Critical Broadband Policy Issues: National & MN

BROADBAND POLICYSTATE AND FEDERAL

JoAnne JohnsonU-reka Broadband Ventures

10/12/2011

State - Federal Topics of the Day

• Federal– Net Neutrality– Online Sales Tax– USF/ICC Reform

• State– Access Charge Reform/Deregulation– Statewide Video Franchising– Broadband Access and Adoption

Federal – Net Neutrality

• Long awaited rules finally published in the Federal Register

• Lawsuits filed by opposite sides• 6 suits assigned to District of Columbia

• Congressional Action possible• Blackburn House bill supported by

Sen. Hutchison in Committee

Federal – Online Sales Tax• CA changed their law and now

will require online sales to pay sales tax for in state transactions• Called the Amazon law• Amazon and retailers are

joining forces to get a national law in place rather than state specific rules

Federal – USF/ICC• Why do you care??• Universal Service supports rural

voice providers, who are usually the rural broadband providers

• Likely to determine which unserved and underserved areas get access, whether it’s wireline or wireless, how fast and how soon

Telco RevenueSources

USFRes LineIntrastate ICCInterstate ICCSLC

• ABC, Rural ROR-RLECs, Chairman

For

• Everyone else-Cable, some Rural companies, consumer activists, state commissions

Against

• Commission open meeting October 27Next

Who’s For, Against

High Points

• $4.5 B currently in fund (cap or target) • $2.2B for Price Cap, $2B for ROR, $300M

for wireless• One provider funded, market driven

(reverse auctions, lower ROR)• ICC will happen over several years, USF

will begin 2012 (unless there are lawsuits)

STATE ISSUES ARE INTERCONNECTED

What the Neighbors Did

State Video (Statewide Franchising)

Telecom (Deregulation)

Indiana 2006 2006

Iowa 2007 2004

Wisconsin 2007 2011

Illinois 2007 2010

Michigan 2006 2011

Ohio 2007 2010

Legislative Actions

Poss

ible

Tra

ck

Telco Deregulatio

n

Learn to Incent rather than Regulate

Video Franchising

Increasing Competition, Promoting Broadband, Making a Difference?

Likely to Happen?• AT&T bill dies but

another takes its place

• Lacks a Champion

• Largely unknown capacity for leadership in the Legislature and Administration

• Telco Deregulation

• Video Franchised Statewide

• Broadband Incentives, Programs, Improvements

Case Study• Broadband Task Force(s)– Ultra High Speed

• Had time, support

– 2010 Mistakes • No time, no support, no

interest

– 2011 Future Task Force• Opposite situation from

2010 would be hopeful and helpful

– The moral of the story

Summary

• Understand the challenges– Technological– Regulatory, Legislative, Financial

• Set realistic expectations– See where the Feds take us– Broadband needs a voice

• Keep your eye on the goal– Get more people online, faster and doing more

QUESTIONS?

Jjohnson@u-rekabroadband.com612-229-7173