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.

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.