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Mich. Lawmaker Seeks Ban on All Community Broadband Networks (And Blocks Stop the Cap!)

Rep. Michele Hoitenga (R-Manton) doesn’t care much for community broadband, so she introduced a bill in the Michigan legislature that is as stark as it is short:

House Bill 5099:

The bill is remarkable for its brevity — most proposed community broadband ban bills avoid outright bans, preferring to use forced complicated referendums or operational limitations that usually make municipal broadband projects untenable. But Rep. Hoitenga’s bill leaves no doubt she wants private cable and phone companies left unmolested by publicly funded alternatives. Although the Michigan Republican chairs the House’s Communications and Technology committee, she appears confused about the difference between upload and download speeds. Her bill would define a “qualified” internet service as one offering at least 1/10Mbps service. Yes — 1Mbps download speed and 10Mbps upload speed.

Ars Technica’s Jon Brodkin asked Rep. Hoitenga about the oddity of the language in her bill:

When asked about this on Twitter, Hoitenga said she would have to “speak with the attorneys who wrote the bill” to determine whether the listed speed was a mistake. “I will speak with the attorneys who wrote the bill. They changed the language I submitted but will ask why they changed it,” Hoitenga wrote.

Rep. Hoitenga

Rep. Hoitenga used her Twitter account to promote and defend her bill, pointing out the district she represents had “37 providers” to choose from — a fact she gleaned from an online AT&T Yellow Pages directory. Stop the Cap! investigated that claim and found the majority of the providers cited did not offer internet access to members of her district, provided service only in adjacent communities, or sold commercial internet services to businesses only. In fact, for the overwhelming majority of her constituents, there are only two providers to choose from — AT&T or Comcast. Both are top donors to Rep. Hoitenga’s campaign, but more on that later.

Michigan has never been a hotbed of community broadband initiatives, despite having uneven broadband service in suburban and rural areas across the state. Michigan law already includes several significant roadblocks for public broadband projects, notes Lisa Gonzalez from the Institute for Local Self-Reliance:

“Michigan already has a significant state barrier in place; municipalities that wish to improve connectivity must first appeal to the private sector and can only invest in a network if they receive fewer than three qualifying bids. If a local community then goes on to build a publicly owned network, they must comply with the terms of the RFP, even though terms for a private sector vendor may not be ideal for a public entity.

“Nevertheless, several communities in Michigan have dealt with the restrictions in recent years as a way to ameliorate poor connectivity. They’ve come to realize that their local economies and the livelihood of their towns depend on improving Internet access for businesses, institutions, and residents.”

Although Rep. Hoitenga’s bill offers the possibility for “public-private” partnerships, her bill would bring a significant chilling effect because the proposed law fails to define how such partnerships should be structured.

Rep. Hoitenga told Stop the Cap! the bill would put a stop to tax dollars being spent on broadband service, something she felt was unwarranted. We asked the Michigan representative, “Did you know the phone and cable companies receive taxpayer subsidies already in the form of PILOT agreements, and other incentives?” which received the non-sequitur response that her office’s phones were ringing constantly with callers praising her new bill.

But that isn’t what Rep. Hoitenga told her Facebook fans.

“Many individuals have reached out to my office in regards to HB5099; with the belief that I am attempting to limit broadband expansion,” Hoitenga wrote. “This could not be further from the truth. One of my main goals as the Chair of the House Communications and Technology committee is to make internet access more easily obtainable. This legislation does indeed prevent cities from using tax dollars to subsidize ISPs; especially without a vote of the people. While at first glance government operated networks may sound like a good idea, the argument in support of them crumbles with an in depth look into the financial and long-term investment side of implementing such a network.”

So we remain unsure if the wave of phone calls Hoitenga referenced were in support of her proposed bill or opposed to it. Either way, the Michigan representative mischaracterized her own three-paragraph bill by claiming it would prevent cities from using tax dollars for internet service, “without a vote of the people.” But no provision for such a vote exists or would be allowed by her existing bill. Hoitenga’s bill also clearly makes internet access less obtainable, especially in communities where a for profit provider does not exist and a community is seeking to provide an alternative.

Hoitenga later states communities may not need to worry about internet accessibility because, “there is also a package of bills in the senate regarding Small Cell Technology (which also attempts to reduce barriers),” she wrote. That provision is backed by AT&T, which is currently one of the two ISPs serving her district.

She then picks up familiar talking points distributed by public broadband opponents:

“There are examples throughout the state and nation of taxpayers being on the hook for failed networks. There is also concern that some of these networks are in towns where employee pensions are severely underfunded, causing layoffs and cutting services, yet there seems to be money for high risk broadband investments. It’s time to address these issues.

“My colleagues and I have introduced legislation that aims to remove some of the current barriers (HB5096-5098), and help streamline the broadband expansion and installation process for private providers. Municipalities should not be allowed to push out the free markets with unlimited tax payer resources and unfair advantages but could partner with providers to offer fiber for expansion to unserved areas.”

She also cited a 2017 study critical of municipal broadband networks authored by University of Pennsylvania Law School Professor Christopher Yoo and co-author Timothy Pfenninger. Neither author or Rep. Hoitenga disclosed the group that produced the study is funded by AT&T and Comcast, among other large telecom companies and their respective lobbying organizations.

After opening a dialogue with the Michigan representative, she did not take kindly to questions or criticism about her bill, and summarily blocked Stop the Cap! from seeing her Tweets or communicating with her further — the first time anyone has blocked our group on Twitter. Shortly after that, she changed her Twitter channel to be viewable by invitation only, limiting her potential audience to her 284 current followers. At the moment, the only social media outlet that seems to be still open to communicating with Rep. Hoitenga is Facebook, where she is taking heat from her constituents about her bill.

The Michigan representative has been behind several controversial bills introduced in the current session of the Michigan House, including a proposal to allow concealed pistols to be carried in public and a ban on Sharia law being practiced in the United States.

Her top donors for the current legislative session include:

#2 – Telecommunications Association of Michigan PAC, $3,000
#4 – AT&T Michigan, $1,500
#11 – Comcast Corp. & NBC Universal, $500

FCC Chairman Confirms Agency Cannot Revoke Licenses Over News Coverage

Phillip Dampier October 19, 2017 Public Policy & Gov't Comments Off on FCC Chairman Confirms Agency Cannot Revoke Licenses Over News Coverage

Pai

WASHINGTON (Reuters) – The U.S. Federal Communications Commission’s chairman said Tuesday the agency does not have authority to revoke broadcast licenses, despite suggestions from President Donald Trump.

Ajit Pai, a Republican who was named chairman of the telecommunications regulator in January, broke days of silence by rejecting Trump’s tweet that the FCC could challenge the license of NBC after stories Trump declared were not true.

“Under the law, the FCC does not have the authority to revoke a license of a broadcast station based on the content,” Pai said at a forum. “The FCC under my leadership will stand for the First Amendment.”

The First Amendment of the U.S. Constitution guarantees freedom of speech and freedom of the press.

Democrats had been pushing Pai to denounce Trump’s suggestion that broadcast licenses could be threatened following reports by NBC News that his secretary of state, Rex Tillerson, had called him a “moron” after a discussion of the U.S. nuclear arsenal.

“With all of the Fake News coming out of NBC and the Networks, at what point is it appropriate to challenge their License? Bad for country!” Trump tweeted last Wednesday.

Trump and his supporters have repeatedly used the term “fake news” to cast doubt on media reports critical of his administration, often without providing any evidence to support their case that the reports were untrue.

Any move to challenge media companies’ licenses, however, would likely face significant hurdles.

The FCC, an independent federal agency, does not license broadcast networks, but issues them to individual broadcast stations that are renewed on a staggered basis for eight-year periods.

Comcast Corp, which owns NBC Universal, also owns 11 broadcast stations, including outlets in New York, Washington, Los Angeles, San Francisco, Boston, Dallas and Chicago.

When reviewing licenses the FCC must determine if a renewal is in the public interest. Courts have held that a station exercising its First Amendment rights is not adequate grounds to challenge a license.

The agency does not issue similar licenses for cable networks such as CNN and MSNBC, or regulate internet news or other websites.

In the early 1970s, then-President Richard Nixon and his top aides discussed using the FCC’s license renewal process as a way of punishing The Washington Post for its coverage of the Watergate burglary that ultimately brought down his presidency.

Reporting by David Shepardson; Editing by Jonathan Oatis

A Month After Maria Hammered Puerto Rico, Most Utilities Still Down

Phillip Dampier October 17, 2017 Claro Puerto Rico, Consumer News, Liberty/UPC, Public Policy & Gov't, Wireless Broadband Comments Off on A Month After Maria Hammered Puerto Rico, Most Utilities Still Down

As Puerto Rico approaches the first month anniversary of Hurricane Maria, only small amounts of incremental progress have been made restoring the island’s telecommunications networks badly damaged by the storm.

Wireless Service

According to the Federal Communications Commission, 75.3% of Puerto Rico’s cell towers are still out of commission and many of those restored to service are functioning on generator backup, often using portable cell tower infrastructure that offers a fraction of the coverage area normal service used to provide. The majority of restored towers are in the immediate vicinity of San Juan, while many other parts of the island remain totally without service. Claro, a Mexican-owned cell company that used to offer the best coverage across Puerto Rico still remains the most reliable after the storm. All four wireless companies operating in Puerto Rico are offering free roaming to customers so as towers are restored to service, the companies can provide coverage to as many residents as possible.

Satellite Cells on Light Trucks (COLTs) have been deployed in Aguadilla, Arecibo, Cayey, Caomo Sur, Fajardo, Guayama, Manati, Mayaguez Mesa, San German, Vega Baja, and Yauco and Terrestrial Cells on Wheels (COWs)/COLTs in Humacao, Quebradillas, Rio Grande, and Utuado.

The FCC believes approximately 61% — one percent higher than last week — of the population can now get some cell signal. But that figure is slightly misleading because the largest percentage of the population lives around or in San Juan, the city with the best service restoration so far.

In contrast, most cell sites in Texas, Louisiana, Mississippi, Alabama, Georgia, and the Florida Panhandle affected by two earlier hurricanes were restored to service within two weeks. Cellular providers point out the reason for the difference is the availability of commercial power and reliable backup generators, both not widely available in Puerto Rico even now.

The U.S. Virgin Islands, also devastated by Hurricane Marie, are also struggling with repair efforts. At least 55.4% of cell towers are out of service on those Caribbean islands, with 88.9% still down on St. John, the smallest of the three islands that make up the U.S. territory. Because repair efforts have been more effective on the other two islands, about 88% of the territory can now get a cell signal.

Electricity

NBC News reported today that 17.7% of Puerto Rico now has electricity, but it is very unreliable and there are daily outages that sometimes extend for hours. The Army Corps of Engineers hopes to have in place by next week — more than a month after Hurricane Maria made landfall in Puerto Rico — two 25-megawatt generators at a plant in San Juan to help stabilize electricity there. The generators arrived Oct. 13, and a target date of Oct. 25 may be missed because of ongoing inclement weather. Once installed, the generators will extend electricity to about 30% of the island — mostly in the northeastern section around San Juan — and stabilize power for those who already have it.

The government is prioritizing electricity restoration for public safety and hospitals, public/government institutions including sewage and water treatment plants, schools, and then the island’s large pharmaceutical industry, which own several large drug manufacturing plants.

The order of priority the government is giving to service restoration is upsetting Claro, one of the island’s largest cell companies.

“Businesses and the government itself can hardly operate efficiently without an appropriate telecommunications structure,” said Claro representative Pedro Andrés. “For example, without telecommunication services the bank could not operate and that means that there would be no access to money for people, businesses could not handle electronic transactions, medical plans would not work and suppliers could not dispatch. That is, the country would be paralyzed.”

Andrés wants the power authority to make sure that electric service is restored to cell towers as soon as practical.

Residents are being told they can expect 95% electricity service restoration by Dec. 15.

Cable and Telephone

Liberty Cablevision of Puerto Rico is only working for about 1% of its customers, so it is focusing on offering free Wi-Fi hotspots for now.

Diesel generators are currently powering some of the island’s 911 service centers, which are now back up and running normally.

Cable service remains basically non-existent in Puerto Rico because of the lack of electricity. Liberty Cablevision of Puerto Rico has reported it has restored full service to about 1% of its customers, although a significantly higher number will have service back immediately after electricity is restored. Liberty promises automatic service credits for the duration of the outage and has told customers to ignore billing that was already in the mail when the storm hit. Liberty is currently focused on reaching and retaining the goodwill of its customers with a network of free Wi-Fi hotspots.

The island’s landline provider reports there are six central switching offices out of service on the island and there are problems connecting long distance calls.

Broadcast Media

The following TV stations are confirmed operational: WKAQ, WIPR, WIPN, WTIN, and WNJX, but these nine are still off the air: WAPA, WIPM, WTCV, WUJA, WELU, WECN, WRSV, WORO, and WRUA.

As of today, 44 AM radio stations are confirmed to be on-the-air: WA2XPA, WALO, WAPA, WBMJ, WBQN, WCMN, WCPR, WDEP, WENA, WEXS, WGDL, WI2XAC, WI2XSO, WI3XSO, WIAC, WIDA, WIPR, WISO, WJIT, WKAQ, WKFE, WKJB, WKUM, WKVM, WLEO, WLEY, WMDD, WMNT, WNEL, WNIK, WOIZ, WOLA, WPAB, WPPC, WPRA, WPRP, WQII, WSKN, WSOL, WTIL, WUKQ, WUNO, WVJP, and WXEW.

These 29 AM radio stations are confirmed out of service: WABA, WBSG, WBYM, WCGB, WCMA, WDNO, WEGA, WFAB, WGIT, WHOY, WIBS, WISA, WIVV, WLRP, WMIA, WMSW, WNVI, WOQI, WORA, WOSO, WQBS, WRRE, WRSJ, WRSS, WUPR, WVOZ, WYAC, WYEL, and WYKO.

There are 36 FM radio stations back on the air: WAEL-FM, WCMN-FM, WEGM, WERR, WFID, WIDA-FM, WIDI, WIOA, WIOA-FM1, WKAQ-FM, WLUZ, WMAA-LP, WMEG, WNVM, WODA, WORO, WOYE, WPRM-FM, WPUC-FM, WPUC-FM1, WQML, WRIO, WRRH, WRTU, WRXD. WTOK-FM, WUKQ-FM, WVDJ-LP. WVIS, WVJP-FM, WXLX, WXYX, WYQE, WZNT, WZNT-FM1, and WZOL.

But these 22 FM radio stations are still out of service: W227CV, WCAD, WCAD-FM2, WCRP, WELX, WFDT, WIOC, WIPR-FM, WJDZ, WMIO, WNRT, WNVE, WQBS-FM, WTPM, WVQR, WXHD, WYAS, WZAR, WZCA, WZET, WZMT, and WZOL-FM3.

FCC Readies $1 Billion for 1,000 TV Station Channel Changes

Phillip Dampier October 17, 2017 Consumer News, Public Policy & Gov't, T-Mobile, Video 1 Comment

The FCC is preparing to pay about 1,000 TV stations and cable operators $1 billion dollars to subsidize necessary expenses to change over-the-air channels to make room for cell phone companies.

The channel changes are a result of a now-complete spectrum auction that will reallocate part of the UHF TV dial for use by cell phone companies for wireless broadband. Part of the auction proceeds will be used to reimburse TV stations and cable operators for the expenses associated with changing channel positions and equipment needed to receive those signals.

The move will significantly compress the UHF TV dial, requiring viewers to rescan their local channel lineups in what the industry is calling a “repack” of stations to closer dial positions. When complete, the UHF TV band will shrink from channels 14-51 to 14-36. Channels 38-51 are being reallocated to the wireless industry (channel 37 remains reserved for radio astronomy use only).

Some stations will need to buy a new antenna or transmitter, others may require interim or larger facilities to manage the change. The National Association of Broadcasters complains the FCC is not allocating enough money to cover what it estimates will eventually cost TV station owners $2.139 billion. TV tower rigging crews, who climb antenna towers and perform installation and maintenance services, are booked well in advance and are charging prices consistent with the urgent need to prepare for the biggest TV transition since the switch to digital broadcasting.

Because nobody is certain exactly how much the free TV repack and transition will eventually cost, the FCC intends to partly reimburse commercial stations about 52% of their costs (62% for non-commercial stations) during the first round of funding. Another $750 million is expected to be allocated for the second round of funding to cover the rest.

The agency also intends to scrutinize receipts to make certain stations are not dipping into the fund to help pay for the forthcoming transition to ATSC 3.0 broadcasting, which will eventually make current TV sets and some station equipment functionally obsolete. TV stations can only recoup expenses directly related to the repack. The FCC suspects as repack deadlines near, TV tower rigging crews could raise prices further and take a bigger percentage of the fund than station owners may realize. If costs rise out of proportion to what is now deemed reasonable, some stations may face out-of-pocket expenses the FCC will not reimburse if the fund is exhausted.

The FCC did not account for cell companies stepping in and directly assisting TV stations to vacate their existing channel positions faster than the FCC initially planned. T-Mobile, which won a large number of licenses that cannot be used until certain TV stations make channel changes, is reaching agreements with stations directly, offering incentives to move faster. In New York City, an agreement between FOX and T-Mobile will save the FCC fund almost $80 million. FOX-owned stations WWOR and WNYW will move their transmitters from the Empire State Building to One World Trade Center, allowing them to switch channel positions and make room for T-Mobile more than a year ahead of schedule.

When the repack is complete, viewers watching over-the-air will need to rescan their televisions to find their local stations once again.

A Public Service Announcement from the FCC explains the “rescanning” process to keep or receive new digital over-the-air stations. (1 minute)

Charter Sues Striking Union Over Alleged Acts of Sabotage; Lobbyist Earns from Both Sides

Phillip Dampier October 16, 2017 Charter Spectrum, Public Policy & Gov't 3 Comments

Members of IBEW Local 3 have been on strike for about seven months. (Image: IBEW Local 3)

Charter Communications is suing the International Brotherhood of Electrical Workers Local 3 alleging its striking members are responsible for repeated acts of vandalism and sabotage of Charter’s cable service Spectrum in the New York City area.

The lawsuit, filed last week in Manhattan Supreme Court, claims union members have cut or damaged cables and other property at least 125 times since the union went out on strike in March.

“The sabotage was done purely out of maliciousness,” Charter’s attorneys allege in the lawsuit. “The saboteurs clearly knew the optimal locations where they could quickly cut cable lines to multiple customers without being harmed or observed, suggesting they are cable technicians who work for Charter.”

A Charter spokesman said the company filed the suit to get union members to stop damaging its equipment.

Union members suggest Charter brings no hard evidence to the table about who is responsible. Union officials have repeatedly denied involvement and have urged those responsible to stop, noting it risks turning Spectrum customers against the union.

Meanwhile, a powerful New York City lobbying firm appears to be getting rich representing Charter Communications while also representing three of the cable company’s biggest critics in City Hall, including New York City Mayor Bill deBlasio.

The Daily News reports the MirRam Group represents the mayor, City Council Speaker Melissa Mark-Viverito and Public Advocate Letitia James. James has been a client since 2013 while Mayor deBlasio hired the company in April to assist him with his re-election campaign. The lobbying firm has collected $150,000 from Charter and its predecessor Time Warner Cable in the last 12 months.

The newspaper reports the terms of the contract require MirRam Group to promote Charter’s business with ‘key public officials’ in city and state government, including monitoring legislative developments that could impact on the cable company in New York. The lobbying firm is also required to “promote Charter’s public policy interests” and is not supposed to “represent other clients on matters adverse to or in conflict with” the cable company’s goals.

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