Plicy Backgrunder Cmmunity Wireless: Overview f Current Plicy Debates By Naveen Lakshmipathy Updated January 10, 2007 * Backgrund: Lw-cst, high-speed, cmmunity-based wireless bradband netwrks are crpping up acrss the cuntry revlutinizing public cmmunicatins, spurring ecnmic develpment, and bridging the digital divide. They blanket entire twns, cities and cunties in rural and urban areas and serve as mbile cmmunicatins systems fr public safety agencies in cmmunities natinwide. While the vast majrity f these bradband prviders are small cmmercial Wireless Internet Service Prviders (WISPs), a grwing number are spnsred by lcal gvernments and nnprfit cmmunity grups. There are several issues pending at the FCC and in Cngress that hld great implicatins fr the success r failure f cmmunity wireless netwrks. The fllwing key debates are discussed in this Plicy Backgrunder: 1. Open Spectrum What all cmmunity wireless netwrks cmmercial (WISP), municipal and cmmunity nnprfit have in cmmn is the unlicensed spectrum they use t transmit signals. Expanding unlicensed spectrum in lw frequencies wuld serve as rcket fuel fr cmmunity wireless netwrks and the expansin f lw-cst bradband access t all Americans. 2. Municipal Wireless The authrity f municipal and ther lcal gvernment entities t establish wireless bradband netwrks fr public access is under attack at the state and federal levels. Despite the lack f cmpetitin in wired bradband fferings and the plethra f scial and ecnmic benefits prvided by cmmunity wireless, pwerful incumbent telecmmunicatins crpratins are lbbying t make municipal wireless fferings illegal. 3. Netwrk Neutrality Establishing multiple bradband paths t the hme by fstering cmmunity wireless bradband netwrks n unlicensed spectrum wuld serve t fend ff plans by incumbent wireline bradband prviders t cntrl the quality and chice f cntent available t cnsumers ver the Internet. OPEN SPECTRUM What It Is Unlicensed, r pen spectrum, refers t segments f the airwaves that have nt been licensed by the gvernment fr exclusive use by ne cmpany r ther entity. (Fr example, TV and radi statins have an exclusive license t bradcast n a particular 6 MHz channel f spectrum in their lcal market; r cell phne licenses, mst f which were purchased at auctin fr their exclusive use.) Technlgies such as WiFi, which are used t prvide bradband wireless data access ver small areas, transmit signals ver unlicensed pen spectrum (e.g., yu dn't need a license t set up a wireless internet netwrk in yur hme r ffice). Unlicensed frequency bands are shared, with n prtectin against interference. Prir t the WiFi bm, they were referred t as the junk bands and are stilled shared by an estimated 300 millin cnsumer devices such as crdless phnes, baby mnitrs, garage dr peners and micrwave vens. * This dcument is updated frm its riginal release in April 2006.
WiFi netwrks are relatively inexpensive t deply, because the equipment is mass-prduced and utilizes unlicensed spectrum, which can be shared by anyne fr free. Multiple WiFi ndes can be set up in a mesh architecture t efficiently spread wireless bradband access ver a large area. The Opprtunity Currently, the amunt f spectrum allcated fr unlicensed, pen access is miniscule cmpared t what is devted fr licensed, exclusive use. As a general rule f thumb, lwer-frequency spectrum is higher-quality spectrum, because these airwaves travel farther and can better penetrate thrugh bstacles like walls and trees. Very little f the mst valuable beachfrnt spectrum thse frequencies that easily penetrate bstacles such as walls, trees and precipitatin, as TV signals d are allcated fr unlicensed sharing (see enclsed fact sheet n Rhetric and Reality f Prgress in Allcating Unlicensed ). The segment f unlicensed spectrum that is currently usable fr WiFi is in relatively high frequency (in the 5 GHz band) which is useful fr fixed lcatin, line-f-sight transmissins, but nt very useful fr mbile r last mile bradband cnnectins (particularly where there is a need t prpagate a signal thrugh trees, walls r ther bstacles). Opening up mre spectrum fr unlicensed use in lwer frequencies wuld make spreading wireless bradband access cheaper and easier. Fewer WiFi access pints wuld need t be installed t cver larger areas -- and cverage quality wuld imprve because signals wuld be better able t g thrugh bstacles (i.e., there wuld be fewer dead spts withut access). Currently, every regin in America has great amunts f lw-frequency spectrum that is sitting empty and unused. These are the unused TV channels. Opening mre lw-frequency spectrum such as the unused TV channels is therefre the rcket fuel needed t facilitate and scale up cmmunity wireless netwrks. Advancements in technlgy wuld allw WiFi and ther wireless bradband devices t sense which TV channels are unused in a given area, and use nly thse channels withut interfering with adjacent TV channels used by bradcasters. These devices wuld be subject t strict technical rules and testing t ensure that they wuld nt disrupt televisin signals and cause harm t thse wh rely n ver-the-air televisin Pending Bills / Regulatins FCC: In 2004, the FCC initiated a Ntice f Prpsed Rule Making (NPRM) that prpsed pening unused TV channel spectrum, n a market-by-market basis, fr unlicensed wireless bradband use. This wuld be f particular benefit t rural and remte areas, which have many unused TV channels, and are in mst need f affrdable bradband access. FCC Dcket 04-186 Fr much f 2005 and 2006, this regulatin was stalled at the FCC due t claims by TV bradcasters that allwing unlicensed devices pen access t empty TV channels wuld interfere with adjacent channels ccupied by TV bradcasters, preventing viewers frm watching thse channels. NAF and a calitin f ver 20 public interest grups, cmmunity wireless prviders and technlgy cmpanies filed multiple sets f cmments in this prceeding, urging the FCC t pen up the currently fallw resurce f empty TV channels fr unlicensed wireless bradband, and rebutting the TV bradcast industry s technical claims f TV interference. In Octber 2006, the FCC repened the prceeding, seeking further input n issues raised during the first rund f cmments, and issuing a prpsed timeline fr the cmpletin f the prceeding and the availability f unlicensed devices in the band. Cmments in this new rund are due in early 2007. 2
Cngress: In January 2007, Sens. Jhn Kerry (D-MA) and Jhn Sununu (R-NH) intrduced the Wireless Innvatin Act, which wuld bth direct the FCC t cmplete this rulemaking prcess n a fixed timetable and t pen up empty TV channel spectrum. This is nearly identical t a 2005 bill by a bipartisan fursme cnsisting f Kerry and Sununu, alng with Sens. Gerge Allen (R-VA) and Barbara Bxer (D-CA), which was apprved in the Senate Cmmerce Cmmittee. Supprted by then-cmmittee Chairman Ted Stevens (R-AK), the bill was attached t cmprehensive telecm refrm legislatin which failed t reach the full Senate. In the Huse in April 2006, Reps. Marsha Blackburn (R-TN) and Jay Inslee (D-WA) intrduced the American Bradband Fr Cmmunities Act. It is unclear as yet what actin will be taken in the Huse n the white spaces issue in 2007. Feedback and stries f actual wireless bradband prviders utilizing unlicensed spectrum are critical in this campaign. 3
COMMUNITY / MUNICIPAL WIRELESS What It Is Cmmunity grups, cities and twns acrss the cuntry are setting up lw-cst, high-speed wireless bradband netwrks utilizing technlgies like WiFi that perate n unlicensed, pen spectrum. These netwrks are relatively cheap and easy t deply (and, as nted abve, wuld be even mre s with mre lw-frequency unlicensed spectrum), and ffer the ptential t bring wireless bradband cnnectivity t areas where it is currently unavailable r unaffrdable. The Opprtunity Sme f the many prmising benefits f affrdable, cmmunity-based wireless bradband access: Rural Access Wireless bradband can cnnect rural and remte areas where wired cnnectins are unavailable r unaffrdable. In a cnnected and mre cmpetitive wrld, affrdable access t high-speed Internet cnnectins will likely determine the business, educatinal, emplyment and cultural pprtunities available in small twn and rural America. Bradband wireless access has innvative applicatins t imprve agricultural efficiency as well. Bridging Digital Divide By making bradband service available and mre affrdable in sme cases even a free municipal services unlicensed wireless netwrks can bring the ecnmic, educatinal and cultural pprtunities f the Internet t thse wh previusly did nt have access. Cmmercial prviders with a bttm-line mtivatin have neither the incentive nr requirement t prvide access fr all. Cmmunity Netwrking Cmmunity-based grups prviding wireless bradband cnnectivity are setting up internal cmmunity web prtals ( intranets ) that facilitate scial netwrking and cmmunity building. Such prtals can be used t advertise cmmunity events, facilitate dialgue abut lcal issues, etc. Examples are OneEcnmy s Beehive, Suthern Califrnia Tribal Digital Village, etc. Lcal Ecnmic Develpment / Cmpetitiveness Businesses large and small need bradband access t perate efficiently, t purchase inputs and t sell utputs at the best prices, wrldwide. Affrdable wireless bradband access can help attract businesses t a regin r prevent them frm leaving. Even in large urban areas, such as New Yrk City, thusands f cmpanies lack access t the cable r DSL bradband access prevalent in residential neighbrhds. Public wireless access can als attract custmers t retail and dwntwn areas t spur mre ecnmic activity. Opprtunities fr Small Business / Alternative t Large Wired Internet Prviders Acrss the cuntry, thusands f small cmmercial wireless Internet service prviders have entered the market t prvide lw-cst bradband access using unlicensed, pen spectrum. This has ccurred primarily in rural areas where wired cnnectins are unavailable r unaffrdable. With access t unlicensed spectrum, small businesses can set up wireless internet services in cmmunities fr a relatively lw cst. With mre, higher-quality pen spectrum, these lw barriers t entry are an pprtunity fr small and minrity-wned businesses t enter the Internet Service Prvider market. Cmpetitin t Wired Services Unlicensed wireless bradband services prvide cmpetitin fr the dminant cable/dsl bradband prviders like Verizn, Cmcast and TimeWarner, as well as fr licensed cellular phne peratrs like Verizn Wireless and AT&T. This nt nly helps bring dwn prices, but can als spur cable and telecm giants t upgrade their wired netwrks and prvide enhanced services. Pervasive Cnnectivity Wireless bradband is nt nly a cmpetitive substitute t wired bradband, but it is als an irreplaceable cmplement. Only wireless netwrks can prvide ubiquitus cnnectivity t enable mbile cmmunicatins and data services. A Haven fr Net Neutrality Cmmunity wireless netwrks spnsred by nnprfits and lcal gvernments are mst likely t preserve cnnectivity principles f net neutrality. Open wireless netwrks if they are f sufficient quality can help put pressure n private bradband prviders whse inclinatin will be t discriminate amng applicatins, services and cntent prviders that pay fr pririty delivery. 4
Lcal gvernments acrss the cuntry frm small twns t large cities and entire cunties have set up r are annuncing plans t establish citywide and reginal wireless bradband netwrks. In mst cases, the gvernments issue a request fr prpsal (RFP) and slicit bids frm private sectr wireless prviders. These RFPs utline requirements fr service quality, cverage and pricing. (Cntracts are in sme ways similar t franchise agreements with cable cmpanies). Many cities plan t utilize shared revenues with the winning bidders t finance digital divide prgrams, which wuld prvide subsidized Internet access, cmputer equipment and/r training t lw-incme cmmunities Citizen participatin is essential in any municipal wireless RFP and cntract award prcess, particularly because sme cities are adpting business mdels that culd result in an inferir frm f public bradband (cmpared t cmpeting cmmercial fferings). The Threat The natin s large telecm prviders have been vehemently ppsed t municipal and reginal wireless bradband effrts fr fear that lw-cst wireless bradband access will cut int their revenues frm wired bradband fferings. They have lbbied at bth the state and natinal levels t pre-empt lcal gvernments frm ffering telecmmunicatins services, claiming that these netwrks amunt t unfair taxpayer-subsidized cmpetitin with the private sectr, and that cmpetitin will cut int their prfits and slw the expansin and upgrade f their bradband netwrks. In reality, mst municipal bradband netwrks use n taxpayer mney whatsever (capital csts are underwritten by the winning bidder), and municipal netwrks have ften frced dminant prviders t expand t areas that they had nt previusly served. Pending Bills / Regulatins (adapted frm www.freepress.net) State Level: At present, 15 states have already passed laws restricting the ability f municipalities t prvide bradband services, six states have successfully fended f such legislatin, and tw states, Indiana and Ohi, have such legislatin pending (see list and details at http://www.freepress.net/cmmunityinternet/=states). Federal Level: As f the beginning f 2007, much f utright ppsitin t municipal bradband, as well as campaigns at the state and federal level t restrict municipal bradband, have been neutralized. Vigrus debate n the issue in 2005-2006 centered arund the fllwing bills (nne f which passed): The Gd In the Senate, Sens. Frank Lautenberg (D-N.J.) and Jhn McCain (R-Ariz.) intrduced S. 1294, the Cmmunity Bradband Act f 2005. This bill wuld have specifically permitted municipalities t ffer lw-cst bradband service. If this bill passed, it wuld verturn all state legislatin prhibiting municipal bradband systems. NAF and allies have been cmpiling success stries f cmmunity and municipal bradband prjects, and are wrking t educate cmmittee members and staff n this issue in the new Cngress, as well as t encurage members t re-intrduce this bill r a similar ne. Als in the Senate, Byrn Drgan (D-SD) and Grdn Smith (R-OR) intrduced a bill, the Universal Service fr the 21 st Century Act, which wuld create a Bradband fr Unserved Areas Accunt that wuld be used t prvide grant funding fr qualifying cmmunity bradband prjects. Universal Service refrm will likely be attempted again in 2007. The Bad In the Senate, Nevada Republican Jhn Ensign intrduced The Bradband Investment and Cnsumer Chice Act, S. 1504, a bill which wuld have preempted lcal gvernments wishing t ffer bradband services t citizens. They wuld first have t ask the private prvider fr permissin. Existing municipal prjects wuld be grandfathered in, but wuld nt be able t expand services. The Ugly In the Huse, Texas Republican Pete Sessins a frmer SBC executive whse wife still wrks fr the cmpany intrduced H.R. 2726, a bill which wuld prevent any city in the cuntry frm prviding their citizens with Internet access if a private cmpany ffers service nearby. 5
NETWORK NEUTRALITY (AKA INTERNET FREEDOM ) What it is Netwrk neutrality is the idea that all Internet users are entitled t access cntent and services, r t run applicatins and devices, f their chice. This is the pen, end-t-end architecture f the Internet as it develped thanks t cmmn carrier regulatin. When the Internet first develped ver cpper telephne lines, with users dialing in thrugh lcal telephne exchanges, netwrks were neutral due t the cmmn carrier regulatry bligatins placed n telephne prviders that is, telephne prviders are required t cnnect any users n a nn-discriminatry basis and allw cnsumers t attach their wn devices (phnes, cmputers) t the circuit-switched telephne netwrk. This ensured that any wuld-be Internet user culd cnnect with any Internet Service Prvider (ISP), wh wuld in turn cnnect the user t the Internet at large. As a result, the early days f the Internet were characterized by vigrus cmpetitin between service prviders, wh cmpeted n the basis f bth price and quality f service. With the rise f cable as a bradband Internet prvider, these dynamics shifted. Cable TV netwrks are nt subject t cmmn carrier bligatins. Mrever, the FCC chse t designate bradband Internet services as infrmatin services, a regulatry designatin that means cable bradband netwrk peratrs are nt required t let users cnnect with any Internet Service Prvider r access any cntent/services and run any devices/applicatins. In June 2005, the Supreme Curt upheld the FCC s decisin t designate cable bradband services as infrmatin services nt subject t cmmn carrier bligatins as part f the crucial Brand X case. This pens the dr fr cable, fiber and ther bradband prviders t kill net neutrality, unless Cngress acts t ensure it. The Threat Large cable and telecm prviders that wn the wired bradband Internet pipes int hmes and businesses are trying t sectin ff the Internet creating a fast lane fr certain preferred cntent and applicatins, while delivering ther cntent and applicatins at slwer speeds, degrading the cntent, r blcking it entirely. The cmpanies that wn bradband pipes int the hme and ffice want t charge certain Internet cntent and applicatin prviders fr faster delivery t users wh rely n them. They intend t favr their wn r affiliated services r cntent by delivering it at faster speeds r simply by blcking cmpeting services. Fr example, Time Warner, ne f the cuntry s largest cable prviders, culd favr cntent prduced by AOL r Warner Brthers (als wned by Time Warner). Or AT&T culd blck their Internet custmers frm using a cmpeting Internet phne service instead f AT&T s wn Internet phne ffering. This isn t just a threat, it s actually happened: In 2004, a Nrth Carlina Internet Service Prvider blcked its DSL custmers frm using an Internet phne service that cmpeted with its wn. In 2005, Canadian telephne giant Telus blcked its users frm accessing a website sympathetic t the Telecmmunicatin Wrkers Unin during a labr dispute. Bth Verizn s and AT&T s CEO s (as well as the CEO f BellSuth, which recently was purchased by AT&T), have expressed interest in making certain Internet cntent and applicatin prviders pay fr use f their pipes. In the future, services like TV and telephne will be delivered thrugh the Internet ver bradband pipes. This stifles bth cnsumer chice and the ability f prducers f new cntent, services and applicatins t serve peple n a level playing field. Access t alternative and cmmunity media is threatened they will be less able t get attentin and be accessed by all. The Internet has the ptential t be an extrardinary playing field where a nncmmercial r independent news/media service culd start up and prvide significant alternatives t mainstream media cmpanies- but withut net neutrality, upstart and independent media surces culd be marginalized. New and innvative applicatins and cntent search engines like Ggle, streaming vide, pdcasting, Internet phne services culd never have been develped r becme ppular if the Internet didn t ffer free and nn-discriminatry delivery. Under the current structure f the Internet, anyne can be an innvatr. 6
In a wrld f cnslidatin, in which the wired bradband cnnectins int hmes and businesses are wned by a small handful f large cmpanies, with very little cmpetitin and cnsumer chice, the temptatin t discriminate grws. The Opprtunity Increasing access t wireless bradband Internet access has the ptential t serve as an antidte t the threat f lsing netwrk neutrality. Lcal gvernments, cmmunity grups and small Wireless Internet Service Prviders can bypass dminant wired bradband prviders that d nt respect net neutrality and lay anther bradband pipe t hmes and businesses by setting up pen, neutral, affrdable high-speed wireless bradband netwrks. This wuld allw cnsumers t access the cntent and applicatins f their chsing, and wuld prvide a cmpetitive threat t the large incumbent prviders f wired bradband pipes, frcing them t remain neutral as well. Yet again, access t high-quality lw-frequency pen spectrum is critical t fstering the develpment f cmmunity, municipal and cmmercial wireless bradband netwrks. Netwrk neutrality ver wireless netwrks is nt a fregne cnclusin. In cases in which a municipality cntracts with a single wireless bradband netwrk peratr, it must take cautin t ensure that the peratr allws pen access t all service prviders and des nt discriminate against any cntent r applicatins. Public cmment in hearings is crucial t ensuring that municipal wireless prjects require net neutrality. Pending Bills / Regulatins While fstering the deplyment f pen, high-speed wireless bradband netwrks can be a de fact way f ensuring net neutrality in bth wireless and wired bradband netwrks, the legislative debate ver netwrk neutrality became heated in 2006 and cntinues int 2007. In 2006, the pr-neutrality grassrts campaign, spearheaded by the SavetheInternet.cm calitin, united a brad spectrum f grups, frm MveOn.rg t the Christian Calitin. A bevy f telecm-industry supprted grups led the anti-neutrality campaign in Cngress and in the mainstream media. In early 2007 at the FCC, AT&T cnceded t net neutrality prvisins fr its wired netwrks as part f its acquisitin f BellSuth. The net neutrality debate resumed in the pening days f the 110th Cngress as Sens. Byrn Drgan (D- N.D.) and Olympia Snwe (R-Maine) intrduced the Internet Freedm Preservatin Act f 2007, which prhibits bradband netwrk peratrs frm deliberately blcking, degrading, r slwing any Internet cntent. Sens. Drgan and Snwe first intrduced this bill in the summer f 2006. In additin, althugh the debate s far has fcused entirely n wired Internet prviders, the New America Fundatin is develping prpsals t ensure that net neutrality bligatins are extended equally t wireless Internet prviders. Since Internet access will increasingly be mbile and pervasive and because wireless netwrk peratrs are using the public airwaves it will be increasingly critical that they adhere t public interest bligatins with respect t net neutrality. 7