Tag: "barriers"

Posted February 16, 2021 by Ry Marcattilio-...

Update: The Community Broadband Action Network (CBAN) notes that it looks like SSB 1184 is dead, having been shelved in committee yesterday. They say the "bill was briefly discussed by a subcommittee of the House Commerce Committee on February 16th, but postponed 'indefinitely.'"

Original story:

Less than a year after an attempt to hamstring municipal broadband in Iowa, local opponents are at it again. If you’ve been around the block, Senate Study Bill 1184 will look remarkably similar to SSB 3009 from last January 2020, and that’s because it’s nearly identical. 

Like its last incarnation, SSB 1184 threatens the viability of any new municipal broadband effort by placing draconian financial barriers in the way, and, if passed, handcuffs existing networks as well as those under construction. Though there are no public fingerprints on the bill, the word around the capitol is that Mediacom is behind it. Among its provisions are those that would:

  • Prohibit cities and towns from issuing loans from the general or reserve fund or an existing electric utility to a broadband division at an interest rate lower than the prevailing market rate set by private financing institutions.
  • Prohibit government entities from forgiving debt related to the construction or operation of a telecommunications system.
  • Set a maximum interest rate at which a municipal broadband utility could borrow to finance a new network, cutting off funding avenues
  • Disallow existing municipal networks from responding to the market in setting rates.
  • Prevent municipal network from bundling multiple city services in single transactions.

Individually, any of these conditions would represent a significant win for a provider looking to restrict competition with cities interested in building Internet infrastructure; collectively, they would be a gigantic step backwards in a state that ranks...

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Posted February 10, 2021 by Ry Marcattilio-...

It’s official. Senate Bill 74 became law last week when Governor Asa Hutchinson signed it, significantly reducing (but not completely removing) barriers to municipal broadband in the state of Arkansas, with both chambers voting unanimously in approval of the legislation. While the legislation doesn’t completely eliminate existing barriers to municipal broadband in the state, we consider it an historic moment and a significant step forward.

The central win in SB 74 is that it allows government entities “to acquire, construct, furnish, or equip facilities for the provision of voice services, data services, broadband services, video services, or wireless telecommunications services” so long as they “partner, contract, or otherwise affiliate with an entity that is experienced in the operation of the facilities,” as well as conduct due diligence, and provide ten-days’ notice and hold a public hearing.

Importantly, it also allows municipalities to issue general obligation bonds or impose special taxes to do so; prior, they could only do so after acquiring third-party funding through grants or loans. Finally, the legislation also expands the emergency provisions clause to include health and public safety operations.

SB 74 was first filed in early January, making its way through the Agriculture, Forestry, and Economic Development Committee before returning to the floor in the third week of the month. There it was amended once more to remove language expressly permitting municipalities from construction, owning, and operating broadband networks, leaving the law a bit unclear where local authority ends. We, along with the Coalition for Local Internet Choice, take this to mean that municipalities without electric utilities that try build communications facilities to do retail service could run into some legal challenges. On the whole however, SB 74 remains a significant win for municipalities to pursue projects. 

Director of Community Broadband Networks Christopher Mitchell had this to say:

We are excited to see Arkansas encourage more investment in its communities by its communities. Between the electric cooperatives and the potential for community networks and partnerships, local businesses and residents will soon be seeing much better...

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Posted January 25, 2021 by Ry Marcattilio-...

In our year-end roundup and prediction show on the Community Broadband Bits podcast last month, the more optimistic members of the team predicted that 2021 would see some states remove barriers to municipal broadband. 

It looks like in a few places momentum might be headed in that direction. Last week we wrote about a bill in Arkansas that would remove almost all barriers in the state, allowing political subdivisions and consolidated utility districts to pursue projects on their own and without external grants. 

New legislation in Washington looks similarly promising. On Thursday, January 21st, House Bill 1336 was introduced [pdf], removing specific barriers which currently prevent Public Utility Districts (PUDs) from delivering broadband service on a retail basis. Currently, PUDs are only able to offer unrestricted broadband on a wholesale basis through a dark fiber or open access network. Under certain conditions PUDs can offer retail service, but only if an existing Internet Service Provider (ISP) leasing that PUD infrastructure ceases operations, and even then, they are only allowed to do so as long as no other private ISP steps up to offer retail service. In the interim, PUDs can provide service for a maximum of five months and must, within thirty days, begin the process of finding a replacement.

The new law removes that barrier, and not only allows PUDs to construct and operate retail broadband networks inside their existing territory, but outside as well. In addition, it establishes that PUDs can work with federally recognized tribes to construct infrastructure. 

Bipartisan Approach

The co-sponsors of the bill have staked out different rationales for removing the restrictions, with Drew Hansen calling for broadband to operate as a public utility and Alex Ybarra more concerned with the unconnected pockets of Washingtonians left by the private ISPs. Bill co-sponsor Alex Ybarra told the Washington State Wire:

We knew prior to...

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