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Long List of Public Interest Groups Sign on to Free Press Letter Opposing Comcast Time Warner Cable Merger

The Free Press announced that more than 50 public interest groups, including the Institute for Local Self-Reliance, signed on to its letter in opposition to the Time Warner/Comcast merger.

The letter, addressed and delivered to Attorney General Eric Holder and FCC Chairman Tom Wheeler, begins:

The proposed Comcast-Time Warner Cable merger would give one company enormous power over our nation’s media and communications infrastructure. This massive consolidation would position Comcast as our communications gatekeeper, giving it the power to dictate the future of numerous industries across the Internet, television and telecommunications landscape.

In the press release, Craig Aaron, President and CEO of the Free Press, stated:

“The question before the FCC is whether this deal serves the public interest. The answer is clear: A bigger Comcast is bad for America.

“Merging the nation’s two biggest cable-Internet providers would turn Comcast into our communications gatekeeper, able to dictate the cost and content of news, information and entertainment. We need an Internet and video marketplace that offers people high-quality options at prices they can afford — not a near-national monopoly determining what we can watch and download.

“In the past four years, Comcast has raised basic cable rates in some markets by nearly 70 percent. Its top lobbyist has admitted that the price increases will continue to skyrocket if the merger goes through. And that's about the only thing Comcast has said about this deal that you should believe.

“The growing chorus of groups opposing this takeover knows the truth. The only rational choice is for the FCC and Justice Department to reject this merger."

 

American Enterprise Institute Scholar Calls DSL Obsolete

For the second time this year, one of the major defenders of the cable and telephone companies has admitted that DSL cannot provide the Internet access we need as a nation. This admission validates our research as well as that of Susan Crawford and others that show most Americans are effectively stuck with a cable monopoly.

On April 7, 2014, the Diane Rehm show hosted another discussion on telecommunications policy with guests that included Jeffrey Eisenach, the Director of the Center for Internet, Communications, and Technology Policy at the American Enterprise Institute.

During that show, Eisenach stated, "The vast majority of Europeans still only have DSL service available, which we in the United States consider really almost an obsolete technology now."

Interestingly, Eisenach and others have repeatedly claimed that there is no market failure in the US - that we have plenty of choices. But most Americans have to choose between what most now admit is an obsolete DSL product and cable. Eisenach would add 4G LTE as another competitor, but as we have noted many times, the average household would have to pay hundreds of dollars per month to use their LTE connection as a replacement for DSL or cable.

The average household uses something like 40-55 GB of data per month. Given the bandwidth caps from LTE providers, the overage charges quickly result in a bill of approximately $500 or more depending on the plan. This is why the overwhelming majority of the market uses mobile wireless as a complement, not substitute to wired networks.

We are left with one conclusion: there is no meaningful competition or choice for most of us in the residential telecommunications market. And no real prospect of a choice either as the cable companies only grow stronger.

This is not the first time Eisenach admitted that DSL is insufficient for our needs. Back in January, on Diane's show, he again used Europe's dependence on DSL as evidence that it was falling behind: "They are reliant on these 20th century copper networks which have real limits on the amount of speed that they can deliver."

Even those who only want the private sector to deliver services are starting to admit that the existing providers are failing us. What more do communities need to take an active role in ensuring their needs are met?

Diffraction Analysis Offers Free Webinar on FTTH, April 15th, 11 a.m. Central

On April 15th, Benoit Felten and his organization, Diffraction Analysis, will host a free webinar to discuss results from their latest study. The study, Why Consumers Love FTTH – The FTTH Consumer Experience Study, delves into the fiber experience in Sweden. Here are some preliminary findings from the report:

  • In Sweden a huge majority FTTH users (75%) think their broadband is better than before they had fibre.
  • 67% of Swedish broadband users think broadband over fibre is ‘Very Good’, but only 13% think the same of DSL.
  • Swedish FTTH subscribers use video-communication over the Internet five times as much (25%) as DSL users.
  • In Sweden 59% of FTTH users think fibre broadband is sustainable. Only 44% of DSL users think the same of DSL.
  • In Sweden, 59% of DSL users find their broadband price excessive vs. only 32% for FTTH users.
  • For FTTH users in Sweden, quality of broadband is the 1st criterion after home price when choosing a new home.

He recently spoke at the 2014 Broadband Communities Summit in Austin, Texas. Felten also spoke on Smart Cities and Infrastructure at the FTTH Conference in Stockholm, Sweden, in February. Chris interviewed Felten in episode 21 of the Community Broadband Bits podcast back in 2012, when the two discussed the famous network in Stokab. 

You can register for the free webinar at GoTo Meeting. The event starts at 11 a.m. Central on April 15th.

Consumerist Sounds Off on Internet Essentials and Comcast's Hidden Agenda

In a Consumerist article, Kate Cox takes a look at who is benefitting the most from Comcast's Internet Essentials program and - guess what - it is Comcast.

The program has brought Internet access to a number of people who may not otherwise have been able to get online and that's a good thing. According to Comcast, 300,000 families are receiving 5 Mbps download for the program's $9.99 monthly rate. All considered, that is 300,000 families who might otherwise not have Internet access at all.

But Cox noticed how the gigantic cable conglomerate pulls the program out to dazzle politicians whenever they need a little public opinion boost. In August 2013, Comcast announced it was extending the program:

Comcast, meanwhile, is not acting out of a sense of charity or philanthropy. They’re satisfying federal requirements to help bring broadband access to the poor. And Internet Essentials is only available where Comcast already operates — so Comcast isn’t spending a dime to run infrastructure to any place where it doesn’t already exist.

They sure get to benefit from looking philanthropic, though. Community outreach is a huge part of Comcast’s extensive lobbying efforts. And in looking to gain the blessing of federal regulators on their impending buyout of Time Warner Cable, “benefit to the community” is one of their best cards to play.

Cox notes the significant obstacles to signing on to the program, as we did in 2012. She also notes that families who need the program most are not always the ones who are able to find the information to enroll:

The other barrier is the enrollment process itself: Internet Essentials is separate from Comcast’s standard service. It uses a different website and phone number for enrollment and information. Consumers who call Comcast’s regular line and try to ask for the cheap internet generally get shunted into some kind of promotional triple-play package. Comcast representatives don’t redirect callers to the other phone number.

So the consumers most likely to be able correctly to sign up for Internet Essentials are high-information consumers who have the time and resources to use the internet to research how to get the best choice in internet access. And the target user of Internet Essentials is a lower-information consumer, potentially with education and/or language barriers, who doesn’t necessarily have the time and resources, or internet access, to do all the research over best choices.

Once a household no longer has a child who qualifies for free and reduced lunches, that household no longer qualifies for Internet Essentials.
Cox also comments on the service itself:

The other main problem with Internet Essentials is that it’s crap. A download speed of “up to 5 Mbps” is, by the standards of 2014, painfully slow. Those fancy online educational tools that are supposedly the main benefit of the program? Many of them don’t work so well on that connection.

In other words, Comcast is giving their low-income customers access to what they pay for — not access on par with what most other Comcast customers can buy. It’s both a fifth of the cost and a fifth of the service.

Last year, John Randall from the Roosevelt Institute came to a similar conclusion:

Comcast's Internet Essentials program does more to benefit Comcast's customer acquisition, public relations, and lobbying departments than to help people in America who need high-speed Internet access at a reasonable price. The reality is that the program is a cleverly designed customer acquisition program that benefits Comcast's bottom line. 

The Internet Essentials program, while offering a temporary respite to a small segment of low-income families, draws attention away from the real solution - policies that ensure affordable, reliable, and fast Internet access to all. As long as we continue to allow the consolidation of some of the most hated companies in the country, Internet Essentials is the best we can expect.

Process Matters: Harold Feld's Guide to the Time Warner Cable/Comcast Merger

The proposed Comcast/Time Warner Cable deal will be on everyone's mind for many months to come. Thanks to Harold Feld, it is now possible to follow the process as it moves forward. Feld began a series of posts earlier this month that map out the review as it moves from the Department of Justice Antitrust Division to the Federal Communications, and finally to Congress. As Feld notes, the entire process will last six months at least and could run for more than a year. 

In addition to drawing a process map, Feld provides insightful subtleties on the purpose behind each step in the review. He also offers political analysis that may influence the outcome. Feld gets into the unique review process, burdens of proof, and relevant definitions at each stop along the way. Highly recommended, especially for law students.

Part I - Introduction

Part II - Antitrust Review at the DOJ

Part III - Federal Communications Commission analyzes public interest

Part IV - The proposal moves through the committee process and the public has a chance to express themselves to their elected officials (including lobbyists)

 

To Overbuild or Underbuild? A Rural Policy Conundrum - Community Broadband Bits Podcast #91

Lisa Gonzalez and I, Christopher Mitchell, are back in studio for a short conversation about the implications of a municipal network or a coop receiving subsidies from government to engage in overbuilding, where it builds a fiber network in an area already served by slow DSL and cable networks.

This has become an important issue as Minnesota considers a fund that would encourage networks in areas currently unserved and possibly underserved.

We discuss the economics, fairness, and practial realities of both allowing "overbuilding" and disallowing it as Minnesota features two similar networks that have come to different conclusions, to the advantage and disadvantage of different local stakeholders.

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 13 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

Listen to previous episodes here. You can can download this Mp3 file directly from here.

Thanks to Valley Lodge for the music, licensed using Creative Commons. The song is "Sweet Elizabeth."

History of the Quickly Subverted 1996 Telecommunications Act - Community Broadband Bits Episode 89

If all had gone according to the plan behind the 1996 Telecommunications Act, we would have lots of competition among Internet service providers, not just cable and DSL but other technologies as well. Alas, the competing technologies never really appeared and various incarnations of the FCC effectively gutted the common carriage requirements at the heart of the Act.

Earl Comstock joins us today to explain what they had in mind when they spent years developing the goals and text of the Act. A staffer to Senator Stevens - and yes, we discuss the legacy of Senator "series of tubes" Stevens and you might be surprised when you learn more about him - Earl helped to craft the Act and then had to watch as the FCC and Courts misinterpreted it.

At the heart of our conversation is what they believed would be necessary to achieve the goals of expanding access to telecommunications service to all.

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 30 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

Listen to previous episodes here. You can can download this Mp3 file directly from here.

Thanks to Valley Lodge for the music, licensed using Creative Commons. The song is "Sweet Elizabeth."

Overview of Stockholm's Stokab - Community Broadband Bits Episode #88

Having just returned from a short trip to Sweden, Lisa Gonzalez and I discuss what I learned and how Stockholm has become one of the most connected cities on the planet.

We talk about how Stockholm built a massive dark fiber network that has enabled competition at the service layer, the status of telecommunications in Sweden, and what lessons we can learn in the U.S. from their experience.

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 15 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

Listen to previous episodes here. You can can download this Mp3 file directly from here.

Thanks to Valley Lodge for the music, licensed using Creative Commons. The song is "Sweet Elizabeth."

Santa Monica's Telecommunications Master Plan

In 1998, Santa Monica created a Telecommunications Master Plan that has guided it for the past fifteen years in building an impressive fiber network connecting all community anchor institutions and many business districts. We have just released a case study detailing this effort, entitled: Santa Monica City Net: An Incremental Approach to Building a Fiber Optic Network.

Below, you will find the original Master Plan and Exhibits. Santa Monica got it right - this document can still be a model today for communities across the United States. This document is particularly important for local governments that do not have a municipal electric department because it offers an alternative model run out of the IT department.

FCC to Investigate Barriers to Community Networks

We are supportive of the announcement today from the Federal Communications Commission. We salute the FCC for beginning to examine how state level barriers against municipal networks deter investment in the networks both communities and the nation desperately need.

From the statement:

The Commission will look for opportunities to enhance Internet access competition. One obvious candidate for close examination was raised in Judge Silberman’s separate opinion, namely legal restrictions on the ability of cities and towns to offer broadband services to consumers in their communities.

The FCC has a history of encouraging states not to pass such laws (Commissioner Clyburn, previous FCC Chair, former Commissioner Copps) and the National Broadband Plan made recommendation 8.19: "Congress should make clear that Tribal, state, regional and local governments can build broadband networks."

Even if communities choose not to build their own networks, having that capacity changes the dynamic of the big cable and telephone companies - something Franklin D. Roosevelt described as the "birch rod" in the cupboard (regarding municipal electricity):

But on the other hand the very fact that a community can, by vote of the electorate, create a yardstick of its own, will, in most cases, guarantee good service and low rates to its population. I might call the right of the people to own and operate their own utility something like this: a "birch rod" in the cupboard to be taken out and used only when the "child" gets beyond the point where a mere scolding does no good.

With the recent network neutrality decision from the Circuit Court, the FCC has a very clear path to ensure all local governments can decide locally whether such an investment is wise, rather than being preempted by a state legislature that may have been misled by powerful lobbyists.

We are calling on our readers, local governments, and all concerned citizens to applaud the FCC decision to examine these barriers. One thing you can do to help is to reach out to Senators and your representatives in DC. Make sure they know you support a local decision-making process rather than one-size-fits-all rules dictated by those in the capital.

If you want more background on Section 706 and municipal networks, listen to our recent podcast interview with Harold Feld.

We are also cheered by the continued stated committment of the FCC to preserving the open Internet and hope this process will achieve that end. We continue to believe that properly classifying Internet access as a telecommunications service and appropriate forbearance for unnecessary regulations is the best approach for safeguarding the Internet. However, we recognize the intense pressure by some of the most powerful corporations in DC not to take that route. Our work is cut out to ensure there are no loopholes that would damage the Internet.