MTA Commentary for Montana Public Radio – What’s behind the State-University System Broadband Deal?

Last month a short, two-paragraph press release announced that "the State of Montana will be joining the Montana University System’s ultra high-speed telecommunications network which will save the state $500,000 in annual costs."

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Montana Governor Governor Announces Telecommunications Partnership – Saves Money and Improves Services http://matr.net/article-48254.html

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The press release went on to say, "this agreement will not only save money but will help us be better partners in serving the citizens of the state." The agreement between the State and the University System was effective immediately.

This sounds like a great deal: saving money, joining an ultra-high speed communications network that the University System is building and delivering benefits for the citizens of Montana. Who could ask for anything more?

The State’s Chief Information Officer was set to brief the Legislature on the details of this agreement last November but the item was pulled at the last minute from the agenda of the Legislature’s Select Committee on Efficiency in Government. A briefing on this deal was then scheduled for the Committee’s next meeting in January, but again it was pulled from the agenda. And earlier this week, a briefing once again was withdrawn from the agenda on the morning of the Committee’s meeting.

So what do we know about this agreement beyond a two-paragraph press release? How is the state saving $500,000 and what are the details behind the University System’s ultra-high speed network that it is building? What are those benefits that are being delivered to the citizens of Montana? And most importantly, what’s it going to cost?

Without knowing any more details about this project, it reminds me of the times when I return home after finding a great deal at a local store. "Look what I bought, Honey!" I proudly proclaim to my wife. "I just saved us $100!" But then my wife spoils all the fun by asking the brutally logical question, "but, Dear, how much did you spend?"

And that’s the rub. Without exposing this telecom deal to greater transparency, we’re left with the unsubstantiated assertion that we’re getting more for less, but we have no idea what the direct and indirect costs of this deal are.

By connecting the dots, one can speculate that the Montana University System’s ultra-high speed network is part of a $100 million broadband stimulus project that was awarded to the United States Unified Community Anchor Network, or US UCAN. According to their web site, US UCAN "is a community-driven program focused on expanding access to advanced broadband services by community anchor institutions." And what are community anchor institutions? They include "health institutions, public safety, community colleges, schools, community centers, libraries, museums and other public access points that can benefit from advanced broadband Internet services." And by digging a little deeper on US UCAN’s web site, you can find the "Proposed Montana Project" submitted in January 2012 by the University of Montana.

It is here that one finds out that not only the Montana University System appears to be a participant in US UCAN, but other participants include Montana State Information Technology, representing state government and public safety entities and the Health Information Exchange of Montana, a rural health care pilot project which is overbuilding existing network facilities in Western Montana. With this "core group," the Montana Project intends to "focus[] short term activity on what amounts to ‘harvesting low hanging fruit’ represented by community anchor institutions that would be relatively easy to connect…"

Despite four pages of description of the Montana Project, there is not one word about how much this will cost the university system, the state of Montana, or by extension, us. And I’m speaking only of the direct cost of this project. The opportunity cost is far more ominous.

By removing anchor institutions from the public telecommunications network, US UCAN threatens to create a two-tiered telecommunications infrastructure in America: one for universities and anchor institutions, and another network for the rest of us. Our nation’s telecommunications providers have invested billions of dollars–nearly $100 million a year in Montana alone–in providing advanced telecommunications capabilities for all of their consumers, residential and business alike–so-called anchor institutions and mom and pop who live at the end of a 20-mile dirt road.

Removing anchor institutions from existing private networks will deprive them of critical revenues needed to fund past and future investments. In fact, Montana’s existing rural networks will be unlikely to sustain further investment in delivering the current level of services to their consumers–let alone investing in enhanced network capabilities.

Maybe that’s the plan. As Blair Levin, the principal author of the Federal Communications Commission’s National Broadband Plan, recently said, America is focused too much on getting "average" bandwidth to the last 5 percent of the country rather than getting "ultra-high speed" bandwidth to the top 5 percent. Talk about a digital divide! Do our leaders really want two networks? A fancy one for the top 5% and something less for the 95%? Do they really want to starve investment in rural America?

I’m sure that’s not what the State of Montana and the Montana University System have in mind.
Right?

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Geoff Feiss, General Manager

Montana Telecommunications Association

406.442.4316

[email protected]