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Moving From an Age of Internet Scarcity to Abundance

The Seattle Times has published an opinion piece I wrote about the need to move from Internet access business models based on scarcity to those based on abundance.

Many of us have grown accustomed to the speeds offered by modern cable networks. They aren't particularly speedy, but we are used to them. When we find ourselves stuck ong a slow DSL connection, perhaps at a friend or relative's house, we notice how long page loads take and we have to change the way we use the Internet as a result.

Some have said that the slowest network connection you will put up with is the fastest one you have become accustomed to. We can do better and we should. By embracing self-reliance and ceasing to rely on the national cable and telephone companies, we can build better, more affordable networks. Such networks will lead to more innovation, grow the economy, and improve quality of life.

CONSIDER your last electrical appliance purchase. Did you pause to think if your home could handle the increased electrical demand? No, because our electrical networks are built around the principle of abundance, not scarcity.

If the massive cable companies ran our electrical grid like they do their broadband networks, we would have to do without air conditioning, which puts a heavy strain on the grid during peak demand. In contrast, the cable networks get congested during periods of peak activity, failing to deliver the “up to” speed promised in their advertising.

Some new network builders are embracing a different approach, one that has major implications for the future of innovation: adopting a business model of abundance rather than scarcity.

Read the rest here.

Op-Ed: NC In Bottom of Broadband Barrel

Common Cause's Todd O'Boyle and myself have just published an opinion piece in the North Carolina News & Observer to highlight the foolishness of the General Assembly revoking local authority to build broadband networks.

Todd and I teamed up for a case study of North Carolina's most impressive fiber network, Greenlight, owned by the city of Wilson and then turned our attention to how Time Warner Cable turned around to lobby the state to take that right away from communities. That report, The Empire Lobbies Back, was released earlier this month.

An excerpt from our Op-Ed:

The Tar Heel economy is continuing its transition from tobacco and textiles to high technology. Internet startups populate the Research Triangle, and Charlotte’s financial services economy depends on high-quality data connections. Truly, next-generation Internet connections are crucial to the state.

It is deeply disturbing that the Federal Communications Commission ranks North Carolina at the bottom nationally – tied with Mississippi – in the percentage of households subscribing to a “basic broadband” connection. The residents and businesses of nearly every other state have superior connections.

Read the whole thing here.

Broadband is Essential Infrastructure for Communities

In August, we reported on the results of a report on UTOPIA by the Office of the State Auditor General of Utah. As you will recall, the results were less than favorable and presented more fodder for those opposed to municipal telecommunications infrastructure investment.

The same old arguments often rest on the financial investment in municipal networks - they are considered failures if they don't break even or make money. Pete Ashdown, founder of ISP XMission in Utah, addressed those arguments in the Salt Lake Tribune:

UTOPIA provides broadband service in 11 Utah cities. Today, communication infrastructure is no less critical than transportation, sanitation and clean water. Government is not a business, but the infrastructure it provides contributes to a robust business environment.

Consider how private businesses rely on government funded infrastructure. Why don’t entrepreneurs clamor to build the next generation of roads? Why don’t airline companies get off the public dole and build their own facilities? Why are sewer facilities so rarely handled by anyone else but the state?

Does effective infrastructure cost? Considerably. Does it make a profit? No.

For decades now, public service entities have contended with the argument that if they are "run it like a business" they will be more efficient, productive and even profitable. While lessons from the private sector may contribute to increased efficiency at times, government is NOT a business. Applying business tenets should be done sparingly and not in the case of critical infrastructure like electricity, roads, and yes, access to the Internet.

Gary D. Brown, who lives in Orem, shared a guest opinion through the Daily Herald and drew a similar parallel between UTOPIA's status and the business world:

When UTOPIA was first proposed, I was all for getting a fiber optic connection to every home and business in the at-that-time 17 cities. In my opinion, the original business model was sound; install fiber to each home/business and offer data, voice, and television services at the retail level.

Of course, the entrenched incumbent businesses, namely US West (it became Qwest and now CenturyLink), Comcast, and AT&T, who would face real competition, sent their lobbyists to the state legislature and after some intense lobbying, got the legislature to eviscerate the UTOPIA business plan by passing a law that prohibited community-based consortiums such as UTOPIA from offering services at the retail level.

UTOPIA will forever remain in the news because its financial struggles forced member communities to pay part of its costs through sales taxes. Though most community owned networks have not used tax revenues to support the network, we do support the right of communities to do so if they so choose.

We have covered the story of Leverett, where the community imposed a property tax increase on itself to pay for part of a new community owned fiber network. Communities that want to build networks entirely without tax subsidy should be free to do so, but those that want to pay for part of it with tax dollars should also have the right. That should be a local discussion, possibly a heated one. But it should not be decided in state capitals or Washington, DC.

Slate Commentary: Want to Pay Less and Get More?

Today, Slate published an opinion piece by me and Sascha Meinrath from the Open Technology Institute at New America Foundation talking about the important role of community broadband in solving the nation's broadband problem.

A snippet:

In the meantime, local communities are taking matters into their own hands and have created remarkable citywide fiber-to-the-home broadband networks. Many offer services directly to residents, providing a much-needed alternative to the cable and telephone companies. And by creating meaningful consumer choice among competitors, these networks are driving lower prices—spurring new investment and creating new jobs—and keeping more money circulating in the local economy.

Wally Bowen: Open Wireless is Essential Infrastructure

Once again, we are reprinting an opinion piece by Wally Bowen, founder of the nonprofit Mountain Area Information Network based in Asheville, North Carolina. The op-ed was originally published in the Asheville Citizen-Times.

Once upon a time, Internet enthusiasts made the following comparison: the Internet is to 21st-century economies what navigable waterways and roads were to 19th and 20th-century economies.

But what if our rivers and highways were controlled by a private cartel which set tolls and dictated the make and model of our boats and vehicles? It’s unthinkable, of course. Yet over the last decade, a cartel of cable and phone companies has gained this kind of control over more than 95 percent of Internet access in the US.

In response, many communities have built municipal broadband networks. The cartel, in turn, has persuaded legislatures in 19 states, including North Carolina, to pass laws prohibiting municipal networks.

Scholars call this the “enclosure” of the Internet, similar to the enclosure of rural commons by private owners in 18th and 19th-century England. This trend includes smart phones and tablets which are locked down and controlled by licensing agreements. By contrast, the personal computer is open to innovation. You can take it apart, experiment, and create new functionality. You can also download your choice of software, including free open-source programs.

The full impact of this corporate enclosure of the Internet is still to come, but evidence of it is growing. Consider e-books. When you purchase a real book, you enjoy “first sale” ownership. You can resell it or use it as a doorstop. You can do anything with it, except reproduce it. But when you purchase an e-book, your options are limited by a license that can be changed any time by the vendor without your consent.

With an enclosed Internet, we become renters rather than owners. Our freedom to experiment and innovate, while not totally lost, is governed by gatekeepers and licensing regimes.

But there is a way around the Internet gatekeepers: “open wireless” networks using unlicensed spectrum.

Most spectrum used for smartphones is licensed to, and controlled by, the telecom cartel. By contrast, the free Wi-Fi we enjoy in coffeehouses is unlicensed and free for anyone to use and experiment with. But this spectrum has a very limited range. In 2008, therefore, the FCC approved the “TV white spaces” (TVWS) for unlicensed use. Often called “Wi-Fi on steroids,” this superior spectrum has a far greater range and capacity than conventional Wi-Fi.

Last December the FCC approved the first TVWS device. This new technology can provide seamless coverage throughout a city like Asheville, thereby creating a viable alternative to the cable/phone company cartel. Here’s a sampling of what’s possible via “open wireless” technology:

* “Buy local” advocates use open-wireless to run mobile payment systems that keep money in the local economy and reduce the burden of credit card fees on local merchants.

* “Green energy” advocates use open wireless to transform the corporate “smart-grid” to a “micro-grid” that empowers local innovators and entrepreneurs to promote conservation and new sources of energy.

* A hospital in Ohio is field-testing a TVWS network for its emergency room. When EMS vehicles are in range, patient information and vital signs are automatically transmitted ahead to the ER staff.

These creative and local uses of the Internet were possible because of open-wireless technologies. No one had to ask permission of a network owner or pay rent to a license-holder.

For “Smart Cities” and local self-reliance advocates, open-wireless networks are essential community infrastructure. “Community wireless protects our freedom to innovate and problem-solve in ways that keep money and jobs in the local economy,” says Christopher Mitchell, director of the Telecommunications as Commons Initiative for the Institute for Local Self-Reliance.

Since 2003, the nonprofit Mountain Area Information Network (MAIN) has operated an open-wireless network, but its reach and capacity have been limited. With the imminent arrival of the TV “white spaces” technology, MAIN is launching a $50,000 capital campaign to convert its wireless network to TVWS. This new technology is estimated to have a range of 15-20 miles with speeds of 10-15 megabits per second.

As the telecom cartel tightens its grip on the Internet, MAIN and its partners envision Internet access for Asheville and WNC that protects civil liberties and preserves the freedom to innovate for local inventors and entrepreneurs. To learn more or to get involved, visit: http://www.main.nc.us/TVWS.

Wally Bowen is founder and executive director of MAIN. In 2010, he was diagnosed with ALS. He will be stepping down as executive director later this year, but will continue working on community broadband policy and advocacy.

The Future of the Internet, by TNR and Vint Cerf

In a recent editorial (May 24 issue), The New Republic argued that the Obama Administration was doing a decent job on Internet policy and obliquely referenced an article discussing carrier opposition to community broadband. The op-ed begins,

Politicians aren’t always especially thoughtful about, or even familiar with, information technology. George W. Bush used the term “Internets” during not one but two presidential debates. The late Alaska Senator Ted Stevens famously referred to the World Wide Web as a “series of tubes.” And John McCain drew ridicule in 2008 when he conceded that he was still “learning to get online myself.”

Much worse than these gaffes, however, are some of the policies that have been promoted by lawmakers and candidates who seem to fundamentally misunderstand the importance of a free and open Internet. In recent years, we have seen politicians accede to the interests of giant telecom companies rather than support net neutrality; propose anti-piracy bills that threaten Internet freedom; and, as Siddhartha Mahanta recently documented at TNR Online, block poor communities from receiving broadband access.

Good to see this issue being discussed outside of the standard tech circles. Especially when outlets like the New Republic explicitly call for more wireless subscriber protections:

There are, of course, ways in which the administration has disappointed. Even when the White House has done the right thing on Internet issues, it has not always acted as speedily or as forcefully as it might have. Moreover, it has not always done the right thing. Particularly striking was the Federal Communications Commission’s (FCC) decision, in late 2010, to exempt mobile carriers from new rules protecting net neutrality. The FCC’s step blocks Internet service providers from slowing down or preventing access to the content of their competitors—but it only applies to wired, not wireless, providers.

While many of us are hopeful that the government will take a stronger hand in preventing carriers from disrupting the open Internet, Vint Cerf (one of the fathers of the Internet) rightly warns us that overall governance of the Internet itself should remain free from national government control.

Vint Cerf

At present, the I.T.U. focuses on telecommunication networks and on radio frequency allocations rather than the Internet per se. Some members are aiming to expand the agency’s treaty scope to include Internet regulation. Each of the 193 members gets a vote, no matter its record on fundamental rights — and a simple majority suffices to effect change. Negotiations are held largely among governments, with very limited access for civil society or other observers.

There is no need to change the way the Internet is presently governed. As Vint notes,

The Net prospered precisely because governments — for the most part — allowed the Internet to grow organically, with civil society, academia, private sector and voluntary standards bodies collaborating on development, operation and governance.

Public interest groups, like ILSR, have been advocating regulations like network neutrality that would preserve the way the Internet has long functioned. It is the big carriers like Comcast and AT&T that want to change how we access the Internet in order that they can make more money serving as gatekeepers to the net.

Moving Internet governance to the ITU is a different policy discussion that also threatens to change how the Internet is accessed, often to the benefit of governments that want to preserve their power. They want to be the gatekeepers, often in order to consolidate their own power and break up pro-democracy movements.

The key to preserving Internet freedom is removing gatekeepers (and I would include both Apple and Facebook in this list, with Google as a possible addition depending on the circumstance).

If you want to learn more about these issues, the best place to start is with videos from the recent Freedom to Connect conference. And plan to join us next year.

Below is a video from Vint Cerf's opening keynote. We'll feature more presentations from Freedom to Connect in future posts.

Video: 
See video

Bloomberg: The Case for Publicly Owned Internet Service

Susan Crawford's op-ed in Bloomberg makes a tremendous case for publicly owned broadband networks.

She notes the importance of broadband and the failure of big cable and DSL companies to meet the growing needs of communities, just as the electrical trusts were insufficient to electrify much of America.

I'm a bit biased because she cites our work:

Today, the Institute for Local Self-Reliance, which advocates for community broadband initiatives, is tracking more than 60 municipal governments that have built or are building successful fiber networks, just as they created electric systems during the 20th century. In Chattanooga, Tennessee, for example, the city’s publicly owned electric company provides fast, affordable and reliable fiber Internet access. Some businesses based in Knoxville -- 100 miles to the northeast -- are adding jobs in Chattanooga, where connectivity can cost an eighth as much.

Though I encourage readers to read the full column, I love the conclusion:

Franklin D Roosevelt

Right now, state legislatures -- where the incumbents wield great power -- are keeping towns and cities in the U.S. from making their own choices about their communications networks. Meanwhile, municipalities, cooperatives and small independent companies are practically the only entities building globally competitive networks these days. Both AT&T and Verizon have ceased the expansion of next-generation fiber installations across the U.S., and the cable companies’ services greatly favor downloads over uploads.

Congress needs to intervene. One way it could help is by preempting state laws that erect barriers to the ability of local jurisdictions to provide communications services to their citizens.

Running for president in 1932, Franklin D. Roosevelt emphasized the right of communities to provide their own electricity. “I might call the right of the people to own and operate their own utility a birch rod in the cupboard,” he said, “to be taken out and used only when the child gets beyond the point where more scolding does any good.” It’s time to take out that birch rod.

Comcast v. Community in Colorado

Below, you'll find a commentary I just posted on the Huffington Post.

Longmont, Colorado has become ground zero for the battle over the future of access to the Internet. Because big cable and telephone companies have stopped us from having a real choice in Internet Service Providers and failed to invest in adequate networks, a number of communities have built their own networks.

Chattanooga boasts the nation's best citywide broadband network, offering the fastest speeds available in the nation -- and the community owns it. That means much more of the money spent by subscribers stays in town, supporting local jobs.

Longmont, a town near Boulder with 80,000 people, offers a glimpse at how difficult it can be for communities to make any level of broadband investment -- the big cable and phone companies hate any potential competition, no matter how limited.

Longmont's elected officials all agree they need better broadband options to spur economic development. That's why they put a referendum on the ballot that will allow the city to use its existing assets to improve local broadband access. Not only are the mayor and city council unanimous in support of the referendum (2A) necessary for this, their opponents in the city election overwhelmingly agree also! And the local paper just editorialized in favor of it as well.

Who then, is spending hundreds of thousands of dollars to derail it? Comcast and its allies, of course. And this isn't the first time.

Back in the 1990s, the municipality-owned electric utility built a fiber ring to modernize its electrical grid. They took the opportunity to lay more fiber-optic cables than they would need, knowing that they could later be used by the city or partners to expand broadband access for all businesses and resident.

Over several years, the City worked with a variety of partners to spur broadband deployment locally but a new state law in 2005 gutted their ability to work with private partners to expand broadband. Qwest had just pushed what become known as the "Qwest law" through the Colorado legislature. Starting in 2004, telephone and cable companies used their clout in legislatures across the nation to prevent communities from investing in broadband infrastructure. Now Longmont would have to pass a referendum to allow local businesses and resident to use a network the town built years earlier.

In 2009, Longmont attempted to pass the referendum but Comcast and allies dumped over $245,000 into a "Vote No" campaign that spread fear and misinformation far and wide, resulting in 56% of the voters saying no. They set a record in local campaign spending, dwarfing previous amounts from all sides in any Longmont election.

But after the election, when many learned they had been fooled by anti-competition propaganda, they wanted to revisit the issue. On November 1, they have their chance. But again, Comcast and allies are pouring millions into a campaign of misinformation. Their group has already been busted for erroneously claiming the mayor is against the initiative when he has been unequivocally in favor of it. With two weeks to go before election day, they have already surpassed their previous records by spending $275,000 while the pro-2A groups have yet to expend even $5,000. The true grassroots groups are making do with a website and volunteers countering Comcast's misinformation.

Longmont Comcast Comic

The question is whether big companies like Comcast can again fool more then 50% of the voters with their glossy mailers and robo-calls. This is the real problem -- the debates have shown that the opposition to this measure comes almost entirely from outside the community. But Comcast's ability to flood the papers, airwaves, phones, and mailboxes with market-tested anti-government messages is unrivaled. The big cable and phone companies use the same tactics across the U.S., protecting their high prices and poor services from the only real threat of competition they face -- local community investment.

The most recent mailer threatens that a broadband project would raise taxes, an outright lie given that the referendum text starts, "Without increasing taxes, shall the citizens of the City of Longmont..." But the anti-2A groups care about preserving Comcast's market power, not being truthful.

Longmont could join the growing movement of communities that invest in their own broadband networks to ensure fast, affordable, and reliable connections creating local jobs and offering local benefits.

While big citywide networks like Chattanooga's Gig Network have captured plenty of attention, hundreds of communities have made smaller investments -- like the ring Longmont build 14 years ago. Often without even borrowing money, local governments are expanding fiber-optic rings and connections to encourage economic development, create jobs, and lower the cost of providing city services.

This could be the future of access to the Internet -- local initiatives benefiting local stakeholders, putting the needs of the community before the desires of distant shareholders. Longmont makes its decision on November 1. When will your community make yours?

Longmont: Beware the Robo-Calls From Mega-Corporations

Vince Jordan, an advocate for broadband competition in Longmont, Colorado, wrote the following op-ed for the local paper about the upcoming referendum 2A. He has given us permission to reprint it here.

“There you go again” (to quote President Ronald Regan).

Well, it has already started. The folks who spent almost a quarter of a million dollars in the elections two years ago to convince the citizens of Longmont that being able to take further advantage of the fiber network they already own and are using is too dangerous for them, are at it again. No doubt by now, many of you have received one if not multiple “robo-calls” trying to convince you that the City is going to raise your taxes as a result of a yes vote on 2A. The first three words of Ballot Issue 2A say, “Without raising taxes”, but, since the opponents of this ballot, (those being the two mega-corporations who stand to benefit from you voting against 2A), can’t come up with any good reasons against the measure, they are resorting to the tired old cry of “they are going to raise your taxes!”

Citizens of Longmont, from 1997 to 2005, we had the right to use the asset that the city owns, namely the fiber network, to the benefit of ALL of the businesses and citizens of Longmont. The same corporations that are trying to “buy” your vote again, as they successfully did in 2009 with their “No Blank Check” campaign, in 2005 were able to lobby for and buy a law that took away our right to fully utilize this city owned asset. What ballot issue 2A is asking is for the citizens of Longmont to take back a right they once had.

This fiber network, which is fully operational today and used by the city for city purposes, and in fact already benefits the citizens of Longmont to some degree by keeping city service communications cost low, can do so much more. Our fiber network can be used to enhance the three Es, Employment, Education and Entertainment, here in Longmont. Low cost communications is as much a necessity today as is low cost power and water. Longmont already benefits from the lowest power rates in the country and the best service. Why wouldn’t we want the same advantage in the communications network that serves our businesses, our schools and our homes? Do you really believe the opponents of this measure, the lawyers from Denver being paid for by Comcast and CenturyLink, (stated so in a recent Chamber of Commerce session by the very lawyer), and the folks from Colorado Springs being funded by the same organizations, REALLY have YOUR best interest at heart? Do you think these folks would even be here if they weren’t being paid by these corporations?

When the election was over in 2009 and we lost by a very slim margin and the city was then able to explain more clearly what we lost, many of you wrote to the editor of the paper stating that if you had known what the ballot issue was actually about, instead of the “No Blank Check” that you had been convinced it was about, you would have voted for it. Well, here is your second chance Longmont. Don’t let the two mega-corporations “buy” your vote with robo-calls and the mis-information mailings that will no doubt start this week. Be informed and take back the right you had to an asset that you already own, to the benefit f our businesses, our schools and ourselves.

Vote YES! on 2A! Visit Longmont's Future. Be part of Longmont’s Future!

Robo Call graphic courtesy of Mike Licht, NotionsCapital.com

The Short Story of AT&T's Attack on Schools, Libraries in Wisconsin

 

I wrote the following synopsis of AT&T's attack on schools and libraries in Wisconsin for SaveTheInternet.com.  We are still waiting for the Governor to sign the bill, something that may take another week or longer apparently.

WiscNet is an Internet services co-op that provides Internet access to the vast majority of schools and libraries in Wisconsin, as well as a number of local governments. Because it’s a co-op, it can deliver lower-cost broadband to public entities than they could negotiate on their own. The arrangement between WiscNet schools and governments saves Wisconsin taxpayers millions of dollars each year and offers services that private companies like AT&T won’t provide.

Despite WiscNet’s proven utility throughout the state, AT&T and its incumbent allies (a group called Access Wisconsin) attempted to murder WiscNet in the back alleys of Madison, Wisconsin’s capital. But following a dramatic outpouring of public support for the network, lawmakers compromised and merely placed it on death row.

AT&T dumps millions into Wisconsin politics for a reason — to enact its agenda. When it furtively inserted a few provisions into a budget bill in the 11th hour a few weeks ago, legislators went merrily along without asking any questions.

These provisions would have effectively shut WiscNet down, and they would have required the University of Wisconsin, a premier research institution globally, to withdraw from Internet2 and other research networks. They also would have forced the University of Wisconsin Extension to return federal broadband stimulus grants that had already been used to break ground on projects to improve connections in rural areas with inadequate connections. Returning those grants would have cost $27.7 million over 5 years to the involved communities and killed almost 500 jobs.

Why did AT&T do this? Access Wisconsin claimed stimulus-funded networks are "unfair" competition. Yet, it had applied for and received federal broadband stimulus grants the year before! Unfortunately for Access Wisconsin, that award had to be returned because it hadn't read the rules that would require making the funded infrastructure open access. Whoops.

Fortunately, a broad coalition supporting WiscNet responded to these threats by flooding elected officials with phone calls, letters, and site visits (a lesson to those who would provoke librarians). The legislators soon came to a compromise, but a few days later, AT&T (with its unparalleled lobbying clout in Wisconsin) undid the compromise before it could pass. A lesson to all those who work for the public interest: It is not over until signed by the executive.

WiscNet and allies again rallied and pulled WiscNet back from the hangman's noose. But the legislature couldn't let AT&T go home empty-handed, so they gave WiscNet two years to convince the legislature to let it live. And while today's stimulus funds were saved, UW cannot accept future grants to improve Internet access without approval from Madison.  The bill now sits on Governor Walker’s desk awaiting signature.

This fight in Wisconsin was just one of many in state houses across the nation this year. The Time Warner Cable anti-municipal broadband bill in North Carolina was the most prominent example, but South Carolina and Arkansas also had incumbents pushing to limit public broadband — the only real threat of competition those networks face. Positive legislation in TennesseeWashington, and New Hampshire was killed by powerful incumbents including Comcast, AT&T, and others. These companies are increasingly bold about limiting community networks that put community needs first.