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Report: Most Americans have no real choice in internet providers

314 points| rmason | 5 years ago |ilsr.org | reply

173 comments

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[+] crazygringo|5 years ago|reply
Seriously. I don't understand why there isn't a movement to regulate ISP's like utilities at this point. Why aren't mayors and governors running on this as a major plank?

ISP investments, profits and pricing would all get regulated by the municipality. Performance is monitored and guaranteed.

I've lived in many, many apartments in NYC and each building has only ever had one choice -- Spectrum (was Time Warner) or Optimum. And it's always the same -- it's $24.99-39.99 at first, then after a year it's jacked up to $49.99-54.99, then another year up to $69.99.

It used to be you'd call to threaten to cancel and they'd re-lower it. But they haven't agreed to do that for over 3 years now -- they'll just let you cancel. They know you don't have a choice.

ISP's are so obviously by now a utility like water, gas and electric. Why aren't we treating them that way?

[+] pwinnski|5 years ago|reply
Because very large companies with a lot of money are willing to spend vast fortunes to ensure we don't. If it costs them $200 million in lobbying to ensure that they hang onto $1 billion a year in revenue, that's well worth it to them, while the rest of us are too busy paying our too-high monthly ISP bills to scrape together $200 million to counter their lobbying.

A regular diet of TechDirt[0] on the subject, going back many years, tells quite a story.

[0] https://www.techdirt.com/blog/?tag=muni+broadband

[+] cameronbrown|5 years ago|reply
> Seriously. I don't understand why there isn't a movement to regulate ISP's like utilities at this point. Why aren't mayors and governors running on this as a major plank?

Who do you think gave them these monopolies in the first place?

[+] dhosek|5 years ago|reply
The ISPs have bought themselves some democracy. They've managed to get numerous state laws passed to prevent local government from doing any of this.
[+] zajio1am|5 years ago|reply
IMHO more important question is why ISP market in US is so broken, while it works in other places.

Instead of 'bad' regulation like heavy handed regulations of 'investments, profits and pricing', there should be 'good' regulation to improve competition without direct market intervention.

Running small ISP is extremely simple, i started one (non-profit) while studying a university. Why this does not happen in US?

[+] hvaoc|5 years ago|reply
US Internet system is rigged to benefit the providers. This exactly the reason after every year we switch back the internet connection between me and my spouse, to keep the internet cost low.

For most part US doesn't have functional government to manage these things properly.

[+] footlose_3815|5 years ago|reply
>Seriously. I don't understand why there isn't a movement to regulate ISP's like utilities at this point. Why aren't mayors and governors running on this as a major plank?

There was one, it was called Net Neutrality...

How old are users on here?

[+] ghaff|5 years ago|reply
Ma Bell as a regulated monopoly for long distance gave us pretty great service. It wasn't cheap.
[+] roenxi|5 years ago|reply
Nobody on HN can know what "regulate ISP's like utilities" means. The utilities aren't regulated in a uniform way and it isn't obvious what the term means when applied to internet providers.

The devil is really in the detail for that sort of term. Movements are probably held back by the cynical (and realistic) observation that "change the regulation" was the strategy that was tried in healthcare and made the situation worse. Somehow.

[+] harikb|5 years ago|reply
One question on the $70 price tag. I get that it is high compared to, say, Europe or Asia, but not by much. Comcast/Xfinity gives 1 or 1.5 TB per month for that money.

Now let us compare to business connection. One would think a business has “options” - they are someone who can’t be toyed with. Even their rates are not cheaper! I am talking about price/mbps or price/TB . I don’t think you can get a business connection for less than $100 - yes, you get static IP. We (at home) expect the same “reliability” as a business.

We can cut it down to $50, may be, if we did muni internet. But it won’t become $20

[+] zzzeek|5 years ago|reply
optimum is now 90 BUCKS A MONTH. for basic internet, no TV, no phone. they are owned by some corporate entity called "Altice" which basically came in and ruined whatever slightly positive features the website had, like an outage map.
[+] kanox|5 years ago|reply
Because it's a bad idea to replace a private monopoly with a regulated state monopoly.

Regulation should instead focus on ensuring that consumers have multiple choices, as is the case in other countries.

[+] tomc1985|5 years ago|reply
No company seems to want to be a utility. They all feel the need to compete on inconsequential, value-added crap and bullshit services when all we want from them is the pipe.
[+] BatmanAoD|5 years ago|reply
A few municipalities have decided to offer fiber internet through the city, but I don't know how common that is. These projects take several years, though.
[+] p1necone|5 years ago|reply
Because half the voting base hears the word regulate and starts screaming communism. Just because it would benefit everyone doesn't mean there isn't a huge group of people who would rather cut off their nose to spite their face.
[+] irontinkerer|5 years ago|reply
Perhaps that now we are work-from-home for so long, there’s a new compelling legal argument for regulating them a utility?
[+] gnopgnip|5 years ago|reply
Utilities are expensive to operate and it is a tough sell to do something that will lose money for 5+ years.
[+] Mandatum|5 years ago|reply
At least you have mesh options in NYC which are arguably cheaper, faster and more reliable.
[+] heavyset_go|5 years ago|reply
> Seriously. I don't understand why there isn't a movement to regulate ISP's like utilities at this point. Why aren't mayors and governors running on this as a major plank?

Politically untenable in this climate. There's a certain subset of the population who will claim that any type of regulation they disagree with is communism, and those currently in power have no problem boosting those voices to prevent ISPs from being regulated.

[+] mushufasa|5 years ago|reply
if you're in NYC, you do have other options. NYC mesh wifi is volunteer-based free isp, with suggested $20 monthly donation. https://www.nycmesh.net.
[+] zepto|5 years ago|reply
It’s not obvious that treating internet like electricity and gas would be any kind of improvement in California.
[+] Shivetya|5 years ago|reply
Do you want them metered like all other utilities? Why do people assume it will all be fast and unlimited? It may have claims that it will be but suddenly there will be service issues and the only way to be fair is to meter. You get people who will abuse any service and with them you get calls to make it so they cannot.

Why aren't we treating that way? Because they are still so new relative to other utilities and for the most part a large number of people don't find the internet as useful as people in our fields do. You would be damn well surprised how many families there are where only the kids see value in the net.

[+] candyman|5 years ago|reply
I was pleased when we lived in Boston where our building and many others was able to put microwave-based services on the roof. It was internet-only but very fast and inexpensive - just what we needed. Now we are in Louisville and back to the only two mediocre and more expensive choices - ATT and Spectrum. And if you go out into the country many homes are stuck with satellite internet service from Hughes which is damn near unusable.
[+] kibwen|5 years ago|reply
As a transplant to Boston I was thrilled that for the first time in my life I actually had a choice of internet provider; I went with "not Comcast", aka RCN, because they were the one who didn't charge an absurd fee to let me use my own router, and the service has been extremely reliable and inexpensive. Apparently Verizon has just begun fiber service as well to my area, so with a whopping three providers to choose from I am perhaps the luckiest person in America.

(The microwave service you mention, Starry, sadly isn't in my area yet, but HN will be delighted to hear that their microwave relays use Rust internally in embedded context.)

[+] yakz|5 years ago|reply
There are alternatives in Louisville, like IgLou (on AT&T's network afaik). I'm happy with AT&T fiber 1gb service, although it's not available everywhere in the city and is expensive.
[+] derblitzmann|5 years ago|reply
Yeah, I'm out in the country with Hughesnet, and it works fine provided you haven't hit the data cap. But streaming 720p or higher is going to be pausing rather consistently.
[+] dheera|5 years ago|reply
My property manager in Boston wasn't willing to allow that :-/
[+] umvi|5 years ago|reply
Online games on HughesNet are unplayable. Called and complained that ~500ms RTT is unacceptable but they made up some excuse as to why it couldn't be faster, some mumbo jumbo about the speed of light
[+] djaque|5 years ago|reply
This is what frustrated me the most with some of my friends "free market" arguments when net neutrality was in the news. I am also a believer in the invisible hand, but it doesn't work when I can literally only choose from one provider.
[+] ExtremisAndy|5 years ago|reply
It’s really depressing in rural places. I had to teach online all summer with DSL 6mbps down/ 0.3mbps up. Forget uploading any video. My students never saw my face. Thankfully, the videoconferencing software I was using managed to allow me to share my PowerPoint and voice reliably enough. Otherwise, I don’t know what I would have done.
[+] gz5|5 years ago|reply
Regulation does't always spur open competition and often has unintended consequences.

Separate the last mile pipe provider/operator (infrastructure) from the service providers. All service providers compete across that pipe. Traditional ISPs, niche providers, etc. I may choose 5 of them as a consumer.

It does necessitate an open, multi-tenant architecture. Let's invest there rather than investing in trying to implement a new regulatory scheme.

[+] noodlesUK|5 years ago|reply
Local loop unbundling, as it’s called in the U.K. has definitely driven prices down for DSL, but it means there’s very little in terms of actual consumer choice. It’s basically one ISP (virgin excluded cause that’s docsis and a totally different network) for everyone, with different people you can buy service from. If anything actually goes wrong with the network, open reach fixes it, but there’s no way for a company to differentiate on performance, only price.
[+] vondur|5 years ago|reply
Heck, many Americans in metro areas have only one choice for internet providers. I've helped people here in SoCal whose only choice has been 5-10MB DSL service, and they were getting charged like $70/month for it.
[+] mixmastamyk|5 years ago|reply
Helped how? Getting charged that for 100mb in LA, and feel it is too high.
[+] vinay427|5 years ago|reply
Was this in the outer areas (San Bernardino, Ventura, Imperial, etc.)?
[+] chrsstrm|5 years ago|reply
In a rural area where the local telco was granted a legal monopoly, their "high speed" comes in a 5/0.5mbps on a good day. The area is now blanketed in T-Mobile 5G coverage, but questions asking T-Mobile about a 5G hotspot with a wired LAN port have gone unanswered. I'd love to use a 5G hotspot as the house's modem, but WiFi-only just won't work. Do any 5G devices with a SIM slot and a wired LAN port exist?
[+] jtxx|5 years ago|reply
in NYC, I’ve only ever had the option for one cable provider at any given location, either Spectrum / Time Warner or Optimum, maybe RCN. but never more than one to pick from, unless you’re in a fios building then I think that’s an option. and there’s usually DSL but that’s not a real competitor.
[+] frogpelt|5 years ago|reply
I have a choice:

$80/mo for Local ISP DSL - 10 Mbps down, <1 up

OR

$100/mo for LTE hot spot for $100+/mo. 25 MBps down, 5Mbps up with data caps and throttling.

The local ISP says they're installing fiber but they're only installing it where the federal government subsidizes or completely funds it.

[+] war1025|5 years ago|reply
This seems fairly unsurprising to me.

Internet is a utility. Most people also don't have a choice in who they get electric, water, gas, etc. from.

It's unfortunate that internet service quality is so varied from location to location, but utilities tend to form natural monopolies.

[+] JohnTHaller|5 years ago|reply
Living in NYC, I have one high-speed internet option (Spectrum, formerly Time Warner) and one not high-speed internet option (Verizon DSL with "up to" 3.1 - 7 Mbps). That's it.
[+] fireattack|5 years ago|reply
Questions for the people from areas that do have: do the different providers have separate infrastructures and facilities (optical fiber cables, switches, etc.)?
[+] luxuryballs|5 years ago|reply
I may be in the minority but my Internet has only gotten better, faster, and cheaper over the years, so I am hesitant to advocate for any major change.

But it should be noted that the municipalities are typically who are granting a local monopoly over the existing lines to the ISP and preventing someone else from coming in and laying their own new cables down.

[+] sixdimensional|5 years ago|reply
Only Cox at the most southern point of SoCal where I live. I have only one choice, other than satellite.

We can get 940Mbps down/35Mbps up w/ 1.25TB cap and mid level cable TV from Cox for.. wait for it $270/month. O_o

Currently I get 150Mbps down/5Mbps up + mid level cable TV... $130/month. It’s fast enough for work, but feels so expensive.

[+] qetuo|5 years ago|reply
I live in an apartment in Passaic County, NJ. My ISP, Optimum, has a monopoly on this group of apartments.

They take advantage of this to charge $75/month for plain broadband Internet service, which is about 50% more than the average Internet service (including Verizon FIOS) costs in the nearby area.

Just sayin'.

[+] connon|5 years ago|reply
Thank you for sharing. This is exactly why Ready (YC S20) makes tools that help America's thousands of Local Internet Service Providers compete with the copper cartel. https://ready.net
[+] exabrial|5 years ago|reply
I have 4, which is unusual. To some the problem, more local competition is needed. The problem is curbing the anti-competitive prentices that prop up local monopolies. States don't seem to care about consumer choice.