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Locals Celebrate iTV-3 and UC2B Expansion in Champaign-Urbana

The expansion in Champaign-Urbana has begun! On May 8th, iTV-3 held a ribbon cutting to celebrate the start of its plan to bring fiber to the homes of neighborhoods that sign up for service. IllinoisHomePage.net reported on the event with the video below.

An April press release announced the celebration that kicked off efforts to meet iTV-3's ultimate goal:

This will enable iTV-3 to expand the network and provide Gigabit service to more than 250,000 homes including 45,000 households and businesses in the Champaign-Urbana area. 

The company has promised to expand to neighborhoods where they achieve a 50 percent commitment. 

Earlier this year, the ISP increased speeds for free in order to offer service that meets the minimum speeds as revised by the FCC. The lowest tier available from iTV-3 via the UC2B network is now 30 Mbps. All speeds are symmetrical.

The UC2B partnership with iTV-3 has been heralded by public leaders. UC2B's private sector partner, iTV-3 is an Illinois company with a track record of business decisions that support local communities. Their agreement is structured in such a way that will protect the UC2B nonprofit and subscribers in the future. At the event, a representative from iTV-3 briefly described the company's approach to the communities it serves:

"We own and operate the Family Video stores nationwide as well, and for us, we've always enjoyed being part of the community and this in and of itself is a community wide effort," said Trevor Rice, who is the marketing director for iTV-3. "Without the community's involvement, we're not going to be able to expand." 

 

FTTH Adding Value to Apartments and Condos, Studies Show

Urban real estate investors take note: FTTH has come of age in the multi-dwelling unit marketplace. (MDU). When looking for new homes, many more renters and owners are now considering FTTH a necessity.

Several studies have established that fiber raises the value of single family homes by $5,000 - $6,000 on a home valued at $300,000. A July 2014 survey, commissioned by Broadband Communities magazine and conducted by RVA LLC indicates that similar results influence MDUs. Clearly, access to FTTH adds measurable value to real estate.

The study examined numerous factors related to knowledge, use, satisfaction, and adoption of FTTH related to MDUs. RVA broke down the results by age, economics, and education attained. While some results were surprising, others were predictable. For example, level of education attained is not necessarily consistent with knowledge of the benefits of FTTH. The study reflects that those with a graduate degree did not have the same appreciation for the technology as those with some college less than a four-year degree.

The level of satisfaction when comparing FTTH to cable, DSL, wireless, and satellite options was not surprising. Of course, fiber-to-the-home far out performed any other technology.

The survey also found that access to broadband has become as important as other utilities: 

Overall, survey respondents indicated that broadband was, indeed, their top amenity. This finding confirms other recent polling and provides finer-grained details: For MDU unit owners, access to good broadband is now the top amenity by a large margin. Renters rated broadband second in terms of amenity importance, close behind “in-unit washer/dryer.” Broadband was valued highly in all types of buildings but especially in student housing and in luxury buildings.

FTTH can influence sale value by 3 percent and rental value by 8 percent. The additional revenue to the building owner far outweighs the initial investment:

For an MDU building owner, outfitting an apartment with FTTH would yield $972 more annual rental revenue and $209 more revenue from lower vacancy rates, the survey shows. Having FTTH at the site would also result in a $120 savings in marketing, administration and maintenance stemming from 31 percent lower churn and more word-of-mouth advertising, according to the survey.

In a May 2014 American Planning Association report, Investing in Place [PDF], researchers asked Millenials, Boomers, and Gen Xers to rank their priorities for urban landscapes:

When asked about high priorities for metro areas, Active Boomers cited high-speed Internet access and affordable housing equally at 65 percent each, which was second only to safe streets (79 percent). Millennials ranked internet service third with 58 percent; safe streets cited first with 76 percent and affordable housing cited second with 71 percent. Generation Xers also ranked Internet service third with 51 percent; safe streets was first (69 percent) and affordable housing was second (57 percent).

These same three metro features also were cited in the same order by three of the four different types of communities — urban, suburban, and small town — and each of the four regions. 

Fiber it quickly becoming on par with considerations of floor plan, natural light, and location. From the Broadband Communities survey:

MDU developers and managers should be marketing broadband, especially FTTH broadband, more aggressively. This is especially true given that broadband is the only amenity (in the list respondents used) that cannot be seen with the naked eye. 

In Reedsburg, Expansion Weighed After Muni Fiber Success - Community Broadband Bits Episode 147

The first gigabit city in Wisconsin, Reedsburg, has a municipal fiber network operated by the city-owned electric utility. This week, we talk with General Manager of the Utility Commission, Brett Schuppner. Reedsburg fiber goes back to 2003, which makes it one of the oldest FTTH networks in the nation.

Located about an hour outside of Madison, Reedsburg has seen more investment from local industrial businesses because of its fiber network. They received a broadband stimulus award to expand their network into some surrounding rural areas and are now considering how they can continue expanding the network deeper into surround Sauk County without federal assistance.

We talk about what goes into these expansion discussions - what is the dynamic when one community has a great network and the County would like it to expand?

Read all of our Reedsburg coverage here.

Read the transcript from this conversation here.

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

This show is 13 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 previous episodes here. You can can download this Mp3 file directly from here.

Thanks to Persson for the music, licensed using Creative Commons. The song is "Blues walk."

Longmonters Loving NextLight in Colorado

Longmont's NextLight municipal broadband service is surpassing projected take rates, reports the Longmont Compass. The business plan called for 34 percent but as LPC builds out the FTTH network, the first phase of the project has achieved 45 percent.

In response to the positive response, LPC will speed up completion of the project. From the Compass:

“Our schedule was already aggressive, but we’ve heard repeatedly that our community is eager to receive high-quality, high-speed broadband,” LPC general manager Tom Roiniotis said. “So we’re accelerating the deployment.”

LPC now plans to “close the circle” from two directions at once as it completes its citywide buildout, rather than move around Longmont in one counterclockwise sweep. That means the final phase of the build is now scheduled to start in the first quarter of 2016 instead of the first quarter of 2017.

As we reported last fall, gigabit symmetrical service for $50 is available for customers who sign up within three months of service availability in their area. That rate follows customers who move within Longmont and transferable to to the next home owner.

Chanute and Chattanooga Added to List of Rural Broadband Experiment Funds

A year ago, the FCC accepted applications from entities seeking Connect America funds for rural broadband experiments. After provisional awards and some eliminations, Chanute's FTTH project, Chattanooga's EPB, and a number of additional cooperatives are now on the list of provisional winners reports Telecompetitor.

According to the article, $27 million became available when 16 entities were eliminated for various reasons.

A recent Chanute Tribune article reports that the city's expected award will be approximately $508,000 if it passes the FCC's post-selection process. Mikel Kline, a consultant working closely with the city on its FTTH project told the Tribune:

It is Kline’s understanding that this $508,467 would be cost support for the city’s Fiber to the Home network over the next six years. It requires the city to become an eligible telecommunications carrier, and to finance and construct the fiber network.

This money can be used to pay operational costs or offset a portion of the debt on the city’s investment in the local infrastructure over the next six years.

Remember that Chanute has developed its fiber infrastructure incrementally over more than two decades. The community is moving ahead with its FTTH project to share the benefits of fiber with residents and more businesses after bringing better connectivity to schools, municipal facilities, and a growing number of businesses. 

Recently, the city applied for and received state approval to bond for deployment costs. A 1947 state law required the application be filed with the Kansas Corporation Commission, the state entity concerned with utility regulations. According to Kline, the city has also applied for eligible telecommunications carrier (ETC) status. This designation will allow the city, as a common telecommunications carrier, to obtain Kansas Universal Services Funds.

Read more about their accomplishments in our 2013 case study. We also interviewed Larry Gates and J.D. Lester from Chanute about the network in episode 16 of the Community Broadband Bits podcast.

Opportunities and Challenges as Lafayette Considers Muni Fiber Expansion - Community Broadband Bits Episode 144

After we heard that Lafayette's LUS Fiber was considering expanding to some nearby communities, we knew we had to set up an interview with Terry Huval, Director of the Lafayette Utilities System in Louisiana.

In our interview this week, Terry and I discuss Lafayette's success, the legacy of the law creating special barriers that only apply to cities building fiber networks, and the challenges of expanding LUS Fiber beyond the boundaries of the city.

We also discuss some plans they are developing to celebrate the 10th anniversary of the referendum on July 16, 2005, in which a strong majority of voters authorized the building of what was then the largest municipal FTTH network in the nation.

Despite its success, Lafayette has been targeted by cable and telephone shills that are willing to say just about anything to defend the big corporate monopolies. We addressed these attacks in this Correcting Community Fiber Fallacies report.

Read the transcript from this interview here.

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

This show is 28 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 previous episodes here. You can can download this Mp3 file directly from here.

Thanks to Persson for the music, licensed using Creative Commons. The song is "Blues walk."

Lafayette Considers Expansion, One Nearby Town Strikes Itself From List

We have long applauded communities that have built their own fiber networks and then elect to expand them to neighboring communities. In Louisiana for example, Lafayette could hoard its network, forcing people that want the best connectivity in the region to move within its borders. But instead, it is preparing to expand the network.

City-Parish President Joey Durel announced that the municipal network would begin expanding beyond Lafayette city limits. An article in The Advocate quoted Durel:

“As I have traveled this parish, one of the most common things I am asked is, ‘When will we get fiber?’ That answer depended in large part on making fiber successful in Lafayette. We’re there,” Durel told the crowd that filled the Cajundome Convention Center.

Durel noted that municipalities that make agreements with Lafayette based on future annexation will be considered if they are willing to pay for the cost of expansion in their communities. Youngsville is reported to be the first town be consider Lafayette's proposal for bringing better local residential and business connectivity.

Any expansion of municipal networks has to answer some of the same important questions of any partnerships - how to allocate risk and benefits. It doesn't seem appropriate for Lafayette to assume the full risk of expanding the network to Youngsville, for example. Those who receive the benefits should assume some risk, and those who assume risk should be compensated in some measure.

One community, Broussard, is balking. Apparently, the town of 6,800 people located just outside Lafayette city limits does not want to contribute to the cost of fiber in their community, reports The Advocate. Understanding these fights from afar is always challenging because neighboring communities have often developed animosity over decades from both real and imagined slights.

Broussard has taken a hard line:

“There is no way we are going to give LUS the money to extend their fiber lines in Broussard for them to profit off of our infrastructure and the business of our citizens,” Broussard Councilman and Mayor Pro-Tem Johnnie Foco said in a statement…

Seeing such strong statements, we are forced to recall the extremes Cox Cable has gone to in an effort to thwart potential competition in the past. We don't know the terms LUS is offering, though we hope to update our reporting on this in coming days. What we do know is that expanding the LUS Fiber network will require a significant capital cost and risk. If Broussard doesn't want to contribute it all, it should get used to its Cox monopoly. 

Small Illinois Town Will Vote On Fiber Investment in April

The Village of Gilberts, Illinois, will ask voters in April to authorize up to $5 million in General Obligation bonds to deploy a FTTH network reports the Daily Herald. GO bonds are rarely used for network deployment but often used for public works projects and other publicly owned assets. Due to the funding mechanism in Gilberts, the network would be publicly owned.

"It's something that is not readily available in other communities," Village Administrator Ray Keller said. "It would set us apart and put us on a path to better meet the needs of our residents and businesses as their demands and needs for technology grows."

The community, home to 6,800 people, has experienced rapid population growth since 2000. At that time only 1,200 people lived in this northeast Kane County village.

According to the article and January Board of Trustee minutes [PDF online], the bond issue would increase property taxes 1.8 percent on most tax bills. Properties with a market value of $250,000, which is most common in Gilberts, would pay an additional $150 per year or $12.50 per month to fund the infrastructure deployment. There are approximately 2,400 taxable properties in Gilbert today but as more properties are built, each property owner's share would decrease. 

This is the second time the village has planned for a fiber network to improve connectivity throughout the community. In 2013, Gilberts entered into an agreement with i3, a British company that eventually folded, to deploy fiber using sewers as conduit. In that plan, i3 would have owned the fiber network.

Developer Troy Mertz is spearheading the project. His company is investing in a new housing development that will eventually include an additional 985 new homes. As part of that development and independent of the municipal fiber project, Mertz is installing fiber to each structure at his own expense. His company, iFiber Networks will also run fiber to nearby municipal and public safety buildings and the Gilberts Elementary School. According to the Daily Herald, iFiber is not charging the city for bringing fiber to its facilities or the school.

Mertz said it's hard to quantify how much additional money he's spending on granting access to village buildings and the elementary school, but it's something he's doing because it will benefit everyone, he said.

"It's a mutual success type of thing," he said. "I hope that by bringing these services into the village, it benefits not just my community but the community as a whole."

The housing development, called The Conservancy, was originally conceived prior to 2007 but the original developer filed for bankruptcy before the project could get off the ground. There is already some street infrastructure in place and the proximity to the elementary school makes the location attractive, says Mertz. Adding fiber to the new homes will make them more attractive and, according to a 2014 FTTH Council study, increases the value of propoerties up to $5,000.

In order to reduce the cost of the deployment, the Gilberts network will piggyback the iFiber network along the iFiber route.

Using GO Bonds will keep the interest rate down because the community pledges its full faith and credit to pay back the investors, resulting in very little risk. A benefit of tying the bonds to property taxes is that the investment increases the property value. Thus, if a homeowner moves out of town, the cost of paying back the bonds stick with the property that was improved with the network, not the homeowner him or herself. 

On the other hand, incumbent cable companies will often argue that this allows local governments to borrow at lower cost than the private sector providers can. Whether or not this is even true is hard to say give the incredible cash flow of these de facto monopolies that raise prices on an annual basis. Additionally, the benefits of having built the original cable networks as part of a government sanctioned monopoly are hard to quantify, so there is little reason to suggest that using GO bonds is actually unfair when compared to the many advantages of entrenched incumbent providers.

The referendum is set for April 7th.

Waverly: The Next Gigabit Community in Iowa

Remember Waverly, Iowa? We introduced you to the town of 10,000 back in 2013 when they revived the community choice to develop a telecommunications utility. Recently in February, the Waverly Light and Power Board of Trustees approved a long awaited gigabit project reported American Public Power.

According to a WLP press release, the $12 million project will be financed with revenue bonds which have already been secured. As we note in our Financing Municipal Networks fact sheet [PDF], this is one of the most common ways of funding deployment. Revenue from subscribers pays the private investors that buy the bonds used to finance the deployment.

Construction is scheduled to begin in May and WLP expects to begin serving customers in 2016. WLP serves approximately 4,800 customers in town and in the rural areas around Waverly. Early plans include incentives for early sign-ups such as a free first month of service and a reduced installation fee. The fiber network will also be used for smart metering.

From the WLP press release:

“It may have taken 15 years of planning and hard work to finally come together, but knowing what’s to come, it’s worth the wait,” explains Ael Suhr, Waverly Light and Power Chairman of the Board. “This approval opens the door for new alternatives for high-speed internet, cable and phone services in Waverly for both residents and businesses.”

International Media Covering NextLight Strides in Longmont

Longmont's NextLight is well known in the municipal networks space; now other media markets are starting to notice the most recent network in the Centennial State. CCTV America profiled the network recently, highlighting its importance to local businesses.

CCTV spoke with a local tech business owner who had recently connected to the municipal network:

Jon Rice is a web developer for whom a reliable computer connection is critical.

“Our entire business is basically predicated on having fast, easy access to the Internet,” Rice said.

Like many other modern households, Rice describes how their home hosts multiple devices. NextLight's $50 per month gigabit tier is a necessity for both his residential and business needs.

"It's a no brainer for us; the faster the better," says Rice in the video.

Demand is high in Longmont, where the community chose last fall to bond in order to speed up FTTH deployment. In a USAToday article from last November, Tom Roiniotis, Manager of Longmont Power and Communications, described how the utility was struggling to keep up with the requests for service:

"It's a good problem to have, scrambling to keep up with demand," Roiniotis said. "This is something we're doing locally and it's a big source of community pride. The money stays locally and if you have a problem you can just drive 2 or 3 miles down the road and come talk to us. People realize it's just as important ... as reliable energy and clean water." 

Thanks to Jon Rice at the Longmont Compass who alerted us to this video and the story:

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