Tag: "competition"

Posted August 5, 2014 by christopher

Given the exciting development of the FCC opening comment on petitions from Wilson, NC and Chattanooga, TN to restore local authority to their states, Lisa and I decided to take over this week's podcast of Community Broadband Bits.

We talk about the petitions, some background, and interview Will Aycock from Wilson's Greenlight Gigabit Network and Danna Bailey from Chattanooga's EPB Fiber network.

We finish with some instructions on how you can comment on the record. The Coalition for Local Internet Choice also has commenting instructions and some sample comments.

Read a transcript of this show, episode 110, courtesy of Jeff Hoel.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address.

This show is 22 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

Listen to previous episodes here. You can can download this Mp3 file directly from here.

Find more episodes in our podcast index.

Thanks to Waylon Thornton for the music, licensed using Creative Commons. The song is "Bronco Romp."

Posted July 29, 2014 by christopher

If you have doubts that we can or will connect rural America with high quality Internet connections, listen to our show today. Alyssa Clemsen-Roberts, the Industry Affairs Manager at the Utilities Telecom Council, joins me to talk about how utilities are investing in the Internet connections that their communities need.

Many of these utilities are providing great connections, meaning that some of the folks living in rural America have better -- faster and more affordable -- Internet access than residents of San Francisco and New York City.

We discuss the demand for better Internet access and the incredible take rates resulting from investment in some of the communities that rural electric cooperatives are serving.

UTC has a been a strong ally of our efforts to prevent states from revoking local authority to build community networks. Within UTC, the Rural Broadband Council is an independent operating unit.

Read a transcript of this show, courtesy of Jeff Hoel.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address.

This show is 17 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

Listen to previous episodes here. You can can download this Mp3 file directly from here.

Find more episodes in our podcast index.

Thanks to Waylon Thornton for the music, licensed using Creative Commons. The song is "Bronco Romp."

Posted July 28, 2014 by lgonzalez

The Lake County fiber network is now serving a limited number of customers in northern Minnesota. According to the Lake County News Chronicle, the network's triple-play services are lit and bringing better connectivity to Silver Bay and Two Harbors.

About 100 customers in Silver Bay take service via the network; beta testers in Two Harbors are helping Lake Connections, the entity managing the network, straighten out any kinks in Phase One. Phase Two, which is more than 60% complete, will bring service to Duluth Township, Knife River, Silver Creek Townships, and Beaver Bay Township. Phase Two is scheduled for completion this summer; Lake Connections anticipates network completion in the fall of 2015.

The Lake County project has been plagued with problems, including delays cause by incumbents. Mediacom filed complaints with the Inspector General based on unsound allegations. While the cable company was not confident enough to sue, its accusations wasted time and money for Lake County. Frontier asserted ownership of a significant number of Two Harbors utility poles, even though the City has maintained them, and the two are still involved in negotiations over ownership and fiber placement on the poles. The Minnesota Cable Companies Association (MCCA) delayed the project further by submitting a massive data request.

The FTTH project is one of the largest stimulus projects, totaling approximately $70 million in grants, loans, and local matching funds. The project will cover almost 3,000 square miles when complete, connect almost 100 community anchor institutions, and provide services to over 1,000 businesses.

As we have noted before, the project was sorely needed. On more than one occasion, a single fiber cut to the area created Internet black outs to...

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Posted July 24, 2014 by christopher

Chattanooga and Wilson, North Carolina, are two of the most successful municipal fiber networks by a variety of metrics, including jobs created, aggregate community savings, and more. This has led to significant demand from surrounding communities for Wilson and Chattanooga to expand. We have profiled both of them in case studies: Wilson and Chattanooga.

Expecting this outcome, the big cable and telephone companies had pressured the states to limit where municipal networks can offer service, unlike the private companies that can invest anywhere. Wilson cannot expand beyond county limits. Chattanooga already serves its entire electrical footprint, which stretches into northern Georgia and includes a few other towns but cannot serve anyone beyond that.

FCC Chairman Wheeler has been quite clear that he intends to remove barriers to competition that limit local authority to build community networks.

Today, Wilson and North Carolina have filed petitions with the FCC to remove restrictions on their ability to expand and offer services to nearby communities. These barriers were created after major lobbying campaigns by Comcast, AT&T, and Time Warner Cable, one of which we chronicled in The Empire Lobbies Back. We have also explained how the FCC can take this action and interviewed Harold Feld on the matter.

Read press statements from Chattanooga EPB and Wilson, North Carolina [PDF below]. Also, take a look at Wilson's Full Petition and Exhibits and...

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Posted July 23, 2014 by tanderson

This is the final installment of a three part series, in which we examine the current state of the UTOPIA network, how it got there, and the choices it faces going forward. Part I can be read here and Part II here

In Part I of this story, we laid out the difficult situation the open access UTOPIA network finds itself in and how it got there. Part II gave the broad outlines of Macquarie’s preliminary proposal for a public-private partnership to complete and operate the network. The numbers we deal with here are mostly from the Milestone One report, and assumed the participation of all 11 cities. It should be noted that since five of eleven UTOPIA cities opted out of proceeding to Milestone Two negotiations, the scope and scale of the project is subject to change. The basic structure of the potential deal is mostly set, however, allowing us to draw some reasonable conclusions about whether or not this deal is good for the citizens of the UTOPIA cities.

Let’s first turn to why Macquarie wants to make this investment.  This would be the firm’s first large scale broadband network investment in the U.S., allowing it to get a foothold in a massive market that has a relatively underdeveloped fiber infrastructure. To offset network build and operation costs, it will also be guaranteed the revenue from the monthly utility fee, which my very rough calculations put between $18 and $20 million for the six cities opting in to Milestone Two (or between $30 and $33 million per year for all 11 cities) depending on whether the final fee ends up closer to $18 or $20 per month.

Jesse Harris of FreeUTOPIA puts Macquarie’s base rate of return between 3.7% and 4.7%, which is slim enough that they should have...

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Posted July 14, 2014 by tanderson

This is the first of a three part series, in which we examine the current state of the UTOPIA network, how it got there, and the choices it faces going forward.

At the end of a month of public meetings, hearings, and city council votes, just over half of the cities that make up UTOPIA have chosen to take the next step in their negotiations with the Macquarie Group. The massive Australian investment bank has put forward an offer to become a partner in the troubled network in exchange for a $300 million capital infusion to finish the long-stalled FTTH buildout.

Of the 11 member cities that have debt obligations for the network, six (comprising about 60% of all 163,000 addresses in the UTOPIA area) have voted to proceed to “Milestone 2,” which means digging into details and starting serious negotiations on the terms of a potential public-private partnership. Macquarie outlined their opening proposal in their Milestone 1 report in April.

Macquarie has about $145 billion in assets globally, and is no stranger to large scale infrastructure projects. Their Infrastructure and Real Assets division has stakes in Mexican real estate, Taiwanese broadband networks, Kenyan wind power, and a New Jersey toll bridge, to name just a few. For their UTOPIA investment, they would be working with Alcatel Lucent and Fujitsu, highly capable international IT companies. So there’s some serious corporate firepower across the negotiating table from the UTOPIA cities - and in this case, that’s not actually a bad thing.

Jesse Harris of FreeUTOPIA has an excellent overview of the whole messy history of UTOPIA and the limited options the network’s member cities now face. While the network offers true competition, low prices, and gigabit speeds through an open access FTTH network, UTOPIA has faced a slew of setbacks over the years, from incumbent lawsuits and astroturf activism to mismanagement, poor expansion planning, loan disputes, and restrictive state laws. As a...

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Posted July 11, 2014 by lgonzalez

The City of Santa Fe is taking first steps to improve the community's Internet choice, quality, and availability. Recently, the City announced that it has chosen a partner for a middle mile investment and will move forward with the $1 million fiber deployment project.

CenturyLink and Comcast serve Santa Fe, home to approximately 70,000 people. Residents and businesses both complain about slow speeds and relatively high costs. Residents pay $50 per month for average speeds of 5 Mbps while nearby Albuquerque pays the same price for 10 Mbps, according to the Santa Fe New Mexican.

CenturyLink owns the sole fiber hut connecting the community with the Internet. The company also owns the line bringing access to the web to downtown, giving it control over data transmittal in the city. A city press release, reprinted at SantaFe.com in May 2013 described the problem:

Every home and most businesses already have two physical routes to the Internet: A telephone line and a television cable...But in spite of this abundance of pathways, there is a crucial missing link in the infrastructure, an enduring legacy of the former telephone monopoly. This missing link spans from the central telephone office to a location about two miles away where several fiber optic cables emerge from the ground after traversing many miles of road, railroad and countryside from remote junctions across the state. Absent this two-mile link, local providers have only one way to connect to the outside world, and must pay a steep toll on the data transmitted over it. 

The City recently announced that it would work with local ISP Cyber Mesa to build an independent line from downtown to CenturyLink's fiber hut. The City hopes the line will introduce much needed competition, encouraging better service and prices.

According to the plan, Cyber Mesa will run the City's fiber service for four years; after that other bidders can apply to manage the network. Three other companies bid on the project, including CenturyLink who told the City "not to waste money on the project." CenturyLink opposes the plan, of course,...

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Posted July 9, 2014 by tanderson

In the first part of this series, we discussed how spectrum could be better managed to allow far greater communications capacity, but only if the FCC abandoned its traditional approach of auctioning spectrum to carriers for monopolistic use. In this part, we’ll discuss how devices could take advantage of a new approach to spectrum management and how it might help to circumvent gatekeepers, whether corporate or government.

With increased unlicensed use of the spectrum, an astonishing range of possibilities emerges. Mobile devices could communicate with each other directly, without reference to a central node controlled by a telecom company or monitored by a government. Access points could be strung together wirelessly to create decentralized ad hoc networks, with each device forwarding data from every other, creating a seamless network throughout an entire neighborhood or city. Commotion Wireless is already attempting this on a small scale with just the existing spectrum.

Such networks already exist in a few places, but access to more unlicensed spectrum and permission to use stronger signals would allow them to grow, potentially creating a more decentralized and democratic way to share information and access the internet; an end-run around data caps, future “fast lane” policies, and other drawbacks of relying on one or two telecom oligopolists as a network owner and gatekeeper.

Another exciting possibility for unlicensed spectrum use can be found in emerging Ultra-Wide Band technologies. These allow devices to use a large swath of spectrum at very low power to send information in bits and pieces over short distances, somewhat similar to bitTorrents, and could allow for nearly instantaneous exchange of gigabits of data. All of this is dependent, however, on access to spectrum with the right characteristics, such as low frequency TV bands that can penetrate physical obstacles like walls or trees especially well.

These technologies have political ramifications as well. Rather than having to make monthly payments to a national provider as you do with your cell phone, we would have different models to choose from. Some would be just a matter of buying the right device,...

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Posted July 2, 2014 by tanderson

This is the first in two-part series on spectrum basics and how we could better manage the spectrum to encourage innovation and prevent either large corporations or government from interfering with our right to communicate. Part 2 is available here.

We often think of all our wireless communications as traveling separate on paths: television, radio, Wi-Fi, cell phone calls, etc. In fact, these signals are all part of the same continuous electromagnetic spectrum. Different parts of the spectrum have different properties, to be sure - you can see visible light, but not radio waves. But these differences are more a question of degree than a fundamental difference in makeup. 

As radio, TV, and other technologies were developed and popularized throughout the 20th century, interference became a major concern. Any two signals using the same band of the spectrum in the same broadcast range would prevent both from being received, which you have likely experienced on your car radio when driving between stations on close frequencies – news and music vying with each other, both alternating with static. 

To mitigate the problem, the federal government did what any Econ 101 textbook says you should when you have a “tragedy of the commons” situation in which more people using a resource degrades it for everyone: they assigned property rights. This is why radio stations tend not to interfere with each other now.

The Federal Communications Commission granted exclusive licenses to the spectrum in slices known as bands to radio, TV, and eventually telecom companies, ensuring that they were the only ones with the legal right to broadcast on a given frequency range within a certain geographic area. Large bands were reserved for military use as well.

Originally, these licenses came free of charge, on the condition that broadcasters meet certain public interest requirements. Beginning in 1993, the government began to run an auction process, allowing companies to bid on spectrum licenses. That practice continues today whenever any space on the spectrum is freed up. (For a more complete explanation of the evolution of licensing see this excellent Benton foundation blog post.)

Although there have been several redistributions over the decades, the basic architecture remains....

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Posted June 27, 2014 by christopher

Citing the importance of Internet access to economic development, a number of Congressional Democrats are calling on FCC Chairman Wheeler to make good on his intention to remove barriers to community owned networks. Senator Edward Markey is the lead from the Senate and Representative Doyle in the House. And this Minnesotan takes pride in seeing both Senators Franken and Klobuchar signed on.

The letter [pdf] makes a strong case for local decision-making:

[L]ocal communities should have the opportunity to decide for themselves how to invest in their own infrastructure, including the options of working with willing incumbent carriers, creating incentives for private sector development, entering into creative public-private partnerships, or even building their own networks, if necessary or appropriate.

...

Communities are often best suited to decide for themselves if they want to invest in their own infrastructure and to choose the approach that will work best for them. In fact, it was the intent behind the Telecommunications Act of 1996 to eliminate barriers to entry into the broadband market and promote competition in order to stimulate more innovation and consumer choice. We urge you and your colleagues to utilize the full arsenal of tools Congress has enacted to promote competitive broadband service to ensure America’s communities obtain a 21st century infrastructure to succeed in today’s fiercely competitive global economy.

Signing the letter included Senators Edward Markey, Al Franken, Amy Klobuchar, Richard Blumenthal, and Cory Booker as well as Representatives Mike Doyle, Henry Waxman, and Anna Eshoo. We thank each of them for standing up for local authority.

Yesterday, we gave a brief update of what has happened thus far on this issue. This is a very important moment, as so many communities have recognized that at the very minimum, they need a plan for getting next-generation networks.

Cable and DSL simply aren't good enough to compete in the modern economy but the big carriers have enough clout in state capitals to push laws limiting competition and enough power in DC to feel confident in their anti-consumer mergers. Given this dynamic,...

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