Will South Carolina miss a great opportunity to be "first in the nation" on broadband access?
South Carolina is currently the only state in the nation to own all of its educational broadband licenses - and thus have the opportunity to provide free wireless internet for all schools, state agencies, and emergency first responders, and reduced-price wireless for rural residents who currently don't have broadband access, while still leasing 75% of its licenses and banking that money. Instead, state law-makers are about to lease all but the legally-mandated 5% reserve to two companies for an amount that may not be anywhere near what it's worth.
As even a consultant hired by the South Carolina EBS Commission to look for potential buyers admitted, "The timing in South Carolina could be better," with the economy still less than vigorous. (http://www.fiercebroadbandwireless.com/story/south-carolina-prepared-lease-wide-swath-wireless-spectrum/2009-01-26) The state was required to submit to the FCC a plan to use its sixty-seven educational broadband licenses by April 15 of this year, but as far as I can tell, nothing would prevent South Carolina from leasing any or all of the available broadband capacity at a later date, pending FCC approval. Meanwhile, some (see http://www.scpronet.com/policy-work/universal-internet-access-in-sc) argue that retaining just 25% (20% of the licenses plus the 5% the state must reserve by law for educational use) would allow us to have what no other state currently has - statewide, free or reduced-price wireless access for rural customers who aren't now being served by private companies; more than adequate broadband access for all primary and secondary schools as well as for use in higher education; and free, assured broadband for emergency services throughout the state. State agencies could go wireless, too, which could impact the efficiency of state government in a big way.
Lawmakers in favor of leasing the full 95% argue that the difference between their plan and the 75% plan is $35 million that could be used to help South Carolina residents in other ways. But state agencies spent $71 million on telecom services last year. The University of South Carolina just agreed to pay $840,000 for Wi-Fi. It's not a stretch to imagine that we could save far more than $35 million (at the state, county, and municipal levels) by keeping just 20% of the total availability for our own use.
Those who believe in empowering the free market, not government, to manage resources such as broadband will say that private enterprise can more efficiently provide internet access to rural communities and schools than any government can. But there is nothing in the contract our state is about to approve that requires that any of the leased broadband be used in rural or predominantly low-income areas. P. Kelley Dunne, the CEO of DigitalBridge (one of the companies to which a lease may soon be granted) told State Rep. Gilda Cobb-Hunter of Orangeburg that his company has a track record of providing access to small towns. But he also said, "The service delivery will be market-driven." Naturally; that's what we all expect of private enterprise. South Carolina would be wise to remember that before the Rural Electrification Administration (established as part of the New Deal) set up electric cooperatives to build power lines and get electricity to farms and small towns, rural areas had little hope of having electric power for many years, possibly decades.
Thankfully, the lease contract does allow the state to use the controversial 20% at first, and at any time it may elect to reserve that 20% and simply receive $35 million less over the remaining years of the lease. But Clearwire, the other company named in the lease, can also elect at any time to begin using the 20%, and that point it will be too late for us to change our mind. A limited renegotiation will be allowed after fifteen years. But why wait fifteen years when we have the opportunity NOW to improve media access in our classrooms?
Education is the key to improving most aspects of life in South Carolina - the kinds of jobs that are available here, the kinds of companies we're able to attract, crime, and many more crucial issues. When use of the internet (and the resources available on the internet) are such an important part of how many people are expected to do their jobs now, we can't afford to miss this opportunity. Imagine how critical the internet and wireless communication could be in fifteen years, let alone thirty (when the lease is set to end). Why should we be left behind when we have the choice to be at the forefront, not the tail end, of the nation?
I am trying to figure out exactly where the lease proposal is in the process of approval. It may already be the State Budget and Control Board's decision to make. There is an FCC public forum tonight from 6 to 8pm in Ravenel, though, and another tomorrow morning at Trident Tech from 9am to noon, if anyone is interested. http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-293800A1.pdf The events are being held to solicit comments on developing a "National Broadband Plan," and not on this specific issue, but who knows? Attending and commenting might do some good.
- KPE
As even a consultant hired by the South Carolina EBS Commission to look for potential buyers admitted, "The timing in South Carolina could be better," with the economy still less than vigorous. (http://www.fiercebroadbandwireless.com/story/south-carolina-prepared-lease-wide-swath-wireless-spectrum/2009-01-26) The state was required to submit to the FCC a plan to use its sixty-seven educational broadband licenses by April 15 of this year, but as far as I can tell, nothing would prevent South Carolina from leasing any or all of the available broadband capacity at a later date, pending FCC approval. Meanwhile, some (see http://www.scpronet.com/policy-work/universal-internet-access-in-sc) argue that retaining just 25% (20% of the licenses plus the 5% the state must reserve by law for educational use) would allow us to have what no other state currently has - statewide, free or reduced-price wireless access for rural customers who aren't now being served by private companies; more than adequate broadband access for all primary and secondary schools as well as for use in higher education; and free, assured broadband for emergency services throughout the state. State agencies could go wireless, too, which could impact the efficiency of state government in a big way.
Lawmakers in favor of leasing the full 95% argue that the difference between their plan and the 75% plan is $35 million that could be used to help South Carolina residents in other ways. But state agencies spent $71 million on telecom services last year. The University of South Carolina just agreed to pay $840,000 for Wi-Fi. It's not a stretch to imagine that we could save far more than $35 million (at the state, county, and municipal levels) by keeping just 20% of the total availability for our own use.
Those who believe in empowering the free market, not government, to manage resources such as broadband will say that private enterprise can more efficiently provide internet access to rural communities and schools than any government can. But there is nothing in the contract our state is about to approve that requires that any of the leased broadband be used in rural or predominantly low-income areas. P. Kelley Dunne, the CEO of DigitalBridge (one of the companies to which a lease may soon be granted) told State Rep. Gilda Cobb-Hunter of Orangeburg that his company has a track record of providing access to small towns. But he also said, "The service delivery will be market-driven." Naturally; that's what we all expect of private enterprise. South Carolina would be wise to remember that before the Rural Electrification Administration (established as part of the New Deal) set up electric cooperatives to build power lines and get electricity to farms and small towns, rural areas had little hope of having electric power for many years, possibly decades.
Thankfully, the lease contract does allow the state to use the controversial 20% at first, and at any time it may elect to reserve that 20% and simply receive $35 million less over the remaining years of the lease. But Clearwire, the other company named in the lease, can also elect at any time to begin using the 20%, and that point it will be too late for us to change our mind. A limited renegotiation will be allowed after fifteen years. But why wait fifteen years when we have the opportunity NOW to improve media access in our classrooms?
Education is the key to improving most aspects of life in South Carolina - the kinds of jobs that are available here, the kinds of companies we're able to attract, crime, and many more crucial issues. When use of the internet (and the resources available on the internet) are such an important part of how many people are expected to do their jobs now, we can't afford to miss this opportunity. Imagine how critical the internet and wireless communication could be in fifteen years, let alone thirty (when the lease is set to end). Why should we be left behind when we have the choice to be at the forefront, not the tail end, of the nation?
I am trying to figure out exactly where the lease proposal is in the process of approval. It may already be the State Budget and Control Board's decision to make. There is an FCC public forum tonight from 6 to 8pm in Ravenel, though, and another tomorrow morning at Trident Tech from 9am to noon, if anyone is interested. http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-293800A1.pdf The events are being held to solicit comments on developing a "National Broadband Plan," and not on this specific issue, but who knows? Attending and commenting might do some good.
- KPE
posted by The Eastvold Blog at 11:20 AM
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