broadband

FCC broadband lifeline proposal is slow and slower

13 March 2016 by Steve Blum
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Low aspirations.

The broadband lifeline plan under consideration by the Federal Communications Commission would perpetuate the gap between people who have access to wireline broadband at home, and those who rely solely on mobile service. Floated last week by FCC chair Tom Wheeler, the new program would allow low income consumers to opt for subsidised broadband service, instead of or in addition to lifeline telephone service.

But it sets one standard for wireline (and fixed wireless) subscriptions, and another for mobile.… More

Broadband subsidies break down barriers to competition and incumbents don't like that

10 March 2016 by Steve Blum
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Broadband service uptake is primarily a function of cost – that’s the clear conclusion of three separate studies last year. When providers offer fast service at competitive prices, more people buy it. It’s not complicated. On the other hand, when monopoly providers control an area, service quality is low and prices are high – sometimes by any standard ($150 per month for 3 Mbps!) and always in comparison to costs in competitive areas.… More

Where's the value in broadband service subsidies?

6 March 2016 by Steve Blum
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Network effects.

When you subscribe to broadband service, you enjoy its benefits. But your purchase also benefits everybody else on the Internet: the more connections a network has, the more useful – and more valuable – it can be. In an analysis of a ban on Internet access taxes, the non-partisan congressional research service (CRS) discussed the rationale for subsidising broadband access…

When an individual is making a decision about whether to purchase Internet access…they will consider only their personal benefits from accessing the Internet and may not consider the external benefits they will create by purchasing Internet access.

… More

California's broadband tax on phone service poses hard choice

2 March 2016 by Steve Blum
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Is it a rock or a hard place?

The ban on state or local Internet access taxes creates a dilemma for policy makers in California. Right now, some broadband infrastructure construction is subsidised by the California Advanced Services Fund (CASF), which gets its money from a relatively small tax on telephone bills.

In other words, telephone customers are paying to improve service and, presumably, reduce costs for broadband subscribers. Nearly all people who buy broadband service are also telephone customers – the CASF tax is applied to mobile and VoIP service too – but the reverse isn’t true.… More

Broadband tax ban isn't as complete as you might think

28 February 2016 by Steve Blum
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Taxable.

From a subscriber’s point of view, there is no state or local tax, sales or otherwise, on “Internet access service”. It’s banned by federal law. But that doesn’t mean Internet service is completely tax free. Accord to a report by the congressional research service, the Internet service tax ban only applies to end users…

Internet access service is defined as “a service that enables users to access content, information, electronic mail, or other services offered over the Internet and may also include access to proprietary content, information, and other services as part of a package of services offered to consumers”.

… More

California broadband consortia try for second round of grants

23 February 2016 by Steve Blum
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Click for the big picture.

Funding for the regional broadband consortia that the California Public Utilities Commission approved four years ago has either expired or soon will. For most, that’ll mean a gap in funding while proposals for new consortia grants are processed. A total of fifteen applications were filed by last month’s deadline.

The San Diego consortium did not reapply, but it’s been inactive for some time. The One Million New Internet Users consortium in Los Angeles County didn’t come back either, which is no surprise given the way it was ripped by a state audit.… More

U.S. senate looks at conduit requirements for federal highway projects

21 February 2016 by Steve Blum
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The “Mobile Now” bill that was introduced in the U.S. senate is mostly about freeing up more government-reserved spectrum for broadband purposes, but it also includes an endorsement, if not a full-on commitment, to a dig once policy. It expresses a desire for federal transportation officials to include conduit in highway projects…

It is the sense of Congress that Federal agencies should endeavor to create policy that–

  1. evaluates and provides for the inclusion of broadband conduit installation in federally funded highway construction projects;
  2. provides for such inclusion without negatively impacting the safety, operations, and maintenance of the highway facility, its users, or others;
  3. promotes investment and competition by ensuring that communications providers may access such conduit on a nondiscriminatory basis; and
  4. limits any burden on State departments of transportation incurred by the inclusion of broadband conduit in such projects.
… More

San Benito streets aren't complete without broadband

18 February 2016 by Steve Blum
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Fiber marker.

What travels below roadways is as important to street and highway planning as what travels upon them. That’s the simple message in a complete streets policy developed and adopted in San Benito County, which is both the southernmost extension of Silicon Valley (reckoning by census bureau designations) and part of the Monterey Bay region in California.

Streets are more than just a place to drive a car…

San Benito County recognizes that roadways provide mobility and access for travelers, and serve other functions that are important to the community.

… More

AT&T tries to stop video bleeding with DirecTv tourniquet

17 February 2016 by Steve Blum
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AT&T is cutting off its Uverse video service, according to a story on Bloomberg.com. It’s no longer making Uverse set top boxes and new video customers will be hooked up to DirecTv’s satellite service. With video customers fleeing to cable, AT&T’s move comes not a moment too soon…

The shift to DirecTV was reflected in fourth-quarter results. U-verse subscribers fell 4 percent, the worst loss ever, as 240,000 customers canceled service, the company said. And while DirecTV gains of 214,000 customers almost offset the loss, U-verse defectors helped pump up cable TV growth.

… More

Gigabit competition upsets cozy pricing equilibrium

15 February 2016 by Steve Blum
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It will come back up, eventually.

Big incumbents are cranking up the marketing volume on a gigabit services in urban areas with high revenue potential, but there’s very little, if any, gigabit-capable infrastructure actually deployed yet, except for Verizon’s FiOS systems. So pricing for some is still conceptual, and high, while others are already fighting it out on the ground.

Comcast is talking about charging $299 a month and a $1,000 installation fee for its 2 Gbps service.… More