The SunBreak
posted 10/14/10 04:07 PM | updated 10/14/10 04:07 PM
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Why Comcast Needs Competition...Badly

By Michael van Baker
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When internet service goes down, who should know about it first? In Seattle, it's not internet provider Comcast. Their customers announce the outages.

This morning, The SunBreak HQ, like many offices around Seattle, was abuzz with complaints about our Business-Class High-Speed Internet from Comcast. Pages were stalling, IM clients weren't loading, everything was slowed down to molasses speed. After performing the usual rites and incantations (unplugging the modem and router, restarting the laptops), nothing had improved.

I had limited connectivity, so I checked on Comcast's status: all green! But it did say, "Please sign in to see local Network Health messages," so I tried that. Still all green. It was time to try online support. 15 people were in the queue ahead of me, so it took 5-10 minutes for my customer service bot to ask me how my day was. Slow internet service? Had I tried unplugging everything? Oh. I had, eh? Well, perhaps I could provide my name and account number. Now if I would just wait a few minutes while they pulled up my account...

While this was happening, I was watching my Twitter stream to see if anyone else was having issues, and TechFlash tweeted "Comcast outage in parts of Seattle." Never mind, I told the bot, the outage is on your end, and signed out. Meanwhile, ComcastWA was tweeting to TechFlash's John Cook that they were "checking to see what's going on." This was about an hour into my experience, and it was the first tweet from ComcastWA on the subject.

By 10:30 a.m. the snafu was resolved, and someone from @comcastcares sent me a tweet to let me know. (Which, you know, thanks, but I can tell when the internet is working.) What's not explained is why Comcast's status maps were all green throughout the outage, or why support staff were telling people to try unplugging their modems and routers first.

You may think to yourself, Hey, come on, it's 90 minutes out of your day. But what I think about is how much time cumulatively was wasted in Seattle this morning, much of it simply because people would not have been sure where the problem was. An early, all-hands-on-deck announcement from Comcast would have been a big help. It seems slightly insane that a company that provides internet service isn't very good at using the internet.

But what can be done? There is no more-agile competitor waiting in the wings, because the Seattle City Council signs ten-year franchise agreements with Comcast. Ten years! It seems like so much could happen in the market in ten years. That's long enough for a provider to go out of business.

So, do we get our money's worth? Do you know what the city lobbied aggressively for when extending the agreement in 2006? A budget increase for the community TV channel SCAN. Four years later, SCAN is being largely defunded. Here an ironic quote from then-Mayor Nickels seems apropos: "This franchise will serve us well for the next 10 years." (Not you, SCAN!)

The city now wants to use the community TV money to fund their email system. That's not...great. Why? Because Comcast can read. And when they learn that you're funding the city's basic IT systems via their franchise fees, it gives them what's called "leverage" at the bargaining table. Plus, attaching themselves limpet-like to a revenue stream that doesn't look like a tax gives the city less incentive than ever to open up cable services to competition. After all, the only losers here are the people of Seattle, and they don't know that's the city's hand in 4.2 percent of their pocket.

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Tags: comcast, outage, techflash, city council, franchise, cable, internet
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Comcast earned their "Worst Company Award"
through hard, hard work! It's not easy to be that bad.
Comment by Constance Lambson
1 month ago
( +1 votes)
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You're not the only one
Here on the East Coast, we are having the same issues. Comcast is working on a boost again, and I gather their updating systems across the country. Give them a shout you'll see
Comment by MishMash
1 month ago
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Comcast in NJ
I just went through the exact same set of circumstances in Toms River NJ . The service was down for 1 1/2 hours. I was on hold for 20 minutes trying to notify them by phone and online there were 42 people ahead of me trying to chat with customer service. When I finally got to speak with some one I was told there had been no problems and that the line is always that busy.
Comment by George Bartley
1 month ago
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franchise fees
Michael, good article. One correction though: Comcast has no say on how the City can use its franchise fees. Comcast pays those fees to the city as rent for use of the right of way. The city is free to use those funds as it sees fit.
Another point, the city is actively pursing competition to Comcast.
Comment by guango
1 month ago
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RE: franchise fees
Thanks, guango. I didn't mean to give the impression that Comcast had formal influence over how the city spent the revenue. I just wanted to point out that once the city is always going to need money from somewhere to pay for email services, and having found a revenue stream in Comcast, if the city changes the arrangement, they'll have to deal with a "new" cost they have to allocate money for. The tendency would be to avoid the hassle if possible. I got the impression from Mayor McGinn's campaign that he'd be interested in a different model of broadband provision, so knock on wood.
Comment by Michael van Baker
1 month ago
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RE: franchise fees
Hi Guango --

Can you provide any details/facts/evidence about the supposed "competition to Comcast" you mention? I have Qwest DSL but have seen the Quality of Service decline dramatically in the past two years.

Besides Comcast, the only alternative seems to be Clear, but after hearing horror story after horror story from friends/neighbors/co-workers, I am loathe to go there.
Comment by Paul
1 month ago
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Competition to Comcast
The problem with trying to find a private sector competitor to Comcast is that Comcast has all the advantages - as do incumbents generally. The economics do not work out for private sector competition, which is why we have so little of it under current policies.

This is why the City has been considering building a full fiber-optic network to everyone. I have been covering the story at muninetworks.org but you can see the Seattle-only coverage here: http://www.muninetworks.org/tags-162

The fastest and most affordable broadband networks in the country are not in SF and you know they aren't in Seattle despite being a tech hub. They are actually in smaller areas where the community built it themselves and use it for economic development rather than profits for shareholders - check out Chattanooga, TN; Lafayette, LA; and Monticello, MN.
Comment by Christopher Mitchell
1 month ago
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