Jim Baller, an attorney and well-known advocate for municipal broadband, likes to bring out an old copy of "Moody's Magazine and American Investments" from 1906 with such articles as "Municipal Ownership a Delusion" and "Municipal Ownership Always a Failure" about public power systems. He then cites a number of municipal systems that have the lowest costs in the country...
Longmont Referendum: Haven't We Been Here Before?
November 5th probably seems like deja vu for the people of Longmont, Colorado. For the third time, the voters will respond to a ballot question that will impact their community's connectivity. Past referendums addressed whether or not the community could use its fiber ring for connecting businesses and residents.
They now have that authority. This year the question will be "when?"
Local incumbent providers grossly outspent municipal network supporters in 2009 and in 2011 with astroturf campaigns against referendums. Nevertheless, voters decided in 2011 to grant the local utility permission to use existing fiber resources to bring connectivity to businesses and residents.
Since then, Longmont Power and Communications (LPC) began a slow build-out of fiber to businesses and homes within 500 feet of the existing loop. Local businesses, frustrated with poor service from Comcast and CenturyLink, jumped at the opportunity to have real high-speed connections. With a long list of businesses in queue for their connections, the City Council voted to use LPC reserve funds to connect businesses and residents to the loop. Clearly, the people of Longmont were ready for something better than the existing incumbent services.
Local blogger Steve Elliott connected to the service in September. To satisfy his curiosity, he ran speed tests immediately before and after he transitioned from Comcast service.
I also timed downloading movies on Netflix on my TV. Before, I could run upstairs, get an adult beverage and be back in my chair before the movie loaded. Now – if it takes 10 seconds – it’s a really long movie.
After a month with LPC fiber and new computer system, Elliott ran more speed tests. Results topped out at 739.66 Mbps download and 534.75 upload for LPC Fiber.
Elliott also compared prices:
Comcast: $71.95 per month ($863.40 per year)
LPC Fiber $49.95 per month ($599.40 per year)
We compared Comcast to Longmont fiber in this entertaining comic strip.
Elliott is not the only Longmont resident who wants to connect to LPC fiber. Calls to "get it done" from residents and businesses did not fall on deaf ears at the May Longmont City Council meeting. The Council voted unanimously to bring fiber to every resident and business that wants it. Next, community leaders and LPC investigated financing. The reserve fund, developed from years of dark fiber lease revenue, could pay for the expansion but the project would drag out over a decade.
Rather than see the project finished in more than ten years, the community can become entirely connected within three years with a $44 million revenue bond issue. LPC will use $35.4 million as capital to build out the network and the remaining as reserve for debt-service. State legislation sponsored by USWest from 2005 imposed the referendum requirement on local communities; the voters must decide. USWest became Qwest became CenturyLink.
The Times-Call reproduced the 2B Ballot Question language:
"Without raising taxes, shall city of Longmont debt be increased in an amount not to exceed $45,300,000 by the issuance of revenue bonds for the purpose of financing fiber optic system capital improvements to provide high-speed broadband service, including but not limited to internet, voice and video services; and shall the bonds be paid solely from the city's electric and broadband utility enterprise revenues and be sold in one series or more at a price above, below or equal to the principal amount of such Bonds and with such terms and conditions, including provisions for redemption prior to maturity with or without payment of a premium of not more than 3%, as the city council may determine?"
Unlike past referendums, gigantic telecom providers have not spent large amounts of cash to fuel misinformation campaigns this time. Local citizen group, Friends of Fiber, is prepared to face-off against Comcast and CenturyLink. From a Times-Call article:
"It's as baffling to us as it is to you," said Scott Converse of the pro-2B group Friends of Fiber, which had been expecting to see another large push by the telecom companies. So far, he said, the only "anti" activity anyone in the group had seen was a telephone poll in September by Frederick Poll, a Virginia-based firm.
"We're wondering if maybe there's going to be a push near the end," Converse said. "I can't imagine why they're waiting."
The silence is welcome but a little eerie.
Update: In a letter to the editor, George Oliver wrote:
We have been providing our own electricity for more than 100 years and our rates are among the lowest in the nation. The same will be true if we expand our own fiber network. Because Longmont Power & Communications is a not-for-profit agency of the city, our low rates and network availability will help to retain and attract businesses to our city. This is the kind of visionary investment that will pay big dividends down the road.