Friday, February 18, 2005

A victory, for this year

We in the Volunteer Hoosier community want to commend Greg Gapsis, ace reporter for The Evening News, who has devoted great energy to explaining the intricacies of pending telecommunications legislation in this year's Indiana General Assembly. Our correspondent, bluegill (Jeffrey M. Gillenwater) deserves all credit for bringing a lot of this to our attention.

You will remember that House Bill 1148 would have hamstrung local governments in creating broadband Internet service where the telcos would not provide it. For this year, anyway, that bill is dead. We're not aware of any similar bill before the Senate and Sen. Connie Sipes confirms that.

With permission, here is Gapsis's report from today's editions of The Evening News:

Broadband bill killed
By Greg Gapsis
Staff Writer

The Evening News www.news-tribune.net

A bill to impede the build out of local Internet access systems died in the House Local Government committee on Wednesday.

H.B. 1148, promoted by major telecommunications companies, would have raised barriers to local governments sponsoring or even assisting new ventures to bring modern communication infrastructure to their citizens.

The bill quickly gained opposition from a elected officials because of its chilling effect on economic development, public safety and health issues.

“It’s wonderful news,” said Charlestown Mayor Mike Hall.

“The bill would definitely have had a negative effects on us. It would have been fine if the big companies were willing to provide us with service. But when they chose not to, it seemed unfair that they were trying to handcuff us from trying to help ourselves.”

Charlestown started exploring a community wide Internet access system more than a year ago, saying it was essential to help retain current businesses and attract new ones.

When a request for proposals was issued, the city actively sought the involvement of companies like SBC Communications Indiana and Cinergy Communications, Inc., according to Hall.

“We went public and asked for proposals but they wouldn’t’ submit,” Hall said. “Their response was that our market was too small and it wouldn’t be profitable enough for them.”

The city ended up negotiating with a group to build and operate a wireless Internet access system using high fidelity radio transmissions from a series of towers. Such WiFi systems are seen as a cutting-edge, cost effective way to extend access without the expense of stringing wire or burying fiber optic cable.

While the proposal failed because of concerns about the city’s risk in financing the venture, the city council said it was still exploring a way to build a community system and passed a unanimous resolution opposing H.B. 1148.

“The bill would have ended up directing where economic development took place in the state,” Hall said. “It would have limited our ability to compete and shifted focus to only those areas the major telecoms were willing to service.”

Similar sentiments statewide allowed the Indiana Association of Cities and Towns to build a broad coalition in opposition to the legislation. IACT, a coalition of 468 cities and towns, joined with the Indiana Economic Development Association, the Indiana Municipal Electric Association and the Indiana Municipal Power Agency in testifying against the bill.

“Mayors across the state have begged service providers for broadband for years, only to be told that the market is not there,” said Andrea Johnson, an IACT spokeswoman in a statement. “IACT understands that businesses are in business to make money and does not fault them for that. Local government, however, is in the business of helping citizens achieve a high quality of life and providing infrastructure that meets the demands to support that quality of life.”

Numerous studies and many southern Indiana economic development organizations, including the Chamber of Commerce, Southern 7 Workforce Investment Board and Southern Indiana Economic Development Council, have identified broadband connections to the world wide web as essential for economic development.

This point was emphasized by IACT in its testimony before the house committee chaired by Rep. Phil Hinkle (R-Indianapolis).

“One of the first questions a municipal official is asked when discussing location with a prospective new member of the business community is about technology infrastructure, and broadband service in particular,” said IACT Executive Director Matthew Greller. “We are very pleased that this committee took appropriate action to stop this bill from moving forward.”

Similar sentiments were raised by Scottsburg Mayor Bill Graham when the bill was introduced. “Rural communities have been affected more greatly than urban areas by the downturn of the national economy,” Graham said. “It is a global world today and everyone has to be connected to be a player. It’s important for community development as well as economic development.”

Graham championed a county-wide, municipally-backed WiFi system when major providers said it would not be cost-effective to provide services. Scott County piggybacked on its publicly-owned electric utility company to install a dozen antennas at a cost of $390,000 to provide service to the entire county.

The investment helped keep some businesses from relocating, saved public agencies money and permits the county to be more competitive in attracting new ventures.

“The phones companies were charging $1,300 a month for T-1 lines that you could get for $350 a month in Louisville,” Graham said. “Our new system allows businesses to get comparable service for $200 a month and residents can sign up for service for only $30 a month.”

Graham said the venture has been successful since its roll out in the summer of 2004. “Under our business plan we were hoping for 100 customers to sign up in the first year,” Graham said. “Without any advertising, using only word of mouth, we already are pushing 600.”

Other community leaders also opposed the legislation because it would have limited the quality of training to which emergency personnel had access and the quality of service EMS, fire and police would ultimately be able to provide to communities they served.

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