Tag Archives: telecom

FCC’s Official Net Neutrality Decision Coming This Week

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On Thursday, the Federal Communications Commission (FCC) will decide whether to overturn the Obama-era net neutrality regulations that currently govern the internet. It is highly anticipated they will decide to return to the pre-2015 regulations.

Net neutrality implies an open internet environment that internet service providers should enable access to all content and applications regardless of the source, and without favoring or blocking particular products or web sites.

The 2015 net neutrality laws reclassified high-speed broadband as a public utility under Title II of the 1934 Communications Act rather than the 1996 Telecom Act. These regulations applied to both mobile and fixed broadband networks. The reclassification changed how government treats broadband service and gave the FCC increased controls over internet service providers.

The office of FCC Chairman Ajit Pai recently issued this Myth vs. Fact statement on returning to the pre-2015 regulations. One issue the public is concerned with is if internet providers would block or “throttle back” certain content to the public. Another is if content developers would pay internet providers for accelerated data transfer. The bigger issue is whether internet providers can operate their businesses as businesses rather than as a public utility. Data show that private investment in internet services has slowed under the post-2015 regulations.

The Indiana Chamber supports free-market competition in the delivery of advanced communications services. The competition in a free-market environment among industry service providers is consistent with providing choice to consumers and an adequate service of last resort in extended service areas.

The Chamber opposes any attempt to impose new regulations on broadband and other next-generation telecommunications services by the FCC, especially through the unilateral reclassification of such services under Title II of the Federal Communications Act.  The Indiana Chamber supports the U.S. Congress examining and deciding issues such as net neutrality. We believe that advanced communications and digital infrastructure are critical to long-term economic development. Since 2006, private companies have invested more than $1.5 billion in new broadband capacity in the state, expanding service to more than 100 Hoosier communities and creating 2,100 new jobs within the industry.

If the FCC rules to return to the pre-2015 regulations, it is expected that Congress will entertain legislation to promote some of the concepts of net neutrality and limit the ability to stifle content.

A Welcome Move: State’s Telecom Agreement With Agile Networks Denied

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The state’s controversial proposed lease of its cell phone towers, fiber and public rights of way to Ohio-based Agile Networks officially won’t happen.

Governor Eric Holcomb put an end to it in an announcement Thursday. The Indiana Chamber applauds his decision and had been advocating for such a resolution.

Funds from the proposed $50 million lease were earmarked for bicentennial construction projects, with the Agile agreement promoted as a way to bring greater connectivity to rural areas.

Beginning last September, after learning in more detail about the agreement, the Chamber voiced significant concerns and objections on behalf of the state’s telecommunications industry.

Chamber President and CEO Kevin Brinegar had numerous discussions with the Indiana Finance Authority and State Budget Committee members – the groups needing to approve the deal. The Chamber made a clear request that the agreement not proceed.

Therefore, we are very pleased that Gov. Eric Holcomb shared our belief that this deal was bad for Indiana.

In his statement, the Governor said: “I have asked the Office of Management and Budget to assess how best to move forward and to develop alternatives we might pursue. Enhancing broadband availability in rural parts of our state will be an important part of my consideration.”

The Chamber believes that’s the correct approach.

Our board-approved position supports free market competition in the delivery of advanced telecommunications services. Yet this deal went too far and essentially suppressed this important principle. Not to mention, good Hoosier companies inexplicably were not even given equal opportunity to bid for the project.

Additionally, all industry players and competing technologies should be on a level playing field. However, this proposed deal would have only served to pit the state against private providers.

Getting better broadband access to rural areas of the state should be a priority. That was unlikely to happen with the now-defunct deal, which would have done nothing to drive Agile Networks to serve our rural areas. The company’s publicized plans were to build in the state’s largest cities – Evansville, Fort Wayne and Indianapolis – where cable and broadband services and competitive choices already exist.

Looking ahead, the Chamber pledges to work with state government in any way it can to advance the effort to truly bring connectivity to rural parts of the state. These areas must be brought up to date technologically to help reverse their downward population and economic trends.

Tennessee Battles for Top Billing in Internet Speeds

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Hearing a dial-up computer tone today is a little like listening to the crackling sound of a phonograph from the early 20th century. It’s out of place and just a little creepy.

In Indiana, we’ve come a long way from the days of waiting for our computers to connect to the Internet. Some of the most rural areas now have access to broadband capabilities and advanced mobile services.

Much of that is due to the Telecom and Video Reform Act (HEA 1279) that the Indiana General Assembly passed and Gov. Mitch Daniels signed in 2006. The act deregulated the telecommunications industry and put Indiana on the map as a leader in expanding broadband services. The capabilities have also attracted investments from a number of entities.

Now, it looks like another quasi-Midwestern state is gaining attention in the world of broadband. Chattanooga’s city-owned electrical utility has started offering an Internet service that is among the fastest in the world.

The Chattanooga Electric Power Board’s new Fiber Optics network will provide a 1 gigabit-per-second Internet service. The utility said the service is more than 200 times faster than the average national download speed today.

At a cost of $350 a month, it’s also much more expensive than the typical residential plan. Harold DePriest, the Chattanooga Electric Power Board’s president and CEO, said residential customers don’t really need that fast a service, but businesses might.

He said the high-speed service won’t be costly for EPB to operate, yet it should put the Chattanooga community at the forefront of attracting businesses – possibly Internet providers – that can benefit from having it.

“Chattanooga represents the next frontier in communications technology, with limitless potential for new applications for education, entertainment, health care, industrial development, and more,” DePriest said in a statement.

The article goes on to quote Chattanooga Mayor Ron Littlefield saying the announcement has put the city “on the short list of progressive communities in the world.” A New York Times article says that only Hong Kong and a few other cities in the world offer such fast services and that Chattanooga will be the first in the United States to do so.

Fast, but not cheap. Would you pay $350 a month for this kind of capability?