Hudson Lays Out Details for Its Municipal Gigabit Network

Hudson, Ohio's upcoming municipal network, Velocity Broadband, may be serving commercial customers as early as September, reports the Hudson Hub Times. At a July 22nd Rotary Club meeting, Assistant City Manager Frank Comeriato presented details on the plan. The city has no plans to serve residents but once business services are in place, they may consider a residential build out.

The gigabit network, to be owned and operated by the city of Hudson, will be deployed incrementally. Incumbents Time Warner Cable and Windstream serve local businesses but a majority complain of unreliable connections and unaffordable prices in the few places where fiber is available.

Earlier this year, the city conducted a survey and businesses responded:

"They wanted better service and speed," [Comeriato] said. "After only two vendors responded to the city to offer the service, the city decided it could offer the service like it offers public power, water and other infrastructure."

Hudson officials realize that it connectivity is an essential service for economic development and that businesses have no qualms with relocating to places where they can get the bandwidth they need:

"Economic development is 80 percent retention, and Hudson businesses are unhappy with their current service, he added. "They want something like this."

Hudson Public Power has been preparing by training crews to deploy the infrastructure. Like other communities that have recently decided to invest in municipal networks, Hudson will focus only on Internet access and voice.

Earlier this year, the City Council approved the initial $800,000 capital expenditure to begin the deployment. According to Hudson Communications Manager Jody Roberts, the city expects to spend another $1.5 million in 2016 on infrastructure before they light the network, scheduled for 2016.

"We will then determine any additional amounts needed in [future] years, since by then we will be bringing in money in the form of monthly fees from customers," Robert said of anticipated costs. "It is our goal for this service to become fully self-sustaining. And, we anticipate by offering this service, we will attract more businesses to Hudson (more income tax) and retain more businesses."

Local public relations firm AKHIA will be one of the beta testers as the network progresses. They upload and download large data files on a daily basis and their current 5 Mbps connection is inadequate. Ohio.com reported:

“Our [current] Internet is constantly going down,” [Jan Gusich, part-owner and chief executive officer] said. When that happens, her staff leaves to find other places with available Internet, such as coffee shops, she said.

Hudson is home to approximately 23,000 people and located in the northeast corner of the state. In 2014 they released an RFP for a Broadband Needs Assessment and Business Plan; the survey was part of that assessment.

After consultants reviewed the city's assets and developed an option that incorporated its I-Net, their February 2015 estimate came to approximately $4.9 million for infrastructure to four commercial areas of town for an open access model. At the time, the consultants suggested that the price would increase to $6.5 million if the city chose to take on the role as retail provider.

Want a Gig? Ask Consultants the Right Questions

For years, we have been frustrated at the tendency of communities and consultants to view municipal fiber networks as a binary decision. Should we or shouldn't we? Should they or shouldn't they? At its worst, it is framed with the most expensive approach - borrowing for a citywide all-at-once approach.

Consider this framing by a recent story in a Portland, Oregon suburb from the Oregonian:

Hillsboro officials have heard back from the consultant they hired to examine the feasibility of building a municipal fiber network that would bring high-speed, lower-cost Internet service to city residents.

The answer? Don't do it.

Stories like this make my blood boil. It is the absolute wrong question. But to delve into it, I want to abstract away from any specific consultants or approaches. This is not a failing of a single consultant, but something we have seen to various degrees from many.

Jumping ahead, the correct approach is to develop a description of the problems a community faces or wants to solve relating to Internet access. Then, examine a variety of approaches to pick the best option rather than only evaluating the single most expensive option.

Some consultants are very happy to bid a project, answer a narrow question, and then let the community go on its perhaps puzzled way. They have the list of phone poll questions, the spreadsheet full of assumptions, and final feasibility report template all ready for the next community. (We do not offer consulting services.)

Other consultants go out of their way to educate, guide, and otherwise help the community develop and achieve its objectives. These consultants may appear to cost a bit more, but actually can be much more cost effective. Some consultants bid the bare minimum, planning to charge extra later for supposedly supplemental information that is actually essential for continuing the process.

A consultant should be a guide to achieving objectives rather than simply evaluating a single, likely over-simplified question. It all starts with what questions a community asks. After doing some initial research (possibly perusing our Community Connectivity Toolkit), community leaders may be tempted to ask a consultant whether they should build a citywide municipal fiber network.

This is not recommended. Instead, we recommend developing a vision (discussed in our Santa Monica City Net case study).

What is the primary problem that needs to be solved? Hint: It isn't "how do we get a gig??" Be more specific. Common problems include poor business service availability that discourages economic development opportunities, slow connectivity, high prices (for residents or businesses or both), poor reliability, lack of access for historically marginalized populations etc.

Identifying specific problems is important because the preferred solutions for encouraging economic development will be different from those focusing on connecting low-income neighborhoods.

Having established the problems, the vision needs a sense of the opportunities from policy options. Here it is important to remember that the same technology deployed by different entities will create different opportunities. If Chattanooga had decided to beg Verizon for FiOS rather than building their own network, they wouldn't have created thousands of jobs and wouldn't have one of the best networks in the nation today. But both FiOS and Chattanooga's fiber network are technically similar. A FTTH network owned by a massive telco can have dramatically different outcomes than a FTTH network owned by a community. The tradeoff is the responsibility of running the system, likely over decades.

After establishing the problems and opportunities, the consultant should be charged with recommending paths to achieve the vision. "No" is not acceptable answer. An acceptable answer is an analysis that explains how the community can trade off cost, time, risks, and benefits. That is to say a community may decide to take greater risks in anticipation of greater benefits by borrowing significantly to rapidly build a citywide network. Or a community may decide to minimize risk with incremental investments over many years to expand conduit and fiber in the first phases of a long term plan. There are many permutations.

In the year 2015, municipal fiber is not a yes/no question. The models are many and varied - the best question is what does the community need and how motivated it is to take meaningful action.

Had Hillsboro taken this path, they would have a variety of options to discuss to solve the problems with connectivity that were demonstrated by the study. But instead, they have a document that only examined high risk, high cost approaches and found the recommended project to be "marginally viable."

If I were an elected official there, I would be examining what low cost incremental strategies could improve access to the Internet locally.

As a final thought, this is not just a problem with consultants. There are definitely elected officials who are privately happy to hear that a project is not feasible because it gives them cover to take no action. If they were already hesitant to upset power cable and telephone companies, they then have a document that "proves" the costs are too great to take any action.

Fiber or Fireplace? Study Links FTTH to Increased Housing Prices

Only one in 11 households in the United States have fiber-to-the-home (FTTH) subscriptions, according to a 2014 Broadband Communities primer, but that might begin to change as more and more studies show the economic benefits of fiber. Most recently, the Fiber To The Home Council Americas funded a study in conjunction with the University of Colorado and Carnegie Mellon that showed a fiber dividend of $5,437 on a $175,000 home. Fierce Telecom reported on the results:

The boost to the value of a typical home – $5,437 – is roughly equivalent to adding a fireplace, half of a bathroom or a quarter of a swimming pool to the home.

The results of the study, which compared roughly 500,000 housing prices over the course of two years, have made their rounds on the Internet, even receiving coverage in the Wall Street Journal. It builds upon a small, but growing, body of research that links fiber deployments in homes and multiple dwelling units (MDUs) to economic growth.

As more research on housing prices and home Internet access surfaces, the value of FTTH deployments appears to be on the rise. A 2014 study by the consulting firm RVA LLC revealed a $5,250 increase in the value of a $300,000 home. Now, according to the newest study, a similar increase in value can be seen in homes worth half this amount.

The benefits of FTTH networks are not just relegated to single family homes. In 2014, the FTTH Council released a report that showed a 1.1 percent increase in GDP in communities that deploy gigabit broadband services, representing about $1.4 billion in total in the 14 gigabit communities studied.

The Council also conducted a survey in 2014 that looked at the effect of FTTH on multiple dwelling units, which we covered in an April story. Access to fiber increased sale and rental prices in MDUs by three and eight percent, respectively.

Some forward-thinking communities, like Loma Linda in California, have gone so far as to modify their municipal building codes to require new construction to install fiber connections. While not widespread, this practice could foster economic growth on a community-wide scale.

Modest Investment Yields Results in Steamboat Springs - Community Broadband Bits Episode 163

When Steamboat Springs resolved to improve Internet access for key community anchor institutions and businesses, they decided to make an economical investment in a carrier neutral facility to allow multiple ISPs to invest and compete with each other. In episode 163 of the Community Broadband Bits Podcast, Tim Miles explains what that means and how they did it.

Tim is the Technology Director at Steamboat Springs and South Routt School Districts in Colorado. He tells us about the poor connectivity the community had from CenturyLink and how they opened a bottleneck to encourage more investment. In part because of how Colorado limits local authority to build networks, they formed the Northwest Colorado Broadband Cooperative with the local Chamber of Commerce.

They are already seeing benefits in the form of lower prices for anchor institutions and reduced outages - Tim describes just how painful those outages had been when there was no local Internet choice.

Read the transcript from this discussion here.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below.

This show is 20 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

Listen to other episodes here or view all episodes in our index. You can can download this Mp3 file directly from here.

Thanks to bkfm-b-side for the music, licensed using Creative Commons. The song is "Raise Your Hands."

Community Broadband Media Roundup - August 10

Colorado

Wired for speed by Mary Shinn, The Durango Herald

 

Delaware

Newark exploring city-sponsored Internet by Xerxes Wilson, Delaware Online

 

Indiana

Board eyes way to bring fiber optics to Triton Central by Andy Proffet, Shelbyville News

 

New York

State looks for opinions on telecommunications future by Craig Wolf, The Poughkeepsie Journal

Broadband initiative advances in Allegany County By Brian Meyer, WBFO

A key step was taken within the past week when the Board of Legislators approved a local law that will pave the way for the creation of a not-for-profit local development corporation to manage the system. Pullen says the LDC will ensure that the county will have some control over the system.

“We’re not a business. We’re government. So we don’t want the county to be operating that, but we want the county to ultimately have control," Pullen said. "It owns this facility and wants it to be maintained and operated in the public interest.”

 

North Carolina 

Gigabites: Ting Scouts NC for New Gig Sites by Mari Sibley, Light Reading

 

Oregon

Where broadband is a utility, 100Mbps costs just $40 a month by Jon Brodkin, ArsTechnica

“Part of the culture of SandyNet is we view our citizens as owners of the utility,” City IT Director and SandyNet GM Joe Knapp told Ars in a phone interview. “We've always run the utility on a break-even basis. Any profits we do have go back into capital improvements and equipment upgrades and things like that.”

 

Tennessee

Chattanooga ISP Takes Aim at Ten Gigabit Broadband Speeds by Karl Bode, DSL Reports

 

General Broadband News

What have we learned from Google Fiber? by Blair Levin, C-Net

Another critical lesson, highlighted at last week's hearing by the executive director of Next Century Cities, is the important role of local levers and leadership. While a federal deployment agenda is vital, what Google Fiber understood, and others such as my own organization, Gig.U, also exploited, was that the policies that most move the needle on lowering construction and operating costs are decided in city hall.

Who Has Citywide Gigabit Internet Access for $100 or Less?

As Westminster begins serving customers with its new FTTH network and partner Ting, we were curious how many communities are there where a residential subscriber can obtain affordable gigabit access? We estimate the number of networks, large or small, where a majority of residents in a community can obtain gigabit service for $100 or less to be 12. Westminster will be there in a few years.

Update: Russellville, Kentucky and Salisbury, North Carolina, also offer a gigabit, bringing the total number of fully gigabit cities to 14.

Municipal citywide, sub $100 gigabit providers:

  • Leverett, Massachusetts
  • North Kansas City, Missouri
  • Chattanooga, Tennessee
  • Tullahoma, Tennessee
  • Sandy, Oregon
  • UTOPIA Cities, Utah
  • Russellville, Kentucky
  • Salisbury, North Carolina (Fibrant)

Cooperatives:

  • Paul Bunyan Communications, Minnesota
  • Farmer's Telecom, Alabama
  • Co-Mo Connect, Missouri

Private Companies:

  • Google - Kansas City, Provo
  • MetroNet - Crawfordsville, Indiana (formerly a muni)
  • Burlington, Vermont - (currently privately owned, formerly a muni with future in limbo)

We included municipal networks, cooperatives, and privately owned companies. When considering networks that cover multiple jurisdictions in a single area, we counted it as one (thus Google counts as 1 in KC, Chattanooga is 1 in TN). And we were looking for gigabit networks - not just gigabit download. While we prefer to see symmetrical connections, we accepted 500 Mbps up for our threshold.

We could not identify any cities served by AT&T, CenturyLink, Verizon, Comcast, Cox, or any other similar company where the majority of the community has access to a gig. Those providers tend to cherry pick and even then, their prices are over $100 typically. For example, CenturyLink advertises a gig at $80 but then requires other services and hidden fees that make the monthly bill closer to $150.

We found affordable residential gigabit service from networks in urban, suburban, or rural communities from 12 networks (some of which cover multiple communities). Trying to determine how much of the community has access to a service is challenging, so please contact us with any corrections. In a few years, munis like Longmont and private companies like Ting will join the list. 

While the number of providers are few, many of them do serve multiple communities. The coops, including Farmers Telecommunications Cooperative in Alabama and Missouri's Co-Mo Cooperative, provide the service to a long list of smaller communities within their service areas. There is also the open access network UTOPIA, with at least 7 providers that offer gigabit FTTH below our price point in nine communities currently served by the network (to various degrees, some cities have little coverage whereas others are almost entirely built out). 

Prices range from $0 to $99.95 per month with the highest concentration at $70 or higher. In North Kansas City, residents pay $300 for installation and receive gigabit Internet access for $0 per month for the next 10 years. This incredible offer is available due to the presence of LiNKCity, a network deployed by the city and now managed and operated by a private partner. 

AT&T has launched its $70 GigaPower in parts of 12 different metro areas, although the price requires users to submit to a special web based advertising program. Even when these big firms finally invest in high capacity connections, they find new ways to exploit their subscribers - a reminder that who deploys a technology can be as important as what that technology is.

Now that the gig barrier has been blasted away (primarily by municipal networks and smaller ISPs) we expect to see more networks and providers offering affordable gig service to residents. 

Gigabit Cat photo courtesy of Michael Himbeault and shared through a Creative Commons license.

Carl Junction Pulls Out of Public Private Partnership

In the spring, we reported on a public private partnership agreement between the community of Carl Junction and Wi-Fi provider Aire Fiber. According to City Administrator, Steve Lawver, the City Council had second thoughts and pulled out of the deal.

Even though the partnership has ceased to be an option, the people of Carl Junction will still have better connectivity. Aire Fiber found the interest level was so intense that it will independently deploy the equipment to serve the community's 5.6 square miles and approximately 7,400 people.

As part of the abandoned partnership agreement, the city would have paid for and provided locations to mount necessary equipment. Aire Fiber would have handled installation, management, and technical aspects needed to keep the network up and running. In exchange, the city would have received 10 percent of the gross revenue from the network. The system would have cost an estimated $400,000 - $450,000 to deploy and both entities estimated just 10 percent of the market would have allowed them to break even.

Now the city has typical water tower lease agreements with Aire Fiber. Each tower mounting Aire Fiber equipment brings in $100 per month. 

Carl Junction has been searching for better Internet access for its businesses, schools, and residents for several years. In 2012 they commissioned a feasibility study and decided in 2013 to move forward with plans for a fiber network. Unfortunately, the community had to seek other options when it chose not fund the $5.2 million project.

As a post mortem, Lawver advises other city officials to take the time to educate elected officials and not rush the process, especially when the time comes for final approval. 

Our process from FTTH feasibility to this final agreement took 4 or 5 years.  Be patient. Understand that if you get down to the final agreement there is a good chance you may be the only person left that remembers the whole process.

"Fibervention": Break the Cable Habit In Chattanooga

If you are lucky enough to live in a community where you have a municipal network as a provider, you already know they often go the extra mile to serve customers. However, they don't always market as well as the incumbents, something that is starting to change with naturally viral ads. Enter Chatanooga's "Fibervention" campaign.

The campaign encourages current subscribers to nominate non-suscribers for a gift package:

  • Three months of FREE EPB Fiber Optics service
  • Three months of FREE Smart Network or Smart Network Plus service
  • A Roku online streaming player
  • Six months paid subscription to Netflix
  • $100 iTunes gift card
  • EPB branded gear

They have even created this video, highlighting all the reasons why EPB is so much better than the competition:

As a follow up, EPB released a second video showing the installation at the home of Ms. Martha, the first winner.

With winners like Ms. Martha, this campaign is sure to draw some attention. If you pay attention, you'll see Chase, an actual EPB installer that has become very popular around the community, with some people actually requesting he specifically install their service. At a conference awhile back, many of us assumed in an early ad that he was from a stock photo, but he is real.

New Video Series on Better Broadband in Cambridge, Massachusetts

Cambridge, Massachusetts has established a Broadband Task Force and is looking for ways to better its local connectivity. In order to educate the public about the advantages of broadband, the local community CCTV channel will televise presentations and sit-downs between local leaders who can describe how it will impact Cambridge.

The first episode of Cambridge Broadband Matters recently aired and is now available to view. It runs approximately 30 minutes long and features Georgiana Chevry of Cambridge Community Learning Center, Susan Flannery of Cambridge Public Library, and Jay Leslie of the Cambridge Housing Authority.  

One of the topics they address in this episode is the connection between broadband and adult education and workforce development. The issue is critical in Cambridge and many communities as we transition to an information based economy.

 

Cleveland Investigating Fiber Pilot Project in Tennessee

After a feasibility study on the possibility of a municipal triple-play fiber network left Cleveland Utilities feeling "…not overly optimistic…" community leaders have decided to rethink their strategy. The utility board recently voted 5-0 to look deeper at a network that would offer only Internet and voice services.

Rather than study the feasibility of serving the entire community, CU wants to first try their hand at working on a limited area with a pilot project. The next step is to work with a consultant that will conduct a more focused feasibility study and develop a business plan.

In June, CU CEO Ken Webb told the board:

"I will go ahead and tell you that it's not overly optimistic about us being able to provide 'triple play' [Internet, television and phone] services," Webb said. "The capital requirements are extensive, and the startup cost could present issues."

"There is a possibility of offering services that are not full-blown services," Webb said. "There are a lot of decisions yet to be made, and a lot of review has yet to take place."

After more review of the study, Webb asked the board at the July meeting to consider further consideration for the pilot project, much like the process in Erwin, Tennessee. The Times Free Press covered the meeting where Webb reported that Erwin expected to break even on its pilot project once it took on 180 customers. After recently commencing the project, it quickly signed up 150 subscribers.

As municipalities are considering how to improve their local connectivity, subscriber interest in video services continues to drop. The associated expenses such as head end equipment and the rising cost of content lead a number of them to offer only Internet access and voice. Longmont, Colorado, and Sandy, Oregon, are two recent networks that have decided not to directly offer video, though Sandy is negotiating with a vendor to include a video package in their service.

Cleveland, home to approximately 41,000 people, is considered part of the Chattanooga statistical metro but is not served by the Chattanooga EPB, in part due to state restrictions. Even though the FCC scaled back those state laws in February, the issue is under appeal. Chattanooga border communities such as Cleveland are in limbo as they debate whether or not to wait for the possibility that EPB may one day extend out to them or to take action on their own.

"We owe it to the community to determine whether or not this is a viable project or not," said Webb.