Is Washington Abandoning Small Businesses and Consumers in Rural America?

Is Washington Abandoning Small Businesses 

and Consumers in Rural America?

I generally am not political if I can avoid it. I believe each party has solid points of contention and the best laws are created through negotiation of the issues between parties. Without debate and negotiation, the result is improperly vetted laws and regulations. We haven’t seen a lot of political cooperation in the last six years. It is no secret, large corporations continue to sway legislation (from both parties) with their bulging pocketbooks for the sole reason of making their pocketbooks bulge even more. Legislation is crafted with the help of corporate lobbyists to eliminate or minimize competition. Once competition is eliminated, there is little incentive to provide top quality products and services and prices rise. This historical phenomenon has been increasing every year. We are no longer a “government of the people, by the people, for the people” as Abraham Lincoln stated in his Gettysburg Address. We have morphed into a “Government oblivious to the people, managed by the corporations, for the corporate profits”, a country where the rich get richer and the poor get poorer, while the middle class pays the way for both extremes.

As I evaluate the 2012 Election Results, it is apparent the Democratic Party carried a majority of metropolitan areas of our nation. Republicans carried the majority of rural states. President Obama carried 26 states or 51.1% of the popular vote. The total was President Obama - 65,915,796 to 60,933,500 for Romney, a difference of just under 5 million votes. President Obama narrowly won in Michigan, Minnesota, New Mexico, Nevada, Pennsylvania, Colorado, Florida, Iowa, New Hampshire, Ohio, Virginia and Wisconsin. I point this out because each of these states has large areas of rural populations. Why should I care, you say. The answer is Broadband. Most of these rural states are served predominately by fixed wireless Internet providers, otherwise known as WISPs. It is estimated that over 3 million households and businesses receive their broadband service from the WISP industry.

“Small business and entrepreneurs”; a favorite theme of political propaganda, such as this statement made by President Obama in his 2014 State of the Union address: “Let’s do more to help the entrepreneurs and small business owners who create most new jobs in America. Over the past five years, my administration has made more loans to small business owners than any other.” Or this one from President Bush’s 2005 State of the Union address:“To make our economy stronger and more competitive, America must reward, not punish, the efforts and dreams of entrepreneurs. Small business is the path of advancement, especially for women and minorities. So we must free small businesses from needless regulation and protect honest job creators from junk lawsuits.” These statements are nothing more than feel good propaganda and it seems, more often than not, are hollow to the core. These statements remind me of the TV commercial years ago, “Where’s the beef?”

WISPs are the epitome of small business and entrepreneurial spirit. These businesses are and were created in unserved and underserved communities to build broadband access out of necessity where no other telco or cable company provides service. The creation of IP networking and unlicensed spectrum has allowed entrepreneurs to construct telecommunication delivery systems which handle voice, data, video and every other Internet application. No longer is telecommunications only a business for the telecommunication giants of the past. Anyone can build broadband networks today and they do. If the political agendas in the previous paragraph were supported, more unlicensed spectrum would be made available not less, more small business loans would be made available not less, government grants and subsidies would be opened up to all broadband providers and not be reserved for the legacy telecommunication giants. I was always taught that competition was a good thing. Were my government and business law teachers lying to me? Look around you, how many small businesses have been forced out of business in your community by corporate giants and overzealous government regulation?

A relatively obscure event is happening this year which may sway political outcomes this fall and again in 2016. In March, the Federal Communications Commission under direction of Chairman Tom Wheeler, appointed by President Obama, voted to change the rules on a tiny bit of unlicensed spectrum. This seemingly minute change, if left as is, will cripple rural broadband connections for many American families and businesses. These American taxpayers will be forced to return to inadequate dial-up, expensive satellite or mobile wireless connections. The effects to rural economies across the country will not go unnoticed. Come election time, voters will surely vote for the party which is not responsible for this nonsense. It won’t take many failed businesses or consumers which lost their broadband internet connections to sway the election results which were so close in 2012. Will it happen in the 2014 Congressional races? I expect this to become a political “hot potato” this fall.

The rule change was found in Proceeding 13-49. The Commission ordered the change under the auspices of “harmonizing the 5 GHz band” and “eliminating interference to Terminal Doppler Weather Radar systems (TDWR). The commissioners voted unanimously to apply stricter Out of Band Emissions (OOBE) controls to the entire 5 GHz band. I hope I can keep this simple for the readers. The 5 GHz band has operated under different sets of rules for many years. Some parts of the band were for low power indoor use, others had higher power and allowed unlimited gain antennas for use outdoors. This higher powered band is called the ISM Band and specifically ranges from 5725 MHz to 5850 MHz. It has been the “workhorse” band for WISPs, electric companies, schools, county governments and many industries to connect facilities and communities together which are miles apart. The rule change which applies the stricter OOBE limits cuts power levels of this band 75%, essentially destroying previous investments and eliminating hundreds of thousands of miles of critical data infrastructure.

The first justification for the rule change was the “harmonize the band”, in other words, apply the same rules to all previous sections of the band. This change was promoted and championed by the mobile wireless providers and cable companies. These companies wish to dominate this band with low power access points to promote Wifi-offloading for mobile devices and cable Wifi. That sounds alright you say? Which is more important, giving metropolitan mobile users fast connections from their tablets and smart phones to access points or allowing the ISM spectrum to carry on with high power and unlimited gain antennas so our Rural Americans can also enjoy the benefits of broadband? Both purposes have validity but one purpose should not eliminate the other.

The second justification used by the Commission was to “eliminate interference to TDWRs”. These 48 TDWR radar stations operate between 5600 and 5650 MHz. They are used by airline pilots to identify wind shears which may affect landing and takeoffs. I don’t discount their necessity for the safety of air travelers everywhere. They absolutely should not be interfered with. However, the Commission erred in thinking the stricter OOBE limits applied to the ISM band would decrease or eliminate interference issues. The ISM band is at least 75 MHz away from the TDWR spectrum and there have been no reported cases of TDWR interference from radios operating in the ISM band.

The 48 TDWR stations each have a 22 mile radius exclusion zone around them to protect against interference. It is against the law to operate a radio on the frequency of a particular TDWR station within that 22 mile radius. The total land mass of these exclusion zones are less than 2% of the total land mass of the United States. However, the rule change applying stricter OOBE limits is nationwide. This means 98% of the country will lose valuable and efficiently used unlicensed spectrum which provides Internet service, connect schools, connect county/city government facilities, and connect remote facilities for many industries including electric, agriculture, food processing, oil and gas and many others with important data connections. If the stricter OOBE limits to the ISM band were beneficial in eliminating interference to TDWR stations, the FCC’s argument might hold water, but the stricter limits will have no impact whatsoever. The Commission did enforce stricter software security features in the new rules. These security changes will prevent radios from operating in the 5600 – 5650 band and will enhance spectrum sensing capabilities to cause broadband radios to change channels or shut off in case of radar detection. Eliminating TDWR interference can only be accomplished with the advanced security features manufacturers will need to build into the radio software.

The Wireless Internet Service Providers Association and several manufacturers have filed Petitions for Reconsideration with the FCC to change this rule back as it pertains to the ISM band. Many companies and consumers have supported the Petitions for Reconsideration. Only one company, Cisco, has opposed the petitions. Cisco stands to profit from the sale of low powered Wifi type hardware used for Wifi-offloading, hence their argument is merely an attempt to boost their corporate revenues and not necessarily in the public’s best interest. The FCC is currently evaluating the public record of comments and opposition statements. Will they make the right decision and grant the petitions?

If the Commission denies the petitions, millions of Americans will lose their broadband Internet connections in the coming years as current equipment becomes obsolete and needs to be replaced with newer low powered equipment. Data links which connect rural communities across the nation, will no longer be feasible in this unlicensed band. The alternatives are more expensive licensed equipment or building more towers. Neither option embraces the nation’s goals of faster and more affordable broadband, on the contrary, this new rule actually decreases broadband availability and will increase prices. An industry of small businesses and entrepreneurs will have been eliminated with a stroke of the regulatory pen. This will result in less competition, lower service levels and higher costs for many Americans. Without WISP industry competition, the old guard of telecommunication giants will return to unopposed control of FCC and Congressional policy direction. These corporations will have little incentive to build infrastructure in Rural America unless the government allocates billions of dollars in subsidies, ultimately funded by the taxpayers. Meanwhile, the lag time between the loss of broadband access from the WISP industry and new subsidized broadband infrastructure build by the telco and cable industries will cause great heartache for Rural America. Businesses and consumers that depend on broadband access to carry on profitable business operations, take college credit courses online, to school work from home, work from home, pay bills and do banking online, shop online, rent movies online and many other social tools people use to communicate with loved ones and friends will “go dark” and the “digital divide” will expand substantially. I can see the phones light up at rural politician offices already.

The rule change in Proceeding 13-49 actually widens the economic, educational and convenience gap between metropolitan and rural communities. The rule change conflicts sound National Policy on so many levels. Was it an honest mistake by the Commission or one of corporate domination over our political system. Our nation’s economy is already depressed and is balancing timidly on worldwide politics and the global market place. This is an important issue where the people and politicians absolutely need to stand up for small businesses and entrepreneurs. Our nation’s leaders need to take a stand for small businesses and entrepreneurs. They promise it at election time, it is time to hold their feet to the fire. The fire is in the kindling stage now and it can be put out quickly. If not, a raging economic fire will destroy Rural American businesses and create hardship on rural consumers. Either way, we need to encourage the Commission to grant the Petitions for Reconsideration of WISPA and others. Your Congressmen and Senators are a good place to start.