Tag: "competition"

Posted March 2, 2013 by lgonzalez

Community leaders from several Georgia cities made the trek to Atlanta to oppose HB 282 on Thursday, February 28th. Opposition to this bill to limit investment in Internet networks includes community leaders, high tech companies, and citizens all over the state. Nevertheless, legislators on the House Energy, Utilities, and Telecom Committee chose to ignore the needs of communities, prefering to tell them from afar how to run their towns. Winners? Incumbents Windstream, AT&T, CenturyLink, and Comcast.

A substitute bill [PDF] was introduced that exempts communities with municipal electric utilities from the prohibtion to provide telecommunications. Additionally, the bill's definition of "broadband service" is now defined as service equal to or greater than 3.0 Mbps. "in the faster direction." While these look like compromises at first blush, they do very little to change the real world application of the bill.

Our earlier analysis of the bill addressed the fact that the expense and time required  to prove locations of unserved areas as defined by the bill, would foreclose the possibility of communities making investments in this essential infrastructure. Likewise, communities that already have networks would be similarly burdened.

While the muni electric exemption is clearly aimed at cities that might oppose the bill, community leaders from some of those target cities strongly spoke out against the revised HB 282. Elberton, Thomasville, and LaGrange, are a few of the communities who sent representatives and all know the power of...

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Posted March 1, 2013 by christopher

Several high tech companies and trade associations have sent a joint letter to Georgia legislators to oppose HB 282, a bill designed to limit investment in Internet Networks.

The letter has already been signed by Alcatel-Lucent, Google, Atlantic Engineering, Gigabit Squared, OnTrac, FTTH Council, American Public Power Association, NATOA, SEATOA, Utilities Telecom Council, and the Telecommunications Industry Association. The full letter is available here [pdf]:

Dear Chairman Parsons:

We, the private-sector companies and trade associations listed below, urge you to oppose HB 282 because this bill will harm both the public and private sectors, stifle economic growth, prevent the creation or retention of thousands of jobs, hamper work force development, and diminish the quality of life in Georgia. In particular, HB 282 will hurt the private sector in several ways: by curtailing public-private partnerships; by stifling the ability of private companies to sell equipment and services to public broadband providers; and by impairing economic and educational opportunities that contribute to a skilled workforce from which businesses across the state will benefit.

The United States must compete in a global economy in which affordable access to advanced communications networks is playing an increasingly significant role. As Federal Communications Commission Chairman Julius Genachowski recently noted in calling for broadband providers and state and municipal community leaders to come together to develop at least one gigabit community in all 50 states by 2015, “The U.S. needs a critical mass of gigabit communities nationwide so that innovators can develop next-generation applications and services that will drive economic growth and global competitiveness.”The private sector alone cannot enable the United States to take full advantage of the opportunities that advanced communications networks can create in virtually every area of life.

As a result, federal and state efforts are taking place across the Nation, including Georgia, to deploy both private and public broadband infrastructure to stimulate and support economic development and job creation, especially in economically distressed areas. HB 282 would prevent...

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Posted February 22, 2013 by lgonzalez

Last year, we reported on the failed SB 135, which would have eliminated the "carrier of last resort" requirement in the state. The bill, sponsored by Republican Senator Paul Hornback would have let AT&T decide who could receive basic telephone service and would have limited consumer protections.

Last year's bill did not become law, but a progeny, SB 88, has already passed in the Kentucky Senate and was received in the House on February 15th. (We'd like to report what committee will hear it first but the Kentucky Legislative web has not yet published that information.) Senator Hornback is again the chief author of the bill, crafted by AT&T and its ALEC pals.

The Kentucky Resources Council (KRC) provides an analysis of SB 88 and a prognosis on how it would affect Kentuckians. KRC must be feeling deja vu, as are many organizations looking out for rural dwellers who depend on their landlines. These bills continue to be introduced year after year as large telecommunications companies spend millions of lobbying dollars, also year after year.

WMMT, Mountain Community Radio in Whitesburg, Kentucky, recently reported on the legislation. Sylvia Ryerson spoke with Tom Fitzgerald from KRC, who discussed the analysis. From KRC's report on the legislation:

At potential risk is the opportunity for existing and new customers, to obtain stand-along basic telephone services from the incumbent telephone utility, or “Plain Old Telephone Service (POTS)” as it is called. Those most adversely affected by this loss of access to basic, stand-alone, telephone service are those least able to obtain affordable and reliable alternatives – those who live in rural, lower density areas, and the poor in dense, urbanized areas who have no affordable alternative priced as low as POTS.

...

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Posted February 19, 2013 by christopher

Have you heard of the National Information Infrastructure, or the NII? Most of us either haven't, or have forgotten we once knew what it could be. Dewayne Hendricks joins us to remind us what it was and why we should care. It's "kind of a big thing." Since we conducted this interview, unlicensed spectrum issues became a hot topic; listen below to get a better sense of just how important this issue is.

In our discussion, Dewayne walks us through the original vision, one that now seems fanciful: a world of mobile devices that interconnect with each other on the wireless networks that surround us. While we do have wireless networks in most places, they are often controlled by a few companies, like Verizon and AT&T, that restrict how we can use them and how our devices can talk to each other.

But the NII was to be more decentralized, creating much more space for entreprenuers and innovators to create new business models. A few massive corporations were able to change that vision, creating a lucrative role for themselves as gatekeepers along the way.

Dewayne started this conversation by recommending a 1995 filing by Apple [pdf]. Whether you read it before or after our conversation, it is worth taking a look.

Dewayne has previously joined us to discuss wireless generally and then later to talk about the wired vs. wireless debate. A previous interview with Bruce Kushnick is also referenced over the course of this interview.

Read the transcript from this discussion 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 subscribe via iTunes...

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Posted February 13, 2013 by christopher

In the 30 hours since we learned of a bill in Georgia to revoke local authority to decide for themselves if a broadband network is a wise investment, we have seen a big response! Some of that is detailed below, but what matters for now is that HB 282 was bumped from today to next week.

The committee roster is here, please keep spreading the word and making phone calls. If you have contacts in Georgia that want more detail, send them our way.

The Georgia Municipal Association Blog quickly explained why this bill limits the ability of towns to attract jobs to their communities.

The fundamental question is rather simple, does Georgia want local leaders to determine the economic and investment strategies for their communities or do we want those decisions to be made solely on the business plan of companies based outside of the state?

And they go on to quote the former City Manager of Adel:

After much deliberation and public demand, the City of Adel launched our wireless internet system, Southlink, in 2003. There were NO INCUMBENT, HIGH-SPEED PROVIDERS at that time with no indication of interest by anyone. The City of Adel did what no investor-owned company would consider, yet the citizens and businesses in Adel deserved the service just as much as those citizens of Atlanta, Macon, Augusta or Savannah. The business plan worked and we gained customers. Within four years of our launch, both Alltel and Mediacom launched true high-speed service to the area. With our original intent served, we then dismantled the wireless system in 2009 and 2010 and the citizens had service options.

We did not launch the service to compete with incumbent providers and we gave them every chance to provide the service. Did our positive action create the impetus for other providers to bring in their service? I will let you decide that.

And finally, the video below notes how the city of Thomasville benefited from building its own network.

Karl Bode, of DSL Reports,...

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Posted February 12, 2013 by christopher

Glasgow was a true pioneer in community owned broadband networks, starting with its own cable plant in the 1980s. Billy Ray, CEO of Glasgow Electric Plant Board, has been an inspiration for municipal broadband networks -- one can't dig into the early history of LUS Fiber in Louisiana without running into something from Billy Ray, for instance. Glasgow's network has been a tremendous success, resulting in tens of millions of dollars of benefits to the community.

In our interview, we discuss the bitter legal fights of the early years as Glasgow built its own cable network and eventually began offering Internet access. Additionally, we discuss the important role of these information networks in creating more efficient (and less costly) electrical systems -- an incredibly important implication that does not get enough coverage.

Given the extraordinary history of Billy Ray and Glasgow EPB, we hope this will be the first of several conversations exploring that community. You can read more from Billy Ray on his blog.

Read the transcript from our call here. Also, we created a video on Glasgow called The Birth of Community Broadband.

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 27 minutes long and can be played below on this page or subscribe via iTunes or via the tool of your choice using this feed. Search for us in iTunes and leave a positive comment!

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

Find more episodes in our podcast index.

Thanks to mojo monkeys for the music, licensed using Creative Commons.

Posted January 29, 2013 by christopher

Common Cause's Todd O'Boyle and myself have just published an opinion piece in the North Carolina News & Observer to highlight the foolishness of the General Assembly revoking local authority to build broadband networks.

Todd and I teamed up for a case study of North Carolina's most impressive fiber network, Greenlight, owned by the city of Wilson and then turned our attention to how Time Warner Cable turned around to lobby the state to take that right away from communities. That report, The Empire Lobbies Back, was released earlier this month.

An excerpt from our Op-Ed:

The Tar Heel economy is continuing its transition from tobacco and textiles to high technology. Internet startups populate the Research Triangle, and Charlotte’s financial services economy depends on high-quality data connections. Truly, next-generation Internet connections are crucial to the state.

It is deeply disturbing that the Federal Communications Commission ranks North Carolina at the bottom nationally – tied with Mississippi – in the percentage of households subscribing to a “basic broadband” connection. The residents and businesses of nearly every other state have superior connections.

Read the whole thing here.

Posted January 28, 2013 by christopher

This post comes to us from Patrick Lucey of the Open Technology Institute at the New America Foundation. The post was originally published there, but we are excited to feature it here as well.

Last month my colleagues and I at the the Open Technology Institute released a paper titled “Capping the Nation’s Broadband Future?” The paper examines data caps, an increasingly common practice where internet service providers charge individuals a fee if they exceed a monthly threshold on the data they use. The paper discusses how data caps are not a solution to network congestion concerns, nor a reflection of increased costs due to more people being online. A review of public financial documents for Comcast shows their broadband network operating are decreasing. Other costs, like bandwidth transit, are decreasing as well. Instead, data caps are a reflection of a lack of competition in both the home and wireless broadband market. 

As if to hammer home the larger point about a lack of competition, a few days after releasing the paper I received the following flyer in my mailbox. It is a promo piece from a joint marketing agreement between Comcast and Verizon Wireless where they promote each others’ services. Signing up for Verizon Wireless service will give me a discount on my home Comcast subscription. 

Although this agreement was approved by the FCC and Department of Justice, this kind of chummy behavior between supposedly rival companies is hardly a sign of aggressive competition. Verizon FiOS is often cited as the main competitor to incumbent cable companies, even though Verizon officials have stated the company is not expanding FiOS to new markets.  

At a recent public event, Vint Cerf, recognized as one of the creators of the...

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Posted January 24, 2013 by christopher

Given the frequent claims of lobbyists for the cable companies regarding how incredibly competitive the broadband market is in the United States, I thought we might want to hear what John Malone, one of the most aggressive cable CEOs ever (TCI) has to say on the subject. He is now with Liberty, a media company among other things. Last year, in an investor call, he said,

Really, I think the cable business in the U.S. looks very attractive. It looks like the telcos are not going to aggressively overbuild cable with fiber and so, cable has a definite advantage when comes to high speed broadband, which seems to be something the public is totally in love with.

...

But no, I think cable is very strong on the broadband side and I think the threat of wireless broadband taking away high speed connectivity is way overblown. There just is not enough bandwidth on the wireless side to substantially damage cable's unique ability to delivery very high speed connectivity. So I think everybody is going to do well in this mix.

I excised some middle comments that were also interesting - suggesting that cable may lose video customers but will do very well by continuing to grow broadband subscribers (a much higher profit margin service).

For years, we have been saying that wireless is not a competitor to wired (specifically cable) and that there is no danger of competition when it comes to cable. Nice to see the insiders agree. Now if the we could just get the FCC to listen to those comments rather than the those of lobbyists...

Credit to Susan Crawford's new book, Captive Audience, where I read it first.

Photo courtesy of JSquish via Wikipedia Commons

Posted January 23, 2013 by christopher

Six minute interview from Susan talking about the failure of policy in America to expand access to fast, affordable, and reliable networks.

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