Comcast has a lot to lose if municipal broadband takes off
arstechnica.com
arstechnica.com
And really, as a monopoly comcast should be busted up.
The correct response IMO is:
1. Don't block municipal broadband or new commercial providers, there should be no _forced_ monopoly.
2. Split access providers up into two: the wholesale access network and the services on top. The wholesale access networks offer the same regulated (cost+) terms to any ISP/service provider who wants to reach customers on that network. Now the ISP/TV component of Comcast has to compete on the same terms as any other ISP/TV provider using that access network.
[1] I say semi-natural because in the US they're not natural but regulated and there has been a fair amount of overbuilding in cherry-picked areas.
This should be municipally owned, too. Monopolies almost always function better when answerable to voters rather than taxpayers (the exception being when the privatization playbook is being followed: https://www.nakedcapitalism.com/2016/06/tsa-as-example-of-pr... ).
For example it would be relatively simple to craft a law that requires this split for all such telecommunications access networks regardless of existing or new builds or cable vs copper vs fiber. Immediately that would level the playing field because Comcast has to sell access on its network to itself at the same price it sells it to another ISP.
The Bush FCC killed the line sharing rules.
Split layer 1 from layer 3. I want a fiber pair from my house to the central office, where I can then patch to any provider who decided to pay the cost-recovery based co-location connection fee. Basically I should be able to tell this wireline provider to plug my patch cord into service provider X and they do it within a reasonable timeframe. I pay this provider for the wire itself.
I then get provider #2 and subscribe to their IP services. Hopefully there would be enough competition (e.g. dozens) here to not have to regulate further.
Yes, this does create a middle man agency and relatively inefficient physical infrastructure (e.g. I'd be pretty anti-GPON or similar tech for this use for a variety of reasons) so in theory prices would be more. However I think if you could get back to an environment where ISPs can compete on a wide variety of merits like in the late 90's dialup ISP days you would see overall price decreases.
It would also allow for the creation of "boutique" local ISPs that can cater to certain crowds. The highly technical crowd who is happy to pay more for a clear channel ping and pipe and no other BS will be able to find a home, just like grandma who needs a cheap nicely filtered/secured internet to check her e-mail and use facetime. Basically allow for a bunch of sonic.net style ISPs to compete in most markets.
Anything short of this I think just devolves into both stagnation and rent-seeking. Even municipal provided broadband would be subject to this - many networks will likely be built out and then left to languish long-term if there is no competitive pressure.
> many networks will likely be built out and then left to languish long-term if there is no competitive pressure.
Municipal broadband is accountable to its local citizens or stakeholders, depending on the model used to develop it (government owned or non-profit owned). If it languishes, it will only do so because its citizens or users allow it to.
EDIT: If you're in an area where there are only large corporate internet providers, please take up the cause for municipal or co-op broadband!
I don't find this comforting. Citizens regularly allow public services to languish, through a combination of a myopic focus on cutting costs/taxes and lack of accountability. When I lived in Wilmington, Delaware, bus drivers would straight up quit 20 minutes early, putting up their "out of service sign" and skipping their last several stops. I drive all the way into work even though there is an Orange-line Metro stop 20 minutes from my house and 5 minutes from my office. The scheduled 36-minute trip is almost never under 40 minutes, and during commuting times approaches 50 minutes. That's without unexpected delays.
One of the things the environmental law clinic at Northwestern does is identify municipal water/sewer systems that are not in compliance with the Clean Water Act and Safe Drinking Water Act. There are many such systems, and invariably they remain out of compliance because citizens are unwilling to raise water/sewer rates to fix the infrastructure.
> One of the things the environmental law clinic at Northwestern does is identify municipal water/sewer systems that are not in compliance with the Clean Water Act and Safe Drinking Water Act. There are many such systems, and invariably they remain out of compliance because citizens are unwilling to raise water/sewer rates to fix the infrastructure.
I agree this is a problem that takes a lot of effort on the part of elected officials to be honest with citizens about why money must be spent to maintain infrastructure, while ensuring that collected tax revenue is spent in a transparent and effective manner. Letting infrastructure go is simply robbing from the future; the bills come due eventually.
If we were starting from scratch, I'd advocate for the Stockholm model: https://www.stokab.se/Documents/Stockholms%20Stokab%20-%20A%.... A public entity to build dark fiber that isn't taxpayer supported and builds out based on demand and profitability rather than mandates. That ship has sailed, however.
I do think the FCC should preempt all state-and-local franchising laws, and also state-and-local restrictions on municipal broadband. Private providers can compete in areas and neighborhoods that support competition (my neighborhood has two providers for gigabit fiber, for example), and municipalities can address areas that are overlooked by the private sector.
> I do think the FCC should preempt all state-and-local franchising laws, and also state-and-local restrictions on municipal broadband. Private providers can compete in areas and neighborhoods that support competition (my neighborhood has two providers for gigabit fiber, for example), and municipalities can address areas that are overlooked by the private sector.
My concern with this is if you don't mandate covering all neighborhoods, private providers will cherrypick the most profitable areas, leaving less well off areas underserved or not served at all. A great example is the US Postal Service: you can't compete against them, and in return, they service absolutely every address in the United States.
That's fine. It's the government's job to step in and provide the safety net. Look at what Sweden did with fiber in rural areas. Instead of forcing companies to serve rural customers in return for the right to serve urban ones, the government simply gave a tax credit to rural residents to defray the costs of building fiber.
With the emergence of 5G wireless, it becomes much more practical for the government to be "the ISP of last resort."
Well, why should they have to? The main purpose of the water/sewer company is to provide service in compliance with that act. If costs have risen due to the natural order of things, that's one thing. But in many cases, it seems like the maintenance has been neglected on purpose, in order to benefit shareholders. And now you want me to pay more to do what you should have been doing in the first damn place?
Err. That just seems like it’s the fault of the regulators refusing to do their jobs these days. (And also because the regulators have been declawed and coopted by industry.)
If you have a regulation that says “water must be clean” and then the regulator doesn’t test or fine or force the municipality to fix it then that’s where the problem lays. The idea that somehow a private water company would be better is absurd in this example, why because the citizen who you’re blaming for not upgrading the water supply would somehow chose to go with another water supply provider who was cleaner?
I feel this is really only because there's been no real competition in this space at all. There's been one phone company, one cable company, and that was it. Compared to other markets where there is some semblance of competition, and you see the comparison shopping behavior. I don't really see why it couldn't translate to internet access, given time.
The internet is not a dumb pipe -- making the right routing decisions and connections in the right places makes things better. On the other hand, the last mile is actually a place where things can be pretty dumb (fair allocation of shared mediums not withstanding).
I would love to pay an ISP for better routing and transit, but I can't afford to pay them for overbuilding in an area already served by a phone company and a cable company. I don't expect a municipality to spend the time and effort to get great routing and transit either; I expect they'll get service from one, maybe two big transit providers, and maybe network appliances from Google and Netflix, and call it a day.
If you allow private entities to freely monopolize, then they will make them complicated. Do you forget how ula executive being fires because he admit cost cannot match spacex?
> I then get provider #2 and subscribe to their IP services. Hopefully there would be enough competition (e.g. dozens) here to not have to regulate further.
This is exactly how DSL worked, with ILECs being forced to sell wire access to CLECs. Many places were still not served by a CLEC.
The answer for keeping things competitive and modern is probably both. The physical infrastructure companies should provide dark fiber, which will be demanded if there is high enough population density to independently invest in the gear to light or even for individual businesses with special requirements. They should also provide aggregation through their own edge switches, so that less-dense places can experience provider-competition at regional meet-me centers.
Every municipal service I can think of is overstaffed and inefficient compared to private businesses.
The "nickle and diming" is just moved to tax rates and fees that are under the radar for most people.
Just cancel the franchises and let the market compete for internet service. I think you'd be surprised.
We should make franchising requirements illegal at the federal level. There is no need for them, and all they do is artificially limit competition. Even though the franchises are, by law, non-exclusive, the terms for getting a franchise are usually onerous enough that nobody but the incumbent is willing to put up with them.
Now, if we have municipal broadband, that could ensure lower income areas are serviced instead. But without that fallback, cancelling franchise agreements would likely increase competition in the rich neighborhoods, and lead to things being just as bad or worse than they are now in poor ones.
> [C]ities need to approach their current ISP with a detailed broadband plan. The ISP then has 60 days to take that plan and implement it or reject it. If the company agrees to take the plan, it has a year to build it out. If the plan is turned down, the city is free to build its own network.
Out of the 10 most populous states, only three have significant restrictions on municipal broadband and none have an outright ban. I think the FCC should preempt all such restrictions, but it's kind of a cop-out to say that laws like these are why municipal broadband is so rare.
Sadly, many of them don't seem to see what a success most of it is.
Well, they don't until municipalities actually try to start a program. Witness Tennesse a couple of years ago: https://arstechnica.com/tech-policy/2016/03/tennessee-kills-...
Yes I realize this argument wears thinner the more democracy gets weakened... and hey, weird, the ones weakening it are the same few people (Comcast in this case) who stand to profit from weakening it. Just a coincidence I'm sure!
Anyway you're not helping democracy either, by giving up on it and/or buying into the whole "the market will fix everything" idea.
Free markets would be great, but what you find instead is that those who want to exploit a given market, sell everybody on the idea that "the market will fix everything" when they want to enter it. But after that, they do everything in their power to make sure it's NOT a free market. They want to avoid dealing with competitors, so they work to keep them out of the market. But unfortunately competition is the precondition on which most of the "market will fix everything" argument rests.
I don't hate Comcast as much as others, but I'm really looking forward to Fort Collins starting the process of doing municipal fiber.
Comcast and CenturyLink have neglected upgrading infrastructure for decades, and so if they aren't going to do it I don't see why the city shouldn't. Comcast at least has a reasonable service, CenturyLink tops out at 40Mbps at my home.
CenturyLink is particularly culpable because they received $2B in taxes to roll out fiber to the home by the year 2000, and did little if anything for that money. I've never even known anyone who has QWest/CenturyLink FTTH.
They are just sitting on a bunch of copper twisted pair, hoping to get as much money as they can without any investment in new technology.
Even back in the last '90s they had that attitude. They refused to deploy DSL concentrators in neighborhoods, because that would open the pedestals to CLECs to put gear into. So instead they required all DSL runs to go to one of the two Fort Collins Central Offices. A huge amount of the city was un-served because they were more than 18K feet from a CO.
I want my Centurylink fiber back :(
It does make multi-GB downloads really nice and fast, a few seconds.
I would pay MORE to have municipal internet if I didn't have to put up with Comcast anymore.
Actually, I’m going right now to see if there are any municipal broadband efforts in my area that I could throw money at / help out with. Is there some good place to find out more about efforts in _____ area? Sadly, like many in the Bay Area, I live in an apartment with a Comcast community manager, so we’d likely be the very last to get off of Comcast unless some great wireless tech becomes viable (and even then, we’re not allowed to have any external antennas mounted outside of our units).
I researched it awhile back, whether the social benefit would outweigh the social harm by eliminating "competition" is the criteria used to decide if something should be a utility and with Internet it's a no brainer.
As another poster said, would you want Comcast providing water to your neighborhood?
Americans as a whole are horrible at managing money. They don't pay their bills on time, have tons of credit card debt, etc. This isn't my opinion, it's cold hard reality: look at the subprime crisis, debt burden, charge-offs/delinquencies, etc. Frankly, the crowd reading this website is just way out of touch with the reality of the situation.
For municipalities where people are responsible and there's a real sense of community, sure, do municipal broadband. I'm sure it works sometimes, but for my money, I'd rather pay the extra $5-10/month and not have to be a bill collector to my neighbor. I pay $40/month for 50Mbps Comcast and I'm fine with it.
eldavido- can you give some more information about any news stories that cover this happening?
What I'm saying is that, we have large-scale utilities like power and water companies that are able to provide individual, metered service to households over a geographically distributed area. In order to to this, there is a large amount of unpleasant, schleppy work required that most analyses of smaller-scale alternatives conveniently sweep under the rug.
Either we assume (a) another large-scale operator will provide broadband, which will probably be something like Comcast (maybe not), or (b) it will be done at a smaller scale, say, a company for 1000 residences. Does (b) actually exist?
Chattanooga's municipal broadband exists and delivers speeds as fast as any in the U.S. Salisbury, NC has a municipal broadband service that was grandfathered in before the state law banning municipal broadband.
As far as b: I live in a small town that started a municipal wireless service after Wheeler's FCC tried to override the state law banning it. Fast, affordable, symmetric. I didn't attend the meeting but am certain a clear and detailed cost-benefit analysis was presented and voted on (as well as being made available to the public per state law).
I always think of that last point (what else would people do) when people mention how "the Soviet Union had such great math teachers OMG WHAT IS WRONG WITH THE US". The US has SILICON VALLEY, hedge funds, world-class universities, etc. - US primary/secondary ed has to compete with these places for talent and frankly, they often lose.
I have a hard time believing that a small operator could offer anything that stacks up against Comcast product-, service- and price-wise, but I'm willing to be shown I'm wrong about this. Maybe I shouldn't be so cynical ;)
All I'm saying is that, whenever people complain about Comcast, it's inevitably about some problem with either their network, or customer service.
Comcast is a huge, scaled organization that deals with "the public". They deal with people who don't pay. They follow up when bills get lost. They deal with people who forget to return their routers. They provide level-1 tech support for people who accidentally switch their modems off and call to complain. They handle shitty premises wiring problems induced by home DIYers who crimp RG-6 connectors with pliers. They handle support cases where people spill Coke on their routers and complain that it "stopped working".
All I'm saying is, it's just incredibly naive to look at the problem of an ISP as just "network operations". Like, we can build/operate a better network=profit. That's an incredibly naive view that neglects all the ancillary work of premises provisioning, bill/payment management, 24/7 customer support, pretty much the entire "customer" side of running a large-scale retail ISP.
I mean really, what is "community broadband"? Are we just going to magically assume that, because we aren't dealing with Comcast, all of this work will somehow magic itself away? I don't get it.
We must also consider the legal frameworks which allow such companies to operate in these ways. I don’t have my energy company sending me emails and mailers urging me to get PG
Literally, literally every time we move, we've tried to cancel the internet at our old apartment and set it up at our new apartment - and had them end up canceling the internet at the new place. (What happens with the old internet is different every time; either it gets cancelled as well, or it remains an active account that we get billed for, or some other egregious customer service failure.)
The trick is that Comcast and Verizon are also apparently good in my neighborhood. According to multiple neighbors who've moved around the area, service is notably better when you're in the competitive neighborhoods — someone who moved just a few blocks south reported a big difference since they were in the Comcast-and-slow-DSL area. Not surprising since I've heard at least one former employee say that one of the prominent bits of information show onscreen with support calls is the competition level of the caller's address.
ISP operations are very locally run, so the service quality is pretty random. I've had Verizon FiOS for four years, and it's been rock solid. I had one outage a few years ago, and they sent a tech out the same day to replace the failing ONT. And except for some recent growing pains with gigabit, I've gotten 10% over my rated speed at all times of day.
Broadband, like water and electricity, is a natural monopoly - there's only so much room on the poles, and there's significant economies of scale by having everyone in a neighborhood connected to the same infrastructure.
I hope that Municipal broadband becomes more available and more common. On average, the service provided by the municipalities is much better, and much cheaper than the commercial alternatives.
[1] https://arstechnica.com/information-technology/2015/11/how-a...
And I live in the original home of the internet, Berkeley (which had one of the first 4 'IMPS').
I’d like to see a community funded ISP on top of a city-maintained fiber network. That way the government can be told to fly a kite if they want to put their hands on anything of value.
I do see where he's coming from though but I don't know how to counter those arguments as I don't know the history of how all the fiber got laid and who actually "owns" any of it. It seems like the phone lines or water that it's a public good at this point.
Bringing up that example is countered with what a f up all the Baby Bells became.
Anyway, curious as to what some folks here that are much older and might have had a hand in the growth of broadband have to say.
That's a pretty useless definition of ownership. Nobody I know of requires permanence in the definition of ownership.
It depends on who laid the fiber. In the context of cable companies like Comcast, almost all of the fiber was built with private money. Cable companies were historically not regulated as telecommunications carriers, which means they didn't get whatever subsidies were available for deploying telephone service to various places. In fact, the opposite is true. Municipalities generally treat cable-company contracts as a way to get freebies. A standard contract will require the company to pay 5% of gross revenues to the municipality, plus various goodies (wiring up municipal buildings with fiber, lump-sum contributions, etc.) That is on top of the rental fees paid to the power or telephone company for space on the poles.
That is very different from how, for example, water and sewer lines are built. In almost every county, water and sewer lines are paid for by mandatory fees paid to the county when you build a house. Most people don't realize it because it gets rolled into the price of the house. But in the county where I live, for example, the builder pays about $25,000 to the county in fees to hook up to the public water/sewer system.
They've been paid, multiple times, by varying levels of government, large subsidies with the specific mandate to improve service, increase maintenance, and so on.
And multiple times they've accepted this money and done literally nothing with it.
To the extent that Charter (I think?) was recently spanked by NY for selling packages of 50mbps, 100mbps and above... while supplying modems that were physically incapable of more than ~20mbps.
I know that a lot of folks around here aren't fans of the government, but isn't this what a stronger FCC would be good for? I guess as long as the right person was appointed to the chair.
With how much in original federal subsidies? How much in annual federal subsidies? How much is the protection of monopoly provider in certain areas worth?
They (Comcast) aren't running their business with ONLY their dollars.
These topics were extensively discussed in the Federalist Papers and Anti-Federalist Papers over 200 years ago, and I would suggest everyone read them.
I live in an apartment in the Seattle area with WaveG broadband (www.wavebroadband.com)-- 100mbit (up+down) for $60/month. In some buildings they offer gigabit speeds for $80/month.
I've been pretty happy with them, reliable service and provisioning is easy -- placed an online order and 2 days later the ethernet jack in my apartment was turned on. No modem or any type of installation needed.
But they only serve select apartments (looks like they serve a couple hundred buildings in the Seattle area).
I wonder if cities could inspire more competition in the ISP market by making it easier for a new company to wire up a town. Another model would be for the city to provide fiber to each house as part of standard infrastructure that any ISP can provide data over. That way ISPs would be competing on price and service--not on who happens to own the wires running through your neighborhood.
Geosync is a whole 'nother ballgame. It's a quarter second outbound, and a half-second round-trip ping (earth-bird-earth and back).
Radio talks through clouds just fine.
10 ms is roughly datacenter lag (or was a few years back). 100ms is good cross-country pings, 300-600 is continent-to-continent links.
Figure on edge caching aas well.
Way back in the day (10-15 years ago) my friend with satellite Internet had 300+ ms pings everywhere and at the time a dial-up modem was still required. Good to know things have changed.
For more: https://muninetworks.org/communitymap
Did the government dig those tunnels? No they hired a contractor who sold them on one price and then sent them a bill for a much higher price. So much for private enterprise saving the taxpayer money.
> why not just have the public own the 'last mile', and then let private companies plug into the grid?
This is how most municipal broadband works right now. You, the ISP, rent the fiber from them. They can't make a profit so municipalities can only charge you what it costs to install and maintain. Most govt don't want to be in the ISP business but they are given the choice of doing it or letting the free market continue to ignore them they'll do it.
OT: if everyone can do that, what's preventing everyone from bidding $1 on multibillion dollar contracts? surely there must be a way to uphold them to the amount they bid for.
For example, take toll road highways. Not a single one exists in the USA that lasted the length of their contract without going bankrupt and ripping off everyone.
>Beginning with the contracting stage, the evidence suggests toll operating public private partnerships are transportation shell companies for international financiers and contractors who blueprint future bankruptcies. Because Uncle Sam generally guarantees the bonds – by far the largest chunk of “private” money – if and when the private toll road or tunnel partner goes bankrupt, taxpayers are forced to pay off the bonds while absorbing all loans the state and federal governments gave the private shell company and any accumulated depreciation. Yet the shell company’s parent firms get to keep years of actual toll income, on top of millions in design-build cost overruns….
>Of course, no executive comes forward and says, “We’re planning to go bankrupt,” but an analysis of the data is shocking. There do not appear to be any American private toll firms still in operation under the same management 15 years after construction closed. The original toll firms seem consistently to have gone bankrupt or “zeroed their assets” and walked away, leaving taxpayers a highway now needing repair and having to pay off the bonds and absorb the loans and the depreciation.
>The list of bankrupt firms is staggering, from Virginia’s Pocahontas Parkway to Presidio Parkway in San Francisco to Canada’s “Sea to Sky Highway” to Orange County’s Riverside Freeway to Detroit’s Windsor Tunnel to Brisbane, Australia’s Airport Link to South Carolina’s Connector 2000 to San Diego’s South Bay Expressway to Austin’s Cintra SH 130 to a couple dozen other toll facilities.
>We cannot find any American private toll companies, furthermore, meeting their pre-construction traffic projections. Even those shell companies not in bankruptcy court usually produce half the income they projected to bondholders and federal and state officials prior to construction.
Thinking Highways by Randy Salzman https://www.nakedcapitalism.com/2016/05/calpers-invests-in-t...
Where is this being done? The cities I've seen that are doing municipal broadband like Chatanooga are actually in the ISP business. (as far as I understood)
This was the plan for Australia's NBN (National Broadband Network). FTTH for the country, with ISPs hooking in at the head ends.
Of course, that wasn't business friendly so the Liberal Party (who are actually conservative, synonymous with Republican) torpedoed it into a sad shell of the promise it offered.
>If you consider broadband a basic need (I do) then it makes sense
I don't think having such a simple gating mechanism for prescribing government policy makes much sense. I also consider food to be a basic need, but I don't want a government cheeseburger.
Like I said, I'm all for the public owning the last mile and then the private players compete.
I don't personally eat red meat or dairy. So people like me are basically paying for everyone else to go to McDonald's with my taxes.
(1) - http://usmfreepress.org/2013/04/29/meat-subsidies-strip-othe...
I suppose then you also take personal responsibility for the bombs dropped in Syria?