Broadband Bytes: February 21-27, 2009

Sorry about the late post, folks. I had family in town over the weekend and, well, you know how that goes.

Cable’s been trying to make some waves with online video announcements as The Pirate Bay continues to dominate the prosecution in their trial. There’s also allegations that the US might be #1 in broadband, but it depends on which metrics you use or give weight to. I’ve also got a bunch of stories on online services and home media extenders. All that and more in this week’s Broadband Bytes!

  • Comcast and Time Warner are still beating the drum to put together their own Internet video offering to get more of the channels they offer onto the web, possible as early as this summer. It could, however, be too little, too late. As content producers and service providers continue arguing over how to make money doing it, consumers aren’t wasting a lot of time turning to iTunes, Hulu or even bitTorrent to get their video fix. Viewers are now watching record amounts of video thanks to new online outlets available on PCs and mobile phones. Maybe it’s time to follow the lead of Europe and Latin America with hybrid STBs that combine online video with a traditional product. That way you can keep cord-cutting as myth instead of a somber reality and maybe make some extra money off of it.
  • The Pirate Bay continues to embarass the prosecution and wipe the floor with them. In fact, the defendants were confident enough that they threw a big party after the first week was over. The prosecution’s investigators admitted that they downloaded torrents from TPB and the only evidence they could show were screenshots. The IFPI was apparently so clueless that they almost sued Google for facilitating piracy and had to alter the charges a second time to try and make conviction more likely. ISPs are getting bold enough to tell the music industry to come back with a court order if they want them to block P2P sites. Given how easy it is to keep on circumventing tracking and blocking systems, P2P whack-a-mole is a losing bet for ISPs.
  • We’re… #1 in broadband? Not exactly. Broadband availability and speeds still suck, but Americans are pretty darn good at squeezing productivity out of IT assets including broadband. The survey also includes data of dubious relevance such as SMS, so take the entire thing with a grain of salt. Besides, does it really matter how we compare or how we’re really doing?
  • Verizon will allow you to stream music, pictures, and (soon) video from your PC to any FIOS STB in your house. FIOS MediaManager is available to all double-play video/Internet customers for free and while the initial interface is a bit on the clunky side, it’s that kind of innovative product that keeps customers. Providers can also extend this to offer media streaming outside of the home. If you don’t have to mess around with a HTPC or setup your own streaming solution, why would you? Verizon is also letting subscribers remotely schedule DVR recordings.
  • What’s 400MB, written by John Carmack, and totally changes online gaming? Quake III in a browser, that’s what. Quake Live launched to queues of over 55,000 players waiting to get their hands on what is likely to be the most popular free-to-play non-casual browser game. This isn’t your typical small casual flash game and it’s likely to draw a big crowd. With a success like this, will you be ready for browser-based games pushing gigabytes of data?
  • The first Blu-Ray quality movies for purchase on an STB come from VUDU, not a big-name MSO or media store like iTunes. At between $14 and $24 per title, that’s a considerable discount over Blu-Ray discs, though you do sacrifice some portability.
  • Netflix plans to launch a streaming-only plan this year or next. The powerhouse in mail-order DVDs has seen most of its subscriber growth centered around the 12,000-title strong Watch It Now feature and its availability on everything from PCs to XBox360s to TV sets. The company has proved itself savvy enough to be ahead of what consumers want, a lesson that others could learn from.
  • T-Mobile is rolling out unlimited voice plans for long-time customers at a mere $50 per month. Customers will also be able to tack on data and SMS/MMS for just $35 per month more. With competitive pricing like this, you have to give customers a reason to keep a landline around.
  • If you’re being hit by black hat hackers, it could be personal, not business. About a quarter of malicious activity in 2008 was aimed at making a statement rather than the traditional ID theft or malware planting. I’m sure that’s not much comfort to Time Warner as they ride out a DDoS attack on their DNS servers.

Broadband Bytes: January 31-February 6, 2009

It feels like the summer TV season as most of the news this week is reruns from last week. The DTV delay and broadband stimulus continue to dominate the news headlines. We also saw the launch of Lafayette’s fiber project, some new gadget news and more bad news from device manufacturers and SPs. All this and more in this week’s Broadband Bytes!

Broadband Bytes: January 10-16, 2009

Holy moly has the country gone crazy about the impending DTV transition deadline. There’s also more talk about the broadband spending in the upcoming stimulus package (where the money will come from is still a mystery), Charter’s impending implosion, the new FCC Chair, and continuing tech layoffs. We also know who’s going to replace Kevin “Ma Bell is my Homeboy” Martin on January 20.

  • The DTV transition is getting much, much uglier as Congress prepares an Obama-backed proposal to delay the switch from analog signals until June 12. Verizon isn’t very happy about it since it would delay their planned deployment of LTE, a move that also hurts Qualcomm, the company who makes the equipment. Ars Technica unveiled that an Obama cabinet member proposing the delay may have a conflict of interest as the delay would benefit Clearwire. It’s also not surprising that AT&T is in favor of the delay since it would hurt one of their largest competitors. Public safety groups also don’t want to delay their use of the freed-up 700MHz spectrum for a new public safety radio network. House Republicans have also voiced opposition to the delay citing the increased confusion of moving the date. Dish Network is already trying to capitalizing on it with misleading sales pitches. Wilmington, NC carried out a DTV test with few problems and Hawaii has already gone all digital.Add this blogger to the list of people who thinks that delaying the inevitable is a really bad idea. It’s been in the works for 10 years, we’re been talking about it publicly for at least three and stations have been bombarding consumers with warnings for at least the last 6 months. If you aren’t ready by now, then you just don’t want to watch TV. And if you do, there’s plenty of options available, including calling up local video providers for service.
  • Six billion dollars. That’s the figure being put out there for broadband spending in the new stimulus package and it may not be the final spending total. Of course, nobody knows what funding mechanisms will be used (grants vs. loans), what speeds we should expect (Skype says 50Mbps or bust) or even which technologies to support. A lot of broadband advocates (including yours truly) are concerned that the funding could become just another USF-style grab-bag for incumbents that gets used to shore up their antiquated networks and further entrench them in their marketplaces. Telecom experts are wise enough to see that writing on the wall and have proposed splitting out the USF and any broadband initiatives. Incumbents like Qwest already lobbying quite loudly for as much of the pie as they can get.
  • Maybe we should have a Charter Death Watch. The company recently missed a scheduled interest payment and filed suit against Verizon in an escalating series of patent and legal disputes. For months analysts have been predicting the bankruptcy of this debt-heavy MSO, though given their abysmal ratings in the American Consumer Satisfaction Index, this shouldn’t be much of a surprise. Companies that rank highly on the ACSI end up having a better financial picture and healthier stock price. (Hey Comcast? You’re tied with Charter on the ACSI. For last place. Just saying.)Charter isn’t the only one facing some tough times. Motorola laid off 4,000 employees and Nortel networks had to file for bankruptcy protection. Qwest is also looking at closing down a Seattle call center. Commerical account losses are the steepest, so don’t expect telecom as a whole to be very rosy this year unless you figure out way to sell other services to make up the difference. Even in all of the doom-and-gloom, however, online advertising is expected to grow. With targeting ad campaigns based on better subscriber data, there’s a much better bang for the buck. Comcast is trying to extend that intelligence to video advertising with a massive 500TB database of user behavior. Providers are also trying to shoot down privacy laws that could compromise such data-collection behaviors.
  • Speaking of selling additional services, you might want to reconsider coming up with an in-house solution. Telephony Online proposes you start partnering up with companies that already do a really good job at providing services outside of the triple-play such as telemedicine and home security. There’s a lot of wisdom to this embrace of wholesale models since you can focus on your core business instead of being distracted by expensive (and often faulty) products with a high liklihood of being discontinued in a few years. The report focuses on FTTH operators (and part 2 discusses some of the regulatory hurdles that prevent more FTTH systems), but there’s a lot of wisdom in this for HFC, FTTN and POTS systems as well.There’s also looking at The Dark Side to make more money. The RIAA is offering up a portion of settlements with pirates if ISPs will turn them in (most of them aren’t biting) and most of the proposals to cap users are focused on squeezing out additional revenue.
  • As Kevin Martin prepares to ride off into the sunset for a new think tank position, Obama has named Julius Genachowski as his pick to head the FCC, a move that was applauded by a lot of media reform and broadband advocates. Tops on the agenda? Net neutrality, fighting media consolidation (see above about partering instead of building a vertical monopoly) and managing the DTV transition. You can kiss a la carte video proposals goodbye and not expect as much focus on video pricing. White spaces may also take a back burner. Cable companies have probably already started the party to celebrate Martin’s departure. If you feel a small tear of sadness over Kevin leaving the FCC, why not relive some of his greatest hits?
  • Get ready for more pricing wars. MVNO Boost Mobile dropped a bombshell with a $50 unlimited wireless plan that includes voice, text and walkie-talkie services. That goes head-to-head with offerings from all of the major cell providers (most priced at $100 per month or greater) and even takes on brands like Cricket. The New York Times reports that Sprint did this with their pre-paid value brand to try and utilize more of their Nextel network. Embarq also dropped prices on it’s top-tier DSL product by $10/mo.One area that isn’t falling, however, is pay video services. While promotional rates are very attractive, rates have been rising quickly (no doubt because of higher retransmission fees). Oddly, churn hasn’t yet been affected, but that might be because a lot of customers are trapped in contracts with early termination fees. Many customers have also wised up; they know that calling to cancel can land them the promo rate for a few more months. Despite service complaints, price is the main factor driving subscribers to seek alternatives. Verizon seems to have taken the lead on this in at least one case, something that no doubt improved customer loyalty.
  • Despite what AT&T and Verizon are doing, Qwest is still going to stay out of the video market. Their rationale? Consumers will end up watching all of their video on the Internet soon anyway. That’s true in a lot of cases (especially for network television content), but there is still a lot of paid content that consumers want, especially as cable networks continue to make big investments in original programming. In the end, Qwest is going to have to come up with something more compelling than upload-crippled FTTN and reselling DirecTV.
  • As proof that Qwest might be onto something is CastTV, a relatively new site that aggregates content from various other video portals like Hulu, YouTube and others into a clean interface. If that got paired up with an Internet-connected TV, you might be able to ditch (or complement, your pick) your paid programming package. Demand for such a set is very high, over 71%. Microsoft has spent a long time working on an IPTV product for the XBox360 and its Netflix integration is supposed to be top-notch. Blockbuster also realizes the power of streaming video and is trying to push a new streaming product even though they totally flubbed their first attempt. The moral of the story is that providing gobs of bandwidth and not much else seems to be where telecom is heading.
  • Is Verizon planning to kill off POTS lines in favor of VoIP? It depends on which day you ask. Initial reports said they were going to within 7 years, then they came back and said they had no timeline. On the plus side, VoIP is inexpensive and has made a lot of quality and reliability improvements. On the downside, it’s still not as reliable as a POTS line and, as we learned from the Qwest-SkyWi dust-up, it may fall outside of the purview of your state PUC.
  • In gadget news, the Supreme Court has asked the DoJ to give them some input on the Cablevision DVR case. Pretty much every content producer in the country has come out against the proposal which would offer up 160GB worth of DVR for an inexpensive $10 per month.

    Clearwire is showing off a portable WiMax “hotspot” that acts as a WiFi-WiMax bridge. Any WiFi device could be surfing over the speedy new network (if/when it becomes available in your area) with minimum fuss. Somewhat related to this is the emergence of subsidized netbooks from Dell and Acer for a cool $99 if you pair it up with a $60/mo or greater data plan from AT&T. It’s not a bad deal, but it does inspire memories of the ISP-subsidized PCs of a decade ago that ended up flopping. AT&T is also getting ready to push an in-car satellite TV and radio service – at $1300 for equipment and $22/mo for service. I somehow don’t see that catching on anytime soon.

Broadband Bytes: January 1-9, 2008

Heartburn over the pending DTV switch, CES 2009 and a local retransmission battle are the main headlines of the last week. There’s also plenty of sour economic news and a few rays of hope for providers willing to grab onto innovative ways to deliver content. And, as expected, incumbents are trying to get in on the broadband spending bonanza.

  • Now that nobody can afford to buy an HDTV and the money for DTV converter boxes is completely gone (not to mention all of the nasty digital signal gaps), politicos and lobbyist are trying to push back the digital conversion date from February 17. So far, president-elect Obama is on-board as are several former chairmen of the FCC and Consumer’s Union. Draft legislation, however, does not move the date, instead choosing to assume a DTV coupon redeption rate of 70% instead of 100%. With anywhere from 2 million to 11 million people unprepared for the digital switch in just 5 short weeks, this could end up being a big issue in the 2010 mid-term election; some folks are rightfully pointing out that with the 10-year lead on this transition, the unprepared should suck it up. A delay in switching could spell problems rolling out services on the freed-up 700MHz spectrums, including delays in LTE deployment. If you still need a DTV converter box, sign up even though the money is gone; the feds will put you on a waiting list until they have more money.
  • Ah, CES. A time of releasing all kinds of gizmos you didn’t even know you needed until you knew they existed. For instance, LG is rolling out a TV with Netflix integrated into the set. That could set a trend of more set-topless boxes that can stream video from online providers. If the sets support flash-upgradability, they could even add more providers after you’ve already purchased the set. Sony already provides a module for many of its Bravia line that add sources such as YouTube and Sports Illustrated to the set and Samsung is working on it. This will fuel the projected growth in Internet viewers who use their TV.

    Another device worth mentioning is the Pogoplug, a network device that can turn any USB hard drive into an uber-NAS. In addition to the traditional NAS functions, it will also share your files over the Internet and includes both a iPhone app and a robust API. Transferring gigs of stored data means even more demand for bandwidth.

  • Are you a DirecTV subscriber? You may have noticed that you no longer have access to KJZZ, the primary source of Jazz games and an exclusive source for USU and WSU games. Despite getting retransmission fees from Comcast and Dish for the previously free channel, DirecTV said the cost was too high and has been attempting to negotiate a lower rate since March. When that failed, DirecTV dropped the station. The messy fight is drawing ire from viewers and causing black eyes for both DirecTV and Larry Miller, owner of KJZZ. With ad revenues sagging, it’s no surprise that broadcasters have turned to retransmission fees as a source of additional revenue. Retransmission revenues climbing at a precipitous rate: 32% in the first 9 months of 2008 with a projected tripling by 2012. With those kinds of rate increases, more subscribers will be driving into the arms of free Internet video.
  • Broadband subscriber growth is projected to drop about 12% this year with cable gobbling up about 75% of the growth. Why, you may ask? Because DSL is much slower and next-generation broadband options are few and far between. Verizon is already unsure that it will expand past the initial 18M-home footprint for FIOS, especially since it ends up being Verizon’s biggest competitor to its shrinking DSL subscriber base. Time Warner also dropped a bombshell when it wrote off $25B worth of AOL, an asset that continues to drag the company down. Both AT&T and Verizon at looking at some poor revenue forecasts with global telecom spending to inch forward a meager 1%. Don’t cry too hard for them, however. US companies topped worldwide broadband revenues with a nearly $9B lead over second-place Japan, a country that enjoys wide-spread 100Mbps service. US companies still charge a lot more per megabit than any other first-world country.

    Clearwire can’t get away from the bad news either. Despite launching service in Portland, Chicago has been delayed until the second half of this year. Comcast had to write off a significant chunk of its investment in Clearwire and Intel is hurting from the slow adoption of WiMax as handset vendors sit this one out.

  • Qwest is already trying to get in on the broadband spending bonanza. Their proposal is to give the money to the states and let them administer it, just like they did with the Telecommunications Act of 1996 that screwed over Americans to the tune of over $200B. Unsurprisingly, they also want broadband defined as 7Mbps downloads, about what their current FTTN system can support. It’s not just the obvious industry shills we have to worry about either; sock puppets and astroturfing are going to be as rampant as they’ve ever been. Given how pooly these companies have done with broadband already, some are rightfully asking if we should give money to the same folks who created the problem in the first place, especially since we so often see rising rates. While the details of the upcoming broadband spending are up in the air, it will include spending for smart electrical grids and improvements in medical IT systems, both of which should result in big job gains. A competing idea that should be thown into the mix is using loan guarantees instead of just giving the money away. At least then we could be guaranteed some some return on investment.
  • Remember how Qwest is using FTTN upgrades to degrade ADSL service and poach customers from other ISPs? Apparently other providers think it’s a pretty good idea. AT&T decided to downgrade 2G EDGE service to make way for faster 3G service, a move that forces many to seek a new handset. That spells a lot of angry 1st gen iPhone users who paid big bucks for a device that’s already woefully outdated. AT&T and Verizon have both used delays in moving phone and DSL service as an opportunity to upsell to U-Verse or FIOS. Customers increasingly fed up with incumbents are ready to bolt and Consumer Reports recommends going with a fiber provider. Will you be there to pick them up?
  • Speaking of dirty tricks, the fallout from the dispute between Qwest and SkyWi has the latter claiming that Qwest cost the company a bunch of customers that switched to other providers. State regulators in New Mexico slammed both companies for putting their differences before the best interests of customers. New Mexico’s AG also lambasted Qwest for “unfair billing and business practices” when dealing with CLECs. (He’d better watch their northern neighbor; Qwest decided to sue Colorado when it didn’t get the rate increases it wanted.) Idaho’s PUC didn’t get involved in the matter on behalf of that state’s affected customers since SkyWi is a VoIP provider and the PUC doesn’t believe it had authority to act. Small providers would likely be eager to jump to another transport given the opportunity, especially as Qwest flexes its muscle.
  • IPv4 is rapidly running out of addresses with another 200M snapped up in 2008. Developing countries such as China, Russia and Brazil had the biggest percentage spikes with most of the new addresses being used in North America and Asia. Google had already started a migration to IPv6; you should too.
  • Comcast has flipped the switch on its new throttling system and it appears to be solid engineering as opposed to a cheap grab for more subscriber dollars. (I’m looking at you, Time Warner.) If a particular network segment is congested and you’re part of the problem, your traffic bumps to a lower priority regardless of what protocols or programs you’re using. This is much better than using forged TCP reset packets or cutting off customers for using too much of an undisclosed amount of bandwidth. They still aren’t disclosing what happens when you hit the magic 250GB cap or how exactly we’re supposed to keep track of it, but this is a step in the right direction.
  • Broadcom is now offering up 8-channel DOCSIS 3.0 bonding which should be able to support up to 320Mbps downloads. That’s all fine and dandy, though cable operators have been slowing their DOCSIS 3.0 single-channel deployments, not to mention that most of them can’t spare 8 channels as they beef up HD offerings.

Broadband Bytes: 2008 Wrap-up Edition

Happy New Year! This Broadband Bytes covers from December 20 through the end of the year. The end of 2008 saw even more retransmission battles (in particular the 11th-hour showdown between Time Warner and Viacom), Qwest trying to unplug a rival that’s suing it for racketeering, and the pending launch of FTTH services in Lafayette, LA. I predict that 2009 will offer up explosive growth in broadband speeds and availability fueled by federal dollars, an increased flight of users from cable to online video streaming and continued greater-than-inflation rises in programming costs.

Broadband Bytes Doubleheader Edition: November 22-December 5, 2008

Between visiting family in Sacramento for Thanksgiving and a business trip to Montreal (where the hotel apparently didn’t believe in reliable Internet service), I got a bit behind on the Broadband Bytes feature. Never fear: I’ll make it up to you with a special double feature to get caught up on the previous two weeks.

There’s still a lot more going on in the industry, but that covers the big highlights.

Broadband Bytes: November 15-21, 2008

Mike just posted a Broadband Bytes, but there’s a few other things that are worth mentioning in the world of telecommunications.

  • Remember how pinched consumers are more likely to drop video service than data service? A recent survey shows that unhappy people watch a lot more television than happy people do. With economic times getting tough, it may be a smart move to come up with innovative low-cost video packages to snag/retain these customers. Comcast is already trying out a $50/mo data/voice combo and is offering free basic cable for a year for anyone who subscribes to either voice or data services.
  • Comcast is looking at sneaking in data rate increases after all. Their plan is to upgrade various tiers of service to higher speeds with accompanying higher rates. If you want to downgrade to a lower-priced package, tough noogies: speeds under 12Mbps will be gone except for a 768Kbps “value” tier. Competing providers should be able to snap up a lot of customers by offering a slower and cheaper tier between the two. T-Mobile is also raising rates on data packages, but with a 10GB monthly cap and terrible ping times, few are likely to use it for primary access.
  • Copper is dead? Multichannel is pretty sure that DSL is DOA and the subscriber numbers back that up as cable dominates. (Ars Technica offers some excellent commentary on the Multichannel article.) AT&T, while still clinging to FTTN with U-Verse, is already using WiMax as a DSL replacement in rural areas and could very well push voice over WiMax. Businesses are also seeing the light (bad pun, I know) and choosing Ethernet and big-pipe services (think OC-3/OC-12+) over T1 and T3. The price of T1 lines is also leading many small businesses to look at business-class DSL and cable options. Some are going so far as to say that copper landlines could be dead by the end of Obama’s first term as customers flock to VoIP and cell phones.
  • Telcos are hurting but cable could stick around for a while as coax offers a good chunk of bandwidth. They do, however, feel the pinch from the massive amount of bandwidth eaten up by video services. Even as SDV and DTA boxes ease some of that up, the demand for higher-quality signals to all of these shiny new HDTV sets will eat up a lot of the gains as cable operators are forced to move from 480p to 720p and 1080p signals. Competing providers will need to move quickly to offer true HD signals with low compression and superior data rates while the cable companies perform system-wide upgrades over the next 18-24 months. There’s something said for being first to market.
  • Speaking of HD, incumbents are still making agressive inroads with their HD channel counts. Comcast and Time Warner announced more HD channels this week and Dish Network is agressively adding OTA HD to many of their markets. HD isn’t the only content being expanded; both Verizon and Dish are adding more international programming as well.
  • Video isn’t just for your TV. Netflix is rolling out HD streaming with coincides with Watch It Now movies on the XBox360. YouTube is also doing a trial of high-quality video. Of course, streaming isn’t everything. Bright House is also pushing customers towards online video, just of the pay variety. They’ve inked a deal with RoadRunner to sell via their online store. All of these things is going to increase demand for greater bandwidth. And speaking of “content” delivery, you can now use your TiVo to order a pizza from Dominoes.
  • Comcast apparently feels bold enough these days to blow off the FCC. FCC Chairman Kevin Martin asked for data on the operator’s policy of moving channels out of analog tiers and into more expensive digital ones, but Comcast was bold enough to give him only partial data even as threats of fines loom.
  • It also appears that DTA boxes could be a sticky subject. CableONE asked the FCC for a waiver for a HD-capable DTA box with integrated security. This could shut out CableCARD (and possibly Tru2way) as well as a number of third-party devices like TiVo DVRs. Manufacturers are already pushing these boxes which could very well kill the Carterphone of video before it gets off the ground. Competitive operators will see the opportunity to be fully interoperable with CableCARD and Tru2way and ensure that customer DVRs will work on their systems.
  • Local programming is in high demand, but there are some chinks in the incumbents’ armor. Since local programming options like high school sports, General Conference and rebroadcasts of local news are so popular, competing operators should mimic what Comcast is doing and look into an old-school public access channel.
  • Online college classes are starting to show serious promise. Minnesota is pushing to get a quarter of college credits completed online by 2015. A collection of Utah colleges and universities headed by USU is pushing OpenCourseWare, entire courses in digital format that are free to reuse and distribute. These kinds of initiatives could drive demand for metro area networks between the universities and students.

FCC to Investigate Skyrocketing Cable TV Rates, Ignores Telcos

Have you noticed that video rates have been going up at a painful rate? FCC Chair Kevin “I love Ma Bell” Martin did and he wants answers. Despite also naming Verizon in the inquiry, it’s pretty obvious that cable is the real target. The focus is on the move of more and more channels out of analog tiers and onto more expensive digital tiers, a practice he believes is compelling consumers to pay bigger prices for the same set of channels. We’ve already seen a bunch of cable providers up their rates with Cablevision and Time Warner both getting in on the hikes.

Unfortunately, Martin is not investigating how wholesale rates from programmers have gone through the roof and has more-or-less abandoned “a la carte” programming options. He’s also ignoring caps from both Frontier (5-20GB) and AT&T (20GB) that are designed to boost revenues. Telcom in general is hurting right now and companies may see rate increases as a way to soften the dropping subscriber numbers. Both Qwest and Cox are planning lay off workers and Comcast had disappointing earnings results.

We may, however, see some big changes in store once the new president takes office. Word on the street is that Martin will voluntarily resign to pursue political ambitions in North Carolina. It’s anyone’s guess as to who would take over his spot and what they would do about these out-of-control telcom prices.

Broadband Bytes: Monday Edition

There hasn’t been any news in the broadband world the last few weeks. Just kidding. Here are some “morsels” for you to chew on:

  • A local telco in Monticello, Minnesota (Bridgewater Telephone, child company of TDS Telecom) lost a suit against a city-built Fiber-to-the-Home network. (A project very similar to UTOPIA). The judge dismissed Bridgewater’s complaint of competition by a governmental organization. Apparently, the incumbent telco, Bridgewater, wouldn’t build a fiber network so the city had decided to bond and build their own. I thought this network was interesting because the goals of the network read a lot like the goals of UTOPIA:
    • choice of service provider
    • competitive rates
    • local service
    • local ownership
    • economic development
    • economic returns to the community

    There is a site like FreeUtopia that is covering this network: http://www.monticellofiber.com/

  • Some universities seem to be cutting back on POTS (plain old telephone) offerings to dorms because of lack of use.
  • Cox and Time Warner were fined for implementing SDV and knocking CableCARD customers offline without proper notification.
  • It also looks like BPL (Broadband over Power Lines) is dead. Manassas, Virginia where the flagship BPL network was deployed has been turned over to the city who will keep it around until about 2010. For all you amateur radio (PDF) operators out there this is good news.
  • Apple is rumored to be working on a networked TV. That’s going to require a lot of bandwidth. In addition to normal TV functions, you could stream any content from iTunes like downloaded movie rentals, TV episodes on demand, etc.
  • Business Week recently did an excellent piece called “The Digital Divide” that talks about just how important broadband is becoming in spurring business in areas that have it, and leaving those that don’t in the dust.
  • President Bush signed the Broadband Data Improvement Act into law on Oct. 10. The bill will provide for improved data on the status of broadband deployment in the United States by forcing the FCC to make a couple of major changes to the way it puts together broadband information. This includes yearly metrics for “second-generation” broadband that can support full motion HD video and more granularity to for reporting of broadband broken down by ZIP+4 instead of just ZIP (as it is now). The bill also authorizes a program of grants to support public/private public partnerships to stimulate broadband deployment and adoption at the state level. I’m interested to know what this would mean for projects like UTOPIA. Thoughts?

Comcast Makes Final Four in Comsumerist's Worst Company in America 2008

Most companies would normally be excited to be a semi-finalist for an award, but not this time. Comcast has managed to bump off Menu Foods, The American Arbitration Association, Ticketmaster and even Exxon in its quest to become Worst Company in America 2008. It now faces off against Diebold, stealer of elections and maker of faulty voting systems, for the, er, "privilege" of going head-to-head with the "winner" of the Walmart vs. Countrywide faceoff.

Overall, telecom was heavily represented in Comsumerist's annual choosing of a winner/loser. Charter, Time Warner, Sprint, Dish Network, AT&T, Cox, DirecTV and Verizon each grabbed one of the initial 32 spots, giving cable, television and phone companies more than a quarter of the roster. Is it any wonder that these companies also consistently place near the bottom of the American Consumer Satisfaction Index?