States Compete for Efficiency and Opportunity – via Technology

This fall, all 50 states will have the opportunity to find help (in the form of cash grants) from the federal government to assist in developing their own authorities to map broadband availability. These federal grants are also available to assist in addressing broadband supply, demand and uptake rates in households, businesses and major community institutions in each state. Known as the Broadband Data and Improvement Act of the American Recovery and Reinvestment Act (ARRA), between $1.3 and $3.8 million is available to each state depending on the competitiveness of their grant applications.

Why is this so important to citizens? Broadband deployment enables better access to health care and educational opportunities, while also enhancing economic competitiveness – among countless other benefits. For the first time, governments in all 50 states will be able to take a good look at how they interact with citizens as they contemplate greater broadband availability.

Here are some examples of how greater access to government services could help citizens:

Better, Faster, Cheaper is a new Web site of the Harvard University Ash Institute for Democratic Governance and Innovation, and aims to provide a forum for government officials to post best practices. There is currently a very robust ongoing column about technology and government, well worth perusing.

On his way out of office, former Iowa Gov. Tom Vilsack worked with legislative leaders to develop an “Office of Lean” in the Department of Management. The goal of this initiative is to identify and eliminate wasteful or overlapping spending – saving money for the citizens of Iowa while simultaneously improving services. The bonus? Participating government departments are given the option to retain up to 50 percent of the identified savings.

Last year, Utah’s state government transitioned to a four-day work week and opted to close public buildings on Fridays. They realized an immediate annual savings of $4 million in energy costs alone. Utah has now moved more than 850 services to the Internet. According to state CIO Steve Fletcher, it has been very successful with citizens.

So again – how can technology help? ARRA grants across America will jump-start broadband and enable states to deploy this infrastructure faster; it will be a sight to behold when more private, government and nonprofit initiatives are funded to deploy broadband. This will also assist community anchor institutions (schools, libraries, hospitals, etc.) to become part of statewide broadband networks – whether these networks are run by government, nonprofit or private sectors.

We are witnessing a paramount shift in how governments deliver services – driven wholly by technology. But when you really boil it down, the citizens will also have a tremendous impact on the new and fresh ideas of how this will actually come to fruition. How can technology make your state government greener? How can technology reduce the cost of government? How can citizens find government more transparent with broadband access? These are your questions – but are they being directed to your government?

Broadband on Jones St. & National ARRA update

As we head into July, we are likely looking at the last few weeks of the N.C. General Assembly’s legislative session. So, what’s happened? As far as broadband legislation, several bills have made it into law, primarily those supported by the telecommunications service providers.

HB135/SL 2009-80 – Broadband Service Providers
This bill allows companies that already provide broadband to expand their service areas for voice service. This was signed into law on June 11.

SB889/SL 2009-202 – Utilities/Carrier of Last Resort
This bill allows for local exchange companies to, in some cases, be granted waivers of their carrier of last resort obligations for certain subdivisions and other defined areas. This was signed into law on June 26.

HB1180/SL2009-238 – Consumer Choice and Investment Act of 2009
This bill decreases regulation on local exchange companies in their provision of voice service. This was signed into law on June 30.
SB357– Utilities/Regulation of Pole Attachments
This bill requires municipalities and membership corporations to allow the use of their poles, ducts and conduits by communications service providers and authorizes the North Carolina Business Court to resolve disputes around use. This bill was ratified July 2 and is now waiting to be signed into law.

So with the final budget still in limbo – the session is not over, but these are some of the key broadband bills that have made it into law, or are at least headed in that general direction.

So what happens now? The state budget is expected to pass in the next couple of weeks. The e-NC Authority expects to retain much of its recurring operating funds so that we may continue to keep our doors open for the 2009-2010 fiscal year. Unfortunately though, the latest versions of the budget do not contain funding for broadband-related grant programs as requested by the e-NC Authority. We are still pushing for funds that could be used as match for grant applications on broadband projects forthcoming from the American Recovery and Reinvestment Act of 2009 (ARRA).

And in other big news…

The U.S. Department of Agriculture Rural Utilities Service (RUS) and the National Telecommunications and Information Administration (NTIA) of the U.S. Department of Commerce released the Notice of Funding Availability this week for the RUS Broadband Initiatives Program (BIP) and NTIA’s Broadband Technology Opportunities Program (BTOP).

In North Carolina, the Office of Economic Recovery and Investment has been holding meetings of its Broadband Task Force (although the state does not have direct input on funds distributed by RUS and NTIA). At the next meeting of the group in July, Connected Nation’s online maps of North Carolina are to be presented.

In other big happenings, CenturyTel and EMBARQ announced this week that they have completed their merger, impacting 33 states. And last month, Verizon Communications announced the sale of its landline service in 14 states, including in North Carolina. Meanwhile, AT&T continues to focus on build-out of its mobile 3G wireless network.

Planning Broadband for the “New Normal”

In his recent conversation-starter essay, The New Normal, Ian Davis poses the question of “What comes next?” in terms of our current economic turbulence. Davis’ basic premise is that the current downturn is fundamentally different from recessions of the past, and that we are about to face a restructuring of known economic order. He states that the “new normal” will be shaped by a confluence of powerful forces – some arising directly from the financial crisis and some that were at work long before this all began. One-time factors such as the entry of women into the labor force and loads of new college graduates conveniently coincided with peak spending years of the baby boom generation – all helping to boost consumption-driven growth since the 1980s. It is clear that these forces will not predominate in whatever emerges. Rather, Davis says that the factors shaping the world economy of the near future are less leverage and more government.

We already see evidence of the effect these factors are having on efforts to stabilize the financial crisis and revitalize growth in the banking and financial services sector. In the arena where the e-NC Authority is most directly concerned (broadband deployment), decreased leverage is sparking a new wave of mergers and acquisitions, delays in equipment upgrades and new deployments and reduced investment in product R&D. Countering these negative trends is another that makes us cautiously optimistic: increased interest in broadband at the highest levels of federal government through targeted investment of the American Recovery and Reinvestment Act (ARRA).

On Feb. 17, 2010, at long last, a national broadband plan will be delivered to Congress by the Federal Communications Commission (FCC). As its primary goal, this plan will espouse ubiquitous and affordable broadband access. On May 22, 2009, acting FCC chairman Michael, J. Copps made an important down-payment toward the national plan with the release of the report Bringing Broadband to Rural America. This report fulfills a requirement of the June 2008 Farm Bill that the USDA and the FCC submit a rural broadband strategy to Congress. Other critical federal broadband legislation includes the ARRA that will provide funds to map the current broadband footprint and help fund network deployment to unserved and under-served communities, and the October 2008 Broadband Data Improvement Act that requires the FCC to deliver an annual status report to Congress that benchmarks progress toward ubiquitous broadband access.

Highlighted recommendations contained in the Rural Broadband Plan include:

• Improve coordination among federal agencies and with stakeholders to better harmonize broadband agendas and working definitions – leverage broadband dollars across federal agencies and improve communication via an improved Web site
  
• Assess and address broadband needs thorough accurate mapping, education and training to stimulate demand – and provide subsidies to increase penetration while decreasing the cost of deployment
  
• Overcome challenges through consideration of universal services reform, network openness, spectrum access, middle mile and speed access reforms, inter-carrier compensation, access to poles and rights-of-way and tower studies
  
• Monitor and adjust the plan through annual status reports to Congress

In support of a national vision for broadband, acting FCC Chairman Copps harkens back to other instances where leadership and vision were successfully employed in the face of considerable opposition – and those adventures ended up delivering critical infrastructure that catalyzed and sustained economic growth. Think about it – he’s right. U.S. Postal Service. Transcontinental Railroad. Interstate Highway System. Rural Electrification and its spin-of, the Rural Telephone Cooperatives. All then of course, the Internet itself. All of these initiatives represent transformative public investments whose development depended on a strong and coordinated national vision. We agree with Copps’ statement that it is time for the United States to meet the challenges of the 21st century with universal broadband deployment. Whatever our collective “New Normal” turns out to be, we will be better prepared to meet it if we are all connected.

The Latest: Broadband on Jones St.

As we move into June, there is now a somewhat clearer picture of how North Carolina’s current connectivity-related bills are moving and shaking within the General Assembly. Much remains to be seen, but we understand that about half of the legislation related to connectivity made the crossover deadline on May 14. Baby steps, right?

So, what is crossover, you ask? This is the deadline for when legislation that does not involve money must be passed by one chamber (read: the House or the Senate) and been tossed to the other chamber. If legislation doesn’t pass in one chamber by this deadline, it’s essentially dead-in-the-water for this year. Some exceptions can exist for this rule, but that’s usually only the case if the legislation is being sent to appropriations or revenue committees. Bills that did not meet the crossover deadline can still be considered in some type of study committee after this year’s session. If they are in a study committee, then they can roll their decisions into bills that can be considered next year. All appropriations- and revenue-related bills are still under consideration for this session.

Here are the connectivity-related bills that met the crossover deadline, and still up for consideration by the N.C. General Assembly. (HB refers to House Bill, SB refers to Senate Bill.)

HB135 – Broadband Service Providers
This just passed the Senate Commerce committee, and would allow broadband service providers to also sell voice service in their area.

HB136 – DOT/Fiber-Optic Cable
This legislation is now in the Senate Finance committee. It would allow the N.C. Department of Transportation to acquire right-of-way for fiber optic cable enabling broadband communications.

HB530 / SB889 – Utilities/Carrier of Last Resort
The House version of the bill is now in the Senate Commerce committee and the Senate version is now in the House Public Utilities committee. This legislation would further authorize the N.C. Utilities Commission to designate carriers of last resort.

SB357 – Utilities/Regulation of Pole Attachments by Communications Service Providers
This is now in the House Ways & Means/Broadband Connectivity committee. This bill would require municipalities and membership corporations to allow the use of their poles, ducts and conduits by communications service providers and would also change the handling of related disputes between entities.

SB1004 – Level Playing Field
This is now in the House Public Utilities committee, and authorizes the Revenue Laws Study Committee to research local government owned and operated communications services. The original bill proposed adding restrictions to municipalities providing broadband service to their community. The e-NC Authority’s position on this issue is that local governments should have the right to offer broadband services when the service available does not meet the needs of the local community.

HB1180 – Consumer Choice and Investment Act of 2009
This just passed the Senate Commerce committee, and would decrease regulation on local exchange companies in their provision of voice service.

The e-NC Authority’s funding legislation – HB532 and SB697 – are in appropriations committees, so they are still up for consideration in this session. During the first week of June, the appropriations subcommittees will likely make their funding recommendations to the chairs of the full appropriations committees. At that point, the House budget will quickly take shape. Ultimately, a conference committee will be appointed to work out the differences between the Senate and House budgets.

As everyone knows, there continues to be a budget shortfall for the current fiscal year, and low projected revenues for the upcoming year. In fact, experts are saying that it could be as late as 2013-2014 before the state can expect to generate enough revenue for a $20.8 billion state budget again (this was the initial budget for 2008-2009).

So – for all the broadband advocates in North Carolina, we still need you to talk to your representatives about the need to make such a critical investment, and to continue to provide financial support for the e-NC Authority. Always remember that, for better or worse, legislators are expected to understand and track thousands of bills and different policy issues, so please help with continuing to educate them about the importance of broadband for economic competitiveness through job creation in our state – for every dollar invested in broadband is expected to return ten-fold to North Carolina’s economy.

"Shoot for the Moon:" starting a new business in rural Anson and Union counties, N.C.

Sheri Strawn, owner of Hip Chick Accessories in Anson and Union counties, N.C., tells her story about how her business got started through the affordable support offered at New Ventures Business Development, Inc. (www.nvbdi.org). Strawn believes that rural communities must have local support for entrepreneurs as a key strategy for that area's economic development plan.

Lacking broadband infrastructure in Halifax County

Florine Bell, a community organizer in Roanoke Rapids, N.C., explains the value of high-speed Internet services to her area and its ability to impact economic improvement.

Lacking broadband infrastructure for Alleghany County (N.C.) school children

Dr. Jeff Cox, superintendent of schools for Alleghany County, N.C., discusses the "digital divide" that he sees for area students and why broadband deployment must be a priority for state government in terms of educational advancement.

Broadband in Rural N.C. - Looking at the 2007 numbers

In North Carolina, there are nine telephone membership cooperatives, six privately-held telephone companies, six publicly-held telephone companies and one municipal telephone company. Here’s how their Internet service breaks down:

The telephone membership cooperatives serve approximately 4 percent of the access lines in North Carolina and have made DSL service available to 98 percent of their subscribers (note: a number of them make service available to 100 percent of their subscribers).

The six privately-held companies serve approximately 6 percent of the access lines in North Carolina and make DSL service available to 98 percent of their subscribers.

The one municipal group serves approximately 0.05 percent of the state’s access lines and has made DSL service available to 100 percent of subscribers.

But here’s the real story…

The six publicly-held companies serve approximately 90 percent of the access lines in North Carolina (and actually, two significant companies in that mix serve 88 percent of the lines). Combined, the six publicly-held companies make DSL service available to approximately 80 percent of the access lines in the state. These companies are now headquartered outside of the state and financial decisions on deployment of specific telecommunications services are now mostly made at that corporate level.

There are approximately 600,000 households in North Carolina that do not have access to any type of high-speed Internet service, and most of these households are in rural communities. As an economy, we’ve long-since passed the point where Internet is a luxurious or insignificant pastime for people with disposable income. It is a utility and a basic infrastructure – no different from water, sewer, roads and electricity.

So, how do citizens solve the problem of not having service?

Call customer service?
Many citizens tell us that this doesn’t work, even when they are armed with community petitions that beg and plead for service.

Escalate the issue to someone higher up in the company?
Again, many citizens tell us that this also does not work, but we always suggest that they continue to try.

Call the Utilities Commission?
By law, they don’t regulate Internet services.

What’s left?
Contact your state and federal representatives. They are the only ones that can bring about a change in the way companies operate. (For example, they can provide incentives to nonprofit, private and public sector providers to encourage deployment to homes and businesses.) Always remember that your elected officials are in a position of power – but only by virtue of your vote.

InternetforEveryone.org Town Hall Series Coming to North Carolina

InternetforEveryone.org - a national initiative of groups that are working to bring the benefits of a fast, affordable and open Internet connection to everyone in America - will hold its second town hall meeting on March 7 in Durham. This event is part of a nationwide series designed to give local citizens a seat at the table as new leadership shapes America ʼs broadband future.

WHAT: InternetforEveryone.org Town Hall Meeting
WHEN: Saturday, March 7, 11 a.m. - 4 p.m.
WHERE: Durham Marriott Convention Center, 201 Foster St., Durham

High-speed Internet, or "broadband," is becoming a crucial public necessity - but more than 40 percent of all U.S. homes are not connected or use slow "dial-up" technology. To address this digital divide, President Barack Obama has vowed to "expand broadband lines across America," and Congress is poised to spend billions on broadband as part of its economic stimulus bill. InternetforEveryone.org will deliver feedback from the Durham town hall meeting to the Obama administration and Congress as a national guide to building a better Internet.

"Leadership in Washington has made Internet for everyone a national priority," said Timothy Karr, campaign director of Free Press, the organizer of InternetforEveryone.org." But getting everyone connected wonʼt happen overnight. In North Carolina alone, more than 3.5 million citizens are without high-speed access. Building an open, fast, affordable Internet is a process that requires true public participation. Washington must listen to the people of Durham , and others across the country, in order to build an Internet that works for all Americans."

For more information, visit www.InternetforEveryone.org/Events/Durham.

Lacking broadband infrastructure in western N.C.

Andrea R., a telecommunications business consultant in Jackson County, shares her perspective on the need for connectivity in western North Carolina and industry's lack of willingness to provide it. These comments were shared at a public meeting about poor Internet access in North Carolina.