Hazzard County, Tacoma

Boss Hogg Lives!

Okay, here’s the scenario: somewhere in a town probably deep down in the rural South, the politicians decide unceremoniously to dump part of the city’s utility system. The line given to the townsfolk, is that the utility system is losing money. This issue of losses is hotly contested, but the town fathers are able to stall off an independent audit to determine if the utility is really losing money. The only daily newspaper in town is owned by basically the same group of people that run the town – they’re all good ol’ boys – so it spouts a nearly constant stream of propaganda backing up what the town fathers say.  Feeling secure, the politicians plow right ahead.  There are questions, however.

Why, you ask yourself, would anyone want to buy a utility that’s losing money? So they can take the losses themselves, instead of the city? Obviously, this is altruism’s finest hour!  But then you remember that the person buying the utility is one of the group of good ol’ boys.  Armed with this thought, you have to assume it’s a no-brainer the utility must be making money hand over fist!  Otherwise no one would want to buy it.  The good ol’ boys don’t waste money on unprofitable businesses. It’s just not done.  And cooking the books to make it show a loss is so, so easy.

The move to sell the utility doesn’t really surprise anyone because the town’s politics are dominated by the good ol’ boys, and they often make decisions like this. This is not these politicians’ first rodeo.  

Where might something like this happen?  Right off the top, most people would think of Hazzard County, Georgia, with Commissioner Boss Hogg running the show. It’s a given that everything Boss Hogg does, profits himself or his friends. That’s Just the way he rolls. Everyone accepts this, because that’s just the way business is conducted in that small fictional southern towns.  Or so TV would have us believe.

Continue reading “Hazzard County, Tacoma”

Privatizing Click is not the answer

The whole problem with Click! Network is that their management are idiots. They never have had any idea how to compete in selling broadband access. 

Click’s always controlled the wholesale prices that the ISP’s use to set their prices. They kept the wholesale prices higher than they should have been because they were trying to milk the bandwidth for all they could – trying to wring out every little last penny. And they always followed Comcast’s pricing rather than trying something innovative – like offering discounted service for low income, handicapped and seniors. And they always lagged behind in speeds, making it hard for the ISP’s to be competitive, which has also affected revenues overall.

The issue of finances that has been hotly contested. Because there’s never been an independent audit of Click’s finances, we really don’t have any idea whether it’s making or losing money. But if management had learned their product, and taken the initiative and been more imaginative in their pricing and bandwidth offerings, it certainly would’ve helped.

Examples of Click management’s stupidity are manifold. One good example is when Comcast upgraded its network to DOCSIS 3.0, it took Click three years before they caught up. In the mean time, the Click ISP’s were stuck selling a vastly inferior product at higher prices. Do you suppose that ever affected revenues? Looking back right to the start, I can document probably a half a dozen examples of where this exact same scenario played out over and over and over. But Click management never learned from their mistakes.

The attitude of Click’s management has always been that once they offered some particular speed package – say 12 MB/s – then that’s all that people would ever want. That’s an updated version of AOL’s supreme arrogance, when their CEO famously said, “56K is all the people will ever need.” We all know what happened to AOL.

Click management never had a clue of what was coming down the pike in terms of bandwidth and applications. And so they were always way late to the party with upgrades.  Time and again, they demonstrated a profound ignorance of the market they existed in.

Their cardinal sin: they did not know their product. Not at all.

Continue reading “Privatizing Click is not the answer”

Click! Networks should get out of the cable TV business

There’s been a discussion lately about the viability of Click.  It seems the Cable TV business is losing money – in part through the rising costs of programming content, and partially because of the way the city cooks their books, writing off capital construction costs of the network.

The wholesale internet business – where Click sells wholesale bandwidth to the three local ISP’s (Rainier Connect, Advanced Stream and Net-Venture) is making a whopping 60% profit!

Click’s idea is that the internet sales should subsidize the cable TV operation.   To me, that’s stupid.

Continue reading “Click! Networks should get out of the cable TV business”

Another Love Letter to Marguerite Reardon…

C-Net’s Maggie Reardon wrote another PR-release, fluff piece for Comcast on the issue of the Comcast-Netflix peering/extortion issue.

In this supposed, “learned” explanatory piece, Ms. Reardon details all the thousand reasons Comcast embodies all that is goodness and right and how NetFlix is a horrible bandwidth hog, free-lunch expectant monster!  Yeah, right. 

Here’s the piece:  C-Net article: Comcast vs. NetFlix

It’s obvious who’s paying Maggie’s salary.  So I called her on it.


 

Yes Maggie, it’s obvious you are indeed a shill for the Telco’s.

A few years back, Ed Whitacre, who at the time was the CEO of AT&T, came up with the bright idea of creating a new revenue stream for his company.

He wanted to charge Google and others like them for connecting to his end users.  “They’re not gonna ride our pipes for free” was his battle cry.  There was a great deal of negative publicity and a huge outcry.  And so Whitacre’s plan went down in flames.

But it wasn’t forgotten. Continue reading “Another Love Letter to Marguerite Reardon…”

FCC’s Net Neutrality Rules Would Break the Internet

C-Net’s Marguerite Reardon’s at it again, with a new piece on the goodness of the FCC’s proposed rules on “Open Internet.”   http://www.cnet.com/news/fccs-position-on-net-neutrality-hasnt-changed/

She spends the whole article mouthing soothing platitudes from the talking points Comcast prepared for her.

I can’t believe anyone is so stupid as to believe these rules won’t terribly harm consumers.  So I can only guess that Maggie’s on Comcast’s payroll.  I felt strongly enough about it to leave the comment below on the C-Net website:

++++++++

This article, coming on the tails of Ms. Reardon’s magnificent piece rationalizing the unbearable goodness of the TWC – Comcast merger has me utterly convinced that Ms. Reardon’s 100% on Comcast’s payroll.

She regurgitates Comcast’s and Wheeler’s talking points, 1,2, 3 right down the line, without any measure of objectivity.

But of course, Ms. Reardon.  The FCC rules will change nothing.  We can rest easy. Continue reading “FCC’s Net Neutrality Rules Would Break the Internet”

Comcast – Time Warner Cable Merger Is Bad News For Consumers

 

Marguerite Reardon of C-Net wrote an opinion piece suggesting the Comcast-TWC merger would be a good thing.

http://news.cnet.com/8301-1023_3-57620361-93/why-a-comcast-merger-could-be-good-for-twc-customers/

I wrote the following response:

 

Maggie Reardon has obviously sold her soul to Comcast.   Her opinion piece is an embarrassment. It looks like most of it was copied verbatim from a Comcast press release.

I’ve never had TWC, but I have had Comcast and they have what can only be termed as horrible customer service. If TWC is worse, so be it, but to consider going to Comcast as an upgrade is simply asinine.

As far as Comcast being an innovator: if I had to name one single entity that’s holding back progress it’d be Comcast. The ostensible public face of Comcast is as phony as a three dollar bill. The truth is they are fighting progress tooth and nail, pouring truly obscene amounts of money into lobbying and PR, all bent to protect their failing business model – they are after all, predominantly a cable TV business. And the Internet is changing the world, and is in the middle of making cable TV obsolete.

Just like the automobile changed the world, making horses and livery stables obsolete, the Internet is changing the way the world gets its content.  Continue reading “Comcast – Time Warner Cable Merger Is Bad News For Consumers”

Click! Network Moves to Put Independant ISP’s Out of Business

Click NetworksAfter years of operating in blissful ignorance of the markets they allegedly compete in, Click! has come to the conclusion that they’re in trouble and have to do something, and do it quick!

The fact that they haven’t upgraded their system to DOCSIS 3.0 – like Comcast did three years ago isn’t to blame. The fact that people are ditching traditional cable TV in droves – “cutting the cord” – in favor of streaming media over the internet (like Netflix and Hulu) isn’t to blame.

Nope.

According to a presentation at the Tacoma Utilities Board meeting last week, and based on a consultant’s study that is over two years old, Click! Networks has finally come to the startling conclusion that their cable TV customer base has stagnated and revenues are down — mainly due to Comcast offering bundled services. But wait, there’s more – they have a remedy:

“Click needs to offer retail ISP services directly to customers, which means competing side by side with the three existing ISP’s. The wholesale model where customers have to buy data somewhere other than Click is the primary reason for the total stagnation of sales that has occurred since Comcast added the bundle…”

What is the connection here? “The wholesale model where customers have to buy data somewhere other than Click is the primary reason for the total stagnation of sales that has occurred since Comcast added the bundle…”

I challenge Click to prove that.

The whole thing is asinine. The wholesale internet-service business model doesn’t have anything at all to do with stagnation of TV sales. Has anyone at Click! even heard of Netflix? Do they read the news? Have they heard of TV antennas? Continue reading “Click! Network Moves to Put Independant ISP’s Out of Business”

Click! Network Responds

D'oh!
And yet another open letter to Click! Network management:

One of your people called me a few days ago to talk about DOCSIS 3.0

I’m sorry, I don’t recall his name.

He was under the strong impression Comcast just rolled out DOCSIS 3.0 here in Tacoma in December 2009.

WRONG.

As I told the guy, Comcast rolled out DOCSIS 3.0 here in the Seattle Tacoma area slightly over a year ago – mid-December 2008. Check out this thread on dslreports.com and please note the posts’ date: DOCSIS 3.0 available in Tacoma

Yes, that’s right: Comcast rolled out DOCSIS 3.0 in Tacoma in mid-December, 2008. The first post in the thread is dated 12-19-2008.

And you guys thought the roll-out had just happened? Seriously? And according to what the guy told me, you’re just now getting ready to ask the city council for money to build-out a DOCSIS 3.0 system?

This really disturbs me.

How on earth could you people have missed a major market event such as that?

The guy I talked to told me that the vast majority of your customers are at the Res 1 level, so that was another reason Click saw no real incentive to upgrade. Well duh! You ever suppose the reason all your customers are at Res 1 is because the other products are so inferior that anyone interested in real bandwidth and real value will go to Comcast?

Continue reading “Click! Network Responds”

Is Click! Network Trying To Commit Suicide? Looks That way…

D'oh!Comcast started offering DOCSIS 3.0 connections here in the Seattle-Tacoma area over a year ago. Where is DOCSIS 3.0 for Click customers?

An open letter to Click! Network Management

Sirs:

Comcast started offering DOCSIS 3.0 connections here in the Seattle-Tacoma area over a year ago. At the time Comcast premiered it’s product here, I called Click! customer service and was assured you were “working” on our DOCSIS 3.0 upgrade and that it would happen sometime relatively soon.

Well it’s a year later, and we still have no upgrade. Comcast customers get twice (or more) the bandwidth we do.

Put this another way – say both Click! and Comcast were selling electricity. Click! sells 10 kWh for $62, but Comcast sells 30 kWh for the same price. That’s what we have with internet bandwidth – Comcast gives their customers double or triple the bandwidth for the same exact price.

And this is a city owned utility! Why should Tacoma residents – who own Click! – pay more for their internet through their own utility? If anything, city utility prices should be less expensive!

Continue reading “Is Click! Network Trying To Commit Suicide? Looks That way…”

Metered Bandwidth Will Kill Movie Downloads and Stifle Other New Technology

All your bases are belong to us!!!
I was looking at file sizes of Blu-Ray movies today. The average size of 320 current titles was 27 GB – for just the movie alone. You add in all the extras and what not that usually come with a DVD (deleted scenes, extra content, etc) and the size jumps up to an average of 35 GB per movie.

Looking at Comcast’s proposed threshold of 250 GB before they bill you extra, that translates into viewing just nine Blu-Ray movies before you hit your limit – not to say any other internet activities. Just watch nine movies and you’ve blown your cap for the month.

Present Day

Right now, people might watch 2-3 movies a week – mostly rented and viewed on a TV, not a computer – along with maybe some HD sports and other HD content as well (concerts, news, TV shows or whatever). You can stream video content to your PC (from Amazon or iTunes for example) but it’s all small format and not portable to your HDTV.

I don’t know about you, but I hate watching movies on my computer – I have a small 42” HDTV and a good 7.1 surround system. If I want to watch a movie, that’s what I use. Screw the PC.

Other current uses of bandwidth might also include streaming a few hours of music, or buying some songs at iTunes or Amazon.

Continue reading “Metered Bandwidth Will Kill Movie Downloads and Stifle Other New Technology”