Presented by Jim Baller of Baller Herbst at the Gigabit City Summit, Jan. 13, 2015, in Kansas City, MO.

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

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

3. OverviewOverview
1.1. Protect Yourself from State Barriers to EntryProtect Yourself from State Barriers to Entry
2.2. Comply With All Regulatory RequirementsComply With All Regulatory Requirements
3.3. Take Advantage of E-Rate and Other Funding OptionsTake Advantage of E-Rate and Other Funding Options
4.4. Use Innovative PPPs to Extend Your ServicesUse Innovative PPPs to Extend Your Services
5.5. Make Most of New Infrastructure DevelopmentsMake Most of New Infrastructure Developments
6.6. Consider New Opportunities to Acquire ContentConsider New Opportunities to Acquire Content
7.7. Break Into Multi-Tenant Buildings and DevelopmentsBreak Into Multi-Tenant Buildings and Developments

4. 1. Protect Yourself From State Barriers to Entry1. Protect Yourself From State Barriers to Entry
• About 21 states currently have restrictionsAbout 21 states currently have restrictions
• New barrier proposed in Missouri, others possibleNew barrier proposed in Missouri, others possible
• Barriers often follow first or significant fiber projectBarriers often follow first or significant fiber project
• New proposed barriers may affect PPPs – e.g. KansasNew proposed barriers may affect PPPs – e.g. Kansas
• Chattanooga and Wilson proceedings before the FCCChattanooga and Wilson proceedings before the FCC
• Please file comments!Please file comments!
• Join/Support Coalition for Local Internet ChoiceJoin/Support Coalition for Local Internet Choice ((
www.localnetchoice.comwww.localnetchoice.com))

5. 2. Comply With Regulatory Requirements2. Comply With Regulatory Requirements
• Depending on services provided, GC’s must complyDepending on services provided, GC’s must comply
with numerous federal and possibly State requirementswith numerous federal and possibly State requirements
• BHSL Federal Communications Law Compliance MemoBHSL Federal Communications Law Compliance Memo
• Key requirements:Key requirements:
• Universal Service Fund – up to 16.8% of end userUniversal Service Fund – up to 16.8% of end user
revenues at risk! Also, Enforcement Task Forcerevenues at risk! Also, Enforcement Task Force
• CALEACALEA
• Special Access Data CollectionSpecial Access Data Collection
• PrivacyPrivacy
•

6. 3. Take Advantage of Funding Opportunities3. Take Advantage of Funding Opportunities
• $7.2 Billion in Federal Broadband Stimulus funding no$7.2 Billion in Federal Broadband Stimulus funding no
longer available, but there are many other fundinglonger available, but there are many other funding
opportunitiesopportunities
• Examples:Examples:
• FCC: Recently expanded E-Rate Program for SchoolsFCC: Recently expanded E-Rate Program for Schools
and Libraries, Health Care Support, Connect Americaand Libraries, Health Care Support, Connect America
FundFund
• USDA Community Connect Broadband GrantsUSDA Community Connect Broadband Grants
($100,000 -$3 million) (Feb 17, 2015)($100,000 -$3 million) (Feb 17, 2015)
• Department of Commerce economic developmentDepartment of Commerce economic development
grantsgrants

7. 4. Consider Public-Private Partnerships4. Consider Public-Private Partnerships
• Many private entities are eager to explore partnerships withMany private entities are eager to explore partnerships with
GC’s, creating opportunities to expand services, footprintGC’s, creating opportunities to expand services, footprint
• PPPs come in many shapes and sizesPPPs come in many shapes and sizes
• Examples: Google/KC, Provo, Austin, etc.; C-Examples: Google/KC, Provo, Austin, etc.; C-
Spire/Mississippi Communities; UC2B/iTV3;Spire/Mississippi Communities; UC2B/iTV3;
Macquarie/Kentucky; OnLight Aurora/City of Aurora, IL;Macquarie/Kentucky; OnLight Aurora/City of Aurora, IL;
Ting/Westminster, MDTing/Westminster, MD
• Key issues:Key issues:
• Impact of state laws (including special PPP laws)Impact of state laws (including special PPP laws)
• Allocation of financial obligations, risks, rewardsAllocation of financial obligations, risks, rewards
• Allocation of operating responsibilitiesAllocation of operating responsibilities
• Enforcement of commitments and remediesEnforcement of commitments and remedies
• Exit strategiesExit strategies

8. 5. Consider Potential Benefits of New5. Consider Potential Benefits of New
Developments Concerning InfrastructureDevelopments Concerning Infrastructure
• Pole attachmentsPole attachments
• Federal law provides access rights and rate protectionFederal law provides access rights and rate protection
only to “telecommunications carriers” and “cableonly to “telecommunications carriers” and “cable
television systems” – not to pure Internet access ortelevision systems” – not to pure Internet access or
fiber providers Result: covered beneficiaries getfiber providers Result: covered beneficiaries get
faster, cheaper make ready and far lower ratesfaster, cheaper make ready and far lower rates
• If FCC reclassifies Broadband Internet Access ServiceIf FCC reclassifies Broadband Internet Access Service
as a Title II “telecommunications service,” providersas a Title II “telecommunications service,” providers
may qualify for pole attachment benefitsmay qualify for pole attachment benefits
• Also new FCC rules on tower siting and wireless smallAlso new FCC rules on tower siting and wireless small
cells and distributed antenna systems – multiple impactscells and distributed antenna systems – multiple impacts

9. 6. Explore New Options For Access to Video6. Explore New Options For Access to Video
Programming and Other ContentProgramming and Other Content
• Today, fiber system operators acquire video content in 2Today, fiber system operators acquire video content in 2
main ways: (1) for broadcast signals, enter into mustmain ways: (1) for broadcast signals, enter into must
carry/retransmission consent agreements with broadcastcarry/retransmission consent agreements with broadcast
stations, and (2) for other video programming, contractsstations, and (2) for other video programming, contracts
with programming distributors via co-ops (NCTC), contentwith programming distributors via co-ops (NCTC), content
aggregators, or individual negotiationsaggregators, or individual negotiations
• In STELAR, Congress recently expanded an FCC ban onIn STELAR, Congress recently expanded an FCC ban on
joint negotiations by broadcastersjoint negotiations by broadcasters
• FCC currently considering giving non-cable systemsFCC currently considering giving non-cable systems
programming access rightsprogramming access rights

10. 7. Break Into the Multi-tenant Market7. Break Into the Multi-tenant Market
• Multi-tenant buildings and developments often constituteMulti-tenant buildings and developments often constitute
25-33% of a potential market – or even more25-33% of a potential market – or even more
• Incumbent service providers often attempt to tie up multi-Incumbent service providers often attempt to tie up multi-
tenant environments through exclusive agreements oftenant environments through exclusive agreements of
various kinds – e.g., exclusive right to market, exclusivevarious kinds – e.g., exclusive right to market, exclusive
right to provide service, exclusive use of inside wiring,right to provide service, exclusive use of inside wiring,
exclusive easements, take-or-pay bulk serviceexclusive easements, take-or-pay bulk service
agreements, etc.agreements, etc.
• The FCC has prohibited exclusive cable serviceThe FCC has prohibited exclusive cable service
agreements and exclusive easements, but it has upheldagreements and exclusive easements, but it has upheld
other forms of exclusivityother forms of exclusivity
• State laws, including unfair competition laws, may helpState laws, including unfair competition laws, may help

11. Thanks!Thanks!
Jim BallerJim Baller
Baller Herbst Stokes & Lide, PCBaller Herbst Stokes & Lide, PC
2014 P Street, NW2014 P Street, NW
Washington, DC 20036Washington, DC 20036
(202) 833-1144(202) 833-1144
Jim@Baller.comJim@Baller.com