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Media Roundup: Week of August 8

This week’s rumblings on municipal broadband held more reverberations from last week's announcement that the FCC would take up formal proceedings regarding Chattanooga, TN and Wilson, NC petitions. The message for preempting state laws is being amplified, first Business Insider wrote this piece on How “Gig City” Chattanooga is putting Big Cable on the ropes:

"Ultimately what it comes down to is these cable companies hate competition," said Chris Mitchell, the director of community broadband networks for the Institute for Local Self Reliance.

As director, Mitchell watches over issues like municipal networks, net neutrality, and the consolidation of cable companies, advocating for the public. "It's not about [cable's] arguments so much as their ability to lobby very well," he said.

And you know you’re making an impact when the Redditers jump on the train (or the choo choo? sorry…) Chattanooga mayor Andy Berke and EPB CEO Harold DePriest participated in a Reddit AMA (“Ask Me Anything”) online discussion, which got Front Page billing: 

Q: What would you say to the people that believe it’s unfair for private companies to compete with a public utility?

A: It is unfair - they have way more money than we do.

We believe that this is critical infrastructure for our community to thrive and grow. Many people might consider things like roads as critical infrastructure, but we include this as one of those things.

If the private sector won’t bring it to local communities, local communities should have the right to build it for themselves.

And here, the mayor talks about the familial relationship the companies had with city leaders before they built their network: 

Q: When establishing it, what were your interactions like with comcast, time warner, etc.? Did they try to stop it from happening? If so, how?

A: There were two main interactions. Our last mayor asked big telecom if they would bring gigabit to Chattanooga - and they said NO.

Lawsuits followed.

We won.

Then, as if on cue, CenturyLink responded with their typical weak claims that “they’re getting to it,” and similar “the check’s in the mail, we swear” type announcements. First in SeattleDenver, and then in Our Fair Twin Cities (Minneapolis/St. Paul). The giant claimed that soon, if not already, residents could be seeing 1 Gig speeds just like Chattanooga. But when we looked into it, CenturyLink’s site appeared to have no specifics or even potential locations where the fairy-Gigmother might eventually be working. 

“Who gets CenturyLink's new gigabit-per-second service, and when, depends on a number of factors, the company cautioned. Fiber to homes requires the existence of nearby fiber infrastructure, and for now this is present only in parts of the Twin Cities.” 

Rest assured, we’ll believe it when we see it.

And, finally this week Gizmodo adds in it’s 10 cents. The online tech magazine touted community broadband as an answer to net neutrality fears:

"But guess what: we don't have to rely entirely on the FCC to fix the problems with high-speed internet access. Around the country, local communities are taking charge of their own destiny, and supporting community fiber.

Unfortunately, those communities face a number of barriers, from simple bureaucracy to state laws that impede a community's ability to make its own decisions about how to improve its Internet access.

We need to break those barriers. Community fiber, done right, should be a crucial part of the future of the Internet.

Huntsville Considers a Network Investment, as Its Businesses Consider Chattanooga

We reported back in June on Huntsville, Alabama's decision to undertake feasibility study to evaluate its options for increasing next generation fiber optic internet access throughout the city. AL.com is now reporting that Huntsville Utilities hopes to hear the results of the study within 90 days, allowing it to decide whether it will take steps to expand its minimal existing fiber infrastructure and offer connections to businesses and the public. 

The sense of urgency in Huntsville is not surprising, given that it sits just South of the Tennessee border and a less than 100 miles from Chattanooga, the Gig City. News coverage in Huntsville on the possibilities of a future municipal fiber network make constant reference to Chattanooga's example, including this list of valuable lessons Huntsville can learn from its neighbor.

The scenario Huntsville fears is laid out in another AL.com article, featuring the story of Matt Barron, a young tech entrepruener who moved his startup from Huntsville to Chattanooga this summer. Barron describes the attraction of a city with a commitment to next generation infrastructure, above and beyond the advantages of speed:

 "I want to live in the sort of city that puts a high-speed Internet in," Barron said. "It might have nothing to do with the bandwidth. It has everything to do with the community and the people, the people that stand behind what is basically a human right, right now."

Barron sees the Internet as fundamental. People "can't even apply for a job without bandwidth," he said, and "you have the right to free speech, but speech happens largely on the Internet these days. So, it's a human right."

Chattanooga is forward-thinking enough "to even think about putting a high-speed Internet in," Barron said. "Those are the people I want to be around."

It should be noted that Barron gave those quotes at the annual GIGTank event in Chattanooga, a conference designed to help startups and web-based firms, while surrounded by like-minded entrepreneurs and investors eager to capitalize on Chattanooga's network.

Huntsville itself has a history of being a tech- and innovation-friendly environment, having served as the home of NASA's Marshall Space Flight Center since 1960. Marshall is a rocketry and spacecraft propulsion research facility, and played a crucial role in the Saturn, Apollo, and Space Shuttle programs. With a community full of rocket scientists, doing the math on a municipal network for Huntsville shouldn't be too hard.  

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

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

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

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

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

We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address.

This show is 22 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

Listen to previous episodes here. You can can download this Mp3 file directly from here.

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

Community Network Media Roundup: Week of August 1

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

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

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

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

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

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

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

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

EPB Fiber Logo

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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!

Chattanooga Profiled in Al Jazeera America

“There are companies that do what we do, but we can do it in hours, and they can take weeks,” said Posey. “Anywhere else, it would take a lot more time and a lot more money ... Chattanooga is essential to our business model.”

Al Jazeera America's Peter Moskowitz recently spoke with Clay Posey, one of the entrepreneurs flocking to Chattanooga for the network. Posey works in one of the startup incubators there, Co.Lab, developing his idea for pre-operative models that allow surgeons to prepare before operating on patients.

While Chattanooga may not be the norm and may not be an easy venture for every municipality, it lifts the bar. From the article:

“Whenever a corporation like Comcast wants to do something like raise prices, we can point at Chattanooga and say, ‘Why can’t we have something like that?’” said Christopher Mitchell, head of the community broadband networks initiative at the nonprofit Institute for Local Self-Reliance. “It establishes a baseline or at least an aspirational standard.”

The article describes lobbying efforts by large corporate providers designed to stop the municipal networks model. Another Chattanooga entrepreneur told Moskowitz:

“Having public or quasi-public Internet service providers is a good solution to consolidation because they most likely won’t be sold,” said Daniel Ryan, a local Web developer who helped run the digital operation of Barack Obama’s 2012 presidential campaign. “Do I think if every city did this, Comcast would go out of business? No. But it means there will always be competition.”

Moskowitz included a brief historical summary of the network, its contribution to the electric utility, and the challenges created by state barriers. He included our Community Broadband Networks map.

For more detail on Chattanooga's fiber network, download our case study Broadband at the Speed of Light: How Three Communities Built Next-Generation Networks. The case study also covers the communities of Bristol, Virginia and Lafayette, Louisiana. We also spoke with EPBFiber's Danna Bailey on episode #59 of the Community Broadband Bits podcast.

FCC Chairman Wheeler on Chattanooga and Expansion Ban

Removing restrictions on community broadband can expand high-speed Internet access in underserved areas, spurring economic growth and improvements in government services, while enhancing competition. Giving the citizens of Chattanooga and leaders like Mayor Berke the power to make these decisions for themselves is not only the right thing to do; it’s the smart thing to do.

FCC's Wheeler Forging Ahead As Support Grows to Restore Local Decision-Making

In a June 10 Official FCC Blog post, Chairman Tom Wheeler's words show continued resolve to restore local decision-making to communities that want to evaluate their own investments and partnerships. This is the latest in a series of public statements indicating the agency is ready to assert authority and remove barriers to community networks.

Wheeler writes:

If the people, acting through their elected local governments, want to pursue competitive community broadband, they shouldn’t be stopped by state laws promoted by cable and telephone companies that don’t want that competition.

I believe that it is in the best interests of consumers and competition that the FCC exercises its power to preempt state laws that ban or restrict competition from community broadband. Given the opportunity, we will do so.

In April, Wheeler raised a few lobbyist eyebrows in a speech on the role of municipal networks at the Cable Show Industry conference in Los Angeles. In this latest post, he notes that Chattanooga's network transformed it from "a city famous for its choo-choos," into the "Gig City." The network spurs economic development, improves access, and inspires innovation, notes our FCC Chairman.

The National Journal also takes note of the FCC blog post. Its article points out that Wheeler criticizes Tennessee's state law restricting Chattanooga's ability to expand. Even though nearby communities want service from EPB, the City is forbidden from serving them. Not acceptable, says Wheeler.

While the National Journal suggests Tennessee may be the first state to face FCC authority to eliminate state barriers, policy experts have no expectations yet. From the article:

Harold Feld, the senior vice president of consumer advocacy group Public Knowledge, said Wheeler will probably not launch a broad initiative to attack state laws around the country. Instead, the FCC chief will probably wait for groups or individuals to file complaints about specific state laws, Feld predicted.

Chairman Wheeler's sentiments comport with the growing movement to support local authority for infrastructure investment. In addition to communities expressing their desire to decide for themselves, the Coalition for Local Internet Choice (CLIC) has just announced its formation. The group brings together policy leaders, including ILSR's Chris Mitchell, to defend the proposition that decisions over whether to invest in a community network should be made at the local level.

We encourage you to join CLIC through the CLIC website. You can also follow localnetchoice on Twitter. In addition to getting the latest updates on CLIC's activities and research, you can share your support for local Internet self-reliance.

To learn more about the many benefits EPB Fiber bring to Chattanooga, read our case study. The report provides a detailed account of how the community deployed the network and offers some hard data on the many ways it saves public dollars, drives economic development, and improves access. Also take a few minutes to listen to episode #59, our discussion with EPB Fiber's Danna Bailey.

Wheeler's closing is unambiguous:

Removing restrictions on community broadband can expand high-speed Internet access in underserved areas, spurring economic growth and improvements in government services, while enhancing competition. Giving the citizens of Chattanooga and leaders like Mayor Berke the power to make these decisions for themselves is not only the right thing to do; it’s the smart thing to do.

No Scale Advantage in Netflix Speed Ranking

Netflix has continued to publish monthly rankings of ISPs average speed in delivering Netflix video content to subscribers. Though they first published data about the largest, national ISPs like Comcast, AT&T, and the link, they have an expanded list with many more ISPs.

I recognize two municipal networks on the expanded list of 60 ISPs. For March 2014, the Chattanooga EPB network is ranked 4th and CDE Lightband of Clarksville, Tennessee, is ranked 7th.

With the exception of Google Fiber and Cablevision, the top 10 are regional or somewhat smaller ISPs. Combined with the significant spread across the rankings of the biggest ISP, we see no empirical evidence for any kind of benefits to subscribers from scale. That is to say, Netflix data shows that bigger ISPs do not deliver better customer experience.

We do see more evidence that fiber networks deliver faster speeds on average, with cable following, and DSL trailing distantly. This is why DSL networks are losing customers where people have a choice and cable is gaining (most often where there is no fiber option).

Any claims by Comcast that allowing it to merge with Time Warner Cable would result in better service should be subject to extreme skepticism. Many much smaller networks deliver faster connections and raise rates far less often that Comcast, which is at the high end of frequency in rate hikes.

The problem with the biggest companies is that they focus on generating the highest returns for Wall Street, not delivering the best experience to Main Street.