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AT&T Fails Big in Dallas, Makes Big Claims for Austin

Even though I regularly read examples of terrible customer service from the massive corporations like AT&T, Time Warner Cable, CenturyLink, and more, I apparently retain the capacity to be surprised as how bad they are. The Dallas Morning News recently ran this piece: "AT&T Never Misses An Opportunity to Miss An Opportunity."

In a neighborhood with poor access to satellite services and miserable with Time Warner Cable, people were thrilled when AT&T proclaimed it would be investing in U-Verse. Even though U-Verse is an amped-up DSL service that barely competes with cable connections, people who are fed up with Time Warner Cable were excited for a choice.

Lo and behold, right in the thick of the CBS-Time Warner fight, I received notices from AT&T that Uverse was now available in my neighborhood. This is something I’ve waited more than two years for. I was thrilled. Finally, there’s choice! Since receiving my first notice from AT&T in early August, I’ve been inundated with AT&T offers. Dozens of pieces of mail have arrived in my mailbox. Clearly, AT&T wanted my business.

And I wanted badly to give it to them. I phoned one day after receiving my first notice. I signed up immediately for service. The friendly sales person told me because of high demand, she couldn’t set an installation date for sooner than two weeks. Whatever. Fine. We agreed on August 19, somewhere between 9 and 11 a.m. I couldn’t wait.

Only they didn't show. They cancelled. And they cancelled the next appointment and put him off time and time again. But now he has a date of when he will be able to take service ... and I'm not making this up. 12/31/2036.

Those familiar with AT&T's announcement in Austin may think that it will take 23 years to upgrade Dallas because the massive corporation is focusing so much attention on Austin where they are kind of promising a gig.

Karl Bode has long been covering what he calls Fiber to the Press Release from AT&T.

The company has made it repeatedly clear that they aren't interested in investing a huge amount of money in fixed-line networks when the real money is in wireless and $15 per gigabyte LTE overages. While the company has made much of "Project VIP" network investment project, their investment numbers for that project have been a lot of smoke, mirrors and very fuzzy math.

However, local folks tell me that AT&T is indeed pulling permits and doing something differently - so this is not entirely smoke and mirrors. Just mostly.

And over at Stop the Cap, Phil Dampier has a deeper dive into AT&T's pool of obfuscation:

The five-county Austin–Round Rock metropolitan area has a population of 1,834,303 residents. Assuming AT&T managed to offer fiber service to 100,000 residents — and that is a generous figure, that represents only 5.5% of Greater Austin. The old U-verse is still a work in progress in several Texas cities, so it could take years for AT&T to deploy fiber in Austin. Expect AT&T to start with the low-hanging fruit — multi-dwelling units such as apartments, condos, and other similar buildings, some that already have existing fiber connections in place.

We still have no idea what AT&T is going to charge for its "Gig" ... which will start at 300 Mbps. Don't count on AT&T to suddenly invest in FTTH in your town - much better to take action however you can to solve your problems locally.

Chattanooga Cements Status as Best Network in the Nation

Chattanooga's EPB Fiber, a municipal FTTH system owned by the city's electric power board, has dramatically lowered its prices for the gigabit connection and increased all Internet speed tiers.

The slowest connection you can get from EPB Fiber is 100 Mbps symmetrical - and it comes at the same price that most cable tiers start at for much slower connections - $58/month. Want a gig? That is now $70/month. Here is the announcement:



Video streaming by Ustream

The Washington Post covered the story, including several quotes from me.

DePriest tells me that EPB's fiber network is "a great profit center." In the four years the service has been active, the utility company has increased its mid-tier speeds three times — from 15 Mbps to 30 Mbps, from 30 Mbps to 50 Mbps and now from 50 Mbps to 100 Mbps. About 2,500 elite users will enjoy 1-gig speeds by the beginning of October.

Phil Dampier has more coverage at StoptheCap.com, including an analysis of AT&T and Comcast competition.

AT&T charges $65 a month for 24/3Mbps service — its fastest — with a 250GB monthly usage cap, currently not enforced. For $5 more, EPB customers get 1,000/1,000Mbps with no usage limits or overlimit fees.

A recent article in the Chattanoogan noted that Chattanooga had surpassed 50,000 subscribers and was on path to surpass Comcast in subscriber base locally.

Mr. DePriest said Comcast had some 122,000 customers on the EPB grid when EPB launched its rival program. He said Comcast is down to around 75,000 and will likely drop to around 60,000 next year.

Cox Discourages Internet Use That Competes with Core Cable Product

Another story of frustration as cable companies try to discourage Internet use on their last generation networks.

An article earlier this month in StopTheCap! tells the story of the John Heeley family, long time Cox customers and avid Netflix fans. The Heeley's received a letter from Cox warning them about their "excessive Internet usage." They were more than a little annoyed, considering they fork over $2,400 a year to the cable giant provider so called to express their displeasure:

Heeley’s fiancé Shelley was angry after realizing just how much the couple already spends with Cox.

“I called them on the phone and the first thing they want to do is get you to upgrade and spend even more money with them,” she tells Stop the Cap! “They tried to vaguely threaten our service if we continued to ‘overuse the Internet’ and suggested we cut back or cancel Netflix which they think is the reason we went over the limit.”

Shelley says she was born at night, but not last night.

“How convenient they want you to stop using Netflix, Amazon, or other online video services that their cable TV competes with,” Shelley says. “It is unfair competition.”

Shelley requested a Cox supervisor and threatened the company right back, telling Cox if they sent one more letter like that, the Heeley family would take their business elsewhere.

“He told us quietly we could ignore the letter and any future letters and they will add a note on our account,” Shelley tells us. “He confided they have customers going over the limit all the time and the letter is really about educating customers about usage.”

AT&T, Others Overcharge Subscribers Based on Secret Bandwidth Meters

Imagine going to a gas station, putting 10 gallons into your car's 12 gallon tank, and driving off only to find your needle only approaches half a tank? This scenario is quite rare because government inspects gas stations to ensure they are not lying about how much gasoline they dispense.

But when it comes to the Internet, we have found measurements of how much data one uses is unregulated, providing no check on massive companies like AT&T and Time Warner Cable. And we are seeing the results -- AT&T is not open about what its limits are or how to tell when one has exceeded them.

Stop The Cap has noted that AT&T has advertised unlimited bandwidth for its DSL/ U-verse product while chiding and charging customers who exceeded certain amounts of monthly usage. Customers were quietly warned and charged $10 for each additional 50 GB over 150 GB for DSL subscribers or 250 GB for U-verse customers.  Clearly, "unlimited" has several definitions, depending on whether one is a customer or an ISP.

Complaints have also come in from SuddenLink customers and others. The ISP charged usage based customers for bandwidth usage when they didn't even have power. Simlarly, AT&T customers began to complain about inaccurate meters from the beginning of the program. This from a 2011 DSL Reports story - one of many comments from AT&T customers:

AT&T's data appears to be wholely corrupted. Some days, AT&T will under-report my data usage by as much as 91%. (They said I used 92 meg, my firewall says I used 1.1 Gigs.) Some days, AT&T will over-report my data usage by as much as 4700%. (They said I used 3.8 Gig, dd-wrt says I used 80 meg. And no, this day wasn't anywhere near the day they under-reported.)

Most of us don't keep track of our bandwidth usage, because there is no easy way to do it. For the most part, we have to take the word of our Internet service providers, but who is ensuring that they are accurate? Mismeasuring could be the result of incompetence or fraud, but the FCC has not stepped up to ensure consumers get what they are promised.

DSL Reports has extensively covered this AT&T bandwidth cap story and its refusal to open its meters to verification. One customer recorded a persistent pattern of inaccuracuracies, finding that AT&T was over recording the households daily usage by about 20-30%. The user contacted AT&T support to get a definition of "metered usage" because there was no definition on its website. From the article (and reposted from Slashdot):

Boy, did I get a surprise. After several calls, they finally told me they consider the methodology by which they calculate bandwidth usage to be proprietary. Yes, you read that right; it's a secret. They left me with the option to contact their executive offices via snail mail.

As long as there is no meaningful competition for broadband customers, AT&T will face no market penalty for abusing its customers. And unfortunately, the FCC has been asleep at this wheel as well. Also from Karl at DSLReports:

Worse perhaps, is that regulators in both the United States and Canada haven't shown the slightest interest in the problem despite the fact that ISPs are billing like utilities, with nobody but the consumer confirming whether their meters are accurate.

We have yet to hear of a credible reason to need bandwidth meters on wired networks. The companies that have invested in modern networks -- from community fiber to Verizon's FiOS -- see no need to count bits. It only seems to be those who don't want to invest and cable companies that want to slow the growth of over-the-top video pushing these limits.

Georgia Bill to Kill Community Broadband Reportedly Shelved

We are hearing that SB 313 in Georgia, AT&T's bill to overrule local authority, will be turned into a study bill. Despite the strong support of the Senate Majority Leader, the bill lost support after we and others exposed the frank admission of AT&T's CEO that they had no plans to expand broadband in rural areas.

Given the strength of AT&T's lobbying and the support of the Senate Majority Leader, this is a tremendous victory. Congratulations to the communities in Georgia that successfully organized and defended their authority to decide locally if a network is a wise choice for them.

We do not consider these issues resolved until the ink is dried, but it does look like AT&T lost this round -- which means thousands of local businesses and millions of people won. They can still hope for next-generation networks and a real choice in providers.

Note: the South Carolina bill remains in play and will be discussed on Wednesday by a Senate Judiciary Subcommittee.

We have been collecting some of the news coverage of this broadband debate in Georgia, but have neglected posting until now. Here is a run-down of some of the coverage.

In the beginning of February, the AP covered an SB 313 hearing featuring testimony from rural communities:

Leaders from cities including Elberton, Hogansville, Thomasville, Monroe and Toccoa lined up to tell senators that broadband is necessary infrastructure for the 21st century economic development they hope to attract — and that they are doing what they must to keep their communities competitive.

"We cannot wait for the private sector to ride to our rescue," said Tim Martin, executive director of the Toccoa-Stephens County Development Authority.

Thomasville Mayor Max Beverly said the city's broadband network supports major employers there.

"If we have to cut them off, there's no telling what that's going to do to our local economy," he warned.

The Augusta Chronicle devoted a lot of words to both sides and made the important disclosure that telecom companies had just staffed up on lobbyists:

The telecom companies have beefed up their lobbying forces this legislative session. Many lawmakers have received campaign contributions from them, including Rogers, who rejects any suggestion that they might have motivated him.

Stop the Cap!

Stop the Cap! has continued its in-depth coverage of these important issues. In January, Phillip revealed the sudden increase in telco/cableco contributions to the bill's pusher, most notably from AT&T. He also set the record straight on many of the supposed failures of muni networks in Georgia. For example:

As Multichannel News reported in 2002, “the Atlanta suburb of Acworth, Ga., isn’t selling because business is bad. Rather, officials said they’ve received so many requests for service from outside the city limits that they’ve decided to sell the operation to an independent company that may expand beyond Acworth’s borders.”

That is where the trouble started. The city contracted with United Telesystems Inc. of Savannah, Ga., a private company, first to lease and then eventually buy the cable system, maintaining and expanding it along the way. But in 2003, United Telesystems defaulted on its lease-sale agreement, forcing the city to foreclose on the system and ultimately sell it to a second company.

Acworth’s “failure” wasn’t actually the city’s, it was the private company that defaulted on its contract.

On February 1, Phillip discussed the Columbia County Broadband Network:

If Rogers’ bill passes, the county may have to go back to begging for access from the companies that have repeatedly said it wasn’t worth the investment or their time.

County officials have been more generous, offering all along to share access to the fiber network with the very providers who are seeking to destroy it. So far, that hasn’t changed any minds.

“If we don’t own it, that means we don’t want you to have it” is standard operating procedure for the state’s phone and cable operators, even in the service areas they routinely ignore, even if it means flushing millions of dollars already spent on new networks down the drain.

On February 7, Stop the Cap! covered more of the testimony from towns against the bill:

seal-newnan-ga.png

“We started our cable system not on a whim but on a demand from our citizens to provide a higher level of service for cable TV and Internet,” said Newnan Mayor Keith Brady. “We got into the cable business originally to provide fiber optics and broadband because Charter Communications would simply not invest in our community.”

...

Brady says their community-owned system not only provides broadband where Charter would not, the cable company also was forced to reduce their rates for consumers in nearby communities, saving taxpayers across the entire city and county millions.

In Elberton, the lack of broadband was so pervasive the 4,700 local residents demanded the city provide the service themselves. Commercial providers had stonewalled the county seat of Elbert County for years until the city broke ground on a broadband project in 2001.

...

Don Cope, president and CEO of Dalton Utilities, demonstrated that municipal broadband systems are not the financial risk large telecommunications companies always claim they represent. In fact, Dalton’s system has never received a penny of tax revenue and its accounting is open to public scrutiny to prove it.

Cope noted SB 313 imposes restrictions on community providers, but completely exempts those owned by the companies pushing the bill.

OptiLink Dalton

“I would ask that you look at the private providers in the state,” Cope said. “Look at their reports, and you would see how many dollars that are provided to them from the federal government. We are talking about in the billions of dollars. All the [private telecommunications entities] that I know about have some form of government support.”

CivSource also offered an opinion about the bill:

“The private sector is handling this exceptionally well,” Rogers said in an Associated Press account. “What they don’t need is for a governmental entity to come in and compete with them where these types of services already exist. We’re not outlawing a local government entity from doing this, but if they’re going to compete, they can play by the same rules and ask the voters if it’s okay before they go out and spend all these dollars.”

Rogers claims are dubious at best. According to the National Broadband Map, Georgia ranks 20th in the nation for broadband access. According to the forward of a report by Rich Calhoun, Program Director of the Georgia Technology Initiative, “As I traveled through the state to talk with leaders in municipalities, counties and community anchor institutions, I found that many places throughout Georgia indicated that they did not have access to affordable or sufficient broadband services. Telecommunications firms who have made significant investments in Georgia indicated that in some areas of the state the return on investment would not qualify for further investment at the present time.”

Media Coverage Roundup: Georgia AT&T Bill to Kill Community Broadband

In the wake of a bill in Georgia to revoke local authority and substitute it with state say-so over whether a community can build a broadband network, multiple outlets have covered the situation.

As usual, Stop the Cap! was quick on the ball, offering original in-depth commentary. Phil digs into the campaign cash history to find the real motivations behind this bill:

Rogers’ legislation is exceptionally friendly to the state’s incumbent phone and cable companies, and they have returned the favor with a sudden interest in financing Rogers’ 2012 re-election bid. In the last quarter alone, Georgia’s largest cable and phone companies have sent some big thank-you checks to the senator’s campaign:

  • Cable Television Association of Georgia ($500)
  • Verizon ($500)
  • Charter Communications ($500)
  • Comcast ($1,000)
  • AT&T ($1,500)

A review of the senator’s earlier campaign contributions showed no interest among large telecommunications companies operating in Georgia. That all changed, however, when the senator announced he was getting into the community broadband over-regulation business.

Phil also refutes the supposed failures cited by those pushing the bill. Not only do such stories misrepresent what really happened, some actually cite EPB's incredible 1Gbps service as demonstrating that munis are out of touch. What else would you expect from the Heartland Institute, which made its name fighting against the radical claim that cigarettes are linked to cancer?

Government Technology's Brian Heaton also covered the story in "Georgia Community Broaband in Legislative Crosshairs."

In addition, Mitchell [me] said that SB 313’s requirement of the public entity paying the same taxes or the same cost of capital as the private sector is another red herring. He said that while the provision looks reasonable on the surface, it would critically hamstring any effort to establish government-owned high-speed broadband services.

“That’s like telling me I have to pay the same taxes that another American would,” Mitchell said. “Are we talking about my middle-class neighbor, or Mitt Romney? Whose taxes am I going to pay a similar rate to? These are all issues that are left open-ended intentionally so that it’s uncertain for a community and they are more likely to end up in court, which is possibly the most devastating situation.”

Fierce Telecom riffed on the GovTech story here.

Karl Bode at DSL Reports asks if "Georgia wants to be a broadband backwater."

As noted, ISPs particularly love bills that require endless public hearings and votes, where deep-pocketed carriers can can out spend supporters by millions of dollars on (often incredibly sleazy) PR campaigns aimed at shouting these services down. That same money could be used to upgrade last mile connectivity, but isn't thanks to the uncompetitive markets these companies are trying to keep uncompetitive. The result? Continued slow speeds, high prices and poor service, all protected by the very government ISPs claim they don't want involved in the market.

And finally, Slashdot got the point of the bill wrong (ignoring many of the provisions of the bill) but did start a conversation about Georgia "Prohibiting Subsidies for Municipal Broadband. One of the commenters lives just outside one of the towns that Majority Leader Rogers cited as a bad example. This commenter disagrees with that assesment. Strongly.

Until the city implemented a broadband plan with cable TV, we had ONE choice for cable TV and virtually NO high speed internet especially in the county (Bellsouth/AT&T DSL is a massive joke to anyone who lived in the county and so was high speed internet connections). Suddenly, when the city decided "We want to attract more business to the area and also supply all of our schools with high speed internet services..." then WHOA! the local cable company went into overdrive. They started expanding their high speed internet services much faster and pushed them out into the county. They offered better bundle rates AND dropped their cost for cable TV alone. The move by the city _incentivized_ the local cable MONOPOLY to get off their ass and start offering the services to both city and county that they had been promising for a while and to bring their price down to a more competitive level.

And finally, the Augusta Chronicle covered the proposed bill and the increased campaign contributions from telco and cable companies to those pushing the bill:

The telecom companies have beefed up their lobbying forces this legislative session. Many lawmakers have received campaign contributions from them, including Rogers, who rejects any suggestion that they might have motivated him.

Unfortunately, the Augusta Chronicle again repeats the false claim that the public will be under the same rules as the private sector. The bill explicitly creates new rules that will only apply to public sector providers. It is right in front of them and they print blatantly false claims.

AT&T Fights Broadband Stimulus by Proxy

Phillip Dampier at Stop the Cap! has once again followed the money trail to reveal AT&T pulling puppet strings to attack broadband stimulus funds. More significantly, AT&T is trying to de-legitimize the provision of access to the Internet by any aside from the few big DSL and cable companies that have essentially cornered the market.

AT&T funds groups like Navigant that create misleading research and reports that they then use to confuse the media to spread messages that benefit AT&T.

Navigant spent much of 2011 trying to convince regulators and the public that T-Mobile actually doesn’t compete with AT&T, so there should be no problem letting the two companies merge. Readers win no prizes guessing who paid for that stunner of a conclusion. Thankfully, the Department of Justice quickly dismissed that notion as a whole lot of hooey.

Navigant’s second ludicrous conclusion is that there is no rural broadband availability problem. Navigant has a love affair with slow speed, spotty DSL (sold by AT&T) and heavily-capped 3G wireless (also sold by AT&T) as the Frankincense and Myrrh of rural Internet life. With those, you don’t need any broadband expansion (particularly from a third party interloper).

Thanks to Phil for taking the time to reveal these strategies.

New Year, Same Lame Cable and DSL Monopolies

It's a new year, but most of us are still stuck with the same old DSL and cable monopolies. Though many communities have built their own networks to create competition and numerous other benefits, nearly half of the 50 states have enacted legislation to make it harder for communities to build their own networks.

Fortunately, this practice has increasingly come under scrutiny. Unfortunately, we expect to see massive cable and telephone corporations use their unrivaled lobbying power to pass more laws in 2012 like the North Carolina law pushed by Time Warner Cable to essentially stop new community broadband networks.

The FCC's National Broadband Plan calls for all local governments to be free of state barriers (created by big cable and phone companies trying to limit competition). Recommendation 8.19: Congress should make clear that Tribal, state, regional and local governments can build broadband networks.

But modern day railroad barons like Time Warner Cable, AT&T, etc., have a stranglehold on a Congress that depends on their campaign contributions and a national capital built on the lobbying largesse of dominant industries that want to throttle any threats to their businesses. (Hat tip to the Rootstrikers that are trying to fix that mess.)

We occasionally put together a list of notable achievements of these few companies that dominate access to the Internet across the United States. The last one is available here.

FCC Logo

As you read this, remember that the FCC's National Broadband Plan largely places the future of Internet access in the hands of these corporations. On the few occasions the FCC tries to defend the public from their schemes to rip-off broadband subscribers, Republicans (joined by a number of Democrats) threaten to overrule what is supposed to be an independent agency to defend the corporations that just happen to be donors to their campaigns.

Back when most assumed AT&T would be able to push its horribly anti-competitive takeover with T-Mobile through an impotent federal government, a few stories exposed the tip of the iceberg of AT&T's astroturf efforts, as with this report from the Center for Public Integrity:

“It is important that we, as Christians, never stop working on behalf of the underserved and forgotten,” the Rev. R. Henry Martin, director of the clinic, wrote to FCC Chairman Julius Genachowski in June. “It might seem like an out-of-place endorsement, but I am writing today in order to convey our support for the AT&T/T-Mobile merger.”

...

Not included in Martin’s letter to the FCC was the fact that his organization had received a $50,000 donation from AT&T just five months earlier. Indeed the Shreveport-Bossier Mission is one of at least two-dozen charities that were recipients of AT&T’s largesse and have written in support of the T-Mobile buyout, which will cut the number of national wireless companies from four to three.

When AT&T's wasn't able to buy enough influence with legitimate groups willing to sell out the interests of their members (who would pay more for their communications in a less competitive environment), it would simply create its own groups to push its interests:

AT&T Logo

Tallahassee Mayor John Marks brought an Atlanta nonprofit to the city as a partner in a $1.6-million federal-grant project, saying it would put high-speed Internet into the hands of poor people.

What he didn't say, and now says he didn't know, was that the Alliance for Digital Equality (ADE), in its first three years of existence, was nearly 100-percent funded by AT&T and spent most of its money — four of every five dollars — to pay board members, consultants, lawyers and media companies to push the global communication giant's positions on Internet and wireless regulation. Nor did Marks disclose, initially, that ADE had paid him $86,000 over several years as a member of its board of advisers.

We continue to see these massive companies abuse their market power to increase their prices, knowing that their lobbying arms will continue pushing legislation to stop communities from building their own networks.
Time Warner Cable hiked its rates in North Carolina immediately after passing its legislation to stop communities from building networks. Mediacom raised its prices while it attempts to sabotage efforts in rural Minnesota to build networks in unserved areas. And invented new fees to rip off its subscribers while trying to disrupt a rural fiber-to-the-farm initiative that slightly overlapped some territory in which they have long refused to invest.

Even as profits on cable broadband services approach Exxon proportions, Time Warner Cable has pushed for usage-based pricing to further overcharge subscribers, but mostly to strangle enormously popular competitors like Netflix. CenturyLink is not far behind, with usage caps prioritizing its own video content over competitors.

Verizon Wireless tried to sneak a new fee past subscribers by announcing it just before Christmas but backed down after outraged consumers reacted. One has to wonder whether it would have backed down in a world where AT&T took over T-Mobile, resulting in 3 out of 4 wireless customers being with Verizon Wireless and AT&T. Four competitors isn't the robust competition envisioned by Adam Smith, but it still beats the duopoly dynamic that results from even less competition.

Verizon Logo

Speaking of less competition, the recent deal between Verizon and cable companies is troubling. We already knew that FiOS was all but dead, but this deal truly puts a fork in it:

I'll assume that neither cable operators or Verizon are going to let us see the deal fine print to confirm the Times guess, but the logic fits Verizon's strategy. Verizon already cherry picked the most valuable FTTH upgrade markets, and has shown total disinterest in further upgrades. This deal allows them to save money on FTTH upgrade costs, instead soaking up remaining customers with LTE -- which we noted was the plan some time ago. This deal is very bad news to the rural telcos without the cash for large-scale upgrades (CenturyLink, Frontier, Fairpoint, two of which Verizon sold aging DSL networks to), and for satellite broadband providers.

The future of next-generation networks is now only community networks, cooperatives, and some small private networks.

We've long argued that phone and cable companies have systematically overstated their coverage in mapping efforts as part of their effort to blunt any sensible public policy that would result in all Americans having a choice between fast, affordable, and reliable connections to the Internet. The New England disaster called FairPoint is back in the news for overstating the number of subscribers that have access to DSL. The company has not met the requirements it agreed to when purchasing Verizon's lines a few years ago.

Comcast Logo

And in the continuing saga of Comcast's growing domination over the information people can access, Bloomberg TV is fighting Comcast's practice of discriminating against channels in which it has no ownership stake. Comcast has long strongly encouraged those who want to put television channels on its lineup to give Comcast a piece of the action, not unlike a mobster encouraging a small business to pay protection money. It wants to continue expanding its role as a gatekeeper to the Internet, particularly in the many areas where people have no real choice from other high speed providers.

And perhaps the best example of why we should not trust these massive corporations to run essential infrastructure is the revelation that AT&T defunded 9-11 call centers in Tennessee to gain a market advantage over competitors, a practice they were previously caught doing, leading to settlements out of court.

These corporations are not evil, they are following a sensible mandate to maximize their shareholder value. It is our government that is not sensible -- entrusting them with the future of Internet access without even bothering to enact the most basic regulations. Communities must continue to wise up and ensure they have the access they need to modern communications -- access that reponds to their needs, not those of distant shareholders.

Salisbury's Neighbors to State Legislature: Don't Kill Our Fibrant Dreams

Time Warner Cable's bill to kill competition by limiting the right of communities to build their own broadband networks will have a committee hearing this week in North Carolina's Senate. Stop the Cap! has details in its action alert -- we encourage people to continue contacting their Senators as well as contacting local officials and telling them to contact Senators.

We have seen some interesting news coming out of North Carolina recently, including Salisbury connecting its 500th customer to its publicly owned Fibrant network [pdf]. Additionally, some nine nearby communities have told Raleigh they want to preserve their right to be served by Fibrant (the bill would greatly limit the territory in which Fibrant can expand, unlike private companies which have the freedom to expand across the state). The story starts with a church in one of the communities, Faith:

Mahoney said his church, Faith Baptist, would like faster Internet speeds but can’t afford the $20,000 Time Warner Cable would charge to build a business-class circuit for the church.

Church members are not satisfied with DSL service from Windstream, Mahoney said. But it’s their only option since they can’t afford Time Warner’s price tag, he said.

If Salisbury extends Fibrant to Faith, the church would have another choice for high-speed Internet, said Mahoney, who owns Rowan Onsite Computer Solutions in downtown Salisbury and has Fibrant.

This bill, inaptly named "Level Playing Field" creates new restrictions for publicly owned networks like Fibrant, which under current law can offer services to any community requesting them.

Stop the Cap

Stop the Cap supplemented this article with more information from a local resident:

“Isn’t it simply amazing that Fibrant is being bashed as a failure-waiting-to-happen by the sponsors of this bill while mayors across two counties are absolutely clamoring to get the service to their residents,” said Stop the Cap! reader Andy Brown who lives near Landis. “How can Marilyn Avila and Tom Apodaca have the slightest bit of credibility on this issue when you see town leaders literally falling all over each coveting a service that these legislative-Friends-of-Time-Warner-Cable have predicted is a certain failure?”

“I want Fibrant in Landis myself, if only for the competition,” Andy shares. “You know, the kind of competition legislators are supposed to support.”

A new bill has been introduced in the Senate to more heavily regulate community networks but in a less heavy handed manner than H129. This bill would totally exempt the existing networks, as opposed to H129 where the sponsors have consistently lied about how it impacts existing networks.

Salisbury, Wilson, Morganton, Mooresville and Davidson argue it’s not fair for the state to change the rules after they borrowed millions of dollars to legally build or buy broadband networks.

“The state approved our debt and Salisbury’s debt,” Shows said. “To retroactively go back and change that is simply unfair. Municipal broadband operations must be run like a business, and like a business, either they’re growing or dying.”

Chapel Hill LogoChapel Hill has joined the list of communities showing concern about how H129 will damage their long term plan to build the essential infrastructure for their digital future.

The town is trimming trees to make way for fiber optic cable, primarily so it can be used for traffic signals. The town plans for the cable to eventually connect town buildings and the wider community with high speed Internet.

But with the possibility of the broadband bill passing, Kleinschmidt said the cable might not be used to its full potential.

“The worst case scenario is that the fiber optic cable will only be used for our traffic signal and its full use will never be tapped,” he said. “The best case scenario is also using it for municipal services too, but even that could be at risk.”

Chapel Hill has been opportunistically adding fiber assets as opportunities arise and having a discussion about whether it wants to create a town-wide publicly owned network. This bill will take that decision out of their hands -- a bunch of politicians in Raleigh will decide for them, after taking a ton of campaign donations from Time Warner Cable and other incumbent telecom companies.

For those who are curious, Chapel Hill is currently doing what a number of other communities have done, adding fiber-optic connections to run traffic signals. As long as the fiber is going in, they might as well get more use out of it and are planning to leverage it over time… if the Legislature doesn't tell them to but out of TWC's exclusive club.

The Broadband Jungle of Marketing, Hype, and Lies in Volusia, Florida

I have little to add to the excellent work done by Stop the Cap! calling out Bright House for their many misleading and false claims, some of which came up in a story about the Daytona Regional Chamber of Commerce pushing Volusia County to investigate an investment in fiber-optics to help local businesses.

Of course Bright House said it would be unnecessary because they already offer everything anyone could ever want from a broadband connection. Absurd.

Karl Bode also weighed in - this is a good example of the misleading claims communities can expect when they start investigating broadband -- particularly if they may do anything to threaten the cable/phone duopoly that has so underinvested in broadband across the U.S.