A Short CLIC Background - Community Broadband Bits Podcast Episode 103

This week, Lisa and I discuss the Coalition for Local Internet Choice, CLIC, that was announced last week. This is a short episode that aims to answer some of the common questions about CLIC, including why we felt it was necessary to create this coalition now.

You can still sign up to become a member of CLIC if you agree with our statement of principles that these important decisions should be made by communities, not preempted by states.

We are compiling a long list of those that support local authority - businesses, trade groups, utilities, community organizations, local governments, and more!

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 8 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

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

Thanks to Waylon Thornton for the music, licensed using Creative Commons. The song is "Bronco Romp."

Verizon Engaged in IP Transition With No Rules: Where is the FCC?

Public Knowledge, The Utility Reform Network (TURN), and a long list of other public interest groups, recently filed a letter with the FCC urging the agency to launch an investigation. Specifically, the alliance asks the FCC to look into reports that Verizon is forcing customers to move from copper lines to fiber IP-based service. From the letter:

The Commission must begin investigating this issue quickly, lest inaction send carriers the message that abandoning customers in violation of their legal obligations is acceptable. Delay will only lead to carriers hanging up on more customers at a time when basic communications service is more important than ever.

In California, New York, New Jersey, and DC, large corporate carriers such as Verizon, AT&T, and Frontier are not maintaining traditional copper lines. Public Knowledge and TURN note in their letter that in Maryland, the state's Office of the People's Counsel found that "Verizon routinely migrates customers from the copper network to unregulated services with inadequate procedures for customer notice and consent."

We noted last summer that Verizon faced criticism for transitioning residents in the Catskills and in New York City to VoiceLink without disclosing the full limitations of the service. This was the tip of the iceberg. Verizon has failed to repair copper lines when requested. People in some areas of New York City have been told they must upgrade to FiOS in order to get phone service. There are even some customers who have been told they cannot order stand alone telephone service.

Because IP-based services are not yet regulated, carriers will not be obliged to provide services to everyone or to maintain communications infrastructure as they must with copper lines. 

The full text of the letter [PDF] and exhibits [PDF] provide details on Verizon's purposeful neglect of existing copper lines, customer service tactics to push customers on to IP services, and more about the company's nation-wide strategy. From the letter:

The problems that have garnered public attention so far are geographically widespread, and the Commission must take seriously the likelihood that these problems are occurring in many more states, leaving an unknown number of people with substandard basic communications service. This state of affairs is unacceptable. The Commission must now assert its leadership in this area, work with states where consumers are being denied adequate basic service, investigate places where customers are losing reliable basic voice service, and ensure that our country is living up to its commitment to provide basic communications service to everyone.

TURN wants Verizon customers to contact them, if they have experienced similar problems with the provider.

Community Networks: Checks and Balances

As both AT&T and Comcast seek to increase their market power by buying rivals instead of competing, Barry Lynn reminds us of our history of fighting such consolidated power. From Cornered: The New Monopoly Capitalism and the Economics of Destruction.

In the modern era in the United States, efficiency was a favorite defense by industrial autocrats like John D. Rockefeller and financial autocrats like J.P. Morgan of their used of corporate power to arbitrarily determine particularly political economic outcomes. The progressive elite, meanwhile, later turned efficiency into a veritable religion.

That's why the American people learned long ago to reject efficiency as either a goal or a means to public or private governance, and why we consistently rejected it for the first two hundred years of our nation. We understood that efficiency was a code word for top-down autocratic rule by the lords and the private corporate estates or the "public" state. Hence we rejected efficiency in the Declaration of Independence and again in the Constitution. We rejected efficiency when we wrote the Sherman Antitrust Act, then reiterated our rejection time and again in our other antimonopoly laws.

The Supreme Court unanimously rejected efficiency as an excuse for industrial dictatorship when it ordered the breakup of Standard Oil despite the fact that the company had lowered the cost of a gallon of kerosene by more than half. The Supreme Court unanimously rejected the efficiency argument again in 1935 when it ruled President Roosevelt's National Industrial Recovery Act unconstitutional. In every case, the American people embraced not efficiency but freedom and moved to protect that freedom through the erection of intricate systems of checks and balances designed to scatter power.

FCC's Wheeler Forging Ahead As Support Grows to Restore Local Decision-Making

In a June 10 Official FCC Blog post, Chairman Tom Wheeler's words show continued resolve to restore local decision-making to communities that want to evaluate their own investments and partnerships. This is the latest in a series of public statements indicating the agency is ready to assert authority and remove barriers to community networks.

Wheeler writes:

If the people, acting through their elected local governments, want to pursue competitive community broadband, they shouldn’t be stopped by state laws promoted by cable and telephone companies that don’t want that competition.

I believe that it is in the best interests of consumers and competition that the FCC exercises its power to preempt state laws that ban or restrict competition from community broadband. Given the opportunity, we will do so.

In April, Wheeler raised a few lobbyist eyebrows in a speech on the role of municipal networks at the Cable Show Industry conference in Los Angeles. In this latest post, he notes that Chattanooga's network transformed it from "a city famous for its choo-choos," into the "Gig City." The network spurs economic development, improves access, and inspires innovation, notes our FCC Chairman.

The National Journal also takes note of the FCC blog post. Its article points out that Wheeler criticizes Tennessee's state law restricting Chattanooga's ability to expand. Even though nearby communities want service from EPB, the City is forbidden from serving them. Not acceptable, says Wheeler.

While the National Journal suggests Tennessee may be the first state to face FCC authority to eliminate state barriers, policy experts have no expectations yet. From the article:

Harold Feld, the senior vice president of consumer advocacy group Public Knowledge, said Wheeler will probably not launch a broad initiative to attack state laws around the country. Instead, the FCC chief will probably wait for groups or individuals to file complaints about specific state laws, Feld predicted.

Chairman Wheeler's sentiments comport with the growing movement to support local authority for infrastructure investment. In addition to communities expressing their desire to decide for themselves, the Coalition for Local Internet Choice (CLIC) has just announced its formation. The group brings together policy leaders, including ILSR's Chris Mitchell, to defend the proposition that decisions over whether to invest in a community network should be made at the local level.

We encourage you to join CLIC through the CLIC website. You can also follow localnetchoice on Twitter. In addition to getting the latest updates on CLIC's activities and research, you can share your support for local Internet self-reliance.

To learn more about the many benefits EPB Fiber bring to Chattanooga, read our case study. The report provides a detailed account of how the community deployed the network and offers some hard data on the many ways it saves public dollars, drives economic development, and improves access. Also take a few minutes to listen to episode #59, our discussion with EPB Fiber's Danna Bailey.

Wheeler's closing is unambiguous:

Removing restrictions on community broadband can expand high-speed Internet access in underserved areas, spurring economic growth and improvements in government services, while enhancing competition. Giving the citizens of Chattanooga and leaders like Mayor Berke the power to make these decisions for themselves is not only the right thing to do; it’s the smart thing to do.

"Localism Over Consolidation" Discussion Streaming from New America Foundation

If you missed Chris in D.C. at the New America Foundation on May 28th, you can still catch the action via the archived presentation.

Chris joined Joanne Hovis, Will Aycock, and Catharine Rice to discuss "Localism Over Consolidation: An Exploration of Public Broadband Options." New America Foundation writes:

Today, more and more communities are thinking of broadband as a local issue. Even large cities like Baltimore, Seattle and New York have recently begun public discussions about ways to improve broadband services and what role the local government could play in that improvement. Current technology policy debates about net neutrality and the potential Comcast-Time Warner Cable merger mean it is more important than ever that local governments play a more active role in ensuring their communities do not get left behind in the digital age.

New America’s Open Technology Institute presented a discussion of various approaches to local investment in broadband. The panel featured a diverse set of experts on public broadband networks and projects, including the manager of a municipal fiber network in Wilson, NC. Panelists discussed different approaches communities have taken so far and share thoughts on what steps other local governments can take going forward to support access to affordable and high-speed broadband.

The discussion runs just under 90 minutes.

Video: 
See video

You Are Cordially Invited: June 17th Discussion on Cable Companies, Monopolies, and Community Networks

On Tuesday June 17th, Chris will be participating in a conversation hosted by the Media Consortium as part of its Media Policy Reporting and Education Program (MPREP). You are invited to sit in on what is sure to be a spirited discussion on community networks and the lack of competition in the cable industry.

What: Community Fiber Networks: A Realistic Solution to Cable Monopoly?

When: Tuesday, June 17, 3pm ET/ 12 PT

Who: Joining Chris will be:

Ryan Radia, Associate Director for Technology Studies at the Competitive Enterprise Institute. He is critical of government-run or regulated projects in general, and specifically critical of community networks. 

Wayne Pyle, City Manager and CEO of West Valley City, Utah's second largest municipality, and also  chair of the board of UTOPIA, the Utah Telecommunications Open Infrastructure Agency, a community network serving 11 cities.

This is the first of several monthly briefings hosted by MPREP to discuss media policy issues. Everyone is welcome to participate. Register online for this discussion.

Illinois' Monticello Local Partnership Leads to Big Savings - Community Broadband Bits Episode 102

Following up on Lisa's in-depth story on Monticello, Illinois, we asked Vic Zimmerman to join us for episode 102 of the Community Broadband Bits.

We talk about how rural Monticello started by reaching out to the existing service providers, only to be stalled for months and then years. Eventually they realized they would have to take a stronger hand in making sure community anchor institutions, including the schools, would have the fast, affordable, and reliable connections they need.

Local public entities began working together and partnered with a private firm building a fiber line through town to get in the trench with them. That was the beginning of an impressive network that now connects community anchors and ideally will lead to more investment for connections to businesses and residents.

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 15 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

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

Thanks to Valley Lodge for the music, licensed using Creative Commons. The song is "Sweet Elizabeth."

Announcing the Coalition for Local Internet Choice!

We are excited to announce a new effort to restore and preserve local decision-making authority when it comes to public private partnerships and Internet infrastructure investment.

The Coalition for Local Internet Choice, CLIC, will work to ensure communities can make these decisions for themselves. Mission statement:

The Coalition for Local Internet Choice – CLIC – represents a wide range of public and private interests who support the authority of local communities to make the broadband Internet choices that are essential for economic competitiveness, democratic discourse, and quality of life in the 21st century.

I'm excited to be a part of this effort as a senior advisor working with Jim Baller, Joanne Hovis, and Catharine Rice. We are asking people to join the coalition via the CLIC page (right hand column toward bottom). Members agree to the following principles. Follow localnetchoice on Twitter.

The Internet Is Essential 21st Century Infrastructure: Modern broadband Internet networks are essential infrastructure in the 21st century economy. Access to modern broadband infrastructure is vital in ensuring that all communities – rural, tribal, and urban – can access opportunity and participate fully in community life.

Local Communities Are the Lifeblood of America: America is built on its great communities. Towns, counties, and cities are where economic activity and civic engagement live — and communities recognize modern broadband Internet infrastructure as essential to enable such economic and democratic activity.

Communities Must Be Able to Make Their Own Choices: Local choice enables local self-reliance and accountability. Local choice enables local innovation, investment, and competition. Local communities, through their elected officials, must have the right and opportunity to choose for themselves the best broadband Internet infrastructure for their businesses, institutions, and residents. Federal broadband policies must prioritize local choice and provide local communities full, unhindered authority to choose their own broadband future.

More updates to follow - but please sign up if you agree. Also, spread the word! We are excited to have individuals, companies, trade groups, local governments, utilities, and others join our effort.

UC2B and Partner Bringing Fiber to More Urbana-Champaign Communities in Illinois

The UC2B Network and its partner, iTV-3, will soon bring gigabit capabilities to more people in the Champaign-Urbana community in Illinois. According to the UC2B press release [PDF], iTV-3 will expand existing fiber to areas of the community to serve residents and businesses. iTV-3 will take subscriptions for commercial and residential access online at www.theperfectupgrade.com.

In a statement from the FCC, Chairman Tom Wheeler commented:

"Congratulations to Urbana-Champaign Big Broadband (UC2B) and iTV-3 on making gigabit services over fiber available throughout the community. This public-private partnership provides a valuable model for communities and companies throughout the country and a demonstration of the creativity that is stimulated when localities are free to work with the private sector to improve broadband offerings.”

UC2B and the University of Illinois at Urbana-Champaign received American Recovery and Reinvestment Act (ARRA) funds to deploy an urban FTTH network in Illinois. The not-for-profit corporation offered economical Internet service to residential subscribers in economically disadvantaged areas, some as low as $19.99 per month. The network also connected a number of community anchor institutions including schools, hospitals, and municipal facilities throughout the Urbana-Champaign metropolitan area.

According to a fact sheet on the project [PDF], the company is a subsidiary of a family-owned business that started in Springfield, Illinois. iTV-3 has been an ISP since the mid 1990s but also owns and operates over 775 Family Video stores in 19 states and Canada. UC2B chose iTV-3 because the company operates in a manner consistent with the Community Broadband Principles, core values guiding UC2B since inception. iTV-3 will also contribute to UC2B's Community Benefit Fund, established to improve digital literacy and digital inclusion. 

iTV-3 will offer wholesale access via the existing structure and, if neighborhoods do a not connect after five years, other companies will have the opportunity to offer services via the infrastructure. iTV-3 will lease the existing infrastructure and equipment from UC2B and will own any infrastructure it builds as part of the network. If the two part ways in the future, UC2B will have the option to purchase the infrastructure deployed by iTV-3.

iTV-3 has offered services in other Illinois communities since 2009. According to the iTV-3 press release [PDF], the ISP will be bringing services into neighborhoods of 150 - 350 homes once 50% of homes sign-up. iTV-3 will begin by offering Internet and voice and plans to add video in the future.

Service rates will be:

  • 50/10 Mbps Internet - $49.95
  • 50/10 Mbps Internet + Unlimited US and Canada Voice - $64.90
  • 100/20 Mbps Internet - $59.95
  • 100/20 Mbps Internet + Unlimited US and Canada Voice - $74.90
  • 1000/200 Mbps Internet - $79.95
  • 1000/200 Mbps Internet + Unlimited US and Canada Voice - $94.90

For more on the UC2B project, listen to Chris' interview with Brandon Bowersox-Johnson from the network's policy committee and Carol Ammons of the U-C Independent Media Center. He spoke to them in episode 42 of the Community Broadband Bits podcast.

Common Carriage Definition - Barry Lynn

As I was glancing back through my notes in the margins of my copy of Barry Lynn's Cornered: The New Monopoly Capitalism and The Economics of Destruction, I stumbled across the beginning of a discussion of common carriage. Good timing given the FCC wrestling with whether to apply common carrier regulations on Internet access.

Which brings us to a set of laws that are closely related to price discrimination: our common carriage laws. These hold that certain businesses--especially those with a real or a de facto license to provide a vital service to the general public--must be kept open to all potential customers on a fair basis. The provider of the service cannot discriminate among users, either by denying service to some and not to others or by charging different people different prices. The ancient Romans applied the concept to inns and ships. The English applied it to cabs, ferries, toll roads, mills, bakeries, surgery, tailoring, and breweries. In the United States, in the nineteenth century, we extended it to steamboats, telegraphy, and eventually railroads.