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SEATOA MONTHLY UPDATE

May 2011

President’s Update
SEATOA’s 2011 Annual Conference proved to be a great success - with keynote speaker FCC Commissioner Michael J. Copps and officials from state offices of the USDA – Rural Utilities Service included in various informational workshops. A brief summary of the Conference is available on this link to the 2011 Conference Page.

On the legislative front, despite SEATOA’s continued attempts to secure North Carolina Governor Beverly Perdue’s veto of H129 – the Time Warner Cable/Centurylink legislation which made rapid movement through the State’s legislature in May – the bill became law without the Governor’s signature. The onerous regulations of this anti-municipal broadband bill will effectively curtail any efforts of NC local governments who would like to provide – or who are in the process of developing or operating – community networks, especially in areas not served by the private sector.

In announcing that she would not sign, but not veto H129, the Governor provided the following written statement:


“I believe that every school, household and business in North Carolina – no matter where they are – should have access to efficient and affordable broadband services.
There is a need to establish rules to prevent cities and towns from having an unfair advantage over providers in the private sector. My concern with House Bill 129 is that the restrictions the General Assembly has imposed on cities and towns who want to offer broadband services may have the effect of decreasing the number of choices available to their citizens.
For these reasons, I will neither sign nor veto this bill. Instead, I call on the General Assembly to revisit this issue and adopt rules that not only promote fairness but also allow for the greatest number of high quality and affordable broadband options for consumer.

In various media interviews that day, Gov. Perdue stressed she did not like the bill: "I’m very unhappy with the concept” and she hoped the statement “…will force, pressure, coerce, encourage the private sector to do what they need to do in these rural areas. If the private sector’s not gonna do it, then we need to look at the law again." To that she added, “You can’t compete with government. That’s what the Umstead Act is about… But I happen to be from a part of the state that has a real need for higher-speed broadband access. I don’t believe you can expect businesses to grow in either the mountainous areas or the very rural northeast without having technology.”

Of course, the Governor’s advisors should have informed her that another provision of state law exempts local governments from the Umstead Act, making the Act only applicable to state government activities. It’s also tough to accept that multi-billion dollar companies like Time Warner Cable and Centurylink need to be protected from small towns that have lost their tobacco economies, like Wilson or Salisbury.

SEATOA’s veto request to the Governor included the FCC data revealing that those same companies have served North Carolina right into last place in the country in terms of the minimum broadband levels the FCC recognizes are needed for modern day internet use. That same private sector has already made it clear that it has no intention to serve our low density, low income rural areas. Voices from a number of the residents of these communities were heard in the House and Senate committee meetings. And as the private sector decides who can and can’t afford broadband, local communities now effectively can’t step in – it’s like saying communities should not provide water because the private sector provides bottled water.

SEATOA plans to take Governor Perdue at her word. We will closely monitor the activities of our incumbent operators in providing true high speed broadband in NC – particularly in our rural communities. While we are hopeful that the Governor’s comments will spur operators to expand their networks – we are very cognizant of the business factors which affect their rates of return and have thus far hampered such expansion. Deregulated market like North Carolina’s – where the incumbents maintain monopoly control – also provide them wonderful opportunities not to upgrade or expand their infrastructure, but to raise rates and suck the cash out of outdated infrastructure to generate rich profits. Then these same companies use these revenues to upgrade the infrastructure in higher density, high income states (like Hawaii where we see Time Warner Cable building fiber to the home). NC consumers have no choice but to pay higher rates for less broadband. If their use overwhelms existing available bandwidth, the industry will just pare it back by charging even higher rates through metering, which has already been tested in Greensboro.

We invite our members and friends to input information relating to these activities in their communities to SEATOA’s database – to assist us in this monitoring. Please input this information directly to seatoa@carolina.rr.com

SEATOA monitored legislation in Georgia, South Carolina and Tennessee. None of these other states succeeded in passing bad broadband or PEG legislation this session.

  • The GA Legislature adjourned for 2011 without passing HB385 – a bill that could have eliminated PEG channels in the state. However, this bill could be revisited in the special session in August for reapportionment – if the Governor includes it in the call for the session.
  • South Carolina’s AT&T-sponsored anti-municipal broadband bill in died in committee. Among other things, AT&T wanted broadband defined as 190 Kbps.

SEATOA is ready to assist when potential changes signal affects on telecommunications activities for local governments and consumers. So input – to seatoa@carolina.rr.com – is welcomed to keep the Executive Team apprised of developments in your legislative arena.


November 2010

SEATOA closely monitored the recent elections which brought major modifications in both federal and state representation in our member states of Georgia, North Carolina, South Carolina and Tennessee.
In Tennessee, both the State Legislature and the Governor’s Office went to the Republicans – since Reconstruction both were previously held by the Democrats – and the Grand Old Party also secured a majority in the state’s Congressional delegation for the first time since 2002.  In North Carolina – for the first time since 1898 – control of the State Legislature shifted to the Republicans, although without a veto-proof majority.  South Carolina – following national trends saw Republicans making key gains in statewide and local races.  And in Georgia – even after the election – Republican representation continues to grow as Democratic members of the Statehouse switch and/or discuss switching parties.

SEATOA asks our members to analyze how they feel these changes will affect the telecommunications, municipal broadband, IT and PEG operations in their state and provide this input to the SEATOA Executive Team.  This will enable the Executive Team to focus in on the key issues which will need to be addressed in the individual states during the next few years.  Just send your input to seatoa@carolina.rr.com

Based on past voting patterns, this “sea change” portends a legislative year where large incumbent operators in our SEATOA states will garner easy access to top leadership.  In the past, this has often resulted in quick passage of legislation designed to block community-owned broadband systems – despite the lack of broadband access in our SEATOA states.  It is therefore incumbent upon SEATOA to get the word out.  We encourage our member communities and their residents to communicate directly with their elected officials to emphasize that broadband access is essential for their students to compete and for their local businesses to prosper.

SEATOA 10th Annual Conference – “Growing & Sharing Community Networks” – Preliminary Conference Schedule is now available on our Conference page.

 

October 2010

SEATOA’s Executive Team is gearing up for the new legislative year.  In NC in the last month, a subcommittee of Rep. Faison's (D. - Orange, Caswell) Rural Broadband Committee met, as did the full Committee.  The issue under evaluation was authorizing Counties to provide broadband service to their communities.  Rep. Faison's subcommittee has been tasked with more carefully evaluating the issues surrounding this topic. The full committee will meet again November 23rd at 10:00 a.m. in Room 544 of the NC House.  As expected, the NC Cable Association is against NC counties providing broadband to their citizens unless it is according to "rules" the industry designs.  These "rules" have been offered over the last three years by the industry, and in essence, create huge impediments to any city, county or town successfully deploying service.  It is anticipated that the cable industry will use this committee’s discussion to – once again – attempt to introduce legislation that will terminate local governments' ability to provide broadband to their citizens.  AT&T was described as showing a more evolved stance on the issue, new support for the idea that any entity should have the right and opportunity to compete in provisioning broadband service.

In contrast, numerous counties in NC have now articulated that they believe deploying broadband infrastructure in their communities is essential to their future economic survival – so their citizens, students and businesses can compete in a global economy. 

 

September 2010

SEATOA’s 10th Annual Conference – “Growing & Sharing Community Networks” – will be held at the Hilton Asheville Biltmore Park in Asheville, NC next May 8th thru 10th. Planning has begun for our broadband and PEG workshops, with the following focus areas in mind:

  • Financing & Developing Community BB Networks
  • BB Stimulus Grants Updates and Success Stories
  • Public Safety Network Grants Status Updates
  • Community & Public Safety Wired and Wireless Broadband Networks
  • Community Network and P-E-G Tech Showcases
  • State & Federal Policy/Legislative Impacts on Community BB and Public Safety Networks
  • State & Federal Policy/Legislative Impacts on P-E-G Operations
  • FCC Communications Security, Reliability & Interoperability Councils Updates
  • In-depth “How To” P-E-G Workshops & Problem-Solving
  • P-E-G Community-based Video Showcases

The Conference Planning Committee is actively seeking input on specific workshop topics and speakers in these and other areas – just e-mail them to seatoa@carolina.rr.com

SEATOA applauds the work of its member communities, businesses, and state agencies for receiving the following additional federal broadband funds:

  • Georgia for securing over $18.2 million for high speed broadband enhancement and the development of mobile and fixed wireless broadband services.
  • North Carolina for securing RUS awards of over $147 million for last mile Fiber-to-the-Home projects; an NTIA grant of over $75 million for “middle mile” fiber deployments across the state; and over $16.7 million for a public safety interoperable, wireless broadband network.
  • South Carolina for securing over $9.6 million for “middle mile” fiber deployments.
  • Tennessee for securing over $2.2 million for expanding access to broadband by providing academic support, workforce training, and computer equipment through its “Computers 4 Kids” program.

SEATOA would like to congratulate the new and returning NATOA Board of Directors members – including our own Sherry McCuller. We look forward to continuing to work with the NATOA Board and Staff to achieve our mutual objectives.

June 2010

SEATOA spent the month of June heavily organizing its grassroots, municipalities and the private sector, to block a North Carolina telecom industry-sponsored, anti-muni broadband bill – S1209.  This is the third year and fourth attempt by North Carolina's telephone and cable industry to terminate efforts by our municipalities to build fiber to the home systems. The bill took three different forms, from a moratorium on building muni broadband systems, to a bill limiting system financing to general obligation bonds and a referendum, to a Task Force and narrower moratorium which exempted current municipal providers.  S1209 was finally passed out of the NC Senate, after a stalwart attempt by a Senator from our western mountain rural areas to amend the bill and strip it of the moratorium.

In two days, SEATOA was able to rally 15 Senators to vote with this Senator.  However, the amendment failed – 15 to 33 – and the bill passed the Senate – 41 to 7 – and was passed on to the NC House, where it has been assigned to two committees. The NC state legislature’s session is expected to end in few weeks, and it is hoped the bill will not be addressed in time – hopefully being superseded by intense budget discussions during another harsh economic year in the state. (North Carolina has the 10th worst unemployment in the country).

SEATOA is grateful to Jim Baller, of the Baller Herbst law firm – who secured a letter from 8 nationally recognized private-sector companies and associations to our NC legislative leadership and Governor opposing the bill. These entities included Alcatel-Lucent, the American Public Power Association, Atlantic-Engineering, FTTH Council, Google, Intel, TIA, and UTC. 


March 2010

Real broadband deployment continues to be the theme for SEATOA in 2010

  • Early April 2010 will resurrect a 3-year battle by the state’s incumbents to stop municipalities from deploying broadband – namely fiber-to-the-home systems – in North Carolina.

  • SEATOA expects incumbent commercial providers will try to convince legislators that they need to approve a moratorium on all municipal broadband operations until the impact on the private sector can be studied more carefully.

  • In the meantime, SEATOA plans to assist local governments in making the case – echoed internationally, by Google, and by the FCC through its National Broadband Plan – that high capacity broadband (something incumbents refuse to build) is a well-known catalyst for rapid economic development and jobs. As the FCC reiterated in releasing its Plan – competition increases innovation and reduces subscriber rates. 

In April, D.C. comes to Asheville, NC for SEATOA’s 9th Annual Conference: “Expanding Community Networks.”  SEATOA is thrilled to have Blair Levin, Executive Director of the FCC’s Broadband Initiative, Mignon Clyburne, FCC Commissioner, Tom Power, Chief of Staff to Assistant Secretary Stickling at NTIA and Jessica Zufolo, Deputy Administrator of the RUS Broadband Grant Program speaking before our southeastern audience.  Conference registration is $150 for members. The Hilton at Biltmore Park Hotel room rate is $129/night. Topics will feature “how-to” updates on municipal broadband and PEG channel deployments in our four-state area. Click on the SEATOA’s website Conference link for more details.

 

February 2010

Real broadband deployment will be the theme for SEATOA in 2010, as the New Year introduced a renewed series of NC legislative committee meetings on the topic.

  • Early April 2010 will resurrect a 3-year battle by the state’s incumbents to stop municipalities from deploying broadband – namely fiber-to-the-home systems – in North Carolina.  SEATOA anticipates the same type of legislation will be introduced in other states in our area.

  • SEATOA expects incumbent commercial providers will try to convince legislators that municipal broadband deployments will reduce the State’s tax revenues. 

  • In the meantime, SEATOA plans to assist local governments in making the case – echoed both nationally and internationally and now by Google – that high capacity broadband (something incumbents refuse to build) is a well-known catalyst for rapid economic development and jobs.  And that competition increases total subscribership in communities because services become more affordable and widely available.  

NTIA and RUS 1st round broadband and computer grants continue to trickle out of the federal government.  These agencies missed their November 2009 deadline by more than three months and this handicapped the ability of first round applicants to apply for the 2nd, and final, round of funds, deadline March 15, 2010.  To date, key grant awards in SEATOA states include:

  • The North Georgia Network Cooperative (NGN) received $33 million for a combined middle mile/last mile network that will offer advanced fiber-to-the-home services in key underserved areas.

  • North Carolina received $28 million, awarded to MCNC for a large-scale middle mile network.

The beautiful mountains of Asheville, NC will host SEATOA’s 9th Annual Conference, focusing on community broadband and PEG issues under the theme “Expanding Community Networks” from April 26-27, 2010. Conference registration is $150 for members. The Hilton at Biltmore Park Hotel room rate is $129/night. Topics will feature national speakers on the FCC’s new National Broadband Plan and “how-to” updates on municipal broadband and PEG channel deployments in our four-state area. Click on the SEATOA’s website Conference link for more details.

 

January 2010

SEATOA filled the end of 2009 with visits to Raleigh, NC to monitor a review of last spring’s industry-sponsored anti-muni broadband bill “The Level Playing Field” Act.

  • On November 23 and Dec 14, 2009, representatives from the North Carolina League of Municipalities, the City of Salisbury, the City of Wilson, citizen activists and other local constituents descended on NC Legislature to again push back against industry charges that municipal broadband deployments will hurt taxpayers, hurt job development and even hurt the development of telecommunications in the state.

  • The cities responded that the reverse was actually true, and pushed for North Carolina’s state legislators to focus on broader broadband policy for the state, namely, setting a goal of fiber to the home for every resident in the state.

  • Presentations included documentation of the failure of North Carolina’s Video Service Competition Act, a state cable franchising law signed three years ago, which has led to no competition, no increased video choice or broadband availability or consumer accountability, and instead has led to increased cable rates.

  • Specifically described in this discussion were allegations that Time Warner Cable is predatory pricing in Wilson, NC and that the company is behind a two-pronged strategy to eliminate Wilson’s “Greenlight” network, NC’s first municipally-built ‘fiber to the home’ broadband system. This strategy includes lowering its Wilson subscriber rates below market pricing, while raising rates in the remainder of the state; and attempting to pass anti-municipal legislation that will block municipalities from building next generation, and truly competitive fiber infrastructures.

Planning is in full swing for the 9th Annual SEATOA Conference – “Expanding Community Networks” – to be held in Asheville, NC, from April 25-27th, 2010. We are lining up a great roster of speakers for this event and this is a great time of year to enjoy North Carolina’s mountain air – so plan to join us there. Click on the website’s Conference link for more details.