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Gigabit Internet With No Data Caps May Be Coming To Rural America (arstechnica.com)

Jon Brodkin, writing for Ars Technica: The Federal Communications Commission is making another $2.15 billion available for rural broadband projects, and it's trying to direct at least some of that money toward building services with gigabit download speeds and unlimited data. The FCC voted for the funding Wednesday (PDF) and released the full details yesterday (PDF). The money, $215 million a year for 10 years, will be distributed to Internet providers through a reverse auction in which bidders will commit to providing specific performance levels. Bidders can obtain money by proposing projects meeting requirements in any of four performance tiers. There's a minimum performance tier that includes speeds of at least 10Mbps downstream and 1Mbps upstream, with at least 150GB of data provided each month. A "baseline" performance tier requires 25Mbps/3Mbps speeds and at least 150GB a month, though the data allotment minimum could rise based on an FCC metric that determines what typical broadband consumers use per month.

32 of 147 comments (clear)

  1. Promises, promises by Anonymous Coward · · Score: 5, Insightful

    The ISPs shouldn't receive a penny until they do what they say they'll do. How much money are we going to give these guys for promises they never keep?

    1. Re:Promises, promises by mysidia · · Score: 3, Insightful

      The ISPs shouldn't receive a penny until they do what they say they'll do.

      The ISPs need funding for their projects.... My suggestion would be that the money granted, at least 90% of it should be a LOAN, which will be automatically cancelled/forgiven with a graduated schedule as the project progress, subject to an independent reviewer indicating that they are performing, and if they fail to perform, then the FCC's regulatory authority will be used to recover the payments.

      Also, it should be setup as a debt partially secured by the ISP's software and network equipment.

      This way the grant is an award, but only if they follow through.

  2. FTFY: "With no data caps TO START WITH" by kheldan · · Score: 4, Insightful
    U.S. ISP Business Plan for Rural America:

    o Offer gigabit broadband with no data caps
    o Allow a few years for Rural America to get used to having it
    o Impose Shadow Datacaps on the biggest bandwidth users
    o Complain about 'data hogs' and 'lost profits'
    o Impose 'overage fees'
    o Impose data caps for all subscribers
    o Profit!

    --
    Are YOU using the TOOL, or is the TOOL using YOU? Think about it!
  3. Gee, wonder what ISP-employed lobbyist got this in by Anonymous Coward · · Score: 3, Insightful

    Sure, give the already obscenely greedy ISPs more money, surely that will get them to meet their prior commitments!

  4. This could be interesting... by SeaFox · · Score: 4, Interesting

    As long the providers don't get the money until after the project is completed. Have it held in escrow, even.
    If they say they need the money for the build-out costs, I'm sure there are more than a couple banks that would make a loan on a business expansion where the repayment is guaranteed by the federal government.

    1. Re:This could be interesting... by Ungrounded+Lightning · · Score: 2

      As long the providers don't get the money until after the project is completed

      And people are connected.

      And the customers have a contractual commitment from the company to keep them served and cap their PAYMENT rates for at least enough years to amortize the installation investment.

      And they have to PAY IT BACK if they drop service.

      My AT&T DSL at home has been out for over two weeks and it looks to be out for another week before they get around to moving my line to a RT that is still live. That's IN A CITY IN SILICON VALLEY. If they can do that HERE (where I COULD switch to the cable provider) and get away with it, what will they do to subsidized rural customers with NO alternative but maybe satellite (if they "have a view of the southern sky") or dialup?

      --
      Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
    2. Re: This could be interesting... by ZeroWaiteState · · Score: 3, Informative

      As someone who has clients in one of those areas I can tell you: you have to contact your state legislator to get ordinary service orders completed. I'm not even kidding. AT&T only wants to do wireless now. From where I'm sitting, it looks like they are stripping the wireline side bare and are waiting for a regulatory opportunity to spin off the carcus.

  5. I'll start holding my breath. by steak · · Score: 4, Insightful

    They still haven't delivered what they promised when we, the people, gave them several hundred million in 1996.

  6. Better idea by geoskd · · Score: 5, Interesting

    I have a shocking idea! instead of giving all of this free money to the thieves and liars, the FCC should build the infrastructure themselves and rent it out to whomever wants to use it. Everybody wins. The FCC gets its rural broadband, the customers actually get the access, and the various service providers don't have to cough up and pay for any infrastructure they are not going to use. Once the initial investment is paid back, the FCC makes money on the deal.

    Anything else is just another government boondoggle with all of us collectively footing the bill.

    --
    I wish I had a good sig, but all the good ones are copyrighted
    1. Re:Better idea by MrLogic17 · · Score: 2

      Because government run projects ALWAYS finish cheaper & faster than private companies. [/sarcasm]

      The real answer is competition. Outlaw all forms of ISP monopoly agreements, including city and building level. Let tiny municipal ISP's start up and compete against Comcast. Let Google Fiber deploy anywhere they good and well please. Make it legal for anyone to buy a big pipe & resell to their neighborhood.

    2. Re:Better idea by PopeRatzo · · Score: 2

      The federal government gets to own and run something that vital when they show they can maintain things like interstate highway

      You're silly. Just drove the interstate from Connecticut to Houston. It's magnificent.

      I get that you're anti-government, but I can't imagine they'd do much worse by their customers than the big telecoms.

      --
      You are welcome on my lawn.
    3. Re:Better idea by fermion · · Score: 2
      Many rural areas provide good services through cooperatives. Most rural areas have electricty, and the people who provide it might be able to provide broadband. Cooperatives do not subsidize or encourage freeloaders. Everyone in the cooperative pays for shared infrastructure, and individuals pay for the the 'last mile'.

      Government funds can help pay for initial infrastructure and allow the cooperative to build out.

      --
      "She's a scientist and a lesbian. She's not going to let it slide." Orphan Black
    4. Re:Better idea by ScentCone · · Score: 2

      Just drove the interstate from Connecticut to Houston. It's magnificent.

      As a follow up ... I just drove 175 miles on interstate highway and bridges this week, and it was miserable: out of date signs, crumbling pavement, terrible water management, the same bridge repairs under way for three years with virtually no progress, damaged and missing signals at ramps/exchanges, and so on. I know, you also think the VA hospital system, Amtrak, the IRS's operations, and more are "magnificent." Yes, the government can do MUCH worse than telecoms. I deal with, for example, both Verizon and the federal government on a regular basis. I'd much, much rather have Verizon stringing up broadband to my house than relying on the FCC to do so. Have a tree come down on your service in a rural area? Yeah, we'll get a federal agency on that right away. The same executive branch that's willing to let injured veterans die while waiting months for an appointment to see a VA doctor ... they'll be right on getting your damaged fiber back up at the end of that farm road, no problem. Is next September OK?

      --
      Don't disappoint your bird dog. Go to the range.
    5. Re:Better idea by Nethemas+the+Great · · Score: 2

      Fix your state politics then as that's where the over whelming majority of the failure takes place--including your highways. You know that whole "states rights" B.S. that allows corrupt state and local officials to frack everybody over, while the federal government--usually bypassing congress and straight on to the President--takes the fall.

      --
      Two of my imaginary friends reproduced once ... with negative results.
    6. Re:Better idea by PopeRatzo · · Score: 2

      I just drove 175 miles on interstate highway and bridges this week, and it was miserable:

      Then you should have taken the private roads instead.

      Oh, I'm sorry, the private roads don't exist. At a certain scale, government is the best, most efficient and least corrupt option. Telecommunications may be one of those.

      Health care is also one of those things, given the experience of most of the developed world. I'm surprised that you believe that private insurance could do a better job than the VA. That is, if you could even find a private insurer to write policies for such a high-risk community, which you can't because it would be a huge money-loser. Face it: our society is not really enthusiastic about taking care of veterans' health care needs in a first-class way for the rest of their lives. We love our wars, but except for the decades immediately after WWII, we do not love our veterans, at least not the living ones.

      However, in the US, we just adore our war dead, because they don't cost much. This weekend will be a veritable orgy for the war dead.

      --
      You are welcome on my lawn.
  7. Suburbanites w/ 10Mbps to pay for farmer's gigabit by raymorris · · Score: 2

    Alternative headline for the same story:

    City-dwellers with 10 Mbps service by govt-enforced monopolies to buy gigabit for farmers

    Last year, taxpayers paid the ISPs $9 billion for rural broadband, so that people who like owning horses can watch more Netflix movies simultaneously. Another couple billion this year, and $10 billion more planned. (About $82 per tax payer). Meanwhile, those of us paying for it get whatever Comcast or the local government franchise holder decides to give us, because the government has made if effectively illegal for a competitor to offer better service in our area.

    I'm from the government and I'm here to help, they say. How about get the fuck out of the way and allow competition. There has been some of that in some states, and average speeds have gone up considerably in the last year.

  8. Didn't we already do this?` by Holi · · Score: 5, Insightful

    In the 90's we gave the network providers billions to bring broadband to rural areas. They didn't do it then, what makes us think they will follow through this time?

    --
    Sorry, teleporters just kill you and then make a copy. A perfect, soul-less copy.
  9. Don't forget abortions... by Frosty+Piss · · Score: 2

    with that much government involvement you can bet more than a few congresspeople will want to show their pro-family credentials by mandating anti-pornography filtering on any government-funded network.

    And don't forget abortions. There shall be no abortions on government funded Intertubes.

    --
    If you want news from today, you have to come back tomorrow.
    1. Re:Don't forget abortions... by Speck'sBacon · · Score: 2

      The government-funded intertubes should be tied.

  10. Re:Suburbanites w/ 10Mbps to pay for farmer's giga by PPH · · Score: 5, Insightful

    The Rural Electrification Act was a (relative) success. So let's try a similar scheme again. Let rural governments create cooperative ISPs, apply to the FCC for their share of the funding and put in broadband. I have the feeling that the incumbent telecoms are going to get their hands on the money and it's all going to disappear down the same rat-hole that the last subsidy did.

    --
    Have gnu, will travel.
  11. sure, let's DOUBLE DOWN on STUPID! by Thud457 · · Score: 4, Informative

    I hope this time Congress attached some performance requirements so they don't just TAKE the money and do NOTHING like last time.

    --

    the preceding comment is my own and in no way reflects the opinion of the Joint Chiefs of Staff

    1. Re:sure, let's DOUBLE DOWN on STUPID! by Nethemas+the+Great · · Score: 3, Informative

      I'm not sure where you got that statistic from but I can tell you that nearly all of rural America has a median family income half that.

      --
      Two of my imaginary friends reproduced once ... with negative results.
    2. Re:sure, let's DOUBLE DOWN on STUPID! by dgatwood · · Score: 3, Informative

      Even better would be to just kill this subsidy program entirely. Median farm income in America is over $80k, about 30% higher than the overall median. Why should poor people be taxed to subsidize other people that are better off?

      That covers the farm owners, but what about all the other people who work on the farm?

      Besides, you don't seem to comprehend the scale here. Areas defined as "highly rural" have fewer than 7 people per square mile. So at most two or three houses per square mile, and possibly not even one house per square mile. Urban areas have over 1,000 people per square mile. We subsidize services for people who make twice as much money as others because otherwise their Internet connections would cost potentially three orders of magnitude more, and even that's potentially an underestimate. That $200 setup fee suddenly becomes a $20,000 setup fee.

      --

      Check out my sci-fi/humor trilogy at PatriotsBooks.

    3. Re:sure, let's DOUBLE DOWN on STUPID! by HornWumpus · · Score: 2

      They can't even get it together to kill the rural electrification program. Hasn't had a use or need in 50 years, 1.5 billion/year wasted.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
  12. Re:Suburbanites w/ 10Mbps to pay for farmer's giga by hierofalcon · · Score: 2

    Don't know about your circumstances, but I'm happy to subsidize them because I like to eat what they grow and raise. Everybody can talk about competition and how eager companies should be to provide electricity or internet in this day to the rural sticks, but no company is going to do that on its own at a price any farmer or rancher is going to be able to pay. Maybe if they get gigabit to the rural sticks the prices will come down where I live.

  13. Re:It might be coming... by sims+2 · · Score: 2

    That seems rather high for a 10/5 fiber. What part of the country is that? A business 10/10 fiber connection is $55/mo here. Alhough gigabit service is not available as the whole isp only has 2Gbps of backhaul.

    --
    Minimum threshold fixed. Thanks!
  14. The government tried this already by zerofoo · · Score: 3, Informative

    We never learn from our mistakes:

    http://www.pbs.org/cringely/pu...

    Our country and government should not give the telecoms a dime until they do what they say they will to the satisfaction of the auditors and regulators. Promises are worthless.

  15. Re:Anti-government red states by ScentCone · · Score: 2

    Ah, the usual false dichotomy troll. I know, it's just inconceivable to you that there's a distinction between "anti-government" and not wanting a bloated, wasteful, incompetent government. When the legislature and/or executive branches happen to be run by the people you hate so much, and they propose doing something you don't like, are you suddenly "anti-government?" No? I see.

    --
    Don't disappoint your bird dog. Go to the range.
  16. How it will be done. by 140Mandak262Jamuna · · Score: 3, Insightful
    1 First all the private companies will get the money. Allocate it as bonuses and rewards to all the top executives.

    2. Throw a little money into astro turf organization to protest.

    3. Astro turf will denounce it as Big Government, Obamanet, over reach and argue for the program to be axed.

    4. Some law makers will be persuaded by the lobbyists to fake concern and axe the program.

    5. The companies will blame the funding cut to renege on all promises

    Lather, rinse and repeat.

    --
    sed -e 's/Chuck Norris/Rajnikant/g' joke > fact
  17. Competition vs monopoly in the market. by Archfeld · · Score: 4, Informative

    without some form of subsidy, the greedy private carriers will NEVER develop the tech, or expend the cost to wire/beam just a few locals in a small farm town in the middle of nowhere America. I agree we should just require cable/internet services to be open and do away with utility protections. I happen to live in an area that has a couple of cable options, as well as satellite services, and the cost/service benefit is HUGE. When Astound/Wave came to town Comcast/Xfinity cut their cost and upped their data caps within a month to compete because they HAD to.

    http://www.wavebroadband.com/
    http://www.xfinity.com/

    --
    errr....umm...*whooosh* *whoosh* Is this thing on ?
  18. Re:It might be coming... by sims+2 · · Score: 2

    Funny you mention that as I'm only about 40 miles from Lavaca, AR in Sallisaw, OK. I think our biggest limiting factor here is back haul as 2Gbps costs the city 12K/mo.
    The highest speed available here is just 50/50 for $157/mo

    And I just noticed it shows that Lavaca was the first FTTP in Arkansas and sallisaw was the first FTTP in Oklahoma.

    Funny how two states managed to both start their first fiber networks less than 50 miles apart and in roughly the same year.

    --
    Minimum threshold fixed. Thanks!
  19. We did, FDA did the doling out then. by TheHawke · · Score: 2

    One operation based out of Oklahoma City deployed as far south as Corpus Christi. They showed great promise, but oversold their bandwidth and territory, winding up existing from check to check. Then they declared bankruptcy at year 3 when the Dept of Agriculture welshed on their next check, and had to go into bankruptcy. The liquidator's auction for the CDMA licenses looked like sharks in a feeding frenzy; with the telecoms outbidding each other until the licenses wound up selling around 15X-25X their face value.

    --
    First rule of holes; When in one, stop digging.