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Yesterday, Colorado voters in three counties and five municipalities were asked whether they want to restore local government authority to build or partner for broadband networks. A 2005 law, lobbied for heavily by incumbents, prevents local municipalities from offering telecommunications services, even if they already have the infrastructure in place.
According to the law, local communities can ask voters to reclaim local authority to establish a telecommunications utility. We have seen Longmont, Montrose, and Centennial take action in prior years. In Longmont, the community has successfully established a telecommunications utility and the community is loving it.
An interesting wrinkle in Colorado is the wide support across the state - communities that vote heavily for Democrats supported local authority for municipal networks in similar numbers that those in areas voting heavily for Republicans.
In Yuma County, where approximately 85% of voters supported the GOP Senate candidate, the measure to reclaim local authority passed with 72% of the vote. Yuma County overwhelmingly voted for the Republican candidate for Governor and every race in Yuma County went to a Republican candidate. The cities of Yuma and Wray within the County also had their own ballot initiatives to reclaim local authority; those ballot measures also passed by 72%.
Rio Blanco County's numbers were very similar to those in Yuma County. The only exception was that their ballot question 1A on reclaiming local authority passed with 76%. Again, every race went to a Republican candidate in Rio Blanco County.
Two more Colorado communities will be deciding whether or not to reclaim local telecommunications authority this fall. Colorado State Bill 152 took away local authority in 2005 but voters in several areas of the state are taking it back. Readers will recall Centennial voters passed the measure 3:1 last fall and Montrose voters approved a similar measure in the spring.
Boulder is home to the Boulder Research and Administration Network (BRAN), a fiber network that currently serves the city, the University of Colorado, the U.S. Department of Commerce, and the University Corporation for Atmospheric Research. A conduit network is already in place and an I-Net connects dozens of municipal facilities. Community leaders decided last summer it made good sense to re-establish the authority needed to make the most of existing resources. The Daily Camera recently spoke with a ballot measure 2C supporter:
"This allows the city of Boulder to determine what to do with a resource that already exists and is already paid for," said Timothy O'Shea, a member of the Yes on 2C steering committee who has worked with Boulder start-ups.
"It will not be the City Council determining that we'll have municipalization of those services," O'Shea said. "Yes on 2C is not about that. It's about the beginning of a dialogue and getting out from under a state law that prevents us from innovating with our existing resources."
Boulder's ballot measure [PDF] reads:
If you are in Longmont, you can sign up for gigabit service from LPC for only $49.95 per month. The Longmont Compass reports that customers who sign up within the first three months will retain that price point for an as yet undetermined extended period. AND, that price stays with the home if the customer sells, adding substantial value to the real estate.
The Compass also spoke with General Manager Tom Roiniotis about LPC's decision to offer Internet and voice but not video:
“Cable TV is a dying industry. People want to get the TV that they want, not the TV that the cable companies force them to get.”
When pressed for an example, Roiniotis considered sports. If you want to watch an NFL game, why should you have to pay for two hundred channels you’ll never even tune into? There is a growing consensus that audiences don’t want to watch the movie that happens to be on Showtime right now, they want to choose when to start, when to pause, and what movie they’re interested in. As he put it, “The consumer is finally becoming king in the world of TV.”
“In five years, I can see Xfinity (the Comcast content delivery network) using our fiber-optic to deliver their content,” he says. “So instead of investing another $20M in the technology to deliver cable, we save that money and let the consumers drive the future of content delivery.”
Letters to the editor from Longmont locals express impatience. They want better services! P.R. Lambert recently wrote:
It's really sad that the Longmont fiber optic Internet will take so long to be installed. From what I see, the two major competitors (Comcast and Century Link) seem to believe that customers are a bother.
Boulder is the latest Colorado community to recognize the benefits of using city-owned fiber to spur job growth and improve quality of life. Boulder Director of Information Technology Don Ingle joins us for episode 108 of the Community Broadband Bits podcast. We discuss the many ways in which Boulder has benefited from community owned fiber over the past 15 years and the smart policies they have used to expand conduit throughout the community. We finish with a discussion about the upcoming referendum that Boulder will likely place on the November ballot to regain local authority to use and expand its fiber assets to encourage job growth and increase residential options.
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 Waylon Thornton for the music, licensed using Creative Commons. The song is "Bronco Romp."
Construction on Longmont's fiber expansion will begin by August 13th, reports the Times-Call. TCS Communications of Englewood, Colorado recently signed an agreement with Longmont Power & Communications (LPC) to deploy the gigabit network for $20,095,022. Completion is scheduled for 2017.
A July 14th article on the project noted that LPC and TCS will complete construction in six phases. A substantial number of potential subscribers will have access early in the process:
The first phase will be done in south-central Longmont, the area nearest to LPC itself. The work will then proceed into central Longmont by early 2015. At that pace, 11,147 of the utility's 39,061 customers would be able to get fiber service within a year of the start of construction.
Readers will recall that last November the people of Longmont voted to approve a $45.3 million bond issue to bring the network to every premise in the city. Chris spoke with Vince Jordan, one of LPC's champions, in episode #106 of the Community Broadband Bits podcast.
Clearly, LPC is carrying on the customer service priority established by Jordan and the LPC crew:
"We set a high bar with regards to quality of work, customer service and timeline," LPC general manager Tom Roiniotis said in a release Monday evening. "We want to make sure it is done efficiently; we want to make sure it is done right."
LPC provides updates and a map of the project at its website.
Boulder's City Council is considering November ballot question to restore local authority for municipal telecommunications services. The measure, if passed, will create an exemption to the 2005 Colorado law allowing Boulder to better use its existing fiber optic infrastructure.
Apparently, the Boulder community has a self-reliant streak. This is not the first time the Institute for Local Self-Reliance has reported on the community of 97,000. John Farrell, Director of the Democratic Energy initiative, has followed the grassroots campaign to establish a city-owned electric utility in Boulder.
The Daily Camera reports that City Council staff, in a memo to Members, recommend the community seek authority to make use of existing assets. The City owns an extensive network of conduit that it began developing in the 1990s. Boulder has aggressively expanded the network, leasing it to private partners and using the space for a fiber I-Net to connect over 50 municipal facilities.
The Boulder Research and Administration Network (BRAN) serves the City, the University of Colorado, the U.S. Department of Commerce, and the University Corporation for Atmospheric Research. Each of the four entities shared equally in funding the $1.2 million eleven mile network. Boulder is an administering partner for BRAN and hopes to capitalize on that relationship even further.
Approximately 10% of Boulder's residents have home-based businesses, reports City Council staff. The community ranks high in the concentration of software engineers, innovators, and scientists. Businesses with less than 100 employees comprise 97% of firms in Boulder. Local surveys indicate the business community is hungry for better services. From the Daily Camera article:
[Director of Information Technology Don] Ingle said the city has no concrete plans in place to pursue partners, but he believes there will be a lot of interest if Boulder can get the authority.
By a 3,982 in favor and 1,397 opposed, the voters in Montrose decided on April 1st to take back local authority for telecommunications services. The state revoked the community's ability to establish a telecommunications utility in 2005.
Jim Branscome covered the election results in the Daily Yonder. Branscome, a resident of Montrose, knows the local broadband situation:
Internet service here is currently a hodgepodge. Some of us depend on broadcast towers, some on DSL from CenturyLink and some on cable service from Charter. Service is generally at less than 10MB. It’s expensive, and customer service is erratic.
Community leaders state that they want to encourage fair competition and ensure every one has the opportunity to fast, reliable, affordable connectivity.
In addition to ensuring that local businesses are in a position to compete with any large corporations that might attempt to establish a major share of the market, Turner said the city also wanted measures to enable lower income households to benefit from the advantages of gigabit speeds and capacity. “We don’t want to create two levels of society here, those who are connected and those who are not,” he said.
While Montrose is a long way from getting every person connected, the community is discussing the idea of financing a network with revenue bonds.
This election result demonstrates Montrose's desire to be in control of their own connectivity. They understand the need to think of the future. From the Daily Yonder article:
It used to be that if a town wanted to prosper, it needed a river, then a railroad, then an Eisenhower Interstate highway, and then a cell phone tower. Today it needs to be a “gigabit city.”
Colorado communities continue to seek to restore local authority for telecommunications. In April's election, elected officials of Montrose will ask voters to approve a measure that gives the municipality the right to establish a telecommunications utility.
Centennial, a Denver suburb, approved a ballot initiative last fall to use city fiber resources as a way to provide indirect telecommunications services. Centennial's community leaders want to create the most business friendly environment as possible to spur economic development.
Montrose is taking a similar approach, although the language on this ballot does not limit the City to "indirect services." Elected officials have not mentioned the desire to provide any specific services yet, but the language of the ballot question suggests they do not want limited possibilities.
The City Council approved the following language for the April 1, 2014 ballot:
"Without increasing taxes, shall the citizens of the City of Montrose Colorado re-establish their City's right to provide all services restricted since 2005 by Title 29, article 27 of the Colorado Revised Statutes, described as "advanced services," "telecommunications services" and "cable television services," including any new and improved high bandwidth services based on future technologies, utilizing community owned infrastructure including but not limited to the existing fiber optic network, either directly or indirectly with public or private sector partners, to potential subscribers that may include telecommunications service providers, residential or commercial users within the City?"
A Montrose Daily Press covered the decision:
“We’ve been working on improving our broadband in the community for quite some time,” Virgil Turner, city director of innovation and citizen engagement, said. “The city has recognized that broadband is an area where we are not on equal footing with the Front Range.”
Earlier this month, a majority of voters in Emmetsburg supported a proposal to issue bonds to build a fiber network. Nevertheless, the measure failed because Iowa requires a 60% majority when general obligation bonds fund all or part of a proposed project.
Years ago, the community voted to establish a municipal cable communications or television system. Emmetsburg leaders feel the time is right to realize the community vision. The proposed project would have used revenue bonds in addition to general obligation bonds.
We reported on Mediacoms' efforts to derail the vote with misleading lit drops across the community and we recently received new details on Mediacom's propaganda. The literature does not contain a "Vote No" statement, which may have allowed Medicom to avoid reporting it as an election expense.
Both pieces read like a talking point primer for industry executives. The letter from Senior Vice President Dan Templin, suggests that Mediacom is already operating gigabit service over fiber in Emmetsburg and that they intend to expand that service to business clients. The letter does not suggest that their gigabit service is affordable or reliable, neither of which are terms commonly used to describe Mediacom's services.
Mediacom was ranked last in a 2012 Consumer Report survey of 50,000 people. He, or rather his legal and marketing team, suggests the people of Emmetsburg and Mediacom "work together to leverage our [Mediacom's] investment." The people of Emmetsburg can begin working with Mediacom to "leverage" that investment by sending an email to a vague "info" email address.
Last week, we were excited by the results of Longmont's referendum, but we sure weren't alone. The Washington Post's Brian Fung wrote, "Big Cable may have felled Seattle's mayor, but it couldn't stop this Colo. project."
Our regular readers know that Comcast succeeded in defeating the Longmont measure in 2009 but the electoral would not be swayed by false promises and lies the second time in 2011. This year's proposal asked voters to approve a revenue bond for $45.3 million to speed up a planned expansion, which voters approved 2:1.
Contrary to past experience, Comcast and allies did not launch a full frontal assault in Longmont this year to sway the vote. Fung's article looks at the math for a possible explanation:
There are 27,000 households in Longmont. Even if the city were to connect all of the eligible homes [close to the fiber ring] to its existing fiber network overnight, it would still reach only 1,100 residences. Cable companies therefore spent over half a million dollars [in 2011] trying to prevent four percent of city households from gaining access to municipal fiber on any reasonable timescale. That's around $600 a home, or six months' worth of Xfinity Triple Play.
Even if the cable companies decide it was not worth the fight in Longmont, they have shown repeatedly that they have cash, will travel. Fung's article describes another 2009 election in which the cable industry spent large to prevent public investment in fiber: