Despite Gigabit Hype, U.S. Broadband’s Actually Getting Less Competitive Than Ever

by Karl Bode

Despite government programs, national broadband plans, billions in subsidies and a lot of recent hype paid to gigabit services like Google Fiber, U.S. broadband is actually getting less competitive than ever before across a huge swath of the country. Companies like AT&T and Verizon have beenbacking away from unwanted DSL networks they simply don’t want to upgrade. In some cases this involves selling these assets to smaller telcos (who take on so much debt they can’t upgrade them either), but in many markets this involves actively trying to drive customers away via either rate hikes or outright neglect.

As an end result, the nation’s biggest cable companies are enjoying a larger monopoly in many markets than ever before as they hoover up those fleeing customers. According to the latest postmortem of 2015 subscriber totals, the seventeen largest broadband providers acquired 3.1 million broadband subscribers last year. But if you look at the numbers more closely, you’ll notice that nearly all of them were acquired by the cable industry: Continue reading

Google Fiber TV Subs ‘Astonishingly Low’: Analyst | Multichannel

 

By: Jeff Baumgartner

 

Google Fiber’s ambitions have drawn both bearish and bullish views from analysts, but new data from the U.S. Copyright Office shows that the initiative is not yet setting the world on fire, at least with respect to the number of video customers who have signed on so far. 

Google Fiber ended 2015 with just north of 53,000 video subs, according to a blog post from MoffettNathanson analyst Craig Moffett that pointed to fresh data from the U.S. Copyright Office.

The number’s a bit of a mixed bag. In Moffett’s view, Google Fiber’s rate of video growth is strong, but should be stronger.  Continue reading

AT&T sues City of Louisville over Google Fiber pole attachment rules

Stephen Hardy
English: Telephone pole, Westwood

English: Telephone pole, Westwood (Photo credit: Wikipedia)

As one of the communities Google Fiber has selected for potential provision of its gigabit fiber to the home (FTTH) services (see “Google Fiber sets FTTH sights on three new cities”), Louisville officials had passed unanimously a “One Touch Make Ready” ordinance that would enable Google Fiber and other broadband services providers in the future to access city utility poles and attach the necessary hardware to provide services themselves. AT&T owns between 25% and 40% of those poles, the Courier-Journal reports, and the ordinance potentially would allow its competitors to move AT&T’s equipment on the pole to make room for the new infrastructure. Continue reading

Google Fiber Joins Forces with Municipal Broadband Network

Huntsville is doing it right. They can attract Google and other service providers to utilize their fiber infrastructure while seeing a modest return on investment. Citizens benefit from better services and price competition. I hope that more municipalities start utilizing this model.

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Google Fiber said on Monday that it plans to bring its gigabit Internet service to Huntsville, Alabama. But instead of laying its own fiber, Google will offer service over a network that is being built by the city-owned Huntsville Utilities. Huntsville will lease space on the network to Google so it can offer Internet service. But it’s not an exclusive deal, so other Internet providers could offer broadband over the same fiber. Huntsville, a city of nearly 190,000 residents, has been planning the fiber build for more than a year.

City officials “see it as a low-risk investment, as compared to administering the gigabit Internet themselves, which would require a massive increase in personnel in an arena where they have limited expertise,” local news station WHNT reported today. Google Fiber should be available to the first Huntsville customers by the middle of 2017, but it could take a few years to extend service throughout the city, the report said. Continue reading

FCC Narrowly Misses Its Gigabit Deployment Goal

by Karl Bode

Back in 2013, then FCC boss Julius Genachowski issued a “1 Gbps challenge”: basically a pledge to ensure there was at least one gigabit network operating in all fifty states by 2015. As we noted at the time it was kind of a show pony goal; notorious fence-sitter Genachowski was simply setting a goal he knew the industry would probably meet with or without’s government help, so that government could come in at a later date and insist it played an integral role.

Well, 2015 has come and gone, and while there is at least one gigabit network planned for every state, we narrowly missed Genochowski’s goal by most estimates:

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We combed through our archives and other online resources and, by our tally, at least one network operator has announced plans to offer gigabit service in every state. Not all of these networks are actually deployed or supporting service yet. But generally network operators don’t announce specific markets more than a year or two in advance of when they expect to deliver service.


Continue reading

All Residents Need A Broadband Choice

English: The Penmynydd high-speed broadband tr...

English: The Penmynydd high-speed broadband transmission mast viewed from the churchyard (Photo credit: Wikipedia)

Despite the fact that Internet access speeds are increasing on average, there are still almost 40% of Americans without broadband service. I know this because my parents live just a few minutes out of a state capital and do not have any access to any wired broadband service. There is no easy answer to this solution because serving these rural areas is expensive.

Building the last-mile infrastructure is the most costly part of the build. Carriers are challenged to be profitable building out rural areas even if they had a 100% market share. This is why the Universal Service Fund was created. Instead of all customers subsidizing rural communities, local governments and carriers should be allowed to form a public/private partnership to build an open-access last-mile fiber infrastructure. All carriers could then utilize this infrastructure to provide competitive communications services to potential customers no different than in densely packed urban areas. This method is fairer to all parties and does not put taxpayers at as much risk. Continue reading

FCC Chair: 39% Of Rural America Lacks Broadband Access

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If you live in the city, it’s almost a certainty that your property can get high-speed Internet access from at least one company. But for rural America, it’s a different story, with nearly 4-in-10 people lacking access to fixed-line broadband service.

This is according to FCC Chair Tom Wheeler, who will issue his latest annual Broadband Progress Report later this month. Continue reading