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competition
Content tagged with "competition"
Susan Crawford, Captive Audience, and How to Kill the Cable Monopoly
The Empire Lobbies Back: How National Cable and DSL Companies Banned The Competition in North Carolina
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
Wilson's Greenlight Leads North Carolina in Fast Internet
Charter Losing Money, Cuts Customer Support
Investors don’t think too highly of the company either. Charter reported a wider third-quarter loss in November, losing $87 million compared with $85 million lost during the same quarter last year. Executives tell Wall Street the company was in chaos before new management under Tom Rutledge took over operations. Rutledge’s priorities are to invest in new set top boxes, convert more of its systems to digital, raise prices on services, cut back on promotions and retention offers, and centralize customer support operations.Imagine that! When communities have to make investments and suffer losses, they are accused of failing. Charter is losing money (and recently emerged from a bankruptcy proceeding) and trying to make changes to correct its condition. This is what happens to many firms in telecommunications. Only when it happens to those that are owned by communities, they are besieged with claims that such a situation is somehow proof that the public cannot own and operate networks. Note that others, like Comcast, are actually lauded by Wall Street for operating in areas with so little competition that they can increase their rates at will -- hard not to make a profit in that case. Which is precisely why existing cable and DSL companies push laws to restrict local authority to build better networks.
Comcast Gamed FCC for Internet Essentials "Concession" in NBC Merger
Last year, when Comcast unveiled its Internet Essentials program, the corporate powerhouse received accolades from FCC Chairman Julius Genachowski. The program was promoted as an example of corporate philanthropy helping to bridge the digital divide.
Comcast received all kinds of positive media coverage for its program. Most of that coverage failed to note that the FCC required Comcast to integrate the program as one of the supposed concessions offered in return for Comcast being able to take over NBC -- giving the largest cable monopolist in the US even more market power.
DSLReports has publicly exposed what many of us suspected all along -- the program was not a concession on Comcast's part. Internet Essentials was originally conceived as a program that would offer slower connections to certain low income households at affordable rates that nevertheless remain profitable for Comcast.
A recent Washington Post Technology profile on Comcast's Chief Lobbyist David Cohen, notes how the program was actually conceived in 2009, but:
At the time, Comcast was planning a controversial $30 billion bid to take over NBC Universal, and Cohen needed a bargaining chip for government negotiations.
“I held back because I knew it may be the type of voluntary commitment that would be attractive to the chairman” of the Federal Communications Commission, Cohen said in a recent interview.
Eligibility depends on four factors:
Community Broadband Bits 23 - Harold Feld from Public Knowledge
Community Broadband Bits 21 - Benoit Felten on Stokab
MI-Connection Embraces New Strategies, Increases Speeds for Free
MI-Connection, the North Carolina community-owned network serving Davidson, Cornelius, and Mooresville, is upgrading network speeds and unveiling a new marketing campaign. MI-Connection was formed when a few towns north of Charlotte purchased the old, dilapidated Adelphia cable network out of bankruptcy and began rehabbing it.
According to David Boraks of the DavidsonNews.net:
The company on Dec. 10 will begin selling a new top speed internet service tentatively called “Warp Speed Broadband,” though the name could change. It will offer 60 mbps downloads and 10 mbps uploads. Customers can get it for $80 to $100, depending on whether they bundle it with TV and telephone.
Existing customers also will get faster speeds Dec. 10, at no extra charge (Download speed x upload speed): 8×4 becomes 10×5, 12×4 becomes 15×5, 16×4 becomes 20×5 and 20×4 becomes 30×10.
Notice that this community network offers faster upstream speeds than most privately owned cable networks -- because they recognize the importance of empowering subscribers rather than hoping they will just consumer video and do little else.
The DavidsonNews.net article also covered MI-Connection's last quarter financial audit report. The network has faced chronic financial problems but things continue to improve. From the article:
The financial report for the quarter that ended Sept. 30 showed that the company grew revenues in all three of its businesses – cable TV, telephone and internet. Altogether, revenues were up 6.5 percent from the first quarter a year ago, to $4,114,992. Expenses fell 8.7 percent, in part because of savings on what the company pays its high-speed internet providers.
The company’s earnings from day-to-day operations continued to grow.
A Match to Watch: Tennis Channel v. Comcast
Back in 2010, we reported on the merger between Comcast and NBC, which was in the works at the time. One of the issues that came up was how programming is chosen.
At the time, the Tennis Channel had filed a suit against Comcast, alleging that Comcast did not make Tennis Channel programming available to as many subscribers as the Golf Channel and NBC Sports (both belong to Comcast). Comcast, under the Communications Act and Commission rules, is required to place channels owned by others on tiers equal to its own similar types of channels and can't play favorites.
The FCC had reviewed the case at various levels for two years (there was an appeal) and finally, in July of this year, issued a decision in favor of the Tennis Channel. The Tennis Channel alleged discrimination, Comcast argued the Tennis Channel was using the FCC to get out of a contract it wanted to escape. According to a Meg James LA Times article:
The FCC ordered Comcast to provide the Tennis Channel with distribution comparable to the two sports channels, which would effectively increase its coverage by about 18 million homes, and force Comcast to pay Tennis Channel millions of dollars more each year in programming fees.
It was the first time that a major cable operator has been found in violation of federal anti-discrimination program carriage rules that were established in 1993.
Comcast was ordered to remedy the situation within 45 days, a window that would make the Tennis Channel available in more homes during one of the biggest tennis events of the year, the U.S. Open in New York. The channel is currently available in about 34 million homes nationally.
Comcast immediately asked for a stay from the remedy, appealing to the U.S. Court of Appeals for the D.C. Circuit. Comcast was granted the stay while the case is argued on appeal. Once again, Comcast's army of lawyers are strategically using the court as a way to slow down an adversary's remedy.