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GovTech Reports on Broadband Legislation in Five States
Broadband is a topic of interest in several state legislative chambers this session. In a recent Government Technology article, Brian Heaton focused on five states where community broadband is particularly contentious. In some cases, legislators want to expand opportunities while others seek to limit local authority.
We introduced you to the Kansas anti-competition bill in January. The bill was pulled back this year but could be back next year. When the business community learned about the potential effects of SB 304, they expressed their dismay. From the article:
Eleven companies and trade organizations – including Google – signed a letter opposing SB 304 as a “job-killer” that restricts communications services expansion in the U.S.
Minnesota's leaders introduced legislation to expand broadband. Efforts include financial investment earmarked for infrastructure:
Senate File 2056 – referred to as the Border-to-Border Infrastructure Program – would take $100 million from the state's general fund to be applied to broadband projects. A companion bill in the House, HF 2615 was also introduced.
As we reported, there is bipartisan support for the bill in the House, but the Senate and Governor have not prioritized SF 2056.
New Hampshire's legislature wants to open up bonding authority for local communities that need help:
Utah Senate Bill Attacking UTOPIA on the Fast Track: SB190
UPDATE: According to Pete Ashdown, the amendment has been pulled. Stay vigilant, these things rarely just go away.
We reported earlier this month that UTOPIA was once again facing legislative attack at the state level in the form of HB60. While the House has focused on other issues, the Utah Senate is launching its own attack. SB190 has also put UTOPIA in the crosshairs and events are happening quickly. Time to contact your elected officials, Utah!
According to Jesse Harris at FreeUTOPIA.org, SB190 as originally crafted, could have curtailed a pending deal between UTOPIA and Australian firm Macquierie. From Harris' February 19 story on the bill:
It appears the legislature is determined to chase off a $300M investment in our state’s broadband infrastructure to appease CenturyLink. Sen. John Valentine is running SB190 which has been very specifically crafted to prevent any UTOPIA city from using the same utility fee that Provo has to pay down the bonds. Moving to a utility fee to provide transparency on the cost of the UTOPIA bonds has been a key part of the Macquarie discussions so far, so it could very well put the deal in jeopardy.
Since its introduction, the bill was heard in the Senate Business and Labor committee. There was broad and fierce opposition and Sen. John Valentine, the sponsor of the bill, amended it. The changes made the bill palatable to Macquarie and it passed through committee to the Senate Floor on Feb. 24.
After the bill passed through the committee, Valentine introduced a floor amendment that will prevent new cities from joining the network. Harris now reports:
Fork in the Road For UTOPIA: Forward or Backward? Community Broadband Bits Episode #85
UTOPIA Again Targeted by Bill in State Legislature
Kansas is not the only place where the cable and telecom lobbies are attacking publicly owned networks. Jesse Harris from FreeUtopia.org reports that State Rep. Curt Webb has introduced HB60, aimed at UTOPIA. From the story:
As the bill is currently written, UTOPIA wouldn’t just be prevented from building to people willing to pay for it. They could also be required to shut down any existing services and be prohibited from maintaining their backbone that links cities together. It would effectively be a death sentence on any network that isn’t entirely within member cities AND can connect to an exchange point to reach ISPs and the rest of the Internet.
FreeUtopia also reports that the bill does not affect cable, DSL, wireless, or any other technology. Harris writes:
Naturally, I had to follow the money and it explains a lot. Rep. Webb has taken contributions from CenturyLink and the Utah Rural Telecom Association.
As an observation, I take issue with the state's fiscal note on HB60. It reports that enactment of the bill "likely will not result in direct, measurable costs for local governments." The fiscal note also concludes that "enactment of this bill likely will not result in direct, measurable expenditures by Utah residents or businesses."
If this bill ends UTOPIA in certain areas, affected government, residential, and business customers will lose the competitive rates they now enjoy - direct and measurable! See Pete Ashdown's comment on Jesse's story - he runs XMission, a beloved local ISP that uses UTOPIA to connect to some subscribers.
This bill is another example of how cable and telephone company lobbyists are not just trying to shut down municipal networks, but any possible public private partnerships. This is emphatically not about tax dollars, as Jesse rightly notes:
UTPOIA The Latest Network to Offer Super Affordable Gigabit
In addition to the exceptional speeds, residential subscribers on the network will also be able to choose their provider based on the services and pricing that best meets their individual needs, explained Gary Jones, UTOPIA chief operating officer.“More residents in Utah have access and the ability to connect to the digital world at the speed of light than anywhere else in the country, and the prices and services being offered by our ISPs make it affordable for many more customers,” Jones said. “This new price is … not much more than most phone and cable companies charge for their basic 8 megabits per second service.”
"As the Internet becomes an essential conduit for work, school and entertainment, gigabit availability is essential,” said Pete Ashdown, CEO of XMission. “Only fiber allows this kind of bandwidth and speed."
Spanish Fork Discusses Stunning Success - Community Broadband Bits Podcast #60
Xmission Increases Speeds for Free in the Land of UTOPIA
Customers subscribing to Xmission via UTOPIA just received a free upgrade. Subscribers to the 50 Mbps service are now receiving 100 Mbps at no extra charge. The Free UTOPIA blog ran the announcement along with this tip:
One thing to note is that if you aren’t seeing those speeds, you may need to upgrade your router. Most routers, even newer ones, don’t include a 1Gbps WAN port which often serves as a bottleneck. Older 802.11 a/b/g routers also create choke points on the wireless side. All said, that’s a pretty nice problem to have, isn’t it?
Indeed it is...
We reported on Xmission's decision to keep customer data private and we interviewed Pete Ashdown, founder of Xmission, and Todd Marriott from UTOPIA in Episode #3 of the Broadband Bits podcast. The two talked with Chris Mitchell about the services they provide and some of the challenges they have faced as a publicly owned network and a local provider.
This announcement is no surprise for our readers. We often report on free or modestly priced speed increases from publicly owned networks and providers that deliver services via publicly owned infrastructure. In contrast, the news is regularly speckled with stories about increased rates with no increase in speeds from the large national providers.
Google Buys Provo Community-Owned Network
Provo started building their own municipal network in 2004 because they decided that providing access to high speed connectivity was important to their community’s future. In 2011, they started looking for a partner that could acquire their network and deliver an affordable service for Provoans. We’re committed to keeping their vision alive, and, if the deal is approved and the acquisition closes, we’d offer our Free Internet service (5 Mbps speeds) to every home along the existing Provo network, for a $30 activation fee and no monthly charge for at least seven years. We would also offer Google Fiber Gigabit Internet—up to 100x faster Internet than today’s average broadband speeds—and the option for Google Fiber TV service with hundreds of your favorite channels. We’d also provide free Gigabit Internet service to 25 local public institutions like schools, hospitals and libraries.
American Crafts' New Muse is UTOPIA
If you are a 21st century crafter, you are probably prolific at finding inspiration online. You may be familiar with American Crafts of Orem for ideas or products. The company, founded in 1994, is now a customer of UTOPIA and reports significant bandwidth improvement after the switch from old T-1 connections. From the UTPOIA blog:
With a robust e-commerce presence, American Crafts has to rely on its network. According to Kris Barlow, IT Manager, before switching to UTOPIA, the firm used a single T-1 connection, along with two additional T-1 connections to connect a remote warehouse in Provo. “Our Provo location was using an iProvo connection at the time. By switching to UTOPIA, we could use a single fiber connection to our headquarters building which provided much faster Internet speeds—up to 10 Mbps on our service plan, as compared with traditional T-1 speeds.”
Barlow also notes how the switch has allowed the company to consolidate headquarters and warehouse locations. Reliablity has also been a key improvement:
“In the three years that we've had UTOPIA service, I can remember only two or three service interruptions, all of which were resolved within the same day and were not related specifically to our connection,” he says. “Using the UTOPIA network has allowed us to drastically reduce the fee that we pay for Internet service when compared to the T-1 connections we were previously using, all while also drastically increasing the bandwidth of the connection.”
Because UTOPIA is open access, the company could keep the same phone provider, as it is an ISP on the UTOPIA network. The switch was seamless:
“This allowed for us to simply add the UTOPIA service to our current provider’s bill and allowed us to avoid the hassle of establishing a new account with a new provider,” Barlow says.
UTOPIA, For Better And Worse, Profiled
Since 2008, we have followed and reported on the peaks and valleys that is UTOPIA. Recently, the Salt Lake Tribune ran a series on the regional network. The coverage includes a sampling of the bitter and sweet of the complex relationship between the pioneering network, the state, and the customers it serves.
As many of our readers know, UTOPIA is mired in debt and endless political controversy as Comcast and CenturyLink fund "think tanks" to attack it. Tony Semerad from the Tribune talked to our own Chris Mitchell:
"When you build a network like this, it takes a minimum of several years of spending a lot of money before you start to get it back from your customers,’’ said Christopher Mitchell
As Christopher goes on to note, a large debt from the beginning to create an open access network is not a favorable situation. Additionally, past management made choices that still negatively impact the network. Constricting legislation at the state level prevents the network from expanding to a more profitable retail market, weakening it even further. Also from the article:
State law requires UTOPIA to operate as a wholesaler, a limitation conceived at UTOPIA’s inception when telecommunications giants such as CenturyLink and Comcast, now called Xfinity, grew wary of plans by Spanish Fork and Provo to get into the cable television business and lobbied state lawmakers for protections.
Some communities express derision at the situations they face regarding UTOPIA, having been left with debt and not yet received the ubiquitous access they anticipated. Some communities, who are still waiting for better subscriber numbers, already see improved economic development and remain patient. Connected communities vary in their satisfaction and level of support: