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Lafayette Congratulates Wilson; Offers Support After FCC Ruling

When the FCC announced its intention last week to neutralize the negative impacts of Tennessee and North Carolina anti-muni laws, celebrating reached far beyond Chattanooga and Wilson. In Lafayette, home to LUS Fiber, City-Parish President Joey Durel took time to write a supportive letter to Wilson's Mayor Bruce Rose.

We reproduce the text of that letter below. As Durel points out, the two communities have strong similarities and the victory in Wilson has also reached Lafayette. Durel notes that a community's decision to better its connectivity should always be a local choice, that partisanship is not a natural part of the equation, and he encouraged Rose to "stay strong."

Dear Mayor Rose:

As Mayor of Lafayette, LA, a city that proudly provides electric and communications services to our businesses and residents, I want to congratulate you, your colleagues, and your constituents on your achievement in delivering world-class Internet services to the residents and businesses of Wilson - and on the strong endorsement you received last week from the Federal Communications Commission.

As in Wilson, the Lafayette community has been united in our support for high-capacity broadband connectivity to the Internet as an essential tool of economic development and as a means of securing our community's economic future. While some will use any means possible to distract you from achieving your goals for your community, our deeply conservative electorate has consistently supported our electric utility's great achievement in building a future-proof broadband Internet infrastructure, and this support has been consistently bi-partisan. My Democrat colleagues have joined me and my fellow Republicans in insisting that we in Lafayette should have the right to choose our broadband Internet future. We here in Lafayette will determine how our community engages this essential economic development tool, and we will not have our economic future dictated to us by others.

As you in Wilson have, we have seen the increased politicization of the local Internet choice issue in Washington, and we regret that it has. At the local level, in our community, this is not a partisan issue and we have resisted letting it become one. Like you, we do not believe this issue is about politics or partisanship or electoral politics or the public versus the private sector. Rather, it is about strengthening America, local self-reliance and the opportunity of our citizens to live in a community with all the same opportunities - for jobs, education, health care, public safety, and much more. Wilson, like Lafayette, has built a network that ensures that your community will be second to none in these respects. Congratulations to you for taking this important step, you are obviously interested in doing the right thing for your citizens, so stay strong. And, please feel free to contact me anytime, I've been in your shoes.

Sincerely,

L.J. "Joey" Durel, Jr.

City-Parish President

Lafayette Consolidated Government

Blackburn and Tillis Introduce Bill Aimed to Undo FCC Decision to Restore Local Authority

Last week, the FCC made history when it chose to restore local telecommunications authority by nullifying state barriers in Tennessee and North Carolina. Waiting in the wings were Rep. Marsha Blackburn and Senator Thom Tillis from Tennessee and North Carolina respectively, with their legislation to cut off the FCC at the knees. [A PDF of the draft legislation is available online.]

Readers will remember Blackburn from last year. She introduced a similar measure in the form of an amendment to an appropriations bill. Blackburn has repeatedly attributed her attempts to block local authority to her mission to preserve the rights of states. A Broadcasting and Cable article quoted her:

“The FCC’s decision to grant the petitions of Chattanooga, Tennessee and Wilson, North Carolina is a troubling power grab,” Blackburn said. “States are sovereign entities that have Constitutional rights, which should be respected rather than trampled upon. They know best how to manage their limited taxpayer dollars and financial ventures."

Thom Tillis, the other half of this Dystopian Duo, released a statement just hours after the FCC decision:

“Representative Blackburn and I recognize the need for Congress to step in and take action to keep unelected bureaucrats from acting contrary to the expressed will of the American people through their state legislatures.”

Considering that networks in Chattanooga and Wilson are incredibly popular and an increasing number of communities across the country are approving municipal network initatives through the ballot, it is obvious that Tillis is rather confused about the expressed will of the American people. He needs to sign up for our once weekly newsletter!

No doubt the decision will be tied up in court proceedings for some time to come as state lawmakers attempt to control what municipalities do with their own connectivity decisions.

In keeping with the drama of the recent days, I have to say, "The lady doth protest too much, methinks." If Blackburn and Tillis are so convinced the FCC is overstepping, why not let the matter be decided in the courts? They know the law is not on their side, that's why.

We encourage you to contact your elected officials, and let them know that you think about the Blackburn/Tillis bill: "that dog won't hunt," in the words of Chairman Wheeler. The victory of February 26th was a significant first step in a long road to ensuring fast, affordable, reliable Internet for every one. Let's keep the momentum rolling.

Jim Baller is the Senior Principal of Baller Herbst Stokes & Lide, the lead counsel to Wilson and the Chattanooga EPB. You can read Jim's full statement at the firm's website:

“This is an important moment for communities in North Carolina, Tennessee, and other states that have barriers to local investments in advanced communications networks,” said Jim Baller, senior principal of Baller Herbst Stokes & Lide. “Not only has the Commission confirmed that it has authority to remove such barriers, but it has also compiled a massive record documenting the critical role that local Internet choice can play in fostering strong, vibrant communities and in ensuring that the United States will remain a leading nation in the emerging knowledge-based global economy.”

Cable Companies Lose Big at FCC, Barriers to Community Broadband Struck Down

For Immediate Release: February 26, 2015

Contact: Christina DiPasquale, 202.716.1953, Christina@fitzgibbonmedia.com

BREAKING: Cable Companies Lose Big at FCC, Barriers to Community Broadband Struck Down

Two southern cities today persuaded the Federal Communications Commission to recognize their right to build their own publicly owned Internet networks where existing providers had refused to invest in modern connections. The 3-2 FCC vote removes barriers for municipal networks in Chattanooga, Tennessee and Wilson, North Carolina, to extend their high-quality Internet service to nearby areas.  

Said Christopher Mitchell, Director of Community Broadband Networks at the Institute for Local Self-Reliance:

“Cable companies lost their bet that millions spent on lobbying to stifle competition was a wiser investment than extending high-quality Internet to our nation’s entrepreneurs, students and rural families. 

“Preventing big Internet Service Providers from unfairly discriminating against content online is a victory, but allowing communities to be the owners and stewards of their own broadband networks is a watershed moment that will serve as a check against the worst abuses of the cable monopoly for decades to come.”

The FCC decision sets an historic precedent for towns working to offer municipal broadband networks in twenty states that have enacted limits or bans on local governments building, owning, or even partnering to give local businesses and residents a choice in high speed Internet access. Three-quarters of Americans currently have either no broadband or no choice of their Internet provider. 

Christopher Mitchell, the Director of Community Broadband Networks at the Institute for Local Self-Reliance, has traveled to over 20 states and spoken with over 100 community groups looking to provide high-quality Internet for their residents. He has also advised members of the FCC on related telecommunications issues in the lead-up to the decision.

For interviews around the FCC decision, please contact Christina DiPasquale at 202.716.1953 or at christina@fitzgibbonmedia.com. To view a map tracking local government investments in wired telecommunications networks and state laws that discourage such approaches, please visit: http://www.muninetworks.org/communitymap.

Municipal broadband networks (munis):

  • Create thousands of new private sector jobsA collaborative muni effort in Georgia between five towns, is credited with bringing over 6,000 new jobs to the region by building and sustaining their network. The muni in Springfield, MO convinced online travel company Expedia to move to the town and has 900 local jobs because their network allowed the company to stay and expand.
  • Protect consumers by offering competitive pricing. During the period of 2007-08, Time Warner Cable increased rates up to 40 percent in some of the areas in Raleigh, NC, while not increasing rates in nearby Wilson—which has a strong muni. Chattanooga’s muni grew from a basic connection of 15 Mbps, when it was first founded, to 100 Mbps today–without raising prices once. The slowest connection available in Chattanooga from the utility is 10 times faster than the average American connection.
  • Provide higher speed Internet that allows for increased business activity. The largest employers in Wilson, NC rely on the municipal broadband network for their transactions. The muni in Springfield, MO, attracted John Deere Remanufactured and the McLane Company to the area. 
  • Do not rely on taxpayer financing, like large private telephone companies. Most municipal networks are financed through methods that do not involve raising taxes: revenue bonds, interdepartmental loans and savings created by ending expensive leased services. Dakota County in MN has saved $10 million over 10-15 years by building their own network and ending leases. Over $2 million in revenues from the Thomasville, GA network contributed to the town’s ability to eliminate its local fire tax.
  • Receive broad support from voters, regardless of party affiliation. Roughly 3 out of 4 cities with citywide munis reliably vote Republican and polling shows that 2 out of 3 Republicans, Independents, and Democrats prefer that decisions about how to best expand their Internet access be made by local governments.
  • Foster the strength of local businesses. Politically conservative communities in Chanute, KS, and Lafayette, LA, have munis that are working on the deployment of fiber networks to encourage economic development by allowing businesses to market themselves and compete online in the global marketplace. Lafayette has added over 1,000 tech jobs in 2014 alone.
  • Expand educational opportunities. The muni in Longmont, CO, is now providing 10 times the bandwidth that their school district previously received from a private provider at an annual savings of $100,000. Munis in Carroll County, MD, and Chanute, KS, have both allowed schools they service to offer new distance learning classes in multiple locations via video streaming. The city of Rockport, ME, partnered with a nonprofit college to bring students upload speeds 200 times faster than Time Warner Cable’s package for the area.

38 Next Century Cities Leaders Sign Letter to FCC Supporting Local Authority

President Obama suggested restoring local telecommunications authority while visiting Cedar Falls in January and a number of local elected officials were ready to back him up. Leaders from 38 members of Next Century Cities recently submitted a public letter to the FCC urging commissioners to consider local autonomy as they consider the Chattanooga and Wilson, North Carolina, petitions.

Last summer, both communities filed with the FCC seeking relief from restrictive state laws that prevent their broadband utilities from serving surrounding communities. FCC Chairman Wheeler has spoken in support of local authority more than once. Next Century Cities, a coalition of communities that was formed specifically to advance better connectivity, writes:

We write only to urge that, as you consider these petitions, you take proper account of the importance of local choice and autonomy. The benefits of high-quality broadband are now beyond dispute: these projects have stimulated local innovation and economic development, enhanced education, improved government services, and opened new worlds of opportunity to communities and citizens. It is our hope that federal policy will support the realization of these outcomes in our communities and in towns and cities across the country, by empowering every community to meet the needs of their residents.

You can read the full letter [PDF] online to see if your elected officials signed on.

The FCC's decision on the petitions is expected in February.

Supporters Rally Behind Wheeler, Chattanooga, and Wilson: "I Recommend Approval"

FCC Chairman Tom Wheeler released a statement yesterday supporting the concept of local authority for community broadband infrastructure. Chattanooga and Wilson filed petitions to scale back state restrictions last summer. In his statement, Wheeler officially recommended the Commission approve the petitions. If approved, the petitions have the potential to liberate local communities from state restrictions. 

Along with a number of other organizations that advocate local authority, the Institute for Local Self-Reliance supports Chairman Wheeler who said:

Communities across the nation know that access to robust broadband is key to their economic future – and the future of their citizens. Many communities have found that existing private-sector broadband deployment or investment fails to meet their needs. They should be able to make their own decisions about building the networks they need to thrive. After looking carefully at petitions by two community broadband providers asking the FCC to pre-empt provisions of state laws preventing expansion of their very successful networks, I recommend approval by the Commission so that these two forward-thinking cities can serve the many citizens clamoring for a better broadband future.

Chris Mitchell, Director of the Community Broadband Networks Initiative at ILSR.org and the editor of MuniNetworks.org said:

The Chairman's statement is a breath of fresh air. This approach will allow communities with little or no choice in providers to take control of their own connectivity. When local communities have the authority to invest in publicly owned infrastrucuture without state barriers, more businesses and residents have fast, affordable, reliable Internet access. Even just the possibility of a community network can incent large scale providers to improve their services. We are pleased to see Chairman Wheeler both talk the talk and walk the walk of restoring local decision-making authority.

A statement of support quickly followed from the Georgia Municipal Association:

Prohibiting government from providing this economic development infrastructure, or limiting its ability to do so, is counter to the wishes of the community and to the best interest of cities, states and our nation. 

Next Century Cities, the coalition of over 50 communities working to restore local Internet choice, recently delivered a letter [PDF] from 38 member cities to the FCC, urging the Commission to consider local autonomy. Deb Socia, the Executive Director, applauded the statement:

If we want truly next-generation broadband, then cities across the country need to be in the driver’s seat. That’s why they are looking to the FCC to uphold their ability to make the best choices for their communities and residents.

Public Knowledge wrote:

Every community should have the right to determine its broadband needs and the path of its digital future, including the ability to pick competition over monopoly for broadband services. Chairman Wheeler has taken an important first step by advancing these two petitions forward.

The Media Mobilizing Project, involved in efforts to improve connectivity in Philadelphia, stated that it strongly supports Chairman Wheeler's plan to restore local authority:

Philly, every city in PA, and every community nationwide deserves the right to explore high quality competition to our communications monopolies - to drive prices down, quality up, and access to everyone, poor and working people and beyond.  We look forward to Chairman Wheeler's continued leadership on this issue, and expanding options for our communities - who strongly believe that access to high quality communications is a human right.

From Common Cause:

"What a great step approval would be toward bringing broadband to every American,” agreed former FCC Commissioner Michael Copps, now serving as special adviser to Common Cause’s Media and Democracy Reform Initiative. “We built this country with federal and community partnerships for vital infrastructure, and what's more vital than broadband for the 21st century?  A big high-five to Chairman Tom Wheeler and the colleagues who have joined him to push this move.”

The Coalition for Local Internet Choice (CLIC) also passed a "big high-five" to the Chairman:

CLIC applauds Chairman Wheeler for his leadership and recognition that local communities play an integral role in ensuring broadband competition for their residents. This is a big step forward and just the beginning — we look forward to working with the Chairman, the rest of the Commission and other stakeholders to remove barriers to better broadband around the country.

For more on the Chattanooga and Wilson petitions, we encourage you to listen to episode #120 of the Community Broadband Bits podcast, in which we debunk a series of arguments against restoring local authority. 

Chris also had an informative interview with Harold Feld on section 706 in episode #84. In that interview, published well before the Chattanooga and Wilson petitions were filed, the Senior Vice President of Public Knowledge dissected how the DC Circuit Court came to the conclusion that paved the way for the petitions.

Good stuff!

Community-Based Broadband Solutions: The Benefits of Competition and Choice for Community Development and Highspeed Internet Access

Publication Date: 
January 13, 2015
Author(s): 
National Economic Council and Council of Economic Advisors

Affordable, reliable access to high speed broadband is critical to U.S. economic growth and competitiveness. Upgrading to higher-speed broadband lets consumers use the Internet in new ways, increases the productivity of American individuals and businesses, and drives innovation throughout the digital ecosystem. As this report describes, while the private sector has made investments to dramatically expand broadband access in the U.S., challenges still remain. Many markets remain unserved or underserved. Others do not benefit from the kind of competition that drives down costs and improves quality. To help fill the void, hundreds of towns and cities around the country have developed their own locally-owned networks. This report describes the benefits of higher-speed broadband access, the current challenges facing the market, and the benefits of competition – including competition from community broadband networks. - Executive Summary

On January 13, 2015, President Barak Obama visited Cedar Falls, Iowa, to discuss his administration's plans to bring better connectivity to American residents and businesses. The centerpiece of his strategy involved removing state barriers to municipal networks and promoting local authority.

In tandem with that speech, the White House released this report. The report includes significant research from the Institute for Local Self-Reliance, including community profiles, economic data, and the role if municipal networks in competition.

"Envisioning a Gigabit Future" Reminder and Livestream Info

Chattanooga is a destination of choice for gigabit seekers and advocates for local choice, especially on Tuesday, November 18th. Next Century Cities and the Southeast Tennessee Development District will convene a field hearing titled "Envisioning the Gigabit Future." If you are not able to attend, the event will be live streamed.

Register to stream the event at http://conta.cc/1yRvAjG.

As a reminder, the event will be at The Church on Main in downtown Chattanooga from 9 a.m. - 12:30 p.m. EST.

Speakers will include Mayors, elected officials, and a long list of other local leaders with firsthand experience in bringing high speed access to their communities. 

There is still time to register online to attend.

"Envisioning a Gigabit Future" on November 18th in Chattanooga

Next Century Cities and the Southeast Tennessee Development District will host an event on November 18th in Chattanooga entitled "Envisioning a Gigabit Future" at The Church on Main.

The field hearing runs from 9 a.m. to 1 p.m. EST. Participants will hear from panelists who will discuss how and why gigabit infrastructure is quickly becoming a critical component to local community vitality.

From the invitation:

Chattanooga is one of America's first - and leading - truly "gigabit" communities. Although the city's investment and commitment has yielded dividends for the city itself, this is not just an issue of local or parochial concern. The potential for gigabit and next-generation broadband to improve America's communities is a national question, with national implications. 

For example, Tennessee is one of about twenty states that restrict community broadband choice, prompting Chattanooga and Wilson, North Carolina (another such state), to petition the Federal Communications Commission to remove these restrictions so that Chattanooga and Wilson can expand their highly successful networks.

Speakers and panelists will include:

  • Mayor Andy Berke, Chattanooga, TN
  • Senator Janice Bowling, Tennessee State Senate (16th District)
  • Mayor Gary Davis, Bradley County, TN
  • Harold DePriest, President and CEO, EPB
  • Jonathan Taplin, Director, Annenberg Innovation Lab, University of Southern California
  • Tony Perez, Director of the Seattle Office of Cable Communications and President of the National Association of Telecommunications Officers and Advisors
  • Aldona Valicenti, Chief Information Officer, Lexington, KY
  • Rick Usher, Assistant City Manager, Kansas City, MO
  • Beth Jones, Executive Director, Southeast Tennessee Development District

You can register online for the free event.

Christopher Libertelli From Netflix Joins CLIC Board

The Coalition for Local Internet Choice (CLIC) has announced that Christopher Libertelli of Netflix has joined the Board of Advisors. Libertelli joins a group of policy leaders, including ILSR's Chris Mitchell, to advance the rights of local communities to have authority over their own broadband decisions.

From the CLIC announcement:

Mr. Libertelli has been Vice President of Global Public Policy at Netflix since December 2011. During his time at Netflix, he has been a champion for a variety of internet policy issues including efforts to increase competition among internet providers. Prior to joining Netflix, Mr. Libertelli managed Skype’s government relations programs in the U.S., Canada, and Latin America.

Netflix has been a strong and consistent supporter of local internet choice. 

Netflix has been very helpful in advocating for the right of communities to build their own networks if they so choose. They filed comments [pdf] in the Wilson and Chattanooga petitions and have been listing some of the larger municipal networks in their monthly speed rankings. We are very grateful for their assistance in these important matters.

Local Businesses Suffer in Tennessee as State Prevents Chattanooga Expansion

As our readers know, the FCC is currently considering petitions submitted by Chattanooga and Wilson, North Carolina. Both communities want the ability to expand their ability to offer advanced telecommunications services, contrary to existing state anti-muni laws. As we glance through the comments, we notice that ISPs, advocacy groups, and local governments are not the only commenters with a vested interest in the outcome. 

There are also compelling stories from individuals, local businesses, and organizations that are looking for better options. In some cases they have one provider but are unhappy with the service so support municipal network expansion. In other cases, they have dial-up (or no service at all) and are maddeningly close to an EPB or Greenlight connection but state restrictions forbid service to them.

We recently spoke with Joyce Coltrin, owner of J & J Nursery located on the edge of Cleveland, Tennessee, in Bradley County. She is about 32 miles from the heart of Chattanooga but only 3/8 mile from the edge of the EPB fiber optic service area. Her only choice for Internet at her nursery is AT&T dial-up. Joyce tells us:

"I could walk right to it - it is the closest provider and we don't have any broadband access!"

Joyce submitted comments early in the proceedings. She choose to send her comments via snail mail because her email is so unreliable.

For the past 15 years, Joyce and other people in her community have requested better service from AT&T. They were told repeatedly it would be 3 months, 6 months, 9 months until they would get upgrades but it never happened. They finally decided to look for connectivity elsewhere. Joyce and her neighbors approached their electric provider, Volunteer Energy Cooperative, in the hopes that they could work with EPB to bring services to the area. Volunteer and EPB had already discussed the possibility, but when the state law was passed that prevented EPB from expanding, the efforts to collaborate cooled.

Joyce uses her cell phone to access the Internet while she is at work. Like some of the other business owners in Cleveland, Joyce pays $200 - $300 per month because she is constantly running over data caps to conduct business. There are others who live or work in areas near her that do not have cell phone coverage.

Another local business owner that runs a poultry business almost lost a large number of chicks when their alarm system, dependent on wireless Internet access through a Verizon "MiFi" personal hotspot, failed during cold weather.

Joyce does not plan on expanding to an online store but she finds it difficult to adhere to state business regulations without better connectivity. For instance, she must do business taxes online from home, where she has a little better Internet access.

She knows that Tennessee's anti-muni laws came from giant cable and telco lobbying efforts. She also recognizes the negative impact it is having on Cleveland. In her comments to the FCC, Joyce writes:

College students drive to McDonald's to use Wi-Fi and work from their cars to do homework and projects. This situation is choking business and making our children third class citizens.

I have always been for free enterprise, but when some businesses win due to unfair protection, free enterprise dies.

To read the rest of Joyce's comments, visit the FCC website.