Last week, the FCC made history when it chose to restore local telecommunications authority by nullifying state barriers in Tennessee and North Carolina. Waiting in the wings were Rep. Marsha Blackburn and Senator Thom Tillis from Tennessee and North Carolina respectively, with their legislation to cut off the FCC at the knees. [A PDF of the draft legislation is available online.]

Readers will remember Blackburn from last year. She introduced a similar measure in the form of an amendment to an appropriations bill. Blackburn has repeatedly attributed her attempts to block local authority to her mission to preserve the rights of states. A Broadcasting and Cable article quoted her:

“The FCC’s decision to grant the petitions of Chattanooga, Tennessee and Wilson, North Carolina is a troubling power grab,” Blackburn said. “States are sovereign entities that have Constitutional rights, which should be respected rather than trampled upon. They know best how to manage their limited taxpayer dollars and financial ventures."

Thom Tillis, the other half of this Dystopian Duo, released a statement just hours after the FCC decision:

“Representative Blackburn and I recognize the need for Congress to step in and take action to keep unelected bureaucrats from acting contrary to the expressed will of the American people through their state legislatures.”

For Immediate Release: February 26, 2015

Contact: Christina DiPasquale, 202.716.1953, [email protected]

BREAKING: Cable Companies Lose Big at FCC, Barriers to Community Broadband Struck Down

Two southern cities today persuaded the Federal Communications Commission to recognize their right to build their own publicly owned Internet networks where existing providers had refused to invest in modern connections. The 3-2 FCC vote removes barriers for municipal networks in Chattanooga, Tennessee and Wilson, North Carolina, to extend their high-quality Internet service to nearby areas.  

Said Christopher Mitchell, Director of Community Broadband Networks at the Institute for Local Self-Reliance:

“Cable companies lost their bet that millions spent on lobbying to stifle competition was a wiser investment than extending high-quality Internet to our nation’s entrepreneurs, students and rural families. 

“Preventing big Internet Service Providers from unfairly discriminating against content online is a victory, but allowing communities to be the owners and stewards of their own broadband networks is a watershed moment that will serve as a check against the worst abuses of the cable monopoly for decades to come.”

The FCC decision sets an historic precedent for towns working to offer municipal broadband networks in twenty states that have enacted limits or bans on local governments building, owning, or even partnering to give local businesses and residents a choice in high speed Internet access. Three-quarters of Americans currently have either no broadband or no choice of their Internet provider. 

President Obama suggested restoring local telecommunications authority while visiting Cedar Falls in January and a number of local elected officials were ready to back him up. Leaders from 38 members of Next Century Cities recently submitted a public letter to the FCC urging commissioners to consider local autonomy as they consider the Chattanooga and Wilson, North Carolina, petitions.

Last summer, both communities filed with the FCC seeking relief from restrictive state laws that prevent their broadband utilities from serving surrounding communities. FCC Chairman Wheeler has spoken in support of local authority more than once. Next Century Cities, a coalition of communities that was formed specifically to advance better connectivity, writes:

We write only to urge that, as you consider these petitions, you take proper account of the importance of local choice and autonomy. The benefits of high-quality broadband are now beyond dispute: these projects have stimulated local innovation and economic development, enhanced education, improved government services, and opened new worlds of opportunity to communities and citizens. It is our hope that federal policy will support the realization of these outcomes in our communities and in towns and cities across the country, by empowering every community to meet the needs of their residents.

You can read the full letter [PDF] online to see if your elected officials signed on.

The FCC's decision on the petitions is expected in February.

FCC Chairman Tom Wheeler released a statement yesterday supporting the concept of local authority for community broadband infrastructure. Chattanooga and Wilson filed petitions to scale back state restrictions last summer. In his statement, Wheeler officially recommended the Commission approve the petitions. If approved, the petitions have the potential to liberate local communities from state restrictions. 

Along with a number of other organizations that advocate local authority, the Institute for Local Self-Reliance supports Chairman Wheeler who said:

Communities across the nation know that access to robust broadband is key to their economic future – and the future of their citizens. Many communities have found that existing private-sector broadband deployment or investment fails to meet their needs. They should be able to make their own decisions about building the networks they need to thrive. After looking carefully at petitions by two community broadband providers asking the FCC to pre-empt provisions of state laws preventing expansion of their very successful networks, I recommend approval by the Commission so that these two forward-thinking cities can serve the many citizens clamoring for a better broadband future.

Chris Mitchell, Director of the Community Broadband Networks Initiative at ILSR.org and the editor of MuniNetworks.org said:

The Chairman's statement is a breath of fresh air. This approach will allow communities with little or no choice in providers to take control of their own connectivity. When local communities have the authority to invest in publicly owned infrastrucuture without state barriers, more businesses and residents have fast, affordable, reliable Internet access. Even just the possibility of a community network can incent large scale providers to improve their services. We are pleased to see Chairman Wheeler both talk the talk and walk the walk of restoring local decision-making authority.

A statement of support quickly followed from the Georgia Municipal Association:

Chattanooga is a destination of choice for gigabit seekers and advocates for local choice, especially on Tuesday, November 18th. Next Century Cities and the Southeast Tennessee Development District will convene a field hearing titled "Envisioning the Gigabit Future." If you are not able to attend, the event will be live streamed.

Register to stream the event at http://conta.cc/1yRvAjG.

As a reminder, the event will be at The Church on Main in downtown Chattanooga from 9 a.m. - 12:30 p.m. EST.

Speakers will include Mayors, elected officials, and a long list of other local leaders with firsthand experience in bringing high speed access to their communities. 

There is still time to register online to attend.

Next Century Cities and the Southeast Tennessee Development District will host an event on November 18th in Chattanooga entitled "Envisioning a Gigabit Future" at The Church on Main.

The field hearing runs from 9 a.m. to 1 p.m. EST. Participants will hear from panelists who will discuss how and why gigabit infrastructure is quickly becoming a critical component to local community vitality.

From the invitation:

Chattanooga is one of America's first - and leading - truly "gigabit" communities. Although the city's investment and commitment has yielded dividends for the city itself, this is not just an issue of local or parochial concern. The potential for gigabit and next-generation broadband to improve America's communities is a national question, with national implications. 

For example, Tennessee is one of about twenty states that restrict community broadband choice, prompting Chattanooga and Wilson, North Carolina (another such state), to petition the Federal Communications Commission to remove these restrictions so that Chattanooga and Wilson can expand their highly successful networks.

Speakers and panelists will include:

• Mayor Andy Berke, Chattanooga, TN
• Senator Janice Bowling, Tennessee State Senate (16th District)
• Mayor Gary Davis, Bradley County, TN
• Harold DePriest, President and CEO, EPB
• Jonathan Taplin, Director, Annenberg Innovation Lab, University of Southern California
• Tony Perez, Director of the Seattle Office of Cable Communications and President of the National Association of Telecommunications Officers and Advisors
• Aldona Valicenti, Chief Information Officer, Lexington, KY
• Rick Usher, Assistant City Manager, Kansas City, MO
• Beth Jones, Executive Director, Southeast Tennessee Development District

You can register online for the free event.

The Coalition for Local Internet Choice (CLIC) has announced that Christopher Libertelli of Netflix has joined the Board of Advisors. Libertelli joins a group of policy leaders, including ILSR's Chris Mitchell, to advance the rights of local communities to have authority over their own broadband decisions.

From the CLIC announcement:

Mr. Libertelli has been Vice President of Global Public Policy at Netflix since December 2011. During his time at Netflix, he has been a champion for a variety of internet policy issues including efforts to increase competition among internet providers. Prior to joining Netflix, Mr. Libertelli managed Skype’s government relations programs in the U.S., Canada, and Latin America.

Netflix has been a strong and consistent supporter of local internet choice. 

Netflix has been very helpful in advocating for the right of communities to build their own networks if they so choose. They filed comments [pdf] in the Wilson and Chattanooga petitions and have been listing some of the larger municipal networks in their monthly speed rankings. We are very grateful for their assistance in these important matters.

As our readers know, the FCC is currently considering petitions submitted by Chattanooga and Wilson, North Carolina. Both communities want the ability to expand their ability to offer advanced telecommunications services, contrary to existing state anti-muni laws. As we glance through the comments, we notice that ISPs, advocacy groups, and local governments are not the only commenters with a vested interest in the outcome. 

There are also compelling stories from individuals, local businesses, and organizations that are looking for better options. In some cases they have one provider but are unhappy with the service so support municipal network expansion. In other cases, they have dial-up (or no service at all) and are maddeningly close to an EPB or Greenlight connection but state restrictions forbid service to them.

We recently spoke with Joyce Coltrin, owner of J & J Nursery located on the edge of Cleveland, Tennessee, in Bradley County. She is about 32 miles from the heart of Chattanooga but only 3/8 mile from the edge of the EPB fiber optic service area. Her only choice for Internet at her nursery is AT&T dial-up. Joyce tells us:

"I could walk right to it - it is the closest provider and we don't have any broadband access!"

Joyce submitted comments early in the proceedings. She choose to send her comments via snail mail because her email is so unreliable.

For the past 15 years, Joyce and other people in her community have requested better service from AT&T. They were told repeatedly it would be 3 months, 6 months, 9 months until they would get upgrades but it never happened. They finally decided to look for connectivity elsewhere. Joyce and her neighbors approached their electric provider, Volunteer Energy Cooperative, in the hopes that they could work with EPB to bring services to the area. Volunteer and EPB had already discussed the possibility, but when the state law was passed that prevented EPB from expanding, the efforts to collaborate cooled.

The Institute for Local Self-Reliance recently submitted comments on FCC petitions filed by Wilson, North Carolina and Chattanooga, Tennessee. We have been following the proceedings that may prove to be the tipping point in the movement to regain local telecommunications authority.

Our organization collaborated with eight other groups and two D.C. Council Members to provide detailed comments for the Commission's consideration. Our group supplied examples of the benefits munis bring to local communities. In addition to providing connectivity where the incumbents fail to meet demand, our comments point out that municipal networks encourage private investment. We provide concrete evidence of both.

With our partners, we also addressed the fact that state restrictions like the ones in North Carolina and Tennessee are not needed. Local communities must go through a rigorous, transparent process everywhere before investing. State legislative barriers are the product of intense lobbying from the cable and telecommunications giants.

As we point out to the Commission, municipal networks are an important tool to bring ubiquitous Internet access to the U.S.: