Tag: "dsl"

Posted January 30, 2012 by christopher

We have long been arguing that the telephone and cable companies are not sufficiently investing in the connections needed by communities.

Quarter after quarter, companies offering DSL see decreases in their lines as subscribers jump to cable or fiber-optic alternatives (where available, which is not many places). Recall that AT&T's CEO himself believes DSL to be obsolete.

As this trend continues, most communities will find that a single cable company has a monopoly on high speed broadband access and those willing to settle for slower, less reliable alternatives will have a choice between DSL and wireless options. Susan Crawford has written about this, terming it the Looming Cable Monopoly.

The main reason is that cable is cheaper to upgrade to higher capacity connections than the telephone lines. Unfortunately, due to the reality of natural monopoly, the big cable companies will almost certainly continue to dominate in their communities. It is just too hard and risky for other businesses to challenge their market power.

This is why smart communities are evaluating all their options and determining if a long term public investment in fiber-optic infrastructure would generate enough benefits to justify the high upfront cost.

Posted January 3, 2012 by christopher

It's a new year, but most of us are still stuck with the same old DSL and cable monopolies. Though many communities have built their own networks to create competition and numerous other benefits, nearly half of the 50 states have enacted legislation to make it harder for communities to build their own networks.

Fortunately, this practice has increasingly come under scrutiny. Unfortunately, we expect to see massive cable and telephone corporations use their unrivaled lobbying power to pass more laws in 2012 like the North Carolina law pushed by Time Warner Cable to essentially stop new community broadband networks.

The FCC's National Broadband Plan calls for all local governments to be free of state barriers (created by big cable and phone companies trying to limit competition). Recommendation 8.19: Congress should make clear that Tribal, state, regional and local governments can build broadband networks.

But modern day railroad barons like Time Warner Cable, AT&T, etc., have a stranglehold on a Congress that depends on their campaign contributions and a national capital built on the lobbying largesse of dominant industries that want to throttle any threats to their businesses. (Hat tip to the Rootstrikers that are trying to fix that mess.)

We occasionally put together a list of notable achievements of these few companies that dominate access to the Internet across the United States. The last one is available here.

FCC Logo

As you read this, remember that the FCC's National Broadband Plan largely places the future of Internet access in the hands of these corporations. On the few occasions the FCC tries to defend the public from their schemes to rip-off... Read more

Posted November 4, 2011 by christopher

When it comes to expanding access to the Internet across the US, the federal government has long looked first to the private sector, ignoring hundreds of years of experience showing that unaccountable private companies cannot be trusted to sufficiently invest in or govern essential infrastructure.

Inevitably, they price access to high and invest too little as they maxmize their profits -- thereby minimizing the profits of all other parts of the economy.

So let's take a little survey of the progress we see from these companies.

We have long railed against the Verizon -> FairPoint fiasco in New England that left Verizon much richer at the expense of residents and businesses in rural Vermont, New Hampshire, and Maine particularly. Well, FairPoint creditors have realized the depth of Verizon's scam and are suing Verizon for $2 billion. Read the complaint [pdf].

According to the complaint (pdf), Verizon not only made out like a financial bandit up front, but took advantage of regulatory delays to strip mine the assets of anything of value, including core IP network components, business services, and localized billing and support assets required to support the three states. Verizon then billed out their support assistance for millions per month during the very rocky transition, during which time 911 and other services saw repeated outages, resulting in millions more in refund penalties.

Karl Bode is right to criticize the state authorities that allowed this fiasco to occur. Their inability to regulate in the public interest has hurt everyone stuck in the mess. While we can expect powerful companies like Verizon to try to game the system at every opportunity, there is no excuse for making it so easy for them.

Frontier Logo

As long as we are talking about Verizon shedding its rural investments, let's take a look at how Frontier is doing since it inherited thousands upon thousands of FiOS customers as part of its recent deal with Verizon. Frontier has decided the best approach is to... Read more

Posted July 26, 2011 by christopher

Tullahoma's LightTUBe FTTH network, owned and operated by the Tullahoma Utilities Board, has attracted J2 Software Solutions to locate its headquarters in town [PDF]. Its CEO, Jerry Wright offers some background:

Wright said J2, which specializes in providing high-tech software to law enforcement agencies to handle dispatching, records management and other related functions, needed to have the highest speed, most dependable Internet service available.

He said TUB, through its LightTUBe broadband communications service, provides exactly what his company needs to thrive and expand.

"What LightTUBe has is top of the line," Wright said, adding that normal cable TV service and higher speed digital subscriber line, commonly referred to as DSL, were not adequate to meet the company’s volume and demand.

Sounds like confirmation of the story we we just wrote about AT&T's CEO admitting DSL is obsolete.

Congratulations to Tullahoma for making smart investments in its own future.

Posted July 24, 2011 by christopher

In a Q&A following a speech at the National Association of Regulatory Utility Commissioners, AT&T CEO Randal Stephenson candidly called DSL obsolete. This echoes not only our view, but that of hundreds of communities who have built their own networks upon realizing they cannot be competitive in the modern world with DSL.

Interestingly, AT&T still has millions of customers that use its DSL product. And it has announced its super-DSL offering called U-Verse is finished -- no doubt surprising many state-house policymakers that AT&T had convinced they would invest in communities.

The context of his comment was that DSL is no longer competitive with cable in broadband capacity (and often reliability) -- something we documented in our video comparing different types of networks. We would argue that U-Verse itself is not competitive with cable due to its greatly constrained upstream speeds -- even worse than cable networks typically experience.

So, to recap -- we have yet another admission from the private sector that it is delivering obsolete broadband services to our communities. How can there be any surprise that so many more communities are considering building their own networks to create economic develop, increase quality of life, and generally be competitive in the digital economy.

If AT&T can barely keep up with the investment necessary for our communities, how can far less profitable companies like CenturyLink and Frontier? They can't. But that doesn't stop them from advertising the hell out of their obsolete networks. Smart communities will choose self-determination rather than betting on last-generation networks run by distant, unaccountable corporations.

Posted July 5, 2011 by christopher

Update: You can also watch the video over at the Huffington Post, in our first post as a HuffPo blogger.

While we were battling Time Warner Cable to preserve local authority in North Carolina, we developed a video comparing community fiber networks to incumbent DSL and cable networks to demonstration the incredible superiority of community networks.

We have updated the video for a national audience rather than a North Carolina-specific approach because community fiber networks around the country are similarly superior to incumbent offerings. And community networks around the country are threatened by massive corporations lobbying them out of existence in state legislatures.

Feel free to send feedback - especially suggestions for improvement - to broadband@muninetworks.org.

Without further ado, here is the new video comparing community fiber networks to big incumbent providers:

Posted January 27, 2011 by christopher

The Netflix Techblog has released a graph of performance by Internet Service Provider - which I modified to demonstrate the Looming cable monopoly as identified by Susan Crawford (and recently discussed here by Mitch Shapiro).

Netflix Speeds by Provider

The trend is unmistakable.  There are 2 distinct groupings - the cable providers all beat the DSL providers (Verizon is in the middle, likely due to its fast FiOS speeds averaging with much slower DSL connections).  At the very bottom is Clear's 4G WiMax - you know, the superfast wireless that is the key to fast broadband!  

Communities need to read this chart and take a lesson: the future of broadband is not pretty if you do not have a network that puts your needs first.  Cable broadband speeds are increasingly more rapidly than DSL, meaning a local monopoly on high speed broadband, with DSL slowly becoming the modern dial-up.

Posted January 21, 2011 by Mitch Shapiro


In late 2007 I wrote an essay [pdf] for FTTH Prism arguing that it makes increasing sense for municipalities and incumbent local exchange carriers (ILECs) to cooperate in bringing open-access fiber-to-the-home (FTTH) service to America’s small towns and rural areas.

As readers of this web site well know, such a cooperative model stands in sharp contrast to the typical reality faced by poorly-served communities wanting to connect their businesses and households to a community-owned fiber network. In virtually all such cases, the ILEC, though refusing to deploy its own FTTH network--or even provide high-speed DSL service to the entire community—will fight tooth and nail to stop construction of a community-owned fiber network.

In my essay I acknowledged that ILECs had yet to show any signs of shifting from their “kill all muni-nets” attitude to one that views open-access municipal FTTH networks as a means to better compete with cable without taking on the substantial capital investment associated with a FTTH upgrade. But I added that:

“it remains to be seen whether these [anti-muni-net] attitudes will withstand the mounting competitive pressures facing ILECs in the large number of markets in which they are not planning to deploy fiber-rich, video-capable networks. In these markets, the combination of cable VoIP and triple-play bundles, wireless replacement, and low-cost web-based services will increasingly turn what were once “high-margin” copper customers into either low-margin copper customers, or negative-margin non-customers.”

Among the trends I cited as pushing ILECs to reconsider their staunch resistance to muni-nets was the fact that, in markets where they don’t deploy their own FTTH networks, they will fall farther and farther behind in terms of broadband speeds, especially as cable operators ramp up their deployment of next-generation DOCSIS 3.0 technology.

In the face of this increasingly threatening competitive trend, I suggested that ILECs seriously consider leveraging their existing customer base and expertise to become retail providers on state-of-the-art muni FTTH networks, which can deliver much faster (and more symmetrical) speeds and better service quality than cable—even after the latter deploys DOCSIS 3.... Read more

Posted January 4, 2011 by christopher

Susan Crawford has coined the expression "looming cable monopoly" to describe important changes in the Internet access arena. We have long discussed the ways in which FTTH represents a natural monopoly -- the first entity to build a FTTH network is likely to be the only one. What we haven't discussed how cable networks are similarly edging DSL-dependent telcos out of the market.

Fortunately, Susan Crawford has recently been casting light on this trend -- and her work has been picked up by Ars Technica (the finest tech reporters in the biz for my money).

The short version is this: upgrading cable networks to offer fastest speeds is much less expensive than upgrading DSL networks. Something not often mentioned: aside from AT&T and Verizon (who effectively mint dollars with their mobile revenues), the telephone companies have no money to upgrade their DSL networks anyway.

When the FCC took a look at this situation, they concluded that what little competition we have for broadband in the US is about to decrease (something we have long argued is a result of relying solely on the private sector for essential infrastructure). From the National Broadband Plan [pdf] on page 42:

Prior to cable’s DOCSIS 3.0 upgrade, more than 80% of the population could choose from two reasonably similar products (DSL and cable). Once the current round of upgrades is complete, consumers interested in only today’s typical peak speeds can, in principle, have the same choices available as they do today. Around 15% of the population will be able to choose from two providers for very high peak speeds (providers with FTTP and DOCSIS 3.0 infrastructure). However, providers offering fiber-to-the-node and then DSL from the node to the premises (FTTN), while potentially much faster than traditional DSL, may not be able to match the peak speeds offered by FTTP and DOCSIS 3.0.

Thus, in areas that include 75% of the population, consumers will likely have only one service provider (cable companies with DOCSIS 3.0-enabled infrastructure) that can offer very high peak download speeds.

To be clear - those "very high peak download speeds" they... Read more


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