Some Internet Providers only Giving 80% of Advertised Speed: [4th Aug 2011]

The FCC has released figures which show that some Internet service providers are delivering speeds which are only 80% of those they advertise. During peak times the result can be even worse than this. The FCC hired research company SamKows who asked 9,000 volunteers to to monitor the daily performance of their networks. This is the first report based on that data. It was found that most ISP deliver 80% for the speeds they advertise, but some find it particularly hard during peak times. It was found that careful advertising helped ISPs to reached targets as they did not over estimate what they could achieve. Cablevision was found the be one of the worst providers with such 50% of their download speeds actually meeting expectations. Frontier managed just 67% while those companies which have been undertaking recent investment in their networks managed to exceed their advertised speeds. Verizon gave 104% of their advertised speeds for heir FiOS service.


A study by Yankee Group has indicated that the merger between AT&T and T-Mobile is likely to cause higher prices and less choice, despite claims to the contrary by AT&T. However the deal could improve AT&T coverage and their spectrum position. Their report goes on to suggest that the concentration of the provider which already serves one third of the wireless subscribers in the US will lead to little incentive for competitive prices from AT&T. It is also expected that this will apply to business customers. Yankee also points out that AT&T may simply sit on the extra spectrum they gain and they may not actually use it. AT&T have claimed that they will build their network as quickly as they can.


Verizon employees have voted to approve a strike as they are concerned that there seems to be little progress on a new contract for one which expires at the end of this week. Many staff are having trouble finding common ground when it comes to health benefits. The company wants the workers to contribute upfront for their healthcare as non-union workers already do. They say that it is necessary to keep the company competitive. However it has been pointed out that the company had revenues of more than $27 billion last quarter. It has also been leaked that Verizon management have put into place a strategy for replacing striking workers should the action take place. They have planned to move staff from Texas and Florida to keep stores running.


The FCC has ruled that cable TV companies cannot drop a channel if they cannot agree terms during contract renewal discussions. This is often part of the leverage used by cable companies to get the deals they want. The FCC has made the move to prevent customers losing out while the arguments take place. It is also hoped it will speed up these negotiations. This rule is in addition to a previous policy which said that independent cable TV channels would continue to be distributed during renewal discussions.


AT&T have dropped their ESPN 3D service claiming that the channel was too expensive and that they had low demand for it. However it has been pointed out that companies like Cablevision and DirecTV offer the channel for free. AT&T go on to say that for those customers who subscribe to the 3D service, the channel will be removed and any charges already made will be credited. Overall 3DTV seems to be very slow to capture people's imaginations, perhaps because of the high prices and the need to wear glasses.