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Chicago Aldermen Want to Explore Fiber Potential

Chicago is moving in the direction of using municipal fiber to improve connectivity for residents and businesses. According to the Chicago Sun Times, three Aldermen and the Vice Mayor recently introduced a Resolution calling for hearings on ways to use existing fiber assets for personal and commercial use. Text of Resolution R2015-338 [PDF] is now available online.

The City has flirted with a greater vision for its publicly owned infrastructure in the past, including Wi-Fi and fiber. In February 2014, the community released a Request for Qualifications for Broadband Infrastructure [PDF].

This time the City plans to collect information and educate leadership with hearings on ways to utilize the fiber that grace Chicago's underground freight tunnels. They also want to explore city-owned light poles and government rooftops as potential locations for wireless network equipment. From the article:

“These hearings would be a fact-finding mission to help the City Council fully understand the size and scope of Chicago’s fiber-optic infrastructure and explore how it could be shared or expanded to raise revenue for city coffers while making our city more competitive,” [Finance Committee Chairman Edward] Burke said in a press release.

Burke was joined by Zoning Committee Chairman Danny Solis, Economic Capital, Technology Development Committee Chairman Tom Tunney, and Vice Mayor Marge Laurino.

R2015-338 lists many of the communities we have researched as examples to follow, including Chattanooga, Wilson, Lafayette, and Scott County in Minnesota. In addition to exclusively municipal projects, the Resolution acknowledges partnerships between public entities and private organizations, regional projects, and statewide efforts. Clearly, Chicago is open to a variety of possibilities.

While creating more options for businesses and residents is a primary motivator, the City Council is also considering the potential for revenue:

“A Chicago broadband network would be an asset that could be monetized. During these challenging economic times, we need to examine all options to help balance the budget,” Tunney said in the release.

It is true that municipal networks often generate revenue in the long term. It is also true that they share one characteristic with private networks: it can take a significant number of years to reach that stage.

Bristol City Council Passes Resolution Supporting Bill to End Tennessee Muni Barriers

At its March 3rd City Council meeting, elected leaders in Bristol voted 4 - 1 to adopt resolution 15 - 8 reported TriCities.com. The resolution officially supports state legislation removing state barriers that prevent municipal electric utilities from offering Internet service beyond their electric service footprint. State Senator Janice Bowling and Representative Kevin Brooks are sponsoring SB 1134 and its companion HB 1303 [PDF].

Bristol Tennessee Essential Services (BTES) is one of the state's gigabit FTTH networks but like Chattanooga, is limited by state geographic restrictions. The recent FCC decision to overturn Tennessee and North Carolina state barriers has removed that legal provision but Bowling and Brooks want to make sure it happens and that Tennessee is able to embrace smarter policy without FCC intervention.

Bristol recognizes that its gigabit network provides a rare advantage in Tennessee. From the City Council agenda on the issue:

The service is an essential element of economic development, enhances educational opportunities, increases regional and global competitiveness, and provides a better quality of life. While we enjoy the benefits of being a “Gigabit Community”, there are many areas of Tennessee that lack access to high-speed broadband service. The ability to extend this service beyond the municipal electric service territory will provide an opportunity for customers to choose their provider and ensure a high quality of broadband service at a competitive price.

At the meeting, members of the Council noted that eliminating the restriction would allow BTES the ability to bring service to areas left behind by traditional providers. TriCites.com reported:

“This is David-versus-Goliath situation in that little, tiny BTES versus companies like Charter and AT&T have had the opportunity for years to develop places like Mountain City, Kingsport and Johnson City,” said Councilwoman Michelle Dolan. “Removing these restrictions would allow us to go into the cities that Charter and AT&T have not developed and for the city it’s a win-win situation.”

A PDF of the Resolution is available online and as a download below.

Community Broadband Media Roundup - March 20

FCC Outlines Plan To Crush Awful State Protectionist Broadband Laws: from the it's-about-time dept by Karl Bode, Tech Dirt

While net neutrality rules are designed to protect consumers from a lack of last-mile competition, the agency's moves on municipal broadband are intended to actually strike at the issue of limited competition at the root. As we've noted a few times, ISPs (with ALEC's help) have passed laws in twenty states preventing those towns and cities from deciding their own infrastructure needs for themselves. 

It's pure, unabashed protectionism: the bills do little more than protect regional duopolies from change while hamstringing local communities desperate for better service. Usually the laws are passed under the auspices of protecting taxpayers from themselves, ignoring that the bills' sole purpose is to protect duopoly revenues. 

TV and Internet Service Providers Deliver the Worst Customer Experience: Fifth Annual Temkin Experience Ratings Evaluates 293 Companies Across 20 Industries

The poster child for poor customer experience in these industries - Comcast - was not only the lowest-scoring TV service and Internet service provider, but it was also one of the lowest-scoring companies in the entire Ratings. It ranked 289th overall out of 293 companies for its Internet service and ranked 291st overall for its TV service.

Of the 17 companies that received "very poor" ratings (below 50%) across the 193 companies, five of them were from these two industries: Comcast for TV (43%), Comcast for Internet (45%), Time Warner Cable for Internet (47%), Charter Communications for TV (48%), and Time Warner Cable for TV (48%).

"Internet and TV service providers are awful to consumers. The lack of competition continues to fuel this bad experience epidemic," states Bruce Temkin, managing partner of Temkin Group.

 

California

Broadband coming to Orleans by Jessie Faulkner, Times Standard

The Karuk and Yurok Tribes have been collaborating to bring the speeded-up service to the Klamath River communities of Orleans, Weitchpec, Wautec, Johnsons as well as Orick. A $6.6 million California Public Utilities Commission grant, awarded in October 2013, is financing the project. The tribes provide matching funds.

Colorado

Fort Collins eyes starting broadband Internet service by Nick Coltrain, The Coloradoan

If the city of Fort Collins made a sound while examining the possibility at offering its own Internet service, it'd be the chirps and whirrs of a 56K modem — Almost connected but with no guarantee of success. 

Minnesota

Businesses would be able to tie into countywide broadband by John Gessner, Sun This Week

Scott County has a high-speed, fiber optic network available for businesses and Internet service providers to tap into.

Neighboring Dakota County doesn’t. One result? Up to 10 companies that were wooed by Dakota County communities instead chose Scott County for its access to limitless bandwidth, according to Craig Ebeling.

Fiber Optic Project Moves Forward: KDUZ

Ten city councils and a standing room only crowd packed the United Farmers Cooperative Berdan Center on Monday for a public hearing and adoption of a tax abatement resolution to fund a loan to the Renville-Sibley County Fiber Joint Powers Agency for the RS Fiber Cooperative.

Maine

Broadband companies showing interest in Sanford by Ellen W. Todd, Sanford News

The City of Sanford, in collaboration with the SREGC, intends to finance and own a fiber-optic network connecting 80 community institutions and private enterprises — businesses, the hospital, municipal facilities, the mill complex, industrial parks, schools — in Sanford-Springvale.

Last year, the SREGC commissioned a study on the feasibility of bringing broadband (fiber-optic) communications access to the city. The company that did the study — Tilson Technology Management company of Portland — concluded that broadband access has the potential to add “between $47 and $192 million to the Sanford-Springvale region’s economic output over the next ten years.” 

Montana

Lawmakers consider issuing bonds for broadband expansion by Alison Noon, The News Tribune

New Hampshire

Editorial: Fast internet could be a boon for Concord

Creating a truly high-speed, affordable municipal internet network could be a pipe dream – or it could be a pipeline to a more vibrant Concord with a booming economy and a growing population of young entrepreneurs and knowledge workers.

New York

County touts pros of Municipal Broadband System WKBW-7

Erie County's Broadband Committee released a new report Wednesday touting the pros of building a Municipal Broadband System.

Erie County Legislator calls for faster internet by Mark Belcher, News 4 Digital Producer

“A municipal broadband network could be our generation’s great infrastructure project, like the Erie Canal or the Hoover Dam,” Burke said.

Cayuga County's high-speed Internet needs, state broadband initiatives discussed at Wednesday Morning Roundtable by Robert Harding, Auburn Citizen

According to Batman, what started out as a few towns became a larger collaboration to find a high-speed Internet service provider for the area. He said the group contacted these companies with a few ideas, including a public-private partnership. 

Unfortunately, there wasn't a lot of interest in such a venture.

"It simply is not a viable alternative," Batman said. "It simply is too expensive to serve me and my neighbors without financial incentives and support."

North Carolina

Community broadband debate centered in a North Carolina town by Renne Schoof, McClatchy Washington Bureau

“You don’t realize how fortunate you are to live in an urban setting in my district until you go into a remote area and have no access to broadband or to cellular telephone,” he said.

Tennessee

Rural Tennessee counties need broadband and internet service too by Dave Shepard, Columbia Daily Herald

The battle is typical of the Big Guys (telecommunications companies) verses the Little Guys (Municipal Electric Providers). My rural district which is comprised of 3 rural counties, Dickson, Hickman, and Maury, need expanded broadband service to make us competitive for industrial and business recruitment. We need expansion of broadband service into unserved areas to help our students do homework assignments and our residents to connect to a high speed internet service for business and pleasure. This service is already available to our state’s residents in densely populated areas all over the state of Tennessee.

My rural counties and constituents need broadband and internet service too, and I plan to vote to help them get it.

BTES adopts resolution to support legislation of municipal broadband by Tammy Childress, Bristol Herald Courier

The Bristol Tennessee Essential Services board adopted a resolution Wednesday to support legislation for municipal broadband.

City County approved a similar resolution earlier this month.

Louisiana Municipal Association Passes Resolution in Favor of Restoring Local Authority

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Local Tennessee Communities Rally Behind EPB

As the FCC contemplates the fate of the Chattanooga EPB's ability to expand to surrounding communities, some of those Tennessee communities are publicly announcing their support. The Town of Kimball and Marion County, both part of the Chattanooga metro area, have passed resolutions asking state legislators to reconsider Tennessee's anti-muni law.

The Times Free Press reports that Kimball's Board of Mayor and Alderman unanimously and officially asked their state officials to introduce legislation enabling local authority. They requested action as early as the next legisaltive session.

Marion County passed a similar resolution in August - also unanimously. According to Kimball's City Attorney Bill Gouger:

"It is a situation where there are providers out there who would like to extend fiber-optic cable and high-speed Internet-type systems throughout our county," Gouger said. "The simple fact is, right now, our state laws make that really difficult to do, if not impossible."

County Mayor David Jackson is reaching out to the other municipalities in Marion County to increase support. From the article:

High-speed Internet access is "very important" for the entire county, said Jackson.

"It would, hopefully, give us another edge in getting new industry and other businesses to our county," he said. "It [quality Internet access] is very vital. We've got some industries now that are really struggling because they have limited Internet access."

Gouger said commercial and industrial developments are making high-speed Internet access a "requirement" for setting up shop in rural areas like Marion now.

"If we can't get those types of things throughout our county, it's going to disqualify us from some future growth," he said. "That's the whole purpose of this resolution."

Oklahoma's Sallisaw Passes Resolution to Support FCC As It Considers Preemption

Sallisaw, home of DiamondNet, is the latest community to publicly express its desire to put telecommunications authority in the hands of the locals. On July 14, the Sallisaw Board of City Commissioners approved Resolution 2014-17 in support of the FCC's intention to preempt state anti-muni laws.

A Resolution Supporting Telecommunications Infrastructure For Local Governments

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, community/municipal broadband networks provide opportunities to improve and encourage innovation, education, health care, economic development, and affordable Internet access; and

WHEREAS, historically, the City of Sallisaw has ensured access to essential services by providing those services that were not offered by the private sector at a reasonable and competitive cost; and

WHEREAS, in 2004 the City of Sallisaw took steps to construct its own Fiber to the Premise telecommunications system and now provides the community with quality state-of-the-art broadband services including video, High Speed Internet and telephones services, that otherwise would not be available today; and 

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

WHEREAS, 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 Board of City Commissioners of the City of Sallisaw, Oklahoma, supports FCC efforts to ensure local governments are able to invest in essential telecommunications infrastructure, if they so choose, without state-imposed barriers to discourage such an approach.

ADOPTED by the Governing Body on 14th day of July, 2014.

When City staff began researching the possibility of a municipal network in 2002, they discovered that dial-up was the only option for residents; businesses had the option of T1 connectivity. At the time, a coaxial or hybrid coax/fiber system were considered, but Sallisaw went with fiber to future-proof the network.

In an undated interview with the Oklahoma State University Cooperative Extension Service, network staff commented on the benefits for the community:

The key benefit of the City owning this system is that the revenue stays in the community. Our current annualized revenue is more than $1.5 million before expenses. As our customer base and revenue grows we will begin to see more net revenue after expenses, and that net will go to other non proprietary city services.

From DiamondNet FAQs:

The community of Sallisaw owns the FTTH system and its employees are residents of the community. In the past, the cable television provider in the community experienced numerous ownership and name changes, averaging about one every four years. DiamondNet will have one name and one owner for the life of the system. As your neighbors, we strive to provide you with excellent service. When you need help, just pick up the phone or come see us on the main floor at City Hall on Choctaw Street. We are here to serve you. 

Chattanooga Will Ask FCC to Preempt State Barriers in Tennessee

Since January, when the DC Circuit Court of Appeals suggested the FCC has the authority to preempt state anti-muni laws, local communities have publicly supported the notion. Chattanooga's Electric Power Board (EPB) will join those communities when it petitions the FCC to preempt similar laws in Tennessee, reports The Center for Public Integrity.

Danna Bailey, vice president of corporate communication at EPB recently told The Center:

“We continue to receive requests for broadband service from nearby communities to serve them,” Bailey said. “We believe cities and counties should have the right to choose the infrastructure they need to support their economies.”

Chattanooga, one of the publicly owned networks that have inspired FCC Chairman Tom Wheeler, has proved itself as a strong economic development tool. According to the article:

A day after his meeting with Berke, Wheeler wrote in his blog, “I believe that it is in the best interests of consumers and competition that the FCC exercises its power to pre-empt state laws that ban or restrict competition from community broadband. Given the opportunity, we will do so.”

A number of other communities with municipal networks, or in the process of deploying them, have passed Resolutions that support the FCC:

In addition to communities with firsthand experience, the American Public Power Association (APPA) also passed a Resolution in June, urging Congress, the FCC, and the Obama Administration to unequivocally support:

…the ability of local governments, including public power utilities, to provide advanced communications services that meet essential community needs and promote economic development and regional and global competitiveness. 

The U.S. Conference of Mayors passed a similar Resolution at its annual meeting in June, which read:

BE IT FURTHER RESOLVED, that the US Conference of Mayors recommends that the FCC preempt state barriers to municipal broadband service as a significant limitation to competition in the provision of Internet access.

Soon after, a coalition from the National Association of Telecommunications Officers and Advisors (NATOA), the National League of Cities (NLC), and the National Association of Counties (NACo) joined together for a letter of support to Chairman Wheeler:

The importance of Internet choice at the local level has never been more important. In many places in the U.S, locally-driven projects—including innovative partnerships with private sector companies—have demonstrated that local creativity and local authority is a viable means by which new next-generation broadband infrastructure can emerge.

Fortunately, support is also coming from DC. In late June, a collection of Senate and House Members penned a letter to Chairman Wheeler, asking him to take action and begin the process. In a statement fully supported by the Institute for Local Self-Reliance, the Members wrote:

Communities are often best suited to decide for themselves if they want to invest in their own infrastructure and to choose the approach that will work best for them. In fact, it was the intent behind the Telecommunications Act of 1996 to eliminate barriers to entry into the broadband market and promote competition in order to stimulate more innovation and consumer choice. We urge you and your colleagues to utilize the full arsenal of tools Congress has enacted to promote competitive broadband service to ensure America’s communities obtain a 21st century infrastructure to succeed in today’s fiercely competitive global economy.

Local communities, regional coalitions, and federal leadership all recognize the importance of local Internet choice. The country is ready for the next step, Chairman Wheeler. We support you!

U.S. Conference of Mayors Passes Resolution to End State Barriers

On June 22, Mayors from around the country gathered at the U.S. Conference of Mayors 82nd Annual Meeting. Members of the Standing Committee on Transportation and Communications voted to combine Resolution #115 "Net Neutrality" and #114 "Preserving a Free and Open Internet."

Resolution #115 was of particular interest to community broadband advocates because it called on the FCC to preempt state laws erecting barriers to local authority.

The final product, officially approved by the USCM, retained the language supporting Chairman Wheeler's intention to help smooth the road for publicly owned networks:

BE IT FURTHER RESOLVED, that the US Conference of Mayors recommends that the FCC preempt state barriers to municipal broadband service as a significant limitation to competition in the provision of Internet access.

Resolution #115 was introduced by Mayor Paul Slogin of Madison, Wisconsin.

APPA Adopts Policy Resolution Supporting Municipal Broadband Services

As the FCC considers its next move in the question of local telecommunications authority, a growing number of organizations are expressing their official support. The American Public Power Association (APPA) recently passed a resolution supporting the doctrine that local communities should not be precluded by states from investing in telecommunications infrastructure.

The APPA official resolution, approved by members on June 17, urges Congress, the FCC, and the Obama Administration to officially support the ability for public power utilities to provide advanced communications services. The resolution states:

That Congress should state in clear and unequivocal language that it supports the ability of local governments, including public power utilities, to provide advanced communications services that meet essential community needs and promote economic development and regional and global competitiveness. 

You can read the entire resolution, calling for updates to the Telecomunications Act of 1996, at the APPA website.

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.