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Verizon Plans to Abandon Copper Wires In Islands Damaged by Sandy

Victims of Sandy are still recovering from the killer storm that ripped through the east coast last year. Two places hardest hit by the "Frankenstorm" were Fire Island, New York and the Barrier Island in New Jersey. In addition to homes and property, residents lost phone and Internet communications when telephone wires went down. They are still waiting to be reconnected.

Our readers know about the huge fight that has embroiled consumer advocates and the leading telephone providers in the past few years. AT&T and Verizon seek deregulation to escape the "carrier of last resort" obligation that requires maintenance of traditional copper lines for telephone service. AT&T and Verizon want to shed that responsibility in favor of wireless service that is less expensive to maintain, even though it does not support the range of uses today's copper networks do. 

Verizon is the incumbent telephone provider in Fire Island and Barrier Island but decided it will not repair damaged lines. It wants to instead deploy its inferior Voice Link wireless service on the island.

The Voice Link technology basically attaches to your house and uses Verizon's cellular network to connect the telephones in your home. Homeowners can continue to use their home phones, but the quality tends to be worse than on a proper wired telephone network. 

Under federal law,  telephone providers are obligated to replace or repair downed copper lines unless they substitute with a "line improvement," such as fiber-optic lines. Voice Link cannot be described as a "line improvement" - the only benefit it provides is that it costs Verizon less to build and maintain. 

Public Knowledge Logo

Jodie Griffin from Public Knowledge recently pointed out some of the many shortcomings of Voice Link, as revealed on Verizon's own Terms of Service. The people most harmed by this scaled back service include the people who, in one way or another, are most vulnerable. Harold Feld, also from Public Knowledge, addressed what he sees as the most critical changes and who those changes most affect:

1. Voice Link will not allow you to receive collect calls, use calling card minutes or other forms of cheap long-distance provider, and requires you to have a separate international plan to make international calls.

Who gets hurt most. Immigrant communities, anyone with a loved one incarcerated or who otherwise needs to make a collect call. Since Voice Link also does not support any data plan, anyone who used to subscribe to VZ DSL and depended on Skype or other VOIP product is equally out of luck. Again, given the tremendous use of Skype by immigrant communities to call relatives back in their country of origin, this hits them particularly hard.

 2. Voice Link will  not work with life alert systems or security alarm systems.

Who gets hurt. The elderly trying to maintain independence. Anyone with a burglar alarm or fire alarm system that does not have independent wireless connections.

 3. Voice Link will not work with DVRs or Fax machines.

Who gets hurt. Any consumer that owned this kind of equipment and stuck with Verizon because they wanted to keep using it.

 4. Voice Link will not work with credit card machines or other electronic payment processing.

Who gets hurt. Small businesses, especially when combined with losing their fax service to take orders by fax.

 5. 9-1-1 calls may fail due to congestion on network or for other reasons, including Verizon negligence in routing the call.

Who gets hurt.  Well, any of those elderly whose Life Alert no longer works, for a start.

Voice Link also cannot be used for Internet access, which whittles down an already short list of providers. 

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Verizon appeared to be circumventing the process until a June 7th request to the FCC. The telecom giant received permission from the New York Public Service Commission (NYPSC), and immediately began nurturing a plan to follow suit in other locations. Harold Feld, from Public Knowledge, wrote about Verizon's long term plans on his Tales of the Sausage Factory blog:

Since the NYPSC gave Verizon permission to deploy Voice Link instead of copper on Fire Island (at least on an interim basis), Verizon has moved full speed ahead to deploy Voice Link in other areas where Sandy destroyed the infrastructure, and is gearing up to deploy Voice Link in Florida to replace copper with Voice Link in something called “Project Thunder,” no doubt in anticipation of the active hurricane season predicted by the National Weather Service at NOAA.

Verizon's action is shifting U.S. communications policy without moving through the proper (however flawed) channels of the FCC, shifting the balance away from the public interest. If the FCC allows Verizon to move forward unilaterally, AT&T will certainly follow suit. In a later post, Feld wrote:

In some ways, this is a little thing impacting only a few communities. In other ways, it is a very big deal. If there is a single moment to point to and say “This is it! This is The Day We Started To Shut Down The Phone Network,” that day is today. With this little routine barely noticed filing for an administrative procedure that impacts a handful of communities.

While the FCC will ask for public comment on Verizon's application, we should contact them now to express our concern about this situation. The public deserves a policy and a process for replacement of old copper lines. That policy needs to include improved service - not a more limited communications mechanism - and needs to be in place now rather than during natural disaster recovery.

Smart Conduit Policy in Sandy, Mount Vernon Reduces Network Cost

More communities now embrace "dig once" policies to facilitate installation of future and current networks. The idea is to be mindful of trenching for transportation and utility projects and encourage collaboration between agencies. However, this is implemented in a variety of ways, some more effectively than others. By establishing requirements for conduit installation in development codes, communities can save big dollars if they build or expand a network in the future.

Communities such as Sandy, Oregon, and Mount Vernon, Washington, have instituted such policies. Both communities require private developers to install conduit when disturbing existing roads or building roads for new subdivision construction. Conduit itself is inexpensive and the digging is already done, so the added burden is light.

Both of these communities have plans, including maps, that allow them to be strategic in where they require conduit to be placed. They are not simply adding conduit blindly, though that policy may be better than doing nothing at all (experts are divided on the matter).

In Sandy, the code change (see Sec. 17.84.60) was a simple expansion of existing policy. The city added "broadband (fiber)" to the list of public facilities, such as public water, sanitary sewer, and storm drainage. Underground communication lines join a list of other required improvements that are to be installed in new developments at no expense to the city. Other items on that list include drainage facilities, mailbox delivery units, street lights and a underground power lines. (see Sec. 17.100.300).

Anticipated connectivity raises the value of new homes and makes them more attractive to today's buyers. Scott Lazenby, City Manager in Sandy, spoke to us for a recent podcast and told us how a developer in the area is excited about the potential. SandyNet plans to offer 100 Mbps Gbps residential service via the new conduit at an incredibly low $40 per month; the developer sees that as a major selling point.

Sandy Logo

In Mount Vernon, Washington, the community added conduit placement requirements in 1999 to help with the build of its open access telecommunications network. The code reads:

12.20.015 Construction standards for the regulation of use of public rights-of-way and public property.

All developments shall be required to construct and install telecommunications conduit on all streets that are affected, disturbed, constructed and/or improved by development unless otherwise approved, pending a review by the city engineer. This conduit shall be for the purpose of installing telecommunications cable, fiber optic wiring or other infrastructure as necessary.

This conduit shall be placed at horizontal and vertical locations as determined by the city engineer. The conduit shall conform to the size, shape and characteristics as determined by the city engineer based on industry standards. Once installed and accepted by the city, the conduit shall become the property of the city of Mount Vernon.

Development as defined in this section shall mean the construction of improvements such as buildings, homes, subdivisions, streets, and utilities. (Ord. 2927, 1999).

Kim Kleppe, Information Systems Director, notes that the policy has helped immensely in locations where aerial installation was not possible. Kleppe says the city has relaxed the requirement in recent years for residential builds because community leaders are now focused on commercial and government growth for the open access network. We interviewed Kleppe in episode #38 of the Broadband Bits podcast.

Even if a community does not ultimately build its own network, the underground pathways will be in place for leasing should a private provider choose to build. Local communities need to take advantage of any tool that can facilitate possible expansion of their telecommunications utility, whether that utility exists today or is still just an idea.

War for the Web Documentary Halfway Through Production

War for the Web is halfway through production and just launched a new trailer featuring some of the interviews they have already captured:

They have launched an indiegogo campaign to raise the necessary funds to finish it and are looking for support!

"Level Playing Field" Padded With Public Dollars to Private Providers

Municipal broadband networks have been gaining traction across the country. It's easy to see why: In many rural and low-income communities, privately offered broadband services are nonexistent. In its 2012 Broadband Progress Report the Federal Communications Commission counted nearly 20 million Americans (the vast majority living in rural areas) beyond the reach of broadband.

The Free Press' Timothy Karr's words are supported by the growing number of pins on our Community Network Map. We connect with places nearly every day where municipal networks fill the cavernous gaps left by the massive corporations. Large cable and telecom providers do not hide their aversion to servicing rural areas, yet year after year their lobbying dollars persuade state politicians to introduce bills to stop the development of municipal networks. Karr reviewed recent efforts to use state laws to stifle community owned networks in a Huffington Post article.

As readers will recall, this year's front lines were in Atlanta, where HB 282 failed. We hope that loss may indicate a turning point in advancing municipal network barriers because the bill lost on a 94-70 vote with bipartisan opposition. If it had succeeded, Georgia would have been number 20 on a list of states that, thanks to ALEC and big corporate sponsors like AT&T, Comcast, Verizon, and Time Warner Cable, have decided to leave their citizenry begging for the private market to come their way.

Time and again, the supporting argument goes like this:

"A vote 'yes' for this bill means that you support free markets and free enterprise," [Rep Hamilton, the Chief Author of HB 282] said [on the House Floor].

A 'no' vote means that you want more federal dollars to prop up cities, Hamilton said.

But Karr points out that some policy makers are starting to question that argument, with good reason. From his article:

"They talk about [the companies] as if they are totally free market and free enterprise, but doesn't AT&T get some tax breaks?" [Rep. Debbie Buckner] asked. "Didn't Windstream get some stimulus money? Isn't that government money?"

Indeed, phone and cable companies have been on federal welfare since their inception. A 2011 Institute on Taxation and Economic Policy study shows AT&T and Verizon receiving more than $26 billion in tax subsidies from 2008 through 2010. The FCC's 2012 report on Universal Service Fund subsidies shows nearly $3 billion in federal payments to AT&T, Verizon and Windstream.

In 2010, Windstream, Corp. -- a telecommunications company with services across the South -- applied for $238 million in federal stimulus grants to improve its service in 16 states. More than 16 million taxpayer dollars went to upgrade the company's services in Georgia.

So, while AT&T, Verizon, and Windstream continue to work with legislators and lobbyists who advance bills that maintain an environment rife with corporate welfare, rural Americans get nothing for their contributions. As the word spreads and more people learn about the benefits of community networks, we anticipate more people will recognize their value. In addition to saving public dollars, increasing connectivity, and spurring economic development, local networks are accountable to the communities they serve, unlike the big corporate ISPs, who are accountable to shareholders.

"The private companies have not been there for us," said Rep. Buckner, who represents rural parts of Talbot and Meriwether Counties. "And if they say they're going to come and be there for us, we don't know how long it will take them to find us."

Kentuckians Once Again Fighting to Keep Landlines

Last year, we reported on the failed SB 135, which would have eliminated the "carrier of last resort" requirement in the state. The bill, sponsored by Republican Senator Paul Hornback would have let AT&T decide who could receive basic telephone service and would have limited consumer protections.

Last year's bill did not become law, but a progeny, SB 88, has already passed in the Kentucky Senate and was received in the House on February 15th. (We'd like to report what committee will hear it first but the Kentucky Legislative web has not yet published that information.) Senator Hornback is again the chief author of the bill, crafted by AT&T and its ALEC pals.

The Kentucky Resources Council (KRC) provides an analysis of SB 88 and a prognosis on how it would affect Kentuckians. KRC must be feeling deja vu, as are many organizations looking out for rural dwellers who depend on their landlines. These bills continue to be introduced year after year as large telecommunications companies spend millions of lobbying dollars, also year after year.

WMMT, Mountain Community Radio in Whitesburg, Kentucky, recently reported on the legislation. Sylvia Ryerson spoke with Tom Fitzgerald from KRC, who discussed the analysis. From KRC's report on the legislation:

At potential risk is the opportunity for existing and new customers, to obtain stand-along basic telephone services from the incumbent telephone utility, or “Plain Old Telephone Service (POTS)” as it is called. Those most adversely affected by this loss of access to basic, stand-alone, telephone service are those least able to obtain affordable and reliable alternatives – those who live in rural, lower density areas, and the poor in dense, urbanized areas who have no affordable alternative priced as low as POTS.

Kentucky Resources Council

The main concerns with the bill include:

Removal of power from the Public Service Commission to hear and resolve complaints about local exchange service. This would affect voice service, operator assistance, directory assistance, and accurate 911 assistance. Restoring lost service is often a waiting game for rural customers served by AT&T. With no where to go, customers can lose their connection to family and the outside world for even longer periods. As with many other provisions of this bill, the elderly are the biggest casualty. Healthcare matters are  often handled over the phone, including my dad's pacemaker monitoring.

In areas where there are more than 5,000 households, offering basic stand-alone service would be at the provider's discretion. Service could be terminated without prior regulatory approval if there are any other voice services offered to the customer, even if that service was from an affiliate. This lack of competition would likely lead to cost increases for people who cannot afford them. Another scenario would be the company's requirement for customers to bundle services, forcing those least able to afford it to purchase services they do not need or want just to get telephone service.

In communities where there are fewer than 5,000 households, the current providers (AT&T, Windstream, or Cincinnati Bell) could cease to offer stand alone landline service of there was available voice wireless service, even if that service was less effective for 911 purposes. Again, the "forced bundle" would be an issue.

They could also petition to be relieved of the obligation to provide basic telephone service if they meet certain criteria regarding the availability of voice services from other providers in the area. For example, if there is a broadband provider "capable" of providing voice services (contrasted with one that actually "does provide" voice services) the provider could be relieved of the obligation. Again, that "capable" provider does not have to offer the service as a stand alone, but may require bundling.

Providers can use any technology they wish if they decide to continue the "provider of last resort" obligation, which will make that obligation completely deregulated. This tactic is the backbone of the private sector's efforts to deregulate. For more on this strategy, we encourage you to listen to our conversation with Harold Feld on the 23rd episode of the Broadband Bits Podcast.

Telephone

For more detail on the bill, and all its shortcomings, take a few moments to review the detailed analysis by KRC. The full text of the bill, its amendments, and the status, are available on the Kentucky General Assembly website.

So what could be gained for Kentuckians by passage of such a bill?

From a Courier-Journal report by Joseph Gerth:

Proponents of Senate Bill 88 say the bill would allow companies like AT&T, Cincinnati Bell and Windstream to sink more money into expanding wireless broadband communications rather than costly old, outmoded land lines.

History shows us, however, that promises made by regulated companies today often end up as foggy memories tomorrow. We have seen time and time again how dergulation given in exchange for promises results in a breach of the social contract. This is known as Kushnick's Law:

"A regulated company will always renege on promises to provide public benefits tomorrow in exchange for regulatory and financial benefits today."

Rather than wait to be taken advantage of again, we encourge you to call the toll-free legislative message line 1-800-372-7181 and leave a message that will be delivered to all legislators. This is especially critical if you live in Kentucky, but legislation like this will march across all states if it passes here or elsewhere. 

New to Internet Policy? Listen to Vint Cerf

This is a good resource for those still trying to wrap their heads around Internet policy. Vint Cerf of Decoding DC.

Susan Crawford and Bill Moyers Discuss Internet Access in America

Susan Crawford sat down with Bill Moyers to talk about Internet access in America. The two touch on net neutrality, the digital divide, and how access is now a critical component to our economic development.

In the words of Bill Moyers, "This is pretty strong stuff." Bill and Susan also talk about how we have come to this point through lack of competition advanced by telecommunications companies' lobbying and legislative ennui.

They spend some time looking at Lafayette, Louisiana, one of the cities that we covered in our 2012 case study, Broadband At the Speed of Light: How Three Communities Built Next-Generation Networks.  The two also dig into ways policy change can improve access and efforts we can all make to heighten awareness of the issue. This is a great dicussion for any one, regardless of their place on the Internet access learning curve.

Video: 

Hey FCC: Time to Expand Unlicensed Spectrum!

Remember that Washington Post story about bigger, free Wi-Fi networks? It went hugely viral with all manner of outlets picking the story up, unintentionally distorting it, and amplifying it.

Some good has come of it. For one thing, I was reminded that Ars Technica does a really good job of tech reporting, better than anyone else in my estimation. Cecilia Kang offered a follow-up story to clarify the original that should help more people to understand what is at stake.

But more importantly, we saw a lot of media coverage about something really important, whether we allocate future spectrum for everyone to use (much like Wi-Fi) or will we reserve it just for AT&T, Verizon, or another big corporation?

Harold Feld has a strong opinion on the matter:

This past week, we’ve had quite the discussion around Cecilia Kang’s WashPo piece describing a plan by the FCC to create a national WiFi network by making the right decisions about how to allocate spectrum between licenses for auction and what to leave available for the unlicensed TV white spaces (“TVWS” aka “Super WiFi” aka “Wifi on steroids”). As Kang describes, the FCC’s opening of sufficient spectrum for TVWS could lead to “super WiFi networks (emphasis added) around the nation so powerful and broad in reach that consumers could use them to make calls or surf the Internet without paying a cellphone bill every month.”

Needless to say, the article faced much pushback, despite a subsequent Washpo clarification to indicate the FCC was not, actually, planing to build a network. Amidst the various critics, there were some general defenders of the concept. My colleagues at EFF noted that increasing the availability of open spectrum for WiFi-type uses , and my friends at Free Press argued that such a free public wifi network (or, more accurately, series of networks) is in fact possible if the FCC makes enough good quality spectrum, suitable for broadband and usable out doors, available on an unlicensed basis.

I will now go a step further than any of my colleagues. I will boldly state that, if the FCC produces a solid 20 MHz of contiguous empty space for TV White spaces in the Incentive Auction proceeding, or even two 10 MHz guard channels that could nationally produce two decent sized LTE-for unlicensed channels, then we will have exactly the kind of free publicly available wifi Kang describes in her article. Or, “Yes Cecilia, there really is free national public wifi. Don’t let the haters and know-it-alls tell you otherwise.” ...

MAG-Net Logo

I wrote a much shorter, far less impressive piece for the Media Action Grassroots Network that embraces a similar argument:

You know how you can buy a simple little device for as little as $30 now to set up your own Wi-Fi network that creates an easy in-home network? Imagine if your neighborhood could do that too!

Wi-Fi works in your home because the federal government, which manages how the public airwaves are divided for various uses, decreed that a small slice of spectrum would be unlicensed - sitting there for anyone to use however they wanted. But that spectrum is not suited for a neighborhood-wide network. ...

And we have seen others take notice as well, including the Baltimore Sun Editorial Staff:

The companies who oppose the FCC's plan argue that the agency's mission to serve the public interest would best be achieved through the revenues from an auction of the airwaves. The last such auction, in 2008, generated nearly $20 billion for the government. That's a substantial amount of money, to be sure, but the relatively small portion of the spectrum that the commission now proposes to leave open to unlicensed use would be worth only a fraction of that — a pittance compared to the economic activity that could be generated through the creation of new products and services to take advantage of the unlicensed spectrum.

FCC Logo

Therein lies the danger. The big wireless lobbyists are pushing Congress and the FCC hard to ensure that they get the licenses. Republicans in particular are arguing that we need the billions (perhaps 3-5?) of dollars that an auction would fetch for the treasury. This would be a terrible tradeoff.

I doubt that anyone has a handle on the value of Wi-Fi, but it is orders of magnitude higher than a onetime infusion of a few billion dollars. How much would you pay any given day to use Wi-Fi? Multiply that by over 200 million people. And this new spectrum could allow bigger networks than Wi-Fi supports -- an even greater potential value!

Verizon and AT&T know this, of course. They will gladly spend billions to ensure that we are stuck paying far more for services from them than we can build for ourselves if only we are allowed to use our spectrum to do so.

Write your elected representatives to support increased unlicensed spectrum.

The Five Fundamentals for Future Telecommunications - Community Broadband Bits Podcast #32

Harold Feld, Senior Vice President of Public Knowledge, is back on Community Broadband Bits to discuss five fundamental rules necessary to ensure we have a great telecommunications system that benefits everyone. Harold first appeared on our show in episode 23.

Harold explains the Five Fundamentals here and includes a link to their full filing [pdf].

In short, the fundamentals are: Service to all Americans, Interconnection and Competition; Consumer Protection; Network Reliability; and Public Safety. The comments also include some thoughtful words about the balance between federal, state, and local governments in ensuring these five fundamentals.

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 25 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.

Thanks to mojo monkeys for the music, licensed using Creative Commons.

Lack of Competition Creates Capped Connections

This post comes to us from Patrick Lucey of the Open Technology Institute at the New America Foundation. The post was originally published there, but we are excited to feature it here as well.

Last month my colleagues and I at the the Open Technology Institute released a paper titled “Capping the Nation’s Broadband Future?” The paper examines data caps, an increasingly common practice where internet service providers charge individuals a fee if they exceed a monthly threshold on the data they use. The paper discusses how data caps are not a solution to network congestion concerns, nor a reflection of increased costs due to more people being online. A review of public financial documents for Comcast shows their broadband network operating are decreasing. Other costs, like bandwidth transit, are decreasing as well. Instead, data caps are a reflection of a lack of competition in both the home and wireless broadband market. 

As if to hammer home the larger point about a lack of competition, a few days after releasing the paper I received the following flyer in my mailbox. It is a promo piece from a joint marketing agreement between Comcast and Verizon Wireless where they promote each others’ services. Signing up for Verizon Wireless service will give me a discount on my home Comcast subscription. 

Although this agreement was approved by the FCC and Department of Justice, this kind of chummy behavior between supposedly rival companies is hardly a sign of aggressive competition. Verizon FiOS is often cited as the main competitor to incumbent cable companies, even though Verizon officials have stated the company is not expanding FiOS to new markets.  

At a recent public event, Vint Cerf, recognized as one of the creators of the internet, stated that since the days of dial-up service competition among broadband providers has “evaporated.”  Perhaps most telling for the American broadband market are recent developments in China, where new buildings are required to be wired with fiber optics if there is a larger fiber network in the area. The article touts how individuals will have their choice of internet providers. By adopting open access policies such as these on a large scale, customers in China -- a country that has embraced capitalism but is still nominally communist -- could end up enjoying greater free market competition than customers in the U.S. 

The lack of broadband competition in the U.S. has led more and more telecom policy leaders to worry that instead of competing and building state-of-the-art networks, internet service providers are increasingly focused on “harvesting” higher revenues from their customer base. Indeed, recent trends seem to confirm these fears, as providers have begun implementing data cap overage charges, introducing new modem rental fees, and entering into joint marketing agreements. 

It is important to have a discussion around data caps and what they mean for online innovation, commerce and consumer behavior. However, data caps are merely the manifestation of a larger problem: the lack of robust competition among U.S. internet providers. New entrants like Google Fiber in Kansas City or municipally-owned networks in other cities are offering faster broadband speeds and typically without data caps. Policymakers in Washington must focus on ways to encourage these local examples of innovation on a larger national basis in the broadband market.