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Gigabit Communities Summit Kansas City, Missouri January 13, 2015

Gigabit Communities Summit Kansas City, Missouri January 13, 2015. Seven Important Next Steps for Gigabit Communities. Jim Baller The Baller Herbst Stokes & Lide, PC Washington, DC 20036 (202) 833-1144 Jim@Baller.com. Disclaimer.

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Gigabit Communities Summit Kansas City, Missouri January 13, 2015

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  1. Gigabit Communities SummitKansas City, MissouriJanuary 13, 2015 Seven Important Next Steps for Gigabit Communities Jim Baller The Baller Herbst Stokes & Lide, PCWashington, DC 20036 (202) 833-1144 Jim@Baller.com

  2. Disclaimer This presentation does not constitute legal advice and should not be interpreted as such. For advice on federal, state or local law, please consult qualified legal counsel.

  3. Overview • Protect Yourself from State Barriers to Entry • Comply With All Regulatory Requirements • Take Advantage of E-Rate and Other Funding Options • Use Innovative PPPs to Extend Your Services • Make Most of New Infrastructure Developments • Consider New Opportunities to Acquire Content • Break Into Multi-Tenant Buildings and Developments

  4. 1. Protect Yourself From State Barriers to Entry • About 21 states currently have restrictions • New barrier proposed in Missouri, others possible • Barriers often follow first or significant fiber project • New proposed barriers may affect PPPs – e.g. Kansas • Chattanooga and Wilson proceedings before the FCC • Please file comments! • Join/Support Coalition for Local Internet Choice (www.localnetchoice.org)

  5. 2. Comply With Regulatory Requirements • Depending on services provided, GC’s must comply with numerous federal and possibly State requirements • BHSL Federal Communications Law Compliance Memo • Key requirements: • Universal Service Fund – up to 16.8% of end user revenues at risk! Also, Enforcement Task Force • CALEA • Special Access Data Collection • Privacy

  6. 3. Take Advantage of Funding Opportunities • $7.2 Billion in Federal Broadband Stimulus funding no longer available, but there are many other funding opportunities • Examples: • FCC: Recently expanded E-Rate Program for Schools and Libraries, Health Care Support, Connect America Fund • USDA Community Connect Broadband Grants ($100,000 -$3 million) (Feb 17, 2015) • Department of Commerce economic development grants

  7. 4. Consider Public-Private Partnerships • Many private entities are eager to explore partnerships with GC’s, creating opportunities to expand services, footprint • PPPs come in many shapes and sizes • Examples: Google/KC, Provo, Austin, etc.; C-Spire/Mississippi Communities; UC2B/iTV3; Macquarie/Kentucky; OnLight Aurora/City of Aurora, IL; Ting/Westminster, MD • Key issues: • Impact of state laws (including special PPP laws) • Allocation of financial obligations, risks, rewards • Allocation of operating responsibilities • Enforcement of commitments and remedies • Exit strategies

  8. 5. Consider Potential Benefits of New Developments Concerning Infrastructure • Pole attachments • Federal law provides access rights and rate protection only to “telecommunications carriers” and “cable television systems” – not to pure Internet access or fiber providers Result: covered beneficiaries get faster, cheaper make ready and far lower rates • If FCC reclassifies Broadband Internet Access Service as a Title II “telecommunications service,” providers may qualify for pole attachment benefits • Also new FCC rules on tower siting and wireless small cells and distributed antenna systems – multiple impacts

  9. 6. Explore New Options For Access to Video Programming and Other Content • Today, fiber system operators acquire video content in 2 main ways: (1) for broadcast signals, enter into must carry/retransmission consent agreements with broadcast stations, and (2) for other video programming, contracts with programming distributors via co-ops (NCTC), content aggregators, or individual negotiations • In STELAR, Congress recently expanded an FCC ban on joint negotiations by broadcasters • FCC currently considering giving non-cable systems programming access rights

  10. 7. Break Into the Multi-tenant Market • Multi-tenant buildings and developments often constitute 25-33% of a potential market – or even more • Incumbent service providers often attempt to tie up multi-tenant environments through exclusive agreements of various kinds – e.g., exclusive right to market, exclusive right to provide service, exclusive use of inside wiring, exclusive easements, take-or-pay bulk service agreements, etc. • The FCC has prohibited exclusive cable service agreements and exclusive easements, but it has upheld other forms of exclusivity • State laws, including unfair competition laws, may help

  11. Thanks!Jim BallerBaller Herbst Stokes & Lide, PC2014 P Street, NWWashington, DC 20036(202) 833-1144Jim@Baller.com

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