monopoly competition

Content tagged with "monopoly competition"

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Trump FCC Begins Dismantling Agency Civil Rights Reforms

After decades of redlining and broadband “digital discrimination” by the nation’s biggest telecom monopolies, the FCC finally began taking aim at the problem in 2023. Now the entirety of those efforts are poised to be dismantled, courtesy of the Trump administration’s broad, controversial frontal assault on discrimination reforms and civil rights.

The 2021 infrastructure bill set aside $42.5 billion to expand broadband into all unserved parts of the United States.

But it also tasked the FCC with crafting new rules taking aim at “digital discrimination.” On November 15th of 2023 the agency obliged, passing rules banning ISPs from broadband discrimination based on income, race, or religion.

Civil rights and digital equity activists were split on the potential impact of the rules, but they did agree on one thing: it was historic for federal policymakers to finally admit that telecom monopoly deployments had unfairly excluded many low income and minority neighborhoods from affordable, next-generation broadband access.

New York Awards $13.1 Million In New Low Income Housing Broadband Grants

New York State officials have unveiled the first round of broadband deployment grants made possible by the state’s $100 million Affordable Housing Connectivity Program (AHCP), which aims to drive affordable fiber and Wi-Fi to low-income state residents trapped on the wrong side of the digital divide.

As part of the program, the state recently announced it will be spending $13.1 million to connect 14,167 lower income residents across Buffalo, Rochester, upper Manhattan and the Bronx with both affordable gigabit-capable fiber – and low cost Wi-Fi.

Flume, the partner ISP chosen by the state, will offer residents the choice of three broadband tiers: 100/20 megabit per second (Mbps) fiber for $10 per month, symmetrical 200 Mbps fiber for $15 per month, and symmetrical 1 gigabit per second (Gbps) fiber for $30 per month. All three subsidized fiber options will be locked at that price point until 2034, according to the state.

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Fox Hall affordable and senior living housing complex in Manhattan

“In today's digital age, access to reliable, affordable high-speed Internet isn't just about convenience – it's about ensuring every New Yorker can participate fully in our modern economy and society,” New York Governor Kathy Hochul said of the new grants. “Through these strategic investments, we're not only installing fiber and infrastructure, we're opening doors to education, healthcare and economic opportunity.”

Faster, Better, Cheaper

Bell Canada’s Ziply Acquisition Raises Questions About Open Access In The Pacific Northwest

Canada’s biggest telecom giant has acquired Ziply Fiber – and a sizable swath of municipal operation agreements for open access fiber scattered across the Pacific Northwest. Bell Canada and Ziply’s joint announcement indicates that the full deal will be around $5 billion Canadian, plus an additional $2 billion in acquired debt.

The acquisition could help accelerate Ziply’s planned expansion across the Pacific Northwest, where the company’s fiber network currently passes 1.3 million locations across Montana, Idaho, Oregon, and Washington State.

At the same time, Bell Canada’s history of anti-competitive behavior could herald a culture shift at the ascending provider. Ziply and Bell Canada’s rapid-fire acquisition of smaller providers across the Pacific Northwest could also risk undermining the pro-competitive benefits of the kind of open access policies Ziply previously embraced.

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Bell Canada service vehicle

Ziply was formed when WaveDivision Capital purchased Frontier Communications’ Pacific Northwest operations in 2020. It has quickly become a major player across the four states thanks in part to numerous public private partnerships with municipalities, and a 2022 announcement of $450 million in new private sector funding.

Northampton, MA Welcomes Gateway Fiber, Hasn’t Ruled Out Municipal Network

Though Northampton, Massachusetts residents still broadly support the construction of a city-owned municipal fiber broadband network, city officials are celebrating the arrival of Gateway Fiber, which will soon be delivering a more affordable fiber option, and more broadband competition, to the traditionally underserved city.

Gateway Fiber recently unveiled plans to deliver multi-gigabit speeds to large swaths of the city. The company, which will finance the entirety of the build, says it’s already invested $3 million in the project so far.

It’s a welcome arrival for a city that’s been frustrated by substandard service provided by regional telecom monopolies, and flirting with the idea of its own municipal broadband network for the better part of the last decade. Some of the city’s efforts on this front have made it easier for providers like Gateway to serve the city of 29,000.

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Northampton MA map

“While we don’t have a final cost estimate for the project, it will be a multi-million-dollar investment that will benefit both residents and small businesses in the Northampton area,” Gateway Fiber representative David Workman tells ILSR. “The project is 100 percent funded by Gateway Fiber, and we are also exploring grant opportunities that can be used to address digital equity.”

LUS Fiber Brings Popular Broadband Service Into Church Point, Louisiana

Lafayette Utilities System’s LUS Fiber subsidiary is taking the show on the road. Louisiana’s only publicly-owned broadband provider says it’s expanding access into nearby Church Point, bringing affordable fiber access to the town of nearly 4,200 residents.

LUS Fiber was awarded a $21 million grant to expand fiber outside of Lafayette as part of the U.S. Department of Commerce’s National Telecommunications and Information Administration’s (NTIA) Broadband Infrastructure Program (BIP).

“This expansion not only improves the lives of our residents but also enhances opportunities for businesses, education, and healthcare in our town,” Church Point Mayor Ryan ‘Spanky’ Meche said in a prepared statement. “LUS Fiber’s work here is a tremendous step forward for our community.”

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LUS Fiber comes to church point celebration

The expansion is part of a series of new broadband deployments that should bring more than one million feet of new fiber options to numerous new Louisiana communities, including Ville Platte, Venice, Mamou, and Basile. Church Point residents are currently able to start scheduling installations via the LUS Fiber website.

The deployments technically began earlier this year, starting with Ville Platte, which data indicates, currently has the fifth-slowest average broadband speeds in the continental U.S.

Like most of America, much of Louisiana is dominated by a handful of regional telecom monopolies that see little competitive incentive to compete on speeds, coverage, prices, or quality customer service.

Survey Shows Rising Broadband Costs, Broad Support For Government Help

A recent U.S. News And World Report survey of U.S. broadband subscribers shows that Americans are increasingly paying more money for broadband access.

The survey also indicates broad public support for the recently defunded Affordable Connectivity Program (ACP), and other government-backed efforts to cap soaring broadband subscription costs.

The organization surveyed 2,500 adults from the country’s five most populous states; 500 broadband subscribers each in California, Texas, Florida, New York, and Pennsylvania.

Not too surprisingly, the survey found that consumers consistently are paying more for broadband than the advertised price, either thanks to steady rate hikes, or the broad use of often sneaky, hidden fees to jack up the advertised cost of service.

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Monopoly Book and Money Stack

Most Americans remain trapped under a monopoly or duopoly for next-generation broadband (broadband defined as faster than 100/20 megabits per second, or Mbps) access. This lack of competition results in high prices, slow speeds, spotty access, substandard customer service, and an increased occurrence of net neutrality, privacy, or other anti-consumer violations.

The survey found the average U.S. subscriber bill at sign up is now $81 – up from the $77 average monthly price seen in the outlet’s April 2024 survey report. But the average broadband subscription cost when the bill actually arrives was now $98 per month; up from $89 just six months earlier. For most, $100 broadband access is right around the corner.

Placerville, California Strikes Gold With New Grant to Build City-Owned Open Access Fiber Network

Placerville, California will soon be a place with a municipally-owned open-access fiber network as the city of 10,000 looks to provide its residents and businesses with local choice and more affordable broadband service.

The years-long effort was launched after frustration with what the city’s 2021 Broadband Master Plan described as the “equivalent of an ISP (Comcast) Monopoly.”

“Because of this,” the plan noted, “residents and businesses in Placerville are exposed to the common limitations of monopolies” – a high-priced reality that prompted 98 percent of city survey respondents to say “yes” to a municipally-owned network.

Now, three years after that report was published – and thanks to a $20.1 million award from the California Public Utilities Commission (CPUC) Last Mile Federal Funding Account (FFA) grant program – a city that was once nicknamed “Hangtown” is now set to cut the noose of the ISP monopoly.

Montgomery County Maryland Recognized For Broadband Equity Efforts

Montgomery County Maryland has been awarded the “Best Municipal or Public Connectivity Program,” honored as a 2024 Broadband Nation Award winner for its ongoing efforts to expand affordable broadband access and help bridge the digital divide.

Montgomery County has worked extensively for years to connect municipal services and key anchor institutions, but more recently has begun leveraging that infrastructure to expand access to the most vulnerable. The county’s efforts have two key components:

FiberNet is a 650-mile municipal fiber communication network that provides broadband services to 558 County, State, municipal, educational, and anchor institutions.

MoCoNet is the County’s residential broadband network that provides free 300/300 megabit per second (Mbps) Internet service for residents at affordable housing locations. Originally providing a symmetrical 100 Mbps service, the network was recently upgraded to 300 Mbps, and is currently available to low-income housing communities.

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Montgomery County cow in field with tall buildings in background

Montgomery Connects Program Director Mitsuko Herrera tells ILSR that the county just received a $10 million grant from the State of Maryland to expand FiberNet and MoCoNet’s free 300 Mbps offering to 1,547 low-income and affordable housing units at seven properties operated by the County’s Housing Opportunities Commission.

The county’s also in the middle of upgrading its core fiber infrastructure to deliver significantly faster overall speeds.  

INCOMPAS Views Broadband As A Highly Concentrated Arena

*In partnership with Broadband Breakfast, we occasionally republish each other's content. The following story by Broadband Breakfast Reporter Jericho Casper was originally published here.

The broadband market is often described as robustly competitive. But some have their doubts.

With the Federal Communications Commission (FCC) preparing a biennial report to Congress assessing competition in communications, some industry stakeholders have voiced concern over the growing dominance of a few major players.

Last Thursday, representatives from INCOMPAS, the trade association for competitive communications companies, met with FCC officials to discuss the forthcoming 2024 Communications Marketplace Report. This report is intended to guide FCC policies that foster competition, innovation, and consumer choice in the industry.

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INCOMPASS President Angie Kronenburg

During the meeting, INCOMPAS President Angie Kronenberg and Attorney Lindsay Stern emphasized the ongoing issue of high market concentration in the fixed broadband internet access service sector, urging the FCC to more closely examine the barriers that stifle competition.

In an August 12 filing at the FCC, INCOMPAS pointed out that the top four broadband providers—Comcast, Charter, AT&T, and Verizon—dominate nearly 80% of the fixed BIAS market, leaving most consumers with only one or two options for broadband service, especially at higher speed tiers.

Brownsville, Texas is Lit and Ready To Launch Into The Future

U.S. News & World Report recently ranked Brownsville, Texas as one of best places to live in the Lone Star State and as one of the most affordable places to retire.

Now – as the border city continues to make progress on an ambitious revitalization initiative – it is adding to its “best, most affordable” resume by transforming the digital landscape with a citywide fiber network to bring fast, reliable, and affordable Internet service to its nearly 200,000 residents.

The effort is being launched on the back of a city-owned middle mile fiber backbone and partnership with Lit Fiber to build out last mile service, operating as Lit Fiber BTX.

“We just lit up our first subscriber and will have 10,000 locations-passed by the end of the year,” Rene Gonzalez, Lit Fiber’s Senior Vice President of Policy and Regulatory Affairs, told ILSR this week.

“Brownsville was a place that had been neglected. But now, SpaceX is here. We are here. It’s exciting.”

The excitement was palpable last week at the BTX Demo Center in downtown Brownsville where city and Lit Fiber officials held a “special community social” to celebrate service getting turned on for the first LIT Fiber BTX subscriber and to showcase what the network will offer city residents and businesses moving forward.