[HN Gopher] FCC fines Charter, LTD Broadband more than $3M for R...
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       FCC fines Charter, LTD Broadband more than $3M for RDOF defaults
        
       Author : PaulHoule
       Score  : 81 points
       Date   : 2022-07-25 17:02 UTC (5 hours ago)
        
 (HTM) web link (www.fiercetelecom.com)
 (TXT) w3m dump (www.fiercetelecom.com)
        
       | dylan604 wrote:
       | Another toothless fine from the government. A measly $3M is
       | nothing for these giant corps. If you want a fine to stick, make
       | it a not small percentage of their gross sales. Otherwise, this
       | just gets rolled into cost of business and not a deterrent for
       | future problems.
        
         | m463 wrote:
         | I wish it was a multiplier against the cost of actually
         | installing broadband in some areas.
         | 
         | So if it costs $1m to install broadband in some community, make
         | the fine 3x @ $3m.
         | 
         | If corporations don't have intent and want to risk it, don't
         | take the money.
        
         | Arrath wrote:
         | A clawback of the full amount initially granted out, as well as
         | punitive fines against the revenue from customers in census
         | blocks they were supposed to upgrade but kept extracting
         | profits from through their ancient existent infrastructure
         | seems like a good start.
        
           | dylan604 wrote:
           | Some of these rural places they bid on are so rural that in
           | their mind it is cost prohibitive to incur the expenses of
           | bringing them the service. In their life time of being a
           | customer, they will not likely pay enough to cover that
           | initial construction cost. This is why I'm sure the bean
           | counters have said to just ignore them and pay the fines.
           | It'll be cheaper in the long run for the company.
           | 
           | So maybe make the fines the equivelant to all of the
           | construction fees they are trying to avoid by reneging on
           | their bids + a severe penalty. Make it so that it is more
           | financially attractive to do what they promised.
        
             | wmf wrote:
             | No, fines are not cheaper than simply not bidding on areas
             | they can't serve.
        
               | indigodaddy wrote:
               | Exactly my thoughts as well-- why did they bid in the
               | first place?
        
               | horsawlarway wrote:
               | Because the team drafting the grant application isn't the
               | same team that's evaluating the feasibility of doing the
               | work.
               | 
               | Honestly - if it's anything at all like some of the
               | companies I've peripherally worked for around government
               | grants, the team seeking grants doesn't actually give a
               | flying fuck if they can do the work. Their job is to
               | secure as much grant funding as possible, any way
               | possible.
               | 
               | Implementation planning only happens after securing the
               | grant. At that point it's far too late.
        
               | dylan604 wrote:
               | Also, you may know there are certain areas required by
               | the bid that are less desirable. As long as there is
               | enough desirable in the there to make up whatever
               | punative fines will be levied for failing on the other
               | areas, then it's still a win for the company
        
               | dylan604 wrote:
               | you bid on it so someone else can't get it before you do.
               | you then hope that there's going to be a way to make it
               | work, but in the end, you realize it's just not going to
               | happen. so now, you just take the fine and walk away
        
           | wmf wrote:
           | I'm pretty sure no money was initially granted out because
           | these ISPs defaulted before it got to that point. In that
           | context I think these fines are fair.
           | 
           | Now I want to know what process the FCC has for re-bidding
           | those defaulted areas.
        
             | pavon wrote:
             | Before the RDOF auction began there was a controversy about
             | the FCC not having accurate service coverage data to
             | determine what census tracts should be eligible for the
             | program. The result was that something like $16 billion
             | would be paid out in this first round of auction, and $4
             | billion was held back for a second auction to fill the gaps
             | once we had more accurate data. Then the bidding actually
             | went low enough that the FCC was able to cover all their
             | first-round goals with just $9 billion, leaving $11 billion
             | for the second round. My understanding is that any areas
             | (and clawed back funds) that weren't serviced during the
             | first round will go back into the pot for the next round.
        
             | Arrath wrote:
             | > I'm pretty sure no money was initially granted out
             | because these ISPs defaulted before it got to that point.
             | 
             | I'm gladdened to hear that, at least.
             | 
             | Is there any mechanism for local, independent ISP's to pop
             | up and take advantage of this funding, or is it all
             | tailored towards big-telco?
        
               | wmf wrote:
               | Lots of RDOF funding went to local ISPs you've never
               | heard of so I'd say the mechanism is... RDOF.
        
               | Arrath wrote:
               | Nice! I was honestly curious as this program is well
               | outside my field.
        
         | [deleted]
        
       | londons_explore wrote:
       | So these fines represent 0.3% of the original funding...
       | 
       | Does that mean the other 99.7% of the work has been completed to
       | a satisfactory standard?
        
         | wmf wrote:
         | RDOF buildout mostly hasn't even started and the deadline is
         | 2028. This is a case of ISPs admitting that they can't serve
         | areas they bid on. Around 2030 we'll discover the areas that
         | ISPs still aren't serving even though they got paid to do so.
        
       | susanasj wrote:
       | shameless plug: https://internetforall.nyc/
       | 
       | There is a coalition of organizations trying to get NYC to start
       | its own public broadband provider. If you live in NY, talk to
       | your friends and reps about it, if you don't, get your city to
       | start one. NYC had to sue Verizon because they didn't fulfill
       | their contracts to provide broadband to low income parts of the
       | city (just like Charter and LTD haven't), but there really is no
       | choice except to keep subsidizing these godawful companies unless
       | we have a publicly owned alternative.
        
         | IMSAI8080 wrote:
         | I think the best approach would be publicly owned
         | infrastructure with a mandate to reach all addresses. Run a
         | basic no-frills public ISP service over it at a fair price but
         | the private sector can also operate added value services over
         | the public infrastructure if they want for a nominal
         | maintenance fee.
        
           | jnathsf wrote:
           | This is exactly the approach SF[1] was taking but
           | unfortunately our main political champion, the Mayor, passed
           | away unexpectedly. We were estimating $25-30/mo for 1Gb
           | symmetrical as a utility tax for all households (subsidized
           | for low income).
           | 
           | [1] https://www.washingtonpost.com/technology/2018/07/12/amer
           | ica...
        
         | lelandfe wrote:
         | This is great. The flip side of this is NYC Mesh, which is a
         | group of fed up volunteers building a giant mesh WiFi, along
         | with public access points. It's pretty impressive:
         | https://www.nycmesh.net/map
        
       | intrasight wrote:
       | Seems a good opportunity for Starlink to get some RDOF funds
        
         | NelsonMinar wrote:
         | Starlink is currently expected to get $900M of RDOF funds. I'm
         | curious about how FCC is going to enforce performance.
         | Starlink's bid promised 20Mbps upload speeds but the reality
         | for users is less than 10. Download speeds aren't reliably at
         | the 100Mbps the RDOF bid specifies, either.
         | https://starlinktrack.com/speedtests/region/us
        
           | smoldesu wrote:
           | Just visited fast.com, got 55 Mbps down on a whim (Starlink
           | in Michigan). Sure, it doesn't hold a candle to in-home
           | fiber, but it definitely beats the pants off HughesNet and
           | our local WISP. I'd say for Monday afternoon traffic, I'm
           | getting really solid performance. Definitely worth the
           | $100/month just for the unmetered connection alone.
           | 
           | I too am curious with how far they can push performance
           | though. I've got a hunch that it has something to do with
           | balancing satellites, users and regional coverage, but only
           | time will tell if they make good on their promise. Even if
           | things stay the same as they are right now though, there's
           | nothing else that comes close in my area.
        
           | causi wrote:
           | Sad to say, but 50% of promised performance is spectacular
           | with regard to American telecom companies' rural promises.
        
           | dylan604 wrote:
           | How does RDOF test that? Speedtest.net? Fast.com? Rarely have
           | I received 100Mbps via http transfer mechanisms, and that's
           | the majority of what people do all day. Websites, streaming
           | video, etc are all small discrete downloads via lots of
           | multiple requests. They don't have time to get "up to speed".
           | What that 100Mbps is allow ~10 people to use ~10Mbps at the
           | same time. That's the testing I'd be interested in seeing
           | proof of their service being met.
        
             | wmf wrote:
             | If they do any testing it will probably be through
             | SamKnows.
             | 
             | I don't think 10 people has anything to do with a single
             | household but maybe I'm just an out-of-touch liberal
             | coastal elite. But seriously, one person can use around 25
             | Mbps which is why there's discussion of defining broadband
             | to be 100 Mbps per household.
        
               | dylan604 wrote:
        
             | NelsonMinar wrote:
             | Historically the FCC relied on self-reported numbers from
             | ISPs to verify performance. Unsurprisingly, ISPs lied.
             | Lately FCC has gotten smarter about verifying performance.
             | 
             | The RDOF performance requirements are much more subtle than
             | just average speeds though, there's details about
             | percentiles and time of day and the like. I'm hopeful
             | someone is being thoughtful at the FCC
        
           | Tuna-Fish wrote:
           | Starlink won't get paid until they meet the performance
           | goals, but IIRC they have until 2028 to actually fully meet
           | them. They do have to have a plan of how that would happen,
           | and FCC must accept that plan.
           | 
           | It's public knowledge that they intend to launch a lot more
           | satellites before that, so they are probably counting on that
           | to help them.
        
             | phkahler wrote:
             | >> It's public knowledge that they intend to launch a lot
             | more satellites before that, so they are probably counting
             | on that to help them.
             | 
             | Yeah, but they also want to substantially increase the
             | number of subscribers. It seems a shame to add capacity and
             | not users just to get a cheque from the government for
             | hitting some arbitrary numbers. IIRC they could have bid
             | for a lower speed target that they would probably be
             | hitting today.
        
               | wumpus wrote:
               | The speed categories were set by the FCC, and SpaceX
               | would have gotten nothing if they weren't in the "fast"
               | category.
        
               | Tuna-Fish wrote:
               | > It seems a shame to add capacity and not users
               | 
               | ... I think they will be doing both. They currently have
               | ~2500 sats in the ~53deg constellation. The V2 system
               | that has been approved and is targeting similar latitudes
               | has 3 times the sats, and each sat is claimed to support
               | 9 times the bandwidth of the current ones. So if they
               | need to triple bandwidth per user, they can still
               | increase subscriber count 9-fold and meet it.
        
         | chrisjc wrote:
         | And I believe there is great opportunity for Starlink on the
         | RDOF funds they don't win directly and it might/could come in
         | two forms:
         | 
         | - Others will end up shipping rebranded/white-label versions of
         | Starlink
         | 
         | - Starlink will provide backhaul to others in hard to reach
         | places. Then they'll set up their microwave or 5G based off of
         | that connectivity. (but wouldn't the first option just be
         | easier?)
         | 
         | But is it cheaper to ignore your rural obligations, pocket the
         | money and incur the fines than it is to enter into a contract
         | with your competition?
         | 
         | Somewhat reminiscent of how Tesla took advantage of zero-
         | emissions credits from legacy auto manufacturers that didn't
         | want to (or couldn't) produce their own zero-emissions
         | vehicles.
        
         | InitialBP wrote:
         | Starlink is a god send for my hometown in West Virginia.
         | 
         | Current internet service there is provided by Frontier
         | Communications. They offer "advertised" speeds of 6 Mbps but
         | for years my parents internet came in around 1 or 2 on a good
         | day. Service is abhorrent and they are still using phone lines
         | that will likely never be replaced. They've taken serious
         | advantage of the state of WV and even after a class action
         | lawsuit in 2015 that they settled on I doubt it will ever
         | improve.
         | 
         | My parents finally got starlink setup ~3 months ago, it's
         | around 100 mbps (roughly 100x as fast) and way more reliable
         | even though it's satellite.
        
           | briffle wrote:
           | I have an RV I like to use often, and have been watching this
           | with quite a bit of interest. Additionally, some of the phone
           | companies are starting to have 'real' 5g home connections
           | that compete with cable.
           | 
           | While I live in a suburb now, my last home I moved out of in
           | 2016 was 2M/256k wireless internet, that was $60/month, and
           | only 5-6 miles south of downtown Madison, WI.
           | 
           | Between Starlink and the 5G home connections t-mobile and
           | verizon have been selling lately, its going to be interesting
           | that Rural locations will suddenly see good internet choices.
           | I may be able to finally buy a place in the middle of no-
           | where. Working from home has made that not possible
           | previously.
        
           | dghughes wrote:
           | It's the same in my province for rural areas. I recall fiber
           | optic lines being run in the mid 1990s but then nothing.
           | Politicians promising just basic Internet connectivity at
           | first then "high speed" (the famous up to) for the last 25
           | years.
           | 
           | Here in south-eastern Canada we were some of the first to be
           | in the Starlink coverage area. From what I hear it's doing
           | well not fantastic but better than up to x speed which always
           | seems to end up being less than 1MBps. Luckily I am in a town
           | with lots of options but still the cost is high $100/month
           | for 350Mbps.
           | 
           | Setting aside Musk's abrasive personality, any typical
           | satellite Internet issues, orbital clutter, escalating costs,
           | it's at least something. Internet access is more than just
           | for entertainment these days.
        
           | tuckerpo wrote:
           | The default answer in the cable industry for solving
           | "underserved" communities seems to be run fiber - but that's
           | prohibitively expensive, especially for very rural
           | communities. I believe "underserved" is defined as sub 32
           | MBps down and sub 6 MBps up. There's HFC which alleviates
           | things somewhat but that still implies noise problems and
           | signal amplitude loss for each home's coax tap.
           | 
           | It's nice to have Starlink as an intermediary solution for
           | rural people while the "fiber everywhere" approach takes slow
           | adoption.
        
             | PaulHoule wrote:
             | Is fiber really more expensive to run than coax? I'd
             | imagine that most of the cost is the cost of digging a
             | trench or stringing out cables under the power lines. If
             | you take a close look at the outdoor plant for a cable
             | system there are a large number of large powered boxes that
             | also cost money.
             | 
             | Contrast that to a fiber system which has very few active
             | parts.
             | 
             | I'd imagine that coaxial cable still dominates in many
             | places because it was installed in the 1980s and 1990s.
             | When the cable company wants to upgrade the system it is
             | cost-effective to replace the uppermost nodes of the
             | network with fiber and still leave coax for the last half
             | mile.
             | 
             | I know a rural "cable" company that today runs fiber optic
             | plant in communities with favorable economics. Their
             | primary product is an analog cable signal that is exactly
             | what goes over the coax just modulated on a light beam.
             | It's an economical and reliable system now and it is
             | straightforward to upgrade to GPON or more advanced
             | technologies in that future.
        
               | ThaDood wrote:
               | It might not be so much that the fiber itself is
               | expensive. It might just be the conduit or other delivery
               | mechanism that can be rather costly to run. But in
               | general, fiber is absolutely a viable option for rural
               | communities, usually if the project/roll out is being
               | handled by some local organization (Co-op or municipality
               | or as you sated a smaller cable company). I wrote my
               | thesis on community owned broadband programs in Ohio and
               | did a fair amount of research on the topic.
        
               | PaulHoule wrote:
               | The one entity that is not going to invest in new plant
               | is an entity that has an existing plant.
               | 
               | For instance if there is a phone company with a copper
               | plant that can charge $60 a month for DSL it is obviously
               | unaffordable for them to upgrade to fiber so they can
               | charge $70 a month.
               | 
               | Some other entity might find the new plant is worth
               | investing in but it still fights against the old plant.
               | For instance the phone company is making crazy profits on
               | $60 a month DSL and can probably still make profits on
               | $40 a month DSL. This puts a downward pressure on pricing
               | for a fiber service and also means the fiber plant is
               | going to bypass many possible subscribers because there
               | are plenty of people who will put up with a 100x drop in
               | performance to save a few dollars.
               | 
               | This book
               | 
               | https://www.commentary.org/articles/leslie-lenkowsky/the-
               | zer...
               | 
               | works an interesting case study that was fundamental to
               | the Democratic party becoming advocates for free trade.
               | In particular, the steel industry in the US in the 1970s
               | still depended on open hearth furnaces that were obsolete
               | in every way to the basic oxygen furnaces used in Germany
               | and Japan.
               | 
               | From a marxist perspective, capital is the "master
               | class", maybe even the capital itself (as opposed to the
               | capitalist), embodied in those furnaces. Instead of
               | replacing the furnaces, the US steel industry pursued
               | protectionism which was harmful to the competitiveness of
               | other sectors of the economy: inferior and expensive
               | steel is an ingredient for inferior and expensive cars,
               | buildings, etc.
               | 
               | To analogize, however, the problem is that the copper
               | phone network exists. So long as it exists there are
               | strong incentives to keep using it. It might not be a
               | problem of encouraging investment in fiber as much as
               | forcing disinvestment in copper.
        
               | zbobet2012 wrote:
               | The question isn't _new_ runs of fiber vs coax, everyone
               | just runs fiber for that. It's the cost of upgrading
               | existing runs. HFC (hybrid fiber coax) networks have been
               | the norm for a long time. When the original coax was run
               | it was significantly cheaper to run it even accounting
               | for inflation. Like all major construction projects
               | (which is what a coax replacement is) costs in the US are
               | spiraling upwards:
               | https://www.bloomberg.com/news/articles/2021-12-08/why-
               | build...
        
               | reillyse wrote:
               | Do people even dig trenches anymore? I assume there is
               | already a services pipe that runs along most city roads
               | that has all of the various utilities in it. Am I wrong?
        
               | redtexture wrote:
               | Yes.
               | 
               | Utilities may have been buried 20, 30, 40 or 50 years ago
               | or more. Without regard to future access, changes or
               | modifications.
        
               | [deleted]
        
           | walrus01 wrote:
           | Frontier is _famous_ in the telecom /ISP network engineering
           | community for having the absolute worst shit tier quality of
           | old copper phone wiring running ADSL2+.
           | 
           | Street side pedestals wrapped in plastic garbage bags and
           | such.
           | 
           | What you've got there is probably dialtone POTS copper phone
           | wiring that was installed in the 1960s to 1980s at a very
           | long loop length from where the DSLAM is installed. And wet,
           | dirty connections, noisy with crosstalk.
           | 
           | Until they come up with a firm financial commitment to
           | overbuild their legacy POTS dialtone copper phone wiring
           | outside plant with singlemode fiber it's only going to get
           | worse.
        
           | WebbWeaver wrote:
           | I've never been satisfied with Frontier internet.
        
         | wnevets wrote:
         | Starlink is basically another scam just like Solar City
        
       | crmd wrote:
       | I hope fining Charter .00002 of their 51.6 billion annual revenue
       | gets them to change their ways.
        
       | [deleted]
        
       | user00012-ab wrote:
       | can we fine fiercetelecom.com for breaking the back button on
       | that linked page?
       | 
       | and if you don't want a broken internet, stop sharing sites that
       | break the internet.
        
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       (page generated 2022-07-25 23:00 UTC)