California Legislators have turned on their constituents living in rural areas who want to participate in the 21st century online economy. What began as a move in the right direction - allocating substantial resources to funding high-speed Internet infrastructure - has become another opportunity to protect big incumbents. It’s twice as nice for Frontier and AT&T, because they will be paid big bucks to meet a low Internet access bar.

Discretionary Fund

Democrat Eduardo Garcia, the main author on Assembly Bill 1665, represents the Coachella Valley, a rural area in the southern area of the state near Palm Springs. Democrat Jim Wood coauthored with eight others. Wood represents coastal areas in the northern part of the state, which was passed during the eleventh hour of the 2017 legislative session. Wood’s district and region has obtained several grants from the California Advanced Services Fund (CASF) that have helped to improve local connectivity. 

The CASF is much like CAF; both programs are funded through a surcharge on revenue collected by telecommunications carriers from subscribers. Since 2007, when California authorized the CASF, the legislature has amended the rules and requirements several times. Early on, CASF awards went primarily to smaller, local companies because large corporations such as AT&T and Frontier did not pursue the grants. Now that those behemoths have their eyes on CASF grants, they’ve found a way to push out the companies who need the funds and have shown that they want to provide better services to rural Californians.

AB 1665 allocates $300 million to Internet infrastructure investment and an additional $30 million to adoption and related local programs. Policy experts have criticized the legislation on several fronts. Consultant Steve Blum told CVIndependent:

The incumbents (large corporate ISPs) including AT&T, Frontier and the California Cable and Telecommunications Association jumped in and said, ‘We want the bill to be X, Y and Z.’ … Assemblymember Eduardo Garcia took it and started adding language that reflected the desires of these cable and telephone company incumbents.

California Legislators have turned on their constituents living in rural areas who want to participate in the 21st century online economy. What began as a move in the right direction - allocating substantial resources to funding high-speed Internet infrastructure - has become another opportunity to protect big incumbents. It’s twice as nice for Frontier and AT&T, because they will be paid big bucks to meet a low Internet access bar.

Discretionary Fund

Democrat Eduardo Garcia, the main author on Assembly Bill 1665, represents the Coachella Valley, a rural area in the southern area of the state near Palm Springs. Democrat Jim Wood coauthored with eight others. Wood represents coastal areas in the northern part of the state, which was passed during the eleventh hour of the 2017 legislative session. Wood’s district and region has obtained several grants from the California Advanced Services Fund (CASF) that have helped to improve local connectivity. 

The CASF is much like CAF; both programs are funded through a surcharge on revenue collected by telecommunications carriers from subscribers. Since 2007, when California authorized the CASF, the legislature has amended the rules and requirements several times. Early on, CASF awards went primarily to smaller, local companies because large corporations such as AT&T and Frontier did not pursue the grants. Now that those behemoths have their eyes on CASF grants, they’ve found a way to push out the companies who need the funds and have shown that they want to provide better services to rural Californians.

AB 1665 allocates $300 million to Internet infrastructure investment and an additional $30 million to adoption and related local programs. Policy experts have criticized the legislation on several fronts. Consultant Steve Blum told CVIndependent:

The incumbents (large corporate ISPs) including AT&T, Frontier and the California Cable and Telecommunications Association jumped in and said, ‘We want the bill to be X, Y and Z.’ … Assemblymember Eduardo Garcia took it and started adding language that reflected the desires of these cable and telephone company incumbents.

Another addition to our Community Networks Initiative resources! This fact sheet details the most important aspects of the Connect America Fund (CAF) Auction. What is it? What should it do? Who does it affect? And how can you make a difference?

The Federal Communications Commission (FCC) manages the CAF program, which provides billions of dollars in subsidies to Internet service providers for areas where the cost of building networks is prohibitive. Some large providers decided not to accept some of the subsidies during Phase I - about $198 million annually for 10 years. Now, the FCC plans to host an auction so that providers can submit competing proposals on how best to serve these often rural, high-cost areas. (Check out the map of preliminary areas on the FCC website.)

Before the FCC can hold an auction though, the commission needs advice on how best to conduct it and what criteria they should consider. Jon Chambers, former head of the FCC's Office of Strategic Planning and Policy Analysis, outlined his concerns about the current proposed rules in his article, The Risk of Fraudulent Bidding in the FCC Connect America Fund Auction. Listen to his analysis on Episode 268 of the Community Broadband Bits Podcast.

The first round of public comments has passed, but reply comments are due October 18th, 2017. Read the fact sheet and then submit your own comments at FCC.Gov/ecfs/filings for "Proceedings" Docket 17-182 and Docket 10-90.

Another addition to our Community Networks Initiative resources! This fact sheet details the most important aspects of the Connect America Fund (CAF) Auction. What is it? What should it do? Who does it affect? And how can you make a difference?

The Federal Communications Commission (FCC) manages the CAF program, which provides billions of dollars in subsidies to Internet service providers for areas where the cost of building networks is prohibitive. Some large providers decided not to accept some of the subsidies during Phase I - about $198 million annually for 10 years. Now, the FCC plans to host an auction so that providers can submit competing proposals on how best to serve these often rural, high-cost areas. (Check out the map of preliminary areas on the FCC website.)

Before the FCC can hold an auction though, the commission needs advice on how best to conduct it and what criteria they should consider. Jon Chambers, former head of the FCC's Office of Strategic Planning and Policy Analysis, outlined his concerns about the current proposed rules in his article, The Risk of Fraudulent Bidding in the FCC Connect America Fund Auction. Listen to his analysis on Episode 268 of the Community Broadband Bits Podcast.

The first round of public comments has passed, but reply comments are due October 18th, 2017. Read the fact sheet and then submit your own comments at FCC.Gov/ecfs/filings for "Proceedings" Docket 17-182 and Docket 10-90.

Another addition to our Community Networks Initiative resources! This fact sheet details the most important aspects of the Connect America Fund (CAF) Auction. What is it? What should it do? Who does it affect? And how can you make a difference?

The Federal Communications Commission (FCC) manages the CAF program, which provides billions of dollars in subsidies to Internet service providers for areas where the cost of building networks is prohibitive. Some large providers decided not to accept some of the subsidies during Phase I - about $198 million annually for 10 years. Now, the FCC plans to host an auction so that providers can submit competing proposals on how best to serve these often rural, high-cost areas. (Check out the map of preliminary areas on the FCC website.)

Before the FCC can hold an auction though, the commission needs advice on how best to conduct it and what criteria they should consider. Jon Chambers, former head of the FCC's Office of Strategic Planning and Policy Analysis, outlined his concerns about the current proposed rules in his article, The Risk of Fraudulent Bidding in the FCC Connect America Fund Auction. Listen to his analysis on Episode 268 of the Community Broadband Bits Podcast.

The first round of public comments has passed, but reply comments are due October 18th, 2017. Read the fact sheet and then submit your own comments at FCC.Gov/ecfs/filings for "Proceedings" Docket 17-182 and Docket 10-90.

Another addition to our Community Networks Initiative resources! This fact sheet details the most important aspects of the Connect America Fund (CAF) Auction. What is it? What should it do? Who does it affect? And how can you make a difference?

The Federal Communications Commission (FCC) manages the CAF program, which provides billions of dollars in subsidies to Internet service providers for areas where the cost of building networks is prohibitive. Some large providers decided not to accept some of the subsidies during Phase I - about $198 million annually for 10 years. Now, the FCC plans to host an auction so that providers can submit competing proposals on how best to serve these often rural, high-cost areas. (Check out the map of preliminary areas on the FCC website.)

Before the FCC can hold an auction though, the commission needs advice on how best to conduct it and what criteria they should consider. Jon Chambers, former head of the FCC's Office of Strategic Planning and Policy Analysis, outlined his concerns about the current proposed rules in his article, The Risk of Fraudulent Bidding in the FCC Connect America Fund Auction. Listen to his analysis on Episode 268 of the Community Broadband Bits Podcast.

The first round of public comments has passed, but reply comments are due October 18th, 2017. Read the fact sheet and then submit your own comments at FCC.Gov/ecfs/filings for "Proceedings" Docket 17-182 and Docket 10-90.

Another addition to our Community Networks Initiative resources! This fact sheet details the most important aspects of the Connect America Fund (CAF) Auction. What is it? What should it do? Who does it affect? And how can you make a difference?

The Federal Communications Commission (FCC) manages the CAF program, which provides billions of dollars in subsidies to Internet service providers for areas where the cost of building networks is prohibitive. Some large providers decided not to accept some of the subsidies during Phase I - about $198 million annually for 10 years. Now, the FCC plans to host an auction so that providers can submit competing proposals on how best to serve these often rural, high-cost areas. (Check out the map of preliminary areas on the FCC website.)

Before the FCC can hold an auction though, the commission needs advice on how best to conduct it and what criteria they should consider. Jon Chambers, former head of the FCC's Office of Strategic Planning and Policy Analysis, outlined his concerns about the current proposed rules in his article, The Risk of Fraudulent Bidding in the FCC Connect America Fund Auction. Listen to his analysis on Episode 268 of the Community Broadband Bits Podcast.

The first round of public comments has passed, but reply comments are due October 18th, 2017. Read the fact sheet and then submit your own comments at FCC.Gov/ecfs/filings for "Proceedings" Docket 17-182 and Docket 10-90.

Another addition to our Community Networks Initiative resources! This fact sheet details the most important aspects of the Connect America Fund (CAF) Auction. What is it? What should it do? Who does it affect? And how can you make a difference?

The Federal Communications Commission (FCC) manages the CAF program, which provides billions of dollars in subsidies to Internet service providers for areas where the cost of building networks is prohibitive. Some large providers decided not to accept some of the subsidies during Phase I - about $198 million annually for 10 years. Now, the FCC plans to host an auction so that providers can submit competing proposals on how best to serve these often rural, high-cost areas. (Check out the map of preliminary areas on the FCC website.)

Before the FCC can hold an auction though, the commission needs advice on how best to conduct it and what criteria they should consider. Jon Chambers, former head of the FCC's Office of Strategic Planning and Policy Analysis, outlined his concerns about the current proposed rules in his article, The Risk of Fraudulent Bidding in the FCC Connect America Fund Auction. Listen to his analysis on Episode 268 of the Community Broadband Bits Podcast.

The first round of public comments has passed, but reply comments are due October 18th, 2017. Read the fact sheet and then submit your own comments at FCC.Gov/ecfs/filings for "Proceedings" Docket 17-182 and Docket 10-90.

Another addition to our Community Networks Initiative resources! This fact sheet details the most important aspects of the Connect America Fund (CAF) Auction. What is it? What should it do? Who does it affect? And how can you make a difference?

The Federal Communications Commission (FCC) manages the CAF program, which provides billions of dollars in subsidies to Internet service providers for areas where the cost of building networks is prohibitive. Some large providers decided not to accept some of the subsidies during Phase I - about $198 million annually for 10 years. Now, the FCC plans to host an auction so that providers can submit competing proposals on how best to serve these often rural, high-cost areas. (Check out the map of preliminary areas on the FCC website.)

Before the FCC can hold an auction though, the commission needs advice on how best to conduct it and what criteria they should consider. Jon Chambers, former head of the FCC's Office of Strategic Planning and Policy Analysis, outlined his concerns about the current proposed rules in his article, The Risk of Fraudulent Bidding in the FCC Connect America Fund Auction. Listen to his analysis on Episode 268 of the Community Broadband Bits Podcast.

The first round of public comments has passed, but reply comments are due October 18th, 2017. Read the fact sheet and then submit your own comments at FCC.Gov/ecfs/filings for "Proceedings" Docket 17-182 and Docket 10-90.

This is the transcript for episode 268 of the Community Broadband Bits Podcast. Jon Chambers of Conexon once again joins the show. This time Jon dives into the details of the Connect America Fund program and discusses the upcoming Connect America Fund auction. Listen to this episode here.

Jon Chambers: Rural Americans, have the same aspirations, the same needs, the same uses of the Internet as everyone else. It shouldn't surprise anyone when I say, rural Arkansans, rural Missourians subscribe to gigabit services too. It does surprise people. It surprises people at the FCC, it surprises policy makers. Doesn't surprise people who live and work and spend their lives in rural America.

Lisa Gonzalez: This is episode 268 of The Community Broadband Bits Podcast from The Institute For Local Self-Reliance, I'm Lisa Gonzalez. As the question of how best to bring high quality Internet access to rural America becomes more pressing, rural cooperatives are rapidly taking a leading role. This week's guest, Jon Chambers, works with electric cooperatives that decide they want to offer high speed connectivity. Jon spent time working for the FCC and has a special understanding of how the agency approaches review and funding for telecommunications. In this conversation, he and Christopher talk about the Connect America Fund. Learn more about Jon's firm, visit their website at conexon.us. Now, here's Christopher and Jon Chambers from Conexon.

Christopher Mitchell: Welcome to another edition of The Community Broadband Bits Podcast. I'm Chris Mitchell at The Institute For Local Self-Reliance. Today, I'm once again with Jon Chambers, a partner at Conexon. Welcome back to the show Jon.

Jon Chambers: Thank you Chris. Thanks for inviting me.

Christopher Mitchell: You've been on the show multiple times recently, talking about how rural electric cooperatives can basically solve this problem for all of rural America. Do you want to briefly remind us what Conexon is?