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Neighborly Announces 35 Communities Joining Accelerator Program

Earlier this summer, we talked with Jase Wilson and Lindsey Brannon from Neighborly, the investment firm that uses online investing to allow individuals to invest in publicly owned infrastructure projects, including broadband networks. Jase and Lindsey described a program they had just launched, the Neighborly Community Broadband Accelerator. 

A Boost for Local Broadband

The program is designed to help local communities with necessary tools and financing from the start of their project planning. The Accelerator will provide mapping and community engagement tools, help from experts who will share best practices, and access to industry partners, such as ISPs and engineers. In addition to these and other information perks, communities accepted to the program will have the benefit of Neighborly financing at a competitive, below industry rate cost.

Applications were due by September 28th and more than 100 applications indicate that, more than ever, local communities are interested in taking action to improve connectivity. These 35 communities were accepted into the Broadband Accelerator Program:

"The Big Easy" Wants I-Net Design, Releases RFP: Proposals Due Oct. 24

Last week, the city of New Orleans, through the Foundation for Louisiana (FFL), released a Request for Proposals (RFP) in its search for technical expertise to provide a fiber-optic network design and services related to its construction. Proposals are due October 24th.

The Vision

The Institutional Network (I-Net) design vision encompasses the entire city and will also provide wireless services. It will serve traffic light and advanced camera systems, streetlights, in addition to Internet, VoIP, video conferencing, and a list of other services cities use on a regular basis. From the RFP:

Ultimately, this new fiber network will help meet New Orleans’ goal to serve city-owned and operated buildings and facilities located throughout the 350-square mile city. This new network will improve services to residents, support implementation of Smart City applications and assist the City to achieve cost efficiencies in daily operations while helping disadvantaged residents to bridge the digital divide.

As part of this project, high-speed Internet access may also be offered for public use in city-owned or supported facilities like parks, libraries and New Orleans Recreation Development Commission (NORDC) centers. The City imagines working with community organizations to offer new services such as digital skills training in these spaces. Additionally, this project will explore design options that allow the network to be leveraged for future potential public private partnerships.

A Number Of Tasks To Tackle

Broadband and News Concerns in New Orleans

The news that the New Orleans Times-Picayune would dramatically cut back on its printed edition led to a fine article discussing the role of the digital divide as it becomes harder to live without access to the Internet.
It’s harder to profit from the investment in broadband infrastructure in rural areas where fewer residents live further apart. Among poorer residents, broadband – and even newspaper subscriptions – tend to be luxuries for job seekers or people who are still trying to rebuild homes damaged by Hurricane Katrina nearly seven years ago. The Picayune’s decision to print only three days a week means fewer newspapers will get passed around local barber shops, beauty salons, cafes and convenience stores — places where many people who don’t have broadband access at home often go to exchange information about what’s happening in their neighborhoods.
Access to the Internet becomes more important every day but our policymakers continue to rely on some of the most hated corporations in the nation (with good reason) to deliver it. And they continue to fail. Communities should continue investigating how they can take greater responsibility for solving their problems locally.

Cable Monopoly Result of Private Sector, not Public

A common misconception is that local governments award exclusive (or monopolistic) franchises to cable companies and that is why the US has so little cable competition.  However, no local government has done this since the 1996 Telecommunications Act 1992 Cable Act made the practice illegal.

But even before the '96 Telecom Act '92 Cable Act, local governments tended to award non-exclusive contracts to cable companies because they wanted more competition, not less -- as illustrated in this article about Cox preparing to renew its franchise agreement with New Orleans.

Federal laws and Federal Communications Commission decisions also have sharply curtailed the city's negotiating ability. Even if other companies were seeking permission to provide cable to local customers, said William Aaron, a legal adviser to the council on telecommunications issues, council members could not arbitrarily refuse to renew the Cox franchise. The council could do that only on the basis of certain limited criteria, such as that the company has not lived up to the terms of the 1995 agreement. Cox has had a nonexclusive franchise to operate in Orleans Parish since 1981, meaning that other companies also can apply to provide cable services, though none has done so. The franchise was renewed in 1995.
For years, state and federal policies have limited local authority to require just compensation for access to the valuable right-of-way because the cable and telephone companies pretended that they would invest more and create competition if local authority were preempted. Local authority has been significantly preempted in many communities without any real increase in competition or lowering of prices. No surprise there - another victory for companies better at lobbying than providing essential services.