Private Role in Vt. Network Project Draws Skepticism
A plan by Vt. Gov. Jim Douglas (R) to make the Green Mountain State a broadband paradise got a cool reaction from some activists wary of the private part of Douglas’s “public- private” proposal. Speaking to the Freedom to Connect conference near D.C., Douglas pitched his “e-state” plan as a way to create a state authority to make broadband and cellular networks available across Vt., whose rural landscape leaves large gaps in coverage. “We don’t want just to catch up -- we want to lead” other states in expanding access, Douglas said.
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Douglas, in office since 2003, said he original intended simply to deepen fixed and wireless penetration, but “we really have the opportunity to leap over” current network infrastructure. Douglas hopes to draw businesses able to serve customers from anywhere if they have broad network coverage for their operations. Unless Vt. can replace its “legacy” industries, the state is in for hard times, he said: “This is no time for 1/2 measures or mediocrity.”
The plan, offered in H-248, would blanket Vt. with network coverage by 2010. A proposed Vt. Telecom Authority would issue up to $40 million in state-backed bonds to spur private investment Douglas pegs at $200 million. The state would pay for and build basic infrastructure -- “middle mile” fiber deployments and towers -- letting private companies take the lead on last-mile fiber and radio equipment, which need more frequent updates to keep up with innovation, he said.
H-248 relies heavily on incentives to private companies to build facilities and offer services. Providers would get expedited right-of-way access and low-interest financing for expanding service to neglected areas. Nearly 9 Vt. households in 10 have access to broadband, up from 2/3 in 2004, but in some rural areas the figure dips to 1/2, Douglas said. The minimum service level for fixed broadband would be 3 Mbps upload and download speed by 2010, said Tom Evslin, creator of AT&T’s WorldNet ISP and now technical expert for Douglas, a former political rival. The state hopes to make that 20 Mbps by 2013 -- by then, according to Evslin, that will be deemed a standard network speed.
Listeners gently chided Douglas for not going further, especially in efforts to enlist other states. Told that the National Governors Assn. has no position on spectrum policy, a gap some consider the main roadblock to municipal broadband, Douglas said the Assn. works by “consensus” and avoids controversy. Evslin said Vt. itself could put in spectrum bids in federal auctions. Fresh from a recent Assn. meeting, Douglas acknowledged that “nobody” is focusing on network expansion and investment as much as his state is.
Some Vt. municipalities are reaching past the state plan, a questioner said. Another noted that the city of Burlington has agreed to build 50 Mbps fiber to the home and is offering to collaborate with other municipalities. Why not build and run the proposed statewide network using private financing, as Burlington is doing? Different models are appropriate for different areas and “I don’t preclude any of them,” Douglas said. But that’s a long-term goal with a high price -- “I'm cautious fiscally by nature” -- and Douglas wants a faster turnaround, best obtained by inducing private-sector help.
Another listener pushed Douglas for his view on Verizon’s proposed spinoff of access lines to FairPoint, calling the smaller company ill-equipped to handle the 1.5 million Verizon lines in New England. Reminded of a Vt. bill to create a more stringent “public good” standard for evaluating such deals, Douglas said he wasn’t sure the bill is needed. He trusts the state Public Service Board, which has authority over the transaction, he said, adding that he’s wary of the state legislature making telecom policy. A bill was once introduced in the Vt. statehouse to cap payphone charges at 10 cents a call, Douglas said.