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.

“I find that infuriating. Chattanooga has not only one of the best networks in the nation, but arguably one of the best on Earth and the state legislature is prohibiting them from serving people just outside of their city...

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.

Break-out sessions discuss a range of issues, including legislation and policy,...

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.

Mitchell is deeply frustrated with this situation: "Chattanooga is the only city on this planet that has universal access to 10 Gigabit symmetrical Internet access. It is a stunning achievement and Tennessee taxpayers may subsidize AT&T to build DSL service to Chattanooga's neighbors rather than letting the Gig City expand its fiber to neighbors at no cost to taxpayers. Tennessee will literally be paying AT&T to provide a service 1000x slower...

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).

Despite widespread...