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State Barriers to Public Power Entry into Broadband

State Barriers to Public Power Entry into Broadband. APPA National Conference June 21, 2005 Shelley Sahling-Zart Lincoln Electric System. “You may have to fight a battle more than once to win it.” Margaret Thatcher. Battle of 2001. Passed in May 2001.

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State Barriers to Public Power Entry into Broadband

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  1. State Barriers to Public Power Entry into Broadband APPA National Conference June 21, 2005 Shelley Sahling-Zart Lincoln Electric System

  2. “You may have to fight a battle more than once to win it.”Margaret Thatcher

  3. Battle of 2001 • Passed in May 2001. • Expressly prohibited any agency or political subdivision of the State from providing telecommunications services for a fee. • This prohibition was declared unconstitutional by the Nebraska Supreme Court in 2003.

  4. Battle of 2001 (cont.) • Allowed an agency or political subdivision of the State to lease dark fiber to a certificated telecommunications provider subject to certain onerous requirements. • Dark fiber lease rate must be approved by the Public Service Commission and it can be no less than the market rate.

  5. Battle of 2001 (cont.) • Difference between the political subdivision’s cost of fiber installation and the lease rate is split—50% to the political subdivision and 50% to the Nebraska Internet Enhancement Fund. • To date, one lease has been executed pursuant to this law.

  6. Battle of 2004 • U.S. Supreme Court rules in Missouri v. Nixon • “Any entity” in §253 of federal Telecommunications Act of 1996 does not include a State’s own political subdivisions and the states do have the ability to restrict such political subdivisions’ entry into the telecommunications arena • Telecommunications entities respond quickly

  7. Battle of 2004 (cont.) • Nebraska teleco’s seek to re-enact the prohibition previously passed by the Legislature in LB 827 and declared unconstitutional by the Nebraska Supreme Court with only 11 days remaining in the legislative session. • Teleco’s attempt to gut an unrelated legislative bill and replace it with the prohibition language was rejected by the Legislature.

  8. Battle of 2005 • Favorable legislation: • LB 136 • Allows cities & public power entities to provide utility functions using broadband over powerline (BPL) and to partner with third parties to provide BPL telecommunications • Introduced in anticipation of anti-BPL legislation from the teleco’s • LB 722 • Lighter version of LB 136

  9. Battle of 2005 (cont.) • Unfavorable legislation: • LB 645 • Prohibits public entities from providing: • Telecommunications services • Broadband services • Information services • Video services • Intended to permanentlyprohibit the deployment of BPL in Nebraska by anyone

  10. Battle of 2005 (cont.) • Different dynamics in 2005 • Majority of senators opposed to permanent ban on BPL • Widespread support for broad-based task force to study BPL and other telecom issues • Teleco’s opposed to task force • www.diodecom.net/nopublicentry/ • “Unplug” Public Entry! campaign

  11. Battle of 2005 (cont.) • “Compromise” between teleco’s and public power entities: • Ban on public power entities providing retail telecom services • Task force of 15 to complete comprehensive study by December 2006 • Moratorium on public power entities providing “wholesale” telecom until December 2007

  12. Battle of 2005 (cont.) • Issues to be studied include: • Impact of public telecom involvement on private sector investment • Need & necessity for public entry into telecom • “Level playing field” issues regarding regulation & taxation • Public power infrastructure and how it can be used to provide telecom services • Statutory & regulatory frameworks of other states that have allowed public entry

  13. What has changed? • Public power industry was united and engaged in 2005 • Several key senators in 2001 battle are no longer in body • Successes in other states and communities are more widely known • Many teleco’s have not delivered on promises to provide advanced services

  14. Battle Plan 1. Define your goal & strategy • Are you on offense or defense? • Is your goal increased revenue, improved community services, or something else? • Assess your strengths & weaknesses • Understand risks (political & financial) • Timing

  15. Battle Plan (cont.) 2. Research the opposition • Financial contributions • Services provided • Involvement in community • Assess strengths & weaknesses

  16. Battle Plan (cont.) 3. Do your homework • Be familiar with the rules & regulations • Know the technology • Articulate your position • Frame the issues • Be prepared for attacks on your core business

  17. Questions?

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