Tag: "competition"

Posted January 13, 2015 by christopher

While at the Broadband Communities Economic Development conference in Springfield last year, I had the good fortune to catch a panel with Chris Merdon, the CIO of Howard County, Maryland.

Howard County has become an Internet Service Provider, not just to itself, but to private firms as well. To improve Internet access for businesses, it is both leasing dark fiber to existing providers and directly offering services to businesses and buildings.

We are grateful that Chris could join us for a Chris2 interview! We discuss how and why Howard County chose this strategy and how it is benefiting the community.

Read the transcript of our discussion here.

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

This show is 19 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

Listen to previous episodes here. You can can download this Mp3 file directly from here.

Find more episodes in our podcast index.

Thanks to Persson for the music, licensed using Creative Commons. The song is "Blues walk."

Posted January 9, 2015 by tanderson

At a December 15 Bozeman City Commission meeting, broadband advocates, local incumbents, and city staff all had their say on the idea of an open access network. The hearing was part of a process that began last year, when the idea of a public network was first brought up. Bozeman issued an RFP last spring for help in planning their next steps, and eventually selecting a consultant to shepherd the process from a feasibility study and public input through to final planning. We wrote in more detail about the start of this planning phase back in August.

At the December meeting, Bozeman Economic Development Director Brit Fontenot asserted that "The existing model of Internet service provision is outdated," and laid down for the Commissioners the broad outlines of plan for a public-private partnership to create an open access network involving anchor businesses, the city, the local school district, and Bozeman Deaconess Hospital. A memo submitted by Mr. Fontenot in advance of the meeting, as well as a series of other documents relating to the planning process including a consultant summary report, are available on the city’s website [PDF]. 

Several local citizens spoke on the proposal at the Commission meeting in addition to Mr Fontenot. According to the consultant, a survey of city businesses found that nearly two-thirds were dissatisfied with their current Internet service. This claim was supported by local business owner Ken Fightler of Lattice Materials, who according to the Bozeman Daily Chronicle

said that [his] company employs 50 people in Bozeman but struggles with "really abysmal Internet." They've talked to every major provider in town trying to find a better option, he said, but have found everything available involves either mediocre speeds or unaffordable pricing. 

Perhaps...

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Posted January 6, 2015 by christopher

Ever since the last time I spoke with Blair Levin on Episode 37, I have wanted to have him back for a friendly discussion about public or private ownership of next generation networks.

Though Blair and I entirely agree that local governments should be free to decide locally whether a community broadband network investment is a wise choice, he tends to see more promise in partnerships or other private approaches whereas we at ILSR tend to be concerned about the long term implications of private ownership of essential infrastructure.

In what may be the longest interview we have done, Blair and I discuss where we agree and how we differ. We weren't looking to prove the other wrong so much as illustrate our different points of view so listeners can evaluate our sides. Ultimately, we both believe in a United States where communities can choose between both models -- and some may even seek solutions that incorporate both.

Blair Levin was the FCC Chief of Staff when Reed Hundt was Chair and was instrumental in forming Gig.U. In between, he did a lot of things, including being Executive Director for the FCC's National Broadband Plan. He is currently with the Metropolitan Project at Brookings.

Read the transcript of our discussion here.

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

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

Listen to previous episodes here. You can can download this Mp3 file directly from here.

Find more episodes in our podcast index.

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Posted December 14, 2014 by tanderson

Last month, the U.S. Government Accountability Office (GAO) released a report warning of the possibility and potential consequences of ISPs instituting data caps in their fixed line plans. In effect, this could mean applying something like the tiered service charges based on usage levels that we see in the mobile sector to broadband connections in the home or office. But whereas the vast majority of Americans have a reasonable range of choice between several major and minor carriers for mobile service, the GAO notes that the same is not true in the market for broadband, which could lead to ISPs using data caps (or usage-based pricing (UBP) in their parlance) in various harmful ways:

...providers facing limited competition could use UBP [usage-based pricing] to increase profits, potentially resulting in negative effects, including increased prices, reductions in content accessed, and increased threats to network security.

The GAO has provided the FCC with a copy of its report, and urged that the agency take action on the issue, including systematically tracking information on how many consumers are impacted by fixed providers instituting data caps and developing a voluntary code of conduct for the industry. According to Ars Technica, the FCC has taken a skeptical stance on the issue, despite Chairman Tom Wheeler’s outspoken concerns on the lack of competition in the fixed broadband market. Pointing to the small number of consumer complaints on the issue so far, the FCC asserted that “it is unclear that any action is needed at this time.”

Usage caps do not just affect sophisticated users with bandwidth-intensive jobs or hobbies that require them to transfer large design files or generate and share multimedia content. This has the potential to affect kids and adults doing homework or taking classes online, people who hope to cut the cord from traditional television providers, and telecommuters. From the GAO study:

Participants also expressed concern about difficulty tracking the wide range of devices accessing their fixed data allowance and that fixed UBP may negatively affect students, people working from home, and those with lower socio-economic...

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Posted December 9, 2014 by christopher

The open access approach, which generally refers to multiple service providers offering services across the same physical network, remains a challenge for those who want to implement it. Though many communities would prefer to focus on the infrastructure rather than selling services directly in competition with existing providers, most find the approach is not feasible.

This week, Eric Lampland is back on the show to discuss what the challenges are and how the future of open access may not be what many imagine it to be. Will we be purchasing a gigabit of Internet connectivity from service providers or will we instead be directly purchasing many services directly from service providers -- whether video, health care related, or other?

Lampland is the Founder and principal consultant of Lookout Point Communications. Our previous podcast with him discussed how to justify a network from just the indirect benefits.

Read the transcript of this episode here.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address.

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

Listen to previous episodes here. You can can download this Mp3 file directly from here.

Find more episodes in our podcast index.

Thanks to Dickey F for the music, licensed using Creative Commons. The song is "Florida Mama."

Posted December 1, 2014 by rebecca

This week in community broadband, more communities are adding broadband to the list of essential utilities, and many of them are turning to Chattanooga as a model “gig city.”

As Times Free Press’s Dave Flessner reports, the great thing about Chattanooga's approach is that it’s not just about Internet. In fact, the broadband boom is really an unintended benefit of the city’s cutting edge smart grid, which keeps the city’s lights on and powers the economy as well. 

"What we're going to try to do is bring some of the brilliant people from Warner Bros., Fox, Disney and IBM down here to Chattanooga to help them get their heads wrapped around this notion that you've got to stop worrying about scarcity," [Annenberg Innovation Lab director Jonathan] Taplan said.

Last year, T-Bone Burnett, a Grammy Award winner, performed "The Wild Side of Life" from a Los Angeles studio with Chuck Mead, a founder of the band BR549 who was on stage in Chattanooga.

"They sang a song together over 2,000 miles apart," Taplin said. "That's the power of gigabit Internet. I think we're just beginning to think of the possibilities of what this thing can do."

And Android Authority’s William Neilson Jr. explores the desire for faster connections and more choices.

“Isn’t it amazing how much faster broadband speeds are in parts of the country where there are a number of broadband options available to residents? How many times am I going to write an article detailing a broadband provider telling a city that they don’t need “fast” speeds even though the city is universally angry at their lack of broadband options?”

Of course, we see the product of how increased competition brings better service even more clearly in communities that have municipal networks, not just in Google's Kansas City network. It is an outcome that all communities can achieve if they regain the authority to do so. 

In the beginning, Lafayette, Louisiana created its own utility system. And it was good. Steve Stackhouse Kaelble goes back to the very beginning of...

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Posted November 13, 2014 by tanderson

A recent vote by the Cortez city council cleared the way for a major expansion in the city’s open access network. By committing $1 million in local funds, the city unlocked a matching $1 million grant from the Colorado Department of Local Affairs, which disperses revenues from federal mineral leases in the form of a variety of economic development grants around the state.

This $2 million infusion will enable Phase II of the city’s network plan to go forward next year, making connections newly available to 400 businesses along two major highways. This builds on the existing Phase I network, which is capable of offering connections to about 650 businesses along Main Street. About 250 businesses have already signed on in Phase I, good for nearly a 40% take rate. The city plans to add 27 miles of fiber in 2015. 

The $1 million in local matching funds that enabled the Department of Local Affairs grant are pledged from a combination of sources. The network's own reserve fund will contribute $250,000, while the remainder will come in the form of interdepartmental loans from the city's general fund ($250,000) and equipment fund ($500,000). 

The city does not offer its own services over its fiber, favoring an open access model that lets independent service providers compete using its infrastructure. The network currently has seven mostly local ISPs competing for customers. The long term plan, as described by City General Services Manager Rick Smith in a Broadband Bits podcast back in May, is to build a fiber to the home network throughout the city. Smith sounds pretty determined to make that happen:

“Just because we live here in rural Cortez, there’s no reason why we shouldn’t have access to affordable broadband. It’s a necessity in today’s digital age.” 

“It would probably take more than $10 million to finish out the entire city,” Smith said. “That could take at least five years, but we have a roadmap. We have a plan.”

Cortez has taken a gradual approach towards developing its fiber...

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Posted November 11, 2014 by christopher

We first became aware of the Media Mobilizing Project through our work with the Media Action Grassroots. MMP has been working in Philadelphia to organize low income neighborhoods to improve access to the Internet and media more generally.

Hannah Jane Sassaman is the MMP Policy Director and joins us this week for Episode 124 of the Community Broadband Bits podcast. We discuss how Comcast and other cable companies are failing our communities and how MMP is using upcoming franchise re-negotiations to organize for better Internet access and other community benefits.

Read the transcript of this episode here.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address.

This show is 20 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

Listen to previous episodes here. You can can download this Mp3 file directly from here.

Find more episodes in our podcast index.

Thanks to Jessie Evans for the music, licensed using Creative Commons. The song is "Is it Fire?"

Posted November 5, 2014 by lgonzalez

Thane Packer, a Layton resident, attended a community meeting this fall to learn what he could about UTOPIA. Packer is like many others who consider his costs for Internet, TV, and phone as an important factor in whether or not to support UTOPIA. After attending the meeting, he considered the presentation and what he described as "some very heated, and some very biased opinions."

He then examined his existing triple play costs and shared his findings in a letter to the Standard Examiner. The rest of his letter is reproduced below (emphasis ours):

The total bundled bill for home phone, Internet, and a TV package was $273.63. That is $93.25 per month for the internet and home phone plus $180 for TV. The telephone service is fine but the Internet is frustrating. The signal fluctuates, is spotty and unreliable.

In Provo, because there is competition from a fiber optic network, this exact same package, which includes, total Internet, home phone and the TV package is available from a provider for only $99.94 a month.

This means that even if I didn’t use a fiber network like the one in Provo the competition price from the provider would save me $178.69 a month. That means that without the competition from a fiber system like UTOPIA, the provider stands to make, (from me) a total of $2,144.28 a year and in 25 years (the pay-off time for the current bond, for which we receive nothing) is over $53,000

If I were able to switch to fiber system here in Layton a much better service would cost even less and I can certainly find a better place to use my $53,000.

So ask yourself this question. What is your current service costing you, how much extra are you paying, and what are you getting for it? For me the advantage of saving at least $178.69 a month and getting better service for it is obvious.

So please Layton, find a way to make this or something like it work for us. A very vocal minority should not be able deprive the rest of us from better cheaper service.

Posted November 4, 2014 by christopher

We were glad to see Gigi Sohn, Special Counsel for External Affairs in the Office of the Chairman of the FCC, discussing how community broadband projects are going to play an important role in expanding high quality Internet access. 

The webcast comes courtesy of the Internet Society, which recorded this session at an event hosted by the newly formed Philadelphia Chapter of the Federal Communications Bar Association, co-chaired by Kevin Werbach, Walter Anderson and Brian Rankin.

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