Tag: "monopoly competition"

Posted April 20, 2022 by Karl Bode

Freshly proposed legislation in Missouri would prohibit towns and cities from using federal funds to improve broadband access in areas telecom monopolies already claim to serve. It’s just the latest attempt by incumbent telecom giants to ensure that an historic wave of federal broadband funding won’t harm their revenues by boosting local broadband competition.

Missouri SB 1074 - Sponsored by Sen. Dan Hegeman (R., District 12), proclaims that “no federal funds received by the state, political subdivision, city, town, or village shall be expended for the construction of retail broadband internet infrastructure unless the project to be constructed is located in an unserved area or underserved area.” It passed the Senate Commerce, Consumer Protection, Energy and the Environment Committee on April 13th.

According to the bill, the Missouri Office of Broadband Infrastructure would certify the project prior to a political subdivision receiving authorization. Before being authorized, the office would be mandated to check with incumbent broadband providers to ensure that they don’t offer service in the specified area. 

The bill prohibits federal funding for any projects in areas where a single provider already receives funding to deliver 100 Megabits per second (Mbps) download speeds. If it passes, it also allows Internet Service Providers (ISPs) to submit written challenges to grant applicants within 45 days. The Department of Economic Development would then be tasked with determining the truthfulness of each challenge. 

Only if applicants can prove they’re servicing an “unserved” or “underserved” area (which again is defined by flawed FCC Form 477 data that routinely overstates existing coverage and speeds using broadband definitions set at ankle height) will the applications be deemed valid. 

But the bill gives incumbent monopolies even greater leverage in the challenge process, by letting them challenge a deployment if an incumbent ISP has “taken affirmative steps to begin the process of construction to provide broadband,” or “has been designated funding through federal programs to support the deployment of broadband” in the targeted areas.

As such, it looks like the current version of the bill would allow incumbent ISPs  to block federal funding to competitors if...

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Posted February 18, 2022 by Sean Gonsalves

Welcome to In Our View. From time to time, we use this space to explore new ideas and share our thoughts on recent events playing out across the digital landscape, as well as take the opportunity to draw attention to important but neglected broadband-related issues.

As federal funds to expand high-speed Internet access began to flow to states and local communities through the American Rescue Plan Act, and with billions more coming under the Infrastructure Investment and Jobs Act, Big Telecom is beginning to mount its expected opposition campaign designed to discourage federal (and state) decision-makers from prioritizing the building of publicly-owned networks.

Predictably, a centerpiece of this anti-municipal broadband campaign is the trotting out of well-worn - and thoroughly debunked - talking points, arguing that federal funding rules should not “encourage states to favor entities like non-profits and municipalities when choosing grant winners” because of their “well-documented propensity to fail at building and maintaining complex networks over time.” That’s what USTelecom, a trade organization representing big private Internet Service Providers (including the monopolies) wrote in a memo sent last week to President Biden, the FCC, cabinet secretaries, House and Senate members, Tribal leaders, as well as state broadband offices. 

Part of the impetus, no doubt, was the flood of responses to the NTIA’s Notice and Request for Comment (including ours) documenting the need for community-driven solutions in this once-in-a-generation investment that could close the digital divide forever. That’s if we don’t just give billions in taxpayer dollars to huge monopolies in the hope that they’ll suddenly decide to build connections to the households in their territory that they’ve been ignoring for years despite getting billions of dollars already via the...

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