competition

Content tagged with "competition"

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Paid Prioritization Threat Reinforces Value of Community Networks

Recent reports out of the FCC say that it will allow ISPs to create and sell "fast lanes" of Internet access to the companies with sufficiently deep pockets to afford them. While some people argue over whether this violates network neutrality principles or not, the more important point is that most communities have no control over how the networks on which they depend are operated. The big ISPs, like Comcast and AT&T, are focused on maximizing revenue for their shareholders. It is why they exist. So they will want to make the fast lanes as appealing as possible, which in turn means making providers like Netflix unable to deliver a high quality product without paying special tolls to Comcast. What does that mean for you? It means you should expect to see the big providers slow their already anemic pace of investing in higher capacity connections in favor of pushing content providers into the paid prioritization schemes. It also means that you may have to start paying more for Netflix or Hulu, where the additional money goes to the ISP you already overpay for comparatively lousy service. A range of ISPs, from privately owned Sonic.Net in California to Chattanooga's Electric Power Board right up to Google have demonstrated that they can deliver a "fast lane" to everyone. This fight over paid prioritization is nothing more than the big cable and telephone companies trying to increase their profits while minimizing needed investments in higher quality service to everyone. Unless you live in an area with a community-owned network. Unlike the big providers with a fidiciary responsibility to distant shareholders, community owned networks are directly accountable to the community. Their mission is to maximize local benefits, not extracting as much wealth from households as possible.

Seattleites Want More Than Rhetoric in Quest for Better Broadband

In a recent SLOG post from the Stranger, Ansel Herz commented on Mayor Ed Murray's recent statement on broadband in Seattle. Murray's statement included:

Finding a job, getting a competitive education, participating in our democracy, or even going to work for some, requires high speed internet access. I have seen people say online, "I don’t need a road to get to work, I need high speed internet." Seattle would never leave the construction of roads up to a private monopoly, nor should we allow the City’s internet access to be constructed and managed by a private monopoly.

It is incredibly clear to me and residents throughout the City of Seattle, that the City’s current high speed internet options are not dependable enough, are cost prohibitive for many, and have few (if any) competitive options.

The Mayor also hinted that if the City needs a municipal broadband network, he would "help lead the way."

As a Seattleite, Herz knows firsthand about the lack of connectivity options in the area. Herz writes:

This is both encouraging and disappointingly tentative language from the mayor. It seems to cast municipal broadband as a last resort. Municipal broadband is a no-f*cking-brainer. [our *]

Herz turned to Chris for perspective:

"I have seen this from many Mayors who talk about how someone should do something but we don't always see concrete actions because of the difficulty and the immense opposition from some powerful companies like Comcast," Christopher Mitchell, the Director of the Telecommunications as Commons Initiative, who's worked with cities across the country on this question, tells me.

Seattle doesn't know what to expect from a Mayor that Comcast tried to buy (we suspect they did not succeed but have nonetheless sent a loud message). It is encouraging to see that the issue has not simply disappeared, but Herz and his neighbors want more:

Long List of Public Interest Groups Sign on to Free Press Letter Opposing Comcast Time Warner Cable Merger

The Free Press announced that more than 50 public interest groups, including the Institute for Local Self-Reliance, signed on to its letter in opposition to the Time Warner/Comcast merger.

The letter, addressed and delivered to Attorney General Eric Holder and FCC Chairman Tom Wheeler, begins:

The proposed Comcast-Time Warner Cable merger would give one company enormous power over our nation’s media and communications infrastructure. This massive consolidation would position Comcast as our communications gatekeeper, giving it the power to dictate the future of numerous industries across the Internet, television and telecommunications landscape.

In the press release, Craig Aaron, President and CEO of the Free Press, stated:

“The question before the FCC is whether this deal serves the public interest. The answer is clear: A bigger Comcast is bad for America.

“Merging the nation’s two biggest cable-Internet providers would turn Comcast into our communications gatekeeper, able to dictate the cost and content of news, information and entertainment. We need an Internet and video marketplace that offers people high-quality options at prices they can afford — not a near-national monopoly determining what we can watch and download.

“In the past four years, Comcast has raised basic cable rates in some markets by nearly 70 percent. Its top lobbyist has admitted that the price increases will continue to skyrocket if the merger goes through. And that's about the only thing Comcast has said about this deal that you should believe.

“The growing chorus of groups opposing this takeover knows the truth. The only rational choice is for the FCC and Justice Department to reject this merger."

 

American Enterprise Institute Scholar Calls DSL Obsolete

For the second time this year, one of the major defenders of the cable and telephone companies has admitted that DSL cannot provide the Internet access we need as a nation. This admission validates our research as well as that of Susan Crawford and others that show most Americans are effectively stuck with a cable monopoly. On April 7, 2014, the Diane Rehm show hosted another discussion on telecommunications policy with guests that included Jeffrey Eisenach, the Director of the Center for Internet, Communications, and Technology Policy at the American Enterprise Institute. During that show, Eisenach stated, "The vast majority of Europeans still only have DSL service available, which we in the United States consider really almost an obsolete technology now." Interestingly, Eisenach and others have repeatedly claimed that there is no market failure in the US - that we have plenty of choices. But most Americans have to choose between what most now admit is an obsolete DSL product and cable. Eisenach would add 4G LTE as another competitor, but as we have noted many times, the average household would have to pay hundreds of dollars per month to use their LTE connection as a replacement for DSL or cable. The average household uses something like 40-55 GB of data per month. Given the bandwidth caps from LTE providers, the overage charges quickly result in a bill of approximately $500 or more depending on the plan. This is why the overwhelming majority of the market uses mobile wireless as a complement, not substitute to wired networks. We are left with one conclusion: there is no meaningful competition or choice for most of us in the residential telecommunications market. And no real prospect of a choice either as the cable companies only grow stronger. This is not the first time Eisenach admitted that DSL is insufficient for our needs. Back in January, on Diane's show, he again used Europe's dependence on DSL as evidence that it was falling behind: "They are reliant on these 20th century copper networks which have real limits on the amount of speed that they can deliver." Even those who only want the private sector to deliver services are starting to admit that the existing providers are failing us.

Diffraction Analysis Offers Free Webinar on FTTH, April 24th, 9 AM ET

On April 24th, Benoit Felten and his organization, Diffraction Analysis, will host a free webinar to discuss results from their latest study. The study, Why Consumers Love FTTH – The FTTH Consumer Experience Study, delves into the fiber experience in Sweden. Here are some preliminary findings from the report:

  • In Sweden a huge majority FTTH users (75%) think their broadband is better than before they had fibre.
  • 67% of Swedish broadband users think broadband over fibre is ‘Very Good’, but only 13% think the same of DSL.
  • Swedish FTTH subscribers use video-communication over the Internet five times as much (25%) as DSL users.
  • In Sweden 59% of FTTH users think fibre broadband is sustainable. Only 44% of DSL users think the same of DSL.
  • In Sweden, 59% of DSL users find their broadband price excessive vs. only 32% for FTTH users.
  • For FTTH users in Sweden, quality of broadband is the 1st criterion after home price when choosing a new home.

He recently spoke at the 2014 Broadband Communities Summit in Austin, Texas. Felten also spoke on Smart Cities and Infrastructure at the FTTH Conference in Stockholm, Sweden, in February. Chris interviewed Felten in episode 21 of the Community Broadband Bits podcast back in 2012, when the two discussed the famous network in Stokab. 

You can register for the free webinar at GoTo Meeting.

Consumerist Sounds Off on Internet Essentials and Comcast's Hidden Agenda

In a Consumerist article, Kate Cox takes a look at who is benefitting the most from Comcast's Internet Essentials program and - guess what - it is Comcast.

The program has brought Internet access to a number of people who may not otherwise have been able to get online and that's a good thing. According to Comcast, 300,000 families are receiving 5 Mbps download for the program's $9.99 monthly rate. All considered, that is 300,000 families who might otherwise not have Internet access at all.

But Cox noticed how the gigantic cable conglomerate pulls the program out to dazzle politicians whenever they need a little public opinion boost. In August 2013, Comcast announced it was extending the program:

Comcast, meanwhile, is not acting out of a sense of charity or philanthropy. They’re satisfying federal requirements to help bring broadband access to the poor. And Internet Essentials is only available where Comcast already operates — so Comcast isn’t spending a dime to run infrastructure to any place where it doesn’t already exist.

They sure get to benefit from looking philanthropic, though. Community outreach is a huge part of Comcast’s extensive lobbying efforts. And in looking to gain the blessing of federal regulators on their impending buyout of Time Warner Cable, “benefit to the community” is one of their best cards to play.

Cox notes the significant obstacles to signing on to the program, as we did in 2012. She also notes that families who need the program most are not always the ones who are able to find the information to enroll:

Process Matters: Harold Feld's Guide to the Time Warner Cable/Comcast Merger

The proposed Comcast/Time Warner Cable deal will be on everyone's mind for many months to come. Thanks to Harold Feld, it is now possible to follow the process as it moves forward. Feld began a series of posts earlier this month that map out the review as it moves from the Department of Justice Antitrust Division to the Federal Communications, and finally to Congress. As Feld notes, the entire process will last six months at least and could run for more than a year. 

In addition to drawing a process map, Feld provides insightful subtleties on the purpose behind each step in the review. He also offers political analysis that may influence the outcome. Feld gets into the unique review process, burdens of proof, and relevant definitions at each stop along the way. Highly recommended, especially for law students.

Part I - Introduction

Part II - Antitrust Review at the DOJ

Part III - Federal Communications Commission analyzes public interest

Part IV - The proposal moves through the committee process and the public has a chance to express themselves to their elected officials (including lobbyists)

 

To Overbuild or Underbuild? A Rural Policy Conundrum - Community Broadband Bits Podcast #91

Lisa Gonzalez and I, Christopher Mitchell, are back in studio for a short conversation about the implications of a municipal network or a coop receiving subsidies from government to engage in overbuilding, where it builds a fiber network in an area already served by slow DSL and cable networks. This has become an important issue as Minnesota considers a fund that would encourage networks in areas currently unserved and possibly underserved. We discuss the economics, fairness, and practial realities of both allowing "overbuilding" and disallowing it as Minnesota features two similar networks that have come to different conclusions, to the advantage and disadvantage of different local stakeholders. Read the transcript from this episode here. 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 13 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed. Listen to previous episodes here. You can can download this Mp3 file directly from here. Find more episodes in our podcast index. Thanks to Valley Lodge for the music, licensed using Creative Commons. The song is "Sweet Elizabeth."

History of the Quickly Subverted 1996 Telecommunications Act - Community Broadband Bits Episode 89

If all had gone according to the plan behind the 1996 Telecommunications Act, we would have lots of competition among Internet service providers, not just cable and DSL but other technologies as well. Alas, the competing technologies never really appeared and various incarnations of the FCC effectively gutted the common carriage requirements at the heart of the Act. Earl Comstock joins us today to explain what they had in mind when they spent years developing the goals and text of the Act. A staffer to Senator Stevens - and yes, we discuss the legacy of Senator "series of tubes" Stevens and you might be surprised when you learn more about him - Earl helped to craft the Act and then had to watch as the FCC and Courts misinterpreted it. At the heart of our conversation is what they believed would be necessary to achieve the goals of expanding access to telecommunications service to all. Read the transcript from our conversation here. 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 30 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed. Listen to previous episodes here. You can can download this Mp3 file directly from here. Find more episodes in our podcast index. Thanks to Valley Lodge for the music, licensed using Creative Commons. The song is "Sweet Elizabeth."

Overview of Stockholm's Stokab - Community Broadband Bits Episode #88

Having just returned from a short trip to Sweden, Lisa Gonzalez and I discuss what I learned and how Stockholm has become one of the most connected cities on the planet. We talk about how Stockholm built a massive dark fiber network that has enabled competition at the service layer, the status of telecommunications in Sweden, and what lessons we can learn in the U.S. from their experience. Read the transcript from this episode here. 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 15 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed. Listen to previous episodes here. You can can download this Mp3 file directly from here. Find more episodes in our podcast index. Thanks to Valley Lodge for the music, licensed using Creative Commons. The song is "Sweet Elizabeth."