In an effort to realize the full potential of broadband, the Center for Digital Democracy is launching a new project designed to stimulate citizen participation in the broadband revolution at the local level. Our task is to ensure that broadband serves citizenship as well as salesmanship, culture as well as commerce. By working together at the local level, we have the opportunity to shape our digital destiny.
If you listen to the debates inside the beltway about broadband deployment, you might believe that the only parties involved are major media companies and a handful of consumer groups. And you'd be right - in Washington, DC. But in reality there are efforts going on all over the country, in fact all over the world, that aim to influence the shape and character of high-speed communications in very different ways. And you might be surprised to learn that many of these efforts are not simply focused on bottom lines and business plans. Instead, these efforts are being undertaken by individuals, community groups, nonprofits and local municipalities, and focus on the public interest benefits of the next generation Internet.
From municipal-owned broadband networks, to ad-hoc wireless access points, to community technology projects, there are grassroots efforts underway everywhere to harness the potential of high-speed communications for public purposes. These efforts are rooted in a broader vision for the Internet than the highly centralized and controlled model being espoused by major media companies. Instead, they share the spirit of community and public good that characterized the growth of the original dial-up Internet as an open communications platform supporting a diversity of content and applications.
To be sure, the news out of Washington is often dire when it comes to broadband. The FCC has made rulings that threaten to eliminate the diversity of service options that to-date has characterized the dial-up Internet, instead handing control over to a few cable and telephone media giants. Congress seems willing to follow suit, and the Bush administration continues to pay little to no attention to public interest concerns about the process. Still, the battle is not lost. While Washington is wooed by big money and empty promises, local communities are taking charge in the fight to preserve an open and nondiscriminatory high-speed Internet.
Such grassroots efforts can play a critical role in a multi-pronged resistance to big media's attempted takeover of the Internet. Yet so often the success of these projects goes unsung. Therefore, CDD offers the following collection of resources detailing just what's being done to preserve the public interest in the broadband Internet. Our hope is to provide models that can be adapted by other communities, while at the same time giving a face to the sorts of projects that may be threatened by the heavy handed strategies being deployed by large media companies.
If you have stories or links that you think should be added here, please send them to us through the Share Your Stories page.
Grand Rapids Community Media Center
http://www.grcmc.org/
Local CMC dedicated to "building community through media, including facilitation of free high-speed Internet access."Minnesota Council of Nonprofits: Nonprofit Broadband Initiative
http://www.mncn.org/broadband.htm
Minnesota organization promoting development of broadband applications for nonprofit use.Community Broadband Workforce
http://216.194.92.236/CBW/index.html
Professional services organization designed to "help communities and regions 'Bridge the Digital Divide,' and achieve economic growth and job creation benefits from the Internet Economy."
King County I-Net
http://www.metrokc.gov/dias/its/i-net/
Fiber optic network carrying data, voice and video for public facilities in King County, Washington (Seattle), including schools, government agencies, public safety agencies, courts, public health facilities.Pittsburgh I-Net
http://www.pgh-inet.org/
Serving schools, libraries, non-profit organizations and local government agencies.Arlington County I-Net
http://www.co.arlington.va.us/dts/e-town/Arlington%20County%20Institutional%20Network%20(INET)_files/frame.htm#slide0001.htmGreater Austin Area Telecommunications Network
http://www.gaatn.org/
Austin Texas institutional network built by a partnership of gvernment entities and universities.
http://www.gslis.utexas.edu/~quinn/GAATN.html Greater Boston Broadband Network
http://www.bnntv.org/gbbn/
Led by University of Mass with many partners.
http://www.cpcs.umb.edu/VISTA/gbbn.pdf Mt Hood Area Institutional Network
http://www.purveyor.com/pdxinet.htm
Serving Public, Educational, and Government Users with alternative high speed digital video, voice, and data services.City of Tucson Institutional Network
http://www.ci.tucson.az.us/it/transfer.html
http://www.ci.tucson.az.us/it/inetplan.html#exec http://www.ci.tucson.az.us/it/inet2.html Cable Franchise Renewals
http://www.buskegroup.com/Outcomes_of_Recent_Cable_Franchise_Renewals__2002__v.3_.pdf
iProvo
http://www.iprovo.net/
Municipal broadband network under construction in Provo, Utah.
http://www.sltrib.com/2003/Jul/07032003/business/72088.asp Glasgow EPB HomeLAN
http://www.glasgow-ky.com/lan/
Service of Glasgow, Kentucky Electric Plant Board offering cable television and high-speed Internet access to local residents.Canarie Inc.
http://www.canarie.ca/
Canadian national organization that promotes broadband network and application deployment.Internet2
http://www.internet2.edu/
Government/university/industry partnership to develop next-generation broadband network for research and eventual public use.Link Michigan Project
http://www.michigan.gov/treasury/0,1607,7-121-1750_19156_24979-69316--,00.html
Project of the Michigan Department of Treasury intended to boost broadband deployment in the state.
Community Broadband Networks
http://communityfiber.blogspot.com/
A blog site devoted to news about community broadband networks.FreeNetworks.org
http://www.freenetworks.org/
Listserve promoting open spectrum policy that facilitates development of wireless networking technology.Wi-Fi Networking News
http://wifinetnews.com/
Daily news digest site covering wi-fi and technical standards.BroadbandReports.com – Broadband Politics and Legislation Forum
http://www.dslreports.com/forum/remark,6502431~root=politics~start=22~mode=flatAnalysys
http://www.analysys.com/default_acl.asp?Mode=article&iLeftArticle=1071&m=&n=
Survey of state broadband inititiativesNational Regulatory Research Institute
http://www.nrri.ohio-state.edu/programs/telcom/broadbandquery.php
Database of community connectivity info.American Public Power Association: Community Broadband
http://www.appanet.org/legislativeregulatory/broadband/index.cfm
Power provider assocaition providing information on public broadband infrastructure projects.
NYCWireless
http://www.nycwireless.net/
Organization providing free public wireless Internet service to users in public spaces throughout the New York City metro area.Seattle Wireless
http://www.seattlewireless.net/
Nonprofit organization working to develop a free wireless broadband Community Wireless Network (CWN) in the Seattle region.Bay Area Wireless Users Group
http://www.bawug.org/
Nonprofit promoting wireless use in the Greater San Francisco Bay Area, including the Bay Area Research Wireless Network.
http://www.svbizink.com/headlines/article.asp?aid=4825&iid=311 Portland Personal Telco Project
http://www.personaltelco.net/static/
Nonprofit organization promoting wireless community networks in Portland, Ore.NoCatNet
http://nocat.net/
Nonprofit organization working to build a community supported 802.11b wireless network in Sonoma County, CA.Boingo Wireless
http://www.boingo.com/
National broadband wireless service being offered in a variety of locations, including airports, hotels and cafes.
Choice. Competition. Diversity. Equal Opportunity. Free Expression. Equitable Access. Self-Determination. These are among the basic values that must govern our communications systems in the digital age. The digital media environment must accommodate a competitive array of commercial and noncommercial services that meet citizen and community needs, reflect our diverse society, and ensure that all of us share in the abundance that the digital revolution has brought forth. While there will always be room for a growing range of products and services designed to tap the commercial potential of telecommunications (everything from long-distance calling plans to premium cable channels), these must be offered in a fair and equitable manner.
Above all, as traditional communications systems converge onto a unified broadband network, communities should have a voice in how that network is constructed and operated. Citizens and local governments have the right to, and indeed must participate in the decision-making process to determine how essential communications resources (including production, transmission, and access to facilities and services) can best serve public needs. Specific strategies may differ from community to community, but the principles that guide open, diverse and democratic media are likely to remain the same. A "Declaration of Digital Democracy," then, includes the following ten citizen rights:
The broadband revolution--still in its infancy but offering the potential for a new, more democratic media system--has arrived. Roughly a third of all US homes connected to the Internet now enjoy high-speed access, and that number is growing daily. So, too, are the speeds at which users connect to the Internet increasing, although we have yet to see the kinds of robust residential networks (operating at 10 megabits per second and above) that will readily permit multimedia material to flow in both directions. But in order for that potential to be realized, community leaders, media activists, and representatives of the nonprofit sector must become more actively engaged in the broadband build-out process. Without question, the new high-speed networks are headed our way, but whether they simply deliver more of the same conglomerate culture, or whether they open new opportunities for civic discourse and cultural expression, will depend on the actions that communities take today.
In an effort to foster a collective envisioning of this new, more participatory communications environment, one that accommodates a full range of civic, educational, and cultural expression, the Center for Digital Democracy has launched its Digital Destiny Campaign. Combining activism at the local level with a range of informative online resources, the campaign provides the tools that communities need to harness the power of broadband--via cable, DSL, or wireless networks, and including digital television--with content, applications, and services that reflect the diversity of our culture rather than the marketing formulas of a handful of conglomerates.
Given the tight control over broadband networks wielded by cable and phone company monopolies, unfortunately, there is no guarantee that any of the new online resources will extend beyond the usual market-driven fare. However dazzling on-demand entertainment, sports, and gaming might be, we need to ensure the availability of public-interest online programming as well, including content produced by individuals and community groups themselves. Just as we have set aside space in the natural environment for public parks and beaches, and just as we have designated portions of the broadcast spectrum for noncommercial and educational use, so must we ensure that the new broadband infrastructure similarly accommodates applications and content designed to meet civic, social, and cultural needs. Communities must be informed of the public-interest options they should have in the new broadband marketplace, and encouraged to take part in the decision-making process surrounding the deployment of broadband and digital television platforms.
The Digital Destiny project addresses this need in six distinct ways:
Broadband Assessment: Surveying the existing and emerging new-media infrastructure (cable, DSL, wireless, and digital TV) to determine the prospects for public-interest, noncommercial, and minority programming.
Citizen Access: Exploring existing opportunities for access to facilities and training, highlighting those projects and organizations that promote media democracy, and working to expand access to the new digital tools of media production and distribution.
Policy Engagement: Fostering citizen and community involvement in the regulatory and policy making process that will define the ground rules of broadband deployment.
Collaboration: Taking stock of existing public-service programming projects, and exploring opportunities to pool these resources in a new "information commons."
Support Structures: Promoting public, private, and in-kind support of noncommercial broadband content and delivery.
Diversity of Viewpoint: Analyzing the local media landscape--who owns what?--and assessing opportunities for minority, independent, and alternative voices to be heard.
With the widespread deployment of high-speed networks, the broadband revolution is underway. In the process, there will be any number of efforts to exploit the commercial potential of the high-speed Internet. Our task is to ensure that broadband serves as effectively as it sells, fostering two-way, interactive applications. By working together at the local level, assessing the broadband infrastructure for its potential to serve the public interest, and building new alliances to ensure such service, we have the opportunity to shape our digital destiny.
Surveying the existing and emerging new-media infrastructure (cable, DSL, wireless, and digital TV) to determine the prospects for public-interest, noncommercial, and minority programming.
The technical specifications can be daunting initially, but the basic contours of the broadband landscape (featuring fast, always-on connections that facilitate the delivery of a wide range of multimedia content) can be grasped fairly quickly. Invariably, the various digital platforms are capable of delivering much more than they currently offer--five channels or more of simultaneous programing by a single DTV station, for example, or high-speed institutional networks (I-nets) linking municipal agencies and community organizations. Once we grasp the vast dimensions of the broadband revolution, and the potential of new technologies therein to serve community as well as purely commercial interests, we will be able to define a new generation of public-service programing--everything from expanded PEG (public, government, and government) access channels to public-access streaming-media servers for all manner of noncommercial expression. CDD has prepared some basic material on the broadband revolution, including
Exploring existing opportunities for access to facilities and training, highlighting those projects and organizations that promote media democracy, and working to expand access to the new digital tools of media production and distribution.
Especially as the broadband revolution creates a new version of the digital divide--separating those with premium service who travel in the fast lanes of telecommunications from those who remain stuck in the Internet's dial-up on-ramps--it will be important to nurture and celebrate those organizations and projects striving to share more broadly some of the wealth of the new-media technologies. Among the model public access projects around the country, ranging from PEG operations to online communities to service organizations, are the following:
Additionally, CDD's resource page on the Broadband Regulatory Environment offers links to sources of information on the rules that govern the deployment of high-speed networks.
Fostering citizen and community involvement in the regulatory and policy making process that will define the groundrules of broadband deployment.
The following organizations and sites provide useful information, examples, and ideas concerning the management of telecomunications resources in the public interest:
A number of states and localities, moreover, have adopted various telecommunications bill-of-rights ordinances in an effort to ensure equitable citizen access to the evolving broadband environment. Examples of such regulations include Montgomery County, Maryland's proposed cable consumer protections (downloadable Word document), New Jersey's redefinition of acceptable cable standards (press release), Seattle's Cable Customer Bill of Rights, and California's Telecommunications Bill of Rights (downloadable Word document).
Collaboration: Taking stock of existing public-service programming projects, and exploring opportunities to pool these resources in a new "information commons."
While there is no shortage of valuable noncommercial programming online, these sites tend to be overshadowed by far larger (and far more heavily cross-promoted) commercial ventures. Even within the commercial marketplace itself, a handful of new-media titans hold sway (with the top 3 web properties in the US, for example, attracting more traffic than the next 17 combined), and that's not likely to change as the cable and telco giants tighten their grip on broadband delivery. But as CDD's Dot-Commons Tour suggests, many of the components of an online civic sector are already in place. We need now to weave together these various strands of e-democracy and e-culture, fashioning a public-interest corollary, in effect, to the private-interest cartels that dominate the media today. Here is a small sampling of organizations engaged in collaborative online projects:
Promoting public, private, and in-kind support of noncommercial broadband content and delivery.
Although there has been a lot of talk of e-philanthropy and online fundraising, the philanthropic community in general has been as tardy as most other parts of the nonprofit sector in coming to grips with all of the political, social, economic, and cultural implications of the Internet. Meanwhile, even though the public sector traditionally contributes only a fraction of philanthropy's total largesse (and even though government funding is always subject to periodic cutbacks and partisan squabbles), as the list below suggests governments at all levels have played an important role in supporting public-interest networking activities:
Analyzing the local media landscape--who owns what?--and assessing opportunities for minority, independent, and alternative voices to be heard.
In addition to CDD's Media Ownership pages, the following online resources offer a wealth of information on the media ownership issue, helping to establish a context for citizen assessment of the local media outlets that purport to serve their needs:
1. Understanding Cable
Nationally, about seven of every ten households subscribe to cable, and that platform has emerged as the leading provider of high-speed Internet connections. Cable is also in the process of transforming itself from a one-way delivery system for video programming into a multifaceted telecommunications provider, using digital technologies to provide a range of new services, including video on demand, two-way conferencing, and telephony. But before we can hope to harness this power for public interest programming and applications, it is necessary to understand better how cable currently works and where it is headed. A good place to start is Andrew Afflerbach's Technical Background presentation (22mb PowerPoint file), prepared for a USC symposium on the future of cable in Los Angeles.
2. Exploring PEG Resources
At the heart of community-based public service media is the requirement that cable operators accommodate public-, education-, and government- (PEG) access channels. Most communities have one or more of these stations (PEGchannels.com maintains a list of station websites), and many of them offer opportunities for citizen involvement. Sue Buske presented an overview of innovative PEG practices (450kb PowerPoint) at the aforementioned USC symposium, demonstrating how communities have successfully transformed their channel allotments into broadband community resources. Outstanding PEG channels include the Chicago Access Network, Iowa's Public Access TV 18, and the Manhattan Neighborhood Network, while the Grand Rapids Community Media Center and the Community Media Center of Santa Rosa represent full-service public-access operations, with equipment, facilities, training, and production assistance among their offerings, covering both broadcast and online technologies. The Buske Group has prepared a paper on Access Basics (PDF).
3. Assessing Community Needs
A key step for those communities that lack PEG channels (and for those looking to upgrade these operations in the course of cable franchise renewal negotiations) is the ascertainment of community needs, a formal process that identifies future cable-related community needs and interests, determines how those needs can best be met, and evaluates the performance of the cable operator under the existing franchise. Normally, the local franchise authority (LFA) engages a consultant to conduct these surveys, but there is plenty of opportunity for community involvement as well. The Buske Group is one of the leaders in the field, and has prepared an overview of the needs-assessment process (PDF). Examples of successful assessments, such as that of Los Angeles (Executive Summary, Full Report, PDFs) can be found online. One community need that is often overlooked is the "institutional network" (I-Net), which cable operators can be asked to provide, and which connect government agencies, schools, and other public and nonprofit entities. For further information on the public-service possibilities of I-Nets, see The FAQs about Institutional Networks, prepared by the Baller-Herbst Law Group (400kb PowerPoint), as well as the Institutional Networks PowerPoint presentation made by the Columbia Telecommunications Corporation at the 2000 Alliance for Community Media Western Regional Conference.
4. Streaming Media
As the media in general and cable systems in particular make the transition from analog to digital, increasing amounts of content will reach our homes via data networks (using the Internet Protocol, or IP). With the blurring of distinctions between broadcasting and online technologies, it behooves community programmers and producers to prepare for an "everything-over-IP" (PDF) world, in which all network traffic--data, video, and voice alike--will be transmitted digitally. Tech Soup, the online information center run by CompuMentor, has prepared a number of informative articles on making the leap into online distribution of multimedia content, including "Webcasting and Web Streaming" and "Sound World," while Deliver Your Media and the California Virtual Campus Streaming Video Primer offer tips on getting started in online content distribution.
5. Focusing on DTV
Although the transition to digital television (DTV) has taken longer than expected, the next generation of television is rapidly approaching, and with it will come new capacity--at least five times that of analog channels--along with the specter of new high-definition extravaganzas. Some of this new capacity could be devoted to independent and alternative voices, although it remains to be seen whether local stations (particularly PBS affiliates and other noncommercial broadcasters) will actually share their new digital largesse with their communities. Plans are already underway for new public interest obligations for digital broadcasters (primarily involving election coverage and other public affairs programming), but this vision needs to be made much more expansive, embracing the educational and cultural programming--including local productions--that is conspicuously absent in today's TV landscape. PBS has outlined its plans for the digital future with ambitious new streams of programming, but it's up to "viewers like us" to demand that local PBS affiliates leave room for community participation in their expanded digital broadcast schedules.
6. Exploring other Broadband Options
Although cable operators still control the lion's share of the broadband market, other platforms, including DSL and wireless mesh networks, offer viable alternatives for high-speed Internet access. Regardless of platform, we should strive to develop a "bandwidth ecology" that is conducive to the development of a robust media system at the local level, drawing on public and private resources alike to create a system that accommodates the production and distribution as well as the consumption of multimedia content. FreeNetworks.org is devoted to the development of high-speed networks (primarily wireless, but also wireline) that serve as shared community resources.
7. Mapping Community Assets
By taking stock of our communities--identifying who is serving local interests and who has something important to say--it is possible to put together a blueprint for the kinds of organizations--civic, social, cultural, and educational--that deserve a place at the new digital communications table. Normally associated with economic redevelopment, community asset mapping can also be useful in the telecommunications context, identifying the informational, educational, cultural, and deliberative resources that would benefit most from broadband networks. Connecticut Public Broadcasting has issued a report on its asset-mapping efforts (PDF) in connection with its digital transition, and in West St. Paul, the Center for Democracy and Citizenship organized a Community Information Corps to involve local youth in a similar mapping project.
8. Developing Collaborative Strategies
If there's an answer to the growing concentration of media ownership in the US, it may well lie in increased collaboration among those organizations and individuals--in the nonprofit sector especially--who are largely ignored by the existing mainstream media. By pooling resources, sharing information, and working together to insist that local organizations not only have a voice in the community but also access to a digital platform for that voice, we can help realize the promise of the broadband revolution. Nationally, the Creative Commons offers model structures for resource sharing, evident in such online projects as the Internet Archive's collection of film and video and its live music archive. At the state/local level, Portal Wisconsin demonstrates the power of networked cultural assets.
9. Engaging in Telecom Policy
Far too often, decisions about the local media environment are made elsewhere--in Washington, where high-priced lawyers and lobbyists ply their trade, and in corporate boardrooms, where the spoils that result from such market-driven policy are divided among the entertainment conglomerates. If there's an exception to this rule, it can be found in the cable franchising process, in which communities have an opportunity both to secure a portion of the cable infrastructure for community use (the so-called PEG set-aside and I-Nets) and then to develop this valuable asset to its full civic, educational, and cultural potential. Nick Miller, of the law firm Miller & Van Eaton has prepared an overview of the regulatory environment that permits such media activism at the local level, and a colleague at Miller & Van Eaton, Frederick Ellrod, authored a presentation entitled "PEG Opportunities in the Franchise Renewal Process" (100kb PowerPoint).
10. Ensuring Diversity of Viewpoint
In the final analysis, the value of the digital communications infrastructure will depend not on the seeming cornucopia of choices that the entertainment industry is determined to bring to our doorsteps, but rather on the options that independent and alternative voices--including those from within our own communities--have in contributing to that media mix. Our goal, in short, should be to ensure that the diversity and democracy that have long defined the Internet are preserved in the new broadband systems that will increasingly become the information and communication lifelines of our communities. Projects such as the Independent Media Center (a network of over 50 collectively run media outlets around the world), Transom.org (which uses the Internet to introduce new voices to noncommercial radio), and NewMusicJukebox (an online library and listening room operated by the American Music Center) provide models for the kinds of do-it-ourselves programming that represents the best chance for achieving true media diversity.
Cable is the leading provider of both multichannel TV and broadband access in the U.S. It is now an essential "lifeline" to the digital age, delivering hundreds of channels, on-demand content, and interactive online applications. LA's citizens, consumers, nonprofits, and businesses will increasingly rely on the infrastructure--the upgraded cable plant--that will be developed as part of the franchise renewal process. Given the city's diverse population and leading role in media production, it is incumbent upon Los Angeles to negotiate an agreement that genuinely reflects the region's varied demography and dynamic economy.
The cable industry has not always been a willing partner in meeting these several needs, however. Cable operators have often fallen short in providing communities with networks of sufficient capacity for two-way interactivity, for example, failing to deliver system upgrades in a timely fashion and limiting the amount of fiber in their hybrid fiber/coax (HFC) systems. Much more capable, "next-generation" set-top boxes are long overdue, and broadband Internet connections have been less than robust (reflecting the industry-wide decision--which speaks volumes about the vision of the field--to devote less than 1 percent of total system capacity to Internet transport).
On the regulatory and legal front, the cable industry has proved even more recalcitrant. It has fought to prevent any "open access" provisions that would permit Internet Service Provider (ISP) competition, and has similarly opposed nondiscriminatory transport guarantees for Internet traffic. In communities such as San Jose, CA, cable has rejected the city's request for a set-aside of up to ten percent of system bandwidth for public use, and for an institutional network for city buildings and schools, the basis for a range of digital services that other cities have used to foster public expression and civic participation. In light of the industry's unfortunate record at the franchise bargaining table, then, the Los Angeles City Council should be fully prepared to confront the cable incumbents' likely objections to a franchise that will make Los Angeles a national leader in providing 21st century cable-related benefits to its residents.
In this critical period of transition--from analog to digital, from dial-up to broadband--the stakes are even higher for local governments when dealing with cable franchise renewals. As more Americans--citizens and consumers alike, nonprofit organizations and commercial enterprises--rely on cable broadband connections, the city must ensure that the network is both robust and readily accessible, so it can foster the full range of civic, educational, and cultural applications that are essential to the growth of the community.
Listed below are ten areas of concern--five overarching themes and five specific franchise requests--that hold the key to realizing the full potential of cable in the broadband era.
1. Digital Democracy: Growing numbers of citizens are engaged in civic activities online. From license renewals to voter education to legislative and regulatory affairs, LA's citizens will rely on the cable network for interactive access to government-related services. The public should have easy access to this "online civic sector," everything from candidate profiles and electoral issues to discussion forums and interactive town meetings.
2. Economic Development: Small neighborhood businesses and entrepreneurs are the lifeblood of the local economy. In order to survive, let alone prosper, they will need to utilize online services for marketing and purchasing. Commercial start-ups from diverse groups are especially vital to LA's well being. Cable must provide all neighborhoods with a network and a service model that supports the growth of community commerce.
3. Independent Media Production : LA's role as a global center for production and distribution will be affected by the cable franchise. First, the City must ensure that fiber connections are available to support high-bandwidth applications for the myriad of production centers. Second, LA's cable systems must support independent production and distribution by ensuring they have access to video servers, electronic program guides, set-top storage devices, and other network elements essential to broad consumer access.
4. Non-Discrimination: Cable has sought favorable rulings at the FCC that shield it from competition in the broadband Internet's critical "last-mile" connections (as have the former "Baby Bells" for their DSL networks). Leading scholars and media companies--including Amazon, Microsoft and Disney--have urged for a policy of "network neutrality" that would ensure all applications are treated fairly. While these issues are the subject of litigation and federal debate, LA should receive written assurances from every cable company that they will treat all applications in a wholly "neutral" fashion.
5. Capacity: Today's cable plant can deliver hundreds of channels and broadband access. But cable has traditionally devoted just a single channel to broadband transport, clearly insufficient for LA's advanced communications needs. Cable operators must make additional bandwidth available to ensure a robust platform for Internet applications. In addition, cable companies should provide video channel capacity for programmers offering city-based services who are unaffiliated with the cable industry.
If these are the broad outlines of a cable system that finally fulfills its civic potential, the basic elements of a successful franchise renewal (covered in greater detail by other speakers today) are as follows:
1. The PEG Platform: While public-, education-, and government-access channels have long been at the heart of franchise negotiations, this platform must now be brought into the 21st century, taking full advantage of the new capabilities--including digital multicasting, video on demand, and interactive data services--that are part of modern cable systems today.
2. Spectrum Flexibility: One of the keys to the reinvigoration of PEG is the shift in our thinking from discrete video channels to a more flexible bandwidth set-aside--75 MHz to 86 MHz. Such capacity (representing some 12 to 14 analog channels or 60 to 80 digital channels) can be put to a variety of public-interest uses, including traditional video programming but by no means restricted to that paradigm.
3. Institutional Network: A high-speed institutional network can be used to link more than municipal departments and buildings. Such networks can encompass a wide range of community resources--from schools and libraries to social service agencies and cultural organizations--adding much needed civic, educational, and cultural content to an online world that is fast becoming merely another outlet for the entertainment conglomerates.
4. Support Structures: Without the rich programming resources to flow through them, cable's PEG pipes mean little. But such operations cost money, and serious consideration must be given to expanding PEG support beyond the traditional sources (which include up to 3 percent of gross cable revenues for PEG equipment and facilities, and whatever share of the 5 percent franchise fee that is earmarked for PEG programming) to include entirely new funding structures that draw on public and private sources alike.
5. System Extensibility: Although cable franchise agreements are normally measured in 10- to 15-year segments, the technologies involved mature much more swiftly. Thus local franchise authorities should build provisions into their agreements for ensuring that PEG and other public interest aspects of the system can take full advantage of the technological advancements that occur during the term of the franchise.
With a concerted effort at the upcoming franchise renewal negotiations, and with adequate funding thereafter, Los Angeles' new digital PEG platform could prove to be a model for the field. These new facilities could serve, in effect, as laboratories for the exploration of community, educational, and municipal services using the new broadband technologies that the cable industry will be introducing over the next several months, including video on demand, interactive television, streaming media, voice over IP, wireless networking, and whatever other new applications that will become possible once cable upgrades to DOCSIS 2.0 and PacketCable implementations (the networking and interface protocols and specifications for delivering advanced, real-time multimedia services over two-way cable plant).
Traditional PEG programming, offered over analog video channels, has served communities well for some three decades. While such programming will continue to be important during this time of transition, it is not too early to begin planning for the next generation of public service programming--both interactive and archival, with real-time, on-demand transactions and other residential, business, and mobile services transmitted by a variety of wired and wireless devices.
As the cable industry and others in the media marketplace actively seek thenext "killer apps," in other words, we should be no less ambitious in discovering their public-interest counterparts, online applications that place the power of advanced telecommunications squarely in the hands of citizens and the community organizations that serve them.
Proposal for Daily Local News and Information Programming in and about each Local Franchise Area
Good afternoon. My name is Adam Clayton Powell, III, and I am presenting this testimony as a Visiting Professor at the USC Annenberg School and as an outgrowth of my work on the Annenberg School's Local News Initiative, which began in 2002. My background in news and technology is set forth in the attached biography.
The purpose of my testimony is to propose that the city require each local cable franchise area to arrange for the production of a daily local news, information and community service television program.
One possible arrangement for such a program service is presented below but we have no doubt that other arrangements could be formulated by the city, the companies, and various local partners.
First, a word of context: At the Annenberg School, we have been examining local news and public service and thinking about ways to improve it. Some of our studies have examined television coverage of politics and government which, as the members of this committee know well, is generally given very short shrift. In fact, up until the 2003 recall campaign, coverage of state and local political campaigns, which offers one useful measurement of localism, had been declining dramatically. If the members wish, we would be pleased to present studies that document that decline in detail.
Similarly, it seems that news coverage by mainstream media in California have tended to make people feel less connected and more alienated from their communities. That is one finding of a multi-year, in depth study of eight local communities, identified by region and ethnicity, which we call the Metamorphosis Project. By contrast, that study has found that community news outlets tend to make people in Los Angeles feel more involved and more connected and to increase their sense of belonging. Again, we can supply those studies to the committee if you would like to see them.
Based on those studies, the Annenberg School decided in 2002 to create what it called a Local News Initiative or LNI. Our goal was to help identify and create new forms of local news that would help people become more knowledgeable about, more connected to, and more involved with their communities.
As a first step, the school asked me to spend a year examining best and innovative practices in the United States and around the world. My study, which covers broadcast television, radio, cable and broadband technologies, is now available in draft form.
As I was developing my study, it became increasingly clear that the most exciting and important developments around the world are at the very, very local level, what we now call micro local news, information and public affairs. Especially in large cities such as Los Angeles, there is no way for television stations to cover the many communities where people live in any sustained way.
With a regional audience of well over ten million television viewers over the age of 12, a station in Los Angeles naturally cannot spend too much time on the city of Los Angeles, which accounts for fewer than four million people, much less on a neighborhood that is a small fraction of the city. Yet we found that people are most interested in news about their own neighborhood and are most interested in becoming involved at that level
Importantly, we also found that there are places in the world where micro local communities are being covered well; at very little cost; and with substantial audiences.
With that background, my colleagues and I at the Annenberg School began to think about what might be done in Los Angeles. At the moment, we think that cable offers the most exciting platform for micro local news, information and public affairs. Moreover, we think a model could be developed that would be enormously useful for the people of each part of this city; bringing greater civic engagement for local schools, parks, cultural institutions, public safety and health clinics.
As an added bonus, a micro local news and information program could also serve the economic interest of cable operators by increasing penetration, by decreasing the expensive churn of customers disconnecting and reconnecting to cable service, and by providing new reasons for customers to use broadband.
For an illustration, we looked at the area where USC is located, the region known to franchise officials as Area K. To make this presentation clearer, a map of Area K is appended. The borders are not very even, but as you will see, it runs from I 10 at the North to Watts at the South, and from Baldwin Hills and Culver City on the East to the Harbor Freeway on the west.
Much of the area is known as South Los Angeles, which has a population of 260,000, according to the 2000 census. Watts has another 35,000. So altogether Area K has a population of approximately 300,000 people and perhaps many more. To put thaty in perspective, Area K has the same population as the city of Tampa, Florida, which is served by eight television stations, 91 radio stations and 24-hour local cable news channels in English and Spanish.
This is not entirely comparable, because Tampa is the hub of a regional television market. But it is undeniable that no Los Angeles TV station or cable channel covers the news of Area K every day as intensively as any one of those eight television stations covers the city of Tampa.
To see what kinds of stories might be covered by an Area K local news outlet, last summer we conducted a community ascertainment project with the terrific assistance of a team of five USC student interns. In the fall, more Annenberg students went into the field with video cameras to document some of the issues identified over the summer. Some of those students are with us today.
With that background, we would like to suggest that the City Council explore ways of creating a micro local news and information initiative in each franchise district. This could be done by creating or partnering with a local non-profit institution that would use some or all of the resources and some or all of the channel space now set aside for local PEG channels.
Such a model might take any one of several forms. It could be funded by the cable company, a local partner, revenues from public service advertising, foundation grants, subscriber contributions or some combination of these funding sources. But in any of its forms it would serve the people and the communities of the city and create a new model that would be studied and emulated around the world.
If the city decides that it wants to explore this option, my colleagues and I would be more than delighted to work with the city and with cable operators to design a viable plan to take advantage of this exciting opportunity.
Thank you.
A. Informal Procedures
- Most franchises renewed through informal negotiation process set forth in Sec. 626(h).
- Congress anticipated that most renewals would be through the informal process. House Report at 72.
- Informal proceedings can be conducted at any time and do not affect the rights of the cable operator to proceed under the formal procedures if an appropriate renewal notice has been sent. TCI of South Carolina, Inc., v. The City of Bennettsville, 4.89-0334-2 (D.S.C. filed July 17, 1990).
- Once a successful franchise renewal has been negotiated, the franchising authority must notify the public and provide an opportunity to comment on the renewal before it is finally granted. Sec. 626(h).
B. Formal Renewal Procedures
A. Background
- If the cable operator has timely requested its formal renewal rights, the City cannot deny renewal cannot without recourse to the formal process (unless the operator defaults on the process).
- It may be possible to revoke a franchise even after renewal proceedings have begun.
B. Needs Ascertainment
- First stage in formal renewal process>. Process intended to give public and franchising authority opportunity to identify future cable-related community needs and interests and review past performance of cable operator (Sec. 626(a)).
- Ascertainment can be accomplished through a variety of tools, including public hearings, surveys, focus groups, interviews, and reports and audits of the operator's past performance.
- No Time Limit. The Franchise Authority determines when the Ascertainment Process is completed. No single study or report automatically concludes the Ascertainment.
C. Renewal Proposal
- Second stage of renewal process. Proposal submitted by operator either upon request of franchising authority or upon cable operator's initiative after the Franchise Authority completes the Ascertainment Process.
- A request for proposal issued by franchising authority may establish requirements for facilities and equipment that are related to operation of system, including proposals for an upgrade, subject to Sec. 624(b).
- Franchise fee is limited to 5% of cable operator's gross revenue "related to cable services". However, not all payments made by the operator are franchise fees, e.g., funds contributed by cable operator as capital costs of PEG are not considered part of franchise fee (Sec. 622(g)).
- A franchising authority can establish deadlines for submission of formal proposal (Sec. 626(b)(3)). Such deadlines must conform to state and local law and must be communicated to the cable operator in writing. See Eastern Telecom Corporation v. Borough of East Conemaugh, et al., 872 F.2d 30, 35 (3rd Cir. 1989).
- Third stage of renewal process. The franchising authority must decide to renew or preliminarily deny within four months of receipt of proposal.
D. Administrative Proceeding for Denial
- Fourth Stage of renewal Process. If preliminarily denied, the cable operator can request administrative proceedings, or such proceedings may begin upon franchising authority's own initiative. Sec. 626(c)(1).
- Cable operator must be given adequate notice and fair opportunity for full participation, including the right to introduce evidence, to require the production of evidence and to question witnesses. A transcript of the proceedings must be made.
- A grant of renewal upon terms unacceptable to cable operator may be treated as denial. House Report at 75.
- ANY FINAL DECISION NOT TO RENEW MUST BE BASED ON AN ADVERSE FINDING WITH RESPECT TO ONE OF FOUR FACTORS:
- Whether the cable operator has substantially complied with the material terms of the franchise and applicable law. Any violations cannot be held against cable operator unless it has been given notice and opportunity to cure. Sec. 626(d).
- Whether the quality of the cable operator's service, including signal quality, response to consumer complaints, and billing practices, but without regard to the mix or quality of cable services or other services provided over the system has been reasonable in light of community needs. Any violations cannot be held against cable operator unless it has been given notice and opportunity to cure. Sec. 626(d).
- Whether the cable operator has the financial, legal and technical ability to provide the services, facilities and equipment as set forth in the cable operator's proposal. Past performance is relevant and may be considered in reaching decision on cable operator's technical ability. See Rolla Cable System, Inc., v. City of Rolla, 89-211C(2) (E.D. Mo. April 15, 1991).
- Whether the cable operator's proposal is reasonable to meet the future cable-related community needs and interests, taking into account the cost of meeting such needs and interests. The franchising authority may not deny a proposal on the basis of a comparative bid, but "a court should defer to the franchising authority's identification of the community's needs and interests except to the extent necessary to weigh the needs and interests against the cost of implementing them." Union CATV, Inc. v. City of Sturgis, 107 F.3d 434 (6th Cir. 1997).
- Upon completion of the administrative proceeding, the franchising authority must issue a written decision stating the reasons for denial. Sec. 626(c)(3).
E. Judicial Review
- Cable operator must appeal in federal or state court within 120 days of receipt of the notice of the decision. Secs. 626(e)(1), 635.
- The court grants "appropriate relief" if
- The franchising authority does not comply with the Cable Act; or
- The cable operator demonstrates adverse finding was not supported by a preponderance of the evidence. Sec. 626(e)(2).
1. I understand that the federal law has a complicated formal process, and also an informal process. My operator wants me to ignore the formal process and just enter into negotiations. Is that a good idea?
It is generally not a good idea. Federal law does allow two ways to work a renewal: through a formal process, or by negotiated agreement. But the two processes can and should work in tandem.
The first step in the formal process is to identify future, cable-related needs and interests of the community and to review the past performance of the operator. By taking this first step, a community will obtain the information that it needs to be successful at the bargaining table, and it will be in a position to comply with the formal procedures if bargaining fails.
2. Why can't I just kick my operator out of town and seek bids from others?
Federal law doesn't allow it. Under the federal Cable Act, the incumbent cable operator has special rights to consideration. If the operator activates the formal renewal process, it is protected against an arbitrary denial of renewal. A community has to go through certain steps and conduct certain proceedings before renewal can be denied. The process is not competitive. Renewal cannot be denied simply because someone else might be willing to offer more. An incumbent operator's past performance and proposal for future renewal must be evaluated on its own merits (or demerits).
3. Can a renewal request be denied?
Yes, both legally and practically. Although most communities do renew the incumbent's franchise, several communities have successfully denied renewal.
The Cable Act permits a community to deny renewal under any of the following tests.
- Past performance has been inadequate.
- The operator is legally unqualified.
- The operator is unwilling or unable to devote the necessary technical skills and financial resources to the community.
- The operator is unwilling to satisfy the future, cable-related needs and interests of the community (considering the cost of meeting those needs and interests).
4. What can I get through the renewal process?
Among other things, as part of the renewal process, a community can insist on the following.
- Ensure that the cable system is properly upgraded.
- Require the operator to set aside system capacity for public educational and government use of the cable system.
- Require capital support for those channels (studios and equipment, for example).
- Require the operator to provide an institutional network providing, for example, a modern telecommunications link for schools, libraries and government.
A community can also ensure that any construction of the cable system proceeds in an orderly fashion, that all parts of the community can obtain service, and that the system is rebuilt in a reasonable period of time.
The franchise term can also be established through the renewal process--renewals do not have to be for 15 years, and often are far shorter.
Communities often will establish customer service standards; franchise fee requirements; procedures for reviewing operator performance and for ensuring that the operator continues to satisfy community needs throughout the franchise term.
There are some things that communities cannot do through the renewal process. Perhaps most importantly, a municipality cannot (1) require the operator to provide specific programs (a community should be able to establish channel capacity requirements); or (2) require the operator to provide service at certain prices (other than rates for basic service and equipment established consistent with federal regulations).
5. The operator tells me that anything I ask for will be passed through in rates. Is that right?
No, it is not.
In communities like Los Angeles that are regulating cable rates, an operator can pass through increases> in its external costs to subscribers. Some franchise requirements, such as PEG and franchise fee requirements, are external costs, but not all are.
In addition, the operator is only entitled to pass through the increase in those costs. Modern franchise requirements do not necessarily result in increases in costs to the operator, depending in part on what was required under the prior franchise. In several recent renewals, for example, operators have agreed that only a small part of the total renewal franchise requirements are eligible for rate pass-through under FCC rules.
If the operator claims a pass-through is necessary, ask for detailed information on its revenues and expenses. It is often rather simple to show that the community's needs and interests can be satisfied without raising rates.
1. The "level playing field" demand
Almost all operators are now demanding a renewal clause that requires anyone who provides cable service within the community to satisfy the same conditions as those imposed on the incumbent operator.
These clauses are very dangerous. A community should approach level playing field clauses with extreme caution and skepticism. The typical "level playing field" clause proffered by cable industry negotiators can easily put a community in breach of its contract, and require the community to give up some of the benefits for which it bargained.
These clauses become more and more critical as new cable providers ask for franchises that contain far different provisions than existing franchises.
The debate over these clauses will be contentious, but can be resolved in a way favorable to the community.
2. How should cities regulate in a more competitive environment?
While cable service remains a de facto monopoly in most neighborhoods, Los Angeles is beginning to face questions as new companies seek "overbuild" cable franchises; as incumbent cable companies begin to provide advanced cable services; and as cable companies begin to enter non-cable markets.
Some communities have suspended certain requirements once two cable companies begin to compete head-to-head throughout the community (the Tacoma franchise provides an example of this approach).
Some communities have established requirements designed to prevent cable from using its market position to control high-speed Internet cable services. Some communities establish generic requirements that apply to all users of the right-of-ways, such as OVS operators and companies leasing lines to video service providers. As critically, consider how to review and audit franchise fee payments under circumstances where an operator may be providing a bundle of services--telephone, Internet and cable service--for a consolidated price. Is the entire package subject to a fee? Or only a portion of it?
3. Can a community establish detailed system rebuild requirements?
The cable industry argues that 1996 changes to the Cable Act prohibit communities from requiring a company to install fiber optics, or from requiring any particular system design.
The FCC has stated that there are some limitations on local authority. According to the FCC, a community may not dictate "whether a cable operator uses digital or analog transmissions [or to] determine whether its transmission plant is composed of coaxial cable, fiber optic cable or microwave radio facilities ...." However, the FCC went on to state that "[w]hile the 1996 Act imposes some specific limits of the role [local franchising authorities] play with respect to subscriber equipment and transmission technology, it does not diminish the [local franchising authorities'] important responsibilities in determining local cable-related needs and interests and seeing that those needs are met through the franchising and renewal process. Although local authorities are limited in dictating the use of transmission technologies, other facility and equipment requirements can still be enforced..." The FCC decision is a formula for confusion and trouble, and will undoubtedly lead many operators to continue to argue that any design requirements are prohibited. However, many operators recognize that it is useful to both sides to specify what sort of system will satisfy local needs and interests, and remain willing to agree to carefully crafted renewal provisions that require rebuild systems with fiber optics.
4. Institutional Networks
Communities commonly require operators to provide institutional networks to link schools, libraries and governments for video, voice and data communications. These are powerful tools to a community. With the "information age" it's a small percentage of the cost of building a separate information system.
I-NET language needs to be crafted so that both parties understand what is required to assure that the resulting network will be useable. Typically, I-NETs must be individually tailored to local needs, and integrated with the community's existing information systems. One common error is to agree to restrictions on use which seem inoffensive but which have the effect of preventing interconnection of the I-NET to other networks, or which prevent a community from providing services to the community (such as transmission of GIS information) for a charge. To get a good I-NET, a substantial amount of planning, organization and negotiation time is required.
5. PEG Requirements
Communities have required operators to set aside subscriber network capacity and channels for public, educational and government use for some time now - and communities that have obtained adequate financial support for those channels generally have found them to be an invaluable communications asset to the community. As companies move into a new digital world, however, new questions arise: can the community control the new digital capacity for PEG purposes and use this digital capacity to provide multiple channels of video and non-video information to subscribers' homes? If the operator controls all of the digital capacity, will PEG be precluded from digital use entirely, or limited only to the bandwidth required to send a one-way video channel to the home, thereby limiting the type and amount of information that can be provided via PEG channels?
6. Scope of the franchise
The operator will seek to include language in the franchise which effectively authorizes provision of telecommunications services without obtaining any additional license or franchise. Operators will often argue that the 1996 amendments to the Cable Act require cities to allow cable operators to provide telecommunications services without such additional authorization.
An operator wants a cable franchise that requires no further authorization to provide telecommunications services. If the cable franchise is authority to provide telecommunications services, the operator will claim that the fees and charges it must pay are limited to those specified in the cable franchise, which in new franchises do not reach telecommunications services.
Renewal should not be used as a tool to prevent telecommunications competition, but communities should ensure that the cable operator does not use renewal as a tool to gain an advantage over potential competitors.
7. Scope of Authority Over Internet Services
The Federal Communications Commission has declared that cable modem service is "an interstate information service" and neither a "telecommunications service" nor a "cable service." The 9th Circuit has found to the contrary--twice. In the 9th Circuit, cable modem service is part "telecommunications service" and part "cable service". Recently, the FCC is moving in the direction of declaring that Voice over Internet ("VoIP") is also an interstate information service, not subject to state or local authority.
If Internet service is treated as a cable service, issues as to the scope of the franchise are irrelevant --the cable franchise by definition permits the operator to provide cable services, and no other authorization would be necessary. Accordingly, several operators have agreed to rebuild systems so that the cable systems have the capability to provide high-speed, two-way communications to and from the home. Currently, all operators refuse to pay a franchise fee on Internet service revenues, claiming the FCC declaration insulates the service from franchise fees.
If the service is a "telecommunications service", the Cable Act and California statutes creating the Public Utility Commission largely preempt local regulatory authority. If the service is an "information service", then the City may retain very broad authority since the FCC's own authority to regulate or to preempt is unstated in federal law and California Home Rule authority empowers the City to assert all authority not reserved to the State. This subjects the cable operator to independent City regulations over competition, customer service, and Right-of-way access/compensation/construction rules.
Cable has become the dominant form of broadband communications to residences. Owing to its physical capacity, it can carry a wider range of communications services than a copper telephone wire or power line.
As the largest communications “pipe” entering a residence or small business, it has the theoretical capability of simultaneously transporting:
Cable has evolved since its inception in the 1950s and 1960s and continues to evolve. The original systems served tens of thousands of homes and provided improved reception of regular off-air television. Later systems also offered satellite channels (HBO, TBS, pay-per-view, CSPAN).
“Bandwidth” refers to the speed or capacity of the cable. Older systems carried 40 to 60 TV channels (330 to 450 MHz of bandwidth). Upgraded systems have 750 to 860 MHz of bandwidth, now including about 30 MHz from the subscriber to the system. The new bandwidth enables the system to have more channels and more advanced services.
“Analog” refers to traditional television or voice technology. If an analog signal becomes weak, it may appear snowy or distorted.
“Digital” refers to the transmission or storage of video, data, or voice signals as “1”s or “0” and is a more advanced technology than analog. Conversion from analog to digital is done at the studio or headend. It results in:
The use of digital technology and the increasing power of computer desktops and the Internet may result in Internet technologies replacing television broadcast stations, cable-TV, and direct satellite technologies.
“Fiber Optics” are strands of glass used in new-technology communications cables. Cable companies use fiber optics between their main buildings in failsafe rings. Cable companies generally also construct fiber from their main buildings to neighborhoods.
Fiber optics offer:
Fiber cables are generally lashed to the pre-existing cable-TV cables. Cable systems typically use a hybrid fiber-coax (HFC) design. In HFC, the fiber cable interfaces with the coaxial cable in each neighborhood at a “node.”
Another design type is fiber-to-the-premises (FTTP). FTTP extends the benefits of narrowcasting to individual homes or businesses, providing practically unlimited capacity. Few cable companies use FTTP. Most FTTP is offered by municipal providers, networks installed by builders and developers, and trials by telephone carriers.
Coaxial cable (traditional metallic cable) remains in most neighborhoods and premises. Limitations relative to fiber optics include capacity, signal quality, and reliability.
Per foot, the costs of fiber or coaxial construction are comparable. Most costs are due to labor—therefore in areas of new construction it is optimal to build fiber instead of or in addition to coaxial cable.
Cable is built and maintained in the public rights of way. Cable construction and maintenance pose public safety issues and create burden and expense on the public rights of way.
Video-on-demand (VOD) provides the ability to select between thousands of video programs with rewind, pause, and fast-forward functionality. Cable provides VOD by dedicating a channel between the viewer and the system.
VOD is stored on disk drives and streamed to the viewer from a video file server.
Voice-over-IP (VoIP) delivers voice services using the same channels and technical platform as the cable modem system.
Depending on the configuration of the system, cable VoIP:
Some cable operators use their systems as backbone networks fo