Tag: "competition"

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.

Posted January 22, 2013 by christopher

On Friday, I wrote a harsh, quick response to FCC Chairman's Genachowski's so-called gigabit challenge announced in a guest column on Forbes.

Since then, I have learned more about the 1 Gbps Challenge and I have to reiterate my frustration with it. We need the Chairman to reduce barriers to community-owned networks, not just recognize their successes. I'm not the only one reacting this way - Karl Bode has a thoughtful response as well.

Let me start by giving some credit: Thank you for recognizing that the cable and DSL companies are failing to deliver the networks communities need. This announcement should be used to pressure the existing providers to invest in their networks. It is another important piece of evidence that communities having to choose only between cable networks and a slower DSL option are being left behind.

But we need to also recognize that pressuring the existing providers to do better is not a solution in itself. Our slow, overpriced networks are the symptom of a problem, not the problem itself. The problem is that the massive cable and DSL companies are unaccountable to most of the communities they serve. Begging for more investment is better than doing nothing, but solves few problems.

I have a challenge for the FCC Chairman: Use your power to make it less of a challenge for communities to build the networks they need. For too long, you have sat silently by as massive telecommunications firms made it all but impossible for smaller entities - public and private - to build competing networks. When the FCC Chairman finally gets around to supporting communities with definitive action to reduce the many unnecessary industry-created barriers to competition, that will actually be praise-worthy.

Communities are smart to find ways of building their own networks, whether by owning and operating or finding partners to help. Nearly all the communities in the U.S. that have gigabit (and symmetrical at that!) connectivity today are served by networks owned by the community. This includes Chattanooga, Morristown,...

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Posted January 21, 2013 by christopher

We [Comcast] have one competitor.

Posted January 21, 2013 by christopher

The next time you hear someone claiming that the broadband market in the U.S. has plenty of competition, remember this statement from Comcast CEO Brian Roberts.

And so each of the last two years, we have had modest increases in the cost of the broadband service, and yet we've had tremendous sales. We're 33%, 31% penetrated. We hope someday all of America has broadband. So the goal would be 100 or 90 [percent take rate]. We have one competitor.

And over the course of that 2011 interview [pdf], Roberts makes it clear that he (correctly) regards DSL as a very weak competitor. The only problem Comcast has is in those few markets where they overlap with Verizon's FiOS (or, left unstated, in areas like Chattanooga where the community itself has built a technologically superior network).

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

Posted January 18, 2013 by christopher

In a column published today, Chairman Genachowski explains why the U.S. Needs 'Gigabit Communities.' It starts off with an accurate observation...

Walking the floor of the Consumer Electronics Show last week, I kept thinking of that line from Jaws, “You’re going to need a bigger boat.” All the Internet-connected, data-hungry gadgets that are coming to market sent a strikingly clear message: we’re going to need faster broadband networks.

... It’s essential to economic growth, job creation and U.S. competitiveness.

Yes! If only the head of the Federal Communications Commission understood what is preventing us from building those networks. Hint: It isn't a lack of demand. Google was inundated with applications for its gigabit service. Hundreds of communities have built their own networks (some of which he praises).

Local businesses get it. Mayors get it. City councils get it. And unlike Chairman Genachowski, they know what the problem is: little incentive for massive, established cable monopolies to invest in networks when they are harvesting record profits and subscribers have no other choices. Wall Street not only gets it, it actually rejoices in it!

Comcast's traditional Cable Communications continues to grow and generate copious cash flow.. We're big fans of the firm's Video and High-Speed Internet businesses because both are either monopolies or duopolies in their respective markets.

What is our FCC Chair doing about this problem? He helped Comcast to grow even bigger, with more market power to crush those rivals that he is calling on to build gigabit test beds.

Chairman G wants to spur hundreds of David's while refusing to curb Goliath's power. Bad news, Mr. Chairman, Goliath actually wins most of the time. Rather than doing his job, Genachowski is begging others to do it for him.

DC Revolving Door FCC -> Comcast

More and...

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Posted January 15, 2013 by christopher

Susan Crawford, author of the just-released Captive Audience: The Telecom Industry and Monopoly Power in the New Gilded Age, is our guest for the 29th episode of the Community Broadband Bits Podcast. A former adviser to President Obama, she has been a leading figure in the struggle to preserve an open Internet.

Susan has long been an advocate of communities deciding for themselves if a community owned network is a wise investment and recognizes the benefits of smart government policies to prevent big companies like Comcast from dominating the telecommunications arena.

We talk about her book and reactions to it -- big cable and telephone companies are attacking her under false pretenses by either putting words in her mouth or misrepresenting her main points. But we also discuss the steps concerned people can take to bring force some accountability on the big monopolies.

We have previously noted Susan's words and presentations here and we noted some Captive Audience reviews here.

Read the transcript from 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 17 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 download the Mp3 file of this episode directly from here.

Find more episodes in our podcast index.

Thanks to...

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Posted January 3, 2013 by lgonzalez

 

In late 2006, Wilson, North Carolina, voted to build a Fiber-­‐to-­‐the-­‐Home network. Wilson’s decision came after attempts to work with Time Warner Cable and EMBARQ (now CenturyLink) to improve local connectivity failed.

Wilson’s decision and resulting network was recently examined in a case study by Todd O’Boyle of Common Cause and ILSR's Christopher Mitchell titled Carolina’s Connected Community: Wilson Gives Greenlight to Fast Internet. This new report picks up with Wilson’s legacy: an intense multiyear lobbying campaign by Time Warner Cable, AT&T, CenturyLink, and others to bar communities from building their own networks. The report examines how millions of political dollars bought restrictions in the state that will propagate private monopolies rather than serve North Carolinians.

Download the new report here: The Empire Lobbies Back: How National Cable and DSL Companies Banned The Competition in North Carolina

These companies can and do try year after year to create barriers to community-­‐owned networks. They only have to succeed once; because of their lobbying power, they have near limitless power to stop future bills that would restore local authority. Unfortunately, success means more obstacles and less economic development for residents and businesses in North Carolina and other places where broadband accessibility is tragically low.

It certainly makes sense for these big companies to want to limit local authority to build next-­‐generation networks. What remains puzzling is why any state legislature would want to limit the ability of a community to build a network to improve educational outcomes, create new jobs, and give both residents and businesses more choices for an essential service. This decision should be made by those that have to feel the consequences—for better and for worse.

This story was originally posted on the ILSR website.

 

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