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Tennessee Bill to Encourage Economic Development Killed by Telco Lobbyists

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As we continue to report on depressing campaigns to deny people fast, affordable, and reliable access to the Internet (as Time Warner Cable is doing in North Carolina), we are also making an attempt to highlight good legislation (as we recently did in Washington state). In that spirit, we turn to HB 2076 / SB 1847 in Tennessee From the bill summary:
This bill urges all municipalities to endeavor to utilize advanced broadband systems in their operations and to encourage the construction of advanced broadband systems.
The full bill is available here [pdf] but the most interesting part is what was not included. As reported by Andy Sher of the Times Free Press, the bill was intended to go much further.
The bill would have let the municipal utilities extend service up to 30 miles outside their service areas.
Unfortunately, the powerful incumbent lobbying machine (including AT&T, Comcast, and others who already hate having to compete with technologically superior networks in several Tennessee communities) killed the bill, a blow to the future of economic development in the state. Neighbors of Chattanooga, including Bradley County, desperately want access to the impressive 1Gbps network Chattanooga built -- the most advanced citywide network in the country. epbfiber.jpg Harold DePriest recognized the power of AT&T and Comcast in the Legislature, but vowed not to give up.
“Well, we would like to see the bill pass, but I think Gerald was dealing with the reality of the difficulty of moving the bill through the committee at this point in time,” he said Friday. “We will be back.
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Martin County Explores Uses for Network It is Building

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Martin County, Florida, is building a county-owned network (that we wrote about back in September) in response to gross overcharging by Comcast for the connections they need to connect their City Departments.  

The County Commission voted unanimously Tuesday to allocate $100,000 to pay experts to advise county officials about ways the new broadband network the county government is constructing could be used to generate revenue as well as promote economic development and job creation.

...

Precision Contracting Services of Jupiter started construction on the $4.2 million network in January and is expected to finish the project by January 2012. The network is expected to serve 280 government, public safety, educational and health care organizations.

Having committed to building a network to meet their own needs, they are now searching for ways to leverage that investment to best meet community needs.  They will evaluate laws, conduct a survey of residents and businesses to find what their needs/desires are, and possibly develop a business plan.  

Last Monday, the day before the planned vote, a Comcast regional VP had the gall to ask the County Commissioners to delay their vote.  No thanks Comcast, these folks have waited long enough for the broadband they need, that you have no interested in delivering in a timely nor affordable manner.  On Tuesday, the Council voted unanimously to approve the contract.  

Good for them.

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Customer Service From National Carriers is Terrible

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Though it is rarely, if ever, the top motivation for a community to build its own broadband network, the idea of local customer service that is actually responsive to the community ranks usually among the top 5 motivations. We love the idea of a "strangle effect" -- coined by folks at Wilson's Greenlight in North Carolina. If something goes wrong, you can find someone nearby to strangle. Compare that to these three stories. First - a coworker of mine had to return a Comcast set-top box after cutting back on services. When he drove to the Comcast storefront, the outside drop box was full of gear, so he stepped inside to a room packed with Comcastic homicidal folks who had waited too long for attention from the overworked counter folk. He asked to just drop his box but they said he would have to take a number and wait... so he could set his Comcast box on the counter because no one had emptied the box outside where it should have been placed. Another Comcast story comes to us from the Consumerist: where Comcast tries to repossess a cable modem is does not own. Finally, David Pogue recently recounted the story of Qwest demanding that a customer call a specific phone number to report that his phone was not working. Rachel, the person who experienced the terrible service, writes:
Do you suppose all communications giants are like this? “We are abjectly sorry and have instructed our employees to grovel at your feet, but we are simply unable help you, value you though we do. Yes, we’re helpless. You know, we’re only a giant corporation. You can’t really expect us to help you, can you? We’re sure you understand. Please visit our Web site again to order more products!” Is it truly impossible to debug a VoIP modem problem via e-mail for some technical or philosophical reason?
Yes, Rachel, those massive communications giant are all like that.
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Susan Crawford: Why Comcast/NBCU Matters

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The Comcast/NBCU merger poses a real threat to the future of innovation, competition, and the open Internet. Put simply: size matters. The larger Comcast gets, the more market power it has and the more all other markets that depend on broadband and media will be distorted. Susan Crawford knows this better than most and explains why everyone should be concerned about it. As we've harped on time and time again:
The crucial thing to understand is that high-speed Internet access to the home really is a crushingly-expensive natural monopoly service to install. The telephone companies haven’t found a way to make this work, because it’s so much more expensive to dig up the streets to install fiber than it is to upgrade cable electronics to DOCSIS 3.0. So they have backed off. The cable industry has made its investment, and is ready to reap its rewards of scale and high fixed costs - secure in the knowledge that no competition is coming after it, and having divided up the country neatly among its members. Meanwhile, the telcos are steadly losing fistfuls of money. As Morgan once said of railroads, “The American public seems to be unwilling to admit . . . that it has a choice between regulated legal agreements and unregulated extralegal agreements. We should have cast away more than 50 years ago the impossible doctrine of protection of the public by railway competition.” In the cable world, we are deep into unregulated extralegal agreements, and competition is not going to rescue us.
The longer communities wait to build this important infrastructure, the harder it will be. It is hard to imagine national candidate speaking more stridently about the important of the open Internet than did Obama and even he bowed to the pressure of the private Internet access providers. While we should pressure the federal government to regulate in the public interest, we must take responsibility for our future at the local level with smart investments.
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The Short Memory of Network Neutrality Sell-Outs

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Today, the FCC is poised to pass a half-ass attempt to preserve the open Internet against the interests of massive gatekeepers like AT&T and Comcast. Tim Karr rightly calls it Obama's "Mission Accomplished" moment. Fortunately, the likely result will be a couple of years in the courts before the rule is thrown out because the FCC has not properly ground its half-ass actions in any authority it has received from Congress. Perhaps when the FCC next has to deal with this, we'll have an FCC Chairperson with a backbone and a stronger interest in what is best for hundreds of millions of Americans than what is best for AT&T and a few other corporations. The FCC and supporters of this let's-keep-the-Internet-partly-open "compromise" will lump all critics as being extremist looneys. (Okay, the Republicans who oppose this might fit that description as they are literally making things up or totally confused about what is being decided). But let's look at the crazy looney rhetoric of FCC Chair Genachowski last year:
Genachowski proposed that the FCC formalize its four principles of network openness. To encourage broadband deployment and preserve and promote the open and interconnected nature of the public Internet, consumers are entitled:
  • to access the lawful Internet content of their choice.
  • to run applications and use services of their choice, subject to the needs of law enforcement.
  • to connect their choice of legal devices that do not harm the network.
  • to competition among network providers, application and service providers, and content providers.
To these, Genachowski proposed adding two more: The first would prevent Internet access providers from discriminating against particular Internet content or applications, while allowing for reasonable network management.
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To communities that seize broadband initiative, benefits flow fast

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On November 29, 2010, MPR published our commentary about community broadband. The Twin Cities has slower and more expensive broadband Internet than the nearby town of Monticello. The Twin Cities metro area has a population of 2.8 million and the highest density of people and businesses in the state. So why is our broadband Internet slower and more expensive than that enjoyed by Monticello, population 12,000? Several years ago, the city of Monticello (45 miles northwest of Minneapolis) recognized the increasing importance of reliable, high speed, low cost broadband. After the incumbent telephone and cable companies declined to build the network city leaders had in mind, the community decided to build one itself. Now, FiberNet Monticello offers some of the best broadband packages available in the country, while the Twin Cities is lagging. A new analysis by the Institute for Local Self-Reliance compares the available broadband speeds in Monticello to those available in the Twin Cities metro. In the metro, as in most of the United States, broadband subscribers choose between DSL from the incumbent telephone company (Qwest) and cable broadband from the incumbent cable company (Comcast). Monticello's offerings are faster at every price point, but Comcast appears to offer comparable downstream speeds in the highest tier of service. This apparent equivalence, however, is like comparing dirt roads with interstates. Both are roads that allow you to travel from point A to B, but they have fundamentally different characteristics in carrying capacity and reliability. For a variety of reasons, DSL and cable almost always fall short (and often, well short) of the advertised "up to" speeds, whereas full fiber networks regularly achieve the speeds they promise. In the metro, cable offers most residents the fastest option for broadband, but only one choice of provider. The Monticello network not only created a new choice for its residents, it induced the incumbent telephone company to greatly upgrade its network to remain competitive. Now, Monticello residents can choose between two extremely fast broadband providers, as well as a cable internet connection. The community-owned network may have only been the third broadband option, but it fundamentally changed the market.

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Comcast, Level 3, Peering, and a Bad Best Case Scenario

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So Comcast and Level 3 are in a peering dispute following the Netflix partnership with Level 3 to distribute their streaming movie service. Studies suggest Netflix movie streaming has become a significant chunk of Internet traffic, particularly at peak times. A quick primer on peering: the Internet is comprised of a bunch of networks that exchange traffic. Sometimes one has to pay another network for transit and sometimes (commonly with big carriers like Comcast and Level 3) networks have an agreement to exchange traffic without charging (one reason: the costs of monitoring the amount of traffic can be greater than the prices that would be charged). (Update: Read the Ars Technica story for a longer explanation of peering and this conflict.) Comcast claims that Level 3 is sending Comcast 5x as much traffic as Comcast sends to Level 3 and therefore wants to charge Level 3 for access to Comcast customers. Of course, as Comcast only offers radically asymmetrical services to subscribers, one wonders how Level 3 could be 1:1 with Comcast… At Public Knowledge, Harold Feld ties the dispute to network neutrality:
On its face, this is the sort of toll booth between residential subscribers and the content of their choice that a Net Neutrality rule is supposed to prohibit.  In addition, this is exactly the sort of anticompetitive harm that opponents of Comcast’s merger with NBC-Universal have warned would happen — that Comcast would leverage its network to harm distribution of competitive video services, while raising prices on its own customers.
Susan Crawford Susan Crawford wrote a lengthier piece about Comcast, Netflix, network neutrality, set-top boxes and NBC that is well worth reading (as is just about anything she writes).
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Putting Shareholders and Profits ahead of the Community

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One of the key differences between community owned networks and those driven by profit is customer service. Community-driven providers spend more and create more jobs in the community to ensure subscribers' needs are met. The massive private companies instead choose to outsource the jobs to call centers (sometimes in the U.S., sometimes outside) in order to cut costs (and jobs - see the report from the Media and Democracy Coalition). We've seen a few examples of the big carrier approach in this arena - as when Cablevision billed apartment residents $500 after a fire for the DVR that was consumed in the blaze... stay classy, Cablevision. Another difference between community networks and the big carriers is that big carriers see little reason to upgrade their anemic networks to ensure communities remain competitive in the digital age. As Free Press has long documented [pdf] big companies like AT&T have been investing less in recent years as the U.S. has continued falling in international broadband rankings. Up here in Minnesota, Qwest has invested in FTTN - what they call fiber-to-the-node. We call it Fiber-to-the-Nowhere. For those who happen to live very close to the node, they get slightly faster DSL speeds that are still vastly asymmetrical. Meanwhile, Qwest has branded this modest improvement for some as "fiber-optic fast" and "heavy duty (HD)" Internet, misleading customers into thinking they are actually going to get faster speeds than Comcast's DOCSIS 3. Much as I hate to praise the middling DOCSIS 3 upgrade, it certainly offers a better experience than any real results we have seen with Qwest. But as we carefully documented in this report, community networks offer more for less. Two friends recently moved to Qwest. One, J, was convinced by a Qwest salesperson that Qwest would be much faster so he signed up for a 20Mbps down package.
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