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Grassroots Groups Urge FCC to Promote Public, Not Corporate Interests

Last week, two of the organizations with which we regularly work to promote community solutions to broadband submitted comments to the FCC on the matter of USF reform. Among the comments from the Rural Broadband Policy Group, is this passage:
Members and allies of the Rural Broadband Policy Group hold “local ownership and investment in community” as a core principle in broadband deployment. We believe that local ownership of broadband infrastructure can address problems such as lack of service, limited provider choice, affordability, slow speeds, and also enforce strong consumer protections. Policies that encourage local ownership create opportunities and wealth in communities. For example, local broadband networks employ IT professionals who live and work in the local community. When communities own their communications infrastructure, not only do they boost their local economies and create jobs, but are also held accountable to ensure that broadband is accessible to every resident. Moreover, the 70-year history of rural electric and telephone cooperatives proves that locally owned networks are vital stewards of public subsidies. We are disappointed that the proposed USF/CAF reforms ignore the advantages of local ownership and prohibit community broadband networks, anchor institutions and Tribal governments from receiving USF/CAF support. The proposed reforms do not create avenues for local ownership in rural, Tribal, and low-income communities. This is a lamentable flaw in the proposal, and we respectfully request that the Commission include the following recommendations: Communities that self-provision should be eligible for funds. Currently, proposed USF reforms exclude community-based networks that have done the most to build out broadband infrastructure to provide essential services in underserved areas. These self-provisioning projects range from municipal networks to private sector nonprofit networks, and play a critical role in the future of their communities. Yet, they are not eligible for the proposed Connect America Fund. Self-provisioning communities have invested their social and financial capital in broadband infrastructure and services because incumbent carriers refused to make these investments.

FCC Protects Job Destroyers, Not Job Creators

Art Brodsky of Public Knowledge makes a compelling case that the Federal Communications Commission is refusing to take actions that will create thousands of jobs. And his estimate is probably low. Smartly, he doesn't just pin it on the FCC, where the stumbling block appears to be Chairman Genachowski (both Copps and Clyburn already want to help the innovators and true job creators) but also on Congress To explain:
Once upon a time, the old, old AT&T was the sole supplier of telephones and other equipment to consumers and businesses. The FCC, in a series of market-opening orders, culminating in the 1968 Carterfone ruling, finally freed the non-AT&T world to provide telephone equipment. Through the years, consumers and businesses had many more choices as new companies sprang up to provide home phones, business phones, and business switching equipment for voice and data. Anyone could buy a phone and plug it in. At one telephone equipment show in the mid-1980s, a small California computer company said it was going to enter the telephone business, but only put up an empty booth promising products later. (Whatever happened to those Apple guys and their phones, anyway?) ... One reason is that the FCC over the years succumbed to the Big Telecom campaign to put all the little guys out of business through subterranean means that the public would never see (like charges big phone companies levy to connect to their network). Another is that the FCC gave up the authority over Internet access (broadband), which leads to its current troubles in trying to justify legally how to get an open Internet and will likely lead to future controversies over how to support broadband deployment (universal service).
Right now, it doesn't matter whether Democrats or Republicans appoint FCC Commissioners so long as 3 of the 5 commissioners are more concerned with what benefits a few massive companies rather than the vast majority of businesses and citizens. FCC Logo This is exactly why communities are smart to build their own networks -- they have more control and are less damaged by the poor decisions and waffling of the federal bodies charged with making telecom policy.

Should FCC Only Fund Competitors to Community Broadband?

I recently joined some other grassroots groups in talking to FCC Commissioner Copps about the ways the FCC could improve access to telecommunications for most Americans -- you know, the mission of the Federal Communications Commission.  This was the day before FCC Chairman Genochowski announced the broad outline of Universal Service Reform.  

Presently, it appears that the FCC will broadly adopt the industry's plan of taking more money from subscribers and spreading it among private companies and coops that are providing services in rural America.  We have called up on the FCC to recognize the important role of community broadband networks and make them eligible recipients of USF funds but the FCC appears to be ready to double down on its past mistakes of relying on absentee-owners who have little incentive to actually provide reliable services at affordable prices.  (Fred Pilot has also called upon the FCC to make this change.)

The result is that communities like rural Sibley County in Minnesota's farm country may build their own next-generation broadband network, only to find the federal government subsidizing a vastly inferior DSL network from a competitor. This is a fiscally irresponsible approach that prioritizes the profits of a few private companies over what is best for the vast majority of private companies and residents in communities that need networks that are actually accountable to them.  

If you care about this issue, you should ask the Rural Broadband Policy Group or Media Actions Grassroots how you can help.  They have been working to break through the beltway bias against solutions that encourage local self-reliance.

Attention Community Networks: The FCC Needs Information

We have long urged the FCC to include community networks in discussions around subjects like Universal Service Fund reform -- where communities are better poised to build the networks they need than private companies. The good news is that the FCC is now listening; the bad news is that they are listening during a short window in the middle of August. Doh! Nonetheless, we urge as many of you as possible to file whatever information you can to inform the FCC. Public Knowledge and the Benton Foundation are coordinating a filing to make it easier on you -- a recent email copied below explains further. Please contact me or one of the people below if you have any questions - getting good information in front of the FCC is essential for them to make the right decision. From Public Knowledge and Benton: In reforming this portion of the fund the FCC has requested addition information on the idea of communities “self-provisioning” their broadband service.  Specifically the Commission is considering requiring all fund recipients to open up their networks to self-provision communities at reasonable rate.  Right now this requirement would be limited to self-provisioners that are in areas where USF recipient may have facilities nearby BUT the USF recipient is not providing service to the self-provisioning community. We think that small, independent or community based ISPs are just the kind of folks the FCC envisions to be “self-provisioning” an unserved community.  Public Knowledge and the Benton Foundation are working together to document input from current “self-provisioners” to help answer some of the questions in this proceeding.

Comcast: Internet Access is Temporarily a Civil Right

You can now read this post at Huffington Post also. As a condition of its massive merger with NBC, the federal government is requiring Comcast to make affordable Internet connections available to 2.5 million low-income households for the next two years. In promoting the program, Comcast's Executive VP David Cohen, has made some unexpected admissions:
“Access to the internet is akin to a civil rights issue for the 21st century,” said David Cohen, Comcast’s executive vice president. “It’s that access that enables people in poorer areas to equalize access to a quality education, quality health care and vocational opportunities.”
It was only after the federal government mandated a low-cost option for disadvantaged households that Comcast realized everyone could benefit from access to the Internet. Sadly for Comcast, it has done a poor job of reaching those disadvantaged communities, by its own admission:
"Quite frankly, people in lower-income communities, mostly people of color, have such limited access to broadband than people in wealthier communities."
This is why so many communities are building their own next-generation networks - they know that these networks are essential for economic development and ensuring everyone has "access to a quality education, quality health care and vocational opportunities." And they know that neither Comcast nor the federal government are going to make the necessary investments. They need a solution for the next 20 years, not just the next 2. Community Networks Map Comcast has a de facto monopoly in many communities.

Don't Sell the Public Airwaves to the Highest Corporate Bidder

During the recent budget negotiations, one plan called for taking valuable wireless spectrum that is intended to be used as a commons and auctioning it off the massive corporations to monopolize. Rather than enabling a whole new generation of wireless technologies that would create countless jobs and ongoing opportunities for innovation (some have described it as Wi-Fi on steroids), it would have created a one-time cash infusion while further consolidating the incomparable market power of AT&T and Verizon. Preserving as much spectrum as possible as unlicensed commons allows communities, small businesses, and activists to build the wireless networks they need because they cannot afford to license spectrum for their sole use. Wally Bowen wrote the following op-ed urging a more sensible approach. Fortunately, the spectrum auction was dropped from the plan - but it will undoubtedly come up again. This was originally published in the Charlotte Observer on July 31 and is reprinted here with permission. U.S. House Republicans are pushing a proposal to sell off some of the nation's most valuable real estate as part of a debt-ceiling deal, apparently unaware of the harm it will do our economy. This real estate is a portion of the public airwaves so valuable that it's been called the "Malibu beachfront" of the electromagnetic spectrum. This lower-frequency spectrum, previously reserved for broadcast radio and TV, is far superior to "Wi-Fi" frequencies used for Internet access - and for innovative devices ranging from microwave ovens and cordless phones to garage-door openers and baby monitors. This prime spectrum can deliver broadband speeds that support high-definition video for telemedicine in rural and other underserved areas. This spectrum is especially plentiful in rural America, and could help connect millions of low-income citizens to affordable broadband services. It could also spark a new wave of high-tech innovation and job-creation far greater than the Wi-Fi boom of the last 25 years. Wi-Fi Logo The genius behind the first wave of Wi-Fi innovation was unlicensed spectrum.

CED Magazine: Broadband is a Lifeline Service

Hats off to a column published by CED Magazine this week, written by Editor-in-Chief Brian Santo. The discussion centers on proper government role in broadband:
These disagreements are hopelessly tangled in another argument entirely: What role should the government have in any market, let alone the broadband market? North Carolina’s state legislature just passed a law prohibiting municipal broadband services. But in the communications industry, many free-market and anti-regulatory arguments would be mooted if the market provided what is being asked for – affordable and universal access to broadband. Now, not later.
Communities are not building their own networks on a lark - they do it because they have to in order to ensure their future vitality. Just last week, we also answered the same question of the role of government in broadband when revisiting an excellent commentary published years ago about the proper role of government in matters of infrastructure. We will all benefit the most when we all have access to fast, affordable, and reliable access to the Internet. But blindly relying on a few massive companies to get us there is lunacy. They simply do not have the motivation or capacity to sufficiently invest or to run the networks in such a way that all have access -- as private companies, they are supposed to maximize profit. Maximizing profit is incompatible with managing infrastructure -- pricing access to infrastructure too high results in losses for everyone, including the vast majority of the private sector. At the very least, all communities must maintain the freedom to choose locally if building a network is the right decision for them.

Tethering, Verizon, and the Problem with Public Interest Requirements

When Verizon won an auction to use the 700MHz band of the spectrum to deliver mobile broadband, it promised to adhere to a set of openness rules that included allowing customers to use applications and devices of their choosing. But Verizon is now blocking "tethering" apps that allow us to use our cell phones as a modem for our computers. Wendy Davis at MediaPost offered more context:
Whether it's legal for a wireless carrier to cripple tethering services is unclear. Verizon agreed to follow open Internet principles as a condition of acquiring the spectrum that it uses for 4G wireless phones. One interpretation of that condition is that the company shouldn't attempt to restrict tethering on its 4G network -- though apparently it's still free to do so on the 3G network. … But aside from neutrality issues, Verizon's move clearly seems hard to justify from a pricing standpoint. Given that the company is already going to charge new users based on the amount of data they consume, there's no reason for it to also impose a surcharge for tethering.
Free Press filed a complaint with the FCC to investigate: Free Press Logo
Free Press will file a complaint today with the Federal Communications Commission against Verizon for violating the rules that govern the licenses for its LTE network. Licensees of the C Block of the upper 700 MHz block, over which Verizon runs its LTE network, may not “deny, limit, or restrict” the ability of their customers to use the applications or devices of the customers’ choosing. Recent reports reveal that Verizon has been doing just that by asking Google to disable tethering applications in the Android Market. Tethering applications, which allow users to make their phones into mobile hot-spots, implicate the customers' ability to use both the applications and devices of their choice. Free Press argues that by preventing customers from downloading tethering applications from the Android Market, Verizon is restricting not only the applications available to them, but also limits use of tethered devices such as laptop or tablet computers.

Preserve Unlicensed Spectrum - White Spaces At Risk

If the future is wireless, we have to preserve unlicensed spaces. To explain: most wireless stuff uses licensed spectrum - where only a single entity has permission from the FCC to use a specific wavelength of spectrum. While this is great for those who can afford to license spectrum (companies like AT&T and Verizon), it is not particularly efficient because the rest of us cannot use those wavelengths even if AT&T and Verizon aren't (which is particularly a problem in rural areas). Contrast that approach with Wi-Fi, which uses unlicensed spectrum. There are portions of spectrum where the FCC has said anyone can do anything. This is why we do not need permission to set up wireless networks in our house. Last year, the FCC made a great decision to make "white spaces" wireless technology unlicensed -- which will allow more of us (again particularly in rural areas) to use white spaces without having to get permission. Because this decision creates a larger potential market, we would have more manufacturers interested in creating gear -- meaning more innovation and a lower cost to establish wireless networks (that are far more powerful than Wi-Fi allows). But now Congress is considering reversing that decision and licensing that spectrum to generate a few billion dollars of one-time revenue for the government -- at a cost of far more than billions of dollars of lost opportunities, particularly in rural America where these unlicensed white spaces are the only real opportunity to rapidly deliver broadband in the short term. In short, keeping these white spaces unlicensed will be far better for rural economies, innovation, and productivity than a one-time infusion of cash into the federal government. These decisions are going to made shortly, so I encourage everyone to check out Public Knowledge's Action Alert calling on us to contact our members of Congress to oppose this approach.

Understanding User Fees and the Community's Right-of-Way

A friend once told me about his battle with the local government over whether it would charge him a fee for inspecting the house he wanted to begin renting out (he had bought another house but didn't want to sell the first in a down market). His house was well maintained and he said he would be happy to schedule the inspection whenever convenient for the City but absolutely would not pay a fee so they could inspect his house. Consider this from a different perspective. The local government should make sure that rental properties meet certain standards (building and fire codes if nothing else). This means inspections. Who should pay for the inspections? It boils down to two choices: the property owner or the tax-base at large. It seems more fair to charge property owners at least a portion of the cost as they benefit the most from being able to rent out their property. I make this point to lead into another discussion about managing the Right-of-Way (ROW), the city-owned property used for utilities. An article in TribLive about a town near Pittsburgh fighting to keep its cable fees offers insight into a national discussion about fees for using the ROW.
Hempfield charges utilities $750 for a right-of-way permit, $500 for a renewal, and $250 for a construction permit, according to a township ordinance. Ferguson said without the fees, the township would not be able to monitor the work. "We use the monies, those permit fees, to pay staff to make sure they repair roads as they're supposed to," Ferguson said. "Part of the fee is ... for our inspectors to go out and make sure they (utilities) complete the job right." Ferguson said utility companies sometimes dig up new roads to install or repair lines and leave the road in shambles afterward. "Taxpayers should not be required to pay the staff to make sure utility companies do the right thing," he said.
FCC Logo Telecommunications providers have long claimed that local government fees are unreasonable and getting the necessary permits is too difficult. But when asked to document such claims, they rarely do. The FCC is currently examining whether it believes the fees charged by local governments are fair.