In March, Washington state legislators passed HB 2664 and sent it on to Governor Jay Inslee, who signed the bill on March 22nd. In the Port of Ridgefield, where the community has been developing plans for a dark fiber network, the community had advocated for the change. Now that the law will be changing for the better, they’re ready to pursue the partnerships they need to spur economic development and improve connectivity for residents and businesses.

Not A New Idea In The Port Of Ridgefield

Back in 2016, we reported how town officials from the Port of Ridgefield had already started setting aside funds to invest in a 42-mile dark fiber loop. The quality of residential and business Internet access options in the community depended on where a premise was located. The community’s Vice President of Innovation Nelson Holmberg described connectivity in the Port of Ridgefield as a “mixed bag”.

The port already had some fiber in place, as many do for communications between facilities and other uses, and port officials wanted to integrate those assets into the design of the new infrastructure. At the time, state law would only allow "rural" ports to use their fiber in any partnership agreements designed to offer connectivity to people or entities outside of the port districts. The Port of Ridgefield did not qualify as "rural". After advocacy from officials from the Port of Ridgefield and other ports around the state, legislators passed HB 2664, which amends the law to remove the restriction. All ports will soon be able to enter into wholesale arrangements with ISPs interested in leasing dark fiber to offer telecommunications services to the public.

Big Plans In Ridgefield

Last fall, the community in Clark County received a $50,000 grant from Washington’s Economic Revitalization Board, which they used to complete a feasibility study. There are approximately 7,...

Last week we reported about the uncertain position that faced Washington ports might find themselves in, should they decide to bring better connectivity to the areas within and around their service areas. We are pleased to learn that the state legislature saw the light and chose to pass the bill without the proposed harmful Senate amendments. It's good news, but the final bill isn't ideal. 

The Problem; The Proposed Solution

Current law allows ports to develop and use fiber optic infrastructure for its own uses both within and beyond their geographic borders; they can only offer wholesale services to other entities within their borders. HB 2664, as introduced, removed the geographic restriction for wholesale services. Communities like Bellingham want to attract ISPs to their cities to compete with incumbents and encourage better prices and services. With the ability to use fiber from the port and possibly integrate it into an expanded network, a city like Bellingham could save time and considerable expense if they wish to invest in Internet infrastructure throughout the community.

Local advocate Jon Humphrey, who has been following this bill and others in his area, noted that the bill had much to do with population density. There had been a change to the original language of bill — the “rural” port requirement, which effectively protected national ISPs from any competition. Humphrey wrote, “This is where the modification of the bill should have ended.”

To The Senate

The bill had no problem passing the House, but when the Senate took it up, they added several amendments that distressed Humphrey and others watching the bill and rooting for it to pass.

We were also concerned about the amendments, including a change that required projects to prioritize unserved and underserved areas. Serving such areas is certainly critical, but this type of language in legislation serves to protect incumbent ISPs from competition rather than to bring high-quality Internet access to areas ignored by those same incumbents. Allowing some level of competition in more densely populated areas helps support projects that reach into less populated unserved and underserved areas.

Humphrey expressed concern...

PUDs in Washington have been developing fiber optic networks as open access infrastructure for decades. Even though ports have the same authorization to develop broadband infrastructure, their authority is limited. Currently, a port may operate telecommunications facilities for its own uses within and beyond its district, but can only provide wholesale services within the districts. A bill in the legislature would remove the ports' geographic limits and expand their authority, but amendments to the bill might cut into the measure's effectiveness.

Ports Want To Partner

HB 2664, which has worked its way through the state legislature aims to change the current situation by expanding a port’s ability to offer wholesale services outside of its district. The goal is to allow a port to use its infrastructure to partner with a private sector ISP to bring better connectivity to residents, businesses, and other entities in the areas around the port’s district.

HB 2664, which passed the House on February 14th, went on to the Senate and passed there, but was amended to require a project to focus on unserved and underserved areas. In places like Bellingham, where a city has grown up around the port and beyond its boundaries, the community could work with the port to make use of its fiber infrastructure to develop better connectivity for economic development, public savings, and better services for schools and libraries. A restriction forcing the port to prioritize on unserved and underserved communities, however, might thwart a project where DSL or cable now serves the community, even though the service is far below what the FCC considers broadband, expensive, or limited to spotty areas in town.

Putting It All Out There

Another amendment requires that any ports that decide to start using their infrastructure for wholesale service must first establish a business plan and have it reviewed by an independent third party consultant. Recommendations and adjustments associated with the review must all occur transparently. Often private sector partners shy away from working with the public sector when state laws put them in such a potentially vulnerable position.

HB 2664 started off as a promising piece of legislation but amendments may considerably limit its effectiveness.

The Process Continues

Due to the amendments in the Senate, the bill will go back to the House....

The Chelan County Public Utility District recently approved their budget and, to the delight of residents and businesses in Chumstick, Merry Canyon, and other areas, they included funding to expand the publicly owned fiber network.

Continuing The Growth Process

News of the expansion underscores the increasingly important role high-quality connectivity plays in everyday life. Fiber and Telecom Manager Mike Coleman told the Chelan PUD at its recent meeting that 73 percent of the county now has access to Fiber-to-the-Home (FTTH). He noted that in 2012, average wait time for new installations was 31 days; the utility has shrunk that time down to 11 days. The demand in the past five years has grown and the number of subscribers has grown from approximately 12,000 in 2012 to almost 15,000 today. The PUD expects to reach an additional 1,059 premises in 2018.

“We’ve come so far in the last five years,” says Coleman. “Our goal is to be a world-class fiber transport provider and to facilitate the retail service providers in providing the best possible customer service they can.”

The PUD plans to increase marketing efforts so more residents and businesses know that fiber from the county is an available alternative. Apparently, many residents didn’t realize that the PUD offered the service until this year.

Coverage of the meeting: