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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.

Legal Eagles: Ammon FTTH Can Fly As Planned

Ammon now has judicial confirmation to move ahead on their Fiber-to-the-Home (FTTH) project.

As we reported earlier this year, Ammon's Fiber Optic Department, led by IT Director Bruce Patterson, is on the verge of commencing the next phase of its incremental network deployment. Bruce explained to Chris in Episode #173 of the Community Broadband Bits podcast, how the city will create a utility and residents who choose to participate will pay to have the network connected to their homes. The first area where FTTH will be deployed includes approximately 300 properties.

Innovative Participation Model

As Bruce put it:

"…[I]t seems logical that since fiber to your home raises your property value that we'd find some way to bond for that and put the payment for that bond as on assessment on your property tax because it does actually increase your property value so that's our goal. We do that with what they call a local improvement district."

Ammon intends to issue bonds that will then be paid with funds from assessments levied on the properties of those who wish to connect to the network. If a property owner wants to connect to the network, they will also become a "Utility Member" and will pay a monthly fee to use the service. Ammon's FTTH network will be open access; the city will not provide retail services but will maintain and operate the infrastructure. Residents will subscribe to the services offered by ISPs that operate over the network.

Ammon also intends to offer a low-cost option that will allow Utility Members to access basic functions, such as checking email, messaging, and file transfers without the need to subscribe to an ISP. Their plan will allow people in the community who cannot afford more advanced services to still have access to basic Internet tools.

In order to determine which neighborhoods want fiber, Ammon asks residents to sign up so they know where to aim the next build.

Sweet Validation

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As Ammon has developed their open access network from vision to achievement, they have taken several bold steps. The city won an award for its school emergency app, took over to connect local schools when the state educational network went dark, and experimented with partitioning fibers for multiple services. It's no surprise that Ammon's approach to financing was not typical.

As pioneers know, there can be something unexpected around the next tree. City officials chose to obtain validation from the state court prior to moving forward rather than risk investing time, money, and effort into an uncertain project.

On February 29th, District Judge Joel E. Tingey decreed that the city has the authority to construct, operate, and maintain the FTTH network under state law. He went on to state that their plan for financing under the Local Improvement District Act is authorized and that the bonds issued will be valid and enforceable.

Read the Judgement here and the Findings of Fact, Conclusions of Law, and Decree here.

Onward And Upward For Ammon...And Others?

Now that the state court has determined that Ammon has the authority to enter into this venture with this model, perhaps other communities will feel more confident forging ahead. While this ruling applies only to Ammon, we hope it will help reinforce innovative thinking in the "Gem State."

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.”

Sweet Sixteen: Waverly Utilities Hooks Up First Fiber Customers

This week in Waverly, Iowa, the local electric utility, Waverly Utilities, hooked up the first customers for its new Fiber-to-the-Home (FTTH) network. It’s been a long time coming for the town of 10,000 people. 

16 Years Ago: A Vision

The community first had the idea back in 2000 when they voted to form a municipal telecommunications utility after incumbent providers proved a letdown.  Reacting to the vote, those incumbent providers improved their networks a bit, so Waverly Utilities decided to hold off on building a fiber network. 

In 2013, residents and businesses found that the incumbent providers were again not providing necessary connectivity. Taking matters into their own hands, they pushed to create a new, publicly owned network. By 2015, the community had secured revenue bonds for the $12 million project.

Today: A Reality

Waverly Utilities already has 1,100 customers signed up to receive the service, and more homes and businesses will be connected over the next three months. By July 1st, Waverly Utilities’ network will be fully operational, delivering the next-generation connectivity that residents have long been waiting for.

For more about Waverly's project, take a few minutes to listen to Chris interview Mike Litterer, who was serving as Interim General Manager of Waverly Light and Power in 2013. He talked with Chris during Episode #53 of the Community Broadband Bits podcast.

It Takes a Village: Yellow Springs, Ohio Grassroots Group Wants Fiber

In the Village of Yellow Springs, Ohio, Springs-Net has created quite a stir among the 3,500 people. This grassroots group of villagers is advocating for a municipal network. Last year, they hosted a community Fiber Forum featuring our own Chris Mitchell. Now, they’re continuing the push for better home Internet access.

Springs-Net released a white paper on a possible municipal fiber network, bringing the results to the Village Council on February 16th. Although cautious of leaping into a large project, the Village Council recognized the benefits a network could have for the town and agreed to meet with the group in April to discuss next steps to improving connectivity.

Working From Home? Yellow Springs Says "Yes"

At the February 16th Village Council meeting, Scott Fife represented Springs-Net to provide an overview of the findings in the white paper. A retired Director of Information Technology at Centerville City Schools, Fife concentrated on information most relevant to the needs of the Yellow Springs community. 

According to Fife, over the last 15 years, the local business community has grown to include over 195 home-based businesses, an increase of 35%. In addition, the number of home-based engineering or scientific workers has increased 69% during the same period. Fiber connectivity could boost these existing businesses while attracting new ventures to the Village. 

As we've noted before on MuniNetworks, community networks can enable residents to work from home, avoid the commute, and increase family time. Much like Yellow Springs, Westminster, Maryland, wanted to improve Internet service for its citizens. The city decided to partner with a private company called Ting to build a community network. Now, some Westminster residents are able to telecommute rather than travel to their offices. With home-based productivity increasing in Yellow Springs, the village may indeed find a fiber network the best way to support this burgeoning aspect of the local economy.

Huge Benefit: Existing Assets

At the Village Council meeting, Fife also highlighted the community’s assets that will decrease costs and improve support if the village moves forward with a new network. The village already has the experience of a municipal electric utility, and a key component of the network - a data center - is available at the local nonprofit Miami Valley Educational Computer Association.

Many communities begin the process of building a fiber network through their municipal electric utilities: Pulaski, Tennessee; Hudson, Ohio; and Owensboro, Kentucky; are only a few. An existing electric utility facilitates a fiber network project because a community can draw on institutional knowledge. In the case of Yellow Springs, the utility already has access to the Right-of-Way and utility poles, both of which are vital for quick aerial deployment. Springs-Net has also been in communication with people at Sandy, Oregon, who built a network without the benefit of an electric utility.

What’s Next?

Currently, the group estimates the city would have to take out a $3 - 4 million revenue bond to pay for construction and there are other questions that need to be addressed. Council President Karen Wintrow summarized the situation:

“What you’re asking of Council and our staff is an incredible amount of work and financial support,”

Council member Judith Hempfling, however, reflected the optimism of the proposal, noting that the network could be a real asset to the village:

“If we could make this happen, it would be fantastic.”

In April, the Village Council will host a working meeting with the group to delve deeper into the possibility.

Holland, Michigan Pilot Project Could Lead to More

pilot project in the City of Holland, Michigan is now delivering gigabit speed Internet service via a dark fiber network built by the city more than two decades ago; three commercial buildings are connected. The project, led by the Holland Board of Public Works (HBPW), is the first phase in an effort to develop a municipally owned and operated fiber network.

Holland is home to about 33,500 people and situated on the shores of Lake Michigan. The community is known for its roots in Dutch culture and is a popular summer tourist destination. Windmills and tulips dot the landscape.

Daniel Morrison, the president of a software company in Holland and a member of a local public interest group called Holland Fiber, recognizes that businesses need fast, affordable, reliable connectivity:

“Our whole business is online,” he told the Holland Sentinel newspaper. “We’re working with clients all over the world and we want to be able to work as quickly as possible.”

Morrison’s company is a pilot tester. After the testing program began in January, Morrison Tweeted out a screen grab showing his Internet speeds:

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Pretty darn fast.

Toward a Municipal Network?

Pilot testing is set to last for three months to allow Holland’s Board of Public Works (BPW) to test out network technologies and solicit feedback from testers. All of the pilot testers are getting free fiber Internet service during the testing period.

Holland's BPW plans to apply their findings from the test toward a business plan for a municipal network for the entire service area. They will also use the business plan to support an application to the State of Michigan to become an authorized Internet Service Provider. BPW officials expect state regulators to respond to their application by the fall of 2016.

History of Holland’s Fiber Network

Holland first installed a 17 mile, 48-count fiber optic ring in 1992. It successfully facilitated a “smarter” power grid for the city, improving the reliability of various electrical facilities and equipment. In 2003, the city extended the fiber network to most of the school facilities in the local school districts.

Since the mid-1990s, the BPW has also provided limited wholesale Internet services to a small number of businesses that need high capacity data services. After expansion and extension of the network over the years, Holland now has 76 backbone miles of fiber, more than 150 total route miles, and fiber counts of up to 288 strands.

Envisioning a Better Future

Holland was one of the many cities across the country that tried unsuccessfully to lure Google Fiber to their town in 2010. After that disappointment, BPW released a “Broadband Strategic Plan” in 2011 in which they laid out their objectives for providing improved Internet service in Holland. That plan resulted in a recommendation to invest $58 million in a municipal Fiber-to-the-Home (FTTH) network. The Holland City Council never voted to adopt the plan.

Michigan has restrictions, but those state barriers apply when a community decides to invest in municipal Internet network infrastructure as was the case in Sebewaing. In those cases, a community can only build the network themselves if they receive fewer than three qualifying bids. Holland already has fiber in place.

The pilot project is an important step in developing a municipal fiber network in Holland. With the existing infrastructure already in place, the community can assert local authority over the development of a 21st century utility that will benefit the businesses, government services, and residents in this community for years to come.

Pulaski, Tennessee: "A Community Investing In Itself" With Better Connectivity

Pulaski, located in the area Tennesseans describe as the southern middle region of the state, has a fiber network other communities covet. When we contacted Wes Kelley, one of the people instrumental in establishing the network, he told us that the community always wanted to be more than "just Mayberry." Rather than settle for the sleepy, quaint, character of the fictional TV town, local leaders in Pulaski chose to invest in fiber infrastructure for businesses and residents.

A Legacy That Lives On

The county seat of Giles County, Pulaski has a long history of municipal utility service. The electric system was founded in 1891, and is the oldest in the state. The city also provides municipal water, sewer, and natural gas service. The electric utility, Pulaski Electric System (PES), serves most of Giles County, which amounts to approximately 15,000 customers. PES receives power from the Tennessee Valley Authority (TVA) and then distributes it throughout the county.

Pulaski is now known for its Fiber-to-the-Home (FTTH) network, PES Energize, but the city's first adventure in providing municipal Internet access began in 1993. The city developed dial-up service and within five years, 1,500 homes were using the service. The city abandoned the dial-up service to offer Wi-Fi but then sold that system to a private company.

Preparing PES

Leaders in Pulaski had their sights on connectivity beyond the limits of Wi-Fi. In 2002, Mayor Dan Speer and Dan Holcomb, the New CEO of PES, began exploring a publicly owned fiber network. Holcomb had previously lead a Michigan utility that offered cable TV and so used his experience to help establish the PES Energize network. AT&T (BellSouth at the time) provided DSL service and Charter offered cable Internet access but neither company performed to the satisfaction of the community. In fact, Pulaski had always suffered through poor quality service from its incumbents.

When Holcomb arrived, the community engaged a consultant for a feasibility study to examine in detail the idea of a publicly owned fiber network; Holcomb, Speer, and the rest of the city's leadership were not confident about the results. Before the community moved forward, Holcomb felt it was important they carry out a customer survey and a second feasibility study. In the spring of 2003, the organization undertook a survey and used the results to ready the utility to step into its approaching role as a municipal network utility.

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Ready For The Next Step

Two years later, city and utility leadership felt that they were ready and completed a second feasibility study. This time, the results suggested a better outcome if Pulaski decided to invest in a publicly owned fiber network. In the spring of 2005, Pulaski developed a business plan that was approved in March by Tennessee's State Comptroller, as required by state law. In May, the city council voted to issue $8.5 million in General Obligation (GO) bonds to finance FTTH deployment and a data center.

Kelley had worked on a similar project in Hillsdale, Michigan, and even though Holcomb had asked him to work on the Pulaski project, Kelley was reluctant. Hillsdale had not pursued a network and Kelley did not want another disappointment. Once Pulaski's utility board and city council backed the plan, he knew the project had the support to move forward. Kelley accepted a position as Chief Marketing Officer for the utility. (Kelley talks more about his experience in Pulaski, Hillsdale, and his current role in Columbia, Tennessee, in episode 189 of the Community Broadband Bits podcast. Check it out to learn more.)

GO bonds are not one of the three most used types of financing for municipal networks but Kelley explained why they worked well for Pulaski. When a community chooses to fund any project with GO bonds, investors have an added measure of safety because the project and the loan are backed by the full faith and credit of the community. In other words, the issuing jurisdiction can use its taxing authority to pay back the debt, if necessary. As a result, the municipality, county, or other government entity issuing the bonds obtain very low interest rates. GO bonds require that the project developed be owned by the community and funds are typically used for projects that will be used by the entire community.

People Grow The Asset

Construction started in 2006, with fiber following the path of the existing power lines - when the lines were aerial, the fiber was installed on poles and when lines went underground, the new network followed suit. PES took the same approach with street lines and drops to homes. Line construction was completed in September 2006; the utility finished its Network Operations Center in November, and began testing right away. 

PES Energize began offering residential triple-play of cable TV, phone, and high-speed Internet services in January 2007 but its formal launch was not until the spring of 2007. When the network launched, it offered services at download speeds of 5 Megabits per second (Mbps), 10 Mbps, and 20 Mbps. Since then, speeds have increased. High-speed Internet access, video, and telephone are available in a variety of bundles or subscribers can purchase stand-alone Internet access for $35.95 (25 Mbps download / 5 Mbps upload), $75.95 (50 Mbps download / 7 Mbps upload), or $100.00 (100 Mbps download / 10 Mbps upload) per month.

By the time Wes Kelley left for his new position as Executive Director of Columbia Power and Water in 2012, PES Energize had achieved a 45 percent take rate. According to Mike Hollis, in charge of sales for PES Energize, the utility expands the network incrementally every year. By the end of January 2016, the network passed 5,609 homes and businesses. The utility's take rate is just under 49 percent in total with 2,729 of those properties passed subscribing to PES Energize.

According to Hollis, customers in rural areas are speeding up the expansions by footing the bill themselves. In PES' electric service area beyond the current network footprint, residents and business owners have approached the utility to ask for an estimate on the cost of expansion to their neighborhood. PES provides a figure for materials and pole attachment costs. Increasingly, these small pockets of rural neighborhoods, with nothing but dial-up or satellite, will chip in to pay for the construction. The neighborhood group cuts a check and the utility expands the network to that area.

Hollis noted that a local realtor is organizing the most recent example of a would-be subscriber funded expansion. He can't sell houses in his neighborhood where there is no high quality Internet access; homebuyers don't want houses with dial-up or satellite. He and his neighbors see the move as a necessary investment so he is leading the effort to obtain contributions from people in the neighborhood to pay for the fiber expansion.

Businesses In Mind

When PES launched, it also offered dark fiber leasing for organizations that wished to manage their own data needs. Most businesses in Pulaski purchase lit services and/or use the utility's data center. The facility housed a colocation facility, hosting services, and offsite data storage and was designed to withstand an F5 tornado.

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In 2011, Speers, who had transitioned from Mayor to Executive Director of the Pualski-Giles County Economic Development Council, discussed how the network had improved functionality for local businesses in an interview with Craig Settles. Whether a local printer sending artwork to Los Angeles or a graphic artist sending catalogue material to Canada, Pulaski businesses heaved a sigh of relief when they tapped into PES Energize. Businesses today overwhelmingly choose PES Energize - 82 percent of those passed subscribe.

From the interview:

"The golden rule of economic development is, take care of what you got. Take care of your existing industry first. There’s no question they will use it. If you’re lucky enough to get an industry to come in because they need the broadband, then that’s gravy.

During this current economic downturn, we’ve focused a lot of attention on our existing retail base and entrepreneur development. We’re teaching businesses how to maximize their use of the network so they can broaden their customer base nationally through the Internet. Our philosophy is to tie in the use of technology to help the businesses we have."

Looking At The Long Term

Pulaski has not experienced significant population growth since investing in PES Energize, but it has managed to avoid decline, a problem gripping similarly sized communities in the region. Tullahoma is a little over an hour away, Columbia is less than 45 minutes north; both communities offer potential employers municipal fiber connectivity. Pulaski made the investment first and can still compete for economic development opportunities in a peaceful setting.

When new businesses look for a location to open a facility where high-speed connectivity is a must, and search for a "Mayberry" to attract a quality workforce, Pulaski is on the short list because of its municipal fiber network.

Wes Kelley recognizes the long-term value of Pulaski's decision to create Internet network infrastructure. When we spoke with him for this article he reinforced what local officials and their constituents all over tell us - that the people of Pulaski knew the best course for themselves:

"It's a community investing in itself. Pulaski spent $8.5 million. They could have spent $8.5 million building a new rec center and a new pool but they didn't. They decided to put it in the air and in the ground to provide telecommunications infrastructure for the next 40 years. I think that's a powerful decision but it is a local decision…local control is critically important."

Exploring the Huntsville Fiber Model - Community Broadband Bits Podcast 191

Last week, we were excited at the announcement from Huntsville Utilities in Alabama. Huntsville is building a municipal dark fiber network to every premise in its territory that will be open to multiple service providers. Google has already committed to using it to bring real connectivity to the community.

In this week's episode, 191, we are talking with Tom Reiman and Stacy Cantrell to understand the model. Tom is President of The Broadband Group, the consultant that is working with Huntsville on this project. Stacy Cantrell is the Vice President of Engineering for Huntsville Utilities.

We talk about how the model originated, some of the technical details behind the network, and what benefits they expect to see. This is an excellent discussion with many implications for the thousands of communities that want to improve Internet access locally but would prefer not to offer services directly.

The transcript from this episode is available here.

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

This show is 33 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

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

Thanks to Kathleen Martin for the music, licensed using Creative Commons. The song is "Player vs. Player."

Ammon, Idaho Preparing for FTTH Expansion

Officials in the City of Ammon, Idaho, are moving closer to expanding their municipal network to residents with a Fiber-to-the-Home (FTTH) network. The FTTH expansion is the latest phase in their incremental approach in this community of 14,500 people in the southeast corner of Idaho.

Ammon’s Director of IT, Bruce Patterson, told us the history of the network’s development in a 2014 Community Broadband Bits Podcast. After starting the network several years ago with just a single link between two municipal buildings, the network gradually expanded the network to community anchor institutions. They also decided to serve businesses on a case-by-case basis. Since the beginning, the city kept its eye on its goal: to offer fiber access to every home in Ammon.

Ammon's FTTH Expansion Process

Ammon officials are acting prudently to gauge customer demand and wait for the necessary funding mechanisms to fall into place prior to additional construction. As we reported in August 2015, officials are asking residents to submit an online form to express their intent to sign up for service. City officials also held meetings with residents in September and October to explain the proposed expansion plans and give residents a chance to test out the gigabit speed service.

The city plans to extend residential service one large neighborhood at a time, letting customer demand dictate the direction of the expansion. The city will pay for the expansion entirely through service commitments from residents who choose to have a fiber connection extended to their home. This method will allow the city to expand without contributions from non-subscribers.

Patterson told us that the city is currently in the process of getting legal approval to bond on the FTTH expansion phase. He said he is confident the city will soon be approved for the bonding and anticipates that they will be able to put a shovel in the ground by May or June of this year.

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What Will Residents Pay?

Ultimately, the exact price of getting an FTTH connection in Ammon will depend on how many people sign up; the more residents who sign up, the lower the prices will be. Details are still being hammered out, but Patterson gave us an estimate of what the city has in mind.

First, the city will secure a bond to pay for the expansion construction process. The city will then ask residents who want fiber connections to their homes to pay a fee that will go toward paying off the bond. The connected resident could pay this connection fee over a 20-year period as a property tax assessment of about $15 monthly. As Patterson told Chris in their most recent podcast interview:

"...[I]n terms of the financing for it, it seems logical that since fiber to your home raises your property value that we'd find some way to bond for that and put the payment for that bond as on assessment on your property tax because it does actually increase your property value so that's our goal. We do that with what they call a local improvement district."

In addition, the resident would pay a utility service fee to the city for operations and maintenance costs of the network estimated between $15-$25. Finally, the resident would pay a service fee to one of multiple ISPs that would provide service over the open access network.  

Patterson estimates the total cost to a subscriber for a 100 megabit per second (Mbps) symmetrical connection would initially be about $60 monthly, similar to the price that Ammon residents currently pay for slower and less reliable connections from incumbent ISPs.

“I tell people they’ll be getting better service at about the same prices that are currently available for residential service in Ammon,” Patterson said.

The Ammon Model

Patterson created a new model for the network in Ammon called an Open Access Virtual Infrastructure (OAVI).  According to a white paper describing how the model works, Ammon’s OAVI model allows consumers greater choice and control than traditional open access network models.

For example, a customer who’s unhappy with their ISP or their service package for whatever reason in Ammon will be able to visit the network website and quickly select a new ISP or make service changes from a highly customizable set of options. Patterson believes additional benefits of this OAVI model will emerge in future years as Internet service evolves.

More details about the unique Ammon model are also available in our Community Broadband Bits podcast #173 from October. There, you’ll hear Chris talk to Patterson and Ty Ashcroft, Ammon's Systems Network Administrator, about some of the unique freedoms this business model affords end users.

Muni Network in Huntsville Draws Google Fiber

Huntsville Utilities and Google Fiber announced today that the utility will construct a dark fiber network and that Google Fiber will offer services to the community via the city's new fiber infrastructure investment.

We applaud Huntsville and Google for helping develop an innovative model that will create more choices for local businesses and residents. We believe this is an important step that can lead to a true market for Internet access, allowing people a real choice in providers while ensuring the network is accountable to local needs.

Next Century Cities (NCC) describes the arrangement as a "promising new model for ensuring greater access to high-quality broadband Internet." We see this as a significant step forward in creating competition and bringing high quality Internet access to every one. For many years, we have seen communities desire to invest in infrastructure but not have to engage in service competition with powerful rivals like Comcast or AT&T.

Huntsville Is Different

Google Fiber is already known for bringing affordable gigabit service to subscribers in Kansas City and Provo, Utah and they have plans to expand in a number of other communities. Huntsville will be more than "just another" Google Fiber community because the infrastructure will belong to the community.

Other providers will be able to offer services via the network as well, ensuring more competition and providing choice for residents and businesses. Smaller providers will have an easier time establishing themselves in Huntsville with infrastructure in place on which to offer services. If subscribers are not happy with one provider, there is a good chance that there will be other options.

In Kansas City or Provo where Google owns the fiber network, the company ultimately decides where to expand. Here the Huntsville community can decide where to build the network. The utility will blanket the community in fiber, rather than building only in areas that have signed up a minimum threshold of subscribers. Because Google is not footing the capital bill, they will now have every incentive to encourage local leaders to make sure no one is left out.

Details

The city is deploying fiber for smart grid purposes and have chosen to lease out spare capacity to improve local connectivity. The dark fiber network will pass everyone but the city is not putting in the drops. The ISP, whether Google or another, will pay for and own the drop as well as the ONT to connect each premise. They will make ongoing payments to the utility for access to the rest of the network.

The utility estimates the project will cost around $55-$60 million reports AL.com:

"We are building the network for our own purposes," utility President and CEO Jay Stowe said in an interview. "It's going to have excess fiber that's available for lease, and Google will be the first company to lease that fiber."

Under the plan, Huntsville Utilities will own the system's fiber backbone, and Google will own the power line-to-home connections, handle all hookups and provide the services.

WHNT 19 News reports:

They [Huntsville Utilities] see it as a low-risk investment, as compared to administering the gigabit internet themselves, which would require a massive increase in personnel in an arena where they have limited expertise.

[Huntsville Utilities President and CEO Jay] Stowe says not only will consumers not see the infrastructure costs on their bills, they may see the outlay lowering their bills in the long run. "This project helps us to have other revenue streams that may help us manage rates even more in the future.”

The city and Google Fiber anticipate first subscribers will be connected by mid-2017 and project will be completed by 2020.

Highly Logical

The "Rocket City," home to approximately 180,000 people, began searching for a company to help them improve local connectivity back in 2014. The Mayor and his team have been working on the project for the past seven years. Huntsville is home to NASA's Marshall Space Flight Center; significant number of engineers and STEM industry graduates live and work there.

It was no surprise when the public expressed an interest in improving local connectivity in an informal 2014 survey. The closeness of Chattanooga's world-famous EPB Fiber network has also threatened Huntsville's business prospects. Local leaders don't want to lose economic development potential to other municipalities that have the connectivity employers need.

Lift Off!

Since the 1950s, when the U.S. Army began developing missiles there, Hunstville has attracted a smart, science, tech focused work force. In order to keep their workforce and their intelligent reputation, fast, affordable, reliable connectivity is a must:

"We already know Huntsville is a place where people do cool things, smart things, things that change the world," said Mayor Battle. "A rocket city deserves rocket speed, and that means a network that connects to the Internet at 1 gigabit per second. Your Internet will be 50 to 100 times faster than it is today." 

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