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Kansas Anti-Competition Bill Authored by Cable Lobbyists

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We learned a lot today about the anti-competition bill (SB 304) in Kansas to limit Internet network investments. Ars Technica's Jon Brodkin discovered the source of the bill, the Kansas Cable Telecommunications Association:
That's a lobby group with members such as Comcast, Cox, Eagle Communications, and Time Warner Cable. The bill was introduced this week, referred to the Committee on Commerce, and scheduled for discussion for Tuesday of next week.
That hearing will now be delayed as the cable lobbyists strategize on a bill that less transparently serves only their interests. As usual, we see the cable lobbyists claiming that municipal networks use taxpayer dollars, despite the reality that most do not. Much of what I see in Kansas points to Time Warner Cable being behind this - a lame attempt to stop Google Fiber using lobbying power rather than innovating and investing. However, the bill has tremendously negative implications for rural Kansas because local governments are often the only entities that care if their communities have the Internet access they need in the modern economy. It stretches credulity to think Kansas would pass a bill that would prevent Google from expanding its network in the region.
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Over the Top Video: A Peak or a Path Forward?

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About six months ago, I was quite bullish on advances in over-the-top (OTT) video making it easier for communities to build fiber networks because they would no longer have to deal with the challenges of securing and delivering traditional cable television channels. I explored these challenges in a recent post. OTT video includes Hulu, Netflix, Apple TV, and similar services that deliver video content over your broadband connection, ideally to your television. Last summer, we were anticipating more devices and services that would expand OTT options. In the time since, I have been disappointed. There have been advances - the Google Chromecast dongle works well (if you have a good Wi-Fi signal near your TV - no ethernet option unfortunately). But Chromecast works with a limited suite of video services. Hulu works well enough, but seems to have fewer shows that I want to watch available on Hulu plus. Also, Comcast owns it and won't always be shackled by the temporary conditions it agreed to in order to secure permission to buy NBC Universal. Aereo continues to be a very interesting model but will be fighting in the courts for awhile yet, creating an air of uncertainty over its future. Additionally, its business model hurts public access media (locally produced content), which often depends on franchise fees that Aereo and broadband providers don't have to pay. On the other hand, Aereo solves the problem of getting sports programming over the top and that is a big deal. We had high hopes for an announcement from Intel that it would begin marketing a service offering television channels over the top but it ran into the steep barriers to entry we have previously noted. Now the Intel effort is dead to us: Verizon has purchased it.
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Meet Russellville, Kentucky's Broadband Speed Leader - Community Broadband Bits Podcast #82

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The municipal electric utility in Russellville has launched Kentucky's first citywide gigabit service on its FTTH network. Russellville Electric Plant Board General Manager Robert White joins us to share their motivations for building a fiber network. The utility had originally offered some telecommunications services over a wireless system but recognized the need for a more robust fiber system, in part because of the lack of investment in modern telecommunications by incumbent cable and telephone providers. Now Russellville has much better options for residents, local businesses, and schools. We expanded on this interview with a mini case study of their network. Read the transcript of our conversation 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 15 minutes long and can be played below on this page or 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 Haggard Beat for the music, licensed using Creative Commons.
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Seattle, Gigabit Squared, the Challenge of Private Sector Cable Competition

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This the second in a series of posts exploring lessons learned from the Seattle Gigabit Squared project, which now appears unlikely to be built. The first post is available here and focuses on the benefits massive cable companies already have as well as the limits of conduit and fiber in spurring new competition. This post focuses on business challenges an entity like Gigabit Squared would face in building the network it envisioned. I am not representing that this is what Gigabit Squared faced but these issues arise with any new provider in that circumstance. I aim to explain why the private sector has not and generally will not provide competition to companies Comcast and Time Warner Cable. Gigabit Squared planned to deliver voice, television, and Internet access to subscribers. Voice can be a bit of hassle due to the many regulatory requirements and Internet access is comparatively simple. But television, that is a headache. I've been told by some munis that 90% of the problems and difficulties they experience is with television services. Before you can deliver ESPN, the Family Channel, or Comedy Central, you have to come to agreement with big channel owners like Disney, Viacom, and others. Even massive companies like Comcast have to pay the channel owners more each year despite its over 10 million subscribers, so you can imagine how difficult it can be for a small firm to negotiate these contracts. Some channel owners may only negotiate with a provider after it has a few thousand subscribers - but getting a few thousand subscribers without good content is a challenge. Many small firms (including most munis) join a buyer cooperative called the National Cable Television Cooperative (NCTC) that has many of the contracts available. But even with that substantial help, building a channel lineup is incredibly difficult and the new competitor will almost certainly be paying more for the same channels as a competitor like Comcast or Time Warner Cable.
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Susan Crawford on Mayors Solving Broadband Needs

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Nilay Patel, founder of tech news site the Verge, offers a nine minute interview with Susan Crawford on how we can improve access to the Internet in the US. Crawford is increasingly focusing on local action, which we have encouraged for years:
Nilay Patel: In this context, to say that you're hopeful about the government doing anything seems extremely foolish. And, you know, I'm an advocate of net neutrality. I enjoyed the book thoroughly. But I have no hope that our government will accomplish any of these goals.

Susan Crawford: Well, there's government, and there's government. I'm totally focused on mayors these days. I've given up on federal policy for the time being.

Patel: But why are you focused on mayors?

Crawford: Because mayors are sovereigns. Mayors can act. They have control over their rights of way. They can say, "We need fiber in our area."

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Charter Prices Inspire Washington City to Consider its Own Network

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Ellensburg, located in central Washington, is considering the pros and cons of a municipal fiber network. A big pro for the community of 18,000 is the ability to predict costs rather than depend on Charter Communications. Charter wants to begin charging $10,300 per month for municipal connectivity it previously supplied at no cost in return for access to the public rights-of-way.

The Ellensburg Daily Record recently reported that the City Council unanimously passed the first reading of an ordinance that will allow the city to establish a telecommunications utility. The city began using Charter's fiber optic network in 1997 as part of the city's franchise agreement. Educational institutions, public safety, and the county public utilities district also use the network. Ellensburg owns and operates its own electric and natural gas utilities. Energy Services Director Larry Dunbar was quoted:

“It’s clearly in the city’s best interest to just build it on its own and own it, compared to leasing it,” he said.

The community needs approximately 15 miles of fiber optic network to replace Charter's institutional network. The two parties are still negotiating and may still reach an agreement for a new contract although the article reports:

In June, Council directed the city to solicit vendor proposals for building a city network, and Dunbar said the city is close to granting the contract.

He declined to share a total cost because contract negotiations are ongoing, but said it makes more sense for the city to build the network now rather than pay in perpetuity, he said.

“A telecommunications network is like a 35-year endeavor,” he said. “If we would have done a lease, we could have bought two or three networks over 35 years.”

Local median KIMA TV recently covered the story:

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All-Pervasive NSA Surveillance Impacts All of Us

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We continue to oppose the federal government's foray into creating a high tech surveillance state where the National Security Agency effectively has unlimited power to spy on Americans. The New York Times has released an op-doc embedded below that offers good reasons all Americans should be concerned, even if most are not doing anything they believe needs to be "hidden."

We previously discussed how community owned networks help to prevent against both corporate and federal government spying in this post.

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NATOA Keynote Panel Discusses Role of Local Governments in Improving Internet Access

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In September, I joined the keynote lunch panel at the annual NATOA Conference to discuss what local governments can do to improve Internet access. Joanne Hovis moderated a discussion between Rondella Hawkins of City of Austin, Milo Medin of Google, and myself.

I have embedded the video below so it starts with the panel discussion. However, if you go back to the beginning, you will also be able to watch the annual award presentations, including one to Longmont in Colorado, as well as Milo Medin's 10 minute presentation prior to this panel discussion.

We discuss many important issues, particularly the various actions local governments can take to either build their own networks or to make the community more tempting to others who might build a network.

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Hilarious Video Compares Fiber to the Home with Fiber to the Node

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Another great video from Australia makes many salient points regarding the debate over their national broadband network. One key point to take away is that it is possible to talk to non-technical normal people about this subject without overwhelming them or boring them.

Another is that FTTN = fiber to the nowhere, not fiber to the node.  

When it comes to building infrastructure, we should make smart long term investments. That said, we are strongly supportive of locally owned, fiber networks. Local ownership trumps national ownership because proximity lends itself to accountability.

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