competition

Content tagged with "competition"

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Former Cable CEO on Competition and Wireless as Complement to Wired

Given the frequent claims of lobbyists for the cable companies regarding how incredibly competitive the broadband market is in the United States, I thought we might want to hear what John Malone, one of the most aggressive cable CEOs ever (TCI) has to say on the subject. He is now with Liberty, a media company among other things. Last year, in an investor call, he said,
Really, I think the cable business in the U.S. looks very attractive. It looks like the telcos are not going to aggressively overbuild cable with fiber and so, cable has a definite advantage when comes to high speed broadband, which seems to be something the public is totally in love with. ... But no, I think cable is very strong on the broadband side and I think the threat of wireless broadband taking away high speed connectivity is way overblown. There just is not enough bandwidth on the wireless side to substantially damage cable's unique ability to delivery very high speed connectivity. So I think everybody is going to do well in this mix.
I excised some middle comments that were also interesting - suggesting that cable may lose video customers but will do very well by continuing to grow broadband subscribers (a much higher profit margin service). For years, we have been saying that wireless is not a competitor to wired (specifically cable) and that there is no danger of competition when it comes to cable. Nice to see the insiders agree. Now if the we could just get the FCC to listen to those comments rather than the those of lobbyists...

Credit to Susan Crawford's new book, Captive Audience, where I read it first.

Photo courtesy of JSquish via Wikipedia Commons

Taking Advantage of Chairman Genachowski's Gigabit Challenge

On Friday, I wrote a harsh, quick response to FCC Chairman's Genachowski's so-called gigabit challenge announced in a guest column on Forbes. Since then, I have learned more about the 1 Gbps Challenge and I have to reiterate my frustration with it. We need the Chairman to reduce barriers to community-owned networks, not just recognize their successes. I'm not the only one reacting this way - Karl Bode has a thoughtful response as well. Let me start by giving some credit: Thank you for recognizing that the cable and DSL companies are failing to deliver the networks communities need. This announcement should be used to pressure the existing providers to invest in their networks. It is another important piece of evidence that communities having to choose only between cable networks and a slower DSL option are being left behind. But we need to also recognize that pressuring the existing providers to do better is not a solution in itself. Our slow, overpriced networks are the symptom of a problem, not the problem itself. The problem is that the massive cable and DSL companies are unaccountable to most of the communities they serve. Begging for more investment is better than doing nothing, but solves few problems. I have a challenge for the FCC Chairman: Use your power to make it less of a challenge for communities to build the networks they need. For too long, you have sat silently by as massive telecommunications firms made it all but impossible for smaller entities - public and private - to build competing networks. When the FCC Chairman finally gets around to supporting communities with definitive action to reduce the many unnecessary industry-created barriers to competition, that will actually be praise-worthy. Communities are smart to find ways of building their own networks, whether by owning and operating or finding partners to help. Nearly all the communities in the U.S. that have gigabit (and symmetrical at that!) connectivity today are served by networks owned by the community.

Comcast Brags About Lack of Broadband Competition in America

The next time you hear someone claiming that the broadband market in the U.S. has plenty of competition, remember this statement from Comcast CEO Brian Roberts.
And so each of the last two years, we have had modest increases in the cost of the broadband service, and yet we've had tremendous sales. We're 33%, 31% penetrated. We hope someday all of America has broadband. So the goal would be 100 or 90 [percent take rate]. We have one competitor.
And over the course of that 2011 interview [pdf], Roberts makes it clear that he (correctly) regards DSL as a very weak competitor. The only problem Comcast has is in those few markets where they overlap with Verizon's FiOS (or, left unstated, in areas like Chattanooga where the community itself has built a technologically superior network). Credit to Susan Crawford's new book, Captive Audience, where I read it first.

Goliath Regulator Asks For More Davids

In a column published today, Chairman Genachowski explains why the U.S. Needs 'Gigabit Communities.' It starts off with an accurate observation...
Walking the floor of the Consumer Electronics Show last week, I kept thinking of that line from Jaws, “You’re going to need a bigger boat.” All the Internet-connected, data-hungry gadgets that are coming to market sent a strikingly clear message: we’re going to need faster broadband networks. ... It’s essential to economic growth, job creation and U.S. competitiveness.
Yes! If only the head of the Federal Communications Commission understood what is preventing us from building those networks. Hint: It isn't a lack of demand. Google was inundated with applications for its gigabit service. Hundreds of communities have built their own networks (some of which he praises). Local businesses get it. Mayors get it. City councils get it. And unlike Chairman Genachowski, they know what the problem is: little incentive for massive, established cable monopolies to invest in networks when they are harvesting record profits and subscribers have no other choices. Wall Street not only gets it, it actually rejoices in it!
Comcast's traditional Cable Communications continues to grow and generate copious cash flow.. We're big fans of the firm's Video and High-Speed Internet businesses because both are either monopolies or duopolies in their respective markets.
What is our FCC Chair doing about this problem? He helped Comcast to grow even bigger, with more market power to crush those rivals that he is calling on to build gigabit test beds. Chairman G wants to spur hundreds of David's while refusing to curb Goliath's power. Bad news, Mr. Chairman, Goliath actually wins most of the time. Rather than doing his job, Genachowski is begging others to do it for him.

Susan Crawford, Captive Audience, and How to Kill the Cable Monopoly

Susan Crawford, author of the just-released Captive Audience: The Telecom Industry and Monopoly Power in the New Gilded Age, is our guest for the 29th episode of the Community Broadband Bits Podcast. A former adviser to President Obama, she has been a leading figure in the struggle to preserve an open Internet. Susan has long been an advocate of communities deciding for themselves if a community owned network is a wise investment and recognizes the benefits of smart government policies to prevent big companies like Comcast from dominating the telecommunications arena. We talk about her book and reactions to it -- big cable and telephone companies are attacking her under false pretenses by either putting words in her mouth or misrepresenting her main points. But we also discuss the steps concerned people can take to bring force some accountability on the big monopolies. We have previously noted Susan's words and presentations here and we noted some Captive Audience reviews here. 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 17 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 download the Mp3 file of this episode directly from here. Find more episodes in our podcast index. Thanks to mojo monkeys for the music, licensed using Creative Commons.

The Empire Lobbies Back: How National Cable and DSL Companies Banned The Competition in North Carolina

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In late 2006, Wilson, North Carolina, voted to build a Fiber-­‐to-­‐the-­‐Home network. Wilson’s decision came after attempts to work with Time Warner Cable and EMBARQ (now CenturyLink) to improve local connectivity failed.

Wilson’s decision and resulting network was recently examined in a case study by Todd O’Boyle of Common Cause and ILSR's Christopher Mitchell titled Carolina’s Connected Community: Wilson Gives Greenlight to Fast Internet. This new report picks up with Wilson’s legacy: an intense multiyear lobbying campaign by Time Warner Cable, AT&T, CenturyLink, and others to bar communities from building their own networks. The report examines how millions of political dollars bought restrictions in the state that will propagate private monopolies rather than serve North Carolinians.

Download the new report here: The Empire Lobbies Back: How National Cable and DSL Companies Banned The Competition in North Carolina

These companies can and do try year after year to create barriers to community-­‐owned networks. They only have to succeed once; because of their lobbying power, they have near limitless power to stop future bills that would restore local authority. Unfortunately, success means more obstacles and less economic development for residents and businesses in North Carolina and other places where broadband accessibility is tragically low.

It certainly makes sense for these big companies to want to limit local authority to build next-­‐generation networks. What remains puzzling is why any state legislature would want to limit the ability of a community to build a network to improve educational outcomes, create new jobs, and give both residents and businesses more choices for an essential service. This decision should be made by those that have to feel the consequences—for better and for worse.

This story was originally posted on the ILSR website.

 

Community Broadband Bits 25 - Dewayne Hendricks Returns

Dewayne Hendricks has returned for his second appearance on the Community Broadband Bits Podcast, continuing our discussion about the potential for wireless technologies to improve how we access the Internet. We recommend listening to his first appearance in episode 18 before this one. Here, we take up the old wired vs. wireless debate, but quickly determine that such a framing is useless. Wires and radios are actually complementary, not substitutes. In fact, Dewayne explains how he and other entrepreneurs cannot build the great wireless networks they want to because most communities lack the robust wired infrastructure necessary to support a strong wireless network. The lack of competition among last mile providers like Comcast and AT&T leave too few options for innovators to build better networks -- which is, of course, the aim of existing providers that do not want to encourage any competition that would eat into their profits. Read the transcript from this discussion 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 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 download the Mp3 file of this episode directly from here. Find more episodes in our podcast index. Thanks to mojo monkeys for the music, licensed using Creative Commons.

Wilson's Greenlight Leads North Carolina in Fast Internet

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Following the collapse of key industries, a town of 50,000 in eastern North Carolina had to make a hard choice. It wanted to support existing businesses and attract new ones but the cable and telephone companies were not interested in upgrading their networks for cutting edge capacity. So Wilson decided to build its own fiber optic network, now one of the fastest in the nation, earning praise from local businesses that have a new edge over competitors in the digital economy. In response, Time Warner Cable lowered its prices and modestly boosted available Internet speeds, contributing to the $1 million saved by the community each year. Download Carolina's Connected Community: Wilson Gives Greenlight to Fast Internet here. The Institute for Local Self-Reliance and Common Cause have just released a case study of how and why Wilson built Greenlight, a citywide next-generation fiber-to-the-home network that set the standard for connectivity in North Carolina. The report is authored by Todd O'Boyle of Common Cause and Christopher Mitchell of the Institute for Local Self-Reliance. The network, owned and operated by the municipal utility, offer telephone, television, and Internet services to every resident or business in the city. Over 6,000 households and businesses have subscribed, a take rate of over 30% and growing. Additionally, the network has connected all of the schools with at least 100 Mbps connections. Downtown has free Wi-Fi and the library has benefited with a higher capacity connection for people looking for jobs and taking computer classes. The Federal Communications Commission ranks North Carolina last in the nation in percentage of households subscribing to at least a "basic broadband" service, largely because Time Warner Cable, CenturyLink, and AT&T have declined to upgrade their networks to modern standards. Only 13% subscribe to a connection that is at least 4 Mbps downstream and 1 Mbps upstream -- the minimum required to take advantage of basic Internet applications according to the FCC. This story was originally posted on the ILSR website. This report is the first of two.