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Benton Foundation Article Dives Into Upcoming FCC Decision and Section 706

Kevin Taglang, recently published an excellent explanatory post for the Benton Foundation entitled What Section 706 Means for Net Neutrality, Municipal Networks, and Universal Broadband. He provides just the right amount of detail to get one up top speed on the upcoming decision and why it promises to be so influential. Additionally, he summarizes many federal programs relating to Internet access.

We already know that February 26th will be an historic day in telecommunications. On that day, the FCC's decision on new network neutrality rules and municipal broadband networks has the potential to literally change millions of lives. The decision will impact education, economic development, jobs, healthcare, communications, utilities - you name it. 

Taglang fittingly describes the series of findings from the FCC as a three act play. Read the text of the play, anticipate the conflict, see how the characters clash, and you will be the dramaturge. 

Act I: The FCC Considers U.S. Broadband and Finds It Lacking:

In addition to other factors, the FCC looked at the way we defined broadband (4 Mbps/1 Mbps), what capacity is needed to align with the way households use broadband (as in multiple devices simultaneously), and how ISPs market their services (25 Mbps as a minimum downstream acceptable). 

Accessibility rates showed divergent results based on urban and rural geography. The agency reassessed what is needed in schools for students and staff. The result was a decision to redefine broadband as 25 Mbps/3 Mbps and, once the agency determined that, the landscape changed dramatically. In January, the FCC adopted the Broadband Progress Report for 2015 [PDF], which asked what is advanced telecommunications capability now and are all Americans able to access that capacity?

From the arcticle:

Given these gaps in availability, the FCC concluded that advanced telecommunications capability is not being deployed to all Americans in a reasonable and timely fashion. And, in light of this finding, the FCC must “take immediate action to accelerate deployment of such capability by removing barriers to infrastructure investment and by promoting competition in the telecommunications market.”

 

Act II: Major Federal Efforts to Expand the Reach of Broadband

Taglang documents the many programs, funds, orders, and initiatives at the federal level aimed at promoting broadband. The White House, the FCC, and the Departments of Agriculture and Commerce have been particularly active. Nevertheless, broadband in the USA is not moving fast enough.

 

Act III: Notice of Inquiry on Immediate Action to Accelerate Broadband Deployment

In addition to the progress Report, the FCC established a Notice of Inquiry to find ways to remove the barriers to infrastructure investment and promote competition. Taglang writes:

The FCC’s NOI asks for comment on additional actions it can take to increase competition, remove barriers to market entry or stimulate the offering of innovative services. For example, are there efforts in addition to those we have taken that would encourage providers to enter the market or expand their reach to unserved or underserved areas, including Tribal lands?

The FCC also seeks comment on how to address the disparity in broadband availability between Americans living in urban areas with those living in rural areas and Tribal lands. This gap, the FCC notes, is, by itself, the basis for a determination that broadband is not being deployed to all Americans in a reasonable and timely fashion.

Finally, the FCC asks if there are additional actions it could take to reduce the number of schools that lack high-capacity broadband.

With these three major acts in mind, the expected result will be a timely implementation of ubiquitous broadband in the U.S., writes Taglang. He is sensible, however:

There are no silver bullets or single efforts that can get us there on their own. It will take pragmatic policy choices and sustained policy attention in a variety of areas -- from new policies around lowering barriers to pole attachments, deployment of fiber, improved access to programming, access to spectrum, a vigorous competition policy agenda, and policies that continue to enable innovation in the content and services that broadband can deliver and that can transform the way we work, the way we live, and the way we learn. Ultimately, that is the challenge that is before us. And the reason that Congress gave us Section 706 in the first place.

Answering Questions About Title II and Munis - Community Broadband Bits Episode 138

As we near the FCC open meeting at the end of next week, when it will decide on both the Chattanooga and Wilson petitions regarding their wish to expand as well as a proposal to reclassify Internet access a Title II service in order to ensure it can maintain the same open Internet we have long loved. We have mostly focused on the muni petitions, but after hearing some concerns from some munis regarding Title II, we realized we have to delve into the Title II reclassification more deeply.

Enter Chris Lewis, VP of Government of Affairs for Public Knowledge. I've always enjoyed talking with Chris on various issues around telecom policy and we asked him to come on and answer some of the questions we have heard.

We talk about the prospects of rate regulation, unbundling, transparency requirements, and the process for filing complaints until Title II. Overall, our conclusion is that the rules as we understand them, are quite reasonable and should not pose a problem to munis that are already committed to providing a high quality service.

You can read a Fact Sheet about the proposed rules here.

Read the transcript from this episode here.

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

This show is 22 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

Listen to previous episodes here. You can can download this Mp3 file directly from here.

Thanks to Persson for the music, licensed using Creative Commons. The song is "Blues walk."

Boston Globe the Latest to Support Local Authority

Yet another major news outlet has endorsed the President's position in support of local telecommunications authority. On January 26th, the Boston Globe went on record to endorse the concept, urging the FCC and Congress to work together to ensure local communities have the right to make their own connecitvity decisions.

The Globe suggested that, rather than allowing the FCC to take the lead with the Wilson and Chattanooga petition decisions, federal lawmakers take action:

A better approach would be for Congress to settle the issue itself, by preventing states from interfering with cities and towns that want to start their own Internet services.

The Globe Editors note that rural areas are the hardest hit by large corporate provider indifference, that it is those same parties that drive the state barrier bills, and that, "This status quo is bad for customers everywhere."

Globe Editors get behind a bill recently introduced by Cory Booker, Claire McCaskill, and Ed Markey that wipes out state barriers in the 19 states where they exist and prevents state lawmakers from enacting new ones. The Globe acknowledges that the support is lopsided today...:

But this shouldn’t be a partisan issue, and it isn’t one on the local level. Red states like Georgia, Kentucky, Iowa, Oklahoma, and Utah all have successful municipal Internet programs. Politicians tempted by campaign contributions from the telecommunications lobby, or skeptical of any proposal backed by President Obama, should remember that consumer protection is an issue that voters of all stripes support.

Community Broadband Media Roundup - January 23

We continue to see reverberations from President Obama's speaking out in favor of municipal networks. The presidential nod sparked state lawmakers to propose bills, news organizations to write editorials, and to give communities a better sense of how they can take action locally.

As Claire Cain Miller with the New York Times wrote in her article for “The Upshot”:

“The goal is not to replace the big companies with small, locally run Internet providers. It is to give people more than one or two options for buying Internet – and spur everyone, including the incumbents, to offer more competitive service and pricing.”

Jeff Ward-Bailey reported on Obama’s interest in tech issues in the State of the Union, specifically the laws limiting local deployment of networks.

“Obama has said that he wants to end these laws, and the White House’s new broadband plan includes a program, BroadbandUSA, that will encourage communities to deploy their own high-speed networks. BroadbandUSA will offer guidance on planning, financing, and building municipal broadband networks, and even includes funding for “in-person technical assistance to communities.”

The always-worth-reading Harold Feld explained the significance of President Obama's short mention of Internet access in his address:

“Which brings me to the last point. Yes, the President is clearly signalling that Dems need to see investment in broadband infrastructure (including by local governments) and protecting the open Internet not as isolated issues or peripheral techie issues, but as part of a comprehensive plan to ensure that the United States has a robust 21st infrastructure necessary to support a prosperous nation with opportunity for all. At the same time, Republicans should stop thinking of this as “regulation of the Internet” and think of it in the same way we think of highway fund investment and maintaining public roads. This doesn’t have to be a partisan issue, and it didn’t use to be.”

Reactions from cities and news organizations around the country showed that people support the right to build networks for job creation, business development, education, and healthcare. 

Alex Keefe and Lynne Mccrea with Vermont Public Radio talked to Irv Thomas with central Vermont’s ECFiber for reactions to the president’s message. More than 30 percent of Vermonters did not have access to high download speeds in 2013 – that’s one of the highest percentages of any state in the nation. 

Community Broadband Efforts

Danielle Kehl and Patrick Lucey with the Open Technology Institute wrote about the significance of Obama’s announcement for other small cities that want to restore local authority to build networks: 

“The digital divide becomes even more pronounced when you compare access in urban and rural parts of America, or consider the fact that four out of five Americans who aren’t online live below the poverty line. A big part of the problem is competition: Most Americans live in areas where only a single provider offers truly high-speed connectivity (more than 25 megabits per second), and it often comes with a steep price tag.”  

Some states are wasting no time moving forward with their community Internet networks. Kudos to Sen. Cory Booker of New Jersey for his proposal. The Hill’s Mario Trujillo reports:

“Booker's legislation — the Community Broadband Act — would block any state "statute, regulation, or other legal requirement" that restricts cities from providing their own Internet network. His legislation to tweak the Telecommunications Act of 1996 will be introduced Thursday.”

Booker's office framed the issue as one that could help rural and low-income communities. At least 19 states around the country have laws on the books setting limits on the creation or expansion of municipal broadband networks. 

The state with some of the slowest Internet in the nation may have hope yet for high speed Internet access thanks to a huge push by state lawmakers. Maine lawmakers on both sides of the isle submitted a whopping 35 bills that could help the state make some serious moves up the list. Darren Fishell with Bangor Daily News covered the story.

“I think most people understand that in this day and age for us to be competitive, that’s one of the necessary tools,” [Rep. Norman] Higgins (a Republican) said, noting he’s found bipartisan support on the issue. “The question, I think becomes: How do we do it? And who does it?”

One of the key proposals is a change in definitions. Whit Richardson with The Kennebec Journal and Morning Sentinel writes that Maine’s broadband service authority is raising the standard of broadband from 1.5 Mbps to download and upload speeds of at least 10 Mbps. Currently just 20 percent of households there have access to those speeds. The new standard would mean about 80 percent of the state’s communities (up from just 5 percent) would be eligible for ConnectME funding and it be the most aggressive state in terms of requiring fast upload speeds - a boon to small businesses and people who work remotely.

But Broadband DSL Reports’ Karl Bode reports that the state may find they want to raise that bar even higher in coming months. He reports on Netflix CEO’s push for making 25 Mbps download the “new baseline.”

Another Minnesota broadband effort is nearing its financial goals. The Belle Plaine Herald report that RS Fiber’s 10 member cities re-committed to the fiber project this week. Backers are seeking another level of commitment before moving ahead with the sale of bonds in March. The first phase of building for the project is expected to begin in 2016.

Cleveland’s OneCommunity “Big Gig Challenge Grant” is going toward helping create a fiber network to connect several businesses, non-profits and the Cleveland Clinic. The West 25th Corridor project is earmarked to be municipally-led, community-wide fiber. 

“The impact of introducing fiber to this burgeoning district cannot be overstated,” according to OneCommunity CEO Lev Gonick. “Hospitals, industry and businesses of all sizes, regardless of their scope will benefit from the network. We are proud to be part of this major leap into the future as outlined by the West 25th Street Corridor Initiative.”

In Utah, UTOPIA is reaching a settlement that gives hope to the struggling network. Antone Clark with the Standard Examiner reported the good news for network, which had been running at a loss for several years. 

“Even as we speak, our revenue picture is frankly outstanding,” Paul Isaac, acting director of UTOPIA, told the Standard-Examiner recently when pressed on the operational status of the network as it heads into the 2015 year.”

Just “down the road” in San Francisco, you can access high speed Internet from all city parks, and many businesses.  Josh Harkinson with Motherboard reported on how the telecom industry has developed such a successful obstacle course for communities: 

“Like many cities, San Francisco already has a robust fiber network in place to serve government offices.  [Ron Vinson, the city's chief marketing officer] believes that the $1.7 million that the city has spent to outfit its network with public wifi (not including a $600,000 grant from Google) is totally worth it. "There's absolutely no downside being able to provide access to the internet, whether you are parking your car or waiting for a MUNI bus," he says. "It's one of those fundamental things. We fill potholes, we clean the streets, and yes, now we provide wifi. And our citizens expect that."

Seattleites hopes for a city-owned network were rekindled this week! KING5 News reported on a new group forming that will push for affordable Internet access across the city. If the group is successful, Seattle would be the largest city in the United States with a municipal network.

Missouri Considers Revoking Local Authority

Despite the positive news from the White House, another state— Missouri— will consider a bill that creates barriers for community broadband. Rep. Rocky Miller introduced the bill, Sean Buckley with Fierce Telecom.

"Miller's bill includes a provision that would require a town or city to make a majority vote to offer a "competitive service." If residents voted to build a community network, the municipality would not be able to use the revenue from other services like water and sewer to pay for the buildout of the network and services, which would create a challenge in being able to pay for the initial construction costs to extend services to homes and businesses."

Kansas City, Missouri, is concerned how the proposed legislation would stifle the torrent of tech startups and economic development activities that are tied to faster speeds. 

"[Communications litigation expert Robert] Cooper said that state laws that restrict municipal broadband deployment are "antithetical to those FCC mandates because they enshrine barriers to investment by local governments." There is "ample" evidence that advanced broadband capability is not being deployed in a reasonable and timely fashion."

New Article on Economic Development and Fiber: "The Killer App for Local Fiber Networks"

Time and again, we share economic development stories from communities that have invested in fiber networks. A new article by Jim Baller, Joanne Hovis, and Ashley Stelfox from the Coalition for Local Internet Choice (CLIC) and Masha Zager from Broadband Communities magazine examines the meaning of economic development and the connection to fiber infrastructure.

Economists, advocates, and policymakers grapple with how to scientifically measure the link between the two but:

As Graham Richard, former mayor of Fort Wayne, Ind., observed, “From the point of view of retaining and gaining jobs, I can give you example after example [of the impact of broadband]. … What I don’t have is a long term, double-blind study that says it was just broadband.” But, “as a leader, sometimes you go with your gut.”

In addition to presenting examples from a number of communities such as Chattanooga, Lafayette, and Santa Monica, the article nicely summarizes key information from recent reports on links between broadband and real estate value, household income, and local economic growth.

As the authors note:

Communities increasingly recognize that fiber networks also provide critical benefits for education, public safety, health care, transportation, energy, environmental protection, urban revitalization, government service and much more. But only in revitalizing and modernizing local economies and creating meaningful, well-paying jobs do community leaders, businesses, institutions and residents consistently find common ground. In short, economic development and job creation can fairly be called the “killer app” for local fiber networks.

Worth reading and sharing!

National Press Follows President Obama to Cedar Falls, Iowa

On January 14th, President Obama visited Cedar Falls, Iowa, to share his strategy to expand high-speed connectivity to more Americans, encourage competition, and galvanize economic development. Obama's plan centers around community networks and he announced that the next step will be eliminating barriers in 19 states that usurp local authority to invest in publicly owned infrastructure.

From his remarks [C-SPAN Video below]:

Today, I'm making my administration's position clear on community broadband. I'm saying I'm on the side of competition. And I'm on the side of small business owners... I'm on the side of students and schools. I believe that a community has the right to make its own choice and to provide its own broadband if it wants to. Nobody is going to force you to do it, but if you want to do it, if the community decides this is something that we want to do to give ourselves a competitive edge and to help our young people and our businesses, they should be able to do it.

The Obama Administration, through the Department of Commerce, recently sent a letter [PDF] to Chairman Wheeler to request the FCC use its authority to end state barriers that block local public investment. The Hill noted the letter and the President's speech together put gentle pressure on the FCC to take steps to restore local authority. The Hill also gave space to the cable industry, naturally opposed to restoring local authority after millions of lobbying dollars invested in passing anti-competitive legislation.

InfoWorld also pointed out cable industry opposition to the Obama proposal, noting that they were ready to mount a strong offense and will likely join Congressional Republicans to fight any roll-back of state barriers. A decision from the FCC on whether or not to change state laws in North Carolina and Tennessee is expected in February.

As for the incumbents, there was no love lost between the President and the big players, as Multichannel News reported:

He said in many places big companies are "doing everything they can to keep out new competitors."

…they were at the whim of whatever Internet service provider happened to be around, and and when they had problems they got stuck on hold watching a spinning icon, waiting and waiting and waiting and wondering why rates keep getting "jacked up." Ouch. 

Other national outlets that covered the speech included the New York Times, the Washington Post, Ars Technica, Fierce Telecom, and NexGov. We came across so many stories we stopped counting.

Local coverage included stories from the Sioux City Journal, the Quad City Times, the Gazette, and the Waterloo Cedar Falls Courier. Mayor Jon Crews told the Courier:

“This is good for attracting companies that have higher wages for technical positions,” Crews said. “Obviously to be recognized by Google and the president of the United States in two months time is pretty awesome.”

As the President noted in his speech, Google named Cedar Falls the best city in Iowa for e-commerce due to its municipal fiber optic network.

Marc Reifenrath, local business owner of a web design, development and digital strategy agency called Spinutech introduced the President:

In our early years it would have been easy to move our headquarters to another city, really anywhere. Thanks in part to its high speed internet, Cedar Falls has always made it easy for us to grow our business. Today, Spinutech has clients in all 50 states and eight countries. In talking with these clients, time and again it is proven just how fortunate we are.

Whether or not local authority is restored in the 19 states in question, it is important that local communities remember the role of vision, which the President pointed out in his speech:

Now, in Cedar Falls, things are different. About 20 years ago, in a visionary move ahead of its time, this city voted to add another option to the market and invest in a community broadband network. Really smart thing you guys did. It was a really smart thing you guys did. And you've managed it right here at Cedar Falls Utilities. And then a few years ago, you realized that customers were demanding more and more speed. All the movies, all the increased data, Instagram -- all this stuff suddenly is just being loaded up, and basically, you guys were like the captain in Jaws, where he said, “We're going to need a bigger boat.” 

 

A Transcript of the script is available at the C-SPAN video page in the transcript box below the video window.

President Obama Speaks Against Barriers to Community Networks

When we started to hear rumors that the White House was investigating community owned networks, we were excited but not sure what to expect. I have to admit that seeing President Obama - the President of the United States - saying that Cedar Falls was smart to invest in themselves was much more powerful than I ever expected (see the video below).'

President Obama will visit Cedar Falls on Wednesday to address his plans to increase access to affordable, high-speed broadband across the country. Tune in at 3:40 Eastern to the White House Briefing Room to watch the live event.

The efforts of so many people to legitimize community networks are now paying off. Belittled by the big cable companies and their paid experts, we certainly were not destined to reach this point. But we are here - and everyone now recognizes that local governments can play an important role in ensuring we all have great Internet access.

The White House has released a fact sheet with some information on what the Executive Branch will do to increase competition and restore local authority.

Laws in 19 states — some specifically written by special interests trying to stifle new competitors — have held back broadband access and, with it, economic opportunity. Today, President Obama is announcing a new effort to support local choice in broadband, formally opposing measures that limit the range of options available to communities to spur expanded local broadband infrastructure, including ownership of networks. As a first step, the Administration is filing a letter with the Federal Communications Commission (FCC) urging it to join this effort by addressing barriers inhibiting local communities from responding to the broadband needs of their citizens.

And the National Economic Council and Council of Economic Advisers have released a report discussing the important contributions of community owned networks [PDF]. You might see some familiar references in the report - we are excited to see our work contributing to national policy.

This is a great moment for everyone that has worked on these networks - from local government employees and elected officials to the activists and local business owners that have volunteered their time to make it happen in their community. This is a great moment for the principle of local self-reliance.

Video: 
See video

Network Neutrality - Warnings From Radio Regulation

Many of us in the public interest telecommunications sphere are excited that the FCC appears poised to reclassify Internet access, which seems a necessary first step of protecting the open Internet.

Though we often focus on the false claims of the self-interested cable and telephone lobbyists when criticizing those who oppose FCC action on this, a recent Smithsonian Magazine article is a reminder that we must be vigilant with how the FCC uses this power. Clive Thompson penned "Air Waves" for the October, 2014, issue. It offers some context from the history of radio to discuss regulation of communication technologies.

When groups like the Electronic Frontier Foundation and other pro-open Internet groups question an enhanced FCC role in protecting the open Internet, they are often motivated by the somewhat terrible record of the FCC and its precursor in balancing the speech rights of everyone vs a motivated and self-interested for-profit industry.

In 1927 Congress created the Federal Radio Commission, endowed with the power to assign wavelengths. It began aggressively doing so, booting hundreds of small stations off the air, to produce “clear channels” for the big firms—wide-open zones where they could broadcast with no interference.

Amateur time was over, as the FRC explicitly warned in a memo: “There is not room in the broadcast band for every school of thought, religious, political, social, and economic, each to have its separate broadcasting station, its mouthpiece in the ether.”

Using modern technology, there can be no doubt there is room in the broadcast for every school of thought - but we certainly have to be vigilant to ensure no current or future government agency turns the Internet into the morass of broadcast radio today. This goes both for the ways over-commercialization and consolidation has killed interesting content and the ways the FCC strictly polices some forms of offensive content (the famous seven dirty words) while ignoring blatantly racist or homophobic content. My view: the FCC should stay far from content and let households do their own filtering as necessary.

Community Broadband Media Roundup - December 12, 2014

This week in Community Broadband networks... partnerships, cooperatives, and going-it-alone. For a background in muni networks, check out this recent article from FiscalNote. The article highlights Kansas and Utah's fight for improving beyond the minimum speeds. 

Speaking of minimum, the FCC announced its new "rock bottom" for regulated broadband speeds. Ars Technica's Jon Brodkin reports that despite AT&T, Verizon, and the National Cable and Telecom Association's protests, ISPs that use government subsidies to build rural broadband networks must provide speeds of at least 10 Mbps for downloads.

Rural Americans should not be left behind those who live in big cities, the FCC announcement today said. "According to recent data, 99 percent of Americans living in urban areas have access to fixed broadband speeds of 10/1, which can accommodate more modern applications and uses. Moreover, the vast majority of urban households are able to subscribe to even faster service," the FCC said.

The FCC plans to offer nearly $1.8 billion a year to carriers willing to expand service to 5 million rural Americans. 

This is a step in the right direction, but we are alarmed to see a download:upload ratio of 10:1. People in rural areas need to upload as well as download - our comments to the FCC strongly recommended raising the upstream threshold as well and we are very disappointed to see that remain a pathetic 1 Mbps.

And, from TechDirt's own "who can you trust if you can't trust the phone company department," Karl Bode found that a study by the AT&T-funded Progressive Policy Institute concluded that if Title II regulations were passed, the nation would be "awash in $15 billion in various new Federal and State taxes and fees. Bode writes that the study cherry-picked and conflated data:

The reality the broadband industry doesn't want to acknowledge is that very little changes for it under Title II if carriers aren't engaged in bad behavior. The broadband industry is fighting Title II solely to protect potential revenues generated from abusing uncompetitive markets. That this self-serving behavior is being dressed up as concern about the size of your broadband bill is the industry's best comedic work to date.

Cities Pursuing Community Broadband

Nancy Scola reported on the growing collective of "Next Century Cities." 

[The group's] early expansion is a signal of what seems to be a shift in the way Americans are thinking about high-speed Internet access: the idea that cities will the battlegrounds for the playing out of the broadband debates. One effect of these cities working so closely with Google as it rolls out its fiber network in places like Kansas City and Austin is a realization that mayors can take broadband into their own hands -- whether that's through a municipal solution like Chattanooga's gigabit network or through partnering with traditional Internet service providers such as Comcast or Time Warner Cable.

Other partnerships are also moving muni networks forward

At the same time as the Next Century Cities announcement, the Department of Agriculture announced $190.5 million in grants and loans for rural broadband and telecommunications infrastructure.

"Modern telecommunications and broadband access is now as essential to the businesses and residents of rural America as electricity was in the 1930s," said Agriculture Secretary Tom Vilsack, in a USDA statement. The funding will go towards providing, “broadband in areas that lack it, help rural-serving public television stations begin using digital broadcasts and support other telecommunications infrastructure improvements."

Jason Meyers with LightReading explains why utility companies (like EPB in Chattanooga) are positioned so well to be home to gigabit networks.  

Several communities are considering local options for networks. Some are just in the earliest study phases: Medina County and Athens in Ohio and Walla Walla, Washington are among them. RS Fiber in Minnesota has approved its updated business plan and financial strategy, meaning it can move forward with its cooperative network, and several communities in Northeastern Oklahoma are pursuing a cooperative plan as well.

It looks like the push for local options in Colorado is having an affect on other communities. Aspen and Pitkin County have submitted requests for proposals-- perhaps inspired by Longmont, Boulder, and the rest of the communities we reported on after the November referenda.  

Meantime, Bruce Kushnick with the Huffington Post reported this week that communities all over the country have been paying for fiber infrastructure upgrades, but have seen almost none of the investment. 

Starting in 1991, the phone companies went state-to-state to get changes in state laws, known as "alternative regulations" to charge customers for the replacement of the copper wires that were part of the state-based utility, like Verizon New Jersey, with a fiber optic wire capable of 45 Mbps in both directions, the standard speed for broadband in 1992.

And though it varied by state, this fiber optic wiring was to be done everywhere -- urban, rural, and suburban, rich and poor communities and cities, and even the schools were to be wired in some states. All customers were paying for the upgrades of this future fiber optic broadband utility so they all deserved to be upgraded.

Check it out and see if your community is on the list. And if you think this isn't the first time you've heard about this Big Ripoff, you're right-- We interviewed him on Community Broadband Bits Episode 28

Net Neutrality

This week, New Jersey's Cory Booker and Maine's Angus King defended net neutrality on CNN. 

The Internet is one of the most powerful tools on the planet. Across the globe, millions of people connect every minute of every day to harness its wealth of information, exchange ideas in an open platform and foster the type of innovation and entrepreneurship that spurs economic growth.

And today, it's never been more at risk in the United States.

Washington Post's Brian Fung reported that there are hints that the telecom industry is preparing for a new Title II reclassification. Verizon's CFO Francis Shammo said, in a nutshell, that the company would do just fine if the FCC imposed the stricter regulations. 

"I mean to be real clear, I mean this does not influence the way we invest. I mean we're going to continue to invest in our networks and our platforms, both in Wireless and Wireline FiOS and where we need to. So nothing will influence that. I mean if you think about it, look, I mean we were born out of a highly regulated company, so we know how this operates.

Despite this very clear statement, we expect to see still more claims from groups like the AT&T puppet Progressive Policy Institute that Title II would somehow cause major carriers to invest even less in networks across the United States. Though, if the market were half as competitive as they claim, any firm that invested less would be in big trouble! How do we know when they are lying? Well, are their lips moving?

GAO Report Warns of Potential for ISPs to Abuse Data Caps

Last month, the U.S. Government Accountability Office (GAO) released a report warning of the possibility and potential consequences of ISPs instituting data caps in their fixed line plans. In effect, this could mean applying something like the tiered service charges based on usage levels that we see in the mobile sector to broadband connections in the home or office. But whereas the vast majority of Americans have a reasonable range of choice between several major and minor carriers for mobile service, the GAO notes that the same is not true in the market for broadband, which could lead to ISPs using data caps (or usage-based pricing (UBP) in their parlance) in various harmful ways:

...providers facing limited competition could use UBP [usage-based pricing] to increase profits, potentially resulting in negative effects, including increased prices, reductions in content accessed, and increased threats to network security.

The GAO has provided the FCC with a copy of its report, and urged that the agency take action on the issue, including systematically tracking information on how many consumers are impacted by fixed providers instituting data caps and developing a voluntary code of conduct for the industry. According to Ars Technica, the FCC has taken a skeptical stance on the issue, despite Chairman Tom Wheeler’s outspoken concerns on the lack of competition in the fixed broadband market. Pointing to the small number of consumer complaints on the issue so far, the FCC asserted that “it is unclear that any action is needed at this time.”

Usage caps do not just affect sophisticated users with bandwidth-intensive jobs or hobbies that require them to transfer large design files or generate and share multimedia content. This has the potential to affect kids and adults doing homework or taking classes online, people who hope to cut the cord from traditional television providers, and telecommuters. From the GAO study:

Participants also expressed concern about difficulty tracking the wide range of devices accessing their fixed data allowance and that fixed UBP may negatively affect students, people working from home, and those with lower socio-economic status. 

Perhaps just as importantly as the specific levels, the existence of a cap or usage-based pricing policy creates an atmosphere where people think of data as a finite resource that should be used only sparingly, even if they may not be directly affected by specific limits:

Participants exhibited confusion over data consumption—for example thinking that low-data activities like online shopping consumed large amounts of data. 

These kinds of policies are in direct contrast with the connectivity environment we should be working to create - plentiful, cheap bandwidth for as many people as possible.