Committee
on Technology in Government
Michael J. Santorelli, Policy Analyst
Fredy H. Kaplan, Counsel
THE COUNCIL OF THE CITY OF NEW YORK
BRIEFING PAPER OF THE INFRASTRUCTURE DIVISION
Marcel Van Ooyen,
Deputy Chief of Staff
COMMITTEE ON TECHNOLOGY IN GOVERNMENT
Hon. Gale A. Brewer, Chair
December 12,
2005
Int. No. 625-A:
By Council Members Brewer, Boyland, Comrie, Fidler, Gerson, Gonzalez, James, Liu, Nelson, Palma, Recchia Jr., Sears, Weprin, Jackson and The Public Advocate (Ms. Gotbaum)
Title:
A Local Law to amend the New York city charter, in relation to establishing a permanent advisory committee regarding the technical, economic and legal feasibility of using municipal resources to facilitate universal access to broadband technologies and telecommunications and information services within the city of New York.
Charter:
Amends Chapter 48 of the New York city charter by adding thereto a new section 1075.
Introduction
On Monday, December 12, 2005, at 1 P.M. in Council Chambers, City Hall, the Committee on Technology in Government, chaired by Council Member Brewer, will hold a second hearing on proposed Int. No. 625-A, which seeks to establish a permanent and public broadband advisory committee. This committee will be charged with examining the feasibility of using municipal resources to facilitate universal access to broadband technologies and telecommunications and information services within New York City. Those invited to testify include:
· Representatives from the New York City Department of Information Technology and Telecommunications (DoITT) and the Economic Development Corporation of New York City (EDC);
· Donald Berryman, Executive VP and President, Municipal Networks Division of Earthlink;
· Eric Macris, consultant to Current Communications;
· Peter T. Lewis, Executive Vice President and COO, Hispanic Information and Telecommunications Network (HITN);
· Laura Forlano, secretary, NYCwireless;
· Bruce Bernstein, president, New York Software Industry Alliance (NYSIA);
· Howard Robertson, Senior Manager for Northeast Operations, Tropos;
· Frank Puccio, Director of NY Metro Sales, GigaBeam;
· Andrew Rasiej, founder of MOUSE and former candidate for New York City Public Advocate
Background – The Basis for Int. No. 625-A
The Committee’s Ongoing Exploration of Broadband
Over the course of the past two years, the Committee on Technology in Government has been holding oversight hearings on the subject of broadband technology.[1] The main goal of these hearings has been to show that access to broadband is a necessity in this new digital world and that the benefits associated with access are many and diverse. The record established over these many hearings, however, has painted a picture of a stagnant telecommunications market that is resistant to change, slow to innovate and not amenable to universal access to broadband.
Broadband in New York City – A User’s Guide
Broadband refers to a high data transmission rate Internet connection.[2] The usual methods of delivery are through cable lines or a digital subscriber line (DSL).[3] There is also another, newer wireline method – Broadband over Power Lines (BPL) – which delivers broadband through the existing power grid.[4] Recently, however, broadband has begun to be “unwired” as wireless technologies have become a popular means by which broadband can be delivered cheaply and to a large area.[5] The two major methods of wireless delivery are Wi-Fi and WiMAX.[6] Both rely on a system where radio signals from a local area network (LAN) are sent to a receiver attached to a user’s computer. Wi-Fi has a range of 300 feet whereas WiMAX could potentially have a range of up to 30 miles.[7] The competition between these various broadband technologies is termed “intermodal competition” as they provide the same service in a number of different ways.[8]
In New York City, there is a dearth of intermodal competition. Broadband adoption stands at less than 40%[9] and, of that group, the vast majority relies on cable or DSL to get online.[10] The incumbent providers – Verizon, which provides DSL service, and Time Warner, which provides cable modem service – dominate the broadband market.[11] Adoption rates are even lower in the outer boroughs and for small businesses.[12] Yet while the main reason cited for such low adoption rates may be cost,[13] the value of the connection one does get pales in comparison to those in other countries around the world.[14]
Currently, in New York City, broadband delivered via cable modem is slightly faster than that delivered via DSL. Accordingly, monthly charges for DSL are lower than those for cable access. But the value associated with these connections, both for cable and DSL, is relatively low. For example, in New York City, Verizon DSL charges around $38 for a 3 megabit per second (Mbs) connection. This averages out to be around $13 per Mbs.[15] In Japan, however, a 26 Mbs connection retails at around $22 per month.[16] This averages out to a little over $1 per Mbs. Similarly, in France, a 15 Mbs connection retails for around $38 per month, which averages out to be a little more than $2.50 per Mbs.[17] Lower speeds for higher prices does not sit well with consumers[18] and does not enable a user to partake fully in the many benefits a true broadband connection can deliver.
The Benefits of Broadband and the Shortfalls in Broadband Availability
Second, broadband holds the potential to impact the social, educational, medical, and economic aspects of a user’s life. Broadband gives a user more choices for shopping online[22]; provides a user with an outlet to the community[23]; enhances a user’s interaction with government[24]; supplies a user with critical and accurate medical and healthcare information[25]; and affords students the opportunity to supplement classroom learning with at-home multimedia resources. [26]
Third, a digital divide exists between many users and access to these benefits. A recurring theme of some of the committee’s hearings has been that many segments of the population are underserved when it comes to broadband. Two examples include the senior citizen population[27] and the residents of public housing in New York City.[28] Likewise, there appears to be a gap between small businesses in many parts of the city outside of Manhattan and access to broadband technology.[29]
Fourth, New York City can and should do more. As other cities around the country and world have shown, municipal governments can partner with the private sector to enliven local telecommunications and broadband markets. For example, Philadelphia recently announced a partnership with Earthlink to provide affordable wireless access to broadband.[30] Earthlink will fund the deployment and maintenance of the system and will be required to sell access to the system to any interested provider at wholesale prices.[31] This public-private partnership conforms to the principles of “network neutrality,” standards that promote openness of the system in order to maximize consumer choice and lower prices. Many other cities around the country are following Philadelphia’s lead in the march towards universal municipal broadband.[32]
The Need for a Broadband Advisory Committee
New York City lags behind other American cities when it comes to embracing the idea of moving forward on universal broadband. The mayor seems content with the status quo of the broadband market and wishes to leave the possibility of expansion to universal access to the private sector.[33] However, a disconnect exists between the mayor’s vision for telecommunications in New York City and the nature of telecommunications and broadband policymaking. The very dynamic nature of technology advancement requires constant attention and public scrutiny, as nearly all members of the public use telecommunications, technology and broadband regularly. Establishing a permanent and public broadband advisory committee will allow both the mayor and the council of the city of New York to be responsive to the changes in technology and the demands of residents. It can also be used to educate the public on innovations in technology and alert them to alternative suppliers in an effort to stir up demand for intermodal competitors. Increasing consumer choice and giving consumers accurate, unbiased market information will force the market to adapt to demand and competition will ignite.[34]
Changes and Amendments to Int. No. 625-A
The first version of proposed Int. No. 625-A, presented and discussed at a June 10, 2005 Committee on Technology hearing, called for the establishment of a “temporary taskforce to study how affordable broadband access can be made available to all New York City residents, nonprofit organizations and businesses.”[35] The taskforce would last only for a year and be composed of nine members. At the June 10, 2005 hearing, representatives from EDC and DoITT testified that the creation of such a taskforce would be counterproductive, especially in light of the mayor’s ad hoc telecommunications policy advisory group.[36] In response to this and other testimony, the legislation has been substantially revised to incorporate many of the suggestions heard at the hearing.
The current version of proposed Int. No. 625-A seeks to establish a permanent broadband advisory committee that will have a singular goal: to explore the technical, economic and legal feasibility of using municipal resources to facilitate universal access to broadband technologies and telecommunications and information services within the city of New York. Another key difference between versions is the requirement for public hearings on the committee’s findings. This lies at the heart of the current version of Int. No. 625. Many witnesses at the June 10, 2005 hearing adverted to the need for public scrutiny of broadband policymaking. In light of these comments, and the fact that such policymaking will have a direct effect on the residents of New York City, a provision for public hearings in each borough at least once a year has been added. Moreover, the focus of the committee has been honed significantly and a set of requirements has been set out to guide the committee in its mission towards recommending a plan of action regarding universal access to broadband.
Analysis
of Int. No. 625 – A
Section one of the local law sets forth the legislative findings and intent. This section is based on the many hearings the Committee on Technology in Government has held over the last two years regarding broadband.
Section two calls for an amendment to be made to the New York city charter by adding a new section 1075 to chapter 48. This chapter governs the New York City department of information technology and telecommunications. Section two writes out the new section 1075.
The new section 1075 will be entitled “Broadband Advisory Committee.” Subdivision (a) describes the mandate of this permanent committee. It is charged with exploring the technical, economic and legal feasibility of using municipal resources to facilitate the deployment of universal access to broadband technologies and other telecommunications and information services with the city of New York.
Subdivision (b) of new section 1075 outlines the composition of the committee. The committee will be comprised of fifteen members. The speaker of the council will appoint eight members while the mayor will appoint the remaining seven. Each member may be removed at any time by the original appointing authority and his or her replacement shall be filled in the same manner as the appointment of the departing member. The committee will also select a chairperson from among its members and will be deemed established upon the appointment of eight members.
Subdivision (c) of new section 1075 sets forth members’ terms. A member shall will without compensation for a term of three years. At the end of a three-year term, a member may be reappointed. Also, if there are any vacancies during the three-year term, the appointing authority shall fill it within fourteen days.
Subdivision (d) of new section 1075 says that the committee must convene at least four times a year but may meet more often if it deems such necessary.
Subdivision (e) of new section 1075 details the kind of member that the committee ought to be comprised of. Persons with expertise in the areas of business, technology, economics, the not-for-profit and philanthropic communities, and technology, telecommunications, privacy and information law and policy will be looked upon favorably. The appointing authorities, however, are free to appoint whomever they feel is qualified.
Subdivision (f) of new section 1075 sets out the reporting mechanism of the committee. The committee must report its findings to the speaker of the council and to the mayor at least once a year. This report must also be made available to the public and must include, but not be limited to, the following items:
First, the committee must determine which industries and areas of the city need broadband technologies.
Second, the committee must undertake a technical analysis of the many different kinds of broadband delivery technologies, including, but not limited to, Wi-Fi, WiMAX, cable modem, DSL, BPL, and fiber to the home (FTTH). This analysis must include a determination of the feasibility of deploying one or more of these technologies citywide and an evaluation of the security of each.
Third, there must be analysis of various business models that could be used to facilitate the deployment of a municipal broadband network. This analysis should also touch on the possibility of providing affordable access to underserved areas.
Fourth, the committee must analyze local, state and regulatory parameters that might affect what the city could offer and the various business models under consideration.
Fifth, there must be an evaluation of current city contracts for broadband and other telecommunications and information services. In addition, there must be recommendations for new contracts that could facilitate new entry into this market in order to bolster competition.
Sixth, the committee must provide a comprehensive list of research materials used to compile the report.
Seventh, the committee must come up with a set of recommendations based on the findings as to how the city can move forward on the findings.
Eighth, there must be an evaluation of the appropriateness and, if appropriate, the viable means for making available city-owned and public rights-of-way for broadband service providers to locate their facilities.
Ninth, the committee has the power to recommend the establishment of a subcommittee to explore one or more specific business models, broadband technologies or any other topic related to their mandate.
Tenth, the committee must devise possible incentives for telecommunications companies and broadband service providers to deploy affordable access to broadband in underserved areas of the city.
Finally, a timeframe must be set out for the utilization and deployment of any and all technologies and/or business models deemed feasible by the committee.
Subdivision (g) requires the committee to hold at least one public hearing once a year in each of the city’s boroughs to receive public comment on its findings. These comments will be reviewed by the speaker of the council and the mayor and be made available to the public by being posted on the city’s website.
Subdivision (h) calls on DoITT and any other city agency to provide, at the chairperson’s request, any relevant information necessary to assist in the committee’s report.
Section
three states that this local law shall take effect immediately upon its
enactment into law.
Proposed Int. No. 625-A
By Council Members Brewer, Boyland, Comrie, Fidler, Gerson, Gonzalez, James, Liu, Nelson, Palma, Recchia Jr., Sears, Weprin, Jackson and The Public Advocate (Ms. Gotbaum)
A Local Law
To amend the New York city charter, in relation to establishing a permanent advisory committee regarding the technical, economic and legal feasibility of using municipal resources to facilitate universal access to broadband technologies and telecommunications and information services within the city of New York.
Be it
enacted by the Council as follows:
Section 1. Legislative findings and intent. Universal affordable access to broadband technologies and telecommunications and information services is a necessity for every resident, not-for-profit organization and business in New York City. The services delivered using these technologies help people communicate in new and easier ways and get information from the Internet, which is quickly becoming the primary source for information in today’s technology-driven society. Moreover, access to such technologies and services can promote the education of children in New York City schools, serve as a catalyst for the economic growth of New York City, connect New York City residents to government services, and enhance the opportunities available to all New York City residents.
For many New York City residents, not-for-profit organizations, and small businesses, however, a broadband connection is sometimes not readily available and often not affordable. Most critically, a broadband connection is least available and affordable to low-income children and families, senior citizens, not-for-profit organizations and small businesses, particularly those located outside of Manhattan. This “digital divide” limits the social and economic opportunities and quality of life of many New York City residents. Therefore, the city of New York has the responsibility to use its resources to facilitate affordable universal access to broadband technologies and telecommunications and information services so all New York City residents, not-for-profit organizations and small businesses can take advantage of the most advanced technologies available.
Now that broadband has become a necessity, long-term telecommunications policymaking, particularly as to expanding access, becomes even more important. As such, this process must be as transparent as possible. To this end, establishing a permanent and public advisory committee will allow the mayor and the speaker of the council to understand the technology and information needs of its residents, not-for-profit organizations and businesses as well as stay current on advances in broadband technologies and telecommunications and information services. New York City must not be allowed to continue to fall behind other American and international cities in this critical “broadband race.”
§2. Chapter 48 of the New York city charter is amended by adding thereto a new section 1075 to read as follows:
§1075. Broadband advisory committee. a. There
shall be a permanent advisory committee, to be known as the Broadband Advisory
Committee, which shall review the technical, economic and legal feasibility of
using municipal resources to facilitate affordable universal access to
broadband technologies and telecommunications and information services within
the city of New York.
b. The
permanent advisory committee shall be comprised of fifteen members, eight of
whom shall be appointed by the speaker of the council, and seven of whom shall
be appointed by the mayor. Each member may be removed at any time by the
appointing authority and any vacancy shall be filled in the same manner as the
appointment of the departing member was made. The committee shall select a
chairperson from among the members of the committee. The committee shall be
deemed established upon the appointment of eight of its members.
c. The members
shall be appointed within thirty days of the effective date of this section and
each member shall serve without compensation for a term of three years. Members
shall remain until a replacement is appointed but a member may be reappointed
at the end of his or her term. Any
vacancy shall be filled within fourteen days by the original appointing
authority.
d. The
committee shall convene as many times as it deems necessary but in no event
shall it meet less often than four times in every calendar year.
e. The committee shall be comprised of, but not
limited to, persons with expertise in the following areas:
1. Business, technology, and economics;
2. The not-for-profit and philanthropic
communities;
3.
Technology, telecommunications, privacy and information law and
regulation; and,
4. Such other areas as the appointing authorities
deem appropriate.
f. The committee shall report its findings and
recommendations to the mayor and the speaker of the council at least once a
year. Such findings and recommendations
shall also be made available to the general public by being posted on the
city’s website. Such report shall contain, but not be limited to:
1. A
list of the geographic areas of the city, industries such as, but not limited
to, health care, education, media, entertainment, technology,
telecommunications, not-for-profit and any other industries the committee feels
necessary, where the committee deems broadband technologies and
telecommunications and information services are needed;
2. A technical analysis of the feasibility of
citywide deployment of broadband technologies such as Wi-Fi, WiMAX, cable
modem, digital subscriber line (“DSL”), broadband over power lines (“BPL”),
fiber-optics to the home, and other such technologies that provide public
Internet and data access and transmission, including an evaluation of the
quality of physical and electronic security of each technology;
3. An analysis of various business models
evaluating the economic, environmental, legal and technical feasibility by
which the city of New York could facilitate the building, deployment, maintenance
and oversight of any new citywide broadband networks, including the feasibility
of providing affordable broadband access to underserved groups including, but
not limited to, low-income housing residents, senior citizens, not-for-profit
groups and small businesses;
4. An analysis of federal and/or state
regulatory parameters that might affect the services and technologies the city
could offer, as well as business models being considered by the committee,
including specific constraints, unresolved regulatory or legal issues, and
other pertinent regulatory issues;
5. An evaluation of current city contracts for
broadband and other telecommunications and information services, as well as
recommendations for contracts that the city of New York can authorize to new
broadband, telecommunications and information service providers, in order to
encourage competition within the broadband, telecommunications and information
service markets of the city of New York;
6. A comprehensive list of the data, research materials,
and resources used to compile the report;
7. A set of recommendations based on the
findings identified in the committee’s report that the mayor and the speaker of
the council may implement regarding policy suggestions and goals for the next calendar
year, and subsequent years, where appropriate;
8. Evaluating the
appropriateness and, if appropriate, the viable means for publicly-owned
property, including, but not limited to, building rooftops, light and traffic
light stanchions, highway sign support stanchions, bus shelters and underground
conduits, and privately-owned property on, within and below buildings, to be
made available for broadband service providers to locate their facilities.
9. Recommendations for
establishing one or more subcommittees to undertake a more detailed examination
of such matters as specific business models or technologies related to the
deployment of universal access to broadband technologies and telecommunications
and information services;
10. Possible incentives for
telecommunications companies and broadband service providers to deploy
affordable access to broadband technologies and telecommunications and
information services in areas of the city where such technologies are needed,
such as, but not limited to, industries where broadband adoption is low and to
not-for-profit and other organizations that provide public interest benefits;
and
11. An estimated timeframe for the utilization
and deployment of those broadband technologies or telecommunications and
information services deemed feasible by the committee.
g. The committee shall hold at least one public
meeting each year in each of the city’s boroughs to receive public comments
regarding its findings on broadband technologies and telecommunications and
information services. Such comments shall also be made available to the general
public by being posted on the city’s website.
h. The department of information technology and
telecommunications and any other city agency may make available to the
committee, at the chairperson’s request, any and all relevant existing maps,
charts, diagrams, or similar materials showing the city’s existing fiber-optic
and network infrastructure; any studies, investigations, evaluations, reports,
findings, surveys, business or vendor materials or proposals, and/or other
information concerning broadband technologies and telecommunications and
information services.
§3. This local law shall take effect immediately upon its enactment into law.