CCG Consulting

Verizon admitted that shutting down the 3G cellular networks cost it about 1.1 million retail cellular customers along with the corresponding revenues. This was long expected because there are still a lot of places where 3G technology was the only cellular signal available to rural customers living in remote areas, and a lot of people were still happy with 3G flip phones even where 4G was available. Verizon has been trying to shut down the 3G network for at least five years, but its original plans got delayed due to discussions with the Federal Communications Commission and then got further

AT&T CFO Pascal Desroches said that the cost of building fiber has increased and that those costs are pushing up against the company’s goal of not spending more than $900 – $1,000 per new fiber passing. Any time I see a broadband provider talking about fiber costs, my first question is: What's included in the costs? AT&T’s low target number highlights two things – its advantage of being able to overlash, and a willingness to skip neighborhoods with higher costs. AT&T’s low target price also highlights that the company is shooting for a higher margin goal than most overbuilders.

How do big broadband providers get away with charging the same prices in urban areas for both slow and fast broadband? An Associated Press article found that one customer was paying the same price for 1 Mbps DSL from AT&T as other city residents were paying for a fiber connection. It would be easy to justify charging the same price for both technologies if AT&T was in the process of converting everybody in New Orleans to fiber, but this is not the case.

I don’t think most folks understand the extent to which businesses are adapting to broadband. One of the best examples I can give you is to talk about a specific business. It’s a casual bar/restaurant that attracts customers by offering good food and arcade games for customers. Consider the following ways this one local business uses broadband:

There is a good chance that if you are reading this blog you are well-versed in a fair amount of telecommunications industry jargon. Every segment of the industry has its own jargon. Wireless folks know what’s meant when a colleague talks about MIMO, QAM, and RAN. Fiber folks understand what is meant by OLT, jitter, and backscattering. Cable company folk can talk about DAA, CMTS, and DOCSIS. The folks that finance broadband networks talk about yield, basis points, and acid tests. Regulators all know what is meant by NARUC, NOI, and CPNI. It’s hard to avoid using jargon.

When ased for an estimate of the cost of building aerial fiber, I always say that the cost is dependent upon the amount of required make-ready needed. Make-ready is well-named—it’s any work that must be done on poles to be ready to string the new fiber. Broadband providers complain when saddled with the full cost of pole replacement. Many of the issues described above should more rightfully be borne by the pole owner. But the federal and most state make-ready rules put the entire cost burden of a pole replacement on the new attacher. Poles don’t last forever.

There is an interesting recent discussion in Europe about net neutrality that has relevance to the US broadband market. The European Commission that oversees telecommunications and broadband has started taking comments on a proposal to force content generators like Netflix to pay fees to Internet service providers (ISP) for using the Internet.

I ask this question after Gigi Sohn [Senior Fellow and Public Advocate at the Benton Institute for Broadband & Society] recently withdrew her name from consideration as a Federal Communication Commissioner. But the objections to Sohn were all the kinds of smokescreens that politicians use to not admit the real reason they opposed the nomination; because she is in favor of regulating broadband and the public airwaves. The big broadband providers and the large broadcasting companies (some companies which are both) have been lobbying hard against the Sohn nomination since it was first anno

Innovative Systems of Mitchell (SD) commissioned a survey of broadband and bundled rates paid by rural residents. This is the eighth year of the survey. The 2022 survey focused on zip codes that are completely rural in order to find out about rural rates. The results come from surveys administered to 841 rural residents. The study showed that the average rate paid for rural broadband increased from $68 per month in 2021 to $71 in 2022.

Several states have already announced that there will be multiple rounds of Broadband Equity, Access, and Deployment (BEAD) Program grant applications. This makes a lot of sense for states that will be receiving a significant amount of BEAD funding.