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competition
Content tagged with "competition"
Rise of Comcast Linked to Slower US Internet Speeds
This is an older column, but the introduction is so dead-on, I wanted to draw more attention to it:
If Dwight Eisenhower had General Motors and George W. Bush had Halliburton, Barack Obama arguably has Comcast. US presidents are often linked to one or two corporations that donate a lot of money to them and then benefit from their actions. Comcast, which is America’s largest cable television and internet provider and is a near monopoly in most of its largest cities, is no exception.
The company’s meteoric rise in the past decade parallels the relative decline of internet service in the US.
It comes from an Edward Luce column in the Financial Times from February. He goes on to note the strong ties between the FCC and Comcast and between Comcast and President Obama. Remember that President Obama has golfed with Comcast CEO Brian Roberts and the CEO is on the President's Council on Jobs and Competitiveness.
Susan Crawford's Captive Audience offers a good examination of Comcast, the threat it (and other massive cable corporations) poses to our communities, and just how savvy it is in lobbying.
Don't be shocked as this Adminstration continues to push wireless and other telecommunications "solutions" that don't threaten Comcast's market domination of cable. Between a dysfunctional Congress and an inevitably interest-group-compromised Executive Branch, communities are on their own.
Crap Cable Threatens Cloud Services
As a patriotic American, I find the current political atmosphere where telecom lobbyists set the agenda to be a nightmare. All over the world, high-end fiber is being deployed while powerful monopolies in the United States work to prevent it from coming here. Some of those monopolies are even drafting "model legislation" to protect themselves from both community broadband and commercial competition.He nails a number of important points, including the absurdity of allowing de facto monopolies to write the legislation that governs them. However, Andew Oliver's article is a bit muddled on the issue of "monopoly." I have argued with several people that the term "monopoly" has historically meant firms with large market power, not the more stringent definition of "the only seller" of a good. It is not clear how Oliver is using the term. Because of this confusion, you can come away from his piece with the firm idea that it is primarily government's fault we have a duopoly of crap DSL and less crappy cable. He repeatedly says "state-sponsored monopolies." However, no local or state government may offer exclusive franchises for cable or telecom services and the federal government hasn't officially backed monopolies for decades. This is a key point that many still fail to understand - a majority seem to believe that local governments bless monopolies when local governments actually are desperate for more choices. This is why they fall all over themselves to beg Google to invest in their community or they build they own networks (over 400 communities have wired telecom networks that offer services to some local businesses and/or residents). Poor laws and regulations have helped the massive cable and telephone companies to maintain their status - that is why they spend so much on lobbying and political contributions at all levels of government.
Monticello Fiber Price War Offers Key Lessons for Broadband Competition
Chattanooga Cements Status as Best Network in the Nation
Video streaming by Ustream The Washington Post covered the story, including several quotes from me.
DePriest tells me that EPB's fiber network is "a great profit center." In the four years the service has been active, the utility company has increased its mid-tier speeds three times — from 15 Mbps to 30 Mbps, from 30 Mbps to 50 Mbps and now from 50 Mbps to 100 Mbps. About 2,500 elite users will enjoy 1-gig speeds by the beginning of October.Phil Dampier has more coverage at StoptheCap.com, including an analysis of AT&T and Comcast competition.
AT&T charges $65 a month for 24/3Mbps service — its fastest — with a 250GB monthly usage cap, currently not enforced. For $5 more, EPB customers get 1,000/1,000Mbps with no usage limits or overlimit fees.A recent article in the Chattanoogan noted that Chattanooga had surpassed 50,000 subscribers and was on path to surpass Comcast in subscriber base locally.
Mr. DePriest said Comcast had some 122,000 customers on the EPB grid when EPB launched its rival program. He said Comcast is down to around 75,000 and will likely drop to around 60,000 next year.
Countering Crazy Talk, Volume 3, for Episode #62 of Community Broadband Bits Podcast
Comcast Reacts to Google Fiber in Provo
The sale of iProvo to Google Fiber means that Comcast now gets to compete against Google's gig - Time Warner Cable is the incumbent cable company in Kansas City and Austin. Comcast wasted little time and has improved its bundle in Provo long before any new customers are turned on. The Free UTOPIA blog recently reported that Comcast, in response to the incoming competition, is increasing speeds. Jesse writes:
Competition is good, and Comcast is just now proving it. I spoke with one of their sales guys who confirmed that Comcast will be offering a package of 250Mbps/50Mbps for $70 starting in September, but only in Provo. (Sorry, everywhere else.) This is in direct response to Google Fiber coming to town and will include a new modem with a built-in 802.11ac router to take advantage of the speed bump. It’s unknown if this speed tier will land in any other cities in the future.
This is yet another story proving that having a fiber network in your town benefits everyone, not just subscribers.
This is compelling evidence that markets with only choices between DSL and cable are not sufficiently competitive, regardless of what wireless options are available. When threatened with a competitor that it cannot harm with its legions of lobbyists in the state capital or the threat of predatory pricing, Comcast responds with investment and lower prices. Regulators should take note.
Roosevelt Institute Examines Comcast's Internet Essentials
In 2011, Comcast commenced its Internet Essentials program with great fanfare from then FCC Chairman Julius Genachowski. We looked at the program in detail and described Comcast's decision to withhold the program for two years to use as a carrot in a bid to secure the NBC merger. In addition to acquiring NBC, Comcast received great public relations press.
The Roosevelt Institute's Next New Deal Blog, recently ran an article by John Randall in which he examined the program in depth. He concludes that the program is an effective distraction from the real problem - lack of competition. In addition to placating policy makers to prevent meaningful changes, the program turns a hefty profit for Comcast and efficiently mines for new customers.
The program, touted as a way to reduce the digital divide, established onerous criteria to qualify for the $9.95 monthly service. Children in the household must qualify for the National School Lunch Program, there cannot be any unfinished business between the household and Comcast, participants must be new customers, and households must be located in an area served by Comcast.
I have had my own experience with the Internet Essentials program. My small family qualified and we now receive up to 3/1 Mbps from Comcast; prior to the program, we paid twice as much for 1 Mbps Wi-Fi. Randall is correct when he describes the program as a "customer acquisition program." A common expression goes "The slowest speed you will accept is the fastest speed you've experienced." So true. As more of my kids' homework depends on a usable Internet connection, we will need to sacrifice somewhere else to keep our 3 Mbps and we will do it. Our choices are limited because competition is scarce, even though we live in a major metropolitan area. Comcast, you have us. Nicely played!
If Comcast really wanted to help close the digital divide, it would make Internet Essentials a permanent program and ease the restrictions. I qualify because my kids qualify but there are millions of other people, including single adults and seniors, who do not and they need the Internet just as much as I do.
Spanish Fork Discusses Stunning Success - Community Broadband Bits Podcast #60
No High-Speed in Manchester: European Commission Rules Preempt Local Authority
Though we often discuss some of the ways European nations have surpassed the U.S. in Internet network investment, they also have some counter-productive rules that limit investment. The Manchester Evening News recently published an article about a plan to bring high speed Internet to a deprived area of 30,000 homes where access is either slow or absent. From the article:
European rules ban public subsidy being used to fund infrastructure where – in theory – a company could roll it out instead.
The Manchester Council planned to use public funding to bring the homes into the 21st century, but the European Commission blocked the plan. Because Internet providers say there is not enough demand for broadband access in the areas, they are not compelled to build there.
Sound familiar?
“Part of this involves trying to address the digital divide which means that some parts of Manchester have little or no high speed broadband coverage because commercial internet service providers, such as BT, Virgin and Talk Talk and others, claim there is not enough demand. We have tried hard to address this but it has become clear that Europe-wide regulations mean our hands our tied and we cannot help provide connections where the private sector is able, but not willing, to do so," [said Manchester Coun Nigel Murphy].
This serves as a reminder that Europe also has a variety of bad policy approaches that privilege massive corporations over local authority. We hope to see people there step to defend their rights to be locally self-reliant.