Since we alerted our audience to the shenanigans surrounding Missouri’s HB 2078, a couple of other news medias have picked up the story and reported on the dramatic end of session climax. As we rest in the glow of the denouement, we want to provide a follow up for those who may have missed the final outcome and offer some words from Jim Baller, who was deep in the trenches.

Here's What Happened...

If you have not yet heard, the language from HB 2078 was ultimately not adopted by the Missouri State Legislature. Whew. Readers probably recall that, when HB 2078 stalled on its own, the author of HB 2078, Rep. Lyndall Fraker slipped some of the more damaging language into SB 765, a traffic ticket bill that had nothing to do with municipal networks.

Fortunately, advocates of municipal networks had been able to educate Members who were part of the appropriate conference committee. Those elected officials decided to remove the language from SB 765 before final passage. Anti-muni Members also attempted to amend the language into a third bill, HB 1912, which concerned county buildings. The sponsor of the amendment then turned around and chose to strip out the language that began in HB 2078 from his amendment, once he learned that its inclusion would have sparked a filibuster and killed the entire amendment.

A Tough Fight That Isn't Over

Jim Baller, the nation’s leading telecommunications attorney who was directly involved with defeating the bill told Communications Daily:

Rural electric cooperatives have decades of experience in providing essential services. Now several are looking to improve Internet access in unserved and underserved regions. In central Missouri, Barry Electric Cooperative and Co-Mo Cooperative have already started by providing Fiber-to-the-Home (FTTH) Internet service. Another Missouri electric co-op, Callaway Electric Cooperative, is also getting into the business.

The co-op’s subsidiary, Callaway Electric Service, aims to offer FTTH in Callaway County and has teamed up with the local telephone co-op’s subsidiary, Kingdom Technology Solutions. Together, they will operate the partnership as Callabyte Technology.

Increasing Speeds and Access

Callabyte Technology will offer symmetrical Internet access speeds (i.e. the same upload and download speed). They will also offer telephone and video service as a triple-play package. Their “basic” speed is 100 Megabits per second (Mbps), four times faster than the FCC’s current download speed for the definition of broadband (25 Mbps download and 3 Mpbs upload). Prices are competitive:

• $65 for 100 Mbps
• $75 for 500 Mbps
• $95 for a Gigabit (1000 Megabits) per second

In the fall of 2015, they began a pilot project in a small section of Callaway Electric Cooperative’s service area, which took place in the Stonehaven Subdivision near Fulton, Missouri. Telecompetitor reported that the project had a 50 percent take rate. 

Sharing Expertise and Profit

The direct assault stalled but now anti-muni legislators in Missouri are going for the flank.

If The Bill Ain't No Good...

In February we learned about Missouri bill HB 2078, the latest legislative attack on municipal networks. Since our story, it has passed through the House committees on Utility Infrastructure and the Select Committee on Utilities. The bill seems to have lost momentum since mid-March but its sponsor, Rep. Lyndall Fraker, is taking another approach to make sure his bill gets passed, come hell or high water. Session ends May 13th, so he is now banking on procedural tricks, rather than the substance of his legislation.

On May 2nd, when a bill relating to traffic citations, SB 765, came before the body, Fracker proposed to amend it with language from HB 2078. Some of the amended language is even more destructive than the original proposal in HB 2078. 

SB 765 had already passed the Senate with a 32 - 0 vote.

Advocates in Missouri report that, even though a number of Democrats wanted to strike the language as not germane to the substance of the bill, the Republican leadership presiding over the session would not recognize them so they could not move to strike the amendments. Fraker’s amendments were passed by only four votes, even though the House is controlled by an overwhelming majority of Republican Representatives. 

Now, SB 765 goes back to the Senate for further approval after the Fraker amendments. Considering the outcome in the House, it's possible that an expression from voters can influence the ultimate outcome of this bill. This is the time when a phone call to your elected official can change the course of connectivity.

Express Yourself

If you don’t know who represents you in the Senate or House, you can use the Missouri Legislator Lookup to obtain names, phone numbers, and email addresses. You can also contact the sponsors of SB 765 and explain how you feel about amendments that do not relate to the substance of their bill and urge them to clean up their legislation by striking the amendments themselves.

A Missouri electric cooperative has set out to bring fast, affordable, reliable connectivity to its members. Barry Electric Cooperative began deploying its Fiber-to-the-Home (FTTH) network on February 1st throughout Barry County. 

Barry Electric Cooperative is on track to enact its 5-year fiber network plan, mixing aerial and underground deployment, in eight phases. To manage the operation, the cooperative has created a subsidiary called goBEC. 

Fiber in the Sky and Under the Feet

goBEC’s manager JR Smith explained to the Cassville Democrat:

"Our plan is to give every BEC member the availability to high-speed broadband service by installing a fiber optic cable directly into each home and business. That will be close to 1,100 miles of fiber."

Although a daunting task, goBEC already has a head start. It’s already overcome two recurring hurdles in the deployment of new fiber networks: Rights-of-Way regulation and utility pole access. Barry Electric Cooperative owns all the utility poles and has access to the necessary Rights-of-Way for the project. While underground deployment can protect fiber optic cable from squirrels and storms, connecting the cables to utility poles can speed-up network deployment. The cooperative will bury some fiber underground when necessary, but its service territory is large. goBEC wants to move quickly to get members connected ASAP so will bury and hang fiber.

Co-op members have been asking for better Internet access since 2010, and the cooperative hopes to have the first phase completed by late Fall 2016. They will offer triple-play (phone, TV, and high quality Internet access). All speeds are symmetrical, so speeds are the same on the download and the upload.

The co-op plans to make the most of the new speed enabled by FTTH. From the Democrat:

Smith said pricing is not yet available, but the lowest Internet service package will be 250 megabytes per second, and there will be broadband Internet service offered.

"That is 250Mbps up and 250Mbps down, he said. "Our highest Internet package will be 1 [gigabyte per second].

Dear Readers: Since I first wrote this story with my attempt to analyze this bill, I have revisited my earlier interpretation. If you read this bill analysis before, you will notice some changes.

It is starting to become an annual pilgrimage to Jefferson City. Each year, House and Senate leaders on the telecom industry dole, introduce the same anti-competition bill.

This year the bill we are watching is HB 2078 in the House, yet another AT&T bill. We briefly introduced you to it in January when we requested you call Republican Representative Lyndall Fraker and the other Members of the House Utility Infrastructure Committee. Fraker is Chair of the Committee, often an indication that the committee will hear the bill.

AT&T donated $20,000 to the House Republican Campaign Committee, reports Ars Technica. Even though the check was deposited on February 15, 2016, Ars learned it was actually donated in September 2015, before session began. Regardless of when the money was donated, it is notable that AT&T contributed a total of $62,500 to political committees in Missouri, a place where the incumbent does not shy away from flexing its lobbying influence.

Last year, HB 437 was introduced and, after opposition from a number of private entities and public sector representatives, stalled in the House. Many of HB 437's anti-competitive characteristics are resurrected this year in HB 2078.

There are many things we don't like about this bill because it forces local governments to hold expensive referendums, dictates how they spend local revenue, and decrees cryptic rules that discourage partnerships with private providers.

"Competitive Services"

If you pay attention to state laws affecting municipal networks in Missouri, you are experiencing an unsettling feeling of deja vu right now. On January 7, Representative Lyndall Fraker introduced HB 2078, a bill much like last year's Senate anti-muni bill. Fraker is Chair of the House Utility Infrastructure Committee, where  the bill is now awaiting a hearing, so it has a good chance of being heard sooner rather than later. 

Your Phone Call Required! 

Time to call Members of the Committee, especially if any of them represent you, and let them know that you expect them to vote against this bill. It is anti-competitive, opposed to local authority, and prevents new investment. Bad bill! 

Preventing Partnerships to Maintain The Status Quo

This bill would not only make it extremely difficult for local communities to invest in publicly owned Internet networks, but would complicate and delay public-private partnerships. A number of communities across the country already own infrastructure and are exploring ways to partner with private providers who want to use it to serve schools, businesses, and residents. If a community wants to lower telecommunications costs or obtain better services, this legislation would have them first jump through a series of obscure, expensive, and cryptic hoops. This legislation creates barriers that serve no purpose except to erect hurdles that discourage local communities from finding better providers.

In the spring, we reported on a public private partnership agreement between the community of Carl Junction and Wi-Fi provider Aire Fiber. According to City Administrator, Steve Lawver, the City Council had second thoughts and pulled out of the deal.

Even though the partnership has ceased to be an option, the people of Carl Junction will still have better connectivity. Aire Fiber found the interest level was so intense that it will independently deploy the equipment to serve the community's 5.6 square miles and approximately 7,400 people.

As part of the abandoned partnership agreement, the city would have paid for and provided locations to mount necessary equipment. Aire Fiber would have handled installation, management, and technical aspects needed to keep the network up and running. In exchange, the city would have received 10 percent of the gross revenue from the network. The system would have cost an estimated $400,000 - $450,000 to deploy and both entities estimated just 10 percent of the market would have allowed them to break even.

Now the city has typical water tower lease agreements with Aire Fiber. Each tower mounting Aire Fiber equipment brings in $100 per month. 

Carl Junction has been searching for better Internet access for its businesses, schools, and residents for several years. In 2012 they commissioned a feasibility study and decided in 2013 to move forward with plans for a fiber network. Unfortunately, the community had to seek other options when it chose not fund the $5.2 million project.

As a post mortem, Lawver advises other city officials to take the time to educate elected officials and not rush the process, especially when the time comes for final approval. 

Our process from FTTH feasibility to this final agreement took 4 or 5 years.  Be patient. Understand that if you get down to the final agreement there is a good chance you may be the only person left that remembers the whole process.

Parts of rural central Missouri have some of the fastest Internet service available thanks to fiber service from Co-Mo Electric Cooperative and United Electric Cooperative. The two have worked together to bring gigabit FTTH to cooperative members in central Missouri. Now that they have proven that people and businesses want high capacity connectivity, CenturyLink is about to enter the scene. The company plans to use millions of dollars in Connect America Funds (CAF) to build in areas already served by the cooperatives.

After years of planning and hard work, Co-Mo and United are not taking the threat lightly. They have filed challenges with the Wireline Competition Bureau but CenturyLink's Inside-the-Beltway power has thus far served them well. The Wireline Competition Bureau denied a challenge by Co-Mo and United but the decision appears to contradict established policy. Co-Mo and United recently appealed to the FCC asking them to review the Bureau's Order allowing CenturyLink to use over $10 million in CAF. [Read the Application for Review here.]

CenturyLink argues that Co-Mo and United are not providing voice services because they are working with a third party, Big River Telephone Company, to bring VoIP to members. If this were true, it could disqualify them as providers and lend credence to the argument that there are census blocks in the area that are not served. Because Co-Mo and United install, take phone orders for subscribers, and service phone switches, they should qualify as a provider of land line voice services. 

CenturyLink also asserted that census block information showed areas unserved even though those areas now have access to fiber connectivity from Co-Mo and United. General Manager of Co-Mo Connect Randy Klindt told us that the timing of their build prevented Co-Mo from providing an active customer in each block, but that service is available to people who live there. Even though it is not a requirement, Co-Mo and United now have detailed information that prove people in those census blocks can, and do, take FTTH service.

Carl Junction has been looking for a way to improve connectivity in its southwest corner of the state for several years. Plans for a fiber network did not come to pass, but the community has found a private partner to bring ubiquitous high-speed Wi-Fi to town.

The City Council voted unanimously to approve a deal with Aire Fiber, reports the Joplin Globe, for a basic plan that will offer service for $49.99 per month. Users will not be constrained by data caps, speeds will be up to 50 Mbps download and 10 - 15 Mbps upload, and the network will provide service to each address in town. Installation is $99 per address; rates will be the same for businesses and residences. There are no long term committments. The partners have launched their campaign to get signups online seeking 289 subscriptions to get the project off the ground.

Aire Fiber will also provide free Wi-Fi to select locations in town such as the Community Center.

Steve Lawver, Carl Junction City Administrator, told us that the city will receive 10 percent of the gross revenue from the network. The city will purchase the equipment and provide facilities on which Aire Fiber will mount the equipment. Air Fiber will handle installation, management, and all technical aspects required to keep the network up and running.

If the network picks up 10 percent of the market, both partners will break even. KOAM reports that the system will cost from $400,000 - $450,000 to deploy. City officials expect to have it serving the community by mid-summer.

Even though AT&T and MediaCom both have a presence in Carl Junction, neither serve the entire community. City leaders told KOAM they hope to create better consistency of service throughout the community with this partnership:

"We think this is a big step forward for the city — now high-speed broadband Internet connection will be available to all citizens of Carl Junction, no matter what their address is.''