On Monday, a new bill introduced into the Arkansas State Legislature has the potential, if passed, to remove almost all existing barriers to municipal broadband in the state. SB 74 was introduced in the 93rd General Assembly, Regular Session 2021 by State Senators Breanne Davis and Ricky Hill and their counterparts Representatives Brian Evans and Deann Vaught. 

The legislation would substantially amend the state’s Telecommunications Regulatory Reform Act of 2013, which in most scenarios bans government entities from building and owning networks and delivering services to residents in pursuit of promoting competition and bringing Internet access to unconnected parts of the state.

SB 74 keeps an existing ban on providing basic local exchange service in place (i.e. telephone), but otherwise allows municipalities to build, buy, and operate network infrastructure to deliver digital voice, broadband, data, and wireless telecommunications service to anyone in the state. 

Slow Progress in Recent Years

Currently in Arkansas, municipalities are allowed to build or partner with private companies to build broadband infrastructure, but only if they acquire a grant or loan to do so and only do so in unserved areas. When policy veterans last commented on these particulars of the legislative landscape in 2019, they were worried that such geographic and financing restrictions would effectively preclude new networks, and they were right. 

SB 74 eliminates these two restrictions, which represents a significant step forward. It also adds consolidated utility districts to the list of eligible entities, removes the requirement to file a public notice, and dramatically expands the emergency services clause to include healthcare services, education, and “other essential services.”

We spend significant time and energy here covering the regressive impacts of state broadband policies which preempt local communities from creating competition and choice as well as connecting the unconnected by building their own networks. Most recently, we wrote about the FCC’s new 5G rules regarding locally owned and regulated utility poles, and the proliferation of small cell sites as mobile providers race to deploy tens of thousands of antennas as part of network infrastructure improvements. Its effects are already being seen in Milwaukee, where fee caps, shorter timing windows, and rights of way exemptions are having negative effects. 

But state preemption is a versatile legislative tool that extends well beyond broadband access, and a new report explores not only its increasingly common use but the negative impacts on communities in many instances across the nation.

This is the topic tackled by The Local Power and Politics Review, a joint project by ChangeLab Solutions and the Local Solutions Support Center. Its first annual report, released in November, brings together more than a dozen experts and advocates across an array of fields to address how “[i]nstead of rising above the fray, many state leaders have embraced negativity, taking aim at progressive localities, local leaders, policies, and programs by weaponizing preemption legislation and other means of control.”

A pair of broadband bills in Pennsylvania (one of which has been signed into law by the governor, and the other having passed one chamber) represent a collective step forward for broadband by updating regulations and establishing a broadband grant program so as to promote network expansion in rural and unserved parts of the state of Pennsylvania.

Fewer Restrictions, More Money

The first is House Bill 2438 [pdf], which allows electric cooperatives to use existing easements for an affiliate to deliver broadband service without re-negotiating with property owners. The bill also allows cable companies to use cooperative-owned poles with permission and in accordance with existing rates and regulations. It’s designed to make it faster, cheaper, and easier to bring Internet access to rural parts of the state. 

Johnstown Area Regional Industries entrepreneurial coach Blake Fleegle said of the legislation: 

Every county in our region is looking at bringing high-dollar earners to our region. Employers are finding people can be just as effective working in Johnstown as they would be in Washington, D.C., or Pittsburgh. But they need to connect, and that's where broadband comes into play.

Chad Carrick, President and CEO of REA Energy Cooperative, likewise welcomed the legislation while emphasizing the role electric co-ops will play in the state: 

It may be hard for some to believe, but there is a good 40% of Indiana and Cambria counties that either don't have broadband Internet access or it's not up to snuff, according to our surveys to our membership.

2438 passed the state House in June, the Senate at the end of October, and was signed into law by the governor at the end of last month. 

As Mayors must concern themselves with everything from public safety and health to the development of the local economy and the provision of essential municipal services, they tend to have a particular focus on the infrastructure necessary to support it all, amid a cacophony of competing interests.

Over the summer, having reached consensus on the fundamental importance of “the digital infrastructure of tomorrow,” a particular focus of the United States Conference of Mayors 88th National Annual Meeting was to issue a resolution declaring the necessity of “Preserving Local Public Rights-of-Way and Regulatory Authority to Most Effectively Deploy 5G Broadband Access and Bridge the Digital Divide during the COVID-19 Pandemic.”

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The Mayors’ resolution comes in response to the Federal Communications Commission’s (FCC's) 2018 preemption of local governments’ authority to regulate 5G infrastructure in their cities. 

At the heart of the regulatory debate: local governments’ ability to determine the amount of fees to charge mobile carriers that want to place 5G equipment in Rights-of-Way. In addition to putting limits on those fees, the FCC Order also sets strict timelines by which cities and towns must respond to carrier applications. The FCC decision, issued over the objections of industry observers and policy experts, essentially eliminates local communities’ ability to negotiate in order to protect their own Rights-of-Way and the poles, traffic lights, and other potential structures within those Rights-of-Way.

Preempting Local Authority

That community networks act as a positive force in the broadband market is something we’ve covered for the better part of a decade, but a new study out in the journal Telecommunications Policy adds additional weight (along with lots of graphs and tables) which shows that states which enact barriers to entry for municipalities and cooperatives do their residents a serious disservice. 

“State Broadband Policy: Impacts on Availability” by Brian Whitacre (Oklahoma State University) and Robert Gallardo (Purdue University), out in the most recent issue of the journal, demonstrates that enacting effective state policies have a significant and undeniable impact on the pace of basic broadband expansion in both rural and urban areas, as well as speed investment in fiber across the United States. 

Digging into the Data

The research relies on the State Broadband Policy Explorer, released in July of 2019 by Pew Charitable Trusts, and focuses on broadband availability across the country from 2012-2018. Whitacre and Gallardo control for the other common factors which can affect whether an area has broadband or not (like household income, education, and the age of the development), and combine the FCC’s Form 477 census block-level data along with county-level data to explore expansion activities over the seven-year period. By making use of an analytical model called the Generalized Method of Moments, Whitacre and Gallardo are able to track all of these variables over a period of time to show that there is a statistically robust connection between specific state policies and their influence on the expansion of broadband Internet access all over the United States. 

With the end of the federal Keep Americans Connected pledge and the failure of Congress to pass comprehensive broadband aid, it’s clearer than ever before that local governments are the last line of defense against the digital divide, which has been exacerbated by the ongoing pandemic.

Some communities have already taken steps to connect their residents, during the global health crisis and beyond. For example, the public school systems in San Francisco and Portland, Oregon, decided to cover the cost of broadband subscriptions for low-income students. In Chattanooga, Tennessee, the city’s municipal broadband network is partnering with local schools to provide free Internet access to all students that receive free and reduced-price lunch.

However, in 21 states, legal barriers — often enacted at the behest of corporate telecom lobbyists — prevent local governments from investing in community broadband solutions to close the digital divide.

To help local governments that want to improve connectivity navigate the various opportunities and obstacles, we at the Community Broadband Networks initiative at the Institute for Local Self-Reliance (ILSR) have teamed up with the Local Solutions Support Center (LSSC) to produce a number of helpful resources. We previously shared a step-by-step guide for establishing local broadband authority during the pandemic. Now, local officials and community advocates can access two more resources: a guide for local governments to act in the context of the pandemic, and an interactive state broadband preemption map.

Milwaukee County, Wisconsin, is currently experiencing firsthand the consequences of the Federal Communications Commission’s (FCC's) 2018 preemption of local governments’ authority to regulate 5G infrastructure in their cities. With its initial handful of applications for new small cell transmitters just submitted to the county board by Verizon under the new rules, local officials are grappling with a host of limitations — including fee caps, shorter timing windows, and right of way exemptions — which outline clearly a problem more and more communities will face in the coming months and years.

Less Say, Less Money

We pointed out when the FCC handed down the order in the fall of 2018 that it represented a significant giveaway to wireless carriers while placing additional restrictions and financial burdens on local regulators, most of which are county boards and city departments. Among the most troublesome of the order’s provisions are new 60- and 90-day approval windows for the installation of infrastructure on existing and new wireless facilities, a limitation to annual fee scales for small cell sites set between $100-250, a right now enjoyed by wireless providers to place infrastructure on municipally owned poles and traffic lights, and a rule that says if regulating authorities don’t get to an application within 60 days it automatically becomes approved. The 9th U.S. Circuit Court of Appeals upheld the fee cap in a ruling last Wednesday.

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As the Covid-19 pandemic continues and the federal response sputters, it’s clear that the responsibility of getting our local economies back on track now lies largely with cities and states.

To help state and local governments responding to the coronavirus, the American Sustainable Business Council (ASBC) released a set of policy recommendations, “From Crisis to Opportunity: Recommendations for State & Local Governments,” in late May. ASBC’s policy suggestions touch on various issues, including Internet access. The guide directs government officials to promote cooperative and municipal networks and remove barriers to community broadband in order to expand Internet access.

ASBC describes the thinking behind the recommendations:

As socially responsible businesses and thought leaders, we have long advocated for a triple bottom line of people, planet, and profit. None of these values are mutually exclusive. Together, through local investment, equity and accountability we can rebuild our post-COVID economy stronger, more sustainable, and enduringly just.

How Cities and States Can Rebuild Sustainable Economies

ASBC represents more than 250,000 businesses and advocates for a vibrant, sustainable economy. Read more about the group and its principles on its website.

The recommendations are focused on actions that state and local governments can take because they are on the frontlines of the pandemic’s effect on local economies. “Even with the passage of three federal stimulus bills (with more promised), these leaders will remain in the driver’s seat, and they now need bold ideas,” ASBC explains.

However, ASBC also sees the ongoing crisis as a chance to fix existing issues, saying:

We believe that this moment provides state and local governments an opportunity not only to continue leading the way through this crisis but also in solving the structural problems the federal government has too long neglected . . . Most of our suggested policies effectively provide not only economic stimulus but lasting social, environmental, and public benefit.

As the pandemic drags on, local governments across the country are looking for ways to connect their residents, who need better Internet access for everything from online education to annual taxes to telehealth appointments. But 19 states still place restrictions on cities and counties that want to invest in broadband expansion, hamstringing their ability to address urgent connectivity needs.

To help people figure out if their community is able to take action, we worked with the Local Solutions Support Center (LSSC) to develop a step-by-step guide for local officials and advocates. The guide includes the various considerations communities must make when developing a Covid-19 broadband response, including the extent of local government authority, state legal restrictions, and declaration of emergency powers.

LSSC describes the guide:

As the coronavirus pandemic spreads, local elected officials and advocates alike are asking what they can do for their communities across a range of policies — including to ensure that everyone has broadband Internet access available. This guide can help you determine whether your community has the authority it needs to adopt a particular policy.

View the guide on LSSC’s website or download the PDF below.

“What’s the Policy?”

The guide takes people through the following questions and action steps:

Update 7/7/20:

The U.S. House of Representatives passed the Moving Forward Act, which includes the Accessible, Affordable Internet for All Act, on Wednesday, July 1. The bill is currently in the Senate, where Majority Leader Mitch McConnell has announced his opposition to the legislation, calling it "pointless political theater," and saying, "this nonsense is not going anywhere in the Senate."

Original article:

Earlier this week, Democrats in the U.S. House of Representatives introduced the Accessible, Affordable Internet for All Act, a sweeping bill that would take major steps toward closing the digital divide.

We reported on the legislation yesterday, but today we want to take a closer look at the bill text [pdf]. Below, we examine some details of how the act would fund broadband deployment and affordable connections for Americans across the country.

Grand Plans to Build Broadband, Connect the Unconnected

Among the investments proposed in the Accessible, Affordable Internet for All Act, the largest is $80 billion to fund the construction of broadband networks in unserved and underserved areas. That amount dwarfs the Federal Communications Commission’s (FCC’s) upcoming $20.4 billion Rural Digital Opportunity Fund (RDOF).