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Small City Fights Comcast Over Institutional Network
Reports have recently surfaced from The Detroit News and Patch.com that a town in Michigan is now fighting Comcast over who owns their network.
Fifteen years ago, West Bloomfield, Michigan, population about 65,000, wanted an Institutional Network (I-Net) to connect all the important services, like emergency response, police, fire, and water, with a dedicated high-speed network. The town entered into a franchise agreement in order to share the construction costs with the incumbent cable company, which at the time was MediaOne. According to the township, MediaOne offered to contribute $400,000 to the cost of construction as part of that agreement.
The agreement was transferred to Comcast in 2000; Comcast acquired MediaOne in 2002. MediaOne and successor Comcast have provided "free high-speed bandwidth transport as well as interconnectivity" during the life of the network claims Comcast in a letter submitted to the court. The cable giant also describes the practice as a "benefit not provided by Comcast's competitors" and wants it to stop. The franchise agreement expired on October 1 but was renewed until 2025.
To The Courts
Comcast and the town are now fighting over ownership of the infrastructure. With Comcast demanding new fees, the town is bringing a lawsuit. Comcast, however, maintains that it owns the I-Net that the town uses for all its important communications. The Detroit News reports that the township is coming out swinging:
Fibrant Rolls out 10 Gbps, A Look At Salisbury's Challenges in FTTH
Salisbury, North Carolina's Fibrant, now holds the distinction of offering the fastest Internet access in the country. The municipal network is making 10 Gbps symmetrical connectivity available for residents and businesses.
Fibrant's first 10 Gbps customer is Catawba College, a local school that will use the ultra-fast connections for its new Digital Media Creation and Collaboration labs. In a press release Joanna Jasper, Catawba CIO stated:
"By moving to Fibrant's 10 Gbps speeds, the College is in a better position to differentiate itself. We can bring world-class broadband services to our campus community to support the next generation of educational applications."
"The future is all about rich immersive digital media and being able to communicate and collaborate with others in real-time regardless of where people are in time and space."
The city of Salisbury hopes this new standard will set it apart from other North Carolina communities and entice more economic development. From a BizJournals article:
“It helps us differentiate ourselves” among cities and states seeking technology companies, [says Kent Winrich, Director of Broadband and Infrastructure Services]. “It will attract international companies. It’s not sniping businesses from Charlotte.”
Winrich sees Salisbury attracting technology companies that need the bandwidth for real-time connections to clients and suppliers — software developers and data centers, for example.
The network, which already offers gigabit connectivity to businesses and residents for around $100 per month, has attracted several businesses to a community that once struggled with job loss. Mayor Paul Woodson told WFAE that the investment in Fibrant grew out of necessity:
Orono and Old Town Receive Funding for Fiber in Maine
The Old Town-Orono Fiber Corporation (OTO Fiber), the entity created by the cities of Old Town and Orono in Maine to design, install, maintain and manage a planned fiber network, recently received a grant for $250,000.
The funds, awarded by the Northern Border Regional Commission (NBRC), will help the communities commence their open access network project. According to a statement released by Maine Senators Angus King and Susan Collins, this was one of six awards to Maine communities. The other grants included road, sewer, and other municipally-owned facilities needed to maintain or grow jobs in the northern counties of Maine.
Congress created NBRC in 2008 as a state-federal partnership to encourage job growth in several northern counties of Maine, Vermont, New Hampshire, and New York that experience economic distress.
In 2014, Old Town and Orono, working with the University of Maine, had been awarded ConnectME funds for the project but the funding was blocked by Time Warner Cable. Those funds were meant to string approximately 4 miles of cable intended for integration into a much larger network to eventually connect to the state's Three Ring Binder network. The ConnectME Authority chose to withhold the funds, based on TWC's argument that this open access network would overbuild potentially 320 subscribers but OTO Fiber vowed to continue and seek funds elsewhere. The funding blocked by TWC amounted to $125,000.
Approximately 7,800 people live in Old Town; Orono is home to a little over 10,000 people and the Unversity of Maine where over 11,000 students attend classes.
Albany, NY Proposes Feasibility Study for Municipal Broadband Service
In July, the city of Albany, NY released a Request for Proposals (RFP) seeking qualified consulting firms to conduct a feasibility study for a municipal broadband service. As the RFP states, the study will look to develop strategies, find gaps in service and adoption, and develop a business plan to explore partnerships between the city and private ISPs.
According to Broadband Communities magazine, a working group comprised of several important community organizations and business groups in Albany will help to steer plans for the possible municipal broadband initiative. Jeff Mirel, a technology professional in Albany and a member of the working group, explains the group’s goals for the feasibility study:
“The first step is asking the right questions, which is what we want this study to do. What are the real broadband needs and issues that both businesses and residents experience here? Is it infrastructure, technology, education, affordability? How do we address the gaps to not only keep and attract companies, but bring these employers and a connected local workforce together? By taking a deep, comprehensive look at broadband access and usability, along with best practices, we can move towards meaningful, actionable strategies.”
This news out of Albany, a city of about 100,000 people, comes as major gaps persist in high speed broadband access in many parts of the state. FreeNet, Albany’s free wireless network, received a $625K state grant in 2009 earmarked to expand its service. But neither FreeNet nor Time Warner Cable and Verizon, the two biggest providers of broadband service in Albany, provides the fast, affordable, reliable connectivity a municipal fiber-based network could provide.
Hudson Lays Out Details for Its Municipal Gigabit Network
Hudson, Ohio's upcoming municipal network, Velocity Broadband, may be serving commercial customers as early as September, reports the Hudson Hub Times. At a July 22nd Rotary Club meeting, Assistant City Manager Frank Comeriato presented details on the plan. The city has no plans to serve residents but once business services are in place, they may consider a residential build out.
The gigabit network, to be owned and operated by the city of Hudson, will be deployed incrementally. Incumbents Time Warner Cable and Windstream serve local businesses but a majority complain of unreliable connections and unaffordable prices in the few places where fiber is available.
Earlier this year, the city conducted a survey and businesses responded:
"They wanted better service and speed," [Comeriato] said. "After only two vendors responded to the city to offer the service, the city decided it could offer the service like it offers public power, water and other infrastructure."
Hudson officials realize that it connectivity is an essential service for economic development and that businesses have no qualms with relocating to places where they can get the bandwidth they need:
"Economic development is 80 percent retention, and Hudson businesses are unhappy with their current service, he added. "They want something like this."
Hudson Public Power has been preparing by training crews to deploy the infrastructure. Like other communities that have recently decided to invest in municipal networks, Hudson will focus only on Internet access and voice.
Earlier this year, the City Council approved the initial $800,000 capital expenditure to begin the deployment. According to Hudson Communications Manager Jody Roberts, the city expects to spend another $1.5 million in 2016 on infrastructure before they light the network, scheduled for 2016.
New Report on Bandwidth Caps From Open Technology Institute
The Open Technology Institute (OTI) at the New America Foundation recently released its report on bandwidth caps. "Artificial Scarcity: How Data Caps Harm Consumers and Innovation" is the latest warning about an issue with grave implications. The PDF is now available to download.
Last November, the Government Accounting Office (GAO) released a report [PDF] with serious comments on how ISPs might abuse their power through bandwidth caps. In that report, the GAO strongly suggested the FCC take action.
This report by Danielle Kehl and Patrick Lucey further examines how this profit grabbing technique from the big ISPs impacts consumer decisions and usage.
From the OTI press release:
In this paper, we examine the growth and impact of usage-based pricing and data caps on wired and mobile broadband services in the United States. We analyze the financial incentive that Internet service providers (ISPs) have to implement these usage limits and discuss research that demonstrates how these policies affect consumer behavior. In particular, we explain how data caps can make it harder for consumers to make informed choices; decrease the adoption and use of existing and new online services; and undermine online security.
It is also increasingly clear that data caps have a disproportionate impact on low-income and minority populations as well as groups like telecommuters and students. In the conclusion, we urge the Federal Communications Commission (FCC), particularly as the new Open Internet Order goes into effect, to open up a serious inquiry into whether data caps are an acceptable business practice.
In addition to their own data and conclusions, Kehl and Lucey provide information to many other resources that tackle the implications of bandwidth caps. As consumers' need for bandwidth increases with their changing Internet habits, this topic will only become more pressing.
Graphic: LD 1185 Proposes Planning Grants for Munis in Maine
In late April, LD 1185 and several other broadband bills came before the Maine House Energy, Utilities, and Technology Committee. We have seen a flurry of activity in Maine this year as local communities deploy networks, develop plans, or begin feasibility studies. Likewise, the state legislature has been active as House and Senate members try to defibrillate the barely beating heart of the state listed as 49th for broadband availability.
The national providers in Maine - Time Warner Cable and FairPoint have little interest or capacity to invest in high quality services in Maine. Time Warner Cable is more focused on major metros and being acquired. FairPoint is laying off workers and also, positioning itself to be acquired. Fortunately, these big companies aren't the only option for improving Internet connectivity in Maine.
LD 1185, presented by Representative Norm Higgins, seeks to establish $6 million this year in funds for local communities that wish to deploy municipal networks. Maine already has the middle mile Three Ring Binder in place; the focus of this proposal is to help communities get the infrastructure they need to connect to it. In an effort to get the word out about the bill and grow support, Higgins and his team created this graphic explaining the proposal (a 2-page printable edition of the graphic is available for download from the link below):
Happy Friday! New Funny or Die Video Spoofs Cable TV Bundles
Funny or Die offers up a new video, If Everything Was Bundled Like Cable, starring David Koechner. None of us like paying for stuff we don't use, and television channels are no exception. Here are some examples of that same model as it applies to other everyday activities.
"I don't like your way! Fix it!"
Comcast Merger Wrap-up and Anti-Monopoly Policy - Community Broadband Bits Episode 148
Our Totally Not Ironic Letter of Support for the Comcast/TWC Merger
Last week, the New York Times reported that the “outpouring of thoughtful and positive comments” Comcast has received for their Time Warner Cable proposed merger is much more than it’s cracked up to be. We are shocked, shocked, to learn that organizations receiving a lot of Comcast charity are endorsing its merger plans.
After a hasty staff meeting, we decided that for a mere $250,000 we too, could see the benefits of this monopolistic mega-merger. We know they ghostwrite many of their most favorable letters, but we want to save them the trouble, by providing our own glowing endorsement.
Dear Chairman Wheeler,
After careful consideration, we wish to share our strong support for the Comcast/Time Warner Cable merger. Firstly, we want to make absolutely clear that our endorsement of this union has absolutely nothing to do with $250,000 generously donated to our organization, no strings attached, by Comcast. After years critiquing their slack customer service, their perennially rising prices, and their lobbying to prevent real competition, we now think a merger between the two most hated companies in America is a way awesome idea!
We support the company’s efforts to announce gigabit speeds while charging high enough prices to ensure no one calls their bluff. We hope that the merger doesn’t distract Comcast from its efforts in Philadelphia to never pay municipal property taxes or to ensure low wage workers have no sick days in the City of Brotherly Love.