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Local Businesses Suffer in Tennessee as State Prevents Chattanooga Expansion

As our readers know, the FCC is currently considering petitions submitted by Chattanooga and Wilson, North Carolina. Both communities want the ability to expand their ability to offer advanced telecommunications services, contrary to existing state anti-muni laws. As we glance through the comments, we notice that ISPs, advocacy groups, and local governments are not the only commenters with a vested interest in the outcome. 

There are also compelling stories from individuals, local businesses, and organizations that are looking for better options. In some cases they have one provider but are unhappy with the service so support municipal network expansion. In other cases, they have dial-up (or no service at all) and are maddeningly close to an EPB or Greenlight connection but state restrictions forbid service to them.

We recently spoke with Joyce Coltrin, owner of J & J Nursery located on the edge of Cleveland, Tennessee, in Bradley County. She is about 32 miles from the heart of Chattanooga but only 3/8 mile from the edge of the EPB fiber optic service area. Her only choice for Internet at her nursery is AT&T dial-up. Joyce tells us:

"I could walk right to it - it is the closest provider and we don't have any broadband access!"

Joyce submitted comments early in the proceedings. She choose to send her comments via snail mail because her email is so unreliable.

For the past 15 years, Joyce and other people in her community have requested better service from AT&T. They were told repeatedly it would be 3 months, 6 months, 9 months until they would get upgrades but it never happened. They finally decided to look for connectivity elsewhere. Joyce and her neighbors approached their electric provider, Volunteer Energy Cooperative, in the hopes that they could work with EPB to bring services to the area. Volunteer and EPB had already discussed the possibility, but when the state law was passed that prevented EPB from expanding, the efforts to collaborate cooled.

Local Tennessee Communities Rally Behind EPB

As the FCC contemplates the fate of the Chattanooga EPB's ability to expand to surrounding communities, some of those Tennessee communities are publicly announcing their support. The Town of Kimball and Marion County, both part of the Chattanooga metro area, have passed resolutions asking state legislators to reconsider Tennessee's anti-muni law.

The Times Free Press reports that Kimball's Board of Mayor and Alderman unanimously and officially asked their state officials to introduce legislation enabling local authority. They requested action as early as the next legisaltive session.

Marion County passed a similar resolution in August - also unanimously. According to Kimball's City Attorney Bill Gouger:

"It is a situation where there are providers out there who would like to extend fiber-optic cable and high-speed Internet-type systems throughout our county," Gouger said. "The simple fact is, right now, our state laws make that really difficult to do, if not impossible."

County Mayor David Jackson is reaching out to the other municipalities in Marion County to increase support. From the article:

High-speed Internet access is "very important" for the entire county, said Jackson.

"It would, hopefully, give us another edge in getting new industry and other businesses to our county," he said. "It [quality Internet access] is very vital. We've got some industries now that are really struggling because they have limited Internet access."

Gouger said commercial and industrial developments are making high-speed Internet access a "requirement" for setting up shop in rural areas like Marion now.

"If we can't get those types of things throughout our county, it's going to disqualify us from some future growth," he said. "That's the whole purpose of this resolution."

ILSR Submits Comments to FCC in Support of Restoring Local Authority

The Institute for Local Self-Reliance recently submitted comments on FCC petitions filed by Wilson, North Carolina and Chattanooga, Tennessee. We have been following the proceedings that may prove to be the tipping point in the movement to regain local telecommunications authority.

Our organization collaborated with eight other groups and two D.C. Council Members to provide detailed comments for the Commission's consideration. Our group supplied examples of the benefits munis bring to local communities. In addition to providing connectivity where the incumbents fail to meet demand, our comments point out that municipal networks encourage private investment. We provide concrete evidence of both.

With our partners, we also addressed the fact that state restrictions like the ones in North Carolina and Tennessee are not needed. Local communities must go through a rigorous, transparent process everywhere before investing. State legislative barriers are the product of intense lobbying from the cable and telecommunications giants.

As we point out to the Commission, municipal networks are an important tool to bring ubiquitous Internet access to the U.S.:

Blackburn and Wheeler: Awkward Penpals

Back in June, some sixty House Republicans led by Tennessee’s Marsha Blackburn sent an open letter to FCC Chairman Tom Wheeler expressing their “deep concern” with his support for community networks. They took issue with comments he made at a House Energy and Commerce hearing in May, indicating his willingness to preempt incumbent-sponsored anticompetitive state laws that handicap or outright ban municipal networks. 


In the the views of Rep. Blackburn and her allies, this “sets a dangerous precedent and violates state sovereignty in a manner that warrants deeper examination.” They demanded answers from Chairman Wheeler on a set of eight questions so leading that they would make even the most partisan pollster blush. They featured many of the same “states’ rights,” “unelected federal bureaucrat,” and “unconstitutional authority” talking points used later in the floor debate over Blackburn’s anti-muni amendment, softened up and rephrased just a bit for polite company. 


In late July, Chairman Wheeler offered a formal written response. He opened with a diplomatically worded overview of the U.S. broadband sector, before launching into the heart of the matter:

“...Many states have enacted laws that place a range of restrictions on communities’ ability to make their own decisions about their own future. There is reason to believe that these laws have the effect of limiting competition in those areas, contrary to almost two decades of bipartisan federal communications policy that is focused on encouraging competition. I respect the important role of state governments in our federal system, but I also know that state laws which directly conflict with critical federal laws and policy may be subject to preemption in appropriate circumstances.”

Internet Slowdown Day: Tell the FCC You Do Not Want Fast Lanes

Depending on what websites you have visited today, you may have noticed the "spinning wheel of death" greeting you followed by a request to join on a letter in favor of network neutrality. September 10, 2014 is now known as Internet Slowdown Day.

The idea is to demonstrate what your Internet experience may be like if our country moves forward with the proposal to allow fast lanes. We are in the last few days of the final round of public comments on the FCC's proposed net neutrality policy; this is a final push to encourage users to express their support for an Internet free of fast lanes.

In case you have not read the letter, here is the text:

Dear Chairman Wheeler:

We are writing to urge you to implement strong and unambiguous net neutrality rules that protect the Internet from discrimination and other practices that will impede its ability to serve our democracy, empower consumers, and fuel economic growth. Erecting toll booths or designating fast lanes on the information superhighway would stifle free speech, limit consumer choice, and thwart innovation.

The FCC must act in a clear and decisive way to ensure the Internet does not become the bastion of powerful incumbents and carriers, but rather remains a place where all speakers, creators, and innovators can harness its power now and in the future.

The Internet is a staple of our lives and our economy. The FCC should protect access to the Internet under a Title II framework, with appropriate forbearance, thereby ensuring greater regulatory and market certainty for users and broadband providers.

To ensure that the Internet fulfills its promise of being a powerful, open platform for social, political, and economic life, the FCC must adopt a rule against blocking, a bright-line rule against application-specific discrimination, and a rule banning access fees. These principles of fairness and openness should not only apply to the so-called last-mile network, but also at points of interconnection to the broadband access provider’s network. Likewise, strong net neutrality rules must apply regardless of whether users access the Internet on fixed or mobile connections.

ILSR Statement on FCC Call for More Competition: A Step In the Right Direction

There is little doubt that our readers are aware of Chairman Wheeler's remarks on September 4th at 1776, a start-up incubator in D.C. His message echoed what policy leaders have repeated countless times - competition is lacking in the world of broadband.

Telecommunications has become a popular topic in the past few months as decision makers are discovering that constituents DO care about online access, economic development, and exessive consolidation. ILSR was pleased to see the Chairman address the issue of lack of competition and released the following statement:

The Institute for Local Self-Reliance applauds FCC Chairman Tom Wheeler’s Agenda for Broadband Competition. We feel it is a positive step coming from the nation’s top communications official.  

“These gigabit developments are positive, but they are not yet pervasive,” Wheeler said. “Looking across the broadband landscape, we can only conclude that, while competition has driven broadband deployment, it has not yet done so a way that necessarily provides competitive choices for most Americans.”

Wheeler's recognition that Americans lack a true choice in fast, affordable, and reliable Internet access is an important development. If we want real options for next-generation connectivity, local governments must be free to build then own networks. 

If there is one thing we have learned from the history of essential infrastructure, it is that local governments must have the option of building and owning it themselves. 

Hundreds of communities have already invested in their own fiber networks, keeping money in the local economy and spurring job growth.” says Community Broadband Networks director Chris Mitchell.

Center for Public Integrity Covers Big Telecom Attacks on Munis

The Center for Public Integrity recently published an excellent article worth sharing. In "How big telecom smothers city-run broadband," Allan Holmes describes the money-for-infleunce machine at the state level, connects the dollars, and reveals bedfellows. The article is part of a series investigating the political power of big cable and telecom companies.

If you are a regular at MuniNetworks.org or any other news source covering telecommunications, you are familiar with the renewed push to restore local telecommunications authority that began in January of this year. Holmes provides a little background on the court case that inspired FCC Chairman Wheeler to publicly state that the agency is serious about restoring local authority.

Since those developments, an increasing number of journalists have reported on how we came to have barriers to municipal networks in some 20 states. The revived interest has further revealed that state legislatures are big benefactors of campaign contributions from cable and telecom leaders. "Think tanks" aimed at protecting industry giants and conservative millionaires prove to be at the heart of this payola. Holmes does an excellent job of simplifying the web of political influen$e that dooms millions of people to dial-up, outdated DSL, and aging cable infrastructure.

Holmes follows the story of Janice Bowling, a state senator from Tennessee representing the district that is home to LightTUBe in Tullahoma. When she introduced a bill to allow LightTUBe to expand to serve surrounding communities, she did so because:

…I believe in capitalism and the free market. But when they won’t come in, then Tennesseans have an obligation to do it themselves.

When it appeared the bill might get some traction:

Rural Broadband Funding Webinar

The FCC has made a $100 million fund available to organizations seeking to bring advanced telecommunications to rural America. The National Rural Assembly is hosting a national webinar to explain the criteria and application process. If you or your organization have a stake in expanding broadband in rural areas, you may want to consider this resource. From National Rural Assembly's Broadband Working Group press release:

Recently, the Federal Communications Commission launched the Rural Broadband Experiments - a $100 million funding initiative seeking  proposals that bring advanced telecommunications services to Rural America. Deadline to apply is October 12th 2014. For the first time, cooperatives, municipalities, nonprofits, anchor institutions, and Tribal governments will be able to access federal funding to bring broadband service to rural areas. This is a historic opportunity for entities committed to rural communities. 

On Thursday, August 28th at 1:00pm Eastern, join the Rural Broadband Policy Group and the National Rural Assembly on a webinar featuring Jonathan Chambers from the Office of Strategic Policy and Analysis and Carol Mattey from the Wireline Competition Bureau, to learn about the rules and process to apply for the Rural Broadband Experiments. 

You can sign up for the webinar here.

Revisiting the Blackburn Amendment Debates

REMINDER - Today is the last day to file comments in the opening round of the FCC petitions of Wilson and Chattanooga. Information on how to file here.

Last month, we covered the progress of U.S. Representative Marsha Blackburn’s amendment to strip the FCC of its authority to restore local decision-making as its budget wormed its way through committee and into a larger appropriations bill. Her quest to keep state bans and restrictions on community networks in place (including in her home state of Tennessee, where Chattanooga EPB has filed a petition to start serving neighbors in need) is impressive for its boldness, if not its logical consistency. Impervious to many observers and commenters who noted her extensive financial support from incumbent telcos, she succeeded in passing the amendment on the House floor by a vote of 223-200.

The points raised by Representative Blackburn on the House floor in support of her amendment deserve some attention, as does the rebuttal offered by Representative Jose Serrano of New York’s 15 district, who rose against the amendment and in defense of the right of local communities to decide for themselves how to meet their broadband needs. Few of Blackburn’s arguments will surprise regular observers of the telco incumbent playbook, but there are some highlights that deserve special focus.

Rep. Blackburn based nearly her entire argument against FCC preemption on the idea that states are closer to the people than Washington, and that the FCC shouldn’t tell the local folks what to do:

“[Chairman Wheeler] wrongly assumes that Washington knows best, and forgets that the right answer doesn’t always come from the top down.”