Fair Fights and Free Markets GONs as retail competitors Welcome to FISPALIVE Atlanta 2014

2 Government Help “The nine most terrifying words in the English Language are: ‘I’m from the Government, and I’m here to help.’” – Ronald Reagan

Government “Help” from a GON. -Uses Tax payer dollars to defray costs. -Competes on a retail level with free market participants. -Creeps into other areas not authorized by State Law in Tennessee -Cable TV. -Web hosting. -Technical support services. -Telecommunications and Equipment. Service Provider Forum 2013

Legislation in Tennessee  Seeks to expand the reach of Government Owned Retail Networks.  Sells itself as serving “unserved areas”.  Defines “unserved” as not having “fiber”, “symmetrical” and “100mbps” service.  Allows and encourages the GON to “Cherry Pick” the best customers. Service Provider Forum 2013

Rhetoric used by GON advocates  It is needed by our Health Care system.  It is for the “children”, “Sick Children”  It is for economic development.  It creates jobs.  It provides competition.  There is no competition. It is a “crisis”. The only acceptable technology is FTTH and FTTB. Service Provider Forum 2013

Tennessee as a Test  Home of EPB – Nations largest taxpayer subsidized, retail network.  Held out as the model of success.  Cost in excess of $300 Million Dollars. –$111 Million a Federal Dept. of Energy Grant. –Balance Electric Revenue Bonds. Service Provider Forum 2013

Tennessee Legislative Efforts  Allow Government Networks outside their municipal boundaries.  Cherry Pick best customers.  Does Not solve universal access “problem” Service Provider Forum 2013

Learning the System Legislation is introduced in the first few weeks of the “session”. It has “sponsors” and “co- sponsors”. Service Provider Forum 2013

Early Engagement Use your state legislature website to find the bills that affect your business. Find the sponsors and co-sponsors and them. Follow up with a phone call. Service Provider Forum 2013

Spend a Day at your Capital.  Visit the sponsor in his or her office.  Visit the co-sponsors.  Find the Committee Members offices.  Hang out in the hallway and “lobby”. Eventually you will find who you are looking for.  Network with others.  Leave behind business cards, letters, material that bolsters your position. Service Provider Forum 2013

Find your Allies  This issue, my allies were:  Other FISPA Tennessee Service Providers.  ATT, Charter, Comcast, Centurylink, TDDS.  Others such as the National Taxpayers Union.  NFIB was also helpful behind the scenes. –Helpful if you are contributing to NFIB “Safe Trust”. Service Provider Forum 2013

God Hates a Coward  Smaller providers should take the lead.  It is hard to argue that RevTel is the Big Bad Phone Company.  Take Every Opportunity you can to tell your story.  You know far more than they do about the issue. Service Provider Forum 2013

Victory The Bill I was opposed to was withdrawn in committee after it was clear the sponsor lacked the votes to proceed. I’m sure we will do it all over again next January. Service Provider Forum 2013

Now a National Issue Service Provider Forum 2013 The GON proponents think this is just like the 1930s and the Electrification of rural America. They want the Government to own the network. They are not your allies.

Hear Chairman Wheeler “I believe that it is in the best interests of consumers and competition that the FCC exercises its power to preempt state laws that ban or restrict competition from community broadband. Given the opportunity, we will do so.” Service Provider Forum 2013

Insist on open access  I prefer that Government protect my private property rights.  That May not be a realistic goal. Therefore a compromise is to insist on open access.  Don’t let the Government take over this thriving industry. Service Provider Forum 2013