Tag: "jobs"

Posted October 7, 2011 by christopher

Rachel Maddow reminds us that many areas of America still do not have broadband in her coverage of the broadband stimulus funds prior to an interview with USDA Secretary Vilsack on October 5 (transcript).

While introducing Secretary Vilsack, Rachel had a terrific explanation of why public investments into broadband are essential:

The idea here behind spreading broadband to America`s rural areas is the same one behind the rural electrification program from the 1930s. The idea that even if it`s not profitable for private industry to extend the basics of modern economic life, electric light then and the Internet now, even if it`s never going to be profitable to some private company to extend those things to every last home down every long dirt road in America, it is worth it to America, worth it to us, that everybody has access to those things. That we`re all plugged in.

It is the right kind of jobs investment for the country to put people to work laying those lines and connecting those Americans to the grid and it is the right things to do for the rural parts of the country so that people and businesses in every part of the country can compete economically.

Extremely glad to see Rachel devoting time to this important issue.

Visit msnbc.com for...

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Posted August 25, 2011 by christopher

Santa Monica's approach to building community owned broadband that puts the community first has been wildly successful. They have not focused on providing residential connections, and likely will not in the future, focusing instead on meeting their municipal needs and businesses to spur economic development.

They can deliver up to 10Gbps to businesses that need it and they have connectivity throughout the City for whatever projects they choose to pursue. This includes free Wi-Fi in parks, controlling traffic signaling (prioritizing mass transit, for instance), and smart parking applications. On top of all that, their investments have saved more than a million dollars that would have been wasted on slower, less reliable connections provided by leased lines.

In the matter of controlling traffic signals, Santa Monica wants all intersections with fiber-optics.

Arizona Avenue, the Mid-City area and the city's office district will all be getting makeovers if the City Council approves two contracts that will connect 40 signalized intersections to City Hall's centralized traffic control system.

The work represents the fourth phase in a five-phase effort to connect all of Santa Monica's intersections using fiber optic cables. Some signals will need to be fully replaced, while others can get by on smaller upgrades, according to the staff report.

Don't miss this hour long interview between Craig Settles and Jory Wolf, the brains behind Santa Monica's success.

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Posted July 26, 2011 by christopher

Tullahoma's LightTUBe FTTH network, owned and operated by the Tullahoma Utilities Board, has attracted J2 Software Solutions to locate its headquarters in town [PDF]. Its CEO, Jerry Wright offers some background:

Wright said J2, which specializes in providing high-tech software to law enforcement agencies to handle dispatching, records management and other related functions, needed to have the highest speed, most dependable Internet service available.

He said TUB, through its LightTUBe broadband communications service, provides exactly what his company needs to thrive and expand.

"What LightTUBe has is top of the line," Wright said, adding that normal cable TV service and higher speed digital subscriber line, commonly referred to as DSL, were not adequate to meet the company’s volume and demand.

Sounds like confirmation of the story we we just wrote about AT&T's CEO admitting DSL is obsolete.

Congratulations to Tullahoma for making smart investments in its own future.

Posted July 18, 2011 by christopher

We watch in frustration as the federal government, dressed as Charlie Brown asks AT&T, wearing Lucy's blue dress and smiling brightly, if she really will hold the football properly this time. "Oh yes, Charlie, this time I really will create all those jobs if you let us buy T-Mobile," says AT&T Lucy.

Over at HuffPo, Art Brodsky recently revisited AT&T's promises in California to create jobs, lower broadband prices, and heal the infirm if the state would just deregulate the cable video market -- which it did, 4 years ago. California upheld its end of the bargain -- wanna guess if AT&T did? Hint: Charlie Brown ended up on his back then too.

The answer comes from James Weitkamp (via Art's HuffPo post), from the Communications Workers of America, a union that all too often acts in the interests of big companies like AT&T and CenturyLink rather than workers:

"AT&T and Verizon have slashed the frontline workforce, and there simply are not enough technicians available to restore service in a timely manner, nor enough customer service representatives to take customers' calls. Let me share some statistics. Since 2004, AT&T reduced its California landline frontline workforce by 40%, from about 29,900 workers to fewer than 18,000 today. The company will tell you that they need fewer wireline employees because customers have cut the cord going wireless or switched to another provider, but over this same period, AT&T access line loss has been just under nine percent nationally. I would be shocked if line loss in California corresponds to the 40 percent reduction in frontline employees.


"Similarly, since 2006 Verizon California cut its frontline landline workforce by one-third, from more than 7,000 in 2005 to about 4,700 today. I venture that Verizon has not lost one third of its land lines in the state."

Note that AT&T, Verizon, and other massive incumbents like Comcast have been wildly profitable over this term.

The same trend holds in cellular wireless - as noted by the Wall Street Journal:

The U.S. wireless industry is booming as more consumers and businesses snap up smartphones, tablet computers and billions of wireless applications. But for...

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Posted June 4, 2011 by christopher

Remapping Debate, an organization dedicated to "the full spectrum of domestic policy issues," has turned its focus on community broadband networks in an article called "Wave of the Future?" The article notes the tremendous success of Bristol, Virginia, in creating jobs. Most are well aware of the 700 jobs created by CGI and Northrup Grumman due to the network, but there are other success stories too:

Fiber has helped Bristol and the surrounding counties hold onto existing businesses as well as attract new ones. Alpha Natural Resources, a coal giant, pointed to the BVU service as a key factor in its 2009 decision to keep the company’s corporate headquarters in Bristol after a merger with Foundation Coal, a rival based in the more cosmopolitan Baltimore-Washington corridor. BVU’s fast service (up to 30 megabits for downloads and 10 megabits for uploads) will allow Alpha management to maintain close electronic watch over a combined network of mines in West Virginia, Kentucky, Pennsylvania and Wyoming.

The article goes on to discuss Chattanooga. Once again, we knew that its muni fiber network had already led to many more jobs from Amazon and Homeserve, but we learn more about exactly how the network has improved health care:

Chattanooga’s fiber network has been a foundation for high-tech business startups. One new company, Specialty Networks, allows doctors spread across many area hospitals and offices to get quick image analysis from radiologists specializing in the cancers of various regions of the body. In the past, according to Dr. Jim Busch, the radiologist behind the venture, eye, nose, and throat doctors would get initial readings from radiologists who did not necessary understand the particular subtleties of cancers affecting those areas. Now a single head-and-neck expert reads the images for just about all of greater Chattanooga’s ENT doctors. “The relatively inexpensive nature of all this bandwidth has been great for patient care,” Dr. Busch told Remapping Debate.

The rest of the article discusses other benefits of community networks and policy options for moving forward. Recommended reading.

Posted May 30, 2011 by christopher

nDanville, the open access fiber-optic network operated by the City's public power company, has been quietly succeeding in southern Virginia. This network has already connected half of the communities health care facilities, allowing them to improve medical care with 100Mbps and gigabit circuits at affordable prices.

The medical network connects Danville Regional Medical Center and about half of the area’s medical facilities to nDanville, a fiber optic network established by the city. The high performance fiber allows real-time access to patient medical records and allows for the exchange of CT and MRI scans instantly.

Another article notes praise for the city's efforts:

"It enables us to better serve our patients by having their information available across multiple sites," Deaton [CEO of Danville Regional Medical Center] said. "We will continue to support the city's efforts in linking our medical community together, and I want to commend the city for the success of this network and making healthcare a top priority."

The Intelligent Community Forum brought the above success to my attention in awarding Danville a recipient of its 2011 Founders Awards. (Chattanooga is in the running for Intelligent Community of year and really, how could it possibly lose?) But ICF details more impressive details from nDanville:

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On average, fiber connections for these facilities provide twice the bandwidth of the previous connection but at a 30% savings. More than 90% of the medical facilities (approximately 125 locations) are to be connected by December  2011, said Jason Grey, the Broadband Network Manager of Danville Utilities, who led Danville’s charge to become a recognized intelligent community by ICF.

ICF further noted that the nDanville Network provides a crucial link between the Danville Diagnostic and Imaging Center and the Danville Regional Hospital. This high capacity connection allows the two facilities to exchange CT and MRI scans...

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Posted April 16, 2011 by christopher

Chattanooga's impressive publicly owned FTTH network can take credit for yet more jobs being created in the community, following an announcement last month from HomeServe, a call center that wants to keep jobs in the United States.

"When a HomeServe customer is in need of assistance, we want them to have the convenience and reassurance of being assisted by a representative based here in the United States," Jonathan King, chief executive for HomeServe, said in a statement. "We decided on Chattanooga because of the availability of high-quality employees combined with the robust telecommunications and data infrastructure available in the area."

Posted March 29, 2011 by christopher

Minnesota Public Radio, as part of its Ground Level Broadband Coverage has profiled WindomNet with a piece called "Who should build the next generation of high-speed networks?"

Dan Olsen, who runs the municipal broadband service in Windom, was just about to leave work for the night when he got a call. The muckety-mucks at Fortune Transportation, a trucking company on the outskirts of town, were considering shuttering their office and leaving the area.

"They said, Dan, you need to get your butt out here now," Olsen recalls. "I got there and they said, 'You need to build fiber out here. What would it take for you to do it?'"

Fortune, which employs 47 people in the town of 4,600, two and a half hours southwest of the Twin Cities, relies on plenty of high-tech gadgetry. Broadband Internet access figures into how the company bids for jobs, communicates with road-bound truckers, controls the temperatures in its refrigerated trucks and remotely views its office in Roswell, New Mexico. Fortune even uses the Internet to monitor where and to what extent drivers fill their gas tanks in order to save money.

Yet, when it was time to upgrade company systems three years ago, Fortune's private provider couldn't offer sufficient speeds.

That's where Windomnet came in. Though Fortune was a mile outside the municipal provider's service area, "We jumped through the hoops and made it happen," recalls Olsen. "The council said, "Do it and we'll figure out how to pay for it.' We got a plow and a local crew. We had it built in 30 days."

I have thought about this story frequently when I hear claims that publicly owned networks are failures. For years, lobbyists for cable and phone companies have told everyone in the state what a failure WindomNet has been - they crow about debt service exceeding revenue while ignoring the fact that all networks -- public and private -- take many years of losses before they break even because nearly all the costs of the network are paid upfront.

Toward the end of the article (which should be read in its entirely rather than in the snippets I repost here), Dan puts the matter in context:

Dan Olsen retorts that Windomnet was never designed to make money; one...

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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 November 11, 2010 by christopher

The Media and Democracy Coalition has released a short paper detailing the many ways in which cable and phone companies have failed America. These companies use their market power to gouge residents and businesses, putting a drag on our economy. Meanwhile, the biggest ones are massively profitable and refuse to invest in the networks necessary to keep America competitive with peer nations.

We recently wrote about how privately owned networks tend to consolidate and reduce competition rather than reducing prices. The lesson is as clear as it has always been throughout human history: allowing a select few to control essential infrastructure is a recipe for economic calamity.

From the paper:

It’s good for our economy when companies make money and hire workers. But while small businesses continue to struggle in this economy, the cable and phone companies achieved extremely healthy profit margins. If the Great Recession didn’t stop these ISPs from making big profits, how could they be hurt by sensible consumer protections to keep the net operating just like it always has?

Well, seeing as how seat belts destroyed the automobile industry... and then air bags also destroyed the automobile industry... and CAFE standards destroyed the automobile industry.... wait -- all of these predictions were false. Perhaps we should not base important policy decisions upon the dire predictions of self-interested parties who are obligated to put self-interest ahead of the public interest.

I was saddened to see that the paper suggest "we need" the private companies to build these networks. Point of fact, not only do we not "need" them to do it, we "need" to wake up to the fact that even when they do the best they can, it is second best to networks built by those who put the public interest first. Compare the networks of communities like Salisbury, NC; Monticello, MN; Lafayette, LA; and Chattanooga, TN, to the joke AT&T calls U-Verse and the stronger offers of FiOS. The private sector cannot be trusted to build the infrastructure we need.

Addendum: I should note that while infrastructure must be managed in the public interest, I do believe the private sector should have a strong role as service providers operating on top of...

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