monopoly

Content tagged with "monopoly"

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New Report: Failed Federal Policy Generates Customer Frustration in Broadband Marketplace

Frustrated while shopping for Internet service? Blame federal policy (and monopoly power). 

A new report from the Institute for Local Self-Reliance (ILSR) examines Internet Service Providers’ (ISPs) transparency — or lack thereof — around the Internet service packages they offer. Shopping for Broadband: Failed Federal Policy Creates Murky Marketplace [pdf] finds that locally-controlled broadband networks are the most transparent around key service details. Large ISPs, on the other hand, are more likely to make information like upload speed and pricing difficult or impossible to find. 

Missing or unclear information is frustrating for anyone shopping for a new Internet service. It can make it especially difficult for low-income customers, who need to know pricing details (such as the difference between a service’s promotional price and standard monthly cost) in order to navigate the market and budget for service. Federal standards for transparency exist, but are not currently enforced in any real way by either federal regulation or market pressure.

Recently, Congress passed the Infrastructure Investment and Jobs Act, which includes new information disclosure requirements for ISPs. To underscore the value of these requirements and the need for their proper enforcement, this report offers detailed analysis of 50 of the nation’s largest private wireless, private fiber, cable, municipal, and cooperative ISPs based on how clearly they disclose basic service and pricing information. Key findings include:

Northeast Louisiana Power Co-op Reenergizes Cotton Country with Volt Broadband

North Louisiana has more premises unserved with high-speed Internet access than any other region of the state. In an effort to bring reliable Internet access to its members who have gone without service, directors of the Northeast Louisiana Power Cooperative (NELPCO) recently agreed to pursue a $54 million fiber buildout. 

During a special meeting called on June 29th, NELPCO’s Board of Directors voted 5-2 to begin providing high-speed Internet access across the seven rural parishes the cooperative serves through its wholly-owned subsidiary, Volt Broadband LLC.

The exact details of the project and how it will be funded are still being worked out. But, the cooperative is preparing to bond for $50 million to deploy fiber infrastructure across its 2,180-square-mile service territory, which runs from “south of Turkey Creek Lake in Franklin Parish north to the Arkansas line, and extends into Morehouse Parish,” according to the cooperative’s website.

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Construction of the fiber network will be completed in segments, beginning in the most populated regions and extending to the most rural, to eventually serve all 11,000 co-op members.

Investment In Public Middle-Mile Infrastructure Is Imminent

Between the U.S. Treasury clarifying that American Rescue Plan (ARP) funds are eligible to be spent on middle-mile infrastructure and the U.S. Senate’s proposed infrastructure bill directing NTIA to establish a $1 billion grant program to support the deployment of middle-mile networks, federal assistance aiming to improve middle-mile access is imminent. 

Cities and states across the U.S. have already committed portions of their federal relief funds to boost access to middle-mile infrastructure. City officials of Brownsville, Texas approved a plan in July to use $19.5 million of ARP funds to construct a 95-mile-long middle-mile broadband network. In Suffolk, Virginia, city council members set aside $5 million of relief funds for the first phase of a regional project to construct an open access, middle-mile fiber ring. 

The Governor and State Legislature of California recently settled on a $3.25 billion agreement to build statewide public middle-mile infrastructure, “one of the largest state investments in public fiber in the history of the United States,” reports Ernesto Falcon for EFF.

The sudden surge in middle-mile investment may bring about confusion over what middle-mile infrastructure is and give rise to questions over the necessity of such investments. A new fact sheet from the California State Association of Counties (CSAC) clarifies commonly held misbeliefs about investing in public middle-mile infrastructure. Read CSAC’s new fact sheet here [pdf].

Investments in Public Middle-Mile Needed to Confront Monopolies

Reporting on Broadband Issues in Buffalo, New York - Episode 460 of the Community Broadband Bits Podcast

On this episode of the Community Broadband Bits podcast, Christopher and ILSR senior reporter and editor, Sean Gonsalves chat with Nate Benson, a reporter with WGRZ in Buffalo, New York, about his approach to reporting on connectivity issues afflicting the Western part of the state. 

Benson explains the origins and results of his Fall 2019 investigation into monopoly service, including what the lack of competition has done to prices and availability in the city of Buffalo. He details his method to producing stories on Internet access that have resonated with citizens and galvanized local policymakers in the community.

This show is 37 minutes long and can be played on this page or via Apple Podcasts or the tool of your choice using this feed

Transcript below. 

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

Listen to other episodes here or view all episodes in our index. See other podcasts from the Institute for Local Self-Reliance here.

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

Biden Administration Decides Cities Should Not Use Broadband Dollars for Broadband

Earlier this year in March, the Biden Administration signed the American Rescue Plan Act, which included, among many other things, multiple sources of funds for broadband infrastructure. The U.S. Department of Treasury was tasked with writing the rules of how local governments can spend the various funds. The Interim Rule has been published and it appears to significantly limit local ability to invest in needed networks. 

The rules say that communities are expected to focus on areas that do not have 25/3 Mbps service reliably available. But there is no measure of what “reliably” means (in federal statute or otherwise). More than 90 percent of Americans have 25/3 “available” to them by best estimates. The result is considerable confusion for urban areas across the nation who no longer qualify for broadband investments under a strict reading of the proposed rules. This is not what the Biden Administration had suggested we should expect in its many press communications about its broadband approach. 

This discussion is about Section 602, which details the direct payments to local governments under the Coronavirus State Fiscal Recovery Fund. The aid offered to local governments has numerous authorized expenditures, including broadband infrastructure.

Biden Proposes Government Actually Try to Create Broadband Competition

Every week we write about the municipalities and the cooperatives that come together to bring high-quality, affordable, locally accountable Internet access to those who need it most. And it seems as if we're at a watershed moment as a nation: community solutions to broadband are poised to have their big day. 

One of the big questions that remains is who Congress and the White House will listen to in the coming weeks and months as national legislation moves through the D.C. crucible: their constituents, many of whom have spent the past year struggling to work and live on too-expensive, too-slow, or nonexistent broadband connections forged by a broken marketplace, or the monopoly ISPs gearing up for the fight of their lives to snuff out even the specter of competition so they can continue to extract profits from cities and towns large and small across the country.

ILSR's Sean Gonsalves and Christopher Mitchell have an essay out in The American Prospect which outlines both the upcoming fight and the future at stake, as the Biden Administration's American Jobs Plan positions itself to return a level of parity to local solutions in expanding broadband access and promote competition.

Read an excerpt below, but check out the whole piece here:

28 million households have only one Internet service provider offering at least the minimum broadband speed. Many of the supposed competitors are phantoms. And the number of households in areas with more than one ISP offering gigabit speed service is paltry. Only two million households have that choice, or maybe many fewer—the FCC doesn’t really know at any granular level.

Today, Internet access has been largely monopolized by a few big cable companies, even as voice and television services have become more competitive. Government officials have generally responded by seeking to remove barriers to competition, rather than embracing more deliberate pro-competition policies to better shape the markets. But that may be coming to an end.

In Our View: Grid Disaster in Texas Leads to Open Access Soul Searching

Welcome to In Our View, the first installment of a new series here. From time to time, we'll use this space to explore new ideas and share our thoughts on recent events playing out across the digital landscape, as well as take the opportunity to draw attention to important but neglected broadband-related issues.

The disaster in Texas resulting from an electric grid that was deliberately left exposed and likely to fail in rare cold weather events has received a lot of dramatic coverage, as well it should given the loss of life and damage to so many homes and businesses. It also raised some questions in my mind regarding competition and designing markets that will be discussed below. Texas was a leader in allowing different electricity firms to compete in selling electricity over the same electric grid, an arrangement that has some similarities to open access broadband approaches.

In digging into that recent electricity history, I made another interesting and relevant finding that I discuss first as part of the background to understand the lessons from Texas. In 20 years of competing models between, on the one hand, municipal and cooperative structures to deliver electricity and, on the other hand, a largely deregulated and competitive market, the munis and co-ops delivered lower prices to ratepayers.

Many of the sources used in this article are behind paywalls. We wish that weren't the case but we support both paying for news and the libraries that have databases that may allow you to track this down if you have the inclination.

Electricity Deregulation, Texas Style

More than 20 years ago, Texas largely deregulated electricity markets. Residents still have a monopoly in charge of the physical wire delivering electricity to the home, but they could choose among various electricity providers that would effectively use the wire and charge different amounts, differentiating themselves via a variety of factors, including how the electricty was produced.

This Christmas Morning, Listen to a Podcast Episode on the Future of US Broadband

On Episode 265 of the Techdirt podcast, Sonic CEO Dane Jasper joins host Mike Masnik to talk about how the broadband market in the United States is a failed competitive market, how the regulatory environment brought us from a place with thousands of Internet Service Providers (ISPs) to one where the vast majority of households have just one or two options at basic broadband speeds of 25/3 Megabits per second (Mbps), the arbitrariness of imposing usage caps and future of net neutrality, and the array of other interrelated issues that will dictate the way Internet access looks over the next decade.

Listen to it here.

Happy Holidays!

Predictions for 2021, Year in Review for 2020 - Episode 441 of the Community Broadband Bits Podcast

2020 is nearly over, and it's that time of the year we sit back with a cold glass of eggnog and reflect on what was, what is, what might have been, and what will be. In this episode of the Community Broadband Bits podcast the MuniNetworks team cranks up Zoom for the zillionth time this month to review our previous years' predictions to see who swung the hardest and missed back in 2019, and who might be hiding a secret gift at prognostication that would put Zoltar to shame.

With the departure of Lisa and Katie, GIS and Data Researcher Michelle Andrews is the only one who must reckon with her predictions head on. Also on the show are two recent arrivals: Senior Writer and Editor Sean Gonsalves, and Senior Researcher Ry Marcattilio-McCracken. Hannah Trostle returns from a short hiatus as well, to offer insight and secretly watch Chris to make sure he hasn't turned into a total despot. During the show we talk state preemption laws, progress by municipal networks, electric cooperatives, and county governments in expanding affordable broadband, the recent RDOF auction, New Hampshire, Sean's water feature, and our favorite stories of the year. 

This show is 50 minutes long and can be played on this page or via Apple Podcasts or the tool of your choice using this feed

Transcript below. 

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

Listen to other episodes here or view all episodes in our index. See other podcasts from the Institute for Local Self-Reliance here.

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

Image of John Dee’s Crystal ball by Vassil [CC0], from Wikimedia Commons.

AT&T Is Abandoning Tens of Thousands of American Households in the Deep South Who Have No Other Internet Access Option

All across the country, municipal networks, cooperatives, and cities have been putting in extra effort to make sure that Americans have the fast, affordable, reliable Internet access they need to conduct their lives in the midst of the COVID-19 pandemic. 

AT&T has decided to take another route. A USA Today report last week revealed that the company has stopped making connections to users subscribing to its ADSL Internet as of October 1st. Anyone calling the company to set up new service is being told that no new accounts are being accepted. 

The decision comes right as the National Digital Inclusion Alliance has released a report detailing that only 28% of AT&T’s territory can get fiber from the company. AT&T has deliberately focused investment in more urban areas of higher income. From the report:

The analysis of AT&T’s network reveals that the company is prioritizing network upgrades to wealthier areas, and leaving lower income communities with outdated technologies. Across the country, the median income for households with fiber available is 34 percent higher than in areas with DSL only — $60,969 compared to $45,500. 

The Deep South Hit Hardest

As of today, it looks like the most conservative number of those affected by the decision will be about 80,000 households that have no other option. Our analysis using the Federal Communication Commission’s (FCC) Form 477 data shows that the Deep South will be hit the hardest (see table at the bottom of the page). 

Collectively it means more than 207,000 Americans who, if disconnected, will have no option for Internet aside from their mobile devices or satellite service. The number of Americans affected by the decision but which have additional wireline options is higher: roughly 2.2 million American households nationwide subscribe to the service (see map, below).