Torpedo legislation aimed at municipal network initiatives don’t usually appear in October, but Michigan’s year-round legislature is making 2017 atypical. Last week, Freshman Representative Michele Hoitenga from the rural village of Manton in Wexford County introduced a bill banning investment in municipal networks.

HB 5099 is short; it decrees that local communities cannot use federal, state, or their own funds to invest in even the slowest Internet infrastructure, if they choose to do it themselves:

THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 

SEC. 13B. (1) EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (2), A LOCAL UNIT SHALL NOT USE ANY FEDERAL, STATE, OR LOCAL FUNDS OR LOANS TO PAY FOR THE COST OF PROVIDING QUALIFIED INTERNET SERVICE. (2) A LOCAL UNIT MAY ENTER INTO AN AGREEMENT WITH 1 OR MORE PRIVATE PARTIES TO PROVIDE QUALIFIED INTERNET SERVICE. (3) AS USED IN THIS SECTION, "QUALIFIED INTERNET SERVICE" MEANS HIGH-SPEED INTERNET SERVICE AT A SPEED OF AT LEAST 10 MBPS UPSTREAM AND 1 MBPS DOWNSTREAM.

The exception allows local communities to engage in public-private partnerships, but the bill’s ambiguous language is likely to discourage local communities from pursuing such partnerships. As we’ve seen from partnerships that have successfully brought better connectivity to towns such as Westminster, Maryland, communities often took the initiative to invest in the infrastructure prior to establishing a partnership. Typically, the infrastructure attracts a private sector partner. If a community in Michigan wants to pursue a partnership that suits the exception of HB 5099, they will first have to grapple with the chicken and the egg dilemma.

Rather than put themselves at risk of running afoul of the law, prudent community leaders would probably choose to avoid pursuing any publicly owned infrastructure initiatives.

Munis Gaining Ground In Michigan

Michigan already has a significant state barrier in place; municipalities that wish to improve connectivity must first appeal to the private...

A recent proposal being considered by the FCC that has raised the loudest outcry has been the status of mobile broadband in rural areas. Now that Verizon is discontinuing rural subscriber accounts, the FCC will be able to see those concerns come to life.

Dear John...

The company has decided to cut service to scores of customers in 13 states because those subscribers have used so many roaming charges, Verizon says it isn’t profitable for the company. Service will end for affected subscribers after October 17th.

Verizon claims customers who use data while roaming via other providers’ networks create roaming costs that are higher than what the customers pay for services. In rural communities, often mobile wireless is the best (albeit poor) or only option for Internet access, so subscribers use their phones to go online.

Subscribers are from rural areas in Alaska, Idaho, Indiana, Iowa, Kentucky, Maine, Michigan, Missouri, Montana, North Carolina, Oklahoma, Utah, and Wisconsin.

In a letter sent to customers scheduled to be cut off, Verizon offered no option, such as paying more for more data or switching to a higher cost plan. Many of the people affected were enrolled in unlimited data plans:

“During a recent review of customer accounts, we discovered you are using a significant amount of data while roaming off the Verizon Wireless network. While we appreciate you choosing Verizon, after October 17th, 2017, we will no longer offer service for the numbers listed above since your primary place of use is outside the Verizon service area.”

Affecting Customers And Local Carriers

Apparently, Verizon’s LTE in Rural America (LRA) program, which creates partnerships with 21 other carriers, is the culprit. The agreements it has with the other carriers through the program allows Verizon subscribers to use those networks when they use roaming data, but Verizon must pay the carriers’ fees. Verizon has confirmed that they will disconnect 8,500 rural customers who already have little options for connectivity.

Philip Dampier at Stop The Cap! writes:

Verizon has leased out LTE spectrum covering 225,000 square miles in 169 rural counties in 15 different states. The company said more than 1,000 LTE cell sites have been...

This is the transcript for episode 269 of the Community Broadband Bits Podcast. Pete Hoffswell, the Broadband Services Manager for Holland, Michigan, joins the show to discuss the city's downtown pilot program. Listen to this episode here.

Pete Hoffswell: The demand is here and it's now and we have people banging on our doors saying "Come on, let's do this."

Lisa Gonzalez: This is episode 269 Community Broadband Bits podcast from the Institute for Local Self Reliance. I'm Lisa Gonzalez. This week Christopher talks with Pete Hoffswell from Holland, Michigan. The community has had fiber in place for a while now, but are in the process of building out a pilot program to offer connectivity to downtown areas. In this interview Pete explains what Holland has achieved, what challenges they face, and what they have in mind for better connectivity. Now here's Christopher and Pete Hoffswell from Holland, Michigan.

Christopher Mitchell: Welcome to another edition of the Community Broadband Bits podcast! I'm Chris Mitchell with the Institute for Local Self Reliance up in Minneapolis, Minnesota and today I'm speaking with Pete Hoffswell, the Broadband Services Manager for the Holland board of Public Works in Michigan. Welcome to the show.

Pete Hoffswell: Hi, Chris, how are you doing today?

Christopher Mitchell: I'm doing good. It's good to talk to you here. Let's just dig in a little bit with what is Holland like?

Pete Hoffswell: You know, Holland, Michigan is on the shore of Lake Michigan. We're about 100 miles from Chicago by boat so it's a little longer by the highway but we're not that far from Chicago. We're right outside of Grand Rapids, Michigan. Holland has a population of 33,000 and is part of a larger regional area of 100,000 people. It was settled in 1847 by Dutch immigrants, as you could well guess. We host a Tulip Time festival here with over 600,000 visitors every year. We have a lot of tourist influx into our town, it's a big part of our DNA here. But another big part of Holland is our business. We are a support industry for automotive, of course, a lot of light industry in our town and a lot of knowledge workers working downtown in small startups....

In a record high turnout for a non-general election, voters in Lyndon Township, Michigan, decided to approve a bond proposal to fund a publicly owned Fiber-to-the-Home (FTTH) network. The measure passed with 66 percent of voters (622 votes) choosing yes and 34 percent (321 votes) voting no.

Geographically Close, Technologically Distant

The community is located only 20 minutes away from Ann Arbor, home to the University of Michigan and the sixth largest city in the state, but many of the Township’s residents must rely on satellite for Internet access. Residents and business owners complain about slow service, data caps, and the fact that they must pay high rates for inadequate Internet service. Residents avoid software updates from home and typically travel to the library in nearby Chelsea to work in the evening or to complete school homework assignments.

Lyndon Township Supervisor Marc Keezer has reached out to ISPs and asked them to invest in the community, but none consider it a worthwhile investment. Approximately 80 percent of the community has no access to FCC-defined broadband speeds of 25 Megabits per second (Mbps) download and 3 Mbps upload.

“We don’t particularly want to build a network in our township. We would rather it be privatized and be like everybody else,” Keezer said. “But that’s not a reality for us here.”

When local officials unanimously approved feasibility study funding about a year ago, citizens attending the meeting responded to their vote with applause. 

A Little From Locals Goes A Long Way

The community will finance their $7 million project with a 2.9 millage over the next 20-years, which amounts to a $2.91 property tax increase per $1,000 of taxable value of real property. Average cost per property owner will come to $21.92 per month for the infrastructure. Basic Internet access will cost $35 - 45 per month for 100 Mbps; speeds will likely be symmetrical. They estimate the combined cost of infrastructure millage and monthly fee for basic service will be $57 - 67...