterprise Institute. We have debated previously and prefer a style of seeking to flesh out the argument rather than merely trying to win it.

We start by discussing the role of incumbents in limiting competition and what might be done about it. Next we move to bandwidth caps. On both of those points, we have pretty significant disagreement.

We finish by discussing the role of conduit and poles, where we have some agreement. If you like this show, please do let us know and we'll try to have more in this style.

The transcript from this episode is available here.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below.

This show is 22 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

You can can download this Mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to Arne Huseby for the music, licensed using Creative Commons. The song is "Warm Duck Shuffle."

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