Rochester Pursues Business Case Study for Muni Network in Minnesota

The Rochester City Council recently voted unanimously to move forward with a study on the possibilities of publicly owned broadband in this southeastern city. Rochester will then decide whether to move forward with bids to form a public-private partnership for a network, or pursue another path.

After receiving dozens of calls from his constituents, City Councilman Michael Wojcik is asking his colleagues to consider a municipal network. Rochester’s area holds a population of about 110,000, and is home to the world-famous Mayo Clinic

According to the Rochester Post-Bulletin, Charter Communications operates its cable TV and Internet services under a franchise agreement with the city. That agreement is up for a renewal on March 31.

Wojcik said his constituents have been angered over issues such as digital box fees, but most of the complaints are about broadband service, which Wojcik said is essential. He said Charter's recent price increase for stand-alone broadband from $55 to $60 per month makes the service unobtainable for a percentage of area families with children in school.

"Broadband is key for information for a lot of people, particularly younger generations, and going forward, it becomes more and more critical," he said.

In 2010 Wojcik asked the council to investigate options for publicly owned infrastructure, but the measure did not advance. Wojcik says he hopes that citizen outrage with poor Charter service and contract negotiations will encourage city council members to take action.

The Council invited Chris to offer expert opinion. KIMT TV covered the decision and spoke with him after the meeting: 

“I think it’s a necessary step for the Rochester City government to get involved, because over ten years of experience suggests that the private sector alone is not going to solve this problem, that if Rochester needs higher quality internet access it may have to do it itself.”

Here is vide of KIMT TV's coverage:

Christopher Mitchell on KSTX, Texas Public Radio

Chris Mitchell spoke on TPR’s “The Source” about FCC Chairman Tom Wheeler’s support of Title II reclassification and future prospects for networks like The San Antonio Area Broadband Network (SAABN). 

Guests discussed how TV and Cable Lobbyists were able to create barriers to networks, whether the FCC has the power to preempt rules that limit competition, and why telecom giants like Comcast should not be able to make certain deals or degrade Internet speeds based on whether content providers pay extra money.

San Antonio was one of the founding members of Next Century Cities and has been working to link major institutions and the city’s medical center through CPS Energy’s existing fiber.

Listen to the interview:

Chris responds to President Obama’s endorsement of community networks on MPR's "Daily Circuit"

Minnesota Public Radio’s Daily Circuit (MPR) interviewed Chris about President Obama’s recent endorsment to end restrictions on states that limit local broadband authority. Chris and Danna Mackenzie, executive director of the Minnesota Office of Broadband Development, answered questions about what Obama’s announcement means for faster, cheaper, more reliable Internet for consumers. 

Chris explained that it’s great to see federal government “getting it right” and championing the rights of local governments. He also discredits the argument about public money for Internet networks, and addresses why municipal approaches offer some of the wisest and most efficient use of taxpayer dollars.

You can listen to a 3-minute clip in the audio player below, or click the link to hear the entire interview: http://www.mprnews.org/story/2014/11/13/daily-circuit-net-neutrality

 

Community Broadband Media Roundup - February 20

Next week the FCC will make a landmark decision that will affect the future of community networks. Here's a roundup of stories.

Hate Your Internet Service Provider? You Should Have Feb. 26 Circled on Your Calendar by Daniel B. Kline, Motley Fool

The state of city-run Internet by Allan Holmes, Center for Public Integrity

The Center and Reveal revisited Tullahoma, Tennessee and Fayetteville, North Carolina, where state laws restrict municipal broadband growth. 

How Will the Fight over Public ISPs and Net Neutrality Play Out? by Larry Greenemeier, Scientific American

In an effort to sort through these and other issues impacting how people will access and use the Internet for years to come, Scientific American spoke with Lev Gonick, CEO of OneCommunity, an ISP for Case Western Reserve University, University Hospitals and another 1,800 public-benefit organizations in northeastern Ohio. 

“The idea of local governments taking it upon themselves to improve community broadband speeds has caught on in recent years, particularly in towns and cities that host major universities craving greater network bandwidth.”

Idaho: 

Judge's ruling worsens Idaho's high school Internet headache by Bill Roberts, Idaho Statesman. We have long argued that throwing money at the biggest carriers is poor policy and a waste of taxpayer dollars.

A deadline for the loss of service looms as officials scramble for solutions.

Iowa:

Providers: Iowa's broadband expansion will take time, money by Barbara Rodriguez, News Tribune

Illinois:

Search still on for immaculate reception by Rich Warren: News-Gazette: Champaign, Illinois

“The FCC may truly blast open the cable industry to competition by overruling laws in Tennessee and North Carolina, which could create a precedent in the remaining 20 states that restrict municipal/public Internet providers. Unfortunately, huge corporations, such as Verizon, threaten to fight this in court to the bitter end.”

Maine:

Town weighing options to create a fiber optic broadband network by Robert Levin, Mount Desert Islander

The town will spend up to $20,000 to study the feasibility of constructing its own fiber optic network to link town buildings, schools and possibly private businesses and residences to high-speed broadband Internet.

Massachussets:

Baker pledges $50 million for Western Mass. broadband by Jack Newsham, Boston Globe

Missouri:

Schaefer seeks to block Columbia from creating high-speed Internet utility by Rudi Keller, Columbia Tribune

In a letter to committee Chairman Eric Schmitt, a coalition of private companies and industry associations said the bill would hinder economic growth, especially in rural areas where private companies are reluctant to invest.

“These communities should be free of artificial barriers, including the cumbersome, time-consuming, expensive, and ambiguous requirements” of Schaefer’s bill, said the letter, signed by Google, Netflix, the Telecommunications Industry Association and the American Public Power Association, among others.

Minnesota:

Broadband appetite grows in Upper Minnesota River Valley by Tom Cherveny 

Green Isle, Townships Nearing Final Phase for Fiber Project OK by Belle Plaine Herald

Ohio:

Cleveland seen pioneering a new kind of smart growth, Internet driven development: the Mix by Robert L. Smith, The Plain Dealer 

Tennessee:

TUB rural broadband gets another hearing  by Marian Galbraith

Texas:

EUB member proposes municipal-owned fiber-optic network by Matt Dotray, A-J Media

West Virginia:

W.Va. bill to build $78M rural broadband network advances by Eric Eyre, West Virginia Gazette

Oh Snap! House buckling to Frontier, Republican delegate alleges by Eric Eyre , West Virginia Gazette

“No wonder they’re called Frontier, Those are the kinds of speeds you’d expect on the American frontier in the 17th century,” Smith said in a press release.  

“I may be alienated by my party in the end, but right is right, and wrong is wrong. [Internet companies] ought to be held accountable for what they’re providing.”

Opinion:

Editorial: Let cities compete for broadband: Our view USA Today

Why should they be powerless as big companies route the information superhighway around them?

Editorial: Broadband development holds possibilities by Watertown Daily Times

Broadband is better as a public-private partnership By Ben Franske, MinnPost 

 

Internet and Education:

Technology at their fingertips, but lacking Internet

Students have access to the gadgets, but when Internet is lacking at home, they may fall behind. 

 

Comcast:

Comcast agent tells customer that data caps are “mandated by law” by Jon Brodkin, Ars Technica

Comcast forced to clarify that "there is no law" requiring data caps.

Cable customer service “unacceptable,” says cable’s top lobbyist

Former FCC Chairman Michael Powell loves cable, but facts are facts.

USA Today Leadership Latest to Support Munis

USA Today recently joined the growing list of national press to publicly support local telecommunications authority. In its February 16th opinion piece, the Editorial Board commented on the proposed rule being considered by the FCC that would allow local communities to chart their own course with no preemption from state legislatures:

The FCC should stand up to the broadband lobby and approve the rule. The laws in question have not been passed in the name of limited government but rather in the name of limiting competition.

USA Today recognizes that many of the communities that invest in infrastructure do so out of necessity when they cannot draw the interest of the big players that fight to limit their ability to make those investments. Whether or not a community decides to deploy a muni should always be left up to the people who live there, argues the Editorial Board:

The question, however, is not whether these systems are good, but whether they should be quashed by acts of legislatures. The answer is no.

Republican Rep. McMorris Rodgers on Broadband as Essential Infrastructure

President Obama is not the only Washington politician who is coming out to describe broadband networks as critical infrastructure. Cathy McMorris Rodgers, a Republican Representative for the 5th congressional district in the state of Washington recently said the same at the Internet Policy Conference, hosted by the Internet Education Foundation in Washington DC.

C-SPAN televised the event and here is McMorris Rodgers as she addresses the question of how involved the federal government should be in developing rural networks.

 

Christopher Mitchell discusses Net Neutrality on Minnesota Public Radio’s “Daily Circuit.”

Last fall, MPR's "Daily Circuit" interviewed Chris regarding President Obama’s net neutrality plan and how it could shape the future of the Internet.

Chris discussed why Obama’s request that Internet service be reclassified under Title II is necessary, but not sufficient to solve current market problems. Chris explained that right now consumers have very few choices, and big telecom is using its monopoly power to disadvantage competitors. 

Title II requires telecommunications companies to charge reasonable rates to everyone, rather than implementing “fast lanes” for certain companies.

Chris was joined by Chester Wisniewski, senior security advisor at Sophos. The interview was hosted by MPR’s Tom Crann.

Listen to the interview.

Municipal Networks and Small ISP Partners to FCC: Title II Not a Problem

A group of municipal leaders and their private sector small ISP partners submitted an ex parte filing with the FCC today stating that they see no reason to fear Title II reclassification of Internet access. The statement, signed by a variety of towns and providers from different areas of the country is reproduced in full:

Dear Chairman Wheeler,

As a group of local governments and small ISPs that have been working to expand the highest quality Internet access to our communities, we commend you for your efforts to improve Internet access across the country. We are committed to a free and open Internet without blocking, throttling, or discriminating by ISPs.

As local governments and small ISPs, we wanted to ensure you are aware that not all local governments and ISPs think alike on matters like reclassification. For instance, on July 18, 2014, the mayors of New York City; Portland, Oregon; and San Francisco called on you to issue the strongest possible rules to guarantee Net Neutrality. Each of these communities is also taking steps to expand and improve high quality Internet access to their businesses and residents.

Our approaches vary but are already resulting in the highest level of service available because we are committed to expanding high quality Internet access to supercharge local economies and improve quality of life. We have no interest in simply replicating older triple play model approaches. We want to build the infrastructure of the future and we see nothing in the proposed Title II reclassification of Internet access that would hinder our ability to do that. As Sonic CEO Dane Jasper has strongly argued, ISPs that don’t want to interfere with their subscribers’ traffic should expect a light regulatory touch.

We thank you for your leadership during this difficult period of transition. We understand that many of our colleagues have trouble trusting the FCC given a history that has, in many cases, ignored the challenges small entities face in this industry. But whether it has been increasing the speed definition of broadband, or calling for the removal of barriers to community networks, we have been impressed with your willingness to take on powerful interest groups to ensure the Internet remains a vibrant, open platform.

We look forward to working with you to ensure that future rules recognize the unique challenges of small providers and innovative approaches to expanding access.

Sincerely,

  • Peter d'Errico, Town of Leverett MA, Municipal Light Plant, Town of Leverett MA Select Board
  • Fletcher Kittredge, President and CEO, GWI, Maine
  • Rick Bates, Town Manager, Town of Rockport, Maine
  • Kevin Utz, Mayor, Westminster, Maryland
  • Dr Robert Wack, Council Member, Westminster, Maryland 
  • R. Brough Turner, Founder and CTO, netBlazr Inc., Boston, MA
  • Pete Ashdown, Founder and CEO of XMission, Salt Lake City, Utah
  • Elliot Noss, CEO, Tucows / Ting
  • Kim Kleppe, Information Systems Director, City of Mount Vernon, Washington
  • Dana Kirkham, Mayor, City of Ammon, ID
  • Levi C. Maaia, President, Full Channel Labs, Warren, Rhode Island

You can also view the PDF of the filing at the FCC website.

For more on Title II and how it may or may not affect municipal networks and their private partners, listen to Chris interview Chris Lewis from Public Knowledge in Episode #138 of the Community Broadband Bits podcast.

Grover Beach Chooses Local Partner to Improve Local Connectivity for Businesses

After several years of considering options for a municipal network, the community of Grover Beach, California, is improving local connectivity options through a collaboration with private partner Digital West

According to the San Luis Obispo Tribune, the City struck a deal last fall with the local firm that will provide gigabit connectivity to local business customers. A city staff report states that Grover Beach will install and own a series of conduit that will house fiber owned by Digital West. 

The company, a data storage and web hosting firm located in nearby San Luis Obispo, will manage the fiber network. Digital West will lease conduit space from the city for 5.1% of its gross revenue from its operation of the private portion of the system. The initial lease is for a 10-year term. The company will also transfer ownership of some of the fiber to the city for public purposes. San Luis Obispo (SLO) County also wants to connect its facilities in the area and will contribute to the cost of the project. It appears as though SLO County will use the fiber provided to Grover Beach.

Grover Beach will contribute $500,000; SLO County will contribute $268,000; Digital West will contribute $159,000 to the total cost of $927,000 of the project. The parties agree that the city's contribution will be capped at $500,000. The staff report recommends an interdepartmental loan to finance the city's portion of the conduit installation.

Digital West has been an instrumental player in the city's quest for improved connectivity for several years. The company provides Internet service in SLO County and manages a private network offering connectivity, colocation, and cloud services to commercial clients. 

Grover Beach is also the location of the Pacific Crossing trans-Pacific fiber cable, connecting to Shima, Japan. In 2009, Digital West began working with Grover Beach to find ways to take advantage of the pipe. The city and Digital West have sence developed a Technology Master Plan and an Implementation Plan.

AT&T, Level 3, CenturyLink, and Verizon operate in the area, but Digital West plans to offer more affordable options. The city's vision includes providing more options for the numerous small businesses and to encourage more home based business. The staff report quoted Digital West estimated pricing at $100 per month for 100 Mbps and $150 per month for 1 gigabit service. Similar services in the area run between $250 per month and $500 per month according to the report.

Still Time to Register for F2C 2015…But Hurry!

If you are still contemplating whether or not to trek to New York City on March 2nd and 3rd for Freedom to Connect 2015, now is the time to take action. Tickets are going fast and seats are limited. ATTENDANCE IS BY REGISTRATION ONLY and this year the event is hot!

Register online through EventBrite.com.

A working agenda has just been posted. An email from David Isenberg, who tirelessly plans and promotes the event every year, described some of the issues to be discussed:

  • The aspects of the Internet's protocol suite that make it the success it has become
  • The all-fronts attack on the Internet by the National Security Agency
  • How community controlled networks, especially the fiber to the home networks being built by communities such as Chattanooga TN and Wilson NC, as well as alternative networks being built by Google, Ting and others, are challenging incumbent telcos and cablecos
  • Title II as the centerpiece of the FCC Open Internet Report and Order

The agenda will continue to develop as planning progresses, so be sure to revisit.

Guest speakers include:

  • Chris Mitchell from ILSR and MuniNetworks.org
  • Susan Crawford, Cardozo Law School
  • Harold Feld, Public Knowledge
  • Jim Baller, Baller Herbst Stokes & Lide
  • Deb Socia, Next Century Cities
  • Gigi Sohn, FCC
  • Tim Wu, Columbia Law School

...and many, many others.

If you are unable to attend, you can still livestream Tuesday's event for a $25 fee. Sign up at http://freedom-to-connect.cleeng.com/.