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Democratic Digital Infrastructure

Democratic Digital Infrastructure

Common Wealth & Democracy Collaborative Infrastructure Digital Democratic May 2020 Mathew Lawrence ­Thomas M.Hanna& in the UK and US Building a21st network century

recycled Paper printPlease on and Democracy Collaborative Wealth Common by Produced Ink use. and mininimize paper This PDF to designed has been 2 ­Thomas M. Hanna & Full Fibre Future: Mathew Lawrence Digital infrastructure for the 21st century exposed by the coronavirus lockdown. coronavirus the by exposed access and quality of connection have been In both countries, sharp digital in divides a connection with of speeds at least 250Mbps. halfnearly -do not the have to country access while approximately 133 million people - to the minimum speed broadband connection the US, 21.3 million people do not have access of households have full-fibreconnection. In fixed broadband infrastructure, and only 13% total its in connections fibre of proportion of 37 countries by the assessed OECD for the poorer areas and marginalised groups. excluding provision, pick cherry companies and digitalof essential redlining services as and governance to ownership undemocratic returns over investing in infrastructures, vital shareholder prioritising from problems, corporations. This, in turn, has created shared of, for-profit of anbenefit oligopolistic set by, undertaken predominantly and to the to digitalapproach infrastructure development market-led a thread: common important one in the US and the both UK, share at least experiences between in this paper explored to ownership and control are vital. infrastructure approaches new development, rely. To digital and democratize accelerate vastits array of information technologies the 21st which upon and economy century infrastructure: the and core assets services in the UK and US, explores the future of digital public ownership democratic four on modules Summary benefits of such a transformation - from a and environmental economic The design. innovative by and democratic preserving, rights- is sustainable, privacy-enhancing, to all, connection world-class that provides model in delivering This paper, it. the first of the of the for-profit, inadequacies corporate forneed reliable high-speed and shone abright spotlight on both the vital We to need build adigital landscape The result: the UK is ranked 35th out The global spread of Covid-19 has While there are important differences differences important are While there goals and principles: and goals must rooted be century in the following key foundational digital infrastructures of the 21st the of public ownership democratic for to secure these we make benefits, casethe home working -are extraordinary. In order carbon dioxide as emitted a result of better 2030 intonnes the and UK, fewer 360,000 of retrospectively to those ends. to those retrospectively the for UK and US recommendations policy governance. What follows are aseries of and ownership underpinned democratic by and 5G 21st – as avital public century good, and maintenanceconnections optic fibre of spectrum, cloud infrastructure, and the rollout including – infrastructure digital the right and organising a as connectivity digital propose moving in the direction of treating in of the direction moving propose £63 billion to gross boost value added by 1. 3. 2. 5. 4.

making, and grant them astake in the in decision to directly engage people can function tools as important to allow accountability, and transparency, participation, and workers citizens through Empower accessible universally made society we all to need participate fullyservices in for all, with the foundational and goods that should met be at free the point of use connection. Connectivity is a basic need reliable,high-speed, full-fibre based to able access is ensuring everyone and divide thedigital overcoming to full-fibre all,Provide access encryption, and collective rightsencryption, to data. as well as sovereignty, data privacy, as to what should data collected, be strategy, managementdevelop data an ethical to over data, and their power own haveEnsure control people that resilient decarbonised. and efficient, role in supporting new systems that are that digital technologies play can acritical New Deal, and aGreen sustainability toLink ecological digital infrastructure alternatives. for-profit democratic with corporations replacing by power and political concentrationReduce corporate world that the internet is helping to build. To secure these goals, we therefore which establishes limits so digital technologies technologies digital so so so 3 Common Wealth & Democracy Collaborative tasked with rolling out a100% full-fibre infrastructure company should be created has paid out over £53bn over since out paid has in dividends back into rolling Group BT out the network. the company shoulddividends, reinvest profits currently Rather does. than paying ISP just for providers to as access the network, investment could come from charging private infrastructure. of funding Aportion for digital 21st a building century revolution’ is prosperous and with just, a‘retrofitting be central to a post-covid that recovery the nation should to connect mission A out the into core network) public ownership. (and of Group BT the relevant parts to rolling by 2030, on taking based network Openreach companies. competition" private of among an oligopoly via "enhanced than cost lower significantly a nationwide full-fibre faster network and at would deliver provider monopoly a suggests by 2030. network a mission full-fibre to deliver anationwide company with publicA new infrastructure — The UK government’s analysisThe own (Unitedproposals Kingdom) Digital infrastructure policy [1] To that end, anew public Decommodifying connection Decommodifying the alternatives. more affordably,equitably, and speedily than infrastructure digital 21st century foundational invest. to borrowing advantage, take should company thepublic infrastructure requirements, Capex near-record lows; to finance the remaining lower than for private companies, and is at public borrowing for investment is notably to deliver full-fibre over Thecost of 10 years. alone cover over 16% of the Capex required eliminating from savings could dividends logic should reversed; be indeed,the annual fall as shareholder payouts have risen. This fixed its seen investment and R&D spending communicate, play The effects andof work. privatisation, democratic public ownership can build a can public ownership democratic so and access, coverage ensure universal into to public sector ownership, telegraph and Asquith industry took the a fulfilling life in the digital age: connect,to it is foundational to our ability to lead as a21st human century right, recognising Just as Gladstone nationalised the nationalised Gladstone as Just Internet should access organised be [2] and over the past decade has has decade past the over and 4 ­Thomas M. Hanna & Full Fibre Future: Mathew Lawrence Digital infrastructure for the 21st century control of digital infrastructure, including: including: infrastructure, digital of control and democratic the accountability transform ownership should accompanied be by steps to infrastructures digital of control and democratic Ensuring accountability through taxation. general the operating and connecting costs covered universal, decommodified connection, with enable connection to organised be on based organised to maximise shareholder value -can companies than by rather - the infrastructure of public complete, ownership is network the Once UK’spublic service. full-fibre all free at the point of use as a tax-funded full-fibre internet available connection to agenda, the ultimate goal should to be make of an ambitiouspart universal basic services primarily through the market. To that end, as to broadband aright, not something delivered - have underscored the to need make access exacerbated social and economic inequalities toaccess and quality of broadband has over divide digital a where - coronavirus • • • • an online space for everyone living in the living everyone an for online space WeDecide.gov.ukcalled as function could equal internet an online access, platform priorities: digital and Local and deciding National debating for digitalA new platform environmental damage. damage. environmental technologies: to monitor fibre-based framework regulatory expanded An cutting edge software. technologies such 3D as printing and as well as shared to new access as database management and coding, by supportingdivide digital skills, such groups, can help bridge the digital socio-economic differentand generations are broadly accessible, both to people of "maker labs" spacesthat and co-working initiatives: Funding community for and support digital infrastructures are used. UK to debate and decide priorities for how invasive surveillance, social control and social invasive surveillance, built on top of fibreincluding networks, technologies the of harms potential the of in considerations mirrored should be fibre roll out to ensure of access equity The monitoring of and strategy for The extension of democratic of extension The

Publicly-owned or cooperative cooperative or Publicly-owned With full-fibre guaranteeing

Overturning state-level pre-emption laws pre-emption state-level Overturning on public and broadband community owned restrictions legislation state-level that ends so choose, we recommend passing federal they if networks broadband owned publicly communities retain the to authority establish — • for social and political communication.” and political for social funded journalism, and develop resources another, for publicly one with support provide architecture to citizens enable to interact platform developing surveillance-free a with BDC, as set out by Dan Hind, “would tasked be collectively by all residents of the country, the owned property, common A established. a British Digital Cooperative should be principles oligarchic over surveillance, and egalitarian democratic on based sphere good common the for spectrum and Cooperative Digital A British are continually being produ being continually are government that data already and exist, that andhost perhaps the process vast troves of infrastructure’ should created be and to used public a ‘cloud option second, And utilities. then regulating cloud providers as key public and businesses theiroff cloud infrastructure requiring major tech companies to separate over the direction of the economy. by First, significantpower revenue and infrastructural Building apublic infrastructure cloud infrastructures, asource of both very computing cloud of dominance their is this urgent thanmore ever. element of critical A to challenge the power of ‘Big Tech’ will be power of the the universal platforms, need being the consolidation and the reach and needs to reach net-zero rapidly and justly. infrastructure the digital on Commission National the Infrastructure should advise The on Committee Climate Change strategically ajust to transition. support 5G infrastructure planned must be and development of broadband and decarbonisation: to drive infrastructure Digital In to ensure that order local (Unitedproposals States) Digital infrastructure policy To build adigital and communicative With one likely of Covid-19 effect The installationThe ced. [3]

5 Common Wealth & Democracy Collaborative networks broadband municipal and community fundingFederal to develop and operate public or private) spectrum receiving auction that any local media station or company (either and journalismmedia local funds to support trust and local State in companies, real estate, and other assets. US states) and invest (with appropriate criteria) (asnumerous other countries several well as funds. or a democratically managed public trust fund in deposited auctions be spectrum wireless from all, not revenue derived if federal most, proceeds auction spectrum funds wireless for public trust Democratic entities. nonprofit or to public, cooperative, exclusively public and investments broadband resources direct governments that state recommend Further, requirements. we regulatory federal infrastructure, and help navigating state and operational backroom management, project to establish public planning, networks, seeking communities and residents for local include and organizing educational support could latter The networks). broadband owned publicly the public new and create educate level, communities use these resources to broadbandowned (and networks at the local publicly local, of thedevelopment to support programs assistance technical and funding establish governments that state recommend networks broadband municipal for and community programs funding andState technical assistance networks. broadband owned cooperatively or municipalities that are seeking to build public level. local the at networks like the sovereign wealth funds that exist in recommend developing ensuringlegislation developing recommend directing that legislation pass Congress that provides funding for communities and legislation federal passing recommend we corporations, telecoms large of and control affordability, as well as reduce the power At the state and level, local we recommend we level, At the federal At thesubnational we level, In order to increase and access

[5] These funds could organized be [4] computing services into apublic utility services computing and up turn big-tech cloud Break investments. subsidize and other public needed services to cross- innovation, revenue and generate andthat stimulate would lower costs pressures competitive concentration, provide market failures, reduce corporate power and help address could communications sector “public a of existence option” in the wireless company.owned The publicly own government its create the federal that background, recommend economic we Americans regardless of geography and socio- towireless all broadband and 5G service sector and provide accessible and affordable sector communications inA public wireless the option or public media and journalism. independent to funding local, dedicated trust those funds into ademocratically managed of portion a transfer consolidating operations in exchangeproceeds for shutting down or enclosure to a digital commons. commons. digital to a enclosure and moving owned, from conditions of private deployed is infrastructure digital how reshape to should seek public Instead, policy divide. digital deep a and control, and concentration out of fibre/broadband, corporateincreased for private investors, have to led the slow roll- utilities. owned publicly governed democratically and decentralised organized as should be services these divested, Once business. infrastructure/computing cloud their divest mandating that companies size over acertain to break up Big Tech companies by specifically competition in the wireless communication communication wireless the in competition while delivering arich stream of dividends US and UK in recent -and decades which, in digital infrastructure of thedevelopment that haveapproaches dominated the the “regulatory state” and market-oriented But delivering it will require moving beyond In order to provide badly needed badly In to provide order Another digital world is possible. developing legislation We recommend

6 ­Thomas M. Hanna & Full Fibre Future: Mathew Lawrence Digital infrastructure for the 21st century suggest that universal to access even a bare asemitted aresult. tonnes fewerand 360,000 of carbon dioxide million fewer commuter trips ayear in the UK have environmental vital with300 benefits, tofull-fibre A find work. would network also people million a half almost help and baseline, number of new home workers relative to 2019 during isolation. the internet to socialise and communicate people of all ages are increasingly reliant on whileto continue home, their from studies millions attempting now are students of status, to teleworking shifted have been workers of and regions are locked down, tens of millions model in delivering entire As it. towns, cities, infrastructures. digital wire-based copper outperforming far television) distances, long over high at speeds those related to the internet, telephone, and of large quantities of information (including that the transmissionenable infrastructure These fibreare critical of networks. pieces and national regional, local, are these among Foremost activity. economic century 20th of the backbones that were systems electricity and networks, telephone tracks, railway modern equivalent of the interstate highways, Intro 1 £63 billion by 2030, enable million an extra would provide agross value of added uplift that in the UK a nationwide 100% full-fibre estimates Research Business & Economics for Centre the immense: are infrastructures transformative upgrade in our digital the of the for-profit, inadequacies corporate forneed reliable high-speed internet and shone abright spotlight on both the vital information rely. the are technologies They economy and vast arraycentury its of the 21st which upon and services assets Similarly, studies in the United States a of benefits economic The The global spread of Covid-19 has core the are infrastructures Digital [6] home duringhome lockdown. Internet households the able most to at stay correlated, with high income, high speed relief: income and home Internet are access Covid-19 this has cast digital in divide stark inequalities. and economic social, regional, and exacerbates development limits economic that divide digital a deep and deployment fibre by private investment, has to led slow rates of onbased afull-fibre network. infrastructure -universal, affordable, and fast, building on depend 21st a digital century Put simply: a future of will shared prosperity [7][8] billionaround $22 ($219 billion 15 over years). could produce annual economic benefits of minimum internet connection broadband widening economic and divides. digital widening economic peopleaffects of color, exacerbating and disproportionately this access of lack areas, connection, primarily due to cost. some urban areas do not have any internet instance, percent 30 nearly of households in is available, unaffordable. it is often For [10] with of speeds at least 250Mbps/25Mbps. -do not have tocountry aconnection access 19 epidemic (and that some districts will not by school districts in response to the Covid- remoteaccess learning opportunities set up to unable be likely will families, income areas in the US, along with those in low Post revealed that many students in rural in theWashington article recent a instance, For disadvantage. groups a at socioeconomic Mb. per cost average and 56th speeds, when it tocomes as low as 15th in the world when it comes to recent estimates, the United may States be other countries. advanced According to far slower and more expensive than in most top of this, the internet in the United is States around 133 million people -nearly half the speed broadband connection; meanwhile, dopeople not have to the access minimum full-fibre infrastructures,with expansion led of to the development approaches oriented places certain industries,places regions certain and Moreover, internet high-speed when even Current infrastructures are not enough. enough. not are Current infrastructures

In the United 21.3 States, million However, in the UK and US, market- Unavailable unaffordable or internet [13] [9]

[11] In such [12] On 7 Common Wealth & Democracy Collaborative Only an estimated 13.6% of UK households progress. substantial deliver to failed has such as different geographies and population different as such and geographies fixed broadband infrastructure, total its connections in fibre of the proportion household. size the for adjusted of housing costs, before 70%with of the median income household broadband internet at home, defined as those just 47% of those living on a low income use coverage of greater than 60%. 10 while just coverage, have constituencies 5% have below full-fibre constituencies 650 digital divides: more than half of all of the UK’s figurewhich marks sharp regional and income had full-fibreconnection as of May 2020, not commercially viable. “hardest-to-reach” 20% of premises that are £5 billion the connecting for committed market, though the UK Government has throughinvestment competitive organised a is primarily being undertaken by private 2025, the building of afull-fibre infrastructure by network gigabit nationwide capable a disconnected.” effectively may be have networks older who disruption and those little very see probably able to afford willthe high-quality networks be exacerbated – people that have been will richer… get [and] inequities historic will rich “the Christopher Mitchell writes, expert broadband As and slow-downs. bottlenecks, behind their peers. wealthier these students will likely fall even further internet access). have children not of do who percentage large implement digital learning at all due to the these inequalities. accessible internet is only likely to exacerbate by the virus. affected medically, economically, and socially is who concerning disparities socio-economic isStates already revealing racial stark and fromdata the Covid-19 epidemic in the United of 37 countries by the OECD assessed for congestion, to increased inferior networks and older exposing networks, broadband are likely to put increased demand on Overall, the UK was ranked 35th out In the where UK, the target is to build Moreover, the Covid-19 shut downs [21] [16]

[17] The lack of affordable and [14] If school closures persist, persist, closures If school [18] This approach approach This [15] [22] [20] Preliminary Preliminary and factors Strikingly, Strikingly, [19] a wireless spectrum. the and infrastructure computing cloud otheron key two areas of digital infrastructure: primarily on full-fibre broadband,will we touch democratic. enhancing, innovative rights-preserving, and digital landscape that is sustainable, privacy- profit -a business model thatwill not delivera translated into and be insight,can intervention, that data generating on behavioural focused to meet the needs of "surveillance capitalism", infrastructure. are pushing the limits” of this copper-based infrastructure,” “receive their internet century from 20th early aroundmore, half of households in the country full-fibre households. to coverage many other European countries in terms of thebehind UK significantly lags development, distributions impact the of full-fibre speed many smaller tech competitors (to say nothing various ways while at the same time crushing in big tech benefitted has that the crisis noted competition. new potential various including ways, up buying or blocking dominanceentrench in their economic allows these companies to and extend infrastructure cloud of control And society. extending into all of the aspects economy and that quickly is structure much corporate larger (albeit component component) a of lucrative a vast quantities of data. infrastructure to store, transfer, and process individuals and companies alike on rely cloud networks. virtual construct that utilizesof software this equipment to routers, and wires, as well as various pieces servers, centers, equipment data as such This includes physical data. and process or shared resources to store, manage, that is:processes, the use of distributed cloud to needed computing support software tech corporations. Recently, Economist The corporations. tech these issues and grow power of these large threatens manyepidemic to of exacerbate digital infrastructure is likely to be designed likely is designed to infrastructure be digital firms, developmentvital of types of various computing services represent just one just represent services computing Left to profit-maximisingLeft telecoms In each of these companies, cloud Therefers first to the hardware and [26] [25] [24] While this report will focus While this report

but “growing demands data [28]

[29] [27] The Covid-19 The Increasingly, [23] What’s What’s 8 ­Thomas M. Hanna & Full Fibre Future: Mathew Lawrence Digital infrastructure for the 21st century Democrats. Cable proposed that “Amazon proposed Cable Democrats. by Vince Cable while leader of the Liberal a similar antitrust strategy was proposed as abasic 21st-century utility,” and move suggested that we could “imagine computing King’s at recently economy London, College instance, Nick alecturer Srnicek, in digital For infrastructures. digital foundational of increasing public for calls ownership been years, in have, there recent society, modern infrastructure is anbasic in need important strategies and agrowing realization that cloud up. more than AT&T after years 30 was broken the communications with sector happened up they will quickly reconsolidate, as has broken are corporations large if even system, suggests that in this corporate capitalist approaches, especially in the United States, antitrust traditional of history Moreover, the grounds,on privacy in particularly Europe. momentum around antitrust approaches the of some and muted elsewhere attention and the Covid-19 epidemic has both focused gone nowhere on either side of the Atlantic, from other functionsservices have thus far tech firms and separate their cloudcomputing marketplace.” a offeringthird-party one and retailer general a as acting one computing, cloud offering one [could be] split into three separate businesses: Bezos). CEO Jeff primarily by his personal feud with Amazon Trump (though the seemslatter motivated Elizabeth Senator Warrenfrom to President orproposed discussed by politicians ranging broken up. In the United this States has been suggesting that big tech companies should be this takenof the has form Often, monopolies. to take on the question of the giant tech spectrum (and around the world) have begun the market. up by the tech giants,” consolidating further Moreover, “collapsing could firms be snapped easier for the big firms to hiretalent.” thebest this,” “will suggests, make it smallof brick and businesses). mortar “All policymakers from across the political [33]

Both due to the failure of antitrust However, to break efforts up the large Increasingly, and commentators [30] [32]

[31] In the , applies and to mobilecompanies phone or there would interference. be The same frequency the same over broadcast cannot asset, akinasset, to a finite, yet renewable natural as it is recognized as acommon or public unique of piece digital infrastructure insofar radio frequency (RF) is of arelatively it, portion the specifically spectrum, electromagnetic The wirelessly. data transmitting anyone else [35] infrastructure. cloud operated one model for providing a publicly funded and the European Union’s Cloud as Science Open Microsoft’s cloud computing citing systems, sector. by the government are leased to the private used being not frequencies certain which by 1994, since auctions has, spectrum conducted (FCC) Communications Commission Federal US The communications of companies. types for instance) and leases others out to various (government and services, agencies purposes public for frequencies keeps some which government, thepublic of thefederal by behalf auction. after to able hold are operators the amount of spectrum that individual mobile Award) Regulations 2018, including limits on are set out in the Wireless (Licence frequency spectrum. radio of bidding bands for actors commercial auctioning process to allocate spectrum, with radio spectrum for the public. uses an isof to Ofcom secure the optimal use of the in the Communications akey Act 2003, duty the UK's communications regulator. out set As of spectrum in the UK is undertaken by Ofcom, over and over again). the spectrum, but each frequency used be can on (.e. limited are there frequencies resource away from reliance on Amazon, Google and cases those frequencies must be exclusive. be must frequencies those cases air on aparticular frequency, and in most consists of transmitting through data the to mobile internet, broadcasts tocalls radio phone from communication, wireless All within it. and bands frequencies particular rather or spectrum, electromagnetic infrastructure we focus on is the In other words, two radio stations radio two In other words, [38] The second area of digital In the US, this asset is managed on and regulation the allocation In the UK, These auctions have generated have auctions These [36] Auction regulations [34] [37]

9 Common Wealth & Democracy Collaborative companies. networks. broadband owned publicly of establishment “preemption laws” that impede or impair the ments develop Recent 2 connectivity. combined- the can deliver two 21st century for fibre-fed 5G. It caseis not a of either-or reliableis less than full-fibre,which is crucial requirements. interest” do not meet theseoften additional “public practiced, currently as auctions, spectrum that FCC’s the suggested have observers enrichment of any party.” the many years, Over and “preventingconcentration, the unjust excess competition, to required consider also is it auctions and frequencies, leasing these conducting law, when by required, to consider generation is one of the objectives the FCC is deposited in the US Treasury. While revenue are which billionstens of government, the for publicly owned broadband networks has networks broadband owned publicly communities in their attempts to create In 19 recent years, states have enacted efforts. such dominance and hinder further their current to preserve made itapriority havetelecommunications corporations (detailed below), thelargenetworks success of publicly owned broadband of athriving digital part important future, it Critically,importance. while 5G will an be will in grow this economic infrastructure both the UK and US, meaning control of substantially demand boost for fibre in requirements that don’t apply to the private and financial legal complicated or bans At the same time, supporting local In the US, due to the spread and The launch of will 5G networks [40] These may These include outright [39]

- to the large corporates).to large the (preferring instead that the funds directed be development broadband investment for funds state receiving from networks owned publicly to block attempted have lobbyists technology infrastructure, lawmakers argue, lawmakers infrastructure, technology noting “upgrading that before America's negotiations stated, the legislative on report the safe confines of one's own home,” one from remotely to function globe the much of stop state level preemption laws. preemption level state stop ruling that only a direct act of Congress could theAppeals overturned FCC ruling in 2016, However,owned networks. of Court the Sixth laws impeding the establishment of publicly toauthority the overturn state preemption that attempted to use federal regulatory Buttigieg). In 2015, the FCC issued a ruling and Pete Elizabeth Sanders, Warren, Bernie (including cycle electoral recent in the most haveas numerous presidential candidates supported local, publicly owned broadband, President When inParty. Obamaoffice, within the Democratic especially issue, also arelatively become mainstream political as the coronavirus pandemic has forced has pandemic the coronavirus as list wish Democrats' water on are to clean like broadband internet and and 5G, access infrastructure, digital “Expanding epidemic. to Covid-19 the response interventionist (including of their broadband) part as scale investments into digital infrastructure including considering currently are large- because lawmakers at the federal level This is particularly important particularly is This corporate laws, preemption Alongside [42]

[41]

10 ­Thomas M. Hanna & Full Fibre Future: Mathew Lawrence Digital infrastructure for the 21st century economy of well-regulated commercial and plutocracypartisan in the print media, a mixed argue: “Our current media system combines a as the media theorists Tom Mills and Dan Hind publicfew interest protections.” producing content with oligopolies, corporate excesses. Many are sectors dominated by commercial for its among democracies USwrites: media “the system out stands are of particular Victor concern. As Pickard consolidations and closures journalism, these outlets, and the collapse of news local and media large-scale disinformation, of distrust another station. (closing their operations) consolidating with or either relinquishing licences their broadcast 2017 resulted in 133 televisionlocal stations in that auction ended incentive broadcast US use. mobile (blocks) spectrum for the on frequencies of the and proceeds; repurposing various to sell their licences in exchange for acut broadcasters television that allow and radio up “incentive” auctions setting agencies; government by used previously that was strategies itis pursuing are: leasing spectrum spectrum that is the valuable). most The three (especially mid-band the corporations phone availablemore spectrum to the large mobile tablet technology, the FCC has sought to make with the advent of and data-heavy future. their economic internetspeed and seize networks, control of to buildcountry and control their high- own allows and enables communities across the could atransformative become resource that affordability, Alternatively, and speed. they than they were before in terms of access, communities only marginally off better leaving telecommunications corporations, intocould diverted be the coffers of major potential investments these federal funds, remote teaching.” classroom tele-healthwould and also serve better communications sector. the instance, For in the power corporate of and extension concentration enabling are they further for a number of including reasons, that increasingly become communication has spectrum in the United as wireless States, These strategies are controversial are strategies These When to itcomes the wireless [44]

[45] In the current ofera mass [43] As with state As [46] In the UK, UK, the In for rural broadband development. broadband rural for this formula to include 10 a allocation percent Treasury. subsequent amendment A changed existing and users up to 50percent to the US to 50 percent of the to proceeds compensate a public auction of the and C-Band allocate up Congress that would direct the FCC to pursue 2019, of end in introduced legislation was currently by used satellite At providers. the recently, this relates to the spectrum C-Band telecommunicationsthe market). mobile Most corporations in control of the of vast majority the Sprint-T-Mobile three just will leave merger corporate hands (for instance, the of success continues to consolidate among fewer sector organisations.” along more established media some with digital sector dominated by afew tech giants, concrete policy advances on this front. One One this on front. advances policy concrete few there have been other functions, from separating their computing services cloud tech companies like Amazon and Google and policy making circles about “breaking up” big [49] valuable public funds to corporate interests. excessive and or unnecessary, and divert are companies satellite the for payments and incentive argue that the compensation among other things who Commissioners, includingfrom various experts, several FCC hasspectrum. drawn The process criticism the of to parts other transition the incentivize for their licenses as well as payments to compensation satellite will receive companies The 5G. to develop companies wireless to satellite and providers auction to it off willFCC leased take previously spectrum the means this Essentially, discretion). their and return to proceeds the government at auction private a to conduct companies end of 2020 (rejecting from satellitethe efforts public auction of the spectrum C-Band at the public and a organisations in broadcasting, the same time the wireless communication time the wireless the same public auctions lucrative while at extremely there has been considerable discussion in discussion considerable been has there announcingforward, that itwill pursue a not yet voted been on, the FCC has moved The FCC is moving ahead with Lastly, as previously noted, while noted, previously as Lastly, has Act Spectrum While the 5G [47] [48]

11 Common Wealth & Democracy Collaborative Welsh have does Assembly “some other broadband is similarly not devolved, but the is evidence of market failure. In Wales, there where to intervene limited powers Economy the for hasIreland’s Department to Westminster,reserved but Northern Ireland, telecommunications isNorthern of broadband infrastructure projects. For authorities have a key role in the delivery administrations and local devolved while both and coverage targets, of broadband services funding regulation and example, wider for sets, Ireland.”and Northern Administrationsdevolved Wales in Scotland, out …led by local bodies in England and the with the “practical of broadband delivery roll- to other governments, devolved partially but to Westminster reserved largely are policy marketplaces.”e-commerce one Warren Ms. for proposed breaking up alone businesses, in a manner similar to the off intostand- divisions their cloud-computing like Amazon, Google and to spin Microsoft companies require could proposal breakup Roose went on to suggest that “an effective industry.” in tech the behavior oligopolistic of given that it is “one of the clearest examples in the New Times, this was surprising businessAs columnist Kevin Roose wrote infrastructure/computing.mention cloud Importantly, Warren’s plan did not explicitly instance, Amazon’s purchase of Whole Foods). and acquisitions (for mergers tech various unwind to strategies antitrust traditional use [50] for connecting third parties”) utilities. platform online marketplace, an exchange, platform a or companies (those that “offer to the public an tech large designating certain passed to be legislation for federal called plan nominee. The presidential Democratic the to become Elizabeth Warren in March 2019 while running exception is the plan released by Senator envisioned appointingenvisioned regulators that would separated).be Additionally, Warren’s plan Google’s ad and search businesses would instance, (for lines business certain off spin they would required be to separate and other companies using the and platform, from owning both the utility and platform

In regarding the powers UK, broadband prohibited would be Companies [52] The UK government The [51] new target of “gigabit-capable of target broadband” new while Boris Johnson's Government has a build aUK-wide full-fibre by 2033,network to May’s target a had Government Theresa policy: UK of broadband focus consistent a full-fibre broadband infrastructure has been where. dominant of behaviour market operators and to challenge the power to intervene by. operate must includes This the power broadband and other telecoms companies which by the conditions and enforces defines which Ofcom, called body regulatory such as planning regarding street works. of infrastructure broadband projects, delivery authoritiesLocal are also involved often in the Local FullLocal Fibre Programme, Networks The Building by UK: delivered Digital networks Government programmes to deploy full-fibre This UK-wide fundingnot. accompanies two would they households otherwise connect private companies, such as , to subsidising to be appears this money viable; hardest to reach targeted first. follow an “outside in” approach, with the areas commercial by not reached investment will soughtactively to create. Funding for areas market -amarket that government policy has in competitive operating a companies digital infrastructure to built be by for-profit Their aim is for the of the majority UK’s future are not for viable commercial investment.” “committed to provide funding for areas that by private investment,” with the government broadband infrastructure will built mostly be government policy is that “full-fibre or gigabit- network). is neutral on whether it would a full-fibre be 2025nationwide by (though this commitment powers to take action”.powers broadband market is controlled by aUK 20% of premises that are not commercially the connecting on 2020 focused Budget investment was announced in the March as some power over additional funding. over power some as managingby well initiatives,as broadband funding for broadband is used, for example Government UK over how power has some The development of a gigabit-capable a of development The The regulation of the privatised To that end, £5 billion of public [55][56] To the reach targets, its UK [53] The Scottish Scottish The [58] [54] [57] a

12 ­Thomas M. Hanna & Full Fibre Future: Mathew Lawrence Digital infrastructure for the 21st century financial institutions the backed first have already generated. generated. already private control of digital infrastructure has that and outcomes reinforce the behaviours investment over are likely - for investors to financialised, focused on maximising returns opaque, - and incentives current structures of financialthe rhythm Their over social needs. to operating actors, corporate unaccountable [61] by owned another full-fibreprovider TalkTalk. to acquire FibreNation, seeking company the a £1.12bn infrastructure debt package, with phase of CityFibre’s UK investment plan with Goldman by Sachs. managed West Street Infrastructure a fund Partners, £538m by Antin Infrastructure and Partners was acquiredfibre network, this year for to the for government’s delivering strategy central which is infrastructure network fibre anCityFibre, alternative provider of wholesale issues concerning equity, security, and cost. line, coming on substantial are there providers financialisationeconomy. the in to the government’s fibre roll-out plan. ownership structures, which are now central that have often highly concentrated, private companies – Hyperoptics and CityFibre as and new players fibreown such network, Virgin Media, the only ISP provider with its the of alternative growth such networks as encouraged has This planning rules. relax and to competition, network-based more fibre to cabinetthe approach,(FTTC) create premises) as an networks alternative to BT’s (fibreencourage the rollto outthe of FTTP premises, non-viable commercially otherwise Rural Programme. Gigabit Connectivity and grants to public sector and bodies, The for SMEScombination scheme voucher a of are therefore in the hands of substantially into asource rent-seeking of further and risks turning of piece infrastructure a vital funding toward private actors to connect UK government has to been funnel more and the Ofcom full-fibre of deployment from Vital parts of the UK’s parts Vital infrastructure Even with anew wave of smaller The reliance on these players response to theThe primary slow [60] Seven Seven [59]

that would involve, of and data kind what stands, thestands, government has argued that UK thataccess could provide the company. it As risk’. ‘high deemed providers network for tests of the and telecoms finally networks, a new set dominatingdominated major players three by supply of equipment, which is currently second, steps to improve in the diversity UK's the networks; of operation telecoms regime regardingsecurity the design and interest. stronger First, regulation, with anew Review regarding and strategic safety network measures from Telecoms its Supply Chain announced three itis taking forward the governmentSubsequent to that, “non-contentious” as “non-core.” or described would involved be with have variously been which the of network sections The to develop capabilities 5G network in the UK. for expanding digital infrastructure is, at is, expanding infrastructure for digital private development strategy as the primary efficiently. used is to ensure spectrum policies spectrum for new uses as well as developing release Ofcom the Communications 2003. Act inused the effective way, most as set out in to ensure duty and5G, has it is a statutory isavailable for spectrum to ensure sufficient works including auctions, through spectrum managesOfcom the UK spectrum allocation, to secure 5G spectrum in April 2018. £1.4bn almost spent mobile operators biggest auctions have raised far less; the UK’s four though subsequent £22bn, raised auction spectrum license. the In spectrum 2000, companies bidding for exclusive use of a an auction process was introduced, with operator.owned With the rise in competition, network. the of Huaweicontract to help build elements those to working and 5G network that it is necessary firms lack the technicalto developcapacity a Johnson would allowing be Huawei to help 2019 in October reports indicated that Boris quo, and a policy environmentquo, that policy favors and a UK that the current demonstrate status itwasstraightforward: given to the state- was allocation spectrum market, telecoms [62] Regarding 5G, of the development The experiences of both the US and Prior to the privatisation of the UK’s It remains sections unclear which [63]

13 Common Wealth & Democracy Collaborative falls short market the Why 3 and control are necessary. to ownership approaches new development, infrastructure digital democratize and universal and affordable access. To speed rollout of new technology and for ensuring insufficient,best, both in terms ofspeed of problems in both the US and UK: corporations. This, in turn, has created similar benefit of, an oligopolistic set of for-profit by, undertaken predominately and to the thread: amarket-led approach to provision common important one least at share they and of a host economic and political factors, due to geography, development, historical differencesimportant in the US and the UK and the wireless spectrum –have services, fibre/broadband,module – computing cloud infrastructure we are considering in this considering are we infrastructure • shareholders in the form of dividends and and in dividends of the form shareholders funnelled toward increasingly debt and rentierisation Under-investment, and coordination, poor Though the parts ofThough digital the parts [64] with corporate earnings this leads to adownward spiral of lower tax that these workers and their families leave, are jobs where more prevalent. to larger cities (and their suburban areas) a major factor in the outmigration of people critical is as alack of economic opportunity of affordable high internetspeed especiallyis For many areas, this andaccess service. lack with inferiorare left or unaffordable digital families, and communities workers, often of many of these problems and areason that major a cause is telecommunications sector • • • • • players. undertaken accountable by weakly private of public are utilities and services the management as services essential of and governance ownership Undemocratic infrastructures. vital share rather buybacks than investing in political power. and economic corporate Increased monetisation. for places possible to mined be from and people connectivity, enabling as much data as hyper- of infrastructures to develop competes industry technologies as carbon-intensive of proliferation The oppression. of inequalities forms and existing amplify that control social and of surveillance systems Oppressive inequalities. gender,race, and class-based regional, and marginalised reproducing groups, excluding areas provision, pick poorer Digital redlining as companies cherry Corporate concentration in the concentration Corporate [65] In the areas In areas the 14 ­Thomas M. Hanna & Full Fibre Future: Mathew Lawrence Digital infrastructure for the 21st century expand mobile broadband availability around financial and challenges.” business not planning on rolling or face out services spectrum is controlled by companies that are their market analysis showed much that “too In 2011, for instance, Citigroup stated that sources. government and broadcast from action the FCC is taking to free up spectrum to whether their the aggressive needs justify Yet,auctions. as debate considerable is there respectively. in the US communicationsmobile companies Sprint, recently the third and largest fourth T-Mobile between merger a approved and the opinions agencies) the government of (whichand US courts largely deferred to Department, Justice the FCC, the recently, block the deal on antitrust grounds. to the government by litigationof and attempts Time Warner –which went ahead despite years 2018 AT&T completed to mega-deal acquire its in instance, acquisitions For continue apace. companies.” large three or two dominated are Both by transmission. wired submarkets –one for wireless and one for market, there enormous are two monopoly tois high-speed the access Internet. In that that is facilitating basic transmission service the standard phone line These days is. what the market for the equivalent modern-day of they may surprised be at how concentrated but innumerable for room has competitors, the economy of the communications sector writes that “most Americans probably believe companies. wireless are sectors dominated by a few large the US and the UK struggling to survive. that manyloss has communities left in both population and further cuts, service revenues, commitments made by the companies to the companies by made commitments T-Mobile-Sprint number a of were merger to the blessing its ingovernment giving and beneficiaries of, the FCC’s spectrum and AT&T are the often major players in, like corporations T-Mobile,phone Sprint, and mergers as consolidated more ever Part of the justificationPart for the mobile mentioned, previously As Moreover, becoming is the sector In the United both States, the wired and [66] [69] Harvard’s Susan Crawford

[67] [70] [68]

More More introduction, however it is worth reiterating worth is it introduction, however in earlier the discussed were concentration “the implications limited of are competition “the evolved,”requirements—have and that consumers’technologies—and broadband as declining the years been over generally have that choices “competitive Institute for Broadband and Society, explained the Fellow at Benton Senior a Jonathan Sallet, it is likely that will costs increase. Recently, the hands of afew for-profitcorporations , as the market continues to concentrate into guarantee it will affordable. be To thecontrary, expand mobile there broadband is no access, to dramatically pledges follow through its on wrote. they service,” higher and lower prices, in quality phone to other will carriers result in competition, less believe that the elimination of Sprint as arival of economists Furthermore, vast majority “the that holds them to what they say in court.” it concerns future plans. There is nothing when especially persuasive, to be descriptions explained in 2020, early “it’s of CEOs’ part job professors school and business economists However, as a group of seven prominent –especiallythe country in rural areas. they do business.” do they how forcing and to them reorient competitors made… choking off of thewould-be growth what they profiting off and their engineers to poach other people’s trying innovations, and corporate its extend power, “lifting computing to decimate smaller competitors in infrastructure and cloud position monopoly illustrates how Amazon has near its used in York the New report Times recent A here. 33%. for alone accounting Web Services Amazon global cloud infrastructure market –with and Google) account for around of the 60% Microsoft, (Amazon, companies American Recent estimates suggest that just three ininfrastructure. cloud exists control corporate more.” ending up paying users obvious”, service with event that the new, company mega does infrastructure has also market-led been [72] In other words, even in the unlikely The development of the of UK’s development The digital Similar and market concentration [73] Some of the of implications this Some of [74] [71]

15 Common Wealth & Democracy Collaborative reach just within 80% 15 with 100% years, “enhancedof competition,” would coverage time. Underthe UK conditions in 20 years would reach just 75% connectivity of FTTP analysis suggests that in abaseline scenario, 100% full-fibre in network the UK. a set of different approaches for building a analysed Commission Infrastructure National 2018 Frontier from the for Economics report quickest nor affordable route. most AJuly market-ledUK the neither via is competition of a comprehensive full-fibre in network the superfast broadband.” for toinfrastructure competitor Openreach Virgin Medianetwork; “is the only major dominated due to ownership its of the copper divested into a legally distinct company - and is afunctional division of BT, albeit national broadband and telephone network, all homes and businesses in the UK to the cabinets and exchanges that connect nearly ducts, that maintains cables, the telephone provider network the wholesale - Openreach [76] infrastructure recovered. has never properly To this day, the UK’s deployment of full-fibre behind in broadband speeds and coverage. 1991 roll out was stopped and the UK fell far Consequently, in the expertise. it and with The factories were sold to Fujitsu and HP competition. to increase service the same providing companies cable American wanted and "anti-competitive" was broadband optic BT’s rapid and rollout extensive of fibre Prime Minister decided Thatcher Margaret to roll out to the loop. local But in 1990, then manufacturing the components for systems thancapita any other nation factories and two a result,As the UK briefly had more fibre per replacing copper wiresnetwork, with fibre. drive- began amassive to digitise the company in of the being process privatised In the 1980s, - thenBT a publicly owned full-fibre a of network. stalling the deployment companies, with this market-based approach and undertaken by ahandful of powerful infrastructure.” market fibre to deploy competitive a promote private investment by encouraging roll-out of superfast broadband,roll-out of superfast where Yet the deployment suggests analysis The current policy approach is “to [77] This is distinct to the [78]

[79] Their Their [75]

monopoly provision would deliver a universal universal a deliver would provision monopoly 'enhanced competition. government-subsidised of conditions comparedat £22.8bn with £23.7bn under provision slightly under monopoly lower thoughCompetition) equivalent, roughly are (National and Enhanced scenarios Monopoly £20.3bn. of Capex deployment achievable within 15 at years an undiscounted full-fibre deployment nation-wide with market competition conditions, enhanced coverage faster and at alower than cost would universal deliver provider monopoly a suggests analysis the contrast, By £32.3bn. to reach 100% coverage is estimated to be “enhanced competition” via deployment companies to of reach. The cost for private are uneconomic which areas including for and subsidies franchisement significant government with intervention, only broadband corporations put prices up 40%. prices put corporations broadband line but went rental down costs over 40%, like behaviour: to from 2018, 2006 wholesale exhibit rentier- whole a as sector telecoms and severe under-provision in the And others. areas, in profitable deployment infrastructure andwith costly excessive duplication of coordination of investment, poor from suffers and damaging short-termism. The sector also public subsidy, expensive without service the failurecherry-picking, to deliver universal of full-fibre exhibits classic market failures: deployment Indeed, to underprovision. leads unprofitable in rural or poorer areas and that make scale of deployment economies is characterised by high and fixed costs infrastructure This full-fibrethe network. likeand universal, accessible utility services “enhancedof competition.” under conditions or than the baseline scenario full-fibre faster network and at a lowercost coverage under such conditions achievable conditions under such coverage Operating Expenditures (Opex) for the two infrastructure efficiently and equitably, with equitably, and efficiently infrastructure universal deliver to ill-equipped structurally investors seeking to maximise returns are infrastructure vital maintaining and building market-led, for-profit model is ill-suited to The undiscounted deployment The fixed Simply companies put, by owned This the reflects fact that awholly [80] In other words, In words, other [81]

16 ­Thomas M. Hanna & Full Fibre Future: Mathew Lawrence Digital infrastructure for the 21st century Source: Common Wealth analysis of data from Thomson Refinitiv Eikon. Accessed May 2020. Refinitiv Eikon. Reuters Thomson Accessed from of data Wealth Common analysis Source: Figure 1: 2010-2019. Income, Investment (Capex) to and Fixed Pretax Payouts Relative Shareholder was paid out to shareholders in 2019 alone. inflation).for total of £53bn since 1985 (all figures adjusted average annual dividend of over £1bn, for a the UK’s main network provider –paid an 20 years, BT Group –including Openreach, stock." capital the expanding "significantly than the sector ‘sweating’ existing assets rather has been relatively flat in nominal terms, with in the telecoms industry over the past 20 years the UK. For example, the level of investment over investing in the infrastructure needs of value shareholder maximising on their focus the decade to 57% in the latter half. relative to pretax income in the first half of pretax income, rising substantially from 36% averaged just under half of BT Group’s (including share buybacks)and dividends During this time, total shareholder payouts maintained an average profit margin of 10%. just shy of 140% in 2019. of pretax income, from over 260% in 2010 to fixed investment (Capex) fell as a proportion the same time, as shown in Figure 1, BT’s [82] Between 2010 and 2018, BT Group To take one example, over the past [83] Strikingly, £1.5bn in dividends dividends £1.5bn in Strikingly, [85] Other telecoms telecoms Other [84] At At businesses then means that shareholder then means businesses shareholder-owned of structure incentive have amarket monopoly (or duopoly). The they where areas inhigh-density possible as investors. respectively. to total pretax income between 2010-2018, and TalkTalk paying out 46% and 175% relative higher rates of shareholder payouts, with Sky such as R&D investment or infrastructure of corporatepart cash, in lieu of other uses payouts consume an increasingly significant providers exhibited similar exhibited significantly or providers model is based on raising prices as much and low-income areas. Instead, their profit expanding or improving networks in rural public subsidies and incentives) to invest in (outside insufficient incentive of little have broadband internet. is amajor factor in the lack of affordable power in the hands of for-profit corporations analysts and agree experts that oligopolistic increasingly funnelled toward private toward funnelled increasingly deployment of full-fibre has instead been digital infrastructure and accelerating the cash that could beinvested in improving In both the US and the UK, many [86] In other words, corporate [87] These corporations corporations These 17 Common Wealth & Democracy Collaborative previously expected by shareholders. by expected previously payouts. to shareholder fixed investment, just over was 50p devoted over £1 the same period, for devoted every to R&D spending inwhile the years, five past on average times to 2.5 nearly the value of amounted payouts Shareholder decade. past well as fixed investment (Capex) over the grown relative to stated R&D investment as shareholder payouts from BT Group have Capex, for example. As Figure 2 shows, Source: Common Wealth analysis of data from Thomson Reuters Refinitiv Eikon. Accessed May 2020. Refinitiv Eikon. Reuters Thomson Accessed from of data Wealth Common analysis Source: Investment (Capex) of as aFraction Fixed Figure and Payouts R&D 2: Shareholder Spending. them for 2021-2022 at a lower rate than withdividend aplan payments, to reinstate Covid-19, Group BT recently suspended its of impacts the of economic consequence asnotable a that is it or efficient affordable. thatat scale, apace or cost, is maximally century twenty-first the in communities and economies local thriving to develop provide the digital infrastructure needed to telecommunicationslarge corporations and communities cannot upon rely afew Simply put, households, businesses businesses households, put, Simply [88] [89] Most Most private shareholders. private investment will in continue large part to enrich full fibre, the 10-12% expected return on UK-wide, of affordable delivery the furthering than rather term reduction; consequence, a as shareholder payouts will asignificant see long- that improbable seems it crisis, economic a small setback due to an unprecedented infrastructure Moreover, and service. despite impediment to the roll public out of avital returns over reinvestment has acritical been return of 10-12% on this investment. PhilipExecutive Jansen stating a he expects by the mid-late 2020s, and Group’s BT Chief 15m increasing from target premises to 20m official company’s the with announcement, fibre infrastructure that accompanied this delivering for goal interesting the increased is also lays bare how prioritising shareholder prioritising how bare lays also While such amove is welcome, it

18 ­Thomas M. Hanna & Full Fibre Future: Mathew Lawrence Digital infrastructure for the 21st century democratic planning. democratic and participation of sites as remade be to exploring how infrastructure data can to socialising ‘feedback infrastructures’; systems; from reshaping work platform around algorithmic to intervening banks data creation of national funds data and collective innovative and experimental future, from the inequalities. Deal New Green transformative a deliver equitable digital infrastructure we cannot Without fibre a modernised networks. and the availability and distribution of robust and reliant predicated is technology on communications in wireless that this advance given deployed, and developed is technology significant 5G as more even to become grids, and electric vehicle charging. It is likely energy and smart systems, mobility transport learning/education, remote telehealth, urban possible world is digital Another 4 nor challengenor regional and social deep US and UK in recent -and decades which, in digital infrastructure of thedevelopment that haveapproaches dominated the the “regulatory state” and market-oriented But delivering itwill require moving beyond infrastructure also can open up amore including public WiFi, services, essential the precondition for a growing number of and is boost alsoimmense productivity broadband has the potential to deliver an the internet, however. fibre/ instance, For than just connect us to each other and to Another digital world is possible. 21st democratic A digital century Digital infrastructure far does more [90]

and US telecoms market is an exception noting the wholesale privatisation of the UK utilities.” public administered democratically of series a as it operate the age...and digital of infrastructure that should we suggests “nationalize the face of this devastating Davis prospect, history.” in world In monopoly thelargest Amazon’sand boost further status as “the this crisis will eviscerate small businesses Davis has recently raised the that prospect center. and front questions Mike instance, For that has resulted has from brought it, these Covid-19 collapse theeconomic and epidemic, The commons. digital to enclosure a private and distributed, moving from conditions of and as owned, well as how are data produced deployed is infrastructure digital how reshape divide. digital deep a and control, and concentration out of fibre/broadband, corporateincreased for private investors, have to led the slow roll- dividends to shareholders, earnings be to can shareholders, dividends digital without divide. And the to need pay the as inequalities such addressing needs, basic everyone's to meet organised are they foundationalof ensure can infrastructures Public ownership profit. not people, for run development and and should developed be and social economic for crucial are and assets institutions, networks, these infrastructures: physical near-monopoly or natural fundamental governance. privatisation. and competition sector law, currently tilts markets towards private in Europe though EU particularly common, is intervention active and more ownership among OECD countries, infrastructure is the same as for other digital of transforming ownership and ownership underpinned democratic by 5G 21st – as a vital public century good, and maintenanceconnections optic fibre of and and the rollout infrastructure, cloud – including the wireless spectrum, righta and organising infrastructure digital direction of treating as digital connectivity while delivering arich stream of dividends Instead, public policy should to seek The core economic for case in the moving We propose therefore [91] More modestly, itis worth [92] where both public both where [93] 19 Common Wealth & Democracy Collaborative speculation over productive investment. investment. productive over speculation financial promotes that structure incentive an of establishment the and mechanisms; avoidance tax havens otherand tax off-shore captureregulatory (among others); the use of and contributions, campaign lobbying, through process democratic of corrupting to a small group of elite shareholders; the for executives and the funnelling of profits inequality through both exorbitant salaries all accelerating other considerations; of shareholder value and returns above the enshrinement muchpossible; as as externalise social and environmental costs to and reducing efforts pension security; to to reduce hostility labour unions costs, including drive a behaviours, problematic of infrastructures is also associated with aseries planning. and coordination for effective the scope reduces cherry-picking and fragmentation but competition, to no substantive power of there exit, is limited lackgenuine Consumers competition. full-fibre market -are not conducive to the emerging with as oligopoly concentrated conditionsbecause of private monopoly -or for-profitcorporate, is This ownership. to preferable often is public ownership and other naturalinfrastructure monopolies, that in basic persuasions ideological various of economists amongst an understanding coordination. strategic economies of scale and the savings cost of borrowing are harnessed, as better arecosts lower means infrastructure vital of deployment infrastructures.of vital Public ownership and and put the public first in the development ownership rearrange can those incentives invest to improve infrastructure; public to funnel cash to shareholders rather than increasingly is - borrowing or earnings from The marginal use of corporate cash -whether creating and regulating an artificial market. the government, and itavoids of the costs to invest in public infrastructure projects for for the government, itis cheaper to borrow are they than companies forprivate higher What’s more, with interestservices. rates reinvested towholly improve and expand Private ownership utilities of vital and been long time, has At there thesame use fibre-optic cablesuse fibre-optic and have capacity the by a local, publicly electric owned utility, and operated established often are which networks, These internetUS connection. is hundreds of times faster than the average which (in states) offer six networks, 10Gbps super-fast of networks at least 1Gbps and 26 230 of these communities (in 33 states) have Moreover, owned. publicly are than more 500 is striking that in October 2019, Hull became it Nonetheless, municipal full-fibre networks. Tennessee and Georgia. the several neighbouring jurisdictions in both residents but also of Chattanooga, those in notcountry, only the roughly serving 180,000 in the networks owned publicly theof larger billion economy. to the local businesses can thrive. and ensuring development local economic and affordability,especially as it relates to a municipal broadband is access network of motivations the primary for establishing (like districts).areas One medical or business Home), or community, of most a city or certain or To community (FTTH-Fibre a whole city The connect can They addition to internet access. in service and television phone to provide owned broadband networks. broadband owned community established have counties) and communitiesthan 800 (including cities, towns, shows that in the several past more years, (ILSR) Self-Reliance Local for Institute the century. inneeded from theData twenty-first to build and operate the digital infrastructure to are use public starting country ownership the United communities States, across the already commonplace around the world. In broadband/fibre of isownership networks area of digital infrastructure. Indeed, public is emerging an important alternative in the traditional public infrastructure, ownership for adding new around jobs and US$1 2,800 Gbps and is credited with being responsible It has subsequentlyservice. upgraded to 10 the first in the UnitedStates to offer 1 Gbps was a fibreandsince the network city 2009 (Electric Power Board) has operating been There, the publicly city’s owned utility examples is in Chattanooga, Tennessee. In the there UK, are fewer examples of One of the more known widely Just as it was (and continues to be) with [95] [94] It is also one Of these, these, Of 20 ­Thomas M. Hanna & Full Fibre Future: Mathew Lawrence Digital infrastructure for the 21st century opment of digital infrastructure primarily to social goals. Instead of leaving the devel est with aclear emphasis on meeting key ture is developed the to serve public inter just economic. not political, inherently are infrastructure on how we design, use, and own digital decisions such, As politics. to fundamental are that questions in society; materials of power and organisation of work and means it decisively shapes the distribution of digital infrastructure in the modern world ownership public democratic of principles Goals and 5 rural broadband. delivering homes, the5,000 world’s fastest launched in 2011 and has connected over not-for-profit company benefit community full-fibreconnection Lancashire.ruralto The successful community-led initiative to bring Broadband for the Rural (B4RN) North is a example, For development. infrastructure led community- of examples are there Similarly, fairer. and faster connection universal deliver help can roll-out comprehensive a to plan , and suggestive of the fact the ability to a historical fact that the Hull area has no BT inand the telephone region, related services Internet of near-monopoly the provision on delivered by KCOM, a company which has a broadband available to all residents. This was in thethe UK first city to make full-fibre It is vital that our digital infrastruc importance and pervasiveness The [96] - - - impacts). The prevailing assumption that environmental and social, economic, other for equity, health, and wellbeing (among Covid-19 implications serious - epidemic and hasety -as demonstrated by the indispensable to full participation in soci forward. going infrastructure ship, that could inform the design of digital for 21st century democratic public owner ciples, anchored in an ambitious strategy tal infrastructure these to serve ends. intentionally then buildand digi and design expand the capabilities of ordinary citizens, from howstart best to meet the needs and should we this engenders, insecurities and ful corporate actors, with the inequalities the interests and time horizons of power 2. Empower citizens and workers through workers and through citizens Empower 2. aresociety universally accessible. we allservices need to participate fully in for all and that the foundational goods and basic needs are met free at the point of use (UBS) ensuring agenda, Services Basic sal broadband being of the part wider Univer the key goal is to move in the direction of policies section of this module). However, be discussed further in the recommended different in the US and the UK (which will is developed and delivered will likely look society. How broadband as apublic utility powerful goal for a more equal, innovative the public to full-fibre is thusvital a and mechanisms. all, rather than provided primarily by market human right with guaranteed access for band internet should beorganised as a inequality. Instead, we believe that broad and entrenchingety racial and economic communities from the 21st century soci and isolating individuals further utility, risks who can afford to pay, rather than as a public corporations and accessible only to those connection should beprovided by private 1. Provide full fibre access to all A new national mission to connect connect to national mission new A Access to the internet has become key prin six We propose therefore

[97]

[98] ------21 Common Wealth & Democracy Collaborative and all public institutions and approaches values, and long-term strategic direction of principles, the shapes that decision-making in participation social wider and workers public ownership are needed that embed gerial. Instead, new models of democratic centralised, top-down, political, and mana ship that were too often excessively public owner of forms older of mistakes tal infrastructure should not replicate the planning. scope for democratic coordination and methods and processes, as well as the deliberative and participatory deepening should incorporate such strategies for and management of digital infrastructure distribution, development, the to related planning.” mated through “auto coordination ing economic beyond the price mechanism; and improv and meet social and environmental needs “designing coordinate non-markets” to throughthem mechanisms”; non-market to “detect new needs and ways to satisfy “solidarity as adiscovery procedure” as tion”. social arrangements, from apart competi economic democracy. organising, deepening allow effective for help rebalance power in the workplace and can they democratised, their organisation racies. But, if their use is reimagined and democ and societies, in our economies, nudge and exacerbate deep inequalities surveil, technologies digital Currently emerge. to system democratic participative of enabling aricher, more substantive and is helping to build. This is not just in terms them astake in the world that the internet directly in decision making, and grant important tools to allow people to engage ability transparency, account and participation, social coordination” to discover “other for scaling “new, non-market forms of full-fibre infrastructure is a precondition [99] Anchoring this, ownership of digi of ownership this, Anchoring public-oriented modernised, A as function can technologies Digital As Evgeny Morovoz argues, using using argues, Evgeny Morovoz As [100] We believe that any ------have thus far proven to beineffective in tional regulatory and antitrust strategies either the public or private sector. Tradi and breaks tax and hinder competition from ing the political system to extract subsidies rent-seeking activities, including manipulat of variety in a engage corporations these a strong motivation to maximize profits, and competition little With implications. serious economic, social, and political power. Aspreviously discussed, this has operate with monopoly or near monopoly structure, afew large for-profit corporations power political and concentration corporate Reduce 3. ested parties. inter other and residents, users, workers, includingstakeholders different of roles a multi-stakeholder approach, with clear the organisation. This should bebased on able sources of renewable energy continue energy renewable of sources able via improved feedback loops. And as vari bicycle, pedestrian and vehicle traffic water,manage energy, and air pollution, structure to more effectively monitor and to further embed sensors in the city’s infra 5G in particular represents an opportunity resilient and decarbonised. The prospect of efficient, are that – coordination economic systems –heating, energy, transport, and Deal ical sustainability and aGreen New Link4. digital infrastructure to ecolog scales. ous vari at options public or a option providing community-based non-profits) and or by ing public enterprises, cooperatives, and (includ alternatives democratic with tions and reduced by replacing for-profit corpora olies and oligopolies should beconfronted the wireless spectrum, corporate monop broadband/fibre, cloud infrastructure, and areas of digital infrastructure, including of corporate power. We believe that in all this concentration reversing or curtailing play a critical role in supporting new In anumber of areas of digital infra Digital technologies can and will ------22 Common­Thomas M. Wealth Hanna & & Ownership Futures: Towards Democratic Public DemocracyMathew Lawrence Collaborative Ownership in the 21st Century 6. Ensure6. that people have control and software. gies such as 3D printing and cutting edge as well as shared access to new technolo such as database management and coding, skills supporting by divide digital the bridge help can groups, socio-economic and tions sible, both to people of different genera co-working spaces that are broadly acces ly-owned or cooperative "maker labs" and but also in terms of skills and use. Public the digital divide, not just in connectivity structure should include steps to address public develop to infra digital any effort ity, behind in terms of access and affordabil on areas and groups that are being left believe that in addition to aspecific focus with respect to age, race, and income. We and skills are apressing concern, especially divide digital the Address 5. exacerbate existing inequalities. if “smart grid” trading isn’t to replicate and so national coordination will berequired generation, renewables for roofs largest ier areas are those with the most land and decentralised renewables model: wealth the of distributional consequences adverse potentially the tackle to include action green energy access for all. That should potential of grids smart and ensure stable, prises, should bedeployed to realise the enter telecommunications mobile owned broadband/fibre networks and or publicly tal infrastructure, including publicly owned believe that all public investments in digi system is referred to as the "smart grid.” We ways. This more dynamic, decentralised for electricity and information to flow both optimize systems –are making it possible intelligence to artificial and consumption, communicate and measure that meters smart storage, and generation electricity tions –including decentralised, small scale and demand will bevital. and predictive ability as to energy supply to enter the energy grid, improved control Sharp inequalities in digital access A series of technological innova ------be acritical goal of public policy. the underlying digital infrastructure must over control and ownership of arrangement dominant tech monopolies. Scaling anew concentrated amongst a narrow set of the data itself,” ownership which remains as important as the question of who owns of producing ‘feedback data’ are at least ownership“the and operation of the means that fails this consider to agenda argues, power of “Big Tech”. AsEvgeny Morozov nies. be shared freely to enrich private compa good with adiscrete value that need not a digital public asset –that is, apublic We also need to regard public data as who move data through their networks. companies, and technology corporations telecommunications providers, service internet the for frameworks regulatory enterprises, and that it should extend to collected by governments and public needs to involve publicly available data to data. We believe that such astrategy privacy, encryption, and collective rights be collected, as well as data sovereignty, establishes limits as to what data should ethical data management strategy, which There is apressing need to develop an power over their own data enough to challenge and transcend the challengeenough to transcend and rights is important, but does not go far [101] Embedding anew set of digital - 23 Common­Thomas M. Wealth Hanna & & DemocracyMathew Lawrence Collaborative equivalent over the projected 25 year lifes and Enhanced Competition) are roughly (National Monopoly scenarios two the for premises. of remaining the to 20% connection deliver to facilitation and subsidy ing government 80% of premises in that time period, requir “enhanced competition” would only reach would deliver full coverage within 15 years, option monopoly the while What’s more, expected under “enhanced competition”. Capex of £20.3bn against the £32.3bn tion,” and under apolicy of “enhanced competi lower cost than both the current baseline, wide full-fibre network at a significantly nation a would deliver provider monopoly a that suggests Commission Infrastructure National Frontier the for by Economics and who pays. Aswe have seen, analysis and over what timeframe, at what cost, would bring; the critical questions is how wide full-fibre broadband infrastructure mous benefits that a transition to a nation network full-fibre by 2030 mission a to deliver with nationwide a 1. Anew public company infrastructure (UK) Proposals Policy structure Infra Digital 6 [103] The undiscounted deployment Opex Opex undiscounted deployment The enor the on consensus is There at an undiscounted deployment undiscounted an deployment at ------roll out of full-fibre has several parallels connectivity was achieved. Similarly, the ownership in 1911 to ensure universal into public sector telephone the took tion in 1870,try while the Asquith administra Gladstone nationalised the telegraph indus graph industry, the Liberal Prime Minister For example, to build out anational tele efficiently, equitably and cost-effectively. network infrastructural critical rolling a out why amonopoly provider is preferable for organised via market competition. than primarily through private investment structure through amonopoly actor, rather -ofsality building the UK’s full-fibre infra case -based on speed, cost, and univer competition.” strong therefore a is There of government-subsidised “enhanced compared with £23.7bn under conditions £22.8bn at provision monopoly under lower slightly though infrastructure, the of pan number of reasons. less costly if under public ownership for a oly deployment is likely to besignificantly acting as a branch of BT. However, monop tion to the relevant of BT Technology), parts oly provision would beOpenreach (in addi cheaper and faster than other alternatives. full-fibre network universal a deliver to likely is suggests, analysis commissioned government’s the as and, planning, tive the costs of duplication, allows for effec avoids it today: provider monopoly a for acrosssome sort huge open distances). the same (the laying of physical cables of the physical and capital requirements are say the same for full-fibre, since in essence the National Grid in the UK; we can likely required, such as the TVA in the US, and was public intervention large-scale why is countryside via private companies, which never going to be profitable to electrify the countries during the 20th century. It was across electricity of networking the with Historical examples demonstrate demonstrate examples Historical The obvious candidate for monop for candidate obvious The case the underpins logic same The ------24 Common­Thomas M. Wealth Hanna & & Ownership Futures: Towards Democratic Public DemocracyMathew Lawrence Collaborative Ownership in the 21st Century the level of annual investment required to Fibre Britain should berequired to deliver Growth Deal, and local government, Full other growth deals, such as the Ayrshire administrations, the Deal regions City and nation with Ofcom, the Treasury, devolved incoordi and Commission Infrastructure internet provided as afree public good. general taxation with access to full-fibre operating costs should bemet through ment Bank. Once the network is complete, an effectivelycapitalised National Invest as well as borrowing to invest, ideally from does, currently Openreach as just network, tors providers and service for access to the should come from charging ISP opera investment to build the infrastructure ture should beopen access. Funding for ambitious post-crisis strategy. recovery and work to build the of network an part investment deployment”, greater of with though should beatransformative “decade unclear. yet as is goal connection The and status, the extent of delays to installation tions sector has been assigned ‘key worker’ infrastructure; while the telecommunica on the impact of Covid-19 on building the target should besubject to review based wide full-fibre infrastructure by 2030. This its purpose should beto roll out anation- mission-oriented: be should Fibre Britain, The new public infrastructure company, Full taken public into ownership. democratic be therefore should network core the out elements of the BT Group related to rolling est pathway, Openreach and the specific bre network under the lowest-cost, fast via dividends or share buybacks. shareholders to than diverted rather ment, - and debt can be used entirely for invest notably lower than for private companies cost of public borrowing for investment is and expanding the network. Second, the rate earnings to bere-invested in improving the need to pay dividends, allowing corpo Based on the analysis of the National A 100% full-fibre digital infrastruc To full-fi nation-wide, a deliver eliminates ownership public First, ------and £430 million per year, depending on provide savings of between £290 million at cheaper government bond yield - would refinancing and payments nating dividend Openreach into public ownership -elimi investment for Savings legacies. of topography and historical infrastructure of place, as well as the differing challenges structure to be better attuned to the needs full-fibre the of infra deployment the enable country). Aregional build-out approach will challenging geography, and the rest of the Highlands their given uniquely and Islands, one for Wales, and for two Scotland (the one each for the nine regions of England, and national divisions of Full Fibre Britain: and conducted through regional twelve out should becoordinated by acentral body build afull-fibre network by 2030. The build to approximately £330 million annually for from eliminating dividend payments equate was -1.3% in real terms. est rate for the telecoms sector in June 2019 instance, Ofcom’s estimated risk free inter low. For historically currently is borrowing vative estimate, as the cost of government would cost 1.8%.This is likely conser avery government debt secured assumes table ownership savings in other sectors, In line with PSIRU 2019 estimates of public mately 25% of group profits for the year. shows Openreach generating approxi its" from BT’s 2019 Annual which Report, "operating using prof measured was This bution to the profitability of BT as a whole. Openreach,pro rata to Openreach’s contri to attributable highlighting proportion the [104] reach as afraction of operating profits. £360 and million £540 per year. dividends could yield savings of between 1.8% at debt nancing existing to in addition reach’s contribution to the BT Group. Refi the measure of profit used to assess Open Table 1shows BT’s financial results, Our analysis suggests that taking taking that suggests analysis Our As shownAs in Table 1, the savings The analysis below considers Open [106] [105] the the ------25 Common­Thomas M. Wealth Hanna & & DemocracyMathew Lawrence Collaborative ongoing coronavirus crisis, book value may may value book crisis, coronavirus ongoing causedity by the economic impacts of the crisis. oil spanned political ruptures like the 1973 which months, several of period defined market value on the average value over a was the result of basing compensation by assets and cash held by the company; this value in comparison with the in £30m net £5.3m in compensation based on market ship builder Vosper Thornycroft receive just shipbuildingof saw instance, for industries, 1977 The determine price. a nationalisation over which the market value is averaged to as well as decisions such as the timeframe variable due to fluctuations in share price tion based on market value can behighly 10 years. and 20% of deployment Capex costs over savings would still generate between 16% consequently, debt; net existing nancing of potential refi and elimination dividends of lated above, which are determined by the the absolute value of annual savings calcu value for compensation does not impact However, the choice of book or market value. higher book than the currently is of equity, which in the case of BT Group based on market rather than book value be would shareholders for compensation full-fibreof deployment. between 16% and 20% of the Capex cost reach into public ownership would cover year period the savings from taking Open approximately 9-10 years. Thus, over a 10 take would deployment infrastructure ing Openreach into public ownership, the period" to allow for the process of bring building a100% fibre network. that could beused to pay for investment in increase to £410 million per annum -savings savings annual the calculation, refinancing interest payments are also included in the If Openreach’s portion of BT Group’s net the Openreach segment of the business. suggests that after an "implementation an after that suggests It is noting worth that compensa whether to as debate some is There Frontier Report The Economics [107] In light of the market volatil ------Group operations related to rolling out the reach and other minor components of BT Financing acquisition universal coverage at the fastest pace. most cost-effective route to achieving the is provider monopoly a that is clear is and regulatory incentives. However, what subsidy government with even coverage competition may still fail to deliver full incentive to innovate, while enhanced suggests a monopoly may have reduced Frontier the report Economics instance, for deployment; to approaches competition tified between monopoly and enhanced share in March 2020. 2020, reaching a52 week low of £1.03 per price has fallen since by 40% January 1st compensation. Indeed, BT Group’s share prove more desirable for those receiving of Openreach. This made it easier to sepa fer of 31,000 staff as employees specifically of Openreach last year, including the trans required to finalise an internal separation outcomes. than private control will generate better public rather whether and operate, entities acquired, but how the new publicly owned critical issue at hand is not how assets are an income-generating asset. Indeed, the equivalent value, and the public acquires shares, or in this case anew company, of the bond issuance is matched by holding not impact the UK’s public debt, because perspective, transferring ownership does in 1977. Importantly, from an accounting of the aircraft and shipbuilding industries nationalisation the in instance for Kingdom, shares has various precedents in the United method of effectively swapping bonds for compensation The Openreach. from will derive which of majority a elements, shares in BT Group attributable to these their of value exchange equivalent the for in shareholders to bonds ing government core network should occur through issu Financing Open of acquisition the There are certaintrade-offs iden It is noting worth that BT was - - - - - 26 ­Thomas M. Hanna & Ownership Futures: Towards Democratic Public Mathew Lawrence Ownership in the 21st Century with an assumed "implementation period" a decade, full-fibre nationwide under just is Timings underfunded. consistently remained has whileScheme the shareholders to billions of pounds paid out in dividends while under private ownership, with several fact that the pension deficit has accrued the relevant of BT should parts reflect the acquiring for argument compensation that the ultimate guarantor; and that there is an already is government the so scheme, the there is an existing Crown guarantee for tion in context, it is important to note that monopoly providers. To place this acquisi other relevant segments taken on by the and Openreach from senting all employees repre Scheme Pension the of fraction the approach would be, for example, to take on the division of assets and liabilities). One Scheme, which closed in 2018 (as of part intoalone public ownership. segment network take the simpler to cantly private company; it also makes it signifi rate the network business as aseparate infrastructure deployment period for period deployment infrastructure take on a fair share of the BT Pension public ownership, the state should also 3. 2. 1. Table 1: Annual savings from public ownership of BT or Openreach (Dividends only) £m) figures(All Openreach BT

All figures are rounded 955/3846 =25% ating profits represented by Openreach, as per shown in BT 2019 accounts ie. Openreach data estimated by adjusting BT group figures by proportion of oper Source: BT plc annual 2019 report Frontier Economics suggest theFrontier suggest Economics In taking a small of BT into part Dividends 370 1,500 of equity Book value 2,525 10,170 - - - RoE% 14.8% 17.8% bent provider, in contrast with taking a fully scratch and negotiate with amajor incum utable to the need to establish NBN from ment occurred, and this was attrib in part just a2year period in which no deploy Broadband Network (NBN) in Australia saw Forpast. instance, the creation of a National comparable models have exhibited in the than period implementation longer cantly pace. during implementation, albeit at areduced expected to engage roll in out,” some FTTP unlikely, noting “BT/Openreach could be is in this period deployment zero of tion assump the Frontier acknowledge First, more quickly, in line with a2030 target. ment could be completed significantly deploy suggest to reasons several are there be achieved by 2033 at the latest. However, therefore 100% would deployment occur; would deployment during zero which provider monopoly the for new framework of years 3-5 between for establishing alegal As part of this,As part workers in acquired compa the network through training and support. neers and technicians required to deliver ing and expanding the "pipeline" of engi greater investment is required in develop phy and scale. It also reflects Australia’s unique geogra operational company into public ownership. [108] To support the roll out of the network, 5 years also represents a signifi a represents also years 5 interest annual at 1.8% Refinanced 45 savings Annual 330 ------27 Common­Thomas M. Wealth Hanna & & DemocracyMathew Lawrence Collaborative last 20% should bemade only available to commitment of £5 billion to connect the ofas the part national the network, existing cooperatively owned broadband networks Mayors that are seeking to build public or communities, local authorities, and metro branch of the wider To network. support instance operating as an autonomous local grated into a national network provider, for companies could potentially beinte (Broadband for the Rural North). These a local scale, including KCOM and B4RN that have managed to roll out full-fibre at regional, community and rural providers roll-outs municipal and community aging encour network, the wider Incorporating Britain. Fibre Full in conditions and terms better or same the nies should beguaranteed their jobs on Debt) Table 2: Annual savings from public ownership of BT or Openreach (Dividends & Review: Annex Fig 21 A, Source: Table 1; Frontier Economics 2019 Future Telecoms Infrastructure Table 3: Use of savings for comnpensation or funding of full fibre deployment Openreach BT £m) figures(All £m) figures(All only Dividends + Debt + Dividends There are a number of successful saving Annual 330 410 370 1,500 Dividends 2,525 10,170 equity value of Book of equity Book value 2,525 2,525 14.8% 14.8% % RoE - - (monopoly) network fibre Cost of 100% 20,300 20,300 Accelerating roll out company. of borrowing for apublic infrastructure of strategic planning and lower the costs benefits the maximise to operations such of acquisition negotiate to appropriate be the monopoly provider. Over time, it may by undertaken be would this extension provider, Frontier and monopoly assume footprintFTTP in the context of a national would invest in extending their current However, it is unlikely that Virgin Media and managing their own infrastructure. would remain free to continue providing infrastructure –notably Virgin Media – FTTP of providers other analysis, ics ing in coordination with Full Fibre Britain. build organisations, andnon-profit atives, cooper Mayors, Metro governments, local 2,740 11,035 Debt Net As assumed in the Frontier Econom 132 531 Interest Net deployed over 10 over deployed years savings alone if 100% fibre % total Capex delivered by 16.1% 20.2% 95 interest annual at 1.8% Refinanced savings 410 Annual Annual - - - 28 Common­Thomas M. Wealth Hanna & & Ownership Futures: Towards Democratic Public DemocracyMathew Lawrence Collaborative Ownership in the 21st Century ities -have underscored the need to make exacerbated social and economic inequal access to and quality of broadband has coronavirus -where adigital divide over expression.” of freedom to broadband is like a21st century right to of [our] personality is possible.’ The right ety, where ‘the free and full development ensure people can fully participate in soci the 21st century must include to everything Human Rights, “The technological rights of of Declaration Universal The referencing the legal scholar Ewan McGaughey argues, connect, communicate, play and work. As to lead afulfilling life in the digital age: to nising it is now foundational to our ability ised as a 21st century human right, recog connection Decommodifying 2. efficiency ofa Full Fibre Britain led roll-out. steps should betaken to help improve the streamline street works processes; these facilitate digital infrastructure build out and with telecoms providers, to coordinate and engaging for champion’ responsibility with for local authorities to appoint a‘digital called have Commission Infrastructure access to land processes.The National to smooth street works and wayleaves for [110] for 70% of the cost of fibre deployment. stated that road and street works accounts full-fibreconnection. Fibre Britain to ensure all new builds have requiring all developers to work with Full ties, anew obligation should beintroduced side a“right for to entry” tenanted proper to requests for access rights.’ responded not has landlord the but tion, a tenant has requested anew connec to access multi-dwelling buildings, ‘where make it easier for atelecoms companies hold Bill Property) 2019-20, which would Telecommunications (Lease Infrastructure including the of legislation the completing of existing barriers should beaddressed, To this end, measures should betaken Internet access should beorgan Government The previously has To help accelerate roll out, aset [111] The effects of [109] Along ------Universal broadband delivered as apublic would help revitalise rural economies. a million people into employment, and it billion would besecured, it could bring half overcome, aproductivity dividend of £59 between households and regions would be ness Research have found, the digital divide ple: as the Centre for Economics and Busi capacities, the economic benefits are multi and exercise our creative and productive full and thriving in and society part develop and technologiesservices needed to play a side ensuring we all have access to the ship of the UK’s full-fibreAlong network. This should bebased on common owner point of use as atax-funded public service. net connection available to all free at the mate goal should beto make full-fibre inter ulti the agenda, services basic universal through market. the primarily delivered access to broadband aright, not something level - would have to be met. But a full-fi access to the network at the household the network and the costs of distributing a new retail division of Full Fibre Britain. through households, for use the pointat of provided as auniversal public free service connection to full-fibre broadband could be subscription ISP retail providers, to private access arranged via the market through tures and principles. Instead of broadband to beorganised on different payment struc connection enable can - value shareholder than by companies organised to maximise ownership of the infrastructure -rather public complete, UK’s is full-fibre network publicly owned full-fibre Oncenetwork. the public can be built service off the back a of extraction in our economy. And it would challenge akey site for rent flatly on households regardless of income. £30 and £40 ayear), which currently falls fast broadband fees are between typically hundreds ayear on ISP subscription (super many households would save also service - the costs of operating and maintaining To that end, of as an part ambitious To deliver this, primary costs two Full-fibre broadband delivered as a ------29 Common­Thomas M. Wealth Hanna & & DemocracyMathew Lawrence Collaborative porate principles of participatory planning, sentatives. Finally, this system should incor from elected worker and community repre including representation, board involve also and other interested This parties. should residents, users, including workers, holders approach, with clear roles of different stake This should bebased on amulti-stakeholder term strategic direction of the organisation. long- and values, principles, shape ing that in decision-mak participation social wider ship are needed that embed worker and new models of democratic public owner Instead, operation. and governance ning its underpin principles democratic core have and managerial; rather, the company should excessively centralised, top-down, political, of public ownership that were too often not replicate the mistakes of older forms Democratic governance of Full Fibre Britain infrastructures digital of control cratic Ensuring3. accountability and demo tures of the 21st century. is able to connect to the digital infrastruc location, or income of regardless everyone, it will address the digital divide by ensuring full-fibre network is complete. In doing so, proposed Digital Tax, Services once the ing potentially from revenue raised by the be paid for out of general taxation, includ therefore should all for households access Universalservices. full-fibre broadband ing bundled packages and other bespoke ers could bepermitted to continue provid though ISP provid private ISP providers, tal poll in tax’ the form of paying private progressive taxation rather than aflat ‘digi essential like service broadband through fairer to distribute the costs of accessing an broadband via afull-fibre It network. is be met one way or the other to provide years. ating expenditure of £579m over p.a. thirty oper suggests Commission Infrastructure costs once built: analysis for the National maintenance low relatively has network bre [112] New models of ownership should These costs plus access costs must ------ities prior digital National Local and deciding and debating for platform digital new A include: this could achieve ing our digital future. Preliminary steps to are able to genuinely participate in shap inequality of use, and that communities inequality of access is not replaced by Steps must also betaken to ensure that infrastructures. digital of development the ability, and arights-based approach to requirements around just access, afford stronger with providers, infrastructure tal overhaul the regulatory standards of digi full-fibreOfcom network, andDCMS should Britain accelerate the build out of a 100% enterprise. the of to inform the goals, methods, and practices communities wider and workers involving ratise innovation, supporting the emer so stepsstarted must betaken to democ get to challenges particular face platforms the fibreAlternatives network. to corporate who will run the to be built services on top of of question remains the there there, live for their digital future with the people who tives initia community for Funding support and and air pollution. noise citizens monitor to for city the out through networks sensor or bike system dockless digitally-enabled a grids, energy include smart could This challenges. urban to tackle key social and environmental mined plan for its digital future in order deter collectively a develop to authority ties could provide the basis for each local tal infrastructures are used. These priori digi how for priorities decide and debate unemployed) to or employed seekers; immigrants asylum (whether or citizens, online space for everyone living in the UK WeDecide.gov.uk could function as an internet access, an online platform called Full Fibre supporting Alongside Once an area has co-created aplan With full-fibre guaranteeing equal ------30 Common­Thomas M. Wealth Hanna & & Ownership Futures: Towards Democratic Public DemocracyMathew Lawrence Collaborative Ownership in the 21st Century ations of the potential social and political of access should bemirrored in consider strategy for fibre roll out to ensure equity technologies monitor fibre-based An expanded regulatory framework to commons. edge public libraries to support a digital knowl for increasing the funding and mandate of model: public libraries. Apriority should be guidance, then we already have agood some with matters these explore public can and we see aneed for spaces in which the consider computing as "media for thought," being literacy-like rather than tool-like. If we ing is in some ways better thought of as cluster. tech thriving ecosystems, such as the scale help can which implement agendas, Deal regions in the UK are ideally placed to and social innovation - is an exemplar. City co-creation digital incentivise that forms public plat of creation the and movement, in platform cooperatives and the maker investment models, circularfor economy ogies to address social challenges, support the promotion of the use of digital technol through - sovereignty” ing “technological digital age. Barcelona’s agenda - of reclaim in the thrive enterprise of forms these help companies to ensure that these spaces can ness, co-operatives, and employee owned busi community for – stakeholders other – either directly or in coordination with spaces with 5G broadband infrastructure mandated to provide co-working and maker non-corporate contractors. ment procedures introduced to prioritise new ethical standards to public procure and provided, through umbrella networks available, support and capacity-building new sources of financing must be made community-led provision service to grow to enable anew ecosystem of public and community initiatives and SMEs. In order gence of worker platform cooperatives, The improved monitoring of and Finally, the potential of comput Local government should be ------primarily on privacy or bias, specific bans ing new features or safeguards focussed improve existing technologies by introduc Amsterdam. by the DECODE project in Barcelona and whom, and on what basis, as demonstrated tions, which data they want to share, with over the data they produce in their loca this context to give people greater control chain and cryptography) can be used in Decentralised technologies (such as block be owned by private operators. service context of using public cannot services ing to individuals that is generated in the ensure that the networked data pertain damage. lance, social control and environmental includingsurveil invasive networks, fibre harms of the technologies built on top of their local area. Free workshops and "hack on projects to shape the digital future of and resources for people to collaborate participation and provide the space, tools could be used to eliminate barriers to digital training programmes community in every workspaces –and "Digital Stewardship" prototyping rapid and fabrication digital – network of "Fab Lab" innovation centres can betaken to address For it. instance, a and regional inequalities. Anumber of steps divide correlates strongly with class, racial This adoption. and inequalities use in to due persist would divide digital the tion, it is likely that without strategic interven home, which guarantees equal access, communit every Digital skills and inclusion programmes in tion to social good. any contribu material demonstrate cannot apply to carbon-intensive technologies that ocratic ends. The same principle should undem oppressive, in highly use for tial recognition which have particularly poten introduced on technologies such as facial or highly stringent regulations could be Rather than "tweaks" that seek to government should legislate to The Even after delivering fibre to every every to fibre delivering after Even y ------31 Common­Thomas M. Wealth Hanna & & DemocracyMathew Lawrence Collaborative consider developing public options in vital in vital public options developing consider nication.” resources for social and political commu journalism, develop and funded publicly for interact with one another, provide support platform architecture to enable citizens to tasked with developing asurveillance-free BDC, as set out by Dan Hind, “would be tively by all residents of the country, the lished. Acommon property, owned collec British Digital Cooperative should beestab a oligarchic principlesian over surveillance, sphere based on democratic and egalitar good common the for trum ABritish4. Digital Cooperative and spec net-zero rapidly and justly. structure roll out the UK needs to reach infra digital the on Commission structure National Infra the advise Change should fossil fuels. The Committee on Climate the support of ajust transition away from structure is planned strategically to enable development of broadband and 5G infra recommended that the installation and future supports a net-zero economy, it is fossil fuel extraction. To ensure afull-fibre economy and is intimately tied up with mental to sustaining acarbon-intensive computing to full-fibre - is currently funda sation decarboni to drive infrastructure Digital nologies. disproportionately impacted by new tech ing or which may have been harmed or communities that have difficulties access tion methods will bring tech education to days" using people-guided popular educa government to account.’ to government precisely so that citizens can hold the tion in public speech become possible— broad-based and consequential participa seeking to ‘establish the conditions in which economic, political and cultural democracy, to expand the technical infrastructure for UK -would work with ademocratised BBC branches among each of the nations of the To build a digital and communicative cloud from - infrastructures Digital [113] The BDC -which would have [114] It should also ------universal, affordable high quality mobile affordable high quality universal, goal of spectrum allocation is to ensure spectrum deliberately scarce. Yet if the market maintained by Ofcom. This keeps via auction through an actively constructed others, among networks, communications private and operators, phone mobile ers, broadcast radio and television to allocated currently is ownership, common in once digital economy. That resource, which was inpublic education. role that went along with and it, can play akey with the BBC Micro and the programming pioneer in early computing literacy efforts democratised BBC, which itself was a ing. The BDC would work closely with a oly and shrink the space for data harvest challenge would that oligop existing the a licensed Linux-derived operating system from apublicly owned payment system to nated by rent-seeking private monopolies, domi currently infrastructures technical path to consider, explored in more detail consider, to detail path in more explored over the direction of the economy. One icant revenue and infrastructural power infrastructures, a source of signif both very computing cloud their of dominance this is than urgent ever. more of element critical A to challenge the power of “Big Tech” will be power of the universal platforms, the need virus the consolidation and the reach and public A 5. cloud infrastructure for the common good. resource to bedemocratically managed the spectrum, reclaiming it as a shared based approach to the management of rent-seeking, and ultimately acommons- are organised to improve not boost service cial use, ensuring allocation size and caps allocation for social rather than in greater detail, but it could include greater efficiency. Future modules willexplore this tives to better reach goals of equity and potential alterna of consideration prompt should networks 5G and connection bre and telecoms anew era of services, full-fi arguably the most vital resource of the The electromagnetic spectrum is With one likely effect of the Corona ------32 Common­Thomas M. Wealth Hanna & & Ownership Futures: Towards Democratic Public DemocracyMathew Lawrence Collaborative Ownership in the 21st Century public cloud infrastructure would: infrastructure public cloud New Deal-backed program for building a produced data. To that end, an initial Green of troves cleaning vast government's up the digital age should undertake a similar task: improvements. AGreen New Deal for the the wilderness, building trails and land and training millions of people to steward hiring Corps Conservation Civilian the with ‘clean’ up public spaces for common use, The New Deal provided jobs to people to ble in many places, but publicly owned. parks, in the 1930s wild -- and inaccessi with US Federal lands, including national universal. In this sense, there is an analogy or unorganized substantially remains it but - from national to local is rich and vivid, government environment the of data The ing databases and preparing it for use. - the process of detecting and correct an enormous amount of “data cleaning” require this would infrastructure, cloud sal formats to behosted necessary on a ment data could beorganised in univer of state capacity. To ensure that govern the ‘outsourcing state’ and the building up an approach would require a reversal of that are continually being produced. Such of government data that already exist, and to host and perhaps process the vast troves infrastructure" could becreated and used monopolies should bescaled. provide an alternative to dominant private public ‘cloud option a infrastructure’ to ambitiously, more second, And utilities. key as public providers regulating cloud then and businesses infrastructure cloud major tech companies to separate off their US and EU authorities. First, by requiring can betaken, working in partnership with Two infrastructure. computing measures public cloud a creating is UK, the for ments in relation to the US but with parallel argu • ment Digital Services. This should also also should This Services. Digital ment Govern the of work the extending and building level, government local to tion administra government devolved and format government data, from a UK Train and hire people to clean and The initial stages of a"public cloud ------that has largely disappeared. For exam of basic research in and the 60s, 70s 50s, this paper were made possible by aregime systems and infrastructure discussed in infrastructures is vital. Indeed, the very nancialised basic research into digital Agency. Long-term, well funded, non-fi proposed Advanced Research Projects infrastructure should be linked to the industrial strategy. mission-oriented wider therefore beakey goal of the UK ARPA and of digital infrastructure technologies should generation next the Developing throughs. that are required for true qualitative break the timelines and with the funding levels on research basic conducting present, the need to invent the future, not just upgrade with the technologies of the present. We also tech, but it is principally retrofitting the UK ment of a public cloud may appear high- Labs. ended the “basic” of research part at Bell example. Breaking up Bell effectively Labs thinking. DARPA -the US is another related from the pressures of profit or termshort basic research that was entirely divorced high prices were understood to also fund ment-backed monopoly, and the seemingly day. It worked because Bell was agovern powers most computers and phones to this the transistor to the operating system that relevant to telecoms and computing, from inventions of variety wide a for responsible ple, the research institution Bell was Labs • • be used to expand services. stage of building apublic cloud, and can first the exercise complete would This a free and open format. will not always suit publishing data in data are valuable for the many, which should beto ensure the end-uses of that data; management of access cloud physical infrastructure to host Train and hire people to build apublic sities. extend to public bodies, such as univer The development of a public cloud public cloud a of development The Full-fibre develop the and roll-out ------

33 Common­Thomas M. Wealth Hanna & & DemocracyMathew Lawrence Collaborative affordability, as well as reduce the power providers.” partnership public-private or public providers by broadband of sion and local entities from blocking the provi Community Broadband Act, “prohibits state lators. by ahandful of mostly Democratic legis Senator Booker Cory (D-NJ) and co-signed and (D-CA) Eshoo Anna Representative such legislation has been introduced by required. In recent Congressional sessions, be would legislation Congressional that state-level preemption laws on its own, and have the legal authority to ban or roll-back system has ruled that the FCC does not court the mentioned, previously As level. owned broadband networks at the local public community and on restrictions state-level ends that legislation federal they so choose, we recommend passing if networks broadband owned publicly nities retain the authority to establish (US) Proposals Policy structure Infra Digital 6 networks broadband community and municipal operate and to develop funding Federal Overturning state-level pre-emption laws pre-emption state-level Overturning [115] In order to increase access and In order to ensure that local commu This legislation, known as the as known legislation, This

-

[116] - - -

ensure that both the program and its recipi adding additional to conditions recommend entities and ensuring high speeds, we bility to public, cooperative, and nonprofit tions in Warren’s plan around limiting eligi ing 10 percent). the local entity required to pay the remain (with networks such constructing for costs program would have paid percent 90 of the The organisations. non-profit and atives, open only to local governments, cooper billion federal grant program that would be beth Warren, for instance, proposed an $85 Eliza cycle. during 2020 election the nees nomi Presidential Democratic several by networks. Such aprogram was advanced public or cooperatively owned broadband municipalities that are seeking to build fundingthat for communities provides and we recommend passing federal legislation and control of large telecoms corporations, broadband networks broadband community and municipal for programs State funding and technical assistance broadband internet. moving in the direction of free, universal free, or at highly reduced rates –thus for towardsthey providing move service that condition the on networks broadband funding to existing local community owned operational ongoing program)rate provide program (or, perhaps, asimilar but sepa a such that recommend we networks, the development of such local broadband Agencies). tite board structure of Community Action (perhaps similar to the required tripar structures governance democratic more receiving federal support must implement It may also include provisions that any entity transparency and accountability standards. conditions as well as establishing robust ute funding and monitor compliance with help the program decide how to distrib holder planning and oversight board to multi-stake a establishing instance, for values and governance. This may include, participatory and democratic embrace ents Lastly, in addition to supporting In addition to supporting the condi [117]

------34 Common­Thomas M. Wealth Hanna & & Ownership Futures: Towards Democratic Public DemocracyMathew Lawrence Collaborative Ownership in the 21st Century rationale for these conditions is simple: is conditions these for rationale The service). provide smaller ISPs and ships where the public retains ownership priately structured public-private partner or nonprofit entities (and, perhaps, appro ments exclusively to public, cooperative, public resources and broadband invest recommend that state governments direct program suggested by Senator Warren, we and speeds. Similar to the federal level that don’t provide the service necessary telecommunications corporations large However,service. this is often routed to attempt to expand broadband internet states already invest public money in an many mentioned, previously As ment. requirements. help navigating state and federal regulatory backroom operational infrastructure, and management, planning, project networks, and residents seeking to establish public organizing support for local communities The latter could include educational and new publicly owned broadband networks). resources to educate the public and create at the local level, communities use these publicly owned broadband networks (and local, of development the support to funding and technical assistance programs establish governments state that mend being provided by the federal govern (and/or funding any administer match) Such programs could also help At the subnational level, we recom - - - - - this does not explicitly allocate funds to Matt Bruenig and Angela Cummine. Angela and Bruenig Matt in both the US and UK, including, recently, wealth fund has been proposed by experts trum leasing to asocial catalyze or citizen’s other assets. Using proceeds from spec ate criteria) in companies, real estate, and several US states) and invest (with appropri in numerous other countries (as well as like that exist funds wealth sovereign the or funds. These funds could beorganized a democratically managed public trust fund wireless spectrum auctions bedeposited in most, if not all, federal revenue derived from that directing legislation pass Congress proceeds Democratic public trust funds for wireless to private corporations. ratherest, than simply providing asubsidy public ought to retain an ownership inter if public resources are invested then the less broadband development. broadband less C-Band spectrum be allocated to rural wire percent of the proceeds from the sale of trum Act) that included aprovision that 10 introduced at the end of 2019 (5G Spec was legislation mentioned, previously As band, and local journalism and media. infrastructure, such as municipal broad tasked with making investments in digital cratically managed fund (or funds) also be At the federal level, we recommend We recommend that this demo [119] While [118] ------35 Common­Thomas M. Wealth Hanna & & DemocracyMathew Lawrence Collaborative down or consolidating operations transfer transfer consolidating operations or down auction proceeds in exchange for shutting (either public or private) receiving spectrum ing that any local media station or company ensur legislation developing recommend and journalismmedia State and local trust funds local to support ment program, if we so desired. Warren’sof develop ambitious broadband nue could, for instance, “pay for” the bulk the federal government and that this reve in between $30 and billion $60 in revenue to result to predicted is alone auction C-Band nalism, it is remembering worth that the development and local media and jour priate funding to both public broadband should, and appro simply government can, in handouts to corporations, the federal plans and hundreds of billions of dollars multi-trillion spending dollar crisis-related community centers. training courses in schools, libraries, and rural communities) and free education and maker spaces (especially in low income and including public or cooperatively owned divide, digital the facilities address that be for the funds to invest in strategies and to support it.” local news reporting and innovative ways that would make grants for advances in could help “finance a Fund for Local News that proceeds from spectrum auctions suggested have Michaeland Schudson control. For instance, Leonard Downie Jr. cuts, market concentration, and corporate and news in order to reverse decades of could beallocated to support local media suggested that spectrum auction proceeds revenue. auction could bedone differently with spectrum corporate actors), it is an example of what band means it would likely beallocated to networks (and its focus on wireless broad publicly or cooperatively owned broadband media and communications fields have communications and fields media At the state and local level, we While we believe that in an era of Additionally, many in experts the [120] Another option would option Another [121]

------third of what the state received from the million (which itself was only around a allocated was whittled down from $100 amount the however state, the in signed successful in getting legislation passed and tion needs.” Free Press and its allies were ute grants to “meet community distrib would that culturaland leaders” seen by a multi-stakeholder board of “civic pendent, state created trust fund over state. public licences TV that were owned by the on New Jersey, and in particular the four that ended in 2017. That campaign focused mentioned broadcast spectrum auction during previously the organisations other journalism. and public independent or media local, cally managed trust dedicated to funding a portion of those funds into ademocrati able wireless broadband and to 5G service sector and provide accessible and afford communication wireless in the competition sector cations A public option in the wireless communi projects.” and organisations media community-led and “community-centered to grants annual philanthropic foundation makes that now air. It then used that money to create a in exchange the auction off trum going for $131.5 million from the broadcast spec Channelin the (WYBE city 35). It received IPMF formerly, public broadcaster a was, Public Media Foundation in Philadelphia. example to draw from is Independence (and not ademocratic public trust), another representatives. professional and academic, government, a multi-stakeholder board consisting of with organisation non-profit a Consortium, will bedistributed by the Civic Information between $1 and $2 million. Those funds spectrum auction), to $5million, to finally demands made by the Free Press and [122] This is similar to the campaign In order to provide badly needed legislation by required not While Free Press proposed an inde [124] [123]

------36 Common­Thomas M. Wealth Hanna & & Ownership Futures: Towards Democratic Public DemocracyMathew Lawrence Collaborative Ownership in the 21st Century communications corporations. communications the plan after an from outcry the wireless [129] Eisenhower Nationalthe Highway System." network to "the 21st century equivalent of largely state owned). munications companies are, of course, dominance in the sector (China’s telecom related to China’s growing technological economic and national security concerns and centralized 5G due to single, a nationalised creating considering Trump seriously the was that Administration KfW). and 17.4 by the public investment bank the German state, 14.5 percent by Bund, (31.9through vehicles various by percent government German the by owned publicly Telekomsche will bearound 42 percent owned by Deut merger with Sprint, the new T-Mobile USA United States. For instance, following the ownership), including some operating in the (or significant share have government munication companies are publicly owned sounds. Around the world, many telecom- tions company is not as far-fetched as it close to free as possible.” and broadband access ubiquitous and as making and nonprofit “cellphonenetwork,” tions “cartel,” creating a“a publicly owned breaking the uncompetitive communica McChesneyRobert has called for; namely Communications Professor what of tion ments. It could also beastep in the direc other needed public and invest services cross-subsidize to revenue generate and and stimulatewould costs innovation, lower that pressures competitive provide tion, reduce corporate power and concentra sector could help address market failures, communicationsoption” wireless in the tions company. The existence of a “public its own publicly owned telecommunica mend that the federal government create socio-economic background, we recom all Americans regardless of geography and likening the proposed new, nationalised Administration the was memos, leaked However, the Administration scrapped [127] A publicly owned telecommunica Moreover, in 2018 it was reported [126] ; which itself is majority [128] [125] According to [130]

------telephone and telegraph industries were granted to the Post Office. In fact, when the authorisation) constitutional (via Congress functions the of extension logical a were and radio) should bepublicly owned and (atnologies that time, telegraph, telephone, barons). Namely that communication tech Age” of corporate monopolies and robber 19th and early 20th centuries (the “Gilded place in political discourse during the late long-standing argument that was common of theparts country.” with a mandateservice to rural better serve build out anational public 5G wireless utilities to public and electrical providers could also work with municipal broadband writesMarx that a “postal telecom service and existing municipal broadband systems, new of development the supporting to tion public agency, like the post office. In addi existing an to communications functions recently suggested, would be to add tele ard and Sascha Meinrath wrote in 2009, companies. off the cleared up spectrum to private simply re-allocate federal users and auction tion. The traditional approach has been to growing needs of wireless communica of accessing this spectrum to feed the makers have grappled with the challenge underutilized. For years, and experts policy government entities and, by many accounts, cant portion of the spectrum is assigned to Aspreviouslyservice. mentioned, asignifi is utilized to support wireless broadband spectrum government excess which by cle telecommunications company be the vehi corporations. wireless existing rural populations that are underserved by nia or New York) or states with significant significant financial resources (like Califor be particularly relevant in large states with might This communications companies. conceivably, create their own public tele ate (while radio was given to the Navy). were turned over to the Post Office to oper briefly nationalised during World War I, they Another option, as Paris Marx has has Marx Paris as option, Another We also recommend that this public State governments could also, [133] However, as Victor Pick [131] This builds This a on [132] ------

37 Common­Thomas M. Wealth Hanna & & DemocracyMathew Lawrence Collaborative car companies. airlines to rental and services, delivery and from restaurants and shops, to shipping used by thousands of other companies, of local economic infrastructure that are pieces critical are They governments. local privatisation program), usually by state and ful of airports currently in the FAA’s airport publicly owned (the exception are ahand cial airports are required to be, and are, vast majority of the or 500 so commer cial airports. In the United States, the governed and publicly owned utilities. nized as decentralised and democratically computing, once divested, should be orga right), infrastructure/ intheir own lies cloud will quickly consolidate into large monopo for-profitseparate, businesses (that likely ning off cloud infrastructure/computing to recommend that rather than simply spin abuse is most egregious. Second, we area where corporate consolidation and is considered by many to experts be the computing which, as previously discussed, it would focus on cloud infrastructure/ but diverge in critical two ways. First, This would build on Senator Warren’s plan, infrastructure/computingcloud business. companies over acertain size divest their companies by specifically mandating that Tech Big up break to legislation developing into public utility a computing services Break up big-tech and turn cloud and economic benefits. public control and delivering ahost of social opment while at the same time retaining devel communication wireless support to company would beone such creative way telecommunications owned publicly new or underutilized federal spectrum with a and social benefits.” enabling awide range of creative new uses while reallocations additional frequency could help obviate the need for significant “strategic reuse of government spectrum A good analogy would becommer At the federal level, we recommend [134] Sharing unused unused Sharing Common-wealth.co.uk ------ment and then transferred (or sold on) to applied to cloud infrastructure/computing. same principles could, and should, be These over, making. decision key economic that the public retains asay in, and control ensures and investments, economic and public services on jurisdictions use to local for revenues generates infrastructure, the what level playing field for those who use some a for allows infrastructure underlying key point is that public ownership of the tion, accountability, and transparency, the desired in terms of democratic participa in this series on data). will bediscussed further in alater module utilities (which or public enterprises such all any and of operation the governing tion would need to beincluded in the legisla and data protection and privacy regulations however,parameters collection data robust computing In all services. circumstances, cloud affordableviduals non-abusive and indi and start-ups), entrepreneurs, cially an entity could provide companies (espe full reconcentration of the market. Such that would act as a public option to prevent computing enterprise at the federal level same time create apublicly owned cloud divested to private companies but at the allow cloud computing infrastructure to be to be would option Another governments. regional consortiums of states and/or local to bepurchased by the federal govern businesses computing cloud divested legislation) federal aforementioned the one possibility would beto require (via to public ownership could be achieved, infrastructure cloud converting which publicly owned utilities) leave alot to be While there are multiple ways in While airports (and many other ------38 Common­Thomas M. Wealth Hanna & & Ownership Futures: Towards Democratic Public DemocracyMathew Lawrence Collaborative Ownership in the 21st Century References [online] FCC. Available at: https://docs.fcc.gov/[online] at: Available FCC. (2019) Report. 2019 Deployment Broadband 10. org/papers/w26982.pdf https://www.nber. 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Touchberry, R. (2020). Congress Eyes Eyes (2020). Congress Touchberry, R. (2018). L. Gonzalez, Malicious Michigan Fisher, D. (2016). to Preempt Bid Loses FCC (2019). K. Détente: Kienbaum, Preemption The (2006). M. G.F. Rose, Lloyd, and [online]. Auctions. About (2006). FCC Wireless The Instruments, UK Statutory UK Communications Public Acts, General and technologies sharing Spectrum (2019). N. in to rein way Srnicek, only The 40 Common­Thomas M. Wealth Hanna & & Ownership Futures: Towards Democratic Public DemocracyMathew Lawrence Collaborative Ownership in the 21st Century 51. 2020]. April 8 [Accessed can-break-up-big-tech-9ad9e0da324c https://medium.com/@teamwarren/heres-how-we- Tech. Up Big Break [online] at: Available Medium. 50. 2020]. April fcc-approves-public-c-band-auction/ [Accessed 7 at:https://www.satellitetoday.com/5g/2020/02/28/ Available [online] Auction. ViaSatellite. C-Band 49. 2020]. April headlines/cbo-scores-5g-spectrum-act [Accessed 7 https://www.benton.org/ at: Available Society. and Broadband for [online] Institute Act. Benton Spectrum 48. ownership-of-the-public-sphere/ 47. 2020]. 3April [Accessed commercialism archive/the-problem-with-our-media-is-extreme- Available at: https://www.thenation.com/article/ Commercialism. [online]Media is Extreme Nation. 46. 2020]. 3 April / [Accessed broadcast-incentive-auction fcc-announces-the-results-of-the-19-8-billion- commlawmonitor.com/2017/04/articles/internet/ https://www. at: Available [online]Auction. Drye. Kelly Incentive $19.8 the of Results Broadcast the Billion 45. 2020]. 3 April [Accessed spectrum-what-it-is-and-why-you-should-care/ Available at: https://www.cnet.com/news/wireless- CNET. care. should [online]. you why and is, it What 44. stimulus-phase-1495153 2020]. 3April [Accessed infrastructure-projects-like-5g-next-coronavirus- update/ reaching-100-superfast-broadband-march-2020- in https://www.gov.scot/publications/ see Scotland, 54. about-broadband-in-wales https://gov.wales/broadband-in-wales/ see in Wales, 53. uk/research-briefings/cdp-2017-0232/ 2017,November https://commonslibrary.parliament. 21 Library, Commons of House in Scotland', communities to rural G (2017) broadband of 'Roll-out 52. 2020]. April 8 [Accessed elizabeth-warren-tech-companies.html https://www.nytimes.com/2019/03/13/technology/ Tech.Up Big [online] at: York Available New Times.

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McGaughey, E. (2019) E. McGaughey, ‘21st century Ibid. Frontier Economics (2018) Future Telecoms Ibid. broadband (2020) ‘Full-fibre G. Hutton, J. (2019) Grierson, and 'Full- R. Partington, J. (2014) McGregor, killed Thatcher ‘How D. (2019). Wakabayashi, Leverage: Prime Richter, F. $100 Leads (2020). Amazon J. (2019). Sallet, America’s for Broadband the (2020). N. 5reasons Economides, J. (2018). Eggerton, Spectrum No Is There Kelly, (2020). M. T-Mobile Sprint and muninetworks.org/content/municipal-ftth-networks [online] https:// at: available Networks. FTTH 95. 2020. April 30 [Accessed muninetworks.org/communitymap [online] https:// Map. at: available Network 94. TheEuropeanFrameworkForRegulat.pdf eprints.lse.ac.uk/100360/1/Cave2019_Article_ (1): 55 Organization, Industrial 47-62,of pp. http:// appraisal’, Review a25-year telecommunications: regulating (2019) for framework European The 93. broadband/2-6.pdf 2013,Outlook Table http://www.oecd.org/sti/ 2.6, 92. 2020]. 6April [Accessed nationalize-amazon/ thenation.com/article/politics/usps-profiteering- [online]Service. Nation. Available at: https://www. 91. blueprint-for-a-green-new-deal https://www.common-wealth.co.uk/reports/ Wealth, Deal’, New Common aGreen for (2020) ‘Blueprint 90. 10 2020]. May [Accessed overdue bt-shocks-shareholders-but-fibre-investment-is-long- com/business/nils-pratley-on-finance/2020/may/07/ https://www.theguardian. at: Available Guardian. [online] The overdue. long is investment fibre BT 89. 2020. May Accessed Eikondatabase. Refinitiv Reuters Thomson 88. Press. Yale Haven: New Age. University Digital the for Deal ANew (2019).D.E. Neutrality: Net After 87. 86. 85. 2020.. May Accessed Eikondatabase. Refinitiv Reuters Thomson 84. CPI England calculator. of Bank using adjusted Inflation 340. p. , British the of Impact Welfare the :Evaluating Divestiture Great The (2004) Massimo Florio, from taken are from data 1985-1994 figures accounts; annual BT 83. tomorrow-telecom-networks.pdf www.frontier-economics.com/media/2232/ Telecoms Networks’, Frontier https:// Economics, 82. technological-environmental-and-co-operative/ oureconomy/21st-century-human-rights-are- 2019, https://www.opendemocracy.net/en/

Community Networks (n.d.). Municipal Networks Community (2020). Community Networks Community T. Valletti, and C., Genakos, M., Cave, OECD (2013) OECD Communications Postal the (2020). to Save M. How Davis, M. Lawrence, and M., Brett, Buller, A., dividend, the (2020) Pratley, N. Forget from derived data of Analysis Source: V. Berman, Pickard, and see: instance, For Ibid. Ibid. from derived data of Analysis Source: 1995-2019 from Data from Source: derive (2018) M. ‘Tomorrow’s Duckworth, 42 Common­Thomas M. Wealth Hanna & & Ownership Futures: Towards Democratic Public DemocracyMathew Lawrence Collaborative Ownership in the 21st Century engaged in designing new services for customers. for customers. inengaged designing new services is and services, of range their across systems IT and networks platforms, BT’s operates and creates which segment internal asmaller is technology BT statements. Group’s to BT financial year, according in FY2018-2019, Group BT the previous the 30% and for profits operating 25% overall of about recorded However, it revenues. external of 9% only generates it so company, and the of segments other charging from come revenues Openreach’s of half than Consumer, and Enterprise.Global More Services, division, which is the network Openreach, divisions: 104. data/file/727890/FTIR_Annex_A_-_FE_Report.pdf government/uploads/system/uploads/attachment_ 13 July 2018, https://assets.publishing.service.gov.uk/ DCMS, for A-areport Annex Review: Infrastructure 103. 102. data-in-the-platform-age rethinking-value-access-and-control-of-public-sector- common-wealth.co.uk/reports/digital-public-assets- https://www. data”, Wealth, sector Common public of control and access value, AssetsRethinking 101. 100. socialism org/issues/II116/articles/evgeny-morozov-digital- Review, 116, Mar/June 2019, https://newleftreview. Data', Big Left of New Age in the Debate Calculation 99. institute_for_global_prosperity_.pdf sites/bartlett/files/universal_basic_services_-_the_ https://www.ucl.ac.uk/bartlett/igp/Prosperity, UCL Institute Services', Basic forUniversal Global for Aproposal future: the for prosperity ‘Social 98. 2020]. the-internet-as-a-human-right/ [Accessed 23 April www.brookings.edu/blog/techtank/2016/11/07/ https:// at: Available [online] right. human Brookings. (2016). D.M. West, and C. a as Howell, internet The See: frontiers.” of regardless and any media through ideas and information impart and receive to seek, and interference without opinions to hold freedom of opinionfreedom and this expression; right includes to right the has “everyone to read Rights Human of Declaration 19 Universal the of Article amended it in 2016 including right, human when abasic to be access internet declaring toward steps several taken 97. org.uk/ 96. 2019. 5 September [Accessed

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Cullen, D., Jaffré, Y., Frizé, C., and Sheehan, Sheehan, D.,Jaffré, and Cullen, C., Frizé, Y., (2019) McGaughey Ewan ‘21st century Toolkit, Works 23 May Street DfT, DCMS, (2019) G. Hutton, "Telecommunications Frontier Economics (2018) Future Telecoms J. (2019) Ford, rue may “Investors term long on based is rate free Risk Hall, D. (2019) Benefits Paper: ‘Discussion 43 Common­Thomas M. Wealth Hanna & & DemocracyMathew Lawrence Collaborative Could Save Journalism. [online] Free Press. Available Available [online] Press. Journalism. Free Save Could 124. 2020]. 6April [Accessed auction/ https://fortune.com/2019/10/17/5g-c-band-fcc- at: Available [online] Costly. to Be Fortune. It’s Going But Airwaves, More Needs Industry Wireless The Battle: 123. 87 p. Press. New York. New It. to Fix Done be Can What and Journalism of Collapse Turn The Please Lights: the Out Reporter V. Last the Pickard, R.W. Will and McChesney, Journalism. of American In Reconstruction The 122. 2020]. 6April [Accessed funding-for-rural-broadband-clears-senate-committee releases/gardner-measure-to-provide-substantial- https://www.gardner.senate.gov/newsroom/press- [online]. at: Available Committee. Senate Clears Broadband Rural Funding for Substantial Provide 121. Press. Yale Haven. New University People. the for People the by Managed be Should Funds Sovereign (2016). A. Cummine, (and Why How) Wealth: Citizens’ 2020]. 6April [Accessed social-wealth-fund/ at: https://www.peoplespolicyproject.org/projects/ Available [online] Project. People’s Policy America. 120. 2020. 6, April Hanna, M. Thomas with phone interview Pickard, Victor Pickard. Victor of guidance and expertise the for grateful are 119. 2020]. [Accessed 6 April rural-america-94e3a80d88aa medium.com/@teamwarren/my-plan-to-invest-in- https:// [online] at: Available Medium. America. 118. 2020]. 6April bill/2785 [Accessed www.congress.gov/bill/116th-congress/house- 2019. https:// at: Available [online] Congress.gov. 117. 2020]. 6April [Accessed summary www.govtrack.us/congress/bills/115/hr4814/ 2018. of Act [online] GovTrack. https:// at: Available 116. 2020. 27, February Hanna, M. Thomas with correspondence email Mitchell, Christopher guidance. and expertise, assistance, their for We grateful are Reliance. Self Local for Institute the at colleagues his and or informed bydeveloped Christopher Mitchell many of here the have suggested policies been 115. 114. 113.

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Selyukh, A. and Rampton, R. (2013). R. Rampton, and Obama A. Selyukh, T.M. Hanna, (2019). of AHistory Pickard, V. and Meinrath, S. (2009). (2009). V. S. Meinrath, Pickard, and and Democracy Collaborative Wealth Common by Produced Ink use. and mininimize paper This PDF to designed has been recycled Paper printPlease on