The open access network in Ammon, Idaho, has been celebrated as visionary and viewed as a potential model for other communities seeking competitive local Internet access markets. A bill in the state legislature, however, aims to restrict local communities' ability to reproduce the Ammon Model, or any other publicly owned network, by imposing new restrictions on local efforts.

Read the text of the bill here.

Removing a Local Funding Option

H 490, introduced by Rep. Ron Mendive from Coeur d'Alene, states specifically that local governments have the authority to take the necessary steps to develop Internet networks and to offer services to the general public. Provisions in the bill that dictate how projects are financed, operated, and managed, however, transform the bill into a "muni killer" says Bruce Patterson, Ammon's technology director.

In a recent Idaho Business Review article (subscription required), Patterson described the language of H 490:

“On its face, it claims to authorize cities to have the authority to finance, build, and operate a communications network and offer a communications service, but each of the restrictions that follow make it impossible for a city to actually do those things. It is like telling your child: ‘Sure, you can play outside, just don’t leave the house.'”

The people of our imaginary community "Villageville" have gathered outside the library, inside the library, and on Grumpy Gary's lawn to talk about the problem of poor local Internet access. Now, they're making it official and letting town leaders know that they want change. It's time for Episode 4 of "From Crops to Co-ops: Small Towns Want Better Internet!"

For the past three weeks, we've seen the good folks of this fictional community grapple with the difficulties that many rural towns face. When local connectivity doesn't keep up with the needs of the community, small towns can't be competitive. In Villageville, entrepreneurs, parents, and people who just want better Internet access have been researching why connectivity in their town is so poor and what are some possible solutions. Now they're ready to take their concerns to local elected officials.

The setting in this episode is a bustling town council meeting, in which locals are gathered to discuss what to do about poor Internet access in Villageville. The special speaker tonight is an attorney from the incumbent Internet access company. Citizens are ready to ask him why, for corn's sake, his employer still hasn't updated the services they provide.

During this episode, we learn more about the influence of large corporations and their lobbyists on competition, or the lack of it. The people of Villageville have noticed some patterns in the way state laws get passed and they're ready to talk about it at the meeting. By the end of the evening, folks are inspired to do more than complain.

In addition to the educational value from this short video, you'll enjoy the campy style of the Very Amateur Acting Troupe of the Community Broadband Networks Initiative and a special guest star from the Insitute for Local Self-Reliance. We've had fun writing, acting, and editing these videos and it shows. As with all "masterpieces," artists have come and gone from the Initiative team, leaving their imprints on "From Crops to Co-ops: Small Towns Want Better Internet!"

If you haven't seen episodes 1 - 3, check them out below, read the backstories or view them all on our Videos page.

An increasing number of local governments around the country have started taking steps to improve broadband adoption and accessibility in their communities. A recent Brookings Institution article discusses the role of states in broadband deployment and adoption and how lawmakers are making efforts, but still have room for improvment.

Special Interest Lobbying Leaves an Imprint

A few states have explicitly banned municipal government from telecommunication services while others have confusing and hard-to-understand laws and regulations. Local governments have stepped up in the best interest of their residents but the imposed barriers have created tension between the local and state governments. Huge players influencing state legislation affecting broadband are the telecom lobbying interest groups. Due to their efforts, 19 states face barriers ranging from blocks to outright bans.

Brookings writes that states are a key factor in expanding high-quality Internet access to citizens and calls for a state-centered approach to improve the situation:

Instead of waiting for the stars to align in Washington, we should focus on states as an important middle ground. States have access to a range of tools and resources—independent of federal action—to promote broadband availability and adoption within their borders. The question is whether they will actually use them.

Specifically, Brookings recommends that states allow local communities to function with local telecommunications authority:

However, there is still more that states can do. Many should reconsider laws that block local efforts to expand broadband access, which limit opportunities to service populations that privately owned broadband networks will not.

On October 21, 2019, The American Conservative published an article by the Institute for Local Self-Reliance's Christopher Mitchell. The article delves into how preemption affected the municipal broadband project in Lafayette, Louisiana. Christopher addresses the fact that many communities that have invested in local Internet networks have done so to fill a void in a manner that is based in self-determination. He also discusses the ways local government strengths lend themselves to the success of municipal networks and how somes states are making changes that may signal a shift in perspective.

We've reproduced the article in full here: 

Fleeced by the Telecoms and Your State is Blessing It

You may live in a place where the monopolies' lobbyists have more authority than your local government.

Joey Durel was not an obvious champion for building a municipal broadband network in his city. He owned multiple private businesses and was the head of the local chamber of commerce prior to becoming mayor of Lafayette, Louisiana, one of the most conservative urban centers in America.

In the early 2000s, like today, the big telephone and cable companies were extremely unpopular. DSL and cable Internet access were growing, but smaller markets like Lafayette always had to wait to get the speed upgrades they saw the larger cities getting. However, Bellsouth (now AT&T) and Cox were not slow to increase prices, which led to obvious customer frustration.

When first presented with the idea of a city-run network, Durel was skeptical but open minded. He looked toward the Lafayette Utility System, which already handled electricity, water, and wastewater for the community—and had a much better reputation than the cable and telephone monopolies—to make an assessment.

Durel soon determined that a city-run broadband network would provide better services at lower prices than Bellsouth or Cox, but he was under no illusion those companies would go quietly into the night. However, he probably didn’t expect such a challenge to his authority—a challenge that went right up to the state legislature to stop him. This was preemption, and Durel was about to get one heck of an education in how monopolies use the levers of government to get what they want.

Federal Communications Commission (FCC) mapping has long been criticized for inaccuracies. Now, state and local initiatives are taking up the challenge of poor broadband mapping and developing ways to create their own maps that better reflect the reality of broadband coverage in their communities. The Georgia Broadband Deployment Initiative (GBDI) recently showcased several county-level maps they’ve developed that provide the detail that FCC maps lack.

Therein the Problem Lies

As experts have noted, FCC data on which maps are based are inadequate because their foundation is based on census blocks. If one premise in a census block can be served by an Internet access provider, that provider will report on the Form 477 that the entire census block is served. In rural areas where census blocks can be very large tracts of land, this can leave many premises indicated as served but actually unserved. 

We developed this graphic to illustrate the issue:

When local communities apply for funding that’s based on the need to connect unserved and underserved premises, they can be disqualified due to incorrect mapping data. For local leaders who need to get their communities connected and expect to apply for grants and loans, FCC mapping can derail their funding and delay or end a proposed project.

This past August, the FCC announced that they will finally take steps to improve mapping and began seeking comments on the new Digital Opportunity Data Collection. Read the announcement [PDF].

Fixing the Maps

In Georgia, the GBDI sought to obtain information on a more granular level to obtain an accurate representation of where residents and businesses need to be connected and where they lack the kind of connectivity they need. 

Update: As of May 25, 2021, only 17 states retained their municipal barriers. Arkansas and Washington have removed theirs.

Municipal broadband networks already serve more than 500 communities across the country, but some states are trying to keep that number from growing. Nineteen states have established legal barriers or even outright bans on publicly owned networks, according to well-respected communications law firm Baller Stokes & Lide.

These state laws, often enacted at the behest of large telecom monopolies, slow the development of community owned connectivity in various ways. From Alabama to Wisconsin, states have implemented everything from direct prohibitions on municipal networks to oppressive restrictions and requirements that limit competition.

The outlook for municipal connectivity may be starting to improve though, despite incorrect reports that state-level broadband preemption increased over the past year. Baller Stoke & Lide’s list of states with restrictions on municipal broadband investment actually shrunk this year from 20 states to 19 — a result of downgrading Colorado’s SB 152 from bonafide barrier to mere annoyance. Still, barriers to community networks remain in more than a third of all states, leaving millions of Americans unconnected and tens of millions more without local Internet choice.

Bans, Blocks, and Burdens

Common approaches to preempting municipal broadband networks range from straightforward bans to confusing financial restrictions and complicated legal requirements. While some states have established one main barrier to community broadband, many more have adopted a bird’s nest of regulations that kill any possibility of municipal connectivity, if only because of the legal uncertainty created by complex and vague laws.