Tag: "report"

Posted May 24, 2017 by lgonzalez

Usually, we ignore the misinformation released by the Taxpayers Protection Alliance (TPA) but their latest efforts are so shady, we felt it was our responsibility to shine a light on its lack of validity and the organization's credibility. Our report, Correcting Community Fiber Fallacies: Taxpayers Protection Alliance Edition, takes a deeper look at the TAP's most recent attempt, which is filled with errors and a blatant disregard for the truth.

What Is A "Boondoggle" Anyway? This Map!

When we looked deeper, we discovered that TPA’s "Broadband Boondoggles: A Map of Failed Taxpayer-Funded Networks" is more misinformation than map. 

All of the basic errors in the map display a lack of attention to detail; our short report examines the deceitful characteristics of this resource. Our purpose in publishing this report is to caution community leaders and citizens who are investigating publicly owned infrastructure; the TPA is not a credible source.

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One of the more obvious errors: Sandy, Oregon, appears in Utah.

The map is also visually deceiving because it includes 213 communities, but only provides information for 87. Of the 213 on the map, the TPA only label 14 as "failures," which means less than 10 percent of the networks they document fit their own definition of "failure."

Clearly, TPA has proven that it seeks to spread any and all information it can find to discredit municipal networks, regardless of accuracy. Communities, public officials, or staff that research the option of publicly owned networks should review our report if they have ever considered the data in the Boondoggles Map.

Consider the Source

If your community is seeking better connectivity, thorough research will be the foundation of how you proceed. As part of your research, be sure to review the organizations that offer information.

From our report:

This brief report does not claim all municipal networks are successes. Municipal networks are challenging in the best of circumstances and local governments must perform due diligence... Read more

Posted March 20, 2017 by lgonzalez

A new case study recently released by the Berkman Klein Center for Internet & Society at Harvard University describes how the community of Concord, Massachusetts deployed its extensive municipal fiber-optic network and smart grid. In Citizens Take Charge: Concord, Massachusetts, Builds a Fiber Network, the authors offer history, and describe the benefits to the community from better connectivity and enhanced electric efficiencies.

 

 

Key Findings from the report:

  • In 2009 Concord Municipal Light Plant (CMLP) started work on a 100-mile fiber optic and wireless network to provide backhaul for a smart grid. The fiber passes 95 percent of homes and businesses in town. 
  • The $3.9 million project was paid for by electric ratepayers through annual payments that started at $418,000 per year and will decline to $207,000 in the 15th and final year of payments. The fiber will last for at least 30 years. 
  • In a second step, CMLP established a telecommunications division, called Concord Light Broadband, and borrowed $600,000 to fund startup costs of an Internet access business and fiber connections to customers. 
  • CMLP offers residential data plans of up to 200 Mbps, upload and download, for $89 monthly with a two-year agreement. CMLP competes with Comcast. CMLP doesn’t offer phone or video, but does provide much faster data upload speeds than does Comcast. 
  • The project is still being built: at the end of 2016, Concord Light Broadband served about 750 customers (a “take rate” of about 12 percent of the 6,000 customers CMLP estimates could take service) and earned 2016 revenue of $560,000, slightly less than operating costs of $583,000. (In 2016 the division also paid debt service of $60,000, including a $50,000 payment on principal.)
  • CMLP’s fiber helped the town save $108,000 in annual police and school communications costs and generated $88,000 in leasing revenue from a private school and two telecom companies. 
  • CMLP is only in the early stages of realizing the benefits of its fiber. The utility is now engaged in studies on how to use the infrastructure to realize more cost savings, increase revenue, provide new services, and reduce emissions in the coming decades.
  • David Talbot, one of the report authors, also recently... Read more
Posted March 15, 2017 by htrostle

A new report from the National Digital Inclusion Alliance and Connect Your Community concludes that the telecom giant AT&T has redlined low-income neighborhoods in Cleveland. The company has cherry-picked higher-income neighborhoods for new technology investments and skipped over neighborhoods with high-proverty rates.

AT&T’s Digital Redlining, uses publicly available data from the FCC and the American Community Survey to expose how AT&T has failed to invest in low-income communities in Cleveland.

See With Your Own Eyes

Read the report and explore the interactive maps on digitalinclusion.org. The National Digital Inclusion Alliance and Connect Your Community spent six months uncovering how AT&T has systematically passed over communities with high poverty rates. The five maps paint a stark picture of the digital divide. 

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The extent of AT&T’s failure only came to light after the AT&T and DirecTV merger. As part of the merger, AT&T had to create an affordable Internet access program for low-income residents. The lowest speed tier in the program was 3 Megabits per second (Mbps) download for $5, but many low-income communities in Cleveland were considered ineligible; infrastructure in their communities only allowed access to speeds that maxed out at about 1.5 Mbps download. (Read more in "AT&T Gets Snagged in Giant Loophole Attempting to Avoid Merger Responsibility")

Public Data Can Share Some Insights 

The National Digital Inclusion Alliance and Connect Your Community noticed a pattern and began investigating. The FCC Form 477 data used in the report provides maximum speeds and technology by each census block, which typically overstates the quality of service actually available to households.

We've also used the FCC Form 477 data in our research and can attest to how... Read more

Posted March 14, 2017 by lgonzalez

As federal agencies examine the potential consequences if the AT&T - Time Warner merger is allowed to proceed, how we analyze antitrust also needs to be reevaluated. 

A new report from the Roosevelt Institute takes a closer look at how antitrust enforcement philosophy has changed, how that change has enabled our current state telecommunications in which a few large anticompetitive players control the market. The authors offer recommendations and cautionary predictions that may arise if we continue without reassessing how we scrutinize these large scale mergers.

Authors Marshall Steinbaum and Andrew Hwang complement each other with economic and legal approaches. Steinbaum is Senior Economist and Fellow at the Roosevelt Institute and has also written for Democracy, Boston Review, The American Prospect, and The New Republic. He earned his Ph.D. from the University of Chicago Economics Department in 2014. Hwang is a legal fellow at the Roosevelt Institute and has also been an associate at Simpson Thacher & Bartlett LLP, working on transactions involving securities issuance, mergers and acquisitions, and corporate lending. He received his J.D. from the Duke University School of Law in 2014 and B.A. in economics and political science from the University of Chicago in 2011.

The report notes how scrutiny of mergers has come to depend on the perceived harm the results will have on consumers, but such a narrow focus results in harming competition.

Instead, regulators should adopt a more holistic view of market power, specifically incorporating analysis of upstream impact of anticompetitive behaviors, especially those enabled by mergers. This would entail closer scrutiny of vertical mergers, positive price discrimination, and non-price-based schemes to profit excessively by withholding access to consumers.

Several specific recommendations caught our attention as particularly relevant approaches, including:

Regulators should utilize Section 2 of the Sherman Act to a greater degree by taking enforcement actions against antitrust violators, up to and including undoing previous mergers that have proven anti-competitive after the fact.

After all, we’ve learned that the Comcast NBCUniversal Merger completed in 2013 has resulted in anticompetitive behavior by Comcast, regardless of its promises to treat content providers other than its own... Read more

Posted January 24, 2017 by htrostle

In December 2016, the Free Press released the extensive report Digital Denied: The Impact of Systemic Racial Discrimination on Home-Internet Adoption. In the 225-page document, Free Press Research Director S. Derek Turner dove into the numbers on race and the digital divide

The report provides a qualitative analysis of the digital divide's disproportionate impact people of color. Turner provides a number of policy solutions addressing both home Internet access and mobile Internet access.

Home Internet Adoption: A Continuing Divide

The digital divide refers to the gap between those who have access to information technologies and those who do not. Analyzing both U.S. Census Bureau data and FCC deployment data, Turner found that:

While 81 percent of Whites and 83 percent of Asians have home internet (counting wired and wireless subscriptions alike as “home” access), only 70 percent of Hispanics, 68 percent of Blacks, 72 percent of American Indian/Alaska Natives, and 68 percent of Native Hawaiian/Pacific Islanders are connected at home.

Even after accounting for differences in income, education, age, geography, and job status, communities of color have not adopted high-speed Internet services at the same rate as White folks. There remained a gap of six to eight percent between Hispanic, Black, or Native American households and White households.

Mobile-Internet Adoption: Model for Possible Solutions

Turner, however, noted that mobile Internet adoption did not sustain this same rate of digital divide. In some cases, low-income households of color have equal or higher levels of adoption than low-income White households. Explaining the difference between the adoption rates for home Internet service and mobile Internet service, Turner credited the wireless marketplace’s competitive prices and the prepaid or resold services offered.

The report points to three policy goals that are further broken into several concrete actions that local, state, and federal officials can take.... Read more

Posted January 14, 2017 by htrostle

In December 2016, the Congressional Research Service office released two reports on federal funding programs to improve high-speed Internet access. One report focuses on Tribal lands, and the other report provides an overview of the digital divide in general.

Dollars for the Digital Divide

Researchers Lennard G. Kruger and Angele A. Gilroy collaborated on Broadband Internet Access and the Digital Divide: Federal Assistance Programs. Kruger is a specialist in Science and Technology Policy and Gilroy is a specialist in Telecommunications Policy. The report provides an overview of ongoing efforts, including recently enacted legislation.

Kruger and Gilroy define the digital divide as between those who have access and those who do not. In particular, they focus on the dynamic between urban and rural areas, especially with regard to different income levels. The researchers consolidate previously released information on the digital divide and provide an analysis of current programs, including grants through the Appalachian Regional Commission. The researchers conclude by detailing all recent legislation. Check out the report for more information.

Status of Tribal Broadband

Kruger also wrote Tribal Broadband: Status of Deployment and Federal Funding Programs. This report follows up the Government Accountability Office’s 2016 report, Additional Coordination and Performance Measurement Needed for High-Speed Internet Access Programs on Tribal Lands

Drawing on information from both the GAO’s report and the FCC 2016 Broadband Progress Report, Kruger relays key facts about Internet access and federal funding. In particular, Kruger notes in the report that there is no dedicated federal funding earmarked to improving Internet access on Tribal lands:

Tribal entities and projects are eligible for virtually all federal broadband programs. With a few exceptions, however, there are no carve-outs or dedicated funding streams specifically for tribal applicants or non-tribal... Read more

Posted January 5, 2017 by htrostle

To improve rural Internet access, the Georgia Joint House and Senate Study Committee on High Speed Broadband Communications Access for All Georgians recommends that Georgia enable municipal networks and empower rural electric cooperatives.

The committee recently released their report on potential solutions for the lack of rural connectivity. They held six public meetings over the course of four months in 2016, consulting with stakeholders and concerned citizens.

Support of Local Government Networks 

Specifically, the report recommended that the Georgia legislature:

“Reaffirm the state’s approval of competitive telecommunication markets by continuing to permit locally-owned and operated government broadband services”

In the economic development section of the report, they detailed the positive role of community networks and the challenges in finding financing.

The report pointed to the success of two community networks, Community Network Services (CNS) and ElbertonNet. ElbertonNet is the fifteen-year-old community network of Elberton, Georgia. The report praised the community network’s “tremendous public feedback” and “exceptional customer service.”

CNS is a regional network of eight rural communities in southern Georgia. We've introduced readers to CNS in the past and shared stories of how the network has helped create jobs, improved local STEM educational opportunities, and helped one of the communities it serves reduce taxes. Initially funded by a bank loan, the network contributes over $2 million into the local general fund.  

Several statements referred to the fact that the current situation... Read more

Posted November 29, 2016 by KateSvitavsky

The Federal Reserve is responsible for setting interest rates and executing monetary policy in the United States, but many people don’t realize that the agency also has a hand in community development. This summer, the Federal Reserve Bank of Dallas released a report, Closing the Digital Divide: A Framework for Meeting CRA Obligations, which includes information for banks about funding digital inclusion programs and community networks.

The report, published in July, states:

“Access to broadband has become essential to make progress in all areas of community development—education and workforce development, health, housing, small-business development and access to financial services.”

Closing the Digital Divide is important not only because it provides substantial information for banks, but also because it indicates federal support exists for community-based infrastructure improvements. The report discusses improving Internet access for low and moderate-income individuals and neighborhoods.

Using The Community Reinvestment Act To Improve Infrastructure

From the 1930 until the late 1970s, many banks denied lending to individuals and organizations based on their location. The practice is called “redlining” after the red ink that outlined low-income neighborhoods on a map, and was made illegal when Congress passed the Community Reinvestment Act (CRA) in 1977. Under the CRA, banks must to use the same evaluation criteria for all loan applicants regardless of the neighborhood they live in, which expands lending to include low and moderate-income (LMI) individuals. The Federal Reserve assesses banks’ performance under CRA guidelines, which bring about $100 million in capital to low and moderate income areas per year through various projects. Improving Internet access is an increasingly large portion of these initiatives.

In The Weeds

As part of the act, banks must “identify and invest in low and moderate-income communities.” Eligible activities include affordable housing, services geared toward LMI individuals, financing for certain small businesses and farms, and other revitalization efforts. Bringing broadband infrastructure to underserved communities qualifies as... Read more

Posted November 26, 2016 by lgonzalez

After months of planning, we’re excited to launch our new website design!

We still have daily news, a huge cache of resources, and the information you need to learn about community networks. We’ve updated our look and organized so everything is even more accessible. As you explore you may even find some information you never knew we had available at our former site.

Our search capability is not yet up and running and we don't yet have all our podcasts imported to the new site. We encourage you to explore and let us know what you think about the site so far. You can share your thoughts at broadband@muninetworks.org.

Enjoy and thanks for your continued support!

Firework pic courtesy of geralt via pixaby.

Posted November 15, 2016 by htrostle

Acadiana, the southern region of Louisiana, is seeing a resurgence of industry thanks in large part to it publicly owned fast, affordable, reliable network. Years ago, the city of Lafayette, Louisiana, built the LUS Fiber network to connect homes and business.

Now, LUS Fiber is helping to diversify Acadiana’s economy, which once almost exclusively relied on the oil industry. Fiber networks offer much potential for economic development. 

“The State of Business” in the Silicon Bayou

The October-November issue of the Acadiana Profile at MyNewOrleans.com ran an article on the changing landscape of Acadiana’s businesses. Author Kimberly Singletary provides an overview of three growing industries: technology, manufacturing, and healthcare. All three need access to reliable, high-speed connections.

Singletary spoke with One Acadiana, an economic development organization in Lafayette:

“We’ve had a long history of innovation in IT and software,” says Jason El Koubi, CEO of One Acadiana. “But it's still very much an emerging field.”

Due to what El Koubi describes as “almost a grassroots movement in cultivating IT over the years,” the Acadiana region enjoys a robust offering of internet services resulting in a competitive, cheap and extremely fast LUS Fiber network.

LUS Fiber offers affordable, high-speed connectivity to several software developers that have made Acadiana their new home. The network offers speeds of up to 2 Gigabits (2,000 Megabits per second). In 2014, LUS Fiber attracted three companies, bringing almost 1,000 jobs to the “Silicon Bayou.” Another company, Waitr, an Uber-like food delivery service, is planning to add an operations center to Lafayette, which will bring another 100 jobs to the community.

More Than Tech: Industries Need Connectivity

Better connectivity through municipal networks has also diversified other communities. For instance, the community network in Dublin, Ohio, helped attract ... Read more

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