Tag: "monopoly"

Posted August 7, 2018 by lgonzalez

For years, national cable and telecom companies have complained that they work in a tough industry because “there’s too much broadband competition.” Such a subjective statement has created confusion among subscribers, policy makers, and elected officials. Many people, especially those in rural areas, have little or no choice. We wanted to dive deeper into the realities of their claim, so we decided to look at the data and map out what the large carriers offer and where they offer it. In order to share our findings with policy makers, local elected officials, and the general public, we’ve created a report that includes series of maps to illustrate our findings and our analysis, Profiles of Monopoly: Big Cable and Telecom.

Download the report.

Choice, Data, the FCC

In this analysis, we examined Form 477 Data from ISPs and submitted to the FCC. While the data paints a grim picture of where competition truly exists, those who read the report should remember that Form 477 Data breaks down information into census blocks. As a result, the Form 477 overstates broadband service availability and the size of coverage areas. With this in mind, we believe the reality on the ground is even worse than what FCC data shows. 

In the report, we shared our thoughts on the data from the FCC:

We have deep hesitations about using this data because of its many inaccuracies, but there is no other feasible option. In any event, this provides a conservative baseline for the problems in the market - though we believe the true level of competition is worse than this analysis shows, neither is tolerable in a country that claims to support a market-driven solution for supplying broadband Internet access. 

Important Findings

We broke down data from some of the largest ISPs by the numbers they serve and the areas where they serve. The report provides insight into where each...

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Posted August 7, 2018 by lgonzalez

If you haven’t already taken a look at our most recent report, now is your chance to get some insight before you download it and dive in. Profiles of Monopoly: Big Cable and Telecom, written by our Hannah Trostle, recently left ILSR to attend grad school, and Christopher Mitchell, transforms FCC Form 477 data into a series of maps that reveal a sad state of competition in the U.S. broadband market. For episode 317 of the podcast, Hannah and Christopher discuss the report and the main findings.

Download the report here.

Hannah and Christopher provide more insight into the main findings of the report, which analyzes where competition exists and where large national providers fail to invest. The result ultimately creates densely populated areas with more competition for broadband (as defined by the FCC) than rural areas. Due to their de facto monopolies, the top national providers capture huge segments of the population.

Hannah and Christopher also talk about the quality of the Form 477 data and the need for better benchmarks, we learn about why Hannah and Christopher felt that it was time to take the data and turn it into a visual story. You’ll learn more about their methodology in developing the maps and their analysis. Hannah, who created the maps that make the foundation of the report, shares some of the surprises she discovered. The two talk about the Connect America Fund and the policies behind the program and how the results have aggravated lack of broadband in rural America and how cooperatives are picking up the slack where big corporate ISPs are failing rural America.

cover-monopoly-report-2018_0.png If you want to learn more about how cooperatives are running circles around the big ISPs in rural areas, download our 2017 report, Cooperatives Fiberize Rural America: A Trusted Model for the Internet Era.

Read the transcript of the show here.

We want...

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Posted July 31, 2018 by lgonzalez

For years, national cable and telecom companies have complained that they work in a tough industry because “there’s too much broadband competition.” Such a subjective statement has created confusion among subscribers, policy makers, and elected officials. Many people, especially those in rural areas, have little or no choice. We wanted to dive deeper into the realities of their claim, so we decided to look at the data and map out what the large carriers offer and where they offer it. In order to share our findings with policy makers, local elected officials, and the general public, we’ve created a report that includes series of maps to illustrate our findings and our analysis, Profiles of Monopoly: Big Cable and Telecom.

Download the report.

Choice: The Ultimate Prize

Whether it’s a brand of breakfast cereal, a model of car, or an Internet Service Provider (ISP), those who purchase a good or service know that when they have more options, the options they have are better. The FCC defines "broadband" as connectivity that provides speeds of at least 25 Megabits per second (Mbps) download and 3 Mbps upload; our report fouces on service where ISPs claim to offer this minimum threshold. 

When it comes to ISPs, subscribers often have a faux choice between unequal services, such as one telephone company offering slow DSL and one cable company that offers faster cable Internet access. People in rural America often have even slimmer options because cable ISPs don’t provide broadband in less populated rural areas. In other words, the market has spoken and the market is broken.

In this analysis, we examined Form 477 Data from ISPs and submitted to the FCC. While the data paints a grim picture of where competition truly exists, those who read the report should remember that Form 477 Data breaks down information into census blocks. As a result,...

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Posted June 19, 2018 by lgonzalez

As of June 11th, federal network neutrality protections formally expired, thanks to Chairman Ajit Pai and the other Republican Commissioners at the FCC. In the months leading up to the vote, Pai has continued to press the talking point that the market will protect consumers. Now is a good time to pull out our infographic from last year, "The Market Has Spoken. The Market Is Broken," to remind Chairman Pai that a broken market isn’t much protection.

Is a Broken Market Able to Protect Anyone?

If people Americans aren’t satisfied with their current ISP, they should just switch, right? That’s why we have a competitive market — so subscribers who are unhappy with one Internet service can switch to another, right? Sounds great, but when there is no competition where you live, “you’ll take what you git and you won’t throw a fit.” At least, that’s what monopoly providers expect.

Our infographic addresses national ISPs that deliver services in both urban and rural areas. Time and again, consumers report that they’re dissatisfied with companies such as Comcast, AT&T, and CenturyLink, but with no options in many areas, there is no recourse. Now that we know approximately 177 million Americans live under the shadow of ISPs that willingly offend network neutrality policies, the faulty market is a more important issue than ever.

National ISPs know the monumental task ahead of new entrants, but also know that if subscribers get a taste for something better, big companies will lose their advantage and subscribership. In order to keep their position at the top of the heap, they invest millions of dollars each year into lobbying at the state and federal level. By advancing legislation that effectively blocks smaller players and municipalities from developing new and better services, Comcast, AT&T, and others can maintain their monopolies.

Our infographic looks at some hard numbers and offers examples of solutions. When communities find a way to get past the big telecom and cable industry stranglehold, they can thrive with local control and accountability.

Check out a larger image here.

...

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Posted May 4, 2018 by lgonzalez

At this year's Broadband Communities Summit in Austin, Texas, the Coalition for Local Internet Choice (CLIC) hosted a special program on April 30th. As part of the program, Blair Levin presented the keynote address. His comments focused on the process used by the FCC's Broadband Deployment Advisory Committee (BDAC) as they examine connectivity in the U.S. and make recommendations on the best ways to expand deployment.

Levin is a strong, open minded advocate for universal broadband access. He's currently Non-Resident Senior Fellow from the Metropolitan Policy Project at the Brookings Institution, but he's also Executive Director of GigU and advises both private and public organizations. Levin has held past stints at the Aspen Institute and the FCC where he oversaw the development of the National Broadband Plan; he's filled many other roles throughout his career. Levin's many years in public, private, and academic sectors have given him experience and an understanding of a wide range of challenges. He’s also obtained a keen insight into possible outcomes. In his keynote address, Levin predicted that the current BDAC process needs to be improved or wealth will find its way to private enterprises with nothing to gain for the public.

In his speech, Levin noted his own experiences with both local and federal governments and that the former were typically “responsive, pro-active, effective and respected in building communities that improve the lives of their residents.” He goes on to state that he believes that local governments need more authority and freedom if we are to move the country forward.

Levin believes that the BDAC is a good idea — bringing multiple stakeholders in the conversation on how we can deploy broadband faster in the U.S. After all, whether we rely more on wireless solutions or FTTP, we need to deploy more fiber and do it faster and more efficiently. He also believes that it’s important to achieve a balance when considering best practices due to the intimidating economics of network deployment. He also goes on to note that there has been some value achieved from BDAC, including the recommendation that states adopt one touch make ready policies.

In his speech, Levin addressed in detail what he...

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Posted April 25, 2018 by lgonzalez

Everybody likes to watch a good film and if it involves drama, government at its highest level, and the deep pockets of corporate America, there's sure to be intrigue. We've found an independent film project that people interested in telecommunications policy and the Internet should consider backing. "The Network," a documedia project directed by Fred Johnson will take a look at how the Internet has come to be controlled by only a small number of large and powerful corporate entities.

There are only a few days left to contribute to the IndieGoGo account so this project can move forward and we encourage you to consider adding "independent film producer" to your resume. We occasionally produce videos and have worked with Fred, so we know that he is committed to a quality result. And, hey, a movie about Internet policy? How cool is that, amIright?

And check out this cool trailer!

From Fred:

We have interviews lined up with former FCC Commissioners, Nick Johnson and Michael Copps, former FCC Special Counsel Gigi Sohn, writer and professor, Fred Turner, author of From Counterculture to Cyberculture and The Democratic Surround, and activist Anthony Riddle, Senior VP of Community Media, BRIC TV, Brooklyn. More to come.

The Trump Federal Communications Commission’s decision to do away with Net Neutrality protections makes it very clear we are in the midst of real crisis in U.S. communications policy: the underlying public interest agreements between the public, government and U.S. commercial communications corporations have broken down. The Facebook hearings in Congress marked the moment when the failed free market communications policies of the last 4 decades have revealed their ultimate logic: we now have monopoly social media platforms surveilling our networks, and unregulated monopolies (that are really utilities) selling us overpriced access to our networks. With no government oversight of any significance.

I know you are probably thinking we are knee deep in crises right now, but, if we can't find a way to control our communications infrastructure as a utility, it's going to be far more...

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Posted January 30, 2018 by lgonzalez

Suddenlink passed up the opportunity to offer connectivity in Pinetops, North Carolina, for years until now. About a year after a bill in the General Assembly gave nearby Wilson’s municipal network the ability to serve the tiny community, Suddenlink is taking advantage of the law to enter Pinetops and push Wilson’s Greenlight Community Broadband out.

Suddenly Suddenlink

One of his constituents called Town Commissioner Brent Wooten last October to share a conversation he'd had at work in nearby Wilson. Wooten's constituent had encountered a Suddenlink employee who told him, "We're coming to see you in Pinetops." The company had sent out a notice to employees that overtime would be available because Suddenlink was planning to run fiber from Rocky Mount to Pinetops.

Wooten hadn't heard anything from Suddenlink; neither had any of the other Commissioners. All he knew was that the company had been reducing staff and cutting costs ever since being acquired by Altice in 2015.

A Little History

While events that put Pinetops (pop. 1,300) in the national spotlight began in February 2015, the story has roots that go back further. Officials in Pinetops, recognizing that better local Internet access keeps small rural communities from wasting away, approached several providers years ago requesting better Internet infrastructure. Suddenlink’s service area ends about two miles outside of Pinetops town limits. Nevertheless, Suddenlink wasn't willing to bring cable service to Pinetops. CenturyLink didn't want to make investments to upgrade the community's old DSL solution; the community had no options from national providers.

Not far from Pinetops sits Wilson, North Carolina, where the city of about 49,000 enjoys the benefits of a publicly owned fiber optic network, Greenlight. Pinetops officials asked Wilson to expand Greenlight to their town, but state law precluded Wilson from offering broadband beyond county lines. Pinetops and the local Vick Family Farm, a large potato manufacturer with international distribution, were both desperate for better services, out of reach, and out of options because no other ISP...

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Posted December 20, 2017 by lgonzalez

On December 14th, FCC Chair Ajit Pai and the Republican Commissioners voted to present a huge holiday gift to big ISPs by dismantling network neutrality, despite outcries from the American people. When we examined FCC data to determine how many Americans would be left without market protections from known network neutrality violators, the numbers were discouraging. Now we’ve reached into the weeds to analyze the numbers on a statewide basis. 

Percentage Of Population

The results reveal that a significant percentage of Americans will be limited to Internet access only from large monopolies that have a history of violating network neutrality and very strong incentives to abuse their market power. 

Some states with higher population benefit slightly from competition relative to others — compare Florida’s 40 percent to 65 percent in Pennsylvania — but this also reflects the anti-competitive nature of big ISPs that tend to cordon off sections of the country and respectfully stay within their zones. Other, more rural states, such as Wisconsin at 66 percent, have few options because national ISPs just aren’t interested in serving areas where population is sparse and the pay-off is a long time coming. Lack of competition means high probability of service from one of the big four known violators in our study — AT&T, Verizon, Comcast, and Charter.

In this chart, we've listed states in order of greatest percentage of impacted population: 

...
State Population Served Only By Big 4 Net Neutrality Violators
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Posted December 7, 2017 by lgonzalez

The FCC is scheduled to decide the fate of Internet access on Thursday, Dec 14. Will anyone anywhere in the U.S. be able to pay one basic fee to access information on the Internet from the most popular to the most arcane content providers? If all indications are correct, probably not. ISPs will increasingly decide on what terms we access the content we want. Prepare for your bills to go up. 

You might wonder why the FCC is so focused on rolling back such an overwhelmingly popular policy in favor of giving more power to the most hated corporations in America. It isn't because the most recent rules to codify the long-standing principle of non-discrimination has harmed investment. It hasn't

But something struck us about the lobbying campaigns around this issue. This graphic from the Sunlight Foundation shows just how hard the top telecommunications companies and their lobbying associations have focused on defeating network neutrality. The image shows lobbying reports generated by lobbyists and whether or not the entity is opposed (red) or in favor of (green) network neutrality. As you can see, the amount of red coming from the ISPs that serve most of America vastly outstrips the green.

Lobbying-Reports-Mentioning-NN.png

Seeing Red

Since the Sunlight Foundation published this graphic in 2013, the landscape has changed in important ways. The two top firms supporting network neutrality were taken over by big monopolists that oppose maintaining an open Internet.

In 2015, Verizon acquired AOL for $4.4 billion and CenturyLink recently completed its acquisition of Level 3. CenturyLink, which sued the FCC over Title II reclassification, does not support network neutrality. The next strongest net neutrality supporter was Google, which took a quieter position in the 2015 debate over Title II but has...

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Posted October 31, 2017 by lgonzalez

What monster makes you tremble? Chills you to the core? Sends shivers through your soul? Could it be…the Monopoly Monster? Count Comcast? The Mummy from the Last CenturyLink?

We know how you feel and to help ease the fears that quicken your pulse when your open your monthly Internet access bill, we’re reanimating several goodies from Halloween 2015. We’re haunted by how these still ring true!

Enjoy, download, share!

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