As we predicted, Time Warner Cable is pushing a new bill in North Carolina to limit competition and local authority to build broadband networks (Save NC Broadband is alive again). H129 purports to be An Act to Protect Jobs and Investment By Regulating Local Government Competition with Private Business - [download a PDF of the bill as introduced]. This bill is another example of state legislators refusing to allow communities to make their own decisions -- imposing a one-size-fits-all policy on communities ranging from the metro area of Charlotte to small communities on the coast and in the mountains. Many of the provisions in this bill apply tough constraints on the public sector that are not applied to incumbent providers, but this analysis focuses only on a few. Let's start with the title:

An Act to Protect Jobs and Investment by Regulating Local Government Competition with Private Business

There is no support anywhere in this bill to explain what the impact of community networks is on jobs. Nothing whatsoever. There is a claim that "the communications industry is an industry of economic growth and job creation," but ignores the modern reality that that the communications industry goes far beyond the private sector. In fact, the recent history of massive telecommunications providers is one of consolidation and layoffs. It is the small community owned networks that create jobs; larger firms are more likely to offshore or simply cut jobs. Certainly all businesses depend on communications to succeed. Unfortunately, they are often limited to very few choices because the of the problem of natural monopoly.

As we predicted, Time Warner Cable is pushing a new bill in North Carolina to limit competition and local authority to build broadband networks (Save NC Broadband is alive again). H129 purports to be An Act to Protect Jobs and Investment By Regulating Local Government Competition with Private Business - [download a PDF of the bill as introduced]. This bill is another example of state legislators refusing to allow communities to make their own decisions -- imposing a one-size-fits-all policy on communities ranging from the metro area of Charlotte to small communities on the coast and in the mountains. Many of the provisions in this bill apply tough constraints on the public sector that are not applied to incumbent providers, but this analysis focuses only on a few. Let's start with the title:

An Act to Protect Jobs and Investment by Regulating Local Government Competition with Private Business

There is no support anywhere in this bill to explain what the impact of community networks is on jobs. Nothing whatsoever. There is a claim that "the communications industry is an industry of economic growth and job creation," but ignores the modern reality that that the communications industry goes far beyond the private sector. In fact, the recent history of massive telecommunications providers is one of consolidation and layoffs. It is the small community owned networks that create jobs; larger firms are more likely to offshore or simply cut jobs. Certainly all businesses depend on communications to succeed. Unfortunately, they are often limited to very few choices because the of the problem of natural monopoly.

The Media and Democracy Coalition has released a short paper detailing the many ways in which cable and phone companies have failed America. These companies use their market power to gouge residents and businesses, putting a drag on our economy. Meanwhile, the biggest ones are massively profitable and refuse to invest in the networks necessary to keep America competitive with peer nations. We recently wrote about how privately owned networks tend to consolidate and reduce competition rather than reducing prices. The lesson is as clear as it has always been throughout human history: allowing a select few to control essential infrastructure is a recipe for economic calamity. From the paper:

It’s good for our economy when companies make money and hire workers. But while small businesses continue to struggle in this economy, the cable and phone companies achieved extremely healthy profit margins. If the Great Recession didn’t stop these ISPs from making big profits, how could they be hurt by sensible consumer protections to keep the net operating just like it always has?

Well, seeing as how seat belts destroyed the automobile industry... and then air bags also destroyed the automobile industry... and CAFE standards destroyed the automobile industry.... wait -- all of these predictions were false. Perhaps we should not base important policy decisions upon the dire predictions of self-interested parties who are obligated to put self-interest ahead of the public interest. I was saddened to see that the paper suggest "we need" the private companies to build these networks. Point of fact, not only do we not "need" them to do it, we "need" to wake up to the fact that even when they do the best they can, it is second best to networks built by those who put the public interest first. Compare the networks of communities like Salisbury, NC; Monticello, MN; Lafayette, LA; and Chattanooga, TN, to the joke AT&T calls U-Verse and the stronger offers of FiOS. The private sector cannot be trusted to build the infrastructure we need. Addendum: I should note that while infrastructure must be managed in the public interest, I do believe the private sector should have a strong role as service providers operating on top of an open access platform.

The Media and Democracy Coalition has released a short paper detailing the many ways in which cable and phone companies have failed America. These companies use their market power to gouge residents and businesses, putting a drag on our economy. Meanwhile, the biggest ones are massively profitable and refuse to invest in the networks necessary to keep America competitive with peer nations. We recently wrote about how privately owned networks tend to consolidate and reduce competition rather than reducing prices. The lesson is as clear as it has always been throughout human history: allowing a select few to control essential infrastructure is a recipe for economic calamity. From the paper:

It’s good for our economy when companies make money and hire workers. But while small businesses continue to struggle in this economy, the cable and phone companies achieved extremely healthy profit margins. If the Great Recession didn’t stop these ISPs from making big profits, how could they be hurt by sensible consumer protections to keep the net operating just like it always has?

Well, seeing as how seat belts destroyed the automobile industry... and then air bags also destroyed the automobile industry... and CAFE standards destroyed the automobile industry.... wait -- all of these predictions were false. Perhaps we should not base important policy decisions upon the dire predictions of self-interested parties who are obligated to put self-interest ahead of the public interest. I was saddened to see that the paper suggest "we need" the private companies to build these networks. Point of fact, not only do we not "need" them to do it, we "need" to wake up to the fact that even when they do the best they can, it is second best to networks built by those who put the public interest first. Compare the networks of communities like Salisbury, NC; Monticello, MN; Lafayette, LA; and Chattanooga, TN, to the joke AT&T calls U-Verse and the stronger offers of FiOS. The private sector cannot be trusted to build the infrastructure we need. Addendum: I should note that while infrastructure must be managed in the public interest, I do believe the private sector should have a strong role as service providers operating on top of an open access platform.

The Media and Democracy Coalition has released a short paper detailing the many ways in which cable and phone companies have failed America. These companies use their market power to gouge residents and businesses, putting a drag on our economy. Meanwhile, the biggest ones are massively profitable and refuse to invest in the networks necessary to keep America competitive with peer nations. We recently wrote about how privately owned networks tend to consolidate and reduce competition rather than reducing prices. The lesson is as clear as it has always been throughout human history: allowing a select few to control essential infrastructure is a recipe for economic calamity. From the paper:

It’s good for our economy when companies make money and hire workers. But while small businesses continue to struggle in this economy, the cable and phone companies achieved extremely healthy profit margins. If the Great Recession didn’t stop these ISPs from making big profits, how could they be hurt by sensible consumer protections to keep the net operating just like it always has?

Well, seeing as how seat belts destroyed the automobile industry... and then air bags also destroyed the automobile industry... and CAFE standards destroyed the automobile industry.... wait -- all of these predictions were false. Perhaps we should not base important policy decisions upon the dire predictions of self-interested parties who are obligated to put self-interest ahead of the public interest. I was saddened to see that the paper suggest "we need" the private companies to build these networks. Point of fact, not only do we not "need" them to do it, we "need" to wake up to the fact that even when they do the best they can, it is second best to networks built by those who put the public interest first. Compare the networks of communities like Salisbury, NC; Monticello, MN; Lafayette, LA; and Chattanooga, TN, to the joke AT&T calls U-Verse and the stronger offers of FiOS. The private sector cannot be trusted to build the infrastructure we need. Addendum: I should note that while infrastructure must be managed in the public interest, I do believe the private sector should have a strong role as service providers operating on top of an open access platform.

The Media and Democracy Coalition has released a short paper detailing the many ways in which cable and phone companies have failed America. These companies use their market power to gouge residents and businesses, putting a drag on our economy. Meanwhile, the biggest ones are massively profitable and refuse to invest in the networks necessary to keep America competitive with peer nations. We recently wrote about how privately owned networks tend to consolidate and reduce competition rather than reducing prices. The lesson is as clear as it has always been throughout human history: allowing a select few to control essential infrastructure is a recipe for economic calamity. From the paper:

It’s good for our economy when companies make money and hire workers. But while small businesses continue to struggle in this economy, the cable and phone companies achieved extremely healthy profit margins. If the Great Recession didn’t stop these ISPs from making big profits, how could they be hurt by sensible consumer protections to keep the net operating just like it always has?

Well, seeing as how seat belts destroyed the automobile industry... and then air bags also destroyed the automobile industry... and CAFE standards destroyed the automobile industry.... wait -- all of these predictions were false. Perhaps we should not base important policy decisions upon the dire predictions of self-interested parties who are obligated to put self-interest ahead of the public interest. I was saddened to see that the paper suggest "we need" the private companies to build these networks. Point of fact, not only do we not "need" them to do it, we "need" to wake up to the fact that even when they do the best they can, it is second best to networks built by those who put the public interest first. Compare the networks of communities like Salisbury, NC; Monticello, MN; Lafayette, LA; and Chattanooga, TN, to the joke AT&T calls U-Verse and the stronger offers of FiOS. The private sector cannot be trusted to build the infrastructure we need. Addendum: I should note that while infrastructure must be managed in the public interest, I do believe the private sector should have a strong role as service providers operating on top of an open access platform.

The Media and Democracy Coalition has released a short paper detailing the many ways in which cable and phone companies have failed America. These companies use their market power to gouge residents and businesses, putting a drag on our economy. Meanwhile, the biggest ones are massively profitable and refuse to invest in the networks necessary to keep America competitive with peer nations. We recently wrote about how privately owned networks tend to consolidate and reduce competition rather than reducing prices. The lesson is as clear as it has always been throughout human history: allowing a select few to control essential infrastructure is a recipe for economic calamity. From the paper:

It’s good for our economy when companies make money and hire workers. But while small businesses continue to struggle in this economy, the cable and phone companies achieved extremely healthy profit margins. If the Great Recession didn’t stop these ISPs from making big profits, how could they be hurt by sensible consumer protections to keep the net operating just like it always has?

Well, seeing as how seat belts destroyed the automobile industry... and then air bags also destroyed the automobile industry... and CAFE standards destroyed the automobile industry.... wait -- all of these predictions were false. Perhaps we should not base important policy decisions upon the dire predictions of self-interested parties who are obligated to put self-interest ahead of the public interest. I was saddened to see that the paper suggest "we need" the private companies to build these networks. Point of fact, not only do we not "need" them to do it, we "need" to wake up to the fact that even when they do the best they can, it is second best to networks built by those who put the public interest first. Compare the networks of communities like Salisbury, NC; Monticello, MN; Lafayette, LA; and Chattanooga, TN, to the joke AT&T calls U-Verse and the stronger offers of FiOS. The private sector cannot be trusted to build the infrastructure we need. Addendum: I should note that while infrastructure must be managed in the public interest, I do believe the private sector should have a strong role as service providers operating on top of an open access platform.

The Media and Democracy Coalition has released a short paper detailing the many ways in which cable and phone companies have failed America. These companies use their market power to gouge residents and businesses, putting a drag on our economy. Meanwhile, the biggest ones are massively profitable and refuse to invest in the networks necessary to keep America competitive with peer nations. We recently wrote about how privately owned networks tend to consolidate and reduce competition rather than reducing prices. The lesson is as clear as it has always been throughout human history: allowing a select few to control essential infrastructure is a recipe for economic calamity. From the paper:

It’s good for our economy when companies make money and hire workers. But while small businesses continue to struggle in this economy, the cable and phone companies achieved extremely healthy profit margins. If the Great Recession didn’t stop these ISPs from making big profits, how could they be hurt by sensible consumer protections to keep the net operating just like it always has?

Well, seeing as how seat belts destroyed the automobile industry... and then air bags also destroyed the automobile industry... and CAFE standards destroyed the automobile industry.... wait -- all of these predictions were false. Perhaps we should not base important policy decisions upon the dire predictions of self-interested parties who are obligated to put self-interest ahead of the public interest. I was saddened to see that the paper suggest "we need" the private companies to build these networks. Point of fact, not only do we not "need" them to do it, we "need" to wake up to the fact that even when they do the best they can, it is second best to networks built by those who put the public interest first. Compare the networks of communities like Salisbury, NC; Monticello, MN; Lafayette, LA; and Chattanooga, TN, to the joke AT&T calls U-Verse and the stronger offers of FiOS. The private sector cannot be trusted to build the infrastructure we need. Addendum: I should note that while infrastructure must be managed in the public interest, I do believe the private sector should have a strong role as service providers operating on top of an open access platform.

A few weeks ago, the Herald Tribune ran a number of articles about broadband by Michael Pollick and Doug Sword that discussed some community fiber networks and efforts by Counties in Florida to build their own fiber-optic networks. The first, "Martin County opting to put lines place," covers the familiar story of a local government that decides to stop getting fleeced by an incumbent (in this case, Comcast) and instead build their own network to ensure higher capacity at lower prices and often much greater reliability.

"We decided for the kind of money these people are asking us, we would be better off doing this on our own," said Kevin Kryzda, the county's chief information officer. "That is different from anybody else. And then we said we would like to do a loose association to provide broadband to the community while we are spending the money to build this network anyway. That was unique, too." The new project will use a contractor to build a fiber network throughout the county and a tiny rural phone company willing to foot part of the bill in return for permission to use the network to grab customers of broadband service. The combined public-private network would not only connect the sheriff's office, county administration, schools and hospitals, but also would use existing rights of ways along major highways to run through Martin's commercial corridors.

Michael Pollick correctly notes that Florida is one of the 18 states that preempt local authority to build broadband maps. However, they incorrectly believe that Martin County is unique in its approach.

A few weeks ago, the Herald Tribune ran a number of articles about broadband by Michael Pollick and Doug Sword that discussed some community fiber networks and efforts by Counties in Florida to build their own fiber-optic networks. The first, "Martin County opting to put lines place," covers the familiar story of a local government that decides to stop getting fleeced by an incumbent (in this case, Comcast) and instead build their own network to ensure higher capacity at lower prices and often much greater reliability.

"We decided for the kind of money these people are asking us, we would be better off doing this on our own," said Kevin Kryzda, the county's chief information officer. "That is different from anybody else. And then we said we would like to do a loose association to provide broadband to the community while we are spending the money to build this network anyway. That was unique, too." The new project will use a contractor to build a fiber network throughout the county and a tiny rural phone company willing to foot part of the bill in return for permission to use the network to grab customers of broadband service. The combined public-private network would not only connect the sheriff's office, county administration, schools and hospitals, but also would use existing rights of ways along major highways to run through Martin's commercial corridors.

Michael Pollick correctly notes that Florida is one of the 18 states that preempt local authority to build broadband maps. However, they incorrectly believe that Martin County is unique in its approach.