Tag Archives: Internet

Michigan law makes fight for municipal broadband an uphill battle

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By Sheila McGarth
WKTV Contributing Writer

There are a number of reasons that a municipality may seek government-run broadband such as faster service at a lower cost, encourage economic development, and provide economic development. (pxhere.com)

For more than a decade, municipalities around the United States have been starting their own government-run broadband networks to bring high-speed internet to their residents. 

They might do so for a variety of reasons: to provide residents faster service at a lower cost, to encourage economic development, to provide high-speed internet to areas that private Internet Service Providers aren’t interested in serving, or to bring more economical connections to urban areas where residents can’t afford the service provided by private ISPs.

But due to laws on the books in Michigan, cities can face significant obstacles in starting their own network.

Michigan is one of 18 states that put restrictions on municipal broadband programs. Under the Metropolitan Extension Telecommunications Rights-of-Way Oversight Act of 2002, public entities can provide telecommunications services only if they have first requested bids for the services and received fewer than three qualified bids. They also must subject themselves to the same terms as those specified in their Request for Proposal.

 

Around the United States, measures regulating municipal broadband are enacted largely due to the influence of telecommunications companies wishing to be shielded from competition, according to MuniNetworks.org, a Community Broadband Networks Initiative of the Institute for Local Self-Reliance.

According to the Common Cause Education Fund, which tracked the spending of telecommunications companies for the years 2019 and 2020, Comcast spent $13 million on lobbying in 2019 and $14 million in 2020. The company spent $15 million on political contributions and expenditures in the 2020 election cycle. AT&T spent $11.5 million on lobbying in 2019, $11 million in 2020, and $13 million in political contributions in 2020.

Some small cities in the Michigan, such as Marshall, have been able to start their own network because they sent out a Request for Proposal and no ISPs responded, according to the Battle Creek Enquirer.

The City of Holland is hoping to be the next Michigan city to have its own fiber network available to all residents. Holland plans to expand an existing downtown network to every address in the city if voters approve a millage in August that would pay for its construction. The city’s Board of Public Works would run the fiber network as a public utility.

Holland is exempt from the Metro Act provisions because their fiber system predates the Metro Act, according to Ted Siler, utility services director for the city. They started it in the 1990s to connect their public utilities.

But even though the regulations don’t affect Holland’s plans to build a fiber network in the city, there are still parties pushing to stop it.

In late May, Holland residents began getting a “push poll” text from G1 Research. While purporting to be an opinion poll, the questions aligned with talking points by conservative commentators who believe municipal broadband networks place a unnecessary burden on taxpayers.

Daniel Morrison, a broadband activist who leads the civic group hollandfiber.org, said he didn’t know who was behind the push poll. All he had were “rumors and suspicions,” he said.

But he believes the Holland community supports the plan.

“I think the community is behind this because we have such a well-respected utility that takes good care of us,” he said. “It’s very clear to residents why a community-owned broadband utility fits in really well and would be an improvement over what they have now.”

Telecommunications companies aren’t the only ones trying to halt municipal broadband networks. Conservative lawmakers routinely introduce legislative restrictions because they feel municipal networks raise taxes and are not a cost-effective solution.

Holland representatives believe there is support to have a government-run broadband within their city.

Some studies have shown that municipal networks don’t attract enough users to pay for themselves. Elizabeth Hicks, U.S. affairs analyst at the advocacy group the Consumer Choice Center, cites a 2017 study by the University of Pennsylvania Law School concluding that of 20 municipal fiber projects that reported results of their municipal operations, 11 generated negative cash flow, and only two were on track to break even.

“What happens if there’s not enough consumers who end up signing up for the municipal broadband services or network? If that does happen – and what we see happen across the country with other municipal broadband networks – is the taxpayers within that municipality are stuck holding the bag for this failed network. So not only do they have a network that doesn’t work, but now they’re paying for it with their own tax dollars.”

But according to MuniNetworks.org, several of the cities that were subjects of the University of Pennsylvania Law School study disputed the accuracy of the numbers used in the calculations. The authors of the study issued a correction to some aspects of their report. The University of Pennsylvania released an updated study in January this year which again found that the actual performance of municipal broadband projects fell short of their financial forecasts.

Hicks said she believes everyone should have access to high-speed internet at reasonable prices, but that municipal networks are not the most effective way to do that. She said she has seen public-private partnerships work in rural areas where it’s cost-prohibitive to bring fiber. Cable and satellite service could be other options to consider, she said, or government subsidies for broadband in areas where there are ISPs providing service, but it’s too expensive for residents.

“There are a lot of unique solutions – I just don’t think jumping to a municipal broadband network should be the first one,” she said, adding that more than 200 communities nationwide currently offer municipal broadband, but only a small percentage of them have been successful.

In Holland, if the ballot measure passes, city residents will pay a millage of about $12.50 per month for building the system. Those who choose to connect would pay about $42 per month for service of 1 gigabit per second. The cost will depend on the “take rate,” in other words, how many people sign up. The more people who sign up for the service, the lower the cost will go.

Holland leaders are confident they will have the numbers needed to ensure success. The City and its Board of Public Works surveyed residents in 2018 and found that the vast majority of residents were in favor of a community-owned solution that provides high-speed internet access.

Morrison said demand for fiber connection in Holland’s existing downtown pilot project area has been strong. They have more than 200 customers in 150 buildings, he said.

The Covid pandemic and the lockdowns that followed brought the need for high-speed internet into sharp focus, he said.

“Everyone understands now the value of a good, reliable internet connection. We look at our very reliable utility that has been lowering electric rates, and say ‘We want (internet service) to be a utility just like water, sewer, or electricity.’ That’s what we want. We want to be in control of our own destiny. Not leave that up to a big telecom company.”

Government Matters: March 6-10 week in review

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Peters named Ranking Member on Senate subcommittee overseeing U.S. Coast Guard, NOAA

“Next to our people, the Great Lakes are Michigan’s most precious resource and play a central role in our state’s economy, environment, and way of life,” said Senator Peters.

“As Ranking Member of this subcommittee, I look forward to continuing my bipartisan work to protect and preserve the Great Lakes and strengthen our economy by advancing commercial shipping, fishing and tourism industries. These efforts take on a new urgency and importance in light of reports outlining President Trump’s proposed cuts to the Great Lakes Restoration Initiative, Coast Guard, National Oceanic and Atmospheric Administration (NOAA) and other important programs — cuts that pose a threat to our Great Lakes.”

NOAA provides research, information, and services to support decisions that affect recreation, the environment, public health and safety, and the economy of the Great Lakes. Their Office of Marine Sanctuaries manages the Thunder Bay National Marine Sanctuary to protect the unique history preserved by more than 100 discovered shipwrecks within the sanctuary while also maintaining responsible and sustainable recreational and commercial uses in the area.

As a member of the Senate Great Lakes Task Force and Committee on Commerce, Science and Transportation, Peters has made the protection and preservation of the Great Lakes a top priority. His efforts include:

  • Co-authored legislation that was signed into law to increase federal pipeline safety and oversight by designating the Great Lakes as a high consequence area, improving oil spill response plans to address ice cover and require critical reviews of pipeline age and integrity.
  • Worked to secure authorization for a new icebreaker in the Great Lakes as part of the Coast Guard Authorization Act of 2015. In the winter of 2014-15, ice cover on the Great Lakes contributed to an estimated 3.2 million ton decrease in cargo, costing nearly $355 million in lost revenue and 2,000 lost jobs.
  • Passed a provision requiring the USCG to conduct an assessment of oil spill response activities for cleanup in fresh water, especially under heavy ice cover.
  • Introduced the Great Lakes Fishery Research Authorization Act to provide better federal funding opportunities, update technologies and create new research projects to benefit the Great Lakes. Despite the size of the Great Lakes and the value of the fishery, the Great Lakes science program does not have the same funding authorizations as science centers on saltwater coasts.
  • Led delegation of Great Lakes Senators in urging Department of Transportation to take a leadership role in the implementation of a first-ever regional strategy for the Great Lakes-St. Lawrence maritime transportation system (MTS). Currently, the Great Lakes MTS is a major regional and national transportation asset, but is significantly under-utilized and operating at an estimated 50% of its full capacity.

Peters, colleagues urge Trump Administration to stop cuts to Coast Guard

Proposed 12 percent cut would severely restrict Coast Guard’s national, economic security operations on the Great Lakes

U.S. Senator Gary Peters (MI), Ranking Member of the Commerce Subcommittee overseeing the U.S. Coast Guard, helped lead a bipartisan group of 23 Senators in a letter urging Office of Management and Budget Administrator Mick Mulvaney not to make a $1.3 billion dollar cut to the budget of the U.S. Coast Guard.

According to reports, the FY 2018 Presidential Budget Request could amount to almost 12 percent of the service’s budget being cut. The U.S. Coast Guard plays a critical role in protecting our Northern border along the Great Lakes, conducting counter-terrorism patrols and law enforcement operations, and ensuring the smooth flow of goods on Great Lakes year round.

The Coast Guard is responsible for patrolling 721 miles of Michigan’s northern border to protect national security and combat drug and human trafficking. In Michigan, they operate a fleet of six cutters, three air stations and two Aids to Navigation teams that support critical ice-breaking operations, conduct search and rescue missions and provide navigation support to ships on the Great Lakes.

Senators Peters, Perdue reintroduce ‘No Hero Left Untreated Act’

U.S. Senators Gary Peters (D-MI) and David Perdue (R-GA) have reintroduced the No Hero Left Untreated Act to enhance medical care for America’s heroes. The bipartisan legislation would create a pilot program to test an innovative treatment called Magnetic e-Resonance Therapy for veterans to help treat post-traumatic stress disorder (PTSD), traumatic brain injury (TBI) and other mental health issues. Peters and Perdue are both members of the Senate Armed Services Committee, and Peters is a former Lt. Commander in the U.S. Navy Reserve.

Sen. Gary Peters

“Veterans suffering from the devastating effects of PTSD, traumatic brain injury and military sexual trauma deserve to have the best, most cutting-edge treatment available,”said Senator Peters, a former Lt. Commander in the U.S. Navy Reserve.

“Incorporating innovative new treatment options like Magnetic e-Resonance Therapy technology into VA medical centers has the potential to improve treatment for veterans and create meaningful change in their lives.”

The No Hero Left Untreated Act would establish a pilot program at two medical centers within the VA network and enroll up to 50 veterans in Magnetic EEG/ECG-Guided Resonance Therapy (MeRT) for a one-year period.

Huizenga testifies before Congress on Great Lakes economy

Congressman Bill Huizenga, Co-Chair of the U.S. House Great Lakes Task Force, testified before the House Appropriations Energy and Water Subcommittee on the importance of properly using funds collected in the Harbor Maintenance Trust Fund and water infrastructure across the Great Lakes. Congressman Huizenga discussed the strong bipartisan effort he has led to hold Washington accountable and make the federal government live up to its promise of dredging harbors across the Great Lakes. Huizenga also warned of the negative economic consequences including fewer jobs and fewer American products being exported should the federal government fail to live up to its obligation.

Peters urges FCC to protect Internet access for rural, high-poverty schools & libraries

U.S. Senator Gary Peters (D-MI) joined his colleagues in urging the Federal Communications Commission (FCC) to protect the E-Rate Program, which ensures the neediest schools and libraries — especially those in rural and high poverty areas — have affordable Internet access. The E-Rate Program has given students across Michigan access to modern teaching tools that expand their knowledge and prepare them to enter the 21st century workforce. FCC Chairman Ajit Pai’s recent decision to retract a report detailing the E-Rate Program’s success has stirred concern that the new Administration will not support the vital program.

“E-Rate helps schools and libraries in every state by supporting access to modern communications and the Internet. Such access is critical if we are a country that is serious about preparing and educating our children for the digital age,” the Senators wrote.

Peters joined U.S. Senators Richard Blumenthal (D-CT), Ed Markey (D-MA), Tom Udall (D-NM), Kirsten Gillibrand (D-NY), Tammy Baldwin (D-WI), Ron Wyden (D-OR), Cory Booker (D-NJ), Al Franken (D-MN), Jeffery Merkley (D-OR), Elizabeth Warren (D-MA), and Bob Casey (D-PA) in signing the letter.