monopoly competition

Content tagged with "monopoly competition"

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Bell Canada’s Ziply Acquisition Raises Questions About Open Access In The Pacific Northwest

Canada’s biggest telecom giant has acquired Ziply Fiber – and a sizable swath of municipal operation agreements for open access fiber scattered across the Pacific Northwest. Bell Canada and Ziply’s joint announcement indicates that the full deal will be around $5 billion Canadian, plus an additional $2 billion in acquired debt.

The acquisition could help accelerate Ziply’s planned expansion across the Pacific Northwest, where the company’s fiber network currently passes 1.3 million locations across Montana, Idaho, Oregon, and Washington State.

At the same time, Bell Canada’s history of anti-competitive behavior could herald a culture shift at the ascending provider. Ziply and Bell Canada’s rapid-fire acquisition of smaller providers across the Pacific Northwest could also risk undermining the pro-competitive benefits of the kind of open access policies Ziply previously embraced.

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Bell Canada service vehicle

Ziply was formed when WaveDivision Capital purchased Frontier Communications’ Pacific Northwest operations in 2020. It has quickly become a major player across the four states thanks in part to numerous public private partnerships with municipalities, and a 2022 announcement of $450 million in new private sector funding.

Northampton, MA Welcomes Gateway Fiber, Hasn’t Ruled Out Municipal Network

Though Northampton, Massachusetts residents still broadly support the construction of a city-owned municipal fiber broadband network, city officials are celebrating the arrival of Gateway Fiber, which will soon be delivering a more affordable fiber option, and more broadband competition, to the traditionally underserved city.

Gateway Fiber recently unveiled plans to deliver multi-gigabit speeds to large swaths of the city. The company, which will finance the entirety of the build, says it’s already invested $3 million in the project so far.

It’s a welcome arrival for a city that’s been frustrated by substandard service provided by regional telecom monopolies, and flirting with the idea of its own municipal broadband network for the better part of the last decade. Some of the city’s efforts on this front have made it easier for providers like Gateway to serve the city of 29,000.

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Northampton MA map

“While we don’t have a final cost estimate for the project, it will be a multi-million-dollar investment that will benefit both residents and small businesses in the Northampton area,” Gateway Fiber representative David Workman tells ILSR. “The project is 100 percent funded by Gateway Fiber, and we are also exploring grant opportunities that can be used to address digital equity.”

A ceremonial ribbon cutting ceremony for the project was held in late September. The multi-phase construction (4,000 locations passed in phase one, 5,000 locations passed in phase two) is expected to extend well into 2025.

LUS Fiber Brings Popular Broadband Service Into Church Point, Louisiana

Lafayette Utilities System’s LUS Fiber subsidiary is taking the show on the road. Louisiana’s only publicly-owned broadband provider says it’s expanding access into nearby Church Point, bringing affordable fiber access to the town of nearly 4,200 residents.

LUS Fiber was awarded a $21 million grant to expand fiber outside of Lafayette as part of the U.S. Department of Commerce’s National Telecommunications and Information Administration’s (NTIA) Broadband Infrastructure Program (BIP).

“This expansion not only improves the lives of our residents but also enhances opportunities for businesses, education, and healthcare in our town,” Church Point Mayor Ryan ‘Spanky’ Meche said in a prepared statement. “LUS Fiber’s work here is a tremendous step forward for our community.”

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LUS Fiber comes to church point celebration

The expansion is part of a series of new broadband deployments that should bring more than one million feet of new fiber options to numerous new Louisiana communities, including Ville Platte, Venice, Mamou, and Basile. Church Point residents are currently able to start scheduling installations via the LUS Fiber website.

The deployments technically began earlier this year, starting with Ville Platte, which data indicates, currently has the fifth-slowest average broadband speeds in the continental U.S.

Like most of America, much of Louisiana is dominated by a handful of regional telecom monopolies that see little competitive incentive to compete on speeds, coverage, prices, or quality customer service.

Survey Shows Rising Broadband Costs, Broad Support For Government Help

A recent U.S. News And World Report survey of U.S. broadband subscribers shows that Americans are increasingly paying more money for broadband access.

The survey also indicates broad public support for the recently defunded Affordable Connectivity Program (ACP), and other government-backed efforts to cap soaring broadband subscription costs.

The organization surveyed 2,500 adults from the country’s five most populous states; 500 broadband subscribers each in California, Texas, Florida, New York, and Pennsylvania.

Not too surprisingly, the survey found that consumers consistently are paying more for broadband than the advertised price, either thanks to steady rate hikes, or the broad use of often sneaky, hidden fees to jack up the advertised cost of service.

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Monopoly Book and Money Stack

Most Americans remain trapped under a monopoly or duopoly for next-generation broadband (broadband defined as faster than 100/20 megabits per second, or Mbps) access. This lack of competition results in high prices, slow speeds, spotty access, substandard customer service, and an increased occurrence of net neutrality, privacy, or other anti-consumer violations.

The survey found the average U.S. subscriber bill at sign up is now $81 – up from the $77 average monthly price seen in the outlet’s April 2024 survey report. But the average broadband subscription cost when the bill actually arrives was now $98 per month; up from $89 just six months earlier. For most, $100 broadband access is right around the corner.

Placerville, California Strikes Gold With New Grant to Build City-Owned Open Access Fiber Network

Placerville, California will soon be a place with a municipally-owned open-access fiber network as the city of 10,000 looks to provide its residents and businesses with local choice and more affordable broadband service.

The years-long effort was launched after frustration with what the city’s 2021 Broadband Master Plan described as the “equivalent of an ISP (Comcast) Monopoly.”

“Because of this,” the plan noted, “residents and businesses in Placerville are exposed to the common limitations of monopolies” – a high-priced reality that prompted 98 percent of city survey respondents to say “yes” to a municipally-owned network.

Now, three years after that report was published – and thanks to a $20.1 million award from the California Public Utilities Commission (CPUC) Last Mile Federal Funding Account (FFA) grant program – a city that was once nicknamed “Hangtown” is now set to cut the noose of the ISP monopoly.

Montgomery County Maryland Recognized For Broadband Equity Efforts

Montgomery County Maryland has been awarded the “Best Municipal or Public Connectivity Program,” honored as a 2024 Broadband Nation Award winner for its ongoing efforts to expand affordable broadband access and help bridge the digital divide.

Montgomery County has worked extensively for years to connect municipal services and key anchor institutions, but more recently has begun leveraging that infrastructure to expand access to the most vulnerable. The county’s efforts have two key components:

FiberNet is a 650-mile municipal fiber communication network that provides broadband services to 558 County, State, municipal, educational, and anchor institutions.

MoCoNet is the County’s residential broadband network that provides free 300/300 megabit per second (Mbps) Internet service for residents at affordable housing locations. Originally providing a symmetrical 100 Mbps service, the network was recently upgraded to 300 Mbps, and is currently available to low-income housing communities.

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Montgomery County cow in field with tall buildings in background

Montgomery Connects Program Director Mitsuko Herrera tells ILSR that the county just received a $10 million grant from the State of Maryland to expand FiberNet and MoCoNet’s free 300 Mbps offering to 1,547 low-income and affordable housing units at seven properties operated by the County’s Housing Opportunities Commission.

The county’s also in the middle of upgrading its core fiber infrastructure to deliver significantly faster overall speeds.  

INCOMPAS Views Broadband As A Highly Concentrated Arena

*In partnership with Broadband Breakfast, we occasionally republish each other's content. The following story by Broadband Breakfast Reporter Jericho Casper was originally published here.

The broadband market is often described as robustly competitive. But some have their doubts.

With the Federal Communications Commission (FCC) preparing a biennial report to Congress assessing competition in communications, some industry stakeholders have voiced concern over the growing dominance of a few major players.

Last Thursday, representatives from INCOMPAS, the trade association for competitive communications companies, met with FCC officials to discuss the forthcoming 2024 Communications Marketplace Report. This report is intended to guide FCC policies that foster competition, innovation, and consumer choice in the industry.

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INCOMPASS President Angie Kronenburg

During the meeting, INCOMPAS President Angie Kronenberg and Attorney Lindsay Stern emphasized the ongoing issue of high market concentration in the fixed broadband internet access service sector, urging the FCC to more closely examine the barriers that stifle competition.

In an August 12 filing at the FCC, INCOMPAS pointed out that the top four broadband providers—Comcast, Charter, AT&T, and Verizon—dominate nearly 80% of the fixed BIAS market, leaving most consumers with only one or two options for broadband service, especially at higher speed tiers.

Brownsville, Texas is Lit and Ready To Launch Into The Future

U.S. News & World Report recently ranked Brownsville, Texas as one of best places to live in the Lone Star State and as one of the most affordable places to retire.

Now – as the border city continues to make progress on an ambitious revitalization initiative – it is adding to its “best, most affordable” resume by transforming the digital landscape with a citywide fiber network to bring fast, reliable, and affordable Internet service to its nearly 200,000 residents.

The effort is being launched on the back of a city-owned middle mile fiber backbone and partnership with Lit Fiber to build out last mile service, operating as Lit Fiber BTX.

“We just lit up our first subscriber and will have 10,000 locations-passed by the end of the year,” Rene Gonzalez, Lit Fiber’s Senior Vice President of Policy and Regulatory Affairs, told ILSR this week.

“Brownsville was a place that had been neglected. But now, SpaceX is here. We are here. It’s exciting.”

The excitement was palpable last week at the BTX Demo Center in downtown Brownsville where city and Lit Fiber officials held a “special community social” to celebrate service getting turned on for the first LIT Fiber BTX subscriber and to showcase what the network will offer city residents and businesses moving forward.

Massachusetts’ Gap Networks Program Awards Verizon $37 million; One Muni Network Gets $750K

State broadband officials in Massachusetts have announced over $45 million in grant awards from the state’s Broadband Infrastructure Gap Networks Program with the lion’s share going to Verizon to “expand high-speed broadband [I]nternet infrastructure to underserved homes, business, and community anchor institutions across the state.”

State broadband officials say the $45.4 million in grant awards will be coupled with $40 million in matching funds from the awardees to expand broadband access to approximately 2,000 locations in 41 Massachusetts communities.

In 2022, as we previously reported here, Massachusetts was allocated a total of $145 million in federal Rescue Plan dollars to fund the Bay State program. With the state’s first round of funding from the Gap Networks Program awarding $45 million to four applicants, about $100 million is left in the pot for future funding rounds. Massachusetts has yet to receive its $147 million share of federal BEAD funds from the bipartisan infrastructure law, the spending rules for which are much more stringent than the more flexible CPF funding rules.

Colorado Passes New Broadband Laws, Takes Aim At Landlord Monopolies

The Colorado legislature has passed several new broadband bills that should aid affordable broadband deployment in the state. According to a state announcement, the new bills do everything from expanding the leeway the state has in spending broadband funding, to providing some tax breaks to providers heavily invested in rural deployment.

Colorado has been a key player in the municipal broadband space, and is home to several major municipal broadband deployments (from Longmont’s Nextlight to Fort Collins’ Connexion) that have been proven inspirational to municipalities across the country.

Several of the new laws should prove helpful to municipal broadband operations and private sector ISPs alike.

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Longmont Nextlight Truck

HB 24-1334, for example, dictates that a multi-dwelling unit (MDU) building owner can’t deny a broadband provider access to the property to install broadband infrastructure. Muni operations in places like Dryden, New York have told ILSR repeatedly that they often face difficulty accessing MDU properties.