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The Institute for Local Self-Reliance recently submitted comments to the FCC as part of its Protecting and Promoting the Open Internet proceeding. ILSR focused on the issue of paid prioritization, reclassification, and regulation of content. We also provided some examples of municipal networks that provide fast, reliable, affordable service and do not rely on paid prioritization to serve customers.
From the ILSR comments:
The FCC should be extremely wary of any arguments that claim paid prioritization or other discriminatory practices are necessary to increase investment in next-generation networks. These networks are already being built and paying for themselves in both public and private approaches (as well as partnerships mixing the two). ILSR sees no reason to believe any additional revenues gained by discriminatory pricing would be reinvested in improving DSL and cable networks as the largest firms operating these networks generally face little competitive pressure to upgrade. That is the problem, not a lack of revenue in the current model.
Our reading of the various court decisions suggest the only option for the FCC to preserve the open Internet and prevent big cable and telephone companies from tinkering with the established principle of non-discriminatory carriage is reclassification and urge the FCC to take this step. However, we also urge the FCC to take actions to prevent any regulation of content. The FCC should concern itself with the transmission of information, regardless of what that information is, consistent with long-held Internet principles.
The Open Internet proceeding has inspired an estimated 1 million+ comments. The outpouring strained the FCC's system and as a result, the FCC extended the comment period to July 18th.
The full document is available below for download and available on the FCC's electronic filing system.
Last week, the communities of Chattanooga and Wilson, North Carolina, filed petitions with the FCC. Both communities requested that the agency remove state barriers preventing expansion beyond their current service areas. On July 28, the FCC established a public comment calendar for the request. It is imperative that all those with an interest in better access take a few moments to express their support for these two communities.
Opening Comments are due August 29, 2014; Reply Comments will be due September 29, 2014. That means you need to submit comments by the end of this month. If you want to reply to any comments, you can do that in September.
This is a pivotal moment in telecommunications policy. For months municipal network advocates have been following Chairman Wheeler's stated intentions to remove state barriers to local authority. Within the past few weeks, federal legislators - many that rely on campaign contributions from large providers - pushed back through Rep Marsha Blackburn (R-TN). Blackburn introduced an amendment to a House appropriations bill preventing FCC preemption if the amendment becomes law.
ILSR and MuniNetworks.org encourage individuals, organizations, and entities to file comments supporting the people of Wilson and Chattanooga. These two communities exemplify the potential success of local Internet choice. We have documented their many victories on MuniNetworks.org and through case studies on Wilson [PDF] and Chattanooga [PDF].
Since January, when the DC Circuit Court of Appeals suggested the FCC has the authority to preempt state anti-muni laws, local communities have publicly supported the notion. Chattanooga's Electric Power Board (EPB) will join those communities when it petitions the FCC to preempt similar laws in Tennessee, reports The Center for Public Integrity.
Danna Bailey, vice president of corporate communication at EPB recently told The Center:
“We continue to receive requests for broadband service from nearby communities to serve them,” Bailey said. “We believe cities and counties should have the right to choose the infrastructure they need to support their economies.”
Chattanooga, one of the publicly owned networks that have inspired FCC Chairman Tom Wheeler, has proved itself as a strong economic development tool. According to the article:
A day after his meeting with Berke, Wheeler wrote in his blog, “I believe that it is in the best interests of consumers and competition that the FCC exercises its power to pre-empt state laws that ban or restrict competition from community broadband. Given the opportunity, we will do so.”
A number of other communities with municipal networks, or in the process of deploying them, have passed Resolutions that support the FCC:
As the FCC considers the role of local authority in expanding Internet access, FCC Chairman Tom Wheeler is hearing from coalitions opposing state barriers on municipal networks. On July 3, Executive Directors from the National Association of Telecommunications Officers and Advisors (NATOA), the National League of Cities (NLC), and the National Association of Counties (NACo) sent Wheeler a joint letter of support [pdf].
From the letter:
The diversity of cities and counties in America also reflect differing values and needs. As such, Local governments should have the flexibility to address broadband and Internet access in a way that meets the needs of the people they serve.
The importance of Internet choice at the local level has never been more important. In many places in the U.S, locally-driven projects—including innovative partnerships with private sector companies—have demonstrated that local creativity and local authority is a viable means by which new next-generation broadband infrastructure can emerge.
The letter was close on the heels of a parallel Resolution passed by the U.S. Conference of Mayors (USCM) at their June 22nd Annual Meeting. From the final Resolution:
BE IT FURTHER RESOLVED, that the US Conference of Mayors recommends that the FCC preempt state barriers to municipal broadband service as a significant limitation to competition in the provision of Internet access.
[L]ocal communities should have the opportunity to decide for themselves how to invest in their own infrastructure, including the options of working with willing incumbent carriers, creating incentives for private sector development, entering into creative public-private partnerships, or even building their own networks, if necessary or appropriate. ... Communities are often best suited to decide for themselves if they want to invest in their own infrastructure and to choose the approach that will work best for them. In fact, it was the intent behind the Telecommunications Act of 1996 to eliminate barriers to entry into the broadband market and promote competition in order to stimulate more innovation and consumer choice. We urge you and your colleagues to utilize the full arsenal of tools Congress has enacted to promote competitive broadband service to ensure America’s communities obtain a 21st century infrastructure to succeed in today’s fiercely competitive global economy.Signing the letter included Senators Edward Markey, Al Franken, Amy Klobuchar, Richard Blumenthal, and Cory Booker as well as Representatives Mike Doyle, Henry Waxman, and Anna Eshoo. We thank each of them for standing up for local authority. Yesterday, we gave a brief update of what has happened thus far on this issue. This is a very important moment, as so many communities have recognized that at the very minimum, they need a plan for getting next-generation networks. Cable and DSL simply aren't good enough to compete in the modern economy but the big carriers have enough clout in state capitals to push laws limiting competition and enough power in DC to feel confident in their anti-consumer mergers.
Host Gavin Dahl asked Chris about SB 152, the 2005 Colorado statute that constricted local authority and has prevented communities in that state from investing in telecommunications infrastructure. As many of our readers know, the Colorado communities of Longmont, Montrose, and Centennial, have held elections to reclaim that authority under that statute's exepmtion. The two also discussed legislative activities in Kansas and Utah inspired by big cable and telecommunications lobbyists.
The conversation also delved into gigabit networks, network neutrality, the Comcast/Time Warner mergers, legislative influence, the Coalition for Local Internet Choice, and FCC Chairman Tom Wheeler's recent statement about local authority.
In short, this interview packs a tall amount of information into a short amount of time - highly recommended!
You could also read a transcript of the interview here.
In a June 10 Official FCC Blog post, Chairman Tom Wheeler's words show continued resolve to restore local decision-making to communities that want to evaluate their own investments and partnerships. This is the latest in a series of public statements indicating the agency is ready to assert authority and remove barriers to community networks.
If the people, acting through their elected local governments, want to pursue competitive community broadband, they shouldn’t be stopped by state laws promoted by cable and telephone companies that don’t want that competition.
I believe that it is in the best interests of consumers and competition that the FCC exercises its power to preempt state laws that ban or restrict competition from community broadband. Given the opportunity, we will do so.
In April, Wheeler raised a few lobbyist eyebrows in a speech on the role of municipal networks at the Cable Show Industry conference in Los Angeles. In this latest post, he notes that Chattanooga's network transformed it from "a city famous for its choo-choos," into the "Gig City." The network spurs economic development, improves access, and inspires innovation, notes our FCC Chairman.
The National Journal also takes note of the FCC blog post. Its article points out that Wheeler criticizes Tennessee's state law restricting Chattanooga's ability to expand. Even though nearby communities want service from EPB, the City is forbidden from serving them. Not acceptable, says Wheeler.
While the National Journal suggests Tennessee may be the first state to face FCC authority to eliminate state barriers, policy experts have no expectations yet. From the article:
Harold Feld, the senior vice president of consumer advocacy group Public Knowledge, said Wheeler will probably not launch a broad initiative to attack state laws around the country. Instead, the FCC chief will probably wait for groups or individuals to file complaints about specific state laws, Feld predicted.
The UC2B Network and its partner, iTV-3, will soon bring gigabit capabilities to more people in the Champaign-Urbana community in Illinois. According to the UC2B press release [PDF], iTV-3 will expand existing fiber to areas of the community to serve residents and businesses. iTV-3 will take subscriptions for commercial and residential access online at www.theperfectupgrade.com.
In a statement from the FCC, Chairman Tom Wheeler commented:
"Congratulations to Urbana-Champaign Big Broadband (UC2B) and iTV-3 on making gigabit services over fiber available throughout the community. This public-private partnership provides a valuable model for communities and companies throughout the country and a demonstration of the creativity that is stimulated when localities are free to work with the private sector to improve broadband offerings.”
UC2B and the University of Illinois at Urbana-Champaign received American Recovery and Reinvestment Act (ARRA) funds to deploy an urban FTTH network in Illinois. The not-for-profit corporation offered economical Internet service to residential subscribers in economically disadvantaged areas, some as low as $19.99 per month. The network also connected a number of community anchor institutions including schools, hospitals, and municipal facilities throughout the Urbana-Champaign metropolitan area.
According to a fact sheet on the project [PDF], the company is a subsidiary of a family-owned business that started in Springfield, Illinois. iTV-3 has been an ISP since the mid 1990s but also owns and operates over 775 Family Video stores in 19 states and Canada. UC2B chose iTV-3 because the company operates in a manner consistent with the Community Broadband Principles, core values guiding UC2B since inception. iTV-3 will also contribute to UC2B's Community Benefit Fund, established to improve digital literacy and digital inclusion.