Tag: "economics"

Posted September 18, 2017 by Staff

This is the transcript for episode 270 of the Community Broadband Bits podcast. Professor Barbara Cherry goes into detail on the history of common carriage and telecommunications law. Listen to this episode here.

Barbara Cherry: It's been a mess. And part of the problem is restoring a more accurate understanding of our history.

Lisa Gonzalez: This is Episode 270 of the Community Broadband Bits podcast from the Institute for Local Self-Reliance. I'm Lisa Gonzalez this week Christopher talks with attorney and legal scholar Barb Cherry about common carriage. We often talk about common carriage as it relates to telecommunications. And this week Christopher and Barb get into the policy. But most of us aren't aware of the legal history behind common carriage. Barb describes how its origins relate to the way it's applied today and how we need to consider the past as we move toward the future. Now here's Christopher and Barb Cherry.

Christopher Mitchell: Welcome to another edition of the Community Broadband Bits podcast. I'm Chris Mitchell from the Institute for Local Self-Reliance up in Minneapolis. Today I'm speaking with Barb Cherry a lawyer and a Ph.D. in communications who worked for the FCC for five years has 15 years in industry but is now a professor at the media school at Indiana University. Welcome to the show.

Barbara Cherry: Thank you, Chris.

Christopher Mitchell: Barb, one of the things I've warned you about. I'll tell the audience that you have an incredible amount of knowledge and you're very passionate. And so if this seems like it's getting a little bit too you know, friendly I might poke you a little bit to get some of that passion up on the surface.

Barbara Cherry: No problem.

Christopher Mitchell: Let's talk about common carriage which is something that I've never heard anyone explain as well as you have and and maybe you can just start with giving us a sense of the historical origins of common carriage in general.

Barbara Cherry: Yes common carriage is a special legal status that evolved over centuries literally to reflect that certain kinds of businesses engage in certain kinds of services... Read more

Posted September 12, 2017 by christopher

The modern fight over network neutrality isn't a few years old. It is well over 1,000 years old across a variety of infrastructures and is totally wrapped up in a legal concept known as common carriage that has governed many kinds of "carriers" over the years. Few, if any, are as conversant in this subject as Barbara Cherry - a lawyer and PH.D in communications. She has worked in industry for 15 years, at the Federal Communications Commission (FCC) for five years, and is currently a professor in the Media School at Indiana University.

One of the key points of our conversation is regarding the problems with media shortening the Network Neutrality policy fights as turning the Internet into a "public utility."  Barbara helps us to understand how common carriage is distinct from public utility regulation and why common carriage regulation is necessary even in markets that may have adequate competition and choices.

We also talk about the history of common carriage and the importance of what might seem like outdated law from the days of the telegraph. 

Read the transcript of the show here.

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

This show is 30 minutes long and can be played on this page or via iTunes or the tool of your choice using this feed.

You can download this mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to Arne Huseby for the music. The song is Warm Duck Shuffle and is licensed under a Creative Commons Attribution (3.0) license.

Posted June 27, 2017 by christopher

Just what does it take to have a market? It may be more complicated than you think -- and in large part because of the things most of us don't notice that governments do. We discuss this and the role of broadband planners with Alex Marshall on Community Broadband Bits podcast 260. 

Alex is the author of The Surprising Design of Market Economies, a columnist for Governing magazine, and Senior Fellow at the Regional Plan Association in New York City. In the course of our conversation, he notes the Portland Speech from President Franklin D. Roosevelt. 

One of the highlights of our conversation is comparing roads to broadband in terms of benefits, how they are funded, and the danger from over zealous tolling. We strongly recommend Alex's writing as it has been quite influential in our thinking about municipal infrastructure over the years.

Read the transcript of the show.

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

This show is 25 minutes long and can be played on this page or via iTunes or the tool of your choice using this feed.

You can download this mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to Arne Huseby for the music. The song is Warm Duck Shuffle and is licensed under a Creative Commons Attribution (3.0) license.

Posted June 13, 2017 by christopher

As the telecommunications and broadband market has become more and more consolidated, it has drawn more attention, leading to more attention from people that actually care about functioning markets. Enter the Roosevelt Institute and their report, Crossed Lines: Why the AT&T-Time Warner Merger Demands a New Approach to Antitrust.

Roosevelt Institute Senior Economist and Fellow Marshall Steinbaum and Program Director Rakeen Mabud join us to talk about the failing broadband market and what can be done at both the federal and local levels.

Marshall focuses more on the federal level and antitrust while Rakeen discusses local solutions that local governments can implement. We talk about the FCC, the FTC, the history and future of competition in telecommunications, and how local governments can make sure low-income Internet access projects stay funded in the long term.

Read the transcript of the show.

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

This show is 31 minutes long and can be played on this page or via iTunes or the tool of your choice using this feed.

You can download this mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to Arne Huseby for the music. The song is Warm Duck Shuffle and is licensed under a Creative Commons Attribution (3.0) license.

Posted April 25, 2017 by christopher

The larger focus of our work in the Community Broadband Networks Initiative is to ensure communities have the networks they need. Our guest for Community Broadband Bits episode 250 is an expert in how markets break and the policies that make them work. 

Gary Reback is a well known Silicon Valley lawyer and Of Counsel at Carr Ferrell LLP. He also wrote an excellent book, Free the Market: Why Only Government Can Keep the Marketplace Competitive that I fully recommend. Reback has had a front-row seat to the failings of government policy that has allowed a few technology firms to garner so much market power today.

We talk broadly about markets and monopoly rather than focusing on broadband and telecommunications. This is a good introductory conversation for people unfamiliar with the real threat and harms of monopoly. 

A related conversation is my interview with Barry Lynn in episode 83.

Read the transcript of the show here.

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

This show is 25 minutes long and can be played on this page or via iTunes or the tool of your choice using this feed.

You can download this mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to Arne Huseby for the music. The song is Warm Duck Shuffle and is licensed under a Creative Commons Attribution (3.0) license.

Posted February 22, 2017 by christopher

One of the most recurring complaints about cable television is the bundles - people resent having to pay for channels that they do not watch. Especially when those cable prices go up consistently. The cable companies tend to absorb most of the blame and anger for this model, but they aren't entirely responsible.

To explain how the cable industry works, Public Knowledge Senior Counsel John Bergmayer joins us for Episode 241 of the Community Broadband Bits podcast. We talk about overlapping monopolies, market power, and how the cable companies themselves are somewhat imprisoned by content owners. 

As fits with our focus, we also talk specifically about how smaller firms (which includes all municipal networks) are particularly harmed by the status quo and even more harmed by the ongoing consolidation of the largest cable companies becuase they then have far greater negotiating power. 

Read the transcript of the show here.

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

This show is 30 minutes long and can be played on this page or via iTunes or via the tool of your choice using this feed.

You can download this mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to Admiral Bob for the music. The song is Turbo Tornado (c) copyright 2016 Licensed under a Creative Commons Attribution (3.0) license. Ft: Blue Wave Theory.

Posted February 14, 2017 by christopher

The most rural area of Missouri is getting a Fiber-to-the-Home network from the United Electric Cooperative, which has created United Fiber and is expanding across its footprint and to adjacent areas that want better Internet access. Chief Development Officer Darren Farnan joins us to explain why his co-op has taken these steps.

We discuss how they are rolling it out - focusing on areas that need the service while respecting the telephone cooperatives that are within their electric footprint. The project has benefited from a broadband stimulus award and also incorporates fixed wireless technology in some areas.

We discuss some of the economics behind the project and are sure to clarify that though the utility has needed some capital subisides to build the network, it does not need any operating subsidies to continue - it runs under its own revenue. And we talk about the demand for better, faster connections - it is much higher than most realize.

Read the transcript of the show here.

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

This show is 30 minutes long and can be played on this page or via iTunes or via the tool of your choice using this feed.

You can download this mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to Admiral Bob for the music. The song is Turbo Tornado (c) copyright 2016 Licensed under a Creative Commons Attribution (3.0) license. Ft: Blue Wave Theory.

Posted August 10, 2016 by christopher

As the next President considers how to improve rural Internet access, the administration will have to decide where to focus policy. Some at NTIA - the National Telecommunications Information Administration, a part of the federal Department of Commerce - have argued for more middle mile investment. NTIA oversaw major investments in middle mile networks after the stimulus package passed in 2009.

To discuss the relevance of middle mile investment against last mile investment, we brought Fletcher Kittredge back, the CEO of GWI in Maine. Fletcher has extensive experience with both middle mile and last mile investments.

We talk about whether more middle mile will actual incent last mile investment and, more importantly, how to build middle mile correctly to get the best bang for the buck. Along those lines, we talk about avoiding cherry-picking problems and one of my favorites, how to ensure that rural investment does not inadvertently promote sprawl.

Read the transcript of this episode here.

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

This show is 30 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

You can download this mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to Roller Genoa for the music, licensed using Creative Commons. The song is "Safe and Warm in Hunter's Arms."

Posted May 25, 2016 by christopher

In our experience, just about every community considering building a community network considers open access. They want to enable new choices for services and often would prefer the local government avoid directly competing with existing service providers, for a variety of reasons. However, we are only tracking 30 open access networks on our just-released Open Access resource page.

Many of the communities that start off enthusiastic about open access ultimately decide to have a single service provider (themselves or a contractor) to have more certainty over the revenues needed to pay operating expenses and debt. We believe this will change as the technology matures and more communities embrace software-defined networks (SDN) -- but before tackling that topic, we think it is important to discuss the meaning of open access.

On a regular basis, I get an email from one deep-thinking person or another that says, "That network isn't really open access." They almost always make good points. The problem is that different people embrace open access for different reasons - they often have different expectations of outcomes. Understanding that is key to evaluating open access.

How Many ISPs?

One of the key questions centers on how many providers a household is likely to be able to choose from. Various factors, including the network architecture and economics of becoming a service provider, will influence this outcome.

Some communities simply seek to avoid a monopoly network - they are focused on the idea of potential competition. For instance, we believe Huntsville's model and agreement with Google can be considered open access because any party could lease fiber from the utility to compete with Google. However, we believe the costs of doing so by using that network architecture make robust competition unlikely.

If Google is a strong competitor in Huntsville, they will likely not face significant competition from other ISPs on the utility fiber though AT&T and Comcast will still use their networks to compete. But in the event that Google is not a strong competitor, the door will be open to other ISPs to give people a better choice. It is extremely unlikely that this arrangement would give residents many choices for Internet access... Read more

Posted March 26, 2015 by lgonzalez

Hudson is moving ahead with plans to develop a publicly owned fiber network, reports the Hub Times. The City Council recently approved a contract with a consultant to develop a conceptual design, implement the plan, and recruit service providers interested in operating over an open access network.

In January, the town of about 23,000 conducted a residential and business survey to determine the overall state of broadband in the community. At a February meeting, the Council reviewed the survey results. Almost 1,000 residents and 133 businesses answered the survey which revealed that Internet services were lacking in coverage, speed, performance, and reliability. From a February Hub Times article:

Hudson's small and medium business community reported many issues with their current broadband services, citing poor reliability and performance as negatively affecting their ability to do business in the city. Many businesses wanted to upgrade to a better service but found that they could not afford to do so.

Consultants recommend building off the community's fiber I-Net to improve connectivity for local businesses. According to the city's Broadband Needs Assessment and Business Plan, Hudson will also consider offering services as a retail provider if no ISPs express interest in using an open access city infrastructure.

If the city  decides to pursue the open access model, consultants estimate Hudson will need to spend approximately $4.9 million to four commercial areas of town. With the added expenses and responsibilities as a retail provider, the costs would likely run closer to $6.5 million. The plan suggests deploying to businesses first and later add a residential buildout.

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