Pai promises $20 billion for rural broadband, but offers little hope for meaningful change

17 April 2019 by Steve Blum
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It makes for good headlines for a slow Friday at the white house, but so far that’s about all that’s resulted from a $20 billion pledge to support rural broadband development. Federal Communications Commission chair Ajit Pai joined president Donald Trump to hype 5G plans and spectrum auctions, and tossed in a new rural broadband initiative at the end.

Sorta.

Pai’s “Rural Digital Opportunity Fund” is just the next reboot of the long standing Connect America Fund (CAF) subsidy program, that similarly poured billions of dollars into rural broadband projects, according to a story by Jon Brodkin in Ars Technica

The new program will be part of the Universal Service Fund (USF), and it will be similar to an existing USF program that began during the Obama administration.

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Comcast has to explain why it’s okay to start cherry picking rich, rural customers right now

Tesoro viejo youtube

The California Public Utilities Commission won’t jump the gun and give Comcast permission to compete directly with the Ponderosa Telephone Company. At least not yet. Comcast has to first explain why past CPUC decisions don’t apply to its request for permission to offer telephone service in Tesoro Viejo, an upscale master planned community of 5,200 homes in Madera County. Among other things, those rules protect highly subsidised rural telephone companies from competitors that want to cherry pick affluent customers in densely populated exurban developments, and ignore people in poorer and more sparsely populated communities.… More

Comcast protests we’re not cherrypicking, it’s our cherry that’s been picked

Comcast tried to paint itself as a champion consumer choice, as its lawyers clashed with those representing Ponderosa Telephone at the California Public Utilities Commission last week. The question is whether Comcast should be allowed to compete as a telephone company against Ponderosa, which is a small, heavily subsidised rural telco. But the core issue is whether allowing wireline telephone competitors to target high revenue potential customers in rural telco service areas will lead to even greater taxpayer subsidies for less affluent and less densely populated communities that companies like Ponderosa are required to serve.… More

Comcast reveals plan to pick a juicy cherry in Madera County

22 February 2019 by Steve Blum
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Tesoro viejo

Comcast wants permission to offer phone service to a new Madera County development in Ponderosa Telephone’s territory. In a required public disclosure of a private meeting between a California Public Utilities Commission staffer and a lobbyist and a lawyer for Comcast, the company revealed that it is targeting Tesoro Viejo, a master planned community of 5,200 upscale homes on two and a half square miles of rural land in southern Madera County.

According to the filing, Comcast says that if it offers phone service in the development, it would create “additional consumer choice” but “would have limited effect on Ponderosa and its draw on [a rural telco subsidy] fund”.… More

FCC makes flabby broadband victory claims in a thin press release

21 February 2019 by Steve Blum
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Sumo suits

In a press release heavy on spin and very light on data, the Federal Communications Commission claimed broadband “is being deployed on a reasonable and timely basis” because the number of people without access to service at a minimum of 25 Mbps download and 3 Mbps upload speeds decreased by 25% in 2017. The reason for this stunning achievement? “FCC reforms”.

But a closer look at the cherrypicked data in the release shows that this feat isn’t so amazing after all.… More

Comcast seeks CPUC blessing to compete with rural telco, but only for not so rural customers

19 February 2019 by Steve Blum
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Sierra 625

Comcast says it’s striking a blow for telecoms competition, Ponderosa Telephone says no, it’s cherrypicking business customers at the expense of rural residents. At issue is Comcast’s request to expand the area in which it’s authorised to offer telephone service to include the service territory of Ponderosa Telephone Company, a small, incumbent local exchange carrier (ILEC) that serves parts of Fresno, Madera and San Bernardino counties. Presumably, Comcast is eyeing Fresno and/or Madera counties, where both it and Ponderosa operate.… More

Pai talks up rural 5G, but puts his money on 4G subsidies

12 February 2019 by Steve Blum
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Salinas windmill cell site

5G technology has a role to fill in rural broadband service, but it won’t be the kind of 5G that mobile carriers are hyping. That’s according to Federal Communications Commission chair (and Charlton Heston Courage Under Fire Award winner) Ajit Pai. He was speaking at rural broadband trade show in New Orleans last week.

There’s no makable business case on the horizon for densified 5G mobile networks in rural communities. AT&T dismisses rural 5G as an “infill” technology, and it and other carriers are not leaning on rural cities and counties for pole access, as they are in richer and more populated parts of California.… More

Microsoft’s rural broadband gamble might have millions of winners

12 January 2019 by Steve Blum
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The rural/urban broadband divide is deep, according to a report by Microsoft. For people living and working in rural areas, it’s confirmation of what they already know, but it’s valuable nonetheless. Microsoft’s critique of the available data – and the 25 Mbps download/3 Mbps upload speed standard – is a useful corporate counterweight to the claims made by AT&T and Frontier, which are the telcos receiving the lion’s share of federal broadband subsidies for 10 Mbps down/1 Mbps up service in rural California.… More

U.S. broadband is expensive, even more so where bundles aren’t available

2 January 2019 by Steve Blum
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Us ave broadband price 2feb2018

The U.S. is in the bottom half of the broadband price league table, according to a report by the Federal Communications Commission. It was published last February, but I just unearthed it and had a chance to take a hard look at the numbers. When you take both standalone and bundled Internet service packages into account, and weight it by the FCC’s market share figures of 25% standalone and 75% bundled subscriptions, the average monthly price ranges from $38 per month to $74 per month, depending on speed.… More

New congress, old issues return to Washington, D.C. in 2019

30 December 2018 by Steve Blum
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There were two wins for broadband development policy in Washington D.C. this year, and both were backed by agriculture interests. In March, a big federal spending bill passed, with $600 million going to the new ReConnect broadband infrastructure grant and loan program, and the once-every-five-years farm bill was approved earlier this month, with at least $1.7 billion more for similar purposes.

Congress didn’t do much else, though.

Unless there’s a surprise on Monday, the year will end with one empty seat on the Federal Communications Commission.… More