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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

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.

Correcting Community Fiber Fallacies: The Reality of Lafayette's Gigabit Network

Publication Date: 
October 13, 2014
Author(s): 
Christopher Mitchell

In just the last year the Lafayette Utility System (LUS) gigabit network has attracted 1,300 high-tech jobs. Chairman Wheeler praised the network for doing what many communities hope to do, but cannot because of state laws limiting municipal broadband networks. Critics are desperate to discredit the network, using false statements and misinformation.

The Reason Foundation released a paper by Steven Titch in November, 2013, to discredit LUS Fiber. Here we offer a point-by-point rebuttal of the report. Titch makes numerous claims that he does not support with any evidence. Much of the evidence he uses in support of other claims is out of context or erroneous. And even then, his worst criticism is that the network may struggle in the future but is not currently failing.

Our critical response to the Reason Foundation's report should be helpful to any community considering its own municipal network investment. This document includes common arguments and responses both for and against such networks.

Download or read the full report at ILSR.org.

Community Broadband Media Roundup - November 30, 2014

This week in community broadband, more communities are adding broadband to the list of essential utilities, and many of them are turning to Chattanooga as a model “gig city.”

As Times Free Press’s Dave Flessner reports, the great thing about Chattanooga's approach is that it’s not just about Internet. In fact, the broadband boom is really an unintended benefit of the city’s cutting edge smart grid, which keeps the city’s lights on and powers the economy as well. 

"What we're going to try to do is bring some of the brilliant people from Warner Bros., Fox, Disney and IBM down here to Chattanooga to help them get their heads wrapped around this notion that you've got to stop worrying about scarcity," [Annenberg Innovation Lab director Jonathan] Taplan said.

Last year, T-Bone Burnett, a Grammy Award winner, performed "The Wild Side of Life" from a Los Angeles studio with Chuck Mead, a founder of the band BR549 who was on stage in Chattanooga.

"They sang a song together over 2,000 miles apart," Taplin said. "That's the power of gigabit Internet. I think we're just beginning to think of the possibilities of what this thing can do."

And Android Authority’s William Neilson Jr. explores the desire for faster connections and more choices.

“Isn’t it amazing how much faster broadband speeds are in parts of the country where there are a number of broadband options available to residents? How many times am I going to write an article detailing a broadband provider telling a city that they don’t need “fast” speeds even though the city is universally angry at their lack of broadband options?”

Of course, we see the product of how increased competition brings better service even more clearly in communities that have municipal networks, not just in Google's Kansas City network. It is an outcome that all communities can achieve if they regain the authority to do so. 

In the beginning, Lafayette, Louisiana created its own utility system. And it was good. Steve Stackhouse Kaelble goes back to the very beginning of municipalization of utilities in his research on public power this week:

Lafayette is just one community, but it provides a great illustration of the forward-thinking mindset that led many American municipalities into the utility business. In some cases, local leaders got a glimpse of the future and worked to bring it to their communities ahead of the curve. In other cases, they found that the profit-driven business model that works so well in much of the American economy had left them behind when it comes to certain kinds of services.

The fruits of these local efforts are America’s public power communities — places where local governments and other public entities have taken charge to deliver services their communities need to prosper.

Syracuse Mayor Stephanie Miner is making her list and hoping for smarter sensors this Christmas. On Miner’s wish list: municipal broadband, and other essential smart grid infrastructure projects. The mayor requested close to a billion dollars in grant money from Gov. Cuomo for economic development in greater New York. It’s unclear if Syracuse is high enough on Cuomo’s list: 

Reality check: … [Miner is] well aware it's not terribly compelling to spend hundreds of millions of dollars on stuff you can't see. It's an "eat-your-peas'' approach that aligns with Miner's view of the role of government, versus the "shiny toys'' approach favored by Cuomo and the Buffalo Billion… Whether by accident or design, the mayor's plan leaves us wanting more. Think of it as an opening bid. Who's willing to push her vision farther?

And while all of these cities are moving forward with community broadband efforts of some kind, Jason Meyers with Light Reading spoke with the city’s Chief Technology Officer, Mike Mattmiller and noted that despite Seattle’s reputation as a tech leader, it is lagging in the gigabit connecitivity. Mattmiller suggests that a public-private partnership is still desired, depending on how a new study turns out.

Bozeman, Montana residents are urging leaders to help drive down prices and improve Internet speeds this week. Kenneth Silvestri voiced his opinion in the Bozeman Chronicle.

We could continue to be beholden to the monopoly imposed by the telecommunications companies, or we can invest in our future by laying the groundwork for a technology infrastructure that serves the community and expands access.

Sahara Devi seconded that sentiment in Bozeman, and we hope you will do the same in your own communities. When lawmakers on both sides of the isle hear your views on competition, local authority, and economic development, it is hard to back down from taking steps to increase local choices and better connectivity. 

Wi-fi

New York City and Seattle are both looking into wi-fi neighborhoods, with varying success. Last week a Seattle councilwoman announced her backing of Wi-Fi in tent cities, which would help serve the city’s homeless population. This week, T.C. Scottek with The Verge dug in to NYC’s effort to connect parts of the city with Wi-Fi.

One of the biggest problems is that LinkNYC will be funded by advertising, and as the Daily News correctly points out, the poorest neighborhoods in the city aren't worth as much to advertisers as tourist-packed Times Square. That's a reality that makes sense for profit-seeking businesses to build around, but not so much for public-facing utilities that ought to provide reasonably equal levels of service to everyone.

And “Mat Catastrophe” with Charleston City Paper lamented his city’s decision to let Comcast supply the bandwidth for the city’s new Wi-Fi-in-the-parks initiative. It seems Catastrophe is concerned that Comcast may not have the city’s residents real Internet interests at heart. 

… if you're hanging out in one of Charleston's lovely parks and you have a burning desire to do whatever it is you want with a free internet connection, by all means do so. But just don't believe for one second that it really makes the city more livable for any more than a small fraction of Holy City residents. And never forget that it's just another way that public money is siphoned into private hands.

If you want the City of Charleston to really make a name for itself, then you should support the idea of repealing the state law against municipal broadband providers and advocate for whichever mayoral and city council candidates are willing to take up that fight and move Charleston in the right direction in the 21st Century.

Corporate Monopolies and Mergers

Verizon claims it would *not* to sue the FCC to block net neutrality rules. But only if the commission promises it will not reclassify broadband providers as utilities. More and more citizens are making the connection between corporate monopolies and our poor broadband choices. Activists rallied in Brooklyn this week. Jay Cassano reported about the social justice argument for Waging Non-Violence.

Most concretely, the merger could result in higher prices for broadband Internet service, which would hit those who are economically disadvantaged the hardest.

'The merger could really negatively affect people who already have trouble accessing the Internet right now,” said Kevin Huang, campaign manager at Fight for the Future. 'When it comes to cable and Internet, the cost of service is crucial. It’s incredibly important for marginalized communities to participate in the 21st century ecology, but the prices for reliable Internet services have been going up.'”

Vidalia Moves Ahead With New Technology Center, Big Pipe Across the Mississippi

When we last checked in with Vidalia, the Louisiana town of 4,300 had implemented free Wi-Fi in its new municipal complex. In October, the community began constructing the Vidalia Technology Center (VTC), as reported by MyArkLaMiss.com

The VTC will be at the site of former city hall office. The new facility will serve as entrepreneur incubation space in addition to housing infrastructure for the city's future fiber network. With Senator Mary Landrieu's help, Vidalia secured a $1.2 million grant from the U.S. Economic Development Administration to build the VTC. The City is providing 35% matching funds.

The current key to better connectivity in Vidalia is a connection across the Mississippi River. The Natchez Democrat reports that the City obtained a permit to run a fiber backbone across the U.S. 84 Mississippi River bridge. Apparently, the Mississippi Department of Transportation (MDOT) does not normally allow the installation of utilities on bridges it controls. 

The City has been working on obtaining permission for almost two years. Another Natchez Democrat article reports:

According to minutes from the Mississippi Transportation’s Oct. 28 meeting, “the … rules require the city to provide justification of a hardship in writing and explain why alternative routes are not viable, which the City of Vidalia has done."

A connection across the Mississippi has been a significant obstacle for Vidalia as it planned its municipal network. While connecting facilities within the community may not have been a problem, without a connection to the outside world, the municipal network was not nearly as valuable.

Community leaders plan to eventually bring gigabit fiber service to every premise in Vidalia, a place where reliable connectivity for residents, businesses, and anchor institutions is lacking. The network will also encompass smart-grid technology. They also see the critical nature of economic development possibilities. From the MyArkLaMiss.com story:

The mayor says the center is necessary to bring modern technology, as well as more business and more industry to Vidalia.

Mayor Copeland says they were losing young entrepreneurs who couldn't operate their businesses without the right connectivity.

"Young entrepreneurs now can come to Vidalia and connect to the world  with the high speed internet system that we're going to have in Vidalia," he said.

...

"We will be able to tell the industries coming to Vidalia, we will be able to furnish you and connect you to the world," he said.

You can watch the MyArkLaMiss.com story here:

Correcting Community Fiber Fallacies: Attacks on LUS Fiber

In just the last year the Lafayette Utility System (LUS) gigabit network has attracted 1300 high-tech jobsChairman Wheeler praises the network for doing what many communities hope to do, but cannot because of state laws limiting municipal broadband networks. Critics are desperate to discredit the network, using false statements and misinformation.

The Reason Foundation released a paper by Steven Titch in November, 2013, to discredit LUS Fiber. Here we offer a point-by-point rebuttal of the report. Titch makes numerous claims that he does not support with any evidence. Much of the evidence he uses in support of other claims is out of context or erroneous. And even then, his worst criticism is that the network may struggle in the future but is not currently failing.

Our critical response to Reason Foundation's report (called Lessons in Municipal Broadband from Lafayette, Louisiana) should be helpful to any community considering its own municipal network investment. This document is the first in a series of critical works that we are calling the "Correcting Community Fiber Fallacies" series.

The official page for Correcting Community Fiber Fallacies: LUS Fiber is here, but you can get the pdf directly if you prefer.

Don't forget that you can sign up for our weekly newsletter here - so you won't miss these important stories.

Community Broadband Networks is committed to helping policy makers understand the reality and challenges of community fiber. Correcting Community Fiber Fallacies (CCFF) is designed to correct myths surrounding municipal fiber, and provide the information needed to counter erroneous claims.

Steven Titch's original report can be found at reason.org.

Wheeler Praises Lafayette's Network Deployment at NATOA Conference

At the 2014 Annual Conference of the National Association of Telecommunications Officers and Advisors (NATOA), FCC Chairman Tom Wheeler praised Lafayette, Louisiana, home of muni LUS Fiber, during his keynote address. 

Wheeler addressed a variety of issues, including wireless broadband, the drive to increase competition, and a thoughtful transition to IP based 911 service.

While he did not address the pending petitions from Wilson, North Carolina and Chattanooga, Wheeler did express his admiration for LUS Fiber and the tough persistence of the local community:

However, I do encourage you to consider how local choice and competition can increase the broadband opportunities for your citizens. I love the story of Lafayette, Louisiana where the local incumbent fought the city’s fiber network tooth and nail, bringing multiple court challenges and triggering a local referendum on the project. Thankfully, none of the challenges managed to prevent deployment – sixty two percent of voters approved of the network in the referendum, and the Louisiana Supreme Court unanimously sided with the city – but they did delay deployment almost three years. When the network was finally built, the community experienced the benefits of competition, as the local cable operator decided to upgrade its network. Local choice and competition are about as American as you can get.

We were pleased to hear the Chairman acknowledge the spirit of the community and how their efforts have paid off. Just this year, the community and its network attracted three new companies and approximately 1,300 new permanent and seasonal jobs. Lafayette has focused on improving its tech workforce in order to complement its next generation network - two critical ingredients to creating the Silicon Bayou.

Read more about Lafayette and LUS Fiber in our report, Broadband At the Speed of Light: How Three Communities Built Next Generation Networks.

For the entire text of Chairman Wheeler's key note address, check out the transcript PDF online. You can also read more about the NATOA Annual Conference, held this year in St. Paul, Minnesota's Lowertown. 

Louisiana Municipal Association Passes Resolution in Favor of Restoring Local Authority

The Louisiana Municipal Association is the latest organization to officially support the FCC's ability to restore local authority. The group represents 305 village, town, city, and parish members. Their Executive Board unanimously passed the resolution on July 30 and recently shared it with the FCC:

WHEREAS, the universal availability of affordable high speed Internet access for all citizens has been identified as a national priority; and

WHEREAS, community/municipal broadband networks provide an option for market competition, consumer choice, economic development, and universal, affordable Internet access; and

WHEREAS, historically, local governments have ensured access to essential services by banding together to provide those services that were not offered by the private sector at a reasonable and competitive cost. This involvement has included electrification, public libraries, and other important services; and

WHEREAS, local government leaders recognize that their economic health and survival depend on connecting their communities, and they understand that it takes both private and public investment to achieve this goal; and

WHEREAS, attempts have been made at the state level to limit or stop further local government deployment of municipal Internet services through legislation, which has the potential of reducing the ability of local government to provide important information and services to their citizens in a timely, efficient, and cost effective manner; and

WHEREAS, local governments, being closest to the people are the most accountable level of government and will be held responsible for any decisions they make; and

WHEREAS, the DC Circuit Court has determined that Section 706 of the Federal Telecommunications Act of 1996 unambiguously grants authority to the Federal Communications Commission (FCC) to remove barriers that deter network infrastructure investment;

NOW, THEREFORE, BE IT RESOLVED that the Executive Board of the Louisiana Municipal Association convened at its regular business meeting on July 30, 2014 does hereby unanimously support FCC efforts to ensure local governments are able to invest in essential Internet infrastructure, if they so choose, without state-imposed barriers to discourage such an approach.

In the LMA letter to Chairman Wheeler, Executive Director Ronnie C. Harris wrote:

Communities of every size across the State of Louisiana, as in other state in  our nation, are facing overwhelming problems within this arena as they strive to bring advances in technology to their rural areas to keep up with our rapidly changing world.

Even though Louisiana is one of the states that impose restrictions on local authority, LUS Fiber in Lafayette provides fast, reliable, affordable services to an adoring public. In addition to helping shrink the digital divide, the network contributes significantly to economic development in the area. Within the past year alone, three additional tech companies have been drawn to Lafayette, bringing significant job growth. 

Opponents of restoring local authority argue there are a number of reasons why tech companies have found Lafayette attractive. It is true that the community is well known for its rich culture, beautiful environment, and mild climate. Nevertheless, without LUS Fiber, those companies would be missing an integral tool for business.

If the FCC chooses to restore local authority in North Carolina and Tennessee under section 706 of the Telecommunications Act of 1996, perhaps other Louisiana communities will ultimately be able to benefit.

Read about LUS Fiber in our case study, Broadband At The Speed of Light: How Three Communities Built Next-Generation Networks. You can also hear Chris interview John St. Julian from Lafayette in Episode 19 of the Community Broadband Bits podcast. They have a revealing discussion about local efforts to invest in a municipal networks and struggles the community had to overcome to realize its vision.

Three New Companies Move to the Silicon Bayou

In the past few months, Lafayette has drawn in three high tech companies that will create approximately 1,300 well-paying positions. In addition to the community's commitment to boost its high-tech workforce, better connectivity offered by LUS Fiber helped attract the new businesses.

According to a Daily World article, the most recent addition is Perficient, Inc. The information technology and management consulting company is based in St. Louis. Perficient will add 50 new positions by the end of 2015 and another 245 over the next 6 years; average annual salary will be $60,000. The area should also see 248 additional indirect jobs. Perficient leadership intends to recruit from South Louisiana Community College and University of Louisiana at Lafayette.

This past spring, CGI announced it would employ 400 high-tech employees in a new finance facility in Lafayette. CGI will also recruit from the local high-tech educational programs. James Peake from CGI told the Advocate that the company has made an effort to keep tech positions "onshore" rather than sending them overseas. From the article:

CGI Vice President Dave Henderson cited UL-Lafayette’s top-ranked computer science program and Lafayette’s growing workforce and fiber-optic network.

This past summer, start-up Enquero announced it would open a tech center in Lafayette. The Milpitas, California company plans to hire 350 new employees by the end of 2017. City officials also expect to see 354 new indirect positions. According to Bloomberg Business Week, Enquero executives considered New Orleans, Baton Rouge, and four other states.

From City-Parish President Joey Durel's official statement:

"These are exactly the kinds of jobs we had in mind when we launched Lafayette's fiber-optic initiative in 2004, so I am thrilled to see that companies are starting to recognize what Lafayette has to offer with its affordable, gigabit speeds...I know Enquero will not regret their decision to locate in Lafayette. This community’s investment in itself is paying off.”

Chattanooga Profiled in Al Jazeera America

“There are companies that do what we do, but we can do it in hours, and they can take weeks,” said Posey. “Anywhere else, it would take a lot more time and a lot more money ... Chattanooga is essential to our business model.”

Al Jazeera America's Peter Moskowitz recently spoke with Clay Posey, one of the entrepreneurs flocking to Chattanooga for the network. Posey works in one of the startup incubators there, Co.Lab, developing his idea for pre-operative models that allow surgeons to prepare before operating on patients.

While Chattanooga may not be the norm and may not be an easy venture for every municipality, it lifts the bar. From the article:

“Whenever a corporation like Comcast wants to do something like raise prices, we can point at Chattanooga and say, ‘Why can’t we have something like that?’” said Christopher Mitchell, head of the community broadband networks initiative at the nonprofit Institute for Local Self-Reliance. “It establishes a baseline or at least an aspirational standard.”

The article describes lobbying efforts by large corporate providers designed to stop the municipal networks model. Another Chattanooga entrepreneur told Moskowitz:

“Having public or quasi-public Internet service providers is a good solution to consolidation because they most likely won’t be sold,” said Daniel Ryan, a local Web developer who helped run the digital operation of Barack Obama’s 2012 presidential campaign. “Do I think if every city did this, Comcast would go out of business? No. But it means there will always be competition.”

Moskowitz included a brief historical summary of the network, its contribution to the electric utility, and the challenges created by state barriers. He included our Community Broadband Networks map.

For more detail on Chattanooga's fiber network, download our case study Broadband at the Speed of Light: How Three Communities Built Next-Generation Networks. The case study also covers the communities of Bristol, Virginia and Lafayette, Louisiana. We also spoke with EPBFiber's Danna Bailey on episode #59 of the Community Broadband Bits podcast.