Fairpoint and Free Market Fundamentalist Allies In Maine Try To Block Stimulus Grant.

January 4, 2010 , , , ,

Ya know, if my state got a grant for $24.5 million to build out broadband networks in underserved areas, I would jump for joy. But I'm not in the Maine legislature, so what do I know?

Last month, NTIA gave Great Works internet in Maine $24.5 million toward a fiber optic network. The grant is a classic public/private partnership for a middle mile project that includes, among others the University of Maine.

Fairpoint, Maine's primary rural LEC, has objected to this “undue competition with the private sector.” This would be funny, given how Fairpoint has become the poster child for the failure of the private sector to deliver on its big promises to rural communities. But Fairpoint's talking points have ended up in legislation filed by Maine State Senator Lisa Marrache (D-Waterville) and Maine State Rep. Stacey Fitts (R-Pittsfield). Despite the fact that middle mile build out will help companies like Fairpoint (while also helping their competitors), we get the usual ideologically-driven nonsense about how the public sector ought to know its place and leave the driving to the all-knowing and super-efficient firms like Fairpoint — assuming Maine's rural residents like the prospect of waiting for a bankrupt company to satisfy its creditors and bring them broadband.

I would hope that the good folks of Maine would make their feelings on this subject sufficiently clear to prevent other members of the Maine legislature from joining this foolishness — at least if they want to see jobs created from building the network and the economic growth broadband penetration provides. Of more concern is that this sort of response (especially if it succeeds) has the potential to discourage NTIA and RUS from funding projects with a state/local government component. Again, I would hope that NTIA and RUS will continue to evaluate programs on merit and give grants where they will do the most good rather than let a few state reps who would rather collect campaign contributions for themselves than grants for their states scare them off.

More importantly, this should be the wake up call for Congress to finally pass the Community Broadband Act. This piece of legislation goes back to 2006, and has made it out of Committee in the Senate with bipartisan support twice. In the absence of serious threats from state legislatures to pass, it has simply never made it to a full floor vote. But as the Marrache-Fitts-Fairpoint bill in Maine makes clear, it would serve all of us to have this issue cleared up once and for all.

About Harold Feld

Harold Feld is Public Knowledge’s Senior Vice President and author of “The Case for the Digital Platform Act,” a guide to what government can do to preserve competition and empower individual users in the huge swath of our economy now referred to as “Big Tech.” Former FCC Chairman Tom Wheeler described this book as, “[...] a tour de force of the issues raised by the digital economy and internet capitalism.” For more than 20 years, Feld has practiced law at the intersection of technology, broadband, and media policy in both the private sector and in the public interest community. Feld has an undergraduate degree from Princeton University, a law degree from Boston University, and clerked for the D.C. Court of Appeals. Feld also writes “Tales of the Sausage Factory,” a progressive blog on media and telecom policy. In 2007, Illinois Senator Dick Durbin praised him and his blog for “[doing] a lot of great work helping people understand how FCC decisions affect people and communities on the ground.”