Statewide Broadband ‘Economics Do Not Work,’ Wisconsin Telcos Warn

Industry, on the whole, praised the broadband initiative. “AT&T Wisconsin strongly endorses the Playbook’s focus on actions that have consensus among industry participants,” the carrier said (http://xrl.us/bnocub). “By focusing on realistic opportunities that have consensus, the Playbook, if executed, holds a real promise of advancing broadband penetration in Wisconsin.” CenturyLink underscored the imperative nature of such a broadband initiative in its comments but emphasized the work already done. The company features 94 percent broadband-enabled lines among its customers, it said. The FCC’s Eighth Broadband Progress Report, released in August, “is both timely and highly relevant,” the Wisconsin State Telecommunications Association (WSTA) said (http://xrl.us/bnodj3). The state will need to establish definitions of unserved areas and should focus on areas where “existing broadband speeds are 1.5 Mbps or less,” the association said.

Companies caution that broadband tax incentives may not be enough to deploy statewide broadband, although the idea of incentives was well received. CenturyLink proposed creating incentives that “not only expand service to unserved areas but also seek to increase the speeds of high speed internet service that already is deployed.” It pointed to Wisconsin’s broadband credits program from the last five years and suggested the state follow that model but without a pre-application process. The WSTA warned that incentives will be no silver bullet in deploying broadband. “The investment needed to provide the service in these areas is of a magnitude that, even with tax incentive, the economics do not work,” the association said. CenturyLink noted the same: “The economics do not justify the costs of provisioning broadband service in the remaining 6% [of service] area ... It is uneconomical to provide broadband service to the remaining unserved areas of our service territory” (http://xrl.us/bnodfk). The company described similar challenges associated with the FCC’s Connect America Fund.

CenturyLink recommends more broadband funding. It suggests “a Wisconsin specific state technology fund to expand broadband availability, increase data transmission speeds in underserved areas, and ensure the continued deployment of voice service in high cost areas.” This option may have “opponents” but is a “viable” broadband solution, CenturyLink said.

The PSC’s database management will be crucial, industry voices said. AT&T recommends the commission create a database “on a number of topics, including model legislation from other states.” Another element would “standardize municipal review of all tower sitings,” AT&T said. The playbook calls for a map of broadband provider data, and AT&T recommends utilizing NTIA broadband mapping. “Broadband providers should not be straddled with the time and expense associated with additional data retention and filing requirements,” it said. “Moreover, the Commission has no authority to impose such requirements.” CenturyLink recommends any database “also include issues that are important to wireline broadband providers” in addition to wireless, and said right-of-way rules shouldn’t “favor one technology over another.” WCCA noted that the most cost-effective option “may be a fixed wireless solution” in “many” cases (http://xrl.us/bnodiq).

The so-called CALLS CLECs, comprising Windstream, tw telecom and EarthLink Business, lent specific recommendations to the different plays. A goals statement would “help clearly define the ends sought by utilization of the plays,” they said (http://xrl.us/bnocti). The CALLS CLECs propose the Public Service Commission limit how municipalities are allowed to “impose” conditions on broadband installation, avoid duplication by creating a database of available poles and conduits in each municipality, streamline the state permitting process for broadband installation, and ensure broadband-providing CLEC representatives have a place on the proposed advisory committee. WCCA also said it would “oppose incentivizing providers to offer duplicative services."

Deregulation and streamlining will play a role in creating broadband opportunities, multiple commenters said. “These roadblocks to cell tower upgrades chill investment in wireless broadband and can result in carriers moving their money and investment outside Wisconsin,” AT&T said of the municipal review process for cell towers. “State legislation is necessary to establish uniform, statewide guidelines by which municipalities can review and approve cell tower requests for both new locations and modifications of existing towers.” It points to laws in Michigan and New Jersey on wireless collocation of existing cell towers as a model for laws that should be passed in Wisconsin.

Two non-industry playbook commenters warned Friday of what they call “toxic” (http://xrl.us/bnodop) and “dangerous” (http://xrl.us/bnodov) effects of wireless. Both advocate for fiber.