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Clearwire Validates Skepticism About Wireless as Last-Mile Solution

Clearwire, which brags that it built the first 4G network in the country, is under assault from its customers.

Customers began complaining in mid-2010 that Clearwire had begun to throttle their home Internet connections, sometimes as slow as 256Kbps. It wasn't clear (ba-dum ching) at the time as to what standard Clearwire was using in order to trigger the throttling—some users were told about monthly usage caps while others were simply told that there were certain times of day in which the network would be congested. Customers were frustrated at this lack of transparency, and complaints began piling up all over the Web.

We were told for years that WiMax would obviate the need for last-mile wired connections. Now we are told that 4G LTE will solve those problems - and gullible reporters gush about how fast their connections are in these early days as the network is built. This is akin to driving on a metro interstate at 3AM and wondering why anyone would ever complain about rush hour traffic. 4G networks will likely be much better than 3G (it is a higher number, after all) but it remains to be seen how well they perform in real world conditions when many devices can actually attach and congest them.

We remain skeptical of wireless as a solution to last-mile problems. Wireless does little more than take a high-capacity wired connection and split it among hundreds or thousands of users - while reducing its reliability.

Evidence for the Looming Cable Monopoly

The Netflix Techblog has released a graph of performance by Internet Service Provider - which I modified to demonstrate the Looming cable monopoly as identified by Susan Crawford (and recently discussed here by Mitch Shapiro).

Netflix Speeds by Provider

The trend is unmistakable.  There are 2 distinct groupings - the cable providers all beat the DSL providers (Verizon is in the middle, likely due to its fast FiOS speeds averaging with much slower DSL connections).  At the very bottom is Clear's 4G WiMax - you know, the superfast wireless that is the key to fast broadband!  

Communities need to read this chart and take a lesson: the future of broadband is not pretty if you do not have a network that puts your needs first.  Cable broadband speeds are increasingly more rapidly than DSL, meaning a local monopoly on high speed broadband, with DSL slowly becoming the modern dial-up.

Twin Cities Broadband in Slow Lane Compared to Nearby Small Community Network

Today, we at MuniNetworks.org have released the first of a series of regional broadband comparisons examining the benefits of community networks. We decided to start with the Minneapolis / St Paul area, where we live and work.

Read the Analysis [pdf]
Read the Press Release

Our analysis, "Twin Cities Broadband No Match For Community Network," compares the available broadband plans in Minneapolis and St. Paul to small town Monticello, located 45 miles NW of Minneapolis. Monticello, as we have frequently discussed, has built a publicly owned FTTH network (which then pushed its telco incumbent to invest in much faster connections as well).

Despite Comcast's much touted DOCSIS 3 upgrades and Qwest's "Heavy Duty" DSL, neither comes close to the value of Monticello's services. These companies have continued to use last-generation DSL and cable technologies with significant downfalls, including much slower upstream speeds than downstream -- a limitation particularly damaging to small businesses and people attempting to work from home.

Qwest advertises "fiber-optic fast" but its speeds come nowhere near Monticello's actual fiber-optic network. Further, Qwest's actual speeds are often far below their claims due to limitations with DSL technologies. Comcast offers faster speeds than Qwest, even advertising a 50 Mbps downstream speed that appears to rival Monticello's until you consider the Comcast cable architecture rarely delivers promised speeds because entire neighborhoods have to share bandwidth. Both providers struggle to deliver fast upstream speeds, whereas Monticello's network services all include upstream speeds just as fast as the downstream speeds.

When it comes to prices, Monticello's are lower, despite the faster speeds they offer. Minneapolis residents have access to a low-cost Wi-Fi network, but in that case, the low cost reflects the slower available speeds and significantly lower reliability.

Our analysis also includes Clear, a new Wi-Max provider, to discredit any claims that 4G wireless will somehow change the fundamental dynamic at work in the Twin Cities: Comcast and Qwest are content to deliver 2nd rate speeds at inflated prices. Wireless provider have not challenged their dominance and will not for the foreseeable future.

The analysis features a number of graphs to illustrate the differences -- below we have excerpted the first that compares available speeds for different dollar ranges.

Comparing services

Cedar Falls Utilities Expands Broadband to Unserved Areas

A community-owned network, infused with broadband stimulus dollars, is bringing broadband to people stuck on long-distance dial-up for Internet access.

Cedar Falls Utilities, which recently announced an upgrade to FTTH from HFC, announced more good news last week: they have received an RUS stimulus grant (PDF, scroll down) to expand their broadband services to nearby unserved areas.

CFU is a public power and telecom utility in Iowa with an electrical footprint that roams outside Cedar Falls muni boundary. For years, CFU has wanted to offer broadband to its whole electrical territory but could not justify the capital expense outside the city because the rural areas would not produce enough revenues to run the network in the black.

With this 50% grant ($873,000) from the Rural Utilities Services, CFU is expanding and will offer broadband to their whole electrical territory. Serving broadband to these areas will be a sustainable enterprise -- the building of broadband is what costs so much money (one of the very good reasons networks should be accountable to the communities -- the "market" will not make the appropriate investment by itself).

Some folks will get fiber services and others will get WiMAX, a welcome change from dial-up (for some, long distance dial-up is the only option to connect to the Internet!).

I asked CFU if people in the area had access to broadband and was told that some had access to satellite services… to which I responded, "So no one has access to broadband?" Satellite is a last ditch option, not a viable competitor to services that deliver actual broadband.

Some also have access to some very slow cellular speeds - again, not really broadband but it is better than dial-up.

We salute Cedar Falls for requesting a 50% grant from the Feds rather than the full 80% they could have gone with. Self-reliance means taking responsibility for the community, not maximizing the "free money" available from the Feds.

Though we at MuniNetworks.org believe in a future with everyone connected with both mobile and reliable wired access, we do not expect it to happen tomorrow. We hope that over time, CFU is able to expand the reach of their fiber to everyone.

New from the Carolinas

  • Salisbury, a community in North Carolina building a city-owned full fiber-to-the-home network, has run into an unexpected difficulty: naming the new network.

    To put it simply, all the good names are taken.

    Mike Crowell, director of broadband services — he jokes that he is the director of BS — says the city can't find a name that it can both trademark and get a domain name for.

    The story has some entertaining suggestions - but the reason I wanted to note the article is because it ends with this:

    In coming weeks, the city will be purchasing and outfitting a marketing trailer, which it can send into neighborhoods and to community events to explain the new cable utility and get people excited about what's around the bend. The trailer will be plastered, of course, with the system's chosen name.

    This is a great marketing method - particularly if the trailer has computers showing what is possible with the new network in direct comparison to existing offers. Wilson's Greenlight Network also used this approach and reported that it was very successful.

  • South Carolina was unique in being the only state where the public controlled the spectrum available for WiMax and could have built a state-wide broadband network. Instead, they chose to sell it off to the private sector for a pittance.

  • Despite state-created barriers to publicly owned broadband networks in South Carolina, the town of Hartsville is studying the feasibility of a city-owned network. The new Mayor is supporting this initiative:

    Pennington spoke about a proposed broadband initiative he is pushing that would enable the city to create a fiber optic network and offer broadband services such as high speed internet, cable television and digital telephone service to city residents and businesses.

    Hartsville City Council has approved funding up to $5,000 to pay for a feasibility study into the prospect of such an initiative. Officials are considering proposals for a study that could cost as much as $50,000 and hope to obtain the remaining funding from private sources.

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