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Google Congratulates Longmont on Referendum

Update: A contact at Google cast doubt on whether the call below was made -- but also reiterated that Google is on the record opposing state laws like that in Colorado that take authority away from communities.  

We have learned that Google called Longmont Power to congratulate them on regaining their authority via the successful referendum.  Apparently, Longmont was a top contender for the Google Gigabit project but Google was unable to determine whether Longmont had the authority to work with them due to the anti-competitive 2005 Qwest law.  

Presumably this places Longmont back on the list of places Google may try to build a network depending on the outcome in Kansas City.  

This is yet another example of why state restrictions on local broadband authority is entirely counter-productive to spurring broadband investment.  We previously speculated that Texas law prevented Austin from being Google's partner.

States: STOP taking broadband authority away from communities. Local authority is essential for investment in next-generation networks.  Communities: make sure you are making smart partnerships!  Don't just jump at anyone pretending to offer a free lunch.  

Oregon Town To Build Open Access Fiber Network Complement to Wireless Network

Sandy, a growing community of about 10,000 outside Portland in Oregon, is now building a FTTH network to expand on their successes offering city-run wireless broadband in 2003. They've done the whole wireless thing for 8 years but understand the future is high capacity, high reliability connections.

They are starting with a pilot program that seized on energy created by Google's gigabit initiative -- they held a "Why Wait for Google?" contest that asked neighborhoods to show their potential interest in a fiber-optic network.

When the Cascadia Village and Bornstedt Village won the contest, they were asked how they wanted to be involved:

What happens now? This is a pilot program, so we’re taking it step-by-step. We want the residents and property owners in Cascadia/Bornstedt Villages to be partners with us in making decisions on how this service will work. And we want it to be democratic: whatever we do, it will only be with the support of the majority of the residents and property owners who get involved.

The first thing we need to know is: how would you like to be involved? We have a lot of options, depending on your level of interest, and how busy your life is. On one end of the spectrum is simply asking us to keep you informed through e-mail or letters, and at the other end is your active participation (over a course of several meetings) in the detailed planning for the implementation of this pilot project. (Note: in the case of rental properties, we encourage both the landlord and the tenant to stay involved, and we have tried to mail this letter to both, based on available records).

This is a far cry from the massive cable and telco approach of "you will get what we give you when we offer it on the terms we decide."

SandyNet Logo

SandyNet is going to continue providing access to the Internet, but according to the FAQ, they will operate the network on an open access basis, encouraging independent service providers to offer dial tone and television services on it as well.

The Oregonian covered the SandyNet story -- nearby Portland has long considered a publicly owned network that the Oregonian has skeptically covered.

The plan is an underground deployment that could take 10 years. When we have previously seen communities consider such a long deployment horizon, it is because they plan to build the network opportunistically without issuing debt. But Sandy is considering financing the network with muni bonds. Regardless of when it is available, the goal is to offer 100Mbps at $40/month -- which would make it one of the most attractive broadband deals in the nation, indeed on the continent.

Sandy has also passed an ordinance requiring new developments to install underground fiber along with other utilities -- a rule we will take a greater look at in the near future.

Google Gigabit Chief Defends Local Authority to Build Broadband Networks

Google's Gigabit Chief, Milo Medin (actual title: VP for Access Services), told the House Oversight and Government Reform Committee that the FCC takes too long to make decisions, causing uncertainty for a variety of companies and slowing innovation.

But more interestingly, he advocated that federal and state governments stop making it hard for local communities to build their own broadband networks.

Medin also advocated for a policy loathed by some parts of the cable industry: municipal broadband.

"Localities know more about what works for their communities than state governments or the federal government do. In the end, we feel that while this is probably not the right choice in many cases, it is something that should not be prohibited," he said.

Allowing communities to address their own broadband needs could help extend broadband to rural areas, according to Medin.

We have been offering in-depth coverage of Time Warner Cable's efforts to strip communities of that authority in North Carolina as well as other issues around preemption.

Medin's statement echoes that of the FCC National Broadband Plan: "Congress should make clear that Tribal, state, regional and local governments can build broadband networks." This recommendation was recently Reiterated by FCC Commissioner Mignon Clyburn:

I recently learned that several state legislatures are considering bills that are contrary to the deployment objectives of the Broadband Plan. For example, in North Carolina, the state legislature is currently evaluating legislation entitled ‘Level Playing Field/Local Government Competition.’ Last week the North Carolina House passed the bill, and it currently awaits consideration in the Senate. This piece of legislation certainly sounds goal-worthy, an innocuous proposition, but do not let the title fool you. This measure, if enacted, will not only fail to level the playing field; it will discourage municipal governments from addressing deployment in communities where the private sector has failed to meet broadband service needs. In other words, it will be a significant barrier to broadband deployment and may impede local efforts to promote economic development.

The National Broadband Plan recommended that Congress clarify that State, regional, and local governments should not be restricted from building their own broadband networks. When providers cannot meet the needs of local communities, the Plan provides that State, regional, and local entities should be able to respond accordingly, as they were able to do when municipal governments distributed electricity to thousands of rural communities during the 20th Century. Unfortunately, this National Broadband Plan recommendation continues to be ignored by some broadband industry members that are encouraging these misguided efforts.

Public Ownership is Good for Business

Opponents of public ownership like to claim that publicly owned broadband is somehow hostile to business -- this is a a major Time Warner Cable talking point in North Carolina. The reality is that community networks are incredibly biased in favor of local businesses. Most community fiber networks resulted out of economic development needs, when public leaders realize the fast, reliable, and affordable access to the Internet is a key to attracting businesses (and that massive absentee incumbents rarely care to invest enough to attract those businesses).

Unfortunately, the argument resonates among a public that rarely remembers the U.S. economy was built on key public infrastructure investments -- from roads and highways to water works to universal electrification, if the public didn't own the infrastructure outright, it attempted to regulate in the public interest. And though regulators are frequently captured by those they regulate, the outcome is still better than allowing unaccountable electrical trusts to arbitrarily decide how much to gouge their customers.

When Google was search for a community partner in building its gigabit network, it was not shy about public ownership -- we now know that a key factor in the decision was Kansas City's publicly owned electrical company. Being owned by the City allowed Google a single point of contact and an assurance that they could all work together to build the network.

Surveying businesses in three early FTTH communities revealed dramatic savings:

In terms of fiber-enabled cost savings, 120 businesses in Bristol reported an average of $2,951 in savings per year, while, in Reedsburg, 33 cited annual cost savings averaging $20,682. Twenty Jackson businesses reported cost impacts due to fiber, with one large organization reporting a total of $3 million in savings. The other 19 Jackson respondents reported a net average cost increase of $3,150 per organization.

Make no mistake, public ownership of infrastructure is not anti-business, it is pro-business. There are a handful of businesses that benefit tremendously when they control infrastructure -- but it comes at the expense of the vast majority of businesses and citizens.

Did Texas Preemption Against Community Broadband Derail Austin's Bid for Google Gigabit?

In all of the hubbub around Google's Gigabit project announcement of Kansas City, Kansas, Stacey Higginbotham at GigaOm put up a fascinating post:

Chip Rosenthal headed the grass roots effort to bring Google’s gigabit fiber network to Austin, and he says the Texas capital was on the short list of cities that received a site visit and were in the final rounds. Unfortunately for Austin (and me since I’d be happy to plug into a fiber-to-the-home network) Google passed over the city and chose Kansas City, Kan. instead. Rosenthal, who is one of seven commissioners on the City of Austin’s Technology and Telecommunications Commission (a strictly advisory body), thinks it’s because Texas is one of four states that forbids municipalities from getting involved in building networks.

I frequently said that if I were at Google, I would not partner with a community in a state that has decided to limit local authority to make broadband investments. We do not know for sure what role these laws played, but it is interesting that Kansas City, Missouri, has much less freedom to build telecommunications networks than does Kansas City, Kansas.

From everything we know, this network will owned and operated by Google - which means we do not consider community broadband. Though we salute Google's approach of open access (allowing independent ISPs to use the network), the future of the network is tied to Google, not the community in which it operates. Our hope is that this network helps to prove the model of open access networks, making it more feasible for communities around the country to build their own such networks much as they build the roads on which modern communities depend.

And in the meantime, it is really, really dumb policy to take the choice of whether to build a community network out of the hands of the community.

Christopher Mitchell Discusses NC Muni Network Ban on Tech News Today

Yesterday, the Tech News Today netcast on the TWiT network invited me on to discuss the North Carolina legislation to kill community networks and the Google Gigabit network decision to build in Kansas City, Kansas.  I am on the first 12 minutes or so of the show, embedded below.  

Video: 
See video

Opposition Builds to TWC Bill in NC - Private Companies Weigh In Against Bill

A coalition of private companies, including Alcatel-Lucent, American Public Power Association, Atlantic-Engineering, the Fiber to the Home Council, Google, Intel, OnTrac, Telecommunications Industry Association, and Utilities Telecom Council, have released a letter opposing HB129/S87 in North Carolina. The bill would create considerable barriers to community broadband networks and public-private partnerships, effectively outlawing both given the restrictive language. We examined this bill here. This the text of the letter they released:

February 25, 2011
via email

Representative Thom Tillis
Speaker of the House
Room 2304
16 West Jones Street
Raleigh, NC 27601-1096

Senator Phil Berger
Senate President Pro Tempore
Room 2008
16 W. Jones Street Raleigh, NC 27601-2808

Dear Representative Tillis and Senator Berger:

We, the undersigned private-sector companies and trade associations, urge you to oppose H129/S87 (Level Playing Field/Local Competition bill) because it will harm both the public and private sectors, stifle economic growth, prevent the creation or retention of thousands of jobs, hamper work force development and diminish the quality of life in North Carolina. In particular, this bill will hurt the private sector in several ways: by curtailing public-private partnerships, stifling private companies that sell equipment and services to public broadband providers, and impairing educational and occupational opportunities that contribute to a skilled workforce from which businesses across the state will benefit.

The United States continues to suffer through one of the most serious economic crises in decades. The private sector alone cannot lift the United States out of this crisis. As a result, federal and state efforts are taking place across the Nation to deploy both private and public broadband infrastructure to stimulate and support economic development and jobs, especially in economically distressed areas. North Carolina has been the beneficiary of these efforts, as MCNC, with its $148 million award, is now building a state-of-the-art fiber optic network that will cross 106 counties and make available low-cost, internet connections to numerous high-cost, low-density, communities that the state’s private providers have chosen not to serve. H129/S87, with its burdensome financial and regulatory requirements, will prevent public broadband providers from building the sorely needed advanced broadband infrastructure that will stimulate local businesses development, work force retraining and employment in these economically depressed areas.

Consistent with these expressions of national unity, public entities across America, including North Carolina, are doing their share to bring affordable high-capacity broadband connectivity to all Americans. Enactment of direct or effective barriers to municipal broadband such as H129/S87 would be counterproductive to the achievement of these goals. It would also be inconsistent with our country’s National Broadband Plan, which recommends that no new barriers be enacted and that existing barriers be removed.

We support strong, fair and open competition to ensure that users can enjoy the widest range of choices and opportunities. H129/S87 is a step in the wrong direction. North Carolina should be removing barriers to public broadband initiatives rather than establishing new ones, so that high technology companies can spread and prosper into all the communities in this beautiful state. Please oppose H129 and S87, and any other measures that may emerge that would significantly impair municipal broadband deployments or public-private partnerships in North Carolina.

Chattanooga Announces 1 Gbps Tier

Chattanooga has announced a new level of service, offering 1Gbps to all subscribers in a unique citywide offering. Chattanooga previously led the nation with a 150Mbps tier. Today has been crazy, and lots is being written about this announcement, so I'll highlight stories and saving adding something interesting until later.

A quick reminder, we recently wrote about their insistence on taking fiber to everyone, rural and urban.

The New York Times started the Choo Choo coverage this morning:

Only Hong Kong and a few other cities in the world offer such lightning-fast service, and analysts say Chattanooga will be the first in the United States to do so. “This makes Chattanooga — a midsized city in the South — one of the leading cities in the world in its digital capabilities,” said Ron Littlefield, the city’s mayor.

Ars Technica offers additional perspective (as usual):

The city hopes this will give it a competitive advantage; on the new website promoting the service, the city's Electric Power Board pitches its country-leading broadband as "a test bed for next generation technology," as "the ultimate tool for entrepreneurs," and a place where "bandwidth is no problem." The consistent theme: you should move to Chattanooga.

(It also reminds us that Chattanooga is far beyond the FCC's timid goals in the National Broadband Plan.)

Giga Om has lost the lust for his still-respectable 100Mbps.

EPB says that their 100 Mbps service is now costing $140 a month and the 1 Gbps service will cost $350 a month.

Though Chattanooga has beat Google to the punch, this does little to change Google's goal of even cheaper 1Gbps with open access - the race is not simply to 1Gbps, it is to the future! Those who are putting Google down in some way are grasping for something to say about a stunningly unique offering. Sad to see Google put down in some way merely because they announced their big ambitions.

For those who wonder who could possibly use this service, Harold DePriest describes one:

Dr. James Busch is a local Chattanooga radiologist who currently uses Fi-Speed Internet service and is looking forward to speeds of up to 1 gig.  He says even at his current speeds, each radiologist has increased their work flow by 27 percent – equivalent to having three extra doctors on staff.  With 1 gig, who knows what advancements an office like Dr. Busch’s could make.

That Harold knows Dr. Busch is a good sign -- community fiber networks know their subscribers. I doubt Comcast's execs could find most of the communities they serve on a blank map.

Don't forget the smart-grid benefits,

And then there are the Smart Grid benefits.  By fall of 2012, all 170,000 homes and business within EPB’s service area will be connected to our 100% fiber optic Smart Grid.  This means a 40 percent reduction in customer outage minutes, increased electric power reliability and efficiency, and customer tools to manage energy needs, like an energy portal on your home computer or television. 

Finally,

According to the new ChattanoogaGig.com, Chattanooga is looking for Entrepreneurs:

We have built an expansive, powerful, 100% fiber network. But the power isn't in the platform. The real power is in how we use it. Our infrastructure spurs research and development of new technologies right here in the United States, and preserves American jobs.

This is the ultimate tool for entrepreneurs. For established companies looking to become game-changers. For anyone needing a system that can help test and prove ideas.

Instead of trying to guess what products and services the market will demand, we are inviting talented people to use our network to work on complex challenges.

Not one size fits all, but one platform for mass innovation, accelerated R&D, broad testing and deep creativity.

See our follow up post on Chattanooga here.

Network Neutrality: Google, Verizon, and Us

A few thoughts on the Google-Verizon talks and behind closed doors FCC stakeholder meetings with industry...

First, neither the FCC nor Google is likely to defend the interests of the vast majority of us and the communities in which we live. Companies like Verizon don't dump millions in lobbyists and lawyers on a lark - they do it because that level of spending gets them access and action. Google, its don't-be-evil mantra notwithstanding, remains a company that looks out for its interests first.

And Google's interests may well be ensuring that its content is always in the "fast lane" despite their historic approach of pushing for an open internet where no business can simply pay to get get a higher level of service from an ISP.

This is not an "abandon all hope" post about network neutrality. The FCC has substantially changed course on this issue many times (largely due to massive public pressure - thank you to Free Press for organizing so many folks), so I still have hopes that it will enact regulations to preserve the open internet.

However, these regulations are certainly not the best approach. It is a messy approach to solving a problem that fundamentally comes down to the fact that network owners operate essential infrastructure in the private interest rather than the public interest.

We don't have to worry that national bakeries are going to be prioritized over local bakeries in access to the roads they need to make their deliveries. UPS, FedEx, and the US Post Office do not have to engage in separate agreements in every community over who gets to use the roads and what speeds they can travel on them. When it comes to roads, the rules apply to all like vehicles equally (which is to say that all big trucks are treated like big trucks and passenger cars are treated like passenger cars).

If I lived in Chattanooga, Monticello, Lafayette, Brigham City, Bristol (TN or VA), Wilson, perhaps soon Opelika, or dozens of other communities with publicly owned broadband networks, I would be watching this ongoing network neutrality fight with a rather bemused expression because my network is democratically accountable to the community and that offers far greater accountability than anything that will come out of an FCC proceeding.

Update: A fascinating reminder from the Economist on the proper role for regulators:

If companies always agreed with regulators' rules, there would be no need for regulators. The very point of a regulator is to do things that companies don't like, out of concern for the welfare of the market or the consumer.

Photo used under Creative Commons license from AdamWillis.

More Resources for Community Networks

As more and more of America confronts the reality that communities need better broadband networks -- networks that respond to their needs first rather than the desires of shareholders in some absentee company -- we are seeing more resources for communities determined to preserve their self-determination.

As one who has deep misgivings about Facebook increasingly being a mediator of content, I am glad to note that Communities United for Broadband has a website in addition to their Facebook page.

As Google continues to ponder which communities will get the Google Gigabit network(s), it has announced a Google Fiber for Communities website intended to get citizens involved in pushing for pro-broadband policies at the local, state, and federal levels.

Regarding the Google Gigabit, some thought the Google might be showing interest in UTOPIA with some recent meetings, but Jesse Harris at FreeUTOPIA probably has the correct analysis: far too early to tell.