January 2015

Sens Markey, McCaskill Join Sen Booker's Municipal Internet Bill

Sens Ed Markey (D-MA) and Claire McCaskill (D-MO) signed onto Sen Cory Booker's (D-NJ) Community Broadband Act, which forbids states or local governments from creating a "statute, regulation, or other legal requirement" that bars communities from creating their own municipal broadband network.

"I thank Sen Booker for his leadership introducing the Community Broadband Act, which will support more options in the broadband market and greater local choice," Sen Markey said. Sen McCaskill said, “Large Internet providers too often aren’t willing to offer service in rural America, so this bill ensures local communities can come together to provide their residents with access to the opportunities high-speed broadband offers."

Public Knowledge Supports Sen Booker’s Community Broadband Act

We are grateful that Sen Booker and others are taking a strong lead promoting the ability for localities to choose their own destiny by creating economic development projects for high-speed broadband.

These decisions belong at the local level, and this bill ensures that communities are empowered to make their own decisions about their own tax dollars, and assume their own risk in developing projects. Many local officials turn to public-private broadband partnerships or full public projects as a last resort when incumbent private providers cannot or will not deploy high-speed networks in their communities. This bill recognizes the need to ensure that private broadband providers have a chance to offer services before millions are invested by communities. The bill also promotes transparent public decision-making before these choices are finalized. Broadband deployment is an expensive endeavor, and local voters deserve to know the risks and benefits of projects before their communities commit to them. Most importantly, they deserve the power to choose how to invest in their own economic development.

Raise The Speed Limit: Assuring The Right To Affordable Broadband

[Commentary] The problem with high-speed Internet in the US is not availability or speed, but affordability.

A recent report from the Pew Research Internet Project shows that while 91 percent of the US adults in households with incomes greater than $75,000 per year use high-speed Internet at home, the number drops to 52 percent for those with yearly income below $30,000. This is not surprising. According to a report from the Open Technology Institute, the cost of a 25-50Mbps broadband service in Los Angeles (CA) is $70 or about 2.8 times more expensive than in London (UK). Community-owned broadband, if allowed, could offer an alternative when the market does not generate a healthy level of competition and the new BroadbandUSA initiative can help these services succeed.

This is not the only model, of course. Different countries around the world have taken a number of paths toward available, fast and affordable broadband, with different forms of private/public partnerships and levels of government incentive. Whatever the plan and whoever initiates it, ensuring broadband affordability is long overdue; it is rather urgent.

[Fabián Bustamante is a Professor of Computer Science at Northwestern University]

Municipal broadband: Maximizing the public good or funding a fiber arms race?

[Commentary] Municipal and taxpayer-funded networks have a role to play in ensuring that basic infrastructure is provided in communities eschewed by private providers because of the high average costs per connection and the low likelihood of achieving a fair return on investment. The problem is that municipalities may misinterpret the lack of fiber broadband as a “missing market for investment” when the underlying problem is “missing demand” for fast connections in the first place.

What we’ve observed in the US is not a community-wide expression of demand, but rather an impressive lobbying effort on behalf of a narrow group of individuals searching for local governments (and thus the broader tax base) to subsidize their state-of-the-art Internet connections. As municipalities have poor information about individuals’ willingness to pay, the risk is that the subsidized network could be built long before sustainable demand manifests itself.

[Bronwyn Howell is General Manager for the New Zealand Institute for the Study of Competition and Regulation]

Taking the risk to offer broadband should be a local call

[Commentary] There may be good reasons a municipal utility or local agency shouldn't try its hand at broadband service, a market that's prohibitively expensive to enter. But that decision should be made by local officials, not state lawmakers.

Opponents of municipal broadband argue that many projects have been costly failures and that the ones that succeeded enjoy an unfair advantage over the cable and phone companies they're competing with. They're right about the spotty record, but that just proves any advantage a municipal utility may have isn't enough to guarantee that cities can compete effectively with entrenched cable and telephone companies. Regardless, the decision about whether a local agency should get into the broadband business should be left to the people who bear the risk -- local officials and the people who elect them.

Possible future of broadband Internet already in Wilson

Greenlight, a service provided by the City of Wilson (NC)'s municipal power company, offers gigabit Internet to the county's residents.

Although Greenlight serves customers in six surrounding counties, state rules prohibit the expansion of high-speed network outside of the county of Wilson. Greenlight has filed a petition with the Federal Communications Commission hoping it will overrule North Carolina state law and allow expansion of the service beyond the county boundary. Greenlight is hoping the FCC will make a ruling within a month. If so, it will make high-speed internet more accessible to people in North Carolina because local municipal companies can then compete with corporate Internet service providers.

New group pushes for municipal broadband in Seattle

A group is once again pushing the city of Seattle (WA) to set up municipal broadband service run by cities and regulated much like water or electricity.

"Seattle would be the biggest US city to do this," said Sabrina Roach, who is leading the effort. Her group is still forming and does not yet have a name, but they hope to encourage the city to build a broadband network to expand Internet access while improving speeds and lowering prices. They plan to rollout a campaign in the coming year and urge lawmakers to seriously consider the idea.

A tiny Oregon city has already built its own gigabit Internet

[Commentary] Unlike the Portland (OR) Metro, which has been selected as one of nine cities nationally being considered for Google Fiber, Independence (OR) already has a gigabit-speed municipal broadband network that it built with neighboring Monmouth (OR). This network, which is called MINET, has been in operation for eight years. As more cities start to invest in technology infrastructure to foster economic development and address issues of digital access and inclusion, the efforts of Independence are worth watching.

City Wi-Fi: Fast, Cheap, and No You Can't Have It

[Commentary] City-owned networks have been gaining popularity nationwide as a way to bridge the digital divide between rich and poor, foster competition with cable companies, and provide high-speed internet in underserved areas. But there's one big obstacle to all of this: the telecom industry and its friends in Congress.

Some Republicans have branded municipal broadband as a form of socialism, because it uses public funds to compete with the private sector. They also say that local governments aren't tech-savvy enough to build and maintain their own networks. Like many cities, San Francisco (CA) already has a robust fiber network in place to serve government offices. Rob Vinson, San Francisco’s Chief Marketing Officer, believes that the $1.7 million that the city has spent to outfit its network with public Wi-Fi (not including a $600,000 grant from Google) is totally worth it. "There's absolutely no downside being able to provide access to the Internet, whether you are parking your car or waiting for a MUNI bus," he says. "It's one of those fundamental things. We fill potholes, we clean the streets, and yes, now we provide Wi-Fi. And our citizens expect that."

In this year's Super Bowl, only sure winner is Comcast

From grass turf to the video stream inside your home, Comcast will have a hand in Super Bowl XLIX between the New England Patriots and the Seattle Seahawks. Global Spectrum, part of Comcast-Spectacor and based at the Wells Fargo Center in South Philadelphia, manages the state-of-the-art University of Phoenix Stadium in Glendale (AZ), where 12,000 people are expected to work on game day -- opening the gates for fans, shuttling the Katy Perry halftime show on and off the gridiron stage in the allotted time, and managing security. The Comcast-owned NBC-TV network will broadcast the game for an audience that could top 100 million -- and 20 million subscribers can watch it on Comcast cable-TV and Internet network. The company also will use the popularity of the game to promote the TV Everywhere platform -- that is, watching the game on laptops, desktops or tablets away from the television. With "Super Stream Sunday," NBC will make the streamed game and related Super Bowl shows available for free and without authentication. The event is likely to generate $350 million to $360 million in advertising revenue for NBC and, thus, Comcast, according to industry experts.

[And I, for one, welcome our new network overlords.]