Tacoma's Click! network raised prices in 2010 in order to cover increases in retransmission fees for its television feeds. Fees have continually risen for Click! and other networks and, according to Tacoma's News Tribune, will continue to rise. The market is fundamentally broken, with small providers struggling to keep up as sports programming shoots through the roof and companies like Comcast merge with content owners.

In Tacoma, the situation was so bad it led to a fee dispute between KOMO and Click! network that resulted in a channel blackout on the network. The News Tribune pursued document requests early in 2014 to obtain copies of the retransmission agreements at the center of the dispute between the network and KOMO. The documents revealed that agreements with several broadcasters rewarded broadcasters significant increases in retransmission fees. Over a six year period, KOMO's rate increased 416 percent.

In a recent update, the News Tribune reports that the new contracts include yet another significant increase:

New contracts that took effect Jan. 1 show the broadcasters’ fees are rising far faster than inflation.

No fee has increased over the years more than that of Seattle broadcaster KOMO. In 2009, the broadcaster received only 31 cents per month per home from Click. That amount has soared this year to $2.43 — a 684 percent increase.

Had the broadcaster’s fee risen equal to inflation, KOMO would earn only 34 cents per subscriber — or approximately $78,000 for all of 2015.

Instead, the new fee structure will mean Click pays about $561,000 this year. That cost is likely to be passed down to the utility’s 19,250 subscribers.

Chris Gleason, speaking on behalf of Tacoma Public Utilities, said the utility board will now have to consider a 17.5 percent rate increase for 2015. The original plan was to incorporate a 10 percent increase in 2015 and a similar increase in 2016. Four other channels are instituting similar increases:

As the time approached for FCC Commissioners to choose to allow Wilson and Chattanooga to serve surrounding communities, leaders from municipalities with publicly owned networks shared their experiences. Jill Boudreau, Mayor of Mount Vernon, Washington, published her community's experience with their muni in GoSkagit.com. 

As in the recent testimonial from Opelika Mayor Gary Fuller, Mayor Boudreau described how Mount Vernon's network has created a quality of life where high-tech has enhanced local medicine, encouraged new businesses, and created and environment rich with competition.

Mount Vernon's open access network provides infrastructure for nine service providers. Some of these providers offer services only to businesses, while others also serve government, retail providers, and specific industries such as the medical community. Hundreds of public and private customers receive fast, affordable, reliable connectivity through these providers and the city's publicly owned network.

We first introduced you to Mount Vernon in 2013. The community began deployment in 1995 and have added incrementally to the network to serve nearby Burlington and the Port of Skagit. Government facilities, schools, hospitals, and businesses save millions while utilizing top-notch technology. Businesses have relocated to the area to take advantage of the network and enjoy the high quality of life in the relatively affordable area with its abundance of outdoor recreation.

Mayor Boudreau recognizes that Mount Vernon's success may not be easy to come by for every community but believes each should have the ability to decide that for themselves. She writes:

A group of municipal leaders and their private sector small ISP partners submitted an ex parte filing with the FCC today stating that they see no reason to fear Title II reclassification of Internet access. The statement, signed by a variety of towns and providers from different areas of the country is reproduced in full:

Dear Chairman Wheeler,

As a group of local governments and small ISPs that have been working to expand the highest quality Internet access to our communities, we commend you for your efforts to improve Internet access across the country. We are committed to a free and open Internet without blocking, throttling, or discriminating by ISPs.

As local governments and small ISPs, we wanted to ensure you are aware that not all local governments and ISPs think alike on matters like reclassification. For instance, on July 18, 2014, the mayors of New York City; Portland, Oregon; and San Francisco called on you to issue the strongest possible rules to guarantee Net Neutrality. Each of these communities is also taking steps to expand and improve high quality Internet access to their businesses and residents.

Our approaches vary but are already resulting in the highest level of service available because we are committed to expanding high quality Internet access to supercharge local economies and improve quality of life. We have no interest in simply replicating older triple play model approaches. We want to build the infrastructure of the future and we see nothing in the proposed Title II reclassification of Internet access that would hinder our ability to do that. As Sonic CEO Dane Jasper has strongly argued, ISPs that don’t want to interfere with their subscribers’ traffic should expect a light regulatory touch.

We thank you for your leadership during this difficult period of transition. We understand that many of our colleagues have trouble trusting the FCC given a history that has, in many cases, ignored the challenges small entities face in this industry. But whether it has been increasing the speed definition of broadband, or calling for the removal of barriers to community networks, we have been impressed with your willingness to take on powerful interest groups to ensure the Internet remains a vibrant, open platform.

We look forward to working with you to ensure that future rules recognize the unique challenges of small providers and innovative approaches to expanding access.

Sincerely,

Seattleites tired of waiting for incumbents to provide better services, have decided to launch a campaign to establish Internet access as a public utility. In order to get the campaign off to a strong start, the founding group has launched a survey to choose a name.

Seattle has significant fiber resources in place, an electric utility, and strong grassroots support. Unfortunately, incumbent Comcast has been trying to curry favor within City Hall. But given that Seattle has joined Next Century Cities, the City seems focused on exploring all of its options.

When Chris presented in Seattle, he strongly encouraged them to organize a grassroots effort to support a community network. Now, a group of community organizers, artists, tech workers, and students are taking the next step forward because:

A 2014 report by the city found that "nearly 20% of Seattle residents do not have any Internet access.” Entire neighborhoods still lack access to Internet speeds necessary to take part in the modern economy. Without access, residents may not be able to apply for jobs, utilize city websites, finish their homework, operate a small business, display art, shop online, or video chat with a doctor from the comfort of their homes.    

Even those with home access to Internet have too few options. The same city report showed that 45% of residents wanted better prices, and 33% wanted higher speeds than currently offered by the two dominant Internet providers: Comcast and CenturyLink.  

Some of the names they suggest are "Seattle for Homegrown Internet," "Connecting Seattle," and "Seattle's Own Internet." They also offer the chance for participants to offer their own ideas.

Our readers have heard the media murmur around municipal networks steadily grow to a loud hum during the past year. An increasing number of local press outlets have taken the opportunity to express their support for municipal networks in recent months.

In communities across the U.S. letters to the editor or editorial board opinions reflected the hightened awareness that local decisionmaking is the best answer. Support is not defined by political inclination, geography, or urbanization.

Last fall, several Colorado communities asked voters to decide whether or not to reclaim local telecommunications authority hijacked by the state legislature and Qwest (now CenturyLink) lobbyists in 2005. Opinion pieces from local political and business leaders in the Denver Post and the Boulder Daily Camera encouraged voters to support the measures. Downtown Boulder Inc. and the Boulder Chamber wrote:

Clearly a transparent public process is appropriate for identifying the best path to higher-speed infrastructure. One thing is certain. Approving the exemption to State Law 152 is a step in the right direction.

Expensive service, poor quality connections, and limited access often inspire local voices to find their way to the news. Recently, City Council Member Michael Wojcik from Rochester, Minnesota, advocated for a municipal network for local businesses and residents. His letter appeared in the PostBulletin.com:

If we want to control our broadband future, we need to join successful communities such as Chattanooga, Tenn., and Lafayette, La., and create a municipal fiber network. In many cities around the world, residents get 1 gigabyte, bidirectional Internet speeds for less than $40 per month. In Rochester, I get 1 percent of those speeds for $55 per month. I believe if Bucharest, Romania, can figure this out, Rochester can as well.

This week in Community Broadband networks... partnerships, cooperatives, and going-it-alone. For a background in muni networks, check out this recent article from FiscalNote. The article highlights Kansas and Utah's fight for improving beyond the minimum speeds. 

Speaking of minimum, the FCC announced its new "rock bottom" for regulated broadband speeds. Ars Technica's Jon Brodkin reports that despite AT&T, Verizon, and the National Cable and Telecom Association's protests, ISPs that use government subsidies to build rural broadband networks must provide speeds of at least 10 Mbps for downloads.

Rural Americans should not be left behind those who live in big cities, the FCC announcement today said. "According to recent data, 99 percent of Americans living in urban areas have access to fixed broadband speeds of 10/1, which can accommodate more modern applications and uses. Moreover, the vast majority of urban households are able to subscribe to even faster service," the FCC said.

The FCC plans to offer nearly $1.8 billion a year to carriers willing to expand service to 5 million rural Americans. 

This is a step in the right direction, but we are alarmed to see a download:upload ratio of 10:1. People in rural areas need to upload as well as download - our comments to the FCC strongly recommended raising the upstream threshold as well and we are very disappointed to see that remain a pathetic 1 Mbps.

And, from TechDirt's own "who can you trust if you can't trust the phone company department," Karl Bode found that a study by the AT&T-funded Progressive Policy Institute concluded that if Title II regulations were passed, the nation would be "awash in $15 billion in various new Federal and State taxes and fees. Bode writes that the study cherry-picked and conflated data:

This week in community broadband, more communities are adding broadband to the list of essential utilities, and many of them are turning to Chattanooga as a model “gig city.”

As Times Free Press’s Dave Flessner reports, the great thing about Chattanooga's approach is that it’s not just about Internet. In fact, the broadband boom is really an unintended benefit of the city’s cutting edge smart grid, which keeps the city’s lights on and powers the economy as well. 

"What we're going to try to do is bring some of the brilliant people from Warner Bros., Fox, Disney and IBM down here to Chattanooga to help them get their heads wrapped around this notion that you've got to stop worrying about scarcity," [Annenberg Innovation Lab director Jonathan] Taplan said.

Last year, T-Bone Burnett, a Grammy Award winner, performed "The Wild Side of Life" from a Los Angeles studio with Chuck Mead, a founder of the band BR549 who was on stage in Chattanooga.

"They sang a song together over 2,000 miles apart," Taplin said. "That's the power of gigabit Internet. I think we're just beginning to think of the possibilities of what this thing can do."

And Android Authority’s William Neilson Jr. explores the desire for faster connections and more choices.

“Isn’t it amazing how much faster broadband speeds are in parts of the country where there are a number of broadband options available to residents? How many times am I going to write an article detailing a broadband provider telling a city that they don’t need “fast” speeds even though the city is universally angry at their lack of broadband options?”

Of course, we see the product of how increased competition brings better service even more clearly in communities that have municipal networks, not just in Google's Kansas City network. It is an outcome that all communities can achieve if they regain the authority to do so. 

Over the past few months, Chris has been globe trotting to communities giving presentations and learning more about municipal networks across the country. After spending some time in Seattle, he headed to Mount Vernon, Washington to present at the Connect with the World conference on October 9th.

The event took place at Skagit College and included other speakers such as Craig Settles, Susannah Malarkey, and Mark Anderson. The video of his presentation is now archived and available to view.

Mount Vernon has operated its open access fiber network since 1995, serving public facilities and local businesses. We spoke with Kim Kleppe, Information Systems Director, and Jana Hansen, Community & Economic Development Director, in episode 38 of the Community Broadband Bits podcast.

For Chris's presentation, watch the video below.

On October 8th, Chris visited the Emerald City to present his thoughts on a municipal network in Seattle. He was a guest of the Seattle Citizens' Telecommunications and Technology Advisory Board at their Broadband Education Public Forum, cosponsored by Brown Paper Tickets.

Seattle has sought better connectivity for some time and has tossed around the idea of a municipal network. Residents and businesses have expressed their concern and Seattlites are mobilizing. The Seattle Citizens' Telecommunications and Technology Advisory Board is in place to collect input from the community, research, and make recommendations to community leaders. They regularly host experts like Chris to educate the Seattle community as they look for ways to improve affordable access for residents and businesses.

Chris was there for a lunch time event and an evening session. The evening session, titled Exploring Municipal Broadband In Seattle with Chris Mitchell, is now archived and available to view on the Seattle Channel.

We want to thank both Brown Paper Tickets and CTTAB for the opportunity. In particular, Brown Paper Tickets deserves recognition for being a private company taking a leading roll in organizing for better Internet for everyone.

Two events in October will bring Chris and other telecommunications policy leaders to the State of Washington. 

On October 8th, the Seattle Citizens' Telecommunications and Technology Advisory Board is hosting Lunch & Learn: Chris Mitchell on community-owned networks and municipal broadband in Seattle. The free event will be held in Seattle City Hall at noon; you can register online at the website.

There will also be an evening forum, also located in City Hall, that runs from 6:30 - 8:30 p.m. You can still register online for the free evening session, titled Exploring Municipal Broadband in Seattle with Chris Mitchell.

As our readers know, Seattle has pursued better connectivity for some time and the idea of publicly owned infrastructure is not a new idea in the Emerald City. Chris will be presenting his thoughts on the possibility of a municipal network.

The next day, Chris visits Mount Vernon for the Connect with the World event. The October 9th conference focuses on creating a tech friendly environment for economic development, better educational opportunities, and improved healthcare. The full agenda [PDF] is available online and registration is still open. The program runs from 10 a.m. - 3:30 p.m. at Skagit Valley College.

Mount Vernon's open access network provides an infrastructure for several ISPs. The network slashes the community's telecommunications costs and attracts employers in fields such as healthcare, aerospace, and engineering. The network also serves the communities of Burlington and the Port of Skagit.