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Comcast Cuts Deal in Cape Cod as OpenCape Deployment Continues

CapeCodToday, recently ran two interviews relating to OpenCape, the publicly owned network nearing completion in Massachusetts. The interviews follow a belated March press release from Comcast, announcing its new service contract with Cape Cod Community College (CCCC). Like some others familiar with the project, we were surprised to see the college choosing Comcast for connectivity instead of OpenCape.

As we previously noted, CCCC and Woods Hole Oceanographic Institute were two OpenCape founding members in 2006. The nonprofit OpenCape received $32 million in a Broadband Technology Opportunity Program (stimulus) award and gathered an additional $8 million in funds from the state, the county, and CapeNet, the company building and operating the network.

Reporter Walter Brooks asked CCCC President John Cox about the arrangement via email. Comcast began serving CCCC last fall and when asked why parties delayed the announcement, Cox said:

Regarding the delay in publicity, the College was not willing to comment on the connection, including statements to Comcast itself, until we had actively used it for a couple of months.

When the contract was negotiated, CCCC needed fiber service and OpenCape was not ready to serve them. Cox stated that the college needs to stay competitive and referred to a Bridgewater University satellite campus that will soon open in the community. Community colleges rely heavily on reliable connectivity as students look for distance learning opportunities.

Cox said Comcast was the only provider with resources in place and offered a three-year contract at five-year pricing. The rate is $95 less per month than OpenCape's pre-completion estimate. Cox emphasized the fact that the college did not have many choices and said:

In the near future, I am hopeful that CapeNet will be fully operational and competitive, reducing our future costs and increasing our capabilities. As we depend increasingly more upon the internet and “the cloud” for services, there will be even more demand by the College community for fast, reliable, competitively-priced broadband.

Cape Cod Community College Logo

Friends in the area tell us CapeCodToday occasionally prints biased stories about the OpenCape project, leading us to wonder if the timing of Comcast's press release so close to the launch of CapeNet is to promote the misconception that the project has not been successful.

In a later interview with Alan Davis, CEO of CapeNet, Brooks asked rather slanted questions but Davis took the opportunity to correct misinformation. For example:

Cape Cod Today: The OpenCape network cost $40 million in Federal and State funds. Is this just another spectacular waste of tax dollars, as some of our readers have suggested?

Mr. Davis: The government can find lots of creative ways to waste tax dollars, but often they get it right. Thanks to federal and state funding, we’re creating a superior fiber optic infrastructure that will compete with Verizon and Comcast and produce more broadband choices for the region. When buyers have more choices, buyers win.

Right now, Comcast and Verizon have a virtual stranglehold on our region. Did you know they even have a federally-blessed agreement to market each other’s services?

And:

Cape Cod Today: Comcast made a rather comprehensive Service Level Agreement with CCCC. What is CapeNet’s SLA and how does it compare to Comcast’s?

Mr. Davis: Actually Comcast’s SLA is very standard. SLAs are always long and complex since they’re written by lawyers who get paid by the word.

The point of an SLA is to guarantee performance and compensate a customer for loss of service. Our SLA reflects our confidence in the new network and goes beyond the expected.

We’ll stack and aggregate reimbursements for outages and sub-par performance, up to 100% of a customer’s bill. Buyers would love to see Comcast match that and we hope they do.

Like Cox, Davis expresses optimism that CCCC will be ready to sign on with OpenCape and CapeNet in three years. Also from the interview:

Here’s the important thing and you heard it loud and clear: the college stated they would never have gotten those prices from Comcast in previous years. That’s the result of meaningful competition. With more choices and more leverage, the buyer wins. I’m confident you’ll hear more from the college and CapeNet.

CapeNet Logo

In a May 2nd OpEd published in CapeCodToday, Davis provided more detail about how competition from CapeNet improves broadband for everyone:

The bottom line is that when we have more choices for broadband services, we have more leverage against huge companies that have gone unchallenged. We’ll have more power to demand better service and better prices. This changes everything.

Certainly CCCC must supply students and staff with the connectivity they need to learn, teach, and conduct research. OpenCape and CapeNet will soon be in a position to offer the services CCCC needs at a reasonable price. Comcast usually enjoys an environment with little or no competition and takes advantage of their position whenever possible. 

This interview offers some insight for those who may grant interviews to reporters that have an agenda. Slanted media institutions are growing even as more neutral journalistic enterprises are laying off reporters. Communities are smart to be prepared for either ignoring inquiries from obviously-biased sources or practicing responses to misleading charges, some outrageously so.

Carroll County Explains Many Benefits of County Owned Fiber - Community Broadband Bits #43

Chief Information Officer for the Carroll County Public Schools Gary Davis joins me to explain why the Carroll County Government, Public Schools, Public Library, and Community College partnered to build their own fiber optic network. He is also the Chairman of the resulting Carroll County Public Network (CCPN) of Maryland.

The story starts the same as many others - the community anchors were paying too much and did not have access to the connectivity they needed. The telephone and cable companies (both massive international corporations) found higher returns on investment elsewhere and therefore could not justify improvements absent significant subsidy.

Gary explains the savings generated by the network and how it has benefited students attending the local schools. We recently covered the CCPN and its incredible savings for the community in a post here.

We also cover some basics of what some community anchor institutions need to ensure they can take advantage of modern technology.

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 30 minutes long and can be played below on this page or subscribe via iTunes or via the tool of your choice using this feed. Search for us in iTunes and leave a positive comment!

Listen to previous episodes here. You can can download this Mp3 file directly from here.

Thanks to Mount Carmel for the music, licensed using Creative Commons.

Carroll County Public Network Changes Education, Saves School Funds

Carroll County is a bedroom community, with a variety of economies all around it. Washington, D.C., Camp David, Baltimore, Harrisburg, Fort Detrick, and the Aberdeen Proving Ground are a few of the places surrounding Carroll County. There is very little major transportation infrastructure and no major waterways. Many of the county's 167,000 people commute daily to jobs outside of the bullseye.

Gary Davis, Chief Information Officer at the Carroll County Public Schools (CCPS) and Chairman of the Carroll County Public Network (CCPN) started at the school district in 2002 and immediately recognized that the telecommunications arrangement was insufficient.

Schools and other facilities were connected to the hub via 1.5 Mbps T1 connections and the whole wide-area-network was connected to the Internet via an expensive Frame Relay DS3 connection. The total cost ran as high as $600,000 per year.  

When CCPS approached Verizon about increasing bandwidth, Verizon’s proposal was extremely cost-prohibitive. Verizon wanted a long-term commitment that resulted in more than 10 times their current costs. Basically, Verizon would own the network but capital costs would be funded by CCPS and maintained with ridiculously high recurring fees. The return on investment for Verizon was just too low owing the the community demographics.

At that time, Davis met Robert Wack of the Westminster City Council and the two compared notes. Davis' vision for Carroll County Public Schools and Wack's ideas for Westminster and Carroll County were very similar. Both involved a high-speed network and Westminster is currently involved in its own municipal network project (to be covered in an upcoming post).

A 2003 feasibility study on telecommunications upgrades for the school and a second broader feasibility study for the entire county in 2005 resulted in a loose confederation between CCPS, Carroll County Government, Carroll Community College, and the Carroll County Public Library system. Davis is proud of the fact that the CCPN has broken through past silos. The public sector has worked together in Carroll County, preventing the rampant duplication of efforts that used to be the norm. 

Davis says the first focus was on improving educational opportunities with the network. The four entities were able to work together as the CCPN to secure better pricing by leveraging economies of scale. Carroll County applied $7.4 million from its capital project fund to get the project started, the original estimate in the 2005 feasibility study. CCPS also applied funds from its technology budget that had originally been earmarked for upgrades to phone switches.

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Switching from the old telephone system to a VoIP system for the district's approximately 1,000 phone lines amounts to about 40% of today's savings at CCPS. Davis estimates annual savings to CCPS to be around $400,000, which also factors in costs associated with the network. Turning off old T1 connections and abandoning the pricey DS3 connection also contribute significantly to annual savings. Connections between district facilities now vary between 1 and 10 gigs.

Reducing spending is great, he says, but what really matters is the way the network improves the ability to educate. The old T1s and DS3 would not have been able to deliver the bandwidth for applications educators use today. For example, CCPS is experimenting by using the network to connect kids across the county who want to participate in Advanced Placement classes. These classes might not be offered otherwise because there may not be enough students at one location. In the pilot program, several students from schools across the county participate through video streaming, concentrating educator efforts and creating a more vibrant learning experience.

CCPS shares a 500 Mbps Internet connection with the local public library, ten times faster than the old DS3. The public library is also on a separate power grid, which makes it attractive as a secure back up data center for the school district, Carroll County Government, and Carroll Community College.

As the network has expanded, the CCPN has used a variety of funding. A state awarded BTOP grant, with matching funds from the county economic development fund, added to the original school district and county investment. Davis estimates that the county has invested about $12 million over the course of 10 years.

The network now consists of three rings with the fourth central ring in Westminster, the county seat. "Spokes" lead out to the southern end of the county, where community leaders hope to connect with Frederick or Baltimore County. Eight municipalities use the network's 110 miles of fiber over 450 square miles in Carroll County. There is one school in the northern part of the county that is not connected with fiber but uses high speed wireless supported by the fiber.

The network has changed education in Carroll County and done so with significant savings. Davis acknowledges that the change came about through the work of the CCPN Administration, which he describes as an ideal model. "Each member organization contributes its leaders' expertise and what all members CAN do together, they DO do together," says Davis.

For CCPS, the results speak for themselves.

In Georgia, Monroe Muni Network Created Jobs, Lowered Bills

As we monitored Georgia's HB 282, a bill to limit the capacity of local governments to invest in Internet networks that spur economic development, we learned of many existing networks that have helped communities to thrive.

Brian Thompson, Director of Electric and Telecommunications in Monroe took some time to tell us a little about their city network.  Located in the north central section of Georgia, with a population of 13,000, the network now offers triple play services to residents and businesses. Its network started in the 1970s with a municipal cable tv network. Today, the network is a hybrid with fiber having been added as an expansion to its cable network.

Monroe's investment in its fiber began as a way to improve connections for education. The Walton County School District could not find a private provider willing to collaborate on an affordable network between school facilities. The city took on the challenge and built a point-to-point network which the School District paid for in 10 years. In the mean time, the city expanded its network in other areas. Now, the Walton County Schools have gig service between facilities and to the Internet. The District pays only $500 per month for a service that would cost five times more from a private provider.

Thompson also confirmed what we hear from other communities with publicly owned networks - prices for business and residential services are very competitive and service is superior. He notes that customers often express appreciation for local representatives, rather than dealing with a huge bureaucracy like those at Verizon or AT&T. New connections can be created in a matter of hours or days instead of weeks.

Residential service for Internet access from MonroeAccess.Net includes affordable basic service (1 Mbps / 256 Kbps) for $21.95 per month. Two faster tiers include $34.95 (6 Mbps / 512 Kbps) and $44.95 (15 Mbps / 1 Mbps). Cable tv rates vary from $15.50 to $62.95 per month and residential phone service starts at $29.95 per month. Thompson notes that, when Monroe added phone service, rates dropped for every one regardless of carrier. 

There are over 100 fiber customers and the network has been critical for economic security. T1 connections for businesses used to go for $1,000 per month; now higher capacity connections cost $250. Notable customers include Minerva, a beauty salon supplier with a large showroom and distribution center in Minerva. The multi-million dollar salon equipment company has headquarters in China but has nearly 30,000 customers in the U.S. Company owners required a fiber connection to communicate with the facility in real time. Monroe was happy to oblige.

Hitachi Logo

Monroe is also home to a Hitachi plant that makes parts for several auto companies. The fiber network allows the plant to communicate efficiently with the Hitachi headquarters located in Harrodsburg, Kentucky. The plant employs about 250 people.

Monroe never borrowed or bonded to build out its network. Thompson tells us the network has always progressed slowly and community leaders leverage partnerships with local interests along the way. The city used its capital investment fund for initial construction and continues to expand slowly with revenue obtained from offering services. Thompson tells us that their approach works for Monroe and shudders at the thought of legislators in Atlanta claiming otherwise.

Monroe's network travels well outside the city limits, over a nine county area, and HB 282 could have put an end to its expansion. Fortunately the bill was defeated on the House floor and for at least one more year, this community does not have to worry that the state will revoke its power to encourage economic development locally.

Extensive Fiber Route Snaking Its Way Across Michigan

The nonprofit Merit Network, Inc., of Michigan, started in 1966 as a way to provide networking help to the state's research and educational facilities across the state. Over the years, the organization has kept up with the times and is now spearheading the Rural, Education, Anchor, Community and Healthcare - Michigan Middle Mile Collaborative (REACH-3MC II) project.

The project will bring connectivity to community anchor institutions and underserved rural communities in the Upper and Lower Peninsulas. The exentive fiber project is funded with two Broadband Technologies Opportunities Program (BTOP) grants totaling $103.2 million. When completed, Upper and Lower Michigan will house an additional 2,287 miles of fiber.

Matt Roush recently reported on the project, which is well underway in Monroe County in the southern part of the state. Roush brought news about installation of telecommunications huts, an early step in expanding the network into northern Michigican. From the article:

REACH-3MC will connect 105 community anchor institutions as the network is built and will pass 900 more over time. Led by Merit Network, REACH-3MC includes sub-recipients from the private sector to make broadband readily available to households and businesses that lack adequate service options in the 52 counties that make up the project service area.

For more details on the project, including a map of the proposed routes, follow this link to a PDF of the project overview.

 

NonProfit MCNC Builds Middle Mile in North Carolina

The Salisbury Post discusses MCNC's new middle-mile networks that are being built with stimulus funds. MCNC, an independent nonprofit so old that few remember what it stands for (Microelectronics Center of North Carolina), already runs the North Carolina Research and Education Network connecting libraries and schools across the state.

MCNC is a private, nonprofit organization that runs the North Carolina Research and Education Network. The organization secured two grants through the U.S. Department of Commerce’s Broadband Technology Opportunities Program (BTOP) to fund the infrastructure. Broadband Technology Opportunities Program funds make up $75.75 million of the funding for this phase; MCNC raised $28.25 million privately, including $24 million from Golden LEAF Foundation.

The total project includes more than 2,000 miles of broadband infrastructure to be outfitted through 69 counties in North Carolina.

“The great work being done here … is going to be able to be shared over the world,” said Freddoso [CEO of MCNC].

Freddoso said MCNC has had conversations with the city of Salisbury, distributor of Fibrant cable and Internet service. While the new fiber optic infrastructure will not provide service directly to customers, MCNC will offer wholesale broadband to companies like Time Warner Cable and municipalities that run their own services, like Salisbury.

While we are always happy to see libraries and schools getting access to the connections they need at affordable prices, we believe some of these state-wide educational networks can be counter-productive. Schools and libraries should be anchor tenants on networks owned by the local community (ownership options include coop, nonprofit, or muni ownership). When schools and libraries are served instead by statewide "silo" networks that do not connect residents and businesses, it becomes harder for local communities to finance the networks that will actually connect everyone.

However, as this middle mile is open to others on fair terms (as required by the stimulus broadband programs), we hope it will help communities to build the networks they need once North Carolina comes to its senses and removes the Time Warner Cable-sponsored legislation to gut local authority over essential infrastructure.

WiscNet Under Continued Attack, Contact Elected Officials

As we feared, the compromise may have been compromised by the uncompromising power of AT&T lobbyists. Once again, we learn that they struck at the last hour and may have put local schools and libraries on the chopping block.

If WiscNet goes and stimulus funds are returned, local institutions will have to double and triple their telecom budgets just to continue receive adequate service. This is intolerable. Until we hear otherwise, we encourage people to continue contacting their elected officials [pdf] in Wisconsin to express their opinion on the matter.

Some more details here and here.

Update: The Assembly will now be meeting at 1:00 rather than this morning. Rumors abound that they are still discussing how to "compromise" on AT&T's attack on the schools and libraries.

Unfortunately, this afternoon, I'll be leaving for a short camping trip (AT&T is not going to ruin my trip) and I have some canned posts queued up, so I won't be able to cover what happens in Wisconsin immediately. For news on the stimulus grant impact, follow WI_Broadband and for news about WiscNet, follow ijohnpederson and his live blog.

2nd Update: To understand how AT&T has so much power in Wisconsin, check out who "donates" the most money.

Positive Update from Wisconsin on WiscNet, Stimulus Awards

The word from Wisconsin is mostly good. A deal has been struck that will spare WiscNet, though it will be studied for two years and then could be killed. But a fair, open study will allow WiscNet to clearly demonstrate its value -- WiscNet thrives in the light while AT&T thrives at secretive, last minute measures to gut its competitors.

Additionally, the stimulus grants appear to be safe. The Legislature apparently will not require them to be returned long after the recipients had begun implementing them. But again, there is some bad news in that UW Extension will be restricted from receiving federal grants in the future to build the networks otherwise unavailable to schools and libraries. So that is disappointing. Returning those funds would have cost a few communities $27.7 million over just 5 years.

However, nothing is settled until the Legislature fully votes on it (today and Thursday) and the Governor signs the bill. AT&T lobbyists don't get paid to create fair compromises and surely aren't finished scheming. So make sure you have made your thoughts on this matter known to your elected officials. The Rootstrikes make it easy. Don't forget to tell the Governor too -- the line-item veto is a powerful tool.

Some more details have emerged regarding the damage to local budgets that would occur if the Leg requires the stimulus awards to be returned, in the Superior schools, for instance:

"We would pay about five times more for the internet access than we already pay through Wiscnet," said Nordgren [Associate Vice Chancellor of UW Superior].

The Superior School District said they would also lose money, because they have already invested $300,000 in anticipation of the project.

"We utilized the funding from this broadband grant in order to purchase and update our website that was archaic," said Janna Stevens, Superintendent at the Superior School District.

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The Wisconsin League of Municipalities vociferously opposes language harming WiscNet [pdf]:

Finally, we strongly oppose JFC’s decisions to dismantle WisNet and to reject $37 million in federal dollars for promoting broadband service in rural Wisconsin. Many libraries and city halls around the state save taxpayers’ dollars by using WisNet as their Internet provider. This change benefits private Internet service providers at an additional cost to taxpayers. At a time when both the Administration and the Legislature are preaching government frugality, it doesn’t make sense to take away some of the very tools local governments use to reduce spending. We urge the Legislature to reverse these JFC amendments.

If there is one lesson we can take away from this fight, it is the need to build strong networks that can quickly respond to the tricks companies like AT&T can do in their power-center: state capitals and DC. This provision was obviously intended to benefit AT&T and a few other companies at the expense of all Wisconsin, particularly its schools and libraries. But WiscNet and defenders responded quickly and powerfully to the attack. And when they did respond, they did so with various arguments, including the cost to libraries and schools. If you can't tell a legislator how it impacts a budget somewhere, you probably aren't being heard.

Internet2 President Says Wisconsin Legislation is an Unnecessary Disaster

Internet 2 President H. David Lambert offers some sober words [pdf] to Wisconsin's Governor Walker regarding an 11th hour provision inserted into legislation by AT&T and its telco allies that will kill WiscNet, an essential telecommunications network serving libraries and schools throughout the state. We wanted to note it because it goes beyond WiscNet alone and reminds us that companies like AT&T simply have the wrong incentives to be solely trusted with the future of something as important as ensuring everyone has affordable, reliable, and fast access to the Internet.

Dear Governor Walker,

Today we write to ask for your leadership in removing sections 23-26 of the University Omnibus legislation.

For the United States to be a leader in the global economy, it is critical that government policy does not stifle innovation. One way to inadvertently undermine state and national economic competitiveness goals is to bar those who have been successful in the past from continuing to innovate while creating bureaucratic rules to limit who is eligible to provide services to the marketplace. And, without question, the University of Wisconsin's initiatives and Wisconsin's not for profit Wiscnet have been resounding successes that have changed the lives of citizens in Wisconsin and throughout the world.

Draft language Bars Innovation and Reduces Market Choice

The University of Wisconsin has long been recognized as one of the critical contributors responsible for the creation of the Internet. It was the University's faculty leaders who championed the idea of interlinked networks over distance and who prototyped those ideas in real-world settings that evolved into the Internet. Even as telephone providers steadfastly argued that the concept of the Internet would fail, faculty leaders at the University of Wisconsin built the large-scale innovation prototypes that led to the development of the global Internet.

It would be the height of irony if sections 23-26 of the University Omnibus legislation were passed, as those provisions would prohibit the University from being directly involved in proving out further developments of innovations in the Internet that it helped create. This would deny the University the ability to participate in the innovation cycle that created the market for commercial providers (including those who support the 11th hour insertion of sections 23-26) to provide their services in the first place. Commercial providers who many years ago argued that the Internet cannot succeed were wrong, and those commercial providers today who support the addition of sections 23-26 are equally wrong when they claim that proven innovation leaders like the University should be barred from participating in innovation, thereby ensuring that they cannot repeat their successes. Such an approach may benefit other countries (because the U.S. will continue to fall behind in comparison), and it may benefit profit-maximizing telecommunications entities that can then charge higher rates for services or for outdated technologies. But such restrictions surely do not benefit the citizens of Wisconsin or this country.

According to the well-known adage, "those who don't learn from history are doomed to repeat it." Here, where history provides a roadmap of what works and who made it work, those who refuse to learn from history are not only missing out on a golden opportunity, they are also jeopardizing the United State's leadership role in the global economy. Any such move that places the U.S. at risk should not be taken lightly, let alone this quickly. There simply is no need to rush to pass legislation to limit our options.

The citizens of Wisconsin know how the Internet has played a critical role in creating and growing the economy that now shapes our global business environment. The Internet creates opportunities for Wisconsin businesses to compete not just in state or regionally, but globally too. To stay competitive, Wisconsin needs the most innovative network technologies, and it needs innovative network providers like Wiscnet and the University of Wisconsin to continuously push the envelope of possibilities and assure that future innovations are possible in Wisconsin.

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The Proposal would reduce the University to a Third-World Player in the Global Race for Research Leadership. The University of Wisconsin is also recognized globally as a major research institution with collaborations in science, technology and business reaching throughout the United States and globally. Big science is increasingly global, with the global high-energy physics collaboration now centered in Geneva and distributed through networks, with astronomers now reliant on networked observatories outside the US and with bioscience reliant on genome databases also networked throughout the world. Over $1B in annual research funding that flows in to the Wisconsin economy depends on the University's ability to connect globally to the critical and massive information sets available only through research and education networks, like those operated by the University, Wiscnet and Internet2.

Yet, just when other states in the country are scrambling to invest in network infrastructure to help their universities rise to meet the international research and education challenge, this legislation could essentially disconnect Wisconsin from the global research it now leads. The result would be devastating. As the only intensive research institution in the United States that would be barred from participating in its own networks, Wiscnet and Internet2, the University, with respect to the ability to participate in global research, would become an immediate equivalent of a third-world University.

With respect to the University of Wisconsin's Research programs, serviced by its own networks and Wiscnet in the state and by Internet2 at the national and global scale, the essential and global collaborative nature of the research work would be effectively ended if sections 23-26 were passed. Such sections are so sweeping and overly broad that they would render the University of Wisconsin the only research-intensive university in the country that was not permitted to participate in 21st century science, which relies on 21st century connectivity like that, provided by the University and Wiscnet.

Harm to Government Users of Services

Finally, to artificially limit competition for the provision of services to governmental entities, such as schools, libraries, community colleges and local government, will likely result in higher prices and lower quality services to such governmental entities. Forcing governmental entities to pay more for their services (while potentially receiving lower quality), is counterintuitive in this age of tremendous budget issues and emphasis on quality of education. The legislature should be looking for further ways to expand options in the marketplace for schools and libraries — not for ways to restrict such options.

We are hopeful that the last-minute language restricting Wisconsin's flexibility to innovate and compete on the global stage will be rethought by the committee and the legislature. Restricting the University from participating in innovation, restricting the private sector not-for-profit Wiscnet from competing with other private companies for the state's business and ignoring the University's role in creating the very Internet technology that these private companies now wish to profit from will not serve Wisconsin, or the nation, well.

We strongly urge the committee and legislature to reconsider and remove sections 23-26.

Does AT&T Really Own the Wisconsin Legislature? Battle Over WiscNet Continues

There are many places to find information about AT&T's war on WiscNet, a great credit to those who recognize the importance of WiscNet to schools, libraries, and local governments around the state. The best article on the subject may be from Wisconsin Tech News (WTN), with "UW faces return of $37M for broadband expansion in 11th hour bill." This post builds on that as a primer for those interested in the controversy.

Update: Read a Fact Check Memo [pdf] from the University of Wisconsin Extension Service with responses to false allegations from AT&T and its allies.

Synopsis

AT&T and its allies have long made false claims against WiscNet, setting the stage for their lobbyists to push this legislation to kill it. AT&T and some other incumbents want to provide the services WiscNet provides in order to boost their profits. WiscNet not only offers superior services, it offers services the private providers will not provide (including specialized education services). For instance, from the WTN article:

One of features that differentiates WiscNet from a private broadband provider is allowing for “bursting,” so that during isolated periods when researchers send huge data sets, they greatly exceed the average data cap. UW-Madison currently uses seven gigabits on average, and would have to procure 14 gigabits under the new legislation, even though most of the extra seven gigabits would seldom be in use, Meachen [UW CIO] said.

“We'd be paying for the fact that researchers have to send these huge data sets, and not have it take hours and hours to get to where it's going,” Meachen said. “You can't afford to pay for that extra 7 gigabits from the private sector because it's too costly. They increase your charges based on that.”

A private network would not have the necessary capacity for scientists on the UW-Madison campus, who are some of the leading researchers on next generation Internet. A previous recommendation to combine BadgerNet and WiscNet was deemed infeasible, as AT&T would own the network and would not be able to provide sufficient bandwidth at an affordable cost, Meachen said.

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WiscNet is a buying cooperative, offering far lower prices to schools, libraries, and local governments than they would have to pay the private sector for similar services. More importantly, its costs increase much more slowly over time than similar connections from the private sector as community anchor institutions need faster and faster connections.

Killing WiscNet means more tax dollars going to AT&T rather than keeping cops on the streets, teachers in schools, and libraries open longer hours. These public institutions are all struggling to make ends meet and an end to WiscNet means radically increasing telecom budgets.

Professor Andy Lewis of the UW Extension Service, explains the cost differential:

While being very reliable BadgerNet is NOT affordable to many community institutions. For example, a 100Mbps service is $6,000 a month and a 1,000Mbps service is $49,500 a month. … The UW grant clearly shows a return on investment of 3.5 – 4.5 years. After that an institution will be able to get 1,000Mbps service for about $10,000 annually vs. $594,000 annually, which is the current BadgerNet rate.

Background

BadgerNet is a physical network comprised of leased lines connecting libraries, schools, local governments, and other public institutions throughout Wisconsin. Badgernet is almost entirely owned by AT&T and its costs are heavily subsidized via state and federal programs. WiscNet provides services over those connections, including Internet access. WiscNet has been providing Internet service since 1991 whereas BadgerNet was built in the mid 90's. For more, this pdf offers background.

Tad Pinkerton, Emeritus Professor of Computer Sciences and "Father of WiscNet" explains WiscNet (with a clarifying comment from me in []):

My colleagues and I brought the Internet to the UW System and to other higher education institutions in Wisconsin, and to public schools and libraries throughout the state through a non-profit association called WiscNet. The budget proposal that would prohibit future work of this kind is a travesty. Research depends on using the very latest communications tools and capacity to be competitive, and these tools are not provided in Wisconsin by telecommunications companies. The UW-Madison must buy its access to them wholesale, and supplement them substantially with its own networking expertise. This expertise and capacity is then made available in the rest of the state through WiscNet [WiscNet contracts for this expertise, it is not provided for free by UW]. WiscNet also provides a collaborative environment in which like public institutions can pool their expertise to maintain services at a high level in this rapidly developing technology. Neither advanced networking nor such collaboration can be provided at retail by Wisconsin's private sector, despite their protestations to the contrary.

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Lying and Lobbying

AT&T and its Republicans make the same bogus claims we see across the country in situations like this. They claim that despite being one of the largest corporations in America, they are the underdog and need special legislation to protect their interests. From the WTN article:

Republican lawmakers and the Wisconsin Telecommunications Association say the university should not be in the business of providing telecommunications services, and are in favor of shifting reliance back to BadgerNet, a state-run network that consists of private telephone companies, small and large, including AT&T, that band together to offer services to the education community in the state.

Bill Esbeck, executive director of the Wisconsin Telecommunications Association, says existing state law already prohibits the UW system from offering, reselling or providing telecommunications services that are available from private telecom carriers.

“WiscNet as an entity can continue to operate, we just think it should operate without a taxpayer subsidy,” Esbeck said. “We firmly believe some of the other telecom ventures at the UW are contrary to the existing state statute.”

Of course, if UW is really violating the statute, AT&T can take it to court. Why don't they? Massive incumbents sue competitors all the time for the flimsiest of reasons just to harass and tie them up in court. They don't go to court because WiscNet is not violating the statute and has welcomed a state audit to put an end to these allegations.

AT&T knows it best course is not via the courts, where it will lose but rather in the Legislature, where it vast lobbying power gives it the most advantage.

The charges that WiscNet is somehow competing unfairly with public tax dollars is absurd on its face. Though WiscNet does not receive the subsidy claimed by AT&T and its allies, even if it did, that subsidy is nothing compared to the subsidies provided to AT&T and its allies from state and federal programs to expand broadband access.

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Impact

Again, from the WTN article:

Meachen says the telecom provision means high stakes for both the State of Wisconsin and for the university. The provision calls for the UW System to completely disassociate with WiscNet by July 2012.

“We created WiscNet, which is now a member owned and operated cooperative with an independent board,” he said. “So, we are forbidden to work with them, and they are our network provider, so we would have to start over from scratch and completely recreate our network. I can't even estimate the cost of that.”

If the UW System used BadgerNet to meet its current bandwidth requirements, it would pay an estimated $8 million a year, Meachen said. It currently costs the UW System $2 million a year for WiscNet, which is provisioned so that the costs to the customers do not increase with increasing bandwidth. Instead, the fee is based on the size and type of institution.

Using what he calls a conservative estimate, Meachen says the UW System would spend $27 million for BadgerNet by 2016, based on an annual growth rate of 35 percent.

“I, for one, would not want to stand before the taxpayers having just spent $27 million of their money when I knew I could have done the same thing for $2 million,” Meachen said.

The language is so broad, it would preclude participation in essential networks for scientific collaboration, like Internet2. AT&T and its allies claim this is a misinterpretation, but the language is pretty clear, as we noted previously.

Another article looks at the impact on Madison schools:

The Madison Metropolitan School District has used WiscNet as a provider for all of its network services, including Internet, email and online teaching tools, for 17 years. For the last 12 years, the district has been required to bid out to private organizations to see what service was cheaper, and it said WiscNet has always been a better value.

"If we were to change to an alternative Internet service provider right now, my estimate is the immediate cost to the district would be approximately 70 percent higher right now, and that doesn't count the services that WiscNet brings to the table for free," said Mark Evans, director of technology services at the Madison Metropolitan School District.

View the video accompanying that story:

Wisconsin Returns More Stimulus Money

Despite ranking 43'rd in broadband among 50 states on the National Broadband Map, the present Wisconsin state government seems determined to return all federal assistance in expanding broadband access.

This language also requires Wisconsin to return tens of millions of dollars in broadband stimulus awards to a public-private partnership. Returning these funds would be a tremendous blow to Packerland Broadband / CCI Systems, the private sector partner that has already invested millions into the project.

Yes, you read that correctly. AT&T and some other incumbents had their opportunity to work with the partners in this stimulus project and chose not to. Now they are trying to kill the project so they will remain the only remaining option to provide connections to these community anchors… charging far more for far less than the stimulus project would provide.

In order to qualify for the stimulus, those involved documented that the connections they need were not available from incumbents. It is not that incumbents cannot provide services like dark fiber, they just prefer not to because the profit margin is smaller than on the services they want to provide.

If AT&T and allies are successful, they will be proverbial dog in the manger: they will not provide the needed connections on reasonable terms and will use their lobbying clout in the capital to ensure no one else can either.

What to do

If AT&T is really so concerned about WiscNet violating the law, it should pursue the matter in court or in the normal legislative process rather than attaching this language in the 11th hour of the budget process. Just because AT&T has the clout to pass its false talking points off as truth should not make the Legislature agree to kill off an essential tool for schools, libraries, and local governments without a proper hearing.

If you are in Wisconsin, contact your elected officials and respectfully urge them to remove sections 23-26 of the UW System Budget Bill. Explain that WiscNet is essential for schools and libraries across the state and if they Legislature has concerned with how it operates, they should have proper hearings and an audit to establish some facts. Find your legislators using this tool.

Pass resolutions, as some have already started from relevant organizations. Resolutions show support and are a good organizing tool.

If you are not in Wisconsin, alert those who are and encourage them to act immediately. This could be decided as early as Tuesday

For more information or points you can make in your letter or conversation, visit Save WiscNet, this helpful post from ijohnperderson, or the ever-growing list of letters in support of WiscNet.

Pants on fire photo used under creative commons license courtesy of Flickr's Brad Gillette