lawsuit

Content tagged with "lawsuit"

Related Topics
Displaying 51 - 60 of 76

Jim Baller Discusses Municipal Broadband History - Community Broadband Bits Episode #57

Jim Baller has been helping local governments to build community owned networks for as long as they have been building them. He is the President of and Senior Principal of the Baller Herbst Law Group in Washington, DC. Jim joins us for Episode #57 of the Community Broadband Bits podcast to discuss some of the history of community owned networks. Jim has a wealth of experience and helped in many of the most notable legal battles, including Bristol Virginia Utilities and Lafayette. We start by noting some of the motivations of municipal electric utilities and how they were originally formed starting in the late 19th century. But we spend the bulk of our time in this show focusing on legal fights in the 90's and early 2000's over whether states could preempt local authority to build networks. In our next interview with Jim, we'll pick up where we left off. If you have any specific thoughts or questions we should cover when we come back to this historical topic, leave them in the comments below or email us. You can learn more about Jim Baller on his website at Baller.com. Read the transcript from this episode here. We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address. This show is 30 minutes long and can be played below on this page or subscribe via iTunes or via the tool of your choice using this feed. Search for us in iTunes and leave a positive comment! Listen to previous episodes here. You can can download this Mp3 file directly from here. Find more episodes in our podcast index. Thanks to Break the Bans for the music, licensed using Creative Commons.

Monticello Moves Closer to Settlement with Bondholders

It has been about a year since we checked in on FiberNet Monticello, a city-owned FTTH network about 40 miles northwest of Minneapolis. At that time, the network was generating insufficient revenue to meet debt payments, the private company operating the network (HBC) was stepping down, and Gigabit Squared was kicking the tires. Since then, Gigabit Squared and Monticello decided against a partnership and the City ceased making payments to bondholders. Previously, the City had covered the difference between revenues and debt payments by borrowing from the City's liquor store fund, a municipal enterprise fund. Monticello had financed the network with unbacked revenue bonds, meaning investors understood from the start that the full faith and credit of taxpayers would not "make them whole" in the event that the network did not create the revenues necessary to pay back the bond. Because Monticello chose that financing method, it had to pay a higher interest rate - those who buy bonds understand the differences in risk with different types of bonds and rates. However, the City has been negotiating with bondholders for a settlement to avoid potential lawsuits over the telecom utility and because this is a typically what how these situations are worked out. Bondholders will "take a haircut" in the parlance of finance rather than risk a total loss. Last week, Monticello City Council approved a $5.75 million proposed settlement in addition to the remaining funds left in the reserve fund, totaling approximately $8 million from an outstanding bond of $26 million. Final resolution may take many more months, but the major arguments seem to be worked out. This means that Monticello will own and continue to operate FiberNet Monticello. It also means that rather than having a network financed by revenue bonds, the network will have benefited from City funds from the liquor store and will almost certainly be re-financed with other City funds.

Alex Marshall Examines Electricty / Internet Parallels

“My answer has been, as it is tonight, to point out these plain principles,” Roosevelt told the crowd. “That where a community -- a city or county or a district -- is not satisfied with the service rendered or the rates charged by the private utility, it has the undeniable basic right, as one of its functions of government, one of its functions of home rule, to set up ... its own governmentally owned and operated service.”

While FDR was referring to electricity in 1932, he could easily be speaking about today's critical need for Internet connectivity. Fortunately for a growing number of people in our country, many local leaders share his sentiments and those communities are investing in community owned telecommunications networks.

Government Technology recently reposted a Governing article by Alex Marshall, a Senior Fellow at the Regional Plan Association in New York City. The Director of our Telecommunications work, Christopher Mitchell, tells me he just bought Alex's new book from a local bookstore and has put it at the top of his reading list: The Surprising Design of Market Economies.

Marshall sees fiber optic connectivity as the utility of today and tomorrow. He explores the question of who should provide access - public institutions or the private market? In his research, Marshall finds that many local communities are not waiting for an "official" answer to that question and are taking control of getting their citizens online.

Marshall spoke with Nick Braden from the American Public Power Association (APPA):

Billy Ray, Community Broadband Pioneer, Joins us For Community Broadband Bits #33

Glasgow was a true pioneer in community owned broadband networks, starting with its own cable plant in the 1980s. Billy Ray, CEO of Glasgow Electric Plant Board, has been an inspiration for municipal broadband networks -- one can't dig into the early history of LUS Fiber in Louisiana without running into something from Billy Ray, for instance. Glasgow's network has been a tremendous success, resulting in tens of millions of dollars of benefits to the community. In our interview, we discuss the bitter legal fights of the early years as Glasgow built its own cable network and eventually began offering Internet access. Additionally, we discuss the important role of these information networks in creating more efficient (and less costly) electrical systems -- an incredibly important implication that does not get enough coverage. Given the extraordinary history of Billy Ray and Glasgow EPB, we hope this will be the first of several conversations exploring that community. You can read more from Billy Ray on his blog. Read the transcript from our call here. Also, we created a video on Glasgow called The Birth of Community Broadband. We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address. This show is 27 minutes long and can be played below on this page or subscribe via iTunes or via the tool of your choice using this feed. Search for us in iTunes and leave a positive comment! Listen to previous episodes here. You can can download this Mp3 file directly from here. Find more episodes in our podcast index. Thanks to mojo monkeys for the music, licensed using Creative Commons.

Community Broadband Bits 12 - Todd Murren with SpringNet, Missouri

The 12th episode of the Community Broadband Bits podcast features an interview with Todd Murren of SpringNet, in Springfield Missouri. SpringNet delivers blazing broadband over Ethernet to businesses in the community. We talk about Missouri's strong restrictions on local authority around broadband and the history of SpringNet. We also discuss how SpringNet has led to hundreds of new jobs in the community from one single employer, to say nothing of the many others. We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address. This show is 30 minutes long and can be played below on this page or subscribe via iTunes or via the tool of your choice using this feed. Search for us in iTunes and leave a positive comment! Listen to previous episodes here. You can download the Mp3 file directly from here. Read the transcript of this episode here. Find more episodes in our podcast index. Thanks to Fit and the Conniptions for the music, licensed using Creative Commons.

Mediacom Says it Will Not Sue Lake County, Minnesota

In Star Tribune coverage of Mediacom's war against real broadband in rural Minnesota, we learn that Mediacom will not sue Lake County to disrupt its plan to serve thousands of unserved residents and local businesses.
And for all its accusations, Larsen says Mediacom will not sue. Spending millions of dollars on a lawsuit in a place where the company serves so few homes, he said, "is not a great business decision."
We have previously covered the many false and disproved accusations Mediacom have leveled against Lake County. The Strib article reiterates that these charges have been found to have no merit. The article also reiterates that the County has a real need that private companies have failed to meet:
The conflict that ensued is part of a national struggle. Public officials and some of their constituents argue that rural broadband is like rural electrification: It's a lifeline for small-town America that the free market will not extend. "We've been ridiculously underserved in this area for years," said Andy Fisher, who owns a Lake County bed-and-breakfast and a rural cross-country skiing lodge. The cable companies "are working in the interest of their profits. But if they're not going to serve this area, what are we going to do?"
And yet, Mediacom sees itself as the underdog!
"Lake County wants to make this into a David and Goliath story, where Mediacom is Goliath and poor little Lake County is David," said Tom Larsen, Mediacom's group vice president of legal and public affairs. "The truth is we're David because we're fighting [the government]. It's just the same story repeated all over the country."
Fascinating. Mediacom has billions in revenues whereas the County deals with budgets in the millions. Sure Mediacom is between 100 and 1000 times bigger than Lake County, it still wants to stop a project serving thousands of unserved people (that it believes is doomed to fail) because it is too disadvantaged.

Court Says Big Broadcasters Can't Stop Aereo's Tiny Antennas

You are surrounded by the radio waves of local television signals. They are available to you for free if you put up an antenna, but there was no easy way to take that free signal and then stream it to all your digital devices. Now there is. Aereo, available only in New York presently, combines an antenna with broadband to transmit television wherever you want it.

Ryan Kim provides the details in a February GigaOm article:

The system works by creating an array of hundreds of thousands of tiny TV antennas the size of a thumbnail and housing them in one data center in a market. When users hook up to Aereo, they take command of an antenna, renting it to get local broadcast channels such as ABC, CBS, Fox and others. They also have access to a cloud-based dual tuner DVR that allows them to initially record up to 40 hours of content.

Customers can view the content on iPads, iPhones, AppleTV, and Roku devices via the web. Rates vary from $1/day to $80/year. The company, backed in part by IAC, aspires to expand nationally.

This is an approach local community networks should follow, particularly those who want to build broadband networks but don't want to get lost in the mind-numbing details of offering a television package.

Needless to say, major broadcasters have gone to the court to stop the ambitious start-up. FOX, the Tribune Company, PBS, Univision, and others, lost their July bid for a preliminary injunction to stop Aereo from rebroadcasting their programming over the Internet. The plaintiffs argued that Aereo violated copyright protections, but Aereo's method does not amount to a copyright infringement according to the court. The individual control over each antenna does not allow sharing of content and does not amount to infringement through public performance.

Staci D. Kramer, from paidContent summed up the judge's rationale for denying the injunction:

What if FiberNet Monticello Had Been Canned in 2008?

Monticello faced a number of key decision moments throughout the history of its FiberNet. Given the recent changes in management and decision not to make up the different between debt service and revenues, some may be wondering if proceeding with FiberNet was the smart decision. It was 2008 and the economy hadn't entered its death spiral. Monticello had overwhelmingly voted by a 3:1 margin for the local government to bond for and build the network. When Monticello was beginning to sell its bonds, the incumbent telephone company (TDS) filed a lawsuit against the City, with the extremely dubious claim that Monticello did not have the authority to do what other cities in Minnesota had done. Courts later tossed it, finding that the TDS suit had no merit and making TDS reimburse Monticello for some of its costs due to the frivolous suit. But the goal was never to win the lawsuit, it was to delay and harass. Monticello had to wait a year to begin building its network. Though TDS had previously maintained that its DSL was just fine for the needs of residents and busineses, it began pulling permits to significantly upgrade its DSL to a FTTH product. (TDS has steadfastly maintained, while investing more in Monticello than any other Minnesota community, that community networks result in less investment from incumbents.) At any rate, Monticello had a decision. It faced an expensive court case and the City's action was apparently driving TDS to improve its poor network. Monticello could have backed down in the face of TDS' bullying. And if it had? From what we have seen elsewhere, this is our best guess: TDS Telecom Logo TDS could have delayed its upgrades or changed its mind entirely when the economy tanked. If it continued with upgrades, it would likely have made some token investments but not lowered its prices because the threat of actual competition was removed.

Monticello FiberNet Attempts to Adapt Business Plan

Monticello, a small community of 13,000 about 40 miles northwest of Minneapolis, built one of the most advanced broadband networks in the midwest and delivers some of the fastest connections available in the state at incredibly competitive rates. The Twin Cities metro area, stuck mostly with Comcast and Qwest, cannot compare in capacity or value. Monticello is fairly rare in the publicly owned FTTH region because it does not have a public power utility and services on the network are provided by a third party, Hiawatha Broadband Communications -- a Minnesota company with an excellent reputation and track record. Unfortunately, Monticello's network suffered costly delays due to a frivolous lawsuit filed by the incumbent phone company in a bid to bleed the publicly owned network while it suddenly invested in its own second generation network (that it previously maintained was totally unnecessary for a small town like Monticello). Monticello lost a full year on the project, which has hurt its finances significantly. More unexpectedly, it has become the only community in North America where all residents have a choice between FTTH networks. They also have Charter in the mix. Add to this the economic downturn that hit just after they financed the network in 2007 -- the population growth has been much lower than forecast. The predictable result? Much lower prices, lots of community savings, and a publicly owned network that is behind its projections. The local paper recently ran a story about the project, "FiberNet struggles in a sea of red. Should you read the full piece, please be aware that the inaptly named "Freedom Foundation" has no credibility, existing solely to defend massive corporations like cable and telephone companies. For those who wonder why incumbents filed absurd lawsuits that have a vanishingly small chance of winning, note this discussion from the story:
“It stopped us from really building the system by about a year,” said Finance Director Tom Kelly, “which put our revenue collections about a year behind.

AT&T Group's Lawsuit in Wisconsin Fails

Yet another court has ruled against an incumbent telephone or cable company that filed a lawsuit to block any threat to their continued monopoly in America's communities. Access Wisconsin, an AT&T dominated trade group, has been trying to stop communities in Wisconsin from building their own next-generation networks to serve schools and libraries that AT&T has long neglected with slow, overpriced, broadband connections. A local judge has dismissed this blatantly anti-competitive attempt to stop communities from building the networks they need.
Wisconsin Independent Telecommunications Systems, operating as Access Wisconsin, sued the UW Board of Regents in July in an effort to stop a $32.3 million fiber optic network to Platteville, Wausau, Superior and the Chippewa Valley region. The lawsuit also named WiscNet, CCI Systems Inc. and the state Department of Transportation. ... The grant — made available through federal stimulus funds — will build high-speed Internet fiber to anchor institutions such as libraries, schools and government, health care and public safety buildings.
A press release from the UW-Extension office that organized the Building Community Capacity through Broadband program, funded by the broadband stimulus program, notes:
“This work by the University of Wisconsin-Extension and our many community partners is vital to the future of the Wisconsin economy,” said Ray Cross, chancellor of the University of Wisconsin-Extension and University of Wisconsin Colleges. “I hope that now government, the university, private businesses and communities in every corner of the state will be able to work together to assure Wisconsin is connected to the global economy.”
Remember that these lawsuits are rarely intended to be won.