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ILSR Submits Comments to FCC in Support of Restoring Local Authority

The Institute for Local Self-Reliance recently submitted comments on FCC petitions filed by Wilson, North Carolina and Chattanooga, Tennessee. We have been following the proceedings that may prove to be the tipping point in the movement to regain local telecommunications authority.

Our organization collaborated with eight other groups and two D.C. Council Members to provide detailed comments for the Commission's consideration. Our group supplied examples of the benefits munis bring to local communities. In addition to providing connectivity where the incumbents fail to meet demand, our comments point out that municipal networks encourage private investment. We provide concrete evidence of both.

With our partners, we also addressed the fact that state restrictions like the ones in North Carolina and Tennessee are not needed. Local communities must go through a rigorous, transparent process everywhere before investing. State legislative barriers are the product of intense lobbying from the cable and telecommunications giants.

As we point out to the Commission, municipal networks are an important tool to bring ubiquitous Internet access to the U.S.:

The FCC is tasked with ensuring high speed access is expanded to all Americans on a reasonable basis and to remove barriers to broadband deployment. Local governments have proved to be an important tool in expanding access to high speed Internet access. Both Chattanooga and Wilson have neighbors that publicly want the local municipal network to expand access to them. Both Chattanooga and Wilson are prepared to invest in connecting their neighbors. Restoring authority to local governments, so they may decide for themselves if a municipal investment or partnership is an appropriate way to expand high speed Internet access, will result in a more rapid deployment of high speed Internet access.

We also filed comments alone to provide the FCC a small sample of the support people and organizations have shared with us. Even before the comment period, we heard from local governments and organizations that passed resolutions in favor of local authority, members of the business community that support local authority, and media outlets that endorse local decision making.

From our closing comments:

ILSR stands with local businesses, residents, media outlets, and many others in encouraging the FCC to grant this petition, restoring the capacity of local governments to invest in next generation Internet access or partner to the same effect, if they so choose. We have worked with communities across the nation and recognize that this is not a partisan issue at the local level. It is about jobs, education, and quality of life. Restoring the right of communities to invest in fiber networks will result in faster deployment of fast, affordable, and reliable Internet networks.

Center for Public Integrity Covers Big Telecom Attacks on Munis

The Center for Public Integrity recently published an excellent article worth sharing. In "How big telecom smothers city-run broadband," Allan Holmes describes the money-for-infleunce machine at the state level, connects the dollars, and reveals bedfellows. The article is part of a series investigating the political power of big cable and telecom companies.

If you are a regular at MuniNetworks.org or any other news source covering telecommunications, you are familiar with the renewed push to restore local telecommunications authority that began in January of this year. Holmes provides a little background on the court case that inspired FCC Chairman Wheeler to publicly state that the agency is serious about restoring local authority.

Since those developments, an increasing number of journalists have reported on how we came to have barriers to municipal networks in some 20 states. The revived interest has further revealed that state legislatures are big benefactors of campaign contributions from cable and telecom leaders. "Think tanks" aimed at protecting industry giants and conservative millionaires prove to be at the heart of this payola. Holmes does an excellent job of simplifying the web of political influen$e that dooms millions of people to dial-up, outdated DSL, and aging cable infrastructure.

Holmes follows the story of Janice Bowling, a state senator from Tennessee representing the district that is home to LightTUBe in Tullahoma. When she introduced a bill to allow LightTUBe to expand to serve surrounding communities, she did so because:

…I believe in capitalism and the free market. But when they won’t come in, then Tennesseans have an obligation to do it themselves.

When it appeared the bill might get some traction:

That’s when Joelle Phillips, president of AT&T’s Tennessee operations, leaned toward her across the table in a conference room next to the House caucus leader’s office and said tersely, “Well, I’d hate for this to end up in litigation,” Bowling recalls.

Holmes delves into the Herculean efforts by incumbents to quash municipal network projects in other communities, such as Lafayette, Louisiana. Millions of dollars have been spent on lobbying and lawsuits instead of upgrades to improve services or connect more potential customers.

For the next three years, Lafayette spent $4 million responding to three lawsuits and subsequent appeals from BellSouth, which AT&T bought in 2006, and Cox.

The article addresses the fact that better connectivity leads to better economic development. This is only one of many stories from Tullahoma:

Agisent Technologies Inc., which provides online records management for police departments and city jails, moved to Tullahoma in 2011 because it needed a fast reliable broadband network that had a backup if the connection failed, said David Lufty, the company’s president.

Charter and AT&T couldn’t offer redundancy, but LightTUBe could.

“Since we’ve been here, we haven’t had more than five minutes of downtime in almost three years,” Lufty said.

Holmes compares Tullahoma, where job growth outpaces the state average, to Fayetteville, North Carolina. Fayetteville, struggles to beat down unemployment. All the while existing fiber resources that could be used for local business and residents sits untapped due to a 2011 state law. When a Fayetteville Senator tried to exempt his community through legislative process, he was personally attacked in the Chambers. Fayetteville did not get its exemption.

For Steven Blanchard, chief executive of Fayetteville’s Public Works Commission, prohibiting Fayetteville residents from using the fiber network that’s already there doesn’t make sense.

“Why shouldn’t we be allowed to sell fiber if it runs by everyone’s house?” Blanchard said. “They are already paying for the fiber to be there, so why not allow them use it for telephone and Internet and capture back a lot of the cost they put in to have it there?”

The article offers some powerful graphics comparing services, state laws, and political influence dollars.

A must read! Don't miss it!

Understanding the Wilson and Chattanooga FCC Petitions - Community Broadband Bits Podcast 110

Given the exciting development of the FCC opening comment on petitions from Wilson, NC and Chattanooga, TN to restore local authority to their states, Lisa and I decided to take over this week's podcast of Community Broadband Bits.

We talk about the petitions, some background, and interview Will Aycock from Wilson's Greenlight Gigabit Network and Danna Bailey from Chattanooga's EPB Fiber network.

We finish with some instructions on how you can comment on the record. The Coalition for Local Internet Choice also has commenting instructions and some sample comments.

Read a transcript of this show, episode 110, courtesy of Jeff Hoel.

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 22 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 Waylon Thornton for the music, licensed using Creative Commons. The song is "Bronco Romp."

Community Network Media Roundup: Week of August 1

The effort to restore local authority in deciding whether or not to build a municipal fiber network is full speed ahead.

On Monday, the FCC responded to petitions from Chattanooga, TN and Wilson, NC by opening up formal proceedings on the matter, and requesting people weigh in on the issue. Reporters from the Washington Post to GovTech covered the story.

Starting off this week’s Media roundup, we hear from Carl Weinschenk with IT Business Edge. He stated what we’ve all been thinking (and saying) for a while now:

“The fight over the right of municipalities to build their own networks seems like such a no-brainer that it takes some digging to even figure out why opposition to the idea exists.”

The Switch’s Brian Fung helped do that digging, and wrote an excellent piece on how the municipalization of electricity in the late-19th century fits into the discussion, and how that history can help to build a case for community networks. 

“[In 1933] Roosevelt launched the Tennessee Valley Authority (TVA) and the Rural Electrification Administration... ‘TVA went in with the notion of, 'Let's make power cheap enough that the average person can afford it, and let's make money by selling on volume — not on massive margins," said Harold DePriest, chief executive of the public electric utility in Chattanooga, Tenn. "That worked for TVA. And at the time, it forced the private power companies to reduce the rates.’"

GovTech’s article, while it questions whether municipal networks are the answer, raises a powerful point: If ISP’s were getting the job done, cities wouldn’t have to come in and set up networks. 

“EPB officials [in Chattanooga] say the FCC is required by Congress to remove barriers to Internet accessibility. The point of EPB’s petition is to remind the FCC of that and solicit the agency’s help in changing current state law.

EPB Fiber Logo

Joyce Coltrine, for one, is on board... She says Internet providers have snubbed her and her neighbors for years. She says broadband is not available in her slice of the county… Coltrine told commissioners that Internet hot spots and 4G data packages are too expensive and spotty to rely on for dependable connections. Her frustrations were affirmed by an “Amen” from the crowd and other murmurs of agreement.”

After months of discussion and a blog post that stated Chairman Wheeler’s support of a community’s right to fair and open competition, The consumerist’s Chris Morran put it bluntly: “Put Up or Shut Up”.

Lightreading took up the topic from more than one angle. Carol Wilson wants to know: 

“... waiting for incumbents to get around to upgrading aging copper networks in many areas seems a strategy already doomed to failure. These companies exist to make money, and if they could have done that building gigabit networks in smaller cities and towns, it would have happened by now. So if not a muni-backed network, then what?”

Jason Meyers talked to Teresa Mastrangelo, who founded BroadbandTrends LLC. She also has noticed a disturbing (but not surprising) trend in who gets connected and who’s left out in the cold: 

"...Clearly these members of Congress have a lot of funding coming to them from big players," she says. "The Communications Act is actually preventing people from participating in the digital age in these cases. In un-served and under-served markets, there should be exceptions to this rule."

The FCC anticipated that communities would step forward to ask them to overturn the state limits. Ars Technica’s Jon Brodkin makes clear that the petition is focused on the specific communities that filed the petition: 

“These petitions will be handled on a case-by-case basis, so don't expect the FCC to make a single declaration that preempts all state laws inhibiting municipal broadband. ‘The FCC has the authority to take broader action through rulemakings—but that is not what is happening here,’ an FCC spokesperson said.”

The public comment period for the Chattanooga and Wilson petitions ends August 29. the Coalition for Local Internet Choice (CLIC) has posted instructions on how you can have your voice heard.

Chattanooga and Wilson Comment Period Open; Tell the FCC You Support Local Authority

Last week, the communities of Chattanooga and Wilson, North Carolina, filed petitions with the FCC. Both communities requested that the agency remove state barriers preventing expansion beyond their current service areas. On July 28, the FCC established a public comment calendar for the request. It is imperative that all those with an interest in better access take a few moments to express their support for these two communities.

Opening Comments are due August 29, 2014; Reply Comments will be due September 29, 2014. That means you need to submit comments by the end of this month. If you want to reply to any comments, you can do that in September.

This is a pivotal moment in telecommunications policy. For months municipal network advocates have been following Chairman Wheeler's stated intentions to remove state barriers to local authority. Within the past few weeks, federal legislators - many that rely on campaign contributions from large providers - pushed back through Rep Marsha Blackburn (R-TN). Blackburn introduced an amendment to a House appropriations bill preventing FCC preemption if the amendment becomes law.

ILSR and MuniNetworks.org encourage individuals, organizations, and entities to file comments supporting the people of Wilson and Chattanooga. These two communities exemplify the potential success of local Internet choice. We have documented their many victories on MuniNetworks.org and through case studies on Wilson [PDF] and Chattanooga [PDF].

Now is the time to share your support for local decision-making. This is not about whether any given community should build its own network so much as it is about whether every community can decide for itself how to best expand and improve Internet access, whether by investing in itself or working with a trusted partner.

ILSR will be filing comments in support of Wilson's and Chattanooga's petitions. As a service to those who plan to express their support for local authority, we will continue to provide information, guidance, and resources throughout the comment period. In the near future, there should be a guide to help you submit comments. But if you are really enthusiastic or already know the process, here are some links.

File comments electronically for Wilson's petition at Proceeding 14-115; Chattanooga's petition is Proceeding 14-116. Petitions and exhibits are available at the filings pages or at the links below.

North Carolina Town Saves Public Dollars With Its Own Network

On June 18 Holly Springs, home to approximately 25,000 people, started saving money with its new fiber I-Net. Last summer, the Town Council voted to invest in fiber infrastructure as a way to take control of telecommunications costs. Just one year later, the 13-mile network is serving community anchor institutions.

After exploring options with CTC Technology and Energy, Holly Springs determined that deploying their own $1.5 million network was more cost effective than paying Time Warner Cable for data services. Annual fees were $159,000; over time those costs certainly would have escalated. According to the Cary News, Holly Springs anticipates a future need for more bandwidth:

“And we wouldn’t have been able to actually afford as much (data) as we need,” [Holly Springs IT Director Jeff Wilson] said. “Our costs were going to be getting out of control over the next couple of years.”

Because state law precludes the town from offering services to homes or businesses, Holly Springs plans to use the new infrastructure in other ways. State law allows the community to offer free Wi-Fi; the town will also lease dark fiber to third-party providers. According to the News article, the town has already entered into a 20-year contract with DukeNet, recently acquired by Time Warner Cable. DukeNet may expand the fiber to the Holly Springs Business Park for commercial clients.

The community's free Wi-Fi in public facilities is approximately 20 times faster than it was before the deployment, reports the News:

When the town activated the network on June 18, “People told us they could tell the difference immediately,” said Jeff Wilson, Holly Springs’ IT director.

According to the News, the fiber network allows the city to expand free Wi-Fi to more green spaces. Cameras at baseball fields now stream live video of games; parents and grandparents can watch activities online if they cannot attend games in person.

For more on the community and the project, check out Chris' conversation with Jeff Wilson in episode #107 of the Community Broadband Bits podcast.

Fibrant Signs Up 3,000th Customer, Increases Top Speed to Gig With No Rate Hike

Salisbury's Fibrant network recently signed on its 3,000th customer, reports WCNC from Charlotte. The publicly owned network also recently increased speeds for residential customers with no price hikes, reports BBP Mag. Households that were signed up for symmetrical 100 Mbps service for $105 per month will now have gigabit service for the same rate.

BBP Mag spoke with Dale Gibson, one of Fibrant's first gigabit customers:

“Generally when an Internet service provider gives a speed, it represents bandwidth, or a theoretical 'best effort' speed, not the 'throughput' or actual speed. My speed tests are consistently above 900 Mbps.” A network professional for over 20 years, Gibson added that typically even in the best test conditions, it is more common to see numbers in the 800s and, “Fibrant should be very proud of that 900 number.”

Other speed hikes include:

20/20 Mbps for $45 per month raised to 50/50 Mbps

30/30 Mbps for $65 per month raised to 75/75 Mbps

50/50 Mbps for $85 per month raised to 100/100 Mbps

The network has also revamped its video packages to include more channels, new HD options, and remote DVR. For a complete overview of Fibrant's new packages, visit their pricing page.

Holly Springs Finds Savings with Muni Fiber - Community Broadband Bits Episode 107

Holly Springs, a town of about 25,000 in the Triangle region of North Carolina, has built its own network to connect community anchor institutions and has an interest in using it to spur economic development and other community benefits but a 2011 law pushed by Time Warner Cable makes some of that more difficult.

City IT Director Jeff Wilson joined me for episode 107 of the Community Broadband Bits podcast. We discussed why they decided to build a municipal network and how they have just finished the actual build.

We also discuss the savings they anticpate from owning the network and how local residents were hopeful that the network could be expanded to connect homes and businesses before learning that state law restricted them from doing that.

Read our additional coverage of Holly Springs.

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 13 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 Waylon Thornton for the music, licensed using Creative Commons. The song is "Bronco Romp."

Charlotte Media Eyes Salisbury's Fibrant

WSOC TV in Charlotte recently looked at Salisbury's four-year-old Fibrant network. Reporter Tenikka Smith investigated what a municipal network could do for Charlotte. Charlotte is also one of the communities working with Google in hopes of having it expand to them. That interest has led AT&T to consider updating its comparatively pathetic DSL services as well.

Smith spoke with a Salisbury small business owner who switched to Fibrant in 2010. Rick Anderson-McCombs of the Sidewalk Deli noted fast speeds and high quality voice service from Fibrant. According to Anderson-McCombs' mother, Angenetta Dover, the deli also saves $30 - $40 per month compared to past service with the local incumbent. Dover also uses the service at her home and notices a significant improvement:

"Even (the) lowest speed and slowest speed is super compared to what we used to have to do," she said.

Robert Van Goen from Rowan County's economic development coalition, Rowan Works, believes a municipal network could be a smart investment for Charlotte. The network tells potential job creators that a community is "prepared to do business for the next 10, 15, 20 years and compete in the global marketplace."

WSOC TV compared prices; they found Time Warner Cable and AT&T offered basic triple-play bundles - up to 6 Mbps download - for $79 per month. Upload speeds, the real test for businesses, are typically much slower. Fibrant's lowest tier triple-play bundle offered 20 Mbps symmetrical service for $97 per month.

Saving money for better service is always a winning strategy. Local businesses often consider other benefits from municipal networks; Anderson-McCombs told Smith his motivation reached beyond financials:

“The main reason I got Fibrant was not so much to help my business, but help my town because I think it's very progressive of Salisbury to include Wi-Fi and Internet service in our utilities."

Below is an ad Fibrant created with local businesses describing the superior service of Fibrant phone. Though residents may be less enthusiastic about phone service, it is the lifeblood of many local businesses.

Video: 

New York Times Covers Fiber and Economic Development

In a recent New York Times article, reporter Kate Murphy shined a light on fiber's increasing role in economic development. Murphy discussed several of the same networks we have followed: Wilson, NC; Chattanooga, TN; Lafayette, LA; and Mount Vernon, WA.

Murphy acknowledged that successful companies are moving from major metropolitan areas to less populated communities out of necessity:

These digital carpetbaggers aren’t just leaving behind jittery Netflix streams and aggravating waits for Twitter feeds to refresh. They are positioning themselves to be more globally competitive and connected.

Murphy notes that countries where governments have invested in critical infrastructure offer more choice, better services, and lower rates. She also points to successful local initiatives, often in less populated communities where large private interests have not invested:

Stepping into the void have been a smattering of municipalities that have public rather than private utility infrastructures. Muninetworks.org has a map that pinpoints many of these communities. They are primarily rural towns that were ignored when the nation’s electrical infrastructure was installed 100 years ago and had to build their own.

Murphy spoke with several business owners that moved from large metropolitan areas to smaller communities because they needed fiber. For a growing number of establishments, fiber networks are the only kind that offer the capacity needed for day-to-day operations. Information security firm, Blank Law and Technology, moved to Mount Vernon to take advantage of its open access fiber network. It helps when customer service representatives live in your neighborhood:

“We investigate computer malfeasance and have to sift through terabytes of data for a single case,” Mr. Blank said. “The fiber connection is the only reason we are in Mount Vernon and the customer service isn’t bad because all you have to do is walk down the street and knock on the door at City Hall.”