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Border to Border Broadband in Minnesota
Cable Monopoly Result of Private Sector, not Public
A common misconception is that local governments award exclusive (or monopolistic) franchises to cable companies and that is why the US has so little cable competition. However, no local government has done this since the 1996 Telecommunications Act 1992 Cable Act made the practice illegal.
But even before the '96 Telecom Act '92 Cable Act, local governments tended to award non-exclusive contracts to cable companies because they wanted more competition, not less -- as illustrated in this article about Cox preparing to renew its franchise agreement with New Orleans.
Federal laws and Federal Communications Commission decisions also have sharply curtailed the city's negotiating ability. Even if other companies were seeking permission to provide cable to local customers, said William Aaron, a legal adviser to the council on telecommunications issues, council members could not arbitrarily refuse to renew the Cox franchise. The council could do that only on the basis of certain limited criteria, such as that the company has not lived up to the terms of the 1995 agreement. Cox has had a nonexclusive franchise to operate in Orleans Parish since 1981, meaning that other companies also can apply to provide cable services, though none has done so. The franchise was renewed in 1995.For years, state and federal policies have limited local authority to require just compensation for access to the valuable right-of-way because the cable and telephone companies pretended that they would invest more and create competition if local authority were preempted. Local authority has been significantly preempted in many communities without any real increase in competition or lowering of prices. No surprise there - another victory for companies better at lobbying than providing essential services.
Comcast v. Community in Colorado
Congrats to Comcast: Least Trusted Company Twice Over
Comcast has once again distinguished itself as an extraordinary company - not only do Americans trust it less than any other company on the list, it occupies the two bottom positions. Big shocker that communities want better local service with their own networks.
Accoding to the 2011 Temkin Trust Ratings, which looks at the level of trust that consumers have in 143 large U.S. companies in a total of 12 industries, only eight companies earned "very strong" ratings while 26 earned "very weak" ratings.Comcast was the worst. But it is in the company we would expect - Time Warner Cable and Charter are close to the bottom also.
Astroturf Org in Longmont Accuses City of Distributing Propaganda
Bryan Baum has appeared at several forums in support of 2A, including a Longmont Area Chamber of Commerce forum in which he urged out-of-town opponents of the ballot question to "get out of town" and let Longmont settle its own issues.The group said "This is obviously a mistake," Merritt said. "We'll get that fixed." Yeah sure. Whoops. We accidentally claimed a prominent figure as a supporter. Their response? They took his name off that list but left his wife's name on their site! This is a group with absolutely zero credibility. But they have tons of funding -- likely from Comcast and incumbent trade groups that fight these initiatives everywhere to preserve what is essentially a monopoly for the cable and telephone companies. We just republished an op-ed outlining some these tactics from 2009. Now the "Look Before We Leap" group is accusing the City of distributing propaganda.
Longmont Fiber Ring Referendum
Residents in Longmont, Colorado are preparing for a municipal referendum to utilize an existing fiber optic network.
The referendum is set for Tuesday, November 1, 2011.
At issue is how the city can use a ring of fiber-optic cables it built around the city in the late 90's as part of its electrical infrastructure. Much of the capacity on the ring remains unused but the city requires approval of the voters in a referendum before it can offer services to local businesses -- which will encourage economic development by creating more telecommunications choices in the community for businesses and residents (some background here).
This is referendum question 2A:
Ballot Question 2A: Without increasing taxes, shall the citizens of the City of Longmont, Colorado, re-establish their City's right to provide all services restricted since 2005 by Title 29, article 27 of the Colorado Revised Statutes, described as "advanced services," "telecommunications services" and "cable television services," including any new and improved high bandwidth services based on future technologies, utilizing community owned infrastructure including but not limited to the existing fiber optic network, either directly or indirectly with public or private sector partners, to potential subscribers that may include telecommunications service providers, residential or commercial users within the City and the service area of the City's electric utility enterprise?
Big cable and telco operators have wasted no time in spreading fear and false information to scare voters into voting against using a valuable asset owned by the community. When the community organized a debate for the end of September, the only people willing to defend Comcast's position came from far outside the community to do it.
Trying to get in the mind of the big incumbents of Longmont, we developed this cartoon (the style is an homage to the "Get Your War On" comic).
Longmont Referendum Take Two: It Starts With a Debate
Without that vote, the city can't let homes or businesses use that fiber without a vote, thanks to a 2005 state law. It's a fight the city's lost once before in 2009, when opponents -- including the Colorado Cable Telecommunications Association -- spent $245,513 to urge the measure's defeat. This time out, there's a different tack. The city has been underlining in discussions that the measure would "restore its rights" to provide telecommunications service.
PUC Gives Lake Communications Authority to Offer Broadband on Minnesota North Shore
Kevin O’Grady, a staffer for the Public Utilities Commission, called Thursday’s 5-0 vote “uneventful.” He said that aside from a protest from the Minnesota Cable Communications Association that was withdrawn just before the vote, the application was “nothing out of the ordinary.” The cable association, which faces competition from the fiber project, had complained that the county, without a public vote, couldn’t be the legal authority to provide telecommunications services under Minnesota law. The commission, responding to the complaint, said the authority would be granted to Lake Communications, which it deemed had a proper relationship with the county in providing the service. … The county plans to build the network and lease the lines to Lake Communications for revenue. In its original response to the cable association’s complaint, the state commission said Lake Communications’ application “complies with the requirements typically applied by the commission to applications” across the state. It also stated that Lake Communications’ financial statements were “sufficient and consistent with the financial information filed by other applicants for authority.”Remember that Minnesota law requires a supermajority vote of 65% before cities and counties provide telephone service. In this case, Lake Communications will be offering the services on infrastructure owned by the County. If there is any sliver of a doubt about the legality of this arrangement, we can expect Mediacom or the Minnesota Cable Communications Association to file suit.
Encouraging Community Networks in Chino Hills, California
Time Warner is an $18 Billion dollar company with $1.3 Billion in profits in 2010. Verizon did $106 Billion with $2.5 Billion dollars in profits in 2010. They're not worried about Chino Hills. In fact both of these companies are actively lobbying states around the country to prevent local municipalities from entering the broadband market. I'd like to see our city enter this business and give these national companies a run for their money.Our video (included below) comparing community fiber networks to services from big incumbent providers has some there thinking that they should consider building their own network to prepare for the near future when much higher capacity networks will be needed to take advantage of all the applications moving to the cloud.