Tag: "competition"

Posted June 15, 2017 by Staff

This is the transcript for episode 258 of the Community Broadband Bits Podcast. Researchers from the Roosevelt Institute join our host Christopher Mitchell to discuss antitrust policy and Internet access. Listen to this episode here.

Marshall Steinbaum: This is us choosing a set of policies that is the worst of both worlds, that is both deregulatory and anti-competitive. Instead you can do both.

Lisa Gonzalez: This is episode 258 of the Community Broadband Bits Podcast from the Institute for Local Self-Reliance. I'm Lisa Gonzalez. This week Christopher visits with two other policy folk from the Roosevelt Institute, Marshall Steinbaum and Rakeen Mabud. Earlier this year the Roosevelt Institute released a report that examines how antitrust enforcement has changed and how those changes have impacted the telecommunications industry. Christopher, Marshall and Rakeen consider how that approach has affected people who may or may not subscribe to Internet access services. You can download the report and learn more about the organization at rooseveltinstitute.org. Now here are Christopher with Marshall Steinbaum and Rakeen Mabud.

Christopher Mitchell: Welcome to another edition of the Community Broadband Bits Podcast. I'm Chris Mitchell and today I'm speaking with two folks from the Roosevelt Institute. Marshall Steinbaum, the senior economist and fellow at the Roosevelt Institute. Welcome to the show.

Marshall Steinbaum: Thank you. It's great to be here.

Christopher Mitchell: We also have Rakeen Mabud, the program director at Roosevelt Institute. Welcome to the show.

Rakeen Mabud: Thanks, nice to be here.

Christopher Mitchell: I first was aware of you guys several years ago because of some work that Susan Crawford was doing with you I believe. I saw what really great work you were doing and then I read the Crossed Lines report, why the AT&T/Time Warner merger demands a new approach to antitrust. I thought it was terrific. I'm excited to talk about these kind of issues today but I thought that we'd start maybe by asking and reminding people that it's been 21 years since the Telecommunications Act of 1996 had promised...

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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 June 6, 2017 by christopher

One of the very many treats at Mountain Connect this year was a keynote from Chattanooga EPB's Director of Fiber Technology, Colman Keane. (Watch it here.) After discussing their remarkable successes, we snagged an interview with him (he was last on the show for episode 175).

We discuss whether or not Chattanooga is an appropriate role model for other cities considering a municipal fiber investment and the general viability of citywide approaches in the current market.

We also get an update on Chattanooga's financials, their enthusiasm on connecting well over 90,000 subscribers, and how the smart grid deployment is creating tremendous value for both the utility and the wider community.

For more about Chattanooga, take a look at our ongoing coverage. We've been following the network and the community since 2009.

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 23 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 3, 2017 by lgonzalez

Ammon’s fiber optic utility is opening up competition for residents and businesses in the Idaho community of about 15,000 people. Their software defined network (SDN) allows users on the network to increase efficiencies and explore all sorts of creative visions that require high-quality connectivity.

Innovation Just Keeps On Keepin' On

Now, Ammon is partnering with one of the providers on its infrastructure to launch the Ammon Tech Hub & Research Infrastructure Virtual Ecosystem (THRIVE). The project is available at no cost to researchers and developers and supports: 

1. Research requiring cloud functionality, high bandwidth, low latency network connectivity and a ‘living lab.’ 

2. Developers working on next generation networking services, products or Internet of Things (IoT) hardware in need of cloud functionality, high bandwidth, low latency network connectivity and a community of willing Beta testers. 

THRIVE is designed to allow Ammon premises that are connected to the Fiber-to-the-Home (FTTH) network participate in projects so locals can contribute to research and development. In its press release, the city described research on aging and “smart” smoke detectors in its press release. The project will allow researchers and developer from all over the world to access Ammon’s network for collaborative projects.

Read the press release here.

For more on Ammon’s ground-breaking approach, check out the video we produced with Next Century Cities:

Posted June 1, 2017 by lgonzalez

For the second week in row, our staff has felt compelled to address a misleading report about municipal networks. In order to correct the errors and incorrect assumptions in yet another anti-muni publication, we’ve worked with Next Century Cities to publish Correcting Community Fiber Fallacies: Yoo Discredits U Penn, Not Municipal Networks.

Skewed Data = Skewed Results

Professor Christopher S. Yoo and Timothy Pfenninger from the Center for Technology, Innovation and Competition (CTIC) at the University of Pennsylvania Law School recently released "Municipal Fiber in the United States: An Empirical Assessment of Financial Performance." The report attempts to analyze the financial future of several citywide Fiber-to-the-Home (FTTH) municipal networks in the U.S. by applying a Net Present Value (NPV) calculation approach. They applied their method to some well-known networks, including Chattanooga's EPB Fiber Optics; Greenlight in Wilson, North Carolina; and Lafayette, Louisiana's LUS Fiber. Unfortunately, their initial data was flawed and incomplete, which yielded a report fraught with credibility issues.

So Many Problems 

In addition to compromising data validity, the authors of the study didn’t consider the wider context of municipal networks, which goes beyond the purpose of NPV, which is determining the promise of a financial investment.

Some of the more expansive problems with this report (from our Executive Summary):

  • They erred in claiming Wilson, Lafayette, and Chattanooga have balloon payments at the end of the term. They have corrected that error in a press release. Other errors, such as confusing the technologies used by at least two networks, are less important but decrease the study’s credibility.
  • Several of the cities dispute the accuracy of the numbers used in the calculations for their communities.
  • The Net Present Value calculation is inappropriate in this context for...
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Posted May 30, 2017 by christopher

In an exciting milestone, this is podcast 100000000. Or 256 in decimal - you know, for the squares. While at the always-amazing Mountain Connect event in Colorado, I snagged an interview with Doug Seacat of Deeply Digital and Clearnetworx. They sought a grant from the Colorado Broadband Fund to deploy fiber and wireless to underserved Ridgway in western Colorado. 

What happened next is shocking but hardly an anomaly. Using what is often called the "Right of First Refusal," where incumbents get to prevent competition in state broadband programs, CenturyLink not only blocked Clearnetworx from getting the grant but got itself a hefty subsidy for a very modest improvement in services.

Ridgway residents went from almost certainly having a choice in providers and gigabit access to seeing their taxpayer dollars used to not only make competition less likely but also effectively blocking the gig from coming to everyone in town. In this interview, we discuss the details. 

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 20 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 May 26, 2017 by Nick

S&P Global Market Intelligence - May 26, 2017

Hard Data on Municipal Broadband Networks

Written by Sarah Barry James

There is a dearth of good data around municipal broadband networks, and the data that is available raises some tough questions.

A new study from University of Pennsylvania Law School Professor Christopher Yoo and co-author Timothy Pfenninger, a law student, identified 88 municipal fiber projects across the country, 20 of which report the financial results of their broadband operations separately from the results of their electric power operations. Municipal broadband networks are owned and operated by localities, often in connection with the local utility.

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Yet Christopher Mitchell, director of the Community Broadband Networks Initiative at the Institute for Local Self-Reliance, argued that Yoo's study did not present an entirely accurate or up-to-date picture of U.S. municipal networks.

"When I looked at the 20 communities that he studied — and his methodology for picking those is totally reasonable and he did not cherry pick them — I was not surprised at his results because many of those networks are either in very small communities … and the others were often in the early years of a buildout during a period of deep recession," Mitchell said.

As an example, Mitchell pointed to Electric Power Board's municipal broadband network in Chattanooga, Tenn. — one of the five networks Yoo identified as having positive cash flow but at such a low level that it would take more than 100 years to recover project costs.

...

In fact, without the revenue generated by the fiber-optics business, EPB estimated it would have had to raise electric rates by 7% this year.

According to Mitchell, Yoo's study captured the Chattanooga network when it was still "small and growing," but misses "what's going to happen for the rest of the life of the network, which I think is the more important part."

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Read the...

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Posted May 25, 2017 by Nick

Telecompetitor - May 25, 2017

Municipal broadband networks do not have a strong financial track record, according to an analysis conducted by the University of Pennsylvania’s Center for Technology, Innovation and Competition. The municipal broadband financial analysis, which looked at 20 municipal fiber projects, found that only nine were cash-flow positive and that of those, seven would need more than 60 years to break even.

...

An Opposing View

Municipal network advocate Christopher Mitchell, director of the Community Broadband Networks Initiative at the Institute for Local Self-Reliance, pointed to several flaws in the Penn Law municipal broadband financial analysis.

He noted, for example that a substantial portion of the 20 networks studied were “early in the process and very small.” He also argued that the 2010-2014 study period may have biased the results, as that period included a recession and subscribership for some of the networks has increased substantially since 2014. He noted, for example, that EPB’s broadband network in Chattanooga had about 50,000 to 55,000 subscribers in 2014 but has now hit the 90,000 mark.

The Penn Law authors’ approach was “not the proper way to measure these networks,” said Mitchell in a phone call with Telecompetitor. The analysis “doesn’t take into account jobs created or the impact on the municipal budget,” he said.

He argued, for example, that a municipality that previously paid $1 million annually for connectivity might instead pay itself $500,000 for connectivity on the municipal network.

...

Read the full story here.

Posted May 4, 2017 by Nick

TechDirt - May 4, 2017

Maine The Latest State To Try And Let Giant Broadband Providers Write Shitty, Protectionist State Law

Written by Karl Bode

One of (several) reasons why American broadband is so uncompetitive is the fact that we continue to let giant broadband mono/duopolies quite literally write awful state telecom law. As we've long noted, more than twenty different states have passed laws making it difficult to impossible for towns and cities to improve their local broadband networks -- even in instances when the entrenched duopoly refuses to. Many of these laws even ban towns and cities from entering into public/private partnerships with the likes of Google Fiber. It's pure protectionism.

Maine is the 49th ranked state in broadband speed and coverage -- in large part due to rural markets. Despite countless years of subsidies, broadband providers consistently refuse to seriously upgrade these areas at any scale due to costs. And yet they refuse to let the towns do it themselves, either. State Representative Nate Wadsworth has introduced HP1040, aka "An Act To Encourage Broadband Development through Private Investment." Except like so many of these bills, the proposed law's name is a stark 180 from what the legislative measure actually does.

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And laws banning municipal broadband -- and especially public/private partnerships -- accomplish the exact opposite of that. And while large ISPs (and their ocean of paid think tankers, economists, and other doller-per-holler professionals) have tried to make this a partisan issue -- the vast majority of municipal networks are built in Conservative areas with broad, bipartisan support. That's because there's one thing we can all agree on: nobody likes the local cable and broadband monopoly.

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Posted May 3, 2017 by lgonzalez

Today in the Maine Legislature, the Committee on Energy, Utilities and Technology voted unanimously to stop LD 1516, a bill that would restrict local telecommunications authority. After Tuesday's compelling testimony, when it was time for a Wednesday vote, LD 1516’s sponsor moved the bill be shelved.

Engaging Testimony

On Tuesday, May 2nd, the Committee of Senators and Representatives met to listen to testimony on the bill. We’ve provided audio of the public hearing.

South Portland, Islesboro, the Sanford Regional Economic Growth Council, and Rockport all sent experts with knowledge about developing public projects to testify in opposition to the bill. Representatives from GWI (the ISP working with several local communities that have invested in their own Internet infrastructure), the Maine Municipal Association, and the Mayors’ Coalition also testified against LD 1516.

Communities where publicly owned fiber is already improving local connectivity provided stories of how they tried unsuccessfully to work with incumbents. Page Classon from Islesboro described how incumbent proposals could be described as, “You pay for it, we own it, we charge you what we charge everyone else.” LD 1516 requires local referendums for such investments and Classon balked at taking such a proposal to the voters.

In South Portland, the city paid for construction of its open access fiber-optic network with general fund reserves. The language in LD 1516 restricts communities to funding through revenue bonds but South Portland uses its network to offer free Wi-Fi and to improve connectivity for municipal facilities. Under LD 1516, they would not have been able to make the investment.

Rick Bates from Rockport testified that the bill would force municipalities to contend with restrictions that legacy providers will never face and how those restrictions will not solve the problem of connecting rural Maine. Bates also took the opportunity to point out that organizations such as the Taxpayer Protection Alliance relies on misinformation and incorrect data, such as their erroneous assertion that Rockport has debt for its FTTH project.

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