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New Details on Possible FTTP Network in Holland, MI

In March, we wrote about a prospective municipal fiber network project in the western Michigan city of Holland. Holland’s Board of Public Works (HBPW) began a pilot test in January, offering gigabit speed services to three commercial buildings in the city via a system of dark fiber cable that the city has owned for more than two decades.

Holland’s Board of Public Works (HBPW) has since released a study that details options for a citywide municipally owned Fiber-to-the-Premises (FTTP) network. Although the study is only a first step toward developing a final business plan for the network, it gives significant insight into the city’s plans for the project.

Prospective Network Footprint and Business Model

In the first option, the city could invest $63.2 million to add nearly 500 miles of fiber lines to the city’s existing fiber infrastructure to create a municipal FTTP network for the entire HBPW service area. The new network would reach all of the homes, businesses, and municipal facilities in Holland and in neighboring communities that fall within the HBPW’s service area.

The second option suggests a $29.8 million investment on a fiber network with a smaller FTTP footprint that would provide gigabit speed fiber connections to all premises within the Holland city limits.

According to the study, the city prefers a “hybrid open access” business model in which Holland would provide retail services while also preserving its current open access model. The study also discusses potential FTTP models the city could consider, including one in which the city serves as the network’s sole ISP as well as several different potential public-private partnership (PPP) models that have been successful in other cities.

The study suggests that the city can finance the larger of the proposed network projects with a combination of bonds and loans. The study assumes a 39.6 percent take rate

Faster Speeds, Better Rates

The fastest connectivity customers in Holland can get from the existing city network is not competitive on speed and price with the services offered by local incumbent providers. The established network serves only commercial customers; the pilot project is the city's experiment in residential and small- and mid-sized business connectivity.

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But with a newly expanded FTTP network, the city would dramatically improve options to residents and businesses. Based on their 39.6 percent take rate, consultants proposed subscription rates for 1 Gigabit per second (Gbps) Internet access:

  • Residents: $80 per month
  • Small commercial service: $85 per month
  • Medium commercial services: $220 per month

The study notes an additional, one-time $820 charge to connect each premise to the network.

Opportunity for Local Collaboration?

The city of Holland may also have the opportunity to cooperate on a broader network plan with Laketown Township, a neighboring community that recently proposed creating its own municipal fiber network. Laketown Township, part of which falls within HBPW’s service area, will vote in May on a proposed $8.6 million fiber network.

"When we began developing the fiber broadband business plan, we were unaware that Laketown was also pursuing fiber for the township,” a statement from the HBPW said. “We will gladly work and meet with Laketown officials to coordinate our offerings."

Local Fiber = Local Benefits

Whatever the final decision, Holland City Council Member Brian Burch makes a powerful argument highlighting the economic and quality of life benefits for everyone who lives and works within reach of the future network:

"Like drinking water, access to information is the new public health…. Advances in information and communications technology means that education is no longer confined to the classroom and our children can become more competitive in the global economy. Like strong transportation infrastructure, such as roads, bridges and water channels, public infrastructure allows commerce to grow and for private business to thrive…. The “backbone” of this gigabit network is currently wired, our next step is to bring this capability into homes and small businesses. By doing so, Holland can be at the forefront of the new economy and define our region with more educated residents and an even faster-growing economy."

Dark Fiber Network Brightens Prospects In Valpo, Indiana

Valparaiso, Indiana, is investing in dark fiber to stimulate economic development; it is deploying ValpoNet, a dark fiber network to serve local businesses and institutions.

The city of approximately 32,000 people is a little over an hour southeast of Chicago and home to Valparaiso University, Purdue University North Central, Indiana Vocational Technical College, and several other colleges. The community also has a large manufacturing base and a number of hospitals and medical clinics, so there is an ample supply of entities with IT departments with the requisite knowledge to use a dark fiber network.

If At First You Don't Find Fiber...

In 2010, a regional economic development organization developed a report that identified the lack of fiber in "Valpo" and Porter County but no project developed. The city moved on to other things until 2014. A situation with a large financial information company in town breathed new life into the idea of municipally owned fiber. The company wanted to expand its facility and wanted to be sure it could access better connectivity. Several years earlier, there had been an ice storm at one of the company's home offices and, while they thought they had redundancy from the incumbents, such was not the case. They lost connectivity for days and from that point on, whenever they opened new offices, expanded, or relocated, redundancy was always a top priority. 

Valpo's Redevelopment Commission decided to hire a consultant to draft a feasibility study. He determined that a dark fiber network was not only possible, but needed. The study revealed that other companies suffered from poor reliability and considered affordability another pressing issue. 

The Commission, working with Economic Development Director Patrick Lyp, reached out to entities in Valpo and found that the university and healthcare facilities were also interested in the promise of better reliability via fiber-optic connections. Valparaiso University and two large regional hospitals, including St. Mary's, expressed their desire to participate. Local officials approached large companies directly and, while several indicated that contracts with incumbents must be fulfilled before making a switch, every local business they approached confirmed that they want ValpoNet.

Location, Location, Location

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As it turns out, the geography of Lake Michigan's southern tip pushes a number of transcontinental fiber lines south near Valparaiso; there are also splice points nearby which contribute to the plan. The city will deploy a dark fiber loop down into Valpo that will then circle back up to the big pipe about 10 miles north of the city. There will also be a redundant loop to ensure uninterrupted connectivity. With the exception of a few areas where the fiber requires aerial placement, the network will be entirely underground, which will help protect it from the elements.

Valpo has no plans to offer FTTH service for residents or businesses or to offer any other lit services. Their plan is to entice both large and small ISPs to provide service over the new infrastructure and are actively seeking providers even before construction begins. Like a number of other ex-urban communities near major metro regions, Valpo has one cable provider (Comcast) and one DSL provider (Frontier). There is also a local provider called Nitco that provides DSL, wireless, and some limited fiber services.

Prices in Valparaiso are higher than in the Chicago area and, according to Lyp, tend to drop as one approaches the metro. Community leaders hope this project will encourage competition and lower rates in the area.

City Savings Ahead

The municipal facilities have always been served by the incumbents because the city owns no telecommunications infrastructure. Serving municipal facilities is not part of the dark fiber network phase 1 plan, but Lyp anticipates it will likely be part of a future phase. As they develop the network, planners are considering ways to include fiber accessibility for city buildings and local schools. The network design integrates strategic placement where laterals can easily extend to schools, desirable business development areas, and locations within Valpo ripe for economic development.

Financing With Future Dollars

The cost of the backbone fiber network will be approximately $2.39 million; Valparaiso is funding the network with tax increment financing, or TIF. Other fiber projects have been financed with TIF in recent years, particularly in Indiana. TIF allows public financing based on future gains in property or sales tax that are limited to a certain geographic area that will obtain the redevelopment or infrastructure project. Local government can borrow the funds, build the project, then use the funds generated from the project to pay off the debt.

The method is gaining popularity for fiber-optic projects in Indiana, but it has been used for some time on other public infrastructure projects, such as toll roads, bridges, and transit systems. In some states, it has been used for decades while other states are slow to adopt TIF.

The Cost Of Going Dark

In April, the Redevelopment Commission reached out to local businesses with an informational meeting to answer questions and share anticipated connectivity costs. Each customer will pay a one-time installation fee of $500 for all circuits and drops. Monthly fees will be $1,000 for one pair of dark fiber strands to a business customer unless that customer is an Internet Service Provider (ISP) or some other entity that plans to resell use of the fiber. ISPs or similar entities will pay $1,200 per month for one pair of dark fiber. There will also be a monthly charge of $200 for each drop.

Because the network is dark fiber, businesses will still have to pay monthly fees to an ISP for Internet access. The Commission's executive director, Jim Mooney, encouraged attendees to sign a nonbonding letter of interest to help them prioritize 2016-17 construction.

Mooney told business leaders at the meeting that the Commission had signed a contract with a company in March and that construction will begin in July. The network is scheduled to be completed by the end of 2016.

Out Of The Gate Strong

In addition to strong support from local businesses that want to use the dark fiber network, other members of the community understand the benefits a dark fiber network will bring. In August 2015, the Northwest Indiana Times expressed their support for the municipal project:

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Anyone who says government should leave this solely to the private sector is missing a key point — that the private sector hasn't met this need.

Digital infrastructure is as much a part of economic and civic development as a strong, well-designed transportation network. We shouldn't punish this sort of progressive thinking by hanging on to outdated notions of what the government's role might be.

This is the answer to bridging the tech divide that is separating who will be successful from who will not be.

Managing The Network

Valpo offers municipal sewer and water utility service and while the community feels that their staff can eventually maintain the network, they realize that there is a learning curve. They want to be able to offer businesses connectivity managed by experienced professionals on launch so have issued an RFP to find a firm to manage and operate the network.

After working with an outside firm for the first couple of years, Valpo will determine whether or not to continue with a similar model or develop city talent to take over. Valparaiso has no electric utility like many other communities that invest in fiber networks.

Come To The Dark Side

A growing number of communities are now considering dark fiber investment to stimulate economic development and improve local connectivity. Recently, Huntsville, Alabama, announced it will be deploying a citywide dark fiber network on which Google Fiber will deliver retail services. Other communities have been using their dark fiber resources quietly for years with little fanfare; Burbank, California's dark fiber network is saving money and generating revenue.

Dark fiber networks require lower risk while still inspiring better connectivity in the community. Cities like Valparaiso need fast, affordable, reliable connectivity to be able to compete, especially with Chicago nearby. With ValpoNet in place, the city may be able to lure commerce from the Windy City with reliable connectivity, affordable rents, and a high quality of life.

As Valpo Mayor Jon Costas said in February:

"We're looking forward to being the first city in our region to offer municipal dark fiber, which will make us more competitive in attracting new businesses and jobs."

Be sure to check out Community Broadband Bits podcast #199, in which Chris interviews Patrick Lyp about the new ValpoNet.

Virginia Beach Growing Municipal Network For Savings, Development

Virginia Beach has launched a $4.1 million capital improvement project to extend the city’s high-speed Internet network to all municipal buildings. The network will also offer connection spots on the system for colleges, businesses, and neighboring cities, according to the Virginian Pilot.

The city (pop. 448,479) plans to more than double the reach of its municipal network, adding 73 more sites, including more police stations, fire stations, and libraries. Project work is currently underway and is expected to finish in the next year to 18 months. In addition to extending the municipal network, the project will include buying new networking equipment. The city is using money from its capital fund to pay for the project.

Once the project is completed, Virginia Beach will become the first community in the South Hampton Roads region of Virginia with its own Internet network linking all of its government buildings, the Virginian Pilot reported

Growing City Internet Needs

Virginia Beach started its municipal Internet network in 2002 with the local public schools. Since then, the city has invested a total $27 million to install about 225 linear miles of fiber-optic cable, linking all the public schools along with  “connecting many government buildings, including police stations, fire stations, libraries, recreation centers, and Human Services facilities,” according to a city news release.  

Today, Virginia Beach’s burgeoning Internet needs are fueling its municipal network expansion. The network helps maintain traffic lights, facilitates video conferencing, and provides infrastructure for email. A city spokesperson told us that 100 Megabit per second (Mbps) symmetrical service is available to most of the sites on Virginia Beach’s municipal network. 

Network Yields Savings

Once Virginia Beach’s municipal Internet network is fully implemented, the city will save about $500,000 annually in Internet access fees, Matt Arvay, Virginia Beach’s chief information officer, told the Virginian Pilot. For many years, Virginia Beach has paid to lease lines from Cox Communications for buildings not on its network. Without the need to lease those lines, the city can better control and predict their telecommunications costs.

Boosting The City’s Economic Development 

City officials see expanding their municipal network also as a strong enticement to retain and attract economic development, including biomedical companies and other new high-tech businesses.

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That includes establishing “connectivity opportunities for Old Dominion and Norfolk State universities and Tidewater Community College,” Mayor William D. Sessoms Jr. said recently in his 2016 State of the City address.   

The mayor and other city officials also envision their expanded municipal network will provide neighboring cities the opportunity to connect to Virginia Beach’s network for their own municipal broadband. 

In his State of the City address, Sessoms contended:

 “Virginia Beach is on the verge of becoming the East Coast’s fiber transmission hub, facilitating ultra-high-speed broadband communications across the ocean. Picture this….  Lines of fiber running beneath the Atlantic Ocean — from Europe and Brazil to Dam Neck Road, and on to fiber transmission facilities at the Corporate Landing Business Park….With the expansion of broadband, we are on the cusp of incredible economic growth leading to innovations and breakthroughs in medicine, business and technology.”  

Besides addressing its growing municipal needs, the city of Virginia Beach anticipates having enough fiber available to lease fiber to private businesses. If that occurs, one potential beneficiary could be the developers of a proposed biomedical park on 155 acres in Princess Anne Commons, according to Warren Harris, the city’s director of Economic Development,in the Virginian Pilot news story.

In April, the Virginia Beach City Council approved transferring that 155 acre parcel in Princess Anne Commons to the city Development Authority to create a biomedical-related business park. In an earlier news release, the city said, “Expanding ultra-high-speed Internet to the park is a high priority.”

2016 Municipal Technology Conference May 5, in Augusta, ME

The 2016 Municipal Technology Conference is coming up on Thursday, May 5th, 2016 at the Augusta Civic Center in the state capital. The conference is sponsored by the Maine Municipal Association (MMA) and the Maine GIS UserGroup (MEGUG) in cooperation with Maine’s ConnectME Authority

The conference title - “Ready. Set. Grow!” - captures one of the major themes of the conference, where several panel sessions will focus on the topic of municipal networks. Several Maine communities, including Rockport, Sanford, Orono and Old Town, and Bar Harbor, have made progress in the past couple of years toward creating locally-grown fiber networks. 

Some notable people appearing as panelists and presenters at the conference include:

Jeff Letourneau - As the Executive Director of Networkmaine, Mr. Letourneau oversees the University of Maine’s cyber-infrastructure. He has been involved in numerous network initiatives in Maine including the first Internet connection project in Maine in the 1980s, the first K-12 school and public library network (MSLN) in the US in the 1990s, and he co-authored a federal Broadband Technology Opportunities Program (BTOP) grant that led to a $25 million loan for Maine’s middle-mile network, the Three Ring Binder. Letourneau is also a member of the ConnectMaine Authority Advisory Board and a former member of the Maine State Legislature’s Broadband Strategy Council.

Sue Inches -  As a Senior Consultant for Tilson Technology Company, a Maine-based network construction and consulting company, Sue Inches has helped communities to successfully navigate the political waters of planning for municipal network projects for more than 20 years. She has also served in various other private and governmental positions, including a post as Deputy Director of the State Planning Office, a state agency that performs policy analysis and research for municipal projects.

Representatives from several Maine communities in various stages of developing municipally-owned networks will also appear at the conference, including:

  • Steven Buck - City Manager for the City of Sanford
  • Steve Cornell - Technical Systems Administrator for the Town of Bar Harbor
  • Belle Ryder - Assistant Manager for the Town of Orono

Appearing as a presenter will be Brian Lippold, the Director Broadband/Telecom Consulting for the James W. Sewall Company, an engineering company that has been working with the Maine Town of Fort Fairfield on a fiber network feasibility study.

Those interested in attending the conference can register and find additional details online. The cost of attending the conference is: 

  • $70 for MMA Member Municipalities/Patrons/Non-Profits/State Agencies, MEGUG Members, or ConnectME Authority Affiliates
  • $140 for Non Member Municipalities
  • $100 for Business Representatives

Grass Will Be Greener With FairlawnGig In Ohio

Fairlawn, Ohio, a quaint little city in Northern Ohio, it is about to get a big Gig – lightning fast Internet speeds of up to one Gigabit (1000 Megabits) per second (Gbps) – for $75 a month. The city has considered the prospect of such a network since last year, and now the community is moving forward.

On April 4th, Fairlawn City Council unanimously approved several ordinances to build a Fiber-to-the-Home network (FTTH) called “FairlawnGig.” For financing, the network will use revenue bonds in an agreement with the Development Finance Authority of Summit County.

A New FTTH Muni

In November 2015, Fairlawn hired a consultant and envisioned a public-private partnership for the FTTH plan of FairlawnGig. Now, however, these ordinances ensure that the $10 million network that will begin construction in May 2016 will in fact be a municipal network. The ordinances enable the city to enter into a contract with a firm to design and construct the network in the way that best meets the community’s needs.

Currently, the prices are established as:

  • Residential 1 Gbps – $75
  • Residential 100 Mbps - $55
  • Residential 30 Mbps - $30

All speeds will be symmetrical, so upload and download speeds are equally fast. The network will also offer phone service for an extra $25 a month. Businesses have similar speeds for prices between $90 and $500.

FairlawnGig will serve not only the 7,500 residents of Fairlawn, but it will also provide connectivity to the Akron-Fairlawn-Bath Joint Economic Development District. Ohio communities use these sort of districts to share infrastructure improvement projects.

From Vision to Reality

After thanking the City Council for passing the ordinances that have enabled the FTTH project, Fairlawn Mayor William J. Roth, Jr. further reiterated the purpose of the network:

“Our vision to make world-class, high-speed Internet services available to the residents and businesses of Fairlawn is now a reality. FairlawnGig will deliver a faster, better, and different Internet service from a trusted local provider, and will significantly aid in our efforts to promote economic development and commercial and residential growth in the City of Fairlawn.”

To learn more about the network and keep up to date on the project, check out FairLawnGig.net, the new network’s website.

Islesboro, Maine: RFP For FTTP Is Out There!

Islesboro is moving forward with plans to join Rockport, Sanford, and other Maine communities that want to improve connectivity for residents and businesses. They have released a Request for Proposals (RFP) to take them into the construction phase. From the Isleboro website:

The Town of Islesboro, Maine is seeking a contractor to manage the construction of a Fiber-to-the-Premise (FTTP) network spanning approximately 50 miles connecting 750 properties including a wireless component connecting outlying islands.

The Town is seeking bids for an Owner's Project Manager (OPM) to oversee fiber optic and wireless construction, network equipment installation, and inside wiring and customer premise installation.

Bids are due April 28th, 2016

The island town has also published a Question and Answer update to address common concerns.

The Maine Event

We have followed news of the proposed project, and learned that GWI will likely offer services via the publicly owned fiber infrastructure, much like in Rockport. Fairpoint DSL serves most of the island community's residents now and subscribers are not happy with unreliable, spotty Internet access. Last summer the community began the process of approving funding for the network, estimated at $2.5 - $3 million.

For more information, visit the Islesboro website.

April 21st Webinar: "Municipal Broadband: Competition, Opportunity, or Both?"

A diverse panel of telecom industry experts will gather on April 21st for a webinar to discuss the emerging partnership role of private Internet Service Providers (ISPs) within the growing municipal broadband movement.

Featured speakers at the webinar, hosted by the leading telecom industry blog Telecompetitor, will include:

  • Doug Dawson, President - CCG Consultants: Doug Dawson has nearly 40 years of experience providing support for the planning, fund-raising, technical and operational aspects of creating broadband networks. Dawson is also the author of POTs and PANs, a daily blog covering current issues in the telecom industry.
  • Mark Mrla, Business Unit Manager -  Finley Engineering: Mark Mrla is involved in the design, budgeting, scheduling, and implementation processes for power, telecommunications and technology projects for clients of Finley Engineering. 
  • Dan Olsen, Project Manager - Finley Engineering: Former General Manager for Minnesota's WindomNet, Dan has firsthand experience making a fiber network a reality. When the webinar is over, check out Episode #64 of the Community Broadband Bits podcast and listen to Chris interview him about WindomNet.

The hour-long webinar, sponsored by Finley Engineering, will air live on Thursday, April 21st from 2:00 - 3:00 pm Central Standard Time (CST). You can register to participate in the webinar on the Telecompetitor Website. Even if you cannot attend the webinar live, the organizers encourage you to register for the webinar because your registration instructions will include information about accessing Telecompetitor’s on-demand archives.

Once you register, you will receive instructions via email on how to join the discussion. The live discussion begins here on April 21st.

Knowledge Is Power

These discussions are essential for communities to learn the pros and cons of partnerships with ISPs. A growing number of local communities are watching as places like Westminster, Maryland, and Huntsville, Georgia, take smart approaches with potential partners. On the other hand, public private partnerships are fraught with risk. We encourage every community to carefully examine the facts, look at the options, and proceed with caution.

Three Communities Make Big Moves Toward Municipal Fiber Networks

A March article in Broadband Properties Magazine spotlights three communities around the country that are making progress toward creating municipal fiber networks. The City of Centennial, Colorado announced that they have completed a feasibility study and a Master Plan detailing the city’s plans to develop a network. Additionally, the Cities of Indianola, Iowa and Rancho Cucamonga, California announced that they have begun studying the feasibility of starting their own municipal fiber networks. 

Indianola, Iowa

Indianola, Iowa is a city of about 15,000 just 20 miles south of Des Moines. As we wrote a few years ago, Indianola currently owns an open access Fiber-to-the Premise (FTTP) network which provides Gigabit speed Internet access, plus TV, and phone service to most businesses and select residents in Indianola. The study they recently commissioned will explore the feasibility of using this existing network for constructing a FTTP network to the entire community. 

Indianola built its existing fiber network, which they launched in 2012, out of frustration as CenturyLink refused requests from the community to upgrade their DSL network and the incumbent Mediacom began overcharging for their Internet services. Today, Indianola Municipal Utilities is the infrastructure owner and a wholesale provider of this fiber network while Mahaska Communication Group, an Iowa-based Internet Service Provider (ISP), performs the operations and maintenance services for the network. 

Rancho Cucamonga, California

The City of Rancho Cucamonga, California recently asked a private consulting firm to perform a study to determine the feasibility of creating a fiber optic network. City officials see a municipal fiber network in this city of just over 170,000 as a potential driver of economic development. The city is located about 45 miles east of Los Angeles.

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Like Indianola, Rancho Cucamonga owns existing fiber-optic infrastructure. They city owns 25 miles of 96 strand fiber and 5 additional miles of vacant fiber conduit connecting to numerous municipal facilities. The city plans to first create a network for municipal buildings and businesses. Later, Rancho Cucamonga will integrate the network into the city’s traffic system and expand the network to serve residents.

Centennial, Colorado

The City of Centennial, Colorado released the results of a feasibility study and Master Plan in March. The study and plan detail a strategy to expand an existing 48-mile dark fiber infrastructure to create an open access network in this Denver suburb of 100,000.

The Master Plan calls for the city to spend $5.7 million to expand its existing fiber infrastructure and create a municipal fiber network that will provide vastly improved Internet access to all of the schools, libraries, local government and public safety organizations in Centennial. The city is also designing the network to run close to major business and residential areas and will have enough capacity to serve businesses and households. The city would serve as a wholesale provider and lease the network infrastructure on a non-exclusive basis to private ISPs that would provide retail services to subscribers. 

Centennial uses its 48-mile fiber infrastructure to facilitate operations of the city’s traffic signal equipment and to connect its government facilities to privately owned Internet networks. In 2013, Centennial residents voted overwhelmingly in support of a ballot question to reclaim local telecommunications authority that had been hijacked in 2005 when the state legislature passed SB 152. The voters’ 3:1 approval of that referendum opened the door to other possibilities for their publicly owned fiber.

Centennial’s Mayor Pro Tem C.J. Whelan, the chair of Centennial’s Fiber Steering Committee, described city’s vision for the network:

“This plan provides the roadmap for a future fiber-optic network infrastructure that will become a key resource of the city and ultimately enable Centennial to pursue improvements to public services and enhance economic development.”

City Councilwoman Stephanie Piko added.

“The city will now be in a position to partner with anchor agencies, such as school districts and public-safety agencies to offer better alternatives for their technology needs and improve their services to our residents.”

BT Advisory Board and Community Agree: Local Is Best

As Burlington, Vermont, searches for a buyer for Burlington Telecom, the local residents and business owners continue to remain engaged in the future of their beloved Fiber-to-the-Home (FTTH) network. Most recently, they made it clear that their first priority is finding a local company to own and operate the fiber network.

VT Digger reported that, according to a survey conducted by the BT Board of Advisors:

Several residents have said they would like to see Burlington Telecom sold to a locally owned co-operative and that their greatest concern is the utility being sold to one of its larger competitors such as Comcast, AT&T or FairPoint.

From the report:

Though the City is precluded by the terms of its settlement Agreement with Citibank from continuing to own the Asset, a carried equity interest is permitted. It is important that all ownership options be explored and considered in light of the legal requirements and the City’s goals for BT. However, the BTAB [Burlington Telecom Advisory Board] agrees with the vast majority of interested participants in this process that the sale of BT to one of its existing, national competitors would likely not be in the overall best interests of the City. 

At a recent meeting, David Provost, chair of the advisory board said, “The best option from our perspective is finding a buyer with ties to the local community that will allow the city to have a minority stake in Burlington Telecom."

A Troubled Past, An Uncertain Future

After years of cover-ups by the city's past leadership, CitiBank eventually sued Burlington for $33 million. The parties settled and, as part of the settlement, Burlington transferred ownership to Blue Water LLC, a company formed by Burlington businessman Trey Pecor. In exchange, Blue Water provided $6 million in bridge financing to allow the city to settle the lawsuit with Citibank. The city is still leasing the network temporarily but the ultimate goal is to find a partner to purchase the network. 

According to the terms of the settlement, Burlington can choose the new buyer but the sale must be finalized by January 2019. If not, Blue Water can choose the buyer and residents are worried it may end up being a company like Comcast, with no interest in the local community.

In December, as the BTAB wrapped up public meetings about the future of the network, VT Digger reported:

“We’ve heard very little to date about the $17 million,” Provost said, which is the amount of taxpayer money that was spent without authorization during Mayor Bob Kiss’ tenure to prop up Burlington Telecom. Provost said that’s come as a surprise, given the angry reaction from the public when that was revealed in 2009.

But at Wednesday’s meeting, participants weren’t evenly split on the issue. Most said they would like to see the city or residents retain some level of ownership in Burlington Telecom. One resident explained that, as a taxpayer, she would rather be able to use the asset than recoup the loss.

Residents Take Action

In late 2012, the Keep BT Local! Cooperative formed in an effort to maintain public ownership of the network. The co-op has been collecting equity and loan pledges with the long-term goal of obtaining approximately 4,000 residential and business membership pledges. The effort is ongoing and the group has said on their Facebook page that Members will be hearing more soon.

Sun Prairie Utilities' Pilot Project Shows Way to Better Connectivity

Welcome back to Sun Prairie, Wisconsin. This town has brought to light the shocking stories of slack service from incumbent providers, the complicated decisions of community representatives, and the hopeful beginning of a fiber-to-the-home (FTTH) network

The City Council has just approved $16,000 to hire an engineering consultant for the estimated $27-35 million citywide plan. 

In the Pilot Project, So Much Demand!

In July 2015, City Council approved the $624,000 plan for the pilot project, but several factors brought the actual cost up to about $653,000. The pilot project area included the neighborhood Smith's Crossing, the Main Street Corridor, and the TIF District 9 area. 

Sun Prairie Utilities first slated the project for completion in early December, but that underwent several delays. For instance, an over-booked contractor started on the project a month later than expected. Meanwhile, rocky soil conditions and high-demand slowed the pace of construction while raising costs. The Sun Prairie Utilities Manager Rick Wicklund will present the final costs for the pilot project this month. 

The original budget had assumed a 30 percent take-rate that would see a positive cash flow in three years. In actuality, 54 percent of households in the pilot project area are requesting the services.

Forty-three percent have requested the 100 Megabits per second (Mbps) for $49.98 each month while 11 percent want the higher-speed service of 250 Mbps for $69.98 each month. The capital expenditure of these unexpected last mile connections brought the cost up, but the extra revenue from these connections will certainly help offset those costs. 

Pilot Project Teaches Lessons

In building the pilot project, the city council sought to learn if a municipal citywide FTTH network would be possible. With the overwhelming demand for Internet service in the pilot project area, a citywide network may be in the cards for this community of 29,000. 

The recently hired consultant will help determine the feasibility, while the city utility department will apply lessons from the pilot project. The city utility will continue to capitalize on their successes of the pilot project. Their outreach strategy worked very well, ensuring the high take rate, as Wicklund explained

“We did a really good job of marketing and contacting everyone, having neighborhood meeting and getting everyone excited about it, that has a lot to do with the high take rate.”