California Legislators have turned on their constituents living in rural areas who want to participate in the 21st century online economy. What began as a move in the right direction - allocating substantial resources to funding high-speed Internet infrastructure - has become another opportunity to protect big incumbents. It’s twice as nice for Frontier and AT&T, because they will be paid big bucks to meet a low Internet access bar.

Discretionary Fund

Democrat Eduardo Garcia, the main author on Assembly Bill 1665, represents the Coachella Valley, a rural area in the southern area of the state near Palm Springs. Democrat Jim Wood coauthored with eight others. Wood represents coastal areas in the northern part of the state, which was passed during the eleventh hour of the 2017 legislative session. Wood’s district and region has obtained several grants from the California Advanced Services Fund (CASF) that have helped to improve local connectivity. 

The CASF is much like CAF; both programs are funded through a surcharge on revenue collected by telecommunications carriers from subscribers. Since 2007, when California authorized the CASF, the legislature has amended the rules and requirements several times. Early on, CASF awards went primarily to smaller, local companies because large corporations such as AT&T and Frontier did not pursue the grants. Now that those behemoths have their eyes on CASF grants, they’ve found a way to push out the companies who need the funds and have shown that they want to provide better services to rural Californians.

AB 1665 allocates $300 million to Internet infrastructure investment and an additional $30 million to adoption and related local programs. Policy experts have criticized the legislation on several fronts. Consultant Steve Blum told CVIndependent:

The incumbents (large corporate ISPs) including AT&T, Frontier and the California Cable and Telecommunications Association jumped in and said, ‘We want the bill to be X, Y and Z.’ … Assemblymember Eduardo Garcia took it and started adding language that reflected the desires of these cable and telephone company incumbents.

“The bill went through three revisions, and each time,...

This is the transcript for episode 267 of the Community Broadband Bits podcast. Michael Anderson from Spiral Internet joins the show to explain how this small ISP is building next-generation networks in rural California. Listen to this episode here.

Michael Anderson: If there's an existing incumbent nearby, and they claim that area, then they can say, "No, you can't fund that, we'll challenge it," and then they don't really have to give you a timeframe as to when they are going to provide that service, so it is a real show stopper.

Lisa Gonzalez: This is episode 267 of the Community Broadband Bits podcast, from the Institute for Local Self-Reliance. I'm Lisa Gonzalez. This week, Michael Anderson from Spiral Internet, and Christopher, talk about the California company, their history, and their approach. They also discuss what it's like to work in an environment where national providers do all they can to pretend competition from ISPs like Spiral. Some of those efforts are playing out right now, as the state legislature reviews funding that has traditionally been used to expand Internet access in rural areas. Before we start the interview, we want to remind you that this commercial-free conversation is not free to produce. Please take a moment to contribute at ILSR.org. If you've already contributed, thanks. Now here's Christopher and Michael Anderson from Spiral Internet.

Christopher Mitchell: Welcome to another edition of the Community Broadband Bits podcast. I'm Chris Mitchell with the Institute for Local Self-Reliance up here in Minneapolis. Today I'm talking with Michael Anderson, the Chief Information Officer for Spiral Internet, all the way out there in California. Welcome to the show.

Michael Anderson: Thank you, Chris.

Christopher Mitchell: So, you are in California, but in a place called Nevada City, I believe, which confuses me every single time I talk to you or one of your folks from Spiral Internet. Can you tell us a little more about your company?

Michael Anderson: Whenever you hear Nevada City, California, people still think that we are in the state of Nevada, which is not the case. Actually, Nevada City had the name "...

It’s been a long road for Pinetops, North Carolina, as they’ve sought better connectivity in their rural community. After dramatic ups and downs, the community seems to have finally found a tepid resolution. Greenlight can, for now, continue to serve Pinetops.

With Conditions

On June 28th, the General Assembly passed HB 396, which allows Wilson’s municipal network, Greenlight, to continue to provide gigabit connectivity to the town and to Vick Family Farms but establishes conditions. If or when another provider brings Fiber-to-the-Home (FTTH) service to Pinetops, Wilson has 30 days to end service as customers transition to the new provider. Until a different provider comes to Pinetops, Greenlight will continue to offer its gigabit connectivity to the approximately 600 households and premises in the community of about 1,300 people.

In addition to premises in the town of Pinetops, Greenlight is serving Vick Family Farm, a local potato manufacturer. When the business obtained access to high-quality Internet access, they were able to expand their business internationally; they invested in a high tech distribution facility. The facility requires the kind of capacity they can only get from Greenlight.

Community leaders in Pinetops are relieved they don’t have to give up fiber connectivity, but they’re happy with the service they get with Greenlight and would rather stick with the muni.

“Although not the solution we expected, we are pleased this bill allows us to continue to leverage Greenlight’s next generation infrastructure as we focus on growing our community,” said [Town Commissioner Suzanne] Coker-Craig. “Hopefully, no other provider will exercise the option to build redundant infrastructure that our community neither wants nor needs. Pinetops has made it clear that we want the quality and speed of service that only Greenlight can provide.”

Read the text of the bill here.

What A Long, Strange Trip It’s Been...

TechDirt - May 4, 2017

Maine The Latest State To Try And Let Giant Broadband Providers Write Shitty, Protectionist State Law

Written by Karl Bode

One of (several) reasons why American broadband is so uncompetitive is the fact that we continue to let giant broadband mono/duopolies quite literally write awful state telecom law. As we've long noted, more than twenty different states have passed laws making it difficult to impossible for towns and cities to improve their local broadband networks -- even in instances when the entrenched duopoly refuses to. Many of these laws even ban towns and cities from entering into public/private partnerships with the likes of Google Fiber. It's pure protectionism.

Maine is the 49th ranked state in broadband speed and coverage -- in large part due to rural markets. Despite countless years of subsidies, broadband providers consistently refuse to seriously upgrade these areas at any scale due to costs. And yet they refuse to let the towns do it themselves, either. State Representative Nate Wadsworth has introduced HP1040, aka "An Act To Encourage Broadband Development through Private Investment." Except like so many of these bills, the proposed law's name is a stark 180 from what the legislative measure actually does.

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And laws banning municipal broadband -- and especially public/private partnerships -- accomplish the exact opposite of that. And while large ISPs (and their ocean of paid think tankers, economists, and other doller-per-holler professionals) have tried to make this a partisan issue -- the vast majority of municipal networks are built in Conservative areas with broad, bipartisan support. That's because there's one thing we can all agree on: nobody likes the local cable and broadband monopoly.

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