HomeMy WebLinkAboutCOM 0445.001 2010-2012DOMINIC YAGONG
Chair & Presiding Officer
K. ANGEL PILAGO
Vice Chair
October 26, 2011
To:
From:
Re:
HAWAII COUNTY COUNCIL
County of Hawai`i
Hawai`i County Building
25 Aupuni Street
Hilo, Hawai`i 96720
Members of the Hawai`i County C hncil
Dominic Yagong, Chairperson
FRED BLAS
BRENDA FORD
PETE HOFFMANN
DONALD IKEDA
DENNIS "FRESH" ONISHI
BRITTANY SMART
J YOSHIMOTO
v\
Communication No. 445, Informational Talk Regarding ranchis Cable
Television in Hawai`i
Attached please find a hand -out from Mr. Donn Yabusaki, Administrator for the State of
Hawai`i Department of Commerce and Consumer Affairs Cable Television Division to be
distributed at the Committee on Governmental Relations scheduled for November 1, 2011.
DY /la
Serving the Interests of the People of Our Island
Comm. No. 45 I
Ref. to: GRG
Ref. Date NOV 1 2011
DCCA/CATV Division
Broadband Initiative Briefing
Hawaii County Council
Governmental Relations Committee
November 1, 2011
What is the Governor's Broadband Initiative?
Summarizing, the Governor wants to have broadband connectivity available to all
residents of Hawaii, at a speed of 1 Gbs, and at an affordable price. Because we are
physically isolated from the rest of the world, there is a recognition that this effort will
play an important role in advancing Hawaii's economy and government, with the goal of
implementing this by 2018. As part of this effort, he is also mandating that State
agencies leveraging this technology, and utilize the internet more in their interactions
with the general public.
How is this going to be accomplished?
In order to accomplish this, we first need to begin a dialogue with the current broadband
providers to see what can be done to accelerate the investment and deployment of
broadband infrastructure. Our initial focus is to examine the current regulatory and
permitting environment and try to streamline the deployment of broadband without
sacrificing current services and public safety.
Another important part of this effort is to determine which areas within the State do not
have access to broadband service or only have access to slower broadband speeds. While
the federal government has done some work in this area, we are seeking to develop maps
that give a more accurate picture of the State wide situation. In 2010, the DCCA was
awarded an American Recovery and Reinvestment Act (ARRA) grant to map the
availability, speed, location, and technology type of broadband services throughout the
State. The data collected has been used to create publicly available searchable statewide
broadband maps, which are updated as more data is collected. As part of this mapping
effort, we would encourage you to visit our Speed Test website and participate in the
speed test at: http: / /www.hawaiispeedtest.net
How does Hawaii currently compare to the rest of the United States and
Internationally?
Hawaii, and the United States as a whole, lags behind the leading nations economies of
the world that have identified advanced broadband as critical infrastructure for the 21st
century. Given the importance of advanced communications to our islands' future,
Hawaii should and will be the first state in the U.S. to set the bold goal of affordable
ubiquitous service availability. Based on Akamai's The State of the Internet, 1st quarter,
2011 report, the United States ranks 14th globally in average connection speeds. Based on
a survey by the Communications Workers of America in their publication Speed Matters,
Hawaii ranked 31St compared to the other 49 states in 2010.
Has any work started on getting the schools connected?
Using American Recovery and Reinvestment Act (ARRA) grant funds, the University of
Hawaii has begun work to make Hawaii the first state in the nation with direct 1 gigabit
per second broadband connectivity at every public school, every public library, and every
public university and college campus throughout the State.
With all those improvements within the State, don't we need to improve
connectivity to the rest of the world?
That's an important part of the overall effort. In order to increase the bandwidth and
connectivity to the rest of the world, we need to have more transpacific fiber coming into
the State. DEBDT is working with providers and carriers to create financial incentives to
attract the investment needed to bring more transpacific fiber connectivity into Hawaii.
So how does Hawaii County fit into this effort?
Out of all the islands, the Big Island will present the biggest challenges. Being the largest
island, and having the widest range of terrain and population distribution, will make
broadband deployment difficult. We anticipate having to utilize every available
technology to deploy broadband on this island. This includes fiber, copper, DSL, cable
modems, and various wireless technologies. It will also take the cooperation and
coordination of various government agencies and private companies to make this effort
successful.
DCCA/CATV Division
Cable Franchise Renewal Briefing
Hawaii County Council
Governmental Relations Committee
November 1, 2011
What is a cable franchise?
It's a non - exclusive agreement that authorizes a wire line cable operator to construct or operate a
cable system within a certain franchise area. Cable operators are granted access to Public Utility
Right of Ways and in return, must provide certain benefits to the State and the public, such as
public, education, and government (PEG) access channels and funding. Current franchise
agreements in Hawaii are for 15 and 20 year terms.
In addition to this, the cable franchise agreement also specifies the technical and operational
standards that cable operators must comply with, in addition to customer service requirements.
Who negotiates and enforces the cable franchise agreements?
The Cable Television Division (CATV) on behalf of the Director of the Department of
Commerce and Consumer Affairs (DCCA) negotiates cable franchise agreements with cable
operators. CATV also enforces obligations of a cable franchise and ensures cable operators'
compliance with rules and regulations relating to their practices and procedures
What are the typical benefits to the State and public, education, and government (PEG)
that the cable company is required to give?
One of the most valuable benefits is what's referred to as the Institutional Network or INET for
short. This is a State wide computer network that provides connectivity to eligible State and
County government locations, Dept. of Education (DOE) and University of Hawaii (UH)
educational locations. The INET is valued at several hundred millions of dollars, and this amount
grows as new connections are completed. One of the most valuable components of the INET is
the undersea fiber that provides connectivity between the major islands.
In addition to the INET, the cable franchise agreement provides funding to PEG access
organizations and Hawaii Public Television (PBS Hawaii). Cable operators also are required to
provide dedicated channels for PEG Access Television. Note that the Oahu and Maui PEG
access organizations, via separate contracts, provide a small portion of funding to UH, MCC, and
DOE.
Does this cost us anything?
Most of the INET connections are done at cost for time of labor and materials, however, there
are usually a limited number of high priority connections that are designated to be completed at
no cost to the public or State.
The operational funding for PEG Access Television entities and Hawaii Public Television are
part of the franchise fee that cable operators must pay to the State for the use of the Public Utility
Right of Ways, but are allowed by federal law to pass this cost onto the cable subscribers.
Capital funding, however, for PEG Access organizations is a cost that cable operators absorb.
Is it too late to provide testimony and input regarding the Big Island Cable Franchise
renewal?
While public hearings in Hilo and Kona have already been held, and negotiations have already
started with Oceanic Time Warner Cable (Oceanic), the CATV will still consider testimony and
input submitted via fax, email, and regular mail as long as it is received prior to these issues
being negotiated with Oceanic. Because negotiations have already started, in order for us to
consider additional input, it is extremely important that we receive written testimony and input as
soon as possible.
Where can I see the documents related to the cable franchise renewal for the Island of
Hawaii?
The documents are posted on our website at: http: // hawaii. gov /dcca/caty /twefranchiserenewal
Who are the PEG Access organizations?
These are the private, non - profit organizations that are contracted by the DCCA to provide the
PEG Access services to communities in cable franchise areas. Franchise areas roughly follow
the county boundaries within the State. The PEG organizations are: Hoike on Kauai, `Olelo on
Oahu, Akaku on Maui and Na Leo 0 Hawaii on the Big Island.
The CATV Division administers the PEG contracts.
Are the PEG Access organizations part of the cable franchise agreement?
While the funding and channel designations for the PEG Access organizations are addressed in
cable franchise agreements, PEG Access services are part of separate contracts between the PEG
Access organizations and the DCCA.
What services are the PEG Access organizations supposed to provide?
The PEG Access organizations are responsible for providing equipment, facilities, staff, and
training for use in producing programs for cablecast on the cable operator's system. In addition
to this, they are also responsible for managing the channels that are provided by cable operators
for PEG Access programming. The ultimate goals are to provide opportunities for persons to
express themselves (1st amendment free speech) and also provide programming that helps to
build community. There is a recognition that programming of this nature could not exist in a
purely "for profit" environment, so there is a need to make resources available. Recognizing
that each community is unique, it is up to PEG Access organization to address the individual
needs of the community and determine how best to serve this need.
Are we able to give input into the selection or operation of the PEG Access organizations?
All of the current contracts between the DCCA and PEG Access organizations are scheduled to
expire at the end of 2011. The DCCA has just started the process under which each current PEG
Access organization will be allowed to apply for a new contract if it wants to continue being
designated as the PEG Access organization for its present cable franchise area. Once that
application has been received, reviewed, and accepted, a public hearing will be scheduled in each
franchise area to receive testimony and input from the interested persons and the community.
Written testimony and input will also be accepted by email, fax, and regular mail. If the process
goes beyond the end of the year, we will extend the current PEG Access contracts to allow for
completion of this process for each PEG Access organization.