Next City - April 20, 2017

Tennessee Bills Send Message on Municipal Broadband

Written by Josh Cohen

In a world increasingly reliant on high-speed internet for all facets of life, about 34 percent of Tennesseans lack broadband access. Two state bills were considered this year to remedy that. One would’ve allowed city-owned high-speed internet infrastructure to expand at no cost to residents. Another outlined an offer of $45 million in subsidies to private internet service providers to build the same infrastructure. Only the latter passed.

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Unsurprisingly, surrounding towns and suburbs want access to that network. EPB wants to expand as well. But they cannot. A state law pushed by private telecom companies prohibits public utilities with broadband networks from expanding beyond city limits. The Federal Communications Commission overturned that law in 2015, but an appellate court reversed the FCC’s ruling, meaning the law still stands.

State Senator Janice Bowling’s bill would’ve changed Tennessee law to allow municipal broadband providers to expand beyond city limits. Tullahoma, a city in Bowling’s district, also has a municipal broadband network. EPB said it could expand its network infrastructure with cash on hand and private loans. But both Bowling’s bill and its companion in the House died in committee.

Instead, the legislature passed the Tennessee Broadband Accessibility Act, a bill pushed by Governor Bill Haslam. It provides $45 million in tax breaks and grants to private companies such as AT&T and Comcast to build broadband infrastructure in communities that need it.

You might not have made it to Mesa for the Digital Southwest Regional Broadband Summit, but you can now watch some of the speakers and panel conversations. Next Century Cities has posted video from panel conversations and the keynote address from Commissioner Mignon Clyburn.

In her address, Commissioner Clyburn said:

“Access to high-speed broadband is a necessity in today’s 21st century economy, providing a gateway to jobs, education, and healthcare. I am honored to join state and local leaders who are on the front lines of closing the digital and opportunities divide. Working together, we can achieve our shared goal of affordable broadband for all Americans.”

The Commissioner’s full remarks were about 18 minutes long:

Sharing Knowledge on Infrastructure 

Christopher moderated Panel Two, focused on infrastructure needs, which included CISSP President and CTO of CityLink Telecommunications John Brown, Partner at Conexon Jonathan Chambers, Director of Technology at the Southern California Tribal Chairmen’s Association Matt Rantanen, Manager of Tribal Critical Infrastructure at Amerind Riskand Kimball Sekaquaptewa, and Vice President of Digital Innovation at Magellan Advisors Jory Wolf. If you listen to the Community Broadband Bits podcast, you’ll probably recognize most of these voices.

The video lasts one hour thirteen minutes:

The other videos are available on the Next Century Cities YouTube channel page, or watch them here.

Welcome and Introduction: Deb Socia, Executive Director of Next Century Cities and Eric Farkas, Fujitsu Network Communications, 7:32

Net Inclusion 2017 from the National Digital Inclusion Alliance (NDIA) and hosted by the St. Paul Public Library is less than a month away. The event will be on May 16 - 17 in Minnesota and early bird registration prices are available to April 20th.

From the event website:

Participants will discuss current and potential local, state and federal policies and policy innovations that could increase digital equity, current and potential sources of financial and programmatic support of digital inclusion programs, and share digital inclusion best practices and new strategies from across the USA.

Maya Wiley, Senior Vice President for Social Justice and the Henry Cohen Professor of Urban Policy and Management at the New School will present the Keynote address. Read more about her work here.

The event will start on Tuesday, May 16th, with tours of local inclusion programs and lunch at the historic James J. Hill Center. Participants will then move to the St. Paul Central Library and City Hall for the Break-out Sessions. The Charles Benton Digital Equity Champion Award will be presented on Wednesday along with some other special discussions on local government investment and the digital divide.

Christopher will be speaking on Tuesday at the 2:45 p.m. “Statehouse strategies: State-level digital inclusion advocacy and programs” panel. Other familiar speakers include:

• Chris Lewis, Public Knowlege
• Joanne Hovis, CTC
• Laura Breeden, NDIA
• Nicol Turner-Lee, Brookings Institution
• Bernadine Joselyn, Blandin Foundation
• Matt Wood, FreePress

…and many others.

In addition to speakers from national organizations, the agenda includes quite a few participants from St. Paul and Minnesota groups working toward digital literacy and finding ways to bridge the digital divide.

When state legislators in Tennessee recently passed the Broadband Accessibility Act of 2017, tech writers quoted our Christopher Mitchell, who pointed out that the proposal has some serious pitfalls.

Christopher's statement appeared in several articles:

"Tennessee taxpayers may subsidize AT&T to build DSL service to Chattanooga's [rural] neighbors rather than letting the Gig City [Chattanooga] expand its fiber at no cost to taxpayers. Tennessee will literally be paying AT&T to provide a service 1,000 times slower than what Chattanooga could provide without subsidies."

Motherboard

Motherboard noted that the Tennessee legislature had the opportunity to pass a bill, sponsored by Senator Janice Bowling, to grant municipal electric utilities the ability to expand and serve nearby communities. Nope. Legislators in Tennessee would rather pander to the incumbent providers that come through year after year with generous campaign contributions:

To be clear: EPB wanted to build out its gigabit fiber network to many of these same communities using money it has on hand or private loans at no cost to taxpayers. It would then charge individual residents for Internet service. Instead, Tennessee taxpayers will give $45 million in tax breaks and grants to giant companies just to get basic infrastructure built. They will then get the opportunity to pay these companies more money for worse Internet than they would have gotten under EPB's proposal.

The Motherboard reporter quoted Bowling from a prior article (because, like the movie "Groundhog Day," she keeps finding herself in the same situation year after year):

"What we have right now is not the free market, it's regulations protecting giant corporations, which is the exact definition of crony capitalism," she said.

TechDirt Gets Personal

Tennessee Legislature Passes Broadband Accessibility Act, Delivers Hollow "Victory"

While Governor Haslam's Signature Legislation Sounds Great, AT&T Will Be Laughing all the Way to the Bank

Contact:

Christopher Mitchell

christopher@ilsr.org

MINNEAPOLIS, MN - Late yesterday, the Tennessee Legislature officially sent Governor Bill Haslam's signature legislation, the Broadband Accessibility Act of 2017, to his desk. Unfortunately, this bill is more about making taxpayer dollars accessible to AT&T than ensuring rural regions get modern Internet access.

"What we have on one side is a taxpayer-funded subsidy program, and on the other we have a subscriber-based model," says Christopher Mitchell, director of the Community Broadband Networks initiative at the Institute for Local Self-Reliance. "The tragic thing is, AT&T is a taxpayer subsidized monopoly in rural Tennessee that only has to provide a service far slower than the definition of broadband. Locally-rooted networks like Chattanooga's EPB not only offer nation-leading services but have tremendous community support."

With this bill's passage, the Tennessee General Assembly will likely not pass any other broadband legislation during this session. The Broadband Accessibility Act won't improve Tennessee's rating as 29th in Internet connectivity, but it will do a great job of lining AT&T's pockets. As we've tracked throughout the session, there are a number of bills worth supporting that would actually increase connectivity and allow municipalities to take part in their own broadband future.

Washington Post - April 11, 2017

Most Americans want to let cities build and sell homegrown Internet service

Written by Brian Fung

With Internet providers ranking near the bottom of customer satisfaction surveys, 7 in 10 Americans say their towns or communities should be allowed to build new Internet networks that compete with large, established providers, according to new data from the Pew Research Center.

The latest findings add to a long-running battle over restrictions — often written by state legislatures and supported by telecom and cable companies — that prevent local governments from establishing homegrown rivals to ISPs such as AT&T or Charter. And, policy analysts say, the results underscore a gulf in attitudes about public infrastructure spending — although perhaps not the kind you may expect.

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Where they are allowed to, other towns have increasingly moved to build their own independent networks. For example, the government of Colorado Springs, recently became the 100th jurisdiction in the state to vote to overcome the Colorado legislature's restrictions on municipal broadband, said Christopher Mitchell, a public broadband advocate at the Institute for Local Self-Reliance in Minneapolis.

“In Colorado, we see liberal cities like Boulder, conservative cities like Colorado Springs, and many conservative counties putting, in some sense, their money where their mouth is,” said Mitchell.

A recent edition of State Scoop published Christopher's thoughts on the state of competition in the broadband market in the United States. In the piece, Christopher argues how incumbent Internet Service Providers translate their economic power into political power, as seen in the recent vote to strike down consumer privacy protections. He also more widely distributes our recent infographic, "The Market Has Spoken. The Market Is Broken." We've reproduced the op-ed here:

Paths for repairing a broken broadband market

Infographic & commentary: Christopher Mitchell of the Institute for Local Self-Reliance says the new anti-privacy legislation passing through Congress offers further evidence that America's broadband market is broken, but not beyond repair.

To be charitable, one of the reasons that Republicans in Congress moved so quickly to eviscerate privacy protections for internet access subscribers was an overriding belief that the market provides better protection than regulators. To be less charitable, it is possible all the lobbyist contributions to their campaigns had an impact.

But the market is not providing a check to AT&T or Comcast power. They are effectively monopolies — and as we just saw — can translate their market power into political power to wipe out regulations they find annoying.

At the Institute for Local Self-Reliance, where we work to support local economies, this broken market is a major problem. Cable monopolies are bad for local businesses, which become less competitive from paying too much for unreliable Internet access. Communities cannot thrive without high quality Internet access today. 

So we created the infographic below, which offers evidence for our claim that the market is broken. The Federal Communications Commission has documented that most households don’t have a choice in broadband providers, let alone a meaningful choice (where you actually like one of the companies you have to choose between).

“Monopoly” may be a fun family night activity, but if you live in a place where you have little or no choice for Internet access, it’s not fun and it’s not a game.

According to FCC data, most families don’t have a choice in Internet access providers, especially providers they like. Nevertheless, the biggest companies keep reporting increasing revenues every year. People aren’t happy with the service they’re receiving, but companies like AT&T and Comcast continue to thrive. What’s going on?

In a recent State Scoop piece, Christopher wrote: 

[T]he market is not providing a check to AT&T or Comcast power. They are effectively monopolies — and as we just saw — can translate their market power into political power to wipe out regulations they find annoying.

At the Institute for Local Self-Reliance, where we work to support local economies, this broken market is a major problem. Cable monopolies are bad for local businesses, which become less competitive from paying too much for unreliable Internet access. Communities cannot thrive without high quality Internet access today. 

We created this infographic to present the evidence showing that the market is broken. This resource also discusses why creating more competition in the current market is such a challenge. An effective way to overcome this broken market, however, is to consider what hundreds of local communities are already doing - investing in publicly owned Internet infrastructure. Our infographic offers a few examples of different models, each chosen to suit the communities they serve.

Get a larger version of the infographic here. 

Get a larger version of the infographic here.

Kudos to intern Kate Svitavsky who created the infographic.

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LancasterOnline - April 2, 2017

LanCity Connect: Lancaster's municipal broadband is the first of its kind in Pennsylvania

Written by Tim Stuhldreher

Next Century Cities’ just announced that Federal Communications Commissioner Mignon Clyburn will Keynote at the Digital Southwest event on April 18th. You can register now to attend the conference in Mesa, Arizona, at the Mesa Convention Center.

About the event:

This full-day event will bring together broadband champions from federal, state, and local government, as well as community leaders and broadband policy experts from the Southwest and across the nation. The event will feature stories of broadband deployment success, digital inclusion initiatives, financing opportunities, and more.

Participants will hear from mayors, other city officials, state and federal policymakers, rural and tribal representatives, as well as national broadband experts. From financing to infrastructure development to smart cities, panelists will share a wealth of practical information.

The full agenda and participant list is available online, but here’s peek at some of the topics:

• Stories of Success
• Small Cells and Poll Attachments
• Rural and Tribal
• Broadband Financing
• Models 101

Christopher, as Policy Director of Next Century Cities, will participate in the Broadband Infrastructure Panel.

There will be a welcome reception from 5:30 - 7 p.m. at the Media Arts Center in Mesa and the conference starts at 8:30 a.m. at the Convention Center. Register now and be sure to book your hotel.