Legislature(2007 - 2008)
03/13/2008 09:05 AM House CRA
| Audio | Topic |
|---|---|
| Start | |
| HB404 | |
| HB388 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 388-ALASKA BROADBAND TASK FORCE 9:33:03 AM CO-CHAIR FAIRCLOUGH announced that the next order of business would be HOUSE BILL NO. 388 "An Act establishing the Alaska Broadband Task Force; and providing for an effective date." REPRESENTATIVE DAVID GUTTENBERG, Alaska State Legislature, speaking as the sponsor of HB 388, began by relating that in November 2006 he received a letter from his Internet provider, which also provided television services, that it was leaving the state. December 31st television and Internet ended and he was left only with dial-up from his telephone provider. He said that he was without Internet service for over a year. Upon reviewing the matter, Representative Guttenberg said that he discovered that in the Fairbanks area there were over 2,000 people without service from various providers. The comments from surveys he conducted in various arenas were that service was slow, such that commerce was inhibited, folks couldn't work from home, and students couldn't perform research. Yet, no provider was trying to expand service to this group that had no service. Therefore, he began working on legislation. Although the state has little influence on Internet service, there are lots of things the legislature can do. Representative Guttenberg then discovered that legislation establishing a task force had passed out of the legislature in 2003, but that task force only produced a small PowerPoint. In February 2008, the Institute of the North and the University of Alaska Anchorage held a forum on this issue as well. REPRESENTATIVE GUTTENBERG explained that he is trying to determine what economic opportunities have been missed with regard to bringing Internet service to all Alaskans. In rural Alaska, Internet is only available via E-Net in the schools. This legislation attempts to bring together a couple of legislators and the user groups in order to determine what the world is. This year Steve Haagenson, as chief executive officer of Golden Valley Electric Association, established an independent company that provides wireless Internet service as AT&T. However, those two are only looking at the small market, not the big picture. This legislation, on the other hand, has huge implications for the entire state. The goal is to define where the state is currently, where it wants to go, what needs to be done, and allow industry to come in and plug the holes and look over the horizon to bring Alaska to the forefront of the industry. 9:39:48 AM REPRESENTATIVE DAHLSTROM asked whether the sponsor has spoken with large telecommunication companies in the state. REPRESENTATIVE GUTTENBERG replied yes. After asking companies if they plan to build-up their systems, the answer was no. He indicated his understanding that the companies are "maxed out." However, AT&T Cellular One is doing considerable things, including entering the wireless market in Fairbanks. 9:41:39 AM CO-CHAIR LEDOUX, referring to page 1, lines 12-14, inquired as to the existing barriers to broadband deployment. REPRESENTATIVE GUTTENBERG identified barriers such as equipment limitations and physical/geographical problems. 9:42:58 AM CO-CHAIR LEDOUX asked then if the task force may recommend subsidies. She related her belief that existing utilities must be looking into this and if there is money to be made they would move forward. If the utilities don't believe there's money in this area, then they likely believe that a market isn't economically viable. She asked if the sponsor has heard from the utilities that there are other problems beyond economics. REPRESENTATIVE GUTTENBERG related that in conversations with those other than utility companies, he has discovered [difficulty] with the Universal Service Fund. He related his understanding that instead of building out, the utilities are merely building up what already exists. Representative Guttenberg specified that he isn't looking to recommend any subsidies, but rather to define the issue/problem, where that issue/problem exists, and provide opportunities. However, some in Congress say that if an entity receives the Universal Service Fund, then it should build out its system rather than build up its existing system. Representative Guttenberg said that he doesn't have any preconceived ideas of where this will go. REPRESENTATIVE DAHLSTROM, drawing from 15 years of telecommunications experience, related that other things to consider are distance and terrain, weather, the amount of permafrost, whether the wires will be hung or cable buried, and access for maintenance. She recalled that when White Alice, Alascom existed, the federal law mandated that it provide service to communities with 25 or more residents, no matter the cost. She related that the aforementioned service was provided at a financial loss to the company, at times. She said, "But because of the federal laws and some subsidies that they were receiving, ... that's what was done." The Universal Service Fund is difficult to follow, she noted. Representative Dahlstrom praised the intent of HB 388, but emphasized the need to work with the Regulatory Commission of Alaska (RCA) and those in Washington, D.C., as there may be the need to request some changes to the Universal Service Fund. 9:46:56 AM REPRESENTATIVE GUTTENBERG pointed out that coverage in the state is so irregular and inconsistent. For example, last year fiber optic cable was being installed from Kenny Lake, which had [fiber optics for 10 years], to Chitna. However, he had no coverage at his home in Fairbanks. 9:47:44 AM REPRESENTATIVE CISSNA related that in 2000 she was a member of the House Special Committee on Economic Development, International Trade and Tourism, which reviewed what was happening in the state. At that point the state was beginning to see what was happening globally and there was a state contract for telecommunications. Furthermore, there was extensive training for rural teachers to help them teach in remote communities that were to receive Internet access. There were discussions with the local telephone companies to find ways in which to "help fit them into the picture." Representative Cissna emphasized that [broadband service] in Alaska can be done and done from modest communities. She then requested comment regarding what the state is doing that "this can fit into as well." REPRESENTATIVE GUTTENBERG replied he's not able to address that. CO-CHAIR FAIRCLOUGH announced that although she's doesn't want to hold HB 388, there is House floor session today and people on-line who would like to testify. She said she didn't believe the legislation would be able to move forward if the testimony as well as the additional dialogue is allowed. 9:50:55 AM CO-CHAIR FAIRCLOUGH then opened the public testimony. 9:51:04 AM RICH GAZAWAY, Administrative Law Judge, Regulatory Commission of Alaska (RCA), Department of Commerce, Community, & Economic Development (DCCED), said he would provide some insight into efforts to deploy broadband throughout Alaska. He related that one effort is to administer a federally funded broadband grant. That program has some restrictions in the appropriations language such that it only allows funding for areas without local dialup or broadband access. Therefore, if a community has a dialup connection, it can't receive funding. Although there have been efforts to amend the legislation such that areas with poor local dialup connections and no broadband access could receive funding, it hasn't yet been acted upon. Also, the Federal Communications Commission (FCC) has an open docket regarding the expansion of the Universal Service Fund to include a broadband fund. 9:53:23 AM BEN ELLIS, Managing Director, Institute of the North, related the Institute of the North's support for HB 388. He informed the committee that the Institute of the North and the University of Alaska - Anchorage held a telecommunications workshop in February. There were 35-40 participants at the workshop and all of the providers were represented. Furthermore, user groups, including those from the Native community were present. More than 40 states use this approach, he noted. 9:54:25 AM BRUCE JOHNSON, Director, Quality Schools/Quality Students, Alaska Association of School Boards (AASB), related AASB's support for connectivity, both for families and young people. 9:55:05 AM ALEX HILLS began by informing the committee that he is the owner of a consulting practice in Palmer that specializes in hi-tech product development, particularly wireless. He further informed the committee that he holds a faculty appointment as distinguished service professor at Carnegie-Mellon University, specializing in telecommunications policy, particularly as it relates to deployment in rural and remote areas. He noted that he had the privilege to chair the earlier mentioned workshop held in Anchorage. As has been mentioned, representatives of all the major telecommunications providers were there as well as many others interested in telecommunications. There was general consensus that broadband service is badly needed for economic development, health care delivery, delivery of quality education, and participation in the mainstream economy and society. It was clear that broadband development in Alaska is lagging, both when measured against other states and other parts of the world. He then reflected on the 1970s when Alaska gained an understanding that basic telecommunication services, which meant radio, television, and telephone service, in rural Alaska were lagging. Due to the leadership of then Governor Jay Hammond and others, Alaska dramatically improved and provided basic services throughout the state within a few years. He noted that he was privileged to participate in that effort as Alaska's chief telecommunications official under Governor Hammond. Now basic services increasingly can be defined to include broadband or high-speed Internet, and thus it's once again time for dramatic action by the state to bring the state, particularly rural residents, up to the international standard for basic service. Mr. Hills suggested that HB 388 is only a start, not an action plan as it only establishes a task force to propose a plan. Still, Mr. Hills suggested that the committee advance HB 388. 9:59:17 AM STEVE SMITH, Chief Information Technology Officer, Office of Information Technology, University of Alaska Fairbanks, related support for HB 388. He opined that broadband technology is as critical in this age as roads, power, and water treatment are for the economic development, health, access to government, and education of all of Alaska's communities. There are 33 other states with broadband legislation, 40 states that have statutes involving broadband. Broadband is something on which everyone needs to work together. Although the carriers are doing their best, they face technical, economic, regulatory, and resource barriers. Furthermore, basic Internet service doesn't exist throughout the state, let alone the broadband services coming. There needs to be a comprehensive plan to work together to move forward [with regard to telecommunications]. In conclusion, Mr. Smith reiterated his support for HB 388. 10:01:03 AM JIM ROWE testified in support of HB 388. As mentioned earlier, there needs to be a thorough discussion of broadband accessibility, even in the face of the challenges in infrastructure and economics. He informed the committee that the Alaska Telephone Association has interest in this matter, as highlighted by its annual meeting in Girdwood. One of the agenda items of that meeting is a discussion of HB 388, which Mr. Smith will lead. There will also be a representative from Connected Nation, Inc., who will make a presentation based on Kentucky Connect, which has been a national example for bringing broadband to rural areas. From the Anchorage Daily News article titled "Web Traffic Swelling to a Slowdown," he highlighted the following quote: "Digital traffic on the global network is growing about 50 percent per year." The aforementioned demonstrates the worldwide demand, he said. In conclusion, Mr. Rowe said that he looks forward to participating with the proposed task force. 10:03:08 AM CO-CHAIR FAIRCLOUGH announced that any testimony can be sent to either committee co-chair to be distributed to all committee members. She then announced that the public hearing would be left open for HB 388. [HB 388 was held over.]
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