"Level Playing Field" Padded With Public Dollars to Private Providers

Municipal broadband networks have been gaining traction across the country. It's easy to see why: In many rural and low-income communities, privately offered broadband services are nonexistent. In its 2012 Broadband Progress Report the Federal Communications Commission counted nearly 20 million Americans (the vast majority living in rural areas) beyond the reach of broadband.

The Free Press' Timothy Karr's words are supported by the growing number of pins on our Community Network Map. We connect with places nearly every day where municipal networks fill the cavernous gaps left by the massive corporations. Large cable and telecom providers do not hide their aversion to servicing rural areas, yet year after year their lobbying dollars persuade state politicians to introduce bills to stop the development of municipal networks. Karr reviewed recent efforts to use state laws to stifle community owned networks in a Huffington Post article.

As readers will recall, this year's front lines were in Atlanta, where HB 282 failed. We hope that loss may indicate a turning point in advancing municipal network barriers because the bill lost on a 94-70 vote with bipartisan opposition. If it had succeeded, Georgia would have been number 20 on a list of states that, thanks to ALEC and big corporate sponsors like AT&T, Comcast, Verizon, and Time Warner Cable, have decided to leave their citizenry begging for the private market to come their way.

Time and again, the supporting argument goes like this:

"A vote 'yes' for this bill means that you support free markets and free enterprise," [Rep Hamilton, the Chief Author of HB 282] said [on the House Floor].

A 'no' vote means that you want more federal dollars to prop up cities, Hamilton said.

But Karr points out that some policy makers are starting to question that argument, with good reason. From his article:

"They talk about [the companies] as if they are totally free market and free enterprise, but doesn't AT&T get some tax breaks?" [Rep. Debbie Buckner] asked. "Didn't Windstream get some stimulus money? Isn't that government money?"

Indeed, phone and cable companies have been on federal welfare since their inception. A 2011 Institute on Taxation and Economic Policy study shows AT&T and Verizon receiving more than $26 billion in tax subsidies from 2008 through 2010. The FCC's 2012 report on Universal Service Fund subsidies shows nearly $3 billion in federal payments to AT&T, Verizon and Windstream.

In 2010, Windstream, Corp. -- a telecommunications company with services across the South -- applied for $238 million in federal stimulus grants to improve its service in 16 states. More than 16 million taxpayer dollars went to upgrade the company's services in Georgia.

So, while AT&T, Verizon, and Windstream continue to work with legislators and lobbyists who advance bills that maintain an environment rife with corporate welfare, rural Americans get nothing for their contributions. As the word spreads and more people learn about the benefits of community networks, we anticipate more people will recognize their value. In addition to saving public dollars, increasing connectivity, and spurring economic development, local networks are accountable to the communities they serve, unlike the big corporate ISPs, who are accountable to shareholders.

"The private companies have not been there for us," said Rep. Buckner, who represents rural parts of Talbot and Meriwether Counties. "And if they say they're going to come and be there for us, we don't know how long it will take them to find us."

Opelika Builds First Full Fiber Network in Alabama - Community Broadband Bits Episode 40

Opelika Mayor Gary Fuller and Jennifer McCain, partner of the Motive Group discuss why this Alabama town is the first to build its own fiber optic network in the state.

In short, Opelika had long been fed up with the services offered by Charter Cable and Charter was not amenable to meeting the community's needs. They decided to build a FTTH network that would meet Smart Grid needs as well as delivering telephone, television, and Internet access. Due to state law, they had to hold a referendum to offer television services. Despite a misinformation campaign, the community overwhelmingly supported building a community owned network.

Toward the end of our discussion, Mayor Fuller offers some thoughts on what it takes for an elected official to commit to an expensive investment where one has to pay all the costs and stand for re-election before the benefits start to accrue. In short, it takes courage. And having the unanimous support of the City Council is helpful also!

We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address.

This show is 30 minutes long and can be played below on this page or subscribe via iTunes or via the tool of your choice using this feed. Search for us in iTunes and leave a positive comment!

Listen to previous episodes here. You can can download this Mp3 file directly from here.

Thanks to D. Charles Speer & the Helix for the music, licensed using Creative Commons.

Princeton, Massachusetts, Considering Building Own Fiber Network

We recently reached out to Princeton, Massachusetts, after reading several local news articles about the city's ambition to improve broadband in the community. Phyllis Booth of the Landmark has been covering the story. Community leaders recently mailed survey cards to every residence in town and put the survey online to provide ample opportunity for feedback.

With survey results complied, the answer from respondents was an overwhelming, "Yes! We want better Internet!" The Princeton Broadband Committee has since made the results available in a series of visuals that express the community's experiences with speed, customer satisfaction, desirable applications, and other respondent concerns. Detailed survey results are available for review [PDF].

The results come as no surprise to Stan Moss, Board of Selectmen Member who is also on the Broadband Committee. "Everybody has tried everything," says Stan when he describes the survey outcome. The community of 3,300 has access to DSL in about 49% of households and other choices are satellite, dial-up, and wireless. According to Moss, Princeton DSL customers averaged a D+. From the Landmark article:

“Once we invest in the fiber it’s pretty good. It’s not costly to upgrade in the future, it’s reliable once it’s in place,” said [Broadband Committee Member John] Kowaleski. “If the town doesn’t do this, no one will,” he added. The town has contacted Verizon and Charter and “we’re not even on their plan,’’ said Kowaleski. “Princeton has insurmountable challenges. It isn’t profitable for Verizon or any other company to provide the infrastructure to give us the service,” said Kowaleski.

Moss says he receives calls on a regular basis from residents who want to know when the city is going to provide FTTH. Most of those calls come from people who work from home or have school age children.

Princeton, Massachusetts Map

K-8 Schools in Princeton currently use slow and unreliable T1 connections and bringing fiber to the students is a high priority. High school students attend in a nearby consolidated school. Often prospective families tour the local school and are thrilled to see small class sizes and an intimate setting. "When they learn that there is no high speed Internet for their children, you never see them again," says Moss.

While not set in stone, The Massachusetts Broadband Initiative (MBI) plans to bring its middle mile network to the local Thomas Prince School. The public library, the town hall, the public safety facility, the senior center, and the municipal light department will likely also be connected through MBI. Princeton's Broadband Committee wants to use that momentum to get households connected and capitalize on the benefits of ubiquitous access.

Real estate professionals in Princeton expect a direct benefit from a fiber network. They attribute lower property values in Princeton, in part, to the lack of high speed connectivity. There are a number of prospective telecommuters and home based businesses who have also spoken out in favor of a municipal FTTH network. One entrepreneur in Princeton who would like to work out of his home, spends $2,000 on office space in another city just to have productive Internet speeds.

Princeton is looking to Leverett, Massachusetts, as an example. (Btw, Princeton is not the first community we have encountered watching Leverett's process - way to go Leverett!) The Broadband Committee sees similarities between Princeton and Leverett and has watched the rural community as it move ahead. Both are rural, tree covered, hilly, and charming says Moss. "When I see some one new in town I ask them how they come to move to Princeton because you don't end up here by accident."

Readers will recall that Leverett plans to fund the project with a municipal bond. Debt service on the bond will be paid with revenue from the network and a property tax increase, about 6%. The community has already voted to approve the measure. Princeton believes a similar approach will work for them. From the Landmark:

We believe we can do this for even less than people are paying right now for Internet, said Kowaleski. “If the town funds it with a municipal bond we could have this in place by January 2015,” he added.

...

The committee is estimating monthly cost for fiber to the home would be $63.30. With a 20-year bond to pay for the buildout, the cost for the average homeowner (based on a home valued at $303,280) for taxes would be $284.90 per year, for a 20- year average.

According to the committee, the average cost today for subscribers for the Internet and phone bill is between $101 and $130, depending on whether the user has satellite, DSL or wireless. The new network cost would be $63.30 per month, plus $25.27 per month for the tax cost for the bond, for a monthly cost of $88.57.

Princeton Broadband Logo

While there may be some similarities with Leverett, Moss notes that Princeton has fewer more households over twice as many road miles, creating a more sparsely populated community. Fortunately, it also has an advantage not found in Leverett - a chance to hang their cable expeditiously.

Moss tells us that Princeton has worked with the local municipal light plant to reach an arrangement to speed up the process. Leverett has to wait for Verizon to prepare poles for the new fiber, estimated to take six to twelve months. Princeton's municipal light plant will allow fiber optic cable to be hung in the places reserved for power line attachments.

To save money and speed up the process, the Broadband Committee will take on the task of documenting utility poles. From another Leader article:

At the Monday, March 11 meeting, committee chairman Steve Cullen told selectmen that committee members and volunteers will do the work, saving taxpayers as much as $50,000. “We have the technology to do this,” said Cullen. “We’ll look at every single road and utility pole, take photos and bring the information to an engineering company to cut back on the time line.” Documenting the poles accounts for approximately 60 to 70 percent of the expense related to design costs, said Cullen.

The next step will be a series of community meetings to report the results of the survey. Moss expects the Broadband Committee will approach residents at the May 14th Town Meeting where they will ask for approval to fund a network design. Moss is optimistic and believes the city may be hanging fiber optic cable as early as October.

Regardless of what approach they take, the people who live there are hungry for something better. We found one survey question and the results especially revealing. When asked "What Internet speed would prompt residents to change Internet providers?," 60% of respondents answered, "Any speed, as long as it's faster."

The Urge to Create

A recent Wired article reminded me of the first time a friend tipped me off to the then-new Red vs. Blue videos (beware salty language, adult themes). At the time, I found it hilarious and didn't give a thought to it ever being called "The Future of TV."

Now called "machinima," it has exploded among video game enthusiasts and reminds me of just how much people like to create their own content. The big cable and telephone companies want us to believe that our upstream connections should be much slower than our downstream, encouraging us to consume content rather than creating it.

It did not take long after giving people video games that they wanted to create their own levels and share them. Even before there was a place to easily host video, people were writing scripts to turn a video game into a sitcom and sharing it. From the Wired article:

“It’s part of a larger cultural shift in gaming,” Jones says. “This generation doesn’t watch television in the same way. They want to create. We’re giving them something that television isn’t.”

The Machinima videos have collectively surpassed 2.5 billion views. That is a lot of consumption, but it wouldn't have been possible without a mechanism for some creative folks to easily share their new idea.

We need robust connections in both downstream and upstream to make the most of the Internet. The only reason to limit the upstream is to enforce consumer behavior, which diminishes us all.

The First Honest Cable Company

This video is really making the rounds - I have seen it on multiple lists and many have forwarded it to me. I found it hilarous, but be warned that it features salty language that may be offensive to some and is probably NSFW.

Video: 
See video

Benton Public Utility District Brings Fiber to Richland, Washington

Benton PUD, located in south central Washington, recently expanded its fiber foot print through Richland and Rattlesnake Mountain. The move involved a collaborative effort between the City of Richland, the Benton PUD, and the Department of Energy.

According to Annette Cary of the Tri-City Herald, the expansion will bring better communications to the Hanford Nuclear Site. Schools, libraries, and businesses in Richland will take advantage of the additional fiber from downtown to north Richland.

Benton PUD offers fiber to businesses in Kennewick, Prosser, Benton City, and now Richland via an open access model. Residential wireless is also available in Prosser, Pesco and Kennewick with five retail providers on the network.

According to the article, Benton PUD will also use the fiber for its advanced metering system. From the article:

"This agreement allows Benton PUD to increase its capacity and redundancy, while also helping the Hanford project," Rick Dunn, PUD director of engineering, said in a statement.

The fiber also provides additional capacity for the Hanford Federal Cloud, a system that allows Hanford information to be stored at centralized and consolidated data centers rather than on individual worker's computers. The fiber serves several DOE facilities connected to Hanford.

"Having a fast, reliable communications infrastructure is critical in supporting Hanford's cleanup mission," Ben Ellison, DOE's Hanford chief information officer, said in a statement. "This project gives DOE the capacity it needs to further the mission and allows for future growth of both the community and Hanford cleanup activities."

While the DOE sees the fiber as an asset in the ongoing clean up of the decommissioned nuclear production complex, local leaders see it as an opportunity to bring more business to the area. Richalnd and southern Washington are also known for low power rates, another feature attractive to potential businesses. As clean-up winds down at Hanford, Richland is looking to the future and wisely using fiber as a way to reach out for commercial opportunities.

In Georgia, Tech City Opposed HB 282 With Official Resolution

We were happy to report when HB 282 failed to advance on the floor of the Georgia General Assembly House in a bipartisan vote. We were equally pleased to learn that at least one Georgia community passed an official resolution opposing the bill while it was making its way through the committee process. 

Alpharetta, an Atlanta suburb, is home to 57,000 people and calls itself the "Technology City of the South." The community has no municipal network and no current plans to invest in one, but nevertheless passed a resolution on February 25th which opposed HB 282.

A Bob Pepalis article on the decision quoted Councilman Jim Gilvin:

"Once again I think this is just a state legislator jumping into local business. And I appreciate their concerns, but we do a pretty good job around here, I think. And if residents don't think so, they will be more than happy to let us know," Gilvin said. "I'd appreciate it if they'd just let us handle our government."

Pepalis heard similar sentiments from Councilman Chris Owens via email

"This goes not only beyond local control, but also impacts our ability and other communities ability to be masters of our own destiny and influence on development as well as provides services to their constituents, both residential and commercial," Owens said. "If that's something in a community's best interests, who better to make that decision than a community rather than the state on behalf of the community."

First, the resolution [PDF] sums up the real world affects of the proposal, if it had passed:

WHEREAS, House Bill 282 would tie the hands of municipal officials in their efforts to build digital networks they need to attract economic development and create a high quality of life for their citizens; and

WHEREAS, House Bill 282 is a bill that would undermine self-determination of cities in the digital age as illustrated by the following:

  • Before a city could provide new high speed Internet, cable, telecom or broadband service, it would be required to:

-Receive the permission of the Public Service Commission; and

-Prove to the Public Service Commission that each census block the city wants to serve has no existing broadband service (Census blocks are the smallest geographic area the Census Bureau uses for data collection. There are 291,086 census blocks in Georgia).

  • Existing local government cable, high speed Internet, telecom and broadband providers would be subject to the following service area restrictions:

-A city would not be allowed to expand its network to provide service to any customers unless the customers have no existing broadband service, regardless of the speed; and

-The city would not be allowed to provide the service even within the city’s boundaries.

Alpharetta seal

The resolution also called out the bill's authors and supporters:

And WHEREAS House Bill 282 would reduce Georgia's competitiveness and ability to attract new jobs as illustrated by the following:

  • Many Georgia communities have slow or limited access to the Internet compared to regional and international peers. This Bill sends a strong state message to these areas – “we don’t care.”
  • This is an effort to “protect” profits for private companies and ignores the economic development challenges many communities face.
  • The final report of Governor Deal’s Competitiveness Initiative indicates that many parts of rural Georgia are at a disadvantage because of a lack of broadband service. House Bill 282 would limit the ability of communities to bridge the digital divide where private providers have decided those investments do not fit their business model.
  • While the proposed legislation purports to exclude “unserved” areas from its purview, the definition of “unserved” is so narrow that virtually no community would ever fall under the exception.

NOW, THEREFORE, the Mayor and Council hereby RESOLVE that the passage of House Bill 282 (Preemption on Municipal Broadband), as well as any similar legislation, is hereby opposed as not being in the best interest of the City of Alpharetta and other municipalities within the state; and IT IS FURTHER RESOLVED that a copy of this Resolution be delivered to members of the City’s local delegation.

While resolutions like Alpharetta's are not the only contributing factor to a state bill success or failure, it is another tool in the toolbox for local leadership. In addition to raising awareness at the local level, official resolutions give state and federal leaders a clear indication of how their constituents feel about specific proposals, providing a hook for media to cover the larger story.

San Jose Launches Super Fast Wi-fi

San Jose launched its new, publicly owned, downtown free Wi-Fi on March 14th. This is the community's third attempt at bringing a successful free service to downtown and city officials have made much ado about the new "Wickedly Fast Wi-Fi Network." The city teamed up with SmartWAVE Technologies and Ruckus Wireless to design and install the $94,000 network. Ongoing costs are estimated at $22,000 per year.

From the press release, reprinted in PR Newswire:

"Utilizing our Smart Wi-Fi technology, this Wickedly Fast Wi-Fi Network offers the fastest public Wi-Fi service in the country, and we’re proud to be a part of enabling that,” said Selina Lo, president and CEO of Ruckus Wireless. “On a smartphone, a user will be able to experience speeds of anywhere from two to three Megabits per second. This is easily three to four times faster than any other public network service,” Lo concludes. “There’s a huge, growing demand around the country, and the world, for more reliable public and managed Wi-Fi services to satisfy an exploding population of users now armed with multiple smart mobile devices, and where better to help satisfy that demand than starting with the Capital of Silicon Valley.”

The network will also speed up parking transactions in the City's downtown parking system and support downtown city government facilities.

In a KTVU report, Vijay Sammetta, Chief INformation Officer for San Jose described the new Wi-fi:

"Typically we see municipal a thousand or two-thousand miles per hour in layman's terms," said Vijay Sammeta, San Jose's Chief Information Officer.  "We're upping that ante up to 10,000 miles per hour."

Update: The Wall Street Jounal has also just covered the recent proliferation of community owned Wi-Fi networks.

Christopher Mitchell to Join FCC Panel on Gigabit Communities

On Wednesday, March 26, Christopher Mitchell will be on the last panel at the Federal Communication Commission's Gigabit Workshop. The full agenda is here and starts at 9 AM EDT.

The entire event will be webcast via fcc.gov/live.

Mitchell's panel will begin at 2:20 EDT and discuss the ways communities can leverage local tools to build their own networks or to attract partners.

All of the panels are scheduled to spend a lot of time answering questions - remote viewers can submit questions to livequestions@fcc.gov. Please do!

Moultrie City Manager Discusses Origins of CNS Network in Georgia for Community Broadband Bits Episode 39

Mike Scott, City Manager of Moultrie in Georgia, joins us for Episode #39 of the Community Broadband Bits podcast to share the origins of the Community Network Services (CNS) network that joins four towns in four counties in rural southwest Georgia.

In this interview, Mike Scott shares some of the benefits of the network for local schools and community savings. Built originally because the existing cable and telephone companies would not invest in their communities, CNS has proved itself an incredibly valuable community investment.

CNS is credited with creating over 6,000 jobs in the communities it serves, a tremendous boon for the communities that joined together to create this network. During our interview (below), we note a video they created to show off some of the benefits of this network. Here it is:

We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address.

This show is 20 minutes long and can be played below on this page or subscribe via iTunes or via the tool of your choice using this feed. Search for us in iTunes and leave a positive comment!

Listen to previous episodes here. You can can download this Mp3 file directly from here.

Thanks to D. Charles Speer & the Helix for the music, licensed using Creative Commons.