Reports

Learning from Burlington Telecom: Some Lessons for Community Networks

In little more than a year, Burlington Telecom went from being a hopeful star of the community fiber network movement to an albatross around its neck. The controversies surrounding it have encouraged cable and telephone companies to use it as Exhibit A in their case against communities going into the telecommunications business. However, most of those criticizing Burlington Telecom have very little understanding of what went wrong and how it happened. Examining what actually happened helps to explain how these problems may be avoided, as the vast majority of existing community networks have already done. [Download the full report] In 2007, ILSR issued a case study on Burlington Telecom. The report argued that Burlington Telecom was a model for how communities could build their own next‐generation fiber‐to-the‐home broadband networks. This report revisits and updates that report, analyzes Burlington Telecom’s situation (for better and for worse), and extracts useful lessons for other communities pursuing community fiber networks. In preparation for this report, ILSR examined many documents, including those available due to the investigation of Vermont’s Department of Public Service. We interviewed many people from Burlington, including former BT employees, citizens active around the project, and City Council members. We discussed Burlington’s situation with a number of others intimately involved in community broadband networks around the country and posed questions directly to a representative of BT.

Satellite Internet Connection for Rural Broadband

We are very fortunate that Stephen Cobb has taken the time to fully explain the realities behind satellite connections in Satellite Internet Connection for Rural Broadband: Is it a viable alternative to wired and wireless connectivity for America's rural communities? The answer is no. The technical problems (e.g. latency) inherent in a satellite connection to the Internet should disqualify it from being called "broadband." Satellite connections do not allow users to take full advantage of modern Internet applications, which is a common sense definition of the term broadband. Download the 2 MB version or the print quality 3.3 MB version (both are PDFs). RuMBA is the Rural Mobile & Broadband Alliance that was inspired by Louisa Handem, who does Rural America Radio. RuMBA published this white paper.

Building an Equity and Justice Movement for Communications

Following a four day retreat in September of 2010, Consumers Union and the Center for Media Justice released a report called Building an Equity and Justice Movement for the Internet, Mobile Phones, and Future Networks: A summary of goals, policies, strategies, and best practices by and for groups working for Internet policies that ensure opportunity, democracy, and equity for all. Following a four day retreat in September of 2010, Consumers Union and the Center for Media Justice released a report called Building an Equity and Justice Movement for the Internet, Mobile Phones, and Future Networks: A summary of goals, policies, strategies, and best practices by and for groups working for Internet policies that ensure opportunity, democracy, and equity for all. From the introduction:
This report is a brief summary of the Knowledge Exchange, written for participants and to share with the field. It reflects the open and frank discussions that took place during the convening, as well as the ease of communication among the group.

Publicly Owned Broadband Networks: Averting the Looming Broadband Monopoly

The Institute for Local Self-Reliance is pleased to release the Community Broadband Map and report, Publicly Owned Broadband Networks: Averting the Looming Broadband Monopoly. The map plots the 54 cities, big and small, that own citywide fiber networks and another 79 own citywide cable networks. Over 3 million people have access to telecommunications networks whose objective is to maximize value to the community in which they are located rather than to distant stockholders and corporate executives.

For several years ILSR has been tracking telecommunications developments at the local and state level. We have worked with businesses and communities protecting their right to self-determination via the fundamental infrastructure for the information-based economy. This report offers some of our findings.

The Internet That Might Have Been

The abstract immediately captured my attention:
Policymakers often tell us that the Internet succeeded because of a lack of government regulation. For instance, FCC Commissioner Robert McDowell recently noted that the “evolution away from government intervention has been the most important ingredient in the Internet’s success.” These views, while widely shared, happen to be inaccurate. In reality, a diverse range of federal regulations, subsidies, and nondiscrimination protections sustained the Internet’s historic growth. But what if, as many inaccurately assume, these regulations had never existed? What would today’s Internet look like in such a world? In this essay, I provide a fictional alternate history - in form of a satirical book review - to illustrate how differently the Internet might have developed in a truly privatized world. Although the essay below (beginning after this abstract) is fictional, it draws heavily upon both the regulatory history of the Internet and the policy arguments at issue in today’s leading regulatory proceedings.
This article covers decisions like Carterfone, the FCC's Computer Inquires, giving control over TCP/IP to the National Science Foundation rather than AT&T, and the intentions of the 1996 Telecommunications Act. It also includes a reminder of the difference between open systems and closed systems:
One important way that open policies achieve this goal is by reducing various types of transaction costs. In open networks, new market entrants can completely avoid negotiating with companies who have “gateway control” over the network. The aspiring entrants do not have to pay—nor seek permission from—the network owners for access. Accordingly, these policies encourage vastly more experimentation and amateur “tinkering.” Closed networks, by contrast, produce relatively less innovation because they rely on centralized network owners to introduce—or at least approve—innovation before it becomes available.
This is a fantastic read (really riveting telecom reading -- how often do you get that?) and a good history lesson for people who were not there to see it firsthand over the years.

Local Network Cookbook

A Recipe for Starting a Local Broadband Wireless Network via Federal Stimulus Funding Wally Bowen has created a "cookbook" with step-by-step instructions for creating a community wireless network.

Breaking the Broadband Monopoly

The Institute for Local Self-Reliance is pleased to release this comprehensive report on the practices and philosophy of publicly owned networks. Breaking the Broadband Monopoly explains how public ownership of networks differs from private, evaluates existing publicly owned networks, details the obstacles to public ownership, offers lesson learned, and wrestles with the appeal and difficulty of the open access approach.

[no-glossary]Download[/no-glossary] Breaking the Broadband Monopoly [pdf]

Executive Summary

Across the country, hundreds of local governments, public power utilities, non-profits, and cooperatives have built successful and sometimes pioneering telecommunication networks that put community needs first. These communities are following in the footsteps of the publicly owned power networks put in place a century before. We watch history repeating itself as these new networks are built for the same reasons: Incumbents refusing to provide service or charging high rates for poor service. Cities like Lafayette, Louisiana, and Monticello, Minnesota, offer the fastest speeds at the lowest rates in the entire country. Kutztown’s network in Pennsylvania has saved the community millions of dollars. Oklahoma City’s massive wireless mesh has helped modernize its municipal agencies. Cities in Utah have created a true broadband market with many independent service providers competing for subscribers. From DC to Santa Monica, communities have connected schools and municipal facilities, radically increasing broadband capacity without increasing telecom budgets. These pioneering cities have had to struggle against many obstacles, often created by incumbents seeking to prevent the only real threat of competition they face. Eighteen states have [no-glossary]passed[/no-glossary] laws that discourage publicly owned networks. When lawsuits by entrenched incumbents don’t thwart a publicly owned system, they cross-subsidize from non-competitive markets to temporarily reduce rates in an attempt to starve the infant public network of subscribers. Despite these obstacles, more and more cities are building these networks and learning how to operate in the challenging new era in which all media is online and a high speed tele-communications network is as much a part of the essential infrastructure of a modern economy as electricity was 100 years ago. Communities that have invested in these networks have seen tremendous benefits. Even small communities have generated millions of dollars in cumulative savings from reduced rates – caused by competition. Major employers have cited broadband networks as a deciding factor in choosing a new site and existing businesses have prospered in a more competitive environment. Residents who subscribe to the network see the benefits of a network that puts service first; they talk to a neighbor when something goes wrong, not an offshore call center. At the municipal fiber network in Wilson, North Carolina, they talk of the “strangle effect.” If you have problems with their network, you can find someone locally to strangle. Because public entities are directly accountable to citizens, they have a stronger interest in providing good services, upgrading infrastructure, etc., than private companies who are structured to maximize profits, not community benefits. Residents who remain with private providers still get the benefits of competition, including reduced rates and increased incumbent investment. Some publicly owned networks have decided to greatly increase competition by adopting an “open access” approach where independent service providers can use the network on equal terms. Public ownership and open access give residents and businesses the option of choosing among many providers, forcing providers to compete on the basis of service quality and price rather than simply on a historic monopoly boundary. Perhaps the greatest benefit communities have gained from owning their telecommunications networks is self-determination. Recent court rulings enable private network owners to set their own rules, including increased charges for accessing some sites – much like a cable bill charges more for some programming. The rules are made far from where the customer resides and the criteria used to design such rules maximizes benefit to the private firm, not the community. There is no one model for community broadband. Communities vary greatly in their needs, assets, desires, and culture, not to mention a regulatory environment that varies from state to state. This report presents case studies, evaluates existing networks, offers lessons learned, and highlights the most important issues facing both communities and policy makers at all levels. Public ownership offers the best prospect for building the networks we need to succeed in the 21st century.

Open Access: The Third Way

Andrew Cohill of Design Nine has released a report about Open Access networks: "Broadband for America: The Third Way." I wanted to highlight this report because open access is an important idea that should be promoted and discussed. I believe open access is the most promising way to create the world most people want to live in - fast and affordable networks offering many choices in services and service providers to all Americans. However, though I hold Andrew in high regard, I have some disagreements with the paper that are noted below. This paper comes at an important time. For more than a decade, we have ended each year with less broadband competition than we started with. Politicians and regulators have abandoned policies aimed at promoting competition despite their continued lip service in favor of it. Incumbents have more and more power over both subscribers and entire communities. If we want competition in broadband and cable (and I certainly do!), open access is the only feasible approach. The cost of building the networks is fantastically high whereas the cost of offering services to an additional user are tiny. The result is a network with strong natural monopoly characteristics. Without a network that shares infrastructure (wires, poles, CPE, etc.), the market will trend toward monopoly or duopoly. Wireless complements wired broadband but cannot provide the high speeds and reliability of fiber-optic networks. Even if some metro areas can support multiple networks, most rural areas can barely support one network. Without open access, significant parts of the country cannot have a choice in service providers. Read more...

Tropos Comments on Publicly Owned Wireless Networks

Tropos is a California-based company that sells wireless networking gear, frequently to municipalities. They filed comments with the FCC regarding the National Broadband Plan in response to the request: "Comment Sought on the Contribution of Federal, State, Tribal, and Local Government to Broadband." We fully support their framing of the issue:
Municipalities that own and control their wireless broadband networks, operate public services more efficiently, prioritize broadband traffic for emergencies, and put unused bandwidth to use to attract new businesses, afford educational opportunities to students and in many cases, provide free broadband access to unserved or underserved residents.
Read More

A Public Interest Internet Agenda

The Media and Democracy Coalition put together an impressive report examining a number of policy options to put communities first in telecommunications infrastructure. The report discusses the fundamental importance of broadband - noting that it enables the right to communicate. Having establishing its importance, the report notes that good policy must be well informed and goes on to make multiple recommendations.
Policy should promote competition, innovation, localism, and opportunity. Locally-owned and -operated networks support these core goals of Federal broadband policy, and therefore should receive priority in terms of Federal support. Structural separation of ownership of broadband infrastructure from the delivery of service over that infrastructure will further promote these goals.
The report also touches on other key issues - including Universal Access, a non-discriminatory Internet (network neutrality), symmetrical connections, and privacy. But the most important focus from our perspective is that of localism:
For decades, American communities — both rural and urban — have been neglected and underserved by absentee-owned networks, whose business models clearly do not work in smaller or economically challenged communities. By contrast, in the communities in which they are based, locally-owned networks are more likely than absentee-owned networks to provide rapid response to emergencies, enhanced services, and value-added, social capital benefits such as job-training, youth-mentoring, and small business incubation. In addition, local networks are less likely to outsource jobs, thereby strengthening local and regional economies, while creating more opportunities for community-based innovation and problem-solving. Federal broadband policy that prioritizes support for local networks will produce more competitive markets, consumer choice, and opportunities for innovation.

The Need to Permit Broadband from Public Entities

This report was written by Ciara Torres-Spelliscy, Esq. and Marjorie Heins, Esq. of the Brennan Center for Justice at NYU School of Law to inform a Nebraska Task Force tasked with evaluating a ban on municipally owned broadband networks throughout the state of Nebraska. Unfortunately, the Task Force was stacked with proponents for privately owned networks and seemed unable to consider any other viewpoints (more details here. From the Executive Summary: