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B R O A D B A N D I N M I S S I S S I P P I T O W A R D P O L I C I E S F O R A C C E S S E Q U I T Y

The Center for Social Inclusion 150 Broadway, Suite 303 New York, NY 10038 212.248.2785 www.centerforsocialinclusion.org

Mississippi NAACP 1072 West J.R. Lynch Street Jackson, MS 39203 601.353.6906

www.naacpms.org

January 2012

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Copyright © 2012 the Center for Social Inclusion All rights reserved. No part of this report may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without the permission of the Center for Social Inclusion. Please credit the Center for Social Inclusion, “Broadband in Mississippi: Toward Policies for Access Equity” and the Center for Social Inclusion for those sections excerpted. For any commercial reproduction, please obtain permission from the Center for Social Inclusion, 150 Broadway, Suite 303 New York, NY 10038 . Phone: +1.212.248.2785 Fax: +1.212.248.6409 Email: info@thecsi.org www.centerforsocialinclusion.org

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ACKNOWLEDGEMENTS: This report was made possible by the generous support of the Ford Foundation, the Media Democracy Fund – a special project of the Proteus Fund, and the Open Society Foundation. Special thanks go to CSI staff and MS NAACP staff for contributing to the report.

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I. Introduction No state can hope to build a 21st century economy on 19th Century technology. And no state or nation can be prosperous unless all residents can actively participate in building its economy. All Americans want access to the jobs, health services and educational opportunities that broadband, or high-speed Internet, can provide. Rural communities of all colors and predominantly African American urban and rural communities in particular tend to have less access to affordable, reliable broadband service either because it simply is not available where they live or because it is priced beyond reach. In Mississippi, the most rural state in the nation and the state with the highest percentage of African Americans, the implementation of aggressive and fair broadband infrastructure policies is critical to building a 21st century economy. This report, a follow-up to Broadband in the Mississippi Delta: A 21st Century Racial Justice Issue, a 2010 joint release of the Center for Social Inclusion and the Mississippi State Conference NAACP,1 demonstrates that:

• Mississippians as a whole must choose among older, slower and less reliable technologies than their counterparts in other parts of the country;

• Communities where people of color are the majority are underrepresented among the communities with the most provider options;

• Residential broadband service costs range from 1% to 5.4% of the median household income of African-American families in Mississippi compared to 0.5% to 3% of median household income of Whites in the state; and

• Investing in broadband in communities of color, low-income communities and rural areas is critical to creating jobs, improving educational outcomes and enhancing health services in these communities, which in turn is critical for Mississippi’s long-term growth.

Based upon these findings, we urge state administrative and legislative leaders to take the following steps in reforming state broadband infrastructure policies.

• Invest in demonstration projects that make faster, more reliable broadband technologies more widely available and affordable, particularly for communities of color in the state;

• Hold carriers supported by the newly-reformed Universal Service Fund accountable for building broadband infrastructure in the rural communities and communities of color where it is most needed;

• Establish Community Task Forces in unserved and underserved areas to help shape innovative models of infrastructure delivery and future state policies and to support sustainable adoption.

1 See CENTER FOR SOCIAL INCLUSION & MS STATE CONFERENCE NAACP, BROADBAND IN THE MISSISSIPPI DELTA: A 21ST

CENTURY RACIAL

JUSTICE ISSUE available at http://www.centerforsocialinclusion.org/publications/wp-content/plugins/publications/uploads/Broadband_in_the_Delta_-_FINAL1.pdf.

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By instituting policy reforms that are consistent with these objectives, state leaders can ensure that they lay the groundwork for a vibrant economy and healthy, thriving communities across the state. II. Broadband in Mississippi The following sections describe broadband availability and affordability in Mississippi with a particular focus on how people of color in the state are faring. They also suggest how wide-spread adoption of broadband—fueled by smart, equitable policies—could strengthen the state as a whole. A. Where is Broadband Available in Mississippi? “Availability” of broadband services refers to the existence of actual infrastructure—whether wireline or wireless—and the presence of a service provider enabling connection to the Internet. However, questions of availability do not address whether service is priced affordably, allowing all those who need and want services to access them. Similarly, the availability of a service provider does not necessarily translate into actual use or “adoption.” Still, ensuring that infrastructure and service providers are available is an important first step in providing broadband access for residents of the Magnolia state. Broadband in the Mississippi Delta: A 21st Century Racial Justice Issue, released by CSI and the MS NAACP in January of 2010, revealed that areas with greater numbers of Internet providers also tended to have more jobs and small businesses than those with fewer providers. In areas with four to seven high speed Internet providers per zip code, for example, there were 378 businesses on average. In communities with zero providers per zip code, there were a striking seven businesses on average, and where there were one to three providers, an average of 55 businesses was found.2 According to the National Broadband Map,3 just over 76.5% of Mississippi’s residents live in areas with four or more service providers. An analysis by county and race and ethnicity, however, suggests that the situation in communities where people of color predominate is worse. Of the top ten counties in the state with access to more than four providers, only one—Hinds County—has a population of color that is greater than 50%. Warren County comes close with a people of color population of 48.8% but falls just short of the threshold.

2 See id. at 4. 3 This report draws upon a range of studies, but relies heavily on data from the National Broadband Map .developed by the FCC with American Recovery and Reinvestment Act dollars. Many, including experts at the New America Foundation, have rightly challenged the Map, noting that it is based on self-reported data submitted by providers, fails to distinguish between business and residential services and does not answer critically important questions relating to cost and actual speeds. See Benjamin Lennett & Sascha Meinrath, “Map to Nowhere,” Slate Magazine (May 18, 2011) available at http://www.slate.com/id/2294814/. Though we acknowledge these shortcomings, we nonetheless rely on the NBM because it represents the best currently available source of information on the questions we seek to answer here. We nonetheless hope that in the future we will be able to draw upon richer and more reliable data.

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Table 1: Top 10 Counties by Percent of Population with access to >4 Internet Service Providers

Rank County Percent with >

4Providers White Black Latino(a)

1 Harrison 99.7 67.2 22.1 5.3

2 DeSoto 99.6 70.4 21.9 5.0

3 Rankin 98.5 76.3 18.8 2.7

4 Hinds 98.1 28.0 63.8 1.5

5 Madison 98.1 56.0 38.2 2.9

6 Forrest 98.0 58.4 36.1 3.5

7 Jackson 96.0 69.9 21.5 4.6

8 Lauderdale 95.5 54.0 42.8 1.8

9 Hancock 93.0 86.3 7.0 3.3

10 Warren 92.9 49.5 47.0 1.8. Source: 2011 National Broadband Map – www.broadbandmap.gov; U.S. Census. [*Bold rows indicate majority Black/African-American counties or indicate majority person of color counties with a combination of African-American and Latino(a) residents.]

Overall, Mississippi ranks 41st among all the states and territories in availability of broadband technology.4 When data is broken down by service type, allowing for distinction between wireline and wireless services, the extent to which the state lags behind others becomes even more evident. Table 2: Percent with Access to Broadband Technologies in Mississippi vs. Nationwide

Technology Percent with Access in Mississippi Percent with Access Nationwide

DSL 83.6 88.0

Fiber 13.4 15.0

Cable 60.8 85.2

Wireless 96.7 97.6

Source: National Broadband Map—www.broadbandmap.gov. Mississippi falls below the national average in terms of access to wireline broadband technologies. While 15% of Americans have access to high-speed Internet by way of fiber optic connections, only 13.4% of Mississippians are similarly situated. Nationwide, 85.2% of Americans have access to cable broadband, but only 60.8% of Mississippians have such access. National Broadband Map data indicates that Digital Subscriber Line (“DSL”) technology is available to 83.6% of Mississippi residents, making it

4 See National Broadband Map, “Analyze>>Rank” available at http://www.broadbandmap.gov/rank/all/state/percent-population/within-nation/technology-all/ascending/.

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the most widely available wireline broadband technology in the state.5 Even so, Mississippi ranks 41st

among all states and US territories in access to this technology.6 Notably, DSL lines are significantly older and slower than next generation cable and cutting-edge fiber connections. Thus, when compared to their counterparts nationwide, Mississippi residents who wish to secure wireline Internet services are more likely to have to choose among older, slower technologies. Where wireless technologies are concerned, Mississippi approaches the national average, but nonetheless ranks 39th among the states and territories.7 According to the National Broadband Map, 96.7% of Mississippi residents live in areas where mobile wireless service is an option.8 Mobile wireless availability far outstrips that of fiber, cable and even DSL. However, mobile wireless networks are generally considered to be less reliable than wired networks.9 These numbers suggest that for the vast majority of Mississippi residents, relatively unreliable networks represent the most readily available option for accessing Internet service. B. How Affordable is Broadband in Mississippi? While availability data identifies where infrastructure exists, information about pricing and affordability is absolutely critical to understanding whether would-be consumers can actually secure services. After all, residents can only use broadband if they have the financial resources needed to pay a provider. It is impossible to understand rates of adoption, or use, or to formulate strategies for increasing them without accounting for affordability. According to the U.S. Census Bureau, 32.1% of Mississippi residents report not using the Internet because it is too expensive.10. However, in order to achieve a more complete understanding of why this is, which Mississippians are most affected and how state and federal policies must shift in response, it is essential to examine affordability by race. The tables below list major service providers in Mississippi and provide information about the cost of their residential services. According to these figures, residential broadband services in the state range from as little as $239.40 over the course of a year for DSL service, to $1,319.88 per year for a satellite connection. These costs are significant in a state with a

5 See National Broadband Map, “Analyze >> Summarize Mississippi” available at http://www.broadbandmap.gov/summarize/state/mississippi 6 See National Broadband Map, “Analyze>> Rank” available at http://www.broadbandmap.gov/rank/all/state/percent-population/within-nation/technology-wireline-dsl/ascending/. 7 See National Broadband Map,” Analyze>> Rank” available at http://www.broadbandmap.gov/rank/all/state/percent-population/within-nation/technology-wireless-any/ascending/. 8 See National Broadband Map, “Analyze >> Rank” available at http://www.broadbandmap.gov/rank/all/state/percent-population/within-nation/technology-wireless-terrestrial-mobile-licensed/ascending/. In contrast, only 2.6% of the Mississippi population is covered by terrestrial fixed wireless. See National Broadband Map, “Analyze >> Rank” available at http://www.broadbandmap.gov/rank/all/state/percent-population/within-nation/technology-wireless-terrestrial-fixed/ascending/. 9 See, e.g., MuniNetworks.org, “Wireless” available at http://www.muninetworks.org/content/wireless; PC World, “Answerline,3G vs. Terrestrial Broadband” available at http://www.pcworld.com/article/185666/3g_vs_terrestrial_broadband.html. 10 See Figure 3 citing U.S. Census Bureau.

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median household income of $36,851—26% less than the national median household income. However, the median household income of African Americans in the state is a striking $24,52511—54% of that of Whites in the state and only slightly higher than the federal poverty level for a family of four. Under these constraints, high-priced telecommunications services can place significant pressure on family budgets. In order to secure broadband services, the average African-American family in Mississippi would have to spend between 1% and 5.4% of their incomes annually. Steps must be taken to increase the affordability of these now essential services so that Mississippians of color can reap the many benefits they provide. Table 3: Broadband Service Providers and Pricing in Mississippi - Residential Use

Source: MS NAACP survey of broadband service costs in Mississippi. **Kilobits per second (Kbps), Megabits per second (Mbps)

C. Advancing Adoption for Mississippi’s Future The accessibility of broadband infrastructure and the affordability of connections matter most of all because they are key barriers to “adoption”—the extent to which people actually use Internet service. When race is accounted for, it becomes clear that African Americans continue to be less likely to have broadband in the home. While 66% of American adults now have broadband at home, just 56% of African Americans do.12 African-Americans and Latinos are more likely than whites to report that lack of broadband was a major disadvantage with respect to accessing employment opportunities, getting information on health, connecting to government services, staying abreast of news, keeping up with developments in the local community and acquiring new knowledge.13 Home access to Internet is also

11 U.S. Census Bureau, American Community Survey 2010, 1-year Estimates. 12 AARON SMITH, PEW INTERNET & AMERICAN LIFE PROJECT, HOME BROADBAND 2010, 2 (2010) available at http://www.pewinternet.org/~/media//Files/Reports/2010/Home%20broadband%202010.pdf. 12 See id. at 15

Broadband Service in Mississippi*

Residential

Providers AT&T Verizon Comcast Cellular South

HughesNet

Cost 19.95 – 42.95

29.95 – 54.95

41.95 – 61.95

39.99 – 59.99

59.99 – 109.99

Type DSL DSL/WiFi Cable Wireless Satellite

Speed (DS)** 768 Kbps - 6 Mbps

768 Kbps - 15 Mbps

1.5 Mbps -20Mbps

600 Kbps - 1.4 Mbps

1 Mbps - 2 Mbps

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limited in geographically isolated areas, with only 50% of those living in rural communities having broadband in the home.14

Figure 3: Reasons Why Residents Do Not Use the Internet

Source: U.S. Census Bureau, Current Population Survey (CPS) 2010

While racially disaggregated data is not available, there is evidence of formidable barriers to broadband adoption in Mississippi. As Figure 3 illustrates, nearly 6% of Mississippi residents, said that they did not use the Internet because it was unavailable, compared to only 2.2% of those in the South as a whole and 1.7% of respondents nationwide. To date, infrastructure for high-speed Internet has been concentrated in three areas of the state: the Jackson Metro area, the northeast corridor and along the Gulf Coast. This, however, has translated into limited access to infrastructure elsewhere and set the stage for low adoption rates in the majority African-American communities of the Delta region, low-income areas and rural areas. As Broadband in the Mississippi Delta: A 21st Century Racial Justice Issue illustrates, the lack of high-speed Internet options often goes hand in hand with limited business development and lack of jobs. Even where infrastructure is in place and service is technically available, cost—as noted above—can impose powerful limitations on the ability of families to afford Internet in their homes.

14 See id. at 14-15

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1. Broadband and Jobs Making high-speed Internet accessible and affordable for all Mississippi residents—including the communities of color, low-income communities and rural areas that most need investment—is a critical step toward positioning Mississippi in the global marketplace. If deployed with the specific aim of strengthening communities, broadband has the potential to increase jobs, fuel economic development and boost the quality of health services in a state where such developments are much needed. Recent analysis of U.S. Census data completed by the Mississippi Economic Policy Center highlights the need for a renewed commitment to transformation in the state.

• The poverty rate in Mississippi rose from 15.6% at the start of the decade to 22.9% in 2009/2010. Mississippi was the only state with a poverty rate above 20% at the end of the decade and experienced the second largest increase in poverty—7.3 percentage points—over that period of time.

• Incomes also declined substantially. Adjusting for inflation, median incomes declined by over

$6,000, from $42,963 in 1999/2000 to $36,821 at the end of the decade. While communities throughout the state have been suffering economically, African American communities have been disproportionately impacted by high rates of unemployment. The most recent “Labor Market Report” released by the Mississippi Department of Employment Security reveals that the counties with the highest rates of unemployment are predominantly African American. Those counties in Mississippi with the lowest rates of unemployment are predominantly White. Table 4: Mississippi Counties with Highest Unemployment Rates County Percent

Unemployment Rate15

Percent African American16

Percent White

1. Clay 19.1 58.2 40.5 2. Holmes 17.1 83.4 15.6 3. Jefferson 16.9 85.7 13.7 4. Claiborne 16.3 84.4 14.2 5. Noxubee 16.1 71.6 27.1

Sources: MS Department of Employment Security, U.S. Census Bureau 15 See id. at 8. 15 Mississippi Department of Employment Security, “Labor Market Data,” October 2011. available at www.mdes.ms.gov 16 U.S. Census Bureau: State and County QuickFacts.

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Table 5: Mississippi Counties with the Lowest Unemployment Rates

Sources: MS Department of Employment Security, U.S. Census Bureau An investment in broadband for all Mississippi residents could help to address these and other inequalities. Broadband infrastructure can enable existing businesses to expand and attract new enterprises, creating additional employment opportunities. Experts estimate that for every one percentage point increase in broadband penetration in a given state, employment increases by 0.2. to 0.3 percent per year.19 They have identified a strong link between broadband and employment in the education and health care sectors in particular in addition to a relationship between broadband penetration and employment increases in the manufacturing sector.20 The lesson for state leaders who are interested in job creation is simple: increase broadband penetration by investing in state-of-the-art broadband infrastructure in those parts of the state with the least access to high-speed Internet and the greatest need for jobs and economic development. 2. Broadband and Education Mississippi desperately needs the jobs that investment in broadband can provide. However, to guarantee long-term economic growth, the state must also improve educational outcomes. Currently, average Mississippi student scores on the 4th and 8th grade math, reading, science and writing portions of the National Assessment of Educational Progress fall below national averages.21 In addition, low high school graduation rates continue to plague the state. While many dedicated Mississippi activists are working to improve education, African-American children continue to experience worse educational outcomes and lower graduation rates than white children. According to data released by the Mississippi Department of Education, each of the five high schools with the lowest graduation rates in the state is a school in which African Americans constitute the overwhelming majority of students. 22

17 See Mississippi Department of Employment Security, Labor Market Data October 2011. available at www.mdes.ms.gov 18 U.S. Census Bureau: State and County QuickFacts 19 See ROBERT CRANDALL ET AL, THE BROOKINGS INSTITUTION, THE EFFECTS OF BROADBAND DEPLOYMENT ON OUTPUT AND EMPLOYMENT: A

CROSS-SECTIONAL ANALYSIS OF U.S. DATA 2 (2007) available at http://www.brookings.edu/views/papers/crandall/200706litan.pdf. 20 See id. at 12. 21 See National Assessment of Educational Progress, “State Profiles—Mississippi” available at http://nces.ed.gov/nationsreportcard/states/. 22 See Mississippi Department of Education, Dropout/Graduation Rate Information available at http://www.mde.k12.ms.us/dropout_prevention/rate_information_2.html; Mississippi Assessment Accountability and Recording System available at http://orsap.mde.k12.ms.us/MAARS/maarsMS_TestResultsProcessor.jsp?userSessionId=36&EmbargoAccess=0&DistrictId=2037&TestPanel=1&BrowserType=2

County Percent Unemployment Rate17

Percent African American18

Percent White

1. Rankin 6.6 18.8 77.8 2. Madison 7.2 39.2 57.0 3. DeSoto 7.3 21.9 72.2 4. Lamar 7.8 19.6 77.3 5. Lafayette 8.1 23.7 71.8

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These patterns are simply unsustainable. In a state where nearly 40% of residents are African American, a failure to provide an excellent education for students of color is tantamount to abdicating responsibility for the state’s future. Investing in networks that bring high-speed Internet to public schools and homes in communities like many in the Delta via state-of-the-art technologies is critical to reversing these trends. As the FCC noted in its National Broadband Plan, “the demands of the new information-based economy require substantial changes to the existing [education] system.”23 Bringing affordable, high-speed Internet to homes in communities of color, low-income communities and rural areas can facilitate these changes by dramatically expanding the universe of educational materials available to teachers, increasing student access to research tools and other resources and making information on student performance more easily available to parents.24 All of this suggests that preparing the next generation of Mississippians for financial success and civic leadership requires state policies that are designed to make broadband truly universal. Table 6: Mississippi High Schools with the Lowest Graduation Rates by Race School Graduation

Rate Percent African American

Percent White

1. Okolona High School 46.1 99 1 2. Durant Public School 46.8 98 1 3. Natchez High School 47 94 6 4. West Tallahatchie

High School 48.1 100 0

5. Rosa Fort High School

50.2 99 0

Source: Mississippi Department of Education 3. Broadband and Health In addition to fueling job creation and better educational opportunities, expanding access to affordable broadband could support better health outcomes in Mississippi. With 18% of its population uninsured and many residents living in isolated communities with limited access to providers and health institutions, access to care is a major problem. It is not surprising then that examination of the Magnolia State’s performance with respect to major health status indicators including infant mortality, teen deaths, AIDS diagnosis and child and adult obesity yields alarming results. In 2011, the Trust for America’s Health ranked Mississippi as the most obese state in the union with 34.4% of adults and 21.9% children at dangerously unhealthy weights.25 In addition, rates of hypertension and diabetes in Mississippi are also some of the highest in the nation.26

23 FEDERAL COMMUNICATIONS COMMISSION, NATIONAL BROADBAND PLAN 243 (2010) available at http://download.broadband.gov/plan/national-broadband-plan-chapter-11-education.pdf. 24 See id. 244. 25 TRUST FOR AMERICA’S HEALTH, F AS IN FAT: HOW OBESITY THREATENS AMERICA’S FUTURE 2011 22, 31 (2011) available at http://healthyamericans.org/assets/files/TFAH2011FasInFat10.pdf. 26 Trust for America’s Health, “Key Health Data About Mississippi” available at http://healthyamericans.org/states/?stateid=MS.

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By analyzing health disparities—gaps in the quality of health and health care across racial, ethnic, sexual orientation and socioeconomic groups—one gets a more nuanced view of where needs are greatest. In Mississippi, the health outcomes among African Americans are consistently worse than those for white residents. Table 7: Key Health Outcomes in Mississippi by Race Health Outcome Black White Hypertension Mortality Rates 28.5 10.2 Diabetes Mellitus Mortality Rates

54.9 19.6

Stroke Mortality Rates 60.2 41.2 HIV/AIDS Mortality Rates 13.2 1.5 Female Breast Cancer Mortality Rates

36.2 18.9

Prostate Cancer Mortality Rates

59 18.5

Heart Disease Mortality Rates

289.3 227.2

Infant Mortality Rates 13.6 7 Source: The Mississippi Statistically Automated Health Resource System (MSTAHRS): http://mstahrs.msdh.ms.gov/ Broadband can help to eliminate these disparities by providing more and better health care resources for African Americans in the state. Broadband allows for the maintenance of and access to electronic health records, allowing physicians to better track patients’ health status. Switching from paper to electronic health records will yield tremendous benefits. Outcomes include reduced health care costs, enhanced quality of care, promotion of evidence-based medicine and better record keeping. Internet-based technologies can also open up new treatment opportunities for residents of geographically isolated areas who lack health centers in their own communities and transportation to access others. Through telemedicine, such individuals can consult with doctors located at distant facilities. With implementation of the Affordable Care Act (“ACA”) the importance of expanding access to affordable broadband for all Mississippians will only increase. The need for better quality health care in the state is great, and some estimate that the Act could expand insurance coverage for 315,000 residents and extend it to an estimated 95,000 uninsured residents and 16,500 residents with preexisting conditions in the 2nd Congressional District alone.27 The U.S. Department of Health and Human Services has developed a plan for the creation of health insurance exchanges as part of Congress’ overhaul of the nation’s health care system.28 However, these exchanges can only be fully

27 See Office of Congressman Bennie Thompson, “Health Care” available at http://benniethompson.house.gov/index.php?option=com_content&view=article&id=92&Itemid=144. 28 See U.S. Department of Health and Human Services, “HHS, Treasury take new steps to help states build Affordable Insurance Exchanges” (Aug. 12, 2011) available at http://www.hhs.gov/news/press/2011pres/08/20110812a.html.

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successful if states like Mississippi meet the fundamental need for broadband in the communities of color, low-income communities and rural areas where health coverage and care options are most limited. III. Policy Recommendations All Mississippians can have high-speed, high quality Internet service. To get there, Mississippi should lead the nation in innovative approaches that foster broadband infrastructure deployment and affordability for consumers. Planning and implementation strategies to promote broadband accessibility and affordability in Mississippi must address specific opportunities and challenges in rural areas and communities of color in both rural and urban areas. A. Mississippi leaders should invest in demonstration projects that make faster, more reliable broadband technologies more widely available and affordable, particularly for communities of color. As this report shows, Mississippians lag behind their counterparts nationwide in terms of availability of the newer, faster and more reliable broadband technologies that are poised to drive economic development in the decades to come. Predominantly African-American communities have the fewest broadband providers as well as fewer jobs and employers. To remedy this, Mississippi state legislators should invest in a program of demonstration projects in unserved and underserved parts of the state. Importantly, these funds must seed investment in cutting-edge fiber-to-the-home technologies, though development of a statewide network is likely to take some time. To expand and improve the quality of available services in the short term, state officials should, at a minimum, invest in projects that deploy mobile Worldwide Interoperability for Microwave Access (“WiMAX”) technologies, which are improving both the speed and range capacity of mobile wireless systems.29 Demonstration projects should target communities that meet key criteria, such as those below:

• The average number of high-speed Internet providers in the zip codes in question is two or less; • The population of people of color in the counties in question is 50% or greater; or • The percentage of families below the poverty level in the counties in question is 20% or greater

Such criteria should govern the distribution of funds for demonstration projects and ultimately be enshrined in state infrastructure development policies. This program must also create opportunities for non-traditional providers of broadband infrastructure who are more likely to address the needs of currently unserved and underserved communities. Many geographically isolated communities, like those in Mississippi’s Delta counties, find it difficult to get

29 Dietze, Kai et al. “WiMAX System Performance Studies” retrieved 19 May 2011. [http://www.edx.com/files/WiMaxPaperv1.pdf]

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incumbent telecommunications companies to deploy high-quality, high-speed, affordable Internet services to their areas. This is because, according to these companies’ cost-benefit models, the costs of building networks are not justified by expected profits. Traditional responses, such as regulatory and tax incentives to make these areas more attractive to major telecommunications companies tend to weaken the intended social benefits of expanding network infrastructure in these areas. And many networks based on these incentives never reach their intended deployment goals or fail to become self-sustaining. There is an alternative: communities can work together in partnership with the state to build their own networks, whether owned by local cooperatives, municipalities or small business owners who have a stake in the community. Access via such networks must also be affordable, and operators must be accountable to those who utilize the services. Importantly, community-scale networks must allow residents to make creative choices about how broadband infrastructure can best serve the community’s social and economic development needs. Such networks have tremendous potential. As the Institute for Local Self Reliance has documented in its 2011 report, Publicly Owned Broadband Networks: Averting the Looming Broadband Monopoly, over three million Americans have access to high-speed Internet through publicly-owned networks alone. As a result, these communities have saved millions of dollars, gained access to the Internet through some of the most powerful networks across the country and motivated incumbents to improve services because of increased competition.30 Finally, to ensure that services are affordable to those who most need them, the state should either subsidize consumer costs or require those carrying out these projects to limit such costs to 0.5% of the median household income for African Americans in the state. B. Mississippi should hold recipients of support under the newly-created Connect America Fund accountable for building broadband infrastructure in the rural communities and communities of color where it is most needed Bridging the digital divide that plagues Mississippi will require much more than the American Recovery and Reinvestment Act’s one-time federal funding infusion. The Federal Communications Commission is currently considering reforms to the Universal Service Fund (“USF”), which is financed through fees paid by telephone customers. To date, USF resources have been distributed through a range of programs. The High-Cost program provides funding to what are sometimes called “market failure” areas—places where traditional telecommunications firms will not build because costs cannot be justified under their models. The Lifeline and Link Up programs are designed to help low-income Americans afford service subscriptions and connection fees respectively, while the Rural Health Care and E-Rate programs set aside smaller amounts for rural health centers, schools, and libraries.

30 See CHRISTOPHER MITCHELL, INSTITUTE FOR LOCAL SELF RELIANCE, PUBLICLY OWNED BROADBAND NETWORKS: AVERTING THE LOOMING

BROADBAND MONOPOLY,1 (2011) available at http://www.newrules.org/information/publications/publicly-owned-broadband-networks-averting-looming-broadband-monopoly..

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To date, USF programs have focused on expansion of telephone services. However, contemplated reforms to the High-Cost and Lifeline and Link Up programs would direct resources toward broadband infrastructure and service costs as well. The FCC is in the process of transforming the High-Cost program into a new Connect America Fund (“CAF”) designed to expand fixed and mobile broadband build-out in unserved areas.31 Under the new plan states will continue to make critical decisions about eligibility for funds, carrier

accountability for build-out and consumer protections. As noted in Broadband in the Mississippi Delta: A

21st Century Racial Justice Issue, there is evidence that where large telecommunications firms are not

held accountable for building infrastructure to rural, low-income communities of color, they will fail to

do so, leaving such areas with limited access to high-speed Internet and the economic benefits such

access can provide. In order to guarantee that communities of color and low-income communities of all

colors across the state benefit from these much-needed investments, the State of Mississippi must take

a series of steps:

• The Mississippi Public Service Commission must allow innovative, community-scale broadband

networks that meet the requirements of the Telecommunications Act of 1996 to qualify as

eligible communications carriers (“ETCs”) so that they may access universal service dollars. As

numerous examples from across the nation demonstrate community networks have been able

to bring high-speed service via cutting-edge technologies to communities overlooked by large

operators.

• The Mississippi State University Extension Service, as part of its planned follow up to research

conducted in 2011, should complete an assessment of broadband availability by race, analyzing

the number of broadband providers, the technology utilized and extent of home adoption in

census blocks where the percentage of people of color is equal to or greater than the Mississippi

state average. This baseline assessment should also include analysis of availability, technology

and home adoption in census blocks where the percentage of residents at or below the federal

poverty level is greater than or equal to the state average. State officials should consider this

data when identifying priority areas for investment and this data should be collected and made

available to the public annually in readily analyzable formats such as xml and csv.

• The Mississippi Public Service Commission must track the actual prices of broadband Internet

service provided by carriers supported by the Connect America Fund and annually compare

31 Federal Communications Commission, Notice of Proposed Rulemaking and Further Notice of Proposed Rulemaking, FCC 11-13, 9-10 (Feb. 8, 2011).

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these figures to race and income data collected as part of the

baseline assessment. This will enable Mississippi state officials to

identify where affordability challenges may arise for the most

vulnerable consumers and what steps will be necessary to keep

costs within control.

• State administrative and legislative leaders must partner

to create opportunities for consumers—and those who would like

to be consumers of broadband—to shape state policy related to

broadband expansion. This should include the creation of

Community Task Forces (see below) required to sign off on all

plans for use of CAF dollars, regular consultation of consumers as

the state develops plans and eligibility requirements, and

verification of carrier claims about availability, speed and pricing

through periodic consultation with consumers.

By taking these steps, Mississippi can ensure that investments

help to catalyze improved economic, health and educational

outcomes in communities of color and low-income and rural

areas of all colors.

D. Establish Community Task Forces in unserved and

underserved communities to help shape future state policies

and support sustainable adoption.

With leadership and resources from the Office of the Governor

and the state legislature, Task Forces—including elected officials,

community leaders, residents, and other stakeholders—must be

established in unserved and underserved areas, creating an

infrastructure for improved planning, implementation and

oversight of state-supported broadband projects on an on-going

basis moving forward. Each Community Task Force should

develop an area strategic plan that assesses broadband

Mount Bayou, MS:

Blazing Trails in the Mississippi Delta

A standout example of a community taking the lead on

broadband development is Mound Bayou, located in the

Mississippi Delta. Prior to the tenure of Mayor Kennedy

Johnson, the town’s City Hall relied solely on dial-up

internet services. As the owner of a business requiring

high-speed Internet, Mayor Johnson recognized that, in

order to meet the needs of its citizens and thrive in an

increasingly competitive economic environment, the

community of 2,000 needed broadband access. Mayor

Johnson oversaw the installation of fiber optics to

provide the community access to broadband.

Since then, the community has benefited tremendously

from broadband infrastructure development.

Broadband has made it easier and more convenient for

residents to communicate with those near and far.

Teachers and students now have access to information

and research tools to enrich their work. Importantly, in

these challenging economic times, broadband has

allowed residents to find employment through Internet-

based jobs.

Although Mount Bayou has enjoyed some benefits of

broadband access, there is still more work to be done.

Mayor Johnson believes there is a need for training and

outreach in order to educate citizens about the impact

broadband can have in their community as well as

measures to reduce the cost of broadband access,

making it affordable for low-income families. Mayor

Johnson looks forward to leveraging high-speed

Internet to make his community even stronger in years

to come.

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infrastructure as well as service and training needs. In developing these plans, each Task Force must

draw on existing or emerging economic and community development initiatives. Elected officials who

sit on these Task Forces should then convene to develop a state-wide strategic plan as an amendment

to any existing, statewide broadband development proposals. These strategic plans, which will be

grounded in the needs of unserved and underserved communities, must then form the basis for future

legislative efforts relating to broadband.

Such a structure would produce a number of benefits. Among them would be improved access for

residents of unserved and underserved communities, who would be able to leverage relationships with

task force members (most significantly legislative members) in order to communicate local challenges

and seek investment in projects. In addition, local Task Force members would gain and be able to share

valuable knowledge about broadband services and providers available, the benefits of high-speed

Internet and potential resources for expansion.

State leaders must take the following steps immediately in order to lay the groundwork for these Task

Forces.

• Make resources available to fund initial needs assessments in unserved and underserved

communities and to support the capacity of local Task Forces; and

• Provide trainings for communities on the benefits of broadband adoption for economic health

and well-being, alternative technologies and models for broadband deployment, including

community-scale infrastructure.

Once the state has taken these initial steps, local leaders in unserved communities should take the

following actions.

• Identify potential Task Force members among local elected, community and faith-based

leaders;

• Conduct community needs assessment that pulls together information on service availability,

cost, current providers and infrastructure challenges;

• Develop goals and objectives for Task Forces based on community needs;

• Develop strategic plans based on identified goals and objectives; and

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• Convene local residents to introduce Task Force goals and structure and gather feedback on

residents’ needs.

Mississippi’s ability to thrive in the 21st century will turn on its ability to ensure that all residents—

particularly the people of color, low-income households and residents of rural communities that today

lack high-speed Internet—are able to tap the many benefits of broadband. To do so, state officials

should commit themselves to expanding availability, improving affordability and supporting

sustainable adoption in the communities that are currently most burdened by the digital divide. By

doing so, the state can unleash potential that is currently untapped and fuel a thriving 21st century

economy.

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APPENDIX What Is Broadband? Broadband is high-speed Internet access that is always “on” and available to network customers. Broadband provides greater bandwidth—meaning the rate at which data is transmitted on the Internet—than dial-up services. As a result, broadband users are able to download data from the web at faster speeds. The FCC’s National Broadband sets 4.0 megabits per second (mbps) as a minimum connection speed for broadband. Broadband is typically provided to users through a number of methods including digital subscriber lines (DSL), wireless, cable modem, satellite, fiber lines and broadband over power lines (BPL).

DSL is the digital transmission of data over wire lines that does not interrupt voice (telephone)

service and offers a broad bandwidth range. A wireless connection is an Internet connection, whether fixed or mobile, which allows for the

transmission of data through radio link or cellular towers. Cable modem service allows for the transmission of data via existing cable lines that have been

traditionally used to provide cable television to residential customers. Satellite service allows for the transmission of data through orbiting satellites and is generally

used to provide service to customers in rural or under-developed areas. However, such service is generally provided at significantly smaller bandwidths and is more expensive than other forms of broadband service.

Fiber optic technology allows for the data transmission through the conversion of electrical

signals via light and transparent glass fibers and offers bandwidths that far exceed other currently available technologies.

BPL technology uses the existing infrastructure of the power distribution network, allowing for

the transmission of data through low and medium voltage electric power lines. This technology is still emerging, and is only offered in limited areas. It is not currently available in Mississippi.

Currently, the majority of the broadband service in Mississippi is provided through DSL, Cable and mobile wireless technologies.