The Star Tribune ran my opinion piece on Monday, March 15 The vast majority of Minnesotans, like the rest of the country, are served by only two broadband suppliers: the cable or telephone company. These companies generally want to maintain their monopolies because they can postpone upgrades while keeping prices and profits high. Just about everyone else just wants a better choice among providers. The result of this structure is that we pay much higher prices for slower internet connections than our peers in Europe and Asia. Here in Minnesota, Monticello has broken the mold. It has transitioned from relying on an overpriced and slow DSL network to now offering the best broadband in the entire state. Monticello residents can choose between a symmetrical 20 Mbps connection (extremely fast) from the City for $35/month or the incumbent telephone company’s new 50 Mbps downstream and 20 Mbps upstream option for $50/month. They have better packages than Comcast’s best residential offers in the Twin Cities – and available at half the price! Entering the local telecommunications market is quite difficult. Building a network costs hundreds of millions for large cities and tens of millions for communities from 10,000 to 50,000. Once the network is built, the costs of adding new customers actually decreases as the number of subscribers increases. This cost structure gives incumbents tremendous advantages because they can drop their prices precipitously if a new entity – public or private – tries to build a competing network. To date, incumbents have largely succeeded in fending off competition. Given the sorry state of broadband in many communities, especially rural ones, it should be no surprise that many cities and counties have started to build their own networks. And happily, they’ve done so with great success. Creating competition forces incumbents to invest and cut prices, generating significant community savings as well as other advantages from a network that operates in the public interest. Unfortunately, there are additional barriers for communities attempting to build their own state-of-the-art broadband networks. As a result of lobbying by incumbents, some eighteen states have created obstacles to publicly owned networks. The need for any state barrier to community networks is dubious.

Minnesota is one of the eighteen states that have enacted specific barriers to prevent the public sector from building networks (protecting incumbents from any competition). It presently has the uniquely high - 65% - referendum requirement on communities that want to build a network that will offer telephone services (which thereby includes all fiber-to-the-home triple play networks). However, up in Cook County, they could not meet that threshold. They had a referendum in which 56% voted yes - a majority but not satisfactorily large for a 1915 MN law. State Representative Dill and Senator Bakk realized this was crazy - state law set too high a bar for the County they represented. Cook would be unable to build the network they need - remember that the whole County was isolated following a single fiber cut because Qwest does not invest in communities where profits are scant (let's not blame Qwest though - private companies are not supposed to be charities and they should not be expected to build the essential infrastructure communities need). Rep Dill and Sen Bakk introduced a bill to reduce the 65% to 50% referendum but the private providers must have thrown some sort of tantrum. Before the bill could even be heard, incumbent providers had reached some sort of a deal with Rep Dill and Sen Bakk, agreeing that they would not oppose the bill if it only applied to Cook County. Cook would be able to build its network, but all other local governments, many very rural and in similar but not equal severity, would be stuck with the 65% referendum requirement if they wanted to build a similar network. In the House, this "compromise" has flown through multiple committees with little debate. In the Senate, some fought back, wondering if perhaps massive incumbent providers shouldn't be the ones to determine if communities can build modern networks -- especially when the providers won't. So the bill was introduced in the Senate. It was quickly amended to the incumbent demanded-text, but was then amended back again to a 50% majority for all MN (better than the 65% in current law). This was all in the Senate Committee dealing with Telecom.

Minnesota is one of the eighteen states that have enacted specific barriers to prevent the public sector from building networks (protecting incumbents from any competition). It presently has the uniquely high - 65% - referendum requirement on communities that want to build a network that will offer telephone services (which thereby includes all fiber-to-the-home triple play networks). However, up in Cook County, they could not meet that threshold. They had a referendum in which 56% voted yes - a majority but not satisfactorily large for a 1915 MN law. State Representative Dill and Senator Bakk realized this was crazy - state law set too high a bar for the County they represented. Cook would be unable to build the network they need - remember that the whole County was isolated following a single fiber cut because Qwest does not invest in communities where profits are scant (let's not blame Qwest though - private companies are not supposed to be charities and they should not be expected to build the essential infrastructure communities need). Rep Dill and Sen Bakk introduced a bill to reduce the 65% to 50% referendum but the private providers must have thrown some sort of tantrum. Before the bill could even be heard, incumbent providers had reached some sort of a deal with Rep Dill and Sen Bakk, agreeing that they would not oppose the bill if it only applied to Cook County. Cook would be able to build its network, but all other local governments, many very rural and in similar but not equal severity, would be stuck with the 65% referendum requirement if they wanted to build a similar network. In the House, this "compromise" has flown through multiple committees with little debate. In the Senate, some fought back, wondering if perhaps massive incumbent providers shouldn't be the ones to determine if communities can build modern networks -- especially when the providers won't. So the bill was introduced in the Senate. It was quickly amended to the incumbent demanded-text, but was then amended back again to a 50% majority for all MN (better than the 65% in current law). This was all in the Senate Committee dealing with Telecom.

Minnesota is one of the eighteen states that have enacted specific barriers to prevent the public sector from building networks (protecting incumbents from any competition). It presently has the uniquely high - 65% - referendum requirement on communities that want to build a network that will offer telephone services (which thereby includes all fiber-to-the-home triple play networks). However, up in Cook County, they could not meet that threshold. They had a referendum in which 56% voted yes - a majority but not satisfactorily large for a 1915 MN law. State Representative Dill and Senator Bakk realized this was crazy - state law set too high a bar for the County they represented. Cook would be unable to build the network they need - remember that the whole County was isolated following a single fiber cut because Qwest does not invest in communities where profits are scant (let's not blame Qwest though - private companies are not supposed to be charities and they should not be expected to build the essential infrastructure communities need). Rep Dill and Sen Bakk introduced a bill to reduce the 65% to 50% referendum but the private providers must have thrown some sort of tantrum. Before the bill could even be heard, incumbent providers had reached some sort of a deal with Rep Dill and Sen Bakk, agreeing that they would not oppose the bill if it only applied to Cook County. Cook would be able to build its network, but all other local governments, many very rural and in similar but not equal severity, would be stuck with the 65% referendum requirement if they wanted to build a similar network. In the House, this "compromise" has flown through multiple committees with little debate. In the Senate, some fought back, wondering if perhaps massive incumbent providers shouldn't be the ones to determine if communities can build modern networks -- especially when the providers won't. So the bill was introduced in the Senate. It was quickly amended to the incumbent demanded-text, but was then amended back again to a 50% majority for all MN (better than the 65% in current law). This was all in the Senate Committee dealing with Telecom.

Minnesota is one of the eighteen states that have enacted specific barriers to prevent the public sector from building networks (protecting incumbents from any competition). It presently has the uniquely high - 65% - referendum requirement on communities that want to build a network that will offer telephone services (which thereby includes all fiber-to-the-home triple play networks). However, up in Cook County, they could not meet that threshold. They had a referendum in which 56% voted yes - a majority but not satisfactorily large for a 1915 MN law. State Representative Dill and Senator Bakk realized this was crazy - state law set too high a bar for the County they represented. Cook would be unable to build the network they need - remember that the whole County was isolated following a single fiber cut because Qwest does not invest in communities where profits are scant (let's not blame Qwest though - private companies are not supposed to be charities and they should not be expected to build the essential infrastructure communities need). Rep Dill and Sen Bakk introduced a bill to reduce the 65% to 50% referendum but the private providers must have thrown some sort of tantrum. Before the bill could even be heard, incumbent providers had reached some sort of a deal with Rep Dill and Sen Bakk, agreeing that they would not oppose the bill if it only applied to Cook County. Cook would be able to build its network, but all other local governments, many very rural and in similar but not equal severity, would be stuck with the 65% referendum requirement if they wanted to build a similar network. In the House, this "compromise" has flown through multiple committees with little debate. In the Senate, some fought back, wondering if perhaps massive incumbent providers shouldn't be the ones to determine if communities can build modern networks -- especially when the providers won't. So the bill was introduced in the Senate. It was quickly amended to the incumbent demanded-text, but was then amended back again to a 50% majority for all MN (better than the 65% in current law). This was all in the Senate Committee dealing with Telecom.

Minnesota is one of the eighteen states that have enacted specific barriers to prevent the public sector from building networks (protecting incumbents from any competition). It presently has the uniquely high - 65% - referendum requirement on communities that want to build a network that will offer telephone services (which thereby includes all fiber-to-the-home triple play networks). However, up in Cook County, they could not meet that threshold. They had a referendum in which 56% voted yes - a majority but not satisfactorily large for a 1915 MN law. State Representative Dill and Senator Bakk realized this was crazy - state law set too high a bar for the County they represented. Cook would be unable to build the network they need - remember that the whole County was isolated following a single fiber cut because Qwest does not invest in communities where profits are scant (let's not blame Qwest though - private companies are not supposed to be charities and they should not be expected to build the essential infrastructure communities need). Rep Dill and Sen Bakk introduced a bill to reduce the 65% to 50% referendum but the private providers must have thrown some sort of tantrum. Before the bill could even be heard, incumbent providers had reached some sort of a deal with Rep Dill and Sen Bakk, agreeing that they would not oppose the bill if it only applied to Cook County. Cook would be able to build its network, but all other local governments, many very rural and in similar but not equal severity, would be stuck with the 65% referendum requirement if they wanted to build a similar network. In the House, this "compromise" has flown through multiple committees with little debate. In the Senate, some fought back, wondering if perhaps massive incumbent providers shouldn't be the ones to determine if communities can build modern networks -- especially when the providers won't. So the bill was introduced in the Senate. It was quickly amended to the incumbent demanded-text, but was then amended back again to a 50% majority for all MN (better than the 65% in current law). This was all in the Senate Committee dealing with Telecom.

Minnesota is one of the eighteen states that have enacted specific barriers to prevent the public sector from building networks (protecting incumbents from any competition). It presently has the uniquely high - 65% - referendum requirement on communities that want to build a network that will offer telephone services (which thereby includes all fiber-to-the-home triple play networks). However, up in Cook County, they could not meet that threshold. They had a referendum in which 56% voted yes - a majority but not satisfactorily large for a 1915 MN law. State Representative Dill and Senator Bakk realized this was crazy - state law set too high a bar for the County they represented. Cook would be unable to build the network they need - remember that the whole County was isolated following a single fiber cut because Qwest does not invest in communities where profits are scant (let's not blame Qwest though - private companies are not supposed to be charities and they should not be expected to build the essential infrastructure communities need). Rep Dill and Sen Bakk introduced a bill to reduce the 65% to 50% referendum but the private providers must have thrown some sort of tantrum. Before the bill could even be heard, incumbent providers had reached some sort of a deal with Rep Dill and Sen Bakk, agreeing that they would not oppose the bill if it only applied to Cook County. Cook would be able to build its network, but all other local governments, many very rural and in similar but not equal severity, would be stuck with the 65% referendum requirement if they wanted to build a similar network. In the House, this "compromise" has flown through multiple committees with little debate. In the Senate, some fought back, wondering if perhaps massive incumbent providers shouldn't be the ones to determine if communities can build modern networks -- especially when the providers won't. So the bill was introduced in the Senate. It was quickly amended to the incumbent demanded-text, but was then amended back again to a 50% majority for all MN (better than the 65% in current law). This was all in the Senate Committee dealing with Telecom.

The Longmont Times-Call continues its coverage of the community network struggles of a Colorado community. This story has a lot of the history behind how Longmont developed a fiber ring and how they have used it even as they are prohibited from expanding it. Longmont is not alone in working for upwards of a decade to bring better broadband to the community that actually meets local needs rather than maximizing profits. Other communities have also spent ten, fifteen, or even long with on-gain, off-again plans to build a publicly owned network. This reality provides a handy refutation of state preemptions based on the logic that communities will act too quickly in not considering their plan for a network. Communities take years in researching, planning, and developing networks. In Longmont, the first public fiber investment came in 1996 and was expanded shortly thereafter by the Platte River Power Authority. The city moved more than 40 facilities to a gigabit network, leaving T1s to communities that prefer to vastly overpay for their telecommunications needs. They worked with a private company, Adesta, to expand the network to residents and businesses but the company filed for bankruptcy in the following year. The arrangement certainly had its upside though - Qwest and Comcast mysteriously decided to start offering broadband in Longmont shortly after the Adesta agreement. This happens almost every time a community invests in infrastructure -- it leads to increased investment from incumbents. They quote a techie from the Longmont Hospital who explains the one of the benefits of the publicly owned fiber already in the ground:

“It’s at least a three times reduction in cost,” Niemann said of leasing fiber from the city, versus contracting with a commercial provider. “And oftentimes, if you go with a commercial provider, you have construction costs.”

The city would like to expand the network, both to bring competition to the DSL/cable duopoly, and to invest in smart grid applications for its public power utility. Unfortunately, they have to win a referendum per Colorado's incumbent-protection law. The incumbents are more than willing to spend hundreds of thousands against any such measure, knowing they would lose far more in profits if they had to deal with competition in the community.

The Longmont Times-Call continues its coverage of the community network struggles of a Colorado community. This story has a lot of the history behind how Longmont developed a fiber ring and how they have used it even as they are prohibited from expanding it. Longmont is not alone in working for upwards of a decade to bring better broadband to the community that actually meets local needs rather than maximizing profits. Other communities have also spent ten, fifteen, or even long with on-gain, off-again plans to build a publicly owned network. This reality provides a handy refutation of state preemptions based on the logic that communities will act too quickly in not considering their plan for a network. Communities take years in researching, planning, and developing networks. In Longmont, the first public fiber investment came in 1996 and was expanded shortly thereafter by the Platte River Power Authority. The city moved more than 40 facilities to a gigabit network, leaving T1s to communities that prefer to vastly overpay for their telecommunications needs. They worked with a private company, Adesta, to expand the network to residents and businesses but the company filed for bankruptcy in the following year. The arrangement certainly had its upside though - Qwest and Comcast mysteriously decided to start offering broadband in Longmont shortly after the Adesta agreement. This happens almost every time a community invests in infrastructure -- it leads to increased investment from incumbents. They quote a techie from the Longmont Hospital who explains the one of the benefits of the publicly owned fiber already in the ground:

“It’s at least a three times reduction in cost,” Niemann said of leasing fiber from the city, versus contracting with a commercial provider. “And oftentimes, if you go with a commercial provider, you have construction costs.”

The city would like to expand the network, both to bring competition to the DSL/cable duopoly, and to invest in smart grid applications for its public power utility. Unfortunately, they have to win a referendum per Colorado's incumbent-protection law. The incumbents are more than willing to spend hundreds of thousands against any such measure, knowing they would lose far more in profits if they had to deal with competition in the community.

The Longmont Times-Call continues its coverage of the community network struggles of a Colorado community. This story has a lot of the history behind how Longmont developed a fiber ring and how they have used it even as they are prohibited from expanding it. Longmont is not alone in working for upwards of a decade to bring better broadband to the community that actually meets local needs rather than maximizing profits. Other communities have also spent ten, fifteen, or even long with on-gain, off-again plans to build a publicly owned network. This reality provides a handy refutation of state preemptions based on the logic that communities will act too quickly in not considering their plan for a network. Communities take years in researching, planning, and developing networks. In Longmont, the first public fiber investment came in 1996 and was expanded shortly thereafter by the Platte River Power Authority. The city moved more than 40 facilities to a gigabit network, leaving T1s to communities that prefer to vastly overpay for their telecommunications needs. They worked with a private company, Adesta, to expand the network to residents and businesses but the company filed for bankruptcy in the following year. The arrangement certainly had its upside though - Qwest and Comcast mysteriously decided to start offering broadband in Longmont shortly after the Adesta agreement. This happens almost every time a community invests in infrastructure -- it leads to increased investment from incumbents. They quote a techie from the Longmont Hospital who explains the one of the benefits of the publicly owned fiber already in the ground:

“It’s at least a three times reduction in cost,” Niemann said of leasing fiber from the city, versus contracting with a commercial provider. “And oftentimes, if you go with a commercial provider, you have construction costs.”

The city would like to expand the network, both to bring competition to the DSL/cable duopoly, and to invest in smart grid applications for its public power utility. Unfortunately, they have to win a referendum per Colorado's incumbent-protection law. The incumbents are more than willing to spend hundreds of thousands against any such measure, knowing they would lose far more in profits if they had to deal with competition in the community.