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preemption
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New Ideas in Competition Policy
A new report out from Vanderbilt University's Policy Accelerator re-emphasizes some of the important steps federal government agencies could take to make sure that upcoming Broadband Equity, Access, and Deployment (BEAD) funding is used as efficiently and equitably as possible.
New Ideas in Competition Policy covers ground beyond the broadband space - including agriculture, commerce, energy, and more - but authors Ramsay Eyre and Ganesh Sitaraman hit again some of the important and well-trod ground. Among them, they argue that:
- NTIA should remove the letter of credit (LOC) requirement for participating in BEAD entirely, as it is a barrier for new and smaller entrants.
- NTIA should consider all Rural Digital Opportunity Fund (RDOF) areas as eligible for BEAD funding, given the number and level of defaulting the program as seen.
- NTIA should effect a rulemaking that takes a strong stance against state municipal preemption laws, either by refusing final proposals from those states or issue a rule preempting these laws itself.
The Vanderbilt Policy Accelerator conducts research and writes about markets of all different shapes around the United States.
Roanoke Cooperative Thinks Big With North Carolina Fybe Fiber Expansion
North Carolina’s Roanoke Cooperative continues to make steady progress with expansion of its Fybe last mile fiber network within The Tar Heel State.
Cooperative officials tell ILSR that the cooperative and a coalition of organizations across North Carolina have major expansion plans in the works, starting with a fiber build in Halifax County, population 47,298.
Currently, Fybe provides fiber broadband service to around 6,000 subscribers in North Carolina, but thanks to an historic infusion of federal and state grants, the hope is to expand fiber access to the bulk of unserved addresses county-wide.
Fybe COO Bo Coughlin tells ILSR that the lion’s share of the cooperative's upcoming efforts to bring affordable connectivity to unserved and under-served portions of North Carolina will be under the banner of a coalition dubbed Encore, a nonprofit collaboration between MCNC, North Carolina Electric Membership Cooperatives (EMC), and Fybe.
“MCNC has been around for 40 years,” Coughlin notes. “It started as an economic Development institution funded by the state. Their goal was originally to help birth the microchip industry in RTP down in Raleigh, but today they provide transport to around a hundred universities, charter schools, and community anchor institutions across nearly 100 counties.”
Back in April, Fybe won a $9 million Growing Rural Economies with Access to Technology (GREAT) grant to help bring fiber to the largely underserved, heavily-rural residents of Martin, Bertie, Halifax, and Hertford counties.
“So currently, we pass about 5,000 total homes across Northampton and Halifax,” Coughlin said of Fybe’s current footprint.
‘Innovation’ Think Tank Pushes Lazy Smear Of Community Broadband
Here at ILSR we’re no stranger to telecom monopoly-backed efforts to mislead the public about the significant benefits of community owned broadband access.
That’s why a new “study” by the industry-backed Information Technology and Innovation Foundation (ITIF) maligning municipal broadband doesn’t come as much of a surprise.
The study professes to take a look at a very small number of municipal broadband networks, then makes sweeping and patently false claims about the entire sector.
“In most cases, local governments have neither the competence nor the economies of scale to deliver broadband as well as private ISPs,” the study concludes. “So, favoring government-owned networks wastes societal resources, creates unfair competition, and is frequently unsustainable in the long run.”
There’s numerous problems here. One being that the survey only looked at 20 municipal broadband networks in a country where more than 450 community broadband networks – serving close to 800 different communities – now pepper the American landscape.
The study author acknowledges the study’s sample size was “too small for the data to represent all U.S. [government-owned broadband networks] reliably,” then proceeds to make broad sweeping assumptions unsupported by any actual evidence.
LUS Fiber Brings Popular Broadband Service Into Church Point, Louisiana
Lafayette Utilities System’s LUS Fiber subsidiary is taking the show on the road. Louisiana’s only publicly-owned broadband provider says it’s expanding access into nearby Church Point, bringing affordable fiber access to the town of nearly 4,200 residents.
LUS Fiber was awarded a $21 million grant to expand fiber outside of Lafayette as part of the U.S. Department of Commerce’s National Telecommunications and Information Administration’s (NTIA) Broadband Infrastructure Program (BIP).
“This expansion not only improves the lives of our residents but also enhances opportunities for businesses, education, and healthcare in our town,” Church Point Mayor Ryan ‘Spanky’ Meche said in a prepared statement. “LUS Fiber’s work here is a tremendous step forward for our community.”
The expansion is part of a series of new broadband deployments that should bring more than one million feet of new fiber options to numerous new Louisiana communities, including Ville Platte, Venice, Mamou, and Basile. Church Point residents are currently able to start scheduling installations via the LUS Fiber website.
The deployments technically began earlier this year, starting with Ville Platte, which data indicates, currently has the fifth-slowest average broadband speeds in the continental U.S.
Like most of America, much of Louisiana is dominated by a handful of regional telecom monopolies that see little competitive incentive to compete on speeds, coverage, prices, or quality customer service.
Survey Shows Rising Broadband Costs, Broad Support For Government Help
A recent U.S. News And World Report survey of U.S. broadband subscribers shows that Americans are increasingly paying more money for broadband access.
The survey also indicates broad public support for the recently defunded Affordable Connectivity Program (ACP), and other government-backed efforts to cap soaring broadband subscription costs.
The organization surveyed 2,500 adults from the country’s five most populous states; 500 broadband subscribers each in California, Texas, Florida, New York, and Pennsylvania.
Not too surprisingly, the survey found that consumers consistently are paying more for broadband than the advertised price, either thanks to steady rate hikes, or the broad use of often sneaky, hidden fees to jack up the advertised cost of service.
Most Americans remain trapped under a monopoly or duopoly for next-generation broadband (broadband defined as faster than 100/20 megabits per second, or Mbps) access. This lack of competition results in high prices, slow speeds, spotty access, substandard customer service, and an increased occurrence of net neutrality, privacy, or other anti-consumer violations.
The survey found the average U.S. subscriber bill at sign up is now $81 – up from the $77 average monthly price seen in the outlet’s April 2024 survey report. But the average broadband subscription cost when the bill actually arrives was now $98 per month; up from $89 just six months earlier. For most, $100 broadband access is right around the corner.
Arkansas Electric Cooperatives Pass 1 Million Broadband Connection Milestone
The Electric Cooperatives of Arkansas say they recently finished delivering fiber broadband capability to more than one million Arkansans as part of a $4.66 billion expansion.
More than 40,000 miles of fiber have been installed by 17 cooperative broadband providers, including 15 local broadband providers, one wholesale broadband provider, and one middle-mile fiber company.
In a prepared statement, Arkansas cooperatives indicate they have $2.2 billion in additional projects lined up connecting an additional 13,000 residents in the “Natural State.” Once completed, Arkansas cooperatives will have deployed 53,000 miles of fiber and connected 1.2 million state residents to fiber.
Informed by their efforts at rural electrification nearly a century earlier, U.S. electrical cooperatives have increasingly been pushing into fiber broadband deployment. Initially as a way to better monitor and manage complex modern electrical grids, then ultimately as a way to extend access to predominately rural customers trapped on the wrong side of the digital divide.
Nearly 80 percent of the state cooperatives’ investment in fiber infrastructure has been self-funded without grant subsidies, the coalition notes. Many of the markets they’ve targeted have long been neglected by regional cable and phone giants that believe the investment into rural counties isn’t worth the time and resources, or won’t be profitable enough, quickly enough for Wall Street.
The State of State Preemption: Stalled – But Moving In More Competitive Direction
As the federal government makes unprecedented investments to expand high-speed access to the Internet, unbeknownst to most outside the broadband industry is that nearly a third of the states in the U.S. have preemption laws in place that either prevent or restrict local municipalities from building and operating publicly-owned, locally-controlled networks.
Currently, there are 16 states across the U.S. (listed below) with these monopoly-protecting, anti-competition preemption laws in place.
These states maintain these laws, despite the fact that wherever municipal broadband networks or other forms of community-owned networks operate, the service they deliver residents and businesses almost always offers faster connection speeds, more reliable service, and lower prices.
In numerous cases, municipal broadband networks are able to provide low-cost or free service to low-income households even in the absence of the now expired federal Affordable Connectivity Program (ACP). And for several years in a row now, municipal networks consistently rank higher in terms of consumer satisfaction and performance in comparison to the big monopoly Internet service providers, as PCMag and Consumer Reports have documented time and time again.
Nevertheless, these preemption laws remain in 16 states, enacted at the behest of Big Cable and Telecom lobbyists, many of whom have ghost written the statutes, in an effort to protect ISP monopolies from competition.
The Infrastructure Law Was Supposed to Move the Preemption Needle But …
Revisiting the Fight for Community Broadband and Public Networks - Episode 620 of the Community Broadband Bits Podcast
In this special episode of the podcast, Chris is joined by Gigi Sohn, Executive Director of the American Association for Public Broadband (AAPB). Originally aired last summer, they discuss the crucial role of state and local governments in broadband policy, efforts to grow community broadband networks across the U.S., and the ongoing challenges these networks face from incumbents and dark money groups.
Gigi also shares insights into her work with Benton, where she helps build coalitions in Missouri, Arizona, and Pennsylvania to ensure effective use of broadband funding. Additionally, the conversation highlights AAPB’s mission to double the number of municipal broadband networks in five years and the importance of defending these networks from attacks like those in Bountiful, Utah.
This show is 47 minutes long and can be played on this page or via Apple Podcasts or the tool of your choice using this feed.
Transcript below.
We want your feedback and suggestions for the show-please e-mail us or leave a comment below.
Listen to other episodes or view all episodes in our index. See other podcasts from the Institute for Local Self-Reliance.
Thanks to Arne Huseby for the music. The song is Warm Duck Shuffle and is licensed under a Creative Commons Attribution (3.0) license
Timnath, Colorado Breaks Ground On New $20 Million Fiber Build
Timnath, Colorado officials have broken ground on a new $20 million fiber network that should dramatically expand affordable fiber access to the town of 7,100 residents.
Working in partnership with the city of Loveland’s Pulse Fiber, the project has been several years in the making, and – as with most of the successful municipal operations in Colorado – was fueled by ongoing public frustration with the speed, availability, and cost of monopoly-dominated regional broadband access.
“This project is about more than just Internet access,” Timnath Town Manager Aaron Adams said in a statement.
“It’s an investment in our future, ensuring that we have the infrastructure in place to support economic growth, attract new residents and businesses, and improve quality of life for everyone in Timnath.”
Last year the two cities signed an Inter-Governmental Agreement (IGA) greenlighting the plan to bring ubiquitous, affordable high-speed Internet access to Timnath. Under the arrangement, Tinmath is slated to receive 25 percent of the network’s gross income. That should equate to a 2 to 6 percent return on capital investment over 20 to 30 years, with the network fully paid off in 26 years.
Timnath’s project was heavily funded by the town’s capital improvement funds, which were in turn bolstered by broadband grants received via the 2021 American Rescue Plan Act (ARPA).
Fort Collins Municipal Network Celebrates 20,000 Subscriber Milestone
Fort Collins, Colorado has repeatedly won awards for being a trailblazer in the municipal fiber space, and local subscribers continue to take notice. The city-owned and operated Connexion network operation just announced it has passed the 20,000 subscriber mark, after nabbing a significant new wave of state and federal funding for expansion earlier this year.
Fort Collins began thinking about a citywide fiber deployment as early as 2012. By 2015, locals had voted to exempt the city from a counterproductive state law restricting communities from building their own broadband networks.
Construction of the municipal network began in 2018. Subscribers began to connect to the network in 2019, and by 2023 fiber service was available to every last home and business in the city of 169,000.
Thanks to local leaders, city residents now have access to some of the fastest, most affordable broadband available anywhere, including symmetrical 1 gigabit per second (Gbps) service for $70 a month; symmetrical 2 Gbps service for $100 a month; and symmetrical 10 Gbps service for $200 a month. Connexion service comes with no usage caps or long-term contracts.
As part of its celebration of reaching 20,000 subscribers, Connexion officials say they will give away a year of free Internet access to 20 subscribers chosen at random.
To mark the occasion, Chad Crager, Executive Director of Fort Collins Connexion, said: