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Kentucky City Transfers Ownership of Network, Still Under Local Control

The city of Franklin, KY transferred ownership of its fiber optic network to the Franklin Electric Plant Board (EPB) for $2.5 million. The Franklin City Commission unanimously approved a resolution for the transfer of ownership at the June 8th meeting. The network, although no longer maintained by the city, is still under local control. The EPB is an extension of city government, but has its own board of directors. Pleased with the city’s decision, Mayor Ronnie Clark stated:

"Broadband is now the new utility, and who better to deliver those services than the local infrastructure experts, EPB. They have the manpower and the equipment, as well as the community's confidence in providing reliable utility service and exceptional local customer support."

The city developed the 32-mile fiber optic network to encourage economic development by providing broadband to local businesses. The network attracted to new businesses including a distribution center from Tractor Supply Company. Currently, the network supports Internet connectivity to more than 40 business and industry customers in Franklin. The EPB hopes to continue to expand the services: 

"This network will be an excellent fit for us operationally, and will enable us to expand our role in serving our customers with the most robust broadband services available. We have big plans to add new services and grow our broadband customer base," said General Manager of EPB Bill Borders.

In this $2.5 million deal with EPB, the city will recoup the $2.5 million cost of constructing the network. Originally, the city funded $1.5 million with bonds and received a $1 million grant from the U.S. Department of Commerce Economic Development Administration. The sale of the network to the EPB will pay off a $1.3 million bond issued to create the network and the remainder will go into the general fund. 

Lafayette Celebrates 10 Year Anniversary of "Yes" to Network

In June, 2005, voters in Lafayette chose to invest in a municipal FTTH network, now known as the only municipal gigabit network in the state, LUS Fiber. To celebrate the milestone, City-Parish President Joey Durel has declared July LUS Fiber Month. Current customers' Internet access has been boosted up to gigabit speed at no extra charge for July and the city will celebrate with a series of events this week. The entire community is invited to participate onsite but most of the events will be broadcast live so if you are not there, you can be part of the celebration. See the list of events below.

In the past ten years, the network has attracted thousands of new jobs, created better educational opportunities, and helped bridge the digital divide. Just last fall, three high tech companies committed to bringing approximately 1,300 new jobs to the "Silicon Bayou." The presence of the network, the University of Louisiana's local top-ranked computer science program, and its quality grads were two more key factors for choosing Lafayette. In April, Standard & Poor gave LUS Fiber an A+ bond rating based on the system's "sustained strong fixed charge coverage and liquidity levels, and the communication system’s improved cash flow."

The July issue of the local Independent tells the story of the network. According to Terry Huval, Director of LUS Fiber, the self-reliant streak has always been part of Lafayette's culture - in 1996 the city celebrated its 100th year vote to create its own electric and water system. The Independent article describes that culture as it permeated the vision shared by City-Parish President Joey Durel and  Huval.

"The vision was simple: Lafayette was already benefiting from a very successful electric, water and wastewater system, and LUS could leverage its expertise to offer Internet and other telecommunications services, if that is what our community wanted,” he says. “After we threw out the idea, the entrepreneurial, wildcatter spirit of Lafayette seemed to take it from there.”

lus-fiber-win-fight.jpg

Even with a vision, it took strong community organizing to overcome incumbent efforts to derail any municipal network project. John St. Julien was at the front of those efforts; he spoke with Chris in episode #19 of the Community Broadband Bits podcast about organizing strategies and fending off attacks from incumbent providers. Mobilizing to improve connectivity with a fiber network brought together individuals from every demographic in the community. Business leaders worked with community activists because they all needed better connectivity.

Fighting misinformation and lies from incumbents became a valuable tool, reports the Independent:

The citizen group was able to settle into reaction mode: Once the dumb, clunky messages came out, they took to their emails and blog and pointed out every single lie. It wasn’t just an opportunity to educate; it was an opportunity to draw on local pride and, again, that spirit of audacity. “It was a lot of fun to watch, waiting for them to say something else ridiculous and outrageous,” John St. Julien remembers.

Those clunky messages eventually backfired and, with anti-incumbent sentiment strong, the voters chose to serve themselves with a publicly owned, accountable, reliable municipal network.

Achieving success has not been easy as LUS Fiber has had to contend with lawsuits, delays, restrictive state laws, and twisted criticisms over the past ten years. While Lafayette has much to celebrate, Huval reflected in the Independent article on what more could have been accomplished if the situation were different:

We entered this arena as underdogs.

We had to fight for every success we achieved. We were forced to accept a law that was going to make our entry into this business far more difficult. We incurred lawsuit delay after lawsuit delay — delays that impacted our entry into this competitive market for three years. I know of no local government telecom system that has had to go through the extreme challenges we encountered.

If we would not have had all these early legal impediments, we would have been on-line faster and drawn in far more customers, more quickly. If we could have captured the level of strong enthusiasm in those early years, there is no doubt our revenues would have been stronger, and we could have been even more creative and aggressive. ... Under the circumstances, there was not much we could have done differently and still reach a successful business result.

We concur. Lafayette's success is all the more powerful given the tremendous obstacles they had to overcome. But they overcame them and kept a sense of humor throughout. We have greatly enjoyed every opportunity to interact with everyone we have met from Lafayette - from Joey Durel, Terry Huval, and John St Julien to recent transplant Geoff Daily to the folks making poboys at Olde Tyme Grocery.

Thanks to the city utility, local Cox customers report that the company appears to be reacting to the competition with more reasonable rates and better customer service. LUS Fiber is in the black and revenues are projected to reach $50 million per year in the next nine years. While LUS Fiber and the people of Lafayette are celebrating success as measured by time on the calendar, they can also celebrate their own grit and determination. 

Durel to the Independent:

I knew this had the possibility of transforming Lafayette — that 25 years later, Lafayette would be a better place because of this...Even if fiber just breaks even, but we create thousands of new jobs because of it, that’s a win.

Watch video below from KLFY Channel 10 reported on the network earlier this month, highlighting one of the telemedicine applications made possible by LUS Fiber.

 


Schedule of events:

Reddit Ask Me Anything (AMA) With City-Parish President Joey Durel and LUS Fiber Director Terry Huval

Tuesday, July 14th - 1:30 - 3:30 p.m.

Get answers to your questions as we host an AMA session. Join us by going to http://reddit.com/r/iama

Fiber for Breakfast

logo-LUS.gif

Wednesday, July 15 - 7:00 - 10:30 a.m. CST


Live Remote Broadcast on KATC-TV 
LUS Fiber Customer Service Center - 1875 W. Pinhook Road
Join us for a live remote braodcast on KATC-TV and a breakfast bite.

George Porter, Jr. & the Runnin Pardners
 The Park at the Horse Farm

Levitt Amp Concert Series feat.

Wednesday, July 15 - 6:30 - 8:00 p.m.


Come out and celebrate with LUS Fiber - a night of great music and fun, in a venue steeped with history.

LUS Fiber joins City-Parish President Joey Durel for "Lafayette Live" on KPEL


Thursday, July 16 - 7:30 - 8:00 p
.m.

City-Parish President Joey Durel is joined by LUS Fiber Director Terry Huval during "Lafayette Live" on 96.5 KPEL. Be sure to tune-in as they reminisce the 2005 Election and the ten-year road that followed.

Our report, Broadband at the Speed of Light: How Three Communities Built Next-Generation Networks dives deep into Lafayette's accomplishment. But in terms of our enthusiasm for what Lafayette has accomplished, well ... Kermit is a pretty good proxy for how we feel:

Boulder Releases RFP For Broadband Feasibility Study

In June, Boulder released a Request for Proposals (RFP) as it seeks a consultant to conduct a broadband feasibility study. A PDF of the RFP is available online.

The city currently has 179 miles of fiber in place serving 60 city facilities; there is an additional 36 miles of empty conduit. This network interfaces with the Boulder Valley School District's network within the city and in other areas of Boulder County. It also connects to Longmont's network and to a colocation facility in Denver. 

The city is also home to BRAN -  the Boulder Research and Administration Network. The city, the University of Colorado at Boulder, the National Center for Atmospheric Research and the Department of Commerce Laboratories share ownership of the BRAN fiber network which interconnects their facilities.

Last fall, Boulder joined a number of other Colorado communities whose voters chose to reclaim local telecommunications authority, revoked in 2005 under Colorado State Bill 152.

The city established a Broadband Working Group earlier this year to investigate ways to bring better connectivity to Boulder. They created a draft vision, included in the RFP:

Draft Vision: Gigabit Broadband to Boulder Homes and Businesses

(May 21, 2015)

Our vision is to provide a world-class community telecommunications infrastructure to Boulder for the 21st century and beyond, facilitated by new access to the public’s local telecommunications assets. We acknowledge that broadband is a critical service for quality of life, as is the case with roads, water, sewer, and electricity. Every home, business, non-profit organization, government entity, and place of education should have the opportunity to connect affordably, easily, and securely. Boulder’s broadband services will be shaped by the values of the community.

We intend to empower our citizens and local businesses to be network economy producers, not just consumers of network information and data services. We realize that doing so requires access to gigabit-class broadband infrastructure to support these needed services and capabilities:

1. Broadband Infrastructure: Provide the infrastructure to enable every Boulder home, business, visitor, and public or private institution the opportunity to access affordable high speed broadband connections to the Internet, and other networks.

2. Open Access: Demonstrate, support, and build a non-discriminatory, open-access infrastructure that should, to the maximum extent possible, be open to all users, service providers, content providers, and application providers and be usable via all standard commercial devices.

3. Competitive Marketplace: Facilitate a local broadband marketplace that is as competitive as reasonably possible. 

4. Compete Globally: Provide stakeholders with the broadband capacity, affordability and local, regional and national connectivity they need to compete successfully in the global marketplace. 

We envision significant progress toward an operational network in 1-2 years with commitments from providers, community stakeholders, regional partners, and a common, shared vision to make gigabit-class bandwidth available to all residents, businesses and workers in Boulder.

As mentioned in the RFP, Boulder is currently in the process of municipalizing its electric utility services. The city mentions that the firm selected for the electric utility project is available to provide information about infrastructure or related issues for a more accurate study.

Last summer, Chris spoke with Don Ingle, Director of Information Technology from Boulder, for episode #108 of the Commnity Broadband Bits podcast. Don shared information about the city's policies that helped develop their existing fiber and conduit assets. Chris and Don also discussed ways Boulder has benefitted from its existing network.

The city is already offering free Wi-Fi in the downtown Civic Area. They have produced a video on the service:

City launches free public WiFi in Civic Area from City of Boulder on Vimeo.

Call Center Central: Morristown, Tennessee?

The city of Morristown, Tennessee received more positive economic news recently when Sykes Enterprises, a global company that operates in more than 20 countries, announced plans to open a call center in an abandoned big-box store and connect to the city’s municipal network, FiberNet. Sykes estimates that the call center will employ up to 500 workers over the next three years, the large majority of which will come from the Morristown community. 

In Morristown, Sykes will join Oddello Industries, a furniture manufacturer, and the Molecular Pathology Laboratory Network, a personalized health firm – other companies that have cited the fiber network as an important part of their decision to locate facilities in the city of 30,000 people. 

According to the president of the Morristown Chamber of Commerce, Marshall Ramsey, the existence of FiberNet played a role in attracting the 50,000-plus employee firm to Tennessee: 

For Morristown to be able to have a local provider and a secondary provider in AT&T with a gig gives us that redundancy that most companies can’t get elsewhere in the country. 

FiberNet is operated by Morristown Utility Systems, the publicly owned electric and water utility. It began offering gigabit Internet speeds in 2012, though it has served local businesses since 2006. 

This is the second time in two months WBIR – Morristown’s NBC network – has run a story about FiberNet. In May, the station covered the way in which the municipal fiber network has stimulated economic development by increasing competition between service providers. When FiberNet upgraded its network to provide gigabit speeds, the incumbent telephone company in Morristown, AT&T, responded with some upgrades of its own. Morristown is one of a select few cities to have multiple gigabit-offerings, along with neighboring Chattanooga, Tennessee.  

Chris interviewed General Manager and CEO of FiberNet, Jody Wigington, in 2013 to discuss the municipal network’s deployment. You can find the interview here.

Local station WBIR covered the story:

Holyoke: A Massachusetts Municipal Light Plant Seizes Internet Access Business Opportunities

Publication Date: 
July 8, 2015
Author(s): 
David Talbot
Author(s): 
Waide Warner
Author(s): 
Carolyn Anderson
Author(s): 
Kira Hessekiel
Author(s): 
Daniel Dennis Jones

Fifteen years ago, Holyoke Gas & Electric  (HG&E) began its incremental fiber deployment to meet the need for better connectivity in the community. Since then, they have invested savings created by initial and subsequent investments. Over the years, HG&E expanded their services, becoming the ISP for several local business customers in two nearby communities. HG&E also established a regional interconnection agreement and it is now an ISP for municipal agencies in a third community 30 miles away.

The Berkman Center's most recent report, report, "Holyoke: A Massachusetts Municipal Light Plant Seizes Internet Access Business Opportunities,” documents their story.

Storm Lake, Iowa, Plans Community Anchor Fiber Network

Storm Lake’s city council recently approved a resolution to collaborate with other entities in Buena Vista County to install a fiber optic network. For this fiber project, the city, school district, and county have forged a partnership to share the costs and reap the benefits of the estimated $1,374,335 project.

As the county seat, the city has 10,600 residents, a waterpark, a college, and a small school district of 2,442. The project’s origins started with an effort to improve water and wastewater communication. In exploring their options, the city decided fiber would replace the wireless radios. The fiber will also provide more reliable and secure communications for the government and school facilities.

City leaders estimated the cost only for a contract to lay a system of ducts for the fiber. They will also consider trenchless methods of distributing the fiber throughout the city. The cost estimate does not include the hardware needed to connect the fiber at each school and government facility in Storm Lake. The city intends to purchase the fiber in a separate contract in order to minimize costs and ensure quality.

The City Clerk Yarosevich has said that they expect the base project to be completed this year with the currently available funds of $700,000-$800,000. The base project has five possible expansions to be completed with additional funding. Construction on the base project is  expected to be mostly finished by December 18th 2015. 

The collaboration between the City of Storm Lake, Buena Vista County, and the Storm Lake Community School District is anticipated to bring savings to the community. The $1.4 million cost will be split among the three agencies, and the network itself is expected to reduce costs for internet, phone, and hardware. By creating the network themselves, they intend to ensure collaboration in the future and save on costs. From the June 1st City Council meeting agenda item:

"Over time the investment in this infrastructure will provide reduced costs for internet, phone, and data hardware (such as servers) as we can combine and share resources across the network.  Additionally, the network will provide the opportunity for the three agencies to work together in the future for technology purposes as well as provide all the entities with a continuity of service options throughout the City."

An increasing number of communities are taking this approach to fund their networks. Last year, Monticello, IL used such a partnership to build the city’s fiber optic network. Monticello, IL is also a county seat and has 1,600 students, similar to Storm Lake. The city, county and school district chose to share the costs of building the network to increase Internet access and savings.  The school district increased its Internet access from 170 Mbps at $3,500 per month to 200 Mbps at $1,750 per month. As this approach proves to be cost effective, more cities may partner with their school districts and counties to bring better connectivity to their communities.

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.”