public v private

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PSA for Government Haters

An excellent satirical look at those who believe government is the root of all problems. Modern society has many problems that cannot be solved by individuals acting autonomously -- we need to work together to solve them.  "Government" is one of the key entities we use to work together to solve problems. 

The Proper Role of Government in Broadband

I was just reminded of an excellent presentation given by Andrea Casselton back on October 17, 2007, after the Saint Paul Broadband Advisory Committee developed this report. Unfortunately, the city of Saint Paul has not followed through on the fine recommendations of the Committee. As in so many other places, the economic downturn has made public investments more difficult. But not impossible. Good afternoon, I am Andrea Casselton, the Director of the Office of Technology and Communications for the City of Saint Paul. Thank you for holding this important hearing. On behalf of the City of Saint Paul, I would like to present some thoughts on the role of government in broadband policy. As part of my role for the City I acted as chair for the Saint Paul Broadband Advisory Committee which met from August 2006 to July 2007. The committee was comprised of 20 representatives from the community, government, a labor union, non-profits, education, and business associations. Some of the representatives on the BAC were also experts in the field of broadband and wireless technology. Several weeks ago the Committee’s recommendations report was published. My comments borrow heavily from that report. In my opinion, in order to decide whether there is a role for local and state government in the deployment of broadband in the state of Minnesota, we must first decide if we consider broadband to be infrastructure. The American Heritage Dictionary defines infrastructure as: “The basic facilities, services, and installations needed for the functioning of a community or society, such as transportation and communications systems, water and power lines, and public institutions including schools, post offices, and prisons.” For cities, towns and counties to successfully compete in the global economy they must be connected to the world. From harbors to railroads, from highways to airports, infrastructure has historically enabled the exchange of commerce, information, and people.

Steve Jobs: City's Role is Providing Broadband

I cannot help but comment on this story that I have seen in multiple places in the tech press. Steve Jobs, when presenting an impressive new headquarters for Apple, is asked by a City Council member if Apple would provide free Wi-Fi for the city. His reply certainly fits our philosophy:
"I'm a simpleton, I've always had this view that we pay taxes and the city pays to do this kind of thing. Now if we can get out of taxes, I'd be happy to put up Wi-Fi.
Excellent answer. When it comes to broadband, there are absolutely appropriate, strong roles for local governments.

Internet2 President Says Wisconsin Legislation is an Unnecessary Disaster

Internet 2 President H. David Lambert offers some sober words [pdf] to Wisconsin's Governor Walker regarding an 11th hour provision inserted into legislation by AT&T and its telco allies that will kill WiscNet, an essential telecommunications network serving libraries and schools throughout the state. We wanted to note it because it goes beyond WiscNet alone and reminds us that companies like AT&T simply have the wrong incentives to be solely trusted with the future of something as important as ensuring everyone has affordable, reliable, and fast access to the Internet. Dear Governor Walker, Today we write to ask for your leadership in removing sections 23-26 of the University Omnibus legislation. For the United States to be a leader in the global economy, it is critical that government policy does not stifle innovation. One way to inadvertently undermine state and national economic competitiveness goals is to bar those who have been successful in the past from continuing to innovate while creating bureaucratic rules to limit who is eligible to provide services to the marketplace. And, without question, the University of Wisconsin's initiatives and Wisconsin's not for profit Wiscnet have been resounding successes that have changed the lives of citizens in Wisconsin and throughout the world. Draft language Bars Innovation and Reduces Market Choice The University of Wisconsin has long been recognized as one of the critical contributors responsible for the creation of the Internet. It was the University's faculty leaders who championed the idea of interlinked networks over distance and who prototyped those ideas in real-world settings that evolved into the Internet. Even as telephone providers steadfastly argued that the concept of the Internet would fail, faculty leaders at the University of Wisconsin built the large-scale innovation prototypes that led to the development of the global Internet. It would be the height of irony if sections 23-26 of the University Omnibus legislation were passed, as those provisions would prohibit the University from being directly involved in proving out further developments of innovations in the Internet that it helped create.

Asheville Opposes Rep Avila's Attempt to Enshrine Time Warner Cable Monopoly

The continuing saga of H129/S87 in North Carolina has proved at least one thing, Time Warner Cable knows how to pull the puppet strings. The bill was written by Time Warner Cable and pretends to be about creating a level playing field while it effectively outlaws community networks (and some public safety networks) -- much to Time Warner Cable's financial benefits. It remains unclear whether Representative Avila, who is championing this TWC power grab, truly knows what she is doing or is simply ignorant and blindly trusts the TWC lobbyists actually running the show. After Legislators received a torrent of phone calls opposing TWC's bill, Rep Avila promised to negotiate with communities to find some middle ground and ensure the legislation at least grandfathered existing community networks. Instead, she turned the meetings over to TWC to run -- rather than negotiating, they set their terms. She has made multiple public claims about being reasonable but in private, she has made it clear that this is Time Warner Cable's bill. Communities are dead set against this bill, noting the many ways in which it creates unique barriers for their networks while giving a free pass to TWC. Hardly shocking as TWC wrote the bill and is calling the shots via Rep. Avila (whose own district opposes the bill). Now Asheville has passed a resolution against the bill [pdf], fearing its passage would derail their public safety network. The staff report explains why:
The stated purpose of the bills is to protect jobs and promote investment in North Carolina. The mechanism for protection is structured as restrictions on local government on engaging in what governing boards deem to be public-purpose communication and/or broadband projects.

AT&T Pushes to Prevent Potential Broadband Competition in South Carolina

In South Carolina (the state TWC Forgot), AT&T is pushing harsher restrictions on any publicly owned broadband system in an attempt to derail one or more broadband stimulus projects. South Carolina already greatly restricts community broadband networks, likely one of the reasons no incumbent there bothers to upgrade in a similar time frame as the rest of the country. This should be seen a significant overreach -- AT&T is trying to shut down County efforts to improve middle mile access -- whereas most preemption tends to heavily restrict community last-mile networks. This is a whole new world of anti-competitive policy to favor AT&T (not dissimilar from what AT&T wants to do in Wisconsin and Fairpoint did in Maine).
The bills would force Oconee County to follow guidelines as a broadband service provider that would likely cripple the county’s current three-year project to construct 245 miles of broadband cable, county administrator Scott Moulder said. ... Oconee County’s goal is to be a so-called “middle mile” provider, Moulder said, essentially providing a network that would allow private broadband providers to extend their service into areas they aren’t serving. In most cases, those are areas where the private providers have found it is not financially feasible to install their own infrastructure. AT&T, Moulder said, has been asked to be a partner in the project as a retailer, but the company’s current actions are a rebuff.
The Oconee project is meant to attract additional independent service providers to invest in projects, not the County itself. But that hardly matters to AT&T, which wants to preserve the present lack of competition in order to maximize their gains at the public expense. The Bill, S 483 is viewable here and contains the same old tired arguments claiming the public sector has all the advantages.

Whose Internet? NC Communities Should Defend Freedom to Build Networks

Durham's Herald Sun published our op-ed about community broadband networks in North Carolina. Reposted here:

Who should decide the future of broadband access in towns across North Carolina? Citizens and businesses in towns across the state, or a handful of large cable and phone companies? The new General Assembly will almost certainly be asked to address that question.

Fed up with poor customer service, overpriced plans and unreliable broadband access, Wilson and Salisbury decided to build their own next-generation networks. Faced with the prospect of real competition in the telecom sector, phone and cable companies have aggressively lobbied the General Assembly to abolish the right of other cities to follow in Wilson and Salisbury's pioneering footsteps.

The decision by Wilson and Salisbury to build their own networks is reminiscent of the decision by many communities 100 years ago to build their own electrical grids when private electric companies refused to provide them inexpensive, reliable service.

An analysis by the Institute for Local Self-Reliance (http://tiny.cc/MuniNetworks) compares the speed and price of broadband from incumbent providers in North Carolina to that offered by municipally owned Greenlight in Wilson and Fibrant in Salisbury.

Wilson and Salisbury offer much faster connections at similar price points, delivering more value for the dollar while keeping those dollars in the community. For instance, the introductory broadband tiers from Wilson (10 downstream/10 upstream Mbps) and Salisbury (15/15 Mbps) beat the fastest advertised tiers in Raleigh of AT&T (6/.5 Mbps) and TWC (10/.768 Mbps). And by building state-of-the-art fiber-optic networks, subscribers actually receive the speeds promised in advertisements. DSL and cable connections, for a variety of reasons, rarely achieve the speeds promised.

Curbing innovation

RUS Stimulus Program, BIP, Greatly Favored For-Profit Companies with Grants

We are noted critics of federal policies that prioritize subsidies and support for private companies over the public sector (broadly defined to include local government, nonprofits, and cooperatives).  When we analyzed the stimulus rules, we were horrified at the reversal of Congressional Intent, which was clearly to prioritize publicly accountable entities over private entities.

Telecompetitor brings our attention to an RUS report summarizing awards from the BIP stimulus program.  Download the report here [pdf].

As we feared (and previously wrote here), the private sector was heavily prioritized by the Rural Utility Service.  For-profit companies won more awards and received more funds than entities that are structurally accountable to the community.  While we are not opposed to profits per se (we are strong allies with local businesses in the many aspects of our work), the history of private companies owning infrastructure (thereby making the rules) has taught us that communities do best when they have a strong voice over essential infrastructure.

Further, in the rural areas that RUS oversees, networks that are focused on profit have refused to upgrade to modern networks and often offer poor customer service.  Throwing more public money at the private sector is a terrible long-term solution that will require ever larger subsidies over time when policy should encourage self-reliance and a lessening need for subsidies over time.

These charts are snipped from the RUS Report linked to above.

RUS awards by awardee

To communities that seize broadband initiative, benefits flow fast

On November 29, 2010, MPR published our commentary about community broadband. The Twin Cities has slower and more expensive broadband Internet than the nearby town of Monticello. The Twin Cities metro area has a population of 2.8 million and the highest density of people and businesses in the state. So why is our broadband Internet slower and more expensive than that enjoyed by Monticello, population 12,000? Several years ago, the city of Monticello (45 miles northwest of Minneapolis) recognized the increasing importance of reliable, high speed, low cost broadband. After the incumbent telephone and cable companies declined to build the network city leaders had in mind, the community decided to build one itself. Now, FiberNet Monticello offers some of the best broadband packages available in the country, while the Twin Cities is lagging. A new analysis by the Institute for Local Self-Reliance compares the available broadband speeds in Monticello to those available in the Twin Cities metro. In the metro, as in most of the United States, broadband subscribers choose between DSL from the incumbent telephone company (Qwest) and cable broadband from the incumbent cable company (Comcast). Monticello's offerings are faster at every price point, but Comcast appears to offer comparable downstream speeds in the highest tier of service. This apparent equivalence, however, is like comparing dirt roads with interstates. Both are roads that allow you to travel from point A to B, but they have fundamentally different characteristics in carrying capacity and reliability. For a variety of reasons, DSL and cable almost always fall short (and often, well short) of the advertised "up to" speeds, whereas full fiber networks regularly achieve the speeds they promise. In the metro, cable offers most residents the fastest option for broadband, but only one choice of provider. The Monticello network not only created a new choice for its residents, it induced the incumbent telephone company to greatly upgrade its network to remain competitive. Now, Monticello residents can choose between two extremely fast broadband providers, as well as a cable internet connection. The community-owned network may have only been the third broadband option, but it fundamentally changed the market.

Vermonters Angry at Wireless Broadband Stimulus Grant Instead of Fiber Loan

Vermonters are asking some hard questions about the federal broadband stimulus decision to throw money at a wireless network for Vermont rather than loaning money to an organization dedicated to delivering real broadband. Senator Bernie Sanders convened a meeting to discuss the awards toward the end of October.
Senator Bernie Sanders led off his “broadband town meeting” Saturday morning at Vermont Technical College with a ringing affirmation of the need for better broadband coverage in Vermont and the nation. However, nobody in the crowd of nearly 300 people needed to be convinced of that. What they wanted to know was whether a huge new federal grant to a private company was the right way to do it.
VTel, a small private telephone company, received a $116 million grant to build a FTTH network to serve their existing 18,000 footprint as well as a wireless network that is intended to serve the entire state. In contrast, the East Central Vermont Fiber Network (which we have covered previously), applied for a loan to build a FTTH network to everyone in the 24 communities that have joined together to form the network. The ECFiber network would be run by a nonprofit and would repay the loan from revenue generated by selling triple-play services on the network.