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Medina County, Ohio, Celebrates Fiber Network Completion

Community leaders in Medina County, Ohio, recently celebrated the completion of the Medina County Fiber Network (MCFN). Loren Grenson of the Medina Gazette reported on the celebratory breakfast event where officials proclaimed, “The monopoly is dead. Long live the fiber loop."

Local businesses already rave about the county owned MCFN, which offers Internet access, data tranport, and dark fiber leasing. From the article:

Automation Tool and Die in Brunswick is one of 20 entities already tied into the fiber network. The network provides better service to the company’s four buildings in Brunswick’s Northern Industrial Park, said Jacob Mohoric, company IT manager.

“It’s a blazing-fast Internet connection at all four of our buildings at an effective cost,” Mohoric said.

Company co-owner J. Randy Bennett said the network provided the first decent bandwidth for his company since it moved to Brunswick in 1983.

“We had no good bandwidth source and we paid through the nose for what we did have,” Bennett said.

Last July, the Highland School District was near the end of an expensive contract with Time Warner Cable. The network was not complete, but enough MCFN infrastructure was in place to connect the schools for Internet and phone service. Highland Schools now pay about $82,000 less per year for connectivity.

Community leaders began working on the project over ten years ago. After years of planning, the Medina County Port Authority (MCPA) secured $14.4 million in bonds and a $1.4 million stimulus award. The stimulus funding is part of a 2010 grant to nonprofit OneCommunity, charged with extending fiber to 22 Ohio counties. OneCommunity will manage the network.

The 151-mile asset belongs to the MCPA but the entire community considers itself an "owner." Bethany Dentler, executive director of the Medina County Economic Development Corp., also spoke at the celebration:

Dentler said the 151 miles of line through Medina County are a source of pride for the community and a unique collaborative investment in infrastructure.

“The best part is that this network belongs to all of us,” she said. “Not just the Medina Port Authority, not just the Medina County Economic Development Corp., but it’s a publicly owned network that belongs to the entire Medina community.”

Op-Ed: NC In Bottom of Broadband Barrel

Common Cause's Todd O'Boyle and myself have just published an opinion piece in the North Carolina News & Observer to highlight the foolishness of the General Assembly revoking local authority to build broadband networks.

Todd and I teamed up for a case study of North Carolina's most impressive fiber network, Greenlight, owned by the city of Wilson and then turned our attention to how Time Warner Cable turned around to lobby the state to take that right away from communities. That report, The Empire Lobbies Back, was released earlier this month.

An excerpt from our Op-Ed:

The Tar Heel economy is continuing its transition from tobacco and textiles to high technology. Internet startups populate the Research Triangle, and Charlotte’s financial services economy depends on high-quality data connections. Truly, next-generation Internet connections are crucial to the state.

It is deeply disturbing that the Federal Communications Commission ranks North Carolina at the bottom nationally – tied with Mississippi – in the percentage of households subscribing to a “basic broadband” connection. The residents and businesses of nearly every other state have superior connections.

Read the whole thing here.

Susan Crawford on Bloomberg TV

Six minute interview from Susan talking about the failure of policy in America to expand access to fast, affordable, and reliable networks.

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

Publication Date: 
January 3, 2013
Author(s): 
Todd O'Boyle, Common Cause
Author(s): 
Christopher Mitchell, Institute for Local Self-Reliance

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.

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.

Wilson's Greenlight Leads North Carolina in Fast Internet

Publication Date: 
December 5, 2012
Author(s): 
Todd O'Boyle, Common Cause
Author(s): 
Christopher Mitchell, Institute for Local Self-Reliance

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. The second will be published shortly and will feature a discussion of how Time Warner Cable reacted, pushing legislation through the General Assembly to block other communities from copying Wilson's success.

New Fact Sheet: Community Broadband and Public Savings

We have already published a fact sheet on the critical role community broadband plays in job development. Now, ILSR presents a collection of how commnity owned broadband networks save money for local government, schools, and libraries while providing cutting edge services. The Public Savings Fact Sheet is now available.

Though schools, libraries, and other community anchors need access to faster, more reliable networks, the big cable and telephone companies have priced those services so high that they are breaking the budget. But when communities create their own connections, affordable high capacity connections are only one of the benefits. A community owned network offers the promise of self-determination -- of upgrades on the community's time table and increased reliability for emergency responders.

The Public Savings Fact Sheet is a great piece to share to mobilize other members of your community. Share it with decision makers and use it to start meaningful conversations. Distribute it widely and often.

We are always developing new resources. If you have an idea for a new fact sheet, we want to hear it.

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 new marketing plan, dubbed "Straight Talk," will appeal to local ownership and include slogans like "If you owned a grocery store, wouldn't you shop there?" "Can you create jobs just by watching TV?" and "When your boss is everyone in town, your customer service had better be good." It will be interesting to see whether or not the appeal to community spirit helps increase subscribership.

North Carolina law is especially hostile to community owned networks and MI-Connection has struggled financially, in large part due to how poorly Adelphia (a private company) had maintained essential components. Competitive attacks from Time Warner Cable have aggravated the situation. StopTheCap reported in April that, in a rare instance of private overbuilding, the cable giant has begun serving the area and appears to be making a competitive grab for MI-Connections customers.

Stop the Cap

The situation has been difficult for MI-Connection but great for all consumers in the region. From the Stop The Cap article:

Other residents in nearby Cornelius are also getting prices substantially lower than residents in cities like Charlotte, where many residents have one choice for cable: Time Warner. 

Sam, a Stop the Cap! reader in the Morrison Plantation neighborhood, noted they skipped the last few rate increases from the cable company.

“You just call and tell them the rate is too high and as soon as they find out you have MI-Connection as an alternative, they lower the price,” he said. “My niece in Charlotte can’t get the same deal even when we gave her the details — it’s only good in areas where MI-Connection operates.”

That leaves Charlotte residents paying $35-50 more a month than savvy customers further north can have for the asking.

Once again we find that competition improves affordability, even in a state with some of the toughest restrictions.

Sam, quoted in the StopTheCap article makes an astute observation about the cable company's agenda:

“It seems pretty clear to me that Time Warner isn’t hurrying to compete with Comcast or Charter — just MI-Connection and that makes me suspicious,” Sam says. “After spending all that money to ban community broadband in the state, they now seem to be trying to drive out of business the handful of companies that were exempted.”

“My niece is probably paying for this right now on her cable bill too, and once MI-Connection is out of the way, those prices will shoot right back up,” Sam concludes.

Google Creates Competition in Kansas City, TWC Hires 81 People

A Business Journal story yesterday reveals that Time Warner Cable is adding 81 jobs in Kansas City, an increase of 9% over its present area workforce:

The company, which currently employs about 900 locally, wants to fill customer service, finance, sales and other positions.

These are the jobs that result from competition - which does not exist when the providers a limited to a complacent duopoly comprised of a single cable company and a single telephone company. This is one of the way that community networks create jobs.

Community Networks create traditional jobs to offer their own services (and a multiplier effect by using local accounting, local marketing, and other services). But they also create more revenue for local papers (advertising) and job opportunities with rival companies that suddenly need to fight for subscribers.

On a different track, Light Reading says it has a copy of Google's franchise with the city and notes that Google is under no obligation to serve everyone in the city. However, Karl Bode rightly notes that it was the state legislature in Kansas, flush with AT&T campaign contributions, that revoked the authority of local governments to require cable providers to serve everyone.

Presently, 14 "fiberhoods" in Kansas and 49 in Missouri have met the registration goals and will be among the first served. Google will build to any fiberhood that meets the minimum threshold of interest.

One cannot blame Google then for only building where they will profit. In fact, this is what one would expect any rational profit-maximizing company to do. It is a failure of governance to require that everyone have access to an essential infrastructure. And we know what causes these failures of governance - systematic legalized bribery in our campaign finance system.

Light Reading does note that the franchise is far more generous to Google than overbuilders can typically negotiate. This is a result of Google offering such a unique product. Local leaders decided to effectively subsidize Google's network with favorable terms in the right-of-way, including making inspections as quick and painless as possible. Someone has to pay for these costs, and we expect it will be local taxpayers. Such a cost may or may not be "fair" to taxpayers, we leave it to them to decide. However, we believe the taxpayers should have some measure of control over any infrastructure that is built with their money.

As we have said before, we watch Kansas City with interest and hope Google succeeds (anything else would be incorrectly used to justify our pathetic status quo in broadband). But we believe the communities that build their own networks will do much better in the long term.

Correction: We originally reported 91 jobs, not 81.

How AT&T and Time Warner Cable Pass Anti-Competition Broadband Bills

In keeping with our coverage of states that revoke local authority to prevent AT&T, Time Warner Cable, and the like from having to deal with any actual competition, we want to highlight the video below that explains how a modern bill becomes a law.

It ain't like it used to be and it doesn't have to be like this. North Carolina's anti-competition bill came only after years of campaign contributions and heavy lobbying. We discussed the history of that bill with Catharine Rice as well as the recent reprehensible South Carolina law.

Video: 
See video