Tuesday
Nov152016

New Infographic: 98% Lack Real Broadband Choice, Costing Economy $150 Billion in Overcharges

WASHINGTON DC (November 15, 2016) – The Broadband Coalition, a collection of competitive broadband service providers, released a new infographic today (attached and pasted below) detailing the need for more choice and lower prices in the business broadband market. The Federal Communications Commission (FCC) is set to vote on their Business Data Services Order on Thursday.  

“The FCC must help bring more competition to American businesses large and small,” said a spokesperson for the Broadband Coalition. “For over a decade, business customers have been overcharged and underserved. Acting to curb market power abuse by large incumbent providers is an important first step to moving America away from monopolies and duopolies and into a more competitive future.”

The infographic points out that when competition enters a market, prices drop 19.7 percent and more. It also highlights FCC data showing 98 percent of America’s business locations – including schools, libraries, hospitals and government agencies -- have no more than TWO options for broadband provider.  

It also points to the estimated $150 billion in overcharges in the broken market, money that is being syphoned away from new infrastructure, teachers and nurses and new network investment.  

The infographic also illustrates numbers from former FCC Chief Economist John Baker, who found disturbing trends on the pricing of entry-level Ethernet, which can be priced 10 to 12 times higher than traditional service. 

 

 

About the Broadband Coalition:

The Broadband Coalition: Competitive broadband providers united to preserve innovation, competition and connection for future networks.

To learn more, please visit: http://thebroadbandcoalition.com 

and Customers 4 Competition: http://customers4competition.com

and follow us on Twitter: @bbandcoalition

 

 

INFOGRAPHIC CITATIONS

Data Exposes a Problem Section

FCC Business Data Services Order

https://apps.fcc.gov/edocs_public/attachmatch/FCC-16-54A1.pdf

 

The Cost of Market Power Section

Mark Cooper, the Consumer Federation of America, The Special Problem of Special Access: Consumer Overcharges and Corporate Excess Profits

http://consumerfed.org/wp-content/uploads/2016/04/4-16-The-Special-Problem-of-SpecialAccess.pdf

 

Moving to the Future / Lower Prices Section:

Declaration of Jonathan B. Baker on Market Power in the Provision of Dedicated (Special Access) Services

https://ecfsapi.fcc.gov/file/109211588300227/2016-09-21%20REDACTED%20Baker%20FNPRM%20Supp%20Reply%20Declaration%20Final.pdf

 

All Anchor Institutions Benefit:

SHLB Ex Parte Citing FY 2016 Schools and Libraries Broadband (C1) Demand

https://prodnet.www.neca.org/publicationsdocs/wwpdf/101816shlb.pdf

Thursday
Sep222016

Broadband Coalition Blasts CenturyLink for Crying “Crocodile Tears” as Their Own BDS Profits Increased 47 Percent

WASHINGTON DC (Sept 22, 2016) – Broadband Coalition member, Windstream, submitted a filling today with the FCC pointing out a contradiction in arguments being made by CenturyLink, who has been critical of the FCC’s proposal to bring more competition and savings to the business data service (BDS) marketplace. 

For months, CenturyLink has been telling policy makers they are losing money on business data services. But the Windstream filing uses CenturyLink’s own data to show the opposite is true, with the company’s net operating income per BDS circuit increasing by 47 percent over the past four-year period, from $5,994 in 2011 to $8,807 in 2015.

A copy of the Windstream filing is attached.

In addition to the Windstream filing, the Broadband Coalition released the following statement:

“CenturyLink is crying a river of crocodile tears in hopes it can continue floating its boatload of BDS profits. CenturyLink’s own data shows a 47 percent increase in profits per business data circuit over the last five years. In the same period a leading consumer economist estimates business customers, schools and libraries were sacked with $150 billion dollars in overcharges.

“CenturyLink’s own CFO must have been looking at these numbers when he suggested on a recent investor call that their BDS market was a “high margin” cash cow.

“Business customers want real reform, more choice and lower prices. It’s time for the FCC to take action and help bring more competition and investment necessary for building a better broadband future.”

About the Broadband Coalition:

The Broadband Coalition: Competitive broadband providers united to preserve innovation, competition and connection for future networks.


To learn more, please visit: http://thebroadbandcoalition.com

and Customers 4 Competition: http://customers4competition.com

And follow us on Twitter: @bbandcoalition

Tuesday
Aug022016

Broadband Coalition Statement on Senate FCC/Business Data Service Letter. Coalition Also Blasts #LastCenturyLink for Delay Campaign

August 2, 2016 (Washington DC) – A group of United States Senators have sent a letter of support for more competition in the FCC’s Business Data Services proceeding. Contrary to claims raised by monopoly provider CenturyLink, the letter does not call for a delay in action.

In response to the letter, the Broadband Coalition, a collection of competitive broadband providers, released the following statement: 

“We welcome and applaud the Senators’ support for competition policy that will help rural communities and small businesses. The FCC has compiled the most comprehensive data collection in history, which clearly shows overwhelming market power, indicating monopoly and duopoly control are driving up prices for business customers, schools and libraries.

“Separately, calls for delay by incumbent provider CenturyLink are a sad and empty attempt to keep consumers trapped in last century’s monopoly. Thankfully, the FCC is poised to unleash the future of competition, lower prices and new network growth.” 

“The Broadband Coalition will fight attempts by #LastCenturyLink and others seeking to block competition and punish business customers longing for more choice and better service.”

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About the Broadband Coalition:

The Broadband Coalition: Competitive broadband providers united to preserve innovation, competition and connection for future networks. Members including EarthLink, Level 3 and Windstream filed in opposition to the AT&T petition.

To learn more, please visit: http://thebroadbandcoalition.com

and Customers 4 Competition: http://customers4competition.com

Want to understand the FCC's Business Data Service/Special Access Proceeding? Watch BOB: https://www.youtube.com/watch?v=nUQbdVXnD7c 

And follow us on Twitter: @bbandcoalition

Friday
Jul152016

Broadband Coalition Praise FCC for Denying AT&T’s Bullying Rate Hike Sneak Attack

WASHINGTON DC (July 15, 2016) – Today the FCC rejected an anti-competitive measure by AT&T that would have stripped cost saving options for business customers that promote flexibility and competition. 

 

In response to the FCC action today, a spokesperson for the Broadband Coalition released the following statement: 

 

“We are thrilled the FCC has denied the bullying attempt by AT&T to strip cost saving portability plans that provide flexibility and affordable broadband options. 

 

“AT&T was attempting a rate hike sneak attack that would have increased prices for customers, wireless backhaul and community buildings and we applaud the FCC for stepping in. 

 

“Brazen displays of market power, such as the rate hike sneak attacks we have seen in the past week from large incumbent providers, underscore the immediate need for action on business data service reform.  We encourage the FCC to act quickly and forcefully to fix a broken market and promote competition that business customer’s large and small desire.”

 

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About the Broadband Coalition:

 

The Broadband Coalition: Competitive broadband providers united to preserve innovation, competition and connection for future networks. Members including EarthLink, Level 3 and Windstream filed in opposition to the AT&T petition.

 

To learn more, please visit: http://thebroadbandcoalition.com

 

and Customers 4 Competition: http://customers4competition.com

 

 

And follow us on Twitter: @bbandcoalition

Monday
Jul112016

Rate Hike Sneak Attack by AT&T and Verizon Hits Business Customers with Brazen Display of Market Power

Big Bell Manipulation of Business Data Services Terms and Conditions Another Reason for Stronger BDS Reform
 
WASHINGTON DC (July 11, 2016) – A number of the nation’s leading competitive broadband providers are blasting an anti-competitive ploy by AT&T and Verizon to raise broadband prices on business customers.
 
In filings to the FCC, members of the Broadband Coalition and others across the industry sounded the alarm on the Bell giants’ latest attempt to manipulate the market using anti-competitive lock-up sales conditions to harm competition. They want the FCC to stop a new attempt by AT&T and Verizon to hike prices for broadband lines used by business, schools, libraries, ATM machines and gas pumps.
 
“This rate hike sneak attack by AT&T and Verizon is a brazen display of market power, and a slap in the face to business customers who want more choice, lower prices and better service,” said a spokesperson for the Broadband Coalition.
 
The FCC’s investigation into the sales practices of Verizon and AT&T earlier this year found that their manipulative use of terms and conditions and lock up agreements were keeping prices high and blocking new networks and new competition.  AT&T and Verizon responded to the actions the Commission took as a result of that investigation by eliminating cost-saving provisions and simply raising their rates – a brazen, retaliatory display of market power.
 
The Big Bell companies face the possibility of more competition now that a historic data collection has found market power abuse. The FCC is seeking to take necessary action to reform the broken Business Data Services market, and the Broadband Coalition pointed to this rate hike attempt as a telling sign that the agency must take stronger action to protect non-profit, government, and business consumers.
 
“It’s as if the Big Bell companies were told to stop stealing the lunch money, and retaliated by shoving their competition into a locker,” the Broadband Coalition spokesperson said. “It’s time for the FCC to stop the Bells’ bullying by reforming the Business Data Service market to bring more cost saving competition, investment and innovation.”
 
The FCC must act by Friday, July 15th to stop the rate hike from going into effect.
 
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