October dawns with CenturyLink-Level 3 deal still undecided

1 October 2017 by Steve Blum
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Today is the day that a CenturyLink lawyer described as “almost too awful to contemplate”: October is here and CenturyLink doesn’t have permission yet to buy Level 3 Communications, from either the California Public Utilities Commission or federal regulators that are reviewing the transaction.

It’s not really all that horrible. The 30 September 2017 deadline was a target that the two companies set for wrapping everything up. It’ll cost them more to keep the financing arrangements intact, but the tab isn’t going to hugely different from what it would have been if they had a better grasp of what it takes to get big telecoms mergers okayed and allowed more time from the beginning.… More

New FCC rules kick telegraph service into the 21st century

30 September 2017 by Steve Blum
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The Federal Communications Commission isn’t giving up on the telegraph. In fact, it’s giving telegraph companies a turbo-charged boost of free market competition. But don’t worry, it isn’t going completely crazy. The FCC is making it very clear that telegraph service is still subject to common carrier rules. In a lighter touch sort of way, of course, since this new and improved FCC is gung ho about light touch common carrier regulation.

In a wonderfully circular bit of reasoning, the FCC has decided that since there aren’t any telegraph companies, it’s okay for them to discontinue service without giving notice, because that will promote telegraph competition…

No entities filing [service reports] in the past five years indicated that they provide telegraph service, and we are not aware of any interstate telegraph service providers today.

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Political heat rising over California broadband giveaway bill

27 September 2017 by Steve Blum
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A so far successful attempt to funnel $300 million of taxpayer money to AT&T and Frontier Communications in exchange for substandard, monopoly broadband service is generating some unpleasant blowback for assemblyman Jim Wood (D – Healdsburg), one of its chief backers. Assembly bill 1665 was overwhelmingly approved by the California lawmakers in the closing hours of the legislative 2017 session.

It reinstates a tax on phone bills that would be earmarked for broadband infrastructure grants, made under new rules that 1.… More

Measure mobile performance, don't just assume says CPUC draft

26 September 2017 by Steve Blum
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The California Public Utilities Commission might not offer an opinion on how fast broadband service should be in order to support “advanced telecommunications capability”, but it is on track to say whether mobile and wireline service should be lumped together. According to draft comments that’ll be filed with the Federal Communications Commission if CPUC commissioners concur, the answer is a qualified no

The CPUC should share its finding that mobile and residential broadband services are “generally not substitutes”, in order to assist the FCC in its consideration of this issue.

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FCC doesn't know enough about competition, or lack thereof, says GAO

23 September 2017 by Steve Blum
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The Federal Communications Commission needs better information about broadband competition, according to a report by the federal government accountability office. Existing data shows that 51% of U.S. residents only have access to one provider that offers at least a minimum level of broadband service, which the GAO defines using the FCC’s own advanced services standard of 25 Mbps download and 3 Mbps upload speeds.

The agency collects a lot of data, including information about how many broadband providers serve a given market, but not key information about prices and service offerings, the GAO report said

As indicated by FCC’s broadband data, competition does not exist in all areas.

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Electric utilities' fiber business gets harder look in California

22 September 2017 by Steve Blum
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Electric companies are often also in the telecommunications business. In California, the two biggest electric investor owned utilities – PG&E, in northern California, and Southern California Edison – both have extensive dark fiber networks that they lease out to telecoms companies. SCE became a certified telephone company and began actively marketing dark fiber nearly twenty years ago, while PG&E has moved more slowly. But their business models are converging and the California Public Utilities Commission is taking a harder look at how they might be regulated.… More

New York fines Charter $13 million for stalled upgrades

21 September 2017 by Steve Blum
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The New York State State Public Service Commission has slapped a $13 million fine on Charter Communications, as punishment for missing broadband expansion requirements attached to regulatory approval of its purchase of Time Warner Cable systems last year. According to a story by Kendra Chamberlain in FierceCable, Charter’s build out in New York fell far short…

The agreement included statewide speed upgrades reaching 100 Mbps by 2018 and 300 Mbps by 2019, and a timeline for building out its broadband network in chunks of over 36,000 new residents and businesses per year, to be completed by 2020.

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FCC chair Pai sounds smarter when he's not the smartest guy in the room

19 September 2017 by Steve Blum
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Once he left the big stage at the Mobile World Congress Americas in San Francisco last week, Federal Communications Commission chairman Ajit Pai walked a couple of blocks to an event put on by the Lincoln Network, a Silicon Valley political club with a libertarian outlook. It was a much smaller stage, but he seemed completely at home in a room full of smart people – some even smarter than him – who would rather let the market sort things out than to try to fine tune the Digital Age using the blunt, mindless tools of government.… More

War for California's broadband future isn't (quite) over

18 September 2017 by Steve Blum
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The politics of broadband in California are largely driven by the campaign cash that incumbent telephone and cable companies – and sometimes the unions representing their employees – stuff into the pockets of senators and assembly members. That influence is moderated by the energetic, but often futile efforts of broadband activists across the state. So it was with assembly bill 1665, which is on its way to governor Brown’s desk.

If he signs it, AB 1665 will transform the California Advanced Services Fund (CASF) from a useful source of capital for broadband companies that aim to inject at least a little competition into California’s highly concentrated, sclerotic broadband market into a $300 million slush fund, mostly for telcos with rural monopolies, like AT&T and Frontier, but also allowing a taste for cable companies, like Comcast and Charter.… More

CETF audit, more CPUC reforms approved by California legislature

17 September 2017 by Steve Blum
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A second round of California Public Utilities Committee reorganisation was approved in the final hours of the legislative session on Friday night. Senate bills 19 and 385 are heading to the governor’s desk. The main one is SB 19, carried by senator Jerry Hill (D – San Mateo), who has been deeply involved in CPUC reform efforts ever since a massive, fatal explosion of a PG&E pipeline in San Bruno in 2010.

There are general changes that affect the way the commission does business overall.… More