Posts from Internet service provider

The ConnectNYC Fiber Challenge

Possibly the biggest local policy issue in NYC for tech companies is the lack of good broadband infrastructure in the city. We could get into a debate about broadband policy at the local and national level, but this post isn't going to be about that. This post is about something City Hall is doing about the broadband issue.

In the spirit of "race to the top" and other contest based efforts to attack stubborn problems, NYC has launched the ConnectNYC Fiber Challenge in partnership with Time Warner Cable and Optimum Online (Cablevision) to provide fiber build out to businesses.

Here's how it works. You sign up at ConnectNYC, you get and sumbit a letter from your landlord saying they will allow fiber installation in your building, and then you describe how high speed broadband will positively impact your business.

The judges will select the winners and NYC EDC, Time Warner, and Optimum will invest $12mm over two years, with $7mm being invested in year one, into fiber buildouts for the winners. It is estimated that each installation will have a value of $50,000 of investment by Time Warner and Optimum.

In addition to getting a lot of local businesses high speed broadband, this contest will also give an indication to the city and local ISPs of where the most important neighborhoods are for broadband buildout.

We spend a lot of time with our portfolio companies dealing with infrastructure issues around real estate and broadband and I can tell you that this is big problem in NYC. Companies that want to move to low cost neighborhoods with interesting buildings like Red Hook, Gowanus, Vinegar Hill, the Greenpoint waterfront, Long Island City, and other similar places simply cannot do that due to the lack of good broadband. If the city wants to see these neighborhoods emerge commercially, they will need to deal wtih the broadband problem. ConnectNYC is a nice way to get going on the problem. If you are struggling to get a fiber installation in your building, give ConnectNYC a try.

#NYC#Web/Tech

Freedom Of Speech

I've censored the following, in protest of a bill that gives any corporation and the US government the power to censor the internet–a bill that could pass THIS WEEK. To see the uncensored text, and to stop internet censorship, visit: http://americancensorship.org/posts/10183/uncensor

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Uncensor This

#Politics

In Search Of Open Internet Access

Our regular programming, MBA Mondays, is being interrupted this week for a public service announcement.

The net neutrality debate is front and center again. FCC Chairman Julius Genachowski has announced that he will ask the FCC to adopt rules to protect the open Internet at its open meeting on December 21st. We have not seen these rules. Apparently nobody has outside the FCC. But we have been briefed on them. And we think that with one small tweak they will work well. But without that small tweak, they are problematic. My partner Brad has posted our firm's thoughts on the USV blog.

Back in the 80s and 90s, you could start, build, and invest in cable based services. But in order to get your new company distribution on the cable system, you'd have to go to the cable MSOs and give them free equity in your company for distribution. This mafia style shakedown has not existed on the Internet thank god. And the result is literally millions of web services and trillions of dollars of shareholder value.

That's what this debate is all about. The advent of broadband internet access has resulted in a duopoly in most markets. And the companies that provide you broadband internet access want the ability to "manage their networks." We think it is critically important to set some rules on how they can manage their networks to make sure we don't recreate the cable monopoly on the Internet.

We'd love to have an open and unregulated Internet access market. That will take a lot more competition in the last mile than we have now. We need policies that allow the spectrum and fiber to the home to become available and the capital to get invested in making that happen. Until that happens, we need some rules to keep everyone honest in the Internet acccess market.

The FCC's proposed rules prohibit unreasonable discrimination but don't define what that is. We think they need to go that extra mile so that startups don't end up in expensive lawsuits with monoplies with huge bank accounts.

And we are proposing that the FCC adopts the following language:

A non-discrimination rule that bans all application-specific discrimination (i.e. discrimination based on applications or classes of applications), but allows application-agnostic discrimination.

The logic and reasons behind this approach are laid out in our blog post on the USV blog. If you are interested in this debate, and we think you should be, please go read it.



#VC & Technology#Web/Tech