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Verizon Quits ALEC After Group Hands Microphone to Right-Wing Provocateur David Horowitz

Down one big member — Verizon

Verizon has quit the American Legislative Exchange Council (ALEC), a corporate funded alliance between big business and Republican state lawmakers, after right-wing activist David Horowitz used a guest appearance at the 45th ALEC Annual Meeting in New Orleans to launch into a tirade against opponents of President Donald Trump, claiming Democrats are socialists bent on attacking traditional American values.

To rousing applause from many of the 1,500 legislators and lobbyists in attendance, Horowitz used two speeches to attack the LGBTQ community, people of color, public education, feminism, gender equality, and the rights of women to seek independent access to reproductive healthcare.

Specifically, Horowitz claimed public schools are “indoctrination and recruitment centers for the Democratic party and its socialist left” and that “school curricula had been turned over to racist organizations like Black Lives Matter and terrorist organizations like the Muslim Brotherhood.” On a later panel, Horowitz told the audience Trump had not gone far enough attacking his enemies, and defended the president’s remarks calling a woman “a pig.” Those who disagreed were called “communists” by Horowitz.  He also argued the United States could only have been founded by Protestant Christians.

Horowitz speaks at ALEC conference in August 2018.

The incendiary remarks are nothing new for Horowitz, who repeatedly called President Barack Obama “a secret Muslim” and sponsors a website that claims Muslim migrants are carriers of infectious disease and predators with a “violent lust for ‘white’ women.”

Rep. Chris Taylor (D-Wisc.) attends ALEC events often to learn more about what the opposition is doing. Her observations from this year’s conference reflect ALEC in disarray, as the formerly unified, corporate-focused group is becoming more fragmented as emboldened right-wing activists demand a voice at the table.

They want state’s rights, except when they don’t. The same contradiction is evident with their struggle with local control–sometimes they like it, sometimes they don’t. The defining factor is whether these levels of government promote the far-right ALEC agenda. It is getting harder and harder for ALEC to ignore these internal contradictions.

And there are visible cracks in ALEC world. Collectively, this was the messiest and least disciplined ALEC conference I have attended since 2013. In the energy task force, presentations were all over the place. A natural gas and electricity supplier went off script by openly discussing the billions in subsidies the oil and gas industry receives. There was silence in the crowded task force room, filled with fossil fuel producers and lobbyists.

[…] In the Health and Human Services task force, the Goldwater Institute and Buckeye Foundation were in a tizzy because the Affordable Care Act (ACA) was still in existence and the left seemed to win that war, at least for now. How could it be, they moaned, when Republicans are in charge of EVERYTHING? They whined that the “debacle of last year was horrible” and that Congress wouldn’t touch another repeal with a 10-foot poll. So, 100 conservative groups came together to propose an alternative plan that guts the ACA, again. But the list was messy and confusing, and even the presenters seemed doubtful their plan would ever succeed.

But the biggest disaster I have ever seen at an ALEC conference was on a panel about the Convention of States (COS) project. COS is mobilizing in states to call an Article V Constitutional Convention for the purposes of amending the federal constitution by passing a balanced budget amendment, term-limits for federal judges, and who knows what else. One of the key speakers was right-wing provocateur David Horowitz. Horowitz is listed in a Southern Poverty Law Center (SPLC) report published by Alternet with the title “10 of America’s Most Dangerous Hatemongers”.

After converting from being a Marxist decades ago, Horowitz now runs his own right-wing think tank, bankrolled to the tune of $3.4 million by the Milwaukee-based Bradley Foundation, according to the Center for Media and Democracy. Horowitz gained recent fame as a key mentor of Trump advisor Stephen Miller, the man behind Trump’s family separation policy according to the Atlantic.

[…] ALEC is moving into dangerous territory. Despite the formidable infrastructure they have built over 45 years, their control of 33 state legislatures and their hordes of corporate cash that perpetually grease their wheels, the organization seems to be increasingly in disarray and in an identity crisis. While simultaneously distancing themselves from the chaos and corruption of President Trump, the reality is that they need him, and his hate-mongering, to further the foundation of their right-wing agenda–gutting the ACA and federal conservation standards, repealing workers’ rights, pushing down wages and privatizing public education.

And so the Horowitz’s of the world, who ALEC at least publicly has kept at a distance during my tenure, are now becoming part of the ALEC universe. Are ALEC supporters, including their corporate funders, willing to embrace this hate-mongering to continue to advance their corporate agenda?

Horowitz’s brand of politics may be popular with party activists, but corporate ALEC members are more concerned about their public image.

After Horowitz’s appearance, Verizon notified ALEC it was resigning from the group.

“Our company has no tolerance for racist, white supremacist or sexist comment or ideals,” a Verizon spokesperson said in a statement.

It is a severe blow to ALEC, which welcomed Verizon as a dues paying member in 1988, when Verizon lobbyist Ron Scheberle served as chairman of ALEC’s board.

ALEC’s damage control effort came in a statement to the press:

ALEC takes speaker vetting seriously and—in partnership with meeting sponsors—applies a rigorous process to identify speakers on important matters of public policy. Each speaker is apprised of the ALEC policy focus, how to address the audience and what issues not to discuss. ALEC does not work on social issues. Rather it focuses on limited government, free markets and federalism at the intersection of the economy and public policy.

In this case, the speaker was advised of the program parameters and did not abide the process.

Upon learning of concern following the conclusion of remarks, ALEC staff removed the video archive of the livestream and ceased promotion of the speech as the comments were inconsistent with the manner in which speeches are offered at ALEC.

ALEC was launched to give its corporate members and lobbyists direct access to state legislators to shepherd corporate ghost-written bills into state laws or at least heavily influence members’ bills to make them corporate-friendly. In some cases, corporate-written “model bills” were adopted word-for-word by some state legislatures and became law, with the help of Republican support and co-sponsors.

Rep. Taylor

Verizon and other telecom company members like Comcast and AT&T have benefited handsomely from membership in ALEC, successfully pushing through state laws for statewide video franchising, eliminating local control over cable television providers, pole attachment and zoning reform for wireless companies, working to eliminate universal service obligations and regulatory oversight for landline service, state bans on municipal broadband competition, and most recently working to stop states from writing their own net neutrality provisions to replace those lost on the federal level.

ALEC has always maintained close ties to Republicans and its deep pocketed corporate members. But until recently, it has usually shied away from headlining lightning rod social issues out of deference to its controversy-shy corporate members.

Horowitz’s remarks, live-streamed across the internet by ALEC, may have been the final straw for Verizon. In late August, 79 public interest and environmental groups co-signed a letter to ALEC members drawing attention to Horowitz’s remarks and asking companies to leave the group for good.

“Make no mistake, your continued financial support of ALEC is an endorsement of this dangerous vision for our country,” the letter said.

It’s also apparently bad for business.

David Horowitz speaking at 2018 ALEC Conference in New Orleans, La. on Aug. 10, 2018. (17:51)

Only Co-Ops Can Fix West Virginia’s Dismal Broadband Desert

West Virginia still ranks 43rd in the nation for having the worst broadband availability, despite claims from providers like Frontier Communications that rural broadband expansion has been ongoing and have cost the company tens of millions of dollars.

The state’s two senators are working to get more attention on broadband issues in one of the country’s most rural and mountainous states, despite the fact the free market is not likely to solve West Virginia’s broadband woes.

“Broadband high-speed is tremendously needed,” said Senator Joe Manchin (D-W.V.). “We have over 18 to 20 percent of West Virginians not connected whatsoever.”

“I’m working everyday on this in a bipartisan way,” said Senator Shelley Moore Capito (R-W.V.). “It’s essential for our economy, our health care, our education. All of the things that are in a new economy.”

The federal government has distributed broadband grant funds to help address rural broadband unavailability, but after a decade of assistance, rural residents often remain without service. Charlie Dennie believes taking charge of broadband issues on the local level is the only way broadband problems will finally be resolved. Dennie is a big believer in public broadband co-ops, where local communities manage their own internet access affairs without waiting around for big phone and cable companies or the federal government. Dennie runs a business in the state that depends on broadband, and if he waited for incumbent providers like Frontier to deliver 21st century broadband service, his business is likely to go out of business.

That prompted him to write this commentary:

Dennie

Much of West Virginia is a broadband desert, and we have been foolishly pleading with the major carriers for water.

Recently, we seem to be coming to terms with reality. The reality is, they’re not coming, broadband is not a utility. The international, modern-day, robber barons dominating internet delivery have no obligation or incentive to meet our needs. Their aggressive return on investment models can’t be met in the small markets. Still, they attempt to roadblock appropriately scaled providers from entering the market and meeting our needs.

Since internet and cable TV are not utilities, the carriers are free to pick the low hanging fruit of our more densely populated communities and move on, leaving smaller markets stranded on the wrong side of the digital divide. The major carriers’ only obligations or concerns are with Wall Street. Main Street and all that term implies is not a consideration.

If we’re going to see our desert watered and blooming, we’ll be digging our own wells, meaning, building our own networks. The incumbent telephone companies and the cable TV providers bristle at this idea. The major providers spent over $66 million last year to lobby the states and Congress. Twenty-one states have now roadblocked or outlawed municipal or community-owned fiber. Municipal or community owned fiber is a serious threat to the status quo.

In years past, no one would have been surprised if West Virginia lawmakers had sat on their hands and done nothing or, enacted more protectionist legislation. That didn’t happen with this Legislature. Paraphrasing Bob Dylan, “The times they are a-changing.”

During the 2017 legislative session, I witnessed the boldest and most fearless leadership in my memory. The House of Delegates Judiciary Committee led by its chairman, Del. John Shott (R-Mercer), and Vice-Chairman, Del. Roger Hanshaw (R-Clay), introduced HB-3093. It was a sweeping piece of legislation sending a strong message to the incumbent internet providers to provide better service or make room for someone who will.

Carmichael

HB-3093 created the West Virginia Broadband Enhancement Council, streamlined the process for attaching fiber to utility poles, cleared the way for new construction methods, authorized the West Virginia Economic Development Authority to make loan guarantees for broadband construction and authorized the creation of cooperative associations for internet. As a proponent of the legislation, I requested a public hearing. Gathering in the House chamber only hours before the vote, industry lobbyists voiced strenuous objections. The strongest objections to the bill were the provisions streamlining attachments to utility poles and authorizing cooperative associations to provide broadband.

HB-3093 passed the house with 97 votes. I spoke to Senate President Mitch Carmichael (R-Jackson), just before the bill was introduced in the Senate. Sen. Carmichael had the power to keep the bill from advancing and Frontier, his employer at the time, was out in force to stop it. Before the bill went to the floor Sen. Carmichael said to me, “They’ll fire me, but I have to do what I think is right.” HB-3093 passed the Senate with Sen. Mike Romano (D-Harrison), casting the single, dissenting vote. A few days later, Frontier Communications fired Sen. Carmichael. Today, there are some who want to “Ditch Mitch,” but I will always remember the day he was called to choose between his economic self-interest and what was best for his constituency. Mitch fell on his sword. He did what he thought was right.

It’s important to know where you have been to understand where you are going, and this is only a chapter of our emerging broadband story. Changing the rules that protect the powerful to move us forward requires courageous leadership. If you believe broadband isn’t a political issue, I can give you 66 million reasons why you couldn’t be more wrong.

Ironically, community owned networks will be good for the current providers. The community owned networks provide the “last mile” to the home or business that enables delivery of high-speed internet. The community networks still need the content provided by current carriers. The communities will have choices and can negotiate with providers. Everybody wins.

I’ll have more for you later. Meanwhile, visit the broadband council at https://broadband.wv.gov. Take the speed test, then look under the “Resources Tab” about co-ops. Ignore the naysayers. I’ll show you how co-ops will change everything.

Countries Moving at Light Speed to Expand Fiber, While U.S. Keeps Subsidizing DSL

This week, the FCC announced bidding has finished for the latest Connect America Fund (CAF) broadband subsidies auction.

Once again, the FCC gave first priority to incumbent phone companies to bid for the subsidies, which defray the cost of expanding internet access to homes and businesses otherwise unprofitable to serve. Nearly $2 billion was left on the table by disinterested phone companies after the first round of bidding was complete, so the FCC’s second round opened up the leftover money to other telecom companies.

Winning bidders will receive their portion of $198 million annually in 120 monthly installments over the next ten years to build out rural networks. In return, providers must promise to deliver one broadband and voice service product at rates comparable to what urban residents pay for service. The winning bids, still to be publicly announced, will come from rural electric and phone cooperatives, satellite internet providers, fixed wireless companies, and possibly a handful of cable operators. But much of the money overall will be spent by independent phone companies rolling out slow, copper-based, DSL service.

Because the total committed will take a decade to reach providers, rural Americans will likely face a long wait before what purports to be “broadband” actually reaches their homes and businesses.

While many co-ops will spend the money to expand their own homegrown fiber-to-the-home services, most for-profit providers will rely on wireless or copper networks to deliver service.

Telefónica Spain

Overseas, broadband expansion is headed in another direction — expansion of fiber-to-the-home service, with little interest in investing significant sums on furthering old technology copper wire based DSL and fixed wireless services. The expansion is moving so quickly, Verizon made certain to sign long-term contracts with optical fiber suppliers like Corning in 2017 to guarantee they will not be affected by expected shortages in optical fiber some providers are already starting to experience.

Virtually everywhere in developed countries (except the United States), fiber broadband is quickly crowding out other technologies, despite the significant cost of replacing copper networks with new optical fiber cables. If a provider is brave enough to discount investor demand for quick returns and staying away from big budget upgrade efforts, the rewards include happier customers and a clear path to increased revenue and business success.

Not every Wall Street bank is reluctant to support fiber upgrades. Credit Suisse sees a need for optical fiber today, not tomorrow among incumbent phone and cable companies.

“The cost of building fiber is less than the cost of not building fiber,” the bank advised its clients. The reason is protecting market share and revenue. Phone companies that refuse to upgrade or move at a snail’s pace to improve their broadband product (typically DSL offering 2-12 Mbps) have lost significant market share, and those losses are accelerating. Ditching copper also saves companies millions in maintenance and repair costs.

Canada’s Telus is a case in point. Its CEO, Darren Entwistle, reports Telus’ effort to expand fiber optics across its western Canada service area is already paying off.

“We see churn rates on fiber that are 25% lower than copper,” Entwistle said. “35% lower in high-speed internet access, and 15% lower on TV — 25% lower on average. We’re seeing a reduction in repair volumes to the tune of 40%. We’re seeing a nice improvement in revenue per home of close to 10%.”

Telus promotes its fiber to the home initiative in western Canada as a boost to medical care, education, the economy, and the Canadian communities it serves. (1:31)

Telus’ chief competitor is Shaw Communications, western Canada’s largest cable company. Fiber optics allows Telus to vastly expand internet speeds and reliability, an improvement over distance sensitive DSL. Shaw Cable has boosted its own broadband speeds and offers product bundles that have been largely responsible for Telus’ lost customers, until its fiber network was switched on.

In economically challenged regions, fiber optic expansion is also growing, despite the cost. In Spain, Telefónica already provides service to 20 million Spaniards, roughly 70% of the country, and plans to continue reaching an additional two million homes and businesses a year until the country is completely wired with optical fiber. In Brazil, seven million customers will have access to fiber to the home service this year, expanding to ten million by 2020.

Verizon and AT&T regularly ring alarm bells in Congress that China is outpacing the United States in 5G wireless development, but are strangely silent about China’s vast and fast expansion into fiber optic broadband that companies like Verizon stopped significantly expanding almost a decade ago. China already has 328 million homes and businesses wired for fiber and added another five million homes in the month of June alone. AT&T will take a year to bring the same number of its own customers to its fiber to the home network.

The three countries that are most closely aligned with the mentality of most U.S. providers — the United Kingdom, Australia, and Germany — are changing their collective minds about past arguments that fiber to the home service is too costly and isn’t necessary.

The government of Martin Turnbull’s cost concerns forced a modification of the ambitious proposal by the previous government to deploy fiber to the home service to most homes and businesses in the country. That decision to spend less is coming back to haunt the country after Anne Hurley, a former chief executive of the Communications Alliance involved in the National Broadband Network (NBN), admitted the cheaper NBN will face an expensive, large-scale replacement within a decade.

ABC Australia reports on findings that the country’s slimmed-down National Broadband Network is inadequate, and parts will have to be scrapped within 5-10 years (1:37)

Turnbull’s government advocated for less expensive fiber to the neighborhood technology that would still rely on a significant amount of copper wiring installed decades ago. The result, according to figures provided to a Senate committee, found only a quarter of Australians will be able to get 100 Mbps service from the NBN, with most getting top speeds between 25-50 Mbps.

Despite claims of technical advancements in DSL technology which have claimed dramatic speed improvements, Hurley was unimpressed with performance tests in the field and declared large swaths of the remaining copper network will have to be ripped up and replaced with optical fiber in just 5-10 years.

“If you look around the world other nations are not embracing fiber-to-the-[neighborhood] and copper … so yes, it’s all going to have to go and have to be replaced,” she said.

In the United Kingdom, austerity measures from a Conservative government and a reluctant phone company proved ruinous to the government’s promise to deliver “superfast broadband” (at least 24 Mbps) over a fiber to the neighborhood network critics called inadequate from the moment it was switched on in 2012. The government had no interest in financing a fiber to the home network across the UK, and BT Openreach saw little upside from spending billions upgrading the nation’s phone lines it now was responsible for maintaining as a spun-off entity from BT. In 2015, BT Openreach’s chief technology officer called fiber to the home service in Britain “impossible” and too expensive.

Two years later, while the rest of Europe was accelerating deployment of fiber to the home service, the government was embarrassed to report its broadband initiative was a flop in comparison, and broke a key promise made in 2012 that the UK would have the fastest broadband in Europe by 2015. Instead, the UK has dropped in global speed rankings, and is now in mediocre 35th place, behind the United States and over a dozen poorer members of the EU.

What was “impossible” two years ago is now essential today. The latest government commitment is to promote optical fiber broadband using a mix of targeted direct funding, “incentives” for private companies to wire fiber without the government’s help, and a voucher program defraying costs for enterprising villages and communities that develop their own innovative broadband enhancements. The best the government is willing to promise is that by 2033 — 15 years from now — every home in the UK will have fiber broadband.

Deutsche Telekom echoed BT Openreach with claims it was impossible to deliver fiber optic broadband throughout an entire country.

Deutsche Telekom’s dependence on broadband-enhancements-on-the-cheap — namely speed improvements by using vectoring and bonded DSL are increasingly unpopular for offering too little, too late in the country. Deutsche Telekom applauded itself for supplying more than 2.5 million new households with VDSL service in 2017, bringing the total number served by copper wire DSL in Germany to around 30 million. The company, which handles landline, broadband and wireless phone services, is slowly being dragged into fiber broadband expansion, but on a much smaller scale.

In March, Telekom announced a fiber to the home project in north-east Germany’s Western Pomerania/Rügen district for 40,000 homes and businesses. The network will offer speeds up to 1 Gbps. In July, Telekom was back with another announcement it was building a fiber optic network for Stuttgart and five surrounding districts Böblingen, Esslingen, Göppingen, Ludwigsburg, and Rems-Murr, encompassing 179 cities and municipalities. But most of the work will focus on wiring business parks. Residents will have a 50% chance of getting fiber to the home service by 2025, with the rest by 2030.

In contrast, the chances of getting fiber optic broadband in the U.S. is largely dependent on which provider(s) offer service. In the northeast, Verizon and Altice/Cablevision will go head to head competing with all-fiber networks. Customers serviced by AT&T also have a good chance of getting fiber to the home service… eventually, if they live in an urban or suburban community. Overbuilders and community broadband networks generally offer fiber service as an alternative to incumbent phone and cable companies, but many consumers don’t know about these under-advertised competitors. The chances for fiber optic service are much lower if you live in an area served by a legacy independent phone company like Frontier, Consolidated, Windstream, or CenturyLink. Their cable competitors face little pressure to rush upgrades to compete with companies that still sell DSL service offering speeds below 6 Mbps.

CAF funding from the FCC offers some rural areas a practical path to upgrades with the help of public funding, but with limited funds, a significant amount will be spent on yesterday’s technology. In just a few short years, residents will be faced with a choice of costly upgrades or a dramatic increase in the number of underserved Americans stuck with inadequate broadband. Policymakers should not repeat the costly mistakes of the United Kingdom and Australia, which resulted in penny wise-pound foolish decisions that will cost taxpayers significant sums and further delay necessary upgrades for the 21st century digital economy. The time for fiber upgrades is now, not in the distant future.

Proposal for Co-Op to Replace Charter/Spectrum Emerges in New York

New York City’s cable franchise territories

A proposal to replace Charter Communications’ Spectrum cable systems in New York with a workers co-op, owned and self-managed by its workers, would offer a bundle of television, phone, and broadband service price-capped at $100 a month for residential customers.

Developed by several dozen striking Charter/Spectrum workers, the 18-page proposal, “New York City Communication July 2018 Business Plan” would, for now, address only the five boroughs of New York City and nearby Bergen, N.J. But Troy Walcott, a striking member of the International Brotherhood of Electric Workers (IBEW) Local 3, says the current proposal was written as “a proof of concept” that can be adopted across New York State.

“The best time is now,” Walcott told LaborPress, noting that if the city (or state) decided not to renew Charter Communications’ franchise agreements in the city, there will still be a few years left before it expires, giving the proposed co-op time to develop its own network or plan to overhaul what was originally Time Warner Cable’s system in places like Manhattan.

A citywide co-op would also introduce competitive service in boroughs presently serviced by Altice, formerly Cablevision. The group would have to build its own network in those areas. If New York revokes Charter’s franchise, the cable system would likely take the city and/or state to court, setting up years of litigation. Past precedent has shown that cable systems abandoning or forced from an area are exceptionally rare, and usually involve a friendly sale of the existing system to another provider. One example was Adelphia Communications Corporation, which ran the fifth largest cable company in the country until it filed bankruptcy in 2002 after investigators revealed internal executive corruption. Adelphia systems were sold to Comcast and Time Warner Cable in most areas, although the communities of Mooresville, Davidson, and Cornelius, N.C., acquired the bankrupt Adelphia system serving parts of the three communities in 2007 for $80 million, relaunching it as a community-owned cable provider with mixed results.

A workers co-op is owned and run by its workers in the public interest.

If New York does strip Charter of its Spectrum cable franchises in the state, and if that effort survives the inevitable court challenges, Charter would likely sell its systems in New York to Comcast, an obviously motivated buyer. Another possible, but less-likely buyer is Altice, which acquired Cablevision and already provides service in parts of downstate New York, New Jersey, and Connecticut.

Charter is facing multiple investigations in New York over its business conduct. In New York City, where its franchise agreement is set to expire July 18, 2020, the company is under fire for its creative interpretation of “located in New York City” — language in Article 17 of the franchise agreement which requires Charter to use vendors registered to do business in New York, have a long-term commercial lease in New York, and more than 50% of its workforce living in New York.

With a substantial amount of its workforce on strike in the area for the last year and a half, and the industry’s trend to shift work to third-party contractors as a cost saving measure, the IBEW has been documenting instances of Charter-badged commercial vehicles parked overnight behind a Far Rockaway florist shop or in residential neighborhoods, often with out-of-state license plates.

Charter officials deny those accusations, and claim at least 75% of its vendors and contractors are located within New York City.

When Kate Blumm, assistant commissioner of the New York City Department of Information Technology & Telecommunications (DoITT) confronted Charter officials about its possible use of out-of-state vendors, the response from Charter was less than reassuring.

“Once we started to probe, we realized that Charter was essentially making the argument that if you are a worker and you are doing work in the city, therefore, you are located in the city,” Blumm said during the March 13 episode of the “Blue Collar Buzz” podcast. “They pointed us to a Macmillan online dictionary definition of what the word ‘located’ means — and we kind of looked at ourselves and were scratching our heads — this is not the spirit and intent of this provision. This provision says that Charter has to use best efforts to use vendors located in the city.”

As a result, the DoITT has pushed its franchise agreement audit one year earlier than normal, now scheduled to begin Sept. 1. The city’s concerns about Charter’s performance have been amplified at the state level by the New York Public Service Commission, which has hammered Charter executives for months about the company’s inability to meet its obligations under the 2016 Merger Order approving the takeover of Time Warner Cable.

“Not only has the company failed to meet its obligations to build out its cable system as required, it continues to make patently false and misleading claims to consumers that it has met those obligations without in any way acknowledging the findings of the Public Service Commission to the contrary,” said PSC Chairman John B. Rhodes. “Our patience with Charter has come to an end and now we must move to take much stronger actions.”

Mayor de Blasio

Backers of the cable co-op note many of those on their business plan development team have direct experience designing, surveying, building, and maintaining the existing Spectrum cable system originally owned by Time Warner Cable.

“We know the system because we built it,” Walcott said. “The system was already crumbling and the infrastructure needed to be redone. This is something that’s going to have to get done anyway. We’re saying, instead of letting them do it, let’s start doing it and rebuilding it ourselves — the people that are actually going to build it anyway.”

Finding enough money to proceed will be the co-op’s biggest challenge. New York City officials, like Mayor Bill De Blasio, are in favor of more cable competition in spirit, but are careful not to commit themselves, or the sizable sums required if the group decides to begin building a competing system or bid to acquire the current Spectrum system. So far, the New York City Council has committed to gradually increasing financial support for the development and cultivation of worker cooperatives, starting with $1.2 million in 2015 and increasing to $2.2 million last year. A full-scale acquisition of the existing infrastructure owned by Charter in New York would likely run into the billions of dollars.

The group hopes public demand and dislike of Charter/Spectrum will force elected officials to get involved in the effort.

Minnesota Candidate for Governor Proposes 100 Mbps State Border-to-Border Broadband

Murphy

Every Minnesota resident would receive access to high-speed internet service under a new proposal that would fund broadband expansion with sales tax revenue earned from out-of-state internet purchases.

The Connect MN plan, backed by the Democratic-Farmer-Labor Party (DFL) candidate for governor Erin Murphy, would offer rural and underserved Minnesotans 100/20 Mbps broadband service by 2026. To pay for the expansion program, Murphy proposes to invest $100 million annually in Minnesota’s Broadband Development Grant Program, which would provide funding to public and private providers to incentivize expansion into areas currently unprofitable to serve.

“For too long, we have talked about the importance of broadband at the Capitol without the investment needed to address the scope of the challenge,” said Murphy. “When I am Governor, we will move forward with a strategic plan that will connect every Minnesotan with the high-speed internet they need to succeed.”

Funding for the broadband expansion would come from new sales tax collections on out-of-state online purchases that have largely gone uncollected in the past. With the recent Supreme Court decision, South Dakota v. Wayfair, out-of-state retailers would be compelled to collect Minnesota’s sales tax when shipping items to a Minnesota address and remit the proceeds to the state government. The U.S. Government Accountability Office estimates more uniform collection of sales tax on out-of-state purchases will collect an extra $132-206 million for Minnesota annually. Dedicating much of that money to improve broadband service in the state could result in extending service to 550,000 unserved households — more than 26% of the state — within eight years.

Colored sections show areas lacking at least 25/3 Mbps broadband.

That level of investment would put Minnesota in the same league as New York, where in 2015 Gov. Andrew Cuomo announced a $500 million investment by the state in rural broadband expansion in an effort to achieve statewide broadband access by 2018. Cuomo’s plan is still under construction, and has been criticized for missing its end goal of universal coverage, with about 1-2% of state residents left with the option of satellite-delivered internet access.

Murphy’s plan would dramatically expand on her predecessor’s own broadband initiatives. Incumbent Gov. Mark Dayton’s (DFL) 2018 plan proposed to invest $30 million and reach 11,000 homes and businesses. Since taking office, Gov. Dayton claims to have secured enough funding to expand broadband access to 33,852 households, 5,189 businesses, and 300 community institutions in Greater Minnesota since taking office in 2011. Reaching the half million still unserved homes would take decades at current funding levels.

Murphy’s proposal also goes far beyond rural broadband expansion programs in other states. Tennessee currently offers a $45 million investment in rural broadband over three years — with less than $30 million specifically designated for rural broadband hookups. In West Virginia, a state ranked 43rd in wired broadband by the FCC’s 2018 Broadband Deployment Report, less than $2 million was available this year for rural broadband expansion, combining available funds from a Community Development Block Grant program with leftover money originally set aside for water and sewer projects.

Murphy claims universal access to broadband spurs innovation and drives economic development, education, healthcare and quality of life. One study indicates that a community will see a $10 return on investment for every $1 invested in broadband.

“This is a once-in-a-generation opportunity to make progress on an issue holding back too many Minnesotans in communities all over the state,” said Murphy. “It’s a critical step in ensuring that everyone in Minnesota can build a bright future for themselves and their families.”

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  • Dylan: Just isn’t that nice? I would drop them quickly if they told me that my plan was too “low” and I needed to upgrade and pay more for better service. Wh...
  • Dan: Nice job Verizon first throttle first responders then hurricane victims. Fcc step in oh wait. Ajuit pia is worse than useless he is anti consumer....
  • LG: I didn't hear these speeches, and really don't know if what he said was incendiary or hateful, but I do know the left-wing media cannot be trusted to ...
  • Dylan: 20gigs? Abysmal. I would use that in a couple of hours. Even 50. I’m certainly fortunate to have unlimited internet with Spectrum....
  • EJ: I wonder if they are going to extend service based on demand. That system is used by many telecommunication companies that are coming into a new area ...
  • Phillip Dampier: Just to clarify, I think they are throwing in a free or discounted dish, which isn't such a big deal if you can find a promotion that does the same. I...
  • EJ: Well I guess I should of scrolled down first lol. Question answered by the Verizon article. Good job Phillip. Note to self scroll down a few articles ...
  • EJ: My question is what exactly is HughNet doing with the money? They already offer free installation in most areas so what is this money going towards? A...
  • Mark Wilkinson: This is a nightmare. Life was good until Verizon sold us to Frontier. Our service has been cut off twice for non-payment of an "non-returned equipme...
  • Don: I don't even have Greenlight available yet at my address. I am in Gates and Greenlight is taking orders for my address so I look up to see what would ...
  • Jon Belkin: Since it launched, XFINITY Mobile (and likely Spectrum Mobile) have been unable to accept any Android devices on its plans that were not bought direct...
  • J.B.: Thanks, but I don't have their phone service; can barely stomach having to have them as my ISP, but there are no other REASONABLE options where I live...

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