Keep North Carolina’s Broadband Market Free

While arguments over network neutrality have steadily misdirected attention toward Washington, phone and cable companies have quietly lobbied one state after another to throttle back or forbid cities, towns and small commercial and non-commercial entities from building out broadband facilities. This Community Broadband Preemption Map, from Community Broadband Networks, tells you how successful they've been so far: Now they're the verge of succeeding in North Carolina too.

This issue isn't just close to home for me. I lived in North Carolina for nearly two decades, and I have more blood relatives there than in any other state. (Not to mention countless friends.) Not one of them tells me how great their broadband is. More than a few complain about it. And I can guarantee that the complaints won't stop once the Governor signs the misleadingly-named "Level Playing Field/Local Gov't Competition act" (H129), which the cable industry has already been lobbied through the assembly.

The "free market" the phone and cable companies claim to operate in, and which they mostly occupy as a duopoly, is in fact a regulatory zoo where the biggest animals run the place. Neither half of the phone/cable duopoly has ever experienced anything close to a truly free market; but they sure know how to thrive in the highly regulated one they have — at the federal, state and local levels. Here's Ars on the matter:

    Let's be even clearer about what is at stake in this fight. Muni networks are providing locally based broadband infrastructures that leave cable and telco ISPs in the dust. Nearby Chattanooga, Tennessee'scity owned EPB Fiber Optics service now advertises 1,000Mbps. Wilson, North Carolina is home to the Greenlight Community Network, which offers pay TV, phone service, and as much as 100Mbps Internet to subscribers (the more typical package goes at 20Mbps). Several other North Carolina cities have followed suit, launching their own networks. In comparison, Time Warner's Road Runner plan advertises "blazing speeds" of 15Mbps max to Wilson area consumers. When asked why the cable company didn't offer more competitive throughput rates, its spokesperson told a technology newsletter back in 2009 that TWC didn't think anyone around there wanted faster service. When it comes to price per megabyte, GigaOm recently crunched some numbers and found out that North Carolina cities hold an amazing 7 of 10 spots on the "most expensive broadband in the US" list.

And here's what Wally Bowen and Tim Karr say in the News & Observer:

    North Carolina has a long tradition of self-help and self-reliance, from founding the nation's first public university to building Research Triangle Park. Befitting the state's rural heritage, North Carolinians routinely take self-help measures to foster economic growth and provide essential local services such as drinking water and electric power. Statesville built the state's first municipal power system in 1889, and over the years 50 North Carolina cities and towns followed suit. In 1936, the state's first rural electric cooperative was launched in Tarboro to serve Edgecombe and Martin counties. Today, 26 nonprofit electric networks serve more than 2.5 million North Carolinians in 93 counties. Strangely, this self-help tradition is under attack. The General Assembly just passed a bill to restrict municipalities from building and operating broadband Internet systems to attract industry and create local jobs. Although pushed by the cable and telephone lobby, similar bills were defeated in previous legislative sessions. But the influx of freshmen legislators and new leadership in both houses created an opening for the dubiously titled "Level Playing Field" bill (HB 129).

    No one disputes the importance of broadband access for economic growth and job creation. That's why five cities -- Wilson, Salisbury, Morganton, Davidson and Mooresville -- invoked their self-help traditions to build and operate broadband systems after years of neglect from for-profit providers, which focus their investments in more affluent and densely populated areas. Not coincidentally, all five cities own and operate their own power systems or have ties to nonprofit electric cooperatives. (While the bill does not outlaw these five municipal networks, it restricts their expansion and requires them to make annual tax payments to the state as if they were for-profit companies.) How does a state that values independence, self-reliance and economic prosperity allow absentee-owned corporations to pass a law essentially granting two industries -- cable and telephone -- the power to dictate North Carolina's broadband future? This question will be moot if Gov. Beverly Perdue exercises her veto power and sends this bill where it belongs: to the dustbin of history.

We don't need more laws restricting anything around Internet infrastructure build-outs in the U.S. That's the simple argument here.

We need the phone and cable companies to improve what they can, and we need to encourage and thank them for their good work. (As I sometimes do with Verizon FiOS, over which I am connected here in Massachusetts.)

We also need to recognize that the Internet is a utility and not just the third act (after phone and TV) in the "triple play" that phone and cable companies sell. The Net is more like roads, water, electricity and gas than like TV or telephony (both of which it subsumes). It's not just about "content" delivered from Hollywood to "consumers," or about a better way to do metered calls on the old Ma Bell model. It's about everything you can possibly do with a connection to the rest of the world. The fatter that connection, the more you can do, and the more business can do.

Cities and regions blessed with fat pipes to the Internet are ports on the ocean of bits that now comprise the networked world. If citizens can't get phone and cable companies to build out those ports, it's perfectly legitimate for those citizens to do it themselves. That's what municipal broadband build out is about, pure and simple. Would it be better to privatize those utilities eventually? Maybe. But in the meantime let's not hamstring the only outlet for enterprise these citizens have found.

Here's a simple fact for Governor Perdue to ponder: In the U.S. today, the leading innovators in Internet build-out are cities, not phone and cable companies. Look at Chatanooga and Lafayette — two red state cities that are doing an outstanding job of building infrastructure that attracts and supports new businesses of all kinds. Both are doing what no phone or cable companies are able or willing to do. And both are succeeding in spite of massive opposition by phone and cable companies.

The Internet is a rising tide that lifts all economic boats. At this stage in U.S. history, this fact seems to be fully motivating to enterprises mostly at the local level, and mostly in small cities. (Hi, Brett.) Their customers here are citizens who have direct and personal relationships with their cities and with actual or potential providers there, including the cities themselves. They want and need a level of Internet capacity that phone and cable companies (for whatever reason) are not yet giving them. These small cities provide good examples of The Market at work.

It isn't government that's competing with cable and phone companies here. Its people. Citizens.

No, these new build-outs are not perfect. None are, or can be. Often they're messy. But nothing about them requires intervention by the state. Especially so early in whatever game this will end up being.

I urge friends, relatives and readers in North Carolina to Call Governor Perdue at (800) 662-7952, and to send her emails at  governor.office at nc.gov. Tell her to veto this bill, and to keep North Carolina from turning pink or red on the map above. Tell her to keep the market for broadband as free as it's been from the beginning.