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Does AT&T Really Own the Wisconsin Legislature? Battle Over WiscNet Continues
There are many places to find information about AT&T's war on WiscNet, a great credit to those who recognize the importance of WiscNet to schools, libraries, and local governments around the state. The best article on the subject may be from Wisconsin Tech News (WTN), with "UW faces return of $37M for broadband expansion in 11th hour bill." This post builds on that as a primer for those interested in the controversy.
Update: Read a Fact Check Memo [pdf] from the University of Wisconsin Extension Service with responses to false allegations from AT&T and its allies.
Synopsis
AT&T and its allies have long made false claims against WiscNet, setting the stage for their lobbyists to push this legislation to kill it. AT&T and some other incumbents want to provide the services WiscNet provides in order to boost their profits. WiscNet not only offers superior services, it offers services the private providers will not provide (including specialized education services). For instance, from the WTN article:One of features that differentiates WiscNet from a private broadband provider is allowing for “bursting,” so that during isolated periods when researchers send huge data sets, they greatly exceed the average data cap. UW-Madison currently uses seven gigabits on average, and would have to procure 14 gigabits under the new legislation, even though most of the extra seven gigabits would seldom be in use, Meachen [UW CIO] said. “We'd be paying for the fact that researchers have to send these huge data sets, and not have it take hours and hours to get to where it's going,” Meachen said. “You can't afford to pay for that extra 7 gigabits from the private sector because it's too costly. They increase your charges based on that.” A private network would not have the necessary capacity for scientists on the UW-Madison campus, who are some of the leading researchers on next generation Internet.
Leading Critic of Community Network in NC Revealed to Be TWC Employee
It will come as no surprise to those familiar with this space that the leading critic of MI-Connection, a cable network in North Carolina owned by local governments, has been revealed to be an employee of Time Warner Cable. Hat tip to Stop the Cap! for bringing it to our attention last night.
We have long watched massive cable/phone companies flood public meetings (both honestly and surreptitiously) with their employees to give the perception of widespread opposition to a publicly owned network. So while this is nothing new, the practice must be highlighted as something community networks should be aware of -- much like the rampant abuse of the commenting system in the Salisbury Post, where any story that mentions the community fiber network Fibrant is slammed by a few people who post under many different identities to give the impression of widespread disapproval.
MI-Connection has been plagued by problems since buying a system that was in considerably worse shape than expected, thus requiring more capital to rehab and upgrade it. An additional problem has been the image damage done by relentless critics (noted last week):
Venzon [Chairman of Board for MI-Connection] said he’s frustrated because the publicly owned company still fights an image problem. “With the improvements we made to the system, I thought that people would be lined up out the door,” Venzon said. “I thought they’d see this as ours, this is us, and it just bugs me that we get such poor PR out there. We have not won that battle.And now we know that a major critic of the network works for Time Warner Cable, a company vociferously opposes muni networks as a threat to their de facto monopoly.
The Broadband Jungle of Marketing, Hype, and Lies in Volusia, Florida
I have little to add to the excellent work done by Stop the Cap! calling out Bright House for their many misleading and false claims, some of which came up in a story about the Daytona Regional Chamber of Commerce pushing Volusia County to investigate an investment in fiber-optics to help local businesses.
Of course Bright House said it would be unnecessary because they already offer everything anyone could ever want from a broadband connection. Absurd.
Karl Bode also weighed in - this is a good example of the misleading claims communities can expect when they start investigating broadband -- particularly if they may do anything to threaten the cable/phone duopoly that has so underinvested in broadband across the U.S.
Martin County Explores Uses for Network It is Building
Martin County, Florida, is building a county-owned network (that we wrote about back in September) in response to gross overcharging by Comcast for the connections they need to connect their City Departments.
The County Commission voted unanimously Tuesday to allocate $100,000 to pay experts to advise county officials about ways the new broadband network the county government is constructing could be used to generate revenue as well as promote economic development and job creation.
...
Precision Contracting Services of Jupiter started construction on the $4.2 million network in January and is expected to finish the project by January 2012. The network is expected to serve 280 government, public safety, educational and health care organizations.
Having committed to building a network to meet their own needs, they are now searching for ways to leverage that investment to best meet community needs. They will evaluate laws, conduct a survey of residents and businesses to find what their needs/desires are, and possibly develop a business plan.
Last Monday, the day before the planned vote, a Comcast regional VP had the gall to ask the County Commissioners to delay their vote. No thanks Comcast, these folks have waited long enough for the broadband they need, that you have no interested in delivering in a timely nor affordable manner. On Tuesday, the Council voted unanimously to approve the contract.
Good for them.
Mediacom Falsely Accuses Lake County Communities of False Statements
In a situation similar to the Frontier letters to Sibley we published last week, the cable company Mediacom has sent letters to Silver Bay and Two Harbors in Lake County to scare them into abandoning the rural county-wide FTTH network that they are building with federal broadband stimulus aid.
Interestingly, rather than sticking to the normal fear, uncertainty, and doubt (FUD) campaign, Mediacom apparently based its threats on a draft previous version of the joint powers ordinance rather than the language actually passed by the resolutionsincluded in the current JPA. Whoops. [See Update below]
Mediacom, perhaps you should focus on improving your networks rather than stifling potential competition. Please send us copies of letters your community network has received from incumbent providers.
Without further ado, here is the letter [download pdf] sent to Silver Bay and Two Harbors on December 21, 2010 by Tom Larsen, VP of Legal and Public Affairs for Mediacom:
Re: Joint Powers Agreement with Lake
County Dear Mayor Johnson:
Mediacom prides itself in being one of America's leading providers of telecommunications services to small and medium sized communities. As you may be aware, Mediacom offers a highly competitive suite of high-speed Internet, cable television and phone services to homes and businesses throughout Silver Bay (the "City").
It has come to our attention that the City passed a resolution on November 15, 2010 approving a Joint Powers Agreement with Lake County (the "JPA"). Given the significant private capital that Mediacom has invested in order to make advanced telecommunications services available throughout the City, we were extremely surprised to learn that your resolution approving the the JPA includes the following finding in Section 4(e):
Frontier Forces FUD on Cities in Sibley: Sibley Responds
The fiber-to-the-farm initiative in Sibley County, Minnesota, has completed the feasibility study and the towns involved are discussing a Joint Powers Agreement. One of the impacted incumbent providers -- Frontier Communications, a rural telco famous for slow DSL) -- has started to spread the usual FUD (fear, uncertainty, and doubt) that is common whenever a massive company is about to face competition.
Though I am tempted to comment directly on Frontier's letter, I'll let the community's response stand on its own. The way they misrepresent the record of Windom should be instructive - this same misinformation strategy is used around the country. We believe publishing these scare tactics and responses to them is helpful to everyone -- so if your project has received one, please let us know.
Frontier's Letter:
Dear Commissioners:
As a provider of telephone, internet, and video services to our customers in the Green Isle, Arlington, and Henderson areas, Frontier Communications is obviously interested in the "fiber to the home" proposal that has been presented. As a nationwide provider, Frontier is aware of other efforts by municipalities of various types to build and operate their own telecommunications network. While these proposals are always painted in rosy tones, it is important for officials to carefully review the underlying assumptions and projections that consultants make when presenting these projects. Unfortunately, history tells us that the actual performance of most of these projects is significantly less positive than the promises. Often times, these projects end up costing municipalities huge amounts of money, and negatively impact their financial status and credit ratings.
A nearby example would be WindomNet, the city-owned network in Windom, Minnesota. That network, which provides telephone, internet, and video service, began in 2005. The financial results to date have been poor; operating losses of $662,000 in 2006, $1,257,000 in 2007, $326,000 in 2008, and $93,000 in 2009. Additional borrowing by the city was required to make up those losses.
I thought you said you had Internet...
The next time you hear someone claiming that the reason US Internet is slower than international peers is because of our vast landmass with low population density, encourage them to listen to "America the Slow" on American Public Media's Marketplace Tech Report.
The title of this post comes from an anecdote in the middle of the story in which a person in NYC (the most dense area of our country) is hosting friends from France and they turn to him and say "I thought you said you had Internet?" in response for what passes as broadband there. I'm sure they laughed for hours if they found out what the host was paying for it.
Our sad state of broadband is not an inevitability of geography but a failure of policy that puts private companies first and community needs second.
And for the record, the population distribution in France is not so different from the US.
Salisbury's Fibrant Deals with Incumbent B.S. Before Launch
As Salisbury prepares to officially launch its publicly owned FTTH network offering triple-play services, it offers lessons for other communities that want to follow in its footsteps. As we wrote a month ago, Fibrant has candidly admitted it cannot win a price war with incumbents. Companies like Time Warner Cable have a tremendous scale advantage, which allows them to price below cost in Salisbury because the large profits from all the non-competitive markets nearby can subsidize temporary losses.
On October 10, the Salisbury Post ran a story "Fibrant can't match cable company specials." Alternative possible titles for the article could have been "Cable Co cuts prices to drive competition from market," or "Time Warner Cable admits customers pay different prices for same services." Interestingly, when Fibrant unveiled its pricing originally, the headline read "Fibrant reveals pricing" rather than "Fibrants offers speeds far faster than incumbents."
A lesson for community networks: do not expect the media to cover you fairly. The big companies have public affairs people with relationships with the press and they often buy a lot of local advertising. This is not to say all local media is bought off -- far from it -- but local media will have to be educated about the advantages of community networks.
Quick question: When you hear this quote, who do you first think of?
"We always work with customers to meet their needs and budget."The cable company, right? Well, that is Time Warner Cable's claim in the above Salisbury Post article. Later in the article, a local business owner expressed a different sentiment: "Time Warner has the worst customer service I have ever dealt with." The business owner goes on:
“Fibrant may have these same kind of issues, however I can actually go to the source to deal personally with someone who is vested in the community, not spend two hours on the phone and never solve the problem as I do with TWC,” he said. “Even if pricing is higher, I would make the change.
Opelika Votes Yes, Will Build Smart-Grid Fiber Network
Despite a coordinated campaign by cable incumbent Charter that offered little honest debate or accurate claims, the citizens of Opelika voted yes on their referendum to allow the city to build a broadband network. The City's public power utility will use the network for smart-grid services and a private company will likely contract to deliver triple-play services.
Opelika's Mayor had this reaction:
This video is no longer available.
Mayor Fuller also said:
It’s a great day for Opelika. It’s a great day for our future. It’s a terrible day for Charter,”One gets the sense that the Mayor took some umbrage at Charter's tactics to prevent the community from building its own network. The day before the election, Stop the Cap! ran a fantastic article about Charter's manufactured opposition to the community network. Phillip Dampier investigated the background and claims of prominent opponents, including Jack Mazzola, who might as well have written some of the articles in the local paper about the Smart-Grid project for how often he was quoted by the reporter (who often failed to offer a countering view from anyone in support of the network).
Jack Mazzola claims to be a member of Concerned Citizens of Opelika and has become a de facto spokesman in the local press. He claims he is “30 years old and have been a resident of Opelika for almost two years.” During that time, he evidently forgot to update his active Facebook page, which lists his current city of residence as Atlanta, Georgia. Suspicious readers of the local newspaper did some research of their own and claim Mr. Mazzola has no history of real estate or motor vehicle taxes paid to Lee County, which includes Opelika.Any community considering a referendum on this issue should read this Stop the Cap! post and learn from it because massive cable companies like Charter all use the same tactics in community after community.
UTOPIA Confronts Critics, Continues New Strategy
More towns in Utah are deciding whether to support UTOPIA's new plan to expand the network and recover from the significant errors of the first managers. Under the new management, UTOPIA has added new ISPs and thousands of new subscribers, a significant turn around for a network many had written off as a failure.
Unfortunately, UTOPIA has too much debt and no capital to expand the network to bring new subscribers online. As we have consistently maintained, building next-generation networks is challenging in the best of circumstances - and the circumstances around the towns in Utah are far from ideal.
Most of the information in this post comes directly or indirectly from the Free UTOPIA blog which has excellent independent coverage of the network (as well as stinging critiques of wasted opportunities like the broadband stimulus).
I strongly recommend following FreeUTOPIA, but I wanted to comment on some of the recent developments.
As UTOPIA and some member cities have formed a new agency to fund further expansion. Five cities have agreed to be part of the new Utah Infrastructure Agency with at least 2 deciding against and more still considering what they want to do. The Salt Lake Tribune has tepidly endorsed the plan (which involves some changes regarding rogue providers - something I want to follow up on).
The Utah Taxpayers Association (which is funded by Qwest and Comcast, among others) decided to mount a big protest in Orem to convince the City to abandon UTOPIA. Rather than simply waiting to see what effect the rally would have, UTOPIA responded decisively.
The Utah “Taxpayers” Association thought it would get an upper hand with a BBQ in Orem just before the city council voted on a new construction bond.