State Affairs of the 77Th Legislature Hereby Presents Its Interim Report for Consideration by the 78Th Legislature
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C OMMITTEE ON S TATE A FFAIRS REPORT TO THE TEXAS HOUSE OF REPRESENTATIVES 78TH LEGISLATURE STEVEN D. WOLENS CHAIRMAN JEFF BLAYLOCK COMMITTEE CLERK C OMMITTEE ON S TATE A FFAIRS II ■ REPORT TO THE 78TH LEGISLATURE C OMMITTEE ON S TATE A FFAIRS TEXAS HOUSE OF REPRESENTATIVES P. O. BOX 2910 ■ AUSTIN, TEXAS 78768-2910 CAPITOL EXTENSION E2.108 ■ (512) 463-0814 ■ FAX (512) 463-6783 Steven Wolens Sylvester Turner Chairman Vice Chairman The Honorable James E. “Pete” Laney Speaker, Texas House of Representatives Texas State Capitol, Room 2W.13 Austin, Texas 78701 Dear Mr. Speaker and Fellow Members: The Committee on State Affairs of the 77th Legislature hereby presents its interim report for consideration by the 78th Legislature. Respectfully submitted, [Signed: Representatives Steven Wolens, Sylvester Turner, Kevin Bailey, Kim Brimer, David Counts, Tom Craddick, Debra Danburg, Bob Hunter, Delwin Jones, John Longoria, Kenny Marchant, Brian McCall, Ruth Jones McClendon, Tommy Merritt, and Debbie Riddle.] REPORT TO THE 78TH LEGISLATURE ■ III C OMMITTEE ON S TATE A FFAIRS IV ■ REPORT TO THE 78TH LEGISLATURE C OMMITTEE ON S TATE A FFAIRS TABLE OF CONTENTS INTRODUCTION .................................................................................................................. 1 SUMMARY OF RESPONSES TO “TEN QUESTIONS” ................................................................ 7 Question 1: Take Rate.........................................................................................................7 Uses of Broadband.........................................................................................................7 Low Take Rate? .............................................................................................................8 State Actions ................................................................................................................11 Question 2: Goals..............................................................................................................12 Universal Deployment .................................................................................................12 Alternative Goals .........................................................................................................13 Measuring Success.......................................................................................................14 Question 3: Private Sector’s Role.....................................................................................15 Role..............................................................................................................................15 The Players...................................................................................................................15 Changes Needed...........................................................................................................16 Question 4: State’s Role....................................................................................................16 Activist Role ................................................................................................................17 Minimalist Role ...........................................................................................................18 Question 5: Community’s Role ........................................................................................20 Question 6: TIF’s Role......................................................................................................21 Continuation.................................................................................................................21 Changes to Mission......................................................................................................22 Funding Sources...........................................................................................................24 Question 7: Middle Mile Costs.........................................................................................25 Question 8: Broadband Map .............................................................................................27 Question 9: Broadband Technologies...............................................................................28 Technological Neutrality .............................................................................................28 Framework for Competition ........................................................................................29 Rural and Urban Considerations..................................................................................30 Question 10: Success Stories ............................................................................................30 PUBLIC TELECOMMUNICATIONS NETWORKS ...................................................................... 33 TEX-AN.............................................................................................................................33 Other State Networks.........................................................................................................35 Municipal Provision of Telecommunications....................................................................36 OVERVIEW OF BROADBAND DEPLOYMENT......................................................................... 39 Broadband Technologies ...................................................................................................39 Cable Modems .............................................................................................................40 Digital Subscriber Lines ..............................................................................................41 Fixed Wireless and Satellite.........................................................................................42 REPORT TO THE 78TH LEGISLATURE ■ V C OMMITTEE ON S TATE A FFAIRS ISDN ............................................................................................................................42 National Deployment Data ................................................................................................43 FCC Data .....................................................................................................................43 Industry Data................................................................................................................45 Broadband Deployment in Texas.......................................................................................46 Public Access to the Internet..............................................................................................50 CURRENT STATE BROADBAND POLICY.............................................................................. 53 Statewide Telecommunications Initiatives ........................................................................53 Minimum Service Requirements .................................................................................53 Discounted Rates for Public Entities ...........................................................................54 Infrastructure Commitments ........................................................................................55 Texas Universal Service Fund .....................................................................................58 TIF Grants....................................................................................................................59 Current State Regulation of Broadband.............................................................................59 Unbundling Requirements ...........................................................................................60 Rural Deployment Mandates .......................................................................................63 Regulation of Other Broadband Platforms ........................................................................64 FEDERAL BROADBAND INITIATIVES ................................................................................... 65 FCC Proceedings ...............................................................................................................65 Cable Modem Rulemaking ..........................................................................................65 Wireline Broadband Rulemaking ................................................................................67 ILEC Broadband Review.............................................................................................69 Triennial UNE Review ................................................................................................71 Congress.............................................................................................................................74 Tauzin-Dingell .............................................................................................................74 Breaux-Nickles ............................................................................................................75 Hollings........................................................................................................................76 Farm Bill ......................................................................................................................76 TIF BOARD MISSION AND PERFORMANCE ......................................................................... 77 Sources and Uses of Funding.............................................................................................78 Incidence of TIF Assessment.......................................................................................79