Qwest and Verizon Sittin' in a Tree… M-E-R-G-I-N-G?

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For several months now, rumors have been swirling about that Verizon may attempt to purchase Qwest, a move that would put us one step closer to a reversal of the 1984 breakup of Ma Bell. Most cite Qwest’s switch to selling re-branded Verizon Wireless service as testing the waters. Qwest is also in a weak financial position with dropping profits and subscriber losses. It’s no secret that the company has spent years trying to find a buyer after the company suffered precipitous drops in customer satisfaction and service quality from 2001 onward. Could cash-rich Verizon be the white knight they’ve been waiting for?

Maybe. Continue reading →

Broadband Bytes: Weekend Edition

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  • Qwest announced key leadership changes in Sales and IT. The link includes some background about each of the new executives that have been chosen. I’m hoping the new leaders will realize the importance of bringing telecommunications into the 21st century by investing in infrastructure like Verizon has been doing and understand the increasing importance of upload speeds.
  • Recently, it has come to light that Comcast has been throttling bandwidth for various applications with little or no disclosure. In a 67 page order, the FCC has said that “Comcast has 30 days to fess up about P2P throttling”. On Wednesday, there were also reports that Comcast would slow traffic for heavy users, but today in the NYTimes Comcast claims that no final decisions have been made about managing network traffic.
  • Qwest and Comcast are battling it out here in Utah over property taxes and whether they should be assessed by the state or local tax entities. Qwest claims that Comcast isn’t being fairly taxed today.
  • Another city, Sacramento, is discontinuing their effort to bring free WiFi Internet to the city (joining San Francisco and others that have discontinued their service). But in other news, Houston just announced a new project that will to give free WiFi Internet access in some downtown areas using excess network capacity from their parking meters. There’s lots of talk about free WiFi, it’s almost as if people are starting to consider it an inalienable right.
  • More information on in-flight broadband. Looks like Jet Blue and others are working on it.
  • What about those new technologies that could be deployed over high speed networks like UTOPIA? Intel and Yahoo are going to try again to combine Internet and TV.
  • There is a looming problem on the Internet, IP addresses are running out. There is a finite number of addresses and experts keep telling us we are close to exhaustion. The solution is IPV6, but according to reports, it is failing to gain traction.
  • Internet traffic is on the rise and consumers are using more and more bandwidth:
    • “As cable and phone companies race to upgrade services or offer video for the first time, they’re doing it by installing equipment in boxes on lawns, easements and curbs all over American neighborhoods. Telecommunications rollouts have always been messy, but several towns and residents are fighting back…”
    • Some ISP’s have responded to increased bandwidth usage by some of their customers with announcements of new bandwidth caps.
    • P2P data is a big bandwidth user, apparently accounting for 40%-60% of all the traffic used on the Internet. Some researchers have a novel idea for cutting bandwidth usage. In a paper to be released next week, researchers found a way to lessen the load of P2P with an algorithm they dub “P4P”. Though the P4P article is scant on technical details, it involves finding shorter routes between users thereby making the traffic traverse fewer networks.
  • 100 Mbps Wireless Broadband in two years? Theoretically possible but color me skeptical that we’ll see this anytime in the next decade. I still can’t get 3G with T-Mobile.
  • An analyst at a major investment firm says that broadband competition is today as good as it is going to get and that there aren’t going to be any major disruptive technologies in broadband in the future. All the more reason UTOPIA is so important: it provides an open infrastructure that fosters provider competition.
  • Taxes and the Internet. Yuck. We already know Amazon has been fighting New York’s new effort to try to tax out-of-state Internet sales. They’re getting a new ally: Newegg announced today they will no longer collect taxes for New York. The effects of this case could be profound because both congress and other states are trying to find ways to tax Internet sales as well. Haven’t they read the studies that show that 50% of consumers would buy less online if charged sales tax? Of course in Utah, we’re already supposed to voluntarily report online purchases on our tax returns if we didn’t pay tax on them (use tax), so anything we buy on Amazon or Newegg would get taxed.
  • Speaking of politics, this article has an interesting look at the Internet policy in the 2008 Democratic platform. I couldn’t find any info yet about the 2008 Republican platform (it hasn’t been released yet). In 2004, the Republican platform stated: “Broadband provides Americans with high-speed Internet access connections that improve the nation’s economic productivity and offer life-enhancing applications, such as distance learning, remote medical diagnostics, and the ability to work from home more effectively…Broadband technology will enhance our nation’s economic competitiveness and will improve education and health care for all Americans.” It’s nice to see that both major parties acknowledge the importance of broadband for the future of this country.

We’ll see you at the Layton U-CAN meeting on Saturday at Noon at the Davis Library.

Broadweave's Business License Issues Continue

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Remember how Broadweave was operating without a business license in any city it did business in? It seems that despite having gotten licensed to do business in South Jordan and Provo, they still can’t get their ducks in a row in Washington City. Company lawyer Jay Cobb said that Broadweave through they had the matter taken care of yet when I spoke to the city recorder in May, she claimed that Washington City had been trying for months to get Broadweave to take care of its business licensing issues without any success. I suppose we shouldn’t be too surprised at a lawyer who bends the truth.

I did a bit of checking on my own and found that that Broadweave still continues to operate in Lehi without a proper business license. I guess they’re too busy in Provo not fixing the program guide and not adding new VOD options to take care of that.

Broadband Bytes: Wednesday Edition

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  • Popular Mechanics has an article about cable companies recompressing DTV signals. It also talks about bit rates and what makes HD look good or not.
  • Hate being forced to rent your cable box? This guy does to so he filed a class action lawsuit calling it an antitrust law violation. This would be one to watch the outcome here could mean the ability to purchase your HD Cable DVR from the company of our choice. Kind of like how you can walk into Walmart now and pick out a Cable modem of your choice.
  • Just how much bandwidth is enough? Telephonyonline.com has an article with a few metrics. For those of you who read the EDUCAUSE article A Blueprint for Big Broadband these numbers won’t be much different. But a good summerized look at how much bandwidth it takes to push HDTV over that fiber.
  • Wonder what broadband speeds in Utah look like? The Communications Workers of America have their 2nd report out. The data is compiled from the speed test application on their site.
  • This was mentioned in the FreeUTOPIA forums by Capt. Video. It looks like 400 or so residents in Canada are going to own the last mile of fiber to their home. The fiber will terminate at a common peering location. Which they then will be able to choose their provider. The fiber is their’s they can sell it with the house, lease it to the neighbors, even roll the purchase into their shiny new morgage.
  • American Airlines began offering broadband today on flights. Unfortunately, you have to pay $12.95 to use it.

Broadband Bytes: Weekend Edition

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  • Could things get ugly at Qwest? They still have not reached a labor agreement with the Communications Workers of America. Those 20,000 workers could begin a strike as early as Sunday (tomorrow), the day their existing contract expires.
  • “The U.S. may be winning world speed records in swimming at the Olympics, but not in average Internet speeds. According to a new report, the country that invented the Internet has now sunk to 15th worldwide in the percentage of the population subscribing to broadband.” This is a great AP News article that summarizes the state of broadband today in America and compares it with other countries. In other parts of the country, like Oklahoma, they are significantly behind. According to this article, Oklahoma ranks below most other states in broadband, which is a worry for officials. “Infrastructure and connection is so important to economic development…Many future industries will be knowledge-based.”
  • Could fiber optic networks get even more efficient in the future? New technological innovations suggest that by slowing down light, we can speed up the Internet.
  • The FCC has a proposal to build a national, free, wireless broadband network that nearly everyone could access. It is inching forward despite controversy and worries by T-Mobile and others about interference. They are seeking feedback on this plan. I would like to point out though that this will never replace the interference-free, low-latency, high-bandwidth connections that are possible with fiber optic networks.
  • We are in a political season, and broadband has now become an issue for politicians. One politician in Maine (Rep Tom Allen) declared in his race that “Affordable, accessible broadband is essential to our state’s economy,” placing it in importance next to other issues like health care and energy. In Ohio, a local congressman (Rep Zach Space) announced that he secured an agreement to allow a new telemedecine network to provide consumer high-speed service.
  • In the presidential race, net neutrality and other broadband issues have become points of contrast:
    • John McCain’s position: “John McCain does not believe in prescriptive regulation like “net-neutrality,” but rather he believes that an open marketplace with a variety of consumer choices is the best deterrent against unfair practices. John McCain has always believed the government’s role must be rooted in protecting consumers.”
    • Barack Obama’s position: “So here’s my view. We can’t have a situation in which the corporate duopoly dictates the future of the internet and that’s why I’m supporting what is called net neutrality.”
    • John McCain has put forward an excellent bill in the Senate called the Community Broadband Act of 2005, which Barack Obama has not yet signed on to. Interestingly, this bill is supported by EDUCAUSE and more than 40 education and trade associations, public interest groups, etc. This bill would protect the ability of local governments to provide Internet services
      to their communities. Jonathan Karras and I have talked about EDUCAUSE before. Though Obama hasn’t signed on to this bill, he has stated that “Every American should have the highest speed broadband access—no matter where you live, or how much money you have. We’ll connect schools, libraries, and hospitals. And we’ll take on special interests to unleash the power of wireless spectrum for our safety and connectivity.”
  • Many cities haven’t been as successful as they hoped in building various municipal broadband network, primary wireless networks. The first of these was Philidelphia. “Philadelphia’s goal to cover 135 square miles with a cloud of Internet connectivity was ambitious. But the need was undeniable. High-speed Internet access was fast becoming an economic, educational, and social necessity.” This article has an in-depth look at a lot of municipal networks around the country, but no mention of UTOPIA or IProvo.

Update: Qwest reached a tentative agreement with the labor unions.

Rumor: New UTOPIA Providers

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I had an interesting conversation recently with the director of operations at a company that is one of the big players in the telecommunications industry in Utah and this individual confirmed that they were working with UTOPIA to begin to sell their retail telecom service with a UTOPIA transport. When asked when they would start providing service, this individual noted that they wanted to first be confident that UTOPIA would be reliable. It seems that they are doing testing and there’s even some infrastructure already being put in place. This is very exciting news.

If UTOPIA proves successful, I imagine that there will be a lot of service providers that will use UTOPIA as their transport in the cities where it is available instead of Qwest’s aging copper infrastructure. Ultimately, it will put pressure on Qwest to improve their infrastructure even in non-UTOPIA cities or “risk” having UTOPIA go in there as well. As we move into the future, companies and individuals are realizing that speed matters with telecommunications. Qwest has made some commitments to improve infrastructure with fiber-to-the-node; but while that offers improved download speeds, so far there haven’t been any pushes to significantly improve upload speeds which are becoming critical. Hopefully UTOPIA’s success will change that even for the cities it doesn’t service by pushing incumbents to invest in their infrastructure.

Rumor: Nuvont Won't Sell Customers to Broadweave

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The rumor mill says that Nuvont has decided not to sell their customer base to Broadweave and will continue to operate on both UTOPIA and iProvo. This would cause more problems for the new owner of iProvo since one of their key selling points was to control both the retail and wholesale aspects of the network. Between Veracity and Nuvont, around 20-25% of the total retail customer base would not belong to Broadweave including a significant number of high-revenue business customers.

This is the latest in a string of bad news and worse rumors concerning Broadweave. The failure to close on-time combined with persistent rumors that Sorenson has walked away from the deal casts doubts on their financial ability to properly take over the network and the failure of the merger with Veracity robbed them of significant experience with commerical accounts. Much-improved technical support and customer service also can’t overcome the frequent outages of the TV programming guide or the dwindling number of VOD options. Broadweave, meanwhile, chooses to stay silent on clearing the air of rumors and doesn’t offer up explainations for these problems, leaving customers worried about the future of iProvo.

UPDATE: It’s confirmed.

Mayor Spins as Rumors Fly: Just What is Going on With iProvo?

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The Deseret News recently ran an article on iProvo in which Mayor Billings claimed that iProvo is seeing a major turnaround under Broadweave’s direction. Certainly there are areas that have been improved drastically, live support being the most notable. Unfortunately, this improvement in response time has been at the cost of frequent outages with the TV programming guide, a 3-4 hour outage this morning for all Internet users and a lack of general notification as to what the heck exactly is going on.

Mstar is reportedly still receiving payments for customers they sold to Broadweave. Bills have arrived from Broadweave without explanation as to who this bill was from and their purchase of the network. Rates were scheduled to increase, but not notification was sent as to how existing plans will be migrated. This is top-notch management? There’s just two weeks for Sorenson to complete their review of the financing without so much as a peep as to how that’s going.

Amidst all this are many disturbing rumors floating around. CEO Steve Christensen is reportedly having to pay employee salaries out his own pocket. It’s also alleged that Broadweave is using trucks with city plates to do business in Provo. We’ve also witnessed the departure of all iProvo NOC techs and a significant amount of the rest of the staff, a major loss of expertise that cannot be easily compensated for. With the lack of basic notifications and the “silent running” attitude, it’s no wonder that rumors like this continue to persist.

Sounds like Broadweave needs to reconsider who’s doing their PR. Anyone out there willing to fill in the gaps?

Broadband Bytes: Friday Edition

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While Wednesdays edition news related. Today’s links would be about broadband policy. Where should we be going where are we going and how do we get there.

  • A Blueprint for Big Broadband – This is a document that has been mentioned here before by me (Jonathan). I quite like it because its very comprehensive about why broadband matters and an action plan on how to get there. Written by EDUCAUSE which is a higher education community. Their stated mission is to “promote the intelligent use of information technology.”
  • Speed Matters – This site is run by the Communications Workers of America. With similar goals to promote broadband expansion.
  • The ITIF’s take on broadband policy.
  • What the FCC has to say on the topic
  • This last link is a viewpoint article in BusinessWeek from a few days ago on the topic of broadband policy.