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Report Dives Deep Into Big Cable and Telecom Monopolies

For years, national cable and telecom companies have complained that they work in a tough industry because “there’s too much broadband competition.” Such a subjective statement has created confusion among subscribers, policy makers, and elected officials. Many people, especially those in rural areas, have little or no choice. We wanted to dive deeper into the realities of their claim, so we decided to look at the data and map out what the large carriers offer and where they offer it. In order to share our findings with policy makers, local elected officials, and the general public, we’ve created a report that includes series of maps to illustrate our findings and our analysis, Profiles of Monopoly: Big Cable and Telecom.

Download the report.

Choice: The Ultimate Prize

Whether it’s a brand of breakfast cereal, a model of car, or an Internet Service Provider (ISP), those who purchase a good or service know that when they have more options, the options they have are better. The FCC defines "broadband" as connectivity that provides speeds of at least 25 Megabits per second (Mbps) download and 3 Mbps upload; our report fouces on service where ISPs claim to offer this minimum threshold. 

When it comes to ISPs, subscribers often have a faux choice between unequal services, such as one telephone company offering slow DSL and one cable company that offers faster cable Internet access. People in rural America often have even slimmer options because cable ISPs don’t provide broadband in less populated rural areas. In other words, the market has spoken and the market is broken.

Net Neutrality Repeal Threatens Some States More Than Others

On December 14th, FCC Chair Ajit Pai and the Republican Commissioners voted to present a huge holiday gift to big ISPs by dismantling network neutrality, despite outcries from the American people. When we examined FCC data to determine how many Americans would be left without market protections from known network neutrality violators, the numbers were discouraging. Now we’ve reached into the weeds to analyze the numbers on a statewide basis. 

Percentage Of Population

The results reveal that a significant percentage of Americans will be limited to Internet access only from large monopolies that have a history of violating network neutrality and very strong incentives to abuse their market power. 

Some states with higher population benefit slightly from competition relative to others — compare Florida’s 40 percent to 65 percent in Pennsylvania — but this also reflects the anti-competitive nature of big ISPs that tend to cordon off sections of the country and respectfully stay within their zones. Other, more rural states, such as Wisconsin at 66 percent, have few options because national ISPs just aren’t interested in serving areas where population is sparse and the pay-off is a long time coming. Lack of competition means high probability of service from one of the big four known violators in our study — AT&T, Verizon, Comcast, and Charter.

In this chart, we've listed states in order of greatest percentage of impacted population: 

Net Neutrality Repeal Fact Sheets: By The Numbers, Maps And Data

Update 12/22/2017: Original maps generated on December 11th and used for these fact sheets understated the population of Americans forced to obtain services from known network neutrality violators. The problem is even greater than we originally calculated. We've update our maps and our fact sheets to reflect the more accurate data.

Network neutrality protects Americans from the ability of powerful ISPs to exercise unchecked power over what subscribers access and how quickly they receive certain content. The neutral characteristic of the Internet is one of its finest qualities. If Republican FCC Commissioners and Chairman Ajit Pai vote to shred network neutrality on December 14th as they’ve indicated, 177 million Americans will be left to the whims of a flawed market.

Mapping It Out, Presenting The Fact (Sheets)

We recently presented visualizations based on FCC Form 477 data that supports our findings on the way the repeal will limit vast swaths of people to a bleak Internet access future. Nationwide, approximately 29 million people have no broadband Internet access. Another 129 million will have no ability to change Internet access providers because there is no other option. Out of those folks, 48 million are forced to take service from an ISP that is a known network neutrality violator. Likewise, 146 million may have a choice between two ISPs, but about 52 million must choose between two network neutrality violators that have actively worked to undermine the policy for years. 

Our team also parsed out the numbers for California and the East Coast from Maine to Virginia. The results are just as discouraging.

In our fact sheets, we focused on the number of people who either have no broadband access or who will be forced to take service from a firm that is a known violator of network neutrality. We've included our maps to help illustrate just how pervasive this problem is in each region.California fact sheet small

Repealing Net Neutrality Puts 177 Million Americans at Risk

Update 12/20/2017: Original maps generated on December 11th understated the population of Americans forced to obtain services from known network neutrality violators. The problem is even greater than we originally calculated, particularly in New York. End update.

This Thursday, December 14th, the FCC plans to remove network neutrality protections. Republican Commissioners and Chairman Ajit Pai justify the decision by claiming that the market will naturally protect subscribers from predatory big ISP behavior. Unfortunately, the FCC’s own numbers disprove their theory. We dug into the data that reveals how 177 million Americans will be left without any market protection following net neutrality repeal.

Visualizing The Data

Using FCC 477 data, we created a visualization of relevant data. This map focuses on the people and businesses at greatest risk - where they are limited to options from providers that have violated network neutrality in the past or have admitted the plans to violate it in the future.

NationalMap_Legend_2017_12_Updated_1.png

For a larger image, download this version [18 MB png]. 

Download Net Neutrality Repeal By The Numbers, U.S.A. Edition, fact sheet here.

The results are not inspiring. More than 129 million people are limited to a single provider for broadband Internet access using the FCC definition of 25 Mbps download and 3 Mbps upload. Out of those 129 million Americans, about 52 million must obtain Internet access from a company that has violated network neutrality protections in the past and continues to undermine the policy today.

Network Neutrality On MuniNetworks.org

The FCC is set to vote on whether or not to repeal network Neutrality under the deceptive guise of “Restoring Internet Freedom” on December 14th. Like others who study broadband and telecommunications policy, we’re distressed by the possibilities for the Internet and its users, should the Commission decide to repeal these protections. Because we use the Internet for so much in our daily lives, reversing network neutrality will give big ISPs like Comcast and Verizon undue power over what information we receive, our online business, and the result may negatively impact innovation. 

We’ve gathered together some of our earlier posts on network neutrality to help explain why the policy is so important. In this collection, we’ve included some of our own writings as well as media that we consider paramount to understanding why we need to preserve network neutrality.

The Basics At 80 MPH (Video):

An old but a goody. In this video, Professor Tim Wu explains network neutrality, including paid prioritization. The video is from 2016.

The Big ISP Perspective (Video):

Many of us consider a free an open Internet a necessity to foster innovation and investment, but the words from the lips of the big ISPs are changing, depending on whom they’re talking to. This video reveals what they tell the government about network neutrality versus what they tell investors.

The Small ISP Perspective (Audio):

Like other small ISPs and municipal networks that offer services to the public, Sonic takes the opposite view of Comcast, Verizon, and other big corporate incumbents - they believe network neutrality is important and should be preserved. Dane Jasper, Sonic’s CEO and Co-Founder explains why innovation needs network neutrality in episode 261 of the Community Broadband Bits podcast.

Allband All-in For Rural Michigan Internet Access - Community Broadband Bits Podcast 276

After being told by the large telephone incumbent that he could pay a nominal fee in rural Michigan to get phone service, John Reigle built a home. And when the telephone company changed its mind after quoting an outrageous price, he created a cooperative that is building fiber networks in a very rural region of Michigan. 

General Manager Ron Siegel of Allband Communications Cooperative joins us for episode 276 of the Community Broadband Bits podcast. We talk about the realities of connecting the most rural unconnected, while fighting for what meager support is available from state and federal sources. 

Along the way we talk about how the cooperative grew up and where its future lies in an uncertain time for local networks as the federal government showers money on the biggest incumbents that aren't really investing in rural America.

We previously wrote about Allband here.

This show is 22 minutes long and can be played on this page or via Apple Podcasts or the tool of your choice using this feed

Transcript below. 

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

Listen to other episodes here or view all episodes in our index. See other podcasts from the Institute for Local Self-Reliance here.

Thanks to Arne Huseby for the music. The song is Warm Duck Shuffle and is licensed under a Creative Commons Attribution (3.0) license.

Verizon Will Cut Off Rural Subscribers In Thirteen States

A recent proposal being considered by the FCC that has raised the loudest outcry has been the status of mobile broadband in rural areas. Now that Verizon is discontinuing rural subscriber accounts, the FCC will be able to see those concerns come to life.

Dear John...

The company has decided to cut service to scores of customers in 13 states because those subscribers have used so many roaming charges, Verizon says it isn’t profitable for the company. Service will end for affected subscribers after October 17th.

Verizon claims customers who use data while roaming via other providers’ networks create roaming costs that are higher than what the customers pay for services. In rural communities, often mobile wireless is the best (albeit poor) or only option for Internet access, so subscribers use their phones to go online.

Subscribers are from rural areas in Alaska, Idaho, Indiana, Iowa, Kentucky, Maine, Michigan, Missouri, Montana, North Carolina, Oklahoma, Utah, and Wisconsin.

In a letter sent to customers scheduled to be cut off, Verizon offered no option, such as paying more for more data or switching to a higher cost plan. Many of the people affected were enrolled in unlimited data plans:

“During a recent review of customer accounts, we discovered you are using a significant amount of data while roaming off the Verizon Wireless network. While we appreciate you choosing Verizon, after October 17th, 2017, we will no longer offer service for the numbers listed above since your primary place of use is outside the Verizon service area.”

Affecting Customers And Local Carriers

Apparently, Verizon’s LTE in Rural America (LRA) program, which creates partnerships with 21 other carriers, is the culprit. The agreements it has with the other carriers through the program allows Verizon subscribers to use those networks when they use roaming data, but Verizon must pay the carriers’ fees. Verizon has confirmed that they will disconnect 8,500 rural customers who already have little options for connectivity.

Philip Dampier at Stop The Cap! writes:

Internet Association's Video Looks At Network Neutrality And What ISPs Are Really Saying

With the FCC taking another look at the advancements in network neutrality rules passed during the Obama administration, the topic has been on the lips of many segments of the population. Many of us consider a free an open Internet a necessity to foster innovation and investment, but the words from the lips of the big ISPs are changing, depending on whom they’re talking to.

The Internet Association, who went on record in 2015 in support local authority for Internet infrastructure investment, recently released a video about the fickle financial reporting of Comcast, AT&T, and Verizon. 

The Internet Association describes the situation like this:

In our latest video, Internet Association takes a look at what Internet Service Providers (ISPs) told the government about net neutrality’s impact on investment and what they told their investors about its impact. They don’t quite match up.

Something to keep in mind: when companies like ISPs talk to their investors, they’re legally obligated to tell the truth.

The question of infrastructure investment is an important one because network investment helps the entire Internet economy grow and thrive. Innovative websites and apps fuel consumer demand for the Internet, which in turn fosters further network investment, which then fosters further innovation by websites and apps.

At Internet Association, we believe that the only way to preserve the free and open internet – and this cycle of innovation – is through strong, enforceable net neutrality rules like the ones currently on the books.

Check out the video and hear the contradictions from the lips CFOs who head up these big ISPs. What’s the real story here?

The Broadband Market is Broken: Don't Fall for Lobbyist Lies

We’ve all been lied to, but when we’re lied to by those we rely on, it’s the worst. Right now, we are all subject to a lie about our Internet access. That lie is rooted in the idea that the best way to move forward is to allow the free market to dictate our access to the Internet, along with the quality of services, privacy protections, and competition.

The big ISPs try to tell us “it’s a competitive market,” then they tell their shareholders competition is scarce. They tell legislators they fear competing against relatively small municipal networks and cooperatives that only serve singular regions but they have subscribers in vast swaths across the country. Federal decision makers tout the benefits of competition, but approve consolidation efforts by a few powerful companies that are already behemoths. This reality is The Big Lie.

What can we do about it? First, understand the cause of the problem. Next, share that understanding. We’ve created this short video to explain The Big Lie; we encourage you to share it and to check out our other resources. Our fact sheets and reports are a great place to start if you’re looking for a way to improve connectivity in your community. Don't forget to check out our other videos, too. 

Talbot County, Maryland, RFI: Due Date September 1st

Talbot County, Maryland, has issued a Request for Information for Partnership for Deployment of High-Speed Broadband (RFI). Submissions are due no later than September 1st.

Looking For Ideas From Potential Partners

The RFI describes the county’s desire to work with a private sector partner who can bring gigabit capacity (1,000 Megabits per second) to the community. While county leaders prefer Fiber-to-the-Premise (FTTP) they note that the rural character and geography of the region may require a hybrid fiber/wireless solution.

The county plans on offering assistance in obtaining grant funding, providing access to rights-of-way and existing public assets, and easing any partner through the permitting process. The county encourages all types of entities to submit responses, including incumbents, cooperatives, and nonprofit organizations.

This Is Talbot County

Approximately 38,000 people live in Talbot County, which is located on the state’s eastern shore of Chesapeake Bay. Both Baltimore and Washington D.C. are 90 minutes away; Easton (pop. approx. 16,000) is the county seat.

Agriculture has been an important part of the county’s economy since European settlers landed there in 1630 and it continues today with corn, soybeans, and poultry. Healthcare is also an economic driver in part due to the high number of retirees in Talbot County. Tourism that centers on the community’s proximity to the ocean also employs many residents.

The Connectivity Situation

Fiber-coaxial networks exist in Talbot County, including a municipal network in Easton and areas in the county where private provider Atlantic Broadband offers Internet access. Many of Atlantic Broadband subscribers are in the bay communities in the western areas.

logo-easton-md-utilities.png The RFI states that incumbent Verizon supplies DSL via its copper infrastructure to more populated areas. There is also fixed wireless available in some areas.