
Fast, affordable Internet access for all.
Yet the challenge remains: monopolies have a high instinct for self-preservation. And more than half a dozen states have [no-glossary]passed[/no-glossary] legislation limiting municipalities from building public broadband networks in competition with private businesses. South Carolina passed its version last year. A similar bill narrowly failed in Georgia. Supporting these bills, of course, are the nation’s cable and telephone companies.Not really "supporting" so much as creating. They create the bills and move them with millions of dollars spent on lobbyists and campaign finance contributions, usually without any real public debate on the matter. Eduardo focuses on Google Fiber rather than the hundreds of towns that have built networks - as have most of the elite media outlets. Google deserves praise for taking on powerful cable and DSL companies, but it is lazy journalism broadly that has ignored the networks built by hundreds of towns - my criticism of the press generally, not Eduardo specifically.
According to the F.C.C.’s latest calculation, under one-third of American homes are in areas where at least two wireline companies offer broadband speeds of 10 Mbps or higher.We have 20 million Americans with no access to broadband. The rest are lucky to have a choice between two providers and even then, most still only have access to fast connections from a single provider. When the National Broadband Plan was unveiled, we were critical of it and believed it would do little to improve our standing.
In late 2006, Wilson, North Carolina, voted to build a Fiber-‐to-‐the-‐Home network. Wilson’s decision came after attempts to work with Time Warner Cable and EMBARQ (now CenturyLink) to improve local connectivity failed.
Wilson’s decision and resulting network was recently examined in a case study by Todd O’Boyle of Common Cause and ILSR's Christopher Mitchell titled Carolina’s Connected Community: Wilson Gives Greenlight to Fast Internet. This new report picks up with Wilson’s legacy: an intense multiyear lobbying campaign by Time Warner Cable, AT&T, CenturyLink, and others to bar communities from building their own networks. The report examines how millions of political dollars bought restrictions in the state that will propagate private monopolies rather than serve North Carolinians.
[no-glossary]Download[/no-glossary] the new report here: The Empire Lobbies Back: How National Cable and DSL Companies Banned The Competition in North Carolina
These companies can and do try year after year to create barriers to community-‐owned networks. They only have to succeed once; because of their lobbying power, they have near limitless power to stop future bills that would restore local authority. Unfortunately, success means more obstacles and less economic development for residents and businesses in North Carolina and other places where broadband accessibility is tragically low.
It certainly makes sense for these big companies to want to limit local authority to build next-‐generation networks. What remains puzzling is why any state legislature would want to limit the ability of a community to build a network to improve educational outcomes, create new jobs, and give both residents and businesses more choices for an essential service. This decision should be made by those that have to feel the consequences—for better and for worse.
This story was originally posted on the ILSR website.
The people of Warren County, Ohio, endured some rough weather in June as a 70 mph derecho whipped through this southwest county. A series of errors from CenturyLink kept 911 service inoperable for more than 15 hours. According to Stop the Cap!:
During the outage, callers initially heard nothing after dialing 911. Sometime later, someone at CenturyLink reprogrammed the equipment to forward calls from the Warren County 911 system in southwest Ohio to distant Geauga County’s 911 center in northeast Ohio near Cleveland, surprising operators.
Geauga County is located in the extreme northeast corner of Ohio, about as far away from Warren County as one can get without leaving the state. CenturyLink attributes the incident to a combination of inexperienced technicians, human error, and understaffing.
While accidents happen, the crux of this problem is in how CenturyLink responded to it.
Warren community leaders requested that CenturyLink meet with them to explain the fiasco, but CenturyLink was a no-show. Commissioner Dave Young, understandably upset, wants the county to turn over 911 services to another service provider.
“I want to switch sooner rather than later,” Young said. “The way this went down and the response we got from CenturyLink and now three weeks later we still don’t know the reason? We call our liaison and her solution to the 911 system being down is keep calling the 800 number. There’s something wrong there."
These massive carriers want to pretend they are the only ones capable of providing telecommunications services, but the reality is that many others do it better, including local governments and smaller, local private companies. The large carriers are a victim of their scale - no one knows what is going on.
We have watched Tacoma's Click! Network for years, sharing its advances and benefits with you. The latest achievement in Tacoma is a new option for customers - 100 Mbps.
The network is a division of Tacoma Power, which has been providing electricity to the community for over 100 years. The municipal utility upgraded recently to DOCSIS 3.0, increasing Internet speeds for customers.
Click! allows independent service providers to offer Internet access on the network rather than offering that service directly. This approach has resulted in less revenue for the publicly owned network, creating delays in paying down the debt from the infrastruture investment. Nonetheless, Click! has create benefits far in excess of costs -- from increased investment from incumbents to much lower prices for residents and businesses.
RainerConnect, Advanced Stream, and Net-Venture all offer retail services on the Click! network.
Customers from the three ISPs have multiple choices in speed and price, varying from $29.95 for up to 6 Mbps to $189.95 for the new 100 Mbps option. The choice allows consumers to tailor their Internet (and their Internet bill) to the their individual needs. Vibrant competition continues to create choice and affordable consumer prices. Regardless of what network they subscribe to, Tacoma residents tend to pay less than their Seattle brethren.
Unfortunately, it was no surprise to come across a recent news story that describes CenturyLink's misleading sales tactics. CenturyLink salespeople have gone door-to-door and told people Click! is closing. C.R. Roberts from the News Tribune covered the story in mid-July. According to the report, even after Click! contacted CenturyLink to complain, the lies continued in parts of the city. This is no single anomaly, we have heard of similar tactics being used in the past.
Clovis-based Secure Customer Relations, Inc., plans to move its entire operation to Provo, Utah this month, resulting in the loss of 98 jobs. ... Secure Customer Relations operates a call center that specializes in appointment setting, client prospecting and other functions on behalf of the insurance industry. Overall, the cost of operations in Provo would be a savings over Clovis, Carter said, including labor costs. He added that Clovis does not have the same level of fiber optic infrastructure as Provo.Interestingly, Clovis is slated to get better access to broadband as part of the stimulus-funded Central Valley Next-Generation Broadband Infrastructure Project. Unfortunately, that is one of them any middle mile projects that will connect community anchors but not offer any immediate benefits to local businesses and residents. It is a middle mile project, not a last-mile project that would build a fiber-optic access network like Provo has connecting everyone. This is not to demean the middle-mile project, but such things are often misunderstood (sometimes due to deliberate obfuscations by those promoting them). And speaking of obfuscation, the Economic Development Corporation of Utah apparently wants the Utah state government to take credit for this company moving to Provo.
"We move a lot of data and need high capacity," CEO Carter Beck told the Journal last week. His company specializes in appointment setting, client prospecting and other functions on behalf of the insurance industry. The relocation of companies like Secure Customer Relations, Inc.
Farmington, New Mexico, currently has 80 miles of fiber and has decided to consider the best way to get the most out of the investment. The City uses the fiber network strictly for its Farmington Electric Utility System but sees potential in maximizing the power of the unused strands. Earlier this year, they commissioned a study from Elert & Associates to investigate the technical possibilities. Front Range Consulting reviewed the financial pros and cons.
In February, both experts provided options to the City Council. While offering triple play services is a possibility, both firms recommended leasing available fiber to existing ISPs instead. Expanding to a triple play offering would require a $100 million investment to connect the 32,000 current Farmington Electric Utility System's customers.
Dick Treich, from Front Range Consulting, commented on the pushback to expect from Comcast and CenturyLink, if the City decided to pursue triple play retail services. From a February Farmington Daily Times article (this article is archived and available for purchase):
"They won't sit still for that," Treich said. "First they will challenge the legality of whether you can get into that option, possibly tying you down in court for a long time. They will also start the whole argument of public money being used for starting a private business. It would be a two-pronged attack."
The City Council also pondered the option of leasing fiber, which would require a $1.5 million infrastructure investment. Also from the article:
"Five companies have expressed interest," said Assistant City Manager Bob Campbell. "Assuming that those companies would each use approximately 10 miles of fiber, (they) would provide $170,000 annually leasing dark fiber."
Update:
Bob Campbell, Acting Director of the General Services Department of Farmington, emailed us this update:
David Cameron, city administrator, said the proposal is not so much about dissatisfaction with current providers as it is about finding new revenue for the city. Cameron said revenue from electric services has been a key source of funding for various projects and necessities for the city. That “enterprise” fund is getting smaller, Cameron said, and an alternative funding source is needed. “We have done a good job managing accounts, building a reserve,” Cameron said. “We want to keep building on the programs we have. It takes money and funds to do that.” City officials discussed the issue for the last 18 months and decided to put it to a referendum. Voters will decide the issue May 22.That is a fairly unique reason. Most communities want to build these networks to encourage economic development and other indirect benefits to the community. Given the challenge of building and operating networks, few set a primary goal of boosting city revenue.
If approved by voters, the city plans to spend $8.3 million to install 100 miles of fiber optic cable directly to homes and businesses. The city should be able to repay the debt in 12 years, if things go according to a feasibility study presented to the city’s board of directors in January.
According to a report by the National Institute on Money in State Politics, Dialing Up the Dollars: Telecommunication Interests Donated Heavily to NC Lawmakers, Republican lawmakers and those who held key leadership positions, sponsored the bill, and/or who voted in favor of the bill received considerably more campaign contributions from the telecommunication donors than did their colleagues. For example, lawmakers who voted in favor of HB 129 received on average 76 percent more than the average received by those who voted against the bill. The four primary sponsors of the bill received an average of $9,438 each, more than double the $3,658 given on average to lawmakers who did not sponsor the bill.Recall that Time Warner Cable pushed this bill for years with some help from AT&T, CenturyLink, and others that stood to benefit by limiting broadband competition. But the Legislature wisely refused to enact it... until 2011. Now we have a better sense of what may have shifted the balance. Consider this:
Thom Tillis, who became speaker of the house in 2011, received $37,000 in 2010–2011 (despite running unopposed in 2010), which is more than any other lawmaker and significantly more than the $4,250 he received 2006–2008 combined. AT&T, Time Warner Cable, and Verizon each gave Tillis $1,000 in early-mid January, just before he was sworn in as speaker on January 26. Tillis voted for the bill, and was in a key position to ensure it moved along the legislative pipeline.Running unopposed for office, he collected more money from the cable and phone companies than any other Representative and almost 10 times as much as in the previous two cycle combined. As Speaker, he set the agenda and decided priorities.