Now playing at the CRTC: your precarious future on the Internet (2)

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In this post, I follow up on my comments about the first day of the CRTC’s hearing to review its framework for wholesale services in the telecom industry. Since the most significant sector to be affected is Canada’s residential broadband service, I’m summarizing evidence here that was compiled recently by the Open Technology Institute (OTI) that compares broadband in 24 cities in Europe, East Asia and the US, along with Toronto. This evidence is consistent with findings from other international studies. It shows Toronto lags far behind the broadband leaders in available speeds; in the penetration of fiberoptic platforms; in symmetric connectivity (uplink bandwidth matches downlink bandwidth); and, most seriously from a social policy perspective, in the high prices Torontonians are forced to pay. I take this evidence as a strong argument in favor of maintaining and extending the regulatory regime that ensures open access to networks for smaller, competitive ISPs – including not just legacy platforms like DSL, but also emerging fiber platforms. Unless the CRTC includes these next-generation platforms, Canada will fall even further behind in its long slide into slow and expensive broadband connectivity.

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“We are now ready to take our place as the most technologically advanced nation on the planet.” –Stephen Harper, Digital Canada 150, April 2014

Last month the Open Technology Institute released the third in a series of annual studies of broadband speeds and prices in 24 cities in the US, East Asia and Europe, plus Toronto (originally 22 cities). I wrote about OTI’s first report back in November 2012 (CRTC’s 2nd pro-consumer decree: 4 reasons not to celebrate); and I had comments a year later about the second report (Broadband data for Toronto: more bad news and getting worse). Continue reading

Net neutrality now as momentous as Janet Jackson’s nipple (2)

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Happy updates (July 25)

1) Ms Marsha. One of the best illustrations of the political clout wielded by the incumbent US broadband providers lies in their ability to kill any attempt at the creation of muni broadband networks. Twenty states have passed laws banning public-sector broadband alternatives, encouraged by the industry lobbies and those who might be harmed by competition, like poor, struggling Comcast. As I note in the 2nd para below, Marsha Blackburn of Tennessee is one of the great congressional champions of this free-market exercise. She is more determined than ever to ensure nobody in her own state or any state ever gets better, more affordable service. Such is her reputation that in a comment posted to a story in Ars yesterday, a reader added this apology:

A bit off topic: As a Tennessee state resident, I’d like to personally apologize to the rest of the country, hell the world maybe for that matter, for Marsha Blackburn. Another fine example of what you can buy of [sic] you are a corporation with enough money to line the right pockets.

On the upside, Brodkin’s story is entitled “FCC gets its chance to overturn state limits on broadband competition” – reporting on a petition to the FCC from a community-owned electric utility to overturn the state law barring it from providing fiber-based Internet access – in Chattanooga (Tennessee!).

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2) Transparency enforcement. And in other good news related to policing the ISPs, the FCC on Wednesday issued an Enforcement Advisory that holds two surprises. The FCC will fine any broadband provider that intentionally misleads its customers; and the rule behind this notice is one of the few survivors of the DC Circuit appeal by Verizon that vacated most of the 2010 Open Internet Order. The advisory begins thusly:

Providers of broadband Internet access services must disclose accurate information about their service offerings and make this information accessible to the public. This requirement, known as the Open Internet Transparency Rule, has been in full force and effect since 2011. The Transparency Rule ensures that consumers have access to information that helps them make informed choices about the broadband Internet access services they buy, so that consumers are not misled or surprised by the quality or cost of the services they actually receive.

I’ve uploaded the pdf here.

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How about we blame the Republicans instead? (cont’d)

As I was saying in the previous post, FCC Chairman Tom Wheeler should not be getting the rap for the open Internet NPRM issued in May. Especially not for his alleged determination to push through paid prioritization, since a) Wheeler has plainly disavowed it, and b) the Notice spends far more time analyzing other issues I see as a greater threat, like the utter lack of transparency or accountability in what broadband providers sell to the public. And picking this fight with paid prioritization is going to do nothing for the pro-Internet movement in the US or elsewhere (NPRM pdf here).

rep.-blackburn-2Instead, say I, opponents of the big-business, anti-consumer school of thought should pay more attention to what the black hats are saying – who, for convenience, we’ll call “Republicans.” These guys include a broad swath of personalities, from the FCC’s two Republican Commissioners, to the incumbents like Verizon that want no regulation and lots of “flexibility,” to my favorite right-wing curmudgeon, Marsha Blackburn, the Tennessee congresswoman who has succeded in getting a bill passed to call a halt to all that outrageous muni broadband that competes with Comcast, TWC et al. They have main three arguments, all of them pure sophistry, but great headline-grabbers. Continue reading

Just like cable-TV, broadband is still way too expensive in Canada

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Point Topic releases 2014-Q1 global survey of broadband prices

Research consultancy Point Topic has another set of broadband data to add to the dismal news about Canada. Using USD adjusted by the purchasing power parity formula (PPP), they find that of the 90 countries surveyed, Canada ranks in 58th place on the price for a monthly standalone broadband subscription. We’re just under the global mean of $76.61, one step ahead of Mexico. Continue reading

Digital Canada 150: why the Tory plan is risky, not just foolish

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April 17 and a couple of updates

1 – Data caps. Not quite a breaking news update (on my caps comments at the end ofpost-dc150-caps-2 this post), since this story appeared in Ars Technica on March 13. “Time Warner Cable has been offering customers $5 monthly discounts in exchange for giving up unlimited data for the last couple of years, but almost no one has taken the company up on its offer.” In fact, only a few thousand of TWC’s 11.5 million customers have done so.

Here’s the deal: any TWC sub who wants to save the $5 a month can do so by cutting their cap from unlimited to… 30 GB! Jon Brodkin does the math and figures that three months of “excessive” Internet use and that sub loses a year’s worth of savings. The USA’s second most-despised ISP (after Comcast) has a story for that. CEO Rob Marcus claims his customers must value unlimited – duhdoy. Continue reading

Ben Klass post on those outrageous Big 3 mobile price hikes

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It appears Bell, Rogers and Telus are still not making a decent buck from Canada’s textbook wireless oligopoly. So they’ve raised their prices – again, all at once, all by the same amount.

To shed some light on the meaning of this further greed-is-good foray into price-gouging, I’ve asked Ben Klass to let me re-post the comments he made about the recent price hikes on his blog on March 17, under the title Wireless Carriers’ High Flying Prices. Ben documents the obvious and awful truth: out West where there’s competition, prices are… wait for it… lower! Continue reading

The CRTC’s annual report is out: the good, the bad, the weird (3)

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Bricks and mortar with window, Spitalfields, London E1, August 2013

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How can the CRTC do a better job?

As I argued in the previous two posts, the CMR doesn’t have a life of its own; it reflects the CRTC’s larger priorities. The big one here is research and evidence-based policymaking. A close second is the Commission’s still awkward fashion of trying to reach out to the little people – i.e. anybody besides the inner circle. Here are my suggestions for how it can do what it apparently wants to do, only better:

1 – Stop wasting money on online consultations. Redeploy it for real consumer research. Online consultations aren’t just a waste of money; they can also be highly misleading. One reason for their being unrepresentative is that online “surveys” of the public can’t reach Canadians who aren’t online to begin with. Unfortunately, the Commission isn’t going to find any new money for research, not as long as it sticks to the current Expenditure Profile. As shown in the graph below, the Commission’s spending is pretty much flat from 2009 to 2016, especially if these figures were converted to constant dollars…

crtc-budget-2009-16Source: CRTC Departmental Spending Trend

Continue reading

The CRTC’s annual report is out: the good, the bad, the weird (2)

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London, East End council flat, August 2013

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Last time, I described some of the ways in which the CMR has fallen short. I added that the current incarnation of this document marks a sharp departure by reflecting a greater concern for end-user behaviors and consumer welfare. I’ve been looking at the CMR less as a source of information about particular trends, and more as a window through which to gauge how the Commission is allocating priorities (the CMR page is here).

I grouped the details into four areas, and covered 1 and 2 in the previous post:

  • 1- The emphasis on industry vs consumer welfare. That emphasis has changed quite dramatically in the 2013 edition, which stems from the pro-consumer tilt the Commission has taken under the current Chair.
  • 2 – The reluctance to report bad news. This entrenched timidity is still holding back critical discussion. That’s one great advantage the FCC’s structure has: open and sometimes quite vocifeous partisanship, since appointees must include a balance of Democrats and Republicans.

So how about the other two?

Wireless haters take note: our home broadband still sucks too

6755-portobello-1bLondon, Portobello market, August 2013

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Fresh data show Canada is still a mediocre performer among the dozens of nations measured continuously by Ookla on 5 broadband performance variables. Will the CRTC’s 2013 Communications Monitoring Report, due out this week, keep up the old tradition of pretending Canadian broadband is just fine?

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[Sept 24: added pointers to Ookla]

For weeks now, we’ve been pummeled by tales from the wireless wars. As recently as last Thursday, Michael Geist was reminding us how two-faced and hypocritical the incumbents can be, as if that was a surprise. Nothing gets the incumbents foaming at the mouth – behaving like “raving lunatics,” as Tony Lacavera put it – like the prospect of being disciplined by real competition.

I say it’s time to think again about the equally dismal and depressing state of wireline broadband in Canada. Wireline isn’t nearly as sexy as it used to be – not as fodder for controversy I mean. A couple of years ago, we started hearing forecasts from the likes of Cisco pointing to the triumphant rise of mobile everywhere. The mobile forecasts are holding (see Cisco’s mobile forecast for 2012-2017 here). But even 4G LTE isn’t going to make a lot of subs give up their residential DSL or DOCSIS any time soon. So let’s get back to making invidious international broadband comparisons, this time courtesy of Ookla and its ongoing Net Index broadband usage project. Continue reading