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Three New Companies Move to the Silicon Bayou
In the past few months, Lafayette has drawn in three high tech companies that will create approximately 1,300 well-paying positions. In addition to the community's commitment to boost its high-tech workforce, better connectivity offered by LUS Fiber helped attract the new businesses.
According to a Daily World article, the most recent addition is Perficient, Inc. The information technology and management consulting company is based in St. Louis. Perficient will add 50 new positions by the end of 2015 and another 245 over the next 6 years; average annual salary will be $60,000. The area should also see 248 additional indirect jobs. Perficient leadership intends to recruit from South Louisiana Community College and University of Louisiana at Lafayette.
This past spring, CGI announced it would employ 400 high-tech employees in a new finance facility in Lafayette. CGI will also recruit from the local high-tech educational programs. James Peake from CGI told the Advocate that the company has made an effort to keep tech positions "onshore" rather than sending them overseas. From the article:
CGI Vice President Dave Henderson cited UL-Lafayette’s top-ranked computer science program and Lafayette’s growing workforce and fiber-optic network.
This past summer, start-up Enquero announced it would open a tech center in Lafayette. The Milpitas, California company plans to hire 350 new employees by the end of 2017. City officials also expect to see 354 new indirect positions. According to Bloomberg Business Week, Enquero executives considered New Orleans, Baton Rouge, and four other states.
From City-Parish President Joey Durel's official statement:
Local Tennessee Communities Rally Behind EPB
As the FCC contemplates the fate of the Chattanooga EPB's ability to expand to surrounding communities, some of those Tennessee communities are publicly announcing their support. The Town of Kimball and Marion County, both part of the Chattanooga metro area, have passed resolutions asking state legislators to reconsider Tennessee's anti-muni law.
The Times Free Press reports that Kimball's Board of Mayor and Alderman unanimously and officially asked their state officials to introduce legislation enabling local authority. They requested action as early as the next legisaltive session.
Marion County passed a similar resolution in August - also unanimously. According to Kimball's City Attorney Bill Gouger:
"It is a situation where there are providers out there who would like to extend fiber-optic cable and high-speed Internet-type systems throughout our county," Gouger said. "The simple fact is, right now, our state laws make that really difficult to do, if not impossible."
County Mayor David Jackson is reaching out to the other municipalities in Marion County to increase support. From the article:
High-speed Internet access is "very important" for the entire county, said Jackson.
"It would, hopefully, give us another edge in getting new industry and other businesses to our county," he said. "It [quality Internet access] is very vital. We've got some industries now that are really struggling because they have limited Internet access."
Gouger said commercial and industrial developments are making high-speed Internet access a "requirement" for setting up shop in rural areas like Marion now.
"If we can't get those types of things throughout our county, it's going to disqualify us from some future growth," he said. "That's the whole purpose of this resolution."
The Guardian Visits Chattanooga
The Guardian recently ran an article covering Chattanooga EPB's fiber network. The article tells the story of the birth of the network, the challenges the community faced to get its gigabit service, and how the network has sculpted the community.
Reporter Dominic Rushe, mentioned how the city has faced legal opposition from incumbents that sued to stop the network. They continue to hound the EPB today, most recently by trying to stop the city's FCC petition to expand its services. But even in a fiercely competitive environment, EPB has succeeded. From the article:
The competitive disadvantage they face is clear. EPB now has about 60,000 residential and 4,500 business customers out of a potential 160,000 homes and businesses. Comcast hasn’t upgraded its network but it has gone on the offensive, offering cutthroat introductory offers and gift cards for people who switch back. “They have been worthy competitors,” said [Danna] Bailey,[vice president of EPB]. “They’ve been very aggressive.”
Rushe spoke with Chris:
"In DC there is often an attitude that the only way to solve our problems is to hand them over to big business. Chattanooga is a reminder that the best solutions are often local and work out better than handing over control to Comcast or AT&T to do whatever they want with us,” said Chris Mitchell, director of community broadband networks at advocacy group the Institute for Local Self-Reliance.
A key difference between a Comcast or an AT&T and EPB goes beyond the numbers. Rushe described the artistic renaissance happening in Chattanooga with the help of top notch service from EPB:
The city is making sure schools have access to devices for its children to get online. Fancy Rhino, a marketing and film production firm backed by Lamp Post, has been working with The Howard School, an inner-city school, to include them in the city’s renaissance.
Blackburn and Wheeler: Awkward Penpals
Back in June, some sixty House Republicans led by Tennessee’s Marsha Blackburn sent an open letter to FCC Chairman Tom Wheeler expressing their “deep concern” with his support for community networks. They took issue with comments he made at a House Energy and Commerce hearing in May, indicating his willingness to preempt incumbent-sponsored anticompetitive state laws that handicap or outright ban municipal networks.
In the the views of Rep. Blackburn and her allies, this “sets a dangerous precedent and violates state sovereignty in a manner that warrants deeper examination.” They demanded answers from Chairman Wheeler on a set of eight questions so leading that they would make even the most partisan pollster blush. They featured many of the same “states’ rights,” “unelected federal bureaucrat,” and “unconstitutional authority” talking points used later in the floor debate over Blackburn’s anti-muni amendment, softened up and rephrased just a bit for polite company.
ILSR Statement on FCC Call for More Competition: A Step In the Right Direction
There is little doubt that our readers are aware of Chairman Wheeler's remarks on September 4th at 1776, a start-up incubator in D.C. His message echoed what policy leaders have repeated countless times - competition is lacking in the world of broadband.
Telecommunications has become a popular topic in the past few months as decision makers are discovering that constituents DO care about online access, economic development, and exessive consolidation. ILSR was pleased to see the Chairman address the issue of lack of competition and released the following statement:
The Institute for Local Self-Reliance applauds FCC Chairman Tom Wheeler’s Agenda for Broadband Competition. We feel it is a positive step coming from the nation’s top communications official.
“These gigabit developments are positive, but they are not yet pervasive,” Wheeler said. “Looking across the broadband landscape, we can only conclude that, while competition has driven broadband deployment, it has not yet done so a way that necessarily provides competitive choices for most Americans.”
Wheeler's recognition that Americans lack a true choice in fast, affordable, and reliable Internet access is an important development. If we want real options for next-generation connectivity, local governments must be free to build then own networks.
If there is one thing we have learned from the history of essential infrastructure, it is that local governments must have the option of building and owning it themselves.
“Hundreds of communities have already invested in their own fiber networks, keeping money in the local economy and spurring job growth.” says Community Broadband Networks director Chris Mitchell.
National Journal Traces Growth of Partisanship in Municipal Broadband Debate
In an excellent piece titled “How Republicans Flip-Flopped on Government-Run Internet,” the National Journal outlines the disappointing political evolution of municipal broadband, from a bipartisan local choice issue to an anti-Obama Administration, pro-incumbent telecom, states’ rights issue.
It was not so long ago (2005, to be precise) that three Republican senators (John McCain, Lindsey Graham, and Norm Coleman) joined three Democrats in sponsoring legislation that would enshrine the principle of local choice explicitly in law, preempting anti-muni state laws pushed by incumbent lobbyists. A year later, 215 House Republicans voted for a bill that included a similar preemption provision. In 2007, even more Republican Senators joined McCain and Graham, including Olympia Snowe, Ted Stevens, and Gordon Smith. Their communications bill, including local choice provisions, narrowly missed becoming the law of the land due to fights over unrelated net neutrality issues.
Yet somehow, in 2014, we have the Blackburn anti-muni amendment passing the House floor with nearly unanimous Republican support: 223-200. There are multiple reasons for this, including the generational shift in the Republican Party away from moderates like McCain and towards the more insurrectionist Tea Party. The Journal article also cites the ubiquitous hostility to anything associated with President Obama, even extending to statements made by his nominees at the FCC in favor of federal preemption. Ever greater lobbying spending by cable and telecom incumbents has helped muddy the water for municipal broadband as well.
Yet even some of the same Republicans who once supported local choice now oppose it. Rep. Fred Upton of Michigan, the current and former Chairman of the House Energy and Commerce Committee that handles communications issues, was one of the leading figures in pushing the bill that included preemption in 2006 and 2007. In 2014, he joined his caucus in voting for Blackburn’s amendment to stop such preemption. From the Journal:
An Upton spokesman claimed there's nothing inconsistent about supporting a bill to nullify state restrictions and opposing FCC action that would do the same thing.
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.
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."
Center for Public Integrity Covers Big Telecom Attacks on Munis
The Center for Public Integrity recently published an excellent article worth sharing. In "How big telecom smothers city-run broadband," Allan Holmes describes the money-for-infleunce machine at the state level, connects the dollars, and reveals bedfellows. The article is part of a series investigating the political power of big cable and telecom companies.
If you are a regular at MuniNetworks.org or any other news source covering telecommunications, you are familiar with the renewed push to restore local telecommunications authority that began in January of this year. Holmes provides a little background on the court case that inspired FCC Chairman Wheeler to publicly state that the agency is serious about restoring local authority.
Since those developments, an increasing number of journalists have reported on how we came to have barriers to municipal networks in some 20 states. The revived interest has further revealed that state legislatures are big benefactors of campaign contributions from cable and telecom leaders. "Think tanks" aimed at protecting industry giants and conservative millionaires prove to be at the heart of this payola. Holmes does an excellent job of simplifying the web of political influen$e that dooms millions of people to dial-up, outdated DSL, and aging cable infrastructure.
Holmes follows the story of Janice Bowling, a state senator from Tennessee representing the district that is home to LightTUBe in Tullahoma. When she introduced a bill to allow LightTUBe to expand to serve surrounding communities, she did so because:
…I believe in capitalism and the free market. But when they won’t come in, then Tennesseans have an obligation to do it themselves.
When it appeared the bill might get some traction:
Calls Grow for Community Network in Syracuse
Last week, we noted some comments made by Syracuse Mayor Stephanie Miner indicating her interest in a municipal broadband network and her promise to develop a plan for how to build it. Now it appears others in Syracuse are picking up her refrain.
Two columns appearing recently in the Syracuse Post-Standard offered support for Miner’s idea: one from the paper’s editorial board, and another written by a former Republican candidate for mayor.
Stephen Kimatian, a lawyer and former local TV station general manager, penned an enthusiastic op-ed in favor of Miner’s idea; this despite the fact that he was the Republican candidate for mayor that lost to Miner in 2009. If his Twitter feed is any guide, Kimatian is quite conservative and not a huge fan of Miner’s, but he appears to recognize the nonpartisan advantages of community network ownership:
Connecting broadband throughout the city of Syracuse makes a clear statement that we embrace the 21st century digital economy, we "get" it. The practicality of building a backbone of interconnectivity enables communication between all levels of government and citizens and sets us up for the many more uses to come. It builds a sense of community that we are all connected, from Eastwood to Winkworth, from the Valley to the North Side and that we have a stake in each other's neighborhoods…
Broadband also creates economic equality. Not every home is able to afford broadband and its data usage can be expensive. That means many students don't have the essential research tool of Internet access at home. By providing a common connection, we are putting the less advantaged kids on the same plane as everyone else.
….Broadband should be a utility just like water, gas, electricity and phones.
The Syracuse Post-Standard’s editorial board offered a bit more qualified support, but still lauded Miner’s goals and supported the effort to study broadband deployment:
Ellensburg Considers Muni Fiber Network Expansion
Last year, we covered this central Washington city’s first foray into publicly owned fiber optics. The local incumbent, Charter Communications, began charging the city $10,000 per month for services it had been providing for free for a decade as part of its franchise agreement. Ellensburg officials did some quick math and realized that they could save money building their own network.
They ultimately awarded a contract for $960,000 to build 13 miles of fiber connecting various public facilities throughout the city including the police department and Central Washington University. Thanks to Charter’s high rates, the direct cost savings alone could pay for the entire project in about eight years, leaving aside all the other direct and indirect benefits of public network ownership.
Now, with the original construction project not even quite complete, Ellensburg is already considering expanding to serve residents and the local business community. According to the local Daily Recorder newspaper, the city council has unanimously voted to issue a request for qualifications from contractors for a long term strategic plan.
“Typically, for this type of an activity, (a strategic plan) would include a strengths, weaknesses, opportunities and threats analysis for the telecom utility,” city Energy Services Director Larry Dunbar said. “We would look at different business cases for different service opportunities like providing Internet access to perhaps commercial businesses, perhaps Internet access to the general public. A variety of other service opportunities are possible.”
The new strategic plan is expected to be finished before construction on the current institutional network ends. The construction plan for the institutional network was designed to be “future-ready,” with contingency funds set aside for possible later alterations or expansions. It seems those funds may be tapped sooner rather than later.
The Ellensburg Business Development Authority has been a major advocate of the city’s fiber network, pushing the city to expand it to new areas, offer service to businesses, and look into how it could compete with Charter Communications. As city councilmember Tony Aronica put it: