policy

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Crap Cable Threatens Cloud Services

For my money, the best headline of last week was "The U.S.'s crap infrastructure threatens the cloud." The rant goes on to explain just how crummy our access to the Internet is.
As a patriotic American, I find the current political atmosphere where telecom lobbyists set the agenda to be a nightmare. All over the world, high-end fiber is being deployed while powerful monopolies in the United States work to prevent it from coming here. Some of those monopolies are even drafting "model legislation" to protect themselves from both community broadband and commercial competition.
He nails a number of important points, including the absurdity of allowing de facto monopolies to write the legislation that governs them. However, Andew Oliver's article is a bit muddled on the issue of "monopoly." I have argued with several people that the term "monopoly" has historically meant firms with large market power, not the more stringent definition of "the only seller" of a good. It is not clear how Oliver is using the term. Because of this confusion, you can come away from his piece with the firm idea that it is primarily government's fault we have a duopoly of crap DSL and less crappy cable. He repeatedly says "state-sponsored monopolies." However, no local or state government may offer exclusive franchises for cable or telecom services and the federal government hasn't officially backed monopolies for decades. This is a key point that many still fail to understand - a majority seem to believe that local governments bless monopolies when local governments actually are desperate for more choices. This is why they fall all over themselves to beg Google to invest in their community or they build they own networks (over 400 communities have wired telecom networks that offer services to some local businesses and/or residents). Poor laws and regulations have helped the massive cable and telephone companies to maintain their status - that is why they spend so much on lobbying and political contributions at all levels of government.

Monticello Fiber Price War Offers Key Lessons for Broadband Competition

Monticello Minnesota may be located 40 miles outside Minneapolis, but it is the center of the planet when it comes to FTTH competition. We have tried and cannot identify another community localed on planet earth with two separate FTTH networks going head to head across the entire community. We have long written about Monticello, most recently to look at hypocritical criticism of the project (which gives me an opportunity to note a similar dynamic in Lafayette, Louisiana). And we have covered the disappointing news that the network has not produced enough revenue to make full bond payments. Short explanation for how Monticello came to be unique in having two FTTH networks: Monticello had poor Internet access from Charter and telephone company TDS. Each refused to invest after local businesses and elected officials implored for better networks. Monticello started building its own FTTH network (Monticello FiberNet) and TDS sued to stop the project while suddenly decided to upgrade its slow DSL to fiber. Lawsuit was tossed out and Monticello finished its network. In most community fiber networks, the DSL provider seems to fade away because it cannot offer the fast speeds of fiber or cable, so the market basically remains a duopoly with the community network replacing the telephone company (which continues to offer cheap, slow DSL to a small number of customers). But in Monticello, Charter and TDS engaged in a price war, which has really hurt the City's ability to generate enough revenue to pay its debt. Price wars are very hard on new market entrants because they have to amoritze the cost of their investment whereas the incumbents often have already done so. This means incumbents can almost always offer lower prices if they are determined to do so. In many communities, we have lacked clear evidence of predatory pricing - that is pricing below the actual cost of service to run competitors out of business. This would violate federal law (if any agency bothered to enforce it).

Prometheus Joins Us to Discuss Community Radio and Internet - Community Broadband Bits Episode 61

The Prometheus Radio Project is an impressive grassroots organization that has successfully opened the radio airwaves to communities after big corporations had effectively locked up unused radio channel for years. Prometheus Policy Director Sanjay Jolly joins us for Episode #61 of our Community Broadband Bits podcast. Our conversation ranges from the recent history of pirate radio to the many years of actions and organizing that led to the 2010 Local Community Radio Act. Local groups have an opportunity this fall to apply for licenses to broadcast - a capacity that would well complement a community owned Internet network. The struggle for community radio has many parallels to community owned Internet networks, particularly the right of people to communicate without a few massive corporations acting as gatekeepers, mediating our broadcasts. Additionally, community radio advocates had to fight through years of junk science and misinformation hiding the plain fact that powerful broadcasters simply didn't want to face competition from locally owned stations. Seems familiar. Read the transcript of this episode here. We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address. This show is 20 minutes long and can be played below on this page or subscribe via iTunes or via the tool of your choice using this feed. Listen to previous episodes here. You can can download this Mp3 file directly from here. Find more episodes in our podcast index. Thanks to Break the Bans for the music, licensed using Creative Commons.

We Need Video Reform, Let D.C. Know What You Think

Time Warner Cable subscribers across the country who enjoy CBS programming are out of luck. The two media giants have reached an impasse in their fight over retransmission consent so several major markets are now missing out. CBS has also taken the fight one step farther, blocking TWC broadband subscribers from accessing CBS.com video content.

Public Knowledge as launched a campaign to end this viewer lock-out. From their recent call to action:

It doesn't matter whether CBS or Time Warner Cable is the bad guy here. The only one losing here is you, the viewer.

Some members of Congress are standing up to the media giants. The bipartisan "Television Consumer Freedom Act," [PDF] co-sponsored by Senators John McCain and Richard Blumenthal, takes the first steps at fixing this mess.

But an army of special interest lobbyists likes things the way they are, and they don't care that you are caught in the middle. For this bill to move forward, your members of Congress need to hear from you.

For more detail on how we got here, read Harold Feld's recent Policy Blog on the PK website. PK makes it easy for you to inform your D.C. represenation that you want video reform. 

You can also look up your U.S. Representatives and your U.S. Senators to contact them directly via phone or email.

Jim Baller Discusses Municipal Broadband History - Community Broadband Bits Episode #57

Jim Baller has been helping local governments to build community owned networks for as long as they have been building them. He is the President of and Senior Principal of the Baller Herbst Law Group in Washington, DC. Jim joins us for Episode #57 of the Community Broadband Bits podcast to discuss some of the history of community owned networks. Jim has a wealth of experience and helped in many of the most notable legal battles, including Bristol Virginia Utilities and Lafayette. We start by noting some of the motivations of municipal electric utilities and how they were originally formed starting in the late 19th century. But we spend the bulk of our time in this show focusing on legal fights in the 90's and early 2000's over whether states could preempt local authority to build networks. In our next interview with Jim, we'll pick up where we left off. If you have any specific thoughts or questions we should cover when we come back to this historical topic, leave them in the comments below or email us. You can learn more about Jim Baller on his website at Baller.com. Read the transcript from this episode here. We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address. This show is 30 minutes long and can be played below on this page or subscribe via iTunes or via the tool of your choice using this feed. Search for us in iTunes and leave a positive comment! Listen to previous episodes here. You can can download this Mp3 file directly from here. Find more episodes in our podcast index. Thanks to Break the Bans for the music, licensed using Creative Commons.

Verizon Plans to Abandon Copper Wires In Islands Damaged by Sandy

Victims of Sandy are still recovering from the killer storm that ripped through the east coast last year. Two places hardest hit by the "Frankenstorm" were Fire Island, New York and the Barrier Island in New Jersey. In addition to homes and property, residents lost phone and Internet communications when telephone wires went down. They are still waiting to be reconnected.

Our readers know about the huge fight that has embroiled consumer advocates and the leading telephone providers in the past few years. AT&T and Verizon seek deregulation to escape the "carrier of last resort" obligation that requires maintenance of traditional copper lines for telephone service. AT&T and Verizon want to shed that responsibility in favor of wireless service that is less expensive to maintain, even though it does not support the range of uses today's copper networks do. 

Verizon is the incumbent telephone provider in Fire Island and Barrier Island but decided it will not repair damaged lines. It wants to instead deploy its inferior Voice Link wireless service on the island.

The Voice Link technology basically attaches to your house and uses Verizon's cellular network to connect the telephones in your home. Homeowners can continue to use their home phones, but the quality tends to be worse than on a proper wired telephone network. 

Under federal law,  telephone providers are obligated to replace or repair downed copper lines unless they substitute with a "line improvement," such as fiber-optic lines. Voice Link cannot be described as a "line improvement" - the only benefit it provides is that it costs Verizon less to build and maintain. 

Smart Conduit Policy in Sandy, Mount Vernon Reduces Network Cost

More communities now embrace "dig once" policies to facilitate installation of future and current networks. The idea is to be mindful of trenching for transportation and utility projects and encourage collaboration between agencies. However, this is implemented in a variety of ways, some more effectively than others. By establishing requirements for conduit installation in development codes, communities can save big dollars if they build or expand a network in the future.

Communities such as Sandy, Oregon, and Mount Vernon, Washington, have instituted such policies. Both communities require private developers to install conduit when disturbing existing roads or building roads for new subdivision construction. Conduit itself is inexpensive and the digging is already done, so the added burden is light.

Both of these communities have plans, including maps, that allow them to be strategic in where they require conduit to be placed. They are not simply adding conduit blindly, though that policy may be better than doing nothing at all (experts are divided on the matter).

In Sandy, the code change (see Sec. 17.84.60) was a simple expansion of existing policy. The city added "broadband (fiber)" to the list of public facilities, such as public water, sanitary sewer, and storm drainage. Underground communication lines join a list of other required improvements that are to be installed in new developments at no expense to the city. Other items on that list include drainage facilities, mailbox delivery units, street lights and a underground power lines. (see Sec. 17.100.310).

Anticipated connectivity raises the value of new homes and makes them more attractive to today's buyers. Scott Lazenby, City Manager in Sandy, spoke to us for a recent podcast and told us how a developer in the area is excited about the potential. SandyNet plans to offer 100 Mbps Gbps residential service via the new conduit at an incredibly low $40 per month; the developer sees that as a major selling point.