I'm on a tour with my new book Enshittification: catch me next in Cambridge, MA; Washington, DC and Brooklyn! Full schedule here.
Holy shit I love my internet service provider said no one ever!
Except, some people do love their ISPs. Across American more than 400 community-owned fiber networks, serving more than 700 communities, bring joy and satisfaction to their customers:
Many of these are in blood-red states, the kind of places where it's impossible to find a readable copy of Atlas Shrugged because every page of every copy is stuck together. Nevertheless, these publicly owned networks are wildly popular with their subscribers. What's more, there'd be a ton more of them but for the brutal ministration of ALEC, the far-right, dark money policy shop that convinced multiple state governments to ban community broadband, even in places where there was no commercial broadband service:
One of the great predictors of whether your town will get fast, affordable, future-proof fiber is its history. Many of today's municipal broadband co-ops are descended from rural telephone co-ops, and those telephone co-ops were birthed by the New Deal's rural electrification co-ops. This is the incredibly long shadow that good public spending casts – a century of successful provision of amenities that substantially improve the quality of life of whole regions.
Take Jackson and Owlsley Counties, rural Kentucky counties in Appalachia, some of America's poorest places. Starting in 2009, the local telephone company, the Peoples Rural Telephone Cooperative, started pulling fiber to every home in both counties. To get that fiber over rugged mountain passes, they pulled it on the back of a mule named "Ole Bub." Soon, every subscriber had access to symmetrical fiber broadband at speeds of up to 10gb/s, and the region found itself at the center of an economic revival:
The Peoples Rural Telephone Cooperative was founded in 1953, as an extension of the town's electrification co-op, itself founded in the 1930s after the passage of the Rural Electrification Act of 1936 (the REA was amended in 1949, allowing electrification co-ops to secure low-cost loans for telephone rollouts).
You don't need to live in rural Appalachia to reap the benefit of publicly backed broadband co-ops. In Minnesota's Beltrami County (pop 46,288; density 18.6 people/square mile, median income $33,392/household), the local co-op Paul Bunyan Communications offers symmetrical fiber at speeds up to 10gb/s. But that's just table-stakes: Paul Bunyan doesn't just offer reasonably priced, reliable, screamingly fast broadband – it also pays its members whenever too much cash builds up in its bank account. Paul Bunyan just paid out $3.6 million in refunds to its subscribers:
The payouts are pro-rated based on how much you spend on broadband. Customers who were due $150 or less got a credit on their next bill, while customers owed more than $150 got a check in the mail.
Nice, huh? It gets nicer: in 2018, Paul Bunyan paid back its subscribers $2.2 million; in 2022, they paid back $6.3 million, and last year they paid back $3 million. Paul Bunyan employes 160 people in the county, at fair wages, with good benefits. Every dollar Paul Bunyan makes literally stays in the community.
99% of the county has access to fiber from the co-op. Local business growth has outperformed statewide performance. A local aerospace company owner said that the co-op fiber made the difference between running a business with $300,000 in annual revenue and a business making $3,000,000 per year.
All of this is even cooler when you learn about the kind of internet service the rest of Minnesota has had to cope with. A 2019 Minnesota Commerce Department investigation found that Frontier, the state's leading ISP, had unbelievably badly maintained infrastructure. We're talking about high-capacity long-haul wires draped over shrubs and tree-branches:
Minnesotans on Fiber's "free market" service suffered from frequent outages. They paid higher costs for their unreliable, slow DSL lines than Paul Bunyan customers in Beltrami County paid for fiber that was literally thousands of times faster than Frontier's. Unlike Paul Bunyan's cheerful, local customer service, Frontier's service numbers went to "cost-efficient" (busied-out, distant) call centers where you could wait for hours to speak to someone who would either "accidentally" drop your call or simply refuse to help you. Customers frequently lost access to 911 service, and often saw spurious, sky-high charges on their bills that no one would explain or erase.
Frontier "strongly disagreed" with the report. But when Frontier went bankrupt (a year later!), we got a look at its internal operations and discovered just how much contempt the company had for its customers:
By Frontier's own calculations, it could have made an extra $10 billion by investing in fiber rollouts, but it chose not to make that money, because the stock analysts at institutional investment funds would punish any telco that committed to capital expenditures with long-term payouts. Since Frontier's execs were mostly paid in stock, they decided not to risk a drop in their personal net worth, and so they left ten billion on the table and millions of customers stuck on 19th century copper-line infrastructure – technology that dated back to Samuel Morse and the telegraph.
Frontier was especially interested in customers who had no alternatives – no cable or fixed wireless companies that could offer competition for Frontier's own terrible service. These customers were booked as an "asset" and their connections were earmarked for substandard maintenance and slow upgrades. The old Lily Tomlin gag goes, "We don't care, we don't have to, we're the phone company." But Frontier really cared about the customers who had no alternative – they cared about royally fucking those customers.
Ladies and gentlemen, behold the marvel that is the efficient free market!
Municipal fiber is a godsend. It's fast, cheap and reliable, and it is an engine for economic development. Of course, the Trump administration is running away from municipal fiber – indeed, from all fiber – as fast as it can, because every fiber installation competes with Elon Musk's satellite based internet service, Skylink:
The thing is, satellite internet makes sense in a few places – temporary encampments, ships at sea – but it is vastly more expensive than fiber to install and maintain, and it is millions of times slower than fiber. Nor is this something you can fix by filling the sky with more collision-prone, astronomer-demoralizing minisats – no matter how many satellites there are over your head, they're all in the same universe and have to share its single, fixed electromagnetic spectrum. Meanwhile, if you want more broadband in your fiber network, you just pull another bundle of fiber (principle ingredient: sand) through your conduit and you add dozens of new universes' worth of electromagnetic spectra that are each isolated from one another.
Smart politicians aren't being sucked in by Musk's claim that he can billionaire his way out of the intractable laws of physics. They're pulling fiber, and lots of it. In Utah, the aptly named UTOPIA network is serving publicly owned fiber to 21 cities, and private businesses can offer service over that public system, which means that Utahans have their choice of 18 carries:
To put this in Information Superhighway terms from the 1990s, a symmetrical broadband connection is necessary for you to be a "netizen," while an asymmetrical connection that beams lots of data to you but isn't capable of letting you talk back is what makes you a "mouse potato."
It's grimly hilarious that the right has done so much damage to public fiber rollouts, given their oft-repeated grievances about being "shadowbanned" by dominant services. With symmetrical fiber, every crank could run their own server – a 4chan in every garage. And if that fiber is provided by the government, then your ISP will be bound by the First Amendment, and legally prohibited from discriminating against customers based on their political speech (something that commercial providers can do to their heart's content):
The New Deal was a mere blip in the American project, but a century later, America's poorest, worst-served people are still reaping its benefits, with far faster, cheaper connections than you can get from the big telcos that have sewn up New York City and Los Angeles. And in some of those places, the public ISP doesn't just shower their subscribers with fast data – they shower them with millions of dollars.
If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:
Why the Biden administration is trying to crack down on those sneaky fees charged by hotels, rental cars, internet providers and more.
Call them junk fees, nuisance fees, or sludge, they amount to add-ons to the stated price of something.
Unregulated businesses which have national or local monopolies or who deal in uncompetitive services can mostly charge you whatever they want. Sometimes exorbitant prices are camouflaged by fees billed as add-ons but are usually necessary for the transaction.
In his State of the Union address, President Biden said he would try to crack down on these junk fees.
Hertz charges almost $6 a day simply for using a toll transponder in a rental car. Marriott and Hilton add nightly “resort fees” to the bill even at hotels that nobody would consider to be resorts. American, Delta and United list one airfare when you first search for a seat — and then add charges for basic features like the ability to sit next to your spouse.
Ticketmaster is especially aggressive about imposing fees, as I experienced recently while buying two tickets to a football game. When I initially selected my seats on Ticketmaster’s online stadium map, they cost $48. The bill at checkout was more than one-third higher — $64.40.
President Biden has announced a crackdown on these fees (which his administration calls “junk fees”), and he devoted a section of his State of the Union address to them. “Look, junk fees may not matter to the very wealthy, but they matter to most other folks in homes like the one I grew up in,” he said Tuesday night. “I know how unfair it feels when a company overcharges you and gets away with it.”
Very often consumers don’t pay much attention to the small print written in extended and impenetrable gobbledygook which has become a routine part of many transactions. Did you read the entire text of the terms the last time you purchased or updated software and clicked AGREE?
We lead busy lives that keep us from analyzing every purchase, and we get distracted by salient but misleading information (like a low list price). Big companies, with the resources at their disposal, have learned to take advantage of these limitations. The economist Richard Thaler refers to practices like these as “sludge,” the evil counterpart to nudges that use behavioral economics to improve life.
True, one company could call out another for using sludge. But doing so often requires a complex marketing message that tries to persuade people to overcome their psychological instincts (like the appeal of a low list price). For that reason, Hilton can probably make more money by charging its own sneaky resort fees than by criticizing Marriott’s.
Yep. When competitors don’t call each other out, it may be to hide their own dodgy practices. In such circumstances they are acting more like a cartel than like competing businesses.
One step beyond a cartel is a classic monopoly.
In some markets, consumers don’t have much choice. Ticketmaster’s fees outrage many people. But I didn’t have any choice when I bought those football tickets. There was no rival service selling them.
In recent decades, many American industries have become more concentrated, partly because Washington became more lax about enforcing antitrust laws. Thomas Philippon, an N.Y.U. economist, has estimated that increased corporate concentration costs the typical American household more than $5,000 a year.
There was an orgy of deregulation during the Reagan years with an encore during the first George W. Bush administration. The stated aim of these rounds of deregulation was to get government off the backs of American businesses. What really happened is that they put certain businesses on the backs of American consumers.
Making it difficult to cancel a service is another aspect of this culture of sludge.
The small number of dominant internet providers, for instance, reduces the chances that a new entrant can design a business strategy around undercutting Comcast’s and Verizon’s sneaky fees. Those new entrants don’t exist. Comcast and Verizon have also figured out how to make the cancellation of internet service unpleasant and time-consuming. Airlines — another concentrated industry — use frequent-flier programs in a similar way, effectively punishing customers for switching to a different carrier.
So the Biden administration is trying to alleviate or even put a stop to many of these fees.
The Biden administration is trying to address both causes of sneaky fees. On antitrust, it has adopted a policy more confrontational than that of any other administration in decades. That effort is in its early stages, without many big victories. Still, the administration does seem to be taking corporate concentration seriously.
As for the sludge itself, the administration has already taken steps to restrict a few examples, such as charges for late payments on credit cards. Biden has asked Congress to pass a law with stricter rules for other industries.
The administration’s bigger focus for now is on disclosure — requiring companies to tell consumers up front what the full cost will be. The Transportation Department has proposed such a rule for airlines.
If you’ve been impacted recently by such business practices, this might be a good time to contact the folks who represent you on Capitol Hill and let them know that you demand change. To get rid of some of these dubious fees it may be necessary for Congress to pass legislation.
BONUS TRACK: Over a year ago an SNL sketch featuring Kieran Culkin brilliantly depicted how difficult it is to deal with corporations who wish to retain a stranglehold on your money.
Kieran should return and do a follow-up on dealing with banks.
Look for your internet provider or specific sites to pinpoint where the problem lies. You can also use the graphs to identify if the problems occur at specific times you can then avoid.
I prefer DownDetector because they have outage maps, which is useful if you’re looking up ISP/mobile outages that may be regional.
