Network weighs in on broadband proposal

From The State, May 27, 2009

Panel: Bring in wireless firms

By GINA SMITH

South Carolina is edging closer to bringing the next generation of broadband technology, called WiMax, to every part of the state.

But residents will have to pay for the new WiMax technology — and that has some organizations upset.

A legislatively appointed study panel issued its recommendation Tuesday on what the state should do with capacity ETV no longer needs. Federal rules are requiring ETV to convert its current analog spectrum to a digital one, freeing up 95 percent of ETV’s capacity for new wireless technology.

The panel recommended the state should lease:

• Seventy percent of the extra capacity to Washington state-based Clearwire to create a WiMax network in the urban parts of the state. An alternative to cable or DSL, WiMax is a telecommunications technology that can deliver wireless broadband across long distances. Because WiMax can transfer much more data than other technologies, it allows new uses, including interactive tools.

• The remaining 30 percent of the capacity to Virginia-based Digital Bridge Communications, a provider of wireless broadband to small and medium-sized communities. Digital Bridge would serve rural communities.

In the future, if South Carolina needs some of the leased capacity for public safety, education or governmental purposes, the state could recapture up to 25 percent of the now-unneeded capacity by renegotiating the leases.

Both Clearwire and Digital Bridge would make money from the leases by providing the WiMax technology to individuals, companies and others. In exchange, the two companies would pump nearly $143 million over the course of a 30-year lease into the state’s general fund, including $7 million upfront.

“The proposal is a great opportunity for South Carolina,” said Neil Mellen, a study committee member. “State government will enjoy much-needed revenues for basic services, such as school teachers and public safety, while the lion’s share of the spectrum will be in the hands of those most capable of successfully building it out: dedicated commercial providers. That means broader access, expanded service and lower rates for Internet access throughout South Carolina.”

But Brett Bursey, director of the S.C. Progressive Network, said he is disappointed the committee did not choose to use the excess capacity to provide free or discounted wireless service to the state’s residents.

“This is taxpayer-funded,” said Bursey, referring to taxes the state’s residents have paid to help fund ETV. “The millions of dollars South Carolinians have put into building up the broadcast system could and should have resulted in the nation’s first statewide free wireless system.”

However, telecommunications companies said it would have been unfair competition for the state to offer free wireless access.

“We welcome competition, but we don’t want anyone having an unfair advantage,” said Jerry D. Pate, director of the S.C. Telephone Association, a group of 25 telecommunications companies.

Pate said his organization is fine with the agreement but doubts it will bring Internet prices down for South Carolinians.

“This industry is highly competitive already,” Pate said, adding 410 telecommunication companies operate in South Carolina.

After a review by the Joint Bond Review Committee, the State Budget and Control Board will have the final say on the proposal in June.

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