Showing posts with label Comcast. Show all posts
Showing posts with label Comcast. Show all posts

Thursday, October 07, 2021

Telcos, Comcast target fiber upgrades to business customers -- not residences

Two legacy telephone companies and the nation's biggest cable TV company are upgrading their legacy metallic delivery infrastructures to fiber for business customers. Not targeted for the upgrades are residential users.

Residential voice telephone service was cross subsidized by business customers. There isn't a similar situation when it comes to advanced digital telecommunications. That's because under current U.S. regulatory policy, it's classified like the information services of the 1990s dialup era, AmericaOnline and CompuServe, and not as telecommunications services. 

Information services -- regulated under Title I of the Communications Act of 1934 -- are considered optional, discretionary services and not utilities. Hence, they are not subject to universal service and anti-redlining requirements, providing no regulatory incentive for telcos and cablecos to offer fiber connections to residences.

Friday, August 27, 2021

Americans have a strong public interest group on advanced telecommunications policy: themselves. And they’ve been lobbying hard for two decades.

It has been postulated that America’s advanced telecommunications infrastructure deficits are largely attributable to the lack of public interest representation in public policymaking. There’s no equivalent of the Sierra Club for environmental policy in the case of telecommunications policy as Christopher Mitchell, Director of the Institute for Local Self Reliance’s Community Broadband Networks Initiative, observed in a recent Background Briefing with Ian Masters (@10:18).

That’s not entirely true. For years, Americans have been barraging their elected representatives at all levels of government with complaints and pleas for action to remedy lack of connectivity, high costs and poor customer service. When people are vexed to see neighbors just down the road or around the bend with landline connections but not available at their address and don’t get a satisfaction from providers, their next calls are often to their elected representatives and the news media. It’s been going on two decades now. It began in the early 2000s when DSL service didn’t quite extend to their homes and calls to telephone companies for connections were rebuffed or service promised “soon” that never arrived as the years crept by. Meanwhile, many were forced to turn to substandard, poor value wireless options.

During the COVID-19 pandemic and accompanying public health measures that turned homes into offices, classrooms and medical clinics, their predicament grew more dire and the calls to elected representatives for action more desperate as household members dealt with sluggish, unreliable and costly connectivity. In 2020, some elected representatives noted the subject had become the top issue in constituent communications with their offices.

When people don’t see their situations improving year after year despite their petitions to elected officials and only lip service from them, they naturally begin to wonder if they are really being heard. They grow disillusioned and angry and receptive to corrosive political messaging that the “system is rigged against them.”

A reinforcing perception that has become something of self-fulfilling prophecy is the big telephone and cable companies are the only voices that truly count. People can petition their elected representatives all they want, but their supplications don’t really mean anything in the end because the companies will always get their way and investors’ interests outweigh those of the public. It’s a variation on testimony by the then president of General Motors at a 1953 Senate hearing suggesting that what’s good for GM is good for America.

The comparison doesn’t apply to AT&T and Comcast today. While most Americans could buy an affordable car in the 1950s, many cannot get a landline advanced telecommunications connection at most any price or at an affordable monthly rate for those that can.

Tuesday, August 03, 2021

Big cable’s influence, potential benefit reflected in infrastructure measure pending in Senate


The influence of big cable TV companies like Comcast and Charter Communications is reflected in the massive omnibus infrastructure bill pending before the U.S. Senate. A major indication is the proposed legislation’s requirement that some $42 billion in grant funding it would allocate to state governments be used to provide IP connectivity of at least 100 Mbps down and 20 Mbps up with latency that sufficient to allow “reasonably foreseeable, real-time, interactive applications.” That’s perfectly aligned with the current throughput offered by cable TV providers over hybrid coaxial copper and fiber cable and the Data Over Cable Service Interface Specification (DOCSIS).

The measure’s emphasis on prioritizing funds to high-cost areas with poor connectivity options points to largely benefit big cable. Consider cable TV’s history. It developed in the 1950s to serve rural areas too distant to reliably receive over the air signals from TV transmitters in cities, serving homes with cables distributed from signal amplifiers connected to large “community antenna” arrays to boost the signal.

If the bill becomes law, cable lobbyists could mount a full court press on statehouses like that of the mid-2000s when they worked to shift authority over their local municipal franchises to state public utility commissions in order to avoid universal service demands from the locals. The case they might present to policymakers: give us the funds to build out our footprints in our traditional rural areas without good connectivity just as they lacked access to urban TV signals in the past.

Cable would benefit by attaining a monopoly position in more sparsely populated rural and exurban areas where telephone companies have abandoned their legacy copper telephone lines and have not offered residential services delivered over fiber. There, cable would not have to share a duopoly market with telephone companies in more densely developed areas where the telcos are offering symmetric fiber services instead of cable’s asymmetric 100/20 Mbps throughput.

Sunday, July 01, 2018

Comcast to build FTTP telecom infrastructure in 2 Michigan townships after tax measure fails

According to the Holland (Michigan) Sentinel, Comcast cites lower deployment costs due to improved carrying of fiber vs. COAX cable:

As Laketown finally gets internet, rural access still a prevalent issue elsewhere: Traditional coaxial cables use radio frequencies as the medium to transmit data, which means there is a larger amount of signal loss compared to fiber technology. This loss of signal that comes with traditional coax has made it difficult to serve Laketown and Saugatuck townships in the past because of large-size properties and widespread homes.
Now Comcast can build fiber to each home without building or extending main facilities to each one at about the same cost as using traditional coax cables to build the network out, Gilbert said.

Thursday, February 08, 2018

Go suck a satellite


That's the message to adjacent landline redlined households seeing this tree placard pitching satellite Internet service. That's Comcast cable on the nearby utility pole. Dateline: El Dorado County, California.

Monday, October 03, 2016

Incumbent bellyaching over "unfair competition" from public sector fails straight face test

Rural areas in Marion County could still get broadband access | Times Free Press: JASPER, Tenn. — Like many local governments across Tennessee, Marion County leaders have been pushing for a couple of years to change state laws that restrict municipal utilities like EPB's gigabit internet, TV, and phone services from expanding beyond current borders. EPB has petitioned the state and the Federal Communications Commission, too, and Mike Partin, president and CEO of the Sequatchee Valley Electric Cooperative, said broadband access has been "widely debated across the state."

"So far in the [state] Legislature, that has been defeated," he said. "AT&T has a pretty extensive lockdown, it seems like, in the Legislature. That's one of the holdups." Telecommunications companies such as AT&T and Comcast argue that it's unfair to allow government to compete the market with private industry. (Emphasis added)
That argument would hold water but for a single fatal flaw: telecommunications infrastructure is not by nature a competitive market but rather a natural monopoly/duopoly. Shouting "unfair competition" in a noncompetitive market doesn't pass the straight face test.

Tuesday, August 02, 2016

Market failure, not lack of competition drives telecom infrastructure deficiencies, disparate access

Charter, Comcast, AT&T Really Want To Stall Chance Of Competition From Google Fiber – Consumerist: As we’ve seen over and over again, high-speed broadband competition is hard to come by in huge swaths of the country. And one reason for that is because incumbent companies, especially AT&T, have a habit of throwing their weight around when competition does finally (try to) come to town. Meanwhile, though, it remains the best chance for consumers: both Comcast and AT&T charge less for their service in cities with Google’s super-speedy competition.
"Lack of competition" continues to be proffered as the primary rationale for America's telecommunications infrastructure deficiencies and disparate access. But that's the wrong analysis for the simply microeconomic fact that telecommunications infrastructure connecting customer premises is not and will never be a competitive market with many sellers and many buyers. The cost barriers to entry for would be competitors are too high. That's why one doesn't typically see multiple natural gas, water or power lines serving a given premise. It would be ridiculously wasteful and make it even harder for the builder of that second or third connection to achieve a return on their investment in a reasonable time frame.

The real reason the United States suffers from less than world class infrastructure connecting all homes, businesses and public institutions is excess reliance on investor-owned infrastructure providers overly prone to market failure. Since the microeconomics don't work, they can't meet the buyer side demand for affordable access even as it grows exponentially. They simply cannot make a decent return on investment, so they naturally don't invest in infrastructure. Not because they "refuse" to as many analysts claim. Because they simply can't afford to, whether it be AT&T, Comcast, or Google Fiber.

Wednesday, March 16, 2016

Time to punch the reset button on U.S. telecom infrastructure

AT&T, Comcast Kill Local Gigabit Expansion Plans in Tennessee | DSLReports, ISP Information: For some time now municipal broadband operator EPB Broadband (see our user reviews) has been saying that a state law written by AT&T and Comcast lobbyists have prevented the organization from expanding its gigabit broadband offerings (and ten gigabit broadband offerings) throughout Tennessee. These state laws currently exist in more than twenty states, and prohibit towns from deploying their own broadband -- or often even striking public/private partnerships -- even in cases of obvious market failure. A proposal that would have recently lifted this statewide restriction in Tennessee was recently shot down thanks to AT&T and Comcast lobbying. Even a new compromise proposal (which would have simply let EPB expand slightly in the same county where it is headquartered as well as one adjoining county) was shot down, after 27 broadband industry lobbyists -- most of whom belonging to AT&T and Comcast -- fought in unison to kill the proposal.
It's understandable the legacy telephone and cable companies want to keep out interlopers who might threaten their de facto monopolies for Internet service. The incumbent protectionism on display in Tennessee plays out in multiple states in the form of laws barring public sector involvement in telecom infrastructure projects or as this month in California and Kentucky, efforts to block fiber to the premise (FTTP) projects from gaining access to utility poles. This obstructionism isn't going to go away and requires a major reset in order for it to come to an end.

As I wrote in my recently issued eBook Service Unavailable: America's Telecommunications Infrastructure Crisis, the nation is already two decades behind where it should be relative to replacing its legacy metal wire telecom infrastructure with FTTP. The book proposes the federal government construct universal FTTP as public works. As roads and highway were to the 20th century, it's vital infrastructure for the 20th that's too important to be left in control of the legacy incumbents. It's time to punch the reset button so the United States can move forward to the future.

Friday, March 11, 2016

Google fights AT&T, Comcast over Bay Area Google Fiber service - San Jose Mercury News

Google fights AT&T, Comcast over Bay Area Google Fiber service - San Jose Mercury News: MOUNTAIN VIEW -- Google's plan to bring ultrahigh-speed Internet service to the Bay Area has run into a decidedly nontech hurdle: utility poles. To roll out Google Fiber in five Silicon Valley cities, the tech giant needs access to the poles for stringing up fiber cable. But in several cities a who's who of Google competitors are standing in the way. The outcome of the pole fight is likely to have a profound effect on which communities get Google Fiber and which don't. "The infrastructure needs to be mostly above ground," said MoffettNathanson Research analyst Craig Moffett. "You can't proceed ... if you don't have pole access." Similar battles have played out in other cities across the nation, slowing Google's multibillion-dollar program while competitors push forward with their own gigabit-speed offerings.

This illustrates the death by thousand cuts delaying strategy of the legacy incumbent telephone and cable companies to protect their service territory monopolies from interlopers offering telecommunications infrastructure far superior to their own. Those legacy dinosaurs have armies of attorneys prepped to spend years if not decades in the courts erecting legal speed bumps to slow the progress of new entrants like Google Fiber.

Some observers believe the U.S. Federal Communications Commission's promulgation of its Open Internet rules in 2015 deeming Internet service providers common carrier utilities would make pole access easier. But so did others when Congress amended the Communications Act in 1996 to allow competitive local exchange carriers (CLECs) the right to use incumbent telephone central offices and cable plant to offer competing telephone and DSL services that was just emerging in the late 1990s. The incumbent telcos took a decidedly uncooperative and litigious stance to hamstring those providers as well.

These incumbent delaying tactics deepen America's telecommunications infrastructure crisis because they push a nation that's already a generation behind where it should be in terms of replacing its legacy metal cable system with fiber to the premise (FTTP) even more behind the curve. The situation calls for aggressive federal intervention in the form of a crash program to modernize and build out this vital telecom infrastructure to serve the nation's needs in the 21st century.

Saturday, December 12, 2015

Comcast's and AT&T's "unfair competition" complaints unfounded

Marion County cities call for broadband extension | Times Free Press: Telecommunications providers such as Comcast and AT&T have lined up solidly against allowing municipal providers to expand. They say it's unfair for government-owned services to compete against private industry.
Comcast and AT&T would have a valid complaint if telecommunications infrastructure was a competitive market. Their problem is it's not. It functions as a natural monopoly due to high cost barriers to entry that keep private competitors out. Natural monopolies lend themselves to direct government provision of services (such as as highways) or government granted franchises such as the old Bell Telephone system and local cable franchises. If AT&T and Comcast want to compete, they should get into the grocery, airline or automobile industries.

Friday, September 04, 2015

Cable companies facing enormous shifts in market, regulatory environments

Cable companies like Comcast, Time Warner and others are facing enormous shifts in the market and regulatory environment that are likely to prove very challenging to navigate going forward. Earlier this year, the U.S. Federal Communications Commission subjected cable companies to Title II of the Communications Act in its Open Internet rulemaking deeming Internet service providers -- cable companies top the list measured by total customer premises served -- common carrier telecommunications utility providers under Title II. 

That's hugely incompatible with cable's business model based on offering subscriptions to bundles of TV channels to selected -- and not all -- customer premises in their service areas. At the same time as this regulatory sea change is occurring, the marketplace is also being disrupted as consumers increasingly shun these offerings.

Cable's subscription-based model is far better suited to the FCC's previously adopted classification of Internet service as a specialized information service -- and the cablecos' market positioning of themselves as entertainment and not telecommunications providers. Now it's gone except in the unlikely event the courts step in and restore it. Meanwhile, consumers are turning elsewhere for video entertainment.

Friday, July 31, 2015

Early indications that FCC not enforcing Title II Internet universal service, anti-redlining provisions


--FCC accepts AT&T assertion of Title II compliance on its face

--Consumer complaint against Comcast closed despite demand for $535,000 to establish Internet service

 

Earlier this year, the U.S. Federal Communications Commission deemed Internet service a common carrier utility under Title II of the Communications Act and thus subject to the law’s universal service and non-discrimination obligations. New FCC rules implementing the policy became final on June 12, 2015 and withstood judicial petitions by large telephone and cable companies and their trade associations to block them from taking effect.

Going forward, it remains to be seen whether the FCC will enforce Title II universal service and anti-redlining requirements against the large, dominant telephone and cable companies that provide much of the nation’s premise landline Internet service in tightly proscribed “footprints” within their service areas. Early indications are that the FCC is opting to not enforce these requirements even though it specifically declined to forbear their enforcement in its March 12, 2015 Open Internet Order and Rulemaking, finding that doing so would not be in the public interest. Harold Feld of Public Knowledge termed universal service “the quintessential common-carrier obligation.”

Nevertheless, it appears the FCC rather than enforcing key Title II obligations is choosing to merely pass complaints of violations on to providers and then summarily closing them out once the provider communicates with the complainant. I offer my own experience as evidence.

On June 15, 2015, I attempted to place an online order for Internet service for my home office premise in Northern California and received this screen:



I also obtained the following communication from an AT&T agent in a June 15, 2015 online chat session:

Agent: Unfortunately, neither AT&T Business U-verse nor DSL services are available in your area. There may be several reasons why AT&T Business Internet Service is not available in your area. The most common reason is that there are a set number of ports to deliver service in each area, and we've reached capacity. It's also possible that your business is outside of the range to receive service.

A subsequent attempt to order a small business bundle of phone and Internet service resulted in this email from AT&T:

Dear Fred Pilot,
I'm sorry but internet services are not available to this address at this time. Do you want to continue with the phone line and long distance order?
Thank you for choosing AT&T.

Sincerely,

Shelley Zeigler
AT&T Small Business Online
 

* * *

I filed a complaint with the FCC on June 15, 2015 contending AT&T by failing to fulfill my order for Internet service was in violation of the FCC's recent Open Internet Order and specifically Title II SEC. 201(a) of the Communications Act that requires common carriers to "furnish service upon reasonable request therefor."

On July 30, 2015, I received this update from the FCC:

Hi Frederick,
Your Ticket No. 342043 was served on your carrier for its review and response.
Your carrier has provided the FCC with a response to your complaint. You should receive a copy of the response from the carrier within 7-10 days via postal mail. As such, no further action is required. Your complaint is closed.
Thank you for your complaint and help in furthering the FCC’s mission on behalf of consumers.

*  *  *

On July 18, 2015 I received an email from the manager of the AT&T Office of the President stating that AT&T reviewed my complaint and “determined that neither DSL or U-verse are available at this time,” adding that “AT&T also finds that it is not in violation of the Open Internet Order referenced in the FCC complaint.” 

Bottom line: The FCC closed the case based on AT&T’s assertion that it is not out of compliance with Title II SEC. 201(a). The FCC’s position appears to be we’ll accept AT&T’s word it’s in compliance with the law and move on. That’s hardly what could be termed enforcement by an entity established as a regulatory agency.

Since Comcast also nominally serves my ZIP Code, I also attempted to order Comcast’s 25Mbs Internet service from its consumer website. The site responded “The address you entered could not be recognized” and offered four other addresses in my ZIP Code with numbers matching my own. A few days later, Comcast left a voice mail stating my address was "not serviceable."

I filed a complaint with the FCC alleging Comcast was in violation of Title II Section 201(a) and a ticket was opened. Subsequently, Comcast sent me an email indicating Comcast could service my address if I paid $535,000 to expand its network:


To: Frederick Pilot
Sent: Monday, June 29, 2015 8:58 AM
Subject: RE: Comcast/ESL01973870/Pilot/AE  
Good Morning Mr. Pilot,   I hope your weekend was well. I have just received word from our serviceability team. The serviceability team has confirmed that your address is over a mile from Comcast’s nearest network. The estimated cost to have the Comcast network expanded to your home is $535,000.00. 
Kind regards
Alyssa Executive Customer Relations Comcast | West Division Office: 1-888-966-7794 Ext. 3007906 M-F: 8:00a – 4:30p PDT        


Another email from Comcast clarifying that I (and not Comcast) would have to bear the cost:


WST - Comcast Executive Customer Relations 5
Jun 29 at 10:06 AM
To:  Frederick Pilot
Mr. Pilot,   If you would like to discuss paying the estimated fee of $535,000.00 to have the lines ran to your home I can get you in touch with our construction team. Please let me know how you’d like to proceed.
Alyssa Executive Customer Relations Comcast | West Division Office: 1-888-966-7794 Ext. 3007906 M-F: 8:00a – 4:30p PDT

*  *  *

I added these emails to my FCC complaint file, pointing out the demand for such a large sum in order to provide Internet service potentially violates two additional Title II provisions:

  • Section 254(b)(3) requiring Internet Service Providers to provide access to advanced telecommunications in all regions of the nation at rates that are reasonably comparable to rates charged for similar services in urban areas.
  • Section 202(a) of the Communications Act insofar as it is an unjust, unreasonable and discriminatory charge in order to effect a common carrier communications connection per Section 202(b). 

Apparently this additional information didn’t pique the interest of the FCC, which closed out the complaint on July 17, 2015:


FCC Consumer Complaints July 17, 2015 08:29

Hi Frederick,
Your Ticket No. 351820 was served on your carrier for its review and response.
Your carrier has provided the FCC with a response to your complaint. You should receive a copy of the response from the carrier within 7-10 days via postal mail. (None was received as of 7/31) As such, no further action is required. Your complaint is closed.

Thank you for your complaint and help in furthering the FCC’s mission on behalf of consumers. 


A follow up query to the FCC asking why the complaint was closed produced no response.