Tag: "preemption"

Posted July 31, 2014 by christopher

For the first time in many years, we have an opportunity to repeal some particularly destructive state laws limiting investment in community networks. To be clear, this is our best shot. I've already covered the background and offered a blanket encouragement for you to post comments.

Chairman Wheeler has been looking for an opportunity to expand local authority by removing state laws that limit investment in Internet networks. The cable and telephone companies are marshalling their considerable forces to stop him. But we can, and must help.

We have spent years analyzing these state barriers for ways to restore local authority. The FCC, using its Section 706 power, is our best shot. The carriers have far too much power in the state capitals, which means that even when we have public opinion squarely on our side, the carriers easily kill state bills to restore local authority.

Anyone who thinks we have a better shot at rolling back state barriers individually in the states rather than with this FCC is wrong. Really wrong. Between Art Pope and Time Warner Cable lobbyists, there is no hope for any legislation that would threaten cable monopolies in North Carolina.

These petitions on municipal networks are not some FCC smokescreen related to the network neutrality proceeding. In fact, we at ILSR remain publicly frustrated with the FCC's failure to act more strongly in protecting the open Internet. But Chairman Wheeler, for reasons that seem somewhat personal to him, is particularly motivated to remove the anti-competitive laws passed by big cable and telephone company lobbyists. It strikes a chord with him and I, for one, am glad to see him taking action on it.

Anyone who claims action on municipal networks is some sort of trade for giving up on network neutrality is, once again, really wrong. For one thing, a trade requires two parties and I have yet to identify a single entity that would trade meaningful open Internet protections for rolling back a few barriers to municipal networks. Haven't found one. Not even us.

Further, restoring local authority on municipal networks is not a trade for the FCC later preempting local authority over the rights-of-way because once again...

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Posted July 31, 2014 by lgonzalez

Sallisaw, home of DiamondNet, is the latest community to publicly express its desire to put telecommunications authority in the hands of the locals. On July 14, the Sallisaw Board of City Commissioners approved Resolution 2014-17 in support of the FCC's intention to preempt state anti-muni laws.

A Resolution Supporting Telecommunications Infrastructure For Local Governments

WHEREAS, local governments, being closest to the people are the most accountable level of government and will be held responsible for any decisions they make; and

WHEREAS, community/municipal broadband networks provide opportunities to improve and encourage innovation, education, health care, economic development, and affordable Internet access; and

WHEREAS, historically, the City of Sallisaw has ensured access to essential services by providing those services that were not offered by the private sector at a reasonable and competitive cost; and

WHEREAS, in 2004 the City of Sallisaw took steps to construct its own Fiber to the Premise telecommunications system and now provides the community with quality state-of-the-art broadband services including video, High Speed Internet and telephones services, that otherwise would not be available today; and 

WHEREAS, local government leaders recognize that their economic health and survival depend on connecting their communities, and they understand that it takes both private and public investment to achieve this goal; and

WHEREAS, the DC Circuit Court has determined that Section 706 of the Federal Telecommunications Act of 1996 unambiguously grants authority to the Federal Communications Commission (FCC) to remove barriers that deter network infrastructure investment;

NOW, THEREFORE, BE IT RESOLVED that the Board of City Commissioners of the City of Sallisaw, Oklahoma, supports FCC efforts to ensure local governments are able to invest in essential telecommunications infrastructure, if they so choose, without state-imposed barriers to discourage such an approach.

ADOPTED by the Governing Body on 14th day of July, 2014.

When City staff began researching the possibility of a municipal network in 2002, they discovered that dial-up was the only option for residents; businesses had the option of T1...

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Posted July 30, 2014 by tanderson

Wabash County, Indiana wants to expand its access to high speed internet through a fiber optic network build out, and is planning to use a distinctive financial tool to do so. The Wabash County Redevelopment Commission has begun the process of assigning a special Economic Development Area designation for the purpose of helping to finance new fiber deployment through parts of the mostly rural county of 33,000 people.

Tax Increment Financing (TIF) is a method of public financing that uses future gains in property or sales taxes within a defined area to subsidize a redevelopment or infrastructure project. A local jurisdiction can borrow money up front, build the project, and then use the increased tax receipts it generates to pay off the debt over a period of years. The concept is actually pretty simple: capture the value that something will have in the future to build it now.

TIF  has been a popular approach among local politicians around the country for decades as a way to work around tight budgets and finance improvements in blighted areas, often in the form of public infrastructure. It has sometimes drawn criticism, especially in cities like Chicago where it is very heavily used. One downside is that it effectively takes properties off the general tax rolls. 

More important for our purposes, however, is that the use of TIF for next generation fiber optic networks is a fairly new phenomenon. While municipal networks around the country have used a wide range of financing approaches to cover upfront costs, most have revolved in some way around bonds that are repaid from network revenue. Using TIF to capture the increased property value that a fiber optic network would create is an interesting approach.

In the case of Wabash County, it’s not yet clear exactly how the funds would be used. There is a local private incumbent provider, Metronet, which received $100,000 last year to match its own $1 million investment to bring fiber to a town on the north edge of the county. The county also has a cooperative utility (Wabash County REMC) that provides power and telephone services in rural areas and has expressed interest in using TIF to build out a fiber network. Whichever entity ultimately receives TIF money, it does not appear that...

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Posted July 25, 2014 by lgonzalez

On June 18 Holly Springs, home to approximately 25,000 people, started saving money with its new fiber I-Net. Last summer, the Town Council voted to invest in fiber infrastructure as a way to take control of telecommunications costs. Just one year later, the 13-mile network is serving community anchor institutions.

After exploring options with CTC Technology and Energy, Holly Springs determined that deploying their own $1.5 million network was more cost effective than paying Time Warner Cable for data services. Annual fees were $159,000; over time those costs certainly would have escalated. According to the Cary News, Holly Springs anticipates a future need for more bandwidth:

“And we wouldn’t have been able to actually afford as much (data) as we need,” [Holly Springs IT Director Jeff Wilson] said. “Our costs were going to be getting out of control over the next couple of years.”

Because state law precludes the town from offering services to homes or businesses, Holly Springs plans to use the new infrastructure in other ways. State law allows the community to offer free Wi-Fi; the town will also lease dark fiber to third-party providers. According to the News article, the town has already entered into a 20-year contract with DukeNet, recently acquired by Time Warner Cable. DukeNet may expand the fiber to the Holly Springs Business Park for commercial clients.

The community's free Wi-Fi in public facilities is approximately 20 times faster than it was before the deployment, reports the News:

When the town activated the network on June 18, “People told us they could tell the difference immediately,” said Jeff Wilson, Holly Springs’ IT director.

According to the News, the fiber network allows the city to expand free Wi-Fi to more green spaces. Cameras at baseball fields now stream live video of games; parents and grandparents can watch activities online if they cannot attend games in person.

For more on the community and the project, check out Chris' conversation with Jeff Wilson in...

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Posted July 24, 2014 by christopher

Chattanooga and Wilson, North Carolina, are two of the most successful municipal fiber networks by a variety of metrics, including jobs created, aggregate community savings, and more. This has led to significant demand from surrounding communities for Wilson and Chattanooga to expand. We have profiled both of them in case studies: Wilson and Chattanooga.

Expecting this outcome, the big cable and telephone companies had pressured the states to limit where municipal networks can offer service, unlike the private companies that can invest anywhere. Wilson cannot expand beyond county limits. Chattanooga already serves its entire electrical footprint, which stretches into northern Georgia and includes a few other towns but cannot serve anyone beyond that.

FCC Chairman Wheeler has been quite clear that he intends to remove barriers to competition that limit local authority to build community networks.

Today, Wilson and North Carolina have filed petitions with the FCC to remove restrictions on their ability to expand and offer services to nearby communities. These barriers were created after major lobbying campaigns by Comcast, AT&T, and Time Warner Cable, one of which we chronicled in The Empire Lobbies Back. We have also explained how the FCC can take this action and interviewed Harold Feld on the matter.

Read press statements from Chattanooga EPB and Wilson, North Carolina [PDF below]. Also, take a look at Wilson's Full Petition and Exhibits and...

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Posted July 23, 2014 by christopher

Boulder is the latest Colorado community to recognize the benefits of using city-owned fiber to spur job growth and improve quality of life. Boulder Director of Information Technology Don Ingle joins us for episode 108 of the Community Broadband Bits podcast.

We discuss the many ways in which Boulder has benefited from community owned fiber over the past 15 years and the smart policies they have used to expand conduit throughout the community.

We finish with a discussion about the upcoming referendum that Boulder will likely place on the November ballot to regain local authority to use and expand its fiber assets to encourage job growth and increase residential options.

Read the transcript from this show here.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address.

This show is 17 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

Listen to previous episodes here. You can can download this Mp3 file directly from here.

Find more episodes in our podcast index.

Thanks to Waylon Thornton for the music, licensed using Creative Commons. The song is "Bronco Romp."

Posted July 16, 2014 by lgonzalez

Last night, GOP Representative Marsha Blackburn, introduced an amendment intended to destroy local authority for telecommunications investment by severely limiting FCC funding. The amendment, introduced during debate on H.R. 5016, targets 20 states, many with state-erected barriers already in place and/or municipal networks already serving local communities.

The vote was postponed but is expected today (Wednesday) at approximately 2:30 p.m. ET. Now is the time to call the D.C. office of your Representative and tell him or her to vote NO on this amendment. If your Rep has a telecom staffer, ask to speak to him or her first.

The text of the amendment is as follows:

AMENDMENT TO H.R. 5016, AS REPORTED OFFERED BY MRS. BLACKBURN OF TENNESSEE

SEC. ll. None of the funds made available in this Act to the Federal Communications Commission may be used, with respect to the States of Alabama, Arkansas, California, Colorado, Florida, Louisiana, Michigan, Minnesota, Missouri, Nebraska, Nevada, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, and Wisconsin, to prevent such States from implementing their own State laws with respect to the provision of broadband Internet access service (as defined in section 8.11 of title 47, Code of Federal Regulations) by the State or a municipality or other political subdivision of the State. 

Multichannel News reports that New York DFLer Jose Serrano reacted the way we hope all Members will when it is time for the vote:

Wheeler has argued that those laws were the result of incumbent broadband providers using their lobbying muscle--he used to be one of those himself as president of the National Cable & Telecommunications Association--to try to block competition.

Rep. Jose Serrano (D-N.Y.), who rose in opposition to the amendment, agreed with Wheeler, saying that the issue is about allowing cities to operate without cable company lobbyists stopping them.   He said the amendment was an attack on individual rights of citizens speaking through their local leaders. "This is to stop states...from...

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Posted July 15, 2014 by lgonzalez

The National League of Cities (NLC), National Association of Counties (NACo), and National Association of Telecommunications Officers and Advisors (NATOA) joined together this morning to send a letter to Congress expressing their opposition to anti-muni legislation being discussed in the House.

As we reported yesterday, it is imperative that concerned constituents speak out against two anticipated amendments that can stifle local investment or end local telecommunications authority. The amendments are expected within the next few days, so we need to act now.

Appropriations bill H.R. 5016, introduced on July 2nd, provides funding for financial services and general government, including the FCC. H.R. 5016 will be the vehicle to force through language to further restrict community broadband networks.

The amendment most damaging to local telecommunications authority is expected to come from Rep. Marsha Blackburn (R-TN). The amendment's purpose is to remove authority from the FCC to preempt state laws preventing local broadband infrastructure investment. By restricting the FCC's use of its funding, the legislation will choke the agency's ability to explore its plan to influence anti-muni state barriers so local communities can decide their own fates.

As the NLC, NACo, and NATOA write in their letter to Congress:

The National League of Cities (NLC), the National Association of Counties (NACo), and the National Association of Telecommunications Officers and Advisors (NATOA) strongly urges you to oppose any amendment to HR 5016 that would hamstring the Federal Communications Commission (FCC) from taking any action on – indeed, even discussing – the issue of state laws that prohibit or restrict public and public/private broadband projects. It is clear that such laws harm both the public and private sectors, stifle economic growth, prevent the creation or retention of thousands of jobs, and hamper work force development.

...

The private sector alone cannot enable the United States to take full advantage...

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Posted July 15, 2014 by christopher

Holly Springs, a town of about 25,000 in the Triangle region of North Carolina, has built its own network to connect community anchor institutions and has an interest in using it to spur economic development and other community benefits but a 2011 law pushed by Time Warner Cable makes some of that more difficult.

City IT Director Jeff Wilson joined me for episode 107 of the Community Broadband Bits podcast. We discussed why they decided to build a municipal network and how they have just finished the actual build.

We also discuss the savings they anticpate from owning the network and how local residents were hopeful that the network could be expanded to connect homes and businesses before learning that state law restricted them from doing that.

Read our additional coverage of Holly Springs.

Read the transcript from our discussion here.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address.

This show is 13 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

Listen to previous episodes here. You can can download this Mp3 file directly from here.

Find more episodes in our podcast index.

Thanks to Waylon Thornton for the music, licensed using Creative Commons. The song is "Bronco Romp."

Posted July 14, 2014 by lgonzalez

H.R. 4752 from Rep Latta (R-OH) will be brought up in the House, likely as an appropriations rider, some time within the next few days. In the past several months, the municipal network movement has made great strides. If passed, this bill's content can be a significant setback. We encourage you to call the D.C. office of your elected officials and tell them to vote NO on H.R. 4752, NO on any rider based on H.R. 4752's language, and NO on any amendment that restricts FCC authority.

Be very specific when it comes to municipal networks - local governments should be the ones to decide whether a network makes sense. These amendments are designed to strip the power from the FCC that would allow it to ensure local governments can make this decision.

H.R. 4752's language would prevent the FCC from regulating Internet service providers under Title II. There is also some indication that the House will consider an amendment on municipal broadband; constituents need to stop the rider and the amendment from moving forward. 

This bill was introduced months ago. According to OpenSecrets.org, its Republican sponsor has received more than $320,000 in campaign contributions from the communications sector since 2007. 

The Free Press has also spoken out against this bill, which would help destroy network neutrality and this lethal amendment.

Get the word out to your communities ASAP! Call your Rep's D.C. office and urge him or her to vote NO on this bill or on any similar rider and NO on any amendment restricting FCC authority. As you know, if the FCC is limited in this way, its authority to take other meaningful action to support municipal networks will be compromised.

When you call your Representative's D.C. office, ask first to speak to the staffer in charge of telecom. If you live in a community where you have benefitted from a municipal network or in a community that is exploring the option, share your experiences. Let them know that you not want Congress limiting FCC authority in this way.

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