Tag: "competition"

Posted June 18, 2020 by christopher

As states are considering whether and how to use federal CARES Act funding to improve Internet access, Idaho is poised to enact counter-productive limits on who can use that money by excluding community-owned solutions.

Though many states have been under pressure from big monopoly providers to only fund for-profit business models with broadband subsidies, those voices seem largely absent in this Idaho fight. Instead, it is some local monopoly providers that are threatened by a wave of new community networks that break the old monopoly approach to broadband networks.

Shock and Aww, Come on

As Idaho began considering how to spend its CARES Act funding, it took comments from a variety of stakeholders on how to achieve the state’s broadband goals. That process suggested an inclusive, open-ended approach that could help fund a variety of efforts that would improve resilience in a variety of ways — not just new connections to homes.But when the Department of Commerce stepped up to operationalize those goals into a matching grant program, something came off the rails. The state is taking comments this week from Idahoans on an approach it unveiled Tuesday evening. View the draft grant application and rules.

This draft grant application goes through contortions to give the CARES Act money to private companies. The only entities that can apply are governments, including sovereign tribes, local governments, or Idaho state agencies. But they are purely a pass-through — the money must go to a private company per rule IV of eligible projects: "Include only new broadband service, installed, owned, and operated by for-profit companies and not the applicant."

cooperatives fiberize rural america

Requiring the networks to be built and operated by for-profit entities runs counter to the suggestions of many stakeholders who discussed how this money should be spent. Non-profit business models run by cooperatives have been essential to expanding the highest-quality Internet access in Minnesota, the Dakotas, and Montana, as we have demonstrated in...

Read more
Posted May 28, 2020 by Katie Kienbaum

For the eighth episode of our special podcast series “Why NC Broadband Matters,” Christopher and his guests, Catharine Rice and Jack Cozort, continue their conversation on HB 129, North Carolina’s restrictive law that prevents local governments from investing in broadband infrastructure. The first half of their discussion focused on the years leading up to the passage of HB 129 in 2011. Today, Christopher, Catharine, and Jack talk about the bill itself, the influence of the telecom industry over the state legislature, and how HB 129 has impacted connectivity in North Carolina.

Catharine and Jack explain that local broadband authority became a partisan issue after the 2010 election, which flipped control of the North Carolina legislature to the Republicans. They share their experiences advocating against HB 129, explaining how legislators restricted public comments on the bill by limiting speaking time and rescheduling hearings and meetings. Jack tells Christopher that there were as many as 25 lobbyists representing telephone and cable companies at the state legislature pushing for HB 129. Catharine relates how corruption and a lack of transparency in government are the reasons why the telecom industry successfully got the bill passed.

Christopher and his guests also run through some of the provisions of HB 129, dissecting the telecom monopolies’ misleading arguments in favor of the bill.

This is the second half of a two part discussion. For part one, listen to...

Read more
Posted May 26, 2020 by Katie Kienbaum

We've written a lot about North Carolina's HB 129, the anti-competition law that prevents communities in the state from investing in broadband infrastructure. This week on the Community Broadband Bits podcast, Christopher dives deeper into the history of HB 129 with guests Catharine Rice, co-founder of NC Broadband Matters and project manager at the Coalition for Local Internet Choice, and Jack Cozort, a government relations consultant who has worked with the City of Wilson. In this first half of a two part conversation, Christopher and his guests discuss the years leading up to HB 129, which was passed in 2011, speaking frankly about the sway telecom lobbyists held over state legislators.

To start, Jack describes how Wilson decided to invest in its own broadband network Greenlight, after incumbent providers refused to partner with the city to upgrade the community. He goes on to explain how Wilson's decision led the regional broadband monopolies Time Warner Cable (now Charter Spectrum) and AT&T to advocate for legal restrictions on municipal broadband at the state legislature.

Catharine and Jack review some of the early bills ⁠— written by telecom companies and handed off to state legislators ⁠— that the monopoly providers introduced in an attempt to stop broadband competition. They share their involvement in those legislative fights and explain how difficult it was to counter the influence that the telecom industry had over politicians in both major parties. However, Catharine points out that there were also Democratic legislators during this time who defended local broadband authority and kept anti-...

Read more
Posted March 25, 2020 by Katie Kienbaum

In a recent article, “Tell The Story We Know: Broadband Competition is Too Limited,” Jonathan Sallet laid out the case for robust broadband competition as a necessary step in expanding high-quality connectivity nationwide. “Academic research tells us that more broadband competition matters: pushing rivals to up their game, saving money for consumers, increasing the quality of service,” explained Sallet, a current Benton Institute Senior Fellow and former General Counsel at the Federal Communications Commission.

The article, co-published by the Benton Institute for Broadband & Society and the Coalition for Local Internet Choice, identified greater broadband competition as one of the four “building blocks” needed to reach the goal of connecting all Americans to modern Internet access by 2030. Sallet has expanded on this goal in the report, Broadband for America’s Future: A Vision for the 2020s, which we covered last year. In addition to creating more Internet choice, the report cited the need for continued efforts to deploy broadband infrastructure, increase affordability and adoption, and connect community anchor institutions.

Benton 2020 ReportCommunities Crave Competition

It’s not a secret that greater broadband competition lowers prices and improves service quality. For example, the municipal fiber networks in Wilson, North Carolina, and Chattanooga, Tennessee, have kept incumbent providers’ rates low even as speeds increased. “By the FCC’s calculation, new competition saved Wilson’s approximately 50,000 residents more than $1 million per year,” Sallet noted in the article.

However, as he pointed out, other communities are much more likely to live under a broadband monopoly or duopoly — and to pay dearly for it. “We can expect people with only one choice to pay monopoly prices,” he wrote, “and people with only two choices to pay the higher...

Read more
Posted February 19, 2020 by lgonzalez

The merger between T-Mobile and Sprint is moving forward, notwithstanding legal opposition from multiple state attorneys general. In a recent article, Christopher Mitchell Director of the Institute for Local Self-Reliance's Community Broadband Networks Initiative, and Paul Goodman, Technology Equity Director from The Greenlining Institute, explained the tenuous reasoning behind the recent court decision and why they expect nothing good for subscribers and the state of competition as this deal comes to fruition.

We've shared the article in full here; you can also read it at The Greenlining Institute website.

EXPECT BROKEN PROMISES FROM T-MOBILE/SPRINT MERGER

By Christopher Mitchell and Paul Goodman

Earlier this week, a federal judge dismissed a lawsuit to stop the proposed merger between T-Mobile and Sprint. As a result, it’s highly likely that by the end of the year, Sprint will no longer exist, and that AT&T, Verizon, and T-Mobile will be the only major wireless providers in the United States. The judge’s decision is 170 pages long but boils down to this: The judge believes that even though T-Mobile will have the ability to increase prices, it won’t, because T-Mobile promised not to.

What, Exactly, has T-Mobile Promised?

The same things that communications providers have promised us for decades when drumming up support for a merger—lower prices, the creation of thousands of jobs, and new and exciting service offerings. As a result, the company argues, T-Mobile will have the size and resources to transform itself into a company like AT&T.

It’s that last sentence that’s particularly troubling. In 2018, AT&T purchased Time Warner Media, arguing that doing so would result in lower prices, the creation of thousands of jobs, and new and exciting product offerings. Which sounds fantastic, except for the fact that AT&T failed to deliver on those promises:

  • Instead of lowering prices, AT&T has increased its prices twice in the past year (it also gave some its customers a “bonus” of 15 GB of data a...
Read more
Posted December 24, 2019 by lgonzalez

It was about five years ago that we brought consultant Eric Lampland from Lookout Point Communications into the office for episode 80 of the Community Broadband Bits Podcast. We've completed more than 300 other episodes since then, but his insight still rings true on the many indirect cost savings of community broadband networks. As activity in our office slows down a little for the holiday season, we thought this would be a great time to revisit the conversation with Eric to remind listeners of some of the reasons why so many communities are interested in taking control of their connectivity options with public investment. Enjoy! 

Today, Lisa and I are joined by Eric Lampland for a discussion of how a community could justify building a community owned network from the indirect benefits that it would create, including the savings that each household realizes from competition driving down prices. Eric Lampland is the CEO and principal consultant of Lookout Point Communications, which helps local governments that are building a network or considering an investment.

Eric and I start by discussing how quickly the cost savings per household add up to equal more than the cost of building a network and we digress from there, covering other topics related to community owned networks. This includes how big cable companies would respond to this approach.

I have to note that most community networks have not been justified on this basis - the vast majority of community networks were designed to pay their full costs and they are doing so. Here, we discuss the general benefits of these networks that are often sidelined in the policy discussion and how they alone may justify a fiber network.

Toward the end, we begin discussing open access, something we will...

Read more
Posted December 16, 2019 by lgonzalez

Summit County Commissioner Elisabeth Lawrence and her husband who live in Breckenridge, Colorado, received a special holiday treat on December 9th — their house was connected to the new community network, Fiber9600. Crews braved the snow in the mountain community in order to complete the first home install.

Winter Waits for No Fiber

Two residential neighborhoods have been chosen for the first installs. ALLO Communications, the Internet access provider delivering service via the publicly owned fiber optic infrastructure, has stopped scheduling new installation appointments due to the inhospitable winter construction season.

According to ALLO senior operations manager Junius Businelle, however, crews will continue to complete scheduled installations in the first two designated neighborhoods with expected completion by February 1. Installation is free and takes about 90 minutes to two hours, unless a subscriber asks for TV installation, which requires up to an hour.

Lawrence and her spouse, Ryan Scholl, wanted to switch to ALLO because their previous Internet access was too expensive and unreliable. “We’re really looking forward to it because we have really inconsistent internet,” she told Summit Daily

From Open to ALLO

The city’s early plans were to develop an open access network in order to spur competition. The community, which welcomes large numbers of tourists every year, has experienced poor Internet access and high rates. City leaders, however, considered the challenges for ISPs operating on open access networks, such as getting a foothold in the community, and decided instead to work solely with ALLO for the first ten years.

With the option to renew the arrangement with ALLO for two more 10-year terms, Breckenridge will give the company a chance to establish themselves as a new entrant. The community will preserve an option to find another ISP in the future, if they’re not satisfied with ALLO after a reasonable period. 

As Commissioner Lawrence noted, subscribers will be able to sign up for better service than has...

Read more
Posted November 20, 2019 by lgonzalez

The Benton Institute for Broadband & Society has a reputation for looking at today’s reality with an eye toward tomorrow’s needs. In their report, Broadband for America’s Future: A Vision for the 2020s, Benton Senior Fellow Johnathan Sallet continues that perspective and offers insightful recommendations for a new National Broadband Agenda.

Download the report, Broadband for America’s Future: A Vision for the 2020s here.

Broadband for All Needs a New Approach

As access to high-quality connectivity becomes more critical each day, those without fast, affordable, reliable Internet access lose ground more quickly as time passes. In addition to the opportunities that come with broadband access, lack of adoption translates into lack of technical skills. Innovation isn’t slowing down for folks who don’t have broadband. 

As Sallet notes, access to and adoption of broadband improves our economy, strengthens communities, and empowers American workers. Obtaining that access and expanding that adoption, however, is proving more challenging than it should be.

In his report, the author reviews in detail the barriers that have prevented the U.S. from achieving its goal of ubiquitous access and adoption of broadband. He’s able to make recommendations based on four key policy areas:

Deployment of networks where adequate broadband does not exist;

Competition to increase choices and spur lower prices and better-quality service to their residents;

Affordability and Adoption for those who wish to have broadband in their homes but lack the means or the skills to acquire it; and

Community Anchor Institutions, such as schools and libraries, that increasingly serve their users wherever they are. 

"The Same Fabric of Truth-Seeking"

The 150-page report provides examples of successes, challenges, and many more detailed recommendations for a forward-thinking broadband policy agenda. As the author notes, extending high-performance broadband to all of...

Read more
Posted November 5, 2019 by lgonzalez

In late October 2019, Christopher travelled to the D.C. area to attend a Broadband Communities Economic Development event and while he was there, he sat down with Executive Director Adrianne Furniss and  Senior Fellow Jon Sallet from the Benton Institute for Broadband & Society. This week, we get to sit in on their conversations about the recent change at Benton from "foundation" to "institute" and about their recent report, Broadband for America's Future: A Vision for the 2020s.

First, Christopher speaks with Adrianne, who discusses the reasons why the organization has recently changed in order to stay current with their mission and with the times. She talks a little about the history of Benton and describes some of the reasons for developing the report.

Christopher spends most of the interview with Jon Sallet, who authored the report and who has a long career in antitrust and communications. After working in D.C. in telecommunications and Internet policy for several decades, he's seen the influence of the Internet grow. In this report, Jon analyzes stories and situations from around the U.S. and establishes a vision that will help us move forward to connect as many people as possible. He and Christopher discuss the four major factors that, if nurtured correctly, can help us integrate broadband into all sectors of society and maximize its usefulness. Christopher and Jon give special time to competition, an issue that arises repeatedly in the work at Benton and in our work at the Institute for Local Self-Reliance.

The interview will spark your interest in the report that...

Read more
Posted November 4, 2019 by lgonzalez

The people of our imaginary community "Villageville" have gathered outside the library, inside the library, and on Grumpy Gary's lawn to talk about the problem of poor local Internet access. Now, they're making it official and letting town leaders know that they want change. It's time for Episode 4 of "From Crops to Co-ops: Small Towns Want Better Internet!"

For the past three weeks, we've seen the good folks of this fictional community grapple with the difficulties that many rural towns face. When local connectivity doesn't keep up with the needs of the community, small towns can't be competitive. In Villageville, entrepreneurs, parents, and people who just want better Internet access have been researching why connectivity in their town is so poor and what are some possible solutions. Now they're ready to take their concerns to local elected officials.

The setting in this episode is a bustling town council meeting, in which locals are gathered to discuss what to do about poor Internet access in Villageville. The special speaker tonight is an attorney from the incumbent Internet access company. Citizens are ready to ask him why, for corn's sake, his employer still hasn't updated the services they provide.

During this episode, we learn more about the influence of large corporations and their lobbyists on competition, or the lack of it. The people of Villageville have noticed some patterns in the way state laws get passed and they're ready to talk about it at the meeting. By the end of the evening, folks are inspired to do more than complain.

In addition to the educational value from this short video, you'll enjoy the campy style of the Very Amateur Acting Troupe of the Community Broadband Networks Initiative and a special guest star from the Insitute for Local Self-Reliance. We've had fun writing, acting, and editing these videos and it shows. As with all "masterpieces," artists have come and gone from the Initiative team, leaving their imprints on "From Crops to Co-ops: Small Towns Want Better Internet!"

If you haven't seen episodes 1 - 3, check them out below, read the backstories or view them all on our Videos page.

...

Read more

Pages

Subscribe to competition