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New Report Dissects "Boondoggle Map"

Usually, we ignore the misinformation released by the Taxpayers Protection Alliance (TPA) but their latest efforts are so shady, we felt it was our responsibility to shine a light on its lack of validity and the organization's credibility. Our report, Correcting Community Fiber Fallacies: Taxpayers Protection Alliance Edition, takes a deeper look at the TAP's most recent attempt, which is filled with errors and a blatant disregard for the truth.

What Is A "Boondoggle" Anyway? This Map!

When we looked deeper, we discovered that TPA’s "Broadband Boondoggles: A Map of Failed Taxpayer-Funded Networks" is more misinformation than map. 

All of the basic errors in the map display a lack of attention to detail; our short report examines the deceitful characteristics of this resource. Our purpose in publishing this report is to caution community leaders and citizens who are investigating publicly owned infrastructure; the TPA is not a credible source.

TPA-sandyUtah.png

One of the more obvious errors: Sandy, Oregon, appears in Utah.

The map is also visually deceiving because it includes 213 communities, but only provides information for 87. Of the 213 on the map, the TPA only label 14 as "failures," which means less than 10 percent of the networks they document fit their own definition of "failure."

Clearly, TPA has proven that it seeks to spread any and all information it can find to discredit municipal networks, regardless of accuracy. Communities, public officials, or staff that research the option of publicly owned networks should review our report if they have ever considered the data in the Boondoggles Map.

Consider the Source

If your community is seeking better connectivity, thorough research will be the foundation of how you proceed. As part of your research, be sure to review the organizations that offer information.

From our report:

Committee Nixes LD 1516 in Maine

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.

Bill To Limit Local Authority Appears In Maine

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.

Islesboro and Rockport: So Near and Yet So Far (On FTTH Vote)

Rockport was the first community in Maine to build a fiber-optic network to serve businesses, but their pioneering initiative will not extend to Fiber-to-the-Home (FTTH). At their annual town meeting on June 15th, the local Opera House was packed as citizens showed up to speak on funding an FTTH engineering and network design study. After an extended debate, attendees voted on the measure and defeated the town warrant to spend $300,000 on the project.

According to the Penobscot Bay Pilot, passions flared as a number of people stood up to explain their vote. Several people in support of the project had previous experience with life after fiber:

Deborah Hall, on the other hand, said she led an effort in another state to take fiber optics to 500 homes. That effort resulted in the fact that the “average resident is now saving 100 dollars every month in getting rid of Comcast.”

She recounted how the fiber optic system already in place in Rockport was a draw for her family to return to live in the town. They improved their Internet on Russell Avenue by personally spending the money to extend the fiber to their home, and consequently “reduced our collective Internet and television bills by $155 a month. That’s over 50 percent.”

Rockport’s youth described their dilemma, living in a place where connectivity was less than adequate:

Thomas R. Murphy said he also grew up in town but said: “I am leaving this town to seek a technology career, and am moving to Austin. I have to do this because we do not have technology in this town.”

He warned that sticking with the status quo, residents were paying a company “to make profits and take profits to shareholders in other places.”

“We can keep our resources here and improve lives of everyone. This is an investment we need to make for our future. Costs can be spread thoughtfully by the town, and we can pay forward to the future of the town.”

Maine Model for Muni Fiber - Dark and Open - Community Broadband Bits Episode 176

An interesting confluence in events in Maine have resulted in what some are calling the "Maine model" of fiber optic networks that are available to multiple Internet Service Providers to encourage competition and high quality services. The CEO of GWI, Fletcher Kittredge, joins us this week to explain this model and where it is currently being implemented. GWI is a local firm, rooted in Maine and focused on delivering high quality services with great customer support. 

It is working with Rockport (which we wrote about here and podcasted on here) and Islesboro (podcast here) as well as others. Fletcher starts by telling us more about Maine's Three Ring Binder network and then goes on describe the dark fiber model, benefits of that approach, and how he thinks about public vs private ownership of the open access physical assets. 

Note: This podcast was posted a day late due to the very poor Internet connectivity at a retreat center in Minnesota. Thanks CenturyLink for a reminder why communities cannot rely on the national carriers to invest in modern infrastructure. 

This show is 22 minutes long and can be played on this page or via Apple Podcasts or the tool of your choice using this feed.

Transcript below.

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

Listen to other episodes here or view all episodes in our index. See other podcasts from the Institute for Local Self-Reliance here.

Thanks to Arne Huseby for the music, licensed using Creative Commons. The song is "Warm Duck Shuffle."

Municipal Networks and Small ISP Partners to FCC: Title II Not a Problem

A group of municipal leaders and their private sector small ISP partners submitted an ex parte filing with the FCC today stating that they see no reason to fear Title II reclassification of Internet access. The statement, signed by a variety of towns and providers from different areas of the country is reproduced in full:

Dear Chairman Wheeler,

As a group of local governments and small ISPs that have been working to expand the highest quality Internet access to our communities, we commend you for your efforts to improve Internet access across the country. We are committed to a free and open Internet without blocking, throttling, or discriminating by ISPs.

As local governments and small ISPs, we wanted to ensure you are aware that not all local governments and ISPs think alike on matters like reclassification. For instance, on July 18, 2014, the mayors of New York City; Portland, Oregon; and San Francisco called on you to issue the strongest possible rules to guarantee Net Neutrality. Each of these communities is also taking steps to expand and improve high quality Internet access to their businesses and residents.

Our approaches vary but are already resulting in the highest level of service available because we are committed to expanding high quality Internet access to supercharge local economies and improve quality of life. We have no interest in simply replicating older triple play model approaches. We want to build the infrastructure of the future and we see nothing in the proposed Title II reclassification of Internet access that would hinder our ability to do that. As Sonic CEO Dane Jasper has strongly argued, ISPs that don’t want to interfere with their subscribers’ traffic should expect a light regulatory touch.

We thank you for your leadership during this difficult period of transition. We understand that many of our colleagues have trouble trusting the FCC given a history that has, in many cases, ignored the challenges small entities face in this industry. But whether it has been increasing the speed definition of broadband, or calling for the removal of barriers to community networks, we have been impressed with your willingness to take on powerful interest groups to ensure the Internet remains a vibrant, open platform.

We look forward to working with you to ensure that future rules recognize the unique challenges of small providers and innovative approaches to expanding access.

Sincerely,

Time Warner Cable Takes Maine Lawmakers to Exclusive Hotel for Lobbying Tryst

Time Warner Cable began lobbying Maine legislators at the dawn of the legislative session, reports the Maine Center for Public Interest Reporting. In January, the cable gargantuan hosted a "Winter Policy Conference" for state lawmakers at the exclusive Inn by the Sea resort. As Maine state leaders contemplate how they can boost connectivity, the incumbents are fueling up the anti-muni misinformation machine.

The Center did not have exact numbers of legislators who chose to accept the invitation to stay overnight, attend the opening dinner, or sit in on the "information sessions" which were all paid for by TWC. Reports range from "about a dozen" attendees at the evening dinner to "30 or 35" attending the information sessions the next day.

Naturally, the event raised red flags:

“If we want good public policy, there’s reason for all of us to be worried,” said utilities expert Gordon Weil, the state’s first Public Advocate, who represented the interests of ratepayers before regulators. Such treatment of legislators is “obviously intended to persuade them by more than the validity of the arguments; it’s intended to persuade by the reception they’re given.”

The Center obtained copies of the information packet from the conference, which included a survey that had legislators questioning its objectivity:

“We see lots of surveys as policymakers and we have to be smart enough to look at what questions are asked,” said [DFL Rep. Sarah] Gideon.

Gideon was bothered by survey questions such as, “Should taxpayer-supported debt be used to build government-owned and operated broadband networks that sell broadband services to the public…where no broadband service currently exists…(or) broadband services are already available?”

“Nobody’s going to say ‘Yes, I want my state to incur debt,’” said Gideon.

Local Voices Show Support for Local Connectivity Options

Our readers have heard the media murmur around municipal networks steadily grow to a loud hum during the past year. An increasing number of local press outlets have taken the opportunity to express their support for municipal networks in recent months.

In communities across the U.S. letters to the editor or editorial board opinions reflected the hightened awareness that local decisionmaking is the best answer. Support is not defined by political inclination, geography, or urbanization.

Last fall, several Colorado communities asked voters to decide whether or not to reclaim local telecommunications authority hijacked by the state legislature and Qwest (now CenturyLink) lobbyists in 2005. Opinion pieces from local political and business leaders in the Denver Post and the Boulder Daily Camera encouraged voters to support the measures. Downtown Boulder Inc. and the Boulder Chamber wrote:

Clearly a transparent public process is appropriate for identifying the best path to higher-speed infrastructure. One thing is certain. Approving the exemption to State Law 152 is a step in the right direction.

Expensive service, poor quality connections, and limited access often inspire local voices to find their way to the news. Recently, City Council Member Michael Wojcik from Rochester, Minnesota, advocated for a municipal network for local businesses and residents. His letter appeared in the PostBulletin.com:

If we want to control our broadband future, we need to join successful communities such as Chattanooga, Tenn., and Lafayette, La., and create a municipal fiber network. In many cities around the world, residents get 1 gigabyte, bidirectional Internet speeds for less than $40 per month. In Rochester, I get 1 percent of those speeds for $55 per month. I believe if Bucharest, Romania, can figure this out, Rochester can as well.

More Muni Fiber Projects in Maine

Local communities in Maine are mobilizing to jumpstart economic development, expand educational opportunities, and improve Internet access. The town of Orono, located near the center of the state, announced earlier this month that it will working with nearby Old Town and the University of Maine to deploy an open access fiber network pilot project in an area they wish to promote as a technology park.

The news highlights connectivity improvements in Maine happening at the local level. In August, Rockport solidified its plans to bring fiber to its downtown with partner GWI. Soon after, South Portland announced a similar partnership with GWI to spur economic development. Sanford and Isleboro [PDF] have commissioned studies.

The Main Campus reports that Orono, Old Town, the University of Maine, and GWI have been in the planning phase for some time, but lacked funding to deploy:

“We tried to be the first on the map [with fiber-optics], but there were too many obstacles. Now we have the opportunity to do something,” said Orono Town Manager Sophie Wilson at last Monday’s Economic Development Committee meeting, where the opportunity was presented.

In early 2012, the town was in talks with Old Town and Maine broadband service provider GWI about connecting the towns and the University of Maine to the Three Ring Binder, an 1,100-mile long highway of fiber optic infrastructure that passes underneath Bennoch Road. In order to take advantage of the opportunity, the towns planned on coming together in a collaborative called Old Town-Orono Fiber (OTO Fiber) and applied for grant funding to go through with the project.

Although they weren’t able to receive the necessary funds in 2012, the town is in a better position this time around.

First Muni Fiber Net in Maine - Community Broadband Bits Episode 115

By building a fiber line to allow some local businesses to get next-generation Internet access, Rockport became the first municipal fiber network in the state of Maine. Town Manager Richard Bates joins us for episode 115 of the Community Broadband Bits podcast. 

We discuss the financing behind the network and their partnership with local Internet Service Provider, GWI, to improve access to the Internet. Bates also explains how they had to ask voters for authorization to use a tax-increment financing approach to paying for the network to spur economic development. Nearby communities have been watching to see what happens.

This show is 15 minutes long and can be played on this page or via Apple Podcasts or the tool of your choice using this feed.

Transcript below.

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

Listen to other episodes here or view all episodes in our index. See other podcasts from the Institute for Local Self-Reliance here.

Thanks to The Bomb Busters for the music, licensed using Creative Commons. The song is "Good To Be Alone."