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San Francisco Passes Ordinance: Tenants Have ISP Choice At Last

San Francisco multi-occupancy building tenants will no longer be stuck with the Internet Service Provider most friendly with the landlord. On December 13th, the Board of Supervisors unanimously passed an ordinance to ensure that competing ISPs have reasonable access to buildings to offer competing services and give tenants a choice.

Ensuring Choice In Apartments, Condos, Businesses

Earlier this month, Mark Farrell from the city’s Board of Supervisors spoke with Christopher about his proposed legislation during episode #231 of the Community Broadband Bits podcast. He described how city leaders began digging into ways to improve local connectivity and uncovered a problem that was much larger than they had anticipated. While federal law prohibits property owners from forcing tenants to sign up with one particular provider, many have effectively done so by preventing competing providers from installing wiring or antennas in or on their buildings. In exchange for limiting access to the competition, building owners and landlords take kickbacks from the ISP willing to make the best offer.

The new ordinance makes such agreements between building owners or landlords and ISPs fruitless because they can no longer block competing providers from their buildings. Webpass, a fixed wireless provider focusing on serving multi-dwelling unit (MDU) tenants, has been trying to get a foothold in the city but the ordinance has proven to be a difficult barrier. A local providers, Monkeybrains, raised the capital through crowdfunding to begin a fixed wireless service, but without the ordinance their reach is limited.

New Choices For Tens Of Thousands

In an urban setting like San Francisco, eliminating the ability for landlords and ISPs to lock tenants into a take-it-or-leave-it scenario will create choice for a huge swath of people:

San Francisco Proposal Aims At Giving Multi-Tenants Access Choice Of ISPs

If San Francisco Board of Supervisor Mark Farrell gets his way, tenants in multiple-occupancy buildings will have a greater opportunity to choose their Internet Service Providers. 

In October, Farrell introduced a proposed ordinance that would require owners of multi-tenant residential and commercial properties to give building access to all state-licensed ISPs. 

Choice Effectively Denied 

Farrell’s proposal comes amidst reports of tenants denied access to ISPs of their choice.

According to a legislative digest of the proposed ordinance, property owners are not legally allowed to force tenants to sign up with one provider, but by limiting access their building to install fiber or antennas, they prevent their renters from choosing the provider they want:

"[M]any occupants of residential and commercial multiple occupancy buildings are unable to choose between service providers because their buildings property owners allow only one provider to install the facilities and equipment necessary to provide services to occupants..."

The San Francisco Chronicle reports: 

“The reality in San Francisco is that tens of thousands of residents have been denied access to different Internet service providers,” Farrell said. “I fundamentally believe competition is a good thing that will ultimately drive prices down and improve Internet access across all of San Francisco.”  

Charles Barr, founder of up and coming fixed wireless provider Webpass, said owners block their access to approximately 400 large apartment buildings in the city. Google Fiber recently acquired Webpass.

The Proposed Ordinance  

Farrell’s proposed ordinance would guarantee:

Google Fiber Pauses - But No One Else Should

Google Fiber has finally announced its plans for the future after weeks of dramatic speculation that it will lay off half its workforce and give up on fiber-optics entirely. Google has now confirmed our expectations: they are pausing new Google Fiber cities, continuing to expand within those where they have a presence, and focusing on approaches that will offer a better return on investment in the short term.

Nothing Worth Doing Is Easy

In short, Google has found it more difficult than they anticipated to deploy rapidly and at low cost. And in discussions with various people, we think it can be summed up in this way: building fiber-optic networks is challenging and incumbents have an arsenal of dirty tricks to make it even more so, especially by slowing down access to poles.

That said, Google is not abandoning its efforts to drive better Internet access across the country. In the short term, people living in modern apartment buildings and condos will be the greatest beneficiary as Google takes the Webpass model and expands it to more cities. But those that hoped (or feared) Google would rapidly build Fiber-to-the-Home (FTTH) across the country are likely disappointed (or slightly relieved, if they happen to be big incumbent providers). 

This is a good moment to talk about the lessons learned from Google Fiber and what we think communities should be thinking about. 

Let's start by noting something we have often said: Google Fiber and its larger "access" approach have been incredibly beneficial for everyone except the big monopolists. Its investments led to far more media coverage of Internet access issues and made local leaders better understand what would be possible after we dismantle the cable broadband monopoly. 

Benoit Felton, a sharp international telecommunications analyst wrote a very good summary of Google Fiber titled Salvaging Google Fiber's Achievements. Some of my thoughts below overlap his - but his piece touches on matters I won’t address, so please check out his analysis.

I want to focus on a few key points.

Discussing (Ranting) Consolidation - Community Broadband Bits Episode 209

In celebration of Independence Day, we are focused this week on consolidation and dependence. At the Institute for Local Self-Reliance, we are very focused on independence and believe that the consolidation in the telecommunications industry threatens the independence of communities. We doubt that Comcast or AT&T executives could locate most of the communities they serve on a blank map - and that impacts their investment decisions that threaten the future of communities. So Lisa Gonzalez and I talk about consolidation in the wake of Google buying Webpass and UC2B's partner iTV-3 selling out to Countrywide Broadband. And we talk about why Westminster's model of public-private partnership is preferable to that of UC2B. We also discuss where consolidation may not be harmful and how the FCC's order approving the Charter takeover of Time Warner Cable will actually result in much more consolidation rather than new competition.

This show is 18 minutes long and can be played on this page or via Apple Podcasts or the tool of your choice using this feed

Transcript below. 

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

Listen to other episodes here or view all episodes in our index. See other podcasts from the Institute for Local Self-Reliance here.

Thanks to Fifes and Drums of the Old Barracks for the music, licensed using Creative Commons. The song is "Cork Hornpipe."