Public utility districts can provide cable TV service, California Court of Appeal rules

In a case of first impression in California, a panel of the California Court of Appeal Third District ruled that the Public Utilities Code permits public utility districts to provide cable television services. The three-judge panel based its opinion on section 16461 of the statute that allows PUDs to "acquire, construct, own, operate, control, or use, within or without or partly within and partly without the district, works for supplying its inhabitants with light, water, power, heat, transportation, telephone service, or other means of communication, or means for the disposition of garbage, sewage, or refuse matter, and may do all things necessary or convenient to the full exercise of the powers granted in this article."

The ruling is significant because it provides solid legal authority for California utility districts to partner with private companies to build open access telecommunications networks over the objections of existing cable providers and telcos who don't want new competitors offering superior broadband services. These networks can provide much needed alternatives to bringing broadband and other advanced digital telecommunications services to areas existing providers choose not to provide and introduce competition that can benefit consumers.

The ruling clears the way for Roseville, California-based SureWest Communications to explore a public/private partership with the Truckee Donner Public Utility District to install a fiber optic-based cable system in the district's jurisdiction, The Sierra Sun reports.

Charter, AT&T draw fire from South Lake Tahoe customers

Charter Communications, the cable provider in the South Lake Tahoe Basin, and AT&T, the incumbent local exchange carrier, are drawing flack over a recent article appearing in the Tahoe Daily Tribune reporting on Charter's service quality problems and poor reception of some TV channels.

One commentator says both companies have left the area in the digital stone ages without advanced digital services and broadband. Another called for Charter to upgrade or get out of the area.

Americans pay 7 times more than Japanese for broadband

Megabit per megabit, Americans pay seven times more than residents of Japan for broadband Internet access. Japanese consumers pay about 70 cents per megabit per second of bandwidth, compared to $4.90 per megabit on average in the U.S., according to Takashi Ebihara, senior director of the corporate strategy department at NTT East Corp. and a visiting fellow at the Center for Strategic and International Studies, a Washington, D.C., think tank.

Why the difference? Unlike the U.S., Japanese government policy views broadband as vital infrastructure and provides economic assistance such as zero-interest or low-interest loans for cities and businesses to deploy broadband as well as tax breaks for the purchase of networking equipment, Ebihara said.

Ebihara, whose company is partly owned by the Japanese government, also credits a more future oriented, patient investment philosophy than in the U.S. "We see the future, and then we do what we feel is right," he said. "[Making low-yield investments is] very difficult for American companies like Verizon and AT&T. They have to answer every quarter to investors."

Sub-broadband option going by the wayside in UK

The BBC reports British Telecom is phasing out Integrated Services Digital Network (ISDN), a fully digital dial up sub-broadband service. ISDN came on the scene almost two decades ago and features two 64kbs channels and can produce a maximum symmetrical connection of 128kbs if both channels are used to connect to the Internet.

The technology is being rendered obsolete by DSL and other "always on" broadband connections, although broadcasters miss ISDN's rock solid stability and audio quality for remote broadcasts.

California PUC grants AT&T franchise

The California Public Utilities Commission announced it has granted a statewide franchise for high speed, video-capable broadband offerings to AT&T under the Digital Infrastructure and Video Competition Act, AB 2987, that took effect earlier this year.

According to PUC President Michael R. Peevey, "Because AT&T's service territory covers approximately 75 percent of the state, a large part of California can look forward to more choices in video programming and service options as a result of today's action."

Don't hold your breath, especially when AT&T can't (or more accurately, won't) provide broadband at any speed throughout much of its service area in California.

Consumer advocates criticize Japan junket by AT&T, California regulators

The Sacramento Bee published a page one story today reporting consumer groups that watchdog utility companies are raising eyebrows over a week long junket to Tokyo by energy and telecom executives accompanied by California Public Utilities Commission officials and the chairs of legislative committees that oversee the two industries. Kenneth McNeely, president of AT&T California, is among those reported on the week long trip.

The trip is being paid for by the California Foundation on the Environment and the Economy, a nonprofit that isn't required to disclose its donations and is run by executives including those of California's major telecommunications and energy companies.

While the consumer groups rightly raise ethical concerns the Japanese junket appears too cozy for comfort with regulators and the regulated likely toasting with shots of sake, there is a potential positive upside. The visiting officials and execs will see first hand that Japan's broadband telecommunications infrastructure is light years ahead of California's. That will drive home how shameful it is that the state that once claimed to be an information technology leader is loaded with broadband black holes where residents continue to be relegated to early 1990s dial up Internet access.

Australian labor party wants to sell Telstra shares to finance national broadband expansion

Australia’s Federal Labor has unveiled plans to raid the Future Fund to build a A$4.7 billion ($3.8 billion) national high-speed broadband network, a New Zealand Herald report said.

The report said under the plan, Labor will sell up to A$2.7 billion ($2.1 billion) worth of Telstra shares held in the Future Fund to help pay for the project.

The project will connect 98% of Australians to broadband services with a speed more than 40 times faster than most current speeds, the report said.

Google unveils Toilet Internet Service Provider (TISP)

Touche to the telco/cable duopoly's broadband black hole excrement!

"Dark porcelain" project offers self-installed plumbing-based Internet access

MOUNTAIN VIEW, Calif., April 1, 2007 - Google Inc. (NASDAQ: GOOG) today announced the launch of Google TiSP (BETA)™, a free in-home wireless broadband service that delivers online connectivity via users' plumbing systems. The Toilet Internet Service Provider (TiSP) project is a self-installed, ad-supported online service that will be offered entirely free to any consumer with a WiFi-capable PC and a toilet connected to a local municipal sewage system.

"We've got that whole organizing-the-world's-information thing more or less under control," said Google Co-founder and President Larry Page, a longtime supporter of so-called "dark porcelain" research and development. "What's interesting, though, is how many different modalities there are for actually getting that information to you - not to mention from you."

Vermont House approves formation of state telecom authority

The state has set a goal of getting reliable cellular telephone service and high-speed computer service known as broadband into every area of the state by 2010. Now, wide swaths of Vermont get no cell signals and computer users must use much slower dial-up service.

The Telecommunications Authority would have the power to float state-backed bonds valued at $40 million to build the poles, towers and other parts of the basic network. It then would lease space on the network to companies that would sell their service to consumers.

The House Commerce Committee was the lead panel in crafting the legislation, which won overwhelming support. Chairman Warren Kitzmiller, D-Montpelier, said the bill "has as much important to Vermont as did the Rural Electrification Act of the 1930s. This bill can have profound impact on every citizen of the state and its economic impact is huge."

Broadband black holes in the Big Apple?

In much of America, market failure and lack of competition have cut off millions from broadband Internet access. It's typically in areas outside of more densely populated urban areas and most acutely felt in rural parts of the nation.

But in New York City, the nation's largest and most densely populated urban center? How can that be? It's apparently so according to this Newsday story that cites aging infrastructure and lack of competition in Big Apple boroughs where the telco/cable duopoly holds the cards.

Broadband over TV spectrum would dramatically alter Internet access

This is the biggest broadband development of the year so far: the potential of using frequencies in the television broadcast spectrum to carry broadband two years from now.

As Eric Bangeman of Ars Technica writes, should tests of the technology being pursued by Microsoft, Intel, Dell and Google succeed, the broadband landscape would be dramatically altered when it comes on the market in early 2009.

"Wireless networks using the spectrum should be relatively easy to deploy, and would provide residents of rural areas easy access to broadband while giving everyone else a third alternative to DSL and cable," Bangeman writes.

AT&T chief's words at odds with company's pathetic broadband deployment efforts

In a recent meeting with AT&T employees in Atlanta, AT&T Chairman and CEO Edward E. Whitacre Jr. admonished them to go the extra mile to serve customers.

“I’m asking you, I’m pleading, don’t let them go until they’re happy,” The New York Times quoted Whitacre as telling AT&T employees. “You just can’t let them go. Hang on till it’s done.”

But rather than hanging in with customers, AT&T has hung out large numbers of them to dry, letting them go years without broadband services and without any meaningful hope of getting broadband anytime soon.

They may be only a mile from existing broadband infrastructure, but Ma Bell won't go the extra mile to provide service as Whitacre as exhorts his workers. Instead, customers are told the system cannot provide broadband because they're too far from a central office, their loop's too long, there's no neighborhood DSL gateway and any number of "no can do" excuses.

While Whitacre may insist AT&T can't "just can’t let them go," that's exactly what it's doing with a sizable segment of its residential customer base.

Analysts question AT&T broadband strategy

Analysts aren't the only ones questioning Ma Bell's broadband strategy, one that can't deliver any broadband services at all let alone IPTV to large portions of her service area.

But there is potential downside for AT&T too, analysts said, particularly when it comes to its closely linked broadband and television strategies. Some analysts assert that AT&T has set itself up poorly to compete in those areas, which are considered essential to the telecommunications product bundle.

In the case of TV, the strategy is called Uverse, and it entails delivering programming over the Internet, called IPTV. But the service has been plagued by delays and glitches and, even now, takes on average more than six hours to install in a home.

"If it cannot be called a complete failure, it's at least struggling," said Phillip Swan, president of TVPredictions.com, a Web site that tracks the television technology industry. He said that if things did not pick up soon, AT&T might have to get back into the acquisition game to buy a TV distributor, like a satellite or cable company.

Newspaper stories suggest AT&T contributions to Schwarzenegger committees linked to AB 2987

The Los Angeles Times and the Sacramento Bee published stories this week suggesting that Ma Bell lavished love on Gov. Arnold Schwarzenegger to the tune of $540,000 for the governor's approval last fall of AB 2987, the Digital Infrastructure and Video Competition Act.

The Times reported AT&T gave a cool half million dollars to Schwarzenegger's After-School All-Stars, a tax-exempt group founded by Schwarzenegger in the early 1990s to provide tutoring, recreation and other programs to poor children.

The Bee reported today in a page one story that eight high level AT&T executives gave $5,000 each to Schwarzenegger's reelection campaign committee in recent weeks.

Both stories contained strenuous denials from the governor's office and AT&T that the cash contributions had anything to do with Schwarzenegger's signature on AB 2987 last October.

The stories put the donations in the context of AB 2987's allowing AT&T to provide television programming and bypassing local governments by putting the California Public Utilities Commission in charge of issuing video franchises. It should be noted however that the cable TV industry also supported AB 2987.

The real issue isn't AT&T's ability to sell television programming since its aged copper cable-based infrastructure cannot reliably transmit Internet Protocol Television (IPTV) service to the vast majority of California households and won't be able to anytime soon. Rather, it's AB 2987's limited build out requirements that allow the telco/cable duopoly to leave vast areas of the state -- ironically many of them inland counties inhabited by Schwarzenegger's fellow Republicans -- without any broadband services whatsoever.

State franchise laws codify the digital divide, consumer advocate argues

A push by the telco/cable duopoly to enact state laws putting states in charge of granting broadband video franchises rather than expanding broadband availability as backers claim will have the opposite effect, a consumer advocate argues.

Ben Scott, policy director of the advocacy group Free Press, told the National Journal's Technology Daily that by allowing telcos and cable companies to pick and choose areas where broadband will be offered, state franchising laws "unfortunately, are going to write the digital divide into law."

Qwest follows dubious AT&T strategy of video over copper via DSL

Western telco Qwest is considering offering IPTV services, the Rocky Mountain News reports. Analysts are skeptical since Qwest faces some of the same challenges as AT&T, which is opting for a similar strategy: Delivering video over a copper-based DSL that can't deliver broadband whatsoever to about a fifth of their multi-state service areas and at sub-video speeds in large segments where service is available.

Fiber may be the future, but copper is now for cable rustlers

Fiber may be the future for telecommunications but for meth-addicted thieves, copper is now:

Verizon spokesman Jon Davies said the company had lost $297,795 in copper since 2006 in California alone, not including money spent on work to replace the wire or loss of service to customers.

"This is a national problem," he said. "We try to keep our cables high on the poles to make it harder to get, but the people who do this are highly motivated, and they have the equipment to get at it."