Poulsbo, Washington, home to around 9,200 residents of Kitsap County, recently became the location of an "exercise in democracy" pilot project. Amy Phan of the Kitsap Sun, reports that the town is now home to a superfast wireless hotspot made possible by a new antenna installation courtesy of the the Kitsap Public Utility District (KPUD). According to the article:

The wireless hot spot on Fourth Avenue taps into Poulsbo's existing fiber-optic cables, which have been installed for more than a decade, and far exceeds most standard broadband speeds available to consumers.

[Stephen Perry, superintendent of telecommunication of Kitsap Public Utility District] said the antenna can output 300 megabytes per second — compared to standard speeds of three to 50 megabytes per second — with an estimated wireless range within a half-mile of the antenna. 

120 miles of fiber already weave through Kitsap County and installation of 100 more are planned, thanks to stimulus funding. The KPUD will manage and pay for the program.

The PUD hopes to also determine how users take advantage of the temporary free service with no filtering and no limits:

"If people had access to unfettered Internet, how would they use it? No one's really collected that data before. You really don't know about the antenna until you try it," said Perry, adding data collected is meant to track usage patterns and won't identify computer owners.

Dave Siburg of Kitsap PUD called the pilot program an "exercise in democracy."

The data collected may be used to determine an economic model for expansion of the KPUD's current telecommunications offerings. Also from the article:

Councilman Ed Stern, who pushed for the city to explore high-speed broadband earlier this year, said expanding broadband capabilities could mean a strengthened economy for the area.

With a large amount of employees in Poulsbo commuting to King, Pierce or Snohomish counties for work, he said, having reliable and fast broadband could allow those employees to work from home, and spend more money locally.

We have long argued that smart antitrust policy promotes investment and competition in the market. Allowing a few firms to consolidate too much power allows them to ignore our needs because we lack alternative service providers. In economic terms, they can use their market power to prevent market entry from innovative new firms.

Harold Feld recented provided more empirical evidence for our view by comparing the present cellular wireless market against that of 20 months ago. He notes new investment from abroad in T-Mobile and Sprint and that U.S. Cellular plans to expand its footprint; AT&T is planning upgrades in its spectrum holdings. Bottom line - investment is starting to happen, which was not the case a year ago. 

Feld breaks out details in FCC and DoJ activities to show the relationship. In addition to the DoJ and FCC mutual block of the AT&T/T-Mobile deal, Feld notes the FCC's new attitude regarding regulatory reform. From the Feld blog:

On top of this, the FCC sudden[ly] started getting all serious about regulatory reforms designed to keep carriers other than AT&T and Verizon in the game as serious players. This included not just the long-awaited data roaming order (which now looks like it will probably survive review by the D.C. Circuit after all), but also revisiting special access, 700 MHz Interoperability, and renewed interest in clarifying the spectrum screen/possibly reviving the spectrum cap. While the last three are still in progress, the fact that the FCC is even talking about them in a serious way is so radically different from what folks expected at the beginning of 2011 that it puts heart into investors and competitors who were looking for some sign that anyone in DC gave a crap or if competitive wireless would end up going the way of competitive telecom and competitive ISPs.

Feld acknowledges that there will be those that jump to conclusions and discourages an all-or-nothing viewpoint in favor of a more measured approach. Also from his blog post:

Citywide Internet will soon be available as a monthly service in Port Angeles on Washington's Olympic Peninsula. Mayor Cherie Kidd, Police Chief Terry Gallagher, and Councilwoman Brooke Nelson participated in a ceremonial "cable cutting" event last week. The event was to celebrate the new network, nicknamed "The Mesh." Arwyn Rice, of the Olympic Peninsula Daily News covered the event in a recent article.

According to the Metro-Net website, a $2.6 million Broadband Technology Opportunity Program (BTOP) grant funded part of the $3.7 million Wi-fi system. The network serves a dual purpose, serving public safety first responders and a separate level for public access. From the News article:

The public safety system allows police officers to track each other through the city so that they know where their backup is without having to call radio dispatchers.

They also can do their own searches on driver's licenses and license plates, check recent call histories and access reports, said Officer Erik Smith, who demonstrated the use of the system in his patrol car.

Eventually, the system will be patched into the city's security cameras and police car dashboard cameras — and potentially Port Angeles School District security cameras — so that officers will be able to monitor situations at City Pier from their cars at Lincoln Park, said Police Chief Terry Gallagher.

“The limitation is our imagination,” Gallagher said.

While access is free through October 31, OlyPen MetroNet will start offering a variety of plans on November 1. Mobile and fixed-point service will be available and range from $5.95 (some sources say $4.95) for one day to $37.95 per month. Every user will receive the first hour of Internet access free each day.

As we have often found, the spirit of collaboration and determination on a local level helped realize this possibility:

We have shared updates on Southwest Minnesota Broadband Services (SMBS) as they roll out their fiber routes in Jackson and surrounding towns. Now, we want to share info about their use of wireless to compliment the fiber network. According to the U-reka website, LocaLoop, Inc. and its subsidiary, SynKro Southwest, will soon be working with SMBS to expand SynKro 4G wireless fixed and mobile broadband Internet service to eight rural communities in the region.

SMBS and SynKro Southwest collaborated on a six-month trial installation in Bingham Lake. Additionally, the pair continued to build out the network in seven other nearby rural communities. From the U-reka article:

"Coming off the Bingham Lake trial, we look forward to delivering the same high quality network performance and user experience to underserved rural areas  across the SMBS service territory,” said Carl-Johan Torarp, founder and CEO of  LocaLoop. “We are expanding the network to complement SMBS’s broadband  service as well as providing their customers with mobile broadband Internet.”

SMBS received $12.8 million in BIP funds to develop an FTTH network to Bingham Lake, Heron Lake, Jackson, Lake Okebena, Round Lake and Wilder. This latest endeavor will offer even more coverage to the local residents. Maps and more on the SMBS website.

The Department of Justice released a statement on August 16th, that it will allow the controversial Verizon/SpectrumCo deal to move forward with changes. We have watched this deal, bringing you you detailed review and analysis by experts along with opinions from those affected. One week later, the slightly altered deal was also blessed by the FCC.

Many telecommunications policy and economic experts opposed the deal on the basis that it will further erode the already feeble competition in the market. In addition to a swap of spectrum between Verizon and T-Mobile, the agreement consists of side marketing arrangements wherein Verizon agrees not to impinge in the market now filled with SpectrumCo (Comcast, Time Warner Cable, Cox, and Bright House Communications).

Verizon has been accused of hoarding spectrum it doesn't need. The marketing arrangements constitute anti-competitive tools that the DOJ has decided need some adjusting. From the announcement:

In December, 2010, Verizon Wireless began operating its network via C-Block spectrum with licenses it acquired in the 2008 auction. In keeping with net neutrality rules unique to C-Block usage, Verizon agreed long ago that it would not block or limit consumers' ability to tether on their 4G LTE network.

Tethering allows a consumer to use a device, such as a smartphone, as a modem to funnel Internet access to an additional device. On July 31, the FCC agreed to end an investigation into whether or not Verizon Wireless had violated this rule. In exchange, Verizon Wireless would make a $1.25 million "voluntary contribution."  Verizon Wireless did not admit it broke the rules. The FCC's consent decree requires the practice cease and that Verizon Wireless implement policies to curtail the behavior.

The story began in 2011. Verizon Wireless began charging its customers an addition $20 per month to allow them to tether additional devices to their smartphones and called the feature "Mobile Broadband Connect."

The Free Press filed a complaint. The FCC began their investigation in October, 2011. From the Free Press website:

Free Press argued that by preventing customers from downloading these applications that allow customers to use their phones as mobile hotspots, Verizon violated conditions of its 700 MHz C Block licenses, the spectrum in which Verizon operates its LTE service. When Verizon purchased the licenses, it agreed to abide by conditions that it not “deny, limit or restrict” its customers’ ability to use the applications or devices of their choosing.

The company also asked the Google Play Store store to block Verizon Wireless customers from accessing software that would enable tethering. Google complied with the request, even though it has often advocated for net neutrality, but were not investigated because they are not an ISP.

If you are a current or potential Verizon customer, by now you know that you no longer have the option to order stand alone DSL. When the business decision became public knowledge in April, DSL Reports.com looked into the apparent step backward and found existing customers were grandfathered in but:

However, if you disconnect and reconnect, or move to a new address -- you'll have to add voice service. Users are also being told that if they make any changes to their existing DSL service (increase/decrease speed) they'll also be forced to add local phone service. One customer was actually told that he needed to call every six months just to ensure they didn't change his plan and auto-enroll him in voice service.

By alienating customers from DSL, Verizon can begin shifting more customers to its LTE service, which is more expensive. Susie Madrak, from Crooks and Liars, speculated on possible repercussions for rural America:

Rural areas could see the biggest impact from the shift, as Verizon pulls DSL and instead sells those users LTE services with at a high price point ($15 per gigabyte overages). Verizon then hopes to sell those users cap-gobbling video services via their upcoming Redbox streaming video joint venture. Expect there to be plenty of gaps where rural users suddenly lose landline and DSL connectivity but can't get LTE. With Verizon and AT&T having killed off regulatory oversight in most states -- you can expect nothing to be done about it, despite both companies having been given billions in subsidies over the years to get those users online.

The belief is that current DSL customers who don't want (or can't afford) the switch to the LTE service will move to Verizon's cable competition. Normally, losing customers to the competition is to be avoided, but when your new marketing partners ARE the competition, it's no big deal.