CHICAGO – What do we get in exchange for passing HB 1500 in Illinois?

Giving up local municipal negotiating rights for one statewide franchise agreement has to at least rank with the Indians selling off Manhattan for a couple trinkets and beads worth $22. It’s in the category of dumbest deals ever made.

Sheep is State Animal in Illinois

The biggest disappointment is to see all Illinois state representatives voting for HB 1500 without even asking for anything for the state in return (like a guarantee for network infrastructure to be upgraded to 1 Gbps by 2011). That would have been a fair deal and would reflect some good negotiating skills on the part of the legislature.

Even if only one representative stood up and said “we demand more in exchange for giving up municipal negotiating rights,” I would have felt better. There would have been some hope that someone “really gets it” when it comes to understanding that the state’s future partially hinges on a solid network infrastructure.

Unfortunately, they don’t get it. Does anyone even have the background to question the deal? There are no hungry wolves in the legislature who are looking to fight for their piece of meat on this table.

There aren’t even any sheep dogs protecting the rest of the flock. What about all the advisors, the Illinois Commerce Commission and staff members on the payroll? Where was their input to question the deal? No one seems to be committed to raising the bar of expectations or the speed of network services.

Wake up.

Illinois is behind the rest of the country in terms of job creation since 2001. It is also lagging behind the other Midwestern states in terms of job creation since 2001. Payroll taxes make up a good part of state funding and those salaries have been shrinking. States that people used to make fun of – like Kentucky – are now ahead of Illinois.

I remember working on a project in Kentucky some 23 years ago and other consultants saying they would never live there because it was so backward. Evidently they have caught up and exceeded our pace in developing a broadband initiative.

They understand my mantra that economic development equals broadband connectivity and broadband connectivity equals jobs. Cutting a deal to install AT&T’s Project Lightspeed (U-verse) will create 1,500 to 2,000 jobs for unions within the phone company. The unions are supportive of that.

If Illinois would have stood some ground and demanded that in exchange for a statewide franchise, AT&T would have to upgrade all facilities to provide 1 Gbps of service by 2011.

We could have seen 15,000 to 20,000 jobs for installation and implementation support teams if we raised the expectations of fiber to the premise. That does not include all the new jobs that would be created by companies locating their corporate facilities here.

Broadband connectivity is one of the top three issues for corporate site-selection committees. If you don’t have it, you won’t make the short list of new facility locations.

If you are serious about competing for new corporate facilities to locate into your area, you better have some serious broadband connectivity available. How much is enough? How much can you offer today? How competitive do you want to be?

Thought you could get a Boeing facility with 1,000 jobs to locate to your municipality with DSL or Wi-Fi? Guess again.

If you want to compete today, you better have double-digit gigabit speeds. If you can provide 10 Gbps service, I know someone who can provide 20 Gbps to corporate tenants. You can provide 40 Gbps today? Though that’s really excellent, I know someone putting in 80 Gbps service.

Don’t know what I’m talking about? Set your sights on getting a Dairy Queen or a miniature golf range and promote free Wi-Fi there. I hope you get a lot of vacation traffic through your town.

Give Credit to AT&T’s Lobbying

A lot of independent groups trying to promote municipal broadband, Wi-Fi and other Internet initiatives take on AT&T. They argue ideals like “broadband for everyone” and taking up other consumer causes.

Where is Illinois at in upgrading to fiber-optic infrastructure and investing in a competitive network infrastructure to attract and maintain economic development? While this is a huge undertaking, it has to be done if a state is to remain viable.

Just like roads and airports, network infrastructure is required. Based on the outcome of the Illinois vote, these groups failed.

Their efforts did not influence one legislator. Even though their motto is get Illinois online (GIO), they seemed to be overrun by keep Illinois on stagecoach services (KISS). That is where we are. We’re stagnated with a copper-based infrastructure.

Hopefully those in the Illinois Senate will try to negotiate something tangible for the state’s network infrastructure in exchange for granting a statewide franchise agreement.

For a universal franchise, you’d think you would get some universal coverage and a guarantee to upgrade to real broadband connectivity like 1 Gbps. No speed. No service. No franchise. Can I be any clearer?

Carlinism: When you get thrown to the wolves, you either become one or you’re eaten.

James Carlini is an adjunct professor at Northwestern University. He is also president of Carlini & Associates. Carlini can be reached at james.carlini@sbcglobal.net or 773-370-1888.
Click here for Carlini’s full biography.