Tag: "competition"

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 July 18, 2018 by lgonzalez

In June, the city of Fairlawn and the Medina County Fiber Network in Ohio recently announced that they would soon begin working together, which will expand FairlawnGig, the city's municipal network. The collaboration will boost connectivity in the region for residents and provide more options for businesses in Akron and surrounding communities.

Fairlawn Full of Fiber

Deputy Director of Public Service Ernie Staten told us that when city leaders commenced the FairlawnGig project, they promised the community that they would first build out the the entire community of 7,500 residents. They achieved their goal in May and now have a 47 percent take rate in the city. The strong numbers indicate Fairlawn’s intense need for better services than incumbents were providing. 

Staten told us that, in completing the deployment in Fairlawn, the city’s infrastructure now has a solid north-south presence. By leasing capacity on the Medina County Fiber Network (MCFN), FairlawnGig can expand in an east-west direction.

Potential commercial subscribers in Akron, east of Fairlawn, have already reached out to FairlawnGig offices, seeking more information. Staten notes that, while businesses in Akron have had access to connectivity from incumbents Spectrum and AT&T, prices are high and services are limited. FairlawnGig via the MCFN will be able to offer more options. Businesses will have access to services such as dark fiber connections, cloud services, data transport, and connections of up to 100 gigabits per second. Staten also believes that local businesses want the personal service and accountability that comes with a local provider.

Staten says that residents who live in the more rural areas west of town have also contacted FairlawnGig to find out more. FairlawnGig Fiber-to-the-Home (FTTH) gigabit service costs $75 per month or residents can opt for a 300 Megabits per second (Mbps) connection at $55 per month. Ten gigabit service for residential premises is also available and all connections are symmetrical. Voice services are also available; residents can sign up for $25 per month and receive two lines. FairlawnGig doesn’t offer video service, but makes resources available to help subscribers learn how to cut the cord to access video content.

...

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Posted June 29, 2018 by lgonzalez

A new video from Foresite Group describes the benefits and potentials of publicly owned open access networks. The company describes how a hypothetical rural town could use an open access network to provide better connectivity for residents and businesses and develop a revenue stream.

Check out this short video and take a few minutes to review our resources on publicly owned open access networks.

Municipal Owned Open Access Networks from Foresite Group, Inc. on Vimeo.

Posted April 27, 2018 by lgonzalez

Nestled along the south eastern border of Maine are Baileyville and Calais. As rural communities situated next to Canada in the state's "Downeast" region, neither town is on a list of infrastructure upgrades from incumbents. With an aging population, a need to consider their economic future, and no hope of help from big national ISPs, Baileyville and Calais are joining forces and developing their own publicly owned broadband utility.

Baileyville and Calais

There are about 3,000 residents in Calais (pronounced "Kal-iss") and 1,500 in Baileyville, but according to Julie Jordan, Director of Downeast Economic Development Corporation (DEDC), many of those residents are aging and younger people find little reason to stay or relocate in Washington County. The community recognizes that they need to draw in new industries and jobs that will attract young families to keep the towns from fading off the map.

Most of the residents in the region must rely on slow DSL from Consolidated Communications (formerly FairPoint), while a few have access to cable from Spectrum (formerly Time Warner Cable); expensive and unreliable satellite is also an option and there's some limited fixed wireless coverage in the area. A few larger businesses that require fiber optic connectivity can find a way to have it installed, but Julie tells us that it's incredibly expensive in the area and most can't afford the high rates for fiber.

Economic Development Driven

logo-baileyville-me.png Organized in 2015, the nonprofit DEDC came together with the focus on recruiting new businesses to the area and to support existing businesses. As DEDC quickly discovered, unless the region could offer high-speed, reliable Internet infrastructure, attracting new businesses and helping existing businesses expand would be extremely difficult. They also determined that new families would not be interested in Baileyville or Calais without high-quality connectivity. "It was a no-brainer," says Julie, "you have to go fiber."

One of the largest regional employers, Woodland Pulp, need fiber in order to operate and as Julie describes, "they pay up the nose" for connectivity. All their equipment is computerized and they...

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Posted April 10, 2018 by lgonzalez

Deploying, maintaining, and operating a wireless network is easy, right? You just put up your equipment, sign up subscribers, and start raking in the dough, right? Not even close, says Travis Carter, one of the co-founders of US Internet and our guest for episode 301 of the Community Broadband Bits podcast. He should know -- he's deployed both wireless and fiber networks in Minneapolis.

In this episode, we get an update on US Internet’s progress on its fiber deployment. Travis also compares what it’s like to own, maintain, and operate each type of network. There are pros and cons of each and each is better suited for different environments and situations.

Travis and Christopher also talk about some of the marketing approaches that US Internet use after being in business for several years and determining what works in the Minneapolis market. He describes how a local company can compete against the big national ISPs by giving subscribers a good product, maintaining good customer service, and keeping an eye on long-term goals.

Learn more about US Internet in episode 194 of the Community Broadband Bits podcast. 

This show is 34 minutes long and can be played on this page or via iTunes or the tool of your choice using this feed. You can also listen to the show at the Community Broadband Bits page.

Read the transcript for this show here.

You can download this mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to Arne Huseby for the music. The song is ...

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Posted March 12, 2018 by htrostle

Like many other states, connectivity across Idaho is unequally distributed. Urban areas may have a choice of one or two broadband providers while many rural areas have no options whatsoever. We have compiled the latest data from December 2016 into a map to highlight competition and show these disparities.

According to the Federal Communications Commission's (FCC) 2018 Broadband Progress Report, 98 percent of urban areas and 68 percent of rural areas in Idaho have broadband service, defined by the FCC as 25 Megabits per second (Mbps) downstream and 3 Mbps upstream. While about 1 million people in Idaho have access to two or more options, nearly half a million people are not nearly as lucky. Approximately 327 thousand of the state's 1.683 million people have only one option for broadband service, and 169 thousand still do not have access to broadband. This, however, is actually a best-case scenario.

idaho broadband competition map

Failures In Broadband Data

These statistics and this map, like most broadband data, rely on FCC Form 477. Internet Service Providers (ISPs) complete the form explaining which census blocks they serve or could serve. Census blocks are the smallest unit of measurement for the U.S. Census, and they vary in size. Rural census blocks often cover more land mass than urban areas. ISPs need only be able to offer service to one person in a census block in order to claim the entire census block. This can lead to an overstatement of how many people are actually served. The FCC launched an interactive map with this data, and FCC Commissioner Jessica Rosenworcel has invited people to submit corrections to broadbandfail@fcc.gov

census blocks may be counted even if no one takes service in them

This map of Idaho likely overstates coverage - not because the ISPs are untruthful or they break the rules they're required to follow when completing the form, but because Form 477 uses a benchmark that's too...

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Posted February 7, 2018 by lgonzalez

In an attempt to negatively influence public opinion, the incumbent cable ISP in West Plains, Missouri, was recently caught masquerading behind a phony citizens group. A real group of locals who support the community’s efforts discovered the astroturf connection and, with no way to deny their involvement, Fidelity Communications tried to rationalize away their subversive tactics to poison the project.

The Needs Of West Plains

About a year ago, we connected with City Administrator Tom Stehn, who described the situation in the south central town of about 12,000 people. Stehn told the story of how in 2015, the city decided to connect its municipal facilities with fiber and how, when word got out about the project, people in the business community approached the city. Even though local businesses could get cable Internet access, rates were up to three times higher than similar services in urban areas. There were also reliability issues that interfered with local commerce.

West Plains had also experienced significant job losses in recent years when several employers left town or closed shop. The city considered a fiber network an economic development tool and a way to keep the local hospital and MSU campus connected with high-quality connectivity. Stehn told Christopher that when new businesses considered moving to West Plains, one of the five questions they always asked was, “What kind of Internet access do you have?” It made good sense to expand the original plan to offer local businesses access to the publicly owned network.

West Plains was offering symmetrical connections to local businesses early in 2017 and had even started offering gigabit service.

The Pilot And The Incumbent

fidelity-web-logo.png The city’s effort to bring better connectivity to a wide range of businesses and residents included a pilot project in West Plains’s Southern Hills district. In the fall of 2017, the city offered gigabit Fiber-to-the-Home (FTTH) connectivity to approximately 80 businesses and 14 residences as a way to work out potential issues and refine their services.

Around the same time, incumbent...

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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 January 25, 2018 by lgonzalez

Central Virginia Electric Cooperative (CVEC) has created a five-year plan to deploy a Fiber-to-the-Home (FTTH) network to premises within its distribution area. CVEC will begin with a one-year pilot program within a limited region in order to test and prepare for the wider initiative.

More Than Internet Access

CVEC’s plan for the new fiber infrastructure will include more efficient electrical operations across its entire distribution system. CVEC plans to install approximately 4,600 miles of distribution lines and offer services to all of its 36,000 members through a subsidiary. Because so many of its members live in rural areas, they don’t have access to high-quality Internet services. CVEC serves Albermarle County and portions of 13 other surrounding counties.

"CVEC believes that access to reliable, high-speed Internet today is becoming as important as access to electricity in 1937," said CEO Gary Wood. "Give the great need for connectivity, CVEC will leverage its fiber network to provide a broadband Internet solution that will serve the community now and for the future."

One look at the comments on the CVEC Facebook page reinforces the claim that CVEC’s members lack access to high-quality Internet service: 

“You’re lucky to have DSL.” 

“No Internet or cell service just two miles from the interstate has gotten old old old fast fast fast.” 

“With an Internet bill over several hundred dollars a month for relatively crappy service, I will happily spend my money with someone who actually cares!”

“Shut up and take my money.”

Another Go At Access

Other plans to bring Internet access to members have fallen through. At a recent meeting that included the Albermarle County Broadband Authority and the Village of Rivanna Community Advisory Committee, Wood described two other failed attempts by CVEC that depended on partnerships with other entities. One involved delivering broadband over power lines and the other ended in an inability for the cooperative and its partner ISP to reach an agreement.

A 2017 feasibility study...

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Posted January 17, 2018 by christopher

Do municipal fiber networks offer lower prices than the their competitors? Yes, almost always, according to a study from Harvard's Berkman Klein Center called Community-Owned Fiber Networks: Value Leaders in America.

David Talbot, a Fellow at Harvard's Berkman Klein Center for Internet and Society, joins us for episode 289 of the Community Broadband Bits podcast to discuss the study, conclusions, and challenges. He was last on episode 162 to talk about a report they did on muni fiber in Massachusetts. 

We talk about the challenges of doing an analysis like this, the range of results, and how pricing from munis tends to not only be lower but also more transparent. 

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

Read the transcript for this show here.

You can download this mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

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

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