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