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More Details on the Northwest Open Access Network - Community Broadband Bits Episode 164

Just a few short weeks ago, we interviewed Dave Spencer, the Chief Operating Officer for the Northwest Open Access Network (NoaNet) in Washington. We offered a good overview, but got some requests for more details so Dave returns this week for a more focused discussion in episode 164.

We discuss the specific services that are available and how the retail service providers access them as well as NoaNet's enlightening approach to peering so its service providers have the benefits of low cost, high quality Netflix videos, as an example.

We also discuss the legal status of NoaNet as a nonprofit municipal organization. Finally, we discuss the other services that NoaNet makes available and how some of the fees are structured.

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

This show is 23 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."

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.

SandyNet Now Offering Gigabit FTTH in Oregon

Back in September, SandyNet announced that its FTTH gigabit network was officially up and running. The utility will continue to expand and eventually bring the network to all 4,000 households. Light Reading recently spoke with Joe Knapp, Sandy's IT Director and general manager of the broadband utility about the new offering. With a population of 10,000, Sandy is in Oregon between Portland and Mount Hood.

The network is completely underground. Sandy is one of many communities that have developed smart conduit policies, reducing the cost and preparing the environment for deployment over a period of years.

You can listen to our discussion with Knapp on Sandy's conduit policy in Episode 17 of the Community Broadband Bits podcast. We also spoke with City Manager Scott Lazenby about Sandy's conduit policies during Episode 48.

Like many other communities we study, Sandy invested in connectivity out of necessity. Knapp told Light Reading:

"We started out because we couldn't get a DSL line at city hall," says Joe Knapp, IT director for the City of Sandy and general manager of SandyNet. The utility first built a 900MHz wireless network, then WiFi, then a wireless mesh network to connect residents to broadband, he says. "That became so popular that we took about 40% of the market with wireless, but that was a hard thing to sustain."

The journey to FTTH was not an easy one:

"We started to realize that a lot of communities are doing this," Knapp says. "It took three years of beating my head against the wall to finally get it to happen."

Gigabit speeds are something to boast about, but Knapp says SandyNet will not go to extremes to push them:

"As a muni network, we view this as trying to benefit the community. I tell them to try the 100-Meg service first -- we're actually not pushing the gig that hard."

Pricing for gigabit service is $59.95 per month; 100 Mbps service is $39.95 per month. All speeds are symmetrical and there are no caps or contracts.

LightTUBe Lowers the Price of a Gig; Increases Speeds for Free AGAIN

The Tullahoma Utilities Board (TUB) began offering gigabit service in 2013 through its municipal FTTH network, LightTUBe. In a recent press release the TUB announced it has lowered the price of residential gig service to $99.95 per month

In addition to slashing the price for the highest tier, TUB increased all other Internet speeds at no additional cost. This is the sixth time since its 2008 deployment that LightTUBe customers have enjoyed a free speed increase. From the LightTUBe website:

New LightTUBe Prices

Brian Skelton, TUB General Manager, said in the press release:

“We’ve grown our Internet business in such a way that we can offer Gigabit speeds at a more affordable price.” 

Skelton has said in the past that the decision to offer Gigabit Internet was an easy one. 

“We want to make Tullahoma a much more desirable location for technology companies to locate, due to our ultra-high speed Internet and our highly skilled workforce,” he explained in spring of 2013. “Tullahoma is light-years ahead of most cities in the United States with the ability to offer these incredibly fast Internet speeds.”

LightTUBe has brought jobs to the community, increased the efficiency of the electric utility through a smart metering program, and implemented a "TV Everywhere" option for customers. Even thought the network is restricted by state law, it has remained financially stable while keeping rates in check.

LPC Residential Gig Service in Longmont Has A New Name; Available November 3rd

Big changes are happening in Longmont as the LPC builds out its network expansion. In addition to new services and new pricing, LPC for residents has a new name - NextLight. At a recent city council meeting, LPC announced that a number of residents in south central Longmont will be able to enroll for NextLight services as soon as November 3rd.

Homeowners who sign up within the first three months that service is available in their area, will get 1 Gbps symmetrical service for about $50 per month or half the regular residential price. Those customers, considered Charter Members, will keep the introductory price as long as they keep their service and will take that rate to their new home while also reserving that rate for the home they leave. The Times Call reports:

And if a homeowner does not sign up in the first three months, they could still obtain a customer loyalty price after one year, knocking the regular price down from $100 a month to $60 a month.

The city will also offer a lesser speed of 25 megabits per second for both uploading and downloading for about $40 a month and that price is not discounted for charter members or 1-year-members.

 At the meeting, LPC Director Thomas Roiniotis explained the reason for the new brand:

NextLight was named with Longmont's original municipal electricity utility that the city acquired in 1912 in mind.

"What we're saying is now, today, with the same type of community support, we're building a network that uses beams of light to transmit information," Roiniotis said Monday.

Free High-Speed Internet Coming to North Kansas City, Missouri

Last year we reported on a deal between Google Fiber and North Kansas City. The provider entered into a long-term lease to use LiNKCity dark fiber to incorporate into its area deployment. The City recently announced it will now enter into a public-private partnership with DataShack to bring fiber to local businesses and residents. Residents will receive free high-speed access. From the City's announcement:

The partnership between these two companies will enable residents to experience Gigabit speeds for FREE. On January 1st, 2015 all existing residential customers will be upgraded to free monthly 100 mb internet service. New customers after January 1st will have the opportunity to choose between three service options; free monthly gigabit internet service with a $300 installation fee, free monthly 100 mb internet service with a $100 installation fee, or free 50 mb internet service with a $50 installation fee.

A Kansas City Biz Journal article reports that North Kansas City will retain ownership of the infrastructure and DataShack will bring free gigabit Internet service to the public library, city churches, and all public schools. Profits and losses will be shared equally but the City's losses are capped at $150,000, including the capital investment. DataShack will operate and maintain the network.

"It's a win-win for the city," said Byron McDaniel, the city's communications utility director. "It's really giving back to the community what they've invested into the network."

According to the Kansas City Star, the network has a lot of business customers, which is the core of DataShack's strategy:

Today, liNKCity has about 460 business customers in North Kansas City who pay anywhere from $80 to $500 a month for high-speed connections. DataShack plans to keep business rates the same while cranking up speeds.

About 440 residential customers currently buy hookups from liNKCity. Brown said he expects the free service to make that number double or triple.

Frankly, we don't yet understand this business model but as we learn more, we'll write about it. LiNKCity has always been an odd network as it was funded with revenues from a casino, which seemed to change the incentives for how quickly it was expected to break even and pay for itself financially.

Spencer Municipal Utilities Expands Upgrade to Fiber in Iowa

Spencer Municipal Utilities (SMU) in Iowa is expanding an upgrade project to bring fiber to approximately 2,000 additional premises. A little over a year ago, we reported on the switch from coax cable to fiber for 700 municipal network customers with no rate increase. According to the Spencer Daily Reporter, the original project is almost completed; the expanded upgrade will cost approximately $4.5 million.

Amanda Gloyd, marketing and community relations manager, told the Daily Reporter:

Since SMU first began offering Internet service to customers the amount used by customers has increased and we expect to see that continue. For example, the average peak usage from customers in the fall of 2010 was 125MB and today it averages around 800MB with maximums over 1,200 MB. The project to convert the whole town of Spencer will take several years and we continue to develop plans for future projects.

In April, the SMU Board of trustees approved a modest rate increase for video and Internet access to help defray increased costs for video content and increased demand on the system. The last time rates went up for video service was early 2013; residential Internet access rates have remained the same since November 2011.

New rates went into effect on June 1. Internet access rates range from $20 per month for 1 Mbps/256 Kbps to $225 per month for 100 Mbps/10 Mbps. Basic level video service begins at $14 per month; "Basic Plus" is $50.75 per month. Digital service and a range of channel choices are available as add-ons.

SMU also provides voice and partners with T-Mobile to provide wireless phone service in the community. The network began serving customers in 2000.

Spencer, population 11,300, is located in the northwest section of the state. In the Community Broadband Bits podcast episode #13, Chris spoke with Curtis Dean of the Iowa Association of Municipal Utilities (IAMU). Dean shared a story about Hansen's Clothing, a local upscale clothier in Spencer. Thanks to the presence of the SMU network, Hansen's was able to expand its sales to the online marketplace. Hansen's was struggling until it obtained the ability to reach clientele in New York and Los Angeles. The fresh business allowed Hansen's to flourish.

Fibrant Signs Up 3,000th Customer, Increases Top Speed to Gig With No Rate Hike

Salisbury's Fibrant network recently signed on its 3,000th customer, reports WCNC from Charlotte. The publicly owned network also recently increased speeds for residential customers with no price hikes, reports BBP Mag. Households that were signed up for symmetrical 100 Mbps service for $105 per month will now have gigabit service for the same rate.

BBP Mag spoke with Dale Gibson, one of Fibrant's first gigabit customers:

“Generally when an Internet service provider gives a speed, it represents bandwidth, or a theoretical 'best effort' speed, not the 'throughput' or actual speed. My speed tests are consistently above 900 Mbps.” A network professional for over 20 years, Gibson added that typically even in the best test conditions, it is more common to see numbers in the 800s and, “Fibrant should be very proud of that 900 number.”

Other speed hikes include:

20/20 Mbps for $45 per month raised to 50/50 Mbps

30/30 Mbps for $65 per month raised to 75/75 Mbps

50/50 Mbps for $85 per month raised to 100/100 Mbps

The network has also revamped its video packages to include more channels, new HD options, and remote DVR. For a complete overview of Fibrant's new packages, visit their pricing page.

High Speed in the Blue Grass State: Russellville's Gig

The Logan Journal recently reported that the Russellville Electric Plant Board (EPB) now offers gigabit service to local businesses. The article notes that Net Index, an online tool to measure download and upload speeds, recognizes EPB as the first Gig city in Kentucky. To learn more about the community and its network, we talked with Robert White, General Manager of EPB.

The community of 7,000 is the county seat of south central's Logan County. Russellville is located in the center of several other larger communities: Nashville, Bowling Green, Hopkinsville, and Clarksville, Tennessee. Manufacturing has been a large part of the local economy for generations, but community leaders recognize the vulnerability of a narrow economic base. In order to encourage a versatile economy, Russellville invested in its telecommunications utility.

The community wants to encourage small business while simultaneously providing manufacturers the connectivity they need. Leadership sees the ability to remain competitive directly tied to their network. In addition to the economic development opportunities a fiber network can provide, communities like Russellville rely on electricity revenue from large consumers. Retaining the large electric consumers that also provide jobs in the community is a must.

Russellville's electric utility created a strong advantage when it was time to venture into telecommunications. EPB had already established a strong relationship with its Russellville customers, says White, and locals felt they could trust their municipal electric provider.

EPB began offering wireless Internet to the community in 2005; at the time, there was very little choice for wireless or wired Internet. The product was competitively priced and it performed well for wireless service at the time but EPB eventually shifted focus to its next generation high-speed network. The wireless service is still available to customers who subscribed prior to the construction of the fiber network but EPB no longer offers it to new customers. Wireless speeds vary from 1-2 Mbps download and approximately 500 Mbps upload. The area now has several options from the private sector - Verizon and Bluegrass Cellular provide wireless up up to 10 - 15 Mbps.

Russellville EPB Logo

According to White, Russellville's inspiration to build the network was not to compete, but to fill the services gap. He told us:

"We support Logan County residents having the best product. If that means us offering the product, that's fine. If it means the private sector will step up to the plate and serve the areas we can't serve…that's fine as well. We want our residents to be served, whether by us or an incumbent."

Larry Wilcutt, White's predecessor at EPB, began studying the possibility of a fiber network in 2007, but external forces motivated Wilcutt and EPB to seriously pursue the project a few years later.

In early 2010, EPB learned that its power supplier, the Tennessee Valley Authority (TVA), would switch to time-of-use wholesale rates and begin using smart grid technology by 2012. In order to participate in the new technology, EPB needed meters that could communicate with its electrical system operations. EPB installed fiber optics for Advanced Metering Infrastructure (AMI) and for future expansion into telecommunications. A News-Democrat & Leader article from October, 2010 (reprinted at MobilityTechZone.com) reported:

The EPB's goal is to eventually install fiber optic cable to every home and business in Russellville, is installing the cable to every home in the Russellville, city limits -- even those that are serviced by other electricity providers. There are also plans to include some locations outside of the city limits to extend service to the more populated areas adjacent to the city limits of Russellville. 

The article quoted Wilcutt:

"The Board has been working on this project for over two years and we are extremely excited to finally start construction on this project. We want to provide the citizens of Russellville with a system that is second to none, one they will be proud of, one that will entice new investment in the community. Whether that new investment is in the form of capital, technology or people, we believe the City of Russellville and Logan County will benefit well into the future" Wilcutt said.

AT&T Logo

At the time, the best connectivity in Russellville was AT&T's DSL at 6 Mbps download. Satellite Internet was available but was unreliable, expensive, and maximum speeds were 1 - 2 Mbps download.

The community was also starved for quality video service. Suddenlink did not offer HD channels and made it clear that HD service was not planned for Russellville. Large corporate providers had no interest in Russellville so EPB felt it was time to take control of their own connectivity.

Construction of the 99% aerial, 120-mile network began in October 2010; EPB began offering services in December 2011. White presented the results of an audit in November 2013 to the City Council showing that 8% of EPB's total revenue came from its broadband division. The audit also showed that the network was ahead of its projected take-rate with 1,300 active subscriptions out of 4,000 passed homes. 

The network capital costs were approximately $11 million with approximately two-thirds designated for electrical system expenditures. In 2010, the American Recovery and Reinvestment Act (ARRA) offered Build America Bonds (BABs), some of which provide federal subsidies to help communities pay back interest to bondholders. BABs, backed by electric system revenue, provided funding for the entire project and contributed to interest expenses.

EPB offers services to every home and business in its service area and hopes to expand further. They expected video to be the lead product, but  Internet service is the most popular. White considers the lack of high-speed Internet in the region the driving force. The commercial gigabit product is new and no customers subscribe yet but local businesses take advantage of the fiber network. One local contractor tells White he enjoys the ability to share documents and bid for projects online without fear of technical glitches. When he used unreliable DSL connections to transmit data, he was perpetually concerned about deadlines and the status of data sent via DSL.

Local public safety agencies, the local library, Russellville City government, and Russellville Independent Schools now use the network. EPB and the Logan County Schools may soon be working together.

Word of Mouth graphic

In addition to providing much needed connectivity to the community, the network provides an increased stream of revenue. EPB submits a payment in lieu of taxes (PILoT) to county and city governments based on electrical and broadband services revenue. As EPB gains customers transitioning away from satellite video service, its contribution to the City increases; satellite providers do not pay a franchise fee to Russellville. At a July 2010 City Council meeting, EPB expected broadband services to add approximately $25,000 in PILoT within the first five years. EPB also pays a separate and voluntary video franchise fee to the local municipality. 

These days, White and EPB are concentrating on raising awareness of the commercial gig product and service to residents. To spread the word, EPB holds regular workshops for the community to explore ways to maximize the the network's possibilities. Commercial gig service is available for $1,499.95 per month.

White and the EPB understand that the private sector must make decisions based on returns. In the case of this publicly owned network, some key returns take the form of benefits to the community. Since EPB lit its network, White and his crew often hear from customers who rave about their service. White says:

"They hate to pay electric bills but they say getting superior broadband services from EPB is all worth it."

EPB's residential fiber Internet services begin at 20/5 Mbps for $39.95 per month with higher speeds at 100/25 Mbps for $69.95 per month. Video services from EPB range from $29.95 per month to $62.95 per month with the option to add over 100 HD channels. Voice packages start at $14.95 per month.

For Chris' recent interview with White, check out episode #82 of the Broadband Bits podcast. 

Central Missouri Coop To Offer Gigabit, Upgrades Speeds With No Price Increase

Residential customers of Co-Mo Connect in Missouri will see a free upgrade this spring. In a December announcement, the cooperative stated it will also begin offering gigabit Internet service for $99.95 per month.

“There are no strings attached,” said Randy Klindt, Co-Mo Comm's general manager. “We’re doing this because we can, because the network has the capacity and we received a good deal on bandwidth. We’re passing those speeds and savings onto our subscribers.”

New residential service options:

  • 5 megabits per second for $39.95 a month; 
  • 35 mbps (currently 20 mbps) for $49.95 a month; 
  • 100 mbps (currently 50 mbps) for $59.95 a month;
  • 1 gbps (currently 100mbps) for $99.95 a month.

According to the announcement, small businesses will also receive speed increases with no increase in price. Klindt notes that Co-Mo prides itself on gimmick-free pricing:

“Nothing is going to decrease after six months or whatever the other companies do,” he said. “And subscribers don’t have to do anything to get the extra speed. If you’re on the 20, 50 or 100 megabit tier right now, we’re simply going to turn up your speed when this becomes available sometime this coming spring.”

We reported on Co-Mo in 2012, as the cooperative began expansion of services. At the time, Co-Mo had been passed over for American Recovery and Reinvestment Act (ARRA) funding. Coop members wanted to improve the broadband situation for better economic opportunity so Co-Mo pressed on without federal funding. The plan to bring FTTH to all 25,000 coop members has four phases with completion scheduled for 2016.