Next City - April 20, 2017

Tennessee Bills Send Message on Municipal Broadband

Written by Josh Cohen

In a world increasingly reliant on high-speed internet for all facets of life, about 34 percent of Tennesseans lack broadband access. Two state bills were considered this year to remedy that. One would’ve allowed city-owned high-speed internet infrastructure to expand at no cost to residents. Another outlined an offer of $45 million in subsidies to private internet service providers to build the same infrastructure. Only the latter passed.

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Unsurprisingly, surrounding towns and suburbs want access to that network. EPB wants to expand as well. But they cannot. A state law pushed by private telecom companies prohibits public utilities with broadband networks from expanding beyond city limits. The Federal Communications Commission overturned that law in 2015, but an appellate court reversed the FCC’s ruling, meaning the law still stands.

State Senator Janice Bowling’s bill would’ve changed Tennessee law to allow municipal broadband providers to expand beyond city limits. Tullahoma, a city in Bowling’s district, also has a municipal broadband network. EPB said it could expand its network infrastructure with cash on hand and private loans. But both Bowling’s bill and its companion in the House died in committee.

Instead, the legislature passed the Tennessee Broadband Accessibility Act, a bill pushed by Governor Bill Haslam. It provides $45 million in tax breaks and grants to private companies such as AT&T and Comcast to build broadband infrastructure in communities that need it.

If you’re going to talk about gigabit Internet access, Chattanooga is going to be part of the conversation. Chattanooga’s Electric Power Board (EPB) is the go-to example for citywide, symmetrical, high-quality, gigabit connectivity, and it has been since 2010.

But some one forgot to tell Comcast.

On March 20th, the ISP posted a new Xfinity video to “introduce” Chattanooga to gigabit speeds. Many, many snarky comments followed, from critique about the poor Internet access to complaints about slipshod customer service. The Times Free Press picked out some of the more memorable responses:

* Jason Schmurr: "Nope, Comcast is definitely not introducing gig-speed Internet to Chattanooga. In fact, the only thing they have introduced was a lawsuit attempting to ban gig-speed Internet from Chattanooga."

* Matthew Borden: "If I had the choice.... I'd still choose EPB. Unfortunately I am stuck with Comcast because they are the only provider in my area with broadband Internet access."

* Alixanderia Echbright: "I'd rather birth a cactus than deal with Comcast ever again. Gig speeds have been here for years, buck up."

* Scott Vandergriff: "The difference is EPB has no traffic throttling, no data cap and no "introductory" pricing. $69/month for straight unimpeded, symmetric gigabit fiber and it's been that way for years."

* Vince Cantrell: "Not sure why anybody would pay for Comcast over EPB. EPB has direct fiber to every house in Chattanooga, and has had gigabit for 7+ years already."

* Brent Tapio: "LOL, 'Introducing'? You guys have heard the term 'Gig City' used before right?"

* Patrick Alan Jaworski: "You guys realize that was already a thing ....right?"

* Steve Allen: "I'm glad I'm not the Comcast person that has to respond to all these comments."

Comcast told the Times Free Press that the strong negative response to the marketing campaign came from a "misunderstanding" in what the national provider meant to convey. Guess they should have said what they meant and meant what they said.

You judge:

This is the transcript for Community Broadband Bits Episode 247. Ken Demlow of Newcom Technologies chats with Christopher Mitchell about what happened in Nashville and why poles are important for fiber. Listen to this episode here.

Ken Demlow: There's all that kind of communication that not only can improve what happens in electric and what happens in water, but also just such better communication with your customer, and it's all good stuff.

Lisa Gonzalez: This is episode 247 of the Community Broadband Bits Podcast from the Institute for Local Self-Reliance. I'm Lisa Gonzalez. Ken Demlow, Sales Director of Newcom Technologies joins Christopher this week to talk about several topics. In addition to discussing engineering and design and how it relates to telecommunications networks, Ken shares how Newcom is taking advantage of new technology to offer communities the best results. Christopher and Ken also get into the details of smart-grid and some benefits and uses that you might not necessarily think of right away. The guys spend some time on what happened in Nashville when Ken worked on the Google Fiber project. He shares his inside perspective. You can learn more about Newcom at nucomtech.com. Now, here's Christopher with Ken Demlow from Newcom Technologies talking about engineering and design, smart-grids, and pole drama in Nashville.

Christopher Mitchell: Welcome to another edition of The Community Broadband Bits Podcast. I'm Chris Mitchell. Today, I'm speaking with Ken Demlow, the sales director of Newcom Technologies. Welcome to the show.

Ken Demlow: Thank you. Good to be here.

Christopher Mitchell: Ken you're one of my favorite people at these trade shows. We're here at the Iowa Association of Municipal Utilities, and as you know, I contrived an excuse to have you on because I think you're a fun person to talk to.

Ken Demlow: Thank you. That's better than I deserve, but thank you.

Christopher Mitchell: I think we're going to start with just a brief explanation of what Newcom Technologies does.

“Monopoly” may be a fun family night activity, but if you live in a place where you have little or no choice for Internet access, it’s not fun and it’s not a game.

According to FCC data, most families don’t have a choice in Internet access providers, especially providers they like. Nevertheless, the biggest companies keep reporting increasing revenues every year. People aren’t happy with the service they’re receiving, but companies like AT&T and Comcast continue to thrive. What’s going on?

In a recent State Scoop piece, Christopher wrote: 

[T]he market is not providing a check to AT&T or Comcast power. They are effectively monopolies — and as we just saw — can translate their market power into political power to wipe out regulations they find annoying.

At the Institute for Local Self-Reliance, where we work to support local economies, this broken market is a major problem. Cable monopolies are bad for local businesses, which become less competitive from paying too much for unreliable Internet access. Communities cannot thrive without high quality Internet access today. 

We created this infographic to present the evidence showing that the market is broken. This resource also discusses why creating more competition in the current market is such a challenge. An effective way to overcome this broken market, however, is to consider what hundreds of local communities are already doing - investing in publicly owned Internet infrastructure. Our infographic offers a few examples of different models, each chosen to suit the communities they serve.

Get a larger version of the infographic here. 

Get a larger version of the infographic here.

Kudos to intern Kate Svitavsky who created the infographic.

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In January 2016, Holland, Michigan, made commencing fiber-optic Internet access to residential neighborhoods its number one goal for fiscal year 2017. They’re a little behind schedule, but the town is now moving forward by expanding a pilot project in order to serve a larger downtown area.

It's Really Happening

The Holland Board of Public Works (BPW) held an informational meeting on March 13th to answer questions from the community and share plans for the potential expansion. About a year ago, we reported on the results of a study commissioned by the city in which, based on a take rate of about 40 percent, 1 Gigabit per second (1,000 Mbps) connectivity would cost residents about $80 per month. Small businesses would pay approximately $85 per month and larger commercial subscriber rates would run around $220 per month. The update on the plan confirms those figures, noting that the four businesses that tested the pilot services had positive experiences. As a result, BPW feels it’s time to expand to more of downtown.

"If it goes really well we hope to be able to expand the service out as far into the community as we can," said Pete Hoffswell, broadband services manager at BPW.

The expansion is planned for construction in June and July, with service testing in August. Actual delivery would be in September, BPW estimates.

BPW will use a boring technique to place conduit and fiber below ground so there will be minimal disruption. No streets will be closed. Next, BPW will get construction bids, evaluate them, and present them to the City Council for approval.

Not An Impulse Decision

Holland has had dark fiber in place for decades for the municipal electric operations. Later BPW extended it to schools and businesses that needed high capacity data services. After years of incremental expansions, the network is now more than 150 fiber miles throughout the city.

This is episode 241 of the Community Broadband Bits podcast. John Bergmayer from Public Knowledge joins the show to talk about the "bundle" in the cable industry. Are cable bundles a bargain as advertised? What do customers want? Listen to this episode here.

John Bergmayer: You know the structure of the programing industry and the structure of the cable industry means effectively they're not being served. They’re getting ripped off I believe.

Lisa Gonzalez: This is episode 241 of the Community Broadband Bits podcast from the Institute for Local Self Reliance, I'm Lisa Gonzalez. Cable subscribers often complain about bundling. Being forced to choose from video packages that include channels they don't want in order to get access to the content they do want. Why are we stuck in this model? And what are the ramifications for service providers? Especially now that so much content is available via the Internet. What are some of the concerns smaller cable providers encounter when negotiating for content? This week, Christopher talks with John Bergmayer, Senior Counsel from Public Knowledge who explains why Comcast and Time Warner Cable and other cable companies are so in love with the bundle. They discuss why it's difficult to move past this model and whether or not bundles are a bargain, as they are described in advertising. Or something quite different. Now here's Christopher and John Bergmayer, Senior Counsel at Public Knowledge, discussing unbundling and the world of cable.

Christopher Mitchell: Welcome to another edition of the Community Broadband Bits podcast. I'm Chris Mitchell. Today I'm speaking with John Bergmayer, Senior Counsel for Public Knowledge, a non-profit organization in Washington, DC. Welcome to the show!

John Bergmayer: Yeah, thanks for having me Chris.

Christopher Mitchell: John, can you tell us a little bit about what Public Knowledge does for people that haven't been around to hear past interviews with Chris Lewis and Harold Feld and other great people that you have on staff?

If you’re like much of the country, you may be stuck in a bad romance with your Internet Service Provider. In the spirit of the holiday, the writers at MuniNetworks.org reimagined three of the biggest providers as their sweeties and, you guessed it, things weren’t all wine and roses.

Comcast - “The Creep”

by Kate

All across the U.S., Internet subscribers are settling for Comcast when there’s no one else to date. After the excitement of a new relationship in the form of low price introductory rates disappears, you are left with nothing more than slow, inconsistent speeds and jacked up service fees. What had been a steady relationship quickly hits rocks when Comcast becomes lazy, realizing that you will never break up with them because there’s no one else in town to date. When you finally can’t stand Comcast’s high costs, added fees, data caps, and inconsistent speeds, you decide to take a break but just like a bad date, Comcast refuses to take “no” for an answer. What can you do when your only other choice is DSL? You’re trapped by “The Creep.”

AT&T - “Darth Vader”

by Hannah

AT&T is the empire of telecom.  The empire will control everything and everyone through the power of the Death Star or, in AT&T’s case, through lobbyists and high prices. AT&T’s willing to put in a minimal level of support in rural areas: just like the empire maintains a small outpost on Tatooine but doesn’t care that the rural planet is full of smugglers and run by a mob of Hutts. Personified, the company is most certainly Darth Vader: manipulative, secretive, and powerful. He will only help you if there’s something in it for him. He doesn’t actually care about your feelings, only that he maintains power over you (it's just like paying AT&T not to spy on you). Don’t date Darth Vader – you can’t trust him.

CenturyLink - “The Old Geezer”

Xmas and New Year's Eve are traditionally a time to get sentimental. We started getting sentimental about last year's poetic holiday masterpiece by Tom Ernste and Hannah Trostle and decided to share it again this year.

From all of us at the Community Broadband Networks Initiative at the Institute for Local Self-Reliance, we wish you a happy holiday season and a 2017 filled with great moments!

Seattle hasn’t given up the possibility of fast, affordable, reliable connectivity for all.

The city has long struggled with how to improve Internet access for residents and businesses. They commissioned a feasibility study in 2015 to learn more about the cost and potential for a citywide broadband utility, but the hefty estimated cost - $480 million to $665 million - subdued the conversation. The City Council, however, is taking steps to ensure the city doesn’t lose site of the idea of Internet access as a utility.

Keeping The Dream Alive

Council Member Rob Johnson introduced an amendment to the Mayor’s Comprehensive Master Plan to keep the concept of ubiquitous high-quality connectivity in the city’s future. Johnson’s amendment, which passed at a September City Council meeting, added Municipal Broadband to the list of potential future discretionary projects in the Mayor’s Comprehensive Master Plan. The plan addresses the city’s long-term growth vision. 

The fiscal analysis, or Green Sheet, puts the price tag at $303,000 in 2017 and $137,000 in 2018. The funding would cover the cost of a full-time staff person in the city’s IT department and the cost to develop a business plan for a city-owned municipal broadband utility. The funding did not make it into the final budget, but with municipal broadband in the Master Plan, a future budget may see the addition.