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Community Broadband Media Roundup - June 15, 2015

This week's big news came out of Washington, specifically Seattle. The city just published a report examining the feasibility of a Chattanooga-type citywide municipal fiber network. The report and related materials are available here; read the news release here. In short, duplicating a Chattanooga-type approach appears too risky given the likely response from incumbents Comcast and CenturyLink.

Seattle

Public Internet is supposed to lower prices. In Seattle, it could work too well by Brian Fung Washington Post

Is Muni Broadband Feasible in Seattle? Not Likely, Report Finds by Colin Wood, GovTech

The numbers don't bode well for proponents of municipal broadband in Seattle, but the city has other plans.

“The broadband market has been changing incredibly fast just in the past six months, since the president mentioned the need for strong broadband access in his State of the Union address," he said. "And we’re starting to see some interesting joint ventures that allow cities to meet their policy objectives around equity and around economic development through broadband."

Seattle councilmember calls for ‘mass citywide movement’ against Comcast and CenturyLink in support of municipal broadband by Taylor Soper, Geekwire

GeekWire Radio: Amazon meeting hijacked; Twitter shakeup; and the future of municipal broadband by Todd Bishop, GeekWire

Cost of municipal broadband for Seattle less than estimated by Daniel Beekman, Seattle Times

Building a municipal broadband network in Seattle wouldn’t cost as much as the city once thought, but the city would still need additional funds. 

Bad News For Municipal-Run Broadband Internet by Ross Reynolds, KUOW

Report says municipal broadband too expensive for Seattle to build alone, Capitol Hill Seattle Blog

Media Roundup By State

Missouri

Gigabit-speed Internet comes to downtown St. Louis By David Nicklaus, St. Louis Today

New York

A New York State of Megabits by Susan Crawford, Backchannel

Will a half-billion dollar investment in internet infrastructure put NY in the national lead? Only if its leaders put muscle behind the dollars.

North Carolina

For Wilson's Greenlight Community Broadband, fiber waiting game in full swing by Lauren K. Ohnesorge, Triangle Business Journal

The interest is there, specifically from farmers, he says. One current Greenlight customer wants to expand his commercial farming operation into an adjacent county, and needs the high-speed service to run the business, Aycock says.

“It’s not just about the residential folks in the rural areas,” he says. “It’s also about agriculture."

Washington

High Tech, High Rec: Pend Oreille County works to connect work with play by Mike McLean Spokane Business Journal 

The Community Network System opens the option for people to live in Pend Oreille County and have access to a rural setting or larger tracts of land, he says.

Alex Stanton, a principal at Newport-based information technology company Exbabylon LLC, says, “Having fiber makes it possible for me to do my job.”

It’s also a big selling point when it comes to recruiting employees, Stanton says.

Without the fiber network, it was more difficult to convince qualified IT candidates to come to Newport.

“A lot of talented people are living in Spokane, Coeur d’Alene, Liberty Lake, and Seattle,” he says. “Most highly technical people want really good Internet service at home. It’s so accessible in metropolitan areas, it’s become a staple commodity.”

North Carolina Files Petition Opposing FCC Ruling to End Anti-Muni Laws

It took a while, but the State of North Carolina finally decided to take its turn at the throat of the FCC. Attorneys filed a Petition for Review in the 4th Circuit Court of Appeals similar to the one filed by the State of Tennessee in March. The Petition is available for download below.

Our official comment:

"Attorney General Cooper must not realize the irony of using state taxpayer dollars to ensure less money is invested in rural broadband, but we certainly do," says Christopher Mitchell with the Institute for Local Self-Reliance. "State leaders should stand up for their citizens' interests and demand good broadband for them, rather than fighting alongside paid lobbyists to take away those opportunities."

Like Tennessee, North Carolina makes an attempt to stop the FCC's well-considered Opinion and Order by arguing that the FCC overstepped its authority in violation of the Consitution. The FCC addressed this argument in its Opinion and Order along with a myriad of other potential arguments. For detailed coverage of the FCC's well-considered decision, we provided information on highlights of the decision back in March.

According to WRAL, Wilson is taking the new development in stride:

The City of Wilson was not surprised that North Carolina sued.

"We are aware of the suit," said Will Aycock, who manages the Greenlight network. "We knew that this would be an ongoing process."

The Attorney general's has not contacted Wilson about the suit, he added.

We have to wonder if North Carolina is a bit embarrassed in arguing that rural areas should not be allowed to build their own networks even as the metro regions in Charlotte and the Triangle are seeing gigabit investment. State elected officials in North Carolina seem committed to two-tier Internet access: fast for the metro and stiflingly slow in rural regions.

"Wilson filed this petition [last year to restore local authority] not with immediate plans to expand into its rural neighboring communities, but to facilitate the future advancement of its critical Gigabit fiber-optic infrastructure over the long term."...Wilson does not expect to incur any legal costs related to the North Carolina suit, Aycock said. "We told our story," he explained.

Unfortunately, this is another example of big telecom dollars asserting influence over  state leaders. Wilson's Greenlight has proven itself over and over again to be an economic development tool, a way for the municipality to save precious public dollars, and an agent to encourage better connectivity for citizens

What Does It Mean to Be A Gigabit City? Sharing Positive Outcomes Together (SPOT)

In North Carolina, Wilson’s Greenlight gigabit fiber network is doing everything it can to ensure everyone benefits from this important municipal investment. The city-owned network is a key partner in a digital inclusion program, Sharing Positive Outcomes Together (SPOT), which focuses on the children least likely to have high quality Internet access in their homes.

Though the digital divide remains a serious policy challenge, Wilson Greenlight and SPOT demonstrate s that solutions can be inspiring and fun. 

Training With a 4-Dimensional Approach

SPOT is an after-hours educational program focused on children ages 5 to 18 and attracts youth from all backgrounds, including those who are homeless or fostered to those with professional parents burdened by demanding work schedules. Among other components, its mission is to promote an atmosphere of accountability, confidence, and self-esteem. SPOT invites its children to dream, be “ambitious, inspired, high school graduates,” while “addressing and closing society's darker cracks that way too many young lives fall into.” “Leave it at the door and come grow” is part of its motto.

To reach such lofty goals, SPOT uses a four-dimensional approach called “project-based learning.” This New Tech School method requires that all elements of STEAM (science, technology, engineering, math and the arts) are part of the program and must utilize technology. According to SPOT’s Executive Director, Matt Edwards, “Learning is activity-based. Kids learn by seeing, touching, doing, and  incorporating technology into their program … and everything is interactive and Internet oriented with kids.”  Embodying this approach, SPOT recently won a $53,000 grant from the state of North Carolina to realize its 21st Century Learning Initiative. The initiative  will hinge on access to high capacity bandwidth and wireless access throughout its 30,000 square foot former Tabernacle church building. 

SPOT Kids at computers

The  Kids Are Teaching Us

“Let’s be honest,” explained Edwards, 
“When it comes to technology, the kids are teaching us.” Adults can now be a hurdle  to closing the technology side of the digital divide. “We put our kids in a box and think they can’t learn this because they are kindergarteners. I can tell you now. My kindergarteners and first graders probably know more about computers than my high schoolers.” A first grader or kindergartener will be stumped on a project, and “you’ll have another one go over there and show them how to look something up. You just sit back and watch. I mean, it is awesome.” This means in the computer lab, SPOT only needs an advisor or a volunteer, not a computer teacher. 

Putting the World in their Hands and Guiding Them

SPOT’s Executive Director described how his experience in closing the digital divide is on a whole new level. “The kindergartner today, they are going to be able to look at their computer and say ‘Find me (the game) Roadblocks’  and the computer will find it. You don’t need to teach the kids how to use the computers and the keyboards and the mouse, you just need to get them access and guide them on how to learn and utilize them in different ways...Get them the iPad. Put the protections on it and let them go. Our role is to guide.” With high capacity broadband, the world is in their hands. “We make sure they go to the best part of the world.” 

Overall, for SPOT, closing the digital divide is about teaching critical thinking, team work, and providing the bandwidth to keep up with the speed of their young minds. Wilson’s Greenlight community owned fiber network is part of that process by providing SPOT no-cost, 75 Mbps upstream and downstream broadband speeds. 

“Five years ago my grants would talk about the technology component needed to combat the technology divide. I don’t use that terminology anymore. It has changed to how do you use technology properly for advancement of our students and kids to enhance critical thinking … and teamwork. When you go out into the work place, very seldom are you an individual worker. You are going to have to get along with different people, work in groups, and solve difficult problems.”

SPOT’s activity-based, STEAM dimension locks into that teamwork. So the program’s focus is not as much on obtaining one to one computers, but having the children work in teams on whatever the project is. 

Greenlight Logo

And Then, of course, There’s Video

Closing the digital divide also means incorporating video, because “theirs is a world of daily Youtubes.” SPOT gives its children access to Kindle HDs where they can push a button, step back and do a video recording. “We teach them how to do it and work with the teenagers to control the uploading...They love watching themselves run in sports...dancing to music...discussing topics, like elections.”  

According to Jeff Fox, volunteer and IT Director, SPOT’s new 21st century classroom will allow students to beam images from their smart phones and tablets spontaneously to flat screens circling the room. The old divide between teachers and students dissolves. With the devices and the speed, everyone becomes a teacher. “It’s such an opportunity,” said Fox. “I’m hooked.” 

But video, especially uploading, requires much more bandwidth and, according to Edwards, “a third-grader’s mind goes very fast.”

“Greenlight’s symmetrical speeds keep up... most of the time,”  he laughs.  “I mean, [on the old system] there was a time when you could walk away, have lunch, and it would still be loading when you returned. Because Greenlight’s signal is strong, it makes the program stronger in all its facets.” 

This all makes sense to the General Manager of Greenlight, Will Aycock, who notes that enhancing the quality of life in Wilson is part of their mission. “Here is yet another example, where our community-owned network, is SPOT on. We give back to the community to benefit future generations, because we are the community.”

FCC Opinion and Order Striking Down Local Authority Limits in TN and NC: Highlights

The FCC has found that it has the authority to remove aspects of Tennessee and North Carolina law that limit local authority to build or expand Internet networks. In short, states seem to retain the authority to restrict municipalities from offering service at all. However, if states allow local governments to offer services, then the FCC has the power to determine whether any limitations on how they do it are a barrier to the deployment of advanced telecommunications services per its authority in section 706 of the Telecommunications Act.

The FCC has removed a restriction in Tennessee law that prevented municipalities with fiber networks from expanding to serve their neighbors, per a petition from Chattanooga.

In North Carolina, the FCC has removed multiple aspects of a 2011 law, HB 129, that effectively outlawed municipal networks by presenting local governments with a thicket of red tape, including territorial restrictions on existing networks. The city of Wilson had petitioned the FCC for this intervention. 

Listen to our podcast with Jim Baller about this decision.

See the Institute for Local Self-Reliance Press Release on the Opinion and Order for more. If you don't want to read the full order, we pulled out some key paragraphs and sorted them for your benefit!

 

Key Paragraphs in the FCC Decision

We selected some of the most important passages with references to the original Memorandum Opinion and Order. Look for these passages as you read the original FCC doc [PDF].

Communities Around Chattanooga and Wilson Need Better Connectivity:

43. Numerous commenters favor preemption because they wish to obtain service from EPB or Wilson but are unable to do so, and the maps and data discussed above illustrate that communities surrounding EPB’s and Wilson’s current areas of broadband service have far fewer choices for advanced telecommunications capability than the national average. This suggests that further expansion could generate improved levels of investment and competition in these locations. (pp 23-24)

See charts on pages 15 and 16, 21 and 22 showing areas around Wilson and Chattanooga lag national average on Internet access for both basic and advanced services.

 

Characterizing the North Carolina Barriers to Municipal Networks:

3. In North Carolina, the restriction takes the form of a series of costly hoops through which a service provider must jump.  Although characterized as intended to “level the playing field” with private providers when passed, it is clear that the combination of requirements effectively raises the cost of market entry so high as to effectively block entry and protect the private providers that advocated for such legislation from competition.  (p. 4)

14. We also find that North Carolina’s H.B. 129 falls within our authority to preempt under section 706.  H.B. 129 does not prohibit service by municipal entities — indeed it explicitly permits service. (p. 6)

113. Taken together, these purported “level playing field” provisions single out communications services for asymmetric regulatory burdens that function as barriers to and have the effect of increasing the expense of and causing delay in broadband deployment and infrastructure investment. (p. 51)

62. However, even if we focus on taxpayer protection, as some request, the evidence before us suggests that the Tennessee and North Carolina laws before us actually increase the likelihood of failure because of the barriers that they erect to the successful deployment of broadband infrastructure (p.31)

98. … Indeed, the North Carolina Department of State Treasurer Local Government Commission recognized this in the legislative history of H.B. 129 when it noted that “the boundaries set forth in the PCS weaken the financial viability of [the Greenlight and Fibrant] broadband systems.” (p.45)

103. We therefore find that the exemption for “unserved” areas contained in 160A-340.2(b), is not consistent with our analysis of marketplace realities–both with respect to when H.B.129 was enacted, and especially with respect to our recent findings in the 2015 Broadband Progress Report reflecting evolving technology and consumer expectations. Under H.B.129, an area qualifies as “unserved” if at least 50 percent of the households do not have access to service at download speeds of at least 768 kbps while, in sharp contrast, under the Commission’s current benchmark companies receiving Connect America funding for fixed broadband must serve consumers with speeds of at least 10 Mbps for downloads and 1 Mbps for uploads;and areas are “unserved” by advanced telecommunications capability if they do not have access to service with speeds of at least 25 Mbps / 3 Mbps. As a result of the significantly lower speed thresholds adopted in H.B.129 compared to any of the above standards, very few areas in North Carolina will qualify as “unserved” despite the fact that many areas do not meet the standards articulated above. Given that Congress has directed us to carefully evaluate broadband deployment in our role as the regulator of interstate communications by wire, we find that our speed thresholds are the appropriate metric by which to evaluate whether an area is “unserved,” not the standard contained in H.B.129. (p.47)

 

Characterizing the Tennessee Barrier to Municipal Networks

13. The territorial restriction in Tennessee Code Section 601 serves only to restrict municipal electric providers from providing broadband service on fiber networks that they are already authorized to build statewide…  It serves only to effectuate state communications policy preferences by enforcing inefficiency and protecting incumbents from competition. (p.6)

62. However, even if we focus on taxpayer protection, as some request, the evidence before us suggests that the Tennessee and North Carolina laws before us actually increase the likelihood of failure because of the barriers that they erect to the successful deployment of broadband infrastructure. (p.31)

 

Municipal Networks Improve Internet Access Services and Competition

Footnote 139: We note that EPB vastly increased the broadband speeds available to those within its service territory while generating revenue from its broadband service without cross-subsidization from its electrical service, indicating that there was substantial unmet demand.  (p.25)

47. … In other cases, even in the absence of market failure, communities may find that meeting additional unmet demand for broadband serves important policy priorities.  For instance, the municipal provider may have both the incentive and means to serve those broadband needs that are so widely dispersed in the community they would not show up on the balance sheet of any private firm. (p.25)

 

Relevant to Barriers in Other States

16. While the present Memorandum Opinion and Order (Order) only addresses the EPB and Wilson Petitions, the Commission will not hesitate to preempt similar statutory provisions in factual situations where they function as barriers to broadband investment and competition. (p.6)

60. Some commenters argue that municipal entry distorts the marketplace because the municipality functions as both regulator and competitor and could use its authority anti-competitively. This argument fails because these commenters are unable to identify any compelling evidence that this is an actual problem in Tennessee or North Carolina (or elsewhere). (p.31)

62. However, even if we focus on taxpayer protection, as some request, the evidence before us suggests that the Tennessee and North Carolina laws before us actually increase the likelihood of failure because of the barriers that they erect to the successful deployment of broadband infrastructure (p.31)

79.[Regarding potential barriers to telecom-related services that may not solely be Internet access] -  … that “a provider’s ability to offer video service and to deploy broadband networks are linked intrinsically… We recognize that providers may not always have a business case for building a network unless they can optimize revenue by bundling multiple services. (p.39)

Footnote 329: As discussed above with reference to EPB and Tennessee, the restrictions on the provision of bundled services undermines a provider’s ability to provide broadband successfully due to the strong customer preference for bundled offerings (p.53)

 

Regarding FCC Authority to Preempt State Laws:

146. To put it plainly, section 706 authorizes the Commission to displace state laws that effectuate choices about the substance of communications policy that conflict with federal communications policy designed to ensure “reasonable and timely” deployment of broadband. (p.62)

141. … Before addressing whether section 706 authorizes preemptions of laws regulating municipalities as broadband providers, we first address whether it authorizes preemption under any circumstances; for example, whether it would reach state laws that regulate broadband provision by purely private entities.  Take, as an illustration, a hypothetical state law that prohibited cable-based broadband providers from offering broadband capacity greater than that offered by wireless broadband providers.  We think that the answer in that instance would be clear. Such a law would prevent cable-based broadband providers from competing based on superior bandwidth, which in turn could cause such providers to conclude that they could not make an economic case for increasing the capacity of their network in certain communities. (p.59)

143. … And section 706(b) uses at least equally urgent language, requiring us to continually reappraise deployment, and mandating that we “shall take immediate action” when necessary by “removing barriers to infrastructure investment and by promoting competition in the telecommunications market. (p.60)

11. We find that section 706 authorizes the Commission to preempt state laws that specifically regulate the provision of broadband by the state’s political subdivision, where those laws stand as barriers to broadband investment and competition.  A different question would be presented were we asked to preempt state laws that withhold authority to provide broadband altogether.  But where a state has authorized municipalities to provide broadband, and then chooses to impose regulations on that municipal provider in order to effectuate the state’s preferred communications policy objectives, such as the protection of incumbent ISPs, such laws fall within our authority to preempt.  (p. 5)

147. But where a state has authorized municipalities to provide broadband, and then chooses to impose regulations on that municipal provider in order to effectuate the state’s preferred communications policy objectives, we find that such laws fall within our authority to preempt.  To take an example, where a state allows political subdivisions to provide broadband, but then imposes regulations to “level the playing field” by creating obligations apparently intended to mirror those borne by private providers, it does so in order to further its own policy goals about optimal competitive and investment conditions in the broadband marketplace.  The states here are deciding that incumbent broadband providers require protection from what they regard as unfair competition and regulating to restrict that competition.  This steps into the federal role in regulating interstate communications.  Where those laws conflict with federal communications policy and regulation, they may be preempted.  We thus interpret sections 706(a) and 706(b) to give us authority to preempt state laws that regulate the provision of broadband by political subdivisions, provided that the law in question serves to effect communications policy and would frustrate broadband deployment “on a reasonable and timely basis . . . to all Americans.” (p.62)

148. Such a law is focused solely on policy preferences, and not core state control of political subdivisions.  In short, a state law that effectuates a policy preference regarding the provision of broadband is not shielded from all scrutiny simply because it is cast in terms that affect only municipal providers. (p.63)

12. And unlike Nixon v. Missouri Municipal League, the question here is not whether the municipal systems can provide broadband at all, but rather whether the states may dictate the manner in which interstate commerce is conducted and the nature of competition that should exist for interstate communications. (p.5)

167. Once the state has granted that power, however, we do not believe a state is free to advance its own policy objectives when they run counter to federal policy regarding interstate communications. (p.70)

Within North Carolina, the John Locke Foundation has been a persistent critic of local government efforts to encourage competition against the cable and telephone company incumbent providers. It has made many claims in its effort to ensure communities have no power to build their own networks or to use their assets to partner with independent entities for superior Internet access. The FCC saw fit to directly respond to some of these claims.

 

John Locke Foundation Has Misrepresented How Municipal Networks are Funded

69. Morganton and Salisbury, North Carolina.  The John Locke Foundation (JLF) describes the cities of Morganton and Salisbury as examples of municipal broadband that “delivers harm, not help, to the competitive environment” in North Carolina. With respect to the “CoMPAS” (City of Morganton Public Antenna System) system in Morganton, JLF asserts that such harm to the community is evident in two actions by the city council.  The first harmful action, JLF claims, was the council’s decision to allow CoMPAS to borrow funds from two municipal funds. The same report on which JLF relies also states, however, that CoMPAS no longer operates at a loss and its loan repayments to those two funds will be complete in fiscal year 2014. Based on all the information in the report, there does not appear to be any evidence of harm to the community from the municipality’s decision to temporarily borrow money from two of its own reserve funds.  JLF’s second example of purported harm is the alleged cross-subsidization of CoMPAS cable rates by increases in taxes and electricity rates.  Significantly, the news report cited by JLF does not claim that any cross-subsidization actually occurred.  On the contrary, it reports that Morganton’s City Manager (a certified public accountant) said it had not occurred. (p.35)

Mount Vernon Mayor: Local Authority Has Been Good For Our City

As the time approached for FCC Commissioners to choose to allow Wilson and Chattanooga to serve surrounding communities, leaders from municipalities with publicly owned networks shared their experiences. Jill Boudreau, Mayor of Mount Vernon, Washington, published her community's experience with their muni in GoSkagit.com. 

As in the recent testimonial from Opelika Mayor Gary Fuller, Mayor Boudreau described how Mount Vernon's network has created a quality of life where high-tech has enhanced local medicine, encouraged new businesses, and created and environment rich with competition.

Mount Vernon's open access network provides infrastructure for nine service providers. Some of these providers offer services only to businesses, while others also serve government, retail providers, and specific industries such as the medical community. Hundreds of public and private customers receive fast, affordable, reliable connectivity through these providers and the city's publicly owned network.

We first introduced you to Mount Vernon in 2013. The community began deployment in 1995 and have added incrementally to the network to serve nearby Burlington and the Port of Skagit. Government facilities, schools, hospitals, and businesses save millions while utilizing top-notch technology. Businesses have relocated to the area to take advantage of the network and enjoy the high quality of life in the relatively affordable area with its abundance of outdoor recreation.

Mayor Boudreau recognizes that Mount Vernon's success may not be easy to come by for every community but believes each should have the ability to decide that for themselves. She writes:

When it comes to community growth and prosperity, next-generation Internet is vital infrastructure just like a road or sewer pipe. Though what we’ve built in Mount Vernon may not work in every city, each community should have the choice to pursue fast, affordable and reliable broadband in the way that works for them.

March 13th Webinar on Historic FCC Decision: Net Neutrality and Muni Broadband

In light of the recent FCC decision to restore some local telecommunications authority in Tennessee and North Carolina, it is time to examine the details. Join leading telecom attorneys Jim Baller and Marty Stern as they host a live BroadbandUS.TV webcast on March 13th to discuss Title II, network neutrality, and new possibilities for munis.

The event begins at 1 p.m. ET and is titled FCC Takes Charge - Net Neutrality and Muni Broadband: New Title II Rules for Broadband Access and Preempting State Limits on Municipal Networks. Registration is available at the BroadbandUS.TV website. More info about the event:

In this special edition of Broadband US TV we examine two historic decisions from the FCC: The decision to classify broadband access as a Title II service, and the preemption of state laws in North Carolina and Tennessee that placed limits on municipal broadband networks.  We’ll dive into these issues with two panels of prominent players and experts on both sides of these white hot issues.  Hear details about the rulings, predictions on implementation and court challenges, and what these rulings are likely to portend for broadband in America over the next year and beyond.  On the muni broadband panel, our own Jim Baller, lead counsel to Chattanooga and Wilson before the FCC, will go from host to panelist and mix it up with our other guests.  We’ll be sure not to cut him any slack.

Guests will be:

Title II and Broadband  -- Pipedream or New Reality                                     

  • Craig Aaron, President, Free Press 
  • Chris Lewis, VP, Government Affairs, Public Knowledge
  • Sarah Morris, Senior Policy Counsel, New America Foundation, Open Technology Initiative 
  • Hank Hultquist, VP, Federal Regulatory, AT&T
  • Barbara Esbin, Outside Counsel, American Cable Association
  • Jonathan Banks, Senior VP, Law and Policy, US Telecom Association 

 

Muni Broadband -- Striking Down State Limits 

  • Jim Baller, Senior Principal, Baller Herbst Stokes & Lide 
  • Joanne Hovis, CEO, Coalition for Local Internet Choice 
  • Christopher Mitchell, Director, Community Broadband Network Initiative, ILSR
  • Scott Cleland, President, Precursor Group 
  • Jeff Lanning, VP, Federal Regulatory Affairs, CenturyLink
  • Lawrence Spiwak, President, Phoenix Center

Participants will have the opportunity to send in their questions during panel discussion, so have your questions ready!

Lafayette Congratulates Wilson; Offers Support After FCC Ruling

When the FCC announced its intention last week to neutralize the negative impacts of Tennessee and North Carolina anti-muni laws, celebrating reached far beyond Chattanooga and Wilson. In Lafayette, home to LUS Fiber, City-Parish President Joey Durel took time to write a supportive letter to Wilson's Mayor Bruce Rose.

We reproduce the text of that letter below. As Durel points out, the two communities have strong similarities and the victory in Wilson has also reached Lafayette. Durel notes that a community's decision to better its connectivity should always be a local choice, that partisanship is not a natural part of the equation, and he encouraged Rose to "stay strong."

Dear Mayor Rose:

As Mayor of Lafayette, LA, a city that proudly provides electric and communications services to our businesses and residents, I want to congratulate you, your colleagues, and your constituents on your achievement in delivering world-class Internet services to the residents and businesses of Wilson - and on the strong endorsement you received last week from the Federal Communications Commission.

As in Wilson, the Lafayette community has been united in our support for high-capacity broadband connectivity to the Internet as an essential tool of economic development and as a means of securing our community's economic future. While some will use any means possible to distract you from achieving your goals for your community, our deeply conservative electorate has consistently supported our electric utility's great achievement in building a future-proof broadband Internet infrastructure, and this support has been consistently bi-partisan. My Democrat colleagues have joined me and my fellow Republicans in insisting that we in Lafayette should have the right to choose our broadband Internet future. We here in Lafayette will determine how our community engages this essential economic development tool, and we will not have our economic future dictated to us by others.

As you in Wilson have, we have seen the increased politicization of the local Internet choice issue in Washington, and we regret that it has. At the local level, in our community, this is not a partisan issue and we have resisted letting it become one. Like you, we do not believe this issue is about politics or partisanship or electoral politics or the public versus the private sector. Rather, it is about strengthening America, local self-reliance and the opportunity of our citizens to live in a community with all the same opportunities - for jobs, education, health care, public safety, and much more. Wilson, like Lafayette, has built a network that ensures that your community will be second to none in these respects. Congratulations to you for taking this important step, you are obviously interested in doing the right thing for your citizens, so stay strong. And, please feel free to contact me anytime, I've been in your shoes.

Sincerely,

L.J. "Joey" Durel, Jr.

City-Parish President

Lafayette Consolidated Government

Blackburn and Tillis Introduce Bill Aimed to Undo FCC Decision to Restore Local Authority

Last week, the FCC made history when it chose to restore local telecommunications authority by nullifying state barriers in Tennessee and North Carolina. Waiting in the wings were Rep. Marsha Blackburn and Senator Thom Tillis from Tennessee and North Carolina respectively, with their legislation to cut off the FCC at the knees. [A PDF of the draft legislation is available online.]

Readers will remember Blackburn from last year. She introduced a similar measure in the form of an amendment to an appropriations bill. Blackburn has repeatedly attributed her attempts to block local authority to her mission to preserve the rights of states. A Broadcasting and Cable article quoted her:

“The FCC’s decision to grant the petitions of Chattanooga, Tennessee and Wilson, North Carolina is a troubling power grab,” Blackburn said. “States are sovereign entities that have Constitutional rights, which should be respected rather than trampled upon. They know best how to manage their limited taxpayer dollars and financial ventures."

Thom Tillis, the other half of this Dystopian Duo, released a statement just hours after the FCC decision:

“Representative Blackburn and I recognize the need for Congress to step in and take action to keep unelected bureaucrats from acting contrary to the expressed will of the American people through their state legislatures.”

Considering that networks in Chattanooga and Wilson are incredibly popular and an increasing number of communities across the country are approving municipal network initatives through the ballot, it is obvious that Tillis is rather confused about the expressed will of the American people. He needs to sign up for our once weekly newsletter!

No doubt the decision will be tied up in court proceedings for some time to come as state lawmakers attempt to control what municipalities do with their own connectivity decisions.

In keeping with the drama of the recent days, I have to say, "The lady doth protest too much, methinks." If Blackburn and Tillis are so convinced the FCC is overstepping, why not let the matter be decided in the courts? They know the law is not on their side, that's why.

We encourage you to contact your elected officials, and let them know that you think about the Blackburn/Tillis bill: "that dog won't hunt," in the words of Chairman Wheeler. The victory of February 26th was a significant first step in a long road to ensuring fast, affordable, reliable Internet for every one. Let's keep the momentum rolling.

Jim Baller is the Senior Principal of Baller Herbst Stokes & Lide, the lead counsel to Wilson and the Chattanooga EPB. You can read Jim's full statement at the firm's website:

“This is an important moment for communities in North Carolina, Tennessee, and other states that have barriers to local investments in advanced communications networks,” said Jim Baller, senior principal of Baller Herbst Stokes & Lide. “Not only has the Commission confirmed that it has authority to remove such barriers, but it has also compiled a massive record documenting the critical role that local Internet choice can play in fostering strong, vibrant communities and in ensuring that the United States will remain a leading nation in the emerging knowledge-based global economy.”

Cable Companies Lose Big at FCC, Barriers to Community Broadband Struck Down

For Immediate Release: February 26, 2015

Contact: Christina DiPasquale, 202.716.1953, Christina@fitzgibbonmedia.com

BREAKING: Cable Companies Lose Big at FCC, Barriers to Community Broadband Struck Down

Two southern cities today persuaded the Federal Communications Commission to recognize their right to build their own publicly owned Internet networks where existing providers had refused to invest in modern connections. The 3-2 FCC vote removes barriers for municipal networks in Chattanooga, Tennessee and Wilson, North Carolina, to extend their high-quality Internet service to nearby areas.  

Said Christopher Mitchell, Director of Community Broadband Networks at the Institute for Local Self-Reliance:

“Cable companies lost their bet that millions spent on lobbying to stifle competition was a wiser investment than extending high-quality Internet to our nation’s entrepreneurs, students and rural families. 

“Preventing big Internet Service Providers from unfairly discriminating against content online is a victory, but allowing communities to be the owners and stewards of their own broadband networks is a watershed moment that will serve as a check against the worst abuses of the cable monopoly for decades to come.”

The FCC decision sets an historic precedent for towns working to offer municipal broadband networks in twenty states that have enacted limits or bans on local governments building, owning, or even partnering to give local businesses and residents a choice in high speed Internet access. Three-quarters of Americans currently have either no broadband or no choice of their Internet provider. 

Christopher Mitchell, the Director of Community Broadband Networks at the Institute for Local Self-Reliance, has traveled to over 20 states and spoken with over 100 community groups looking to provide high-quality Internet for their residents. He has also advised members of the FCC on related telecommunications issues in the lead-up to the decision.

For interviews around the FCC decision, please contact Christina DiPasquale at 202.716.1953 or at christina@fitzgibbonmedia.com. To view a map tracking local government investments in wired telecommunications networks and state laws that discourage such approaches, please visit: http://www.muninetworks.org/communitymap.

Municipal broadband networks (munis):

  • Create thousands of new private sector jobsA collaborative muni effort in Georgia between five towns, is credited with bringing over 6,000 new jobs to the region by building and sustaining their network. The muni in Springfield, MO convinced online travel company Expedia to move to the town and has 900 local jobs because their network allowed the company to stay and expand.
  • Protect consumers by offering competitive pricing. During the period of 2007-08, Time Warner Cable increased rates up to 40 percent in some of the areas in Raleigh, NC, while not increasing rates in nearby Wilson—which has a strong muni. Chattanooga’s muni grew from a basic connection of 15 Mbps, when it was first founded, to 100 Mbps today–without raising prices once. The slowest connection available in Chattanooga from the utility is 10 times faster than the average American connection.
  • Provide higher speed Internet that allows for increased business activity. The largest employers in Wilson, NC rely on the municipal broadband network for their transactions. The muni in Springfield, MO, attracted John Deere Remanufactured and the McLane Company to the area. 
  • Do not rely on taxpayer financing, like large private telephone companies. Most municipal networks are financed through methods that do not involve raising taxes: revenue bonds, interdepartmental loans and savings created by ending expensive leased services. Dakota County in MN has saved $10 million over 10-15 years by building their own network and ending leases. Over $2 million in revenues from the Thomasville, GA network contributed to the town’s ability to eliminate its local fire tax.
  • Receive broad support from voters, regardless of party affiliation. Roughly 3 out of 4 cities with citywide munis reliably vote Republican and polling shows that 2 out of 3 Republicans, Independents, and Democrats prefer that decisions about how to best expand their Internet access be made by local governments.
  • Foster the strength of local businesses. Politically conservative communities in Chanute, KS, and Lafayette, LA, have munis that are working on the deployment of fiber networks to encourage economic development by allowing businesses to market themselves and compete online in the global marketplace. Lafayette has added over 1,000 tech jobs in 2014 alone.
  • Expand educational opportunities. The muni in Longmont, CO, is now providing 10 times the bandwidth that their school district previously received from a private provider at an annual savings of $100,000. Munis in Carroll County, MD, and Chanute, KS, have both allowed schools they service to offer new distance learning classes in multiple locations via video streaming. The city of Rockport, ME, partnered with a nonprofit college to bring students upload speeds 200 times faster than Time Warner Cable’s package for the area.

38 Next Century Cities Leaders Sign Letter to FCC Supporting Local Authority

President Obama suggested restoring local telecommunications authority while visiting Cedar Falls in January and a number of local elected officials were ready to back him up. Leaders from 38 members of Next Century Cities recently submitted a public letter to the FCC urging commissioners to consider local autonomy as they consider the Chattanooga and Wilson, North Carolina, petitions.

Last summer, both communities filed with the FCC seeking relief from restrictive state laws that prevent their broadband utilities from serving surrounding communities. FCC Chairman Wheeler has spoken in support of local authority more than once. Next Century Cities, a coalition of communities that was formed specifically to advance better connectivity, writes:

We write only to urge that, as you consider these petitions, you take proper account of the importance of local choice and autonomy. The benefits of high-quality broadband are now beyond dispute: these projects have stimulated local innovation and economic development, enhanced education, improved government services, and opened new worlds of opportunity to communities and citizens. It is our hope that federal policy will support the realization of these outcomes in our communities and in towns and cities across the country, by empowering every community to meet the needs of their residents.

You can read the full letter [PDF] online to see if your elected officials signed on.

The FCC's decision on the petitions is expected in February.