State resources either Abrams or Kemp can use to drive rural broadband in Georgia.

At first blush, the stances of the two candidates for Georgia on the issue of broadband deployment are pretty much standard fare.  Citing her responses to a questionnaire by the Georgia Chamber of Commerce Democratic Party candidate Stacey Abrams describes broadband an essential business service.  To boost the economy of rural Georgia, Ms. Abrams mentions her support for the Georgia Department of Transportation’s efforts to expand broadband along the state’s rights-of-way.

Ms. Abrams is referring to the Georgia Department of Transportation’s Georgia Interstate and Wireless Broadband Deployment P3 Project.  The primary goal of GDOT’s broadband project is statewide expansion of GDOT’s NaviGAtor traffic management system.  GDOT considers NaviGAtor as a first step toward bringing broadband to more of the state’s citizens.  GDOT states that by recycling its assets i.e. state rights-of-way, GDOT can accomplish the mission without any additional tax revenues. Once private partners are on board, the project is slated to take 25 years to design construct, and deploy the fiber optic cable and small cell network along 1,300 miles of state rights-of-way.

Republican Party candidate Brian Kemp echoes Ms. Abrams sentiments about broadband being a game changer for rural Georgia.  While not citing GDOT’s NaviGAtor, Mr. Kemp cites similar benefits offered by the state’s program including eliminating fees for use of state rights-of-way; exploring tax incentives for tech companies and entrepreneurs  committed to expanding high-speed internet access in rural Georgia, and incentivizing public/private partnerships with the use of low interest loans.

Rural broadband deployment has moved further to the front of the national policy agenda line.  Federal Communications Commission chairman Ajit Pai, himself a native of rural Kansas, has been touting closing the rural digital divide since joining the FCC.

Georgia, according to the website BroadbandNow, is America’s 20th most connected state, but has some work to do when it comes to increasing the availability of alternatives for 1.4 million residents who have access to only one wired provider. Approximately 870,000 Georgia residents do not have access to a wired connection with at least 25 megabits per second download speeds.

Georgia has already taken steps to help bring more broadband networks to its citizens. In addition to GDOT’s NaviGAtor traffic management system, the state’s Department of Community Affairs is required to develop the Georgia Broadband Deployment Initiative,  a program that provides for funding for the purpose of delivering broadband to unserved areas.  Money is to be spent on capital expenses and expenses directly related to the purchase or lease of property or to communications services or facilities. Through the funding of qualified political subdivisions i.e. cities, counties, etc., Georgia hopes to promote trade, commerce, investment, and employment opportunities.

An additional state resource that Georgia can use to close its rural broadband divide is the OneGeorgia Authority.  OneGeorgia, with the use of two funds, provides financing for rural areas committed to developing their economies.  By law, Georgia’s governor serves as OneGeorgia’s chairman, putting either Ms. Abrams or Mr. Kemp in a power position to drive rural Georgia’s broadband deployment in particular and the state’s economic growth overall.

 

 

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The likelihood of net neutrality being codified in statute looks dim…

Republicans in the U.S. House and U.S. Senate have been pushing for legislation that codifies net neutrality principles, making them a part of federal law.  Even with control of both chambers of the U.S. Congress, Republicans have not been able to convince enough Democratic members of Congress to get on board with passing a law that would avoid the back and forth pendulum between promulgating and repealing net neutrality rules on the agency level at the Federal Communications Commission.

Last spring, 52 U.S. Senators, including three Republicans, voted to reinstate net neutrality rules that were repealed in December 2017 by FCC chairman Ajit Pai’s Restoring Internet Freedom Order.  Mr. Pai’s treatment of net neutrality keeps the emphasis on one of the open internet’s four principles, transparency but leaves the other three principles; throttling, paid prioritization, and blocking, up to the “network effect”, where broadband access providers argue that discouraging use of the internet by blocking, throttling, or discriminating between carriers would lead to a devaluation of their networks, thus an illogical approach to take.

GOP control of the House is under threat this November.  If election sentiment carries over into the midterms, it is likely that the Democratic Party will capture the House.  Rasmussen Reports found that 47% of likely voters in the United States’ midterm elections are likely to vote for the Democratic Party while 42% of likely voters may cast their ballots for the Republican Party.

In the U.S. Senate, Republicans hold 51 seats while the Democrats hold 47 seats. Two independents, Angus King of Maine and Bernie Sanders of Vermont, caucus with the Democrats.  The Democrats need at least four seats to regain control of the Senate.

In the U.S. House, Republicans hold 236 seats to the Democrats 193.  Democrats need to pick up at least 25 seats to garner a House majority.

Will Democrats run on net neutrality as an issue? Based in polling from Pew Research, net neutrality is likely not an issue to grab the eardrums of voters.  For all voters, economic issues overall took first place, according Pew’s poll.  When broken down, the top six issues were:

  1. Immigration
  2. Health care
  3. Education
  4. Politicians/Government systems
  5. Guns/gun control/gun laws
  6. Economy/economic issues

For Democrats, while the top three overall issues for all voters were also a part of the Democrats of top three issues, gun control, politicians and government systems, and jobs rounded out the bottom three of their top six concerns.

House Democrats are aligning with their base’s apparent lack of priority for net neutrality.  Looking at a sample of 102 House Democrat websites, only four (3.9%) of those sites mentioned net neutrality, the open internet, or internet freedom as a key issue.

The low priority given to net neutrality this campaign season by voters and House Democrats tells me that Democrats will be in no hurry to join Republicans in drafting a bipartisan net neutrality bill.

 

NAFTA negotiations provides Trump an opportunity to force Congress’ hand on net neutrality and privacy legislation

The North American Free Trade Agreement went into effect 1 January 1994, a full two years before President Bill Clinton would sign the Telecommunications Act of 1996 and almost a decade before law school professor Tim Wu would pen the essay that set the concept of net neutrality into motion. It doesn’t come to me as a surprise that issues such as equal treatment of data over networks or the privacy of subscriber data were not huge ones back then.

From the early 1980s through the mid-1990s, the policy priorities included universal service and promoting competition in local markets while increasing telephone subscribership among low income, black, and Hispanic communities. Talking about the internet in the mid-1990s was synonymous to Natasha Romanova whispering to Steve Rogers about the existence of The Winter Soldier, something that may be real, but we just don’t know.

But by 1995, the whispers were becoming clearer to industry and Congress that the internet and high-speed broadband access to an increasingly global inter-network of computers provided investment opportunities for capital while increasing the speed and efficiency in moving the most important resource: information.

Over the last fifteen years, American telecommunications markets have had to contend with the back and forth threats of an additional regulatory overlay in the form of net neutrality rules. Attempts to codify net neutrality, the principle that broadband access providers should be transparent about their management practices while not discriminating against non-affiliated traffic, and allowing subscribers to access content of their choice, has become very politicized over the past three years. In 2015, a Democrat-led Federal Communications Commission passed net neutrality rules that were repealed two years later by the current Republican-led Commission.

And while Democrats in the U.S. Senate were able to persuade enough Republicans to pass a resolution to repeal the Commission’s transparency rules and replace them with the 2015 rules, the likelihood of passage of the resolution by the U.S. House is impossible because it is currently controlled by the GOP.

The political reality is that subscriber concerns about accessing content of their choice as well as maintaining the privacy of the data that they buy and sell is important to maintaining the internet and broadband as attractive communications tools. The Trump administration has an opportunity to head off an international net neutrality debate by including language that encapsulates net neutrality principles while reiterating the importance of protecting privacy on both sides of the border with Canada and Mexico.

An additional benefit of putting privacy and net neutrality language in Chapter 13 is that it will force Congress’ hand during the ratification process. It would be inconsistent for the United States to approve language in a treaty that incorporates privacy protections and net neutrality principles for international data trade while not recognizing those principles in its national laws. This level of certainty in American and international law will provide a great benefit for investors.