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GigaFight
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<p CLASS="storydek">
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<span class="section">News:</span> When a sleepy Midwestern
community tried to treat high-speed Internet like a public utility,
commercial broadband giants spared no expense to win the Battle of the
Bandwidth.
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<p>ONE DAY IN THE FALL OF 2004, Mike Simon was interrupted by a phone
call that he still remembers well. The caller was a pollster, who
asked a dozen or so questions related to the local government’s plan
to build a broadband network. The questions became increasingly
annoying. Then came the kicker: “Should tax money be allowed to
provide pornographic movies for residents?” the caller asked. “It was
just blatantly a push poll,” says Simon, a landlord and entrepreneur
in a Chicago exurb called the Tri-Cities. “When I asked, ‘Who are you
representing?’ they just hung up.”</p>
<p>That pollster, it was clear, was part of the strong resistance that
had mobilized against the community’s broadband plan. The Tri-Cities,
like hundreds of other cities and towns around the United States, had
had difficulty getting high-speed, high-quality, competitive Internet
service from the major providers. So, like other cities, it came up
with a solution, and in the process aroused the attention of
giants—the incumbent broadband providers SBC and Comcast.</p>
<p>The term “broadband” refers to high-capacity data networks, often
made up of fiber-optic cables that run through underground pipes. The
central nervous system of today’s communications systems is built of
these high-speed cables, which deliver everything from HBO and ESPN to
phone calls, DSL, and cable Internet access. The core of that network
has been in place for years, but many of the extremities extending to
more distant communities have yet to be constructed. Companies that
own the infrastructure have been making money in densely populated,
upper-income areas where they can win lots of customers per mile of
cable. But they’ve dragged their feet when it comes to reaching
markets they consider less lucrative. </p>
<p>In the places they do serve, companies like BellSouth, Qwest, and
the local phone companies are often essentially alone in the DSL or
cable markets and charge fat, monopolistic fees. In Iowa, for
instance, where Iowa Telecom has skimpy competition, users pay $169.95
for their monthly service, compared with a typical fee of $40 in New
York City, where upward of six providers compete for high-speed
customers. Half of rural households say they don’t have high-speed
Internet access because it’s either unavailable or too expensive.</p>
<p>Yet even as the corporate leviathans have neglected outlying areas,
they’re waging fierce battles to prevent local governments from
filling the gap. By the time the Tri-Cities fight was over, in late
2004, citizens like Simon were shocked by the hardball played by SBC
and Comcast in staking out Tri-Cities turf. “This was the epitome of
corporate greed,” says Simon, “where you have big companies trying to
put one over on the little people.”</p>
<p>Founded more than 150 years ago along a scenic stretch of Illinois’
Fox River, the Tri-Cities–Geneva, Batavia, and St. Charles–are in many
ways the heart of the mythical American heartland. Affluent and
Republican, they offer excellent schools, civic pride, safe streets
lined with Victorian houses. When Batavia wanted a brick walkway along
its riverfront, citizens volunteered eight years of weekends to lay
one. The cities each run publicly owned electric utilities, and the
locals boast about low rates and reliability.</p>
<p>That spirit of self-reliance inspired the local broadband effort
that came to a head in 2003. Forty-five miles west of Chicago, the
Tri-Cities (population 75,000) host several sizable employers like
Suncast Corporation, Flinn Scientific, and the Fermi National
Accelerator Laboratory. But when it came to the info-superhighway, the
cities were in the deep woods. Geneva’s City Hall fielded almost daily
complaints from people frustrated with slow Internet access. Small
businesses were paying as much for T1 lines (which deliver data
roughly at the speed of a cable modem) as they were paying for rent,
and citizens were stuck trying to cram megabytes through dial-up
connections. Being in the Midwest, people were familiar with the fate
of 19th-century towns that were bypassed by railroads: “They just
shriveled up and disappeared,” says resident Annie Collins.</p>
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