Connecticut Muni-Gain Bill Heads to Senate Floor Amid Frontier Opposition

A Connecticut bill to resolve a long-standing fight about municipal broadband is headed to the Senate floor. SB-846 got wide support from the Joint Finance Committee, which voted 42-6 Tuesday. It clarifies local governments may use a reserved space on poles called the “municipal gain” for municipal broadband. Frontier Communications claims the bill would stunt broadband growth.

Vermont legislators Wednesday advanced a wide-ranging measure to expand broadband through increased state funding, pole-attachment regulations and public-private partnerships. The Texas Senate planned to have voted later Wednesday on concurring with House amendments to a bill allowing electric co-op broadband (see 1903200032). Arkansas Gov. Asa Hutchinson (R) released a state broadband plan Wednesday.

The Connecticut bill aims to clarify a much-disputed law saying the municipal gain may be used for “any purpose.” The Public Utilities Regulatory Authority (PURA) agreed with telecom companies interpreting that to exclude municipal broadband, prompting a lawsuit by local governments and the Connecticut Office of Consumer Counsel in Connecticut Superior Court (see 1812100006).

Connecticut lawmakers tabled the bill for a full Senate vote. SB-846 would also need a House vote before the session ends June 5, then signature from Gov. Ned Lamont (D). While the bill got “overwhelming support” in the Finance Committee, “we know there are concerns about it, and the municipalities are working hard on it,” emailed Connecticut Consumer Counsel Elin Swanson Katz.

“This legislation seeks to circumvent” PURA authority and the agency’s efforts to ensure broadband competition in Connecticut, a Frontier spokesperson emailed. PURA reached the correct result last year “after an extensive and protracted proceeding, in which all parties were well represented,” she said. The FCC’s national broadband map shows Connecticut “at the top of the list in terms of broadband availability,” with more than 98 percent of the state population having access to at least 50 Mbps, she said. The agency didn’t comment.

Let the state court decide the appeal “without legislative action,” emailed New England Cable and Telecommunications Association General Counsel Timothy Wilkerson. NECTA “opposes any legislative attempt to disrupt the work of Connecticut’s subject matter experts at PURA on the Municipal Gain. PURA’s recent decision was the culmination of three separate dockets on the meaning of the statute spanning two years that included wide participation by all affected entities.”

Other States

The Vermont Senate Appropriations and Finance committees supported a broadband bill (HB-513) that increases the state USF surcharge to 2 percent of revenue from 1.5 percent today, with the additional money to go to a new Connectivity Fund supporting broadband with 25/3 Mbps speeds. USF surcharges would apply to prepaid wireless retail sales.

The bill would make a one-time general fund transfer of $955,000 to the Connectivity Fund, including $700,000 for broadband grants. It would let municipalities enter public-private partnerships to provide broadband if the muni first issues a request for proposals seeking an ISP to serve the unserved or underserved location. The legislation would order a study on using electric facilities to provide broadband.

The bill would order the Public Utility Commission to adopt one-touch, make-ready for pole attachments and other measures to minimize delays and costs and to quickly resolve disputes. The PUC would have to file a final proposed rule with the legislature and the secretary of state by Dec. 1.

“Reaching the last mile will require a grassroots approach that is founded on input from and support of local communities, whose residents are best situated to decide which broadband solution fits their needs,” said legislative findings in HB-513. “Existing Internet service providers are not providing adequate service to many rural areas where fewer potential customers reduce the profitability necessary to justify system expansion.”

Consolidated Communications "supports rural broadband expansion and language in HB-513 that encourages the provision of internet service to extreme last-mile locations without services today,” said Vice President-Regulatory Mike Shultz in a statement to us. Consolidated, which acquired FairPoint Communications, “continues to have active discussions with local communities and municipalities around broadband needs, public-private partnerships and other creative solutions to provide services” as the carrier invests in broadband across Vermont, he said.

The Texas House voted 139-0 Tuesday for an amended electric co-op broadband bill. Senators previously voted 30-1 to pass SB-14. The House voted 127-14 the same day to concur with Senate amendments to HB-1960, which would create a governor’s broadband council to study unserved and underserved areas, identifying barriers and solutions to expanding broadband access (see 1903250062).

Arkansas

Arkansas communities with more than 500 residents should have 25/3 Mbps broadband by 2022, said Hutchinson’s broadband plan. The Republican earlier this year signed a bill lifting a state ban on municipal broadband (see 1902260033).

While the state has many ISPs, “most Arkansans have far fewer options for high-speed internet, and many have one or none,” the plan said. “The broadband business is far from perfectly competitive, and the concept of natural monopoly is relevant to some aspects of the space, especially the utility pole networks that deliver most DSL, cable, and fiber connectivity to homes and businesses. However, broadband service in general does not look like a natural monopoly business.”

The plan suggests state government fully tap federal programs; make smart and fair regulations to encourage deployment and competition; revamp governance of state-owned assets including dark fiber, towers and public right of way so companies and other nongovernmental organizations can use them for broadband; educate the public about broadband’s value; market broadband progress to businesses to encourage investment; and explore all ways to make broadband affordable. It discusses limitations of broadband maps (see 1905150048) and details plans for a state broadband office. The state considered recommendations of the FCC Broadband Deployment Advisory Committee, the plan said.

“Arkansas's bold vision for broadband expansion is a step in the right direction, as is the new state law that reduces, but does not eliminate, the barriers to community broadband,” emailed CTC Technology and Energy President Joanne Hovis. “Local communities should be able to choose to invest in themselves or partner with the private sector toward better broadband outcomes.” Recent Arkansas moves show “broadband is not a partisan issue at the state or local level,” she added.

“Arkansas is taking baby steps in the right direction,” emailed Institute for Local Self-Reliance Director-Community Broadband Networks Christopher Mitchell. “The formation of a task force is often designed to get elected officials credit for taking action but they have rarely resulted in more investment.”

"It’s the most thorough state broadband report I’ve come across and is filled with useful data," emailed BDAC member Brent Skorup of the Mercatus Center, who the report's drafters consulted for the Arkansas plan. "I’m glad that governors and legislators around the country are prioritizing broadband deployment and competition because there are many difficult issues that need study and lawmaker attention."