As demand for broadband Internet access grows, California municipalities and counties will invariably find themselves under pressure to amend franchise agreements with cable companies like Comcast to require them to extend service to neighborhoods lacking cable access. Even areas where AT&T and other telcos provide broadband via Digital Subscriber Line (DSL) could clamor for cable service since it offers a proven bundle of television and Internet access at speeds higher than DSL.
But if they do, will Comcast and other cable providers tell California local governments to take a hike and opt to obtain a statewide franchise under legislation that took effect earlier this year, the Digital Infrastructure and Video Competition Act of 2006?
Enacted last year as AB 2987, the law allows both cable and telephone companies to bypass local governments and instead obtain authority to offer video-capable broadband through franchises issued by the California Public Utilities Commission (CPUC). But AB 2987 also allows cable companies to operate under existing local government franchise agreements if they choose. So far, Comcast is doing just that and has not applied for a statewide franchise from the CPUC. (To date, only one cable provider, Cox Communications, has applied for a statewide franchise.)
If enough California local governments pressure Comcast to build out its cable plant to provide service to more neighborhoods, Comcast could well opt for a state charter under AB 2987. The reason: the law has very limited build out requirements that require providers serve only half of their regional service areas by 2012. Opting for a statewide franchise would provide Comcast and other cable providers an easy exit from local political pressure to expand broadband access.
Analysis & commentary on America's troubled transition from analog telephone service to digital advanced telecommunications and associated infrastructure deficits.
Sunday, May 06, 2007
U.S. senator secures federal funding for Vermont open access fiber network
Designed by Northern Enterprises, the network will be "vendor neutral," meaning private companies offering high-speed Internet access, telephone service or other telecommunications services will be able to use it for a fee, instead of building their own infrastructure, officials said.
Leahy, D-Vt., helped secure $500,000 in federal funding for the first phase of the project and $3 million in economic development grants for the network.
Friday, May 04, 2007
Broadband "number one" priority for FCC, Chairman Martin tells forum
"I think broadband is the number one priority for the commission and the additional deployment of it," said Martin. Broadband technology can drive economic growth and impacts areas such as health care delivery and education, he said. The FCC has done work to try to foster additional infrastructure investment and some increased competition in broadband, he said.
Wednesday, May 02, 2007
Sorry, wrong number: AT&T tells would be residential broadband customers to go suck a satellite
If you're an AT&T residential customer who's been waiting for years for broadband, indications are you're going to have to continue to wait some more. Hapless residential customers who visit AT&T's Web site to check on the availability of AT&T Yahoo! High Speed Internet get this message if it isn't:
AT&T Yahoo! High Speed Internet
The satellite service is from satellite Internet provider WildBlue. AT&T entered into a reseller deal with WildBlue about a year ago to sell the inferior (compared to what AT&T could offer if it chose to seriously invest in its wire line infrastructure), costly satellite service in areas it has written off over the foreseeable for wire line broadband.
Keep in mind this is from the same AT&T that boasts "Your world delivered" and actually believes it can provide television service over the same tired copper cable-based system that can't even support DSL let alone IPTV.
AT&T Yahoo! High Speed Internet
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The satellite service is from satellite Internet provider WildBlue. AT&T entered into a reseller deal with WildBlue about a year ago to sell the inferior (compared to what AT&T could offer if it chose to seriously invest in its wire line infrastructure), costly satellite service in areas it has written off over the foreseeable for wire line broadband.
Keep in mind this is from the same AT&T that boasts "Your world delivered" and actually believes it can provide television service over the same tired copper cable-based system that can't even support DSL let alone IPTV.
Qwest holds off IPTV in favor of residential high speed Internet access
Qwest CEO Richard Notebaert tells Bloomberg his company is holding off offering video over phone lines, concentrating instead on accelerating residential broadband Internet access.
It's a wise move on Notebaert's part. Residential customers need high speed Internet access first and foremost. Telcos like Qwest should be prioritizing it and speeding deployment considering they didn’t offer DSL in more than 20 percent of their service areas as of mid 2006, according to the Federal Communications Commission.
If and when Qwest wants to offer wire line-based TV service, it would be well advised to follow Verizon and utilize fiber optic cable rather than a hybrid fiber/copper play in the early stages of deployment by AT&T, dubbed Project U-Verse.
High definition TV itself needs about 9Mbs. Getting that much data over twisted copper pair that comprise the last segment of U-Verse that was originally designed to provide plain old telephone service (POTS) packaged with telephone and high speed Internet service could well prove problematic. Notebaert is in a position to watch it fail on someone's else's dime instead of investing his own shareholders' money.
It's a wise move on Notebaert's part. Residential customers need high speed Internet access first and foremost. Telcos like Qwest should be prioritizing it and speeding deployment considering they didn’t offer DSL in more than 20 percent of their service areas as of mid 2006, according to the Federal Communications Commission.
If and when Qwest wants to offer wire line-based TV service, it would be well advised to follow Verizon and utilize fiber optic cable rather than a hybrid fiber/copper play in the early stages of deployment by AT&T, dubbed Project U-Verse.
High definition TV itself needs about 9Mbs. Getting that much data over twisted copper pair that comprise the last segment of U-Verse that was originally designed to provide plain old telephone service (POTS) packaged with telephone and high speed Internet service could well prove problematic. Notebaert is in a position to watch it fail on someone's else's dime instead of investing his own shareholders' money.
Broadband boondoggle: Congressional committee peeved over misdirection of USDA funding
Members of the House Agriculture Committee are unhappy with the administration of the U.S. Department of Agriculture's Rural Utilities Service after learning the program to expand broadband Internet services to rural communities has missed many unserved areas while channeling millions to broadband providers in places where service already exists.
The Washington Post has been looking into the program, which provides grants, loans and loan guarantees to expand housing, small business, water and sewer, electricity and telecommunications services in rural areas.
The Washington Post has been looking into the program, which provides grants, loans and loan guarantees to expand housing, small business, water and sewer, electricity and telecommunications services in rural areas.
Tuesday, May 01, 2007
Cisco working with West VA gov on broadband solution
West Virginia remains one of America's darkest broadband black holes. The Associated Press reports Gov. Joe Manchin is working with Silicon Valley-based router powerhouse Cisco on a plan to provide broadband to all West Virginia residents by 2010.
Manchin recently vetoed legislation that would have mapped which areas in the state aren't wired for broadband service and allowed nonprofits to offer broadband service throughout the state.
While the efforts of Cisco CEO John Chambers to light up this infamous broadband black hole are laudable, I hope he doesn't neglect Cisco's own back yard in Silicon Valley and California. As reported last year, Rob Hof, manager of BusinessWeek's Silicon Valley bureau, inadvertently found himself mired on the wrong side of the digital divide Palo Alto when he moved to a new home in the city.
Manchin recently vetoed legislation that would have mapped which areas in the state aren't wired for broadband service and allowed nonprofits to offer broadband service throughout the state.
While the efforts of Cisco CEO John Chambers to light up this infamous broadband black hole are laudable, I hope he doesn't neglect Cisco's own back yard in Silicon Valley and California. As reported last year, Rob Hof, manager of BusinessWeek's Silicon Valley bureau, inadvertently found himself mired on the wrong side of the digital divide Palo Alto when he moved to a new home in the city.
Concerns raised over Florida broadband franchise bill
The bill bans the government from forcing utilities to build out their infrastructure to offer services to all neighborhoods. But it also names the attorney general as the agent responsible for enforcing antidiscrimination rules, giving the office the power to fine utilities not in compliance.
The antidiscrimination provision seems to be open to some interpretation, with the antibuildout language giving companies accused of discriminating a strong leg to stand on.
Brad Ashwell, consumer advocate for Florida Public Interest Research Group, said that while rates may drop initially, he expects gradual increases over time. "This bill doesn't guarantee that everyone is going to be served or enjoy the benefits of 21st century technology."
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