Tag: "prices"

Posted July 12, 2013 by Lisa Gonzalez

The FCC does not have a good sense of what is happening outside DC in terms of broadband availability and data. This has been a conscious choice - it has refused calls (even those made by the FCC itself) to collect useful data that would lead to data-driven policies to encourage the investment we need.

Not only has the FCC refused to collect data, it refuses to take action as companies like Time Warner Cable refuse to tell potential subscribers what the cost of service is. We have first hand experience along these lines - our goal was to document actual consumers prices for Internet access beyond promotional pricing. When we asked Time Warner Cable sales reps for prices after introductory deals expire, they would not quote a price. They would not give an estimate or provide any examples. 

If you are looking for evidence of a failed market, we submit that when a seller can refuse to quote the price that one will pay in 7 months for the service, or even ballpark it, with impunity, the market is busted. Time Warner Cable isn't worried about driving customers away - it many areas of the country it is only real option for not too slow Internet access. So it does as it pleases.

We also contacted the FCC and asked staff where we could find information on the actual prices of broadband. The person on the other end sounded defeated as her voice dropped. "Oh, we don't collect that," she said, "We don't know any one who does. Have you tried calling the providers?"

Call us old fashioned, but we think it's crazy. Even though Time Warner Cable, AT&T, Verizon, CenturyLink, etc. are some of the largest corporations in our country, affecting the household finances of tens of millions of Americans, their prices for connectivity are masked in a Cloak of Invisibility with the tacit approval of the regulatory body charged with protecting the public.

The Free Press documents a recent missed opportunity to rectify past decisions that have led to a data black hole:

On Thursday, the Federal Communications Commission approved changes to its broadband data-collection practices in an order continuing the mapping efforts begun by the National Telecommunications Information Administration. The FCC, however, declined to adopt its own prior proposal...

Read more
Posted May 13, 2013 by Lisa Gonzalez

In January, Longmont Power and Communications (LPC) announced they would begin connecting businesses located within 500 feet of the existing network. As we reported, local businesses were chomping at the bit to get hooked up and enjoy the high-speed next generation network. Even without efforts at marketing or advertising, more businesses have added themselves to the queue. LPC will present the formal business plan for expanding the network to the City Council on May 14th. Tony Kindelspire recently reported on the race to get on LPC's network in the Longmont Times-Call:

"We are bringing to council a business plan to build out all of Longmont," [Vince] Jordan, [Broadband Services Manager], said. "It's the whole enchilada."

The fact that there has so far been only limited rollout is due to economics. Currently, the installations are being paid for from a reserve fund that Longmont Power has built up over the years leasing portions of its fiber-optic loop to entities such as Longmont United Hospital and a third-party provider that services the school district. Those leases bring in about $250,000 annually, Jordan said.

For 2013, the Longmont City Council authorized LPC to use $375,000 of that reserve fund to begin connecting businesses and residents to the loop.

This model works, but does not connect everyone fast enough for their liking:

To expedite the build-out, extra up-front dollars will have to be allocated, but where those dollars will come from is yet to be determined, Jordan said, adding that ultimately, the decision will lie with City Council.

Map of Longmont Fiber Rings

Right now, Longmont will cover the initial cost of connecting subscribers except in cases of extraordinarily high cost cases. If it would cost $10,000 to install but the payback to the utility in 2.5 years is only $6,000, a customer would have to cover the $4,000 difference presently. While there are over 1,300 businesses with in 500 feet of the network, connection...

Read more
Posted April 25, 2013 by Lisa Gonzalez

Ottawa, located in east central Kansas, recently launched its own municipal fiber network. The community of 13,000 in Franklin County watched nearby Chanute build and establish its own broadband utility. Ottawa plans a similar incremental strategy. Both communities boast strong farming traditions and host industrial employers that could not get what they needed from the existing providers.

I spoke with Chuck Bigham, IT Director for the City of Ottawa, who gave me some nuts and bolts on the network. I also touched base with City Manager Richard U. Nienstedt, both are heavily involved in the establishment of the network.

Like in Chanute, local leaders have long nourished a vision for better connectivity. In recent years, they realized the vision was not only attainable, but necessary for the community to thrive.

Approximately seventeen miles of fiber, installed by USD 290 and Franklin County in the 1990s, was already in the ground when the project began. Students and staff connected to the Internet and linked the 8-10 school district facilities via its fiber network. These pre-existing resources became the backbone of Ottawa's new utility. Cooperation between the City Municipal Utility, USD 290, and Franklin County facilitated the configuration of the new network. Ottawa now provides business Internet access, expanded educational opportunities, and a higher level of service than was previously available.

Two years ago, the City and its Chamber of Commerce reached out to major businesses to determine the need for broadband. They found businesses in Ottawa were connected through existing providers, but were unhappy with price and level of service. The community's industrial park seemed especially disadvantaged. Businesses needed better upload speeds than the existing T1s, which ran up to $600 per month. While DS3 connections were available, they were unaffordable and there was no level of service between the two options. Businesses could not convince AT&T to offer something they could afford and, as Bigham noted, the telecom giant appeared to be "milking the cow."

Map of Ottawa, Kansas

This is a common complaint among communities - the big national...

Read more
Posted April 3, 2013 by Lisa Gonzalez

Spencer Municipal Utilities (SMU) of Spencer, Iowa, will be replacing old copper cable with fiber this summer. According to the Daily Reporter, customers can expect the upgrade with no increase in rates. From the article:

"Just like internet service has evolved from dial up to DSL and cable modem, fiber will give customers the next level of service to continue to improve the way they live, work and play here in Spencer," Amanda Gloyd, SMU marketing and community relations manager," said.

"We want to keep our customers on the cutting edge," she said.

Plans are to upgrade around 700 customers in one section of town during this first phase at a cost of around $2 million.

"This project is all paid for with cash in the bank," [General Manager Steve] Pick said. "This is an investment in the system."

SMU has offered telecommunications services to customers since 2000 and supplies water, electric, cable tv, Internet, telephone, and wireless service in the town of about 11,000. Rates for Internet range from $20 to $225 per month with cable tv analog Basic service as low as $14 and Basic Plus at $46. As options are added, monthly fees increase.

We see regular upgrades in service with little or no increase in price from many municipal networks. Comparatively, increases in price with little or no increase in service is a typical business decision from the private sector. Unlike AT&T, CenturyLink, or Time Warner Cable, municipal networks like SMU consider customers to be shareholders, and do what is best for the community at large.

We spoke with Curtis Dean of the Iowa Association of Municipal Utilities for episode 13 of the Community Broadband Bits podcast. He told us about the tradition in Iowa for self-reliance and its manifestation in the telecommunications industry.

Curtis also told us about Hansen's Clothing, a century-old men's clothier in Spencer. This community staple was on the edge of closing its doors until broadband came to town. Hansen's was able to begin selling high quality clothing online, offering pieces...

Read more
Posted February 26, 2013 by Christopher Mitchell

Morristown, Tennessee, is one of very few communities where anyone in town can immediately get a gigabit delivered to their home and business. General Manager and CEO Jody Wigington of the municipal electric utility, Morristown Utility Systems, joins me to discuss why they built their network and how it is has benefited the community.

The network has also attracted businesses that otherwise might not consider the community for an investment. Competing providers have kept their prices lower than they do in communities with less competition, a tremendous benefit. MUS Fiber keeps more than $3 million in the community each year. Just think of that -- distributing $3 million among the residents of a community each year. That is real money that helps boost the local businesses.

We also talk about the origin of the system, how it has benefited the electric utility, and advice for other communities that are considering their own network investments. Read our additional coverage of MUS Fiber.

Read the transcript from this conversation 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 22 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 D. Charles Speer & the Helix for the music, licensed using Creative Commons.

Posted January 4, 2012 by Christopher Mitchell

The following news report suggests that some in Knoxville, Tennessee, are starting to get a little jealous of the incredible FTTH network built by Chattanooga's publicly owned electric company. A number of Knoxville businesses are finding it more convenient to expand and add jobs in Chattanooga, where access to the Internet is faster and more affordable due to public investments.

The text version of the above video is available here.

Knoxville is located 100 miles northeast of Chattanooga. And 100 miles to the northeast of Knoxville is Bristol, Virginia, which has also been seeing significant job gains as a result of its publicly owned fiber-optic network that stretches into most of southwestern Virginia. In short, Knoxville should start worrying about its future and broadband competitiveness.

Map of Chattanooga and Knoxville

The Chattanooga ...

Read more

Pages

Subscribe to prices