In January 2016, Holland, Michigan, made commencing fiber-optic Internet access to residential neighborhoods its number one goal for fiscal year 2017. They’re a little behind schedule, but the town is now moving forward by expanding a pilot project in order to serve a larger downtown area.

It's Really Happening

The Holland Board of Public Works (BPW) held an informational meeting on March 13th to answer questions from the community and share plans for the potential expansion. About a year ago, we reported on the results of a study commissioned by the city in which, based on a take rate of about 40 percent, 1 Gigabit per second (1,000 Mbps) connectivity would cost residents about $80 per month. Small businesses would pay approximately $85 per month and larger commercial subscriber rates would run around $220 per month. The update on the plan confirms those figures, noting that the four businesses that tested the pilot services had positive experiences. As a result, BPW feels it’s time to expand to more of downtown.

"If it goes really well we hope to be able to expand the service out as far into the community as we can," said Pete Hoffswell, broadband services manager at BPW.

The expansion is planned for construction in June and July, with service testing in August. Actual delivery would be in September, BPW estimates.

BPW will use a boring technique to place conduit and fiber below ground so there will be minimal disruption. No streets will be closed. Next, BPW will get construction bids, evaluate them, and present them to the City Council for approval.

Not An Impulse Decision

Holland has had dark fiber in place for decades for the municipal electric operations. Later BPW extended it to schools and businesses that needed high capacity data services. After years of incremental expansions, the network is now more than 150 fiber miles throughout the city.

They tried to lure Google to the community in 2010, but when the tech company went elsewhere, city leaders created a 2011 strategic plan which confirmed the desire to improve connectivity. The plan came with a $58 million recommendation to...

As federal agencies examine the potential consequences if the AT&T - Time Warner merger is allowed to proceed, how we analyze antitrust also needs to be reevaluated. 

A new report from the Roosevelt Institute takes a closer look at how antitrust enforcement philosophy has changed, how that change has enabled our current state telecommunications in which a few large anticompetitive players control the market. The authors offer recommendations and cautionary predictions that may arise if we continue without reassessing how we scrutinize these large scale mergers.

Authors Marshall Steinbaum and Andrew Hwang complement each other with economic and legal approaches. Steinbaum is Senior Economist and Fellow at the Roosevelt Institute and has also written for Democracy, Boston Review, The American Prospect, and The New Republic. He earned his Ph.D. from the University of Chicago Economics Department in 2014. Hwang is a legal fellow at the Roosevelt Institute and has also been an associate at Simpson Thacher & Bartlett LLP, working on transactions involving securities issuance, mergers and acquisitions, and corporate lending. He received his J.D. from the Duke University School of Law in 2014 and B.A. in economics and political science from the University of Chicago in 2011.

The report notes how scrutiny of mergers has come to depend on the perceived harm the results will have on consumers, but such a narrow focus results in harming competition.

Instead, regulators should adopt a more holistic view of market power, specifically incorporating analysis of upstream impact of anticompetitive behaviors, especially those enabled by mergers. This would entail closer scrutiny of vertical mergers, positive price discrimination, and non-price-based schemes to profit excessively by withholding access to consumers.

Several specific recommendations caught our attention as particularly relevant approaches, including:

Regulators should utilize Section 2 of the Sherman Act to a greater degree by taking enforcement actions against antitrust violators, up to and including undoing previous mergers that have proven anti-competitive after the fact.

After all, we’ve learned that the Comcast NBCUniversal Merger completed in 2013 has resulted in anticompetitive behavior by Comcast, regardless of its promises to treat content providers other than its own...

If you’re like much of the country, you may be stuck in a bad romance with your Internet Service Provider. In the spirit of the holiday, the writers at MuniNetworks.org reimagined three of the biggest providers as their sweeties and, you guessed it, things weren’t all wine and roses.

Comcast - “The Creep”

by Kate

All across the U.S., Internet subscribers are settling for Comcast when there’s no one else to date. After the excitement of a new relationship in the form of low price introductory rates disappears, you are left with nothing more than slow, inconsistent speeds and jacked up service fees. What had been a steady relationship quickly hits rocks when Comcast becomes lazy, realizing that you will never break up with them because there’s no one else in town to date. When you finally can’t stand Comcast’s high costs, added fees, data caps, and inconsistent speeds, you decide to take a break but just like a bad date, Comcast refuses to take “no” for an answer. What can you do when your only other choice is DSL? You’re trapped by “The Creep.”

AT&T - “Darth Vader”

by Hannah

AT&T is the empire of telecom.  The empire will control everything and everyone through the power of the Death Star or, in AT&T’s case, through lobbyists and high prices. AT&T’s willing to put in a minimal level of support in rural areas: just like the empire maintains a small outpost on Tatooine but doesn’t care that the rural planet is full of smugglers and run by a mob of Hutts. Personified, the company is most certainly Darth Vader: manipulative, secretive, and powerful. He will only help you if there’s something in it for him. He doesn’t actually care about your feelings, only that he maintains power over you (it's just like paying AT&T not to spy on you). Don’t date Darth Vader – you can’t trust him.

CenturyLink - “The Old Geezer”

by Lisa

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Tennessee Governor Bill Haslam doesn’t want the public’s money to pay for publicly owned Internet infrastructure. He has no problem, however, writing a $45 million check backed by taxpayers and payable to the likes of AT&T in Tennessee.

"A Little Song, A Little Dance, A Little Seltzer Down Your Pants"

On Wednesday, Haslam introduced the “Tennessee Broadband Accessibility Act,” another state sponsored handout to the national Internet Service Providers who have made countless broken promises to expand to rural areas. The bill contains some provisions dressed up to look like measures that make big strides for the state, and will be helpful, but it's not ground breaking.

The bill lifts existing state restrictions on electric cooperatives that may wish to offer retail Internet access to members. The state restrictions on co-ops are dubious anyway and could be challenged under federal law. For the state’s electric cooperatives that reach all over the rural areas, the bill is welcome, but communities near Chattanooga’s EPB gets the short end of the stick.

EPB, Chattanooga’s Municipal Electric Utility, has advocated for several years to expand beyond their service territory. Neighboring communities, such as Bradley and Polk Counties, need better connectivity because the national providers don’t consider their regions a good investment. Nevertheless, state law prohibits EPB from expanding to them and this legislation won't change that.

"Don't Confuse The Conversation"

State Sen. Janice Bowling, R-Tullahoma, where the local municipal network has jump started economic development and improved the quality of life, pointed out the problem in Haslam’s shell game legislation:

Bowling said the measure only goes halfway in removing regulatory limits that she said now limit fiber optic service in much of Tennessee "and keeps too many rural citizens from participating in the 21st century digital economy."

"I'm certainly glad that electric co-ops will be able to retail fiber services under this measure and I think that will be significant," she...