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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.

Rural Utilities Building Broadband Networks - Community Broadband Bits Podcast Episode 109

If you have doubts that we can or will connect rural America with high quality Internet connections, listen to our show today. Alyssa Clemsen-Roberts, the Industry Affairs Manager at the Utilities Telecom Council, joins me to talk about how utilities are investing in the Internet connections that their communities need.

Many of these utilities are providing great connections, meaning that some of the folks living in rural America have better -- faster and more affordable -- Internet access than residents of San Francisco and New York City.

We discuss the demand for better Internet access and the incredible take rates resulting from investment in some of the communities that rural electric cooperatives are serving.

UTC has a been a strong ally of our efforts to prevent states from revoking local authority to build community networks. Within UTC, the Rural Broadband Council is an independent operating unit.

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 17 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."

Media Roundup: Blackburn Amendment Lights Up Newswires

Rep Marsha Blackburn (R-TN) and her love for large corporate ISPs was all over the telecommunications media this week. She attempted to kneecap the FCC as it explores options to restore local telecommunications authority to communities. Blackburn introduced an amendment attacking local options as the House took up general appropriations bill H.R. 5016.

The amendment passed 223-200, primarily along party lines, with most Republican Reps voting with Blackburn and all but two Democrats opposing the amendment.

Democrats voting to support the amendment included Georgia's 12th District's John Barrow and Jim Matheson from Utah's 4th District. If either of these gentlemen represent you, take a moment to call their offices and point out their voting mistake.

Republicans that voted No were Mike Rogers and Mo Brooks from Alabama's 3rd and 5th Districts. Charles Boustany from the 3rd District in Louisiana and Chuck Fleischmann from the 3rd District in Tennessee (includes Chattanooga) also opposed the restriction. If these elected officials represent you, please take a moment to contact them and thank them for breaking ranks to support local authority.

Coverage this week was fast and furious.

Sam Gustin from Motherboard reported on Blackburn's efforts. Gustin checked in with Chris:

"Blackburn's positions line up very well with the cable and telephone companies that give a lot of money to her campaigns," said Mitchell. "In this case, Blackburn is doing what it takes to benefit the cable and telephone companies rather than the United States, which needs more choices, faster speeds, and lower prices."

Mitchell says that he's sympathetic to the arguments against "preemption"—after all, he works for an organization called the Institute for Local Self-Reliance—but points out that while Blackburn opposes the federal government inserting itself into state law, she apparently has no problem with the states telling cities and municipalities what they can and cannot do.

"The argument that Blackburn puts forth is not coherent," Mitchell said. "It's just politics."

Gustin and the International Business Times were only a few of the many reporters that connected the dots between Blackburn's campaign balance sheet and her concern for big ISPs. From IBT:

Blackburn’s top campaign donors include private telecommunications firms that do not want to have to compete with publicly owned ISPs. Her state is home to EPB, a taxpayer-owned power company in Chattanooga that also provides local residents some of the fastest Internet speeds in the world at market-competitive rates. EPB is now aiming to expand its services beyond Chattanooga.

However, to go forward with its expansion plan, EPB needs the FCC to enter the fray, applying its authority to preempt a Tennessee law backed by the private telecom industry that restricts the utility’s ability to move into new regions.

According to campaign finance data compiled by the Center for Responsive Politics, two of Blackburn’s largest career donors are employees and PACs affiliated with AT&T (NYSE:T)  ($66,750) and Comcast (NASDAQ:CMCSA) ($36,600). Those are two of EPB’s private-sector competitors in Chattanooga. Blackburn has also taken $56,000 from the National Cable & Telecommunications Association, the lobby for the big telecoms.

Ars Technica's Jon Brodkin also notes that EPB has turned away local communities that repeatedly request help in areas where broadband is not available. Tennessee law prevents EPB from serving beyond its electric service area. As Brodkin reports, Blackburn is not willing to look beyond the State Capitols.

EFF Logo

Brian Fung, who offered our community networks map for his Washington Post article, delved into the history of the issue. He noted growing support in D.C. for local telecommunications authority. Multichannel News also reported on the opposition to the amendment voiced on the House Floor by New York Representative Jose Serrano. Serrano said:
Whatever happened to localism or local control? This amendment means the Federal Government will tell every local citizen, mayor, and county council member that they may not act in their own best interests. Any such amendment is an attack on the rights of individual citizens speaking through their local leaders to determine if their broadband needs are being met.

The Electronic Frontier Foundation wrote about consumer concerns - the lack of competition and state policy that maintains large corporate monopolies and duopolies:
Projects like community mesh networks and mayors’ attempts to bring fiber to their cities should never be illegal or stifled by misguided state laws. On the contrary, they should be encouraged. That’s because community and municipal high-speed Internet projects provide users more options.
Municipal and community broadband projects offer alternatives, so when companies like Comcast and Verizon are behaving badly, users have somewhere else to go. But right now there are 20 states that have laws that make it make it hard or impossible for communities to take their Internet into their own hands.
The National Journal also published a brief account.
Karl Bode at DSLReports.com summed up the legislative formula that brings us to this point in political time:
The underlying argument from Blackburn and friends continues to be that municipal broadband is the devil -- but letting local massive corporations write state telecom laws (laws that often completely eliminate your right to choose for yourself what your town does or doesn't do, while also resulting in less competition, higher prices, and worse customer service) is perfectly ok.
And my snarky favorite came from Brad Reed, who offered a little sarcasm at BGR.com with "Congresswoman bravely stands up for ISPs’ rights to deliver inferior service with no competition":
Either way, we’re still glad to see that some patriots in this day and age are still standing up to protect our freedoms from the municipal broadband menace. As certain historical figure might have said were she alive today, “Let them eat dial-up!”

Vote Expected Today on Blackburn Amendment Targeting Munis; Call D.C. Now!

Last night, GOP Representative Marsha Blackburn, introduced an amendment intended to destroy local authority for telecommunications investment by severely limiting FCC funding. The amendment, introduced during debate on H.R. 5016, targets 20 states, many with state-erected barriers already in place and/or municipal networks already serving local communities.

The vote was postponed but is expected today (Wednesday) at approximately 2:30 p.m. ET. Now is the time to call the D.C. office of your Representative and tell him or her to vote NO on this amendment. If your Rep has a telecom staffer, ask to speak to him or her first.

The text of the amendment is as follows:

AMENDMENT TO H.R. 5016, AS REPORTED OFFERED BY MRS. BLACKBURN OF TENNESSEE

SEC. ll. None of the funds made available in this Act to the Federal Communications Commission may be used, with respect to the States of Alabama, Arkansas, California, Colorado, Florida, Louisiana, Michigan, Minnesota, Missouri, Nebraska, Nevada, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, and Wisconsin, to prevent such States from implementing their own State laws with respect to the provision of broadband Internet access service (as defined in section 8.11 of title 47, Code of Federal Regulations) by the State or a municipality or other political subdivision of the State. 

Multichannel News reports that New York DFLer Jose Serrano reacted the way we hope all Members will when it is time for the vote:

Wheeler has argued that those laws were the result of incumbent broadband providers using their lobbying muscle--he used to be one of those himself as president of the National Cable & Telecommunications Association--to try to block competition.

Rep. Jose Serrano (D-N.Y.), who rose in opposition to the amendment, agreed with Wheeler, saying that the issue is about allowing cities to operate without cable company lobbyists stopping them.   He said the amendment was an attack on individual rights of citizens speaking through their local leaders. "This is to stop states...from choking grassroots competition," he said.

Representative Mike Doyle (D-PA), who opposes the amendment, sent out a statement to his House colleagues when it became clear Blackburn would introduce the amendment (emphasis Doyle's).

Municipal broadband offers a genuine opportunity to inject real competition into the broadband marketplace and gives communities an innovative set of tools that they can use to solve their own problems.  Local communities should have the opportunity to decide for themselves how to invest in their own infrastructure, including the option of working with willing incumbent carriers, creating incentives for private sector development, entering into creative public-private partnerships, or even building their own networks, if necessary or appropriate.…

I urge you to VOTE NO on the Blackburn Amendment.

Local communities should retain the right to decide how to meet their connectivity needs whether through publicly owned infrastructure or through the private market. Rep Blackburn and those that support this amendment do not trust local communities to make the best choices for themselves. The FCC wants to ensure state legislatures do not impose their will as influenced by the telecommunications lobby. Call your Rep!

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!

Erwin, Tennessee Bringing Fiber to Businesses, Residents

Erwin, population 6,000, is planning a pilot project to bring fiber to downtown homes and businesses, reports local media. The project may be lit by November, serving approximately 1,200 premises.

According to the Johnson City Press, Erwin Utilities has already developed a plan to offer Internet and phone service:

The network would offer customers high-speed broadband Internet and telephone services. [Erwin Utilities General Manager Lee] Brown said the project would offer initial Internet of 100 Mbps with the future potential of providing up to 1 Gbps. Brown said a service such as the one Erwin Utilities intends to offer is typically only available in large metropolitan areas.

“Our beginning package is basically the equivalent of what the fastest speed available is currently,” he said.

Erwin Utilities will use the infrastructure for electric system demand response, meter reading, outage reporting, improved communications and operations of electric, wastewater and water equipment, and future load management. If customers are happy with the service in the pilot project area, Erwin Utilities hopes to deploy the technology throughout its entire service area.

Brown told the Press that the municipal utility began investigating the possibility of municipal broadband about 15 years ago, but until now the community could not afford the investment. Costs have gone down bringing the project to approximately $925,000.

The Erwin Utilities Board approved the plan but the Tennessee Comptroller needs to review it. Next the community will hold a public hearing then on to final approval by the Board of Mayor and Alderman.

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.