May 2011

Electric Co-op Gets Head Start on Stimulus FTTH Project

Although not big winners, electrical utility companies were among the companies that won funding for broadband projects through the broadband stimulus program. And as a winning project involving Missouri-based Ralls County Electric Cooperative reveals, electric company projects may be some of the first to actually begin serving customers. The cooperative was one of the first stimulus project winners in January 2010, garnering a $9.5 million loan and a $9.5 million grant to build a fiber-to-the-home network serving 4,600 households, 311 businesses and 58 community anchor institutions. In its project summary, the cooperative noted that its plan would minimize construction costs and red tape by using its existing pole-grid and rights-of-way. That ability also likely played a role in enabling the company to already begin offering service at a time when money other stimulus winners are just breaking ground. Although RCEC still has considerable construction to complete, 100 people already have signed up for its broadband service.

Broadband Readiness Index

Connected Nation unveiled its which assesses the broadband infrastructure for all 3,219 counties in the United States. The Index shows that counties containing 45.6% of the nation’s households still fall significantly short in meeting National Broadband Plan goals of fixed and mobile broadband access for both current and future needs.

The Index measures how close counties are to reaching each of these goals:

  1. Universal Broadband for Today’s Needs: universal access to broadband at 3 Mbps download and 768 Kbps upload speeds, roughly commensurate with the Plan’s National Broadband Availability Target;
  2. Mobility: 98% availability of mobile wireless service, proposed by the Wireless Innovation Initiative; and
  3. Robust Broadband Markets: 85% availability of access to 50 Mbps fixed networks, which is comparable to the Plan’s goal that 100 million households have access to such networks by 2015.

Comcast threatens funding for nonprofit after tweet about FCC Baker’s jump

Careful what you tweet, especially if you rely on Comcast. That’s the message received by the Seattle-based nonprofit Reel Grrls, who was told it had lost $18,000 in funding for a teen summer film camp after it sent a tweet about FCC Commissioner Meredith Attwell Baker’s jump to the cable and media giant. In an e-mail to Reel Grrls, Steve Kipp, a vice president of communications for Comcast in Lynnwood (WA) wrote: “Given the fact that Comcast has been a major supporter of Reel Grrls for several years now, I am frankly shocked that your organization is slamming us on Twitter. I cannot in good conscience continue to provide you with funding — especially when there are so many other deserving nonprofits in town.”

The offensive tweet:

“OMG! @FCC Commissioner Baker voted 2 approve Comcast/NBC merger & is now lving FCC for A JOB AT COMCAST?!? http://su.pr/1trT4z #mediajustice”

After media inquiries, Comcast spokeswoman Sena Fitzmaurice said Thursday afternoon in a statement that Comcast had made a mistake.

Comcast's Mark Lazarus to succeed NBC's Dick Ebersol as head of NBC Sports

Mark Lazarus, a former high-ranking executive at Time Warner's Turner Broadcasting, will succeed Dick Ebersol as the top sports executive at NBCUniversal.

Lazarus was brought in by new NBCUniversal owner Comcast Corp. last December to oversee the media giant's cable sports channels and work on integrating that unit with NBC Sports. When he was first tapped by Comcast, the assumption in the industry was that he would ultimately succeed Ebersol. However, that it happened this soon, less than four months after Comcast closed on its deal to take control of NBCUniversal, was a surprise. Comcast had been working on a new employment agreement with Ebersol, however they could not come to terms on a pact or on Ebersol's future role at the network. In Lazarus, Comcast will have a much lower-profile individual in that role, although also one who has not had the same level of experience in producing major events such as the Olympics.
Ebersol’s departure raises immediate questions about whether Comcast will be less aggressive about acquiring the rights to the 2014 Winter Olympics in Sochi, Russia, and the 2016 Summer Games in Rio de Janeiro, which will be negotiated in Lausanne, Switzerland, in June. He said that he would not attend the auction, at which ESPN and Fox are expected to be bidders, and that he intended to stay at NBC until the end of June.

Parents group flags NBC show for nudity clause

The Parents Television Council (PTC) is raising concerns over an NBC show set to debut this fall that required cast members to sign a nudity clause. The watchdog group is calling out "The Playboy Club," which is set on one of the more infamous nightclubs in Chicago during the 1960s. Contracts for the show stipulated that nudity or simulated sex may be required of cast members.

Comcast Interactive To Fund Minority Businesses

Comcast Interactive Capital, the venture capital arm of the nation's largest cable operator, said that it will provide seed funding for five minority businesses through a partnership with DreamIt Ventures.

The partnership, called the Minority Entrepreneur Accelerator Program, is Comcast Interactive Capital's first investment initiative from the $20 million fund created by the cable giant as part of its NBC Universal joint venture and committed to expanding opportunities for minority entrepreneurs. Comcast Interactive Capital and DreamIt are now accepting applications and will select five minority-led startups to participate in DreamIt's three-month accelerator program taking place in Philadelphia this fall. The deadline for applications is July 8 and the program will commence on Sept. 9.

Verizon eyes family data plans

Verizon Wireless expects to offer family plans for data services supporting multiple devices including smartphones and tablet computers at some point in the future, according to a top executive of parent company Verizon Communications.

Verizon Wireless plans to kick off pricing changes this summer by eliminating smartphone plans that allow unlimited Web access for a flat fee. It will replace them with tiered pricing that forces heavy data users to pay more for mobile data. After this change the company will look to soften the blow by offering more options such as family plans for data services, Chief Financial Officer Fran Shammo. While families can share a bucket of minutes for phone calls today, each family member with a smartphone has to pay $30 per month each for data services. If they own a tablet computer they pay another separate data fee.

Google Rejects Skyhook’s Allegations Over Phone-Location Service

Google rejected allegations that it undermined plans by Samsung Electronics and the former Motorola to use a competing location-finding service on Android-based mobile phones.

Skyhook Wireless, a closely held software company, claimed in a September lawsuit that Motorola and Samsung were willing to pay for its service until Google threatened to cut off the phonemakers’ access to third-party applications in the Android Market. Motorola and Samsung rely on Google’s Android operating system for some of their devices. Google said it did nothing improper with regard to any contracts Skyhook had with the phonemakers, according to a May 13 filing in response to the lawsuit in Suffolk County, Massachusetts, Superior Court in Boston. The service, a software system that uses Wi-Fi positions, GPS and cell-tower triangulation to pinpoint a phone’s location, is used by advertisers and businesses to target potential customers.

FCC's Telephone Subscribership Report

The Federal Communications Commission released its latest report on telephone subscribership in the United States, presenting subscribership statistics based on the Current Population Survey (CPS) conducted by the Census Bureau in July 2010. The FCC estimates that 96.0% of all households in the United States had telephone service. The report also shows subscribership levels by state, income level, race, age, household size, and employment status.

In July 2010:

  • The telephone subscribership penetration rate in the U.S. was 96.0%, an increase of 0.3% over the rate from July 2009.
  • The telephone penetration rate for households in income categories below $15,000 was at or below 94.6%, while the rate for households in income categories over $50,000 was at least 97.9%.
  • Among the states, the penetration rates ranged from a low of 93.0% to a high of 99.0%.
  • Penetration rates ranged from 93.3% for households headed by a person under 25 to at least 96.1% for households headed by a person over 55.
  • Households with one person had a penetration rate of 94.1%, compared to a rate of 96.9% for households with four or five persons.
  • The penetration rate for unemployed adults was 95.4%, while the rate for employed adults was 96.8%.

Setting the record straight on the North Carolina level playing field bill

[Commentary] North Carolina’s Level Playing Field / Local Government Competition Bill is not just about broadband. It’s about government competing in a variety of businesses—cable TV, telephone, Internet access—anything that can be offered by a business over a wire. Second, and more importantly, North Carolina’s bill does not “prohibit” cities from competing against private providers -- it only sets ground rules if they do.

This is necessary because there are no rules currently. This means that cities have been free to discriminate against private business, they have been free to cross-subsidize competition with monopoly utility revenues, they have been free to incur debt without taxpayer approval, and they have been free to subsidize their competition through tax exemptions not available to private industry. Has any of this actually happened in North Carolina? You bet. None of the cities in North Carolina have provided broadband to people that didn't already have it. Clearly there are some areas in North Carolina, like every state, that do not have adequate broadband service because there is not a business case for providing service in those areas. As the North Carolina General Assembly has taken the important step of clarifying the circumstances under which cities can enter the market to provide a service already being provided, hopefully the General Assembly, private industry, and public officials can now have a discussion about working together to extend service to areas that don't have it.

[Trathen is with the North Carolina Cable and Telecommunications Association]