On December 14th, FCC Chair Ajit Pai and the Republican Commissioners voted to present a huge holiday gift to big ISPs by dismantling network neutrality, despite outcries from the American people. When we examined FCC data to determine how many Americans would be left without market protections from known network neutrality violators, the numbers were discouraging. Now we’ve reached into the weeds to analyze the numbers on a statewide basis. 

Percentage Of Population

The results reveal that a significant percentage of Americans will be limited to Internet access only from large monopolies that have a history of violating network neutrality and very strong incentives to abuse their market power. 

Some states with higher population benefit slightly from competition relative to others — compare Florida’s 40 percent to 65 percent in Pennsylvania — but this also reflects the anti-competitive nature of big ISPs that tend to cordon off sections of the country and respectfully stay within their zones. Other, more rural states, such as Wisconsin at 66 percent, have few options because national ISPs just aren’t interested in serving areas where population is sparse and the pay-off is a long time coming. Lack of competition means high probability of service from one of the big four known violators in our study — AT&T, Verizon, Comcast, and Charter.

In this chart, we've listed states in order of greatest percentage of impacted population: 

A recent proposal being considered by the FCC that has raised the loudest outcry has been the status of mobile broadband in rural areas. Now that Verizon is discontinuing rural subscriber accounts, the FCC will be able to see those concerns come to life.

Dear John...

The company has decided to cut service to scores of customers in 13 states because those subscribers have used so many roaming charges, Verizon says it isn’t profitable for the company. Service will end for affected subscribers after October 17th.

Verizon claims customers who use data while roaming via other providers’ networks create roaming costs that are higher than what the customers pay for services. In rural communities, often mobile wireless is the best (albeit poor) or only option for Internet access, so subscribers use their phones to go online.

Subscribers are from rural areas in Alaska, Idaho, Indiana, Iowa, Kentucky, Maine, Michigan, Missouri, Montana, North Carolina, Oklahoma, Utah, and Wisconsin.

In a letter sent to customers scheduled to be cut off, Verizon offered no option, such as paying more for more data or switching to a higher cost plan. Many of the people affected were enrolled in unlimited data plans:

“During a recent review of customer accounts, we discovered you are using a significant amount of data while roaming off the Verizon Wireless network. While we appreciate you choosing Verizon, after October 17th, 2017, we will no longer offer service for the numbers listed above since your primary place of use is outside the Verizon service area.”

Affecting Customers And Local Carriers

Apparently, Verizon’s LTE in Rural America (LRA) program, which creates partnerships with 21 other carriers, is the culprit. The agreements it has with the other carriers through the program allows Verizon subscribers to use those networks when they use roaming data, but Verizon must pay the carriers’ fees. Verizon has confirmed that they will disconnect 8,500 rural customers who already have little options for connectivity.

Philip Dampier at Stop The Cap! writes:

North Carolinians, do you feel like your state is 90 - 93 percent covered with Internet access that provides 25 Megabits per second (Mbps) download and 3 Mbps upload speeds? If you live in one of the state's many rural areas, probably not. The state is now providing an opportunity for North Carolinians to verify and comment on FCC mapping data with a new state broadband mapping tool.

Cleaning Up The Data 

The state’s Department of Information Technology released the tool in May and encourages residents and businesses to test out the accuracy of their premise data. The map uses FCC acquired from ISPs that report coverage and speeds on Form 477. The data, based on census blocks, typically overstates coverage, creating maps that are unreliable and inaccurate. North Carolina officials aim to correct that.

“We want to get better data so we can go back to the FCC and tell them your data says your census block is served, but less than 25 per cent of the people are actually getting service,” says Jeff Sural, director of the North Carolina broadband infrastructure office.

With better data, state officials hope to increase FCC funding opportunities and determine what areas are in the most dire straits regarding lack of Internet access. The tool asks users to review the data that was submitted by ISPs for their address, conduct a speed test, and confirm whether or not they have access to the connectivity that the ISPs claim they do, and if not, provide more accurate information.

Once a threshold of users have completed the test to allow the results to be displayed on the map, the North Carolina Broadband Infrastructure Office will begin sharing the results on the map.

It's A Start

The effort will help obtain a more accurate picture of what’s really going on in the Internet access trenches if residents and businesses participate, but the state needs to go further to ease its connectivity problems. In a recent State Scoop article, Christopher once again pointed out the failings caused by state restrictions that discourage investment:

S&P Global Market Intelligence - May 26, 2017

Hard Data on Municipal Broadband Networks

Written by Sarah Barry James

There is a dearth of good data around municipal broadband networks, and the data that is available raises some tough questions.

A new study from University of Pennsylvania Law School Professor Christopher Yoo and co-author Timothy Pfenninger, a law student, identified 88 municipal fiber projects across the country, 20 of which report the financial results of their broadband operations separately from the results of their electric power operations. Municipal broadband networks are owned and operated by localities, often in connection with the local utility.

...

Yet Christopher Mitchell, director of the Community Broadband Networks Initiative at the Institute for Local Self-Reliance, argued that Yoo's study did not present an entirely accurate or up-to-date picture of U.S. municipal networks.

"When I looked at the 20 communities that he studied — and his methodology for picking those is totally reasonable and he did not cherry pick them — I was not surprised at his results because many of those networks are either in very small communities … and the others were often in the early years of a buildout during a period of deep recession," Mitchell said.

As an example, Mitchell pointed to Electric Power Board's municipal broadband network in Chattanooga, Tenn. — one of the five networks Yoo identified as having positive cash flow but at such a low level that it would take more than 100 years to recover project costs.

...

In fact, without the revenue generated by the fiber-optics business, EPB estimated it would have had to raise electric rates by 7% this year.

According to Mitchell, Yoo's study captured the Chattanooga network when it was still "small and growing," but misses "what's going to happen for the rest of the life of the network, which I think is the more important part."

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Seattle is the latest local government taking steps to protect citizens’ data. As of May 24th, companies with franchise agreements allowing them to operate in the city must obtain customer permission to sell personal data or browsing histories.

The three companies operating in Seattle are Comcast, CenturyLink and Wave Broadband.

Opting In vs. Opting Out

In Seattle, the rule will require customers to opt-in to allow companies to collect and sell their data, unlike the usual situation - opting out to refrain. 

“We felt that an opt-out process was insufficient,” said Michael Mattmiller, the city’s chief technology officer. “Consumers are too busy to somehow learn through the fine print that your web usage is being mined or sold.”

To remain in compliance with the new rule, companies must submit semi-annual reports. 

State Efforts Uncertain

The state is still considering passing a similar bill but Seattle isn’t waiting for Olympia to act first. Minnesota’s privacy protection amendment was removed from the omnibus jobs bill in conference committee and faces an uncertain future; acting at the municipal level appears to be most likely to stick.

Tacoma's City Council passed a resolution in April to heighten personal data privacy on the publicly owned Click! network.

Read Seattle's new rule for Internet service providers here.

In 2004, about 90 percent of multi-tenant company-owned buildings were not connected to fiber for connectivity. In April, Vertical Systems Group revealed that in 2016 that number had dropped to 50.4 percent. The results underscore the fact that businesses understand the importance of fiber as a basic commercial amenity and strive to obtain it in their own facilities.

“Fiber footprints have been highly valued assets in nearly every merger transaction in the industry during the past two years. The density of fiber lit buildings on-net and geographic reach are significant competitive differentiators,” said Rosemary Cochran, principal at Vertical Systems Group. “For 2017, network providers report that fiber footprint expansion is the top factor that will drive Carrier Ethernet growth and support rising demand for other gigabit-speed services.”

In addition to data transport and online commerce, companies need high capacity and reliable connectivity to share files with potential partners. Depending on the type of work they do, transactions may depend on split second data delivery, which only fiber can provide.

As an increasing number of communities consider investing in fiber-optic networks, economic development is often cited is their first consideration. Without fast, affordable, reliable connectivity readily available, companies looking to relocate will move on and take jobs with them.

After elected officials in Washington, D.C., voted to allow ISPs to invade their customers’ privacy online, leaders in Minnesota took steps to protect constituents. A recent amendment in St. Paul may be setting some new rules for ISPs operating in the Land of 10,000 Lakes.

Taking Action In Minnesota

Both the state House and Senate approved omnibus bill amendments that prevent ISPs from collecting the personal data resulting from customer use of the Internet. The Senate amendment language, introduced by Ron Latz, reads like this:

No telecommunications or internet service provider that has entered into a franchise agreement, right-of-way agreement, or other contract with the state of Minnesota or a political subdivision, or that uses facilities that are subject to such agreements, even if it is not a party to the agreement, may collect personal information from a customer resulting from the customer's use of the telecommunications or internet service provider without express written approval from the customer. No such telecommunication or internet service provider shall refuse to provide its services to a customer on the grounds that the customer has not approved collection of the customer's personal information.

The body voted 66 - 1 to adopt the language into the Senate omnibus jobs bill, SF 1937. In the House, an almost identical amendment was adopted into HF 2209, their economic development omnibus bill. The Senate version added the last sentence, preventing ISPs from denying service unless a customer allows their ISP to collect data.

After the amendment was included in the bill, Sen. Latz commented that the language was, “about standing up and saying that our online privacy rights are critically important.”

Last week we shared an alert from Fight for the Future (FFTF) regarding the Senate vote on data protection. You’ve probably heard by now that the vote passed, which means the measure moved to the House. FFTF sent out a follow up with important information about that vote, that’s happening TODAY:

Congress has scheduled a vote TUESDAY to eliminate Internet privacy rules and allow ISPs to sell your data to advertisers without your permission. It already passed the Senate. This is our last chance to stop it.

Just last week, the Senate voted to gut internet privacy rules that prevent Internet Service Providers (ISPs) from selling your sensitive personal information to advertisers without your consent.

The measure passed the Senate by only two votes. It was close, and there was significant public outcry which means we still have a chance to stop it.

Now the bill moves to the House of Representatives, and we just got word that they scheduled a vote on it TUESDAY. 

They’re trying to ram it through quickly without discussion or debate. We need to stop them.

Call Congress right now. Tell them to vote NO on repealing the FCC broadband privacy rules.

[FFTF] will connect you with your lawmakers and give you a simple script of what you can say. Here’s the number: (415) 360-0555

Even creepier, they’ll be able to install software on your phone to track you, and inject undetectable “cookies” into your Internet traffic to record everything you’re doing online.


If this bill passes the House, companies like Comcast, Verizon, and AT&T will be able to constantly (and secretly) collect our online activity and sell our browsing history, financial information, and real-time location, and sell it to advertisers without our permission.


Call this number and FFTF will connect you directly to your representatives: (415) 360-0555

Our friends at Fight for the Future let us know that an important vote on privacy rules is happening today. We want to pass on the information so you know who to call to express your concern about who collects and disseminates your personal data:

Today at noon, Congress is expected to vote on whether to gut the FCC’s broadband privacy rules that prevent Internet Service Providers like Comcast and Verizon from collecting and selling your personal data without your permission.

In just a few hours Congress could roll back these landmark rules that many of us fought hard for last year.

And get this-- the 22 senators behind this controversial resolution have received more than $1.6 million from the very same companies that would profit from us losing our broadband privacy rights.

Here are the names and phone numbers of the lawmakers who we need to side with us to protect broadband privacy rights:

We can’t let this happen. Call Congress right now.

Sen. Lisa Murkowski (202) 224-6665 @lisamurkowski

Sen. Susan Collins (202) 224-2523 @SenatorCollins

Sen. Jerry Moran (202) 224-6521 @JerryMoran

Sen. Cory Gardner (202) 224-5941 @SenCoryGardner

Sen. Benjamin Sasse (202) 224-4224 @BenSasse

Sen. Dean Heller (202) 224-6244 @SenDeanHeller

If these privacy protections are removed, ISPs will be able to do the following :

Monitor and sell all your location data, search history, app usage, and browsing habits to advertisers without your permission, hijack your search results, redirecting your traffic to paying third parties, and insert ads into web pages that would otherwise not have them
.

This is going to be a close vote. We’ve included the names, numbers, and twitter handles of key members of Congress who could vote to uphold current broadband privacy rules.

Call them now. Tell them to protect our privacy. Here’s a sample script you can use:

“Hi, my name is ______, I’m calling to ask Senator _____ to vote against the CRA proposal to roll back the FCC’s broadband privacy rules. Please don’t let Internet Service Providers sell my personal information without my permission.”

This vote is happening very soon, please call or contact these key members of Congress now.