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Fast, affordable Internet access for all.
It’s good for our economy when companies make money and hire workers. But while small businesses continue to struggle in this economy, the cable and phone companies achieved extremely healthy profit margins. If the Great Recession didn’t stop these ISPs from making big profits, how could they be hurt by sensible consumer protections to keep the net operating just like it always has?Well, seeing as how seat belts destroyed the automobile industry... and then air bags also destroyed the automobile industry... and CAFE standards destroyed the automobile industry.... wait -- all of these predictions were false. Perhaps we should not base important policy decisions upon the dire predictions of self-interested parties who are obligated to put self-interest ahead of the public interest. I was saddened to see that the paper suggest "we need" the private companies to build these networks. Point of fact, not only do we not "need" them to do it, we "need" to wake up to the fact that even when they do the best they can, it is second best to networks built by those who put the public interest first. Compare the networks of communities like Salisbury, NC; Monticello, MN; Lafayette, LA; and Chattanooga, TN, to the joke AT&T calls U-Verse and the stronger offers of FiOS. The private sector cannot be trusted to build the infrastructure we need. Addendum: I should note that while infrastructure must be managed in the public interest, I do believe the private sector should have a strong role as service providers operating on top of an open access platform.
The safety lecture continues... "In the unlikely event…" This is a very suspect phrase! Especially, coming as it does, from an industry that is willing to lie about arrival and departure times!After reading Larry Press' account of ordering DSL from Verizon, I couldn't help but wish George Carlin were still with us and also a giant broadband geek. Larry Press' account on dealing with Verizon should be read in full, but this is what got me thinking:
Last week I ordered 7 mbps service from Verizon, but, after they switched it on, I was only getting about 1.5 mbps. I assume there were tons of retransmission errors due to an overly aggressive modulation scheme. When I called to complain, a Verizon "technician" kept me on the phone … [and finally] got his bosses permission to schedule a "truck roll" to come to my house and fix the problem. The minute the driver arrived, he told me that, at 9,000 feet from my central office, there was no way I was going to get 7 mbps.We have long known that Verizon and similar companies are similarly willing to lie about their available broadband speeds (yah, I know, I'm no Carlin). As I recently testified in a MN House hearing, the Connected Nation maps systematically overstate available broadband (particularly for DSL). And of course they do - Verizon doesn't even know what it can achieve at each premises (thought it damn well should know what it cannot offer 9,000 feet from the DSLAM). The dumb question is: Does Verizon actually maintain a database of what it could really offer, in real world conditions, to each house (or what speeds are actually achieved when they take service).
Even J.P. Morgan couldn’t get independently-owned railroads to agree not to compete with one another in the late 19th century. Not that he didn’t try. In 1890 one of Morgan’s associates was excited by the prospect of a Western Traffic Association that would include a director from each railroad and set uniform rates: “Think of it - all the competing traffic of the roads west of Chicago and Saint Louis placed in the control of about 30 men!” But the effort fell apart because some of the independents insisted on cutting rates and invading each other’s territories.Cable and fiber-optic networks, as with railroads, have natural barriers to entry because the costs of building a network are very high; entrenched incumbents have nearly all the advantages should any competitor have the resources to surmount the barrier of sky-high upfront capital costs. In short, the market cannot self-regulate. We have a number of choices:
Brogan said that if Lancaster is selected, it would not run afoul of the state Telecommunications Act. That law prohibits cities from establishing municipal broadband networks except if existing providers indicate they have no immediate plans to offer similar services. She said the city already has a letter from Verizon clearing the way for the Google application.Oh good, glad the city secured permission from one private company to ask a different private company to build infrastructure. In the words of Yakov Smirnoff, "What a Country!"
"Every entity we need to work with is already a stakeholder; we're ready to go," he said. "And we will use revenues for expansion and build out. We're trying to expand the concept of a service provider and services beyond just the triple play, voice-video-data," he said. "Telemedicine is a service, hospitals are service providers. We want to take fiber to every home and every business, then connect them to libraries, schools and job services so they can take advantage of programs to help lift them up."Local jobs are at stake and incumbent providers are doing little to help:
Quest [Aircraft], who builds the Kodiak airplane, they've gotta exchange large engineering files in real time; 250 jobs are at stake.Verizon is busy trying to offload all of its rural territories on Frontier (a company famous for slow and poor service) so it isn't about to upgrade facilities in Idaho.
The summary indicated that total funding costs have decreased from $11,615,791 in December 2008 to $10,663,410 in December 2009. Shaw estimates that operating income would make the system financially feasible after the third year and could enable the city to pay off its debt in 15 years vs. 16 years as had been predicted two years ago.A press release from Uptown Services, a broadband consulting company provided some history:
They originally hired Uptown in 2004 to complete a broadband feasibility study. The results of that study were promising, but the City chose to wait for the economics to improve as the technology matured and costs came down over time. Uptown completed a refresh of the original study in 2008. The case had improved, but the City wanted to fine tune the cost estimates through the completion of an actual system design prior to making any final decisions on a City wide deployment. Uptown was selected in 2009 through an RFP process from a slate of qualified proposals to complete this design.Judging from the local site explaining the networks, they really understand the power of publicly owned broadband. The FAQ include this gem:
Remember this critical point: The incumbents look for a profit and answer to their shareholders, while the City of Dover looks for the betterment of the community and answers to its citizens.They city has Verizon and Comcast as incumbents respectively. I suspect Dover is one the thousands of communities Verizon is trying to dump on Frontier Communications rather than invest in smaller communities. The stumbling block currently appears to be deciding how to finance the proposed network.
Town Manager James Purcell said the main infrastructure that will be installed will be the beginning, and likened the expenditure to paying for the installation of a major sewer line with stubs to various buildings.
He said he expects the city to apply for federal stimulus money in the first part of the year to move toward that goal. In addition to improving broadband access in homes, the initiative could help Seattle City Light implement smart-grid infrastructure, and improve public safety communications.Another article further notes their shared ambition:
"Mayor-elect McGinn ran on a platform of bringing fiber to every home and business in Seattle, something I've advocated for several years," Schrier commented.No post discussing broadband in Seattle is complete without a reference to Glenn Fleishman - who both wrote another story discussing the situation and then patiently responds to many comments in the thread below it. Discussing Tacoma's publicly owned Click! network, he notes that Tacoma's investment benefited everyone:
Click being built actually helped what has become Qwest and Comcast: by creating a market and making it feasible for professionals who need high-speed Internet access in Tacoma to live there, Click spurred the two incumbents to improve their networks, compete, and gain new revenue. Comcast actually thanked Tacoma Power publicly years ago; not sure it would today, but it was seen as a big boost for the viability of competitive broadband.Photo used under creative commons license from flickr.