Snapshot

Florida Legislature rewrites utility pole bill to include language backed by municipal electric utilities

North Carolina’s County Broadband Authority Act includes clause drawing criticism from electric co-ops

Oklahoma Governor signs mapping bill, vetoes measure adding Tribal representation to state broadband council

The State Scene

Florida

A Florida bill, which included provisions that would have forced Florida’s municipal electric utilities and their ratepayers to pay private Internet Service Providers’ utility pole make-ready costs, was significantly revised before passing the State House by a unanimous vote of 115-0 on April 28.

H.B. 1239, which no longer includes the make-ready costs provisions, initially read like a regulatory wishlist for incumbent cable monopolies until it was redrafted to become a legislative package aimed at improving broadband deployment across the state. The revised bill now heads to the State Gov. Ron DeSantis for approval.

The final version of the bill establishes additional duties for Florida’s Office of Broadband, creates a state broadband grant program, and requires the Office to conduct mapping of unserved and underserved areas of the state -- a significant deviation from the version that was first introduced in February.

The initial version was sponsored by the Florida Internet and Television Association, of which Charter and Comcast are members, capitol insiders noted. Proponents of the initial language argued that lowering the costs municipal electric utilities charge private ISPs for attaching to their utility poles was a necessary prerequisite to attract private investment in rural communities, and would have required electric utilities statewide to provide private ISPs with access to their poles at a capped rate. The stripped-out portion of the bill had also included tax exemptions on the majority of equipment private ISPs purchased.

As voters went to the polls to cast ballots in the 2020 Presidential election, in two major metropolitan areas residents overwhelmingly approved ballot questions to move forward on exploring how to expand broadband access in their respective cities.

In Chicago, nearly 90% of those who cast ballots said “yes” to a non-binding referendum question that asked: “Should the city of Chicago act to ensure that all the city's community areas have access to broadband Internet?" With 2,034 of 2,069 precincts counted, 772,235 voters out of 862,140 cast their ballots in favor of that question.

That vote came on the heels of the roll out of “Chicago Connected,” a new initiative to bring high-speed Internet service to 100,000 households that do not have reliable access within the nation’s third-largest school district.

Meanwhile, in Denver 219,435 voters, or 83.5% of the city’s electorate, cast ballots in favor of question 2H, which allows the city to opt out of the state’s 2005 state law referred to as SB 152. That law prevents municipalities from building or partnering for broadband networks. Approval of the ballot initiative also grants the city “the authority but not [the] obligation to provide high-speed Internet access." Two other Colorado communities – Berthoud and Englewood – also voted in favor of similar ballot questions, asking voters if they want to opt out of SB 152. In Berthoud, 77.3% of voters cast ballots in support of the question. In Englewood, the opt-out question passed with 79.4% of voters in favor, which will allow the city to provide Wi-Fi service in city facilities.

In the 15 years since SB 152 was passed 140 Colorado communities have opted out with resultant networks like Longmont’s...

Along the banks of the Columbia River, Multnomah County (pop. 813,000), Oregon is considering a publicly owned Fiber-to-the-Home (FTTH) network after being handed a study more than a year in the making. The report estimates that a countywide network reaching every home, business, and farm in a five-city area would cost just shy of $970 million, and bring with it a wealth of savings and other benefits to the community it serves.

Origins

The study has its origins in a 2017 push initiated by an advocacy group called Municipal Broadband PDX which has sought more affordable and equitable Internet access in the region. In 2018, the County Board of Commissioners agreed that it should be explored and approved the funding of a study, with the city of Portland and Multnomah County each contributing $100,000 and the remaining towns of Fairview, Gresham, Troutdale, and Wood Village joining the effort to collectively contribute an additional $50,000 for funding. Over the next year, CTC Technology and Energy conducted a comprehensive survey, analysis, and evaluation, and the results were delivered at the end of September.

The report offers good news: the majority of residents in Multnomah County want a publicly built and operated FTTH network, and it would be economically viable to provide symmetrical gigabit service to as many of the more than 320,000 households as want it for $80/month. At a projected 36% take rate on a 4% bond over a 20-year period, the network would cost somewhere in the neighborhood of $966 million, depending on a host of local and market factors, some of which are fixed and others subject to change. It would see net positive income by the end of its fourth year of operation, and see a total of more than $54 million in positive net income by the end of its 20-year depreciation period (a standard model for fiber infrastructure, though they often last longer). These numbers change when adjusting the take rate and interest rate, but in the vast majority of scenarios, building a community owned FTTH network in Multnomah County is feasible. 

Broadband in Multnomah County

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I have been tracking from afar local grassroots efforts in Cambridge, Massachusetts, to start a municipal broadband network for years. I've visited them locally and spoken to various people from citizens to elected officials about the different options. The following are my observations. I'm not trying to channel their thoughts on how to move forward.

Cambridge is a high-tech city with nearly ubiquitous coverage from Comcast, delivering more or less the same services they offer to millions of homes — which is too say mostly reliable and high-cost Internet access (that will be still higher cost next year and the next after that). In the case of Comcast, it comes with crippled upload speeds compared to fast download capacity. Customer service is . . . well, you do your best to never have to use it.

But with MIT and Harvard within its confines, many in Cambridge are well aware that Internet access can get so much better and not be mediated by a company willing to spend millions in D.C. to preserve its right to set up tollbooths for certain kinds of content if they so choose.

However, Cambridge is remarkably similar to Palo Alto, which is also home to high tech households that mostly use Comcast cable and sometimes have the option of AT&T fiber. And in both instances, there is a strong case for some kind of municipal network that would create more local Internet choice. Both appear to have significant support in the community for a public option. But both also have city staff that have decided to prevent any meaningful investment.

They have run into the challenge that Seattle also wrestled with. These high profile cities have refused to consider creative, incremental, and targeted efforts. Instead, they have focused almost entirely on the costs of duplicating Chattanooga or Wilson, where the community built the entire citywide at once with debt-financed capital.

In Cambridge, the city council is rebelling after having been stymied by a city manager that has successful resisted efforts to study municipal broadband for years.

City Manager DePasquale has consistently refused to act on municipal broadband despite a...