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Maine Anti-Municipal Broadband Bill Receives Coverage in TechDirt

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.

Maine Bill To Restrict Authority Up For Hearing May 2nd

Earlier this week, we learned that a bill in the Maine House of Representatives had been introduced that would steal local telecommunication authority from communities working to improve their connectivity. LD 1516 / HP 1040 was assigned to the House Energy, Utilities and Technology Committee and is scheduled for a hearing on May 2nd at 1 p.m.

No Barriers...Yet

Maine is a mostly rural state that doesn’t draw much investment from national cable and telephone companies, so in the past few years local folks have started taking steps to improve Internet access for themselves. Their efforts have gotten the attention of the big corporations that fear competition and, since Maine doesn’t have restrictions on municipal networks, it appears to be one of the next targets. Rep. Nathan Wadsworth’s bill imposes a number of restrictions that threaten to derail current or proposed projects to bring better connectivity to several Maine communities. 

The bill is deceivingly titled “An Act To Encourage Broadband Development through Private Investment,” but it will discourage any new investment that may attract new entrants to Maine.

Let Them Know What You're Thinking

If you want to contact members of the committee and tell them that this bill will discourage investment, rather than encourage it, contact information for all the members is available here. The best time to stop a bill is early in committee. If one of these elected officials represents you, be sure to let them know.

Bill To Limit Local Authority Appears In Maine

Maine is the latest battleground for local telecommunications authority. A bill in the state’s House of Representatives threatens to halt investment in “The Pine Tree State” at a time when local communities are taking steps to improve their own connectivity.

"I Do Not Think It Means What You Think It Means"

Rep. Nathan Wadsworth (R-Hiram) introduced HP 1040; it has yet to be assigned to a committee. Like most other bills we’ve seen that intend to protect the interests of the big national incumbent providers, this one also has a misleading title: “An Act To Encourage Broadband Development through Private Investment.” Realistically, the bill would result in less investment by discouraging a whole sector - local communities - from making Internet infrastructure investment. 

Large national companies have thus far chosen not to invest in many Maine communities because, especially in the rural areas, they just aren’t densely populated. In places like Islesboro and Rockport, where residents and businesses needed better connectivity to participate in the 21st century economy, locals realized waiting for the big incumbents was too big a gamble. They exercised local authority and invested in the infrastructure to attract other providers for a boost to economic development, education, and quality of life.

Not The Way To Do This

If HP 1040 passes, the community will first have to meet a laundry list of requirements before they can exercise their right to invest in broadband infrastructure.

HP 1040 contains many of the same components we see in similar bills. Municipalities are only given permission to offer telecommunications services if they meet those strict requirements: geographic restrictions on service areas, strict requirements on multiple public hearings including when they will be held and what will be discussed, the content and timelines of feasibility studies, and there must be a referendum.

The bill also dictates financial requirements regarding bonding, pricing, and rate changes. Municipalities cannot receive distributions under Maine’s universal service fund.