After North Carolina Law Bans Municipal Broadband, One ISP Gives Gigabit Connections Away

from the shooting-yourself-in-the-foot dept

Back in August, we noted how the FCC lost an incredibly important case regarding municipal broadband. In short, the FCC tried to dismantle state-level protectionist laws, written by incumbent ISPs, that hamstring towns and cities from building their own broadband networks or striking public/private partnerships for broadband -- even in areas those same incumbent ISPs refused to upgrade. The FCC had tried to claim that its congressional mandate to ensure "even and timely" broadband deployment allowed it to strip away any part of these laws that hindered broadband expansion.

But the courts argued that the FCC lacks this authority, forcing the agency to acknowledge it was giving up on this fight. But there are still countless municipal broadband providers in the 19 states that have passed these laws that can't launch or expand existing service lest they run face-first into a law written by Comcast, AT&T, Verizon, or CenturyLink lawyers. And there are millions of customers that are incredibly frustrated by the lack of broadband market competition, resulting in the expensive, inconsistent broadband connections most of us "enjoy" today.

In North Carolina, it took Time Warner Cable four attempts to convince the state legislature to pass such a protectionist law. The FCC's failure to dismantle this law resulted in one municipal ISP, Greenlight, facing the specter of having to disconnect customers in a neighboring county given the ban on selling municipal broadband. In response, the ISP has decided not to sell broadband to these neighbors at all, instead announcing this week that it would be giving away gigabit service for free until it can figure out what to do next:

"Wilson officials voted Thursday to provide free Greenlight Community Broadband services to existing customers outside the county on a limited basis until efforts are successful in overturning the law that prohibits fee-based municipal broadband beyond the county line.

“While the short-term fix is not perfect, it was the only alternative we had to disconnecting our neighbors,” said Wilson Mayor Bruce Rose. “Taking broadband service from the people of Pinetops would have been a terrible blow, especially when they are still recovering from Hurricane Matthew."

And while that's quite a feel good story and a nice move by Greenlight, the reality is there's nobody coming to the rescue of these states any time soon in the wake of the FCC's loss. Incumbent telecom providers have such a stranglehold over state legislatures, they're being allowed to quite literally write the law. In most instances, the states that pass these laws wind up being among the least connected and competitive broadband states in the union. That leaves the only solution being to vote these beholden lawmakers out of office.

The problem is that ISPs have historically been successful in framing this as a partisan issue, one in which the mean ol' government is competing unfairly with the innocent daisies in private industry. This narrative usually involves framing all municipal broadband efforts as unmitigated financial disasters, while trying to claim these laws are necessary to protect poor, naive citizens from themselves. As such efforts in Congress to pass new laws banning state protectionist laws have consistently been scuttled, in part thanks to a public voter base that has been tricked into rooting against its own best self-interest.

The reality however is that this isn't a partisan issue at all. In fact, most municipal broadband networks are being built in Conservative areas with the support of Conservative voters. As these voters grow more and more disenfranchised by the existing duopoly status quo, it's getting harder and harder to convince them that letting AT&T, Verizon and Comcast buy protectionist, anti-competitive state law is perfectly fine, while building local, better broadband networks that dramatically improve local quality of life is the very worst sort of villainy.

Filed Under: broadband, competition, fcc, municipal fiber, north carolina
Companies: greenlight

Town Loses Gigabit Connections After FCC Municipal Broadband Court Loss

from the don't-build-it-and-they-won't-come dept

Back in February the FCC voted to use its Congressional mandate to ensure speedy broadband deployment to dismantle protectionist state laws intentionally designed to hinder broadband competition. But the FCC recently found itself swatted down by the courts, which argued the agency lacks the authority to pre-empt even the worst portions of these laws. As a result municipal broadband providers continue to run face first into protectionist provisions written by incumbent ISP lawyers and lobbyists solely concerned about protecting the current broken broadband market.

The impact of the FCC's loss is very real. Ars Technica notes that one of the broadband ISPs that originally asked for help from the FCC, Wilson North Carolina's Greenlight, has had to disconnect one neighboring town or face violating state law. With state leaders tone deaf to the problem of letting incumbent ISPs write such laws, and the FCC flummoxed in its attempt to help, about 200 home Internet customers in Pinetops will thus lose access to gigabit broadband service as of October 28:

"We must comply with our state law," Agner said. But city council members were very vocal in their opposition to the law and regret having to disconnect the service, she said. "We have not identified a solution where Greenlight can serve customers outside of our county," Wilson City Manager Grant Goings told The Wilson Times earlier this week before the city council vote. "While we are very passionate about reaching underserved areas and we think the laws are atrocious to prevent people from having service, we’re not going to jeopardize our ability to serve Wilson residents."

Greenlight's fiber network provides speeds of 40Mbps to 1Gbps at prices ranging from $40 to $100 a month, service that's unheard of from any of the regional incumbent providers (AT&T, CenturyLink, Time Warner Cable) that lobbied for the protectionist law. Previously, the community of Pinetops only had access to sluggish DSL Service from CenturyLink:

Wilson already had fiber in Pinetops, which has been an electric customer of Wilson's for more than 40 years. Before deploying Internet access to Pinetops, Wilson was laying fiber in the town to support smart grid initiatives. After the FCC voted to let city Internet services expand outside their boundaries, Wilson extended the fiber network to pass the roughly 700 homes in Pinetops, Agner said. Prior to this, Pinetops residents' only option was CenturyLink DSL, she said.

That's the same CenturyLink that's currently using the lack of competition in its markets to begin saddling already slow and expensive DSL service with usage caps and overage fees. ISPs have been very successful in sowing partisan discord by framing municipal broadband as a partisan issue (pesky government interfering in private enterprise!). In reality, most municipal broadband networks have been built in Conservative areas and see broad, bi-partisan support. Disliking the local phone and cable company (and the market failure that built them) is actually something that tends to bring bickering partisans together.

Still, with the FCC's loss there's nothing really stopping ISPs from continuing to use state legislatures as their personal playthings. Currently there's twenty such laws protecting broadband duopolies in place, and despite growing attention to the practice, new protectionist laws are being passed each year.

Filed Under: competition, dsl, fcc, fiber, municipal broadband, north carolina, pinetops, wilson
Companies: centurylink, greenlight