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AT&T To "Pause" Gigabit Internet Rollout Until Net Neutrality Is Settled

An anonymous reader writes AT&T says it will halt its investment on broadband Internet service expansion until the federal rules on open Internet are clarified. "We can't go out and just invest that kind of money, deploying fiber to 100 cities other than these two million [covered by the DirecTV deal], not knowing under what rules that investment will be governed," AT&T Chief Randall Stephenson said during an appearance at a Wells Fargo conference, according to a transcript provided by AT&T. "And so, we have to pause, and we have to just put a stop on those kind of investments that we're doing today."

44 of 308 comments (clear)

  1. yeah... by Anonymous Coward · · Score: 2, Insightful

    Why should we upgrade when we don't really have to?

    1. Re:yeah... by Anonymous+Brave+Guy · · Score: 2

      Why should we upgrade when we don't really have to?

      Because if they don't, someone else will. That's why you also need laws to block local communities from arranging their own local services, you see.

      I'm not normally a huge supporter of the world of corporate politics, but in this case, I hope the likes of Google call their bluff and cost them a staggering amount of money.

      --
      If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
    2. Re:yeah... by Jane+Q.+Public · · Score: 3, Insightful

      Because if they don't, someone else will.

      This is a joke, right?

      No, someone else WON'T, and that's the whole problem. The vast majority of the U.S. has one, and only one, decent low-latency broadband provider. The big ISPs divided it up that way on purpose where they could. Heck, they even said testified as much to the FCC, even though dividing up the country that way is an illegal anti-competitive practice.

      I'm all for market solutions... when there is a real, competitive market. There isn't, in most of the U.S.

    3. Re: yeah... by Anonymous Coward · · Score: 2, Interesting

      Um . . no.

      AT&T is NOT a proactive company. Never has been. The ONLY reason Gigapower is being deployed is due to the threat from Google deploying their own solution and whisking away all of AT&T's customers in the process. Think about the timing of it all and realize it's merely an " oh shit " reaction to Google's announcement ( bluff ? ) to introduce high speed broadband in select cities.

      The recent announcement of Metros rolling out their own Wi-Fi will only hasten this along.

      There is another project in progress called Velocity IP, which is the same concept only targeted at business or high density ( think apartments, condos, multi-tenant buildings ) customer sites.

      This is just AT&T trying to force Net Neutrality rules into their favor by taking their ball and going home.

    4. Re:yeah... by Dahamma · · Score: 3, Interesting

      This is a joke, right?

      Yes, it clearly was actually...

      The vast majority of the U.S. has one, and only one, decent low-latency broadband provider.

      No, the vast majority has two: cable (DOCSIS) and telco (DSL). Though currently in all but a few lucky areas with FIOS, etc, the telcos (like AT&T) are way behind cable. The point of AT&T's upgrade is to finally ditch the ancient copper lines and leapfrog cable.

      The big ISPs divided it up that way on purpose where they could.

      Again, no. The telcos have a monopoly because copper was installed to homes about 100 years ago via the only phone company in existence, the original AT&T. Their markets were "divided" by the antitrust breakup of AT&T, not a bunch of telcos deciding where to offer service.

      Cable has a bit different history, but also had ZERO to do with "ISPs" since the Internet didn't *exist* when cable infrastructure was built into most cities. And in this case the cities are the ones who decided which cable company would get the franchise. Not to mention back then there were hundreds of smaller cable companies - it was almost the opposite of the telco evolution, probably in fact *becuase* of backlash to the AT&T monopoly. And of course it's the US government's fault as much as anyone, now, that those baby Bell telcos were allowed to recombine back into AT&T and Verizon and the cable companies to consolidate into the 5-6 that dominate the market.

      Don't get me wrong, I hate the shitty policies and practices of cable and telco companies as much as anyone, but I'm also a realist. If anyone else wants to compete at this point they will either need to spend massive amounts of money to build the infrastructure (we can only hope Google can pull it off), or come up with some completely new technology/infrastructure (metro wifi, LTE+, etc) that is cheaper to deploy.

  2. Yeah right by Anonymous Coward · · Score: 5, Insightful

    Yeah, right, AT&T. You were totally about to give us awesome internet but the big bad government stopped you? Please.

    1. Re:Yeah right by halfEvilTech · · Score: 5, Insightful

      Kind of hard to pause something the said they wanted to do. Which means they didn't even start it. Maybe notes on the back of a napkin. But that would be giving them to much credit.

      This is about holding customers hostage on promised upgrades and throwing a tantrum over possible Title II reclassification. Even though they already enjoy the benefits of Title II (subsidies) without having to be classified as such.

    2. Re:Yeah right by zlives · · Score: 5, Informative

      hey maybe they can just return all the fucking money they took to provide broadband and never did all these years

    3. Re:Yeah right by NotSanguine · · Score: 5, Informative

      This money.

      And that money.

      --
      No, no, you're not thinking; you're just being logical. --Niels Bohr
    4. Re:Yeah right by Holi · · Score: 4, Informative

      I don't know maybe the 200 billion we gave in the 1996 Telecommunications Act.

      --
      Sorry, teleporters just kill you and then make a copy. A perfect, soul-less copy.
    5. Re: Yeah right by AvitarX · · Score: 2

      I think it's more of an admission they'll only give you fast Internet if they can absolutely make sure you can't use it.

      --
      Wow, sent an e-mail as suggested when clicking on "use classic" banner, and got a fast response that addressed my msg
    6. Re:Yeah right by fustakrakich · · Score: 2

      By what incentive would they want to do that? Everybody just got done reelecting their servants back into office. I don't see how AT&T is the problem. The voters gave their consent through apathy and complacency. Those that deny that are only fooling themselves.

      --
      “He’s not deformed, he’s just drunk!”
    7. Re:Yeah right by nine-times · · Score: 5, Interesting

      Yeah, it's hard to see this as anything other than a threat, that if the government doesn't do what AT&T wants, they might just take their ball and go home. I can see how someone would think this is fair, in the sense that businesses can't make good decisions without knowing what "the rules" are, but at the same time, you can only take that so far.

      It seems like businesses and rich people are constantly pulling this act. "I'm afraid that if you tax me at all, I'll just have to pull all my money and business out of the country and operate someplace where they don't have taxes." or "Well, we can't have laws barring us from acting immorally and unethically. If we can't be completely unfettered, then we can't get anything done and our business will fail!" At some point, I think we just have to say, "Sorry, but we can't just let you do whatever you want with no boundaries. The reality is, we all operate within constraints, and we all have to cope with an uncertain future. If you can't operate with fair and honest business practices within a framework that allows our society to grow in a healthy direction, then we'll find someone else to fill your shoes." I mean, really, AT&T doesn't see the benefit in growing and upgrading their network? Fine, let's rip their network out and replace it with public infrastructure. I suspect that if those were the options, AT&T would find that it could manage to upgrade their network while operating within the principles of net neutrality.

    8. Re:Yeah right by zlives · · Score: 3, Funny

      it worked out just fine for douchbags, i mean att

    9. Re:Yeah right by tlhIngan · · Score: 4, Interesting

      Kind of hard to pause something the said they wanted to do. Which means they didn't even start it. Maybe notes on the back of a napkin. But that would be giving them to much credit.

      This is about holding customers hostage on promised upgrades and throwing a tantrum over possible Title II reclassification. Even though they already enjoy the benefits of Title II (subsidies) without having to be classified as such.

      Exactly.

      It's all about politics. Even if AT&T never had any plans for gigabit internet, just saying they are "pausing" puts pressure on the government.

      Because now the other party will just go and say "Look, it kills jobs and investment" even though it killed 0 jobs and $0 investment because they never intended to do it. It's just to say "look, we WERE going to, but this new legislation makes it hard for us to justify, so no".

      Strictly a political play - try to call them out on it by saying "we'll refund you the cost of the equipment you already ordered when you made the announcement" and you'll find there were no POs issued, no supplier got any order from AT&T for gigabit-capable equipment, etc.

    10. Re: Yeah right by ksheff · · Score: 2

      Or if Google announces another Google Fiber city that would take a lot of their existing customers. Then they'll roll it out, but just in that market. The sooner that ISPs are required to lease their infrastructure to rivals, the sooner that customers will have real choices and the result is lower prices and higher speeds like in other nations. Until then, they will milk their customers for all they're worth with the existing offerings.

      --
      the good ground has been paved over by suicidal maniacs
    11. Re:Yeah right by aaron4801 · · Score: 2

      No link to the actual announcement, but Techdirt says AT&T, "announced yet another $3 billion fixed-line CAPEX investment cut just last Friday."
      In other words, they cut investment, then hear from the President, then blame the cut on the President's plan.
      Typical AT&T bullshit.

    12. Re:Yeah right by tippen · · Score: 2

      Kind of hard to pause something the said they wanted to do. Which means they didn't even start it. Maybe notes on the back of a napkin. But that would be giving them to much credit.

      Really? The 900 Mbps+ up and down I enjoy at my house from AT&T Gigapower is imaginary?

      AT&T pausing their gigabit rollout when the President announces that he wants to make broadband a utility is completely reasonable. They have no idea what is going to happen, so it is hard to justify continuing to spend $$$ with the network upgrades.

      Now, that's COMPLETELY different than not rate-shaping different types of traffic or trying to double-dip by charging both the sender and the receiver for traffic. Pretty much all of the ISPs are being butt-nuggets on that one.

    13. Re:Yeah right by stillpixel · · Score: 2

      Exactly, total BS that only and I mean ONLY those who are bought and paid for by the big telecom lobbies and those who are completely stupid will fall for this.

    14. Re: Yeah right by smooth+wombat · · Score: 3, Insightful

      They exist to make a profit.

      No, they don't. Everyone always get this wrong. Companies exist to provide a product or service. Profit is the byproduct of this existence and which allows the company to continue to provide the product or service.

      Didn't you watch Elmer Fudd when you were growing up? (As a side note, I find it hilarious it is explicitly stated that as a result of having more efficiency the company can pay higher wages. How naive we were back then)

      --
      We will bankrupt ourselves in the vain search for absolute security. -- Dwight D. Eisenhower
    15. Re:Yeah right by drinkypoo · · Score: 4

      hey maybe they can just return all the fucking money they took to provide broadband and never did all these years

      Yeah, let's go back to the money that Pacific Bell got, let alone Southwestern Bell. I'm sure that there's similar stories in other regions. But I consider AT&T on the hook for that. Pac Bell was claiming they would provide DSL to 100% of their customers back when they were still a thing. Over a decade later and the company that bought the company that bought Pac Bell still hasn't done it. They've spent a lot of customer money to erode customer rights, though. I wish people would stop giving them money when there's any alternative.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    16. Re:Yeah right by Immerman · · Score: 2

      As it happens I protest-vote a straight third-party ticket whenever such a candidate is available, unless one of the lizards is so dramatically worse than the other as to justify voting against them. But it's a well understood problem of first-past-the-post voting systems that they *always* devolve into a one- or two- party system, those are the only mathematically stable positions in the game. You have to vote for someone who has a realistic chance of winning if your vote is going to count at all, and that mostly means voting for someone who already has an established voter base. It's basic game theory - something we're actually pretty good at evaluating intuitively. Voting for the candidate you truly want will split the vote for the candidate you would have been okay with, increasing the odds that your least-favorite candidate will win. And most everyone who actually votes in this country does so because they have a strong opinion about who should win (or at least who should lose)

      Someone with a bipartisan appeal can somewhat sidestep this issue, but you still have the problem that unless they can convince the voters that they have a realistic chance of winning, nobody who wants their vote to count will vote for them. A massively well-funded campaign might be able to overcome the perception that they don't have a realistic chance, but getting the funding would almost certainly require them to swear allegiance to the same wealthy powers who own the existing parties, so it solves nothing. Hence my conclusion that the only realistic way to get a truly independent candidate into a major office is to somehow motivate the non-voters who were planning to throw their vote away anyway. Only those with nothing to lose are truly free to gamble on long-shots.

      --
      --- Most topics have many sides worth arguing, allow me to take one opposite you.
    17. Re: Yeah right by BronsCon · · Score: 2

      They built our network for us, using our tax dollars, and our parents', and our grandparents'. They're only able to claim it as their own because there aren't enough of us who both know that fact and care enough to do anything about it to actually accomplish the task of reclaiming it from them. They should have to lease space on it from the public, just like any other provider wishing to use it.

      --
      APK quotes people (including myself) without context and should not be trusted. Just thought you should know.
  3. What rhymes with "douchebag"? by vinn · · Score: 3, Interesting

    AT&T. I would hope Comcast or someone would take this news and announce they'll be expanding service to try to edge out AT&T, but we're much more likely to just end up and an announcement from Comcast that they'll do the same thing.

    --
    ----- obSig
  4. Not surprising by boristdog · · Score: 4, Interesting

    AT&T has found a new excuse to not invest in their infrastructure.

    I'm not an AT&T customer, so I can only assume that AT&T does not ask its customers to pay for bandwidth (e.g. it gives its services away for free), and AT&T relies on content providers for all of its profit? That's the only situation I can imagine where such behavior makes sense.

  5. It was mostly lies to begin with. by andywebs · · Score: 5, Insightful

    They were never going to widely deploy 1Gbps anywhere, in the first place. They had stated to share holders that their capital expenditures would hardly go up to implement this in 35 cities, meaning they weren't really going to be doing very much anyway, other than uncapping existing fiber from dsl speeds.

    http://www.dslreports.com/show...

  6. Dear Taxpayers, Screw you! - ATT by duck_rifted · · Score: 3, Insightful

    We pay for infrastructure expansion with our taxes, and ATT is legally obligated to spend that money as mandated. Considering that they are blatantly telling us that they refuse to do that, I think an audit is long overdue.

  7. Re:if only by Kohath · · Score: 2

    AT&T UVerse is the main competition for your local cable monopoly. But only where they already operate. I use them. They're only OK. But it's really nice to have a choice other than Time Warner.

  8. Re:Bah by zlives · · Score: 2

    nope, that's monopoly. supported by our tax dollars.

  9. The modern day "Chewbacca Defense" by MetricT · · Score: 5, Insightful

    "We're going to stop doing that thing that we've been promising for years that we were gonna get around to doing one of these days, but never actually got around to doing, because OBAMA"

    It's sad, but adding "Obama" to any argument has become the modern day equivalent of the "Chewbacca Defense", and has been used to rationalize some profoundly stupid decisions. Even sadder, because it seems to work.

    I'm a moderate (r)epublican, and it's *lonely* nowdays. The intelligent ones liked David Frum have been muffled or sidelined. Meanwhile, the Wingnut Brigade as personified by Ted Cruz is always on the lookout to shoot the public in the foot for the sake of rich people.

    1. Re:The modern day "Chewbacca Defense" by Anonymous Coward · · Score: 2, Insightful

      As good as your post is, I can't help but add that for over a decade now the Democrats are the moderate Republicans.

  10. Re: Obama screwed us intentionally or intentionall by Gr8Apes · · Score: 2

    He killed it when he appointed Wheeler to head the FCC. He was unanimously approved, meaning very deep non-partisan pockets were behind him becoming the FCC chairman. That should scare everyone considering how grid-locked and partisan congress has been over the past couple of terms.

    --
    The cesspool just got a check and balance.
  11. Regime Uncertainty by jtwiegand · · Score: 2

    While it is very easy to poke at AT&T for this decision, it is also a very understandable position to take. AT&T doesn't know what the laws or rules are going to be after the fact. We are probably not going to get true Title II net neutrality, and quite frankly, 80 year old law really shouldn't apply to something that is fundamentally more complex than a telco or OTA network, and applying the same kinds of laws to the internet providers is legally and technically stupid. There are a variety of very good reasons why Title II, or Title II-like laws are a very, very bad idea for the internet.

    But basically AT&T's logic is sound. They don't want to roll out a huge upgrade when they have no idea of the legal regime they will be operating under. And there decision is understandable and rational.

    1. Re:Regime Uncertainty by sjames · · Score: 4, Insightful

      If there was any indication that their 'plans' were ever more than paper, we might not laugh so much at the concept of pausing them. That's like taking time out from your sleep to get a quick nap in.

      I was going to cure cancer and create the fountain of youth today, but I had to put those plans on hold because the Easter Bunny told me that some retail stores would be open on Thanksgiving.

    2. Re:Regime Uncertainty by NotSanguine · · Score: 4, Informative

      No, no one knows whats going on now legally speaking, that's why we're having this discussion. The Verizon vs FCC decision removed that certainty. They know what the regulatory regime might be, but they don't know what it is going to be. The FCC chair is looking at splitting the baby which doesn't really sound like a clear indicator of what he's going to do from a legal perspective. It appears that the FCC chair wants to allow ISPs to prioritize certain traffic for security and use (e.g. e-mail traffic doesn't need the kind of priority as streaming video) because not all traffic deserves the same level of attention from the ISP, but not do so for business reasons (e.g. Time Warner shouldn't be allowed to hobble Netflix streaming service). But at the same time, he appears to be distancing himself from Obama's plea for Title II. Writing this into law is more complex than simply saying what the FCC chair said he wanted: "What you want is what everyone wants: an open Internet that doesn’t affect your business."

      Oh my. Title II classification worked quite well until 2002 when the FCC reclassified broadband providers as "Information Services" under Title I. Which was so obviously a great move, because we had so much less competition then. Not only that, the big broadband providers were so poor before that, they were going out of business. Thank goodness for that! Otherwise, the Internet would have failed completely and we'd all be using punched cards and telexes again by now. Not.

      The last twelve years have seen increasing consolidation, local monopolies and duopolies, less competition, higher prices for basic consumer connectivity, more abusive Terms of Service for consumer connections, throttling of competitive content providers who threaten the media content distribution strangleholds that the big broadband providers have.

      Title II reclassification isn't the whole of the answer, just a small part. But it's a start at least. Unfortunately, if you tell the same lies over and over again ("we're so poor that reclassification will stop us from upgrading our networks" and "Forcing us to be common carriers will destroy all innovation on the Internet") people start to believe it.

      It's just a smokescreen for the big ISPs to keep protecting their abusive business model and maintain their huge profits in a non-competitive marketplace. These big ISPs are holding back innovation in last-mile technologies, despite being given USD$200 Billion in subsidies over the past 18 years to do otherwise.

      --
      No, no, you're not thinking; you're just being logical. --Niels Bohr
  12. Re:Proof positive by NotSanguine · · Score: 2

    You can foresee the pig fuck that 'net neutrality' will become in the hands of the clueless federal bureaucrats?

    Seriously, we can define QOS so it's not in violation of net neutrality. What do you figure the odds of DC morons getting it right? What damage will the misregulations cause?

    Please give me the name of just one ISP/transit provider/Tier 1 provider/etc. that honors QoS tags from networks other than their own. Just one. I'd love to hear about it. But I won't, because it doesn't exist.

    --
    No, no, you're not thinking; you're just being logical. --Niels Bohr
  13. Nice internet you've got here... by Deadstick · · Score: 2

    ...You know the rest.

  14. We can end this nonsense today. by C3ntaur · · Score: 4, Interesting

    Seems to me that if ISPs want to selectively favor content, they should be held responsible for *any* content passing through their systems. Start throwing their execs in prison for distributing whatever illegal material passes through, and watch how fast they scramble to be classified as common carriers.

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    Loading...
  15. More techdirt goodness: Fiber To The Press Release by gavron · · Score: 3, Informative
  16. Perfect! by CauseBy · · Score: 2

    Are you saying that if we mandate net neutrality, AT&T will close up shop and blow away in the wind? Two birds one stone! Let's make this happen!

  17. Re: Obama screwed us intentionally or intentionall by Pablew+Nopl · · Score: 2

    Because his opponents were worse and no third party has any chance of winning thanks to the first past the post system used in American elections.

    Nonsense. Voting for evil would still be disgusting even if third parties had zero chance of winning. And it's a self-fulfilling prophecy, too. How is any candidate ever going to win if no one ever takes a chance? It might be low, but giving up just brings the chances down even further. In addition, they don't even need to win in order to send a message to the two scumbag parties.

    See what good it accomplishes.

    We have the TSA, the NSA's mass surveillance, unfettered border searches, all sorts of warrantless surveillance, constitution-free zones, a ridiculous number of corrupt government agencies, draconian copyright laws, DUI checkpoints, rampant warmonger, and all sorts of unconstitutional nonsense. What good has voting for republican or democrat scumbags ever done? None. It's idiotic. I'd say you deserve all of this, but unfortunately, I'm suffering the consequences of your foolish choices too.

  18. Re:Obama screwed us intentionally or intentionally by Pablew+Nopl · · Score: 4, Interesting

    "False dichotomy" as in "there are more than two choices."

    The parties, and their politicians, have strikingly different platforms with strikingly different historical outcomes.

    Bullshit. That's only true if you concentrate on a select few issues. When it comes to getting us into war (or bombing other countries and saying it's something other than war), or violating the constitution, both parties are largely the same. You have The One Party to thank for the TSA, the Unpatriotic Act, citizen assassinations, the NSA's mass surveillance, unchecked corruption in government agencies everywhere, and a host of other freedom-violating nonsense. They're the same in pretty much all the ways that actually count. The economy is a truly minuscule issue. Both parties refuse to shrink military and defense spending as it should, and when someone shrinks it *slightly* (nowhere near as much as it should be), whichever party didn't make the decision gets angry. Both parties are in on the "The terrorists, child molesters, and other bogeymen are going to get us!" scam, as well.

    But hey, feel free to pretend otherwise if it helps you justify not voting in national elections.

    I strictly vote third party, because there are next to no good candidates in The One Party.

  19. Re:Obama screwed us intentionally or intentionally by Shakrai · · Score: 2

    I really don't see the point in discussing political science with someone that dismisses the economy as a "truly minuscule issue." All I'll say on the subject is that the United States Constitution is is interpreted by human beings, like any other document. In the case of our political system there are nine authoritative voices on the subject and to the best of my knowledge none of them are commenters on Slashdot. If you dispute the current interpretation you're welcome to crack open one of the boxes to be used in the defense of liberty. They go in this order: soap box, ballot box, jury box, ammo box.

    For the record, I don't regard my liberties as less important than money; I was simply stating the fact that it's hard to care about liberty if one is starving to death. The economy matters even in non-democratic societies, have you ever heard the expression "bread and circuses?"

    --
    I want peace on earth and goodwill toward man.
    We are the United States Government! We don't do that sort of thing.
  20. No you aren't by EuclideanSilence · · Score: 2

    You are not "a republican". You are not "a democrat". Those are abbreviations for political parties. Unless you actually see yourself as strongly advocating for republican or democratic forms of government, you are not what you say.

    You might say you support the XXX party. But don't delude yourself, they don't support you, and you are not them.

    Republican party is not a philosophy. Democrat party is not a philosophy. You can't even agree or disagree with them. They are corporations (literally) that buy and sell elections. And you know the saying, if you aren't the customer, then you are the product. You aren't buying an election from them? Then you are the product.