Tag: "rates"

Posted August 30, 2019 by lgonzalez

On August 29th, people in Fort Collins, Colorado, gathered together at the city’s Lincoln Center to celebrate the launch of Connexion, their municipal fiber optic network. 

Establishing Rates

Prior to the get together, the utility announced pricing and services for residential subscribers. Symmetrical gigabit Internet access will be available for $59.95 per month; residents will also have the option to sign-up for 10 gigabit speeds for $299.95 per month.

Business rates are still in the works.

Connexion is also offering bundles that include voice and video. While they’re still developing details on video service, subscribers can choose a voice and Internet access package at this early stage. The utility will not impose data caps and, as expected, there are no contracts.

Connexion has expressed their commitment to network neutrality, a policy that helped drive the local comunity to develop the municipal network.

Sweet Launch 

The event was especially glorious to folks involved in the 2017 vote to change the city’s charter. At the time, big corporate ISPs dedicated close to a million dollars toward influencing the vote to prevent the amendment. Measure 2B was on the ballot to update the city’s authority to invest in a publicly owned network. With a de facto duopoly on Internet access in Fort Collins, incumbents wanted to halt any change, but the measure succeeded and the initiative moved forward.

Learn more about how a group of grassroots organizers was able to defeat Comcast and friends in episode 282 of the Community Broadband Bits podcast. We spoke with Glen Akins and Colin Garfield, two residents that worked tirelessly to lead the initiative. 

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Posted June 19, 2019 by lgonzalez

When a renter looks for their next apartment, each weighs various amenities according to their own needs. In a recent study released by BroadbandNow, for almost 39 percent of survey respondents high-speed Internet access came in as a “must-have” feature.

Cleaning and Connecting Most Important

The survey sought opinions from almost 5,800 apartment dwellers, who ranked high-speed Internet access on par with a dishwasher, but below an in-unit laundry. Covered parking, a fitness center, and access to a pool came in well below convenient laundry and fast connectivity.

Renters who already have access to fiber connections were more likely to choose high-quality Internet access as a “must have” according to the survey. Only about 7.5 percent of those who responded to the survey connect with fiber and most rely on fixed wireless, about 35 percent. Current fiber subscribers are also the most likely to feel that their Internet access speeds are “good” or “very good” — a whopping 75 percent.

Approximately half of respondents said they would pay more for a place where they can access fiber. When considering rent, those who already have fiber, 35 present that said that they would be willing to pay an additional $50 per month in order to continue to use fiber for Internet access. About 17 percent of those who do not use a fiber connection, about 17 percent, said they would be willing to pay the extra $50 per month.

Landlords Take Note

Real estate experts have documented the benefits of fiber optic Internet access on both single-family homes and multi-dwelling units (MDUs). At the end of 2016, the FTTH Council (now the Fiber Broadband Association), created an infographic to help visualize the opportunity fiber creates for MDU landlords and building owners.

Based on research from RVA, LLC, American and Canadian renters are willing to pay $80 per month more on a $1,000 per month unit that has FTTH. Like the BroadbandNow research, RVA surveyed renters for their opinions.

FTTHMDUS.jpg

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Posted June 13, 2019 by lgonzalez

Ammon, Idaho’s open access software defined network has earned accolades from industry experts and been hailed as a model approach for other communities. It has been praised for serving the community, providing reliability, and offering affordable options. Amid news of expansion, the positive effects of competition via the publicly owned network have recently flashed across news and social media. People who don’t live in the Idaho city are shocked to learn how affordable high-quality Internet access can be. 

Growing a Good Thing

In March, City of Ammon Fiber Optics began to deploy in the city’s Bridgewater neighborhood, where they expected to connect around 300 of the potential 500 subscriber households with this particular expansion. Three more neighborhoods are lined up for expansion this summer and into the fall.

The city provides several options for residents in Ammon, including the Local Improvement District (LID) approach, to finance expansions of the infrastructure. Their method allows the community to continue to build the network without borrowing or bonding. Community members within the boundaries of the project area can sign up at the beginning of the process to pay for connecting over a 20-year period. If they decide to pass initially and connect later, they must pay the connection fee out of pocket. In 2018, the city of Ammon developed this explainer video:

If people want to pay the full connection fee all at once, they have the option to do so, but many people choose to pay through the LID. Connecting to the networks usually costs between $3,000 - $3,500. Groups of neighbors come together to create the LIDs because deploying in an area where there are multiple homes interested in connecting to the network is less expensive than a single home connection. The more property owners who opt in to connect to City of Ammon Fiber Optics, the lower the cost is to every one who wants to connect.

Keeping it Clear

To most people, connecting to the Internet means a bill from an Internet access company such as Comcast or AT&T. Subscribers who obtain Internet access from large...

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Posted November 5, 2018 by lgonzalez

We knew that Longmonters loved their publicly owned network, but recent numbers show how many of them have shunned incumbents to switch. More than half of the market in Longmont has now signed up with NextLight. While NextLight subscribers enjoy fast, affordable, reliable connectivity from their network, benefits from competition are also creating a better environment for Longmonters who have stayed with the incumbents.

When Longmont Power and Communications (LPC) set out to serve the community in 2014, their goal was to reach approximately 37 percent of the market within five years. According to LPC’s Scott Rochat, they’ve blown away that goal and have already reached 54 percent.

No Tricks, Just Gigabits

While large national providers focus their efforts to capture customers with gimmicks such as reduced introductory rates that later increase, LPC has appealed to subscribers with a series of intelligent moves that show their commitment to the community.

At the start of 2018, LPC dropped the cost of their symmetrical gigabit Internet access from $99.95 per month to $69.95 per month. If subscribers have been connected for 12 continuous months, they’re eligible for a loyalty discount which brings the price down another $10 per month. During deployment, LPC created a special program in which folks who signed up for service within three months that service was available in their areas were able to cut yet another $10 per month off their gigabit rate for as long as they stayed connected. These Charter Members are able to take that $49.95 per month rate with them when they move to a different Longmont address where NextLight is available and the rate stays at the premise that they sell.

Approximately 93 percent of NextLight residential subscribers are Charter Members, Rochat told the Times Call. The network currently serves 17,400 premises.

Subscribers who referred friends were also able to get a free month of service for each referral and they had extended the promotion to digital voice service.

Competition=Better Rates, Better Services

The...

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Posted September 14, 2018 by lgonzalez

People in Wyoming, Minnesota, gathered together on September 12th to bend the ear of officials from the state’s Public Utilities Commission (PUC). Ann Treacy from the Blandin Foundation attended the meeting and recorded most of the conversation from the 100 or so frustrated and fed-up folks. The meeting was one of five organized by the PUC after a record number of complaints by incumbent telephone and Internet access provider Frontier.

A Shared Reality

It’s safe to say that “frustration” was the star of the night, as everyone who spoke mentioned how it had consumed their experience with Internet access from Frontier. People who spoke at the meeting included those who worked from home, business owners, parents with families whose kids needed Internet access for homework, and retired folks who just wanted to enjoy a quiet evening streaming a movie.

Most of the people who spoke at the meeting said that they needed to run mobile hotspots or had given up on Frontier’s DSL service and now rely solely on hot spots to avoid the frustration of dealing with terrible service. Several people at the meeting don’t have the option of mobile hotspots because there’s no cell coverage where they live.

In addition to horribly unreliable connectivity, where the only consistency is dropped service, people expressed anger about overpaying for Internet access that was down far too often — even for weeks at a time. When they were able to get online, many people who spoke at the meeting reports horrifically slow speeds and feel they are being “ripped off” because they never reach the “up to” speed that they pay for each month. Once woman has documented her line’s performance and the fastest download speed she has reached is .96 Megabits per second (Mbps); the slowest is .05 Mbps. This same person has had limited success in cajoling Frontier to temporarily lower her bill since 2012.

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Posted September 10, 2018 by Katie Kienbaum

If you’re looking to move to a community with a relaxing, rural lifestyle and quality Internet access, then Lyndon Township in Michigan may have just jumped to the top of your list. Now that the community has chosen an ISP to serve the community via its publicly owned infrastructure and established the cost of service, they're eager to start deployment.

Lyndon Township Board recently approved rates for their forthcoming fiber network, setting the price of symmetrical 1 Gigabit per second (Gbps) Internet speeds at a reasonable $69.95 per month. This is a nice reward for the township’s residents, who last year approved a tax increase to fund the construction of the network. The affordable residential gig brings Lyndon Township into the same price range as communities such as Lafayette, Louisiana; Westfield, Massachusetts; and Longmont, Colorado.

Local Support Founds, and Funds, the Network

Though only a 20-minute drive from the University of Michigan, a world class research institution, Lyndon Township residents are mostly stuck with expensive, slow, and unreliable satellite Internet service. Around 80 percent of the community doesn’t currently have access to broadband, which the FCC defines as a minimum of 25 Megabits per second (Mbps) download speed and 3 Mbps upload speed.

When attempts to get existing Internet service providers to expand into the community failed, the township decided to build its own Fiber-to-the-Home (FTTH) network. To fund the approximately $7 million network, residents approved a millage increase in 2017, with 66 percent of voters in support. The millage amounts to a property tax increase of $2.91 per $1,000 of taxable property.

Fast Speeds, Low Rates...

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Posted August 31, 2018 by lgonzalez

Consumer Reports (CR) has once again gone straight to the source to collect opinions on subscribers’ experiences with their Internet access, telephone, and pay TV services. Unsurprisingly, a vast majority of respondents to their survey of 176,000 people expressed dissatisfaction with the large national providers. Once again, municipal network Chattanooga EPB Fiber walked away as the only Internet service provider to receive top marks for value, speed, and reliability.

This isn’t the first time the Tennessee publicly owned network appeared at or near the top of the list in a customer satisfaction survey. In addition to consistent high scores on CR surveys, EPB Fiber has also earned kudos from J. D. Power.

After Chattanooga EPB Fiber, Google Fiber was the only private sector ISP to garner a positive rating from subscribers. Google Fiber also obtained a favorable score for value.

Bigger is Better (Not!)

The most recent survey from CR also underscored what many Internet access, pay TV, and telephone subscribers keep expressing year after year — that they despise the big, corporate behemoth providers. When it comes to Internet access, smaller cable ISPs fared a little better, but only Armstrong Cable Company, serving communities in Pennsylvania, Ohio, and four other states, received an “overall satisfaction” rating.

RCN, Hawaiian Telecom, and Grande Communications also did better than the large ISPs, including Comcast, Spectrum, and Cox Communications.

Hiding Fees in the Bundles

According to a CR article on their survey and analysis of the results, approximately 75 percent of subscribers answering the survey needed to bundle TV, Internet access, and telephone to obtain what they thought was the best deal. Subscribers reported that, even though they had to continually haggle for acceptable pricing, they still felt overcharged.

One of the most prominent areas of complaint from subscribers who answered the survey, dealt with hidden fees, unexplained increased, and confusing bills....

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Posted July 31, 2018 by lgonzalez

In recent years AT&T and Verizon, the nation’s two largest telco Internet providers, have eliminated their cheaper rate tiers for low and mid-speed Internet access, except at the very slowest levels. Each company now charges essentially identical monthly prices – $63-$65 a month after first year discounts have ended – for home wireline broadband connections at almost any speed up to 100/100 Mbps fiber service.

This policy of upward “tier flattening” raises the cost of Internet access for urban and rural AT&T and Verizon customers who only have access to the oldest, slowest legacy infrastructure.

Affordability is the greatest barrier to increased home broadband subscriptions. In the United States, broadband is becoming faster for some households and more expensive for others.

This report from the National Digital Inclusion Alliance (NDIA) takes a detailed look at tier flattening from AT&T and Verizon, digging into monthly rates that users pay and the types of services they obtain from each company. The authors put the numbers side by side and show that those purchasing what used to be the most economical Internet access service are now simply paying higher rates for slow service.

Download the report to see the comparisons and the authors' analysis.

Posted February 8, 2018 by lgonzalez

In a series of decisions, Loveland, Colorado’s City Council voted earlier this week to take the next step toward developing a municipal broadband network. In addition to allocating funds to develop a business plan, city leadership established an advisory board, accepted task force recommendations, and voted to amended current code to allow the electric utility to handle communications activities.

No Public Vote

The council addressed whether or not to ask voters to approve efforts to establish a municipal broadband network, even though the issue was not part of the agenda. City staff drafted an amendment during the meeting to require a vote, but after prolonged discussion City Council members voted 5-4 against including it.

Last fall, the city of Fort Collins needed to bring the issue before voters in order to amend their charter so community leaders could move forward with a municipal network. After spending more than $900,000 through a bogus citizens group to try to stop the measure, Comcast was unable to persuade Fort Collins to defeat it. Nevertheless, most of Loveland’s council members don’t want a repeat of the expensive hassle in Fort Collins.

Councilman John Fogle said that, prior to the Fort Collins election, he supported the idea of a vote on the issue, but he feels different now. "It's not an even playing field when incumbent industries will spend $900,000 at the drop of the hat to perpetuate ... a monopoly," he said at the February 6th Council meeting.

Other council members who voiced opposition to a vote said that they’ve heard from constituents since 2015, when the city voted to opt out of the state’s restrictive SB 152. Since then, residents have contacted them to express their support to move the project forward. "I'm tired of being beaten," said Councilor Rich Ball, "...

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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...

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