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Bill Would Reverse Bans On Municipal Broadband

Yuppie writes "A bill introduced to the House this week would overturn bans that currently exist in several states that forbid cities and towns building and deploying their own broadband networks. The big telecoms may not be be too happy about the bill, however: 'The telecoms have historically argued that municipalities that own and operate — or even build and lease — broadband networks could give themselves preferential treatment. The Act anticipates that argument with a section on "competition neutrality." Public providers would be banned from giving themselves any "regulatory preference," which should create a level playing field for all broadband providers. Municipalities interested in getting into the broadband business would also have to solicit feedback from the private sector on planned deployments.' The full text of the bill (pdf) is available from Rep. Boucher's website."

29 of 157 comments (clear)

  1. preferential treatment by timmarhy · · Score: 4, Insightful
    "'The telecoms have historically argued that municipalities that own and operate -- or even build and lease -- broadband networks could give themselves preferential treatment"

    how the FUCK is that any different to what telecoms do NOW? i bet at&t give themselfs preferential treatment on lines they install to. what a bunch of 2 faced cockheads.

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    1. Re:preferential treatment by Divebus · · Score: 3, Insightful

      Well, SOMEONE has to give the telecoms some competition, if nothing else to keep them from raping the public. The U.S. is already the laughingstock of the planet for how behind our telephone systems and ISPs are. It used to be the other way around - the U.S. telephone system under AT&T was the best in the world (for what it was). Now everyone else is running rings around us with bandwidth and features while the U.S. telecoms are artificially limiting what they deliver. Go Munies!

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      Most of the stuff on /. won't survive first contact with facts.
    2. Re:preferential treatment by Cathbard · · Score: 3, Informative

      As an ex long term telco employee I can confirm that telco's give preferential treatment to corporate "strategic partners" (collusion anybody?) that would boggle your mind. These corporate discounts could never be matched by a municipality due to the scale involved. The amount of pocket pissing that goes on would make your stomach turn but when a telce does it it is is simply called standard business practices. How is a council giving preferential treatment to their customers any different?

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    3. Re:preferential treatment by thanatos_x · · Score: 2, Interesting

      With respect, insightful? Yes, it is true that the telecoms do give themselves preferential treatment, but such an ill-formed comment. Yes, the fact that we pay more for ten plus times less is very very sad, but this isn't digg... Vocabulary. A more elegant weapon for a more civilized time. See also capitalization.

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  2. Commie! by gowen · · Score: 5, Funny

    Goddamn activist legislators preventing ordinary Americans being price gouged by ISPs.

    Don't they know that that's SOCIALISM? And SOCIALISM is not just automatically bad, but Anti-American(TM) even when its not.

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  3. what type of "regulatory preference"? by PhrostyMcByte · · Score: 2, Insightful

    If an ISP decided it would be cool to allow uncapped transfer over their network (ie, no cost of switching to another ISP), would that be considered preference?

    1. Re:what type of "regulatory preference"? by TheRaven64 · · Score: 3, Informative
      Typically this kind of regulatory preference comes with certain extra demands. As I recall, he USPS is the only carrier allowed to take first class mail but they trade off for this is that they are required to provide equal cost delivery for everyone. Here in the UK, Royal Mail deliveries in rural Scotland are subsidised by the cost of stamps in England. The price of a stamp is set at close to an average delivery cost. If you used an unregulated private carrier, then they would charge you more for sending something from London to Scotland than to another part of London.

      The rationale behind this kind of regulation is that communication is vital economic infrastructure, and the flat rate fees make the country as a whole more competitive. When the post office was in charge of telecommunications, they were required to connect a certain percentage of the population each year. A private telecoms company could have just gone after the ones that gave the biggest ROI. This is happening now; you have a lot more options for broadband in Central London, where the population is densest, than in many other areas.

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  4. Not just big telecoms by Just+Some+Guy · · Score: 4, Insightful

    The big telecoms may not be be too happy about the bill, however

    I really have mixed feelings on this. On one hand, it'd be nice to actually get something cool like this for my tax dollars. On the other, I definitely don't want to see my city out-compete our wonderful local ISPs. If/when they became the only game in down, what's their incentive to maintain the networks? Will Joe Cityadmin give a rat's butt if I call to complain about an outage? And above all else, do I really want the government (even the friendly local variety) being my gateway to the Internet? I have nightmares of hearing a prosecuting attorney saying something like "our city access records indicate you posted anti-government statements to a communist website called Dotslash." Maybe that's unlikely, but tell me honestly you can't hear a mayor explaining how his city's network will be "a safe place for our children to play thanks to our new monitoring and filtering system" to thunderous applause. If there's a vibrant ecosystem of private competition in an area, great. If not...

    Help me out here. Do I root for the cities to undercut big telco (whom I customarily hate on general principles), or for private enterprise to win out over the government's desire to protect me from myself?

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    1. Re:Not just big telecoms by gowen · · Score: 5, Insightful

      what's their incentive to maintain the networks?
      The same thing that's their incentive to maintain all the other things local government provides: did the municiapal fire department become lazy because they've driven the private fire brigades of the 19th century out of business? Contrary to what they seem to teach in US schools, the profit motive is not the sole force for good in the known universe.
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    2. Re:Not just big telecoms by Daniel+Dvorkin · · Score: 3, Insightful

      The same thing that's their incentive to maintain all the other things local government provides: did the municiapal fire department become lazy because they've driven the private fire brigades of the 19th century out of business? Contrary to what they seem to teach in US schools, the profit motive is not the sole force for good in the known universe.

      Absolutely. I really get tired of the unquestioned assumption that businesses will be more responsive to their customers than governments will to their citizens. The fact of the matter is, once a business gets over a certain size -- and the big telcos definitely fit into this category -- they don't give a shit what Joe Consumer thinks, because they don't have to. They're omnipresent, and if one or ten or a thousand customers get tired of their lousy service, tough; they'll never notice the losses, and the customers either have no choice (as is usually the case with telcos, of course) or the "choice" of dealing with some other megacorporation that's just as bad (as is the case with cell phone companies.) Personally, I'd expect a lot better service from a city-owned ISP than from some Not-So-Baby-Bell that's headquartered halfway across the country and has most of its employees halfway around the world, and makes more money in a week than my city council spends in a year.

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      The correlation between ignorance of statistics and using "correlation is not causation" as an argument is close to 1.
    3. Re:Not just big telecoms by Proofof.+Chaos · · Score: 2, Insightful

      I don't know if you're trying to be sarcastic or not. It sounds like you think that the government should simply regulate ISPs. I've never taken any econ. classes, but all you have to do is look around to see that government regulating private industry gives you the worst of both worlds (government providing something as a public service vs. taking a hands off approach and letting the market work itself out). For example, right now most cities provide your sewer/garbage collection as a social service, and the fees are usually pretty reasonable because they are determined by elected officials. On the other hand, they leave retail services up to the private sector, which also results in pretty reasonable costs because of competition. But when the government heavily regulates a privately owned industry, each side can blame the other as prices go up and service degrades. It's a perfect symbiotic relationship where the politicians stay in office and the tycoons keep making money.

      The problem with socialism vs. capitalism is that compromise seldom works. You have to decide which things are best left to government to provide, and which things are best left to the private sector.

      As far as internet goes, I think it's too early to decide. Let's let those cities that want to, provide it as a public service, and those cities that don't, leave it up to private industry. After a few years we should start to see which works better.

    4. Re:Not just big telecoms by Anonymous Coward · · Score: 3, Insightful

      It's quite simple actually: Whenever there is a practically undividable resource, regulation is necessary if the government doesn't manage the resource completely. You can't have three competing roads from A to B and you can't allow one private entity to freely exploit a monopoly on getting from A to B. The situation is similar with last mile network access. Multiple competing metropolitan and wide area networks are economically feasible, but the free market tends to leave people with only one choice for last mile access (or two by companies which are not in the same primary market). Regulating equal access to the last mile has proved quite successful in the EU, which started out with government owned telcos.

    5. Re:Not just big telecoms by Daniel+Dvorkin · · Score: 2, Insightful

      So I take it you've never dealt with the IRS, DMV, EPA, or most other government agencies that people have deal with on a regular basis.

      No, I deal with them all the time, like everybody else. Well, okay, not the EPA, since I'm not really involved in anything that falls under their jurisdiction -- unless you count separating my garbage for recycling, which, BTW, where I live (Minneapolis) is a service provided by the city, and functions quite smoothly. We have three garbage cans instead of one; we separate garbage into paper, plastic and glass and metal, and "everything else"; the city takes care of the rest. Easy, smooth, and painless, unlike everywhere else I ever lived, where if you wanted to bother recycling, you had to drive stuff to the (private) recycling center yourself, no doubt doing more harm than good overall.

      Even ATT is more customer oriented, and it's just about the worst the private sector has to offer.

      In my experience, AT&T is actually better than the other Baby Bells, or Comcast or Time Warner for cable. OTOH, the last time I dealt with them, (a) it was actually AT&T, not the rebranded SBC, and (b) it was only for long distance, not local service. So I can't say what they're like now. My guess is, they suck just as much as Qwest, which is kind of my point: they all suck. They suck, in fact, just as much as any giant government agency you care to name. And they suck worse than city agencies, which at least can function on a human scale.

      Big Anything sucks. Big Business, Big Government, Big Religion -- they all suck. They all have the same pathologies. What the "Anything" is usually matters less than the "Big" part.

      I'm a big fan of local ISP's, as they were in the days of dial-up; generally I think they don't suck at all. But the fact of the matter is, with broadband, almost without exception, you have to pay a giant telecom for access. Given the choice between local ISP's competing freely, and municipal broadband, I'd choose the former. But that's not the choice most people get. It's not city vs. local business, it's city vs. big business. And again, in that case, the former makes more sense. If you can come up with an idea for a regulatory scheme that would make it possible for local ISP's to offer broadband access without dealing with the big telecoms, I'd be interested to hear it ... and then good luck getting it past AT&T's and Qwest's and Comcast's lobbyists.

      Well, that's probably because you don't have a lot of experience dealing with underfunded, understaffed, municipal services.

      I used to work for one: Denver Health Medical Center, nee Denver General Hospital, aka "The Knife and Gun Club." Were we perpetually underfunded and understaffed? Yes. Did we manage to be one of the top trauma and emergency medicine hospitals in the nation? Also yes. If you're shot, get in a car crash, or have a heart attack anywhere in the Denver metro area, you're better off at DHMC than any private hospital; and for less dramatic stuff, you're at least as well off. Same thing here in Minneapolis -- when the (city) paramedics and firefighters were pulling people off the I-35W bridge, they didn't take them to private hospitals, they took them to Hennepin County MC. There's a reason for that.

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      The correlation between ignorance of statistics and using "correlation is not causation" as an argument is close to 1.
  5. Not really a problem by drsquare · · Score: 2, Insightful

    As long as it's not paid for by the tax-payer I don't see the problem. Otherwise it's just a waste.

    1. Re:Not really a problem by argiedot · · Score: 2, Insightful

      I suppose he means that while the municipality does own and run the service, it charges for it and the charges go to keeping it maintained.

    2. Re:Not really a problem by TheRaven64 · · Score: 2, Insightful

      It would require an initial investment, which would have to come either from taxes, or from a private finance initiative. A compromise might be a good idea; allow local businesses and residence associations to fund some of the development in exchange for being in the first connected areas.

      Then there's the matter of running costs. This could be done by selling advertising space, although I'm not a huge fan of the concept. It could also be done by offering a premium service. There are a few options for this. The free service could be bandwidth-limited, and people who wanted more could pay for it (either with a subscription, or on a one-off basis). Alternatively, it could be free for non-commercial use, and companies could pay a fee to use it.

      If the aim is widely deployed broadband, it seems that a better solution would be making it illegal to ban reselling of bandwidth bought from an ISP. That would allow anyone to run an access point for general use. Then all you need is a WAP that routes all traffic from unknown hosts directly to the Internet. A city could sell these cheaply (buy a load, sell them at close to wholesale) and have decent coverage up quickly.

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  6. Heaven Forbid.. by sieb · · Score: 3, Interesting

    municipalities get fed up at the empty promises the Telco's give them about getting them wired, and how they can't make money if the municipality does it themselves.. Given how the Telco's already squandered the millions of dollars that were supposed to be used for upgrading broadband, I would be in favor of locking out Telco's all together. Like hell I am going to pay for my city to upgrade its broadband only to hand it over to a corporation to get neutered, all the while they [the telco] will complain that "this setup sucks, if you had let us install it as we promised, it would have been better!"

  7. Correct me if I'm wrong... by Elyscape · · Score: 5, Insightful

    So, if I understand this properly, the telecoms don't want municipalities to give themselves "preferential treatment". That makes sense.

    Wait a second. Are these the same telecoms that want to be able to sell "preferential treatment" at the detriment of everyone else? As a matter of fact, I think they are.

    The only possible conclusion I can draw from this is as follows: it's okay for large companies to fuck people over, but governments damn well better... not. Or something.
    What the telecoms need to realize is that the governments have been fucking us over for centuries, if not longer, to the point that they've nearly perfected it to a (very perverse) form of art. The telecoms can't hope to compete, though that doesn't seem to be stopping them.

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    1. Re:Correct me if I'm wrong... by Winckle · · Score: 2, Insightful

      I love the use of language, when they do it, it's because they cannot maintain "network neutrality", when someone does it to them, they are being hurt by "preferential treatment".

  8. postal roads? by Joseph_Daniel_Zukige · · Score: 2, Insightful

    Ya know, I keep thinking about the Constitution's mandate to build postal roads, and I'm still having trouble understanding why the national government is not the primary interstate ISP, and why the state and local governments are not the primary state and local ISPs.

    I understand the dangers in letting the government bureaucracy develop cutting edge tech, but, if the state is always so bad with infrastructure tech, why aren't more bridges falling down every year?

    joudanzuki, with reservations

  9. Re:Oh noes! by Adriax · · Score: 3, Funny

    Price drops? Hell no, 10% across the board price jump to cover "losses due to unfair/unconstitutional competition" and add an extra year to contract lock-ins.

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  10. It's a good thing by Odonian · · Score: 2, Interesting

    Our internet service comes from our light department. Our town has no cable, and DSL covers only about half the town due to it's size. Last year the municipal light dept rolled out WiMax. It's not perfect, but it's damn better than dial-up. Before they went ahead though they had to write a letter to Verizon to get permission to enter the market, presumably due to this law or fear of it. Fortunately Verizon said yes (our town has only 1500 or so homes in it, so they probably didn't care - too busy rolling Fios out to people who already have broadband I guess) If Verizon had said no for some reason though, my phone line would be busy right now, and I probably wouldn't have loaded this article yet. So yes it's a good thing for competition in existing broadband markets, but it may also encourage other frightened municipalities from providing missing service.

  11. Deregulated in many parts of Europe by DELNI-AA · · Score: 2, Informative

    Interesting that the US is taking a rather regulation-friendly route! In Sweden, anyone can apply to each local municipality to pull your own fiber - and I have never heard anyone being denied that. In rural areas aswell as cities, many municipalities have pulled their own fibers in order to give their areas a improved competitive edge when any of the main telcos have not been up to the task quick enough. The business model many have choosen is a completely open one; the offer to lease dark fibers, wavelenghts on lit fibers, and in many cases all the way up to the IP level. And yes, they will give themselves preferential treatments by connecting schools, administrations and hospitals to a well working, high-capacity network at competitive cost -. a service level that would not have been available to them otherwise. Many individual networks are interconnected, forming regional gigabit networks. Facilities for co-location of equipment is generally also on offer. I believe most Telcos has seen this as an opportunity since it gives the access to more infrastructure at lower risk of investment. I woud attribute the high broadband penetration and low costs in Sweden partly to this de-regulation. According to recent figures 97% of the households can have at least DSL access and about 20% have a fiber to their home.

  12. Municipal broadband works well in Sweden by SwedishPenguin · · Score: 5, Insightful

    Here in Stockholm, there is a city owned company called Stokab, they build and own fibers to city owned apartment buildings as well as coop/condo buildings that sign a contract with the company. This company only owns and maintains the fibers, another company, called OpenNet, operates the fiber network. The actual services are provided by private companies, who are allowed equal access to the network. I have a choice between about 8 ISP's (with speeds between 10 and 100 Mbps both downstream and upstream, costing about 300 SEK (32/$45)/month for 100/100 Mbps), 4 VoIP providers, and (only) 2 TV providers, all operating over the fiber.

  13. Mod Parent Funny by mvdwege · · Score: 2, Funny

    Telecom is extremely competitive

    You owe me a new keyboard.

    Mart
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  14. What ever happened to state's rights? by j1mmy · · Score: 2, Interesting

    Which part of the U.S. Constitution authorizes Congress to do this? Does the 10th amendment mean anything anymore?

  15. Mixed breed by keithjr · · Score: 2, Insightful

    I wager the future of public internet access will be a combined effort of private and public initiatives. Take for example the town of Brookline, MA, which recently implemented the nations first border-to-border wireless internet access system. It was an initiative based in the town, organized by the local government, but implemented by a private firm (Strix Systems I believe) to get a professional infrastructure in place. Although it's a pay service for most homes, public hotspots exist in parks, recreational areas, and some public housing. In short, with this bill I think we can at least look forward to more systems like this cropping up, which blur the line between municipal implementation and private enterprise. In the end, it means more choice for the consumer and more pervasive internet access for the people themselves.

  16. Screw this by SpectreBlofeld · · Score: 2, Insightful

    Why don't we go ahead and put all goods and services in the hands of the government, because everything would be cheaper, right? Because they're not operating for a profit? I don't want to pay for your broadband, or anyone else's, with my tax dollars. Nor do I want my Internet regulated by those who brought us the PATRIOT act, the DMV, and the IRS. The government is terrible at managing cost-effective solutions to anything because they're spending other people's money. Take this million-dollar outhouse, for example: http://www.jldr.com/oh1mill.html . "The whole project is loaded with Park Service overhead. The agency already has spent $860,000 for design and construction supervision teams. In all, the job could end up costing taxpayers more than $6 million." It's a four-holer outhouse with no running water. The worst argument for municipal broadband that I've heard is that it helps the poor who can't afford Internet access. I suppose we'll be buying them laptops with WiFi, too. The people that benefit most from municipal broadband are the people that can afford it but don't want to pay. If you want Internet access, pay for it. It's a luxury item that didn't exist in the public's perception fifteen short years ago. Don't levy taxes on the poor who can't afford or need a MySpace page so you can read Slashdot for free.

    1. Re:Screw this by Enigma2175 · · Score: 3, Informative

      The problem is that the municipalities are granting monopolies on last-mile transport to private enterprise instead of handling it themselves. If I have to pay Comcast or Qwest for my connection, they insist that they make a profit off of it. However, if my city owns the network all they demand is that they break even on it. My current connection is 15 Mb/s symmetrical fiber. It costs me about $36/mo. Previously I was paying Comcast $45-$50/mo for a 3Mb/512Kb connection. Yes, it cost the city some money to lay the fiber but now that it is installed the maintenance is fairly cheap and EVERY house in the city has a connection to the network. There are multiple service providers for data, phone and TV so there is no monopoly pricing, if you don't like your current provider you can switch. You can rant about government pork, but the local government generally does a better job of controlling overhead and grift than the federal. You are criticizing hypothetical networks but I am sitting on a real one and from my perspective, it is sweet. I am getting way better speeds at a lower price than I was before. Yes, some of my tax dollars had to be used to build the network, but with the monthly cost savings I am coming out ahead. I am generally not for expanded government but where it comes to natural monopolies like utilities and roads, sometimes government does a better job than business.

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      Enigma