Gigabit Communities Summit
Kansas City, Missouri
January 13, 2015
Seven Important Next Steps for
Gigabit Communities
Jim Baller
The Baller Herbst Stokes & Lide, PC
Washington, DC 20036
(202) 833-1144
[email protected]
Disclaimer
This presentation does not constitute legal advice
and should not be interpreted as such.
For advice on federal, state or local law, please
consult qualified legal counsel.
Overview
1. Protect Yourself from State Barriers to Entry
2. Comply With All Regulatory Requirements
3. Take Advantage of E-Rate and Other Funding Options
4. Use Innovative PPPs to Extend Your Services
5. Make Most of New Infrastructure Developments
6. Consider New Opportunities to Acquire Content
7. Break Into Multi-Tenant Buildings and Developments
1. Protect Yourself From State Barriers to Entry
• About 21 states currently have restrictions
• New barrier proposed in Missouri, others possible
• Barriers often follow first or significant fiber project
• New proposed barriers may affect PPPs – e.g. Kansas
• Chattanooga and Wilson proceedings before the FCC
• Please file comments!
• Join/Support Coalition for Local Internet Choice
(www.localnetchoice.org)
2. Comply With Regulatory Requirements
• Depending on services provided, GC’s must comply
with numerous federal and possibly State requirements
• BHSL Federal Communications Law Compliance Memo
• Key requirements:
• Universal Service Fund – up to 16.8% of end user
revenues at risk! Also, Enforcement Task Force
• CALEA
• Special Access Data Collection
• Privacy
•
3. Take Advantage of Funding Opportunities
• $7.2 Billion in Federal Broadband Stimulus funding no
longer available, but there are many other funding
opportunities
• Examples:
• FCC: Recently expanded E-Rate Program for Schools
and Libraries, Health Care Support, Connect America
Fund
• USDA Community Connect Broadband Grants
($100,000 -$3 million) (Feb 17, 2015)
• Department of Commerce economic development
grants
4. Consider Public-Private Partnerships
• Many private entities are eager to explore partnerships with
GC’s, creating opportunities to expand services, footprint
• PPPs come in many shapes and sizes
• Examples: Google/KC, Provo, Austin, etc.; CSpire/Mississippi Communities; UC2B/iTV3;
Macquarie/Kentucky; OnLight Aurora/City of Aurora, IL;
Ting/Westminster, MD
• Key issues:
• Impact of state laws (including special PPP laws)
• Allocation of financial obligations, risks, rewards
• Allocation of operating responsibilities
• Enforcement of commitments and remedies
• Exit strategies
5. Consider Potential Benefits of New
Developments Concerning Infrastructure
• Pole attachments
• Federal law provides access rights and rate protection
only to “telecommunications carriers” and “cable
television systems” – not to pure Internet access or
fiber providers Result: covered beneficiaries get
faster, cheaper make ready and far lower rates
• If FCC reclassifies Broadband Internet Access Service
as a Title II “telecommunications service,” providers
may qualify for pole attachment benefits
• Also new FCC rules on tower siting and wireless small
cells and distributed antenna systems – multiple impacts
6. Explore New Options For Access to Video
Programming and Other Content
• Today, fiber system operators acquire video content in 2
main ways: (1) for broadcast signals, enter into must
carry/retransmission consent agreements with broadcast
stations, and (2) for other video programming, contracts
with programming distributors via co-ops (NCTC), content
aggregators, or individual negotiations
• In STELAR, Congress recently expanded an FCC ban on
joint negotiations by broadcasters
• FCC currently considering giving non-cable systems
programming access rights
7. Break Into the Multi-tenant Market
• Multi-tenant buildings and developments often constitute
25-33% of a potential market – or even more
• Incumbent service providers often attempt to tie up multitenant environments through exclusive agreements of
various kinds – e.g., exclusive right to market, exclusive
right to provide service, exclusive use of inside wiring,
exclusive easements, take-or-pay bulk service
agreements, etc.
• The FCC has prohibited exclusive cable service
agreements and exclusive easements, but it has upheld
other forms of exclusivity
• State laws, including unfair competition laws, may help
Thanks!
Jim Baller
Baller Herbst Stokes & Lide, PC
2014 P Street, NW
Washington, DC 20036
(202) 833-1144
[email protected]