CCG Consulting
Frontier Plans to Kill Copper
Frontier CEO Nick Jeffery said that the company believes it will be out of the copper business within five years. At the end of the first quarter of 2023, Frontier still had 9.9 million copper passings compared to 5.5 million fiber passings.
Our Fixation on 25/3 Mbps
Recently Mike Conlow discussed how cellular companies are reporting large numbers of passings on the Federal Communications Commission's broadband maps as having the capability to receive exactly 25/3 Mbps. That isn’t a very fast broadband speed, so why does this make any difference? It turns out that the National Telecommunications and Information Administration (NTIA) is using the number of locations with speeds under 25/3 Mbps to allocate the $42.5 Broadband Equity, Access, and Deployment (BEAD) grant dollars between states. The problem is that, in many cases, the claimed speeds are not
The Public Loves Fiber
The latest Customer Satisfaction Index is out from the American Customer Satisfaction Index (ACSI), which measures the public satisfaction of a wide range of US industries and institutions. The survey this year continued to show that the public has a poor opinion of internet service providers (ISP). As a group, ISPs had an average ACSI annual rating of 68. The only industry with a lower rating is gas stations at 65. Subscription TV had an average rating of 69, and the US Post Office had a rating of 70. But there is some interesting good news for some ISPs.
Subsidizing Lost Cable TV Revenue
I’ve been tracking the number of claimed broadband customers at the largest telephone and cable companies for years. When I was looking at the statistics for the first quarter of 2023, it struck me that the biggest cable companies are now making up for the loss of cable TV customers by increasing broadband rates. For the last decade, the big cable companies have been thriving financially through big annual increases in broadband customers.
Designing for Growth
Growth in neighborhoods and cities means that there is a lot of stress on the existing utilities. As you might expect, the over-taxed utilities are showing the strain. Our telecom networks are not immune from growth problems. The Charter cable network clearly has occasional problems. It’s not hard to imagine that there are neighborhoods where the cable network is overloaded due to growth.
The Latest FCC Maps
Anybody who is intimately familiar with the Federal Communications Commission's National Broadband Map knows that there is a lot of fiction buried in the reporting. There is one huge flaw in the FCC mapping system that has carried over from the previous FCC mapping regime—internet service providers (ISP) self-report the speeds they can deliver. Per the FCC mapping rules, ISPs can claim broadband marketing speeds rather than some approximation of actual speeds.
2023 Broadband Legislation
I guess it’s inevitable that a $42.5 billion grant program would attract a lot of legislative action trying to set some parameters on how to spend the money. Recent hearings conducted by the House Commerce Committee’s Subcommittee on Communications and Technology looked at issues that would expedite the deployment of broadband infrastructure. The subcommittee is considering 32 bills related to broadband infrastructure, many of the bills still in draft form. Following are just a few bills that show the breadth of House legislation being considered:
Is Charter the Largest Rural Broadband Provider?
Charter CEO Chris Winfrey said that the company is the “largest rural provider today.” Charter was the largest winner of the Rural Digital Opportunity Fund (RDOF) reverse auction in terms of passings and is slated to bring broadband to over 1 million rural homes and businesses. The company says it is ahead of schedule and has already built 40% of those passings.
Unwinding the PSTN
The Public Switched Telephone Network (PSTN) network has been used for interconnection to the local incumbent offices and tandem switches, for connecting to 911 centers, for connecting to operator services, for connecting to cellular carriers, or for connecting to other neighboring carriers. We are finally starting to see that network being shut down, route by route and piece by piece. But like everything related to operating in the regulated legacy world, it’s not easy to disconnect the PSTN connections called trunks.
The Rural Cellular Crisis
Some counties have a bigger cellular coverage problem than they do a broadband problem. There are often a much larger number of homes in a county that don’t have adequate cellular coverage than those that can’t buy broadband. I always knew that the cellular coverage maps published by the big cellular carriers were overstated; now I know that they are pure garbage. Before the pandemic, the Federal Communications Commission came up with a plan to spend $9 billion from the Universal Service Fund to build and equip new rural cellular towers—using a reverse auction method.