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Protecting Local Authority Against ALEC and AT&T Attacks

Forbes' CIO Network carried this article co-authored by our own Christopher Mitchell and Todd O’Boyle, the Program Director for the Media and Democracy Reform Initiative at Common Cause. The same article also ran on the CommonBlog under the title "Debunking ALEC, Broadband Edition."

Why Communities Should Decide What Telecom Networks They Have

Not long ago, the United States led the world in broadband connectivity. Now we are in 16th place, trailing most developed nations. We need broadband policies that connect our homes, schools, and business to the 21st century economy, but we’re pursuing public policies that are putting us in a hole, helping private telecommunications providers and harming the public interest. As the old adage goes, when in a hole, stop digging.

Why is this happening? One reason is that across much of the nation, commercial broadband companies are using their political and economic clout to stifle competition, particularly from municipalities. Individually and through trade groups and the American Legislative Exchange Council (ALEC), the industry is bent on shutting down existing publicly-owned broadband systems and blocking the development of new ones.

ALEC’s argument, detailed in a recent Daily Caller op-ed by John Stephenson, director of its communications and technology task force, is based on distorted and inaccurate claims that would be laughable if they weren’t part of a coordinated strategy to radically transform policy state-by-state.

Old Snake Oil in New Bottles: Ideological Attacks on Local Public Enterprises

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We are engaged in a rare event - we are moving offices. The Institute for Local Self-Reliance pre-dates our initiative and has been in this location for over 20 years. During the packing and sorting, we have encountered a curious collection of treasures. 

In keeping with this air of nostalgia, we want to present a report from 2001 by John Kelly, who was Director of Economics and Research at the American Public Power Association at the time he wrote the piece. The title caught our attention but the content kept our interest. We want to pass it on as recommended reading.

"Old Snake Oil in New Bottles: Ideological Attacks on Local Public Enterprises in the Telecommunications Industry" (PDF format) is a critique of a Progress and Freedom Foundation (PFF) report titled "Does Government belong in the Telecommunications Business?" (PDF) Kelly confirms that the arguments and fallacies advanced by the private telecommunications industry and its lobbyists have not changed in 11 years. The past 11 years have also seen the same slanted arguments and the same shaded research that, even after repeatedly being discredited, arise again and again.

The arguments truly are "snake oil." From the report:

One dictionary definition of "snake oil" describes it as "a liquid substance with no real medicinal value sold as a cure-all or nostrum...." This definition aptly describes the content of the PFF report. Its claims are not solid ones and can be easily refuted. Essentially, it views the elimination of government enterprises from the telecommunications industry as a cure-all, or nearly one, for the competitive problems that exist in the industry. This solution has no real value, and is counterproductive; it would exacerbate the problem of a lack of effective competition in the industry. The problem is a lack of effective competition, not public enterprises.

Another Maryland Community Explores Network Possibilities

Not long ago, we brought you news about the status of the new network being constructed in Carroll County, Maryland. The County is partnering with local Maryland Broadband Cooperative to provide better service to local businesses.

Earlier this week, Brett Lake of the Carroll County Times reported that Westminster, a town of about 18,000 residents in the north central part of the state, will move forward with a broadband feasibility study. From the article:

The study will include an assessment of the city’s long-term broadband needs, a market and benefits study, analysis and business plan, a detailed installation plan and options for potential funding opportunities.

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Among the scope of work performed for the study includes the likely long-term broadband needs of Westminster’s community including residents, businesses and industrial parks.

The study will also provide the city with the potential market for fiber-based voice, data and video services along with the opportunities and obstacles for economic development related to the fiber-based services.

The city will also receive a report on the benefits and risks of community broadband initiatives on various fields including education, public safety, healthcare, economic development and government services.

The study is scheduled to be completed within nine months. We look forward to following the developments in Westminster.

"Models for Building Local Broadband" Forum Archive Now Available

On September 19th, the Urbana Champaign Independent Media Center (UCIMC) hosted "Models for Building Local Broadband: Public, Private, Coop, Nonprofit." Christopher Mitchell was one of several panelists who discussed local broadband options and challenges.

The presentors live streamed to 138 attendees with 93 watching remotely various locations and 45 at the Media Center. If you were not able to attend or stream the live event, you can now watch the archived version. You can learn a little about the event and watch it at the UCIMC website, or watch the YouTube video here.

Chanute's Gig: Rural Kansas Network Built Without Borrowing

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The Institute for Local Self-Reliance has just released a new case study on community broadband -- this one examines how Chanute, Kansas, built its own broadband network over a period of many years without borrowing. Download a PDF of Chanute's Gig: One Rural Kansas Community's Tradition of Innovation Led to a Gigabit and Ubiquitous Wireless Coverage here. Local businesses are strong supporters of the network. From Ash Grove Cement to MagnaTech, business clients have remained satisfied subscribers. The network continues to encourage economic development and provides connectivity options that attract high bandwidth employers. The network generates $600,000 per year for Chanute’s Electric Utility, 5 percent of which goes to the general fund as a franchising fee each year. Author Christopher Mitchell, Director of the Telecommunications as Commons Initiative at the Institute for Local Self-Reliance, believes Chanute can offer valuable lessons to other communities across the United States. “This community has demonstrated that communities can meet their own telecommunications needs with smart public investments — they did not wait for national corporations to solve their problems.” City Manager J.D. Lester refers to municipal broadband as “the great equalizer for Rural America,” saying: “You don’t have to live in Kansas City to work there.” The City also operates a 4G WiMAX network that connects public safety and is used to feed Wi-Fi hotspots throughout the community. Local leaders plan to expand the network to offer access to all residents and businesses in the future as extending it become financially feasible. As it expands, it will offer the potential for smart-grid type investments in the gas, water, and electrical utilities — all of which are owned and operated by the local government. One of the key lessons other communities can take away from this case study is how planning and prioritizing community investments in broadband can greatly benefit the community, especially local businesses. Chanute took advantage of several opportunities to expand what started as a very basic network over the course of many years at low cost.

FCC Chairman Genachowski Once Again Praises Muni Broadband

Just this week, FCC Chairman Julius Genachowski highlighted the success of Chattanooga at a speech at VOX Media and SBNation on Winning the Global Broadband Race. From his speech (the entire speech in PDF format is available here):

First, as we said in our National Broadband Plan, we need “innovation hubs” with ultra-fast broadband, with speed measured in gigabits, not megabits.

There have been some positive recent developments on this front.

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In Chattanooga, the community-owned utility installed a 100% fiber-to-the-premises network, making speeds up to 1 gigabit per second available to all businesses, residences, and institutions

Genachowski also commented on Chattanooga's place in the competitive environment:

Promoting competition also means we need to keep a close eye on developments in places like Chattanooga and Kansas City to see what additional steps we can take to encourage game- changing investments by disruptive broadband competitors.

This is not the first time Chairman Genachowski has referred to municipal networks as a valuable asset. In his August comments on the Google Fiber roll-out, he referred to the importance of municipal infrastructure investments as a way to push the boundaries and compete globally.

Wired West Survey Shows Demand for Better Broadband in Rural Massachusetts

We have closely followed the efforts of WiredWest, the collaborative project involving 37 (and growing) towns in western Massachusetts. The group is currently collecting pre-subscription cards to show support for the project. The pre-subscription results will also assist efforts to finance the project by documenting the existing demand.

Plans for the 2,000 mile fiber optic network continue to inch forward with every new town that joins the group. Estimated cost for the network is between $60 million and $120 million and, as the cooperative grows, so does the group's ability to successfully apply for grants and issue bonds. Much of the cooperative's business and technical expertise comes from in-kind contributions from its members. We see Wired West as a prime example of communities coming together to take control of their own destiny.

A recent Berkshire Eagle article by Scott Stafford discussed some of the results from a March marketing survey. From the article:

Average survey respondents have two computers (desktop, lap-top or notebook devices) in the home. And while 88 percent currently have some type of home Internet service, 45 percent are dissatisfied with the speed of their Internet.
The survey also showed that 25 percent who responded currently run a business from home or telecommute. An additional 30 percent said they would likely operate a business out of their home or telecommute if they had better Internet access.

He spoke with Monica Webb, Chair of WiredWest's Executive Committee, who pointed out some economic realities:

"Many people are saying they would start a home-based business or telecommute if they had better broadband access," Webb said. "And there are a number of second homeowners that would stay in the county longer, or relocate here full time, if there was better Internet service."

The impact on the regional economy could be significant. Webb described the role of broadband access to the local economy as "fundamental infrastructure," comparable to the telephone service and electricity.

Municipal Network SpringNet is Great for Local Businesses

On September 11th, we interviewed Todd Murren, Director of SpringNet, for our Community Bradband Bits podcast. Todd told us the story of how travel giant Expedia, chose Springfield, Missouri, as the location for their call center and how SpringNet services them with its high capacity network.

Expedia originally planned on working with a large national carrier to provide connectivity. When it was time to seal the deal, however, promises were broken - the telecommunications company revealed it would not be able to provide the needed bandwidth after all. Expedia almost walked away from Springfield. Thanks to SpringNet, however, and its 350 fiber miles and first class business services, Expedia stayed. SpringNet saved 400 new local jobs.

Todd gave us more examples of how SpringNet has contributed to the local economy as it serves over 200 business clients. In addition to these examples of how SpringNet directly influences the local economy, keep in mind the positive ripple effect. Here a quick list from Todd:

Santa Monica Named Among Top 15 Government Innovators

Congratulations to the city of Santa Monica, for adding another award to their long list. On September 18th, city leaders announced that InformationWeek 500 named the city to the 2012 list of technology innovators. Santa Monica is among the Top 15 Government Innovators.

The award specifically acknowledges the Advanced Traffic Management System (ATMS) that uses Santa Monica's fiber network to improve traffic safety. From a Santa Monica Daily Press Article about the recognition:

The ATMS connects traffic signals, cameras, controllers and wireless devices on transit corridors through Santa Monica’s fiber-optic network. The entire system is managed in one room where traffic is monitored and controlled in real time. Traffic signals can be adjusted on the fly to deal with shifting traffic patterns during peak travel times, holidays, special events and traffic accidents.

Emergency vehicles can also trigger green lights, helping them move quickly through the city. The number of parking spaces available in city-owned lots and structures is also monitored and displayed on signs and on City Hall’s website. There are also Wi-Fi equipped parking meters that take payments by credit cards and cell phones.

A special website — smconstructs.org — provides the latest information on development projects, as well as road closures, detours and other impacts on traffic, according to the press release.

The city also runs parkingspacenow.smgov.net, which allows users to find a place to park their vehicles and provides information on all things parking related.

For a slideshow on Santa Monica and the other Top 15, visit the InformationWeek Global CIO website.

Community Fiber Networks Conference November 8-9 in Danville, Virginia

The Economic Development Conference Series' first event, Community Fiber Networks, is scheduled for November 8 - 9, 2012, in Danville, Virginia. Dates and locations for later events will follow. The series is being produced by Broadband Communities Magazine. Danville is near the border with North Carolina.

Christopher Mitchell and a long list of industry experts will be presenting on a wide range of topics at the Institute for Advanced Learning and Research in Danville.

Leaders in all areas of the Advanced Broadband Network industry will be sharing their findings and expertise. Danville was chosen because it is a true success story. By using their fiber network as a catalyst for economic development, Danville transformed itself. For years it was a struggling textile town but is now a highly desirable destination for businesses and individuals seeking advanced telecommunications services.

Christopher will be talking on Thursday, November 8th, on "Winning Community Initiatives." Friday, November 9th, he will present as part of the panel on "Innovative Financing Methods." The full agenda for the conference is available to help you plan your schedule.

Danville Location in Virginia

From the press release:

THIS IS THE FIRST conference of its kind in this country - an event devoted entirely to the relationship between a community's economic vitality and the presence of advanced broadband networks. Nations around the world have recognized this powerful linkage and responded to it - as have a growing number of communities in the United States.

Each event in this new conference series will be held in a city with an advanced broadband system.

Each event will have an impressive array of speakers whose mission will be to help attendees evaluate the options and opportunities and develop the optimal, affordable solution for their communities.