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New Video on Economic Development and High-Speed Connectivity in Tennessee

Tennessee Fiber Optic Communities has released another quality video focused on restoring local telecommunications authority. This three minute feature describes the importance of high speed connectivity to local economic development.

The video offers specific examples of businesses that relocated to places like Jackson and Chattanooga, comparing business connectivity in places with municipal networks to areas where high-speed connections from incumbents are costly and hard to come by.

Check out the video from the Tennessee Fiber Optic Communities:

TNFOC_EconomicDevelopment2 from TN For Fiber on Vimeo.

Op-Ed: Community Broadband Networks Drive NC Economy

The Roanoke Daily Herald published this op-ed about local government action for broadband networks on September 25, 2015. We were responding to an earlier Op-Ed, available here. Christopher Mitchell wrote the following op-ed.

Local governments should make broadband choices

Community broadband must be a local choice, a guest columnist writes.

It is stunning any legislator can look at the constituents they serve in rural North Carolina and think, “‘These people don’t need the same high quality Internet access now being delivered in Charlotte and the Triangle. They should be happy with whatever cable and telephone companies offer.”

But that’s just what I think Representatives Jason Saine and Michael Wray are implying in their recent opinion piece on community broadband networks.

By supporting U.S. Sen. Thom Tillis’ legislation to remove local authority for building broadband networks, the two lawmakers are siding with big cable and telephone firms over their own communities.

It is hardly a secret that Time Warner Cable, AT&T, CenturyLink and others are investing too little in rural communities. The majority of residents and local businesses in North Carolina have no real choice today and can expect their bills to go up tomorrow.

Areas served by coops or locally-rooted companies are more likely to see upgrades because they are accountable to the community in ways that national firms are not. Local firms are more willing to invest in better networks and keep prices low because they live in the community.

North Carolina communities stuck with no broadband or slow DSL and cable at best are disadvantaged in economic development and property values. This is why hundreds of local governments have already invested in fiber optic networks — with remarkable success.

Wilson is one example, where the city built the first gigabit fiber optic network in the state. The network has paid all its bills on time and the largest employers in the area all subscribe to it. One local business, which was a vocal opponent of the idea at first, now credits the municipal fiber network with helping her business to expand and reach new clients. The General Manager of Central Computer, Tina Mooring, argues that restrictions on municipal networks hurt the private sector, noting that her clients in areas near Wilson strongly desire access to the high capacity services they cannot get from cable and DSL networks.

Just across the Virginia state line is another approach, where Danville has built a fiber network that is available to private ISPs to offer services. The network has led to new investment and high tech jobs as well as helping existing businesses to expand. Not only have they paid all their bills on time, they make enough net income to contribute $300,000 per year to the general fund.

The fastest citywide network in the nation, offering 10 Gbps was just announced in Salisbury, north of Charlotte. Again, city owned.

This strategy is rarely a partisan issue at the local level. Some 75 percent of the communities that have a citywide municipal network voted for Mitt Romney in 2012. From Maine to Louisiana to California, municipal broadband is a pragmatic question of whether it will improve quality of life and spur economic development.

U.S. Senator Thom Tillis’ legislation to challenge the FCC is not a win for local autonomy. It is an example of distant officials micro-managing local issues.

It is unfathomable the state Attorney General, whose job it is to protect residents and local businesses, has sided with Time Warner Cable and AT&T rather than champion the cause of fast and affordable Internet access for North Carolinians. The state is literally using taxpayer dollars to protect the monopolies of big telecom firms that prevent communities from having a real choice in providers. This is yet another decision that should be made locally, not in Raleigh or D.C.

Christopher Mitchell is the director of Community Broadband Networks at the Institute for Local Self-Reliance in Minneapolis and is @communitynets on Twitter. He writes regularly on MuniNetworks.org.

New York Times Supports Local Authority

In a recent editorial, the New York Times recognized that cord cutting is the wave of the future. They agree with the Coalition for Local Internet Choice, and other advocates for local telecommunications authority that the FCC should take steps to remove barriers to local Internet choice created by states on behalf of cable and telco lobbyists. The Editorial Board notes that laws limiting municipal networks block the ability for consumers to take full advantage of this phenomenon:

Among other things, they should override laws some states have passed that make it difficult or impossible for municipalities to invest in broadband networks.

Even though consumers are moving away from cable TV subscriptions, large corporate providers are making up for losses by an increase in Internet access subscriptions. As a result, they still maintain a significant leverage and consumers still face the same old problem - a lack of competition. Striking down anti-competitive state laws blocking munis would create a healthier balance, argues the Times Editorial Board.

This is an opportunity to respond to customer demand and make policy changes the consumers need, argues the NYTimes. Time to act! 

Customers are clearly saying that they want to watch and pay for TV in a different way. Regulators and media executives ought to heed and respond positively to that message — policy makers by encouraging more competition in the broadband market, and media businesses by making more of their content available online.

Chattanooga Video Explains Potential Gigabit Expansion Process

Following up on our post last week noting the new video from Tennessee Fiber Optic Communities, another video recently posted explains what needs to change in Tennessee law for Chattanooga to expand Internet access beyond the current footprint. EPB Chief Operating Officer David Wade also explains the process the municipal electric distributor will use to connect nearby communities.

Video: 

Tennessee Fiber Optic Communities - Video on Gig Freedom

In a video calling for "Broadband Equity," the Tennessee Fiber Optic Communities have released a video explaining why communities must have their local Internet choice restored.

We encourage you to Like and Follow their campaign on Facebook.

Video: 

Alabama Republican Speaks Out in Favor of Local Authority

As we have learned, communities with municipal networks have tended to be politically conservative. Nevertheless, conservative state level politicians have often supported measures to revoke local authority to encourage local Internet choice. Recently, Alabama State Senator Tom Whatley, a Republican from Auburn, expressed his support for local authority in AL.com.

Whatley introduced SB 438, which would remove service area restrictions on municipal providers and remove the currently restriction preventing other municipalities from providing voice, video, or Internet access services. As he notes in his opinion piece, the bill did not move beyond the Transportation and Energy Committee, but he also asserts that he will be back next year to press for the measure. 

Auburn is near Opelika where the community has deployed a FTTH network to serve residents and spur economic development. If the restrictions are eliminated, Opelika could expand to Auburn and even other rural areas nearby.

Whatley makes comparisons to the strides America made with the national interstate system. He also acknowledges the way Chattanooga's network has transformed what was once described as the "dirtiest city in America." Whatley takes the same approach we encounter from many communities where, after failed attempts to entice private providers to serve their citizenry, eventually decided to take on the task themselves.

He writes:

As a Republican, I believe the private sector is usually the best and most efficient method for providing a service. But when private companies, for whatever reason, make a decision not to serve an area, we should not handcuff the people of that region if they decide to use a public entity to receive that service (in this case, broadband Internet) in order to compete today for the jobs of tomorrow.

ALEC in Savannah: Local News Video Exposes the Corrupt Process of Lawmaking

We have reported on the American Legislative Exchange Council (ALEC) in the past and stories about ALEC sponsored legislative retreats pop up in the news on a regulary basis. Most recently, NBC Channel 11 from Atlanta reported on the shadowy world of big corporate influence in Georgia. 

None of this will be new to anyone familiar with ALEC's shadowy way of doing business, but having it on video makes it more compelling.

Brendan Keefe visited Savannah and tried to observe one of these meetings between ALEC corporate members and state legislators. Even though Keefe and his crew had an official press pass, they were blocked from entering the meeting.

Keefe spoke with a Georgia State Senator Nan Orrock, who once belonged to ALEC. She told him about the meetings, paid for with ALEC funds or "legislator scholarships," and pointed out the true nature of the closed door gatherings:

It's really a corporate bill mill…the truth be told, they write the bills.

Even though Keefe was not able to attend one of the meetings, he did encounter a legislator and several lobbyists in the bar the night before. They didn't mind describing what they were doing in Savannah and who paid the bill. Watch the brief expose below.

We also include a 2013 Real News video with Branden Fischer from the Center for Media and Democracy. He goes more indepth on ALEC's modus operandi and its membership.


Video: 
See video
See video

In NC, Bald Head Island Releases RFP for Gigabit Network

The Village of Bald Head Island, North Carolina, recently released a Request for Proposals (RFP), in its search for an FTTP network. The Village, home to about 160 year-round residents, is accessible only by ferry. Transportation on the island is limited to feet, bikes, and electric golf carts. While they may choose slower transportation methods, the people of the island want speed when it comes to Internet access.

Members of the community began working on the idea in the summer of 2013 as part of an initiative that involved several challenges facing this quiet community. They determined that the economic health of local businesses and quality of life depended on improving access, traditionally provided by AT&T and Tele-Media.

Real estate professionals on the island noted that lack of broadband interfered with the housing market. According to the RFP:

Adequate broadband service is at such a premium that current real estate transactions require conveyance of current Internet service. Otherwise, new installations can take a very long time. Inadequate broadband is a known and aggravating hindrance to daily operations of local businesses. There is very strong demand from prospective real estate buyers for high-speed broadband. Current services are of inadequate quality, and worsen in bad weather and during peak usage.

After reaching out to incumbents and potential new providers, Bald Head Island's Village Council chose to open up the possibilities and issue an RFP.

While the number of year round residents is small, part-time housing, vacation rentals, and local businesses catering to tourists are plentiful. As a result, a fiber network could reach approximately 2,500 premises. The population of the island varies based on holidays, with the number of people as high as 7,000. Community leaders expect it to increase significantly when fiber comes to the island.

We reached out to Calvin Peck, Village Manager:

"We are looking for a partner. We think fiber to the home is the way to do it. At this point there is no broadband on the island that fits the FCC's definition."

The community's main industries are real estate and tourism. While we often think of "getting away from it all" as a vacation gold standard, a number of visitors have told Peck they will vacation elsewhere until the island can get its connectivity up to speed. In addition to professionals who need to remain in touch electronically, children and grandchildren still want to stream Netflix or play games online while on vacation.

We saw similar problems in Cook County, Minnesota, where the community is engaged in a BTOP funded fiber deployment. The tourist industry in the woods also needed access to high-speed Internet to remain viable.

Even though the FCC recently struck down North Carolina laws that prevent municipalities from investing in broadband networks (or engaging in certain types of partnerships), leaders in Bald Head Island choose to move forward carefully. They know that the state challenge to the FCC's Order could restore the state restrictions based on judicial interpretation. The original bill was pushed through by then Speaker of the House Thom Tillis (now in the U.S. Senate), who is hostile to municipal networks.

Peck and village officials in Bald Head Island expect Tillis to strongly defend his bill at the federal level. They also don't know if the state general assembly will simply pass another law that could create another barrier. As a result, says Peck, they are approaching the project from a "worst case scenario" perspective. 

They hope that by the time they are operating, there will be no question, allowing them to move forward without the onerous state law requirements that stifle broadband development.

It is unfortunate that industry dollars so control North Carolina leadership that a place like Bald Head Island, with less than 200 full time residents, must develop a contingency plan to protect itself from its own state government. If the Village of Bald Head Island is willing to take on the task themselves for its own future and its right to do so has been recognized at the federal level, state decision makers should step aside and let the community proceed.

Responses to the RFP are due by June 20, 2015. View a PDF of the entire document at the Village website.

CNBC Runs Op/Ed From iTOK Supporting Local Authority, Munis

Editorials and opinion pieces in favor of local telecommunications authority have been popping up more frequently in recent months. The benefits of increased competition due to the presence of municipal networks has become hard to ignore. Recently, we noticed a commentary published on CNBC from Seth Bailey, chief strategist at iTOK. Bailey supports the February FCC decision that peeled back restrictions in Tennessee and North Carolina. 

Bailey describes the role of munis:

In a fight against this Internet injustice, more than 450 communities have created publicly-owned high-speed fiber-optic networks. Known as municipal broadband, these providers offer Internet services to their areas which are roughly 50 to 100 times faster than the offered cable or DSL connections. In short, municipal broadband allows those in rural areas to have high-speed access similar to that offered to residents of urban areas. Which means the quality of their technological lives do not suffer due to their addresses.

iTOK, a company that focuses on technology support, consumer service, and small business tech assistance, wants to see more restrictions struck down:

To that end, we call on the FCC and state legislators to challenge these laws on a more frequent basis and accelerate the competition among Internet providers. The reality is that if the U.S. wants to stay on the cutting edge of technology and continue to lead global markets in the technological revolution, we cannot allow large corporate ISPs to put restrictions on the type and quality of Internet connection speeds. The government should enact legislation immediately to require ISPs to provide the highest possible speeds to the largest group of people and let whoever can provide the best service win. If that's a large ISP or a municipal ISP it shouldn't matter. Fast, stable and affordable internet is something that everyone should have access to regardless of where they live.

Graphic: LD 1185 Proposes Planning Grants for Munis in Maine

In late April, LD 1185 and several other broadband bills came before the Maine House Energy, Utilities, and Technology Committee. We have seen a flurry of activity in Maine this year as local communities deploy networks, develop plans, or begin feasibility studies. Likewise, the state legislature has been active as House and Senate members try to defibrillate the barely beating heart of the state listed as 49th for broadband availability.

The national providers in Maine - Time Warner Cable and FairPoint have little interest or capacity to invest in high quality services in Maine. Time Warner Cable is more focused on major metros and being acquired. FairPoint is laying off workers and also, positioning itself to be acquired. Fortunately, these big companies aren't the only option for improving Internet connectivity in Maine.

LD 1185, presented by Representative Norm Higgins, seeks to establish $6 million this year in funds for local communities that wish to deploy municipal networks. Maine already has the middle mile Three Ring Binder in place; the focus of this proposal is to help communities get the infrastructure they need to connect to it. In an effort to get the word out about the bill and grow support, Higgins and his team created this graphic explaining the proposal (a 2-page printable edition of the graphic is available for download from the link below):

LD 1185 Graphic

LD 1185 Graphic

According to a recent Legislative Bulletin from the Maine Municipal Association, LD 1185 and LD 1063, which redirects ConnectME towards issuing planning grants, appear to have the most traction of all the Maine bills. Testifying in support of both bills were the Maine Office of the Public Advocate, the ConnectME Authority, the University of Maine, Great Works Internet, Maine Fiber Company, the AARP, and the Coastal and Island Institutes. The Mayors' Coalition, and community officials from Rockport, Isleboro, South Portland, and Orono also testified in favor of the bills.

From the Office of the Public Advocate's Testimony on LD 1185:

The bill proposes to provide municipalities with matching grants to fund broadband planning efforts, and provide technical support to those communities. Providing this kind of assistance to communities is important to ensuring that those communities make informed decisions regarding use of public funds for broadband investment. The bill offers several novel and useful concepts not seen in other legislation that are particularly promising.

As can be expected, Verizon, Fairpoint, Time Warner Cable, and the Telecommunications Association of Maine testified in opposition.