A recent proposal being considered by the FCC that has raised the loudest outcry has been the status of mobile broadband in rural areas. Now that Verizon is discontinuing rural subscriber accounts, the FCC will be able to see those concerns come to life.

Dear John...

The company has decided to cut service to scores of customers in 13 states because those subscribers have used so many roaming charges, Verizon says it isn’t profitable for the company. Service will end for affected subscribers after October 17th.

Verizon claims customers who use data while roaming via other providers’ networks create roaming costs that are higher than what the customers pay for services. In rural communities, often mobile wireless is the best (albeit poor) or only option for Internet access, so subscribers use their phones to go online.

Subscribers are from rural areas in Alaska, Idaho, Indiana, Iowa, Kentucky, Maine, Michigan, Missouri, Montana, North Carolina, Oklahoma, Utah, and Wisconsin.

In a letter sent to customers scheduled to be cut off, Verizon offered no option, such as paying more for more data or switching to a higher cost plan. Many of the people affected were enrolled in unlimited data plans:

“During a recent review of customer accounts, we discovered you are using a significant amount of data while roaming off the Verizon Wireless network. While we appreciate you choosing Verizon, after October 17th, 2017, we will no longer offer service for the numbers listed above since your primary place of use is outside the Verizon service area.”

Affecting Customers And Local Carriers

Apparently, Verizon’s LTE in Rural America (LRA) program, which creates partnerships with 21 other carriers, is the culprit. The agreements it has with the other carriers through the program allows Verizon subscribers to use those networks when they use roaming data, but Verizon must pay the carriers’ fees. Verizon has confirmed that they will disconnect 8,500 rural customers who already have little options for connectivity.

Philip Dampier at Stop The Cap! writes:

Two and a half years ago, the city council in Ellsworth, Maine, voted to take the first steps toward better connectivity through a publicly owned fiber optic network. On August 29th, the community held a “Lighting Presentation” to kick off the realization of its vision.

Already Serving Businesses

The three-mile open access network is already serving local establishments and the Union River Center for Innovation, but local officials and business leaders gathered with U.S. Senator Angus King for the ceremony to celebrate.

“Connectivity levels the playing field for those of us who are small business owners,” said State Senator and local business owner Brian Langley.

Ellsworth obtained a $250,000 grant for the project from the Northern Border Regional Commission. In addition to approximately $28,000 in tax increment financing (TIF), the city council decided early in the planning process to dedicate $30,000 to the project to extend it an additional mile. Ellsworth obtained additional capital when it sold property that was the site of a former community owned nursing home. In total, Ellsworth contributed $110,000 to the project costs.

Keeping It Local

Ellsworth owns the new infrastructure and Maine’s GWI is using the fiber to provide Internet access to businesses and institutions along the route. GWI, which is also working with other Maine communities like Sanford, Islesboro, and South Portland, is the first of what Ellsworth hopes will be several ISPs to use the infrastructure.

Residents and businesses of Islesboro, Maine, are waiting eagerly to connect to their new Fiber-To-The-Home (FTTH) network this fall. Recently, the community finalized an important step when it signed an agreement with Central Maine Power Company (CMP).

One Piece Of A Larger Plan

In 2016, community leaders were already well into their efforts to bring better connectivity to the island community. They expected to lease poles from CMP to hang fiber, but CMP’s plans to install a new fiber optic line to enhance electric service soon became part of the community network design. The new cable installation was necessary to replace the original 1955 cable to the island and to to serve as a redundant line to a cable that was in stalled in 1992.

Network planners asked CMP to include a fiber line within the 3-mile undersea cable running across the Penobscot Bay. The community will lease CMP’s fiber, which will connect to the wider Internet on the mainland.

“We are delighted with CMP’s cooperation in providing our community with access to their fiber currently crossing Penobscot Bay,” said Islesboro Town Manager Janet Anderson. "This timely and affordable solution allows us to quickly complete our broadband internet system."

The Light At The End Of The Tunnel

Islesboro first began investigating how to improve Internet access on the island in 2012 with a Broadband Working Group. After three years of study, appealing to incumbents, and analyzing options, they decided to invest in publicly owned infrastructure and work with a private provider that will offer Internet access. The community voted to bond for the network, estimated to cost approximately $3.8 million.

The communities of Calais and Baileyville in Maine are joining forces and investing in fiber optic infrastructure. Recently, the city councils in both communities along with the local economic development corporation decided to construct a publicly owned dark fiber network. They’ve also chosen a local firm to construct it.

Dark Fiber

The idea for the project started in 2015 when the Downeast Economic Development Corporation (DEDC) contacted local Pioneer Broadband to discuss ways to improve connectivity. DEDC is a non-profit entity engaged in improving economic development in the region. Calais’s choices for Internet access were limited and some areas out of the city had no Internet access at all. DECD hired Pioneer to develop a feasibility study which would provide suggestions to improve access for both businesses and residents, with symmetrical connectivity a priority.

Pioneer’s study suggested a dark fiber municipal network with connectivity to all premises in Calais and adjoining Baileyville. ISPs will then have the opportunity to offer services to the community via the publicly owned infrastructure. Julie Jordan, director of Downeast Economic Development Corporation said: 

“I’m pleased to say that the Baileyville Town Council, Calais City Council and Downeast Economic Development board of directors have all endorsed this exciting project. We look forward to working with Pioneer and developing results that can dramatically improve service in our towns. With the construction of the fiber optic infrastructure, Calais and Baileyville businesses and residents will have access to state of the art, high speed, reliable internet and these communities will be poised for the jobs of today and tomorrow. Telecommuting options, telemedicine, online education, and media streaming will all be greatly enhanced.”

Along The Border

Last year, Islesboro released a Request for Proposals (RFP) in their search for a contractor to complete Scope A of their Fiber-to-the-Premise (FTTP) network. Now the community is ready to move on with Scope B and recently released a second RFP for Construction Services for Fiber Optic Broadband Infrastructure. Proposals are due July 26, 2017.

Trading In DSL For Fiber

The town’s 600 year-round island population grows to more than 2,000 during the summer. As we’ve reported in the past, Fairpoint DSL serves much of the island, but residents are tired of unreliable, slow Internet access. They’ve decided to invest in publicly owned infrastructure and work with a private provider who will offer services across the community.

The city website describes the project:

The Town of Islesboro is currently constructing a Fiber-to-the-Premise network.  The network will span approximately 50 miles of fiber backbone, 40 miles of fiber drops, and a microwave wireless component connecting outlying islands. The FTTP network will provide universal access to gigabit service for approximately 675 homes and businesses. Construction of the outside fiber plant was previously awarded via a "Scope A" RFP process.  Installation of equipment and services at the premise was previously awarded via a "Scope C" RFP process.  The Town is now conducting a "Scope B" RFP process for the installation and testing of the transport and access electronics housed in the Point of Presence building.  Please see the documents listed below for complete information regarding this Request-for-Proposals.

Important Dates

Notification of Intent to Respond: June 22, 2017

Mandatory Pre-bid Conference Call: June 29, 2017 11:00 A.M. (EDT)

RFP Questions and Answers Conference Call: July 6, 2017

Written questions due: July 13, 2017

Proposals due: July 26, 2017 1:00 P.M. (EDT)

TechDirt - May 4, 2017

Maine The Latest State To Try And Let Giant Broadband Providers Write Shitty, Protectionist State Law

Written by Karl Bode

One of (several) reasons why American broadband is so uncompetitive is the fact that we continue to let giant broadband mono/duopolies quite literally write awful state telecom law. As we've long noted, more than twenty different states have passed laws making it difficult to impossible for towns and cities to improve their local broadband networks -- even in instances when the entrenched duopoly refuses to. Many of these laws even ban towns and cities from entering into public/private partnerships with the likes of Google Fiber. It's pure protectionism.

Maine is the 49th ranked state in broadband speed and coverage -- in large part due to rural markets. Despite countless years of subsidies, broadband providers consistently refuse to seriously upgrade these areas at any scale due to costs. And yet they refuse to let the towns do it themselves, either. State Representative Nate Wadsworth has introduced HP1040, aka "An Act To Encourage Broadband Development through Private Investment." Except like so many of these bills, the proposed law's name is a stark 180 from what the legislative measure actually does.

...

And laws banning municipal broadband -- and especially public/private partnerships -- accomplish the exact opposite of that. And while large ISPs (and their ocean of paid think tankers, economists, and other doller-per-holler professionals) have tried to make this a partisan issue -- the vast majority of municipal networks are built in Conservative areas with broad, bipartisan support. That's because there's one thing we can all agree on: nobody likes the local cable and broadband monopoly.

Today in the Maine Legislature, the Committee on Energy, Utilities and Technology voted unanimously to stop LD 1516, a bill that would restrict local telecommunications authority. After Tuesday's compelling testimony, when it was time for a Wednesday vote, LD 1516’s sponsor moved the bill be shelved.

Engaging Testimony

On Tuesday, May 2nd, the Committee of Senators and Representatives met to listen to testimony on the bill. We’ve provided audio of the public hearing.

South Portland, Islesboro, the Sanford Regional Economic Growth Council, and Rockport all sent experts with knowledge about developing public projects to testify in opposition to the bill. Representatives from GWI (the ISP working with several local communities that have invested in their own Internet infrastructure), the Maine Municipal Association, and the Mayors’ Coalition also testified against LD 1516.

Communities where publicly owned fiber is already improving local connectivity provided stories of how they tried unsuccessfully to work with incumbents. Page Classon from Islesboro described how incumbent proposals could be described as, “You pay for it, we own it, we charge you what we charge everyone else.” LD 1516 requires local referendums for such investments and Classon balked at taking such a proposal to the voters.

In South Portland, the city paid for construction of its open access fiber-optic network with general fund reserves. The language in LD 1516 restricts communities to funding through revenue bonds but South Portland uses its network to offer free Wi-Fi and to improve connectivity for municipal facilities. Under LD 1516, they would not have been able to make the investment.

Rick Bates from Rockport testified that the bill would force municipalities to contend with restrictions that legacy providers will never face and how those restrictions will not solve the problem of connecting rural Maine. Bates also took the opportunity to point out that organizations such as the Taxpayer Protection Alliance relies on misinformation and incorrect data, such as their erroneous assertion that Rockport has debt for its FTTH project.

Earlier this week, we learned that a bill in the Maine House of Representatives had been introduced that would steal local telecommunication authority from communities working to improve their connectivity. LD 1516 / HP 1040 was assigned to the House Energy, Utilities and Technology Committee and is scheduled for a hearing on May 2nd at 1 p.m.

No Barriers...Yet

Maine is a mostly rural state that doesn’t draw much investment from national cable and telephone companies, so in the past few years local folks have started taking steps to improve Internet access for themselves. Their efforts have gotten the attention of the big corporations that fear competition and, since Maine doesn’t have restrictions on municipal networks, it appears to be one of the next targets. Rep. Nathan Wadsworth’s bill imposes a number of restrictions that threaten to derail current or proposed projects to bring better connectivity to several Maine communities. 

The bill is deceivingly titled “An Act To Encourage Broadband Development through Private Investment,” but it will discourage any new investment that may attract new entrants to Maine.

Let Them Know What You're Thinking

If you want to contact members of the committee and tell them that this bill will discourage investment, rather than encourage it, contact information for all the members is available here. The best time to stop a bill is early in committee. If one of these elected officials represents you, be sure to let them know.

Maine is the latest battleground for local telecommunications authority. A bill in the state’s House of Representatives threatens to halt investment in “The Pine Tree State” at a time when local communities are taking steps to improve their own connectivity.

"I Do Not Think It Means What You Think It Means"

Rep. Nathan Wadsworth (R-Hiram) introduced HP 1040; it has yet to be assigned to a committee. Like most other bills we’ve seen that intend to protect the interests of the big national incumbent providers, this one also has a misleading title: “An Act To Encourage Broadband Development through Private Investment.” Realistically, the bill would result in less investment by discouraging a whole sector - local communities - from making Internet infrastructure investment. 

Large national companies have thus far chosen not to invest in many Maine communities because, especially in the rural areas, they just aren’t densely populated. In places like Islesboro and Rockport, where residents and businesses needed better connectivity to participate in the 21st century economy, locals realized waiting for the big incumbents was too big a gamble. They exercised local authority and invested in the infrastructure to attract other providers for a boost to economic development, education, and quality of life.

Not The Way To Do This

If HP 1040 passes, the community will first have to meet a laundry list of requirements before they can exercise their right to invest in broadband infrastructure.

HP 1040 contains many of the same components we see in similar bills. Municipalities are only given permission to offer telecommunications services if they meet those strict requirements: geographic restrictions on service areas, strict requirements on multiple public hearings including when they will be held and what will be discussed, the content and timelines of feasibility studies, and there must be a referendum.

The bill also dictates financial requirements regarding bonding, pricing, and rate changes. Municipalities cannot receive distributions under Maine’s universal service fund.

Better conduit policy and One Touch Make Ready (OTMR) are two approaches seeing the state legislative limelight recently. With local examples to offer guidance, a few state lawmakers are attempting to implement similar rules.

State Governments Follow Local Leads

Local communities know their needs best and are best poised to make local decisions. Some have used new conduit policies like in Mount Vernon, Washington. The community's ordinances require developers to install additional conduit during construction and then deed the conduit to the city. The additional expense is minimal and the additional asset makes the property Fiber-to-the-Premise (FTTP) capable, driving up its value. Developers don't consider the ordinance a burden.

Other communities have passed ordinances for OTMR. When Louisville, Kentucky, adopted OTMR to speed up deployment for new entrants, AT&T sued to stop the city, claiming that the FCC had jurisdiction over such decisions. In October 2016, however, the agency let the parties know that Louisville had opted out of federal pole attachment rules at an earlier date. Nashville, Tennessee, passed OTMR also and has also had to deal with incumbent lawsuits.

The overall goal is to make new networks less time-consuming and resource intensive to deploy. It also keeps communities free of constant construction noise and reduces traffic disruption, thereby improving the quality of life during the deployment. When an approach works on the local level, state lawmakers often want to reproduce it on a broader scale.