As part of a growing interest in expanding fast, affordable, reliable Internet access for low-income families at home, the United States Department of Housing and Urban Development (HUD) has proposed a new regulation requiring high-speed Internet infrastructure to be installed in HUD-funded multi-family rental housing during new construction or substantial rehabilitation. While the proposed rule doesn’t require developers to pay for Internet service subscriptions, it is a step in eliminating barriers that low-income families face in obtaining quality, consistent Internet access. Public comments are due July 18, 2016.

The proposed rule covers HUD’s rental assistance and grant programs, including its Section 8 housing assistance program, Supportive Housing for the Elderly and Disabled program, Community Development Block Grant program, and Choice Neighborhoods Implementation Grant program. Families living in multi-family housing can then choose to purchase full-priced Internet access from local providers or utilize other resources in their community, which include federal subsidy programs in addition to other state, local, and charitable programs.

Getting Wired Up

As for the actual infrastructure, several types of Internet access technologies satisfy the requirement. Developers can install either wireless (Wi-Fi, fixed and mobile wireless, satellite) or wired (digital subscriber lines also known as DSL, power lines or BPL, cable lines, or fiber) infrastructure. HUD expects most builders will elect to install wired access because of the rapidly changing nature of wireless technologies.

Additionally, wired access is more likely to provide meaningful competition between several Internet Service Providers (ISPs), lowering costs and improving service quality for multi-family housing residents. In an open access network, ISPs typically lease space on infrastructure owned by another entity rather than owning the physical infrastructure themselves. If HUD's new rule called for an open access model, multiple ISPs could utilize a building’s wired infrastructure to offer services to residents. According to HUD’s estimates, which are detailed in the proposed rule, the average construction costs for wired broadband access in its multi-family housing is approximately $200 per unit.

A new study conducted by two economists from a major banking institution says that municipal broadband networks contribute significantly to helping low income households gain access to banking services.

Major Findings, And Why Does This Matter?

The researchers concluded that access to the Internet is a more significant predictor of access to banking services (specifically, having a bank account) than both race and education level. They found that when low income families get access to Internet service, their likelihood of having access to banking services increases by 10%.

Economists commonly focus on access to banking services as a key indicator of financial inclusion for low income households. A bank account enables basic human stability and prosperity as it facilitates financial planning, paying for recurring expenses, and allays negative effects of unexpected financial shortfalls from traumatic events. Bank accounts also allow individuals to build working capital and financing for small business enterprises.

Financial inclusion is a significant concern not just in developing nations but in some wealthy countries as well. Currently, the U.S. ranks 23rd out of 38 high-income nations on the World Bank’s Global Financial Inclusion Database. 

Municipal Networks: Catalysts For Equal Opportunity

The authors suggest that in addition to directly improving Internet access through better availability, municipal networks improve Internet access by improving local Internet service competition. They note that collaborative efforts between local governments and private industry can also improve Internet access and financial inclusiveness.

Earlier this month, the Santa Monica City Council met to approve rates for the city's Digital Inclusion Pilot Program. The program is already in place, bringing free Gigabit per second (Gbps) Internet access to computers in community rooms in ten affordable housing complexes. The March 1st vote expands the program to offer residents the opportunity to sign up for services in their homes.

According to the Santa Monica Mirror, official monthly rates are set at $69 for 1 Gbps and $360 for 10 Gbps. People receiving Public Assistance will be able to obtain a discount to lower the rates to $48 and $252 per month respectively. An additional FCC Lifeline subsidy for those who qualify will lower the cost further to $38.25 per month for 1 Gbps Internet access. Download and upload speeds are the same.

Staff at the city established the rates for the pilot after studying rates in other markets where Gigabit access is available including Chattanooga, Lafayette, and Google Fiber. In order to support adoption in lower income households, city staff analyzed discounts that typically apply for other utilities and suggested a 30 percent discount for those actively participating in those programs. This approach does not exclude the elderly or households without school age children, one of the criticisms of Comcast's Internet Essentials. The staff report is available at the city website.

The Council approved a resolution, which also included construction funding of $175,000 for the project.

“In a global economy, any competitive edge we can offer our community is a worthy venture,” Gary Carter, Santa Monica City’s Community Broadband Manager told The Mirror.

“Santa Monica is uniquely positioned to collaboratively innovate as a community to fully leverage the technology of a cutting edge fiber optic network.” 

Long Time Coming

If you were not able to attend the #RightToConnect Twitter Town Hall on January 21st, you are in luck. The good folks at the Center for Media Justice campaign have collected some of the most memorable moments at Storify.

In addition to tweets from moderator W. Kamau Bell, memorable tweets from elected officials such as FCC's Jessica Rosenworcel, Mignon Clyburn, and Vermont Senator Bernie Sanders are on file to view. You can also link to stories of participants captured on video and audio and check out research material from organizers and participants. 

In order to accurately describe the struggle endured by those without Internet access, organizers obtained stories from people who know firsthand what it's like. Here is Roxanne from Minneapolis:

As we move forward, universal access to fast, affordable, reliable connectivity must be a priority. Kudos to MAG-Net and partners for bringing this conversation online - the place where it needs to happen but least likely to occur.

On January 21st, join the Media Action Grassroots Network and its partners for the #RightToConnect Twitter Townhall. The event takes place at 3 p.m. EST/12 p.m. PST. The conversation will focus on lifeline and finding ways to bring more low-income families online. MAG-Net and partners will bring together a number of those families with elected officials and advocates pursuing change.

The event will be hosted by comedian W. Kamau Bell, @wkamaubell. Guests will include:

• FCC Commissioner Mignon Clyburn, @MClyburnFCC
• Senator Cory Booker, @CoryBooker
• Van Jones, DreamCorps, @VanJones68
• Panel of Eligible and Current Lifeline Subscribers

RSVP for the event, share the announcement with your friends, and send your questions to angella@mediajustice.org. Check it out, participate, be heard.

At MuniNetworks, we often focus on access to the Internet, but the impact of telecommunication policy extends beyond data. In 2016, families might finally see reasonable prices for phone calls to incarcerated loved ones.

Last October, the FCC voted to close loopholes and cap rates for Inmate Calling Service providers in jails and prisons across the nation. While incarcerated, folks couldn’t choose their long-distance service provider, and the prices these Inmate Calling Service providers demanded could reach up to $14 a minute. Although the FCC had some regulations in place, they did little to prevent add-on fees and service charges. 

These charges proved absurdly expensive for low-income people, disproportionately impacting people of color. As if that wasn’t bad enough, people with disabilities found that the Telecommunications Relay Service (which enables people with hearing or speech disabilities to use the phone) was sometimes considered an add-on. The FCC's decision puts a stop to any extra charge for this necessary service. 

We’ve covered the monopoly power that these providers have over incarcerated folks for some time. In Community Broadband Bits Episode 20, Chris spoke about prison phone justice in more detail with Amalia Deloney of the Media Action Grassroots Network and the Center for Media Justice. Deloney explained the many ways Inmate Calling Service providers exploit incarcerated people and the families.

Four low-income neighborhoods in Madison will soon have access to fast, reliable, affordable Internet access, thanks to a municipal fiber-to-the-home (FTTH) pilot program.

Fast, Affordable, Reliable...Soon!

According to a recent Cap Times article, installation will begin in the spring of 2016; community leaders anticipate the network will start serving residents in the fall. The cost of the pilot is estimated at $512,000. The original plan was to offer the pilot in two areas, but in the City Council recently approved an amendment to the city budget to cover the cost of expanding the pilot. Funds for the construction will come from the city's capital budget.

When the city first released its RFP, it received 3 proposals. Ultimately, the city selection committee chose the only FTTH proposal over two wireless proposals, citing reliability and speed as determining factors. Local Internet service provider ResTech will build the network, which will be owned by the city. Residential subscribers will have access to a minimum 10 Megabits per second (Mbps) download and 10 Mbps upload (symmetrical) service for $9.99 per month. There will be no data caps.

Testing the Waters

The Cap Times reports that the results of the pilot will determine the next steps for the city, population 243,000, which has flirted with the idea of a citywide municipal network in the past:

In conjunction with the pilot, Madison will be pursuing a feasibility study and cost-benefit analysis to determine whether to expand the Internet service to other parts of the city in the future.

The city is working with Columbia Telecommunications Corporation for the feasibility study component as a parallel track to the pilot.

The pilot will be two years, and [Chief Information Officer Paul] Kronberger said they hope to have enough data to do the cost-benefit analysis after about one year of operation.