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TN and NC vs. FCC: Oral Arguments Scheduled for Thursday, March 17th
This Thursday, March 17th, attorneys for the FCC and the states of Tennessee and North Carolina will present arguments to the Sixth Circuit Court of Appeals on a case that could define parameters for publicly owned Internet networks. The proceedings begin at 9 a.m. eastern. Each side has 15 minutes to present.
As we reported a year ago, the FCC ruled that state barriers in Tennessee and North Carolina limiting expansion of publicly own networks are too restrictive and threaten the U.S. goal of expanding ubiquitous access. The FCC overruled the harmful state laws but soon after, both states filed appeals.
The cases were consolidated in the Sixth Circuit and a number of organizations, including ILSR, offered Amicus briefs. We have collected all the briefs and made them available for you here. As most of our readers will recall, the case focused on Chattanooga and Wilson, two communities that know the many benefits of publicly owned networks.
So, when you raise your glass of green beer on Thursday to celebrate St. Paddy's, send some luck to our friends in Wilson, Chattanooga, and the FCC!
Seniors, Low-Income, Disabled Communities Pay the Price in St. Paul
For seniors, low-income residents, and the disabled in Saint Paul, Minnesota, a Comcast discount within the city's franchise agreement is not all it was cracked up to be. The Pioneer Press recently reported that, as eligible subscribers seek the ten percent discount guaranteed by the agreement, they are finding the devil is in the details - or lack of them.
This is a warning to those who attempt to negotiate with Comcast for better service. Comcast may make deals that it knows are unenforceable.
"No Discount For You!"
For years, Comcast held the only franchise agreement with the city of St. Paul. In 2015, the city entered into a new agreement with the cable provider and, as in the past, the provider agreed to offer discounts for low-income and senior subscribers. Such concessions are common because a franchise agreement gives a provider easy access to a pool of subscribers.
It seems like a fair deal, but where there is a way to squirm out of a commitment, Comcast will wriggle its way out.
Comcast is refusing to provide the discount when subscribers bundle services, which are typically offered at reduced prices. Because the contract is silent on the issue of combining discounts, the city of approximately 298,000 has decided it will not challenge Comcast's interpretation:
The company notes that the ten percent senior discount applies only to the cable portion of a customer's bill. Comcast has maintained that it is under no legal obligation to combine discounts or promotions, and that bundled services provide a steeper discount anyway.
Subscribers who want to take advantage of the discounts will have to prove their senior status and/or their low-income status. In order to do so, Comcast representatives have been requesting a copy of a driver's license or state issued i.d.
CenturyLink Picks Up the Baton
Steamboat Springs Gets a Grant for Fiber for the Future
Last we checked in with Steamboat Springs they had just finished a connectivity project. Now the community is taking another step to improve local connectivity in this northwest Colorado ski resort town.
The goal is to connect large community anchor institutions throughout town with a fiber backbone which could become the basis for a larger network. Several community anchor institutions have pooled their resources and pledged $748,000 while also securing a matching grant to install 9 miles of fiber across the small town of 12,000. Funding is in place, but the agreement between the institutions must be finalized before sending out an official request for proposals to find a company to install the fiber.
Matching Grants & Community Connectivity
The Colorado Department of Local Affairs (DOLA) intends to match the community’s contributions towards the project. DOLA will provide $748,000 in grant money for the fiber backbone. According to Routt County Manager Tom Sullivan in Steamboat Today, the fiber design will have splice points to allow private providers to provide last-mile connectivity to residents’ homes and businesses from the fiber backbone.
So far, the large institutions pitching in for the 9 miles of fiber are: Routt County’s public safety complex, Yampa Valley Electric Association, the city of Steamboat Springs Mountain Fire Station, Yampa Valley Medical Center, Colorado Mountain College, and the Steamboat Springs School District. Several of these institutions had previously collaborated with the Northwest Colorado Broadband group and the Steamboat Springs Chamber Resort Association on the community's first connectivity project.
The Carrier Neutral Location
Missouri Legislature Off to Another Anti-Muni Session: Pick Up Your Phone and Call!
If you pay attention to state laws affecting municipal networks in Missouri, you are experiencing an unsettling feeling of deja vu right now. On January 7, Representative Lyndall Fraker introduced HB 2078, a bill much like last year's Senate anti-muni bill. Fraker is Chair of the House Utility Infrastructure Committee, where the bill is now awaiting a hearing, so it has a good chance of being heard sooner rather than later.
Your Phone Call Required!
Time to call Members of the Committee, especially if any of them represent you, and let them know that you expect them to vote against this bill. It is anti-competitive, opposed to local authority, and prevents new investment. Bad bill!
Preventing Partnerships to Maintain The Status Quo
This bill would not only make it extremely difficult for local communities to invest in publicly owned Internet networks, but would complicate and delay public-private partnerships. A number of communities across the country already own infrastructure and are exploring ways to partner with private providers who want to use it to serve schools, businesses, and residents. If a community wants to lower telecommunications costs or obtain better services, this legislation would have them first jump through a series of obscure, expensive, and cryptic hoops. This legislation creates barriers that serve no purpose except to erect hurdles that discourage local communities from finding better providers.
Are You From Tennessee? Your Opinion Matters!
For the past several months, we have covered the plight of North Carolina and Tennessee. These states have passed laws that prohibit local governments from expanding beyond their municipal electric utility service area to bring better connectivity to neighboring communities. Even though nearby towns ask places like Chattanooga or Tullahoma to provide services, they are prevented from doing so.
Today we bring to you this news story from Anderson County, Tennessee. Local officials are encouraging residents to tell the state about their horrible connectivity. With a bill in the state legislature to remove the restriction and the state embroiled in a court case to challenge the FCC's decision to roll back the state barrier, local governments are using the survey to connect people with lawmakers. In Anderson County, some local government agencies have hardcopies of the state’s survey for those without Internet access. Any Tennessee resident with Internet access can take the survey online here.
"It's the slow circle of death that you see wheeling around there, and it's waiting and waiting and waiting," -- Steve Heatherly, Anderson County Chamber of Commerce Chairman
Op-ed: Next-Generation Networks Needed
The Knoxville News Sentinel published this op-ed about Tennessee's restrictive broadband law on January 9, 2016.
Christopher Mitchell: Next-Generation Networks Needed
Four words in Tennessee law are denying an important element of Tennessee's proud heritage and restricting choices for Internet access across the state.
When private firms would not electrify Tennessee, public power came to the rescue. In the same spirit, some local governments have built their own next-generation Internet access networks because companies like AT&T refused to invest in modern technology. These municipal networks have created competition, dramatic consumer savings and a better business climate in each of their communities.
The four words at issue prevent municipal electric utilities from expanding their successful fiber optic Internet networks to their neighbors, a rejection of the public investment that built the modern economy Tennessee relies upon.
Current law allows a municipal utility to offer telephone service anywhere in the state, but Internet access is available only "within its service area." This limit on local authority protects big firms like AT&T and Comcast from needed competition, and they have long lobbied to protect their de facto monopolies. To thrive, Tennessee should encourage both public and private investment in needed infrastructure.
These municipal systems have already shown they can bring the highest-quality Internet services to their communities. Chattanooga's utility agency, EPB, built one of the best Internet networks in the nation. Municipal fiber networks in Tullahoma, Morristown and more have delivered benefits far in excess of their costs while giving residents and local businesses a real choice in providers.
Many of these networks are willing to connect their neighbors — people and businesses living just outside the electric utility boundary. If Chattanooga wants to expand its incredible EPB Fiber into Bradley County with the consent of all parties, why should the state get in the way?
Op-ed: Spanish Fork Proves Utah Law is Counter-Productive
The Salt Lake Tribune published this op-ed championing local investment in Internet infrastructure on December 11, 2015.
Op-ed: Spanish Fork’s success shows municipal Internet networks work
By Christopher Mitchell
For nearly 10 years, large telephone and cable companies have claimed municipal Internet networks are so risky that local government authority should be restricted. But after 15 years of experience, we can only conclude that the cure is worse than the disease.
Utah has three municipal networks, where local governments invested in Internet infrastructure to provide choices in a monopolistic environment. But only two of those networks are regularly discussed and used as examples of why local governments shouldn't be in this business: iProvo and UTOPIA, which were not able to meet their financial targets.
The network missing from the conversation is Spanish Fork Community Network, which has just finished paying off its debt and has generated millions of dollars in surplus revenue for the community. The network is now upgrading from community cable to community gigabit fiber optics.
Of the over 450 municipal networks tracked by the Institute for Local Self-Reliance, Spanish Fork's experience is above average. The vast majority of municipal networks deliver benefits well in excess of costs and do not require subsidies to operate.
It may come as a surprise, but iProvo and Spanish Fork are nearly twins, separated at birth and raised in dramatically different environments. Both were conceived at the same time — the same consultant did the feasibility study for each. But Spanish Fork, being smaller and more nimble, was able to move forward before Utah's Legislature weighed in to restrict local decision-making.
Comcast and the predecessor to CenturyLink crafted the legislation, which was revealed in a brilliant 2011 BusinessWeek article aptly entitled "Pssst … Wanna Buy a Law?" by Brendan Greeley and Alison Fitzgerald.
Since then, any new Utah municipal network has been subject to numerous requirements unlike anything private providers face, including a de facto requirement to use a wholesale-only arrangement.
TN For Fiber's New Video On Family Life In Bradley County
In a new video, Tennessee Fiber Optic Communities profiles what it is like for a family living in Bradley County, just outside of the reach of Chattanooga's EPB Fiber Optic network. Debbie Williams describes how she and her family struggle with a long list of issues most of us associate with the bygone era of dial-up Internet.
Watch this video and you will realize how families just outside of statutory limitations of EPB Fiber are living a different life than families served by the network. No one should have to deal with these kinds of problems. As Debbie puts it, "It's just wrong."
DebbieWilliams from TN For Fiber on Vimeo.
Ting! Holly Springs, NC to Get a Gig
While Google Fiber and AT&T focus on the large cities of the Research Triangle of North Carolina, the small town of Holly Springs is pursuing a third option.
Holly Springs will be the third town to see Ting’s “crazy fast fiber Internet.” After a successful foray into the U.S. mobile service market, the Toronto-based company Ting has started to provide Internet service by partnering with local governments. Ting will offer 1 Gbps in Holly Springs by building on the town’s $1.5 million municipal fiber network.
Muni network restricted by state law
Holly Springs, with a population of almost 30,000, has worked hard to improve its connectivity. In mid-2014, they completed a 13-mile fiber Institutional network (often called an “I-Net”) to connect the municipal buildings and other public institutions, such as schools and hospitals.
Unfortunately, when business and residents wanted to connect to the network, a North Carolina state law prevented the town from providing Internet services directly. As it became obvious that Google Fiber would not pass through the town, leaders worked with a consulting company to try to draw in a private Internet service provider (ISP).
Ting! Innovative Partnerships
The locked-up potential of that fiber helped attract Ting. The municipal network's unused fiber will function as a backbone for Ting to deploy its own last-mile infrastructure, which will provide connectivity directly to homes and businesses.
New Video on Economic Development and High-Speed Connectivity in Tennessee
Tennessee Fiber Optic Communities has released another quality video focused on restoring local telecommunications authority. This three minute feature describes the importance of high speed connectivity to local economic development.
The video offers specific examples of businesses that relocated to places like Jackson and Chattanooga, comparing business connectivity in places with municipal networks to areas where high-speed connections from incumbents are costly and hard to come by.
Check out the video from the Tennessee Fiber Optic Communities:
TNFOC_EconomicDevelopment2 from TN For Fiber on Vimeo.