Google Fiber has finally announced its plans for the future after weeks of dramatic speculation that it will lay off half its workforce and give up on fiber-optics entirely. Google has now confirmed our expectations: they are pausing new Google Fiber cities, continuing to expand within those where they have a presence, and focusing on approaches that will offer a better return on investment in the short term.

Nothing Worth Doing Is Easy

In short, Google has found it more difficult than they anticipated to deploy rapidly and at low cost. And in discussions with various people, we think it can be summed up in this way: building fiber-optic networks is challenging and incumbents have an arsenal of dirty tricks to make it even more so, especially by slowing down access to poles.

That said, Google is not abandoning its efforts to drive better Internet access across the country. In the short term, people living in modern apartment buildings and condos will be the greatest beneficiary as Google takes the Webpass model and expands it to more cities. But those that hoped (or feared) Google would rapidly build Fiber-to-the-Home (FTTH) across the country are likely disappointed (or slightly relieved, if they happen to be big incumbent providers). 

This is a good moment to talk about the lessons learned from Google Fiber and what we think communities should be thinking about. 

Let's start by noting something we have often said: Google Fiber and its larger "access" approach have been incredibly beneficial for everyone except the big monopolists. Its investments led to far more media coverage of Internet access issues and made local leaders better understand what would be possible after we dismantle the cable broadband monopoly. 

Benoit Felton, a sharp international telecommunications analyst wrote a very good summary of Google Fiber titled Salvaging Google Fiber's Achievements. Some of my thoughts below overlap his - but his piece touches on matters I won’t address, so please check out his analysis.

I want to focus on a few key points.

This is Not a Surprise...

North Carolina's digital divide between urban and rural communities is increasing dangerously in a time when high quality Internet access is more important than ever. Rural and urban areas of North Carolina are essentially living in different realities, based on the tides of private network investment where rural communities are severely disadvantaged. The state has relied too much on the telecom giants like AT&T and CenturyLink that have little interest in rural regions.

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The state perversely discourages investment from local governments and cooperatives. For instance, electric co-ops face barriers in seeking federal financing for fiber optic projects. State law is literally requiring the city of Wilson to disconnect its customers in the town of Pinetops, leaving them without basic broadband access. This decision in particular literally took the high-speed, affordable Internet access out of the hands of North Carolina's rural citizens.

The lengths to which North Carolina has gone to limit Internet access to their citizens is truly staggering. Both a 1999 law limiting electric cooperatives' access to capital for telecommunications and a 2011 law limiting local governments' ability to build Internet networks greatly undermine the ability of North Carolinians to increase competition to the powerful cable and DSL incumbent providers. 

In the face of this reality, the Governor McCrory's Broadband Infrastructure Office recommended a "solution" that boils down to relying on cable and telephone monopolies' benevolence. What this entire situation comes down to is a fundamental disadvantage for North Carolina's rural residents because their state will not allow them to solve their own problems locally even when the private sector abandons them.

"It's not as if these communities have a choice as to what they're able to do to improve their Internet service," says report co-author Christopher Mitchell, director of the Community Broadband Networks initiative at the Institute for Local Self-Reliance. "There's a demonstrated need for high-quality Internet service in rural North Carolina, but the state literally refuses to let people help themselves."

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They're at it again. Recently, they have been called out for taking advantage of E-rate; now they are taking advantage of their own lack of infrastructure investment to worm their way out of obligations to serve low-income residents. Fortunately, a nonprofit group caught up with AT&T's shenanigans and held their feet to the fire.

"Nah, We Don't Have To Do That..."

As part of FCC-mandated conditions under which AT&T was allowed to acquire DirecTV in 2015, the telecommunications conglomerate created the "Access from AT&T" program, offering discount Internet access to low-income households. The program consists of tiered services - download speeds of 10 Megabits per second (Mbps) for $10 per month, 5 Mbps for $10 per month, and 3 Mbps for $5 per month.

The company is required to enroll households in the fastest speeds available, but a significant amount of low-income families don't qualify because the fastest speed AT&T offered to their home is 1.5 Mbps download. The problem, created by AT&T's own lack of infrastructure investment in certain neighborhoods, allowed AT&T to dodge their responsibility under the terms of the DirecTV acquisition by simply denying enrollment to households with speeds less than 3 Mbps. Trouble is, some one noticed.

NDIA In Cleveland, Detroit

The National Digital Inclusion Alliance (NDIA) realized the scope of the problem when they attempted to help families in low-income neighborhoods in Detroit and Cleveland sign up for Access from AT&T. In addition to discovering that residents could only obtain 1.5 Mbps download speeds, NDIA found that AT&T denied these households enrollment because their speeds were too slow. The only other option for ineligible households was AT&T’s normal rate for 1.5 Mbps service, which is six times the cost of the Access program.

Loopholes: All Lawyered Up And Nowhere To Go

By diving through a cavernous loophole, AT&T cleverly manipulated the terms of the merger order and single handedly squelched the intended purpose of the program. According to the directive, AT&T “shall offer wireline Broadband Internet...

On September 6th, the Nashville Metro Council approved a proposed One Touch Make Ready (OTMR) ordinance by a wide margin of 32-7 on a roll call vote (computers were down). This was the second vote to advance the ordinance, designed to streamline deployment of fiber-optic networks in a city looking for better connectivity. Elected officials responded to Nashville residents who flooded their council members’ offices with emails.

The Nashville Metro Council will take up the ordinance one last time; passage could speed up competition in the country music capital. Google Fiber has been pushing for a OTMR, while incumbents AT&T and Comcast look for a non-legislative solution to the problem of the poles while protecting their positions as dominant Internet Service Players (ISPs).

Caught Between A Rock And A Hard Stick

The city of Nashville sits on limestone, a rock that cannot support the trenching and underground work of fiber deployment. The only other option is to use the utility poles. Eighty percent of the poles are owned by the public utility Nashville Electric Service (NES), but incumbent provider AT&T owns the other 20 percent. Google Fiber says it needs to attach fiber to 88,000 poles in Nashville to build its network and about half of those (44,000) need to be prepared to host their wires. 

Pole attachments are highly regulated, but there are still gray areas. Susan Crawford provides an overview of the policies and regulations on BackChannel; she accurately describes how poles can be weapons that guard monopoly position. Currently, each company that has equipment on the poles must send out a separate crew to move only their own equipment. This process can drag on for months. The OTMR ordinance is a deceptively simple solution to this delay. 

Deceptively Simple, But Regulated

At its simplest, OTMR means that one crew moves everything; the ordinance under debate in Nashville is actually more complicated than that. (Read...