Tag: "monopoly competition"

Posted September 2, 2022 by Sean Gonsalves

The National Telecommunications and Information Administration (NTIA) announced earlier this week that Louisiana will be the first state in the nation to receive federal grant planning funds to help states prepare for the deployment of high-speed Internet infrastructure and digital skills training under the Biden Administration’s “Internet for All” initiative.

Enabled by last year's passage of the Infrastructure Investment and Jobs Act (IIJA), the $2.9 million heading to the Pelican State is from the Broadband Equity Access and Deployment (BEAD) program and the Digital Equity Act (DEA) – a development Commerce Secretary Gina Raimondo said was a signal that “the Internet for All initiative is on track and on schedule.”

Over the coming weeks, every state and territory will have funding in hand as they begin to build grant-making capacity, assess their unique needs, and engage with diverse stakeholders to make sure that no one is left behind. My thanks go to Governor Edwards and his team; Louisiana was among the first to sign onto Internet for All and to apply for funding, and I know they’re ready to get to work for the people of Louisiana.  

According to NTIA’s press announcement, $2 million of the planning funds being allocated to Louisiana come from the BEAD program and will help the state:

  • Identify unserved and underserved locations
  • Support outreach to diverse stakeholders across the state
  • Train employees administering the state’s broadband program
  • Assist with asset mapping to track broadband adoption, affordability, equity, access and deployment activities
  • Survey unserved, underserved, and underrepresented communities to better understand barriers to adoption 
  • Ramp up efforts to support local coordination at the local and regional levels 

The other $900,000 will come from the Digital Equity Act, also passed as part of IIJA. That money will fund Louisiana’s development of a statewide Digital Equity Plan; hire a Digital Equity/Inclusion Specialist to create and execute the state’s digital equity strategy; foster partnerships with a consortium of higher education...

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Posted August 29, 2022 by Sean Gonsalves

Louisiana’s broadband deployment grant program, GUMBO (Granting Unserved Municipalities Broadband Opportunities), was announced with great fanfare by Gov. John Bel Edwards and several state lawmakers when earlier this summer they visited Lake Providence in East Carroll Parish, the first community in the state to be the beneficiaries of the $130 million grant program.

Broadband-hungry residents and businesses were licking their chops at the prospect of finally getting access to reliable high-speed Internet service in an area that had long been underserved. But what’s leaving a bad taste in the mouths of East Carroll Parish residents is an eleventh-hour challenge to the grant award by the regional cable company.

Conexon was awarded a $4 million grant to bring fiber-to-the-home (FTTH) service to over 2,500 households in the rural northeast part of the state. But the monopoly cable provider who serves the area – Sparklight (formerly known as Cable One) – filed a challenge to the grant claiming the cable company already serves 2,856 homes there, even though, as noted by The Advocate, that is nearly 1,000 more homes than what U.S. Census data reports in the project area.

The challenge has brought the project to a grinding halt on the day network construction was slated to begin. The delay has community residents and some state lawmakers frustrated as the state’s Division of Administration tries to figure out if the challenge has any real merit.

As reported by The Advocate:

Generally, GUMBO regulations allow a seven-day window to protest after an award is announced. Protestors have 10 days to provide data supporting their challenge. Bid winners then have 10 days to respond and the Division of Administration has 20 days to decide. Either side can appeal to Commissioner of Administration Jay Dardenne. Once...

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Posted August 25, 2022 by Ry Marcattilio

Join us live on Thursday, August 25th, at 5pm ET for the latest episode of the Connect This! Show. Co-hosts Christopher Mitchell (ILSR) and Travis Carter (USI Fiber) will be joined by regular guests Kim McKinley (UTOPIA Fiber) and Doug Dawson (CCG Consulting). They'll dig into recent news - from big cable companies and telcos going after BEAD grants, to the announcement of 25 Gigabit per second service across the footprint of Chattanooga's municipal network, to the future of streaming video, to a reflective look on how well (or not) we did with the broadband stimulus.

Email us broadband@muninetworks.org with feedback and ideas for the show.

Subscribe to the show using this feed or find it on the Connect This! page, watch on YouTube Live, on Facebook live, or below.

Posted July 29, 2022 by Ry Marcattilio

A new report out from the Copia Institute highlights the failures of the current national broadband marketplace and the value of locally-driven connectivity solutions, while underscoring once again the potential for open access models to break entrenched monopoly power. Along the way, the report offers some useful ways of reframing our understanding of how we got to a place where Internet access is dominated by just a handful of companies across the United States.

Cities as Laboratories, and the Possibilities of Open Access

“Competition is Just a Click Away” covers a lot of ground. Its author - Karl Bode - is a veteran of the broadband policy space (including writing for ILSR recently), and has long helped shed light on the consequences in increasing monopoly power in the technology landscape.

In the report, he begins by laying out the problems borne from a lack of competition, including: the consequences of regulatory capture of the FCC by huge, for-profit companies, past and continued problems with mapping, and the resulting slower speeds, lack of investment, astonishing extraction of wealth, and worrying lobbying power enjoyed by monopoly providers, all fueled by increasingly high prices and the efficient extraction of wealth from communities to further concentrate market reach and lobbying power. 

An important early point made in the report is that, in the face of these realities, over the last fifteen years local cities have become “telecom laboratories where financial and technical innovation flourish, providing blueprints federal policy makers struggling to boost affordable broadband availability would be foolish to ignore.” Chattanooga and a handful of other city-owned and operated networks illustrate the power of communities to retake control of essential infrastructure.

The community broadband movement is an organic market response to market failure and the extractive power of unchecked monopolization.

Among the many results, the report points out, is that subscribers in the United States pay higher prices for slower service than many other places. But it doesn’t have to be that way, Bode reminds us.

Open access networks offer a concrete path to separating Internet infrastructure from service provisioning, and allow even conservatively minded cities to use...

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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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