AT&T launches ultrafast Internet service in Cupertino - ContraCostaTimes.com

AT&T launches ultrafast Internet service in Cupertino - ContraCostaTimes.com: It's also unclear just who in Cupertino will be able to receive the GigaPower service. At launch, the service is available at "several thousand" homes in the city, said Terry Stenzel, vice president and general manager of the Northern California and Reno region for AT&T. But Stenzel declined to give an exact number or say what percentage of the 20,000 households in the city or what neighborhoods have access to the service, citing competitive reasons.

"They're unwilling to tell anybody. Not even me," Mayor Sinks said.

Cupertino doesn't have any commitment from AT&T to offer service to all areas of the city or to bring service to government buildings, schools or hospitals, Sinks said.

"They've stopped short of any commitment on that," he said.

Now that the U.S. Federal Communications Commission has adopted rules this month classifying Internet as a universally available common carrier telecommunications service, it's going to be more difficult as time goes on for dominant providers to cherry pick and redline neighborhoods as is being done here.

Open access fiber networks offer way to boost access to Internet services

The United States suffers from costly and disparate Internet access due to a vertically integrated business model based on the old copper telephone network. Under that model, the network infrastructure and the telecommunications services sold over it are provided by a single company such as AT&T or Verizon. It’s the same model used by cable companies, where the network operators that bring the cable to customer premises “own” the customer and bill for separate or bundled services on a monthly subscription basis. Google Fiber also operates under this business model.

That business model is inherently limited because it can expand and upgrade service only to the extent new customers and revenues can be added quickly enough to generate a rapid return on the money invested to build out the infrastructure. That circumstance and the high cost of constructing telecommunications infrastructure naturally make telcos and cable companies very conservative when it comes to expanding their networks.

That risk aversion in turn has brought about widespread market failure. There are potential buyers clamoring for service but the telephone and cable companies decline to provide it. This is essentially where the U.S. has been stuck for the past decade, creating massive frustration for consumers and for state and local governments hoping to improve Internet telecommunications access that has grown increasingly vital for their communities and economies.

Fortunately, there is a way out of the mire with open access fiber networks as Andrew Cohill of Wide Open Networks explains in this article appearing in the March/April issue of Broadband Communities magazine. Highly recommended reading for government officials and consumers.

As health care goes online, Internet infrastructure takes on greater importance

Internet Backup Options Can Be Pricey, Complicated - Data Centers on Top Tech News: Disruptions to Internet service can and do happen for many reasons, ranging from hacker attacks to solar storms. With online access vital for so many services today, such interruptions can be far from merely inconvenient.

Last month's vandalism in Arizona, for example, raised "major implications for telehealth in northern Arizona," according to the Arizona Telecommunications & Information Council. That's a concern for many rural and tribal communities for whom phone and Internet services can be the primary means of accessing health care.

San Antonio’s size proving to be a challenge for Google Fiber - San Antonio Business Journal

San Antonio’s size proving to be a challenge for Google Fiber - San Antonio Business Journal: One of the challenges for Google is developing the infrastructure needed to support a new fiber-optic network, including a system of equipment shelters. That process is complicated because of land mass and topography.

But Google officials insist that the company continues to work with San Antonio officials and expects to have a progress report on the Alamo City’s expansion status before the end of the year.

Reading between the lines, it appears Google Fiber is facing the classic demand muni officials have made of cable providers in franchise negotiations, i.e. that the providers serve all addresses and not just some per Google Fiber's walled garden "fiberhood" infrastructure deployment strategy.

As Google Fiber looks to expand, it will likely increasingly confront this demand and choose to walk away, especially if state public utility commissions back up local governments by enforcing the U.S. Federal Communications Commission's recently adopted rules designating Internet services as common carrier utilities subject to a universal service mandate. That factor along with its limited financial resources to build costly telecommunications infrastructure will significantly limit Google Fiber's U.S. expansion under its current "own the customer" business model.

AT&T hopes to squeeze more milk from the pay TV cow to boost earnings and pay dividends -- not to fund network CAPex

New Services Cloud AT&T’s Bet on Pay TV - WSJ: AT&T Inc. knew it was buying a melting ice cube when it agreed to acquire satellite-TV company DirecTV last year for $49 billion. But recent moves by HBO, Apple Inc. and the National Football League have turned the temperature up a few degrees.

A wave of new TV services delivered over the Internet allow Americans to get prime programming like the hit HBO series “Game of Thrones” and ESPN sports without paying a big cable or satellite bill. That, in theory, means fewer customers for bundles of TV channels like those sold by DirecTV. And unlike cable companies, DirecTV doesn’t have a significant broadband business to fall back on.

AT&T is aware of the risks. Chief Strategy Officer John Stankey says the telecom giant figured when it did the deal that demand for traditional bundles of TV channels probably had peaked. But AT&T is betting the decline will be slower than many people think—a gradual 34-degree melt, as opposed to a 75-degree one— and that it will be able to milk the cash produced by the declining satellite business in the meantime to fund upgrades in its networks. (Emphasis added)

It's an unlikely bet since given AT&T's business structure and strategy. Milking the pay TV cow boosts earnings and pays fat dividends, not CAPex.

FCC Commissioner Pai should resign, get new job as lobbyist or run for Congress

This report courtesy of ExtremeTech:
 

FCC Commissioner Ajit Pai spoke to the House of Representatives on Tuesday, and took the unusual step of requesting that Congress forbid the FCC from using any appropriated funds to enforce its net neutrality ruling.

Pai's entitled to his opinion, of course. But for a sitting Federal Communications Commission member to go before Congress asking it to restrict its funding doesn't pass the smell test of proper protocol respecting the constitutional separation of powers. If Pai wants to appropriate, he should resign his FCC post and run for Congress. Or become a lobbyist. 

UTOPIA holdout cities should adopt broader view of economic benefit of UTOPIA-Macquarie PPP

Orem, Utah and four other cities that have opted out of a public-private partnership between the Utah Telecommunication Open Infrastructure Agency (UTOPIA) and Macquarie Capital Group are now grappling with a fundamental question as to how to finance the future operation of fiber to the premise (FTTP) telecommunications infrastructure to serve their residents. The question: support the partnership’s public works approach to the increasingly essential infrastructure or default to legacy incumbent telephone and cable companies and the poor value and customer service and disparate access they typically offer as monopoly providers.

Six of the 11 cities comprising UTOPIA agreed in concept in 2014 to assess a parcel utility fee to help offset the cost and mitigate the business risk associated the pure subscription-based model used by incumbent providers. They mitigate their business risk by cherry picking neighborhoods believed to have the greatest profit potential for their proprietary network investments while redlining those that don’t.

The utility parcel fee is a key sticking point in negotiations between UTOPIA and the five hold out cities including Orem. A Daily Herald dispatch cites from a memorandum to the Orem mayor and council from Orem City Manager Jamie Davidson:

"There is a concern that Orem is unpredictable and not easy to work with," Davidson said. "It's concerning to me to see new options entering the market [UTOPIA] with a stranded investment for the future."

“However, bottom line, the proposal remains a utility fee-based model,” Davidson said. “If, as a council, you cannot wrap your arms around the assessment of a monthly utility fee to all customers (with potentially a few exceptions, for example, the indigent), nothing else matters.”

Davidson’s right. The parcel fee is essential to making the UTOPIA partnership with Macquarie pencil out by mitigating the business risk of relying solely on customer subscription revenues. UTOPIA operates an open access fiber network, enabling competition among ISPs that want to offer customer premises services delivered over the network. In that regard, the UTOPIA network is like a road or other public works project that benefits and enhances the value of the properties it passes. The UTOPIA cities benefit because these properties can support higher levels of economic activity as well as boosting their market value and, by extension, their ad valorem property tax revenue potential to fund other municipal services.

New Homeowner Has To Sell House Because Of Comcast’s Incompetence, Lack Of Competition – Consumerist

New Homeowner Has To Sell House Because Of Comcast’s Incompetence, Lack Of Competition – Consumerist

A sad tale of a consumer jerked around by incumbents and misled by the U.S. government's "broadband map" -- a major and useless component of the Federal Communications Commission's 2010 "National Broadband Plan."

And the consumer might find it hard to sell his home since not having an Internet connection is increasingly becoming like living off the grid.

Let's hope the FCC's recent policy deeming Internet as a common carrier telecommunications service requiring providers to universally serve all premises can help avoid these kinds of unfortunate circumstances that leave consumers high and dry.