Tag: "pricing"

Posted July 10, 2018 by lgonzalez

We’ve been following the community of Lafayette, Louisiana, and their LUS Fiber community network from the early days. Director of Utilities Terry Huval was one of the people responsible for bringing high-quality Internet access to the community back in 2009. Terry is about to retire so we wanted to have one more conversation with him before he pursues a life of leisure.

The last time Terry was on the show, he and Christopher discussed the possibility of an LUS Fiber expansion. That was back in March 2015 for episode 144 and the network has since spread its footprint beyond city limits. Those efforts have inspired better services from competitors in addition to bringing fiber to communities that struggled with poor Internet access.

Christopher and Terry talk a little history as Terry reflects on the reactions of incumbent ISPs who tried to disrupt the LUS Fiber deployment. A winning strategy that has always served the advancement of the network, Terry tells us, has been to focus on the unique culture of Lafayette and its people. Marketing based on local pride has always kept LUS Fiber in locals' minds. Terry discusses establishing pricing and how it relates to marketing and maintaining subscribers; in broadband, the situation is much different than with other utilities.

Terry spends some time answering a few questions on free Wi-Fi at the airport and the ways the network’s economic development benefits have kept the community’s youth in Lafayette. He also addresses how the city has dealt with state rules that apply to LUS Fiber but not to private sector ISPs and the way the city has dealt with those rules.

For more details about how the community of Lafayette developed its fiber optic network, check out our 2012 report, Broadband and the Speed of Light. You can also learn more about how to address some of the many erroneous and misleading claims about LUS Fiber and similar networks from our report Correcting Community Fiber Fallacies: Attacks on LUS Fiber.

...

Read more
Posted January 18, 2018 by lgonzalez

The FCC collects data from Internet Service Providers that reflects census blocks where they offer service to at least one premise. Currently, the Commission does not collect information about rates subscribers pay. A new report from the Berkman Klein Center dives into prices subscribers pay and also looks at trends from national companies as well as local publicly owned networks. The report, Community-Owned Fiber Networks: Value Leaders in America, supports what we’ve always found — that publicly owned networks offer the best all around value for the communities that make the investment. Download the report.

In the Abstract, authors David Talbot, Kira Hessekiel, and Danielle Kehl describe their approach:

We collected advertised prices for residential data plans offered by 40 community-owned (typically municipally owned) Internet service providers (ISPs) that offer fiber-to-the-home (FTTH) service. We then identified the least-expensive service that meets the federal definition of broadband—at least 25 Mbps download and 3 Mbps upload—and compared advertised prices to those of private competitors in the same markets. We found that most community-owned FTTH networks charged less and offered prices that were clear and unchanging, whereas private ISPs typically charged initial low promotional or “teaser” rates that later sharply rose, usually after 12 months. We were able to make comparisons in 27 communities. We found that in 23 cases, the community-owned FTTH providers’ pricing was lower when averaged over four years. (Using a three year-average changed this fraction to 22 out of 27.) In the other 13 communities, comparisons were not possible, either because the private providers’ website terms of service deterred or prohibited data collection or because no competitor offered service that qualified as broadband. We also made the incidental finding that Comcast offered different prices and terms for the same service in different regions.

The report offers frank visual comparisons of the authors’ findings. Most of the comparisons show big national providers advertising offering service in the markets, but there are a few...

Read more
Posted January 17, 2018 by christopher

Do municipal fiber networks offer lower prices than the their competitors? Yes, almost always, according to a study from Harvard's Berkman Klein Center called Community-Owned Fiber Networks: Value Leaders in America.

David Talbot, a Fellow at Harvard's Berkman Klein Center for Internet and Society, joins us for episode 289 of the Community Broadband Bits podcast to discuss the study, conclusions, and challenges. He was last on episode 162 to talk about a report they did on muni fiber in Massachusetts. 

We talk about the challenges of doing an analysis like this, the range of results, and how pricing from munis tends to not only be lower but also more transparent. 

This show is 19 minutes long and can be played on this page or via iTunes or the tool of your choice using this feed.

Read the transcript for this show here.

You can download this mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to Arne Huseby for the music. The song is Warm Duck Shuffle and is licensed under a Creative Commons Attribution (3.0) license.

Posted January 10, 2018 by lgonzalez

The FCC collects data from Internet Service Providers that reflects census blocks where they offer service to at least one premise. Currently, the Commission does not collect information about rates subscribers pay. A new report from the Berkman Klein Center dives into prices subscribers pay and also looks at trends from national companies as well as local publicly owned networks. The report, Community-Owned Fiber Networks: Value Leaders in America, supports what we’ve always found — that publicly owned networks offer the best all around value for the communities that make the investment.

Download and read the full report here.

In the Abstract, authors David Talbot, Kira Hessekiel, and Danielle Kehl describe their approach:

We collected advertised prices for residential data plans offered by 40 community-owned (typically municipally owned) Internet service providers (ISPs) that offer fiber-to-the-home (FTTH) service. We then identified the least-expensive service that meets the federal definition of broadband—at least 25 Mbps download and 3 Mbps upload—and compared advertised prices to those of private competitors in the same markets. We found that most community-owned FTTH networks charged less and offered prices that were clear and unchanging, whereas private ISPs typically charged initial low promotional or “teaser” rates that later sharply rose, usually after 12 months. We were able to make comparisons in 27 communities. We found that in 23 cases, the community-owned FTTH providers’ pricing was lower when averaged over four years. (Using a three year-average changed this fraction to 22 out of 27.) In the other 13 communities, comparisons were not possible, either because the private providers’ website terms of service deterred or prohibited data collection or because no competitor offered service that qualified as broadband. We also made the incidental finding that Comcast offered different prices and terms for the same service in different regions.

The report offers frank visual comparisons of the authors’ findings. Most of the comparisons show big national providers advertising offering service in the markets, but there are a few places where...

Read more
Posted February 1, 2016 by lgonzalez

For seniors, low-income residents, and the disabled in Saint Paul, Minnesota, a Comcast discount within the city's franchise agreement is not all it was cracked up to be. The Pioneer Press recently reported that, as eligible subscribers seek the ten percent discount guaranteed by the agreement, they are finding the devil is in the details - or lack of them.

This is a warning to those who attempt to negotiate with Comcast for better service. Comcast may make deals that it knows are unenforceable. 

"No Discount For You!"

For years, Comcast held the only franchise agreement with the city of St. Paul. In 2015, the city entered into a new agreement with the cable provider and, as in the past, the provider agreed to offer discounts for low-income and senior subscribers. Such concessions are common because a franchise agreement gives a provider easy access to a pool of subscribers.

It seems like a fair deal, but where there is a way to squirm out of a commitment, Comcast will wriggle its way out. 

Comcast is refusing to provide the discount when subscribers bundle services, which are typically offered at reduced prices. Because the contract is silent on the issue of combining discounts, the city of approximately 298,000 has decided it will not challenge Comcast's interpretation:

The company notes that the ten percent senior discount applies only to the cable portion of a customer's bill. Comcast has maintained that it is under no legal obligation to combine discounts or promotions, and that bundled services provide a steeper discount anyway.

Subscribers who want to take advantage of the discounts will have to prove their senior status and/or their low-income status. In order to do so, Comcast representatives have been requesting a copy of a driver's license or state issued i.d. 

CenturyLink Picks Up the Baton

In November, the city approved an additional franchise agreement with competitor CenturyLink. That agreement also provides that seniors, low-income households, and disabled residents are eligible to receive a ten percent discount. CenturyLink can, in the alternative, offer a discount of $5 off a subscriber's cable bill if a subscriber applies for the low-income discount. In order to receive this discount, the...

Read more
Posted October 5, 2015 by lgonzalez

Owensboro Municipal Utilities (OMU) is now expanding its Fibernet services with a pilot FTTH program to connect residents this fall. There are approximately 500 homes in the selected area where OMU will test out the new venture. People living in the project area can sign-up online.

Businesses in Owensboro have had access to OMUFibernet for data transport since 1999 and in 2014 the utility added VoIP to its commercial product line. The pilot will offer gigabit Internet access to residents, but OMUFibernet has only advertised speeds up to 100 Mbps to business customers thus far, according to the OMU website. Businesses are also able to lease dark fiber, which allows them to have more flexibility with data transport speeds.

The city, home to approximately 58,000 people, is the county seat of Daviess County and sits on the south side of the Ohio River. The entire metropolitan population is over 116,000 people. OMU has offered electric and water service since 1900 and describes itself as the largest municipal electric and water system in the state.

OMU plans to offer three tiers for symmetrical Internet access in the city's Town & Country neighborhood. Gigabit service will be priced at $99.99 per month, 100 Mbps at $69.99 per month, and 50 Mbps at $49.99 per month. All subscriptions will require a $49.99 installation fee. 

Posted April 8, 2015 by lgonzalez

Longmont's NextLight municipal broadband service is surpassing projected take rates, reports the Longmont Compass. The business plan called for 34 percent but as LPC builds out the FTTH network, the first phase of the project has achieved 45 percent.

In response to the positive response, LPC will speed up completion of the project. From the Compass:

“Our schedule was already aggressive, but we’ve heard repeatedly that our community is eager to receive high-quality, high-speed broadband,” LPC general manager Tom Roiniotis said. “So we’re accelerating the deployment.”

LPC now plans to “close the circle” from two directions at once as it completes its citywide buildout, rather than move around Longmont in one counterclockwise sweep. That means the final phase of the build is now scheduled to start in the first quarter of 2016 instead of the first quarter of 2017.

As we reported last fall, gigabit symmetrical service for $50 is available for customers who sign up within three months of service availability in their area. That rate follows customers who move within Longmont and transferable to to the next home owner.

Posted April 2, 2015 by lgonzalez

Farmers Telecommunications Cooperative (FTC) is now bringing gigabit service to its Alabama members. According to the Online Reporter, FTC is the largest member-owned cooperative in the state and offers symmetrical service to businesses and residents in two counties.

The cooperative began in 1952 when telephone companies of the time did not want to invest in the rural area of the state due to low expected returns. Years earlier, the community had organized its own electric cooperative and reproduced its success to bring telephone service to residents. The area, referred to as Sand Mountain, is a natural plateau at the southern tip of the Appalachian Mountain chain.

WHNT 19 News attended a lighting ceremony in Geraldine where the FTC CEO said that the cooperative has covered approximately 84 percent of its membership area. The fiber network runs between Chattanooga and Huntsville, consisting of approximately 2,770 miles of fiber.

“We’ve now covered about 84 percent of our traditional membership on Sand Mountain between the Tennessee River and the Georgia/Tennessee lines,” said Fred Johnson, CEO of Farmers Telecommunications Cooperative. “We’ve also been able to extend that network to communities of interest such as Fort Payne, Collinsville, Valley Head, Section, Dutton, and other areas in DeKalb and Jackson County that are part of our competitive area but not traditional area.  They now all have access to that fiber broadband network.”

“Geraldine, and every other municipality in DeKalb and Jackson County that we touch can say they’re a gig city just like the rest,” Johnson says.

FTC pricing for stand alone symmetrical  broadband is an affordable $67.50 for 100 Mbps and $88 for gigabit service. The cooperative also offers triple play and other bundling options.

WHNT 19's coverage:

Subscribe to pricing