Early last year, the city of Steamboat Springs in Colorado took advantage of an opportunity to expand from an earlier public infrastructure investment. A state grant has allowed them to connect five community anchor institutions for better connectivity and cost savings.

Partners In Progress

In 2016, the Colorado Department of Local Affairs (DOLA) awarded the community $748,000 toward the cost of a fiber backbone across the length of the city. In order to complete funding for the $2.22 million project, the city and its other partners, the Steamboat Springs School District, Routt County, Colorado Mountain College, Yampa Valley Electric Association (YVEA), and Yampa Valley Medical District contributed matching funding.

Five community anchor institutions (CAIs) are now connected to the backbone, including the local U.S. Forest Service and Colorado Parks and Wildlife offices, the YVEA offices, and the school district building. The school district is also housing the communities publicly owned Carrier Neutral Location (CNL), which the city created in 2014.

The CNL Started It All

The CNL is a space owned by a neutral party - in this case the Steambot Springs School District city of Steamboat Springs - where broadband providers can connect to each other. Middle mile and last mile providers can connect to each other in these “meet-me rooms.” The partners in Steamboat Springs are saving because they’re paying less for bandwidth and, because the school district is hosting the meet-me room, there is no need to pay for a separate facility. In Steamboat Springs, Northwest Colorado Broadband connects with Mammoth Networks.

Community leaders hope the presence of the CNL and the fiber backbone will attract last mile providers to invest in Steamboat Springs so residents and businesses can obtain better connectivity in the future. 

This is the transcript for episode 266 of the Community Broadband Bits podcast. Benoit Felten of Diffraction Analysis offers a global perspective on telecommunications policy. Listen to this episode here.

Benoit Felten: Japan and Korea would be forward-thinking businesses, then Europe would be short-term businesses but forced to look at the long-term through policy, and then the US would be short-term businesses, laissez-faire, do what you want.

Lisa Gonzalez: This is episode 266 of the Community Broadband Bits podcast from the Institute for Local Self-Reliance. I'm Lisa Gonzalez. Benoit Felten is back on the show to talk more about connectivity from an international perspective. He last visited with Christopher way back in 2012 for episode 21. This time they discuss several models that his company, Diffraction Analysis have studied in areas other than the US. Learn more at the company website DiffractionAnalysis.com. Before we start the interview, we want to remind you that this commercial free conversation is not free to produce. Please take a moment to contribute at ILSR.org. If you've already contributed, thanks. Now here's Christopher and Benoit Felten from Diffraction Analysis.

Christopher Mitchell: Welcome to another addition of the Community Broadband Bits podcast. I'm Chris Mitchell with the Institute for Local Self-Reliance and today I'm speaking with Benoit Felten, the CEO of Diffraction Analysis. Welcome back to the show, Benoit.

Benoit Felten: Thanks for having me.

Christopher Mitchell: We last talked about Stokab, I think in Stockholm. You are the CEO of Diffraction Analysis which does telecommunications research all around the world and I often think of you as my go-to person on how things work outside US and sometimes inside the US. Let me ask you, Benoit, when you hear people saying, "The United States sucks at broadband and Europe is so amazing." How do you react to those monolithic statements?

With a growing need for fast, affordable, reliable connectivity, an increasing number of schools are constructing fiber optic infrastructure to serve their facilities. In some cases, they partner with local government and a collaboration eventually leads to better options for an entire community. Schools in Orange County, Virginia, will be working with county government to build a $1.3 million network.

Quickly Growing Community

Orange County’s population of approximately 34,000 people is growing rapidly, having increased by 29 percent between 2000 and 2010. Nevertheless, it’s primarily rural with no large cities. Gordonsville (pop. 1,500) and Orange (pop. 4,800 and the county seat) are the only towns. Another community called Lake of the Woods is a census-designated place where about 7,200 people live. The rest of the county is filled with unincorporated communities. There are 343 square miles in Orange County of rolling hills with the Blue Ridge Mountains to the west.

Manufacturing and retail are large segments of the economy with 65 percent of all business having four or less employees as of 2013. Agriculture is also an important part of the community, including the growing local wine industry.

Working Together To Connect The County

The county and schools have teamed up to commence a multi-step project that begins by connecting the Orange County Public Schools’ facilities. A 33-mile wide area network (WAN) will connect all eight buildings. Federal E-rate funds will pay for approximately 80 percent of the deployment costs and Orange County and the school district will share the remaining costs from other funding. The partners plan to deploy extra capacity for future uses.

Once the first phase of the network is complete, the county hopes to use the excess capacity to improve public safety operations. Sheriff, Fire, and EMS services need better communications so the county intends to invest in additional towers, which will also create an opportunity for fixed wireless and cellular telephone providers.

When local communities look for ways to improve connectivity, they may consider investing in a municipal fiber optic network. As they begin to review possible options, local officials, their staff, and community groups will realize that there are a number of potential models. We’ve put together the Muni Fiber Models fact sheet that takes a brief look at those models and provides some examples.

From “Retail” to “Tubes In The Ground”

Chattanooga is the most well known municipal Fiber-to-the-Home (FTTH) network and is offered by the community’s Electric Power Board (EPB). EPB’s service offers telephone, Internet access, and video service directly to subscribers. The fact sheet provides more examples of communities that have decided that full retail service is right for them. On the other end of the spectrum, places like Lincoln, Nebraska, provide only the infrastructure and lease it to private sector providers who then offer retail services to businesses and residents. The other approaches we find most commonly used include open access, I-Nets, and Partnerships between local government and the private sector.

We’ve included short explanations for each model and provide some examples for a starting point. We encourage you to share the fact sheet with others who are interested in learning about different paths to better connectivity through publicly owned networks.

Download the Muni Fiber Models fact sheet here.

Review our other fact sheets and check back periodically for new additions. Fact sheets are a great way to quickly and easily share information and cultivate interest in learning more.

In August, voters in Lyndon Township, Michigan, will decide whether or not they want to approve a plan to invest in publicly owned fiber optic Internet infrastructure.

It’s All In The Mills

Voters are being asked to approve a millage increase of 2.9 over a 20-year period. In other words, property taxes will increase approximately $2.91 per $1,000 of taxable value of a property. Those funds will be used to fund a bond to finance the project; city leaders have already determined that the principal amount of the project will not exceed $7 million.

Once the infrastructure has been completed, the community plans to partner with one or more Internet Service Provider (ISP). Estimates for monthly millage bond costs and monthly cost for Internet access at 100 Megabits per second (Mbps) are approximately $57 for Lyndon Township’s average homeowner. Gigabit access will be available and will cost about $25 more each month.

If funding is approved, the community expects to finish the project and be using their new Internet infrastructure by the end of 2018.

Supported By Citizens

The issue of better connectivity in Lyndon Township isn’t a new one. At a meeting in March 2016, Township Board members voted 5-0 to fund a feasibility study. The Board had approached providers about improving connectivity in the area, but none considered an investment in Lyndon Township a good investment. 

At the meeting, members of a broadband initiative started by local residents shared their stories. As is often the case, local residents described driving to the library or Township Hall to access the Internet because their own homes were unserved or connectivity is so poor. According to a Chelsea Update article, when the Board approved the feasibility funding, “[t]here was a vigorous round of applause from the crowd.”

The community of Holland, Michigan, has moved carefully and deliberately as it has advanced toward providing better connectivity through publicly owned infrastructure. On June 7th, the City Council held a first reading on an ordinance that will allow the Holland Board of Public Works (BPW) to act as an Internet Service Provider (ISP) as it expands its Fiber-to-the-Home (FTTH) pilot project.

Taking Another Step Forward

Holland's pilot project brings high-quality connectivity to several downtown businesses and recently adopted a Master Plan in March to solidify their commitment to more businesses and residents. The ordinance will receive a public hearing, final reading, and likely be adopted on July 19th. It allows Holland to adopt fees and charges related to the new service and will permit the city to comply with a state law relating to rights-of-way and telecommunications providers.

In addition to offering Internet access themselves, BPW will open up the fiber so competing providers can serve Holland residents and businesses. BPW officials are still hashing out rate details, but estimate residential customers who take Internet service from the utility will pay approximately $85 per month for symmetrical gigabit (1,000 Megabit per second) connectivity. Customers who wish to obtain Internet access from a provider other than BPW will pay $40 - $60 per month for transit services from BPW, but will still need to pay an ISP for Internet access. 

One Step At A Time

BPW General Manager Dave Koster explained to City Council members that BPW described the pilot participants’ service so far as “outstanding.” The utility intends to monitor the success of the expanded pilot services for a year and then decide their next step.

Construction will begin in August; BPW expects to start serving new customers in October. BPW officials estimate the expanded pilot will cost $602,000 based on a 35 percent take rate.

Read the ordinance here.