As SB 186 sits patiently in committee, advocates of better broadband from the private and public sectors are banding together to share their thoughts on the bill. They believe that the bill will stifle attempts to improve connectivity throughout the state. In a recent letter to the Chair and members of the the Missouri Senate Local Government and Elections Committee, they laid out the other reasons why SB 186 should not advance.

"Harmful...Stifling...Hampering"

The Coalition for Local Internet Choice (CLIC) organized the letter and signed on with 14 other companies and associations. It wouldn’t be the first time - Missouri is an all too common battle ground in the fight to protect remaining potential for municipal networks and public private partnerships.

They describe the bill as:

“…[H]arming both the public and private sectors, stifling economic growth, preventing the creation or retention of jobs around the State, particularly in rural areas, hampering work-force development, and diminishing the quality of life in Missouri.”

This is the third time in as many years that Missouri State Legislators have tried to push through legislation that would benefit large cable and DSL incumbents. The goal of the bill this year as before is to lock out any possibility of competition now or in the future. Last year, HB 2078 saw some drama when its author tried to slip in the foul language within the text of a public safety bill that had nothing to do with telecommunications. Luckily, sharp advocates were paying attention and had already educated Members who were on the conference committee. Those in favor of local authority stripped out the language and when anti-muni Members tried to amend it into a third bill, the author moved to have it removed under threat of filibuster.

Don't Make A Rough Situation Worse

Missouri already imposes restrictions on municipal networks. In the letter, the signatories refer to local authority as a key in solving Missouri's poor connectivity problems:

Private sector companies, trade organizations, and local authority advocacy groups went on record last week in opposition to HB 2108, a Virginia bill that would severely restrict local communities’ options to improve connectivity. They joined together in a letter to the Chairman of the Virginia House Commerce and Labor Committee, there the bill is now waiting for hearing, Republican Terry J. Kilgore.

Joining Local Communities To Oppose

A number of local governments have already passed resolutions condemning the legislative attack on their right to make local telecommunications decisions and we expect to see more. Del. Kathy Byron, a legislative darling of big cable and DSL providers in Virginia, introduce the bill earlier this month. Local and national media outlets immediately caught the story, and constituents have contacted Byron's office to express their concern. 

This letter from leaders in the industry underscored their concern that potential partners feel the bill is a death knell for public-private partnerships:

It would interfere with the ability of private companies to make timely sales of equipment and services to public broadband providers. It would deny private companies timely access to advanced networks over which they could offer business and residential customers an endless array of modern products and services. It would also impair economic and educational opportunities that contribute to a skilled workforce from which businesses across the state will benefit. 

The authors of the letter find the slow speeds required in the bill especially troubling for rural communities. The bill sets the standards at 10 Megabits per second (Mbps) download and 1 Mbps upload - speeds reminiscent of antiquated DSL:

Tune in to the Grow2Gig+ webinar from the Schools, Health, & Libraries Broadband Coalition (SHLB) on Tuesday, January 10, 2017. The topic will be "Partnerships and Rural Broadband Needs" and our Christopher Mitchell will moderate the discussion. The hour-long event starts at 11 a.m. EST.

Christopher will offer information on steps local communities can take to bridge the digital divide. Joanne Hovis, President of CTC Technology & Energy, will address some of the challenges found in rural areas. SHLB Executive Director John Windhausen will spend some time on the potential role of public-private partnerships. John will discuss partnerships as envisioned by SHLB in its American Broadband Connectivity (ABC) Proposal for the Trump Administration. You can follow the discussion with #Grow2Gig and #RuralBB.

The webinar and is free and open to the public. It’s the second in the Grow2Gig+ webinar series. You can register online for the webinar and check out the other events on deck at the SHLB website.

As communities across the country realize the big corporate providers may never bring the kind of connectivity they need, public-private partnerships (PPPs) are sprouting up everywhere. A new report by Joanne Hovis, Marc Schulhof, Jim Baller, and Ashley Stelfox, takes a look at the issues facing local governments and their private sector partners.

Interjection from Christopher Mitchell: Partnerships are emphatically not sprouting up everywhere. To be more correct, enthusiasm around the idea of partnerships is sprouting up in many places. But compared to the hundreds of municipal networks currently in operation, we could maybe name ten partnerhips in existence today.

The Emerging World of Broadband Public-Private Partnerships: A Business Strategy and Legal Guide examines the practical considerations when investigating PPPs for better connectivity. The report was published by the Coalition for Local Internet Choice (CLIC) and the Benton Foundation. 

The Benton Foundation sums up the three models explored in the report:

Private investment, public facilitation – The model focuses not on a public sector investment, but on modest measures the public sector can take to enable or encourage greater private sector investment. Google Fiber is the most prominent example, but there is significant interest among smaller companies

Private execution, public funding – This model, which involves a substantial amount of public investment, is a variation on the traditional municipal ownership model for broadband infrastructure—but with private rather than public sector execution.

Shared investment and risk – In this model, localities and private partners find creative ways to share the capital, operating, and maintenance costs of a broadband network.

The authors also share expertise on a range of legal topics that often arise when working with a private sector partner. They share their years of experience with matters such as confirmation of authority at state and local levels, project planning, and common issues related to negotiating the agreement.

Dark fiber is a growing business for both private and publicly owned networks. Data transport, data centers, ILECs, and CLECs are some of the most common users. Increasingly, wireless providers are turning to dark fiber for backhaul.

A May Fierce Telecom article reports that 14 percent of Zayo's wireless backhaul services are dark fiber solutions:

"We're seeing a shift with wireless backhaul contracts to dark fiber to the tower and we're starting to see that show up as the trend over the last couple of quarters," [Chairman and CEO Dan] Caruso said … "And you see it more pronounced in the current quarter where 14 percent of our product mix for fiber to the tower is dark fiber to the tower and you see that's grown and taken on a bigger piece of the pie."

Dark fiber leases have played an important role in developing revenue for municipalities that have invested in fiber infrastructure. Dark fiber leasing can be the only option in places where state barriers limit local options.

Santa Monica, Columbia in Missouri, and Maryland's Howard County, are only a few communities that lease dark fiber to ISPs and other commercial customers. A few networks, including Metronet Zing in Indiana, offer only dark fiber services. It is worth noting that, as Santa Monica discovered, the vast majority of businesses and residents prefer and easy, affordable, and reliable lit service rather than dark fiber. But the dark fiber niche is growing.

As more customers look for the service, negotiating leases and pricing models can be challenging. Municipal networks seeking guidance can start with a 2012 report from CTC Technology & Energy, Dark Fiber Lease Considerations [PDF].

As the Senate version of Missouri's latest anti-muni bill, SB 266 [PDF], moved forward recently, a group of private sector companies and interested organizations appealed to state lawmakers [PDF] urging them to stop it in its tracks.

In January we reported on HB 437, introduced by House Member Rocky Miller. Its Senate companion, which establishes an identical slash and burn strategy to discourage municipal broadband investment, appears to be gathering interest.

The Senate Jobs, Economic Development and Local Government Committee heard the bill on February 18th but chose not to vote on it, reports the Columbia Tribune. Members of the committee received a copy of the correspondence.

Readers will recall that Columbia is one of the many communities that have been actively investigating the possibility of municipal open access network investment. Last fall, Columbia received the results of a feasibility study that recommended the town make better use of its existing fiber assets for economic development purposes.

The letter, sent to Senator Eric Schmitt, Chairman of the Missouri Senate Committee on Jobs, Economic Development, and Local Government, stressed the importance of public private partnerships in the modern economy. SB 266 and HB 437, with their onerous barriers, would certainly discourage private investment in Missouri. From the letter:

If you missed Chris in D.C. at the New America Foundation on May 28th, you can still catch the action via the archived presentation.

Chris joined Joanne Hovis, Will Aycock, and Catharine Rice to discuss "Localism Over Consolidation: An Exploration of Public Broadband Options." New America Foundation writes:

Today, more and more communities are thinking of broadband as a local issue. Even large cities like Baltimore, Seattle and New York have recently begun public discussions about ways to improve broadband services and what role the local government could play in that improvement. Current technology policy debates about net neutrality and the potential Comcast-Time Warner Cable merger mean it is more important than ever that local governments play a more active role in ensuring their communities do not get left behind in the digital age.

New America’s Open Technology Institute presented a discussion of various approaches to local investment in broadband. The panel featured a diverse set of experts on public broadband networks and projects, including the manager of a municipal fiber network in Wilson, NC. Panelists discussed different approaches communities have taken so far and share thoughts on what steps other local governments can take going forward to support access to affordable and high-speed broadband.

The discussion runs just under 90 minutes.

New America Foundation's Open Technology Institute will host "Localism Over Consolidation: An Exploration of Public Broadband Options" from 9:30 - 11 a.m. on May 28th. Chris will be participating in the discussion; if you can't make it to DC, the event will be live streamed.

Conversation will focus on different approaches to improve connectivity and community strategies to make those approaches successful.

From the event page:

Today, more and more communities are thinking of broadband as a local issue. Even large cities like Baltimore, Seattle and Los Angeles have recently begun public discussions about ways to improve broadband services and what role the local government could play in that improvement. Current technology policy debates about net neutrality and the potential Comcast-Time Warner Cable merger mean it is more important than ever that local governments play a more active role in ensuring their communities do not get left behind in the digital age.

Joining Chris:

• Joanne Hovis,President, CTC Technology & Energy, @joannehovis
• Will Aycock, General Manager, Greenlight, Wilson, NC, @greenlightnc
• Catharine Rice, President, SouthEast Association of Telecommunications Officers and Advisors (SEATOA), @seatoa

Sarah Morris, Senior Policy Counsel at the New America Open Technology Institute will moderate. You can sign up for the event and livestream on the 28th at the event page.