Tag: "preemption"

Posted March 7, 2011 by christopher

Rockingham County has joined Raleigh in officially passing a resolution against legislation to cripple community networks in the state.

 

RESOLUTION
BY THE ROCKINGHAM COUNTY BOARD OF COMMISSIONERS
AGAINST SENATE BILL 87 and HOUSE BILL 129

WHEREAS, Senate Bill 87 and House Bill 129 have been introduced in the 2011-2012 Session of the General Assembly of North Carolina; and

WHEREAS, these bills do not provide a level playing field to cities, towns and counties, but greatly hinder local governments from providing needed communications services, especially advanced high-speed broadband services, in unserved and underserved areas; and

WHEREAS, these bills impose numerous obligations on cities and towns that private broadband companies do not have to meet; and

WHEREAS, private companies, despite having received favorable regulatory and tax treatment to enable broadband investment, have chosen to avoid the financial commitment necessary to provide top quality services to all residents and businesses; and

WHEREAS, while private companies declare top quality service is cost-prohibitive in our country, the United States continues to lose ground to other nations in broadband access, user cost and growth in number of users, falling behind the United Kingdom, Korea, France, Japan and Canada to name a few, and Japan has Internet access that is at least 500 times faster than what is considered high-speed in the United States and at less cost; and

WHEREAS, the bills would prohibit North Carolina cities and towns from using federal grant funds to 

deploy or operate locally-owned or operated broadband systems, thereby denying N.C. residents access to federal assistance available to the rest of the country and hindering employment opportunities; and

WHEREAS, deployment of high-speed Internet is a new public utility vital to the future economic development, educational outreach and community growth in North Carolina necessary to replace lost textile, tobacco, furniture and manufacturing jobs; and

WHEREAS, the General...

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Posted March 4, 2011 by christopher

On Wednesday, the bill to effectively ban community networks in North Carolina was passed out of the House Public Utilities Committee and will likely be heard by the Finance committee next week.

The audio is available here from the Wednesday meeting [mp3, 45 min].

It never fails to shock me how cavalierly some Committees refuse to discuss the bill, agreeing to let another Committee fundamentally change the bill. There is practically no discussion of what this bill does and very little discussion about the actual pros and cons of different approaches to providing broadband.

Listening to the discussion, one gets the distinct impression that a household either has "broadband" or doesn't. There is no discussion of the known failure of the private sector to invest in next-generation networks. If I were a Representative in North Carolina, I would be sure to ask why no private sector provider is building next-generation fiber-optic networks like those in Wilson, Salisbury, and hundreds of communities served by Verizon's FiOS outside the state. There is no discussion of the wisdom of relying on last-century cable and copper networks.

Horse and buggy

Those pushing this bill have no idea what they are doing. They may gut the potential for full fiber-optic networks in the state as the rest of the world charges forward building these networks. They are defending the horse-and-buggy industry in the age of automobiles.

Listen for the North Carolina Chamber of Commerce weighing in against community networks, the only entities investing in the next-generation networks needed for the digital economy. The Chamber cares more about its high profile members (cable and phone companies) than the 99% of businesses in North Carolina that need the kind of broadband available in Wilson and Salisbury. These organizations should not be allowed to get away with pretending to represent business interests in the state. They represent the...

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Posted March 1, 2011 by christopher

As the North Carolina Legislature considers HB129 and S87 to greatly limit community broadband networks (we analyzed the bill here), it is worth taking a step back to understand why companies like Time Warner Cable provide broadband that is unreliable and comparatively both slow and costly without having other companies come in to offer a better product. The problem is basic economics: the problem of natural monopoly.

Ever wonder why you generally don't have a choice between two major operators like Comcast and Time Warner Cable? They have carved up the market due to the costs and difficulty of directly competing with one another.

Some folks have a choice of cable companies -- RCN and Knology, for instance, have been successful overbuilders in a few regions (though they went through troubles far worse than most public networks that have been termed "failures").

But for the most part, overbuilding an incumbent cable company is all but impossible -- especially for a private sector company looking for a solid return on investment inside a few years. In the face of a new cable entrant, massive companies like TWC start lowering prices, offering cash or other enticements, and lock both residents and businesses into contracts to deny the entrant any subscribers.

Companies like TWC can do this because they have lower costs (through volume discounts for gear, content, and even marketing synergies as well as because they long ago amortized the network construction costs) and can take losses in one community that are cross-subsidized by profits from non-competitive areas. New entrants, both private and public, have higher costs as well as a learning curve.

This is why we have so little broadband competition. Without competition, the few providers we have invest less and charge more, which is other countries are rapidly surpassing us (not because we have large rural areas, nonetheless a popular straw man).

In the face of this reality, communities have built their own networks for a variety of benefits, including creating competition or changing the dynamic of a duopolistic "market." Massive incumbent providers responded by claiming competition from communities was unfair and using their lobbying power to...

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Posted March 1, 2011 by christopher

A coalition of private companies, including Alcatel-Lucent, American Public Power Association, Atlantic-Engineering, the Fiber to the Home Council, Google, Intel, OnTrac, Telecommunications Industry Association, and Utilities Telecom Council, have released a letter opposing HB129/S87 in North Carolina. The bill would create considerable barriers to community broadband networks and public-private partnerships, effectively outlawing both given the restrictive language. We examined this bill here>. This the text of the letter they released:

February 25, 2011
via email

Representative Thom Tillis
Speaker of the House
Room 2304
16 West Jones Street
Raleigh, NC 27601-1096

Senator Phil Berger
Senate President Pro Tempore
Room 2008
16 W. Jones Street Raleigh, NC 27601-2808

Dear Representative Tillis and Senator Berger:

We, the undersigned private-sector companies and trade associations, urge you to oppose H129/S87 (Level Playing Field/Local Competition bill) because it will harm both the public and private sectors, stifle economic growth, prevent the creation or retention of thousands of jobs, hamper work force development and diminish the quality of life in North Carolina. In particular, this bill will hurt the private sector in several ways: by curtailing public-private partnerships, stifling private companies that sell equipment and services to public broadband providers, and impairing educational and occupational opportunities that contribute to a skilled workforce from which businesses across the state will benefit.

The United States continues to suffer through one of the most serious economic crises in decades. The private sector alone cannot lift the United States out of this crisis. As a result, federal and state efforts are taking place across the Nation to deploy both private and public broadband infrastructure to stimulate and support economic development and jobs, especially in economically distressed areas. North Carolina has been the beneficiary of these efforts, as MCNC, with its $148 million award, is now building a state-of-the-art fiber optic network that will cross 106 counties and make available low-cost, internet connections to numerous high-cost, low-density, communities that the state’s private providers have...

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Posted February 22, 2011 by christopher

As part of the effort to stop the bill that will codify Time Warner Cable's monopoly in North Carolina, we published a press release today (previous coverage of the bill here):

While the rest of the world is working to become more innovative and competitive, the North Carolina General Assembly is considering a bill that will stifle innovation, hurt job creation and slow economic development. The Bill, H129/S87 will effectively prevent any community from building a broadband network and impose onerous restrictions on existing networks, including Wilson’s Greenlight and Salisbury’s Fibrant. Greenlight and Fibrant are the most technologically advanced citywide networks in the state, comparative to the best available in the U.S. and international peers, according to a study released by the Institute for Local Self-Reliance (ILSR) in November, 2010.

This bill will protect the aging networks of incumbent cable companies—furthering their effective monopolies—that have refused to invest in newer, faster technologies.

“This bill is a job and competitiveness killer. I don’t know why North Carolina wants to protect old technology, but if they want to get on the information super highway in a horse and buggy—the world is going to pass them by,” said Christopher Mitchell, Director of ILSR’s Telecommunications as Commons Initiative.

The bill says it is an act to “protect jobs,” a claim that puzzles Mitchell. “Community owned networks create jobs both directly and indirectly – and there is no evidence they have resulted in the elimination of any jobs.”

You can now Sign a petition showing your support for community networks in North Carolina - please make sure this link circulates among any contacts you have in NC!

Posted February 17, 2011 by christopher

As we predicted, Time Warner Cable is pushing a new bill in North Carolina to limit competition and local authority to build broadband networks (Save NC Broadband is alive again). H129 purports to be An Act to Protect Jobs and Investment By Regulating Local Government Competition with Private Business - [download a PDF of the bill as introduced].

This bill is another example of state legislators refusing to allow communities to make their own decisions -- imposing a one-size-fits-all policy on communities ranging from the metro area of Charlotte to small communities on the coast and in the mountains. Many of the provisions in this bill apply tough constraints on the public sector that are not applied to incumbent providers, but this analysis focuses only on a few.

Let's start with the title:

An Act to Protect Jobs and Investment by Regulating Local Government Competition with Private Business

There is no support anywhere in this bill to explain what the impact of community networks is on jobs. Nothing whatsoever. There is a claim that "the communications industry is an industry of economic growth and job creation," but ignores the modern reality that that the communications industry goes far beyond the private sector. In fact, the recent history of massive telecommunications providers is one of consolidation and layoffs. It is the small community owned networks that create jobs; larger firms are more likely to offshore or simply cut jobs.

Certainly all businesses depend on communications to succeed. Unfortunately, they are often limited to very few choices because the of the problem of natural monopoly. This is why many communities have stepped up, including three in North Carolina (two of whom offer the offer the most advanced services in the...

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Posted February 2, 2011 by christopher

Durham's Herald Sun published our op-ed about community broadband networks in North Carolina. Reposted here:

Who should decide the future of broadband access in towns across North Carolina? Citizens and businesses in towns across the state, or a handful of large cable and phone companies? The new General Assembly will almost certainly be asked to address that question.

Fed up with poor customer service, overpriced plans and unreliable broadband access, Wilson and Salisbury decided to build their own next-generation networks. Faced with the prospect of real competition in the telecom sector, phone and cable companies have aggressively lobbied the General Assembly to abolish the right of other cities to follow in Wilson and Salisbury's pioneering footsteps.

The decision by Wilson and Salisbury to build their own networks is reminiscent of the decision by many communities 100 years ago to build their own electrical grids when private electric companies refused to provide them inexpensive, reliable service.

An analysis by the Institute for Local Self-Reliance (http://tiny.cc/MuniNetworks) compares the speed and price of broadband from incumbent providers in North Carolina to that offered by municipally owned Greenlight in Wilson and Fibrant in Salisbury.

Wilson and Salisbury offer much faster connections at similar price points, delivering more value for the dollar while keeping those dollars in the community. For instance, the introductory broadband tiers from Wilson (10 downstream/10 upstream Mbps) and Salisbury (15/15 Mbps) beat the fastest advertised tiers in Raleigh of AT&T (6/.5 Mbps) and TWC (10/.768 Mbps). And by building state-of-the-art fiber-optic networks, subscribers actually receive the speeds promised in advertisements. DSL and cable connections, for a variety of reasons, rarely achieve the speeds promised.

Curbing innovation

The Research Triangle is a hub of innovation but is stuck with last-century broadband delivered by telephone lines and cable connections. In the Triangle, as in most of the United States, broadband subscribers choose between slow DSL from the incumbent telephone...

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Posted January 30, 2011 by christopher

In 2006, this short documentary helped to stop a push from incumbent providers to gut local authority over telecommunications and cable.  Unfortunately, several states then gutted that same local authority, leading to higher prices for consumers and, surprise surprise, no real increase in competition.  

Posted January 24, 2011 by christopher

It's 2011 and time for Qwest to renew a push to gut local authority in a number of states - Idaho and Colorado to start. An article for the Denver Post explains the argument:

Phone companies say state-level oversight of video franchising fosters competition because it is less cumbersome for new entrants to secure the right to offer services.

Many states have also eliminated the condition that new video competitors must eventually offer service to every home in a given municipality, a requirement placed on incumbent cable-TV providers.

Gutting local authority is the best way to increase the disparities between those who have broadband and those who do not. Qwest and others are only interested in building out in the most profitable areas -- which then leaves those unserved even more difficult to serve because the costs of serving them cannot be balanced with those who can be served at a lower cost.

The only reason that just about every American living in a city has access to broadband is because franchise requirements forced companies to build out everyone. Without these requirements, cable buildouts would almost certainly have mirrored the early private company efforts to wire towns for electricity -- wealthier areas of town had a number of choices and low-income areas of town had none.

In Idaho, those fighting back against this attempt to limit local authority are worried that statewide franchising will kill their local public access channels - a reality that others face across the nation where these laws have passed.

The channels, which are also used to publicize community events, provide complete coverage of Pocatello City Council, Planning and Zoning and School District 25 board meetings, as well as candidate forums before elections.

Without these local channels, how could people stay informed about what is happening in the community? Local newspapers are increasingly hard to find. In many communities, these channels are the last bastion of local news. 

This fight over statewide franchising goes back a number of years, but the general theme is that massive incumbent phone companies promise that communities would have much more competition among triple-play networks if only the public...

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Posted December 21, 2010 by christopher

Today, the FCC is poised to pass a half-ass attempt to preserve the open Internet against the interests of massive gatekeepers like AT&T and Comcast. Tim Karr rightly calls it Obama's "Mission Accomplished" moment.

Fortunately, the likely result will be a couple of years in the courts before the rule is thrown out because the FCC has not properly ground its half-ass actions in any authority it has received from Congress. Perhaps when the FCC next has to deal with this, we'll have an FCC Chairperson with a backbone and a stronger interest in what is best for hundreds of millions of Americans than what is best for AT&T and a few other corporations.

The FCC and supporters of this let's-keep-the-Internet-partly-open "compromise" will lump all critics as being extremist looneys. (Okay, the Republicans who oppose this might fit that description as they are literally making things up or totally confused about what is being decided).

But let's look at the crazy looney rhetoric of FCC Chair Genachowski last year:

Genachowski proposed that the FCC formalize its four principles of network openness. To encourage broadband deployment and preserve and promote the open and interconnected nature of the public Internet, consumers are entitled:

  • to access the lawful Internet content of their choice.
  • to run applications and use services of their choice, subject to the needs of law enforcement.
  • to connect their choice of legal devices that do not harm the network.
  • to competition among network providers, application and service providers, and content providers.

To these, Genachowski proposed adding two more: The first would prevent Internet access providers from discriminating against particular Internet content or applications, while allowing for reasonable network management. The second would ensure that Internet access providers are transparent about the network management practices they implement.

Not only has Genachowski sold out on what he once stated was absolutely necessary to maintain the Open Internet, he has rolled back the...

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