Surge of Broadband Investment Threatened by Utility Regulation

Patrick Brogan

U.S. broadband providers invested $78 billion in network infrastructure in 2014, according to a new analysis of capital expenditures data for wireline, wireless and cable broadband providers. The 2014 investment expenditure was $3 billion, or 4 percent, greater than the $75 billion invested in 2013 and $14 billion, or 22 percent, greater than the $64 billion invested just five years ago in 2009 amidst the financial crisis.Of the 2014 total, the wireline industry invested $28 billion, or 36 percent of the industry aggregate, compared to 43 percent for wireless and 21 percent for cable.

From 1996 through 2014, broadband providers have made $1.4 trillion in capital investments with wireline providers investing more than $720 billion, or 52 percent of this total, compared to 32 percent for wireless and 16 percent for cable. These surging investment levels have taken place during a period of light regulation, which has come to an abrupt end with the Federal Communications Commission’s (FCC) decision(link is external) to impose public utility rules on broadband providers. It is difficult to predict the near-term impact of this decision on investment, but numerous economic analyses(link is external) forecast negative long-term consequences on investment, innovation and other long-term economic benefits that come with broadband investment. Continue reading

Worst-Connected U.S. Cities in 2014 

The National Digital Inclusion Alliance today releases two new rankings of America’s “25 Worst-Connected Cities in 2014” — for all households, and for households with annual incomes below $35,000.

Using data from the 2014 American Community Survey (ACS) released last Thursday by the U.S. Census Bureau, NDIA ranked all 184 U.S. cities with more than 50,000 households by their percentages of households with no Internet at home. The ACS provides this data in Tables B28002 (“Presence and types of Internet subscriptions in household”) and B28004 (Household income in the last 12 months… by presence and types of Internet subscriptions in household”).  Continue reading

Fiber Optics Now Seen as Default Technology Even for Deployment of Rural Broadband, Says FCC Official

, Publisher, BroadbandBreakfast.com

LEXINGTON, Kentucky, September 16, 2015 – Fiber-optics is now the default mode for deploying high-speed internet throughout the country, even including rural areas, said the head of the Federal Communications Commission‘s office of strategic planning.

Everywhere the country has been able to get an electric line, it ought to be able to get a fiber cable, said Jonathan Chambers, chief of the office, widely regarded as the FCC think tank for technological advancement. Continue reading

Lexington Goes for a Gig

By Masha Zager / Broadband Communities
A view of Keeneland's grandstand at dawn, take...

A view of Keeneland’s grandstand at dawn, taken from the last turn leading into the home stretch (Photo credit: Wikipedia)

The city of Lexington, Ky., is famous for its beautiful horse farms and historic bourbon distilleries but not for its broadband. Internet service there could fairly be described as mediocre – the Internet metrics company Ookla recently measured the average download speed in Lexington at 16.2 Mbps, well below the U.S. average of 37.1 Mbps.

On the other hand, unlike some other cities that have launched FTTH initiatives, Lexington isn’t precisely underserved. There is no groundswell of community outrage about broadband. But Jim Gray, the city’s mayor, believes better broadband will give the city a better future, and he vowed to make Lexington a gigabit city. “Every city is in a competitive chase for talent and investment and jobs,” he explains. “This is essential just to stay competitive.” Continue reading

Verizon Gets Slapped by New York City Mayor

English: Verizon Building in New York City

English: Verizon Building in New York City (Photo credit: Wikipedia)

by Daniel Cooper | @danielwcooper | June 19th 2015 At 11:00am

Way back when, Verizon pledged to build fiber optic services to every home in NYC, but for some reason, it never got around to finishing it. Unfortunately, New Yorkers are used to getting what they want, and so Mayor Bill de Blasio has slammed the company saying that it needs to sort out the problem, or else. The city has delivered Big Red a very public ultimatum: Either it brings its FiOS network to “every household” in the five boroughs, or it’ll face some heavy penalties.

The saga began back in 2008, when the city agreed that Verizon could operate a local cable TV franchise in exchange for a fiber optic network. The deal was that every person in NYC that wanted super-fast broadband would be able to get it by June 30th, 2014. Naturally, the overwhelming number of consumer complaints prompted the mayor’s office to conduct a full investigation into what the hell was happening. Continue reading

Almost Half of World’s Population Will Be Online By December

International Telecommunications Union, Geneva.

International Telecommunications Union, Geneva. (Photo credit: Wikipedia)

A report by the International Telecommunication Union (ITU) has revealed 3.2 billion people will be online by the end of this year, with two billion of those in the developing world.

However, four billion of the world’s population will still be offline, which represents two thirds of the people living in those areas. Continue reading

The Latest Big Cable Consolidation Will Screw Consumers and Startups

Get a Clue

Get a Clue (Photo credit: Wikipedia)

This article is a bit late, but the subject is still pertinent. These technology bloggers do not have any idea of how the communications industry operates. It really doesn’t matter if companies consolidate across geographical boundaries because the companies are not competing against each other in the first place. The number of choices that a consumer has remains constant in this transaction. The premise of this article is flawed, but coming from Gawker Media it is no surprise.

I find it ironic that the author complains of not enough competition then lauds efforts by the government to get into the business which is the ultimate monopoly. These kiddies think that the government will solve all of their problems while in reality they care even less about service quality and customer service than commercial service providers. I totally agree that more competition will be health for consumers but stopping this transaction will not do anything to improve that situation.

Adam Clark Estes-, Gawker Media 

America woke up to some frustrating news today. Charter, the fourth-largest cable company in America, wants to buy Time Warner Cable, the second-largest, as well as Bright House, the tenth-largest. If the deal goes through it’s going to affect come 23 million internet customers directly. Not in a good way.

Major cable mergers like this one and, like the failed Comcast acquisition of Time Warner Cable, stand to further wreck the already terrible state of America’s broadband.
Continue reading