The Ohio State Senate is set to vote today on the state budget bill that includes an amendment which, if signed into law, would be a major setback for municipal broadband projects in the Buckeye State and protect the big incumbent Internet Service Providers from competition. 

If passed and signed into law it would make Ohio the first state in a decade to erect barriers to the establishment and expansion of municipal broadband networks. This is a surprising and disappointing move, especially for families who have spent the last year experiencing firsthand the poor Internet connectivity that comes with a broadband market dominated by monopoly providers with no incentive to put the interests of the public ahead of shareholder returns.

Erecting Barriers

When the Senate version of the state budget bill was unveiled earlier this week, it included an amendement with an array of conditions designed to prevent, stifle, and discourage cities from following through with any plan for a city-run network to meet the connectivity challenges of its residents.

The first is a provision that would only allow for municipal broadband networks to be built in “unserved” areas of the state, defined as geographic regions where residents do not have access to “broadband service capable of speeds of at least 25 Mbps downstream and at least 3 Mbps upstream.”

But a recent Ohio Broadband Strategy report released in 2019 under the direction of Ohio Lt. Gov. Jon Husted pegged the number of Ohioans without access to broadband at just around 1 million. According to the independent broadband tracking firm BroadbandNow, which ranks Ohio 24th in the nation on the broadband access scale, as of June 2021 there were 618,000 Ohio residents who did not have access to broadband with speeds of 25/3 or faster, which means that approximately 94 percent of Ohioans have access to wired broadband with speeds of 25/3 or faster. Restricting municipal networks to only those households with no service whatsoever would effectively preclude new networks in large parts of the state.

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Snapshot

Florida Legislature rewrites utility pole bill to include language backed by municipal electric utilities

North Carolina’s County Broadband Authority Act includes clause drawing criticism from electric co-ops

Oklahoma Governor signs mapping bill, vetoes measure adding Tribal representation to state broadband council

The State Scene

Florida

A Florida bill, which included provisions that would have forced Florida’s municipal electric utilities and their ratepayers to pay private Internet Service Providers’ utility pole make-ready costs, was significantly revised before passing the State House by a unanimous vote of 115-0 on April 28.

H.B. 1239, which no longer includes the make-ready costs provisions, initially read like a regulatory wishlist for incumbent cable monopolies until it was redrafted to become a legislative package aimed at improving broadband deployment across the state. The revised bill now heads to the State Gov. Ron DeSantis for approval.

The final version of the bill establishes additional duties for Florida’s Office of Broadband, creates a state broadband grant program, and requires the Office to conduct mapping of unserved and underserved areas of the state -- a significant deviation from the version that was first introduced in February.

The initial version was sponsored by the Florida Internet and Television Association, of which Charter and Comcast are members, capitol insiders noted. Proponents of the initial language argued that lowering the costs municipal electric utilities charge private ISPs for attaching to their utility poles was a necessary prerequisite to attract private investment in rural communities, and would have required electric utilities statewide to provide private ISPs with access to their poles at a capped rate. The stripped-out portion of the bill had also included tax exemptions on the majority of equipment private ISPs purchased.

On Monday, a new bill introduced into the Arkansas State Legislature has the potential, if passed, to remove almost all existing barriers to municipal broadband in the state. SB 74 was introduced in the 93rd General Assembly, Regular Session 2021 by State Senators Breanne Davis and Ricky Hill and their counterparts Representatives Brian Evans and Deann Vaught. 

The legislation would substantially amend the state’s Telecommunications Regulatory Reform Act of 2013, which in most scenarios bans government entities from building and owning networks and delivering services to residents in pursuit of promoting competition and bringing Internet access to unconnected parts of the state.

SB 74 keeps an existing ban on providing basic local exchange service in place (i.e. telephone), but otherwise allows municipalities to build, buy, and operate network infrastructure to deliver digital voice, broadband, data, and wireless telecommunications service to anyone in the state. 

Slow Progress in Recent Years

Currently in Arkansas, municipalities are allowed to build or partner with private companies to build broadband infrastructure, but only if they acquire a grant or loan to do so and only do so in unserved areas. When policy veterans last commented on these particulars of the legislative landscape in 2019, they were worried that such geographic and financing restrictions would effectively preclude new networks, and they were right. 

SB 74 eliminates these two restrictions, which represents a significant step forward. It also adds consolidated utility districts to the list of eligible entities, removes the requirement to file a public notice, and dramatically expands the emergency services clause to include healthcare services, education, and “other essential services.”

This is not the first time State Senator Davis and fellow lawmakers have attempted to fix the state’s broken regulatory environment. In early 2019, SB 150 sought to do many of the same things, but in the end was altered by amendments such that it only allowed government entities to deploy broadband in unserved areas and only if they received...

It’s mid-May and while some states’ legislatures are still in session, other’s have already debated new legislation, voted, and adopted new laws. This week, we talk with one Senator from Arkansas who, along with her colleagues, are interested in bringing better broadband to rural areas of her state, Breanne Davis.

During the 2019 session, she introduced SB 150, which was ultimately adopted. The bill makes slight changes in Arkansas law that prevent local communities from developing infrastructure to be used for broadband. She and Christopher discuss why she and her colleagues decided it was time to ask lawmakers for the change after years of depending on large ISPs who weren’t living up to promises to expand broadband in rural areas.

Christopher and Senator Davis discuss some of the details of the bill and address the amendments that changed a broad piece of legislation to a targeted law that allows local communities to apply for federal grant funding. She explains some of the reasons for the amendments and how those changes fit into the vision she and her colleagues in the legislature have for the future of Arkansas.

Read more about SB 150.

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

This show is 21 minutes long and can be played on this page or via iTunes or the tool of your choice using this feed. You can listen to the interview on this page or visit the Community Broadband Bits...