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How Telecom Monopolies Killed Competition in North Carolina With HB 129, Part 2 - Community Broadband Bits Podcast, Bonus Episode Eight

For the eighth episode of our special podcast series “Why NC Broadband Matters,” Christopher and his guests, Catharine Rice and Jack Cozort, continue their conversation on HB 129, North Carolina’s restrictive law that prevents local governments from investing in broadband infrastructure. The first half of their discussion focused on the years leading up to the passage of HB 129 in 2011. Today, Christopher, Catharine, and Jack talk about the bill itself, the influence of the telecom industry over the state legislature, and how HB 129 has impacted connectivity in North Carolina.

Catharine and Jack explain that local broadband authority became a partisan issue after the 2010 election, which flipped control of the North Carolina legislature to the Republicans. They share their experiences advocating against HB 129, explaining how legislators restricted public comments on the bill by limiting speaking time and rescheduling hearings and meetings. Jack tells Christopher that there were as many as 25 lobbyists representing telephone and cable companies at the state legislature pushing for HB 129. Catharine relates how corruption and a lack of transparency in government are the reasons why the telecom industry successfully got the bill passed.

Christopher and his guests also run through some of the provisions of HB 129, dissecting the telecom monopolies’ misleading arguments in favor of the bill.

This is the second half of a two part discussion. For part one, listen to episode 412 of the Community Broadband Bits podcast.

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We produced this episode and the “Why NC Broadband Matters” series in partnership with NC Broadband Matters, a nonprofit organization advocating for better connectivity across North Carolina.

This show is 32 minutes long and can be played on this page or via Apple Podcasts or the tool of your choice using this feed, at the Community Broadband Bits page, or at the NC Broadband Matters page. We encourage you to check out other "Why NC Broadband Matters" content at the podcast feed so you don't miss future bonus content that may not appear in the Community Broadband Bits Podcast feed.

Transcript below. 

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

Listen to other episodes here or view all episodes in our index. See other podcasts from the Institute for Local Self-Reliance here.

Thanks to Shane Ivers for the Music: What's The Angle? by Shane Ivers - https://www.silvermansound.com a Creative Commons Attribution (4.0) license.

How Telecom Monopolies Killed Competition in North Carolina With HB 129 - Community Broadband Bits Episode 412

We've written a lot about North Carolina's HB 129, the anti-competition law that prevents communities in the state from investing in broadband infrastructure. This week on the Community Broadband Bits podcast, Christopher dives deeper into the history of HB 129 with guests Catharine Rice, co-founder of NC Broadband Matters and project manager at the Coalition for Local Internet Choice, and Jack Cozort, a government relations consultant who has worked with the City of Wilson. In this first half of a two part conversation, Christopher and his guests discuss the years leading up to HB 129, which was passed in 2011, speaking frankly about the sway telecom lobbyists held over state legislators.

To start, Jack describes how Wilson decided to invest in its own broadband network Greenlight, after incumbent providers refused to partner with the city to upgrade the community. He goes on to explain how Wilson's decision led the regional broadband monopolies Time Warner Cable (now Charter Spectrum) and AT&T to advocate for legal restrictions on municipal broadband at the state legislature.

Catharine and Jack review some of the early bills ⁠— written by telecom companies and handed off to state legislators ⁠— that the monopoly providers introduced in an attempt to stop broadband competition. They share their involvement in those legislative fights and explain how difficult it was to counter the influence that the telecom industry had over politicians in both major parties. However, Catharine points out that there were also Democratic legislators during this time who defended local broadband authority and kept anti-competitive legislation from being passed.

In the November 2010 election, the North Carolina legislature shifted control to the Republican party. Christopher and his guests end the podcast by talking about how that set the stage for HB 129, which would be introduced the next year.

Today's episode is part one of two. Listen to the second half of this conversation on North Carolina's HB 129.

NC Hearts Gigabit logo

This is a special episode of the "Why NC Broadband Matters" podcast series, created in partnership with NC Broadband Matters, a nonprofit that's working to bring high-quality Internet access to all communities in the state. Previous epsiodes in the series touch on telehealth, the homework gap, and broadband mapping, among other topics relevant to connectivity in North Carolina.

This show is 56 minutes long and can be played on this page or via Apple Podcasts or the tool of your choice using this feed

Transcript below. 

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

Listen to other episodes here or view all episodes in our index. See other podcasts from the Institute for Local Self-Reliance here.

Thanks to Arne Huseby for the music. The song is Warm Duck Shuffle and is licensed under a Creative Commons Attribution (3.0) license.

"North Carolina State Capitol" by Jim Bowen via Flickr. Used under a Creative Commons Attribution (2.0) license.

North Carolina's Unique Broadband History and Lessons for Moving Forward - Community Broadband Bits Podcast, North Carolina Bonus Episode Four

We're starting off the new year with episode four of the new podcast project we're working on with nonprofit NC Broadband Matters. The organization focuses on finding ways to bringing ubiquitous broadband coverage to local communities to residents and businesses in North Carolina. The podcast series, titled "Why NC Broadband Matters," explores broadband and related issues in North Carolina.

As we look forward to a new year, we're also looking back with this week's guest, Jane Smith Patterson, a Partner with Broadband Catalysts. Jane has a deep love for North Carolina and a deep interest in science and technology. Throughout her life, she has put those two interests together to help North Carolinians advance human and civil rights, education and learning, and to advance the presence of high speed connectivity across the state. 

logo-nc-hearts-gigabit.pngJane's decades of experience at the federal, state, and local levels make her the go-to person to provide content for this episode, "North Carolina's unique broadband history and lessons for moving forward." She and Christopher discuss how the state has become a leader in science and technology, including the state's restrictive law limiting local authority. Lastly, Jane makes recommendations for ways to bring high-quality Internet access to the rural areas where people are still struggling to connect. The conversation offers insight into North Carolina's triumphs and challenges in the effort to lift up its citizens.

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

This show is 63 minutes long and can be played on this page or via Apple Podcasts or the tool of your choice using this feed, at the Community Broadband Bits page, or at the NC Broadband Matters page. We encourage you to check out other "Why NC Broadband Matters" content at the podcast feed so you don't miss future bonus content that may not appear in the Community Broadband Bits Podcast feed.

Transcript below. 

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

Listen to other episodes here or view all episodes in our index. See other podcasts from the Institute for Local Self-Reliance here.

Thanks to Shane Ivers for the Music: What's The Angle? by Shane Ivers - Creative Commons Attribution (4.0) license.

Image of Downtown Wilmington, North Carolina, as seen from across the Cape Fear River by Jason W. Smith [CC BY-SA 3.0]

Suddenlink's Bad Behavior in Pinetops May Indicate A Troubled Future: Legislature Sides With Big Cable

Rural Pinetop residents are getting a glimpse of  the treatment they are going to receive from Suddenlink,  even before the ISP has started offering service in the small North Carolina community.  According to locals, Suddenlink subcontractors are busting water mains, connecting fiber without homeowner permission, and spreading lies about the Town’s favored community-broadband provider, Wilson's municipal network, Greenlight Community Broadband.

A Bright Economic Future For A While

Back in 2015, this tiny, low income, town felt grateful to receive Fiber-to-the-home (FTTH), symmetrical gigabit Internet service from their electric provider, the municipal electric utility from neighboring Wilson. Suddenlink had turned their back on local residents for years, and before Greenlight began serving the community, a good day of Internet service from incumbent CenturyLink brought them 2 Mbps upload speed. 

With high-quality connectivity from Wilson’s Greenlight, the town began envisioning a new economic future. They recognized the importance of high capacity upload speed as an economic development tool to attract the professional and creative class. They wanted to attract doctors, lawyers, engineers, and digital media artists from Greenville and Rocky Mount to their town where the cost of doing business was low and the quality of life was high.

Tech entrepreneurs and other businesses community leaders in Pinetops hoped to attract need high capacity upload to share data heavy files, such as  x-rays, and blueprints from a home office or other place of business.

"Whose Side Are You On?"

North Carolina Editorial: State Restriction on Local Telecom Authority Has to Go

Approximately 20 U.S. states have some form of legal restriction that creates barriers when local communities want to develop publicly owned Internet infrastructure. In North Carolina, where the state experiences a severe rural/urban digital divide, people are fed up with poor service from influential telephone and cable companies. Folks like Ned Barnett, Opinion Editor from the News & Observer, are calling on elected officials to remove the state’s restriction so local governments can do all they can for better connectivity.

Things Must Change

Barnett’s recent editorial begins out of frustration as he describes how unreliable Internet access forced him to take pen to paper. His own connection prevented him from tending to emails, doing online research, and his phone service also suffered due to momentary loss of connectivity at his office. He goes on to consider how the annoying but temporary inconvenience to him is a way of life for many in rural areas of his state.

While North Carolina has many of the same challenges as other states in getting rural folks online — lack of interest from national ISPs, challenging geography that complicates deployment — Barnett correctly zeroes in on the state’s restrictive HB 129. The law prevents communities with existing broadband infrastructure from expanding to neighboring communities and puts requirements in place that are so onerous, they make it all but impossible for communities considering similar investments to move forward.

Barnett rightly points out that the true purpose of the law was to protect national ISPs from competition, securing their position as monopolies and duopolies. He describes the problems with the state's approach and what North Carolinians have faced in the aftermath:

For one, Internet access isn't a consumer product. It's as basic as access to a phone, electricity or indoor plumbing. Secondly, there isn't any real competition involved. Rural areas often are limited to one provider offering slow access.

The Problem is Real

Blair Levin Urges Repeal of North Carolina's Restrictive HB129

At a recent WRAL TechWire event, former Federal Communications Commission (FCC) chief of staff Blair Levin urged North Carolina communities to seek a repeal of a state law that restricts local telecommunications authority, reports WRAL TechWire.

“When the new General Assembly returns to Raleigh, tell the assembly to tear down the law that prevents faster, cheaper broadband,” Levin said in a keynote address at the WRAL TechWire Executive Exchange in Wilson, N.C. Wilson's municipal Greenlight network is among the first in the nation to offer high-quality Fiber-to-the-Home (FTTH) Internet access.  

Currently, North Carolina law HB 129 prevents Wilson from expanding its Internet access service area beyond Wilson County and discourages other communities from investing in similar infrastructure. HB 129 was the subject of a legal battle when the city of Wilson (pop. 50,000) wanted to provide Internet access to neighboring Pinetops (pop. 1,400) and other communities beyond the limitations of the state law. They challenged the law, as did Chattanooga, which faced slightly different restrictions in Tennessee.

In February of 2015, the FCC ordered that Wilson could serve communities beyond the county borders, but both states appealed, challenging the agency's authority. The federal appeals court reversed that ruling in August 2016.

Under the provisions of the North Carolina law, Wilson could lose it's exemption to offer service at all, but by temporarily providing free telephone and Internet access to Pinetops, they protect their exemption. Two state legislators have vowed to take action and try to get the state law changed during the next legislative session.

Transcript: Community Broadband Bits Episode 224

This is episode 224 of the Community Broadband Bits Podcast. ILSR research associate and MuniNetworks.org writer, H.R. Trostle, joins the show to discuss the recent report on North Carolina's connectivity and the importance of cooperatives. Listen to this episode here.

 

H.R. Trostle: The telephone cooperative are very used to serving these very sparsely populated rural areas in North Carolina. That's what they were designed to do. That's why they were made.

Lisa Gonzalez: This is episode 224 of the Community Broadband Bits Podcast from the Institute for Local Self-Reliance, I'm Lisa Gonzalez. Recently, we released a report focusing on the availability of high-quality Internet access in North Carolina. H.R. Trostle, a research associate at the Institute and one of our authors on MuniNetworks.org, analyzed data from several different sources and she's talking to Chris this week to discuss her conclusions. She and Chris, who co-authored the report with her, discovered that municipal networks and cooperatives have an important role to play in North Carolina. Take a few minutes to check out the report and check out the detailed maps that show the results of their analysis. The report is titled North Carolina Connectivity: The Good, The Bad, and The Ugly. It's available at ILSR.org and MuniNetworks.org. Now here are Chris and H.R. Trostle, from the Institute for Local Self-Reliance, discussing in detail their recent report and their findings on Internet access in North Carolina.

Christopher Mitchell: Welcome to another edition of the Community Broad Bits Podcast. Coming to you live today from the Institute for Local Self-Reliance offices in Minneapolis, with H.R. Trostle, the co-author of our new report on North Carolina. Welcome to the show.

H.R. Trostle: Thanks Chris, it's great to be here.

Christopher Mitchell: Hannah.

H.R. Trostle: Hi.

Christopher Mitchell: I thought we would start with a broad overview of what did the report cover.

North Carolina Connectivity: The Good, The Bad, and The Ugly

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North Carolina's digital divide between urban and rural communities is increasing dangerously in a time when high quality Internet access is more important than ever. Rural and urban areas of North Carolina are essentially living in different realities, based on the tides of private network investment where rural communities are severely disadvantaged. The state has relied too much on the telecom giants like AT&T and CenturyLink that have little interest in rural regions.

Download the Report

The state perversely discourages investment from local governments and cooperatives. For instance, electric co-ops face barriers in seeking federal financing for fiber optic projects. State law is literally requiring the city of Wilson to disconnect its customers in the town of Pinetops, leaving them without basic broadband access. This decision in particular literally took the high-speed, affordable Internet access out of the hands of North Carolina's rural citizens.

The lengths to which North Carolina has gone to limit Internet access to their citizens is truly staggering. Both a 1999 law limiting electric cooperatives' access to capital for telecommunications and a 2011 law limiting local governments' ability to build Internet networks greatly undermine the ability of North Carolinians to increase competition to the powerful cable and DSL incumbent providers. 

In the face of this reality, the Governor McCrory's Broadband Infrastructure Office recommended a "solution" that boils down to relying on cable and telephone monopolies' benevolence. What this entire situation comes down to is a fundamental disadvantage for North Carolina's rural residents because their state will not allow them to solve their own problems locally even when the private sector abandons them.

"We Just Can't Go Back In Time": Pinetops Calls For Repeal Of State Law

In a September 22nd press release, the community of Pinetops, North Carolina, called out their Governor as they lose access to high-quality Internet access. Read the full statement here:

A state law is forcing the termination of Gigabit Internet service to the small rural town of Pinetops, NC. Last week, members of the Wilson, NC City Council expressed their deep regrets as they voted to approve the city attorney’s recommendation to disconnect Wilson Greenlight services in Pinetops under the North Carolina law commonly known as H129 (S.L. 2011-84).

Wilson was able to bring fiber-to-the-home Gigabit service to our town in April 2016, after the FCC preempted H129 on the grounds that it is anti-competitive and creates barriers to the deployment of advanced telecommunications capacity. Under Governor Pat McCrory, North Carolina challenged that ruling in May, 2015 in the United States Court of Appeals for the Sixth Circuit and won a reversal last August.

Members of the Pinetops community are particularly distressed because the Gigabit service Wilson was delivering enabled Pinetops to compete with urban areas of North Carolina that get such Gigabit services from Google Fiber, AT&T, and Frontier. In Pinetops, in contrast, other sources of Internet service don’t meet the federal definition of broadband and are insufficient to support small business, home-based telework needs, and homework for students. The Gigabit network enabled the Town to begin developing new economic development plans to attract knowledge workers from nearby Greenville and Rocky Mount. That strategy is now impossible in light of the imminent disconnection of Gigabit services.

Fact Sheet On Rural Connectivity In North Carolina

The Coalition for Local Internet Choice North Carolina chapter (CLIC-NC) and the Community Broadband Networks Team here at the Institute for Local Self-Reliance (ILSR) have teamed up to create a new fact sheet: Fast, Affordable, Modern Broadband: Critical for Rural North Carolina.

This fact sheet emphasizes the deepening divide between urban and rural connectivity. The fact sheet can help explain why people who live in the country need services better than DSL or dial-up. This tool helps visualize the bleak situation in rural North Carolina and offers links to resources.

Rural North Carolina is one of the most beautiful places in the country but also one of the most poorly served by big Internet access providers. The gap between urban and rural connectivity is growing wider as large corporate providers choose to concentrate their investments on a small number of urban areas, even though 80 percent of North Carolina's counties are rural.

To add insult to injury, North Carolina is one of the remaining states with barriers on the books that effectively prohibit local communities from making decisioins about fiber infrastructure investment. CLIC-NC and ILSR encourage you to use the fact sheet to help others understand the critical need for local authority.

Download it here, share it, pass it on.

Learn more about the situation in rural North Carolina from Catharine Rice, who spoke with Chris in episode 184 of the Community Broadband Bits podcast.