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Bill Moyers on Network Neutrality and Threat from Comcast

Bill Moyers has returned to again discuss Network Neutrality with guests Susan Crawford and David Carr from the New York Times. The show is embedded below and well worth watching, especially toward the end as Bill reveals the revolving-door between the top levels of the Federal Communication Commission and industry lobbyists.

During the show, they also discuss the importance of ensuring communities are able to build their own networks as an alternative to the massive cable monopolies.

Finally, a post from John Nicols on BillMoyers.com outlines what action you can take to ensure the FCC protects the open Internet. Scroll about halfway down for the specific steps.

Video: 

Wheeler Tells Cable Industry He Intends to Remove Anti-Competitive State Laws

FCC Chairman Tom Wheeler is prepared to roll back restrictions that prevent local governments from deciding if a municipal network would be a wise investment. At the Cable Show Industry conference in Los Angeles, Wheeler told cable industry leaders the FCC will wield its powers to reduce state barriers on municipal networks.

Wheeler spoke before the National Cable & Telecommunications Association (NCTA) on April 30. These words perked up our ears and those of community networks advocates across the U.S. From a transcript of Wheeler's speech

"One place where it may be possible is municipally owned or authorized broadband systems. I understand that the experience with community broadband is mixed, that there have been both successes and failures. But if municipal governments—the same ones that granted cable franchises—want to pursue it, they shouldn’t be inhibited by state laws. I have said before, that I believe the FCC has the power – and I intend to exercise that power – to preempt state laws that ban competition from community broadband."

As our readers remember, a January DC Circuit Court of Appeals decision opened the path for the FCC to take the action Wheeler proposes. Since then, communities have expressed their desire for local authority with resolutions and letters of support. Communities in Michigan and Louisiana, Georgia and Idaho, Illinois, Maryland and Kansas, have shared their resolutions with us. A number of other communities have issued letters of support encouraging action under section 706.

Ars Technica contacted the FCC for more information on Chairman Wheeler's statements. Ars reported:

An FCC spokesperson contacted by Ars said that Wheeler "is not trying to make a distinction between 'ban' or 'limit.' The point is to look at the effect of the law."

The spokesperson said, "We will be taking up this issue in the technology transitions proceedings, and there should be an announcement about this in the next few weeks." It's too early to say "how [Wheeler] will address existing state laws."

As the big companies like Comcast consolidate, enforce bandwidth caps and continuously raise prices, municipal networks are more important than ever. Community owned networks are accountable to the people who use them and put the public good ahead of profit. Community networks are managed in your neighborhood, not in a corner office thousands of miles away.

The content of Wheeler's statement and his choice of venue inspires advocates for publicly owned networks. In order to keep a strong momentum rolling, we encourage you to express your support. The cable and telecommunications lobbyists are already working to prevent the FCC from taking action. When the FCC begins to act, we will want to demonstrate support.

Join our one-email-per-week newsletter to stay in the loop on these developments! If you are excited to demonstrate local support via a resolution or similar effort, let us know.

Paid Prioritization Threat Reinforces Value of Community Networks

Recent reports out of the FCC say that it will allow ISPs to create and sell "fast lanes" of Internet access to the companies with sufficiently deep pockets to afford them. While some people argue over whether this violates network neutrality principles or not, the more important point is that most communities have no control over how the networks on which they depend are operated.

The big ISPs, like Comcast and AT&T, are focused on maximizing revenue for their shareholders. It is why they exist. So they will want to make the fast lanes as appealing as possible, which in turn means making providers like Netflix unable to deliver a high quality product without paying special tolls to Comcast.

What does that mean for you? It means you should expect to see the big providers slow their already anemic pace of investing in higher capacity connections in favor of pushing content providers into the paid prioritization schemes. It also means that you may have to start paying more for Netflix or Hulu, where the additional money goes to the ISP you already overpay for comparatively lousy service.

A range of ISPs, from privately owned Sonic.Net in California to Chattanooga's Electric Power Board right up to Google have demonstrated that they can deliver a "fast lane" to everyone. This fight over paid prioritization is nothing more than the big cable and telephone companies trying to increase their profits while minimizing needed investments in higher quality service to everyone.

Unless you live in an area with a community-owned network. Unlike the big providers with a fidiciary responsibility to distant shareholders, community owned networks are directly accountable to the community. Their mission is to maximize local benefits, not extracting as much wealth from households as possible. ISPs like Sonic also have much more reasonable policies but over time these privately owned ISPs are vulnerable to being bought by the big national providers.

Community owned networks are far less likely to engage in paid prioritization because it adds no value for subscribers in the community. In fact, the worse the big cable companies act in terms of ripping off subscribers, the more valuable community owned networks become by providing a better level of service.

Another example of this is monthly data caps - the big cable companies have been "experimenting" with them in several markets in the south but always in areas where the community has not built an alternative option. Community networks not only offer a much better option to the community, they change the behavior of incumbents who are accustomed to operated in non-competitive environments.

The final benefit of community owned networks is that if the federal regulators fall down on the job AND your community-owned networks engages in behavior that hurts subscribers, there is a democratic process for rectifying that, whether in elections for the city council or coop board.

City of Urbana Passes Resolution Supporting FCC Section 706 Authority

The Illinois community of Urbana, home of UC2B, recently passed a resolution in favor of FCC's section 706 authority. The community's fiber project is bridging the digital divide in this community of 41,000.

On March 17, the City Council voted unanimously to support the FCC as it considers action to discourage, prevent, and remove state legislative barriers that block municipal networks. 

The language is similar to resolutions from communities such as Sebewaing, VidaliaAmmon, and Moultrie. Urbana noted in its resolution that it has made substantial efforts to bring access to more people in the community.  We interviewed Carol Ammons from the U-C Independent Media Center and Brandon Bowersox-Johnson from UC2B in episode 42 of the Community Broadband Bits podcast. Chris, Carol, and Brandon discussed the way the community is capitalizing on the rare urban FTTH network.

RESOLUTION NO. 2014-03-017R

A RESOLUTION TO SUPPORT FCC EFFORTS IN PROTECTING LOCAL AUTHORITY

TO BUILD BROADBAND INFRASTRUCTURE

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, residents of Urbana have a history of advocacy for expansion of Internet access worldwide and the City has invested in local projects to achieve broader access that would not have been realized using private investment alone; and

WHEREAS, local government leaders recognize that the ability to thrive economically and to improve quality of life depends 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 in other states 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, 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 CITY COUNCIL OF THE CITY OF URBANA, ILLINOIS, supports 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.

Process Matters: Harold Feld's Guide to the Time Warner Cable/Comcast Merger

The proposed Comcast/Time Warner Cable deal will be on everyone's mind for many months to come. Thanks to Harold Feld, it is now possible to follow the process as it moves forward. Feld began a series of posts earlier this month that map out the review as it moves from the Department of Justice Antitrust Division to the Federal Communications, and finally to Congress. As Feld notes, the entire process will last six months at least and could run for more than a year. 

In addition to drawing a process map, Feld provides insightful subtleties on the purpose behind each step in the review. He also offers political analysis that may influence the outcome. Feld gets into the unique review process, burdens of proof, and relevant definitions at each stop along the way. Highly recommended, especially for law students.

Part I - Introduction

Part II - Antitrust Review at the DOJ

Part III - Federal Communications Commission analyzes public interest

Part IV - The proposal moves through the committee process and the public has a chance to express themselves to their elected officials (including lobbyists)

 

FCC Rural Broadband Workshop Video

In case you missed it, you can still stream the FCC's Rural Broadband Workshop. The announcement describes the event:

The workshop will include an examination of the broadband needs of rural populations and the unique challenges of both broadband deployment and adoption in rural areas.  In addition, the discussion will highlight the economic, educational, and healthcare benefits that can be realized through broadband deployment and adoption.  The workshop will also examine different business models that have been used to deploy broadband in rural areas, including a discussion of the factors that drive investment decisions and technology choices of different types of providers in rural communities.  Finally, the workshop will examine the role that states have played, and can continue to play, in meeting the rural broadband challenge.

The first discussion, Broadband Needs, Challenges, and Opportunities in Rural America, focuses on the impact broadband access has on education, healthcare, and economic development. Panelists are:

  • Jeff Fastnacht, Superintendent, Ellendale School, Ellendale, ND
  • Charles Fluharty, President and CEO, Rural Policy Research Institute
  • Brian Kelley, CEO, Ag Technologies
  • Thomas F. Klobucar, Ph.D., Deputy Director, Office of Rural Health, U.S. Department of Veterans Affairs
  • Linda Lord, Maine State Librarian
  • Don Means, Coordinator, Gigabit Libraries Network

Rural Broadband Buildout - Effective Strategies and Lessons Learned, will start at 11:00 a.m. and will include:

  • Will Aycock, General Manager, Greenlight Community Broadband, City of Wilson, NC
  • Michael Cook, Senior Vice President, North America Division, Hughes Network Systems
  • Jimmy Copeland, Director of Special Projects, Troy Cablevision, Inc.
  • Cecil Lara, Director Network Planning, AT&T
  • Denny Law, General Manager/CEO, Golden West Telecommunications
  • Ben Moncrief, Director, Government Relations, C Spire
  • Alex Phillips, CEO, Highspeedlink.net

The 1:30 afternoon panel is titled State Strategies to Meet the Rural Broadband Challenge. Panelists are:

  • Ben Dobbs, Deputy Director, Massachusetts Broadband Institute
  • David Salway, Director, New York State Broadband Program Office
  • Catherine Sandoval, Commissioner, California Public Utilities Commission
  • Lori Sorenson, Chief Operating Officer, Bureau of Communications & Computer Services, Illinois Central Management Services
  • Ray Timothy, Ph.D., CEO/Executive Director, Utah Education Network

Louisiana and Michigan Towns Pass Resolutions to Support Municipal Network Authority

Two more communities have gone on the record as supporting local authority for telecommunications infrastructure investment. Communities in Vidalia and Sebewaing passed resolutions supporting the FCC's efforts to use its authority to discourage, prevent, and remove state barriers.

Vidalia, on the west side of the Mississippi in Louisiana, recently began offering free Wi-Fi in its new sports complex and along its riverfront. According to Mayor Hyram Copeland, the lack of free public access left local leaders feeling behind the times. From a Natchez Democrat article in February:

“I was embarrassed to say, ‘No,’ but now I can say we do,” Copeland said. “But the end result of all this is that we will have moved this community forward.”

Vidalia seeks funding for a fiber network. Apparently, they are ready with a design and have the technical expertise in-house, but lack of funds have held up the project.

Vidalia's Resolution is almost identical to those in Ammon, Moultrie, Westminster, and Chanute.

Vidalia Seal

We reported on Sebewaing, located in Michigan's "thumb," last summer. The community runs its own electric utility and, due to lack of interest from incumbents, decided a FTTH network was a project they needed to pursue. According Melanie McCoy, from Sebewaing Light and Water, the project is proceeding as planned.

Sebewaing's Resolution uses the same language to address the points we see in Resolutions from the other communities: the need for better access, the importance of broadband infrastructure to local economies, and the important role of local government in the decision making process. Each community has expressed its support of the FCC's decision to exercise its authority under Section 706 of the 1996 Telecommunications Act.

Georgia and Idaho Communities Pass Resolutions in Support of Local Authority

Two more communities recently passed resolutions in support of local authority for broadband networks.

We have written about Ammon and its open access network in southeast Idaho. The municipal network connects anchor institutions and wireless towers in the community of approximately 14,000 people. Chris spoke with Bruce Patterson, Ammon's Technology Director, in Episode 86 of the Community Broadband Bits podcast.

Their Resolution 2014-0005, signed by Mayor Dana Kirkham, reads:

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, water supply, public libraries, and other important services; and

WHEREAS, the City Council of the City of Ammon recognize that their economic health and survival depend on connecting the community, and they understand that it takes both private and public investment to achieve this goal; and

WHEREAS, state constitutions and state statutes exist that may limit or prohibit local government deployment of municipal Internet services, which has the potential of prohibiting or limiting 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 City of Ammon supports 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 Georgia, Mayor William M. McIntosh of Moultrie also signed a similar resolution on March 4th. Moultrie is part of the Community Network Services (CNS) region where member towns in Thomas County enjoy the benefits of a municipal network.

We spoke with Mike Scott, Moultrie City Manager, in episode 39 of the Broadband Bits podcast. Scott told us how local government, schools, and residents enjoy services the large corporate incumbents would not provide.

Nearby Thomasville was able to eliminate a city tax due in part to savings and revenue directly related to the network.

CNS Logo

Moutrie's Resolution R03-2014-02 language:

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 as a reasonable and competitive cost. This involvement has included electrification, water supply, public libraries, and other important services; and

WHEREAS, historically, 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 City of Moultrie supports 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.

As more communities pass resolutions, we will share their activities. If your community has officially stated that it supports the FCC in its efforts to restore local authority, let us know so we can spread the word.

History of the Quickly Subverted 1996 Telecommunications Act - Community Broadband Bits Episode 89

If all had gone according to the plan behind the 1996 Telecommunications Act, we would have lots of competition among Internet service providers, not just cable and DSL but other technologies as well. Alas, the competing technologies never really appeared and various incarnations of the FCC effectively gutted the common carriage requirements at the heart of the Act.

Earl Comstock joins us today to explain what they had in mind when they spent years developing the goals and text of the Act. A staffer to Senator Stevens - and yes, we discuss the legacy of Senator "series of tubes" Stevens and you might be surprised when you learn more about him - Earl helped to craft the Act and then had to watch as the FCC and Courts misinterpreted it.

At the heart of our conversation is what they believed would be necessary to achieve the goals of expanding access to telecommunications service to all.

Read the transcript from our conversation here.

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 30 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."

Kentucky Municipal Utilities Association Passes Resolution Favoring Local Control in Telecommunications

We recently reported that local leaders in Chanute and Westminster had passed resolutions supporting the FCC as it considers its authority. The Kentucky Municipal Utilities Association (KMUA) passed a similar resolution on February 28th.

KMUA members include 45 city-owned utilities including electricity, water, wastewater, natural gas, and telecommunications services. Members include places our readers are familiar with - Franklin, Glasgow, and Russellville - in addition to a lengthy list of other Kentucky communities.

The KMUA is publicly offering its support to the recent court decision finding that the FCC has the authority to remove or prevent state barriers.

The resolution reflects one of the KMUA credos, as listed on their website:

KMUA opposes any action, legislative or administrative, which would curb, limit, or remove local control of the operations of municipal utilities from their citizen owners. 

We expect to see more resolutions like this as communities decide to go on record. The language is very similar to the Chanute and Westminster resolutions. We have made the document available below.