Update: HB 5670 was removed from the agenda prior to the committee hearing.

Representative Michele Hoitenga from Michigan is at it again. Last year as Chair of the House Communications and Technology Committee, she attempted to pass a bill to discourage her state’s self-reliant municipalities from improving local connectivity. Deja vu as her committee’s agenda for tomorrow, December 6th, picks up HB 5670, a bill sponsored by a different lawmakers and deceivingly titled the “Broadband Investment Act.”

View the language of the bill.

Money is Good, Who Gets it Matters

The bill, sponsored by Mary Whiteford (R - Laketown Township) establishes a fund that will provide grants for broadband infrastructure deployment; the fund will be created by the state treasury. The bill doesn’t specify a dollar amount, which likely would vary from year to year. Recognizing that the state needs to make a financial investment in rural Internet infrastructure deployment is certainly a step forward, but the details in HB 5670 will end up doing more harm than good for people living beyond urban centers.

Municipalities and other government entities are specifically denied eligibility for grants. Not only does the restriction prevent local communities the ability to offer Internet access to the general public, but without an equal opportunity at state funding for infrastructure, municipalities and counties can’t pursue a public-private model. In short, by locking out local governments from state funding, the bill is harming both local citizens and the local ISPs that tend to offer services via publicly owned infrastructure.

10/1 Isn’t Broadband!

Michigan’s State Legislators are considering a bill that uses the term “broadband” to describe minimum service as 10 Megabits per second (Mbps) download and 1 Mbps upload. The FCC increased the standard to 25 Mbps/3 Mbps back in 2015 and it remains today. HB 5670 will siphon money from the state treasury to Frontier, AT&T, and any other telco that refuses to invest in anything better than DSL in rural Michigan. Fail. Needs improvement.

The vague language of the bill would also thrust satellite and mobile Internet access into the “served” parameters...

Shortly after Republican FCC Commissioners repealed federal network neutrality protections late in 2017, state lawmakers began introducing legislation to protect their constituents. California’s AB 1999, introduced as one possible antidote to the FCC failure in judgment, passed the General Assembly on August 29th and is on its way to Governor Jerry Brown.

Read the final version of the bill and the Legislative Counsel Digest here.

Let the People Serve the People

As local communities have investigated ways to protect themselves from throttling, paid prioritization, and other activities no longer banned, they’ve looked at investing in publicly owned infrastructure. Rural communities where national Internet service providers are less motivated to deploy have always struggled to attract investment from the same large companies known to violate network neutrality tenets. Assembly Member Ed Chau’s AB 1999 addresses rural communities’ need for better connectivity, solutions that can preserve network neutrality, and challenges in funding broadband infrastructure.

California’s community service districts (CSDs) are independent local governments created by folks in unincorporated areas. CDSs provide services that would otherwise be provided by a municipality. Residents usually join together to form a CSD and do so to establish services such as water and wastewater management, garbage collection, fire protection, or similar services. A CSD also has the ability to create an enhanced infrastructure financing district (EIFD) in order to finance the development of a broadband network.

The EIFD statute granting the authority allows communities, including CSDs, to join together regional projects for a range of financing purposes. Tax Increment Financing (TIF) and various bonding mechanisms are a few examples.

The law currently on the books, which AB 1999 will change, requires CSDs to first determine that no private entity or person is willing to offer broadband in their sector before they are allowed to invest to do so. If they manage to get past the requirement but an entity or person enters the picture and is willing to provide those services, the...

Lobbyists from the cable and telecom industry succeeded in using the legislature to firm up their rural Massachusetts monopolies this session. Communities that rely on state funds for local publicly owned broadband infrastructure projects now face restrictions on the reach of their high-speed networks.

A Long Trip Through the Legislature

Governor Charlie Baker’s economic development bill includes a provision designating funding for the Massachusetts Broadband Institute (MBI) and the Executive Office of Housing & Economic Development for broadband deployment. The agencies distribute the funds to various communities where residents and businesses plan to improve their local connectivity. Approximately 20 towns have decided to invest in publicly owned Internet infrastructure, including Alford, Otis, and Mount Washington, to name a few. Others are taking offers from Comcast and Charter, which will build out networks to more premises with state funding. 

Many of the rural communities who are going with the publicly owned option want to connect households and establishments within the town proper, but also what they describe as “edge” properties — those beyond town limits but have no other choice for broadband. Edge properties in western Massachusetts typically don’t have access to anything better than expensive and unreliable satellite or dial-up. Often, there are only a few “edge” properties in each community, but neighbors don’t want to leave anyone behind. 

Baker’s bill began its trip through the state legislature in March and, as is the case with typical large bills, went through numerous hearings along the way. Over the course of the legislative process, a question arose as to whether or not those rural towns wanting to serve edge properties would be able to use state funding to reach edge properties. In the original version of the bill, language specifically allowed municipalities the right to cross municipal borders to serve edge properties, but when the telecom industry opposed the language, it was removed in the House. The action left an ambiguous gap that Gail...

In response to the FCC’s decision to end federal network neutrality protections, California and other states have introduced bills to fill the gap left by the Commission. Local communities who had flirted with the idea of publicly owned Internet infrastructure in the past have now taken a second and more serious look to counteract the FCC’s harmful policy shift. Assembly Member Ed Chau’s AB 1999, making its way through the legislative process, is opening possibilities for local communities to invest in their own Internet infrastructure. Chau recognizes that publicly owned networks are an option for more than network neutrality protections, especially in rural communities.

Attitude Adjustment

Our Christopher Mitchell travelled to California in May to testify about the bill as it worked its way through the committee process. AB 1999 could indicate that big telephone and cable companies now have less influence in state Capitols around the U.S. than in past years. We recently wrote about a New Hampshire bill that gives us similar hope — a piece of legislation signed by the Governor there that removed restrictions on local investment in broadband networks.

Like New Hampshire's SB 170, AB 1999 allows communities where big national providers don’t want to invest have more control over how they improve local connectivity. If passed, the bill will give California's community service districts the ability to develop public broadband networks and offer services. The language of the bill also requires that any networks developed by community service districts adhere to network neutrality rules.

Rural Communities Serving Themselves

Community service districts (CSD) are independent local governments created to provide services in unincorporated areas of a county. CSDs are...