Three-Ring Binder Clears Legislative Hurdle

 On Tuesday, April 6, Governor Baldacci signed into law LD1778, An Act To Enable the Installation of Broadband Infrastructure.  The act establishes "dark fiber provider" as a category of public utility, making it possible for such a provider to interact with owners of utility poles and other telecommunications infrastructure through practices and procedures already in place for other public utilities.  It appears that this clears the last bureaucratic barrier to construction.

It should be noted in passing that several amendments were crucial to the passage of the measure.  In particular, the introduction of a Broadband Sustainability Fee was crucial to getting backing from FairPoint.  "An entity that purchases, leases or otherwise obtains federally supported dark fiber from a dark fiber provider is subject to the following broadband sustainability fees:  A. During the first assessment period, a monthly fee equal to $3 multiplied by the number of miles of federally supported dark fiber strand purchased, leased or used by the entity during the month; and B. During the 2nd assessment period, a monthly fee equal to $2 multiplied by the number of miles of federally supported dark fiber strand purchased, leased or used by the entity during the month."

The fee will be collected by Maine Fiber when it bills last mile providers and remitted to the ConnectME Authority, which operates under Public Utilities Commission auspices.  ConnectME may retain up to 5% of the fee for administrative and other uses.  The remainder is to be distributed to local exchange carriers, e.g. FairPoint and/or other local independent phone companies. 

As one outside the negotiations that came up with this compromise, I have a few observations:

a.  This sure looks like a FairPoint tax.  Given various frustrations with the company, one cannot help being irked at first blush.  Particularly as the $3.00, and later $2.00, monthly fee will be passed on in some form to purchasers of last mile services.

b.   While it is really hard to come up with a widely acceptable formulation, it is the case that a last-mile provider riding on the Three-Ring Binder fiber has avoided some backbone costs that FairPoint has already expended, or will expend in the future, in order to eventually compete for the same customer.  If a playing field leveler of some sort is called for, at least this one is relatively simple.

c.  For all its ineptitude, FairPoint still constitutes indispensable infrastructure for the lives of many Mainers. 

d.  Hopefully, this accommodation with FairPoint's viewpoint will put an end to the time-wasting and self-defeating sniping that the company has been doing against the project from the beginning.

e.  The most important thing is for the Three-Ring Binder to roll out as soon as possible, and for last-mile vendors to get their ducks in a row and enter the fray of offering consumer service.  Let the wild rumpus begin!