Back in June, some sixty House Republicans led by Tennessee’s Marsha Blackburn sent an open letter to FCC Chairman Tom Wheeler expressing their “deep concern” with his support for community networks. They took issue with comments he made at a House Energy and Commerce hearing in May, indicating his willingness to preempt incumbent-sponsored anticompetitive state laws that handicap or outright ban municipal networks. 

In the the views of Rep. Blackburn and her allies, this “sets a dangerous precedent and violates state sovereignty in a manner that warrants deeper examination.” They demanded answers from Chairman Wheeler on a set of eight questions so leading that they would make even the most partisan pollster blush. They featured many of the same “states’ rights,” “unelected federal bureaucrat,” and “unconstitutional authority” talking points used later in the floor debate over Blackburn’s anti-muni amendment, softened up and rephrased just a bit for polite company. 

In late July, Chairman Wheeler offered a formal written response. He opened with a diplomatically worded overview of the U.S. broadband sector, before launching into the heart of the matter:

“...Many states have enacted laws that place a range of restrictions on communities’ ability to make their own decisions about their own future. There is reason to believe that these laws have the effect of limiting competition in those areas, contrary to almost two decades of bipartisan federal communications policy that is focused on encouraging competition. I respect the important role of state governments in our federal system, but I also know that state laws which directly conflict with critical federal laws and policy may be subject to preemption in appropriate circumstances.”

While the legal debate is all about the extent of federal authority, Chairman Wheeler correctly identifies the real policy issue: "communities' ability to make their own...

Section 702 of the 1996 Telecommunications Act requires the FCC to report annually on whether "advanced telecommunications capability is being deployed to all Americans in a reasonable and timely fashion." The FCC kicked off its tenth such report on Tuesday by releasing a "Notice of Inquiry," (NOI) in effect asking individuals and groups around the country to offer relevant data and comments. 

This process amounts to a kind of crowdsourced "State of the Union" on broadband issues. In addition to determining how many people in what areas have broadband access, this NOI also asks the critical question of how exactly the FCC should define broadband. The current definition of 4mbps download capacity and 1mbps upload may have been sufficient in the past, but isn't adequate for even recreational household use by many Americans today, let alone the demands of running a business and conducting commerce online.

This NOI also asks some arcane but important questions about other aspects of broadband definitions, including latency (the speed of data moving within a network, a different measure than bandwidth) and the widespread use of data caps and other policies in the telecom industry. 

Obviously the answers to all these questions have significant implications for municipal networks. Inadequate or overly-loose definitions of broadband allow incumbents to claim that they are providing excellent service to just about everyone in a given area, when that is often far from the truth. Many restrictive state laws limiting municipal networks, as well as federal grant programs that may support such networks, are based on whether an area is defined as already served or underserved, which may be dependent on FCC benchmarks. As is often the case in regulatory issues, the devil is in the details.  

FCC Chairman Tom Wheeler introduced the NOI with the following statement:

Congress has instructed us that all Americans should have access to robust broadband services, no matter where they live. Because consumers demand increasing levels of bandwidth capacity to support the applications they want to use online, we are asking if it is time to update the benchmark broadband speed. And as more people adopt faster broadband speeds, we are asking if all consumers, even in the most rural...

The Institute for Local Self-Reliance recently submitted comments to the FCC as part of its Protecting and Promoting the Open Internet proceeding. ILSR focused on the issue of paid prioritization, reclassification, and regulation of content. We also provided some examples of municipal networks that provide fast, reliable, affordable service and do not rely on paid prioritization to serve customers.

From the ILSR comments:

The FCC should be extremely wary of any arguments that claim paid prioritization or other discriminatory practices are necessary to increase investment in next-generation networks. These networks are already being built and paying for themselves in both public and private approaches (as well as partnerships mixing the two). ILSR sees no reason to believe any additional revenues gained by discriminatory pricing would be reinvested in improving DSL and cable networks as the largest firms operating these networks generally face little competitive pressure to upgrade. That is the problem, not a lack of revenue in the current model.

Our reading of the various court decisions suggest the only option for the FCC to preserve the open Internet and prevent big cable and telephone companies from tinkering with the established principle of non-discriminatory carriage is reclassification and urge the FCC to take this step. However, we also urge the FCC to take actions to prevent any regulation of content. The FCC should concern itself with the transmission of information, regardless of what that information is, consistent with long-held Internet principles.

The Open Internet proceeding has inspired an estimated 1 million+ comments. The outpouring strained the FCC's system and as a result, the FCC extended the comment period to July 18th.

The full document is available below for download and available on the FCC's electronic filing system.

Since January, when the DC Circuit Court of Appeals suggested the FCC has the authority to preempt state anti-muni laws, local communities have publicly supported the notion. Chattanooga's Electric Power Board (EPB) will join those communities when it petitions the FCC to preempt similar laws in Tennessee, reports The Center for Public Integrity.

Danna Bailey, vice president of corporate communication at EPB recently told The Center:

“We continue to receive requests for broadband service from nearby communities to serve them,” Bailey said. “We believe cities and counties should have the right to choose the infrastructure they need to support their economies.”

Chattanooga, one of the publicly owned networks that have inspired FCC Chairman Tom Wheeler, has proved itself as a strong economic development tool. According to the article:

A day after his meeting with Berke, Wheeler wrote in his blog, “I believe that it is in the best interests of consumers and competition that the FCC exercises its power to pre-empt state laws that ban or restrict competition from community broadband. Given the opportunity, we will do so.”

A number of other communities with municipal networks, or in the process of deploying them, have passed Resolutions that support the FCC:

• Westminster, Maryland - plans for an open access fiber network are moving forward
• Chanute, Kansas - the network has grown incrementally since 1994; the community is now planning for...