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In West Texas, "Hub City" Conducts Fiber Feasibility Study

A feasibility study conducted by the Lubbock Power & Light (LP&L) Electric Utility Board this April discussed several potential benefits of installing a fiber optic cable in the City of Lubbock, Texas. Charles Dunn, a member of the Utility Board, proposed installing fiber optic cables alongside the city’s utility lines, which are currently being buried underground as part of a three-phase, $1.9 million downtown redevelopment initiative

A fiber optic cable, Dunn contended, could increase Internet speeds hundredfold (from a max speed of around 10 Mbps to one above 1 Gbps), attract high tech companies to the city, and induce Texas Tech University students to stay in Lubbock after they graduate. In Lubbock, where Internet speeds run about 35 percent slower than they do in the rest of the state, a fiber network could be a boon for businesses and residents alike.

According to the April feasibility study, the fiber project might not even eclipse $100,000. LP&L would shoulder the costs of the project by drawing from its own budget. Both Dunn and LP&L director of electric utilities, David McCalla, believe that fiber would greatly benefit the community.

CEO of McDougal Companies, Marc McDougal, also argued in favor of the installation of the cable. From Fox 34 News:

Quite honestly, it would give us something that very few cities have... It would give us a huge advantage in another market to recruit businesses for downtown Lubbock. 

If plans to build the network were to move forward in Lubbock, LP&L would not be able to immediately offer Internet access to customers because of state law discouraging municipalities from offering telecommunications service. Though a Texas Utilities Code prohibits municipalities from offering telecommunications services to the public, that restriction does not appear to apply to Internet service (which is why AT&T a decade ago unsuccessfully tried to explicitly revise the barrier to include Internet access). The municipality would almost certainly have to defend its interpretation of the law in court, work with a private provider to offer services, or petition the FCC to overturn the current state law

While many municipal networks are located in smaller towns and rural areas, Lubbock seems to be an ideal mid-sized city for a high-speed municipal fiber network. Nicknamed the “hub city” on account of the key economic and educational role it plays in the South Plains region of West Texas, a foray into fiber optics has the potential to turn Lubbock into a hub for local self-reliance, as well.

From FOX 34

EPB Fiber Keeps Electric Rates in Check

For the first time in four years, EPB is asking its board of directors to approve a rate increase for electric power charges, reports the Chattanoogan. According to EPB, revenue from the Fiber Optic division has kept electric power prices in check for the past four years.

Price increases are always a frustration for residents and businesses, but this is actually another example of how the entire community, even those who may not subscribe to EPB's fiber network, have beneifted via reduced energy rates. We wrote about this last in 2012.

According to the article, several years of deadly storms have caused damage that have increased the average cost of cleanup from $2 million per year to $6 million per year. Additionally:

Officials said this rate increase "is driven by a continuing trend over several years of higher-than-normal costs associated with the greater frequency of devastating storms and by large peak energy demand charges that EPB pays to TVA for power generation.  These demand charges are not covered by regular power sales during months with extreme fluctuations in temperature, particularly when there are a few days of extreme temperatures and the rest of the month is much milder."

The article also notes that the fiber optic division has made $13.4 million over the past fiscal year. Debt from the investment made to offer telephone services is expected to be paid off this June.

[EPB CEO Harold] DePriest  said it was "the best investment we ever made."

Decorah, Iowa, Considers the Future of MetroNet

Decorah, named an "All-Star Community" in part due to benefits from their internal fiber network, is now exploring new ways to utilize MetroNet. According to a recent Decorah Newspapers article, the six community anchor institutions (CAIs) that collaborated to deploy the network recently met with the city council to discuss the future.

The 11-mile network began serving CAIs and an additional 18 facilities in 2013. After a 2008 flood that knocked out communications, the city, county, and school district began planning for the network. Eventually, the project grew to include Luther College, the Upper Explorerland Regional Planning Commission, and the Winneshiek Medical Center. BTOP funds paid for much of the approximate $1 million deployment but contributions from participants supplied an additional $450,000.

According to the article, MetroNet supplies each institution with its own fiber, leaving plenty to spare. Decorah City Manager and Chair of the MetroNet Board Craig Bird says that the network has a "vast amount" of dark fiber available that is not being used. Members of the community have approached the Board about using the fiber for better connectivity beyond current uses:

Bird said the MetroNet Board has to decide how to respond to a grassroots petition committee of citizens “demanding access to the MetroNet and faster broadband speeds and fiber capacities” for Internet access to private homes and businesses.

“The MetroNet Board is now starting to look at the future and what the MetroNet holds for the six anchor members, but also for the community,” he told the Councils.

At the city council meeting, Bird discussed the possibility of creating a municipal Internet utility, creating a cooperative, forming a nonprofit, or leaving MetroNet as a service for the existing members and facilities. They also considered the option of leasing dark fiber to private providers.

Bird also told the council that the MetroNet Board has agreed to participate in a regional feasibility study to include northeast Iowa. The Iowa Association of Municipal Utilities has commission the study that will include a number of towns:

“The feasibility study is going to look at a lot of things. Basically, what our current capacities are and what assets we already have. We know what the MetroNet has, we know what (the other communities have), what impact does that have for Northeast Iowa and what would it take to connect these existing infrastructures together so that we can take advantage of the traditional economies of scale for purchasing. Some of these communities are already purchasing video. They’re competing directly with Mediacom,” Bird told Decorah Newspapers.

“Part of the feasibility study is how can we collectively come together and do that same thing with larger volume and more efficiency. There is power in numbers – not just for video, but for the triple play as it’s called in the industry – video, voice and data (television, phone and Internet),” Bird said. 

Waverly will also be included in the study. The town of 10,000 is commencing deployment of its municipal gigabit fiber network and expects to be serving the community in 2016. Whether Decorah follows the same path remains to be seen:

Bird said the process of determining the MetroNet’s future is just starting.

“It needs more discussion – there’s no question on that,” Mayor Don Arendt said.

“We can make a better decision once we know if forming a utility is what is best for us and what the other entities want to do,” Niess said.

Waverly: The Next Gigabit Community in Iowa

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

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

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

From the WLP press release:

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

Rural Electric Co-Mo Coop Goes Gig - Community Broadband Bits Episode 140

As high quality Internet has become more essential for business and quality of life, those who realized that the existing telecom providers had no intention to invest in better connections in their rural Missouri communities began to ask their electric cooperative - Co-Mo - to step up and do it.

This week, we talk with Randy Klindt, General Manager of Co-Mo Connect, which is building a gigabit fiber network out to its members despite having not been chosen to receive any stimulus funds.

We discuss how they have structured the network, why they felt compelled to get into the business, and some of the results from their approach.

Read the transcript from our discussion here.

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

This show is 20 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

Listen to previous episodes here. You can can download this Mp3 file directly from here.

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

Roanoke Valley Broadband Authority Issues RFP

The Roanoke Valley in Virginia has taken a deliberate pace on the road to improving local connectivity. On December 10th, the Roanoke Valley Broadband Authority (RVBA) released an RFP for proposals for an open access fiber optic network.

The RVBA is seeking a partner to build the network that will remain a publicly owned asset but will be managed by a private partner. According to the RFP, the City of Salem Electric Department has fiber in place that will be integrated into the the network. The RVBA has already invested in design, engineering, and permitting of 42 miles of a fiber network to jumpstart the process. Construction should begin this year.

In November, the Richmond Times-Dispatch reported:

The valley is often described as being caught in a “doughnut hole” for broadband service because it’s not a large enough area for the marketplace to drive creation of a truly high-speed network, but it’s too large to qualify for grants available to more rural locales.

The Times-Dispatch reports the estimated cost for the project is $4 million. 

Rock Falls to Expand Business Fiber Network

The community of Rock Falls, Illinois, recently decided to move ahead with a project to develop a municipal broadband utility, reports SaukValley.com. At a City Council meeting in early December, members unanimously voted to accept the findings of a feasibility study and move on to develop a formal business plan and preliminary engineering design. From the article:

Alderman Glen Kuhlemier said the table has been set for this project, and it would be foolish not to take advantage of what has already been done.

"To go backward is untenable after the foresight of the past," Kuhlemier said.

Rock Falls has an advantage because it already has substantial fiber resources in place. In the 1990s, the municipal electric utility installed fiber to connect substations. Thinking of the future, the electric utility installed ample fiber, which will significantly reduce the cost and burden to establish a network for business connectivity.

Rock Falls is no stranger to improving local connectivity. In the past, they used excess capacity to connect the city's schools and municipal facilities, reported American Public Power Magazine in 2010. The electric utility partnered with Essex Telecom, an ISP located in nearby Sterling, leasing some of their excess capacity to Essex so they could serve commercial customers.

The plan proposed by consultants would expand the network to connect half of the 350 businesses in the community. The consultanting firm estimates the deployment would cost $700,000 and the city would break even in 7 years.

Rock Falls, population approximately 9,200, is located on the Rock River in the northwest corner of the state; Sterling is immediately across the river. The community's municipal electric utility uses the river to generate hydroelectric power and customers pay rates 10-30% lower than those offered by neighboring investor-owned and cooperative utilities.

In recent years, the population has started to decline. Community leaders intend to jumpstart economic development with the added investment in fiber infrastructure.

SpringNet Sells Underground Colocation Facility

SpringNet has spurred economic development in Springfield, serving small businesses but also providing high-speed data to big employers such as Expedia. The network has steadily increased revenue over the years, even though it serves only commercial and public sector customers.

Demand for services has lead to the need to expand so SpringNet is opting to go lean. In 2002, the utility developed SpringNet Underground, a secure data and colocation center. The venture has been successful, says General Manager Scott Miller, but SpringNet sees investing the fiber network paramount and recently sold the facility. Bluebird Network purchased the facility for $8.4 million and will continue to serve the existing customers.

OzarksFirst recently ran the story:

Erwin FTTH Pilot Project Moving Forward

Erwin, Tennessee announced last summer that it was planning an FTTH pilot project to connect 1,200 customers. After receiving the necessary approval from the state comptroller this summer, Erwin Utilities began construction in October, reported the Erwin Record.

The pilot project focuses in and around downtown and leadership at Erwin Utilities plan to use the network for the town's electric system, water system, and wastewater system in addition to high-speed connectivity. Lee Brown, General Manager of the municipal utilities, reported that the network will provide services up to a gig.

From an August Johnson City Press article:

“This project will enable Erwin Utilities to provide improved electric, water and wastewater services while enhancing the quality of life and creating economic opportunities for citizens within Erwin Utilities’ service area,” he said. “I expect the benefits of this project to our customers and community to be substantial.”

...

“It’s our intent to be able to deploy this over our whole customer service area in the future, and of course, the success of the pilot project will somewhat dictate how quickly we’ll be able to do that,” Brown said. 

The first phase of the project is scheduled for completion in early January.

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.