
Fast, affordable Internet access for all.
As the Senate version of Missouri's latest anti-muni bill, SB 266 [PDF], moved forward recently, a group of private sector companies and interested organizations appealed to state lawmakers [PDF] urging them to stop it in its tracks.
In January we reported on HB 437, introduced by House Member Rocky Miller. Its Senate companion, which establishes an identical slash and burn strategy to discourage municipal broadband investment, appears to be gathering interest.
The Senate Jobs, Economic Development and Local Government Committee heard the bill on February 18th but chose not to vote on it, reports the Columbia Tribune. Members of the committee received a copy of the correspondence.
Readers will recall that Columbia is one of the many communities that have been actively investigating the possibility of municipal open access network investment. Last fall, Columbia received the results of a feasibility study that recommended the town make better use of its existing fiber assets for economic development purposes.
The letter, sent to Senator Eric Schmitt, Chairman of the Missouri Senate Committee on Jobs, Economic Development, and Local Government, stressed the importance of public private partnerships in the modern economy. SB 266 and HB 437, with their onerous barriers, would certainly discourage private investment in Missouri. From the letter:
As the FCC considers its next move in the question of local telecommunications authority, a growing number of organizations are expressing their official support. The American Public Power Association (APPA) recently passed a resolution supporting the doctrine that local communities should not be precluded by states from investing in telecommunications infrastructure.
The APPA official resolution, approved by members on June 17, urges Congress, the FCC, and the Obama Administration to officially support the ability for public power utilities to provide advanced communications services. The resolution states:
That Congress should state in clear and unequivocal language that it supports the ability of local governments, including public power utilities, to provide advanced communications services that meet essential community needs and promote economic development and regional and global competitiveness.
In a very quick turnaround, a number of prominent companies have signed on to a letter opposing the Kansas bill to block competition for existing Internet providers, like Time Warner Cable. Firms signing the letter sent to the Commerce Committee include Alcatel-Lucent, American Public Power Association, Atlantic Engineering Group, Calix, CTC Technology & Energy, Fiber to the Home Council, Google, National Association of Telecommunications Officers and Advisors, OnTrac, Telecommunications Industry Association, Utilities Telecom Council. The Committee will hear the bill on Tuesday morning. We understand that no recording or live streaming is planned.
Update: When originally posting this, I failed to credit Jim Baller - who organized the letter and works to preserve local authority, so communities themselves can decide whether a network is a wise investment.
“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):
We are engaged in a rare event - we are moving offices. The Institute for Local Self-Reliance pre-dates our initiative and has been in this location for over 20 years. During the packing and sorting, we have encountered a curious collection of treasures.
In keeping with this air of nostalgia, we want to present a report from 2001 by John Kelly, who was Director of Economics and Research at the American Public Power Association at the time he wrote the piece. The title caught our attention but the content kept our interest. We want to pass it on as recommended reading.
"Old Snake Oil in New Bottles: Ideological Attacks on Local Public Enterprises in the Telecommunications Industry" (PDF format) is a critique of a Progress and Freedom Foundation (PFF) report titled "Does Government belong in the Telecommunications Business?" (PDF) Kelly confirms that the arguments and fallacies advanced by the private telecommunications industry and its lobbyists have not changed in 11 years. The past 11 years have also seen the same slanted arguments and the same shaded research that, even after repeatedly being discredited, arise again and again.
The arguments truly are "snake oil." From the report:
One dictionary definition of "snake oil" describes it as "a liquid substance with no real medicinal value sold as a cure-all or nostrum...." This definition aptly describes the content of the PFF report. Its claims are not solid ones and can be easily refuted. Essentially, it views the elimination of government enterprises from the telecommunications industry as a cure-all, or nearly one, for the competitive problems that exist in the industry. This solution has no real value, and is counterproductive; it would exacerbate the problem of a lack of effective competition in the industry. The problem is a lack of effective competition, not public enterprises.