A coalition of high tech companies including Google and Alcatel-Lucent are warning South Carolina legislators they are playing with future high tech jobs and will stifle the state’s digital economy if they grant the request of large phone and cable companies to make it difficult, if not impossible for community-owned broadband to compete.  Alcatel-Lucent, American Public Power Association, Atlantic Engineering, Fiber to the Home Council, Google, OnTrac, Southeast Association of Telecommunications Officers and Advisors, Telecommunications Industry Association, and the Utilities Telecom Council all co-signed the letter addressed to the state’s Senate Judiciary Committee:

Dear Senator McConnell and Members of the Senate Judiciary Committee:

We, the private-sector companies and trade associations listed below, urge you to oppose H.3508 because these bills, on top of South Carolina’s existing barrier to public communications initiatives, codified in SC Code §§ 58-9-2600 et seq., will harm both the public and private sectors, stifle economic growth, prevent the creation or retention of thousands of jobs, hamper work force development and diminish the quality of life in South Carolina. In particular, these bills will hurt the private sector in several ways: by curtailing public-private partnerships, stifling private companies that sell equipment and services to public broadband providers, and impairing educational and occupational opportunities that contribute to a skilled workforce from which businesses across the state will benefit.

Clearwire's coverage map shows no service in South Carolina.

The United States continues to suffer through difficult economic times.  The private sector alone cannot lift the United States out of this crisis.  As a result, federal and state efforts are taking place across the Nation to deploy both private and public broadband infrastructure to stimulate and support economic development and jobs, especially in economically distressed areas.  For example, in South Carolina, Orangeburg and Oconee Counties have received broadband stimulus awards to bring much-needed broadband services and capabilities to communities that the private sector has chosen not to serve adequately.  H.3508, together with SC Code §§ 58-9-2600 et seq., would impose burdensome financial and regulatory requirements that will prevent public broadband providers from building the sorely needed advanced broadband infrastructure that will stimulate local businesses development, foster work force retraining, and boost employment in these economically depressed areas.

Consistent with these expressions of national unity, public entities across America, including South Carolina, are ready, willing, and able to do their share to bring affordable high-capacity broadband connectivity to all Americans. Enactment or retention of direct or effective barriers to community broadband, such as H.3508 and SC Code §§ 58-9-2600 et seq., would be counterproductive to the achievement of these goals.  These measures are also inconsistent with our country’s National Broadband Plan, which recommends that no new barriers be enacted and that existing barriers be removed.

We support strong, fair and open competition to ensure that users can enjoy the widest range of choices and opportunities.  H.3508 is a step in the wrong direction.  South Carolina should be removing barriers to public broadband initiatives rather than establishing new ones, so that high technology companies can spread and prosper into all the communities in this beautiful state.  Please oppose H.3508, repeal SC Code § 58‑9‑2600 et seq., and reject any future measures that could significantly impair municipal broadband deployments or public-private partnerships in South Carolina.

Stop the Cap! earlier noted this legislation is heavily sponsored by AT&T and other telecommunications companies already operating in South Carolina.  Several months ago, we reported on South Carolina’s woeful broadband: A Corridor of Shame, with large sections of the state without anything close to “broadband” service, even as state legislators in 2009 leased away the state’s publicly owned Educational Broadband Service-spectrum to private companies like Clearwire that don’t appear to be delivering any service in South Carolina.

A group whose national umbrella organization has close connections to the nation’s largest phone companies estimates 5.3% of residents in the state of Tennessee now have access to world-class fiber broadband at speeds up to 1Gbps, but no thanks to AT&T or Comcast.

As part of updated broadband availability estimates, the group noted that only a fraction of the state gets access to the community-0wned Chattanooga-based utility that provides fiber to the home service, EPB.

Key findings from this update include:

• 95.2% of Tennessee households have access to fixed broadband service of at least 768 Kbps downstream and 200 Kbps upstream (excluding mobile and satellite services).
• 93% of Tennessee households have access to fixed broadband service of at least 3 Mbps downstream and 768 Kbps upstream (excluding mobile and satellite services).
• 4.8% of Tennessee households remain unserved by any fixed broadband provider, representing approximately 120,000 unserved households that do not have access to a fixed wireless or wired broadband service offering (excluding mobile and satellite services).
• Across rural areas of Tennessee, the percentage of unserved households by any fixed broadband service is 8.4%, representing approximately 110,000 unserved rural Tennessee households.
• 5.3% of Tennessee households now have access to broadband service of at least 1 Gbps, marking the first time in Tennessee.

Most households receiving the slowest speeds get them from phone-company marketed DSL service and some fixed wireless ISPs operating in the state.

In Chattanooga, consumers have a choice between AT&T U-verse in selected neighborhoods, Comcast Cable, or EPB Fiber.  Recently, Christopher Mitchell at Community Broadband Networks alerted us that The Chattanoogan newspaper shared the difference between Comcast and EPB customer service:

You’ve got to be kidding me, Comcast! Several days ago our On Demand stopped working with a message to contact customer service and report that error seven occurred.

My husband called and after being given the self-help/troubleshoot option over the phone selected and requested a signal to be re-sent to the box. The box had already been unplugged, the appropriate amount of time waited, and the box plugged back in. No luck. The box was sent the refresh signal…it didn’t work; surprise.

So, he called back and spoke with someone who wanted to re-send the signal again and if that didn’t work then a technician would be needed.

[…]

I called Comcast this morning to schedule the technician to be told that it was going to cost me $30 for them to come out regardless of the problem. Let’s see, Comcast’s DVR box that they own and I rent shot trouble and I have to pay them another $30; I asked at least twice – “if Comcast’s equipment is the problem, I still have to pay $30?” “Yes, mam”.

They should bring out a replacement DVR for me, adjust my account for the days we’ve been without the On Demand plus an amount plus or minus $30 for the time we’ve had to take to mess around with this; not counting the time that will have to be arranged to be taken to have their technician come out.

Since I’m going to have to arrange to take more time, maybe we’ll just have someone else come out and put in something other than Comcast and they can have their broken DVR and all their other stupid little additional cable boxes returned to them.

Melanie Henderson
Hixson

EPB provides municipal power, broadband, television, and telephone service for residents in Chattanooga, Tennessee

The community-owned broadband alternative, EPB Fiber

We experienced the same “customer service” issues with Comcast. We finally cancelled our service when the tornado came through our neighborhood and we were forced to move for six months. When we finally moved back home we became EPB customers.

We have had one instance where we needed to contact customer service, and the problem was fixed quickly and easily by the most polite customer service rep I’ve ever dealt with.

Comcast came by recently to offer us a “substantial savings” if we’d make the switch back to them. My question was, why now? I was a customer for years and treated poorly as rates increased exponentially. Now the offer the discount? No thanks.

For the $5 extra per month that we pay for EPB, we receive better features, prompt and polite customer service, and an all around trouble free experience. Thanks EPB!

Leah Crisp
Harrison

Heartland Institute: "By not disclosing our donors, we keep the focus on the issue."

In an eyebrow-raising exchange between the Heartland Institute’s Bruce Edward Walker and Dr. Joseph P. Fuhr, Jr., who produced a dollar-a-holler “research report” on behalf of corporate-backed astroturf group the Coalition for the New Economy (which lists the Heartland Institute’s Florida chapter as a member), the two dismiss Chattanooga’s award-winning EPB Fiber Network as providing lesser service than private competitors AT&T (also a member of the Coalition) and Comcast, in part because EPB “only sells customers a gig.”

An exchange between Heartland Institute’s Bruce Edward Walker and Dr. Joseph P. Fuhr, Jr. fundamentally misrepresents Chattanooga’s EPB Fiber network. At no point does Walker disclose Heartland Institute’s chapter in Florida is a member of the group that sponsored the production of Fuhr’s report. (1 minute)
You must remain on this page to hear the clip, or you can download the clip and listen later.

Walker: The government broadband services are always one step behind private industry and I’m thinking in Chattanooga, the law [sic] that they have the fastest download speeds of all government broadband in the United States, but they only offer 1Gbps service.

Fuhr: Well, one of the issues there is, well, the supply is there but they kind of have the feeling that if you build it, they will come.  Well, they haven’t come.  I mean they are charging $350 a month for that service and very few people are willing to subscribe.  People are, for the most part, happy with slower speeds.  Who really needs a gigabyte (sic) and the market shows that people don’t really need that.

Dr. Fuhr apparently does not know the difference between a “gigabyte” and a “gigabit,” so I am not sure how seriously we are supposed to take this “broadband expert.”  He also does nothing to challenge Walker’s wholly-inaccurate declaration that EPB only sells customers $350 1Gbps broadband.

In fact, most of Heartland Institute’s views about EPB broadband are a big bucket of wrong:

1. EPB Fiber offers the fastest fiber broadband in the United States.  It is “private industry” providers Comcast and AT&T who are more than one step behind, and they refuse to sell faster service and upgrade their networks to the speeds seen in Asia and Europe that Chattanooga’s EPB customers can have today.
2. There is no “law” involved in the delivery of broadband by EPB.  In fact, EPB fought off attempts by incumbent operators to sue the municipally-owned provider out of the broadband business, and some of those same companies are backing the “Coalition for the New Economy” in their efforts to curtail community broadband with new laws that would make networks like EPB next to impossible to provide.
3. EPB does not only offer 1Gbps service.  Consumers and businesses are free to choose between several different speed tiers.  As any commercial entity will tell, you 1Gbps at just $350 a month is a steal compared to the prices AT&T and Comcast would charge.
4. When EPB built their fiber network, private businesses did come.  In addition to media reports documenting expansion in Chattanooga from one Knoxville business, Amazon.com has announced hundreds of millions of dollars in new investments building and expanding distribution centers in and around Chattanooga, in part because EPB Fiber was available for their use.
5. People are not happy with the slow speeds some providers force them to accept.  It is no surprise, however, that industry-funded astroturf groups would repeat the usual provider line that people “don’t need” fast broadband that they have no plans to deliver anyway.

Plenty of taxpayer-backed money for this... (Time Warner Cable Arena - Charlotte, N.C.)

Which is more important:

1. Spending hundreds of millions of taxpayer dollars to finance sports facilities, stadiums, and “incentive packages” to attract and keep major sports franchises calling your city home;
2. Building quality digital infrastructure that will deliver 21st century broadband service at affordable prices for every local citizen that wants the service.

Here in western New York, the city of Buffalo — the third poorest city in the nation with 28 percent of its residents living in poverty and suffering chronically high unemployment — is about to the recipient of a one billion dollar bailout courtesy of the state government (a/k/a taxpayers).  That, even as some in the city are howling that the promised tens-to-hundreds of millions in promised renovation funding for the Ralph Wilson (Buffalo Bills) Stadium is apparently not included.

While hundreds of millions of taxpayer dollars are readily available to finance sports stadiums, getting privately financed bonds for public broadband is somehow the real crime in states like North and South Carolina.  North Carolina already has legislation in place that virtually assures broadband service is under the control of the state’s largest phone and cable companies, or it simply is not provided at all. Evidently in a battle over worthwhile public spending, financing a reported $260 million for Charlotte, N.C.’s Time Warner Cable Arena remains a higher priority than making sure the people of North Carolina have decent broadband service.

South Carolina this week is considering extending a similar courtesy to companies like AT&T and Time Warner Cable.  They need better broadband even more than their neighbors to the north.

Happily, broadband advocate Craig Settles has found a way for broadband lovers to have their cake and eat it too.

...but none for this?

Why not construct public, non-profit broadband networks by selling ownership shares to the general public?

All of you who believe in broadband’s impact on economic development (or are a little jealous of stories like this about Chattanooga’s 1 gigabit network), should look to the Green Bay Packers of the NFL for the key to financing your broadband network.

Yeah, they kind of choked in last Sunday’s playoff game against the N.Y. Giants. But the team is a surefire winner when it comes to raising money. The franchise raised $70 million to rehab its football stadium (Lambeau Field) by selling 280,000 stock shares to individuals at $250 a pop. They pulled off this amazing feat in just five weeks!

With apologies to New Orleans Saints fans — “Who Dat” is bringing big bucks into town for a project that will pump up the local economy? The citizens of Green Bay. Literally. The Green Bay Packers are a nonprofit corporation owned by local residents and businesses. Packers pride enabled Green Bay to outdo tech companies that can’t get an initial public offering off the ground, let alone raise $70 million.

If Green Bay can do all this for a football field, can’t your hometown or county convince constituents to raise just a few million for a broadband network?

$250?  That’s the combined price of today’s cable and cell phone service over just a single month.  Should a private non-profit group act as coordinator for the project, they can walk right past existing restrictions on municipal broadband enacted at the behest of big cable and phone companies.  Self-financed fiber to the home service could pay dividends… to customers instead of Wall Street.

Settles lays out the parameters and the challenges, namely fighting that old meme that only giant telecom duopolies know how to run a broadband business.  But as we’ve seen from small scrappy private providers like Sonic.net in California and publicly-owned EPB Fiber, providing superior service at a reasonable price will bring customers to your door.  Even more so if they also happen to own the door.

A western Indiana fiber-to-the-home project first envisioned more than five years ago is finally moving forward as it wins unanimous approval at the Tippecanoe County Redevelopment Commission.

Lafayette and West Lafayette, Ind., home to prestigious Purdue University, has a broadband problem.  Broadband advocates claim current providers Comcast and Frontier Communications underserve Tippecanoe County.  The former has put western Indiana on the “long list” waiting for service upgrades, and Frontier Communications offers little more than slow speed DSL in the region.  While Purdue arranges for its own Internet connectivity, off-campus students and area residents have had to make due with what the local cable and phone company offers, which isn’t much according to the locals.

“Comcast service has recently improved, but there is a big difference between Comcast service in a city like Chicago and what they deliver this part of Indiana,” shares Stop the Cap! reader Nick Jefferson, who tipped us to the recent developments.  “Frontier is a complete waste of time, and they have alienated customers across Indiana after taking over from Verizon Communications.”

In 2005, Tippecanoe County officials met with Verizon to encourage construction of its FiOS fiber-to-the-home network in western Indiana, as it had planned for the eastern Indiana city of Fort Wayne.  But Verizon sold off its Indiana landline operations to Frontier Communications, which has since shown little interest in expanding the fiber to the home network it inherited.  Now the county is considering financing a fiber network itself, to be ultimately run and administered by Cinergy MetroNet, which already provides service in the Indiana communities of Connersville, Greencastle, Huntington, Madison, New Castle, North Manchester, North Vernon, Seymour, Vincennes, and Wabash.

[flv width=”480″ height=”290″]http://www.phillipdampier.com/video/WLFI Lafayette Ultra-high-speed net may be headed here 3-21-11.flv[/flv]

WLFI-TV explained the basics of the new fiber-to-the-home network and how it will be paid for in this report from March, 2011.  (2 minutes)

The $40-50 million project would not come out of taxpayer funds directly.  Instead, a novel financing approach would cover construction costs over a 15-20 year period using a combination of MetroNet investor funds and a “tax increment financing” district, which would provide a temporary tax abatement during the period the network is being paid off.  Taxpayer dollars would not be exposed — the financial risks would be to MetroNet and its investors alone.

A fiber to the home service would provide a network capable of gigabit broadband speeds, but historically Cinergy has offered lower speeds to their other Indiana customers, albeit at highly competitive pricing, along with packages of video and phone service.

Larry Oates, head of the West Lafayette redevelopment commission for the project, says the fiber network delivers more than just the promise of better broadband service

“This project could be a great economic development tool,” Oates told The Exponent. “It is up to the businesses and residents who live here to decide what to do with it. We are just facilitating their potential.”

The County Commissioners will decide later whether to give the project a final approval.

[flv width=”480″ height=”290″]http://www.phillipdampier.com/video/WLFI Lafayette Tippecanoe County moves forward with plans for Fiber to Home 1-9-12.mp4[/flv]

WLFI in Lafayette reports Tippecanoe’s fiber to the home network has gotten unanimous approval from the country redevelopment commission.  (2 minutes)